Friday, May 7th, 2021
Weak job data is a short shock
Wall Street marches to new records
The US stock exchanges seem unstoppable and are marking new all-time highs. Even an unexpectedly weak job report cannot do anything about it. On the contrary: interest rates are likely to remain low for a little longer. Shareholders rub their hands and keep grabbing.
He has a blatant failure of the market forecast on the labor market Wall street initially brought a moment of shock. But it didn’t last long. As soon as the shock was over, the Dow Jones and S&P 500 marched on All time highs. The labor market report missed market expectations by light years. But the weak data took away concerns about a turnaround in interest rates. Above all, the technology stocks on the Nasdaq initially benefited. But as the broader market rallied, technology stocks came back from their daily highs.
“One thing is clear. The loose monetary policy will not give way anytime soon,” said AvaTrade’s chief market analyst Naeem Aslam, summarizing the mood in trading. Minneapolis central bank governor Neel Kashkari was also surprised by the data. The Dow Jones Index climbed 0.7 percent to 34,778 points, the S&P 500 rose 0.7, the tech-heavy one Nasdaq Composite by 0.9 percent.
In addition to the prospect of maintaining the ultra-loose Monetary policy US President Joe Biden also fueled the stock market. Because he took the disappointing labor market data as an opportunity to advertise again for his massive infrastructure package, with which millions of jobs are to be created.
Dollars under pressure
On the foreign exchange market got the dollar with the disappointing data under pressure. The ICE dollar index fell 0.7 percent, the euro soared to $ 1.2171 after exchange rates by 1.2060 before the data. Interest rate speculation would be priced out, it said.
At the Bond market The situation calmed down in the course of the business, and in late business the yield on ten-year US government bonds was almost unchanged at 1.57 percent. Yields thus recovered significantly from their daily lows. The weak data, the prospect of continued low interest rates and the weak dollar fueled the gold price, which climbed to its highest level in almost three months.
The Oil prices hardly changed after initial losses – on a weekly basis, prices rose by 2.1 percent. On the oil market, the effects of demand were viewed as rather minor. After all, there is still a lot of job creation in the USA, it said. Dealers warned, however, that the Opec + group’s production expansion is taking place too quickly in view of the corona crisis in India.
Roku and Biontech very firmly
The price of the individual shares rose in price Roku by 11.5 percent after the manufacturer of streaming hardware reported a profit jump in the first quarter and delivered an optimistic outlook. Business figures and outlook from camera manufacturer Gopro (plus 3.4 percent) were also well received.
Peloton closed slightly in positive territory, although the manufacturer of fitness equipment had revised its outlook downwards due to a recall. However, the fatal accident scandal involving the company’s treadmill had already weighed on the stock in the past few weeks. The A shares of News Corp gained 5.5 percent. The media group, to which this news agency belongs, had increased sales in its third quarter of business and again achieved a profit of millions.
The German Biontech put down 9.4 percent and Pfizer by 1 percent. The partners are relying on the full approval of their successful corona vaccine for young people as well. After business figures exceeded expectations, the titles of the travel portal rose Expedia by 5.2 percent. After positive sales development, the course of the data storage moved Dropbox by 0.7 percent.
The papers of the meatless food producer Beyond Meat fell 7 percent. The company is increasingly relying on a cooperation with McDonald’s. But many fast-food restaurants here are still closed due to the corona. The shares of the electric commercial vehicle manufacturer Nikola increased by over 13.4 percent. With an adjusted loss, the company had fared better than feared.
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