US OPEN: Wall Street dips slightly after upbeat NFP data

14:45 8 July 2022

The final session on Wall Street this week begins with declines in stock index valuations, which are reacting to strong NFP data. The strong reading from the U.S. labor market heightens concerns about a hawkish Fed that may continue its hawkish macroeconomic policies. FED Bostic advocated a 75 bps hike at the July FOMC meeting.

The US economy unexpectedly added 372k jobs in June, compared to 390k increase in May and well above market expectations of 270k. Figures came in line with the average monthly gain of 383K over the prior 3 months, still pointing to a tight labor market. Notable job growth occurred in professional and business services, leisure and hospitality, and health care. Closely watched wage growth fell to 5.10% YoY,  from an upwardly revised 5.3% increase in May, above analysts expectations of a 5.0% YoY.

 

U.S. equities begin today's session with declines, with the US500 index struggling to hold support set by the abolition of the 23.6% Fibo of the downward wave that began at the end of March 2022.  Source: xStation 5 

Company News:

  • Shares of Levi Strauss (LEVI.US) are up nearly 4% at the opening of today's session due to the release of upbeat quarterly results and a 20% dividend increase.

  • As we mentioned in an earlier post HERE, GameStop (GME.US) shares are losing nearly 6% at the start of today's session due to the firing of the company's CFO and announced layoffs. 

  • Twitter (TWTR.US) shares are down nearly 4% today following a Washington Post report that Elon Musk's deal to buy Twitter may be in jeopardy. 

  • Upstart Holdings (UPST.US) shares are losing nearly 16.5% today after the company communicated that it will not be able to meet already lowered earnings targets for the second quarter.

  • Warren Buffet's Berkshire Hathaway (BRKA.US) purchased an additional 12 million shares of Occidental Petroleum (OXY.US) and now owns 18.7% of them. Occidental's shares are currently gaining nearly 2%.

Most Active Securities; USA. Source: Bloomberg

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