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NFP report for July tops expectations
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US long-end bond yields push higher after NFP beat
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Smalls caps outperform, tech stocks lag behind
US markets opened mostly higher on Friday after strong NFP print. The data showed that the US economy added 943k jobs in July against expected 900k. Also, last month’s data was revised to the upside (938k vs 850k).
The impact of the release is extremely apparent during the ongoing US session. Russell 2000 (US2000) outperforms as the reflation trade is up again. Bank stocks gained amid steeper yield curve - US bond yields advanced after the NFP print. US 10y Treasury yield jumped by 6 bps towards 1.28%. On the other hand, Tech stocks are down as “long-duration assets” are under pressure amid advancing bond yields. Nasdaq100 (US100) is trading roughly 0.30% lower.
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US2000 is an outperformer during today’s US session amid strong jobs data. The index is trading near 2,252 pts area, which served as an important resistance in recent days - this could be the main obstacle for market bulls. Should buyers succeed, the attention may shift towards the 78.6% Fibonacci retracement near 2,293 pts (looking at H4 interval). On the other hand, the area near 2,194 pts (38.2% retracement) should serve as the nearest support. Source: xStation5
Company News:
United Airlines (UAL.US) announced it will require its 67,000 US employees to get vaccinated. The company is the first large airline to mandate vaccines for its workforce, thus putting pressure on its rivals. Employees ought to be vaccinated either 5 weeks after the FDA fully approves a Covid-19 vaccine or 5 weeks after September 20, whichever comes first.
United Airlines (UAL.US) stock is trying to make a rebound, but so far shares have been unable to break above the downward trendline. The price bounced off the $42.55 level in July and painted a higher low this week - a promising sign in terms of potential sequence of higher lows and highs. Nevertheless, the mentioned trendline seems to be a tough obstacle for bulls for now. The area near $50-51 may be another critical resistance should a breakout occur. Source: xStation5
Novavax (NVAX.US) shares plunged as the drugmaker said it would delay seeking emergency use authorization for its Covid-19 vaccine until Q4. Also, the company released worse-than-expected results.
Beyond Meat (BYND.US) tumbled after the company reported a quarterly loss of 31 cents per share, 7 cents wider than Wall Street’s consensus estimate. Even though the firm’s revenue topped expectations, the outlook may have left investors hungry. The company warned of “near-term uncertainty related to COVID-19 and its potential impact on retail and foodservice demand levels”.
