Friday, July 2nd, 2021
Flame car brakes Tesla
Job engine fuels Wall Street’s record run
In June, 850,000 new jobs were created in the United States. That drives the S&P 500 and Nasdaq to new record highs. At the same time, the increased unemployment rate causes astonishment. The same applies to the burning luxury Tesla. The impressive delivery figures do not matter.
After the subdued start to the new quarter, Wall Street showed a premium on Friday. The S&P 500 and the Nasdaq indices posted further record highs. The Dow-Jones-Index rose by 0.4 percent to 34,786 points, S&P-500 and Nasdaq-Composite increased by 0.8 percent each.
A real end to the lethargic and listless summer trade was initially not in sight – even if the US labor market report was received cautiously positive. “The overall improvement in the labor market allows the market to continue in its current phase of slow and gradual growth, which is the best scenario,” said Randy Frederick, vice president of trade and derivatives at Charles Schwab.
850,000 new jobs were created outside of agriculture, economists had only expected 700,000. “These are strong numbers, but not so strong that they could trigger fears of inflation and interest rate hikes,” said market analyst Fawad Razaqzada of broker ThinkMarkets.
The unemployment rate causes amazement
The fact that the unemployment rate was determined separately caused astonishment among stock exchange traders rose by a tick to 5.9 percent. “With similarly strong job growth rates, we saw significant declines in the unemployment rate last autumn,” summarized portfolio manager Thomas Altmann from asset manager QC Partners. That will make it difficult for the Fed to think about tightening monetary policy immediately.
The long weekend also spoke against an overly positive market reaction, because the American Independence Day holiday will be made up for on Monday with closed stock exchanges. The risk appetite should therefore not have been too pronounced, it said.
The other economic data published on Friday – the trade deficit and incoming orders from May – were in line with expectations.
The dollar’s weakness and the prospect of monetary policy remaining loose in the short term supported the gold price. Oil prices were inconsistent. While the US variety WTI was quoted hardly changed in late trading, the price of Brent rose by 0.5 percent. The day before, the Opec + group had not been able to agree on an increase in oil production. The decision should be made on Friday, but negotiations dragged on. The majority of analysts expect a slight increase in production by 500,000 barrels per day.
Didi under attack
In the case of the individual values, the driving service broker is riding Didi under fire a few days after its stock market debut. China’s Uber rival shares plunged more than six percent after China’s cyber agency announced an investigation into possible security concerns. This should protect national security and the public interest, it said on the part of the state. Didi announced that he would cooperate with the authorities.
The share of Johnson & Johnson closed 1.8 percent tighter. The pharmaceutical company announced that its corona vaccine apparently also protects against the increasingly spreading delta variant of the virus.
From new US sales figures showed Ford (plus 0.1 percent) and General Motors (minus 0.3) unimpressed. The electric car manufacturer can claim to be a winner Tesla feel, who delivered more than twice as many vehicles in the second quarter as in the previous year. Here, however, the news that a new vehicle of the type “S Plaid” had gone up in flames in the middle of a residential area slowed down. The driver was only able to save himself from the burning car by force. The price rose by 0.1 percent.
Virgin take off
Virgin Galactic is flying high – the share also benefited, rising 4.1 percent. The British billionaire Richard Branson wants to fly into space with a spaceship belonging to his company Virgin Galactic on July 11th – and thus beat his US competitor Jeff Bezos by nine days. If everything goes according to plan, Branson would make it into space before US billionaire Bezos. The Amazon founder wants to fly into space with the first manned flight of his space project Blue Origin on July 20.
The titles of the donut chain Krispy Kreme meanwhile fell 9 percent. The day before, the company had celebrated a brilliant return to the stock exchange – the price had risen by almost 24 percent.