https://www.cnn.com/2019/07/05/investing/dow-stock-market-today-jobs/index.html
2019-07-05 16:31:00Z
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Investing.com – Wall Street opened lower on Friday after news that the U.S. economy created more jobs than expected, dampening hopes that the Federal Reserve would cut rates aggressively at the end of the month.
The was down 19 points or 0.7% by 9:57 AM ET (13:57 GMT). The lost 152 points or 0.6% and the slipped 55 points or 0.7%.
"It is still more likely than not that the Fed will cut rates but the odds have decreased somewhat," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
"The 50 basis point cut should be priced out completely at this point.”
rose by 224,000 in June, well above consensus expectations for 160,000 and a sharp rebound from a downwardly-revised 72,000 in May.
Markets the central bank to ease monetary policy this year due to concerns over the damage caused by the U.S.-China trade war.
Banking stocks were higher on the prospect of interest rates staying higher for longer, with Bank of America (NYSE:) up 1.2%, JP Morgan rising 0.6% and Goldman Sachs (NYSE:) gained 1%.
Semiconductor companies struggled after Korean giant Samsung (KS:) said it expects second-quarter profit to have fallen dramatically. Intel (NASDAQ:) fell 2.0%, while Qualcomm (NASDAQ:) slipped 1.4% and Nvidia (NASDAQ:) lost 1.9%.
Meanwhile, Amazon.com (NASDAQ:) was down 0.6% after the U.K.’s Competition and Markets Authority told the e-commerce giant to pause its integration with meal delivery service Deliveroo, while it decides whether or not to launch an investigation into a possible competition breach.
In commodities, gained 0.5% to $57.62 a barrel. slumped 2.1% to $1,391.25 a troy ounce, while the , which measures the greenback against a basket of six major currencies, surged 0.6% to 96.930, its highest in over three weeks.
-Reuters contributed to this report
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By Medha Singh
(Reuters) - Wall Street's main indexes were set to open lower on Friday after a strong rebound in U.S. job growth in June dashed hopes of an aggressive interest rate cut by the Federal Reserve this month.
Nonfarm payrolls rose by 224,000 jobs last month, the most in five months, the Labor Department data showed. Economists polled by Reuters had forecast payrolls rising 160,000 jobs in June.
The closely watched employment report led investors to scale back bets of a 50 basis point rate cut by the central bank at its policy meeting on July 30-31.
However, moderating wage growth and mounting evidence that the economy was slowing sharply could still encourage the Fed to cut interest rates by a quarter point.
"It is still more likely than not that the Fed will cut rates but the odds have decreased somewhat," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
"The 50 basis point cut should be priced out completely at this point."
Wall Street's main indexes have rallied to record levels on hopes of a looser monetary policy from the Fed and other major central banks in the wake of a slowdown in global growth.
At 8:55 a.m. ET, Dow e-minis () were down 107 points, or 0.4%. S&P 500 e-minis () were down 15.5 points, or 0.52% and Nasdaq 100 e-minis () were down 58 points, or 0.74%.
Trading volumes are likely to be thin at the end of holiday-shortened week as markets were shut on Thursday for Independence Day holiday.
Chipmakers were hit by Samsung Electronics Co Ltd's (KS:) weak second-quarter forecast, as a supply glut and rising tariffs hit global demand for electronics.
Qualcomm Inc (O:) slipped 3.0% in premarket trade, with Intel Corp (O:) and Advanced Micro Devices Inc (O:) also falling.
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U.S. equity futures are trading lower after the better than expected monthly nonfarm jobs report.
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Wall Street reopens to trading on Friday following a record setting session and the July 4th holiday.
The June employment report reported 224,000 new nonfarm jobs were created, topping the estimate for 160,000.
The May numbers were revised lower by 3,000 to 72,000.
U.S. stocks traded higher on Wednesday lifting the Dow Jones Industrials, the S&P 500 and the Nasdaq to new records.
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Dow Jones Industrial futures are lower by 0.2 percent, , S&P 500 futures are down 0.3 percent and Nasdaq futures are lower by 0.4 percent.
In Asian markets on Friday, China's Shanghai Composite added 0.2 percent on the day and 1.1 percent for the week. Hong Kong's Hang Seng traded lower by 0.1 percent, but up 0.8 percent for the week. Japan's Nikkei rose by 0.2 percent and added 2.2 percent for a fifth straight week of gains.
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In Europe, London's FTSE slipped 0.4 percent, Germany's DAX is down 0.5 percent and France's CAC was down 0.3 percent.
By Medha Singh
(Reuters) - U.S. stock futures edged lower, on Friday, as investors awaited the monthly jobs data, which could offer clues on the Federal Reserve's move on interest rates.
Nonfarm payrolls data from the Labor Department is likely to show an increase by 160,000 jobs last month after rising by only 75,000 in May, according to a Reuters survey of economists. The data is due at 8:30 a.m ET (1230 GMT).
The likely rebound in U.S. job growth and expectations of a pick up in wage gains would probably not be enough to discourage the Fed from cutting interest rates this month amid growing evidence the economy is slowing.
A spate of weak economic data on Wednesday raised hopes of an interest rate cut and helped the Wall Street's main indexes clinch record closing highs.
"It appears that, unless the report shows a radically lower figure – as happened in May – markets could accept a broadly solid jobs report as confirmation that the July FOMC meeting will result in only 25 basis point of easing," Chris Turner, global head of strategy at ING, said.
Traders fully expect the U.S. central bank to lower borrowing costs by at least a quarter point at its policy meeting on July 30-31 and also see a 23% chance of a 50-basis-point reduction.
A protracted U.S.-China trade war is also seen as a reason behind the Fed's dovish stance, although a trade truce reached between the United States and China and their return to talks last week have tempered bets of a half-point cut.
At 6:52 a.m. ET, Dow e-minis () were down 35 points, or 0.13%. S&P 500 e-minis () were down 4.75 points, or 0.16% and Nasdaq 100 e-minis () were down 15 points, or 0.19%.
Trading volumes could be thin at the end of holiday-shortened week as markets were shut on Thursday for Independence Day holiday.
Among stocks, Qualcomm Inc (O:) fell 2.9% in premarket trade, with Intel Corp (O:) and Advanced Micro Devices Inc (O:) also trading lower, after Samsung Electronics Co Ltd (KS:) forecast a steep plunge in its second-quarter operating profit due to a supply glut and rising tariffs hitting global demand for electronics.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.