(News Bulletin 247) – Wall Street is moving on a hesitant note on Friday after the official employment figures, which showed a slowdown in the pace of job creations but also a drop in the unemployment rate, a new sign of the strength of the market work.
An hour after opening, the Dow Jones fell 0.1% to 33,879.4 points, but the Nasdaq Composite managed to nibble 0.1% to 13,694.2 points.
The Department of Labor recorded 209,000 non-farm payrolls in June, compared to 306,000 the previous month (revised figure) and a consensus which aimed for 240,000.
But the continued rise in wages and the decline in the unemployment rate, down to 3.6% from 3.7% in May, seem to bear witness to the persistent vigor of the labor market.
After having initially welcomed these figures, Wall Street took the hit, these last elements seeming to rule out the scenario of a moderation in rate hikes by the Federal Reserve during the coming months.
‘This means that the Fed will probably raise its rates at the end of the month’, underline the analysts of Commerzbank.
A sign of investor caution, the recent upward movement in bond yields continues after the employment statistics: the 10-year is now close to 4.05% to approach its annual highs.
As for values, Levi’s fell nearly 7% the day after the jeans manufacturer lowered its annual forecast.
Biogen fell 2% despite US FDA approval of Leqembi, the drug it is developing with Japan’s Eisai, for the treatment of Alzheimer’s disease.
Tesla fell 0.2% although Mizuho Securities raised its price target from $230 to $300, while maintaining its buy recommendation on the stock.
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