Markets Begin Week Mixed on Same Uncertainties…..
U.S. equities were mixed, as another upbeat read on employment was met with the uncertainty surrounding the elusive deal for a next wave of fiscal relief measures, as well as the persistent rise in COVID-19 cases globally. However, President Donald Trump signed executive actions aimed at offering some backing, giving stocks some additional support. Treasury yields were mostly higher as bond prices nudged lower, and the U.S. dollar was slightly higher, while crude oil prices rose and gold fell. In equity news, Marriott International missed quarterly expectations but offered upbeat commentary on current activity, Barrick Gold topped earnings forecasts, and MGM Resorts received a significant investment from IAC/Interactive. Markets in Europe and Asia closed higher.
The Dow Jones Industrial Average rose 358 points (1.3%) to 27,791, the S&P 500 Index increased 9 points (0.3%) to 3,360, while the Nasdaq Composite declined 43 points (0.4%) to 10,968. In moderate volume, 864 million shares were traded on the NYSE and 3.9 billion shares changed hands on the NASDAQ. WTI crude gained $0.72 to $41.94 per barrel and wholesale gasoline added $0.02 to $1.23 per gallon. Elsewhere, the Bloomberg gold spot price fell $10.87 to $2,024.68 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—was 0.2% higher at 93.59.
Job openings rise more than expected to kick off economic week…..
The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS), a measure of unmet demand for labor, showed 5.9 million jobs were available to be filled in June, after May’s downwardly-revised 5.4 million figure and compared to the Bloomberg forecast calling for 5.3 million openings. The report showed the hiring rate fell to 4.9% from May’s 5.4% rate and separations rose to 3.5% from 3.2%.
Treasuries were mostly lower, as the yield on the 2-year note was unchanged at 0.13%, while the yield on the 10-year note gained 2 basis points (bps) to 0.58%, and the 30-year bond rate was 3 bps higher at 1.26%.
©2020 Charles Schwab & Co., Inc. All rights reserved. Member SIPC.
Schwab Center for Financial Research (“SCFR”) is a division of Charles Schwab & Co., Inc. The information contained herein is obtained from third-party sources and believed to be reliable, but its accuracy or completeness is not guaranteed. This report is for informational purposes only and is not a solicitation, or a recommendation that any particular investor should purchase or sell any particular security. The investment information mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinions are subject to change without notice in reaction to shifting market conditions.