Stock Market Today: S&P 500 Holds Near Record as Jobs Data Released

Live4 updates

• Fri, Jul 5, 2024 10:15 AM EDT

  Stock market trends in morning trading

  Here are some of the top stocks on Yahoo Finance’s trending tickers page during Friday morning trading.

  You’re here (TSLA): Tesla shares retreated after investors bid up the electric-vehicle maker nearly 25% last week after the company reported vehicle deliveries that beat Wall Street expectations. More broadly, investors are counting on a positive quarterly report later this month and the launch of the robotaxi in early August, which analysts are optimistic will be the next step in Tesla’s story. Shares fell less than 1% in morning trading.

  Coinbase (PIECE OF MONEY): The cryptocurrency market is reeling, and it’s taking crypto companies down with it. Cryptocurrency exchanges fell 5%, mirroring the price drop for Bitcoin (BTC-USD), the most popular and largest cryptocurrency by market cap. Bitcoin fell to its lowest level against the dollar since February. Cryptocurrency miner Marathon (MARA) fell 7%, and online broker Robinhood (HOOD) fell 4%.

  Macy’s (M): Shares of the struggling department store chain jumped nearly 10% Friday morning after news broke that a group of investors had made a second offer to buy it. The latest bid is $300 million higher than the previous one.

  Samsung Electronics (005930.KS): The manufacturing conglomerate gained 3% Friday morning after the company reported that its quarterly profit jumped to 15 times its size a year ago, pushing the stock to a three-year high, boosted by the AI ​​boom.

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  Fri, Jul 5, 2024 9:33am ET

  Stocks remain stable despite rising unemployment rate

  U.S. stocks held near all-time highs on Friday as investors analyzed how the June jobs report, which showed a slightly higher unemployment rate, will influence the Federal Reserve’s interest rate decision.

  The S&P 500 Index (GSPC) was little changed after the report. The Dow Jones Industrial Average (DJI) fell below the flat line, while the tech-heavy Nasdaq Composite (IXIC) hovered above it. Friday’s trading session continued Wednesday’s action, as all three indicators were closed Thursday for the July 4 holiday.

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  Fri. Jul 5, 2024 at 8:59 AM ET

  Pressure mounts for Fed to act

  There is no doubt what Friday’s jobs report will reveal: The Federal Reserve is likely to find itself behind the curve.

  This means the central bank could end up cutting rates too late, just as many believe it was too slow to raise interest rates in 2022.

  With the unemployment rate now at its highest level since November 2021, other data—such as rising jobless claims and falling job openings—are starting to look like they are sending a clear signal that job gains have overstated the strength of the labor market.

  Inflation data continues to slow toward the Fed’s 2% target, although that progress appears to have stalled in the first few months of the year.

  The Fed’s sensitivity to inflation above its target after the 40-year peak in price increases in 2022 has been the defining feature of this monetary policy regime. But the labor market is beginning to speak louder and clearer: Things are getting tough for more workers.

  Neil Dutta of Renaissance Macro has become the leading voice on Wall Street arguing that the Fed needs to be more aggressive in cutting rates this fall. In a note released minutes after Friday’s report, he said: “Today’s jobs report should reinforce expectations for a September rate cut. Economic conditions are cooling and that makes the tradeoffs for the Fed different.”

  Dutta said the Fed’s July meeting should set the stage for a September cut.

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  Fri. Jul 5, 2024 at 8:54 AM ET

  Job creation is up, but unemployment rate hits highest level since 2021

  The U.S. labor market added more jobs than expected in June, while the unemployment rate unexpectedly rose to its highest level since November 2021, another sign that the labor market continues to cool.

  Data from the Bureau of Labor Statistics released Friday showed the U.S. economy added 206,000 nonfarm payrolls in June, more than the 190,000 economists had expected.

  The unemployment rate rose to 4.1% from 4% the previous month and is the highest level in nearly three years. Job gains in June fell slightly from May, which saw job creation revised down Friday to 218,000 from 272,000 initially reported last month.

  Stock futures rose after the report, adding to gains after the market hit record highs earlier this week amid a string of weaker-than-expected economic data, including inflation readings that show the U.S. is once again heading toward a “disinflationary path,” according to Federal Reserve Chairman Jerome Powell.