Dow climbs in early Friday action as Wall Street attempts to cap tumultuous trading week with an upswing


Stock benchmarks on Friday rose modestly higher as investors looked to close out a volatile, holiday-shortened week that has the tech-heavy Nasdaq Composite on track for its biggest weekly loss since the height of the pandemic-induced market selloff in March.

How are major benchmarks trading?

The Dow Jones Industrial Average
DJIA,
+0.19%

rose 117 points, or 0.4%, to around 27,650, while the S&P 500
SPX,
+0.07%

gained 14 points, or 0.4%, to trade at 3,353. The Nasdaq Composite Index
COMP,
-0.09%

climbed 48 points, or 0.5%, at 10,952. But all three benchmarks were trading off their intraday peak near the open, highlighting the week’s choppy action.

The Dow on Thursday fell 405.89 points, or 1.5%, to close at 27,534.58, while the S&P 500 ended with a loss of 59.77 points, or 1.8%, at 3,339.19. The Nasdaq Composite fell 221.97 points, or 2%, to finish at 10,919.59. Through Thursday, the Dow was down 2.1% for the week, while the S&P 500 was off 2.6% and the Nasdaq was 3.5% lower; markets were closed Monday for Labor Day.

What’s driving the market?

A decline in the S&P 500 index for the week would mark the benchmark’s first back-to-back weekly drop since May.

“While monetary policy is set to remain supportive for several more quarters, valuations are high across assets and volatility is resurfacing,” said Elia Lattuga, co-head of strategy research at UniCredit Bank, in a note. “The breadth of the rally is still limited and the recovery uneven—hence developments in the economic outlook and political risks represent significant threats to risk appetite.”

Stocks were unable to follow through Thursday on a Wednesday bounce that saw equities recover somewhat from a three-day, tech-led rout that pushed the Nasdaq into correction territory, falling more than 10% from its record close set last week.

Weakness on Thursday was partly tied to the inability of U.S. politicians to agree on a new coronavirus rescue package after Democrats blocked a Republican bill on the Senate floor, leaving the way forward unclear, analysts said.

Meanwhile, investors have fretted that the sharp rally that took stocks from their March pandemic lows to new all-time highs had left valuations significantly stretched for the large-cap, tech-related stocks that had led the rally this year. Among those highfliers, shares of Apple Inc.
AAPL,
-0.85%

 and Netflix Inc.
NFLX,
+1.22%

 were on track for weekly declines of more than 6%, while Facebook Inc.
FB,
-0.57%

 is off more than 5%.

In U.S. economic news, the consumer-price index for August rose 0.4% last month, beating average economists’ estimates for a rise of 0.3% but falling below the past two months at 0.6%. On a year-over-year basis, the CPI increased 1.3% after gaining 1.0% in July, the Labor Department said on Friday

Looking ahead, Federal budget figures for August are due at 2 p.m. Eastern.

Which companies are in focus?
What are other markets doing?

The yield on the 10-year Treasury note
TMUBMUSD10Y,
0.675%

 rose 0.4 basis point to 0.687%. Bond prices move inversely to yields.

The ICE U.S. Dollar Index
DXY,
-0.12%
,
which tracks the performance of the greenback against its major rivals, fell 0.1%.

Gold futures
GCZ20,
-0.08%

were off 0.3% at $1,958 an ounce, threatening to snap a three-day winning streak. The U.S. crude oil benchmark
CL.1,
-0.10%

 fell 16 cents, or 0.5%, to $37.13 a barrel.

The Stoxx Europe 600 index
SXXP,
-0.11%

 was edging 0.1% lower, while the U.K.’s benchmark FTSE
UKX,
-0.26%

rose 0.2%. In Asia, Hong Kong’s Hang Seng Index
HSI,
+0.78%

and the Shanghai Composite Index
SHCOMP,
+0.78%

 both rose 0.8%, while Japan’s Nikkei
NIK,
+0.73%

rose 0.7%.



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Don’t Be Surprised By A Weak Jobs Report On Friday


As we await Friday’s jobs report, let’s take a look at where we are so far in the employment recovery, starting with macro-level employment data from the Bureau of Labor Statistics: Click for a larger image.

In April, the economy lost 20,787,000 jobs. 47% were in two areas: retail (which lost 2,299,000) and leisure (which lost 7,575,000). Both of these sectors are “consumer-facing” — meaning they deal directly with the public.

Here are charts of the data:Retail employment has made up about 50% of its losses.Leisure and hospitality employment has dropped a bit more.

In May and June, the economy added 7,499,000 jobs. 61% of these gains were in retail (1,111,000) and leisure/hospitality (3,491,000).

Since the beginning of July, we’ve seen a number of states reverse their respective reopenings as COVID cases climbed. A key to many of these plans is a partial shutting down of restaurants. Add to that an increasingly large number of retail bankruptcies. Today alone Lord & Taylor and Men’s Wearhouse announced the filing of Chapter 11 proceedings. The Washington Post (subscription required) has compiled a list of 13 retail bankruptcies (which include today’s additions). These companies will be closing stores, lowering the number of retail jobs available.

Let’s add several more data points to the above data.Initial unemployment claims (in blue) and its 4-week moving average (in red) are still being reported at over 1,000,000/week. These are the highest levels ever in this data.

The current unemployment situation is very much falling on those with less educational achievement. The unemployment rate for high school graduates with no college is 12.1% (blue); for those with some college (red), the rate is 10.9%. These people will have a harder time finding jobs in the current economy as their usual sources of employment (retail and leisure) are themselves seeing a difficult environment.

The good news is there’s been a rebound in the jobs market. The bad news is that this “recovery” may be weakening as states reimpose social distancing protocols. In addition, the Spring lockdown accelerated losses in the retail sector, which was losing its battle with online retailing. Putting this all together, we have a precarious job recovery that could see a slowdown or an unwanted reversal in Friday’s jobs report.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.





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TGIF Is the Ticker for a New Bond ETF Touting Friday Payouts By Bloomberg


© Reuters. TGIF Is the Ticker for a New Bond ETF Touting Friday Payouts

(Bloomberg) — Investors looking for more frequent bond payouts may soon have the option to buy an exchange-traded fund that will distribute cash every Friday.

The SoFi Weekly Income ETF will trade under the ticker TGIF and focus on investment-grade and high-yield corporate bonds, according to a filing with the Securities and Exchange Commission. The fund will be actively managed and primarily hold securities maturing in less than three years.

The Friday payouts could be an attempt to attract older investors looking for more frequent income payments, according to Eric Balchunas, a Bloomberg Intelligence ETF analyst. Most bond ETFs have monthly distributions, he said.

TGIF’s debut would also add further momentum to one of the hottest trends in the ETF market. Actively managed ETF launches are outpacing passive for the first time in 20 years. As of Thursday, 68 active exchange-traded funds had started trading in 2020, compared with 63 passive ones, according to data compiled by Bloomberg.

©2020 Bloomberg L.P.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

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.





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Is the stock market closed Friday? For 4th of July, here’s everything investors need to know about trading hours and closures


Independence Day falls on Saturday this year, meaning that U.S. financial markets will be closed on Friday.

The New York Stock Exchange and Nasdaq will be shuttered at the conclusion of regular trade Thursday, while the bond market will close an hour early, at 2 p.m. Eastern on Thursday, and will remain closed over the Fourth of July holiday, per the recommendation of the Securities Industry and Financial Markets Association, a brokerage-industry trade group that sets procedures for trading in bonds like the 10-year Treasury note
TMUBMUSD10Y,
0.673%
.

Trading for U.S. oil
CL.1,
+1.45%

on the New York Mercantile Exchange and
GC.1,
+0.50%

on Comex also will be closed for settlements on Friday.

The holiday this year may carry a unique significance to markets and an economy that have been rocked by a pandemic that has claimed the lives of more than a half-million people worldwide and infected 10.5 million thus far. The deadly coronavirus outbreak has provided the backdrop for the eruption of civil unrest in the U.S. following the killing of George Floyd on May 25 by a Minneapolis police officer.

Calls for social justice ensued for Floyd and others, and this Independence Day may, for some, provide a time of somber reflection if not celebration.

On July 2, 1776, the Continental Congress voted in favor of independence against Britain, and two days later delegates from the 13 colonies finalized the Declaration of Independence.

The Fourth of July was enshrined as a federal holiday by Congress on June 28, 1870. However, independence for many Americans, whose efforts under bondage would eventually make the nation a superpower, wasn’t achieved until the Emancipation Proclamation in 1863, marking the end of slavery. Even then, it wasn’t until June 19, 1865 that most American slaves learned of the proclamation; and then a century later before other hard-fought liberties were obtained by Black Americans.

Read: Macy’s launches ‘unannounced’ July 4th fireworks this week — but who’s behind the surprise fireworks boom across the country?

Back in 1776, the euphoria for freedom and change from under the tyranny of Britain compelled civilians in lower Manhattan to tear down a statue of King George III. Similarly, in scenes repeated across the U.S., citizens protesting racial injustice have been leveling statues with ties to racism and white supremacy.

Last month, protesters tore down a bust of Ulysses Grant and “Star-Spangled Banner” writer Francis Scott Key, because they owned slaves at points during their lives. Protesters have also, at times, targeted Founding Fathers such as Thomas Jefferson, one of the key signatories of the Declaration of Independence, who owned slaves.

So far, the business community has seen an outpouring of support for social justice from a number of corporations, but it is unclear how this groundswell, along with the effects of the virus, will shape the future.

For its part, the stock market has been trying to power through the numerous issues that have cropped up in an unusually turbulent period in history.

The Dow Jones Industrial Average
DJIA,
+1.07%

and the S&P 500 index
SPX,
+1.10%

have gained nearly 40% since touching a late-March low as the COVID-19 pandemic roiled investor confidence, and the Nasdaq Composite
COMP,
+1.13%

has gained nearly 50% over the same period.

Early efforts to restart business activity have been uneven and been met by reversals of social-distancing restrictions in a number of Southern and Western U.S. states, including Florida, Texas and California. Still, trillions of dollars in aid from the Federal Reserve and the U.S. government have helped to embolden buyers of assets considered risky on Wall Street.



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Major U.S. airline CEOs to hold White House meeting Friday: sources By Reuters


3/3
© Reuters. FILE PHOTO: American Airlines passenger planes crowd a runway where they are parked due to flight reductions to slow the spread of coronavirus disease (COVID-19), at Tulsa International Airport in Tulsa

2/3

By David Shepardson and Tracy Rucinski

WASHINGTON/CHICAGO (Reuters) – The chief executives of major U.S. airlines are set to hold a meeting Friday to discuss a range of coronavirus-related travel issues including the industry’s push to convince the federal government to mandate temperature checks for passengers, three people briefed on the matter said.

The meeting with Vice President Mike Pence and other senior U.S. officials is expected to include the CEOs of American Airlines (O:), Delta Air Lines (N:), Southwest Airlines (N:), United Airlines (O:) and JetBlue Airways Corp (O:), the sources said.

The discussions will also include potential extended European Union travel restrictions on U.S. travelers, contract tracing of passengers and the impact of COVID-19 on travel demand, among other issues, the sources said.

Airlines and the White House declined to comment on the meeting.

U.S. airlines are pushing the Trump administration to require temperature checks for passengers in a bid to reassure customers about the safety of travel in the face of the COVID-19 pandemic.

Airlines for America, which represents the largest U.S. airlines, said on Thursday its members voluntarily pledged to refund tickets for passengers with high temperatures during federal screenings.

Reuters reported May 9 the U.S. government has been studying imposing temperature checks at airports, but two U.S. officials said on Thursday no decision has been made – and the government still has not decided what agency would conduct tests.

Many believe the Transportation Security Administration (TSA) would conduct tests, but questions remain including whether passengers with high fevers would be reported to public health authorities.

“Nobody wants to be the person that tells a flying, paying customer they can’t fly that day,” United Executive Chairman Oscar Munoz said during a video conference Thursday.

U.S. officials said temperature checks would not eliminate coronavirus risks but could deter unwell people from traveling.

Earlier this month, Reuters reported the White House wants a plan in place by Sept. 1 for airlines to collect contact tracing information from U.S.-bound international passengers after convening a high-level White House meeting.

The White House tasked a interagency working group with adopting an interim solution by June 30 and ahead of any potential coronavirus second wave.

In February, the Centers for Disease Control (CDC) issued an interim final rule to require airlines to collect five contact data elements from international passengers and electronically submit them to Customs and Border Protection to facilitate contact tracing.

In the face of airline opposition the CDC plan has not taken effect.

Airlines for America said earlier this month airlines “strongly support a contract tracing solution that will provide the most secure data to the U.S. government in a timely and efficient manner.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

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.





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