Wall Street Today | Fed's Goolsbee: ‘Golden Path' Includes a Couple of Rate Hikes
MACRO
Wage Gains, Low Unemployment Keep Pressure on Fed; Hiring Cooled in June
Hiring slowed in June but wages rose and unemployment fell, likely keeping the Federal Reserve on track to raise interest rates later this month to combat inflation.
U.S. employers added 209,000 workers in June, a solid monthly gain but down from May’s revised 306,000.
The unemployment rate fell to 3.6% last month from 3.7% in May. Employers ramped up wages as they competed for a limited pool of workers. Average hourly earnings grew 4.4% in June from a year earlier, matching gains in the preceding two months and remaining well above the prepandemic pace.
Bond Market Gets Limited Relief as Yields Reach 2023 Highs
Bond investors got limited relief from June employment data showing a slowdown in job creation, as robust wage growth helped send 10- and 30-year Treasury yields to their highest levels of the year.
There’s been “dip-buying into the weekend after the policy implications of the data were absorbed,” said Ian Lyngen, head of rate strategy at BMO Capital Markets. “There are some chunky flows going through.”
Fed's Goolsbee: ‘Golden Path' Includes a Couple of Rate Hikes
Chicago Federal Reserve Bank president Austan Goolsbee on Friday said he does not disagree with his fellow US central bankers that rates will need to rise a couple more times this year to beat back too-high inflation.
"I haven't seen anything that says that's wrong - that is on the golden path" of bringing inflation down to 2% without causing a recession, Goolsbee said in an interview on CNBC. "That would be a Fed triumph and that can involve a couple of rate increases over this year."
SECTORS
Oil Market Flashes Signs of Strength as OPEC+ Cuts Take Hold
The oil market is finally starting to show signs of tightening, a relief for traders who have grappled with fading optimism around concerns over the global demand outlook.
Swaps contracts tied to physical supplies have been rallying, while in options markets, the premium of bearish puts over bullish calls has narrowed. Prompt spreads for benchmark futures have also climbed out of a contango structure that reflects oversupply, as trading of real-world oil shows some strength.
EV Sales Growth in First Half Slowed From Torrid Pace
Electric-vehicle sales in the U.S. surged by 50% in the first half of the year, although the pace of growth slowed amid a buildup of unsold EV inventory at dealerships.
For the first half of 2023, automakers sold 557,330 electric vehicles with the growth rate far eclipsing that of conventional cars, according to data released Thursday by research firm Motor Intelligence. Sales of internal-combustion-engine vehicles grew about 10% in the period.
COMPANY
Meta's Threads Has Hit 70 Million Signups, Mark Zuckerberg Says
Zuckerberg's $Meta Platforms (META.US)$ is looking to take on Elon Musk's Twitter with the launch of Threads platform.
"70 million sign ups on Threads as of this morning," Zuckerberg posted on Threads Friday. "Way beyond our expectations."
On Friday afternoon, Quiver Quantitative estimated there are now over 73 million Threads users. Quiver Quantitative's numbers were generated using the Threads account numbers shown on Instagram pages.
Rivian's Stock Set to Match Record Win Streak After Wedbush Boosts Price Target by 20%
Shares of $Rivian Automotive (RIVN.US)$ rallied Friday toward an eighth straight gain after Wedbush analyst Dan Ives boosted his share-price target by 20%, saying he believes the electric-vehicle maker is "finally making a major turn" toward its longer-term business model.
Ives reiterated the outperform rating he's had on the stock since it went public, while raising his price target to $30 from $25.
Alibaba Shares Rise on Report China Probe of Ant Will End With Fine
U.S.-listed shares of $Alibaba (BABA.US)$ climbed in Friday's trading after a report that a long-running investigation into Ant Group will end with a penalty of at least 8 billion yuan ($1.1 billion).
Source: Bloomberg, Dow Jones, CNBC
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102856065 : Hi
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