Wall Street Today | US Labor Market Sends Mixed Signals, Giving Fed Reason to Pause

Moomoo Recap US wrote a column · Jun 2, 2023 15:07

MACRO

US Labor Market Sends Mixed Signals, Giving Fed Reason to Pause

Nonfarm payrolls increased 339,000 last month after an upwardly revised 294,000 advance in April, a Bureau of Labor Statistics report showed Friday. The unemployment rate rose to 3.7%, while wage growth slowed.

Source: Bloomberg

For the Fed, however, policymakers will also be looking at the surge in the unemployment rate, which was the biggest one-month increase since April 2020. There were 440,000 more people out of a job in May, also the largest monthly rise since the onset of the pandemic.

Even though labor demand has remained resilient, it’s unclear how long that will last. With a credit crunch threatening to halt the expansion and more companies planning to let workers go, hiring and pay gains may slow substantially in the coming months.

S&P 500 Nears Bear-Market Exit

A broad stock-market rally Friday has the S&P 500 on the verge of exiting its longest bear-market run since 1948. Investors want to know if the move is for real or merely a fake out.

Wall Street's 'Fear Gauge' Hits Lowest Level Since 2021

The stock market's measure of volatility is falling to levels not seen since in nearly two years. The Cboe Volatility Index, or VIX, tracks the price of options often used as insurance against market declines.

SECTORS

OPEC+ Gathers to Make Choice Between Patience and Preemption

OPEC+ gathered in Vienna to decide whether to give their existing production cuts more time to take effect, or take further preemptive action to boost prices.

The group’s decision was further complicated by the fact that oil prices rose for a second day amid greater economic optimism, a reversal of the trend seen in late May.

Telecom Stocks Drop After Report That Amazon Might Offer Mobile Service

$Amazon(AMZN.US)$ is reportedly looking into entering mobile phone service, and telecom investors are feeling the pain.

Bloomberg News reported Friday that the retailing giant has been talking with wireless carriers about offering low-cost or free mobile to Prime subscribers. Holders of traditional telecom stocks clearly don't like the sound of that.

COMPANY

Everything Apple Plans to Show at WWDC: XR Headset, iOS 17 and More

$Apple(AAPL.US)$‘s most significant product launch event in nearly a decade kicks off Monday, when the company will introduce its first major new product category since the Apple Watch alongside multiple new Macs and software upgrades across its platforms.

Exxon, Chevron Near Deals to Drill in Gas-Rich Algeria

$Exxon Mobil(XOM.US)$ and $Chevron(CVX.US)$ are in advanced negotiations with Algeria on a deal that would allow the U.S. energy giants to drill for the first time in the gas-rich North African nation, according to the Algerian energy minister and people familiar with the discussions.

Nvidia Is Still a ‘Buy' to Wall Street Analysts

Analysts have raced to boost their price targets on the chip maker’s stock after the company’s market value gained $650 billion since October.

Source: Bloomberg, Dow Jones, CNBC

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