![]() ![]() That's its second losing week in the last eight. Higher yields helped pull the S&P 500 to a loss of 1.2% for the week. wholesale business remains under pressure.Ĭostco Wholesale fell 2.3% after reporting its growth in sales slowed in June from May. It cut its forecasted range for earnings for the full year, as its U.S. On the losing side of Wall Street was Levi Strauss, which tumbled 7.7% despite reporting slightly stronger profit for the latest quarter than analysts expected. The Russell 2000 index of smaller stocks rose 1.2%. economy than big multinational companies, smaller stocks are also viewed as more dependent on lower interest rates. Not only do investors see them as moving more closely with the strength of the U.S. Stocks of smaller companies also rose more than the rest of the market. It's building factories and other expansions, and First Solar shares gained 3.3%. The higher crude prices also helped stocks of solar companies, which got an added boost after First Solar announced a $1 billion credit facility from a group of banks. ![]() Oilfield services provider Schlumberger jumped 8.6%, Halliburton climbed 7.8% and Marathon Oil rose 4.3%. Stocks in the energy industry were among Wall Street's strongest Friday as the price of oil rallied. High rates have also caused pain in other areas of the economy, from manufacturing to housing. banking system that rattled confidence across financial markets. Yields are already around their highest levels since March, which was when high rates helped trigger three failures in the U.S. While workers would rather have the 4.4% gain in average hourly earnings from a year earlier than the 4.2% that was predicted, Wall Street's fear is the Fed will see too-strong wage growth as keeping upward pressure on inflation. Wage growth held steady last month, instead of slowing as economists expected, for example. Some concerning signals for inflation were also still embedded in the report. The two-year yield, which moves more on expectations for the Fed, fell to 4.94% from 5.00%. It helps set rates for mortgages and other important loans. The 10-year Treasury yield rose to 4.05% from 4.03% late Thursday. Treasury yields were mixed following the much anticipated jobs data. The wide assumption on Wall Street is the Fed will hike rates at its next meeting in three weeks. That could keep the Federal Reserve on the course it’s been hinting at recently: perhaps two more increases this year before the Fed holds rates at a high level to ensure inflation returns to its 2% target. “The job market is healthy, for now, but it’s not red hot,” he said. More people are working part-time because their hours have been cut, for example, said Brian Jacobsen, chief economist at Annex Wealth Management. hiring could be much stronger than expected.īesides the slowdown in overall hiring, some numbers underneath the report's surface also showed some loosening in the job market. That’s unlike a report from Thursday, which sent stocks dropping after it suggested U.S. Perhaps more importantly, it wasn’t far off economists’ expectations. employers added 209,000 jobs last month, a slowdown from May’s hiring of 306,000. But it can’t grow so quickly that the Fed feels pressure to brake much harder on the economy to prevent inflation from spiraling higher.įriday’s report showed U.S. It needs to keep growing despite much higher interest rates instituted by the Federal Reserve to bring down inflation. The Dow Jones Industrial Average gave up 187.38, or 0.6%, to 33,734.88, and the Nasdaq composite edged down by 18.33, or 0.1%, to 13,660.72.Ī lot is riding on whether the economy can navigate the narrow pathway to avoid a long-predicted recession. The S&P 500 lost 12.64 points, or 0.3%, to 4,398.95, though slightly more stocks within the index rose than fell. ![]() job market is still warm enough to keep the economy growing but maybe not so hot that it stokes inflation much higher. NEW YORK (AP) - Wall Street drifted to a mixed finish Friday after data suggested the U.S. ![]()
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