Stock Markets
S&P 500 rallies as jobs report surprises to upside, U.S. averts default
The S&P 500 surged Friday as the measure aimed at lifting the debt ceiling passed the final hurdle to put the U.S. on track to avoid a default, while a blowout jobs report also stoked bullish bets on stocks.
The S&P 500 was up 1.6%, the Dow Jones Industrial Average gained 2.2%, or 731 points, the Nasdaq gained 1.2%.
The U.S. economy created 339,000 new jobs in May, well above the 180,000 expected, though the unemployment rate rose more than expected to 3.7% and wage growth climbed less than expected.
Following the better-than-expected job gains in May, Morgan Stanley said they continued to “see the Fed on hold at the June meeting, and think the bar will be too high for the Fed to resume hiking.”
On Capitol Hill, meanwhile, a measure to lift the debt limit and cut government spending was passed in the Senate, a key final hurdle for the legislative measure, which now moves onto President Biden’s desk to be signed into law and averts an unprecedented default.
Energy stocks led the move higher for the second day in a row as oil prices gained on speculation that OPEC and its allies, or OPEC+, could announce a cut at its meeting in Vienna on Sunday.
“The decision to hold an in-person meeting in Vienna one month before everyone returns for the OPEC Seminar does raise the prospect that the group could decide to do a deeper cut to provide further support to the market as it continues to contend with broader macro concerns,” RBC said in a note.
Materials were also in the ascendency, driven by an 8% surge in Dupont De Nemours Inc (NYSE:DD) after the chemical company — together with Chemours Co (NYSE:CC) and Corteva Inc (NYSE:CTVA) — reached an agreement to settle allegations that they contaminated public water systems with toxic perfluoroalkyl and polyfluoroalkyl, substances (PFAS), or so-called forever chemicals.
Tech lagged the gains in the broader market, though remains set to end the week with strong gains following the AI-related surge in chip stocks this week including Nvidia (NASDAQ:NVDA).
Broadcom Inc (NASDAQ:AVGO) rose nearly 3% after reporting quarterly results that topped estimates, and saying that it expects more than a quarter of fiscal 2024 revenue to be driven by generative AI models such as ChatGPT.
Ahead of its developer conference that kicks off on Monday, Apple Inc (NASDAQ:AAPL) was slightly higher after Morgan Stanley hiked its price on the target to $190 from $185 on optimism that the tech giant will launch its new virtual reality headset that will boost growth.
“Our supply chain checks tell us Reality Pro general availability will likely come in the Dec ’23 quarter, and that builds will ramp from 300,000 to 500,000 in calendar 2023, to 3M to 4M by 2025,” it added.
Elsewhere on the earnings front, Lululemon Athletica (NASDAQ:LULU) lifted its guidance after reporting quarterly results that topped estimates, sending its shares up 12%.
SentinelOne Inc (NYSE:S) slumped 36% after the cybersecurity company cut its annual sales outlook after reporting quarterly revenue that fell short of Wall Street estimates amid a weaker macroeconomic backdrop.
Constellation Energy (NASDAQ:) Corp. is on the verge of acquiring Calpine Corp., a move that could mark one of the most significant transactions in the power generation industry, Bloomberg reported on Wednesday.
Baltimore-based Constellation is negotiating with Calpine’s private equity owners to finalize the terms of a deal that could place the value of Calpine at approximately $30 billion, including the assumption of debt, the report said, citing people familiar with the matter.
The potential acquisition, which could be announced within the next few weeks, is still subject to ongoing deliberations, report added.
Constellation’s interest in Calpine underscores the strategic moves within the power sector as companies seek to consolidate and expand their market presence.
While the exact terms of the deal are still being discussed, the acquisition’s completion would likely have considerable implications for both Constellation and the wider power generation sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
By John Irish and Alexander Ratz
PARIS/BERLIN (Reuters) -European Union sanctions in Syria that obstruct the delivery of humanitarian aid and hinder the country’s recovery could be lifted swiftly, France’s foreign minister said Wednesday.
The United States on Monday issued a sanctions exemption for transactions with governing institutions in Syria for six months after the end of Bashar al-Assad’s rule to try to ease the flow of humanitarian assistance.
Speaking to France Inter radio, Foreign Minister Jean-Noel Barrot said the EU could take a similar decision soon without giving precise timing, while adding that lifting more political sanctions would depend on how Syria’s new leadership handled the transition.
“There are other (sanctions), which today hinder access to humanitarian aid, which hinder the recovery of the country. These could be lifted quickly,” said Barrot, who met Syria’s de facto leader Ahmed al-Sharaa on Friday with Germany’s foreign minister.
“Finally, there are other sanctions, which we are discussing with our European partners, which could be lifted, but obviously depending on the pace at which our expectations for Syria regarding women and security are taken into account.”
Three European diplomats speaking on condition of anonymity said the EU would seek to agree to lift some sanctions by the time the bloc’s 27 foreign ministers meet in Brussels on Jan. 27.
Two of the diplomats said one aim was to facilitate financial transactions to allow funds to return to the country, ease air transport and lessen sanctions targeting the energy sector to improve power supplies. A third said Germany had put forward a position paper on the potential sanctions to be lifted.
“Due to the new situation, existing sanctions are under scrutiny. Germany has already pitched ideas on this issue,” German foreign ministry spokesperson Christian Wagner said on Wednesday.
“The focus lies on economic questions and return of funds of the Syrian diaspora,” he said.
Syria suffers from severe power shortages, with state-supplied electricity available two or three hours per day in most areas. The caretaker government says it aims to provide electricity for up to eight hours per day within two months.
The U.S. waivers allow some energy transactions and personal remittances to Syria until July 7, but do not remove any sanctions.
WASHINGTON (Reuters) – U.S. Treasury Secretary Janet Yellen said on Wednesday that Nippon Steel’s blocked acquisition of U.S. Steel received a “thorough analysis” by an interagency national security review body that was sent to President Joe Biden.
Yellen, in a live interview on CNBC, said she could not discuss specifics of the review of the merger blocked by Biden last week that is now the subject of a lawsuit that alleges that the review by the Committee on Foreign Investment in the United States (CFIUS) was not conducted in good faith and was prejudiced by Biden.
“I think, as you know, there is ongoing litigation over this case, and as head of CFIUS, I regret there is very little substantive that I can say to you about this,” Yellen said. “Other than that, CFIUS did analyze the specifics, as it always does of this situation, and prepared a thorough analysis to go to the president.”
Forex2 years agoForex Today: the dollar is gaining strength amid gloomy sentiment at the start of the Fed’s week
- Forex2 years ago
How is the Australian dollar doing today?
- Forex2 years ago
Unbiased review of Pocket Option broker
- Forex2 years ago
Dollar to pound sterling exchange rate today: Pound plummeted to its lowest since 1985
- Cryptocurrency2 years ago
What happened in the crypto market – current events today
- World2 years ago
Why are modern video games an art form?
- Commodities2 years ago
Copper continues to fall in price on expectations of lower demand in China
- Forex2 years ago
The dollar is down again against major world currencies
