Jobless Claims Take a Dive, Interest Rates Hang in Suspense: The Unemployment Rollercoaster
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Jobless claims took a nosedive by 12,000, landing at a cozy 237,000 for the week ending July 8. Talk about a pleasant surprise for economists who were expecting a slightly less impressive 248,000. Looks like the numbers have a mind of their own!
The four-week moving average slinked down by 6,750 to 246,750, painting a rather rosy picture of the labor market. And just when you thought the show was over, continuing claims decided to join the party, ascending to 1.729 million. Economists were all like, “Yeah, that’s pretty much what we expected,” with their predictions sitting at 1.728 million.
Now, let’s shift gears and talk about the elephant in the room: the monthly payrolls report. Apparently, the US managed to squeeze in a mere 209,000 jobs in June, marking a definite slowdown from the previous month. It seems like Uncle Sam needs to put in a bit more effort to keep up the job-creation game.
And speaking of games, let’s talk about the Federal Reserve’s favorite pastime: battling inflation. With wages and the labor market in the spotlight, the central bank’s Chairman, Jerome Powell, has his hands full. Rumor has it that he’s eyeing another interest rate hike to tackle the historically high levels of inflation. According to the CME FedWatch Tool, a whopping 92.4% of traders are eagerly awaiting this suspenseful move at the Fed’s upcoming meeting. Brace yourselves, folks, we’re in for a wild ride!
PepsiCo, Walt Disney, Delta rise premarket; Carvana, Coinbase SoFi fall
U.S. futures traded higher Thursday, continuing the recent positive sentiment ahead of the latest data on producer prices, with investors looking for more clues guiding future Federal Reserve monetary policy.
Here are some of the biggest premarket U.S. stock movers today:
- PepsiCo (NASDAQ:PEP) stock rose 2.3% after the beverages giant raised its full-year forecast, following a strong performance in the second quarter even as higher prices hit demand.
- Delta Air Lines (NYSE:DAL) stock rose 4.4% after the carrier reported its best-ever quarterly revenue and earnings on the back of a sharp post-pandemic rebound in travel demand.
- Walt Disney (NYSE:DIS) stock rose 1.4% after the entertainment giant extended Chief Executive Officer Robert Iger’s contract by two years to maintain “continuity of leadership during the company’s ongoing transformation.”
- Coinbase (NASDAQ:COIN) stock fell 1.2% after Barclays downgraded its stance on the cryptocurrency exchange to ‘underweight’ from ‘equal-weight’, saying investors should get out before its earnings report.
- Carvana (NYSE:CVNA) stock fell 5.8% after JPMorgan cut its rating on the online used car retailer to ‘underweight’ from ‘neutral’, saying the stock can slump 70% after the sharp gains earlier this year.
- SoFi Technologies (NASDAQ:SOFI) stock fell 3.7% after Morgan Stanley downgraded the online personal finance company to ‘underweight’ from ‘equal-weight’, saying the stock should be valued like a bank.
- AstraZeneca (NASDAQ:AZN) ADRs rose 1.2% after UBS upgraded its stance on the pharma giant to ‘buy’ from ‘neutral’, saying its hefty drug pipeline makes it “a leading player in the field.”
Some of the biggest movers:
Eduardo Acuna takes the helm at Cineworld Group to keep bankruptcy at bay
Cineworld Group has announced that Eduardo Acuna, the man running things over at Mexican theatre operator Cinepolis in the Americas, will be taking the reins as CEO once the company emerges from its bankruptcy proceedings.
Apparently, lenders have given the move the thumbs up and the newly formed parent company is expected to come into play sometime this month. The news caused a bit of a stir, with shares in London-listed Cineworld trading up 11% at 0.4 pence by 1145 GMT. But let’s be real, they still have a long way to go to regain that 99% of their value that went up in smoke back in 2017. Time to start selling more popcorn with gold flakes in it.
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Sure, their profit margins are a bit lower than their peers, but higher revenue and net income speak for themselves. So if you’re looking for a fruitful investment option, maybe it’s time to give these guys a second look.
Investing is like a game of chess. You need to plan ahead, make strategic moves, and be ready for the unexpected. But unlike chess, you don’t need to wear a silly hat to be smart at investing (although it might help your creativity levels).
The key to success in investing is to stay ahead of the game. Keeping up with market trends, financial news, and investment opportunities means you’ll be ready to pounce on the next big thing before everyone else has even heard of it.
But don’t just follow the herd blindly. Smart investing means doing your research, knowing your risk tolerance, and being patient enough to wait for the right moment to strike.
So, if you want to be a champion investor, remember to stay sharp, stay informed, and maybe invest in a good luck charm (just in case).