S&P 500 stays near record high on jobs data

Live7 updates

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  Fri, Jul 5, 2024 12:38 PM ET

  Stocks advance in afternoon trading

  Stocks were broadly higher Friday afternoon, following a June jobs report that could prompt the Federal Reserve to cut interest rates as early as September.

  The S&P 500 (GSPC) gained 0.3% after posting a record closing high in a shortened session on Wednesday. The Dow Jones Industrial Average (DJI) fell 0.2%, while the tech-heavy Nasdaq Composite (IXIC) gained 0.8%, led by gains in tech giants.

• Fri. Jul 5, 2024 at 11:45 AM ET

  Epic Games says Apple delayed launch of its games store in Europe

  Epic Games, the maker of the popular video game “Fortnite,” said Apple (AAPL) rejected its proposals to launch a game store in Europe, blocking its efforts.

  In response, the game publisher said it had raised its concerns with the European Commission, escalating a long-running dispute between the two companies over whether consumers should be allowed to directly access purchases outside of Apple's App Store.

  In a series of posts on X FridayEpic Games said Apple objected to the design, placement and labeling of certain digital buttons in submission materials for its mobile store. Epic maintains that it has used the same naming conventions in app stores on other platforms and that it follows standard conventions for buttons in iOS apps.

  “Apple’s rejection is arbitrary, obstructive and in violation of the DMA, and we have raised our concerns with the European Commission,” Epic said in the posts.

  Last month, EU regulators brought their first charges against Apple under a new digital competition law, alleging that Apple prevented app developers from steering customers to more affordable options outside its App Store.

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  Fri. July 5, 2024 at 11:00 AM ET

  Tesla continues its winning streak

  Shares of Tesla (TSLA) rose as much as 1.1% in morning trading Friday, helping the company extend its longest winning streak in more than a year.

  After rising 30% over the past seven sessions and surging nearly 40% over the past month, the stock is nearing breakeven for 2024 after falling as much as 40% year-to-date as of mid-April, Yahoo Finance reports. Ines FerrThe gains far outpace the S&P 500's modest 3.5% rise over the past month.

  Tesla's extended rally comes as the automaker beat its quarterly deliveries earlier this week.

  In addition to these production and delivery results, Tesla Bulls also highlighted the company's fastest-growing segment: its energy storage business.

  Tesla will report its quarterly results on July 23 after the market closes. Analysts are also looking forward to August 8, when the company will unveil its highly anticipated robotaxi.

• Fri, Jul 5, 2024 10:15 AM EDT

  Stock market trends in morning trading

  Here are some of the top stocks trending on the Yahoo Finance ticker page during Friday morning trading.

  You're here (TSLA): Tesla shares retreated after investors bid up the electric-vehicle maker nearly 25% last week after the company reported vehicle deliveries that beat Wall Street expectations. More broadly, investors are counting on a positive quarterly report later this month and the launch of a robotaxi in early August that analysts are optimistic will be the next step in Tesla's story. Shares fell less than 1% in morning trading.

  Coinbase (PIECE OF MONEY): The cryptocurrency market is struggling, and it’s dragging its affiliates down with it. The digital asset exchange fell 5%, mirroring the price drop for bitcoin (BTC-USD), the most popular and largest cryptocurrency by market cap. Bitcoin fell to its lowest level against the dollar since February. Cryptocurrency miner Marathon (MARA) fell 7%, and online broker Robinhood (HOOD) fell 4%.

  Macy's (M): Shares of the struggling department store chain rose nearly 10% Friday morning, following a report that a group of investors has offered to buy it for the second time. The latest offer is $300 million higher than the previous one.

  Samsung Electronics (005930.KS): The manufacturing conglomerate gained 3% Friday morning after the company reported that its quarterly profit jumped to 15 times its size a year ago, pushing the stock to a three-year high, boosted by the AI ​​boom.

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  Fri, Jul 5, 2024 9:33am ET

  Stocks remain stable despite rising unemployment rate

  U.S. stocks held near all-time highs on Friday as investors analyzed how the June jobs report, which showed a slightly higher unemployment rate, will influence the Federal Reserve's interest rate decision.

  The S&P 500 Index (GSPC) was little changed after the report. The Dow Jones Industrial Average (DJI) fell below the flat line, while the tech-heavy Nasdaq Composite (IXIC) hovered above it. Friday's trading session continued Wednesday's action, as all three indicators were closed Thursday for the July 4 holiday.

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  Fri. Jul 5, 2024 at 8:59 AM ET

  Pressure mounts for Fed to act

  There is no doubt that Friday's jobs report will reveal that the Federal Reserve is at risk of falling behind.

  This means the central bank could end up cutting rates too late, just as many believe it was too slow to raise interest rates in 2022.

  With the unemployment rate now at its highest level since November 2021, other data, such as rising jobless claims and falling job openings, are starting to look like they are sending a clear signal that job gains have overstated the strength of the labor market.

  Inflation data continues to slow toward the Fed's 2% target, although that progress appears to have stalled in the first few months of the year.

  The Fed’s sensitivity to inflation above its target after the 40-year peak in price increases in 2022 has been the defining feature of this monetary policy regime. But the labor market is beginning to speak louder and clearer: Things are getting tough for more workers.

  Neil Dutta of Renaissance Macro has become the leading voice on Wall Street arguing that the Fed needs to be more aggressive in cutting rates this fall. In a note released minutes after Friday’s report, he said: “Today’s jobs report should reinforce expectations for a September rate cut. Economic conditions are cooling and that makes the tradeoffs for the Fed different.”

  Dutta said the Fed's July meeting should set the stage for a September cut.

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  Fri. Jul 5, 2024 at 8:54 AM ET

  Job creation is up, but unemployment rate hits highest level since 2021

  The U.S. labor market added more jobs than expected in June, while the unemployment rate unexpectedly rose to its highest level since November 2021, another sign that the labor market continues to cool.

  Data from Bureau of Labor Statistics Data released Friday showed the U.S. economy added 206,000 nonfarm payrolls in June, more than the 190,000 economists had expected.

  The unemployment rate rose to 4.1% from 4% the previous month and is the highest level in nearly three years. Job gains in June fell slightly from May, which saw job creation revised down Friday to 218,000 from 272,000 initially reported last month.

  Stock futures rose after the report, adding to gains after the market hit record highs earlier this week amid a string of weaker-than-expected economic data, including inflation readings that show the U.S. is once again heading toward a “disinflationary path,” according to Federal Reserve Chairman Jerome Powell.