The stock market in the United States finished the week higher after data from the Department of Labor showed healthy job growth. Yesterday, the European Central Bank (ECB) cuts rates and introduced negative deposits rates – the first major central bank to implement such measure.
According to the Department of Labor, the U.S. economy added 217,000 jobs last month compared with 215,000 jobs in April. The unemployment rate remained at 6.3%. The Federal Reserve is monitoring the situation of the labor market as it continues to wind down its monthly bond-buying program, and is beginning to consider when to raise interest rates for the first time since 2006.
Here is our quarterly 13F roundup for high-profile hedge funds. The data is based on filings covering the quarter to the end of March 2022. These statements only provide a snapshot of hedge fund holdings at the end of March. They do not contain any information about when the holdings were bought or sold or Read More
Commenting on the employment data, Bill Schultz, chief investment officer at McQueen Ball & Associates told Bloomberg, “The data was surprisingly right on the line. It painted a portrait of an economy that’s growing, albeit gradually — not too fast, not too slow. The markets have risen this week in anticipation of this, plus what happened overseas with the ECB rate movement.”
On the other hand, Timothy Ghriskey, chief investment officer at Solaris Asset Management LLC opined, “The market likes this steady state of economic improvement. A really weak number would raise economic concerns that the economy is rolling over, and a too-strong number would cause concern about the Fed accelerating its tightening timetable. It’s a sweet spot for the market.”
- Dow Jones Industrial Average (DJIA)- 16,915.52 (+0.47%)
- S&P 500- 1,948.41 (+0.41 %)
- NASDAQ- 4,319.20 (+0.53%)
- Russell 2000- 1,164.36 (+0.90%)
- EURO STOXX 50 Price EUR- 3,294.28 (+0.83%)
- FTSE 100 Index- 6,858.21 (+0.66%)
- Deutsche Borse AG German Stock Index DAX- 9,987.19 (+0.40%)
- Nikkei 225- 15,077.24 (-0.01%)
- Hong Kong Hang Seng Index- 22,951.00 (-0.69%)
- Shanghai Shenzhen CSI 300 Index- 2,134.72 (-0.74%)
Stocks in Focus
Diamond Foods, Inc. (NASDAQ:DMND) declined nearly 11% to $29.74 per share after the company posted disappointing quarterly financial results. The company reported third quarter $105.6 million losses or -$3.63 per share compared with $15.6 million in losses or -$0.71 per share in the same period a year earlier.
The stock price of E TRADE Financial Corporation (NASDAQ:ETFC) surged more than 4% to $20.74 per share after analysts at Nomura reiterated their Buy rating for the stock stating that the company’s earnings should increase over the next three years.
Hertz Global Holdings, Inc. (NYSE:HTZ) dropped over 9% to $27.73 after the company disclosed that it will correct its financial records from 2011 until 2013 after its audit committee found accounting errors. In a regulatory filing, Hertz Global wrote, “Management, in consultation with the Audit Committee, has determined that at least one material weakness existed in Hertz’s internal control over financial reporting and that disclosure controls and procedures were ineffective at Dec. 31, 2013.”