The stock markets in the United States climbed on speculations that the tension between Ukraine and China is deescalating, which overshadowed the lower than expected employment data.
In a telephone interview with Bloomberg, Chad Morganlander, a money manager at Stifel Nicolaus & Co. commented, “The market is ebbing and flowing off of geopolitical news. It’s been quiet in the past 24 hours, and that has given a positive push to the market today.
About the U.S. employment situation, Morganlander said, “The overall jobs market in the U.S. remains bullish, but there is somewhat cautious tone on the European economy.”
Today, the Department of Labor reported that the number of people who filed for unemployment benefits increased last week. According to the agency, the jobless claims increased by 21,000 to 311,000 for the week ended August 9, the highest over the past six weeks.
John Manley, the chief equity strategist at Wells Fargo Fund Management, opined, “The jobless claims data may shake things up in the market a little bit, but we have to factor in some volatility in the summer jobless claims numbers. He added, “Even if the jobless claims numbers are higher than expected, this negativity can be overshadowed by the fact that rates will remain lower.”
• Dow Jones Industrial Average (DJIA)- 16,713.58 (+0.37%)
• S&P 500- 1,955.18 (+0.43%)
• NASDAQ- 4,453.00 (+0.43%)
• Russell 2000- 1,143.34 (+0.14 %)
• EURO STOXX 50 Price EUR- 3,058.16 (+0.07%)
• FTSE 100 Index- 6,685.26 (+0.43%)
• Deutsche Borse AG German Stock Index DAX- 9,225.10 (+0.29%)
• Nikkei 225- 15.314.57 (+0.66%)
• Hong Kong Hang Seng Index- 24,801.36 (-0.36%)
• Shanghai Shenzhen CSI 300 Index- 2,335.95 (-0.97%)
Stocks in Focus
The stock price of Kohl’s Corporation (NYSE:KSS) climbed 3.27% to $56.91 per share after the retailer reported second-quarter earnings that beat the consensus estimate of Wall Street analysts. Kohl’s delivered earnings of $1.33 per share compared with the $1.07 per share estimated by analysts. The company reported revenue of $4.24 billion, lower than the $4.28 billion consensus estimate.
The shares of Cisco Systems, Inc. (NASDAQ:CSCO) declined 2.62% to $24.54 after reporting a decline in revenue and announcing its decision to cut 6,000 jobs. The world’s largest manufacturer of networking-equipment said would write down as much as $700 million related to the job cuts.
The Class A shares of Berkshire Hathaway Inc. (NYSE:BRK.A) gained 1.62% to $202,850 per share today. It the first time for the Class A shares of the conglomerate to trade more than $200 thousand per share. Market observers noted that the upward movement of the stock confirmed the vision of Warren Buffett for the company to build wealth. Buffett has been leading the company for nearly 50 years.