Major stock indexes were volatile in shortened trading on Wednesday. Trading volume was light ahead of the stock market holiday tomorrow, but for those who stayed in, there was plenty of news to sift through.
Jobs Data dominated economic headlines. For example, the Labor Department New unemployment claims Last week, the number increased by 4,000, exceeding expectations, to 234,000.
another Data from ADP Private payrolls rose by 150,000 in June, below economists’ expectations and the lowest level in five months. The report also showed that wages for workers who remained in their current jobs rose 4.9% from a year earlier, the smallest annual increase since August 2021.
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But the most anticipated event this week is Economic Calendar The monthly employment report is released on Friday morning.
Outside the labor market, data from the Institute for Supply Management (ISM) shows: Services Purchasing Managers’ Index (PMI) It unexpectedly fell into contraction territory in June, falling to 48.8% from 53.8% in May. This is the second time in three months that the index has fallen below 50, signaling a slowdown in economic activity.
A flurry of data released today has strengthened expectations that interest rate cuts will come sooner rather than later. FedWatchToolsFutures traders now estimate the chances of the first quarter-point cut coming in September are 67%, up from 63% the previous day.
Southwest Introduces Poison Pill
In individual stock news, Southwest Airlines (LUV, +1.6%) said its board of directors Approved the Shareholder Rights Plan After the Activist Investor Elliott Management disclosed an 11% stake. I joined a low-cost airline last month.
The rights plan, also known as a poison pill, will take effect for shareholders who hold 12.5% ​​of Southwest Airlines stock and is intended to protect LUV investors.
Paramount shares rise nearly 7% after latest M&A update
Elsewhere, Paramount Global Paramount (PARA) rose 6.9% today after reports that Skydance Media has reached a tentative agreement to acquire National Amusements, which owns approximately 77% of PARA’s voting stock. The two companies have previously been embroiled in complex acquisition talks, and the move opens the door to a possible merger between Paramount and Skydance, the company reported. The Wall Street Journal.
Paramount shares are Berkshire Hathaway Stock PortfolioWarren Buffett & Co. initiated an investment in the media company in the first quarter of 2022. However, PARA only represented a small percentage of its portfolio as of March 31.
Regarding the main indicators, Nasdaq Composite Index increased 0.9% to 18,188; S&P 500 It rose 0.5% to 5,537, both new record closes. Dow Jones Industrial Average It fell 0.06% to 39,308.
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