- The U.S. economy added 206,000 jobs in June.
- Saks Fifth Avenue’s parent company, HBC, announced it would acquire Neiman Marcus Group for $2.65 billion.
- Some wealthy Democratic donors have said they will withhold donations unless President Joe Biden drops out of the presidential race.
Here are five important things investors should know before starting the trading day.
The S&P 500 and Nasdaq Composite Index each hit new all-time highs on Wednesday, closing at all-time highs. (Markets were closed on Thursday for Independence Day.) The composite index rose 0.51%, while the tech-heavy index gained 0.88%, led by large technology companies such as Tesla and Nvidia. The exception was the Dow Jones Industrial Average, which fell 23.85 points, or 0.06%, for the day. Trading volume was light on Wednesday due to the early closure of the New York Stock Exchange. Follow real-time market updates.
A sign at a job fair held at Brunswick Community College on Thursday, April 11, 2024 in Bolivia, North Carolina, USA.
Alison Joyce | Bloomberg | Getty Images
The U.S. economy added 206,000 jobs in June, slightly above the 200,000 expected by Dow Jones. The May nonfarm payrolls report was also revised down to an increase of 218,000, down sharply from the initial forecast of 272,000. However, the unemployment rate unexpectedly rose to 4.1% in June, the highest level since October 2021 and slightly above the 4% expected. This is a conflicting sign for Federal Reserve officials as they ponder their next move.
Saks Fifth Avenue at Waterside Shops.
John Graeme | LightRocket | Getty Images
HBC, the parent company of Saks Fifth Avenue, announced it would buy fellow luxury retailer Neiman Marcus Group for $2.65 billion. The deal would create Saks Global, which would include Saks Fifth Avenue, the department store chain that bears the Neiman Marcus name, Saks Off Fifth and Bergdorf Goodman. As part of the deal, Saks.com CEO Mark Metrick will become chief executive officer of Saks Global, and HBC CEO Richard Baker will become chairman of the company’s board. The acquisition comes at a tough time for traditional brick-and-mortar retailers, which have struggled with the rapid growth of e-commerce.
Traders work on the floor of the New York Stock Exchange in New York City on June 12, 2024, as a screen shows Federal Reserve Chairman Jerome Powell’s press conference following the Fed’s interest rate announcement.
Brendan McDiarmid | Reuters
Federal Reserve officials signaled at their June meeting that inflation was moving in the right direction, but reiterated that they were not prepared to cut rates from their current range until they had “greater confidence” that inflation was moving toward the Fed’s 2% target. According to minutes of the meeting released Wednesday, there was disagreement among the 19 central bank governors who took part in the discussions, with some signaling a willingness to raise rates, but they ultimately decided to keep rates unchanged at 5.25% to 5.50%.
U.S. President Joe Biden speaks about extreme weather at the DC Emergency Operations Center in Washington, DC, on July 2, 2024.
Jim Watson | AFP | Getty Images
Some wealthy Democratic donors, including heirs to the Disney family fortune, said they would hold off on giving to the party until President Joe Biden withdraws from the presidential race. The move comes after Biden’s dismal debate performances raised concerns about whether he could win the election against former President Donald Trump. Abigail Disney, granddaughter of Walt Disney Company co-founder Roy O. Disney, a longtime donor to the party, told CNBC she was suspending her donations because “the stakes are too high.” And she’s not alone in thinking so. Moriah Foundation president Gideon Stein also said he would pause a planned $3.5 million donation unless Biden resigns. The president has said he has no plans to stop giving.
—CNBC’s Alex Harring, Jeff Cox and Brian Schwartz contributed to this report.
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