Stocks struggled to get off to a good start on Tuesday as trading volume thinned ahead of the holidays. As a reminder, stock and bond markets will close early tomorrow and will also be closed on Thursday for Independence Day.
After a slow start to the day, major stock indexes finished in positive territory thanks to dovish comments from Fed Chairman Powell and continued gains in large caps.
Shortly after Powell spoke at a central bank forum in Sintra, Portugal, Bureau of Labor Statistics Indicated The number of job openings increased slightly The number of employed people rose to 8.1 million in May from 7.9 million in April, beating economists’ expectations, but the Job Openings and Labor Turnover Survey (JOLTS) also showed a downward revision of 140,000 from April’s figure.
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The data highlights that the labor market, while recovering, is cooling slightly, “which is what we expected and what we’ve seen,” Powell said. Deflationary trend He said “substantial progress” had been made in reducing inflation, as seen in recent economic reports.
But the central bank chief said the Fed would wait to see more data and inflation “We are moving sustainably towards 2%” before cuts begin Interest level.
Powell also said he would not give a specific date for when the central bank would start cutting interest rates. FedWatchToolsFutures traders estimate there is a 63% chance that the first quarter-point cut will come in September.
Tesla surges after second-quarter delivery data
Tesla TSLA shares rose 10.2% as the electric car maker 443,956 vehicles delivered, exceeding expectations The second quarter’s rise was frenetic 7 Great StocksIt’s up 60% since late April.
More recently, TSLA has been experiencing a “wave of positive momentum” following its annual meeting in mid-June. Shareholders reapproved Musk’s 2018 compensation plan.CFRA Research analysts say. Garrett Nelson (Buy). “We believe that with this meeting, Musk successfully shifted investor attention away from near-term challenges and toward longer-term opportunities in artificial intelligence (AI), robotics, energy storage, and other areas of the business.”
Nelson said the next big event for the EV maker is Robotaxi Day on Aug. 8, which “will likely be much more important than today’s report or the earnings release on July 23.”
Crowdstrike went too far, too fast, analysts say
On the negative side: Crowdstrike (CRWD) fell 1.8%. Piper Sandler analyst Rob Owens downgraded the stock. Changed from overweight to neutral (equivalent to hold and buy, respectively).
Owens said the downgrade was a “valuation decision” and the stock is up about 50% since the start of the year. Cybersecurity StocksMoreover, CrowdStrike’s impressive growth, which goes far beyond the stock chart, suggests that “meaningful upside is likely to become more difficult as the law of large numbers begins to weigh on the security leader’s overall growth rate.”
Regarding the main indicators, Nasdaq Composite Index It increased 0.8% to 18,028; S&P 500 It increased 0.6% to 5,509. Dow Jones Industrial Average It rose 0.4% to 39,331.
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