Here Are 3 Hot Things to Know About Stocks Right Now
- The Trump administration imposed tariffs on $34 billion of Chinese imports and China responded in-kind.
- The U.S. added 213,000 new jobs in June, topping economists’ forecasts of 195,000. The unemployment rate rose to 4.0% from 3.8%.
- Biogen Inc. (BIIB) jumped 19% following positive results from a study of its Alzheimer’s treatment.
Wall Street Overview
Stocks ended higher on Friday, July 6, after the U.S. added more jobs to payrolls in June than expected and even as China and the United States slapped tariffs on billions of dollars of each other’s exports.
The state-run China Daily newspaper confirmed the Chinese government responded to the U.S. imposition of a 25% levy on 818 China-made goods with tariffs on around $34 billion of imported U.S. goods including autos and agricultural products. China called it “the largest-scale trade war in economic history.”
China’s retaliation essentially ensures that Donald Trump will follow through on his threat to boost those tariffs to $50 billion, and possibly as high as $500 billion, as he continues to press for generational changes in the trade relationship between the world’s two biggest economies.
The Dow Jones Industrial Average rose 100 points, or 0.4%, to 24,456, the S&P 500 rose 0.85%, and the Nasdaq was up 1.34%.
The U.S. added 213,000 new jobs in June, topping economists’ forecasts of 195,000. The unemployment rate rose to 4.0% from 3.8%, the Labor Department said. Hourly wages in June rose 0.2% to $26.98. The annual rate of pay increases remained at 2.7%.
“The jump in the unemployment rate, at this stage, is not too alarming, and actually helps to explain why wages haven’t been surging,” said Kathleen Brooks of Capital Index. “This report is generally risk-friendly, as it suggests that the U.S. economy remains in its sweet spot: Employers are hiring, however, wages aren’t rising fast enough to trigger sharper-than-expected rate rises from the Federal Reserve.”
Biogen Inc. (BIIB) rose 19% after a Phase 2 clinical study of an Alzheimer’s treatment developed with Tokyo-based Eisai Co. showed positive results.
Ford Motor Co. (F) said sales in China in June were 62,057 vehicles, a decline of 38% from a year earlier. Ford rose 0.1%.
Amazon.com Inc. (AMZN) plans to publish a holiday toy catalog following the demise of Toys “R” Us Inc., Bloomberg reported, citing people with knowledge of online retailer’s strategy. Amazon shares rose 0.7%.
Facebook Inc. (FB) is in discussions for a reality show about soccer star Cristiano Ronaldo, according to Variety. Facebook is in talks to bring the docu-series to Facebook Watch, its video platform for TV-style content, multiple sources said. Ronaldo, the Portuguese footballer, could receive around $10 million for the 13-episode show, sources said. Shares rose 2.4%.
Square Inc. (SQ) traded up 3.3% despite BTIG analyst Mark Palmer reiterating his sell rating on the stock following the company’s withdrawal of an application with the Federal Deposit Insurance Corporation for a banking charter. A spokeswoman told MarketWatch that Square would resubmit the application at a later date.
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