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  • Writer's pictureKevin Hurley

Marketbites: Better-Than-Expected Jobs Data


Portfolio Manager Commentary:

Stocks slid on Thursday after better-than-expected jobs data increased investors’ anxiety around the state of the economy and path of interest rates. Private sector jobs increased by 497,000 in June, according to data from payroll processing firm ADP. This is the biggest monthly gain since July 2022. The ADP data, which is often unreliable and considered more volatile than other employment data, comes ahead of Friday’s official June payrolls report. Economists are expecting 240,000 non-farm payrolls were added last month, a slowing from the 339,000 jobs added in May, according to Dow Jones.

JetBlue Airways tumbled more than 6% after the company announced it would end its partnership in the northeast U.S. with American Airlines to focus on Spirit Airlines. American shares moved 2% lower, while Spirit rose more than 1%.

The shortened trading week resumed Wednesday for a losing session after a break for the Fourth of July holiday. Wall Street combed through minutes from June’s Federal Reserve policy meeting, which showed that most officials would support more increases ahead.

Chart of the Day:

Worldwide investments across borders have declined, but the U.S. remains the top recipient. Still, foreign investment in the U.S. fell to $285 billion in 2022 from $388 billion in 2021, mainly due to a drop in foreign purchases of American companies.

Globally, new overseas investments by businesses fell 12% from 2021 to $1.3 trillion, and they are unlikely to rebound strongly this year given that executives are “uncertain and risk averse,” the U.N. said. This made last year the worst for foreign investment since 2009 with the exception of 2020, when Covid-19 struck. The decline was smaller than the U.N. had feared given the scale of the economic uncertainties facing businesses, including the lingering effects of the pandemic, surging food and energy prices, and the U.S.-China economic rivalry.

Source: WSJ

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