Wall Street finished lower after a choppy session on Friday, as investors reacted to a mixed jobs report by booking some profits in the technology space, which has been the engine of the market gains so far this year. The U.S. economy added 275K jobs in February, topping analyst estimates of 190K. At the same time, the unemployment rate moved up to 3.9% vs. the expected 3.7% figure. For the week, the Nasdaq (COMP:IND) slipped 1.2%while the Dow Jones (DJI) and S&P 500 (SP500) fell 0.9% and 0.3%respectively. Read Seeking Alpha’s Catalyst Watch for a preview of next week’s major events.
While the Fed’s restrictive monetary policy is putting pressure on economic activity and inflation, cutting interest rates “too soon” could cause damage. That was according to testimony this week from Jay Powell, who reiterated before Congress that there was no evidence the economy was falling into a recession. It may also be appropriate to “begin dialing back policy restraint at some point this year,” but the central bank needs “greater confidence that inflation is moving sustainably toward 2%.” SA Investing Group Leader Mott Capital Management said the Fed Chair pretty much stayed on script, though “he seemed to put some distance” around the dot plot from the FOMC’s December meeting. (101 comments)
Bitcoin (BTC-USD) briefly surpassed its November 2021 record high on Tuesday as demand for the token continued to be fueled by excitement over spot bitcoin ETFs and the April halving event. The top cryptocurrency rose to $69,200, propelling its market cap to as high as $1.35T, which exceeded the entire U.S. high-yield bond market. However, a sharp reversal ensued, likely due to profit-taking, before trading volatility saw bitcoin turn higher. In the same session, spot gold (XAUUSD:CUR) climbed to a new record, buoyed by expectations of a June rate cut and a move into safe havens. (133 comments)
There had been worries over real estate loans and internal controls, but New York Community Bancorp (NYCB) raised more than $1B on Wednesday from an investor group led by the firm of former Treasury Secretary Steven Mnuchin. It came along with an executive shakeup, including for Alessandro DiNello, who was named CEO only last week. The investment is “a positive endorsement of the turnaround that is underway,” DiNello declared, adding that the bank now has a strong balance sheet and liquidity position. NYCB sank 42% on Wednesday before the news, and after a string of trading halts, shares resumed to end the session 7.5% higher. The stock is still down over 60% YTD. (354 comments)
Novo Nordisk (NVO) shares hit an all-time high on Thursday after the Danish drugmaker reported promising results from an early-stage clinical trial of its experimental oral weight-loss drug. Amycretin – a long-acting co-agonist of GLP-1 and amylin – helped patients lose 13% of their weight in 12 weeks on the pill, compared to the company’s highly popular Wegovy, which helped patients shed around 6% in the same amount of time. Meanwhile, Novo expects Wegovy to be approved in China this year and is already planning to launch the drug there in capped volumes. (46 comments)
The proposal had been pitched for years, but the SEC finally adopted new rules that will require many public companies to disclose climate-related risks in their financial statements and annual reports. Chairman Gary Gensler framed the new guidelines as more related to the risks that companies and investors may face from climate change effects, although some of the new rules center around how companies contribute to climate change. Controversy over the new disclosures resulted in a close 3-2 vote at the SEC and even prompted a legal challenge from a coalition of 10 states to vacate the new rules. (15 comments)
