Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Pre-Market Primer: Job Growth Crushes Expectations; Tesla Motors Inc Wins Petition to Bypass Dealers

By

The US economy owes a big thanks to the leisure and hospitality industry.

PrintPRINT
Stocks are set to rise today as job creation beat expectations for June.

Last month, the US economy generated 195,000 new jobs. Most sectors reported a rise in employment, though the public sector shed 7,000 workers and manufacturing lost 6,000. The leisure and hospitality industry added the most at 75,000, up from a 14,000 rise a year ago.

Economists expected only 165,000 hires last month, which is below the six-month average of 194,000.

The unemployment rate and labor force participation rate were both unchanged in June at 7.6% and 63.5%, respectively.

Ahead of the report, stock index futures signaled optimism among traders. Dow (INDEXDJX:.DJI) futures were up 0.77% at 15,031. Futures contracts on the S&P 500 (INDEXSP:.INX) rose 0.73% to 1,620.90 and Nasdaq (INDEXNASDAQ:.IXIC) futures climbed 0.83% to 2,960.75.

Cyclical shares that rise with the economy such as Bank of America Corp (NYSE:BAC) also rose on optimism that the jobs report would beat expectations. BofA was up 1.09% and JPMorgan Chase & Co. (NYSE:JPM) rose 0.93% in pre-market trading. Spot gold prices were down 0.62% at $1,242.20/ounce and bond yields were up slightly at 2.56%.

European shares were mixed this morning after surging higher yesterday after European Central Bank chief Mario Draghi signaled that they might loosen monetary policy soon. German industrial data disappointed. In May, industrial orders in the eurozone's largest economy fell 1.3% on a monthly basis. In April, orders fell 2.2%. France's trade gap also suffered in May as manufacturing exports fell and import demand was flat. France imported 6 billion euros more than it imported.

Portugal's bond yields sank as prime minister Pedro Passos Coelho took steps to keep his government together. The interest rate on its 10-year bond fell 29 basis points to 7.18%.

Japan's Nikkei 225 (INDEXNIKKEI:.NI225) rallied 2.08%.

Tesla (NASDAQ:TSLA) shares rose 2.6% this morning after it forecast that it will sell 21,000 Model S vehicles this year. This is greater than the number of electric cars already on the streets of Hong Kong, the company said. Tesla also won more than 100,000 signatures on a White House petition to let it bypass the dealer model and sell directly to consumers. Tesla is currently barred from selling in several states that require a dealership license.

Samsung Electronics Co., Ltd (OTCMKTS:SSNLF) shares fell 3.8% after disappointing on earnings. Though operating profit at the Korean company was up 47% from last year in the second quarter, it missed analyst expectations. Since its April launch, Samsung sold 20 million Galaxy S4 smartphones.

Twitter: @vincent_trivett
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE