Federated Hermes senior equity strategist Linda Duessel warns that the U.S. is overspending on stimulus.
U.S. stocks were mixed following the solid July jobs report.
Dow Jones Industrial Average futures rose 76 points, or 0.2%, while S&P 500 futures ticked up 0.08% and Nasdaq 100 futures remained lower.
The U.S. economy added 943,000 jobs last month as the unemployment rate slipped to 5.4%. The Labor Force Participation Rate hovered at 61.7%. For June, job additions were revised higher to 938,000 as the unemployment rate rose to 5.9%.
U.S. Treasurys were moderately lower with selling pushing the 10-year yield up to 1.28% minutes after the data.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GS | THE GOLDMAN SACHS GROUP, INC. | 384.30 | +6.44 | +1.70% |
| MS | MORGAN STANLEY | 97.83 | +1.54 | +1.60% |
In stocks, big banks were in focus after the Federal Reserve announced new capital requirements based on how well each performed during the stress tests conducted earlier this year. Goldman Sachs Group Inc. and Morgan Stanley were given the highest capital ratios at 13.4% and 13.2%, respectively.
Novavax Inc. pushed back the timeline for seeking U.S. authorization for its COVID-19 vaccine from the third quarter to the fourth quarter. The process has been delayed several times due to difficulty obtaining materials and equipment.
Didi Global Inc. is considering giving up control of its most valuable data in order to appease Chinese regulators that have been probing the company following its U.S. initial public offering, Bloomberg News reports, citing people familiar with the matter. Didi shares have slumped 33% through Thursday since last month, pricing its IPO at $14 a share.
In earnings, Beyond Meat Inc. reported a bigger-than-expected loss and said restaurants were taking a conservative approache to orders due to uncertainty over COVID-19. The plant-based burger maker guided revenue below Wall Street estimates.
In commodities, West Texas Intermediate crude oil climbed 86 cents to $69.95 a barrel and gold slid $12.30 to $1,796.60 an ounce.
Overseas markets were choppy.
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European bourses held small gains, with Britain’s FTSE 100, Germany’s DAX 30 and France’s CAC 40 all up less than 0.2%.
In Asia, Japan’s Nikkei 225 advanced 0.33%, while Hong Kong’s Hang Seng index and China’s Shanghai Composite declined 0.1% and 0.24%, respectively.
