Latest news with #GlenSmith
Wall Street Journal
4 days ago
- Business
- Wall Street Journal
Reassuring Jobs Report Brings Relief to Investors
A better-than-expected jobs report juiced optimism on Wall Street. 'It is extremely encouraging to see a six-figure print during a time of significant uncertainty driven by tariffs and economic fears,' said Glen Smith, chief investment officer at Texas-based GDS Wealth Management. Despite some signs of weaknesses in this morning's data, the report staved off fears of an imminent and severe job-market slowdown.
CNN
4 days ago
- Business
- CNN
Dow jumps 550 points as Wall Street tries to cope with trade war, Trump-Musk spat
Stocks rose on Friday after a slightly better-than-expected jobs report soothed nerves about how the US economy has been holding up during the early stages of President Donald Trump's tariff regime. The Dow was up by 570 points, or 1.35%. The broader S&P 500 rose 1.24% and the tech-heavy Nasdaq Composite gained 1.4%. The S&P 500 climbed above 6,000 points, which is a level it had not touched since February. The benchmark index was set to end the week in the green. Stock futures jumped higher Friday morning after data from the Labor Department showed the economy added 139,000 jobs last month, which was a slowdown from the month prior but better than anticipated. Wall Street has been looking for any sign of relief that the economy might be muddling through the uncertainty stoked by Trump's tariffs. Data from ADP on Wednesday showed an unexpected drop-off in private-sector hiring, though Friday's Labor Department data helped assuage concerns about the economy. 'While job growth decelerated in May, the payroll data came in above expectations and it is extremely encouraging to see a six-figure print during a time of significant uncertainty driven by tariffs and economic fears,' said Glen Smith, CIO at GDS Wealth Management. Yet uncertainty lingers about how Trump's tariff policy might impact economic growth and business activity in the coming months. It will likely be a few months before the full impact of tariffs on business decisions, hiring and inflation show up in the economic data. 'The deleterious impacts of uncertain tariff policies have yet to be fully reflected in the jobs data,' said Steve Wyett, chief investment strategist at BOK Financial. Stocks leading the rebound included Tesla (TSLA), which rose 5% after an enormous drop the day prior. Tesla on Thursday plummeted 14% after President Donald Trump and CEO Elon Musk, who recently stepped aside from his role leading the Department of Government Efficiency, traded barbs on social media. The slide wiped roughly $152 million off of Tesla's market value, which was the biggest single-day drop in value in the company's history. Trump on Friday told CNN's Dana Bash that he's 'not even thinking about Elon' and won't speak to him 'for a while.' 'He's got a problem,' the president said. 'The poor guy's got a problem.' Investors sold government bonds and yields rose as traders dialed back their expectations for rate cuts from the Federal Reserve this year. A resilient labor market gives the Fed more time to hold rates steady. The yield on the 10-year US Treasury rose to 4.47% and the yield on the 30-year US treasury rose to almost 4.94%. 'The Fed should be reluctant to cut rates because the full effects of tariffs haven't impacted inflation numbers yet and the job market isn't deteriorating enough to force their hand,' said Chris Zaccarelli, chief investment officer at Northlight Asset Management. Investors in recent weeks have increasingly embraced the 'TACO' trade, betting that 'Trump always chickens out' on his most aggressive tariff threats. Trump and Chinese President Xi Jinping spoke by phone on Thursday. The long-awaited call comes after weeks of simmering tensions between Washington and Beijing. 'While there is still uncertainty over tariffs, the stock market is forward looking and has been pricing in an eventual thawing of trade fears,' Smith said. 'It's becoming clear that the rhetoric on tariffs is much tougher than the action.' Trump separately hiked tariffs on steel and aluminum imports to 50% from 25%, which went into effect on Wednesday. Wall Street had largely expected the tariffs, and rallied despite their implementation. 'There are no signs of a summer break from tariff drama,' analysts at JPMorgan Chase said in a Tuesday note. US stocks are coming off their best monthly gain since November 2023 as Wall Street has steadily climbed out of the hole caused by Trump's tariff uncertainty. The S&P 500 is up about 1.75% so far this month. This is a developing story and will be updated.
Yahoo
07-03-2025
- Business
- Yahoo
US dollar falters after data shows slowing labor market
By Gertrude Chavez-Dreyfuss NEW YORK (Reuters) -The U.S. dollar dropped to multi-month lows against the euro and yen on Friday after data showed the labor market in the world's largest economy slowed last month, creating fewer jobs than expected. The report suggested that the Federal Reserve remained on track to cut interest rates multiple times this year. U.S. rate futures on Friday priced in 78 basis points (bps) of easing this year following the nonfarm payrolls report, or about three rate cuts of 25 bps each, according to LSEG calculations. The first rate reduction is likely to resume in June. The euro, on the other hand, continued its winning ways, poised for its best week in 16 years with a gain of 4.6% against the dollar, boosted by Germany's game-changing fiscal reforms. It hit another four-month peak of $1.0888 after the jobs data. It last traded at $1.0863, up 0.7%. BofA Global Research raised its year-end forecast for the euro to $1.15, from $1.10 previously. Against the Japanese currency, the greenback slid 0.2% against the yen to 147.65 yen, after earlier falling to a five-month low of 147.05 yen. Nonfarm payrolls increased by 151,000 jobs last month after rising by a downwardly revised 125,000 in January, according to the Labor Department's Bureau of Labor Statistics. Economists polled by Reuters had forecast payrolls gaining 160,000 jobs after a previously reported 143,000 rise in January. "Friday's jobs report was weaker than expected, which is concerning because this report doesn't account for the recent government job cuts from DOGE, so it suggests that businesses are taking a pause on hiring until there is more certainty about tariff policy and the economic outlook," said Glen Smith, chief investment officer, at GDS Wealth Management in Flower Mound, Texas, in emailed comments. The firm has $1.2 billion in assets. The dollar index, which measures the greenback's value versus six major currencies, has fallen 3.5% this week, on track for its worst weekly performance since November 2022. It fell 0.4% on Friday to 103.72, after earlier sliding to its lowest since early November. Natalia Lojevsky, managing director, at CIFC Asset Management, with $44 billion in assets under management thinks "the softer average hourly earnings is probably a relief for the Fed, who continue to evaluate inflationary pressures both in the labor market and broader economy as a result of the yet uncertain trade and tariff policy." Last month's average hourly earnings, a measure of wage inflation moderated to a 0.3% rise, from an 0.5% increase in January. On a year-on-year basis, average earnings slipped to 4% from 4.1% the previous month. Overall, it has been a volatile week for the currency market, driven mainly by U.S. trade and economic growth uncertainties and a pivotal development in Europe as its largest economy abandoned its fiscal constraints to boost spending and revive growth. Treasury Secretary Scott Bessent said on Friday that the U.S. economy may slow as it transitions away from public spending towards more private spending, calling it a "detox period" needed to reach a more sustainable equilibrium. Bessent said he thought that some level of tariffs was going to be needed permanently given the high level of economic imbalances around the world and the need for more secure supply chains. Another reprieve of levies aimed at Mexico and Canada announced by U.S. President Donald Trump on Thursday offered little relief to whiplashed markets. The greenback rose 0.3% against the Canadian dollar to C$1.4351, but was little changed versus the Mexican peso at 20.284 pesos. The exemption expires on April 2 when Trump said he will impose reciprocal tariffs on all U.S. trading partners. The dollar has "fallen out of favour" amid the uncertainty, with the perceived inflationary impact of tariffs no longer enough to support it, said Kieran Williams, head of Asia FX at InTouch Capital Markets. Currency bid prices at 7 March 03:48 p.m. GMT Descripti RIC Last U.S. Pct YTD Pct High Low on Close Change Bid Bid Previous Session Dollar 103.73 104.19 -0.43% -4.39% 104.23 103. index 46 Euro/Doll 1.0846 1.0786 0.56% 4.76% $1.0889 $1.0 ar 782 Dollar/Ye 147.34 148.015 -0.49% -6.39% 148.14 146. n 94 Euro/Yen 159.79 159.57 0.15% -2.1% 160.55 159. 28 Dollar/Sw 0.8786 0.8838 -0.58% -3.17% 0.8838 0.87 iss 68 Sterling/ 1.2912 1.2882 0.23% 3.23% $1.2943 $1.2 Dollar 877 Dollar/Ca 1.4354 1.4301 0.39% -0.16% 1.4377 1.42 nadian 8 Aussie/Do 0.6307 0.6332 -0.4% 1.93% $0.6337 $0.6 llar 283 Euro/Swis 0.9527 0.953 -0.02% 1.44% 0.9574 0.95 s 18 Euro/Ster 0.8398 0.8371 0.32% 1.51% 0.8417 0.83 ling 71 NZ 0.5713 0.5734 -0.43% 2.03% $0.5741 0.56 Dollar/Do 95 llar Dollar/No 10.8157 10.8786 -0.58% -4.84% 10.8979 10.7 rway 945 Euro/Norw 11.7294 11.7372 -0.07% -0.34% 11.782 11.7 ay 304 Dollar/Sw 10.0746 10.1683 -0.92% -8.55% 10.1879 10.0 eden 54 Euro/Swed 10.9276 10.9673 -0.36% -4.7% 10.9885 10.9 en 207 Sign in to access your portfolio
