US Stock Market Overview – Stocks Trade Mixed, as Gold Miners SurgeManufacturing in June surged more than expected
US stocks were mixed on Thursday, with the Nasdaq the worst performer as Netflix declined following worse than expected earnings. Mining shares shot higher, with the GDX miner ETF suring, as the yellow metal was buoyed following geopolitical action between Iran and the United States. Jobless claims in the US came out in line with expectations. Strong manufacturing figures could have reduced the chance that the Fed will ease rates this month
Oil prices were on the retreat, draggin down energy shares, following Wedneday’s reported from the Department of Energy that showed a larger than expected build in gasoline and distillate fuels. Sectors were mixed. Technology, consumer staples, and financials led stocks higher while Industrials were the worst performers.
US Shot Down Iranian Drone
Trump Says U.S. Ship Shot Down Iranian Drone in Strait of Hormuz. President Trump said that the Drone ‘Was Threatening safety of the Ship and the Ship’s Crew’. Iranian forces said Thursday they had seized a foreign tanker, temporarily pushing oil prices up on fears that Tehran could further disrupt shipping traffic on a vital waterway for crude. Iran’s claim is the latest in a series of incidents in the Persian Gulf that have heightened tensions in the region.
Jobless Claims Rise in Line with Expectations
US jobless claims rose 8,000 to 216,000 for the week ended July 13, according to the Labor Department. Data for the prior week was revised to show 1,000 fewer applications received than previously reported. Last week’s increase in claims was in line with expectations. The four-week moving average of initial claims, dipped 250 to 218,750 last week.
Wages Could Be Rising
The House of Representatives passed a bill Thursday to hike the federal minimum wage to $15 per hour in a win for liberal activists who have long pushed to give low-wage workers a raise. The Democratic-held chamber passed the plan in a 231-199 vote. The measure would gradually hike the US pay floor to $15 by 2025, then index further hikes to median wage growth. It would also phase out lower minimum wage paid to tipped workers.
The Philadelphia Fed saw its primary gauge measuring the sector jump from 0.3 in June to 21.8, far better than expectations of 5 and the highest in a year. The index measures the difference between companies saying they are expanding activity against those expecting to reduce. Nearly every indicator within the index rose sharply, with employment doubling g to 30, its highest reading since October 2017, while the average workweek more than tripled to 23, its best in 14 months.