Stocks posted a strong initial rally on Thursday after the release of positive job reports. The unemployment rate in the U.S. dropped to 11.1% from 13.3%, showing a significant improvement in the labor market and business activities. This recovery came as daily new Coronavirus infections crossed 50,000 cases on Wednesday. As investors try to reconcile the implications of the positive job report and new infection records, the stock market erased part of its gains before closing.
Retracting its earlier session gain, the S&P 500 closed up 0.46%, the Dow was up 0.36%, and the Nasdaq gained 0.52%. Yet, today’s modest rally closed the week with a strong gain for the stock market, as Friday is closed for Independence Day Holiday.
Tesla Stock
Tesla (TSLA) stock was up an impressive 7.95%, in response to positive production news. Despite the Coronavirus and factory shutdowns, the company delivered 90,650 vehicles in the second quarter, greatly exceed the expectation of 72,000 by analysts. This comes as a surprise to investors who expected a greater production reduction for Tesla.
FANG Stocks
After the strong rally yesterday, FANG stocks posted mixed performances today, with Facebook (FB) down -1.74%, Amazon (AMZN) up 0.40%, Netflix (NFLX) down 1.80%, and Google (GOOGL) up 1.94%. FANG stocks have been leading the stock market recovery with impressive gains in the second quarter. However, as the stock prices continue to climb, investors begin to question whether the high price tag is justified by business profits.
Bitcoin Price
After an active trading session, Bitcoin price dropped by 1.5% back to its support level of $9,000. Despite recent halving, Bitcoin has been traded between the range of $9,000 and $12,000. Today’s selling pressure has again tested the $9,000 support level for Bitcoin. If BTC price drops below the $9,000 support, we expect the new support level to be $8,800 for Bitcoin.
Commodities and Treasuries
Commodities were up slightly today with gold up 0.4% and silver up 0.23%. Natural gas future was up 3.29%. Treasuries had modest gains expect for the long-end of the curve. 30-year treasury bond’s yield widened to 1.432%, while 10-year treasury’s yield tightened to 0.673%.
