Stocks New York Outlook: Strong labor market report supports prices | 05.03.21

NEW YORK (dpa-AFX) – After the recent losses, Wall Street beckons a recovery on Friday. The surprisingly strong labor market report by the US government initially had a clearly positive effect on prices.

Half an hour before the start of trading, the broker IG valued the Dow Jones Industrial (Dow Jones 30 Industrial) 0.74 percent higher at 31,154 points. On a weekly basis, the most important American stock index is heading for a plus of 0.72 percent. On Thursday he had lost over one percent after US Federal Reserve Chairman Jerome Powell had been cautious about the rise in capital market rates.

Significantly more new jobs than expected were created in the US economy in February. In addition, the unemployment rate surprisingly fell slightly, while analysts had expected stagnation. As expected, wages rose.

Since several federal states have recently relaxed the corona restrictions, the significant increase in employment fits into the picture, explained economist Thomas Gitzel from VP Bank. “It is already becoming apparent that the positive development will continue in March.” However, since the outbreak of the Corona crisis there has still been a loss of more than nine million jobs, Gitzel classified the current development. For this reason, too, there is “no need for hasty action” for the central bank.

However: “It is also clear that the better the economic data, the greater the doubt Financial markets in a continued expansive Monetary policythe expert warned. “The fear is that the Fed will exit its expansionary monetary policy earlier than previously communicated. The better than expected US job market In any case, it didn’t help to calm things down. Good economic data can turn into bad news for the markets. “

The shares of Slack fell according to the figures before the market by 0.4 percent. The office communication service reported strong business growth for the past year thanks to the high demand for office software caused by the corona. However, there were also high losses again. The company is about to be taken over by the US software company Salesforce for just under $ 28 billion.

The shareholders of the oil companies Chevron and Exxon Mobil, however, could look forward to price gains of 0.9 and 2.4 percent, respectively. The sharp rise in oil prices provided an upswing after the oil network Opec + initially failed to increase its production and thus caused a surprise on the markets.

Broadcom (Broadcom) stocks rose by just under one and a half percent according to the figures and the outlook. The semiconductor manufacturer reported high demand./gl/jha/

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