Stocks closed higher on Wednesday, with the S&P 500 adding 0.5% and the Nasdaq Composite up nearly 1%, continuing their record highs for the year. Following a mixed jobs report, where nonfarm payrolls showed 206 thousand new jobs created but the unemployment rate slightly increased to 4.1%, markets had a relatively muted reaction. Despite the positive job numbers, the prior two-month job numbers were revised down by 111 thousand.
In the retail space, Saks Fifth Avenue announced the purchase of Nieman Marcus for $2.65 billion, forming Saks Global. Amazon will have a minority stake in the company and provide technological and logistical expertise. At the same time, Arkhouse Management and Brigade Capital Management increased their bid for Macy’s to $6.9 billion, signaling potential consolidation in the retail sector amid shifting trends towards online shopping. Retailers may be adapting their business models to appeal to younger shoppers and retain customers as shopping habits evolve.
Another significant development is Tesla’s Model Y being placed on China’s approved list of electric and hybrid vehicles for local government purchase. This move could boost Tesla sales in China, especially after concerns were raised when China banned government officials from using iPhones. Approval of the Model Y could positively impact Tesla’s sales in the region. In the premarket trading, Tesla was up 2%.
Bitcoin experienced a decline of over 5% to just over $55 thousand on Wednesday, breaking below its 200-day moving average. This drop also affected shares of Coinbase, which were indicated lower by 5% in premarket activity. When an asset breaks its 200-day moving average, it can lead to increased selling pressure, potentially creating both challenges and opportunities for investors.
As trading continues, low volume in the market may lead to choppy price movements. Earnings season will begin at the end of the week, and next week will be filled with economic events, including Fed Chairman Powell’s Congressional testimony and updates on CPI and PPI. Despite potential market catalysts next week, investors are advised to stick with their investing plans and long-term objectives. The upcoming events and economic data releases could impact market volatility, emphasizing the need to stay prepared and adaptable in the current market environment.
