Key Takeaways
- The S&P 500 slipped 0.1% on Friday, June 7, 2024, as a stronger-than-expected jobs report pushed back expectations of interest rate cuts by the Federal Reserve.
- The spot price of gold fell amid waning rate-cut hopes and data showing a drop in bullion purchases by China last month, pressuring shares of Newmont and other miners.
- Air Products and Chemicals shares jumped after the company signed a deal to provide green hydrogen to French oil and gas firm TotalEnergies.
Major U.S. equities indexes moved lower on Friday after data released by the Bureau of Labor Statistics revealed that the economy added more jobs than expected in May.
Although the strong jobs report contradicted earlier indications of a potential economic slowdown, the surprising resilience in the labor market renewed doubts about when the Federal Reserve might move forward with interest rate cuts.
The S&P 500 slipped 0.1%, while the Dow and the Nasdaq ended the session 0.2% lower.
Shares of solar technology firm Enphase Energy (ENPH) tumbled 7.2%, suffering the steepest losses of any S&P 500 constituent, following the disclosure of a class action lawsuit filed against the company. The matter involves allegations of illegal business practices by officers or directors of the company related to inconsistencies in earnings and growth projections for the first quarter of 2023.
The price of gold dropped over 3% after the jobs report dampened hopes for interest rate cuts and as data showed that China’s central bank did not purchase any bullion for its official reserves in May. The falling price of gold pressured shares of Newmont (NEM), the world’s largest gold producer, which lost 5%. Shares of fellow miner Freeport-McMoRan (FCX) fell 3.9%.
Shares of agricultural chemical firm Corteva (CTVA) slipped 3.7%. Although the company recently launched a new herbicide to protect corn crops, Corteva posted year-over-year declines in sales and net income when it reported first-quarter earnings last month.
Shares of atmospheric gas distributor Air Products and Chemicals (APD) posted Friday’s biggest gains in the S&P 500, jumping 3.7%. The strong performance came after the company signed a 15-year deal to provide green hydrogen to TotalEnergies (TTE) as the French oil and gas firm aims to reduce carbon emissions at its refineries in Europe.
Abbott Laboratories (ABT) shares advanced 3.2% as the health care technology firm said it had received a CE Mark for its dual-chamber leadless pacemaker, clearing the company to begin sales of the device in Europe. The company expects the device, which received approval from U.S. regulators last year, to drive sales growth in its cardiac rhythm management segment.
3M (MMM) shares gained 2.7% after Bank of America upgraded the stock to “buy” and boosted its price target to $120 from $105. The upgrade represented a vote of confidence in the conglomerate’s new CEO Bill Brown, with analysts highlighting his potential to accelerate growth by focusing on innovation and operating efficiency.
Shares of Capital One Financial (COF) were up 2.5% after the bank and credit card issuer announced a fraud-prevention partnership with payment processors Stripe and Adyen (ADYEY). The collaboration between the companies involves launching an open-source program called Direct Data Share that is designed to improve the accuracy of real-time authorization decisions for transactions, helping reduce losses related to fraud.