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Stocks fall, Treasury yields rise as Wall Street worries about jobs report

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US stocks fell on Friday as Wall Street weighed down the government’s monthly employment report, which showed business conditions remained tight in September, despite a slowdown in hiring.

US economy Add 263,000 jobs Last month the unemployment rate fell to 3.5%. Economists expected a salary gain of 255,000 and unemployment to remain at 3.7%.

S&P 500 Index (^ Salafist Group for Preaching and Combat) is down 1.8%, while the Dow Jones Industrial Average is down (^ DJI) approximately 400 pips or 1.3%. Nasdaq Composite (^ ninth) led the way lower, down 2.5%. Meanwhile in the bond market, Treasury yields soared, with benchmark 10-year notes jumping 7 basis points to 3.9% and the two-year yield 8 basis points to 4.3% in the wake of the issue.

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“The negative market reaction could be a sign that investors are addressing the possibility of no change in the Fed’s tough playbook in the near term,” said Mike Lowengart, head of model portfolio creation at Morgan Stanley’s Global Investment Office, in a statement. note. “Keep in mind that the next Fed decision won’t be until early November, so more data needs to be absorbed, not least the inflation gauge next week.”

Investors were betting on it Signs of a cold labor market That would force Fed policy makers to change course in the course of raising interest rates, particularly after a string of weak economic data showed Sharp contraction in manufacturing activity And the Fewer job opportunities. But many Wall Street strategists have argued that hopes of an imminent pivot are premature, a sentiment that this jobs report appears to bolster.

In recent research notes, JPMorgan analysts said stock bulls will need monthly payroll readings as low as 100,000 to see the market shift the Fed’s outlook, while Bank of America analysts said the pivot won’t happen “until payrolls are affected.”

A team at Bank of America led by price research strategist Megan Swiber noted that “the Fed’s job is still far from over: expect the increases to continue until negative payrolls are nearly within reach.”

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Moreover, Fed officials themselves have sent clear messages in recent weeks that there are no plans yet to undo aggressive political intervention.

“We have to go further,” Chicago Fed President Charles Evans said Thursday, noting that Benchmark rate likely to be at 4.5% to 4.75% By the spring of 2023.” “Inflation is now high and we need a more restrictive monetary policy setting. “

WASHINGTON, DC – JULY 26: Construction workers look outside the Marriner S. Eccles Federal Reserve building on July 26, 2022 in Washington, DC. (Photo by Anna Moneymaker/Getty Images)

US crude oil futures continued This week’s rally in the wake of the heaviest OPEC + Production cuts since 2020. DataTrek Research has indicated that West Texas Intermediate (WTI) crude at more than $85 a barrel will prolong positive energy inflation trends until at least the beginning of 2023. The company also noted that oil prices are an “underappreciated anchor issue” of the Federal Reserve and market expectations for near-term economic growth. West Texas Intermediate crude futures traded above $90 a barrel early Friday, up $10 this week.

Elsewhere in the market, chip makers came under pressure Friday morning after Advanced Micro Devices (AMD) Lowered revenue guidance for the third quarter He cautioned against making “significant” inventory corrections across the computer supply chain. Shares are down 9% at the start of the session. As was the burden on the sector Samsung reported its first profit drop since 2019another sign of the chip market turmoil.

Levi Strauss (fibrous) was also a mover on Friday after the retailer cut its guidance, citing headwinds from a stronger dollar, sluggish consumer demand and continued supply chain continuity. The stock fell nearly 9% on Friday.

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Meanwhile, DraftKing shares (DKING) rose 4% after Bloomberg News reported Thursday that ESPN is also Approaching a big new partnership deal With the sports betting company, citing sources familiar with the agreement.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed

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MicroStrategy is at its lowest level since 2020 after the sales were revealed

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(Bloomberg) — Shares of MicroStrategy touched their lowest level since August 2020 after the enterprise software company, which in recent years has been known as the largest buyer of bitcoin, revealed its first sale of the token.

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The stock fell 1.1 percent to $136.63 on Thursday, down 75 percent this year. Bitcoin rose less than 1% to around $16,590 and is believed to have fallen 64% since the start of the year.

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In a filing on Wednesday, MicroStrategy said it acquired approximately 2,395 Bitcoin between the beginning of November and December 21 through its subsidiary MacroStrategy, and paid out approximately $42.8 million in cash. It then sold 704 of the tokens on Dec. 22 for a total of about $11.8 million, citing tax purposes, before buying another 810 of them two days later.

Matt Malley, chief market strategist for Miller Tabak + Co. Step down as CEO. This news means they don’t seem to want to do that anytime soon.”

Overall, MicroStrategy held about 132,500 bitcoins worth over $4 billion USD as of December 27th. The company paid an average purchase price of $30,397 per bitcoin.

“Given MicroStrategy’s $2.4 billion in leverage, we believe the company may have a lot of leverage over Bitcoin, and may face some liquidity risk,” Jefferies analyst Brent Thiel wrote in a note on Wednesday. Thill has an “underperform” rating on the stock and a price target of $110.

Over the years of the pandemic, MicroStrategy has become well known for its Bitcoin takeovers, largely led by Saylor. Earlier this year, Saylor stepped down from that role and now serves as CEO at the company and continues to lead its bitcoin strategy.

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MicroStrategy was trading around $120 before Saylor first announced the company’s Bitcoin purchases in 2020. The stock reached an all-time high of $1,315 in February 2021.

(Updates to include the stock’s closing price in the second paragraph.)

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Bankman-Fried May File Petition in New York Federal Court Next Week Before Judge Louis Kaplan By Cointelegraph

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Former FTX CEO Sam Bankman-Fried is set to appear in court on the afternoon of January 3 to enter a lawsuit over two counts of wire fraud and six counts of conspiracy against him related to the collapse of cryptocurrency exchange FTX, according to Reuters. mentioned on December 28, citing court records. Bankman-Fried will appear before District Judge Lewis Kaplan in Manhattan.

Judge Kaplan was appointed to hear the case on December 27 after the original judge in the case, Ronnie Abrams, Resigned herself because of connections between FTX and the law firm Davis Polk & Wardwell, where her husband is a partner. The company provided advisory services to FTX in 2021.