Thursday, May 19, 2022

Global Market Square

By on August 6, 2021

Jobs Growth of 943,000 Blows projections out of the water surpassing all expectations, Wall Street closes with gains, Global Market Square presented by Birling Capital.

The U.S. and European stock markets ended the week mostly higher. The S&P 500 rose to another record high, the Nasdaq Composite ended lower, and the U.S. treasury bonds yields rose sharply. European stock markets ended higher, recording one of its best weeks in months. 

Most investors are reacting positively to the much better than expected jobs growth during July. The U.S. economy created 943,000 new jobs in July, with the bonus of a falling unemployment rate to 5.4%; this is a direct indication that some of the labor shortages have begun to ease. The jobs growth number surpassed the consensus estimates of 870,000 by a whopping 73,000 additional jobs. 

As the corporate earnings parade continues, we begin highlighting two local favorites:

  • Evertec, Inc. (EVTC): reported 2Q2021 revenues of $149.1 million, up 26%, and Net Income of $49.2 million; also, Evertec repurchased during the quarter $24.4 million of its shares. The stock closed at $45.93, up 0.79%.
  • Triple S Management (GTS): reported 2Q021 revenues of $1 billion up 15.1% and net income of $23.6 million, down 45.8% compared to the same period last year. The stock closed at $24.46, up 0.62%.

Several Key economic benchmarks published today: 

  • U.S. Total Nonfarm Payrolls: rose to 146.82 Million, up from 145.88 Million last month, an increase of 0.65%. 
  • U.S. Unemployment Rate: fell to 5.40%, compared to 5.90% last month, lower than the long-term average of 5.77%.
  • U.S. Personal Income: rose to 20.41 Trillion, up from 20.39 Trillion the previous month, a rise of 0.13% the prior month.

Eurozone Summary for August 6:

  • Stoxx 600 closed at 470.07 up 0.11 points or 0.023%.
  • FTSE 100 closed at 7,122.95, up 2.52 points or 0.04%
  • Dax Index closed at 15,761.45, up 16.78 points or 0.11%.

Wall Street summary for August 6:

  • The Dow Jones Industrial Average closed at 35,208.51, up 144.26 points or 0.41%. 
  • The Standard & Poor’s 500 closed at 4,436.52, up 7.42 points, or 0.17%.
  • The Nasdaq Composite Index closed at 14,835.76, down 59.36 points, or 0.40%.
  • The Birling Capital Puerto Rico Stock Index closed at 2,553.51, up 30.61 points, or 1.21%.
  • The U.S. Treasury 10-year note closed at 1.31%.
  • The U.S. Treasury 2-year note closed at 0.21%.

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