Wall Street opened slightly higher on Thursday, July 2nd, as job growth slowed down in June, lowering the probability that the Federal Reserve will raise the interest rate this year. European stock markets traded lower and the mood was one of caution with Greece set to vote on a referendum on Sunday.
Job growth slows down in the summer and labor participation shrinks an indication that the Federal Reserve may not increase the federal funds rate in September. Policy makers in the Fed have been monitoring the labor market as one of their benchmarks on when to raise the federal funds rate.
The Greek debt crisis continues to remain in focus as Greek people are set to vote on a referendum on Sunday. On Wednesday, Prime Minister Alexis Tsipras urged Greeks to vote “No” to an international bailout deal.
The S&P 500 was trading up 6.83 points or 0.33% to 2083.42 at the beginning of the trading session. As of 9:35 a.m. E.T., all the U.S. indices were trading higher.
Top Market News Today
June Jobs Report
The U.S. economy added 223,000 jobs in June, coming in below analysts’ expectations. The jobless rate fell to a seven-year low of 5.3% as more people left the workforce. The labor force participation fell to 62.6% in June from 62.9% in May, its lowest since 1977.
Greece’s Tsipras Digs in Against Bailout
The Greek prime minister rejected the latest creditors’ proposal on Wednesday after the country failed to pay its debt payment on Monday night. Tsipras tells voters that rejecting austerity will yield a better deal.
Stocks to Watch
Tesla Motors, Inc. (NASDAQ/TSLA)
The company said it delivered 11,507 Model S sedans in the second quarter, a 52% increase over year-to-year changes. The delivery falls short from the first quarter’s 55% year-to-year growth.
Facebook, Inc. (NASDAQ/FB)
The giant social media firm will begin sharing ad revenue with creators of video, hoping to attract more ads.
HealthSouth Corp. (NYSE/HLS)
JPM securities upgraded the healthcare services to “market outperform” from “market perform” based on an upbeat outlook.
AutoNation, Inc. (NYSE/AN)
The auto retailer reported a nine percent increase in June, with same-store sales up seven percent.
Hewlett-Packard Company (NYSE/HPQ)
The company just filed the paperwork to execute its planned November 1st split into two companies. Financial details of the two business that HP plans to create were in the SEC filing.