Further record territory for the Dow Jones Industrial Average followed data showing a greater level of job creation in the US in July, as non-farm payrolls increased by 209,000, underlining the strength of the US labour market.
Another day, another record close for the Dow. An eighth-straight closing high. This record run has been achieved in the face of signs of detiorating economic growth.
A recent spate of disappointing data and economic surveys has raised doubts about further interest rate increases by the Federal Reserve this year.
But rising Treasury yields in response to today's labour market data, appeared to put the possibility of at least one more rate hike in 2017 firmly back on the table.
Let's take a look at those yields
- 10-year Treasury yield 2.27% +4 basis points
- 5-year Treasury yield 1.82% +3bps
- 2-year Treasury yield 1.35% +1bps
The dollar also found strong support from the data, even against the euro, which has been the best performing of the G10 currencies this year. As us equity markets were closing, the dollar was up.
- Dollar-euro $1.1782 +0.8%
- Dollar-pound $1.3047 +0.7%
Dow continues record run
Stocks on Wall Street were higher, but only modestly so. However, the Dow pushed further into record territory, with banks providing the bulk of the upward momentum.
Dow Jones 22,092.81 +0.3%
S&P 500 2,476.65 +0.2%
Nasdaq Comp 6,351.56 +0.2%
NYSE Comp 11,984.63 +0.2%
Gold spot $1,259.17 -0.7%
Oil WTI $49.49 +0.9%
CBOE sales and profits rise
The Chigaco Board Options Exchange, the country's largest derivatives trading venue, reported a massive 85% jump in net revenue in its second quarter, compared the same period last year.
CBOE said its $3.4bn purchase of Bats Global Markets last year helped boost turnover, with revenues hitting $266.9m in the April-June quarter. This, however, fell just shy of the $270m forecast by Wall Street analysts.
"We remain intensely focused on realizing the benefits of the Bats acquisition and are pleased with the success of our integration to date," said Edward Tilly, chairmand and chief executive.
Earnings per share narrowly beat expectations, rising to 87 cents a share against forecasts of 86 cents.
The shares fell 1.6% to $93.50.
Viacom tumbles after sales outlook
Shares of media group Viacom fell 13.8% to $30.22 after it suggested a dip in sales for pay-TV companies during the rest of this year.
In its outlook, accompanying its second-quarter results on Thursday, the owner of Comedy Central expressed concerns over payment from a partner in China and falling subscription growth.
The outlook has massively overshadowed a set rather good second-quarter results. Net income jumped 58% and earnings per share of $1.17 comfortably outstripped expectations of $1.05.
Watch out later for results by Berkshire Hathaway, the investment vehicle of billionaire Warren Buffet.