US Stocks Weekly Performance
Major United States (US) stock markets closed the week on Friday with gains following positive jobs report that has seen more than 3 million jobs created since Joe Biden took charge as the president. The data further showed that production orders and factory shipments both rose by 1.7%.
In a speech commemorating the July 4 holiday, United States President Joe Biden said that the US is currently seeing “record economic growth” and that the nation’s economy is “roaring back” after experiencing a downturn amid the coronavirus pandemic. Joe called American economic recovery “the best in decades” and “in the world.”
Both the Nasdaq 100 and S&P 500 indices reached record high on Friday’s close while the Nasdaq 100 rose by 1.15%. The S&P 500 (up 0.75%) rose for a seventh consecutive day, for the first time seen since 1997. The Dow Jones closed 0.44% higher.
Investors bet big on technology stocks with Microsoft closing 2.23% higher, Oracle was up 2.87% with Alphabet gaining 2.30%.
Shares of IBM shares fell after the company’s announcement of management shifts and Boeing slid on news of a crashing cargo plane.
Monday Markets Closed
This year’s US Independence Day falls on Sunday and so the country’s stock markets will be closed on Monday.
The New York Stock Exchange and the Nasdaq shut at the end of regular trade Friday.
Major News Highlights
Tesla second quarter deliveries Miss Estimates
Tesla’s second-quarter vehicle deliveries fell below expectations on Friday as the company revealed it delivered 201,250 vehicles. However, the figure represents a new record for the electric vehicle maker.
During the same period, Tesla produced 206,421 vehicles in total.
“Our net income and cash flow results will be announced along with the rest of our financial performance when we announce Q2 earnings.” The company said in a statement.
Volvo reports H1 record-breaking sales
Volvo Group last week revealed that its car sales for the first half of 2021 increased 41% year on year breaking a company record for most cars sold in the first half of a year.
The Swedish multinational manufacturing company reported that it sold 380,757 cars globally, driven by strong demand in China, the United States, and Europe.
GM 2nd Quarter Car Sales
General Motors announced on Thursday the company’s vehicle sales in the United States jumped 39.7% to 688,236 in the second quarter of 2021.
This was however below analysts’ expectations due to the chip shortage which has significantly affected vehicle production across the globe.
“The U.S. economy is accelerating, consumer spending is robust and jobs are plentiful,” said Elaine Buckberg, GM chief economist. “Consumer demand for vehicles is also strong, but constrained by very tight inventories. We expect continued high demand in the second half of this year and into 2022.”
China orders removal of Didi from app stores
The Cyberspace Administration of China on Sunday ordered the removal of the ride-hailing application owned by Didi Global Inc. from Google’s Play Store and Apple’s App Store accusing the company of illegally collecting users’ data.
The decision comes two days after the agency announced the investigation into Didi in order to protect China’s “national security and the public interest,” by making the company comply with the country’s data protection rules.
On Saturday, the company denied reports of transferring user information to United States authorities following its IPO debut on the New York Stock Exchange last week. Didi says that all of the vehicle-for-hire company’s domestic user data is being kept in mainland China only.
The company further added that registration of new users will be suspended during the review period.
Amazon grants new CEO Jassy 61,000 shares
Amazon.com announced on Friday that its incoming CEO Andy Jassy will be granted 61,000 shares of the company’s common stock once he assumes his position on July 5.
“In connection with Mr. Jassy’s promotion, the Company approved a restricted stock unit award under the Company’s 1997 Stock Incentive Plan with respect to 61,000 shares of common stock of the Company, which will be granted as of the date Mr. Jassy becomes President and Chief Executive Officer and vest over ten years, and approved providing Mr. Jassy with appropriate security arrangements,” Amazon said in the filing.
Bezos will remain as Amazon’s executive chairman and he will remain active in the affairs of the company.
Richard Branson to go to space on July 11
Virgin Galactic said its founder Richard Branson will go into space on July 11 ahead of fellow billionaire Jeff Bezos, whose company Blue Origin will fly him to space on July 20.
“As part of a remarkable crew of mission specialists, I’m honored to help validate the journey our future astronauts will undertake and ensure we deliver the unique customer experience people expect from Virgin,” the British entrepreneur said.
The flight will be Virgin Galactic’s first to carry a full crew of two pilots and four mission specialists in the cabin, including Branson, “who will be testing the private astronaut experience.”
Virgin Galactic also announced it will share a global live stream of the spacecraft, for the first time.
US Tells El Salvador to ensure Bitcoin is ‘well regulated’
The United States Department has urged El Salvador to ensure Bitcoin is well regulated with the cryptocurrency set to become legal tender in the Latin American country.
US undersecretary of state for political affairs Victoria Nuland told El Salvador President Nayib Bukele that “whatever El Salvador chooses to do, you ensure that it is well regulated, that it is transparent and that it is responsible, and you protect yourself against malign actors.”
In June 2021, El Salvador became the first country in the world to pass legislation to make Bitcoin recognized by law and Bukele later announced it will become legal tender in the country on September 7.
However, the International Monetary Fund has expressed “legal and economic concerns” about the move.
Iraq backs extending OPEC+ deal until Dec 2022
Iraqi Oil Minister Ihsan Abdul Jabbar said on Sunday that his country supports extending the oil production cuts agreed by the Organization of the Petroleum Exporting Countries and its allies until December 2022.
Jabbar also noted Iraq has backed the OPEC+ proposal to increase oil output by 400,000 barrels per day from August in order with plans of gradually lifting production restrictions implemented amid the last year’s coronavirus-related price decline.
As the OPEC+ is set to continue oil talks on Monday, the minister confirmed Iraq’s oil exports would be 2.9 million barrels per day this month in line with the OPEC agreement.
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