US stocks mixed as nonfarm payrolls data points to slowing economy

Investing.com – U.S. stocks were mixed on Friday as investors digested signs of a slowing labor market, giving the Federal Reserve food for thought as it tries to tame inflation.

At 09:40 ET (13:40 GMT), Apple shares were down 30 points, or 0.1%, up 6 points, or 0.1%, and up 60 points, or 0.3%.

Payroll data points to slowing labor market

The U.S. economy added more jobs than expected in June, although the number was lower than the previous month, pointing to a possible slowdown in demand for labor in the world’s largest economy.

The Labor Department reported Friday that the number of job openings in May fell to 206,000 from 218,000 in May. The May reading was revised downward from an initial 272,000, while the April reading was cut by 57,000 to 108,000.

Economists had expected the number of jobs in June to reach 191,000 jobs.

In addition, the inflation rate rose to 4.1%, from 4.0% in May, and slowed slightly on a monthly basis.

“June’s nonfarm payrolls rose slightly above expectations, but the large downward revisions for April and May are the story,” said Cathy Jones, chief fixed income strategist at Bank of America. “The labor market is slowing.” Charles Schwab (NYSE:) (NYSE:SCHW), in a post on social media platform X.

The slowdown in the labor market in June also comes after a series of weaker-than-expected labor market readings this week.

The weak readings, coupled with a weak preliminary reading, have raised hopes that the Federal Reserve has enough confidence to start cutting interest rates.

Stock markets were closed for the Independence Day holiday on Thursday, but Wall Street indexes were at record highs hit earlier this week.

Tesla shares rise on Chinese demand

Tesla (NASDAQ:) shares rose about 1% as several state-owned companies in China’s financial hub Shanghai recently purchased the electric vehicle maker’s best-selling Model Y as utility vehicles, following a local media report that Tesla vehicles had become eligible for the Chinese local government’s procurement list.

Macy’s (NYSE:) shares rose more than 7% after the Wall Street Journal reported that Arkhouse Management and Brigade Capital Management had raised their offer to buy the retail chain for about $6.9 billion.

Coinbase Global (NASDAQ:) stock fell 6% as the cryptocurrency exchange suffered after bitcoin, the world’s most popular digital currency, fell to its lowest level since February.

Crude oil on track for weekly gains

Crude oil prices held steady on Friday, but were on track for a fourth straight positive week on hopes of stronger summer fuel demand in the United States.

By 09:40 ET, West Texas Intermediate (WTI) futures were down 0.1% at $83.78 a barrel, while the contract was down 0.1% at $87.35 a barrel.

Oil prices rose this week on expectations of strong summer demand in the United States, the world’s largest oil consumer, as official data showed the country’s crude and fuel inventories all fell more than expected last week.

Market sentiment was also supported this week by escalating geopolitical tensions in the Middle East.

(Ambar Warrick contributed to this article.)