Paul Pelosi's Stock Trades
Stock Market Update: US Stocks Edge Higher on Softer Payroll Data
Wall Street Hits Records Amid Economic Slowdown Hopes
US stocks ticked higher on Wednesday as traders digested softer-than-expected jobs data. The S&P 500 and the Nasdaq were poised to add to Tuesday's record close. Bond yields edged lower by three basis points to 4.4%.
ADP data showed that private payrolls grew by only 150,000 in June, falling short of the 160,000 jobs economists had anticipated. Additionally, wage growth slowed to 4.9%, marking the smallest pay increase since 2021.
"Job growth has been solid, but not broad-based," stated Nela Richardson, ADP's chief economist. "Had it not been for a rebound in hiring in leisure and hospitality, June would have been a downbeat month." A slower pace of hiring may bolster the case for the Federal Reserve to cut interest rates later this year. However, it also casts doubt on whether the US can achieve the soft landing Wall Street is hoping for.
Markets are pricing in one or two rate cuts by the end of the year, but largely expect the Fed to keep interest rates within the 5.25%-5.50% range at this month's policy meeting, according to the CME FedWatch tool.
Investors will close up shop at the end of Wednesday's session for the Independence Day holiday. Markets will reopen on Friday, with all eyes on the June nonfarm payroll report, the next key piece of jobs data that could inform the path of Fed policy.
Paul Pelosi's Stock Trades
Representative Nancy Pelosi disclosed stock trades made by her husband, Paul Pelosi, last month. Paul Pelosi, an investment professional, increased his exposure to the AI boom by buying shares of Nvidia and call options on Broadcom, according to a disclosure filed by Nancy Pelosi on Tuesday.
Here are the trades made by Paul Pelosi between June 24 and July 1:
- Purchased:
- 20 Broadcom call options with an $800 strike price and an expiration date of June 20, 2025, valued between $1 million and $5 million.
- 10,000 shares of Nvidia stock, valued between $1 million and $5 million.
- Sold:
- 2,500 shares of Tesla stock, valued between $250,000 and $500,000.
- 2,000 shares of Visa stock, valued between $500,000 and $1 million.
Trading activity by members of Congress and their spouses has faced criticism in recent years, with calls to ban Congress from trading individual stocks due to the sensitive or non-public information they might possess. However, Pelosi has long dismissed calls for such legislation. In December 2021, she responded to the idea of a possible stock trading ban with, "We are a free-market economy. They should be able to participate in that." In July 2022, she denied that her husband made stock trades based on information she shared with him.
Wall Street Hits Records Amid Economic Slowdown Hopes
Wall Street’s record-breaking rally continued on Wednesday after weak reports on the US economy kept the door open for possible interest rate cuts. The S&P 500 rose 0.5%, setting an all-time high for the second straight day and the 33rd time this year. The Nasdaq composite added 0.9%, reaching a new record, while the Dow Jones Industrial Average slipped by 23 points, or 0.1%.
Tesla was a significant contributor to the market's gains, rising by 6.5% after reporting a milder drop in sales for the spring than analysts had feared. Nvidia also boosted the market, climbing by 4.6%, bringing the chip company’s year-to-date gain to 159%.
US Treasurys:
In the bond market, Treasury yields slid following weaker-than-expected reports on the job market and US services companies. The yield on the 10-year Treasury dropped to 4.35% from 4.44%, with much of the decline coming after a report indicated contraction in activity for businesses in real estate, retail trade, and other US services industries in June. This was the third contraction in 49 months and weaker than economists' forecasts, which had predicted just a slowing of growth. The report from the Institute for Supply Management also indicated that prices were increasing at a slower pace.
Earlier reports showed a slowing job market. More US workers applied for unemployment benefits last week than economists had expected, though the number remains low historically. An ADP report indicated that private-sector employers slowed their hiring in June, contrary to expectations of acceleration.
Wall Street hopes the economy will soften just enough to curb inflation without causing significant job losses or triggering a recession. The upcoming June nonfarm payroll report, due Friday, will provide a comprehensive update on employment and could significantly impact Federal Reserve policy and market expectations.