Private job gains impress, Shares of GoPro (GPRO) tank after IPO and Boeing (BA) wins NASA contract.

Bourbon & Bayonets / Wednesday, July 2nd, 2014

Markets wavered as news was released that June’s private job gains hit a one and a half-year high. The payroll processing company, ADP, announced that their reading showed that private employers added 281,000 new jobs in June. This was up from last month’s reading of 179,000. June’s data also surpassed economist’s expectations of 200,000 jobs. This goes on record as the highest private job gains since November 2012. The government’s in-depth report is set to be released Thursday and with the large gains in private sector jobs, economists are expecting impressive numbers tomorrow. Stuart Hoffman, chief economist at PNC Financial Services, said, “This is further proof that recent weaker growth numbers are not a true reflection of the U.S. economy.”

Shares of GoPro, Inc. (GPRO) were falling over 12% after the company’s IPO less than a week ago. The company went on a four-day streak of gains only to hit a wall today. And if the declines continue through the close of the day, would mark the first day since the IPO that they closed lower. On Thursday, GoPro shares made their IPO debut at $24. They hit their highest level on Tuesday, when they reached $48 per share. Karl Loomes, a market analyst with Astec Analytics said that the company’s short-selling activity has become one of the highest in their system and that GoPro’s utilization levels are near 100%. “Both these figures suggest borrowers are snapping up all available GoPro shares they can, and are willing to pay a high price to do so.”

Shares of The Boeing Company (BA) were falling slightly after the company was awarded a $2.8 billion contract with NASA to develop the core stage of the Space Launch System (SLS). The SLS is working with Boeing to develop the most powerful rocket ever built. Virginia Barnes, Boeing SLS vice president and program manager, said, “Our teams have dedicated themselves to ensuring that the SLS – the largest ever – will be built safely, affordably and on time. We are passionate about NASA’s mission to explore deep space. It’s a very personal mission, as well as a national mandate.”

That’s all for today,

Warren Gates, Normandy Research

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