Shares of banks and other lenders and money managers rose slightly after a stronger-than-anticipated rebound in jobs growth in June.
The unemployment rate fell sharply, but still remains above 11%, according to the Labor Department. One strategist said investors should not be surprised that the stock rally continues even with an elevated unemployment rate.
"Why does the stock market produce better returns when angst on Main Street is high?" asked Jim Paulsen, chief investment strategist at money manager The Leuthold Group, in a note to clients. "Because a high unemployment rate signals outsized potential to improve the economy in future years by lowering unemployment, boosting incomes, raising spending and speeding profit growth."
Swiss bank Credit Suisse Group is conducting an internal review of funds operated jointly with investment manager Greensill, which invests in a private security firm that runs a hotel in Mogadishu, a coal miner that paid Greensill in stock instead of cash, and several firms that got more in financing than they generated in revenue, The Wall Street Journal reported.
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