Bonds & Stocks
Stocks rose after the latest economic figures signaled further cooling that will be key for the Federal Reserve to cut interest rates. The S&P 500 rose to 5,550. The Bloomberg “Magnificent Seven” gauge of megacaps climbed 1.1%. The Russell 2000 of small firms was little changed. Treasury 10-year yields fell one basis point to 4.02%.
Economy
Initial applications for US unemployment benefits jumped to the highest level in almost a year, adding to evidence that the labor market is slowing. Initial claims increased by 14,000 to 249,000 in the week ended July 27, according to Labor Department data released Thursday. The median forecast in a Bloomberg survey of economists called for 236,000 applications. Michigan and Missouri were among states with large gains.
World
Russia is releasing Wall Street Journal reporter Evan Gershkovich and former US Marine Paul Whelan as part of a major prisoner swap with the US, according to people familiar with the situation. The Kremlin is also releasing dissident Vladimir Kara-Murza as part of the agreement, a European official said on condition of anonymity.