Connect with us

Business

Stock market today: S&P and Nasdaq pull back after scorching jobs report

Published

on

 


A landmark jobs report dragged stocks lower on Friday as it raised concerns about the Fed’s willingness to remain aggressive with its rate hikes.

Before the opening bell, the Labor Department said the US economy added 528,000 new jobs in July, more than double what economists had expected. The United States has now recovered the 22 million jobs lost in the first months of the pandemic. Also in the report: The unemployment rate fell to 3.5%, a level not seen since February 2020, while average hourly earnings rose 0.5% month-over-month and 5, 2% year over year.

“Job gains were widespread and particularly strong in sectors such as education, health care and government,” said Jeffrey Roach, chief economist for independent brokerage LPL Financial. “Given the stability of the labor market, particularly given the rising cost of borrowing and rising inflation, we do not expect the National Bureau of Economic Research (NBER) to call a recession at this point. The labor market is strong enough to offset weaknesses in other sectors of the economy such as real estate.”

Sign up for Kiplinger’s FREE Investing Weekly e-newsletter for stock, ETF and mutual fund recommendations, plus other investing tips.

“This reading is positive for economic growth and households,” said Tim Courtney, chief investment officer of investment firm Exencial Wealth Advisors. “This should support consumer spending going forward. While this is good news, it likely means the Federal Reserve will continue to hike interest rates.”

It was this last point that pushed the 10-year Treasury yield up 15.4 basis points to 2.83% today. (A basis point equals one-hundredth of a percentage point.) This initially sent stocks deep into the red, though they bottomed as the session progressed. At the close, the Dow Jones Industrial Average rose 0.2% to 32,803. S&P 500 Indexmeanwhile, was down 0.2% at 4,145, while the Nasdaq Compound whose components are most sensitive to rising rates fell 0.5% to 12,657.

stock price chart 080522

Other news on the stock market today:

  • Small cap Russell 2000gained 0.8% to 1,921.
  • U.S. Crude Futuresrose 0.5% to end at $89.01 a barrel.
  • A strong dollar sentgold futuresdown 0.9% to $1,791.20 an ounce.
  • Bitcoinrose 2.1% to $22,926.10. (Bitcoin trades 24 hours a day; prices shown here are as of 4 p.m.)
  • Lyft (LYFT) climbed 16.6% after the ride-sharing company said it had 19.9 million passengers in the second quarter, driving revenue per passenger of $49.89 (higher than the 49 $.30 expected by analysts). LYFT also posted an adjusted profit of 13 cents per share against expectations of a loss per share of 4 cents, while revenue jumped 29.5% year-on-year to 990.7. millions of dollars. “While we are encouraged by the resumption of carpooling, thanks in part to the increase in airport volume and the momentum of corporate bookings, we recognize the concerns about the peak in travel demand,” says Angelo Zino. (Buy), analyst at CFRA Research. “That said, lagging regions on the West Coast (e.g. San Francisco) are now recovering faster than other regions and should support revenue in the second half. Additionally, we appreciate LYFT’s growing focus on EBITDA growth by being more cautious on expenses.”
  • carvana(CVNA) was another big winner after earnings, with shares up 40.1%. While the online car dealership reported lower-than-expected revenue of $3.8 billion and a broader adjusted loss of $2.35 per share in the second quarter, CEO Ernie Garcia said in the earnings call of the company that he was “changing direction to promote efficiency and cash flow. flows” in response to a difficult economic environment. “While we carefully review last night’s CVNA quarterly announcement and recent business trends, overall we view the momentum as ‘better than feared’ and suggesting underlying stabilization and improved operational control of company,” said Brian Nagel, analyst at Oppenheimer (Outperform).

Stay on the defensive!

Next up are inflation data, with July’s Consumer Price Index (CPI) due out Wednesday morning. Douglas Porter, chief economist at BMO Capital Markets, points to the recent drop in oil prices. U.S. crude futures fell 6.8% in July and are down another 9.7% so far in August) as a reason to cheer investors on this upcoming release. .

“A moderation in energy and other commodity costs would go a long way to making the Fed’s job easier to control inflation expectations,” Porter said. “In turn, this could reduce recession risks by removing some of the pressure on consumers.” Yet while the economist says the headline inflation rate in Wednesday’s CPI report could fall back below 9% after topping that level in June, it will take several months to bring inflation back significantly higher. down.

For investors, this means: staying on the defensive. This could include focusing on stocks in the best inflation-proof sectors, such as healthcare, consumer staples and utilities. Beverage stocks are also surprisingly good names to buy, not just for inflation protection, but also for dividends. And for those who want to spread their risk, consider these 10 defensive exchange-traded funds (ETFs) that could provide some ballast for the choppy waters ahead.

Sources

1/ https://Google.com/

2/ https://www.kiplinger.com/investing/stocks/605040/stock-market-today-080522-sp-nasdaq-retreat-after-sizzling-jobs-report

The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos

ExBUlletin

to request, modification Contact us at Here or [email protected]