JS&P 500 Hits Record As Jobs Shock Sinks Rate-Hike Bets: Stock Market Today
The S&P 500 cleared 7,755 and Wall Street is on course for its best week since April. The rally comes on the heels of a contraction in July payrolls. The U.S. economy unexpectedly shed 23,000 jobs in July against forecasts of an 80,000 gain, while May and June payrolls were revised down by a combined 103,000. Average hourly earnings rose just 0.1% on the month and 3.2% on the year, both below consensus. The unemployment rate fell to 4.1% from 4.2%, but for the wrong reason: the labor force shrank by 264,000 and the participation rate slid to 61.4%, the lowest since early 2021. Odds of a Fed rate hike in September collapsed to 42% from 58% on Thursday, while pricing for cumulative increases by December fell to 28 basis points from 32 basis points. The news sent U.S. equities to fresh records by midday Friday: The S&P 500 rose 0.6% to 7,755.49, a record high, while the Dow Jones Industr...
The S&P 500 cleared 7,755 and Wall Street is on course for its best week since April. The rally comes on the heels of a contraction in July payrolls. S. economy unexpectedly shed 23,000 jobs in July against forecasts of an 80,000 gain, while May and June payrolls were revised down by a combined 103,000.
2% on the year, both below consensus. 4%, the lowest since early 2021. Odds of a Fed rate hike in September collapsed to 42% from 58% on Thursday, while pricing for cumulative increases by December fell to 28 basis points from 32 basis points. S.
40. 22. 46. 5% gain.
6%. 2%. 1%. 0%.
2%. 7% as yields fell. Only three sectors were lower. 2%.
Industry-level moves were far more violent. 4%. 9% on the back of blowout software earnings. S.
1%. Software: The Epicenter of the Session’s Biggest Moves Atlassian Corp. 2% beat. Twilio Inc.
6%. Doximity Inc. 4% respectively. Cloudflare Inc.
1% earnings beat. In healthcare, Natera Inc. 91 billion, processing a record 1,044,000 tests and growing clinical MRD volumes 56% year-on-year. Halozyme Therapeutics Inc.
91 billion. Coherent Corp. 4% in a sixth straight advance — this one is not an earnings story, since the optics maker does not report until Aug. 12.
S. restrictions on Chinese data-center components, which could benefit domestic optical networking suppliers, along with JPMorgan raising its price target to $435 from $380 while maintaining an Overweight rating. Peer Applied Optoelectronics Inc. 6% after its own earnings beat.
A Dramatic Downside The Trade Desk Inc. 1% below consensus. Post Holdings Inc. 57 billion and flagging a preliminary fiscal 2027 outlook that is broadly flat, with management pointing to continued volume softness in certain categories.
Arrow Electronics Inc. 45 both landed above the high end of company guidance, with a cautious forward outlook overshadowing the beat. ResMed Inc. 5 billion, up 9%.
Investors focused instead on the pending divestiture of the MatrixCare software business and the $340 million Noctrix Health acquisition, both seen diluting earnings next year; RBC Capital and Wells Fargo trimmed price targets. Shift4 Payments Inc. 8% in a second session of post-print selling. 9%.
Elsewhere in Earnings Airbnb Inc. 6%