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U.S. stocks are jumping after tech earnings, July jobs report

Published 08/03/2023, 07:40 PM
Updated 08/04/2023, 11:09 AM
© Reuters.

Investing.com -- U.S. stocks were rising as investors digest the latest Big Tech earnings and as the July jobs report showed the economy added fewer positions than expected last month.

By 10:41 ET (14:41 GMT), the Dow Jones Industrial Average was up 193 points or 0.5%, while the S&P 500 was up 0.4%, and the NASDAQ Composite was up 0.5%.

The benchmark Wall Street indices closed lower Thursday, taking a breather after hefty gains during July, with surging bond yields weighing.

Jobs report in spotlight

The tech sector has led the way on the promise of artificial intelligence to the industry and in hope the Federal Reserve would reach the end of its interest rate increases sooner rather than later.

Friday's job report is raising those hopes. The July monthly official jobs report said the economy added 187,000 jobs, lower than the 200,000 new positions expected and indicating that job growth has decelerated to its lowest level since 2020.

The unemployment rate ticked lower to 3.5% from 3.6%.

Apple, Amazon release results

Elsewhere, quarterly earnings continue to emerge although the peak has passed. Roughly 79% of S&P 500 companies have given results, with about 80% surpassing Wall Street expectations, according to FactSet.

Most attention will be on the results after the close Thursday from tech behemoths Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN).

Apple posted higher-than-anticipated quarterly income, thanks in part to strong services demand, but revenue still fell as consumers reined in spending on the iPhone and iPad maker's gadgets.

Growth at Amazon's cloud computing division slowed by less than expected in the second quarter, sparking hopes that the much scrutinized unit will soon see a turnaround from a recent downturn.

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Additionally, Airbnb (NASDAQ:ABNB), DraftKings (NASDAQ:DKNG) and Dropbox (NASDAQ:DBX) will be in focus after releasing results after the close Thursday.

Crude gains on extended output cuts

Oil prices rose Friday, on course for the sixth consecutive week of gains on the back of output cuts by Saudi Arabia and Russia, two of the world’s largest producers, tightening global supplies.

Saudi Arabia extended on Thursday a voluntary oil production cut of one million barrels per day until the end of September, while Russia has also said it will cut its oil exports by 300,000 barrels per day next month.

These cuts came just before a meeting of the Organization of Petroleum Exporting Countries and allies later this session, which makes further cuts from the cartel unlikely.

(Oliver Gray and Peter Nurse contributed to this article.)

Latest comments

You can change the headline now.
you state the obvious and then make your view that has no facts. get a life mate
Very unprofessional...can't keep -latest- stories updated. oh I forgot..it's Friday.
Market bankrupts
When market up, they post negative. When market down, they post positive.
Dumping not jumping?
Totally outdated article.
Jumping negative?! Lol
Don't think red negative percents mean jumping typical outdated Investing.com article.
Imagine if Trump had only 167k jobs? It's be 24 hr corporate media cartel coverage and doomsday
Trump would be bragging how its the most jobs ever created in a month.
Aye, because he'd count only non-mexican employees.
It's 187,000. Get your facts straight.
AMZN is trading at a P/E of 306.93. One year ago the P/E was under 100. The market is not healthier, the valuations are just going through the roof. There will be nothing to catch this market when this bubble collapses.
Reality is a bitter pill to swallow.
No more rate hikes time to buyback underpriced Reits and small caps lol
there will be minimum, 1 more b4 eoy if not 2,,,
Many whining about stocks going up... bears must be butt hurt
did they change the definition of jumping wasn't the Dow and the NASDAQ down well over 300 points yesterday
This article is not from yesterday.  Market is up today.
 Is it though?
everyone saying everyone is lying lol
Still with the FED pivot hopes. I guess oil prices have nothing to do with inflation.
Such a fake explanation.
fake
Amazon is already up over 50% YTD and has a massive P/E that has already factored in 20 years of growth.
Sorry but the part about jobs makes no sense: although a bit soft, how can this job report raise hopes for a pause when both the unemployment number and U6 have ticked down? I have not seen one article on this site about the +300bil in long duration bond issuance that hit the market in the next 2 months. Where do you think the money will come from?
"The July monthly official jobs report said the economy added 187,000 jobs, lower than the 200,000 new positions expected"
Completely Fed driven market, flying into a brick wall. When it happens, everyone will be shocked, I tell you. )
rising down
if it wasn't AMZN this would have been deep red. I just wait for another accounting trick to be announced
yeah but 80% of companies have so far beaten very low expectations, even though those expectations meant lower year over year revenues and earnings
by the time they published this article, Dow deep in red, lol!
im up 10% on some stocks today
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