Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Stock Market Today: Dow Rises on Energy, Banks Boost After Blowout Jobs Dent Tech

Stock Markets Aug 05, 2022 04:20PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Yasin Ebrahim

Investing.com -- The Dow racked up gains late into the close to end higher Friday, on a jump in banking and energy stocks, but surging Treasury yields following a blowout jobs report weighed on tech keeping gains in the broader market in check.

The Dow Jones Industrial Average rose 0.23%, or 76 points, the Nasdaq was down 0.50%, and the S&P 500 fell 0.18%.

The U.S. economy added 528,000 new jobs in July, topping consensus for 250,000 new jobs in June, while the unemployment rate unexpectedly fell to 3.5%.

The jobs report also flagged an uptick in wage pressures that will likely keep inflation elevated, and give the Federal Reserve the green light to continue front-loading rate hikes.

Traders are betting the Federal Reserve’s peak interest rates, or the so-called terminal rate, is at 3.6%, but this won’t be enough to stem inflation given the strong labor market, Jefferies said.

“The terminal rate currently priced into the curve looks woefully inadequate. We expect the Fed to keep hiking through Q1’23 until they push the funds rate to 4-4.25%,” Jefferies added.

If the Fed turns more hawkish than expected, “the market will take that as a big negative, because right now it's pricing in a Fed funds rate that is nearer to the end of cycle,” Chief Market Strategist David Keller at StockCharts told Investing.com in an interview on Friday.

Two-year U.S. Treasury yields, which are sensitive to Fed rate hikes, jumped to its highest level in nearly two months. The 10-year yield also soared, rising more than 6%.

Growth sectors of the market, which tend to be unattractive in a rising rate environment, were the hardest hit with big tech and consumer discretionary stocks leading the downside.

Tesla (NASDAQ:TSLA) led the move lower in consumer stocks, down 6% after shareholders backed the company’s proposed 3-for-1 stock split.

Energy rose 2% to pare some losses from a day earlier as oil prices rebounded as fears about a recession hurting demand eased following the stronger jobs report. 

Banking stocks including JPMorgan Chase & Co (NYSE:JPM), meanwhile, led financials higher as rising rates tend to support lending margins.      

The earnings front, meanwhile, served up mixed quarterly results with LYFT the standout performer on the day following stronger than expected earnings.

LYFT (NASDAQ:LYFT) jumped 16% after the ride-hailing company reported a surprise quarterly profit as demand jumped to pre-pandemic levels.

AMC Entertainment (NYSE:AMC) reported a slightly wider-than-expected quarterly loss and announced that it would issue dividend to all common shareholders in the form of preferred shares. Its shares jumped nearly 19%.

The move in effect “creates a two-for-one stock split, with half listed under 'AMC' and half under 'APE' [stock ticker],” Wedbush said.  

Block (NYSE:SQ) fell 2% despite delivering quarterly results that beat on both the top and bottom lines as a 34% decline in bitcoin revenue held back growth.

Stock Market Today: Dow Rises on Energy, Banks Boost After Blowout Jobs Dent Tech
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (8)
JIM VETTER
JIM VETTER Aug 06, 2022 9:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
GET RID OF THE BOTS!!!
Jim Hernandez
Jim Hernandez Aug 05, 2022 10:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The rate hikes have done nothing to lower inflation, in fact, seems to be adding fuel to the fire. This shows that the fed needs to move more aggressively and do 1% sept and stay with 1% until this gets turned around.
goutham kumar
goutham kumar Aug 05, 2022 9:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
FOMC the confidence it needs to push ahead aggressively with its fight against inflation. At least a 50 bps rate hike at the September 20-21 FOMC meeting seems likely at this point in time, and yet another 75 bps hike could be in store if inflation over the next two CPI reports shows no signs of trending lower.
David Farrell
David Farrell Aug 05, 2022 7:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
SQ had a 34% decline in crypto revenue, the overall cash app performance outside of crypto increased and did not have a 34% slump
Buy And Sell
Buy And Sell Aug 05, 2022 5:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Warning huge crash for stocks coming on the near future. Probably in the authumn, due to massive increase on jobs report, salary increase and INFLATION will now explode...sorry this is what i have warned about. This crash will be massive and fundamental....
Samson Ling Joon Lee
Samson Ling Joon Lee Aug 05, 2022 5:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
what is authumn? a fifth season?
Kris Jay
Kris Jay Aug 05, 2022 5:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
10% of the employment hike was government workers.  and with $80B for IRS coming that will be another 20% of employment by the government.    We are becoming Italy and Greece, the only good job you can get will be working for the government.  In just 18 months we have really gone down the wrong path.  We used to send food to China in the 60s now they threaten us and launch missiles over our allies while we sit and watch.
Brad Albright
Brad Albright Aug 05, 2022 5:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Aren't you glad Pelosi wasn't intimidated? Aren't you glad Biden and the West united to oppose Russia's illegal and unjustified invasion? Aren't you glad Biden is reinvigorating relations with our Pacific allies? Aren't you glad your assertion that there will be another 20% of employment by the government is just something you pulled out of your shoe?
carlos guo
carlos guo Aug 05, 2022 5:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Brad Albright  4 years of Brad crying "OMG TRADE WAR! TRUMP IS GOING TO START A TRADE WAR WITH CHINA!" under Trump, Pelosi goes and risks start WW3 to help her insider trading stock positions and Brad says "OMG SO STUNNING AND BRAVE!" meanwhile Brandon's approval at all time lows and failure after failure abroad. Handed Afghanistan over to the Taliban and 9/11 terrorists literally just hanging out on the balcony chilling, or what they called "religious astute scholars" when Trump was in office.
Stanley Tey
Stanley Tey Aug 05, 2022 5:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Shame on Pelosi. She went there for her personal gain and achieved nothing for Taiwan or anybody. After she left, China started war game surrounding Taiwan. Did US sent aircraft carrier to stop China or just bark ?
Goh Kok son
Goh Kok son Aug 05, 2022 5:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
common man people are now mordent and educated not thinking of killing and fighting one another if a war start what personal gain you achieve
Goh Kok son
Goh Kok son Aug 05, 2022 5:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
imagine by John Lennon so they can understand
carlos guo
carlos guo Aug 05, 2022 4:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"US Consumer Borrowing Jumps by More Than $40 Billion, Second-Most Ever"...record inflation, record debt, GDP shrinking, inflation outpacing wage growth. People working 2-3 jobs to put the amount of food on the table under Brandon as 1 job provided under Trump. Meanwhile Brandon sending billions overseas and hiring 87,000 more people to the IRS to shake out your pockets. This is why socialism ends in breadlines and gualgs.
Mitchel Pioneer
Mitchel Pioneer Aug 05, 2022 4:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
DOW rises on pure criminal manipulation.  Another show for the worldwide investment community, brought to you by the US Ponzi Scheme, greatest financial fraud in history, and biggest investment JOKE in the world.
Ronald Warren
Ronald Warren Aug 05, 2022 4:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Preach On! Nothing to add.
Kris Jay
Kris Jay Aug 05, 2022 4:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
i get it that the retail investor is manipulated, especially by the administration and media supporting it, but give it a rest on the Ponzi scheme.  dont need to post it every day.
Dave Jones
Dave Jones Aug 05, 2022 4:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
But it's 100% correct. It is a ponzi scheme with no way out. We've reached the limit. Only buyers are fed and institutions with money created from thin air. An increase in the money supply is one (really good) definition of inflation therefore they'll print to inflate to keep it going but at the end of the day it's still all going to be worthless 6 billion or 6 cents was pretty much the same thing in Zimbabwe. or 6 marks v 6 million marks in Weimar Germany. I don't think they realise it yet.
Tiberius Augustus
Tiberius Augustus Aug 05, 2022 4:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Robbery in daylight not even night
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email