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Stock Market Today: Dow Wobbles Ahead of Monthly Jobs Report as Energy Loses Steam

Stock Markets Aug 04, 2022 04:41PM ET
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© Reuters

By Yasin Ebrahim

Investing.com -- The Dow slipped Thursday, as a slump in energy stocks weighed on the broader market ahead of the eagerly awaited monthly jobs report due Friday that will offer fresh insight into the health of the economy.

The Dow Jones Industrial Average fell about 0.3%, or 85 points, the Nasdaq was up 0.41%, and the S&P 500 fell about 0.1%.

The Department of Labor reported Thursday that 260,000 people filed for unemployment insurance in the week ended July 30, up 6,000 from the prior week, but roughly in line with economists’ forecasts.

The data come ahead of Friday’s jobs report that will offer clues on the health of the economy following recent data showing the U.S. economy declined for a second-straight quarter.

Economists expect that the economy generated about 250,000 jobs in July, compared with 372,000 jobs the prior month.

The jobs report will also serve as a readthrough on the Federal Reserve’s likely path of action on monetary policy as the central bank has highlighted the strength of the labor market as evidence that the economy remains robust and is able to withstand further rate hikes. A much better-than-expected jobs report, with a headline number beyond 300,000 may prove bad news for stocks as it'll likely buoy the central bank to follow through on its plan to frontload rate hikes.   

"A very strong headline number, north of 300,000 jobs, will be problematic for markets because it'll certainly give the Fed ammunition to [tighten monetary policy further]," Chief Strategist at Spouting Rock Asset Management Rhys Williams told Investing.com in an interview on Thursday. Average hourly wages will also be closely watched, Rhys added, saying that a surprise fall in wages would "probably be pretty good for equities because it would show that this work is getting accomplished and they don't need to keep raising rates."

Energy was the biggest drag on the broader market, down more than 2% as U.S. oil prices fell below $90 for the first time since Russia invaded Ukraine.

Marathon Oil (NYSE:MRO), Occidental Petroleum (NYSE:OXY), and APA Corporation (NASDAQ:APA) were among the biggest decliners in the sector, with the latter down more than 10%.

Technology, however, cut losses keeping downside in the broader market in check as big tech traded mostly higher.

Elsewhere in tech, Alibaba (NYSE:BABA) gained about 2% after reporting better-than-expected quarterly results despite the lockdowns in China holding back growth.

Consumer discretionary stocks were supported by a jump in Amazon (NASDAQ:AMZN) and Tesla (NASDAQ:TSLA) as investors look ahead to the latter’s shareholder meeting today. At the meeting, shareholders are expected to back the electric vehicle maker’s 3-for-1 stock split.

MGM Resorts (NYSE:MGM), meanwhile, jumped more than 3% after reporting quarterly earnings that missed estimates, but revenue topped expectations after more than doubling in the second quarter.

Booking Holdings (NASDAQ:BKNG), however, fell 1% after reporting mixed quarterly results as earnings beat, but revenue fell short of expectations, sending its share more than 2% lower.

Homebuilders were also in the ascendency, lifting consumer stocks, after data showing mortgage rates fell below 5% to their lowest level since April on expectations for a less hawkish Federal Reserve.

DR Horton (NYSE:DHI) and Lennar (NYSE:LEN) were up more than 3%, while PulteGroup Inc (NYSE:PHM) climbed about 2%

In other news, Coinbase (NASDAQ:COIN) jumped more than 10% after the cryptocurrency exchange inked a partnership with BlackRock (NYSE:BLK) to allow the latter’s institutional clients to invest in bitcoin.

Stock Market Today: Dow Wobbles Ahead of Monthly Jobs Report as Energy Loses Steam
 

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Comments (11)
Mitchel Pioneer
Mitchel Pioneer Aug 04, 2022 8:35PM ET
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"Beat" the criminally rigged, low-ball "estimate" is on a roll.  What's next, manufactured "rallies" under the guise of "lost less than expected?"  Seriously, how much more of the criminal comedy can this market get?
Kerry Ditto
Kerry Ditto Aug 04, 2022 7:23PM ET
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zro chance of recession, 100% chance of bpom
Kerry Ditto
Kerry Ditto Aug 04, 2022 7:23PM ET
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big pop of market
Michael Chew
Michael Chew Aug 04, 2022 7:14PM ET
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every other day reporters writes negative news. market is like a yoyo ?
Kerry Ditto
Kerry Ditto Aug 04, 2022 6:17PM ET
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wti oil price falling below 90 today alone will push up market 5% tomorrow as a result of recognition lag.
soho electronics
soho electronics Aug 04, 2022 6:09PM ET
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nasdaq will go up 500 points tomorrow. 4% baby!!
Mitchel Pioneer
Mitchel Pioneer Aug 04, 2022 5:39PM ET
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The flagrant, criminal inflation of the already grossly overvalued NASDAQ continues.  How much of a criminally manipulated bubble will get blown this time?
Daniel Tal
Daniel Tal Aug 04, 2022 5:37PM ET
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strange that investment.com haven't mention yet the Chinese missiles incident in Taiwan
carlos guo
carlos guo Aug 04, 2022 5:14PM ET
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Don't worry, we are not in a "recession" because the Brandon administration has changed the definition of "recession". A "recession" is now more of a feeling, basically defined as "whenever a Republican is in office", so it cannot be a recession when a democrat is in office. The same way as democrats now let "woman" and "man" not have real definitions, but are more based on whatever you feel. Similarly, the difference between the BLM "protests" and January 6th "insurrection" is based on who is doing it. When democrats call for violence again Supreme Court justices it is "women's rights movement" and when Trump tells people to peacefully march it is "conspiracy to violently overthrow the government". Now everybody be sure to go get your fifth COVID vaccine, of course "vaccine" now being defined as "experimental pharmaceutical that does not prevent you from getting or spreading the virus and wears off after a few months". Definitely not living in 1984.
Scot House
Scot House Aug 04, 2022 5:14PM ET
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They have wickepedia on line 1 for any updates to definitions they dont like.
Bhawin Parmar
Bhawin Parmar Aug 04, 2022 5:00PM ET
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market move up side
Bhawin Parmar
Bhawin Parmar Aug 04, 2022 4:59PM ET
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market move up side
 
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