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U.S. Stocks Bounce Off Lows After Strong Jobs Report Stokes Fed Rate Fears

Stock Markets Aug 05, 2022 09:47AM ET
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© Reuters.

By Liz Moyer

Investing.com -- U.S. stocks have recovered some of their early losses after a much stronger than expected July jobs report raised alarms that the Federal Reserve would continue its aggressive interest rate increases.

At 10:28 AM ET, the Dow Jones Industrial Average was down 32 points, or 0.1%, while the S&P 500 was down 0.1% and the NASDAQ Composite was down 0.1%.

July nonfarm payrolls rose 528,000, more than double the 250,000 expected, while the unemployment rate dipped to 3.5% from 3.6%, where it had been since April. 

Normally a strong report on jobs would be reason to cheer, and investors have lifted stocks in recent weeks amid strong earnings reports. But Wall Street betting odds now favor another three-quarter point rate increase in September, when some expected in recent days that the Fed might ease back.

The central bank policymakers will meet later this month at an annual conference and then have their policy meeting in September. They will have the chance to see more economic data, including inflation data, before that.

Expedia Inc (NASDAQ:EXPE) shares rose nearly 1.5% after the travel booking site reported strong travel demand, helping it beat expectations. Lodging revenue rose nearly 60%.

LYFT Inc (NASDAQ:LYFT) shares jumped 14% after the ride-hailing app said ridership was the highest it’s been since before the pandemic, another positive sign of routines returning to normal.

Warner Bros Discovery Inc (NASDAQ:WBD) shares tumbled 13% after the newly combined media company reported a $3.4 billion loss for the quarter. Restructuring and transaction costs weighed on the bottom line. Streaming growth also slowed.

Oil rebounded, too. Crude Oil WTI Futures rose 1.8% to $90.06 a barrel, while Brent Oil Futures crude was up 1.7%, to $95.73 a barrel. Gold Futures was down 0.8%, to $1,792 an ounce.

U.S. Stocks Bounce Off Lows After Strong Jobs Report Stokes Fed Rate Fears
 

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Comments (12)
Mitchel Pioneer
Mitchel Pioneer Aug 05, 2022 10:58AM ET
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Another day of criminal comedy in the laughingstock of the investing world.  Savvy "investors" magically come out of the woodwork, and "buy" just enough to bring the Ponzi Scheme even, then the buying miraculously ends.  The fraud and criminal manipulation is now as egregious as ever.  There's no boundaries to the FRAUD in this JOKE of a market.
First Last
First Last Aug 05, 2022 10:58AM ET
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The savvy have been long since mid-June.
First Last
First Last Aug 05, 2022 10:58AM ET
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The drama queens have been making the same old tired whining before mid-June AND since mid-June.
Søren Kronberg
Søren Kronberg Aug 05, 2022 10:53AM ET
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The nunbers are wrong
First Last
First Last Aug 05, 2022 10:53AM ET
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The trolls are wrong.
Ronald Warren
Ronald Warren Aug 05, 2022 10:49AM ET
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Monday will be red from profit taking before announcement. Algos will probably pull it out, just like today. Headlines will read how inflation fears derail the rally train.
nick cage
nick cage Aug 05, 2022 10:48AM ET
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Fed funds need to be at 8%. They won't really do anything till after the election
Andrew Sim
Andrew Sim Aug 05, 2022 10:47AM ET
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inflation is just like paying extra tips when everyone is earning more money from the equities so 9% is still affordable
First Last
First Last Aug 05, 2022 10:47AM ET
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I know!  Why care about 9% inflation ...  don't we all make 9% roi per day or week or month in the markets?
Peter Agh
Peter Agh Aug 05, 2022 10:38AM ET
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Stock will ralley no matter what. Inflation go up. China war up. Lower earnings up (higher than intentionaly pushed down expectation). Ukraine war up. Its definition od Bearbmarket rally maddness.
First Last
First Last Aug 05, 2022 10:38AM ET
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Nuclear holocaust coming ... why even bother worrying about the markets?
James Gomez
James Gomez Aug 05, 2022 10:37AM ET
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S&P and DOW haven't broke trend line so I'm not falling for this rally
Ronald Warren
Ronald Warren Aug 05, 2022 10:30AM ET
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So much for today's correction. I guess the market will rally next Wednesday when inflation is still at 9%? Of course!! Full employment means Americans can afford the inflation!!
carlos guo
carlos guo Aug 05, 2022 10:30AM ET
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Full employment does not mean people can afford inflation if wage growth is far below inflation. The most concerning part is that despite low unemployment, we have drop in GDP, 70+ year low manufacturing output, and housing bubble is collapsing. Add on top of this supply chain issues and record inflation.
First Last
First Last Aug 05, 2022 10:30AM ET
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Amercans are overweight & can afford to consume less & buy less *******from the CCP.  Manufacturing jobs has been in downtrrend, NOT manufacturing output.  2022's drop in GDP & housing transaction volume from 2021 will be tiny.
First Last
First Last Aug 05, 2022 10:30AM ET
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Especially tiny when compared with the increases in GDP & housing transaction volume from 2020 to 2021.
Aug 05, 2022 10:20AM ET
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Crazy how nobody is talking about russia and ukraine… russia is winning bigly
Corrupt Fed
Corrupt Fed Aug 05, 2022 10:17AM ET
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No excuse not to keep raising
 
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