US stocks fall after massive miss on August jobs report

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US fell Friday after the August jobs report badly missed economist expectations.

The US added 235,000 payrolls in August, badly missing the median estimate of 733,000 added jobs. Meanwhile the unemployment rate fell to 5.2% from 5.4%, matching estimates. The month demonstrated the influence the coronavirus Delta variant had on the labor market recovery.

The report has prompted hopes that the Fed will continue its support for the economy for longer.

“The Fed has hung its hat on the assumption that people are starting to return to work, and unfortunately today’s number will be a disappointment to them,” said Seema Shah, Principal Global Investors’ chief strategist. “After having indicated a taper was likely in the next few months, August payrolls perhaps throws that into disarray.”

Here’s where US indexes stood at the 9:30 a.m. ET open on Friday:

Shah said that while inflation has clearly met levels that indicate “substantial further progress” in the economy, it doesn’t appear to have made a sufficient impression on the Federal Reserve. The US central bank appears much more focused on the employment recovery, and today’s disappointing number may sway the Fed to not scale back its asset purchases until November, or potentially later, she added.

“Friday’s weaker-than-expected jobs puts less pressure on the Fed to taper its stimulus, which is likely to provide a short-term boost for stocks. The stock market loves stimulus and any indication that the Fed will remain fully accommodative is good news for investors,” said Jay Pestrichelli, CEO of investment firm ZEGA Financial.

Warren Buffett’s deputy snowballed his retirement account from $70,000 to $264 million in under 30 years. Ted Weschler explained his strategy, including how he shrugged off investment losses and amassed wealth in a recent interview.

Bitcoin held steady at around $50,800 Friday morning after breaking the $50,000 barrier on Thursday.

West Texas Intermediate crude jumped as much as 0.60%, to $70.40 per barrel. Brent crude, oil’s international benchmark, gained 0.78%, to $73.60 a barrel.

Gold climbed 0.92%, to $1,828.10 per ounce.

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S&P 500, Nasdaq close at records as tech stocks soar on investor optimism

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Traders work on the floor at the opening bell of the Dow Industrial Average at the New York Stock Exchange on March 18, 2020 in New York.

US stocks closed mostly higher with the S&P 500 and Nasdaq hitting record highs. The Dow pulled back slightly to finish in the red. Shares of Apple rose 3.2% to hit an all-time high, while Amazon, Facebook, and Tesla all gained over 2%.

The S&P 500 is up approximately 20% for the year without so much as a 5% pullback, noted Ryan Detrick, chief market strategist for LPL Financial. The benchmark index has made 53 new all-time highs so far. Only two other years- 1964 and 1995-saw more than 50 new highs before August was over, Detrick said.

Here’s where US indexes stood at the 4:00 p.m. ET close on Monday:

In a long-awaited speech Friday, Fed chair Jerome Powell reiterated that the central bank could start tapering asset purchases in 2021 but will likely not raise interest rates until at least 2023 as it continues to monitor the progress of the economic recovery out of the pandemic.

The tech rally that was in full view today still has room to run, according to Wedbush’s Dan Ives. The analyst said that further multiple expansion and strong fundamentals will boost tech stocks up another 7%-10% for the rest of 2021. Additionally, a rotation out of Chinese stocks amid ongoing regulatory concerns will create a “nirvana set up” for FAANG names.

A new roster of meme stocks is emerging. and Vinco Ventures extended their three-day rallies to over 100% on Monday.

Robinhood tumbled 7% after SEC chairman Gary Gensler told Barron’s banning payment for order flow is “on the table.”

Affirm soared as much as 43% in early morning trading after the buy-now-pay-later fintech partnered with Amazon. Amazon customers will now be able to split purchases over $50 into monthly payments.

Legendary investor John Paulson, whose bet against the housing market in 2008 made him a billionaire, said cryptocurrencies are in a bubble and will eventually prove to be worthless.

West Texas Intermediate crude gained 0.38% to $69. Brent crude, oil’s international benchmark, rose 0.77%, to $73.26 per barrel.

Gold fell 0.35% to $1,813.10 per ounce.

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US stocks mixed as investors digest higher than expected jobless claims and await Powell’s speech

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A trader works on the floor of the New York Stock Exchange, December 1, 2008. U.S stocks stayed near session lows on Monday after Federal Reserve Chairman Ben Bernanke said that the U.S. economy remained under considerable stress.

US stocks were largely flat Thursday morning as traders awaited Fed chair Jerome Powell’s speech at the Jackson Hole Symposium and digested higher than expected jobless claims. The S&P 500 slipped tk% after hitting its 51st record high for 2021 the previous day.

The benchmark index is currently on pace for 78 new highs in 2021, which would be an all-time record year, according to LPL Financial Chief Market Strategist Ryan Detrick.

Investors are laser focused this week on Powell’s speech at the virtual symposium of central bankers on Friday. The head of the US central bank’s words will be scrutinized for any clues about the Fed’s outlook on tapering its asset purchases.

Here’s where US indexes stood at the 9:30 a.m. ET open on Thursday:

On the economic data front, weekly jobless claims reached an unadjusted 353,000 last week, the Labor Department announced Thursday morning. That compares to a median estimate of 350,000 claims from economists surveyed by Bloomberg. It was the first increase in claims in 5 weeks.

Not all on Wall Street expect the Fed meeting to make waves within markets. Paolo Zanghieri, senior economist of Generali Investments said that Powell’s speech will be short on tapering details amid persistent risk from rising COVID-19 cases.

“If the Delta variant does not prove too harmful, we expect a clear warning on imminent tapering in September, an announcement in November, followed by an implementation in December,” he said. “Powell is likely to take the opportunity for further clarifying some key aspects of the Fed policy, especially stressing the distinction between asset purchase tapering and rate hikes.”

Bitcoin traded around $47,000 after crossing it’s highest point since Mid-May earlier this week.

West Texas Intermediate crude fell 0.99% to $67.68 per barrel. Brent crude, oil’s international benchmark, slid 0.76%, to $71.70 per barrel.

Gold slipped 0.32% to $1,785 per ounce.

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US stocks mixed as retail sales data shows spending slowed more than expected in July

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US stocks were mixed on Tuesday after spending at retailers and restaurants fell more than expected in July and concerns mounted over the pace of the economic recovery.

Retail sales fell 1.1% to $617.7 billion last month, the Census Bureau announced Tuesday morning. Economists surveyed by Bloomberg expected sales to fall 0.2% to roughly $620 billion.

Investors are also adding the Afghanistan crisis to a growing list of factors that could impact stock returns, said Nigel Green, chief executive and founder of deVere Group. The fallout from the delta variant of COVID-19, concerns about peak earnings, disappointing Chinese economic data, and how this week’s Fed minutes will impact policy are among the other concerns.

“There will be questions regarding stability in the Middle East, the global influence of the U.S. and the mounting pressure on Biden, the prospect of increasing international terror threats, and the growing dominance of China’s renminbi,” Green said.

Federal Reserve Chairman Jerome Powell will host a town hall with educators and students today at 1:30 pm ET. Traders will be listening for the Fed chair to drop any hints about changes to economic policy.

Here’s where US indexes stood at the 9:30 a.m. ET open on tk:

Boston Fed President Eric Rosengren added fuel to the debate over when the Federal Reserve will begin tapering late Monday, when he said that continued job gains could give the central bank reason to cut its monthly asset purchases.

“If we get another strong labor market report, I think that I would be supportive of announcing in September that we are ready to start the taper program,” the Fed policymaker told CNBC.

West Texas Intermediate crude slipped 0.37% to $67.05 per barrel. Brent crude, oil’s international benchmark, slid 0.1%, to $69 per barrel.

Gold was flat at $1791 per ounce.

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US stocks slip as private payroll data stokes concerns of stalling labor-market recovery

NYSE Trader
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 9, 2020.

  • US stocks slipped Wednesday as investors digested a report showing US companies added fewer jobs than expected in July.
  • Robinhood is soaring in early morning trading, extending gains well above its IPO price for the second day in a row.
  • SEC Chair Gary Gensler is calling on Congress to grant the agency more authority to regulate crypto.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stocks slipped Wednesday as investors digested a report showing US companies added fewer jobs than expected in July, suggesting the continued struggle to hire workers amid the economic recovery.

US private-sector businesses added 330,000 jobs in July, ADP said in its monthly hiring report. The print fell well short of the 683,000-payrolls forecasted by economists, but still marked a seventh straight gain.

General Motors fell in premarket trading after reporting earnings that missed analyst estimates. Meanwhile Robinhood jumped as much as 15% in early morning trading as the newly public stock extends gains well above its IPO price for a second day.

Here’s where US indexes stood at the 9:30 a.m. ET open on Wednesday:

Bitcoin traded around $38,600 Wednesday morning, but one technical analyst sees the crypto jumping to $51,000 in a few weeks. Fairlead Strategies’ Katie Stockton said in a note technicals are signaling a risk-on environment for bitcoin.

In other cryptocurrency news, SEC Chair Gary Gensler urged Congress to give the agency more authority to regulate the $1.6 trillion cryptocurrency market. “Frankly, at this time, it’s more like the Wild West,” said Gensler in a speech for the Aspen Security Forum. The SEC chief also told Bloomberg that investors need more protection against fraud and the SEC is looking at at least seven areas of the market, including DeFi and stablecoins.

West Texas Intermediate crude fell 1.88%, to $69.23 per barrel. Brent crude, oil’s international benchmark, slid 1.46%, to $71.35 per barrel.

Gold climbed as much as 0.93%, to $1831 per ounce.

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US stocks close at record highs as investors cheer blockbuster earnings

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US stocks finished the week strong with all three major indexes closing at records Friday as investors cheered blockbuster tech earnings and looked towards next week’s Fed meeting.

Shares of Snap soared 23% after the social media app exceeded earnings expectations. Twitter also gained after beating estimates, and Bank of America analysts said the stock could rise another 30% as the social media platform stands to see further growth in advertising sales which have been recovering after the onset of the coronavirus pandemic. The good news lifted tech peers Facebook and Google both by more than 3%.

Here’s where US indexes stood at the 4:oo p.m. ET close on Friday:

The blank-check company backed by billionaire Thomas Barrack withdrew its application for an initial public offering Friday, just days after the 74-year-old was arrested and charged with seven felony counts involving lobbying the Trump administration on behalf of the UAE.

Stocks in Asia were mostly lower earlier Friday over concerns of tighter regulation. Regulators in China are said to be considering severe sanctions on Didi Global following its US IPO. The ride-hail giant has fallen a stunning 52% since going public.

Also, a Bloomberg report that China is considering turning tutoring companies into non-profitspushed Chinese education stocks lower Friday morning.

The 10-year US Treasury yield climbed 1.8 basis points to 1.285% after hitting a five month low at the start of the week.

Bitcoin hovered just above $32,000.

West Texas Intermediate crude gained 0.21%, to $72.06 per barrel. Brent crude, oil’s international benchmark, gained 0.39%, to $74.08 per barrel.

Gold was little changed around $1,802.30.

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US stocks slump as investors digest inflation data showing prices surged in June

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US stocks fell Tuesday after inflation data showed prices rose more than expected in June.

The Consumer Price Index increased 0.9% in June, far higher than Bloomberg’s consensus estimate among economists of 0.5%. The reading marked the largest one-month change since June 2008.

On a year-over-year basis, prices increased 5.4%, higher than economists’ expectations for a 4.9% year-over-year increase. However, June 2020 was the lowest point for Core CPI during the pandemic shutdown, so year-over-year increases are expected.

Here’s where US indexes stood at the 4 p.m. ET close on Tuesday:

Mike Lowengart, E*Trade Financial managing director of investment strategy, said that the real question on investors’ minds after the CPI read is how long hot inflation numbers will last.

“Transitory has been the buzzword when it comes to inflation but it’s a tricky phrase. Does it mean a few months, a year, or even longer? Every successive high inflation read will make it harder and harder for the Fed to remain accommodative. And on the markets front, we may experience a bit of a tug of war as traders balance the economic data with strong bank earnings beginning to roll in,” he said.

Elsewhere in markets, Amazon, Apple, Alphabet, and Microsoft all hit record intraday highs today. The stalwarts are helping propel the S&P 500 to new all-time highs.

The benchmark index has notched 39 record closing highs through Monday’s session, according to Bespoke Investment Group. If it keeps up its current pace, it could close out 2021 with 74 record closing highs, the second-most of all time, Bespoke said.

The yield on the US 10-year Treasury gained 4.7 basis points to 1.41%.

Bank earnings began this morning, with JPMorgan and Goldman Sachs beating expectations.

West Texas Intermediate crude gained 1.58% to $75.27 per barrel. Brent crude, oil’s international benchmark, climbed 1.77%, to $76.49 per barrel.

Gold was flat at $1,807.2 per ounce.

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Nasdaq closes at a record as Fed’s Powell reiterates that rising inflation is transitory

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US stocks ticked higher after the Federal Reserve chair reiterated his outlook that inflationary pressures will be transitory. In a testimony to the House Select Subcommittee Tuesday, Jerome Powell suggested that he had no fears that prices will come down, but it’s hard to say when bottlenecks are going to disappear. He also said that strong job creation should arrive in the fall.

Almost every sector in the S&P 500 ended in the green, while Microsoft hit a $2 trillion market cap for the first time ever. It’s the second-largest public company by market capitalization behind Apple ($2.3 trillion). Gains in tech stocks propelled the Nasdaq to a record closing high.

Here’s where US indexes stood at the 4 p.m. ET close on Tuesday:

The cryptocurrency space continued to tumble. Bitcoin hit its lowest point since January before picking back up $32,000. t’s now facing a make-or-break moment at the key technical support level of $30,000. Ether dropped 14% on Tuesday to a 24-hour low of $1,732.85, Ripple’s XRP dropped nearly 25%, and dogecoin has fallen 47% in the last seven days.

Meanwhile, investors’ view towards cryptocurrencies remains extremely polarized, according to a survey conducted by JPMorgan. The survey found that 51% of the investors believe cryptocurrencies are here to stay, while 49% of survey respondents believe cryptocurrencies are either “rat poison” (33%) or a temporary fad (16%).

A return to 1970s-style inflation is unlikely given deeper deflationary impulses, saidBridgewater co-CIO Bob Prince in a recent interview. The head of the world’s biggest hedge fund expects future months will bring some “moderate” inflation, rather than the double-digit price hikes that pummeled America in the 1970s.

West Texas Intermediate crude fell 0.79% to $73.08 per barrel. Brent crude, oil’s international benchmark, jumped above $75 a barrel for the first time in two years this morning. It now sits at $74.90.

Gold slipped 0.17% to $1,779.80 per ounce.

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US stocks trade mixed as investors await inflation outlook from the Fed

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US stocks were mixed Wednesday as investors paused before a key decision by the Federal Reserve coming later in the day.

The Federal Open Market Committee is expected to hold interest rates unchanged and announce no changes to its asset purchases when the decision is released at 2 p.m ET. Robertson Stephens Wealth Management chief economist Jeanette Garretty expects the central bank to continue to avoid announcing a concrete plan to change its bond-buying program.

“This FOMC meeting is likely to be the most important step, signaling to markets that the reduction of QE is conclusively on the discussion agenda, while avoiding any indication of ‘when’ or ‘how,'” she said. “I believe that economic conditions allow, perhaps require, the Fed to scale back QE but I believe that the Fed wishes to still keep this action firmly in ‘maybe’ territory. As such, the wordsmithing of the meeting announcements will be considerable – and tricky.”

Here’s where US indexes stood at the 9:30 a.m. ET open on tk:

The Fed is also expected to speak on the state of the US economy.

“In the last meeting, there was an expression of cautious optimism. In this meeting, I would expect the language to be more one of confirmed optimism, albeit continuing to emphasize the still-large number of unemployed and partially employed and the incomplete vaccination of the population. Investors may be looking for some statement regarding inflation, but I believe the Fed will maintain its viewpoint that current price pressures are transitory,” Garretty added.

Michael Burry is back on Twitter and warning of the biggest market bubble in history. It seems Burry’s concerns only grew during his 10-weak hiatus from Twitter.

Initial public offerings in the US this year have already broken 2020’s record with six months still go in the year. In the first half of this year alone, IPOs have raised $171 billion, surpassing last year’s record $168 billion, with the help of the Federal Reserve’s low interest rate policies.

The low rate environment has also helped the rise of mergers and acquisitions activity, said Goldman Sachs global head of M&A structuring. In a Monday interview, David Dubner he is seeing no signs of stopping for a “superbloom” of M&A activity and separation activity.

West Texas Intermediate crude paused its rally and was down 0.2% to $71.98. Brent crude, oil’s international benchmark, climbed 0.6%, to $74.73 per barrel, at intraday highs.

Gold climbed as much as 0.1%, to $1,863 per ounce.

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S&P 500, Nasdaq close at records as investors shrug off inflation concerns

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The S&P 500 recorded a record high for the second trading day in a row while a rally in tech stocks helped lift the Nasdaq to a record high. Investors are awaiting a key Fed decision later this week. Technology was the best performing sector in the S&P 500, with Apple gaining 2% and Facebook climbing over 1%. The yield on the US 10-yr Treasury rose to 1.5% after hitting a three month low last week.

Investors are eagerly awaiting for signals from the US Federal Reserve later this week about a timetable for scaling back ultra-accommodative policies. The decision is due Wednesday, with most economists anticipating the central bank will leave its policy mostly unchanged.

Here’s where US indexes stood at the 4 p.m. ET close on Monday:

Strategists can’t seem to agree on whether inflation will be transitory or not, despite the Fed insisting it will be short lived.

In an interview with CNBC on Monday, billionaire investor Paul Tudor Jones said he’s preparing to go “all in” on his inflation trade if the Fed remains unconcerned about rising prices. But others note that last week’s CPI data was elevated due to year-over-year comparisons.

“The largest increases were limited to used vehicles, energy and airfare,” said Nuveen’s Saira Malik. “Given the lack of evidence of rampant, widespread inflation, we remain confident in the Fed’s ability to stay on-message, even if discussions of tapering come a few quarters earlier than originally expected.”

Elsewhere in markets, Lumber prices fell as much as 6% on Monday to briefly trade below $1,000 per thousand board feet for the first time since late March.

Bitcoin rose above $40,000 after Elon Musk suggested Tesla would accept payment in cryptocurrency once mining can be done using cleaner energy.

West Texas Intermediate crude gained as much as 1.2%, to $71.78 per barrel. Brent crude, oil’s international benchmark, rose 1.3%, to $73.64 per barrel, at intraday highs.

Gold fell as much as 1.8%, to $1845.70 per ounce.

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