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U.S. stock markets closed mixed on Friday following mixed jobs data for August. The Dow and the S&P 500 ended in positive territory to start September. On the other hand, the Nasdaq Composite finished in negative zone. For the week, these three major stock indexes ended in green. U.S. stock markets were closed on Monday to celebrate Labor Day.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.3% to close at 34,837.71 after a choppy session. At intraday high, the blue-chip index was up more than 250 points and at intraday low, the index was in red. Notably, 20 components of the 30-stock index ended in positive territory, while 10 in red.
The tech-heavy Nasdaq Composite finished at 14,031.81, declining 3.15 points due to weak performance of large-cap technology stocks. The major loser of the tech-laden index was Warner Bros. Discovery Inc. (WBD - Free Report) . The stock price plummeted 12%. Warner Bros. Discovery currently carries a Zacks Rank #3 (Holdy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 gained 0.2% to end at 4,515.77. However, six out of 11 broad sectors of the benchmark ended in positive territory, while five finished in red. The Energy Select Sector SPDR (XLE) and the Materials Select Sector SPDR (XLB) rose 2.1% and 1.1%, respectively. On the other hand, the Communication Services Select Sector SPDR (XLC) fell 0.9%.
The fear-gauge CBOE Volatility Index (VIX) was down 3.5% to 13.09. A total of 8.9 billion shares were traded on Friday, lower than the last 20-session average of 10.4 billion. The S&P 500 posted 28 new 52-week highs and 20 new 52-week lows. The Nasdaq Composite registered 84 new 52-week highs and 90 new 52-week lows.
Mixed Jobs Data for August
The Department of Labor reported that nonfarm payrolls in August came in at 187,000, exceeding the Zacks Consensus Estimate of 173,000. However, the data for July was revised downward by 30,000 to 157,000 and the data for June was also revised downward by 80,000 to 105,000, marking it the smallest monthly gain since December 2020.
The unemployed rate climbed to 3.8% in August from 3.5% in July. The consensus estimate was 3.6%. August marked the highest monthly unemployment rate since February 2022. This rise was primarily due to an increase in labor force participation rate that rose to 62.8%, the highest since February 2020. The real unemployment rate that counts discouraged workers along with those working part-time for economic reasons, came in at 7.1% in August, the highest since May 2022.
Average hourly wage rate rose 0.2% in August compared with 0.4% in July. The consensus estimate was 0.3%. Year over year, wage rate increased 4.3% in August, below the consensus estimate of 4.4%. Average workweek increased marginally to 34.4 in August from 34.3 in July.
Other Economic Data
The Institute of Supply Management (ISM) reported that the manufacturing PMI (purchasing managers’ index) rose to 47.6 in August from 46.4 in July. The consensus estimate was 46.8. Any reading below 50 indicates contraction in manufacturing activities. August marked the 10th consecutive month of contraction following a 28-month of growth.
Construction spending increased 0.7% in July beating the consensus estimate of 0.5%. The metric for June was revised upward to 0.6% from 0.5% reported earlier.
Weekly Roundup
Last week was a strong one for Wall Street. The Dow and the Nasdaq Composite advanced 1.4% and 3.3%, respectively. Marking their best weekly performance since July. The S&P 500 appreciated 2.5%, posting its best weekly performance since June.
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Stock Market News for Sep 5, 2023
U.S. stock markets closed mixed on Friday following mixed jobs data for August. The Dow and the S&P 500 ended in positive territory to start September. On the other hand, the Nasdaq Composite finished in negative zone. For the week, these three major stock indexes ended in green. U.S. stock markets were closed on Monday to celebrate Labor Day.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.3% to close at 34,837.71 after a choppy session. At intraday high, the blue-chip index was up more than 250 points and at intraday low, the index was in red. Notably, 20 components of the 30-stock index ended in positive territory, while 10 in red.
The tech-heavy Nasdaq Composite finished at 14,031.81, declining 3.15 points due to weak performance of large-cap technology stocks. The major loser of the tech-laden index was Warner Bros. Discovery Inc. (WBD - Free Report) . The stock price plummeted 12%. Warner Bros. Discovery currently carries a Zacks Rank #3 (Holdy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 gained 0.2% to end at 4,515.77. However, six out of 11 broad sectors of the benchmark ended in positive territory, while five finished in red. The Energy Select Sector SPDR (XLE) and the Materials Select Sector SPDR (XLB) rose 2.1% and 1.1%, respectively. On the other hand, the Communication Services Select Sector SPDR (XLC) fell 0.9%.
The fear-gauge CBOE Volatility Index (VIX) was down 3.5% to 13.09. A total of 8.9 billion shares were traded on Friday, lower than the last 20-session average of 10.4 billion. The S&P 500 posted 28 new 52-week highs and 20 new 52-week lows. The Nasdaq Composite registered 84 new 52-week highs and 90 new 52-week lows.
Mixed Jobs Data for August
The Department of Labor reported that nonfarm payrolls in August came in at 187,000, exceeding the Zacks Consensus Estimate of 173,000. However, the data for July was revised downward by 30,000 to 157,000 and the data for June was also revised downward by 80,000 to 105,000, marking it the smallest monthly gain since December 2020.
The unemployed rate climbed to 3.8% in August from 3.5% in July. The consensus estimate was 3.6%. August marked the highest monthly unemployment rate since February 2022. This rise was primarily due to an increase in labor force participation rate that rose to 62.8%, the highest since February 2020. The real unemployment rate that counts discouraged workers along with those working part-time for economic reasons, came in at 7.1% in August, the highest since May 2022.
Average hourly wage rate rose 0.2% in August compared with 0.4% in July. The consensus estimate was 0.3%. Year over year, wage rate increased 4.3% in August, below the consensus estimate of 4.4%. Average workweek increased marginally to 34.4 in August from 34.3 in July.
Other Economic Data
The Institute of Supply Management (ISM) reported that the manufacturing PMI (purchasing managers’ index) rose to 47.6 in August from 46.4 in July. The consensus estimate was 46.8. Any reading below 50 indicates contraction in manufacturing activities. August marked the 10th consecutive month of contraction following a 28-month of growth.
Construction spending increased 0.7% in July beating the consensus estimate of 0.5%. The metric for June was revised upward to 0.6% from 0.5% reported earlier.
Weekly Roundup
Last week was a strong one for Wall Street. The Dow and the Nasdaq Composite advanced 1.4% and 3.3%, respectively. Marking their best weekly performance since July. The S&P 500 appreciated 2.5%, posting its best weekly performance since June.