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Wall Street closed a turbulent week on Friday as the weakening labor market dismissed a Goldilocks economy and jacked up recession fearmongering. The Nasdaq ended in correction territory in the last trading session, while the Dow and the S&P 500, too, finished in the red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 1.5% or 610.71 points to close at 39,737.26. Notably, 19 components of the 30-stock index ended in negative territory, while 11 ended in positive zone.
The tech-heavy Nasdaq Composite declined 417.98 points, or 2.4%, to close at 16,776.16.
The S&P 500 tumbled 100.12 points, or 1.8%, to close at 5,346.56. Eight of the 11 broad sectors of the benchmark index closed in the red. The Consumer Discretionary Select Sector SPDR (XLY), the Technology Select Sector SPDR (XLK) and the Energy Select Sector SPDR (XLY) fell 3.7%, 2.8% and 2.6%, respectively.
The fear-gauge CBOE Volatility Index (VIX) shot up 25.8% to 23.39. A total of 14.75 billion shares were traded on Friday, higher than the last 20-session average of 11.97 billion. The S&P 500 posted 62 new 52-week highs and 15 new lows; the Nasdaq Composite recorded 34 new highs and 297 new lows.
U.S. Jobs Report Falls Short Amid Economic Slowdown
The U.S. Employment report for July, recently released by the Bureau of Labor Statistics, showed a weaker-than-expected labor market.
Nonfarm payrolls increased by 114,000, falling short of the consensus estimate of 180,000. June’s figures were also revised down to 179,000 from the previously reported 206,000. The unemployment rate rose to 4.3%, marking the highest level since October 2021. Average hourly earnings grew by 0.2%, below the expected 0.3%, while year-over-year wage growth of 3.6% missed the 3.7% forecast, marking the slowest pace since May 2021. Furthermore, the average workweek decreased slightly from 34.3 hours in June to 34.2 hours.
The Federal Reserve has kept its lending rate at the highest level since 2001 to tackle inflation. Earlier this week, following the central bank’s decision to keep interest rates unchanged, Fed Chair Jerome Powell acknowledged progress on inflation and hinted that rate cuts could occur as soon as September. According to the CME Groups FedWatch tool, there is now about a 78% probability that the Fed’s policy committee will reduce the benchmark rate by half a percentage point at its meeting in September.
Mixed Earnings
Chart Industries, Inc. (GTLS - Free Report) reported second-quarter 2024 adjusted earnings of $2.18 per share, missing the Zacks Consensus Estimate of $ 2.57 per share. The equipment maker company generated total revenues of $1.04 billion, lagging the Zacks Consensus Estimate of $1.11 billion. Its shares ended 18.1% lower on Friday.
Cinemark Holdings, Inc. (CNK - Free Report) reported second-quarter 2024 adjusted earnings of $0.32 per share, beating the Zacks Consensus Estimate of $0.07 per share. This Leisure and Recreation Services company generated total revenues of $734.2 million, beating the Zacks Consensus Estimate of $693.2 million. Consequently, shares of Cinemark Holdings returned 7.6%. Cinemark Holdings carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Weekly Summary
For the week, the Nasdaq fell by 0.03%, while the S&P 500 and Dow both dipped by 0.02%.
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Stock Market News for Aug 5, 2024
Market News
Wall Street closed a turbulent week on Friday as the weakening labor market dismissed a Goldilocks economy and jacked up recession fearmongering. The Nasdaq ended in correction territory in the last trading session, while the Dow and the S&P 500, too, finished in the red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 1.5% or 610.71 points to close at 39,737.26. Notably, 19 components of the 30-stock index ended in negative territory, while 11 ended in positive zone.
The tech-heavy Nasdaq Composite declined 417.98 points, or 2.4%, to close at 16,776.16.
The S&P 500 tumbled 100.12 points, or 1.8%, to close at 5,346.56. Eight of the 11 broad sectors of the benchmark index closed in the red. The Consumer Discretionary Select Sector SPDR (XLY), the Technology Select Sector SPDR (XLK) and the Energy Select Sector SPDR (XLY) fell 3.7%, 2.8% and 2.6%, respectively.
The fear-gauge CBOE Volatility Index (VIX) shot up 25.8% to 23.39. A total of 14.75 billion shares were traded on Friday, higher than the last 20-session average of 11.97 billion. The S&P 500 posted 62 new 52-week highs and 15 new lows; the Nasdaq Composite recorded 34 new highs and 297 new lows.
U.S. Jobs Report Falls Short Amid Economic Slowdown
The U.S. Employment report for July, recently released by the Bureau of Labor Statistics, showed a weaker-than-expected labor market.
Nonfarm payrolls increased by 114,000, falling short of the consensus estimate of 180,000. June’s figures were also revised down to 179,000 from the previously reported 206,000. The unemployment rate rose to 4.3%, marking the highest level since October 2021. Average hourly earnings grew by 0.2%, below the expected 0.3%, while year-over-year wage growth of 3.6% missed the 3.7% forecast, marking the slowest pace since May 2021. Furthermore, the average workweek decreased slightly from 34.3 hours in June to 34.2 hours.
The Federal Reserve has kept its lending rate at the highest level since 2001 to tackle inflation. Earlier this week, following the central bank’s decision to keep interest rates unchanged, Fed Chair Jerome Powell acknowledged progress on inflation and hinted that rate cuts could occur as soon as September. According to the CME Groups FedWatch tool, there is now about a 78% probability that the Fed’s policy committee will reduce the benchmark rate by half a percentage point at its meeting in September.
Mixed Earnings
Chart Industries, Inc. (GTLS - Free Report) reported second-quarter 2024 adjusted earnings of $2.18 per share, missing the Zacks Consensus Estimate of $ 2.57 per share. The equipment maker company generated total revenues of $1.04 billion, lagging the Zacks Consensus Estimate of $1.11 billion. Its shares ended 18.1% lower on Friday.
Cinemark Holdings, Inc. (CNK - Free Report) reported second-quarter 2024 adjusted earnings of $0.32 per share, beating the Zacks Consensus Estimate of $0.07 per share. This Leisure and Recreation Services company generated total revenues of $734.2 million, beating the Zacks Consensus Estimate of $693.2 million. Consequently, shares of Cinemark Holdings returned 7.6%. Cinemark Holdings carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Weekly Summary
For the week, the Nasdaq fell by 0.03%, while the S&P 500 and Dow both dipped by 0.02%.