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U.S. stocks did not move much in either direction and closed mixed on Friday. Investors' enthusiasm on better-than-expected job data was offset by lack of development on next fiscal stimulus and growing geopolitical tensions between the United States and China. The Dow and the S&P 500 ended in green while the Nasdaq Composite finished in the red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) finished in a positive note for six successive days after gaining 0.2% to close at 27,433.48. Notably, 20 components of the 30-stock blue-chip index ended in the green while 10 finished in red.
However, the tech-laden Nasdaq Composite ended in negative territory, reversing its six-day winning streak, to close at 11,010.98, sliding 0.9%. Shares of tech behemoths like Apple Inc. (AAPL - Free Report) and Microsoft Corp. (MSFT - Free Report) dropped 2.3% and 1.8%, respectively. Apple sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meanwhile, the S&P 500 rose 0.1% to end at 3,351.28. This marked the six-day winning streak of the broad-market index. The Financials Select Sector SPDR (XLF) jumped 2.1% while the Technology Select Sector SPDR (XLK) declined 1.5. Notably, nine out of eleven sectors of the benchmark index closed in positive territory while two in negative territory.
The fear-gauge CBOE Volatility Index (VIX) was down 1.9% to 22.21. A total of 9.78 billion shares were traded on Friday, lower than the last 20-session average of 10.4 billion. Advancers outnumbered decliners on the NYSE by a 1.43-to-1 ratio. On Nasdaq, a 1.31-to-1 ratio favored advancing issues.
Better-Than-Expected Jobs Data
The Department of Labor reported that non-farm payrolls in July increased 1.763 million compared with a downwardly revised 4.791 million in June. Consensus estimate was 1.525 million. Although the U.S. economy added 9.3 million jobs in the last three months, the total employment level remained 12.9 million below its February level.
Major sectors that added jobs in July include leisure and hospitality, government, retail, professional and business services, other services, health care, Social assistance, transportation and warehousing and manufacturing with 592,000, 301,000, 258,000, 170,000, 149,000, 126,000, 66,000, 38,000 and 26,000, respectively.
Unemployment rate declined to 10.2% in July from 11.1% in June while the consensus estimate was 10.4%. Real unemployment rate (including discouraged workers and the underemployed holding part-time jobs for economic reasons) fell to 16.5% in July from 18% in June. The total unemployment level stood at 16.3 million in July, a reduction of more than 1.4 million from the previous month.
Average hourly wage rate grew 0.2% in July compared with a decline of 1.3% in June. The consensus estimate was a decline of 0.7%. Year over year, hourly wage rate increased 4.8%. Average work week declined slightly from 34.6 in June to 34.5 in July. However, for manufacturing sector, this metric rose 0.7% in July to 39.7.
Delay in Fresh Fiscal Stimulus
Negotiations between the Republicans and Democrats fell apart. Treasury Secretary Steven Mnuchin told “The president would like us to make a deal, but unfortunately, we did not make any progress today. We discussed the same issues.” Mark Meadows, the White House chief of staff, said: “I’m extremely disappointed that we came up here today just to hear the same thing repeated over and over again, which is the same thing we’ve heard repeated for the last two weeks.”
Geopolitical Tensions Between the U.S. and China
President Donald Trump on Thursday issued executive orders banning U.S. companies from doing business with Chinese tech firms Tencent and ByteDance. Tencent is the owner of messaging app WeChat whine ByteDance controlled widely popular short video-sharing app TikTok. According to CNBC, The Trump administration will impose a fresh round of sanctions on 11 individuals, including Hong Kong leader Carrie Lam.
Weekly Roundup
Last week was a successful for Wall Street as three major stock indexes rallied steadily. The Dow gained 3.8%, its biggest weekly gain since Jun 5. The S&P 500 rose 2.5%, its biggest weekly gain since Jul 2. Meanwhile, the tech-heavy Nasdaq advanced 2.5% too. A series of better-than-expected data for July and expectations for a second round of fiscal stimulus from the U.S. government boosted market participants' sentiments.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Stock Market News for Aug 10, 2020
U.S. stocks did not move much in either direction and closed mixed on Friday. Investors' enthusiasm on better-than-expected job data was offset by lack of development on next fiscal stimulus and growing geopolitical tensions between the United States and China. The Dow and the S&P 500 ended in green while the Nasdaq Composite finished in the red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) finished in a positive note for six successive days after gaining 0.2% to close at 27,433.48. Notably, 20 components of the 30-stock blue-chip index ended in the green while 10 finished in red.
However, the tech-laden Nasdaq Composite ended in negative territory, reversing its six-day winning streak, to close at 11,010.98, sliding 0.9%. Shares of tech behemoths like Apple Inc. (AAPL - Free Report) and Microsoft Corp. (MSFT - Free Report) dropped 2.3% and 1.8%, respectively. Apple sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meanwhile, the S&P 500 rose 0.1% to end at 3,351.28. This marked the six-day winning streak of the broad-market index. The Financials Select Sector SPDR (XLF) jumped 2.1% while the Technology Select Sector SPDR (XLK) declined 1.5. Notably, nine out of eleven sectors of the benchmark index closed in positive territory while two in negative territory.
The fear-gauge CBOE Volatility Index (VIX) was down 1.9% to 22.21. A total of 9.78 billion shares were traded on Friday, lower than the last 20-session average of 10.4 billion. Advancers outnumbered decliners on the NYSE by a 1.43-to-1 ratio. On Nasdaq, a 1.31-to-1 ratio favored advancing issues.
Better-Than-Expected Jobs Data
The Department of Labor reported that non-farm payrolls in July increased 1.763 million compared with a downwardly revised 4.791 million in June. Consensus estimate was 1.525 million. Although the U.S. economy added 9.3 million jobs in the last three months, the total employment level remained 12.9 million below its February level.
Major sectors that added jobs in July include leisure and hospitality, government, retail, professional and business services, other services, health care, Social assistance, transportation and warehousing and manufacturing with 592,000, 301,000, 258,000, 170,000, 149,000, 126,000, 66,000, 38,000 and 26,000, respectively.
Unemployment rate declined to 10.2% in July from 11.1% in June while the consensus estimate was 10.4%. Real unemployment rate (including discouraged workers and the underemployed holding part-time jobs for economic reasons) fell to 16.5% in July from 18% in June. The total unemployment level stood at 16.3 million in July, a reduction of more than 1.4 million from the previous month.
Average hourly wage rate grew 0.2% in July compared with a decline of 1.3% in June. The consensus estimate was a decline of 0.7%. Year over year, hourly wage rate increased 4.8%. Average work week declined slightly from 34.6 in June to 34.5 in July. However, for manufacturing sector, this metric rose 0.7% in July to 39.7.
Delay in Fresh Fiscal Stimulus
Negotiations between the Republicans and Democrats fell apart. Treasury Secretary Steven Mnuchin told “The president would like us to make a deal, but unfortunately, we did not make any progress today. We discussed the same issues.” Mark Meadows, the White House chief of staff, said: “I’m extremely disappointed that we came up here today just to hear the same thing repeated over and over again, which is the same thing we’ve heard repeated for the last two weeks.”
Geopolitical Tensions Between the U.S. and China
President Donald Trump on Thursday issued executive orders banning U.S. companies from doing business with Chinese tech firms Tencent and ByteDance. Tencent is the owner of messaging app WeChat whine ByteDance controlled widely popular short video-sharing app TikTok. According to CNBC, The Trump administration will impose a fresh round of sanctions on 11 individuals, including Hong Kong leader Carrie Lam.
Weekly Roundup
Last week was a successful for Wall Street as three major stock indexes rallied steadily. The Dow gained 3.8%, its biggest weekly gain since Jun 5. The S&P 500 rose 2.5%, its biggest weekly gain since Jul 2. Meanwhile, the tech-heavy Nasdaq advanced 2.5% too. A series of better-than-expected data for July and expectations for a second round of fiscal stimulus from the U.S. government boosted market participants' sentiments.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>