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U.S. stock markets closed mostly higher on Friday as cyclical stocks moved the Dow and S&P 500 higher to close at fresh record highs. The confidence of market participants was boosted by a better-than-expected non-farm payroll employment data for July. The Dow and S&P 500 closed the day in green while the Nasdaq Composite ended the day in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.4% or 144.26 points, closing at 35,208.51, a fresh closing high, continuing its gains from Thursday. Notably, 17 components of the 30-stock index ended in green while 13 finished the day in red.
The tech-heavy Nasdaq Composite closed the day at 14,835.76, down 0.4%, reversing its gains from previous sessions, on the back of weak performance by large-cap technology stocks. The S&P 500 rose 0.2%, closing the day at 4,436.52, a new record high and continuing its gains from Thursday’s session. The Financials Select Sector SPDR (XLF) and the Materials Select Sector SPDR (XLB) gained 2% and 1.5%, respectively. Four out of eleven sectors of the benchmark index closed in the positive zone, five closed in the red and two remained unchanged.
The fear-gauge CBOE Volatility Index (VIX) was down 6.5% to 16.15. A total of 8.65 billion shares were traded on Friday, lower than the last 20-session average of 9.63 billion. Advancers outnumbered decliners on the NYSE by a 1.33-to-1 ratio. On Nasdaq, a 1.07-to-1 ratio favored advancing issues.
Cyclical Stocks Moved Markets Higher
Stocks linked to the economic recovery moved higher in Friday’s session with the S&P 500’s financials, energy, industrials and materials sectors registering gains, as investors looked past concerns related to the delta variant of COVID-19, after the U.S. Labor Department reported a better-than-expected job additions report.
The confidence of market participants was boosted in Friday’s session, with the Dow and S&P 500 closing at fresh record highs as the U.S. Bureau of Labor Statistics reported that total non-farm payroll employment for July came in at 943,000 beating the consensus estimate of 854,000. Job additions for June were also revised upward to 938,000 from 850,000 reported earlier.
The unemployment rate declined 0.5% to 5.4% in July, from 5.9% in June, and compared to the consensus estimate of 5.7%. The number of unemployed persons fell 782,000 to 8.7 million. Notable job gains were reported in leisure and hospitality, local government education, and professional and business services.
The report further stated that the average hourly earnings increased 0.4% in July, surpassing the consensus estimate of 0.3% and in line with June’s estimate of 0.4% which was revised upward from 0.3% reported earlier. The average workweek for July was 34.8, in line with June's estimate of 34.8 which was revised upward from 34.7 reported earlier.
The U.S. Federal Reserve reported that during the second quarter, consumer credit increased at a seasonally adjusted annual rate of 8.8%. The report further stated that revolving credit increased at an annual rate of 10.7%, while non-revolving credit rose at an annual rate of 8.3%. The Fed further noted that in June, revolving credit increased at an annual rate of 22%, while non-revolving credit rose at an annual rate of 7.2%.
The U.S. Census Bureau reported that total inventories of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading day differences, but not for price changes, were $717.6 billion at the end of June, up 1.1%, surpassing the consensus estimate of 0.8% rise, and compared to a rise of 1.3% in May.
Weekly Roundup
U.S. stock markets saw major indexes booking gains for the week. The Dow rose 0.7% during the week, reporting its second positive week out of three. The S&P 500 rose 0.9% for the week while the Nasdaq Composite gained 1.1% during the week. The gains came during the week on the back of a robust corporate earnings season and the sentiment of market participants was also lifted following the better-than-expected jobs data on Friday, as they shrugged off concerns related to the delta variant of the coronavirus.
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Stock Market News for Aug 9, 2021
U.S. stock markets closed mostly higher on Friday as cyclical stocks moved the Dow and S&P 500 higher to close at fresh record highs. The confidence of market participants was boosted by a better-than-expected non-farm payroll employment data for July. The Dow and S&P 500 closed the day in green while the Nasdaq Composite ended the day in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.4% or 144.26 points, closing at 35,208.51, a fresh closing high, continuing its gains from Thursday. Notably, 17 components of the 30-stock index ended in green while 13 finished the day in red.
The tech-heavy Nasdaq Composite closed the day at 14,835.76, down 0.4%, reversing its gains from previous sessions, on the back of weak performance by large-cap technology stocks. The S&P 500 rose 0.2%, closing the day at 4,436.52, a new record high and continuing its gains from Thursday’s session. The Financials Select Sector SPDR (XLF) and the Materials Select Sector SPDR (XLB) gained 2% and 1.5%, respectively. Four out of eleven sectors of the benchmark index closed in the positive zone, five closed in the red and two remained unchanged.
The fear-gauge CBOE Volatility Index (VIX) was down 6.5% to 16.15. A total of 8.65 billion shares were traded on Friday, lower than the last 20-session average of 9.63 billion. Advancers outnumbered decliners on the NYSE by a 1.33-to-1 ratio. On Nasdaq, a 1.07-to-1 ratio favored advancing issues.
Cyclical Stocks Moved Markets Higher
Stocks linked to the economic recovery moved higher in Friday’s session with the S&P 500’s financials, energy, industrials and materials sectors registering gains, as investors looked past concerns related to the delta variant of COVID-19, after the U.S. Labor Department reported a better-than-expected job additions report.
Shares of financials like Bank of America Corp. (BAC - Free Report) and JPMorgan Chase & Co. (JPM - Free Report) rose 2.9% and 2.8%, respectively. Materials stocks like Nucor Corp. (NUE - Free Report) gained 2.8%. Nucor carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Economic Data
The confidence of market participants was boosted in Friday’s session, with the Dow and S&P 500 closing at fresh record highs as the U.S. Bureau of Labor Statistics reported that total non-farm payroll employment for July came in at 943,000 beating the consensus estimate of 854,000. Job additions for June were also revised upward to 938,000 from 850,000 reported earlier.
The unemployment rate declined 0.5% to 5.4% in July, from 5.9% in June, and compared to the consensus estimate of 5.7%. The number of unemployed persons fell 782,000 to 8.7 million. Notable job gains were reported in leisure and hospitality, local government education, and professional and business services.
The report further stated that the average hourly earnings increased 0.4% in July, surpassing the consensus estimate of 0.3% and in line with June’s estimate of 0.4% which was revised upward from 0.3% reported earlier. The average workweek for July was 34.8, in line with June's estimate of 34.8 which was revised upward from 34.7 reported earlier.
The U.S. Federal Reserve reported that during the second quarter, consumer credit increased at a seasonally adjusted annual rate of 8.8%. The report further stated that revolving credit increased at an annual rate of 10.7%, while non-revolving credit rose at an annual rate of 8.3%. The Fed further noted that in June, revolving credit increased at an annual rate of 22%, while non-revolving credit rose at an annual rate of 7.2%.
The U.S. Census Bureau reported that total inventories of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading day differences, but not for price changes, were $717.6 billion at the end of June, up 1.1%, surpassing the consensus estimate of 0.8% rise, and compared to a rise of 1.3% in May.
Weekly Roundup
U.S. stock markets saw major indexes booking gains for the week. The Dow rose 0.7% during the week, reporting its second positive week out of three. The S&P 500 rose 0.9% for the week while the Nasdaq Composite gained 1.1% during the week. The gains came during the week on the back of a robust corporate earnings season and the sentiment of market participants was also lifted following the better-than-expected jobs data on Friday, as they shrugged off concerns related to the delta variant of the coronavirus.