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We start a new week of trading with another 446 publicly traded companies reporting quarterly earnings, a new Senate vote on an elusive infrastructure deal and a new print on Job Openings, which comes out after the opening bell. To start the week, the Dow is -75 points, the S&P 500 is -5 and the Nasdaq is -10 points at this hour. The Nasdaq hit an all-time high close last week but finished Friday short of the mark. The Dow and S&P are near all-time highs.
The U.S. Senate just voted to approve a $1 trillion infrastructure package that would fix roads, bridges, airports, etc., with more than a dozen Republicans joining Democrats in passing infrastructure legislation that has been extremely hard to come by in the past decade-plus of harshly polarized politics on Capitol Hill. There are some carve-outs to cryptocurrency investments, which major crypto holders have been pressuring lawmakers about.
The $3.5 trillion “human capital” infrastructure bill also passed the Senate this morning, and reportedly its pay-fors will include higher taxes on wealthy Americans, lower federal healthcare costs and a novel carbon pollution importer tax. This bill will have a harder time being passed, and may find itself a campaign issue in next year’s midterms.
Job Openings for June are expected to have reached 9.1 million overall, down a tick from the 9.2 million reported for May. These figures are released by the U.S. government and have really shot out of a cannon upon the advent of the Great Reopening. This is also a high number considering that now more than half the states in the U.S. have cut their pandemic unemployment policies, which was supposed to have returned more people to work by now.
Speaking of work, nonfarm payrolls for July last Friday reached 943K, well ahead of estimates between 850-900K for the month, and even higher than the increased revision for June to 938K. And May’s total jobs gains also were upwardly revised, to 614K. Over the past 12 months, the U.S. has gained an average of 605K new jobs filled per month. Most continue to be in the Leisure & Hospitality category.
The Unemployment Rate also took a big step down to 5.4% — half a full percentage point, and lower than expected. While we’re still well off the 3.5% rate we were enjoying back in February 2020, right before the Covid pandemic hit, we’re still seeing a marked improvement in 2021: through the first seven months of the year, the U.S. is averaging an unemployment rate of 6.0%; for the full 12 months of 2020, the average was 8.1% per month.
Tyson Foods (TSN - Free Report) beat estimates on both top and bottom lines this morning for its fiscal Q3, with earnings of $2.05 per share easily ahead of the $1.77 in the Zacks consensus. Revenues of $12.48 billion surpassed the $11.20 billion analysts were looking for. Beef sales increased 24% in the quarter, year over year, while Prepared Foods grew a higher-than-expected $2.32 billion in the quarter.
Competitor U.S. Foods (USFD - Free Report) shares are up nearly 8% this morning on its big beat for Q2 sales and earnings. The company put out 58 cents per share in the quarter, well ahead of the 34 cents expected and the -25 cents per share reported a year ago. Revenues grew 66.5% year over year to $7.66 billion, well ahead of the $6.84 billion in the Zacks consensus estimate.
After today’s closing bell, we will hear from AMC (AMC - Free Report) , one of the most-traded stocks of 2021 — it began as a Great Reopening play that morphed into “meme stock” status. Shares are trading less than half of their all-time highs earlier this year; can a better-than-expected earnings report this afternoon justify the movie theater chain’s still-lofty valuation?
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Week Starts with Infrastructure Bill in Purview
We start a new week of trading with another 446 publicly traded companies reporting quarterly earnings, a new Senate vote on an elusive infrastructure deal and a new print on Job Openings, which comes out after the opening bell. To start the week, the Dow is -75 points, the S&P 500 is -5 and the Nasdaq is -10 points at this hour. The Nasdaq hit an all-time high close last week but finished Friday short of the mark. The Dow and S&P are near all-time highs.
The U.S. Senate just voted to approve a $1 trillion infrastructure package that would fix roads, bridges, airports, etc., with more than a dozen Republicans joining Democrats in passing infrastructure legislation that has been extremely hard to come by in the past decade-plus of harshly polarized politics on Capitol Hill. There are some carve-outs to cryptocurrency investments, which major crypto holders have been pressuring lawmakers about.
The $3.5 trillion “human capital” infrastructure bill also passed the Senate this morning, and reportedly its pay-fors will include higher taxes on wealthy Americans, lower federal healthcare costs and a novel carbon pollution importer tax. This bill will have a harder time being passed, and may find itself a campaign issue in next year’s midterms.
Job Openings for June are expected to have reached 9.1 million overall, down a tick from the 9.2 million reported for May. These figures are released by the U.S. government and have really shot out of a cannon upon the advent of the Great Reopening. This is also a high number considering that now more than half the states in the U.S. have cut their pandemic unemployment policies, which was supposed to have returned more people to work by now.
Speaking of work, nonfarm payrolls for July last Friday reached 943K, well ahead of estimates between 850-900K for the month, and even higher than the increased revision for June to 938K. And May’s total jobs gains also were upwardly revised, to 614K. Over the past 12 months, the U.S. has gained an average of 605K new jobs filled per month. Most continue to be in the Leisure & Hospitality category.
The Unemployment Rate also took a big step down to 5.4% — half a full percentage point, and lower than expected. While we’re still well off the 3.5% rate we were enjoying back in February 2020, right before the Covid pandemic hit, we’re still seeing a marked improvement in 2021: through the first seven months of the year, the U.S. is averaging an unemployment rate of 6.0%; for the full 12 months of 2020, the average was 8.1% per month.
Tyson Foods (TSN - Free Report) beat estimates on both top and bottom lines this morning for its fiscal Q3, with earnings of $2.05 per share easily ahead of the $1.77 in the Zacks consensus. Revenues of $12.48 billion surpassed the $11.20 billion analysts were looking for. Beef sales increased 24% in the quarter, year over year, while Prepared Foods grew a higher-than-expected $2.32 billion in the quarter.
Competitor U.S. Foods (USFD - Free Report) shares are up nearly 8% this morning on its big beat for Q2 sales and earnings. The company put out 58 cents per share in the quarter, well ahead of the 34 cents expected and the -25 cents per share reported a year ago. Revenues grew 66.5% year over year to $7.66 billion, well ahead of the $6.84 billion in the Zacks consensus estimate.
After today’s closing bell, we will hear from AMC (AMC - Free Report) , one of the most-traded stocks of 2021 — it began as a Great Reopening play that morphed into “meme stock” status. Shares are trading less than half of their all-time highs earlier this year; can a better-than-expected earnings report this afternoon justify the movie theater chain’s still-lofty valuation?