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Pre-Markets in Red Amid Strong July Jobs Data and Q2 Earnings

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U.S. stock futures dip in pre-market today following the report of strong job additions in July. Market participants are worried that a tight labor market will reduce concerns of a near-term recession and allow the Fed to continue its aggressive interest rate hike and monetary tightening.

The Department of Labor reported that Non-farm Payrolls in July came in at 528,000 compared to the consensus estimate of 236,000. Moreover, job additions in June were revised upward to 398,000 from 372,000 reported earlier. Job addition in July was the best since February.

The Unemployment Rate dropped to 3.5% in July from 3.6% in June. The consensus estimate was 3.6%. Average Hourly Earnings increased 0.5% in July compared with the consensus estimate of 0.3%. Wage rate in June was also revised upward to 0.4% from 0.3% reported earlier.

Year over year, wage rate increased 5.2% in July , in line with the previous month’s gain. A higher wage rate is one of the primary sources of mounting inflation. Average Work Week came in at 34.6, flat with the previous month.

July’s job data indicates that the economy needs to go a long way to cool current inflationary pressure. Next week’s Consumer Price Index data will be of utmost importance in this regard. The next move of the Fed regarding the benchmark interest rate will depend on data.  

The second-quarter 2022 earnings season maintains it momentum. DraftKings Inc. (DKNG - Free Report) has reported quarterly loss of $0.50 per share, narrower than the Zacks Consensus Estimate of a loss of $0.76 per share. The gaming major posted revenues of $466.19 million, outpacing the Zacks Consensus Estimate by 6.38%. For a detailed analysis on DKNG earnings, click here.

Aviation-based wireless service provider Gogo Inc. (GOGO - Free Report) reported quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.15 per share. The top line came in at $97.84 million, exceeding the Zacks Consensus Estimate by 2.71%. For knowing more on GOGO earnings, click here.

High-tech original equipment manufacturer Trimble Inc. (TRMB - Free Report) has registered quarterly earnings of $0.64 per share, beating the Zacks Consensus Estimate of $0.61 per share. The company posted revenues of $941.2 million, surpassing the Zacks Consensus Estimate by 1.92%. To get more information on TRMB earnings, click here.  

Technology-based transportation equipment provider Westinghouse Air Brake Technologies Corp. (WAB - Free Report) came out with quarterly earnings of $1.23 per share, beating the Zacks Consensus Estimate of $1.22 per share. The company posted revenues of $2.05 billion, missing the Zacks Consensus Estimate by 1.66%. For a detailed discussion on WAB earnings, click here.

On the M&A front, the online retailing behemoth Amazon.com Inc. (AMZN - Free Report) has decided to acquire Roomba maker iRobot Corp. (IRBT - Free Report) in an all-cash deal valued at $1.7 billion. The deal will strengthen Amazon’s presence in the consumer robotics space.