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Dow Edges Into Positive Territory As Stocks Erase Early Losses

Tiger Newspress2022-08-05

The Dow Jones Industrial Average rebounded following an earlier loss in the wake of a July jobs report that was much better than expected, as investors assessed what a strong labor market would mean for the Federal Reserve’s rate tightening campaign.

The Dow Jones Industrial Average shed just 3 points after being down more than 200 points. Bank stocks led the intraday comeback as rates surged from the strong jobs report. The S&P 500 was flat after earlier losing about 1%. The Nasdaq Composite was down about 0.1%.

The labor market added 528,000 jobs in July,easily beating a Dow Jones estimate of a 258,000 increase. The unemployment rate ticked down to 3.5%, below the 3.6% estimate. Wage growth also ticked up more than estimated, up 0.5% for the month and 5.2% higher than a year ago, signaling that high inflation is likely still a problem.

Stocks opened lower following the report, even as it seemed to indicate the economy was not currently in a recession.

“Anybody that jumped on the ‘Fed is going to pivot next year and start cutting rates’ is going to have to get off at the next station, because that’s not in the cards,” said Art Hogan, chief market strategist at B. Riley Financial. “It is clearly a situation where the economy is not screeching or heading into a recession here and now.”

Job growth was expected to slow as the Fed continues to hike interest rates to tame surging inflation, but this report shows a labor market still running hot. The report is a crucial one as it’s one of two the central bank will see before it decides how much to raise rates at its September meeting.

Major averages posted their best month since 2020 in July on the hope the Fed would slow the pace of its hikes. The S&P 500 added 9.1% last month.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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Comment25

  • DDRuirong
    ·2022-08-07
    Fugitive
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  • Simonnov
    ·2022-08-06
    Ic
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  • 小虎一飞冲天
    ·2022-08-06
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    ·2022-08-06
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  • SudTradepro
    ·2022-08-06
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  • PearlynCSY
    ·2022-08-06
    Stocks wavered Friday in a volatile trading session after the July jobs report was much better than expected, as investors assessed what a strong labor market would mean for the Federal Reserve’s rate tightening campaign. The Dow Jones Industrial Average gained 0.23%, to end at 32,803.47. Even with Friday’s gains, however, it fell on the week. The S&P 500 shed 0.16% to end at 4,145.19, and the Nasdaq Composite lost 0.50% Friday, falling to 12,657.56. Still, both the S&P 500 and the Nasdaq ended the first week of August higher. The labor market added 528,000 jobs in July, easily beating a Dow Jones estimate of a 258,000 increase. The unemployment rate ticked down to 3.5%, below the 3.6% estimate. Wage growth also rose more than estimated, up 0.5% for the month and 5.2% higher than a
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  • Vincent1968
    ·2022-08-06
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    ·2022-08-06
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    ·2022-08-06
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    ·2022-08-06
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    ·2022-08-06
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    ·2022-08-06
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    ·2022-08-06
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    ·2022-08-06
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    ·2022-08-06
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    ·2022-08-05
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    ·2022-08-05
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  • Otahman
    ·2022-08-05
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