• 204
  • 34
  • Favorite

U.S. Stock Futures Slid After Strong Jobs Report

Tiger Newspress2022-08-05

Stock futures fell Friday after the July jobs report was much better than expected, showing a strong labor market that will likely mean more interest rate hikes from the Federal Reserve.

Economists expect 258,000 jobs were added in July, down from 372,000 in June, according to Dow Jones. Unemployment is expected to hold steady at 3.6%. The jobs report will be released Friday at 8:30 a.m. ET.

“Investors will be waiting to see if the labor market can withstand the Fed’s rate-hike campaign as well as it did in June,” said Mike Loewengart, managing director of investment strategy at E-Trade.

Job growth is expected to slow as the Fed continues to hike interest rates to tame surging inflation, but it’s unclear whether that slowing will tip the economy into an official recession. Many said Friday’s report is crucial as it’s one of two the central bank will see before it decides how much to raise rates at its September meeting.

Market Snapshot

Dow e-minis were down 140 points, or 0.43%, S&P 500 e-minis were down 30 points, or 0.73%, and Nasdaq 100 e-minis were down 127 points, or 0.96%.

Pre-Market Moers

Expedia – The travel website operator’s stock jumped 5.4% in the premarket after Expedia beat top and bottom line estimates in its latest quarterly report. Travel demand was strong, with lodging revenue up 57% from a year ago and airline ticket revenue up 22%.

Block – Shares of the payment service company slid 6.4% in premarket trading even though it reported better-than-expected quarterly results. The drop comes as Block reports a 34% drop in revenue at its Cash App unit.

Lyft – The ride-hailing service’s stock rallied 7.5% in premarket action after it reported an unexpected quarterly profit and saw ridership rise to the highest levels since before the pandemic. Lyft said its results were also helped by cost controls.

DoorDash – DoorDash surged 10.3% in the premarket after the food delivery service raised its forecast for gross order value, a key metric. DoorDash did report a wider-than-expected quarterly loss, but revenue was above Wall Street forecasts.

DraftKings (DKNG) – The sports betting company reported better-than expected-revenue and adjusted earnings for its latest quarter, and it also raised its full-year revenue forecast. DraftKings shares rallied 8.2% in premarket action.

AMC Entertainment (AMC) – The movie theater operator’s stock fell 9% in the premarket after it said it would issue a stock dividend to all common stock shareholders in the form of preferred shares. Separately, AMC reported a slightly wider-than-expected quarterly loss.

Warner Brothers Discovery (WBD) – The media company’s stock slumped 11.6% in premarket trading after it reported a quarterly loss and revenue that came in below Wall Street forecasts.

Beyond Meat (BYND) – The maker of plant-based meat alternatives reported a wider-than-expected quarterly loss and revenue that missed analyst estimates. Beyond Meat also announced it would lay off 4% of its global workforce. The stock fell 3.6% in premarket action.

Carvana (CVNA) – Carvana shares jumped 8.4% in premarket trading after the online used vehicle seller said it was “aggressively” cutting costs as it prepares for a possible economic downturn.

Virgin Galactic (SPCE) – Virgin Galactic tumbled 14.2% in the premarket after announcing a delay in the commercial launch of space flights to the second quarter of 2023. Virgin Galactic also said that it would sell up to $300 million in shares to boost its cash reserves.

Market News

EU Antitrust Regulators Quiz Developers on Google App Payments

EU antitrust regulators have asked app developers whether Alphabet unit Google's threat to remove apps from its Play Store if they use other payment options instead of its own billing system has hurt their business, two people familiar with the matter told Reuters.

Critics say fees charged by Google and Apple at their mobile app stores are excessive and cost developers collectively billions of dollars a year, a sign of the two companies' monopoly power.

Oil Suffers Deep Weekly Loss as Concerns Over Demand Intensify

Oil headed for a punishing weekly loss on increasing evidence that a global economic slowdown is spurring demand destruction, with prices collapsing to the lowest level in six months as key time spreads contract.

West Texas Intermediate traded above $89 a barrel in Asia, with the US benchmark down more than 9% this week. Official data showed US gasoline consumption has softened while crude stockpiles rose. The slump came even as Saudi Arabia has boosted prices, and OPEC+ warned of scant spare capacity.

Elon Musk Suggests Big Tesla Factory Expansion Plans

Tesla Inc. Chief Executive Elon Musk said Thursday that the electric-vehicle maker, which is striving to sell 20 million vehicles annually, could ultimately build 10 or 12 factories.

An announcement about Tesla's next factory location could come later this year, he said at Tesla's annual shareholder meeting. Mr. Musk didn't say whether the factory count he forecast includes existing facilities such as the company's four existing car plants.

Meta's First-Ever Corporate Bond Deal Sees $30 Billion in Demand

Meta Platforms Inc., saw roughly $30 billion in demand for its $10 billion debut, four-part U.S. corporate bond deal, according to a person with knowledge of the dealings and Informa Global Markets.

That's a big deal. While Meta reported its first-ever drop in revenue in the second-quarter, investment bankers still were able to pull in price talk on each class of A1 to AA- rated bonds from the social-media giant.

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.

Report

Comment34

  • Bull1973
    ·2022-08-07
    Ok
    Reply
    Report
  • onionfish
    ·2022-08-06
    👍🏻
    Reply
    Report
  • Steve81
    ·2022-08-06
    Jiayou
    Reply
    Report
  • BKT
    ·2022-08-05
    Pls like thanks.
    Reply
    Report
  • Spaclover
    ·2022-08-05
    T
    Reply
    Report
  • KLS
    ·2022-08-05
    Buy
    Reply
    Report
  • Trainman
    ·2022-08-05
    Unemployed rates remain high
    Reply
    Report
  • Hi001
    ·2022-08-05
    Ok
    Reply
    Report
  • Dttk
    ·2022-08-05
    like pls
    Reply
    Report
  • Ted1209
    ·2022-08-05
    [smile] 
    Reply
    Report
  • Andrewinho
    ·2022-08-05
    Offer n Sales!!! 🤭🤭🤭
    Reply
    Report
  • WeeLee
    ·2022-08-05
    Like
    Reply
    Report
  • SPACE ROCKET
    ·2022-08-05
    'The labor market has been a key source of economic strength. Even if growth is slowing, a strong labor market could keep the economy out of recession territory. Employment typically falls during recessions as companies lay off workers and stop hiring until the outlook improves.'Now that the labour market is strong, why are ppl dumping shares? We are not in recession dudes. Chill.
    Reply
    Report
  • nxw
    ·2022-08-05
    Like pls
    Reply
    Report
  • themonkey
    ·2022-08-05
    ok
    Reply
    Report
  • money2me
    ·2022-08-05
    back dated report leh [Cry] [Cry] [Cry] 
    Reply
    Report
  • JBSIEW
    ·2022-08-05
    Funny!
    Reply
    Report
  • Torres87
    ·2022-08-05
    Like please
    Reply
    Report
  • 壮志高飞
    ·2022-08-05
    Jobs demand surprising hot. No recession yet. That means inflation likely remains elevated. 
    Reply
    Report
  • Mr Mooney
    ·2022-08-05
    Inflatation is down. Job market is up.The stock market will up likely.
    Reply
    Report
 
 
 
 

Most Discussed

 
 
 
 
 

7x24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email:uservice@ttm.financial