The Dow and the S&P 500 closed in the red on Wednesday weighed by a lower-than-expected private-sector jobs report and Fed’s Vice Chairman Richard Clarida’s comment on higher interest rates in 2023 given the current path of economic recovery. The Nasdaq however rose marginally to finish in the positive territory.
How Did the Benchmarks Perform?
On Wednesday, the Dow Jones Industrial Average (DJI) slid 323.73 points, or 0.9%, to close at 34,792.67. The majority of the stocks ended in the red with Amgen Inc. AMGN leading the slump with 6.5% decline, followed by Chevron Corporation CVX, Walgreens Boots Alliance, Inc. WBA and Caterpillar Inc. CAT closing about 2% lower for the session. Chevron flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The S&P 500 declined 20.49 points, or 0.5 %, to end the session at 4,402.66. Nine of the 11 major sectors of the broader index closed in the red, with the energy sector recording the biggest loss, closing 2.9% lower. Consumer staples and the industrials sectors closed at least 1.3% lower for the day
The Nasdaq Composite Index closed at 14,780.53, after adding 19.24 points, or 0.1%. Moderna, Inc. MRNA remained the biggest gainer of the index rising 8.4%, joined by Advanced Micro Devices, Inc. AMD that edged up 5.5%. Atlassian Corporation Plc TEAM, DocuSign, Inc. DOCU and Seagen Inc. SGEN were among the gainers, rising at least 3% on Wednesday.
On Wednesday, the fear-gauge CBOE Volatility Index (VIX) decreased 0.4%, to close at 17.97. Declining issues outnumbered advancing ones for 2.02-to-1 ratio on the NYSE, while a 1.82-to-1 ratio on the Nasdaq favored decliners. The S&P 500 posted 67 new 52-week highs and three new lows, while the Nasdaq Composite recorded 93 new highs and 107 new lows. A total of 9.78 billion shares were traded yesterday, slightly higher than the last 20-session average of 9.71 billion.
ISM Service Sector Grew for 14th Month in a Row
The Institute for Supply Management on Wednesday reported that its service index grew to another all-time high of 64.1 in July from 60.1 in the prior month. The figure beats the consensus estimate of 60.5 and all the 17 services industries reported growth in July. Also, the Employment Index has reflected growth, despite the constrained labor pool that remains an issue along with materials shortages, inflation and logistics disruption.
Private-Sector Job Additions Tumbles in July
On Wednesday, Automatic Data Processing reported that private-sector employment increased by 330,000 in July, which is much lower than the estimate of 653,000 new jobs. June’s private-sector job additions were also downwardly revised to 680,000 new jobs. In the last month, job gains were concentrated in the service sector, 139,000 new jobs were added in the leisure and hospitality industry and education and healthcare services added 64,000 jobs. The Labor Department’s official jobs report is scheduled to be released on Aug 6.
Q2 Earnings Roll-On
As of Aug 4, 378 of the S&P 500 members have reported second-quarter earnings, and total earnings are up 103.8% on 28.2% higher revenues, with 87.3% beating EPS estimates and 86.5% topping revenue estimates. (Read More)
Yesterday, General Motors Company GM reported second-quarter 2021 earnings of $1.97 per share outpacing the Zacks Consensus Estimate of $1.89. The automobile giant reported the highest demand for vehicles and said that higher-than-anticipated profits from its North America and Financial units drove this outperformance. However, given the uncertainty being faced by global automakers due to supply-side constraints, pushed the shares 8.9% lower for the day, its worst day since early March. (Read More)
Stocks that made Headline
APA Q2 Earnings Beat Estimates on Production and Price Gains
APA Corporation APA reported second-quarter 2021 earnings per share — excluding one-time items — of 70 cents, beating the Zacks Consensus Estimate of 54 cents. In the year-earlier quarter, the company reported a loss of 74 cents per share. (Read More)
Marathon (MRO) Beats on Q2 Earnings, Strong Prices Favor
Marathon Oil Corporation MRO reported second-quarter 2021 adjusted net income per share of 22 cents, beating the Zacks Consensus Estimate of 18 cents. In the year-ago period, the company had incurred a loss of 60 cents. (Read More)
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Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
APA Corporation (APA) : Free Stock Analysis Report
Amgen Inc. (AMGN) : Free Stock Analysis Report
Moderna, Inc. (MRNA) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Seagen Inc. (SGEN) : Free Stock Analysis Report
Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report
Atlassian Corporation PLC (TEAM) : Free Stock Analysis Report
DocuSign Inc. (DOCU) : Free Stock Analysis Report
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