US Stocks End Friday Mixed After Strong Jobs Data
US stocks ended the last session of the week mixed after strong July employment data.
The Dow Jones Industrial Average closed 0.2% higher to 32,803.47 while the S&P 500 fell 0.2% to 4,145.19 and the Nasdaq Composite declined 0.5% to 12,657.55. For the week, however, it was the Dow that ended in the red, down 0.1%, while the S&P 500 gained 0.4% and the Nasdaq advanced by 2.2%.
Consumer discretionary and communication services were the steepest decliners, while the energy sector was the top gainer.
The US employment report showed a 528,000 gain in nonfarm payrolls in July, beating estimates for an increase of 250,000, compared with the 398,000 increase in June. The unemployment rate fell to 3.5%, versus estimates for no-change at 3.6% in a survey compiled by Bloomberg.
Average hourly earnings were up 0.5%, stronger than an upward revised 0.4% increase in June, keeping the adjusted year-over-year rate at 5.2% compared with expectations for a slowdown to 4.9%.
The unemployment rate is back to its pre-pandemic low, and hourly earnings are surging, opening the door to a higher ceiling for rate increases from the Federal Reserve, Commerzbank economists Christoph Balz and Bernd Weidensteiner said in a research note.
"The labor market did not cool, but rather picked up speed," the duo said in the note. "To get inflation under control, the Fed will likely have to raise its key rates substantially further."
West Texas Intermediate futures fell 0.2% to $88.35 a barrel.
The US 10-year yield soared 16.4 basis points to 2.84%.
In company news, Warner Bros. Discovery (WBD) swung to a surprise loss in Q2 and sales grew more slowly than forecast. Credit Suisse lowered Discovery's price target to $39 from $43 while keeping its outperform rating. Shares sank nearly 17%, the worst performer on the S&P 500.
Monster Beverage (MNST) reported a steeper decline in Q2 earnings than anticipated, while sales jumped from a year ago. Shares dropped more than 5%, the second-worst performer on the Nasdaq 100.
Atlassian Corp. (TEAM) reported higher-than-expected fiscal Q4 earnings as sales jumped from a year ago, beating estimates. Shares of the company surged nearly 17%, the most on the Nasdaq 100.
Gold was down 1% to $1,783.10 per troy ounce, and silver was down 1.2% to $20.13 per ounce.