Morning Markets
September S&P 500 futures (ESU22) this morning are down by -0.64%. U.S. stock indexes tumbled this morning after the U.S Jun payroll report showed job gains above expectations and wage growth higher than expected, which will keep the Fed aggressively tightening monetary policy. The 10-year T-note yield jumped to a 1-week high of 3.090% on the stronger-than-expected U.S. June payroll report, which added to equity market weakness.
U.S. Jun nonfarm payrolls rose +372,000, stronger than expectations of +265,000. The Jun unemployment rate was unchanged at 3.6%, right on expectations.
U.S. Jun avg hourly earnings rose +5.1% y/y, easing from 5.3% y/y in May and the smallest pace of increase in 6 months, but above expectations of +5.0% y/y.
The Euro Stoxx 50 today is up by +0.27% at a 1-week high. European stocks are moderately higher today in hopes that the recent surge in inflation may have peaked. A slump in commodity prices this week had brought some relief to widespread inflation fears. Investors continue to flee European equities as a report from Bank of America today showed European equity funds have seen outflows for 21 consecutive weeks, with stock funds losing $2.8 billion in the week through July 6, citing EPFR Global data.
Today’s Eurozone economic data was bullish for stocks after Italian May industrial production fell -1.1% m/m, a smaller decline than expectations of -1.4% m/m.
Asian markets today settled mixed. China’s Shanghai Composite Index closed down by -0.25%, and Japan’s Nikkei stock index closed up by +0.10%.
China’s Shanghai Composite Index today gave up an early advance and posted modest losses on weakness in technology stocks. Chinese technology stocks fell after a report from Reuters today said the U.S. Commerce Department is discussing the possibility of banning exports of chip-making tools to certain Chinese factories that manufacture advanced semiconductors. Chinese stocks initially moved higher today on strength in automakers after today’s data showed China’s June retail passenger vehicle sales jumped +22% y/y to 1.97 million units.
Japan’s Nikkei Stock Index climbed to a 1-week high and posted modest gains. Strength in technology stocks led the overall market higher today on carry-over support from a +2% jump in the Nasdaq 100 Thursday. Japanese stocks gave up nearly all of their gains in late trade today after former Japanese Prime Minister Abe was assassinated in the city of Nara while giving a campaign speech ahead of this Sunday’s upper house elections in Japan.
Today’s Japanese economic data was weaker-than-expected and bearish for stocks. Japan May household spending unexpectedly fell -0.5% y/y, weaker than expectations of +2.1% y/y. Also, the Jun eco watchers expectations outlook survey unexpectedly fell -4.9 to a 4-month low of 47.6, weaker than expectations of an increase to 53.6.
Pre-Market U.S. Stock Movers
Upstart (UPST) plunged -17% in pre-market trading after reporting preliminary Q2 revenue of $228 million, well below the consensus of $297.8 million.
Twitter (TWTR) dropped -4% in pre-market trading on a Bloomberg report that said Elon Musk’s $44 billion proposed takeover of the company was in “serious jeopardy.”
Six Flags Entertainment (SIX) slid -2% in pre-market trading after Citigroup downgraded the stock to neutral from buy.
Agilent Technologies (A) fell more than -2% in pre-market trading after Citigroup cut its recommendation on the stock to neutral from buy.
WD-40 (WDFC) tumbled -9% in pre-market trading after reporting Q3 EPS of $1.07, weaker than the consensus of $1.28, and then cut its full-year EPS forecast to $5.02-$5.10 from a prior view of $5.14-$5.27, below the consensus of $5.18.
GameStop (GME) tumbled more than -6% in pre-market trading after the company said CFO Recupero was fired and announced that it was cutting jobs.
Levi Strauss (LEVI) climbed more than +4% in pre-market trading after reporting Q2 revenue of $1.47 billion, better than the consensus of $1.43 billion.
XPO Logistics (XPO) rose more than +4% in pre-market trading after Morgan Stanley upgraded the stock to overweight from equal-weight, calling the company “too cheap to ignore.”
Today’s U.S. Earnings Reports (7/8/2022)
Piedmont Lithium Inc (PLL).
More Stock Market News from Barchart
/Semiconductor%20by%20Gorodenkoff%20via%20Shutterstock.jpg)
/An%20image%20of%20a%20Tesla%20humanoid%20robot%20in%20front%20of%20the%20company%20logo%20Around%20the%20World%20Photos%20via%20Shutterstock.jpg)
