Stocks On Wall Street Turn Lower After Strong Jobs Report

Barry Adams
08 Jul, 2022
New York City

U.S. stocks turned lower after a stronger-than-expected jobs report lifted the prospects of faster and higher interest rates hikes from the Federal Reserve. 

The S&P 500 index declined 0.2% to 3,895.06 and the Nasdaq index fell 0.4% to 11,569.99. 

Futures of crude oil increased $1.86 to $104.80 a barrel and natural gas fell 10 cents to $6.19 a unit. 

The yield on 10-year Treasury notes increased to 3.05% after the release of the jobs report. 

Non-farm payrolls increased 372,000 in June, according to the Bureau of Labor Statistics. 

The strong jobs report surpassed the 250,000 increase estimate that some economists had expected. 

The bond yields rose after the release of sharply higher than expected job gains, fueling worries that the Fed will increase the rate by 75 basis points at its next meeting on July 26-27. 

European markets advanced in cautious trading after Italian production declined for the first time in four months. France's trade and current account deficit widened and Norway's trade surplus soared on a surge in energy exports. 

Asian markets closed mixed but market indexes in Japan turned lower after Japan's former prime minister Shinzo Abe was assassinated while campaigning in a city near Kyoto. 

The killing of Abe sent shockwaves in the nation not accustomed to gun violence and with one of the strictest gun controls in the world.  

Levi Strauss gained 38 cents to $16.73 after the apparel maker and retailer said quarterly sales rose 15% and earnings dropped 23% on charges linked to closure of Russian operations. 

The strong dollar also impacted international sales growth. 

Revenues in the second quarter ending in May increased 15% to $1.5 billion and rose 20% on a constant currency basis. 

Net income in the quarter declined 23% to $50 million from $65 million a year ago and earnings per share dropped to 12 cents from 16 cents.

WD-40 Company plunged 11.4% to $180.10 after the chemical maker reported sharply lower earnings and lowered its annual outlook. 

WD-40 said sales in the third quarter ending in May declined 9% to $123.7 million and sales were affected after translating foreign sales to the strong U.S. dollar. 

Net income in the quarter declined 31% to $14.5 million or $1.07 a diluted share from $21.0 million or $1.52 a share.