U.S. Averages Gain as Traders Review Big Tech Earnings and Jobs Report

Barry Adams
04 Aug, 2023
New York City

Stocks on Wall Street traded sideways on the final day of the week as investors review the latest non-farm payrolls report and another batch of corporate earnings. 

Amazon delivered higher-than-expected earnings after the company's cost cutting efforts paid off but Apple struggled with revenues on the ongoing weakness in smartphone sales in Asia. 

Non-farm payrolls increased 187,000 in July, higher than the downwardly revised 185,000 in June, the U.S. Bureau of Labor Statistics reported Friday. 

Economists polled by Ticker.com were anticipating payrolls to increase as much as 210,000 in the month. 

Monthly job gains were driven by increases in healthcare, social services, financial services and wholesale trade. 

Job gains were below the 312,000 monthly averages over the last twelve months but significantly above the 70,000 needed to meet the demand from the rising working age population. 

The average hourly earnings for all employees on US private nonfarm payrolls rose by 14 cents, or 0.4% to $33.74 in July, matching the pace of increase in the prior month. 

Over the past 12 months, average hourly earnings have increased by 4.4% in July, matching the annual pace in the previous month. 

The change in total nonfarm payroll employment for May was revised down by 25,000 to 281,000, and for June was revised down by 24,000 to 185,000.

Jobless rate declined to 3.5% and the number of unemployed changed little at 5.8 million in July and the jobless rate has ranged between 3.4% and 3.7% since March 2022.  

After the release of non-farm payrolls, the yield on 10-yearTreasury notes inched higher and traded above 4.20%, the level not seen since November.  

 

U.S. Indexes & Yields 

The S&P 500 index futures traded up 0.2% to 4,511.4.34 and the Nasdaq Composite futures rose 0.3% to 13,971.63. 

The yield on 2-year Treasury notes increased to 4.91%, 10-year Treasury notes inched higher to 4.20% and 30-year Treasury bonds edged down to 4.29%. 

Crude oil increased $0.22 to $81.77 a barrel and natural gas prices decreased 2 cents to $2.54 a thermal unit. 

 

U.S. Stock Movers 

Apple Inc declined 2.5% to $186.50 after the company reported sales declined 1% from a year ago and earnings per share of $1.29 on the weakness in computing devices and smart phones. 

Amazon.com, Inc soared 8.8% to $140.27 after the e-commerce company reported better-than-expected sales in its latest quarter of $134.4 billion and earnings of 65 cents per share. 

Airbnb Inc was nearly unchanged at $141.0 after the online short-term stay booking platform reported revenues and booking rose at a slower-than-expected pace in the quarter. 

Block Inc declined 6.6% to $68.80 after the company reported second quarter earnings per share of 39 cents and revenue of $5.53 billion. 

The company reported earnings and sales ahead of market expectations. 

Paramount Global declined 1.6% to $18.08 on multiple reports that the company is in talks with private equity firm KKR to sell its publishing division Simon & Schuster. 

Booking Holdings Inc rose 12.1% to $3,185.0 after the online travel booking company reported second quarter revenue of $5.46 billion and adjusted earnings per share of $37.62. 

Tupperware Brands Corp soared 60.1% to $5.64 after the company said it finalized its debt restructuring deal that could reclassify as much as $121 million in interest expenses  and fees.