U.S. Market Indexes Hold Weekly Gains, August Payrolls Show Moderating Job Market

Barry Adams
01 Sep, 2023
New York City

Market averages jumped in early trading after the release of nonfarm payrolls data and Treasury yields edged slightly higher. 

However, after two hours of trading, averages turned lower and struggled to rise above the flatline. 

Treasury yields edged higher after the U.S. economy added less than 200,000 net new jobs in August but jobless rate rose in the month as the labor market began to cool after multiple rate hikes over the last sixteen months. 

For the week, the S&P 500 index is up 2% and the Nasdaq index is higher by about 3% as investors bid up stocks in energy and tech sectors. 

 

U.S.  Nonfarm Payrolls Expanded Third Month In a Row In August 

The US economy added a net 187,000 jobs in August, and payrolls expanded at a faster pace for the third month in a row, the U.S. Bureau of Labor Statistics.

Employment increased in health care by 71,000, leisure and hospitality by 40,000, social assistance by 26,000, construction by 22,000 and professional services by 19,000. 

On the other hand, transportation and warehousing lost 34,000 jobs, following the bankruptcy of Yellow, a leading trucking company, which left about 30,000 workers out of jobs.

The change in total nonfarm payroll employment for June was revised down 80,000  to 105,000, and the change for July was revised down by 30,000 to 157,000.

Jobless rate increased to 3.8% in August and the number of unemployed increased by 0.51 million to 6.4 million, and jobless rate increased from 3.7% and unemployed increased from 6.0 million a year ago. 

Average hourly rates increased by 4.3% from a year ago, reflecting easting labor market conditions and slowing economy. 

 

U.S. Indexes & Yields 

The S&P 500 index traded down 0.02% to 4,507.02 and the Nasdaq Composite fell 0.02% to 14,003.02. 

The yield on 2-year Treasury notes decreased to 4.88%, 10-year Treasury notes inched higher to 4.11% and 30-year Treasury bonds edged down to 4.30%. 

Crude oil increased $1.50 to $85.13 a barrel and natural gas prices increased 5 cents to $2.82 a thermal unit. 

 

U.S. Stock Movers 

Dell Technologies soared 23% to $69.22 after the company reported quarterly results ahead of market expectations. 

Second quarter revenue decreased 13% to $22.9 billion and net income dropped 10% to $455 million from $506 million and diluted earnings per share fell to 63 cents from 68 cents a year ago. 

MongoDB Inc jumped 5.7% after the database developer reported mixed quarterly results. 

The software company reported second quarter revenue of $423.8 million and adjusted earnings of 93 cents a share. 

Lululemon Athletica Inc soared 4.5% to $401.72 after the athletic apparel retailer reported a jump in revenue and earnings. 

Second quarter revenue increased 18% to $2.2 billion, driven by 11% in North American and 52% in international markets.

Net income jumped to $341.6 million from $289.5 million and diluted earnings per share rose to$2.68 from $2.26.