Major indexes recovered some of the morning’s losses after the stock market reacted to today’s strong employment report.
The Dow Jones Industrial Average fell as much as 0.9% in early trading but recovered. It was down by 0.1% in the afternoon session. The Nasdaq pared losses slightly and was down 1%. The S&P 500 was down 0.6%. The iShares Russell 2000 ETF (IWM) rose modestly by 0.4%, outperforming the stock market.
Volume fell on the NYSE and Nasdaq compared to the same time on Thursday.
The yield on the 10-year Treasury leapt to 2.84%, although it was off session highs of 2.87%. The Innovator IBD 50 fund (FFTY) rose 1.2%.
Job Market Remains Robust
The economy added 528,000 jobs in July, well above the expected 250,000. The unemployment rate fell for the first time in five months, though by a fractional 0.1%. June’s numbers were revised to 398,000 from the earlier count of 372,000. The news increases the odds of a 75 basis point rate hike in September by the Fed.
In the private sector the gain was significant. Some 417,000 jobs were added, well above the expectation of 220,000.
US Stock Market Today Overview
Last Update: 3:02 PM ET 8/5/2022
Companies On Stock Market Radar
Constellation Energy Group (CEG) broke out today. The large provider of clean energy services has improved its Relative Strength Rating, which rose to 95, according to MarketSmith. The stock is trading 6% above its buy point of 68.78.
In its earnings release yesterday, the company disclosed a loss of 34 cents a share, according to MarketSmith. Adjusted EBITDA was $603 million versus $656 million for the same period. The company will likely benefit from the Inflation Reduction Act, which provides a tax credit for nuclear energy and clean hydrogen production.
The company has agreements to provide 160 MW and 78 MW of renewable energy to Bank of America (BAC) and PNC Bank. It also has a 15-year 300 MW contract with Doral Renewables to receive 600,000 MWh from its Mammoth Solar project every year.
New Fortress Energy (NFE) continues to work on a new base with an entry of 52.47. The company beat revenue estimates but missed earnings yesterday. The stock has a strong RS Rating of 98 as it forms a cup base.
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Near its buy point of 14.98, Petrobras[ticker symb=PBR] is trading in a cup base. The stock ranks second in the integrated oil and gas group and has a strong 98 RS Rating. Both NFE and PBR are trading well above their 50 and 200-day moving lines.
Shareholders of Tesla (TSLA) approved the 3-for-1 stock split in a meeting yesterday. The price after the split will likely be around 308 based on yesterday’s closing price. The EV stock has fallen below its 200-day line today.
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