Major Sell-Off Following Intel and Amazon Results, Labor Market in July Slowed | moovin Stonks
Good morning, traders. Happy Friday, August 2nd. The month started with a red day, and now for a second day in a row, equities in the U.S. are falling hard. Eight out of 11 S&P Global sectors are in the red today, led by Internet Content and Semiconductor companies. My name is Kevin Travers, it is a major pullback day; here are stories from the herd on Wall St today, here are moovin' stonks
Tech is leading selloffs after $Intel (INTC.US)$ earnings report sent the stock hurtling down 28%. The firm reported an EPS of just 2C, which was 80% lower than estimates; it was the lowest-reaching stock on the S&P 500 and Dow Jones. The firm outlined plans for 15,000 job cuts and a suspension of its dividend.
$Amazon (AMZN.US)$ also fell about 12%, after the firm reported mixed results- beating EPS estimates but reporting lower sales than the market looked for.
$NVIDIA (NVDA.US)$ pulled back nearly 6%, as every Semiconductor related firm pulled back following Intel's results and $Super Micro Computer (SMCI.US)$ pulled back 10%.
Internet retail as an industry segment fell a whopping 8%, led by Amazon's missed sales numbers.
Commodities we track were all in the red Friday. $Crude Oil Futures(FEB5) (CLmain.US)$ fell back 3.85%, $Bitcoin (BTC.CC)$ fell to $63k, Goldand silver pulled back. $U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ fell below 4% for the first time since spring 2023, and the $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ fell.
The market took a major hit Friday morning, with 8500 equities in the decline, and just 2000 gaining. Just past 10:40 am ET the $S&P 500 Index (.SPX.US)$ fell 2.58%, the $Dow Jones Industrial Average (.DJI.US)$ fell 1.98%, and the $Nasdaq Composite Index (.IXIC.US)$ fell 3.35%.
The only solace in a sea of red was labor numbers Friday that showed US Jul. Non-Farm Payrolls added114k jobs vs 175k forecast, and 179k in June, according to the Bureau of Labor Statistics. The July unemployment rate rose to 4.3% vs 4.1%last month. The Federal Reserve has looked extensively at the labor market as an indicator of its monetary policy and appetite for rate cuts.
Thursday, according to the Labor Department, Initial applications for US unemployment benefits jumped to 249,000 last week, the highest level in a year. Continuing claims, a number that is analogous to unemployment, rose to 1.88 million, the highest since 2021. S&P Global PMI came in at 49.6 vs 49.5 expected, and ISM PMI came in at 46.8, lower than 48.8 expected.
The FOMC left rates unchanged Wednesday, and after the release at 2 pm ET, Federal Reserve President Jerome Powell answered press questions and said if all goes well, the FOMC would consider a rate cut in September.
"For example, if inflation was moving down quickly or in line with expectations, growth remains reasonably strong, and the labor market remains consistent with its current condition, then I would think that a rate cut could be on the table at the September meeting,' Powell said.
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User Goodjobguys yesterday remarked on the wild market reactions to earnigns this season, with semeingly fine results leading to major sell offs.
Traders, what do you think, is the market in 2024 about following the herd? What you watching on the stock market today? What is the herd following? Let me know in the comments below!
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Kevin Travers
Moomoo News and Community Manager
Moo moo News and Community Manager, NJ Office.
Fmr CNBC contributor, reporter/investor/trader
Posts do not represent mm
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Red__Bull : what software are you using in this video? it looks like it provide insightful infi to view the broader market
Kevin Travers OP Red__Bull : MOOMOOOO click on the markets tab on the desktop and sort by turnover
Stock_Drift : Buy that $Amazon (AMZN.US)$ dip, all day.
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