Traders on the floor of the New York Stock Exchange (NYSE) are closely monitoring the latest earnings reports from big-name technology companies and the July jobs report. Stock futures were little changed on Friday morning, with futures linked to the tech-heavy index and S&P 500 dipping 0.1%, while futures tied to the Dow Jones Industrial Average dipped 20 points.
After the bell on Thursday, Amazon reported better-than-expected earnings, causing its stock to jump 8.7%. The company also offered positive guidance. However, Apple’s stock fell 2.3% after its revenue came in lower than the year-ago quarter. Beyond tech, Airbnb slid after reporting slower growth than expected, while DraftKings rose on a report that exceeded analyst expectations.
So far this earnings season, about 79% of S&P 500 companies have reported results, with 80% surpassing Wall Street expectations. The positive earnings momentum has supported the market rally, but traders are also keeping an eye on the jobs data for further insights into the strength of the labor market and economy.
In other news, China announced that it will lift tariffs on Australian barley imports starting August 5, signaling improving bilateral relations. This move will alleviate supply concerns after Russia suspended a humanitarian corridor for key Ukrainian grains. Australia’s trade, foreign, and agriculture ministers welcomed the decision and expect a similar process for the removal of duties on Australian wine.
Meanwhile, the Reserve Bank of Australia has cut its growth outlook for the country to 1% for 2023, down from its previous estimate of 1.25%. The central bank noted that economic activity is forecast to remain subdued due to cost-of-living pressures and rising interest rates. However, the bank also mentioned that inflation is heading in the right direction, although it remains too high.
In Asia, Hong Kong’s Hang Seng Index led gains on Friday, driven by property and basic materials stocks. The index climbed 1.61%, with top gainers including Longfor Group, Country Garden Holdings, and China Resources Land.
Overall, traders are closely watching earnings reports, jobs data, and global developments as they navigate the market.for 2023 to 2.25%, down from the previous estimate of 2.5%.
The central bank also reiterated its commitment to maintaining accommodative monetary policy until inflation is sustainably within the target range of 2-3%.
— Samantha Subin
How are concerns over rising inflation and the Federal Reserve potentially tapering its monetary support affecting the market and traders’ optimism
Expected. Microsoft’s stock also slipped 1.4% after the company announced it would acquire Nuance Communications for $16 billion.
Investors are also keeping a close eye on the July jobs report, which is expected to shed light on the state of the labor market as the economy continues to recover from the pandemic. Economists are predicting that the report will show a gain of 845,000 jobs, which would be a strong indication of a robust recovery.
The tech-heavy index and the S&P 500 are both trading near record highs, as investors continue to bet on the strength of technology companies’ earnings. However, concerns over rising inflation and the Federal Reserve potentially tapering its monetary support have also been weighing on the market.
Overall, traders are cautiously optimistic as they analyze the latest earnings reports and economic data. While some big-name tech companies are exceeding expectations, others are falling short, and the jobs report will provide further insight into the health of the economy.
This report is a crucial indicator for investors to analyze the potential growth of technology stocks and its impact on the job market.