Pre-markets in the red amid July jobs data and second-quarter earnings
US stock futures plunge into pre-market today after the report of strong job creations in July. Market participants fear that a tight labor market will reduce fears of a near-term recession and allow the Fed to continue its aggressive interest rate hikes and monetary tightening.
The Department of Labor reported that Non-farm payroll in July stood at 528,000 compared to the consensus estimate of 236,000. Additionally, job additions in June were revised up to 398,000 from 372,000 reported earlier. July’s job addition was the best since February.
The Unemployment rate fell to 3.5% in July from 3.6% in June. The consensus estimate was 3.6%. Average hourly earnings rose 0.5% in July from the consensus estimate of 0.3%. The wage rate in June was also revised up to 0.4% from 0.3% reported earlier.
Year over year, the wage rate rose 5.2% in July, in line with the previous month’s increase. A higher wage rate is one of the main sources of rising inflation. Average work week came in at 34.6, stable from the previous month.
The July jobs data indicates that the economy needs to do a lot to ease the current inflationary pressure. Next weeks Consumer price index data will be of utmost importance in this regard. The Fed’s next decision on the benchmark interest rate will depend on the data.
The second quarter 2022 earnings season maintains its momentum. DraftKings Inc. DKNG reported a quarterly loss of $0.50 per share, narrower than Zacks consensus estimate of a loss of $0.76 per share. The gaming major reported revenue of $466.19 million, beating Zacks’ consensus estimate by 6.38%. For a detailed revenue analysis of DKNG, click here.
Aviation-based wireless service provider gogo inc. GOGO reported quarterly earnings of $0.17 per share, beating Zacks consensus estimate of $0.15 per share. Revenue was $97.84 million, beating Zacks’ consensus estimate by 2.71%. To learn more about GOGO earnings, click here.
High Tech Original Equipment Manufacturer Trimble Inc. TRMB posted quarterly earnings of $0.64 per share, beating Zacks consensus estimate of $0.61 per share. The company posted revenue of $941.2 million, beating Zacks’ consensus estimate of 1.92%. For more information on TRMB earnings, click here.
Technology-Based Transportation Equipment Supplier Westinghouse Air Brake Technologies Corp. WAB exited with quarterly earnings of $1.23 per share, beating Zacks’ consensus estimate of $1.22 per share. The company posted revenue of $2.05 billion, missing Zacks’ consensus estimate of 1.66%. For a detailed discussion of WAB earnings, click here.
On the M&A side, the e-commerce giant Amazon.com Inc. AMZN has decided to acquire the maker of Roomba iRobot Corp. IRBT in an all-cash deal valued at $1.7 billion. The deal will strengthen Amazon’s presence in the consumer robotics space.
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