US STOCKS-U.S. stocks rises on Amazon boost; bond yields fall

Tupperware Brands

04/08/2023 19:12

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        * 
      U.S. jobs growth slows in July
    

        * 
      IPhone sales slump weighs on Apple
    

        * 
      Amazon sees bright Q3 on resilient cloud sales, shopping
trends
    

        * 
      Fortinet drops on forecast cut
    

        * 
      Indexes up: Dow 0.55%, S&P 500 0.51%, Nasdaq 0.86%
    

  
 (Updated at 1:53 p.m. ET/5:53 p.m. GMT)
    By Echo Wang
       Aug 4 (Reuters) - 
    Wall Street gained and bond yields fell on Friday after July
jobs data showed a slowing in the U.S. labor market with wage
gains.
        
    U.S. employers
     added 187,000 jobs in July, according to the Labor
Department's employment report on Friday. Data for June
additions was revised lower to 185,000 jobs, from 209,000
reported previously.
        “There’s been this building narrative as of recent..
(that) the soft landing is a sure thing, the economy is not
going to slow materially”, said Charlie Ripley, senior
investment strategist for Allianz Investment Management in
Minneapolis,  “Loosening up of the labor market is a sign that
shows that the economy is slowing to some extent.”
  

    
    
    Average hourly earnings rose 0.4% in July, unchanged from
the previous month, exceeding expectations, taking the
year-on-year increase in wages to 4.4%. 
    The yield on the 10-year benchmark note  US10YT=RR  dipped
on Friday after the jobs data, but still remained above 4%,
partly boosting some megacap stocks.
        “This buildup that nonfarm payrolls were going to exceed
expectations - Clearly, it didn't - drove the rest of the bond
market that we're seeing”, said Ripley,"we are kind of seeing
equity market reaction to that as well. It's a little bit more
bullish for equities.”
  
    Giving solid boost to the S&P 500 index, Amazon.com shares
 AMZN.O  surged 10.5% after the company issued an upbeat
third-quarter outlook. Apple's shares  AAPL.O  dipped 3.2% as
the iPhone maker forecast a continued slide in sales.
    Shares of peers Microsoft  MSFT.O , Alphabet  GOOGL.O  and
Snowflake  SNOW.N  rose between 1% and 5% after Amazon's cloud
business segment beat sales estimates.
    At 1:53 p.m. ET, the Dow Jones Industrial Average  .DJI 
rose 192.75 points, or 0.55%, to 35,408.64, the S&P 500  .SPX 
gained 23.17 points, or 0.51%, to 4,525.06 and the Nasdaq
Composite  .IXIC  added 120.23 points, or 0.86%, to 14,079.94.
    All three major indexes were on course to end the week
lower, with the tech-heavy Nasdaq leading losses. 
    Stocks closed marginally lower on Thursday, weighed down by
the last batch of economic data and some disappointing earnings.
    Of the 422 companies in the S&P 500 that have reported
quarterly earnings as of Friday, 79.1% have beat analysts'
estimates, according to Refinitiv data.
    Carl Icahn-owned investment firm Icahn Enterprises  IEP.O 
shed 23.3% after the company halved its quarterly payout, months
after short-seller Hindenburg Research accused it of operating a
"Ponzi-like" structure to pay dividends.
    Fortinet  FTNT.O  tumbled 24.4% after the cybersecurity firm
cut its annual revenue forecast as spending from enterprise
clients remained tight amid a turbulent economy.
    Shares of Tupperware  TUP.N , known for its plastic airtight
storage containers and bowls, rallied 48.3% after the company
finalized an agreement with its lenders to restructure its debt
obligations in an effort to turn around the business.
    Amgen  AMGN.O  added 6.4% after it reported a higher
quarterly profit on strong sales of its cholesterol,
osteoporosis and other drugs.
    DraftKings'  DKNG.O  shares rose 2% after the sports-betting
firm raised its fiscal year 2023 revenue outlook.
    Advancing issues outnumbered declining ones on the NYSE by a
2.89-to-1 ratio; on Nasdaq, a 1.63-to-1 ratio favored advancers.
        The S&P 500 posted 19 new 52-week highs and 6 new lows;
the Nasdaq Composite recorded 52 new highs and 69 new lows.  
  

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Monthly change in U.S. jobs    https://tmsnrt.rs/3OFX0Zi
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 (Reporting by Echo Wang in New York, Shubham Batra and Bansari
Mayur Kamdar in Bengaluru; Editing by Savio D'Souza, Shounak
Dasgupta, Shinjini Ganguli and Louise Heavens)
 ((Shubham.Batra@thomsonreuters.com))