The stock market is experiencing a rally as anticipation builds ahead of the August payrolls report. This follows a month of mixed trading in August. Futures tied to the Dow Jones Industrial Average show promise with a gain of 125 points, translating to 0.40% growth. Meanwhile, S&P 500 futures indicate a rise of 0.40%, and Nasdaq 100 futures follow suit with a 0.20% climb.
Earnings Surprises Boost Confidence
The morning brings good news for certain companies, further fueling investor optimism. Database software provider MongoDB and tech giant Dell Technologies have both exceeded expectations, seeing impressive hot stock gains of 6.00% and 9.00% in extended trading, respectively. The athletic apparel retailer Lululemon Athletica also delivers a strong performance by surpassing Wall Street’s estimates, propelling its shares up by 2.00%.
Stock Market Patterns: Awaiting the August Jobs Report
All eyes are on the imminent release of the August jobs report, scheduled for 8:30 a.m. ET. According to economists polled by Dow Jones, the U.S. economy is anticipated to add 170,000 jobs last month. Investors and traders are holding their breath, hopeful that this report will indicate a meaningful economic slowdown. Such a slowdown might give the central bank a compelling reason to halt its benchmark interest rate hikes temporarily.
Will the Stock Market Hit a Bottom? Inflation Concerns and Fed Expectations
Alex McGrath, Chief Investment Officer for NorthEnd Private Wealth, provides some insight into the situation. He notes, “We are in the camp that we will get at least one more rate hike out of the Fed.” This perspective is based on recent increases in commodity prices. They should have an impact on personal consumption expenditures and consumer price index numbers from August to September. McGrath speculates, “If you kind of get in that sticky range where inflation is not decreasing or even increasing slightly, I think that’s going to spur further Fed action, and whether that happens in September or October, it’s anyone’s best guess.”
Reflection on a Turbulent Month for Stocks
As Thursday marked the close of a turbulent month for stocks, there were glimmers of hope. Recent positive sessions managed to reduce the monthly losses that stock indexes had incurred. The S&P 500 saw a decline of 1.77%, while the Nasdaq experienced a drop of 2.17%. The 30-stock Dow Jones Industrial Average ended August with a loss of 2.36%.
Stock Market Rally: The Biggest Moves Premarket
- Dell Technologies: The company surged 10.50% after surpassing analysts’ second-quarter expectations, with adjusted per-share earnings of $1.74 and revenue of $22.93 billion. Morgan Stanley named Dell a top option in IT hardware. Making it one of the hot stocks today.
- MongoDB: The company advanced 5.00% after exceeding Wall Street expectations in its latest quarter, posting adjusted earnings of 93 cents per share on revenue totalling $423.8 million for the second quarter.
- Lululemon Athletica: The athletic apparel retailer saw shares rise by 2.30% in premarket trading after reporting earnings per share for its second fiscal quarter at $2.68, topping expectations.