Updated: Sep 5
The market declined slightly on Friday with light trading and a jobs report substantially below expectations. For the week, the SPX was up 0.6%, DOW down 0.2% and Nasdaq up 1.5%
The Bureau of Labor Statistics reported that total nonfarm payroll employment rose by 235,000 in August, well below the estimated 720,000 and the 943,000 for July. The average monthly job growth for 2021 has been 586,000. The slowing of economic growth is attributed to increased infections from the Delta variant affecting leisure and hospitality jobs along with persistent shortages of raw materials. It is uncertain if the slowdown in hiring will affect the Fed’s decision about when it will reduce its economic stimulus.
The unemployment rate dropped 0.2% to 5.2% in August, in line with estimates. The previous value was 5.4%. The number of unemployed is 8.4 million. Prior to the pandemic in February 2020, the unemployment rate was 3.5% and number of unemployed 5.7 million. The labor force participation rate was stable at 61.7% which is 1.6% lower than February 2020. The employment to population ratio is 58.5% compared with a low of 51.3% in April 2020 and 61.1% in February 2020.
Average hourly earnings rose by 0.6%, the fourth consecutive month of gains. The estimate was 0.3% and the value for July 0.4%. Wages have increased 4.3% year on year. The average workweek was unchanged at 34.7 hours.
The Services PMI from the Institute of Supply Management for August was 61.7, similar to the estimate of 61.7. The July value was 64.1. The Business Activity Index was 60.1 down 6.9%, New Orders Index 63.2 down 0.5%, Employment Index 53.7 down 0.1%. and Supplier Deliveries Index 69.6 down 2.4%. Values above 50 indicate economic growth. Markit PMI also showed weakening in the rate of business expansion with a value of 55.1 down from 59.9. This is the lowest value in eight months.
Market are closed for Labor day September 6
No major economic news for September 7.
The SP 500 is down by 0.03% to close at 4535.43. The index is up 0.58% over five days, up 2.23% over one month, up 7.22% over three months and up 20.75% over one year.
The trailing P/E is 31.26 compared to 36.19 one year ago and estimated future P/E 22.26. Dividend yield is currently 1.31 compared with 1.75 one year ago.
Leading stocks were MRNA up 4.79%, ETSY up 3.23%, NOW up 2.77%, COG up 2.65% and BAX up 2.04%.
Trailing stocks were CCL down 4.41%, RCL down 4.22%, PVH down 3.81%, NCLH down 3.38% and NOV down 2.78%.
The Dow Jones industrial Average is down by 0.21% to close at 35369.09. The DOW is down 0.24% over five days, up 0.46% over one month, up 1.76% over three months and up 25.72% over one year.
The trailing P/E is 24.09 compared with 27.78 year ago and an estimated future P/E of 19.26. The current dividend yield is 1.82% compared with 2.20 one year ago.
Leading stocks were CRM up 1.11%, HD up 0.79%, WMT up 0.46%, AAPL up 0.42% and V down 0.41%.
Trailing stocks were AXP down 1.70%, BA down 1.20%, HON down 1.13%, WBA down 0.95%, and DOW down 0.80%.
The NASDAQ composite is up by 0.21% and closed at 15363.52. NASDAQ is up 1.55% over five days, up 3.56% over one month, up 11.21% over 3 months and up 35.80% over one year.
Leading stocks were IPHA up 47.13%, VERA up 32.72%, MDB up 26.33%, DPRO up 24.10% and APOP up 21.64%.
Trailing stocks were FBRX down 82.30%, ANY down 32.34%, AGIL down 31.92%, CLIR down 26.91%, and FCUV down 22.05%.
The MidCap SP400 is down by 0.48% to close at 2760.55. The SP400 is down 0.24% for the past 5 days, up 1.59% for the past month, up 1.17% for the past 3 months and up 45.46% over the past year.
Leading stocks were GEF up 3.76%, EQT up 3.53% and XEC up 3.13%.
Trailing stocks were GME down 5.04%, JWN down 4.61% and VSAT down 4.47%
The SmallCap SP600 is down by 0.60% to close at 1369.73. The SP600 is down 0.39% for the past 5 days, up 0.99% for the past month, down 1.02% for the past 3 months and up 53.59% over the past year.
Leading stocks were ALEX up 8.33%, SLQT up 7.77% and BNED up 6.52%.
Trailing stocks were NBRWF down 11.40%, NX down 7.96% and VCEL down 5.64%.
The CBOE VIX is at 0.00% and closed at 16.41. The VIX is up 0.12% over five days, up 1.61% over one month, down 0.06% over three months and down 46.63% over one year.
On the New York stock exchange 1331 stocks advanced and 1911 declined, while on Nasdaq 1828 advanced and 2502 declined.
There were 193 new 52 week highs and 22 new 52 week lows on NYSE with 186 new highs and 44 new lows on NASDAQ.
The 2 year Treasury note yield is 0.208% and 10 year is 1.326%. The 10 year yield is up 1.2% over five days, up 2.3% over one month, down 22.8% three months ago, and up 60.5% one year ago.
SP500 Sector Performance % change
Information Technology +0.38
Communication Services +0.11
Health Care +0.11
Real Estate +0.04
Consumer Discretionary +0.01
Consumer Staples -0.05
Information Technology has been up 0.88% over five days, up 2.85% over one month, up 13.87% over three months and up 34.78% over one year.
Utilities has been up 1.39% over five days, up 2.52% over one month, up 6.35% over three months and up 17.21% over one year.