JPMorgan's Lebovitz Sees 5,100 as Possible S&P 500 Entry Point
Lebovitz, who helps shape the allocation priorities of the $3.6 trillion money manager, has been waiting for the S&P 500 to hit the 5,100 level — which it broke below on Friday afternoon.
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Yahoo
6 minutes ago
- Yahoo
Shockingly bad jobs report reveals a months-long stall and may trigger Fed rate cuts soon. ‘Powell is going to regret holding rates steady'
U.S. payrolls grew by just 73,000 last month, well below forecasts, but downward revisions to prior months stunned Wall Street even more, showing that the labor market was much weaker than thought over the spring. That may prompt the Federal Reserve to lower rates sooner rather than later, which President Donald Trump has been demanding for months. The U.S. labor market looks much weaker than previously thought, and Wall Street now expects the Federal Reserve to resume rate cuts sooner rather than later. The Labor Department reported Friday that payrolls grew by just 73,000 last month, well below forecasts for about 100,000. But downward revisions for prior months shocked investors even more, revealing that the labor market came to a near standstill over the spring. May's tally was cut from 144,000 to 19,000, and June's total was slashed from 147,000 to just 14,000, resulting in a combined cut of 258,000. The average gain over the last three months is now only 35,000. The news came just days after the Fed kept rates steady again with Chairman Jerome Powell signaling a continued desire to wait for more data to see how President Donald Trump's tariff would impact inflation, which is still running about the central bank's 2% target. 'Powell is going to regret holding rates steady this week,' Jamie Cox, managing partner for Harris Financial Group, said in a note. 'September is a lock for a rate cut and it might even be a 50-basis point move to make up the lost time.' The unemployment rate also edged up to 4.2% from 4.1%, even as the labor force shrank. Meanwhile, U.S. factories continued to slump and cut 11,000 jobs last month after shedding 15,000 in June and 11,000 in May amid uncertainty over Trump's trade war. Stocks plummeted on the jobs data, with the S&P 500 down 1.7% and the Nasdaq down 2.3%. The 10-year Treasury yield sank more than 11 basis points to 4.247% as Wall Street priced in a rate cut at the Fed's meeting next month and more later in the year. After the jobs report, Trump reiterated his months-long demand for the Fed to lower rates, while Cleveland Fed President Beth Hammack stood by the central bank's decision on Wednesday to keep policy steady. 'Headline NFP at 73k is a miss, but perhaps more concerning is -258k net revisions to the prior two months. These revisions put May's headline NFP at 19k and June's at 14k,' Adam Hetts, global head of Multi-Asset and portfolio manager at Janus Henderson Investors, said in a note. 'Had those figures been the initial prints a month or two ago it would have significantly changed the labor market narrative over the entire summer. Indeed, odds of a September rate cut are increasing significantly on the back of this data release.' This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 minutes ago
- Yahoo
Top Stock Movers Now: Amazon, Newell Brands, Reddit, and More
Key Takeaways U.S. equities sank at midday when the U.S. employment report came in much worse than anticipated and President Donald Trump announced more tariffs. Concerns about profit and its cloud business sent shares of Amazon down. The jobs report sent bond yield plunging, boosting shares of D.R. Horton and other home builders.U.S. equities plunged at midday on a weaker-than-expected jobs report and President Donald Trump's announcement of new tariffs. The Nasdaq lost nearly 2%, and the Dow Jones Industrial Average and S&P 500 slid more than 1%. Amazon (AMZN) shares slumped when the online retailing giant gave a weak profit outlook and questions were raised about its cloud business. Shares of Newell Brands (NWL) tumbled after the Sharpie and Rubbermaid parent lowered its guidance because of higher costs from tariffs. Tariff impacts and a soft U.S. market led Eastman Chemicals (EMN) to warn about current-quarter profit, sending shares plunging. Shares of D.R. Horton (DHI) and rival home builders jumped after the employment report sent bond yields tumbling and lifted hopes of a Federal Reserve interest rate cut. Monolithic Power Solutions (MPWR) shares gained when the semiconductor manufacturer beat profit and sales estimates on higher demand for its chips for cars and storage and computing. Shares of Reddit (RDDT) took off with the social media site also exceeding earnings and revenue forecasts as its daily active users increased. Oil futures slid. The price of gold advanced. The U.S. dollar lost ground to the euro, pound, and yen. Major cryptocurrencies traded lower. Read the original article on Investopedia Sign in to access your portfolio
Yahoo
7 minutes ago
- Yahoo
Trump says he will fire lead official on economic data as stocks shudder
US President Donald Trump said he would fire the head of the agency charged with publishing some of America's most closely watched economic data, after a weaker-than-expected jobs report stoked further alarm about his tariff policies. His decision to move forward with plans to sharply raise tariffs on goods from countries around the world had already sent financial markets in the US shuddering. In the US, the three major indexes dropped, with the S&P falling 1.9% by mid-afternoon. That followed earlier sell-offs in Europe and Asia, as investors dumped shares of firms such as South Korean steel manufacturers and German truck-maker Daimler. Trump's plans leave most goods coming into the US facing new taxes of 10% to 50%, depending on their origin, and will lift tariff rates in the US to the highest levels in nearly a century. Trump says the measures will rebalance global trade and boost US manufacturing. But analysts say they will raise prices for businesses and consumers in the US and weigh on the US and global economies, as sales, hiring and investment slow. This week has revived fears about economic damage, as companies update investors on their costs and new data points to slowdown in the US. Employers in the US added just 73,000 jobs in July, according the monthly Labor Department report published on Friday. It also dramatically revised estimates of job growth in May and June, with far fewer gains than previously thought. "The economic data since the Liberation Day announcements did not reflect that sharp deterioration in economic activity, or at least not in obvious ways. This was the week that changed," analysts at Wells Fargo wrote on Friday. The revisions appeared to spur Trump to fire the commissioner of labor statistics, Erika McEntarfer, in a post on social media. "We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY," he wrote on social media, referring to the large revisions to the May and June jobs numbers. Trump also lashed out at Federal Reserve chairman Jerome Powell, whom he has angrily criticised in recent months. Shares in the US opened lower in the morning, with losses accelerating over the course of the afternoon. France's CAC 40 closed down 2.9%, while German's DAX fell 2.6%. In the UK, the FTSE fell 0.7%. Earlier the leading index in South Korea fell 3.8%, the Hang Seng index in Hong Kong dropped 1% and Japan's Nikkei fell 0.6%. When Trump first put forward his plans in April, shares in the US tumbled more than 10% in a week, the concerns spreading to the dollar and bond markets. The stock market recovered after he suspended some of the most drastic measures, leaving in place a less punishing, more expected 10% levy. In recent weeks, indexes in the US have been trading around all-time highs. "The reality is Trump got emboldened by the fact that markets came right back," Michael Gayed, portfolio manager for The Free Markets ETF told the BBC's Opening Bell. "Now he's going to try his luck again." The latest measures are less extreme than what Trump first put forward in April, when goods from key players in southeast Asia, such as Vietnam, were facing tariff rates of more than 40% and a tit-for-tat exchange with China drove US tariffs on its exports surge to at least 145%. But the tariffs still make for a radical change for the US, for decades a champion of free trade. The plans include a minimum 10% tax on most goods entering the US, with major trade partners, including the European Union, Japan, South Korea, Vietnam face tariffs in the range of 15% to 20%. Goods from China are set to facing new 30% levies, while exports from some other countries, including Switzerland and Laos face even higher duties. The changes, which are set to go into effect on 7 August, will lift the average tariff rate to roughly 18%, up from less than 2.5% as recently as January. Investors had been taking the impact of tariffs in stride, sending shares in the US and elsewhere to new highs in recent weeks. Mr Gayed said markets had become less sensitive to Trump's rapidly changing trade policies, but he saw risks ahead. "The more he just whips around policy, the more the markets will not care, but as the old saying goes, nothing matters 'til it matters and then it's the only thing that matters," he said.
