U.S. Stock Futures Fall as Key Jobs Report Looms
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In after-hours trading, Amazon (AMZN) stock dropped over 7% following the e-commerce giant's weaker-than-expected operating income guidance for the third quarter. Meanwhile, Apple (AAPL) shares jumped 2% after the company topped both earnings and revenue estimates.
This follows a subdued regular trading session on Thursday in which the S&P 500 and the Dow Jones closed down 0.4% and 0.7%, respectively. Also, the Nasdaq Composite ended marginally lower.
unemployment rate is expected to have increased.
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Miami Herald
an hour ago
- Miami Herald
Major Wall Street analyst revamps S&P 500 target amid tumble
The stock market has notched big gains since spring, with the S&P 500 and Nasdaq rallying over 25% and about 40% from April 8 through last week's highs. The major indexes' gains have come in mostly a straight line; however, disappointing economic data, renewed tariff concerns, and ongoing Fed interest rate uncertainty did dent the rally late in the week. The S&P 500 and Nasdaq tumbled 2.9% and 3.8% from their highs to close at about 6238 and 20650 on Friday after the Fed kept interest rates unchanged on Wednesday, and inflation and jobs data on Thursday and Friday disappointed. The dips may not be too surprising giving August is historically a seasonally weak month for stock market returns. Nevertheless, investors are likely wondering what could happen to stocks next following last week's swoon. Image source: Michael M. Santiago/Getty Images The S&P 500 was arguably in rarified air, given that it had reached all-time highs and its forward price to earnings ratio, a key valuation measure calculated by dividing price by earnings, was 22.4, according to FactSet-a level last seen when the S&P 500 peaked in February before a 19% tariff-fueled drubbing. Few expect a repeat of that nearly bear market reckoning. Still, August has a dubious track record for lackluster returns, ranking 11th out of 12 months since 1950, with an average loss of 1.2% in post-Presidential election years, according to the Stock Trader's Almanac. The poor seasonality and emerging headwinds, including lackluster jobs data, concerning inflation, and newly installed tariffs, aren't lost on BTIG Chief Market Technician Jonathan Krinsky. In a research note delivered to clients this weekend, Krinsky pointed to a potential return of volatility through early October, when seasonal headwinds shift to tailwinds. A key reason behind Krinsky's short-term concern is that the S&P 500 breached its 20-day moving average on Friday. Many technical analysts use either the 20-day, or 21-day, moving average as a key short-term indicator. When the market is trading above it, gains often beget gains. When it's below it, it can mean trouble ahead. More Wall Street Analysts: Veteran analyst drops surprise call on Tesla ahead of earningsBest Buy analyst, focused on earnings growth, reworks stock price targetVeteran trader posts a major warning for the stock market Krinsky thinks the S&P 500 could retreat to 6,100, which may happen more quickly than many expect. He pointed to last year, when the S&P 500 sold off by about 8% from high to low in the first few days of August. "History doesn't repeat, but it often rhymes," said Krinsky. "A quick move back to 6,100 would be -5% from the highs and would likely be buyable initially." Krinsky isn't alone in pointing out that the time of year isn't great for equities. "Post-election years tend to peak right about now and bottom in late October," wrote Carson Investment Research analyst Ryan Detrick on X. "No, this doesn't mean it has to happen this time, but some seasonal turbulence would be perfectly normal." In addition to the seasonal weakness, Krinsky noted that utilities, considered a defensive stock market sector, have been rallying, recently notching 52-week highs. He also sees a potential opportunity for software stocks, which have underperformed semiconductor stocks, to close the gap, given they tend to have done better than semis in August, outpacing them in 9 of the past 13 years. Stocks initially headed higher early last week on the heels of better-than-expected earnings results from technology bellwethers Microsoft and Meta Platforms. However, optimism faded on Wednesday, when the Federal Reserve chose to keep interest rates unchanged at 4.25% to 4.50%, disappointing many, including President Trump, who has been arguing for big cuts all year. Related: Jobs report shocker resets Fed interest rate cut bets Adding to investors' concerns, the Personal Consumption Expenditures index showed that inflation accelerated to 2.6% in June from 2.4% in May and 2.2% in April. Many expect tariffs instituted in the spring are only now causing inflation to rise. It may worsen in the coming months following newly announced tariffs after the reciprocal tariff pause ended on August 1. President Trump announced a slate of tariffs ranging from 10% to 41%, including a 35% tariff on Canada, one of our top three trading partners. Jobs data last week also suggests the economy is wobbling. The latest report from the Bureau of Labor Statistics showed just 73,000 jobs created in July, below the 100,000 expected. Worse, the BLS had previously said the US economy created 147,000 jobs in June. It revised that figure down to 14,000. May's job numbers were similarly lowered to 19,000 from 144,000. The significant revisions drew the ire of President Trump, who fired BLS Commissioner Erika McEntarfer after the report, saying the numbers were "RIGGED in order to make the Republicans, and ME, look bad." Related: Apple CEO drops bombshell about its future The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
an hour ago
- Yahoo
Is Investing in the Nasdaq-100 a No-Brainer Move?
Key Points The Nasdaq-100 index features the top growth stocks in the world, and tracking it has resulted in significant returns for long-term investors. Since the tariff pause back in April, both the Nasdaq and the S&P 500 have soared more than 25%. Heightened valuations, however, could mean more limited returns in the short term. 10 stocks we like better than Invesco QQQ Trust › Investing in the top growth stocks on the Nasdaq stock exchange has generally been a good move for investors. And by tracking the Nasdaq-100, an index of the most valuable nonfinancial stocks on the exchange, investors can easily get exposure to the best and brightest growth stocks. But with valuations soaring this year and the Nasdaq Composite and S&P 500 index hitting record levels, is it still a no-brainer option to invest in an exchange-traded fund (ETF) that tracks the Nasdaq-100? Or is now the time to shift away from the index and perhaps pivot into safer investments? Why investing in the Nasdaq-100 makes sense for long-term investors If you're a long-term investor who just wants to add an ETF to your portfolio that you can forget about, the Invesco QQQ Trust (NASDAQ: QQQ) can be a compelling option. It tracks the Nasdaq-100, and in just the past five years it has more than doubled in value and outperformed the overall market. Since the ETF tracks an index of top stocks, it means that you don't have to worry about keeping tabs on how individual stocks are doing; the Nasdaq-100 will automatically adjust and add companies that are rising in value while also dropping ones which are no longer among the top 100. This strategy can make the ETF a good no-nonsense means of investing in many of the best growth stocks in the world. There's simply not much of a substitute for investing in growth stocks. While safer options can result in less volatility in a given year, you're likely to perform far better by targeting the fastest-growing companies in the world. Over the past decade, the S&P 500 has generated total returns (including dividends) of more than 260%. While that's impressive, the Invesco QQQ Trust is up by over 450% over that same period. It has been the better investment by far. Should you be worried about the market being at record levels? One reason you might be thinking twice about investing in growth stocks or tracking the Nasdaq-100 index right now is that stocks are around record levels. Both the Nasdaq and the S&P 500 have hit record highs this year, despite question marks looming about what's ahead for the economy. Since April 8, which is around the time "reciprocal tariffs" were paused, the S&P 500 has rallied by nearly 30% while the Nasdaq is up close to 40%. There has been a lot of economic volatility, and there is definitely the danger that if investors become concerned about tariffs, stocks could be headed back to the lows they reached in April. I certainly wouldn't rule out a potential decline in the market in the near future, and this is a risk for investors to consider, especially in light of how hot stocks have been in recent months. Is it still a good time to invest in the Nasdaq-100? If you're investing for the long term, i.e., five years or more, then it can still be a good option to invest in a fund such as the Invesco QQQ Trust. There is always going to be risk and uncertainty when you have exposure to growth stocks, particularly tech growth stocks, where valuations can become enormous. However, even if there is a bad year for the markets in the near future, it's likely to recover, just as it always has. As long as the U.S. economy continues to grow, the S&P 500 is likely to rise in value as well. And with the Nasdaq-100 focused on growth, it may continue to outperform. If your investing time frame is shorter than five years, then it may be a good idea to focus on safer stocks to preserve your capital or even to put money into bonds. But if you're in it for the long haul, then it can still be a no-brainer move to invest in the Nasdaq-100. Should you buy stock in Invesco QQQ Trust right now? Before you buy stock in Invesco QQQ Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Invesco QQQ Trust wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Is Investing in the Nasdaq-100 a No-Brainer Move? was originally published by The Motley Fool
CNBC
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CNBC Daily Open: There's no return policy for jobs numbers
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