Stock Market Reverses Early Losses To Trade Mixed At Noon; Job Openings Soften

The stock market reversed early losses to trade mixed by midday amid signs the job market is beginning to soften. Uber (UBER) soared on better-than-expected Q2 results.




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The Nasdaq composite led the major indexes, gaining 0.5%. The S&P 500 gained 0.1% while the Dow Jones Industrial Average was down 0.3%. The small-cap Russell 2000 was up 0.5%. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, rose 1.3%.

Volume rose on the Nasdaq and the NYSE compared to the same time on Monday.

US job openings fell in June to their lowest level in nine months. Hiring slowed too, in a sign the tight job market may be loosening.

US Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 32693.98 -104.42 -0.32
S&P 500 (0S&P5) 4123.57 +4.94 +0.12
Nasdaq (0NDQC ) 12427.48 +58.50 +0.47
Russell 2000 (IWM) 188.14 +0.96 +0.51
IBD 50 (FFTY) 28.87 +0.38 +1.33
Last Update: 12:10 PM ET 8/2/2022

The Labor Department on Tuesday said there were a seasonally adjusted 10.7 million job openings in June, down from 11.3 million in May. That was the lowest level since September, and below the 11.0 million estimate by Econoday.

Stock Market Mixed As Job Openings Soften

“The labor market may be cooling off, but the temperature decline is far from a plunge,” said Nick Bunker, Indeed’s hiring lab director of economic research. “Demand for new workers remains robust, layoff rates are very low and workers continue to quit their jobs at high rates.”

Meanwhile, House Speaker Nancy Pelosi’s (D-Calif.) trip to Taiwan is affecting some multinational stocks. China has issued multiple warnings ahead of the event, threatening “severe punishment” if she lands in the disputed territory. Still, the trip having the hardest hit in China, where the Hong Kong Hang Seng Index dropped 2.36% and the Shanghai composite fell 2.26%.

The 10-year Treasury yield jumped 11 basis points to 2.69%. Meanwhile, US oil prices climbed to $95.21 per barrel.

Uber Technologies (UBER) reported second-quarter results early Tuesday that came in ahead of analyst views. Uber stock jumped on the news. The ride-sharing service is on pace for its largest percentage increase since Nov. 4, 2020, when it rose 14.59%, according to Dow Jones Market Data.

Uber shares haven’t formed a base but are now well above its 50-day moving average. Still, they are a long way below its 200-day moving average.

Share in Arista Networks (ANET) rose on a Q2 earnings and revenue beat. However, some analysts caution that revenue growth could slow in 2023.

“Arista would not guide for 4Q, but assuming the midpoint of 3Q, YTD sales will grow 40%. 2022 growth should be 35% to 40%,” said Simon Leopold, analyst at Raymond James.

Fertilizer Plays Report Strong Earnings

Fertilizer plays Mosaic (MOS) and IBD 50 component CF Industries (CF) posted strong Q2 results. Mosaic fell short of analysts’ high expectations, but CF scored a solid beat. Both stocks marched higher.

This latest round of earnings reports comes as falling fertilizer prices have finally cooled off one of the stock market’s hottest groups since early 2021.

Investment bank Cowen Group (COWN) shares climbed 8% after the company announced a definitive agreement for Toronto Dominion Bank (TD) to acquire Cowen in an all-cash transaction valued at $1.3 billion, or $39 for each share of common stock. Shares of TD dropped 0.8%.

Pinterest (PINS) soared more than 10% after Q2 results. In addition, Elliot Investment announced that it has become the company’s largest investor. Pinterest missed on earnings but beat on revenue in a tough market.

The social media company reported adjusted earnings of 11 cents per share on revenue of $666 million. Analysts expected Pinterest to report earnings of 18 cents on revenue of $665 million, according to FactSet.

More Earnings On Deck

Advanced Micro Devices (AMD) is a Nasdaq 100 speculative favorite that reports after Tuesday’s close. The company is expected to post a profit of $1.04 per share on $6.5 billion in second-quarter sales.

PayPal (PYPL) also reports second quarter earnings after the stock market closing bell. The digital payments platform fell an astonishing 77% in the calendar year ending mid-July and regained a few percentage points into August.

FactSet estimates a second-quarter profit of 87 cents per share on $6.78 billion in sales.

Follow Michael Molinski on Twitter @IMmolinski

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