Marketbites: Market Braces For Jobs Report
Updated: Sep 27, 2022
Portfolio Manager Commentary:
It has been all downhill since Fed Reserve Chair Jerome Powell gave his speech last Friday in Jackson Hole. Wednesday’s trading session ended with a fourth straight day of losses. The Dow dropped -0.88%, the S&P 500 fell -0.78%, and the Nasdaq declined -0.56%. Similar to Tuesday, stocks started the day in the green yesterday before ending lower capped off by a last-minute selloff.
This Friday, economists are estimating that the jobs report will show 318,000 jobs to have been added throughout August, which is lower than July’s number of 528,000. Markets want to see the labor market cool down since it may make the Fed more open to slowing down rate hikes. A change in rate policy could lighten investor sentiment. On the contrary, should the labor market results come in strong, there is anticipation that the markets could fall even further.
Bed, Bath, & Beyond stock plunged -21% after announcing it will lay off 20% of its employees and close 150 stores. Snap rose 8.6% on a report showing plans to lay off 20% of its 6,400 employees.
Chart of the Day:
The pound is currently on track for its steepest monthly decline since the wake of the Brexit referendum in 2016.
Source: Financial Times
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