Stock market today: Wall Street opens higher, regaining some momentum after a rare down week
Aug 6, 2023, 8:57 PM | Updated: Aug 7, 2023, 6:38 am
NEW YORK (AP) — Stocks are rising in early trading as Wall Street regains some momentum after its big rally for the year took a pause last week. The S&P 500 was 0.5% higher Monday, coming off its first losing week in the last four. The Dow was up 208 points, or 0.6%, and the Nasdaq composite was up 0.5%. Berkshire Hathaway rose 1.6% after the company run by Warren Buffett reported stronger results than analysts expected. Besides profit reports from some media giants like The Walt Disney Co. and Fox, this week markets will also get highly anticipated reports on inflation.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
NEW YORK (AP) — Wall Street was poised to open with modest gains early Monday, with more inflation data and corporate earnings on the way after U.S. employment reports helped to drag markets down last week.
Futures for the Dow Jones industrials ticked up 0.2% before the bell, while futures for the S&P 500 rose 0.3%.
Last week, a highly anticipated U.S. jobs report said hiring was a touch weaker last month than economists expected, though wages for workers rose more than forecast.
Although a strong job market is generally a positive sign for the economy, the U.S. Federal Reserve could see particularly strong wage growth as putting greater pressure on prices. That could translate to another interest rate hike from the U.S. central bank, which has been raising interest rates for a year-and-a-half to try to extinguish inflation not seen since the early 1980s.
However, a moderating jobs markets may help cool inflation from last summer’s peak.
On Thursday, the government issues its report on prices at the consumer level, with data on wholesale prices to be released on Friday. Both reports will be closely considered by Fed officials, who have signaled they are open to another quarter-point hike this year.
Markets are also anticipating more corporate earnings this week.
Big Tech stocks have led Wall Street’s charge this year. Like Amazon and Apple, which reported earnings last week, most companies in the S&P 500 have reported stronger profits for the spring than analysts expected, though expectations were relatively low.
Tyson Foods on Monday reported a quarterly loss of $417 million and said it would shut down four plants in Arkansas, Indiana, Missouri and Missouri. The company closed its corporate offices in Chicago and South Dakota late last year and consolidated its workforce in Arkansas. In March it announced the closure of two plants in Arkansas and Virginia in order to better use available capacity at other facilities.
Tyson laid off 15% of its senior leadership and 10% of its corporate workers in April as it wrestled with steep inflation on labor, grain and other inputs.
The Walt Disney Co., Lyft, UPS, and Wendy’s all report their most recent quarterly earnings this week.
In Europe at midday, France’s CAC 40 slid 0.2%, while Germany’s DAX and Britain’s FTSE 100 each fell 0.5%.
Japan’s benchmark Nikkei 225 recouped losses earlier in the day and gained 0.2% to finish at 32,254.56. Australia’s S&P/ASX 200 shed 0.2% to 7,309.20. South Korea’s Kospi fell 0.9% to 2,580.71. Hong Kong’s Hang Seng changed little at 19,537.92, while the Shanghai Composite dropped 0.6% to 3,268.83.
“Local stocks appear to be latching onto the U.S. downswing from Friday as investors are still absorbing a down week for most markets,” Stephen Innes at SPI Asset Management said of Asian trading.
In energy trading, benchmark U.S. crude lost 78 cents to $82.04 a barrel. Brent crude, the international standard, slipped 75 cents to $85.49 a barrel.
In currency trading, the U.S. dollar edged up to 142.25 Japanese yen from 141.71 yen. The euro cost $1.0983, down from $1.1012.
Kageyama reported from Tokyo; Ott reported from Silver Spring, Md.