Markets

Stocks Still Losing Altitude After July Payroll Report Raises Odds of September Rate Increase

Stocks remained under heavy selling pressure on Friday after the July payrolls report was seen as providing the Federal Reserve with ammunition it needs to raise interest rates next month. The Dow Jones Industrial Average is in the red for a seventh consecutive day, its longest continuous decline since 2011, while the S&P 500 index breached its 200-day moving average at 2,072.56.

Non-farm payrolls rose 215,000 in July, just barely beating Wall Street estimates of 212,000, while the jobless rate held steady at 5.3%. Hourly earnings increased 0.2% after no change in June.

Equities had been defensive ahead of the jobs report, with more pressure on media stocks, biotechs and the chipmakers heaping more more damage to the Dow and Nasdaq Composite indices. The breach of key technical supports for all three market measures, coupled with the Dow developing a very bearish "Death Cross" technical pattern, with its 50-day moving average crossing below its 200-day moving average, leaving Wall Street bracing for further downside movement.

European equities followed their American counterparts lower but with more restraint as pundits see the U.S. Federal Reserve as moving on interest rates before the Bank of England. EU-zone data was mixed overnight with Germany's trade surplus widening, France's deficit narrowing but industrial production for both declining from month ago levels. The UK trade deficit widened, but not as much as traders were expecting, keeping a floor at sterling vs the dollar at 1.5424.

Crude oil was down 43 cents to $44.22 per barrel. Natural gas was down 4 cents to $2.77 per 1 million BTU. Gold was up $3.30 to $1,093.50 per ounce, while silver was up 22 cents to $14.90 per ounce. Copper was down a penny to $2.33 per pound.

Among energy ETFs, the United States Oil Fund was down 1.21% to $14.70 with the United States Natural Gas Fund was down 1.60% to $13.25. Among precious-metal funds, the Market Vectors Gold Miners ETF was up 1.76% to 13.60 while SPDR Gold Shares were up 0.43% to $104.84. The iShares Silver Trust was up 1.92% to $14.26.

Here's where the U.S. markets stand at mid-day:

NYSE Composite Index down 61.82 (-0.57%) to 10,737.62

Dow Jones Industrial Average down 118.39 (-0.68%) to 17,301.36

S&P 500 down 12.24 (-0.59%) to 2,071.32

Nasdaq Composite Index down 36.89 (-0.73%) to 5,019.55

GLOBAL SENTIMENT

Nikkei 225 Index up 0.29%

Hang Seng Index up 0.73%

Shanghai China Composite Index up 2.26%

FTSE 100 Index down 0.42%

CAC 40 down 0.72%

DAX down 0.81%

NYSE SECTOR INDICES

NYSE Energy Sector Index down 0.96%

NYSE Financial Sector Index down 0.48%

NYSE Healthcare Sector Index down 0.95%

UPSIDE MOVERS

(+) STMP (+28.52%) Beats Q2 estimates and raises FY outlook to in-line to above street estimates

(+) TWOU (+19.34%) Q2 results beat views, guides Q3 below street, FY 15 EPS forecast in-line with estimates

(+) NVDA (+9.83%) Reported better-than-expected EPS and revenue that increased from year ago levels

DOWNSIDE MOVERS

(-) NDLS (-17.90%) Missed estimates and lowered guidance

(-) ANLY(-15.62%) Posts wider Q2 loss, missing street estimates, misses on revenue

(-) ICON (-12.70%) CEO Neil Cole announced resignation

(-) BITA (-12.44%) Reported weak Q3 sales outlook

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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