Stocks Surge on Manufacturing, Services Data

A better-than-expected services PMI helped stocks surge today

Digital Content Manager
Aug 3, 2022 at 4:31 PM
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A better-than-expected services purchasing managers' index (PMI) injected positivity into the markets on Wednesday, soothing Wall Street's fears the economy is slipping into a recession. The Dow added an impressive 416 points, while the Nasdaq and S&P 500 settled firmly in the black as well, as traders rushed back into the technology sector. 

St. Louis Federal Reserve President James Bullard reinforced the notion the U.S. is not in recession territory, and added he expects the central bank to continue hiking interest rates to contain inflation. Strong durable goods orders and manufacturing data for June also boosted stocks today.

Continue reading for more on today's market, including:

  • Airbnb stock blasted with post-earnings bear notes.
  • Upbeat quarterly results boosted Starbucks stock.
  • Plus, why Match stock tumbled today; a pre-earnings look at DBX; and fintech name scores beat-and-raise.

The Dow Jones Average (DJI - 32,812.50) added 416.3 points, or 1.3% for the day. Walt Disney (DIS) led the gainers, adding 4.1%. Chevron (CVX) paced the laggards, falling 2.4%.

The S&P 500 Index (SPX - 4,155.17) rose 64 points, or 1.6% for the day. Meanwhile, the Nasdaq Composite (IXIC - 12,668.16) gained 319.4 points, or 2.6% for the session.

Lastly, the Cboe Market Volatility Index (VIX - 21.95) shed 2 points, or 8.3% for the day. 

Summary 0803 

NYSE and Nasdaq Stats August 3

5 Things to Know Today

  1. Hong Kong-based AMTD Digital (HKD) rose 126% on Tuesday, after a series of trading halts, in a move reminiscent of meme concern GameStop (GME). (CNBC)
  2. Chipmaker and industry leader Advanced Micro Devices (AMD) shared a revenue forecast that was below analysts' estimates, despite posting record quarterly sales. (MarketWatch)
  3. Match stock plummeted after announcing Tinder CEO departure.
  4. Checking in on Dropbox stock ahead of its quarterly earnings call.
  5. Fintech stock draws out bullish analyst attention on beat-and-raise.

Earnings August 3 2022

 Unusual Options Activity August 3

Oil Prices Plummet on Higher Crude, Gas Inventories 

Oil prices settled lower on Wednesday. Black gold erased gains in the wake of a decision from the Organization of Petroleum Exporting Countries and its allies (OPEC+) to modestly increase its September production target. What dragged prices lower was a surprise increase in U.S. crude and gasoline inventories. September-dated crude shed $3.76, or 4%, to settle at $90.66 per barrel. 

Gold prices were also lower, snapping a five-day win streak -- their longest since April. Weighing on the safe haven asset was rising Treasury yields and a stronger U.S. dollar, as well as comments from Richmond Fed President Thomas that aggressive rate hikes are still needed. December-dated gold fell $13.30, or 0.7%, to close at $1,776.40 an ounce.

 

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