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U.S. stocks are rising after tech earnings, July jobs report

Published 2023-08-04, 10:08 a/m
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Investing.com -- U.S. stocks were rising as investors digest the latest Big Tech earnings and as the July jobs report showed the economy added fewer positions than expected last month.

By 10:41 ET (14:41 GMT), the Dow Jones Industrial Average was up 193 points or 0.5%, while the S&P 500 was up 0.4%, and the NASDAQ Composite was up 0.5%.

The benchmark Wall Street indices closed lower Thursday, taking a breather after hefty gains during July, with surging bond yields weighing.

Jobs report in spotlight

The tech sector has led the way on the promise of artificial intelligence to the industry and in hope the Federal Reserve would reach the end of its interest rate increases sooner rather than later.

Friday's job report is raising those hopes. The July monthly official jobs report said the economy added 187,000 jobs, lower than the 200,000 new positions expected and indicating that job growth has decelerated to its lowest level since 2020.

The unemployment rate ticked lower to 3.5% from 3.6%.

Apple, Amazon release results

Elsewhere, quarterly earnings continue to emerge although the peak has passed. Roughly 79% of S&P 500 companies have given results, with about 80% surpassing Wall Street expectations, according to FactSet.

Most attention will be on the results after the close Thursday from tech behemoths Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN).

Apple posted higher-than-anticipated quarterly income, thanks in part to strong services demand, but revenue still fell as consumers reined in spending on the iPhone and iPad maker's gadgets.

Growth at Amazon's cloud computing division slowed by less than expected in the second quarter, sparking hopes that the much scrutinized unit will soon see a turnaround from a recent downturn.

Additionally, Airbnb (NASDAQ:ABNB), DraftKings (NASDAQ:DKNG) and Dropbox (NASDAQ:DBX) will be in focus after releasing results after the close Thursday.

Crude gains on extended output cuts

Oil prices rose Friday, on course for the sixth consecutive week of gains on the back of output cuts by Saudi Arabia and Russia, two of the world’s largest producers, tightening global supplies.

Saudi Arabia extended on Thursday a voluntary oil production cut of one million barrels per day until the end of September, while Russia has also said it will cut its oil exports by 300,000 barrels per day next month.

These cuts came just before a meeting of the Organization of Petroleum Exporting Countries and allies later this session, which makes further cuts from the cartel unlikely.

(Oliver Gray and Peter Nurse contributed to this article.)

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