The morning sentence was flat. The closing sentence is red.
The Dow lost 272.51 points, 0.5%, to 53,413.60. The S&P 500 dropped 29.30, 0.4%, to 7,718.41. The Nasdaq slipped 77.07, 0.3%, to 26,506.99. For the week, the three indexes were basically unchanged. Monday is Labor Day. The tape is closed.
CME FedWatch had a 58.4% chance of a 25-basis-point hike at the September 15β16 meeting, up from 49.4% after Waller. That is the jobs print, translated.
What actually moved
Consumer discretionary led the losers. Industrials and tech eked out modest gains. Semiconductors jumped 3.4% and are still down 17.8% this quarter. Software dropped 2.1%.
Lululemon closed β17.4% after the outlook cut we already told you about. Fair Isaac closed β16.7%. TransUnion β5.9%, Equifax β6.4%. Adobe fell 6.7% after it said longtime CEO Shantanu Narayen will be succeeded by insider Anil Chakravarthy.
Ryan Detrick at Carson Group: the labor market snapped back, and hike odds ticked up because the economy is running a little hot. βWeβll get a lot more clarity on inflation next week at the consumer and producer levels.β
What this means for you
A Friday red close into a three-day weekend is not a new cycle. It is a market that spent Thursday on Waller and Friday on 162,000. CPI is next.
Bottom line: muted at the open, red at the close, flat on the week. 58% is the new coin flip. The Fed still has to read prices.
GLHR NEWS explains the news. Not investment, tax, or trading advice. Do your own work before you act.
