Major indices show solid showing driven by leadership from mega-cap and other growth-oriented pockets of the market.

Consumer Discretionary (XLY) is the best performing sector driven by gains in Amazon (AMZN) and Tesla (TSLA). Airbnb (ABNB) is also giving a boost to the sector after delivering better-than-expected quarterly results. Homebuilders are also higher this afternoon as lower yields provide support to the sector and other rate-sensitive areas.

There are few pockets of weakness this afternoon with Energy (XLE) lagging the most as the group gives back some of yesterday’s gains.

This morning’s jobs report is now adding uncertainty ahead of the Fed’s September decision.

Earnings Update

Thus far 88% of the S&P 500 companies have reported quarterly results with 86% beating on earnings. Moreover, this has been the highest revenue growth seen since the fourth quarter of 2021.

Economic Data

This morning's job report saw unemployment ticking down to 4.1% while wage growth slowed. The labor force participation rate declined to its lowest in more than five years at 61.4%. In addition, average hourly earnings increased just 0.053% from June and are up 3.2% over the past year, the slowest annual pace in over 5 years.

It was an interesting report where goods producing added more jobs than services.

July NY Fed consumer survey saw median inflation expectations easing at the 1-year to 3.6%, the three-year remaining at 3.3% and the 5-year period unchanged for an 11^th month at 3%.

Positively the probability of finding a job increased by 1.3% to 46.2%, the highest since November.

Have a great weekend!