Shares of industrial and transportation companies edged higher amid strong jobs data.
Investors had come to widely believe that the Federal Reserve could pivot to cutting interest rates as early as the first half of 2023, given signs of cooling activity across the economy. That would have been a balm for markets, which have tumbled this year as the Fed has swiftly raised interest rates to combat stubbornly high inflation.
But Friday's data showed the labor market was doing anything but cooling. The labor market added 528,000 jobs in July -- more than doubling what analysts had estimated -- and returning payrolls to their prepandemic level. Meanwhile, the unemployment rate fell to 3.5%, near historic lows.
In corporate news, Deutsche Post said earnings increased in the second quarter, beating expectations, and confirmed its earnings target for the year.
Virgin Galactic shares fell 16% after the company delayed its initial launch of tourists into space.
Write to Amy Pessetto at amy.pessetto@dowjones.com
(END) Dow Jones Newswires
08-05-22 1709ET
