Stock market today: Stocks dip but notch weekly wins after jobs report smashes expectations

US stocks wobbled on Friday, after a jobs report seen as pivotal to expectations for interest-rate cuts showed much stronger hiring growth than expected.

The S&P 500 (^GSPC) fell 0.1%, while the Dow Jones Industrial Average (^DJI) gave up 0.2%, coming off a lackluster session Thursday for the three major gauges. The tech-heavy Nasdaq Composite (^IXIC) shed about 0.2%.

Despite the lackluster Friday session, all three indexes logged wins for the week.

Investors have lifted stocks on the expectation that further data will reveal more evidence of an economic cooldown. But the Labor Department report offered another signal that parts of the economy are too hot for the central bank's fight against inflation, feeding into a narrative of keeping rates higher for longer.

The highly anticipated May jobs report reinforced the idea that pulling back rates from their two-decade high likely won't come until the Fall.

The US economy added 272,000 jobs in May, smashing expectations. However, the unemployment rate did tick higher, rising to 4.0%.

Read more: How does the labor market affect inflation?

Elsewhere in markets, GameStop (GME) booster Keith Gill, aka "Roaring Kitty," live streamed his latest thinking on the video game retailer, saying that he believes in the leadership of the company.

Gill confirmed that his positions in GameStop are his and that he is not working with institutional investors. The event marked his first live YouTube appearance since he helped ignite the meme stock rally three years ago. But his event wasn't enough to send the stock in a positive direction. GameStop shares closed down nearly 40%.

The completion of Nvidia's (NVDA) 10-for-1 stock split is expected after the market closes. A midweek rally briefly vaulted the AI chipmaker to a $3 trillion valuation, but its shares have lost steam as short bets against the company pile up.

Investors will be eyeing the results of the Fed's policy meeting next week. While the market expects no rate change announcements after the June huddle, the release of the "dot plot" will indicate how many rate cuts central bankers predict will come in the months and years ahead.

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Stocks end the week up but wobble after May jobs report

Fri, June 7, 2024 at 4:05 p.m. EDT, Hamza Shaban

The pessimism that set in after a stronger-than-expected jobs report diminished hopes of a coming rate cut wasn't enough to sink stocks for the week.

All three major indexes notched a weekly victory, even as they lost ground at the closing bell on Friday.

The S&P 500 (^GSPC) fell 0.1%, while the Dow Jones Industrial Average (^DJI) gave up 0.2%, coming off a lackluster session Thursday for the three major gauges. The tech-heavy Nasdaq Composite (^IXIC) shed about 0.2%.

Next week, investors will learn how the Fed has been interpreting this quarter's often confounding economic figures as the June policy meeting, and the central bank's interest rate outlook, take center stage.

What to expect from next week's Fed meeting

Fri, June 7, 2024 at 3:30 p.m. EDT, Hamza Shaban

It's a near certainty that the Federal Reserve will keep rates steady at its policy meeting next week. That's the view based on recent statements from Fed officials, analyst commentary, and market bets.

But what's far less certain is what the Fed expects to do in the remaining six months of the year.

June's policy meeting will come with a "dot plot," a summary of projections visualizing the expectations of central bankers for potential rate cuts in the months and years ahead.

"The big question is the median dot for ’24," wrote Michael Feroli, an analyst at JPMorgan, in a preview Friday of the Fed's upcoming huddle. "We think it will show two eases this year, down from three at the March meeting."

Since the last Fed policy meeting, sentiment around interest rate policy has turned more pessimistic, as subsequent inflation and employment data have shown signs of an economy that is still too hot to merit a cut in rates.

The question on many investors' minds is how many cuts Fed officials predict.

Fed Hawks are expected to forecast just one or even no cuts this year, Feroli said. Doves, meanwhile, are expected to project two.

As for the prospect of rate hikes, which some Fed officials have nodded to, Feroli doesn't see that in the cards.

Fed Chair Jerome Powell, who has been perceived as largely dovish in the face of sometimes contradictory data, is likely to stay on message, taking the bigger-picture view, Feroli said. He is expected to emphasize that inflation is coming down, however stubbornly, and that the labor market is coming into better balance against the backdrop of solid growth.

Biden's job tally has now topped 15.6 million. Voters haven't cared so far.

Fri, June 7, 2024 at 2:45 p.m. EDT, Hamza Shaban

Since Joe Biden took office, there are 15.6 million more jobs, highlighting the president's strong labor market performance.

But as Yahoo Finance's Ben Werschkul reports, it remains to be seen if voters will give him credit for it.

What voters have told pollsters again and again is that their perceptions of Biden's economic record often begin and end with inflation.

The president and his allies nonetheless responded in force Friday, with Biden saying in a statement "the great American comeback continues" and adding that unemployment has now been at or below 4% for the longest stretch in 50 years.

Friday's overall numbers saw the economy again defy worries of a slowdown and add 272,000 nonfarm payroll jobs in May, while the unemployment rate ticked up to 4% from 3.9% in April. When Biden took office in 2021 following a year of pandemic-induced job losses, about 142.9 million Americans were working. The latest Bureau of Labor Statistics data released Friday put that figure over 158.5 million.

The record so far suggests that voters are instead focused on inflation. The question for Biden and his campaign is whether any message focused on jobs can break through.

GameStop sinks 40% as 'Roaring Kitty' livestream fails to revive stock after big sale

Fri, June 7, 2024 at 2:34 p.m. EDT, Ines Ferré

GameStop (GME) sank to session lows on Friday afternoon following the conclusion of the much anticipated livestream appearance of investor Keith Gill, and after the video game retailer filed to sell up to 75 million shares and released its quarterly results earlier than anticipated.

The stock sank as low as 40% in afternoon trading. It was halted for volatility at least 17 times throughout Friday's session.

More than half a million watchers tuned in to Gill, credited with sparking the meme stock frenzy more than three years ago.

“Crazy stuff going on these days, can you believe it’s me?” said Gill, dressed in a white T-shirt, sunglasses, and a headband with bandaids on it.

Gill, also known by the online aliases ‘Roaring Kitty’ and ‘Deep F***ing Value,’ reiterated some of the same bullish points he has made in the past about GameStop.

“It becomes a bet on the management,” said Gill, referring to CEO and chairman Ryan Cohen "and his crew.”

He said, “I see enough where I believe this guy may be able to do it." Gill reiterated that his video was not financial advice. He also confirmed online screenshots of a portfolio position posted on Reddit are indeed snapshots of his account.

"The accounts showing my positions are mine. These are my positions. I'm not working with anybody else. I'm not working with hedge funds,” said Gill. "I'm not an institutional investor."

GameStop shares lost most of the gains from Thursday when the stock surged 47% after Roaring Kitty’s Youtube channel scheduled the livestream.

The stock fell more than 23% on Friday morning after the company announced the sale of up to 75 million shares and released its financial results, showing a 29% year-over-year drop in net sales for the first quarter. Wall Street was expecting the results next week.

This is the second time in less than a month that GameStop has capitalized on huge short squeezes on the heavily shorted stock. In May the company sold 45 million shares for more than $900 million following a massive stock surge sparked by the reemergence of Roaring Kitty on social media.

Short interest in GameStop currently sits at around 21% of the float.

Homebuilder stocks sink after hotter-than-expected jobs report slams rate cut hopes

Fri, June 7, 2024 at 2:05 p.m. EDT, Dani Romero

Homebuilder stocks lost steam Friday after a hotter-than-expected May jobs report dampened rate cut expectations for September.

The SPDR S&P Homebuilders ETF (XHB) sank by 1%, alongside DR Horton, Inc. (DHI), the biggest US homebuilder, which slipped by 2%. Lennar (LEN) and Toll Brothers (TOL) were down by more than 1% in afternoon trading.

The jobs print underscored the difficulty the Federal Reserve faces in determining when to lower interest rates and how quickly. The economy and labor market have largely held up while inflation remains sticky, supporting the case for holding rates higher for longer.

After Friday’s jobs report, investors were pricing in a 53% chance that the Fed will cut rates in September, down from a roughly 69% chance seen just a day prior, per the CME FedWatch Tool.

Although the Federal Reserve doesn’t directly set mortgage rates, the rates offered by lenders tend to follow the agency’s lead. As such, mortgage rates remain elevated, hovering around 7% and pushing homebuying activity to stay persistently low.

Stocks trending in afternoon trading

Fri, June 7, 2024 at 1:46 p.m. EDT, Hamza Shaban

Here are some of the stocks leading Yahoo Finance’s trending tickers page during afternoon trading on Friday.

GameStop (GME): Shares of the video game retailer and popular meme stock fell 35% in afternoon trading following the kickoff of the highly anticipated livestream from bullish retail investor Keith Gill. The stock was halted for volatility numerous times during the stream, in which Gill said he believed in the company's management.

AMC (AMC): The meme stock pullback spilled over into other names Friday, and shares of the movie theater chain dropped 15%. The stock has sunk about 12% so far this year, failing to ride the same momentum as GameStop.

Oddity Tech (ODD): The beauty and wellness company that uses AI rose more than 20% Friday following an announcement that the board of directors approved a share buyback program of a maximum of $150 million of the Company’s Class A Ordinary Shares. The company also boosted its Q2 outlook.

DocuSign (DOCU): The software company specializing in electronic agreements shed 8% after reporting second quarter billings guidance that fell below Wall Street expectations. Investors looked past the more positive updates, however, as the company beat earnings estimates and boosted its stock repurchase program by up to $1 billion of outstanding common stock.

GameStop down 35% as retail trader Keith Gill says he believes in company's management

Fri, June 7, 2024 at 1:07 p.m. EDT, Ines Ferré

GameStop (GME) stock was halted for volatility numerous times during the highly anticipated livestream of retail investor Keith Gill.

“Can I talk about GameStop? The funny thing is that I have a lot of the same feelings about everything, you know?” said Gill during the livestream, appearing in front of a Yahoo Finance screen.

"It becomes a bet on the management," said Gill. "Ryan Cohen and his crew — that's what folks should be focused on."

Cohen is the chairman and CEO of GameStop.

"I see enough where I believe this guy may be able to do it," said Gill, adding a disclaimer that his video is not financial advice.

Gill also confirmed the screenshots posted online this week of a massive position in GameStop are his own.

The stock had opened lower on Friday and was also halted for volatility earlier in the session after GameStop reported quarterly results that missed analyst estimates and announced a stock sale.

The stock was down 35% as of 1 p.m. Eastern Time.

Stocks turn green in afternoon trading, Keith Gill kicks off livestream

Fri, June 7, 2024 at 12:39 p.m. EDT, Hamza Shaban

All three indexes were up Friday afternoon, recovering from earlier losses after a crucial jobs report came in hotter than expected.

Investors were also greeted with the reappearance of bullish retail investor Keith Gill, who began a YouTube livestream in the afternoon session. The stream marked his first live appearance on the channel since the investor helped ignite the meme stock rally in 2021 via his bullish videos and posts about the video game retailer GameStop (GME).

The S&P 500 (^GSPC) rose 0.2%, while the Dow Jones Industrial Average (^DJI) gained 0.1%, coming off a lackluster session Thursday for the three major gauges. The tech-heavy Nasdaq Composite (^IXIC) also rose 0.1%.

GameStop investors brace for Roaring Kitty livestream

Fri, June 7, 2024 at 11:45 a.m. EDT, Hamza Shaban

GameStop shares are down more than 18% Friday just minutes before a highly anticipated livestream from "Roaring Kitty," an alias used by bullish retail investor Keith Gill.

Gill's YouTube account is scheduled to broadcast a livestream at noon ET following an announcement from the video game retailer showing quarterly results that missed analyst estimates and news of a stock sale.

As Yahoo Finance's Ines Ferré reports, GameStop filed to sell up to 75 million additional shares on the heels of last month's sale of 45 million shares, bringing in about $930 million in proceeds.

The announcements followed the stock's 47% surge in the prior session after "Roaring Kitty" scheduled his YouTube live stream. Friday's event will mark the first live appearance on the channel since the investor helped ignite the meme stock rally in 2021 through his bullish videos and posts about the video game retailer.

Gill's actions and pronouncements could serve as another catalyst for the stock and other names in the meme stock basket.

Earlier this week, an account believed to be associated with Gill revealed a $175 million bet on GameStop. Shares surged following that post too.

The jobs report is a 'Rorschach blot' for mixed interpretations

Fri, June 7, 2024 at 11:09 a.m. EDT, Hamza Shaban

The US labor market added more jobs than expected in May, but the report also contained data for both optimists and pessimists, in what Bill Adams, chief economist for Comerica Bank, called a Rorschach blot.

Data from the Bureau of Labor Statistics released Friday showed the labor market added 272,000 nonfarm payroll jobs in May, significantly more than the 180,000 that was expected.

But the unemployment rate rose to 4% from the prior month's 3.9%.

"Optimists about the growth outlook will see solid payrolls growth as a sign the expansion continues unabated," said Adams in a note on Friday. "Pessimists will focus on the unemployment rate’s uptick to the highest since early 2022, the increase in part-time employment, and the dip in temporary employment, which is often a leading indicator of broader job market weakness."

How market observers interpret how the latest jobs figures influences interest rate outlooks.

"Most Fed policymakers will see May’s strong payrolls growth and uptick in earnings as a sign that immediate rate cuts are not necessary," Adams noted. But the Fed will also see the increase in unemployment over the past year as a sign that inflation is on course to moderate further, he added.

"If core inflation continues to slow in the next few months, the Fed will likely feel comfortable beginning to reduce interest rates with a quarter percentage point rate cut at their September meeting."

Stocks trending in morning trading

Fri, June 7, 2024 at 10:15 a.m. EDT, Hamza Shaban

Here are some of the stocks leading Yahoo Finance’s trending tickers page during morning trading on Friday.

GameStop (GME): Shares of the video game retailer and meme stock extraordinaire fell 19% in morning Friday after it reported quarterly results that missed analyst estimates and announced a stock sale just hours before a highly anticipated livestream from "Roaring Kitty," an alias used in the past by bullish retail investor Keith Gill.

DocuSign (DOCU): The software company specializing in electronic agreements shed 8% after reporting second quarter billings guidance that fell below Wall Street expectations. Investors looked past the more positive updates, however, as the company beat earnings estimates and boosted its stock repurchase program by up to $1 billion of outstanding common stock.

Lyft (LYFT): Shares of the ride-hailing company rose 3% Friday morning following the company's decision to revise its growth forecasts upward and reaffirm its guidance for the second quarter. Lyft now anticipates around 15% growth in bookings over the next three years.

Vail Resorts (MTN) The mountain resort dropped 13% after the company missed earnings expectations and cut its full-year EBITDA outlook. CEO Kirsten Lynch pointed to lift ticket visitation not rebounding in the spring season as a reason for the lowered guidance.

Stocks slide as rate cut expectations fall

Fri, June 7, 2024 at 9:33 a.m. EDT, Hamza Shaban

The May jobs report, which came in hotter than expected, put another dent in the narrative that the Federal Reserve will soon cut interest rates. The latest reading offered another signal that defied previous signs of a slowdown in the economy.

The S&P 500 (^GSPC) fell 0.3%, while the Dow Jones Industrial Average (^DJI) shed 0.2%, coming off a lackluster session Thursday for the three major gauges. The tech-heavy Nasdaq Composite (^IXIC) dropped around 0.4%.

Eyes on Robinhood

Fri, June 7, 2024 at 7:32 a.m. EDT, Brian Sozzi

Robinhood (HOOD) remains on several impressive streaks.

For one, the stock price: It's up 27% in the last 30 days. And two, the flow of news — from debuting a new credit card and reporting a solid first quarter to spending $200 million yesterday to buy crypto exchange Bitstamp.

"This is a strategic move by HOOD to expand its crypto business, and we believe validates our thesis that HOOD is a great way to seek crypto equity exposure at the commencement of an exciting new crypto cycle," said Bernstein's Gautam Chhugani this morning.

I grabbed coffee with Robinhood's co-founder and CEO Vlad Tenev yesterday afternoon post Bitstamp deal. The guy has his swagger back, but you can tell he has gained a whole new level of experience having gone through what he did several years back — from layoffs to testifying on the GameStop (GME) insanity. Keep an eye on what the company does nevlad tenevxt in wealth management.

Our last chat below.

Reminder as you read the jobs report

Fri, June 7, 2024 at 7:16 a.m. EDT, Brian Sozzi

The market still wants to believe in rate cuts for 2024.

So keep that in mind as you navigate today's jobs report and plot through how it may influence Fed policy.

Good point by Deutsche Bank's Jim Reid this morning after the ECB's rate cut yesterday:

"And even though the tone was a bit hawkish in several respects, it now makes them the fourth G10 central bank to have cut rates, after Canada, Sweden and Switzerland. In turn, the move has cemented the idea that the global monetary policy cycle is moving towards an easing mode, with investors expecting further cuts on the horizon. So it marks a big shift from much of the last couple of years, when central banks were rapidly hiking rates to try to bring down inflation."