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) rose 0.1%, while the Dow Jones Industrial Average (^DJI) gained 0.2%, coming off a lackluster session Thursday for the three major gauges. The tech-heavy Nasdaq Composite (^IXIC) remained in the red, hovering just below the flatline.

Investors have lifted stocks on the expectation that further data would suggest an economic cooldown. But the Labor Department report offered more evidence 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, the wait is also on for a livestream apparently promised by GameStop (GME) booster Keith Gill, aka “Roaring Kitty.” The event, scheduled for noon ET Friday, would be the first live YouTube appearance by Gill since he helped ignite the meme stock rally three years ago.

GameStop shares closed 47% higher on Thursday, but they dropped sharply after the video game retailer said it would sell up to 75 million shares and said sales declined in the first quarter.

Also on deck is the completion of Nvidia’s (NVDA) 10-for-1 stock split, 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.

Live10 updates

• Fri, June 7, 2024 at 8:05 PM GMT+2
  

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

  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.

• Fri, June 7, 2024 at 7:46 PM GMT+2
  

  Stocks trending in afternoon trading

  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 meme stock extraordinaire 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 believes in the company’s management.

  AMC (AMC): The meme stock pull back spilled over into other names Friday, as 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.

• Fri, June 7, 2024 at 7:07 PM GMT+2
  

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

  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.

• Fri, June 7, 2024 at 6:39 PM GMT+2
  

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

  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%.

• Fri, June 7, 2024 at 5:45 PM GMT+2
  

  GameStop investors brace for Roaring Kitty livestream

  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.

• Fri, June 7, 2024 at 5:09 PM GMT+2
  

  The jobs report is a ‘Rorschach blot’ for mixed interpretations

  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.”

• Fri, June 7, 2024 at 4:15 PM GMT+2
  

  Stocks trending in morning trading

  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.

• Fri, June 7, 2024 at 3:33 PM GMT+2
  

  Stocks slide as rate cut expectations fall

  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%.

• Fri, June 7, 2024 at 1:32 PM GMT+2
  

  Eyes on Robinhood

  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.

• Fri, June 7, 2024 at 1:16 PM GMT+2
  

  Reminder as you read the jobs report

  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.”

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Inflation-hit consumers are downsizing from more expensive bags of pretzels and chips.

Campbell’s Soup (CEC) surprised some on Wall Street this week when it reported volumes in its snacks division — which ranges from Snyder’s Lance pretzels to Cape Cod chips and Goldfish crackers — fell 1% in the most recent quarter.

Volumes fell 2% in the previous quarter.

“I think what you saw this quarter was a bit of normalization of this growth line [for snacks] and some increasing or growing pressure as it relates to the broader economy,” said Campbell Soup CEO Marcos Clouse counted Yahoo Finance (video above).

Clouse believes there is nothing “structurally” wrong with the company’s snack food business, which saw demand stabilize after Memorial Day.

But he acknowledges that a sticky inflationary environment is making consumers more cautious in supermarket aisles, although he stopped short of calling snacks a new “luxury.”

“If you’re a middle- or low-income family right now, you’re still dealing with high interest rates, higher rents, you’ve probably just taken a hit on your car insurance,” Clouse added.

Campbell isn’t the only one feeling pressure on snacks, once seen as immune to consumer spending cuts.

PepsiCo (PEP) recorded volumes in its Frito-Lay business in North America 2% drop in the first quarter. Owner of Slim Jim, Conagra Brands (Image: Disclosure)CAG) scored a Volume drop of 0.8% in the quarter.

“Snack categories, especially savory snacks, have seen slow readings. [sales tracker] data, as it was one of the last categories to feel [consumer] elasticities”, explained the BofA packaged food analyst Bryan Spillane in a customer note.

“As we approach summer (biggest snacking season) and promotional/merchandising activities potentially unlock incremental demand, snacking volumes may see some relief.”

The Earnings Recap

• Liquid sales: +6% year over year to $2.4 billion

• Gross Margin: 31.2% against 30.9% a year ago

• Adjusted EPS: +10% year over year to $0.75

What caught our attention the most

Wall Street weighs in

• “Better-than-expected EPS guidance incorporating Sovos and better-than-feared organic sales review should support modest outperformance for the stock, in our view.” – Stifel, Matthew Smith (Hold rating, $45 price target)

• “Core business challenges keep us on the sidelines.” – Jefferies, Rob Dickerson (Rating held, $44 price target)

The story continues

Against a mixed economic backdrop, CEOs are bracing for a contentious presidential election season that could weigh on what consumers buy, from soup to new cars. Ford (FORD) CEO Jim Farley assesses electoral risk in the latest episode of “Opening bid“podcast. Listen below.

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Brian Sozzi is the executive editor of Yahoo Finance. He is also the host of “Opening bid“podcast. Follow Sozzi on Twitter/X @BrianSozzi and so on LinkedIn. Tips on business, mergers, activist situations or anything else? Email brian.sozzi@yahoofinance.com. Are you a CEO and want to participate in Yahoo Finance Live? Email Brian Sozzi.

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David Paul Morris/Bloomberg/Getty Images

Attendees at a City Career Fair hiring event in Sacramento, California, on June 5.

CNN –

At a time when Americans and the Federal Reserve are clamoring for clear data on the state of the economy, Friday’s jobs report it was much more opaque than anyone expected.

While “it’s hard not to like a lot of jobs,” as economist Dean Baker told CNN, other content in the May jobs report adds to the pile of unwelcome economic news that includeslower GDP growth, a setback in some expenses It is increase in credit card defaults.

“The good news is that we have seen an explosion in payrolls. The bad news is rising unemployment with an acceleration in wage gains,” Diane Swonk, chief economist at KPMG, told CNN.

The unemployment rate rose from 3.9% to 4%. It is the first time in more than two years that the unemployment rate has not fallen below 4%.

The increase in unemployment can be attributed to the findings of the household survey (one of two surveys that contribute to the monthly employment report). Compared to the establishment survey that showed the robust net gain of 272,000 jobs, the household survey faltered.

Employment, as measured by responses to household surveys, fell by 408,000 in May compared to April; the number of people in the labor force fell by 250,000; the labor force participation rate fell from 62.7% to 62.5%, PNC chief economist Gus Faucher noted Friday.

“Jobs declined in the household survey, but that number is more volatile than the employer survey,” he wrote.

And although unemployment increased only slightly, by 0.1 percentage points, it reached a number that may have a psychological component.

“4% is considered a magic number – a number below which participation increases, below which we tend to see employment rates increase faster for women and minorities,” said Julia Pollak, chief economist at ZipRecruiter, to CNN earlier this week.

“Employers in a tight labor market have to do extraordinary things; they have to cast a wider net; they must actively recruit non-traditional candidates; They have to offer more attractive working conditions, more flexibility, think about installing air conditioning in trucks or offering buses to employees. So it’s kind of a magic number,” Pollak said.

Stronger-than-expected wage gains this month increased average hourly earnings to 4.1% last year, reversing a cooling trend that had been ongoing for months.

“The Fed does not directly target wages; but where the collected wages are in [service sector] areas where we saw more inflation,” Swonk said.

This is in the service sector, from personal care services, dry cleaning, home cleaning and maintenance, and vehicle maintenance, she said.

“And that’s a difficult thing for the Fed to do, because for some of the increases that we’re seeing in the services sector, we need to see offsets in the prices of goods in order to reduce inflation,” she said. “But it takes a lot of this on a consistent basis to deal with the stickier inflation we are seeing in the services sector; and, unfortunately, wages matter more in specific areas where inflation has become stickier.”

A report released Thursday showed that fewer job cuts were announced in May than in the previous month and year. That’s actually good news for Americans and those concerned about the recession, but the same report also noted that hiring ads have also dropped.

Through May of this year, U.S.-based employers announced plans to hire 50,833 workers, marking the lowest total for the first five months of the year since 2014, according to data from Challenger, Gray & Christmas released Thursday.

“Typical turnover in a healthy job market appears to be stagnant,” said Andrew Challenger, senior vice president at the outplacement and business research firm, in a statement.

Although hiring has slowed and job openings have decreased, the number of layoffs remains low. Weekly jobless claims remain below pre-pandemic levels, and Challenger’s own report shows a 20% drop in job cut announcements compared to May 2023.

“There are ample signs that the heat in the labor market of recent years has largely been wiped out,” Wells Fargo economists Sarah House and Mike Pugliese wrote Friday.

Last week’s Gross Domestic Product report, which measures all services and goods produced in the economy, showed an annualized rate of 1.3%. This is below 1.6% reflected in the first estimate.

The slower pace of economic expansion was largely due to a downward revision in consumer spending, which represents about 70% of the US economy. Spending advanced 2% in the period from January to March, compared to the initial rate of 2.5%.

The latest GDP report also showed that pre-tax corporate profits fell 0.6% in the first quarter, the first fall in a year and a sharp drop from the 4.1% rise in the previous three-month period. . Still, while most corporate earnings results this quarter were decent, companies indicated that it has become increasingly difficult for them to pass on costs to consumers.

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The Detroit Riverfront Conservancy has placed its chief financial officer on leave pending an investigation into possible financial mismanagement.

The CFO of the conservancy is William A. Smith. Conservancy President Matt Cullen said Tuesday that he will oversee the organization’s operations during the investigation.

“I recently became concerned about the accuracy of the management reports and financial statements that were provided to the Detroit Riverfront Conservancy Board,” Cullen wrote in a statement Tuesday.

Cullen said that after consulting with council leadership, they immediately ordered an independent forensic audit by PwC. They also sought advice from the law firm Honigman and its lead partner in the investigations, former U.S. Attorney Matthew Schneider. Schneider, through a spokesperson, declined to comment beyond the statement released by the conservancy on Tuesday.

“Based on Honigman’s recommendation, we have placed the Conservancy’s chief financial officer on leave,” Cullen wrote.

Cullen said he forwarded the financial records to the Michigan State Police and requested a criminal investigation.

“While this investigation is ongoing, I will step in to oversee TNC operations,” Cullen said.

Smith did not immediately return a call seeking comment.

Mark Wallace remains active in his role as president and CEO of the conservancy, according to the organization.

Lt. Mike Shaw, a spokesman for the Michigan State Police, said his agency received a request for an investigation on Tuesday.

“We’re looking at the entire conservation area,” Shaw said. “We would investigate and hand those findings over to the Public Prosecutor’s Office or the Attorney General and they would make an assessment of any type of criminality involved.”

Cullen declined further comment beyond his Tuesday statement.

“The riverfront is a beloved and important community asset, and we are committed to building a vibrant space for all metro Detroiters to enjoy,” Cullen wrote. “The project is moving forward and will be stronger because of what we learned from the Board-controlled internal review and the State Police investigation. We owe it to our donors, other key stakeholders and the entire Detroit community to be transparent and accountable about this situation – and that is exactly what we will be.”

The conservancy is a nonprofit organization that focuses on transforming Detroit’s riverfront.

cwilliams@detroitnews.com

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