Weak Jobs Data Pushes Technology Stocks and Entrepreneur Index™ Up Sharply
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Bad news on the economy was good news for the stock market today.
The non-farm U.S. economy added only 75,000 jobs last month -- less than half the 180,000 expected, according to the Department of Labor. Investors, however, expect the sharp slowdown in the labor market will prompt the Federal Reserve to cut interest rates sooner rather than later. Earlier this year, weak economic data motivated investors to sell stocks, but the prospect of a more accommodative Fed has them buying stocks now.
The Dow and S&P 500 indexes were up 1.02 percent and 1.05 percent respectively while the Nasdaq Composite gained 1.66 percent. The Entrepreneur Index™ closed the day up 1.52 percent.
The technology sector was the biggest beneficiary of the Fed-induced optimism with all thirteen tech stocks on the Entrepreneur Index™ posting gains today. Twitter (3.66 percent) had the biggest jump but Alphabet Inc. (2.08 percent), Facebook (2.98 percent) and Amazon.com (2.83 percent) were also up sharply.
Saudi Arabia said that oil cartel OPEC was likely to extend production cuts made earlier this year, sending the price of oil up 2.8 percent today. Shares in oil and gas producer Hess Corp. were up 1.86 percent. The stock fell fifteen percent since late May as the price of oil retreated, but it has risen in the last two days.
Chipotle Mexican Grill was up 2.56 percent after a Baird analyst said the stock was attractive on both a near and long-term horizon. After a torrid start to the year, the shares fell more than ten percent before gaining eleven percent in the last four days. The stock is up 64.4 percent this year.
Medical products maker Boston Scientific Corp. also got a thumbs up from Wall Street. BMO Capital Markets added the stock to its Top Picks list based on the company's rich pipeline of products, sending the stock up 1.83 percent to a 52-week high. The shares have been under a cloud for much of the year because of concerns about litigation relating to the company's surgical mesh products. The stock, however, is up nearly twenty percent since late April.
Losses on the index today were few and far between. Only six stocks out of sixty were down. REIT Macerich Company had the biggest decline, falling 1.34 percent. Focused on malls and regional shopping centers, Macerich has been the most volatile REIT on the index this year. The shares are down 18.1 percent so far.
Tesla fell 0.57 percent today after a three-day run that pushed shares up by more than fifteen percent. Other losses on the index today included Alexion Pharmaceuticals (0.35 percent), and Apartment Investment and Management Co. (-0.7 percent).
The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.