Scary headlines about job growth revisions were offset by positive earnings results and dovish FOMC Minutes, giving bulls the confidence to keep on buying. Earnings continue to drive individual stock moves as summer trading volumes slump. Let’s see what you missed. 👀

Today's issue covers a recap of the Fed Minutes and jobs revisions, a retailer roundup of Target, TJX, and Macy’s, and why Zoom is booming and Snowflake is melting. 📰

Here’s the S&P 500 heatmap. 10 of 11 sectors closed green, with consumer discretionary (+1.26%) leading and real estate (-0.16%) lagging.

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $ZUO, $EAST, $PRCT, $GDS, $NEON 📉 $COTY, $AGIO, $WBA, $AIEV, $BA*

*If you’re a business and want to access this data via our API, email us.

Given the recent labor market and inflation data, most market participants believe the Fed should have cut rates in July. And July’s FOMC Minutes showed they might not have been far off base. 🤔

“The vast majority” of participants at the July 30-31 meeting “observed that, if the data continued to come in about as expected, it would likely be appropriate to ease policy at the next meeting.” The question now is whether the Fed will cut 25 or 50 bps.

Several members already believe a July cut would’ve been appropriate, so some analysts believe a 50 bp cut could happen if the data continues to come in soft between now and then. 🔮

Today’s nonfarm payroll growth helped that case, with the Bureau of Labor Statistics saying job growth was nearly 30% below initially reported (818,000 fewer jobs) than the 2.90 million from April 2023 through March 2024.

These revisions imply monthly job gains of 174,000 instead of 242,000, indicating a strong (but not as strong as initially indicated) labor market.

At the sector level, the biggest downward revision came in professional and business services (-358,000). Other areas revised lower included leisure and hospitality (-150,000), manufacturing (-115,000), and trade, transportation, and utilities (-104,000). 📊

With that said, the labor market remains strong given the recent uptick in unemployment rate has been driven by people returning to the workforce rather than a surge in layoffs or other separations.

The Fed had been looking for slow growth, and that’s what it’s got. Eyes are on Jackson Hole tomorrow to see if Jerome Powell tips his hand any further about the upcoming September meeting. 👀

Pandemic darling Zoom has struggled to gain traction, but some compelling earnings data has shares rebounding from all-time lows. 🧑‍💻

Management said the company “saw strength” in large accounts and “resilience” in its online business, helping it provide guidance ahead of Wall Street expectations. Additionally, its adjusted earnings per share of $1.39 and revenue of $1.16 billion exceeded expectations.

The results were slightly better than anticipated, but investors are happy to see earnings accelerating amid tepid revenue growth. Stocktwits sentiment has pushed back into ‘bullish’ territory as investors and traders look to see if it can maintain any upside momentum. 🐂

Meanwhile, software company Snowflake beat expectations for its latest quarter and raised its guidance, but a potential issue with the company’s outlook gave the bears an edge after hours. ⚠️

The company’s full-year outlook for $3.356 billion in product revenue implies significant deceleration compared to its first-half product growth. This comes despite CEO Sridhar Ramaswamy saying, “The quarter was hallmarked by innovation and product delivery and great traction in the early stages of our new AI products.”

Today’s news did not help shares rebound from all-time lows or convince the Stocktwits community that a turnaround is ahead. Stocktwits sentiment remains in ‘neutral’ territory as investors debate the results. 🐻

Zoom has reached a $150 million settlement with investors to settle a class action lawsuit over privacy concerns.

Back in 2020, Zoom was accused of hiding problems with its software encryption, vulnerability to hackers, and sharing personal information with third parties. Much news has been reported on significant flaws in Zoom's data privacy and security measures. Following this, $ZM significantly fell, and Zoom faced a lawsuit from investors.

Now Zoom decided to pay the affected shareholders to avoid further litigation.

Several retailers reported today; let’s recap. 👇

Big-box retailer Target topped expectations, reporting earnings per share of $2.57 vs. $2.18 and revenues of $25.45 billion vs. $25.21 billion.

Management now expects comparable sales for the full year to range from flat to up 2%, saying the lower half of that range is most likely. However, it raised full-year profit guidance from $8.60-$9.60 to $9.00-$9.70. 🔺

Digital sales drove most of the positive sales gains, rising 8.70% as more customers used same-day services like curbside pickup and home delivery. Comparable store sales were up just 0.70%.

The company continues to manage in an uncertain and volatile consumer environment, and that’s enough for investors who had low expectations going in. As a result, Stocktwits sentiment pushed to one-year highs in ‘extremely bullish’ territory alongside today’s 11% surge, suggesting the community is looking for further upside. 🤑

Meanwhile, discount retailer TJX Companies rose 6% to new all-time highs as consumers continued to look for deals in the discretionary goods space. 🛒

The company raised its full-year guidance after posting comparable store sales growth of 4%, “entirely driven by an increase in customer transactions.”

U.S. strength drove the results, with Europe’s performance disappointing management. However, the company is still investing in international growth by taking a 35% ownership stake in Dubai-based retailer Brands for Less. 🌍

Stocktwits sentiment remains in ‘extremely bullish’ territory as investors expect consumers’ focus on discounts to continue in an uncertain economy.

Lastly, we should mention department store giant Macy’s, which cut its sales forecast once again. With a buyout off the table, management’s main job is ‘right-sizing’ its business by closing 150 namesake stores and focusing on brands like Bluemercury that are growing well. 🏬

Sales remain the core issue for Macy’s, with CEO Tony Spring saying that customers aren’t spending as freely across all of Macy’s brands. That includes higher-end Bloomingdale’s, which had previously held up better than its low-to-mid-income store.

Shares fell 13% on the day, but Stocktwits sentiment surprisingly sits in ‘extremely bullish’ territory as the community debates the bull case. 🤔

Economic data: Chicago Fed Activity Index (8:30 am ET), Initial/Continuing Jobless Claims (8:30 am ET), S&P Global Composite PMI (9:45 am ET), Existing Home Sales (10:00 am ET), and Kansas Fed Composite Index (11:00 am ET).

Pre-Market Earnings: Baidu ($BIDU), EHang Holdings ($EH), Bilibili ($BILI), iQYI ($IQ), Weibo ($WB), Canadian Solar ($CSIQ), Peloton Interactive ($PTON), BJ’s Wholesale Club ($BJ), and Advanced Auto Parts ($AAP). 🛏️

After-Hour Earnings: Cava ($CAVA), Workday ($WDAY), Intuit ($INTU), Bill Holdings (BILL), Ross Stores ($ROST), and Red Robin Gourmet Burger ($RRGB). 🎧

P.S. You can listen to all of these earnings calls and more straight from the Stocktwits app or website. You’ll find them on the calendar page and individual symbol pages once they’re set to begin! We’ll see you there. 👍

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📺 Chick-Fil-A hatches plans for streaming service as reality TV comes home To roost

🏦 Oaktree nears deal for majority stake in two B Riley units, Bloomberg reports

🚫 US judge strikes down Biden administration ban on worker ‘noncompete’ agreements

❌ Ford scraps all-electric SUV plan, saying drivers want hybrids

👨‍💼 More than 28% of Americans are searching for new jobs — the highest rate in a decade

🤩 Chart Art: The best trade ideas and analysis from the Stocktwits community

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