All three major US stock indexes were up in late-morning trading Friday after the Bureau of Labor Statistics reported July jobs data that came in far below expectations, giving investors the impression that the Federal Reserve will not be pressed to raise interest rates.
The July employment report showed nonfarm payrolls fell by 23,000, compared with the consensus estimate from a survey compiled by Bloomberg of 80,000 jobs. June and May payrolls were revised down to increases of 20,000 and 63,000, respectively, for a net downward revision of 103,000 jobs. The unemployment rate fell to 4.1% from 4.2% in June and compared with the Bloomberg consensus of 4.2%. The labor force participation rate fell to 61.4% from 61.5% in June.
In company news, Doximity (DOCS) reported a fiscal Q1 adjusted earnings late Thursday of $0.29 per diluted share, down from $0.36 a year earlier and below the FactSet consensus analyst estimate of $0.30. Fiscal Q1 revenue was $156.6 million, up from $145.9 million and above the FactSet consensus $151.8 million. For Q2, the company expects revenue of $170 million to $171 million, below the FactSet consensus of $171.8 million. For fiscal 2027, the company expects revenue of $671 million to $681 million, up from its prior outlook of $664 million to $676 million. Analysts polled by FactSet expect $670 million. On the company's earnings call, Chief Executive Jeffrey Tangney said the revenue that Doximity's new AI search tool is generating is 10 times what it costs to run. Doximity shares were up 37% around midday.
Atlassian (TEAM) reported fiscal Q4 non-GAAP net income late Thursday of $1.87 per diluted share, up from $0.98 a year earlier and above the FactSet consensus of $1.50. Fiscal Q4 revenue was $1.77 billion, up from $1.38 billion a year ago and above the FactSet consensus of $1.66 billion. For fiscal Q1, the company expects revenue of $1.71 billion to $1.72 billion, above the FactSet consensus of $1.67 billion. For fiscal 2027, the company expects revenue growth of about 13%. Analysts expect revenue of $7.34 billion. Atlassian shares were up 30%.
The Commerce Department's Bureau of industry and Security is reviewing how Chinese AI firms acquire Nvidia (NVDA) chips by renting computing power located in other countries, Bloomberg reported Friday, citing people familiar with the matter. Nvidia shares were up 2.5%.
Amazon's (AMZN) Amazon Web Services has asked engineers to reduce internal compute usage and free up server capacity as AI demand pressures CPU and GPU infrastructure, The Information reported Friday, citing people familiar with the mater. Some AWS engineers are now waiting days, rather than hours, for CPU server capacity, as teams have been directed to decommission idle EC2 instances and reduce compute usage, the report said. Amazon shares were up 2.2%.
Price: $28.30, Change: $+7.64, Percent Change: +36.97%