Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Hewlett-Packard Stock Surges as the Dow Drops

Following some mixed economic reports, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is flat as of 1:15 p.m. EDT, while the S&P 500 (SNPINDEX: ^GSPC  ) is down about a point to 1,706. Hewlett-Packard (NYSE: HPQ  ) is surging today, up nearly 4%.

There were three U.S. economic releases today.





Nonfarm payrolls




Unemployment rate




Personal income




Consumer spending




PCE price index




Core PCE price index




Factory orders




The two to pay attention to are the employment report and the personal-consumption expenditures price index. The government revised jobs growth for May and June downward, now saying the economy added 26,000 fewer jobs over those two months than previously estimated. Nonfarm payrolls grew by just 162,000 in July, falling short of June's 188,000-job growth and analyst expectations of 180,000.

US Change in Nonfarm Payrolls Chart

US Change in Nonfarm Payrolls data by YCharts.

The lackluster growth was still enough to bring the unemployment rate down to a five-year low of 7.4%.

US Unemployment Rate Chart

US Unemployment Rate data by YCharts.

The drop stemmed from jobs growth and a drop in the participation rate, which measures the number of workers employed or looking for jobs. This brings the economy closer to the Fed's target of 6.5% unemployment. The Fed has said it could begin tapering asset purchases as soon as unemployment falls to 7%.

The other metrics the Federal Reserve is watching are current inflation and forecast inflation. While inflation expectations have risen slightly to 2.25%, inflation as measured by the Personal Consumption Expenditure price index, the Federal Reserve's favored measure, remains low.

US PCE Inflation Rate Chart

US PCE Inflation Rate data by YCharts.

Today's report showed that the PCE price index rose 0.4% in June, while the Core PCE price index rose 0.2%. Year over year, the PCE price index is up just 1%, indicating that inflation is slow and well below the Fed's target of 2%.

Today's Dow leader is Hewlett-Packard, up 3.%. The stock hit an intraday 52-week high today of $27.78. It's unclear why the stock is surging; speculation ranges from investors dumping Dell in favor of HP to an activist investor taking a stake. The stock has been on a tear, up 92% since the start of the year as Meg Whitman's turnaround slowly takes effect. While the stock has certainly turned around, it remains to be seen whether the business will do the same.

Another tech stock that has rocketed this year caught the eye of the Motley Fool's Chief technology officer. This incredible tech stock is growing twice as fast as Google and Facebook, and more than three times as fast as and Apple. Watch our jaw-dropping investor alert video today to find out why The Motley Fool's chief technology officer is putting $117,238 of his own money on the table and why he's so confident this will be a huge winner in 2013 and beyond. Just click here to watch!

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2576522, ~/Articles/ArticleHandler.aspx, 9/27/2016 8:39:45 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 11 hours ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 4:35 PM
^DJI $18094.83 Down -166.62 -0.91%
^GSPC $2146.10 Down -18.59 -0.86%
S&P 500 INDEX CAPS Rating: No stars
HPQ $15.02 Down -0.07 -0.46%
HP CAPS Rating: ***