Markets Up for the Week (So Far) on Inflation and Jobs

Market Overview - Stock markets finished higher with the Dow rising by 235 points (+0.58%), S&P 500 up by 41 points (+0.75%), Nasdaq increasing by 174 points (+1.00%), and Russell 2000 gaining 25 points (+1.22%) [1] Federal Reserve Insights - The Federal Reserve is expected to lower interest rates, likely by 25 basis points, as inflation reports did not indicate any major surprises [1][3] - Despite high interest rates (5.25-5.50%), there are concerns about potential erosion in the job market, although weekly jobless claims remained stable at 230K [2][3] Employment Data - Non-farm payrolls and ADP private-sector payrolls have shown a decline in job creation, with non-farm jobs averaging +116K per month over the last three months, down from +211K previously, and ADP averaging +122K, down from +188K [2] Earnings Reports - Adobe Systems (ADBE) reported fiscal Q3 earnings of $4.65 per share, exceeding the Zacks consensus of $4.53, with revenues of $5.41 billion, slightly above expectations [4] - Adobe's Digital Media group saw an 11% year-over-year growth to $4 billion, but the revenue guidance was below current expectations, leading to a 9.3% drop in shares [4] - RH (formerly Restoration Hardware) reported Q2 earnings of $1.45 per share, missing the consensus of $1.53, but revenues of $830 million exceeded expectations [5] - RH experienced a strong demand increase, with growth of 10% in July and 12% in August, and is expected to see demand between 12-14% in Q3 [5]