Wall Street Sees Unexpected Surge Despite Contraction in Employment

Wall Street's major market averages ended higher on Friday after July's nonfarm payrolls surprised to the downside, showing an unexpected contraction in employment. The blue-chip Dow (DJI) closed +0.2%, while the benchmark S&P 500 (SP500) added +0.6%. This move came as a surprise, given that economists had predicted growth.

Despite this contraction, investors seem to be optimistic about the future. As Max Gottlich notes in his article on Seeking Alpha, there are several key things to watch out for on Monday. First, the S&P 500 (SP500) will likely be closely watched as it tries to continue its upward trend. Second, Target Corporation (TGT), Apple Inc. (AAPL), and International Business Machines Corporation (IBM) will be under scrutiny as they report their quarterly earnings.

These companies have been major contributors to the market's growth in recent months, and any miss on their earnings reports could send shockwaves through the market. Additionally, investors will be keeping an eye on the Dow Jones Industrial Average Index (DJI), which has been struggling to break above its 50-day moving average.