Wall Street closed slightly lower Thursday (Aug 6) as a sharp oil rally and rising Treasury yields weighed on the tape. The Dow slipped from its record while the S&P 500 and Nasdaq edged down.
US futures are flat this morning ahead of one big data print tonight. But the loudest story came from last night's wave of software earnings.
The results split sharply. Cloudflare and Twilio soared double digits on strong guidance, while The Trade Desk cratered more than 20% after weak guidance and a management shake-up. Tonight these names trade again in the regular session, right as the July US jobs report lands.
Mixed: EPS $0.09 actually beat, but revenue $1.44B missed est $1.51B. Full-year outlook maintained
Tonight's Catalysts
Cloudflare and Twilio, the winning face of software
Cloudflare (NET) leapt about 17% to a record after solid full-year and current-quarter guidance, signaling demand for its security and AI products stays strong. Twilio (TWLO) followed up roughly 16%, lifted by a revenue beat and voice-AI momentum. Both prove the software theme still has clear winners.
The Trade Desk craters, ad-tech wobbles
On the other side, The Trade Desk (TTD) sank 22% to 26% after hours. Next-quarter revenue guidance came in around $650M, well below the ~$751M hoped for, alongside an EPS miss and a simultaneous CFO and CMO reshuffle. A sign that digital-ad spending and ad-tech growth may be cooling.
Jobs report sets the tape tonight
The July US nonfarm payrolls report lands before the US market open, with consensus near 83,000 jobs added and a 4.2% unemployment rate. It matters because the Fed held rates last month with three officials who actually wanted a hike. A hot print could revive hike talk, a weak one sharpens the hold-or-cut debate.
Major futures are flat this morning. The after-hours moves above can still shift once the US regular session opens. Beyond the watchlist, watch Airbnb's follow-through and energy stocks after crude's sharp jump yesterday.
Macro Note 📝
Oil is the key backdrop: Brent rose almost 5% to about $83 a barrel on Strait of Hormuz deal prospects, dragging Treasury yields higher. That mix of pricier oil and rising yields is what pressured the tape yesterday and could linger tonight.
Conclusion
Software night showed a market growing more selective: not every AI and software name rises together, strong guidance gets rewarded and weak guidance gets punished hard. Cloudflare and Twilio won, The Trade Desk lost badly, DraftKings was mixed.
Tonight the focus shifts to the US jobs data that could set the Fed's rate path. For anyone watching software and macro at once, it's a compelling night. What stocks are you watching tonight?
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
