More than 50 bodies were found improperly stored and decomposing Thursday at a Chicago funeral home run by a couple who previously operated a crematory that was similarly shut down because of mishandled remains, authorities said.
Illinois state officials, meanwhile, suspended the license of one of the funeral home's directors, alleging bodies were being kept in an unrefrigerated area in “deplorable conditions."
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Chicago police investigate South Chicago Chapel after authorities discovered dozens of decomposing bodies in the funeral home's basement on Thursday, Aug. 6, 2026. (Tyler Pasciak LaRiviere /Chicago Sun-Times via AP)
Chicago police investigate South Chicago Chapel after authorities discovered dozens of decomposing bodies in the funeral home's basement on Thursday, Aug. 6, 2026. (Tyler Pasciak /Chicago Sun-Times via AP)
A row of hearses sit parked outside the South Chicago Chapel while Chicago police investigate after authorities discovered dozens of decomposing bodies in the funeral home's basement on Thursday, Aug. 6, 2026. (Tyler Pasciak LaRiviere/Chicago Sun-Times via AP)
Chicago police investigate South Chicago Chapel after authorities discovered dozens of decomposing bodies in the funeral home's basement on Thursday, Aug. 6, 2026. (Tyler Pasciak LaRiviere/Chicago Sun-Times via AP)
Chicago police investigate South Chicago Chapel after authorities discovered dozens of decomposing bodies in the funeral home's basement on Thursday, Aug. 6, 2026. (Tyler Pasciak LaRiviere/Chicago Sun-Times via AP)
The Cook County Medical Examiner's Office said it was notified by state and local officials that bodies were being stored improperly at South Chicago Chapel, and investigators and forensic pathologists were dispatched. The remains were in various states of decomposition, officials said.
“Staff is assessing the conditions of the remains, searching for documentation regarding identification of the decedents as well as death certificates. This process could take several days to ensure proper disposition,” the medical examiner's office said in a statement.
Police initially said fire department officials declared the scene a hazardous materials incident, but the fire department denied that on Friday.
No arrests have been announced, but city police said detectives are investigating.
Neighbors told local media outlets that there was a horrible smell coming from the funeral home area.
Messages for the funeral home were left by phone and through its website Friday.
State business records show that funeral director Johanna Morgan incorporated South Chicago Chapel Inc. in 2022 and her funeral director's license was temporarily suspended on Wednesday.
The state Department of Financial and Professional Regulation said the license suspension was due to “a finding that Respondent’s continued practice is a danger to the public safety, interest and welfare due to Respondent allowing multiple decedents to be kept in an unrefrigerated area with deplorable conditions including rodent infestation, causing decomposition and maggot infestation of the bodies.”
The state business records also list Clark X. Morgan as the funeral home's president. The Department of Financial and Professional Regulation said it revoked the funeral director license of a Clark X. Morgan and fined him $10,000 in 2024 for practicing with an expired license and “unprofessional conduct” that it did not specify.
State Comptroller Susana Mendoza said Friday that Johanna and Clark Morgan previously ran a crematory in Chicago Heights, south of Chicago, which had its license revoked last year after authorities discovered improperly stored bodies and hundreds of cremated remains that had never been returned to their families.
Mendoza said many of the bodies at the crematory were stacked on top of each other and not refrigerated.
“Horrified. Again,” Mendoza said in a statement. “The discovery of decomposing remains waiting to be laid to rest this week at a South Side funeral home is heartbreaking and an abomination. These are people – someone’s mother, father, sister, brother, child or friend, and they deserve better.”
Both Johanna and Clark Morgan are listed in Cook County court records as defendants in connection with lawsuits involving Heights Crematory in Chicago Heights, south of Chicago.
Public records show Johanna and Clark X. Morgan live at the same address in the Chicago suburb of Evergreen Park, and an obituary for Johanna Morgan's mother lists her husband as Clark. Phone messages were left Friday for numbers listed in public records for Johanna and Clark Morgan.
South Chicago Chapel's website says the funeral home is “dedicated to providing compassionate care and personalized services to support families during life’s most challenging moments.”
“Our experienced and caring team is here to guide you every step of the way, ensuring your loved one’s life is honored with dignity, respect, and heartfelt attention to detail,” the site says. “We believe that every life is unique, and we work closely with you to create meaningful tributes that reflect their story and legacy.”
The case is similar to others involving the mishandling of human remains in parts of the U.S.
Last month, police arrested two men in Pueblo, Colorado, including a former county coroner, for allegedly mishandling at least two dozen decomposing bodies and other remains found behind a hidden door in a funeral home.
In 2024 in south Georgia, authorities found 18 bodies in various stages of decomposition at a funeral home in Douglas and arrested the owner.
Another Colorado case included the discovery of nearly 200 decomposing bodies kept at room temperature in a building in Penrose in 2023, which also led to arrests and prison sentences.
Also in 2023, an investigation in southern Indiana found 31 decomposing bodies at a funeral home in Jeffersonville, leading to the arrest and guilty plea of its owner.
Chicago police investigate South Chicago Chapel after authorities discovered dozens of decomposing bodies in the funeral home's basement on Thursday, Aug. 6, 2026. (Tyler Pasciak LaRiviere /Chicago Sun-Times via AP)
Chicago police investigate South Chicago Chapel after authorities discovered dozens of decomposing bodies in the funeral home's basement on Thursday, Aug. 6, 2026. (Tyler Pasciak /Chicago Sun-Times via AP)
A row of hearses sit parked outside the South Chicago Chapel while Chicago police investigate after authorities discovered dozens of decomposing bodies in the funeral home's basement on Thursday, Aug. 6, 2026. (Tyler Pasciak LaRiviere/Chicago Sun-Times via AP)
Chicago police investigate South Chicago Chapel after authorities discovered dozens of decomposing bodies in the funeral home's basement on Thursday, Aug. 6, 2026. (Tyler Pasciak LaRiviere/Chicago Sun-Times via AP)
Chicago police investigate South Chicago Chapel after authorities discovered dozens of decomposing bodies in the funeral home's basement on Thursday, Aug. 6, 2026. (Tyler Pasciak LaRiviere/Chicago Sun-Times via AP)
NEW YORK (AP) — Stocks rose on Wall Street Friday and Treasury yields fell after the government reported that employers unexpectedly cut 23,000 jobs last month.
The S&P 500 rose 0.6% and is hovering around the record it set on Tuesday. The Dow Jones Industrial Average rose 138 points, or 0.3%, as of 11:21 a.m. Eastern time. The Nasdaq composite rose 1.1%. Every major index is on track for weekly gains.
Technology stocks, with their big market values, did much of the heavy lifting for the broader market. They are often the heaviest weights determining the market’s direction. Nvidia jumped 2.3% and Broadcom rose 1%.
The bond market reacted more strongly to the weaker signal on the job market, which can be seen as allowing the Federal Reserve more time before raising interest rates to fight inflation.
The yield on the 10-year Treasury fell to 4.65% from 4.67% just prior to the jobs update. It was as low as 4.60% before recovering a bit.
The yield on the two-year Treasury, which more closely tracks expectations for Fed action on interest rates, fell to 4.20% from 4.22% prior to the report's release. It was as low as 4.15% before edging back up.
Overall, the report paints a dimmer picture of the jobs market, which has been one of the brighter areas of the economy amid rising inflation and worries about household spending. It included a revision to the figures for June and May that involved slashing a combined 103,000 jobs from payrolls for those months.
The Fed has been holding interest rates steady amid worries about hotter inflation, fueled by a rise in oil prices because of the U.S. war with Iran. Wall Street expects at least one rate increase by the end of the year, with forecasts shifting for the next meeting. Expectations for a rate cut in September are down to 42%, from 55% on Thursday and from 67% a week ago, according to CME FedWatch.
A weakening jobs market could make matters more complicated for the Fed, which has to balance supporting job growth with fighting inflation. Raising interest rates can help tame inflation by slowing economic growth. A weaker jobs market, though, could become even shakier under higher interest rates as businesses find it more difficult to expand under increased borrowing rates.
Businesses, and Wall Street, prefer lower interest rates because it can help boost investments. That might bolster a weakened jobs market, but it could worsen already stubborn inflation.
Wall Street will get several important inflation updates next week.
“Today’s weak payrolls print may ease the pressure on the Fed to raise rates at its September meeting, but next week’s inflation data will still likely be the deciding factor,” said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management, in a research note.
The jobs report caps a week dominated mostly by corporate earnings and concerns about the ongoing U.S. war with Iran.
Corporate earnings for the second quarter are on track for the strongest growth since 2021. Nearly 90% of companies in the S&P 500 have reported their results and analysts expect profit growth of 50% overall. That has helped allay some concerns on Wall Street about whether big gains for stocks in 2026 are justified. Strong profits help support those gains in stock values.
It was a light day for earnings as companies near the close of the latest round of reports.
Airbnb jumped 15.4% following the vacation-rental company's report late Thursday that showed stronger profit and revenue for its most recent quarter than analysts expected.
Oil prices gained ground. The price of Brent crude, the international standard, rose 1.2% to $83.47 a barrel.
Rising oil prices have been behind hotter inflation. Prices were as high as $113 per barrel at one point during the now five-month U.S. war with Iran. That raised prices for gasoline and shipping for a wide range of products. The U.S. and Iran have both said they are working on deals that could reopen the Strait of Hormuz, where a fifth of the world's oil and natural gas once passed through.
Markets in Europe gained ground and markets in Asia were mixed.
Associated Press business writer Elaine Kurtenbach contributed to this report.
Specialist Michael Pistillo works on the floor of the New York Stock Exchange, Wednesday, Aug.. 5, 2026, in New York. (AP Photo/Yuki Iwamura)
People walk past the Nasdaq MarketSite, Thursday, Aug. 6, 2026, in New York. (AP Photo/Yuki Iwamura)
People walk past the Nasdaq MarketSite, Thursday, Aug. 6, 2026, in New York. (AP Photo/Yuki Iwamura)
A currency trader watches monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Friday, Aug. 7, 2026. (AP Photo/Ahn Young-joon)
People walk past an electronic board showing Japan's Nikkei index at a securities firm Thursday, Aug. 6, 2026, in Tokyo. (AP Photo/Eugene Hoshiko)
Currency traders watch monitors at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Friday, Aug. 7, 2026. (AP Photo/Ahn Young-joon)