U.S. stocks remained mostly lower Tuesday after data showed that job openings in the U.S. fell in October to a 28-month low.
How stocks are trading
-
The Dow Jones Industrial Average
DJIA
fell 142 points, or 0.2%, to 36,063 -
The S&P 500
SPX
dipped 3 points, or 0.1%, to 4,567 -
The Nasdaq Composite
COMP
rose 60 points, or 0.4%, to 14,246
What’s driving markets
Job openings in the U.S. fell in October to a 28-month low of 8.7 million, adding further evidence that the labor market is cooling off in response to higher interest rates. Job listings declined from a revised 9.4 million in September, the Labor Department said Tuesday.
Meanwhile, an ISM barometer of business conditions at service companies such as restaurants and hotels rebounded to 52.7% in November from a five-month low of 51.8% in the prior month. Economists polled by The Wall Street Journal had expected the index to rise to 52.4%.
Such data will be followed on Wednesday by the ADP survey of private-sector hiring, the weekly unemployment claims data on Thursday and the nonfarm-payrolls report on Friday.
This week’s economic numbers come after traders flexed their muscles in a strong November rally. The S&P 500 ended Friday at its highest since March 2022, bolstered by falling bond yields amid hopes easing inflation meant the Federal Reserve was finished raising interest rates.
The cautious mood is lingering Tuesday morning, even as benchmark Treasury yields
BX:TMUBMUSD10Y
dipped back towards three-month lows, as a poor performance out of Asian markets weighed on sentiment.
Hong Kong’s Hang Seng index
HK:HSI
fell 1.9% and the Shanghai Composite
CN:SHCOMP
lost 1.7%, both to their lowest in more than 12 months. Moody’s downgraded its outlook on China’s debt and highlighted the difficulties facing the world’s second-biggest economy.
The Fed will complete its next policy meeting on Dec. 13. It is expected to leave interest rates unchanged at a range of 5.25% to 5.50%.
Other U.S. economic updates include the S&P services purchasing managers’ index for November, which ticked up to 50.8% from 50.6% a month earlier.
Companies releasing results on Tuesday include NIO
NIO,
AutoZone
AZO,
and J.M. Smucker
SJM,
before the opening bell rings on Wall Street, followed after the close by Toll Brothers
TOL,
Asana
ASAN,
and Box
BOX,
Companies in focus
-
Designer Brands Inc.’s
DBI,
-31.85%
stock is down 33% following weaker-than-expected guidance from the parent company of brands including Keds and Lucky Brand. -
J.M. Smucker Co.
SJM,
+5.05%
shares were up 3.6% Tuesday morning after the consumer-staples company beat third-quarter profit estimates, though sales declined and the company lowered guidance. -
AutoZone Inc.
AZO,
+0.27%
shares were up 0.5% Tuesday after the auto-parts retailer’s earnings beat earnings-per-share expectations.
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