Nasdaq stocks lead decliners after mixed jobs and economic data, oil surge on Iran reports
Ask NetWorth
U.S. stocks moved deeper into the red on Tuesday as investors assessed a fresh batch of economic data. Meanwhile, reports that Iran is preparing for a missile attack Lowering bond yields against Israel boosted crude oil prices (CL=F).
The Dow Jones Industrial Average (^DJI) fell roughly 0.5%, while the S&P 500 (^GSPC) fell about 1% after both major indexes hit new record highs last quarter. The tech-heavy Nasdaq Composite ( ^IXIC ) extended losses in early trade, falling about 1.7%.
As fresh jobs and manufacturing data kicked off the new quarter, investors looked for more clues about the future of the Federal Reserve’s easing cycle.
Job openings rose surprisingly in August, adding to the story that while the labor market may be cooling, it’s not slowing down fast. New data There were 8.04 million job openings at the end of August, up from 7.71 million seen in July.
Meanwhile, US manufacturing was flat in September. The Institute for Supply Management (ISM) said its manufacturing PMI was unchanged at 47.2 last month. Despite holding steady, the reading was still weak, as a PMI below 50 indicates a contraction in the manufacturing sector.
Read More: What Fed Cuts Mean for Bank Accounts, CDs, Loans and Credit Cards
The data sets up Friday’s September jobs report for investors, the most closely watched economic data in a week. Investors are looking for confirmation that the US economy is cooling rather than collapsing.
Meanwhile, a dockworkers’ strike began on the East and Gulf coasts, threatening to halt the flow of half of America’s ocean-going ships. The disruption caused by a large-scale strike could cost the economy billions of dollars a day, fuel inflation, put jobs at risk and reverberate through American politics.
live4 updates
Job opportunities increase in August, rate decreases
Job openings rose surprisingly in August, adding to the story that while the labor market may be cooling, it’s not slowing down fast.
New data from the Bureau of Labor Statistics There were 8.04 million job openings at the end of August released on Tuesday, up from 7.71 million seen in July. Economists polled by Bloomberg expected jobs to rise slightly to 7.67 million in August, the report said.
July’s figure was revised from the 7.67 million job openings initially reported.
The Job Openings and Labor Turnover Survey (JOLTS) showed that 5.31 million were hired this month, up from 5.41 million in July. The hiring rate was 3.3% in August, down from 3.4% in July. In Tuesday’s report, the exit rate fell to 1.9%, the lowest since June 2020, in a sign of optimism among workers.
Stocks will drop in early October
U.S. stocks fell on Tuesday for the first trading day in October and the start of the fourth quarter.
The Dow Jones Industrial Average (^DJI) fell roughly 0.4%, while the S&P 500 (^GSPC) fell about 0.3% after both major indexes hit a new record on Monday. The tech-heavy Nasdaq Composite ( ^IXIC ) fell 0.3%.
Stellantis shares fell further amid Jeep recalls due to fire risks
Jeep maker Stellandis ( STLA ) fell 1% in premarket trading Tuesday. Issue a callback “Potential fire hazard” for more than 150,000 hybrid Jeep SUVs.
The decline in Stellandis shares comes a day after the stock fell 12.5% in reaction to the automaker’s gloomy outlook for its North American operations. Stellartis — maker of Dodge and Ram cars — expects to post full-year profit margins of 5.5% to 7%, up from its previous double-digit guidance. To counter the deteriorating conditions in the global automobile industry, automakers are planning cost-cutting measures and discounts, Yahoo Finance reporter Pres Subramanian explains about market dominance.
Meanwhile, the newly issued recall affects the 2020-2024 Jeep Wrangler 4xe and 2022-2024 Jeep Cherokee 4xe SUVs. The company said an internal investigation found 13 fires linked to the problem, but estimates only 5% of recalled vehicles pose a fire risk.
Barclays pulls no punches on Apple
Barclays analyst Tim Long dropped the mic on Apple ( AAPL ) this morning in a new note that called out weak demand for the iPhone 16.
Here’s what Lang said:
“A few weeks after the launch of Apple Insights, there was a lot of news about increased iPhone production in early July. Based on our recent supply chain channel tests, we believe AAPL may have cut about 3 million units of a key semiconductor component. iPhones in the December quarter, the earliest phase cut in recent history. If confirmed, we suggest softer demand for the IP16 globally in the first week of sales compared to last year, with longer-than-expected supply chain bottlenecks, particularly across the US and China Pointing to softer-than-expected demand.
Long reiterated his Underweight rating on Apple (equivalent to Sell).
