The US labour market showed signs of a steady slowdown in October, with job openings increasing moderately and layoffs declining, according to the latest Job Openings and Labor Turnover Survey (JOLTS) report released by the Bureau of Labor Statistics on Tuesday. Job openings, a key indicator of labour demand, rose by 372,000 to 7.744 million at the end of October. However, the September figures were revised downward to 7.372 million from the initially reported 7.443 million. Economists polled by Reuters had anticipated 7.475 million vacancies. Labour Market Dynamics While job openings increased, hires dropped by 269,000 to 5.313 million, and layoffs fell by 169,000 to 1.633 million. These figures suggest a gradual cooling of the labour market rather than a sharp contraction. Hurricanes and strikes also impacted October’s labour market data. Rebuilding efforts in storm-affected regions and the resolution of strikes at Boeing and another aerospace company are expected to contribute to a ...
The S&P 500 and Nasdaq closed lower on Tuesday, weighed down by weak performances in chip and megacap shares ahead of significant tech earnings reports this week. In contrast, the Dow Jones Industrial Average managed modest gains.
Key Points:
- Microsoft Decline: Microsoft, a leader in artificial intelligence, fell 0.89% to US$422.92 ahead of its quarterly results. Post-closing bell, the company’s shares dropped about 5% after reporting slower-than-expected growth in its Azure cloud-computing service.
- Nvidia Slump: Nvidia, a major beneficiary of potential AI growth and the year’s second-best S&P 500 performer, tumbled 7.04% to US$103.73, dragging other chip stocks down and causing the Philadelphia semiconductor index to fall 3.88%.
- Tech Earnings: Other major tech companies, including Apple, Amazon, and Meta Platforms, are set to report earnings this week. Apple edged up 0.26% to US$218.80, while Amazon slipped 0.81% to US$181.71, and Meta dropped 0.54% to US$463.19 due to valuation concerns.
- Market Sentiment: "A lot of people are looking at artificial intelligence now and saying this is all great but how do I make money on it," said Stephen Massocca, senior vice president at Wedbush Securities.
- Market Indices Performance:
- Dow Jones Industrial Average rose 203.40 points (0.5%) to 40,743.33.
- S&P 500 lost 27.10 points (0.5%) to 5,436.44.
- Nasdaq Composite lost 222.78 points (1.28%) to 17,147.42.
- Small-cap Russell 2000 gained 0.35%.
- S&P Value 500 index advanced 0.52%, buoyed by financials.
Sector and Stock Movements:
- Sector Performance: Energy (up 1.54%) and financials were the best-performing sectors, while technology (down 2.2%) was the weakest.
- Financials Outperform: Financials jumped 1.19%, outperforming the broader market as recent market rotations favor less expensive stocks amidst expectations of Federal Reserve rate cuts.
- Single Stock Movements:
- Procter & Gamble fell 4.84% to US$161.70 after missing Q4 sales expectations.
- Merck plunged 9.81% to US$115.25 after cutting its annual profit forecast.
- CrowdStrike dropped 9.72% to US$233.65 following a report that Delta Air Lines sought compensation from the firm and Microsoft for a recent cyber outage.
- F5 surged 12.99% to US$200.66 after forecasting strong Q4 results.
Market Outlook:
- Federal Reserve Decision: The market is betting on a slight chance of a Fed rate cut by 25 basis points at Wednesday's meeting, with a cut fully priced in for September, according to CME’s FedWatch Tool.
- Labor Data: Upcoming labor data releases, including Friday’s government payrolls report, will be critical. The Job Openings and Labor Turnover Survey reported 8.18 million job openings in June, exceeding economists' expectations of eight million.
Market Breadth and Volume:
- Advancing vs. Declining Issues: On the NYSE, advancing issues outnumbered decliners by a 1.54-to-1 ratio, while on the Nasdaq, declining issues outnumbered advancers by a 1.16-to-1 ratio.
- New Highs and Lows: The S&P 500 posted 73 new 52-week highs and one new low, while the Nasdaq Composite recorded 133 new highs and 126 new lows.
- Volume: US exchanges saw a trading volume of 11.25 billion shares, slightly above the 20-day average of 11.19 billion.
The market's cautious stance ahead of critical tech earnings and the Federal Reserve’s policy meeting highlights the prevailing uncertainty and investor vigilance.
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