Wall Street Today | Whiplash Market Climbs, Falls, Finishes Flat Wednesday
The market was trying its best to rebound Wednesday, but mid day strength gave way to a decline by later afternoon. Still, top decliners on the Dow reversed their falls and pushed the index higher just before the close.
Just past 4 pm ET the $S&P 500 Index (.SPX.US)$ traded down just 0.16%, the $Dow Jones Industrial Average (.DJI.US)$ climbed 0.09%, and the $Nasdaq Composite Index (.IXIC.US)$ fell 0.30%.
MACRO
Wednesday, the JOLTS job openings came in lower than expected at 7.6M vs 8M. It is the lowest hiring data for open positions since 2021.
Tuesday, both the S&P PMI and ISM PMI index numbers came out lower than estimated, with ISM at 47.2 vs 47.5 and S&P at 47.9 vs 48, compared to last months 46.8 and 49.6 respectively.
In macroeconomics this week, investors are awaiting initial and continuing jobless claims figures from the Department of Labor Statistics Thursday, and the Unemployment rate and nonfarm payrolls from the Bureau of Labor Statistics Friday. The market is watching for signs of labor softness that could hurt stock prices, but help the chances of an FOMC rate cut during the committee's upcoming September 17-18 meeting.
SECTORS
Ten out of 11 sectors of the S&P 500 were in the red Wednesday. $Crude Oil Futures(NOV4) (CLmain.US)$ fell again, below $68/barrel reaching a price not seen since 2023. INvestors are awaiting Crude Oil Stockpile data Thursday morning.
U.S. crude oil inventories are expected to have decreased last week along with withdrawals from gasoline stocks ahead of the Labor Day holiday weekend, according to a survey by The Wall Street Journal. Commercial crude oil stockpiles are seen down by 700,000 barrels at 424.5 million barrels in the week ended Aug. 30, according to the average estimate of 10 analysts and traders. Four analysts predict an increase and six expect a fall. Expectations range from a withdrawal of 3.5 million barrels to a build of 1.7 million barrels.
The inventory data from the U.S. Energy Information Administration is scheduled for release at Thursday at 11 a.m. ET.
$Bitcoin (BTC.CC)$ hovered near $57k, Gold pulled back from its high. $U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ and the $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ continued to fall, the 2-year nearly below the 10 at one point for seconds right after 10 am ET, leading to a positive yield curve for the first time since 2022, Bloomberg reported.
A yield curve is the relationship between short term and long term yields, and for two years it has been inverted: higher yields in the short term than the long-term. Economists and speculators alike see inverted yield curves as signs of economic strife.
MOOVERS
$Dollar Tree (DLTR.US)$ stock fell 21%, the lowest on the S&P 500 and Nasdaq 100 after the company reported worse-than-expected second-quarter 2024 earnings. The discount variety stores chain reported an adjusted EPS of $0.67, missing the consensus of $1.04, and down 26.4% year over year.
$Gitlab (GTLB.US)$ climbed 21% Wednesday after the dev platform hiked its full-year guidance Tuesday after the bell. GitLab now sees adjusted earnings of between 45 and 47 cents a share on sales of between $742 million and $744 million for the fiscal year 2025. That's up from previous guidance of adjusted earnings of between 34 cents and 37 cents a share.
Meanwhile Cybersecurity company $Zscaler (ZS.US)$ fell 18%, another after its profit guidance came up short despite better-than-expected results. Zscaler posted adjusted earnings of 88 cents a share on revenue of $593 million in the quarter. It now expects adjusted earnings per share of between $2.81 and $2.87 for the full fiscal year, below analyst estimates.
$Dick's Sporting Goods (DKS.US)$ fell 5% after the sports retailer beat earnings estimates Wednesday morning, but reported guidance below high retail expectations. The company continues to forecast sales of $13.1 billion to $13.2 billion. The Street is looking for revenue of $13.24 billion and same-store sales growth of 2.9%.
Investors are waiting for tech giants $Broadcom (AVGO.US)$ and $DocuSign (DOCU.US)$ earnings Thursday.
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Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See this link for more information.
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