adminU.S. stocks closed mostly lower Tuesday after data showed that job openings in the U.S. fell in October to a 28-month low, which may play into expectations that the Federal Reserve is done with its interest-rate hikes.
How stocks traded
-
The Dow Jones Industrial Average
DJIA
fell 79.88 points, or 0.2%, to close at 36,124.56 -
The S&P 500
SPX
declined 2.6 points, or 0.1%, to 4,567.18 -
The Nasdaq Composite
COMP
rose 44.42 points, or 0.3%, to finish at 14229.91
What drove markets
Stocks were mostly under pressure Tuesday after 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.
“The labor market is unmistakably cooling after running red hot for the last few years,” according to Bill Adams, chief economist for Comerica Bank.
“Markets should expect demand and supply for labor to come closer into balance, which should solidify expectations the Fed is done tightening, suppressing yields and supporting risk appetite,” Jeffrey Roach, chief economist for LPL Financial, wrote in emailed comments.
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, on Thursday by weekly unemployment claims data and on Friday the nonfarm-payrolls report.
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 level since March 2022, bolstered by falling bond yields and hopes that easing inflation means the Federal Reserve is done raising interest rates.
The cautious mood is lingering Tuesday, even as benchmark Treasury yields
BX:TMUBMUSD10Y
dipped back to 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 index
CN:SHCOMP
lost 1.7%, both falling to their lowest levels 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 wrap up 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 stock
DBI,
-4.91%
was down 33.3% following weaker-than-expected guidance from the parent company of brands including Keds and Lucky Brand. -
J.M. Smucker Co. shares
SJM,
-1.43%
were up 3.3% Tuesday after the consumer-staples company beat third-quarter profit estimates, although sales declined and the company lowered guidance. -
AutoZone Inc. shares
AZO,
-0.46%
were up 0.3% Tuesday after the auto-parts retailer’s earnings beat earnings-per-share expectations.
Jamie Chisholm contributed.
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