Markets responded favorably to a weaker job report at opening but reversed downward at noon ET. The Dow Jones Industrial Average was down 0.3% while the S&P 500 was off 0.2%.
The tech-heavy Nasdaq had risen 1% earlier but is down 0.2%. The Russell 2000 slipped by 0.4%. Volume was lower on the Nasdaq and unchanged on the NYSE compared to the same time yesterday.
The yield on the benchmark 10-year Treasury inched up to 3.11%. Crude oil continued to fall on fears of softening demand and traded at $90.50 a barrel.
The Innovator IBD 50 ETF was down 0.6%.
CF Industries triggered a sell rule by falling 8% from its buy point of 113.58. Other IBD 50 stocks, including Steel Dynamics, Commercial Metals, Silgan Holdings and Onsemi should be watched as they get close to falling 7% below the latest buy points.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31713.23 | -77.23 | -0.33 |
| S&P 500 | (0S&P5) | 3978.76 | -7.4 | -0.2 |
| Nasdaq | (0NDQC ) | 11867.51 | -12.91 | -0.2 |
| Russell 2000 | 184.14 | -0.33 | -0.20 | |
| IBD 50 | 28.23 | -0.16 | -0.58 | |
Last Update: 12:00 PM ET 8/31/2022 |
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Expectations that an era of higher rates in the near term will likely affect the high valuation in growth stocks are pressuring markets. According to Brad McMillan, Chief Investment Officer for Commonwealth Financial Network, the current action is a normal cycle of policy and reaction rather than something worse.
On Tuesday, the JOLTS jobs openings were surprisingly higher and increased the odds of a 75-basis point rate hike in September. Tomorrow's initial jobless claims and Friday's nonfarm payrolls will give new indications whether the labor market is cooling off. The August payrolls report is expected to show 285,000 new hires.
However, ADP numbers today showed the private sector added 132,000 jobs in August, lower than 288,000 expected. According to Jeffrey Roach, chief economist at LPL Financial, the ADP report has had a low 29% correlation with the actual numbers that the Bureau of Labor Statistics reports.
Outside Dow Jones: Stocks Moving Today
Baidu is rebounding from yesterday's slide in strong volume. The stock is testing support along its 50-day moving average. The company beat revenue estimates but also showed its first revenue contraction in two years. Shares are up over 6% today.
Facebook parent Meta Platforms gapped up 5% and is hovering around its 50-day line. The company announced that it is shutting down its gaming app in October.
Shares of Snap are up over 8% in strong volume after the company announced cost-cutting measures. Netflix rose nearly 4% on news that it is hiring two Snap executives to give its ad business a push.
Meme stock Bed Bath & Beyond is plunging after the company announced measures to turn itself around. The retailer filed for a new common stock offering. It is closing around 150 stores and cutting its workforce and capital expenditures for the year.
The company announced closing a loan deal of more than $500 million to improve its operations and cash flows. BBBY has been on a roller coaster since GameStop Chairman Ryan Cohen bought a 9.8% stake in the company and then exited it. Shares have gapped down over 20% and are aiming toward their 50-day moving average.
Earnings Movers In Today's Stock Market
HP cut its full year forecast to $4.02-$4.12 a share, down from earlier numbers of $4.24- $4.38. Earnings of $1.04 per share missed estimates.
ChargePoint Holdings topped views. Revenue grew 93% from last year to $108.3 million. The company sees continued demand driving revenue of $125 million to $135 million in the third quarter. Shares are up 15% and have thrust past their 200 day line today.
Shares of pet retailer Chewy are down after the company cut forecasts.
Software company Broadcom is on tap tomorrow along with athletic apparel company Lululemon after the market closes. Ollie's Bargain Outlet reports before the open.
