The Dow Jones Industrial Average pared the morning's losses but continued to trade lower by 0.4% at noon ET. The Nasdaq, which opened lower by 0.8%, is down 2% at noon.
The S&P 500 was also down 0.8% in the morning and has slipped to down 1%. The small-cap Russell 2000 fell 2% at noon after opening 1.5% lower. Volume was higher on both the Nasdaq and the NYSE compared to the same time yesterday.
Crude oil slipped further to $86.76 a barrel on continued fears of softening demand. Overnight, China locked down Chengdu, a city of 21 million, as its Covid Zero measures intensified.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31372.25 | -138.18 | -0.44 |
| S&P 500 | (0S&P5) | 3914.20 | -40.91 | -1 |
| Nasdaq | (0NDQC ) | 11569.25 | -245.37 | -2.08 |
| Russell 2000 | 179.95 | -3.65 | -1.99 | |
| IBD 50 | 27.28 | -1 | -3.54 | |
Last Update: 12:00 PM ET 9/1/2022 |
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Treasury yields jumped. The yield on the benchmark 10-year Treasury surged to 3.27% — an increase of 14 basis points.
Initial jobless claims fell by 5,000 to 232,000 for the week ended Aug. 27, indicating continued strength in the labor market. Productivity decreased 4.1% in the business sector and increased 4.7% in manufacturing during the second quarter.
The S&P Global U.S. Manufacturing PMI (Purchasing Managers Index) fell to the lowest level since July 2020. August's reading of 51.5 reflects that new orders fell for the third consecutive month. LPL Financial Chief Economist Jeffrey Roach sees the soft survey numbers as a sign that inflation is past its peak. Odds of a 75 basis points hike has fallen to 72% from 76% on Tuesday, according to the CME FedWatch Tool.
Steel stocks are among many cyclicals falling today. Steel Dynamics fell 5.6% and hit a sell signal after falling more than 8% from its 86.04 entry. Chemicals and energy groups also were among the weakest, as were a number of software groups.
Dow Jones Components
Dow Jones leader Disney is trading flat after news that it is exploring a membership program that would provide discounts to its theme parks, resorts and streamed content.
Shares of Apple ticked lower after IDC's research showed a lower global smartphone outlook for 2022. While the report said Apple's high-end market will be more resilient, slowing growth and high average selling prices will pressure growth.
Apple fell below its 200-day line Tuesday. The company on Sept. 7 will likely unveil the new iPhone 14 model. The stock is now testing support along its 50-day moving average.
Outside Dow Jones: Nvidia Shows Chip Stimulus Has Limits
Elsewhere, Nvidia fell after the company said in a filing with the SEC that a new licensing requirement might impact sales of some of its chips to China and Russia. Nvidia, which has been slumping for months, slid 9% in heavy trading.
The news is the latest that suggests the $52 billion stimulus bill for the chip industry has a caveat. Other companies that will likely be affected include Intel and Advanced Micro Devices. The iShares Semiconductor ETF has broken below the 50-day line. The Invesco QQQ Trust, which is Nvidia's largest ETF holder, is down 1.3%.
EV startups Nio and Li Auto are down sharply amid August deliveries numbers. Nio delivered 10,677 vehicles, an 81.6% increase from the previous year. Li Auto reported 4,571 deliveries, which is a 51% decline from the previous year. Shares of Tesla fell a more modest 1.2%.
Elsewhere, several companies are flashing sell signals.
Marten Transport is returning to its buy point of 20.04 after reaching a height of 23.43. The round trip is a sell signal that cautions investors to exit their position before incurring a loss.
Another company sending a round-trip sell signal is Intermex. The stock is returning to its buy point of 21.48 after reaching a high of 26.23.
Stock Market Hits Earnings Reports
Shares of Veeva gapped down nearly 15% to a three-month low. Earnings of $1.03 a share on revenue of $532.2 million beat views. But the company lowered its revenue guidance to $545 million-$547 million. For the year, it expects $2.15 billion in revenue.
Ollie's Bargain Outlet showed sales of $452.4 million for the second quarter and earnings of 22 cents a share compared to $415.9 million and 52 cents the previous year. Olli fell to its 200 day moving average, where it's getting some support.
Broadcom and Lululemon are set to announce quarterly results after the market closes. Both are down today.
