The stock market remained lower as the Nasdaq's losses grew two hours before the next announcement on interest rates. Job data showed a strong labor market, complicating calls for a pivot to less-aggressive rate hikes.
The Nasdaq has lagged lately, and that showed in midday trading.
The Nasdaq's loss grew to 0.9% and the index traded near session lows. The S&P 500 has not moved much since its early drop and is down 0.4%. But the Dow Jones Industrial Average cut its loss to 0.1%. The small-cap Russell 2000 was off 1.2%.
Volume was roughly 20% lower on the NYSE and Nasdaq compared with the same time on Tuesday, although that's bound to change this afternoon.
Fed Rate Decision And Outlook This Afternoon
The Federal Reserve issues its statement on interest rates at 2 p.m. ET today. Most financial markets expect another 75-basis-point increase in the fed funds rate. Stock market investors are also looking for hints on the Fed's mindset for its December meeting.
Markets hope for a shift in the tightening cycle and it's hard to imagine stocks taking any Powell comment with a simple shrug. In other words, don't expect this morning's calm to last all day.
The yield on the 10-year Treasury note was almost unchanged at 4.03% at midday.
Before the open, a preview of Friday's employment report showed a firm job market. The stronger the job market, the more likely the Fed will keep tightening. So, stock futures dipped after the ADP National Employment Report came out at 8:15 a.m. ET.
The report showed private sector employers added 239,000 jobs in October, while annual pay rose 7.7% year-over-year.
"This is a really strong number given the maturity of the economic recovery, but the hiring was not broad-based," ADP Chief Economist Nela Richardson said in the company's statement. "Goods producers, which are sensitive to interest rates, are pulling back, and job changers are commanding smaller pay gains. While we're seeing early signs of Fed-driven demand destruction, it's affecting only certain sectors of the labor market."
Earnings Reports Spark Big Stock Market Moves
In stock market earnings, Devon Energy fell below its 75.37 buy point from last week's breakout. The oil and gas exploration company beat earnings expectations but cut its quarterly dividend to $1.35 per share, from $1.55 in the last quarter.
Advanced Micro Devices climbed 2.5% in heavy volume, rising above its 21-day exponential moving average. The gain came even though AMD missed third-quarter estimates and offered a weak outlook.
Airbnb fell nearly 10% in big volume, dropping to the lows of its current base. While Q3 results beat views, the lodging rental platform gave a cautious Q4 outlook.
Rogers Plummets After Deal Falls Apart
Chemicals giant DuPont surged 6% in heavy trading, rising until it met resistance at its 200-day moving average.
The company ended its planned acquisition of Rogers because it could not obtain regulatory approvals. One analyst said China would not give the deal a timely approval. Rogers, a specialty materials supplier, plummeted 43% in huge volume.
Innovator IBD 50 ETF reversed higher and was up 0.2%.
Super Micro Computer shot out of a cup base and is already extended from the 75.03 buy point after the stock jumped 18%. The computer products maker beat sales and profit expectations late Tuesday.
Several IBD 50 stocks are in buy zones. While they can be considered for purchase, today's Fed-related news could spark moves that require monitoring.
W.W. Grainger, Pure Storage, AMN Healthcare Services, ExlService, Flex, Patterson-UTI Energy, Murphy USA and Wingstop are the ones to watch.
Now rose above the 13.50 buy point of a cup without handle base in active trading. MarketSmith shows the oil machinery company today posted a 500% surge in earnings and 31% higher sales in the third quarter.
Broadcasting equipment maker Belden broke out of another cup base after posting a 33% rise in earnings and 11% higher sales. The stock is above the buy point of 71.07 in a buy zone that goes to 74.62. Belden trades an average of 226,000 shares a day, although its daily average dollar volume is nearly $17 million.
