Stocks Stage a Comeback: Nasdaq Leaps 1% as Investors Cheer Sluggish Job Growth
After a nail-biting day in the financial jungle, U.S. stocks emerged triumphant, with the Nasdaq leading the charge, surging over 1%, just one day after a hair-raising sell-off. The excitement stemmed from the latest economic news, revealing that U.S. private payrolls in September missed the mark. Like a game of economic limbo, the Consumer Discretionary sector took the lead, vaulting 2% higher, closely followed by Communication Services and Technology.
The sigh of relief was echoed in the drop of U.S. Treasury yields from their 16-year highs. Investors, fretting about climbing interest rates and the Federal Reserve’s looming decisions, gave a standing ovation to the ADP National Employment Report. Recent market jitters had brought the S&P 500 dangerously close to its 200-day moving average, teetering around 4,203.
While we wait for Friday’s jobs report, hoping it doesn’t deliver any more surprises, Wall Street’s wild ride continues, with mega-cap stars like Amazon.com shining, and even Ford Motor revving up its engines with an impressive 8% rise in U.S. auto sales. Buckle up, folks, because as we await those third-quarter earnings reports, the stock market’s rollercoaster is far from over!
Stock Market Today: Dow snaps losing streak as Treasury yield storm calms
The Dow closed higher to snap a three-day losing streak on Wednesday as data showing the pace of private job growth slowed to a 32-month low eased fears somewhat that the Federal Reserve may not need to hike again before year-end, halting the recent rise in Treasury yields.
The Dow Jones Industrial Average rose 0.4%, 127 points, Nasdaq surged 1.4%, and the S&P 500 rose 0.8%,
Slowing private job gains, weaker services data keep lid on Treasuries yields
private payrolls grew by 89,000 in September, a sharp decline from the 180,000 in August, according to a report released Wednesday by ADP and Moody’s (NYSE:MCO) Analytics. That was well short of economists’ forecast of 153,000 and the pace of slowest growth since January 2021.
The slowing job gains seen last month pointing to the easing tightness in the labor market contrasted with data released Tuesday showing an unexpected labor strength in demand.
The fewer private job gains last month has also coincided with a “steady decline in wages in the past 12 months,” Nela Richardson, chief economist at ADP, said.
U.S. services activity, meanwhile, slowed slightly in September, adding to hopes that the Fed’s higher for longer rates are starting to bite into growth in services sector, which remains a key driver of inflation.
Treasury yields took a breather from their recent melt up following the data amid easing bets that the Fed will be forced to hike rates in November.
About 22% of traders expect the Fed to raise rates in November, down from nearly 30% a day earlier, according to the Investing.com‘s Fed Rate Monitor Tool.
Tech in vogue as rates storm calm; Intel gains on spin off plans for programmable chip business
Growth sectors of the market including tech were back in demand underpinned by easing Treasury yields, with Alphabet Inc Class A (NASDAQ:GOOGL) and Microsoft Corporation (NASDAQ:MSFT) leading to the upside.
Apple Inc (NASDAQ:AAPL) closed nearly 1% higher despite KeyBanc downgrading the iPhone maker to sector weight from overweight, citing valuation concerns.
Intel (NASDAQ:INTC) rose after detailing plans late Tuesday to separate its programmable chip business into a standalone entity starting Jan. 1, paving for initial public offering in two to three years
The move suggests that Intel “isn’t done restructuring its assets through shareholder friendly strategies, creating room for more potential value creation moving forward,” Wedbush said.
Energy slips on falling oil prices as gas inventories jump, OPEC+ holds the line on production
Energy stocks failed to join in on the broad market rally as oil prices slumped more than 5% after gasoline inventories jumped and ministers from OPEC and allies led by Russia, or OPEC+, decided to keep production levels unchanged.
Marathon Oil (NYSE:MRO), Devon Energy Corporation (NYSE:DVN), and Schlumberger NV (NYSE:SLB) were among the biggest decliners on the day.
The decision to stand pat on production was widely expected, while Saudi Arabia and Russia reiterated they will persist with supply cuts through year end.
The supply cuts are needed to offset slowing demand growth and support prices.
“OPEC+ leaders need to remain committed to supply restraint—and keep output near current levels over the next year—to keep oil inventories generally low and prices high,” S&P Global said in a report earlier this week.
Stock Market Today: Dow snaps losing streak as Treasury yield storm calms
Source: Investing.com
Dollar Tree (NASDAQ:DLTR) Stages a ‘Retail Rumble,’ But the Titans Reign Supreme
In a world where stock prices often resemble rollercoasters, Dollar Tree (NASDAQ:DLTR) decided to hop on the ride on Wednesday, making a modest climb to $104.77. However, let’s not forget that it’s a long way down from the glory days when it soared to $170.36 back on November 15th. In the fiercely competitive retail arena, Dollar Tree’s stock performance has been about as thrilling as a clearance rack in the corner of a bustling store, trailing behind heavyweights like Amazon.com Inc (NASDAQ:AMZN), Walmart Inc (NYSE:WMT), and Costco Wholesale Corp (NASDAQ:COST).
On Wednesday, Dollar Tree saw 2.1 million shares changing hands, just shy of its 50-day average of 2.3 million daily trades. It’s almost like the stock market was playing a game of hide-and-seek, with Dollar Tree staying just out of sight despite the broader market’s cheerful demeanor.
This is just the latest chapter in Dollar Tree’s ongoing struggles, with its stock value taking a dive from its November peak. Right now, it’s playing catch-up, trailing behind by a hefty $65.59 compared to its glory days last year.
While Dollar Tree might have had a recent rally, it’s still in the rearview mirror of retail titans like Amazon.com Inc., Walmart Inc., and Costco Wholesale Corp. These giants continue to flex their muscles and dominate the stock market with the finesse of seasoned gladiators in the arena of commerce.
Healthcare Workers Stage Epic ‘Healthy Pay Day’ Protest: 75,000 Kaiser Permanente Employees Walk Out Nationwide!
In a dramatic showdown between stethoscopes and spreadsheets, approximately 75,000 healthcare heroes took to the picket lines for a carefully orchestrated three-day strike at Kaiser Permanente facilities all across the United States. This monumental walkout, the biggest ever in the medical realm, transforms hospital hallways into battlegrounds, all in the name of fair wages and adequate staffing.
Nurses, medical technicians, and their supporting cast of healthcare warriors descended upon dozens of medical citadels in California, Oregon, Washington, Colorado, Virginia, and the District of Columbia. Kaiser, however, remains unfazed, vowing to keep its hospitals and emergency rooms humming along, thanks to a makeshift army of doctors, managers, and “contingency workers.”
At the heart of this labor opera is a coalition of unions representing these striking champions. They claim that Kaiser Permanente, a titan in the not-for-profit healthcare realm, has turned a blind eye to a staffing conundrum that has healthcare workers stretched thin, feeling like they’re working on a budget from the early 2000s while compromising patient care in the process.
Kaiser, for its part, acknowledges the staffing issues that have haunted the entire healthcare industry, thanks to the pandemic-induced “burnout” that has prompted over 5 million medical professionals to rethink their careers. Yet, the unions also demand a sweeter paycheck. Kaiser, quick on the draw, asserts that it’s already leading the salary race in all markets it serves, dangling a tempting 12.5% to 16% wage hike over four years.
As the unions and the healthcare juggernaut joust for supremacy, the picket signs remain aloft, and the battle rages on. For now, the strike’s spotlight will shine through Friday, but behind closed doors, negotiations continue. It’s a battle of bedside manner and balance sheets, and the prognosis for a resolution remains uncertain. Stay tuned for the next chapter in this medical melodrama.
Smart investing is like a finely brewed cup of coffee: it requires patience, precision, and just the right blend of knowledge and risk. Much like sipping a carefully crafted latte, a well-planned investment portfolio can bring you a daily dose of financial satisfaction, without the jitters. So, remember, when it comes to investing, don’t settle for instant, go for the artisanal approach and savor the sweet taste of long-term success!