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U.S. stocks extended their losses to the third straight session on Tuesday as investors worried about fresh inflation data ahead of the third-quarter earnings that goes into full swing this week. All the three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 0.3% or 117.72 points to finish at 34,378.34 points.
The S&P 500 declined 0.2% or 10.54 points to end at 4,350.65 points. Consumer discretionary stocks bounced back from their Monday’s lows. Also, real estate stocks made gains.
The Communication Services Select Sector SPDR (XLC) gained 0.8%, while the Real Estate Select Sector SPDR (XLRE) added 1.3%. Six of the 11 sectors of the benchmark index ended in positive territory.
The fear-gauge CBOE Volatility Index (VIX) was down 0.75% to 19.85. A total of 9.17 billion shares were traded on Tuesday, lower than the last 20-session average of 10.8 billion. Advancers outnumbered decliners on the NYSE by a 1.38-to-1 ratio. On Nasdaq, a 1.42-to-1 ratio favored advancing issues.
Investors Jittery Ahead of Q3 Earnings
Most of the indexes traded almost flat throughout the day, before selling picked up in the closing hours. Investors are worried ahead of the third quarter of earnings as they believe that many companies will be will be reporting problem related to the supply chain and that inflation is affecting profit.
This may lead to markets taking another hit. Investors are also eagerly waiting for fresh data on inflation. Investors are also looking forward to how companies are going to digest the rising costs of labor and raw material. This has made them shaky over past few sessions and Tuesday was no different, with stocks taking a hit.
Investors Await FOMC Minutes of Meeting
Investors are also waiting for the Federal Open Market Committee to release its minutes of the meeting from September. They will look forward to find clues about the Fed’s plans to roll back its easy monetary policy and when it will finally start doing it.
Economic Data
U.S. job openings unexpectedly fell to 10.4 million in August from 11.1 million in July, according to a government report. This was mainly because a large number of people quit their jobs in August, while businesses scrambled to fill vacancies.
The National Federation of Independent Business said on Tuesday that its optimism index fell one point in September to 99.1. This is the lowest reading since March as optimism among small business owners have been on the decline for quite some time owing to labor and supplies shortage.
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Stock Market News for Oct 13, 2021
U.S. stocks extended their losses to the third straight session on Tuesday as investors worried about fresh inflation data ahead of the third-quarter earnings that goes into full swing this week. All the three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 0.3% or 117.72 points to finish at 34,378.34 points.
The S&P 500 declined 0.2% or 10.54 points to end at 4,350.65 points. Consumer discretionary stocks bounced back from their Monday’s lows. Also, real estate stocks made gains.
The Communication Services Select Sector SPDR (XLC) gained 0.8%, while the Real Estate Select Sector SPDR (XLRE) added 1.3%. Six of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq fell 0.1% or 20.28 points to close at 14,465.92 points. Shares of Apple, Inc. (AAPL - Free Report) declined 1.3%, while Amazon.com, Inc. (AMZN - Free Report) gained 1%. Amazon and Apple each carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The fear-gauge CBOE Volatility Index (VIX) was down 0.75% to 19.85. A total of 9.17 billion shares were traded on Tuesday, lower than the last 20-session average of 10.8 billion. Advancers outnumbered decliners on the NYSE by a 1.38-to-1 ratio. On Nasdaq, a 1.42-to-1 ratio favored advancing issues.
Investors Jittery Ahead of Q3 Earnings
Most of the indexes traded almost flat throughout the day, before selling picked up in the closing hours. Investors are worried ahead of the third quarter of earnings as they believe that many companies will be will be reporting problem related to the supply chain and that inflation is affecting profit.
This may lead to markets taking another hit. Investors are also eagerly waiting for fresh data on inflation. Investors are also looking forward to how companies are going to digest the rising costs of labor and raw material. This has made them shaky over past few sessions and Tuesday was no different, with stocks taking a hit.
Investors Await FOMC Minutes of Meeting
Investors are also waiting for the Federal Open Market Committee to release its minutes of the meeting from September. They will look forward to find clues about the Fed’s plans to roll back its easy monetary policy and when it will finally start doing it.
Economic Data
U.S. job openings unexpectedly fell to 10.4 million in August from 11.1 million in July, according to a government report. This was mainly because a large number of people quit their jobs in August, while businesses scrambled to fill vacancies.
The National Federation of Independent Business said on Tuesday that its optimism index fell one point in September to 99.1. This is the lowest reading since March as optimism among small business owners have been on the decline for quite some time owing to labor and supplies shortage.