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U.S. stocks ended lower for the second-straight session on Tuesday as better-than-expected economic data dimmed hopes of the Fed signaling a slower pace of interest rate hikes in the future after it announces another massive rate hike at the end of its two-day policy meeting starting on Wednesday. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slipped 0.2% or 79.75 points to finish at 32,653.20 points.
The S&P 500 dropped 0.4% or 15.88 points to end at 3,856.10 points. Tech and consumer discretionary stocks were the biggest losers.
The Consumer Discretionary Select Sector SPDR (XLY) declined 1%, while the Technology Select Sector SPDR (XLK) lost 0.8%. The Energy Select Sector SPDR (XLE) gained 1%. Six of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq slid 0.9% or 97.30 points to close at 10,890.85 points.
The fear-gauge CBOE Volatility Index (VIX) was down 0.27% to 25.81. Advancers outnumbered decliners on the NYSE by a 1.56-to-1 ratio. On Nasdaq, a 1.29-to-1 ratio favored advancing issues. A total of 11.11 billion shares were traded on Tuesday, lower than the last 20-session average of 11.45 billion.
Investors Worried Ahead of Fed’s Rate Hike
The Dow ended 14% higher last month to record its best monthly percentage gain since 1976 and its best October performance ever. The S&P 500 and Nasdaq also made a solid rebound in October, finishing the month in green. However, the rally seems to have come to a halt ahead of the Fed’s two-day policy meeting.
On Tuesday, investors’ spirits were dampened as economic data showed solid U.S. job openings in September, which came in above expectations. The impressive economic data didn’t work in favor of the markets as investors now fear that it will prevent the Fed from going slow on its aggressive rate-hike policy in its fight to control surging inflation.
Economic data released last week hinted at inflation easing. This made investors believe that the expected 75-basis point hike might be the last of the job rate hikes by the Fed and it might signal a smaller size of rate hikes or pauses its hikes in the coming months.
However, the hopes were dimmed following the release of the data on Tuesday. Tech stocks were once again one of the biggest losers on Tuesday. Shares of Salesforce, Inc. (CRM - Free Report) declined 1.7%, while Netflix, Inc. (NFLX - Free Report) fell 1.8%.
The third-quarter earnings season has been mixed so far.
However, some of the losses were pared on Tuesday with Pfizer Inc. (PFE - Free Report) both reporting impressive quarterly results. Pfizer reported third-quarter 2022 earnings of $1.78 per share, beating the Zacks Consensus Estimate of $1.47 per share. Pfizer has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Shares of Uber Technologies, Inc. (UBER - Free Report) jumped 12% after the company reported third-quarter 2022 revenues of $8.34 billion, surpassing the Zacks Consensus Estimate of $8.08 billion.
Economic Data
The Labor Department said on Tuesday that U.S. job openings increased to 10.7 million in September, up from 10.3 million in the previous month. Economists had expected job openings to drop below 10 million.
In other economic data, the Institute for Supply Management’s manufacturing index declined 0.7% points to 50.2 in October, its lowest level since May 2020. However, construction spending unexpectedly rose 0.2% in September to a seasonally adjusted annual rate of $1,811.1 billion.
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Stock Market News for Nov 2, 2022
U.S. stocks ended lower for the second-straight session on Tuesday as better-than-expected economic data dimmed hopes of the Fed signaling a slower pace of interest rate hikes in the future after it announces another massive rate hike at the end of its two-day policy meeting starting on Wednesday. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slipped 0.2% or 79.75 points to finish at 32,653.20 points.
The S&P 500 dropped 0.4% or 15.88 points to end at 3,856.10 points. Tech and consumer discretionary stocks were the biggest losers.
The Consumer Discretionary Select Sector SPDR (XLY) declined 1%, while the Technology Select Sector SPDR (XLK) lost 0.8%. The Energy Select Sector SPDR (XLE) gained 1%. Six of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq slid 0.9% or 97.30 points to close at 10,890.85 points.
The fear-gauge CBOE Volatility Index (VIX) was down 0.27% to 25.81. Advancers outnumbered decliners on the NYSE by a 1.56-to-1 ratio. On Nasdaq, a 1.29-to-1 ratio favored advancing issues. A total of 11.11 billion shares were traded on Tuesday, lower than the last 20-session average of 11.45 billion.
Investors Worried Ahead of Fed’s Rate Hike
The Dow ended 14% higher last month to record its best monthly percentage gain since 1976 and its best October performance ever. The S&P 500 and Nasdaq also made a solid rebound in October, finishing the month in green. However, the rally seems to have come to a halt ahead of the Fed’s two-day policy meeting.
On Tuesday, investors’ spirits were dampened as economic data showed solid U.S. job openings in September, which came in above expectations. The impressive economic data didn’t work in favor of the markets as investors now fear that it will prevent the Fed from going slow on its aggressive rate-hike policy in its fight to control surging inflation.
Economic data released last week hinted at inflation easing. This made investors believe that the expected 75-basis point hike might be the last of the job rate hikes by the Fed and it might signal a smaller size of rate hikes or pauses its hikes in the coming months.
However, the hopes were dimmed following the release of the data on Tuesday. Tech stocks were once again one of the biggest losers on Tuesday. Shares of Salesforce, Inc. (CRM - Free Report) declined 1.7%, while Netflix, Inc. (NFLX - Free Report) fell 1.8%.
The third-quarter earnings season has been mixed so far.
However, some of the losses were pared on Tuesday with Pfizer Inc. (PFE - Free Report) both reporting impressive quarterly results. Pfizer reported third-quarter 2022 earnings of $1.78 per share, beating the Zacks Consensus Estimate of $1.47 per share. Pfizer has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Shares of Uber Technologies, Inc. (UBER - Free Report) jumped 12% after the company reported third-quarter 2022 revenues of $8.34 billion, surpassing the Zacks Consensus Estimate of $8.08 billion.
Economic Data
The Labor Department said on Tuesday that U.S. job openings increased to 10.7 million in September, up from 10.3 million in the previous month. Economists had expected job openings to drop below 10 million.
In other economic data, the Institute for Supply Management’s manufacturing index declined 0.7% points to 50.2 in October, its lowest level since May 2020. However, construction spending unexpectedly rose 0.2% in September to a seasonally adjusted annual rate of $1,811.1 billion.