We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
U.S. stock markets closed mixed on Thursday as market participants remained uncertain whether the Fed will opt for more interest rate hike this year or not. Moreover, a decision of the government of China also affected technology sector. The S&P 500 and the Nasdaq Composite ended in negative territory while the Dow finished in positive zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) up 0.2% to close at 34,500.73 after a choppy session. Notably, 14 components of the 30-stock index ended in positive territory, while 16 in negative territory. At its intraday low, the blue-chip index was down nearly 100 points.
The tech-heavy Nasdaq Composite finished at 13,748.83, sliding 0.9% or 123.64 points due to weak performance of large-cap technology stocks. The tech-laden index posted a four-day losing streak.
The S&P 500 dropped 0.3% to end at 4,451.14. Six out of 11 broad sectors of the benchmark ended in negative territory, while five finished in green. The Technology Select Sector SPDR (XLK) tumbled 1.5%, while the Utilities Select Sector SPDR (XLU) gained 1.3%.
The fear-gauge CBOE Volatility Index (VIX) was down 0.4% to 14.40. A total of 9.76 billion shares were traded on Thursday, lower than the last 20-session average of 10.1 billion. Decliners outnumbered decliners on the NYSE by a 1.80-to-1 ratio. On Nasdaq, a 2.03-to-1 ratio favored declining issues.
Technology Stocks Suffer
Crude oil prices spiked on Sep 5, following the decision of Saudi Arabia to extend its daily production cut decision until the end of 2023. Investors are concerned that higher crude oil prices will result in higher inflation.
Moreover, yields on various U.S. government bonds spiked on Sep 5 and 6. Although these yields fell marginally on Sep 7, they remained elevated. Higher risk-free market interest rate is detrimental to growth stocks like technology. These companies depend on easy access to cheap credits.
Apple Suffers Setback
Finally, China has banned the use of iPhone of Apple inc. (AAPL - Free Report) for its government employees for security reasons. On Sep 6, the Wall Street Journal reported that China has ordered officials at central government agencies not to bring iPhones into the office or use them for work. On Sep 7, Bloomberg reported that the ban could be extended to other state companies and government-backed agencies.
Recently, tensions between the United States and China heightened regarding the sovereignty of Taiwan. Together mainland China, Hong Kong and Taiwan constitute Apple’s third-largest market, accounting for nearly 18% of total revenue.
The Department of Labor reported that weekly jobless claims decreased by 13,000 to 216,000 for the week ended Sep 2, lagging the consensus estimate of 236,000. Previous week’s data was revised upward to 229,000 from 228,000 reported earlier. Continuing claims — people who already received government unemployment benefit and run a week behind the headline number — came in at 1.679 million for the week ended Aug 26, a decrease of 40,000 from the previous week.
Nonfarm productivity in second-quarter 2023 revised downward to 3.5% from 3.7% reported earlier. Unit labor costs increased to 2.2% in revised estimate from 1.6% reported earlier.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Stock Market News for Sep 8, 2023
U.S. stock markets closed mixed on Thursday as market participants remained uncertain whether the Fed will opt for more interest rate hike this year or not. Moreover, a decision of the government of China also affected technology sector. The S&P 500 and the Nasdaq Composite ended in negative territory while the Dow finished in positive zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) up 0.2% to close at 34,500.73 after a choppy session. Notably, 14 components of the 30-stock index ended in positive territory, while 16 in negative territory. At its intraday low, the blue-chip index was down nearly 100 points.
The tech-heavy Nasdaq Composite finished at 13,748.83, sliding 0.9% or 123.64 points due to weak performance of large-cap technology stocks. The tech-laden index posted a four-day losing streak.
The S&P 500 dropped 0.3% to end at 4,451.14. Six out of 11 broad sectors of the benchmark ended in negative territory, while five finished in green. The Technology Select Sector SPDR (XLK) tumbled 1.5%, while the Utilities Select Sector SPDR (XLU) gained 1.3%.
The fear-gauge CBOE Volatility Index (VIX) was down 0.4% to 14.40. A total of 9.76 billion shares were traded on Thursday, lower than the last 20-session average of 10.1 billion. Decliners outnumbered decliners on the NYSE by a 1.80-to-1 ratio. On Nasdaq, a 2.03-to-1 ratio favored declining issues.
Technology Stocks Suffer
Crude oil prices spiked on Sep 5, following the decision of Saudi Arabia to extend its daily production cut decision until the end of 2023. Investors are concerned that higher crude oil prices will result in higher inflation.
Moreover, yields on various U.S. government bonds spiked on Sep 5 and 6. Although these yields fell marginally on Sep 7, they remained elevated. Higher risk-free market interest rate is detrimental to growth stocks like technology. These companies depend on easy access to cheap credits.
Apple Suffers Setback
Finally, China has banned the use of iPhone of Apple inc. (AAPL - Free Report) for its government employees for security reasons. On Sep 6, the Wall Street Journal reported that China has ordered officials at central government agencies not to bring iPhones into the office or use them for work. On Sep 7, Bloomberg reported that the ban could be extended to other state companies and government-backed agencies.
Recently, tensions between the United States and China heightened regarding the sovereignty of Taiwan. Together mainland China, Hong Kong and Taiwan constitute Apple’s third-largest market, accounting for nearly 18% of total revenue.
Consequently, stock price of Apple tumbled more than 4% in the past two trading sessions. Apple currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The Department of Labor reported that weekly jobless claims decreased by 13,000 to 216,000 for the week ended Sep 2, lagging the consensus estimate of 236,000. Previous week’s data was revised upward to 229,000 from 228,000 reported earlier. Continuing claims — people who already received government unemployment benefit and run a week behind the headline number — came in at 1.679 million for the week ended Aug 26, a decrease of 40,000 from the previous week.
Nonfarm productivity in second-quarter 2023 revised downward to 3.5% from 3.7% reported earlier. Unit labor costs increased to 2.2% in revised estimate from 1.6% reported earlier.