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Wall Street closed lower on Wednesday as investors awaited labor market data and digested earnings reports. The Nasdaq, the Dow and the S&P 500 all closed in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.6% or 234.21 points to close at 38,763.45. Notably, 18 components of the 30-stock index ended in negative territory, while 11 ended in positive zone and 1 remained unchanged.
The tech-heavy Nasdaq Composite declined 171.05 points, or 1.1%, to close at 16,195.81.
The S&P 500 tumbled 40.53 points, or 0.8%, to close at 5,199.5. Seven of the 11 broad sectors of the benchmark index closed in the red. The Consumer Discretionary Select Sector SPDR (XLY), the Technology Select Sector SPDR (XLK) and the Materials Select Sector SPDR (XLB) fell 1.7%, 1.6% and 1.4%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 0.5% to 27.85. A total of 12.93 billion shares were traded on Wednesday, higher than the last 20-session average of 12.63 billion. The S&P 500 posted 16 new 52-week highs and nine new lows; the Nasdaq Composite recorded 34 new highs and 195 new lows.
U.S. Labor Market Data in Focus
Investors are eagerly awaiting an update on the U.S. labor market this Thursday as the jobless claims data for the week ending Aug 3 is set to be released at 8:30 a.m. ET. Given the trend in jobless claims, this report could have an impact on market movements, especially after last week’s disappointing July employment report.
The low jobs figure has already caused a shift in market expectations. Traders are now expecting around a 105-basis point rate cut by the year-end, with the CME FedWatch Tool showing a 72% likelihood of a rate reduction in September.
While markets analyze the labor market data, attention will also shift to statements from U.S. central bank officials. These will be closely monitored leading up to the Jackson Hole Economic Symposium in Wyoming, where Federal Reserve Chair Jerome Powell is set to deliver a key speech.
Investors Watch Earnings Reports
Investors also closely monitored earnings from a batch of companies. Brookfield Asset Management Ltd. (BAM - Free Report) reported second-quarter 2024 adjusted earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.35 per share. The real estate investment company generated total revenues of $1.15 billion, lagging the Zacks Consensus Estimate by 1.29%. Its shares ended 3.9% lower on Wednesday.
ACM Research, Inc. (ACMR - Free Report) reported second-quarter 2024 adjusted earnings of $0.55 per share, beating the Zacks Consensus Estimate of $0.30 per share. The semiconductor equipment company generated total revenues of $202.48 million, outpacing the Zacks Consensus Estimate by 22.88%.
Per a Fed report, consumer credit for June increased by $8.9 billion as opposed to a consensus of $9.7 billion for the period. The number for May was revised down to an increase of $11.3 billion from the previously reported increase of $14 billion.
Per a government report, U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) for the week ended Aug 2, 2024, decreased by 3.7 million barrels from the previous week. The number from the previous week remained unrevised at a decrease of 3.4 million barrels.
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Stock Market News for Aug 8, 2024
Market News
Wall Street closed lower on Wednesday as investors awaited labor market data and digested earnings reports. The Nasdaq, the Dow and the S&P 500 all closed in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.6% or 234.21 points to close at 38,763.45. Notably, 18 components of the 30-stock index ended in negative territory, while 11 ended in positive zone and 1 remained unchanged.
The tech-heavy Nasdaq Composite declined 171.05 points, or 1.1%, to close at 16,195.81.
The S&P 500 tumbled 40.53 points, or 0.8%, to close at 5,199.5. Seven of the 11 broad sectors of the benchmark index closed in the red. The Consumer Discretionary Select Sector SPDR (XLY), the Technology Select Sector SPDR (XLK) and the Materials Select Sector SPDR (XLB) fell 1.7%, 1.6% and 1.4%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 0.5% to 27.85. A total of 12.93 billion shares were traded on Wednesday, higher than the last 20-session average of 12.63 billion. The S&P 500 posted 16 new 52-week highs and nine new lows; the Nasdaq Composite recorded 34 new highs and 195 new lows.
U.S. Labor Market Data in Focus
Investors are eagerly awaiting an update on the U.S. labor market this Thursday as the jobless claims data for the week ending Aug 3 is set to be released at 8:30 a.m. ET. Given the trend in jobless claims, this report could have an impact on market movements, especially after last week’s disappointing July employment report.
The low jobs figure has already caused a shift in market expectations. Traders are now expecting around a 105-basis point rate cut by the year-end, with the CME FedWatch Tool showing a 72% likelihood of a rate reduction in September.
While markets analyze the labor market data, attention will also shift to statements from U.S. central bank officials. These will be closely monitored leading up to the Jackson Hole Economic Symposium in Wyoming, where Federal Reserve Chair Jerome Powell is set to deliver a key speech.
Investors Watch Earnings Reports
Investors also closely monitored earnings from a batch of companies. Brookfield Asset Management Ltd. (BAM - Free Report) reported second-quarter 2024 adjusted earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.35 per share. The real estate investment company generated total revenues of $1.15 billion, lagging the Zacks Consensus Estimate by 1.29%. Its shares ended 3.9% lower on Wednesday.
ACM Research, Inc. (ACMR - Free Report) reported second-quarter 2024 adjusted earnings of $0.55 per share, beating the Zacks Consensus Estimate of $0.30 per share. The semiconductor equipment company generated total revenues of $202.48 million, outpacing the Zacks Consensus Estimate by 22.88%.
Consequently, shares of ACMR surged 16.3%. ACM Research 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
Per a Fed report, consumer credit for June increased by $8.9 billion as opposed to a consensus of $9.7 billion for the period. The number for May was revised down to an increase of $11.3 billion from the previously reported increase of $14 billion.
Per a government report, U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) for the week ended Aug 2, 2024, decreased by 3.7 million barrels from the previous week. The number from the previous week remained unrevised at a decrease of 3.4 million barrels.