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Wall Street closed mixed on Wednesday as investors assessed the July Job Openings and Labor Turnover Survey (JOLTS) report, which intensified discussions about the Federal Reserve interest rates cuts in the September policy meeting. The S&P 500 and the Nasdaq ended the day in negative territory, while the Dow Jones Industrial Average closed higher.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.1% or 38.04 points to close at 40,974.97. Notably, 14 components of the 30-stock index ended in positive territory, while 16 finished in negative zone.
The S&P 500 fell 8.86 points, or 0.2%, to close at 5,520.07. Out of the 11 broad sectors of the benchmark, five ended in negative territory, while six ended in the green zone. The Energy Select Sector SPDR (XLE), the Communication Services Select Sector SPDR (XLC) and the Materials Select Sector SPDR (XLB) fell 1.4%, 0.5% and 0.4%, respectively.
The tech-heavy Nasdaq Composite declined 52.00 points, or 0.3%, to close at 17,084.30.
The fear-gauge CBOE Volatility Index (VIX) was up 2.9% to 21.32. A total of 10.5 billion shares were traded on Wednesday, lower than the last 20-session average of 11 billion.
July JOLTS Report Fuels Fed Interest Rate Debate
The JOLTS report is fueling the debate about Federal Reserve interest rates.
The latest data from JOLTS indicates a slowdown in the U.S. labor market as job openings have decreased to a 3.5-year low of 7.7 million, the lowest level since January 2021. This decline was more than the expected 8.1 million and shows a significant shift in the job market. The ratio of job openings to available workers has decreased from over two jobs per worker in early 2022 to less than 1.1 jobs per worker now.
Despite this decline, layoffs rose slightly in July, remaining relatively steady at 1.8 million, with a rate of 1.1% and total separations increased to 5.4 million of the workforce. On the other hand, hiring increased 3.5% as well.
As the Federal Reserve gets ready for its meeting on Sept. 17 and 18, the mixed labor market data is complicating decisions on interest rates. Even though the slowing job market hints at a shift to a more decisive monetary strategy, the consistent consumer spending and increased hiring could lead the Fed to keep rates unchanged. The August nonfarm payrolls report will provide further insights before the Fed's final decision.
July Trade Deficit Falls Below Expectations
The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced that the trade deficit was $78.8 billion in July, below the consensus estimate of a deficit of $79.1 billion. The metric for June was revised marginally to a deficit of $73 billion from a deficit of $73.1 billion reported earlier.
New Orders for Manufactured Goods Beat Estimates
New orders for manufactured goods for July increased 5%, beating the consensus estimate of 4.8%. June’s data decreased by 3.3%. In July, orders for manufactured durable goods rose 9.8%, while manufactured nondurable goods rose 0.8%.
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Stock Market News for Sep 5, 2024
Market News
Wall Street closed mixed on Wednesday as investors assessed the July Job Openings and Labor Turnover Survey (JOLTS) report, which intensified discussions about the Federal Reserve interest rates cuts in the September policy meeting. The S&P 500 and the Nasdaq ended the day in negative territory, while the Dow Jones Industrial Average closed higher.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.1% or 38.04 points to close at 40,974.97. Notably, 14 components of the 30-stock index ended in positive territory, while 16 finished in negative zone.
The major gainer of the Dow was The Travelers Companies, Inc. (TRV - Free Report) . The stock price of this insurance company rose 1.6%. The Travelers Companies currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 fell 8.86 points, or 0.2%, to close at 5,520.07. Out of the 11 broad sectors of the benchmark, five ended in negative territory, while six ended in the green zone. The Energy Select Sector SPDR (XLE), the Communication Services Select Sector SPDR (XLC) and the Materials Select Sector SPDR (XLB) fell 1.4%, 0.5% and 0.4%, respectively.
The tech-heavy Nasdaq Composite declined 52.00 points, or 0.3%, to close at 17,084.30.
The fear-gauge CBOE Volatility Index (VIX) was up 2.9% to 21.32. A total of 10.5 billion shares were traded on Wednesday, lower than the last 20-session average of 11 billion.
July JOLTS Report Fuels Fed Interest Rate Debate
The JOLTS report is fueling the debate about Federal Reserve interest rates.
The latest data from JOLTS indicates a slowdown in the U.S. labor market as job openings have decreased to a 3.5-year low of 7.7 million, the lowest level since January 2021. This decline was more than the expected 8.1 million and shows a significant shift in the job market. The ratio of job openings to available workers has decreased from over two jobs per worker in early 2022 to less than 1.1 jobs per worker now.
Despite this decline, layoffs rose slightly in July, remaining relatively steady at 1.8 million, with a rate of 1.1% and total separations increased to 5.4 million of the workforce. On the other hand, hiring increased 3.5% as well.
As the Federal Reserve gets ready for its meeting on Sept. 17 and 18, the mixed labor market data is complicating decisions on interest rates. Even though the slowing job market hints at a shift to a more decisive monetary strategy, the consistent consumer spending and increased hiring could lead the Fed to keep rates unchanged. The August nonfarm payrolls report will provide further insights before the Fed's final decision.
July Trade Deficit Falls Below Expectations
The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced that the trade deficit was $78.8 billion in July, below the consensus estimate of a deficit of $79.1 billion. The metric for June was revised marginally to a deficit of $73 billion from a deficit of $73.1 billion reported earlier.
New Orders for Manufactured Goods Beat Estimates
New orders for manufactured goods for July increased 5%, beating the consensus estimate of 4.8%. June’s data decreased by 3.3%. In July, orders for manufactured durable goods rose 9.8%, while manufactured nondurable goods rose 0.8%.