Home Top Global NewsMarkets Stock Market Reverses Lower As This Line Caps Gains; Jobs Cool; Bed Bath & Beyond Tumbles

Stock Market Reverses Lower As This Line Caps Gains; Jobs Cool; Bed Bath & Beyond Tumbles

by Ozva Admin

The stock market rallied at the open on Wednesday as a weaker-than-expected jobs report helped quell concerns about rising interest rates. But the indices reversed lower. Earnings reports continued to show cautious consumers.




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Indices erased early gains. The Nasdaq Composite, which rose as much as 1%, fell 0.3%. The S&P 500 was up 0.3% and the Dow Jones Industrial Average was also down 0.3% around 11 am ET.

All three remain below their 50-day moving averages after breaching those lines on Tuesday.

The main actions as Apple (AAPL), Microsoft (MSFT), amazon.com (AMZN) Y Alphabet (GOOGLE) are below their 50-day lines in mediocre trading. Facebook’s father Metaplatforms (GOAL) has bucked the falling tide, jumping 5% in a test on its 50-day line.

Volume fell on the Nasdaq and was flat on the New York Stock Exchange, compared to the same time Tuesday.

Western intermediate crude fell 1.8% to $89.89 a barrel, on concerns about weaker global demand. Oil prices have been range bound since July.

The SPDR Energy Select Sector (XLE) is the worst-performing sector in the S&P of the stock market today, down 1.2%.

The ADP employment estimate for August reported 132,000 job increases, well below the Econoday Forecast of 225,000. It was also much lower than July’s revised increase of 268,000, indicating some cooling in the tight labor market.

The employment situation is one of the economic factors that the Fed is watching to gauge its monetary policy. A weaker employment situation could act as a brake on rising interest rates.

The ADP release is a precursor to Friday’s monthly nonfarm payroll report, when economists look for 293,000 new jobs.

Current summary of the US stock market

Index Symbol Price gain loss % Change
dow jones (0DJIA) 31696.24 -94.63 -0.30
S&P 500 (0S&P5) 3975.35 -10.81 -0.27
nasdaq (0NDQC ) 11845.91 -37.23 -0.31
Russell 2000 (IWM) 183.62 -1.00 -0.54
IBD 50 (FFTY) 28.23 -0.16 -0.56
Last Updated: 11:10 AM ET 08/31/2022

The yield on the 10-year Treasury note rose after the report and is now trading at 3.11%.

Stock market hit by cautious earnings

hp (HPQ) shares sold off 3.6% on high volume, hitting the lowest point since October 2021.

On Tuesday night, the personal computer and printer maker met its earnings expectations, but Lost Sales Estimates for Your Fiscal Third Quarter. HP’s guidance for the current quarter was much lower than expected.

Chief Executive Enrique Lores said the company faces “short-term market headwinds,” including a 20% drop in revenue per consumer PC.

More signs of weakening consumer demand appeared in Tough‘s (CHWY) Quarterly report completed in July. The online pet products seller slightly missed sales forecasts and cut its outlook for the current quarterwarning that pet owners are cutting back amid economic uncertainty.

The stock fell 6% in heavy trading.

It was a much brighter prospect for designer brand (DBI).

The clothing chain beat estimates for the July quarter and raised its guidance for the full year. The stock bounced nearly 4% and is finding support around its 21 day exponential moving average.

Bed Bath & Beyond discussed strategic plans

Bed bath and beyond (bbby) plunged 23% as the troubled retailer continued its wild ride. the company alone announced a new strategic plan that includes closing some 150 stores, cutting 20% ​​of its corporate and supply chain jobs, and reducing capital spending from $400 million to $250 million.

Executives also said the company has secured new financing, made management changes and plans to revamp its buybuyBaby business.

More importantly for investors, 12 million new shares may be offered in the coming months.

crowdstrike (CRWD) erased opening gains and was down 1.7%. The cyber security company exceed profit and sales expectations amid heavy activity. The action remains above its 200 day moving average while testing the resistance around that line.

The EII 50 Innovative ETF (FFTY) fell 0.6%. CF Industries (HR) triggered a sell signal after falling more than 8% below its buying point of 113.58.

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