:max_bytes(150000):strip_icc()/GettyImages-1702834879-178e1d51eb564e8f8458dee466374df1.jpg "Dow, S&P 500 Fall to 4-Month Lows as Bond Yields Rise on Jobs Data")
S&P 500 Gains and Losses Today
October 03, 2023 05:13 PM EDT
Here are the S&P 500 stocks that gained and lost the most today.
Investopedia
Dow Plunges More Than 400 Points, Turning Negative For the Year
October 03, 2023 04:44 PM EDT
The Dow Jones Industrial Average tumbled 430 points, or 1.3%, plunging the index into the red for the year, as stronger-than-expected job data dashed investors’ hopes for interest rate cuts next year. With Tuesday’s losses, the index is down about 0.4% year-to-date.
Intel (INTC) shares moved higher by 0.7% after KeyBanc Capital Markets upgraded its revenue forecast for the chipmaker, citing improved product demand.
Boeing (BA) shares gained 0.6% on reports that United Airlines (UAL) would order 50 of its 787 Dreamliners in a major bet on air travel demand. The company also set a goal of producing a record 57 737s per month by July 2025, another sign of optimism around travel demand.
Walgreens Boots Alliance (WBA) shares are on a three-session winning streak after rosing 0.6% today amid reports it may soon have a new CEO.
Shares of Goldman Sachs (GS) fell nearly 3.9% and American Express (AXP) dropped 3%, making them the index’s worst performers today. The financial sector dropped 1.7% in the session, underperforming the broader market as rising rates force banks to tighten lending standards. JPMorgan Chase (JPM) shares dipped 0.7%.
Microsoft (MSFT) shares dropped 2.6% as CEO Satya Nadella testified in the FTC’s antitrust case against Google-parent Alphabet (GOOGL). Nadella warned that Google’s search monopoly gave it an advantage in the race to dominate the artificial intelligence industry.
Apple (AAPL) shares declined 0.8% after it requested that apps in its China app store provide proof of a government license.
-Terry Lane
Amazon Sinks as Details of FTC Suit Emerge
October 03, 2023 03:28 PM EDT
Shares of Amazon (AMZN) sank 4% Tuesday as reports outlined the company’s use of a secret algorithm that’s at the center of the Federal Trade Commission’s antitrust case against the e-commerce giant.
The algorithm, nicknamed “Project Nessie,” was used until 2019 and essentially forced Amazon’s competitors into a game of e-commerce chicken. The system was designed to boost revenue and pad margins by testing how much Amazon could raise prices before competitors stopped following, according to a Wall Street Journal report.
Project Nessie is one of the Federal Trade Commission’s core complaints in its case against the company, which it alleges wields its e-commerce monopoly to raise prices for consumers and force sellers into using its services.
The Wall Street Journal cited one person familiar with Project Nessie as saying the pricing system earned Amazon at least $1 billion in revenue. The FTC’s complaint contains a redacted estimate of the “excess profit” the algorithm generated for Amazon.
Midday Market Movers
October 03, 2023 02:00 PM EDT
Apellis Pharmaceuticals Inc. (APLS): Shares of the drug developer rose more than 5% after its Empaveli Injector was approved by the FDA as an on-body device for the medicinal self-administration by patients with paroxysmal nocturnal hemoglobinuria, a rare blood disorder.
Utilities: Utilities stocks rebounded slightly from yesterday’s major sell-off that saw the S&P 500 Utilities Sector Index plunge nearly 5%. NiSource Inc. (NI) and FirstEnergy Corp. (FE), both up about 3%, were the S&P 500’s best performers Tuesday afternoon.
McCormick & Co. Inc. (MKC): Shares of the spice and food seasoning company fell about 9% after its third-quarter sales fell short of analysts’ estimates. The stock was on track for its lowest close since markets plunged in March 2020.
Viatris Inc. (VTRS): Shares of the pharmaceutical company fell 6% after the U.S. Patent and Trademark Office denied its legal challenge to Novo Nordisk’s patents behind its blockbuster weight loss drugs Ozempic and Wegovy.
Delta Air Lines Inc. (DAL): The airline’s shares fell 3% after it became the fourth major airline to disclose it has found unauthorized parts in some of its jets’ engines. American Airlines (AAL), United Airlines (UAL), and Southwest Airlines (LUV) had previously announced similar discoveries.
Breaking Down the Jobs Report that Jolted Markets
October 03, 2023 01:16 PM EDT
The number of job openings rose for the first time in four months, jumping to 9.6 million in August from 8.9 million in July, reversing the previous two months of declines, the Bureau of Labor Statistics said Tuesday.
While job openings have been on a downward trend since peaking at more than 12 million in March 2022, they’ve stayed well above pre-pandemic levels as the chart below shows.
The jump in job openings was unexpected and mostly due to more than 500,000 job openings being added in the professional and business services sector.
That may indicate this is more of a bump in the road to a cooling labor market than a reversal of the trend, Nick Bunker, head of economic research at the hiring lab at job hunting website Indeed, in a commentary.
“Yes, the job market is still retaining a lot of heat, but it hasn’t gone back on the boil,” Bunker said.
-Diccon Hyatt
Dow Turns Negative For the Year
October 03, 2023 12:07 PM EDT
The Dow Jones Industrial Average fell more than 350 points, or 1.1%, Tuesday morning, taking the index into negative territory for the year.
The index finished 2022 at 33,147.25 and traded around 33,072 midday Tuesday.
The S&P 500 and Nasdaq fell further Tuesday but were faring slightly better for the year. The S&P was up more than 10% from the beginning of the year, while the Nasdaq was 25% higher than its 2022 close.
30-Year Treasury Yield Tops 4.9%
October 03, 2023 11:28 AM EDT
The yield on the 30-year Treasury bond climbed Tuesday morning to more than 4.9%, a 16-year high.
10-year yields, already their highest since 2007, rose even further to 4.77%.
Yields jumped at exactly 10 a.m. when the Bureau of Labor Statistics released its monthly Job Openings and Labor Turnover Survey (JOLTS) report, which showed job openings unexpectedly rose 7% to more than 9.6 million in August. Meanwhile, the number of separations—including quits and layoffs—was nearly unchanged.
Markets and the Federal Reserve are looking for signs of a modestly weakening labor market, which officials expect will help ease price pressures and bring inflation back to the central bank’s 2% goal.
Passive Funds Come Out on Top in Fight for Assets
October 03, 2023 10:45 AM EDT
Assets in passively managed funds could surpass those in active funds within a year, according to research from Cerulli Associates.
As of the end of August, actively managed mutual funds and ETFs held $12.79 trillion in assets while passive funds held $12.33 trillion. The $462 billion difference could be made up in less than a year if flow trends persist.
Active mutual funds and ETFs saw outflows of $239.5 billion in the first 8 months of the year. Over the same period, passive fund inflows totaled $275.9 billion.
Yet active management has proved a better strategy in 2023 than it has in years. In the 12 months through June 2023, about 57% of active funds survived and outperformed their average index peer. That’s an impressive feat considering many of the first half’s top-performing stocks—Nvidia (NVDA), Amazon (AMZN), and Microsoft (MSFT), for example—are also major index components.
Stocks Making the Biggest Moves Premarket
October 03, 2023 09:25 AM EDT
Gains:
- POINT BioPharma Global Inc. (PNT): Shares of the biopharmaceutical company jumped more than 84% after drug giant Eli Lilly said it would buy the company and the cancer treatments it is developing for $12.50 a share, or about $1.4 billion.
- Warby Parker Inc. (WRBY): The online eyewear retailer’s shares rose 5% after an upgrade from analysts at Evercore ISI, who cited margin improvement and revenue growth.
- HP Inc. (HPQ): Shares of the PC maker gained more than 2% after Bank of America upgraded the stock to buy from underperform, citing improving fundamentals.
Losses:
- Airbnb Inc. (ABNB): Shares of the vacation rental platform fell more than 3% after Keybanc downgraded the stock, citing the easing of travel demand after a post-pandemic boom.
- McCormick & Co. (MKC): Shares of the food seasoning maker fell 5% after reporting third-quarter revenue below Wall Street’s expectations amid a sputtering economic recovery in China.
5 Things to Know Before Markets Open
October 03, 2023 08:55 AM EDT
Here’s what investors need to know to start their day:
- Meta Platforms (META) is reportedly planning to start charging European users a monthly subscription fee for ad-free versions of apps like Facebook and Instagram.
- Ford (F) and General Motors (GM) laid off 500 workers as a result of the ongoing United Auto Workers (UAW) strike, adding to the more than 2,000 workers laid off by the two companies last month.
- Tesla (TSLA) shares dipped 1% in premarket trading after reporting third-quarter deliveries on Monday that came in below expectations.
- Shares of Kellanova (K) rebounded 1% in premarket trading after its shares and those of its cereal brands spin-off WK Kellogg (KLG) tumbled yesterday in their first day of trading as separate entities.
- The Job Openings and Labor Turnover Survey (JOLTS) for August is projected to show job openings staying steady at 8.8 million in August when that data is released at 10 a.m. ET.
-Terry Lane
Stock Futures Slump Amid Bond Market Jitters
October 03, 2023 08:27 AM EDT
Futures contracts connected to the Dow Jones Industrial Average were down 0.4% in premarket trading.
S&P 500 futures fell 0.5%.
Nasdaq 100 contracts slumped 0.6%.
