US close: Stocks rise as Dow snaps three-day losing streak

By Sharecast News

Sharecast News | 04 Oct, 2023

23:29 10/05/24

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Wall Street ended with a rebound on Wednesday, with major US stock indices ending the day in positive territory following a streak of losses, triggered partially by alleviating bond yields and underwhelming labour market figures.

At the close, the Dow Jones Industrial Average was up 0.39% to close at 33,129.55, halting its three-day decline.

The broader S&P 500 index climbed 0.81% to settle at 4,263.75, while the tech-heavy Nasdaq Composite led the gains, ascending 1.35% to conclude the trading session at 13,236.01.

In the currency space, the dollar was last down 0.02% against sterling and the euro, trading at 82.38p and 95.18 euro cents, respectively.

It also declined 0.06% versus the yen, changing hands at JPY 149.03.

“While most indices in Europe remain in the red, losses have slowed, while buyers have made an appearance on Wall Street this afternoon,” said IG chief market analyst Chris Beauchamp earlier.

“It’s not much of a bounce in risk appetite, but traders will be glad of any temporary respite.”

Beauchamp noted that recession fears were again rising with the US yield curve continuing to un-invert.

“The drop in oil prices is another welcome development this afternoon, though there’s a long way to go before fears of resurgent inflation can be put to bed.”

Hiring slackens, services sector simmers down in September

In economic news, US companies decelerated their hiring endeavours to the slowest pace since January 2021, according to new findings from consultancy firm ADP.

September saw private-sector employers adding just 89,000 new staffers to their ranks, starkly missing the consensus target of 158,000.

The deceleration was influenced mainly by a pronounced reduction of 83,000 positions in large enterprises - those boasting a workforce of over 500.

Divergently, the more minor actors in the business arena demonstrated a modicum of resilience amidst the larger hiring slump.

Small-scale companies with a relatively minimal staffing footprint introduced 95,000 payrolls, while their medium-sized counterparts followed suit, adding 72,000 to the labour market.

Regionally, the West South Central bore the brunt of employment contractions, seeing 74,000 positions dissolved.

A sectoral breakdown revealed a mixed bag, with goods-producing firms generating 8,000 new roles while service-oriented businesses crafted 81,000.

Nonetheless, manufacturing faced a reduction of 12,000 spots, and professional and business services saw a notable decrease, losing 32,000 positions.

“The September print is the lowest since January 2021, but there is zero statistical justification for changing our 175,000 private payroll forecast for Friday,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

“ADP might be right, but that is not knowable in advance, and it could just as easily be very wrong.

“In any event, the biggest identifiable source of upside risk for Friday’s headline print is state and local government education jobs, where the seasonal patterns look extremely favourable.”

Elsewhere, the Institute for Supply Management’s (ISM) services purchasing managers’ index (PMI) nudged down to 53.6 in September from its August reading of 54.5, barely surpassing the consensus prediction of 53.5.

In tandem, S&P Global adjusted its September services PMI minutely downward from 50.2 to 50.1.

Chris Williamson, chief business economist at S&P Global Market Intelligence, noted the recent weakening in consumer-related travel and financial services.

“The economy therefore looks to be moving into the fourth quarter on a weak footing, hinting at slower GDP growth as we head toward the end of the year,” he said.

Cal-Maine dips on disappointing quarter, Intel and Moderna enjoy upswing

In equity markets, egg producer Cal-Maine Foods plunged 7.28% following quarterly results that fell notably short of analysts’ predictions.

The company also disclosed a drop in the average price for a dozen eggs - nosediving to $1.59 from the $2.28 mark in the comparable period a year earlier.

On the upside, chip giant Intel managed gains of 0.67% following the announcement that it intended to launch an initial public offering for its programmable solutions group in the upcoming years.

The decision would follow in last year’s spinoff of Mobileye Global.

Biotechnology company Moderna closed ahead 1.14% after it reported that its dual-action vaccine, designed to combat both Covid-19 and flu, showed a robust immune response in preliminary studies compared to singularly-focussed vaccines.

Reporting by Josh White for Sharecast.com.

Dow Jones - Risers

Microsoft Corp. (MSFT) $318.95 1.78%
Amgen Inc. (AMGN) $265.44 1.70%
Walmart Inc. (WMT) $161.00 1.20%
American Express Co. (AXP) $146.63 1.09%
Visa Inc. (V) $231.19 1.05%
Salesforce.Com Inc. (CRM) $201.87 1.02%
Travelers Company Inc. (TRV) $162.48 0.98%
Nike Inc. (NKE) $95.90 0.84%
Goldman Sachs Group Inc. (GS) $308.60 0.81%
Apple Inc. (AAPL) $173.66 0.73%