US stocks recovered from earlier losses on Tuesday as investors digested new data on job openings and absorbed a fresh wave of earnings ahead of Alphabet’s (GOOG, GOOGL) results.
The Dow Jones Industrial Average (^DJI) and benchmark S&P 500 (^GSPC) each hugged the flatline in early trading after initially opening the day lower. The tech-heavy Nasdaq Composite (^IXIC) also recouped losses to rise around 0.1%.
New data from the Bureau of Labor Statistics released Tuesday showed there were 7.44 million jobs open at the end of September, a decrease from the 7.86 million seen in August. August’s figure was revised lower from the 8.04 million open jobs initially reported.
Investors have been closely watching for signs of further cooling in the labor market ahead of the Federal Reserve’s next interest rate decision on Nov. 7. Updates on inflation and the jobs market later in the week will also be key in determining Fed policy.
In the meantime, earnings are at the forefront of what’s shaping up to be a crucial week for markets.
Alphabet’s results, due after the bell, will be closely watched as a harbinger of whether Big Tech’s huge AI investments are delivering a payoff. The Google parent is the first of five “Magnificent Seven” megacaps due to report over the next three days, with the outcome seen as driving the direction of stocks to kick off November.
McDonald’s (MCD) posted a third quarter revenue beat, thanks to a rise in US sales in the face of worries about a recent E.coli outbreak. The busiest week of earnings season is revving up, with PayPal (PYPL) and Pfizer (PFE) reporting results before the bell. AMD (AMD), Chipotle (CMG), and Visa (V) will report alongside Alphabet after the market close.
Meanwhile, the US presidential election is injecting some uncertainty into markets in the final fierce days of campaigning. Trump Media & Technology Group stock (DJT) ticked higher following after a brief trading halt earlier in the session. Shares are set to build on Monday’s 21% gain following Donald Trump’s weekend rally in New York.
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29 mins ago
Job openings fall more than expected in September
Job openings fell more than expected in September. The data comes as investors closely watch for signs of further cooling in the labor market ahead of the Federal Reserve’s next interest rate decision on Nov. 7.
New data from the Bureau of Labor Statistics released Tuesday showed there were 7.44 million jobs open at the end of September, a decrease from the 7.86 million seen in August.
August’s figure was revised lower from the 8.04 million open jobs initially reported. Economists surveyed by Bloomberg had expected the report to show 8 million openings in September.
Also in Tuesday’s data, the quits rate a sign of confidence among workers, fell to 1.9% in September down from the revised 2% seen in August. Meanwhile, the Job Openings and Labor Turnover Survey (JOLTS) showed 5.55 million hires were made during the month, up from 5..43 million seen in August. The hiring rate hit rose slightly to 3.5% in September, up from the 3.4% seen in August.
37 mins ago
Ford stock drops 7% after profit forecast disappoints
Ford Motor (F) stock dropped over 9% early Tuesday after the automaker lowered its full-year profit forecast the day before, citing high warranty costs and supplier disruptions.
Ford brought down its full-year profit forecast, with the automaker now seeing 2024 adjusted EBIT “to be about $10 billion,” the lower end of its previous projection of $10 billion to $12 billion.
The automaker said “supplier disruptions,” in part due to the affect of hurricanes on the southeastern US, impacted sales of its Ford Pro and Ford Blue vehicles.
Additionally, “costs, especially warranty, has held back our earnings power, but as we bend that curve, there is significant financial upside for investors,” Ford CEO Jim Farley added on the analyst conference call.
Meanwhile, rival General Motors (GM) stock is up nearly 8% from last week as the company raised its profit forecast for the third time this year during its third quarter earnings report last week.
Trump Media & Technology Group stock (DJT) was briefly halted in early trading on Tuesday after shares extended their five-week surge, rising around 10% shortly after the opening bell. The stock moves come as investors bet on improved chances that Donald Trump will win the November presidential election.
Shares closed up more than 21% on Monday, following the former president and Republican nominee’s highly criticized rally at Manhattan’s Madison Square Garden (MSG) over the weekend. At current levels, the stock is trading at its highest level since May, with shares up about 270% from their September lows.
Trump maintains a roughly 60% interest in DJT. At current levels of above $52 a share, Trump Media boasts a market cap of about $10.3 billion, giving the former president a stake worth around $6.2 billion.
US stocks opened lower on Tuesday as investors digested a fresh crop of earnings and awaited results from Alphabet (GOOG, GOOGL), due after the bell.
The Dow Jones Industrial Average (^DJI) fell about 0.3%, coming off a sharp gain as all the gauges closed higher. The benchmark S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) also each dropped around 0.3% at the market open.
Today at 1:26 PM UTC
Home prices record slowest annual gain since 2023.
US home prices hit another record high in August, but the pace of price increases is easing.
“Home price growth is beginning to show signs of strain, recording the slowest annual gain since mortgage rates peaked in 2023,” Brian D. Luke, S&P’s head of commodities, real & digital assets, said in a press release.
Prices rose 0.3% over the prior month in August on a seasonally adjusted basis. This marked the 15th consecutive monthly increase and an all-time high for the index.
The index tracking home prices in the 20 largest metropolitan areas gained 0.4% in August from July, higher than Bloomberg consensus estimates 0.2% monthly increase. Meanwhile, the 20-city index jumped 5.2% compared to last August.
“As students went back to school, home price shoppers appeared less willing to push the index higher than in the summer months. Prices continue to decelerate for the past six months, pushing appreciation rates below their long-run average of 4.8%,” Luke added.
Today at 12:36 PM UTC
Earnings roundup: McDonald’s, BP, PayPal stocks fall while Pfizer and HSBC rise on Q3 results
Another batch of companies reported earnings Tuesday morning. Here’s a quick rundown:
Here’s a look at how the companies performed this morning relative to Wall Street’s expectations, using Bloomberg consensus estimates:
Novartis: Adjusted basic earnings per share of $2.06 vs. $1.94 expected, revenue of $12.82 billion vs. $12.68 billion expected
McDonald’s: Adjusted diluted earnings per share of $3.23 vs. $3.20 expected, revenue of $6.87 billion vs. $6.81 billion expected
HSBC: Adjusted diluted earnings per share of $0.34 vs. $0.30 expected, net revenue of $17.21 billion vs. $16.14 billion expected
Pfizer: Diluted earnings per share of $1.06 vs. $0.64 expected, revenue of $17.7 billion vs. $15.08 billion expected
BP: Adjusted diluted earnings per share of $0.14 vs. $0.13 expected, revenue of $47.25 billion vs. $46.16 billion expected
PayPal: Adjusted diluted earnings per share of $1.20 vs. $1.07 expected, revenue of $7.85 billion vs. $7.89 billion expected
Google (GOOG) parent Alphabet, AI chipmaker Advanced Micro Devices (AMD), Visa (V), and Chipotle (CMG) are among the round of companies set to report earnings after the bell.
