US stocks drifted near all-time highs on Tuesday as investors waited for fresh jobs data and Fedspeak to cement or dent growing hopes for future interest rate cuts.
The S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (^IXIC) hugged the flatline, coming off fresh records for the two gauges. The Dow Jones Industrial Average (^DJI) ticked up about 0.1%.
Investors are bracing for a reading later on JOLTS job openings in October, the first in a wave of key data this week that culminates in Friday’s all-important monthly US payrolls report.
The watch is on for signs of a soft landing for the economy, which will shape views on the path of rates — especially after Federal Reserve officials hinted that they’re still open to a December cut.
Traders are now pricing in about a 73% chance that the Fed lowers rates by a quarter percentage point at its Dec. 18 meeting, compared with 62% a day ago, per the CME FedWatch tool.
Those odds could shift after appearances by Fed policymakers Austan Goolsbee and Adriana Kugler later Tuesday, which set the stage for Fed Chair Jerome Powell’s panel discussion on Wednesday.
On the corporate front, Tesla (TSLA) stock slipped in early trading after shipments of the EV maker’s China-built models fell again, putting sales targets in doubt. In addition, CEO Elon Musk’s $56 billion pay deal was rejected again by a judge.
Meanwhile, shares in US Steel (X) fell about 8% on the heels of President-elect Donald Trump’s promise to “block” its $15 billion takeover by Japan’s Nippon Steel (5401.T, NPSCY). Trump said tax incentives and tariffs will enable the American steel giant to thrive on its own.
Political turmoil in France is also attracting market attention, with the government on the brink of collapse as its faces a parliamentary vote. With Germany also set for a snap election after a government breakdown, Wall Street is keeping a close eye on the two pillars of the EU.
LIVE 4 updates
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Job openings rise more than expected in October
Job openings rose more than expected in October as investors continue dissect the pace of the labor market slowdown seen in the back half of 2024 amid questions over how much further the Federal Reserve will slash interest rates over the next year.
New data from the Bureau of Labor Statistics released Wednesday showed there were 7.74 million jobs open at the end of October, an increase from the 7.37 million seen in September.
September figure was revised lower from the 7.44 million open jobs initially reported. Economists surveyed by Bloomberg had expected Tuesday’s report to show 7.51 million openings in October.
The Job Openings and Labor Turnover Survey (JOLTS) also showed 5.31 million hires were made during the month, down from the 5.58 million hires made during September. The hiring rate fell to 3.3% from the 3.5% seen in September. Also in Tuesday’s report, the quits rate, a sign of confidence among workers, rose to 2.1% from the 1.9% in September.
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Stocks hold near records
US stocks opened mostly higher on Tuesday, hovering near all-time highs.
The S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (^IXIC) each opened close to the flatline, coming off fresh records for the two gauges. The Dow Jones Industrial Average (^DJI) ticked up about 0.1%.
Investors are bracing for a reading later on JOLTS job openings in October, the first in a wave of key data this week that culminates in Friday’s all-important monthly US payrolls report.
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Good morning. Here’s what’s happening today.
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Intel, day two
Lots of analysis on the CEO shake-up at Intel (INTC) has been released, but indeed this is NOT a one-day story.
The path forward for Intel is vitally important for the country — the chip supply chain must be diversified beyond the singular reliance on Taiwan Semiconductor (TSM).
But that path forward for Intel will be brutal, at best.
Here are a couple good points this morning out of EvercoreISI analyst Mark Lipacis:
Some of my initial insight on Intel CEO Pat Gelsinger’s departure down below.
