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Stocks are falling as traders digest Iranian headlines, new jobs and manufacturing data

Stocks are falling as traders digest Iranian headlines, new jobs and manufacturing data

Vaseline 4 days ago

U.S. stocks slid deeper into the red on Tuesday as investors assessed a new set of economic data and digested headlines that Iran is preparing a missile attack on Israel, sending bond yields lower while pushing up the price of crude oil.

The Dow Jones Industrial Average (^DJI) fell about 0.8%, while the S&P 500 (^GSPC) fell about 1.2% after both major indexes closed at new highs on Monday. The tech-heavy Nasdaq Composite (^IXIC) escalated losses in early trading, falling about 2%.

New jobs and manufacturing data kicked off the new quarter as investors looked for further clues about the future of the Federal Reserve’s easing cycle after Fed Chairman Jerome Powell hinted the central bank is in no rush to cut rates anytime soon .

The number of vacancies surprisingly increased in August, reinforcing the narrative that the labor market may be cooling, but it is not slowing down anytime soon. New data showed there were 8.04 million open jobs at the end of August, up from 7.71 million in July.

Meanwhile, US manufacturing remained flat in September, with the Institute for Supply Management (ISM) revealing that the manufacturing PMI was unchanged at 47.2 last month. Although the numbers remained stable, they were still weak, as a PMI below 50 indicates a contraction in the manufacturing sector.

Read more: What the Fed’s interest rate cut means for bank accounts, CDs, loans and credit cards

The data prepares investors for Friday’s September jobs report, the highlight of a week of closely watched economic data. Investors are looking for confirmation that the US economy is cooling, rather than crumbling.

Meanwhile, a strike by longshoremen began on the East Coast and Gulf Coast, halting the flow of half of America’s shipping. A disruption from the widespread shutdown could cost the economy billions of dollars a day, fuel inflation, jeopardize jobs and resonate in American politics.

Live4 updates

  • Vacancies increase in August and interest rates fall

    The number of vacancies surprisingly increased in August, reinforcing the narrative that the labor market may be cooling, but it is not slowing down anytime soon.

    New data from the Bureau of Labor Statistics released Tuesday showed that there were 8.04 million open jobs at the end of August, up from 7.71 million in July. Economists polled by Bloomberg had expected the report to show job openings rising slightly to 7.67 million in August.

    The July figure was revised higher than the initially reported 7.67 million open jobs.

    The Job Openings and Labor Turnover Survey (JOLTS) also showed that 5.31 million new employees were hired during the month, up from 5.41 million in July. The staff percentage was 3.3% in August, compared to 3.4% in July. Also in Tuesday’s report, the quit rate, a sign of confidence among employees, fell to 1.9%, the lowest level since June 2020.

  • Stocks are off to a slow start in October

    U.S. stocks opened lower on Tuesday to kick off the first trading day of October and the fourth quarter.

    The Dow Jones Industrial Average (^DJI) fell about 0.4%, while the S&P 500 (^GSPC) fell about 0.3% after both major indexes closed at new highs on Monday. The tech-heavy Nasdaq Composite (^IXIC) also moved lower, falling about 0.3%.

  • Stellantis shares continue to fall after Jeep recall due to fire risks

    Jeep maker Stellantis ( STLA ) fell 1% in premarket trading on Tuesday following a recall on more than 150,000 Jeep hybrid SUVs due to a “potential fire risk.”

    The drop in Stellantis shares comes just a day after the stock plunged 12.5% ​​in response to the automaker’s gloomy outlook for its North American business. Stellantis – which also makes Dodge and Ram cars – expects to achieve full-year profit margins of 5.5% to 7%, down from previous double-digit expectations. To cope with deteriorating conditions in the global auto industry, the automaker has planned cost-cutting measures and discounts, Yahoo Finance reporter Pras Subramanian explains in Market Domination.

    Meanwhile, the new recall affects the 2020-2024 Jeep Wrangler 4xe and 2022-2024 Jeep Cherokee 4xe SUVs. The company said it found 13 fires linked to the problem in an internal investigation, but estimates that only 5% of recalled vehicles are at risk of fire.

  • Barclays makes no bones about Apple

    Barclays analyst Tim Long dropped the mic on Apple (AAPL) this morning in a new note, citing weak demand for the iPhone 16.

    Here’s what Long had to say:

    “In early July, a few weeks after the introduction of Apple Intelligence, there was a lot of news about increased iPhone production. Based on our recent checks of supply chain channels, we believe AAPL may have cut approximately 3 million units in a key semiconductor component. in iPhones for the December quarter, which if confirmed would be the first cut in recent history. Our sell-through checks indicate a 15% year-over-year decline for the global iPhone 16 in the first week of sales countries worldwide, indicating weaker demand for IP16 compared to last year. Waiting times in the main regions we tracked were much shorter than last year. While supply chain restrictions on IP15 pro models extended lead times last year, this nevertheless points to potentially weaker-than-expected demand developments, especially in the US and China. All the data above points to weaker demand than previously expected.

    Long reiterated an Underweight rating for Apple (sales equivalent).