Stocks have shown a lack of direction over the course of the trading day on Tuesday, with the major averages bouncing back and forth across the unchanged line following the mixed performance seen in the previous session.
Currently, the major averages are posting modest losses. The Dow is down 129.19 points or 0.3 percent at 44,652.81, the Nasdaq is down 10.52 points or 0.1 percent at 19,393.43 and the S&P 500 is down 11.18 points or 0.2 percent at 6,035.97.
The choppy trading on Wall Street comes as traders take a step back to assess recent strength in the markets, which saw the Nasdaq and the S&P 500 reach new record closing highs during Monday’s session.
A relatively light day on the U.S. economic front may also be keeping traders on the sidelines, although the Labor Department has released a report showing job openings increased by more than expected in the month of October.
The Labor Department said job openings climbed to 7.744 million in October from a downwardly revised 7.372 million in September.
Economists had expected jobless claims to rise to 7.480 million from the 7.443 million originally reported for the previous month.
The economic calendar picks up in the coming days, with the Labor Department due to release its closely watched monthly jobs report on Friday.
Traders are also likely to keep an eye on reports on private sector employment, service sector activity and consumer sentiment as well as remarks by several Federal Reserve officials, including Fed Chair Jerome Powell.
The data and remarks could impact the outlook for interest rates ahead of the Fed’s next monetary policy meeting later this month.
CME Group’s FedWatch Tool is currently indicating a 72.3 percent chance the Fed cuts rates by another 25 basis points but a 27.7 percent chance the central bank leaves rates unchanged.
Sector News
Most of the major sectors are showing only modest moves on the day, contributing to the lackluster performance by the broader markets.
Gold stocks have shown a significant move to the upside, however, resulting in a 2.5 percent surge by the NYSE Arca Gold Bugs Index.
The rally by gold stocks comes amid a modest increase by the price of the precious metal, with gold for February delivery rising $4.10 to $2,662.60 an ounce.
On the other hand, transportation stocks have moved notably lower, dragging the Dow Jones Transportation Average down by 1.5 percent.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan’s Nikkei 225 Index surged by 1.9 percent, while China’s Shanghai Composite Index rose by 0.4 percent.
The major European markets have also moved to the upside on the day. While the U.K.’s FTSE 100 Index is up by 0.7 percent, the German DAX Index is up by 0.3 percent and the French CAC 40 Index is up by 0.1 percent.
In the bond market, treasuries are showing a lack of direction after ending the previous session modestly lower. Currently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 4.192 percent.
Business News
U.S. Stocks Turning In Lackluster Performance Ahead Of Closely Watched Jobs Data
2024-12-03 15:36:56
