Stock market today: US stocks seesaw with jobs data front of mind
07/02/2024 21:25
Investors cautiously weighed the rate-cut odds ahead of crucial June jobs data, with Powell comments on deck.
US stocks were mixed on Tuesday as investors cautiously weighed rate-cut odds ahead of crucial jobs data and eyed what higher chances of a Donald Trump win could mean for markets.
The Dow Jones Industrial Average (^DJI) andd the S&P 500 (^GSPC) hovered near the flat line. Meanwhile the tech-filled Nasdaq Composite (^IXIC) edged slightly into positive territory.
Stocks are showing signs of fatigue as the market plays safe in a trading week dominated by Friday's crucial June jobs report and shortened for the July 4 holiday. The market came of its lows just after 10 a.m. ET when fresh data on job openings showed the labor market remains resilient despite concerns over recent softer data.
New data from the Bureau of Labor Statistics released Tuesday showed there were 8.14 million jobs open at the end of May, an increase from the 7.92 million job openings in April.
Jerome Powell is due to speak at an ECB meeting on Tuesday, and investors will listen closely for the Federal Reserve chair's view of progress on inflation and the state of the labor market. Also on deck is a reading on weekly job openings, which will similarly feed into expectations for interest-rate cuts.
Meanwhile, political risk is preying on minds, as Wall Street assesses what a Trump election win could mean for markets as speculation grows that Biden's future as the Democratic Party's standard bearer. The 10-year Treasury yield (^TNX) nudged lower to 4.43% on Tuesday after one of its largest single day gains of the year on Monday.
On the corporate front, Tesla (TSLA) delivered more vehicles than expected in the second quarter, sending shares up about 5% in early trading.
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Job openings unexpectedly increase in May
Job openings picked up in May, surprising Wall Street which had been watching for further signs of cooling in the labor market
New data from the Bureau of Labor Statistics released Tuesday showed there were 8.14 million jobs open at the end of May, an increase from the 7.92 million job openings in April.
March's figure was revised lower from the 8. 06 million open jobs initially reported. Economists surveyed by Bloomberg had expected the report to show 7.95 million openings in May.
The Job Openings and Labor Turnover Survey (JOLTS) also showed 5.8 million hires were made during the month, a slight uptick from April.
The hiring rate held at 3.6%, unchanged from April. Also in Tuesday's report, the quits rate, a sign of confidence among workers, held steady at 2.2%.
Tesla shares rise after deliveries beat
Tesla (TSLA) stock jumped roughly 5% in early trading Tuesday after the EV giant reported quarterly vehicle deliveries that beat Wall Street expectations.
The EV giant delivered 443,956 vehicles during the second quarter, versus an analyst consensus estimate of 439,302 deliveries, per Bloomberg data.
“In the second quarter, we produced approximately 411,000 vehicles and delivered approximately 444,000 vehicles,” read a company statement. Broken down by car type, Tesla said it delivered 422,405 models 3/Y, and 21,551 other models.
That second quarter total delivery figure is higher than the 386,810 vehicles globally delivered in the first quarter but lower than the approximate 466,140 delivered a year ago.
Stocks slip at the open
US stocks retreated on Tuesday as investors cautiously weighed rate-cut odds ahead of crucial jobs data and eyed what higher chances of a Donald Trump win could mean for markets.
The Dow Jones Industrial Average (^DJI) slipped 0.1% while the S&P 500 (^GSPC) nearly 0.2%. The tech-filled Nasdaq Composite (^IXIC) slid more than 0.2%.
Meanwhile, political risk is preying on minds, as Wall Street assesses what a Trump election win could mean for markets as speculation grows that Biden's future as the Democratic Party's standard bearer. The 10-year Treasury yield (^TNX) nudged lower to 4.43% on Tuesday after one of its largest single day gains of the year on Monday.
Roaring Kitty's likely investment thesis on Chewy...
Talk about a well-timed note from EvercoreISI tech analyst Mark Mahaney.
Mahaney nicely breaks down the investment thesis in Chewy (CHWY) the day after Keith 'Roaring Kitty' Gill disclosed a 6.6% stake in the company. He also shared some helpful survey analysis below.
Says Mahaney:
"We continue to view Chewy as a solid business that is impacted by broader industry weakness, but still holds many investment positives – consistently rising spend/loyalty per Chewy customer, budding growth opportunities in sponsored ads, international expansion, and vertical expansion (e.g. vet care clinics), and the potential for ongoing gross and EBITDA margin expansion."
Mahaney is sticking with an in-line rating for now, citing competitive pressures, valuation and an unproven push into Canada.
Chewy is a top of mind destination for pet products, according to a new survey from EvercoreISI. (EvercoreISI)
