Investors Shift Focus to Earnings and Treasury Yields Edged Lower

Barry Adams
04 Oct, 2023
New York City

For two months  direction of interest rates have been determining direction of stocks and that trends was in full-display again today. 

The S&P 500 index and the Nasdaq Composite struggled to advance and yields on Treasury notes and bonds edged lower from 2007-highs reached in the previous session. 

Private sector payrolls data released by the ADP suggested weaker-than-expected jobs gain of 89,000 in September. 

The increase in payrolls fell sharply from 180,000 in July. 

The ADP data series is volatile and the monthly estimates are subject to significant revisions, but the gains fell short of expectations of an increase of as much 155,000 set by some economists surveyed by Ticker.com.

Investors shifted attention to upcoming earnings season and banks were in focus. 

Investors are looking get more clues about the impact of higher interest rates and new capital requirements at banks of all sizes.  

 

Manufactured Goods Orders Increased In August 

New orders for manufactured goods in August, up five of the last six months, increased $6.7 billion or 1.2% to $586.1 billion, the U.S. Census Bureau reported Wednesday. 

New orders rose at a slower pace after rising 2.1% in July. 

Durable goods orders increase in August was revised lower to 0.1% from the previous estimate of an increase of 0.2%. 

Excluding transportation, new orders increased 1.4% and excluding volatile defense orders rose 0.8%. 

 

U.S. Indexes & Yields 

The S&P 500 index edged down 0.02% to 4,228.33 and the Nasdaq Composite rose 0.3% to 13,093.69. 

The yield on 2-year Treasury notes increased to 5.12%, 10-year Treasury notes inched lower to 4.77% and 30-year Treasury bonds edged down to 4.89%. 

Crude oil decreased $2.48 to $86.42 a barrel and natural gas prices increased 6 cents to $3.11 a thermal unit. 

The dollar index edged lower to 106.91, the level last seen in November 2022 and extended gains from the low of 99.85 on July 13, 2023.  

 

U.S. Stock Movers 

Cal-Maine Foods Inc plunged 7.7% to $44.05 after the egg producer reported sharply lower sales in its latest quarter after prices declined. 

The company also reported earnings of 2 cents per share, lower than the estimate of as high as 30 cents set by some analysts. 

Intel Corporation declined 0.4% to $35.57 after the  advanced chipmaker said it plans to operate its programmable chip division as a standalone unit in preparation of a public offering in the next two years.