U.S. Stocks On Hold Ahead of Two Critical Job Reports

Barry Adams
05 Mar, 2024
New York City

Stocks in early trading meandered, and investors took a wait-and-see approach ahead of the release of non-farm payrolls and JOLT reports. 

The S&P 500 index decreased 0.2% and the Nasdaq Composite eased 0.3%, extending losses in the previous session.

Investors debated the future direction of interest rates amid moderating but tight labor market conditions and better-than-expected earnings despite multiple rate hikes over the last eighteen months. 

Market participants have generally bid up high-growth tech stocks linked to the expected boom in artificial intelligence applications across the economy.

Energy stocks were also in focus after crude oil prices traded volatile because of the elevated tensions in the Middle East and rising Houthi rebel activities in the Red Sea. 

Moreover, drought conditions in Panama have slowed down the passage of container ships from Asia to the U.S. East Coast, as the canal operator has restricted the flow of daily vessels by half. 

 

U.S. Indexes and Yields

The S&P 500 index decreased 0.2% to 5,123.76, and the Nasdaq Composite decreased 0.4% to 16,156.63. 

The yield on 2-year Treasury notes increased to 4.58%, 10-year Treasury notes inched down to 4.17%, and 30-year Treasury bonds edged down to 4.31%.

WTI crude oil decreased $0.79 to $77.75 a barrel, and natural gas prices decreased 2 cents to $1.89 a thermal unit.

Gold increased by $11.26 to $2,126.22 an ounce, and silver rose 14 cents to $24.02. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.88.

 

U.S. Stock Movers

Apple decreased 2.2% to $171.25 after a research report from Counter Point estimated the company's iPhone sales in China dropped as much as 24% in the first six weeks of 2024, facing tougher competition from Huawei. 

Target Corp. soared 8.2% to $162.99 after the retailer reported better-than-expected holiday-quarter sales and earnings. 

Revenue in the fiscal fourth quarter ending on February 3 rose to $31.9 billion from $31.4 billion, net income soared 58% to $1.38 billion from $0.87 billion, and diluted earnings per share advanced to $2.98 from $1.89 a year ago. 

Operating margin in the quarter improved to 5.8% from 3.7% a year ago after consumers returned to buy higher-margin items like apparel and beauty products. 

For the first quarter of 2024, the company expects comparable sales to fall between 3% and 5%, and first quarter GAAP and adjusted EPS are both expected to range from $1.70 to $2.10. 

For the full year, the company expects a modest increase in comparable sales in a range from flat to 2%, and GAAP EPS and adjusted EPS are both expected to range from $8.60 to $9.60.

GitLab plunged 23.8% to $56.75 after the database developer estimated weaker-than-expected sales in the current year. 

AMD decreased 1.9% to $201.55 after a Bloomberg News report suggested that the company's sales in China hit the U.S. regulatory hurdles that will prevent the company from selling advanced semiconductors to process artificial intelligence applications.