U.S. Indexes Waver Awaiting Manufacturing Surveys and Labor Market Updates

Barry Adams
01 Oct, 2024
New York City

Wall Street indexes edged lower after finishing higher in the previous month and third quarter. 

The S&P 500 index decreased 0.9% and the Nasdaq Composite declined 1.2% as investors awaited the release of manufacturing surveys. 

Major averages on Monday edged higher after Fed Chair Jerome Powell signaled two possible rate cuts in the year if the economy performs as expected. 

However, Powell cautioned that the policy committee's decision is data-dependent and "not on any preset course."

The Federal Reserve's super-sized rate cut of 50 basis points last month bolstered market sentiment and pushed stock market indexes to new highs. 

Investors now shifted their attention to the upcoming nonfarm payroll update on Friday and the JOLT report later today. 

Stock traders were also monitoring the first strike in fifty years by members of the International Longshoremen's Association on 14 ports on the East and Gulf Coasts. 

About 45,000 members decided to strike after wage negotiations broke down with the U.S. Maritime Alliance employers group. 

Consumers are likely to feel the impact of the strike if it drags on longer than a week, which could invite an intervention by President Joe Biden, asking workers to return to work and look for a settlement over the next eighty days. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.9% to 5,712.70, the Nasdaq Composite fell 1.2% to 17,990.69, and the Russell 2000 index rose 0.7% to 2,216.23. 

The yield on 2-year Treasury notes edged higher to 3.64%, 10-year Treasury notes inched down to 3.74%, and 30-year Treasury bonds inched lower to 4.12%.

WTI crude oil increased $0.57 to $68.76 a barrel, and natural gas prices edged up 3 cents to $2.88 a thermal unit.

Gold fell by $29.76 to $2,662.92 an ounce, and silver increased by $0.61 to $31.66.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.13.

 

U.S. Stock Movers

Charles Schwab Corporation declined 1.6% to $63.75, and the company announced the retirement of chief executive Walt Bettinger at the end of the year. 

Charles Schwab President Rick Wurster is slated to assume the leadership role at the start of the new year. 

Stellantis NV declined 1.9% to $13.78 and extended its loss for the second day in a row after the automaker plans to halt production of the electric Fiat 500 until the end of November. 

McCormick & Company increased 0.7% to $82.84 after the spice maker reported better-than-expected revenue and earnings. 

The spice and flavoring company reported net sales in the edge to $1.67 billion from $1.68 billion, net income increased to $223.1 million from $170.1 million, and diluted earnings per share to 83 cents from 63 cents.

The company reaffirmed its sales and operating profit outlook, and estimated adjusted earnings per share between $2.85 and $2.90.