Major indexes were slightly higher in midday trading Wednesday as investors digested fresh labor market data.
The S&P 500 was up 0.1% in recent trading, while the Dow Jones Industrial Average and Nasdaq Composite were fractionally higher. Stocks fell sharply on Tuesday after surprisingly strong economic data sparked renewed concerns about where interest rates are headed.
The ADP monthly private sector employment report this morning showed that fewer jobs were added in December than economists had anticipated, while weekly jobless claims came in lower than expected. The data are precursors to Friday’s highly anticipated release of the December jobs report. Market participants are watching the data closely for information that could affect the Federal Reserve’s decision-making on interest rates.
Data released Tuesday showed that there were far more job openings in November than economists had expected. That report, along with a hotter-than-expected reading on services sector activity, underscored the continued strength of the U.S. economy and raised concerns about whether the Fed will cut its key rate again.
The yield on 10-year Treasurys, which is correlated with rate expectations, was down slightly at 4.68% in recent trading after rising to 4.73% earlier in the day and hitting its highest point since April.
Large-cap technology stocks, which led Tuesday’s selloff, were mostly higher today. Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN) and Tesla (TSLA) were gaining ground, while Meta Platforms (META) fell about 1%.
Software maker Palantir (PLTR), which was the S&P 500’s top performer last year, was down 3% this morning, adding to yesterday’s 8% decline. The stock is down 20% from its all-time high set on Dec. 24.
Shares of MicroStrategy (MSTR), one of the world’s largest holders of bitcoin, and crypto exchange Coinbase Global (COIN) were down 3% and 2%, respectively, as the digital currency continued to slump.
Bitcoin was at $94,600, down from an overnight high of around $97,000 and well below its Monday high of near $103,000.
Gold futures were up 0.7% at $2,685 an ounce, while WTI crude oil futures were down more than 1%.
ExxonMobil Says Lower Oil Prices Will Hit Q4 Results
24 minutes ago
ExxonMobil (XOM) said it expects to take an up to a $900 million hit to its upstream earnings in the fourth quarter versus the previous three months amid falling oil prices.
Lower liquids prices are set to bring down its upstream earnings by between $500 million to $900 million in the fourth quarter of 2024 compared with the third quarter, the oil giant said in a filing with the Securities and Exchange Commission (SEC).
The forecasted earnings hit follows the oil company’s announcement last month that it is doubling down on its commitment to pumping more oil and gas. The long-term plan focuses on taking advantage of its nearly $60 billion purchase of Pioneer Natural Resources last year, it said.
ExxonMobil’s forecast is also happening at a time when demand for oil is soft and there is an oversupply of the commodity. Last month, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) announced they will keep voluntary production cuts of 2.2 million barrels per day (B/D) in place until the end of March.
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ExxonMobil shares were down 1.4% in recent trading. The stock has fallen 12% over the past three months.
Instacart Rises on News of S&P MidCap 400 Inclusion
1 hr 22 min ago
Shares of Instacart rose Wednesday on the news that the food-delivery stock will join a new index.
Instacart’s stock was recently up about 5%. The rise followed the announcement late yesterday that the company, also known as Maplebear (CART), will join the S&P MidCap 400 index starting with next Tuesday’s session, replacing Enovis (ENOV).
Shares of Instacart are have nearly doubled over the past 12 months.
Instacart separately said Wednesday that it would partner with Ulta Beauty (ULTA) to deliver the latter company’s beauty products nationwide.
Ulta’s shares were recently down more than 3%; the company recently said its CEO would retire.
Enovis will move to the SmallCap 600 index, replacing Arch Resources (ARCH), which is soon expected to be acquired by Consol Energy (CEIX) and create Core Natural Resources.
Shares of Enovis were up more than 1% in morning trading.
Palantir Levels to Watch as Stock Continues Sliding
2 hr 23 min ago
Shares in Palantir Technologies (PLTR) were down again Wednesday after falling sharply yesterday, as the stock continues to retreat from its record high set in late December.
Recent selling in the shares comes after investment bank Morgan Stanley initiated coverage on the stock earlier this week with an “underweight” rating and reports surfaced that Cathie Wood’s ARK Investment Management tech funds had sold shares in the company.
The analytics software provider had a stellar 2024, ending the year as the S&P 500’s best performing stock. Its shares more than quadrupled, boosted by growing demand for its suit of AI software products.
Palantir shares were down 3% at around $68 in recent trading, after falling nearly 8% on Tuesday. The stock is down 20% from its Dec. 24 all-time high.
The stock broke down from a rising wedge in late December and has recently found renewed selling pressure on a retest of the pattern’s lower trendline.
Investors should watch crucial support levels on Palantir’s chart around $66. $59, and $45, while also monitoring a major resistance area near $81.
Read the full technical analysis piece here.
Major Index Futures Fluctuate Near Unchanged
3 hr 26 min ago
Futures tied to the Dow Jones Industrial Average were down fractionally.
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S&P 500 futures slipped 0.1%.
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Nasdaq 100 futures were also off 0.1%.
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