S&P 500 closes near flat; more data on jobs is awaited. Middle East in focus
S&P 500 closed little changed Wednesday. Technology shares gained, but investors were nervous about Middle East tensions. Also, more U.S. employment data is due this week.
Nvidia shares are up, which helped lift the S&P 500 Technology index. Nike shares fell after the athletic apparel and footwear maker retracted its annual revenue projection just before a new CEO was set to take over.
Investors monitored Mideast headlines after Israel and the U.S. pledged to strike back following Iran's attack on Israel on Tuesday. Joe Biden, the U.S. president, said that he did not support an Israeli strike against Iran's nuclear facilities in response to Tuesday's missile attack. He also urged Israel to respond "proportionally."
The data released on early Wednesday confirmed that private payrolls in the United States increased more than anticipated in September. This is further proof that the labor markets are not degrading. Investors are still focused on the non-farm payrolls for September, which will be released on Friday.
Michael O'Rourke is the chief market strategist of JonesTrading, a Stamford-based brokerage.
"We are nearing all-time records, and we're confident that we have a Fed friendly out there. Investors want positive comments from companies before they continue to push stocks higher. "People like the Fed's dovishness and are waiting for an excuse to increase prices."
The preliminary data shows that the S&P 500 rose 0.68 points or 0.01% to 5,709.43, and the Nasdaq Composite rose 13.90 points or 0.08% to 17,924.26. The Dow Jones Industrial Average increased 38.50 points or 0.09% to 42,195.47.
The market closed September with strong gains, after the Federal Reserve began its monetary policy-easing cycle by introducing an unusual rate cut of 50 basis points to boost the job market.
Odds of a quarter-percentage-point rate reduction at the Fed's November meeting are at 65.7%, up from 42.6% a week ago, the CME Group's FedWatch Tool showed.
JPMorgan Chase, along with other major banks, will begin the S&P 500's third-quarter earnings on October 11.
Sources say that the strike by dockworkers, which has halted shipments in ports on the U.S. East Coast as well as Gulf Coast, entered its second day Wednesday. There were no scheduled negotiations between both sides.
JPMorgan analysts estimate that the dockworkers' strikes costs the economy $5 billion per day.
Tesla shares dropped after the electric vehicle maker reported that third-quarter vehicle delivery was below expectations.
Humana shares dropped after the insurer announced that it expects enrollment in its best-rated Medicare Advantage plan for seniors to decline by 2025.
(source: Reuters)
