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Wall Street ends mixed as investors eye jobs data

Published 08/04/2022, 07:51 AM
Updated 08/04/2022, 07:40 PM
© Reuters. A trader works on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 3, 2022. REUTERS/Andrew Kelly

By Sruthi Shankar and Medha Singh

(Reuters) -Wall Street's main indexes ended mixed in a dull session on Thursday as gains in high-growth stocks offset losses in energy shares, with investors looking ahead to monthly jobs report for clues on the pace of interest rate hikes by the Federal Reserve.

The tech-heavy Nasdaq hit a fresh three-month high led by Inc (NASDAQ:AMZN) and Advanced Micro Devices (NASDAQ:AMD), while losses in energy stocks including Exxon Mobil (NYSE:XOM) and Chevron Corp (NYSE:CVX) weighed on the S&P 500.

Worries about a slowing global economy pushed oil prices to their lowest since before Russia's February invasion of Ukraine and U.S. bond yields slipped after the Bank of England warned of a long recession. [O/R]

Strong earnings reports and a surprise pick-up in services sector activity had sent the main indexes sharply higher in the previous session.

"The market is looking for direction after a strong bounce that relieved the deep pessimism that had permeated the markets," Yung-Yu Ma, chief investment strategist at BMO Wealth Management.

"Many signs indicate that inflation has peaked and the question now turns to how quickly it will come down or whether stickier components will keep it higher than the Fed is comfortable with."

The Dow Jones Industrial Average fell 85.68 points, or 0.26%, to 32,726.82, the S&P 500 lost 3.23 points, or 0.08%, to 4,151.94 and the Nasdaq Composite added 52.42 points, or 0.41%, to 12,720.58.

Focus on Friday will be on closely watched U.S. employment report, which is expected to show nonfarm payrolls increased by 250,000 jobs last month, after rising by 372,000 jobs in June.

Any signs of strength in the labor market could feed into fears of aggressive steps by the Fed to curb inflation.

Cleveland Fed President Loretta Mester, a voting member of the rate-setting panel, reiterated the need to see several months of inflation coming down toward the Fed's 2% target before policymakers can let up on tightening monetary policy.

The S&P 500 has gained about 14% from its mid-June lows, but is still down about 13% for the year on concerns around the fallout of the Ukraine war, soaring inflation, COVID-19 flare-ups in China and an aggressive rise in interest rates.

Among individual stocks, crypto exchange Coinbase (NASDAQ:COIN) Global Inc jumped 10% after it announced a tie-up with BlackRock (NYSE:BLK) to provide its institutional clients access to crypto trading and custody services.

Health insurer Cigna Corp (NYSE:CI) gained 3.1% after raising its annual profit forecast.

Drugmaker Eli Lilly (NYSE:LLY) and Co slipped 2.6% as it cut annual profit view for the second time.

Facebook-parent Meta Platforms closed up 1.0% after it said it would make its first-ever bond offering.

Advancing issues outnumbered decliners by a 1.02-to-1 ratio on the NYSE and 1.40-to-1 ratio on the Nasdaq.

© Reuters. FILE PHOTO: A trader works on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 3, 2022. REUTERS/Andrew Kelly

The S&P index recorded one new 52-week high and 29 new lows, while the Nasdaq recorded 59 new highs and 31 new lows.

Volume on U.S. exchanges was 11.38 billion shares, compared with the 10.76 billion average for the full session over the last 20 trading days.

Latest comments

How many screens does this guy need?
Federal Reserve official Loretta Mester stated that recession risks have increased in the US, adding that supply issues are likely to persist for some time, interest rates should continue to rise at least through this year and the first half of 2023....
the fear of inflation is finally ended?
"The battle right now is how serious concerns about recession will become and so far the market seems less concerned that there is a recession coming." -- aren't we already in a recession?? What is he talking about?
As always... press opinion is noise...
shows you how D u m she is
  Unlike many here, she knows recession has no been called officially yet.
"The battle right now is how serious concerns about recession will become and so far the market seems less concerned that there is a recession coming." -- Aren't we already in a recession???
The miraculous return of intraday volatility, only in the biggest investment JOKE in the world.
"intraday volatility" can't return since it never left.
The markets are digesting today's monetary policy decision from the Bank of England (BoE), which raised its benchmark interest rate by the most in 27 years and warned of a prolonged recession. Earnings data continue to flood in, with Eli Lilly and Company missing expectations and lowering its guidance, Booking Holdings topping earnings forecasts but offering a cautious outlook,
Im so tired of these articles every day trying to explain why the market does what it does. Maybe it’s just completely random and has nothing to do with energy or jobless claims or apple.
The headlines are a little ridiculous when the direction of the market at the moment is attributed to the topic of the article
  It's ridiculous to complain about the current direction of the market not matching the article when the article is > 1/2 hour old, and mis-read the article as if it was predicting anything.  99% of the time the article just says what happened, sometimes what may happen.
  * That's not directed at you, directed generally at others' complains.
expect snp to surprise everyone with 5k new high
in your alternative unicorn world it could happen.
Another miracle "recovery" in the biggest investment JOKE in history.  Losses can't be tolerated, and when they occur, magically vanish the day after.  Charles Ponzi would cry tears of joy if he could only see the ultimate incarnation of his work in action.  Nothing but a criminally manipulated farce.
Sometimes market goes up, sometimes down.  Stop being triggered by every little move.
hard to understand the irrational exuberence given what is coming in Q3 and historically crashy October.
"Nothing in economic news" --  Try military news, such as how Ukraine has been putting US himars to good use.  Russia withdrawing is very good news for world economies & stock markets.
  Market was lower in mid-June.  Maybe market was rational earlier in the year, but it was irrational in mid-June, and that's why market's been rising since then.  May become irrationally bullish.
Cherry picker!
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