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Wall Street closes mixed, S&P 500 ends off record high

Stock MarketsAug 04, 2021 08:35PM ET
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© Reuters. FILE PHOTO: A Wall Street sign is pictured outside the New York Stock Exchange in New York, October 28, 2013. REUTERS/Carlo Allegri

By Echo Wang

(Reuters) - U.S. stocks closed mostly lower on Wednesday, with the S&P 500 falling from a record high after data signaled a slowdown in jobs growth in July, and General Motors (NYSE:GM) tracked its worst day since early March.

GM's shares slumped 8.9%, underscoring the uncertainty facing global automakers at a time of technological and economic disruption. Shares of rival Ford Motor (NYSE:F) Co fell 5.0%.

Nine of the 11 S&P indexes were lower, with industrials and energy both slipping, as data showed U.S. private payrolls increased far less than expected in July, likely constrained by shortages of workers and raw materials.

The blue-chip Dow, heavily weighted toward economically-sensitive stocks, also declined.

The technology-heavy Nasdaq bucked the trend after another report showed a measure of U.S. services industry activity jumped to a record high last month, suggesting a broader economic rebound was still on track.

"The ADP employment report this morning (is a) big miss ... has people really locked in on tomorrow's initial claims and then Friday's non-farm payrolls report," said Ross Mayfield, investment strategist at Baird in Louisville, Kentucky. "To me that’s a big driver (of the market today)."

"Broadly, the continued evolution of COVID-19, the Delta variant over the recent weeks and months kind of re-rating of the growth outlook" has the market coming to terms with what it means for the reflation trade, and what it means to the bond market, Mayfield said.

After six straight month of gains, the benchmark S&P 500 has struggled to rise in August over concerns about the pace of growth as the economy rebounded from the depths of the COVID-19-driven recession, and fears of higher inflation overshadowed a stellar corporate earnings season.

Federal Reserve Vice Chair Richard Clarida said on Wednesday the central bank should be in the position to begin raising interest rates in 2023.

Still, tech and tech-adjacent stocks such as Netflix Inc (NASDAQ:NFLX) and Facebook Inc (NASDAQ:FB), which tend to perform better when interest rates are lower, outperformed the broader market.

Focus now turns to the Labor Department's monthly jobs report on Friday.

The Dow Jones Industrial Average fell 323.73 points, or 0.92%, to 34,792.67, the S&P 500 lost 20.49 points, or 0.46%, to 4,402.66 and the Nasdaq Composite added 19.24 points, or 0.13%, to 14,780.53.

In earnings-related moves, BorgWarner Inc (NYSE:BWA) fell even as it beat profit expectations on strong consumer demand for new vehicles, while Kraft Heinz (NASDAQ:KHC) Co tumbled after warning of margin pressure from higher prices of ingredients.

Robinhood Markets Inc (NASDAQ:HOOD) jumped 50.4% as interest from star fund manager Cathie Wood and small-time traders set up the stock for a fourth session of gains after its underwhelming market debut last week.

Volume on U.S. exchanges was 9.78 billion shares, compared with the 9.71 billion average for the full session over the last 20 trading days.

Declining issues outnumbered advancing ones on the NYSE by a 2.02-to-1 ratio; on Nasdaq, a 1.82-to-1 ratio favored decliners.

The S&P 500 posted 67 new 52-week highs and 3 new lows; the Nasdaq Composite recorded 93 new highs and 107 new lows.

Wall Street closes mixed, S&P 500 ends off record high
 

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Comments (10)
Jerry Weber
Jerry Weber Aug 04, 2021 2:33PM ET
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Biden administration is an epic failure against Covid! Worst than Trump!!!!
Mitchel Pioneer
Mitchel Pioneer Aug 04, 2021 2:06PM ET
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Here comes the "late day" fraud, predictable as the sunset.  Assume the proper position America.
Eudon Hickey
Eudon Hickey Aug 04, 2021 1:50PM ET
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What about Pelosi insider trading(Paul her husband, made $5,3m) from a bill she worked on?
Rosh Jardine
RoshJardine Aug 04, 2021 1:23PM ET
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Of course job growth needs to be slow to make the book looks promising to shareholders...enjoy the poison..
Adamo Nals
Adamo Nals Aug 04, 2021 12:24PM ET
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End*
Adamo Nals
Adamo Nals Aug 04, 2021 12:24PM ET
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Will emd horribly. Been trading since early 80 s. Seen it all. This is the worst yet. Its so close to collapsing its not funny. Whole market.
me ish
me ish Aug 04, 2021 12:24PM ET
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just one or two more days left - then it's timber!
Jon Bal
Jon Bal Aug 04, 2021 11:48AM ET
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time to employ the 2pm indicator
CHADWICK RICHINGTON
CHADWICK RICHINGTON Aug 04, 2021 11:39AM ET
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You cannot print your way to propserity
me ish
me ish Aug 04, 2021 11:39AM ET
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those close to the printer, can, but for the economy or everyone else - they just get shafted - ever the way it was - this is an entirely planned virus (patents for the virus and the vaccine going back to 2002 - and a planned wealth grab by the super powerful - they're all in on it - Republicans and Dems alike - all with their heads in the trough of the CIA led Military Industrial (pharma this time) Complex - the arms industry has also done incredibly well out of the prolonged but lost wars in Iraq and Afghanistan - millions dead, but loads of profit for the arms guys! And the oil and gas in the Middle East is still as unprotected and vulnerable as ever.
simone scelsa
simone scelsa Aug 04, 2021 10:06AM ET
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All those trillions of stimulus are working exceedingly well...NOT!
jonathon blackmon
jonathon blackmon Aug 04, 2021 10:06AM ET
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trust me it is working its call delta
Mitchel Pioneer
Mitchel Pioneer Aug 04, 2021 9:48AM ET
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The focus remains on NASDAQ 15K, as the flagrant, criminal manipulation continues.  Another routine day of FRAUD in the biggest investment JOKE in history.
jason xx
jason xx Aug 04, 2021 9:48AM ET
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Another Bear wiped out on margin call pretending to care about the economy beyond that.
Jouni Matero
Jouni Aug 04, 2021 9:48AM ET
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Obviously you haven't been following his posts but as a newbie came to comment. Mitchel has been saying this for months and months. Typical selfish bull comment you got there.
 
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