Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Stocks - Last-Ditch Selling Hits Dow; Traders Weigh Weak Jobs Data, Tech Strength

Stock MarketsMay 06, 2020 04:09PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Yasin Ebrahim 

Investing.com – The Dow ended lower on Wednesday, as investors reined in their bullish bets on stocks ahead of the close on further signs of trouble in the labor market. But the ongoing rise in technology stocks kept losses in check.

The Dow Jones Industrial Average fell 0.91%%, the S&P 500 slipped 0.70%, while the Nasdaq Composite added 0.51%.

The underlying strength of the economy was given another gut check on Wednesday, as ADP reported that private labor jobs fell by 20.2 million last month, the worst decline on record.

The weakness in the labor market has added to investor fears the consumer will be cautious on spending at a time when many hope the lifting of restrictions around the country will kickstart economic growth.

Worries that the U.S. and China could be headed for a fresh collision course on trade also weighed on sentiment, with President Donald Trump expected to provide an update next week on whether China is sticking to its agreements under phase one trade deal agreed last year.

The update will come against the backdrop of the rising U.S.-Sino tensions as the Trump administration has threatened to impose tariffs on Beijing for its handling of the coronavirus.

Utilities, which usually serve as the defensive corner of the market, were among the worst hit, paced by declines from NiSource (NYSE:NI) and American Electric Power (NYSE:AEP) amid weaker-than-expected quarterly results.

The ongoing climb tech stocks, however, led by FAANG - with the exception of Google parent Alphabet (NASDAQ:GOOGL) - and chip stocks limited downside momentum in the broader market.

The Philadelphia Semiconductor Index climbed 1%, led by a surge in KLA-Tencor (NASDAQ:KLAC), Xilinx (NASDAQ:XLNX) and Applied Materials (NASDAQ:AMAT).

On the earnings front, meanwhile, investors digested mostly bullish quarterly results from corporates.

General Motors (NYSE:GM) rose 3% after reporting first-quarter earnings that topped consensus estimates.

Wendy’s (NASDAQ:WEN) rallied 6.6% after the declines in same-restaurant sales narrowed each week through April, while first-quarter results slowed from the Covid-19 pandemic.

Shopify (NYSE:SHOP) jumped 7.28% as revenue topped estimates amid a surge in demand for e-commerce as the pandemic has shuttered offline businesses.

Pinterest (NYSE:PINS) reported revenue that topped estimates, but the social media company warned on gross margins as advertising income slowed in the wake of the coronavirus crisis, sending its shares 15% lower.

Energy stocks were among the biggest decliners on the day, as oil prices fell amid ongoing concerns about a glut in supply, but a smaller-than-expected build in weekly U.S. crude inventories supported sentiment somewhat. 

Stocks - Last-Ditch Selling Hits Dow; Traders Weigh Weak Jobs Data, Tech Strength
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (10)
Ross Dre
Ross Dre May 06, 2020 8:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Tech “strength”
Dee Mehta
DMFINANCE May 06, 2020 8:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Really u huys are selling junk to innocent investors part of grand ponzy scheme
Adamo Nals
Adamo Nals May 06, 2020 8:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You have maybe two more weeks of this bear market rally. As you see when states open up and you’ll see more people get sick unfortunately and reality set in the economy is in a depression not a recession. the market will then start to go down but between now and probably late May you could see it going higher a little bit. Than boom. Crash down
James Dorward
James Dorward May 06, 2020 8:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
wrong! already hit bottom March 23rd! 11,000 points! think positive! start investing!
Mike Dough
Mike Dough May 06, 2020 8:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Adamo, why so doom and gloom. Go back in hibernation
chip isbell
Chip May 06, 2020 8:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Wear your PPE as needed and go about life.  Tired of this fear mongering. 1/10 of one percent in the US have gotten this virus and due to fear it has cost us Trillions.
Michael Angelo
Michael Angelo May 06, 2020 7:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Is so funny that in the need to sell ads and entertain people, news website creates a mix between reality, what they think is the reality and what people think is the reality. In summary, a waste of time.
DJ Ryte
DJ Ryte May 06, 2020 7:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
perception not reality is the "truth" of today
Dietmar Stahl
Dietmar Stahl May 06, 2020 7:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the economy can come back fast if the Covid19 standards are quickly established. Everyone can add on steps to their daily routine to avoid contact with the Covid19.
Etienne Schoen
Etienne Schoen May 06, 2020 6:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What an upturn! But ... if something is too good to be true, it's just too good. Thus, the fasten seat belt sign is on ...
Mart Bab
Rubberduck1973 May 06, 2020 6:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
if you still think this is going up or sideways, hit the books
Nick Passarella
Nick Passarella May 06, 2020 4:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It drives me crazy when I see these headlines, I mean the market acts like this is all new. Can't we just build all the doom and gloom in and go with it already! They act like they just noticed lower earnings, etc. And its not a big drop, just a sluggish end of the days! Uhh
Joanna Yin
Joanna Yin May 06, 2020 4:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
can imagine Apple can sale move device and google can sale more ad and Amazon can sale more (when stores open) and Tesla can sale more ***
Harry Hall
HarryH May 06, 2020 4:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
2021 they will
wombat dd
wombat dd May 06, 2020 4:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
people are too optimistic about tesla
Babak Teymuori
Babak Teymuori May 06, 2020 4:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
chz
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email