Stock Market Today: Stocks Mixed As Techs Drag Nasdaq Lower
Technology shares dragged the Nasdaq lower Tuesday amid anxiety over the U.S.-China trade dispute and a downturn in the global economy as Treasury yields rose for the fifth straight day.
At the close, the Dow Jones Industrial Average was flat to lower much of the day, but in a flurry in last-minute trades, added 73.45 points or 0.27%. The S&P 500 was fractionally higher, adding 4.01 points or 0.03% while the Nasdaq was fractionallyt lower, off 3.28 points or 0.04%.
Volume on the New York Stock Exchange was nearly 3.6 billion shares, with 1,678 issues advancing and 1,274 declining.
Chipmakers and software companies led markets lower. Microsoft (MSFT) and Applied Materials (AMAT) dropped 1.62% and 1.31%, respectively. But Apple (AAPL) shares bucked the trend after its product announcements, moving 0.8% higher.
Labor Department figures showed U.S. job openings in July fell to 7.2 million, down 31,000 from June, an indication that hiring is slowing. Tuesday’s report from ManpowerGroup showed a weakening jobs market in the fourth quarter with just 22 percent of hiring managers nationwide expected to add employees.
Investors are awaiting action on interest rates from the European Central Bank Thursday and the U.S. Federal Reserve next week. The market has been pricing in cuts but it remains unclear what the central banks are considering.
Some investors have begun shifting money from stocks to corporate bonds, highlighting concerns about market volatility and concerns about the economy. The shift indicates that despite slower growth, investors are unconcerned about the ability of companies to repay their debt. With rates on government bonds expected to fall yet again, corporate bonds are looking more attractive.
China eliminated limits for overseas investment in its stocks and bonds in the latest move to attract foreign capital. The action is more of a signal than a response to demand since about two-thirds of the current $300 billion allowance remains untapped.
Deepening factory deflation also is pressuring the Chinese economy while consumer prices are climbing and a faster rate than expected.
In London, Prime Minister Boris Johnson succeeded in suspending Parliament but lost yet another bid for new elections. Parliament will remain out of session until Oct. 14, just three days before Johnson is expected to meet with European Union negotiators about a new deal for Britain’s exit from the economic alliance as scheduled Oct. 31. Any deal now hinges on insistence for no hard border between Northern Ireland and the Irish Republic.
Moody’s cut Ford Motor (F) bond rating to junk status, sending shares down 2.8%, while UBS cut Wells Fargo’s rating from “buy” to “neutral” on bleak prospects for increased profitability, sending shares down 0.3%. Wendy’s also slumped 11% after adjusting its fiscal year guidance.
In Asia, Japan’s Nikkei 225 closed up 0.35% while China’s Shanghai Composite was off 0.12% and Hong Kong’s Heng Seng was flat, up just 0.01%. Australia’s S&P/ASX was off 0.51%.
In Europe, the London FTSE crept up 0.44% while the German DAX added 0.35 and the French CAC rose 0.08%. The British pound was flat, off 0.02% against the dollar.
Ford, Bank of America (BAC) and General Electric (GE) led the most actives.
The 10-year U.S. Treasury yield rose to 1.726%, up 0.08%, while the 30-year rose to 2.212%, up 0.082%.
Crude oil futures were off 0.54%. Gold and silver futures also fell, of 1.08% and 0.29%, respectively.
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