U.S. stocks rose in Wednesday’s opening session before giving up gains, it continued slow start Until next week, when investors digest new economic data and await comments from Federal Reserve Chairman Jerome Powell.
S&P 500 (^GSPC) was down 0.3% in early trade, while the Dow Jones Industrial Average (^DJI) It decreased by 0.6%. The tech-heavy Nasdaq Composite (^IXIC) increased by 0.2%.
Shares finished low On Tuesday, even concerns about China’s strict zero-covid policy eased. U.S.-listed Chinese stocks rose for a third day as Beijing announced on Tuesday that it plans to speed up vaccination of Chinese seniors, fueling optimism among investors that COVID restrictions will be eased amid nationwide protests.
The US dollar weakened on Wednesday, with the yield on the 10-year Treasury note falling to 3.733% from 3.755% on Tuesday. Brent oil, the global benchmark in oil markets (BZ=F) increased by 2.3% and reached $82.90 per barrel. WTI crude oil (CL=F) rose by 2.6% to $80.25 a barrel on Wednesday.
For investors, all eyes will be on Federal Reserve Chairman Jerome Powell’s speech at the Brookings Institution on Wednesday afternoon, his last before the Fed’s next rate-setting meeting in mid-December. Andrew Tyler, head of US Market Intelligence at JP Morgan, wrote that “investors are alternating between preparing for a repeat of Jackson Hole and seeing Powell repeat the sentiments of another Fedspeak.”
As the Fed tries to meet its dual mandate of price stability and maximum sustainable employment, Powell is expected to signal that the Fed is on track to ease the pace of monetary policy tightening slightly, possibly to 50. -base points increase.
The speech also comes less than two weeks before the release of November consumer price data.
“All eyes will continue to be on inflation at this point,” said Anthony Saccaro, president of Providence Financial and Insurance Services. Yahoo Finance Live Tuesday.
Ahead of Powell’s speech on the plan on Wednesday, US Secretary Janet Yellen pointed to the Fed’s authority as an institution, saying they are “qualified people trying to exercise their best judgment”.
Earlier in the day, investors learned another wave of macroeconomic data. The ADP employment report showed that private companies added 127,000 jobs for November. about 200,000 below expectationsin further signs of labor market cooling.
“Labor market turning points can be difficult to capture, but our data shows that Federal Reserve tightening is having an impact on job creation and wage growth,” Nela Richardson, Chief Economist of ADP, – the statement said. “Furthermore, companies are no longer in hyper-replacement mode. Fewer people are leaving work and the post-pandemic recovery is stabilizing.”
Also on the data front:
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For the third quarter of 2022, US GDP grew 2.9% year over year, according to government estimates. Personal Consumption Expenditures were also identified in the report (PCE) indexThe price of consumer goods and services, which measures the price of consumer goods and services, was revised upward by 0.1 percentage point, rising 4.3% in the quarter. Excluding food and energy prices, the PCE price index rose 4.6%, also up 0.1 percentage point.
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Jobs in the USA It fell to 10.33 million in October, down 10.68 from the previous month, according to the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS). Economists polled by Bloomberg expect monthly job losses of 10.25 million.
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Contracts signed for the purchase of existing homes in the U.S. fell 4.6% in October, the fifth straight decline as higher rates fell due to demand, data from the National Association of Realtors showed on Wednesday.
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The Chicago Purchasing Managers Index (PMI) fell to a below-expected 37.2 from 47.0, the lowest reading since June 2020.
Finally, the Fed’s Beige Book, the Fed’s survey of regional banks, will be released on Wednesday afternoon.
On the earnings front, Salesforce (CRM), Five Below (FIVE), Okta, Inc. (OKTA), Snowflake (SNOW) and Victoria’s Secret (VSCO) is set to report earnings on Wednesday.
Shares of CrowdStrike Holdings, Inc. (CRWD) plunged more than 18% after the cybersecurity company predicted quarter Revenue missed analysts’ expectations as customers cut spending and delayed purchases due to macroeconomic headwinds. DoorDash (DASH) is laying off about 1,250 people to cut costs, This is stated in Bloomberg’s reportCiting CEO Tony Xu’s memo.
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Dani Romero is a reporter for Yahoo Finance. Follow him on Twitter @daniromerotv
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