The S&P 500, Nasdaq and other major US equity indexes all fell on Tuesday following the record-breaking session in which the S&P 500 & Nasdaq reached.
Investors are watching for key US labor data that will be released this week. They’ll also be listening to comments by Federal Reserve officials.
The October report on the job openings and labour turnover is due to be published later Tuesday.
On Friday, the much-anticipated US nonfarm payrolls will be published. This is an important metric for gauging Fed interest rate trends.
The Dow Jones Industrial Average fell 0.3% at the time this article was written, and the S&P 500 Index dropped a bit more than 0.1% since the last close.
Nasdaq Composite remained largely unchanged from its previous session.
S&P 500 as well as Nasdaq both hit new highs Monday. This is in addition to the strong gains they made after the election.
The S&P 500 is up 4.6% since November 5 and the Nasdaq is up 5.2%. Since then, the Dow has risen 6% and trades near 45,000.
David Morrison is a senior analyst for Trade Nation.
The recent price movement has been a slow and steady climb. This follows the explosive rally across all the majors in November, triggered by Trump’s election victory, and led by the domestically-focused, mid-cap Russell 2000.
The US Federal Reserve will release the key economic statistics this week ahead of its much-anticipated policy meeting scheduled for December 17-18.
US Steel Sinks
The shares of US Steel fell more than 7 percent on Tuesday, after Donald Trump refused to approve Nippon Steel’s purchase plan.
Trump posted on Truth Social, his platform for social media: “I’m totally opposed to the purchase of U.S. Steel by Nippon Steel of Japan.
I will stop this transaction. Buyer Beware!! !”
Nippon Steel hopes, however, to complete the deal before Trump takes office as president.
A strong US union and the current President Joe Biden are also against this company.
Live Nation’s stock fell by 2% as the concert promoter announced an offer of convertible senior notes worth $1 billion.
Credo Technology Group leaps
After posting positive results, shares of this tech company rose 32%.
Analysts’ expectations for earnings in the second quarter of fiscal year 2016 were exceeded.
On revenue of $72 Million, adjusted earnings were 7 cents per share. Analysts from LSEG estimated earnings at 5 cents per shares on revenue of $67 Million.
Super Micro Computers extends gains
On Tuesday, shares of this artificial intelligence server manufacturer grew by 8%.
On Monday the stock continued its meteoric rise, with shares surging by 29%.
Stockss rose Monday, after a committee found that there was no evidence of wrongdoing in the company’s business.
The company also stated that there were no “substantial concerns” about Supermicro’s integrity or the Audit Committee’s commitment to ensure the accuracy of the financial statements.
Bernstein downgrades FedEx
Bernstein told CNBC that FedEx’s potential decision to spin off its business of less-than truckloads could have a negative impact on the company’s stock.
It lowered its rating of the firm to Market Perform from Outperform.
The price target was also reduced to $316 from $337.
CNBC quoted analyst David Vernon as saying, “We still see long-term value in the stocks, but adding these levels before increasing execution, policy, and event risk seems hard to justify.”
We are taking a strategic pause, and we’re lowering our ratings ahead of the widely anticipated reset of near-term guidelines framework/uncertainty around meeting high LTL cargo spinoff expectations.
Shares of FedEx were down almost 3% at the time this article was written.
The post Markets edge lower as US Jobs Report looms, US Steel drops and Credo Technology surges could be updated as new information becomes available
