U.S. stock futures were mixed on Tuesday as investors waited for fresh jobs and manufacturing data. The data could provide clues to the path of interest rate cuts. Dow Jones Industrial Average futures slid 0.2%.
S&P 500 futures hovered just below the flatline. Contracts on the tech-heavy Nasdaq 100 were also little changed. Stocks are getting October and the fourth quarter off to a variable start.
The market is digesting the Federal Reserve’s stance on interest rates. The Federal Reserve chair stated that policymakers aren’t in a hurry to lower rates. They want to keep the economy on a solid footing.
This prompted traders to reduce bets on another 0.5% cut. A report on August job openings is due later. It could reset those bets if it comes in softer than expected.
The Fed’s focus is now firmly on the labor market. Updates from ISM and S&P Global on manufacturing activity are also likely to draw attention. They could provide clues on how quickly the U.S. economy is slowing.
The readings will prepare the ground for the September jobs report release on Friday. Investors see this as a crucial indicator. Meanwhile, a storm on the East and Gulf coasts is threatening to halt the flow of half the U.S.’s ocean shipping.
Disruption from this large-scale stoppage could cost the economy billions of dollars a day. It could also stoke inflation and put jobs at risk. Investors were also keeping a watchful eye on geopolitical developments in the Middle East.
In corporate news, Barclays analyst Tim Long reiterated an underweight rating on Apple. He cited weak demand for the iPhone 16. Overall, investors are watching for confirmation that the U.S. economy is cooling, rather than crumbling.
The Dow Jones Industrial Average dropped Tuesday as Wall Street awaited key economic data. Ahead of the opening bell, the Dow Jones futures fell 0.3%. S&P 500 futures lost 0.1%.
Tech-heavy Nasdaq 100 futures moved up a fraction in early trading. Early Tuesday, the 10-year Treasury yield ticked lower to 3.75%. Oil prices fell, with West Texas Intermediate futures trading around $67.60 per barrel.
Google stock advanced 1.6% premarket Tuesday. Pivotal Research started coverage on the search giant with a buy rating and a $215 price target. That’s a 30% premium to Monday’s closing price.
Wall Street awaits economic data
Alphabet shares are reclaiming their 50-day line this week. On the economic front, several key reports are due out.
The Purchasing Managers’ manufacturing index is set for release at 9:45 a.m. ET. The Institute for Supply Management’s manufacturing reading, the Commerce Department’s construction spending, and the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) are all scheduled for 10 a.m. ET. The PMI manufacturing index is expected to fall to 47.0 in September from August’s 47.9. Construction spending is expected to fall 0.3% in August.
Job openings are expected to hold steady at 7.7 million in August. Key earnings movers Tuesday include Acuity Brands, which rose 2.8% in premarket trading. McCormick climbed 1.5%.
Paychex stock was up 1.7% in morning action. On Monday, the Dow Jones Industrial Average inched higher. The S&P 500 gained 0.4%.
The Nasdaq composite also rose 0.4%. Google, Nvidia, Apple, and Tesla were notable movers. Nvidia stock gained 0.5% Tuesday, still holding above the 50-day line.
Tesla rose 0.4% Tuesday morning, moving closer to a 274 buy point. Amazon, Apple, and Microsoft were closely watched. Amazon shares are nearing a 195.37 buy point.
Apple is close to a V-shaped cup with handle showing a 232.92 entry. Microsoft is back above its 50-day line and nearing a 441.85 buy point in a cup with handle. Investors remain focused on handling current trading conditions.
They are also identifying opportunities as key economic data approaches. Wall Street is poised for a subdued open on Tuesday as investors await crucial labor data. Federal Reserve Chair Jerome Powell has signaled that only modest rate cuts may be on the horizon.
In recent developments, futures for the Dow Jones Industrial Average were down 0.29%. S&P 500 futures dipped 0.10%. Nasdaq futures showed a marginal increase of 0.01%.
The market is closely watching the Aug JOLTS report and the September ISM survey, both due at 10 a.m. ET. These reports could provide further insight into the state of the U.S. labor market and economic conditions. Among individual stocks, Boeing slipped after reports surfaced that the company is weighing a potential capital raise.
A port strike has halted half of ocean shipping activities, although retail stocks remained largely unchanged. Meanwhile, government bonds rallied on Tuesday as eurozone inflation data strengthened the case for faster European Central Bank rate cuts. The dollar firmed following Powell’s comments, which tempered expectations for a second significant U.S. rate cut.
Investors and analysts will continue to monitor these developments closely. They could have significant implications for financial markets in the coming weeks.
