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Stock market today: Stocks drift lower with fresh jobs and manufacturing data on deck

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Stock market today: Stocks drift lower with fresh jobs and manufacturing data on deck

US stocks opened lower on Tuesday to begin the new quarter, as investors waited for fresh jobs and manufacturing data to provide clues to the path of interest-rate cuts.

The Dow Jones Industrial Average (^DJI) slid roughly 0.4%, while the S&P 500 (^GSPC) fell about 0.3% after both major indexes secured a fresh record close on Monday. The tech-heavy Nasdaq Composite (^IXIC) also drifted lower, dropping around 0.3%.

Stocks are getting October and the fourth quarter off to a variable start as the market digests the latest comments from Jerome Powell. The Federal Reserve chair said that policymakers aren’t in a hurry to lower rates even as they strive to keep the economy on a solid footing, prompting traders to ramp down bets on another 0.5% cut.

Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards

A report on August job openings due later could reset those bets if it comes in softer than expected, given 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 for clues on how quickly the US economy is slowing.

The readings will prepare the ground for the September jobs report release on Friday, the highlight in a week full of closely watched economic data. Investors are watching for confirmation that the US economy is cooling, rather than crumbling.

Meanwhile, a strike by dockworkers began on the East and Gulf coasts, threatening to halt the flow of half the US’s ocean shipping. Disruption from large-scale stoppage could cost the economy billions of dollars a day, stoke inflation and put jobs at risk, as well as reverberate through US politics.

Investors were keeping a watchful eye on geopolitical developments in the Middle East, after Israeli troops moved into Lebanon.

Live3 updates

  • Stocks off to slow October start

    US stocks opened lower on Tuesday to kick off the first trading day of October and the fourth quarter.

    The Dow Jones Industrial Average (^DJI) slid roughly 0.4%, while the S&P 500 (^GSPC) fell about 0.3% after both major indexes secured a fresh record close on Monday. The tech-heavy Nasdaq Composite (^IXIC) also moved to the downide, dropping around 0.3%.

  • Stellantis stock dips further on Jeep recall over fire risks

    Jeep-maker Stellantis (STLA) edged down 1% in pre-market trading Tuesday after issuing a recall for over 150,000 hybrid Jeep SUVs over a “potential fire risk.”

    The dip in Stellantis shares comes just a day after the stock plummeted 12.5% in reaction to the automaker’s gloomy outlook for its North American operations. Stellantis — which also manufactures Dodge and Ram cars — said it expects to record profit margins of 5.5% to 7% for the full year, rather than its previous double-digit guidance. To weather deteriorating conditions in the global auto industry, the automaker has planned cost-cutting measures and discounts, Yahoo Finance reporter Pras Subramanian explained on Market Domination T.

    Meanwhile, the newly-issued recall affects 2020-2024 Jeep Wrangler 4xe and 2022-2024 Jeep Cherokee 4xe SUVs. The company said it found 13 fires linked to the issue in an internal investigation, but it estimates that only 5% of recalled vehicles exhibit the fire risk.

  • Barclays pulls no punches on Apple

    Barclays analyst Tim Long dropped the mic on Apple (AAPL) this morning in a new note, calling out weak demand for the iPhone 16.

    Here’s what Long had to say:

    “There was a lot of news about increased iPhone builds in early July, a few weeks after the introduction of Apple Intelligence. Based on our recent supply chain channel checks, we believe AAPL may just have cut roughly 3 million units at a key semiconductor component in iPhones for the December quarter, which if confirmed would be the earliest build cut in recent history. Our sell-through checks point to 15% declines year over year for global iPhone 16 in the first week of sales. We also tracked iPhone availability across geographies globally, which suggest softer demand for IP16 relative to last year. Wait times across major geographies we tracked were much shorter vs. last year. While the supply chain constraints on IP15 pro models extended lead times last year, it nevertheless points to potentially weaker-than-expected demand, especially across US and China. All of the above data points point to softer demand than previously anticipated.”

    Long reiterated an underweight rating on Apple (sell equivalent).

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