May 29, 2023

DS Duke

Global Business In World

Dow Plunges, Gives Back Tuesday Gains

2 min read
U.S. stocks fell on Wednesday after the earnings of a major automaker and a private...

U.S. stocks fell on Wednesday after the earnings of a major automaker and a private sector jobs report came in lower than expected.

The Dow Jones Industrials tumbled 323.73 points to 34,792.67`, after a sharp rise on Tuesday

The S&P 500 faltered 20.49 points to 4,402.66, from Tuesday’s all-time closing high.

The NASDAQ gained 19.24 points to 14,780.53.

Shares of General Motors fell about 9{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}., weighing on the broader market, after the automaker missed earnings expectations for the second quarter. The automaker did raise its guidance for a key profit metric for the rest of the year.

Cyclical stocks that are tied to the economic recovery were some of the weakest performers on Wednesday. Energy stocks fell, along with oil prices, with Chevron dropping more than 2{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}. Banks and industrials, such as Honeywell, also struggled. Shares of Coca-Cola lost more than 1{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}.

Meanwhile, shares of Robinhood surged 50{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}, continuing a volatile jump after last week’s soft initial public offering. Semiconductor stocks were another bright spot, with Nvidia and Advanced Micro Devices rising.

The ADP private payroll survey showed a gain of 330,000 jobs for July, well short of the consensus estimate of 653,000. The U.S. Labor Department’s official jobs report, which typically has more impact with investors, will be released on Friday.

The labour market readings come as the delta variant of COVID-19 has spread across the U.S., leading to new restrictions and mandates from some companies and local governments.

Treasury Secretary Janet Yellen will say on Wednesday that enacting the trillion-dollar bipartisan infrastructure bill is key to keeping America’s status as the “world’s pre-eminent economic power.” Her comments come as investors await the final details of the bill, over which the Senate is currently haggling.

Prices for 10-Year Treasurys were higher, moving yields back to Tuesday’s 1.18{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}. Treasury prices and yields move in opposite directions.

Oil prices faltered $2.60 to $67.96 U.S. a barrel.

Gold prices regained 90 cents to $1,815.00 U.S. an ounce.

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