U.S. Stocks Turn Lower in Early Trading, Treasury Yields Jump
U.S. stocks have turned lower in early Tuesday trading, while Treasury yields have jumped, as investors look to the first of a series of job market data releases that could test the market’s early January rally.
JOLTS Report Shows Solid Momentum into Final Weeks of Year
The Labor Department’s Job Openings and Labor Turnover (JOLTS) report has shown that the number of unfilled jobs in the U.S. economy spiked to 8.01 million in November, suggesting solid momentum into the final weeks of the year. This is up more than 400,000 from the October reading and well ahead of the Street’s 7.84 million forecast.
Key Points:
- The number of unfilled jobs in the U.S. economy spiked to 8.01 million in November.
- This is up more than 400,000 from the October reading and well ahead of the Street’s 7.84 million forecast.
- The JOLTS report suggests solid momentum into the final weeks of the year.
ISM Service Sector Activity Stronger-Than-Expected
The Institute for Supply Management (ISM) has posted its final reading of service sector activity over the month of December, which was not only stronger-than-expected but also included the biggest gain in ‘price paid’ by suppliers since February 2023. This data has lifted benchmark 10-year Treasury note yields to 4.679% in the wake of the data release.
Stock Market Performance
The S&P 500 has given back earlier gains to fall 15 points, or 0.25%, on the session, while the Dow gained 164 points. The Nasdaq rose 21 points, or 0.11%, and the mid-cap Russell 2000 added 14 points, or 0.31%.
Micron Technology Shares Surge
Shares in Micron Technology (MU) are a notable premarket mover after Nvidia CEO Jensen Huang named-dropped the memory chip maker as a key supplier to its new line of AI-powered gaming GPUs. This has pushed Micron shares up 3.8% higher in premarket trading.
Related: Micron stock leaps following Nvidia CEO Jensen Huang’s CES reveal
Stock Market Today
Stocks ended firmly higher on Monday, with megacap tech names and a fresh record high for Nvidia (NVDA) once again pacing gains and lifting the S&P 500 to a 0.55% advance by the close of trading.
Key Points:
- Stocks ended firmly higher on Monday.
- Megacap tech names and a fresh record high for Nvidia paced gains.
- The S&P 500 rose 0.55% by the close of trading.
- The Nasdaq jumped 1.24%.
Labor Market Data Releases
The Labor Department will release its November job openings report later this morning, which is the first of four data releases over the week that conclude with Friday’s December nonfarm-payrolls update.
Key Points:
- The Labor Department will release its November job openings report.
- This is the first of four data releases over the week.
- Economists are expecting to see a modest uptick in unfilled positions over the month.
- The so-called quits rate will be closely watched to determine labor market conditions.
Overseas Markets
In overseas markets, the regional Stoxx 600 benchmark nudged 0.15% higher in Frankfurt while Britain’s FTSE 100 slipped 0.21% in midday London trading. Overnight in Asia, Japan’s Nikkei 225 followed last night’s rally on Wall Street with a solid 1.97% gain.
Key Points:
- The regional Stoxx 600 benchmark nudged 0.15% higher.
- Britain’s FTSE 100 slipped 0.21%.
- Japan’s Nikkei 225 rose 1.97%.
Conclusion
The U.S. stock market has turned lower in early trading, while Treasury yields have jumped, as investors look to the first of a series of job market data releases that could test the market’s early January rally.
Key Points:
- The U.S. stock market has turned lower.
- Treasury yields have jumped.
- Investors are looking to job market data releases for guidance.
- The JOLTS report suggests solid momentum into the final weeks of the year.
Recommendations
The market is currently uncertain, and it’s best to wait for further clarification before making any investment decisions.
