Last Updated: 4:16 PM EST
Stock indices finished today’s trading session in the red as growth fears spooked investors. Indeed, the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) fell 0.3% and 0.54%, respectively. This is because Automatic Data Processing (ADP) released its Nonfarm Employment Change report, which came in worse than expected. In August, nonfarm employment increased by 99,000, whereas expectations were for an increase of 144,000.
However, the Department of Labor put out its Initial Jobless Claims report, which came in better than expected. In the past week, 227,000 people filed for unemployment insurance for the first time. Expectations were for 231,000 individuals.
In addition, the Institute for Supply Management released its monthly report for the ISM Non-Manufacturing Purchasing Managers’ Index, which measures the overall economic condition of the non-manufacturing sector. A number over 50 represents an expansion, whereas anything below 50 signals a contraction. The report came in at 51.5, higher than the expected 51.3 and above last month’s reading of 51.4.
First Published: 4:51 AM EST
U.S. futures showed little movement on Thursday morning following a volatile start to September. The market’s difficulties this month have been worsened by renewed concerns about a potential recession. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up by about 0.07%, 0.13%, and 0.14%, respectively, at 4:19 a.m. EST, September 5.
In yesterday’s trading session, the Dow Jones Industrial Average posted a modest gain of 0.1%. Conversely, the S&P 500 and Nasdaq Composite both ended lower for the second day in a row, down 0.2% and 0.3%, respectively. This downturn was largely due to declines in most of the Magnificent Seven stocks.
Among other key movers, cybersecurity firm Zscaler (ZS) plunged 19% following weaker-than-expected earnings guidance. Additionally, discount retailer Dollar Tree (DLTR) declined over 22% after reporting weak results in Q2 and lowering its FY24 revenue outlook.
Today, investors will be able to assess the situation of the U.S. labor market with the Initial Jobless Claims for the week ended August 30 and the Nonfarm Employment Change report from Automatic Data Processing (ADP) scheduled for release. Moreover, the Services Purchasing Managers’ Index (PMI) data for August will be made public today.
On the earnings front, Nio (NIO), Broadcom (AVGO), DocuSign (DOCU), and UiPath (PATH) will announce results today.
Meanwhile, the U.S. 10-year treasury yield was up at the time of writing, floating near 3.77%. At the same time, WTI crude oil futures trended higher, hovering near $69.51 per barrel as of the last check.
Elsewhere, European markets opened flat on Thursday as investors looked forward to a key U.S. job report, August Nonfarm Payrolls, due tomorrow. This report could impact the Federal Reserve’s interest rate decision later this month.
Asia Pacific Markets Traded Mixed on Thursday
Asia-Pacific indices traded mixed today as investors assessed real wage data from Japan, which reflected an increase for the second straight month in July. Also, the traders looked ahead to U.S. payroll data to gain an insight into the central bank’s monetary decision.
Hong Kong’s Hang Seng index was down 0.12%. Further, Japan’s Nikkei and Topix indices closed lower by 1.05% and 0.48%, respectively. However, China’s Shanghai Composite and Shenzhen Component indices gained 0.14% and 0.28%, respectively.
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