U.S. stock markets opened lower on Tuesday to start the new quarter as investors waited for new jobs and manufacturing data to provide clues about an interest rate cut.
The Dow Jones Industrial Average (^DJI) fell roughly 0.4%, while the S&P 500 (^GSPC) fell about 0.3% after both major indexes hit a new record on Monday. The tech-heavy Nasdaq Composite ( ^IXIC ) was down 0.3%.
Stocks begin to reverse in October and the fourth quarter as the market digests Jerome Powell’s latest comments. The Federal Reserve chairman said policymakers are in no rush to cut rates even as they try to keep the economy on a solid footing, prompting traders to consider a 0.5% cut.
Read More: What Fed Cuts Mean for Bank Accounts, CDs, Loans and Credit Cards
Those bets could be reset if the August jobs report comes in softer than expected, with the central bank’s focus now firmly on the labor market. Updates on manufacturing activity from the ISM and S&P Global will draw attention to clues about how quickly the US economy is slowing.
The readings will set the stage for Friday’s release of the September jobs report, which is packed with the most closely watched economic data in a week. Investors are looking for confirmation that the US economy is cooling rather than collapsing.
Meanwhile, a dockworkers’ strike began on the East and Gulf coasts, threatening to halt the flow of half of America’s ocean-going ships. The disruption caused by a large-scale strike could cost the economy billions of dollars a day, fuel inflation and put jobs at risk, as well as reverberate through American politics.
Investors have been closely watching geopolitical developments in the Middle East since Israeli troops moved into Lebanon.
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Stocks will drop in early October
U.S. stocks fell on Tuesday for the first trading day in October and the start of the fourth quarter.
The Dow Jones Industrial Average (^DJI) fell roughly 0.4%, while the S&P 500 (^GSPC) fell about 0.3% after both major indexes hit a new record on Monday. The tech-heavy Nasdaq Composite ( ^IXIC ) fell 0.3%.
Stellandis stock further declines in Jeep recall due to fire risks
Jeep maker Stellandis ( STLA ) fell 1% in premarket trading on Tuesday. Issue a callback “Potential fire hazard” for more than 150,000 hybrid Jeep SUVs.
The decline in Stellandis shares comes a day after the stock fell 12.5% in reaction to the automaker’s gloomy outlook for its North American operations. Stellartis — which makes Dodge and Ram cars — expects to post full-year profit margins of 5.5% to 7%, up from its previous double-digit guidance. To counter deteriorating conditions in the global automobile industry, automakers are planning cost-cutting measures and discounts, Yahoo Finance reporter Press Subramanian reports on market dominance d.
Meanwhile, the newly issued recall affects the 2020-2024 Jeep Wrangler 4xe and 2022-2024 Jeep Cherokee 4xe SUVs. The company said an internal investigation found 13 fires linked to the problem, but estimates only 5% of recalled vehicles pose a fire risk.
Barclays pulls no punches on Apple
Barclays analyst Tim Long dropped the mic on Apple ( AAPL ) this morning in a new note that called out weak demand for the iPhone 16.
Here’s what Lang said:
“A few weeks after the launch of Apple Insights, there was a lot of news about increased iPhone production in early July. Based on our recent supply chain channel tests, we believe AAPL may have cut about 3 million units of a key semiconductor component. iPhones in the December quarter, the earliest phase cut in recent history. If confirmed, we suggest softer demand for the IP16 globally in the first week of sales compared to last year, with longer-than-expected supply chain bottlenecks, particularly across the US and China Pointing to softer-than-expected demand.
Long reiterated his underweight rating on Apple (sell equal).
