Investors Sell Stocks in Anticipation of Friday’s Employment Report

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Last Updated on December 1, 2022 by Bitfinsider

The market declined as investors awaited Friday’s employment report.

The Dow Jones Industrial Average fell 275 points, or 0.8%, on Tuesday. The S&P 500 increased by 0.4%, but the Nasdaq Composite increased by 0.5%.

The changes occurred when markets reversed previous gains following the release of the Core Personal Consumption Expenditures Index for October, a carefully watched indicator of spending. The index increased 0.2% in October, below the 0.3% average expectation compiled by Dow Jones from analysts. The 10-year Treasury yield fell following the release of the news.

It also signals a reversal from Wednesday’s swift and wide rise, when the Nasdaq Composite and the S&P snapped three-day losing streaks after Powell appeared to confirm a pause in the central bank’s tightening — a question that has persisted for weeks.

Chris Senyek, chief investment strategist at Wolfe Research, commented, “Whether intended or not, Powell gave a message that, in light of the tightening that has already been done, he is now more focused on the growth forecast and the job picture than on reducing inflation down to 2%.”

Thursday is the first trading day of the month, following a successful November for the main averages. The Nasdaq increased by 4.37 percent, marking its second consecutive month of gains for the first time since a three-month run that ended in December 2021. For the first time since August 2021, the S&P 500 and Dow climbed for a second consecutive month, gaining 5.38 and 5.67%, respectively.

Dollar General fell 8% after the company lowered its full-year estimate, citing rising costs. On the other side, Okta surged over 19% after the identity management software business offered an optimistic full-year financial outlook, while Five Below rose around 11% after reporting results that above expectations.

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