Stock Market Reverses Lower As This Line Caps Gains; Jobs Cool; Bed Bath & Beyond Tumbles

The stock market bounced back at Wednesday’s open, as a weaker-than-expected jobs report helped to calm worries of rising interest rates. But indexes reversed lower. Earnings reports continued to show cautious consumers.




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Indexes erased early gains. The Nasdaq composite, which was up as much as 1%, fell 0.3%. The S&P 500 rose 0.3% and the Dow Jones Industrial Average also lost 0.3% around 11 am ET.

All three remain below their 50-day moving averages after violating those lines Tuesday.

Major stocks such as Apple (AAPL), Microsoft (MSFT), Amazon.com (AMZN) give Alphabet (GOOGLE) are below their 50-day lines in lackluster trading. Facebook parent Meta Platforms (META) has bucked the downward tide, jumping 5% into a test at its 50-day line.

Volume fell on the Nasdaq and was unchanged on the NYSE, compared with the same time on Tuesday.

Western intermediate crude oil fell 1.8% to $89.89 per barrel, on worries of weaker global demand. Oil prices have been rangebound since July.

The Energy Select Sector SPDR (XLE) is the stock market’s worst S&P sector performer today, down 1.2%.

The August ADP employment estimate reported 132,000 job gains, well below the Econoday forecast of 225,000. It was also much lower than July’s revised 268,000 increase, indicating some cooling in the tight job market.

The labor situation is one of the economic factors the Fed is watching to calibrate its monetary policy. A weaker employment situation could act as a brake on rising interest rates.

The ADP release is a precursor to Friday’s monthly nonfarm payrolls report, when economists are looking for 293,000 new jobs.

US Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 31696.24 -94.63 -0.30
S&P 500 (0S&P5) 3975.35 -10.81 -0.27
Nasdaq (0NDQC ) 11845.91 -37.23 -0.31
Russell 2000 (IWM) 183.62 -1.00 -0.54
IBD 50 (FFTY) 28.23 -0.16 -0.56
Last Update: 11:10 AM ET 8/31/2022

The yield on the 10-year Treasury note ticked higher after the report, and is now trading at 3.11%.

Stock Market Battered By Cautious Earnings

HP (HPQ) stock sold off 3.6% in heavy volume, hitting the lowest point since October 2021.

Late Tuesday, the maker of personal computers and printers met profit views but missed sales estimates for its fiscal third quarter. HP’s guidance for the current quarter was much lower than expected.

CEO Enrique Lores said the company faces “near-term market headwinds,” including a 20% drop in consumer PC revenue.

More signs of weakening consumer demand showed up in Chewy‘s (CHWY) July-ended quarter report. The online pet-products seller slightly missed sales forecasts and cut its outlook for the current quarterwarning that pet owners are cutting back amid economic uncertainty.

The stock slid 6% in heavy trading.

It was a much brighter outlook for Designer Brands (DBI).

The apparel chain beat July-quarter estimates and raised its full-year guidance. The stock bounced nearly 4% and is finding support around it 21-day exponential moving average.

Bed Bath & Beyond Rattled On Strategic Plans

Bed Bath & Beyond (BBBY) plummeted 23% as the troubled retailer continued a wild ride. The company just announced a new strategic plan that includes closing about 150 stores, cutting 20% ​​of its corporate and supply chain jobs, and reducing capital spending from $400 million to $250 million.

Executives also said the company has secured new financing, made management changes and plans to reshape its buybuyBaby business.

More importantly for investors, 12 million new shares may be offered in the coming months.

CrowdStrike (CRWD) made opening gains and was down 1.7%. The cybersecurity company beat profit and sales expectations amid strong activity. The stock is holding above its 200-day moving average as it tests resistance around that line.

The Innovator IBD 50 ETF (FFTY) was down 0.6%. CF Industries (CF) triggered a sell signal after falling more than 8% below its 113.58 buy point.

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