The Dow Jones Industrial Average closed lower on Tuesday (Nov 1) after the US said job openings rose in September. This indicates that the US job market remains strong. And it could prompt the US Federal Reserve (Fed) to continue accelerating interest rate hikes.
The Dow Jones Industrial Average closed at 32,653.20 points, down 79.75 points, or -0.24%, the S & P500 closed at 3,856.10 points, down 15.88 points, or -0.41 %, and the Nasdaq index closed at 10,890.85 points, down 97.30 points, or – 0.89%.
The U.S. Department of Labor’s Bureau of Labor Statistics published the Job Openings and Labor Turnover Rate (JOLTS) survey. In September, a measure of demand in the labor market increased 437,000 jobs to 10.7 million. Contrary to analysts’ expectations, it dropped to 9.85 million jobs.
The JOLTS figure is at the attention of the Fed. It is seen as a measure of rigidity in the labor market. This is a factor in the Fed’s monetary policy and interest rates.
Anthony Saglimbeen, analyst at Ameriprice Michigan Financial said Investors acknowledge that the Fed wants to slow the labor market and employment. To reduce the heat of the economy and reduce inflation. But the latest available labor data indicates that the labor market is still very strong. And it could give the Fed a reason to keep raising interest rates.
Six of the 11 stocks in the S&P 500 closed in negative territory, led by the most interest rate sensitive tech stocks. Amazon fell by 5.52%, Microsoft by 1.71%, Apple by 1.75% and Alphabet by 4.27%.
However, energy stocks rose after WTI oil prices rose more than 2%, with Exxon Mobil up 0.99%, Halliburton up 0.21% and Conoco Phillips up 1, 34%. Chevron up 0.70%
Pfizer shares were up 3.06% after the company posted revenue of $ 22.6 billion in the third quarter, beating analysts’ estimates of $ 210 billion. This was brought about by the sale of Paxlovid, a drug for the treatment of COVID-19.
Shares of Uber Technologies were up 11.97% after the company raised its earnings forecasts for the fourth quarter, data pushed rival Uber’s shares, with Lyft up 3.48% and stocks. DoorDash shares up 3.61%.
Shares of Chinese companies listed on the New York Stock Exchange rose in hopes that China could reopen the country. After news that China has set up a committee to discuss zero-day easing of coronavirus measures, with JD.Com shares up 3.08%, Alibaba Group holding 3.59%.
Investors are keeping an eye on the outcome of the Fed’s monetary policy meeting on Wednesday, November 2, US time. o early morning Thursday November 3 Thai time as the market expects The Fed will raise interest rates by 0.75% at this meeting. and will raise interest rates to only 0.50% at the December meeting
