The Dow Jones Industrial Average rose sharply from session lows on Monday afternoon to close unchanged. The tech-heavy Nasdaq composite bounced off lows as well but still ended nearly 1% lower. The S&P 500 pared earlier losses but closed down over 0.5%. All major benchmarks are now trading at or near two-year lows.
The Russell 2000 small-cap index slid 0.6%. (An earlier version of this story incorrectly said the index fell 5%.)
Crude oil took a pause from last week’s spike as recession fears offset OPEC’s upcoming cut. Oil was trading at $89.40 per barrel, down about two bucks.
The yield on the benchmark 10-year Treasury bond ticked up to 3.88%.
Volume on the NYSE and on the Nasdaq was lower compared with the same time on Friday.
Thursday’s Consumer Price Index (CPI) is on close watch to gauge the Fed’s action and the market direction.
The labor market is cooling off ,though perhaps not enough for the Fed to pivot or stop the current rate trajectory. The economy added 263,000 jobs in September as the unemployment rate dropped to July’s 2.5% level. CME FedWatch Tool now forecasts an 82.8% chance of a 75-basis-point hike in early November.
Dow Jones Leader Bucks PC Slowdown
Global PC shipments fell 15% to 74.3 million units, according to the latest IDC report.
HP (HPQ) shipments fell 27.8%, Lenovo dropped 16% and Dell Technologies (DELL) lost 21%.
Apple (AAPL) MacBook marked the sole bright spot in the survey, with shipments surging by 40.2%. Earlier, the Dow Jones component decided to scale back iPhone 14 production by 6 million units due to slowing demand for smartphones. Shares of Apple are up today but remain in correction.
Semiconductor funds and indexes are lower by more than 4% after the U.S. announced fresh curbs on China exports. Lam Research (LRCX) plunged nearly 7%. Nvidia (NVDA) shed 3% and Advanced Micro Devices (AMD) lost 1%.
Walmart (WMT) has bought robot company Alert Innovation to automate its deliveries and fulfill orders. The Dow Jones leader has been working with Alert since 2016, and the purchase should help the company compete with e-commerce giant Amazon.com (AMZN).
The move comes just as Amazon ends its experiments with autonomous delivery robot Scout. Shares of Walmart have notched a small gain today while Amazon has fallen over 1%. Both are in correction.
Elsewhere, shares of Immunic (IMUX) gapped up over 45% after the company closed a $60 million financing round. Funds will go toward existing clinical development of drugs to treat chronic inflammatory and autoimmune diseases.
Outside Dow Jones: Good And Bad News
IBD 50 component World Wresting Entertainment (WWE) is in a cup base with a buy point of 75.33. ON Semiconductor (ON) has undercut its base in today’s steep fall.
DoubleVerify (DV), Wingstop (WING) and RPM International (RPM) have fallen below their 50-day moving averages. DoubleVerify is on the IBD Leaderboard.
Earnings On Deck
Delta (DAL) and BlackRock (BLK) are set to report earnings on Tuesday. PepsiCo (PEP) is on deck Wednesday while Dow Jones components Walgreens (WBA) and Goldman Sachs (GS) are due Thursday.
Wells Fargo (WFC), Citibank (C) and Dow Jones stock JPMorgan Chase (JPM) close the first week of third-quarter earnings on Friday morning.
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