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Wall Street closed lower on Tuesday terminating a four-day winning streak. Market participants remained concerned regarding the health of the U.S. economy. Sudden hike in crude oil prices also heightened fear about renewed inflationary pressure. All three major stock indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.6% or 198.77 points to close at 33,402.38. The blue-chip index ended a four-day winning run. Notably, 24 components of the 30-stock index ended in negative territory and 6 in positive zone.
The tech-heavy Nasdaq Composite finished at 12,126.63, dropping 0.5% due to weak performance of large-cap technology stocks. The major loser of the tech-laden index was Micron Technology Inc. (MU - Free Report) as its stock price plummeted 3.9%. Micron currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 slid 0.6% to end at 4,100.60. Seven out of 11 broad sectors of the benchmark index closed in negative territory while four in green. The Energy Select Sector SPDR (XLE) tumbled 1.8% and the Utilities Select Sector SPDR (XLU) gained 0.5%.
The fear-gauge CBOE Volatility Index (VIX) was up 2.4% to 19.0. A total of 10.3 billion shares were traded on Tuesday, lower than the last 20-session average of 12.8 billion. The S&P 500 recorded 14 new highs and one new lows; and the Nasdaq registered 64 new highs and 238 new lows.
Oil Prices Spike
The Organization of Petroleum Exporting Countries and its associate members has taken a decision to reduce aggregate production by 1.16 million barrels per day starting from May. The new quota system will continue till the end of 2023.
This followed by a decision taken by Russia to cut crude oil production by 500,000 barrels per day till the end of 2023. Saudi Arabia said the decision of OPEC+ is a “precautionary measure” aimed to stabilize the global oil market in case of a recession in 2023.
On Apr 3, the future price of the U.S. benchmark – the West Texas Intermediate crude – jumped 6.3% to settle at $80.42 a barrel, marking its biggest daily gain since Apr 12, 2022. The future price of the global benchmark – the Brent crude – also climbed 6.3% to settle at $84.93 a barrel, reflecting its biggest daily gain since Mar 21, 2022.
Moreover, on Apr 4, WTI crude rose 0.5% to settle at $81.08 per barrel. Brent crude rose 0.5% to settle at $85.36 per barrel. Several economists and financial researchers have indicated that crude oil prices could reach $100 per barrel in near future.
Oil price is one of the major sources of inflation. Market participants are worried that inflation rate, which has declined considerably since its peak in June 2022, may spike once again. Despite a drop, the aggregate price level remains elevated.
Economic Data
In its monthly Job Openings and Labor Turnover Survey, the Department of Labor reported that job openings in February came in at 9.93 million, declining 632,000 from January’s downwardly revised data. For the first time since May 2021, job vacancies fell below 10 million. In January, the ratio of job openings to available worker was nearly 2 to 1. However, in February, that ratio dropped to less than 1.7 to 1.
Factory decreased 0.7% in February compared with the consensus estimate of a drop of 0.5%. January’s data was revised downward to a decrease of 2.1% from a decline of 1.6% reported earlier. New orders for manufactured durable goods declined 0.1% in February and new orders for manufactured non-durable goods dropped 0.4% in February.
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Stock Market News for Apr 5, 2023
Wall Street closed lower on Tuesday terminating a four-day winning streak. Market participants remained concerned regarding the health of the U.S. economy. Sudden hike in crude oil prices also heightened fear about renewed inflationary pressure. All three major stock indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.6% or 198.77 points to close at 33,402.38. The blue-chip index ended a four-day winning run. Notably, 24 components of the 30-stock index ended in negative territory and 6 in positive zone.
The tech-heavy Nasdaq Composite finished at 12,126.63, dropping 0.5% due to weak performance of large-cap technology stocks. The major loser of the tech-laden index was Micron Technology Inc. (MU - Free Report) as its stock price plummeted 3.9%. Micron currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 slid 0.6% to end at 4,100.60. Seven out of 11 broad sectors of the benchmark index closed in negative territory while four in green. The Energy Select Sector SPDR (XLE) tumbled 1.8% and the Utilities Select Sector SPDR (XLU) gained 0.5%.
The fear-gauge CBOE Volatility Index (VIX) was up 2.4% to 19.0. A total of 10.3 billion shares were traded on Tuesday, lower than the last 20-session average of 12.8 billion. The S&P 500 recorded 14 new highs and one new lows; and the Nasdaq registered 64 new highs and 238 new lows.
Oil Prices Spike
The Organization of Petroleum Exporting Countries and its associate members has taken a decision to reduce aggregate production by 1.16 million barrels per day starting from May. The new quota system will continue till the end of 2023.
This followed by a decision taken by Russia to cut crude oil production by 500,000 barrels per day till the end of 2023. Saudi Arabia said the decision of OPEC+ is a “precautionary measure” aimed to stabilize the global oil market in case of a recession in 2023.
On Apr 3, the future price of the U.S. benchmark – the West Texas Intermediate crude – jumped 6.3% to settle at $80.42 a barrel, marking its biggest daily gain since Apr 12, 2022. The future price of the global benchmark – the Brent crude – also climbed 6.3% to settle at $84.93 a barrel, reflecting its biggest daily gain since Mar 21, 2022.
Moreover, on Apr 4, WTI crude rose 0.5% to settle at $81.08 per barrel. Brent crude rose 0.5% to settle at $85.36 per barrel. Several economists and financial researchers have indicated that crude oil prices could reach $100 per barrel in near future.
Oil price is one of the major sources of inflation. Market participants are worried that inflation rate, which has declined considerably since its peak in June 2022, may spike once again. Despite a drop, the aggregate price level remains elevated.
Economic Data
In its monthly Job Openings and Labor Turnover Survey, the Department of Labor reported that job openings in February came in at 9.93 million, declining 632,000 from January’s downwardly revised data. For the first time since May 2021, job vacancies fell below 10 million. In January, the ratio of job openings to available worker was nearly 2 to 1. However, in February, that ratio dropped to less than 1.7 to 1.
Factory decreased 0.7% in February compared with the consensus estimate of a drop of 0.5%. January’s data was revised downward to a decrease of 2.1% from a decline of 1.6% reported earlier. New orders for manufactured durable goods declined 0.1% in February and new orders for manufactured non-durable goods dropped 0.4% in February.