Stock Market Today: Dow ends lower as boost from rising rate-cut hopes wanes
Investing.com — The dow closed lower on Wednesday, extending its sluggish start this week even as further signs of slowing job markets boost hopes that sooner rather later rate Federal Reserve cut is on the horizon.
By 16:00 ET (21:00 GMT), the Dow Jones Industrial Average rose 70 points, or 0.2%, the S&P 500 fell 0.4%, and the NASDAQ Composite fell 0.6%.
Data from payroll processor ADP showed that private U.S. employers added just 103,000 jobs last month, down from a revised mark of 106,000 in October. Economists had forecast an increase of 130,000 jobs.
The data arrived a day after job openings dipped to their lowest mark in over two years in October and point to a slowing job market that could not only slow the economy but also force the Fed a rate cut early next year.
The slew of the jobs data will continue on Thursday and Friday with release of weekly initial jobless claims and nonfarm payrolls, respectively.
Energy stocks led the market lower, pressured by a fall in oil prices to below $70 a barrel, the lowest level since June on Wednesday, shrugging off a larger-than-expected draw in weekly U.S. inventories as a spike in gasoline supplies and record U.S. crude production weighed on sentiment.
Weekly U.S. inventories fell by 4.6M barrrels, compared with estimates for a decline of $1.03M, while gasoline supplies jumped by 5.4 barrels, well above expectations for a build of 1M.
The jump in gasoline supplies come just as data showed earlier this week that U.S. oil production hit a record high in September.
ExxonMobil (NYSE:XOM) fell more 1% despite detailing plans to increase the pace of its share buybacks after it closes its $60 billion takeover of shale producer Pioneer Natural Resources (NYSE:PXD).
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