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Stock market today: S&P 500, Nasdaq drift near record levels as Dow falls following key jobs data

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Stock market today: S&P 500, Nasdaq drift near record levels as Dow falls following key jobs data

US stocks traded mixed on Tuesday as investors digested fresh jobs data and waited for new Fedspeak to cement or dent growing hopes for future interest rate cuts.

The S&P 500 (^GSPC) fell about 0.2%, while the tech-heavy Nasdaq Composite (^IXIC) hugged the flat line in late morning trade, coming off fresh records for the two gauges. The Dow Jones Industrial Average (^DJI) reversed earlier gains to fall roughly 0.4%.

Job openings rose by 372,000 to 7.74 million in October compared to estimates of 7.52 million, according to BLS data released on Tuesday.

The Job Openings and Labor Turnover Survey (JOLTS) also showed fewer hires were made during the month while the quits rate, a sign of confidence among workers, rose to 2.1% from 1.9% in September.

The JOLTS data serves as the first in a wave of key signals this week that culminates in Friday’s all-important monthly US payrolls report.

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Traders are now pricing in about a 69% chance that the Fed lowers rates by a quarter percentage point at its Dec. 18 meeting, compared with 62% a day ago, per the CME FedWatch tool.

Those odds could shift after Fed policymakers Austan Goolsbee and Adriana Kugler appear later on Tuesday, which will set the stage for Fed Chair Jerome Powell’s panel discussion on Wednesday.

On the corporate front, Tesla (TSLA) stock slipped in early trading after shipments of the EV maker’s China-built models fell again, putting sales targets in doubt. In addition, CEO Elon Musk’s $56 billion pay deal was rejected again by a judge.

Meanwhile, shares in US Steel (X) fell about 8% on the heels of President-elect Donald Trump’s promise to “block” its $15 billion takeover by Japan’s Nippon Steel (5401.T, NPSCY). Trump said tax incentives and tariffs will enable the American steel giant to thrive on its own.

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  • Sector check: Communication Services gain while Industrials lag

    Communication Services (XLC), Health Care (XLV), and Energy (XLE) led Tuesday’s sector action. Markets traded mixed as traders assessed new jobs data and awaited more Fedspeak.

    Oil prices stood out, with WTI crude (CL=F) climbing 3% to trade above $70 a barrel. Brent crude (BZ=F), the international benchmark, also rose to trade just below $74 a barrel.

    Industrials (XLI) was the day’s biggest laggard, dragged down by shares of Aflec (AFL), which fell 4% as investors weighed disappointing outlook. Financials (XLF) and Consumer Staples (XLP) also fell.

  • Alexandra Canal

    US economy poised for ‘solid’ growth in 2025 as America ‘doesn’t import recessions’: BofA

    The US economy is on solid footing right now. Economists at Bank of America expect it to stay that way through next year.

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    In a research note released to reporters on Monday, BofA’s economics team led by Claudio Irigoyen projected the US economy will grow at an annualized rate of 2.4% in 2025, higher than current forecasts for 2% growth, according to the latest Bloomberg consensus estimates.

    This comes despite uncertainties surrounding the economic policies of President-elect Donald Trump, including campaign promises of tariffs on imported goods, tax cuts for corporations, and curbs on immigration, which economists have viewed as inflationary.

    Higher rates, coupled with a hawkish tariff policy, would strengthen the US dollar and create spillover effects to global financial conditions, representing “a major shock, not only for the US economy but the rest of the world,” according to BofA.

    But there’s one important caveat: The US is best prepared to weather any economic storm that follows Trump’s agenda.

    “We like to say that the US imports a lot of stuff, but it doesn’t import recessions,” Aditya Bhave, senior US economist at Bank of America, told Yahoo Finance in a separate press briefing on Monday. “It only exports recessions.”

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    Read more here.

  •  Josh Schafer

    Job openings rise more than expected in October

    Job openings rose more than expected in October as investors continue to dissect the pace of the labor market slowdown seen in the back half of 2024 amid questions over how much further the Federal Reserve will slash interest rates over the next year.

    New data from the Bureau of Labor Statistics released Wednesday showed 7.74 million jobs were open at the end of October, an increase from 7.37 million in September.

    The September figure was revised lower from the 7.44 million open jobs initially reported. Economists surveyed by Bloomberg expected Tuesday’s report to show 7.51 million openings in October.

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    The Job Openings and Labor Turnover Survey (JOLTS) also showed 5.31 million hires were made during the month, down from 5.58 million hires made during September. The hiring rate fell to 3.3% from 3.5% in September. Also in Tuesday’s report: The quits rate, a sign of confidence among workers, rose to 2.1% from 1.9% in September.

    Read more here.

  • Alexandra Canal

    Stocks hold near records

    US stocks opened mostly higher on Tuesday, hovering near all-time highs.

    The S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (^IXIC) each opened close to the flat line, coming off fresh records for the two gauges. The Dow Jones Industrial Average (^DJI) ticked up about 0.1%.

    Investors are bracing for a reading later on JOLTS job openings in October, the first in a wave of key data this week that culminates in Friday’s all-important monthly US payrolls report.

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  • Jenny McCall

    Good morning. Here’s what’s happening today.

  • Brian Sozzi

    Intel, day two

    Lots of analysis on the CEO shake-up at Intel (INTC) has been released, but this is not a one-day story.

    The path forward for Intel is vitally important for the country — the chip supply chain must be diversified beyond a singular reliance on Taiwan Semiconductor (TSM).

    But that path forward for Intel will be brutal, at best.

    Here are a couple of good points this morning from Evercore ISI analyst Mark Lipacis:

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    Below are some of my initial insights on Intel CEO Pat Gelsinger’s departure:

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Recruiting Journeys | Finance: Max Yamamoto ’24, Dimensional Fund Advisors

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Recruiting Journeys | Finance: Max Yamamoto ’24, Dimensional Fund Advisors

What was your recruiting journey like?

In the first year of my MBA, I applied to internship positions at investment management firms. Unlike consulting or investment banking, the process is not very structured. I found a bunch of firms by doing research on the internet, utilizing a list of employers created by the Career Development Office (CDO), and making cold calls to alumni or people inside the company. I applied to about 50 internships, and eventually landed one at Dimensional Fund Advisors.

I didn’t immediately get a return offer at the end of my summer internship. When I returned to SOM in the fall, I started to re-recruit for full-time jobs, but ultimately a position opened up at Dimensional Fund Advisors, and I accepted a full-time offer.

Which SOM classes prepared you for your current role?

Quantitative Investment, a core class for the Master’s in Asset Management program taught by Professor Toby Moskowitz, teaches you to research financial markets with a quantitative review. It’s directly related to what I’m doing right now, and has been very helpful. Another important core course was Asset Pricing Theory, taught by Professors Saman Majd and Jeffrey Rosenbluth; we learned how the market works and how you should view the market based on mathematical or financial theory. A third course is Employer, which is now called Workforce. What I learned in that class helped me understand how a company works, and prepared me to navigate professional culture in my internship and current role.

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Financial Services Legislation Is in the Spotlight as the 119th Congress Settles In | PYMNTS.com

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Financial Services Legislation Is in the Spotlight as the 119th Congress Settles In | PYMNTS.com

The 119th Congress has now been seated, and is poised to consider, to take up — or to scuttle — financial services legislation that may touch on everything from credit cards to earned wage access (EWA) to digital assets.

The incoming majorities belong to the Republicans, of course, and it’s no secret that president-elect Trump and other members of his party have expressed misgivings about the Federal Deposit Insurance Corp. (FDIC) and the Consumer Financial Protection Bureau (CFPB), and the roles and scope of those agencies are as yet undetermined.

The House Financial Services Committee now is being chaired by Rep. French Hill, R-Ark. The Senate Banking Committee is being chaired by Sen. Tim Scott, R-S.C. 

What May Be Up

As for what may still be considered “outstanding”:

Front and center will be what happens with the Credit Card Competition Act. It’s been a long road for the CCCA, which, among other things, would enable card payments to be routed over at least one network that competes with Mastercard and Visa. Since being introduced in 2023, the act has been stalled in Congress, and should it be taken up again, there’s no surety that it would make it through into law, but it may indeed come up for debate. Now vice president-elect JD Vance had signed on to the bill.  

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At issue will be the ways in which the bill would change the dynamics of the card industry. Supporters say that the routing provisions would open up competition. But as Karen Webster noted in a recent column, “Notwithstanding a lack of understanding of how dual routing would work for credit card transactions, the flaw in Sen. Durbin’s bill is a lack of understanding of how the current credit card ecosystem works. And, more fundamentally, how platform ecosystems ignite and scale — and are monetized.”

Separately, the Earned Wage Access Consumer Protection Act would define EWA providers and sets strict operational boundaries, specifically regulating both employee-sponsored programs and direct-to-consumer offerings.

Digital Assets

There have been various attempts to have legislation that would set frameworks for digital asset markets to be structured. One bill, the Financial Innovation and Technology for the 21st Century Act passed in the House but did not make it through the Senate. The act would, among other things, set standards for digital assets and consumer protections, and segregation of funds.

Crypto and artificial intelligence (AI), of course, will also be on the agenda.

In an interview with PYMNTS, Mike Katz, a partner in Manatt, Phelps and Phillips Financial Services Group, said that “despite the razor-thin Republican majorities, there is a growing bipartisan consensus in Congress around the need for thoughtful, innovation-focused crypto and AI legislation,” adding, “It will be interesting to see if any digital asset bills are part of the tax-and-border-focused reconciliation package already being discussed in Congress. I’d expect a strong stablecoin bill to move quickly given existing bipartisan support.”

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And he added: “Keep an eye out early in 2025 for a repurposed or chopped up version of the pro-crypto bill FIT21 [which passed the House with a large bipartisan majority in May]. Regardless of form or timing, new legislation will finally provide clarity on the questions of whether crypto assets are ‘securities’ or ‘commodities’ … and on which regulatory authority is charged with oversight.”

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Protecting Your Future: How Cognitive Decline Affects Financial Decision-Making | University of Denver

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Protecting Your Future: How Cognitive Decline Affects Financial Decision-Making | University of Denver

RadioEd co-host Emma Atkinson sits down with medical doctor and finance expert Eric Chess to break down why financial decisions can be an early indicator of cognitive decline.

Podcast  •
News  •

Hosted by Jordyn Reiland and Emma Atkinson, RadioEd is a triweekly podcast created by the DU Newsroom that taps into the University of Denver’s deep pool of bright brains to explore the most exciting new research out of DU. See below for a transcript of this episode.

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Show Notes

As we get older, things change. Our priorities shift, viewpoints and opinions evolve, and our bodies—and brains—age.  

Many of these changes are good—we can celebrate the process of aging as one that invites wisdom and joy. But there are natural consequences of getting older, and one of those consequences is cognitive decline. 

Eric Chess is a former medical doctor who has also earned degrees in law and business. Chess is the director of the Paul Freeman Financial Security Program at DU. He seeks to identify the earliest signs of cognitive impairment—and works to protect the lives and financial assets of older people experiencing cognitive decline. 

Dr. Eric Chess is a physician, lawyer and professor with a focus on prevention, comprehensive well-being, financial security and older adults. He has over a decade of

Dr. Eric Chess.

 experience in internal medicine practice (board certified), as a hospitalist and as an outpatient physician. He is currently a Clinical Professor at the University of Denver’s Knoebel Institute for Healthy Aging, serving as the founder and director of Aging and Well-being/The Paul Freeman Financial Security Program. Additionally, he serves as an adjunct Professor at the University of Denver’s Sturm College of Law and Daniels College of Business. Dr. Chess has an undergraduate degree in economics and political science, and a graduate law degree with experience as an attorney and economic consultant. 

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The Knoebel Institute for Healthy Aging creates and implements solutions for aging issues through multidisciplinary research, education and outreach by serving as an information clearinghouse for media on matters related to aging; educating and training a diverse workforce to serve a rapidly aging population; and promoting innovation, research and business development related to aging. 

The Paul Freeman Financial Security Program combines the expertise of faculty, researchers and students at the University of Denver. Their interdisciplinary team of researchers in law, finance, psychology, social work, business, neuroscience, and medicine is led by Eric Chess, MD, JD. Goals of impact include four main areas: Research and Development; Outreach and Collaboration; Education; and Policy. Part of the program’s core mission is to address the need for more impactful solutions regarding financial exploitation and fraud of older adults. Target areas currently include developing a financial vulnerability scale, leading a state-wide collaboration, developing a financial-protective team legal instrument, and addressing the significant transfer of wealth affecting older adults and potential future generations and clients. 

More Information:

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