Stocks finished mixed Tuesday, with the S&P 500 and the Nasdaq closing at fresh record highs, as investors looked to a series of labor market releases over the coming days to define the Federal Reserve's interest rate path.
The S&P 500 gained 0.05% to end the session at 6,049.88, while the tech-heavy Nasdaq added 0.40% to close at 19,480.91. The Dow Jones Industrial Average lost 76.47 points, or 0.17%, to finish the day at 44,705.53.
George Smith, portfolio strategist for LPL Financial, said that November once more lived up to its reputation for seasonal strength as an election-fueled November “Turkey Rally” delivered outsized returns for stocks.
"Turning the calendar ahead to December, momentum could continue for stocks as historically it has been a good month for stock market seasonals," he said. "These strong returns are historically often back-end loaded, hence the 'Santa Claus Rally' market axionym, that describes the idea that the final few days of December are a strong period for stocks."
Smith said that December overall is the second-best performing month since 1950 with a 1.6% average gain, behind only November, and is the third strongest over the past five years, behind November and July.
Updated at 11:42 AM EST
Edging lower
Stocks are mixed heading into the late-morning session, with the S&P 500 down 9 points, the Dow falling and the Nasdaq hitting a fresh intra-day high of 19,456.32 points.
Benchmark 10-year Treasury note yields were last seen trading at 4.217% following the October Jolts data, with 2-year paper changing hands at 4.184%.
AT&T (T) shares, meanwhile, were an outstanding gainer, rising 4% to $23.59 each after the wireless carrier updated investors on its three-year investment plan.
Related: AT&T stock jumps as CEO Stankey defends dividend in new growth plan
Updated at 10:09 AM EST
Jolted
U.S. job openings rose to 7.7 million in October, the Labor Department reported, a bigger-than-expected tally that suggests ongoing strength which could lead to lingering inflation pressures over the coming month.
The Labor Department's Job Openings and Labor Turnover report, better-known as Jolts, showed a 300,000 increase from the September reading, with the so-called quits rate rising to 2.1%, a level that suggests workers are still finding higher-paying jobs.
JOLTs job openings were above expectations and actually rose in October.
— CMG Venture Group (@CmgVenture) December 3, 2024
🔹 JOLTS Job Openings: 7.744M vs. 7.519M est. (7.372M prior*) pic.twitter.com/MTQU8Qklbh
Updated at 9:36 AM EST
Mixed open
The S&P 500 was marked 2 points lower, or 0.02% higher in the opening minutes of trading, while the Nasdaq slipped 30 points, or 0.15%.
The Dow was up 35 points while the mid-cap Russell 2000 edged 1 point, or 0.04% into the green.
S&P 500 Opening Bell Heatmap (Dec 03, 2024)$SPY -0.17%🟥$QQQ -0.04%🟥$DJI -0.02%🟥$IWM -0.19%🟥 pic.twitter.com/zpt9xB39X6
— Wall St Engine (@wallstengine) December 3, 2024
Updated at 9:00 AM EST
Martial law
South Korea's won fell to the lowest level against the dollar in more than two years Tuesday after President Yoon Suk Yeol declared martial law during a nationally televised address he said was justified by opposition Democratic Party moves to impeach him.
Yoon said move would allow him to “eradicate pro-North Korean forces and protect the constitutional democratic order.” South Korea hasn't had a martial law declaration since the country's infamous Coup d'etat in 1979.
The won was last marked more than 1% lower against the greenback following the surprise address, and was last seen trading at around 1,420 per dollar.
South Korea President Yoon Suk Yeol declares martial law in unexpected late night TV address https://t.co/1Dd3Zspj1G
— BBC Breaking News (@BBCBreaking) December 3, 2024
Updated at 8:27 AM EST
Cyber spendthrifts
Adobe Analytics said Cyber Monday spending rose 7.3% from last year to a record $13.3 billion, and expects online holiday sales to rise past $240 billion over the five weeks ending on December 31.
The group had earlier reported that online spending on Black Friday rose 10.2% from last year to a record $10.8 billion.
Related: Inflation won't stop shoppers on Black Friday this year
Updated at 7:14 AM EST
Steely resolve
U.S. Steel (X) shares tumbled in early trading after President-elect Donald Trump vowed to block the group's $15 billion takeover by Japan's Nippon Steel.
Trump posted on his Truth Social network last night that he is "totally against the once great and powerful U.S. Steel being bought by a foreign company", which was first unveiled in December of last year.
The takeover has since been referred to the Committee on Foreign Investment in the U.S. by President Joe Biden, which is expected to issue a report this month.
U.S. Steel shares were marked 8.5% lower in premarket trading to indicate an opening bell price of $37.49.
🇺🇸📊 Trump vows tariffs and tax breaks to boost U.S. Steel
— PiQ (@PiQSuite) December 3, 2024
Tickers of interest: $X
Donald Trump opposed Nippon Steel's proposed acquisition of U.S. Steel, vowing to block the deal and implement protective tariffs.
He emphasized that tax incentives and tariffs would strengthen… pic.twitter.com/GueSy9jm7D
Stock Market Today
Stocks ended higher on Monday, with both the S&P 500 and the Nasdaq reaching fresh all-time highs, as markets continued their post-election rally powered by bets on business-friendly policies, resilient economic growth and a dovish Federal Reserve.
At least two legs of that bull market stool will be tested this week, however, with three key job market readings over the next three days leading into Friday's crucial November employment report.
A stronger labor market, tied with data showing record consumer spending and travel over the Black Friday weekend, could renew concerns that the Fed will need a longer time frame to bring inflation back to its preferred 2% target, pushing interest rate cuts further into next year.
Fed Gov. Christopher Waller told an event in Washington last night that "policy is still restrictive enough that an additional cut at our next meeting will not dramatically change the stance of monetary policy, " while New York Fed President John Williams suggested more data monitoring was needed before the next move can be determined.
Fed Chair Powell is likely to address those concerns when he speaks at the New York Times DealBook Summit on Wednesday, as are the slate of Fed officials due to speak over the coming days and into the central bank's Dec. 18 rate decision.
Related: What's next for stocks after S&P 500 record high?
The CME Group's FedWatch pegs the odds of a December cut at around 72.5% but has trimmed bets on 2025 reductions from four to around two and a half as inflation pressures continue to linger.
Benchmark 2-year Treasury note yields, the most-sensitive to interest rate moves, were last marked at a 4.184% heading into the start of the Tuesday trading session, with 10-year notes trading at 4.219%.
The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.11% lower at 106.331.
On Wall Street, stocks are set for a muted open ahead of job openings data at 10 a.m. U.S. Eastern Time, with futures contracts tied to the S&P 500 priced for a 3-point opening bell gain.
Futures linked to the Dow Jones Industrial Average, meanwhile, suggest a 10-point dip while those tied to the tech-focused Nasdaq suggest a 23-point slip.
More Wall Street Analysts:
- Walmart analysts reset stock price targets ahead of Black Friday
- Analysts revamp Cisco stock price targets after earnings
- Analysts revisit Applied Materials stock price targets after Q4 earnings
In Europe, stocks were higher in the midday session, with the Stoxx 600 benchmark rising 0.46%. The focus remains on markets in France amid a vote of no confidence for the government of Prime Minister Michel Barnier and President Emmanuel Macron, which is expected later today.
Overnight in Asia, Japan's Nikkei 225 closed at a three-week high, with tech stocks leading the advance, while the regional MSCI ex-Japan benchmark rose 1.12% into the close of trading.
Related: Veteran fund manager sees world of pain coming for stocks
