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

US stocks drifted near all-time highs 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) and the tech-heavy Nasdaq Composite (^IXIC) hugged the flat line in early trade, coming off fresh records for the two gauges. The Dow Jones Industrial Average (^DJI) reversed earlier gains to fall about 0.1%.

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.

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

Traders are now pricing in about a 74% 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 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.

Political turmoil in France is also attracting market attention, with the government on the brink of collapse as it faces a parliamentary vote. With Germany also set for a snap election after a government breakdown, Wall Street is keeping a close eye on the two pillars of the EU.

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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.

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 the 1.9% in September.
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.
Good morning. Here’s what’s happening today.
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:

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