Stock market falls despite higher jobless claims; Food and beverage stocks fall on earnings

The stock market fell on Thursday after jobless claims rose, but not enough to convince investors that the Fed will change its aggressive rate policy. oil giants Chevron (CLC) and Exxon Mobil (XOM) led the gains as food and beverage companies lowered profits.




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The Nasdaq composite traded down 0.1%, after initially rising. The Dow Jones Industrial Average fell 0.3% and the S&P 500 lost 0.2%. The Russell 2000 Small Cap Index lost 0.3%.

Volume rose on the Nasdaq and fell on the NYSE from the same time on Wednesday.

The yield on the 10-year US Treasury rose six basis points to 3.82%.

Stock market down due to rising jobless claims

Initial jobless claims from the Labor Department hit a five-week high of 219,000. Estimates called for an increase to 203,000 from 193,000 the previous week, according to Econoday.

“The labor market is still strong but is softening,” said Bill Adams, chief economist at Comerica Bank. “Unemployment insurance claims rose more than expected in the last week of September and it wasn’t just Hurricane Ian. At the state level, unemployment insurance claims fell by 1,400 in Florida as hurricane devastation prevented new claims from being filed.”

The rise in jobless claims was not high enough to convince investors that the Fed might abandon its rate hike campaign. On Thursday, 72.8% of investors expected the Fed to hike rates 0.75% at its Nov. 2 meeting, while 27.2% expected a 0.50% hike, according to FedWatch CBOE Tool.

The pivotal September payroll report is due Friday morning. Economists predict non-farm payrolls will rise by 250,000 and unemployment will remain at 3.7%.

U.S. crude oil rose 0.5% to $88.20 a barrel.

The Organization of the Petroleum Exporting Countries, along with Russia, collectively known as OPEC+, agreed on Wednesday to cut oil production by 2 million barrels a day. Oil prices have fallen recently on concerns about a slowing global economy.

The S&P Energy Select Sector ETF (XLE) rose 1.3%, making it the best performing component of the 11 S&P sectors. Chevron gained 1.7% while Exxon Mobil was up 1.5%.

XOM is building a new base in a consolidation with a buy point of 105.67. Exxon shares jumped on Wednesday after signaling that natural gas prices would support already strong third-quarter expectations.

Food and drink stocks fall despite earnings beat

European markets fell. London’s FTSE 100 fell 0.8%, while Germany’s DAX fell 0.4% and France’s CAC 40 traded down 0.8%.

In Asia, Japan’s Nikkei 225 gained 0.7%. The Hang Seng lost 0.4% and the Shanghai index fell 0.6%.

Conagra Brands (GAC) exceeded profit and revenue estimates. Shares initially jumped 1.2% but then reversed to trade down 2.4% in the stock market on Thursday.

The frozen food company is in consolidation with an official buy point of 37.07, according to MarketSmith. Executives noted that price increases are offsetting inflation concerns and supply bottlenecks have improved in the first quarter.

“We continued to deliver improved service and productivity while dealing with continued inflationary pressures and industry-wide supply chain challenges,” CEO Sean Connolly said in a press release. .

Constellation Brands (ZST) exceeded expectations for its second-quarter earnings report. The alcoholic beverage maker is one of the largest suppliers of beer in the United States and has seen positive profit growth over the past four quarters. STZ shares fell 1.8% following its results.

spice machine McCormick (MKC) gained 1.3% despite reporting earnings that fell short of Wall Street analysts’ estimates. Sales were slightly above estimates.

Peleton jumps after announcing plans to cut jobs

Interactive Platoon (PTON) jumped 1.9% after announcing plans to cut about 500 jobs, or about 12% of its remaining workforce. Chief executive Barry McCarthy said the company had six months to prove it could survive on its own. The shares are around 90% off their 52-week high.

Leader in electric vehicles You’re here (TSLA) was trading down 1.2% as Mizuho lowered its price target to $370. Among the industrialists of the Dow Jones, the titans of tech Apple (AAPL) and Microsoft (MSFT) the two traded slightly lower.

The Innovator IBD 50 ETF (FFTY) traded up 0.1%, driven by energy stocks Matador Resources (MTDR), Cenovus Energy (CVE) and Civitas Resources (CIVI).

Matador shares rallied above the buy zone from a handle cup base with a buy point of 58.68.

Follow Michael Molinski on Twitter @IMmolinski

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