BBBY - Jobs Data Weighs on All American Markets
Stocks fell Thursday after jobs data showed the labour market is still strong despite the Federal Reserve's interest rate hikes to tame inflation.
The Dow Jones Industrials paled 339.69 points, or 1%, to conclude Thursday at 32,930.08. It was weighed down by Walgreens, which lost 6.1% after earnings showed a $5.2 billion opioid litigation settlement drove a quarterly loss.
The S&P 500 slumped 44.87 points, or 1.2%, at 3,808.10.
The NASDAQ Composite Index slouched 153.52 points, or 1.5%, to 10,305.24. Bed, Bath & Beyond shed 29.89% after saying it's short on cash and considering bankruptcy, and crypto-friendly bank Silvergate Capital plummeted 42.7% after it disclosed major customer withdrawals. All three averages are on track to notch five weeks of losses
Stocks opened lower after the ADP private payrolls report showed that employers added 235,000 jobs in December, well above economist estimates. Wages also increased more than anticipated, another sign that the labour market remains hot. Later in the morning, weekly jobless claims came in below expectations and showed a drop in continuing claims.
On Friday, investors will review the December jobs report for updated data on employment and hourly wages. Since the report could have a big impact on the Fed's next moves, it has the potential to impact the market. Investors don't want to see big gains in wage growth, which could signal higher inflation.
Prices for the 10-year Treasury fell, raising yields to 3.73% from Wednesday's 3.68%. Treasury prices and yields move in opposite directions.
Oil prices advanced $1.05 to $73.89 U.S. a barrel.
Gold prices dulled $25.00 to $1,834.00 U.S. an ounce.