The Dow Jones Industrial Average dipped Tuesday morning as investors digested key economic data released shortly after the market opened. The Dow fell 0.6%, the S&P 500 lost 0.8%, and the tech-heavy Nasdaq Composite moved down 1.2% in early trading. The 10-year Treasury yield slipped to 3.74% and oil prices declined, with West Texas Intermediate futures trading around $67.20 per barrel.
Apple shares dropped 2.9% after Barclays expressed caution about demand for the upcoming iPhone 16. Google stock pared its gains to 0.4% after Pivotal Research initiated coverage on the search giant with a buy rating and a price target of 215, a 30% premium to Monday’s closing price. On the economic front, the Purchasing Managers’ Index (PMI) manufacturing index fell less than expected to 47.3 in September from August’s 47.9 reading.
Investors await the Institute for Supply Management (ISM) manufacturing reading, the Commerce Department’s construction spending report, and the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS), all due at 10 a.m. ET. Construction spending is expected to fall 0.3% in August, while job openings are anticipated to hold steady at 7.7 million. Acuity Brands rose 6.8% in morning trading, while McCormick climbed 0.3%.
Dow dips amid key economic data
Paychex stock was down 1% in morning action. Notable movers included Nvidia, Apple, and Tesla, highlighting the market’s volatility.
Nvidia stock fell 1.1%, holding above its 50-day line. Tesla dropped 1.7%, remaining close to a cup base’s 274 buy point. Among Dow Jones leaders, Amazon shares are nearing a 195.37 buy point in a cup with handle.
Microsoft shares, approaching a 441.85 buy point in a cup with handle, also dropped 2.1% Tuesday morning. Companies to watch include Arista Networks, which is in a buy zone, Texas Roadhouse, attempting to break past a 177.72 flat-base entry, and Wingstop, which recently topped a 431.03 entry but traded lower Tuesday morning. Today’s stock market activity is influenced by a mix of key economic data and corporate movements, with notable declines in major tech stocks including Apple and Tesla.
Investors remain watchful as they navigate the varying signals from economic indicators and corporate earnings.
