The S&P 500 (^GSPC) was down about 0.23% in afternoon trade, while the Dow Jones Industrial Average (^DJI) was down nearly 0.2%. The tech-heavy Nasdaq Composite ( ^IXIC ) fell 0.5%. All three indexes were up to start the session. Investors digested economic data on Tuesday, including the Job Openings and Labor Turnover Survey (JOLTS), which found that jobs unexpectedly rose in September to 10.7 million from 10.28 million the previous month. Economists had expected openings to fall to about 10 million, which would be in line with the kind of cooling the Federal Reserve wants to see in the labor market. Meanwhile, October’s ISM manufacturing PMI fell to 50.2, while economists polled by Bloomberg had expected 50.0. The ISM manufacturing employment index rose to 50.0 from 48.7, as economists polled by Bloomberg estimated 53.0. The stock moves came after major indexes lagged on Monday as investors braced for the Federal Reserve’s interest rate decision this week. But stocks closed October on a high as the Dow posted its best monthly performance since January 1976, when the index gained 14.2 percent, data from Bespoke Investment Group showed. The Fed’s aggressive pace of rate hikes has weighed on markets for much of the year, leaving investors hoping for any sign that the central bank will depart from its hawkish stance. The Fed is widely expected to raise interest rates by 75 basis points on Wednesday at the end of its two-day policy meeting, but some analysts see the bank slowing the pace of hikes going forward. JPMorgan economist Michael Feroli sees “a step down from 75 basis points to 50 basis points and then 25 basis points before this tightening cycle ends. Any indication from the Fed [the] the terminal rate is lower or that the tightening cycle ends in 2022 is likely [be] are digested upward by stocks. The biggest risk to this view is that the CPI will be higher than expected next week or in December.” The story continues Whatever the size of December’s move, “the Fed is in a tough spot because they’re so data-driven. And it’s just unclear how quickly inflation will come down,” Public Markets Group head Lisa Erickson said on Yahoo Finance Live on Monday. On earnings and the company on Tuesday:
Uber (UBER): The ride-hailing giant posted a loss for the third quarter, but beat analysts’ estimates for revenue and posted a rise in bookings. Shares rose more than 14% in early trading. Pfizer (PFE): The drugmaker posted a better-than-expected quarter and raised its revenue outlook for the year, despite higher prices offsetting a slowdown in demand for COVID-19 vaccines outside the US. SoFi ( SOFI ): The digital bank reported a smaller-than-expected quarterly loss and revenue that beat analysts’ estimates. The fintech firm raised its guidance as the company added 4.7 million more customers through the end of the third quarter. Eli Lilly and Company ( LLY ): The drugmaker beat expectations for the third quarter but cut its outlook for 2022, citing currency and tax legislation. Abiomed ( ABMD ): The maker of small heart pumps has agreed to a nearly $17 billion acquisition by Johnson & Johnson ( JNJ ), as the deal gives J&J exposure to a high-growth medical technology segment.
Advanced Micro Devices ( AMD ), Airbnb ( ABNB ), Mondelez ( MDLZ ) and Clorox ( CLX ) are also scheduled to report on Tuesday. And the week will end with the October jobs report. The Labor Department report is expected to show monthly payrolls falling below 200,000, while economists polled by Bloomberg estimated 190,000 jobs were added or created last month. In energy markets, Brent crude, the international benchmark for oil prices, fell to $94.36 a barrel on Tuesday morning. Yields on the 10-year Treasury fell as much as 12 basis points below 4% before climbing back above that level later in the morning. U.S.-listed shares of Chinese companies including Alibaba ( BABA ) also rose on Tuesday as unconfirmed reports on social media swirled that the Chinese government may be moving to ditch its strict COVID policy. Elsewhere, the Toronto Stock Exchange resumed trading after a technical issue halted trading shortly after opening on Tuesday. — Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv Click here for the latest stock market news and in-depth analysis, including the events that move stocks Read the latest financial and business news from Yahoo Finance Download the Yahoo Finance app for Apple or Android Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn and YouTube
