U.S. stocks opened lower on Monday as investors reacted to the hot January jobs report that sparked fears of higher inflation and an eventual rate hike from the Federal Reserve.[0] The Dow Jones Industrial Average dropped 0.1%, or 35 points, while the S&P 500 fell 0.6% and the Nasdaq Composite ended 1% lower.[1]
The 10-year U.S. Treasury yield rose 10 basis points to 3.64%, while the 2-year yield rose 16 basis points to 4.46%.[2] Among active stocks, Chegg (CHGG) slumped on a dour outlook.[3]
International Trade in Goods and Services reported a trade balance of -$67.40B, worse than the -$68.8B expected, but improved from the -$61.00B in November.[4]
Investors will be watching for remarks on Tuesday from Federal Reserve Chair Jerome Powell, who will speak at the Economic Club of Washington, D.C. at noon ET.[5] Notable companies reporting this week include Disney (DIS), BP (BP), PepsiCo (PEP), Uber (UBER), Chipotle Mexican Grill (CMG), and AbbVie (ABBV).[6]
Additionally, Dell Technologies (DELL) announced it will eliminate about 6,650 jobs, or roughly 5% of its global workforce.[7] Meanwhile, oil prices ticked up, with West Texas Intermediate (WTI) crude up 0.7% to $73.93 per barrel.[1]
0. “U.S. stocks open lower adding to losses after shocking jobs report” MarketWatch, 6 Feb. 2023, https://www.marketwatch.com/story/u-s-stocks-open-lower-adding-to-losses-after-shocking-jobs-report-01675694113
1. “Stock market news today: Yields jump ahead of speech from Fed’s Powell” Markets Insider, 6 Feb. 2023, https://markets.businessinsider.com/news/stocks/stock-market-news-today-dow-sp500-bond-yields-jerome-powell-2023-2
2. “Stock Market On The Defensive Ahead Of Powell’s Comments; C3.ai Up 150% | Investor’s Business Daily” Investor’s Business Daily, 6 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/stock-market-catches-it-breath-after-recent-gains-onsemi-shows-strength/
3. “Dow futures slip 30 pts; seeking direction ahead of Powell speech By Investing.com” Investing.com, 7 Feb. 2023, https://www.investing.com/news/stock-market-news/dow-futures-slip-30-pts-seeking-direction-ahead-of-powell-speech-2996962
4. “Nasdaq, S&P futures rebound slightly as Wall Street awaits Jay Powell” Seeking Alpha, 7 Feb. 2023, https://seekingalpha.com/news/3932699-nasdaq-sp500-dow-jones-stock-market
5. “Nasdaq, S&P, Dow trade mixed as Wall Street awaits Jay Powell” msnNOW, 7 Feb. 2023, https://www.msn.com/en-us/money/markets/nasdaq-sandp-dow-trade-mixed-as-wall-street-awaits-jay-powell/ar-AA17c82Q
6. “Stock Market News Today: Indices Begin Week on a Low Note” TipRanks, 6 Feb. 2023, https://www.tipranks.com/news/stock-market-news-today-futures-down-on-solid-jobs-report-and-fed-speech-ahead
7. “Stock market news live updates: Stocks start week lower as investors ponder Fed’s rate path” Yahoo News, 6 Feb. 2023, https://news.yahoo.com/stock-market-news-live-updates-february-6-2023-111713832.html