Market Update: Job Cuts Surge as Major ETFs Experience Minor Fluctuations
2 months ago

In a recent update, the broad market exchange-traded fund SPDR S&P 500 ETF Trust ($SPY) saw a decrease of 0.2%, while the actively traded Invesco QQQ Trust ($QQQ) was down 0.3% during Thursday's premarket activity, as investors prepared for pivotal job data releases. US stock futures presented a downward trend, with S&P 500 Index futures declining by 0.2%, Dow Jones Industrial Average futures slipping 0.3%, and Nasdaq futures retreating 0.2% just before the regular trading session commenced. A report from Challenger, Gray & Christmas revealed that US companies planned a staggering 72,821 job cuts in September, marking a decline from August but significantly higher than the same month in the prior year.

Both the technology and healthcare sectors are leading the wave of layoffs, underscoring shifting economic dynamics. The weekly jobless claims report is set to be released at 8:30 am ET, offering further insights into the current labor market. At 9:45 am, the S&P Global US PMI composite final for September will be published, followed by the August factory orders release and the ISM Services Index for September at 10 am ET. In addition, the weekly EIA natural gas report will be available at 10:30 am ET, which will be crucial for investors in energy-related assets. Federal Reserve Presidents Raphael Bostic of Atlanta and Neel Kashkari of Minneapolis are scheduled to speak at 10:40 am ET, likely offering commentary that could impact market sentiment. In premarket action, Bitcoin rebounded by 0.9%, and the ProShares Bitcoin Strategy ETF ($BITO) increased by 1.1%, reflecting renewed interest in cryptocurrency investments amid market uncertainties. **Consumer Sector Highlights:** - The Consumer Staples Select Sector SPDR Fund ($XLP) slightly dipped by 0.02%, while the Vanguard Consumer Staples Fund ($VDC) observed inactive trading.

- The iShares US Consumer Staples ETF ($IYK) also remained inactive, and the Consumer Discretionary Select Sector SPDR Fund ($XLY) reported a drop of 0.5%. - The VanEck Retail ETF ($RTH) was inactive, and the SPDR S&P Retail ETF ($XRT) was down by 0.4%. Albany International ($AIN) faced a noticeable dip of over 2% in premarket trading on Thursday after the company revised its fiscal 2024 outlook downward. **Winners and Losers in Technology:** The Technology Select Sector SPDR Fund (XLK) and the iShares US Technology ETF ($IYW) remained flat, while the iShares Expanded Tech Sector ETF ($IGM.US) witnessed a decline of 0.6%.

In the semiconductor sector, the SPDR S&P Semiconductor ETF ($XSD) was inactive, and the iShares Semiconductor ETF ($SOXX) fell by 0.2%. - Wolfspeed ($WOLF) stocks plummeted by over 5% following a downgrade from Mizuho, which changed its rating from neutral to underperform, indicating concerns over future performance. **Healthcare Sector Dynamics:** The Health Care Select Sector SPDR Fund ($XLV) saw a retreat of 0.1%, whereas the Vanguard Health Care Index Fund ($VHT) slipped 0.03%.

In contrast, the iShares US Healthcare ETF ($IYH) recorded a modest gain of 0.4%, while the iShares Biotechnology ETF ($IBB) had inactive trading. Pennant Group ($PNTG) shares were down 1.3% premarket after the company announced its pricing for an underwritten public offering of 3.5 million common shares at $31 each, expecting gross proceeds of approximately $108.5 million. **Industrial Sector Performance:** The Industrial Select Sector SPDR Fund ($XLI) decreased by 0.2%, while both the Vanguard Industrials Index Fund ($VIS) and the iShares US Industrials ETF (IYJ) remained inactive.

- Southwest Airlines Co. ($LUV) shares rose by 1.5% ahead of the market open after SEC filings revealed that Director Rakesh Gangwal acquired 3.6 million company shares at prices ranging from $29 to $30 each, totaling over $100 million. **Energy Update:** The iShares US Energy ETF ($IYE) remained inactive, while the Energy Select Sector SPDR Fund ($XLE) advanced by 0.3%.

- Constellation Energy ($CEG) increased by 1.4% ahead of Thursday's opening bell after RBC raised its price target significantly from $214 to $272, showing optimism toward the company’s prospects. **Financial Sector Snapshot:** The Financial Select Sector SPDR Fund (XLF) retracted 0.3%, and the Direxion Daily Financial Bull 3X Shares ($FAS.US) experienced a decline of 0.9%.

Conversely, its bearish counterpart, the Direxion Daily Financial Bear 3X Shares ($FAZ), increased by 1% amid fluctuating investor sentiment. **Commodities Update:** In commodity markets, the front-month US West Texas Intermediate crude oil gained 1.7%, trading at $71.32 per barrel on the New York Mercantile Exchange.

Natural gas prices surged by 2% to $2.94 per 1 million British Thermal Units. The United States Oil Fund (USO) rose by 0.7%, whereas the United States Natural Gas Fund (UNG) fell by 0.2%. - Gold futures for December slightly dipped by 0.1% to $2,667 per ounce on the Comex, while silver futures dropped 0.7% to $31.71 an ounce.

The SPDR Gold Shares ($GLD) lost 0.4%, and the iShares Silver Trust ($SLV) experienced a decline of nearly 1%. With market dynamics continually shifting, investors remain vigilant, monitoring economic indicators and corporate performance as they seek opportunities in uncertain times..

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