US Stocks Rise With Crude Oil Futures as Job Openings Drop to Lowest Since April 2020

Last Updated: Tuesday, October 4, 2022 4:28 PM | MT Newswires

US stocks rose alongside crude oil futures while government bond yields slumped Tuesday after job openings dropped to their lowest since April 2020.

The Dow Jones Industrial Average jumped nearly 3% to 30,316.32, the S&P 500 surged 3.1% to 3,790.93 and the Nasdaq Composite was over 3% higher at 11,176.41. Energy and financials were the biggest gainers, with all sectors in the green.

The 10-year yield dropped 1.4 basis points to 3.6% and the two-year rate slipped by less than one basis point to 4.1%.

In economic news, US job openings fell to almost 10.1 million in August, according to the Bureau of Labor Statistics, below expectations for nearly 11.2 million in a survey compiled by Bloomberg and down from close to 11.2 million reported in July. "This is the first official indicator to point unambiguously, if not necessarily reliably, to a clear slowing in labor demand," Pantheon Macroeconomics Chief Economist Ian Shepherdson said in a note Tuesday.

If jobs available continue to trend lower and core inflation eases, the Federal Reserve is not expected to raise interest rates by 125 basis points between now and the end of 2022, Shepherdson said. He expects an aggregate of a 100 basis-point increase at the November and December meetings, but said tightening by 75 points or even 50 points "now can't be ruled out."

New orders for US factory goods were flat in August, below expectations for a 0.2% increase in a survey compiled by Bloomberg and following a 1% decrease in July. Meanwhile, Redbook reported that US same-store retail sales were up 12.3% year-over-year in the week ended Oct. 1, larger than an 11% gain in the prior week due to an increase in fall apparel sales at the end of the week as temperatures turned cooler.

West Texas Intermediate futures surged 3.1% to $86.25 a barrel. OPEC+ will meet in Vienna Wednesday amid reports it plans to cut member quotas to support crude oil prices that have fallen below pre-Russia-Ukraine war levels as major central banks raise interest rates to reduce demand.

In company news, Twitter (TWTR) jumped over 22%, the most on the S&P 500, after resuming trading following a more than 3-hour halt Tuesday afternoon after Elon Musk confirmed he was reviving his $54.20-per-share acquisition bid for the social media company rather than continuing with his legal fight to scuttle the deal. According to a regulatory filing this afternoon, Musk said his advisors sent a letter to the Twitter board stating he "intends to proceed to closing" at the original terms of his $44 billion offer announced April 25.

Welltower (WELL) said third-quarter normalized funds from operations per diluted share are trending below the midpoint of the $0.82 to $0.87 guidance. Shares of the company dropped 1.5%, the worst performer on the S&P 500.

Illumina (ILMN) shares rose over 9%, the top gainer on the Nasdaq 100, after SVB Securities upgraded the stock to outperform from market perform and raised its price target to $270 from $220.

Gold was up 2% to $1,733.50 per troy ounce, and silver was up 2.3% to $21.07 per ounce.

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