Dow dives ahead of Powell’s speech; Nasdaq keeps growth stocks afloat

  • Tesla up as China sales nearly double in November – data
  • Speech by Fed Chairman Powell at 1:30 p.m. ET (6:30 p.m. GMT)
  • US private payroll growth slows in November – ADP
  • Dow down 0.47%, S&P down 0.13%, Nasdaq up 0.26%

Nov 30 (Reuters) – Wall Street was mixed on Wednesday, with the Dow Jones and S&P 500 falling and heavy growth stocks boosting the Nasdaq as attention turns to comments from Federal Reserve Chairman Jerome Powell later in the day.

Powell’s speech will be watched closely for signs of a slowing in the pace of central bank interest rate hikes, as well as to assess the overall health of the US economy.

“The market is expecting him (Powell) to say that maybe we won’t do the 75 basis point hike… when people listen to the Fed chair talk, they’re waiting for that little clue,” he said. said Joe Saluzzi, co-manager. or trade at Themis Trading in Chatham, New Jersey.

Hopes that the Fed will now raise rates in small increments and recent data indicating a slight cooling in prices have positioned the benchmark S&P 500 (.SPX) for its second consecutive month of gains.

The Dow Jones Industrial Average (.DJI) has gained 17.5% over the past two months, while the Nasdaq Index (.IXIC) has gained 4.2%.

“After the gains we’ve seen, you have investors taking a bit of money off the table today,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. “Again, nothing dramatic.”

Traders expect the Fed to hike rates by 50 basis points in December, with rates peaking in June 2023. FEDWATCH

High-growth companies Apple Inc (AAPL.O), Microsoft Corp (MSFT.O) and Alphabet Inc (GOOGL.O) rose between 0.1% and 1.0%.

Shares of Tesla Inc (TSLA.O) rose 0.3%, after China Merchants Bank International said November sales of Tesla in China were boosted by price cuts and incentives offered on its models 3 and Y.

Data on the day was mixed, with the ADP National Employment Report showing private employment rose by 127,000 in November, below expectations of 200,000 jobs, suggesting labor demand is picking up. cooled in a high interest rate environment.

Closely watched nonfarm payrolls data from the Labor Department is due Friday. A report showed job openings in the United States fell to 10,334 million in October from 10,687 million the previous month.

Another reading showed that the US economy rebounded stronger than initially thought in the third quarter.

“A mixed bag this morning. So I’m not getting much out of it, I’d like to see what Powell has to say,” Saluzzi added.

As of 12:07 p.m. ET, the Dow was down 157.90 points, or 0.47%, at 33,694.63, the S&P 500 was down 5.02 points, or 0.13%, at 3,952 .61, and the Nasdaq was up 29.04 points, or 0.26%, at 11,012.81.

3M Co (MMM.N) fell 3.1% amid weakness in its consumer business.

Biogen Inc (BIIB.O) jumped 4.2% after its experimental Alzheimer’s drug slowed cognitive decline in a closely watched trial.

Falling issues outnumbered advances by a 1.15-to-1 ratio on the NYSE and a 1.09-to-1 ratio on the Nasdaq.

The S&P index recorded three new 52-week highs and one new low, while the Nasdaq recorded 51 new highs and 120 new lows.

Reporting by Shreyashi Sanyal, Devik Jain and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D’Silva and Shounak Dasgupta

Our standards: The Thomson Reuters Trust Principles.

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