Trading mixed after job openings hint at cooling economy

Dec 5 (Reuters) – Wall Street was mixed on Tuesday, with the Nasdaq gaining and the S&P 500 dipping after fresh employment data bolstered bets that the Federal Reserve will cut interest rates as soon as March.
Data showed U.S. job openings dropped in October to the lowest level since early 2021, indicating that the labor market was easing, while U.S. services sector activity picked up in November.
“As interest rates rise and as demand slows, companies are pulling back on job openings, which is essentially what the Fed wants,” said Sam Stovall, chief investment strategist at CFRA Research in New York.
“The Fed probably is done raising rates, and the only question outstanding is when they start to cut,” Stovall said.
U.S. stock trading this week has been mixed after the S&P 500 rebounded nearly 9% in November. The index on Friday touched a four-month intra-day high.
Stock market investors widely expect the Fed will keep rates unchanged at its meeting next week. Interest rate futures also suggest a 65% probability of a rate cut by the Fed’s March meeting, according to the CME Group’s FedWatch tool.
On Friday, the more comprehensive non-farm payrolls report for November will offer greater clarity on the state of the labor market.
Megacap stocks rose as Treasury yields dipped to multi-month lows. Nvidia (NVDA.O), Amazon.com (AMZN.O), Tesla (TSLA.O) and Apple (AAPL.O) rose more than 1%.
Global markets will be swayed by greater volatility in 2024 as the Fed cuts benchmark interest rates fewer times than futures markets are pricing in, strategists at the BlackRock Investment Institute predicted in a panel discussion.The S&P 500 was down 0.12% at 4,564.31 points.
The Nasdaq gained 0.12% to 14,202.26 points, while the Dow Jones Industrial Average was down 0.24% at 36,117.78 points.
Of the 11 S&P 500 sector indexes, nine declined, led lower by materials (.SPLRCM), down 1.18%, followed by a 1.04% loss in energy (.SPNY).
The small-cap Russell 2000 index (.RUT) fell 1.2%, on track to end a four-day winning streak.
Take-Two Interactive Software (TTWO.O) fell 1.6% after a trailer of the latest installment of its best-selling “Grand Theft Auto” videogame franchise was released.
CVS Health (CVS.N) jumped 4.3% after forecasting 2024 revenue above Wall Street estimates, as the insurer expects to benefit from its expansion into health services.
Declining stocks outnumbered rising ones within the S&P 500 (.AD.SPX) by a 4.4-to-one ratio.
The S&P 500 posted 14 new highs and no new lows; the Nasdaq recorded 72 new highs and 55 new lows.
Reporting by Amruta Khandekar and Shristi Achar A in Bangalore and by Noel Randewich in Oakland, Calif.; Editing by Pooja Desai and Aurora Ellis
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