FINWIRES · TerminalLIVE
FINWIRES

Equities Mostly Rise Intraday as Traders Parse Labor Market Data

By
Equities Mostly Rise Intraday as Traders Parse Labor Market Data

US benchmark equity indexes were mostly higher intraday as investors evaluated fresh labor market data and continued to monitor Middle East developments.

The Dow Jones Industrial Average was up 0.3% at 51,225.9 after midday Tuesday, while the S&P 500 rose 0.1% to 7,606.1. The Nasdaq Composite was little changed at 27,093.8. The indexes notched fresh closing highs in the previous session.

Among sectors, utilities paced the gainers intraday Tuesday, while communication services saw the biggest decline.

In economic news, US job openings hit their highest level in almost two years in April, while hiring and layoffs fell, official data showed.

"Job openings jumped to their highest level in nearly two years, but this likely overstates the strength of the labor market, as the increase didn't translate into a higher hiring rate," Oxford Economics said in a note. "The result should be taken with a grain of salt and doesn't suggest a sudden tightening of labor market conditions is ahead."

Official data are expected to show Friday that the US economy added 95,000 nonfarm jobs in May, compared with a 115,000 increase reported for the previous month, according to a Bloomberg poll.

West Texas Intermediate crude oil was up 1.6% at $93.59 a barrel intraday Tuesday, while Brent rose 1.1% to $96.04.

Israel and Lebanon kicked off high-stakes talks in the US as renewed hostilities between Israel and Iran-backed Hezbollah threaten to derail peace talks between Washington and Tehran, CNN reported.

Negotiations with Iran have been "going on continuously," US President Donald Trump said Tuesday.

"Where they lead, one never knows, but as I told Iran, 'It's time, one way or another, for you to make a deal'," Trump said in a social media post.

On Monday, Iranian state-affiliated outlet Tasnim reported that the country suspended talks with the US in retaliation to Israel's military action in Lebanon.

US Treasury yields were mixed intraday Tuesday, with the 10-year rate down two basis points at 4.46%, and the two-year rate little changed at 4.05%.

In company news, Hewlett Packard Enterprise (HPE) shares jumped nearly 16%, the second-top gainer on the S&P 500. Late Monday, the information technology company lifted its full-year outlook and reported stronger-than-expected fiscal second-quarter results.

Marvell Technology (MRVL) shares surged 29% intraday Tuesday after Nvidia (NVDA) Chief Executive Jensen Huang reportedly said Marvell could be the next chip company to join the trillion-dollar club.

Palo Alto Networks (PANW), Ulta Beauty (ULTA) and GitLab (GTLB) are expected to report their latest quarterly financial results after the closing bell Tuesday, along with others.

Gold was up 0.3% at $4,517.60 per troy ounce, while silver rose 0.4% to $75.54 per ounce.

Related Articles

Packaged Food Companies Face 'Tough' Setup Amid Weak Demand, Growing Costs, UBS Says
US Markets

Packaged Food Companies Face 'Tough' Setup Amid Weak Demand, Growing Costs, UBS Says

US packaged food companies' upcoming quarterly results are likely to highlight a "tough" setup for the industry amid weaker demand and increasing costs, UBS Securities said in a note e-mailed Tuesday.The brokerage flagged downside potential to Wall Street's projections for the back half of the year and beyond given mounting cost pressures. The industry at the same time is facing structural changes "that could materially shift the growth trajectory for some time," UBS analysts Peter Grom and Sona Fernandes said in the note to clients.Campbell's (CPB), J.M. Smucker (SJM), General Mills (GIS), Conagra Brands (CAG), Simply Good Foods (SMPL), and McCormick (MKC) comprise the brokerage's packaged food coverage. The companies are expected to report results over the coming weeks."As has been the case for some time, we expect top-line trends to remain under pressure for most (of the names), and when layering in cost pressures that have ratcheted higher, we see downside risk to Street numbers looking out to the back half of the year and beyond," Grom and Fernandes said.Campbell's faces a "negative" setup ahead of its results amid "demand trends (that are) yet to show meaningful improvement and cost pressures that could drive out year estimates lower," the analysts wrote.UBS sees an "unfavorable setup" for General Mills ahead of its results. "We believe (fiscal 2027) guidance will fall short of expectations driven by top-line growth that remains underwhelming, cost pressures that will likely offset benefits from (corporate strategy) savings, and lapping unique items such as the 53rd week, incentive comp, and a divestiture," Grom and Fernandes said.For Conagra, the fundamental setup into its latest results continues to be "challenged, as top-line trends remain underwhelming," with cost pressures expected to lead to fiscal 2027 outlook falling short of the Street's views at the midpoint, according to the note.Simply Good Foods' "demand trends remain under pressure and cost pressures remain elevated making it difficult to step in," Grom and Fernandes said.UBS sees J.M. Smucker and, to some extent, McCormick as "partial exceptions" in its downbeat industry outlook.J.M. Smucker "remains one of the few companies across our packaged food coverage where we see a path to organic sales growth and strong bottom-line delivery" looking out over the next 12 to 18 months, the analysts said. McCormick's fundamentals "remain better than most, but the company is also not immune to moderating category trends and cost pressures," according to Grom and Fernandes."In many ways, we think growth algorithms for the group could be permanently impaired, and when comparing valuation to other industries that have structural top-line concerns, we think there in fact could be room for further multiple compression," the analysts wrote.Price: $21.12, Change: $+0.04, Percent Change: +0.19%

$CAG$CPB$GIS$MKC$SJM$SMPL
Nvidia's GTC Taipei Announcements Offer Significant Growth Potential, Truist Says
US Markets

Nvidia's GTC Taipei Announcements Offer Significant Growth Potential, Truist Says

Nvidia's (NVDA) recent product announcements pose significant growth potential for the tech giant that marked its formal entry into the consumer PC processor market, Truist Securities said in a note emailed late Monday.Nvidia disclosed new semiconductor, system and software products at the GTC event in Taipei, Taiwan. The products included RTX Spark, a superchip for Windows laptops and desktops, and DGX Station, the AI deskside supercomputer for professionals.RTX Spark's launch would mark the tech giant's entry into the PC market.Nvidia's shares rallied 6.3% on Monday, and were up 0.4% intraday Tuesday.Nvidia's opportunity extends beyond the traditional central processing unit market where Intel (INTC) and AMD (AMD) compete today, Truist Managing Director William Stein said.Nvidia could capture significant growth in higher-cost graphics processing unit systems that "could be multiples of the client CPU market today," he wrote."We are most intrigued by the company's new DGX Station and RTX Spark computers that appear aimed at developing and running AI models locally without the need for datacenter resources," Stein wrote. "While it opens a significant (total addressable market for Nvidia), we believe the effort is more strategic, and focused on extending (its) reach into all aspects of AI model development, deployment, and processing."Truist reiterated its buy rating on Nvidia's stock with a price target of $307.Price: $225.53, Change: $+1.16, Percent Change: +0.52%

$AMD$INTC$NVDA
April Job Openings Reach Highest Since 2024 as Layoffs Drop
US Markets

April Job Openings Reach Highest Since 2024 as Layoffs Drop

US job openings hit their highest level in almost two years in April, while hiring and layoffs fell, official data showed Tuesday.Vacancies rose to 7.62 million in April from 6.89 million the month prior, reaching its highest reading since May 2024, the Bureau of Labor Statistics reported. The consensus was for a 6.87 million level in a survey compiled by Bloomberg.Private job openings increased to 6.84 million from 6.16 million sequentially in April. Vacancies jumped by 668,000 in professional and business services, but fell by 134,000 financial activities, according to official data."Job openings jumped to their highest level in nearly two years, but this likely overstates the strength of the labor market, as the increase didn't translate into a higher hiring rate," Oxford Economics Senior US Economist Matthew Martin said in remarks e-mailed to. "The result should be taken with a grain of salt and doesn't suggest a sudden tightening of labor market conditions is ahead."Hiring fell to 5.12 million in April from 5.54 million the month before, while the hiring rate eased to 3.2% from 3.5%, official data showed. Separations decreased to 4.98 million from 5.38 million, while layoffs dropped to 1.69 million from 1.88 million."For now, the labor market remains mostly stable," Martin said. "With the quits rate and the layoff rate ticking down in April, neither employees nor employers are in a hurry to make moves."Elevated oil prices driven by the Middle East conflict threaten to lower aggregate demand by "crimping" real incomes, likely prompting businesses to pull back on hiring intentions, according to Martin.Talks between the US and Iran are ongoing, CNN reported Tuesday, citing Iranian media outlets. On Monday, Tehran reportedly suspended talks with Washington in retaliation to Israel's military action in Lebanon. The US and Israel's war with Iran started at the end of February."For the Federal Reserve, this will mean a balancing act between the risks of a supply side shock to energy prices bleeding into core measures of inflation and the downside risks to the labor market," Martin said Tuesday, adding that Oxford Economics expects the US central bank to remain on the "sidelines" for the rest of the year.Official data are expected to show Friday that the US economy added 95,000 nonfarm jobs in May, compared with a 115,000 increase reported for the previous month, according to a Bloomberg-compiled consensus.