US open: Stocks lower as Powell returns to the Hill

by | Mar 8, 2023

Wall Street stocks were in the red early on Wednesday as Federal Reserve chairman Jerome Powell kicks off another day of testimony on Capitol Hill.
As of 1530 GMT, the Dow Jones Industrial Average was down 0.22% at 32,782.99, while the S&P 500 slipped 0.03% to 3,985.18 and the Nasdaq Composite came out the gate 0.02% weaker at 11,527.93.

The Dow opened a whopping 73.47 points lower on Wednesday, building on the previous session’s almost 600 points loss.

Yesterday’s heavy selloff came after comments from Federal Reserve chairman Jerome Powell before the Senate, where he cautioned that the central bank’s terminal rate would likely now have to be raised even higher than previously thought as a result of stubbornly high economic data over the last few weeks.

Market participants will keep their attention on Powell on Wednesday, who began to speak before the House Financial Services Committee at 1500 GMT. The two-year Treasury note pulled back from 5% as the central bank’s chairman began his second day of testimony.

On the macro front, mortgage applications rose 7.4% in the week ended 3 March, according to the Mortgage Bankers Association of America, the first increase in four weeks and a rebound from the 28-year low hit a week earlier. Applications to refinance a loan surged 9.4% and those to purchase a home increased 6.6%.

Elsewhere, private sector employment in the US rose more than expected in February, according to the latest data from ADP. Employment increased by 242,000 from January, versus expectations for a 200,000 jump. The figures also showed that annual pay was up 7.2%.

With the labour market in mind, the number of job openings in the US declined at the start of 2023 albeit by less than anticipated. According to the Department of Labor, job openings fell 3.6% month-on-month to 10.82m. Economists at Barclays Research had anticipated a decline to 10.3m.

Finally, America’s shortfall on trade with the rest of the world widened by slightly less than anticipated in January. According to the Department of Commerce, in seasonally adjusted terms, the trade deficit in goods and services increased at a month-on-month pace of 1.6% to -$68.3bn. Economists had pencilled-in a deficit of -$69.0bn.

No major corporate earnings were slated for release on Wednesday.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones – Risers

Caterpillar Inc. (CAT) $250.18 1.64%
Dow Chemical Co. (DOW) $56.61 1.45%
Walgreens Boots Alliance, Inc. (WBA) $34.35 0.62%
Goldman Sachs Group Inc. (GS) $347.92 0.53%
Apple Inc. (AAPL) $152.32 0.48%
Chevron Corp. (CVX) $164.69 0.40%
Intel Corp. (INTC) $25.61 0.31%
Boeing Co. (BA) $208.41 0.24%
Amgen Inc. (AMGN) $229.18 0.20%
American Express Co. (AXP) $175.58 0.15%

Dow Jones – Fallers

Merck & Co. Inc. (MRK) $109.52 -1.57%
Microsoft Corp. (MSFT) $251.46 -1.06%
McDonald’s Corp. (MCD) $264.89 -0.84%
Walmart Inc. (WMT) $138.11 -0.82%
Verizon Communications Inc. (VZ) $37.63 -0.75%
Visa Inc. (V) $221.82 -0.60%
Johnson & Johnson (JNJ) $153.16 -0.60%
Procter & Gamble Co. (PG) $136.89 -0.49%
Home Depot Inc. (HD) $289.45 -0.43%
JP Morgan Chase & Co. (JPM) $138.09 -0.38%

S&P 500 – Risers

Molson Coors Beverage Co. Class B (TAP) $55.45 4.94%
Occidental Petroleum Corp. (OXY) $62.88 3.34%
Freeport-McMoRan Inc (FCX) $41.22 2.69%
H&R Block Inc. (HRB) $36.99 2.06%
Carmax Inc. (KMX) $70.11 1.90%
Crown Castle International (CCI) $128.64 1.68%
KLA-Tencor Corp. (KLAC) $381.64 1.66%
Caterpillar Inc. (CAT) $250.18 1.64%
Nordstrom Inc. (JWN) $19.85 1.64%
Digital Realty Trust (DLR) $104.52 1.53%

S&P 500 – Fallers

Brown Forman Corp. Class B (BF.B) $63.60 -4.01%
Edwards Lifesciences Corp. (EW) $76.32 -3.30%
Sysco Corp. (SYY) $74.25 -1.81%
eBay Inc. (EBAY) $43.25 -1.66%
Merck & Co. Inc. (MRK) $109.52 -1.57%
Medtronic Plc (MDT) $78.54 -1.51%
Regeneron Pharmaceuticals Inc. (REGN) $762.52 -1.46%
Centene Corp. (CNC) $66.98 -1.43%
Cooper Cos Inc. (COO) $331.68 -1.38%
Norwegian Cruise Line Holdings Ltd (NCLH) $15.75 -1.32%

Nasdaq 100 – Risers

KLA-Tencor Corp. (KLAC) $381.64 1.66%
Nvidia Corp. (NVDA) $236.38 1.50%
Lam Research Corp. (LRCX) $486.83 1.49%
CSX Corp. (CSX) $30.07 1.26%
Applied Materials Inc. (AMAT) $117.82 1.25%
J.B. Hunt Transport Services Inc. (JBHT) $183.24 1.22%
Skyworks Solutions Inc. (SWKS) $113.39 1.20%
Texas Instruments Inc (TXN) $173.83 1.03%
QUALCOMM Inc. (QCOM) $120.34 0.96%
Microchip Technology Inc. (MCHP) $82.83 0.88%

Nasdaq 100 – Fallers

Tesla Inc (TSLA) $180.44 -3.87%
Sirius XM Holdings Inc (SIRI) $3.97 -2.09%
Trip.com Group Limited (TCOM) $36.82 -1.89%
eBay Inc. (EBAY) $43.25 -1.66%
Regeneron Pharmaceuticals Inc. (REGN) $762.52 -1.46%
Mercadolibre Inc. (MELI) $1,248.00 -1.34%
Align Technology Inc. (ALGN) $330.88 -1.16%
Meta Platforms Inc. (META) $182.41 -1.14%
Workday, Inc. (WDAY) $184.63 -1.08%
Starbucks Corp. (SBUX) $102.24 -1.07%

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