• Mon. May 20th, 2024

Dow Jones Drops 400 Points on Solid Jobs Data; Silvergate Dives 46% on Withdrawals of $8.1 Billion

Onzine Articles News

ByOnzine Articles News

Jan 23, 2023

The ADP employment data came in better than predicted, and the Dow Jones Industrial Average dropped by more than 400 points on Thursday. Cryptocurrency-focused Early Thursday, shares of Silvergate Capital (SI) dropped 46% after the bank announced.

During the crash of the crypto exchange FTX, it had to sell assets at a big loss to pay out around $8.1 billion in withdrawals. About 200 people, or 40% of the bank’s workforce, were fired. The business ultimately decided to shelve its intentions to issue its cryptocurrency.

ADP’s December National Employment Report reported more than twice the predicted rise of 145,000. The number of people who filed for unemployment benefits for the first time dropped sharply from 225,000 the week before to 204,000. Finally, the services PMI for December came in at 45.0, above the 44.4 expectation. But it still indicates a contracting market.

Several Firms to Release Quarterly Earnings

Several firms, including Dow Jones stock Walgreens Boots Alliance and Fortune 500 companies Conagra (CAG) and Constellation Brands (STZ), will release quarterly earnings Thursday morning. In the morning session, shares of Conagra rose by around 2%, while those of Constellation Brands fell by almost 3%. While the rest of the Dow rose, Walgreens’ shares dropped more than 4% despite the company’s better-than-expected profits and sales.

Today’s Stock Market

After the news that Amazon will be laying off more than 18,000 workers, shares of AMZN rose slightly. Tesla (TSLA), the market leader in electric vehicles, fell 4.6% on Thursday. Apple (AAPL) and Microsoft (MSFT) saw mixed results shortly after the market opened.

The Dow Jones stocks Cardinal Health (CAH), Deere (DE), Medpace (MEDP), and Neurocrine Biosciences (NBIX), as well as the Dow Jones companies Caterpillar (CAT), Chevron (CVX), and Walmart (WMT) are all excellent candidates for investor watchlists. Remember that investors should stay on the sidelines for the time being due to the market’s continued deterioration.

The stock of Neurocrine is featured on the IBD Leaderboard. Recently, IBD has featured firms like Caterpillar and Medpace as its Stock of the Day.

What’s Moving the Dow Today: Oil Prices and Treasury Yields

When the market opened on Thursday, the Dow Jones Industrial Average was down 1.2% from its pre-market fair value. Losses on the S&P 500 were 1.3%. The Nasdaq, on which technology companies heavily weigh, fell 1.5% during the morning session.

Invesco QQQ Trust tracks the Nasdaq 100, sank 1.5%, and SPDR S&P 500 ETF tracks the S&P 500, down 1.3% on Thursday morning.

Following the positive employment report released Thursday morning, the 10-year Treasury yield rose to 3.76%. It hopes to reverse its steep decline over the previous two days. Thursday morning saw a recovery in oil prices after they had dropped dramatically for two days in a row. With a weekly loss of almost 7%, West Texas Intermediate futures climbed by over 2% to trade over $74 per barrel.

Stock Market Correction

The Nasdaq composite index gained 0.7% and the S&P 500 gained 0.75 % on Wednesday. After then, a 0.4% increase in the Dow Jones Industrial Average followed.

Gains on Wednesday won’t alter the stock market’s long-term trajectory. Therefore, there is still a high degree of uncertainty associated with investing in the stock market. Put your most lofty 2023 goal on hold for the time being. Instead, now is the time to monitor market leaders across different industries, markets, and stocks.

Onzine Articles News

Onzine Articles News

OnZine Articles main author - Max Haydon

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