Wall Street Braces for Weak Jobs Report as U.S. Government Shutdown Looms
Wall Street traders are anticipating a weak jobs market after the ADP report, which could influence the Federal Reserve's interest rate decisions. Meanwhile, the Labor Department's upcoming news report may be delayed due to the U.S. government shutdown. In corporate news, Corteva's stock plummeted 9.1% following a split announcement, while Lithium Americas' shares surged 23.3% after securing a $2.26 billion loan. Peloton Interactive's stock dipped 3.7% after unveiling a new AI and computer vision system. On the market front, the S&P/TSX composite index in Canada hit a new high, and major U.S. indices also reached record levels.
The ADP Research survey indicated that employers outside the U.S. government cut 32,000 more jobs than they added in September. This suggests a weak jobs market, which traders believe could influence the Federal Reserve's interest rate decisions. The upcoming Labor Department news report, scheduled for Friday, is likely to be delayed due to the U.S. government shutdown, further adding uncertainty to the economic outlook.
In corporate news, Corteva's stock sank 9.1% after announcing a plan to split into two companies. The agricultural chemical and seed company aims to separate its seed and crop protection businesses. Meanwhile, Lithium Americas' stock jumped 23.3% after the U.S. government agreed to let it draw from a previously announced $2.26 billion loan. The company is developing lithium projects in Nevada and Argentina.
Peloton Interactive's stock dropped 3.7% after unveiling an AI and computer vision system for cross training. The fitness company aims to expand its offerings and attract new customers. On the market front, the S&P/TSX composite index in Canada reached a new high, up 84.86 points at 30,107.67. In the U.S., stocks rose to new records on Wednesday, with the S&P 500, Dow Jones Industrial Average, and Nasdaq composite all reaching new highs. Nike's stock rose 6.4% after the company reported strong growth in North America apparel sales.
The ADP report's implications for the jobs market and potential interest rate changes by the Federal Reserve are being closely watched by traders. The upcoming Labor Department news report's delay due to the government shutdown adds uncertainty to the economic outlook. In corporate news, Corteva's split announcement and Lithium Americas' loan agreement drove significant stock movements. Peloton's new AI and computer vision system for cross training was met with a mixed market response, while the S&P/TSX composite index in Canada and major U.S. indices reached new highs.
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