It was another choppy day as investors hesitated to make any big moves ahead of third-quarter earnings season, which kicks off tomorrow morning with big bank JPMorgan Chase (JPM, -0.8%).
"We are paying close attention to third-quarter earnings announcements along with management commentary to gain insight into potential issues surrounding the supply chain of companies and potential disruptions in getting goods or services to market along with company's ability to find workers," says Dustin Thackeray, chief investment officer at Crewe Advisors.
In economic news, the latest Job Openings and Labor Turnover Survey (JOLTS) showed that the number of job openings in the U.S. fell to a lower-than-expected 10.4 million in August.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
This was hardly market-moving, though, considering "that is just below the upwardly revised record highs (11.098 million) in the prior month," according to Jennifer Lee, senior economist at BMO.
Communication services (-0.9%) was the weakest sector, followed by healthcare (-0.5%) and technology (-0.5%).
As such, the Dow Jones Industrial Average ended the day down 0.3% at 34,378, the S&P 500 Index slipped 0.2% to 4,350 and the Nasdaq Composite gave back 0.1% to 14,465 – each marking a third straight loss.
Other news in the stock market today:
- The small-cap Russell 2000 rose 0.6% to 2,234.
- MGM Resorts International (MGM) jumped 9.6% after Credit Suisse analysts Benjamin Chaiken and Sarah Murray upgraded the casino stock to Outperform from Neutral (the equivalents of Buy and Hold, respectively). "MGM has gone through a transformation, recently announcing four transactions, and we believe the market is not giving full credit," they say. Specifically, they point to several M&A moves MGM has made recently, including selling its the remaining stake in real estate investment trust (REIT) MGM Growth Properties (MGP, +1.2%) for $4.4 billion, which it called "a major deleveraging event."
- Airbnb (ABNB, +3.7%) got an analyst-induced lift today, as well. Cowen analyst Kevin Kopelman lifted his outlook on the real estate rental stock to Outperform (Buy) from Market Perform (Hold), saying Wall Street's estimates for ABNB's 2022 and 2023 EBITDA (earnings before interest, taxes, depreciation and amortization) and gross bookings are conservative. He also believes Airbnb will boost its share of the lodging market to 11% by 2026, compared to 8% this year.
- U.S. crude futures eked out a 0.1% gain to finish at $80.64 per barrel.
- Gold futures edged up 0.2% to settle at $1,759.30 an ounce.
- The CBOE Volatility Index (VIX) retreated 0.8% to 19.85.
- Bitcoin prices fell 3.9% to $55,276.20. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.)
How to Prepare for 2022
It seems hard to believe, but 2022 is just around the corner.
"While a lot can still happen between now and the end of 2021, we don't think it's too early to start thinking about what stocks might do next year," say Jeff Buchbinder, equity strategist, and Ryan Detrick, chief market strategist for LPL Financial.
In addition to forecasts for higher-than-average economic growth and additional earnings gains in 2022 – both of which signal another strong year for stocks – they "expect interest rates to stay low enough to justify maintaining current valuations, which could set the stage for double-digit returns for the S&P 500 next year."
So how can you prepare? Consider being buyers on the dip, Buchbinder and Detrick note.
In addition to the relative bargains we've uncovered among Wall Street's most elite batch of dividend-paying names, we've also compiled a list of the best beaten-up tech stocks to buy right now. These companies have solid balance sheets and strong growth prospects, but thanks to the latest round of market turbulence, shares have pulled back to more attractive valuations. Check them out.
-
Thanksgiving 2024: How Grocery Taxes Impact Your Holiday Food BudgetFood Prices Some families are navigating high food prices influencing what’s on the table this Thanksgiving.
-
9 Year-End Money Moves to Make NowBoost your retirement savings, lower your taxes and get the most out of your health insurance.
-
Travel Stocks I've Got an Eye OnGoing places to gather experiences, learn and relax is what people do as income grows and these travel stocks are likely to benefit from that trend.
-
Why Is Warren Buffett Selling So Much Stock?Berkshire Hathaway is dumping equities, hoarding cash and making market participants nervous.
-
Airbnb Stock Slides on Soft Outlook: What to KnowAirbnb stock is sinking Friday after the travel company reported mixed results for its third quarter and provided a soft outlook.
-
If You'd Put $1,000 Into Google Stock 20 Years Ago, Here's What You'd Have TodayGoogle parent Alphabet has been a market-beating machine for ages.
-
Stock Market Today: Stocks Retreat Ahead of Nvidia EarningsMarkets lost ground on light volume Wednesday as traders keyed on AI bellwether Nvidia earnings after the close.
-
Stock Market Today: Stocks Edge Higher With Nvidia Earnings in FocusNvidia stock gained ground ahead of tomorrow's after-the-close earnings event, while Super Micro Computer got hit by a short seller report.
-
Stock Market Today: Dow Hits New Record Closing HighThe Nasdaq Composite and S&P 500 finished in the red as semiconductor stocks struggled.
-
Stock Market Today: Stocks Pop After Powell's Jackson Hole SpeechFed Chair Powell's Jackson Hole speech struck a dovish tone which sent stocks soaring Friday.
