Stocks jumped higher out of the gate Wednesday thanks to the latest jobs data. By mid-afternoon, however, the main indexes had erased these earlier gains as oil prices crumbled.
Ahead of the open, ADP said the U.S. added 103,000 private payrolls in November, below economists' estimates for a gain of 128,000. The data also showed that annual wage growth slowed to its lowest level since 2021 for both job-stayers (+5.6%) and job-changers (+8.3%). The ADP jobs data is the latest sign that the hot labor market is starting to cool, and comes ahead of the Labor Department's monthly nonfarm payroll report, which will be released this Friday.
"The softer turn of recent labor market releases reduces the risk that inflation pressures revive due to wage-price issues, making it easier for the Fed to pivot to rate cuts in 2024," says Bill Adams, chief economist for Comerica Bank.
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.
The data sent the three main indexes higher to start the day. At the close, however, the Nasdaq Composite (-0.6% at 14,146), the S&P 500 (-0.4% at 4,549) and the Dow Jones Industrial Average (-0.2% at 36,054) were all in negative territory as focus shifted to sinking oil prices.
Energy stocks fall alongside oil prices
Indeed, U.S. crude futures crumbled 4.1% to $69.38 per barrel after data from the Energy Information Administration (EIA) showed gasoline inventories rose by more than 5 million barrels last week. Oil prices have been sliding in recent months and are down about 25% from their September highs near the $94 per-barrel mark.
Not surprisingly, energy stocks suffered today, with Diamondback Energy (FANG, -2.4%), Marathon Oil (MRO, -3.5%) and SLB (SLB, -2.9%) among the biggest decliners.
Mastercard announces major dividend hike
Elsewhere, Mastercard (MA) gained 0.4% after the credit card giant said its board of directors approved a 16% dividend hike. The company also disclosed a new $11 billion stock buyback program.
Mastercard is a solid choice among dividend stocks, having consistently paid shareholders since it went public in 2006. This is nearly as long as MA has been a member of the Berkshire Hathaway equity portfolio, with Warren Buffett & Co. initiating a stake in Q1 2011. The 4 million MA shares currently owned by Berkshire account for a minuscule 0.5% of the portfolio.
Bitcoin keeps rising
Bitcoin was another notable gainer Wednesday, rising 0.4% to $43,868 (Bitcoin markets don't close; price taken at 4 pm Eastern). The cryptocurrency has surged roughly 50% since late October on hopes the first spot bitcoin ETF (exchange-traded fund) could soon be approved. Current Bitcoin ETFs are tied to futures prices, which are where the cryptocurrency is expected to be trading in the future.
"The rally has been quite extraordinary even by Bitcoin's standards and highlights how excited the community is by the prospect of an ETF approval," says Craig Erlam, senior market analyst at OANDA. "Lower interest-rate expectations have almost certainly helped, but I think the ETF is still probably the primary driver."
Today's upside came even as JPMorgan Chase (JPM, -1.1%) CEO Jamie Dimon said during congressional testimony that he is "deeply opposed" to crypto. "If I was the government, I'd close it down," he added while speaking in front of the Senate Banking Committee.
Looking ahead to Thursday, weekly jobless claims will be released. Additionally, Broadcom (AVGO, -1.0%) and Lululemon Athletica (LULU, +0.8%) make an appearance on the earnings calendar.
Related content
- Will SCOTUS Strike Down Wealth Taxes?
- The Earnings Recession Is Over
- Amazon vs Walmart: Who Has the Cheapest Grocery Prices?
-
Stock Market Today: Stocks Rally Despite Rising Geopolitical TensionThe main indexes were mixed on Tuesday but closed well off their lows after an early flight to safety.
-
What's at Stake for Alphabet as DOJ Eyes Google's ChromeAlphabet is higher Tuesday even as antitrust officials at the DOJ support forcing Google to sell its popular web browser. Here's what you need to know.
-
Stock Market Today: Stocks Rally Despite Rising Geopolitical Tension
The main indexes were mixed on Tuesday but closed well off their lows after an early flight to safety.
-
Stock Market Today: Nasdaq Jumps Ahead of Nvidia EarningsIt was a mostly positive start to a new week of pricing in more Donald Trump.
-
Stock Market Today: Stocks Drop as Post-Election Party EndsIt was a red finish on Wall Street Friday with tech stocks selling off ahead of Nvidia's upcoming earnings event.
-
Stock Market Today: Stocks Slip After Powell Talks Rate CutsThe main indexes closed lower Thursday after Fed Chair Powell said there's no rush to cut rates.
-
Stock Market Today: Markets Waver as Inflation Continues to EaseStocks gave up early gains as waning consumer price inflation leaves rate-cut bets essentially unchanged.
-
Stock Market Today: Stocks Retreat on Renewed Inflation, Interest Rate QuestionsStocks were lower and yields were higher on Tuesday, with markets reflecting the uncertain transition from campaign promises to real-world policies.
-
Stock Market Today: S&P 500 Tops 6K as Election Rally EnduresThe S&P 500 closed just below the 6,000 mark on Monday.
-
Why Is Warren Buffett Selling So Much Stock?Berkshire Hathaway is dumping equities, hoarding cash and making market participants nervous.
