In the latest trading session on Thursday, US equity indexes presented a mixed performance during a tumultuous midday session. This uneven activity was notably influenced by the industrial sector, responding to an unexpected deceleration in private jobs growth. The S&P 500 index saw a decline of 0.5%, settling at 5,493.2 points, while the Dow Jones Industrial Average marked a decrease of 0.9%, closing at 40,604.9.
In contrast, the Nasdaq Composite managed a slight gain of 0.1%, reaching 17,105.7, despite earlier dips during the trading day. While most sectors retreated intraday, the only exceptions were consumer discretionary and communication services, which showed resilience. Focusing on recent economic reports, the ADP Institute's employment report revealed a growth of 99,000 in private payrolls for August, a decrease from the prior month's increase of 111,000.
This figure was significantly lower than economists' expectations, which anticipated a growth of 145,000. In another economic indicator, initial jobless claims in the US fell to 227,000 for the week ending August 31, a decline from an upwardly revised figure of 232,000 from the prior week. Analysts had predicted a further decrease to 230,000 based on a survey compiled by Bloomberg.
Moreover, the Institute for Supply Management (ISM) reported an uptick in the US services index, which rose to 51.5 in August, edging up from 51.4 in July. This exceeded expectations, which had forecast no changes according to a Bloomberg survey. Similarly, the S&P Global US services index was revised upward to 55.7 for August, compared to the flash reading of 55.2, surpassing expectations that projected a downward revision to 55.1.
Treasury yields exhibited a downward trend, with the 10-year yield decreasing by 2.8 basis points to 3.74%, while the two-year yield fell by 2.4 basis points, trading at 3.75%. On the commodities front, West Texas Intermediate (WTI) crude oil prices saw an increase of 0.6%, reaching $69.58 per barrel.
Turning to company-specific news, Copart ($CPRT) announced late Wednesday that its fiscal Q4 earnings declined compared to the same period last year, failing to meet market expectations. Their sales figures for the quarter ending July 31 also fell short of forecasts, resulting in a significant drop of 7.1% in share prices during intraday trading, positioning it among the worst performers on both the S&P 500 and the Nasdaq.
In a significant transaction, McKesson ($MCK) has signed an agreement to divest its Canada-based businesses, Rexall and Well.ca, to Birch Hill Equity Partners. The financial details of this deal were not disclosed. However, the company's shares tumbled by 9.1% intraday, marking the steepest decline on the S&P 500 index.
On a more positive note, Merck ($MRK) announced the successful conclusion of negotiations with the pan-Canadian Pharmaceutical Alliance regarding its drug Welireg on August 30. This pivotal agreement moves the medication closer to potential public reimbursement across Canadian provincial and federal programs.
Consequently, Merck's shares saw an intraday increase of 2.5%, making it the top performer on the Dow. The current market dynamics illustrate the delicate balance between economic indicators and company-specific news, underscoring the complexities of today's trading environment. Investors are advised to remain vigilant as further economic data and corporate earnings reports continue to unfold..