US benchmark equity indexes finished lower on Tuesday as traders analyzed recent economic indicators. The data revealed that the US services sector experienced faster-than-anticipated growth last month, suggesting a pickup in business activity. The Institute for Supply Management reported that the services purchasing managers' index showed marked improvement, a positive signal amid a backdrop where many prior economic indicators have shown signs of weakness.
Jefferies noted in a client note that this uptick in services activity is a welcome development. In employment news, US job openings rose to approximately 8.1 million in November, up from 7.84 million in October, surpassing the consensus estimate of 7.74 million compiled by Bloomberg through its survey. In the energy sector, February West Texas Intermediate crude oil saw a price increase of $0.69, closing at $74.25 per barrel.
Meanwhile, March Brent crude, the global benchmark, also gained $0.74, reaching $77.04. These price changes are attributed to concerns regarding tightening supply following China's compliance with US sanctions, coupled with colder weather in the US driving up demand for heating oil. Corporate developments also influenced market dynamics.
Paychex announced its acquisition of Paycor HCM in a deal valued at $4.1 billion, aimed at bolstering its human resources and payroll solutions, particularly enhancing its capabilities in artificial intelligence. Following the announcement, Paychex’s stock rose by 2.3%, while Paycor’s shares dipped by 3%. On the technology front, Meta Platforms experienced a decline of 2.1% after indicating that it would terminate its third-party fact-checking program in the US.
The company's move to enact a more personalized approach to political content on its platforms is part of its broader commitment to promote free expression among its user base..