On Tuesday, US benchmark equity indexes concluded the trading session in the red as reports indicated that the manufacturing sector remained entrenched in contraction territory for the month of August. This trend was highlighted by disappointing demand that negatively impacted new orders, as reported by data compiled from the Institute for Supply Management and S&P Global. Jefferies, in a recent note, commented on the current economic climate, stating, "Rate cuts will help, but it is looking more and more like it's going to take more than a handful of (25-basis-point) moves to get manufacturing going again." This sentiment underscores the challenges that the manufacturing industry currently faces and raises questions about the potential efficacy of upcoming monetary policy adjustments. Meanwhile, the S&P 500 has experienced a notable increase in quarterly earnings, which have risen by a double-digit percentage compared to the same period last year.
Oppenheimer Asset Management praised this development as a 'better-than-expected' reporting season that is nearing its conclusion. In the corporate landscape, key players like Zscaler (NYSE: $ZS), GitLab (NYSE: $GTLB), and HealthEquity (NASDAQ: $HQY) are slated to report their earnings following Tuesday's market close, drawing significant investor attention as the market anticipates how these companies will fare amidst the current economic conditions. In the commodities market, October’s West Texas Intermediate crude oil witnessed a decline, closing down by $3.21 to settle at $70.34 per barrel.
Similarly, November Brent crude, which serves as the global benchmark, saw a decrease of $3.91, closing at $73.61. This dip can be attributed to weak economic indicators originating from China, the conclusion of the US summer driving season, and the anticipated return of some oil supply from OPEC, effectively overshadowing the decline in production from Libya. In the technology sector, shares of Intel (NASDAQ: $INTC) plummeted by 9%.
As a result of this significant drop in share price throughout the year, Intel is now facing the possibility of being removed from the Dow Jones Industrial Average, a fact reported by Reuters. This shift reflects a growing sentiment among analysts and investors regarding the company's performance in the current operating environment. Moreover, in the beverage sector, Tilray Brands (NASDAQ: $TLRY) has finalized its acquisition of several craft breweries, including Hop Valley Brewing, Terrapin Beer, and Revolver Brewing, from Molson Coors Beverage Company (NYSE: $TAP).
Following the announcement, shares of Molson Coors saw an increase of 5.5%, while Tilray’s shares experienced a slight downturn, closing down by 1.8%. This information highlights the ongoing consolidations in the industry and the varying market reactions to such acquisitions. Overall, these developments illustrate the intricate dynamics currently at play in both the financial markets and the broader economy, all of which will require keen observation from investors and analysts moving forward..