In the latest trading session, US equity indexes displayed mixed outcomes amid a volatile midday landscape, as government bond yields experienced a notable decline triggered by an unexpected drop in job openings. The S&P 500 index stood relatively stable at 5,529.2, while the Nasdaq Composite managed a slight increase of 0.1%, reaching 17,152.9.
On the other hand, the Dow Jones Industrial Average edged lower, resting at 40,932.2. The utilities and communication services sectors emerged as frontrunners in terms of gains, indicative of a cautious risk-off sentiment among investors, whilst the energy sector struggled, leading the decliners. In terms of economic indicators, the latest data from the Bureau of Labor Statistics revealed that US job openings fell to 7.673 million in July.
This figure not only fell short of the anticipated rise to 8.100 million, as per insights from a Bloomberg survey, but also marked a decrease from the 7.910 million openings reported in June. Concurrently, Treasury yields experienced a descent, with the 10-year yield decreasing by 5.7 basis points to settle at 3.79%, while the two-year yield declined by 9.7 basis points, now sitting at 3.8%. Additionally, West Texas Intermediate crude oil saw an 0.8% drop, trading at $69.77 per barrel as the market absorbed these economic updates. Further reflecting the economic climate, new orders for US factory goods demonstrated a rebound of 5% in July—surpassing the predictions of a 4.8% increase made in a Bloomberg survey—following a 3.3% retraction in June. Furthermore, the CBOE's Volatility Index (VIX) registered a reduction of 1%, now at 20.52, after having seen gains earlier in the session. On the corporate front, Dollar Tree ($DLTR) experienced a stark intraday decline of 21%, making it the worst performer on both the S&P 500 and Nasdaq.
This downturn followed the company’s announcement revealing a decrease in adjusted earnings for fiscal Q2, coupled with a downgrading of its financial outlook for the remainder of the fiscal year. Meanwhile, Zscaler ($ZS) announced lower-than-anticipated non-GAAP earnings guidance for both fiscal Q1 and the entirety of fiscal year 2025.
This news resulted in Zscaler's shares slumping by 18% intraday, marking it among the steepest decliners on the Nasdaq. On a more positive note, Boeing ($BA) reported an estimated delivery of nine 737 Max jets to China in August, marking the most significant volume in nearly six years. Following this news, Boeing's shares surged by 2.4% intraday, taking the lead as the top performer on the Dow. As market participants digest this slew of economic data and corporate news, trading dynamics remain influenced by these developments, suggesting a cautious optimism entwined with underlying concerns over potential economic headwinds..