US Stock Market Update: Job Cuts and AI Spending Trends
10 months ago

The broad market exchange-traded fund SPDR S&P 500 ETF Trust ($SPY) was down 0.7% and the actively traded Invesco QQQ Trust ($QQQ) was 0.8% lower in Thursday's premarket activity after Microsoft (MSFT) and Meta Platforms (META) said they expect to increase spending on AI. US stock futures were also lower, with S&P 500 Index futures down 0.7%, Dow Jones Industrial Average futures slipping 0.5%, and Nasdaq futures losing 0.8% before the start of regular trading. US companies planned 55,597 job cuts in October, a decrease from September but higher than a year ago, with the aerospace and defense sector, especially Boeing, leading layoffs, as reported by Challenger, Gray & Christmas data on Thursday. Reports releasing at 8:30 am ET include the September personal income and outlays report, the weekly jobless claims bulletin, and the Q3 employment cost index. The Chicago PMI posts at 9:45 am ET, followed by the weekly EIA natural gas report at 10:30 am ET. In premarket action, bitcoin was up by 0.7% and the cryptocurrency fund ProShares Bitcoin Strategy ETF ($BITO) was 0.7% higher. Power Play: Industrial Industrial Select Sector SPDR Fund ($XLI) declined 0.4% while the Vanguard Industrials Index Fund ($VIS) and the iShares US Industrials ETF (IYJ) were inactive. Generac Holdings (GNRC) stock was up 5.5% before the opening bell after the company reported higher Q3 adjusted earnings and revenue, and lifted its 2024 net sales growth outlook. Winners and Losers: Consumer The Consumer Staples Select Sector SPDR Fund ($XLP) was down 0.1%, while the Vanguard Consumer Staples Fund ($VDC) was up 1.3%.

The iShares US Consumer Staples ETF ($IYK) was inactive, and the Consumer Discretionary Select Sector SPDR Fund ($XLY) lost 0.3%. The VanEck Retail ETF ($RTH) and the SPDR S&P Retail ETF ($XRT) were inactive. Li Auto (LI) shares were down 5% pre-bell after the company posted forecast-beating Q3 results but guided for a Q4 revenue outlook that trailed analyst estimates. Technology Technology Select Sector SPDR Fund (XLK) fell 1.1%, and the iShares US Technology ETF ($IYW) was 1% lower, while the iShares Expanded Tech Sector ETF ($IGM.US) was down 0.7%.

Among semiconductor ETFs, SPDR S&P Semiconductor ETF ($XSD) retreated 0.3%, while the iShares Semiconductor ETF ($SOXX) was 0.7% lower. ASE Technology Holding (ASX) shares were up nearly 3% in recent Thursday premarket activity after the company reported higher Q3 earnings and revenue. Financial Financial Select Sector SPDR Fund (XLF) slipped 0.1%.

Direxion Daily Financial Bull 3X Shares ($FAS.US) was down 0.3%, while its bearish counterpart Direxion Daily Financial Bear 3X Shares ($FAZ) was 0.3% higher. ING Groep (ING) shares were up 1.8% pre-bell Thursday after the company reported higher Q3 results and said it is expanding its shareholder distribution with an additional 2.5 billion euros ($2.72 billion) to help push its CET1 ratio towards a 12.5% target. Energy The iShares US Energy ETF ($IYE) was inactive, while the Energy Select Sector SPDR Fund ($XLE) was up by 0.3%. Cenovus Energy (CVE) stock was up 1.5% before Thursday's opening bell after the company reported forecast-beating Q3 gross sales. Health Care The Health Care Select Sector SPDR Fund ($XLV) retreated 0.6%.

The Vanguard Health Care Index Fund ($VHT) gained marginally by 0.04% while the iShares US Healthcare ETF ($IYH) was inactive. The iShares Biotechnology ETF ($IBB) was flat. Merck (MRK) stock was down 1.4% premarket after the company reported lower Q3 non-GAAP earnings and cut its guidance for 2024 non-GAAP EPS. Commodities Front-month US West Texas Intermediate crude oil rose 0.6% to $69.04 per barrel on the New York Mercantile Exchange.

Natural gas declined 1.3% to $2.81 per 1 million British Thermal Units. United States Oil Fund (USO) was up 0.2%, while the United States Natural Gas Fund (UNG) lost 0.3%. Gold futures for December retreated 0.4% to $2,789.40 an ounce on the Comex, while silver futures declined 1.2% to $33.67 an ounce.

SPDR Gold Shares ($GLD) lost 0.4%, and iShares Silver Trust ($SLV) was 0.9% lower..

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