Stock Market Today (8/30/22): Stocks Sink on Strong Economic Data – Kiplinger’s Personal Finance

There was a glimmer of hope at Tuesday’s open that today might be the day stocks reverse their recent downward trend. But that was dashed mid-morning when the major market indexes took a decisive turn lower after a pair of economic reports poured cold water on expectations the Fed might slow its rate-hiking campaign anytime soon. 

Specifically, data from the Labor Department this morning showed the number of job openings in the U.S. rose to 11.2 million in July from 11 million in June, while those quitting their positions were little changed at 4.2 million. Additionally, the Conference Board’s consumer confidence index spiked to 103.2 in August from July’s 95.3, due in part to falling gas prices, the first time this value has been above its benchmark of 100 since May.

“With consumer confidence climbing higher as gasoline prices continuing to inch lower, and providing an extra $100 dollars in consumer pockets, coupled with indications that the labor market remains tight, the Federal Reserve has yet to see the ‘pain’ necessary to tamp down demand,” says Quincy Krosby, chief global strategist for independent broker-dealer LPL Financial. ” For an inflation-fighting central bank, what’s good news on Main Street now makes the job to rein in inflation that much more difficult.”

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By the close, the Nasdaq Composite had slumped 1.1% to 11,883, the S&P 500 Index had given back 1.1% to 3,986, and the Dow Jones Industrial Average was down 1.0% at 31,790.

Other news in the stock market today:

  • The small-cap Russell 2000 slumped 1.5% to 1,855.
  • U.S. crude futures plunged 5.5% to finish at $91.64 per barrel.
  • Gold futures fell 0.8% to end at $1,736.30 an ounce.
  • Bitcoin slipped 0.7% to $19,960.36. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.) “Risk aversion is firmly back in place and that sent Bitcoin below the $20,000 level,” says Edward Moya, senior market strategist at currency data provider OANDA. “If the broad selloff on Wall Street intensifies, Bitcoin is looking very vulnerable here.”
  • Energy stocks tumbled alongside oil prices today. Among the day’s biggest losers were Chevron (CVX, -2.4%), Halliburton (HAL, -4.9%) and Diamondback Energy (FANG, -3.7%).
  • Best Buy (BBY) rose 1.6% after the electronics retailer reported earnings. In its second quarter, BBY recorded higher-than-expected earnings of $1.54 per share and revenue of $10.3 billion. Still, CFRA Research analyst Kenneth Leon kept a Hold rating on Best Buy, noting that the economic downturn is weighing on demand for consumer electronics. “Highest comparable sales came from appliances (17%, …….

    Source: https://www.kiplinger.com/investing/stocks/605159/stock-market-today-083022-stocks-sink-on-strong-economic-data

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