Stock Market News for Jan 5, 2024
U.S. stock markets closed mostly lower on Thursday following strong labor market data. Market participants remained concerned when first cut in interest rate will take place and are keenly waiting for the nonfarm payrolls data for December. Recently released mixed earnings data also dampened investors’ sentiment. The Dow managed to gain marginally, while both the S&P 500 and the Nasdaq Composite ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) was up by 10.15 points to close at 37,440.34. At intraday high, the blue-chip index was up more than 286 points. Notably, 16 components of the 30-stock index ended in positive territory, while 14 ended in negative zone.
The tech-heavy Nasdaq Composite finished at 14,510.30, declining 0.6% due to weak performance of large-cap technology stocks. The tech-laden index posted a five-day losing streak for the first time since Oct 12, 2022.
The S&P 500 fell 0.3% to finish at 4,688.68. The market’s benchmark index tumbled for a fourth straight session, reflecting the longest losing streak in over two months. Eight out of 11 broad sectors of the benchmark ended in negative territory while three in positive zone.
The Consumer Discretionary Select Sector SPDR (XLY), Energy Select Sector SPDR (XLE) and the Technology Select SPDR (XLK) dropped 0.7%, 1.8%, and 0.7%, respectively, while the Health Care Select Sector SPDR (XLV) rose 0.5%.
The fear-gauge CBOE Volatility Index (VIX) was up 0.6% to 14.13. A total of 11.13 billion shares were traded on Thursday, lower than the last 20-session average of 12.30 billion.
Mixed Earnings Data of Consumer Staples Sector
Lamb Weston Holdings Inc. LW posted solid second-quarter fiscal 2024 results. The bottom line came in at $1.45 per share, surpassing the Zacks Consensus Estimate of $1.40. Net sales amounted to $1,732.1 million, beating the Zacks Consensus Estimate of $1,695.5 million.
The Simply Good Foods Co. SMPL came out with quarterly earnings of $0.43 per share, beating the Zacks Consensus Estimate of $0.41 per share. The company posted revenues of $308.68 million, missing the Zacks Consensus Estimate by 0.2%.
Conagra Brands Inc. CAG came out with quarterly earnings of $0.71 per share, beating the Zacks Consensus Estimate of $0.67 per share. The company posted revenues of $3.21 billion, missing the Zacks Consensus Estimate by 1%.
Stock prices of Lamb Weston rose 0.3 and The Simply Good Foods jumped 7.9%. However, shares of Conagra Brands fell 1.9%. Lamb Weston and The Simply Good Foods currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The Department of Labor reported that weekly jobless claims decreased by 18,000 to 202,000 for the week ended Dec 30, lower-than the consensus estimate of 219,000. Previous week’s data was revised upward to 220,000 from 218,000 reported earlier. The latest data was the lowest in nearly three months. Continuing claims — people who already received government unemployment benefit and run a week behind the headline number — came in at 1.855 million for the week ended Dec 23, a decrease of 31,000 from the previous week.
Automatic Data Processing Inc. (ADP) reported that private sector payrolls in December came in at 164,000, surpassing the consensus estimate of 131,000.
U.S. commercial crude oil inventories decreased by 5.5 million barrels for the week ended Dec 29.
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Conagra Brands (CAG) : Free Stock Analysis Report
The Simply Good Foods Company (SMPL) : Free Stock Analysis Report
Lamb Weston (LW) : Free Stock Analysis Report
