Stock market today: Wall Street opens lower as weak stretch continues
By Elaine Kurtenbach And Matt Ott, The Associated Press on September 6, 2023.
NEW YORK (AP) – Stocks are opening lower on Wall Street, continuing a weak stretch on this holiday-shortened week. The S&P 500 slipped 0.4% in the early going Wednesday. The Dow fell 131 points, or 0.4%, and the Nasdaq composite gave back 0.4%. Crude oil prices were stable and Treasury yields were little changed. Roku jumped 12.5% after saying it would cut 10% of its staff. The company also raised its forecast for quarterly revenue. Later in the morning the Institute for Supply Management will release its latest report on the services sector. GameStop and Dave & Buster’s will release their latest results after the bell. THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below. Wall Street is on track for a modestly lower open Wednesday in a holiday-shortened week with so far little in the way of market-moving news. Futures for the S&P 500 and the Dow industrials were both off 0.2% before the bell. Coming off the Labor Day holiday in the U.S., investors have few major economic reports to look forward to this week, while the latest round of corporate earnings is essentially finished. The Institute for Supply Management releases its latest report on the U.S. services sector later Wednesday. The service sector employs most Americans and is a big component of the economy. Its health could provide more insight into how inflation is affecting consumer spending, which has been stronger than expected under the weight of extended inflation. Roku shares tumbled 13% in off-hours trading after the streaming company said it is cutting about 10% of its employees, or 360 people, as it looks to lower expenses. Major airlines are down after several predicted rising costs for fuel. Southwest is down 4%, GameStop and Dave & Buster’s report earnings after the bell Wednesday. The dominant economic theme continues to be inflation and interest rates, which the Federal Reserve has boosted in an effort to bring down prices. Investors are hoping that the Fed might moderate interest rate increases going forward as inflation has been easing for months. Wall Street expects the Fed to hold its benchmark interest rate steady at its next meeting later in September. Investors are mostly betting that the central bank will maintain that pause through the rest of the year. The central bank has raised its main interest rate aggressively since 2022 to rein inflation back to the Fed’s target of 2%. Several measures of inflation have gotten closer to that target and the economy is still growing, alleviating concerns that the rate hikes might push the U.S. economy into recession. Elsewhere, losses in Hong Kong were trimmed by surging prices for heavyweight property companies after a Chinese media report raised hopes for new measures to prop up the real estate sector. The official newspaper Securities Times ran an article urging that restrictions on sales of property in smaller cities be lifted. Such limits have been used to prevent markets from overheating due to speculative buying, but the long slump in the industry justifies a rollback of those precautions, the article said. Chinese real estate developers have been struggling to meet their payment obligations after the government cracked down on lending and the market slowed during and after the pandemic. Country Garden, an industry leader facing massive liabilities in the slowing market, gained 20.8%. The developer announced Tuesday that it had managed to avoid defaulting on debt payments within the grace period after missing the payment deadline last month. China Evergrande Group’ s shares rocketed 80%. The troubled Chinese real estate developer has $340 billion in debt and has asked a U.S. court to approve a restructuring plan for foreign bondholders. Hong Kong’s Hang Seng edged less than 0.1% lower to 18,449.98 while the Shanghai Composite index was 0.1% higher at 3,158.08. Tokyo’s Nikkei 225 advanced 0.6% to 33,241.02. In Seoul, the Kospi declined 0.7% to 2,563.34. The S&P/ASX 200 in Australia slipped 0.8% to 7,257.10 after the government reported the economy grew at a 2.3% annual pace in the last quarter. India’s Sensex shed 0.3%. In Europe at midday, Germany’s DAX and Britain’s FTSE each lost 0.5%, while the CAC 40 in Paris tumbled 0.9%. U.S. benchmark crude oil gave up 16 cents to $86.53 a barrel in electronic trading on the New York Mercantile Exchange early Wednesday. It gained $1.44 on Tuesday. Brent crude, the pricing standard for international trading, shed 35 cents to $89.69 a barrel. In currency dealings, the dollar inched down to 147.32 Japanese yen from 147.73 yen late Tuesday. The euro rose to $1.0738 from $1.0721. On Tuesday, the S&P 500 fell 0.4%, while the Dow Jones Industrial Average declined 0.6%. The Nasdaq slipped 0.1% and the Russell 2000 slid 2.1% to 1,880.45. ___ 27-26
