Traders work on the floor of the New York Stock Exchange during morning trading on October 04, 2023 in New York City.
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U.S. stock futures slipped on Wednesday evening as investors looked ahead to key jobs data.
Shares of Clorox slid 2% after the bell, following guidance from the company for its fiscal first quarter that was much lower than consensus. The consumer goods company is calling for an adjusted loss ranging from 40 cents to zero cents per share. Analysts polled by FactSet called for $1.29 per share in earnings.
In Wednesday’s regular trading, stocks ended the session higher. The S&P 500 added 0.81%, while the Dow rose 0.39% and snapped a three-day losing streak. The tech-heavy Nasdaq Composite was the outperformer of the three major averages, jumping 1.35%.
“I’ve been cautious all year. Obviously, we’re getting a little reprieve today, but I think it’s just that: It’s a brief reprieve,” said Liz Young, SoFi’s head of investment strategy, on CNBC’s “Closing Bell.”
Stocks were aided by a retreat in Treasury yields. The rate on the 10-year Treasury note slipped from highs last seen in 2007 after payroll processing firm ADP said that private job growth totaled 89,000 for September. That number came in well below the 160,000 estimate from Dow Jones, and it seemed to assure investors that the labor market is loosening.
Yields remain a focus for investors this week, especially as the bond market is sending warning signals.
The spread between the 2-year and 10-year Treasury yields ended Wednesday at about 31 basis points. The 2- and 10-year yield curve has been inverted since March 2022 – meaning short-term Treasury rates are higher than long-term rates. However, the spread between the two has begun to tighten or steepen, which some say is a sign of an oncoming recession.
“One of the things that we’ll be thinking about for the rest of the week is the re-steepening of the yield curve,” Young added.
Key jobs data that could move the market is on deck. Weekly jobless claims are due Thursday morning, while the main event for the market — September’s nonfarm payrolls — will be out Friday.
–CNBC’s Yun Li contributed reporting.