By Yasin Ebrahim
Investing.com -- The Dow slipped Thursday following a Powell-fueled rally a day earlier as investors weighed up mixed economic data underscoring weak manufacturing activity and a still resilient consumer ahead of a key jobs report due Friday.
Manufacturing activity slipped into contraction in November, falling below a reading of 50 for the first time since May 2020.
Treasury yields fell sharply as fears mount that the economy could be set for a deeper recession next year, even as the consumer remains resilient.
Financials, meanwhile, were the biggest drag on the broader market, paced by a decline in banking stocks as falling Treasury yields tend to weigh on net interest margin -- the difference between the interest income generated by banks and the amount of interest paid out to depositors.
Tech stocks modestly added to gains from a surge a day earlier, with Apple (NASDAQ: AAPL ) ending the day above the flatline despite ongoing worry about the impact of lower iPhone production.
Piper Sandler cut its forecast on fourth-quarter iPhone sales to 74 million units, down from a previous estimate of 83 million amid supply chain woes in China.
Netflix Inc (NASDAQ: NFLX ), however, continued to rack up gains, rising about 4%.
Elsewhere in tech, Salesforce (NYSE: CRM ) plunged 8% after unexpectedly announcing the departure of co-chief executive Bret Taylor.
On the earnings front, Costco Wholesale (NASDAQ: COST ) fell more than 6% after reporting weaker than expected sales for November, raising worries about consumer spending in the run-up to the key holiday quarter.
Economic data will likely continue to garner the bulk of attention as monthly jobs data is expected to show the economy produced less jobs in November than the prior month.
“Nonfarm payroll employment growth likely slowed to 180,000 in November from 261,000 in October as evidence continues to build that increasing uncertainty is affecting hiring activity,” Nomura said in a note.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.