U.S. stocks are sinking at the start of a week full of updates on the economy’s strength. The S&P 500 slipped 0.6% in early Tuesday trading, coming off a winning week that had carried it to the cusp of its all-time high. The Dow Jones Industrial Average was down 199 points from its own record set before Monday’s Labor Day holiday. The Nasdaq composite slipped 0.7%. Treasury yields were also sinking ahead of a report coming later in the morning on U.S. manufacturing. U.S. Steel’s stock fell after Vice President Kamala Harris came out against its buyout by a Japanese rival.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
(AP) — Wall Street was poised to open with losses Tuesday, kicking off a holiday-shortened week that features another hefty slate of earnings and the government’s latest jobs report.
Futures for the S&P 500 and the Dow Jones Industrial Average were each down 0.5% before the bell.
Shares of U.S. Steel tumbled 4.4% after Vice President Kamala Harris told a crowd in Pennsylvania on Monday that she opposed the company’s planned sale to Japan’s Nippon Steel. The Democratic presidential nominee’s comments, which echo President Joe Biden’s position, came after Nippon Steel Corp. said last week it would spend an additional $1.3 billion to upgrade facilities in Pennsylvania and Indiana, on top of a previous $1.4 billion commitment.
Nippon also reiterated that it expects the transaction to close in the second half of 2024, despite ongoing political and labor opposition.
Boeing shares slid 3.5% after its stock was downgraded by Wells Fargo ahead of a potential machinists strike. Boeing’s contract with the International Association of Machinists is set to expire just before midnight on Sept. 12.
It’s another busy week for earnings, with Dollar Tree, Dick’s Sporting Goods, Broadcom and Costco all reporting.
On Friday, closely watched U.S. jobs data is expected to influence the Federal Reserve’s read on the American economy and when it will start lowering interest rates. The move will have repercussions through global markets, including Asia.
“It is shaping up to be a significant litmus test. A stronger-than-expected payroll number, paired with a lower unemployment rate, could inject some much-needed confidence into the market, signaling that growth risks might be easing, at least for now,” said Stephen Innes, analyst at SPI Asset Management.
“If the report disappoints, especially if it pushes the unemployment rate higher, we could quickly see growth concerns flare up again.”
Elsewhere, in Europe at midday, France’s CAC 40 slipped nearly 0.3%, while Germany’s DAX gave up 0.3% and Britain’s FTSE 100 shed 0.5%.
Japan’s benchmark Nikkei 225 erased earlier gains to finish less than 0.1% lower at 38,686.31, while Australia’s S&P/ASX 200 fell less than 0.1% to 8,103.20.
South Korea’s Kospi initially rose after a report showed consumer inflation slowed in August to the weakest in more than three years, supporting expectations of an easing of monetary policy. The Kospi later declined 0.6% to 2,664.63.
South Korea’s consumer price index, or CPI, rose 0.4% from the previous month and 2.0% from a year earlier, after gaining 0.3 from a month earlier and 2.6% on-year in July.
Hong Kong’s Hang Seng dipped 0.2% to 17,651.49, while the Shanghai Composite edged down 0.3% to 2,802.98.
Worries were also growing about the resilience of China’s economy, as recently disclosed data showed a mixed picture. Weak earnings reports from Chinese companies, including property developer and investor New World Development Co., added to the pessimism.
In energy trading, benchmark U.S. crude fell 89 cents to $72.66 a barrel. Brent crude, the international standard, lost $1.51 to $76.01 a barrel.
In currency trading, the U.S. dollar slipped to 146.14 Japanese yen from 146.89 yen. The euro cost $1.1039, down from $1.1074.
On Friday, markets finished strong to close out their fourth straight winning month.
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