NEW YORK (AP) —
U.S. stocks are slipping ahead of a report that may show whether the job market is cooling as much as Wall Street hopes it is. The S&P 500 fell 0.3% at the start of trading on Tuesday. The Dow Jones Industrial Average dipped 67 points, and the Nasdaq composite dropped 0.4%. Treasury yields also fell in the bond market ahead of a report that will show how many job openings U.S. employers are advertising. Oil prices are climbing and near their highest levels since April on expectations for strong demand during the summer and the possibility of damage to oil production because of hurricanes.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
(AP) — Wall Street veered toward losses before the open Tuesday, while oil prices rose to their highest level since mid-April, pushing shares of energy energy companies higher.
Futures for the Dow Jones Industrial Average slid 0.3% before the bell and futures for the S&P 500 w fell 0.4%.
Benchmark U.S. crude rose 73 cents to $84.11 a barrel in electronic trading on the New York Mercantile Exchange. The cost for a barrel of U.S. crude had risen almost 18% this year, though gas prices have remained relatively low compared with 2023.
Exxon Mobil, ConocoPhillips, BP and Chevron all made modest gains in contrast to declines in the broader market.
Brent crude, the international standard, added 70 cents to $87.30 per barrel. A barrel is up 13% in 2024.
Paramount Global, which has been a takeover target for months, rose 3.1% on reports that there were multiple offers for its controlling shareholder, Shari Redstone’s National Amusements.
There is new data arriving Tuesday from the government on job openings for May. More labor market data is coming later in the week, with jobless claims Wednesday and the government's comprehensive June jobs report coming Friday.
The labor market has held up better than most experts expected after the Federal Reserve began raising interest rates in March of 2022, however some softness is beginning to show. Applications for jobless benefits are trending higher in June after remaining mostly below 220,000 this year. The unemployment rate ticked up to 4% in May, despite the fact that U.S. employers added a strong 272,000 jobs last month. Job postings for April hit their lowest level since 2021.
European stocks fell significantly after the 20-nation bloc reported that inflation crept lower — to 2.5% in June — but remained stuck above the level favored by the European Central Bank.
Germany’s DAX lost 1.1% and Britain’s FTSE 100 declined 0.4%.
France’s CAC 40 dropped 1% in early trading. The benchmark jumped as much as 2.8% before settling to a gain of 1.1% on Monday as results from France suggested a far-right political party may not win a decisive majority in the country’s legislative elections.
That raised the possibility of gridlock in the French government, which would prevent a worst-case scenario where a far-right with a clear majority could push policies that would greatly increase the French government’s debt.
This is a big year for elections worldwide, with voters heading to the polls in the United Kingdom later this week and soon elsewhere. In the United States, pollsters are measuring the fallout from last week’s debate between President Joe Biden and former President Donald Trump.
In Asia, Tokyo's benchmark Nikkei 225 added 1.1% to 40,074.69 as the weaker yen spurred buying of export-oriented shares.
Australia’s S&P/ASX 200 shed 0.4% to 7,718.20 and South Korea’s Kospi dropped 0.8% to 2,780.86 despite data from Statistics Korea showing the country’s consumer inflation slowed to an 11-month low in June.
Hong Kong's Hang Seng climbed 0.3% to 17,769.14 and the Shanghai Composite index edged up 0.1% to 2,997.01.
Taiwan’s Taiex gained 0.6%, while the SET in Bangkok slipped 0.5%.
The Japanese yen fell to near a fresh 38-year low, reaching 161.67 yen to the dollar early Tuesday. It later gained to 161.62.
The euro cost $1.0723, down from $1.0738.
On Monday, the S&P 500 rose 0.3% and the Dow Jones Industrial Average edged up 0.1%. The Nasdaq composite gained 0.8%.
