Dow Jones Today: Tech Lifts Nasdaq, S&P 500; Bond Yields Sink After Jobs Data - Investopedia

Nokia Falls, Ericsson Rises as AT&T Chooses Ericsson for $14B Deal

5 minutes ago

American depositary receipts (ADRs) of Nokia (NOK) fell over 4% to a three-year low while Ericsson (ERIC) rose 5% Tuesday morning after AT&T (T) tapped Ericsson for a $14 billion deal to modernize its wireless network. AT&T shares were up 3%.

Over the five-year deal, AT&T will work with Ericsson to deploy an open radio access network (Open RAN) in the U.S. that will handle 70% of the industry giant's wireless network traffic by late 2026.

The deal represents a major setback for Nokia; AT&T accounted for 5-8% of the company's mobile network net sales in 2023.

Nokia suggested cost-cutting initiatives could partially offset the impact of AT&T's decision but might delay the company's goal of achieving a double-digit operating margin in its mobile networks division by up to two years.

-Fatima Attarwala

Job Openings Fell in October to Their Lowest Since March 2021

1 hr 14 min ago

The number of job openings fell much more in October than economists expected as employers reined in hiring amid a slowing economy. 

Total job openings fell more than 6% to about 8.7 million on the last day of October, the lowest number since March 2021 when the Covid-19 vaccine was in the early stages of widespread distribution and the economy was still significantly constrained by restrictions. The number of hires and separations were little changed from September, as was the rate at which workers quit their jobs. 

It’s encouraging news for the Federal Reserve, which has raised interest rates to their highest level in decades in an attempt to slow economic growth without causing widespread layoffs.

Chinese Stocks Fall on Moody's Credit Outlook Warnings

1 hr 47 min ago

Hong Kong’s Hang Seng Index and the Shanghai Composite Index both fell nearly 2% Tuesday as credit rating agency Moody’s cut its outlook for the government’s financial health. 

Moody’s downgraded the outlook for the Chinese government’s credit rating to negative from stable, while maintaining its current A1 rating. The agency cited concerns about the costs the national government could incur to support local governments and state-owned enterprises (SOEs), as well as the challenges posed by slowing growth and a contracting property sector.

Moody’s sees the Chinese government becoming more selective about the support it offers to regional governments and SOEs as it attempts to prop up the economy “while preventing moral hazard and containing the impact on the sovereign’s balance sheet.” 

Still, there’s reason to believe the government can weather the storm. “Its economy’s vast size and robust, albeit slowing, potential growth rate, support its high shock-absorption capacity,” according to the agency. 

With Tuesday’s losses, the Hang Seng is down more than 17% year-to-date, while the Shanghai Composite is about 4% lower. American depositary receipts of Chinese companies trading on U.S. exchanges also fell Tuesday. E-commerce company JD.com (JD) fell 2% Tuesday morning, while peers Alibaba Group (BABA) and PDD Holdings (PDD) each slipped 1%.

Stocks Making the Biggest Moves Premarket

2 hr 45 min ago

Gains:

• GitLab Inc. (GTLB): Shares of the software development company jumped 13% after it reported its first-ever adjusted quarterly profit. The company earned 9 cents a share on nearly $150 million in revenue. Both exceeded analysts’ expectations. 
• Ericsson (ERIC): Shares of the Swedish telecommunications equipment provider rose more than 3% after AT&T (T) selected it to build its new open radio access network. The five-year contract could total as much as $14 billion. Shares of Nokia (NOK), AT&T’s former vendor, fell 6%. 
• CVS Health (CVS): Shares of the pharmacy chain and insurance provider gained about 2% after it raised its dividend and offered encouraging initial projections for 2024 sales and earnings.
  

Losses:

• Take-Two Interactive Software (TTWO): Shares of the video game maker fell nearly 3% after the trailer for Grand Theft Auto VI, the latest entry in its blockbuster franchise, was leaked. 
• UBS Group AG (UBS): Shares of the Swiss bank slipped more than 2% after Bank of America downgraded the stock to neutral, citing the cost of integrating Credit Suisse, the failed rival it acquired earlier this year.
• PDD Holdings Inc. (PDD): Shares of the Chinese e-commerce company fell more than 2% after Moody’s lowered its outlook for Chinese government debt to negative, a reflection of the country’s mounting economic woes. Peers Baidu (BIDU) and JD.com (JD) also fell about 2%. 

Futures Fall Ahead of Job Openings Data

3 hr 33 min ago

Futures contracts connected to the Dow Jones Industrial Average were about 0.3% lower in early trading Tuesday.

S&P 500 contracts also fell about 0.3%.

Nasdaq-100 futures dropped 0.4% before the bell.

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