US Stock Market Live: Stocks Edge Lower as Investors Eye Key Jobs and Manufacturing Data

Barclays analyst Tim Long has taken a critical stance on Apple (AAPL), highlighting a concerning decline in demand for the iPhone 16.

Long noted, “Despite earlier reports in July about increased iPhone production following the launch of Apple Intelligence, our recent supply chain checks indicate that Apple may have reduced its order by approximately 3 million units of a crucial semiconductor component for the upcoming December quarter. If confirmed, this would mark the earliest production cut in Apple's recent history.

“Our sell-through checks reveal a staggering 15% decline year-over-year in global iPhone 16 sales during the first week of availability. Furthermore, our analysis of iPhone stock levels across various regions suggests a weaker demand for the iPhone 16 compared to last year. We observed significantly shorter wait times for the device in major markets, in contrast to last year's supply chain challenges that extended lead times for iPhone 15 Pro models.

“Collectively, these insights indicate that demand for the iPhone 16 may fall short of previous expectations, particularly in key markets like the U.S. and China.”

Stellantis the company behind the popular Jeep brand, experienced a 1% dip in its stock during pre-market trading on Tuesday after announcing a recall of over 150,000 hybrid Jeep SUVs due to concerns over a potential fire risk.

This downturn comes just a day after the automaker's shares plunged by 12.5% following a bleak forecast for its North American operations. Stellantis, which also produces Dodge and Ram vehicles, has revised its profit margin expectations for the year down to between 5.5% and 7%, significantly lower than the double-digit growth it had previously projected. In light of the challenging conditions facing the global auto market, the company is implementing cost-cutting strategies and rolling out discounts to help maintain its competitive edge.

The recall specifically targets the 2020-2024 Jeep Wrangler 4xe and the 2022-2024 Jeep Cherokee 4xe models. Stellantis conducted an internal investigation that linked the fire risk to 13 incidents; however, the company estimates that only about 5% of the recalled SUVs may actually experience this issue. As Stellantis navigates these challenges, both safety concerns and economic pressures are weighing heavily on its performance in the market.

U.S. stocks kicked off October and the fourth quarter with a subdued performance on Tuesday. The Dow Jones Industrial Average (^DJI) dipped around 0.4%, while the S&P 500 (^GSPC) fell by about 0.3%. Both major indexes had reached record highs just a day prior, showcasing the contrasting sentiment as the new month begins.

The tech-heavy Nasdaq Composite (^IXIC) also moved downward, experiencing a decline of approximately 0.3%. Investors are now closely monitoring market trends and economic indicators to navigate the uncertainties that lie ahead. As traders reassess their positions, cautious sentiment is evident across the board, reflecting a careful approach in response to ongoing economic developments.

Job openings in the U.S. saw an increase in August, suggesting that the labor market, while cooling, is not experiencing a rapid slowdown. According to the latest data from the Bureau of Labor Statistics, there were approximately 8.04 million job vacancies at the end of August, up from 7.71 million in July. This figure surpassed economists’ expectations, who had predicted a slight rise to about 7.67 million.

The previous month's job openings were also revised upward from the initially reported 7.67 million, indicating a more robust job market than previously thought.

Additionally, the Job Openings and Labor Turnover Survey (JOLTS) reported that there were 5.31 million hires made in August, a slight decrease from the 5.41 million recorded in July. The hiring rate for August stood at 3.3%, down from 3.4% the previous month.

Another notable point from Wednesday's report was the decline in the quits rate, which fell to 1.9%. This figure marks the lowest level since June 2020 and is often seen as a sign of workers' confidence in the job market. A declining quits rate can indicate that employees are less willing to leave their jobs, which might suggest caution amid economic uncertainties.

As the labor market continues to evolve, these indicators offer a glimpse into the complexities of employment trends and economic conditions.

Oil prices rose sharply on Tuesday after reports emerged that Iran may be preparing to launch a missile strike against Israel. West Texas Intermediate (WTI) crude jumped about 3%, pushing it above $70 per barrel. Meanwhile, the international benchmark, Brent crude, also increased around 2%, hovering just under $74 per barrel.

A senior U.S. official indicated that “we have indications that Iran is on the verge of launching a ballistic missile attack against Israel.” In response, the United States is stepping up its support for Israel’s defense preparations, emphasizing that any direct military action from Iran would have serious repercussions.

The situation in the Middle East has become increasingly tense following Israel's recent ground operations in southern Lebanon, aimed at the Iran-backed militant group Hezbollah. These developments have created a climate of uncertainty that is weighing heavily on investor sentiment.

The backdrop of these geopolitical concerns, combined with mixed economic and job data released earlier in the day, contributed to a downturn in the stock market, with the tech-heavy Nasdaq composite leading the decline. Investors are now closely monitoring the situation, as further escalation could significantly impact oil prices and broader market trends.

A strike by dockworkers that started on the East and Gulf coasts early Tuesday is causing significant concern, as it could disrupt nearly half of the United States' ocean shipping. This strike has the potential to cost the economy billions of dollars each day.

Ryan Petersen, the founder and CEO of Flexport, shared his thoughts before the strike commenced, stating, “If this strike continues for more than a few days or a week, we could see serious consequences.” He explained that up to 15% of the world’s container ships might be taken out of service, leading to a sharp decline in shipping capacity. Petersen warned that the disruption could be even more severe than what the U.S. experienced during the pandemic.

Despite the potential for significant disruption, Raymond James Chief Economist Eugenio Aleman believes the strike is unlikely to cause inflation to rise, which is a primary concern as the strike progresses. Aleman noted that while the strike impacts about 40% of U.S. container volumes and occurs at a critical time before the holiday shopping season and upcoming elections, it’s not expected to drive inflation like previous port shutdowns did in 2021 and 2022.

His reasoning revolves around “softening consumer demand.” Aleman pointed out that factors like slower job growth, a more selective consumer market, and expected decreases in housing costs should help keep inflation in check despite the strike.

As the situation evolves, economists and analysts will be keeping a close eye on the strike's duration and its broader economic implications, especially with the busy holiday shopping season approaching.