Day Traders Diary

12/1/22

The major averages closed mixed, relinquishing some of the big gains seen in the prior session as investors awaited jobs data coming Friday that could determine the pace of the Federal Reserve's future rate tightening. The Dow Jones Industrial Averages fell 194 points or 0.56%. The S&P 500 fell 3 points while the Nasdaq rose 14 points.

Shares of Salesforce tumbled about 8.3% – helping to drag down the Dow – after the software company said its co-CEO would be stepping down soon. The index dropped as much as 460 points earlier in the session, a turn from the gain of more than 700 points seen Wednesday after Fed Chair Jerome Powell appeared to confirm the central bank will slow down its tightening.

Costco dropped more than 6.6% after November sales slowed to 5.7% from an increase of 7.7% in October, an ominous sign during the peak holiday selling season. The wholesale retailer also reported a 10.1% decline in e-commerce sales during the period.

Despite a bullish open on the back of a slightly better than expected inflation measure watched by the Federal Reserve, traders showed caution before the important Friday jobs report.

Investors are looking to data on non-farm payrolls, the unemployment rate and hourly wages Friday for insight into the labor market, which has been relatively strong despite hopes of contraction as the Fed looks to cool inflation. Economists polled by Dow Jones expect the U.S. added 200,000 jobs in November, which would be a decrease from the 261,000 gained in the prior month.