Dow Jones futures fell slightly early Wednesday, along with S&P 500 futures and Nasdaq futures. Dow component Johnson & Johnson (JNJ) rose late as it proposed paying $8.9 billion to settle claims that talc products caused cancer.
The stock market rally lost ground Tuesday as recession fears mounted. Job openings fell to a 21-month low, much lower than expected. While the data further lower Fed rate hike odds, they raise concerns that the U.S. economy is heading for a recession.
The major indexes had modest losses, not showing much damage. A lot of that reflects megacaps. Apple (AAPL), Microsoft (MSFT) barely budged while Meta Platforms (META) edged higher. So did Google parent Alphabet (GOOGL), working toward a buy point. Tesla (TSLA) fell slightly, extending Monday’s tumble after first-quarter deliveries. But TSLA held key support, though.
Growth overall held up reasonably well, with some software makers such as ServiceNow (NOW) making strong moves. On the downside, AI stock plummeted on a short-seller’s latest move vs. C3.ai (AI). C3 fell modestly early Wednesday.
Overall market breadth was weak. Many groups, including steelmakers, base metal miners, building materials firms and heavy construction makers, suffered sharp losses. on economic fears.
Banks fell as well, especially regional names but also giants such as JPMorgan Chase (JPM). If nothing else, the recent bank woes will likely mean less lending, notably for commercial real estate, weighing on the economy.
JPMorgan CEO Jamie Dimon warned in his annual shareholder letter Tuesday that the bank crisis is “not yet over” with “repercussions” for years to come.
Gold and gold stocks had a strong day, as recession fears and weaker dollar sent investors scurrying into safe havens.
ServiceNow and META stock are on SwingTrader. Microsoft and Google stock are on IBD Long-Term Leaders.
The video embedded in this article discussed Tuesday’s market action and analyzed NOW stock, Atkore and C3.ai.
J&J Talc Settlement
After the close, Johnson & Johnson offered to pay $8.9 billion to settle long-standing…