The S&P 500 index declines for the third straight session
US indices closed with collective losses in yesterday's session, Wednesday, under pressure from the shares of major companies in the technology and energy sectors and amid anticipation of the non-farm payrolls report for November, which is scheduled to be released next Friday to give a more comprehensive overview of the labor market.
The national employment report issued today by ADP showed that private sector jobs increased by 103,000 jobs in November, which was less than economists’ expectations of 130,000 jobs, reinforcing expectations that the Fed’s campaign to raise interest rates contributed to calming the economy.
Performance of major US indices:
The Dow Jones Index fell by about 0.2%, equivalent to 70 points, in Wednesday’s session, recording the third daily loss in a row. The Nasdaq Composite Index fell by about 0.6%.
The S&P 500 index also fell by about 0.4%, recording the third daily loss in a row, with the energy and technology sectors topping the list of losers.
Exxon Mobil shares closed below $100 levels for the first time in 9 months, with oil prices falling by 4%, as a larger-than-expected rise in US gasoline inventories exacerbated concerns about fuel demand.
Amazon shares
Amazon's stock fell by 1.6% in Wednesday's session, with the company losing $26 billion in market value in one day.
The company announced a sharp reduction in fees on merchants who sell clothing at prices below $20 from its level of 17%, in a rare move by the e-commerce company.
This indicates that Amazon is looking to attract merchants who sell clothing at a low cost, an area in which Chinese startup SHEIN excels.
Tobacco company stocks:
Shares of major tobacco companies declined, led by Altria Group, which fell by about 3%, and Philip Morris by 1.6%, recording its largest daily loss in more than a month.
These losses came after its UK counterpart British American Tobacco, which makes Lucky Strike and Dunhill, said it would suffer a loss of $31.5 billion from writing off the value of some American cigarette brands.
These declines underscore how dire the outlook is for tobacco companies, even as they try to move from smoking to e-cigarettes or other products.
As some countries look to phase out smoking altogether, New Zealand recently considered a law that would have eventually banned the sale of cigarettes in the country.