U.S. stocks experienced a downturn, wiping out earlier gains as investors grappled with a weaker-than-expected jobs report and a significant drop in oil prices. The ADP report, which often serves as a precursor to the official jobs report, revealed that private payrolls in November grew by only 103,000, missing the market's growth expectations.
Stock Market
-US stocks erased earlier gains as oil prices plunged below $70 amid oversupply concerns.
-The ADP report, which showed a miss on job growth expectations, further dampened the market's enthusiasm.
-Investors are now looking ahead to Friday's official jobs report for further clues about the state of the US economy.
Key Developments
-ADP reported that private payrolls increased by only 103,000 in November, falling short of expectations.
-The weaker-than-expected data raises concerns about the pace of economic growth and
could lead to a dovish shift in Fed policy expectations.
-Oil prices tumbled as OPEC+ signaled a possible increase in production and concerns about a global recession intensified.
Corporate Highlights
-Citigroup's (C) CFO warned of a slump in trading revenue for the fourth quarter.
-Exxon Mobil announced plans to accelerate share buybacks and boost production in the Permian Basin.
-Toll Brothers (TOL) executives expressed optimism about recent demand for new homes.
-Tesla (TSLA) lost an appeal in a labor dispute in Sweden.
-McDonald's (MCD) plans to open 50,000 new locations worldwide by 2027.
Looking Ahead
-Investors will be closely watching the US jobs report on Friday for further clues about the health of the labor market.
-Other key events this week include China trade data, the Eurozone GDP release, and the -Reserve Bank of Australia's head of financial stability speaking at a conference.
