The main indexes were choppy in Wednesday's abbreviated session. Although volume was thin ahead of tomorrow's stock market holiday, there were plenty of headlines to sift through for those who stuck around.
Jobs data dominated the economic headlines. For one, the Labor Department said initial jobless claims rose by a more-than-expected 4,000 last week to 234,000.
Separate data from ADP showed private payrolls added 150,000 new jobs in June. That was below what economists were expecting and represented the smallest gain in five months. The report also showed that wages for job stayers increased 4.9% year-over-year, the smallest annual increase since August 2021.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
However, the most-anticipated event on this week's economic calendar is the monthly jobs report, due out Friday morning.
Outside of the labor market, data from the Institute for Supply Management (ISM) showed its Services Purchasing Managers Index (PMI) unexpectedly slipped into contraction territory in June, falling to 48.8% from May's 53.8%. This is the second time in three months the index has come in below the 50 level, indicating decelerating activity.
Today's busy batch of data helped boost expectations that rate cuts could start sooner rather than later. According to CME Group's FedWatch Tool, futures traders are now pricing in a 67% chance the first quarter-point rate cut will come in September, up from 63% one day ago.
Southwest adopts a poison pill
In single-stock news, Southwest Airlines (LUV, +1.6%) said its board of directors approved a shareholder rights plan after activist investor Elliott Management disclosed an 11% stake in the discount air carrier last month.
The rights plan, also known as a poison pill, will go into effect once a shareholder accumulates a 12.5% stake in Southwest and is meant to protect LUV investors.
Paramount jumps nearly 7% on latest M&A update
Elsewhere, Paramount Global (PARA) jumped 6.9% today on news Skydance Media has reportedly reached a preliminary agreement to buy National Amusements, which owns roughly 77% of PARA's voting stock. The various parties have been embroiled in complicated buyout talks for some time now and this latest move paves the way for a potential Paramount-Skydance merger, according to The Wall Street Journal.
Paramount stock is a former member of the Berkshire Hathaway equity portfolio, with Warren Buffett & Co. initiating a stake in the media company in Q1 2022. However, at Berkshire's annual meeting in May, Buffett said the holding company exited its stake, adding "we lost quite a bit of money" on the position.
As for the main indexes, the Nasdaq Composite rose 0.9% to 18,188 and the S&P 500 gained 0.5% to 5,537, both new record closes. The Dow Jones Industrial Average slipped 0.06% to 39,308.
Editor's note: This article initially stated that Paramount is still a member of the Berkshire Hathaway portfolio. It has been updated to reflect that the holding company sold out of its PARA stake in Q2 2024.
Related content
- 30 Early Walmart Deals Ahead of the Big Sales Event
- How to Find the Best Industrial Stocks
- When Is Amazon Prime Day?
-
Boost Your HSA Savings with These Smart and Savvy MovesWednesday is National HSA Awareness Day. Health Savings Accounts (HSAs) provide savers with a triple tax benefit and even more if you adopt these strategies.
-
Banks Are Sounding the Alarm About StablecoinsThe Kiplinger Letter The banking industry says stablecoins could have a negative impact on lending.
-
Medicare Open Enrollment: Why You Need to Pay Extra Attention to Part D, From a Financial AdviserThe lowest premium for prescription drug coverage might not actually save you the most money. Make sure you take copays into consideration and do the math.
-
How the One Big Beautiful Bill Will Change Charitable GivingTaxpayers who don't itemize will be able to take a bigger deduction for donations, which could boost giving. However, high-income donors could see their tax benefits reduced.
-
Stocks Swing in Volatile Session: Stock Market TodayThe main indexes fell sharply in early trading on rising China tensions, but rebounded thanks to encouraging bank earnings.
-
A 'Fast, Fair and Friendly' Fail: Farmers Irks Customers With Its Handling of a Data BreachFarmers Insurance is facing negative attention and lawsuits because of a three-month delay in notifying 1.1 million policyholders about a data breach. Here's what you can do if you're affected.
-
Serving the HNW Market: How Financial Advisers Can Break Through and Deliver Lasting ValueFinancial advisers have a significant opportunity to serve high-net-worth clients by elevating their capabilities, delivering comprehensive planning, building diverse teams and prioritizing family wealth education.
-
Don't Just Sell, Connect: How Financial Advisers Can Ignite Their Sales GrowthAvoid complacency and embrace small, consistent improvements to optimize your sales process and results.
-
Dow Adds 587 Points as Stocks Bounce: Stock Market TodayThe main indexes rebounded sharply Monday after President Trump took a calmer stance toward China.
-
Are You a Small Business Owner Buckling Under Economic Pressure? Here's How You Can CopeSignificant emotional and financial challenges, including tariff worries, are piling up on small business leaders. Here's how leaders can develop more healthy coping strategies and systems of support.
