This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribeindex dropped 3%. Market sentiment headed south after a Labor Department report showed initial jobless claims at its highest since August last year, while theas investors digested weak job numbers and braced for a September rate cut by the U.S. Federal Reserve.
With most of Big Tech's earnings out of the way, investors are likely to turn their attention to Friday's job report for clues on how quickly the employment market is weakening and whether the U.S. might slip into a recession.185,000 jobs were created in July, down from 206,000 in June. Job gains have averaged 203,000 a month so far this year as the unemployment rate edges higher.
Most analysts predict the fall in job creation to be modest and in line with the gentle downshift the Fed is looking to engineer. "If the Fed was going to manufacture the soft landing, this is probably what it was going to look like," said Mike Reynolds, vice president of investment strategy at Glenmede.as part of a $10 billion cost-cutting plan. The company also said that it will not pay its dividend in the fiscal fourth quarter of 2024 and that it will lower full-year capital expenditures by over 20%.
"Our credit card data suggests that the category correction now mirrors the magnitude of the peak to trough decline the home furnishing space experienced during the great financial crisis," Wayfair CEO Niraj Shah said in a news release.