Stock Market Today: Stocks Fluctuate on Robust Employment Data

Stocks fluctuated throughout Wednesday’s session after stronger-than-expected hiring numbers countered other jobs data that pointed to a slowdown in the labor market. Rising tensions in the Middle East and the looming non-farm payrolls report also weighed on equity gains.

The labor market – and its impact on the pace of rate cuts – was the key driver of the session after news that private payrolls rose sharply last month.

Accordingly, private employers created 143,000 jobs in September ADP National Employment Report. “Job creation showed an overall rebound after a five-month slowdown,” ADP said in a statement. The manufacturing sector added jobs for the first time since April, the company added, while only the information technology sector lost jobs last month.

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“So far this week, the labor market data has been more robust than many analysts expected,” wrote Chris Larkin, managing director of trade and investment E*Trade. “Like yesterday’s total job vacancies, today’s ADP employment number surprised on the upside, suggesting that the labor market is bending but not breaking. But the monthly report from Friday.” Job report will have the final say on the current labor market situation and most likely short-term market sentiment as well.”

This was triggered by a slowing labor market The US Federal Reserve wants to pass a gigantic interest rate cut last month, and market participants are trying to predict the pace of future cuts in borrowing costs. On October 2, futures traders estimated a 65 percent chance that the central bank would cut the key short-term interest rate by a quarter of a percentage point next Fed meetingaccording to CME Group FedWatch toolup from 43% a week ago. The chance of a second half-point cut was 35%, down from 57% last week.

“This morning’s ADP employment report adds credence to the argument that economic and labor conditions remain stable, especially after yesterday’s uptick in job openings,” wrote José Torres, senior economist Interactive brokers. “Of course, tomorrow’s reading on unemployment claims and ISM services will provide more detail, but the main event is on Payroll Jobs Friday.”

At the final bell the blue chip Dow Jones Industrial Average rose less than a tenth of a percent to 42,196, while the broader S&P 500 remained essentially unchanged at 5,709. The tech-heavy one Nasdaq Composite rose less than a tenth of a percent to 17,925.

Stocks on the move

Lamb Weston (LW) shares rose 2.6% afterward The potato producer exceeded sales and profit expectations for the first fiscal quarter, announced a restructuring plan and lowered its full-year profit forecast.

“Restaurant traffic and demand for frozen potatoes continue to be weak relative to supply, and we expect them to remain weak through the end of fiscal 2025,” Lamb Weston CEO Tom Werner said in a statement opinion.

As a result of the restructuring plan, Lamb Weston now expects earnings per share in the range of $4.15 to $4.35, down from its previous forecast of $4.35 to $4.85. However, it is still expected to generate revenue between $6.6 billion and $6.8 billion.

Humana (BUZZING) Shares fell 11.8% after the health insurance company announced preliminary Medicare Advantage Star Ratings data for its plans for 2025, which included a significant decline in members who had plans with a rating of four stars and higher.

Humana said in one regulatory filing Wednesday that about 1.6 million, or 25%, of its members are currently enrolled in MA plans rated four stars and above for 2025, down from 94% in 2024.

“The decline in Stars performance in 2025 will impact Humana’s quality bonus payments in 2026,” Humana said in the filing. “The 2025 Star Rating details are expected to be officially released by CMS on or about October 10.”

Nike calls a time out

Nike (NKE) performed worst of all 30 Dow Jones stocks today with a decline of 6.8% after the sportswear and footwear retailer reported mixed results for its fiscal first quarter.

To make matters worse, the blue chip withdrew its full-year forecast and postponed its investor day.

The company announced this last month Elliott Hill would become president and CEO of Nike effective October 14, replacing current CEO John Donahoe. Hill served in various roles at Nike for 32 years before retiring in 2020 as president of its consumer and marketplace division.

“In light of our CEO transition and with three-quarters of the fiscal year remaining, we are withdrawing our full-year guidance,” Chief Financial Officer Matthew Friend said in a statement opinion. “This gives Elliott the flexibility to re-engage with our employees and teams, assess current strategies and business trends, and develop our plans to optimally position the company for fiscal 2026 and beyond.”

Wednesday’s decline wiped about $9 billion off its market capitalization and left Nike shares down 23% year to date. This lags behind the overall market by more than 40 percentage points. As disappointing as 2024 was, Wall Street sees better days ahead. The company’s brand leadership and the stock’s low valuation are just two contributing factors Analysts are largely optimistic about Nike.

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