- ADP YM=F ES=F NQ=F ^DJI
US stocks wobbled on Wednesday as doubts over AI demand put pressure on tech equities and investors digested a monthly ADP jobs update that showed a surprise decline in private-sector employment.
The Dow Jones Industrial Average (^DJI) and the S&P 500 (^GSPC) both fell below the flat line. The tech-heavy Nasdaq Composite (^IXIC) fell around 0.2%, after the major Wall Street gauges finished Tuesday with gains across the board.
Microsoft (MSFT) helped lead a tech decline, as shares fell over 2% after The Information reported that the company is lowering its AI software sales quotas. The report appeared to reignite investor skepticism that AI demand may not be as high as Big Tech has projected, with leading semiconductor stocks Nvidia (NVDA), Broadcom (AVGO) and TSMC (TSM) dropping nearly 1% in early trading.
Meanwhile, the ADP report on private-sector employment in November could add fuel to the fire around an expected rate cut from the Federal Reserve next week. The report showed that private employers shed 32,000 jobs last month, compared to expectations for a modest gain. ADP said the decline was driven by a sharp pullback from small businesses.
Eyes are also on privately sourced data on services activity in November for insight into inflation last month. The next official update on consumer prices — the PCE print due Friday — is playing catch-up on September.
Elsewhere, bitcoin extended its bid to bounce back from a deep, weeks-long slump that pulled the token below $83,000 in recent days. The leading cryptocurrency rose to touch a two-week high above $93,000 on Wednesday before retracing gains somewhat.
On the earnings front, Marvell Technology (MRVL) stock climbed over 10% in premarket after the US chipmaker's upbeat sales outlook and deal to buy Celestial AI. Shares of American Eagle Outfitters (AEO) also surged 10% after the retailer's strong start to the holiday shopping season. But Macy's (M) shares fell after the retailer posted a surprise profit but underwhelmed with its sales outlook amid an ongoing overhaul.
Salesforce (CRM) is also on Wednesday's earnings docket after the bell.
LIVE 11 updates
19 mins ago Myles Udland Microsoft stock sinks after company reportedly cuts some AI sales quotas
Microsoft (MSFT) stock fell nearly 2% in premarket trade on Wednesday after The Information reported the company had cut sales quotas for some AI products.
These full-year cuts come after some sales goals were also missed in the first half of the year.
This report sent the entire market lower, with Nasdaq futures falling as much as 0.5% before the open.
The market reaction on Wednesday shows this report being seen as another sign AI products might not yet be ready for the kind of mass customer adoption — whether that be consumers or enterprise customers — that hype around the AI trade depends on.
On the other hand, this softening of what were almost certainly aggressive targets also has a people management aspect, too, as a company doesn't want to punish a salesforce on the leading edge of an industrywide change if those same salespeople will be needed in the future to continue leading these efforts as AI products improve.
But given the state of this market, where investors have an increasing number of doubts about the stability of the AI trade against the backdrop of a slowing white collar labor market, this news does not appear to be getting the benefit of the doubt.
- 58 mins ago Grace O'Donnell
ADP report shows US private employers unexpectedly shed 32,000 jobs in November
US private employers shed 32,000 jobs in November, ADP reported Wednesday, marking an unexpected decline in the labor market after October's 42,000 jobs gained.
The manufacturing, professional services, information, and construction sectors led the job losses. Hiring also deteriorated in small businesses, which lost 120,000 jobs during the month.
“Hiring has been choppy of late as employers weather cautious consumers and an uncertain macroeconomic environment,” ADP chief economist Nela Richardson said. “And while November's slowdown was broad-based, it was led by a pullback among small businesses.”
ADP's labor market update was viewed as a crucial piece of labor market data, as the Bureau of Labor Statistics canceled its October jobs report due to the government shutdown.
Stocks were relatively unchanged following the report. Prospects of Fed interest rate cuts likely offset concerns about weakness in the labor market. On Wednesday morning, traders assigned an 88% chance that the Fed would cut rates at its December meeting, compared to 83% the previous week.
Today at 1:04 PM UTC Jenny McCall
Good morning. Here's what's happening today.
Economic data: MBA mortgage applications (week ended Nov. 28) ADP employment change (November); Import price index (September); Export price index (September) Industrial production (September); S&P Global US services PMI (November), final reading; S&P Global US composite PMI (November); ISM services index (November)
Earnings: Salesforce (CRM), Royal Bank of Canada (RY), Snowflake (SNOW), Dollar Tree (DLTR), Five Below (FIVE), Macy's (M), Uranium Energy Corp. (UEC), C3.ai (AI)
Here are some of the biggest stories you may have missed overnight and early this morning:
Macy's posts surprise Q3 profit as overhaul resonates
Bets jump on rate cuts from Trump-led Fed
Apple's leadership shift marks a 'major reset' in AI strategy
Anthropic plans an IPO as early as 2026, FT reports
Salesforce stock historically cheap as AI risk takes a toll
Bitcoin hits 2-week high in cautious crypto recovery
Women are just guessing how much they'll need to retire
Fed data suggests central bank has stopped losing money
Macy's falls as sales guidance trails last year's numbers
Macy's (M) stock fell over 7% before the bell on Wednesday as its elevated sales guidance fell below last year's annual sales numbers. But the retailer posted a surprise third quarter profit and its strongest comparable sales in three years. It also raised its financial guidance for the year.
The AP reports:
Read more here.
- Today at 12:48 PM UTC Grace O'Donnell
Apple's leadership shift marks a 'major reset' in AI strategy
Yahoo Finance's Hamza Shaban writes in today's Morning Brief newsletter:
Read more here.
- Today at 12:02 PM UTC Karen Friar
Marvell shares jump as chipmaker bolsters AI ambitions with Celestial deal
Marvell Technology (MRVL) shares climbed over 10% in premarket after its quarterly earnings beat and news the US chipmaker plans to buy Celestial AI.
Reuters reports:
Read more here.
Premarket trending tickers: GitLab, Okta, and Acadia Healthcare
GitLab (GTLB) stock fell 8% before the bell on Wednesday after reporting a loss in its latest quarter despite posting double-digit sales.
Okta (OKTA) stock dropped 4% during premarket trading on Wednesday. The cybersecurity company forecast fourth-quarter revenue above Wall Street estimates on Tuesday.
Acadia Healthcare (ACHC) fell 30% before the bell on Wednesday. The company lowered its full-year outlook, citing higher-than-expected costs from patient-related litigation.
- Today at 9:15 AM UTC Karen Friar
Bitcoin hits 2-week high but crypto sentiment remains fragile
Bitcoin (BTC-USD) continued its tentative recovery on Wednesday, tapping its highest level in two weeks as cryptocurrencies more broadly look to bounce back from a weeks-long slump.
The leading token rose to about $93,965, its highest intraday level since Nov. 17. It since has pared gains to trade below $93,000.
Bloomberg reports:
Read more here.
- Today at 8:50 AM UTC Grace O'Donnell
American Eagle Outfitters stock jumps after CEO calls out 'record-breaking Thanksgiving weekend'
American Eagle Outfitters (AEO) stock surged over 12% in premarket after the apparel retailer noted that its crucial holiday season was off to a strong start, boding well for the fourth quarter.
“Strong momentum has continued into the fourth quarter, including an excellent start to the holiday season," CEO Jay Schottenstein said in the release late Tuesday. "We delivered a record-breaking Thanksgiving weekend, led by an acceleration in demand across brands and channels and underscored by outstanding growth at Aerie and Offline."
For the third quarter, ended Nov. 1, American Eagle reported profit per share of $0.53, surpassing estimates of $0.43 per share. Revenue for the quarter was $1.36 billion, a 6% increase year over year and slightly better than estimates.
Overall, same-store sales increased 4%, led by an 11% increase in Aerie comparable sales, while American Eagle comparable sales grew 1%.
For the fourth quarter, American Eagle expects same-store sales to grow 8% to 9% year over year. Comparable sales are expected to increase by low single digits for the full year.
- Today at 4:14 AM UTC Rian Howlett
Silver notches new record as Fed rate, supply concerns pushes price higher
Bloomberg reports:
Read more here.
- Today at 3:18 AM UTC Rian Howlett
Anthropic opens up discussions for potential IPO in early 2026
Reuters reports:
Read more here.
