Dow, S&P 500 Beat Initial Blues To Rise After ADP Jobs Report Shows Weakness: MRVL, AEO, GTLB, SNOW Among Stocks To Watch

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The Dow Jones Industrial Average was up 0.42% at the time of writing, while the S&P 500 rose 0.19%.

  • According to ADP, small businesses registered a sharp pullback during the month, with a net decline of 120,000 employees, while mid-sized and large businesses added 90,000 employees on a net basis.
  • A Dow Jones estimate showed analysts expected an addition of 40,000 private payrolls in November.

U.S. stocks beat initial weakness to hover in the green on Wednesday after the November jobs report from ADP showed an unexpected decline in private payrolls during the month.

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The Dow Jones Industrial Average (DJIA) was up 0.42% at the time of writing, the S&P 500 rose 0.19%, while the Nasdaq Composite edged lower by 0.01%.

Meanwhile, the SPDR S&P 500 ETF (SPY) was up by 0.12%, Invesco QQQ Trust (QQQ) declined 0.10% on Wednesday morning, and SPDR Dow Jones Industrial Average ETF Trust (DIA) fell 0.34%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bullish’ territory.

ADP Report Points To Weakness

According to data released by payroll processing firm ADP, small businesses registered a sharp pullback during the month, with a net decline of 120,000 employees, while mid-sized and large businesses added 90,000 employees on a net basis.

A Dow Jones estimate cited by MarketWatch showed analysts expected an addition of 40,000 private payrolls in November.

Stocks To Watch

  • Marvell Technologies Inc. (MRVL): Marvell shares were up more than 6% in Wednesday’s opening trade. The company’s stock received multiple price target hikes, according to TheFly, after its third-quarter (Q3) earnings beat Wall Street expectations.
  • American Eagle Outfitters Inc. (AEO): American Eagle Outfitters shares were up nearly 14% in the opening trade on Wednesday following the company’s Q3 earnings beat. American Eagle Outfitters reported earnings per share (EPS) of $0.53 on revenue of $1.36 billion, compared to analyst estimates of an EPS of $0.44 on revenue of $1.32 billion, according to Stocktwits data.
  • GitLab Inc. (GTLB): GitLab shares were down nearly 16% in Wednesday’s opening trade after the company posted a loss of $0.05 per share in Q3, compared to Wall Street expectations of an EPS of $0.2, according to Stocktwits data.
  • Salesforce Inc. (CRM), Snowflake Inc. (SNOW), and UiPath Inc. (PATH) are among the companies scheduled to report their latest quarterly earnings on Wednesday.

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