U.S. stocks were falling as investors look to Friday’s jobs report

U.S. stocks are falling as investors await the September jobs report on Friday.

At 09:44 ET (13:44 GMT), the Dow Jones Industrial Average was down 54 points or 0.2% while the S&P 500 was down 0.2%, and the NASDAQ Composite was down 0.2%.

The main indices on Wall Street posted hefty gains Wednesday, after disappointing private payrolls data resulted in a retreat in U.S. Treasury yields, with the benchmark 10-year yield falling back from the highs last seen in 2007.

The 30-stock Dow rose 0.4%, breaking a three-day losing streak, the broad-based S&P climbed 0.8%, while the tech-heavy Nasdaq rose 1.4%.

More employment data ahead of jobs report
Investors got another slice of jobs data in the form of unemployment claims for the previous week. The number came in at 207,000, lower than the expected 210,000 and up from the previous week’s 204,000.

This release can be seen as a precursor to Friday’s widely-watched monthly official jobs report, which is expected to show the economy added 163,000 positions last month, something that could factor into the Fed’s thinking heading into its next meeting in November.

The U.S. central bank signaled it could raise rates again this year and only saw two reductions next year, suggesting it won’t lower interest rates as quickly next year as investors had expected as of mid-summer.

Clorox to fall on weak guidance
In corporate news, earnings by Constellation Brands (NYSE:STZ) beat expectations and it offered 2024 EPS guidance above consensus. Packaged food giant ConAgra Foods (NYSE:CAG) beat EPS expectations and reaffirmed its 2024 EPS guidance. Denim retailer Levi Strauss (NYSE:LEVI) reports after the closing bell.

Clorox (NYSE:CLX) will also be in the spotlight after the cleaning products maker said it expects to post a first-quarter loss, much weaker guidance than had been previously provided. Shares fell 6%.

The auto sector will also be in focus after the United Auto Workers and Ford (NYSE:F) have reportedly narrowed their differences on pay increases after a new offer from the automaker, as the union’s strike against the ‘Detroit Three’ enters its 21st day. Ford shares fell 1%.

Crude continues Wednesday’s selloff
Oil prices retreated Thursday, continuing the previous session’s selloff as traders fretted about an uncertain demand outlook following a significant build in U.S. gasoline inventories.

Crude settled more than $5 a barrel lower on Wednesday, the sharpest one-day loss in more than a year, following the release of data showing the largest weekly build in almost two years for stockpiles of U.S. gasoline.

The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, had reaffirmed on Wednesday that Saudi Arabia and Russia would continue to cut output by at least 1.3 million barrels a day until the end of the year.