04:56 PM EDT, 11/01/2024 — US equity indexes fell this week after mixed results from Big Tech firms and amid soaring government bond yields as investors weighed the inflation and nonfarm payrolls data ahead of presidential elections.
* The Dow Jones Industrial Average ended at 42,052.19 on Friday, compared with 42,114.40 a week ago. The S&P 500 stood at 5,728.80 end-of-play, compared with 5,808.12 a week earlier. The Nasdaq Composite closed at 18,239.92 versus 18,518.61 a week prior.
* Among the Big Tech firms reporting this week, Meta Platforms (META), Apple (AAPL), and Microsoft (MSFT) closed lower on Friday versus a week ago. In contrast, Amazon.com (AMZN) and Alphabet (GOOG), the duo that also reported, saw share-price gains.
* On Thursday, September’s 0.2% sequential increase in the personal consumption expenditures price index was as expected, but it still trimmed the year-over-year rate to 2.1% from 2.3% in August. The price index rose by 0.1% month over month in August. The core PCE price index increased as expected by 0.3% versus a 0.2% gain in August. The year-over-year rate remained at 2.7%.
* On Friday, data showed nonfarm payrolls climbed by 12,000 in October. The consensus was for a 100,000 increase in a survey compiled by Bloomberg. October’s gain was the weakest since December 2020, Stifel said. Gains were revised downwards by 31,000 for September and 81,000 for August.
* The jobs report leaves the Federal Reserve on track to lower its target rate by 25 basis points to 4.5% to 4.75% at its meeting on Nov. 7, Oxford Economics said Friday. According to the FedWatch Tool late Friday, the highest likelihood, 33%, is that interest rates will be 3.75% to 4% in July, implying a measured pace of reduction in the months ahead.
* Two-year Treasury yield rose to 4.21% late Friday, up from 4.11% a week ago. The 10-year yield jumped to 4.38% from 4.24% as bond vigilantes weighed the uncertainty arising from presidential elections and the economic data.
US benchmark equity indexes closed higher Friday, aided in part by a post-earnings rally in Amazon.com (AMZN) shares.
The Nasdaq Composite rose 0.8% to 18,239.9, while the Dow Jones Industrial Average advanced 0.7% to 42,052.2. The S&P 500 added 0.4% to 5,728.8. Consumer discretionary led the gainers among sectors, up 2.4%, while utilities saw the biggest drop at 2.3%.
For the week, the Nasdaq decreased 1.5%, while the S&P 500 lost 1.4%. The Dow dropped 0.2%.
In company news, Amazon shares jumped 6.2%, among the top gainers on all three indexes. The e-commerce giant late Thursday logged Q3 results that surpassed Wall Street’s estimates amid double-digit revenue gains in its cloud-computing platform and advertising business.
Charter Communications (CHTR) delivered a Q3 beat Friday, buoyed by double-digit revenue gains in residential mobile services and advertising. The broadband connectivity company and cable operator’s shares surged nearly 12%, the second-best performer on the S&P 500 and the Nasdaq.
Apple (AAPL) shares fell 1.3%, the second-steepest decline on the Dow. Late Thursday, the tech giant posted better-than-expected fiscal Q4 results amid higher iPhone and Mac sales, while it incurred a one-time tax charge of $10.2 billion related to a European court order in September.
Super Micro Computer (SMCI) was the worst performer on the S&P 500 and the Nasdaq, down 11%.
The US 10-year yield increased 9.6 basis points to 4.38%, while the two-year rate added 4.6 basis points to 4.21%.
In economic news, the US economy added 12,000 jobs in October, the Bureau of Labor Statistics reported. The consensus was for a 100,000 increase, according to a survey compiled by Bloomberg. Jobs growth fell short of the Street’s estimates amid an ongoing strike at Boeing (BA) and potential hurricane-related disruptions, according to government data.
The jobs report “is more relief than alarm” for the Federal Reserve, Jefferies said, adding that the central bank is seen delivering a 25-basis-point interest rate cut next week and in December.
The US manufacturing sector remained in contraction territory in October amid output weakness ahead of the presidential election, two separate surveys from the Institute for Supply Management and S&P Global (SPGI) showed.
“Demand remains subdued, as companies continue to show an unwillingness to invest in capital and inventory due to concerns about federal monetary policy direction in light of the fiscal policies proposed by both major (political) parties,” Timothy Fiore, chair of the ISM’s manufacturing business survey committee, said.
West Texas Intermediate crude oil rose 0.3% to $69.45 a barrel Friday. “Oil prices extended gains after reports that Iran was preparing for a retaliatory strike on Israel from Iraq in the coming days,” D.A. Davidson said in a note.
Gold fell 0.2% to $2,743.10 per troy ounce, while silver lost 0.8% to $32.54 per ounce.
Pre Market Overview 11/1/2024 — US stocks look set to open higher in Friday’s trading session as investors analyze key inflation and manufacturing data released earlier in the morning.
The Dow Jones Industrial Average futures were up 0.54%, S&P 500 futures gained 0.53%, and Nasdaq futures were rising 0.54%.
Oil prices were higher, with front-month global benchmarks Brent crude and West Texas Intermediate crude up 1.80% and 1.95% respectively.
The unemployment rate for October remained unchanged at 4.1%, meeting analyst forecasts, while non-farm payrolls added only 12,000 in October, far below the Bloomberg estimate of 106,000.
The US Bureau of Labor Statistics said Friday it is likely that in some industries payroll employment estimates were affected by Hurricanes Helene and Milton. However, it also said it is “not possible to quantify the net effect on the over-the-month change in national employment.”
The BLS also said manufacturing employment decreased by 46,000 in October, which includes a decline of 44,000 in transportation equipment manufacturing “that was largely due to strike activity.”
In other world markets, Japan’s Nikkei tumbled 2.63%, Hong Kong’s Hang Seng was up 0.93%, and China’s Shanghai Composite was down 0.24%. Meanwhile in Europe’s early afternoon session, the UK’s FTSE 100 was moving nearly 1% higher, while Germany’s DAX and France’s CAC were up 0.61% and 0.78% respectively.
In equities, shares of Globalstar (GSAT) jumped 43% after it said in a regulatory filing Friday it has updated its service agreements with Apple (AAPL) to expand its mobile satellite services network. Theriva Biologics (TOVX) shares surged 40% after it said late Thursday that it has been named as one of five finalists for Merck’s (MRK) Advance Biotech Grant. Shares of Athira Pharma (ATHA) climbed 34% after losing about 5% on Thursday. Pro-Dex (PDEX) shares climbed 27% after it reported late Thursday that it swung to a profit in fiscal Q1. And shares of Atlassian (TEAM) rose 24% after it reported fiscal Q1 earnings and revenue that topped analyst forecasts.
On the losing side, shares of ESSA Pharma (EPIX) plummeted 69% after it said it is terminating a phase 2 trial evaluating the combination of masofaniten and enzalutamide in patients with metastatic castration-resistant prostate cancer compared with enzalutamide alone. Lexicon Pharmaceuticals (LXRX) shares plunged 40% after it said late Thursday that the US Food and Drug Administration denied a new drug application for Zynquista to treat glycemic control in adults with type 1 diabetes and chronic kidney disease. The FDA said that the benefits of Zynquista do not outweigh the risks in adults. Shares of Advent Technologies (ADN) fell 20% after a 34% gain on Thursday. CIMG’s (IMG) stock dropped 17%, eating into its 32% gain on Thursday. And shares of Visionary Holdings (GV) were down 13%, adding to a 5% loss the previous session.
The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.5%, and the actively traded Invesco QQQ Trust (QQQ) was 0.6% higher in Friday’s premarket activity, ahead of the closely-watched monthly US jobs report.
US stock futures were also higher, with S&P 500 Index futures up 0.4%, Dow Jones Industrial Average futures advancing 0.4%, and Nasdaq futures gaining 0.5% before the start of regular trading.
October’s employment situation bulletin is slated to post at 8:30 am ET followed by the S&P Global US PMI manufacturing final report for October at 9:45 am ET.
Dallas Federal Reserve President Lorie Logan speaks at 9:45 am ET.
The ISM manufacturing index final report for October and the construction spending for September bulletin are slated to be released at 10 am ET.
The weekly Baker Hughes oil-and-gas domestic rig count will be released at 1 pm ET.
In premarket action, Bitcoin was up by 0.2% and the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was marginally up by 0.02%.
Power Play:
Health Care
The Health Care Select Sector SPDR Fund (XLV) advanced 0.5%. The Vanguard Health Care Index Fund (VHT) was up 0.1% while the iShares US Healthcare ETF (IYH) was inactive. The iShares Biotechnology ETF (IBB) was flat.
Pediatrix Medical (MD) stock was up 8.2% premarket after the company reported higher Q3 adjusted earnings and net revenue.
Winners and Losers:
Consumer
The Consumer Staples Select Sector SPDR Fund (XLP) was up 0.2%, while the Vanguard Consumer Staples Fund (VDC) was inactive. The iShares US Consumer Staples ETF (IYK) was inactive, and the Consumer Discretionary Select Sector SPDR Fund (XLY) gained 1.5%. The VanEck Retail ETF (RTH) rose by 1.3%, while the SPDR S&P Retail ETF (XRT) was inactive.
Magna International (MGA) shares were up nearly 4% pre-bell even after the company reported lower Q3 adjusted earnings and sales.
Financial
Financial Select Sector SPDR Fund (XLF) advanced 0.3%. Direxion Daily Financial Bull 3X Shares (FAS) was up 0.3%, while its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was 0.3% lower.
Nomura (NMR) shares were up 2.5% pre-bell Friday after the company reported higher fiscal Q2 net income and revenue.
Industrial
Industrial Select Sector SPDR Fund (XLI) advanced 0.1% while the Vanguard Industrials Index Fund (VIS) and the iShares US Industrials ETF (IYJ) were inactive.
Boeing Company (BA) stock was up 2.3% before the opening bell after the International Association of Machinists and Aerospace Workers said late Thursday that the airplane maker reached a tentative agreement with union leaders representing 33,000 workers on strike for almost two months over wage disputes.
Energy
The iShares US Energy ETF (IYE) was inactive, while the Energy Select Sector SPDR Fund (XLE) was up by 1%.
Chevron (CVX) stock was up 2.1% before Friday’s opening bell after the company reported forecast-beating Q3 adjusted earnings and revenue.
Technology
Technology Select Sector SPDR Fund (XLK) advanced 0.3%, and the iShares US Technology ETF (IYW) was 0.6% higher, while the iShares Expanded Tech Sector ETF (IGM) was inactive. Among semiconductor ETFs, SPDR S&P Semiconductor ETF (XSD) was inactive, while the iShares Semiconductor ETF (SOXX) rose by 0.9%.
Apple (AAPL) shares were down 1.8% in recent Friday premarket activity after the company posted a tepid fiscal Q1 guidance late Thursday and said its fiscal Q4 net income was dragged down by an income tax charge of $10.2 billion related to a European court order in September.
Commodities
Front-month US West Texas Intermediate crude oil rose 1.9% to $70.56 per barrel on the New York Mercantile Exchange. Natural gas gained 0.1% to $2.71 per 1 million British Thermal Units. United States Oil Fund (USO) was up 0.1%, while the United States Natural Gas Fund (UNG) lost 0.8%.
Gold futures for December advanced 0.5% to $2,762.60 an ounce on the Comex, while silver futures gained 0.5% to $32.95 an ounce. SPDR Gold Shares (GLD) increased by 0.3%, and iShares Silver Trust (SLV) was 0.4% higher.
Wall Street futures pointed moderately higher pre-bell Friday, as traders assessed values after Thursday’s steep reverses.
Blue chip and index heavyweight Amazon (AMZN) traded up 6.6% pre-bell after the e-commerce colossus reported earnings and revenue above outlooks late Thursday.
Investors also await the October employment situation bulletin from Washington, slated for an 8:30 am ET release. Pundits project a net new 125,000 jobs in the month and hourly earnings up 4% on year.
In the futures, the S&P 500 rose 0.4%, the Nasdaq inclined 0.4% and the Dow Jones was up 0.3%.
Asian exchanges traded mostly lower overnight on Wall Street cues, while European bourses tracked moderately higher midday on the continent.
In earnings, Chevron (CVX) traded up 2.2% pre-bell after the oil giant reported Q3 adjusted earnings and revenue down on year, but topped expectations of analysts polled by Capital IQ.
Exxon Mobil (XOM) traded up 1.3% pre-bell after the integrated oil titan reported Q3 earnings down on year but in line with the Street expectations. Revenue slipped, but topped outlooks.
LyondellBasell Industries (LYB) traded down 2.7% pre-bell after the chemical company reported Q3 earnings and revenue down on year and below outlooks.
On the economic calendar, in addition to the employment report, is the S&P Global US PMI manufacturing final report for October at 9:45 am ET.
The ISM manufacturing index final report for October, and the construction spending for September bulletin, post at 10 am.
The weekly Baker Hughes oil-and-gas domestic rig count posts at 1 pm.
Dallas Federal Reserve President Lorie Logan speaks at 9:45 am.
In premarket action, Bitcoin traded at $69,868, West Texas Intermediate crude oil traded higher at $70.67, and 10-year US Treasuries offered 4.30%. Spot gold traded for $2,747 an ounce.
Closing Summary 10/31/2024 — US benchmark equity indexes fell Thursday, driven in part by a post-earnings decline in Microsoft (MSFT) shares, and logged drops for the month of October.
The Nasdaq Composite decreased 2.8% to 18,095.2, while the S&P 500 retreated 1.9% to 5,705.5. The Dow Jones Industrial Average lost 0.9% to 41,763.5. Technology saw the steepest decline among sectors, down 3.6%. Only utilities and energy closed higher.
For October, the Dow dropped 1.3%, while the S&P 500 lost 1%. The Nasdaq shed 0.6%.
In company news, Microsoft shares decreased 6% Thursday, the steepest decline on the Dow and among the worst on the Nasdaq. Late Wednesday, the company said it expects fiscal second-quarter revenue growth for its Azure cloud-computing business between 31% and 32% in constant currency. For its just-ended quarter, Microsoft reported a 34% annual gain for Azure and other cloud services at constant currencies.
Estee Lauder (EL) on Thursday withdrew its fiscal 2025 guidance and slashed its dividend as its first-quarter sales fell more than expected amid headwinds in China and Asia travel retail. The cosmetics company’s shares plunged nearly 21%, the second-worst performer on the S&P 500.
Paycom Software (PAYC) was the top gainer on the S&P 500, up 21%, after the company delivered a third-quarter beat late Wednesday.
Comcast (CMCSA) said Thursday it is considering a potential spin off of its cable brands to better navigate cord-cutting trends. The company reported higher-than-expected results for the third quarter. Its shares rose 3.4%, among the best performers on the Nasdaq.
The US 10-year yield rose 1.2 basis points to 4.28%, while the two-year rate was little changed at 4.16%.
In economic news, US consumer spending accelerated more than expected in September, while the Federal Reserve’s preferred inflation metric held steady at the annual level, government data showed.
“The ongoing strength in consumer spending suggests upside risk to (fourth-quarter) growth estimates, ruling out another (50-basis-point) rate chop from the Fed next week,” BMO Capital Markets said. “However, with headline inflation nearly back to the target and employment costs moderating, a (25-basis-point) move remains firmly on the table.”
Weekly applications for unemployment insurance in the US unexpectedly declined, according to government data.
US-based employers cut 55,597 jobs this month, down roughly 24% from September but up 51% annually, Challenger Gray & Christmas said.
On Friday, data from the Bureau of Labor Statistics are expected to show the US economy added 101,000 jobs in October, which would mark a decrease from a 254,000 gain posted for the previous month, according to a Bloomberg poll.
West Texas Intermediate crude oil rose 2.8% to $70.52 a barrel Thursday, following a gain in the previous session.
Prices are driven higher by optimism over US fuel demand following a surprise fall in crude and gasoline inventories, D.A. Davidson said in a note to clients. Recent reports about the Organization of the Petroleum Exporting Countries and its allies potentially delaying a planned production hike “offered support” to prices, according to the note.
Gold fell 1.6% to $2,757 per troy ounce, while silver slumped 3.6% to $32.84 per ounce.
Pre Market Summary 10/31/2024 — US stocks look set to open lower in Thursday’s trading session as investors parse key inflation and employment data that were released earlier in morning.
The Dow Jones Industrial Average futures were down 0.46%, S&P 500 futures were off 0.6%, and Nasdaq futures were moving 0.69% lower.
Oil prices were moving higher with front-month global benchmarks Brent crude and West Texas Intermediate crude rising 0.94% and 0.98% respectively.
Personal income rose by 0.3% in September following August’s 0.2% gain, as expected in a survey conducted by Bloomberg as of 7:40 am ET. Personal consumption expenditures rose 0.5%, compared with forecasts of a 0.4% increase. After adjusting for inflation, real PCE rose by 0.4% after a 0.2% increase in August, compared with expectations of a 0.3% increase.
Initial jobless claims came in much lower than expected, falling to 216,000 from 228,000 the previous week. Forecasters had been expecting claims to 229,000, according to Bloomberg.
In other world markets, Japan’s Nikkei fell 0.50%, Hong Kong’s Hang Seng was off 0.31%, and China’s Shanghai Composite was up 0.42%. Meanwhile in Europe’s early afternoon session, the UK’s FTSE 100 dropped 0.67%, while Germany’s DAX and France’s CAC were down 0.56% and 0.87% respectively.
In equities, shares of Root (ROOT) soared 92% in Thursday’s premarket after it reported Wednesday that it swung to a Q3 profit and posted higher total revenue compared with a year earlier. Shares of Avadel Pharmaceuticals (AVDL) advanced more than 27% after it said a court ruled in favor of the Food and Drug Administration against a lawsuit brought by Jazz Pharmaceuticals (JAZZ) regarding the FDA’s approval of Lumryz oxybate treatment. Alphatec (ATEC) shares surged 26% after reporting higher Q3 earnings and revenue, and raised its full-year guidance. Tenon Medical’s (TNON) advanced 23% after it reported Thursday positive results from initial clinical cases using its new Catamaran SE SI Joint Fixation Device. And shares of Remitly Global (RELY) climbed 23% after Wells Fargo upgraded its rating on the stock.
On the losing side, shares of Matinas BioPharma (MTNB) plunged 54%, piling on to a 31% loss Wednesday, after it said Thursday that it will slash its workforce by 80% and has halted all product development activities to conserve cash. Equillium (EQ) shares tumbled 44% after the company said Thursday that Ono Pharmaceutical decided to let expire an option to acquire Equillium’s rights to itolizumab. Shares of MDJM (MDJH) fell 47% following a slight gain the previous session. COMPASS Pathways’ (CMPS) stock shed 35% after a slight loss on Wednesday. And shares of Estee Lauder (EL) lost more than 23% after it reported lower net sales from a year earlier, reduced its quarterly dividend, and withdrew its fiscal 2025 guidance.
Closing Summary, 10/30/2024 — US benchmark equity indexes closed lower Wednesday as traders parsed the latest corporate earnings and economic data, including a report showing slower-than-projected economic growth in Q3.
The Nasdaq Composite fell 0.6% to 18,607.9, retreating from Tuesday’s record close. The S&P 500 dropped 0.3% to 5,813.7, while the Dow Jones Industrial Average lost 0.2% to 42,141.5. Technology saw the steepest decline among sectors, while communication services led the gainers.
In company news, Super Micro Computer (SMCI) shares plunged nearly 33%, the steepest decline on the S&P 500 and the Nasdaq. The artificial intelligence server maker said Ernst & Young resigned as its auditor, months after the accounting firm highlighted concerns regarding internal controls over financial reporting.
Qorvo (QRVO) shares tanked 27%, the second-worst performer on the S&P 500. Late Tuesday, the company reported that its fiscal Q2 results fell year over year, while it issued a downbeat Q3 outlook.
Garmin (GRMN) was the top gainer on the S&P 500, up 23%, after the company delivered a Q3 beat and raised its full-year outlook Wednesday.
Alphabet’s (GOOG) class A and C shares rose more than 2.8% each, among the best performers on the Nasdaq. Late Tuesday, the Google parent logged stronger-than-expected Q3 results, driven by strength in its advertising and cloud operations.
The US two-year yield increased 5.1 basis points to 4.17% Wednesday, while the 10-year rate gained one basis point to 4.28%.
In economic news, US real gross domestic product grew at an annual rate of 2.8% in the September quarter, according to an advance estimate by the Bureau of Economic Analysis. The consensus was for a 2.9% gain in a survey compiled by Bloomberg.
“Real GDP growth remains strong, and this summer’s fears of an imminent recession now seem grossly exaggerated,” Desjardins said in a report, adding that economic growth is likely to slow, especially in Q4.
Employment growth in the US private sector rose more than expected in October, while wage growth cooled, Automatic Data Processing (ADP) reported.
Pending home sales in the US climbed more than projected last month amid gains across all regions, the National Association of Realtors said.
West Texas Intermediate crude oil rose 2.5% to $68.89 a barrel Wednesday.
The Organization of the Petroleum Exporting Countries and its allies may delay a planned oil output hike in December by at least one month amid soft demand and increasing supply, Reuters reported.
Commercial crude stockpiles in the US dropped by 500,000 barrels to 425.5 million barrels through the week ended Friday, the Energy Information Administration said. The consensus was for a gain of 1.8 million barrels, according to a Bloomberg-compiled poll.
Gold increased 0.7% to $2,799.30 per troy ounce, while silver fell 1.5% to $33.93 per ounce.
Pre-market Overview, 10/30/2024 — – US equity futures were flat before Wednesday’s opening bell as traders digested strong results from Alphabet (GOOG, GOOGL).
Dow Jones Industrial Average futures slipped 0.2%, S&P 500 futures flatlined, and Nasdaq futures were up 0.1%.
Oil prices were higher, with front-month global benchmark North Sea Brent crude up 2.1% at $72.22 per barrel and US West Texas Intermediate crude 2.2% higher at $68.65 per barrel.
Private payrolls based on ADP Institute’s Employment Report, released at 8:15 am ET, rose by 233,000 in October following a 159,000 revised increase in September, which compares with estimates compiled by Bloomberg for a 111,000 gain.
Q3 gross domestic product growth, released 8:30 am ET, came in at a 2.8% annual rate versus Q2’s 3% growth and estimates for 2.9% increase.
The Pending Home Sales Index, due at 10 am ET, is seen rising by 1.9% in September following a 0.6% gain in August.
In other world markets, Japan’s Nikkei closed 1% higher, Hong Kong’s Hang Seng ended 1.6% lower, and China’s Shanghai Composite finished 0.6% lower. Meanwhile, the UK’s FTSE 100 was down 0.6%, and Germany’s DAX index fell 1.2% in Europe’s early afternoon session.
In equities, shares of Alphabet were up more than 6% pre-bell after the company reported late Tuesday higher Q3 earnings and revenue that also topped estimates from analysts polled by Capital IQ. Reddit (RDDT) stock was 22% higher after the company overnight swung to Q3 net income on higher revenue.
On the losing side, HomeStreet (HMST) shares were down 30% after the company failed to secure regulatory approvals for its pending merger with FirstSun Capital (FSUN).
Closing Summary, 10/29/2024 — The Nasdaq Composite closed at an all-time high Tuesday as investors parsed the latest batch of corporate earnings and economic data.
The technology-heavy Nasdaq rose 0.8% to 18,712.8, while the S&P 500 advanced 0.2% to 5,832.9. The Dow Jones Industrial Average fell 0.4% to 42,233.1. Among sectors, only communication services and tech saw gains, while utilities posted the steepest decline.
In company news, Cadence Design Systems (CDNS) shares jumped nearly 13%, the best performer on the S&P 500 and the Nasdaq. Late Monday, the company tightened its full-year outlook, raising the lower end of the range on earnings and revenue after a better-than-expected Q3.
Incyte (INCY) saw the second-biggest gain on the S&P 500, up 12%, after delivering a Q3 revenue beat Tuesday.
Ford Motor (F) shares dropped 8.4%, the second-worst performer on the S&P 500, after British union Unite said the automaker’s UK workers will go on strike starting Wednesday after labor negotiations broke down.
Late Monday, Ford said it expected consolidated adjusted earnings before interest and tax of $10 billion for 2024, at the lower end of its prior $10 billion to $12 billion guidance range.
PayPal (PYPL) was the worst performer on the Nasdaq Tuesday, down 4%, after the digital payments company’s Q3 revenue grew less than expected, while earnings growth outpaced analysts’ views.
The US two-year yield fell 3.1 basis points to 4.11%, while the 10-year rate decreased 1.4 basis points to 4.26%.
In economic news, US consumer confidence outpaced expectations this month, while the annual inflation outlook edged higher, the Conference Board said.
“Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years,” Conference Board Chief Economist Dana Peterson said.
US job openings declined last month, while separations rose amid an increase in layoffs, government data showed.
On Friday, the Bureau of Labor Statistics is expected to report that the US economy added 111,000 jobs in October, which would imply a deceleration from last month’s 254,000 rise.
US home prices increased to a new record high in August, though the pace of annual growth decelerated to the slowest level since mortgage rates peaked last year, S&P Global (SPGI) division S&P Dow Jones Indices said.
Separately, the Federal Housing Finance Agency said home prices grew 0.3% on a seasonally adjusted basis in August, compared with the prior month’s upwardly revised 0.2% gain. The consensus was for a 0.1% rise in a survey compiled by Bloomberg.
West Texas Intermediate crude oil fell 0.3% to $67.21 a barrel Tuesday.
Gold increased 1.1% to $2,784.80 per troy ounce, while silver gained 1.8% to $34.63 per ounce.
08:59 AM EDT, 10/29/2024 — US equity futures incurred narrow losses before Tuesday’s opening bell as traders awaited the release of quarterly earnings from technology giant Alphabet (GOOG, GOOGL).
The Dow Jones Industrial Average futures slipped 0.4%, S&P 500 futures declined 0.2%, and Nasdaq futures were little changed.
The Google parent is scheduled to report earnings after the closing bell, alongside payment technology company Visa (V), and chipmaker Advanced Micro Devices (AMD). Meanwhile, fast-food giant McDonald’s (MCD) reported pre-bell Q3 adjusted earnings and revenue that topped analysts’ estimates.
Oil prices were higher, with front-month global benchmark North Sea Brent crude up 1.2% at $71.88 per barrel and US West Texas Intermediate crude up 1.5% at $68.37 per barrel.
US trade in goods deficit, released at 8:30 am ET, widened to $108.23 billion in September from $94.22 billion previously, compared with estimates compiled by Bloomberg for $96 billion.
The Federal Housing Finance Agency House Price index, slated for 9 am ET, is seen edging 0.1% higher in August to match the prior month’s increase.
The Consumer Confidence index, due at 10 am ET, is seen rising to 99.5 in October from 98.7 previously. Forecasters see job openings based on the Labor Department’s Job Openings and Labor Turnover Survey coming in at 7.9 million for September following an 8 million rate in August.
In other world markets, Japan’s Nikkei closed 0.8% higher, Hong Kong’s Hang Seng ended 0.5% higher, and China’s Shanghai Composite finished 1.1% lower. Meanwhile, UK’s FTSE 100 slipped 0.1%, and Germany’s DAX index gained 0.2% in Europe’s early afternoon session.
In equities, McDonald’s shares were down 1.2% pre-bell. Profire Energy (PFIE) shares were up 47% on a pending $125 million takeover by CECO Environmental (CECO).
On the losing side, CVR Energy (CVI) shares were down nearly 23% after the company overnight reported it swung to a fiscal Q3 adjusted loss and posted lower net sales in addition to suspending its quarterly dividend. TransMedics Group (TMDX) stock was 25% lower after the company overnight reported Q3 earnings and revenue that trailed Capital IQ analysts’ estimates.
The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was down 0.1% and the actively traded Invesco QQQ Trust (QQQ) was marginally lower by 0.02% in Tuesday’s premarket activity as earnings continue to pour in this week.
US stock futures were also lower, with S&P 500 Index futures down 0.1%, Dow Jones Industrial Average futures slipping 0.3%, and Nasdaq futures retreating 0.02% before the start of regular trading.
The September international trade in goods bulletin and the September retail and wholesale inventories reports will be released at 8:30 am ET.
The national Job Openings and Labor Turnover Survey for September is due at 10 am ET.
The Case-Shiller Home Price Index and the FHFA House Price Index, both for August, are scheduled for 9 am ET, and the Conference Board’s consumer confidence report for October posts at 10 am ET.
In premarket activity, bitcoin was up by 2.5% and the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 2.7% higher.
Power Play:
Health Care
The Health Care Select Sector SPDR Fund (XLV) was flat. The Vanguard Health Care Index Fund (VHT) was inactive while the iShares US Healthcare ETF (IYH) advanced 0.6%. The iShares Biotechnology ETF (IBB) was inactive.
Tenet Healthcare (THC) stock was up 6% premarket after the company reported higher Q3 results and lifted its guidance for 2024 adjusted earnings.
Winners and Losers:
Consumer
The Consumer Staples Select Sector SPDR Fund (XLP) was up 0.1%, while the Vanguard Consumer Staples Fund (VDC) was inactive. The iShares US Consumer Staples ETF (IYK) retreated 1.6%, and the Consumer Discretionary Select Sector SPDR Fund (XLY) lost 0.6%. The VanEck Retail ETF (RTH) and the SPDR S&P Retail ETF (XRT) were inactive.
Keurig Dr Pepper (KDP) shares were down 4% pre-bell after the company said that a subsidiary of JAB Holding is selling 60 million shares of the beverage company’s stock at $32.85 apiece in a registered public offering.
Technology
Technology Select Sector SPDR Fund (XLK) increased by 0.1%, and the iShares US Technology ETF (IYW) was 0.2% higher, while the iShares Expanded Tech Sector ETF (IGM) was inactive. Among semiconductor ETFs, SPDR S&P Semiconductor ETF (XSD) fell 0.3%, while the iShares Semiconductor ETF (SOXX) rose by 0.2%.
Leidos Holdings (LDOS) shares were up 3.1% in recent Tuesday premarket activity after the company reported higher Q3 non-GAAP earnings and revenue, and lifted its 2024 outlook.
Financial
Financial Select Sector SPDR Fund (XLF) retreated 0.2%. Direxion Daily Financial Bull 3X Shares (FAS) was down 0.3%, while its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was 0.6% higher.
Banco Santander (SAN) shares were down 2.6% pre-bell Tuesday after the company reported lower-than-expected Q3 earnings and revenue.
Energy
The iShares US Energy ETF (IYE) was inactive, while the Energy Select Sector SPDR Fund (XLE) was marginally up by 0.02%.
BP (BP) stock was down 2.5% before Tuesday’s opening bell after the company posted lower Q3 underlying earnings and revenue.
Industrial
Industrial Select Sector SPDR Fund (XLI) retreated 0.2% while the Vanguard Industrials Index Fund (VIS) and the iShares US Industrials ETF (IYJ) were inactive.
Boeing (BA) stock was down 1.8% before the opening bell after the company said it priced its public offerings of 112.5 million common shares at $143 each and $5 billion of depositary shares at $50 per share.
Commodities
Front-month US West Texas Intermediate crude oil rose 1.2% to $68.18 per barrel on the New York Mercantile Exchange. Natural gas fell 3.7% to $2.22 per 1 million British Thermal Units. United States Oil Fund (USO) was up 0.2%, while the United States Natural Gas Fund (UNG) lost 1.1%.
Gold futures for December advanced 0.2% to $2,761.70 an ounce on the Comex, while silver futures rose by 0.8% to $34.28 an ounce. SPDR Gold Shares (GLD) gained 0.3%, and iShares Silver Trust (SLV) was 1.3% higher.
Wall Street futures were lower pre-bell Tuesday as traders weighed earnings reports and noted rising interest rates.
In the futures, the S&P 500 was 0.1% down, the Nasdaq was fractionally lower, and the Dow Jones was off 0.3%.
The national Job Openings and Labor Turnover Survey for September will post in Washington at 10 am ET, providing clues into labor-market tightness and possible Federal Reserve outlooks.
Yields on benchmark 10-year US Treasuries touched above 4.30% in morning hours. Bitcoin topped $71,000 in early action.
Asian exchanges traded choppily overnight, while European bourses edged north midday on the continent.
In earnings news, Pfizer (PFE) traded up 1.6% pre-bell after the drugmaker reported Q3 adjusted earnings and revenue up year on year and above expectations of analysts surveyed by Capital IQ. Pfizer also issued upbeat guidance.
ITT (ITT) traded sideways pre-bell after the diversified tech manufacturer reported Q3 adjusted earnings and revenue up year on year and modestly above expectations of analysts. ITT’s guidance was in line with Street views.
Alphabet (GOOG, GOOGL) and McDonald’s (MCD) are also slated to report earnings pre-bell, among many others.
On the economic calendar, in addition to the JOLTS release, is the September international trade in goods bulletin at 8:30 am ET, along with the September retail and wholesale inventories reports.
The Case-Shiller Home Price Index and the FHFA House Price Index, both for August, post at 9 am, and the Conference Board consumer confidence report for October posts at 10 am.
In premarket action, Bitcoin traded at $71,168, West Texas Intermediate crude oil traded higher at $68.44, and 10-year US Treasuries offered 4.30%. Spot gold traded for $2,749 an ounce.
Closing Summary — October 28, 2024 04:26pm
US benchmark equity indexes closed higher Monday as traders awaited mega-cap technology earnings due later in the week, while oil prices slumped.
The Dow Jones Industrial Average rose 0.7% to 42,387.6, while the S&P 500 and the Nasdaq Composite advanced 0.3% each to 5,823.5 and 18,567.2, respectively. Among sectors, financials led the gainers. Only energy and technology closer lower.
Tech giants Apple (AAPL), Microsoft (MSFT), Google parent Alphabet (GOOG, GOOGL), Amazon.com (AMZN), and Facebook parent Meta Platforms (META) are scheduled to report their latest quarterly financial results later this week.
Roughly 37% of S&P 500 companies have logged results so far, with quarterly profits up 3.6% from a year earlier on 3.9% revenue growth, Oppenheimer Asset Management said in a Monday note to clients.
In company news, 3M (MMM) shares rose 4.4%, the top gainer on the Dow and among the best on the S&P 500, as JPMorgan adjusted its price target on the stock to $165 from $160 and maintained its overweight rating.
McDonald’s (MCD) was one of the best performers on the Dow, up 1.4%. On Sunday, the fast-food giant announced the planned return of its Quarter Pounder hamburgers in all restaurants this week after ruling out beef patties as the potential source of a recent E. coli outbreak.
Boeing (BA) announced an offering of 90 million common shares as the plane maker seeks to raise capital amid an ongoing labor strike that has adversely impacted its financial position. The company’s shares fell 2.8%, the steepest decline on the Dow.
Centene (CNC) was the second-worst performer on the S&P 500, down 4%, as Jefferies adjusted its price target on the stock to $68 from $72 and maintained its hold rating.
West Texas Intermediate crude oil sank 5.4% to $67.93 a barrel. “Oil prices tumbled after Israel’s retaliatory strike against Iran over the weekend bypassed oil and nuclear facilities and did not disrupt energy supplies,” D.A. Davidson said in a Monday note to clients.
The US 10-year yield increased 4.6 basis points to 4.28%, while the two-year rate gained 3.5 basis points to 4.13%.
In economic news, Texas manufacturing activity unexpectedly improved into shallower contraction territory in October as production swung positive, according to the Federal Reserve Bank of Dallas.
Florida’s housing affordability crisis has been exacerbated by rising property taxes fueled largely by pandemic-era migration and partly by intensifying climate disasters, Redfin (RDFN) said.
Gold was little changed at $2,755.20 per troy ounce, while silver increased 0.3% to $33.87 per ounce.
Pre-market — October 28, 2024 08:56am
US equity futures were higher pre-bell Monday as traders looked ahead to this week’s slate of earnings from major technology companies.
The Dow Jones Industrial Average futures rose 0.4%, S&P 500 futures increased 0.5%, and Nasdaq futures were up 0.7%.
Alphabet (GOOG, GOOGL), Microsoft (MSFT), Meta Platforms (META), Apple (AAPL), and Amazon (AMZN) are all due to report later in the week.
Oil prices were lower, with front-month global benchmark North Sea Brent crude down 5.9% at $71.14 per barrel and US West Texas Intermediate crude 6% lower at $67.26 per barrel.
The Dallas Fed’s General Activity index is due for release at 10:30 am ET.
In other world markets, Japan’s Nikkei closed 1.8% higher, Hong Kong’s Hang Seng ended 0.04% higher, and China’s Shanghai Composite finished 0.7% higher. Meanwhile, UK’s FTSE 100 fell 0.3%, and Germany’s DAX index slipped 0.2% in Europe’s early afternoon session.
In equities, shares of Corning (GLW) were 2.4% higher pre-bell on a multi-year purchase agreement with AT&T (T) for fiber, cable and connectivity products. Monte Rosa Therapeutics (GLUE) shares advanced over 29% after the company said it secured a global license deal with Novartis (NVS) to advance therapies for multiple immune-mediated conditions.
On the losing side, Royal Philips (PHG) shares slumped 16% after the company reported lower Q3 sales that trailed analysts’ estimates and cut its 2024 comparable sales growth guidance.
The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.5% and the actively traded Invesco QQQ Trust (QQQ) was 0.7% higher in Monday’s premarket activity, ahead of earnings from big technology companies like Alphabet (GOOG, GOOGL) and Apple (AAPL).
US stock futures were also higher, with S&P 500 Index futures up 0.4%, Dow Jones Industrial Average futures advancing 0.4%, and Nasdaq futures gaining 0.6% before the start of regular trading.
The Dallas Fed Manufacturing survey for October will be released at 10:30 am ET.
In premarket activity, bitcoin was up by 1.3% and the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 2.8% higher.
Power Play:
Health Care
The Health Care Select Sector SPDR Fund (XLV) advanced 0.2%. The Vanguard Health Care Index Fund (VHT) was up 0.9% while the iShares US Healthcare ETF (IYH) was flat. The iShares Biotechnology ETF (IBB) was 0.03% higher.
Royal Philips (PHG) shares were down more than 16% premarket after the company reported lower Q3 sales and cut its 2024 comparable sales growth outlook.
Winners and Losers:
Industrial
Industrial Select Sector SPDR Fund (XLI) advanced 0.6% while the Vanguard Industrials Index Fund (VIS) and the iShares US Industrials ETF (IYJ) were inactive.
Elbit Systems (ESLT) stock was up 7% after the company said it won a contract worth $200 million from the Israeli Ministry of Defense to supply high-power laser systems.
Consumer
The Consumer Staples Select Sector SPDR Fund (XLP) was up 0.6%, while the Vanguard Consumer Staples Fund (VDC) was inactive. The iShares US Consumer Staples ETF (IYK) was down 0.1%, and the Consumer Discretionary Select Sector SPDR Fund (XLY) gained 0.6%. The VanEck Retail ETF (RTH) and the SPDR S&P Retail ETF (XRT) were inactive.
WeRide’s (WRD) shares were up 4% pre-bell after the company said it expects the total proceeds of its initial public offering to amount to $458.5 million.
Energy
The iShares US Energy ETF (IYE) fell 1.6%, while the Energy Select Sector SPDR Fund (XLE) was down by 1.9%.
Alliance Resource Partners (ARLP) stock was down 2.5% before Monday’s opening bell after the company reported lower Q3 earnings and revenue that also trailed Capital IQ analysts’ estimates.
Technology
Technology Select Sector SPDR Fund (XLK) advanced 0.6%, and the iShares US Technology ETF (IYW) was 0.6% higher, while the iShares Expanded Tech Sector ETF (IGM) was up 1.3%. Among semiconductor ETFs, SPDR S&P Semiconductor ETF (XSD) was inactive, while the iShares Semiconductor ETF (SOXX) rose by 0.8%.
Advanced Micro Devices (AMD) shares were up 1.5% in recent premarket activity after the company and ECARX Holdings (ECX) officially launched the smart #5, the first mid-size sport-utility-vehicle which is powered by AMD Ryzen Embedded V2000 Series processors.
Financial
Financial Select Sector SPDR Fund (XLF) gained 0.6%. Direxion Daily Financial Bull 3X Shares (FAS) was up 1.4%, while its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was 1.6% lower.
Willis Towers Watson (WTW) shares were up 1.2% pre-bell Monday after the company said it had secured a license to act as an insurance broker in the Kingdom of Saudi Arabia.
Commodities
Front-month US West Texas Intermediate crude oil fell 6% to $67.46 per barrel on the New York Mercantile Exchange. Natural gas declined 5.8% to $2.41 per 1 million British Thermal Units. United States Oil Fund (USO) was down 5.8%, while the United States Natural Gas Fund (UNG) lost 4.4%.
Gold futures for December retreated 0.4% to $2,742.70 an ounce on the Comex, while silver futures declined by 0.8% to $33.51 an ounce. SPDR Gold Shares (GLD) slipped 0.4%, and iShares Silver Trust (SLV) was 0.6% low
US equity investors will focus on Big-Tech earnings this week while watching out for the jobs and inflation data amid concern the fiscally expansionary policies of presidential election candidates would likely force the Federal Reserve to keep interest rates higher for longer.
* The Nasdaq Composite closed at a new record last week following Tesla’s (TSLA) quarterly results and ahead of earnings from five of the so-called seven Magnificent Seven companies — Apple (AAPL), Microsoft (MSFT), Alphabet (GOOG, GOOGL), Amazon.com (AMZN), and Meta Platforms (META) next week.
* The Fed’s preferred inflation reading — personal consumption expenditures, or PCE — will be refreshed on Thursday. It is “unlikely to shift the bias away” from a 25 basis-point cut on Nov. 7, with a “mild risk of a hold,” a note from Scotiabank said late Friday.
* October’s nonfarm payrolls, wage growth, and hours worked are due Friday. The JOLTS job openings data is due Tuesday.
* “My guesstimate is for payrolls to grow by only 95k with an uptick in the unemployment rate to 4.2%,” the Scotiabank note said. “Hurricanes are likely to dominate favourable seasonal adjustment factors in temporarily depressing payroll growth before the rebound into year-end.”
* Last week, the two-year US Treasury yield closed at 4.1%, up from 3.6% when the Fed cut rates in September as it outlined increased focus on the labor market rather than inflation. Over the comparable period, the 10-year yield jumped to 4.23% from 3.69% as bond vigilantes weighed the policy proposals from Democrats and Republicans. Early Monday, all Treasury yields traded higher ahead of the Nov. 5 presidential elections.
* “Ongoing labor market softening suggests monetary policy is restrictive at current levels and a Republican clean sweep — resulting in greater inflationary pressures — would simply push rate cuts further into the future rather than halting them altogether,” Oxford Economics said on Friday.
Wall Street futures pointed solidly higher pre-bell Monday ahead of a heavy week of earnings, pending key economic reports, and as oil prices sagged.
In the futures, the S&P 500 rose 0.5%, the Nasdaq inclined 0.7% and the Dow Jones was up 0.4%.
The Federal Reserve’s preferred inflation gauge, for September, and the national employment report, for October, are slated for release in Washington on Thursday and Friday, respectively.
Key global crude oil prices declined about 6% in pre-market hours after recent Israeli military strikes on Iran excluded oil facilities.
Corporate behemoths reporting earnings this week include Microsoft (MSFT), Alphabet (GOOGL), Berkshire Hathaway (BRK.A, BRK.B) Meta Platforms (META), Amazon (AMZN), Apple (AAPL), Visa (V), AMD (AMD), McDonald’s (MCD), Pfizer (PFE), Ford (F), Eli Lilly (LLY), Caterpillar (CAT), Starbucks (SBUX), Mastercard (MA), Intel (INTC), Merck (MRK), Altria (MO), Exxon Mobil (XOM), and Chevron (CVX).
Asian exchanges traded choppily overnight, although Tokyo gained following weekend elections. European bourses tracked sideways midday on the continent.
On the economic calendar is the Dallas Fed Manufacturing survey for October, at 10:30 am ET.
In pre-market action, Bitcoin traded at $68,611, West Texas Intermediate crude oil traded lower at 67.55, and 10-year US Treasuries offered 4.26%. Spot gold traded for $2,743 an ounce.
Closing Summary
October 25, 2024 05:02pm
US equity indexes were mixed this week amid concern that the fiscally expansionary policies of presidential election candidates would likely force the Federal Reserve to keep interest rates higher for longer, outweighing the impact of quarterly earnings.
* The Dow Jones Industrial Average ended at 42,114.40 on Friday, compared with 43,275.91 a week ago. The S&P 500 read was 5,808.12 end-of-play, compared with 5,864.67 a week earlier.
* The Nasdaq Composite closed at 18,518.61 versus 18,489.55 a week prior. Nasdaq closed at a new record following Tesla’s (TSLA) quarterly results and ahead of earnings from Apple (AAPL), Microsoft (MSFT), Alphabet (GOOG, GOOGL), Amazon.com (AMZN), and Meta Platforms (META) next week.
* The two-year Treasury yield rose to 4.11% late Friday from 3.6% when the Fed cut rates in September saying it is focused more on the labor market than inflation. The 10-year yield jumped to 4.24% from 3.69% as bond vigilantes weighed the policy proposals from Democrats and Republicans.
* “Ongoing labor market softening suggests monetary policy is restrictive at current levels [of 4.75% to 5%] and a Republican clean sweep in the US elections – resulting in greater inflationary pressures – would simply push rate cuts further into the future rather than halting them altogether,” Oxford Economics said. Gold at $2,755.21 an ounce is up 27% year to date.
* The probability of the target rate in the 4% to 4.25% range by March is 44%, the highest among all rate likelihoods, as per the FedWatch Tool. By July, the highest probability is for rates to be 3.5% to 3.75%. “The market has removed all but five rate cuts from SOFR pricing, with almost zero cuts priced beyond July 2025,” Oxford Economics said.
* The US Dollar index at 104.30 traded close to its highest since early August. The dollar is underpinned by expectations for fewer rate cuts and growing bets of a possible return of Donald Trump as president, a D.A. Davidson note said.
US benchmark equity indexes closed mixed Friday as investors evaluated the latest corporate earnings and economic data.
The Dow Jones Industrial Average fell 0.6% to 42,114.4, while the Nasdaq Composite rose 0.6% to 18,518.6. The S&P 500 was little changed at 5,808.1. Utilities saw the steepest decline among sectors, while communication services led the gainers.
For the week, the Dow dropped 2.7%, while the S&P 500 lost 1%. The Nasdaq ticked up 0.2%.
In company news, Mohawk Industries (MHK) shares slumped nearly 14%, the biggest drop on the S&P 500. Late Thursday, the company issued a fourth-quarter earnings outlook that fell short of Wall Street estimates.
HCA Healthcare’s (HCA) third-quarter results missed the Street’s views Friday as Hurricane Helene impacted some of its facilities. The hospital operator said it expects a further hurricane-related hit in the ongoing quarter. The company’s shares tumbled 8.9%, the third-worst performer on the S&P 500.
McDonald’s (MCD) saw the steepest decline on the Dow, down 3%, after US health authorities said that the number of E. coli cases potentially linked to the fast-food giant’s Quarter Pounder hamburgers increased to 75 across 13 US states as of Thursday, adding that the actual number of sick people could be “much higher.”
Capri (CPRI) shares plunged 49% Friday following a court ruling that temporarily blocked the luxury fashion company’s proposed acquisition by Coach and Kate Spade owner Tapestry (TPR). Tapestry shares surged 14%, the top gainer on the S&P 500.
Deckers Outdoor (DECK) was the second-best performer on the S&P 500, up 11%. The company delivered a fiscal second-quarter beat late Thursday.
In economic news, US durable goods orders fell in September, weighed down by sharp declines in defense and civilian aircraft, according to government data.
“Pop the hood and the September durable goods report reveals encouraging signs of life away from the gloom of nondefense aircraft orders,” BMO said in a report. “Many months of brutal Boeing (BA) order declines have pushed nondefense aircraft orders down 43.9% from a year ago.”
US consumer sentiment this month rose to its highest level since April, while long-term inflation expectations eased, final results from the University of Michigan’s Surveys of Consumers showed.
West Texas Intermediate crude oil increased 2.1% to $71.65 a barrel Friday.
Gold rose 0.2% to $2,754.90 per troy ounce, while silver dropped 0.1% to $33.76 per ounce.
Pre-market
October 25, 2024 08:55am
08:55 AM EDT, 10/25/2024 (MT Newswires) — US equity futures posted modest gains ahead of Friday’s opening bell as traders brace for key technology earnings scheduled for release next week.
The Dow Jones Industrial Average futures gained 0.2%, S&P 500 futures increased 0.3%, and Nasdaq futures were up 0.4%.
Alphabet (GOOG, GOOGL), Microsoft (MSFT), Meta Platforms (META), Apple (AAPL), and Amazon (AMZN) are all due to report next week.
Oil prices were higher, with front-month global benchmark North Sea Brent crude up 1.1% at $75.22 per barrel and US West Texas Intermediate crude 1.1% higher at $71.04 per barrel.
New orders for durable goods, released at 8:30 am ET, fell by 0.8% in September to match the previous month’s decline, compared with estimates compiled by Bloomberg for a 1% drop.
The Consumer Sentiment Index, slated for 10 am ET, is expected to ease to 68.9 in October versus 70.1 previously.
In other world markets, Japan’s Nikkei closed 0.6% lower, Hong Kong’s Hang Seng ended 0.5% higher, and China’s Shanghai Composite finished 0.6% higher. Meanwhile, the UK’s FTSE 100 flatlined, and Germany’s DAX index gained 0.1% in Europe’s early afternoon session.
In equities, shares of Tapestry (TPR) were up 14% pre-bell after a federal court blocked the company’s proposed takeover of Capri (CPRI). Deckers Outdoor (DECK) shares rose 13% after the company lifted its fiscal 2025 revenue outlook.
On the losing side, Capri shares slumped nearly 47%. Coursera (COUR) shares fell nearly 22% after the company cut its 2024 revenue outlook.
The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.2% and the actively traded Invesco QQQ Trust (QQQ) was 0.3% higher in Friday’s premarket activity as investors’ risk appetite recovers amid continuing earnings releases.
US stock futures were also higher, with S&P 500 Index futures up 0.1%, Dow Jones Industrial Average futures advancing 0.2%, and Nasdaq futures gaining 0.3% before the start of regular trading.
The durable goods orders bulletin for September will be released at 8:30 am ET, followed by the University of Michigan’s consumer sentiment report for October at 10 am ET.
Federal Reserve Boston President Susan Collins speaks at 11 am ET.
The weekly Baker Hughes domestic oil-and-gas rig count posts at 1 pm ET.
In premarket activity, bitcoin was down by 0.4% and the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 0.3% lower.
Power Play:
Consumer
The Consumer Staples Select Sector SPDR Fund (XLP) was up 0.1%, while the Vanguard Consumer Staples Fund (VDC) was inactive. The iShares US Consumer Staples ETF (IYK) was inactive, and the Consumer Discretionary Select Sector SPDR Fund (XLY) gained 0.2%. The VanEck Retail ETF (RTH) was inactive, while the SPDR S&P Retail ETF (XRT) was 1.5% higher.
Capri Holdings (CPRI) shares were down more than 46% pre-bell after a US federal court granted the Federal Trade Commission’s request to block Tapestry’s (TPR) planned acquisition of Capri. Tapestry shares were up more than 15%.
Winners and Losers:
Industrial
Industrial Select Sector SPDR Fund (XLI) advanced 0.6% while the Vanguard Industrials Index Fund (VIS) and the iShares US Industrials ETF (IYJ) were inactive.
Joby Aviation (JOBY) stock was down more than 15% before the opening bell after the company said it priced an underwritten public offering of 40 million common shares at $5.05 apiece for expected gross proceeds of $202 million.
Technology
Technology Select Sector SPDR Fund (XLK) gained 0.3%, and the iShares US Technology ETF (IYW) was inactive, while the iShares Expanded Tech Sector ETF (IGM) was marginally up by 0.01%. Among semiconductor ETFs, SPDR S&P Semiconductor ETF (XSD) increased by 0.3%, while the iShares Semiconductor ETF (SOXX) rose by 0.5%.
Western Digital (WDC) stock was up more than 10% in recent premarket activity after Goldman Sachs and Morgan Stanley raised their price targets for the company following Western’s swing to fiscal Q1 non-GAAP earnings on higher revenue.
Health Care
The Health Care Select Sector SPDR Fund (XLV) advanced 0.2%. The Vanguard Health Care Index Fund (VHT) was flat while the iShares US Healthcare ETF (IYH) rose 2.6%. The iShares Biotechnology ETF (IBB) was flat.
Sanofi (SNY) stock was up 3.1% premarket after the company reported higher Q3 earnings and net sales.
Financial
Financial Select Sector SPDR Fund (XLF) advanced 0.3%. Direxion Daily Financial Bull 3X Shares (FAS) was up 0.8%, while its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was 0.9% lower.
NatWest Group (NWG) shares were up 3.3% pre-bell Friday after the company reported higher Q3 results that also surpassed Capital IQ analysts’ estimates.
Energy
The iShares US Energy ETF (IYE) was inactive, while the Energy Select Sector SPDR Fund (XLE) was up by 0.1%.
NOV (NOV) was up 2% before Friday’s opening bell after the company reported higher Q3 earnings late Thursday.
Commodities
Front-month US West Texas Intermediate crude oil rose 0.9% to $70.81 per barrel on the New York Mercantile Exchange. Natural gas advanced marginally by 0.04% to $2.52 per 1 million British Thermal Units. United States Oil Fund (USO) was up 0.3%, while the United States Natural Gas Fund (UNG) lost 1.5%.
Gold futures for December declined 0.4% to $2,737.50 an ounce on the Comex, while silver futures fell 1% to $33.48 an ounce. SPDR Gold Shares (GLD) retreated 0.3%, and iShares Silver Trust (SLV) was 1% lower.
Wall Street futures pointed moderately higher pre-bell Friday as traders digested the earnings season and took positions ahead of tech-enterprise results slated for next week.
Blue-chips Google (GOOG, GOOGL), Apple (AAPL) and Amazon.com (AMZN) report quarterly earnings next week, among many others. EV maker Tesla finished up 21.9% Thursday after reporting quarterly earnings along with upbeat guidance.
Deckers Outdoor (DECK) rose 14.4% pre-bell after the footwear maker reported strong fiscal Q2 results and boosted guidance late Thursday.
In the futures, the S&P 500 rose 0.3%, the Nasdaq inclined 0.3% and the Dow Jones rose 0.2%.
In earnings news, Centene (CNC) rose 14.1% pre-bell after the company reported Q3 adjusted earnings off on year but above the outlook of analysts surveyed by Capital IQ. Company revenue gained on year and topped expectations.
Carter’s (CRI) traded evenly pre-bell after the children’s apparel seller reported fiscal Q3 adjusted net income and sales down on year but above the analysts’ consensus. The clothing company modestly boosted guidance.
Asian exchanges traded choppily overnight, with China-exposed equity markets gaining after a report pointed to improved housing sales on the mainland.
European bourses tracked steadily midday on the continent.
HCA Healthcare (HCA) plans to report earnings pre-bell, among others.
On the economic calendar is the durable goods orders for September bulletin at 8:30 am ET, followed by the University of Michigan consumer sentiment report for October at 10 am.
The weekly Baker Hughes domestic oil-and-gas rig count posts at 1 pm.
Federal Reserve Boston President Susan Collins speaks at 11 am.
In premarket action, Bitcoin traded at $67,777, West Texas Intermediate crude oil traded higher at $7069, and 10-year US Treasuries offered 4.20%. Spot gold traded for $2,719 an ounce.
Closing Summary
The Nasdaq Composite and the S&P 500 closed higher Thursday, boosted by a rally in Tesla (TSLA) shares, while the Dow Jones Industrial Average fell.
The Nasdaq rose 0.8% to 18,415.5, and the S&P advanced 0.2% to 5,809.9. The Dow dropped 0.3% to 42,374.4. Consumer discretionary led the gainers among sectors, while materials posted the biggest drop.
Tesla shares surged 22%, the biggest gain on the S&P and the Nasdaq. On Wednesday, the electric vehicle maker posted a surprise gain in Q3 earnings and issued a bullish outlook on 2025 volume growth.
Molina Healthcare (MOH) shares jumped 18%, the second-largest gain on the S&P. On Wednesday, the company reported Q3 adjusted earnings and revenue that topped estimates.
IBM (IBM) shares dropped 6.2%, the steepest decline on the Dow. Late Wednesday, the company posted Q3 revenue that trailed estimates and declines in consulting and infrastructure segments.
Newmont (NEM) shares slumped 15%, the biggest drop on S&P 500, after Q3 adjusted earnings and revenue missed estimates.
The US 10-year yield decreased 3.2 basis points to 4.21%, while the two-year rate lost 1.2 basis points to 4.07%.
In economic news, new-home sales in the US rose more than expected last month, while median prices at the national level picked up sequentially and annually, government data showed.
“There was no discernible impact on sales in the South from Hurricane Helene,” Oxford Economics said.
US private-sector output expanded in October, while the year-ahead outlook reached a 29-month high, according to S&P Global’s (SPGI) flash purchasing managers’ index.
“Companies hope that a stabler post-election environment is more conducive to growth,” said Chris Williamson, S&P Global Market Intelligence chief business economist. “This is especially so in the manufacturing sector, where factories hope that the current soft patch in production and sales will reverse as the uncertainty caused by the political environment passes.”
Weekly applications for unemployment insurance in the US declined last week, while continuing claims rose to the highest since November 2021, according to government data.
Manufacturing activity in the US Midwest region improved to shallower contraction territory this month, according to data from the Federal Reserve Bank of Kansas City.
West Texas Intermediate crude oil dropped 0.3% to $70.53 a barrel Thursday.
While the Federal Reserve has made “good progress” in bringing inflation down, it’s still running above policymakers’ 2% target, Cleveland Fed President Beth Hammack said, according to Reuters.
Gold rose 0.7% to $2,749 per troy ounce, while silver dropped 0.1% to $33.82 per ounce.
Pre-Market
US equity futures were mixed ahead of Thursday’s opening bell, with futures of the technology-heavy Nasdaq Composite index rising after upbeat earnings from electric vehicle maker Tesla (TSLA).
Dow Jones Industrial Average futures slipped 0.1%, S&P 500 futures rose 0.4%, and Nasdaq futures were up 0.9%.
Tesla reported late Wednesday higher Q3 adjusted earnings and revenue and projected a “slight growth” in vehicle deliveries for 2024.
Oil prices were higher, with front-month global benchmark North Sea Brent crude up 0.6% at $75.44 per barrel and US West Texas Intermediate crude up 0.9% at $71.41 per barrel.
New unemployment claims, released at 8:30 am ET, fell to 227,000 in the week ended Oct. 19 from 242,000 in the preceding week, compared with estimates compiled by Bloomberg for 227,000.
The S&P Global US manufacturing Purchasing Managers’ Index, due at 9:45 am ET, is seen coming in at 47.5 in October versus 47.3 in the prior month, while the services component is seen coming in at 55.0 versus 55.2 previously.
New home sales, slated for 10 am ET, are expected to increase to 719,000 in September from 716,000 in August.
In other world markets, Japan’s Nikkei closed 0.1% higher, Hong Kong’s Hang Seng ended 1.3% lower, and China’s Shanghai Composite finished 0.7% lower. Meanwhile, UK’s FTSE 100 rose 0.5% and Germany’s DAX index was up 0.8% in Europe’s early afternoon session.
In equities, Tesla shares were up more than 14%. West Pharmaceuticals (WST) shares increased 9% after the company posted Q3 adjusted earnings and revenue that topped analysts’ estimates and issued guidance that also beat projections.
On the losing side, Osisko Development (ODV) shares fell 25% after the company launched a $50 million private placement of securities. Icon (ICLR) shares retreated 15% after reporting a lower Q3 revenue and issuing a weaker 2024 outlook.
The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.5% and the actively traded Invesco QQQ Trust (QQQ) was 0.9% higher in Thursday’s premarket activity amid Tesla’s (TSLA) forecast-beating earnings and upbeat guidance.
US stock futures were mixed, with S&P 500 Index futures up 0.5%, Dow Jones Industrial Average futures slipping 0.1%, and Nasdaq futures gaining 0.9% before the start of regular trading.
The weekly jobless claims bulletin and the Chicago Fed National Activity Index for September will be released at 8:30 am ET.
October’s S&P Global US PMI composite flash will be released at 9:45 am ET, followed by the September new home sales bulletin at 10 am ET.
The weekly EIA natural gas supplies report posts at 10:30 am ET, followed by the Kansas City Fed Manufacturing Index for October at 11 am ET.
Cleveland Federal Reserve President Beth Hammack is slated to speak at 8:45 am ET.
In premarket activity, bitcoin was up by 1.1% and the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 1% higher.
Power Play:
Health Care
The Health Care Select Sector SPDR Fund (XLV) advanced 0.2%. The Vanguard Health Care Index Fund (VHT) gained 0.3% while the iShares US Healthcare ETF (IYH) and the iShares Biotechnology ETF (IBB) were inactive.
West Pharmaceutical Services (WST) shares were up 10% premarket after the company raised its fiscal 2024 guidance.
Winners and Losers:
Consumer
The Consumer Staples Select Sector SPDR Fund (XLP) was up 0.1%, while the Vanguard Consumer Staples Fund (VDC) was inactive. The iShares US Consumer Staples ETF (IYK) was inactive, and the Consumer Discretionary Select Sector SPDR Fund (XLY) gained 1.8%. The VanEck Retail ETF (RTH) was inactive, while the SPDR S&P Retail ETF (XRT) was up 0.3%.
Darling Ingredients (DAR) stock was down more than 7% pre-bell after the company reported lower Q3 earnings and net sales.
Industrial
Industrial Select Sector SPDR Fund (XLI) advanced 0.1% while the Vanguard Industrials Index Fund (VIS) and the iShares US Industrials ETF (IYJ) were inactive.
United Parcel Service (UPS) stock rose more than 7% before the opening bell after the delivery service reported higher Q3 adjusted earnings and revenue.
Technology
Technology Select Sector SPDR Fund (XLK) increased 0.6%, and the iShares US Technology ETF (IYW) was flat, while the iShares Expanded Tech Sector ETF (IGM) was up 0.01%. Among semiconductor ETFs, SPDR S&P Semiconductor ETF (XSD) was flat, while the iShares Semiconductor ETF (SOXX) rose by 1.3%.
WEX (WEX) shares were down more than 5% in recent Thursday premarket activity after the company reported Q3 results that trailed analyst estimates and cut its full-year guidance.
Financial
Financial Select Sector SPDR Fund (XLF) advanced 0.3%. Direxion Daily Financial Bull 3X Shares (FAS) was up 0.8%, while its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 0.9%.
KKR (KKR) shares were up 4.1% pre-bell Thursday after the company reported higher Q3 adjusted earnings and revenue.
Energy
The iShares US Energy ETF (IYE) was inactive, while the Energy Select Sector SPDR Fund (XLE) was up by 0.3%.
Expro Group (XPRO) shares were down 2.3% before Thursday’s opening bell after the company posted Q3 adjusted earnings that trailed Capital IQ analysts’ estimates and narrowed its 2024 revenue guidance.
Commodities
Front-month US West Texas Intermediate crude oil rose 1.1% to $71.57 per barrel on the New York Mercantile Exchange. Natural gas increased 1.8% to $2.38 per 1 million British Thermal Units. United States Oil Fund (USO) was up 0.7%, while the United States Natural Gas Fund (UNG) lost 0.1%.
Gold futures for December gained 0.7% to reach $2,748.80 an ounce on the Comex, while silver futures advanced 1.3% to $34.28 an ounce. SPDR Gold Shares (GLD) advanced 0.7%, and iShares Silver Trust (SLV) was 1.1% higher.
Wall Street futures pointed moderately higher pre-bell Thursday after EV-maker Tesla (TSLA) overnight reported higher Q3 earnings and revenue.
Led by a 12% rise in Tesla shares, the S&P 500 gained 0.5%, the Nasdaq edged 0.8% higher, while the Dow Jones lagged marginally.
Asian exchanges traded mostly lower overnight on prospects for tempered rates cuts from the US Federal Reserve. Meanwhile, European bourses tracked moderately higher midday on the continent.
In earnings news, United Parcel Service (UPS) shares were up 6.8% pre-bell after the company reported higher Q3 adjusted earnings and revenue that also surpassed Capital IQ analysts’ estimates.
Honeywell International (HON) stock was nearly 3% lower after the company posted Q3 revenue that trailed Capital IQ analysts’ forecasts and cut its fiscal 2024 sales guidance.
Textron (TXT) shares were down 2.9% pre-bell after the company reported lower fiscal Q3 adjusted earnings and trimmed its fiscal 2024 non-GAAP EPS guidance.
On the economic calendar is the weekly jobless claims bulletin at 8:30 am ET, along with the Chicago Fed National Activity Index for September.
The S&P Global US PMI composite flash for October posts at 9:45 am, followed by the September new home sales bulletin at 10 am.
The weekly EIA natural gas supplies report is due at 10:30 am, followed by the Kansas City Fed Manufacturing Index for October at 11 am.
Cleveland Federal Reserve President Beth Hammack speaks at 8:45 am ET.
In premarket activity, Bitcoin traded at $66,991, West Texas Intermediate crude oil traded higher at $71.94, and 10-year US Treasuries offered 4.19%. Spot gold prospected for new all-time highs at $2,739 an ounce.
Closing Summary
04:26 PM EDT, 10/23/2024 US benchmark equity indexes closed lower Wednesday as traders assessed the latest corporate earnings and economic data.
The Nasdaq Composite fell 1.6% to 18,276.7, while the Dow Jones Industrial Average dropped 1% to 42,515. The S&P 500 lost 0.9% to 5,797.4. Consumer discretionary and technology saw the steepest declines among sectors. Only real estate and utilities closed higher.
In company news, Enphase Energy (ENPH) shares slumped nearly 15%, the worst performer on the S&P 500. The company’s Q3 financial results fell short of Wall Street’s expectations late Tuesday, prompting rating downgrades by multiple analysts.
CoStar Group (CSGP) shares decreased 5.3%, among the worst performers on the S&P 500 and the Nasdaq. Late Tuesday, the company logged Q3 revenue that missed the Street’s views.
McDonald’s (MCD) saw the steepest decline on the Dow and among the steepest on the S&P 500 Wednesday, down 5.1%. US health authorities said they are investigating an E. coli outbreak in several states linked to the fast-food giant’s Quarter Pounder burgers.
Teledyne Technologies (TDY) was the second-best performer on the S&P 500, up 6%, following a Q3 beat.
AT&T (T) posted an unexpected quarterly decline in revenue amid challenges in business wireline that led to a multi-billion dollar write-down, though it remains on track to meet its full-year targets. The company’s shares rose 4.6%, among the top gainers on the S&P 500.
The US 10-year yield increased 3.2 basis points to 4.24%, while the two-year rate added 4.1 basis points to 4.08%.
In economic news, economic activity was “little changed” in almost all Federal Reserve districts since early September, though the long-term outlook reflected slightly better optimism, the central bank said in its latest Beige Book. Manufacturing activity fell in most districts, according to the report, which was prepared based on information collected by Oct. 11.
US existing home sales unexpectedly dropped in September, though signs usually tied to higher sales are emerging, according to data released by the National Association of Realtors.
“There are more inventory choices for consumers, lower mortgage rates than a year ago and continued job additions to the economy,” NAR Chief Economist Lawrence Yun said.
Mortgage application volume in the US declined for the fourth consecutive week to its lowest point since July amid lower purchase and refinancing activities, the Mortgage Bankers Association said.
West Texas Intermediate crude oil dropped 1.1% to $70.98 a barrel Wednesday.
Commercial crude stockpiles in the US rose by 5.5 million barrels to 426 million barrels through the week ended Friday, the Energy Information Administration said. The consensus was for a gain of 1 million barrels, according to a Bloomberg poll.
Gold fell 1.1% to $2,730.10 per troy ounce, while silver dropped 3.4% to $33.85 per ounce.
Pre-market
October 23, 2024 09:23am
US stocks look set to open lower in Wednesday’s trading session ahead of existing home sales figures, crude oil inventories, and a speech by Federal Reserve board member Michelle Bowman.
The Dow Jones Industrial Average futures were down 0.6%, S&P 500 futures were off 0.3%, and Nasdaq futures were moving 0.4% lower.
Existing home sales for September, released by the National Association of Realtors, are expected to rise to 3.88 million from 3.86 million in August, according to Bloomberg. The report can be an indicator of the US housing market’s condition as well as a gauge of overall economic strength.
Crude oil inventories from the Energy Information Administration, which measures the weekly change in the number of barrels of commercial crude oil held by US firms, are expected to come in at 700,000, compared with -2.2 million the previous month, according to Bloomberg.
US Federal Reserve’s Bowman is speaking at the Eighth Annual Fintech Conference, with investors looking for hints on the Fed’s future considerations regarding interest rates. Bowman had dissented the Federal Open Market Committee’s decision to cut rates.
Oil prices were tumbling lower, with front-month global benchmarks Brent crude and West Texas Intermediate crude falling 1.7% and 1.8%, respectively.
In other world markets, Japan’s Nikkei declined 0.8%, Hong Kong’s Hang Seng rose 1.3%, and China’s Shanghai Composite was up 0.5%. Meanwhile in Europe’s early afternoon session, the UK’s FTSE 100 was down 0.6%, while Germany’s DAX and France’s CAC were off 0.2% and 0.7%, respectively.
In equities, shares of Virax Biolabs Group (VRAX) were up 70% after the company said Wednesday that its Cambridge Bioscience unit signed a distribution deal with Europa Biosite to commercialize the company’s ImmuneSelect Research Use portfolio in the UK and Ireland. DBV Technologies’ (DBVT) stock was 61% higher in Wednesday’s premarket session after the company reported late Tuesday positive regulatory updates for its Viaskin Peanut Patch in the US and Europe. Spirit Airlines’ (SAVE) shares were up 30% after The Wall Street Journal reported, citing sources, that Frontier Group (ULCC) is exploring reviving its bid for the airline and that the companies have held early-stage discussions for a possible merger.
On the losing side, shares of Alto Neuroscience (ANRO) were down 63% after the company said late Tuesday that a phase 2b study of ALTO-100 in patients with major depressive disorder failed to meet its primary endpoint. Genprex (GNPX) stock was 18% lower after rising nearly 138% the previous session. Constellium (CSTM) shares were down 17% after the company reported lower Q3 earnings and revenue that also missed Capital IQ analysts’ expectations. Shares of Enphase Energy (ENPH) fell 16% after the company overnight reported lower Q3 non-GAAP earnings and revenue that also trailed analyst estimates.
The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was down 0.2% and the actively traded Invesco QQQ Trust (QQQ) was 0.3% lower in Wednesday’s premarket activity as investors await Tesla’s (TSLA) earnings release.
US stock futures were also lower, with S&P 500 Index futures down 0.3%, Dow Jones Industrial Average futures slipping 0.5%, and Nasdaq futures retreating 0.4% before the start of regular trading.
US mortgage applications dropped 6.7% to a three-month low last week as rates for 30-year fixed loans remained at 6.52%, according to the Mortgage Bankers Association’s report Wednesday.
Fed Governor Michelle Bowman speaks at 9 am ET.
The September existing home sales bulletin will be released at 10 am ET, along with the Atlanta Fed Business Inflation Expectations for October report.
The weekly EIA domestic petroleum status report posts at 10:30 am ET.
Richmond Fed President Thomas Barkin is slated to speak at 12 pm.
The Federal Reserve’s Beige Book, a compendium of economic and business reports from the 12 regional branches, posts at 2 pm ET.
In premarket activity, bitcoin was down by 1.4% and the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 1.5% lower.
Power Play:
Industrial
Industrial Select Sector SPDR Fund (XLI) was flat while the Vanguard Industrials Index Fund (VIS) and the iShares US Industrials ETF (IYJ) were inactive.
Spirit Airlines (SAVE) shares were up more than 32% before the opening bell after The Wall Street Journal reported, citing people familiar with the matter, that Frontier Group Holdings (ULCC) has held early-stage discussions to explore a renewed bid for Spirit.
Winners and Losers:
Financial
Financial Select Sector SPDR Fund (XLF) retreated marginally by 0.04%. Direxion Daily Financial Bull 3X Shares (FAS) was down 0.1%, while its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was 0.3% higher.
TransUnion (TRU) shares were up 4% pre-bell Wednesday after the company reported higher Q3 adjusted earnings and revenue alongside increasing its guidance for 2024.
Consumer
The Consumer Staples Select Sector SPDR Fund (XLP) was down 0.4%, while the Vanguard Consumer Staples Fund (VDC) was inactive. The iShares US Consumer Staples ETF (IYK) was inactive, and the Consumer Discretionary Select Sector SPDR Fund (XLY) lost 0.7%. The VanEck Retail ETF (RTH) and the SPDR S&P Retail ETF (XRT) were inactive.
Hilton Worldwide Holdings (HLT) shares were down 3.9% pre-bell after the company reported lower-than-expected Q3 revenue and offered tepid fiscal 2024 guidance.
Technology
Technology Select Sector SPDR Fund (XLK) retreated 0.2%, and the iShares US Technology ETF (IYW) was 0.1% higher, while the iShares Expanded Tech Sector ETF (IGM) was inactive. Among semiconductor ETFs, SPDR S&P Semiconductor ETF (XSD) was inactive, while the iShares Semiconductor ETF (SOXX) fell by 0.2%.
Roper Technologies (ROP) stock was up 1.4% in recent Wednesday premarket activity after the company reported higher Q3 adjusted earnings and revenue.
Energy
The iShares US Energy ETF (IYE) was inactive, while the Energy Select Sector SPDR Fund (XLE) was down by 0.3%.
Range Resources (RRC) stock was up 1.2% before Wednesday’s opening bell after the company reported higher Q3 financial results late Tuesday.
Health Care
The Health Care Select Sector SPDR Fund (XLV) was flat. The Vanguard Health Care Index Fund (VHT) was up 0.1% while the iShares US Healthcare ETF (IYH) and the iShares Biotechnology ETF (IBB) were inactive.
Boston Scientific (BSX) stock was up 1% premarket after the company reported higher Q3 adjusted earnings and revenue in addition to lifting its 2024 guidance.
Commodities
Front-month US West Texas Intermediate crude oil fell 2.1% to $70.27 per barrel on the New York Mercantile Exchange. Natural gas declined 1.8% to $2.27 per 1 million British Thermal Units. United States Oil Fund (USO) was down 1.4%, while the United States Natural Gas Fund (UNG) lost 1%.
Gold futures for December gained 0.2% to reach $2,765.50 an ounce on the Comex, while silver futures lost 0.7% to $34.79 an ounce. SPDR Gold Shares (GLD) advanced 0.1%, and iShares Silver Trust (SLV) was 0.6% lower.
US stocks look set to open lower in Tuesday’s trading session as investors await more earnings reports coming out this week as well as comments expected later in the morning from Federal Reserve Bank of Philadelphia President Patrick Harker.
The Dow Jones Industrial Average futures were down 0.4%, S&P 500 futures were off 0.5%, and Nasdaq futures were moving 0.7% lower.
Harker will speak later in the morning at a fintech conference. Investors will be looking for any clues in his comments on the Fed’s future monetary policy moves.
The American Petroleum Institute will release its weekly crude oil data, which gauges petroleum demand in the US, later in the afternoon.
Oil prices were moving higher, with front-month global benchmarks Brent crude and West Texas Intermediate crude rising 0.5% and 0.7% respectively.
In other world markets, Japan’s Nikkei fell 1.4%, Hong Kong’s Hang Seng was up 0.1%, and China’s Shanghai Composite rose 0.5%. Meanwhile in Europe’s early afternoon session, the UK’s FTSE 100 was off 0.5%, while Germany’s DAX and France’s CAC declined 0.3% and 0.4% respectively.
In equities, shares of Ensysce Biosciences’ (ENSC) soared 177% in Tuesday’s premarket session, adding to a 16% gain from the previous session. Genprex (GNPX) shares shot up more than 123% after skyrocketing 260% on Monday. Shares of SRM Entertainment (SRM) jumped 40%, following a 3.6% gain on Monday. TC Biopharm (TCBP) shares surged 41%, erasing much of its 55% loss the previous session after it reported Tuesday that it has signed a research planning collaboration with Dr. Carlos Maluquer de Motes to develop a treatment for monkeypox. Shares of Urgent.ly (ULY) advanced 34% after a 1.7% loss on Monday.
On the losing side, shares of GRI Bio (GRI) plunged 22% after it said late Monday that it agreed to exercise certain warrants at a reduced exercise price of $1 per share. IN8bio’s (INAB) shares tumbled 16% after jumping 75% the previous session. Shares of DMC Global (BOOM) fell 23% after the company cut Q3 sales guidance late Monday and flagged a $142 million noncash goodwill impairment charge. Sensei Biotherapeutics (SNSE) dropped 19% after jumping 78% the previous session. Shares of urban-gro (UGRO) lost nearly 14%, erasing Monday’s 12% gain.
Closing Summary — 10/22/24. The Dow Jones Industrial Average and the S&P 500 retreated from Friday’s record-high closings on Monday as markets awaited the latest financial results from major companies due later in the week.
The Dow fell 0.8% to 42,931.6, while the S&P 500 dropped 0.2% to 5,854. The Nasdaq Composite rose 0.3% to 18,540. Barring technology, all sectors closed lower, led by real estate.
Tesla (TSLA), Boeing (BA), Coca-Cola (KO), T-Mobile US (TMUS), IBM (IBM), GE Aerospace (GE), Philip Morris International (PM), Verizon Communications (VZ), AT&T (T), Lockheed Martin (LMT), United Parcel Service (UPS) and Southwest Airlines (LUV) are among the major companies expected to report their latest quarterly results later this week.
In company news, Microchip Technology (MCHP) shares fell 2.8%, among the steepest decliners on the Nasdaq, as Susquehanna adjusted its price target on the stock to $95 from $105.
Boeing was the top gainer on the Dow and among the best on the S&P 500, up 3.1%. The plane maker reached a new tentative labor deal with the International Association of Machinists and Aerospace Workers union to end a strike, Boeing and the union said Saturday.
Kenvue (KVUE) shares rose 5.5% Monday, the best performer on the S&P 500. Hedge fund Starboard Value has acquired a stake in the company, media outlets reported Sunday, citing unnamed sources.
The US 10-year yield jumped 11.9 basis points to 4.19% Monday, while the two-year rate rose 7.2 basis points to 4.03%.
The Federal Reserve should “gradually” reduce its benchmark lending rate to help manage risks to inflation and the labor market if the economy evolves as projected, Dallas Fed President Lorie Logan said.
Although the economy is strong and stable, the macro outlook continues to face “meaningful” uncertainties, Logan said. Downside risks to the labor market have grown, while inflation poses “diminished but still real upside” risks, she added.
West Texas Intermediate crude oil increased 1.6% to $70.36 a barrel. “Oil prices were up, following a more than 7% drop last week on worries about demand in China, and an easing of concerns about potential supply disruptions in the Middle East,” D.A. Davidson said in a note to clients.
Losses from hurricanes Helene and Milton could amount to $80 billion and trim roughly 0.28% off US gross domestic product over the next two quarters, Wells Fargo Investment Institute said.
Gold gained 0.2% to $2,734.30 per troy ounce, while silver jumped 2.4% to $34.02 per ounce.
Pre-market Summary 10/21/2024
US equity futures dropped Monday premarket ahead of a busy week of quarterly updates from Corporate America.
Dow Jones Industrial Average futures slipped 0.1%, S&P 500 futures declined 0.3%, and Nasdaq futures were down 0.5%.
Technology firms Amazon (AMZN) and Tesla (TSLA) are some of the highlights for this week’s earnings slate.
Oil prices were higher, with front-month global benchmark North Sea Brent crude up 1.5% at $74.14 per barrel and US West Texas Intermediate crude 1.8% higher at $69.90 per barrel.
The US index of leading economic indicators, scheduled for release at 10 am ET, is seen dropping by 0.3% in September following a 0.2% downtick in the previous month, according to estimates compiled by Bloomberg.
In other world markets, Japan’s Nikkei closed 0.07% lower, Hong Kong’s Hang Seng ended 1.6% lower, and China’s Shanghai Composite finished 0.2% higher. Meanwhile, UK’s FTSE 100 declined 0.3% and Germany’s DAX 30 index fell 0.8%, while France’s CAC 40 also was down 0.8% and Spain’s IBEX 35 was off 0.5% in Europe’s early afternoon session.
In equities, Siyata Mobile (SYTA) shares surged 143% pre-bell after the company said that T-Mobile (TMUS) will start offering the company’s mission-critical push-to-talk 5G cellular radio handsets.
On the losing side, ServiceNow (NOW) shares fell 1.6% after Morgan Stanley downgraded the stock to equalweight from an overweight rating.
The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was down 0.3% and the actively traded Invesco QQQ Trust (QQQ) was 0.4% lower in Monday’s premarket activity, as investors prepare for major earnings week followed by Federal Reserve’s presidents’ speeches on the economy and outlook.
US stock futures were also lower, with S&P 500 Index futures down 0.3%, Dow Jones Industrial Average futures slipping 0.2%, and Nasdaq futures retreating 0.5% before the start of regular trading.
Federal Reserve Dallas President Lorie Logan will speak around 9 am ET at the 2024 Securities Industry and Financial Markets Association annual meeting, followed by the leading economic indicators index for September release at 10 am ET.
Fed Minneapolis President Neel Kashkari will speak at 1 pm ET at the Chippewa Falls Area Chamber of Commerce in Wisconsin, while Fed Kansas City President Jeffrey Schmid will speak at 5 pm ET on the economic and monetary policy outlook at a Chartered Financial Analyst Society’s event.
In premarket activity, bitcoin was down 0.3% and the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 0.5% lower.
Power Play:
Technology
Technology Select Sector SPDR Fund (XLK) was 0.7% lower. The iShares US Technology ETF (IYW) slipped 0.5%, while the iShares Expanded Tech Sector ETF (IGM) gained 1%. Among semiconductor ETFs, SPDR S&P Semiconductor ETF (XSD) was inactive, while the iShares Semiconductor ETF (SOXX) was down 1%.
Siyata Mobile (SYTA) shares surged 122% in recent Monday premarket activity after it said that T-Mobile (TMUS) will offer the company’s push-to-talk cellular radio handsets.
Winners and Losers:
Industrial
Industrial Select Sector SPDR Fund (XLI) retreated 0.2%, while the Vanguard Industrials Index Fund (VIS) was flat. The iShares US Industrials ETF (IYJ) was inactive.
Piedmont Lithium (PLL) stock fell more than 5% before Monday’s bell after JPMorgan downgraded it to underweight from neutral and trimmed its price target to $8 from $9.
Health Care
The Health Care Select Sector SPDR Fund (XLV) was marginally up by 0.02%. The Vanguard Health Care Index Fund (VHT) was flat, while the iShares US Healthcare ETF (IYH) was inactive. The iShares Biotechnology ETF (IBB) was 0.2% lower.
Elevai Labs (ELAB) stock was 4% higher before the bell Monday after its Elevai Biosciences unit reported “encouraging” past preclinical data from 2022 for EL-32, a dual-action blocker for myostatin and activin-A.
Energy
The iShares US Energy ETF (IYE) was up 0.3%, while the Energy Select Sector SPDR Fund (XLE) was 0.6% higher.
BKV (BKV) shares rose around 3% before the bell on Monday, after KeyBanc initiated its coverage at overweight with a $23 price target, while Jefferies started its coverage at buy with a $28 price target.
Financial
Financial Select Sector SPDR Fund (XLF) was down 0.1%. Direxion Daily Financial Bull 3X Shares (FAS) was 0.6% lower, while its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was 0.6% higher.
Sandy Spring Bancorp (SASR) shares were up 2.3% before the bell Monday after it agreed to be acquired by Atlantic Union Bankshares (AUB) in an all-stock deal valued at about $1.6 billion.
Consumer
The Consumer Staples Select Sector SPDR Fund (XLP) was down 0.1%, while the Vanguard Consumer Staples Fund (VDC) was flat. The iShares US Consumer Staples ETF (IYK) was inactive, and the Consumer Discretionary Select Sector SPDR Fund (XLY) declined 0.6%. The VanEck Retail ETF (RTH) was inactive, while the SPDR S&P Retail ETF (XRT) marginally advanced by 0.04%.
Delta Air Lines (DAL) shares slipped 1.8% before Monday’s opening bell after media outlets reported its flight to New York made an emergency stop due to a technical fault at the Blaise Diagne International Airport in Senegal on Saturday.
Commodities
Front-month US West Texas Intermediate crude oil advanced 2% to $70.03 per barrel on the New York Mercantile Exchange. Natural gas gained 3.4% to reach $2.33 per 1 million British Thermal Units. United States Oil Fund (USO) increased by 1.4%, while the United States Natural Gas Fund (UNG) was 1.7% higher.
Gold futures for December rose 0.8% to $2,750.50 an ounce on the Comex, while silver futures gained 2.9% to reach $34.20 an ounce. SPDR Gold Shares (GLD) advanced 0.6%, and iShares Silver Trust (SLV) was 1.4% higher.