Here are five things you must know for Monday, October 10:
1. – Stock Futures Mixed as October Rally Faces Inflation Test
US equity futures fell slightly on Monday, while the dollar consolidated gains against its global peers, as investors extended their retreat from the market. risks following the escalation of military action in Ukraine and before the unofficial start of the third quarter earnings season later this week.
Reports from Kyiv show Russia bombing both the Ukrainian capital as well as energy facilities in cities across the country on Monday in apparent retaliation for the destruction of a key bridge linking Crimea with the mainland.
The attacks on Kyiv, the most significant in several weeks, rattled global markets and pushed investors into the arms of the safe-haven US dollar, which rose 0.4% against other currencies. global trade to change hands at 113,321 in overnight trading.
The dollar index, which tracks the greenback against a basket of six global currencies, was also lifted by last week’s stronger-than-expected September payrolls report, showing US employers had added 263,000 new jobs last month, attracting attention unemployment interest rates to 3.5% and bolster the case for another larger rate hike from the Federal Reserve next month.
In fact, CME Group’s FedWatch closes for the fourth time in a row 75 base point odds increase just under 80%, with the majority of bets pointing to Fed Funds rate from 4.5% to 4.75% at the end of the year.
That escalation trimmed a short-term rally on Wall Street last week and looks set to hang over the stock market at the start of trading on Monday, as investors look ahead to a week ahead. busy for economic data and earnings releases, as well as minutes from the Fed’s September meeting on Wednesday.
The S&P 500Still, up 1.51% on the month, despite Friday’s sell-off, though that’s compared to a 23.6% drop on the year, one of the worst performances for the benchmark. mainstream of the United States for at least two decades.
Futures contracts tied to the S&P 500 are showing a 7-point drop at the open, while contracts linked to the Dow Jones Industrial Average, up 2% for the month, are priced for a pullback 15 points. Contracts tied to the tech-focused Nasdaq are showing a 40-point drop.
Overnight in Asia, Chinese markets reopened after that country’s traditional October week, with tech stocks leading the indexes plunging after the Biden administration’s move to tighten restrictions. regulations on export of semiconductor technology.
The non-Japanese MSCI benchmark across the region was down 1.95% in final trading hours, while the Nikkei 225 in Tokyo was 0.71% lower after Friday’s close on Wall Street.
In Europe, the Stoxx 500 across the region fell 0.63%, with Britain’s FTSE 100 down 0.77% following a step up in bond buying from the Bank of England as sterling rose to 1, 10 against the US dollar.
2. – Last week: Earnings, Inflation and Fed Minutes in Focus
Inflation and earnings are likely to determine market direction this weekend as investors look for any hint of a deceleration in consumer price pressures and their impact on corporate profits in the coming weeks. the last months of the year.
Thursday of September inflationary read, scheduled for 8:30 a.m. Eastern time, is expected to show a moderation in headline interest but another modest acceleration in core consumer price pressures, a combination that is likely not to change the Fed’s rate hike path nor its determination to keep it good next year.
The data will follow the minutes of the Fed’s October meeting, due Wednesday afternoon, and the unofficial start of the third-quarter earnings season on Friday, with September quarter updates from JPMorgan Chase. (JPM) Citigroup (OLD) Wells Fargo (WFC) and Morgan Stanley (TEACHER) .
According to data from Refinitiv, S&P 500 collective profits are expected to grow 4.1% year over year to $463.9 billion, led by gains from both the energy and industrial sectors.
3. – Tesla hits sales record in September in China after Shanghai restarts
Tesla (TSLA) Shares fell in pre-market trading, tracking a slump in the tech sector, after data from China showed record sales in September.
The China Passenger Car Association (CPAC) said Tesla delivered 83,155 vehicles last month, up 8% from August, breaking the group’s previous best of just under 79,000 vehicles recorded in June. .
Tesla, which restarted its giga plant in Shanghai after scheduled maintenance in July, reported global deliveries last week of 343,830 units for the three months ended September, an other profile of the company.
The team will announce third-quarter earnings on October 19.
Tesla shares were 1.54% lower in pre-opening trading, indicating an opening price of $219.63 per share.
4. – Ford, GM shares plunge after UBS downgrade
Ford Motor (F) shares fell lower in pre-market trading after analysts at UBS downgraded their ratings and price targets on the automaker
UBS analyst Patrick Hummel downgraded his stock’s rating to ‘sell’ from ‘neutral’ and slashed $3 off his price target to a new $10/share ahead of earnings. the group’s third quarter at the end of this month,
Hummel also lowered his rating on General Motors (GM) to ‘sell’ from ‘neutral’, citing the risk that profits could “more than halve” next year amid rapidly accelerating demand for destruction. His new GM price target is set at $38 per share, $18 down from his previous estimate.
Ford shares were 4.1% lower in pre-market trading at an opening price of $11.70 per share. Meanwhile, shares of General Motors fell 3.03% to $32.60 per share.
5. – Twitter shares close to Musk takeover price of $54.20
Twitter (TWTR) Shares edged higher in pre-market trading as investors pushed shares near $54.20 at which point Tesla billionaire CEO Elon Musk looks set to buy the social media group next week. at the end of this month.
Musk, who first proposed buying Twitter for $44 billion earlier this spring, before quickly backing away from his pledge amid accusations that Twitter executives were hiding the amount of their accounts. fake account on its platform, was given until October 28 to close the case by Court Judge Chancery Delaware. Kathaleen McCormick last weekend.
Judge McCormick said if that fails, a trial is likely to take place in November, during which Twitter will try to force Musk to complete their merger agreement.
Questions remain, however, about the nature of the funding needed to hit the $44 billion price tag, with banks hooking up about $12.5 billion in loans and Musk himself raising about $15.4 billion from the sale of Tesla stock.
Twitter shares were marked 1.5% higher in trading before the market showed an opening bell price of $49.92 per share.
