Tag Archives: Breaking News: Markets

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Stock futures rise on Thursday after two-day market rally ends

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U.S. stock futures were higher Thursday morning after falling in the regular trading session and breaking a massive two-day rally.

Dow Jones Industrial Average futures rose by 118 points, or 0.39%. S&P 500 and Nasdaq 100 futures climbed 0.43% and 0.55%, respectively.

Stocks fought to hold onto the winning streak Wednesday but ultimately fell short. The Dow closed about 42 points lower, or 0.14%, rebounding from the session’s low of nearly 430 points. The S&P 500 and the Nasdaq Composite slid 0.20% and 0.25%, respectively.

Rising yields added pressure to stocks Wednesday. The rate on the 10-year U.S. Treasury topped 3.7%, rising from 3.6% a day earlier.

“Few are convinced that the recent move is more than a bear market rally, with skepticism over the durability,” said Mark Hackett, chief of investment research at Nationwide. “Confidence remains weak, ranging from CEOs, small businesses, consumers, and investors. Universal pessimism is bullish from a contrarian perspective, though timing of the pendulum swing is difficult to predict.”

Investors continue to monitor economic data to see if inflation is cooling off, or if the Federal Reserve’s rate hikes are pushing the U.S. closer to a recession.

Data from ADP showed that the labor market remained strong among private companies in September, when businesses added 208,000 jobs. That beat the 200,000 job estimate from Dow Jones. On Friday, the September jobs report from the Bureau of Labor Statistics will be released, giving the central bank and investors another piece of data.

Some companies are reporting earnings, as well. On Thursday, Constellation Brands will announce its results before the opening bell, and Levi Strauss will report after the market closes.

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Business

ADP jobs report September 2022:

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The U.S. labor market showed strength in September, with private companies adding more jobs than expected, payroll services firm ADP reported Wednesday.

Businesses added 208,000 for the month, better than the 200,000 Dow Jones estimate and ahead of the upwardly revised 185,000 in August.

Those gains came even as goods-producing industries reported a loss of 29,000 positions, with manufacturing down 13,000 and natural resources and mining losing 16,000.

However, a big jump in trade, transportation and utilities helped offset those losses, as the sector saw a jobs gain of 147,000.

Professional and business services added 57,000, while education and health services picked up 38,000 and leisure and hospitality grew by 31,000. There also were losers within the services sector, as information declined by 19,000 and financial activities saw a loss of 16,000 positions.

By size, companies employing 50-499 workers led with a 90,000 gain, while large firms added 60,000 and small businesses contributed 58,000.

The tight job market saw another month of sizeable pay hikes, with annual pay trending up 7.8% from a year ago, according to ADP, which compiles the report in tandem with the Stanford Digital Economy Lab. Those changing jobs saw a median change in annual pay of 15.7%, down from 16.2% in August for the biggest monthly drop in the three years ADP has been tracking the data.

ADP’s report comes two days before the closely watched nonfarm payrolls report issued by the Bureau of Labor Statistics.

The estimate for the Friday report is a growth of 275,000 jobs. Though ADP revised its methodology over the summer, the August total, which was revised up sharply from the originally reported 132,000, was still well shy of the BLS count of 315,000 added jobs.

Federal Reserve officials are watching the jobs numbers closely as the central bank looks to stem high inflation.

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Business

Dow futures fall more than 200 points following a sharp two-day rally on Wall Street

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U.S. stock futures fell on Wednesday, putting Wall Street on track to give back some of its sharp gains from the last two sessions.

Dow Jones Industrial Average futures declined by 303 points, or 1%. S&P 500 and Nasdaq 100 futures dipped 1% and 0.9%, respectively.

The Dow on Tuesday jumped about 825 points, or 2.8%. The S&P 500 gained nearly 3.1%, while the Nasdaq Composite advanced 3.3%. Those gains, which come on the back of falling bond yields, led to the strongest two-day stretch for the S&P 500 since 2020.

Meanwhile, a weakening in the most recent job openings data had some investors considering whether the Federal Reserve will slow the pace of interest rate hikes.

Market participants wondered whether those signs could mean markets have finally priced in a bottom after the sharp declines in the prior quarter.

“I don’t think you have to worry about a recession until the second half of ’23,” Stifel chief equity strategist Barry Bannister said Tuesday on CNBC’s “Closing Bell: Overtime.” “So there is room for a rally as you go into the early part of next year.”

Traders are expecting a raft of economic reports on Wednesday.

Data on weekly mortgage applications is expected. September’s ADP private payrolls report is due out at 8:15 a.m. ET. The latest international trade reading is due at 8:30 a.m. ET, while the ISM services index is set to be released at 10 a.m. ET.

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Asia markets trade higher after U.S. stocks rally for a second day

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People cross a street in Causeway Bay, Hong Kong.

Marc Fernandes | Nurphoto | Getty Images

Shares in the Asia-Pacific traded higher on Wednesday after U.S. stocks rallied for a second day.

Hong Kong’s Hang Seng index surged 5.1% on its return to trade after a holiday Tuesday. The Hang Seng Tech index soared 7.11% higher.

The Nikkei 225 in Japan rose 0.35%, rising above the 27,000 level, while the Topix added 0.3%.

In South Korea, the Kospi was flat and the Kosdaq gave up early gains to fall 1.47%. Australia’s S&P/ASX 200 was up 1.6%. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 2.26%.

On the economic front, inflation in South Korea slowed slightly in September, according to official data released Wednesday.

Mainland China markets remain closed for the Golden Week holiday, and India’s market is also closed for a holiday.

On Wall Street overnight, stocks soared overnight in the U.S. for a second session. The Dow Jones Industrial Average jumped 825.43 points, or 2.8%, to 30,316.32. The S&P 500 advanced nearly 3.1% to close at 3,790.93, and the Nasdaq Composite was 3.3% higher to end at 11,176.41.

“There is no denying incoming U.S. economic data is having a hand in equity, bond and currency moves so far this week,” wrote Ray Attrill, head of FX strategy at National Australia Bank.

The U.S. Job Openings and Labor Turnover report sprang a “big downside surprise” that couldn’t be ignored, he wrote. It’s the “first meaningful sign of some cracks” in the labor market, though it is still very tight, he added.

— CNBC’s Tanaya Macheel and Alex Harring contributed to this report.

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Treasury yields tumble for a second day, with 10-year rate below 3.6%

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Treasury yields fell across the board for a second day Tuesday as traders weigh actions from central banks going forward.

The benchmark 10-year Treasury was down 6 basis points to 3.587%, after having surpassed the 4% mark last week. The yield on the policy-sensitive 2-year Treasury fell 5 basis points to 4.045%.

Yields and prices move in opposite directions and one basis point equals 0.01%.

The moves appeared to be helping the stock market, as futures traded sharply higher Tuesday. Stocks also rallied Monday.

Markets also continued to absorb the unexpected decline of the U.S. Purchasing Managers’ Index data for the manufacturing sector, which measures factory activity.

That comes as the Federal Reserve maintains a hawkish tone about interest rates hikes, with speakers from the central bank emphasizing that lowering persistent inflation is a top priority for them.

Various Fed speakers are due to make remarks on Tuesday, which traders will pay close attention to in light of growing fears of a recession brought on by rate hikes being implemented too quickly.

Tuesday will also bring insights into the labor market as job openings data for August is released.  

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Business

Stock futures rise following relief rally to begin October

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Stock futures rose following a broad rally on the first trading day of October – a sharp turn from September, which brought the worst month since March 2020 for the the Dow Jones Industrial Average and the S&P 500.

Futures tied to the S&P 500 increased 0.54%. Nasdaq 100 futures were up 0.75%. Futures for the Dow Jones Industrial Average were up 128 points, or 0.43%.

Monday brought a respite from slides seen throughout September and the prior quarter. The Dow jumped nearly 2.7%, or about 765 points, to close at 29,490.89. This was its best day since June 24. The S&P 500 advanced about 2.6% to 3,678.43 in its best day since July 27. The Nasdaq Composite increased roughly 2.3% to end at 10,815.43.

Meanwhile, the yield on the 10-year U.S. Treasury note fell to about 3.65%, down from more than 4% at one point last week.

“There was a relief rally,” said Jon Maier, chief investment officer at Global X ETFs. But he also warned against calling on a trend based on one day of trading. “I don’t think one day of relief changes the story.”

Maier said the rally likely came from optimism in the U.S. over the state of foreign markets, as the dollar continued to surge. But within the U.S., he said broader market trends will likely be tied to future decisions from the Federal Reserve as it aims to continue lowering inflation.

Investors will watch for new data Tuesday from the Job Openings and Labor Turnover Survey administered by the Bureau of Labor Statistics.

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Business

Asia-Pacific markets fall; oil up 2% on possible OPEC+ supply cut

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CNBC Pro: Investment pro says ETFs are a $10 trillion opportunity — and reveals areas of ‘tremendous’ value

Exchange-traded funds offer the benefit of diversification, says Jon Maier, chief investment officer at Global X ETFs. He said the ETF market is “growing exponentially” and estimates it to be worth $10 trillion.

He names several opportunities for ETF investors in this volatile market.

Pro subscribers can read more here.

— Zavier Ong

Business confidence of Japan’s large manufacturers worsens

Sentiment of Japan’s large manufacturers worsened in the July-to-September quarter, according to the Bank of Japan’s latest quarterly tankan business sentiment survey.

The headline index for large manufacturers’ sentiment came in at 8, a decline from the previous quarter’s reading of 9. Economists polled by Reuters expected a print of 11.

“Our expectation and market expectations were for the manufacturing reading to pick up — supply conditions had improved, you’ve seen fading supply impact from zero-Covid policies in China, commodity prices came down a little bit,” said Stefan Angrick, a senior economist at Moody’s Analytics.

“The fact that the manufacturing side of the economy isn’t doing so well certainly isn’t great for the outlook,” he told CNBC’s “Squawk Box Asia.”

But the non-manufacturing index ticked up slightly, which could mean Japan’s late Covid recovery is getting underway, he added.

— Abigail Ng

CNBC Pro: The five global stocks experiencing the de-globalisation trend, according to HSBC

New research from HSBC says supply chains, geopolitical tensions, and worsening financial conditions have forced many global companies to “substantially” turn inward in search of resilient revenue and growth.

In a tough economic environment with recessionary pressures, the bank said turning inwards is “probably helpful” for these stocks.

The report titled ‘A de-globalisation wave?’ said European firms’ foreign sales dipped below 50% in 2021, the lowest level in the last five years.

Oil prices jump on reports of OPEC+ mulling production cut

CNBC Pro: Should investors flee stocks? Strategists give their take — and reveal how to trade the volatility

With monetary policy set to tighten further in the months ahead, and Wall Street mired in the depths of a bear market abyss, many investors are beginning to wonder if now’s the time to exit the stock market and put their money in other asset classes.

CNBC Pro spoke to market watchers and scoured through research from investment banks to find out what the pros think.

Pro subscribers can read more here.

— Zavier Ong

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Business

Stock futures turn slightly positive after Dow, S&P 500 cap worst month since March 2020

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Traders on the floor of the NYSE, Sept 7, 2022.

Source: NYSE

Stock futures rose slightly in overnight trading Sunday after Wall Street wrapped up another negative quarter and both the S&P 500 and Dow Jones Industrial Average finished their worst month since March 2020.

Futures tied to the Dow Jones Industrial Average gained 100 points, or 0.35%, while S&P 500 added 0.22%. Nasdaq 100 futures traded flat.

Friday capped off a negative month and quarter for all the major averages, with the Dow falling 500.10 points, or 1.71%, to close below 29,000 for the first time since November 2020.

For the quarter, the Dow fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015. Both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

The Dow shed 8.8% in September, while the S&P 500 and Nasdaq Composite lost 9.3% and 10.5%, respectively. All the major averages also recorded their sixth negative week in seven.

Heading into the new quarter, all S&P 500 sectors sit at least 10% off their 52-week highs. Nine sectors finished the quarter in negative territory. Consumer discretionary was the best performer, gaining more than 4.1%.

In the fourth quarter, elevated inflation and a Federal Reserve intent on bringing surging prices to a halt regardless of what it means for the economy will likely continue to weigh on markets, said Truist’s Keith Lerner. Oversold conditions, however, also make the market vulnerable to a sharp short-term bounce on good news, he added.

“I think we could be set up for some type of reprieve but the underlying trend at this point is still a downward trend and choppy waters to continue,” Lerner said.

On the economic front, Markit PMI and ISM manufacturing data are slated for release on Monday along with construction spending.

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Tesla (TSLA) Q3 2022 vehicle delivery and production numbers

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A Tesla Model Y on display inside a Tesla store at the Westfield Culver City shopping mall in Culver City, California, U.S., on Thursday, April 14, 2022.

Bing Guan | Bloomberg | Getty Images

Electric vehicle makers Tesla just posted third-quarter vehicle production and delivery numbers for 2022. Here are the numbers:

  • Total deliveries Q3 2022: 343,000
  • Total production Q3 2022: 365,000

Deliveries are the closest approximation of sales reported by Tesla, and they fell short of analysts’ expectations 364,660 vehicles, according to estimates compiled by FactSet-owned Street Account.

Tesla also said in its report the company produced 19,935 of its higher priced Model S and X vehicles, and 345,988 of its more popular Model 3 and Y vehicles during Q3.

Total production increased from the prior quarter of 2022, when Tesla said it made 258,580 vehicles.

During the year-ago quarter, Tesla reported deliveries of 254,695 vehicles, and that it had produced 237,823 cars including just 8,941 Model S and X vehicles, which are the company’s more expensive sedan and SUV with falcon-wing doors, respectively.

In the third quarter of 2022, Tesla faced soaring commodity prices, executive turnover (with the notable departure of AI leader Andrej Karpathy in July) and growing pains at its new factories in Germany and Texas.

Tesla has not historically disclosed its vehicle production and delivery numbers by region.

In July this year, Tesla had to suspend most of its Shanghai factory production temporarily to make upgrades to the plant. By the month of August, however, the company’s production and deliveries in China had rebounded, according to China Passenger Car Association data.

In the U.S., at the end of the second quarter, Tesla laid off an entire AI office and made other headcount cuts. Musk also mandated that all Tesla employees should work at a Tesla office at least 40 hours per week, even if they were previously allowed to work remotely.

After that, some employees were dismissed and others chose to resign, while those who returned to the office found over-crowded conditions that persisted through the third-quarter, making it hard to get work done normally at some of the companies facilities, including its first U.S. car factory in Fremont, California, and battery plant outside of Reno, Nevada.

By September, executives speaking at an all-hands meeting with employees at the Nevada Gigafactory were celebrating new production records, and lauding employees’ hard work.

As CNBC previously reported, Tesla execs said at that time August had been a record month for the Fremont factory in terms of production, and that Tesla’s relatively new factory in Austin, Texas, had hit a 1,000 cars per-week production rate on a seven day rolling basis, a promising milestone.

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Asia stocks fall after Wall Street slump; China PMI beats estimates

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Japan movers: Softbank, Nintendo, Toyota fall

Apple suppliers in Asia fall after analyst downgrade

China reports better-than-expected factory activity for September

China’s official manufacturing Purchasing Managers’ Index surprisingly grew in September to 50.1, much higher than the 49.6 predicted by analysts in a Reuters poll.

The 50-point mark separates growth from contraction. PMI prints compare activity from month to month.

Meanwhile, the Caixin/S&P Global manufacturing Purchasing Managers’ Index, a private survey of factory activity — reported a contraction with a reading of 48.1.

“Subdued demand conditions and lower production requirements led firms to cut back on their purchasing activity in September, with the rate of decline the quickest in four months,” the Caixin press release said.

The official non-manufacturing PMI came in at 50.6 in September, down from 52.6 in August.

— Abigail Ng

Factory activity in China expected to contract again

China’s official manufacturing Purchasing Managers’ Index for September is expected to come in below the 50-point mark separating growth from contraction, according to a Reuters poll of analysts.

Economists expect a figure of 49.6, slightly higher than August’s 49.4, which would mark the third consecutive month of contraction.

PMI readings are sequential and represent month-on-month expansion or contraction.

A private survey of Chinese factory activity is also due on Friday, and analysts polled by Reuters predict that the print will come in at 49.5.

— Abigail Ng

Japan’s industrial production rises more than expected

CNBC Pro: Is the Fed on the right track? Wall Street veteran Ed Yardeni says this is what it should do next

The U.S Federal Reserve announced yet another 75 basis point hike earlier this month, sending the federal funds rate up to a range of 3% to 3.25%. The central bank also signaled it may raise interest rates up to as high as 4.6% in 2023 to control inflation.

Ed Yardeni, the economist who coined the term “bond vigilantes,” gives his take as the Fed’s response to inflation comes under intense scrutiny.

Pro subscribers can read more here.

— Zavier Ong

Fed’s Loretta Mester says interest rates are not yet restrictive

Cleveland Federal Reserve President Loretta Mester said interest rates are not yet restrictive, and there’s more to be done to bring down inflation.

“Inflation is still at a 40 year high,” Mester told CNBC’s Steve Liesman during an appearance on “Squawk Box.” “So right now the conversation has to be we have to do, what we must do to get back to price stability, because we can’t have a healthy economy, we can’t have good labor markets over time, unless we get back to price stability.”

Mester said she’s probably “a little bit above the median path” among Fed officials when it comes raising interest rates, citing the persistence in inflation.

“We’re still not even in restrictive territory on the funds rate, so you’re right, we’ve moved the funds rate up 300 basis points this year, but look how high inflation is,” Mester said.

— Sarah Min

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