US stocks slipped on Monday as investors overhauled their views on interest rate cuts after a blowout jobs report ahead of a week of key inflation data and the start of earnings season.
The Dow Jones Industrial Average (^DJI) fell 0.3% after notching a fresh record high as stocks soared to close the week. The S&P 500 (^GSPC) shed roughly 0.2%, while the tech-heavy Nasdaq Composite (^IXIC) led the losses with a 0.4% drop.
Traders have abandoned last week's bets on a 0.50% rate cut in November and now see an 88% chance of a 0.25% move, according to the CME FedWatch Tool. Those expectations could drag on stocks, which have rallied to records amid confidence that big rate cuts and an economic "soft landing" were on the table.
The wait is now on for the October consumer inflation report due Thursday to provide fresh insight into whether the Fed is making progress on bringing already-cooling price pressures down to its 2% target.
The start of third quarter earnings is in focus as Goldman Sachs (GS) raised its target for the S&P 500, saying it expects higher margin growth for corporate companies. After Pepsi (PEP) results on Thursday, the season gets underway in earnest on Friday with reports from big banks JPMorgan (JPM), Wells Fargo (WFC), and BlackRock (BLK).
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Ines Ferré
Stocks open lower as 10-year Treasury yield tops 4%
The major averages opened lower on Monday as the 10-year Treasury yield (^TNX) rose back above 4%.
The Dow Jones Industrial Average (^DJI) fell about 0.3% after notching a fresh record high on Friday. The S&P 500 (^GSPC) shed roughly 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) fell 0.5%.
The yield on the benchmark 10-year Treasury (^TNX) hit 4% for the first time since August, as hopes of another 50 basis point rate cut from the Federal Reserve faded after a stronger-than-expected September jobs report.
Oil prices extended gains on Monday following their biggest weekly increase in more than a year as markets awaited an Israeli retaliation against Iran over its missile barrage last week.
West Texas Intermediate crude futures (CL=F) advanced more than 1% to trade above $75 per barrel, after gaining more than 9% last week. Brent futures (BZ=F), the international benchmark, also advanced more than 1% to trade above $79 per barrel.
Laura Bratton
Pfizer stock jumps on reports of Starboard taking $1 billion stake
Pfizer (PFE) stock rose 2.6% premarket Monday as investors reacted to multiplemediareports that activist investor Starboard Value has taken a $1 billion stake in the pharmaceutical giant.
Starboard has approached Pfizer executives Ian Read and Frank D'Amelio about helping turn the tides at the drugmaker, various media outlets reported, citing unnamed sources. Pfizer, the manufacturer of the world's first-approved COVID-19 vaccine, has struggled to maintain its dominance post-pandemic. Read and D'Amelio expressed interest in assisting Starboard, The Wall Street Journal reported. Starboard's plans and the changes it would make at Pfizer are unclear.
The stock's moves early Monday morning will bring it into the positive for the year, but shares are far below record highs of nearly $60 in 2022.
Pfizer is set to report earnings on Oct. 29. Wall Street analysts expect the company to report revenues of $14.8 billion, up about 12% from the prior year. Only half of analysts covering the stock recommend buying it, according to Bloomberg data.
Kosovo’s government said Monday it would lift a ban on the entry of products from Serbia at one border crossing, 16 months after it halted imports to prevent what it said could be hidden shipments of weapons for Serb separatists. The reopening is in line with efforts by Western partners to promote reconciliation and cooperation between the two neighboring Balkan nations. Tensions between them flared in May 2023 when Kosovo police seized municipal buildings in Serb-majority communities in northern Kosovo where residents rejected the ethnic Albanian mayors elected in a vote boycotted by Serbs.
Focus expands this year for a national audience of students and educatorsMemphis, Tennessee, Oct. 07, 2024 (GLOBE NEWSWIRE) -- The National Civil Rights Museum’s Freedom Award Student Forum is a celebration for and by young trailblazers. Presented by FedEx, this year’s hybrid event is open to school groups nationally as an opportunity for students to be inspired by the purpose-driven lives of Freedom Award honorees. The Student Forum is held October 17, 2024, at the FedEx Forum, 10:30 a.m. Centr
Palestinian militants in Gaza fired a barrage of rockets into Israel on Monday as mourners marked the anniversary of the Oct. 7 attack, without disrupting a nearby ceremony.
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Verified Market Research® is thrilled to announce the release of its comprehensive and authoritative report on the Supercapacitors/Ultracapacitors Market, providing unparalleled insights into one of the fastest-growing segments in energy storage solutions. This comprehensive market report, tailored for industry leaders, engineers, and business strategists, delivers a detailed forecast of the supercapacitors/ultracapacitors market, along with growth trends, competitive landscapes, and key opportu
AUSTIN, Texas, October 07, 2024--EMBEDDED WORLD NORTH AMERICA—Taoglas®, a trusted provider of antennas and IoT components, today unveils AntJack, a high-efficiency Wi-Fi antenna that is mounted on a standard RJ45 ethernet connector. The new FXM100* Wi-Fi antenna can be mounted on Taoglas’ TMJG4926HENL or any standard 1x1 RJ45 connector to create a 2-in-1 solution, providing designers space-saving options and layout flexibility to improve wireless coverage across 2.4 GHz, 5.8 GHz, and 7.1 GHz ban
KNOXVILLE, Tenn., October 07, 2024--Pilot is mobilizing its extensive network of travel centers to support communities affected by Hurricane Helene through an in-store round-up campaign* for the American Red Cross. In addition to the round-up, Pilot is donating $300,000 to hurricane relief efforts, including $100,000 to Red Cross Hurricane Helene relief and $200,000 across various local non-profit organizations in highly impacted areas.
MANCHESTER, England (AP) — Manchester City and the Premier League were both claiming victory on Monday after the conclusion of the first of two high-profile clashes between the pair.
OKLAHOMA CITY (AP) — Oklahoma has set execution dates nine times for death row inmate Richard Glossip. The state has fed him three “last meals.” Glossip has even been married twice while awaiting execution.
Florida Gov. Ron DeSantis held a press conference on Monday morning to give an update on the state's preparedness for Hurricane Milton, which has strengthened to a Category 4. DeSantis said it is expected to make landfall in Florida on Wednesday night or Thursday morning.
Dublin, Oct. 07, 2024 (GLOBE NEWSWIRE) -- The "Sexually-Transmitted Disease (STD) Testing Market 2024: US, Europe, Japan - Supplier Shares and Sales Segment Forecasts by Country - Chancroid, Chlamydia, Gonorrhea, Herpes, HPV, Syphilis" report has been added to ResearchAndMarkets.com's offering.This report provides analysis of the global sexually-transmitted disease testing market, including emerging tests, technologies, instrumentation, sales forecasts by country, market shares, and strategic pr