Dow Jones Rises as Wall Street Prepares to End Tough Month
BY THE NUMBERS
Dow futures rose about 100 points, or about 0.3%, on Thursday, the last day of September and in the third quarter. Futures on the S&P and Nasdaq saw similar percentage gains as the rise in bond yields paused, a day after interest rates hit tech stocks again. The Nasdaq fell Wednesday for its fourth consecutive session. However, the S&P 500 managed to break a two-day losing streak and the Dow Jones Industrial Average rebounded after Tuesday’s sell-off. All three stock indexes were down for the month. (CNBC)
For the third quarter, at Wednesday’s close, the S&P 500 was actually up more than 1.4% on pace for its sixth consecutive positive quarter, the best streak in a nine-quarter streak that ended. during the last three months of 2017.
For the Dow and Nasdaq, Thursday’s trading could determine whether they end the third quarter in positive or negative territory.
Looking ahead, October saw massive sell-offs, but it’s usually the start of better seasonal performance for stocks through to the end of the year. All three benchmarks recorded solid gains in 2021.
* Cramer says the stock market is “full of nonsense” right now. Here’s why (CNBC)
* Chamath Palihapitiya is very concerned about inflation and 3-way hedging (CNBC)
* Former bull Tesla Palihapitiya says he sold his position (CNBC)
The 10-year Treasury yield fell on Thursday but remained near highs through June at around 1.52%. Federal Reserve Chairman Jerome Powell returns to Capitol Hill, this time to testify before the House Financial Services Committee. On Tuesday, he told the Senate Banking Committee that inflationary pressures could last longer than expected. (CNBC)
* Fed Chairman Powell calls inflation “frustrating” Wednesday, sees inflation continue until next year (CNBC)
The Labor Department reported Thursday morning that initial jobless claims rose to 362,000 for the week ending September 25. Economists expected a modest drop. The Commerce Department’s third look at second-quarter gross domestic product has been revised upwards to an annual growth rate of 6.7%. It was slightly higher than the estimates. (CNBC)
Shares of Bed Bath & Beyond (BBBY) fell more than 25% in pre-market trading on Thursday as the company said it saw a sharp drop in traffic in August, dealing a blow to its second quarter tax results . The big box retailer also faces industry-wide supply chain complications, which CEO Mark Tritton says are “pervasive.” (CNBC)
Virgin Galactic (SPCE) climbed 7.5% in pre-market after the FAA concluded an investigation into a theft incident on July 11 and allowed the company to resume launches. The investigation determined that the July flight had deviated from its assigned course and that Virgin had not communicated the deviation to the FAA as required. (CNBC)
IN THE NEWS TODAY
The Senate has reached a deal to avoid a government shutdown, Majority Leader Chuck Schumer said Wednesday evening. The law would fund the government until early December and provide funds for hurricane relief and resettlement of Afghan refugees. But that will not include a suspension of the debt ceiling. Congress must pass a fundraising bill before midnight to avoid a shutdown. (CNBC)
Lawmakers will now have to separately raise the US debt ceiling by October 18 to avoid a first government default. The House on Wednesday passed a bill that virtually died when it came to the Senate because Republicans don’t want anything to do with raising the debt ceiling. (CNBC)
The $ 1,000 billion bipartisan infrastructure bill faces an uncertain future. House Speaker Nancy Pelosi told reporters on Wednesday that she wanted it passed on Thursday, but left the option of delaying the vote. The package, which was passed by the Senate last month, faces opposition from Progressive Democrats, who want to first act on their party’s massive $ 3.5 trillion reconciliation bill to bolster social safety nets. (NBC News)
Facebook’s (FB) Global Security Officer was called in to testify at Thursday’s Senate Commerce Committee hearing into the effects of Instagram on young users. Political opponents in Congress are united in their outrage at Facebook for privately compiling information that its Instagram photo-sharing service appears to seriously harm some teens, especially girls, while publicly downplaying the negative effects of the platform. -popular shape. (PA)
Facebook, in a blog post on Wednesday, said it “provided Congress with the two full sets of research that were the primary focus of the Wall Street Journal’s mis-characterization of Instagram’s internal research on teens and the well-being “. Growing public pressure on the disclosures, reported by the Wall Street Journal, prompted Facebook to suspend its work on a children’s version of Instagram.
The special House committee investigating the January 6 riot at the U.S. Capitol on Wednesday issued subpoenas to 11 people linked to former President Donald Trump and the pro-Trump group involved in organizing rallies leading up to the insurrection. The nine-member committee issued subpoenas to four of Trump’s main supporters last week. (CNBC)
Former French President Nicolas Sarkozy was found guilty of illegal campaign financing following his failed 2012 re-election bid by a Paris court on Thursday. It was the second guilty verdict this year for Sarkozy, who ruled France from 2007 to 2012 and retains his influence among conservatives despite his disgrace over his legal problems. (Reuters)
As the media began to compare Elizabeth Holmes to Steve Jobs, the former CEO of Theranos wrote herself a note containing three revealing words. “Become Steve Jobs.” This is what Holmes, on trial for fraud, wrote on April 2, 2015, according to documents obtained by CNBC.
Amazon (AMZN) has come to an agreement with two former employees who, according to the National Labor Relations Council, were unlawfully dismissed for publicly denouncing the climate record and the company’s labor policies. As part of the settlement, the company is required to pay their back wages. (CNBC)
Alphabet’s Google (GOOGL) is redesigning its dominant search engine, and users may find that future results keep them on Google properties even longer. At its second annual search event, called Search On, Google showcased its latest batch of breakthroughs in search results. The company touted its artificial intelligence and its ability to respond to more specific and complicated queries. (CNBC)
General Motors (GM) CEO Mary Barra has been named the next chair of the Business Roundtable, a trade group representing US business interests in Washington, DC. She will be the first woman to lead the BRT. She succeeds Walmart (WMT) CEO Doug McMillon, who will remain on the board when he ends his two-year term on December 31. (WSJ)
AstraZeneca’s (AZN) Covid vaccine has been shown to be 74% effective in preventing symptomatic disease, a figure that has risen to 83.5% in people 65 years of age and older, according to the long-awaited results of the the Company’s US clinical trial. The overall effectiveness of 74% was below the mid-point figure of 76% reported by the UK drugmaker in March. (Reuters)
* ‘Covid will become manageable’: BioNTech co-founder says virus will be there for years (CNBC)
STOCKS TO MONITOR
Auto retailer CarMax (KMX) missed estimates by 18 cents with quarterly profit of $ 1.72 per share, although earnings exceeded analysts’ expectations. Comparable used car sales rose 6.2%, lower than the 7.3% estimate of analysts polled by StreetAccount. CarMax fell 7.1% in pre-marketing.
Spice maker McCormick (MKC) reported adjusted quarterly earnings of 80 cents per share, beating estimates of 8 cents, with earnings slightly above Wall Street expectations. However, it also cut its profit forecast for the full year as it faces higher inflation and logistical challenges.
The fuboTV Gaming Unit (FUBO) is partnering with the Paysafe Payment Platform (PSFE) for its interactive betting operation. Paysafe grew 1.1% in pre-release while fuboTV, a sports-centric video streaming service, added 1.4%.
Merck (MRK) has reached a deal to buy drugmaker Acceleron Pharma (XLRN) for $ 180 per share in cash or $ 11.5 billion. It was reported earlier this month that Acceleron was close to a sale deal, and reports earlier this week had named Merck as a suitor.
Diageo (DEO) said its new fiscal year had started well, with the world’s largest spirits producer indicating strong North American activity and a faster-than-expected recovery in European markets. Diageo is up 2.3% in pre-market.
Tobacco producers Altria (MO) and Philip Morris International (PM) have been ordered by the International Trade Commission to suspend the import and sale of their IQOS heated tobacco machine. The order stems from a patent case brought by rival tobacco producer RJ Reynolds, with the case now awaiting administrative review.
Lordstown Motors (RIDE) is set to close a deal to sell its Ohio auto plant to Taiwan’s Foxconn Technology for an undisclosed amount, according to people familiar with the matter who spoke to Bloomberg. The electric truck maker bought the plant from General Motors (GM) less than two years ago. Lordstown was up 5.6% in pre-market.
Herman Miller (MLHR) fell a dime from Wall Street forecast with adjusted quarterly earnings of 49 cents per share, but the office furniture maker’s sales were well above estimates and also gave a forecast optimistic earnings for the current quarter. Herman Miller added 2.2% in the pre-market share.
Shares of Perrigo (PRGO) jumped 14.3% in pre-market trading after the drugmaker resolved a tax dispute with Ireland for around $ 399 million, with no interest or penalties applied.