S&P, Nasdaq edge higher to start jobs report week as Powell set to speak

US stocks wavered on Monday but were still set for strong monthly and quarterly gains as investors waited to hear Federal Reserve Chair Jerome Powell speak in the run-up to the crucial monthly jobs report.

The S&P 500 (^GSPC) was just over the flat line, while the Nasdaq Composite (^IXIC) bounced off its lows of the day to also rise about 0.15%. Meanwhile, the Dow Jones Industrial Average (^DJI) slipped about 0.2%.

The Wall Street indexes were still eyeing a monthly gain heading into the last trading day of September, typically the cruelest month for stocks. The Federal Reserve’s jumbo interest rate cut and signs of resilience in the US economy have lifted confidence, helping stocks post three weekly wins in a row.

Investors are now bracing for the September jobs report, due out on Friday, which is seen as posing an important test for the recent rally. The pressing question is just how quickly the labor market is slowing as the market weighs whether the Fed has acted aggressively to protect a healthy economy or to help a flailing one. Fed Chair Powell’s comments on the outlook for the economy on Monday afternoon could help settle that debate.

A growing pile of profit warnings from automakers clouded the mood early Monday. Stellantis (STLA, STLAM.MI) shares tumbled 13% after the Chrysler parent slashed its margin outlook, citing supply chain disruption and weakness in China. General Motors (GM) and Ford (F) were both down around 4% in tandem. Aston Martin (AML.L, ARGGY) shares plunged over 20% after the luxury automaker warned on earnings too.

Overseas, China’s benchmark stock index (000300.SS) posted its biggest gain since 2008, entering a bull market, as buyers rushed in ahead of a weeklong holiday. But in Japan, the Nikkei 225 (^N225) tumbled as a surprise vote wrong-footed investors betting on an easing-friendly prime minister.

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Mon, September 30, 2024 at 6:35 PM GMT+2

Real estate leads S&P 500 higher

The Real Estate (XLRE) sector rose more than 0.5% to lead the S&P 500 on Monday in a day with relatively subdued market action. The benchmark index itself was up just 0.06% around 12:30 p.m. ET.

Meanwhile, the Materials (XLB) sector was the biggest laggard falling 0.8%.

Source: Yahoo Finance
Mon, September 30, 2024 at 5:45 PM GMT+2

Nvidia stock slips on China sales fears

Nvidia (NVDA) stock slipped around 1% in early trading after falling as much as 2.8% before market open. The drop follows a report from Bloomberg Friday that Beijing is urging Chinese companies to buy from chipmakers within its own borders — rather than Nvidia’s popular GPUs.

Nvidia has designed special chips for China since the US ramped up export controls on semiconductors to the country beginning in late 2022. Nvidia currently exports a version of its Hopper chip called H20, which complies with tougher trade rules, to China. Nvidia is reportedly working to bring online a version of its latest Blackwell chips for China as well.

Analysts remain bullish on Nvidia despite trade tensions and historic volatility in the semiconductor sector. About 90% of Wall Street analysts recommend buying the stock and see shares rising to $147.61 over the next year, according to Bloomberg consensus estimates.
Mon, September 30, 2024 at 5:00 PM GMT+2

Investors look for signs of growth in key economic data week

A slew of labor market data headlined by the September jobs report will be in focus for investors this week. Updates on activity in the services and manufacturing sectors will also catch attention as market participants attempt to discern how quickly the US economy is slowing.

Wall Street strategists argue there’s a clear read through on what type of data would be supportive of a further rally in stocks.

Citi head of US equity trading strategy Stuart Kaiser told Yahoo Finance a scenario where the Fed isn’t cutting because the economy needs it is “hugely bullish” for equities. Therefore a stronger than expected jobs report would likely be seen as a positive for stocks.

The September jobs report is expected to show 130,000 nonfarm payroll jobs were added to the US economy, with unemployment holding steady at 4.2%, according to data from Bloomberg. In August, the US economy added 142,000 jobs while the unemployment rate fell to 4.2%.

“Everything is about the growth side of the economy and everything is about the consumer,” Kaiser said. “Any data that suggests consumer spending is holding in and you’re not seeing the weakness that people are worried about and that the Fed is worried about, I think that’s all going to be positive for equity markets.”

Subsequently, a bad jobs report on Friday could have the opposite impact on stocks.

“If it turns out that they started cutting because they’re legitimately concerned about weakness in the labor market, rate cuts aren’t going to be enough to help equities in that case and you’re going to trade lower,” Kaiser said. “So the why [the Fed is cutting] matters here. And payrolls is going to help answer that.”
Mon, September 30, 2024 at 4:15 PM GMT+2

Automakers slide as Stellantis cuts 2024 profit outlook

Stellantis (STLA) stock sank nearly 13% as the automaker cut its 2024 profit forecast.

Instead of positive cash flow for the year, Stellantis now expects negative cash flow in a range of $5.58 billion to $11.17 billion. The automaker said it also expects its adjusted operating profit margin to come in between 5.5% and 7% this year, lower than the double-digit margins Stellantis initially forecast.

“Deterioration in the global industry backdrop reflects a lower 2024 market forecast than at the beginning of the period, while competitive dynamics have intensified due to both rising industry supply, as well as increased Chinese competition,” Stellantis said in a release.

Ford (F) and GM (GM) also traded lower after the news.
Mon, September 30, 2024 at 3:35 PM GMT+2

Stocks slide at the open, all eyes on Powell

US stocks moved lower on Monday but were still set for strong monthly and quarterly gains as investors waited to hear Federal Reserve Chair Jerome Powell speak in the run-up to the crucial monthly jobs report.

The S&P 500 (^GSPC), the Nasdaq Composite (^IXIC), and the Dow Jones Industrial Average (^DJI) all fell about 0.2%.

With few catalysts to kick off the week, Powell’s speech on Monday afternoon is expected to be key.
Mon, September 30, 2024 at 2:50 PM GMT+2

DirecTV to buy Dish Network

Another media acquisition has been confirmed.

Yahoo Finance’s Alexandra Canal reports:

Satellite TV provider DirecTV (T, TPG) said Monday it will buy rival Dish Network (SATS), including Dish’s streaming brand Sling TV, through a debt exchange transaction. Financial terms were not disclosed.

The deal, which is still subject to regulatory approval, is set to create one of the US’s largest pay-TV providers.

“The combination of DirecTV and Dish will benefit US video consumers by creating a more robust competitive force in a video industry dominated by streaming services owned by large tech companies and programmers,” the companies said in a joint statement.

Shares in EchoStar (SATS), which owns Dish Network, moved about 1% higher in premarket trading following the news. The stock had surged nearly 10% on Friday after the acquisition rumors intensified.