US index futures are declining on Monday morning due to an unprecedented Hamas attack on Israel, raising global concerns. The value of oil increased, intensifying instability in markets already vulnerable due to inflation and high interest rates.

At 7:06 am, Dow Jones futures (DOWI:DJI) fell 165 points, or 0.49%. S&P 500 futures were down 0.60% and Nasdaq-100 futures were down 0.77%. Although it is the Columbus Day holiday, Wall Street operates normally, but the Treasury market is closed, easing concerns about interest rates.

Last Saturday, Israel suffered a surprise attack by Hamas, resulting in the deaths of civilians, including the elderly and children. Israeli Prime Minister Benjamin Netanyahu stated that although they were caught by surprise, Hamas will face serious consequences.

This conflict caused the value of oil to soar, increasing almost 5% over the weekend. The concern is that Iran, a major oil producer and controller of the Strait of Hormuz, may have supported Hamas in the attack. However, Iran denied involvement despite applauding Hamas’ action. At press time, West Texas Intermediate crude oil for November was up 3.84% at $85.97 per barrel. Brent crude oil for December rose 3.67% to close to US$87.69 per barrel.

Iron ore with a concentration of 62%, traded on the Dalian exchange, rose 2.76%, quoted at US$113.56 per ton.

In Germany, industrial production fell by 0.2% in August, although industrial orders grew by 3.9%, indicating that the German economy is still strong, despite inflationary challenges.

In Asia, stocks had mixed movements with the reopening of the Chinese market, reflecting global caution due to tensions between Israel and Hamas.

In China, the focus has turned to the real estate sector, with rumors that Country Garden may restructure its debt abroad. At the same time, there are concerns about Evergrande, as progress on the restructuring plan is slow, as reported by Reuters.

On Monday’s United States economic agenda, investors await, at 09 am, a speech by Lorie Logan, president of the Dallas Fed. At 09:15 am, Michael Barr, vice president of supervision at the Fed, is expected to speak. Finally, at 1:30 pm, Philip Jefferson, who recently took over as vice president of the Fed, has a speech scheduled.

There is anticipation regarding statements from members of the US financial body, as they could signal the Fed’s future moves, especially given the recent Payroll data.

At Friday’s close, the Dow Jones advanced 288.01 points or 0.87% to 33,407.58 points. The S&P 500 jumped 50.31 points or 1.18% to 4,308.50. The Nasdaq Composite rose 211.51 points or 1.60% to 13,431.34 points. The S&P 500 made up for the losses that occurred throughout the week. The Nasdaq 100 was driven by technology giants like Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA).

However, the main reason behind Friday’s rally appears to be technical in nature. Long-term government bond yields stabilized after reaching their highest levels since 2007 earlier in the week, closing around 5.0%. Previously, there was a surge in hiring in the previous month, as indicated by nonfarm jobs data, which showed the addition of 336,000 jobs in September, nearly double what was expected. This data has left markets uncertain about the direction of interest rates, resulting in a series of losses in global bond markets over the past five weeks.

Ahead of Monday’s corporate earnings, investors will be watching the report from Applied Blockchain (NASDAQ:APLD).

Wall Street Corporate Highlights for Today

Amazon  (NASDAQ:AMZN) – Amazon’s first satellite prototypes for its Kuiper internet network have been successfully launched from Florida. Amazon plans to deploy thousands of satellites to compete with SpaceX’s Starlink. The mission will test Amazon’s technology in space before launching more satellites.

Microsoft  (NASDAQ:MSFT),  Activision Blizzard  (NASDAQ:ATVI) – Microsoft plans to complete its $69 billion deal with Activision Blizzard on October 13, subject to British antitrust approval, following a deadline extension to October 18. The Competition and Markets Authority has granted preliminary approval, provided Activision sells its streaming rights to Ubisoft (EU:UBI). This deal would be the largest in the gaming industry, uniting Microsoft with Activision titles such as “Call of Duty” and “World of Warcraft”.

Walt Disney  (NYSE:DIS) – Trian Fund Management, led by Nelson Peltz, has increased its stake in Disney and plans to request board seats, including for Peltz. Trian views Disney’s stock value as undervalued and seeks more focused advice. In other news, Disney is in talks with Indian businessmen including Gautam Adani and Kalanithi Maran, as well as private equity firms, to sell parts of its streaming and television businesses in India. Discussions are in the early stages, and no potential value has been mentioned.

Snap Inc   (NYSE:SNAP) – UK data watchdog the Information Commissioner’s Office (ICO) suggested that Snapchat failed to adequately assess the privacy risks posed by its artificial intelligence chatbot, “My AI”. If Snapchat doesn’t address these concerns, the chatbot could be banned in the UK. Snap is reviewing the notice and is committed to user privacy.

Walmart  (NYSE:WMT) – Walmart’s Mexican unit will face an antitrust panel over alleged monopolistic practices related to the supply and distribution of consumer goods, following a three-year investigation by Mexico’s antitrust regulator. The company has 45 days to defend itself. Walmex claims to act in accordance with legislation and cannot predict the impact on finances and operations. If found guilty, the fine can reach 8% of your annual income in Mexico.

McDonald’s  (NYSE:MCD) – McDonald’s is bringing back “Boo Buckets” for Halloween, replacing Happy Meal boxes with collectible buckets. McDonald’s is also bringing back the McRib sandwich, after a “farewell tour” last year. The scarcity tactic adds to the appeal, and fans can find it in November at select restaurants.

Exxon Mobil  (NYSE:XOM) – Shares of Exxon Mobil and Chevron (NYSE:CVX) are higher in premarket trading on Monday due to the jump  in oil prices. Additionally, Exxon Mobil is in advanced negotiations to acquire  Pioneer Natural Resources   (NYSE:PXD) in a deal valued at US$60 billion. This would mark Exxon’s biggest deal since buying Mobil in 1998, making it a major producer in the Permian Basin. The premium offered is about 20% over Pioneer’s closing value, but negotiations could change the terms. The completion of the deal could trigger further consolidation in the shale sector. Exxon Mobil investors prefer the company to acquire existing oil and gas production rather than invest in long-term drilling projects. Exxon shares hit a record high due to returns in its energy business. In other news, Exxon’s Senior Vice President responsible for Exxon Mobil’s shale oil and gas production sector, involved in merger negotiations with Pioneer, has been arrested on charges of sexual assault at a Texas hotel and is awaiting trial on a $30,000 bail. Exxon stated that he will not continue with his professional responsibilities while the investigation is ongoing.

Gold Fields  (NYSE:GFI) – Gold Fields announced the appointment of Michael Fraser as CEO and Executive Director effective January 1. Fraser, former CEO of Chaarat Gold and former chief operating officer of South32, will succeed interim CEO Martin Preece, who will remain with the company as part of the executive management team.

Citigroup  (NYSE:C) – Citigroup agreed to sell its China consumer wealth portfolio to HSBC  (NYSE:HSBC), worth about $3.6 billion, with a focus on Asia. The deal, part of Citi’s exit strategy from the consumer sector in China, is expected to close in the first half of 2024. In other news, investor Edgar Wachenheim III of Greenhaven Associates sold shares in Bank of America (NYSE:BAC) and bought more shares of Citigroup. He believes Citigroup has growth potential despite the criticism and problems.

Goldman Sachs  (NYSE:GS) – The Indian government plans to reduce investment spending to reduce the budget deficit. Goldman Sachs predicts that the private sector can fill the gap, especially as companies look to diversify and the “Make in India” initiative offers opportunities.

JPMorgan Chase  (NYSE:JPM) – Following the Hamas invasion of Israel, JPMorgan instructed its Israeli staff to work from home for the foreseeable future. Around 200 bank employees in the country are under this directive.

Delta Air Lines  (NYSE:DAL), United Airlines  (NASDAQ:UAL), American Airlines (NASDAQ:AAL) – Several international airlines have suspended flights to Israel due to the state of war following the Hamas attack. US airlines such as Delta, United and American Airlines have canceled flights, as have European airlines Lufthansa (USOTC:DLAKY), Air France-KLM (EU:AF) and Wizz Air (LSE:WIZZ). Ben Gurion International Airport normally has around 300 departures per day. IAG SE, which controls British Airways, led the declines in European airline shares. The European Union Aviation Safety Agency has issued a Conflict Zones Information Bulletin for Israeli airspace. Several Asian companies have also canceled flights to Israel. The head of the American Airlines pilots’ union has recommended that pilots not fly to Israel until the situation is safe.

Walgreens Boots Alliance  (NASDAQ:WBA) -Employees at some U.S. Walgreens stores, including pharmacists, plan a one-to three-day walkout in response to heavy prescription and vaccination expectations.The company has promised to invest in salaries and bonuses to attract and retain talent. This action comes after a significant strike in the US healthcare sector.

Bristol-Myers Squibb  (NYSE:BMY) – Bristol-Myers Squibb announced its intention to acquire Mirati Therapeutics  (NASDAQ:MRTX) for up to $5.8 billion, aiming to diversify its oncology portfolio. The deal includes drugs targeting specific cancers, such as Krazati for lung cancer. The transaction will be financed with a combination of cash and debt, and Mirati shareholders will receive an additional contingent value right. Bristol faces challenges due to generic competition in its leading medicines and seeks to strengthen its oncology pipeline.

Amgen  (NASDAQ:AMGN), Horizon Therapeutics  (NASDAQ:HZNP) – Amgen completed its $27.8 billion acquisition of Horizon Therapeutics after receiving FTC clearance with certain conditions. The FTC raised antitrust concerns, but the deal proceeded on schedule in the fourth quarter and could boost Amgen’s profits next year, especially with products like Tepezza, expected to generate $3.9 billion in peak sales.

GSK plc  (NYSE:GSK) – GSK announced that Chongqing Zhifei Biological Products has agreed to acquire the Shingrix shingles vaccine for US$3.06 billion. Zhifei will have exclusive rights to import and distribute Shingrix in China, with plans to scale volumes due to growing demand. The partnership aims to expand vaccine availability and potential future collaborations, including GSK’s Arexvy respiratory syncytial virus vaccine.

Tesla  (NASDAQ:TSLA) – Tesla sold 74,073 electric vehicles manufactured in China in September, a 10.9% drop compared to the previous year. Sales of the Model 3 and Model Y also declined by 12.0% from the previous month. Meanwhile, Chinese rival BYD (USOTC:BYDDY) saw its passenger vehicle deliveries increase by 42.8% in September. Additionally, Tesla has signed a leasing agreement with the Shanghai Waigaoqiao Free Trade Zone Group to open a massive sales and service center in Shanghai, China, by mid-2024. The Tesla store will cover 8,000 square meters and is part of the company’s efforts to expand its presence in China and enhance customer service. Tesla is also gearing up to boost consumer sentiment with discounts and green vehicle incentives. The company is facing an investigation by the European Commission regarding subsidies for China’s battery-powered cars.

General Motors  (NYSE:GM) – Canadian union Unifor has accused General Motors of resisting crucial elements of its agreement with Ford in contract negotiations. The disagreements cover temporary GM workers, health benefits for retirees and future investments. The union faces a deadline to reach an agreement by Monday.

Rivian Automotive  (NASDAQ:RIVN) – Rivian Automotive shares fell sharply after announcing plans to raise capital, prompting Battle Road Research analyst Ben Rose to downgrade the stock to “Sell” from “Hold.” Preliminary third-quarter numbers, including a drop in cash balance, also weighed on Rose’s decision.

Boeing  (NYSE:BA) – IAG  (LSE:IAG), the parent company of British Airways, is in talks with Boeing and Airbus  (USOTC:EADSY) for a potential order for wide-body aircraft, aimed at replacing British Airways’ aging Boeing 777s, with a possible order of more than 20 aircraft. Demand for long-haul widebody jets is on the rise.

Lockheed Martin  (NYSE:LMT) – Lockheed Martin shares rose 4.9% in pre-market trading Monday after the company’s board approved a $6 billion share repurchase program and an increase in the quarterly dividend from $3 to $3.15 per share. Other defense companies, such as RTX Corp  (NYSE:RTX) and Northrop Grumman  (NYSE:NOC), also saw share increases following the conflict between Israel and Hamas.

Vodafone  (NASDAQ:VOD) – US buyout fund Apollo Global Management, in partnership with local fund JB Capital, is planning a bid for Vodafone’s Spanish unit, valued at up to 5 billion euros. Vodafone is considering strategic options for its Spanish unit due to price competition.

Birkenstock – Birkenstock has obtained enough investor commitments to price its US initial public offering (IPO) at the top of the indicative range, valuing the company at US$10 billion. The final decision on the price will be made before the shares debut in New York.