UKX FTSE 100 Index

MARKET WRAPS

Watch For:

ISM Report on Business Manufacturing PMI for September; Fed speech from Jerome Powell, Patrick Harker, Loretta Mester

Today's Top Headlines/Must Reads:

- Rising Rates Likely Hit Bank Balance Sheets in Quarter

- China's Economy Likely to Slow in 2024 as Headwinds Persist, World Bank Says

- The Apartment Market is Hitting a Construction Lull

- Will Companies Keep Their Pandemic-Era Gains? It Depends.

Follow WSJ market coverage here

Opening Call:

Stock futures rose on Monday as traders started the new quarter in a more positive mood.

Treasury yields were holding near their highest levels since 2007 as the week began, with traders eyeing important jobs data looming on Friday.

However, stock market sentiment was perhaps underpinned by the surprise that the government did not shut down on Sunday, analysts said.

"Early indications are that U.S. markets could open the new quarter in more positive territory, as legislators were able to enforce a temporary measure to avoid shutdown over the weekend," Interactive Investor said.

"While the measure effectively kicks the can down the road in terms of the final decision, there could well be some shorter-term relief following the announcement."

Better news from China, where official data over the weekend showed the country's manufacturing sector in September expanded for the first time in six months, also helped the mood across global markets. Chinese markets were closed for the Golden Week holiday.

Europe's main stock indexes were down, after initially climbing.

Premarket Movers

AMC Entertainment rose 2.1% after a report from Variety said the makers of a film based on Beyonce's Renaissance World Tour were in advanced talks to distribute the movie directly to AMC theaters.

Apple traded up 0.8%. The company said over the weekend it plans to release an iOS 17 software update to improve overheating issues with the recently released iPhone 15.

Nvidia and other chip stocks rose ahead of the opening bell. Palantir, like Nvidia, is seen as well-placed to benefit from widespread adoption of artificial-intelligence tools, and also gained.

Tesla is expected to report third-quarter deliveries on Monday. Estimates have varied but the latest is that the electric-vehicle giant will post deliveries of 461,000, according to FactSet. Separately, Tesla also unveiled an updated version of its Model Y in China. The stock was rising 0.8%.

ADRs of Chinese EV makers NIO, XPeng, and Li Auto were trading higher after the companies reported a combined 66,831 deliveries in September, up 116% from a year earlier. NIO rose 1%, XPeng gained 1.3%, and Li Auto was up 1.8%.

Friday's Post-Close Movers

Natuzzi said it would take cost-cutting measures and improve its working capital as it forecasts weaker demand in the furnishing business. The company said it would look to optimize its supply chain and reduce selling, general and administrative expenses. Shares rose 12%.

Oragenics said it would transfer assets to Lantern Bioworks. Oragenics said it would receive $50,000 in cash, the right to acquire 1 million Lantern shares and 10% of the profits from the assets over the next decade. Shares rose 18%.

Syndax Pharmaceuticals said it would release topline results from its Phase 1/2 study Oct. 2. The company will discuss results from its trial of Revumenib to treat certain forms of leukemia. Shares rose 15%.

Forex:

The dollar was slightly lower, but the falls aren't convincing enough to look like they could mark the start of a downward trend, UniCredit Research said.

"We remain skeptical that a shift in sentiment has occurred," it said.

The dollar's falls on Friday could simply represent position adjustments on the final trading day of September.

"After all, the DXY is still at around 106 and EUR/USD remains slightly below 1.06, even though lower-than-expected preliminary eurozone CPI data for September failed to affect the common currency."

Energy:

Oil prices pushed higher as tightening fundamentals continued to provide support to key benchmarks.

ING said the oil market remained well supported after the ICE Brent November contract expired at $95.31 a barrel on Friday, "which saw the oil market finishing the third quarter up a little more than 27%--its strongest performance since the first quarter of 2022."

Investors will be looking to the OPEC+ Joint Ministerial Monitoring Committee on Wednesday, ING said.

"The market will be eager to see if there are any signs of a change in the group's output policy, given the recent strength in the market."

Metals:

Base metals prices were higher in early London trading.

ING highlighted that latest inventory data from the LME showed that aluminum on-warrant inventories fell sharply by 50,225 metric tons on Friday to 173,875 metric tons, which it said was providing support to prices.

Gold remained under pressure, amid worries of further hikes from the Fed.

"The higher-for-longer narrative we have seen with regard to Fed monetary policy has weighed on sentiment for gold," ING said, adding that gold ETF holdings have seen 18 consecutive weeks of declines.

TODAY'S TOP HEADLINES

Rivian's Quest to Build the Ultimate Truck Burns Through Billions

Rivian Automotive set out to build the ultimate electric vehicle for American consumers-a pickup truck with sports-car handling and a dizzying array of features.

Engineers gave the truck a beefy underlying metal frame for higher crash-test ratings and one of the most complicated suspension systems on the market for a smoother ride on- and off-road. It can go from zero to 60 miles an hour in 3 seconds. Rivian added pop-out flashlights stored away in the doors and a portable Bluetooth speaker.

PG&E's $6 Billion Plan to Prevent Wildfires Is in Peril

Patti Poppe has staked her legacy at California utility PG&E on a pledge to bury power lines to reduce wildfire risk. Now, her plan is in jeopardy.

Poppe, who became chief executive in 2021 following a series of deadly wildfires ignited by the company's equipment, said PG&E would bury 10,000 miles of power lines to stem the risk of them sparking wildfires.

For Tesla's Cybertruck, Another Sales Launch Date Comes and Goes

Tesla Chief Executive Elon Musk had stoked hopes this spring that the Cybertruck would finally arrive in the third quarter.

Turns out, buyers are going to have to wait a little longer.

China Comes Under Growing Pressure to Fix the Country's Housing Market

Pressure is building on Beijing to intervene more forcefully to restore confidence in its reeling property market.

In the latest sign of stress for the market, people with knowledge of Beijing's decision-making said authorities are investigating whether Hui Ka Yan, the billionaire founder of heavily indebted property developer China Evergrande Group, attempted to transfer assets offshore while the company was struggling to complete unfinished projects.

Democrats Still Publicly Back Biden for 2024. Privately, Their Fears Are Growing.

Publicly, top Democrats say they support President Biden running for re-election and think he can win. Privately, their worries are increasing but they are resigned to the idea that he isn't going anywhere, and there is no viable Plan B.

Polls have consistently shown that most voters, including the majority of Democrats, don't think Biden should run in 2024, and many have deep concerns about the 80-year-old president's age, fitness for office and leadership. Those fears have intensified as his approval ratings have declined-a recent NBC News poll showed Biden with a job approval of 41%, with 56% disapproving, compared with 46% approval, 50% disapproval in the same poll in January.

Matt Gaetz Plans Vote to Oust Kevin McCarthy After Speaker Avoids Shutdown

WASHINGTON-House Speaker Kevin McCarthy faced a direct threat to his leadership a day after crafting a deal to avoid a government shutdown, as his most prominent Republican critic said he would seek to oust him from the post.

The challenge Sunday from Florida Rep. Matt Gaetz (R., Fla.) sets up an unpredictable and fast-paced political fight in the Capitol this week between McCarthy and a band of GOP rebels who have threatened for months to topple him if he brought up legislation that required Democratic support to pass. McCarthy, having gotten Democrats to support his short-term funding bill, may need their help again to remain in his post.

Congress Stopped a Shutdown, but Fights on Ukraine, Border Intensify

WASHINGTON-Republicans and Democrats set aside sharp policy differences to avoid a government shutdown. Now, they have just weeks to resolve fights over aid to Ukraine, heading off a surge in border crossings and the overall size of the federal government.

The surprise weekend votes to fund federal operations through mid-November avoided a partial closure that would have furloughed workers and risked delaying paychecks. But Congress did nothing to resolve the country's pressing fights on spending levels, aid to Kyiv or immigration policy-it merely deferred them. Complicating matters, House Speaker Kevin McCarthy (R., Calif.) is set to face an effort this week to oust him from his leadership role, after his harshest critic, Rep. Matt Gaetz (R., Fla.), said he would pursue a motion to vacate.

Write to ina.kreutz@wsj.com

TODAY IN CANADA

Earnings:

Nothing major scheduled

Economic Calendar (ET):

0930 Sep Canada Manufacturing PMI

Stocks to Watch:

Dundee Corp. Buys 6.5 Million Reunion Gold Shares for C$0.46 a Share

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Lucara Diamond: Zara Boldt to Resign as CFO, Corporate Secretary; Boldt Plans to Step Down Effective Dec. 29; John Armstrong Has Also Tendered Resignation as VP of Technical Services

Expected Major Events for Monday

00:30/JPN: Sep Japan Manufacturing PMI

05:00/JPN: Sep Auto sales

06:00/UK: Sep Nationwide House Price Index

06:00/RUS: Sep Russian Manufacturing PMI

07:45/ITA: Sep Italy Manufacturing PMI

07:50/FRA: Sep France Manufacturing PMI

07:55/GER: Sep Germany Manufacturing PMI

08:00/ITA: Aug Unemployment

08:30/UK: Sep S&P Global / CIPS UK Manufacturing PMI

13:30/CAN: Sep Canada Manufacturing PMI

13:45/US: Sep US Manufacturing PMI

14:00/US: Sep ISM Report On Business Manufacturing PMI

14:00/US: Aug Construction Spending - Construction Put in Place

15:00/US: Sep Global Manufacturing PMI

23:01/UK: Sep Shop Price Index

23:50/JPN: Sep Monetary Base

All times in GMT. Powered by Kantar Media and Dow Jones.

Expected Earnings for Monday

BioVie Inc (BIVI) is expected to report for 4Q.

EVI Industries Inc (EVI) is expected to report for 4Q.

Fonar Corp (FONR) is expected to report for 4Q.

Tattooed Chef Inc (TTCFQ) is expected to report for 2Q.

iBio Inc (IBIO) is expected to report for 4Q.

Powered by Kantar Media and Dow Jones.

ANALYST RATINGS ACTIONS

Badger Meter Cut to Sell From Neutral by Northcoast Research

Ball Corp Raised to Buy From Hold by Jefferies

Brinker International Raised to Buy From Hold by Stifel

Bumble Raised to Buy From Hold by Loop Capital

Editas Medicine Raised to Buy From Hold by Stifel

M&T Bank Cut to Hold From Buy by Odeon Capital

Nike Raised to Hold From Sell by Williams Trading

ResMed Cut to Peer Perform From Outperform by Wolfe Research

Spire Inc Raised to Buy From Neutral by Mizuho

Sunoco Cut to Neutral From Buy by Mizuho

Texas Roadhouse Raised to Buy From Neutral by Northcoast Research

Trimble Raised to Outperform From Market Perform by Raymond James

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

October 02, 2023 06:17 ET (10:17 GMT)

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