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
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
"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
Europe's main stock indexes were down, after initially
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
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
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%.
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
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
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
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
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 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
TODAY'S TOP HEADLINES
Rivian's Quest to Build the Ultimate Truck Burns Through
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
For Tesla's Cybertruck, Another Sales Launch Date Comes and
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
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
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
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
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.
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TODAY IN CANADA
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
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
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
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
Trimble Raised to Outperform From Market Perform by Raymond
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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