Coffee With Greta: Can Wall Street Shake Off September?
DJIA Futures: +296 (+1.0%)
SPX Futures: +34 (+0.9%)
NASDAQ Futures: +71 (+0.7%)
Good morning friends!
Futures are rebounding as the market looks to start off the new quarter on a positive note.
Let’s get right to it!
Stocks Rise, Yields Fall Ahead of Big Week
Stocks are rising as Treasury yields are dropping ahead of new economic data.
The 2-year yield is down 14 basis points to 4.13% with the 10-year yield falling 12 basis points to 3.71%.
The biggest data on the schedule today is the S&P Global and ISM manufacturing PMI’s at 10:00 a.m. ET.
This week also includes key labor market data for the Fed.
That starts with the August job openings and labor turnover survey (JOLTS) on Tuesday.
ADP releases its private payroll report for September on Wednesday, with weekly jobless claims on Thursday, and the official September jobs report on Friday.
Tesla Slides Despite Record Q3 Deliveries
Tesla (TSLA) shares are down 5% ahead of the open despite reporting record deliveries in the third quarter.
The electric automaker delivered 343,000 vehicles last quarter.
That was an all-time high for quarterly deliveries but fell short of analysts’ expectations for 364,660.
Total production rose to 365,000 vehicles from 258,580 in Q2.
That included nearly 20,000 Model S and X vehicles and more than 345,000 Model 3 and Y vehicles.
Credit Suisse Drops On Concerns Over Financial Health
Credit Suisse (CS) shares are falling 4.6% in premarket trade amid concerns over the lender’s financial health.
The Financial Times reported overnight that executives spent the weekend calling major investors to reassure them the business is fine.
This comes after spreads of the bank’s credit default swaps jumped sharply on Friday.
That jump came after reports the lender is looking to raise capital.
Credit Suisse told CNBC it will provide updates on its strategy when it reports earnings October 27.
Sources say part of that strategy may be pulling out of the U.S. market entirely.
The share price has hit record lows this year and the lender has struggled amid higher borrowing costs.
Peloton Reaches Deal With Hilton
Peloton (PTON) shares are up 4.8% ahead of the open after announcing a partnership with Hilton (HLT).
As part of the deal Peloton will put its bikes in all 5,400 Hilton-owned hotels across the United States.
Hilton Honors members will also receive a free 90-day trial of the Peloton app.
The majority of locations will be equipped by the end of the year with rollout beginning in the coming weeks.
Oil Prices Jump Ahead of OPEC+ Meeting
Oil prices are higher today as the market remains on edge for this week’s OPEC+ meeting.
West Texas Intermediate crude futures are up 4.9% to over $83 bbl while Brent crude futures are up 4.2% to just under $89 bbl.
OPEC+ meets on Wednesday and is said to be considering an output cut of more than 1 million barrels per day.
The cuts would be an effort to support prices amid the declining global demand outlook.
U.K. Reverses On Tax Cuts for High Earners
The U.K. government reversed its plan to cut the top rate of income tax which caused extreme market turmoil last week.
The government had previously announced a plan to cut the top rate paid on incomes over £150,000 ($166,770) from 45% to 40%.
Following that announcement, the pound plunged to a record-low, mortgage deals were pulled from the market, and the U.K. bond market collapsed.
That caused the Bank of England to step in and buy government bonds in an effort to stabilize the market.
The Finance Minister said today, “It is clear that the abolition of the 45p tax rate has become a distraction from our overriding mission to tackle the challenges facing our economy. As a result, I’m announcing we are not proceeding with the abolition of the 45p tax rate. We get it, and we have listened.”
The British pound rose sharply after that announcement, up 0.8% against the dollar at one point, but has since settled to around $1.12.
10-year gilt yields are also down sharply, with those moves trickling into the U.S. bond market as well.
