Coffee With Greta: Yields Surge


DJIA Futures: -133 (-0.4%)

SPX Futures: -15 (-0.4%)

NASDAQ Futures: -57 (-0.4%)

Good morning friends!

Futures are tumbling as the 10-year Treasury yield surges.

Let’s get right to it!

10-Year Yield Pushes Back Above 5%

The 10-year Treasury yield jumped above 5% again today. 

That yield is currently up 6 basis points at 4.98% after pushing back above 5% earlier this morning. 

The 2-year yield is flat at 5.11%. 

Yields have been hovering around the highest levels seen since 2007 as investors assess the Fed’s higher-for-longer interest rate plan. 

Many analysts believe the surge in yields has eliminated the need for the Fed to hike again before year-end. 

CME Group’s FedWatch Tool shows 98.4% of traders anticipating no rate hike at next week’s meeting.

Traders Await Big Tech Earnings

This will be an important week of earnings with most of the major mega-cap tech companies set to report results. 

Here are the highlights of this week’s scheduled companies:

  • Tuesday AM: Coca-Cola (KO), General Electric (GE), 3M (MMM), General Motors (GM), Spotify (SPOT)
  • Tuesday PM: Microsoft (MSFT), Alphabet (GOOGL), Snap (SNAP)
  • Wednesday AM: Boeing (BA)
  • Wednesday PM: Meta Platforms (META), IBM (IBM)
  • Thursday AM: United Parcel Service (UPS), Southwest Airlines (LUV)
  • Thursday PM: Amazon (AMZN), Intel (INTC), Chipotle Mexican Grill (CMG), Ford Motor (F)
  • Friday AM: Chevron (CVX), Exxon Mobil (XOM)

Chevron Agrees To Buy Hess

Chevron (CVX) shares are down 2.4% ahead of the open after announcing it agreed to buy Hess (HES) for $53 billion. 

HES shares are flat, down 0.02%. 

The takeover will be an all-stock transaction and is the second proposed oil mega-merger this month. 

The total deal value is $60 billion, including debt. 

Hess shareholders will receive 1.025 CVX shares for every HES share they own.

Textainer Surges On Private Takeover Deal

Textainer (TGH) shares are rallying 42.8% in premarket trade after announcing a private takeover deal this morning.

Investment firm Stonepeak offered the shipping container leasing company an all-cash deal at $50 per share. 

The $2.1 billion deal values Textainer at more than $7 billion, debt included. 

The transaction is expected to close in Q1 2024. 

Apple Slips Amid Supplier Investigation In China

Apple (AAPL) shares are down 0.9% ahead of the open amid reports its biggest supplier, Foxconn, is under tax investigation in China.

China’s state-run Global Times newspaper reported that Chinese authorities recently conducted inspections at Foxconn’s businesses in Guangdong and Jiangsu provinces. 

The natural-resources department reportedly conducted on-site investigations into the company’s land use in the Henan and Hubei provinces. 

Foxconn manufactures Apple products in three of those provinces. 

The probe comes after Foxconn’s founder announced in August that he would run for president in Taiwan. 

He resigned from the company’s board but still holds a 12.5% stake. 

He’s currently fourth in the polls for the January election.

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