Stock market today: Dow, Nasdaq edge lower to start jobs report week as Powell set to speak – Yahoo Finance

September 30, 2024

U.S. stocks were volatile on Monday, but still expected to see solid monthly and quarterly gains as investors awaited a speech from Federal Reserve Chairman Jerome Powell ahead of the important monthly jobs report. Ta.

The S&P 500 (^GSPC) fell 0.1%, and the Nasdaq Composite Index (^IXIC) also rebounded from the day's lows and fell about 0.1%. Meanwhile, the Dow Jones Industrial Average (^DJI) fell about 0.4%.

Wall Street indexes were still looking for monthly gains heading into the final trading day of September, typically the cruelest month for stocks. Significant interest rate cuts from the Federal Reserve and signs of US economic resilience boosted confidence, with stocks posting their third straight weekly win.

Investors are now preparing for the September jobs report to be released on Friday, expected to be a key test for the recent rally in stocks. As markets consider whether the Fed acted aggressively to protect a healthy economy or support a struggling economy, the pressing question is how quickly the labor market is slowing. The question is whether progress is being made. Fed Chairman Jerome Powell's comments on the economic outlook Monday afternoon could settle this debate.

read more: Impact of Fed Rate Cuts on Bank Accounts, CDs, Loans, and Credit Cards

A growing pile of profit warnings from automakers clouded the mood early Monday. Shares of Stellantis (STLA, STLAM.MI) fell 13% after Chrysler's parent company lowered its profit margin outlook, citing supply chain disruptions and a slowdown in China. General Motors (GM) and Ford (F) both fell about 4%. Aston Martin (AML.L, ARGGY) shares fell more than 20% after the luxury automaker also warned about its earnings.

Overseas, China's benchmark stock index (000300.SS) has entered a bull market, recording its biggest rise since 2008 as buyers rushed in ahead of the week-long holiday. In Japan, however, the Nikkei Stock Average (^N225) fell due to an unexpected vote by investors who had bet on an accommodative prime minister.

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Monday, September 30, 2024 8:45 a.m. MST

NVIDIA stock falls due to concerns about sales in China

Nvidia (NVDA) shares were down about 1% in early trading after dropping as much as 2.8% in the premarket session. The decline follows a report in Bloomberg Friday that the Chinese government is encouraging Chinese companies to buy from domestic chipmakers instead of Nvidia's popular GPUs.

Ever since the United States tightened restrictions on semiconductor exports to China from the end of 2022, NVIDIA has been designing chips specifically for China. NVIDIA is currently exporting a version of its Hopper chip called H20 to China that complies with stricter trade rules. Nvidia is reportedly working on bringing a version of its latest Blackwell chips online for China as well.

Analysts remain bullish on Nvidia despite trade tensions and historic volatility in the semiconductor sector. Roughly 90% of Wall Street analysts recommend the stock as a buy, and expect the stock to rise to $147.61 next year, according to the Bloomberg consensus forecast.
Monday, September 30, 2024 at 8:00 AM MST

Investors look for signs of growth in major economic indicators week

A slew of labor market data will grab investors' attention this week, starting with the September jobs report. Updates on service sector and manufacturing activity will also be closely watched as market participants try to gauge how fast the U.S. economy is slowing.

Wall Street strategists say there is a clear reading on what kind of data supports further gains in stocks.

city Stuart Kaiser, head of U.S. equity trading strategy, told Yahoo Finance that a scenario where the Fed doesn't cut interest rates because the economy requires it is “very bullish” for stocks. Therefore, stronger-than-expected employment data is likely to be seen as positive for stock prices.

The September jobs report is expected to increase non-farm payrolls by 130,000 people and keep the unemployment rate steady at 4.2%, according to Bloomberg data. In August, the US economy added 142,000 jobs and the unemployment rate fell to 4.2%.

“It's all about the growth side of the economy, it's all about the consumer,” Kaiser said. “I think all the data that suggests that consumer spending is holding up and that we're not seeing the kind of weakness that people are worried about and the Fed is worried about will be positive for the stock market.”

Then, if Friday's jobs report is bad, it could have the opposite effect on stock prices.

“If it turns out that they started cutting rates because they were legitimately concerned about a weak labor market, then the rate cuts alone won't be enough to support stock prices, and stock prices will fall,” Kaiser said. . “Then, the reason is [the Fed is cutting] It's important here. And payroll can help answer that question. ”
Monday, September 30, 2024 7:15 a.m. MST

Automakers fall as Stellantis lowers 2024 profit forecast

Stellantis (STLA) shares fell nearly 13% after the company lowered its 2024 earnings forecast.

Instead of being cash flow positive this year, Stellantis now projects negative cash flow in the range of $5.58 billion to $11.17 billion. The company also said it expects adjusted operating margins to be between 5.5% and 7% this year, which is lower than the double-digit margins Stellantis had originally expected.

“The deteriorating global industry backdrop reflects lower market forecasts for 2024 than at the beginning of the period, while competitive dynamics are intensifying due to both increased industry supply and increased competition from China. '' Stellantis said. said in a release.

Ford (F) and GM (GM) also fell on this news.
Monday, September 30, 2024 6:35 a.m. MST

Stock prices fall as stocks move closer, and all eyes are on Mr. Powell

U.S. stocks fell on Monday, but are still expected to make big gains on a monthly and quarterly basis as investors awaited a speech from Federal Reserve Chairman Jerome Powell ahead of the important monthly jobs report. .

The S&P 500 (^GSPC), Nasdaq Composite Index (^IXIC), and Dow Jones Industrial Average (^DJI) all fell by about 0.2%.

There is little catalyst for the start of the week, with Powell's speech on Monday afternoon expected to be key.
Monday, September 30, 2024 5:50 a.m. (MST)

DirecTV to acquire Dish Network

Another media acquisition was confirmed.

Yahoo Finance's Alexandra Canal reports:

Satellite TV provider DirecTV (T, TPG) said on monday It plans to acquire rival Dish Network (SATS), which includes Dish's streaming brand Sling TV, through a debt-swap deal. Financial terms were not disclosed.

The partnership, which still requires regulatory approval, will create one of the largest pay-TV providers in the United States.

“The combination of DirecTV and Dish will benefit American video consumers by creating a stronger competitive edge in a video industry dominated by streaming services owned by big tech companies and programmers,” the companies said in a joint statement. It will bring.”

Shares of Echostar (SATS), which owns Dish Network, rose about 1% in premarket trading on the news. Shares rose nearly 10% on Friday as rumors of a takeover intensified.