Stocks Rally To Start October And A New Quarter Dow Up Over 800 Points
Stocks Rally To Start October And A New Quarter, Dow Up Over 800 Points https://digitalarizonanews.com/stocks-rally-to-start-october-and-a-new-quarter-dow-up-over-800-points/
Chip stocks outperforming
Semiconductor stocks are one of the group’s leading Monday’s broad rally, helping to cut into some of the sector’s big losses for the year.
The PHLX Semiconductor Sector Index was up more than 4% in afternoon trading. Among individual names, shares of Intel were up 5.4%, while Advanced Micro Devices climbed 4.8%. Chip giant Nvidia also added more than 3%.
Semiconductor stocks are often seen cyclical names, and have struggled as investors have soured on the global economic outlook. The PHLX Index is still down 39% year to date.
– Jesse Pound
S&P Global Market Intelligence: Surging dollars helps curb inflation in manufacturing
Consumers should see lower prices within manufacturing as the surging U.S. dollars helps bat down inflation, one economist said.
Manufacturers are reporting a growth in order books for the first time in four months in September while experiencing lower costs, according to Chris Williamson, chief business economist at S&P Global Market Intelligence. Input costs rose at a slower pace in September and providers raised prices at a slower rate than earlier in the year.
“While the strong dollar is curbing exports, a beneficial effect from the greenback’s strength is being seen via lower import costs,” Williamson said. “With supply chain delays also easing substantially again in September and shipping costs falling, upwards pressure on firms’ costs has moderated sharply, which will feed through to lower goods prices to consumers.”
But manufacturing will still drag on the broader economy, he said, with even more demand needed to make the industry positively contribute to gross domestic product. Despite seeing more stability in the supply chain, the industry ran through pre-production inventories for the first time since February 2021.
— Alex Harring
Wall Street is growing confident a Fed pivot could come by December, Oanda’s Moya says
It’s too early to call an end to the Federal Reserve’s aggressive tightening cycle but Wall Street is growing increasingly confident that an end could come later this year, according to Oanda’s Ed Moya.
“It is premature to say that the Fed is almost done with tightening, but it seems Wall Street is growing confident that they could be done in December,” he said in a note to clients Monday. “Investors are starting to doubt central banks globally will remain aggressive with fighting inflation as financial stability risks are growing.”
Bond yields fell on Monday after topping multi-year highs in September. Moya called the move in the Treasury markets a potential sign of rising optimism among traders.
“It is too early to call for a Fed pivot, but it seems the action in Treasury markets suggests traders are growing confident that the global growth slowdown is starting to drag down pricing pressures,” he said.
— Samantha Subin
Finding safety in the bear market: CNBC Pro’s latest stock screen
It’s been a rough 2022 for Wall Street as the S&P 500 finished its third consecutive down quarter in a row on Friday for the first time since 2009 and its worst month since March 2020.
It’s difficult for investors to stay hopeful in an environment consumed by surging inflation, a war in Ukraine and a Federal Reserve that shows few signs it will slow its tightening pace, but some safe havens do exist in this period of volatility.
CNBC Pro conducted a screen to locate some of those names, which included a popular energy stock and semiconductor company.
Subscribers to CNBC pro can check out the full list of stocks that made the cut here.
— Samantha Subin
Market has not hit contrarian low yet, two investment strategists say
The market is likely to see a near-term bounce, but a contrarian indicator that signals an upswing hasn’t been hit yet, said two investment strategists.
A bear market needs to see internal pressures cool while a handful of stocks continue going lower before a bounce usually occurs, according to Todd Sohn, a director at Strategas, and Ross Mayfield, an investment strategy analyst at Baird Private Wealth Management.
The pair also pointed to the Chicago Board Options Exchange’s CBOE Volatility Index, known as the “fear gauge,” which remains around 30. It would typically be around 40 to signal the type of panic typically seen at major lows.
“We’re just surprised that there’s a lack of major panic despite stocks being in a long bear market,” Sohn and Mayfield said. “Ultimately, I think you need to stay patient here.”
— Alex Harring
Brazil stocks rally after Bolsonaro forces run-off in presidential election
Brazilian stocks rallied Monday after President Jair Bolsonaro forced a run-off vote in this year’s election against former President Luiz Inacio Lula da Silva.
The iShares MSCI Brazil ETF (EWZ) popped more than 9%, led by a 21% pop in water and waste management company Companhia de Saneamento Basico. Oil giant Petrobras also popped more than 11%. The EWZ was on pace for its biggest one-day gain since March 24, 2020 — when it popped 12.1%.
Bovespa, Brazil’s benchmark stock index, also rose more than 4% and was headed for its best day since May 2020.
Lula, a leftist, beat out Bolsonaro by 5 percentage points in the first round of voting, which was held Sunday. However, that margin was slimmer than many expected. Bolsonaro is seen as a more market friendly candidate in Brazil, promising reform and privatizations across several sectors of the economy.
— Fred Imbert
Stocks making the biggest moves midday: Credit Suisse, Tesla and more
These are some of the stocks making the biggest moves during midday trading on Monday.
Credit Suisse — Shares of Credit Suisse rose 1.7%, reversing an earlier slump that sent the stock to a record low, after the bank over the weekend made a series of calls to calm investor fears about its financial health.
Tesla — Tesla shares dropped 8.2% after the electric vehicle maker said it delivered 343,000 vehicles in the third quarter, less than analysts expected. Wall Street analysts were divided over the report, however.
Peloton — Peloton shares rose more than 6% after the exercise-equipment company announced it will put bikes in all 5,400 Hilton-branded hotels in the U.S. as it tries to engineer a turnaround.
Read the full list of stocks moving midday here.
— Tanaya Macheel
25 S&P 500 stocks fall to fresh lows but now nearly all turn positive
Twenty-five stocks in the S&P 500 breached new 52-week lows during midday trading. They’ve since nearly all turned positive on the session.
Meanwhile, Nielsen was the only stock that hit a new 52-week high, trading at levels not seen since May 2021.
Here are some of the other names.
Carnival trading at lows not seen since Oct, 1992 (but now dipping in and out of positive territory on session)
Southwest trading at lows not seen since May, 2020 (but currently up over 1% on session)
Colgate-Palmolive trading at lows not seen since May, 2020 (but now positive on session)
DENTSPLY trading at lows not seen since Aug, 2010 (but now up over 2% on session)
Tyson Foods trading at levels not seen since Feb, 2021 (but now positive on session)
BlackRock trading at lows not seen since Sep, 2020 (but now up almost 2% on session)
Invesco trading at lows not seen since Nov, 2020 (but now up over 5% on session)
Fidelity National Information Services trading at lows not seen since Feb, 2017 (but now up more than 1.2% on session)
Nike trading at lows not seen since Apr, 2020 (but currently up over 1% on session)
Aptiv trading at lows not seen since Aug, 2020 (but currently up over 4% on session)
UPS trading at lows not seen since Mar, 2021 (but now up almost 1% on session)
— Gina Francolla, Sarah Min
Credit Suisse lowers its year-end S&P 500 target, but sees an up year for 2023
Credit Suisse is among the Wall Street firms cutting its end-of-year target on the S&P 500.
The firm lowered its target to 3,850 from 4,300. The new figure still implies upside of 7.4% through the end of the year. It also initiated its 2023 target at 4,050. These forecasts are based on updated EPS estimates of $227, $230, and $240 for 2022, 2023 and 2024, respectively.
Citi also slashed its year-end target on the stock index on Sunday.
— Tanaya Macheel
Viasat surges after announcing deal with L3 Harris
Shares of Viasat jumped 39% on Monday morning after defense contractor L3 Harris announced a deal to acquire the communications company’s tactical data links business. The deal is for just under $2 billion, the companies announced.
Viasat said it would use the cash to reduce its leverage and increase liquidity. At the end of June, the company reported having about $222 million in cash and cash equivalents versus more than $2.5 billion in senior notes and other long-term debt.
Prior to the announcement, Viasat’s stock was down 32% for the year.
Shares of L3Harris rose 3.7% on Monday.
—Jesse Pound
`This is not 2008’— Credit Suisse situation not dire, according to Citigroup
Though Credit Suisse is currently being buffeted by a falling stock price and widening credit default swap levels, Citigroup says they don’t believe the European bank is in dire trouble.
“This Is Not 2008,” Andrew Coombs said Monday in a research note. “We would be wary of drawing parallels with banks in 2008 or Deutsche Bank in 2016.”
Back in 2008, plunging share prices and widening credit default swap levels prompted a wave of consolidations in the U.S. bank sector. Stronger banks like JPMorgan Chase and Wells Fargo acquired weaker institutions.
But Credit Suisse’s common equity Tier 1 capital, a key measure tied to the bank’s ability to absorb financial shocks, was 13.5% as of the second quarter. That is “high vs peers,” Coombs wrote. The bank’s “liquidity position is very healthy,” he added.
“The market appears to b...