Stock markets today: S&P on Powell speech, Nasdaq jobs report higher to start week

US stocks were wobbly on Monday but were still set for strong monthly and quarterly gains as investors waited to hear from Federal Reserve Chair Jerome Powell in the run-up to the crucial monthly jobs report.

The S&P 500 (^GSPC) was just above the flat line, while the Nasdaq Composite (^IXIC) rose about 0.15% from its intraday lows. Meanwhile, the Dow Jones Industrial Average (^DJI) fell about 0.2%.

Wall Street indexes were still eyeing a monthly gain heading into the last trading day of September, typically the cruellest month for stocks. The Federal Reserve's jumbo interest rate cut and signs of resilience in the US economy boosted confidence, helping stocks post three consecutive weekly wins.

Investors are now gearing up for the September jobs report, due on Friday, which is seen as an important test for the recent rally. The key question is how quickly the labor market is slowing as the market weighs whether the Fed has acted aggressively to protect a healthy economy or help a weak economy. Fed Chair Powell's comments on the outlook for the economy on Monday afternoon may help settle that debate.

Read more: What Fed Rate Cuts Mean for Bank Accounts, CDs, Loans and Credit Cards

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

Overseas, China's benchmark stock index ( 000300.SS ) posted its biggest gain since 2008, entering a bull market, as shoppers flocked ahead of a week-long holiday. But in Japan, the Nikkei 225 (^N225) rallied as a surprise vote misplaced investors bet on an easy-going prime minister.

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Mon, Sep 30, 2024 at 11:00 am PDT

Chevron stock rises after FTC allows Hess deal

Chevron shares rose 0.6% Monday afternoon after news that the U.S. Federal Trade Commission cleared its $53 billion purchase of Hess Corp., but barred CEO John Hess from serving on Chevron's board.

Despite the FTC's order, Exxon Mobile's challenge to the deal still has one final hurdle, Reuters reported.

The FTC alleged that Hess openly contacted members of the Organization of the Petroleum Exporting Countries (OPEC) to stabilize the global oil market. And allowing him to serve on Chevron's board would “amplify Mr. Hess's supportive message to OPEC and others, thereby meaningfully increasing the likelihood that Chevron will align its production with OPEC's output decisions to maintain high prices,” the FTC said.

The number two US oil company deal will give Chevron access to Guyana's oil-rich offshore fields.
Mon, Sep 30, 2024 at 10:33 AM PDT

Stock trending in afternoon trading

Here are some of the top stocks on Yahoo Finance's Trending Tickers page during Monday afternoon trading:

Stellantis (STLA): Shares of the automaker fell 14% on Monday afternoon after the company issued a stark warning about its North American operations, dragging down other auto stocks.

carnival (Ccl): The cruise line fell 3% on Monday after the company beat analysts' expectations for the third quarter and raised full-year guidance. But the results were still not enough to please investors looking for strong results.

meta (meta): The social media company is still riding on the optimism sparked by its developer conference last week, where it featured AI and mixed reality updates. Shares rose nearly 1% on Monday after analyst upgrades such as Monness, Crespi, Hardt raised their price target to $620 from $570 on the strength of Meta's showcase and future services.

Boeing (B.A): The planemaker has sunk deeper into its recession as the factory workers' strike entered its third week, with no resolution in place and talks with the company deadlocked. Wall Street analysts cut their target for Boeing stock, citing costs associated with the strike. Shares fell more than 2% on Monday.
Mon, Sep 30, 2024 at 9:35 AM PDT

Real estate tops the S&P 500

The real estate ( XLRE ) sector rose more than 0.5% on Monday to lead the S&P 500 on a day of relatively muted market activity. The benchmark index itself was up about 0.06% at 12:30 pm ET.

Meanwhile, the Materials (XLB) sector was the biggest laggard with a 0.8% decline.

Source: Yahoo Finance
Mon, Sep 30, 2024 at 8:45 AM PDT

Nvidia's stock falls on China sales fears

Nvidia ( NVDA ) stock slipped nearly 1% in early trading after falling 2.8% before the market opened. The drop follows a Bloomberg report on Friday that Beijing is urging Chinese firms to buy from chipmakers within its own borders instead of Nvidia's popular GPUs.

Nvidia designed special chips for China as the US extends export controls on semiconductors until the end of 2022. Nvidia currently exports a version of its Hopper chip called the H20 to China, which adheres to strict trade rules Nvidia is reportedly working to bring a version of its latest Blackwell chips online for China as well.

Analysts remain bullish on Nvidia despite trade tensions and historical volatility in the semiconductor sector. Wall Street analysts recommend about 90% of the stock be a buy and see the shares rise to $147.61 over the next year, according to Bloomberg consensus estimates.
Monday, September 30, 2024 at 8:00 AM PDT

Investors look for signs of growth in key economic data week

A series of labor market data headlined by the September jobs report will be in focus for investors this week. Updates on activity in the services and manufacturing sectors will also draw attention as market participants try to understand how quickly the US economy is slowing.

Wall Street strategists argue that there is a clear lesson about what kind of data will support further rallies in stocks.

City Stewart Kaiser, head of US equity trading strategy, told Yahoo Finance a situation where the Fed isn't cutting because the economy needs it is “hugely bullish” for equities. So the stronger-than-expected jobs report will be seen as a positive for stocks.

According to Bloomberg data, the September jobs report will show that the US economy added 130,000 non-farm payroll jobs, with unemployment holding steady at 4.2%. In August, the US economy added 142,000 jobs while the unemployment rate fell to 4.2%.

“Everything is about the growth side of the economy and everything is about the consumer,” Kaiser said. “Any data that suggests that consumer spending is holding back and you're not seeing the weakness that people are worried about and the Fed is worried about, I think that's going to be positive for equity markets.”

Subsequently, a poor job report on Friday could have a negative impact on the stock.

“If it turns out that they're starting to cut because they're legitimately concerned about weakness in the labor market, then cutting rates won't be enough to help equities and you're going to trade lower,” Kaiser said. “Then why? [the Fed is cutting] important here. And salaries will help answer that.”
Mon, Sep 30, 2024 at 7:15 am PDT

Automakers slide as Stellantis cuts 2024 profit outlook

Stellantis ( STLA ) stock sank nearly 13% as the automaker cut its 2024 profit forecast.

Instead of positive cash flow for the year, Stellantis now expects negative cash flow of $5.58 billion to $11.17 billion. The automaker said it expects its adjusted operating profit margin to come in between 5.5% and 7% this year, lower than the double-digit margins Stellantis had initially forecast.

“The deterioration in the global industry context reflects a lower 2024 market forecast than at the start of the period, when competitive dynamics have intensified due to rising industrial supply as well as increased Chinese competition,” Stellantis said in a release.

Ford ( F ) and GM ( GM ) also traded lower after the news.
Mon, Sep 30, 2024 at 6:35 am PDT

Slide the stock open, all eyes Powell

US stocks moved lower on Monday but were still set for strong monthly and quarterly gains as investors waited to hear from Federal Reserve Chair Jerome Powell in the run-up to a key monthly jobs report.

The S&P 500 (^GSPC), the Nasdaq Composite (^IXIC), and the Dow Jones Industrial Average (^DJI) were down about 0.2%.

With few catalysts earlier in the week, Powell's speech on Monday afternoon is expected to be key.
Mon, Sep 30, 2024 at 5:50 am PDT

DirecTV to buy Dish Network

Another media acquisition has been confirmed.

Yahoo Finance's Alexandra Canal reports:

Satellite TV provider DirecTV (T, TPG) said Monday it will buy rival Dish Network (SATS), including Dish's streaming brand Sling TV, in a debt swap transaction. Financial terms were not disclosed.

The deal, which is still subject to regulatory approval, is set to create the largest pay-TV provider in the US.

“The combination of DirecTV and Dish will benefit US video consumers by creating a stronger competitive force in a video industry dominated by streaming services owned by large technology companies and programmers,” the companies said in a joint statement.

Shares of Dish Network owner Ecostar ( SATS ) moved nearly 1% higher in premarket trading following the news. The stock rose nearly 10% on Friday after acquisition rumors intensified.