U.S. markets closed mixed on Friday, with all three major indices recording gains for the third consecutive week. Data from the Federal Reserve's preferred inflation measure indicated easing inflation pressures and a cooling economy, reinforcing market expectations for further interest rate cuts in the coming months. The China Golden Dragon Index closed up by 4%, hitting a new high in over a year.
This week, the Dow Jones Industrial Average rose by 0.59%, the S&P 500 by 0.62%, and the Nasdaq by 0.95%, marking three straight weeks of gains for all three indices.
The performance of major tech companies varied. On September 27th, the Dow Jones Industrial Average gained 137.89 points (0.33%) to close at 42,313.00 points; the Nasdaq dropped 70.70 points (-0.39%) to 18,119.59 points; and the S&P 500 fell 7.20 points (-0.13%) to 5,738.17 points.
Among the leading tech giants—TMAANMG—Tesla (TSLA) dropped 2.32%, Meta Platforms (META) gained 0.40%, Apple (AAPL, Financial) fell 0.29%, Amazon (AMZN) rose 0.91%, Nvidia (NVDA) declined 1.59%, Microsoft (MSFT) decreased 0.78%, Alphabet-Google (GOOGL) went up by 0.89%, while Tencent (TCEHY) fell 1.20% and Alibaba (BABA) increased 0.23%.
Looking ahead to next week, several key economic indicators and company earnings reports are anticipated:
1. Monday, September 30th: The Chicago PMI and Dallas Fed Business Activity Index for September will be released. ReposiTrak (TRAK) and SolarBank (SUUN) will report earnings pre-market, while Marti Technologies (MRT) will report post-market.
2. Tuesday, October 1st: Key releases include the final September Manufacturing PMI, August Construction Spending, August JOLTS Job Openings, and September ISM Manufacturing PMI. Nike (NKE) and Paychex (PAYX) will report pre-market, while McCormick & Company (MKC) and Acuity Brands (AYI) will report post-market.
3. Wednesday, October 2nd: Reports on weekly API crude oil inventories, September ADP Employment, and weekly EIA crude oil inventories will be released. Conagra Brands (CAG) and RPM International (RPM) will report pre-market, while Levi Strauss (LEVI) and NovaGold (NG) will report post-market.
4. Thursday, October 3rd: Releases include September Challenger Job Cuts, weekly Initial Jobless Claims, final September Services PMI, August Factory Orders, August Durable Goods Orders, September ISM Non-Manufacturing PMI, and weekly EIA Natural Gas Inventories. Constellation Brands (STZ) and AngioDynamics (ANGO) will report pre-market.
5. Friday, October 4th: September Nonfarm Payrolls and Unemployment Rate will be announced. Apogee Enterprises (APOG) will report pre-market.
Apple (AAPL, Financial) exits OpenAI funding talks: Apple reportedly withdrew from the latest round of funding talks with OpenAI, which was expected to bring in nearly $7 billion. Microsoft (MSFT) and Nvidia (NVDA) are expected to participate, with Microsoft likely adding another $1 billion to its previous $13 billion investment. The negotiations are ongoing, and participant details may change.
Berkshire Hathaway’s (BRK.A) extensive sell-off of Bank of America (BAC) shares continues. Over three days from September 25th to 27th, Berkshire sold a cumulative 11.678 million shares, cashing out approximately $461 million. This further reduces their ownership to 10.3%, nearing regulatory thresholds. Since mid-July, Berkshire's total sales of Bank of America shares have amounted to around $9.4 billion, with current holdings at 10.3%, close to the 10% regulatory threshold. If the holdings dip below this level, Berkshire will not need to disclose transactions within two business days but can provide quarterly updates. Despite the sell-off, Berkshire remains the largest shareholder, with holdings valued at nearly $32 billion.
Chinese stocks continued their upward trend last Friday. Pinduoduo (PDD) rose 5.7%, Alibaba (BABA) up 3.6%, Bilibili (BILI) surged 7.8%, among others such as So-Young International (SY), Tuniu (TOUR), JinkoSolar (JKS), Baidu (BIDU), and Tencent Music (TME). Morgan Stanley (MS) indicated that the Shanghai and Shenzhen 300 Index might have roughly 10% more growth potential in the short term. Hedge fund manager David Tepper (Trades, Portfolio) expressed interest in buying Chinese assets.
