S&P 500 futures increased by 15 points, Nasdaq 100 futures went up by 73 points, and Dow Jones Industrial Average futures rose by 60 points. The stock futures are looking up as investors await the September Employment Situation report at 8:30 ET. Major tech stocks are also showing strength, contributing to early gains.
A positive sentiment is supported by news that the International Longshoremen’s Association and the United States Maritime Alliance have reached a tentative wage agreement and extended the Master Contract until January 15, 2025, to further negotiate other matters.
Treasury yields are slightly rising before the jobs report, which might influence the Federal Reserve's rate cut decisions in the near future. The 10-year yield is up two basis points to 3.87%, and the 2-year yield is up two basis points to 3.73%.
Today's News
In a surprising turn of events, the U.S. nonfarm payrolls surged by 254,000 in September, significantly surpassing the expected 132,500. The unemployment rate also fell to 4.1%, better than the anticipated 4.2%. Average hourly earnings rose by 0.4% month-over-month, slightly above the consensus, although the year-over-year increase was 4.0%, aligning closely with expectations. This labor market strength could influence the Federal Reserve's upcoming policy decisions.
Google (GOOGL, Financial) has announced that it will cease linking to New Zealand news reports if the country's government passes a bill requiring tech companies to pay for news content. The Fair Digital News Bargaining Bill aims to ensure fair compensation for content appearing on platforms. Google's potential withdrawal underscores the ongoing global debate about the financial responsibilities of tech giants regarding news content.
Dockworkers on the East and Gulf coasts ended their three-day strike after agreeing to a tentative deal that includes a remarkable 62% wage increase over six years. The agreement raises average wages to $63 per hour and extends the master labor contract until January 15, allowing more time for negotiations on unresolved issues, such as the demand for an automation ban.
SilverCrest Metals (SILV, Financial) saw a significant pre-market jump after Coeur Mining (CDE, Financial) announced an all-stock acquisition valued at approximately $1.7 billion. The deal, which offers a 22% premium to SilverCrest's recent closing price, will see Coeur shareholders owning 63% of the combined company. This acquisition is expected to enhance Coeur's production capabilities, particularly with SilverCrest's Las Chispas mine in Mexico.
UBS downgraded Mobileye Global (MBLY, Financial) to Neutral from Buy, citing challenges such as China mix and technological concerns. The analysts suggested that while Mobileye holds long-term value, growth is expected to resume only after 2025. Intel's (INTC, Financial) ownership of Mobileye adds further uncertainty to the stock's performance.
In the semiconductor industry, the production of pure quartz in Spruce Pine, North Carolina, has been halted indefinitely due to Hurricane Helene. This disruption could lead to supply constraints for semiconductors, as the quartz from this region is crucial for manufacturing silicon wafers used in various electronic components.
The European Commission's proposal to impose tariffs on Chinese battery electric vehicles has garnered the necessary support from EU member states. The tariffs, ranging from 7.8% to 35.3%, are in addition to the existing 10% import duty. This move is part of an ongoing anti-subsidy investigation, with the EU and China working towards a WTO-compatible solution.
BingEx Limited (FLX, Financial), a Chinese courier firm, priced its IPO at $16.50 per share, valuing the company at $1.17 billion. BingEx, known for its FlashEx services, has expanded its operations to 295 cities in China, distinguishing itself by prioritizing service quality over cost reduction as it scales.
American Financial (AFG, Financial) and Arrow Financial (AROW, Financial) were among the companies that announced dividend increases this week. American Financial raised its dividend by 12.7% to $0.80, while Arrow Financial increased its payout by 3.7% to $0.28. Upcoming ex-dividend dates include General Mills (GIS) and AT&T (T).
Summit Therapeutics (SMMT) shares surged after receiving the FDA's Fast Track designation for ivonescimab, a cancer drug for lung cancer treatment. The drug, developed in collaboration with Akeso, is undergoing multiple Phase III trials, with plans to initiate further studies in 2025.
Bank of America Securities downgraded Chubb (CB) to Underperform and The Hartford Financial Services (HIG) to Neutral, citing a potential reversal in trends that previously benefited commercial property and casualty underwriters. The sector's earnings outlook remains tepid, and the stocks may face challenges as sector rotation dynamics shift.
Thermo Fisher (TMO) faced scrutiny following an FDA inspection that found issues at its Greenville, N.C. plant during a production run for Beyfortus, an RSV treatment developed with AstraZeneca (AZN) and Sanofi (SNY). Despite resolving the issues, the plant has a history of compliance breaches, raising concerns about drug contamination.
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