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US stocks start jobs report week lower with Powell set to speak


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

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

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

Investors are now bracing for the September jobs report, due out on Friday, which is seen as posing an important test for the recent rally. The pressing question is just how quickly the labor market is slowing as the market weighs whether the Fed has acted aggressively to protect a healthy economy or to help a flailing one. Fed Chair Powell’s comments on the outlook for the economy on Monday afternoon could help settle that debate.

Read more: What the Fed rate cut means 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 tumbled 13% after the Chrysler parent slashed its margin outlook, citing supply chain disruption and weakness in China. General Motors (GM) and Ford (F) were both down around 3% in tandem. Aston Martin (AML.L, ARGGY) shares plunged over 20% after the luxury automaker warned on earnings too.

Overseas, China’s benchmark stock index (000300.SS) posted its biggest gain since 2008, entering a bull market, as buyers rushed in ahead of a weeklong holiday. But in Japan, the Nikkei 225 (^N225) tumbled as a surprise vote wrong-footed investors betting on an easing-friendly prime minister.

Oil prices swung lower after rising as Israel stepped up its attacks in Lebanon and traders weighed the likely boost from China’s measures to support the world’s second-biggest economy.

Live3 updates

  • 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 in a range of $5.58 billion to $11.17 billion. The automaker said it also expects its adjusted operating profit margin between 5.5% and 7% this year, lower than the double-digit margins Stellantis initially expected.

    “Deterioration in the global industry backdrop reflects a lower 2024 market forecast than at the beginning of the period, while competitive dynamics have intensified due to both rising industry supply, as well as increased Chinese competition,” Stellantis said in a release.

    Ford (F) and GM (GM) also traded lower on the news.

  • Stocks slide at the open, all eyes on Powell

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

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

    With few catalysts to kick off the week, Powell’s speech on Monday afternoon is expected to be key.

  • 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, through a debt exchange transaction. Financial terms were not disclosed.

    The deal, which is still subject to regulatory approval, is set to create one of the US’s largest pay-TV providers.

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

    Shares in EchoStar (SATS), which owns Dish Network, moved about 1% higher in premarket trading following the news. The stock had surged nearly 10% on Friday after the acquisition rumors intensified.



Read More: US stocks start jobs report week lower with Powell set to speak

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