Attempted stock market rally encounters resistance; Oil prices and Treasury yields hit high levels
The stock market rally attempt has tried to gain traction, with blue-chip stocks flashing early buy signals. But the major indicators hit resistance at key levels and did not confirm the new high. The weaker-than-expected jobs report did not move stocks, but the 10-year yield continued to rise on expectations that the Federal Reserve would press ahead with its declining bond purchases. Crude oil prices have reached their highest levels in several years.
Facebook social networking site (FB) suffered a system-wide blackout Monday, as a whistleblower testified before Congress about social media’s focus on profit over safety. General motors (GM) aims to double revenue by 2030 on electric and self-driving cars. Tesla will move its headquarters to Austin, Texas, where it is set to begin rolling out the FSD Beta to more customers. Crude oil prices hit record highs, but then fell back. Confirms (AFRM) on her latest “Buy Now, Pay Later” partnership.
Market rally attempt underway
The Dow, S&P 500 and Nasdaq Composite rebounded from heavy selling on Monday, but hit resistance at the major moving averages. None of them have yet confirmed the new assembly attempt. Several blue-chip stocks showed promising actions, but they generally stalled late in the week along with the broader market. The 10-year Treasury yield exceeded 1.6%, the highest point in several months, despite the weak to mixed jobs report. Crude oil prices have reached multi-year highs.
Jobs are weak, but are they enough for federal needs?
The US added just 194,000 jobs in September, well short of supply. But the headline figure partly reflects a surprising 123K drop in government jobs. Average hourly wages also rose 4.6% from the previous year while the average workweek expanded. The unemployment rate fell to 4.8% from 5.2%, due to people leaving the labor force even though the household survey showed that the ranks of workers increased by 526 thousand.
Economists generally expect the Fed to move forward with reducing bond purchases at the November meeting.
Facebook problems continue
former Facebook social networking site (FB) employee-turned whistleblower Frances Haugen gave hours of devastating testimony at a Senate hearing, saying the social media giant consistently puts profits above safety and hurt teenage girls on Instagram with negative messages, among other allegations. The session was the culmination of an in-depth investigation and a series of articles published by the Wall Street Journal, based on thousands of documents Hogan had collected. The Facebook hearing is expected to lead to more hearings and regulations. Meanwhile on Monday, Facebook, Instagram and other FB properties were offline for six hours. FB stock fell strongly, its fourth consecutive weekly decline.
Tesla moves from headquarters to Austin
CEO Elon Musk said at a shareholder meeting October 7 in Austin, Texas, that the company will move its headquarters there from Palo Alto, California. Meanwhile, the FSD Beta 10.2 version of the self-driving technology was scheduled to be released at midnight Friday to about 1,000 owners with optimal safety scores. On October 2, Tesla reported strong deliveries for the third quarter, although a chip shortage hampered industry-wide production. Tesla delivered 241,300 electric vehicles in the third quarter, up from 201,250 in the second quarter and 184,800 in the first. The FactSet consensus was 232,000. The EV giant delivered 232,025 Model 3 and Y vehicles in the third quarter, as well as 9,275 Model S and X vehicles.
GM aims to double sales by 2030
General motors (GM) has set an ambitious goal of doubling annual revenue to $280 billion by 2030, saying it will increasingly benefit from subscription program services built on all-electric vehicles. GM expects new software-driven, higher-margin companies to increase profit margins to 12%-14%, up from 8% in 2020. The auto giant targeted a direct target Tesla (TSLA), saying it will outpace that competitor in electric vehicle sales. The Chevrolet Silverado will debut in January, following an advanced Hummer EV set to hit the road by the end of 2021. These new electric vehicles are spearheading General Motors’ planned rollout of 30 new electric vehicles globally by 2035. On the self-driving front, General Motors announced Ultra Cruise, its next generation hands-free driver assistance system. It confirmed that it’s looking to market Cruise, its driverless car company, and tout potential $50 billion in revenue by 2030. Cruise expects to cut transportation cost from about $5 a mile today to $1.50 a mile by removing the driver. While promoting electric vehicles, the auto giant expects to increase profits for its combustion trucks and SUVs as it makes the electric transition. GM stock jumped, flashing buy signals.
stronghold (F) And Stilants (STLA), which owns Fiat Chrysler and Peugeot, joined General motors (GM) in reporting double-digit declines in US sales for the third quarter. Ford’s sales fell 27% year over year. Stellantis sales are down 19%. Ford reported a big jump in retail sales in September versus August, and suggested chip shortages could start to ease. Ford cleared an aggressive entry.
OPEC stays on track
OPEC+ agreed to continue the path and slightly increase production by 400,000 barrels per day at its meeting on Monday. But analysts say the slow rollback of supply cuts in the era of the pandemic will not be enough to meet rising demand. Energy shortages related to natural gas in the UK and coal in China are expected to extend to the crude oil markets. gallon petroleum (CPE) raised production expectations for the third quarter and the full year on Tuesday after concluding its deal to buy Primexx Energy Partners’ assets in the Delaware Basin. Callon also agreed to sell off-central spaces in Eagle Ford.
Confirmed Rise in Target ‘Pay Later’ Deal
targeting (TGT) will cooperate with Confirms (AFRM) and Sezzle for the holiday season, becoming the latest retailer to jump in the “buy now, pay later” trend popular with younger shoppers. I confirm it already works with Walmart (WMT) and we recently reached an agreement with Amazon (AMZN). Confirmed stocks soared, the latest huge fintech move.
glamorous brands (AYI), a maker of lighting fixtures and building controls, reported fourth-quarter financial earnings that beat expectations, aided by a recovery in the construction market. Stocks broke out on Wednesday.
Tilray (TLRY), one of the Canadian cannabis producers, reported first-quarter results that missed expectations.
Levi Strauss (fibrous) beat the third quarter hits. The jeans maker’s forecast for the fourth quarter came in slightly below estimates. But it raised its full-year earnings forecast above expectations and said it saw full-year sales “close to 2019 levels”. Stocks jumped from their lowest level in six months.
Conagra Brands (CAG) for the financial results of the first quarter that exceeded estimates. The packaged food giant also raised its forecast for organic net sales growth for the full fiscal year.
Palantir . techniques (PLTR) won a contract to work on the US Army’s Intelligence Data and Analytics Foundation. The Army has selected Palantir for the next phase of its $823 million contract.
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