Stocks Close Little Changed as Bond Yields Slip

Dow Rally Falls Short of Gains Ahead of Jobs Data

36 minutes ago

The Dow Jones Industrial Average finished the day essentially unchanged, ticking lower by 10 points, or 0.03%. The index sank as much as 0.6% in early trading before rebounding as investors awaited key jobs data that is likely to figure prominently in the Fed’s next interest rate decision at the end of the month.

Walt Disney Company (DIS) shares moved higher by 1.9% after it announced discounted children’s tickets at its theme parks as part of a promotional plan to boost lagging attendance. The company recently announced a $60 billion investment in its parks unit, its largest source of revenue. 

Merck & Co. (MRK) shares gained 1.4% after the company said its cancer treatment Keytruda met a key goal in a late-stage trial of its efficacy in treating bladder cancer. 

UnitedHealth Group (UNH) moved higher by 1.1% and Johnson & Johnson (JNJ) rose 1%. Health care was one of the day’s best-performing sectors, gaining 0.5%. 

Shares of Coca-Cola (KO) tumbled nearly 5%, their biggest one-day drop in over three years. The consumer staples sector sank more than 2% today, dragged down by beverage and packaged food makers amid reports blockbuster weight loss drugs could hit sales. 

Procter & Gamble (PG) shares fell 1.5% and Walmart (WMT) dropped 1.2%. 

Dow Inc. (DOW) shares fell 2.5% while Caterpillar (CAT) shares were down 1.6%.

-Terry Lane

Average Mortgage Rate Hits 7.49%, Highest Since 2000

1 hr 29 min ago

The last time mortgage rates were this high, you could check on them using the free 1,000 hours of dial-up Internet access CD-ROM that America Online sent you in the mail.

The average rate offered for a 30-year fixed mortgage rose to 7.49% this week, up from 7.31% the week before, and the highest since December 2000, mortgage giant Freddie Mac said Thursday.

-Diccon Hyatt

Junk Food, Alcohol Stocks Junked by Weight-Loss Drugs

1 hr 55 min ago

Beverage makers were some of the day’s worst-performing stocks Thursday as reports raised concerns that weight loss drugs like Novo Nordisk’s (NVO) Ozempic and Wegovy could deal a huge blow to sales as they gain in popularity. 

Walmart Inc. (WMT) has already noticed shoppers who buy the appetite suppressants at its pharmacies are picking up less when they hit the grocery aisle. “We do see a slight pullback in overall basket,” CEO of Walmart U.S. John Furner told Bloomberg. () 

And executives at Campbell Soup Co. (CPB) and Conagra Brands (CAG) are being asked by investors what risks the drugs pose to sales and how they’ll respond, according to a Wall Street Journal report.

Of the S&P 500’s ten biggest losers Thursday, six were beverage stocks:

• Molson Coors Beverage Co. (TAP), down 6%
• PepsiCo Inc. (PEP), down 5%
• Mondelez International Inc. (MDLZ), 4% lower
• Coca-Cola Co. (KO), down 4%
• Monster Beverage Corp (MNST), down 4%
• Keurig Dr. Pepper Inc. (KDP), 4% lower

Rivian Shares Tank on Announcement of $1.5 Billion Convertible Bond Offering

3 hours ago

Rivian Automotive Inc. (RIVN) shares cratered Thursday after the electric vehicle (EV) maker announced a $1.5 billion dollar “green” convertible bond offering.

The maker of the R1T pickup and R1S SUV said Wednesday that it would offer the convertible senior notes due in 2030 to qualified institutional buyers.

Convertible bonds have lower coupon rates than regular bonds, making them a popular option for companies looking to raise capital when interest rates are rising. However, existing shareholders risk having their stakes diluted by bondholders who convert their debt to equity.

-Bill McColl

Oil Prices Sink to Fresh 1-Month Low

4 hr 35 min ago

Oil futures fell for a second day Thursday after plummeting 5% yesterday on concerns rising interest rates will weigh on the economy and temper demand.

The front-month West Texas Intermediate (WTI) futures contract, the U.S. oil benchmark, was down nearly 2% midday, trading around $83, its lowest since late August. Brent crude, the European benchmark, slipped to about $84.50, also a 1-month low.

Crude oil, after a 30% run-up from late June to September, has fallen in four of the last five sessions as bond yields have surged. With yesterday’s sell-off, WTI has given up all of its gains this calendar year.

Amazon, Microsoft, and Google Face Investigation Into Cloud Services by UK Regulators 

5 hr 19 min ago

Amazon (AMZN), Microsoft (MSFT), and Alphabet’s Google (GOOGL) face an investigation into cloud services by the U.K. Competitions and Markets Authority, which said it’s looking into whether big cloud services providers make it difficult for businesses to switch or use more than one provider.

Amazon dismissed the concerns, saying they are “based on fundamental misconceptions about the IT sector.” The authority expects that its investigation will be concluded by April 2025.

Amazon shares were down more than 1.5% midday Thursday, while Microsoft stock fell 0.7% and Google shares lost 0.5%.

-Fatima Attarwala

Jobless Claims Rose Last Week, but Less Than Expected

6 hr 26 min ago

Initial jobless claims rose to 207,000 in the last week of September from 205,000 the prior week, a smaller increase than economists expected. 

The four-week moving average fell to 208,750, continuing the downward trend that started at the end of August. Still, initial claims have ticked up modestly from last year, when the four-week moving average was 190,750.

Investors and the Federal Reserve are looking for modest increases in unemployment and decreases in hiring as a sign that interest rate hikes are tempering demand. A less competitive job market is also expected to relieve some of the upward pressure that rising wages put on the prices of goods and services. 

There have been signs lately of a weakening labor market. The U.S. unemployment rate ticked up to 3.8% in August, still historically low but its highest this year. The quit rate, a rough gauge of workers’ optimism about finding jobs, held steady at 2.3% in August after falling to pre-pandemic levels in July. And though job openings unexpectedly jumped to 9.3 million in August, the number of unemployed workers per job opening held steady at 0.7, just below its pre-pandemic level.

U.S. Trade Deficit Shrank to a 3-Year Low in August

7 hr 8 min ago

The U.S. trade deficit shrunk nearly 10% to $58.3 billion in August, its lowest since September 2020.

Goods exports rose more than $3 billion, driven by a $2 billion increase in crude oil and fuel exports. Services exports rose $1 billion to $84.5 billion, the highest on record, boosted by an $800 million increase in spending by travelers visiting the U.S.

Meanwhile, goods imports shrank $2.6 billion as demand for consumer and capital goods softened. Cell phones and other household goods accounted for $1.5 billion of the decrease, while semiconductor and electric equipment imports also shrank.

Stocks Making the Biggest Moves Premarket

7 hr 59 min ago

Lamb Weston Holdings Inc. (LW): Shares of the frozen food company climbed more than 10% after its quarterly earnings beat analysts’ estimates on the top and bottom lines. 

VinFast Auto Ltd. (VFS): Shares of the Vietnamese electric car maker jumped 9% after it reported deliveries surpassed 10,000 cars in the third quarter, helping the company increase revenue by more than 150% year-over-year. 

Rivian Automotive Inc. (RIVN): Shares of the electric truck maker fell after it said it would sell up to $1.5 billion in convertible bonds and offered third-quarter guidance at the low end of analysts’ estimates. 

Clorox Co. (CLX): The cleaning product maker’s shares fell more than 4% after it said it expects sales to decline between 23% and 28% in the most recent quarter due to a previously disclosed cybersecurity attack that disrupted order processing. The company forecast a net loss of between 35 cents and 75 cents a share.

Sunrun Inc. (RUN): Shares continued to slide after Truist Securities yesterday downgraded the stock and competitor Sunnova Energy (NOVA) to hold from buy, citing the impact higher interest rates will have on residential solar panel adoption. Sunrun shares are at their lowest since April 2020. 

5 Things to Know Before Markets Open

8 hr 25 min ago

Here’s what investors need to know to start their day:

1. Exxon Mobil (XOM) expects its third-quarter earnings to increase by $2.1 billion on higher oil prices and refining margins, with analysts suggesting that the oil giant’s earnings could be about $2.33 a share.
2. Jobless claims in the last week of September inched up to 207,000 from the week prior week’s upwardly revised level of 205,000. Economists had expected claims to rise further to 210,000.
3. Clorox Co. (CLX) shares fell nearly 3% in pre-market trading after the bleach maker cut its outlook following a cyberattack that it first disclosed in August.
4. Shares of electric-vehicle maker Rivian Automotive (RIVN) plummeted almost 9% in pre-market trading after the company said it plans to sell $1.5 billion in convertible bonds, which are generally seen negatively by investors due to their potential to dilute share value.
5. Cleveland Fed President Loretta Mester will speak at 9 a.m. ET at a payments symposium, while San Francisco Fed President Mary Daly will talk at 12 p.m. ET and Fed Vice Chair Michael Barr will speak on cyber bank risks at 12:15 p.m. ET.

-Terry Lane

Stock Futures Headed Higher in Premarket Trading

9 hr 3 min ago

Futures contracts connected to the Dow Jones Industrial Average rebounded from earlier lows to trade flat a little more than an hour before markets opened.

S&P 500 futures were up 0.1%.

Nasdaq 100 futures contracts climbed 0.2%.