CNBC
Dow futures dropped about 350 points, or 1%, on Wednesday as October so far lives up to its reputation for extreme volatility. S&P 500 and Nasdaq futures fell more than 1.2% and nearly 1.5%, respectively, in premarket trading. On Tuesday, the Dow Jones Industrial Average, S&P 500 and Nasdaq all soared roughly 1% in a rebound from the prior session's slide. On Friday, Wall Street started the new month, after a rough September, with a strong rally. (CNBC)
Many market strategists pointed out that even though October can be tricky, the fourth quarter has historically been a mostly strong period for stocks. The Nasdaq was 6% away from its Sept. 7 record close. The S&P 500 was 4.2% from from its Sept. 2 record close. The Dow was 3.7% away from its Aug. 16.
Rising bond yields on Wednesday were pressuring tech stocks, with Apple, Microsoft and Amazon all falling more than 1% each in the premarket. The 10-year Treasury yield topped 1.55% ahead of the first of three key jobs reports. (CNBC)
Before the opening bell Wednesday, ADP is out with its September look at private sector employment at 8:15 a.m. ET. Economists expected that U.S. companies created 425,000 new jobs during the month compared with 347,000 in August. The Labor Department issues weekly jobless claims Thursday morning, one day before the big September employment report.
U.S. oil prices on Wednesday pulled back modestly from near seven-year highs, on track to break a four-session winning streak. West Texas Intermediate crude, however, gained 1.7% on Tuesday, settling at $78.93 per barrel after hitting a session high of almost $80. WTI has gained nearly 65% in 2021, adding price pressures in the U.S. at a time when the Fed is trying to gauge the staying power of higher inflation. (Reuters)
IN THE NEWS TODAY
Sen. Joe Manchin, a high-profile Democratic holdout, wants a bill closer to $1.5 trillion. For passage, Democrats need every vote in the 50-50 Senate and all but three in the House.
Biden said Democrats are considering a change to the Senate's filibuster rules in order to quickly pass a debt ceiling increase needed avoid a devastating credit default. The deadline set by the Treasury Department is Oct. 18. Getting rid of the filibuster would lower the typical 60-vote threshold for passage to 50. (AP)
Home Depot (HD) has hired Walmart (WMT) to deliver paint, tools and other online purchases to its customers' doors. Home Depot is the first customer for Walmart's new delivery business, GoLocal. The same-day and next-day delivery service will be limited to home improvement purchases that can easily fit into a car, such as fasteners, boxes of nails or paint brushes. (CNBC)
STOCKS TO WATCH
Constellation Brands (STZ) reported adjusted quarterly earnings of $2.38 per share, missing the $2.77 consensus estimate, although revenue did beat Wall Street forecasts and Constellation increased its full-year earnings outlook. Shares fell 2.2% in the premarket.
Acuity Brands (AYI), a maker of lighting and building management systems, reported an adjusted quarterly profit of $3.27 per share, beating the consensus estimate of $2.85, with revenue topping forecasts as well. The earnings beat came amid what the company terms a "challenging" environment that included higher labor, materials and freight costs.
Palantir Technologies (PLTR) surged 8% in the premarket following news that it won an $823 million Army contract to provide its Gotham platform, an operating system designed to optimize defense decision-making.
Norwegian Cruise Line (NCLH)CEO Frank Del Rio told CNBC's Closing Bell that the company would have its full fleet in operation by April for the first time since the pandemic began. He said 75% of ships should be sailing by the end of this year. Norwegian shares fell 1.7% in premarket trading.
Seagate Technology (STX) slid 3.3% in the premarket after Morgan Stanley downgraded the stock to "equal weight" from "overweight," citing deteriorating industry data including rising inventory levels and a drop in corporate spending plans.
General Motors (GM) shares will be on CNBC's watch list today as GM holds its investor day, set to highlight its plans for electric vehicle growth.
Southwest Gas (SWX) struck a deal to buy Questar Pipelines from Dominion Energy (D) for $1.975 billion in cash and assumed debt. Investor Carl Icahn, who holds a 4.9% stake in Southwest Gas, had sent a letter to the company objecting to such a deal when reports of it first surfaced earlier this week.
CONTRIBUTORS
Matthew J. Belvedere
@Matt_Belvedere
Peter Schacknow
@peterschack
