Treasuries Rally As Bleak Jobs Spur Fed-Cut Bets: Markets Wrap

Traders are also keeping a close eye on a slate of policymakers slated to speak on Thursday. Fed Bank of Chicago President Austan Goolsbee told CNBC that a lack of inflation data during the shutdown makes him more uneasy about continuing rate cuts.

The US central bank last month lowered rates for a second straight meeting in an effort to bolster the labor market. But inflation, which at 3% in September remained well above the Fed’s 2% target, has also raised concerns among some officials that it will take longer to come down than they thought.

The S&P 500 was little changed. The yield on 10-year Treasuries slid five basis points to 4.10%. A dollar gauge fell 0.2%.

Corporate Highlights:

• Qualcomm Inc., the largest maker of smartphone processors, became the latest chipmaker to deliver an upbeat forecast and still leave investors underwhelmed.
• Arm Holdings Plc, which provides the most widely used technology in computing processors, gave a bullish revenue forecast, helped by increasing interest in designing chips to run AI data centers.
• DoorDash Inc., the US food-delivery app leader, said it will spend more on investments next year to build new products and bolster internal tools, weighing on its earnings forecast.
• Peloton Interactive Inc. issued a voluntary recall on about 833,000 units of its high-end Bike+ model in the US following reports that some seat posts broke, causing users to fall off.
• Lyft Inc. projected an acceleration in bookings this quarter, easing concerns about the ridehailing company’s efforts to expand globally and maintain customer loyalty.
• Lucid Group Inc. posted a worse-than-expected third-quarter loss as it grapples with sluggish production of its Gravity SUV and a challenging trade environment.
• Walt Disney Co. signed a new multiyear deal to make DraftKings Inc. the official betting site and odds provider for its ESPN sports networks, replacing a venture it had with casino operator Penn Entertainment Inc.
• Warner Bros. Discovery Inc., the parent of HBO and CNN, reported third-quarter revenue that missed analysts’ expectations, providing a glimpse into the company’s businesses as it puts itself up for sale.
• SoftBank Group Corp. explored a potential takeover of US chipmaker Marvell Technology Inc. earlier this year, people familiar with the matter said, in what would have been the semiconductor industry’s largest-ever deal.
• ConocoPhillips raised its total spending plans for the Willow oil and natural gas project in Alaska to as much as $9 billion, citing inflation and other rising costs.
• Under Armour Inc. said sales might fall as much as 5% this fiscal year, a bigger decline than Wall Street estimated and raising concern that the sportswear company’s turnaround effort isn’t making enough progress.
• Moderna Inc. posted a narrower third-quarter loss than Wall Street expected, a sign that its cost-cutting measures are helping offset the decline of its Covid business.
• A new weight-loss drug from Eli Lilly & Co. helped patients shed as much weight as popular shots like Zepbound, giving the company another edge in the fast-growing obesity market.
• Krispy Kreme Inc. generated positive cash from operations in the third quarter for the first time in three quarters — and its highest since late 2022 — as the doughnut maker progressed with its turnaround plan following the end of its US McDonald’s partnership in June.
• Aquarian Holdings agreed to buy insurer and annuity provider Brighthouse Financial Inc. for $4.1 billion in cash.
• Snap Inc. announced a $400 million partnership with Perplexity AI Inc. to incorporate its AI-powered search engine into Snapchat.
• Charles Schwab Corp. agreed to buy Forge Global Holdings Inc., a marketplace for buying and selling shares of private companies, for about $660 million.
• CarMax Inc. dropped after terminating William D. Nash as chief executive, following a nosedive of the used-car retailer’s market value so far this year.
• EchoStar Corp. reported a $16.5 billion impairment charge and agreed to sell more spectrum licenses to Elon Musk’s SpaceX for $2.6 billion as it works to unwind parts of its 5G wireless buildout.
• Tapestry Inc. raised its fiscal full-year outlook after quarterly earnings beat expectations, with the company’s Coach brand fueling sales growth despite a more cautious shopper.
• United Parks & Resorts Inc.’s third-quarter revenue missed estimates, as weather disruptions and softer discretionary spending weighed on attendance.
• Deutsche Boerse AG and Nasdaq Inc. risk hefty European Union fines after the bloc’s antitrust watchdog opened a full-scale investigation into a suspected cartel linked to listing, trading and clearing of derivatives.
• Commerzbank AG plans to sell significant risk transfers worth €5 billion ($5.8 billion) in the fourth quarter as the German lender seeks to free up capital.
• HelloFresh SE sank after short seller Grizzly Research LLC published a report that claimed the German subscription meals company’s management is “seemingly prioritizing self-enrichment at shareholders’ expense.”
• Air France-KLM reported earnings that missed expectations, hurt by strikes and higher taxes.
• Worldline SA announced a €500 million ($576 million) capital raise to strengthen its balance sheet and give its turnaround plans breathing space.
• AstraZeneca Plc’s profit rose more than analysts anticipated last quarter, buoyed by demand for its blockbuster cancer and diabetes drugs.
• Diageo Plc lowered its full-year outlook for sales and profit as weak demand in China and the US weigh on the British distiller.
• A.P. Moller-Maersk A/S shares fell with investor disappointment over a smaller-than-expected improvement in the container-shipping giant’s full-year profit guidance.
• Volvo Car AB is seeking a long-term operating return of 8%, helped by new electric models like the EX60 sport utility vehicle and deeper ties with parent Geely.
• Nissan Motor Co. promised to build on a better second quarter despite longer-term forecasts signaling persistent challenges for the carmaker’s efforts to turn around its worst financial crisis in decades.

Some of the main moves in markets:

Stocks

• The S&P 500 fell 0.1% as of 9:31 a.m. New York time
• The Nasdaq 100 fell 0.3%
• The Dow Jones Industrial Average was little changed
• The Stoxx Europe 600 fell 0.3%
• The MSCI World Index was little changed

Currencies

• The Bloomberg Dollar Spot Index fell 0.2%
• The euro rose 0.3% to $1.1530
• The British pound rose 0.3% to $1.3092
• The Japanese yen rose 0.4% to 153.54 per dollar

Cryptocurrencies

• Bitcoin fell 0.9% to $102,738.39
• Ether fell 2.6% to $3,352.75

Bonds

• The yield on 10-year Treasuries declined five basis points to 4.10%
• Germany’s 10-year yield declined one basis point to 2.66%
• Britain’s 10-year yield declined three basis points to 4.43%
• The yield on 2-year Treasuries declined five basis points to 3.58%
• The yield on 30-year Treasuries declined four basis points to 4.70%

Commodities

• West Texas Intermediate crude fell 0.6% to $59.23 a barrel
• Spot gold rose 0.4% to $3,993.84 an ounce

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