Here is what you need to know on Monday, October 11:
Markets remain in a cautious mood as traders look ahead to what may be a quiet session. Bond markets are closed on Monday in the US, but equity markets remain open. This makes it unclear if activity will be less than normal. Friday saw another weak jobs report, and the market took it badly. Inflation remains elevated. Once again Goldman Sachs cuts its growth forecasts for the US economy. This is the third month in a row Goldman has cut forecasts. This one not being as dramatic as ones previously when growth rates were halved. It nonetheless makes for sobering reading.
Is this stagflation before us, slowing growth but rising inflation? Certainly, inflation is looking to be a lot more transitory than the Fed had hoped and futures markets are now pricing in rate hikes by the Bank of England and ECB in December. Energy prices are surging and supply chain issues are not abating any time soon. It all makes for exciting reading if you are a bear, about time something got them excited!
The dollar is a touch higher at 1.1570 versus the euro. Oil smashed through $80 and is at $82 now. Bitcoin is $56,500, and Gold is $1,754. The yield on the US 10-year is 1.61%. Crypto and oil stocks then like this, but tech will be hammered. Bank stocks also like higher rates.
European markets are mixed: the FTSE is +0.3% as it has a heavy energy weighting, Dax -0.5%, and eurostoxx -0.5%.
US futures are lower: S&P -0.4%, Dow -0.2% and Nasdaq -0.8%.
Wall Street (QQQ) (SPY) top news
Goldman says tapering may be announced at the next Fed meeting as well as reducing US growth forecasts.
UK Prime minister paying close attention to what industry is saying about high energy prices.
Southwest (LUV) has to cancel up to 1800 flights due to bad weather this weekend as well as staff shortages and air traffic control issues.
Alibaba (BABA) and other Chinese tech names up sharply following Meituan's ruling.
Robinhood (HOOD): SEC filing details risks of increased regulation of crypto as well as possible new rules regarding payment for order flow-CNBC.
Baker Hughes (BKR): Morgan Stanley raises the price target.
Starbucks (SBUX): Deutsche Bank upgrades to Buy.
AT&T (T): Barclays lowers price target.
Netflix (NFLX): Credit Suisse raises the price target to $740. Keybanc also raises the price target.
Peloton (PTON): Keybanc cuts the price target to $155.
Hyliion (HYLN): UBS cuts the price target to $5.
ConocoPhipllips (COP) was downgraded by Goldman Sachs.
Upgrades, downgrades and premarket movers
Source: Benzinga Pro
Economic releases
No releases today
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