Here is what you need to know on Thursday, September 30:
Quarter end approaches, and things are not rosy in many investors' minds. The equity market tested out its usual bounce strategy on Wednesday and found things a little rusty as the indices barely made it into the green. Thursday may see some jumpiness as fund managers close some positions ahead of the month and quarter end, but we still remain bearish overall with headwinds still in focus. While the US did make some progress in avoiding a government shutdown, fears over the debt ceiling persist, although we give these little credence. Evergrande looks set to default as another payment on overseas debt is reportedly missed. China may contain this, but sentiment is waning. China looks to have its own problems as the manufacturing PMI was weaker than expected.
It is all about yields though, and we cannot see market man Powell playing any more helping hands this time around. The yield is spiking, and the dollar is pricing in further rises. Powell admitted what we seemingly all knew but had ignored: that inflation might persist. German data earlier this week put producer prices at a 40-year high, so not too transitory then! The US CPI just out is also high and going higher, and the list of companies citing supply chain issues and price pressures is getting out of hand.
The dollar as mentioned is higher, at 1.1580 versus the euro. Oil is lower at $74.80, and Gold is at $1,727. Bitcoin is higher at $43,200. Yields on the US 10-year debt are 1.54%.
European markets are mixed: Eurostoxx flat, Dax -0.35 and FTSE +0.35.
US futures are positive: S&P and Dow are +0.3%, the Nasdaq is +0.4%.
Wall Street (SPY) top news
World Bank Chief Economist says he thinks inflation is not transitory!
US Senate reaches a deal to avoid a shutdown.
German CPI is in line at 4.1%.
US CPI 6.7% versus 6.6% expected.
Bed Bath & Beyond (BBBY) is down 23% premarket on results.
Perrigo (PRGO) up 14% on ruling from Ireland regarding taxes due. Jefferies upgrades.
CarMax (KMX) down 8% on results.
Virgin Galactic (SPCE) up 8% as FAA clears it to fly.
Kohls (KSS) down 7% as Bank of America downgrades.
Xerox (XRX) up 5% premarket.
McCormick (MKC) cuts full-year forecast for earnings, beats EPS estimates.
Merck (MRK) to buy Acceleron Pharma (XLRN) for $180 per share.
Lordstown (RIDE) reportedly to sell Ohio factory to Foxconn-Bloomberg.
Snowflake (SNOW) upgraded by BTIG.
Upgrades, downgrades and premarket movers
Source: Benzinga Pro
Economic releases
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