U.S. stock futures fell on Monday as investors overhauled their views on interest rate cuts following the release of a big jobs report ahead of key inflation data and the start of earnings season.
Dow Jones Industrial Average futures (YM=F) fell 0.4% after hitting a record high after ending the week on a sharp rise. S&P 500 futures (ES=F) fell by about 0.5%, and the tech-heavy Nasdaq 100 (NQ=F) led the decline by 0.6%.
Hopes for a major interest rate cut by the US Federal Reserve disappeared after September’s better-than-expected jobs report allayed concerns about cracks in the labor market. The benchmark 10-year Treasury yield (^TNX) hit 4% for the first time since August amid doubts about the Fed’s next move.
Read more: What Fed Rate Cuts Mean for Bank Accounts, CDs, Loans, and Credit Cards
Traders abandoned bets on a 0.50% rate cut in November last week and now see an 88% chance of a 0.25% rate cut, according to the CME FedWatch tool. Such expectations could depress stock prices, which have soared to record highs amid expectations of a sharp interest rate cut and a “soft landing” for the economy.
The October consumer inflation report on Thursday is awaited for new insight into whether the Fed is making progress in reducing already chilling price pressures to its 2% target.
The start of the third quarter results is in the spotlight as Goldman Sachs (GS) raised its target for the S&P 500 Index (^GSPC), expecting higher corporate profit margin growth. After the release of Pepsi’s (PEP) earnings on Thursday, the season begins in earnest with reports from major banks JP Morgan (JPM), Wells Fargo (WFC), and BlackRock (BLK) on Friday. .
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Monday, October 7, 2024 05:38 PDT
Pfizer stock soars on report that Starboard has acquired $1 billion in stock
Pfizer (PFE) stock rose 2.6% in premarket Monday as investors reacted to multiple media reports that activist investor Starboard Value acquired a $1 billion stake in the pharmaceutical giant.
Starboard has approached Pfizer executives Ian Rand and Frank D’Amelio to help turn the drug company around, various media outlets reported, citing anonymous sources. Pfizer, the maker of the world’s first approved COVID-19 vaccine, has struggled to maintain its post-pandemic advantage. Mr. Rand and Mr. D’Amelio have expressed interest in supporting Starboard, the Wall Street Journal reported. Starboard’s plans and the changes it will make to Pfizer are unclear.
The stock’s price action early Monday morning should put the stock on a positive footing this year, but the stock remains well below its all-time high of around $60 in 2022.
Pfizer is scheduled to report its financial results on October 29th. Wall Street analysts expect the company’s sales to rise about 12% from a year ago to $14.8 billion. Only half of analysts covering the stock have a buy recommendation, according to Bloomberg data.
