Stocks traded lower on Monday after the U.S. government avoided a shutdown and bond yields reached their highest levels since 2007.
Pershing Square's Bill Ackman warned of an economic slowdown due to the Federal Reserve's aggressive rate hikes. Speaking on CNBC's "Squawk Box," Ackman expressed concerns about the economy's deceleration and the impact of high mortgage and credit card rates. He anticipates the 30-year Treasury rate might reach the mid-5% range, and the 10-year rate could approach 5%. Despite the economy's current strength, Ackman noted signs of weakening. He also highlighted challenges for investors, especially in the commercial real estate sector, who borrowed at low fixed rates and are now facing repricing. Additionally, U.S. regulators approved Ackman's unique SPAC structure, named "SPARC".
Tesla's Q3 vehicle deliveries fell short of Wall Street expectations, leading to a 0.1% decline in its stock; Sphere Entertainment's shares climbed 10% after the debut of its Las Vegas Sphere venue; crypto-tied stocks, including Riot, Marathon Digital, Coinbase, and MicroStrategy, advanced alongside a crypto rally; Discover Financial Services surged nearly 6% after an 8K filing disclosed an agreement with the FDIC; gold and silver miner stocks struggled due to dropping metal prices; Instacart's shares dropped around 5% amid reports of a weak second-half outlook; SolarEdge's stock decreased by 3.7% after a Barclays downgrade; Insulet's stock rose by 5% after a Jefferies upgrade; Norfolk Southern's stock fell 3.2% post a Bank of America downgrade; Nvidia's shares went up 2.7% after Goldman Sachs' positive stance; Meta gained 1.7% after a positive reiteration by Truist; Apple's stock increased 1.2% after JPMorgan's reaffirmation; and Amazon rose 1.6% following UBS' continued buy rating.
This week, the focus shifts to the labor market with three significant reports set to release, providing insights into the broader economy and potential implications for the Federal Reserve's interest rate decisions. Key reports include the Job Openings and Labor Turnover Survey on Tuesday, ADP's September jobs report on Wednesday, and the official September jobs report on Friday, which is projected to report a gain of 155,000 jobs, down from August's 187,000, with a decrease in the unemployment rate to 3.7%.
