Stock market today: Stocks stagnate with inflation, earnings at a glance

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Updated 9:04 a.m. EST

U.S. equity futures rose on Monday as the dollar consolidated gains against its global peers as investors extended their pullback from risky markets following an escalation in military action in Ukraine and before the unofficial start of the third quarter earnings season later this week. .

Reports from Kyiv suggest Russian bombs targeted both Ukraine’s capital and energy facilities in cities across the country on Monday, apparently in retaliation for the downing of a key bridge linking Crimea to the mainland.

The attacks on Kyiv, the largest in several weeks, rattled global markets and pushed investors into the arms of the safe-haven US dollar, which rose 0.3% against its global peers to change hands at 113.110 at the start of trading in New York.

The dollar index, which tracks the greenback against a basket of six global currencies, was also lifted by last week’s stronger-than-expected September payrolls report, which showed U.S. employers created 263,000 new jobs last month, bringing the overall unemployment rate to 3.5% and cementing the case for another bigger rate hike from the Federal Reserve next month.

The CME Group’s FedWatch, in fact, pegs the odds of a fourth consecutive 75 basis point rate hike at just under 80%, with the bulk of bets pointing to a fed funds rate of between 4.5 % and 4.75% by the end of the year. .

The escalation halted a short-lived rally on Wall Street last week and also appears to be snagging stocks at the start of trading on Monday, as investors expect a busy week for economic data and earnings releases, as well. as minutes from the September Fed meeting on Wednesday.

The S&P 500, however, is still up 1.51% for the month, despite Friday’s selloff, although that compares to a 23.6% decline for the year, one of the worst performers of the main American reference for at least two decades.

Inflation and earnings will likely dictate the direction of the market later this week as investors look for any suggestion of easing consumer price pressures and their impact on corporate earnings as the latest months of the year.

Thursday’s September inflation reading, scheduled for 8:30 a.m. EST, is expected to show a moderation in the headline rate, but another modest acceleration in core consumer price pressures, a mix that is unlikely to do much to change the Fed’s rate hike path or its determination to maintain the rise well into the year ahead.

The data will follow the Fed’s October meeting minutes, to be released Wednesday afternoon, and the unofficial start of the third-quarter earnings season on Friday, with September quarterly updates from JPMorgan Chase. (JPM) Citigroup (VS) Wells Fargo (WFC) and Morgan Stanley (MRS) .

Collective S&P 500 earnings are expected to rise 4.1% from a year ago to $463.9 billion, according to Refinitiv data, led by gains in the energy and industrials sectors .

Ahead of Monday’s open, however, futures tied to the S&P 500 point to an opening bell gain of 12 points, while those tied to the Dow Jones Industrial Average, which is up 2% for the month, are rated for a 135 point lead. Contracts linked to the technology-focused Nasdaq point to a 26-point increase.

Overnight in Asia, Chinese markets reopened after that country’s traditional October holiday week, with tech stocks leading indices down sharply following a Biden administration move to tighten export rules. of semiconductor technologies.

The regional benchmark MSCI ex-Japan fell 1.95% in the final hours of trading, while the Nikkei 225 in Tokyo was down 0.71% after Friday’s close on Wall Street.

In Europe, the regional Stoxx 600 index rose 0.04% at midday in Frankfurt, with Britain’s FTSE 100 down 0.24% on increased bond buying by the Bank. of England while the pound drifted at 1.10 against the US Dollar.

Ford engine (F) Shares were a notable pre-market driver, falling nearly 4% after UBS analysts downgraded their rating and price target on the automaker, citing the risk of lower demand amid impending US recession.

You’re here (TSLA) stocks were also weaker and trailing declines in the technology sector, following data from China showing record sales in September.

The China Passenger Car Association (CPAC) said Tesla delivered 83,155 cars last month, an 8% increase from August that crushed the group’s previous record of just under 79,000 set in June. .

Apple (AAPL) shares were slightly higher, rising 0.14% on a report suggesting the tech giant was able to counter the trend of cooling demand for personal computers with strong MacBook shipments in the third trimester.

The widely watched survey from International Data Corporation showed global PC shipments fell 15% from a year ago to around 74.3 million units, driven by a 27.8% decline for HP Inc. (HPQ) . Apple, however, posted a 40.2% gain for the three months ending September, with shipments reaching just over 10,000 units of Mac personal computers.

Twitter (TWTR) shares, meanwhile, edged closer to the $54.20 level at which Tesla billionaire CEO Elon Musk is expected to buy the social media group later this month.

Questions remain, however, about the nature of the funding needed to reach the $44 billion price tag, with banks having to pay around $12.5 billion in loans and Musk himself having raised around $15.4 billion through the sale of Tesla shares.

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