U.S. stocks were mixed on Tuesday. The September ADP report on hiring at U.S. companies provided a small boost to the market. The report showed better-than-expected job gains alongside cooling wage growth.
Below is the usual monthly financial performance table for some major assets/asset classes.
September saw positive returns for most, with Chinese stocks outperforming. (These stocks made substantial gains in the month's final days in reaction to the authorities' actual and… pic.twitter.com/bIXpNbCb93— Mohamed A. El-Erian (@elerianm) October 1, 2024
A more comprehensive view of the labor market will be available on Friday. The government will release its September employment report. It will include key snapshots of nonfarm payrolls, the nation’s jobless rate, and wage inflation.
Spread between S&P 500 earnings yield and 10y Treasury yield is hovering right near zero .. up off recent lows but still low relative to average over past decade pic.twitter.com/oO8XOXNHHo
— Liz Ann Sonders (@LizAnnSonders) October 3, 2024
Oil prices rose but remained off session highs. Market participants are monitoring ongoing tensions in the Middle East. This is particularly after a missile attack by Iran on Israel.
Since WWII, average volatility for U.S. stocks in October is 34% above average for other 11 months of year per CFRA
@Bloomberg pic.twitter.com/IbhLZE2RHS— Liz Ann Sonders (@LizAnnSonders) October 3, 2024
This has created a temporary inverse linkage between oil prices and stock market performance. Semiconductor stocks emerged as a bright spot. Broadcom, a prominent name in the sector, was one of the better-performing stocks in the S&P 500.
DEUTSCHE: “.. If markets are correct, then September likely marks the point where a gradual easing cycle turns into a consistently more aggressive one, with many more cuts priced in across numerous countries going forward.” pic.twitter.com/aK9Vg4hduZ
— Carl Quintanilla (@carlquintanilla) October 2, 2024
Jensen Huang, CEO of Nvidia, is scheduled to discuss a new partnership with Accenture. This collaboration aims to expand enterprise AI adoption.
Stocks mixed amid labor report
A Financial Times report indicated that Amazon plans to increase ads on Prime Video. This could potentially boost its high-margin digital advertising business. Apple stock turned positive despite analysts trimming their estimates for the iPhone 16.
JPMorgan noted that the launch lacked early momentum for higher-end models. According to a survey by JPMorgan analysts, Apple Intelligence is only the sixth top reason customers are purchasing the new iPhone. Faster device speed and 5G connectivity ranked higher.
It’s widely believed that Apple Intelligence features will gain traction through word-of-mouth from early adopters. Looking ahead, Levi Strauss will report earnings after Wednesday’s closing bell. CEO Michelle Gass is set to appear on “Mad Money” with Jim Cramer.
Constellation Brands will deliver its quarterly results before Thursday’s open. Analysts expect the company to reiterate its recently lowered full-year outlook. Of particular interest are beer sales trends among popular brands Modelo, Corona, and Pacifico.
Management’s plans for its struggling wine and spirits business are also of interest. Thursday morning’s reports will include weekly jobless claims, durable goods orders, and ISM services data. For more insights and stock updates, subscribers to the Investing Club with Jim Cramer receive actionable afternoon updates and trade alerts.
