Stock Market News: October 3, 2019
U.S. stock futures were in the green Thursday morning in a least temporary bid to recover from some of the steep losses of the past two sessions.
Here were the main features of the pre-market session, from 07:50 am. ET:
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S&P 500 futures (ES = F): + 0.1%, or 2.75 points
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Dow futures (YM = F): + 0.07%, or 18 points
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Nasdaq futures (NQ = F): + 0.18%, or 13.25 points
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US crude oil prices (CL = F): + 0.15% to $ 52.72 per barrel
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10-year government rate (^ TNX ): -2.2 bps to 1.575%
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Gold (GC = F): + 0.19% to $ 1,510.70 per ounce
<p class = "canvas-atom canvas-text Mb (1.0em ) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" The S & P 500 fell & nbsp; 2.99% from the beginning of the month to the end of Wednesday and marked the worst two-day start to an October since 2008. They came when investors saw financial data that showed & nbsp; deteriorating US manufacturing activity & nbsp; and & nbsp; slowing job growth with geopolitical risks including protests in Hong Kong, the chaos surrounding Brexit and US-China trade tensions threaten to weigh further on enlargement. "data-reactid =" 20 "> The S&P 500 fell 2.99% from the beginning of the month through Wednesday's close, marking the worst two-day start to an October since 2008. They came when investors saw financial data showing worsening US manufacturing activity and slowing job growth, with geopolitical risks including protests in Hong Kong, the chaos surrounding Brexit and US-China trade tensions that threaten to weigh further on enlargement.
The focus will turn to the Institute of Supply Management (ISM) non-production index on Thursday at 10 AM ET, which will serve as a litmus test for whether the economic downturn that is now evident in some US data has also spilled out into the service sector.
This area of the economy makes up a much larger portion of total US economic activity, with the softness of services likely to have a more pronounced effect on important consumer spending. Throughout the year, the ISM service-centric index has remained largely unchanged, even as the production counterpart slid into a confluent territory.
A trader is working on the floor of the New York Stock Exchange just after the closing clock in New York, USA, October 2, 2019. REUTERS / Lucas Jackson
Consensus economists expect the ISM's non-manufacturing index to have slashed to 55.0 in September from 56.4 in August, comfortably above the neutral level 50 required to indicate expansion.
"If we get something around it, the market's attention will simply shift to tomorrow's labor market report, but it is possible that the eq uity nerves have been relieved somewhat and the market is pushing back the survey we have seen this week with the implied probability of a rate cut at the end of this month, "Kit Juckes, global leader of FX strategy at Société Generale, wrote in a note Thursday morning.
<p class =" canvas-atom canvas text Mb (1.0em) Mb ( 0) – sm Mt (0.8em) – sm "type =" text "content =" In the midst of a bevy of financial worries, efforts by the US central bank increased significantly after a third meeting this year. & nbsp; According to CME Group data, & nbsp; Markets priced in more than 75% probability of another quarterly cut at the end of the Fed meeting in October, almost doubled the probability seen earlier this week. Since the beginning of the month, the US 10-year return has gone from a high of 1.7548% on Tuesday to below 1.6%. "Data-reactid =" 36 "> Amid a host of financial worries, the US central bank is betting on rates and cutting interest rates after a third meeting this year increased significantly. According to CME Group's data, markets priced at more than 75% likelihood of another quarterly cut at the end of the Fed's October meeting, almost doubling the likelihood seen earlier this week, since the beginning of the month the US 10-year yield has gone from a high of 1.7548% on Tuesday to below 1.6%.
