Newscasts - Trading at Noon: Middle East turmoil eclipses positive data
03/10/2024 16:54
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_wq2ooni1&referenceId=1_wq2ooni1&pageId=Newscasts Source: 'Reuters - Business videos' Description: Wall Street's main indexes were weighed lower on Thursday, as traders weighed the prospect of escalating conflict in the Middle East. The benchmark S&P 500 pared losses, after services activity expanded at the fastest pace since February 2023. Short Link: https://refini.tv/3ZV00XT Video Transcript: US stocks falter as Wall Street struggles to shrug off rough October starts. Welcome to Trading at Noon. I'm Peter Devlin. Caution prevailed for US stocks on Thursday as markets continue to weigh the prospect of escalating Middle East conflicts. The CBOE Volatility Index, Wall Street's fear gauge, hovered at more than three-week highs. Well, Treasury yields, and the Dollar rose to session highs after strong than expected data. So, taking a cultural look at those figures and US services sector activity expanded in September at the fastest pace since February 2023. The ISM's index of services jumped to 54.9 in September from 51.5 previously, boosted by strong growth in new orders. The latest figures adding to suggestions that the economy remained on a solid footing in the third quarter. While US jobless claims rose marginally last week, holding at levels consistent with limited numbers of layoffs, initial jobless claims are increased by 6,000 to 225,000 higher than the forecasted 220,000. While continuing claims the proxy for the number of people receiving benefits was little changed at 1.83 million in the prior week. The next day, the hurdle for market comes tomorrow with the release of the highly anticipated employment reports. Analysts polled by Reuters expect non-farm payrolls to increase by 140,000 in September after rising by 142,000 last month. So, with the Fed's easing cycle firmly dependent on the labor markets. One analyst sees potential volatility ahead. That sensitivity likely has increased after the last Fed meeting, when the Fed explicitly said that they worry about softness in the job market. So, if we are going to see weak job data on Friday in the non-farm payrolls, that will likely trigger another kind of rout in markets, and more rate cuts being priced in. While in corporate news, Tesla is reportedly embarking on an ambitious effort to design four new versions of its in-house battery. The information reported that Tesla is pushing ahead with new plans to power the Cybertruck, its forthcoming robotaxi, and other electric vehicles. So, this does mark the most battery projects the automaker has worked on simultaneously. And Constellation Brands beat second quarter results estimates on robust demand for its popular beer brands. The Corona beer maker saw persistent demand for its major revenue driver, offsetting a slump in its wine, and spirits business. But investors were disappointed as the company maintained its annual sales, and profit forecasts. Overall, sending shares lower. Finally, oil prices continue to surge as President Joe Biden said his strike on Iran's oil facilities is under discussion. Any disruption to supplies could drive oil prices much higher, keeping markets on edge. Well, that is Trading at Noon