Dow and Nasdaq move lower to start jobs report week as Powell was scheduled to speak

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• Mon Sep 30, 2024 8:45am MST

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  Nvidia shares fall on sales fears in China

  Nvidia ( NVDA ) stock fell about 1% in early trading after falling as much as 2.8% before the market opened. The drop follows a Bloomberg report Friday that Beijing is pushing Chinese companies to buy from chipmakers within its own borders — instead of Nvidia’s popular GPUs.

  Nvidia has been designing specialty chips for China since the US stepped up export controls on semiconductors to the country from late 2022. Nvidia is currently exporting a version of its Hopper chip called H20, which adheres to stricter trade regulations, to China. Nvidia is reportedly working on bringing a version of its latest Blackwell chips online for China as well.

  Analysts remain bullish on Nvidia despite trade tensions and historic volatility in the semiconductor sector. About 90% of Wall Street analysts recommend buying the stock and see the stock rising to $147.61 in the next year, according to Bloomberg consensus estimates.

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  Mon Sep 30, 2024 at 8:00am MST

  Investors are looking forward to signs of growth in the week of key economic data

  A slew of labor market data, led by the September jobs report, will be the focus for investors this week. Updates on activity in the services and manufacturing sectors will also draw attention as market participants try to discern how quickly the U.S. economy is slowing.

  Wall Street strategists argue that there is a clear understanding of what kind of data would support a further rally in stocks.

  Citi head of US equity trading strategy Stuart Kaiser told Yahoo Finance that a scenario in which the Fed doesn’t cut spending because the economy needs it is “hugely bullish” for stocks. Therefore, a stronger-than-expected jobs report would likely be seen as positive for the stock.

  The September jobs report is expected to add 130,000 nonfarm jobs to the U.S. economy, with the unemployment rate holding steady at 4.2%, according to Bloomberg data. In August, the U.S. economy added 142,000 jobs while the unemployment rate fell to 4.2%.

  “It’s all about the growth side of the economy and it’s all about the consumer,” Kaiser said. “Any data that suggests consumer spending is holding up and you’re not seeing the weakness that people are concerned about and that the Fed is concerned about, I think that’s all going to be positive for the stock markets.”

  Then, a bad jobs report on Friday could have the opposite effect on stocks.

  “If it turns out that they started cutting spending because they are rightly concerned about the weakness in the labor market, in that case interest rate cuts will not be enough to help stocks and you will trade lower,” Kaiser said. “So the why [the Fed is cutting] is important here. And the payroll administration will provide an answer to that.”

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  Mon Sep 30, 2024 7:15 AM MST

  Automakers are in decline as Stellantis cuts 2024 profit forecasts

  Shares of Stellantis ( STLA ) fell nearly 13% as the automaker cut its 2024 earnings forecast.

  Instead of positive cash flow for the year, Stellantis now expects negative cash flow in a range of $5.58 billion to $11.17 billion. The automaker said it also expects its adjusted operating profit margin to be between 5.5% and 7% this year, lower than the double-digit margins Stellantis initially forecast.

  “The deterioration in the global industrial backdrop reflects a lower market forecast for 2024 than at the beginning of the period, while competitive dynamics have intensified due to both rising industrial supply and increased Chinese competition,” Stellantis said in a press release.

  Ford (F) and GM (GM) also traded lower following the news.

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  Mon Sep 30, 2024 6:35am MST

  Stocks slide open, all eyes on Powell

  US stocks moved lower on Monday but were still poised for strong monthly and quarterly gains as investors waited to hear from Fed Chairman Jerome Powell ahead of the crucial monthly jobs report.

  The S&P 500 (^GSPC), the Nasdaq Composite (^IXIC) and the Dow Jones Industrial Average (^DJI) all fell about 0.2%.

  With few catalysts to start the week, Powell’s speech on Monday afternoon is expected to be critical.

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  Mon Sep 30, 2024 5:50am MST

  DirecTV to buy Dish Network

  A new media acquisition has been confirmed.

  Yahoo Finance’s Alexandra Canal reports:

  Satellite TV provider DirecTV (T, TPG) said Monday it will buy rival Dish Network (SATS), including Dish’s streaming brand Sling TV, in a debt swap transaction. Financial terms were not disclosed.

  The deal, which still needs to be approved by regulators, will create one of the largest pay-TV providers in the US.

  “The combination of DirecTV and Dish will benefit American video consumers by creating a more robust competitive edge in a video industry dominated by streaming services owned by big tech companies and programmers,” the companies said in a joint statement.

  Shares in EchoStar (SATS), owner of Dish Network, rose about 1% in premarket trading following the news. The stock was up nearly 10% on Friday after rumors of the takeover increased.