Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Wall Street Opens Higher as Bond Yields Tumble; Tesla Weighs; Dow Up 290 Pts

Stock Markets Oct 03, 2022 09:39AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
US500
-0.12%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
+0.10%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
IXIC
-0.18%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CVX
-0.80%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
XOM
-0.85%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
OXY
-0.86%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Geoffrey Smith 

Investing.com -- U.S. stock markets opened higher on Monday amid growing expectations that the slowdown visible in the U.S. and world economies will force the Federal Reserve to stop raising U.S. interest rates.

Those hopes have driven a sharp rally (juiced by short-covering) in government bonds over the last week, driving benchmark Treasury yields down all along the yield curve. By the open, the 10-year Treasury yield was at 3.68%, down another 12 basis points from Friday's close and down 34 basis points from last week's peak. The 2-year yield, more sensitive to expectations of Fed action, was flat from Friday at 4.12%, but still down nearly a quarter-point from its peak.

Fresh signs of a U.S. slowdown gave an ex-post validation to the move, as the Institute for Supply Management confirmed that manufacturing activity expanded at the slowest rate in nearly two and a half years in September. The ISM's purchasing managers index fell by more than expected to 50.9 from 52.8 in August, with declines in all of the major subindices - new orders, employment and prices paid.

By 09:35 ET (13:35 GMT), the Dow Jones Industrial Average was up 290 points, or 1.0%, at 29,015 points. The S&P 500 was up 0.8% and the Nasdaq Composite was up 0.4%.

The Nasdaq was underperforming after some disappointing news from Tesla (NASDAQ:TSLA), which said its third quarter deliveries were around 4% below consensus forecasts, despite rebounding to a new record of nearly 344,000. CEO Elon Musk lamented the problems of getting sufficient transportation capacity to meet the company's usual surge in shipments at the end of the quarter. The shortfall makes it less likely that Tesla will meet its stated target of increasing production by 50% this year.

Tesla stock gapped down 7.4% to its lowest since mid-July.

Going in the other direction was Viasat (NASDAQ:VSAT) stock, which soared 21% after agreeing to sell its Link 16 Tactical Data Links (TDL) business to L3Harris Technologies (NYSE:LHX) for $1.96 billion. The sale is expected to result in cash proceeds to Viasat of approximately $1.8 billion net after estimated taxes, fees, and other expenses. L3Harris stock rose 2.0%.

Elsewhere, oil and gas stocks were lifted by reports suggesting that OPEC and its allies will slash output from November in an effort to shore up prices as demand weakens. Exxon Mobil (NYSE:XOM) stock rose 3.5%, Occidental (NYSE:OXY) stock rose 4.5%, and Chevron (NYSE:CVX) stock rose 4.2%.

The biggest gainer in the oil and gas space was, however, Petróleo Brasileiro Petrobras (NYSE:PBR), which rose 11.1% after the first round of voting in Brazil's presidential election resulted in a far stronger performance than expected by incumbent Jair Bolsonaro. That prevented his leftist opponent Luiz Inácio Lula da Silva from winning an outright majority in the first round which some feared may have been taken as a mandate to renew the milking of Petrobras by government cronies that happened under Lula's last term in office.

Wall Street Opens Higher as Bond Yields Tumble; Tesla Weighs; Dow Up 290 Pts
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (16)
Matt Kay
Matt Kay Oct 03, 2022 3:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
DOW up how much? you mean 3% for no reason? Yeah this stonk market totally not a lottery, no sir!
SquadW Name
SquadW Oct 03, 2022 2:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
tomorrow big crash 4 october = 4 ukrainian regions and russia start war official with ukraine
Victor Castillo
Victor Castillo Oct 03, 2022 2:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lol. Economy weakening -buy equities lmao
Don Vo
Don Vo Oct 03, 2022 12:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Short sell Tesla win big
Don Vo
Don Vo Oct 03, 2022 12:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Wall Street should expect Tesla deliveres up to 1 million car on each quarter so Tesla’s stock drop down to a dollar per share
Robin Hood
RobinHdJr Oct 03, 2022 12:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Raising interest rates can and will curtail consumer discretionary spending - - however that is not what is driving inflation right now. The primary component of inflation is energy prices - - gasoline and natural gas hikes - - and that is mostly due to Russian influence.  If you want to curtail energy prices, need to either reopen Keystone XL pipeline, or issue more offshore drilling permits, or some other factor to increase supply and drive down energy prices. Democrats will NOT do that.  Therefore there will be a downward spiral as FED attempts to curtail gas prices with interest rate hikes - - which doesn't work.  Its not like people are going to suddenly walk everywhere - - gasoline is a necessity, not a discretionary purchase
Show previous replies (13)
Ronald Warren
Ronald Warren Oct 03, 2022 12:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I guess you weren't paying attention to Biden's actions. While the Keystone was under construction, the Canadian oil was being trucked across the U.S. After Biden shut down the Keystone a week later he eliminated the trucking of the oil.
Ronald Warren
Ronald Warren Oct 03, 2022 12:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I guess you weren't paying attention to Biden's actions. While the Keystone was under construction, the Canadian oil was being trucked across the U.S. After Biden shut down the Keystone a week later he eliminated the trucking of the oil.
Ronald Warren
Ronald Warren Oct 03, 2022 12:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I guess you weren't paying attention to Biden's actions. While the Keystone was under construction, the Canadian oil was being trucked across the U.S. After Biden shut down the Keystone a week later he eliminated the trucking of the oil.
First Last
First Last Oct 03, 2022 12:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ronald Warren   You've confused pipeline with trucking.
Matt Kay
Matt Kay Oct 03, 2022 12:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Inflation is driven by money supply, friend. And we have 9 trillion printed on fed balance sheets. Not to mention 2.4 trillion in reverse repo ops.
Chad Richer Than You
Chad Richer Than You Oct 03, 2022 11:57AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
As Tesla retails sell the dip
Fahadull Islam
Fahadull Islam Oct 03, 2022 11:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hello how are you
عبده محمد
عبده محمد Oct 03, 2022 11:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Casino Crypt
CasinoCrypt Oct 03, 2022 11:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yes Black Rock and Treasury Yellen saw the market cliff edge and the consequences of the DJ  staying below 29000 and started buying. They know that below 28000 financial chaos awaits as testified by the recent pension fund alarms -  ringing in the UK . The next 10 years will be a sideways market as they hope for 'soft landing'.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email