Dow Jones futures fell modestly early Monday along with those of the S&P 500 futures and Nasdaq, signaling a retreat on the stock market today after the major indexes rebounded last week. The 10-year Treasury yield moved above the 4% level.
Apple (AAPL), Netflix (NFLX) and Pfizer (PFE) moved on news while investors await the Tesla (TSLA) robotaxi day. Chinese stocks such as Alibaba (BABA) and PDD Holdings (PDD) continued to rise.
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Dow Jones futures fell 0.3% vs. fair value. S&P 500 futures sank 0.3%. Nasdaq 100 futures retreated 0.4%.
The 10-year Treasury yield rose to 4.02%, topping the 4% level for the first time in months. That’s after spiking 23 basis points last week to 3.98%. Treasury yields jumped after Friday’s strong jobs report and other recent economic data removed fears about further weakness in labor markets.
Crude oil prices rose more than 1%, though off premarket highs. Oil futures surged 9.1% to $74.38 a barrel last week. Middle East tensions and another hurricane in the Gulf of Mexico are pushing up futures.
Remember that premarket action in Dow futures and elsewhere on the stock market today doesn’t necessarily translate into actual trading in the next regular session.
Stock Market Last Week
The Dow Jones Industrial Average edged up 0.1% in last week’s stock market trading, setting a record close Friday. The S&P 500 index advanced 0.2%, just below an all-time high.
The Nasdaq composite rose 0.2%, back above the 18,000. And small caps on the Russell 2000 fell 0.5%, but rebounded from the 50-day line and back above the 21-day line.
Apple iPhone Expectations ‘Too High’
Jefferies analyst Edison Lee reinstated Apple stock coverage at neutral with a 212.92 price target.
“Near-term expectations for iPhone 16 and 17 are too high. A lack of material new features and limited AI (artificial intelligence) capabilities mean high market expectations (5%-10% unit growth) are unlikely to be met,” Lee said in a note to clients.
Apple stock fell 0.7%, right around its 21-day moving average but still above its 50-day line. The Dow Jones component has a handle buy point of 233.09.
Stock Market Today: Netflix Gets Mixed Reviews
Barclays analyst Kannan Venkateshwar downgraded Netflix to underweight from equal weight, saying its “present valuation appears out of sync with probable growth path.” He left the Netflix stock price target at $550.
Meanwhile, Piper Sandler Matt Farrell upgraded Netflix to overweight, raising its price target to 800 from 650.
Netflix stock fell 0.5%, still holding in a buy zone from a cup base. The official buy point of 697.49 was first cleared on Aug. 20.
Starboard Takes $1 Billion Pfizer Stock Stake
Activist investor Starboard Value has taken a $1 billion stake in Pfizer (PFE) and has asked for help from two former top executives at the drugmaker, including former Chief Executive Ian Reid. Starboard is pushing for changes at Pfizer, which has struggled since Covid vaccine demand waned.
Pfizer rose more than 3% early on the stock market today. Shares fell last week but rebounded Friday near their 20-day line. Pfizer stock has a 31.54 buy point, according to MarketSurge.
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China Stocks Add To Gains
Hong Kong’s Hang Seng Index rose 1.6% Monday, continuing a massive run from late September amid rate cuts and moves to bolster banks and ease property purchase rules. Now attention is turning to possible fiscal stimulus.
The National Development and Reform Commission is scheduled announce stimulus measures Tuesday morning local time. The question is whether those stimulus measures will live up to investor expectations.
The Shanghai exchange, closed for five trading days for national holidays, will reopen Tuesday.
Alibaba stock rose another 2.3% early Monday after the e-commerce giant spiked to an 18-month high over the past two weeks.
PDD stock climbed a fraction, working toward a 164.69 buy point. But the parent of the Pinduoduo and Temu e-commerce sites has run up from near the bottom of a 47%-deep consolidation after crashing in late August following second-quarter earnings.
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Stock Market Today: Tesla Robotaxi Event
A Tesla event is set to take place Thursday night, with many unknowns. Tesla is expected to show off a robotaxi, while the Optimus robot and what the company calls an upcoming “affordable” vehicle may make an appearance.
Tesla edged higher early on the stock market today.
Shares slid 4% last week to 250.08, after Tesla deliveries missed whisper numbers. But shares rebounded Friday from near the 21-day line. Tesla stock now has a handle on a weekly chart, giving it a 264.86 cup-with-handle buy point.
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