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Stock futures edge lower to kick off final session of a strong month and quarter: Live updates

Traders work on the floor of the NYSE. 
NYSE

U.S. stock futures ticked down leading up to the final trading session of what's shaping up to be a winning month and quarter.

Futures tied to the Dow Jones Industrial Average lost 61 points, or 0.1%. S&P 500 futures and Nasdaq 100 futures inched down 0.3% and 0.4%, respectively.

Those moves come after the major averages notched their third consecutive week of gains. Monday marks the final trading day for September and the third quarter, which are both on track to conclude with gains despite some pain points.

Markets had a rough start to what is historically the weakest month for the stock market, but rebounded as September went on with the Federal Reserve cutting interest rates by a super-sized half point. Month to date, the Dow and the S&P 500 are now up 1.8% and 1.6%, respectively. The tech-heavy Nasdaq has advanced 2.3% in September.

The Dow has led the way this quarter, climbing more than 8%. The S&P 500 and Nasdaq have added more than 5% and 2%, respectively, since July began.

Looking ahead, October has a troubling history for markets. It's known as a time of extreme volatility with some of the more notable Wall Street drawdowns occurring during the month.

Still, investors are excited about equities into the final stretch of the year after their rallies thus far. Canaccord Genuity analyst Michael Welch noted that the fourth quarter is typically the strongest and ends positively in more than three out of every four years.

"The market navigated the typically challenging September better than we anticipated," Welch said. "Now, as we enter a stronger seasonal period, coupled with the start of a Fed easing cycle and favorable technical conditions — we expect these will provide a tailwind into the end of the year."

"We believe now is not the time to fight the Fed or the tape," he added. Instead, "it is an opportunity to position for a potential fourth-quarter rally, especially on any pullback."

Jeep parent Stellantis drops on profit warning

Stellantis shares dropped more than 12% in the premarket after the Jeep parent warned of lower-than-expected sales "across most regions" for the second half. General Motors and Ford fell 3.3% and 2.9%, respectively, in sympathy.

— Fred Imbert

Chinese stocks post their biggest one-day rally since 2008

Chinese stocks rallied overnight, with the mainland CSI 300 index posting its biggest one-day rally since 2008. The benchmark popped 8.5% for its ninth straight day of gains. The surge came after the release of better than-expected manufacturing data for September.

U.S.-traded ETFs jumped following the rally. The iShares China Large-Cap ETF (FXI) traded 2.5% higher in the premarket. The iShares MSCI China ETF (MCHI) also rose 3.5%.

— Fred Imbert

Consumer discretionary outperforms September

Consumer discretionary is on pace as the S&P 500's best-performing sector in September, having climbed 7.3% higher for the month.

Las Vegas Sands' 31.1% rise is pulled the sector higher, followed by Wynn Resorts and Tesla up around 27% and 22%, respectively.

Utilities is the following highest-gaining sector with a rise of around 6%.

Meanwhile, financials, health care and energy are all in the red for the month.

— Hakyung Kim

Stock futures inch lower Sunday

U.S. stock futures ticked down Sunday night.

Futures tied to the Dow Jones Industrial Average fell 43 points. S&P 500 futures were lower by about 0.16% and Nasdaq 100 futures dropped 0.2%.

— Hakyung Kim

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