The S&P 500 Index ($SPX) (SPY) is up by +0.44% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down by -0.13%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.63%. December E-mini S&P futures (ESZ26) are up +0.41%, and December E-mini Nasdaq futures (NQZ26) are up +0.60%.
Stock indexes are mostly higher today, with the S&P 500 posting a 1.5-week high. M&A activity is supportive of stocks today after Schneider Electric agreed to buy PTC Inc. for $22.6 billion, and C.H. Robinson Worldwide agreed to purchase RXO for $5.8 billion. Also, today’s -1% decline in WTI crude oil has lowered inflation expectations and improved market sentiment, boosting stocks. In addition, strength in the Magnificent Seven technology stocks is supporting the overall market.
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Limiting stock gains today are signs of price pressures in the US services sector that are lifting bond yields and are hawkish for Fed policy. The 10-year T-note yield is up +4 bp to 5.31% after the Sep ISM services prices paid sub-index rose more than expected to a 4-year high.
The US Sep ISM services index fell -0.5 to 54.9, slightly weaker than expectations of 55.0. The Sep ISM services prices paid sub-index rose +1.4 to a 4-year high of 74.0, stronger than expectations of 73.3.
Nov WTI crude oil prices (CLX26) are down more than -1% and are under pressure today after Saudi Aramco lowered the price of its Arab Light crude to Asian buyers by $5 a barrel below a regional benchmark for November delivery, a wider cut than expectations of $2 a barrel. Crude prices also fell after Saudi Arabia said crude supplies through its East-West pipeline had risen to 80% of capacity as of Saturday.
Markets are discounting a 22% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are higher today. The Euro Stoxx 50 is up +0.05%. China's Shanghai Composite did not trade, with markets in China closed for the week-long Golden Week holidays. Japan's Nikkei-225 Stock Average rallied to a 3-month high and closed up +2.40%.
Interest Rates
December 10-year T-notes (ZNZ6) are down -6 ticks. The 10-year T-note yield is up +4.3 bp to 5.313%. T-notes are under pressure today on signs of price pressures in the US services sector that are hawkish for Fed policy after the Sep ISM services prices paid sub-index rose more than expected to a 4-year high. Also, supply pressures are weighing on T-notes as the Treasury will auction $119 billion in T-notes and T-bonds this week, beginning with Tuesday’s $58 billion auction of 3-year T-notes. Losses in T-notes are limited as today’s -1% decline in WTI crude oil prices has eased inflation expectations.
European government bond yields are moving higher today. The 10-year German bund yield is up +2.4 bp to 3.486%. The 10-year UK gilt yield is up +5.0 bp to 5.416%.
Eurozone Aug PPI rose +8.2% y/y, stronger than expectations of +7.6% y/y and the largest increase in 3.5 years.
The Eurozone Oct Sentix investor confidence index fell by -2.4 to 2.7, weaker than expectations of 4.2.
ECB Chief Economist Philip Lane said a measured ECB response is appropriate to control inflation as policymakers assess how a second wave of energy shocks affects the economy.
The UK Sep S&P services PMI was revised upward by +0.4 to 52.1 from the previously reported 51.7.
Markets are discounting an 11% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
The Magnificent Seven technology stocks are mostly higher today, a positive factor for the overall market. Meta Platforms (META) is up more than +2%, and Microsoft (MSFT) is up more than +1% to lead gainers in the Dow Jones industrials. Also, Tesla (TSLA) and Nvidia (NVDA) are up more than +1%, and Alphabet (GOOGL) is up +0.31%, and Amazon.com (AMZN) is up 0.03%. Conversely, Apple (AAPL) is down -0.06%.
Software stocks are climbing today, a positive factor for the overall market. Autodesk (ADSK) and Atlassian Corp (TEAM) are up more than +4%, and Oracle (ORCL) and Cadence Design Systems (CDNS) are up more than +1%.
PTC Inc (PTC) is up more than +34% to lead gainers in the S&P 500 after Schneider Electric agreed to buy the company for $22.6 billion, or about $205 per share in an all-cash deal.
RXO Inc (RXO) is up more than +21% after C.H. Robinson Worldwide agreed to buy the company for $5.8 billion, or about $30.25 per share.
Cerebras Systems (CBRS) is up more than 10% after OpenAI CEO Altman said the company is “a close partner” of OpenAI.
Harley-Davidson (HOG) is up more than +7% after Citigroup upgraded the stock to buy from neutral with a price target of $33.
C.H. Robinson Worldwide (CHRW) is down more than -13% to lead losers in the S&P 500 after agreeing to purchase RXO for $5.8 billion.
Insmed (INSM) is down more than -7% after announcing that CFO Bonstein will step down, effective October 30.
Lennar (LEN) is down more than -4% after a report from Hunterbrook Media said that “Millrose Properties bought an estimated $200 million of Lennar homes in about a month and is renting them out for what appears to be a loss.”
Group 1 Automotive (GPI) is down more than -3% after Morgan Stanley downgraded the stock to underweight from equal weight with a price target of $232.
Nike (NKE) is down more than -2% after S&P Global Ratings downgraded the company’s long-term debt rating to A from A+.
Earnings Reports (10/5/2026)
BRT Apartments Corp (BRT).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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