Dow, S&P 500, Nasdaq slip as investors rethink rate cut bets

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• Mon, October 7, 2024 at 10:24 AM EDT

  ‘Mag 7’ stocks mixed as Nvidia rises 1%, Amazon falls 2%

  Nvidia (NVDA) and Amazon (AMZN), two of the ‘Magnificent Seven’ stocks were moving in opposite direction on Monday.

  Chip heavyweight Nvidia rose more than 1% to trade above $126 per share.

  E-commerce and cloud giant Amazon fell more than 2% after Wells Fargo downgraded the stock to Equal-weight from Overweight amid the expectation that advertising revenue will moderate.

  Cloud unit “AWS strength alone is not enough,” wrote Wells Fargo analyst Ken Gawrelski.

  

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  Mon, October 7, 2024 at 9:30 AM EDT

  Stocks open lower as 10-year Treasury yield tops 4%

  The major averages opened lower on Monday as the 10-year Treasury yield (^TNX) rose back above 4%.

  The Dow Jones Industrial Average (^DJI) fell about 0.3% after notching a fresh record high on Friday. The S&P 500 (^GSPC) shed roughly 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) fell 0.5%.

  The yield on the benchmark 10-year Treasury (^TNX) hit 4% for the first time since August, as hopes of another 50 basis point rate cut from the Federal Reserve faded after a stronger-than-expected September jobs report.

  Oil prices extended gains on Monday following their biggest weekly increase in more than a year as markets awaited an Israeli retaliation against Iran over its missile barrage last week.

  West Texas Intermediate crude futures (CL=F) advanced more than 1% to trade above $75 per barrel, after gaining more than 9% last week. Brent futures (BZ=F), the international benchmark, also advanced more than 1% to trade above $79 per barrel.

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  Mon, October 7, 2024 at 8:38 AM EDT

  Pfizer stock jumps on reports of Starboard taking $1 billion stake

  Pfizer (PFE) stock rose 2.6% premarket Monday as investors reacted to multiple media reports that activist investor Starboard Value has taken a $1 billion stake in the pharmaceutical giant.

  Starboard has approached Pfizer executives Ian Read and Frank D’Amelio about helping turn the tides at the drugmaker, various media outlets reported, citing unnamed sources. Pfizer, the manufacturer of the world’s first-approved COVID-19 vaccine, has struggled to maintain its dominance post-pandemic. Read and D’Amelio expressed interest in assisting Starboard, The Wall Street Journal reported. Starboard’s plans and the changes it would make at Pfizer are unclear.

  The stock’s moves early Monday morning will bring it into the positive for the year, but shares are far below record highs of nearly $60 in 2022.

  Pfizer is set to report earnings on Oct. 29. Wall Street analysts expect the company to report revenues of $14.8 billion, up about 12% from the prior year. Only half of analysts covering the stock recommend buying it, according to Bloomberg data.