Stocks struggled for direction Monday, though the main indexes notched definitive gains for both the month and quarter. A mid-afternoon speech from Fed Chair Jerome Powell failed to lift sentiment, with all eyes now firmly set on the September jobs report, due at the end of the week.
During an appearance in Nashville, Powell said that the Fed sees its dual policy mandate – inflation and employment – as roughly balanced and feels the economy is in good shape.
He added that the central bank will continue to lower interest rates, but the pace and magnitude of those cuts will depend on the current economic data. For its November meeting, the Fed will take in the totality of the economic data – including the two jobs reports that will be released ahead of the event.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The next job report hits ahead of this Friday's open. Barclays economists think it will show that job growth accelerated a bit last month. "We expect a 150,000 increase in nonfarm payroll employment in September, slightly faster than August's 142,000 gain," the group writes. "On the household side, we look for the unemployment rate to remain at 4.2%."
Ahead of the payrolls data, futures traders are pricing in a 60% chance the central bank will cut rates by a quarter-percentage point in November, according to CME Group's FedWatch Tool. Odds that it'll be by a half-percentage point are currently at 40%.
Stellantis sinks on profit warning
In single-stock news, Stellantis (STLA) plummeted 12.6% after the automaker lowered its full-year operating margin amid deteriorating "global industry dynamics" and increased competition from China.
Ford Motor (F, -2.0%) and General Motors (GM, -3.5%) also declined on the news.
AT&T sells DirecTV stake
Elsewhere, AT&T (T, +0.5%) said it is selling its 70% stake in DirecTV to private equity firm TPG (TPG, -0.8%) for $7.6 billion. This will allow DirecTV to merge with fellow satellite TV provider Dish Network, which is currently owned by EchoStar (SATS, -11.5%). This news was confirmed in a separate announcement.
CVS jumps on activist investor news
CVS Health (CVS) stock popped after media reports indicated Glenview Capital took a position in the embattled pharmacy chain. The hedge fund met with leadership on Monday and could be pushing for changes, according to The Wall Street Journal.
Also on Monday, the company told employees that it is eliminating roughly 2,900 jobs as part of previously announced cost-cutting initiatives.
The healthcare stock jumped 2.4%, but remains 20% lower for the year to date.
Stocks end September with a win
Thanks to a late-day burst of buying power, the Dow Jones Industrial Average finished the session up 0.04% at 42,330, the S&P 500 was 0.4% higher at 5,762, and the Nasdaq Composite gained 0.4% to 18,189.
All three main benchmarks finished up on the historically tough month and ended Q3 back near record highs.
"While the third quarter was a volatile one, with the early August and the early September selloffs, stocks are ending the quarter with gains," says Emily Bowersock Hill, CEO and founding partner of Bowersock Capital Partners. "We expect the fourth quarter to be quite similar to the third quarter – elevated volatility, but with a strong finish."
Related content
- Is Investing In Gold Worth It? How Gold Prices Have Changed
- What Is the Rule of 72 and How Is It Used in Investing?
- How to Spot a Bubble in Stocks
-
How to Rank Your Financial PrioritiesCircumstances are different for everyone, but this adviser with 20-plus years of experience shares some insights on getting your financial priorities in order.
-
Can You Define Baby Boomers? Look at Trump and HarrisTrump and Harris are bookends of the sprawling Baby Boomer generation, which spans 18 years. No wonder they have different world views.
-
How to Rank Your Financial Priorities
Circumstances are different for everyone, but this adviser with 20-plus years of experience shares some insights on getting your financial priorities in order.
-
Medicare or Medicare Advantage: Which Is Right for You?From overall costs to availability of care, here's what to know about the differences between traditional Medicare and Medicare Advantage plans.
-
Wealth Is More Than Just Your Money: How to Manage It AllIn addition to handling your financial wealth, consider ways to manage your non-financial assets: health, knowledge, time and relationships.
-
Stock Market Today: Stocks Hit Fresh Highs on Bank Earnings, Econ NewsStrong corporate profits and benign economic data once again sent equities to record levels.
-
You're 60 Years Old With $1 Million Saved: Can You Retire?The answer depends on several factors. The key is to create a plan that combines all aspects of retirement — income, taxes, health care and legacy planning.
-
Are You a Danger When You Drive?You might be shaking your head no, but read on for the five things that most of us have at some point done, or are doing, that could cause an accident.
-
Stock Market Today: Markets Slip on Hot Inflation Print, Layoff NewsEconomic data continues to complicate expectations for Federal Reserve rate cuts.
-
CPI Report Points to Gradual Pace for Rate Cuts: What the Experts Are SayingCPI Inflation surprised to the upside last month but the disinflation trend remains on track.
