5 things to know before the market opens on Monday, October 18 – .

5 things to know before the market opens on Monday, October 18 – .

Here are the most important news, trends and analysis investors need to start their trading day:

1. Wall Street is expected to start the week down after Friday’s rally

Traders work on the floor of the New York Stock Exchange (NYSE) on October 15, 2021 in New York City.
Spencer Platt | Getty Images
Dow futures fell 100 points on Monday ahead of a busy week for corporate earnings amid rising US oil prices and rising bond yields. The Dow Jones Industrial Average, S&P 500 and Nasdaq rallied on Friday and throughout last week.

  • The Dow Jones was within 1% of its record-high August 16 close. The S&P 500 was close to 1.5% of its all-time September 2 close. The Nasdaq was 3.1% from its record close on September 7.
  • The revenue stream takes a hiatus on Monday but resumes on Tuesday with reports from Netflix, Johnson & Johnson, United Airlines and Procter & Gamble.
  • So far, 41 S&P 500 companies have released third quarter results, 80% of which are exceeding EPS expectations, according to FactSet data.
  • Taking into account those already released and estimates for the rest, third-quarter profit growth would reach 30%, the third highest quarterly profit growth rate for companies in the S&P 500 since 2010, according to FactSet.

2. WTI exceeds $ 83 per barrel; bond yields rise

Oil prices in the United States, as measured by West Texas Intermediate crude, jumped 1%, topping $ 83 per barrel, their highest level since October 2014. Behind the rise, demand continues to recover as that business activity depressed by Covid resumes and the natural level is high. gas and coal prices encourage a switch to fuel oil and diesel for power generation. WTI was already up three straight sessions and surged 3.7% last week for its eighth consecutive positive week, the best weekly winning streak in May 2015.

The 10-year Treasury yield started the week rising to 1.62%. Before breaking above those levels earlier this month, the last time it hit such a high was in June. The 10-year yield, which moves inversely to price, was inflated on Friday after data showed US retail sales rose 0.7% in September, from an expected drop of 0 , 2%. Industrial production figures for September are released at 9:15 am ET, with estimates calling for a 0.2% increase after a 0.4% jump in August.

3. Chinese GDP disappoints, third quarter growth slows to 4.9%

Many factories had to stop production at the end of September because soaring coal prices and a shortage of electricity prompted local authorities to abruptly cut off electricity. The struggles of developer giant China Evergrande came to the fore in August. Real estate and related industries account for around a quarter of China’s GDP, according to Moody’s estimates.

4. Bitcoin Rises To All-Time Highs On Bitcoin ETF Optimism

Bitcoin on display.

Chesnot | Getty Images

Bitcoin approached all-time highs in April near $ 65,000, rising about 1.5% on Monday to over $ 61,000. The world’s largest digital currency hit a six-month high above $ 60,000 on Friday. Traders are optimistic the SEC won’t oppose the first bitcoin futures exchange-traded fund, which would start trading on Tuesday unless regulators step in. industry. After April’s record high, bitcoin, known for its volatility, collapsed and even traded below $ 29,000 in June before recovering.

5. Apple will probably finish transforming its MacBook lineup

MacBook Air 2020 with M1 chip

Todd Haselton | CNBC

Apple is hosting a launch event on Monday to announce new products, possibly including a redesigned MacBook Pro. The company has a chance to continue developing its Macs ahead of the holiday season, especially as it is expected to announce more computers running on its own chips instead of Intel processors. Last month, Apple announced and then released new iPhones, iPads, and Apple Watches, leaving Macs as the main product line that hasn’t been updated this fall. Apple is also expected to provide a release date for macOS Monterey, the latest version of Mac software, which was announced in June but has yet to be officially released.

– Reuters contributed to this report. Follow all the market action like a pro on CNBC Pro. Get the latest pandemic news with CNBC’s coronavirus coverage.


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