MARKET SNAPSHOT

U.S. stocks fell ahead of earnings from a number of big companies. Treasury yields were higher as traders continued to sell off U.S. government debt following last week's stronger-than-forecast jobs data. The dollar and gold were largely unchanged. Oil futures rose on increasing risk of an Israeli response to the recent Iranian missile attack.

MARKET WRAPS

EQUITIES

Major indexes slipped to start the week, reversing course after a blockbuster jobs report sent stocks higher Friday.

The Nasdaq Composite slid 1.2%, the Dow Jones Industrial Average dropped 0.9%, and the S&P 500 lost 1%.

With a new week underway, third-quarter earnings season is coming into view. Among the first big-name companies to report will be soda-and-snacks heavyweight PepsiCo on Tuesday. Earnings season will pick up pace Friday with reports from JPMorgan, Wells Fargo and others.

Earlier Monday, China indexes were closed for the National Day holiday.

Hong Kong shares ended higher, with the Hang Seng Index rising 1.6%. Investors are waiting for more policy support from China as it returns from a week-long holiday on Tuesday.

Japan's Nikkei Stock Average rose 1.8%, tracking Wall Street's gains on Friday.

Australia's S&P/ASX 200 closed 0.7% higher, helped by big gains in lithium stocks. Banking stocks were solid performers.

New Zealand's NZX-50 closed 0.2% lower, weighed by losses in industrials, communication services and a major healthcare stock.

COMMODITIES

Oil futures climbed by nearly 4%, with global Brent prices topping $80 a barrel and settling at their highest since late August, as the risk of an Israeli response to last week's Iranian missile strike intensified.

December Brent crude, the global benchmark, rose 3.7% to settle at $80.93 a barrel. Prices for the front month settled at their highest since Aug. 26. West Texas Intermediate crude November delivery rose 3.7% to settle at $77.14 a barrel -- also the highest finish since late August.

Tensions between Israel and Iran following Iran's missile attack on Israel last week, and reports that Israeli Prime Minister Benjamin Netanyahu was meeting with his military advisers, have kept oil traders on guard for oil-price spikes, said Phil Flynn, senior market analyst at the Price Futures Group.

Front-month Comex October gold lost 0.04% to $2644.80 -- down for five of the past seven sessions.

TODAY'S TOP HEADLINES

Housing sentiment jumps to highest level in over two years, Fannie Mae says

In the housing market, it seems like what goes down must come up.

Housing sentiment has improved significantly, with a record share of consumers optimistic about mortgage rates falling over the next 12 months, a new survey by Fannie Mae found.

But an increasing share are also expecting home prices to increase.

U.S. credit-card debt declines for second time in past three months, signaling plateau in borrowing

The numbers: Consumer credit rose $8.9 billion in August, after surging a revised $26.6 billion in July, the Federal Reserve said Monday.

The August gain translates into credit growth at a 2.1% annual rate, down from a 6.3% rise in the prior month.

Economists had been expecting a $13.2 billion increase in consumer credit in August, according to a Wall Street Journal survey.

China's Stock Surge Could Fizzle Soon. Here's What to Look For.

Chinese stocks have shot up more than 35% in under three weeks after Beijing took coordinated steps to stabilize its economy in mid-September. But to sustain gains, investors now need China's government to deliver more details on its plans for revitalization.China's market was closed this past week for the country's Golden Week holidays, with trading resuming on Monday. Investors are waiting to see if Beijing's vows to encourage consumers to spend more during the holiday period come true-and spark more changes as they return.

Despite the market's sharp moves, fund managers and economists are skeptical Beijing can stop the economic doom loop that has set in. One concern: The measures China's government is talking about, among them significant stimulus spending, may not do much to tackle the growing list of structural challenges that are impeding the country's longer-term growth prospects.

But even those worried about the next phase of China's growth note the batch of efforts mark a change. "It's a signal that we have been waiting for that they understand the economy is at a knife's edge, and the deflation issue has hit the upper echelon of the Communist Party and they understand deflation can lead to a negative cycle," said Mary Lovely, a senior fellow at the Peterson Institute for International Economics in an online briefing held by the Centers for Strategic and International Studies on Friday.Beijing has created mechanisms to support the stock market, further lower interest rates and how much banks need to hold in reserves, and reduce rates on existing mortgages. The government also plans to recapitalize the country's six largest banks to nudge them out of capital-preservation mode-but details are yet to come.

Google Must Make It Easier for App Stores to Compete on Android, Judge Rules

A judge ordered Google to make it easier for developers of mobile app stores to compete on phones and tablets that use the company's Android software, a blow to the search giant as it navigates numerous legal threats.

The injunction issued Monday by U.S. District Judge James Donato is the result of Google losing an antitrust case-brought by "Fortnite" developer Epic Games-during a jury trial last December. Epic, which operates its own app store, argued that Google used its power over Android to take excess profits from app developers through its Play Store. Google has said it plans to appeal the ruling.

Donato ordered Google to allow third parties to access the company's Play Store catalog of apps to build competing offerings. He also barred Google from paying incentives to app developers to release an app first or exclusively on the Play Store, as well as to device manufacturers to pre-install the Play Store in a specific location or not pre-install a competing app store.

Activist Starboard Value Takes $1 Billion Stake in Pfizer

Activist investor Starboard Value has taken a roughly $1 billion stake in Pfizer and wants the struggling drugmaker to make changes to turn its performance around, according to people familiar with the matter.

Pfizer had a market value of about $162 billion as of Friday. Its shares have been roughly cut in half from a record high notched in late 2021 after the company delivered the world's first Covid-19 vaccine. They are little changed so far this year, compared with a 21% rise in the S&P 500.

Expected Major Events for Tuesday

00:00/AUS: Oct Westpac - Melbourne Institute Consumer Sentiment Survey

00:30/AUS: Sep ANZ-Indeed Job Ads

00:30/AUS: Sep NAB Business Survey

01:00/PHI: Aug Labour Force Survey

04:30/JPN: Sep Corporate Insolvencies

05:00/JPN: Sep Economy Watchers Survey

05:30/AUS: Sep Official Reserve Assets

08:00/TAI: Sep Price Indexes: Consumer Prices $(CPI.UK)$

08:00/TAI: Sep Merchandise trade

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This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

October 07, 2024 16:50 ET (20:50 GMT)

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