Schaeffer's 43rd Anniversary Stock Picks in 2024

Stock Futures See Sudden Halt to October Rally

The ADP jobs report for September beat expectations

Digital Content Manager
Oct 5, 2022 at 9:06 AM
facebook X logo linkedin

Stock futures are taking a breather from October's two-day rally, with Dow Jones Industrial Average (DJI) futures set for a 288-point drop. Futures on the Nasdaq-100 (NDX) and S&P 500 (SPX) sit deep in the red as well, as the latter comes off its best two-day gain since March 2020. Meanwhile, bond yields are back on the rise, though the 10-year Treasury yield still sits below last week's highs near 4%.

Wall Street is also unpacking the latest ADP jobs report, showing businesses added 208,000 jobs in September. The number topped estimates, and marked a rise from August's reading.

Continue reading for more on today's market, including:

  • It's time to bet on a downturn for Ross Stores stock. 
  • Options bulls came around to this surging biotech name
  • Plus, Musk puts TWTR deal back on the table; and 2 big names attracting bull notes.

futures oct 5 22

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.14 million call contracts and 733,697 put contracts traded on Tuesday. The single-session equity put/call ratio fell to 0.64, while the 21-day moving average stayed at 0.68.
  2. After months of drama and a lawsuit, Tesla (TSLA) CEO Elon Musk is once again proposing a Twitter Inc (NYSE:TWTR) takeover. Musk wants to buy TWTR for his original offer of $54.20 per share. In response, the social media stock is down 0.7% ahead of the bell. Year-to-date, however, TWTR has added 20.3%. 
  3. Bernstein initiated coverage of Airbnb Inc (NASDAQ:ABNB) with an "outperform" rating and a $143 price target today -- a nearly 30% premium from Tuesday's close. The stock was last seen up 0.6% in premarket trading, but remains down 33.4% in 2022.
  4. Morgan Stanley just hit Ford Motor Company (NYSE:F) with an upgrade, hiking its rating to "overweight" from "equal weight." The analyst noted a buying opportunity in the stock's recent dipFord Motor stock was last seen up 1.1%, though it has been struggling to mitigate a nasty 40.5% year-to-date deficit. 
  5. There's a lot on the docket today, including international trade balance data, the pending home sales index, S&P services PMI, and the ISM services index.


Euro Zone PMI Hits 20-Month Low 

Stocks in Asia popped once again Wednesday. Hong Kong’s Hang Seng added 5.9% on its return from a holiday, buoyed by tech and bank stocks. Meanwhile, Japan’s Nikkei rose 0.5%, and South Korea’s Kospi tacked on 0.3%, after the country’s consumer price index (CPI) showed inflation cooled in September. China’s Shanghai Composite, meanwhile, remained closed for the Golden Week holiday.

European markets are taking a step back today, after the euro zone’s composite purchasing managers’ index (PMI) hit a 20-month low for September. At last check, London’s FTSE 100 is down 1%, and France’s CAC 40 has lost 0.7%. In Germany, the DAX is 0.9% lower, after an Ifo Institute survey showed more companies plan to hike food, gas, and electricity prices.


A.I.’s Dirty Little Secret: The Real Power Behind The AI. Boom ✨

Anyone who’s seen the The Matrix movies knows that A.I. needs power.  Lots and lots of power.

If you’ve seen the movie, you also know the grizzly results of the ensuing battle for that power.

Now, Wall Street’s battle for A.I. power won’t go to such extremes. Hopefully?

A.I. needs more power and that means more opportunities for stock traders in the know.

Download your free copy of “The A.I. Revolution: 4 Stocks to Buy Now”!