3 M falls on JPM downgrade, Merck up on COVID - 19 pills - threeM.
4 Oct Reuters - US stock indexes were set to open lower on Monday as most big technology stocks were pressured by an uptick in Treasury yields, while Tesla shares rose after reporting a record number of electric vehicle deliveries.
U.S. Treasury yields have been supported by recent data showing increasing consumer spending, accelerated factory activity and elevated inflation growth, fueling bets that the Federal Reserve could start tightening its accommodative monetary policy sooner than expected
In premarket trading, the high-growth companies including Apple Inc, Microsoft Corp, Alphabet Inc and Amazon.com Inc fell between 0.2% and 0.9%.
In the rising rate environment, historically, you've been in the cyclical value and cyclical stocks relative to tech. That's not to say tech will collapse, but just to say that the cyclicals should do better in coming months, said Thomas Hayes, managing member of Great Hill Capital LLC in New York.
Markets are really focused on Washington and the uncertainty that they will be unable to come to an agreement on infrastructure bill, social spending plan and raising the debt limit. Wall Street’s main indexes were hit in September, hit by worries about the U.S. debt ceiling, the fate of a massive infrastructure spending bill and the meltdown of heavy indebted China Evergrande Group.
Trading shares of Evergrande were halted on Monday, unsettling markets about any fallout from its troubles even as media reports said the company would sell a stake in its property management unit for over $5 billion.
Markets also awaited U.S. president Donald Trump's new China trade strategy after the new program with U.S. Trade Representative Katherine Tai scheduled for new talks with Beijing later in the day over its failure to keep promise made in a Phase 1 trade deal struck with former President Joe Biden.
ET and Dow e-minis were down 86 points, or 0.25%, S&P 500 e-minis were down 13.25 points, or 0.31%, and Nasdaq 100 e-minis were down 63.25 points, or 0.43%.
Tesla Inc rose 2.5% after it had delivered a record number of electric cars in the third quarter, surpassing Wall Street's estimates on Saturday.
Merck Co added 3.5%, building on gains from Friday after developing an experimental antiviral pill that could halve the chances of dying or being hospitalized for those most at risk of contracting severe COVID - 19.
Shares in 3 M Co fell 1.5% after J.P. Morgan cut its rating on the industrial conglomerate's stock to neutral from overweight The first trial of four large pharmacy chains over the deadly U.S. opioid epidemic was set to begin on Monday, pressuring shares of Walgreens Boots Alliance Inc, CVS Health Corp and Walmart Inc. between 0.1% and 0.6%.