(Bloomberg) -- Strong evidence of a cooling US labor market rippled through Wall Street, spurring a rally in bonds as traders boosted their bets the Federal Reserve will cut interest rates in December. The dollar fell. Stocks wavered.
With the scarcity of data caused by the federal shutdown, investors have turned to private readings such as the Challenger, Gray & Christmas Inc. report showing companies announced the most job cuts for any October in over 20 years. Following the numbers, money markets now imply an about 60% chance of a quarter-point rate reduction next month.
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"We are sticking to our view that the Fed will deliver a follow-up 25 basis-point cut in December because restrictive Fed policy can worsen the already fragile employment backdrop and upside risk to inflation are not materializing," said Elias Haddad at Brown Brothers Harriman & Co.
Traders are also keeping a close eye on a slate of policymakers slated to speak on Thursday. Fed Bank of Chicago President Austan Goolsbee told CNBC that a lack of inflation data during the shutdown makes him more uneasy about continuing rate cuts.
The US central bank last month lowered rates for a second straight meeting in an effort to bolster the labor market. But inflation, which at 3% in September remained well above the Fed's 2% target, has also raised concerns among some officials that it will take longer to come down than they thought.
The S&P 500 was little changed. The yield on 10-year Treasuries slid five basis points to 4.10%. A dollar gauge fell 0.2%.
Read: Revelio Labs Says US Lost 9,100 Nonfarm Jobs in October
Corporate Highlights:
Qualcomm Inc., the largest maker of smartphone processors, became the latest chipmaker to deliver an upbeat forecast and still leave investors underwhelmed.
- Arm Holdings Plc, which provides the most widely used technology in computing processors, gave a bullish revenue forecast, helped by increasing interest in designing chips to run AI data centers.
DoorDash Inc., the US food-delivery app leader, said it will spend more on investments next year to build new products and bolster internal tools, weighing on its earnings forecast. - Peloton Interactive Inc. issued a voluntary recall on about 833,000 units of its high-end Bike+ model in the US following reports that some seat posts broke, causing users to fall off.
- Lyft Inc. projected an acceleration in bookings this quarter, easing concerns about the ridehailing company's efforts to expand globally and maintain customer loyalty.
- Lucid Group Inc. posted a worse-than-expected third-quarter loss as it grapples with sluggish production of its Gravity SUV and a challenging trade environment.
- Walt Disney Co. signed a new multiyear deal to make DraftKings Inc. the official betting site and odds provider for its ESPN sports networks, replacing a venture it had with casino operator Penn Entertainment Inc.
- Warner Bros. Discovery Inc., the parent of HBO and CNN, reported third-quarter revenue that missed analysts' expectations, providing a glimpse into the company's businesses as it puts itself up for sale.
- SoftBank Group Corp. explored a potential takeover of US chipmaker Marvell Technology Inc. earlier this year, people familiar with the matter said, in what would have been the semiconductor industry's largest-ever deal.
- ConocoPhillips raised its total spending plans for the Willow oil and natural gas project in Alaska to as much as $9 billion, citing inflation and other rising costs.
- Under Armour Inc. said sales might fall as much as 5% this fiscal year, a bigger decline than Wall Street estimated and raising concern that the sportswear company's turnaround effort isn't making enough progress.
- Moderna Inc. posted a narrower third-quarter loss than Wall Street expected, a sign that its cost-cutting measures are helping offset the decline of its Covid business.
- A new weight-loss drug from Eli Lilly & Co. helped patients shed as much weight as popular shots like Zepbound, giving the company another edge in the fast-growing obesity market.
- Krispy Kreme Inc. generated positive cash from operations in the third quarter for the first time in three quarters — and its highest since late 2022 — as the doughnut maker progressed with its turnaround plan following the end of its US McDonald's partnership in June.
- Aquarian Holdings agreed to buy insurer and annuity provider Brighthouse Financial Inc. for $4.1 billion in cash.
- Snap Inc. announced a $400 million partnership with Perplexity AI Inc. to incorporate its AI-powered search engine into Snapchat.
- Charles Schwab Corp. agreed to buy Forge Global Holdings Inc., a marketplace for buying and selling shares of private companies, for about $660 million.
- CarMax Inc. dropped after terminating William D. Nash as chief executive, following a nosedive of the used-car retailer's market value so far this year.
- EchoStar Corp. reported a $16.5 billion impairment charge and agreed to sell more spectrum licenses to Elon Musk's SpaceX for $2.6 billion as it works to unwind parts of its 5G wireless buildout.
- Tapestry Inc. raised its fiscal full-year outlook after quarterly earnings beat expectations, with the company's Coach brand fueling sales growth despite a more cautious shopper.
- United Parks & Resorts Inc.'s third-quarter revenue missed estimates, as weather disruptions and softer discretionary spending weighed on attendance.
- Deutsche Boerse AG and Nasdaq Inc. risk hefty European Union fines after the bloc's antitrust watchdog opened a full-scale investigation into a suspected cartel linked to listing, trading and clearing of derivatives.
- Commerzbank AG plans to sell significant risk transfers worth €5 billion ($5.8 billion) in the fourth quarter as the German lender seeks to free up capital.
- HelloFresh SE sank after short seller Grizzly Research LLC published a report that claimed the German subscription meals company's management is "seemingly prioritizing self-enrichment at shareholders' expense."
- Air France-KLM reported earnings that missed expectations, hurt by strikes and higher taxes.
- Worldline SA announced a €500 million ($576 million) capital raise to strengthen its balance sheet and give its turnaround plans breathing space.
- AstraZeneca Plc's profit rose more than analysts anticipated last quarter, buoyed by demand for its blockbuster cancer and diabetes drugs.
- Diageo Plc lowered its full-year outlook for sales and profit as weak demand in China and the US weigh on the British distiller.
- A.P. Moller-Maersk A/S shares fell with investor disappointment over a smaller-than-expected improvement in the container-shipping giant's full-year profit guidance.
- Volvo Car AB is seeking a long-term operating return of 8%, helped by new electric models like the EX60 sport utility vehicle and deeper ties with parent Geely.
- Nissan Motor Co. promised to build on a better second quarter despite longer-term forecasts signaling persistent challenges for the carmaker's efforts to turn around its worst financial crisis in decades.
Some of the main moves in markets:
Stocks
The S&P 500 fell 0.1% as of 9:31 a.m. New York time
- The Nasdaq 100 fell 0.3%
- The Dow Jones Industrial Average was little changed
- The Stoxx Europe 600 fell 0.3%
- The MSCI World Index was little changed
Currencies
- The Bloomberg Dollar Spot Index fell 0.2%
- The euro rose 0.3% to $1.1530
- The British pound rose 0.3% to $1.3092
- The Japanese yen rose 0.4% to 153.54 per dollar
Cryptocurrencies
- Bitcoin fell 0.9% to $102,738.39
- Ether fell 2.6% to $3,352.75
Bonds
- The yield on 10-year Treasuries declined five basis points to 4.10%
- Germany's 10-year yield declined one basis point to 2.66%
- Britain's 10-year yield declined three basis points to 4.43%
- The yield on 2-year Treasuries declined five basis points to 3.58%
- The yield on 30-year Treasuries declined four basis points to 4.70%
Commodities
- West Texas Intermediate crude fell 0.6% to $59.23 a barrel
- Spot gold rose 0.4% to $3,993.84 an ounce
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