Beat the Street: ADP; Treasury yields rally; volatility ahead of NFP; Intel; Meta
US stocks are indicated higher after September ADP data. Investors still cautious ahead of NFP and rising Treasury yields. Intel's programmable chip unit to operate as a standalone business, and is Meta reducing its staff?
(Video Transcript Summary)
Treasury yields give investors the jitters
In this episode of Beat the Street, Angeline Ong provides a quick rundown of what's happening in the market right now. She starts off by mentioning that investors are being cautious because Treasury yields have been on the rise.
This has caused a spike in volatility, which means that prices of stocks and other investments are swinging up and down a lot. She points out that the Volatility Index (VIX) has hit a five-month high, which is something to keep an eye on.
Intel set for IPO for chip unit
Intel is planning to spin off its programmable chip unit and have an initial public offering (IPO). This means that Intel will create a separate company just for this aspect of their business. ADP private payrolls growth, which slowed down a lot in September, could be seen as a sign that the Federal Reserve (Fed) won't be raising interest rates anytime soon.
The ousting of speaker Kevin McCarthy by some Republicans in the House of Representatives is causing concern among investors. Tech stocks like Microsoft, Meta and Tesla are not doing so well right now.
Tech stock battling
Meta is laying off staff in its custom silicon unit. On a different topic, there might be changes coming to how we use social media, with Meta considering charging users in Europe for ad-free subscription plans on Instagram and Facebook.
Some stocks to watch include Microsoft, Amazon and Eli Lilly. Ofcom, a regulatory authority in the UK, is pushing for an investigation into Amazon and Microsoft's dominance in the cloud computing market there.
In the oil market, prices have fallen after Saudi Arabia and Russia pledged to continue cutting oil production. The upcoming OPEC+ meeting, which will include key oil-producing countries, will discusses factors like tight supply, China's reopening and the winter months ahead that could affect oil prices.
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