The S&P 500 fell 1.0% this week, weighed down by a surge in bond yields, which rose to multi-year highs in front of Friday's release of the Employment Situation report for September. The tech-heavy Nasdaq and the small-cap Russell 2000 underperformed, losing 3.2% and 3.7%, respectively, but the blue-chip Dow finished flat.
Stocks began the week on a positive note, boosted by Canada joining Mexico and the United States in a trade agreement. when Italy's anti-establishment government defended its plan to increase the country's budget-deficit target despite pushback from the EU. However, on Wednesday, Italy's government decided to cede to some of the EU's budget demands. Italy's budget-deficit target will be reduced from 2.4% of GDP in 2019 to 2.2% in 2020 and then to 2.0% in 2021.
That news helped push bond yields higher overnight. Yields then extended those gains significantly after the September
In corporate news, General Electric (GE) replaced CEO John Flannery with former Danaher CEO Larry Culp; Tesla's (TSLA) CEO, Elon Musk, agreed to settle charges with the SEC, in which Mr. Musk and Tesla are to pay $20 million each, and Mr. Musk is to step down as chairman for three years; Amazon (AMZN) announced that it will be raising its minimum wage to $15 an hour for all U.S. employees, pressuring other retailers to do the same; and General Motors (GM) announced that it will be partnering with Honda Motor (HMC) to build autonomous vehicles.
Macro :
- Italy Says European Union Hasn’t Rejected Budget Plan
- Saudi Crown Prince Says He Loves Working With President Trump
- Italy Outlook Darkens as Politics Skews From Orthodox Thinking
Keep an eye on :
- ADP FP : Le Maire Says France to Have Final Say on ADP Principal Investor
- AED BB : Aedifica to Spend EU47m on Dutch Expansion at About 5.5% Yield
- AF FP : French Pilots’ Union Wants Court Assessment of Report on Crash
- AF FP : Air France SNPL Union Says Mgmt Offered 4% Pay Rise for 2018-19
- ATUS US : *GREENLIGHT ADDED ALTICE USA IN 3RD QUARTER: LETTER
- BKIA SM : Spain to Wait for Bankia Sale Until ‘Price Is Right’: HB
- BT/A LN : *GREENLIGHT'S EINHORN ADDS BT GROUP IN 3Q: LETTER
- DAI GY : Mercedes-Benz Starts Construction of U.S. Battery Factory
- EDF FP : De Rugy: Fessenheim Closure May Be Decoupled From Flamanville
- EIT IM : EI Towers: 97.4% of Shares Tendered in 2i Towers Public Offer
- FHZN SW : Flughafen Zurich Dividend Plan Not Yet Set for 2020: CEO in FuW
- GLOGB BB : Van der Schueren’s Congra Offers EU4.25/Shr for Global Graphics
- HMSO LN : Hammerson Sells 50% Stake in Highcross Mall for GBP236 Million
- IMMO BB : Immobel Sells EU100m 5-Year, 7-Year Notes in Retail Offering
- TIT IM : Telecom Italia CEO Genish Wants to Stay, Urges Unity: Repubblica
- TPZ SM : Telepizza to Face Disciplinary Proceedings by Regulator CNMV
- TGS NO : TGS Sentenced to Pay NOK90M Fine; Says It Will Appeal Verdict
- UBSG SW : UBS Accused of Bond Movie Tactics in Paris Tax-Dodging Trial
- UNA NA : Unilever Move a ‘Setback’ as Dutch Weigh Tax Plan, Hoekstra Says
- RIN FP : Vilmorin rumoured to be possible KWS Saat target