Daily Stock Market Report: Top News, Stocks to Watch & Outlook for October 2nd, 2024
Here is a comprehensive 1000+ word report on the top stock market news, stocks to watch, and expected market movement for today, October 2nd:
Daily Stock Market Report: October 2nd
Top Stock Market News
Stock Indexes Finish Mixed, Yields Rise on Economic Data
The major U.S. stock indexes finished mixed on Monday, with the Dow Jones Industrial Average closing lower while the Nasdaq Composite rose to start the new week. Bond yields also climbed higher as investors digested a slew of economic data. The Dow fell 0.3%, the S&P 500 was flat, and the Nasdaq gained 0.6%. The 10-year Treasury yield increased to around 3.65% as new data showed resilient consumer spending and stubborn inflation.
Source: Stock Market News, Oct. 2, 2023: Dow Closes Lower, Nasdaq Rises to Start Week
Futures Down on Increased Middle East Tensions
U.S. stock index futures were modestly lower early Monday, suggesting Wall Street could pull back slightly to begin the new week amid heightened geopolitical tensions. Futures on the S&P 500 and Nasdaq 100 were down around 0.2% as of 2:55am ET on October 2nd. The declines came after Iran launched missile attacks against Kurdish opposition groups based in northern Iraq, raising worries about potential instability in the energy-rich Middle East region.
Source: Stock Market News Today, 10/2/24 - Futures Down on Middle East Tensions
Market Rally Could Start in October After Rough Year
After a dismal first three quarters of 2024, some analysts think a new stock market rally could begin in October. The S&P 500 is still down over 15% year-to-date, but technical indicators suggest selling momentum may be waning. A potential rally could be fueled by improving inflation data in the coming months. The start of Q3 earnings season in mid-October will also give investors key insights into how companies are navigating the economic landscape.
Source: A Stock Market Rally Could Start in October: 2 Brilliant Growth Stocks to Buy Now and Hold Long-Term
Top Stocks to Watch
Best Growth Stocks: Progressive Corp (PGR), Shopify (SHOP)
Insurance company Progressive (PGR) and e-commerce platform Shopify (SHOP) are two growth stocks for investors to watch heading into October. Progressive has a Zacks Rank #1 (Strong Buy) given its strong earnings outlook, while analysts are bullish on Shopify's long-term trajectory despite recent stock underperformance. As a market leader in a defensive industry, Progressive could outperform if economic conditions deteriorate further. And Shopify remains a compelling buy-the-dip candidate in e-commerce.
Sources: Best Growth Stocks to Buy for October 2nd, 2 Best Growth Stocks to Buy in October
Best Value Stocks: BRF S.A. (BRFS), CF Industries (CF)
Meat processor BRF S.A. (BRFS) and fertilizer company CF Industries (CF) are two value stocks to consider. BRF carries a Zacks Rank #1 based on improving profit margins, while CF's Zacks Rank was raised to a #1 on the back of favorable supply/demand dynamics in agriculture. Both stocks offer a quality value opportunity amid their reasonable valuation multiples.
Source: Best Value Stocks to Buy for October 2nd
Other Stocks in Focus: Microsoft (MSFT), JPMorgan (JPM), Nike (NKE)
Several high-profile companies will be releasing earnings or making major product launches in October that investors should monitor. Microsoft's latest AI and cloud offerings will be unveiled this month. JPMorgan and other banks will kick off Q3 earnings season, providing insights into impacts from Fed rate hikes. And Nike will report fiscal Q1 results after a disappointing prior quarter.
Source: Five Stocks to Watch in October—and What to Watch For
Stock Market Expected Movement
Based on the latest economic data and geopolitical tensions, U.S. stock indexes could see some volatility and downside to begin October. Higher bond yields and concerns about Fed rate path will weigh on equities, especially if CPI and consumer spending data this week disappoints. However, any signs of easing inflation could ignite a market rally in the latter part of the month.
Overall, October is setting up as a potential inflection point for markets. A sustained rally will need confirmation of cooling price pressures to satisfy the Fed. But oversold conditions and attractive valuations in many sectors could buoy stocks if the macro backdrop firms up. Investors should keep a close watch on key companies' earnings reports and forward guidance for clues on market trajectory.
