Coffee With Greta: Traders Extend Monday’s Relief Rally
DJIA Futures: +359 (+1.2%)
SPX Futures: +55 (+1.5%)
NASDAQ Futures: +203 (+1.8%)
Good morning friends!
Futures are up following Monday’s big relief rally.
Let’s get right to it!
Traders Look to Extend Rally
Stocks are set to rally at the open after surging on Monday.
The Dow Jones jumped 2.7% on Monday for its best day since June 24.
The S&P 500 rose 2.6%, its best day since July 27.
And the Nasdaq closed up 2.3%.
Many analysts expect volatility to continue in the weeks ahead as the Fed continues its aggressive campaign against inflation.
Treasury Yields Slide Further
Treasury yields are sliding again today as stocks rally.
The 2-year yield is down 5 basis points to 4.06% while the 10-year yield is down 4 basis points to 3.60%.
Yields seem to have hit a ceiling last week when the 10-year briefly topped 4% before retreating.
Sentiment across the market seems to be leaning toward a Fed pivot in the near future.
Several Fed officials will speak today and give more insight into whether that is an appropriate anticipation from the market.
Rivian On Pace for 2022 Production Goal
Rivian (RIVN) shares are up 7.4% after reporting Q3 production data on Monday.
The electric automaker said it produced 7,363 vehicles last quarter, its highest quarterly total yet.
The company delivered 6,584 vehicles to customers during the quarter.
Rivian confirmed it’s on track to produce 25,000 vehicles in 2022.
Year to date the automaker has produced 14,317 vehicles.
Poshmark Rallies On Takeover Deal
Poshmark (POSH) shares are rallying 13.5% in premarket trade after South Korean internet giant Naver announced it will buy the company for roughly $1.2 billion.
Naver will pay $17.90 per share for Poshmark.
The companies said this deal will widen Naver’s reach in online retail and allow Poshmark to expand to international markets.
Poshmark went public in January 2021 at $42 a share but has since tumbled alongside the rest of the tech sector.
Oil Prices Rise Ahead of OPEC+ Meeting
Oil prices are rising further ahead of Wednesday’s OPEC+ meeting.
West Texas Intermediate crude futures are up 1.9% to over $85 bbl while Brent crude futures are up 2.1% to just under $91 bbl.
OPEC+ is expected to cut output by more than 1 million barrels per day on Wednesday.
But the impact of that cut may not be that severe as the group has failed to meet its planned production increases in recent months.
Production fell short by 3.6 million bpd in August.
In Case You Missed It
- General Motors (GM) shares rose 2.4% after the automaker reported strong sales growth in Q3. GM sold 555,580 vehicles last quarter, up 24% year over year. That was higher than analysts’ expectations for growth of at least 21.6%. The company said it plans to increase production of its Chevrolet Bolt EV and EUV after selling 14,709 of the vehicles in Q3.