U.S. stock futures were higher Thursday morning after falling in the regular trading session and breaking a massive two-day rally. Dow Jones Industrial Average futures rose by 118 points, or 0.39%. S&P 500 and Nasdaq 100 futures climbed 0.43% and 0.55%, respectively. Stocks fought to hold onto the winning streak Wednesday but ultimately fell short. The Dow closed about 42 points lower, or 0.14%, rebounding from the session’s low of nearly 430 points. The S&P 500 and the Nasdaq Composite slid 0.20% and 0.25%, respectively. Rising yields added pressure to stocks Wednesday. The rate on the 10-year U.S. Treasury topped 3.7%, rising from 3.6% a day earlier. “Few are convinced that the recent move is more than a bear market rally, with skepticism over the durability,” said Mark Hackett, chief of investment research at Nationwide. “Confidence remains weak, ranging from CEOs, small businesses, consumers, and investors. Universal pessimism is bullish from a contrarian perspective, though timing of the pendulum swing is difficult to predict.” Investors continue to monitor economic data to see if inflation is cooling off, or if the Federal Reserve’s rate hikes are pushing the U.S. closer to a recession. Data from ADP showed that the labor market remained strong among private companies in September, when businesses added 208,000 jobs. That beat the 200,000 job estimate from Dow Jones. On Friday, the September jobs report from the Bureau of Labor Statistics will be released, giving the central bank and investors another piece of data. Some companies are reporting earnings, as well. On Thursday, Constellation Brands will announce its results before the opening bell, and Levi Strauss will report after the market closes. Mizuho says OPEC+ supply cut confirms ‘naked desire for price buoyancy’OPEC and its allies’ decision to cut production by 2 million barrels per day confirms the group’s “naked desire for price buoyancy, not just support,” said Vishnu Varathan, head of economics and strategy at Mizuho Bank. A supply cut of around 1 million barrels per day would have resulted in price gains without a compromise on volumes, but a larger cut shows the alliance’s “disregard for the economic woes of, and geo-political alignment with, global partners,” he wrote. “What may have been argued as an opportunistic gamble exploiting geo-political supply kinks for self-interest advantage is now in danger of being interpreted as an affront to the U.S. and its allies (in protestation of Russia price cap plans) that aligns with Russia,” he added. — Abigail Ng CNBC Pro: Time to buy the dip? Some stocks are still trading at lows with further big upsideThe beginning of this week has brought something of a relief rally to stocks. Still, global as well as Wall Street indexes, are still well in the red year-to-date. That could present an opportunity for investors looking for quality stocks and future upside in a volatile environment. CNBC Pro screened for stocks trading within 10% of their 52-week low, but have a buy rating from more than 50% of Wall Street analysts that cover them. The stocks have an average price target upside of 20% or more, and earnings growth expectation for 2022 of at least 10%. Here are the stocks that turned up. CNBC Pro subscribers can read more here. — Weizhen Tan CNBC Pro: NYU’s Aswath Damodaran names big tech stocks that are a better bet than ‘traditional safe’ onesNYU’s Aswath Damodaran loves companies that can “withstand a hurricane, a catastrophe if it does happen.” The professor of finance at New York University, who is sometimes referred to as the “Dean of Valuation, believes big tech stocks can do just that, and reveals the stocks he owns. Pro subscribers can read more here. — Zavier Ong October could be the start of a bull market rally, Detrick saysEven though stocks pulled back Wednesday, stopping a major two-day win streak, October may still be the start of a new bull market rally according to Ryan Detrick, chief market strategist at Carson Group. “We think this could be the start of a pretty decent-sized end of year rally,” Detrick said during CNBC’s “Closing Bell: Overtime.” That’s because, traditionally, stock performance improves in October in midterm election years, said Detrick. He also noted that even though markets ended the day lower, stocks posted a major rally in the afternoon that regained a lot of lost ground. That’s a positive, according to Detrick. —Carmen Reinicke Stock futures open flat WednesdayStock futures opened flat Wednesday evening after all three major averages closed lower, failing to continue a major two-day rally that started this week. Dow Jones Industrial Average futures rose by 7 points, or 0.03%. S&P 500 and Nasdaq 100 futures climbed 0.02% and 0.03%, respectively. – Carmen Reinicke from https://digitalarkansasnews.com/stock-futures-rise-on-thursday-after-two-day-market-rally-ends/
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