1. U.S. stock future rise Friday morning, with the S&P 500 climbing 0.7%, even as equities are on track to end down for both September and the third quarter. But the end of a bad September has 12 out of 13 times bred a good October, sometimes very good.
2. Bond yields pull back slightly, with that of the 10-year Treasury hovering above 4.5%. Oil prices rise more than 1%, with West Texas Intermediate Crude just under $93 a barrel. Meanwhile, a looming government shutdown could slow the economy and actually help the inflation picture.
3. Nike‘s (NKE) quarterly revenue falls short of Wall Street’s expectations for the first time in two years, but it beats on earnings and gross-margin estimates, sending the stock soaring by nearly 10% in premarket trading. Inventories are way down. It’s business in China proves to be okay. And it looks like clear sailing to the Paris Olympics next summer.
4. In an odd call, Barclays lowers its price target on beer maker Constellation Brands (STZ) to $294 a share, from $295, while maintaining an overweight rating on the stock. Don’t sell this Club name ahead of the upcoming analyst conference call on Oct. 5.
5. Morgan Stanley raises its price target on cybersecurity firm Zscaler (ZS) to $155 a share, from $145, while reiterating an equal-weight rating on the stock. The Club prefers Palo Alto Networks (PANW).
6. The sell side can’t resist talking positively about Tesla (TSLA), and this time it’s Canaccord. The firm says demand appears relatively healthy for the electric-vehicle maker, despite a “wobbly” auto market and some price cuts this quarter.
7. Manufacturing company Jabil (JBL) delivers an earnings beat, boosting the stock. Barclays raises its price target to $144 a share, from $134, while maintaining an overweight rating on shares. Jabil is one of Club name Apple‘s (AAPL) suppliers.
8. Bank of America lowers its price target on Accenture (ACN) to $341 a share, from $350, while maintaining a buy rating on the stock. The firm cites “somewhat soft [fiscal year 2024] guidance and cautious demand commentary.” But it has always paid to buy the dip here, as this company is helping you to digitize.
9. Baird lowers its price target on used-vehicle retailer CarMax (KMX) to $88 a share, from $96, while reiterating an outperform rating on the stock. This is the beginning of the weakness of the lower-end consumer.
10. Bank of America lowers its price target on United Parcel Service (UPS) to $167 a share, from $177, while maintaining a neutral rating on the stock. The call comes after the bank hosted a sell-side breakfast at the New York Stock Exchange with UPS executives. CEO Carol Tome reportedly outlined a challenging backdrop, especially in the small-package market.
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