Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Stock market news: October 7, 2019

Stock market news: October 7, 2019

Stocks opened lower across all three of the major indices ahead of the high-level trade negotiations between the U.S. and China set for later this week.

Here were the main market moves, as of 10:30 a.m. ET:

- S&P 500 (^GSPC): -0.24%, or 7 points

- Dow (^DJI): -0.30%, or 80.36 points

- Nasdaq (^IXIC): -0.10%, or 7.65 points

- Crude oil (CL=F): +1.40% to $53.55 per barrel

- Gold (GC=F): -0.36% to $1,507.50 per ounce

Trade delegations from both the U.S. and China are scheduled to meet in Washington on Thursday. However, senior Chinese officials have recently signaled reluctance to work toward President Donald Trump’s broad trade deal, according to Bloomberg News. Chinese Vice Premier Liu He is expected to lead the Chinese trade delegation in Washington this week, and he is reportedly planning to take one of Trump’s key demands off of the table. According to reports, Liu plans to bring a trade offer to the U.S. that excludes commitments on reforming Chinese industrial policy or government subsidies.

Though the Trump administration has vehemently denied claims that the impeachment inquiry into the president has affected the trade negotiations, many speculate that the drama in Washington has given the Chinese an upper hand in the trade war.

As recent economic data pointed to a weakening economy, investors will be paying close attention to the trade developments and the Federal Open Market Committee’s (FOMC) September meeting minutes. Market participants will be looking for further clues on the Fed’s monetary policy path. Fed Chair Jay Powell is scheduled to speak on two separate occasions this week. On Tuesday, Powell will be in Denver, Colorado at the The 61st National Association for Business Economics (NABE) Annual Meeting. He will be discussing “Data Dependence in an Evolving Economy.” Wednesday, Powell will be at the Fed Listens: A Community Listening Session in Kansas City, Missouri.

Following the worrisome manufacturing data and weaker-than-expected jobs report last week, many economists are anticipating that the Fed will cut rates at its meeting at the end of this month and possibly one more time in December. Boston Fed President Eric Rosengren told Yahoo Finance that he thinks the Fed is pretty close to fulfilling its dual mandate on inflation and unemployment, and thus does not necessarily see a case for a rate cut at this time. Rosengren previously dissented both of the Fed’s decision to cut rates earlier this year.

STOCKS: General Electric freezes pension plan for employees; General Motors strike enters fourth week
General Electric (GE) shares rose Monday after the industrial giant said it would freeze pension plans for about 20,000 employees in a cost-cutting measure. GE has been sitting on a massive debt pile, and the move to freeze pensions will reduce the company’s pension deficit by about $5 billion to $8 billion. The embattled company also plans to freeze supplementary pension benefits for about 700 U.S. employees. The freeze will go into effect January 1, 2021. GE shares have been struggling over the past several years. The stock has fallen 29% in the past year and 62% in the past two years.

Talks between General Motors (GM) and the United Auto Worker’s Union (UAW) took a turn for the worse over the weekend, according to Terry Dittes, UAW Vice President in charge of the GM department. The UAW made an offer to GM on Saturday that covered wages, signing bonuses, job security and profit sharing. GM provided a counteroffer, which the UAW turned down. Since the strike began on September 16, analysts estimate that it has cost GM about $1 billion. The two sides have been meeting daily to reach an agreement. Though the strike did not affect September’s payroll figures, economists have noted that the strike most likely negatively affected the manufacturing data released last week.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
×