Markets in 5Tuesday, November 3
Stocks slip as oil falls and tech weakens
Stocks slipped as oil fell on Iran talk hopes, Treasury yields eased, and Apple and Palantir shares dropped after results.
Stocks
S&P 500 slips to lowest close since July
The S&P 500 fell 0.51% to 7,541.40 on Monday, its third straight loss and its lowest close since July 31. The index finished 3.55% below its record close of 7,818.93 set on October 6. The Nasdaq-100 fell 1.39% and entered a technical correction, down 10% from its peak, as the Dow rose 0.4%.
Rates
Treasury yields dip as oil prices fall
The 10-year Treasury yield closed at 4.91% on Monday, down 3 basis points from 4.94% on October 30, according to Treasury par yield data. The 2-year yield ended at 4.59%, leaving the 2s10s spread at 32 basis points. Yields on Treasurys fell after oil dropped sharply on renewed diplomatic efforts between the US and Iran.
Commodities
Oil falls sharply on US-Iran peace talk hopes
Oil futures posted their biggest one-day percentage decline since July on Monday as renewed diplomatic efforts toward direct US-Iran peace talks removed risk premium from prices, according to the Wall Street Journal. Gold jumped the most in two months, with the move attributed to the same peace-deal hopes and easing anxiety about accelerating inflation. Energy stocks were among the day's weakest, with Occidental down 5.13% and Exxon Mobil down 4.05%.
Earnings
Apple and Palantir shares fall after results
Apple reported revenue above expectations after the close, but iPad sales came in below estimates and the company issued a margin forecast that disappointed, per CNBC. Palantir posted an earnings beat, yet its shares slipped after hours as growth in US commercial contracts slowed. Apple had already fallen 1.83% in regular trade.
Economy
ISM manufacturing index rises to 55.5
The ISM Manufacturing PMI rose to 55.5 in October from 54.5 in September, above the 54.6 expected by the market. Production climbed to 59.0. The prices index fell 2.7 points to 75.2, its largest monthly decline. JOLTS data for September is due at 10:00 AM ET today, with consensus at 7.13 million openings against 7.079 million previously.