Ringside · Post-Bell · October 8
- Chipmakers sold off after a Financial Times report on OpenAI's revenue; the Nasdaq Composite fell 1.25%.
- Brent settled up 4.1% at $104.28 after Iranian attacks on tankers; Trump ruled out strikes before November 3.
- The 30-year bond auction drew 2.54 bids per dollar, and the 30-year yield closed at 5.60%.
Indexes
Technology stocks fell for a second day Thursday after the Financial Times reported that OpenAI's revenue is lower than earlier reports said. The Nasdaq Composite dropped 1.25% to 27,193.34, and the S&P 500 lost 0.47% to 7,765.36. The Dow rose 0.10%, helped by Chevron and Home Depot, and the Russell 2000 ended almost flat. Oil jumped on Iranian attacks on shipping, then pared its gain after President Trump said the US would not strike Iran before the midterm elections. Treasury yields fell after strong demand at a $22 billion auction of 30-year bonds. Slightly more than half of US stocks rose, TheStreet reported. Technology was the weakest sector, down 1.79%.
| Index | Close | % Chg | Session range | Note |
|---|---|---|---|---|
| S&P 500 | 7,765.36 | -0.47% | 7,731.26 – 7,797.79 | Second straight decline |
| Nasdaq Composite | 27,193.34 | -1.25% | 27,066.76 – 27,491.89 | Losses grew after the midday OpenAI report |
| Dow Jones Industrial Average | 51,231.64 | +0.10% | 50,939.00 – 51,245.28 | Chevron and Home Depot each up more than 3% |
| Russell 2000 | 2,794.13 | +0.03% | 2,762.58 – 2,795.38 | Closed at the top of its range |
| Volatility index (VIX) | 15.41 | +2.19% | — |
Sector Heat Map
| Sector (ETF) | Close | % Chg |
|---|---|---|
| Energy (XLE) | $65.24 | +2.97% |
| Consumer Staples (XLP) | $83.42 | +2.11% |
| Financials (XLF) | $54.23 | +0.89% |
| Communication Services (XLC) | $112.07 | +0.73% |
| Real Estate (XLRE) | $40.85 | +0.69% |
| Materials (XLB) | $49.27 | +0.59% |
| Industrials (XLI) | $168.40 | +0.33% |
| Consumer Discretionary (XLY) | $111.71 | +0.31% |
| Utilities (XLU) | $41.07 | -0.19% |
| Health Care (XLV) | $168.16 | -0.39% |
| Technology (XLK) | $197.78 | -1.79% |
Eight of the eleven sectors rose. Energy and consumer staples led, and technology fell the most.
In the News
Rates, FX, Commodities
The 30-year yield reached its highest level in 24 years in the morning before falling after the auction, Kiplinger reported. Oil rose on the tanker attacks and on Gulf of Mexico output shut ahead of Hurricane Isaias. Both crude benchmarks are exchange settlements reported by Bloomberg, and natural gas is a closing price.
| Rates & dollar | Level | Note |
|---|---|---|
| 2-year Treasury | 4.75% | Thursday close |
| 10-year Treasury | 5.23% | Thursday close |
| 30-year Treasury | 5.60% | Thursday close; auction day |
| 2s10s spread | 47 bp | Gap between 2-year and 10-year yields |
| Dollar index | 102.11 | -0.12% on the day |
| Commodity | Thu settle / close | % Chg |
|---|---|---|
| WTI crude (Nov) | $91.49 | +3.64% |
| Brent crude (Dec) | $104.28 | +4.07% |
| Gold (Dec futures) | $4,158.90 | — |
| Natural gas | $3.129 | — |
Technicals
The S&P 500 closed at 7,765.36. That is about 0.7% below Tuesday's close of 7,818.93. The session low of 7,731.26 is first support. The 20-day and 50-day averages are both near 7,690, about 1% below the close. The 200-day average is 7,245.96.
The Nasdaq 100 closed at 30,725.81, down 1.39%. Its 20-day average is about 1.6% below the close. The 50-day average, at 29,719.20, is the next support.
The 10-year yield closed at 5.23%, below Monday's 5.31%, which was the highest close in 24 years. It remains above its 20-day average of 5.13%.
The 2-year yield, the one most tied to Fed expectations, closed at 4.75%. That is below its September 28 close of 4.92%, the highest of the past month.
Breakouts & Breakdowns
Breakouts
Philip Morris International (PM) rose 4.05% to $200.50. That is above its July 28 close of $200.17, the previous one-year closing high. The 50-day average is $189.70.
Phillips 66 (PSX) gained 3.67% to $281.60. That is above its previous one-year closing high of $274.21, set September 17. The 50-day average of $245.95 is 13% lower.
Breakdowns
Broadcom (AVGO) dropped 4.35% to $360.14. It closed below both its 50-day average of $372.39 and its 200-day average of $368.18.
Constellation Energy (CEG) dropped 4.85% to $285.07. That is just below its 200-day average of $286.44. The 50-day average of $273.29 is the next support.
Top Movers
Gainers
Haemonetics (HAE) rose 17.46% to $119.47 after CSL, the Australian blood-plasma company, said it would finish moving all of its current US plasma centers to Haemonetics' NexSys collection devices by the end of 2027. The two companies signed a non-exclusive supply agreement in August. Haemonetics kept its fiscal 2027 forecast and said it will give more detail with its November results.
Chipotle Mexican Grill (CMG) rose 6.21% to $32.68 after the Financial Times reported that Starbucks (SBUX) has worked with advisers on a possible takeover. Chipotle is worth nearly $39 billion, Reuters reported. Neither company immediately responded to Reuters' requests for comment. Starbucks closed down 0.40% at $93.21.
PepsiCo (PEP) extended its gain after quarterly results and closed up 3.73% at $128.34. Consumer staples were the second-best sector.
Chevron (CVX) rose 3.12% to $211.55 and Exxon Mobil (XOM) gained 2.71% to $168.50 as oil climbed.
Losers
Arm Holdings (ARM) fell 6.48% to $275.29 as chip and AI stocks sold off. Oracle (ORCL) lost 5.48% to $135.69. Intel (INTC) dropped 5.34% to $107.08. Nvidia (NVDA) fell 2.94% to $230.48.
Micron Technology (MU) fell 4.79% to $1,035.84. That wiped out its gain from Wednesday. Advanced Micro Devices (AMD) lost 3.90% to $620.68.
Wolfspeed (WOLF) rose as much as 14.5% after the Defense Department's Office of Strategic Capital offered the chipmaker a conditional loan of up to $1.5 billion. The 30-year loan comes with warrants for up to 7.5% of the company's shares, and there is no guarantee it will be funded. The stock closed down 1.12% at $31.02.
argenx (ARGX) closed down 11.83% at $818.63 after it stopped a late-stage trial in Sjögren's disease.
Macro Data Today
| Release | Actual | Consensus | Prior |
|---|---|---|---|
| Initial jobless claims, week to Oct. 3 | 197,000 | 200,000 (Reuters poll) | 199,000 (revised) |
| Continuing claims, week to Sept. 26 | 1.71 million | — | 1.69 million (revised) |
| 30-year bond auction ($22 billion), high yield | 5.618% | 5.617% when-issued | — |
Claims stayed near 200,000, a low level that points to few layoffs. The auction drew 2.54 bids for every dollar sold, above the recent average of 2.41. Indirect bidders, a group that includes foreign central banks, bought 72.32%.
Notable Earnings This Session
Pre-Open
PepsiCo (PEP) beat third-quarter forecasts but lowered its 2026 core earnings growth outlook.
Helen of Troy (HELE) reported fiscal second-quarter net sales of $440.9 million, up 2.1%. Adjusted earnings rose to $0.79 a share from $0.59. Tariff refunds added about $0.12 a share. The company raised its fiscal 2027 adjusted earnings forecast to $3.60 to $4.15 a share. The previous range was $3.25 to $3.75.
Post-Close
No major companies reported after the close.
Drivers
- Delta Air Lines (DAL) reports third-quarter results before the open and holds its call at 10 a.m. ET. Jet fuel is one of Delta's largest costs, and oil prices rose sharply Thursday. Delta's full-year forecast calls for adjusted earnings of $6.50 to $7.50 a share.
- Hurricane Isaias is expected to make landfall on the US Gulf Coast late Friday or early Saturday. Producers have shut more than 60% of Gulf of Mexico crude output, Bloomberg reported.
- The bond market is closed Monday for Columbus Day, while stocks trade. September consumer prices are due Wednesday, October 14, at 8:30 a.m.