Wall Street is buzzing with anticipation ahead of crucial economic data on jobless claims and producer prices, while Treasury yields continue their upward trajectory. Amidst this backdrop, the energy sector is experiencing a significant boom, with several major players hitting all-time or multi-year highs as crude oil prices surge. In contrast, some prominent tech and retail stocks, including Starbucks, Macy’s, Oracle, McDonald’s, and Nike, are facing headwinds and significant stock declines from recent peaks, presenting a mixed picture for the market.
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As the trading session unfolds, Wall Street is on high alert, with key economic data releases and a surge in Treasury yields setting the stage. While energy giants are reaching new heights, some tech and retail stalwarts are navigating significant downturns.
Key Economic Indicators on Deck
Investors are keenly awaiting the release of weekly jobless claims and the producer price index (PPI) at 8:30 a.m. ET. These figures are crucial for gauging inflation and labor market health. The consensus estimate projects initial jobless claims to hover around 205,000. For PPI, analysts anticipate a 0.4% month-over-month increase, contributing to a substantial 5.3% year-over-year rise. The 'Squawk Box' team will provide immediate analysis and market reactions to these critical numbers.
Treasury Yields on the Rise
The bond market has seen a notable uptick in yields, reflecting shifting investor sentiment. The U.S. 2-year Treasury yield has climbed to its highest point since July 2024, reaching 4.434%. Meanwhile, the 10-year Treasury yield has touched levels not seen since November 2023, hitting 4.857%. The 3-month Treasury bill currently yields 3.9%. Corporate bond ETFs are also offering compelling returns, with Fidelity Corporate Bond ETF (FCOR) yielding 4.74%, State Street SPDR Bloomberg High Yield Bond ETF (JNK) at 6.76%, iShares iBoxx High Yield Corporate Bond ETF (HYG) at 6%, and iShares 0-5 Year High Yield Corporate Bond ETF (SHYG) providing 7.05%.
Executive Insights: Starbucks and Freeport-McMoRan
Brian Niccol, CEO of Starbucks, will join 'Squawk Box' at 8 a.m. ET. Under his leadership, Starbucks shares have seen a 30% gain, though the stock is currently down 9.5% from its August 13 high. Later in the day, Kathleen Quirk, CEO of Freeport-McMoRan, will be featured on 'Closing Bell: Overtime.' The mining giant's stock has also pulled back, down 5% from its late August high.
Company Earnings and Stock Movements
- Macy's: The retail giant reports earnings in the morning. Its shares have declined 3% in the last three months and are down 19% from an August 4 high.
- Oracle: Reporting in the afternoon, Oracle's stock is down 21% over three months and 53% from a recent high.
- HP (HPQ): A bright spot in tech, HP recently hit a 52-week high and is up nearly 8% in September.
- Big Dow Components Hitting Lows: McDonald's is off 25% from its March 2 high, now trading at lows last seen around July 2024. Nike is at its lowest point since June 2014, with shares down 51% from their October 2 high.
Energy Sector Ignites with New Highs
The energy sector is roaring, fueled by Brent crude topping $100 a barrel on Wednesday. Both Brent and West Texas Intermediate (WTI) benchmarks are up more than 20% in the past month.
- ConocoPhillips: The stock is at a four-year high, up 3% in September and a staggering 45% year-to-date.
- Marathon Petroleum: Having surged 146% from its 52-week low on a recent New Year's Eve, the company's shares are now at an all-time high.
- Chevron: Hit an all-time high Wednesday, marking its peak since the Texaco merger, and is up 3.7% in September.
- Phillips 66: Also reached an all-time high, unprecedented since its 2013 IPO, with shares nearly doubling in a year.
- Valero: Shares are at an all-time high, jumping almost 5% in two days and 8.4% so far in September.
Tune into 'Morning Call' starting at 5 a.m. for an in-depth look at the surge in oil prices.
