Monday October 3rd

3-10-2016

Wall Street lower after Tesla update, Janus merger; data eyed

U.S. stock index futures indicated a lower open Monday as investors geared up for more economic news and digested new data from Tesla over the weekend. Tesla set new quarterly records for vehicle production and deliveries in the third quarter, according to data released on Sunday. Shares were up 4 percent in premarket trading. Meanwhile, final September manufacturing PMIs are due Monday at 9.45 a.m. ET, followed shortly afterwards by ISM manufacturing figures and construction spending data. New light vehicle sales for September are also expected on Monday. There are no corporate earnings releases of note. On Friday, U.S. equities closed sharply higher as Deutsche Bank shares rebounded amid a report that the German banking giant was near a settlement with the Justice Department. Europe shares were trading mostly flat on Monday, amid caution over the banking sector with no official deal being announced between Deutsche Bank and the DOJ. Germany's DAX index was closed on Monday for a national holiday. In business news, fund management firms Janus Capital and Henderson Group announced an all-share merger. Shares of U.K.-listed Henderson surged over 16 percent. Other firms in the sector also pushed higher including Aberdeen Asset Management and Jupiter Fund Management. Asian markets were higher on Monday as investors mulled the possibility of a settlement between Deutsche Bank and the U.S. Department of Justice. Japan's Nikkei 225 finished up 0.9 percent, or 148.83 points, at 16,598.67 even though the Bank of Japan's closely watched business sentiment survey showed major manufacturers' sentiment remained unchanged from the previous quarter. In Hong Kong, the Hang Seng index was trading up 0.97 percent. Markets in Malaysia and South Korea are shut on Monday for public holidays, while mainland Chinese markets will be shut for Golden Week. Brent crude rose above $50 a barrel to its highest price level since August on Monday, supported by a planned production cut by exporter group OPEC, although analysts cautioned a stubborn supply overhang could temper a longer-lasting rally. December Brent crude futures were last up 36 cents at $50.55 a barrel, off a session low of $49.74 by 7:47 a.m. (1147 GMT). U.S. West Texas Intermediate (WTI) rose 39 cents to $48.63 a barrel, above the day's low at $47.78. Gold edged higher on Monday in response to Britain's decision to set a March deadline to start divorce proceedings from the European Union. Spot gold was up 0.05 percent at $1,316.01 an ounce at 8:40 am ET, with volumes muted due to a holiday in China.