Stock Market News For Today October 5, 2021
Stock Market Futures Edge Higher After Monday's Losses
Stock market futures are on the rise in early morning trading on Tuesday. This comes after the broader stock market took heavy losses throughout the prior session. In part, this could be due to growing concerns over global supply chain constraints and the overall economy. Not to mention, rising Treasury bond yields are particularly weighing in on tech stocks . So much so that the tech-heavy Nasdaq composite sank by over 2% yesterday. Even so, there remain experts who see a game plan amid all this.
All in all, Goldman Sachs' ( NYSE: GS ) equity strategist David Kostin had this to say, " As equity valuations come under scrutiny amid the rapid rise in real rates, investor focus will increasingly assess whether earnings growth can continue to lead the market higher. " Kostin went on to highlight four key areas investors should be watching in the reports and management commentary this earnings season. These would be supply chains, oil, labor costs, and growth in China. He concluded by saying, " We expect upside to consensus estimates but believe the frequency and magnitude of EPS [earnings per share] beats will moderate from 1H 2021. " As of 6:38 a.m. ET, the Dow, S&P 500, and Nasdaq futures are gaining by 0.33%, 0.36%, and 0.41% respectively.
GlobalFoundries Kicking Into High Gear With U.S. IPO Filing
To start the ball rolling, there is some exciting news in the global semiconductor industry now. Namely, GlobalFoundries (GFS), the third-largest semiconductor foundry, is gunning for a U.S. IPO. Through a filing with the Securities and Exchange Commission (SEC), we now know that the company is looking to list its shares on the Nasdaq. In detail, the company is planning to trade under the ticker GFS. For a sense of scale, GFS currently operates in the U.S., Germany, and Singapore. According to CEO Tom Caulfield, the company plans to invest $1.4 billion in its chip factories this year. Additionally, GFS is looking to double this figure in 2022.
By and large, with GFS being a direct competitor to semiconductor giants such as Taiwan Semiconductor Manufacturing ( NYSE: TSM ) and Samsung ( OTCMKTS: SSNLF ), this is a major play. In terms of its core end markets, GFS's chips serve the fintech and touch display industries among numerous others. Amidst the ongoing semiconductor chip shortages, investors could be eyeing the top semiconductor stocks in the space now. This would be the case as even with the supply-demand imbalance, GFS sees the global chip industry doubling its revenue through the next decade. As such, semiconductor stocks could be worth watching in the stock market today given this piece of news.
Microsoft's Windows 11 Is Here and It's Bringing A Lot To The Table
In other tech-related news, Microsoft ( NASDAQ: MSFT ) would be in focus today. For the most part, this would be thanks to the release of its latest operating system, Windows 11. Notably, this would mark the company's first major system upgrade in six years. Through a free upgrade, Microsoft is bringing a collection of new features, design refreshes, and updates to Windows devices. Overall, the current version update would serve as a new and improved version of Windows 10.
According to reviewers who have had time to work with Windows 11, there are several key changes to note. For starters, the aesthetic changes system-side provide a more streamlined and minimalistic experience for users, allowing for better content management. Following that, Microsoft is also bringing tighter integrations with its workplace communication app Teams.
Accordingly, Teams will be accessible via the taskbar on boot up for Windows 11 users. Alongside widgets, greater multitasking tools, and new gaming features, Microsoft is evidently not messing around with this update. Ideally, all of this could further incentivize the use of its ecosystem of services and solutions. Because of all that, investors could be eyeing MSFT stock even amidst the current dips in tech stocks.
Airline Industry Looking To Make A Steady Ascent From Its Current Losses In 2022
The global airline industry is reportedly on the road to recovery. This would be according to a report posted by the International Air Transport Association (IATA) yesterday. By the IATA's estimates, the industry could significantly cut its losses in 2022. Namely, the firm, which represents nearly 300 airlines operating 80% of global air traffic, believes that global losses could amount to $12 billion next year. This would mark a 78% year-over-year improvement from this year's estimate of $51.8 billion. In the larger scheme of things, IATA's director-general, Willie Walsh said, " While serious issues remain, the path to recovery is coming into view. "
Well, for one thing, you can't deny that airline operators are much more prepared to handle the pandemic now. This would be the case as some of the top names in the space like Southwest Airlines ( NYSE: LUV ) comply with vaccine mandates. At the same time, companies such as Delta Airlines ( NYSE: DAL ) continue to see their businesses improve. As of the past weekend, Delta's ticket sales are stabilizing and started improving, according to the company. In turn, Delta believes it remains on course to meet its third-quarter revenue goals. Given the current vaccination rates, things could be looking up for the air travel industry now.
BHP Going For The Copper
BHP Group ( NYSE: BHP ) appears to be hard at work growing its international operations. According to a report from Bloomberg, the mining giant is in talks to acquire a copper project in the Democratic Republic of Congo. To elaborate, BHP is reportedly dealing with Ivanhoe Mines in this current deal. Considering the increasing demand for copper in renewable energy manufacturing processes, this is a notable move by BHP.
In general, should BHP go through with this move, it would be getting access to one of Africa's largest copper and cobalt sources. If anything, this would serve to fuel BHP's overall momentum now. In its latest fiscal quarter report, the company did post stellar figures across the board. This is evident as it saw significant year-over-year gains of 70% in total revenue and 143% in earnings per share. As a leading name among materials sector stocks, investors could be tuning their radars towards BHP stock.