Stock Futures Lower, Elon Musk-Twitter, OPEC+, Tesla and Aaron Judge – Five things you need to know
Here are five things you need to know before the market opens on October 5.
1. — Stock futures break early in the fourth quarter
U.S. stock futures on Wednesday, kicking off a strong two-day start to the fourth quarter. At last check, futures on the Dow Jones Industrial Average were at 280. Those on the S&P 500 fell 35 points while those on the Nasdaq fell 101. On Tuesday, US stocks jumped for a second day, with the Dow industrials up 825 points, or 2.8%, the S&P 500 veering to 3.06% and the Nasdaq jumping 3.34%. Major indexes had fallen in August and September amid high inflation and the Federal Reserve’s determination to crush it with interest rate hikes. A number of economic reports are due out Wednesday, including the ADP Payrolls report at 8:15 a.m. EST, the International Trade Balance at 8:30 a.m., and the ISM Services Index at 8:30 a.m. 10. And analysts and investors will be watching Friday’s US jobs report assesses the impact the Fed’s rate hikes are already having on the economy. The Wall Street Journal’s current forecast is for an increase of 275,000 jobs.
2. — Elon Musk puts a $44 billion bid for Twitter back on the table
Elon Musk, billionaire CEO of electric vehicle leader Tesla (TSLA) filed its offer for the microblogging site Twitter (TWTR) — $54.20 per share, or $44 billion — back on the table, according to a regulatory filing, TheStreet’s Luc Olinga reported. Musk had made the offer for Twitter on April 25 but withdrew it on July 8, saying the company lied to him about the number of fake accounts on the platform. Twitter filed a lawsuit, asking the Delaware Chancery Court to compel Musk to keep his pledge. A five-day trial was due to begin on October 17. Musk’s offer is conditional on Twitter dropping the lawsuit. Twitter shares closed Tuesday at $52, 4% below Musk’s offer price. How to monetize Twitter will be one of Musk’s thorniest endeavors if and when he gets the deal done.
3. — OPEC+ is said to be considering deep oil production cuts
OPEC+ could cut its oil production targets at its meeting on Wednesday, even as the United States pressures the group to produce more, Reuters reported. A decline in an already tight oil market could lead to higher oil prices, which in three months have fallen 25% to around $90 from $120. This drop came on fears that the global economy could slide into recession; interest rate hikes from the Federal Reserve and a stronger dollar, Reuters reported. OPEC+, which includes Saudi Arabia and Russia, is considering cuts of 1-2 million barrels per day, sources told the news service.
4. — Tesla will remove ultrasonic sensors from vehicles, only use cameras
You’re here (TSLA) said it would only use cameras in the driver-assist features of its electric cars, removing ultrasonic sensors from the vehicles. Elecktrek reported that Tesla’s driver assistance system originally included eight cameras, forward-facing radar and multiple ultrasonic sensors all around its vehicles. “Ultrasonic sensors were primarily used for short-range object detection in applications such as automatic parking and collision warnings,” the news service reported. The move, which will reduce costs, will also limit some features. Elecktrek said, adding that software updates will improve the system. Regulators have scrutinized Tesla’s self-driving technology after its cars equipped with the system were involved in crashes.
5. — Aaron Judge breaks American League record with 62nd home run
New York Yankees outfielder Aaron Judge, in the second-to-last game of the season, hit his 62nd homer, passing Roger Maris to set an American League record. Judge made his shot in the first inning of a game against Texas Rangers pitcher Jesus Tinoco. Judge, 30, is the first player to hit 60 homers since 2001. He leads the league in all three Triple Crown stats — batting average, home runs and runs scored — and if he holds the lead in average, Sports Illustrated reported, he had become the first Triple Crown winner in a decade and only the second in 55 years.