No jobs report amid shutdown, Apple pulls ICEBlock from App Store: Morning Buzz

The major averages were sharply higher near noon as the U.S. government shutdown marks its third day. There remains strong optimism that the Federal Reserve will cut rates again soon even as the government shutdown drags on and disrupts key economic data releases.

With nonfarm payrolls datum postponed, markets are leaning on alternative indicators, which currently suggest softening in the labor market and bolster the case for further easing. The broader backdrop remains supportive as equities reached fresh highs overnight and inflows into U.S. stock funds surged, reflecting appetite for growth exposure in this rate-cut environment.

Looking to commodities, gold prices are climbing towards record highs once again, hovering around the $3,900 mark. Meanwhile, oil prices are edging higher as well after an overall down week.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.

1. STOCK NEWS:

• Due to the ongoing U.S. government shutdown, the Bureau of Labor Statistics did not release a monthly jobs report
• With regard to the shutdown, if Senate Democratic and Republican short-term measures are blocked again, the Senate will adjourn until Monday, extending the shutdown further
• Apple (AAPL) has removed ICE tracking app ICEBlock, as well as similar apps, from the App Store following a request from the U.S. Department of Justice
• Applied Materials (AMAT) said it expects a new Bureau of Industry and Security rule affecting Q4 revenue by about $110M and FY25 revenue by roughly $600M
• Rocket Pharmaceuticals (RCKT) withdrew its Biologics License Application to the FDA for Fanskya

2. WALL STREET CALLS:

• Jefferies downgraded Apple (AAPL) to Underperform, calls iPhone expectations “excessive”
• Analysts took opposite sides on Instacart (CART) as Fox Advisors upgraded and Piper Sandler downgraded shares
• Bumble (BMBL) downgraded at Goldman Sachs, here’s why
• PayPal (PYPL) downgraded to Peer Perform at Wolfe Research
• Zillow (ZG) upgraded to Buy at Gordon Haskett after recent share price weakness

3. AROUND THE WEB:

• BlackRock’s (BLK) Global Infrastructure Partners is in advanced negotiations to buy Macquarie-backed Aligned Data Centers, Bloomberg says
• To further cut manual tasks at the company, Walmart (WMT) is planning to use sensors to track the location and status of 90M pallets of groceries it ships to stores, FT reports
• China is pulling back on its use of Nokia (NOK) and Ericsson (ERIC) in its networks as President Xi Jinping looks to separate the country’s tech infrastructure from the west, FT says
• Boeing (BA) is expanding its plans to replace workers striking in the St. Louis-area with new hires through the end of the year, Reuters reports
• Accountability Board, a nonprofit advocacy group, filed a proposal with UnitedHealth (UNH) to separate the company’s chairman and CEO roles, Bloomberg says

4. MOVERS:

• Red Cat (RCAT) gains after Needham initiated coverage of the stock with a Buy rating
• Rumble (RUM) increases after entering a strategic partnership with Perplexity
• Esperion (ESPR) higher after entering a settlement agreement with Dr. Reddy’s Laboratories (RDY) and its affiliate Dr. Reddy’s Laboratories
• Roblox (RBLX) lower after disclosing that a director sold 66K shares of stock
• Celestica (CLS) falls in New York after TD Securities downgraded the stock to Hold from Buy

5. EARNINGS/GUIDANCE:

• PepsiCo (PEP) will report Q3 results on October 9
• McCormick (MKC) will report Q3 results on October 7
• Penguin Solutions (PENG) will report Q4 results on October 7
• Aehr Test Systems (AEHR) will report Q1 results on October 6
• Saratoga (SAR) will report Q2 results on October 7

INDEXES:

Near midday, the Dow was up 0.99%, or 458.95, to 46,978.67, the Nasdaq was up 0.28%, or 65.04, to 22,909.09, and the S&P 500 was up 0.50%, or 33.43, to 6,748.78.