Weekday edition
Cleveland-Cliffs rally, chip stock rebound, and the Fed meeting
Merck KGaA strikes a cash deal for Silence Therapeutics, and SpaceX shares rise on a Musk pledge.
At Monday’s close: S&P 500 +0.41%, Nasdaq-100 +1.17%, Dow −0.07%
Cleveland-Cliffs rallies after earnings beat and a raised outlook
Cleveland-Cliffs (CLF) shares surged 16.3% on Monday after the steelmaker reported third-quarter adjusted earnings above analyst estimates and raised its outlook. The stock closed at $14.10 and edged up 0.2% in after-hours trading. Revenue fell short of consensus forecasts. The broader S&P 500 rose 0.4%.
Adjusted earnings strip out one-off items, and on that basis the company beat what analysts had expected. Adjusted EBITDA, a measure of operating profit, rose from the second quarter and topped the company's own guidance. Steel shipments also climbed from a year earlier. Even after the rally, the shares sit 12.9% below their 52-week high of $16.18.
For readers
What it means for you: For a total-market index fund, Cleveland-Cliffs is a single holding among many, and its news reaches the fund only in proportion to the company's size. The effect of this rally on most retirement accounts is likely small. Interest rates reach nearly every holding, and the Fed's meeting beginning Tuesday, Oct. 27 may matter more.
Markets
Monday’s close
| Market | Level | Change |
|---|---|---|
| S&P 500 | 7,690.73 | +0.41% |
| Nasdaq-100 | 29,529.35 | +1.17% |
| Dow | 51,966.03 | −0.07% |
| 10-Yr | 5.15% | +6 bp |
| Bitcoin (24 hr)As of this edition | $81,428 | −1.57% |
The day ahead
Tuesday’s setup
Monday's rise in the 10-year Treasury yield to 5.15% puts today's homebuilding report in focus, since mortgage rates tend to follow that yield.
10:00 a.m. State Employment and Unemployment (Monthly), September. The report shows how hiring and joblessness varied from state to state last month, adding regional detail to the national jobs picture.
TBD New Residential Construction (Building Permits, Housing Starts, and Housing Completions), September. The report counts new homes started and permits issued; stronger building could signal steadier housing demand, while weaker figures may reflect the strain of higher borrowing costs.
Before open GE Aerospace earnings. Shareholders may get an update on how the company's sales and profit are tracking, along with any change to its outlook.
After close Netflix earnings. Shareholders and subscribers may get the company's latest read on revenue, profit and its outlook once trading ends for the day.
After hours Steel Dynamics. Shares fell 4.6% in late trading; the company also said aluminum volumes were lower than expected for some weeks as quality problems raised production losses.
If you own
Utility stocks and funds slid 2.0% in the latest session, an unusually large move for the group. Holders who rely on the sector for steady income may see bigger swings in fund value than they are used to.
Sector funds pulled in opposite directions: consumer discretionary companies rose 1.8% and utilities slid 2.0%. A portfolio spread across many sectors may have felt little of that split. A single-sector fund could have felt all of it.
GE Aerospace shares last traded at $311.28 going into the company's quarterly report, due before the open today. Results that beat or miss Wall Street's expectations could move the stock noticeably in either direction for holders.
Bond funds may have lost some value as the 10-year Treasury yield rose 6 basis points to 5.15%. Bond prices move opposite to yields, and mortgage quotes, which often track this yield, could rise too.
Need to know
Top stories
- 1
SOXX · +1.73% Chip stock fund rises as longest losing run since 2008 ends. The iShares Semiconductor ETF rose 1.7% on Monday, ending the chip index's longest losing streak since 2008. Micron gained 3.0%, Lam Research added 3.1% and Nvidia rose 1.4%. Even after the bounce, the fund remains 23.4% below its 52-week high. A single up day may not mark a lasting recovery. Read more
- 2
Health care · +125.58% Silence Therapeutics rallies on Merck KGaA cash takeover deal. Silence Therapeutics shares surged 125.6% on Monday after Germany's Merck KGaA agreed to buy the biotech company for cash. The purchase could expand Merck's range of treatments for rare diseases. The shares closed at $19.58, near the offer price. The deal is expected to close in the first quarter of 2027, according to reports. Read more
- 3
Tech · +1.32% SpaceX shares rise as Musk pledges stock to U.S. children. SpaceX shares rose 1.3% on Monday after Elon Musk said he plans to give one share to every U.S. child in 2027. At the same time, insider lockups are ending. A lockup bars employees and early investors from selling for a set period. More shares for sale could weigh on the stock. The giveaway could widen ownership. Read more
AI corner
Three changes that matter
Topics: Energy, Big Tech
Microsoft walks away from U.K. data center deal over power delays
Grid officials reportedly do not expect the Essex site to receive power for years, a sign that electricity shortages could slow AI data center expansion.
Topics: Startups, Deals
OpenAI speeds up fundraising ahead of Anthropic's expected market debut
OpenAI is racing to line up investor commitments before rival Anthropic's expected public debut, according to reports, which could shape how investors value AI developers.
Topics: Markets
CoreWeave debt stress could spread to wider AI borrowing, expert warns
A credit analyst said other AI-linked debt may follow CoreWeave into distressed territory, which could make borrowing costlier for companies funding data centers with loans.
How it works
Market declines
A correction measures size, not cause. Market convention calls a drop past a widely watched line below a recent peak a correction. The label describes how far prices have fallen, not why, and a correction does not always turn into a deeper slide. Chip stocks rebounded on Monday, ending the semiconductor index's longest losing streak since 2008. Even so, AMD has tumbled 17.1% from its 52-week high, well past that line. The word may come up again whenever a major index or a popular stock slips well below its latest peak.
Coming up
Wednesday
AT&T earnings. Results are due before the opening bell.
IBM earnings. Results are due after the closing bell.
Meta Platforms earnings. Results are due after the closing bell.
The close
The big picture. Technology led Monday's rebound, but the recovery is partial. The Nasdaq-100 rose 1.2% as chip stocks bounced, yet it has still slid 2.9% in October. Across the market, more stocks fell than rose. Rates pulled the other way: the 10-year Treasury yield rose to 5.15%, weighing on utilities and real estate. For savers, higher yields can mean better income on new bonds and cash accounts.
On the calendar. Third-quarter figures on typical weekly pay arrive Wednesday, Oct. 21, 10:00 a.m. ET. Faster wage growth could keep pressure on interest rates. September sales of new homes follow on Tuesday, Oct. 27, a read on how buyers are handling higher borrowing costs.
Not investment advice.