NEWS
Q4 Kicks Off With More Conflict

Stocks stumbled on their first day of the fourth quarter as tensions in the Middle East escalated. That and several other macro headwinds sent most risk assets to the downside, with oil prices catching a bid after several months of downside. 👀

Today's issue covers the latest mix of “macro” headwinds, under-the-radar dealmaking, and why Nike is not doing so well... 📰

Here’s the S&P 500 heatmap. 4 of 11 sectors closed green, with energy (+2.28%) leading and technology (-2.44%) lagging.

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $HUSA, $INDO, $ICCT, $PK, $EONR 📉 $HUM, $HPH, $LW, $AVXL, $WING*

*If you’re a business and want to access this data via our API, email us.

STOCKS
A Mix Of Macro Headwinds 😰

Investors came into today with concerns about the impact of the U.S. dockworkers' strike on the economy and markets. As of midnight, the strike had halted half the nation’s ocean shipping. ❌

U.S. East Coast and Gulf Coast dockworkers are staging their first large-scale strike in nearly 50 years as they attempt to capitalize on a still tight(ish) labor market to secure better compensation, benefits, and some job security against automation.

Stocks related to the sector, including shipping giants like Maersk and truckers like Landstar System, were hit on fears this could impact their long-term results. Meanwhile, FedEx and other alternative modes of transportation found a bid as investors bet on them picking up the seabound slack. 🚢

Additionally, U.S. labor market data began to trickle in today, with the JOLTs data showing that the quits rate fell to its lowest level since June 2020 as the hiring rate slumped to its lowest since 2013 (excluding the pandemic). The labor market continues to soften along with the economy, which is giving investors anxiety that the Fed may be easing too slowly.

Meanwhile, Hurricane Helene impacted a North Carolina town vital to the semiconductor industry. Spruce Pine is one of the only places in the world to mine high-purity quartz, an essential ingredient of semiconductor chips used in products across many sectors and industries. 🌪️

And the news getting the most attraction is Iran firing at least 180 missiles into Israel as the Middle East’s conflict grows further. The escalation pressured risk assets across the board and pushed oil prices higher.

Overall, it’s been a busy week of macro data, primarily related to the U.S. labor market. As such, we’ll likely see continued volatility as the market digests this new information and figures out how to position for an eventful Q4. 😬

STOCKTWITS “CHART ART”
$XOM Leads Energy Higher On Middle East Tensions 🛢️

After a several-month slump due to high production and economic worries weighing on demand projections, oil prices caught a bid after Iran launched missiles into Israel, further escalating the Middle East’s tensions.

Stocktwits users were quick to point to this as a catalyst for energy to finally find its footing, with @ivanhoff highlighting Exxon Mobile’s relative strength as it quickly approaches its all-time highs.

With many other energy stocks well off their highs, if this is truly the start of a broader move higher in the sector, many expect those stocks who have helped up the best to lead the charge…and $XOM is certainly among them. 📈

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