Stock Market Today: Dow Slips as Bitcoin Surges - Barron's

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Chinese GDP growth slowed in the last quarter, data showed Monday.

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The stock market was slipping Monday as poor economic data out of China underscored many of the macro challenges facing markets. Inflation fears remained on the radar, while interest rates popped.

Futures for the Dow Jones Industrial Average were indicating an open 94 points, or 0.3% lower, after the index rose 382 points Friday to close at 35,294. Futures for the S&P 500 and Nasdaq Composite both fell 0.2%.

“Futures are modestly lower thanks to underwhelming Chinese economic data and rising global bond yields,” writes Tom Essaye, Founder of Sevens Report Research. 

Investor concerns remain focused on familiar themes such as inflation, supply-chain disruptions, and central bank stimulus. In the spotlight Monday were poor economic data out of China showing the macro impact of some of these forces.

Chinese gross domestic product expanded by 4.9% year-over-year in the third quarter, while industrial production for September rose 3.1%. Both measures fell short of expectations. 

“Manufacturing was hit hard by supply-chain disruptions due to Covid as some port operations were hit in 3Q21, and chip shortages continued in the quarter,” said Iris Pang, the chief economist for Greater China at ING bank.

Overseas, the Shanghai Composite index slipped 0.1% and the pan-European Stoxx 600 dropped 0.5%.

U.S. futures for West Texas Intermediate crude rose 1.5% to over $83 a barrel.

The 10-year Treasury yield rose to 1.6%, but short-term interest rates have also been on the rise; the 2 year yield popped to 0.45% from 0.39% Friday. The interest rate has been surging since the end of September, when the Federal Reserve suggested it is turning its attention towards providing less accommodation to the economy. Higher interest rates can make borrowing less attractive for businesses, which can in turn stunt economic growth. 

Elsewhere, the price of Bitcoin was approaching its all-time high of near $65,000 amid expectations that U.S. regulators would approve the first exchange-traded fund tracking Bitcoin price futures. The leading crypto was around 4% higher Monday to near $62,000.

Here are five stocks on the move Monday

Albertsons Companies (ACI) stock rose 5% after the company reported a profit of 64 cents a share, beating estimates of 45 cents a share, on sales of $16.5 billion, above expectations for $15.8 billion. 

State Street (STT) stock gained 1.2% after the company reported a profit of $2 a share, beating estimates of $1.92 a share, on sales of $2.99 billion, above expectations for $2.96 billion. 

Occidental Petroleum (OXY) stock gained 2.7% after getting upgraded to Buy from Hold on Truist. 

Walt Disney (DIS) stock dropped 1.8% after getting downgraded to Equal Weight from Overweight at Barclays. 

NetApp (NTAP) stock dropped 2.2% after getting downgraded to Sell from Neutral at Goldman Sachs. 

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