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Tesla down as Q3 deliveries miss market estimates
U.S. factory activity slowest in ~2.5 years in Sept -ISM
Credit Suisse, Citi cut 2022 year-end target for S&P 500
Indexes up: Dow 1.55%, S&P 1.53%, Nasdaq 1.20%
Oct 3 (Reuters) - U.S. stock indexes rose on Monday
after sharp declines last week although losses in Tesla Inc
capped the gains on the Nasdaq after the world's most valuable
electric-vehicle maker missed quarterly delivery targets.
Ten of the 11 major S&P 500 sectors advanced in early
trading, with the energy sector leading gains. Megacap
growth and technology companies such as Apple and
Microsoft also advanced 1.5% each.
"We could see a rebound in the beginning of the quarter
simply due to the low sentiment and the lows that were reached
at the tail-end of the last quarter," said Jason Pride, chief
investment officer for private wealth at Glenmede in
All three major indexes ended a volatile third quarter lower
on Friday on growing fears that the Federal Reserve's aggressive
monetary policy will tip the economy into recession.
"We suspect during the quarter it is going to become more
apparent that we are getting closer to a recession as the Fed
continues to increase rates and that should probably keep the
market closer to, if not below, the lows that it is already at."
Meanwhile, major automakers are expected to report modest
declines in U.S. new vehicle sales, but analysts and investors
are concerned that a darkening economic picture, not inventory
shortages, will lead to a drop in future car sales.
Tesla Inc fell 7% after it sold fewer-than-expected
vehicles in the third quarter as deliveries lagged way behind
production due to logistic hurdles. Peers Lucid Group
fell 2% and Rivian Automotive 3.9%.
Oil majors Exxon Mobil and Chevron Corp rose
more than 3%, tracking a jump in crude prices as sources said
the Organization of the Petroleum Exporting Countries and its
allies are considering their biggest output cut since the start
of the COVID-19 pandemic.
At 10:04 a.m. ET, the Dow Jones Industrial Average
was up 445.72 points, or 1.55%, at 29,171.23, the S&P 500
was up 54.78 points, or 1.53%, at 3,640.40, and the Nasdaq
Composite was up 127.33 points, or 1.20%, at 10,702.95.
Data showed global factory output mostly weakened in
September as slowing demand added to the pain from persistent
cost pressures and tighter monetary policy, diminishing economic
In the United States, manufacturing activity grew at its
slowest pace in nearly 2-1/2 years in September as new orders
contracted, likely as rising interest rates to tame inflation
cooled demand for goods.
Credit Suisse and Citigroup became the latest brokerages to
bring down their 2022 year-end targets for the S&P 500 index, as
U.S. equity markets bear the heat of aggressive central bank
actions to tamp down inflation.
Credit Suisse also set a 2023 year-end price target for the
benchmark index at 4,050 points, adding that 2023 would be a
"year of weak, non-recessionary growth and falling inflation."
Advancing issues outnumbered decliners by a 4.49-to-1 ratio
on the NYSE and a 2.43-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week highs and 23 new lows,
while the Nasdaq recorded 37 new highs and 177 new lows.
(Reporting by Ankika Biswas and Bansari Mayur Kamdar in
Bengaluru; Editing by Anil D'Silva and Arun Koyyur)