Stock futures slip Monday with Dow on track for best month since 1976

JPMorgan wants to manage more of the $500 billion in annual US rents with its new platform

A ‘For Rent’ sign is displayed near a house on February 07, 2022 in Houston, Texas.

Brandon Bell | Getty Images

JPMorgan Chase tested the software created for landlords and tenants which automates online rent payments, Sam Yen, chief innovation officer of JPMorgan’s commercial banking division, told CNBC.

Property managers and tenants don’t need to be JPMorgan customers to sign up for the platform when it goes live more widely next year, Yen said.

Digital payments have taken over more and more transactions around the world, boosted in recent years by the pandemic, but there is one corner of commerce where paper still reigns supreme: the monthly rent check. Indeed, the market is highly fragmented, with most of the country’s 12 million property owners managing smaller portfolios of less than 100 units.

As a result, about 78% are still paid using old-fashioned checks and money orders, according to JPMorgan. More than 100 million Americans pay $500 billion a year to live in rentals, the bank said.

—Hugh Son

Barclays downgrades Amgen ahead of obesity drug update

Barclays says investors should sell shares of Amgen ahead of its update for its obesity drug scheduled for next week.

Analyst Carter Gould said in a note to clients on Monday that despite the stock’s recent outperformance, investors have seen “sparse initial data” on the company’s drug.

CNBC Pro subscribers can read more about the Barclays downgrade here.

—Sarah Min

Paramount drops 3% after Wells Fargo downgrade

Paramount shares fell more than 3% in premarket trading on Monday after Wells Fargo downgraded the entertainment stock to underweight and said shares could fall more than 30%.

“We are downgrading PARA to underweight as we can no longer justify its premium multiple amid our more negative view of linear trends and the uncertain outlook for DTC,” analyst Steven Cahall wrote.

CNBC Pro subscribers can Read the full story here.

—Sarah Min, Samantha Subin

The Home Depot has a long-term opportunity with the Pro business

Despite the current macroeconomic environment, Home deposit has the right long-term growth strategy, Citi said in a note Monday.

In particular, the the trader’s Pro activitywhich targets professionals with larger planned orders, “only scratches the surface of the long-term potential,” wrote analyst Steven Zaccone.

“The planned buying opportunity with the big pro adds incremental sales and margin dollars to the business today, but it’s still very nascent,” he said. “After more than 4 years of investment and growing traction, we believe the business is poised to gain momentum over the next few years.”

Home Depot, down 28% year-to-date, is up nearly 14% from Citi’s price target.

Brazilian stocks fall after Lula’s stunning win

The $5.5 billion iShares MSCI Brazil ETF (EWZ), the largest exchange-traded fund that tracks Brazilian stocks, fell about 2.5% in premarket trading on Monday after the Brazilians secured a narrow presidential victory over Luiz Inácio Lula da Silva. The election gave the leftist former president another shot at power by rejecting the far-right policies of incumbent Jair Bolsonaro.

—Yun Li

Wynn Resorts, XPO Logistics, Petrobas among stocks moving in pre-market

These were the stocks that made the biggest moves in Monday’s pre-market trading session.

Wynn Resorts – Casino shares jumped more than 6% in premarket on news that investor Tilman Fertitta took a 6.1% stake in the resort operator, according to a Securities and Exchange Commission filing .

Petrobras — Shares of the Brazilian state-owned oil company plunged 8.9% in premarket after Luiz Inacio Lula da Silva defeats Jair Bolsonaro in the Brazilian presidential election.

XPO logistics – Shares gained 2.5% after the logistics company reported quarterly earnings of $1.45 per share and beat estimates by 10 cents per share. XPO’s revenue also beat analysts’ forecasts, helped by improved revenue from XPO’s LTL business.

Read the full list of stocks are moving here.

—Peter Schacknow, Samantha Subin

Eurozone inflation hits record high, economic growth slows in third quarter

Eurozone inflation climbed 10.7% from a year ago during the month of October as the 19-member bloc grapples with higher food and energy prices accentuated by Russia’s invasion of Ukraine.

This is the highest monthly reading since the Eurozone was formed.

The data comes after countries individually reported flash estimates last week. In Italy, headline inflation stood at 12.8% year-on-year, while Germany said inflation jumped to 11.6%.

Some countries, including Estonia, Latvia and Lithuania, have seen inflation rise by more than 20%.

Preliminary data released on Monday also showed sluggish economic growth in the third quarter, with gross domestic product rising just 0.2% in the third quarter. That’s down from a 0.8% increase in the second quarter.

—Silvia Amaro, Samantha Subin

Wheat prices rise nearly 6% after Russia pulls out of grain export deal

World wheat prices began to rise after Russia withdrew from the Black Sea grain export deal last weekend.

The most active wheat contract on the Chicago Board of Trade jumped 5.8% to $8.77-1/2 a bushel around midnight London time, according to Reuters, after hitting a high of $8.93. the bushel. Corn and soybean prices also rose.

The increases come after Russia announced on Saturday that it was suspending its participation in the Black Sea Grain Initiative which was negotiated in July and which allowed the export of vital agricultural products from several Ukrainian ports.

Russia announced on Saturday that it was withdrawing from the agreement indefinitely after accusing Ukraine of a “massive” drone attack on the Black Sea Fleet in Sevastopol in Crimea.

Ukraine did not say whether it was responsible for the attack. President Volodymyr Zelenskyy said Russia’s withdrawal from the initiative was “rather predictable” and the global food crisis would worsen.

An aerial view of the Sierra Leone-flagged dry cargo ship Razoni which left the port of Odessa on Monday, arriving at the Black Sea entrance of the Bosphorus Strait in Istanbul, Turkey, Aug. 3, 2022.

Anadolu Agency | Anadolu Agency | Getty Images

Moscow’s decision was “an absolutely transparent Russian intention to deflect the threat of large-scale famine to Africa and Asia,” Zelenskyy said, adding that “access to food has actually deteriorated for more than 7 million consumers”.

The UN and Turkey, which helped Ukraine and Russia reach the grain deal, have agreed a plan with Ukraine to help move 16 ships (12 outbound and 4 inbound) stranded in the maritime corridor used to export cereals.

The grain export control agency, the Joint Coordination Centre, said in a statement on Sunday that “in order to continue to realize the Initiative, it was proposed that the Turkish and United Nations delegations provide tomorrow 10 inspection teams aimed at inspecting 40 outgoing vessels. This inspection plan was accepted by the Turkish delegation. ‘Ukraine. The delegation of the Russian Federation has been informed.’

—Holly Ellyatt

Goldman Sachs expects Fed rates to peak at 5%

Goldman Sachs economists expect the Federal Reserve funds rate to peak at 5%, after raising its forecast for the central bank to hike 75 basis points at the next meeting this week.

Economists led by Jan Hatzius said in a Saturday note they were adding another 25 basis points to their forecast – now calling for a 50 basis point hike in December, a 25 basis point hike in February and a another 25 basis point increase in March.

“Inflation is expected to remain uncomfortably elevated for some time, which could make continued upside in small increments the path of least resistance,” the note said.

Jihye Lee

CNBC Pro: These 12 cheap global stocks should rally — and analysts love them

Stocks around the world have sold off this year on fears of recession and soaring inflation – and now look cheap.

Analysts say there could be buying opportunities on some stocks that they expect to see a rally.

To find these stocks, CNBC Pro selected names under the MSCI World Index that met a number of criteria.

CNBC Pro subscribers can learn more here.

—Weizhen Tan

Flat Open Equity Futures Contracts

Futures were little changed when trading began at 6 p.m. ET on Sunday, with Nasdaq 100 futures down just 0.1% and S&P 500 and Dow futures closer to the fixed line.

—Jesse Pound

Traders looking for a sign of slowing from the Fed

Wall Street will be closely watching the Federal Reserve’s statement this week for signs that the central bank will slow its pace of rate hikes.

According to FedWatch CME Tooltraders estimate there is an 80% chance the Fed will hike rates by three-quarters of a point on Wednesday.

This would bring the central bank’s target range to 3.75% to 4%.

Beyond that, however, the market looks more uncertain. There is only a 44% chance of another rise of this size in December.

—Jesse Pound

Dow set for best month since 1976

Major averages rose last week despite a rocky batch of earnings. All three are poised to break a two-month losing streak, and the Dow Jones is poised for its best month in over 40 years.

Here’s where things stand:

The Dow:

  • Up 5.72% last week, its fourth straight winning week
  • Up 14.40% for the month, its best month since January 1976, when it gained 14.41%

The S&P 500:

  • Up 3.95% last week, its second positive week in a row
  • Up 8.8% for the month

The Nasdaq Compound:

  • Up 2.24% last week, its second consecutive positive week
  • Up 4.98% for the month

—Jesse Pound, Christopher Hayes

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