U.S. stock futures are lower in premarket trading as yields and oil continue to rise. The moves come after solid gains for stocks last week with the S&P 500 (SPX) rising 1.2% and Nasdaq-100 (NDX) jumping 3.3%.

A rise in oil prices weighed on equity futures in early trading with WTI up 3% near $96 a barrel. Yields are also rising this morning with the benchmark 10-Year up 3 basis points near 5.21%, its highest level since 2007. 

According to the CME FedWatch tool, there is a 70% chance of a 25-basis-point rate increase at the October FOMC meeting. Investor focus will continue to be on rates this week with PCE data due on Wednesday morning. 

Jobs data will also be closely watched with JOLTS, ADP and September Nonfarm payrolls due this week.

Snapshot

• Oil (/CL) – Oil prices are up over 3% near $96 a barrel after U.S. President Donald Trump rejected an Iranian peace proposal aimed at ending the Middle East conflict and reopening the strategically vital Strait of Hormuz. The moves come after Trump turned down Iran’s conditional offer to reopen the Strait of Hormuz and told aides he expects U.S. strikes on the country to resume after November’s midterm elections, The Wall Street Journal reported Saturday, citing unnamed U.S. officials.
• Gold (/GC) – Gold futures are down 3% near $4190 as a rise in yields, the Dollar and oil prices heightened inflation concerns and reinforced expectations of further Federal Reserve interest rate hikes.
• Bitcoin (/BTC) – The Crypto Future is down 1.3% near 83,300 in premarket trading. Bitcoin is up nearly 5% this month.
• VIX (/VIX) – The CBOE Volatility Index was down 5% on Friday and settled at 14.87 as stocks were higher. The VIX is up about 9% this morning as stocks are under pressure.
• U.S. Dollar ($DXY) – The U.S. Dollar Index is up 0.15% at 101.12.

Big Premarket Movers

Advancers

• APPLOVIN CORP (APP) 2.09%
• OCCIDENTAL PETROLEUM CORP (OXY) 1.83%
• DEVON ENERGY CORP (DVN) 1.66%
• CF INDUSTRIES HOLDINGS INC (CF) 1.61%
• PHILLIPS 66 (PSX) 1.49%

Decliners

• INTEL CORP (INTC) -2.93%
• META META PLATFORMS INC (META) -3.09%
• FCX FREEPORT-MCMORAN INC (FCX) -4.08%
• NEM NEWMONT CORP -4.24%
• SNDK SANDISK CORP -3.14%

Economic Data (ET)

• 8:15 AM: FOMC Member Bowman Speaks
• 10:30 AM: Dallas Fed Mfg. Survey 
• 11:30 AM: 3 and 6-Month Bill Auctions
• 1:25 PM: FOMC Member Cook Speaks
• 1:30 PM: FOMC Member Barkin Speaks

Notable Earnings

• Premarket: N/A
• Postmarket: JEF, MTN
• Premarket Tuesday: KMX, CCL, UEC
• Postmarket Tuesday: CNCX

Upgrades/Downgrades

Upgrades:

• KeyBanc upgrades First Solar (FSLR) from Underweight to Sector Weight
• BofA upgrades Royal Caribbean (RCL) from Neutral to Buy
• Rothschild & Co Redburn upgrades CF Industries (CF) from Sell to Neutral
• Wells Fargo upgrades Sweetgreen (SG) from Equal Weight to Overweight

Downgrades:

• Deutsche Bank downgrades PepsiCo (PEP) from Buy to Hold
• Argus downgrades L3Harris Technologies (LHX) from Buy to Hold
• DA Davidson downgrades UiPath (PATH) from Neutral to Underperform
• Jefferies downgrades Roblox (RBLX) from Hold to Underperform

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.

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