STOCK MARKET NEWS: JPMorgan’s Dimon joins recession chorus, Nasdaq slides, Bernanke’s Nobel nod

Qiagen logo on a building in Hilden, Germany, Sept. 8, 2020. (Reuters/Leon Kuegeler)

California-based diagnostics company Bio-Rad Laboratories is in talks to merge with Qiagen NV, the Wall Street Journal reported on Monday, citing people familiar with the matter.

Talks between the two companies have been going on for a while but an agreement is unlikely for another few weeks, the report said.

U.S-listed shares of Qiagen rose 8% while Bio-Rad fell nearly 10% after the report.

Bio Rad, which manufactures and supplies products such as laboratory apparatus, instruments and diagnostics, has a market-cap of $12.85 billion.

Both Qiagen and Bio-Rad did not immediately respond to Reuters' requests for comments.

According to the WSJ report, a deal between the two companies could be worth more than $10 billion, making it one of the biggest in the healthcare testing domain after Illumina Inc's $8-billion takeover of cancer-testing firm Grail.

Federal Reserve Vice Chair Brianard delivered more sobering remarks on the state of the U.S. economy and a further slowdown in GDP.

ECONOMY

Fed's Brainard warns higher interest rates will further slow US economy

Interest rates will need to remain elevated for "some time," according to Federal Reserve Vice Chair Lael Brainard, as the central bank tries to tame inflation.

ECONOMY

US economy is headed for recession in a few months, JPMorgan's Jamie Dimon warns

JPMorgan CEO Jamie Dimon said the US economy is in better shape than expected, but warned that several factors are contributing to a likely recession in the next 6 to 9 months.

JPMorgan CEO Jamie Dimon joined the chorus on high level officials, on Monday, warning of a looming recession and the impact.

OPEC flag on the day of OPEC+ meeting in Vienna in Vienna, Austria, Oct. 5, 2022. (Reuters/Lisa Leutner)

Oil prices sank by nearly 2% on Monday, after five straight sessions of gains, as investors worried that economic storm clouds could foreshadow a global recession and erode fuel demand.

Brent crude futures settled at $96.19 a barrel, down $1.73, or 1.8%. West Texas Intermediate crude settled at $91.13 a barrel, losing $1.51, 1.6%. Both benchmarks had risen over the previous week largely on expectations of tightening global supply.

Oil prices fell amid comments from U.S. Federal Reserve officials about rising interest rates and their effect on the economy.

NOO FUZION cans (Photo: Vital Pharmaceuticals)

Bang Energy maker Vital Pharmaceuticals has filed for Chapter 11 bankruptcy protection and is exiting its distribution agreement with Pepsi.

Vital Pharmaceuticals said all business operations will continue, with improved product delivery and service to retailers.

“Immediately prior to VPX/Bang Energy switching to Pepsi in early 2020, Bang’s share of the energy drink market was roughly 9.7%. Under Pepsi’s distribution, roughly 3.4% of that market share was lost,” the company said.

Bang Energy’s new distribution network will launch nationwide and be closer to 100% as it officially completes its exit from the Pepsi relationship this month.

Denbury is higher in Monday trading on a report that Exxon Mobil is weighing a potential takeover of the oil recovery specialist.

People familiar with the matter told Bloomberg said Exxon’s interest is preliminary and that decision has been made.

Denbury is an independent energy company with 191.7 million barrels of oil equivalent per day (MMBOE) of estimated proved oil and natural gas reserves as of December 31, 2021, of which 97% is oil.

Operations are focused in two key operating areas: the Gulf Coast and Rocky Mountain regions.

Lael Brainard during the National Association of Business Economics (NABE) annual meeting in Arlington, Va., Mon., Sept. 27, 2021. (Al Drago/Bloomberg via Getty Images)

ECONOMY

Fed's Brainard warns higher interest rates will further slow US economy

Interest rates will need to remain elevated for "some time," according to Federal Reserve Vice Chair Lael Brainard, as the central bank tries to tame inflation.

The Federal Reserve plans to continue tightening monetary policy until it sees clear evidence of slowing inflation, says Fed Vice Chair Lael Brainard.

Brainard spoke before the National Association for Business Economics in Chicago, Illinois.

"The moderation in demand due to monetary-policy tightening is only partly realized so far," she said.

ECONOMY

Over-aggressive Fed risks triggering deeper recession, NABE survey shows

A new NABE survey released on Monday shows that panelists think the U.S. economic outlook is increasingly skewed to the downside as the Fed hikes interest rates.

Economic forecasters surveyed by the National Association of Business Economics are predicting slower growth and higher inflation in both 2022 and 2023 than previously expected.

“More than three-quarters of respondents believe the odds are 50-50 or less that the economy will achieve a 'soft landing',” said NABE Vice President Julia Coronado, president and founder, MacroPolicy Perspectives.

“More than half the panelists indicate that the greatest downside risk to the U.S. economic outlook is too much monetary tightness,” Coronado added.

Hand pumps gas into car (Photo: iStock)

MARKETS

Gas prices rise and hit $3.91 per gallon

The average price for a gallon of gasoline in the U.S. climbed 12 cents in a week to $3.91 on Monday due to rising demand and tight supplies, AAA said.

High demand and tight supplies are pushing gas prices higher. Prices rose an average of 12 cents over the past week to hit $3.91 per gallon on Monday according to data from AAA. A year ago, gas was $3.27.

AAA says the recent announcement from OPEC+ stating the group of oil-producing nations would slash output by 2 million barrels per day led to the price of oil creeping above $90 a barrel for the first time in several weeks, contributing to rising costs at the pump. 

In general, prices were highest in the West and lowest in the South.

Delivery tour with the Streetscooter (Photo: Deutsche Post DHL)

Deutsche Post DHL is higher in Monday afternoon trading. The world’s leading logistics company said it will raise full year profit guidance when it formally releases third quarter 2022 earnings on November 8, 2022.

2022 guidance is currently 8.0 billion euros (+/- 5%) ($7.79 billion) for earnings before interest and taxes (EBIT).

Deutsche Post also said third quarter EBIT reached around 2.04 billion euros according to preliminary results, up from 1.77 billion euros last year.

“Against the backdrop of overall macroeconomic uncertainties, transport volumes in the B2B business reflected a softer demand. Consequently, the capacity situation in Ocean and Air Freight markets has eased,” the company said.

Hartsfield-Jackson Atlanta International Airport website

TECHNOLOGY

Major US airport websites taken offline, pro-Russia hacking group takes credit

A pro-Russian hacking group named Killnet has reportedly launched a distributed denial-of-service attack, making some U.S. airport websites unavailable.

KillNet says it has taken several airport websites offline, Bleeping Computer reported. The airports include Hartsfield-Jackson Atlanta International Airport, Los Angeles International Airport and Chicago O'Hare International Airport.

The hack does not appear to have impacted operations at the airports themselves.

MARKETS

Tesla breaks its China factory delivery record but trails BYD

Tesla's factory in Shanghai recorded its largest-ever output, but so did its rival BYD. BYD produced nearly 95,000 electric vehicles while Tesla produced 83,000.

Tesla Inc. hit a record of more than 83,000 electric-vehicle deliveries from its recently upgraded Shanghai factory in September, according to data released by the China Passenger Car Association.

The plant delivered 83,135 EVs last month, an 8% increase from August, according to data released by the association on Sunday. 

The American EV maker still trailed Chinese rival BYD Co., which topped the charts for EV deliveries last month with almost 95,000 units, up 14% from August. 

scPharmaceuticals is down more than 20% despite approval of its drug Furoscix and new financing.

The Food and Drug Administration gave marketing approval for Furoscix (furosemide injection). The drug treats congestion due to fluid overload in adults with New York Heart Association Class II/III chronic heart failure. Its delivered via an on-body infusor.

Separately, the pharmaceutical company announced a $100 million debt financing agreement with Oaktree Capital Management.

scPharmaceuticals plans to use these available funds, together with cash on-hand, to repay indebtedness under its existing loan and security agreement and to execute on the launch of Furoscix.

Nvidia set a 52-week low in Monday trading. Shares fell after the Commerce Department announced new export controls on advanced computing and semiconductor manufacturing items to China.

“These updates will restrict the People’s Republic of China’s ability to both purchase and manufacture certain high-end chips used in military applications and build on prior policies, company-specific actions, and less public regulatory, legal, and enforcement actions taken by [the Bureau of Industry and Security,” the Commerce Department said.

Shares of AMD, Intel and Lam Research were also lower.

ARK Investment Management’s Cathie Wood says the Federal Reserve is focusing on the wrong economic data, resulting in a “policy error that will cause deflation.”

“The Fed seems focused on two variables that, in our view, are lagging indicators –– downstream inflation and employment –– both of which have been sending conflicting signals and should be calling into question the Fed’s unanimous call for higher interest rates,” Wood said.

The ARK CEO said commodity prices, which are leading indicators, have peaked and, except for food and energy, are falling on a year-over-year basis.

“Without question, food and energy prices are important, but we do not believe that the Fed should be fighting and exacerbating the global pain associated with a supply shock to agriculture and energy commodities caused by Russia’s invasion of Ukraine,” Wood said.

Vehicle drives down a flooded street as Hurricane Ian drenches the city on Sept. 30, 2022 in Charleston, S.C. (Scott Olson/Getty Images)

CARFAX estimates flooding from Hurricane Ian potentially damaged as many as 358,000 vehicles in Florida and the Carolinas.

"We are seeing these flooded cars show up all around the country, putting unsuspecting buyers at risk," said Emilie Voss, CARFAX spokesperson. "Cosmetically these cars might look great, but if you don't know what to look for, it's nearly impossible to tell they are literally rotting from the inside out."

The online vehicle history provide lists seven telltale signs of flooding:

• A musty odor in the interior, which sellers sometimes try to cover with a strong air-freshener

• Upholstery or carpeting that may be loose, new, stained or that doesn't match the rest of the interior

• Damp carpets

• Rust around doors, under the dashboard, on the pedals or inside the hood and trunk latches

• Mud or silt in the glove compartment or under the seats

• Brittle wires under the dashboard

• Fog or moisture beads in the interior lights, exterior lights or instrument panel

HURRICANE IAN HAS INSURANCE CRIME EXPERTS WARNING CAR-BUYERS OVER FLOOD-DAMAGED VEHICLES

American Airlines Boeing 737 (Photo: American Airlines)

American Airlines is investing in green hydrogen. The world’s largest airline by market share announced a strategic equity investment in Universal Hydrogen, a company building a green hydrogen distribution and logistics network for aviation.

American joins Airbus Ventures, GE Aviation and Toyota Ventures, as well as several major hydrogen producers and aircraft lessors, as strategic investors in Universal Hydrogen.

Universal Hydrogen anticipates starting hydrogen deliveries for regional aircraft in 2025, with plans to expand its services to larger, single aisle aircraft — first for auxiliary power in the late-2020s and then as a primary fuel by the mid-2030s.

The investment supports American’s science based targets to reduce greenhouse gas (GHG) emissions by 2035, and ultimately its commitment to achieve net zero GHG emissions by 2050.

Alphatec Holdings opened 7% higher in Monday trading and extended gains. The provider of spine surgery solutions raised its full year 2022 revenue guidance and released selected preliminary third quarter 2022 results.

The medical technology company now expects full year 2022 revenue growth to approximate 40% compared to the 34% growth expectation provided in previous guidance.

Third quarter 2022 total revenue is expected to grow 42% to 43% year over year to $89 to $90 million.

Procedural volume growth exceeded 30% and drove organic revenue growth of 51% to 53% to $78 to $78.8 million.

Alphatec closed the third quarter with a cash balance of approximately $106 million.

ECONOMY

Nobel prize in economics awarded to trio including former Fed Chair Ben Bernanke

The award to Bernanke cited a 1983 publication establishing bank failures as key to the transformation of an economic recession into the most severe depression of the 20th century.

Former Federal Reserve Chairman Ben Bernanke, who steered the U.S. economy through the financial crisis of 2008, is one of three Americans to nab the prestigious Nobel Laureate in economics. 

Kanye West at the 2016 MTV Video Music Awards in New York, Aug. 28, 2016. (Reuters/Lucas Jackson)

Kanye West's Twitter and Instagram accounts were restricted over the weekend, with the social media platforms saying they removed the rapper's posts after online users condemned them as anti-Semitic.

He was first locked out of his Instagram by Facebook parent Meta Platforms Inc on Friday after which he took to Twitter, where he tweeted on Saturday for the first time in two years.

The step by Twitter Inc to lock the rapper's account was noteworthy because billionaire Elon Musk, who has said he would buy Twitter and calls himself a free speech absolutist, had welcomed West's return to the platform and replied to a post by the rapper tweeting: "Welcome back to Twitter, my friend!"

Before he took to Twitter early on Saturday, West, who has legally changed his name to Ye, had his Instagram account suspended after a since-removed post in which he invoked anti-Semitic tropes, accusing a musician of being controlled by "the Jewish people."

The company said on Saturday temporary restrictions on posting, commenting and messaging were imposed on West's Instagram account.

The suspension comes days after German sporting goods maker Adidas said it has put under review its business partnership with West.

KANYE WEST ERUPTS AFTER ADIDAS PUTS YEEZY PARTNERSHIP 'UNDER REVIEW' FOLLOWING 'WHITE LIVES MATTER' STATEMENT

ECONOMY

Online holiday shopping sales to reach $209.7B this year: Adobe

Online shopping sales are expected to reach $209.7 billion this holiday season amid inflation and rising borrowing costs, Adobe projected Monday.

Online shoppers are expected to spend this year but the tally may be impacted by rising costs, according to a new Adobe survey.

We'll get more insight as Amazon holds its second Prime Day of the year starting tomorrow bringing marking an even earlier start to the holiday shopping deals.

Bitcoin, Ethereum and Dogecoin were all lower hours before markets opened in the U.S. (Getty Images)

Cryptocurrency prices for Bitcoin, Ethereum and Dogecoin were all lower early Monday. 

At approximately 5:15 a.m. ET, Bitcoin was trading at nearly $19,250 (-0.93%), or lower by $180. 

For the week, Bitcoin was trading higher by nearly 1.8%. For the month, the cryptocurrency was lower by nearly 9%. 

Ethereum was trading at approximately $1,307 (-1.16%), or lower by more than $15. 

For the week, Ethereum was trading higher by  3.3%. For the month, it was trading lower by approximately 23%. 

Dogecoin was trading at $0.060651 (-2.49%), or lower by approximately $0.001612. 

 For the week, Dogecoin was higher by nearly 5%. For the month, the crypto was lower by nearly 3%.

Gasoline and diesel prices edged higher early Monday morning. (gasprices.aaa.com)

Gasoline prices nationwide moved higher early Monday morning rising nearly a penny to $3.919. The price on Sunday was $3.91, rising from Saturday’s $3.904.

Gasoline prices had dropped for several weeks after reaching an all-time high of $5.01 on June 14, approximately 17 weeks ago, before starting to rise once again almost two weeks ago.

One weeks ago, the average price of a gallon of gasoline nationwide was $3.799. One month ago, that same gallon of gasoline cost $3.724. On year ago, a gallon of gasoline cost $3.269.

 Diesel prices nationwide Monday morning were $5.064. A gallon of diesel on Sunday cost $5.03. On Saturday, that same gallon of diesel cost $4.985.

One week ago, a gallon of diesel cost $4.870. One month ago, a gallon of diesel cost $5.017. One year ago, a gallon of diesel cost $3.46.

Electric-vehicle startup Rivian Automotive Inc. is suing a key supplier of seats, warning that a pricing dispute could impact production of an electric van ordered by Amazon.com Inc. (Photo by Justin Sullivan/Getty Images)

Rivian Automotive announced on Friday it is recalling almost all the vehicles it has delivered to customers in order to tighten a loose fastener.

The electric truck and SUV maker  said the problem could potentially affect drivers' ability to steer.

The recall involves 13,000 vehicles because a fastener connecting the vehicles' front upper-control arm and steering knuckle may not be torqued enough.

There have been seven reports potentially related to the issue, but no injuries have been reported, Rivian said.

"If you experience excessive noise, vibration or harshness from the front suspension, or a change in steering performance or feel, you should call immediately," Rivian CEO RJ Scaringe wrote in a letter to vehicle owners.The company says it is a quick fix and expects to have finished the repairs on all of them in about 30 days.The company, which was founded in 2009, is aiming to take advantage of a growing appetite among consumers and investors for electric vehicles.

Rivian is among a long line of companies, both new and old, trying to peel away market share from Tesla.

It went public last year, and its market value quickly soared past that of Ford and General Motors, but has since come back to earth.In May, Ford trimmed its stake in the company, selling 15 million shares.Rivian's stock is down 67% so far this year.

Amazon has ordered a total of 100,000 electric delivery vans which will be delivered by 2030.

By the end of 2022, Amazon and Rivian's electric delivery vans will hit the road in more than 100 cities.

Investors are waiting for the latest consumer price index and other reports later this week to gauge the economy. (Associated Press)

U.S. stocks were lower heading into Monday morning as investors await key economic and consumer prices report this week.

Friday marked another dismal end to the week on Wall Street as a strong U.S. jobs report added to worries the Federal Reserve might consider the higher-than-expected hiring data as proof the economy hasn’t slowed enough to get inflation under control.

That might mean still more hefty rate hikes that could make a recession more likely. 

A U.S. consumer prices report on Thursday will be one of the biggest factors for markets this week. Investors also are awaiting the latest updates on how companies are dealing with higher prices and interest rate hikes. 

On Friday, the S&P 500 fell 2.8%, ending with a 1.5% gain for the week, its first weekly gain in four weeks. The Dow Jones Industrial Average skidded 2.1% , while the Nasdaq tumbled 3.8%. The Russell 2000 index fell 2.9%, to 1,702.15. 

The government report showing employers hired more workers last month than economists expected might clear the way for the Fed to continue hiking interest rates aggressively, something that risks causing a recession if done too severely. 

Employers added 263,000 jobs last month, less than the hiring pace of 315,000 in July, but still more than the 250,000 that economists expected. 

Stocks have tumbled over 20% this year from record highs this year on worries about inflation, interest rates and the possibility of a recession. 

By hiking interest rates, the Fed is hoping to starve inflation of the purchases needed to keep prices rising even further. The Fed has already seen some effects, with higher mortgage rates hurting the housing industry in particular. But if the rate hikes go too far, that could squeeze the economy into a recession. 

Beyond higher interest rates, analysts say the next hammer to hit stocks could be a potential drop in corporate profits. Companies are contending with high inflation and interest rates eating into their earnings, while the economy slows. 

Meanwhile, Asian shares slipped on Monday, with Chinese markets logging moderate losses after reopening from a weeklong holiday to news of a fresh set of lockdowns due to rising COVID-19 cases. Markets were closed Monday in Tokyo, Taiwan and South Korea.

The Hang Seng in Hong Kong fell 2.8% to 17,249.33 while the Shanghai Composite index shed 1.7% to 2,974.15.. Bangkok's SET lost 1% and India's Sensex gave up 0.2%. 

Chinese cities were imposing more lockdowns and travel restrictions after the number of new daily COVID-19 cases tripled during a weeklong holiday, ahead of a major Communist Party meeting in Beijing next week. 

China is one of the few places still resorting to harsh measures to keep the disease from spreading. The long-ruling Communist Party is particularly concerned as it tries to present a positive image of the nation in the run-up to a once-in-five-years party congress that starts Sunday.

The strict “zero-COVID” approach has taken an economic toll, particularly on small businesses and temporary workers. Many in China hope the pandemic policy will ease after the meeting.

A slowdown in China's service activities has caused oil prices to drop overnight. (Getty Images)

Oil prices fell on Monday, snapping five days of gains, as investors took profits after a report on slowing economic activity in China, the world's biggest crude importer, re-ignited concerns about falling global fuel demand. 

Brent crude futures for December settlement fell by as much as 1.1%, and was last down 39 cents, or 0.4%, at $97.53 a barrel by 0645 GMT. 

West Texas Intermediate crude for November delivery declined by as much as 1.1% and was last at $92.27 a barrel, down 37 cents, or 0.4%. 

Services activity in China during September contracted for the first time in four months as COVID-19 restrictions hit demand and business confidence, data showed on Saturday. 

The slowdown in the economy of China, the world's second-largest oil consumer after the U.S., adds to growing concerns about a possible global recession triggered by numerous central banks raising interest rates to combat high inflation rates.

"Oil ... is getting hit with the triple whammy of China's economic weakness, U.S. monetary policy tightening and Biden administration SPR intervention," Stephen Innes, managing director at SPI Asset Management, said in a note. 

Innes was referring to the possibility of additional releases from the U.S. Strategic Petroleum Reserve next month in response to the decision last week by the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, known as OPEC+, to lower their output target by 2 million barrels per day.

Brent and WTI posted their biggest weekly percentage gains since March after the reduction was announced.

The OPEC+ cuts, which come ahead of a European Union embargo on Russian oil, will squeeze supply in an already tight market. EU sanctions on Russian crude and oil products will take effect in December and February, respectively."The cut is clearly bullish," ING analysts said in a note.

"However, there is obviously still plenty of other uncertainty in the market, including how Russian oil supply evolves due to the EU oil ban and G-7 price cap, as well as the demand outlook given the deteriorating macro picture.

"Analysts at banks and brokerages have raised their crude price forecasts and expect Brent to rise above $100 a barrel in the coming months.Despite the promised cuts in output, Saudi Arabian state oil company Saudi Aramco has told at least five North Asian customers they will receive full contract volumes of crude oil in November, according to sources with knowledge of the matter.

That would indicate little change in the physical supply of oil at least to Asian buyers of crude from Saudi Arabia, who as OPEC's biggest producer will assume a large portion of the announced reductions.