The long month of September is finally drawing to a close. It\u2019s often a poor month for stocks, and this year was no exception.<\/p>\n
Here\u2019s a few figures that can quantify the pain.<\/p>\n
6%.<\/strong> That\u2019s how much the Nasdaq Composite has dropped in September, a second straight month of declines. It\u2019s on track for the worst two-month performance since the same period last year. And we all remember what 2022 was like.<\/p>\n The S&P 500 and the Dow are also down in September, but the Nasdaq has absorbed the biggest hit. Blame technology stocks. The S&P\u2019s information technology index fell more than 7% this month, making it one of the worst performing sectors.<\/p>\n 4.6%.<\/strong> That\u2019s how high the yield on the 10-year Treasury reached by the end of the month\u2013the 10-year yield climbed about twice as much as the 2-year over the past 30 days. That reflects the repricing toward higher-for-longer Federal Reserve interest rates, and goes hand in hand with high-growth tech stocks taking a beating. <\/p>\n Traders haven\u2019t changed their expectations for the peak in Fed rates much, but they do expect fewer cuts down the road than they did at the start of the month. On the plus side, it means that the yield curve inversion\u2013often seen as a recession signal\u2013has narrowed.<\/p>\n 14 Years.<\/strong> The yield on inflation-protected 10-year government bonds is around the highest since 2009. That shows investors are willing to pay up for protection and that inflation could be sticky.<\/p>\n 7.<\/strong> Here\u2019s the good news. The S&P 500 has gained in seven of the past 10 years in October, suggesting that if September is a poor season for stocks, it gets better the following month.<\/p>\n Maybe Thursday\u2019s late rally was the start of a turnaround.<\/p>\n \u2014Brian Swint<\/em><\/p>\n *** Join OPIS Energy Insights with journalist Jessica Marron and analysts Denton Cinquegrana and Tom Kloza today at noon when they discuss what the rise in crude oil prices mean for home heating costs and examine the outlook for natural gas, heating oil, and propane prices. Sign up here.<\/em><\/p>\n The government sued electric vehicle maker What\u2019s Next:<\/strong> The EEOC said it attempted to reach a settlement with Tesla before filing the lawsuit. It wants compensatory and punitive damages and back pay for affected employees, and it wants to see changes to Tesla\u2019s employment practices.<\/p>\n \u2014Liz Moyer<\/em><\/em><\/p>\n Actors striking in Hollywood plan to return to the negotiating table on Monday, resuming talks with studios after the Writers Guild of America reached a new contract and ended their 148-day walkout. The union, SAG-AFTRA, said entertainment executives will attend the contract talks.<\/p>\n What\u2019s Next:<\/strong> SAG-AFTRA members have voted to authorize a strike against 10 videogame companies. Its last strike against the gaming industry was in 2016-17 and lasted 183 days, according to Deadline. <\/p>\n \u2014Liz Moyer and Connor Smith<\/em><\/em><\/em><\/em><\/p>\n Beijing proposed easing rules on cross-border data flows Friday which boosted technology and electric-vehicle stocks.<\/p>\n What\u2019s Next:<\/strong> The cyberspace regulator\u2019s proposal is being seen as a move to boost business activity in the world\u2019s second-largest economy. It is particularly good news for China\u2019s multinational companies.<\/p>\n \u2014Callum Keown<\/em><\/em><\/p>\n \n Nike What\u2019s Next:<\/strong> For the full year, Nike continues to expect revenue to grow in the mid-single digits. Analysts are currently forecasting 4% revenue growth. Gross margins are still expected to expand 1.4 to 1.6 percentage points, the company said.<\/p>\n \u2014Sabrina Escobar<\/em><\/em><\/em><\/em><\/p>\n \n Costco Wholesale What\u2019s Next:<\/strong> More Millennial investors have a built a holding in gold than other generations, at 17%, according to State Street\u2019s chief gold strategist George Milling-Stanley. That compares to about 10% of Baby Boomers and Generation X. Millennials also tend to like investing in gold through exchange-traded funds, he said.<\/p>\n \u2014Liz Moyer and Sabrina Escobar<\/em><\/em><\/em><\/p>\n <\/p>\n Do you remember this week\u2019s news? Take our quiz below to test your knowledge. Tell us how you did in an email to thebarronsdaily@barrons.com.<\/em><\/p>\n 1. The Writers Guild of America voted to return to work on Wednesday, Sept. 27, after ending a strike against Hollywood studios and streaming companies. How long did their strike last?<\/p>\n a. 128 days<\/p>\n b. 138 days<\/p>\n c. 148 days<\/p>\n d. 158 days<\/p>\n 2. a. Google<\/p>\n b. 3. Airlines are among the many industries that could be disrupted by a federal government shutdown this weekend if Congress can\u2019t approve a funding extension. The U.S. Travel Association estimates a shutdown could cost the travel industry how much?<\/p>\n a. $120 million a day<\/p>\n b. $140 million a day<\/p>\n c. $120 million a week<\/p>\n d. $140 million a week<\/p>\n 4. The United Auto Workers have threatened to expand strikes a second time if they don\u2019t make progress in labor contract negotiations with which two auto makers?<\/p>\n a. d. 5. Oil prices are on a tear. Brent crude reached $97 a barrel, and West Texas Intermediate touched $95 a barrel this week, the highest price since when?<\/p>\n a. August 2022<\/p>\n b. June 2022<\/p>\n c. February 2022<\/p>\n d. November 2021<\/p>\n Answers: 1(c); 2(a); 3(b); 4(c); 5(a)<\/p>\n<\/h4>\n
***<\/h4>\n
Tesla Faces Federal Lawsuit Over EEOC Racial Harassment Claims<\/h2>\n
\n Tesla
\n for tolerating racial harassment of Black employees at its California assembly plant, including retaliation for workers who opposed the harassment. The Equal Employment Opportunity Commission filed the suit in California federal court.<\/p>\n\n
***<\/h4>\n
Actors Will Return to Bargaining Table Monday in Hollywood Strike<\/h2>\n
\n
\n CEO Bob Iger and
\n Netflix
\n co-CEO Ted Sarandos met with WGA negotiators over the summer. WGA members will vote on their new tentative contract next week, and it could lay the groundwork<\/strong> for a quick resolution to the actors\u2019 strike.<\/p>\n<\/li>\n***<\/h4>\n
China to Ease Cross-Border Data Rules to Boost Business<\/h2>\n
\n
***<\/h4>\n
Nike Reports Lower Inventory, Higher China Sales<\/h2>\n
\n \u2018s fiscal first-quarter revenue was below expectations but investors focused on lower inventory levels, which should help profit margins, and rising sales in China, which is one of the apparel maker\u2019s largest markets. <\/p>\n\n
\n Foot Locker
\n and
\n Dick\u2019s Sporting Goods
\n both cut their full-year outlooks after lackluster second-quarter results.<\/p>\n<\/li>\n<\/ul>\n***<\/h4>\n
\n Costco
\n Members Snap Up Gold Bars Sold Online<\/h2>\n
\n is a go-to place for shoppers who want rotisserie chickens and giant packages of toilet paper, but the retailer has discovered another hot commodity: 24-karat gold bars. They\u2019ve been selling out quickly on its website. The wholesale club\u2019s members can\u2019t get enough.<\/p>\n\n
\n Walmart
\n is also selling gold bars from Pamp. Costco\u2019s website said the items are not refundable<\/strong>, and Walmart\u2019s says they aren\u2019t returnable.<\/p>\n<\/li>\n***<\/h4>\n
\n Amazon
\n is investing up to $4 billion in Anthropic, an artificial intelligence research firm that\u2019s a rival to OpenAI\u2019s ChatGPT. Which of Amazon\u2019s competitors in cloud computing also invested this year in Anthropic?<\/p>\n
\n Microsoft
\n
c.
\n Oracle
\n
d. None of the above<\/p>\n
\n Ford Motor
\n and
\n Stellantis
\n
b. Ford Motor and
\n Toyota
\n
c.
\n General Motors
\n and Stellantis<\/p>\n
\n Honda
\n and General Motors<\/p>\n