Page One
Briefing.com Summary:
*The equity futures market has a negative disposition that will translate into losses for the cash market at the open.
*The run to record highs on Friday is driving some consolidation interest.
*Apple (AAPL) is bucking the pre-market trend and continues to advance on iPhone 17 order enthusiasm.
Record highs for many of the indices on Friday are not going to be extended at today's open. The current disposition of the equity futures market suggests there will be some broad-based selling when the opening bell rings, although the initial losses will be relatively modest.
The S&P 500 futures are down 19 points and are trading 0.3% below fair value, the Nasdaq 100 futures are down 70 points and are trading 0.3% below fair value, and the Dow Jones Industrial Average futures are down 207 points and are trading 0.5% below fair value.
Some of the stock market's speculative impulse is being reined in by some broad-based selling activity in the cryptocurrency market that includes high single-digit percentage losses for some of the more widely held cryptocurrencies.
That factor aside, the stock market is also likely experiencing a profit-taking breather. In more technical terms, a consolidation trade is afoot after another sprint this month that has seen the S&P 500, Russell 2000, and Nasdaq Composite gain between 3.2% and 5.5%.
Thus far, the stock market has avoided the "seasonal bug," but with today's weakness, the seasonality chatter has naturally made its way into the narrative as a causal factor given that the back half of September has a history of being a weak period for the stock market.
There isn't any corporate news of note to move the market today, and there isn't any economic data of note. There has been a smattering of M&A activity.
- Pfizer (PFE) is buying Metsera (MTSR) for $47.50 per share in cash at closing. There is also a contingent value right whereby MTSR shareholders can see potential additional payments of up to $22.50 per share.
- Compass (COMP) is buying Anywhere Real Estate (HOUS) in an all-stock transaction valued at $13.01 per share.
- Premier (PINC) announced that it has entered into a definitive agreement to be acquired by an affiliate of Patient Square Capital for $28.25 per share in cash.
These stocks will move on their own accord, but it is evident that the broader market isn't seeing any real M&A ballast from these deals. Instead, it is being suppressed by a lack of leadership, some growth angst linked to the Trump administration's announcement of a one-time $100,000 H-1B visa fee for new petitions, and some buying lethargy.
The latter hasn't extended to Apple (AAPL), however, which is up another 1.0% in pre-market action following Friday's 3.2% gain that was rooted in iPhone 17 order enthusiasm.
