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Yields hit 24-year high, stocks rally
The first day of the fourth quarter was a tug-of-war between bonds and stocks, and stocks won — barely. The 10-year Treasury yield touched nearly 5.35% early Thursday, a fresh 24-year high, before retreating to about 5.25% in late-afternoon trading as buyers stepped back in. The S&P 500 climbed 0.2%, while the Nasdaq and Dow both finished fractionally higher and the Russell 2000 added 0.4%, bouncing off its 200-day moving average. All three major indexes had been in the red until early afternoon before the yield pullback gave dip-buyers the cover they needed. The benchmark index found support at its 50-day moving average along the way. Attention now shifts to Friday’s September jobs report: economists expect 84,000 jobs were added, down from 162,000 in August, with unemployment steady at 4.1%.
Sources: Investopedia · Investor’s Business Daily
Micron’s $54 billion quarter shrugs
Micron (MU) delivered the kind of quarter companies dream about — and the stock barely budged. The memory-chip maker reported fiscal fourth-quarter revenue of $54.23 billion, up 379% from $11.32 billion a year earlier and well above the roughly $51 billion analysts expected. Non-GAAP earnings of $33.42 a share topped estimates of about $31.6, while gross margin hit 87% — software-level profitability from a chipmaker. For the full fiscal year, revenue was $133.2 billion with non-GAAP EPS of $75.52, and management guided first-quarter 2027 revenue to $61.5 billion, also above consensus. The company now has 26 strategic customer agreements covering about 35% of revenue through 2030, with $32 billion in customer financial commitments. Shares slipped in early trading before erasing the losses to close higher — understandable after a run that has nearly quadrupled the stock this year and pushed Micron’s market value past $1.2 trillion. The market seems to have already priced in a $50-billion-plus quarter.
Sources: Investor’s Business Daily · Tickeron · Zacks
Accenture’s record day on AI bookings
Accenture (ACN) posted its best day ever as investors decided AI might be creating demand for its services rather than destroying it. The consulting giant earned $3.29 a share on $18.68 billion in fiscal fourth-quarter revenue, beating analyst estimates on both lines. New bookings hit $22.2 billion in the quarter — a 1.2 book-to-bill ratio — and a record $84.5 billion for the full year, including 141 client deals worth at least $100 million each. Management guided fiscal 2027 revenue growth of 3% to 6% in local currency with EPS of $14.39 to $14.81, and raised the quarterly dividend 5% to $1.71 a share. Shares surged more than 20% intraday, putting the stock on track for its biggest one-day gain on record — a stunning reversal for a name that entered the day having lost nearly a third of its value this year on AI-disruption fears. Jefferies noted that the guide “suggests it is not deteriorating as AI fears would have you believe.” Cognizant, IBM, and EPAM rallied in sympathy.
Sources: Investopedia · Motley Fool
Mattel jumps on $6B takeover bid
Mattel (MAT) was the day’s biggest takeover story. The Wall Street Journal reported that brand-licensing giant Authentic Brands Group has privately discussed an offer valuing the Barbie maker at more than $20 a share — roughly $6 billion or more. Shares surged nearly 19% in the regular session. Authentic Brands, known for acquiring and reviving distressed brands (recent deals include Lee and Guess), sees value in Mattel’s toy portfolio, which includes Barbie and Hot Wheels. The Journal noted there is no guarantee Mattel will accept, no formal sale process is currently underway, and another suitor could still emerge. The bid interest arrives a day after Mattel announced CEO Ynon Kreiz’s departure, with board member Roger Lynch set to take over as chairman and CEO. After falling about 4% Wednesday on the leadership news, Mattel’s stock got a very different reason to move on Thursday.
Sources: Reuters · Stocktwits
Factories grow, but prices surge
The morning’s economic data was a study in contrasts. The ISM manufacturing PMI registered 54.5 in September, the ninth straight month of expansion, though slightly below the 54.6 August reading and the 55.0 economists expected. New orders strengthened to 55.3, the backlog jumped 4.6 points to 56.4, and employment rose to 52.7. But the prices index surged 6.8 points to 77.9, signaling a notable acceleration in manufacturing price growth — hot enough to keep the Fed cautious. The labor side looked resilient too: weekly jobless claims fell to 197,000, a fourth straight weekly decline that points to very few layoffs. Energy added its own inflation flavor: West Texas Intermediate crude rose nearly 3% to about $92.90 a barrel after Reuters reported that China’s state-owned PetroChina canceled some gas and jet fuel shipments due in October. Growth is holding; the price tag is rising.
Sources: PR Newswire (ISM report) · Investor’s Business Daily
Market recap for information only — not financial advice.
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