Weekly Recap

• Fractional gains for the week. The market saw small gains and losses on Friday, but it was enough to push the S&P 500 and the Dow just above the record highs they set the previous week. The NASDAQ ended up 2.7% below the record high that it set three months ago. The S&P 500 is up 20% year-to-date and stands near record highs. The S&P 500 saw its tenth positive month out of the past eleven. 
• Strong U.S. labor market growth. Labor market data on Friday came in far above expectations. The U.S. economy generated 254,000 new jobs in September, exceeding economists’ consensus forecast for around 140,000 and delivering the strongest result in six months.
• 2-year yield soared. The yield of the 2-year Treasury note rose sharply last week. The yield jumped from 3.70% at Thursday’s close to 3.92% on Friday; at the end of the previous week, the yield was 3.56%. 
• Oil prices skyrocketed. The price of U.S. crude oil jumped about 9% for the week to nearly $75 per barrel on Friday afternoon as tension in the Middle East continued to mount. Friday’s price was the highest since late August, but it remained well below a recent high of around $83 in early July. As of Friday afternoon, energy sector stocks were up an average 7% for the week.
• Big earnings ahead. Major U.S. banks are preparing to open quarterly earnings season on Friday, October 11. Analysts expect that third-quarter earnings per share for companies in the S&P 500 rose by an average of 4.2%, according to FactSet. Such an outcome would mark the fifth consecutive quarter of year-over-year earnings growth. Major financial firms highlight next week's earnings reports, with JP Morgan Chase, Wells Fargo, and BlackRock due on Oct 11.
• Anticipated Consumer Price Index. The report scheduled for release on Thursday will show whether the recent cooling trend for inflation extended into September.
• Port troubles aren't over. The U.S. ports strike suspension, with the International Longshoreman’s Association union and USMX ownership group reaching a deal on wage increases, still leaves the contentious issue of port automation to resolve by Jan. 15th. 
• More interest rate cuts may be delayed. The strong jobs report last week virtually eliminated any chance that the Federal Reserve would be repeating its half percentage point interest rate cut from September anytime soon.
• Bitcoin and crypto crashed. Bitcoin and crypto prices crashed after BlackRock's chief executive issued a "crazy" Federal Reserve warning.
• Gold prices dropped. Gold prices slipped on Friday after a stronger-than-expected U.S. jobs report pummeled hope for an aggressive rate cut from the Federal Reserve next month, boosting the dollar. Spot gold was down 0.2% at $2,649.69 per ounce by 01:57 p.m. EDT (1757 GMT), after touching a record high of $2,685.42 last week.

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Friday's jobs report "is a potential game changer for the Fed and market expectations on the size and pace of future rate cuts," BMO economists wrote. "It also is a big upside risk to our consumer spending and GDP growth forecasts in the near-term."

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Most Active Stocks

• Netflix (NFLX)
• Allbirds, Inc. (BIRD)
• Etsy (ETSY)
• Technoglass, Inc. (TGLS)
• Novavax, Inc. (NVAX)

Biggest Gainers

• JetBlue Airways (JBLU) +14.24%
• EVgo, Inc. (EVGO) +13.92%
• Barnes Group, Inc. (B) +12.98%
• WuXi Biologics (WXXWY) +14.50%
• AST SpaceMobile (ASTS) +12.45%

Biggest Losers

• Coeur Mining, Inc. (CDE) -9.46%
• Novavax, Inc. (NVAX) -5.62%
• Floor & Decor Holdings, Inc. (FND) - 5.29%
• Axsome Therapeutics, Inc. (AXSM) -5.03%
• The Aztek Company, Inc. (GL) -5.01%

Weekly Notables

Analyst Calls for a Big Drop in Bitcoin and Crypto

Cryptocurrency trader, Capo, has forecasted potential significant declines for Bitcoin BTC/USD and Ethereum ETH/USD. The trader has a large following on the social media platform X and has predicted that Bitcoin might test the $48,000 to $50,000 range, while Ethereum could fall to between $1,800 and $2,000. "There's a possibility of one last shakeout, with BTC testing the $48,000 – $50,000 zone and ETH $1,800 – $2,000, before the real altcoin season begins."

Vista Outdoor Agrees to Sell Itself to Two Buyers for $3.4B

Vista Outdoor on Friday agreed to sell itself in parts to two separate buyers for a total of $3.35 billion, including debt. The company struck a deal to sell its sporting goods unit, Revelyst, to investment firm Strategic Value Partners for $1.1 billion, according to a statement seen by Reuters.

The company has also agreed to revise the terms of a previously agreed deal to sell its ammunitions business Kinetic to Prague-based defense contractor Czechoslovak Group (CSG). CSG has raised its offer for Kinetic by $75 million to $2.2 billion. The two deals value Vista at $45 per share, topping a rival $43 per share offer from MNC Capital.

The Week Ahead

• Potential market moving catalysts this week: The consumer credit report from the U.S. Federal Reserve is due out on Monday. On Tuesday the Small Business Optimism Index from the National Federation of Independent Business will be released as well as trade balance data from the U.S Census Bureau. On Wednesday the release of minutes from the U.S. Fed meeting from September 17-18th will be out. Wednesday will also show wholesale inventories from the U.S Census Bureau. Thursday's data will be the anticipated Consumer Price Index from the U.S. Bureau of Labor Statistics and the weekly unemployment claims from the U.S. Department of Labor as well as the federal budget from the U.S. Department of the Treasury. On Friday the Producer Price Index will be out from the U.S. Bureau of Labor Statistics and the University of Michigan Index of consumer sentiment preliminary. 
• Earnings on deck this week include: The Duckhorn Portfolio, PepsiCo, Accolade, Helen of Troy, Delta Airlines, Tilray, Domino's Pizza, Neogen, JPMorgan Chase, BlackRock, and Wells Fargo.

Earnings Spotlight: PepsiCo 

PepsiCo will be releasing its third-quarter results ahead of the bell on Tuesday morning. For PepsiCo's third quarter, analysts currently forecast earnings of $2.29 per share, up 1.8% year-over-year (YoY), on revenue of $23.8 billion (+1.7% YoY). BofA Securities analyst Bryan Spillane says analysts' Q3 estimates for PepsiCo are being revised lower to reflect weaker-than-anticipated demand at Frito-Lay North America and Pepsi Beverages North America. Spillane anticipates "the market to be less focused on results and more on the 'State of the Union' for the industry and how PEP is navigating." The beverage giant made news recently when it announced that it is buying Mexican-American food company Siete Foods for $1.2 billion.