MARKET SNAPSHOT
U.S. stocks finished higher as the DJIA briefly jumped above 36000. The yield on the 10-year Treasury note rose to 1.591%, compared with 1.555% on Friday. The WSJ Dollar Index fell 0.12% to 88.28. U.S. oil futures ended higher with OPEC+ expected to keep its current output deal in place this week. Gold futures ended higher, but the $1,800 level stayed out of reach as investors eye this week's Fed meeting.
MARKET WRAPS
EQUITIES
U.S. stocks continued a weekslong march higher, a display of investor confidence in the economy's bumpy recovery.
The Dow Jones Industrial Average closed up 0.3% -- briefly jumping above 36000 for the first time in the first 15 minutes of trading. The S&P 500 finished 0.2% higher, after the index closed out October with its best monthly performance since November 2020. The technology-focused Nasdaq Composite advanced 0.6%. All three indexes were at record levels.
Companies that have reported earnings so far have signaled solid customer demand. That has assuaged some investors' concerns about supply-chain disruptions and rising prices.
The Nikkei Stock Average closed 6.7% higher, led by electronics shares, as the ruling Liberal Democratic Party's election victory on Sunday increased the prospect of political stability.
Chinese stocks finished mixed, as investors reacted to companies' recent quarterly earnings results. The Shanghai Composite Index dropped 0.1%, the Shenzhen Composite Index was 0.5% higher, and the ChiNext Price Index shed 0.6%.
Elsewhere, New Zealand's NZX-50 closed a light-volume session 0.5% lower after broad losses. The main drags on the index were Mainfreight, which continued to retreat from recent highs, power utilities and Auckland International Airport after it flagged debt-raising plans.
And Australia's S&P/ASX 200 index recovered from an early wobble to close 0.6% higher, despite Westpac's biggest one-day decline since March 2020. Most sectors showed gains as the ASX 200 followed U.S. stocks' positive lead from the end of last week. The financials sector was dragged lower by a 7.4% drop from Westpac, its largest loss since the early days of the Covid-19 pandemic.
COMMODITIES
Oil futures kicked off November with a gain after hitting multiyear highs last month, as investors expect the Organization of the Petroleum Exporting Countries and their allies to remain reluctant to accelerate production increases despite tightening crude supplies.
West Texas Intermediate crude for December delivery rose 0.6% to settle at $84.05 a barrel on the New York Mercantile Exchange. The U.S. benchmark rose 11% in October, but lost 0.9% last week, ending a streak of nine straight weekly gains. January Brent crude, the global benchmark, added 1.2% to $84.71 a barrel on ICE Futures Europe.
Gold futures settled higher, but remained below the key $1,800 mark as investors weighed the latest reading on the U.S. manufacturing sector ahead of this week's Federal Reserve meeting and monthly nonfarm payrolls data.
December gold rose 0.7% to settle at $1,795.80 an ounce on Comex, after trading as high as $1,797.50.
TODAY'S TOP HEADLINES
Biden Administration Targets Stablecoin Digital Currency for Banklike Oversight
WASHINGTON-The Biden administration on Monday took the first significant step to impose banklike oversight on the cryptocurrency companies involved in the issuance of stablecoins, outlining a process that could shape the future of that digital money.
A Treasury-led panel recommended that Congress impose a new regulatory framework around stablecoins-digital currencies pegged to national currencies like the U.S. dollar-and limit the issuance of such digital assets to banks. The legislative request is a tall order given both chambers of Congress are narrowly divided.
In the absence of congressional action, the panel recommended that a broader group of regulators charged with detecting risks to the financial system-the Financial Stability Oversight Council-consider whether to designate certain stablecoin activities as systemically important. Such a process could ultimately lead to the Federal Reserve writing more-stringent risk-management standards for stablecoin companies.
Rivian Automotive Targets IPO Valuation Just Above $60 Billion
Rivian Automotive Inc. is seeking a valuation in the low-$60s-billion range in its initial public offering next week, one of the biggest and most-anticipated deals yet in a blockbuster year for new issues.
The Amazon.com Inc.-backed electric-vehicle startup plans to disclose the targeted valuation in an updated regulatory filing later Monday, according to people familiar with the matter. The roadshow for company management and their underwriters to pitch the shares to potential investors begins Tuesday, and the shares are to start trading on the Nasdaq Stock Market next week under the symbol RIVN.
The valuation could shift by then based on investor feedback and market conditions.
American Airlines Cancels Hundreds More Flights
American Airlines Group Inc. canceled hundreds of additional flights on Monday, extending its weekend troubles as it struggles to meet growing travel demand with a staff reduced in size because of the Covid-19 pandemic.
The airline said it canceled 340 flights as of 11 a.m. ET on Monday, amounting to about 6% of its total flights. The airline scrubbed more than 1,900 flights over the weekend.
American said staffing shortages and bad weather-such as high winds in Dallas, where the carrier is based-drove the cancellations.
Barclays CEO Jes Staley Steps Down Amid Pressure Over Jeffrey Epstein Ties
Jes Staley stepped down as chief executive of Barclays PLC under pressure from regulators about how he characterized his relationship with the convicted sex offender and financier Jeffrey Epstein.
Barclays said Mr. Staley stepped down "in view of the conclusions" made by U.K. regulators in its long-running investigation into what Mr. Staley told the bank about his association with Epstein and what it told regulators about the relationship. Barclays shares fell 0.7% Monday.
The probe concluded that Mr. Staley provided an incomplete picture of his relationship with Epstein, which the board passed on to the regulator, according to people familiar with the investigation.
Apple Wants iPhones to Detect Car Crashes, Auto-Dial 911
Beginning next year, iPhone users who are in a car accident could have their phone dial 911 automatically.
Apple Inc. plans next year to roll out a product feature called "crash detection" for iPhones and Apple Watches, according to documents reviewed by The Wall Street Journal and people familiar with the feature.
Crash detection uses data from sensors built into Apple devices including the accelerometer to detect car accidents as they occur, for instance by measuring a sudden spike in gravity, or "g," forces on impact.
Coke to Pay $5.6 Billion for Full Control of BodyArmor
Coca-Cola Co. is buying full control of BodyArmor for $5.6 billion in a cash deal that values the sports-drink brand at about $8 billion, amping up a rivalry with Gatorade.
Coke, which already owns a stake in BodyArmor, announced the deal Monday, confirming a report Sunday by The Wall Street Journal and recent reporting from other outlets. Earlier this year, Coke disclosed it was in talks to take a controlling stake in BodyArmor.
Coke bought a 15% stake in BodyArmor in 2018 for $300 million at a $2 billion valuation, according to people familiar with the matter. Coke's bottling network then took over distribution of BodyArmor, earning the beverage giant an additional 15% equity stake for its distribution and partnership in building the BodyArmor brand, the people said.
COP26 ROUNDUP ############### ###############
At COP26, Biden Calls for Climate Action Amid Wide Divisions
GLASGOW-President Biden said the COP26 summit kicks off a "decisive decade" for combating climate change, as world leaders here confront still-large gaps over how to slash emissions quickly enough to avoid the most destructive effects of global warming.
Speaking to leaders and government officials from most of the world's nations, Mr. Biden warned that "none of us can escape the worst that is yet to come if we fail to seize this moment." But he said there is still time to improve the trajectory.
The United Nations summit opened Monday, a day after leaders of the Group of 20 major economies made little progress over the weekend hammering out specific climate goals many had hoped would ease discussions in Scotland. Leaders reached a deal to end financing of coal-burning power plants overseas that aren't equipped with technology to capture and store carbon dioxide emissions. But they didn't agree on targets for phasing out fossil fuel subsidies or their dependence on coal, one of the biggest sources of carbon-dioxide emissions.
Biden's Glasgow Challenge Is to Convince World That U.S. Can Lead on Climate
President Biden heads to the climate summit in Glasgow aiming to show that the U.S. is ready to take a leadership role on global warming, but with few concrete options for rallying international support for the tough measures scientists say are needed.
The summit, which is sponsored by the United Nations and begins Sunday, provides a stage for world leaders to pledge their national commitments to stem global warming. They are also expected to wrangle over an array of thornier issues, including who should bear the biggest burden for cutting emissions.
Expected Major Events for Tuesday
00:30/PHI: Oct Philippines Manufacturing PMI
03:30/AUS: Nov Australian cash rate decision
08:30/HK: Sep Retail Sales
13:00/SIN: Oct Singapore Purchasing Managers' Index (PMI)
21:00/SKA: Oct International Reserves
21:30/AUS: Oct Australian PCI
21:45/NZ: 3Q Household Labour Force Survey
21:45/NZ: 3Q Labour Cost Index (Salary & Wage Rates)
21:45/NZ: 3Q Quarterly Employment Survey
22:00/AUS: Oct Australia Services PMI