US Stocks Close Higher Amid Shutdown Deal Hopes; Expedia Soars

Market Close and Shutdown Hopes

• 📈 US stocks experienced a late-day boost, turning positive as hopes emerged that lawmakers are nearing a deal to end the longest government shutdown in American history.
• 💡 The S&P 500 finished up 0.1%, and the Dow Industrials gained 0.2%, while the Nasdaq remained slightly lower due to pressure from big tech.
• ✈️ Airline stocks, which had been down significantly, rallied sharply, with some up 3.8% from session lows, driven by optimism that an end to the shutdown could lead to a return to normal flight schedules.

Economic Data and Market Sensitivity

• ⚠️ The US payrolls report was not released due to the government shutdown, highlighting the impact on economic data dissemination.
• 📊 A survey by 22V Research indicated that a labor-market unwind is the biggest risk to trading, explaining the sensitivity of risk assets and bond yields to related news.
• 📉 Corrugated box shipments fell to their lowest third-quarter reading since 2015, stoking fears of a weak holiday retail shopping season as uncertainty weighs on retailers and consumers.

Key Stock Movers

• 🚀 Expedia was the top gainer in the S&P 500, rising 17.5% after raising its full-year outlook for gross bookings and revenue, signaling continued strong travel trends.
• 🥤 Monster Beverage climbed 5.2% in the Nasdaq 100 after its third-quarter results surpassed expectations, with analysts positive on gross margins and sales following recent price hikes.
• 🏌️ Topgolf Callaway gained 14.3%, boosted by increased net revenue guidance for the full year as more people took to golfing.
• 🥩 JBS shares fell 3.64% after the president announced a probe into meatpacking companies for alleged illicit collusion and price manipulation.
• 💳 Block (formerly Square) dropped 7.7% despite raising its full-year profit forecast, as its third-quarter revenues fell short of Wall Street estimates.
• 🥗 Sweetgreen shares hit a record low, down 7.5%, after cutting its full-year revenue guidance and missing analyst estimates, with pricey menu add-ons reportedly misfiring.

Other Market Insights

• 💱 The Israeli shekel strengthened significantly against the dollar, reaching session highs, following an outlook revision for Israel from stable to negative by S&P.
• 💰 The yield on 10-year Treasuries was little changed at 4.09%, and the dollar dropped 0.2% against a basket of currencies.
• ₿ Bitcoin climbed about 2.5%, trimming its weekly plunge.