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By Stephen Culp NEW YORK (Reuters) -U.S. stocks ended in negative territory on Thursday as investors, left with no economic data or any sentiment-swaying catalysts, took the opportunity to consolidate ahead of third-quarter earnings season. The S&P 500 and the Nasdaq inched back from Wednesday's record closing highs, while the blue-chip Dow closed with the deepest percentage decline.  "The earnings cycle is upon us and there's a wait-and-see in terms of whether we’ll see the same level of consistency of earnings growth in the coming quarter that we've seen in the last two quarters," said Matthew Keator, managing partner in the Keator Group, a wealth management firm in Lenox, Massachusetts. "Couple that with the uncertainty surrounding the lack of data coming out of Washington and how the Fed navigates that, it's natural to see a bit of a pullback." The stock market's pause comes amid a steep rally that has been largely driven by the rise of artificial intelligence technology. The runup has prompted concerns that a bubble is forming, which could be a harbinger of an impending correction. Sunday will mark the current bull market's third anniversary; the benchmark S&P 500 touched the nadir of its current market cycle on October 12, 2022 on the heels of monetary tightening from the Fed. Over that time period, while tech and tech-adjacent megastocks have driven the index nearly 90% higher, history suggests the current bull market has more gas in its tank.  The U.S. government shutdown entered its ninth day, with few signs of progress. Consequently, market participants continue to be deprived of essential economic data. And with the start of third-quarter earnings season just days away, the scarcity of market-moving catalysts is focusing investors' attention on remarks from monetary policymakers for clues regarding the central bank's rate cut intentions through the end of the year. New York Federal Reserve President John Williams favors more interest rate reductions before year-end due to risks facing the weakening labor market, he said in an interview with the New York Times published on Thursday. Financial markets are currently pricing in a 94.6% likelihood that the Fed will implement a 25 basis-point interest rate cut at the conclusion of its October 28-29 meeting, according to CME's FedWatch tool. The Dow Jones Industrial Average fell 243.36 points, or 0.52%, to 46,358.42, the S&P 500 lost 18.61 points, or 0.28%, to 6,735.11 and the Nasdaq Composite lost 18.75 points, or 0.08%, to 23,024.63.  Among the 11 major sectors of the S&P 500, materials suffered the biggest drop, while consumer staples were the sole gainers. Housing and homebuilding were among the clear underperformers, both off more than 2% amid margin and demand worries. On Tuesday of next week, JPMorgan Chase, Goldman Sachs, Citigroup and Wells Fargo are slated to report quarterly results, marking the unofficial launch of third-quarter earnings season. Analysts currently predict year-on-year S&P 500 earnings growth of 8.8% in the July-September period, weaker than the second quarter's 13.8% and the year-ago quarter's 9.1% annual growth, according to the most recent data from LSEG. Delta Air Lines provided an upbeat forecast for the current quarter, after posting stronger-than-expected third-quarter earnings. The airline's shares jumped 4.3%.  Other U.S. carriers also gained, boosting the S&P 1500 Airlines index by 1.9%.  U.S. retailer Costco Wholesale rose 3.1%, after reporting September sales data. Shares of Albemarle increased 5.3% after brokerage TD Cowen raised its price target on the lithium producer and as China tightened export controls on rare earths. Declining issues outnumbered advancers by a 2.91-to-1 ratio on the NYSE. There were 354 new highs and 91 new lows on the NYSE. On the Nasdaq, 1,694 stocks rose and 2,966 fell as declining issues outnumbered advancers by a 1.75-to-1 ratio.  The S&P 500 posted 20 new 52-week highs and 11 new lows while the Nasdaq Composite recorded 133 new highs and 66 new lows. Volume on U.S. exchanges was 20.44 billion shares, compared with the 19.75 billion average for the full session over the last 20 trading days. (Reporting by Stephen Culp in New York; Additional reporting by Lewis Krauskopf in New York and Niket Nishant and Sukriti Gupta in Bengaluru; Editing by Matthew Lewis)

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By Marcelo Teixeira NEW YORK (Reuters) -U.S. chocolate consumers will face elevated chocolate prices this coming Halloween period as cocoa costs have more than doubled since early 2024, according to a report released on Thursday by Wells Fargo's Agri-Food Institute. While wholesale cocoa prices have eased from late 2024 peaks, manufacturers are still passing on to consumers their increased costs. Companies are also reducing seasonal product lines and implementing "shrinkflation" – reducing portion sizes while maintaining prices, the report said. The surge in cocoa costs was caused by severe supply disruptions in West Africa, which accounts for approximately 70% of global cocoa production. Heavy rains in late 2023 triggered black pod disease and crop rot, while subsequent El Nino-induced droughts in 2024 increased the prevalence of cocoa swollen shoot virus disease. Global cocoa production fell 12.9% year-over-year to 4.37 million metric tons in the last crop season, creating a supply deficit of 494,000 metric tons, the largest in over 60 years, according to the International Cocoa Organization (ICO). Production in Ivory Coast, the world's largest producer, dropped 25.3%, while Ghana's output declined 31.3%. The outlook remains challenging, Wells Fargo said, citing preliminary assessments by cocoa exporters that point to a 10% decline in output for the 2025/26 crop year beginning in October across four West African producers. "It is likely that cocoa prices will remain high at least through the next crop year ending September 2026 given the current record cocoa supply deficit," the report stated.  Recently imposed tariffs on major suppliers of cocoa and cocoa products to the U.S. States are an added cost factor. The main U.S. suppliers are Ecuador, Ivory Coast, Dominican Republic and Ghana. All of them received so-called "reciprocal" tariffs, ranging from 15% to 25%. U.S. importers and chocolate makers need to pay that additional amount when the beans or byproducts such as cocoa butter or cocoa powder arrive in the country. Cocoa is only produced in tropical regions.  Wells Fargo analysts said consumers should shop for treats with less cocoa content, compare prices across retailers, and consider generic alternatives, which can offer savings compared to branded products. (Reporting by Marcelo TeixeiraEditing by Marguerita Choy)

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By Sneha S K (Reuters) -The U.S. government announced quality ratings for 2026 Medicare health and prescription drug plans on Thursday, which help determine bonus payments from the government to health insurers. CVS Health's Aetna unit has more than 81% of members in top-rated programs. UnitedHealth has 78%, Elevance 55% and Humana about 20%, figures from the regulator and companies showed. Overall, 64% of people currently enrolled in Medicare Advantage plans that cover prescription drugs are covered by plans rated four or five stars, according to a research note from Oppenheimer. The U.S. Centers for Medicare & Medicaid Services, which is part of the HHS, issues star ratings for the plans from one to five — with five being the highest performing — to help beneficiaries choose among them. The agency evaluates different factors to rate the plans, including customer satisfaction, access to care and performance on cancer screenings and management of chronic conditions, among others. Plans with higher star ratings mean bigger payments from the government to the insurer, and the bonus payments can be worth hundreds of millions or billions of dollars. The ratings will impact insurers' revenues in 2027. "Overall, the results were not very surprising given the various company pre-announcements over recent weeks," said Oppenheimer analyst Michael Wiederhorn. CVS Health added that its Aetna business also has over 63% of Aetna Medicare Advantage members in a 4.5-star plan for next year. Humana and UnitedHealth's star ratings were in line with the companies' earlier announcements, analysts said. UnitedHealth said that it has 78% of its members in 4-star plans or higher and 40% are in 4.5-star plans for 2026. Humana said last week that it has about 20%, or 1.2 million, of its members in high-rated plans. Elevance said it now has 55% of membership in plans rated 4 stars and higher, up from 40% a year ago. Elevance was among the largest gainers in quality ratings, analysts said. Michael Carson, the president and CEO of Wellcare, Centene's Medicare business, said he was pleased with the continued progress reflected in this year's star ratings. "We're focused on building on this momentum, ensuring our members receive high-quality, affordable care and continuing to improve health outcomes in the communities we serve," he said. (Reporting by Sneha S K and Siddhi Mahatole in Bengaluru; Editing by Alan Barona)

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By Sneha S K (Reuters) -The U.S. government announced quality ratings for 2026 Medicare health and prescription drug plans on Thursday, which help determine bonus payments from the government to health insurers. CVS Health's Aetna unit has more than 81% of members in top-rated programs. UnitedHealth has 78%, Elevance 55% and Humana about 20%, figures from the regulator and companies showed. Overall, 64% of people currently enrolled in Medicare Advantage plans that cover prescription drugs are covered by plans rated four or five stars, according to a research note from Oppenheimer. The U.S. Centers for Medicare & Medicaid Services, which is part of the HHS, issues star ratings for the plans from one to five — with five being the highest performing — to help beneficiaries choose among them. The agency evaluates different factors to rate the plans, including customer satisfaction, access to care and performance on cancer screenings and management of chronic conditions, among others. Plans with higher star ratings mean bigger payments from the government to the insurer, and the bonus payments can be worth hundreds of millions or billions of dollars. The ratings will impact insurers' revenues in 2027. "Overall, the results were not very surprising given the various company pre-announcements over recent weeks," said Oppenheimer analyst Michael Wiederhorn. CVS Health added that its Aetna business also has over 63% of Aetna Medicare Advantage members in a 4.5-star plan for next year. Humana and UnitedHealth's star ratings were in line with the companies' earlier announcements, analysts said. UnitedHealth said that it has 78% of its members in 4-star plans or higher and 40% are in 4.5-star plans for 2026. Humana said last week that it has about 20%, or 1.2 million, of its members in high-rated plans. Elevance said it now has 55% of membership in plans rated 4 stars and higher, up from 40% a year ago. Elevance was among the largest gainers in quality ratings, analysts said. (Reporting by Sneha S K and Siddhi Mahatole in Bengaluru; Editing by Alan Barona)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Sneha S K (Reuters) -The U.S. government announced quality ratings for 2026 Medicare health and prescription drug plans on Thursday, which help determine bonus payments from the government to health insurers. CVS Health's Aetna unit has more than 81% of members in top-rated programs. UnitedHealth has 78%, Elevance 55% and Humana about 20%, figures from the regulator and companies showed. Overall, 64% of people currently enrolled in Medicare Advantage plans that cover prescription drugs are covered by plans rated four or five stars, according to a research note from Oppenheimer. The U.S. Centers for Medicare & Medicaid Services, which is part of the HHS, issues star ratings for the plans from one to five — with five being the highest performing — to help beneficiaries choose among them. The agency evaluates different factors to rate the plans, including customer satisfaction, access to care and performance on cancer screenings and management of chronic conditions, among others. Plans with higher star ratings mean bigger payments from the government to the insurer, and the bonus payments can be worth hundreds of millions or billions of dollars. The ratings will impact insurers' revenues in 2027. "Overall, the results were not very surprising given the various company pre-announcements over recent weeks," said Oppenheimer analyst Michael Wiederhorn. CVS Health added that its Aetna business also has over 63% of Aetna Medicare Advantage members in a 4.5-star plan for next year. Humana and UnitedHealth's star ratings were in line with the companies' earlier announcements, analysts said. UnitedHealth said that it has 78% of its members in 4-star plans or higher and 40% are in 4.5-star plans for 2026. Humana said last week that it has about 20%, or 1.2 million, of its members in high-rated plans. Elevance said it now has 55% of membership in plans rated 4 stars and higher, up from 40% a year ago. Elevance was among the largest gainers in quality ratings, analysts said. (Reporting by Sneha S K and Siddhi Mahatole in Bengaluru; Editing by Alan Barona)

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NEW YORK (Reuters) -The Colonial Pipeline Company, operator of the largest U.S. fuel transportation system, informed employees this week that it is planning to cut some jobs, according to two sources familiar with the matter and a company statement. "We shared with our employees this week that a recent review to ensure our organization is best aligned to continue safely meeting our business strategy and priorities will result in changes to various team structures and some individual roles," the company said in response to Reuters queries about the job cuts. The scope of the cuts could not be learnt immediately. Colonial Pipeline declined to say how many employees will be impacted by the cuts. (Reporting by Shariq Khan in New York; editing by Diane Craft)

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By Douglas Gillison WASHINGTON (Reuters) -Wall Street's top regulator on Thursday eased the way for companies to proceed with initial public offerings during the federal government's shutdown, according to an announcement on its website. Companies are normally prevented from debuting on Wall Street during periods when Congress has not approved funding for government operations, because officials are unable to review and approve registration statements. That has prompted investor concerns that partisan gridlock in Washington could dent the IPO market.  However, companies can allow their statements to become effective automatically, which involves setting their IPO pricing 20 days before the listing instead of finalizing it the night before after a U.S. Securities and Exchange Commission review. In an announcement posted on its website on Thursday, the SEC said because officials were unavailable to review registration statements, the regulator would not seek to punish companies that omit pricing information from prospectuses filed during the shutdown and then go public either during the shutdown or afterwards. An SEC spokesperson declined to comment. In a client alert, law firm Davis Polk said the change had occurred following "discussions" the firm and others had held with the agency. The firm did not immediately respond to a request for comment on Thursday. (Reporting by Douglas Gillison in Washington; Editing by Jamie Freed)

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BEIJING (Reuters) -China dramatically expanded its rare earths export controls on Thursday, adding five new elements and extra scrutiny for semiconductor users as Beijing tightens control over the sector ahead of talks between Presidents Donald Trump and Xi Jinping. The world's largest rare earths producer also added dozens of pieces of refining technology to its control list and announced rules that will require compliance from foreign rare earth producers who use Chinese materials. The Ministry of Commerce's announcements follow U.S. lawmakers' call on Tuesday for broader bans on the export of chipmaking equipment to China. They expand controls Beijing announced in April that caused shortages around the world, before a series of deals with Europe and the U.S. eased the supply crunch. "The White House and relevant agencies are closely assessing any impact from the new rules, which were announced without any notice and imposed in an apparent effort to exert control over the entire world's technology supply chains," a White House official told Reuters on Thursday. The new curbs come ahead of a scheduled face-to-face meeting between Trump and Xi in South Korea at the end of October. "This helps with increasing leverage for Beijing ahead of the anticipated Trump-Xi summit in (South) Korea later this month," said Tim Zhang, founder of Singapore-based Edge Research. China produces over 90% of the world's processed rare earths and rare earth magnets. The 17 rare earths are vital materials in products ranging from electric vehicles to aircraft engines and military radars. Exports of 12 of them are now restricted after the ministry added five – holmium, erbium, thulium, europium and ytterbium – along with related materials. Foreign companies producing some of the rare earths and related magnets on the list will now also need a Chinese export licence if the final product contains or is made with Chinese equipment or material. This applies even if the transaction includes no Chinese companies. The regulations mimic rules the U.S. has implemented to restrict other countries' exports of semiconductor-related products to China. It was not immediately clear how Beijing intends to enforce its new regime, especially as the U.S., the European Union and others race to build alternatives to the Chinese rare earth supply chain. "We're likely entering a period of structural bifurcation — with China localizing its value chain and the U.S. and allies accelerating their own," said Neha Mukherjee, a rare earths analyst with Benchmark Mineral Intelligence. In a nod to concerns about supply shortages, the ministry said the scope of items in its latest restrictions was limited and "a variety of licensing facilitation measures will be adopted". China's latest restrictions on the five additional elements and processing equipment will take effect on November 8, just before a 90-day trade truce with Washington expires. The rules on foreign companies that make products using Chinese rare earths equipment or material are to take effect on December 1. Shares in China Northern Rare Earth Group, China Rare Earth Resources and Technology and Shenghe Resources surged by 10%, 9.97% and 9.4%, respectively, on Thursday. Shares in U.S.-based rare earths companies jumped as well in New York afternoon trading, with Critical Metals Corp gaining 25%, Energy Fuels adding 9%, MP Materials gaining 2.5% and USA Rare Earth up 15%. Energy Fuels, which owns a uranium and rare earths processing facility in Utah, said in a statement to Reuters that it is working to boost U.S. rare earths production and that its recent pilot project "showcases the technical capabilities of an American company on American soil." NioCorp, which is developing a Nebraska rare earths mine, said: "It's clear that the People's Liberation Army is increasingly calling the shots on rare earth policy in China. That means even more difficult times both for the Pentagon and for a wide range of commercial manufacturers." CHIPS AND DEFENSE The ministry also said overseas defense users will not be granted licences, while applications related to advanced semiconductors will be approved on a case-by-case basis. The new rules apply to 14-nanometer chips or more advanced chips, memory chips with 256 layers or more, and equipment used in production of such chips, as well as to related research and development. These advanced chips are used in products from smartphones to AI chipsets that require powerful computing performance. The rules will also apply to research and development of artificial intelligence with potential military applications. South Korea, home to major memory chipmakers Samsung Electronics and SK Hynix, is assessing the details of the new restrictions and will continue discussions with China to minimise their impact, its industry ministry said in a statement to Reuters. Samsung declined to comment. SK Hynix and Taiwan's TSMC did not immediately respond to questions. Shares in TSMC rose 1.8% on Thursday, as the company reported forecast-beating third-quarter revenue. South Korea's financial markets were closed on Thursday for a public holiday. (Reporting by Beijing bureau; Additional reporting by Ernest Scheyder in Houston, Heekyong Yang in Seoul, Eric Onstad in London and Jarrett Renshaw in Washington; Editing by Christian Schmollinger, Kate Mayberry, Tom Hogue, Mark Heinrich, Jason Neely and Marguerita Choy)

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BEIJING (Reuters) -China dramatically expanded its rare earths export controls on Thursday, adding five new elements and extra scrutiny for semiconductor users as Beijing tightens control over the sector ahead of talks between Presidents Donald Trump and Xi Jinping. The world's largest rare earths producer also added dozens of pieces of refining technology to its control list and announced rules that will require compliance from foreign rare earth producers who use Chinese materials. The Ministry of Commerce's announcements follow U.S. lawmakers' call on Tuesday for broader bans on the export of chipmaking equipment to China. They expand controls Beijing announced in April that caused shortages around the world, before a series of deals with Europe and the U.S. eased the supply crunch. "The White House and relevant agencies are closely assessing any impact from the new rules, which were announced without any notice and imposed in an apparent effort to exert control over the entire world's technology supply chains," a White House official told Reuters on Thursday. The new curbs come ahead of a scheduled face-to-face meeting between Trump and Xi in South Korea at the end of October. "This helps with increasing leverage for Beijing ahead of the anticipated Trump-Xi summit in (South) Korea later this month," said Tim Zhang, founder of Singapore-based Edge Research. China produces over 90% of the world's processed rare earths and rare earth magnets. The 17 rare earths are vital materials in products ranging from electric vehicles to aircraft engines and military radars. Exports of 12 of them are now restricted after the ministry added five – holmium, erbium, thulium, europium and ytterbium – along with related materials. Foreign companies producing some of the rare earths and related magnets on the list will now also need a Chinese export licence if the final product contains or is made with Chinese equipment or material. This applies even if the transaction includes no Chinese companies. The regulations mimic rules the U.S. has implemented to restrict other countries' exports of semiconductor-related products to China. It was not immediately clear how Beijing intends to enforce its new regime, especially as the U.S., the European Union and others race to build alternatives to the Chinese rare earth supply chain. "We're likely entering a period of structural bifurcation — with China localizing its value chain and the U.S. and allies accelerating their own," said Neha Mukherjee, a rare earths analyst with Benchmark Mineral Intelligence. In a nod to concerns about supply shortages, the ministry said the scope of items in its latest restrictions was limited and "a variety of licensing facilitation measures will be adopted". China's latest restrictions on the five additional elements and processing equipment will take effect on November 8, just before a 90-day trade truce with Washington expires. The rules on foreign companies that make products using Chinese rare earths equipment or material are to take effect on December 1. Shares in China Northern Rare Earth Group, China Rare Earth Resources and Technology and Shenghe Resources surged by 10%, 9.97% and 9.4%, respectively, on Thursday. Shares in U.S.-based rare earths companies jumped as well in New York afternoon trading, with Critical Metals Corp gaining 25%, Energy Fuels adding 9%, MP Materials gaining 2.5% and USA Rare Earth up 15%. Energy Fuels, which owns a uranium and rare earths processing facility in Utah, said in a statement to Reuters that it is working to boost U.S. rare earths production and that its recent pilot project "showcases the technical capabilities of an American company on American soil." NioCorp, which is developing a Nebraska rare earths mine, said: "It's clear that the People's Liberation Army is increasingly calling the shots on rare earth policy in China. That means even more difficult times both for the Pentagon and for a wide range of commercial manufacturers." CHIPS AND DEFENSE The ministry also said overseas defense users will not be granted licences, while applications related to advanced semiconductors will be approved on a case-by-case basis. The new rules apply to 14-nanometer chips or more advanced chips, memory chips with 256 layers or more, and equipment used in production of such chips, as well as to related research and development. These advanced chips are used in products from smartphones to AI chipsets that require powerful computing performance. The rules will also apply to research and development of artificial intelligence with potential military applications. South Korea, home to major memory chipmakers Samsung Electronics and SK Hynix, is assessing the details of the new restrictions and will continue discussions with China to minimise their impact, its industry ministry said in a statement to Reuters. Samsung declined to comment. SK Hynix and Taiwan's TSMC did not immediately respond to questions. Shares in TSMC rose 1.8% on Thursday, as the company reported forecast-beating third-quarter revenue. South Korea's financial markets were closed on Thursday for a public holiday. (Reporting by Beijing bureau; Additional reporting by Ernest Scheyder in Houston, Heekyong Yang in Seoul, Eric Onstad in London and Jarrett Renshaw in Washington; Editing by Christian Schmollinger, Kate Mayberry, Tom Hogue, Mark Heinrich, Jason Neely and Marguerita Choy)

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By Nora Eckert DETROIT (Reuters) -Ford Motor is walking back a program that would have allowed dealers to offer a $7,500 tax credit on EV leases after the federal subsidy expired September 30, the company said on Thursday. "Ford will not claim the EV tax credit but will maintain the competitive lease payments we have in the market today," a spokesperson said.  The decision follows a similar move from General Motors on Wednesday. While automakers including Hyundai and Stellantis have offered cash off incentives to bridge the gap for buyers, Ford and GM took a different approach.  The in-house lending arms at these two automakers planned to initiate the purchase of EVs in dealers’ inventory, and the companies would apply for the $7,500 credit on those cars and then roll that money into EV lease terms for customers. For customers who want to purchase an electric vehicle, Ford Credit continues to offer 0 percent financing for 72 months and other incentives, a spokesperson said. GM opted to kill the program after concerns were raised about it by Republican Senator Bernie Moreno of Ohio, a former car dealer who is active in auto policy, a person briefed on the matter told Reuters. It is unclear why Ford canceled its program.  Ford and GM developed their strategies after discussions with officials at the Internal Revenue Service, Reuters previously reported. Some auto executives, including Ford CEO Jim Farley, have warned that EV sales will drop significantly in the absence of the credit. Other automotive leaders, such as the CEO of Hyundai Motor North America, have affirmed that the electric vehicle market is more resilient than that.   (Reporting by Nora Eckert; Editing by Chizu Nomiyama )

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