U.S. stock indexes were struggling to find a direction on Monday morning in a subdued trading session in the lead-up to the release of key inflation data and the Federal Reserve’s interest-rate decision later this week.
How are stock indexes trading
-
The S&P 500
SPX
was rising 1 point, leaving it nearly flat, at 4,603 -
The Dow Jones Industrial Average
DJIA
was gaining 12 points, leaving it nearly flat at 36,261 -
The Nasdaq Composite
COMP
was falling 27 points, or 0.2%, to 14,377
On Friday, the Dow industrials rose 130.49 points, or 0.4%, to close at 36,247.87, its highest close since Jan. 12, 2022. The S&P 500 rose 0.4% to finish at 4,604.37, its best close since March 29, 2022, and the Nasdaq Composite climbed 0.4% to 14,403. 97, the highest close since April 4, 2022.
What’s driving markets
After a stronger-than-expected jobs report helped propel stocks higher on Friday, investors will now turn their attention to the last Fed meeting of the year and important inflation data ahead of that.
Economists expect November consumer prices, due Tuesday, will show soft headline inflation, but a firm core reading, which strips out food and energy prices. Producer prices are due on Wednesday with retail sales on Thursday.
On Wednesday, Fed Chair Jerome Powell and his colleagues will announce the outcome of the two-day policy meeting, with the central bank mostly expected to hold its key benchmark policy rates steady in a range of 5.25% to 5.5%, according to CME FedWatch Tool.
See: This week’s Fed meeting could slam brakes on year-end stock rally
Friday’s strong jobs data could have some bearing on what Powell has to say this week, said Peter Iosif, senior research analyst at Noteris.
“Despite the possibility of a seasonal effect, overall, the data tend to highlight once again the resilience and tightness of the U.S. employment market. The release may harden the Fed’s hawkish stance and contradict the market’s expectations for an early rate cut,” said Iosif.
The European Central Bank and Bank of England will each announce policy decisions on Thursday. A Bank of Japan decision will come next week.
The yen was sinking against the dollar
USDJPY,
+0.99%
on Monday after Bloomberg reported, cited sources, that central bank officials were in no rush to end a decades-long negative interest rate policy soon. The yen rallied last week on rising expectations that officials were leaning in that direction.
Companies in focus
-
Occidental Petroleum Corp.’s
OXY,
+1.06%
stock rose 1% on Monday after the oil company said it would pay $12 billion for privately held Permian Basin oil and gas producer CrownRock LP. Occidental said the deal will add about $1 billion in cash flow in the first year based on $70 per barrel. -
Shares of Macy’s Inc.
M,
+18.95%
jumped 16.5% after The Wall Street Journal reported that an investor group has made a $5.8 billion bid to take the department-store chain private. -
Hollysys Automation Technologies Ltd.’s stock
HOLI,
+8.70%
was up 6.9% after the firm agreed to be taken private by Ascendent Capital Partners in a deal that values the company at $1.66 billion.
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