A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, US, October 27, 2023. REUTERS/Brendan McDiarmid/File photo Obtaining licensing rights
Nov 6 (Reuters) – Wall Street’s main indexes rose on Monday as investors braced for comments from a slew of policymakers later in the week, which is likely to provide clarity on whether the Federal Reserve (the U.S. central bank) has… Lowers interest rates next year.
US stocks posted their best weekly performance in nearly a year on Friday, supported by a decline in Treasury yields as a weaker-than-expected monthly jobs report raised hopes that the Federal Reserve may start cutting interest rates next year.
Traders’ bets that the Fed will keep interest rates steady in December stand at 90%, while there is about an 80% chance that the first policy easing will come as soon as June, according to CME Group’s FedWatch tool.
Those expectations will be tested this week as market participants gauge the views of a group of Federal Reserve policymakers, including Chairman Jerome Powell, who is scheduled to speak in the coming days.
Other speakers include voting members such as New York Fed President John Williams and Dallas Fed President Lori Logan.
“When we look at the path of inflation with all the reports we’ve received and the ones we’re likely to get before the Fed meets again in December, the trend is still in the Fed’s direction,” said Market President Art Hogan. Strategist at B. Riley Wealth.
“All of this is a positive for the Fed’s ability to say it has reached a place where it is restrained enough to hold inflation close to its 2% target without crushing the economy and the labor market.”
Meanwhile, the yield on benchmark 10-year Treasury notes, which fell to five-week lows on Friday, rose to 4.6431% on Monday, ahead of the Treasury’s auction of about $112 billion in three-, 10- and 30-year bonds. One-year bonds due later this week.
This week’s economic data calendar is light, with weekly unemployment claims numbers released on Thursday and the University of Michigan Consumer Confidence report on Friday.
Walt Disney (DIS.N), Instacart (CART.O) and Biogen (BIIB.O) are among the major companies reporting earnings this week.
A total of 403 companies in the S&P 500 have reported earnings so far in the third quarter, with 81.6% beating analyst estimates, according to LSEG data.
Seven of the 11 major sectors in the S&P 500 rose, with gains in information technology (.SPLRCT) and consumer discretionary (.SPLRCD).
At 11:57 a.m. EST, the Dow Jones Industrial Average (.DJI) rose 52.99 points, or 0.16%, to 34,114.31, the S&P 500 Index (.SPX) rose 6.72 points, or 0.15%, to 4,365.06, and the Nasdaq. The complex (.IXIC) increased 39.45 points, or 0.29%, to 13,517.73 points.
Dish Network (DISH.O) stock fell 22.1% after the pay-TV provider missed third-quarter revenue estimates and announced that CEO Erik Carlson would step down.
Bumble (BMBL.O) stock fell 5.7% after the dating app operator announced that its founder Whitney Wolfe Herd would step down as CEO.
Declining issues outnumbered advancing ones by a ratio of 2.22 to 1 on the NYSE and by a ratio of 1.60 to 1 on the Nasdaq.
The S&P recorded nine new 52-week highs and no new lows, while the Nasdaq recorded 23 new highs and 64 new lows.
(Reporting by Amruta Khandekar and Shristi Achar – Prepared by Mohammed for the Arabic Bulletin) Editing by Maju Samuel
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