US stocks traded mixed on Monday as investors awaited more third-quarter earnings and several Federal Reserve officials were expected to give more clues on monetary policy.
At 09:35 Greek time (13:35 Greek time), the Dow Jones industrial average was down 130 points, or 0.3%, while the S&P 500 was up 13 points, or 0.2%, and the NASDAQ Composite was up 110 points or 0.6%.
The third quarter earnings period is accelerating
The third-quarter earnings season will begin to accelerate this week, with more results from the nation’s banking giants as Bank of America (NYSE:BAC), Citigroup (NYSE:C) and Goldman Sachs (NYSE: GS) will announce on Tuesday and Morgan Stanley (NYSE:MS) on Wednesday.
In addition, Johnson & Johnson (NYSE:JNJ), chip maker ASML (AS:ASML) and streaming giant Netflix (NASDAQ:NFLX) are set to report during the week.
Investors will focus heavily on whether corporate earnings have been able to hold up despite pressures from high interest rates and sticky inflation.
Elsewhere, Boeing ( NYSE:BA ) shares fell 2.6%, with executives at the plane maker likely to learn more details later Monday about plans to cut about 17,000 jobs, about 10% of the global workforce. its staff. It will also delay the first deliveries of the 777X aircraft by a year and post a loss of $5 billion in the third quarter.
B. Riley Financial (NASDAQ:RILY) jumped 22% after the Wall Street Journal reported that the investment bank agreed to sell its appraisal and valuation unit, Great American, to asset manager Oaktree Capital for about $400 million.
Fed speakers in focus
This week will also see speeches from various Fed officials, which are likely to provide more clues about the central bank’s plans for further rate cuts.
Governor Christopher Waller, Minneapolis Fed President Neel Kashkari are expected to speak later on Monday and there is keen interest in what they might say about the central bank’s rate outlook.
Markets will get another update on the health of the US consumer on Thursday in the form of the latest retail sales data.
Investors will also study the latest news on additional stimulus in China, the world’s second largest economy.
China’s finance ministry said in a weekend briefing that it would implement fiscal stimulus measures, including more debt issuance and support for provincial governments. But the government did not provide key details about the timing and scale of the plans.
Crude falls on Chinese concerns
Oil prices fell sharply on Monday, retreating after OPEC cut forecasts for demand growth, while data on Chinese inflation raised doubts about the health of the country’s economy.
By 09:35 Greek time, Brent was down 1.8% at $77.62 a barrel, while U.S. crude futures (WTI) were trading 2% lower at $74.07 a barrel.
Data released over the weekend showed that consumer price growth in China unexpectedly eased in September, while producer prices posted a nearly two-year contraction — data that portends a poor outlook for demand in the world’s biggest oil importer.
The Organization of the Petroleum Exporting Countries cut its forecast for global oil demand growth in 2024, marking the producer group’s third consecutive downward revision.
OPEC, in its monthly report published earlier on Monday, said global oil demand would rise by 1.93 million barrels per day (bpd) in 2024, up from the 2.03 million bpd increase it expected last month. For next year, OPEC cut its estimate of global demand growth in 2025 to 1.64 million bpd from 1.74 million bpd.
China accounted for most of the downgrade for 2024, as OPEC cut its forecast for Chinese growth to 580,000 bpd from 650,000 bpd.
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Reference;
Nurse, P. (2024) US stocks mixed; Q3 earnings, Fed speakers in spotlight By Investing.com, Investing.com. Investing.com. Available at: https://www.investing.com/news/stock-market-news/us-stock-futures-muted-with-q3-earnings-fed-cues-in-focus-3660832 (Accessed: 14 October 2024).
