Dow Snaps Eight-Day Winning Streak After Lackluster Session
13 Maio 2024 - 5:34PM
IH Market News
Following the strong upward move seen last week, stocks turned
in a relatively lackluster performance during trading on Monday.
The major averages moved to the upside early in the session but
spent the day bouncing back and forth across the unchanged
line.
The major averages eventually ended the day narrowly mixed.
While the Nasdaq rose 47.37 points or 0.3 percent to 16,388.24, the
S&P 500 edged down 1.26 points or less than a tenth of a
percent to 5,221.42 and the Dow dipped 81.33 points or 0.2 percent
to 39,431.51.
The early strength on Wall Street came as stocks continued to
benefit from recent upward momentum, which led to an eight-day
winning streak for the Dow.
Renewed optimism about an interest rate cut by Federal Reserve
in the coming months contributed to the recent strength.
Buying interest waned over the course of the session, however,
as key inflation data due this week could have a significant impact
on the outlook for rates.
The Labor Department is scheduled to release its reports on
producer and consumer price inflation on Tuesday and Wednesday,
respectively.
Economists expect producer prices to rise by 0.3 percent in
April after edging up by 0.2 percent in March, while the annual
rate of growth is expected to tick up to 2.2 percent from 2.1
percent.
Consumer prices are expected to climb by 0.4 percent in April,
matching the increase seen in March. Core consumer prices, which
exclude food and energy prices, are expected to rise by 0.3 percent
in April after climbing by 0.4 percent in March.
The annual rate of consumer price growth is expected to dip to
3.4 percent in April from 3.4 percent in March, while the annual
rate of core consumer price growth is expected to slow to 3.6
percent from 3.8 percent.
Remarks by Fed Chair Jerome Powell may also attract attention
this week along with reports on retail sales, industrial production
and housing starts.
Among individual stocks, shares of GameStop (NYSE:GME) soared
after social media persona “Roaring Kitty,” whose posts helped
spark a frenzy of activity in the video game retailer’s stock in
2021, posted on X for the first time in three years.
Website building and hosting company Squarespace (NYSE:SQSP)
also surged after entering into a definitive agreement to go
private in an all-cash transaction valued at approximately $6.9
billion.
Sector News
Most of the major sectors showed only modest moves on the day,
contributing to the lackluster close by the broader markets.
Airline stocks showed a substantial move to the upside, however,
with the NYSE Arca Airline Index surging by 2.5 percent.
American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL)
posted notable gains after HSBC initiated coverage of the stocks
with Buy ratings.
Considerable strength was also visible among biotechnology
stocks, driving the NYSE Arca Biotechnology Index up by 1.1 percent
to its best closing level in a month.
Shares of Incyte (NASDAQ:INCY) spiked by 8.6 percent after the
biotechnology company announced its Board of Directors approved a
share repurchase authorization of $2.0 billion.
Meanwhile, housing stocks came under pressure over the course of
the session, dragging the Philadelphia Housing Sector Index down by
1.0 percent.
Other Markets
In overseas trading, stock markets across the Asia-Pacific
region turned in a mixed performance on Monday. Japan’s Nikkei 225
Index edged down by 0.1 percent and China’s Shanghai Composite
Index slipped by 0.2 percent, while Hong Kong’s Hang Seng Index
advanced by 0.8 percent.
Meanwhile, the major European markets all moved modestly lower
on the day. While the French CAC 40 Index slipped by 0.1 percent,
the German DAX Index and the U.K.’s FTSE 100 Index both dipped by
0.2 percent.
In the bond market, treasuries saw a modest rebound following
the pullback seen last Friday. As a result, the yield on the
benchmark ten-year note, which moves opposite of its price, dipped
2.3 basis points to 4.481 percent.
Looking Ahead
The Labor Department’s report on producer price inflation is
likely to be in focus on Tuesday along with Powell’s remarks during
a moderate discussion with De Nederlandsche Bank President Klaas
Knot.
SOURCE: RTTNEWS
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