Michael M. Santiago
Major market averages trade higher on Monday after the benchmark indices closed lower in the previous week. Early on and investors have shown a risk-on tone ahead of Thursday’s inflation print and midterm election results.
The Dow (DJI) is +0.6%, the S&P 500 (SP500) +0.2%, and the Nasdaq (COMP.IND) is higher by 0.1%.
Among the 11 S&P sectors, eight are higher led by the Energy sector. At the same time the Utilities segment suffered the greatest losses.
In the bond market, Treasury yields are higher. The 10-year Treasury yield (US10Y) is up 4 basis point to 4.19% and the 2-year Treasury yield (US2Y) has gained 7 basis points to 4.72%.
The dollar index (DXY) is also lower by 0.4% as it trades near the 110.4 level.
The economic calendar, remains quite on Monday as investor look ahead towards Thursday’s CPI print.
Pantheon Macroeconomics stated: “Job growth is slowing, on track to slip below 100K by next March, pushing up unemployment. Wage growth appears to be softening, though the data are not quite definitive, yet. If recent trends continue, and core CPI prints moderate, Chair Powell’s stance will have to change.”
Morgan Stanley outlined in an investor note: “Equity markets remained resilient in the face of a still hawkish Fed and strong labor data. This week presents another challenge with the CPI and mid-terms which could serve as further catalysts for lower interest rate vol and levels, at least at the back end.”
Among active stocks, Meta Platforms is higher as the firm is planning to implement large-scale job cuts this week.
Image and article originally from seekingalpha.com. Read the original article here.