US stocks edge higher; CPI, Fed speakers in focus
U.S. stocks steadied Tuesday after the post-election rally, as attention turns to the upcoming inflation release for more clues over future monetary policy.
At 09:35 ET (14:35 GMT), the Dow Jones Industrial Average rose 45 points, or 0.1%, the S&P 500 index climbed 8 points, or 0.1%, and the NASDAQ Composite gained 20 points, or 0.1%.
The main Wall Street indexes eked out new record highs on Monday, but their pace of gains now appeared to be cooling, as investors sought more insight into what a second Trump presidency will entail for the economy. CPI data, Fedspeak awaited
Investors are growing wary ahead of key consumer price index inflation data due on Wednesday.
Inflation is expected to have remained steady in October from the prior month amid continued resilience in the US economy, but any signs of elevated inflation could potentially delay the Federal Reserve’s plans to cut interest rates further.
The Fed cut rates by 25 basis points last week, and reiterated that it would maintain a data-driven approach to further easing.
Recent signs of sticky inflation spurred some doubts over just how much further interest rates will fall. Traders were seen pricing in a 70.7% chance for another 25 bps cut in December, and a 29.3% chance rates will remain unchanged, CME Fedwatch showed.
Beyond the CPI data, focus this week is also on addresses from a slew of Fed officials for more insight into the central bank’s plans for rates.
Fed Governor Christopher Waller and Richmond Fed President Thomas Barkin are set to speak on Tuesday. Home Depot earnings in focus
The quarterly corporate earnings season is beginning to ebb, although several firms are still due to unveil their latest results.
Home Depot (NYSE:HD ) stock rose 0.3% after the DIY retailer raised its annual same-store sales forecast, betting on resilient demand from professional contractors to offset weak spending on bigger projects such as kitchen renovations.
Shopify (NYSE:SHOP ) stock soared 20% after the Canadian e-commerce retailer forecast fourth-quarter revenue growth above estimates, while Live Nation Entertainment (NYSE:LYV ) stock rose 4% after the entertainment giant beat estimates for third-quarter profit, helped by cost controls and the high prices of concert tickets.
Hertz (NASDAQ:HTZ ) stock fell 9% after a wider-than-expected third-quarter loss and missed revenue estimates on Tuesday, hurt by depreciation charges from its fleet vehicles.
Tyson Foods (NYSE:TSN ) stock gained 8.1% after the food giant reported better-than-expected fourth-quarter earnings and revenue while also providing an optimistic outlook for fiscal 2025.
Meanwhile, Spotify (NYSE:SPOT ) is tipped to post its numbers after the closing bell. The Swedish audio streaming giant, which has slashed headcount and reduced its marketing budget this year in a bid to corral expenses, delivered profit that just topped projections in the second quarter. Crude gains despite OPEC's reduced forecasts
Oil prices rose Tuesday, rebounding after recent weakness despite OPEC cutting its global demand forecasts once more.
By 09:35 ET, the Brent contract climbed 1.4% to $72.81 per barrel, while US crude futures (WTI) traded 1.5% higher at $69.08 a barrel.
The Organization of the Petroleum Exporting Countries cut its forecast for oil-demand growth for the fourth consecutive month, after releasing in monthly report earlier Tuesday, after further delaying its planned output hike amid market concerns over weaker global consumption and lower prices.
The group of major oil producers now expects demand to grow by 1.82 million barrels a day this year and 1.54 million barrels a day the next from previous estimates of 1.93 million and 1.64 million barrels a day, respectively.
Both contracts had fallen by more than 5% over the previous two trading sessions, weighed by disappointment over China's new stimulus package as well as the easing of Hurricane Rafael into a tropical storm, soothing fears of supply disruptions in the region. (Ambar Warrick contributed to this article.)
Source: Investing.com
