US stocks edge higher; Bowman heads up Fed speakers

U.S. stocks edged higher Tuesday, climbing to record highs, ahead of more signals from the Federal Reserve on interest rates. 

At 09:40 ET (13:40 GMT), the Dow Jones Industrial Average gained 25 points, or 0.1%, the S&P 500 rose 2 points, or 0.1%, and the NASDAQ Composite climbed 35 points, or 0.2%.

The S&P 500 and the DJIA posted new record closing levels on Monday. Fed speakers, PCE data awaited 

The focus this week is on addresses by a slew of Federal Reserve officials- most notably Chair Jerome Powell - for more cues on the central bank’s plans to cut interest rates further. 

Minneapolis Fed President Neel Kashkari said he expected the Fed to slow its pace of future rate cuts after a strong start to the easing cycle, while Atlanta Fed President Raphael Bostic said the economy was nearing normalization faster than expected, although he did not expect the Fed to go on a “mad dash” to cut rates.

Comments later Tuesday from Fed Governor Michelle Bowman , at the Kentucky Bankers Association Annual Convention, will be the main focus Tuesday, given she was the sole dissenter to the size of last week's rate cut.

The Fed cut rates by the top end of market expectations last week, and the signaled the beginning of an easing cycle that analysts expect to bring rates lower by 125 bps by the end of the year.

PCE price index data - the Fed’s preferred inflation gauge - is due on Friday, and is likely to factor into the Fed’s plans for lower rates. Ahead of that, the Consumer Board consumer confidence index for September is due later in the session. Boeing sweetens its labor deal 

In the corporate sector, Boeing (NYSE:BA ) stock fell 0.3% after the aircraft manufacturer offered a new sweetened labor deal to its more than 30,000 striking workers in the US Pacific Northwest.

The aerospace giant's latest offer includes a 30% general pay bump over four years as well as improvement in retirement benefits and an increased ratification bonus if the workers accept the proposal by Friday. Boeing said it was its "best and final" offer.

Deere & Company (NYSE:DE ) stock rose 0.6% despite former President Donald Trump, the Republican presidential candidate, on Monday threatened the agricultural manufacturer with a "200% tariff" if it moves some production to factories in Mexico. Crude boosted by Chinese stimulus 

Crude prices advanced on Tuesday, boosted by the monetary stimulus from top importer China as well as escalating tensions in the Middle East.

By 09:40 ET, the Brent contract climbed 2% to $74.69 per barrel, while U.S. crude futures (WTI) traded 2.2% higher at $71.91 a barrel.

China's broad stimulus measures boosted hopes of expanding demand for crude from the world’s largest importer.

Elsewhere, Israel's military said it launched airstrikes against Hezbollah sites in Lebanon on Monday, raising concerns of a disruption to supplies from this oil-rich region, tightening global markets.

(Ambar Warrick contributed to this article.)  

 

Source: Investing.com