Stock Market Today: Stocks lower with CPI and bank earnings in focus; Boeing slumps

Check back for updates throughout the trading day

U.S. equity futures moved lower again Monday while the dollar extended gains against its global peers, as investors looked ahead to a busy Wall Street week that includes a key inflation reading and the start of the fourth-quarter-earnings season.

The S&P 500 snapped a nine-week winning streak at the close of trading on Friday, its longest since 1989, following a stronger-than-expected December jobs report and a notable move higher in Treasury bond yields that looks to test the market’s thesis on near-term rate hikes from the Federal Reserve. 

Treasury yields are likely to be in focus again this week as investors await a $37 billion auction of 10-year notes Wednesday and a $21 billion sale of 30-year bonds the following day, as well as December consumer-price-inflation data slated for Thursday at 8:30 a.m. U.S. Eastern Time.

Benchmark 10-year notes were last seen little changed from Friday’s close at 4.048% while 2-year notes traded at 4.381% in the early New York session.

The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.05% higher from Friday’s close at 102.461.

JPMorgan  (JPM) – Get Free Report will lead a parade of big-bank earnings Friday to kick off the start of the fourth-quarter-earnings season. Analysts are looking for collective S&P 500 profits to rise 5.2% from a year earlier to a share-weighted $457.2 billion.

Investors are also likely to track developments in Washington this week after congressional leaders agreed to broad terms of a $1.59 trillion spending deal that could avert a partial government shutdown.

House members will need to pass the detail bill by Jan. 19, with a larger deadline looming on Feb. 2, to avoid yet another debt-and-spending standoff in Washington. 

Heading into the start of the trading day on Wall Street, futures contracts tied to the S&P 500, which fell 1.5% last week, are indicating a 5 point opening-bell decline to start the session.

Futures tied to the Dow Jones Industrial Average, meanwhile, are priced for a 160 point decline thanks to an 8% slump for Boeing  (BA) – Get Free Report, which suffered a major incident with the fuselage of an Alaskan Airlines 737 Max aircraft on Friday. 

The tech-focused Nasdaq is called 6 points lower.

In overseas markets, Europe’s Stoxx 600 was marked 0.31% lower in early Frankfurt trading while Britain’s FTSE 100 fell 0.37% in London.

Overnight in Asia, stocks in China neared the lowest levels in five years amid deepening concern over the fate of its post-covid recovery and the government’s ability to kickstart growth. That pulled the regionwide MSCI ex-Japan benchmark 0.91% lower into the close of trading.

The Nikkei 225 in Japan was closed for the country’s annual Old Age Day holiday.

Action Alerts PLUS offers expert portfolio guidance to help you make informed investing decisions. Sign up now.

Related Posts