Stocks decline with inflation and focus on US credit rating downgrade

Stocks decline with inflation and focus on US credit rating downgrade

Stocks fell on Monday as investors braced for a key reading on U.S. inflation and a week full of potential insights into how consumers will hold up in the face of higher borrowing costs.

The Nasdaq Composite (^IXIC) led the early morning declines, down about 0.4% after US indexes rebounded on Friday to close out a second week of gains.

The S&P 500 (^GSPC) fell about 0.3%, while the Dow Jones Industrial Average (^DJI) fell about 0.2%, or roughly 50 points.

Foremost in mind is the October CPI report due Tuesday, one of the Federal Reserve’s main inputs into its interest rate decisions. Comments from several Fed officials last week kept the door open for further rate hikes, dampening optimism about an easing of tightening that has helped stocks rebound.

Adding to the cautious tone were concerns about the US government’s financial situation, after Moody’s changed its debt outlook to “negative” from “stable” and with another closing date approaching on Friday. Bill Dudley, a former Federal Reserve official, warned that lawmakers lack the will to solve the financial crisis, as the debt situation worsens due to rising interest rates.

A stream of consumer-focused earnings from big-box retailers could inject some cheer this week, with Home Depot (HD), Target (TGT), and Walmart (WMT) among the highlights. Monday’s agenda includes results from Fisker (FSR) and Tyson (TSN). Attention will be focused on what financial updates reveal about American consumers, after economic data showed that they feel bad about the state of the American economy.

Attention will also likely be on the face-to-face meeting between President Joe Biden and his Chinese counterpart Xi Jinping on Wednesday, their first in a year. The recent fraught relationship between the great powers is seen as a threat to the already faltering global economy.

  • Stocks slide at opening bell

    Stocks fell at the start of a busy trading week on Monday after US indexes rebounded on Friday to close out their second week of gains. The Nasdaq Composite (^IXIC) led the early morning declines, down about 0.4%. The S&P 500 (^GSPC) fell about 0.3%, while the Dow Jones Industrial Average (^DJI) fell about 0.2%, or roughly 50 points.

  • Boeing, monday.com and Tyson Foods: Stocks trend in premarket trading

    Here are some of the stocks topping Yahoo Finance’s trending trends page in pre-market trading on Monday:

    Boeing (BA): Shares rose 3%. The aircraft manufacturer secured a $52 billion order from Emirates Airlines at the Dubai Air Show on Monday.

    monday.com (MNDY): Shares rose 9%. The group announced its third-quarter earnings, which exceeded Wall Street expectations.

    Tyson Foods (TSN): Shares fell 5%. The group reported downbeat annual revenues due to slowing demand for meat.

    Xiaomi (XIACY): Xiaomi shares rose more than 1%. Apple’s decline in China sales has opened the door for Xiaomi, a local smartphone supplier, which has received more than 1 million orders since its launch in late October.

  • Stock futures point to a pullback after weekly gains

    Stocks on Wall Street on Monday were poised to pull back from last session’s sharp rise as investors eyed a key reading on inflation ahead.

    Dow Jones Industrial Average (^DJI) futures fell 0.11%, or 38 points, while S&P 500 futures (^GSPC) fell 0.20%. Futures on the tech-heavy Nasdaq 100 (^NDX) fell 0.24%.

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