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Stock Market Today: Dow closes higher as inflation data, Fed meeting eyed

Published 12/11/2023, 07:12 AM
Updated 12/11/2023, 04:07 PM
© Reuters

Investing.com -- The Dow closed higher on Monday, extending recent gains as investors looked ahead to a crucial week of market-moving events including fresh inflation data and the Federal Reserve's two-day meeting slated for Tuesday.

By 16:00 ET (21:00 GMT), the benchmark S&P 500 was up 0.3% and 30-stock Dow Jones Industrial Average gained 0.43%, 157 points, with both indexes notching an intraday high. The tech-heavy Nasdaq Composite rose 0.20%.

Inflation, Fed meeting in spotlight

The Federal Open Market Committee is tipped to hold rates at their current range of 5.25% to 5.50% on Wednesday. Much of the focus will likely be the Fed's projections for the economy, inflation, and the number of cuts expected next year.

The meeting will arrived on the heels on fresh consumer inflation data expected to show ongoing slowing in price pressures.

Comments from Fed chair Jerome Powell will also be garnered for a potential push back on market expectations for a sooner rather than later rate cut.

In the wake of last week's jobs data and separate numbers showing the slowest annual rise in underlying price gains in two years in October, markets are now pricing in a nearly 50% chance of a quarter-point rate decrease in borrowing costs as soon as May, according to Investing.com's Fed Rate Monitor Tool.

Cigna scraps Humana tie-up talks

U.S. health insurer Cigna (NYSE:CI) has ended its drive to acquire peer Humana (NYSE:HUM), according to multiple media reports, pulling the plug on a deal that would have created an insurance behemoth worth over $140 billion.

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The reports said neither Cigna nor Humana could agree on a price, while regulatory concerns and a fall in their share prices are also believed to have soured sentiment for a deal.

The abandoned talks come as Connecticut-based Cigna announced that it is aiming to roll out an additional $10B in share buybacks.

Macy's jumps on buyout fever

Macy's (NYSE:M) shares also surged more than 19% after the department store retailer reportedly received a $5.8 billion buyout offer from real estate-focused investing business Arkhouse Management and global asset manager Brigade Capital Management.

The investor group proposed a price of $21 per share for the department store operator, unnamed sources familiar with the matter told the Wall Street Journal. The offer represents a premium of roughly 21% based on Macy's closing stock price of $17.39 on Friday.

Big tech takes a breather as Treasury yields creep higher; Chip stocks climb

Big tech stocks were the biggest laggard on the day, paced by a more than declines in Microsoft Corporation (NASDAQ:MSFT) and Alphabet Inc Class A (NASDAQ:GOOGL), though a sharp jump in semiconductor stocks kept a lid on losses.

Globalfoundries Inc (NASDAQ:GFS), Applied Materials Inc (NASDAQ:AMAT), and Broadcom Inc (NASDAQ:AVGO) led chips higher, with the latter up more than 8% after Citi resumed coverage on the chipmaker with a buy rating.

Occidental Petroleum in deal for CrownRock as consolidation in energy continues

Occidental Petroleum Corporation (NYSE:OXY) said Monday it agreed a deal to buy shale oil driller Crownrock for $12B as the oil major seeks to expand its presence in the Midland basis.

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The move underscored an ongoing consolidation in the energy sector following Exxon Mobil (NYSE:XOM)'s $6B takeover deal for shale rival Pioneer Natural Resources (NYSE:PXD) earlier this year.

Elsewhere in the energy sector, Hess Corporation (NYSE:HES) and Baker Hughes Co (NASDAQ:BKR) were among the top gainers, up more than 1% even as oil prices traded sluggish amid cautious trading ahead of the Fed meeting this week.

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(Scott Kanowsky contributed to this report.)

Latest comments

Some people here are too driven by daily news, day-to-day news, rather than broader trends. And expecting the market to react on some one news item, when really there are an agglomeration of different influences at work, domestic and foreign, etc. You expect that stock market should react only to your chosen bit of data. There are innumerable factors including economic, political, macro, micro, social, foreign and domestic, sentimental, trends......at work l, each having innumerable factors. And also, you are not in charge---it does not have to do what you want.
Correct
and just a few years ago everything was Donald Trump's fault. See how easy that is? You have no moral high ground here. just stick to investing.
  I don't recall having seen anyone blame everything on Trump.  That's much more rare than retrumplicans blaming everything on Biden, and Hillary before him, and Obama before her, etc.
I need more information about your product
what has this to do with comming inflation data and FED meeting?
Nothing to see here folks...Just another criminal display of FRAUD and MANIPULATION in the BIGGEST INVESTMENT JOKE IN THE WORLD.
Lol china just cyber hacked the united states badly but thats bullish for stocks? Why dont you guys talk about the fraud. We just got hacked badly but S&P and QQQ is rallying? All the major tech stocks are down bad but QQQ us up almost $4. Lol what a joke. Lies lies lies
Impossible for "All the major tech stocks are down bad but QQQ us up".  You're lying.
First/Last. Sorry, but he's right. QQQ has been way out in front of NASDAQ all day. I just checked. NASDAQ up .10% and QQQ up .81%.
  MSFT is down  < 1%, so not "down bad".  Major tech stocks like TSM, AVGO, ORCL, ADBE, AMD, INTC, NFLX, etc. are green today.  Generally, large cap underperformed today, but that's not what Tanner said.  He said "all" and "bad".
Let's see how the stock market handles the housing market collapse.
I heard some people think this time is different. LOL
Mixed? The market is up 10% just over the past month alone. They have added trillions to market valuations despite P/Es not seen since the last market collapse. Do you all seriously think this market is just going to pump 60% YTD without a massive implosion going into 2024 election year?
Market fully priced in inflation at 2% and interest rates back to zero all before the first rate cut
Bond yields rising as stock market declares victory over inflation. Inverted yield curves pretty much meaningless because this time is different.
Wow. Somebody actually believes this time is different. Housing market and freight industry already in recession. It's taking longer because government has pumped so much money into the economy during the last 2 years.
  I specified WHY it's different.
And both US money supply and Fed balance sheet have been in decline for > a year.
Victory over inflation already priced in.
looking good at 1:30 pm
and you guys still keep fighting the market. What ever is your personal truth, leave It out side when investing. It isn't about what you believe or Care.
Another 'investor' without principles or integrity...its about selfish greed isn't it?
What a surprise.  Savvy "investors" are "buying" the most criminally overvalued equities in history as they "wait for the FED."  BIGGEST INVESTMENT JOKE ON EARTH.
Stocks pumped up and Gold smacked.. looks like bad news coming for markets. This managed hoax knows no bounds
dont you read? gold dumps cause fears of higher for longer. indices up cause optimism of rate cuts!
NABE survey shows US econy headed for sharp downturn in 2024 and 3Q23 real GDP was only 2.1% (also reported by NY Post).
“The NABE Outlook Survey Panel anticipates stronger U.S. economic growth projections for 2023 than in the October Outlook survey, ... Fewer respondents than in the October 2023 Outlook survey expect a recession within the next 12 months, ... While most respondents expect an uptick in the unemployment rate going forward, a majority anticipates that the rate will not exceed 5%. Too much monetary policy tightness and broadening conflicts in Ukraine and the Middle East are cited as the largest downside risks for the U.S. economy.”  --  nabe.com
"panelists expect growth to slow to 1% between the fourth quarter of 2023 and the fourth quarter of 2024"  =/=  "sharp downturn in 2024"
Aw, now you've gone and burst his bubble.
Scam market.
Keep buying
just a handful of stocks qualify
We are teetering on th edge of a cliff…This entire debt fueld ponzi scheme is about to implode. Americans’ way of life will change forever.
wrong
Winner Don nearly 70% of the vote in Iowa. LOL
like Iowa matters, lol
Rate cut 'hopes' are diminishing yet stocks are muted.. really? Stocks soared over a 1000 points on rate cut hopes at the end of November.
My goodness...the FED is not the end all and be all for financial markets. There are other critical macro events happening. Massive sovereign debt, decrease in the money supply, nobody wants US treasuries and a crumbling economy. I suppose we must have the Santa Claus rally just because its always happened and despite reality. Expect massive 'out of thin air liquidity' injections from Central Banks
Everything is so topped out!! I'm fairly confident that Powell has to raise .25 this week to cool down the market. Wouldn't put any money on it though.
Powell got too many shares to let it tank
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