- Facebook’s stock 3% rise leads the market to modest gains in early action
- Empire State survey drops by the most ever
- Sotheby’s shares jump nearly 60% after report says auction house is set to be taken private
U.S. stocks headed higher Monday morning, led by gains in shares of Facebook and Netflix, amid a broad rally in tech-related shares and the communication services sector.
How are major indexes faring?
The Dow Jones Industrial Average DJIA, +0.12% rose 20 points, or less than 0.1%, to 26,112, while S&P 500 index SPX, +0.22% gained 6 points, or 0.2%, to 2,892, with the information technology sector XLK, +0.50% gaining 0.5% and the communication services sector XLC, +0.92% of which Netflix and Facebook are members, rising 0.8%. Meanwhile, the Nasdaq Composite Index COMP, +0.77% added 55 points, or 0.7%, to 7,851.
On Friday, the Dow fell 17.16 points, or 0.1%, to end at 26,089.61, while the S&P 500 declined 4.66 points, or 0.2%, to 2,886.98. The tech-laden Nasdaq Composite Index shed 40.47 points, or 0.5%, to close at 7,796.66.
What’s driving the market?
The Fed will be the focus this week, with a two-day meeting kicking off Tuesday. Markets have been pricing in more than two rate reductions this year, on fears of the fallout from global trade tensions and a slowdown in the economy. Investors will want to see if those expectations match up to what the Fed is thinking, though no move on interest rates is expected at this week’s meeting.
A survey of manufacturing activity in the New York state area showed its largest-ever drop into negative territory in June. The Empire State manufacturing index plummeted 26.4 points to negative 8.6 in June, the New York Fed said Monday, marking a record decline. Economists had expected a reading of positive 10, according to a survey by Econoday.
Any reading below zero indicates a contraction in activity. The last time the index was negative was in October 2016.
Read: Five things to watch in the pivotal Fed meeting
Still, there is a possibility that investors could be disappointed looking for a near-term rate cut, given recent other data aren’t exactly screaming out for a pre-emptive rate cut.
A reading from the National Association of Home Builders survey for June is due at 10 a.m. Eastern.
As for global trade, Commerce Secretary Wilbur Ross played down the likelihood of a major deal at the Group of 20 summit later this month, if President Donald Trump and China President Xi Jinping meet. The mostly outcome will be an agreement for the U.S. and China to keep talking, he told The Wall Street Journal in an interview.
Which stocks are in focus?
Shares of Orgenesis Inc. ORGS, +3.61% were in focus after the U.S. Food and Drug Administration granted Orphan Drug Designation to the company’s Autologous Insulin Producing cells as a cell replacement therapy for the treatment of severe hypoglycemia-prone diabetes resulting from total pancreatectomy, caused by chronic pancreatitis.
Shares of Array BioPharma Inc. ARRY, +57.15% rocketed toward a record Monday, after the biopharmaceutical company focused on developing cancer treatments agreed to be acquired by Pfizer Inc. PFE, -0.55% in a deal valued at $11.4 billion.
Chewy Inc.’s stock CHWY, -3.92% remained in focus after the online pet retailer on Friday made its debut as a publicly traded company, soaring nearly 60%. Shares of Chewy were down 2.3% in early trade.
Auction house Sotheby’s BID, +57.70% announced a deal to be acquired by BidFair U.S.A., which is owned by telecom and media entrepreneur and art collector Patrick Drahi, in a deal valued at $3.7 billion. Shares of the company were up 57%.
Dish Network Corp. shares DISH, +0.43% jumped on the heels of reports that it is the leading bidder to buy assets that wireless carriers T-Mobile US Inc. TMUS, +0.15% and Sprint Corp. S, +0.36% would have to shed for merger approval.
Facebook Inc.’s shares FB, +2.69% were gaining as the social-media company was reportedly set to rollout its foray into cryptocurrencies, Libra coin, as early as Tuesday.
What are strategists and analysts saying?
“The past few days managed little to no real progress for bulls nor bears, and by Friday’s close, S&P was less than a half point away from were prices had closed Monday. This coming week brings about the much anticipated June [Federal Open Market Committee] meeting, and while a lowering of rates has not been priced in by the market for Tuesday, such a move IS expected by July, and failure to do so would be a surprise to markets (based on current positioning),” wrote Mark Newton, technical analyst at Newton Advisors, in a research note.
How are other markets trading?
The yield on the 10-year U.S. Treasury note TMUBMUSD10Y, +0.83% rose 0.6% to 2.107%.
Asian markets closed mixed, with Hong Kong’s Hang Seng Index HSI, +0.40% rising 0.4% and China’s Shanghai Composite Index SHCOMP, +0.20% inching up 0.2%. Japan’s Nikkei 225 NIK, +0.03% was flat, while in Europe, the Stoxx Europe 600 SXXP, -0.09% was flat.
Gold futures GCN19, -0.01% eased 0.4% to $1,338.30 an ounce and the U.S. dollar DXY, -0.21% also slipped against a basket of its peers. West Texas Intermediate crude CLN19, -0.53% eased 0.6% to $52.18 a barrel.
https://www.marketwatch.com/story/us-stock-futures-inch-up-in-cautious-atmosphere-ahead-of-fed-meeting-2019-06-17
2019-06-17 13:43:00Z
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