On Monday, major US equity aggregates concluded the trading day higher, with market participants keeping a close watch on the key corporate earnings scheduled for release later in the week. Notable companies such as UnitedHealth, Johnson & Johnson, Bank of America, Goldman Sachs, Citigroup, Netflix, Morgan Stanley, Procter & Gamble, and American Express are set to disclose their latest quarterly financial results soon, which is likely to influence market sentiments. In comments made by Minneapolis Fed President Neel Kashkari, he expressed his expectation for 'modest reductions' in the federal funds rate in the upcoming quarters.
He emphasized that the health of the economy would be a critical determinant of both the pace and magnitude of such reductions. Notably, last month, the Federal Open Market Committee of the central bank slashed interest rates by 50 basis points, a significant decision that can have extensive ramifications across financial markets. On the commodities front, November West Texas Intermediate crude oil saw a decline, closing down by $1.72 to settle at $73.84 per barrel.
Meanwhile, December Brent crude, which serves as a global benchmark, also experienced a downturn, last observed at $77.42, down by $1.58. These movements followed an announcement from the Organization of the Petroleum Exporting Countries (OPEC), which downgraded its 2024 and 2025 global oil demand projections while maintaining steady supply estimates. In its recent monthly oil report, OPEC reduced its demand growth estimate for the current year from 2.03 million barrels a day to 1.93 million barrels a day, based on 'actual data' received along with diminished demand expectations in specific regions.
In a significant corporate development, Longboard Pharmaceuticals has agreed to be acquired by Danish pharmaceutical company H. Lundbeck, in a deal that carries an equity value of approximately $2.6 billion. Following the announcement, Longboard's shares surged by 52%. Conversely, Boeing faced a decline, with its stock down by 1.4%.
The troubled aircraft manufacturer has recently outlined plans to reduce its workforce and reported a preliminary Q3 loss that exceeded Wall Street's projections, adding to the challenges it currently faces..