US benchmark equity indexes showed a mixed performance after midday Monday as traders awaited important inflation data and corporate earnings scheduled for later this week. The Dow Jones Industrial Average rose 0.8% to 44,318.1 during intraday trading, while the S&P 500 saw a modest increase of 0.1%, reaching 6,001.1.
In contrast, the Nasdaq Composite experienced a slight decline of 0.1%, settling at 19,278.2. Among the sectors, consumer discretionary and financials emerged as the leaders, whereas technology faced the largest losses. Official data is projected to reveal that US consumer inflation increased by 0.2% on a sequential basis and 2.4% year-over-year in October, as per a consensus compiled by Bloomberg. Core inflation, which omits the more volatile food and energy sectors, is anticipated to rise by 0.3%, as mentioned in a note from Morgan Stanley sent Monday.
"However, we think the strength is largely just short-run noise (amid a) temporary acceleration in cars due to the recent hurricanes and short-lived payback in shelter following the weak print in September." Official producer price data for the previous month is set to be released on Thursday. Companies such as Home Depot ($HD), Cisco ($CSCO), Walt Disney ($DIS), and AstraZeneca ($AZN) are lined up to disclose their latest quarterly financial results later this week.
Additionally, Live Nation Entertainment ($LYV) and Grab ($GRAB) are expected to announce their results after the closing bell on Monday. In corporate news, Tesla ($TSLA) shares surged by 8.2% intraday, making it one of the best performers on both the S&P 500 and the Nasdaq. The electric vehicle manufacturer’s potential in artificial intelligence is likely to be expedited with the upcoming Donald Trump administration, as noted by Wedbush Securities in a communication to clients. Meanwhile, Cigna Group ($CI) shares jumped by 7.8%, landing among the top gainers in the S&P 500, following the health insurer's announcement that it is not pursuing a merger with Humana ($HUM) and is on track to achieve its full-year earnings target.
Conversely, Humana shares experienced a decline of 1.8%. Salesforce ($CRM) topped the list of gainers on the Dow, climbing by 5.3% as Jefferies adjusted its price target from $350 to $400 while maintaining its buy rating. However, AbbVie ($ABBV) disclosed that its two phase 2 trials assessing emraclidine in adult patients with schizophrenia and acute exacerbation of psychotic symptoms did not meet their primary objectives.
As a result, the company’s shares dropped nearly 12%, marking the second steepest decline on the S&P 500. Celanese ($CE) shares also fell by 6.6%, ranking among the worst performers on the S&P 500, following rating downgrades from UBS and BMO Capital. In commodity markets, West Texas Intermediate crude oil experienced a drop of 3.1%, trading at $68.17 a barrel during intraday.
Prices declined as the risk of a supply disruption due to storm Rafael in the US Gulf of Mexico diminished, while China’s recent stimulus measures failed to meet investor expectations, according to reports by Reuters. Gold prices fell by 2.6% to $2,625.80 per troy ounce, while silver lost 2.3%, trading at $30.72 per ounce..