Equity indexes in the US displayed mixed results after midday Monday as traders anticipated important inflation data and corporate earnings scheduled for later this week. The Dow Jones Industrial Average rose by 0.8% to reach 44,318.1 during intraday trading, with the S&P 500 showing a modest increase of 0.1% to 6,001.1.
Conversely, the Nasdaq Composite experienced a slight dip of 0.1%, landing at 19,278.2. In sector performance, consumer discretionary and financial sectors led the advancements, while the technology sector recorded the most significant decline. Official data are expected to reveal on Wednesday that consumer inflation in the US climbed by 0.2% sequentially and saw a 2.4% rise annually in October, as outlined by a consensus compiled by Bloomberg.
Core inflation, which excludes the fluctuating components of food and energy, is anticipated to accelerate by 0.3%. A note from Morgan Stanley indicated that the firm perceives the current strength as largely driven by temporary factors, noting "However, we think the strength is in large part just short-run noise (amid a) temporary acceleration in cars due to the recent hurricanes and short-lived payback in shelter after the weak print in September." Data on producer prices from the previous month is scheduled for release on Thursday. Among the companies poised to report quarterly financial results this week are Home Depot ($HD), Cisco ($CSCO), Walt Disney ($DIS), and AstraZeneca ($AZN).
Additionally, Live Nation Entertainment ($LYV) and Grab ($GRAB) are set to disclose their results following the closing bell on Monday. In corporate news, Tesla ($TSLA) shares surged 8.2% intraday, marking a notable performance on both the S&P 500 and the Nasdaq. Wedbush Securities commented that with the impending administration of Donald Trump, the electric vehicle manufacturer’s artificial intelligence prospects are likely to be accelerated. Cigna Group ($CI) shares soared 7.8% and were among the top gainers in the S&P 500 following the health insurer's announcement that it is not pursuing a merger with Humana ($HUM) and is on target to achieve its earnings goal for the year.
In contrast, Humana's shares declined by 1.8%. Salesforce ($CRM) emerged as the leading gainer on the Dow, climbing 5.3% after Jefferies revised its price target on the stock to $400 from the previous $350, while maintaining a buy rating. AbbVie ($ABBV) disclosed that its two phase 2 trials assessing emraclidine in adult patients suffering from schizophrenia and acute exacerbation of psychotic symptoms failed to meet their primary objectives.
As a result, the company’s shares fell nearly 12%, marking the second-largest decline on the S&P 500. Celanese ($CE) shares tumbled 6.6%, being among the worst off in the S&P 500, due to rating downgrades from UBS and BMO Capital. In commodity news, West Texas Intermediate crude oil prices decreased by 3.1% to $68.17 a barrel during intraday trading.
The drop was driven by a reduced concern over potential supply disruptions from storm Rafael in the Gulf of Mexico and disappointment among investors regarding China’s recent stimulus measures, as reported by Reuters. Gold prices diminished by 2.6%, settling at $2,625.80 per troy ounce, while silver lost 2.3%, trading at $30.72 per ounce..