U.S. benchmark equity indexes ended higher Monday as traders braced for critical inflation data and corporate earnings set to be released later this week. Official data is expected to show Wednesday that U.S. consumer inflation in October rose 0.2% sequentially and 2.4% annually, as per a Bloomberg-compiled consensus.
Core inflation, which excludes volatile food and energy components, is anticipated to accelerate 0.3%, with Morgan Stanley commenting, "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." In commodity markets, December West Texas Intermediate crude oil closed down $2.34, settling at $68.04 per barrel.
Meanwhile, January Brent crude, the global benchmark, was observed down $1.98 to $71.89, as China reported that its economy continues to struggle despite fresh stimulus measures introduced last week. Concurrently, the dollar maintained its post-election rally. Tesla (TSLA) shares surged 9% after Wedbush Securities forecasted that the electric vehicle maker's artificial intelligence opportunities would likely be fast-tracked under the Trump administration.
Cigna Group (CI) shares jumped 7.4% following news from the health insurer stating it isn't pursuing a combination with Humana (HUM) and is on track to meet its full-year earnings target, while Humana's shares fell 2.1%. AbbVie (ABBV) reported that its two phase 2 trials assessing emraclidine in adult patients with schizophrenia and acute exacerbation of psychotic symptoms did not meet their primary goals, which led to a 13% decline in the company's shares..