US open: Stocks edge lower after Moody’s cuts sovereign debt outlook

(Sharecast News) – US stocks were slightly lower on Monday morning in New York as investors treaded carefully ahead of a busy week for economic data, which included the latest reading on consumer price inflation.
Credit rating agency Moody’s decision to lower its outlook on America’s long-term debt to negative was also dragging on investor sentiment.

As of 1603 GMT, the Dow Jones Industrial Average was roughly flat at 34,275.38, helped by gains for jet-maker Boeing, while the S&P 500 had drifted lower by 0.2% to 4,405.91.

The Nasdaq Composite was off by 0.29% at 13,757.81, but had finished about 2% higher during the previous session.

In parallel, the yield on the benchmark 10-year U.S. Treasury note was was edging up by one basis point to 4.66%.

Congress had just four more days left to pass a new stop-gap bill before the current one runs out on 17 November. Speaker Mike Johnson unveiled a new proposal at the weekend to push funding into January, but measures faced opposition from both parties.

“Moody’s decision to shift the US credit rating outlook from stable to negative on Friday signalled a growing feeling that the country is becoming increasingly unstable under the weight of increased debt and ballooning repayment costs,” said analyst Joshua Mahony from Scope Markets.

Inflation figures, due out at 0830 ET on Tuesday, were expected to show that core inflation was unchanged at 4.1% in October – still firmly above the Federal Reserve’s 2% target.

Fed chair Jerome Powell – along with other policymakers – delivered somewhat hawkish comments to the public during the previous week, saying that the central bank wouldn’t hesitate to tighten monetary policy further to bring inflation down towards the target.

“Last week we heard a slew of Fed members calling on the likely need for further hikes in order to drive inflation lower. While not all commentary was firmly hawkish, the key message across the week was that it was too early to declare victory on inflation and, as such, further tightening might still be needed,” said analyst James Harte of Tickmill Group.

In company news, Boeing shares were flying 4% higher on reports that China might call an end to its four-year suspension of Boeing 737 Max airlines ahead of Joe Biden’s meeting with Xi Jinping’s at the APEC summit this week.

The airplane manufacturer also announced a batch of new orders from the sidelines of the Dubai airshow.

Dow Jones – Risers

Boeing Co. (BA) $205.34 4.41%
Verizon Communications Inc. (VZ) $36.05 0.84%
Procter & Gamble Co. (PG) $152.49 0.57%
Walt Disney Co. (DIS) $88.79 0.56%
Goldman Sachs Group Inc. (GS) $327.17 0.54%
Caterpillar Inc. (CAT) $241.05 0.53%
Chevron Corp. (CVX) $143.82 0.51%
Salesforce.Com Inc. (CRM) $214.85 0.50%
Travelers Company Inc. (TRV) $170.82 0.50%
Coca-Cola Co. (KO) $56.92 0.39%

Dow Jones – Fallers

Walgreens Boots Alliance, Inc. (WBA) $20.15 -2.94%
Intel Corp. (INTC) $38.34 -1.35%
Nike Inc. (NKE) $104.75 -1.31%
Apple Inc. (AAPL) $184.54 -1.00%
Dow Chemical Co. (DOW) $49.07 -0.97%
Amgen Inc. (AMGN) $264.82 -0.93%
International Business Machines Corporation (CDI) (IBM) $147.76 -0.89%
Home Depot Inc. (HD) $289.26 -0.87%
JP Morgan Chase & Co. (JPM) $145.49 -0.73%
Microsoft Corp. (MSFT) $367.39 -0.62%

S&P 500 – Risers

Henry Schein Inc. (HSIC) $69.00 7.70%
DaVita Inc (DVA) $88.12 6.18%
Boeing Co. (BA) $205.34 4.42%
Boston Scientific Corp. (BSX) $53.75 4.25%
Teleflex Inc. (TFX) $204.84 2.39%
Lamb Weston Holdings, Inc. (LW) $96.29 2.36%
Intuitive Surgical Inc. (ISRG) $283.86 2.30%
Stryker Corp. (SYK) $279.39 2.11%
Arista Networks Inc. (ANET) $210.94 1.98%
Medtronic Plc (MDT) $72.08 1.98%

S&P 500 – Fallers

VF Corp. (VFC) $14.07 -5.57%
Nektar Therapeutics (NKTR) $0.43 -5.47%
Under Armour Inc. Class A (UAA) $7.06 -4.34%
Illumina Inc. (ILMN) $94.32 -4.12%
Under Armour, Inc. (UA) $6.65 -4.04%
Bath & Body Works, Inc. (BBWI) $29.80 -3.99%
Hanesbrands Inc. (HBI) $3.86 -3.98%
Albemarle Corp. (ALB) $113.27 -3.17%
Kohls Corp. (KSS) $21.12 -2.99%
Macy’s Inc. (M) $10.65 -2.92%

Nasdaq 100 – Risers

Henry Schein Inc. (HSIC) $69.00 7.70%
Trip.com Group Limited (TCOM) $34.94 3.04%
Tesla Inc (TSLA) $220.99 2.95%
Intuitive Surgical Inc. (ISRG) $283.86 2.30%
Take-Two Interactive Software Inc. (TTWO) $150.59 1.83%
Qurate Retail Inc. (QRTEA) $0.65 1.83%
Booking Holdings Inc. (BKNG) $3,130.43 1.83%
NetEase Inc. Ads (NTES) $115.44 1.37%
Incyte Corp. (INCY) $53.09 1.24%
Idexx Laboratories Inc. (IDXX) $433.61 1.14%

Nasdaq 100 – Fallers

Illumina Inc. (ILMN) $94.32 -4.12%
Walgreens Boots Alliance, Inc. (WBA) $20.17 -2.84%
Dish Network Corp. (DISH) $3.36 -2.47%
Microchip Technology Inc. (MCHP) $76.05 -1.95%
Micron Technology Inc. (MU) $73.98 -1.83%
eBay Inc. (EBAY) $39.14 -1.78%
Skyworks Solutions Inc. (SWKS) $88.50 -1.70%
KLA-Tencor Corp. (KLAC) $525.42 -1.65%
Gilead Sciences Inc. (GILD) $74.69 -1.62%
Lam Research Corp. (LRCX) $674.68 -1.57%

Related Articles

Sign up to the Wealth DFM Newsletter

Please enable JavaScript in your browser to complete this form.
Name

Trending Articles

IFA Talk logo

IFA Talk is our flagship podcast, that fits perfectly into your busy life, bringing the latest insight, analysis, news and interviews to you, wherever you are.

IFA Talk Podcast – listen to the latest episode

Wealth DFM
Privacy Overview

This policy explains how IFA Magazine collects, stores use, and shares personal information (including but not limited to information from which you can be personally identified such as your name, address, job title, company, email address, or telephone number) and information about your visits to the network, including the pages you view, the links you click and other actions taken in connection with www.ifamagazine.com, www.gbinvestments.co.uk, www.robopromedia.com, www.mvpromedia.com.

IFA Magazine Publications Limited may update this Policy at any time. It is your responsibility to check for updates to this Policy, as your continued use of the website denotes an acceptance of this Policy. Unless stated otherwise, IFA Magazine Publications Limited’s current Policy applies to all information that IFA Magazine Publications Limited has about you and your account.