Wall Street: Wall Street is moving higher
Technical climb.
(ABM FN-Dow Jones) US stocks are trading higher on Monday, with few trading hours remaining. The Standard & Poor’s index increased by 0.6 percent to 3,995.59 points, the Dow Jones rose 0.5 percent to 32,974.97 points, and the Nasdaq rose 1.0 percent to 11,506.87 points.
CMC Markets analyst Michael Hewson talks about a technical rally after Wall Street’s dip before the weekend.
Last week, US inflation appeared to be more stubborn than expected, while the US economy continues to perform well, giving the Federal Reserve room to continue raising interest rates.
Personal consumption expenditures inflation was a negative surprise on Friday. While core inflation was expected at 4.4 percent in January, core prices rose 4.7 percent.
This “settled hopes of an early break in the interest rate,” according to IG analyst Salah Buhamidi. This means that the Fed can pursue a more aggressive interest rate policy.
US bond yields rose last week, but fell on Monday.
On a macro level, new durable goods orders fell more than expected in January. Applications decreased by 4.5 percent. Anticipated home sales rose more than 8 percent in January.
The euro/dollar is trading at 1.0603. WTI oil has become more than half a percent cheaper.
Company news
Seagen is trading up 10 percent after The Wall Street Journal reported that Pfizer is in talks with the biotech company about an acquisition of more than $30 billion. Pfizer fell 1.5 percent.
US Li Auto certifications fell 1 percent after the Chinese electric car maker reported better-than-expected results and said it expects first-quarter shipments to rise as much as 73 percent from a year earlier.
Tesla wins by 5.5 percent. Tesla’s factory near Berlin is now producing 4,000 cars a week, three weeks ahead of schedule, according to a Reuters report.
Union Pacific shares rose 9.5 percent after the company said it plans to name a new CEO this year, following pressure from New York hedge fund Soroban Capital Partners to replace CEO Lance Fritz.
Warren Buffett’s Berkshire Hathaway is falling slightly. The investor had lower results in the fourth quarter of 2022 due to negative currency effects. Operationally, Berkshire posted record profits in 2022, of about $31 billion.
The New York Times reported, citing sources, that Twitter laid off another 200 employees over the weekend.
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