Stocks rose on Monday after logging their best week this year, as hopes continued to prevail that the Federal Reserve is ready to call an end to tightening.
The tech-heavy Nasdaq Composite (^IXIC) led the mid-morning gains, up roughly 0.3%. The benchmark S&P 500 (^GSPC) rose more than 0.1% while and Dow Jones Industrial Average (^DJI) traded flat.
The major US stock indexes soared on Friday after US jobs growth slowed more than expected and wage inflation cooled, cementing optimism for an end to Fed interest-rate increases that persisted into the new week.
The yield on the 10-year Treasury note (^TNX) ticked up about 7 basis points to trade near 4.63%.
Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
Investors will be listening out for confirmation when several Fed officials step up to speak this week, including two appearances by Chair Jerome Powell. Regional Fed presidents John Williams and Raphael Bostic are among those on the docket.
Some on Wall Street have cautioned that the optimism could be overdone, and to brace for volatility in stocks. Morgan Stanley strategist Mike Wilson warned last week’s stock comeback “looks more like a bear market rally rather than the start of a sustained upswing”.
Meanwhile, the market still has a stream of quarterly earnings ahead, while the calendar is quiet on the economic front. Disney’s (DIS) results due Wednesday are the highlight.
In commodities, oil prices jumped after top exporters Saudi Arabia and Russia confirmed at the weekend that they will continue with their voluntary additional production cuts. West Texas Intermediate crude futures (CL=F), the US benchmark, rose more than 1% to just under $82 a barrel, while global benchmark Brent crude futures (BZ=F) put on a little less than 1% to trade under $86 a barrel.
Disney reveals new CFO Hugh Johnston
Disney (DIS) finally has a new CFO.
The company announced Monday that longtime PepsiCo (PEP) executive Hugh Johnston will be the new Senior Executive Vice President and Chief Financial Officer of the media giant, effective December 4.
Johnston has been at PepsiCo for 34 years where he held multiple leadership positions, including the CFO position, for more than a decade.
He was in that role when PepsiCo successfully fended off a campaign by activist investor Nelson Peltz to break up the company. Peltz is now pushing for multiple board seats at Disney, and the stock has hit record lows.
Disney shares traded flat following the announcement on Monday.
“Hugh’s well-earned reputation as one of the best CFOs in America and his wealth of leadership experience in both financial and operational roles overseeing a diverse portfolio of top global brands make him a perfect addition to Disney’s senior leadership team,” Iger said in a press release.
“His expertise will serve Disney and its shareholders well as we continue the transformative work we are doing to drive growth and value creation.”
Read more here.
AStocks rise after logging best week this year
US stocks opened higher on Monday after logging their best week this year, buoyed by optimism that the Federal Reserve is done raising interest rates.
At the opening bell, the tech-heavy Nasdaq Composite (^IXIC) led the session, up 0.4%, while the benchmark S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) each climbed around 0.3%. The yield on the 10-year treasury (^TNX) ticked up about 6 basis points to trade near 4.62%.
Tesla, BioNTech, and Dish Network: Stocks trending in premarket trading
Here are some of the stocks leading Yahoo Finance’s trending tickers page in premarket trading on Monday:
Tesla (TSLA): Shares rose over 1%. On Monday the EV maker said it plans to build a $26,838 car, which would be its cheapest, at its factory near Berlin.
BioNTech (BNTX)): BioNTech’s shares rose over 3%. The group cut its 2023 revenue target by about $1.1 billion due to lower demand for its Covid vaccine made with Pfizer.
Dish (DISH): Shares fell by over 6% on Monday. It reported revenue of $3.7 billion for the third quarter, versus $4.1 billion in the same period a year ago. Also, the group’s CEO, Erik Carlson, said he would step down.
Lyft (LYFT): Lyft shares rose. The ride-hailing company said price cuts have helped it gain market share from Uber.
KStock futures tick higher as Fed hopes persist
The major US stock gauges were set to build on last week’s gains on Monday amid increased investor confidence that the Federal Reserve is done with rate hikes.
Futures on the Dow Jones Industrial Average (^DJI) were up 0.11%, or 37 points, while S&P 500 (^GSPC) futures added 0.20%. Contracts on the tech-heavy Nasdaq 100 (^NDX) put on 0.22%.
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