Wall Street Today | S&P 500 Slips, Alaska Air Tanks, Gold Retreats From Record
RECAP
US Stocks Slip, Yields Creep Higher
US stocks slipped, while yields creeped higher as investors await more economic data that could offer clues on the trajectory of interest rates after US Federal Reserve Chair Jerome Powell last week pushed back against market expectations of aggressive cuts next year.
The $S&P 500 Index(.SPX.US$ fell 0.5% to 4,569.78 while the $Dow Jones Industrial Average(.DJI.US$ slipped 0.1% to 36,204.44. The $Nasdaq Composite Index(.IXIC.US$ declined 0.8% to 14,185.49.
Investors expect further fall in U.S. jobs openings, less than 200,000 job additions last month with slightly higher pay on month-on-month basis," MarketWatch quoted Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, as saying. "The softer the data, the better the chances of keeping the Fed hawks away from the market."
MACRO
Factory Orders Decline
Factory orders fell more than expected in October, weighed down by the transportation sector, Dow Jones reported, citing data from the Commerce Department said Monday.
Orders for manufactured goods slipped 3.6%, worse than the 3.5% expected by economists surveyed by the Wall Street Journal. That’s the second decline in the past eight months.
Durable-goods orders declined 5.4% in October, while non-durable goods orders fell 1.9%, according to the report.
SECTORS
Oil, Gold Decline as Bitcoin Outperforms
Oil futures fell to the lowest since mid-November amid growing skepticism over whether the members of the Organization of Petroleum Exporting Countries and its partners will follow through with their announced voluntary production cuts at a time when output in the US has been rising.
$Crude Oil Futures(JUN4)(CLmain.US$ slipped 1.2% to $73.17, posting its third straight decline.
Gold futures pulled back as investors cashed in their gains from the preciously metal’s rally to a record high. Expectations that the US Federal Reserve could start cutting interest rates next year have boosted the investment appeal of the commodity that doesn’t offer any yield.
BullionVault users sold 2.5 times as much gold as they bought as a group over the last seven days, Dow Jones reported, Adrian Ash, director of research at the company.
Bitcoin outshined gold Monday, surging above $42,000 for the first time since early 2022. The rally has allowed El Salvador to post a positive return for the first country to adopt the crypto as a legal currency. The country's holdings, now valued at over $130 million, is up 2.8% since 2021, President Nayib Bukele said in a post on X, formerly known as Twitter.
COMPANIES
Alaska Air to Buy Hawaiian Airlines
$Alaska Air(ALK.US$ shares tumbled 14%, the biggest decline on the S&P 500, after the company said it agreed to buy Hawaiian Airlines for $1.9 billion, including debt. The complexity of executing the deal could hurt sentiment toward the acquiring company, Dow Jones reported, citing Raymond James.
$Hawaiian Holdings(HA.US$, the parent of the airline, saw its shares climb 193% to $14. 22, closing in on the $18 a share in cash that Alaska Air agreed to pay for the merger that will turn the combined company into the fifth largest US airline.
Richard Branson Sends Virgin Galatic Tumbling 18%
$Virgin Galactic(SPCE.US$ shares slumped 18% after founder Richard Branson told the Financial Times that his business empire won’t be infusing more capital into the space-tourism company, saying it should have sufficient funds to do its job on its own.
The company founded by Branson in 2004 last month reported worse-than-expected first quarter loss last month, according to Dow Jones.
Coinbase Joins Bitcoin Party
$Coinbase(COIN.US$ advanced more than 5% while Bitcoin mining shares gained Monday after the price of the most-traded cryptocurrency briefly climbed above the $42,000 level for the first time in more than a year. $Riot Platforms(RIOT.US$ and $Marathon Digital(MARA.US$ also advanced.
Source: Bloomberg, Dow Jones, CNBC, Reuters
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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