FYI: Major U.S. stock indexes swung between small gains and losses Monday as investors looked ahead to meetings later this month where central bankers are expected to cut interest rates.
The Dow Jones Industrial Average rose 38 points, or 0.4%. The S&P 500 was down 0.1%, while the Nasdaq Composite fell 0.19%.
Monday’s move puts a pause on major indexes’ advance after two consecutive weeks of gains for stocks. Analysts said there was little new information to drive shares Monday.
Last week’s weaker-than-expected August jobs report reinforced expectations that the Fed would cut interest rates by at least a quarter of a percentage point next week. Lower interest rates tend to spur investors to buy riskier assets, such as stocks, over bonds, gold and other havens. This time is no different, with expectations of looser monetary policy contributing to most of the stock market’s gains this year, analysts have said.
Still, there is disagreement over how much the Fed should cut rates, leaving the stock market potentially vulnerable if the Fed fails to enact a more aggressive pace of rate cuts.
Treasury yields pared some of their gains after the Federal Reserve Bank of New York said Monday that inflation expectations a year and three years from now fell in August.
Rising yields helped lift the S&P 500’s financials sector, which was one of the biggest gainers Monday, rising 1.4%.
Beyond Monday’s broad gains, some individual stocks outpaced the broader market. Shares of AT&T jumped 2.7% after the activist investor Elliott Management disclosed a $3.2 billion stake in the company and released a letter to the board laying out a series of potential changes that it said could boost the stock.
Elsewhere, the Stoxx Europe 600 slipped 0.3%. Data released Monday showed German exports unexpectedly rose in July, a bright spot following a string of negative economic data from Europe’s biggest economy, though analysts said concerns remained that U.S.-China trade tensions could affect the German economy.
In commodities, Brent crude oil rose about 1.8% to $62.64 a barrel after Saudi crown prince Mohammed bin Salman appointed Prince Abdulaziz bin Salman, an experienced oil official and son of the country’s king, as head of the powerful energy ministry. Prince Abdulaziz is expected to continue OPEC’s efforts to bolster energy prices by cutting production.
Regards,
Ted
Bloomberg Evening Briefing:
https://www.bloomberg.com/news/articles/2019-09-09/your-evening-briefingMarketWatch:
https://www.marketwatch.com/story/stock-futures-point-higher-as-investors-look-to-central-banks-for-stimulus-2019-09-09/printWSJ:
https://www.wsj.com/articles/global-stocks-tick-higher-on-china-stimulus-11568016549Bloomberg:
https://www.bloomberg.com/news/articles/2019-09-08/asian-stocks-set-for-muted-start-to-the-week-markets-wrap?srnd=premiumIBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-extends-win-streak-5-big-stocks-rally/CNBC:
https://www.cnbc.com/2019/09/09/dow-futures-move-higher-investors-wake-to-new-chinese-exports-data.htmlReuters:
https://uk.reuters.com/article/us-usa-stocks/stimulus-hopes-buoy-wall-street-financials-lead-gains-idUSKCN1VU17YU.K:
https://uk.reuters.com/article/uk-britain-stocks/uk-bluechips-give-up-gains-as-sterling-strengthens-idUKKCN1VU0KUEurope:
https://www.reuters.com/article/us-europe-stocks/european-stocks-close-down-as-london-lags-banks-shine-idUSKCN1VU0L6Asia:
https://www.cnbc.com/2019/09/09/asia-markets-september-9-us-china-trade-china-economy-currencies.htmlBonds:
https://www.cnbc.com/2019/09/09/us-treasury-yields-higher-ahead-of-new-data.htmlCurrencies:
https://www.cnbc.com/2019/09/06/forex-markets-us-economic-data-in-focus.htmlOil:
https://www.cnbc.com/2019/09/09/oil-markets-saudi-arabia-in-focus.htmlGold:
https://www.cnbc.com/2019/09/09/gold-markets-monetary-policy-in-focus.htmlWSJ: Markets At A Glance:
https://markets.wsj.com/usMajor ETFs % Change:
https://www.barchart.com/etfs-funds/etf-monitorSPDR's Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-trackerSPDR's Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectorsCurrent Futures:
https://finviz.com/futures.ashx 
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