|Day's range||2,821.99 - 2,835.41|
|52-week range||2,346.58 - 2,940.91|
Expectations are that the Fed will point the way to just one rate hike in 2019 when it meets Wednesday. In Asia, central banks in Indonesia, the Philippines and Thailand hold policy meetings amid expectations they too will stand pat, though may signal some willingness to cut in coming months as low inflation sweeps across the region. Here are some key events coming up this week:Company earnings include FedEx, China Telecom, Tencent, Porsche, BMW, Hermes, Tiffany, Micron, Nike and PetroChina.The Fed is expected to hold interest rates steady, announce plans for the end of asset roll-off from its balance sheet, and lower projections for the number of interest-rate hikes this year.
All three major indexes closed in positive territory, despite reports that a meeting between President Donald Trump and Chinese President Xi Jinping may not happen until June. Investors are feeling relatively upbeat as they await news from global central banks this week, including the Federal Reserve on Wednesday. The Dow Jones Industrial Average rose 65.23 points, or 0.3%, to 25,914.1, while the S&P 500 ticked up 10.46 points, or 0.4%, to 2,832.94 and the Nasdaq Composite added 25.95 points, or 0.3%, to 7,714.48.
U.S. equity benchmarks rose at the start of a week filled with potentially significant catalysts -- from central bank meetings, geopolitical developments and economic data. Financials and consumer stocks also advanced, while the Dow Jones Industrial Average fought to stay positive even as Boeing declined on reports that the U.S. Transportation Department was examining the 737 Max’s design certification. Equities have been trending upward, and volatility declining, on expectations the Fed will point the way to just one rate hike in 2019 when it meets this week.
Equity strategist Anthony Golub sees the index heading to 3025, based on expanding valuation multiples. Many fund managers haven’t re-risked their portfolios, he writes.
Berkeley law professor also implied that the indexes on which the funds are based could be subject to manipulation and other abuses. Technically speaking, index funds don't track a nebulous groups of stocks, but rather very specific indexes. For starters, index-based mutual funds and exchange-traded funds get assembled using a particular methodology that determines the specific holdings in that index.
Investing.com – The S&P; 500 closed higher Monday as gains in energy and consumer discretionary stocks helped offset falls in shares of Boeing and Facebook.
The market has been on fire since it bottomed on Dec. 24, but comparisons to one of the worst declines of the Great Depression appear to be wishful thinking.
Investors were still feeling relatively upbeat as they await news from central banks this week, including the Federal Reserve on Wednesday.
Wall Street looked positive to kick off the trading session on Monday, reaching towards fresh, new high as we have rallied quite nicely over the last couple of weeks.
“The flows show confidence in an accommodative Fed is starting to outweigh concerns over the lateness of the cycle for many investors, although some are still choosing to play this a bit more safely with quality and low-volatility ETFs,’’ said Eric Balchunas, senior ETF analyst for Bloomberg Intelligence. This appetite for a broad basket of U.S. equities would stand in stark contrast to many of 2019’s early trends. Quadruple witching -- the expiration of futures and options on indexes and individual stocks that typically spurs a lot of trading activity -- may have contributed to these flows.
The $2.3 billion SPDR S&P Bank ETF, ticker KBE, hadn’t seen a single day of inflows since January, but that changed Friday when investors deposited $38 million into the fund. State Street’s broader sector fund, the Financial Select Sector SPDR Fund, ticker XLF, also caught a bid with its second largest weekly inflow this year. The sudden investor interest comes ahead of this week’s Federal Open Market Committee meeting, in which the Federal Reserve’s so-called dot plot, plans for its balance sheet and economic projections will be in the spotlight.
The chief U.S. equity strategist at Credit Suisse boosted his year-end forecast for the S&P 500 by 100 points to 3,025, a level that represents a 7 percent increase from Friday’s close. Growth in corporate profits is slowing more than expected, but improving sentiment means investors will be willing to pay a higher multiple for stocks, Golub says.
FEATURE Mixed Monday. Stocks look undecided to start the week, with Dow Jones Industrial Average futures down 0.2%, S&P 500 futures up 0.1%, and the Nasdaq Composite roughly flat ahead of the open. ...
Based on the early price action and the current price at 2830.00, the direction of the June E-mini S&P 500 Index the rest of the session will likely be determined by trader reaction to the October 17 main top at 2836.50.
It’s a “Flo Rida market structure’’ in the eyes of Jefferies Chief Market Strategist David Zervos, who channels the hit to describe the primary features of the current financial and macroeconomic backdrop. “Grinding all these lows even lower over the next few months seems like the most probable path,’’ Zervos wrote. The labor market has been getting ever tighter, wage growth is picking up, and a sustained, broad acceleration in general price pressures has not yet manifested.
Equity markets are rising after the recovery of demand for risky assets. S&P 500 closed last week at the highs since October, finally convincing everyone of overcoming an important resistance at 2800 points. Shanghai blue-chip index China A50 rose 2.7% on Monday, closing at the highs area since April last year.
The biggest-ever deal in the payments industry broke at the crack of dawn when Fidelity National Information Services agreed to buy Worldpay for about $34 billion in cash and stock, sending Worldpay’s shares up 10% pre-market. Exxon Mobil may be volatile Monday after America’s third-largest refinery caught fire in Texas. Hedge funds Knighthead Capital Management LLC, Redwood Capital Management and Abrams Capital Management said in a filing late Friday that they united to press PG&E for a leadership change.
Tighter monetary policy by the Federal Reserve that the central bank now worries it may have overdone. At that time, the Fed ended its interest-rate hiking cycle and cut the federal funds rate with no ensuing recession. Policy makers want higher rates in order to have significant room to cut in the next recession, and the current 2.25 percent to 2.50 percent range doesn’t give them much leeway.