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US open: Stocks overcome drag from Boeing heading into FOMC

By Alexander Bueso

Date: Monday 18 Mar 2019

US open: Stocks overcome drag from Boeing heading into FOMC

(Sharecast News) - Wall Street is extending last Friday\'s gains, despite the ongoing drag from Boeing, even as investors look to this week\'s Federal Reserve policy announcement.
At 1411 GMT, the Dow Jones Industrial Average was edging higher by 0.06% to 25,865.08, while the S&P 500 was adding 0.39% to 2,832.97 and the Nasdaq Composite was ahead by 0.54% to 7,729.46.

Before the opening bell, James Hughes, chief market analyst at Axi Trader, said: \"Ahead of the U.S open, gold prices are a tad higher for a second consecutive session, as the \'big\' dollar slipped after recent toned-down US data increased chances that the Fed will signal a \'dovish\' policy stance this week.\"

From a sector standpoint, the best performing segments of the market were: Semiconductors (2.99%), Technology hardware (1.99%) and Coal (1.66%).

On a related note, earlier on Monday, analysts at UniCredit Research pointed out how the so-called overnight-index-swap forward curve was already pricing-in just over one 25 basis point interest rate cut for over the next two years - whereas they were forecasting three cuts.

Not at all analysts were of the same opinion, with those at Barclays Research anticipating one hike over that same time span, but expectations for policy had been easing of late.

On the corporate front meanwhile, Boeing shares were down 2% after the Wall Street Journal report that federal prosecutors and officials from the Department of Transportation are investigating the development of the company\'s 737 MAX jetliners.

Elsewhere, deal news was in focus as US financial services technology company FIS agreed to buy payments processor Worldpay in a $43bn deal. Under the terms of the transaction, Worldpay shareholders will be entitled to receive 0.9287 shares and $11 in cash for each of their shares. FIS shareholders will own around 53% of the combined company, while Worldpay shareholders will own the rest.

Dermira shares meanwhile rocketed 99% after the company said its new eczema treatment passed a key study in adult patients with moderate to severe atopic dermatitis.

Overstock was under the cosh as the online retailer released its fourth-quarter results.

Ride-hailing services outfit Lyft was also in the news after the company unveiled plans for an initial public offering that might see it valued at $20bn.

Lastly, on the economic front, the National Association of Homebuilders\' Housing Market Index for February was steady at the previous month\'s level of 62.0 (consensus: 63.0).



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