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US markets crawl into 4-day winning streak as Boeing, Facebook temper gains

Meanwhile, investors are looking ahead to the Federal Reserve meeting Tuesday
Stock market board
The Dow closed up 65 points Monday afternoon

US markets made tepid gains Monday, as losses from Boeing Co (NYSE:BA) and Facebook (NASDAQ:FB) kept things tied down.

Boeing is at the center of an investigation into whether the Federal Aviation Administration used appropriate standards in approving the company’s 737 Max aircraft, according to the Wall Street Journal, an investigation that began before the most recent deadly crash on March 10. The company recovered some of the ground it lost in premarket trading, but still finished down 1.8%.

Facebook lost 3.3%, the biggest drop on the Nasdaq, after being downgraded to Hold from Buy by Needham analyst Laura Martin. Martin cited the company’s struggle to remove livestreams of the New Zealand mass shooting, among other concerns, according to MarketWatch.

Oil prices rose after Saudi Arabia signaled Sunday that the OPEC-led supply curbs of 1.2 million barrels per day may need to extend past June, per CNBC. OPEC+ cancelled their April meeting.

Investors are also anticipating the Federal Reserve meeting, which begins Tuesday.  A rate hike is not expected, according to the CME Group’s FedWatch Tool, after the Fed said it would be “patient” in raising rates at its last meeting.

The Dow Jones Industrial Average gained 0.3% points to 25,014.1, the Nasdaq grew 0.3% to 7,714.5 and the S&P advanced 0.4% to 2,832.9.

The Russel 2000 small-cap index rose 0.7% to 1,563.9.

In Toronto, the S&P/TSX Composite Index increased 0.7% to 16,251.4.

1:21 pm: US markets stuck in first gear as Boeing, Facebook weigh down Wall Street

Wall Street was flat Monday afternoon, as the major indices were held down thanks to declines by Boeing Co (NYSE:BA) and Facebook Inc (NASDAQ:FB).

Boeing tumbled 2.6 after it was revealed that the Federal Aviation Administration was under investigation regarding whether it used appropriate standards in approving the company’s 737 Max planes, according to the Wall Street Journal.

Facebook, meanwhile, was the biggest loser on the Nasdaq, falling 3.4% after a Needham analyst downgraded the social media titan to Hold from Buy, per CNBC.

Investors are also anticipating the upcoming Federal Reserve meeting, which begins Tuesday.

The Dow Jones Industrial Average gained less than 10 points to 25,858.2, the Nasdaq grew 0.1% to 7,697.2 and the S&P advanced 0.2% to 2,828.6.

The Russel 2000 small-cap index rose 0.3% to 1,557.6.

In Toronto, the S&P/TSX Composite Index increased 0.5% to 16,219.9.

Across the pond, the FTSE closed up nearly 1% at 7,299.2, and the CAC finished 0.1% ahead at 5,412.8 in Paris. 

10:24 am: Wall Street opens ahead despite Boeing putting pressure on the Dow

US markets opened higher Monday morning, with the Dow lagging slightly behind.

Boeing Co’s (NYSE:BA) continued to tumble after a report from the Wall Street Journal on Sunday revealed a federal investigation into the FAA’s approval of the company’s 737 Max planes, which kept the industrial average flat.

Investors are anxiously awaiting a meeting of the Federal Reserve, which begins Tuesday. A rate hike is not expected, according to the CME Group’s FedWatch, after the Fed said it would be “patient” in raising rates at its last meeting.

The Dow gained less than 0.1% to 25,866.3, the Nasdaq advanced 0.5% to 7,727.1 and the S&P 500 grew 0.4% to 2,833.

The small-cap Russell 2000 index advanced 0.8% to 1,566.3.

In Toronto, the S&P/TSX Composite Index was up 0.3% to 16,192.3.

European markets also fared well. In London, the FTSE rose 0.8% to 7,285.1, and the French CAC was up just 2.7 points to 5,408.5 in Paris.

7:57 am: Wall Street shares set for mixed open as Brexit and Central Banks news likely to dominate trading week

Wall Street indices are poised to start the new trading week mixed after a positive close Friday and after Asian markets gained as investors await a week likely to be dominated by Brexit and Central Bank news.

The Nikkei 225 added 133 points on Monday and the Shanghai Composite index gained over 74 as traders remain upbeat on a potential resolution to the US-China trade spat.

In company news, airline Boeing Co (NYSE:BA) is flying lower in pre-market deals following more negative headlines about its passenger aircraft, the 737 MAX, which has been grounded following two horrific crashes.

In other news, Uber competitor Lyft is reportedly targeting a valuation of up to $23 billion in its initial public offering (IPO).

In other big news Monday morning, Worldpay Inc (LON:WPY) is to merge with US payments peer FIS just a year after completing a merger with Vantiv, another US-based payment group.

On Friday, the Dow Jones Industrial Average finished up 138 at 25,848 and futures today are down 36.

The tech-laden Nasdaq index gained 57 at 7,688, while futures Monday are up around 11 points. The S&P 500 closed up 14 and today is expected to add nearly four points at the open.

Dean Popplewell, market analyst at Forex group Oanda, noted: "Global equities start Monday on the front foot in a week that is packed with geopolitical (Brexit, E.U summit – Mar 21/22), economic releases and central bank meetings (FOMC, BoE, SNB), events that are expected to have a significant impact on both markets and volatility."

He said that the Federal Reserve, Bank of England and Swiss National Bank are all expected to sound ‘dovish’ this week when they make interest rate decisions.

In London at the time of writing, the FTSE 100 is ahead by around 50 points at 7,278, but the German DAX is down around 13. The French CAC 40 is up around seven points at 5,413.

In Toronto, the TSX on Friday added around 52 points to stand at 16,140.


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