Stock market today: Wall Street opens higher ahead of big week for central banks
By Elaine Kurtenbach And Matt Ott, The Associated Press on June 12, 2023.
NEW YORK (AP) – Wall Street is ticking higher ahead of a big week for central banks and interest rates around the world. The S&P 500 was 0.3% higher early Monday, coming off its fourth straight winning week. The Dow Jones Industrial Average was up 86 points, or 0.3%, while the Nasdaq composite was up 0.4%. Illumina, a gene sequencing test maker, rose 1.8% after its CEO resigned following pressure from an activist investor. Stocks have climbed to their highest level since August on hopes the economy may avoid a recession and the Federal Reserve may soon take it easier on raising interest rates. THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below. Wall Street was on track to open higher early Monday with two inflation reports and an interest rate decision by the Federal Reserve on tap in the coming days. Futures for the S&P 500 gained 0.3% while futures for the Dow Jones Industrial Average ticked up 0.1% before the bell Monday. Many observers expect the Fed to stand pat given recent data showing the U.S. economy slowing. This week also brings data on prices that might indicate whether the Fed is succeeding in snuffing inflation. On Tuesday, the government releases its monthly report on inflation at the consumer level. Most analysts expect that consumer prices rose modestly in May, easing from a bigger-than-expected jump in April. The government on Wednesday issues its report on inflation at the wholesale level, with many economists predicting a small decline in prices. After its meeting Wednesday afternoon, the Fed will announce its latest interest rate decision. While many expect the Fed to leave rates alone for the first time in 15 months, they also suspect that hikes will resume later this summer. In corporate news Monday, the technology-heavy Nasdaq securities exchange is buying Adenza, which makes software used on Wall Street, for $10.5 billion in cash and stock. Nasdaq has been pushing further into technology, expanding beyond its role as a marketplace for trading. Nasdaq shares fell almost 8% before the bell. In Europe, Switzerland’s UBS said it has completed its takeover of embattled rival Credit Suisse in a government-arranged rescue combining the country’s two largest banks to safeguard the country’s reputation as a global financial center and choke off market turmoil. By midday, Germany’s DAX jumped 0.8%, the CAC 40 in Paris advanced 0.7% and Britain’s FTSE 100 edged 0.2% higher. In Asia, Tokyo’s benchmark Nikkei 225 added 0.5% to 32,434.00, while the Hang Seng in Hong Kong gained 0.1% to 19,404.31. In Seoul, the Kospi declined 0.5% to 2,629.35. The Shanghai Composite index edged 0.1% lower, to 3,228.83. Shares rose in Taiwan and India but fell in Bangkok. Australian markets were closed for a holiday. Energy stocks fell early Monday along with the price of crude oil. U.S. benchmark crude sank $1.59 to $68.58 per barrel in electronic trading on the New York Mercantile Exchange. It lost $1.43 on Friday to $70.17 per barrel. Brent crude oil gave up $1.43 to $73.36 per barrel. In currency trading, the dollar inched down to 139.37 Japanese yen from 139.39 yen. The euro rose to $1.0765 from $1.0750. The S&P 500 index’s return to a new bull market last week reflects growing hopes the economy might avoid a severe recession despite the sharp rise in interest rates over the past year as the Fed has strived to bring inflation under control. “The S&P 500 is now at levels it has not seen since last September. The NASDAQ is up 26.68% year-to-date -““ not bad for an economy that seems poised to slip into recession later this year,” ING Economics said in a commentary. The highest rates since 2007 have helped inflation come down some, but it’s still above everyone’s comfort level. On Friday the S&P 500 finished up 0.1%, logging a fourth straight winning week. The Dow Jones Industrial Average added 0.1% and the Nasdaq composite gained 0.2%. – – Kurtenbach reported from Bangkok; Ott reported from Silver Spring, Maryland. 22-21
