© Reuters
Investing.com – Stock futures on Wall Street are starting the new trading week mixed. The Federal Reserve's monetary policy is likely to be the focus for markets, especially when the highly anticipated February jobs report is released on Friday. Elsewhere, an investor group is increasing its takeover bid for department store chain Macy's (NYSE:), while Super Micro Computer (NASDAQ:) is set to join the benchmark later this month.
1. Futures mixed
US stock futures moved on either side of the flatline on Monday, with a red-hot equity rally showing some signs of cooling ahead of further evidence on Federal Reserve monetary policy and new developments in the US presidential election.
As of 3:24 a.m. ET (08:24 GMT), the contract had lost 60 points, or 0.2%, was down 3 points, or 0.1%, and was up 22 points, or 0.1%.
Major averages ended the previous trading week higher after weak economic data and comments from Federal Reserve officials supported hopes of a rate cut by the Federal Reserve later this year. A measure of manufacturing activity in the world's largest economy remained in decline territory for a 16th straight month, while consumer surveys from the University of Michigan fell more than expected.
Elsewhere, Fed Governor Christopher Waller said the size of the bank's balance sheet had no impact on its ongoing battle against inflation, raising expectations of a possible future rate cut.
2. Jobs report, retail earnings due this week
Friday's monthly jobs report will headline the economic calendar this week as investors try to gauge the timing of the Fed's first interest rate cut.
Markets are currently betting that the central bank could start cutting borrowing costs from their more than two-decade peak in June. But signs of continued strength in the labor market could make it harder for traders to shake off worries that inflation could rise again if the Fed begins easing too soon.
Economists expect the economy added 190,000 jobs in February after a stunning gain of 353,000 jobs in January, the largest in a year. The unemployment rate is expected to remain stable at 3.7%, while wage growth is expected to moderate.
On the earnings side, a slowing stream of corporate results will impact major retailers such as: B. include Goal (NYSE:), Costco (NASDAQ:) and Kroger (NYSE:). The yields could help flesh out the picture of U.S. consumer demand, which has been hurt recently by high inflation and elevated interest rates.
3. Investor group increases Macy's takeover offer
An investor group consisting of Arkhouse Management and Brigade Capital increased its bid to take department store chain Macy's private just months after the company rejected an earlier offer.
The group is now offering $24 in cash per Macy's share, up from its previous offer of $21 per share, it said in a news release late Sunday. The offer is a 33% premium to Macy's closing price on Friday and values the chain at about $6.6 billion.
Arkhouse said the group would be open to a further increase in the takeover price. Macy's said in a statement Sunday that its board would review the new proposal.
The increased offer is the second after a previous offer was rejected in November. This also comes after Macy's announced a major restructuring effort that will see the company cut costs, reduce inventory and close 150 stores over the next three years.
4. Super Micro Computer joins the S&P 500
Shares of Super Micro Computer jumped in U.S. premarket trading on Monday after S&P Dow Jones Indices said the seller of artificial intelligence-optimized servers will be added to the benchmark S&P 500 later this month.
Following Friday's statement, Super Micro's share price jumped in after-hours trading. About $10 billion worth of shares in the company were exchanged, more than tech giants Microsoft (NASDAQ:) and Amazon (NASDAQ:).
As a provider of cutting-edge servers powered by Nvidia's (NASDAQ:) AI chips, Super Micro has been one of the big beneficiaries of growing enthusiasm for the potential applications of the emerging technology. The company's stock price has risen more than 217% so far this year, pushing its market capitalization to over $50 billion.
In addition to Super Micro, sportswear company Deckers Outdoor (NYSE:) will also be added to the S&P 500. The two companies will replace appliance major Whirlpool (NYSE:) and Utah-based lender Zions Bancorporation (NASDAQ:), respectively. on the index.
5. Oil prices subdued
Crude oil prices were largely subdued in European trading on Monday, as support from oil major OPEC+'s attempt to maintain its current pace of production cuts through the second quarter was tempered by calls from senior U.S. officials for an immediate ceasefire between Israel and Hamas.
Oil markets posted strong gains in the past two weeks, supported by expectations of tighter supply this year, while optimism over a possible decline in U.S. interest rates also boosted sentiment.
The momentum was slowed somewhat by a call from US Vice President Kamala Harris on Sunday for Hamas to immediately accept a six-week ceasefire. She also called on Israel to offer more aid to Gaza. Her comments were among the harshest ever made by a senior U.S. official about the ongoing war, potentially signaling the country's diplomatic intervention in the conflict.
May oil expiry rose 0.1% to $83.67 a barrel, while May oil was up 0.1% to $79.17 a barrel by 3:16 a.m. ET.
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