(For a Reuters live blog on U.S., U.K. and European stock markets, click LIVE/ or type in a news window.)
*
Macy's Rises as Investors Make $5.8 Billion Takeover Offer
*
Cigna Faces Report It's Abandoning Humana Deal; Share buyback
*
Futures: Dow flat, S&P down 0.05%, Nasdaq slips 0.13%
(Updated at 7:13 a.m. ET/1213 GMT)
By Shristi Achar A and Johann M Cherian
Dec 11 (Reuters) – U.S. stock index futures were lackluster on Monday ahead of an eventful week that will see the Federal Reserve interest rate meeting and inflation data test the economy, among other things.
Positive sentiment surrounding the stabilization of interest rates and robust quarterly earnings led stocks to rally towards the end of the year, with the benchmark S&P 500 within touching distance of its highest intraday reading of the year of 4,607.07 points, reached earlier in the year July had been reached.
The S&P 500 and Nasdaq also posted their highest close since early 2022 on Friday after data showed nonfarm payrolls were higher than expected, underscoring hopes that the world's largest economy can control inflation without in slipping into a recession.
The focus now shifts to consumer price index (CPI) data due on Tuesday, which is expected to show headline inflation unchanged in November, as well as the Fed's final interest rate decision of the year, due on Wednesday.
While money markets have almost fully priced in a pause in rate hikes for the upcoming session, bets for a rate cut next year have been trickling down, with traders seeing a 40.2 percent chance of a rate cut of at least 25 basis points in March 2024 and a probability of 50, 6% in May, according to CME Group's FedWatch tool.
However, analysts say markets have pinned their hopes on an overly optimistic scenario.
“We believe the market is right to not expect a rate hike in December, but too many rate cuts are being priced into the market next year,” said RBC Wealth Management's Frédérique Carrier, head of investment strategy in the British Isles.
The story goes on
“There are some signs that the labor market may be losing some momentum, but there is not that weakness that we think would be necessary for the Fed to be much more aggressive in its rate cuts.”
The European Central Bank and the Bank of England will also announce their interest rate decisions later this week.
Pressured on futures tracking Nasdaq, megacap stocks including Alphabet, Tesla and Amazon.com fell between 0.3% and 0.9% before the bell.
As of 7:13 a.m. ET, Dow E-minis were flat, S&P 500 E-minis lost 2.5 points, or 0.05%, and Nasdaq 100 E-minis lost 20.25 points, or 0.13% .
Macy's, among others, rose 18.3% after an investor group consisting of Arkhouse Management and Brigade Capital made a $5.8 billion offer to privatize the department store chain, according to a source familiar with the matter.
Rivals Kohl's and Nordstrom also rose about 4.5% and 3.2%, respectively.
Cigna rose 11.9% after the health insurer ended negotiations to acquire rival Humana and announced plans to buy back $10 billion in shares, according to sources.
Crypto stocks including Riot Platforms, Coinbase and Marathon Digital slipped between 3.3% and 5.0% as Bitcoin fell to a week's low. (Reporting by Shristi Achar A, Johann M Cherian and Shashwat Chauhan in Bengaluru; Editing by Pooja Desai)
Comments are closed.