Wall St muted as investors focus on earnings, Fed cues

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Wall Street's main indexes were little changed on Monday as investors awaited more bank earnings and views from Federal Reserve policymakers that could provide cues on when the central bank will pause its monetary tightening.

"Regional bank earnings will come in very slightly positive, while bigger banks will probably post surprisingly positive results," said Sam Stovall, chief investment strategist at CFRA Research.profits at S&P 500 companies to have declined 4.8% in the first quarter of 2023 from the year-earlier period, according to Refinitiv data, a slight improvement from last week's forecast of a 5.2% decline.

"Inflation fire has really been put out, but we're going to continue to pour water over it until we feel confident that it is so," Stovall said, adding that people were bracing for a deep recession that just might not come.rates by 25 basis points to the 5.00%-5.25% range next month, but recent economic data signaling a slowing U.S. economy have intensified debate over whether it will be the last in this cycle.

Traders' bets of a 25-bps hike in May have risen to 85% from 78% last week, according to CME Group's Fedwatch tool. U.S. Treasury yields touched session highs after data showed business conditions in New York state unexpectedly bounced back to expansion territory in April after slumping in the previous month.

 

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