, warned Mike Wilson, Morgan Stanley's chief U.S. equity strategist. "With the equity market showing signs of exhaustion after the last Fed meeting, the S&P 500 is at critical technical support," Wilson wrote.Markets pulled back from their lows of last week and managed to stage a rebound. The Dow Jones Industrial Average inched up 0.22%, the S&P increased 0.31% and the Nasdaq Composite rose 0.63%.
Investors felt they had slightly more breathing room after Treasury yields eased from their peaks on Friday, with the interest-rate-sensitive 2-year yield dipping from a 16-year high. As Ross Mayfield, investment strategy analyst at Baird, wrote, "the rapid shift in Fed funds expectations and the spike in short-term yields has been risk-off in the stock market, so some reprieve on rates today will likely boost equities.
Additionally, a decline in orders placed with manufacturers may have given investors a sign of slowing inflation — such signs are increasingly rare. Data released Monday showed that sales of durable goods like appliances, TVs and autos dropped 4.5% in January, worse than analysts' expectations of a 3.6% fall. By contrast, orders increased 5.1% in December. Though a plunge in airplane orders contributed to much of the decline, orders were still down 5.1% when excluding defense.
Earnings reports from major retailers like Target, Costco and Macy's will be released this week and give an indication whether consumer spending will remain strong or start faltering. Regardless of what happens, analysts from JPMorgan's Mislav Matejka to Morgan Stanley's Mike Wilson aren't too optimistic. It might be best to brace for a bumpy landing for the time being.
Nigeria Nigeria Latest News, Nigeria Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Stocks vs cash: Equities are the better long-run bet, says strategistHere are 4 reasons to be wary of holding cash even as the stock market rally breaks down and bond yields surge Berkshire Hathaway sits on $109 billion in cash, is the most successful long term investor business in the world and here's you telling people it's foolish in a falling market to hold cash and cash like investments? 🤡
Source: BusinessInsider - 🏆 729. / 51 Read more »
Bear market playbook before stocks prepare their next bull runThis is the bear market playbook investors should follow as stocks prepare for their next bull run
Source: BusinessInsider - 🏆 729. / 51 Read more »
Source: CNBC - 🏆 12. / 72 Read more »