Wall Street Today | Stocks Approach Two-month Highs Amid OpenAI Drama
RECAP
Stocks Approach Two-month Highs Amid Fed Rate Optimism, Tech Drama
U.S. stocks edged higher Monday to begin a holiday-shortened week, as investors remained cheered by expectations that the Federal Reserve has finished raising rates. The tech sector faced drama over the sudden ousting of Sam Altman as CEO of OpenAI and subsequent absorption into $Microsoft (MSFT.US)$'s new AI devision.
The $Dow Jones Industrial Average (.DJI.US)$ rose 62 points, or 0.2%, to 35,010.The S&P 500 SPX was up 20 points, or 0.46%, $Nasdaq Composite Index (.IXIC.US)$ gained 111 points, or 0.79%.
The holiday-shortened week started tentatively as markets paused after recent strong gains. U.S. markets will be closed Thursday for the Thanksgiving Day holiday. Stock and bond markets will close early on Friday.
MACRO
Barkin: Inflation Does Seem To Be Settling, But The Job Is Not Done
Richmond Federal Reserve Bank President Tom Barkin said Monday that inflation has come down nicely, but some businesses are planning to keep raising prices — and that means the Fed should hold rates at relatively high levels for a long time.
“I see inflation being stubborn, and that makes the case for me being higher for longer,” Barkin said in an interview with Fox Business, referring to the level of interest rates.
Treasury Yields Fall After Auction of 20-year Bonds Sees Strong Demand
A batch of $16 billion in freshly issued 20-year Treasury bonds saw strong demand on Monday, pushing Treasury prices higher. Stocks saw a push as Treasurys popped after the auction, as yields on the 10-year note and 30-year Treasury bond fell. Bond yields move inversely to prices, falling as prices increase.
The yield on the 10-year was down 2.3 basis points at 4.416%, and that of the 30-year bond was off three basis points at 4.565% shortly after the results were announced, according to FactSet data, having erased a slight increase from earlier in the session.
Yellen Says Progress Made On Inflation Battle, Urges 'Critical' Aid For Ukraine, Israel
U.S. Treasury Secretary Janet Yellen highlighted "considerable progress" made in curbing inflation during an interview with CNBC on Monday. Yellen emphasized the simultaneous achievement of inflation control and economic strength, framing it as good news for Americans. Reflecting on the Biden administration's economic strategies, Yellen said: "Our job is to explain to Americans what President Biden has done to improve the economy." She expressed confidence that as inflation eases and the labor market stays strong, the public will recognize the progress made.
SECTORS
Oil Prices Extend Gains as OPEC Considers More Cuts
Crude prices were rising early Monday, extending gains from the end of last week. The increases follow a report in the Financial Times saying Saudi Arabia will prolong voluntary output restrictions into next year, while the rest of the Organization of the Petroleum Exporting Countries (OPEC) is considering further cuts.
Prices had dropped to a four-month low on Thursday and notched a fourth week of declines last week. The reasons for that include concern that global energy demand may be weakening along with the economy, as well as relief that the latest war in the Middle East hadn't spread to directly involve oil-producing countries such as Saudi Arabia or Iran. Inventories have also been building up in storage facilities in Cushing, Okla.
Sentiment may now be shifting. OPEC members were reported to not only be worried about declining prices, but also unhappy with the Israel-Hamas war and humanitarian conditions in Gaza, the FT said, citing unidentified people familiar with the discussions.
MOOVERS
Microsoft Snatches up Sam Altman after Co-Founder Booted from OpenAI
Just before the market closed on Friday, OpenAI announced the board had removed Co-Founder Sam Altman as CEO. President and co-founder Greg Brockman stepped down right after Altman was fired. The unprecedented move sent the tech world into drama. $Microsoft (MSFT.US)$, an investor in OpenAI, said it would hire former employees under Altman in a new AI division.
U.S.-Listed Argentine Stocks YPF, Galicia and Others Soar 20%+ as Outsider Wins Election
$Global X Funds Global X Msci Argentina Etf (ARGT.US)$ surged some 13% intraday.rose sharply Monday after outsider Javier Milei won the country's presidency. $Grupo Financiero Galicia (GGAL.US)$ added as much as 26.5%, while fellow Argentine financials $Banco Macro (BMA.US)$, $Grupo Supervielle (SUPV.US)$ and $Banco BBVA (BBAR.US)$ all rose more than 20% intraday. So did Argentine telecom $Cresud (CRESY.US)$, which gained as much as 26.4%.
Penn Entertainment Shares Climb 7+% After Getting an Analyst Upgrade on ESPN Bet Outlook
$Penn Entertainment (PENN.US)$ is looking like an enticing bet. The gambling company gets an upgrade to buy from neutral from analysts at Bank of America Securities based on the outlook for ESPN Bet, which was formed out of a $1.5 billion sports-betting deal with ESPN in August.
Iovance Biotherapeutics Soars Some 10% with Goldman Rating
$Iovance Biotherapeutics (IOVA.US)$ jumped 9.5% Monday on a "Buy" rating from Goldman Sachs. In February, IOVA will receive an FDA decision on a melanoma-treating drug that would go directly into production.
Zoom Shares Rise AfterEarnings Beat
$Zoom Video Communications (ZM.US)$Shares Rise Over 5% After Adjusted EPS Forecast Beats Estimates.
Source: Bloomberg, Dow Jones, CNBC
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