The S&P 500 closed near the flat line on Monday as investors looked ahead to pivotal inflation readings.
April’s CPI report is due Wednesday, followed by the producer price index on Thursday.
There are just a few precious weeks remaining for Congress and the White House to reach a debt-limit accord and avoid “an economic and financial catastrophe.” That makes tomorrow’s meeting between President Biden and Speaker Kevin McCarthy all the more pivotal as a deadline looms for the US to potentially run out of cash.
However the differences between Congress and the Biden administration are vast. Republicans want to reduce the country’s $31.4 trillion debt through spending cuts, while the White House views tax increases on companies and wealthy Americans as the best way to reduce the burden.
Overnight the broad market index was little changed with a small gain of 0.05 per cent, ending the session at 4,138.12. The Nasdaq Composite added 0.18 per cent, closing at 12,256.92. The 30-stock Dow Jones Industrial Average slipped 55.69 points, or 0.17 per cent, to end at 33,618.69.
Meanwhile, select bank shares ticked higher to begin the week. Shares of PacWest gained 3.6 per cent. Late Friday evening, the bank announced that it would cut its dividend to just 1 cent per share from 25 cents per share in the prior quarter. Western Alliance shares ended the day up about 0.6 per cent. Big banks Wells Fargo and JPMorgan Chase also rose.
Meanwhile, Berkshire Hathaway Class A shares rose 1 per cent. On Saturday, Warren Buffett’s conglomerate reported its first-quarter results. The company reported a huge jump in first-quarter profits thanks to investment gains, but more muted results across its operating businesses.
Echoing dour comments by Munger, Buffett warned of a continued economic downturn, thanks to higher interest rates and lower consumer spending.
Overnight, sectors were mixed. Communication Services was the biggest winner, by far, whilst Real Estate was the biggest laggard.
Futures
The SPI futures are pointing to a 0.1 per cent fall.
Currency
One Australian dollar at 7:10 AM is buying 67.81 US cents..
Commodities
Iron ore futures are pointing to a 2.76 per cent gain.
Gold added 0.41 per cent. Silver lost 0.37 per cent. Copper gained 1.20 per cent and oil jumped 2.55 per cent.
Figures around the globe
Across the Atlantic, European markets closed mixed. London’s FTSE was closed, Frankfurt shed 0.05 per cent while Paris closed 0.11 per cent higher.
In Asian markets, Tokyo’s Nikkei lost 0.71 per cent, Hong Kong’s Hang Seng added 1.24 per cent while China’s Shanghai Composite closed 1.81 per cent higher
Yesterday, the Australian sharemarket closed 0.78 per cent higher at 7276.
Ex-dividends
United Overseas Aust (ASX:UOS) is paying 2 cents unfranked
Dividends payable
Duratec (ASX:DUR)
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap. Disclaimer
The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.
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Source: Finance News Network
