Highlights
Stocks were mostly higher Monday with the major indexes flat to slightly better as the market lacked impetus to do much more than hold onto last week's gains. The Dow Jones industrial average firmed 0.2 percent, the S&P 500 gained 0.3 percent and the Nasdaq edged up 0.1 percent. Bond yields were mixed with shorter yields lower and long yields higher. The dollar rose and oil prices declined.
Comments from three Federal Reserve bank presidents caught the market's attention but didn't alter the view that most Fed officials are comfortable with last week's big rate cut but still see the economy holding up well. That scenario and the view that the Fed may yet manage the elusive soft landing continues to underpin the market's mostly bullish view.
US purchasing managers reports came in mixed with notable weakness in manufacturing. Eurozone purchasers reports missed to the downside and China raised hopes for a round of stimulus measures after the People's Bank of China cut the rate on its 14-day reverse repo to 1.85 percent from 1.95 percent.
Investors continued to focus on the prospect that Intel may be acquired by Qualcomm or by private equity. On the macro front, the market appears hesitant to make another move pending news including the employment report due Friday, which bears on the Fed policy outlook, and ahead of the start of earnings season the second week of October.
Among sectors, best were consumer discretionary, industrials, utilities, energy, real estate and materials. Lagging were information technology, communications services and health care.
Comments from three Federal Reserve bank presidents caught the market's attention but didn't alter the view that most Fed officials are comfortable with last week's big rate cut but still see the economy holding up well. That scenario and the view that the Fed may yet manage the elusive soft landing continues to underpin the market's mostly bullish view.
US purchasing managers reports came in mixed with notable weakness in manufacturing. Eurozone purchasers reports missed to the downside and China raised hopes for a round of stimulus measures after the People's Bank of China cut the rate on its 14-day reverse repo to 1.85 percent from 1.95 percent.
Investors continued to focus on the prospect that Intel may be acquired by Qualcomm or by private equity. On the macro front, the market appears hesitant to make another move pending news including the employment report due Friday, which bears on the Fed policy outlook, and ahead of the start of earnings season the second week of October.
Among sectors, best were consumer discretionary, industrials, utilities, energy, real estate and materials. Lagging were information technology, communications services and health care.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
