The Dow booked its fourth gain in a row
U.S. stocks saw choppy trade on Monday, 09 September 2019 as investors weighed Beijing and Washington's plan to renew talks next month, and as investors anticipated stimulus from global central banks. The Dow booked its fourth gain in a row on Monday but the broader market notched slight losses as investors looked ahead to European Central Bank and the Federal Reserve monetary policy moves, with both central banks expected to reveal easier-money initiatives in coming days amid mixed global economic data and an uncertain future for U.S.-China trade relations.
The Dow Jones Industrial Average rose 38.05 points, or 0.1%, to 26,835.51, recording its fourth straight gain. Meanwhile, the S&P 500 index lost less than a point, or 0.01%, to 2,978.43, and the Nasdaq Composite Index shed 15.64 points, or 0.2%, to 8,087.44. At session highs, the Dow rose 103.37 points, or 0.4%, the S&P was up 9.36 points, also 0.3% and the Nasdaq added 48.2 points, or 0.6%.
Last week, stocks gained some traction higher as Federal Reserve Chairman Jerome Powell said the job report is a sign of continued strength in the labor market. He also said the outlook for the economy remains favorable and the Federal Reserve is not forecasting or expecting a recession.
Closely watched employment data on Friday showed that the U.S. created a lackluster 130,000 new jobs in August, adding to evidence that hiring has slowed sharply in 2019. The increase in new jobs fell well short of the 170,000 forecast.
Also, a report on consumer borrowing showed a pickup in July, with borrowing rising at the fastest rate in almost two years. Total consumer credit increased $23.3 billion. That's an annual growth rate of 6.8%, up from a 4.1% rate in the prior month, representing the fastest pace since November 2017.
The European Central Bank is widely expected to deliver a further rate cut, pushing its deposit rate further into negative territory, when policy makers meet Thursday. The ECB may also move to restart a bond-buying program it ended in December as it responds to a slowing economy and stubbornly below-target inflation.
Expectations for more stimulus were high even as German exports unexpectedly rose in July, following a run of downbeat economic data out of Europe's largest economy.
Last week's renewed trade optimism appeared to spill over to Monday, following a report over the weekend that Chinese officials had offered to buy agricultural goods in exchange for concessions related to Huawei Technologies Co. or a delay of tariffs set to go into effect in October and December.
Later this week, investors will get a look at the August producer-price index on Wednesday, followed by the consumer-price index on Thursday and August retail sales data on Friday.
Bullion prices ended lower at Comex on Monday, 09 Sept 2019 at Comex, Gold futures settled lower on Monday, giving back earlier gains to extend their losses to a third session in a row, as a rise in U.S. Treasury yields weighed on the precious metal's haven appeal, ahead of key central bank meetings this week and next.
December gold fell by $4.40, or 0.3%, to settle at $1,511.10 an ounce after trading as high as $1,523.80. The most-active contract fell about 0.9% last week.
Silver for December delivery, meanwhile, tacked on 4.8 cents, or 0.3%, to $18.167 an ounce, following a 1.2% slump for the week for gold's sister metal.
Crude oil futures rose on Monday, 09 September 2019 marking their highest settlement in almost six weeks, after Saudi Arabia's new energy minister signaled a continued commitment to production curbs.
West Texas Intermediate crude for October delivery rose $1.33, or 2.4%, to settle at $57.85 a barrel on the New York Mercantile Exchange, while November Brent crude, the global benchmark, added $1.05, or 1.7%, to $62.59 a barrel on ICE Futures Europe.
The 2-yr yield increased five basis points to 1.57%, and the 10-yr yield increased seven basis points to 1.62%. The U.S. Dollar Index declined 0.1% to 98.32.
Looking ahead, investors will receive the NFIB Small Business Optimism Index for August and the JOLTS - Job Opening report for July on Tuesday.
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