Stock Market Today: Stocks End Lower Following Jobs, PMI Data: Fed On Deck

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Solid earnings, big healthcare deals and key Fed bets see stocks get off to a strongly positive start on November's first trading day.

U.S. stock futures continued their recent rally on Tuesday as the dollar weakened against its global counterparts and oil prices rose as investors prepared for the start of the Federal Reserve's crucial two-month monetary policy meeting in Washington.

Shares get another boost from Johnson & Johnson ( JNJ )

As central banks around the world focus on the impact of the fight against inflation on the outlook for global growth and signal the possibility of slower interest rate hikes in the coming months, investors are betting on a dovish message from Fed Chairman Jerome Powell tomorrow as they bet on tomorrow. : a 75 percent increase in their prime lending rate, which currently stands at 3 to 3.5 percent.

The Reserve Bank of Australia, one of the first central banks to slow the pace of its tightening cycle earlier this year, cut interest rates 25 basis points lower than expected overnight, pushing interest rates to a nine-year high of 2.85%.

The move helped further strengthen the US dollar, which fell 0.65% against a basket of global peers to 110.805, while the 10-year bond yield fell to 3.95%.

The Fed's "pivotal" expectations of a rate hike through 2023, as well as strong industrial and other non-tech gains for many US firms in the September quarter and stronger-than-expected underlying economic data, provided strong impetus for action. in the last two months of this year.

Earnings, however, may struggle to sustain this optimism, as the S&P 500's collective gain, after accounting for the energy sector, is expected to decline 0.4%, with very modest gains expected in the coming months. the month ending in December.

"After a very broad rally that has bypassed almost all of the technology leaders that have held the market for so long, the market is approaching overbought and ready to pull back," said Quincy Crosby, head of global strategy at LPL. Financial in Charlottesville. , Virginia.

While inflationary pressures are still high but still easing, three-month Eurodollar futures remain above 5%, underscoring that despite the market's relentless desire for signs of a "pivot," the market does not expect an immediate "turn" from the Fed. "Included in almost all of the Fed's less hawkish comments," he added.

The market now faces a number of key dates, including Wednesday's Fed rate decision, Thursday's Bank of England monetary policy meeting, Friday's jobs report and the US election. the last rally.

At the start of the trading day on Wall Street, futures contracts related to the S&P 500 traded up 39 points in the early open, while contracts related to the Dow Jones Industrial Average gained 210 points. The technology-focused Nasdaq is awarded a 150-point jump.

In overseas markets, the Stoxx 600 rose 1.31% across the region in Frankfurt, while the FTSE 100 rose 1.5% in London, helped in part by higher oil prices and BP plc's $8.2bn in the third quarter of profit.

In Asia, the regional MSCI Japan ex-Japan index rose 2.58% last night on unconfirmed reports of an expected easing of lockdowns in China, while Japan's Nikkei 225 rose 2.58% for a six-week gain of 0.33 %: high. increased by 0.33% to 275678.92 points.

Reports of the lifting of Covid restrictions as well as a weakening US dollar weighed on global oil prices, with December WTI crude futures up $2 to $88.52 a barrel.

The move came hours after President Joe Biden accused America's biggest oil company of having "war deadweight" that brought in record profits but forced Americans to pay more for gas and heating.

"My team will work with Congress to review these options that are available to us and others," Biden told reporters at the White House on Monday night. "It's time for these companies to stop profiting from war, take up their responsibilities in this country, and give the American people a break and continue to do very well."

Exxon Mobil ( XOM ) - Get Report Shares of Exxon Mobil Corporation rose 1.65% in premarket trading to open at $112.65 each, a move that extended the stock's year-to-date gain to 83. 8% will expand. Chevron ( CVX ) – Get Chevron Corporation reports up 52% ​​year-to-date at $183.85 each, up 1.63%.

Uber Technologies ( UBER ) - Get reports from Uber Technologies Inc. The stock was another notable mover, gaining 13% after a stronger-than-expected third-quarter earnings release and a stronger near-term earnings forecast. An increase in travel offset a modest slowdown in food shipments.

Pfizer ( PFE ) – Get reports from Pfizer Inc. Shares rose 5% after the drug company posted better-than-expected second-quarter revenue, while vaccine sales forecasts rose amid continued demand for a Covid vaccine and antiviral treatment.

Fed Minutes, UK Unemployment, Flash PMI, Royal Mail, M&S and Burberry Results - 18 May 2020