(Bloomberg) — Stocks struggled to make headway, following a furious post-election rally that prompted calls for a breather amid signs of buyer fatigue.
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Stocks have fluctuated near all-time highs, with the S&P 500 remaining near technically overbought levels. This is after the rise that led to the benchmark index rising by 25% this year. Several measures highlight traders’ strong optimism, including the latest numbers from the American Association of Individual Investors, which showed a rise in bullish sentiment last week.
“The stock market is showing signs of becoming tired,” said Matt Maley of Miller Tabak + Co. “It may be due for some decline soon — which would actually be normal and healthy.”
Just hours before Jerome Powell’s speech on Thursday, traders waded through the economic data. U.S. producer prices rose in October, driven in part by gains in portfolio management and other categories that fuel the Fed’s preferred measure of inflation. Jobless claims fell to their lowest level since May.
“The question we have is whether Powell’s dovish policy will reset the tone for higher long-term interest rates. “On that question alone, we say no for now,” noted Andrew Brenner of NatAlliance Securities. “But he will continue to support Fed easing in the long run.” “In the near future, even that will have limited impact.”
The S&P 500 was little changed. Most major corporate stocks fell, while banks rose. Cisco Systems Inc stock fell. By 1.2% based on a conservative annual forecast. Walt Disney Co. stock jumped 10% on the earnings beat. The Nasdaq 100 index fell 0.2%. The Dow Jones Industrial Average fluctuated.
10-year Treasury yields fell three basis points to 4.42%. The Bloomberg Dollar Spot Index rose 0.1%.
The most prominent features of the company:
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Meta Platforms Inc. It has been fined €798 million ($841 million) by European Union regulators for linking its Facebook Marketplace service to its sprawling social network, the first-ever penalty imposed by the US tech giant for EU antitrust violations.
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ASML Holding NV, the Dutch manufacturer of advanced chip-making machines that are essential to global supply chains, reaffirmed its long-term revenue forecasts as it bets on an artificial intelligence-driven boom in semiconductor demand.
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Merck & Co. has licensed an experimental cancer antibody from a closely held Chinese company in a deal valued at $588 million upfront, plus up to $2.7 billion in milestone payments.
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General Mills, known for cereal brands like Cheerios, made its fifth acquisition in the pet food sector since 2018 by purchasing Whitebridge Pet Brands’ North American unit in a deal valued at $1.45 billion.
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Tapestry Inc. plans To buy back $6.1 billion worth of bonds it sold to finance the now-blocked purchase of Capri Holdings, after the deal was abandoned due to antitrust pressure.
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JD.com’s quarterly revenue rose 5.1%, a moderate expansion that suggests Chinese consumers are spending cautiously again as Beijing tries to revitalize the economy.
Main events this week:
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China Retail Sales, Industrial Production, Friday
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US Retail Sales, Imperial Manufacturing, Industrial Production, Friday
Some key movements in the markets:
Stocks
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The S&P 500 was little changed as of 9:57 a.m. New York time
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The Nasdaq 100 index fell 0.2%.
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There was little change in the Dow Jones Industrial Average
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The Stoxx Europe 600 index rose 1%.
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The MSCI World Index was little changed
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The Bloomberg Magnificent 7 Total Return Index fell 0.6%.
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The Russell 2000 index fell 0.2%.
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The KBW Bank Index rose 0.4%.
Currencies
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The Bloomberg Dollar Spot Index rose 0.1%.
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The euro fell 0.1 percent to $1.0551
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The British pound fell 0.1 percent to $1.2689
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The Japanese yen fell 0.2 percent to 155.78 yen to the dollar
Cryptocurrencies
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Bitcoin rose 0.7% to $89,263.37
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Ethereum fell 0.9% to $3,124.94
Bonds
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The yield on the 10-year Treasury note fell three basis points to 4.42%.
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The yield on German 10-year bonds fell by four basis points to 2.35%.
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The yield on British 10-year bonds fell two basis points to 4.50%.
Goods
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West Texas Intermediate crude rose 1.2% to $69.25 a barrel
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Gold in spot transactions fell 0.5 percent to $2,559.96 per ounce
This story was produced with assistance from Bloomberg Automation.
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