Traders work on the floor of the New York Stock Exchange during afternoon trading on February 05, 2024 in New York City.
Michael M. Santiago | Getty Images
S&P 500 futures are near flat Monday night as the market comes off its first losing week in more than a month.
Futures tied to the S&P 500 slid 0.1%, while Nasdaq 100 futures were near flat. Futures tied to the Dow Jones Industrial Average lost 54 points, or 0.1%.
The moves follow a losing week on Wall Street after economic data raised concerns that the Federal Reserve may not begin cutting interest rates as soon, or by as much, as market participants expected this year.
All three of the major indexes snapped five-week winning streaks. The technology-heavy Nasdaq Composite led the way down with a drop of more than 1.3%, while the benchmark S&P 500 slipped about 0.4%. The blue-chip Dow saw the narrowest loss, shedding just around 0.1%.
Wholesale prices rose more than anticipated by economists polled by Dow Jones between December and January, according to producer price index data released Friday. That bolstered concerns over sticky inflation that were raised earlier in the week after the consumer price index came in at 3.1% on an annualized basis, higher than economists forecasted and well above the 2% goal of the Fed.
“The Fed will be concerned by the January CPI and PPI reports,” said Bill Adams, chief economist at Comerica Bank. “Momentum has built up in inflation over the last few years, and persists in many corners of the economy. … January’s inflation data will reinforce the Fed’s inclination to lower interest rates only gradually in 2024.”
Tuesday kicks off the shortened trading week after U.S. markets were closed Monday in observance of the birthday of George Washington. Investors will watch for the leading index and economic data on nonmanufacturing in the morning.
On the corporate earnings front, traders will monitor results from Home Depot and Walmart due before the bell. Attention will turn focus to Palo Alto Networks‘ report expected after the bell.
Capital One to acquire Discover in $35.3 billion all-stock deal
Capital One Financial is set to acquire Discover Financial Services in a $35.3 billion all-stock deal, the companies announced late Monday.
The companies said they expect the deal to close in late 2024 or early 2025, after which Capital One shareholders would hold 60% and Discover shareholders would own 40% of the combined company.
The merger of the two companies, which are among the largest credit card issuers in the U.S., would expand Capital One’s credit card offerings and its deposit base. The company bought digital concierge service Velocity Black, a premium credit card and luxury market platform, in June of last year.
— Hakyung Kim, Christine Wang
Stocks come off losing week
Traders have to look beyond a negative week that snapped a winning streak.
The technology-heavy Nasdaq Composite dropped more than 1.3% last week, while the broad S&P 500 lost about 0.4%. The 30-stock Dow shed just 0.1%, pointing to mitigated losses among blue-chip names.
With those moves, the three indexes all snapped five-week winning streaks.
Tuesday marks the beginning of the holiday-shortened trading week, with U.S. markets dark on Monday in observance of Gorge Washington’s birthday.
— Alex Harring
S&P 500 and Dow futures are near flat
Futures connected to the S&P 500 and Dow were both little changed shortly after 6 p.m. ET Monday night. Nasdaq 100 futures inched higher by 0.2%.
— Alex Harring
