4:10pm: Tesla shares rise
The Dow closed Monday up 55 points, 0.2%, the Nasdaq Composite lost 30 points, 0.2%, to 13,768 and the S&P 500 shed 4 points, less than 0.1%, to 4,412. The small-cap Russell 2000 index added 2 points, 0.1%, to 1,707.
The mixed session came after Moody’s Investors Service cut its US credit rating outlook to negative from stable on Friday.
“We’re seeing investor reaction to the Moody’s downgrade, but we’re also seeing skittishness around some big developments pending this week. We think all eyes are focused on this week’s inflation data and the resulting Fed policy,” said Greg Bassuk, CEO of AXS Investments.
Tesla shares rose more than 4% after European petrol station group EG said it will acquire ultra-fast chargers from Elon Musk’s car company.
12:00pm: Blue chips reverse early losses
Blue-chips reversed early losses lifted by a rally in the oil price but tech stocks remain in negative territory.
At midday, the Dow Jones Industrial Average was up 85.93, 0.3%, at 34,369.03, the S&P 500 was little changed at 4,413.88, and the Nasdaq Composite was down 28.10 points, 0.2%, at 13,770.01.
Boeing remains in favour, up 5..4% after it contract award from Emirates.
Danni Hewson at AJ Bell said: "“It’s also been a good day for Boeing after it secured a massive deal with Emirates, amid speculation that China could end its freeze on buying the US aircraft."
“Whilst there’s clearly quite a distance still to travel the deal would signal a thawing of relations between the two countries and would be a major boon for Boeing, which is still trying to regain cruising altitude after a series of major issues."
9:40am: Wall Street on the back foot after Moody's downgrade
Stocks started the week on the back foot ahead of US inflation figures tomorrow and after Moody’s Investors Service lowered its US credit rating outlook to negative from stable, late Friday.
Shortly after the opening bell, the Dow Jones Industrial Average was down 72.79 points, 0.2%, at 34,210.31, the S&P 500 was down 18.36 points, 0.4%, at 4,396.88 and the Nasdaq Composite was down 73.34 points, 0.5%, at 13,724.76.
Deutsche Bank's Jim Reid noted: "S&P and Fitch ratings are already a notch lower at AA+, so the Moody's move may be seen as a step towards catching up to the other rating agencies but if it did lose its last AAA rating that would be highly symbolic."
Wall Street will also keep a close eye on Washington negotiations to avert a US government shutdown at the end of this week.
Stocks on the move include Monday.com, up 11%, after the project management company reported a strong quarter and issued an upbeat sales forecast.
7:00am: Stocks seen lower after Moody's cut, inflation data
US stocks are expected to edge lower on Monday ahead of US inflation figures on Tuesday, and after Moody’s lowered its credit rating outlook for the US on Friday.
In pre-market trading, futures for the Dow Jones Industrial Average were flat, while those for the S&P 500 were 0.2% lower, and contracts for the Nasdaq 100 futures were down 0.2%.
Moody’s on Friday highlighted “very large” fiscal deficits and partisan gridlock in Washington as contributing factors for the downgrade.
It reaffirmed the credit rating at AAA but lowered the outlook to negative from stable.
“In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues,” the agency said.
“Moody’s expects that the US’ fiscal deficits will remain very large, significantly weakening debt affordability.”
Joshua Mahony at Scope Markets said the decision signalled a growing feeling that the country is becoming increasingly unstable under the weight of increased debt and ballooning repayment costs.
Stocks to watch include Boeing with shares up almost 3.4%, lifted by a $52 billion deal with Emirates, as well as reports that China is weighing an end to a freeze on purchases of Boeing aircraft.
US President Joe Biden and Chinese premier Xi Jinping are due to meet on Wednesday.