4:10pm: Macy's stock soars
The Dow closed Monday up 157 points, 0.4%, at 36,405, the Nasdaq Composite added 29 points 0.2%, to 14,432 and the S&P 500 improved 18 points, 0.4%, to 4,622. The small-cap Russell 2000 index gained 2 points, 0.1%, to 1,883.
Macy's shares popped nearly 20% to $20.78 after the company received a $5.8 billion buyout offer that would value the retailer at $21 per share.
Meanwhile, many investors are looking ahead to CPI and PPI data this week, in addition to the all-important FOMC meeting. The Fed is largely expected to keep interest rates steady in the 5.25%-5.5% range;
“No one expects a hike, but hotter-than-expected inflation readings could throw cold water on the idea that rate cuts are coming sooner rather than later,” said Chris Larkin, head of trading and investing at E-Trade.
12:00pm: Blue-chips climb but tech stocks falter
US stocks enjoyed mixed fortunes with blue-chips higher but tech issues weaker, while the S&P 500 briefly hit a 12-month high.
At midday, the Dow Jones Industrial Average was up 79.51 points, 0.2%, at 36,327.38, the S&P 500 was little changed at 4,605.84 while the Nasdaq Composite fell 46.70 points, 0.3%, at 14,357.27.
Michael Hewson at CMC Markets said US markets have started the week in a "subdued fashion after the gains from last Friday, which saw the S&P500 close at its highest levels this year, and yields rebound strongly from their lows of the week."
He noted electric car maker Lucid Group is down today on reports that it will be pushed out of the Nasdaq 100 when the index undergoes its annual reconstitution on Monday of next week.
Amongst the other companies leaving the index will be eBay and Zoom Video Communications to be replaced by the likes of DoorDash, Splunk and CDW Corporation, Hewson said.
9:40am: Interest rate decision and inflation lie ahead
US stocks made a mixed start ahead of key economic data and the final rate call of the year by the Federal Reserve.
Shortly after the opening bell, the Dow Jones industrial Average was up 81.10 points, 0.2%, at 36,328.97, the S&P 500 was little changed at 4,603.28 and the Nasdaq Composite was down 39.48 points, 0.3%, at 14,364.50.
The US central bank is widely expected to leave interest rates unchanged on Wednesday as the market continues to speculate when rates will be lowered.
Bank of America explained that since the November meeting, the bulk of incoming data has pointed to moderation in economic activity, disinflation, and a cooling labor market.
“We think that this has increased the Fed's confidence that its current policy stance is appropriate and sufficiently restrictive.” it said.
“If so, upcoming Fed decisions will likely be more about how long to maintain its current policy stance than whether additional policy rate firming is needed,” BofA added.
With regard to tomorrow’s inflation figures, the bank expects headline and core CPI to rise by 0.0% m/m and 0.3% m/m, respectively, in November.
Energy prices should hold down headline inflation, while lodging away from home and used cars should lead to a firmer core, it thinks.
In company news, Occidental Petroleum, up 1.1%, has agreed to acquire Texas shale driller CrownRock, in a deal valued at about $12 billion, including debt.
The Houston-based company backed by Warren Buffett beat competition from rival bidders that had also tried to snap up CrownRock’s shale assets.
Elsewhere, Macy’s jumped 17% after reports that the company received a buyout offer.
People familiar with the matter told CNBC that two investment firms have offered to buy Macy’s for $5.8 billion, or $21 per share.
7:00am: Futures subdued but Macy's jumps on bid reports
US futures are pointing to a subdued start to the week as investors look ahead to consumer prices inflation data on Tuesday and the interest rate decision by the Federal Reserve on Wednesday.
In pre-market trading, futures for the Dow Jones Industrial Average were flat, while those for the S&P 500 were down 0.1% and contracts for the Nasdaq 100 futures declined 0.2%.
The US central bank is expected to maintain the fed funds rate steady in the 5.25%-5.5% range but it will be comments regarding the future path of monetary policy that will grab the headlines.
Richard Hunter at interactive investor said: “The Fed’s interest rate decision and accompanying comments will be of particular interest to investors, especially given the recent rally in stocks on optimism of an end to the hiking cycle and the gradual move towards monetary easing.”
Stocks to watch include Macy’s, up 21% in pre-market trading, after reports that an investor group consisting of Arkhouse Management and Brigade Capital has made a $5.8 billion offer to take department store chain private.