US: Wall Street mixed ahead of key inflation data
US STOCKS finished mixed on Monday, as traders shook off a warning over the country’s credit rating and prepared for the release of key inflation data.
On Friday, Moody’s downgraded its outlook on US debt to “negative” from “stable,” ahead of a Nov 17 deadline for a budget deal in Congress to avert a government shutdown.
“The market is taking a wait and see approach,” to the prospect of a government shutdown, Jack Ablin from Cresset Capital told AFP.
The Dow Jones Industrial Average was the only major index on Wall Street to increase, ticking up 0.2 per cent to 34,337.87.
The broad-based S&P 500 Index slipped 0.1 per cent to 4,411.55, while the tech-rich Nasdaq Composite Index fell 0.2 per cent to 13,767.74.
The closely-watched consumer price index (CPI) gauge of inflation will be published on Tuesday, shedding light on the Federal Reserve’s progress in tackling high inflation.
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Although the CPI has dropped sharply since peaking at more than nine per cent last year, it remains elevated, keeping up the pressure on the Fed to act.
“I think everyone is waiting for the inflation report,” said Ablin from Cresset Capital. “I believe it is more important than even the jobs report.”
Among individual stocks, Boeing finished the day up 4.0 per cent after a press report that China will lift a freeze on the sale of some jets ahead of a meeting between the US and Chinese presidents later this week.
And Tyson Foods saw its share price decline 2.8 per cent after reporting lower-than-expected revenues in the third quarter of the year. AFP
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