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Wall Street Ticks Higher Monday 05/20 09:33
Most U.S. stock indexes are ticking higher on Monday and adding to their
latest winning week.
NEW YORK (AP) -- Most U.S. stock indexes are ticking higher on Monday and
adding to their latest winning week.
The S&P 500 was up 0.4% in morning trading and on track to surpass its
record set last week. The Nasdaq composite was 0.7% higher and likewise on pace
for a record, as of 10 a.m. Eastern time. The Dow Jones Industrial Average was
trailing the market and down 4 points, or less than 0.1%, after closing above
the 40,000 level for the first time on Friday.
Norwegian Cruise Line was helping to lead the market and steamed 6.1% higher
after giving some financial forecasts for the year that topped analysts'
expectations. It said demand is growing for cruises, and some of its
competitors gained in its wake. Carnival rose 4.6%, and Royal Caribbean Group
gained 4.5%.
All three of the big U.S. stock indexes set records last week in large part
because of revived hopes that the Federal Reserve will be able to cut interest
rates this year as inflation hopefully cools. More reports showing big U.S.
companies are earning fatter profits than expected also boosted stock prices.
This upcoming week has few top-tier economic reports, like last week's
headliner that showed inflation may finally be heading back in the right
direction following a discouraging start to the year. But some potentially
market-moving reports on corporate profits are on the calendar.
Atop them all is Nvidia, whose rocket ride amid a frenzy around
artificial-intelligence technology has been a major reason for the S&P 500's
gains over the last year. It will report its latest quarterly results on
Wednesday, and expectations are high. Analysts are forecasting its revenue more
than tripled to nearly $24.59 billion from a year earlier.
Its stock was up 2.6% to bring its gain for the year so far above 91%.
Several retailers are also on the schedule, including Lowe's on Tuesday,
Target on Wednesday and Ross Stores on Thursday. They could offer more details
on how well spending by U.S. households is holding up. Pressure has been rising
on them amid still-high inflation, even if it's not as bad as before, and
cracks seem to be most visible among the lowest-income customers.
Target was down 1.3% after it said Monday it would cut prices on thousands
of everyday essentials, like milk and diapers, in an acknowledgment of how
customers are looking for relief from higher prices.
In the oil market, crude prices were mixed after erasing gains they made
earlier in the morning, following the death of Iran's president in a helicopter
crash. A barrel of benchmark U.S. crude was up 0.2% at $79.76. Brent crude, the
international standard, slipped 0.2% to $83.83 per barrel.
In the bond market, yields were mostly steady. The yield on the 10-year
Treasury rose to 4.43% from 4.42% late Friday. The two-year yield, which more
closely tracks expectations for Fed action, was holding steady at 4.83%.
The Fed on Wednesday will release the minutes from its latest meeting, where
it again held its main interest rate at the highest level in more than two
decades. The hope is that the Fed can manage the delicate balancing act of
grinding down the economy through high interest rates by just enough to get
inflation under control but not so much that it causes a painful recession.
Traders are putting an 89% probability on the Fed cutting its main interest
rate at least once this year, according to data from CME Group.
In stock markets abroad, indexes were modestly higher across much of Asia
and Europe.
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