Stocks open higher on Wall Street ahead of retailers earnings
Shares rose modestly higher on Wall Street early Monday, making the week an encouraging start after its first weekly loss in six. The S&P 500 rose 0.2% early, the Dow Jones Industrial Average and the Nasdaq added 0.3%. Crude oil prices fell and the 10-year Treasury yield rose to 1.60%. European markets were higher and Asian markets mostly closed higher. Several major retailers will report their latest quarterly results this week, including Home Depot and Walmart on Tuesday and Target on Wednesday.
This is an urgent news update. A previous AP story follows below.
Stocks rose on Monday in Europe and Asia ahead of virtual talks between President Joe Biden and Chinese President Xi Jinping.
The meeting, scheduled for late Monday, could add some clarity about the state of fraught trade relations between the world’s two largest economies.
This comes after the United States and China pledged in United Nations climate talks to intensify cooperation in curbing climate-damaging emissions. But it comes after months of fruitless exchanges between the two chief advisers.
“So far, relations between Washington and Beijing are at an all-time low, and traders hope this meeting will give them reason to feel more comfortable when it comes to geopolitics,” said Naim Aslam of Avatrade. Suspension.
Germany’s DAX rose 0.1% to 16104.86 while Paris’s CAC 40 rose 0.3% to 7,112.49. In London, the FTSE 100 remained almost unchanged at 7,348.52.
S&P 500 futures and the Dow industrial index were up 0.1%.
Japan reported that its economy contracted in the July-September quarter amid tightening epidemic restrictions that affected consumer spending.
On an annual basis, the economy contracted an average of 0.3%. It shrank 0.8% from the previous quarter.
Prime Minister Fumio Kishida is due to introduce a massive stimulus package this week, with spending of up to 40 trillion yen ($350 billion).
The recent sharp drop in novel coronavirus cases has enabled the country to ease restrictions on business and other activities, and this along with government spending is expected to lead to a strong recovery in the last quarter of the year.
Tokyo’s Nikkei 225 rose 0.6% to 29,776.80, while South Korea’s Kospi rose 1% to 2,999.52. In Australia, the S&P/ASX 200 rose 0.3% to 7,470.10.
The latest Chinese data update was a mixed bag, with retail sales and factory production up but home prices weaker and investment in fixed assets.
Hong Kong’s Hang Seng rose 0.3% to 25390.91, while Shanghai Composite slipped 0.2% to 3533.30.
In Beijing, a new exchange set up to serve entrepreneurs opened Monday with 81 companies amid a crackdown on tech giants that wiped out more than $1 trillion of their market value overseas.
She joins others in Shanghai and the southern city of Shenzhen. Mainland exchanges are mostly off-limits to foreign investors and were created primarily to raise funds for state-owned companies. President Xi Jinping said in September that the Beijing Stock Exchange would “create a service-oriented and innovation hub for small and medium-sized businesses,” the ruling party’s term for private companies.
On Friday, stocks closed higher on Wall Street but the market still ended the week lower.
The S&P 500 rose 0.7% but ended the week 0.3% lower in its first weekly loss in six weeks.
The Dow Jones Industrial Average rose 0.5% and the Nasdaq Composite closed 1% higher. The Dow lost 0.6% for the week and the Nasdaq lost 0.7%.
The streak of recent gains for stocks, which produced a string of record highs for major indices, appears to have fizzled out as investors’ focus shifted from corporate earnings to rising inflation.
A wide range of companies have shown that they have weathered the summer wave of COVID-19 cases and ongoing supply chain problems.
Wall Street will get an update on consumer spending on Tuesday when the Commerce Department releases its October retail sales report. Several major companies have yet to announce earnings, including Home Depot and Walmart, which will report results on Tuesday. Target will report its results on Wednesday and Macy’s will report its earnings on Thursday.
On Monday, the price of benchmark US crude oil fell 61 cents to $80.18 a barrel in electronic trading on the New York Mercantile Exchange. It lost 80 cents to $80.79 a barrel on Friday.
Brent crude oil, the basis for international pricing, lost 72 cents to $81.45 a barrel.
The dollar fell to 113.89 Japanese yen from 113.97 yen. The euro rose to $1.1454 from $1.1447.
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