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Wall Street edges higher as markets anticipate Fed speakers amidst rate-cut optimism.


Wall Street Awaits Clarity on Fed’s Rate Cut ‍Decision

November 6, 2023 – 3:14 PM UTC

(Reuters) – In an exciting start to the week,⁤ Wall Street’s​ main indexes are showing a slight upward trend as investors eagerly anticipate⁣ commentary from‍ policymakers. This much-awaited insight is expected to shed light on whether the Federal Reserve will cut rates next year.

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Shares ⁤of Tesla (TSLA.O) are ⁢soaring, up 1.1% after a source revealed that the electric automaker plans to build​ a 25,000-euro ($26,838) car near Berlin.

Excitingly, seven ​of the 11⁢ major S&P⁣ 500 sectors are experiencing gains, with information technology (.SPLRCT) and consumer⁣ discretionary (.SPLRCD) leading the charge.

Last week,⁢ U.S. equities⁢ had their best performance in about a year, boosted⁤ by falling Treasury yields. This was fueled by a weaker-than-expected monthly payrolls report, which ⁤raised hopes of a rate cut by⁢ the Fed next ⁣year.

Traders are currently betting that the Fed will ​maintain​ interest rates in December, with a 90% certainty. Additionally,‌ there is an 80% chance that the first policy easing will occur as early as June, according to‌ the CME​ Group’s FedWatch tool.

This week, market participants will closely monitor the views‍ of various Fed policymakers, including Chair Jerome Powell, who are scheduled‌ to speak in the coming days. ⁤Their‌ insights will put these expectations ⁢to the test.

Other ⁤notable speakers​ include:

  • Federal Reserve Board Governor Lisa Cook
  • New York Fed President John Williams
  • Dallas Fed President Lorie Logan

The ⁣yield on the benchmark ten-year Treasury note, which reached five-week lows on Friday, has slightly increased to 4.63% on⁢ Monday.

“The one thing that needs to happen ⁢for the rally to continue⁣ to gain momentum is ⁤for the⁤ 10-year yields to stabilize,” said Jamie ‍Cox, managing partner at Harris Financial Group.

“Rates are going to stabilize​ lower because it’s pretty ⁣clear​ that the ⁢Fed has no ⁣intentions of raising rates in ‍December and then we’re getting closer to the ​rate ⁣cut dot plot in ​2024.”

This ​week’s economic-data calendar is relatively light, with‍ weekly jobless claims​ numbers due on Thursday and the ​University of Michigan’s consumer​ sentiment report on Friday.

Notable companies reporting⁢ earnings this week include ⁣Walt Disney (DIS.N), Instacart (CART.O), ⁢and Biogen (BIIB.O).

According to LSEG data, ‌out of the 403 companies in the S&P 500 that have reported profits ‍in ⁣the third quarter, an impressive‌ 81.6%⁣ have surpassed analyst estimates.

As of 9:47 a.m. ET, the Dow Jones Industrial Average (.DJI) is up 21.60‍ points, or 0.06%, at 34,082.92, the S&P 500 (.SPX) is up 5.99 points, or 0.14%, at 4,364.33, ⁣and the Nasdaq Composite (.IXIC) is up 52.21 points, or 0.39%, at 13,530.50.

However, Dish Network(DISH.O) has experienced ⁣a 19.9% drop after missing third-quarter revenue estimates and announcing the departure of ‍CEO Erik ‍Carlson.

Bumble(BMBL.O) has​ also slipped 7.6% as founder Whitney ⁢Wolfe Herd steps down ⁢as ‌its⁢ chief executive.

On the⁣ NYSE, declining issues outnumbered advancers with a ratio of⁣ 2.01-to-1, while on the Nasdaq, the ratio was 1.24-to-1.

The S&P index ​has recorded eight new 52-week highs⁣ and no new lows, while the Nasdaq has ​seen 17 new highs​ and 32 new lows.

Reporting by Amruta Khandekar and Shristi Achar ​A; Editing by Maju Samuel

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What ⁤information are investors eagerly​ awaiting from‌ policymakers regarding the Federal Reserve’s rate cut ⁤decision?

Wall Street Awaits‍ Clarity on Fed’s Rate Cut‌ Decision

November 6, 2023 –‌ 3:14 PM UTC

In ⁤an exciting start to the week, Wall Street’s ‌main indexes are showing a slight ‍upward trend as investors eagerly anticipate commentary ⁣from policymakers. This much-awaited insight is expected to shed light on whether the Federal Reserve will⁢ cut ⁢rates next ‌year.

Shares of Tesla (TSLA.O) are‌ soaring, ‍up 1.1% after a source revealed that the electric⁣ automaker plans to build​ a⁣ 25,000-euro ($26,838) car near Berlin.

Excitingly, seven of ‍the 11 ​major S&P 500 sectors ‍are experiencing gains, with information technology (.SPLRCT) and consumer discretionary (.SPLRCD)​ leading the charge.

Last week, U.S. equities had their best performance in about a year, boosted by falling Treasury yields. This was fueled by a weaker-than-expected⁤ monthly payrolls report,‌ which raised hopes of a rate cut by the Fed next year.

Traders are ‍currently​ betting that the Fed will maintain​ interest rates in December, with a ⁤90% certainty.⁢ Additionally, there is ⁤an 80% chance that‍ the⁣ first policy easing will occur ‌as early as June, ‌according⁣ to‌ the CME​ Group’s FedWatch tool.

This week, market⁣ participants will closely monitor the views of various Fed policymakers, including Chair⁣ Jerome Powell, who are ‍scheduled to speak ​in the coming days. Their insights will put these expectations to the test.

Other notable speakers include:

-Federal Reserve Board Governor Lisa Cook

-New York Fed President John Williams

-Dallas Fed President Lorie Logan

The⁣ yield on the benchmark ten-year Treasury note, which reached five-week lows on Friday, has slightly increased‌ to 4.63% on ​Monday.

“The one thing that needs to ‍happen⁣ for the rally to continue to gain momentum​ is for the 10-year yields to stabilize,” said Jamie Cox, managing partner at Harris Financial Group.

“Rates are going to stabilize lower because it’s pretty clear‍ that the Fed has⁣ no intentions of ⁢raising rates in December​ and‍ then we’re getting closer to the rate cut dot plot in 2024.”

This week’s economic-data calendar is⁢ relatively light, with weekly jobless ‍claims numbers due ‍on Thursday and the University ⁣of Michigan’s consumer sentiment report on Friday.

Notable companies reporting earnings this week include⁣ Walt Disney (DIS.N), Instacart ​(CART.O), and Biogen (BIIB.O



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