Opening Comment — Monday, March 18, 2024
DJIA: 38,714.77, down 190.89
S&P 500: 5,117.09, down 33.39
NASDAQ: 15,973.17, down 155.36
Stocks higher ahead of FOMC meeting this week
Stock futures are mostly higher on Monday, ahead of March’s Federal Open Market Committee (FOMC) meeting, scheduled to begin tomorrow. The Dow is little changed, while the S&P 500 is up 0.5%. The Nasdaq 100 is increasing 0.9% relative to fair value on the GLOBEX.
U.S. equities were lower on Friday, as investors evaluated February’s industrial production which increased, compared to an expected flatline. The preliminary March reading for the University of Michigan’s Consumer Sentiment Index unexpectedly fell. The Dow was down 0.5%, while the tech-heavy Nasdaq Composite fell 1.0%. The S&P 500 decreased 0.7% with seven of 11 sectors finishing in negative territory. The Information Technology sector declined the most, falling 1.3%.
On the data front today, the National Association of Home Builders (NAHB) Housing Market Index is forecasted to post a level of 48 in March, unchanged from February’s reading.
Across the pond, European stocks are higher in mid-day trading with the final reading for the eurozone’s February Consumer Price Index (CPI) coming in line with expectations.
Overnight in Asia, stocks were higher with China’s industrial production for February increasing more than consensus estimates. Investors looked forward to central bank meetings in Australia and Japan.
In FOREX trading, the dollar is little changed following expectations that the Bank of Japan (BoJ) might end their negative interest rate policy.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 1.0% higher at $81.87/barrel, following expectations of tightened global oil supply.
In the metals complex, gold is little changed at $2161.00/ounce.