Stocks kicked off the start of a big next couple of days of economic news with a merger Monday.
Market participants entered the week on a cautious note, as the next two days could give them clues as to when the Federal Reserve might first start cutting interest rates in 2024. A data-dependent central bank will certainly take tomorrow's CPI Report – a reading on consumer inflation – at least partially into account as it formulates policy.
The Federal Reserve Bank of Cleveland's Nowcast predicts headline inflation in November to increase by 3.1%, down from the 3.2% rate seen in the October CPI report. On a monthly basis, November inflation is forecast to rise 0.05%, or up slightly from an unchanged reading the prior month.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
November's core CPI, which excludes volatile food and energy prices, is expected to increase 4.1% annually and 0.3% on a monthly basis. October's core CPI rose 4.0% year-over-year and 0.2% on a monthly basis.
Speaking of monetary policy, the next Fed meeting wraps up Wednesday. The Fed's rate-setting committee, the Federal Open Market Committee (FOMC), is almost certainly going to keep the short-term federal funds rate unchanged at a 22-year high.
What market participants are really looking for are clues as to when the FOMC will pivot to rate cuts. Interest rate traders currently assign a 40% probability to a quarter-point rate cut in March 2024, according to CME Group's FedWatch Tool.
On Sunday, Goldman Sachs said it expects the Fed to begin cutting rates in the third quarter of 2024.
Macy's pops on buyout bid
Equities also got a kick out of some good old fashioned mergers and acquisitions news.
Occidental Petroleum (OXY), which is one the largest holdings in Warren Buffett's Berkshire Hathaway stock portfolio, continued the theme of consolidation in the oil patch on Monday.
OXY bought closely held U.S. shale oil producer CrownRock in a cash-and-stock deal valued at $12 billion including debt. The move comes amid a spate of energy sector deals, including Exxon Mobil's (XOM) $60 billion bid for Pioneer Natural Resources (PXD) and Hess's acquisition by Chevron (CVX), a Dow Jones stock, for $53 billion.
In more consumer-facing M&A news, shares in Macy's (M) closed up 19% after The Wall Street Journal reported a group of investors offered $5.8 billion to buy out the iconic department store operator. The group intends to take Macy's private.
As for the major indexes, the Dow Jones Industrial Average added 0.4% to 36,404, the S&P 500 rose 0.4% to 4,622, and the Nasdaq Composite gained 0.2% to 14,432.
Related content
- Comcast To Hike Prices By 3% Next Year
- The Earnings Recession Is Over
- The Wash Sale Rule: Six Things You Need to Know
-
Dow Soars 600 Points as Trump Retreats: Stock Market TodayAnother up and down day ends on high notes for investors, traders, speculators and Greenland.
-
12 Tax Strategies Every Self-Employed Worker Needs in 2026Your Business Navigating the seas of self-employment can be rough. We've got answers to common questions so you can have smoother sailing.
-
7 Hybrid Adviser Services, ReviewedThese hybrid adviser services aim for a sweet spot that combines digital investing with a human touch.
-
Dow Soars 588 Points as Trump Retreats: Stock Market Today
Another up and down day ends on high notes for investors, traders, speculators and Greenland.
-
If You'd Put $1,000 Into UPS Stock 20 Years Ago, Here's What You'd Have TodayUnited Parcel Service stock has been a massive long-term laggard.
-
Dow Dives 870 Points on Overseas Affairs: Stock Market TodayFiscal policy in the Far East and foreign policy in the near west send markets all over the world into a selling frenzy.
-
Small Caps Can Only Lead Stocks So High: Stock Market TodayThe main U.S. equity indexes were down for the week, but small-cap stocks look as healthy as they ever have.
-
How the Stock Market Performed in the First Year of Trump's Second TermSix months after President Donald Trump's inauguration, take a look at how the stock market has performed.
-
Dow Adds 292 Points as Goldman, Nvidia Soar: Stock Market TodayTaiwan Semiconductor's strong earnings sparked a rally in tech stocks on Thursday, while Goldman Sachs' earnings boosted financials.
-
Stocks See First Back-to-Back Losses of 2026: Stock Market TodayRising geopolitical worries and a continued sell off in financial stocks kept pressure on the main indexes on Wednesday.
-
Visa Stamps the Dow's 398-Point Slide: Stock Market TodayIt's as clear as ever that President Donald Trump and his administration can't (or won't) keep their hands off financial markets.
