Stocks opened lower Monday, with investors cautious ahead of tomorrow's release of the October Consumer Price Index (CPI) report. However, the blue chip Dow Jones Industrial Average managed to outperform and close higher on the day thanks to a solid showing from aerospace giant Boeing (BA).
After nabbing their second weekly win last Friday, the major benchmarks made modest moves Monday. Both the Nasdaq Composite (-0.2% to 13,767) and the S&P 500 (-0.1% to 4,411) ended marginally lower.
The Dow, on the other hand, rose 0.2% to 34,337, amid strength in blue chip stock Boeing. Shares of the aerospace giant climbed 4.0% after a Bloomberg report indicated China could lift its freeze on buying Boeing aircraft. Additionally, the company landed two big deals at this week's Dubai Air Show: a $52 billion order from long-haul carrier Emirates and the purchase of 30 787-9 Dreamliners from low-cost air carrier FlyDubai.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
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.
Nvidia's on a nine-day win streak
Nvidia (NVDA) was another notable mover, with the mega-cap stock adding 0.6%. The chipmaker is on a nine-day win streak, with today's upside coming after the company unveiled its H200 graphics processing unit (GPU). According to Nvidia, the new GPU will offer "faster, larger memory to fuel the acceleration of generative AI [artificial intelligence] and large language models."
October CPI ahead
Still, it's Tuesday's inflation data that remains top of mind for investors. The next CPI report will be released ahead of tomorrow's open and falling gas prices will likely put downward pressure on headline inflation, says BofA Securities economist Stephen Juneau. "[W]e forecast headline CPI rose by 0.2% month-over-month, which would be a meaningful deceleration from the 0.4% print in September." The economist expects core CPI will remain unchanged at 0.3%.
Market participants are also keeping an eye on any headlines coming from Capitol Hill. The government is at risk of shutting down at midnight this Friday, November, 17, if lawmakers don't pass a spending measure.
Over the weekend, Moody's Investors Services lowered its U.S. credit rating outlook to Negative from Stable, citing "political polarization within U.S. Congress," which "raises the risk that successive governments will not be able to reach consensus on a fiscal plan to slow the decline in debt affordability."
If this sounds familiar, it should. It's one of the reasons Fitch Ratings gave when it downgraded the U.S. credit rating in August.
The good news for investors: While this could create some short-term volatility in stocks, government shutdowns historically have not had much impact on long-term returns.
Related content
- Get Costco's Early Black Friday Deals
- When Is the Next Fed Meeting?
- What Are the Capital Gains Tax Rates for 2023 vs. 2024?
-
A 'Fast, Fair and Friendly' Fail: Farmers Irks Customers With Its Handling of a Data BreachFarmers Insurance is facing negative attention and lawsuits because of a three-month delay in notifying 1.1 million policyholders about a data breach. Here's what you can do if you're affected.
-
Serving the HNW Market: How Financial Advisers Can Break Through and Deliver Lasting ValueFinancial advisers have a significant opportunity to serve high-net-worth clients by elevating their capabilities, delivering comprehensive planning, building diverse teams and prioritizing family wealth education.
-
Dow Adds 587 Points as Stocks Bounce: Stock Market TodayThe main indexes rebounded sharply Monday after President Trump took a calmer stance toward China.
-
Dow Dives 878 Points on Trump's China Warning: Stock Market TodayThe main indexes erased early gains after President Trump said China is becoming "hostile" and threatened to cancel a meeting with President Xi.
-
Stocks Retreat as Shutdown Continues: Stock Market TodayWhile the main indexes closed lower today, Delta and PepsiCo gained ground on encouraging earnings reports.
-
S&P 500 Hits New Highs as Rally Resumes: Stock Market TodayTech stocks were the biggest gainers on Wall Street today, with Nvidia and Dell making notable moves.
-
Rally Fades on Mixed AI Revolution News: Stock Market TodayAll three main U.S. equity indexes opened higher but closed lower as a seven-session winning streak for the S&P 500 came to an end.
-
S&P, Nasdaq Hit New Highs: Stock Market TodayA late-day rally wasn't enough to lift the Dow into the green as its six-session winning streak came to an end.
-
Dow Adds 238 Points as UNH, CAT Pop: Stock Market TodayThe lack of a September jobs report didn't seem to worry market participants, with the data delayed due to the ongoing government shutdown.
-
Stocks at New Highs as Shutdown Drags On: Stock Market TodayThe Nasdaq Composite, S&P 500 and Dow Jones Industrial Average all notched new record closes Thursday as tech stocks gained.
