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Stock futures rise ahead of retail earnings, economic data


US stocks rallied at the open on Monday as Wall Street looked to be recovering from its worst week of the year.

The S&P 500 Index (^GSPC) rose 0.8%, while the Dow Jones Industrial Average (^DJI) increased by 0.6%. Contracts on the tech-heavy Nasdaq Composite (^IXIC) increased by 1.1%.

The yield on the 10-year US Treasury note fell to 3.91% on Monday morning.

On the economic data front, new orders for durable goods made in January fell to 4.5%, the biggest drop since April 2020. Census Bureau reports. The drop was more pronounced than economists’ estimates of 4.0%.

“The manufacturing sector will remain under pressure in the coming months, but details in the report on durable goods orders and shipments for the month,” said Lydia Boussour, senior economist at EY Parthenon. 1 shows that factory activity started the new year better than the main figure suggested.” , wrote in a post-release statement.

Stocks closed worst week of 2023 on Friday after the Federal Reserve’s preferred inflation gauge showed it unexpectedly accelerated in January and consumer spending spiked. The “core” Personal Consumption Expenditure (PCE) price index – which excludes volatile food and energy ingredients – shows prices rose 0.6% in January and 4.7% over the same period. with last year.

The Commerce Department also reported consumer spending rose 1.8 percent last month from December, the biggest increase in nearly two years. The results of the survey increased investor anxiety that the Fed will continue its aggressive tightening campaign to combat inflation.

Declining optimism weighed on the major indexes, as the Dow Jones Industrial Average fell 3% for a fourth straight weekly loss, while the S&P 500 fell 2.7% for its worst week since early December. and the tech-heavy Nasdaq fell 3.3%.

Data compiled by Study 22V found that rising interest rates increased the correlation between growth stocks and their value jumped to their highest levels since at least 2005.

This week, investors will remain interested in the retail sector, with earnings from Target (TGT) on deck before the market opens on Tuesday after Walmart (WMT) warned prudent profit guide for next year. Home improvement retail giant Home Depot (HD) also has disappointing guidance for fiscal year 2023.

Elsewhere on the earnings calendar results from Costco (VALUE), Macy’s (m), Dollar tree (DLTR) and Kohl’s (KSS) to introduce retailers.

Meanwhile, the percentage of companies topping analysts’ expectations for the fourth quarter was historically low. Data from FactSet found that 68% of S&P 500 companies reported fourth-quarter earnings that fell short of expectations, down from the five-year average of 77% and the 10-year average of 73%.

In single stock moves, Seagen Inc. (SGEN) stock spiked Monday morning after report from The Wall Street Journal reported that Pfizer (PFE) is in early-stage talks to buy the cancer drug maker in a deal that could be worth billions of dollars.

Berkshire Hathaway Corporation (BRK-BUILD) stocks rise after CEO Warren Buffett annual letter to shareholdersgives readers a glimpse of his point of view about share buybacks, taxes, corporate accounting, and his sense of optimism about the economy.

Shares of Union Pacific (UNP) rose after the largest freight operator announced naming plans a new CEO after pressure from activists to remove Lance Fritz from the job.

Warren Buffett, CEO of Berkshire Hathaway, attends the annual Allen and Co.  Sun Valley, at Sun Valley, Idaho, USA, July 6, 2022. REUTERS/Brendan McDermid

Warren Buffett, CEO of Berkshire Hathaway, attends the annual Allen and Co. Sun Valley, at Sun Valley, Idaho, USA, July 6, 2022. REUTERS/Brendan McDermid

Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniroromerotv

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