MARKET SNAPSHOT
U.S. stocks ended lower, led by weakness in technology shares. Treasury yields inched higher ahead of remarks from Fed Chair Jerome Powell and payrolls data later in the week. The dollar was flat. Gold continued to gain ground. Oil settled lower following OPEC's decision to extend voluntary production cuts.
MARKET WRAPS
EQUITIES
Major U.S. stock indexes pulled back, weighed down by declines in the "Magnificent Seven" tech stocks.
The Dow Jones Industrial Average closed 0.3% lower, the S&P 500 fell 0.1%, and the Nasdaq Composite Index finished 0.4% lower.
Chip maker Nvidia surged another 3.6% after closing with a market capitalization above $2 trillion for the first time on Friday. But the other Magnificent Seven stocks-Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft and Tesla-all fell. Outside of the big technology names, it was a mixed day for stocks. Six of the 11 sectors in the S&P 500 rose, led by utilities, which climbed 1.6%.
Earlier in the day, Chinese shares ended higher as Beijing kicked off the annual plenary sessions. The benchmark Shanghai Composite Index ended up 0.4%, the Shenzhen Composite Index was 0.2% higher, while the ChiNext Price Index gained 0.6%. Hong Kong's benchmark Hang Seng Index was flat.
Japan's Nikkei Stock Average rose 0.5%, closing above the 40000 threshold for the first time. Chip stocks led the gains thanks to enthusiasm for artificial intelligence, while financial and shipping stocks posted some drops.
Australia's S&P/ASX 200 closed 0.1% lower amid weakness in commodity stocks following Friday's release of data showing Chinese manufacturing activity continuing to shrink. The ASX 200 energy sector retreated nearly 0.5% while the financial sector edged 0.3% higher.
New Zealand's NZX-50 closed 0.2% lower as real-estate weakened amid continued uncertainty over the path for interest rates. Shares of large-cap utility providers helped pare the overall losses.
COMMODITIES
Oil futures failed to build on last week's gains, with U.S. and global benchmark prices settling lower.
West Texas Intermediate crude for April delivery fell 1.5% to settle at $78.74 a barrel on the New York Mercantile Exchange. May Brent crude, the global benchmark, lost 0.9% to $82.80 a barrel on ICE Futures Europe.
A decision by the Organization of the Petroleum Exporting Countries and its allies on Sunday to extend voluntary production cuts through the second quarter had been widely expected, and raised concerns about the outlook for oil demand, analysts said.
The price of gold finished Monday at a record high.
March gold rose by 1.5% and settled at $2,117.70 a troy ounce. Gold has risen in each of its last three trading sessions, gaining 4.2%, or $84.70 a troy ounce in the rally.
TODAY'S TOP HEADLINES
Fed has the luxury of making policy without pressure of urgency, Bostic says
With the labor market strong and growth above trend, there isn't pressure on the U.S. central bank to cut interest rates, Atlanta Fed President Raphael Bostic said Monday.
"The good news is the labor market and economy are prospering, furnishing the FOMC the luxury of making policy without thepressure of urgency," Bostic said in a new essay posted on his regional bank's website.
The Atlanta Fed president, who is a voting member of the Fed's interest-rate committee, quickly added that this could change.
FAA Audit Finds Boeing Quality Control Failed in Alaska Air Incident
An audit by U.S. regulators in response to a midflight Alaska Air incident in January found that Boeing allegedly failed to comply with quality-control requirements in manufacturing.
The Federal Aviation Administration said Monday that its six-week audit of Boeing and manufacturing partner Spirit AeroSystems, which was prompted by a door plug on a Boeing 737-9 MAX plane blowing out midflight, found "non-compliance issues in Boeing's manufacturing process control, parts handling and storage and product control."
Regulators told Boeing last week that the company would have to address its audit's findings in a corrective action plan. The company has 90 days to outline a plan, which also must address conclusions of an expert review panel focused on Boeing's safety culture.
Former Twitter Executives Sue Musk Over Unpaid Severance
Four former top Twitter executives sued Elon Musk, saying he owes them a collective more than $128 million in severance.
The executives, who led the company during a lengthy and at times hostile takeover process in which they sued the billionaire to follow through with the acquisition after Musk changed his mind, say he fired them citing gross negligence and willful misconduct, which they deny. Musk said at the time they were fired for cause and he didn't have to pay severance.
The lawsuit, filed Monday in federal court in California, escalates a more than yearlong dispute between the former executives and the billionaire.
Ford Stock Jumps on Strong Month of EV, Hybrid Sales
Ford Motor's strong February is boosting its stock.
Ford reported February sales numbers for the U.S. on Monday. The company sold 174,192 units, up 10.5% year over year. Sales of all-electric vehicles totaled 6,368 units, up some 80% compared with 2023. Hybrid vehicle sales hit 12,045 units, up about 32%.
Battery electric vehicle sales accounted for about 3.7% of total sales, up from 2.2% a year ago. Total electrified vehicle sales-all-electric vehicles plus hybrids-accounted for about 10.6% of total sales, up from about 8% a year ago.
JetBlue and Spirit Airlines Call Off Merger Deal
JetBlue Airways and Spirit Airlines terminated their merger agreement, weeks after a judge ruled that the $3.8 billion deal would reduce competition and harm cost-conscious fliers.
The airlines had appealed the judge's January ruling, but some analysts said overturning it would probably be a long shot. JetBlue and Spirit said Monday that they had come to the decision that they probably couldn't overcome the legal and regulatory hurdles.
JetBlue Chief Executive Joanna Geraghty told employees Monday that the federal court ruling and the Justice Department's continued opposition made the probability of prevailing soon extremely low. Spirit CEO Ted Christie also said the airlines concluded that regulatory obstacles would likely be insurmountable.
Apple Fined $2 Billion in One of Europe's Largest Antitrust Actions
BRUSSELS-The European Union fined Apple about $2 billion, saying the iPhone maker set unfair rules for developers of music-streaming apps. The fine was one of the EU's largest-ever antitrust penalties.
The move could mark the start of a wider battle between the bloc's regulators and the tech giant.
The European Commission, the EU's executive body, said it found the company violated antitrust rules by restricting app developers from telling users about alternative ways to subscribe to music-streaming services. The commission said it ordered Apple to change its practices.
Expected Major Events for Tuesday
00:30/AUS: 4Q International Investment Position
00:30/AUS: 4Q Balance of Payments
00:30/HK: Feb Hong Kong Whole Economy PMI
00:30/JPN: Feb Japan Services PMI
00:30/SIN: Feb Singapore Whole Economy PMI
01:00/AUS: Feb VFACTS vehicle sales
01:00/PHI: Feb CPI
01:45/CHN: Feb China Services PMI
03:30/THA: Feb CPI
05:00/SIN: Jan Retail Sales
08:00/TAI: Feb CIER PMI
08:20/TAI: Feb International Reserves
21:00/SKA: Feb International Reserves
21:45/NZ: 4Q Value of Building Work Put in Place
22:00/AUS: Feb Australian PMI
22:00/AUS: Feb Australian PCI
23:00/SKA: Feb CPI
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(END) Dow Jones Newswires
March 04, 2024 17:04 ET (22:04 GMT)
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