MARKET SNAPSHOT
U.S. stocks declined as investors await the consumer and producer price indexes on Wednesday and Thursday. Treasury yields rose as markets expect inflation to remain hot, but still price a 25-basis-point interest rate cut next week. Oil prices advanced, following indications that China plans to loosen monetary policy next year. Gold prices gained, overcoming a stronger dollar amid an increase in geopolitical tensions.
MARKET WRAPS
EQUITIES
U.S. stocks slipped to start the week, highlighted by declines in Nvidia shares after China announced an antitrust probe into the chip giant.
All three major indexes fell, with the Dow Jones Industrial Average dropping 0.5% and the S&P 500 and Nasdaq Composite both giving up 0.6%.
The declines were broad. Nine of the 11 S&P 500 sectors finished in the red.
Beijing's antimonopoly regulator said it was investigating Nvidia over suspicions that it had violated the terms of a conditional approval it received from Beijing in 2020 for its acquisition of an Israeli networking firm. The move came a week after the U.S. ratcheted up controls on China's access to high-end semiconductors.
Earlier Monday, Chinese shares ended mostly lower, as tech hardware stocks led declines. China released November inflation data, which showed continued demand weakness.
The Shanghai Composite Index was flat. The Shenzhen Composite Index fell nearly 0.4% and the ChiNext Price Index gave up 0.8%.
Hong Kong's Hang Seng Index, however, added 2.8%, after China's Politburo pledged to boost domestic demand, and stabilize the housing and stock markets.
In Australia, the S&P/ASX 200 Benchmark Index closed flat.
Japan's Nikkei Stock Average rose 0.2%, led by gains in tech stocks, as hopes for Fed rate cuts continued.
New Zealand's NZX-50 slipped 0.1%, tumbling late in the day due to weakness in real-estate and aged-care stocks.
COMMODITIES
Oil futures finished higher after China, the world's largest crude importer, eased its overall monetary-policy stance for the first time in 14 years.
The fall over the weekend of Syria's President Bashar al-Assad was also seen as a source of support, with traders pricing in some modest geopolitical risk premium around Middle Eastern crude flows.
West Texas Intermediate crude for January delivery gained 1.7% to settle at $68.37 a barrel on the New York Mercantile Exchange. February Brent crude climbed 1.4% at $72.14 a barrel on ICE Futures Europe.
Front-month gold futures rose to start the week, tacking on 1% to settle at $2,664.90 per troy ounce.
Geopolitical turmoil was once again the main catalyst for higher gold prices.
TODAY'S TOP HEADLINES
Canadian Prime Minister Trudeau Says Ottawa Would Retaliate in Event of 25% U.S. Tariff
Canadian Prime Minister Justin Trudeau said Ottawa would retaliate with its own set of tariffs should President-elect Donald Trump follow through on his pledge to slap a 25% levy on imports from Canada.
"We will, of course, as we did eight years ago, respond to unfair tariffs in a number of ways, and we're still looking at the right ways to respond," Trudeau said Monday at an event organized by the local chamber of commerce in Halifax, Nova Scotia.
The Canadian leader said there are signs that Americans "are beginning to wake up to the reality that tariffs on everything from Canada would make life a lot more expensive for Americans."
U.S. Wholesale Inventories Rose in October, Reversing September's Fall
Stocks at U.S. wholesalers rose in October, flipping the decline of last month, Commerce Department data said Monday.
Inventories at merchant wholesalers were up 0.2% on month, according to adjusted figures published Monday, matching economists' expectations and offsetting the 0.2% decline in September.
Inventories of durable goods-products made to last longer than three years-climbed 0.1%, while for nondurable they rose 0.3%.
Nvidia Probed in China Over Possible Antimonopoly Violations
SINGAPORE-Beijing fired its latest salvo in the U.S.-China semiconductor wars by announcing an antitrust probe into U.S. chip juggernaut Nvidia, a week after Washington ratcheted up controls on China's access to high-end semiconductors.
Industry watchers said the move was aimed at sending a message that China won't stand by quietly when targeted by trade and technology sanctions-a message with particular relevance as Donald Trump prepares to assume the presidency next month.
Shares of Nvidia, which makes the bulk of the cutting-edge chips that power artificial-intelligence servers, were down 2.3% in midday U.S. trading.
Oracle Stock Falls On Earnings, Sales Miss. Tech Giant Touts Strong AI Demand.
Oracle stock fell late Monday, after the database software giant reported fiscal second quarter earnings that were just shy of consensus expectations. Sales also came in below estimates despite what the company touted as record AI demand for its cloud services.
Please watch the video at Investors.com - AI's Next Frontier: The Tech Set To Dominate CES 2025
Oracle said in a news release that it earned an adjusted $1.47 per share on sales of $14.06 billion for the September-ended quarter. Analysts polled by FactSet projected the Austin, Texas-based company would post adjusted earnings of $1.48 per share on sales of $14.12 billion.
Omnicom to Acquire Interpublic in Deal That Will Reshape Advertising Industry
Omnicom Group will acquire Interpublic Group in a deal that will create the world's largest advertising business, the companies confirmed Monday.
A combined entity would have net revenue of more than $20 billion, based on 2023 figures for each company, and include storied ad agencies such as TBWA Worldwide and McCann Worldgroup. Their client rosters include Amazon, AT&T, PepsiCo, Unilever and Volkswagen.
The Wall Street Journal reported Sunday that the companies were in advanced merger talks. The stock deal values Interpublic at more than $13 billion.
Jeep Maker Stellantis Shakes Up North American Executive Ranks
Jeep maker Stellantis is shuffling its executive ranks in North America, a trouble spot that contributed to the recent departure of Chief Executive Carlos Tavares.
The changes include the return of company veteran Timothy Kuniskis, who retired under Tavares' tenure in June, to run Stellantis's Ram truck brand, a Stellantis spokeswoman said. The company also named a new U.S. sales chief.
"We're creating a streamlined structure that will drive the best outcomes for the region," the spokeswoman said.
Expected Major Events for Tuesday
00:30/AUS: Nov NAB Business Survey
01:00/PHI: Oct External Trade Performance
03:30/AUS: Reserve Bank of Australia monetary policy decision
04:01/MAL: Oct Manufacturing sales
04:01/MAL: Oct Industrial Production Index
06:00/JPN: Nov Preliminary Machine Tool Orders
09:59/CHN: Nov Trade
09:59/CHN: Nov Commodities Trade Data
09:59/CHN: Nov Energy Trade Data
21:45/NZ: 3Q Business Financial Data
23:00/SKA: Nov Economically Active Population Survey, including Unemployment
23:50/JPN: 4Q Business Outlook Survey
23:50/JPN: Nov Corporate Goods Price Index
00:00/AUS: Nov Vacancy Report
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
December 09, 2024 16:50 ET (21:50 GMT)
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