US stocks fluctuate, investors weigh data before policy moves
ZURICH, Nov 30 — US stocks fluctuated, following the smallest weekly move of Standard & Poor’s 500 Index since July, as investors awaited a slew of economic data this week and prepared for policy decisions from central banks.
The S&P 500 fell 0.2 per cent to 2,085.97 at 10:04am in New York, after rising less than 0.05 per cent last week. The gauge is on track for a second consecutive monthly advance. The Dow Jones Industrial Average slipped 36.64 points, or 0.2 per cent, to 17,761.85, and the Nasdaq Composite Index lost 0.1 per cent.
A report today showed contract signings to purchase previously owned US homes rose less than forecast in October after declining in the prior two months, showing residential real estate is cooling heading into the quieter selling season.
An index of pending home sales increased 0.2 per cent in October after a revised 1.6 per cent decline a month earlier, the National Association of Realtors said today. Economists projected a 1 per cent advance last month, according to the Bloomberg survey median.
“We’re treading waters for now as the markets are waiting for the central banks’ decisions,” said Benedict Goette, the Zurich-based founder of asset-management firm Compass Capital, currently merging with Crossbow Partners. “A Fed hike is pretty much priced in by now, so equities will probably trade in a tight range. There shouldn’t be any dramatic moves but any conviction is overshadowed by the end-of-the-year trading activity and markets thinning out.”
The lull in the stock market is continuing after light trading amid the Thanksgiving holiday. Other reports this week include manufacturing data tomorrow and the monthly Labor Department jobs update on Friday. Federal Reserve Chair Janet Yellen will speak to Congress on Thursday and the European Central Bank will hold its last policy meeting of the year.
The S&P 500 has rebounded 12 per cent from its low in August as concern eased that a Chinese slowdown would spread. Fed policy makers have signalled the economy is strong enough to withstand the first US interest-rate increase since 2006, and traders are pricing in a 74 per cent chance that the central bank will act at the conclusion of its two-day meeting on December 16.
The US benchmark stock index closed on Friday within 2 per cent of its record reached in May while alternating between between gains and losses over the last nine sessions, the longest such streak since 2013.
Meanwhile, the Russell 2000 Index of small-cap shares is in the midst of its longest rally since March and reached a three-month high on Friday, bolstered by gains in health-care companies. The gauge is on pace for a 3.5 per cent increase this month after rebounding 5.6 per cent in October.
Retailers will remain in the spotlight following the Black Friday weekend. More than 103 million people shopped online over the four-day weekend, which started on Thursday on Thanksgiving, according to an annual survey commissioned by the National Retail Federation.
That compares with fewer than 102 million who ventured into traditional stores, the trade group said. — Bloomberg
