Stocks ended flat Monday and Treasury bond yields climbed as investors added to bets on accelerated tightening from the Federal Reserve heading into the close of the third-quarter earnings season.
The Dow Jones Industrial Average ended down 12 points, or 0.04% to 36,087, while the S&P 500 was flat, and the tech-heavy Nasdaq lost 0.04%
The 10-year Treasury yield was higher at 1.61%.
Retail will likely capture the market’s focus this week with third-quarter updates from Walmart (WMT) – Get Walmart Inc. Report, Home Depot (HD) – Get Home Depot, Inc. (HD) Report, Target (TGT) – Get Target Corporation Report and Macy’s (M) – Get Macy’s Inc Report this week, as well as what could be a key reading of October U.S. retail sales on Tuesday.
Louis Navellier, chief investment officer at Navellier & Associates, said the S&P 500 had been up 20 of the last 24 days.
“This is despite the highest inflation report in 30 years, surging pandemic numbers in Europe,” he said, “continued logistics bottlenecks, fears of defaults in China’s property developers, and cracks appearing in the US Treasury market as the Fed begins to taper its QE.”
Stocks are near all-time highs around the world, Navellier added, “as living with the pandemic and a return to a new normal takes hold.”
Boeing (BA) – Get Boeing Company Report shares climbed 5.6% after the world’s biggest planemaker scored two freighter sales at the Dubai Airshow and amid reports that authorities in China may be close to clearing the grounded 737 MAX for a return to service.
Tesla (TSLA) – Get Tesla Inc Report extended last week’s slide, slipping nearly 2%, after co-founder and CEO Elon Musk suggested he may sell off even more of his Tesla shares in a Twitter spar with Democratic Sen. Bernie Sanders.
Royal Dutch Shell’s (RDS.A) U.S.-listed shares rose 1.8% after Europe’s biggest oil company said it would move its corporate headquarters, as well as its main share listing, to London.
The Anglo-Dutch firm will also drop “Royal” from its name and abandon its dual corporate structure as it departs the Netherlands after more than 110 years amid a long-running dispute over taxes and climate targets.
The company is also hoping to assuage a call from activist investor Third Point to break the oil giant up into smaller, more efficient companies.