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Stock Market Gains, Social Media and Entertainment Shares Top



  • Manufacturing study in the Empire State in New York falls to a maximum
  • The reading of the confidence of homebuilders in the United States falls
  • Sotheby's shares jump nearly 60% after report says auction house should be private

US stocks advanced on Monday, driven by gains from social media and entertainment stocks, such as Facebook Inc. and Netflix Inc., as investors wait for the Federal Reserve's policy-defining meeting to begin Tuesday ,

How are the main indices?

The Dow Jones Industrial Average

DJIA, + 0.24%

increased by 52 points, or 0.2%, to 26,141, supported by gains in Boeing Co.

BA, + 2.25%

The S & P 500 index

SPX, + 0.29%

rose by 6 points, or 0.2%, to 2,893, with social media, entertainment and energy titles leading the way. The Nasdaq composite index

COMP + 0.84%

added 62 points, or 0.8%, to 7,859.

What motivates the market?

The Federal Reserve will be the focus this week, as markets expect more than two interest rate cuts this year on fears of global trade turmoil and a slowing economy. Investors will want to see if these expectations match those of the Fed, although no action is being taken on interest rates at this week's meeting.

Lily: Five things to watch at the Fed's pivotal meeting

A survey of manufacturing activity in New York State revealed its largest fall in negative territory in June. the The Empire State's manufacturing index lost 26.6 points in June, down 8.6 points in June, a record drop. Economists expected a positive reading of 10, according to an Econoday poll.

Any reading below zero indicates a contraction in activity. The last time the index was negative, it was in October 2016.

A reading from the June survey of the National Association of Home Builders showed that homebuilders 'confidence dropped by two points to 64 in June, missing economists' consensus prediction of an increase of 'a point. Any reading of more than 50 signals of improvement.

On world trade, US Secretary of Commerce Wilbur Ross downplayed the likelihood of a major deal at the Group of 20 summit later this month. even though President Donald Trump and Chinese President Xi Jinping meet. The most likely outcome will be an agreement between the United States and China to keep talking, he told the Wall Street Journal in an interview.

Meanwhile, the US Trade Representative's office is holding seven weeks of public hearings on the Trump government's proposal to lift a 25% tax on the $ 300 billion in Chinese exports, including goods from the United States. consumption such as mobile phones and laptops.

Lily: Fitch cuts global economic outlook for 2020 as trade war stumbles

What do analysts say?

"In recent days, bulls and bears have not made much progress, and by the close of Friday, S & P was less than half a point away from closing Monday. The week ahead brings us to the long-awaited month of June [Federal Open Market Committee] meeting, and although the market has not forecast a rate cut on Tuesday, such a decision is expected by July, and its non-compliance would be a surprise for the markets (based on the current positioning) ", wrote Mark Newton, a technical analyst at Newton Advisors, in a research note.

Ian Winer, a member of Drexel Hamilton's advisory board, suggested the Fed could cut rates faster and more aggressively than expected due to pressure from President Trump.

"I'm pretty sure that the beaten eyebrows led to the massive face in February, going from hawks to dovish. I also do not see how his comments and complaints about social media and live interviews have any effect on the state of mind of the media. [Jerome] Powell, he says. "I think the closer we get to the elections, the more we will hear about the same thing. The independence of the Fed is in question at this stage. All the while the president regrets that Xi can do what he wants with his monetary policy. "

What stocks are under discussion?

Facebook

FB + 3.43%

Shares rose 3.1%, as the social media company is expected to roll out its cryptographic coinage, the Libra coin, as early as Tuesday.

Netflix

NFLX, + 3.21%

Equities rose 1.1% after an analyst at Piper Jaffray projected the streaming video company to exceed US Q2 growth expectations for the second quarter.

Dish Network Corp. stock

DISH, + 4.52%

increased by 3.9% on the information that he is a leading bidders to buy assets that wireless service providers T-Mobile US Inc.

TMUS, + 0.55%

and Sprint Corp.

S + 1.36%

would have to throw in for the approval of the merger.

Actions of Array BioPharma Inc.

ARRY, + 57.01%

57% after the acquisition of the biopharmaceutical company focused on the development of anticancer Pfizer Inc.

PFE, -0.12%

in a transaction valued at $ 11.4 billion.

Chewy IncStock of

CHWY, -2.49%

fell 3.2% after the online pet retailer debuted Friday as a publicly traded company, up nearly 60%.

Auction house Sotheby's

OFFER, + 58.25%

announced the acquisition of BidFair USA, owned by Patrick Drahi, a telecommunications and media entrepreneur, and art collector, in a transaction valued at $ 3.7 billion. The company's shares rose 58%.

How are other markets traded?

Asian markets mainly closed up, Hong Kong's Hang Seng index

HSI, + 0.40%

up 0.4% and China's composite index in Shanghai

SHCOMP, + 0.20%

gradually increasing by 0.2%. Nikkei 225 from Japan

NIK + 0.03%

was stable, while in Europe, the Stoxx Europe 600

SXXP, -0.09%

slightly lower.

West Texas Intermediate Brut

CLN19, -0.86%

fallen, gold futures

GCN19, -0.18%

receded and the US dollar

DXY, -0.03%

slipped against a basket of his peers.

-Barbara Kollmeyer contributed to this report


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