Stock indexes were little changed in early trading Monday ahead of a speech by Fed Vice Chair Stanley Fischer, who has been hawkish on an interest rate hike before the end of the year.
The New York Fed’s manufacturing index fell to a negative-6.80 in October from a negative-1.99, missing estimates for an increase to 1.00. The decline is a mixed bag as investors weigh the negative economic data with concerns that it will prevent the Fed from raising rates.
Additionally, the recent cheapening in the US Treasury market has lured yield-hungry investors into the fixed-income market, contributing to softer equity prices. The yield on the 10-year Treasury note was as high as 1.81% overnight, its highest level in four month.
Bank of America (BAC) and Hasbro (HAS) both beat revenue expectations for the third quarter, though Hasbro profits came in below Wall Street estimates. Shares of Supervalu (SVU) traded higher after the supermarket chain said it plans to sell its Save-A-Lot business for approximately $1.4 billion to Onex, while Alon USA Energy (ALJ) received an all-stock acquisition offer from Delek US Holdings (DK).
The Dow Jones Industrial Average and Nasdaq Composite were both up less than 0.1% and the Standard & Poor’s 500 was down less than 0.1%.
Globally, the FTSE fell 0.4%, the Nikkei lost 0.1% and the Shanghai Composite dropped 0.7%.
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