*
U.S. equity indexes fall: DJI off ~0.5%
*
U.S. Mar factory orders MM 0.9% vs 1.1% est
*
U.S. Mar JOLTS job openings 9.590M vs 9.775M est
*
Euro STOXX 600 index declines ~0.4%
*
Dollar, gold edge up; bitcoin gains; crude down >3%
*
U.S. 10-Year Treasury yield falls to ~3.52%
Welcome to the home for real-time coverage of markets brought to
you by Reuters reporters. You can share your thoughts with us at
WALL STREET SLIPS AS THE FED'S POLICY DECISION LOOMS (0958
EDT/1358 GMT)
Wall Street is trading lower early on Tuesday as investors
await one more day to see whether the Federal Reserve pauses its
monetary tightening or keeps the door open for further rate
hikes to brake worrisome wage growth and other signs of
inflation.
Heath care /Industrials are leading the 11
S&P 500 sectors higher, while energy is the
biggest decliner.
Semiconductors are up as the Dow Transports and small caps are lower. Growth is declining less
than value .
A 25-basis-point increase in the federal funds rate is
expected when a two-day policy meeting ends on Wednesday, while
chances of a quarter-point hike on June 14 rose to 32.1% from
27.7% on Monday, according to CME Group's FedWatch Tool.
While there is likely to be a further reduction in forward
guidance from the Fed on Wednesday, the statement and comment
from Chair Jerome Powell should keep open the possibility of
further hikes, Macquarie economists in Canada said.
Further labor market deterioration is likely, "but based on
current data this is not yet a foregone conclusion. This dynamic
contributes to the argument that the FOMC is likely to keep its
subsequent policy options open," economists David Doyle and Neil
Shankar said in a note prepared for sales and trading personnel.
Incoming data will continue to deteriorate with the U.S.
economy entering a recession in 3Q23, the pair said. "This
informs our view that this week's rate hike is likely to be the
final one for the cycle," they said.
The following is a snapshot of market prices in early
trading:
(Herbert Lash)
*****
NASDAQ COMPOSITE: ONE TOUGH CEILING (0900 EDT/1300 GMT) Like the S&P 500 index , the Nasdaq Composite is bumping up against levels that have proven to be especially strong resistance:
In September of last year, the Composite put in a high at 12,270.189. After hitting new lows later in the year, the IXIC then rallied into an early February 2023 high at 12,269.555. Thus, the Composite stalled less than one point from its September high, before then suffering another sharp setback into mid-March. A subsequent recovery continues to be capped by the September 2022 high. Over the past five weeks or so, strength has continued to peter out on an approach of the September ceiling. The weekly highs have been 12,228, 12,225, 12,206, 12,245, and 12,228. On Monday, the Composite's high was at 12,261.318 before it settled back to end at 12,212.598. Given that this week will bring the results of a critical FOMC meeting, Apple's quarterly results and the latest non-farm payroll report, traders will be focused on whether the Composite can break through the ceiling, potentially clearing the way for further gains, or if it will once again fail, putting the index at risk for another downdraft.
(Terence Gabriel)
*****
FOR TUESDAY'S LIVE MARKETS POSTS PRIOR TO 0900 EDT/1300 GMT - CLICK HERE
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
IXIC05022023 Early market prices ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Terence Gabriel is a Reuters market analyst. The views
expressed are his own)
