Merger news dominated Monday's trading session ahead of the year's end and final rate decision of 2022 from the central banks in U.S., the eurozone and the U.K.
Benchmark indexes traded higher ahead of rate decisions from central banks in the U.S., Europe and the U.K. Consumer expectations of forward looking inflation edged lower for the next year.
The wholesale price index in November indicated that inflation is deeply entrenched in goods and services sectors of the economy and slowing the future price increases to the Fed's target level will take time.
Major averages closed higher and crude oil traded near one-year low as investors look ahead ahead to the release of inflation data next week. The FTC sued to block the largest acquisition in the video game industry and the largest purchase by Microsoft.
Volatility returns to stock trading and crude oil drops to a level not seen since a year ago. Bond yields dropped in the U.S., Europe and Asia as central banks around the world moderate or pause rate hikes.
Stocks were on the defensive on the worries that the U.S. economy may be too hot and the Federal Reserve may have to continue with its aggressive rate hike campaign.
European markets extended losses after rate anxieties and domestic demand worries resurfaced. Oil tankers carrying Russian crude face additional delays after Turkey imposed EU sanctions.
AutoZone earnings dropped on higher costs and inventories rose. BuzzFeed plans to cut 12% of its workforce Signet Jewelers revised its adjusted operating margin outlook.
Major averages extended this week's losses and investors worried that the hotter-than-expected economic activities and tight labor market conditions may force the Federal Reserve to continue its aggressive rate hike campaign.
Rate-path worries resurfaced after the release of stronger-than-expected data on new orders and inventories and service sector growth. Natural gas prices plunged 10% on the expectations of milder weather over the next two weeks.
Unfilled orders increased for the 26th month in a row in October and new orders for goods increased in twelve of the last thirteen months. Service sector rebounded in November. China stocks jumped on the hopes of a pick up in business activities.
What is good for the U.S. economy was not good for stocks on Wall Street. Despite the strength in the labor market, labor participation rate remains below the pre-pandemic level. The U.S. dollar fell for the second week.
