U.S. Stocks Climb Ahead of Fed Meeting
March 18 2019 - 4:55PM
Dow Jones News
By Donato Paolo Mancini and Akane Otani
U.S. stocks edged higher Monday as investors looked ahead to key
updates this week from major central banks.
The Federal Reserve and the Bank of England are both expected to
hold interest rates steady at the conclusion of their meetings this
week. Ahead of the rate decisions, fund managers and analysts say
they will be looking for clues on how long officials think they
will hold rates steady while gauging the softening in the global
economy.
"How long this pause will last is what the market is after,"
said Esty Dwek, senior investment strategist at Natixis Investment
Managers. Signals from the Fed that rates would likely stay steady
have helped stocks bounce higher since January.
"We expect a stabilization in growth, not just in the U.S. but
also in major economies, which means that there might be one hike
this year," Ms. Dwek said.
The S&P 500 added 10.46 points, or 0.4%, to 2832.94,
building on gains after closing out its best week since November.
The Nasdaq Composite advanced 25.95 points, or 0.3%, to 7714.48,
and the Dow Jones Industrial Average rose 65.23 points, or 0.3%, to
25914.10.
Boeing slid $6.71, or 1.8%, to $372.28 following a Wall Street
Journal report that federal prosecutors and Transportation
Department officials were scrutinizing the development of the
company's 737 MAX jetliners. The stock, the worst performer in the
Dow on Monday, chipped away roughly 45 points from the blue-chip
average's gains.
Marriott International jumped $2.64, or 2.2%, to $124.96 after
the company said it was planning to open more than 1,700 hotels
over the next three years.
Energy shares in the S&P 500 rose 1.4%, buoyed by a rise in
U.S. crude oil prices.
Elsewhere, the Stoxx Europe 600 edged up 0.3%, lifted by gains
in shares of banks and basic resources companies.
Commerzbank and Deutsche Bank, Germany's two biggest lenders,
rose more than 4% apiece after confirming Sunday that they were
formally discussing a potential merger.
"The Deutsche-Commerzbank merger is a sign of the times," said
Seema Shah, senior global investment strategist at Principal. "You
get into the late-cycle period, where growth is tough and you don't
have support for the northern [European] banking sector with
negative interest rates. Then you're likely to see
consolidation."
Meanwhile, the British pound fell 0.3% against the U.S. dollar
as analysts weighed uncertainty over the U.K.'s departure from the
European Union.
British lawmakers last week rejected for the second time an exit
deal struck by U.K. Prime Minister Theresa May and Brussels and
voted to delay the final Brexit deadline, currently set for March
29.
Mrs. May could seek to put the withdrawal agreement to the vote
a third time this week if she is able to secure support from her
ranks, although analysts say that scenario looks unlikely for now.
The U.K.'s FTSE 100 finished up 1%, notching its sixth consecutive
session of gains.
Earlier, stocks across Asia closed higher. The Shanghai
Composite soared 2.5% for its biggest one-day gain since February,
while Japan's Nikkei Stock Average added 0.6%.
Write to Akane Otani at akane.otani@wsj.com
(END) Dow Jones Newswires
March 18, 2019 16:40 ET (20:40 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Mar 2024 to Apr 2024
FTSE 100
Index Chart
From Apr 2023 to Apr 2024