US stocks pared early gains while investors watched US economic growth against slowdown signs overseas.
The Dow Jones Industrial Average gained 0.2% or 34 points to 17,043, paring gains as high as 0.5% after the opening as reported by The Wall Street Journal.
The S&P 500 added 0.1% or two points to 1,970, giving early advances. The Nasdaq Composite Index dropped 0.2% or 10 points to 4,465.
This move comes after the declines of major indexes on Friday, where the Dow Jones Industrial rose 1.2% to 17,009.69 in the largest gains in a day after seven months, amid strong September jobs reports showing the rate of unemployment dropping to below 6%, showing that the US economy was on the right track.
Michael W. Baird said, “A little follow through from Friday is probably what’s going on. Friday’s move was just spectacular. We had a great jobs report and, coupled with an oversold market, it came at the right moment.”
Hikes in interest rates are expected sometime next year. The path towards tightening money comes at a time when other central banks worldwide are pursuing easier policies designed to restart flagging growth.
Price Future’s group senior market analyst, Phil Flynn said, “Everybody’s starting to worry about how the divergence of the economies is going to play out in the long run.”
According to ABC News, Hewlett-Packard gained after announcing that it was splitting into two. One company is to focus on printing and personal computer while the other will focus on technology services like server, software and data storage. The stock rose 4.9% or $172 to $36.92.
Investors will be on the lookout for clues on the interest rate hikes timetable as the Fed is expected to release minutes of last month’s policy meeting this Wednesday.
Britain’s FTSE 100 gained 0.4% to 6,555 while Germany’s DAX gained 0.9% to 9,279. The CAC 40 of France added 0.3% to 4,292.
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