The major stock market indexes posted small losses in a quiet Monday session as investors look to the Federal Reserve this week for answers. The central bank meets Tuesday and Wednesday, with policymakers set to raise rates by 75 basis points once again.
The S&P 500 pulled back 0.5% while the Nasdaq composite trimmed 0.9%. The Dow Jones Industrial Average was down 0.3%. The Russell 2000 small-cap index held up better than other benchmarks, gaining 0.2%. The Dow is finding support at its 200-day moving average.
The tech-heavy Nasdaq 100-tracking Invesco QQQ Trust ETF lost 1%.
NYSE and Nasdaq traded in lower volume than at the same time on Friday.
Crude oil fell 1.4% to $86.61 per barrel, while the Energy Select Sector SPDR ETF edged up 0.6%. Natural gas soared 8.8% and above $6 per million British thermal units.
The 10-year Treasury note yield rose 2-basis points to 4.04%. Bitcoin gave back 1.4% to $20,390.
European markets were all positive, with the German DAX stock index up 0.4%, the London FTSE 100 1.1% and the Paris CAC 40 0.2% in afternoon trading.
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Investors On Edge Of Their Seats Ahead Of The Fed
The FOMC announcement is scheduled for Wednesday Nov. 2 at 2:00 pm ET, with Fed Chair Jerome Powell hosting a 2:30 pm ET news conference. 86% now expect the Fed to raise rates by 75 basis points while 14% look for a 50-basis-point hike, according to the CME FedWatch Tool.
Investors and analysts will be scouring for clues on the size of rate hikes that could push the economy into recession next year.
The are also keeping a close eye on inflation numbers and the employment situation, with the ADP Employment report due out Wednesday at 8:15 am ET.
Stock Market Movers: Brazilian Oil Stock Plunges
Howmet Aerospace tumbled 3.2% after reporting a small miss on Q3 sales. It also lowered Q4 sales guidance and full-year 2022 EPS guidance.
Caterpillar dipped 1% after UBS downgraded the equipment giant to neutral and raised the price target to $230.
CAT stock gapped up 7.7% Thursday after beating Q3 EPS and sales.
Shares are building the right side of a base. The relative strength line hit a new high, as indicated by the blue dot on the MarketSmith chart.
Brazilian state-owned oil giant Petrobras dropped 5.4% on heavy volume, adding to last week's drop after Luiz Inacio Lula da Silva won Sunday's presidential runoff.
AMD Sinks On Downgrade
Advanced Micro Devices fell 2.8% after Northland Capital Markets downgraded the stock to market perform from outperform, and cut its price target to $60.
The chipmaker reports Q3 earnings on Tuesday after the closing bell, with analysts looking for a profit of 72 cents per share on $5.69 billion in revenue.
AMD stock hit a two-year low earlier this month, caught in a downward spiral driven by supply chain disruptions and political strife with China. It has lost more than 60% since posting an all-time high in November 2021.
There are still no signs of a bottom and the Relative Strength Rating currently sits at an abominable 13.
Pharma Stock Pops After Upgrade
Rare disease drug maker BioMarin Pharmaceutical rose earlier but has pulled back 0.5%, after Oppenheimer upgraded the stock to outperform and raised its price target to $110.
Other big earnings reports this week include Uber Technologies, Arista Networks, Eli Lilly, NXP Semiconductor and Pfizer.
IBD 50 Stock Market Movers
The Innovator IBD 50 ETF inched up 0.7%, holding up better than the major stock market indexes.
Earthstone Energy an IBD 50 leader, adding 3.6% on light volume.
Medical technology company Axonics gained 4.1% ahead of Q3 earnings after Monday's close.
UnitedHealth Group rose 1.2% on light volume, and broke out of a cup-with-handle base and hitting the 553.23 buy point.
Pure Storage rose 2.1% after Morgan Stanley upgraded the stock to overweight and raised its price target to $37. Shares are in a choppy base with a buy point of 31.52. The relative strength line hit a new high on the chart. The company has a best-possible 99 EPS Rating.
On Semiconductor sank 5.3% despite reporting a beat on Q3 EPS and sales. ON is ranked No. 1 in the Electronics-Semiconductor Manufacturing industry group. The group is ranked a low 141st out of the 197 IBD groups. Shares are finding support at its 50-day moving average.
