Stocks climb as investor eye fresh inflation data ahead of Fed meeting

Investing.com — U.S. stocks rose Monday as investors continued their bullish bets on risk assets, a day ahead of fresh inflation data and the Federal Reserve’s final two-day policy meeting this year.

By 14:07 ET (19:07 GMT), the benchmark S&P 500 was up 0.3%, the tech-heavy rose 0.2%, and the 30-stock gained 0.3%, 116 points.

Both the S&P 500 and Nasdaq posted their highest closing levels since early 2022 in the prior session, while the Dow notched its sixth consecutive weekly gain — its longest streak of positive weeks since 2019.

Fed meeting eyed for clues on rate cuts next

The Federal Open Market Committee is tipped to hold rates at their current range of 5.25% to 5.50% on Wednesday. Much of the focus will likely be the Fed’s projections for the economy, inflation, and the number of cuts expected next year.

The meeting will arrived on the heels on fresh data expected to show ongoing slowing in price pressures.

Comments from Fed chair Jerome Powell will also be garnered for a potential push back on market expectations for a sooner rather than later rate cut.

In the wake of last week’s jobs data and separate numbers showing the slowest annual rise in underlying price gains in two years in October, markets are now pricing in a nearly 50% chance of a quarter-point rate decrease in borrowing costs as soon as May, according to Investing.com’s .

Cigna scraps Humana tie-up talks

U.S. health insurer Cigna (NYSE:) has ended its drive to acquire peer Humana (NYSE:), according to multiple media reports, pulling the plug on a deal that would have created an insurance behemoth worth over $140 billion.

The reports said neither Cigna nor Humana could agree on a price, while regulatory concerns and a fall in their share prices are also believed to have soured sentiment for a deal.

The abandoned talks come as Connecticut-based Cigna announced that it is aiming to roll out an additional $10B in share buybacks.

Macy’s jumps on buyout fever

Macy’s (NYSE:) shares also surged more than 21% after the department store retailer reportedly received a $5.8 billion buyout offer from real estate-focused investing business Arkhouse Management and global asset manager Brigade Capital Management.

The investor group proposed a price of $21 per share for the department store operator, unnamed sources familiar with the matter told the Wall Street Journal. The offer represents a premium of roughly 21% based on Macy’s closing stock price of $17.39 on Friday.

Tech takes a breather as Treasury yields creep higher; Chip stocks climb

Tech stocks were the biggest laggard on the day, paced by a more than 1% decline in Microsoft Corporation (NASDAQ:) and Alphabet Inc Class A (NASDAQ:), though a sharp jump in semiconductor stocks kept a lid on losses.

Globalfoundries Inc (NASDAQ:), Applied Materials Inc (NASDAQ:), and Broadcom Inc (NASDAQ:) led chips higher, with the latter up more than 9% after Citi resumed coverage on the chipmaker with a buy rating.

Occidental Petroleum in deal for CrownRock as consolidation in energy continues

Occidental Petroleum Corporation (NYSE:) said Monday it agreed a deal to buy shale oil driller Crownrock for $12B as the oil major seeks to expand its presence in the Midland basis.

The move underscored an ongoing consolidation in the energy sector following Exxon Mobil (NYSE:)’s $6B takeover deal for shale rival Pioneer Natural Resources (NYSE:) earlier this year.

Elsewhere in the energy sector, Hess Corporation (NYSE:) and Baker Hughes Co (NASDAQ:) were among the top gainers, up more than 1% even as traded sluggish amid cautious trading ahead of the Fed meeting this week.

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(Scott Kanowsky contributed to this report.)