US open: Stocks fluctuate as investors digest Greek election and US snowstorms
US stocks fluctuated early on Monday, as investors digested the possible ramifications of the general election result in Greece.
AT&T Inc.
$21.91
10:59 04/10/24
Dow Jones I.A.
42,352.75
04:30 15/10/20
International Business Machines Corp.
$226.00
11:04 04/10/24
MeadWestvaco Corp.
$48.30
11:00 08/07/16
Just before 10:00 in New York, the Dow Jones Industrial Average was down 0.36%, while the S&P 500 stood 0.32% lower and the Nasdaq was down 0.30%.
As widely expected, anti-austerity party Syriza won the Greek general election on Sunday and, as it fell three seats short of achieving an overall majority, agreed a coalition with right-wing Independent Greeks. Both parties aim to renegotiate the nation’s international bailout.
“The reaction from the markets was not as disastrous as it could have been,” said Spreadex analyst Connor Campbell.
“It appears that the strength of the quantitative easing revealed last week, and the lack of surprise at the Syriza victory, has allowed the Eurozone indices to tentatively continue the rally that began last week, including record highs for the DAX.”
In New York, residents were told to stay at home as a blizzard forecasters call “life-threatening” could see as much as three feet of snow fall in some areas from New York to Boston. However, the New York Stock Exchange plans to operate on a normal schedule on Monday.
It’s “business as usual for now,” said spokesman Eric Ryan in an email.
In corporate news, telecommunication giant AT&T fell 0.87% after announcing it had reached an agreement with NII Holdings to purchase Nextel Mexico for approximately $1.88bn.
Meanwhile, IBM, rose 2.17% despite rumours that it may be preparing the largest corporate lay-off in history, as it prepares to make redundant a massive 112,000 positions out of a global workforce of 431,000.
Post Holdings rose 5.67% after announcing it will acquire privately-held MOM Brands Co. for $1.15bn, while MeadWestvaco soared over 15% after news emerged that the firm will merge with Rock-Tenn in a company with combined equity value of $16bn.
Ocwen Financial Group surged almost 15% after avoiding having its licence suspended as it agreed to a $2.5m settlement with the state of California, while DR Horton rose 5.40% after posting better-than-expected first quarter profit.
Oil prices fell early on Monday, with West Texas crude futures falling 0.26% to $45.47 a barrel and Brent sliding 0.68% to $48.46 a barrel.
“There has been a general shift to easing monetary policy at other global central banks since falling oil prices have lowered the inflation outlook, the onus remains on the Fed to hold the line on tightening,” said CMC Markets analyst Jasper Lawler.
Gold futures were lower by 0.55% to $1,285.50 while the dollar was advancing against the yen even while giving back some terrain versus the pound and the euro.