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Stocks - Wall Street Opens Slightly Higher

Published 09/09/2019, 09:41 AM
Updated 09/09/2019, 11:32 AM
© Reuters.
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Investing.com - Wall Street ticked higher at the open on Monday as mixed global economic data cemented expectations for a wave of monetary stimulus from central banks, including the Federal Reserve.

The Dow was up 24 points, or 0.09%, by 9:45 AM ET (13:45 GMT), while the S&P 500 added on four points, or 0.1%, and the Nasdaq composite was up 12 points, or 0.1%.

Fed Chairman Jerome Powell said Friday the central bank would "act as appropriate" to sustain economic expansion, comments that most took as accepting the need for another quarter-point interest rate cut at the Fed's policy meeting this month.

The Fed cut its target Fed funds rate for the first time since 2008 in July, setting a new range between 2% and 2.25%. Bets on another cut rose after data on Friday showed the U.S. economy added fewer jobs than expected in August, although wage growth remained robust in a tight labor market.

The European Central Bank is also expected to cut rates later this week.

In company news, AT&T (NYSE:T) shares jumped 4.9% after activist investor Elliott Management announced it had built a $3.2 billion stake in the company, targeting a share price over $60 by the end of 2021. In a public letter, Elliott sharply crticized some of AT&T's past deal-making, notably its expensive acquisitions of Time Warner and DirecTV.

Shares in Fannie Mae (OTC:FNMA) surged after Treasury Secretary Steven Mnuchin said that a deal is close to end the government's profit sweep, and allow it to retain its earnings. Freddie Mac's (OTC:FMCKL) stock was higher on the same news.

Boeing (NYSE:BA) shares fell 1.5% after it suspended load testing of its new widebody 777X aircraft over the weekend, as media reports said a cargo door failed in a ground stress test.

Away from equities, the U.S. dollar index edged down 0.1% to 98.23, while the yield on the 10-year Treasury was last trading at 1.61%.

In commodities, gold futures were up $2.45, or 0.2%, at $1,518.15 a troy ounce, while crude oil rose 1.7% to $57.48 a barrel.

--Reuters contributed to this report

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