(Bloomberg) — Stocks edged lower amid thin trading after an unexpected drop in consumer confidence. The dollar advanced after a US government shutdown was averted.
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Following solid gains on Wall Street Friday, equities struggled to gain traction at the start of a holiday-shortened week. The Conference Board’s gauge of confidence decreased to 104.7, data released Monday showed. The median estimate in a Bloomberg survey of economists called for a reading of 113.2.
“The bounce in the stock market on Friday probably had a lot to do with the quarterly expiration, but it still calmed things down enough so that the last week and half of the year will probably be quiet and somewhat uneventful,” said Matt Maley at Miller Tabak.
Morgan Stanley’s Michael Wilson says negative breadth — where the number of constituents falling outnumber those that are rising — may not matter as much for high-quality stock indexes with robust price momentum. Investors have shown a growing propensity to use price momentum as a key factor in their investment strategy, while de-emphasizing portfolio rebalancing, he noted.
“This all helps to explain the extreme concentration we’re seeing in many equity markets,” Wilson said. “The anomaly between breadth and price that so many are highlighting could normalize if/when the abundance of liquidity subsides.”
The S&P 500 fell 0.4%. The Nasdaq 100 slipped 0.3%. The Dow Jones Industrial Average slid 0.7%.
Treasury 10-year yields advanced three basis points to 4.55%. The Bloomberg Dollar Spot Index added 0.4%.
Corporate Highlights:
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Qualcomm Inc. prevailed at trial against Arm Holdings Plc’s claim that it breached a license for chip technology that the world’s largest maker of mobile-phone processors acquired when it bought a startup in 2021.
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Rumble Inc., a video-sharing platform, said that Tether is set to acquire a stake in the firm for $7.50 per share.
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Nordstrom Inc. is going private through an all-cash transaction valued at about $6.25 billion in a bet by the founding family that the department-store company will be more successful without the scrutiny and demands of the public market.
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MetLife Inc. is nearing a deal to buy PineBridge Investments’ assets outside of China from Hong Kong billionaire Richard Li’s Pacific Century Group, according to people familiar with the matter.
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Xerox has agreed to buy the laser printer maker Lexmark International Inc. from a consortium of Asian investors in a deal valued at $1.5 billion.
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Hyatt Hotels Corp. is in exclusive talks with Playa Hotels & Resorts NV over strategic options that may include an acquisition of the all-inclusive resort owner.
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The Container Store Group Inc. has filed for bankruptcy to address mounting losses and a substantial debt load that has weighed on the chain.
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Aviva Plc agreed to buy Direct Line Insurance Group Plc for roughly £3.7 billion ($4.65 billion) in a deal that would create the UK’s largest motor insurer.
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Prosus NV is acquiring online travel agency Despegar.com Corp. for $1.7 billion as the Dutch technology investor seeks to expand its online commerce presence in Latin America.
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Honda Motor Co. and Nissan Motor Co. took their first historic steps toward merging, in hopes of creating a juggernaut that can survive aggressive competition from China that’s roiling the industry.
