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Investing.com — U.S. stocks retreated in muted trading Monday, as investors turned cautious approaching the end of a generally positive month and the release of key inflation data.
By 09:30 ET (14:30 GMT), the fell 14 points, or 0.1%, the traded 4 points, or 0.1%, lower, and the dropped 5 points, or 0.1%.
The main Wall Street indices closed last week higher, the fourth-straight winning week for the three major averages, fuelled by falling Treasury yields and cooling inflation readings that could signal the end of Federal Reserve rate hikes.
The has rallied 12% so far in November, the has advanced more than 9%, and the is up almost 11%.
PCE inflation data in spotlight
However, the approach of the month’s end appears to be generating a degree of caution given these hefty gains, especially ahead of the release of a key inflation reading later in the week.
The Fed’s preferred inflation gauge, the , is due on Thursday, and expected to have risen just 0.1% on the month in November, a drop from 0.4% in September.
The , which strips out food and fuel costs and is considered a better gauge of underlying inflation, is expected to have risen 3.5% on a year-over-year basis, a drop from 3.7% the prior month, and the lowest since mid-2021.
Figures on and for October will be studied Monday, and this week also sees the first revision of third quarter , the weekly report on and the Fed’s .
Black Friday sales in focus
The retail sector will be in the spotlight during the session, with investors looking for updates about the start of the shopping season in the wake of Black Friday and ahead of Cyber Monday.
Several U.S. retailers have warned, in their quarterly earnings reports, that consumer spending is weakening with shoppers facing financial pressure. That said, the shares of retail giants Amazon (NASDAQ:) and Walmart (NYSE:) both traded higher at the start of the session.
Additionally, Crown Castle International (NYSE:) stock rose 5.5% with activist investor Elliott Investment Management pushing for change at the wireless tower owner, after disclosing a $2 billion stake.
Oil slides ahead of OPEC+ meeting
Oil prices drifted lower Monday, as investors warily awaited the delayed OPEC+ meeting later in the week for news of production levels into 2024.
By 09:30 ET, the futures traded 0.2% lower at $75.39 a barrel, while the contract dropped 0.2% to $80.33 a barrel.
The crude benchmarks posted small gains last week, the first winning week in five, but fell sharply after the Organization of Petroleum Exporting Countries and allies, a group known as OPEC+, postponed a meeting to Nov. 30 from Nov. 26. The delay was reportedly caused by disagreements over planned production cuts.
The group has since moved closer to a compromise, according to reports, with an extension of the unilateral Saudi and Russia cuts through at least the first quarter of next year looking likely.
Additionally, rose 0.5% to $2,012.05/oz, rising to their highest level since May earlier, while traded 0.1% lower at 1.0931, with the dollar on track for its biggest monthly slide in a year.
(Oliver Gray contributed to this item.)
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