Stocks Rise Pre-Bell as US-Iran Agree to Halt Renewed Hostilities; Traders Await Fresh Labor Data
The benchmark US stock measures were tracking in the green before the opening bell Monday as the US and Iran agreed to halt renewed hostilities, while traders await fresh labor market data later in the holiday-shortened week.The S&P 500 rose 0.5%, the Dow Jones Industrial Average increased 0.2% and the Nasdaq added 0.8% in premarket activity. The indexes finished Friday trading lower, with the Nasdaq extending its losses for a fifth consecutive session.US markets will be closed on Friday for the July 4 Independence Day holiday.The US and Iran agreed on Sunday to cease attacks on each other and allow commercial vessels to pass freely through the Strait of Hormuz, CNBC reported. "Technical talks are slated to continue on all areas of the (memorandum of understanding)," a US official told CNBC. "Both sides will stand down for now and vessels can move freely."The US launched a fresh round of strikes against multiple targets in Iran over the weekend, the US Central Command said in a statement on Saturday. The attacks came amid reports that Iran had carried out strikes on eight key US military installations across the Middle East.Last week, President Donald Trump accused Tehran of violating the ceasefire agreement signed earlier in the month by attacking ships passing through the strait with drones. "There may come a point when we are no longer able to be reasonable, and will be forced to militarily complete the job that we very successfully started," Trump said in a social media post on Saturday.West Texas Intermediate crude oil inclined 1.7% to $70.42 a barrel before the open, while Brent advanced 1.4% to $72.96.Investors will be looking ahead to fresh labor market data later this week, beginning with the Job Openings and Labor Turnover Survey for May on Tuesday, followed by the ADP employment report and the Challenger Job Cut report, both for June, on Wednesday. The government's nonfarm payrolls data for June is scheduled to be released on Thursday.Treasury yields were trending upwards in premarket action, with the two-year rate increasing 2.1 basis points to 4.11% and the 10-year rate rising 1 basis point to 4.38%.Last week, government data showed that consumer spending rose more than projected in May, while the Federal Reserve's preferred inflation metric accelerated to the fastest reading in more than two years.Minneapolis Federal Reserve President Neel Kashkari reportedly said Friday that an interest rate increase looks necessary this year.Consumer sentiment increased in June amid moderating gasoline prices, while inflation expectations eased, according to a survey by the University of Michigan on Friday.Monday's thin economic calendar has the Dallas Fed manufacturing survey for June at 10:30 am ET.Comcast (CMCSA) shares jumped 18% pre-bell after the company announced plans to separate its media and technology businesses into two publicly traded entities. Verizon Communications (VZ) edged down 0.2% as the telecommunications giant agreed with UK-based BT Group to combine their international businesses in a joint venture.Nike (NKE), Constellation Brands (STZ) and General Mills (GIS) are expected to release their latest financial results this week. AeroVironment (AVAV) and Concentrix (CNXC) post their earnings after the markets close Monday.Gold declined 1.1% to $4,052 per troy ounce, while bitcoin gained 1.3% to $60,117.
