Stocks and Treasurys closed higher on Monday at the start of a crucial week for the US economy that will be highlighted by the jobs report on Friday.
The financials sector, which includes bank stocks, gained the most on the S&P 500. On Friday, Federal Reserve Chair Janet Yellen said the case for an interest-rate hike has strengthened.
First, the scoreboard:
- Dow: 18,504.87, +109.47, (0.60%)
- S&P 500: 2,181.11, +12.07, (0.56%)
- Nasdaq: 5,237.13, +18.22, (0.35%)
- 10-year yield: 1.566%, -0.067, (-4.08%)
- Mylan is launching the first EpiPen generic at a discount of more than 50%. Its list price would be $300, half the cost of the branded product that sparked criticism from lawmakers and the public for its rapid rise. EpiPens are preloaded injections of epinephrine (adrenaline) that treat cases of the allergic, sometimes deadly reaction known as anaphylaxis.
- Consumer spending rose 0.4% in July, while personal income rose 0.3%, in line with expectations. Spending rose on higher auto purchases, the Commerce Department said. The personal savings rate rose for the first time since March, by 5.7%. Core PCE, the Federal Reserve’s favourite gauge of inflation, was 1.6% year-on-year — higher than expected, but shy of the Fed’s 2% target for a 51st straight month.
- Business leaders in Texas say workers are getting too expensive. The Dallas Federal Reserve’s monthly manufacturing index was reported at -6.2 for August (-3.9 expected). “The [oil] recovery will be hampered by a shortage of skilled workers driving wages up,” a survey respondent in the fabricated-metal industry said.
- The EU’s competition commissioner has ruled that Apple received “illegal state aid” from Ireland, according to the FT. That’s a deal that allowed the company to lower its tax bill in a way not available to other companies. Separately, Apple sent out press invitations for a September 7 event in which it will likely unveil the iPhone 7.