- US stocks were mixed on Monday as investors turn their attention to the Wednesday release of April CPI data.
- The inflation report will help guide the Fed as to whether it hikes interest rates in June.
- Regional bank stocks extended their gains from Friday after recent data showed deposits are not fleeing.
US stocks were mixed on Monday as bank stocks rallied while investors get ready for a key inflation report on Wednesday.
The consumer price index report for April will help guide the Federal Reserve in its interest rate decision at the next FOMC meeting in mid-June. The Fed hiked rates last week for the 10th consecutive time, increasing the fed funds rate by 25 basis points to just over 5%.
Some relief was found in regional bank stocks on Monday, with the sector extending its rebound from Friday as recent data showed continued stability in the deposit base of smaller banks. Shares of PacWest Bancorp surged 30% on Monday after the stock rallied 82% on Friday.
Here's where US indexes stood shortly after the 9:30 a.m. ET opening bell on Monday:
- S&P 500: 4,138.09, up 0.04%
- Dow Jones Industrial Average: 33,708.08, up 0.10% (33.70 points)
- Nasdaq Composite: 12,225.46, down 0.08%
Here's what else is happening this morning:
- Berkshire Hathaway's annual shareholder meeting took place over the weekend, and investors paid close attention to what Warren Buffett and Charlie Munger had to say.
- Berkshire Hathaway revealed that it sold about $6 billion worth of Chevron stock in the first quarter of the year, which represented about 20% of its stake in the oil giant.
- Buffett isn't worried about the growing concern of "de-dollarization" but said that the US government could suffer a painful fallout if it continues its pace of spending.
- Fundstrat's Tom Lee recommended investors tactically buy regional bank stocks as sentiment has reached "near absurd" levels.
In commodities, bonds and crypto:
- West Texas Intermediate crude oil rose 2.79% to $73.33 per barrel. Brent crude, oil's international benchmark, jumped 2.35% to $77.07.
- Gold rose 0.26% to $2,030.60 per ounce.
- The yield on the 10-year Treasury jumped 6 basis point to 3.49%.
- Bitcoin dropped 2.02% to $27,997, while ether fell 0.58% to $1,868.