Wall Street stuck on the back foot

12:22pm: AT&T up on WarnerMedia spin out news

The Dow was down 135 points, 0.4%, to 34,247 at midday. The Nasdaq dropped 114 points, 0.9%, to 13,316, and the S&P 500 shed 19 points, 0.6%, to 4,151.

AT&T Inc (NYSE:T) stock climbed 0.7% to $32.47 on media reports that the telecommunications giant is in talks to spin out WarnerMedia with Discovery.

9.36am: Wall Street starts in red

The main indices on Wall Street have opened in the red on Monday morning, following the example set earlier in the day by global markets.

Shortly after the opening bell, the Dow Jones Industrial Average was down 0.04% at 34,369 while the S&P 500 dropped 0.28% to 4,161 and the Nasdaq fell 0.76% to 13,327.

While the markets as a whole were trending lower, Discovery Channel owner Discovery Communications Inc (NASDAQ:DISCA) was an early winner, jumping 9.5% to US$39.02 after it agreed to a US$43bn merger deal with telecoms giant AT&T Inc (NYSE:T).

7:55am: Wall Street to open lower

Wall Street is expected to take a step back at the market open on Monday, following the lead of a wider retreat across global markets.

Spread betting quotes point to the Dow Jones Industrial Average tumbling 120 points to 34,262 with the S&P 500 shedding 14 points at 4,160 and the Nasdaq 100 retreating 58 points to 13,335.

The big macroeconomic event today for US traders is the Empire Manufacturing Index for May, which is expected to dip to 24.0 from 26.3 in April.

“The US dollar is edging higher at the start of the week in risk-off trade. Rising Covid cases in Asia, weaker Chinese economic data and geopolitical troubles in the Middle East are lifting demand for the safe-haven greenback,” wrote Sophie Griffiths at OANDA.

“Still, the US dollar move has been small as investors look ahead to the release of the latest FOMC minutes on Wednesday, particularly in the wake of the very mixed data recently.

“Weak retail sales on Friday reinforced expectations that the Fed will stick to its accommodative stance for longer. Furthermore, US consumer confidence held steady in April, reining in fears of higher inflation. Treasury yields edged back close towards the key 1.60% level. Any move higher in the US dollar is likely to be short-lived,” she added.

Four things to watch for on Monday:

• Companies in the earnings diary today include Alignment Healthcare Inc (NASDAQ:ALHC), electric vehicle maker Fisker Inc (NYSE:FSR) and IT services group Verra Mobility Corp (NASDAQ:VRRM)
• Shares in telecoms giant AT&T Inc (NYSE:T) will be in focus amid reports that it is in talks over a possible combination with Discovery Inc (NASDAQ:DISCA)
• Bitcoin and the wider crypto market is also drawing attention after the digital currency saw wild swings in value over the weekend following more twitter comments from Tesla Inc (NASDAQ:TSLA) boss Elon Musk
• On the macro front, investors will be keeping an eye on US housing market data as well as speeches from a number of Fed representatives

Story by ProactiveInvestors