US equity benchmarks were modestly higher on Monday morning as traders continued to shrug off weak jobs data from Friday ahead of a raft of bond auctions that come after a period of tumult for US Treasuries.The economic data calendar is light Monday. The consumer credit report will be released an hour and a half before the close. Firmer growth of $16 billion is expected in July, according to the consensus estimate of analysts polled by Econoday following June’s increase of $14.6 billion which was held down by a dip in revolving credit.
Three-month and six-month bill auctions are scheduled for 11:30 am ET.
On Friday, government data showed that the pace of job creation in the US slowed in August helping to cement expectations that the Federal Reserve will cut interest rates later this month. Total nonfarm payroll employment rose by 130,000 last month, which was less than the downwardly revised July reading of 159,000 and below the consensus of analysts polled by Econoday for 163,000.
Separate data released on Monday in Japan showed that the pace of growth in Japan’s economy was slower than previously calculated in the second quarter as both domestic and private demand expansion were downwardly revised, according to data from the Economic and Social Research Institute of the Cabinet Office.
Five of the 11 Standard & Poor’s 500 Index sectors were higher at mid-morning, led by the energy, financial and communication services sectors, up by 1.6%, 1.4% and 0.9%, respectively. Decliners were led by health care, which was off 1%, and real estate, which fell 0.7%.
AT&T (T) was 3.3% higher after hedge fund Elliott Management disclosed a $3.2 billion stake in the telecommunications giant and said the company’s shares could be worth more than $60 a share by the end of 2021.
The Dow Jones Industrial Average was 0.4% higher, the Standard & Poor’s 500 Index was up by 0.2% and the Nasdaq was up 0.2%.