US Open: US500 consolidates below this year's highs 📌

• Wall Street Opens Flat at the Start of a New Week
• Indices Consolidate at High Levels
• Investors Await Powell's Speech on Wednesday Following the Fed's Decision
• Dollar Continues to Rise (USDIDX)
• Macy's (M.US) Surges Over 20% After Receiving a Buyout Offer from an Investor

The first day of the week on Wall Street looks relatively calm. Major indices are consolidating at high levels. The S&P 500 (US500) is down 0.06% today, but remains around 4600 points, while the NASDAQ 100 (US100) is slightly up, rising above 16100 points. The calm in the markets may be due to investors waiting for the Federal Reserve's interest rate decision, which will be announced on Wednesday. While the decision itself might not bring major surprises, the focus will be more on Jerome Powell's speech, which presents an opportunity for him to cool the market euphoria. Powell may signal that while the improvement in inflation dynamics is evident, market expectations are detached from reality, and the Fed does not intend to prematurely ease policy.

The dollar continues its upward trend, causing a decline in the EURUSD rate. The strengthening dollar is not favorable for index quotations, and since its return to growth, a sideways trend has been observed in the S&P 500. Source: xStation 5

The US500 remains in a consolidation range above 4560 points since the end of November. Despite recent dynamic increases, the index is approaching its annual high of 4630 points.

Company News

Macy's (M.US) gains over 20% at the market open after an alleged $5.8 billion buyout offer from Arkhouse Management and Brigade Capital Management, valuing the company at about $21 per share, a 32.4% premium to its closing price on Nov. 30. Macy's, known for its valuable real estate including the iconic Herald Square location in New York City, is currently in the thick of the holiday season and preparing for a CEO transition in 2024.

source: xStation 5

Occidental Petroleum (OXY.US) is set to acquire Permian Basin energy producer CrownRock in a $12 billion deal, including debt, aiming to expand its Texas operations and boost production by 170,000 barrels per day in 2024. The purchase, financed through new debt, equity issuance, and assumed debt, marks Occidental's first significant acquisition since its controversial 2019 Anadarko Petroleum buy. The deal, closing in early 2024, follows a trend of oil producers expanding inventories but raises concerns over increased leverage on Occidental's balance sheet. The company plans substantial debt reduction in the coming 12 months through asset sales.

source: xStation 5