Stocks Tread Water Ahead of Big Data; Oil Giants Plan $50B Merger
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U.S. stock futures tread water on Monday ahead of big economic data releases and earnings reports this week. Key reports include CPI inflation figures and results from companies like Coca-Cola, Cisco Systems, and Coinbase.
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Multiple Fed speakers are slated to comment this week, after Chair Powell reiterated a cautious stance on potential rate cuts given still-high inflation. Markets have pared bets on cuts starting in March.
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Oil giants Diamondback Energy and Endeavor Energy Resources are nearing a $50 billion merger that would create the top pure-play Permian Basin producer. Energy sector M&A has picked up amid high oil prices.
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Oil prices eased on Monday as investors took profits following stellar gains last week. Supply disruption risks from Middle East conflicts had supported prices.
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Key oil demand forecasts from OPEC and the IEA will be closely watched in respective monthly reports out on Tuesday. Forecasts for 2024 and 2025 are in focus given higher interest rates.