- Inflation, retail sales data on tap this week
- Biden corporate tax hike in focus
- Moderna, Pfizer drop after report that boosters not widely needed
- Indexes: Dow up 0.39%, S&P 500 off 0.06%, Nasdaq down 0.21%
NEW YORK, Sept 13 (Reuters) - Wall Street stocks wavered on Monday, struggling to regain ground lost in last week's bruising sell-off, but economically sensitive shares rose as investors focused on potential corporate tax hikes and upcoming economic data.
The three major U.S. indexes were mixed, with the bellwether S&P 500 index (.SPX) essentially flat as it flirts with the prospect of extending its five-day losing streak.
"We had a good rally in the beginning of the day, but it's faded," said Oliver Pursche, senior vice president at Wealthspire Advisors, in New York.
"September's always bumpy and we saw that last week," Pursche added. "But generally speaking the environment is positive for stocks and probably will be through the end of the year."
Market participants are focused on the likely passage of U.S. President Joe Biden's $3.5 trillion budget package, which is expected to include a proposed corporate tax rate hike to 26.5% from 21%. read more
Goldman Sachs analysts see the corporate tax rate increasing to 25% and the passage of about half of a proposed increase to tax rates on foreign income, which they estimate would reduce S&P 500 earnings by 5% in 2022. read more
But Pursche believes the corporate tax increase is likely to be smaller.
"Any tax hikes are going to be challenging to pass and are going to be much milder than what the Democrats want," Pursche said.
The Labor Department is due to release its consumer price index data on Tuesday, which could shed further light on the current inflation wave and whether it is as transitory as the Fed insists.
Other key indicators due this week include retail sales and consumer sentiment, which could illuminate how much the demand boom driven by economic re-engagement has been dampened by the highly contagious COVID-19 Delta variant.
The Dow Jones Industrial Average (.DJI) rose 135.46 points, or 0.39%, to 34,743.18, the S&P 500 (.SPX) lost 2.64 points, or 0.06%, at 4,455.94 and the Nasdaq Composite (.IXIC) dropped 31.55 points, or 0.21%, to 15,083.95.
Coinbase Global Inc (COIN.O) announced plans to raise about $1.5 billion through a debt offering aimed at funding product development and potential acquisitions. The cryptocurrency exchanges shares slid 2.9%. read more
Salesforce.com Inc (CRM.N) dipped 1.7% as rival Freshworks Inc's regulatory filing indicated that the business engagement and customer engagement software company is aiming for a nearly $9 billion valuation in it U.S. debut. read more
Advancing issues outnumbered declining ones on the NYSE by a 1.46-to-1 ratio; on Nasdaq, a 1.07-to-1 ratio favored advancers.
The S&P 500 posted 12 new 52-week highs and one new low; the Nasdaq Composite recorded 44 new highs and 65 new lows.
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