Markets slip ahead to Fed decision, inflation data

Dow was off 80, decliners over advancers 3-2 & NAZ went up 33.  The MLP index rose 2 to the 292s & the REIT index slid back to the 371s.  Junk bond funds were little changed & Treasuries saw selling which increased yields (more below).  Oil added 1+ to the 76s & gold slid 5 to 2319.

Dow Jones Industrials 

Treasury yields were higher as investors looked ahead to the Federal Reserve's monetary policy meeting & key inflation data due this week.  The yield on the 10-year Treasury was up by nearly 4 basis points at 4.465% & the 2-year Treasury yield was last 1 basis point higher at 4.883%.  Yields & prices move in opposite directions & 1 basis point equals 0.01%.  The Fed will meet tomorrow & Wed, & is widely expected to leave interest rates unchanged at the conclusion of its meeting.  The same holds true for the the Jul meeting.  Traders were last pricing in a 49% chance of rates being cut in Sep, according to CME Group's FedWatch tool.  Investors will, however, be closely following guidance issued by the central bank this week, as well as the post-meeting press conference, scanning them for hints about the outlook for rates & the economy.  Also this week, the consumer & producer price index reports for May are set to be published, providing the latest inflation insights.  Policymakers have repeatedly said that they are looking for more data evidence to be sure that inflation is easing sustainably toward the 2% target before making interest rate cuts.  That has prompted many investors to hope for economic data that signals the economy is cooling.

Treasury yields rise as investors look to Fed meeting, inflation data

Moderna (MRNA) said its combination vaccine that targets both Covid-19 & the flu was more effective than existing standalone shots for those viruses in a late-stage trial.  The biotech company is the first to release positive phase 3 data on a Covid & flu combination shot, giving it a potential lead over the competition.  MRNA plans to file for regulatory approval for its combination jab this summer in the US & hopes it can enter the market in 2025, CEO Stephane Bancel said.  The combination shots will simplify how people can protect themselves against respiratory viruses that typically surge around the same time of the year.  The added convenience is critical as fewer Americans roll up their sleeves to get vaccinated against Covid.  Bancel added that combination shots could reduce the burden of respiratory viruses on pharmacists & the broader US health-care system, which has been grappling with a labor shortage that has many workers stretched thin.  MRNA's messenger RNA combination shot, called mRNA-1083, is made up of both the company's vaccine candidate for seasonal influenza & a newer, “next-generation” version of its Covid shot.  Both of those experimental vaccines, mRNA-1010 & mRNA-1283, have shown positive results in separate phase 3 trials.  The stock fell 4.41.

Moderna’s combination Covid, flu vaccine shows positive late-stage trial data

Abbot (ABT), a Dividend Aristocrat, announced it received approval from the Food & Drug Administration for 2 new continuous glucose monitoring systems, including one for people who don't have diabetes.  Both will be available over the counter without a prescription.  A continuous glucose monitor, or a CGM, is a small sensor that pokes through the skin & tracks a person's glucose levels in real time.  It wirelessly transmits this data to a smartphone.  CGMs are primarily used by patients with diabetes since the tech can help alert users, their families & their doctors to emergencies.  The market opportunity could be significant for ABT, whose existing CGMs are already used by around 6M patients across 60 countries.  Around 38.4M people are living with diabetes in the US alone & offering a consumer-facing CGM brings the technology to an entirely new population.  One of its new systems, Libre Rio, is for patients with Type 2 diabetes who do not take insulin.  Its 2nd system, Lingo, is for consumers trying to improve their health & wellness.  Libre Rio is ABT's first over-the-counter offering for people with diabetes in the US, though other CGMs within its portfolio have been available without a prescription in other countries over the last decade.  Libre Rio is designed for Type 2 patients who usually manage their diabetes with lifestyle modifications.  The stock rose 52¢.

FDA approves two new Abbott over-the-counter continuous glucose monitors

Dow struggled to advance at the opening, but the bulls gave up & currently it is lower.  Investors are braced for a Federal Reserve policy decision & key inflation data in the week ahead.