NYSE Dow Jones finished today at:

[bigdog]

Markets in China and South Korea were closed for lunar new year celebrations.

https://www.usnews.com/news/busines...-with-asian-markets-closed-for-lunar-new-year

Stocks Stretch Winning Streak to 6 Days Despite Turbulence
Stocks rise for the sixth day in a row Friday even though they couldn't hang on to a bigger gain.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Stocks closed out their strongest week in five years Friday and have now recovered more than half of the losses they suffered in a plunge at the beginning of the month.

Investors got back to buying stocks almost as quickly as they started dumping them. The gain Friday was the sixth in a row for the Standard & Poor's 500 index. A combination of cheaper prices for stocks as well as solid company profits put investors back in a buying mood.

The S&P 500, which many index funds track, has risen almost 6 percent in its current streak. Investors haven't hesitated to buy the same types of stocks that did well before the market's recent slump, including technology companies and banks.

In a typical market downturn, investors might avoid stocks that have had huge run-ups out of fear they had gotten too expensive. Instead, investors are still betting on more strength in the economy and are buying companies that tend to do better in times of faster growth.

After an unusually long period of calm, stocks plunged at the start of February as investors worried about inflation and rising interest rates. The S&P 500 fell as much as 10 percent from its latest record high reached January 26. But investors weren't scared off for long.

"Rates started to stabilize and you got some better economic data, and earnings in general have been pretty good," said Sameer Samana, global equity and technical strategist for the Wells Fargo Investment Institute.

Samana said bond and credit markets showed that the fear wasn't spreading. Companies were still able to borrow at relatively low rates, which showed lenders weren't concerned the economy was weakening.

"A lot of people probably looked at stocks vs. credit and probably thought 'if credit's not feeling it, things must not be all that bad,'" he said.

The S&P 500 gained 1.02 points, or less than 0.1 percent, at 2,732.22. That includes a gain of 4.3 percent this week, its best since January 2013.

The Dow Jones industrial average rose 19.01 points, or 0.1 percent, to 25,219.38. The Nasdaq composite lost 16.96 points, or 0.2 percent, to 7,239.47. The Russell 2000 index of smaller company stocks climbed 6.35 points, or 0.4 percent, to 1,543.55.

Homebuilders rose after the Commerce Department reported that construction of new homes jumped 9.7 percent in January. That was the highest level since October 2016, and permits, a sign of future construction, also climbed. NVR gained $131.23, or 4.3 percent, to $3,208.23 while D.R. Horton rose 46 cents, or 1 percent, to $45.57.

Among health care companies, drugmaker AbbVie jumped $3.70, or 3.2 percent, to $118.60 and Johnson & Johnson rose $1.92, or 1.5 percent, to $133.15.

Friday's gains didn't come without some bumps. The Dow was up 232 points at about 12:30 p.m., shortly before Special Counsel Robert Mueller announced the indictment of 13 Russians and three Russian organizations in a plot to interfere in the 2016 U.S. Presidential election. Stocks gave up their gains after that and spent the afternoon meandering between small gains and losses.

The indictment says the Russians used social media propaganda, at times helping Trump and harming the prospects of Democrat Hillary Clinton. Facebook fell $2.60, or 1.4 percent, to $117.36 and Twitter fell 55 cents, or 1.6 percent, to $33.06

Samana, of Wells Fargo, said the recovery from the recent 10 percent plunge may not be a smooth one either.

"We see another year of solid returns" for stocks, he said. "It'll just come with these bouts where people worry about rates and inflation and the end of the cycle."

Among health care companies, Johnson & Johnson gained $2.14, or 1.6 percent, to $133.37 and AbbVie jumped $3.11, or 2.7 percent, to $118.01.

Now that stocks have stopped plunging, investors are focusing on the strong results companies posted in the fourth quarter.

"Analysts continue to underestimate the pace of global growth," Credit Suisse analyst Jonathan Golub wrote in a report. "As a result, more companies are beating/hitting expectations than in any quarter in 20 years."

Since the market hit its recent low point on Feb. 8, the S&P 500 technology index is up 8.5 percent and its financial company index is up 6.7 percent. This week alone, Apple has jumped 10 percent and chipmaker Applied Materials is up 14.5 percent. Amazon, one of the best performing S&P 500 companies this year, rose 8 percent for the week.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.87 percent from 2.91 percent.

U.S. crude oil picked up 34 cents to $61.68 a barrel in New York. Brent crude, used to price international oils, added 51 cents to $64.84 a barrel in London.

Natural gas rose 2 cents to $1.75 a gallon. Heating oil added 2 cents to $1.91 a gallon. Natural gas slipped 2 cents to $2.56 per 1,000 cubic feet.

Gold inched up 90 cents to $1,356.20 an ounce. Silver lost 8 cents to $16.71 an ounce. Copper stayed at $3.25 a pound.

The dollar edged up to 106.30 yen from 106.27 yen. The euro fell to $1.2413 from $1.2506.

The CAC 40 of France climbed 1.1 percent after a strong gain a day ago. Germany's DAX added 0.9 percent while the FTSE 100 in Britain gained 0.8 percent. In Japan, the Nikkei 225 index climbed 1.2 percent. Markets in China and South Korea were closed for lunar new year celebrations.

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[bigdog]

NYSE was closed Monday, February 20 George Washington's Birthday

REST of WORLD

https://www.usnews.com/news/busines...-move-higher-as-market-jitters-appear-to-ease

European Shares Drift Lower as Traders Take a Breather
European shares drifted lower Monday as investors paused for breath following a sizeable rally last week.

By The Associated Press

LONDON (AP) — European shares drifted lower Monday as investors paused for breath following a sizeable rally last week. Despite the move lower, there are few signs of the turmoil that gripped stock markets earlier this month. U.S. stock markets are closed for Presidents Day.

KEEPING SCORE: In Europe, Germany's DAX was down 0.3 percent at 12,412 while the FTSE 100 index of leading British shares fell 0.3 percent to 7,276. The CAC 40 in France was 0.2 percent lower at 5.269.

CALM DOMINATES: Earlier this month there were real concerns that global stock markets were poised for a sustained period of weakness. However, sentiment has recovered over the past week or so, with many traders adjusting to the altered economic environment.

ANALYST TAKE: "So far, global equity markets seem to be adjusting to the prospect of higher inflation, presumably on the basis that increases in corporate pricing power will be positive for earnings rather than of the cost-push kind that dents profit margins and result in a stagflationary economy," said Neil MacKinnon, global macro strategist at VTB Capital.

ASIA'S DAY: Earlier, Asian stocks performed strongly as they caught up with Friday's further advance, particularly on Wall Street. Japan's Nikkei 225 jumped 2 percent to 22,149.21. The Tokyo benchmark ended the day just 2.7 percent below where it started 2018, having recouped most of its losses during the recent global rout. South Korea's Kospi advanced 0.9 percent to 2,442.82. Australia's S&P/ASX 200 rose 0.6 percent to 5,941.60. Chinese markets were closed for Lunar New Year.

OIL: Benchmark U.S. crude rose 46 cents to $62.01 per barrel in electronic trading on the New York Mercantile Exchange while Brent crude, used to price international oils, was up 25 cents at $65.09 a barrel in London.

CURRENCIES: The euro was down 0.1 percent at $1.2397 while the dollar rose 0.2 percent to 106.60 yen.

 

[bigdog]

https://finance.yahoo.com/m/5df08ad4-5ff9-3d75-ac13-10be522127ce/ss_walmart's-plunge-sinks.html

Walmart's plunge sinks retailers, breaking streak for stocks

Alex Veiga, AP Business Writer
Associated Press February 21, 2018

The biggest drop in Walmart's stock in 30 years and losses in other sectors pulled U.S. indexes lower Tuesday, snapping a six-day winning streak.

The losses deepened in the last hour of trading into a broad sell-off that erased early gains led by technology companies.

Walmart plunged 10 percent after reporting weak online sales and disappointing earnings. Grocery store operators, retailers, health care companies and industrial stocks accounted for much of the market's slide.

"Investors have been lulled into a false sense that stock markets are not volatile," said Doug Cote, chief market strategist for Voya Investment Management. "Last week was one of the best weeks in years, and as we go back to normal volatility, you're going to see what you would expect: normal ups and downs."

The Standard & Poor's 500 index fell 15.96 points, or 0.6 percent, to 2,716.26. The Dow Jones industrial average slid 254.63 points, or 1 percent, to 24,964.75. The Nasdaq lost 5.16 points, or 0.1 percent, to 7,234.31. The Russell 2000 index of smaller-company stocks gave up 13.56 points, or 0.9 percent, to 1,529.99.

The S&P 500, a benchmark for many index funds, capped its strongest week in five years on Friday, recovering more than half of the losses it suffered in a plunge at the beginning of this month. Stocks began giving back some of those gains early Tuesday as trading reopened after a long holiday weekend and investors began sizing up company earnings while keeping an eye on the bond market.

The yield on the 10-year Treasury, which is used as a benchmark for mortgages and other loans, has been rising in recent months from a low of 2.04 percent in September. Higher bond yields indicate investors expect more risk of inflation, and they also can threaten stock prices by making bonds more appealing versus stocks.

"Some of the broader concerns on investors' minds right now are looking across to the bond market and seeing the 10-year Treasury starting to approach that 3 percent level," said Bill Northey, vice president at U.S. Bank Wealth Management.

Bond prices, which had been declining early Tuesday, ended up little changed. The yield on the 10-year Treasury held at 2.88.

Walmart posted the biggest loss in the Dow and S&P 500. The tumble represents the stock's worst single-day drop since January 1988. Investors were disappointed with the retail giant's fourth-quarter results, which missed Wall Street's expectations as the company wrestled with slower e-commerce sales during the busiest time of the year.

The stock shed $10.67, or 10.2 percent, to $94.11.

Several big retailers also fell, including Target, which slid $2.22, or 3 percent, to $72.86. Ross Stores dropped $2.19, or 2.7 percent, to $77.98.

Gap declined 5 percent after the clothing chain said the head of the Gap brand will leave the company. Jeff Kirwan, who has been with the company since 2004, had led the namesake brand since the end of 2014. The Gap said Kirwan had failed to achieve "the operational excellence and accelerated profit growth" that the company expected for the Gap brand. The stock lost $1.66 to $31.61.

Genuine Parts gave up 5.2 percent after the auto and industrial parts company gave a disappointing profit forecast for 2018. The stock fell $5.16 to $94.67.

Company deals offset some of the market slide.

NXP Semiconductor jumped 6 percent after Qualcomm raised its offer for the company to $127.50 a share, or $43.22 billion, from $110 a share. The move comes as Broadcom is trying to buy Qualcomm. Shares in NXP added $7.06 to $125.56. Qualcomm lost 86 cents, or 1.3 percent, to $63.99.

Traders also welcomed news that grocery store operator Albertsons agreed to buy more than 2,500 Rite Aid stores. Albertsons owns brands including Safeway. The deal will double the amount of drugstores it owns.

Last year, Rite Aid had agreed to sell almost 2,000 locations to Walgreens after a larger deal fell apart. Rite Aid's stock, which has shed more than half its value over the past year, rose 7 cents, or 3.3 percent, to $2.20.

Benchmark U.S. crude rose 22 cents to settle at $61.90 per barrel in New York. Brent crude, used to price international oils, shed 42 cents to close at $65.25 a barrel.

In other energy futures trading, heating oil added 2 cents to $1.93 a gallon. Wholesale gasoline was little changed at $1.75 a gallon. Natural gas rose 6 cents to $2.62 per 1,000 cubic feet.

Gold fell $25, or 1.8 percent, to $1,331.20 an ounce. Silver dropped 27 cents to $16.44 an ounce. Copper slid 6 cents to $3.19 a pound.

The dollar rose to 107.30 yen from 106.55 yen on Friday. The euro weakened to $1.2336 from $1.2408.

Major indexes in Europe ended mostly higher. Germany's DAX rose 0.8 percent, while France's CAC 40 gained 0.6 percent. Britain's FTSE 100 was flat.

Earlier in Asia, Japan's benchmark Nikkei 225 lost 1 percent, while Australia's S&P/ASX 200 inched lower. South Korea's Kospi lost 1.1 percent. Hong Kong's Hang Seng fell 0.8 percent. Stocks were mixed in Southeast Asia, while markets in mainland China were still closed for lunar new year holidays.

 

[bigdog]

https://finance.yahoo.com/m/bfdee59a-9be3-36bf-9623-e098edc0555d/ss_spike-in-bond-yields-upends.html

Spike in bond yields upends US stock market rally

ALEX VEIGA
Associated Press February 22, 2018

U.S. stocks closed broadly lower Wednesday, erasing an early gain, as investors reacted to a late-afternoon surge in bond yields.

Bond yields climbed to their highest level in four years after the Federal Reserve released minutes from its latest policy meeting. The minutes showed bullish sentiment among policymakers, confirming their intention to raise interest rates this year.

The yield on the 10-year Treasury note rose sharply after the minutes came out, touching 2.95 percent, its highest level since January 2014. Higher bond yields indicate investors expect more risk of inflation. They also can threaten stock prices by making bonds more appealing versus stocks.

"We're moving back to normal volatility, we're moving back toward normal interest rates, normal inflation," said Erik Davidson, chief investment officer for Wells Fargo Private Bank. "This is what normal looks like."

The Standard & Poor's 500 index fell 14.93 points, or 0.6 percent, to 2,701.33. The Dow Jones industrial average lost 166.97 points, or 0.7 percent, to 24,797.78. The blue chip average had been 300 points higher before the late-afternoon slide.

The Nasdaq gave up 16.08 points, or 0.2 percent, to 7,218.23. The Russell 2000 index of smaller-company stocks shed most of its gains from earlier in the day. It inched up 1.84 points, or 0.1 percent, to 1,531.84.

The major stock indexes started the day on pace to recoup some of the market's losses from a day earlier as investors sized up the latest crop of company earnings.

Technology companies, retailers and industrial stocks led the way for much of the day. The rally kicked into a higher gear shortly after the Fed minutes release.

Traders appeared to initially welcome the details in the meeting minutes, which show that a majority of Fed officials at the meeting believed that improving global economic prospects and the effects of recently passed tax cuts had raised the prospect for solid economic growth and for continued interest rate increases in 2018.

The Fed did not raise rates at the January meeting, which occurred before the February stock market plunge and turbulence.

Then bond yields began to climb, and the stock market rally began to evaporate. For a while, bank shares jumped in response to the rise in bond yields, which can benefit banks by allowing them to charge higher interest rates on loans. But soon banks stocks also slid into the red.

The yield on the 10-year Treasury, which is used as a benchmark for mortgages and other loans, has been rising in recent months from a recent low of 2.04 percent in September.

The pickup in yields has begun to make bonds more attractive as an alternative to stocks, which makes some investors uneasy.

Despite the broader market slide, investors bid up shares in some companies that reported better-than-expected earnings or outlooks Wednesday.

Advance Auto Parts vaulted 8.2 percent after reporting better earnings than analysts were expecting. The stock was the biggest gainer in the S&P 500, adding $8.65 to $114. Shares in rival auto parts retailer AutoZone also rose, climbing $6.26, or 0.9 percent, to $719.49.

La-Z-Boy also got a lift from its latest quarterly report card, rising $2.85, or 9.9 percent, to $31.75.

Walmart shares continued to slide Wednesday, a day after posting its biggest single-day drop in 30 years. The stock lost $2.59, or 2.8 percent, to $91.52.

Devon Energy slid 11.8 percent after the energy company disclosed a smaller-than-expected profit and 2018 forecast that raised concerns with analysts. The stock gave up $4.08 to $30.57.

Benchmark U.S. crude fell 11 cents to settle at $61.68 per barrel in New York. Brent crude, used to price international oils, rose 17 cents to close at $65.42 per barrel in London.

In other energy futures trading, heating oil was little changed at $1.93 a gallon. Wholesale gasoline added a penny to $1.76 a gallon. Natural gas rose 4 cents to $2.66 per 1,000 cubic feet.

The dollar rose to 107.78 yen from 107.30 yen on Tuesday. The euro weakened to $1.2300 from $1.2336.

Gold rose 90 cents to $1,332.10 an ounce. Silver added 18 cents to $16.62 an ounce. Copper gained 3 cents to $3.22 a pound.

Major indexes in Europe ended mostly higher. Germany's DAX slipped 0.1 percent, while France's CAC 40 rose 0.2 percent and Britain's FTSE 100 added 0.5 percent.

In Asia, Japan's Nikkei 225 index climbed 0.2 percent and Hong Kong's Hang Seng gained 1.8 percent. Australia's S&P ASX 200 edged 0.1 percent higher. The Kospi in South Korea added 0.6 percent. India's Sensex gained 0.3 percent. Shares in Southeast Asia were mixed.

 

[bigdog]

https://www.usnews.com/news/busines...ower-after-fed-report-renews-bond-yield-fears

Industrials Companies Drive US Stock Indexes Mostly Higher
U.S. stocks closed mostly higher Thursday after a late-afternoon wave of selling pared some of gains from the market's midday rally.

By ALEX VEIGA, AP Business Writer

U.S. stocks closed mostly higher Thursday after a late-afternoon wave of selling erased much of a midday rally.

Gains in industrial companies and other sectors outweighed losses in banks and health care stocks. Energy companies also rose after crude oil prices recovered from an early slide.

Bond yields declined after spiking to four-year highs a day earlier amid rekindled fears of higher inflation and interest rates.

"The yields easing back a little bit is probably reassuring people on a very short-term kind of basis," said Erik Wytenus, global investment specialist, J.P. Morgan Private Bank. "That big, nasty intraday reversal yesterday was probably a little bit excessive."

The Standard & Poor's 500 index rose 2.63 points, or 0.1 percent, to 2,703.96. The Dow Jones industrial average gained 164.70 points, or 0.7 percent, to 24,962.48. The 30-company average was up briefly by more than 350 points. The Dow and the S&P 500 snapped a two-day losing streak.

The Nasdaq had been up much of the day, but closed lower. It fell 8.14 points, or 0.1 percent, to 7,210.09. The Russell 2000 index of smaller-company stocks gave up 1.85 points, or 0.1 percent, to 1,529.99.

The stock indexes are on track to close lower for the week.

Bond prices rose. The yield on the 10-year Treasury fell to 2.92 percent from a day earlier, when it climbed to 2.95 percent, the highest level since January 2014. Wednesday's spike in bond yields came after the Federal Reserve's minutes from its January policy meeting showed bullish sentiment among policymakers, confirming their intention to raise interest rates this year.

Higher yields generally hurt stock prices by making bonds more appealing to investors. They also make it more expensive for people and companies to borrow money. Earlier this month, global stock markets, particularly those in the U.S., suffered big losses amid mounting concerns over the pace of inflation and Fed policy tightening.

"Volatility is back, and I actually would argue that it's a healthier state of affairs," Wytenus said. "The constant melt-up that we saw in 2017 is actually quite historically abnormal."

Shares in industrials companies posted solid gains. United Technologies rose after its CEO said management is looking into the possibility of splitting up the industrial conglomerate into three separate businesses. The stock rose $4.32, or 3.3 percent, to $133.58. Caterpillar also notched gains, climbing $3.63, or 2.3 percent, to $158.86.

Investors bid up shares in several companies that reported encouraging quarterly results or outlooks.

Chesapeake Energy was the biggest gainer in the S&P 500, vaulting 57 cents, or 21.7 percent, to $3.20. The company led an energy sector rally.

Avis Budget Group shares also got an earnings boost. The car rental company added $5.24, or 13.4 percent, to $44.20.

Roku slumped 17.7 percent after the video streaming device company's latest guidance disappointed analysts. The stock lost $9.05 to $42.05.

Pandora Media's first-quarter revenue guidance also fell short of Wall Street's forecasts. The music streaming company's shares tumbled 35 cents, or 7.2 percent, to $4.52.

Banks and other financial stocks lagged the most. Brighthouse Financial slid $2.27, or 4 percent, to $55.17.

Benchmark U.S. crude recovered from an early slide, adding $1.09, or 1.8 percent, to settle at $62.77 a barrel in New York. Brent crude, used to price international oils, rose 97 cents, or 1.5 percent, to close at $66.39 per barrel in London.

In other energy futures trading, heating oil gained 2 cents to $1.95 a gallon. Wholesale gasoline added a penny to $1.77 a gallon. Natural gas fell 3 cents to $2.63 per 1,000 cubic feet.

The dollar slid to 106.64 yen from 107.78 yen on Wednesday. The euro strengthened to $1.2329 from $1.2300.

Gold rose $60 cents to $1,332.70 an ounce. Silver dropped 3 cents to $16.59 an ounce. Copper added 3 cents to $3.24 a pound.

Major stock indexes in Europe closed mostly lower. Germany's DAX fell 0.1 percent, while the CAC 40 in France gained 0.1 percent. The FTSE 100 index of leading British shares declined 0.4 percent after figures showed the British economy did not grow as strongly as initially thought during 2017.

In Asia, Japan's benchmark Nikkei 225 index slumped 1.1 percent and South Korea's Kospi shed 0.6 percent. Hong Kong's Hang Seng lost 1.5 percent.

 

[bigdog]

https://www.usnews.com/news/busines...ian-stocks-advance-after-wall-street-rebounds

Broad Rally Helps Stocks End a Choppy Week Slightly Higher
Wall Street capped several days of choppy trading Friday with a broad rally that gave the stock market a modest gain for the week.

By ALEX VEIGA, AP Business Writer

Wall Street capped several days of choppy trading Friday with a broad rally that gave the stock market a modest gain for the week.

Technology companies, banks and health care stocks accounted for much of the market's gains. Energy companies also rose along with crude oil prices.

The rally came as bond yields pulled back for the second day in a row after reaching four-year highs earlier in the week. That spike on Wednesday, which sent the 10-year Treasury yield closing in on 3 percent, sent stocks sharply lower.

"There was a lot of concern about what happened if bond yields got above 3 percent, and that probably added to some of the jitters earlier this week," said Willie Delwiche, investment strategist at Baird. "Now you have a day when yields are moving away from that. At least for now, that probably lets equity traders breathe a sigh of relief and pushes stocks up a little."

The Standard & Poor's 500 index climbed 43.34 points, or 1.6 percent, to 2,747.30. The Dow Jones industrial average picked up 347.51 points, or 1.4 percent, to 25,309.99. The Nasdaq composite gained 127.30 points, or 1.8 percent, to 7,337.39. The Russell 2000 index of smaller-company stocks rose 19.20 points, or 1.3 percent, to 1,549.19.

The S&P 500, a key barometer for the stock market, had been on course to finish the week lower after losses on Tuesday snapped a six-day winning streak. All told, the S&P 500 eked out a 0.6 percent gain for the week. The Dow and Nasdaq finished with gains of 0.4 percent and 1.4 percent, respectively.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.87 percent from 2.92 percent. The yield declined for the second day in a row after climbing as high as 2.95 percent on Wednesday, the highest level since January 2014. That spike came after the Federal Reserve's minutes from its January policy meeting showed bullish sentiment among policymakers, confirming their intention to raise interest rates this year.

Earlier this month, global stock markets, particularly those in the U.S., suffered big losses amid mounting concerns over the pace of inflation and Fed policy tightening.

"We're at the mercy of people's changing opinions day-to-day on inflation and the Fed, but over the long run, we would expect the market to emerge higher," said Craig Callahan, president of ICON Advisers.

Hewlett Packard Enterprise led the gainers among technology stocks Friday.

The data center hardware company surged 10.5 percent after it reported a strong fiscal first quarter and raised its estimates for the rest of the year. It also said it would increase its quarterly dividend. The stock climbed $1.73 to $18.14.

Its former corporate sibling, printer and PC maker HP, also rose. The stock gained 74 cents, or 3.5 percent, to $22.13 after HP's first-quarter earnings and revenue surpassed analyst expectations. Its forecasts for the rest of the year were also better than excepted.

Banks and other financials companies also posted solid gains. Capital One Financial was among the big gainers, adding $2.37, or 2.5 percent, to $99.04.

Vertex Pharmaceuticals led the health care sector's winners. The stock climbed $8.31, or 5.3 percent, to $165.90.

Blue Buffalo Pet Products soared after packaged goods company General Mills agreed to buy it for $40 a share, or $8 billion. Blue Buffalo jumped $5.88, or 17.2 percent, to $40. General Mills lost $1.97, or 3.6 percent, to $52.98.

Benchmark U.S. crude picked up 78 cents, or 1.2 percent, to settle at $63.55 a barrel in New York. Brent crude, used to price international oils, gained 92 cents, or 1.4 percent, to close at $67.31 a barrel in London.

The pickup in oil prices helped lift energy sector stocks. Newfield Exploration led the pack, climbing $1.20, or 5.1 percent, to $24.66.

In other energy futures trading, heating oil gained 2 cents to $1.97 a gallon. Wholesale gasoline added 4 cents to $1.81 a gallon. Natural gas was little changed at $2.63 per 1,000 cubic feet.

The dollar rose to 106.75 yen from 106.64 yen. The euro dipped to $1.2295 from $1.2329.

Gold fell $2.40 to $1,330.30 an ounce. Silver dropped 10 cents to $16.48 an ounce. Copper slid 3 cents to $3.21 a pound.

Major stock indexes in Europe closed mostly higher Friday. Germany's DAX index rose 0.2 percent, while France's CAC 40 gained 0.2 percent. London's FTSE 100 slid 0.1 percent. In Asia, Tokyo's Nikkei 225 gained 0.7 percent, Hong Kong's Hang Seng added 1 percent and Seoul's Kospi rose 1.5 percent.

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[bigdog]

https://www.usnews.com/news/busines...an-stock-markets-gain-after-wall-street-rally

Stocks Power Higher Again as Treasury Yields Ease
Stocks climb again as markets around the world continue to claw back from a sharp tumble in early February.

By STAN CHOE, AP Business Writer

NEW YORK (AP) — Stocks jumped on Monday, with gains again accelerating in the last hour of trading, as markets around the world continue to claw back from a sharp tumble earlier this month.

The Standard & Poor's 500 powered to a third straight gain, and the index has erased about two-thirds of its 10 percent loss since setting a record a month ago.

Analysts said the key reason for Monday's gain was a drop in Treasury yields, which have been at the center of worries for stock investors in recent weeks, but some were still surprised by how much the stock market climbed.

The S&P 500 gained 32.30 points, or 1.2 percent, to 2,779.60, with telecoms and technology stocks leading the way. For the second straight day, the market turned higher as the day wore on. That's an encouraging sign to investors who see the last hour of trading as being dominated by the "smart money."

The Dow Jones industrial average rose 399.28, or 1.6 percent, to 25,709.27, and the Nasdaq composite gained 84.07, or 1.1 percent, to 7,421.46. All three indexes are back within 3.4 percent of their record highs.

"I think you can very confidently say the worst is over for now," said Randy Frederick, vice president of trading and derivatives at the Schwab Center for Financial Research. "The concern I have is that it's recovering too quickly. Today's rally has been very surprising."

Frederick said he saw few reasons for a big move higher in stocks on Monday, with no big-ticket earnings or economic reports on the calendar. If the market continues rising at this rate, it could hit record heights again in the next couple weeks. "And then we'd be vulnerable to another correction, so I'd prefer it to slow down a bit here," Frederick said.

What triggered the first correction, which is what traders call a 10 percent drop in stock prices, was fear that interest rates are set to march much higher, and quickly. Treasury yields have been climbing over the last month for a range of reasons, including higher expectations for inflation, a strengthening U.S. economy and the U.S. government's increased need to borrow.

Higher interest rates can hurt stock prices by making bonds look more attractive as investments, and Wall Street is split on how high they can climb. Most of Wall Street is anticipating a gradual increase, as the Federal Reserve moves short-term rates higher.

That's why an appearance this week by the Federal Reserve's chairman is so widely anticipated. Jerome Powell is scheduled to deliver his first testimony as chairman of the Fed to Congress, and he'll speak about monetary policy before the House of Representatives' financial services committee Tuesday morning. Investors will dissect it immediately for clues on how aggressive the Fed will be in raising interest rates to forestall inflation.

Ahead of the testimony, the yield on the 10-year Treasury note slipped to 2.86 percent from 2.87 percent late Friday. The two-year yield, which is influenced more by expectations of movement by the Fed, fell to 2.23 percent from 2.27 percent. The 30-year yield, which is influenced more by expectations for inflation, sank to 3.15 percent from 3.16 percent.

One driver for stocks in recent weeks is how impressive corporate profit reports have been.

Roughly 90 percent of S&P 500 companies have said how much they earned during the last three months of 2017, and three-quarters of them made more than analysts expected, according to S&P Global Market Intelligence. More important to investors is that 75 percent of companies reported more revenue than expected. Revenue growth is on pace to be the best since the summer of 2011, according to FactSet.

In Europe, France's CAC 40 rose 0.5 percent, and Germany's DAX gained 0.3 percent. The FTSE 100 climbed 0.6 percent. In Asia, Japan's Nikkei 225 index rose 1.2 percent, and the South Korean Kospi added 0.3 percent. China's Shanghai composite jumped 1.2 percent.

In the commodities markets, benchmark U.S. crude oil rose 36 cents to settle at $63.91 per barrel. Brent crude, the international standard, gained 19 cents to $67.50 a barrel.

Natural gas rose 1 cent to $2.64 per 1,000 cubic feet, heating oil added 2 cents to $1.99 per gallon and wholesale gasoline gained 2 cents to $1.83 per gallon.

Gold added $2.50 to settle at $1,332.80 per ounce, silver rose 7 cents to $16.55 per ounce and copper fell 1 cent to $3.22 per pound.

The dollar inched up to 106.91 Japanese yen from 106.75 yen late Friday. The euro rose to $1.2312 from $1.2295, and the British pound edged up to $1.3968 from $1.3967.

 

[bigdog]

https://www.usnews.com/news/busines...nds-hold-steady-ahead-of-fed-chiefs-testimony

Treasury Yields Rise, Stocks Slide Following Fed Testimony
Treasury yields rose Tuesday, and the S&P 500 slid to its first loss in four days after the head of the Federal Reserve said that he's feeling more optimistic about the economy.

By STAN CHOE, AP Business Writer

NEW YORK (AP) — Treasury yields rose Tuesday, and the Standard & Poor's 500 index slid to its first loss in four days after the head of the Federal Reserve said that he's feeling more optimistic about the economy.

The testimony by Fed Chairman Jerome Powell before Congress was highly anticipated, and he gave encouraging words about the economic data that have arrived in recent weeks. But some investors speculated they could mean the central bank will get more aggressive in raising interest rates than the market has prepared for.

"My personal outlook for the economy has strengthened since December," Powell said in response to a question about whether the recently passed tax cut and other moves by Congress have changed his outlook for how quickly the Fed will raise interest rates.

The immediate reaction in the bond market was to send Treasury yields higher, and the yield on the 10-year note climbed to 2.90 percent from 2.86 percent late Monday. It had been down earlier in the morning.

Higher interest rates can hurt stock prices by making bonds more attractive. Generally, when interest rates are rising, companies need to produce bigger profits just for their stock prices to stay flat.

The S&P 500 fell 35.32 points, or 1.3 percent, to 2,744.28. It had been bouncing between modest gains and losses early in the morning, but the losses accelerated after Powell began answering questions on Capitol Hill.

The Dow Jones industrial average lost 299.24, or 1.2 percent, to 25,410.03, and the Nasdaq composite fell 91.11, or 1.2 percent, to 7,330.35.

The Fed raised its key policy interest rate three times last year and has signaled that another three increases may be coming in 2018. Powell reaffirmed to the House Financial Services Committee that the central bank plans to raise interest rates gradually as the economy improves.

The market got spooked earlier this month when potential signs of inflation strengthened, which raised speculation that the Fed may speed up its timetable. Stocks around the world fell sharply as a result, with the S&P 500 losing 10 percent from its record high at one point.

If the Fed does raise rates four times this year, it could upset markets when many investors have been preparing for only three increases, said Rich Weiss, chief investment officer of multi-asset strategies at American Century Investments.

What may make things even more muddled is how long it's been since investors have had to contend with a market where inflation is a threat and interest rates are rising, Weiss said. The last time was before the 2008 financial crisis.

"You have a generation of brokers and advisers who have not experienced this side of the economic cycle," he said.

The rise in Treasury yields sent stocks that pay big dividends to some of the market's steepest losses. When bonds are paying more in interest, they can lure income investors away from dividend-paying stocks.

Real-estate investment trusts in the S&P 500, which are among the biggest dividend payers, lost 2.1 percent for the biggest loss among the 11 sectors that make up the index. Utilities fell 1.7 percent.

Comcast had one of the biggest losses in the S&P 500 after it launched a bid for European pay TV broadcaster Sky. The buyout offer is for 22.1 billion pounds ($29.5 billion), and Comcast's Class A shares lost $2.92, or 7.4 percent, to $36.66.

Shares of Walt Disney also fell because the Comcast bid could disrupt its takeover offer for 21st Century Fox. Disney lost $4.94, or 4.5 percent, to $104.87.

On the winning end was Macy's, which jumped to one of the biggest gains in the S&P 500 after reporting sales and profits that were comfortably ahead of expectations. The retail giant also gave a forecast for 2018 earnings that was higher than analysts expected.

Macy's rose 95 cents, or 3.5 percent, to $28.40.

In Europe, stock indexes were mixed with France's CAC 40 close to flat and Germany's DAX down 0.3 percent. The FTSE 100 in London was down 0.1 percent.

In Asia, Japan's Nikkei 225 jumped 1.1 percent, South Korea's Kospi dipped 0.1 percent and the Hang Seng in Hong Kong lost 0.7 percent.

In the commodities markets, benchmark U.S. crude fell 90 cents to settle at $63.01 per barrel. Brent crude, the international standard, dropped 87 cents to $66.63 per barrel.

Natural gas was nearly flat at $2.68 per 1,000 cubic feet, heating oil fell 2 cents to $1.96 per gallon and wholesale gasoline lost 2 cents to $1.80 per gallon.

Gold dropped $14.20 to $1,318.60 per ounce, silver lost 19 cents to $16.43 per ounce and copper fell 4 cents to $3.19 per pound.

The dollar rose to 107.42 Japanese yen from 106.91 yen late Monday. The euro dipped to $1.2236 from $1.2312, and the British pound fell to $1.3916 from $1.3968.

 

[bigdog]

https://www.usnews.com/news/busines...s-fall-after-us-fed-chief-says-hes-optimistic

Stocks Fall as S&P 500 Closes Out Cruelest Month in 2 Years
U.S. stocks sank again on Wednesday and cemented February as the worst month for the market in two years

By STAN CHOE, AP Business Writer

NEW YORK (AP) — U.S. stocks sank again on Wednesday and cemented February as the worst month for the market in two years.

Not only was the month's loss sharp, at 3.9 percent for the Standard & Poor's 500 index, it was also the first in a long time. S&P 500 index funds snapped a record-setting run where they had made money for 15 straight months, including dividends.

Some of Wednesday's drop was due to a slide in the price of oil, which sent energy stocks to the market's sharpest losses. The S&P 500 fell 30.45 points, or 1.1 percent, to 2,713.83, while the Dow Jones industrial average lost 380.83, or 1.5 percent, to 25,029.20 and the Nasdaq composite dropped 57.35, or 0.8 percent, to 7,273.01.

The dominant fear for the month was the threat of higher inflation and interest rates. Concerns got so high that the S&P 500 spiraled down 10 percent in just nine days at one point, before trimming some of its losses. The index had five losses of 1 percent or more in February, more than it did in all of last year.

Expect even more swings in coming weeks and months, said Brian Peery, portfolio manager at Hennessy Funds. Investors are trying to figure out how many times the Federal Reserve will raise interest rates this year in the face of a growing economy. Uncertainty is high given that markets are waiting to see how much Washington's recently passed tax cuts will push companies to spend on equipment and wages.

"We were without volatility for so long, but what's in motion tends to stay in motion," Peery said. "It's been a pretty tumultuous month."

The tumult started just as the month began, when a government report showed a jump in workers' wages that surprised economists. That triggered worries that higher inflation may be on the way and that the Federal Reserve would need to get more aggressive about raising rates as a result. Higher rates make bonds more attractive as investments and can divert buyers away from stocks.

The dizzying result marked a sharp turnaround from the market's blistering start to the year, when stocks jumped on expectations that corporate profits would keep rising and the global economy would keep strengthening. It was a continuation of the remarkably smooth rise that investors enjoyed in 2017.

On Wednesday, the yield on the 10-year Treasury fell to 2.86 percent from 2.90 percent late Tuesday.

The benchmark yield relinquished roughly all of its increase from the prior day, when comments from Fed Chairman Jerome Powell once again raised speculation of a more aggressive Fed. He told Congress that he's more optimistic about the economy, which led some investors to anticipate four rate increases for 2018, up from three last year.

Among the biggest losers on Wednesday in the S&P 500 was Lowe's, which reported weaker profit for the last quarter than analysts expected. The home-improvement retailer's stock dropped $6.20, or 6.5 percent, to $89.59.

Energy stocks in the S&P 500 lost 2.3 percent for the sharpest drop among the 11 sectors that make up the index. They were hurt by a sharp drop in the price of oil after a government report showed that the amount of oil in U.S. inventories rose more than analysts expected last week.

Benchmark U.S. crude lost $1.37 to settle at $61.64 per barrel. Brent crude, the international standard, fell 85 cents to $65.78 per barrel.

On the winning side was Booking Holdings, the company formerly known as Priceline. It jumped $129.03, or 6.8 percent, to $2,034.04 after it reported a bigger profit for the latest quarter than analysts expected, aided by stronger travel bookings.

Overseas stock markets were subdued. In Europe, France's CAC 40 fell 0.4 percent, and Germany's DAX lost 0.4 percent. The FTSE 100 in London was down 0.7 percent.

In Asia, Japan's Nikkei 225 tumbled 1.4 percent, South Korea's Kospi lost 1.2 percent and the Hang Seng in Hong Kong lost 1.4 percent.

The dollar dipped to 106.66 Japanese yen from 107.42 yen late Tuesday. The euro fell to $1.2203 from $1.2236, and the British pound slipped to $1.3771 from $1.3916.

In the commodities markets, natural gas sank 2 cents to $2.67 per 1,000 cubic feet, heating oil lost 5 cents to $1.92 per gallon and wholesale gasoline fell 5 cents to $1.76 per gallon.

Gold slipped 70 cents to $1,317.90 per ounce, silver lost 3 cents to $16.41 per ounce and copper dropped 5 cents to $3.13 per pound.

 

[bigdog]

The Dow Jones industrial average dropped 420.22 points, or 1.7 percent, to 24,608.98, and the Nasdaq composite fell 92.45, or 1.3 percent, to 7,180.56.

https://www.usnews.com/news/busines...mixed-as-china-recovers-from-wall-street-drag

Stocks Dive After Trump Promises Tariffs on Steel
U.S. stocks dove in another dizzying day of trading after President Donald Trump promised stiff tariffs on imported steel and aluminum.

By STAN CHOE, AP Business Writer

NEW YORK (AP) — U.S. stocks dove in another dizzying day of trading after President Donald Trump promised stiff tariffs on imported steel and aluminum. The move raised the threat of escalating retaliation by other countries and higher inflation. The Standard & Poor's 500 index erased nearly all of its gains for the year.

Indexes had been bouncing between modest gains and losses earlier in the day, until Trump told industry executives around midday that they'll "have protection for the first time in a long while" and that he's planning to impose tariffs of 25 percent on steel imports and 10 percent on aluminum imports next week.

"I don't know if this will cause a trade war, and obviously that's the fear," said Lamar Villere, portfolio manager at investment manager Villere & Co. "But this is exactly what candidate Trump said he would do: He said he would be very protectionist and America First."

The Standard & Poor's 500 index tumbled 36.16 points, or 1.3 percent, to 2,677.67. It's the third straight day where the index has lost at least 1 percent. It had only four such days last year. The S&P 500 is now up just 0.2 percent for the year after having its best January in 20 years.

The Dow Jones industrial average dropped 420.22 points, or 1.7 percent, to 24,608.98, and the Nasdaq composite fell 92.45, or 1.3 percent, to 7,180.56.

As a candidate, Trump campaigned on an "America First" trade policy, and a big fear for investors has been that increasingly nationalistic governments will impose barriers that hurt the global economy and trade, as well as profits for U.S. exporters. Apple, the most valuable U.S. company, got 63 percent of its sales from outside the United States in its latest fiscal year.

European Commission President Jean-Claude Juncker said the European Union will take retaliatory action if Trump goes ahead with his plan. He vowed that "the EU will react firmly and commensurately to defend our interests."

Shares of U.S. steelmakers surged on the tariff news. U.S. Steel rose $2.50, or 5.7 percent, to $46.01. But shares of companies that use lots of steel fell, as did exporters.

Industrial companies in the S&P 500 fell 1.9 percent for the sharpest loss among the 11 sectors that make up the index. Aerospace giant Boeing lost $12.52, or 3.5 percent, to $349.69.

Stocks of smaller companies, which tend to do more of their business in the United States and may not feel as much pain from a global trade war, held up better than the rest of the market. The Russell 2000 index of small-cap stocks fell 5.06, or 0.3 percent, to 1,507.39.

Bond prices rose as demand jumped for safer investments, which pushed yields lower. The yield on the 10-year Treasury note sank to 2.81 percent from 2.86 percent late Wednesday.

Stocks were higher earlier in the day after Federal Reserve Chairman Jerome Powell testified before Congress and appeared to calm one of the market's main worries: that the Fed may get more aggressive about raising interest rates to beat down inflation amid the strengthening job market and economy.

Powell told the Senate Finance Committee that he does not see inflation in workers' wages "at a point of acceleration." He also said, "I would expect that some continued strengthening in the labor market can take place without causing inflation."

Earlier in the week, Powell's testimony helped send Treasury yields jumping and stocks tumbling when he said that he's feeling more optimistic about the economy. Some traders took that as a signal that the Fed may raise rates more quickly than the market expected.

Worries about potentially higher rates and inflation have reintroduced markets to volatility following their unusually calm run in 2017 and early this year. The concerns at one point helped knock the S&P 500 down 10 percent from its record high, set in late January.

Patterson Companies fell to the biggest loss in the S&P 500 after it reported weaker earnings for the latest quarter than analysts expected and said that its chief financial officer was leaving. Shares of the company, which sells dental and animal health products, dropped $7.47, or 23.7 percent, to $24.11.

Oil prices continue to drop following a report on Wednesday that showed more crude supplies in inventories last week than analysts expected. Benchmark U.S. crude fell 65 cents to settle at $60.99 per barrel. Brent crude, the international standard, lost 90 cents to $63.83 a barrel.

Natural gas rose 3 cents to $2.70 per 1,000 cubic feet, heating oil fell 2 cents to $1.89 per gallon and wholesale gasoline slipped 3 cents to $1.90 per gallon

Gold dropped $12.70 to $1,305.20 an ounce, silver lost 13 cents to $16.28 per ounce and copper lost 1 cent to $3.12 per pound.

The dollar dipped to 106.24from 106.66 yen late Wednesday. The euro rose to $1.2255 from $1.2203, and the British pound slipped to $1.3768 from $1.3771.

France's CAC 40 fell 1.1 percent and Germany's DAX was down 2 percent. The FTSE 100 in London dropped 0.8 percent. In Asia, Japan's Nikkei 225 lost 1.6 percent and Hong Kong's Hang Seng rose 0.6 percent.

 

[bigdog]

https://www.usnews.com/news/busines...ks-skid-tracking-wall-st-loss-on-tariff-fears

S&P 500 Erases Early Plunge and Rises to Cap Frenetic Week
U.S. stocks went on another dizzying ride Friday after they clawed back from an early-morning plunge to send the Standard & Poor's 500 index to its first gain in four days.

By STAN CHOE, AP Business Writer

NEW YORK (AP) — U.S. stocks went on another dizzying ride Friday and worked their way back from an early-morning plunge to send the Standard & Poor's 500 index to its first gain in four days. It was just the latest swing in a frenetic week for markets around the world as investors recalibrated — again and again — how worried to be about a possible trade war and a more aggressive Federal Reserve.

When U.S. markets opened for trading, the S&P 500 lost as much as 1.1 percent to join a worldwide sell-off after President Donald Trump doubled down on "trade war" talk. He took to Twitter to defend his promise from Thursday to impose stiff tariffs on imports of steel and aluminum, saying that the United States is losing on trade with virtually every country and that "trade wars are good" and "easy to win."

Investors had a different impression. Markets tumbled from Asia to Europe on fears that escalating retaliation between countries could choke off trade and the global economy. The president of the European Union's governing body suggested possible tariffs on blue jeans and motorcycles.

The S&P 500 trimmed its loss as the day went on and was bouncing between gains and losses by the early afternoon. It accelerated in the last half hour of trading and ended at 2,691.25, up 13.58 points, or 0.5 percent. The Dow Jones industrial average fell 70.92, or 0.3 percent, to 24,538.06, and the Nasdaq composite rose 77.31, or 1.1 percent, to 7,257.87.

Stocks pared their losses as investors questioned how far Trump will end up going, said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management.

"I view nearly every one of Trump's actions through a negotiation lens," he said. "This was an anchor, an opening bid. ... I think the market senses some of that, and I would imagine that we will see some horse trading going on with what ultimately happens with these tariffs."

The S&P 500 still ended the week with a loss of 2 percent, its third decline that severe in the last five weeks. Last year, the worst weekly loss was just 1.4 percent.

If a trade war does indeed break out, it could threaten a key reason investors were optimistic about stocks coming into 2018: The global economy is finally strengthening in sync, which should lead to higher corporate profits.

Big U.S. companies are heavily reliant on global trade, and companies in the S&P 500 got 43 percent of their sales from outside the United States in 2016, according to S&P Dow Jones Indices. That means Apple and other big U.S. companies are dependent on customers not only in Peoria but also Paris and Peru.

Stocks of smaller U.S. companies, which tend to do more of their business at home, did much better than the rest of the market. The Russell 2000 index of small-cap stocks rose 25.78, or 1.7 percent, to 1,533.17.

The trade worries are piling onto a market that was already nervous. Concerns about the possibility of higher inflation and interest rates have rocked markets since the S&P 500 set its latest record high in late January.

Inflation has been low in the years following the Great Recession, but if it jumps higher, it could force the Federal Reserve to raise short-term rates more sharply than investors are expecting. That could easily upset markets, which had been enjoying a remarkably smooth ride last year.

The Fed's chairman, Jerome Powell, jolted markets on Tuesday, when he said that he's feeling more optimistic about the U.S. economy. Some investors took that as a signal that the Fed may get more aggressive, which sent stocks down and Treasury yields higher. Later in the week, though, Powell may have calmed some of the fears when he said that he does not see inflation in wages "at a point of acceleration."

Such a dance is typical when central banks are raising interest rates and "tightening" financial conditions, rather than easing, said Schutte.

"When central banks ease, the goal is shock and awe, or to use a football analogy, to throw the deep ball," he said. "When they hike, it's three yards and a cloud of dust. They want to advance the ball gradually."

The yield on the 10-year Treasury rose to 2.86 percent from 2.81 percent late Thursday.

The biggest loss in the S&P 500 came from Foot Locker, which plunged after it said sales trends were weaker last quarter than analysts expected. Shares dropped $5.84, or 12.7 percent, to $40.04.

McDonald's stock dropped on fears that its value menu isn't drumming up much in sales, and an analyst at RBC Capital Markets cut his expectations for the chain's sales in the United States. Its shares dropped $7.43, or 4.8 percent, to $148.27.

The losses follow up sharp drops in markets overseas. In Asia, Japan's Nikkei 225 plunged 2.5 percent, the Hang Seng in Hong Kong fell 1.5 percent and South Korea's Kospi dropped 1 percent.

In Europe, France's CAC 40 lost 2.4 percent, and Germany's DAX fell 2.3 percent. The FTSE 100 in London gave up 1.5 percent.

In the commodities markets, benchmark U.S. crude rose 26 cents to settle at $61.25 per barrel. Brent crude, the international standard, rose 54 cents to $64.37 a barrel.

Gold rose $18.20 to settle at $1,323.40 per ounce. Gold usually rises when investors are feeling more nervous about inflation and the economy. Silver climbed 19 cents to $16.47 per ounce, and copper added 2 cents to $3.12 per pound.

Natural gas was virtually flat at $2.70 per 1,000 cubic feet, heating oil slipped a cent to $1.88 per gallon and wholesale gasoline gained a penny to $1.90 per gallon.

The dollar fell to 105.54 Japanese yen from 106.24 yen late Thursday. The euro rose to $1.2331 from $1.2255, and the British pound rose to $1.3790 from $1.3768.

9869

 

[bigdog]

https://www.usnews.com/news/busines...ks-fall-as-markets-mull-china-growth-forecast

US Stocks Power Higher in Latest Lightning Shift for Markets
Stocks shook off morning losses on Monday and surged in the afternoon to send the Standard & Poor's 500 index to its best day in a week.

By STAN CHOE, AP Business Writer

NEW YORK (AP) — Stocks shook off morning losses on Monday and surged in the afternoon to send the Standard & Poor's 500 index to its best day in a week. It's the latest turn for a market suddenly prone to quick shifts not only day to day but also hour to hour, as investors question whether President Donald Trump will really risk a trade war.

The S&P 500 lost as much as 0.6 percent shortly after trading began, only to finish the day 1.1 percent higher after rising 29.69 points to 2,720.94. It's reminiscent of what happened Friday, when stocks reversed course on speculation that Trump was only making an opening bid when he promised to impose stiff tariffs on imported steel and aluminum, rather than a final offer.

The Dow Jones industrial average jumped 336.70, or 1.4 percent, to 24,874.76, and the Nasdaq composite gained 72.84, or 1 percent, to 7,330.70. Both came back from early-morning losses.

Trump took to Twitter again on Monday to defend the tariffs, which have riled trading partners around the world and already sparked talk of retaliation to heighten the worries about a possible trade war. He highlighted trade deficits with Canada and Mexico, and he said tariffs "will only come off if" a new free-trade agreement between the three countries is signed.

Later in the day, House Speaker Paul Ryan said that he is "extremely worried" about the consequences of a global trade war and urged the White House "to not advance with this plan," according to a statement issued by his office.

"It's incredibly difficult to try to understand the whims of this current administration and to try to make forecasts," said Emily Roland, head of capital markets research for John Hancock Investments. If a trade war does occur, it would hurt the global economy and the healthy profit growth that companies have been producing, two of the big drivers for the market.

"But right now, we think the impact should continue to be modest, as long as it's all talk and no action," she said.

Boeing offered a good example of how quickly the market shifted. The aerospace giant got the majority of its revenue from outside the United States last year, so it would be hurt if countries put up more barriers to global trade. Boeing was down as much as 2.3 percent in the morning before ending the day up 2.3 percent.

From its low point of the day to its high, the S&P 500 index carried investors through a swing of 1.9 percentage points. It's the fifth straight day with a gap of more than 1.5 percentage points, as trading has become much more wild since the market's placid, record-setting run from 2017 into January. During that period, the typical day saw the S&P 500 drift just 0.5 percentage points from its low point to high.

The biggest gain in the S&P 500 came from XL Group, which surged after AXA said that it will acquire the insurance and reinsurance company for $15.3 billion. Investors will get $57.60 per XL Group share, and XL Group stock surged $12.62, or 29.1 percent, to $55.92.

In overseas stock markets, Europe was mostly higher, with Italy an exception after elections there saw no single party emerge with a majority in Parliament. That raises uncertainty about how closely Italy will work with the rest of the European Union.

France's CAC 40 rose 0.6 percent, Germany's DAX gained 1.5 percent and the FTSE 100 was up 0.7 percent in London.

In Asia, Japan's Nikkei 225 fell 0.7 percent, South Korea's Kospi dropped 1.1 percent and the Hang Seng in Hong Kong lost 2.3 percent.

Besides tariffs, investors are also keying in on the upcoming U.S. jobs report that's looming at the end of the week.

What first jolted the stock market from its peaceful rise to records was last month's jobs report, which raised the specter of higher inflation. If wages continue to accelerate, investors would likely see it as more evidence that the Federal Reserve will raise interest rates higher and faster than expected, which could further upset markets.

As a demonstration of how nervous investors are, John Hancock's Roland pointed to Fed Chairman Jerome Powell's testimony before Congress last week, where he said the economy is improving.

"That first day, he didn't say anything he hadn't said before, and the market was so volatile," Roland said.

The yield on the 10-year Treasury rose to 2.88 percent on Monday from 2.87 percent late Friday.

In the commodities markets, benchmark U.S. crude rose $1.32 to settle at $62.57 per barrel. Brent crude, the international standard, rose $1.17, or 1.8 percent, to $65.54 a barrel.

Gold fell $3.50 to settle at $1,319.90 per ounce, silver lost 5 cents to $16.41 per ounce and copper was close to flat at $3.13 per pound.

Natural gas added a penny to $2.70 per 1,000 cubic feet, heating oil rose 2 cents to $1.90 per gallon and wholesale gasoline climbed 3 cents to $1.93 per gallon.

The dollar rose to 106.20 Japanese yen from 105.54 yen late Friday. The euro dipped to $1.2327 from $1.2331, and the British pound climbed to $1.3833 from $1.3790.

 

[bigdog]

https://www.usnews.com/news/busines...s-surge-despite-trade-tensions-after-us-gains

Stocks Edge Higher as Materials Firms and Retailers Rise
With tariff and trade concerns still in focus, stocks finish mostly higher Tuesday after a wobbly day of trading.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stocks meandered but finished mostly higher Tuesday as retailers and industrial companies rose. A jump in metals prices helped mining and materials companies. Asian markets jumped after the North Korean government said it was open to talks with the U.S. about ending its nuclear program.

Stocks have edged higher over the last three days, but they've frequently bounced up and down as investors grappled with the Trump administration's stance on trade and whether the proposed tariffs on steel and aluminum imports will push inflation higher in the U.S. and lead to retaliation by other countries that would hurt economic growth and corporate profits.

Kristina Hooper, chief global markets strategist for Invesco, said Wall Street is having trouble deciding if the tariffs are more of a bargaining chip in trade negotiations, as President Donald Trump has suggested at times in the last few days, or if they are a goal on their own.

"When it seemed as though it was just rhetoric (Monday), markets relaxed," she said. "Today, I think concerns have grown that maybe this isn't just a bargaining tactic." She said Republicans in Congress don't seem to be treating the tariffs as a bargaining move: House Speaker Paul Ryan spoke up against the proposed tariffs Tuesday and called for a "more surgical approach" that might cause less backlash.

The Standard & Poor's 500 index rose 7.18 points, or 0.3 percent, to 2,728.12. The Dow Jones industrial average edged up 9.36 points to 24,884.12. It rose as much as 120 points early on and later fell as much as 166 points before recovering. The Nasdaq composite jumped 41.30 points, or 0.6 percent, to 7,372.01. The Russell 2000 index of smaller-company stocks climbed 16.16 points, or 1 percent, to 1,562.20.

Stocks fell 3.7 percent during a three-day losing streak last week after Trump announced his tariff plans. Other countries objected and the European Union announced plans to put tariffs on some U.S.-made goods including bourbon and motorcycles. Companies that make most of their sales overseas have fared the worst while U.S.-focused companies have regained their losses from that three-day stretch.

Asian markets climbed after North Korea said it is willing to start talks with the U.S. on denuclearization. It also said it would stop nuclear and missile tests during those discussions. The Kospi in Seoul jumped 1.5 percent while Tokyo's Nikkei 225 rose 1.8 percent. Hong Kong's Hang Seng index climbed 2.1 percent.

While retailers including Amazon, Best Buy and Lowe's gained ground, Target lost $3.35, or 4.5 percent, to $71.79 after it reported that costs associated with overhauling its stores and investing in its website affected its earnings and forecasts for the current year. Target also said it is raising minimum starting pay for workers for the second time in less than a year.

Qualcomm fell and Broadcom rose after Bloomberg News reported that Broadcom is on track to get more leverage in its effort to buy Qualcomm, which wants Broadcom to make a richer offer. Bloomberg reported that so far, directors backed by Broadcom are on pace to win six seats on Qualcomm's board. Qualcomm's current board opposes Broadcom's $117 billion bid for the company and says the price is too low, while a board supported by Broadcom would likely accept the offer instead.

Qualcomm gave up $1.87, or 2.9 percent, to $62.14 and Broadcom added $3.98, or 1.6 percent, to $250.96. Both stocks fell Monday after The Committee for Foreign Investment in the U.S. said it will look into the deal.

After an early loss, Nordstrom rose 59 cents, or 1.1 percent, to $52.49 after the department store rejected an offer from the Nordstrom family to take it private, saying the price of $50 a share was too low. The family group includes co-presidents Blake, Peter and Erik Nordstrom. They and other family members own 30 percent of Nordstrom's stock.

Metals prices ended higher, boosting mining stocks. Gold rose $15.30, or 1.2 percent, to $1,335.20 an ounce. Silver climbed 37 cents, or 2.3 percent, to $16.78 an ounce. Copper added 3 cents to $3.16 a pound. Gold and copper mining company Freeport-McMoRan rose 51 cents, or 2.8 percent, to $18.70.

Benchmark U.S. crude added 3 cents to $62.60 a barrel in New York. Brent crude, used to price international oils, rose 25 cents to $65.79 a barrel in London.

Wholesale gasoline stayed at $1.93 a gallon. Heating oil rose 1 cent to $1.90 a gallon. Natural gas gained 5 cents to $2.75 per 1,000 cubic feet.

Bond prices edged higher. The yield on the 10-year Treasury note fell to 2.87 percent from 2.88 percent.

Germany's DAX rose 0.2 percent and London's FTSE 100 gained 0.4 percent. France's CAC 40 added 0.1 percent.

The dollar inched up to 106.21 yen from 106.20 yen. The euro rose to $1.2405 from $1.2327.

 

[bigdog]

https://www.usnews.com/news/busines...ks-decline-as-investors-watch-us-tariff-moves

Stocks Wobble as Trump's Top Economic Adviser Departs
After sharp losses early in the day, stocks finish mixed as investors seek more information about the Trump administration's stance on trade.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — "What does it mean for trade?" That question continued to guide Wall Street Wednesday, leading stocks to a mixed finish after President Donald Trump's top economic adviser resigned after opposing the administration's planned tariffs on imports of steel and aluminum.

Stocks fell in the morning as investors reacted to the departure of Gary Cohn, a former Goldman Sachs executive who was seen as a proponent of free trade. The losses deepened after Trump suggested on Twitter that the U.S. may impose penalties on China as part of intellectual property disputes. The Dow Jones industrial average fell as much as 349 points.

Cohn, the director of the National Economic Council, was known to disagree with the tariff plan, which has also drawn criticism from Republicans in Congress as well as from much of corporate America.

"He was seen as a key proponent of free trade to balance some of the other more protectionist-type advisers in the administration," said Keith Parker, U.S. Equity Strategist for UBS. Cohn was also considered one of the architects of last year's corporate tax cut.

The market bounced back late in the afternoon after the White House said some countries, including Canada and Mexico, might be granted exemptions to the tariffs. That suggested a lighter touch that won't affect the global economy and corporate profits as much as a broader tariff would, and wouldn't result in as much retaliation from other countries.

Industrial companies like Caterpillar and Boeing whipsawed on the news. Technology and health care companies ended higher, while energy companies fell with oil prices.

The Standard & Poor's 500 index fell as much as 1 percent during the day but finished with a loss of just 1.32 points, less than 0.1 percent, at 2,726.80. The Dow Jones industrial average declined 82.76 points, or 0.3 percent, to 24,801.36.

The Nasdaq composite gained 24.64 points, or 0.3 percent, to 7,396.65. The Russell 2000 index of smaller-company stocks added 12.33 points, or 0.8 percent, to 1,574.53. It's fared better than the S&P and Dow over the last week as the companies on that index are far more U.S.-focused and would stand to lose less from a flare-up in global trade tensions.

In response to the planned steel and aluminum tariffs, the European Union has proposed tariffs on U.S. exports including motorcycles and bourbon. Jack Daniel's maker Brown-Forman sank after CEO Paul Varga said his company "could be an unfortunate and unintended victim" of more hostile trade. Varga said the company has been selling more lower-priced liquors in Europe, a strategy that leaves it more vulnerable to higher costs.

The company also forecast a smaller-than-expected annual profit and its stock dropped $3.15, or 5.6 percent, to $52.89. Motorcycle maker Harley-Davidson slid 43 cents, or 1 percent, to $43.90.

Discount retailer Dollar Tree's fourth quarter results disappointed investors, and so did its forecasts for the current year. It tumbled $15.11, or 14.5 percent, to $89.25. Competitor Ross Stores lost $5.11, or 6.3 percent, to $75.40 following its report.

Benchmark U.S. crude dropped $1.45, or 2.3 percent, to $61.15 a barrel in New York after the Energy Department reported that U.S. oil production rose last week. Brent crude, used to price international oils, fell $1.45, or 2.2 percent, to $64.34 a barrel in London. Exxon Mobil tumbled $1.92, or 2.5 percent, to $74.26 and Hess lost $2, or 4.1 percent, to $46.48.

On Twitter, Trump said the government is "acting swiftly on intellectual property theft." The U.S. Trade Representative is investigating whether Chinese intellectual property rules are "unreasonable or discriminatory" to American business.

Parker said the tariffs could reduce corporate profits by about $10 billion, far less than the boost corporations will get from the tax cut that was signed into law in December. However he said steps against China, and retaliation by the Chinese government, could raise the cost of items including phones, technology goods, and clothing.

"The risk is that given China policy and actions that there could be something specific placed on Chinese goods, which would potentially lead to a retaliatory action," he said.

While most investors interpreted the departure of Cohn as a loss, Parker said his resignation might keep some of the administration's protectionist plans in check when combined with criticism from Republicans in Congress and the generally negative stock market reaction.

In other energy trading, wholesale gasoline lost 2 cents to $1.91 a gallon. Heating oil declined 3 cents to $1.87 a gallon. Natural gas rose 3 cents to $2.78 per 1,000 cubic feet.

Bond prices edged higher. The yield on the 10-year Treasury note fell to 2.88 percent from 2.89 percent.

Metals prices gave back some of Tuesday's gains. Gold fell $7.60 to $1,327.60 an ounce. Silver slid 29 cents, or 1.7 percent, to $16.49 an ounce. Copper lost 2 cents to $3.14 a pound.

The dollar dipped to 106.07 yen from 106.21 yen. The euro edged down to $1.2403 from $1.2405.

Germany's DAX rose 1.1 percent and Britain's FTSE 100 gained 0.2 percent while the French CAC 40 added 0.3 percent. Asian markets started flat but losses widened in the afternoon. The Japanese Nikkei 225 dropped 0.8 percent while South Korea's Kospi fell 0.4 percent. The Hang Seng of Hong Kong sank 1 percent.

 

[bigdog]

https://www.usnews.com/news/busines...-in-asia-after-china-reports-surge-in-exports

Stocks Rise as Trump Signs Tariffs, but Trade Fears Ease
U.S. stocks rise Thursday as President Donald Trump's proposed tariffs on aluminum and steel imports appear to be less harsh than Wall Street had feared.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — After hours of indecisive trading, stocks finished with modest gains Thursday after President Donald Trump formally ordered tariffs on steel and aluminum imports with the terms were less harsh than investors had feared.

Stocks rallied following reports that Canada and Mexico will be exempted indefinitely from the tariffs and that other countries will be invited to negotiate for exemptions as well.

Congressional Republicans and business leaders oppose the tariffs and have pushed for the administration to take a more measured approach that would invite less backlash from other countries.

"The president's tone was far more pragmatic," said Quincy Krosby, chief market strategist at Prudential Financial. "This certainly is not the strict tariff proposal that the president had suggested in the past couple of weeks."

Health care companies rose after pharmacy benefits manager Express Scripts accepted a $52 billion offer from health insurer Cigna. Technology companies also moved higher, but energy companies slipped along with oil prices.

The Standard & Poor's 500 index climbed 12.17 points, or 0.4 percent, to 2,738.97. The Dow Jones industrial average rose 93.85 points, or 0.4 percent, to 24,895.21. The Nasdaq composite rose for the fifth day in a row, gaining 31.30 points, or 0.4 percent, to 7,427.95.

The Russell 2000 index of smaller-company stocks dipped 2.57 points, or 0.2 percent, to 1,571.97. The index had jumped 4.5 percent over the previous four days as discussion about the proposed tariffs prompted investors to buy U.S.-focused companies and sell multinational firms.

Friday could prove to be another dramatic day on Wall Street as investors review the government's February jobs report. Stocks tumbled after the January report showed unexpectedly strong growth in wages, which set off worries about inflation.

The insurer Cigna will spend about $52 billion to acquire the nation's biggest pharmacy benefit manager, Express Scripts, the latest in a string of proposed deals as health care's bill payers attempt to get a grip on rising costs. Express Scripts jumped $6.30, or 8.6 percent, to $79.72 while Cigna lost $22.25, or 11.5 percent, to $172.

Pharmacy benefit managers run drug plans for insurers and employer-based plans. Like health insurers, they have struggled to corral spiraling costs, so in the last few years several big health insurers have created their own pharmacy benefits management businesses or bough them. And late last year, drugstore chain and pharmacy benefits manager CVS agreed to buy insurer Aetna for $69 billion.

Grocery store Kroger posted a bigger fourth-quarter profit and said its digital sales almost doubled in the past year, but its profit forecast for the current year disappointed investors. Kroger expects to earn between $1.95 and $2.15 a share for the year, while FactSet says analysts expected a profit of $2.15 per share on average. The stock fell $3.25, or 12.4 percent, to $22.98.

Newspaper publisher Tronc plunged $4.77, or 24.1 percent, to $15.05 after its quarterly profit fell far short of Wall Street's forecasts.

Benchmark U.S. crude fell $1.03, or 1.7 percent, to $60.12 a barrel in New York. Brent crude, used to price international oils, lost 73 cents, or 1.1 percent, to $63.61 a barrel in London. That led to more losses for energy companies.

Investors expect February's jobs report will show another month of strong hiring. According to FactSet, they expect to see that hourly wages grew 2.8 percent. That's similar to last month's report, which caught investors by surprise. Wall Street feared the stronger wage gains mean inflation is picking up and that interest rates will start to rise more rapidly, slowing the economy.

That helped touch off a nine-day, 10 percent plunge for the S&P 500, which has yet to fully recover.

Friday is the ninth anniversary of the current bull market. March 9, 2009, was the lowest point for the S&P 500 after the 2008-09 financial crisis that touched off the Great Recession. The index has roughly quadrupled since then and it's about five months away from becoming the longest-lived bull market since World War II.

Bond prices edged higher. The yield on the 10-year Treasury note declined to 2.85 percent from 2.88 percent. Banks traded lower, because lower yields mean they can't make as much money from lending.

The CAC 40 in France added 1.3 percent and the DAX in Germany rose 0.9 percent. In Britain the FTSE 100 gained 0.6 percent. That came after the European Central Bank hinted that it is closer to exiting its extraordinary monetary stimulus effort.

The Hang Seng in Hong Kong jumped 1.5 percent while Japan's Nikkei 225 index edged 0.1 percent higher. The South Korean Kospi gained 1.3 percent.

In other energy trading, wholesale gasoline declined 4 cents to $1.87 a gallon. Heating oil dipped 2 cents to $1.86 a gallon. Natural gas slid 2 cents to $2.76 per 1,000 cubic feet.

Gold lost $5.90 to $1,321.70 an ounce. Silver added 1 cent to $16.50 an ounce. Copper fell 6 cents to $3.08 a pound.

The dollar inched up to 106.24 yen from 106.07 yen. The euro fell to $1.2306 from $1.2403.

 

[bigdog]

https://www.usnews.com/news/busines...es-rise-as-trade-fears-on-trumps-tariffs-ease

US Stocks Soar on Strong Jobs Report; Inflation Fears Ease
On the ninth anniversary of the bull market, Wall Street gets just what it wanted from the latest jobs report, sending stocks and bond yields moved sharply higher.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Wall Street got exactly what it wanted from Friday's jobs report: solid hiring, moderate wage growth and continued low unemployment. Investors sent stocks sharply higher, particularly their recent favorites, technology companies.

U.S. employers added 313,000 jobs in February, more than forecast, and wages didn't rise as much as investors had feared. The Labor Department also said January's spike in wages was a bit smaller than it originally thought. It made for a happy ninth anniversary for the current bull market.

A month earlier, a jump in wages got investors worried about inflation and set off a stock market swoon, giving the benchmark S&P 500 index its first 10 percent decline in two years.

"I think the fears of wages getting out of control in this point in the cycle ... were squashed," said Katie Nixon, chief investment officer for Northern Trust Wealth Management.

Bond yields also moved solidly higher as investors anticipated that the solid jobs survey portends more steady growth in the U.S. economy.

The Nasdaq composite regained the last of its February losses and closed at an all-time high. Banks also rose as interest rates increased, and industrial and health care and basic materials companies also climbed. Those sectors tend to do better when the economy is growing quickly.

The S&P 500 index climbed 47.60 points, or 1.7 percent, to 2,786.57. The Dow Jones industrial average rose 440.53 points, or 1.8 percent, to 25,335.74. The Nasdaq composite jumped 132.86 points, or 1.8 percent, to 7,560.81. The Russell 2000 index of smaller-company stocks picked up 25.18 points, or 1.6 percent, to 1,597.14.

Apple rose $3.04, or 1.7 percent, to $179.98 and Microsoft jumped $2.11, or 2.2 percent, to $96.54. Both finished at record highs. Technology companies have led the market's rally since early 2017, and they have led the recovery from its recent lows as well.

The S&P 500 is still 3 percent beneath its latest record high close, which came on Jan. 26. None of the other major S&P sectors have recovered all of their February losses, as technology has.

Bond prices dropped. The yield on the 10-year Treasury note rose to 2.90 percent from 2.85 percent. Banks advanced, but high-dividend stocks like utilities and phone companies fell. Those stocks are often compared to bonds and they tend to fall when yields move higher, as higher yields make them less appealing to investors seeking income.

Stocks initially declined last week after President Donald Trump said he would place tariffs on imported steel and aluminum. They've recovered their losses after he granted exemptions to Canada, Mexico, and potentially to other countries.

Nixon said the administration appears to be setting itself up to take a harder line in China. While China isn't a major exporter of steel to the U.S., trade disputes between the two countries aren't uncommon and the government is currently investigating China's treatment of intellectual property held by U.S. companies.

"Clearly the target here is China and how that unfolds will be important for markets," Nixon said. "The collateral damage could be relatively wide unless it's done carefully, and so far the process has not been very careful."

U.S. and South Korean officials said Trump might meet with North Korean leader Kim Jong Un by May to negotiate a potential end to Pyongyang's nuclear weapons program. The news helped send South Korea's Kospi up 1.1 percent. Other Asian indexes also rose. Japan's benchmark Nikkei 225 gained 0.5 percent and. Hong Kong's Hang Seng also rose 1.1 percent.

The White House later said the meeting won't happen unless North Korea takes "concrete steps" to match promises it has made.

Netflix rose $14.44, or 4.6 percent, to $331.44 after the New York Times reported that the streaming service is negotiating with Barack Obama to have the former president and his wife Michelle produce shows. The two sides haven't confirmed that they are in talks. GBH Insights analyst Daniel Ives said a deal with the Obamas would be "another major win for Netflix" as it tries to launch more and more original shows.

Toymakers fell following news reports that Toys R Us is getting ready to liquidate its U.S. operations. The chain, which filed for bankruptcy protection, has been unable to find a buyer or restructure its debt. Despite its struggles, it's still a major retailer of toys. Hasbro dropped $1.92, or 2.1 percent, to $91.46 while Mattel sank $1.13, or 7.1 percent, to $14.84.

Energy companies climbed as benchmark U.S. crude added $1.92 or 3 percent, to $62.04 a barrel in New York, while Brent crude, used to price international oils, rose $1.88, or 3 percent, to $65.49 a barrel in London.

Elsewhere, wholesale gasoline added 4 cents to $1.90 a gallon. Heating oil rose 3 cents to $1.89 a gallon. Natural gas lost 4 cents to $2.73 per 1,000 cubic feet.

In Europe, France's CAC 40 rose 0.4 percent while Germany's DAX fell 0.1 percent. The FTSE 100 in Britain rose 0.3 percent.

Gold rose $2.30 to $1,324 an ounce. Silver added 11 cents to $16.61 an ounce. Copper jumped 6 cents, or 1.9 percent, to $3.14 a pound.

The dollar rose to 106.77 yen from 106.24 yen. The euro rose to $1.2313 from $1.2306.

0586

 

[bigdog]

https://www.usnews.com/news/busines...-rise-after-wall-street-gains-on-jobs-numbers

Tech Gains but Industrials Slide, Leaving Indexes Mixed
Technology companies continue to rally Monday while industrial companies slump, leaving stock indexes mixed at the close of trading.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stocks were split Monday as technology companies continued to climb, but Boeing and other industrial companies gave back some of the ground they won on Friday.

Companies like Apple and Alphabet, Google's parent company, and chipmakers including Micron Technology have led the market's recovery in recent weeks. Retailers including Amazon and Starbucks also made headway. The market was coming off its biggest gain in a month following the February jobs report, which showed strong hiring and moderate growth in wages.

Inflation has been the market's dominant concern over the last six weeks, and two more measuring sticks of inflation will be reported this week as the Labor Department discloses data on consumer prices Tuesday morning and producer prices on Wednesday. Prices paid by consumers jumped in January and so did producer prices, which measure the cost of goods before they reach the consumer.

The Federal Reserve is gradually raising interest rates to keep inflation in check, and it expects to boost rates at least three times this year. JJ Kinahan, chief market strategist for TD Ameritrade, said investors are looking at a lot of data but are really asking one question.

"If you think about the selloffs that we've had, they've all been about 'are we going to get a fourth rate hike or aren't we?'" he said.

The S&P 500 index fell 3.55 points, or 0.1 percent, to 2,783.02. The Dow Jones industrial average declined 157.13 points, or 0.6 percent, to 25,178.61. Almost all of that loss came from three industrial stocks: Boeing, Caterpillar and United Technologies.

The Nasdaq composite finished at another record high after it added 27.51 points, or 0.4 percent, to 7,588.32. The Russell 2000 index of smaller-company stocks rose 3.91 points, or 0.2 percent, to 1,601.06.

Most of the stocks on the New York Stock Exchange ended the day higher.

Optical communications company Oclaro surged after it agreed to be bought by optical networking company Lumentum Holdings. The deal values Oclaro at $9.99 a share, or $1.69 billion, and its stock gained $2.16, or 27.5 percent, to $10.01. Lumentum also rose $3.03, or 4.4 percent, to $72.

Late Friday the Wall Street Journal reported that Intel might try to buy rival Broadcom. Broadcom is trying to buy a third chipmaker, Qualcomm, for $117 billion, and the Journal said that if that deal appears to be moving forward, Intel will consider responses that could include an attempt to buy Broadcom. It could also attempt a smaller deal.

Broadcom jumped $9.06, or 3.6 percent, to $262.84 while Intel fell 67 cents, or 1.3 percent, to $51.52. Qualcomm gave up 22 cents to $62.81.

Industrial companies like aerospace and defense firms and machinery makers lost about half of what they gained during their rally Friday. Boeing shed $10.33, or 2.9 percent, to $344.19 and Lockheed Martin lost $7.39, or 2.2 percent, to $333.10. Construction equipment maker Caterpillar dipped $3.75, or 2.4 percent, to $154.50.

Industrial companies have bounced around since President Donald Trump said he would order tariffs on imported steel and aluminum. That will mean higher costs for companies that use those metals to make machinery, and their sales could be hurt if other companies respond by placing tariffs on goods made in the U.S.

The February jobs report, which came out on Friday, eased investors' minds and sent stocks jumping. The market had tumbled in early February following the January jobs report, which showed a surprise spike in hourly wages. Wall Street worried that that might be the start of faster inflation, which would lead the Federal Reserve to raise interest rates more rapidly. Higher rates slow down economic growth.

Goldman Sachs said David Solomon will become its sole president and chief operating officer, clearing the way for Solomon to become the firm's next CEO. Solomon and Harvey Schwartz had shared both job titles, but the company says Schwartz will retire next month. Last week the Wall Street Journal said CEO Lloyd Blankfein could retire as soon as the end of this year, and that Solomon and Schwartz were the only two candidates to replace him.

Goldman's stock gained $2.61, or 1 percent, to $273.38.

Benchmark U.S. crude declined 68 cents, or 1.1 percent, to $61.36 a barrel in New York. Brent crude, used to price international oils, shed 54 cents to $64.95 a barrel in London.

Wholesale gasoline lost 1 cent to $1.89 a gallon. Heating oil fell 2 cents to $1.86 a gallon. Natural gas climbed 5 cents to $2.78 per 1,000 cubic feet.

Bond prices edged higher. The yield on the 10-year Treasury note dipped to 2.87 percent from 2.90 percent.

Gold dipped $3.20 to $1,320.80 an ounce. Silver lost 7 cents to $16.54 an ounce. Copper lost 1 cent to $3.12 a pound.

The dollar slid to 106.35 yen from 106.77 yen late Friday. The euro rose to $1.2336 from $1.2313.

The German DAX rose 0.6 percent and the FTSE 100 in London lost 0.1 percent. France's CAC 40 eked out a small gain. Tokyo's Nikkei 225 added 1.6 percent and the Hang Seng of Hong Kong jumped 1.9 percent. The Kospi in South Korea gained 1 percent.

 

[bigdog]

https://www.usnews.com/news/busines...ixed-on-trade-outlook-tighter-china-oversight

Stocks Sink as Technology Rally Fades; Qualcomm Drops
US stocks fall as a seven-day rally for technology companies ends after President Donald Trump blocked Broadcom's effort to buy chipmaker Qualcomm.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — A seven-day surge in technology stocks ended Tuesday after President Donald Trump blocked Singapore-based chipmaker Broadcom's effort to buy Qualcomm. Trump said he opposed the $117 billion deal because it could have been detrimental to national security.

The Dow Jones industrial average climbed as much as 197 points in early trading after investors were pleased with a Labor Department report that showed inflation remained in check last month. But the gains soon faded.

Technology stocks were at record highs after a recent rally. While Qualcomm had rejected all of Broadcom's offers, investors are now wondering if other deals might also be blocked or if companies will hesitate before making bids for overseas competitors.

"I don't think we've started to price in protectionism on a broader level," said Gina Martin Adams, chief equity strategist for Bloomberg Intelligence.

The S&P 500 index lost 17.71 points, or 0.6 percent, to 2,765.31. The Dow Jones industrial average slid 171.58 points, or 0.7 percent, to 25,007.03. The Nasdaq composite fell 77.31 points, or 1 percent, to 7,511.01, its first decline after seven straight gains. The Russell 2000 index of smaller-company stocks sank 9 points, or 0.6 percent, to 1,592.05.

Qualcomm is one of the biggest makers of processors that power smartphones and other mobile devices. The deal would have been the largest in the history of the technology industry and Broadcom's offer came as other countries are also getting ready to build faster "5G" wireless networks.

Trump's decision followed a recommendation from the Committee for Foreign Investment in the U.S., which said Broadcom might cut back on research and development spending.

Qualcomm slid $3.11, or 5 percent, to $59.07. Broadcom rose more than 3 percent early on but finished with a loss of $1.62 to $261.22. Intel, a competitor, added 26 cents to $51.78. The Wall Street Journal reported Friday that Intel wanted to stop the deal and might try to buy Broadcom to make that happen.

Trump also cited national security risks this month in announcing tariffs on imported aluminum and steel, and investors appeared to be wondering if at least one other deal will face new obstacles. In November Bermuda-based chipmaker Marvell Technology Group agreed to buy competitor Cavium for $6 billion. Cavium lost $4, or 4.4 percent, to $86.95 while Marvell lost $1.43, or 5.9 percent, to $22.94.

The U.S. government has blocked deals by Chinese companies in the last few years under both Barack Obama and Trump, but Adams, of Bloomberg Intelligence, said investors are more focused on the issue now.

"We no longer have tax reform dangling in front of us," she said. "It's adding to an environment in which the market is a bit more nervous."

The government said prices paid by consumers rose 0.2 percent in February, matching estimates. Excluding food and energy costs, prices have risen 1.8 percent in the last year. Prices had jumped in January. Over the last month investors have worried about the prospect of faster inflation, but Tuesday's price report and the monthly jobs report on Friday suggest inflation isn't moving any more rapidly than it did in the recent past.

"If you put the two of them together it paints a very clear picture of an economy that's operating at a very high level, that's showing some inflation, but not overheating inflation," said Rick Rieder, BlackRock's chief investment officer of global fixed income.

Rieder said that in general, service costs are rising and the costs of goods are falling, although clothing prices have bounced back a bit recently.

With investors expecting slower gains in rates, bond yields headed lower. The yield on the 10-year Treasury note slipped to 2.85 percent from 2.87 percent. Faster inflation would likely result in the Fed raising interest rates more quickly. Investors feared that could significantly slow the economy and the market's gains.

Lower yields mean lower interest rates, and that weighed on bank stocks. Bank of America fell 48 cents, or 1.5 percent, to $32.36.

Companies that are considered bond proxies, like utilities and real estate investment trusts, did better than the rest of the market. They often move in the opposite direction of bond yields because investors seeking income buy them for their big dividend payments.

Benchmark U.S. crude slumped 65 cents, or 1.1 percent, to $60.71 a barrel in New York. Brent crude, used to price international oils, lost 31 cents to $64.64 per barrel in London.

Wholesale gasoline fell 1 cent to $1.89 a gallon. Heating oil rose 1 cent to $1.87 a gallon. Natural gas gained 1 cent to $2.79 per 1,000 cubic feet.

Gold added $6.30 to $1,327.10 an ounce. Silver rose 9 cents to $16.63 an ounce. Copper gained 1 cent to $3.14 a pound.

The dollar rose to 106.61 yen from 106.35 yen. The euro rose to $1.2397 from $1.2336.

Germany's DAX shed 1.6 percent. Britain's FTSE 100 lost 1.1 percent while the CAC 40 in France slid 0.6 percent.

The Japanese Nikkei 225 index gained 0.7 percent and the Kospi of South Korea added 0.4 percent. In Hong Kong, the Hang Seng was unchanged.

 

[bigdog]

https://www.usnews.com/news/busines...-tumble-after-tillerson-exit-wall-street-drop

Banks, Industrials Fall as Trade Tensions Hit Stocks Again
US stocks fall as banks sink along with interest rates and industrial companies decline as investors worry about rising trade tensions.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stocks sank again Wednesday as investors worried about tariffs and rising trade tensions. That hurt industrial companies, while banks slumped along with interest rates.

Stocks rose in the morning as investors looked for a rebound from the previous day's losses, but with European leaders warning about the risks of trade disputes, indexes gradually headed lower. Boeing and other industrial companies, including airlines and defense companies, took some of the worst losses.

Stocks have bounced around since President Donald Trump announced his tariff plans at the start of this month. They slumped at first, but came back after the administration said it would grant exemptions to some countries. They've slipped over the last two days as investors considered the possibility of greater trade tensions with Europe and China.

"Since the correction, investors have been a little bit more sensitive to risk," said Karyn Cavanaugh, senior market strategist at Voya Investment Strategies. "Before the correction, investors were almost bulletproof."

Elsewhere, banks fell along with bond yields. Declining yields force interest rates on loans like mortgages lower, which hurts bank's profits. Household goods companies also fell while department stores and other retailers lost ground after the Commerce Department said retail sales declined in February.

The S&P 500 index lost 15.83 points, or 0.6 percent, to 2,749.48. The Dow Jones industrial average lost 248.91 points, or 1 percent, to 24,758.12. The Dow is comprised of 30 large multinational companies, some of which will feel a pinch from higher metals costs or from retaliatory tariffs that may be placed on U.S.-made goods.

The Nasdaq composite fell 14.20 points, or 0.2 percent, to 7,496.81. The Russell 2000 index of smaller-company stocks declined 7.74 points, or 0.5 percent, to 1,584.31.

European Union head Donald Tusk urged Trump to pursue more cooperation with Europe instead of putting tariffs on European goods. The EU wants an exemption from the tariffs on aluminum and steel imports that Trump recently announced and has said it could retaliate with tariffs of its own.

German Chancellor Angela Merkel said she can't predict if those talks will succeed.

Aerospace and defense giant Boeing slid $8.41, or 2.5 percent, to $330.26. Arconic, which uses a lot of aluminum in making products for aerospace companies, lost 89 cents, or 3.6 percent, to $24.06. Defense contractors including Raytheon also declined, as did airlines.

Cavanaugh said a trade war is unlikely because the Trump administration is unlikely to take steps that seriously harm global trade. While investors have sold industrial stocks, she said it's possible some of them will benefit from changes to NAFTA or other trade agreements.

"You have to be careful when you're trying to Washington-proof your portfolio because you don't know what's going to happen," she said.

Bond prices climbed, sending yields lower. The yield on the 10-year Treasury note fell to 2.82 percent from 2.84 percent, a significant move. Citigroup fell $1.44, or 1.9 percent, to $73.47 and Bank of New York Mellon lost $1.09, or 1.9 percent, to $54.87.

Retail sales dipped 0.1 percent last month as car sales declined, and so did purchases at gas stations and department stores. Kohl's slid $1.86, or 2.9 percent, to $62.25 and discount retailer Dollar Tree lost $1.61, or 1.7 percent, to $92.81.

The Commerce Department said shoppers spent more money online and at catalog retailers, and Amazon edged higher. Spending at restaurants, clothiers and building materials stores also increased.

Signet Jewelers plunged after the jewelry retailer gave profit and sales forecasts that were weaker than analysts expected. Signet also said it intends to cut at least $200 million in spending and will sell its non-prime credit receivables. It will take a loss of about $170 million on that sale. The stock dropped $9.69, or 20.2 percent, to $38.22.

Tesla declined after Bloomberg News reported that a second senior finance executive resigned. Bloomberg said Treasurer Susan Repo left to become chief financial officer at another company. A week ago the electric car maker said Chief Accounting Officer Eric Branderiz left "for personal reasons." Separately, CNBC reported that Tesla is having problems manufacturing some parts for its highly anticipated Model 3 sedan.

Tesla slipped $15.21, or 4.4 percent, to $326.63.

Benchmark U.S. crude gained 25 cents to $60.96 a barrel in New York. Brent crude, used to price international oils, added 25 cents to $64.89 per barrel in London.

Wholesale gasoline added 4 cents to $1.92 a gallon. Heating oil rose 1 cent to $1.89 a gallon. Natural gas slid 6 cents to $2.73 per 1,000 cubic feet.

Gold slipped $1.50 to $1,325.60 an ounce. Silver lost 9 cents to $16.54 an ounce. Copper rose 2 cents to $3.16 a pound.

The dollar fell to 106.25 yen from 106.61 yen. The euro slipped to $1.2375 from $1.2397.

France's CAC 40 gave up 0.2 percent and the British FTSE 100 lost 0.1 percent. Germany's DAX added 0.1 percent.

Japan's benchmark Nikkei 225 lost 0.9 percent while South Korea's Kospi fell 0.3 percent. Hong Kong's Hang Seng dropped 0.5 percent.

 

[bigdog]

https://www.usnews.com/news/busines...s-waver-as-market-mulls-kudlow-trade-tensions

US Stocks End Mostly Lower as Midday Gains Slip Away
US stocks mostly take losses as smaller companies, drugstores and packaged food companies finish lower.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Stocks finished mostly lower Thursday in another choppy day of trading after a midday rally faded. Industrial and technology companies rose, but smaller companies and chemical makers skidded.

Without any major economic reports or further development on issues like tariffs, stocks drifted up and down. The market was coming off two days of losses, and while stocks briefly moved higher in the middle of the day, they couldn't sustain any momentum.

Agribusiness company Monsanto fell after Bloomberg News reported that U.S. authorities have concerns about its sale to Bayer and might order Bayer to sell more assets. Toymakers Hasbro and Mattel sagged as Toys R Us moved toward shuttering its U.S. stores.

Industrial companies bounced back after three days of declines that stemmed from worries about trade tensions. After big gains earlier this month, smaller, more U.S.-focused companies continued to slip. Drugstores and packaged food companies also declined. Technology companies finished with small gains, however.

Tech stocks did far better than the rest of the stock market in 2017, and they are the only part of the S&P 500 that has fully recovered from last month's sell-off, and Lindsey Bell, an investment strategist at CFRA Research, thinks there is a good chance the industry will outpace the broader market again this year.

"Our economy in general and our world in general is becoming more connected digitally and this is an area that's going to continue to thrive as time goes on," Bell said. She added that chipmakers and service companies like Alphabet and Facebook should continue to do well.

The S&P 500 fell 2.15 points, or 0.1 percent, to 2,747.33. It climbed as much as 13 points earlier but wound up with its fourth consecutive loss. The Dow Jones industrial average added 115.54 points, or 0.5 percent, to 24,873.66. The Nasdaq composite lost 15.07 points, or 0.2 percent, to 7,481.74. The Russell 2000 index of smaller-company stocks slid 7.69 points, or 0.5 percent, to 1,576.62.

Most the companies listed on the New York Stock Exchange traded lower.

Monsanto stock fell $5.95, or 4.8 percent, to $117.20 after Bloomberg News reported that antitrust regulators want Bayer to sell more assets before they allow the company to buy Monsanto. The report cited unnamed sources familiar with the matter. Bayer agreed to buy Monsanto for $66 billion in 2016, and its U.S.-traded shares rose 22 cents to $29.76 Thursday.

Mattel declined 34 cents, or 2.4 percent, to $13.84 and Hasbro fell 38 cents, or 0.4 percent, to $88.15 as Toys R Us prepares to shut down its U.S. operations. CEO David Brandon told employees Wednesday the chain plans to liquidate all of its U.S. stores, according to an audio recording of the meeting obtained by The Associated Press. Hasbro and Mattel each get about 10 percent of their sales from Toys R Us, which has 740 stores and 30,000 employees in the U.S.

The 70-year-old company filed for Chapter 11 bankruptcy protection in late October and said in late January that it would close 182 stores. Mattel has plunged 22 percent since then and Hasbro has fallen 7 percent.

IBM and chipmaker Broadcom helped technology companies move higher. Thanks to their big gains in the last 15 months, technology companies now comprise one-fourth of the total value of the S&P 500. It's been almost 20 years since any sector dominated the index that way: according to S&P Global, technology made up one-third of the index in early 2000, at the height of the dot-com boom.

Bell, of CFRA Research, said more deals are likely in the chip industry as both Broadcom and Intel look to buy other companies following the government's decision to block Broadcom's effort to buy Qualcomm.

Discount retailer Dollar General climbed $4.24, or 4.8 percent, to $93.44 after it said shoppers spent more money per trip during the fourth quarter. The company also gave a strong forecast for the year. Competitor Dollar Tree gained $1.35, or 1.5 percent, to $94.16.

Oil and gas pipeline partnerships including Williams Cos. dropped after the Federal Energy Regulatory Commission announced changes to tax rules.

Benchmark U.S. crude added 23 cents to $61.19 a barrel in New York. Brent crude, used to price international oils, rose 23 cents to $65.12 per barrel in London.

Wholesale gasoline remained at $1.92 a gallon. Heating oil rose 1 cent to $1.89 a gallon. Natural gas fell 5 cents to $2.68 per 1,000 cubic feet.

Gold fell $7.80 to $1,317.80 an ounce. Silver fell 12 cents to $16.42 an ounce. Copper lost 3 cents to $3.13 a pound.

Bond prices edged lower. The yield on the 10-year Treasury note rose to 2.83 percent from 2.82 percent.

The dollar dipped to 106.24 yen from 106.25 yen. The euro fell to $1.2303 from $1.2375.

The DAX in Germany rose 0.9 percent and France's CAC 40 gained 0.6 percent. The British FTSE 100 added 0.2 percent. Japan's benchmark Nikkei 225 edged 0.1 percent higher while South Korea's Kospi rose 0.3 percent. Hong Kong's Hang Seng rose 0.3 percent.