NYSE Dow Jones finished today at:

[bigdog]

https://www.usnews.com/news/busines...sian-stocks-most-lower-amid-trade-uncertainty

Tech and Health Care Lead US Stocks Lower; Bond Yields Rise
Losses in technology and health care companies helped pull U.S. stocks lower, snapping an eight-day winning streak by the Dow Jones industrial average.

By ALEX VEIGA, AP Business Writer

Losses in technology and health care companies helped pull U.S. stocks lower Tuesday, snapping an eight-day winning streak by the Dow Jones industrial average.

The broad sell-off followed a slide in bond prices, which sent the 10-year Treasury yield to its highest level in almost seven years. That paves the way for higher borrowing costs on mortgages and other loans.

The prospect of higher mortgage interest rates weighed on homebuilders, while the rise in bond yields sent shares in high-dividend paying stocks lower.

"We're of the view that we're not in a high-rate environment, we're in a less-low rate environment," said Erik Davidson, chief investment officer at Wells Fargo Private Bank. "So we're not too concerned at these levels, but that's definitely driving the market today."

The S&P 500 index fell 18.68 points, or 0.7 percent, to 2,711.45. The Dow lost 193 points, or 0.8 percent, to 24,706.41. The drop pulled the 30-company average to a slight loss for the year.

The Nasdaq composite dropped 59.69 points, or 0.8 percent, to 7,351.63. The Russell 2000 index of smaller-company stocks finished flat at 1,600.34.

The market slide comes in the midst of a strong May for stocks. The Dow is on track for a gain of 2.2 percent, while the S&P 500 is closing in on a gain of 2.4 percent. The Nasdaq is up 4 percent.

On Tuesday, it was the bond market that appeared to hold investors' focus.

The yield on the 10-year Treasury rose to 3.07 percent from 3 percent late Monday. That's the highest level since July 2011 for the yield, which is used to set interest rates on mortgages and other kinds of loans.

The surge came after the Commerce Department said retail sales climbed 0.3 percent in April. The agency also revised March sales higher to 0.8 percent from 0.6 percent. The retail sales data suggest that consumers are spending more after a weak first quarter. Bond yields tend to rise when investors expect faster economic growth and higher inflation.

The Federal Reserve has signaled that it will raise rates twice more this year, after having done so initially in March, and most economists foresee the next increase in June. Some Fed watchers have been cautioning that any lasting uptick in inflation or in economic growth might spur the Fed to pursue an additional rate increase before year's end.

"The stock market was due for a digestion of the gains that we've seen over the last eight trading sessions," said Quincy Krosby, chief market strategist at Prudential Financial.

The rise in bond yields pulled down shares in real estate investment trusts and other high-dividend paying stocks. Essex Property Trust fell 3.4 percent to $233.78.

It also put investors in the mood to sell their shares in homebuilders. Mortgage rates, which have been rising this year, tend to track the movement in the 10-year Treasury yield. Higher mortgage rates can make it harder for would-be buyers to afford to purchase a home. D.R. Horton slid 6.7 percent to $40.58.

Some banks got a boost from the higher rates, which make loans more profitable. Capital One Financial rose 1.6 percent to $94.65.

Home Depot dropped 1.4 percent to $187.98 after the home-improvement retailer reported weaker-than-expected sales, partly because of inclement weather, and said the second quarter got off to a slow start.

Technology and health care sector companies took some of the worst losses. Chipmaker Nvidia fell 3.8 percent to $245.56. Drugmaker Celgene slid 3.9 percent to $81.98.

Benchmark U.S. crude oil reversed an early side, rising 35 cents to settle at $71.31 a barrel in New York. Brent crude, used to price international oil, added 20 cents to close at $78.43 a barrel in London.

The dollar rose to 110.38 yen from 109.66 yen late Monday. The euro weakened to $1.1847 from $1.1944.

The greenback's gains weighed on precious metals prices. Gold fell $27.90, or 2.1 percent, to $1,290.30 an ounce. Silver dropped 38 cents, or 2.3 percent, to $16.27 an ounce. Copper slipped 4 cents, or 1.2 percent, to $3.06 a pound.

In other energy futures trading, heating oil was little changed at $2.25 a gallon. Wholesale gasoline added a penny to $2.21 a gallon. Natural gas dipped a penny to $2.84 per 1,000 cubic feet.

Major indexes in Europe finished mixed Tuesday. Germany's DAX fell 0.1 percent after new data showed the country's economy slowed in the first quarter. France's CAC 40 inched up 0.2 percent. Britain's FTSE 100 added 0.2 percent.

In Asia, Japan's benchmark Nikkei 225 edged down 0.2 percent. Australia's S&P/ASX 200 lost 0.6 percent. South Korea's Kospi slipped 0.7 percent. Hong Kong's Hang Seng dropped 1.2 percent.

 

[bigdog]

https://www.usnews.com/news/busines...s-weak-japan-gdp-data-pull-asian-shares-lower

Technology, Retailers Help Drive Rebound in US Stocks
U.S. stocks notched solid gains Wednesday, recouping some of the market's losses from a day earlier. Technology and health care companies drove much of the rebound, outweighing losses in safe-play stocks like utilities and real estate investment trusts.

By ALEX VEIGA, AP Business Writer

U.S. stocks notched solid gains Wednesday, recouping some of the market's losses from a day earlier.

Technology and health care companies drove much of the rebound, outweighing losses in safe-play stocks like utilities and real estate investment trusts. Small-company stocks fared better than the rest of the market.

Macy's led a rally among retailers after reporting surprisingly strong results, adding to the strong wave of corporate earnings in recent weeks.

"Earnings growth has shown through and that's been primarily based on strong fundamental growth from U.S. companies," said Jamie Lavin, global investment specialist at J.P. Morgan Private Bank. "And when equity markets are able to look through to that and we don't have any major geopolitical headlines, we tend to have stronger days in the market."

The S&P 500 index rose 11.01 points, or 0.4 percent, to 2,722.46. The Dow Jones industrial average gained 62.52 points, or 0.3 percent, to 24,768.93. The increase nudged the 30-company average to a small gain for the year.

The Nasdaq composite added 46.67 points, or 0.6 percent, to 7,398.30. The Russell 2000 index of smaller-company stocks picked up 16.03 points, or 1 percent, to 1,616.37, topping its last all-time high in January.

The stock indexes wavered little from their upward trajectory Wednesday as investors appeared to shake off concerns about the prior day's spike in bond yields. The market also failed to react much to a Commerce Department report early Wednesday that showed U.S. residential construction fell 3.7 percent in April following a steep drop in apartment construction.

"The market is taking the weaker number with a grain of salt, remembering that colder weather could be a factor," Lavin said. "Year-over-year housing permits are still up."

Technology and health care companies bounced back Wednesday after taking some of the worst losses a day earlier. Western Digital rose 4.9 percent to $87.02, while Cerner added 2.9 percent to $59.97.

Investors continued to sift through the latest batch of corporate report cards from big-name retailers, many of which are issuing quarterly results this week.

Macy's latest results far exceeded analysts' expectations. The department store operator noted that its Bloomingdale's and Bluemercury divisions as well as its flagship store brand all did well. The company's shares led all stocks in the S&P 500, vaulting 10.8 percent to $33.17.

"Seeing encouraging earnings and guidance from Macy's, on top of as-expected growth in retail sales, it gives investors additional reason to be optimistic," said Sam Stovall, chief investment strategist at CFRA Equity Research.

Office Depot climbed 5.1 percent to $2.46 after the office supply company maintained its forecasts for the year.

Several other retailers also moved higher. Nordstrom added 2.4 percent to $51.05, while L Brands gained 2.6 percent to $34.19. Target shares picked up 2.9 percent to $75.23.

Investors will get to pore over more results from retailers Thursday, including Walmart, J.C. Penney and Nordstrom.

"Retail is important because it's a reflection of consumer sentiment and you have many people who are employed by the brick-and-mortar retailers," Stovall said.

Abaxis was among the big gainers Wednesday. The veterinary diagnostics products company vaulted 16.2 percent to $83.34 after it agreed to be acquired by Zoetis.

Traders bid up shares in Teva Pharmaceutical Industries after Warren Buffett's company Berkshire Hathaway more than doubled the size of its investment in the Israeli drugmaker. Teva added 2.9 percent to $20.88. Phillips 66 slipped 0.1 percent to $118.16 after Berkshire sold about half of its investment in the oil and gas company.

Bond prices fell. The yield on the 10-year Treasury rose to 3.10 percent from 3.07 percent late Tuesday, when the yield climbed to its highest level in nearly seven years.

The pickup in bond yields weighed on utilities and other high-dividend paying stocks, adding to their losses from a day earlier. Sempra Energy fell 1.8 percent to $103.34.

Benchmark U.S. crude oil recovered from an early slide, adding 18 cents to settle at $71.49 a barrel in New York. Brent crude, used to price international oil, rose 85 cents to close at $79.28 a barrel in London.

The dollar fell to 110.25 yen from 110.38 yen on Tuesday. The euro weakened to $1.1802 from $1.1847.

Gold rose $1.20 to $1,291.50 an ounce. Silver added 10 cents to $16.37 an ounce. Copper gained 1 cent to $3.07 a pound.

In other energy futures trading, heating oil rose 2 cents to $2.27 a gallon. Wholesale gasoline climbed 5 cents, or 2 percent, to $2.25 a gallon. Natural gas lost 2 cents to $2.82 per 1,000 cubic feet.

Major indexes in Europe finished higher Wednesday. Germany's DAX gained 0.2 percent, while France's CAC 40 added 0.3 percent. Britain's FTSE 100 rose 0.1 percent.

In Asia, Japan's Nikkei 225 stock index lost 0.4 percent following new data showing that Japan's economy contracted in the first quarter. The Kospi in South Korea was essentially flat. Hong Kong's Hang Seng slipped 0.1 percent.

 

[bigdog]

https://www.usnews.com/news/busines...tocks-mixed-as-investors-digest-us-japan-data

US Stocks End Choppy Day Slightly Lower Amid Trade Jitters

By ALEX VEIGA, AP Business Writer

U.S. stock indexes closed slightly lower Thursday after a day of mostly choppy trading, wiping out some of the market's gains from a day earlier.

Technology stocks took some of the worst losses. Fast-food chains and other consumer-focused companies, utilities and banks also declined, outweighing gains in energy and industrial stocks. Small-company stocks fared better than the rest of the market.

The indexes veered solidly into the red by late afternoon ahead of a new round of trade talks between the U.S. and China. The countries have threatened tariffs on each other.

"Now that we're making it out of earnings season, geopolitical is going to come back into the forefront of what the market's concerns are," said Shawn Cruz, manager of trader strategy at TD Ameritrade. "And that may continue to drive intraday volatility until we get more certainty as far as what is actually going to come out of these trade talks."

The S&P 500 index slipped 2.33 points, or 0.1 percent, to 2,720.13. The Dow Jones industrial average lost 54.95 points, or 0.2 percent, to 24,713.98. The drop pulled the Dow into the red for the year. The Nasdaq composite fell 15.82 points, or 0.2 percent, to 7,382.47.

The Russell 2000 index of smaller-company stocks bucked the downward trend, setting an all-time high for the second day in a row. The index picked up 8.92 points, or 0.6 percent, to 1,625.29.

Small-cap companies tend to be more focused on business in the U.S., rather than overseas, which may make them more attractive to investors worried about a trade war or rising interest rates.

"The concern is on the geopolitical front, that's why you're seeing the large-cap, the multinationals, really getting hit by this," Cruz said.

The Trump administration was scheduled to resume talks in Washington with senior Chinese officials seeking to ward off a trade war between the world's two biggest economies. But while fielding questions from reporters Thursday afternoon, Trump suggested the talks may not end up averting a trade war with China: "Will that be successful? I tend to doubt it," Trump said.

Investors took note of the remarks and the market indexes moved lower after spending much of the day wavering between small gains and losses.

The Trump administration has proposed tariffs on up to $150 billion in Chinese products to punish Beijing for forcing American companies to turn over technology in exchange for access to the Chinese market. China has countered by targeting $50 billion in U.S. products. Neither country has imposed the tariffs.

The latest quarterly results and outlooks from several companies also put investors in a selling mood.

J.C. Penney sank 12.4 percent to $2.69 after the struggling department store chain said it might take a loss in 2018 as it cut its annual forecast. Jack in the Box lost 8.3 percent to $83.79 after the burger chain's earnings fell short of analysts' expectations.

Cisco Systems led a slide in technology stocks after the seller of routers, switches and software's latest quarterly results disappointed traders. The stock slid 3.8 percent to $43.46.

Dillard's bucked the trend with earnings that exceeded Wall Street's estimates. The department store chain climbed 6.3 percent to $76.53.

CBS slid 4.1 percent to $51.61 after a Delaware judge refused Thursday to grant the company a restraining order against its majority shareholder. CBS had sought to prevent Shari Redstone's National Amusements from thwarting a board vote on a dividend that would dilute National Amusements' voting power, effectively giving CBS independence.

An early rally in crude oil faded by late afternoon. Benchmark U.S. crude oil ended flat at $71.49 a barrel in New York. Brent crude, used to price international oil, rose 2 cents to close at $79.30 a barrel in London. It had been briefly above $80 a barrel, its highest level since November 2014.

Energy stocks notched solid gains. Valero Energy gained 4.1 percent to $119.71.

Williams Partners jumped 8 percent to $41.49 after it agreed to be acquired by oil pipeline company Williams Cos. in an all-stock deal they valued at $10.5 billion.

Bond prices fell. The yield on the 10-year Treasury rose to 3.11 percent from 3.10 percent late Wednesday.

The dollar rose to 110.75 yen from 110.25 yen on Wednesday. The euro weakened to $1.1799 from $1.1802.

Gold fell $2.10 to $1,289.40 an ounce. Silver added 11 cents to $16.48 an ounce. Copper gained 2 cents to $3.09 a pound.

In other energy futures trading, heating oil rose a penny to $2.28 a gallon. Wholesale gasoline fell a penny to $2.24 a gallon. Natural gas gained 4 cents to $2.89 per 1,000 cubic feet.

Major stock indexes in Europe finished higher Thursday. Germany's DAX gained 0.9 percent, while France's CAC 40 rose 1 percent. Britain's FTSE 100 added 0.7 percent. Major indexes in Asia ended mostly lower. Japan's Nikkei 225 index added 0.5 percent. Hong Kong's Hang Seng fell 0.5 percent. The Kospi in South Korea slid 0.5 percent.

 

[bigdog]

https://www.usnews.com/news/busines...n-stocks-higher-on-backdrop-of-us-china-talks

US Stock Indexes Cap Choppy Trading Week With a Mixed Finish

By ALEX VEIGA, AP Business Writer

Despite a choppy week of trading and a mixed finish for U.S. stocks, the market extended its recent streak of relative calm Friday.

The S&P 500, the market's benchmark index, notched its 10th day in a row without a gain or drop of 1 percent or more. That's the longest stretch going back to January 26, when the market broke four and a half months of calm with a 1.2 percent gain, which also marked a record high.

Just one week later, the market entered an extended bout of volatility that included a rapid plunge of 10 percent in early February. That was the first "correction" the market had seen in two years.

Since then, the market has returned to quieter trading, even as U.S. companies report fatter profits and investors grow anxious about rising interest rates and the threat of a trade war between the U.S. and China.

"Now it feels like investors are paralyzed trying to choose between a pretty solid economic picture and great earnings growth, and rising rates and ongoing geopolitical drama day to day," said Craig Birk, executive vice president of portfolio management at Personal Capital.

The S&P 500 index fell 7.16 points, or 0.3 percent, to 2,712.97. The Dow Jones industrial average gained 1.11 points to 24,715.09. The Nasdaq composite lost 28.13 points, or 0.4 percent, to 7,354.34.

The Russell 2000 index of smaller-company stocks rose 1.34 points, or 0.1 percent, to 1,626.63, its third all-time high in a row.

The indexes finished the week in the red, but are still on track for gains this month, led by the Russell 2000.

After a strong start to the month, markets have been choppy this week as investors turned the page on the first-quarter earnings reporting season and weighed the implications of the ongoing trade tensions between the U.S. and China. The countries, which have threatened tariffs on each other, were holding discussions aimed at averting a trade war between the world's two biggest economies.

Traders have also been coming to grips with the yield on the 10-year Treasury note moving well past 3 percent. It hit 3.12 percent on Wednesday, its highest level in almost seven years.

"The issue of inflation is starting to rear its head again," said Jeff Kravetz, regional investment strategist for U.S. Bank Private Wealth Management. "That's got investors a bit nervous. And then we have the dollar strengthening and emerging markets weakening."

Even so, the S&P 500 has remained on a narrow trading range, keeping volatility largely under wraps, at least for now.

On Friday, banks and technology companies were among the biggest decliners, offsetting gains by industrial and health care stocks. Energy companies also declined as crude oil prices closed lower.

Bond prices rose, sending yields lower. The yield on the 10-year Treasury fell to 3.06 percent from 3.12 percent late Thursday. The pullback in bond yields, which affect interest rates on mortgages and other consumer loans, weighed on bank stocks. Citigroup fell 2.2 percent to $69.96.

Some companies' latest quarterly results or outlooks also put investors in a selling mood Friday.

Campbell Soup plunged 12.4 percent to $34.37 after the packaged foods company lowered its profit forecast and said that its CEO, Denise Morrison, was retiring effectively immediately. The stock was the biggest decliner in the S&P 500 and had its worst single-day drop since 1999.

Nordstrom tumbled 10.9 percent to $45.36 after the upscale department store chain said sales at established stores, a key metric for retailers, showed meager gains in the first quarter.

Applied Materials slumped 8.2 percent to $49.51 after the maker of chipmaking equipment forecast revenue for the current quarter that was below Wall Street's estimates.

Industrials and health care stocks notched solid gains. Drugmaker Nektar Therapeutics led all stocks in the S&P 500, climbing 7.7 percent to $85.30. Deere & Co. gained 5.7 percent to $155.25 after the agricultural and construction equipment maker forecast 35 percent growth in equipment sales for its third quarter.

PayPal Holdings added 2 percent to $80.79 on news that the company is buying Stockholm-based payment processing startup iZettle for $2.2 billion with the aim of expanding into Europe and Latin America.

Benchmark U.S. crude oil fell 21 cents to settle at $71.28 a barrel in New York. Brent crude, used to price international oil, lost 79 cents to $78.51 a barrel in London.

The slide in oil prices was a drag on energy stocks. Range Resources slid 3.2 percent to $15.17.

Gold gained $1.90 to $1,291.30 an ounce. Silver slipped 3 cents to $16.46 an ounce. Copper dropped 3 cents to $3.06 a pound.

The dollar fell to 110.68 yen from 110.75 yen on Thursday. The euro weakened to $1.1773 from $1.1799.

In other energy futures trading, heating oil lost 2 cents to $2.27 a gallon. Wholesale gasoline slipped a penny to $2.23 a gallon. Natural gas gave up a penny to $2.85 per 1,000 cubic feet.

Major indexes in Europe fell. Germany's DAX gave up 0.3 percent, while France's CAC 40 slid 0.1 percent. Britain's FTSE 100 lost 0.1 percent.

Asian stock markets finished mostly higher. Japan's Nikkei 225 added 0.4 percent and South Korea's Kospi index rose 0.5 percent. Hong Kong's Hang Seng index gained 0.3 percent.

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[bigdog]

Hope for US-China trade progress sends stocks jumping
Stocks rally on Wall Street and overseas after the U.S. and China said they made progress in trade talks

https://www.nytimes.com/aponline/2018/05/21/world/asia/ap-financial-markets.html

Written by By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Industrial and technology companies led stocks to solid gains Monday after the U.S. and China appeared to make significant progress in trade talks. That helped ease concerns among investors that the world's two biggest economies might be headed for a trade war.

After another round of talks, the two countries agreed not to place tariffs on goods imported from the other. The Chinese government said it will buy more U.S. goods, including energy and agricultural products, while Treasury Secretary Steven Mnuchin said the U.S. postponed its proposal to put tariffs on up to $150 billion in goods from China. The two sides gave no indication of how much progress they had made toward ending their dispute entirely and both said hostilities could increase again.

Mark Hackett, chief of investment research at Nationwide Investment Management, said investors overreacted to the possibility of a trade war and they may be slowly learning to take a more patient approach with statements by the Trump administration and other nations, which is a good thing, Hackett says, because future administrations may borrow from Trump's aggressive style.

"Treating Trump literally is destructive for investors," he said. "There's a lot of these issues where there are going to be hyperbolic statements made in the public sphere by both sides."

The S&P 500 index climbed 20.04 points, or 0.7 percent, to 2,733.01. The Dow Jones industrial average rose as much as 371 points during the morning and finished with a gain of 298.20 points, or 1.2 percent, to 25,013.29. The Nasdaq composite gained 39.70 points, or 0.5 percent, to 7,394.04. The Russell 2000 index of smaller-company stocks set another record close as it jumped 10.81 points, or 0.7 percent, to 1,637.44.

All 11 sectors in the S&P 500 index finished higher. Among industrials, Boeing gained 3.6 percent to $363.92 and construction equipment maker Caterpillar rose 2.1 percent to $158.92. In the financial sector, Bank of New York Mellon added 1.3 percent to $57.72 and JPMorgan Chase rose 0.9 percent to $112.15.

Trade disputes have occupied a lot of investors' attention for the last two months. Stocks have rallied on signs progress was being made, only to fall back when the situation appeared to worsen. Hackett said Wall Street could get over its trade worries relatively quickly if talks go well.

If that happens, he said stocks could be set for further gains because they are still below their early 2018 highs and analysts expect stronger earnings growth, which makes stock prices seem less expensive.

General Electric rose 1.9 percent to $15.26 after announcing that its train engine division will combine with railroad equipment maker Westinghouse Air Brake Technologies in deal worth $11.1 billion. It's the latest step by GE's CEO, John Flannery, to break off parts of the conglomerate. GE will get $2.9 billion in cash and will own 50.1 percent of the combined company, and the deal will help it narrow its business down to the aviation, health care and energy industries.

Wabtec gained 3.5 percent to $98.55.

Chipmakers rallied after Micron Technology raised its profit and revenue forecasts for the fiscal third quarter. Micron jumped 3.9 percent to $55.48 while Intel picked up 1.5 percent to $54.32 and Lam Research added 2.2 percent to $199.87.

That contributed to a broad rally in technology stocks. Microsoft gained 1.3 percent to $97.60 and Google's parent company Alphabet rose 1.3 percent $1,084.01.

Fifth Third Bancorp is buying Chicago's MB Financial for about $4.7 billion, mostly in stock. The deal values MB at $54.20 per share, and its stock rose 12.9 percent to $49.28 while Fifth Third tumbled 7.9 percent to $30.90.

Investment manager Blackstone agreed to buy LaSalle Hotel Properties for $33.50 a share, or $3.7 billion in cash. LaSalle jumped 5.4 percent to $33.61 while Blackstone rose along with other financial firms and gained 1.6 percent to $31.79.

Health care companies finished a bit higher overall but didn't do as well as the rest of the market. Biotechnology companies lost groups as Celgene dropped 4.7 percent to $74.69 and Alexion Pharmaceuticals fell 1.4 percent to $119.37.

The dollar rose to 111.11 yen from 110.68 yen late Friday. The euro dipped to $1.1772 from $1.1773.

Energy companies advanced as benchmark U.S. crude oil rose 1.3 percent to $72.24 a barrel in New York. Brent crude, used to price international oil, added 0.9 percent to $79.22 per barrel in London.

Wholesale gasoline added 1 percent to $2.26 a gallon and heating oil rose 0.4 percent to $2.27 a gallon. Natural gas fell 1.3 percent to $2.81 per 1,000 cubic feet.

Gold was little changed at $1,290.90 an ounce. Silver rose 0.4 percent to $16.52 an ounce. Copper picked up 1.1 percent to $3.10 a pound.

Bond prices held steady. The yield on the 10-year Treasury note stayed at 3.06 percent.

The British FTSE 100 gained 1 percent and France's CAC 40 rose 0.5 percent. The German market was closed for a holiday. Japan's Nikkei 225 rose 0.3 percent. Hong Kong's Hang Seng gained 0.6 percent and South Korea's Kospi added 0.2 percent.

 

[bigdog]

https://www.usnews.com/news/busines...-markets-mostly-lower-after-wall-street-gains

Stocks Sink Late as Smaller Companies and Industrials Fade
Stocks give up early gains and finish lower as smaller companies retreat from record highs and industrial companies and retailers decline.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Stocks faded Tuesday afternoon and finished the day mostly lower as industrial companies and retailers fell. Smaller and more U.S.-focused companies slumped after setting records the last few days.

Large industrial companies like Boeing, 3M and Caterpillar slipped, and retailers including Kohl's, AutoZone and Advance Auto Parts fell after releasing their quarterly results. Energy companies fell as crude oil gave up an early gain. Smaller companies had their worst day of the month as a winning streak that brought them to all-time highs came to an end.

For most of the day stocks were on track for small gains. Automakers rose after China said it will reduce duties on imported cars in July, a sign the U.S. and China could resolve some of their differences on trade. Banks climbed as Congress prepared to loosen some of the rules that have governed the industry since the 2008 financial crisis.

Stocks rose Monday as investors grew more hopeful that the trade dispute between the U.S. and China will be resolved without major effects on the global economy. But Marina Severinovsky, an investment strategist at Schroders, said the two countries appear to be looking for easy wins without addressing larger and more difficult issues, like China's technology policies and its handling of intellectual property.

That might pacify the market for now because the global economy is doing well, but she thinks tensions will eventually flare up again.

"The more competitive the Chinese become in higher-end industries ... the more this is really going to become an issue," she said. "There will be more industries and companies clamoring for protection."

The S&P 500 index slid 8.57 points, or 0.3 percent, to 2,724.44. The Dow Jones industrial average lost 178.88 points, or 0.7 percent, to 24,834.41. The Nasdaq composite fell 15.58 points, or 0.2 percent, to 7,378.46. The Russell 2000 index of smaller company stocks gave up 12.20 points, or 0.7 percent, to 1,625.24 after it closed at record highs the last four days.

J.C. Penney was one of the worst performers among both small companies and retailers. It fell 6 percent to $2.35 after it said Chairman and CEO Marvin Ellison will leave to become CEO of Lowe's. He worked at Lowe's rival Home Depot for 12 years before he was hired by J.C. Penney, which reported weak first-quarter results less than a week ago.

Elsewhere, jeans retailer Guess fell 7.9 percent to $23.80. Kohl's had a strong second quarter, but said much of that strength came because a Mother's Day-related sale came earlier in the year. While that helped the company in the fiscal second quarter, it will hurt its sales in the third and fourth quarters. Kohl's sank 7.4 percent to $60.61.

Banks fared better as the House of Representatives was expected to pass a bill that increases the threshold at which banks are deemed so big and so connected to the financial grid that if one were to fail it would cause major havoc. The legislation would roll back parts of the Dodd-Frank law, which was passed in the aftermath of the 2008 financial crisis. The measure passed the Senate in March with the support of Republicans and some Democrats.

Banks reported record profits in the first quarter of the year as last year's corporate tax cut juiced their profits. BB&T Corp. gained 1.3 percent to $55.53 and Bank of America rose 1.1 percent to $30.89.

Severinovsky, of Schroders, said the bill wouldn't make a major difference to banks, but it gave investors a reason to feel better about their prospects.

"These are very different businesses than the way we remember them in 2009," she said, adding that banks have stronger balance sheets and are befitting from the improved economy and higher interest rates.

China followed up on a promise it made in April by reducing auto import duties effective July 1. That follows pledges to buy more U.S. goods and end restrictions on foreign ownership in the industry. China is the world's biggest auto market by number of vehicles sold as consumer bought 24.7 million SUVs, sedans and minivans in 2017, compared with 17.2 million for the U.S., the next-biggest market, United States.

Tata Motors of India advanced 4 percent to $22.91 and Fiat Chrysler gained 1.3 percent to $22.62.

Benchmark U.S. crude and fell 0.2 percent to $72.13 per barrel in New York. Brent crude, used to price international oils, rose 0.4 percent to $79.57 per barrel in London.

Wholesale gasoline rose 0.6 percent to $2.27 a gallon. Heating oil added 0.3 percent to $2.28 a gallon. Natural gas jumped 3.5 percent to $2.91 per 1,000 cubic feet.

Gold rose 0.1 percent to $1,292 an ounce. Silver added 0.3 percent to $16.58 an ounce. Copper rose 1.1 percent to $3.13 a pound.

Bond prices were little changed. The yield on the 10-year Treasury note remained at 3.06 percent.

The dollar declined to 111.02 yen from 111.11 yen. The euro rose to $1.1779 from $1.1772.

The German DAX, which was closed for a holiday Monday, jumped 0.7 percent and London's FTSE 100 added 0.2 percent. France's CAC 40 rose less than 0.1 percent. Tokyo's Nikkei 225 lost 0.2 percent.

Markets in Hong Kong and South Korea were closed for holidays.

 

[bigdog]

https://www.usnews.com/news/busines...-fall-amid-worries-over-us-china-trade-koreas

Fed Gives Stocks a Boost; Technology and Retailers Rally
US stocks reverse early losses and finish higher as investors are pleased that the Federal Reserve didn't appear to be in a hurry to raise interest rates at its meeting earlier this month.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stocks turned higher Wednesday after the Federal Reserve indicated it's not in a hurry to raise interest rates too quickly. Retailers and technology companies led the way as the market erased some early losses.

Stocks opened lower after a business survey suggested that the eurozone economy might remain weak for longer than experts had expected. Investors bought U.S. and European government bonds, which sent yields and interest rates lower and hurt banks. The S&P 500 index fell as much as 14 points early on.

The market turned higher after the Fed released minutes from its meeting in early May. Officials concluded that the Fed should be on track to keep raising interest rates gradually, and some said it wouldn't be a problem if inflation briefly went past the Fed's target rate of 2 percent. That suggests the Fed won't raise interest rates too quickly, a development that worries investors because it would slow down economic growth.

"Investors are sort of nervous around an overly aggressive Fed at this point in the cycle maybe throwing us into a recession," said Katie Nixon, chief investment officer for Northern Trust Wealth Management.

The S&P 500 index rose 8.85 points, or 0.3 percent, to 2,733.29. The Dow Jones industrial average gained 52.40 points, or 0.2 percent, to 24,886.81. The Nasdaq composite climbed 47.50 points, or 0.6 percent, to 7,425.96. The Russell 2000 index of smaller-company stocks added 2.37 points, or 0.1 percent, to 1,627.61.

Federal Reserve officials left interest rates unchanged in early May and investors expect they will raise them in mid-June. The central bank's members discussed concerns such as rising wage pressures and possible negative reactions to the Trump administration's trade policies, but didn't change their overall views.

The central bank has said it expects to raise rates a total of three times this year and some experts believe it will raise rates as many as four times. Nixon, of Northern Trust, said she expects only two rate increases: she said the Fed might leave rates alone after June if it sees signs the economy is slowing down a bit as the effects of last year's tax cuts fade.

Tiffany sparkled in the first quarter as the jewelry company's earnings and sales blew past Wall Street projections. The company also said it's planning to buy back $1 billion in its own stock. The stock jumped 23.3 percent to $126.05. Also rising after its quarterly report was Ralph Lauren, which jumped 14.3 percent to $133.33.

Target slumped after its first-quarter profit fell short of expectations. The big box retailer said more customers came to its stores and sales improved, but it's spending a lot of money to try to reinvent itself to better compete with Amazon. Target plans to spend $7 billion through 2020 to update stores and open smaller locations in urban markets. The stock sank 5.7 percent to $71.17.

Home improvement retailer Lowe's had a mostly disappointing first quarter as harsh winter weather cut into the traditional spring sales season, but the company forecast stronger sales growth for the rest of the year. The stock surged 10.4 percent to $94.69. Lowe's stock and its sales have lagged behind Home Depot, but it made up ground on Wednesday.

The IHS Market purchasing managers' index, a broad gauge of business activity in Europe, fell to its lowest level in 18 months in May. While the European economy is still growing, investors had hoped for signs the doldrums were clearing.

Germany's DAX gave up 1.5 percent and France's CAC 40 fell 1.3 percent while the British FTSE 100 lost 1.1 percent. Investors bought European government bonds, pushing prices higher and yields lower in Germany, Spain, France and the U.K.

Bond prices climbed in the U.S. as well. The yield on the 10-year Treasury note fell to 2.99 percent from 3.06 percent. With interest rates in decline, banks lost ground.

Banks climbed Tuesday before Congress passed a bill that eases some of the regulations passed after the 2008 financial crisis. President Donald Trump is expected to sign it into law. Real estate investment trusts, utilities, and other stocks that pay large dividends rose. Those stocks are often considered alternatives to bonds, and investors who want income often buy them when bond yields decrease.

Comcast said it is preparing an all-cash offer for Twenty-First Century Fox's entertainment divisions, and said it plans to bid more than the $52.4 billion Disney offered. Comcast didn't disclose other details about its plans. Fox rose 1.6 percent to $38.77 while Comcast fell 1.9 percent to $31.88, and Disney slid 1.1 percent to $102.89

Benchmark U.S. crude lost 0.5 percent to $71.84 per barrel in New York. Brent crude, used to price international oils, rose 0.3 percent to $79.80 a barrel in London.

Wholesale gasoline lost 0.4 percent to $2.26 a gallon. Heating oil rose 0.4 percent to $2.29 a gallon. Natural gas added 0.2 percent to $2.91 per 1,000 cubic feet.

The dollar dropped to 110.07 yen from 111.02 yen. The euro fell to $1.698 from $1.1779.

Gold lost 0.2 percent to $1,289.60 an ounce. Silver fell 1 percent to $16.41 an ounce. Copper plunged 2 percent to $3.07 a pound.

Japan's benchmark Nikkei 225 fell 1.2 percent and South Korea's Kospi gained 0.3 percent. Hong Kong's Hang Seng lost 1.8 percent.

 

[bigdog]

https://www.usnews.com/news/busines...res-mixed-after-fed-gives-wall-street-a-boost

Cancellation of Korea Summit Sends Stocks on Bumpy Ride
U.S. stocks slump after President Donald Trump said he'd canceled a summit with North Korean leader Kim Jong Un, although they later recovered most of their losses.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stocks finished mostly lower Thursday as energy companies skidded along with oil prices. The market dropped after President Donald Trump said he canceled a meeting with North Korean leader Kim Jong Un, but recovered most of those losses.

Crude oil futures and energy companies fell as investors reacted to reports that OPEC nations may start producing more oil. Banks fell as interest rates edged lower, and car companies including Fiat Chrysler and Toyota dropped as the Trump administration considered tariffs on imported cars and car parts, a move that was criticized by the governments of China, Japan and the European Union.

The Dow Jones industrial average fell as much as 280 points in the morning, more than 1 percent, after Trump said the June meeting with Kim was off. In a letter, Trump said he was canceling the summit because of "tremendous anger and open hostility" in a recent statement by a North Korean official. Technology companies, which have led the market in recent years, took some of the biggest losses and defense contractors climbed.

The market gradually recovered those losses, and Trump later told reporters that the meeting could still happen in June or later on. Stocks finished only slightly lower than where they were before Trump's initial announcement.

Chris Zaccarelli, chief investment officer for the Independent Advisor Alliance, said investors were troubled at first by Trump and Kim's statements about a possible nuclear war, but they've gotten used to it, which means the market doesn't react as much to their statements.

"The first time the market hears these threats there's a large reaction and after that there's less reaction," he said. "It's just rhetoric right now and there's no actual military conflict, (so) these moves are kind of short-lived."

The S&P 500 index dropped 5.53 points, or 0.2 percent, to 2,727.26. The Dow Jones industrial average lost 75.05 points, or 0.3 percent, to 24,811.76. The Nasdaq composite dipped 1.53 points, less than 0.1 percent, to 7,424.43. The Russell 2000 index of smaller-company stocks edged up 0.61 points to 1,628.22.

Benchmark U.S. crude lost 1.6 percent to $70.71 per barrel in New York. Brent crude, used to price international oils, fell 1.3 percent to $78.79 a barrel in London.

Various news outlets reported that the nations of the OPEC cartel might start producing more oil in response to reduced exports from Venezuela and Iran. Greater supplies would send prices lower. Energy companies have slipped in recent days as investors anticipated that possibility. On Thursday Exxon Mobil lost 2.3 percent to $80.27 and Chevron dipped 1.6 percent to $126.61.

OPEC and a group of other major oil producers cut production last year in response to a steep drop in oil prices. U.S. crude had fallen from more than $100 a barrel in mid-2014 to as little as $26 a barrel in early 2016. On Monday U.S. crude peaked at $72.24 a barrel, its highest price since late 2014.

The two sides agreed in March after Trump and Kim traded public insults and threats for months.

Still, defense companies fared better than the rest of the market. Raytheon rose 1.3 percent to $213.94 and Northrop Grumman gained 1.4 percent to $332.81.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.97 percent from 2.99 percent, and banks traded lower. Metals prices also increased as the dollar weakened. Gold gained 1.1 percent to $1,304.40 an ounce and silver jumped 1.7 percent to $16.69 an ounce. Copper picked up 0.8 percent to $3.10 a pound.

The Trump administration plans to conduct an investigation into imported vehicles and automotive parts on national security grounds. A European Union official said the proposal would violate World Trade Organization rules and Japan and China also criticized the proposal. Those same grounds are the justification for proposed tariffs on imported aluminum and steel, and the U.S. will decide by June 1 whether to impose tariffs on steel and aluminum from Europe.

Fiat Chrysler lost 0.9 percent to $22.26 and Tata Motors fell 5.8 percent to $21.09. Toyota shares fell 1.8 percent to $132.44. U.S. rivals Ford rose 1.6 percent to $11.62 and General Motors added 1.4 percent to $38.39.

"I'm hoping that what they're doing is trying to put a little pressure on the NAFTA negotiations and this will be a way to get Mexico and Canada to agree," said Zaccarelli, of the Independent Advisor Alliance.

In other energy trading, wholesale gasoline fell 1.2 percent to $2.23 a gallon and heating oil lost 1 percent to $2.27 a gallon. Natural gas rose 0.9 percent to $2.94 per 1,000 cubic feet.

The dollar fell to 109.28 yen from 110.07 yen. The euro rose to $1.1727 from $1.1698.

Germany's DAX lost 0.9 percent and the FTSE 100 in Britain fell 0.9 percent as well. The CAC 40 in France shed 0.3 percent. Japan's Nikkei 225 index fell 1.1 percent and the Kospi in South Korea slipped 0.2 percent. In Hong Kong, the Hang Seng gained 0.3 percent.

 

[bigdog]

https://www.usnews.com/news/busines...cks-mixed-as-nkoreas-restraint-eases-concerns

Stocks Dip as Oil Prices and Energy Companies Fall Sharply
A sharp drop in crude oil prices sends energy companies skidding to their worst losses in months, weighing down the broader stock market.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Energy companies and oil prices took their worst losses in months Friday on reports OPEC countries plan to produce more oil soon. Stock indexes finished an indecisive week with small losses.

U.S. crude oil sank 4 percent after multiple reports indicated that Russia and OPEC could start producing more oil soon. They cut production at the start of 2017 following a big buildup in supplies that had pushed prices lower.

In November they extended that cut through the end of 2018, but according to reports this week, they might agree to start raising production in June. U.S. crude finished at a three-year high Monday and has fallen 6 percent since then.

The drop in the price of oil has meant sharp losses for energy companies, but it gave airlines a boost as investors anticipated lower fuel costs. Bond yields declined again, which hurt banks but helped dividend-payers like household goods makers.

Wall Street also focused on quarterly results from retailers. Gap plunged after it said its namesake brand is still struggling, but Foot Locker soared after it said sales of premium shoes improved.

Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, said energy companies and oil prices had made big gains lately and were due to slow down. He said the growing global economy is going to help the industry in the longer term.

"If you look at the sectors that are outperforming, it's those that tend to be pro-growth," he said, especially technology and consumer-focused companies. Over the last month that growth, and the strong company profits that come with it, have not translated into gains for stocks. Sandven said that could change when companies start reporting their second-quarter results in July.

The S&P 500 index slid 6.43 points, or 0.2 percent, to 2,721.33. The Dow Jones industrial average fell 58.67 points, or 0.2 percent, to 24,753.09. The Nasdaq composite climbed 9.42 points, or 0.1 percent, to 7,433.85 as consumer-focused companies moved higher. The Russell 2000 index of smaller-company stocks lost 1.29 points, or 0.1 percent, to 1,626.93.

U.S. markets will be closed Monday for the Memorial Day holiday.

U.S. crude dropped to $67.88 a barrel in New York. Brent crude, used to price international oils, fell 3 percent to $76.44 a barrel in London. Increased oil production and lower prices could reduce profits for energy companies. Exxon Mobil fell 1.9 percent to $78.71 and Chevron gave up 3.5 percent to $122.19.

Among airlines, Delta gained 2.7 percent to $55.87 and American rose 3.1 percent to $44.91. The stocks have skidded over the last few months as the rising price of oil increased their fuel costs and cut into their profits. Delta stock is flat in 2018 and American Airlines has fallen 14 percent.

Bond prices kept rising. The yield on the 10-year Treasury note fell to 2.93 percent form 2.98 percent.

The falling yields helped household goods makers break out of their recent struggles. Toothpaste maker Colgate-Palmolive added 2 percent to $63.75 and cereal maker Kellogg rose 2.7 percent to $65.23. The stocks, and others that pay large dividends, have lagged behind the rest of the market as investors found technology firms and consumer-focused companies more attractive thanks to signs of strong growth in the U.S. economy.

Gap dropped 14.6 percent to $28.15 following a drop in sales for Gap brand stores. Gap has been shifting focus away from the namesake brand because it's not connecting with shoppers and has struggled to separate itself from rivals. Its Old Navy and Banana Republic brands fared better. Elsewhere, discount retailer Ross Stores gave up 6.8 percent to $77.34 after it gave disappointing forecasts for the current quarter and the full year.

Foot Locker blew past estimates and said sales of premium shoes continue to improve, which has been a major concern for it and other sporting goods companies. The stock jumped 20.2 percent to $54.74. Shoe Carnival leaped 20.7 percent to $31.80 after it beat expectation in the first quarter. It, too, said athletic shoe sales improved.

Fiat Chrysler fell 2 percent to $21.82 after saying it's recalling 4.8 million vehicles in the U.S. because in rare circumstances drivers may not be able to turn off the cruise control. The company warned owners not to use cruise control until the vehicles can be fixed with a software update. Drivers can still stop the cars using the brakes.

Wholesale gasoline slid 2.3 percent to $2.18 a gallon. Heating oil lost 2.5 percent to $2.21 a gallon. Natural gas remained at $2.94 per 1,000 cubic feet.

Gold slipped 0.1 percent to $1,303.70 an ounce. Silver lost 0.8 percent to $16.55 an ounce. Copper fell 0.6 percent to $3.08 a pound.

The dollar rose to 109.37 yen from 109.28 yen. The euro fell to $1.1669 from $1.1727.

Germany's DAX rose 0.6 percent and the CAC 40 in France fell 0.1 percent. Britain's FTSE 100 rose 0.2 percent. Japan's benchmark Nikkei 225 index rose 0.1 percent and South Korea's Kospi lost 0.2 percent. Hong Kong's Hang Seng shed 0.6 percent.

6421

 

[bigdog]

NYSE CLOSED MONDAY MAY 28 FOR MEMORIAL HOLIDAY

https://www.usnews.com/news/busines...advance-as-markets-mull-north-korea-italy-oil

European Stocks Drop Amid Italy Uncertainty, Oil Falls Again
European shares drop on concern about Italian politics, after Asian stocks rise; oil price extends last week's drop on expectation of output increase
By KELVIN CHAN, AP Business Writer

HONG KONG (AP) — European stock markets fell Monday after small gains in Asia as investors digested political uncertainty in Italy, while crude oil fell further amid expectations for output increases. Markets remained closed for holidays in the U.S. and Britain.

KEEPING SCORE: France's CAC 40 fell 0.6 percent to 5,508.93 and Germany's DAX dropped 0.6 percent to 12,863.46. Italy's benchmark FTSE MIB opened higher but drifted lower to close down 2.1 percent at 21,932.69. Japan's Nikkei 225 edged 0.1 percent higher to 22,481.09 and South Korea's Kospi rose 0.7 percent to 2,478.96. Hong Kong's Hang Seng rose 0.7 percent to 30,792.26 while the Shanghai Composite in mainland China dipped 0.2 percent to 3,135.08. Australia's S&P/ASX 200 fell 0.5 percent to 6,004.00.

ITALIAN POLITICS: The euro was volatile, touching a six-month low after Italy's president vetoed a euroskeptic candidate for economy minister proposed by leaders of two populist parties trying to form a government. President Sergio Mattarella said Sunday he was refusing to appoint Paolo Savona, whose policies could rattle nervous markets and further inflate the country's staggering debt load. Instead, he named an economist, Carlo Cottarelli, to lead the country until new elections. While avoiding a populist government that investors had worried about, the move means more political uncertainty. The euro fell to $1.1627 from $1.1652 on Friday.

ANALYST TAKE: "The euro has had a rough go lately, reflecting a firehose of negative news headlines. It started with the loss of data momentum and now political risks have injected a new risk premium. We still believe that Italy doesn't pose systemic risks to the single currency," said Mark McCormick, the North American Head of FX Strategy at TD Securities.

NORTH KOREA: President Donald Trump's latest reversal on a summit with North Korean leader Kim Jong Un and South Korean President Moon Jae-in's impromptu meeting with Kim on Saturday eased fears over the Korean Peninsula's nuclear crisis. Trump tweeted that a U.S. team is in North Korea to make arrangements for the planned June 12 summit in Singapore, days after he said the U.S. was withdrawing from the meeting. Meanwhile, Moon revealed details about his surprise meeting with Kim in the Panmunjom truce village, saying Kim had committed to sitting down with Trump and to a "complete denuclearization of the Korean Peninsula."

CURRENCIES: The dollar slipped to 109.32 yen from 109.40 yen late Friday. The pound was roughly flat at $1.3309.

ENERGY: Oil futures resumed tumbling after taking their worst losses in months on Friday, battered by reports that OPEC countries and Russia could start pumping more oil soon. Benchmark U.S. crude tumbled $1.45 a barrel, or 1.7 percent, to $66.43 a barrel in electronic trading on the New York Mercantile Exchange. The contract dropped $2.83, or 4 percent, to settle at $67.88 on Friday. Oil producing countries cut output at the start of 2017 following a big supply buildup and agreed last year to extend those cuts through the end of 2018, but according to reports last week, they might agree to start raising production in June.

 

[bigdog]

https://www.usnews.com/news/busines...advance-as-markets-mull-north-korea-italy-oil

Italian Turmoil Hits Global Markets, Sending Stocks Plunging
Stocks in Europe and the US skid as Italy appears headed for another round of elections, potentially causing more instability in the euro.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Stocks in the U.S. and Europe sank Tuesday following political turmoil in Italy, which stoked fears of instability in the euro bloc.

Investors sold stocks and prices for U.S. government bonds surged as investors shifted money into lower-risk investments. Bond yields dropped, and with them, interest rates on mortgages and other kinds of loans. Banks plunged as Wall Street expected they would earn thinner profits.

Major exporters like technology and industrial companies and big drug and medical device makers also skidded. Those companies depend on strong sales outside the U.S.

Investors dumped Italian government bonds, driving borrowing costs sharply higher for that country and rekindling fears of more financial strain for Europe's third-largest economy. They bought German and British government bonds instead, which are seen as more stable.

The political upheaval in Italy is likely to lead to new elections in the next few months, and investors are interpreting the new vote as a referendum and that Italy could move closer to abandoning the currency if populist parties win the election. It's not clear if that would happen, but if it did, it would have major implications for the European financial system and its economy.

"Eurozone membership will be at the forefront of the next election," said Alicia Levine, the head of global investment strategy at BNY Mellon Investment Management. "Should Italy leave the eurozone, it's clearly bad for European assets and it's bad for the European banking system."

New jitters about the stability of the euro sent the currency's value against the dollar to its lowest level in almost a year. The dollar rose to 108.24 yen from 109.37 yen. The euro sank to $1.1531, its lowest since July, from $1.1669.

The S&P 500 index sank 31.47 points, or 1.2 percent, to 2,689.86. The Dow Jones industrial average turned negative for the year as it lost 391.64 points, or 1.6 percent, to 24,361.45. It was down as much as 505 earlier. In Europe, Italy's benchmark stock index plunged 2.7 percent.

Smaller U.S. companies, which tend to be more domestically focused than the large multinationals in the Dow, fared much better than the rest of the market. The Russell 2000 index fell far less than the Dow average, giving up 3.28 points, or 0.2 percent, to 1,623.65.

The Nasdaq composite fell 37.26 points, or 0.5 percent, to 7,396.59.

U.S. markets were closed Monday for the Memorial Day holiday.

Italian President Sergio Mattarella picked Carlo Cottarelli for prime minister after the anti-establishment 5-Star Movement and right-wing League refused to withdraw an anti-euro candidate as economy minister. That ended their attempt to establish a government after inconclusive elections in March. Cottarelli is likely to lose a vote of no confidence in parliament, which would mean another round of elections.

Investors dumped Italian stocks and bonds as a result. Yields on Italian government bonds soared as their prices declined. The yield on the 10-year Italian government bond jumped to 3.10 percent from 2.69 percent, a huge move. At the beginning of May the yield was just 1.78 percent. The sharp move higher reflects weakening confidence among investors in Italy's government.

The German DAX lost 1.5 percent and Britain's FTSE 100 and the French CAC 40 both sank 1.3 percent. Some of the worst losses went to European banks: Germany's Deutsche Bank dropped 6.2 percent to $11.30 and Banco Santander of Spain lost 9.1 percent to $5.31.

"Uncertainty and the unknowns themselves affect the real economy," said Levine, of Bank of New York Mellon. "You've going to have less investment, you're going to have a decline in consumer spending, you've going to have, on the margin, less consumer activity affecting growth."

Spain was facing political turbulence of its own. That country's parliament will hold a vote of no confidence in Prime Minister Mariano Rajoy after graft convictions of businesspeople and officials tied to his conservative Popular Party. The Spanish IBEX 35 sank 2.5 percent.

U.S. government bond prices jumped as investors moved money into lower-risk assets. The yield on the 10-year Treasury fell to 2.78 percent, its lowest since early April, from 2.93 percent. JPMorgan Chase dropped 4.3 percent to $105.93 and Bank of America fell 4 percent to $28.96.

U.S. crude oil fell 1.7 percent to $66.73 a barrel in New York. Oil prices have slumped in the last week following reports that OPEC countries and Russia could start pumping more oil soon. Brent crude, used to price international oils, rose 0.1 percent to $75.39 a barrel in London.

Wholesale gasoline gave up 1.7 percent to $2.14 a gallon. Heating oil shed 1.1 percent to $2.19 a gallon. Natural gas dropped 2.2 percent to $2.88 per 1,000 cubic feet.

Gold fell 0.4 percent to $1,299 an ounce. Silver lost 1 percent to $16.37 an ounce. Copper gave up 0.5 percent to $3.06 a pound.

In Asia, Japan's Nikkei 225 fell 0.6 percent while the South Korean Kospi lost 0.9 percent. Hong Kong's Hang Seng index plunged 1 percent.

 

[bigdog]

https://www.usnews.com/news/busines...anguish-as-italian-turmoil-hits-world-markets

Stock Markets Reverse Course and Surge as Italy Fears Fade
U.S. stocks recover most of their sharp losses from a day earlier and bond yields turn higher as investors hope Italy might be able to avoid a new round of elections.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Banks and energy companies surged Wednesday and smaller companies made huge gains as stocks got back almost all the ground they lost the day before. Investors reversed course as they hoped Italy would be able to avoid a new round of elections after all.

Financial companies rallied as bond yields turned higher and energy companies rose along with U.S. crude oil, which busted out of a five-day losing streak. The shift came after Carlo Cottarelli, nominated to be Italy's next prime minister, said there were "new possibilities" to form a government.

Stocks had plunged the previous day as investors expected gridlock to be resolved with new elections that could have turned into a yes-or-no referendum deciding whether Italy would continue to use the euro.

JJ Kinahan, chief market strategist for TD Ameritrade, said the market often reacts irregularly to political events like the uncertainty in Italy or tensions between the U.S. and North Korea: stocks often fall fast and then recover in quick fashion. That process can sometimes repeat itself weeks or months later.

"If there's no follow-up news, they tend to come back near where they started," he said. "I wouldn't count on it being done for the summer."

The S&P 500 index jumped 34.15 points, or 1.3 percent, to 2,724.01. The Dow Jones industrial average climbed 306.33 points, or 1.3 percent, to 24,667.78. The Nasdaq composite gained 65.86 points, or 0.9 percent, to 7,462.45.

While the S&P 500 and Nasdaq recovered Tuesday's losses and then some, smaller and more U.S.-focused companies did ever better as investors continued to worry about trade. Small companies finished with minor losses Tuesday, and on Wednesday they made even bigger gains than larger multinationals did. The Russell 2000 index surged 24.34 points, or 1.5 percent, and closed at a record high of 1,647.99.

The Chinese government criticized the U.S., which had renewed a threat to raise duties on some imports from China. At the same time, officials from the U.S. and European Union held talks on the tariffs the Trump administration has proposed on European steel and aluminum. European Union negotiations seemed pessimistic and said they expected the U.S. to announce a final decision Thursday.

China and the EU have both said they will react to new tariffs imposed by the U.S. with duties of their own, which has raised the prospect of greater tensions and the possibility of trade wars. Kinahan, of TD Ameritrade, said investors feel smaller companies are less vulnerable.

Multinational companies have had a rough ride lately as investors reacted to trade tensions by shifting money into smaller and more U.S.-focused companies.

"Much of their business is done domestically, so the tariffs shouldn't affect them as badly," he said. "But even if the tariffs don't happen, many of those stocks are performing well."

Italy's FTSE MIB stock index climbed 2.1 percent after a 2.7 percent drop a day earlier. Prices for Italian government bonds also rose, sending yields down following a huge surge the day before.

The euro rose to $1.1648 from $1.1531, which was its lowest level in almost a year. The dollar rose to 108.85 yen from 108.24 yen.

Germany's DAX climbed 0.9 percent while the FTSE 100 index in Britain rose 0.7 percent. The CAC 40 in France lost 0.2 percent.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.84 percent from 2.79 percent. Interest rates rose and bank stocks recovered about half of their losses from Tuesday. When rates rise, banks can make more money on mortgages and other types of loans.

Energy companies rose as U.S. crude oil climbed 2.2 percent to $68.21 per barrel in New York. Brent crude, used to price international oils, added 2.8 percent to $77.50 a barrel in London.

Exxon Mobil rose 3.9 percent to $81.50. That was its biggest one-day gain since September 2016.

Oil prices fell 7.6 percent in five days following reports OPEC countries and Russia might start producing more oil soon. Those countries cut production at the start of 2017, which helped take U.S. crude from about $50 a barrel in late 2016 to more than $70 this month. They had agreed to keep production at its current levels until the end of this year, but upheaval in Venezuela and new sanctions on Iran could change their plans.

Wholesale gasoline rose 1.9 percent to $2.18 a gallon. Heating oil gained 2.1 percent to $2.23 a gallon. Natural gas slid 0.6 percent to $2.89 per 1,000 cubic feet.

Investors also reacted to more earnings from retailers. Dick's Sporting Goods soared 25.8 percent to $38.35 after it raised its annual profit forecast. Its first-quarter report was better than expected thanks in part to strong online sales. Its decision to stop selling assault rifles and cease selling guns to people under 21 didn't appear to affect its business.

Clothing company Chico's FAS plunged 18.2 percent to $8.17 after its profit fell short of expectations and luxury retailer Michael Kors dropped 11.4 percent to $60.41 following a disappointing forecast for the year.

Gold rose 0.2 percent to $1,301.50 an ounce. Silver added 1 percent to $16.54 an ounce. Copper gained 0.2 percent to $3.07 a pound.

Japan's Nikkei 225 stock index dropped 1.5 percent and the Kospi of South Korea dropped 2. The Hang Seng in Hong Kong slipped 1.4 percent.

 

[bigdog]

https://www.usnews.com/news/busines...track-wall-street-rebound-as-italy-fears-fade

Stocks Skid as US Imposes Tariffs and Allies Retaliate
U.S. stocks slide after the Trump administration said it is imposing tariffs on steel and aluminum imported from Europe, Canada and Mexico.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stocks skidded Thursday after the Trump administration said it is imposing tariffs on steel and aluminum imported from Europe, Canada and Mexico. Canada and Mexico responded with tariffs of their own, and the European Union is expected to follow suit.

American steel makers mostly rose, while industrial companies fell as they face the prospect of paying more for metals they use to make aircraft and machinery. Companies that make household items took some of the worst losses, as products including orange juice and peanut butter might be hit with European tariffs.

Mexico is planning duties on U.S. exports including steel, pork products and sausages, while Canada said it will put reciprocal tariffs on steel and aluminum. The European Union also said it will dispute the U.S. tariffs with the World Trade Organization, which could take years.

Meanwhile the parties will likely keep negotiating, and contentious talks between the U.S. and China are continuing as well. And while experts say a trade war remains a remote possibility, all of those disputes have been weighing on the market for months, and the uncertainty that is creating has real effects.

David Kelly of JPMorgan Funds said the dragged-out process is discouraging businesses from investing because they don't want to build a product only to see it targeted by tariffs.

"You can do great harm to an economy just by leaving people up in the air about what the final deal is going to be," said Kelly, the chief global strategist of JPMorgan Funds. He said the uncertainty is undoing some of the effects of the recent corporate tax cut.

The S&P 500 index lost 18.74 points, or 0.7 percent, to 2,705.27. The Dow Jones industrial average fell 251.94 points, or 1 percent, to 24,415.84.

The Nasdaq composite dipped 20.34 points, or 0.3 percent, to 7,442.12 as technology companies like Alphabet and Facebook bucked the market's decline. The Russell 2000 index, which is made up of smaller companies that tend to do more business in the U.S., slipped 14.32 points, or 0.9 percent, to 1,633.67. It closed at a record high Wednesday.

The U.S. tariffs go into effect Friday. The Trump administration had announced them earlier but delayed their implementation to allow for talks with the EU. U.S. Steel jumped 1.7 percent to $36.87 and Century Aluminum gained 3.4 percent to $17.72. They made larger gains earlier in the day, but slipped after Canada announced reciprocal tariffs on steel and aluminum from the U.S. starting July 1.

Boeing dropped 1.7 percent to $352.16 and Caterpillar fell 2.3 percent to $151.91 while farm equipment maker Deere fell 3.6 percent to $149.51. The tariffs could increase the cost of the metals they use to make their products, and tariffs in Europe or other markets could hurt their sales.

Mexico said it would penalize U.S. imports including flat steel, cheese, fruits, pork bellies and sausage. Dairy maker Dean Foods fell 4.3 percent to $9.57 and Tyson Foods, which makes products including Jimmy Dean sausages, lost 3.9 percent to $67.47.

French officials said the EU will decide exact countermeasures in the coming weeks. European officials have threatened to retaliate against U.S. products including orange juice, peanut butter, clothing, motorcycles and bourbon. Harley-Davidson fell 2.2 percent to $41.08. Hormel, which makes Skippy peanut butter, declined 3.4 percent to $35.89.

GM said SoftBank is taking a 20 percent stake in the GM Cruise automated division. General Motors stock jumped 12.9 percent to $42.70. That was its biggest gain since GM went public again in 2010 after emerging from bankruptcy.

Discount retailers Dollar Tree and Dollar General both stumbled after they said inclement weather hurt their business in the first quarter of the year. Their results fell short of Wall Street projections and Dollar Tree cut its profit forecast for the year.

Dollar Tree fell 14.3 percent to $82.59 and Dollar General gave up 9.4 percent to $87.48.

Deutsche Bank slumped after the Wall Street Journal reported that the Federal Reserve determined the bank's U.S. business is in "troubled condition." The stock lost 4.2 percent to $11.08.

U.S. crude oil slipped 1.7 percent to $67.04 a barrel in New York. Brent crude, used to price international oils, added 0.1 percent to $77.59 per barrel in London.

Wholesale gasoline fell 1.1 percent to $2.16 a gallon. Heating oil lost 1.8 percent to $2.19 a gallon. Natural gas rose 2.3 percent to $2.95 per 1,000 cubic feet.

Bond prices edged higher. The yield on the 10-year Treasury note fell to 2.83 percent from 2.85 percent and financial companies fell.

Gold lost 0.1 percent to $1,300.10 an ounce. Silver fell 0.5 percent to $16.46 an ounce. Copper stayed at $3.07 a pound.

The dollar fell to 108.64 yen from 108.85 yen. The euro rose to $1.1685 from $1.1654.

The DAX in Germany lost 1.4 percent and France's CAC 40 fell 0.5 percent. The British FTSE 100 index dipped 0.1 percent.

Asian stocks rose following big gains in the U.S. the day before. Japan's Nikkei 225 index gained 0.8 percent and Hong Kong's Hang Seng index jumped 1.4 percent. South Korea's Kospi advanced 0.6 percent.

 

[bigdog]

https://www.usnews.com/news/busines...rn-lower-after-trade-jitter-losses-on-wall-st

Stocks, Interest Rates Climb as Job Market Keeps Improving
Stocks rose and interest rates shot higher after a report showed that the strengthening U.S. job market remains on course, even with worries high around the world about a possible trade battle.

By STAN CHOE, AP Business Writer

NEW YORK (AP) — Stocks climbed Friday after a report showed the U.S. job market is still revving higher, even with the specter of a possible trade war hanging over markets around the world.

The better-than-expected news on jobs helped the S&P 500 more than recover all its losses from earlier in the week. Interest rates and the value of the dollar also rose on expectations that the Federal Reserve got more justification to continue raising interest rates steadily, with its next decision due in about a week and a half.

Beyond the jobs report, stronger-than-expected readings came in on U.S. manufacturing growth and construction spending. They helped turn attention away from the worries about global trade tensions and European politics that had dragged on stocks in recent weeks.

"It's refreshing that some strong economic data today took some focus off the trade rhetoric," said Jon Adams, senior investment strategist at BMO Global Asset Management. "It's been a banner day for U.S. data overall. You look at the payrolls report, and it's hard to find too much negative in there."

The strong reports raise the likelihood that the Federal Reserve may increase short-term interest rates four times this year, rather than just three. Higher rates can hurt stock prices, but Adams said investors appear relatively prepared for the possibility "because the Fed is hiking for the right reasons."

The S&P 500 index rose 29.35 points, or 1.1 percent, to 2,734.62. For the week, it climbed 0.5 percent after scrambling back from a loss of more than 1 percent earlier.

The Dow Jones industrial average jumped 219.37, or 0.9 percent, to 24,635.21, and the Nasdaq composite rose 112.21, or 1.5 percent, to 7,554.33. The Russell 2000 of small-company stocks rose 14.37, or 0.9 percent, to 1,647.98.

Twice as many stocks rose as fell on the New York Stock Exchange.

Employers added 223,000 jobs last month, more than economists expected and a pickup from April's hiring rate of 159,000. Wages for workers also accelerated, with pay up 2.7 percent from a year ago. That's a bit faster than April's 2.6 percent wage growth.

President Donald Trump raised eyebrows when he sent out a tweet ahead of the jobs report's release that suggested it may be a good one. Treasury yields and the dollar rose modestly following the tweet, although they had steeper gains after the official release. Because the jobs report typically moves markets, government officials are not supposed to comment on it beforehand.

The encouraging data helped push the yield on the 10-year Treasury note to 2.90 percent from 2.86 percent late Thursday. The two-year yield, whose movements are dictated more by expectations for Fed movement, rose to 2.48 percent from 2.44 percent.

A quick beneficiary of higher rates can be the banking industry, which would reap bigger profits from making loans. Financial stocks in the S&P 500 rose 1.1 percent.

On the flip side were companies that pay big dividends. Higher rates make bonds more attractive to income investors and pull buyers away from dividend-paying stocks. Utility stocks in the S&P 500 fell 1.5 percent for the largest loss among the index's 11 sectors.

Another force helping stocks on Friday was relief that politicians in Italy appeared to avoid a scenario that investors had been fearing would hit markets.

Italy's anti-establishment 5-Star Movement and right-wing League succeeded Thursday in forming western Europe's first populist government. It will be headed by a political novice whose first try was rejected four days earlier as too risky for the Italian economy, but the outcome avoids an interim government and a swift return to the polls that investors had feared could end up being a referendum on Italy staying with the euro currency.

In European stock markets, France's CAC 40 rose 1.2 percent, and Germany's DAX climbed 0.9 percent. The FTSE 100 rose 0.3 percent.

In Asia, Japan's Nikkei 225 slipped 0.1 percent, the Hang Seng in Hong Kong rose 0.1 percent and the Kospi in South Korea climbed 0.7 percent.

In commodities markets, benchmark U.S. crude fell $1.23 to settle at $65.81 per barrel. Brent crude, the international standard, lost 77 cents to settle at $76.79.

Natural gas rose a penny to $2.96 per 1,000 cubic feet, heating oil fell 3 cents to $2.18 per gallon and wholesale gasoline lost 2 cents to $2.14 per gallon.

Gold slipped $5.40 to settle at $1,299.30 per ounce, silver dipped 2 cents to $16.44 per ounce and copper rose 3 cents to $3.10 per pound.

The dollar rose to 109.51 Japanese yen from 108.64 yen late Thursday. The euro fell to $1.1662 from $1.1685, and the British pound rose to $1.3346 from $1.3289.

6775

 

[bigdog]

https://www.usnews.com/news/busines...ally-on-jobs-data-despite-trade-talks-impasse

Technology Gains Drive Nasdaq Composite to an All-Time High
Technology companies including Apple and Alphabet post solid gains, driving the Nasdaq composite index to an all-time high.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stocks rose for the second consecutive day Monday with technology companies, retailers and household goods companies in the lead. Indexes of technology companies and smaller, more U.S.-focused companies both hit all-time highs.

Major technology companies including Google's parent company, Alphabet, made big gains, while Apple rose as it previewed new features and software updates at its Worldwide Developers Conference. Microsoft edged higher after it said it will buy the coder platform GitHub, while new privacy concerns weighed on shares of Facebook.

Retailers including Target, Walmart and Under Armour rallied, as did Amazon. Energy companies fell as the price of oil continued to slide.

After an up and down week last week, the S&P 500 index, a market benchmark used by many index funds, is on its first winning streak in three weeks. The technology-heavy Nasdaq composite finished at a record high, above a mark it set March 12, while the smaller Russell 2000 surpassed a record it set last week.

Last week investors reacted to political turmoil in Italy and rising trade tensions as the U.S. continued to hold talks with Chinese officials and placed tariffs on steel and aluminum imported from Europe, Mexico and Canada.

Stocks have wobbled in the last few months as investors worried that tariffs and other barriers to trade will reduce economic growth and corporate profits. But Wall Street has mostly treated the tough talk and proposed tariffs as a negotiating tactic. Invesco Chief Global Market Strategist Kristina Hooper said the U.S. crossed an important dividing line last week when, after months of talks, its aluminum and steel import duties went into effect.

"It appears that will lead to some significant retaliatory tariffs," she said. "Markets seem to treat it as if it's just rhetoric and it's just a bargaining tool, and my view is that that is foolhardy."

The S&P 500 climbed 12.25 points, or 0.4 percent, to 2,746.87. The index rose 1.1 percent Friday after a strong jobs report. The Dow Jones industrial average rose 178.48 points, or 0.7 percent, to 24,813.69. The Nasdaq composite gained 52.13 points, or 0.7 percent, to 7,606.46.

The Russell 2000 index of smaller-company stocks gained 5.39 points, or 0.3 percent, to 1,653.37.

Apple climbed 0.8 percent to $191.83 and Alphabet gained 1.6 percent to $1,153.04. Chipmaker Advanced Micro Devices added 3.1 percent to $14.85. Microsoft rose 0.9 percent to $101.67 after the company said it will pay $7.5 billion in stock for GitHub. Around 27 million software developers around the world use GitHub to share code and build businesses.

Among retailers, Target gained 4.9 percent to $76.35 and Walmart picked up 2.9 percent to $85.42 after it agreed to sell an 80 percent stake in its struggling Brazilian business.

Hooper, of Invesco, said Wall Street is overlooking the threat that tariffs pose because it's focused on solid economic news from the U.S.

"We have enough positive economic data that it's easy enough to put blinders on when it comes to threats like protectionism," she said.

The New York Times reported Sunday that Facebook struck data-sharing deals with at least 60 device makers, including Apple and Amazon, as it tried to get its app onto smartphones, and that the device companies were able to access users' friends without their explicit consent.

That renewed some investors' concerns about Facebook's handling of user data, and the stock lost 0.4 percent to $193.28.

Facebook said it maintained tight control over the technology and is not aware of any abuse by the companies that it teamed with. The stock skidded in March following allegations a firm linked to the Trump campaign improperly harvested personal data millions of Facebook users, but Wall Street's concerns about the stock gradually faded and Facebook closed at an all-time high Friday.

Energy companies traded lower as benchmark U.S. crude dropped 1.6 percent to $64.75 a barrel in New York. Brent crude, used to price international oils, fell 2 percent to $75.29 per barrel in London.

Wholesale gasoline lost 1 percent to $2.12 a gallon. Heating oil slid 1.1 percent to $2.15 a gallon. Natural gas fell 1.1 percent to $2.93 per 1,000 cubic feet.

Companies reported results from cancer drug studies at the annual meeting of the American Society of Clinical Oncology. Nektar Therapeutics plunged 41.8 percent to $52.57 after it disclosed data from a potential treatment for pancreatic cancer. Analyst Debjit Chattopadhyay of H.C. Wainwright said investors were concerned by mixed results from the study and a lack of information and a lung cancer drug study.

Nektar had made huge gains since early November. Shares of its partner Bristol-Myers Squibb lost 3.1 percent to $51.56.

Bond prices dipped. The yield on the 10-year Treasury note rose to 2.94 percent from 2.90 percent late Friday.

Gold dipped 0.2 percent to $1,297.30 an ounce. Silver fell 0.1 percent to $16.43 an ounce. Copper gained 1.2 percent to $3.13 a pound.

The dollar rose to 109.58 yen from 109.51 yen. The euro rose to $1.1719 from $1.1662.

Germany's DAX rose 0.4 percent and France's CAC 40 added 0.2 percent. Britain's FTSE 100 climbed 0.5 percent. The benchmark Nikkei 225 in Japan rose 1.4 percent and the South Korean Kospi gained 0.4 percent. Hong Kong's Hang Seng rallied 1.7 percent.

 

[bigdog]

https://www.usnews.com/news/busines...asian-markets-mixed-as-trade-war-fears-set-in

US Stocks Edge Higher as Technology, Retail Companies Rise
U.S. stock indexes finish mostly higher and the Nasdaq composite closes at another record high as technology firms, retailers and smaller companies continue to rise.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stocks finished mostly higher Tuesday as weeks of up-and-down trading, much of it related to trade tensions, gave way to smaller moves. Technology companies, retailers, and U.S.-focused companies kept rising while banks fell with interest rates.

The market spent the day alternating between small gains and losses. Technology companies like Apple and eBay rose for a third straight day and the Nasdaq composite again set an all-time high.

The Labor Department said job openings increased in April, which could help lead to higher pay and greater consumer spending. Retailers climbed, and smaller ones fared especially well following some strong first-quarter results. Larger companies like Amazon and Macy's also rose.

"When people have extra income they're going to spend it on discretionary goods," said Jason Draho, the head of asset allocation for UBS. "The jobs data would suggest a lot of job openings (and) that's going to lead to higher wage growth."

However banks fell along with interest rates and health care companies also traded lower. Starbucks fell after it said longtime Chairman Howard Schultz is leaving the company.

The S&P 500 added 1.93 points, or 0.1 percent, to 2,748.80. The Dow Jones industrial average slipped 13.71 points, or 0.1 percent, to 24,799.98. The Nasdaq composite rose 31.40 points, or 0.4 percent, to 7,637.86 and the Russell 2000 climbed 11.25 points, or 0.7 percent, to 1,664.63.

The Nasdaq, which includes a heavy weighting of technology companies, and the Russell, an index comprised of smaller and more U.S.-focused companies, are at record highs. The S&P 500 is still 4 percent below the record it set on Jan. 26, and the Dow will have to rally 7 percent to reach the mark it set the same day.

The Labor Department said that for the first time since records began in December 2000, there are more job openings than unemployed Americans. That could give workers more leverage for pay raises, while high levels of employment and greater consumer spending are expected to lead to faster economic growth in the coming months.

Retailers helped lead the way Tuesday as more of them reported quarterly results. G-III Apparel Group climbed 10.8 percent to $47.53 after it raised its annual profit and sales forecast following a strong first quarter. Ascena Retail shook off early losses and rose 7.9 percent to $3.95.

Amazon again finished at a record high after it jumped 1.9 percent to $1,696.35 while Target gained 2.8 percent to $78.50 and Macy's jumped 8 percent to $40.05.

Jason Draho of UBS said smaller companies are leading the market because they're seen as less vulnerable to tariffs and trade disputes, and because economic growth in the U.S. is picking up while Europe and other regions don't look quite as strong. He added that technology companies did well in the first quarter, and big companies including Apple and Facebook have shaken off some recent struggles.

Starbucks fell after Howard Schultz said he's stepping down as the coffee chain's chairman. Schultz has been chairman of the company since 2000 and oversaw enormous expansion for Starbucks over that time. He stepped away as CEO in 2000 but returned in 2008, and relinquished that title to Kevin Johnson in 2017. The stock lost 2.4 percent to $55.68.

S&P Dow Jones Indices said late Monday that Twitter will be added to the benchmark S&P 500 index as of Thursday after Monsanto officially becomes part of Bayer. Twitter rose 5.1 percent to $39.80. Netflix, which will become part of the S&P 100 index, rose 1.1 percent to $365.80.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.92 percent from 2.94 percent.

Financial companies fell in tandem with bond yields. Lower yields force interest rates down on mortgages and other kinds of loans, which means lower profits for banks. Morgan Stanley lost 1.5 percent to $50.78 and Capital One gave up 1.1 percent to $94.35.

Mylan climbed 3.8 percent to $39.98 after federal regulators approved its version of Amgen's anti-infection drug Neulasta. The Mylan drug, Fulphila, is called a biosimilar, meaning it's the generic equivalent of a complex biotech drug, and it's approved to reduce the risks of infections during treatment for cancer. Amgen lost 2 percent to $181.73.

Oil prices moved higher. Crude hit a three-year high of $72 a barrel on May 21 but has declined sharply over the past two weeks. U.S. crude picked up 1.2 percent to $65.52 a barrel in New York. Brent crude, used to price international oils, added 0.1 percent to $75.38 a barrel in London.

Wholesale gasoline lost 0.8 percent to $2.11 a gallon. Heating oil slipped 0.5 percent to $2.14 a gallon. Natural gas sank 1.4 percent to $2.89 per 1,000 cubic feet.

The dollar rose to 109.76 yen from 109.58 yen. The euro slipped to $1.1715 from $1.1719.

Gold rose 0.4 percent to $1,302.20 an ounce. Silver added 0.7 percent to $16.54 an ounce. Copper jumped 2 percent to $3.20 a pound.

Germany's DAX rose 0.1 percent and the French CAC 40 dipped 0.2 percent. Britain's FTSE 100 dropped 0.7 percent.

Japan's benchmark Nikkei 225 index rose 0.3 percent and South Korea's Kospi gained 0.3 percent. In Hong Kong the Hang Seng rose 0.3 percent.

 

[bigdog]

https://www.usnews.com/news/busines...in-after-wall-street-rise-ahead-of-g7-meeting

Banks Jump as Stocks Post Their Fourth Straight Gain
US stocks rise for the fourth day in a row as banks jump along with interest rates.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stocks rallied for their fourth gain in a row Wednesday as banks climbed along with bond yields. On Wall Street there were signs investors were getting a bit less nervous about trade tensions.

Some of the biggest gains went to industries that have lagged the market in the last few months, including financial companies. Interest rates rose as bond prices in the U.S. and Europe fell. That can signal higher rates on mortgages and other consumer loans. Bank of America gained more than 3 percent.

Multinational companies such as Boeing and McDonald's also rose. That helped the Dow Jones industrial average make its biggest gain in almost two months.

Worries about international trade disputes have been affecting the market since late February, but Karyn Cavanaugh, senior markets strategist at Voya Investment Management, said investors might have started focusing on the strength of the U.S. economy and continued global growth instead.

"It's refreshing to see that investors are realizing this is an incredibly good economic backdrop and it's an incredibly good environment for companies to make money," she said. "We're in a sweet spot where we have some growth and low inflation and investors just don't want to believe it."

The S&P 500 index added 23.55 points, or 0.9 percent, to 2,772.35. The Dow rose 346.61 points, or 1.4 percent, to 25,146.39. The Nasdaq composite rose 51.38 points, or 0.7 percent, to 7,689.24. The Russell 2000 index of smaller company stocks gained 11.32 points, or 0.7 percent, to 1,675.95. The Nasdaq and Russell have set all-time highs each of the last few days.

Electric car maker Tesla surged to its biggest gain in two and a half years as investors grow more confident it will meet its production targets for the Model 3 sedan. Tesla rose 9.7 percent to $319.50.

Chairman and CEO Elon Musk said he expects the company will be able to produce 5,000 Model 3s in a single week by the end of this month. The Model 3 is Tesla's attempt to reach the mass market with a less expensive car. Tesla has struggled to reach that target, and doing so would help the company stem its long-term losses.

Bond prices slipped. The yield on the 10-year Treasury note rose to 2.78 percent from 2.93 percent, and JPMorgan Chase climbed 2.3 percent to $110.36 and Wells Fargo added 2 percent to $55.58.

Banks have fallen over the last few months even though long-term interest rates have reached their highest levels in years. Health care and basic materials companies, which are essentially flat over the same period, did better than the rest of the market Wednesday. CVS Health rose 2.8 percent to $65.08 and chemical maker DowDuPont jumped 3.2 percent to $70.04.

That didn't mean investors were ready to overlook trade issues altogether. Brown-Forman, the maker of Jack Daniel's and other liquors, slumped 6.1 percent to $52.47. The company said it has concerns about how trade tensions might affect its business. On Tuesday, Mexico announced tariffs on bourbon and other U.S. products, and the European Union may place duties on Kentucky bourbon. The duties are in response to the tariffs on steel and aluminum imports that President Trump imposed last week.

Brown-Forman's sales fell short of analyst projections while costs connected with the creation of a charitable foundation affected its earnings.

Devon Energy climbed after it said it will sell its interest in two companies for a total of $3.13 billion. Global Infrastructure Partners will buy its stakes in EnLink Midstream Partners and EnLink Midstream LLC. Devon increased its stock buyback authorization and the stock gained 5.6 percent to $41.51.

Signet Jewelers soared after the company had a stronger first quarter than Wall Street expected and said there are signs its sales are stabilizing. The company also maintained its annual forecasts. Signet traded as high as $75 a share in November. Since then it's reported weak sales, announced more store closings, and dealt with complications from the sale of its credit portfolio. The stock rose 18.4 percent to $52.27 Wednesday.

Athenahealth, a medical billing software company, climbed after it said it is exploring a possible sale. Investor Elliott Management recently offered about $6.5 billion to take Athenahealth private and said it had grown frustrated with the company's performance.

The company also said CEO Jonathan Bush resigned effective immediately. A few days earlier the New York Post reported that Bush settled a sexual harassment claim with a former employee several years ago. The stock advanced 4.2 percent to $157.44.

Benchmark U.S. crude shed 1.2 percent to $64.73 a barrel in New York. Brent crude, used to price international oils, inched down to $75.36 per barrel in London.

Wholesale gasoline fell 1.7 percent to $2.07 a gallon. Heating oil slid 0.7 percent to $2.13 a gallon. Natural gas rose 0.2 percent to $2.90 per 1,000 cubic feet.

Gold fell 0.1 percent to $1,301.40 an ounce. Silver rose 0.9 percent to $16.69 an ounce. Copper gained 2 percent to $3.26 a pound.

The dollar rose to 110.19 yen from 109.76 yen. The euro rose to $1.1768 from $1.1715.

The DAX in Germany rose 0.3 percent, as did the FTSE 100 in Britain. France's CAC 40 lost 0.1 percent. Tokyo's Nikkei 225 rose 0.4 percent and Hong Kong's Hang Seng advanced 0.4 percent. South Korean markets were closed for a holiday.

 

[Skate]

View attachment 87717

https://www.usnews.com/news/busines...in-after-wall-street-rise-ahead-of-g7-meeting

Banks Jump as Stocks Post Their Fourth Straight Gain
US stocks rise for the fourth day in a row as banks jump along with interest rates.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stocks rallied for their fourth gain in a row Wednesday as banks climbed along with bond yields. On Wall Street there were signs investors were getting a bit less nervous about trade tensions.

Some of the biggest gains went to industries that have lagged the market in the last few months, including financial companies. Interest rates rose as bond prices in the U.S. and Europe fell. That can signal higher rates on mortgages and other consumer loans. Bank of America gained more than 3 percent.

Multinational companies such as Boeing and McDonald's also rose. That helped the Dow Jones industrial average make its biggest gain in almost two months.

Worries about international trade disputes have been affecting the market since late February, but Karyn Cavanaugh, senior markets strategist at Voya Investment Management, said investors might have started focusing on the strength of the U.S. economy and continued global growth instead.

"It's refreshing to see that investors are realizing this is an incredibly good economic backdrop and it's an incredibly good environment for companies to make money," she said. "We're in a sweet spot where we have some growth and low inflation and investors just don't want to believe it."

The S&P 500 index added 23.55 points, or 0.9 percent, to 2,772.35. The Dow rose 346.61 points, or 1.4 percent, to 25,146.39. The Nasdaq composite rose 51.38 points, or 0.7 percent, to 7,689.24. The Russell 2000 index of smaller company stocks gained 11.32 points, or 0.7 percent, to 1,675.95. The Nasdaq and Russell have set all-time highs each of the last few days.

Electric car maker Tesla surged to its biggest gain in two and a half years as investors grow more confident it will meet its production targets for the Model 3 sedan. Tesla rose 9.7 percent to $319.50.

Chairman and CEO Elon Musk said he expects the company will be able to produce 5,000 Model 3s in a single week by the end of this month. The Model 3 is Tesla's attempt to reach the mass market with a less expensive car. Tesla has struggled to reach that target, and doing so would help the company stem its long-term losses.

Bond prices slipped. The yield on the 10-year Treasury note rose to 2.78 percent from 2.93 percent, and JPMorgan Chase climbed 2.3 percent to $110.36 and Wells Fargo added 2 percent to $55.58.

Banks have fallen over the last few months even though long-term interest rates have reached their highest levels in years. Health care and basic materials companies, which are essentially flat over the same period, did better than the rest of the market Wednesday. CVS Health rose 2.8 percent to $65.08 and chemical maker DowDuPont jumped 3.2 percent to $70.04.

That didn't mean investors were ready to overlook trade issues altogether. Brown-Forman, the maker of Jack Daniel's and other liquors, slumped 6.1 percent to $52.47. The company said it has concerns about how trade tensions might affect its business. On Tuesday, Mexico announced tariffs on bourbon and other U.S. products, and the European Union may place duties on Kentucky bourbon. The duties are in response to the tariffs on steel and aluminum imports that President Trump imposed last week.

Brown-Forman's sales fell short of analyst projections while costs connected with the creation of a charitable foundation affected its earnings.

Devon Energy climbed after it said it will sell its interest in two companies for a total of $3.13 billion. Global Infrastructure Partners will buy its stakes in EnLink Midstream Partners and EnLink Midstream LLC. Devon increased its stock buyback authorization and the stock gained 5.6 percent to $41.51.

Signet Jewelers soared after the company had a stronger first quarter than Wall Street expected and said there are signs its sales are stabilizing. The company also maintained its annual forecasts. Signet traded as high as $75 a share in November. Since then it's reported weak sales, announced more store closings, and dealt with complications from the sale of its credit portfolio. The stock rose 18.4 percent to $52.27 Wednesday.

Athenahealth, a medical billing software company, climbed after it said it is exploring a possible sale. Investor Elliott Management recently offered about $6.5 billion to take Athenahealth private and said it had grown frustrated with the company's performance.

The company also said CEO Jonathan Bush resigned effective immediately. A few days earlier the New York Post reported that Bush settled a sexual harassment claim with a former employee several years ago. The stock advanced 4.2 percent to $157.44.

Benchmark U.S. crude shed 1.2 percent to $64.73 a barrel in New York. Brent crude, used to price international oils, inched down to $75.36 per barrel in London.

Wholesale gasoline fell 1.7 percent to $2.07 a gallon. Heating oil slid 0.7 percent to $2.13 a gallon. Natural gas rose 0.2 percent to $2.90 per 1,000 cubic feet.

Gold fell 0.1 percent to $1,301.40 an ounce. Silver rose 0.9 percent to $16.69 an ounce. Copper gained 2 percent to $3.26 a pound.

The dollar rose to 110.19 yen from 109.76 yen. The euro rose to $1.1768 from $1.1715.

The DAX in Germany rose 0.3 percent, as did the FTSE 100 in Britain. France's CAC 40 lost 0.1 percent. Tokyo's Nikkei 225 rose 0.4 percent and Hong Kong's Hang Seng advanced 0.4 percent. South Korean markets were closed for a holiday.

It's unusual that bigdog didn't post today.

Just checking - RUOK bigdog?

Skate

 

[Joe Blow]

It's unusual that bigdog didn't post today.

Just checking - RUOK bigdog?

Yes, I noticed too. Bigdog, give us a shout out to let us know you're OK.

 

[bigdog]

Was intransit back from Phuket and delayed landing this morning due to only one runway

I was posting at after 4:00 AM Thailand time for week

Thank you skate and joe blow

This is live indexes in our region as at 12:28 PM

https://www.usnews.com/news/business/articles/2018-06-07/asian-stocks-higher-after-wall-street-gains

Mixed Finish for Stocks as Energy Rises and Tech Drops
U.S. stocks finish mixed as energy companies rise with the price of crude oil but technology companies including Facebook and Lam Research take their worst loss in six weeks.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stocks closed mixed Thursday as technology companies took their worst loss in six weeks, but energy companies rose with oil prices. A four-day winning streak for the S&P 500 index ended.

Energy companies rallied as the price of U.S. crude oil rose almost 2 percent. Smaller companies fell. Like technology companies, they've done far better than the rest of the market in the last few weeks. Some stocks that have struggled lately, including utilities, finished with gains.

Household goods makers also broke from their recent losses to finish higher. J.M. Smucker dropped after issuing a weak quarterly report and a disappointing forecast for the year. Bond prices climbed and yields dipped.

Quincy Krosby, the chief market strategist at Prudential Financial, said investors were playing it safe as they wait for leaders of the Group of Seven to meet Friday and Saturday, and for European Central Bank and Federal Reserve meetings next week.

"This G-7 meeting does not follow the historical template," she said. "The market is concerned about tariffs, negative trade dialogue coming from that meeting."

Still, Krosby said it's a good sign that investors were willing to take some of their winnings from the technology sector and put it into other parts of the market.

The S&P 500 index lost 1.98 points, or 0.1 percent, to 2,770.37. The Dow Jones industrial average picked up 95.02 points, or 0.4 percent, to 25,241.41, helped by big gains for McDonald's and Chevron.

The Nasdaq composite slumped 54.17 points, or 0.7 percent, to 7,635.07. The Russell 2000 index of small-company stocks slid 8.17 points, or 0.5 percent, to 1,667.77. Both of those indexes set all-time highs the last few days.

More stocks rose than fell on the New York Stock Exchange.

Benchmark U.S. crude rose 1.9 percent to $65.95 per barrel in New York. Brent crude, used to price international oils, gained 2.6 percent to $77.32 per barrel in London.

Chevron jumped 2.9 percent to $126.96 and Exxon Mobil rose 1 percent to $82.88.

Commerce Secretary Wilbur Ross said the U.S. government has reached a deal with Chinese telecommunications giant ZTE that includes a $1 billion fine, monitoring and leadership changes. ZTE has already paid about $1 billion for selling equipment to North Korea and Iran in violation of U.S. sanctions. In April the department blocked ZTE from importing any U.S. components for seven years, which threatened to put the company out of business.

The Wall Street Journal said that with the ZTE matter settled, China's government will likely approve a deal for Qualcomm to buy NXP Semiconductors. Qualcomm added 1.3 percent to $60.64 and NXP rose 4.8 percent to $120.07.

Technology stocks have fared far better than the rest of the market for more than a year, but they broke from that pattern Thursday. Facebook lost 1.7 percent to $188.18 and Microsoft fell 1.6 percent to $100.88. Chipmaker Lam Research shed 5.4 percent to $188.83.

Smucker's profit and sales fell short of analyst estimates, as did the company's forecasts for the new fiscal year. The maker of jams, jellies and other foods said it is facing difficulties including higher raw materials and freight costs and rising interest rates. The stock lost 5.4 percent to $100.80.

Allergan jumped 5.1 percent to $163.27 after Bloomberg News reported that investor Carl Icahn bought a small stake in the Botox maker. Bloomberg had no details on Icahn's plans, but he could join other activist investors who are pushing the company to make bigger changes.

At the end of May the company finished a strategic review and said it could sell its infectious disease and women's health businesses. But on Tuesday, Senator Investment Group and Appaloosa sent Allergan a letter saying they were "underwhelmed," and they suggested splitting Allergan's CEO and chairman roles and making changes to its board. Allergan stock is down 28 percent over the last 12 months.

The dollar fell to 109.60 yen from 110.19 yen. The euro rose to $1.1813 from $1.1768 after a European Central Bank board member said policymakers will discuss ending the bank's bond-purchasing stimulus program next week.

The Federal Reserve, meanwhile, is expected to raise interest rates on Wednesday. That would be the second increase in rates this year, and the Fed has said it expects to raise rates three times in 2018. But investors are looking for clues the Fed is planning a fourth increase.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.92 percent from 2.97 percent.

In other energy trading, wholesale gasoline rose 2.2 percent to $2.11 a gallon. Heating oil jumped 2.5 percent to $2.18 a gallon. Natural gas climbed 1.2 percent to $2.93 per 1,000 cubic feet.

Gold rose 0.1 percent to $1,303 an ounce. Silver added 0.7 percent to $16.82 an ounce. Copper gained 0.4 percent to $3.28 a pound.

Germany's DAX lost 0.1 percent and the CAC 40 in France slid 0.2 percent. Britain's FTSE 100 slipped 0.1 percent after London's stock exchange opened one hour late because of a technical problem.

Japan's Nikkei 225 jumped 0.9 percent while the Kospi in South Korea finished up 0.7 percent and Hong Kong's Hang Seng index advanced 0.8 percent.