NYSE Dow Jones finished today at:

[bigdog]

https://www.usnews.com/news/busines...counts-down-to-us-china-tariffs-markets-mixed

Tech, Health Care Companies Drive Solid Gains for US Stocks
Technology and health care companies led U.S. stocks broadly higher Thursday, setting the market on track to break a two-week losing streak.

By ALEX VEIGA, AP Business Writer

Technology and health care companies led U.S. stocks broadly higher Thursday, setting the market on track to break a two-week losing streak.

Some encouraging economic data helped put investors in a buying mood, though trading volume was relatively subdued as markets reopened following the Independence Day holiday in the U.S.

Wall Street could be in for a bumpier ride Friday, when U.S. tariffs on billions of Chinese goods are set to kick in. Investors will also be watching out for the Labor Department's latest monthly report on jobs and wages.

"It feels like the market is responding to the stronger economic data and some easing of the trade tensions overnight and focusing a bit more on fundamentals and a bit less on the ongoing concerns about trade," said Christine Scalley, U.S. equity strategist at J.P. Morgan Private Bank.

The S&P 500 index rose 23.39 points, or 0.9 percent, to 2,736.61. The Dow Jones Industrial Average gained 181.92 points, or 0.8 percent, to 24,356.74. The Nasdaq composite added 83.75 points, or 1.1 percent, to 7,586.43. The Russell 2000 index of smaller-company stocks picked up 19.06 points, or 1.1 percent, to 1,679.48.

While uncertainty over U.S. trade policy has hung over the market for months, tensions intensified in recent weeks. The S&P 500 posted two consecutive weekly declines heading into this week.

On Friday the U.S. is set to impose a 25 percent tariff on $34 billion worth of Chinese imports. And China is expected to strike back with tariffs on a similar amount of U.S. exports.

The Trump administration has said it won't target an additional $16 billion worth of Chinese goods until it gathers further public comments. It's also identifying an additional $200 billion in Chinese goods for 10 percent tariffs, which could take effect if Beijing retaliates.

On Thursday in China, Commerce Ministry spokesman Gao Feng hit back at "threats and blackmail" ahead of the planned U.S. tariff hike. He added that China would be forced to fight back to protect its own interests.

The big question remains: how far will the two countries go in their dispute.

"The market tomorrow morning will be very focused on did the U.S. proceed -- which at this point it feels like they're going to -- and was there any reaction overseas from China," Scalley said.

Meanwhile, a German newspaper report suggested Thursday that the U.S. may propose reducing impending tariffs on auto imports from the European Union to zero.

Major European indexes surged on the report, which helped prime U.S. indexes for their solid start early Thursday.

Some encouraging U.S. economic data also gave traders something to cheer about. The Institute for Supply Management issued data indicating that U.S. service firms expanded at a surprisingly strong pace in June. Separately, payroll processor ADP said private U.S. employers added 177,000 in June. The Labor Department is due to release its June jobs report Friday.

Technology stocks, which lead all other sectors in the S&P 500 with an 11.3 percent gain this year, led the rally. Qorvo climbed 5.7 percent to $81.82.

Several health care sector stocks also helped lift the market. Celgene gained 2.2 percent to $80.39.

Benchmark U.S. crude dropped $1.20, or 1.6 percent, to settle at $72.94 per barrel in New York. Brent crude, used to price international oils, slid 85 cents, or 1.1 percent, to close at $77.39 per barrel in London.

The decline in oil prices weighed on some energy stocks. Marathon Oil dropped 2.7 percent to $20.70.

Bond prices were little changed. The yield on the 10-year Treasury held at 2.83 percent.

The dollar strengthened to 110.68 yen from 110.49 yen on Wednesday. The euro rose to $1.1680 from $1.1667.

Gold added $5.30 to $1,258.80 an ounce. Silver gained 5 cents to $16.10 an ounce. Copper fell 9 cents, or 3.1 percent, to $2.83 a pound.

In other energy futures trading, heating oil gained 1 cent to $2.18 a gallon. Wholesale gasoline added a penny to $2.13 a gallon. Natural gas fell 3 cents to $2.84 per 1,000 cubic feet.

Markets in Europe finished higher. Germany's DAX jumped 1.2 percent and France's CAC 40 climbed 0.9 percent. Britain's FTSE 100 gained 0.4 percent.

In Asia, markets ended the day mostly lower after China reaffirmed its determination to protect its interests in its rancorous trade dispute with Washington. Japan's Nikkei 225 index fell 0.8 percent, while Hong Kong's Hang Seng index closed 0.2 percent lower.

 

[bigdog]

https://www.usnews.com/news/busines...ks-rebound-as-us-tariffs-on-china-take-effect

US Stocks Snap Higher Despite Escalating US-China Trade Tiff
The trade dispute between the U.S. and China escalated Friday, but Wall Street focused on a solid jobs report instead.

By ALEX VEIGA, AP Business Writer

The trade dispute between the U.S. and China escalated Friday, but Wall Street focused on a solid jobs report instead.

After a wobbly start, U.S. stocks mounted a broad rally, shaking off two consecutive weekly losses.

Growing jitters in recent weeks over a stepped-up trading dispute between the world's two largest economies had weighed on the markets well ahead of Friday, when Beijing and Washington launched dueling tariffs on billions in goods.

"The markets had already sold off the prior two weeks," said Dan Heckman, national investment consultant at U.S. Bank Wealth Management. "The market probably had built that expectation in already and today we're seeing a nice rebound."

A solid pickup in hiring by U.S. employers last month also helped keep investors in a buying mood.

The S&P 500 index rose 23.21 points, or 0.8 percent, to 2,759.82. The Dow Jones Industrial Average gained 99.74 points, or 0.4 percent, to 24,456.48. The Nasdaq composite added 101.96 points, or 1.3 percent, to 7,688.39. The Russell 2000 index of smaller-company stocks picked up 14.57 points, or 0.9 percent, to 1,694.05.

The U.S. put a 25 percent tax on $34 billion worth of Chinese imports Friday. China retaliated with taxes on an equal amount of U.S. products, including soybeans, pork and electric cars, calling the move the start of the "biggest trade war in economic history."

Though the first exchange of tariffs is unlikely to inflict much economic harm on either nation, the damage could soon escalate. President Donald Trump, who has claimed that winning a trade war would be easy, has said that he's prepared to drastically raise tariffs on more Chinese imports. Mounting tariffs could raise costs across the board for consumers and businesses, slowing growth and investment and hurting companies that rely on imported parts to make their goods.

Despite the market's gains Friday, much damage has already been inflicted on stocks that would stand to lose in a protracted trade battle with China. American companies that do a lot of business there have seen steep drops in their stock prices in the past few weeks.

Aircraft maker Boeing, which relies on China for 12.3 percent of its sales, according to FactSet, has seen its stock fall 9.9 percent over the last month as the trade tensions with China worsened.

Heavy equipment maker Caterpillar, for whom China is also its second-biggest market after the U.S., is off 13.5 percent over the same time. Liquor maker Brown-Forman, whose products include Jack Daniels, is off 15 percent since late May. Whiskey, along with soybeans, pork and cheese, is among the products Chinese is slapping retaliatory tariffs on.

As the prospect of Chinese tariffs on soybeans grew in recent weeks, the price of soybeans has fallen sharply. Soybean futures have fallen from $10.42 a bushel in late May to $8.95 Friday, a drop of 14 percent.

That hurts U.S. soybean farmers and could also have an impact on makers of farm equipment, such as Deere & Co. Deere's stock has fallen 11.7 percent over the last month. Last year China bought 30 percent of the soybeans produced in the U.S.

"The market is counting on this to subside," said Erik Davidson, chief investment officer at Wells Fargo Private Bank. "If they get an indication that this will continue to escalate, that will cause some problems."

Investors also welcomed new data Friday from the government showing that U.S. employers kept up a brisk pace of hiring last month, without having to hike wages much. Markets have been watching to see if tight labor market conditions would force wages higher, a sign of inflation.

The Labor Department said that U.S. employers added 213,000 jobs in June. Average hourly pay rose just 2.7 percent from a year earlier, which means that after adjusting for inflation wages remain nearly flat.

Health care stocks posted the biggest gains, led by Biogen. The drugmaker's stock soared 19.6 percent to $357.48 on encouraging results from an Alzheimer's therapy.

Technology companies also notched solid gains. Advanced Micro Devices rose 5.6 percent to $16.36.

U.S. crude oil prices reversed an early slide. Benchmark U.S. crude gained 86 cents, or 1.2 percent, to settle at $73.80 per barrel in New York. Brent crude, used to price international oils, fell 28 cents to close at $77.11 per barrel in London.

Bond prices rose. The yield on the 10-year Treasury fell to 2.82 percent from 2.83 percent late Thursday.

The dollar fell to 110.45 yen from 110.68 yen on Thursday. The euro strengthened to $1.1745 from $1.1680.

Gold dropped $3 to $1,255.80 an ounce. Silver slipped 3 cents to $16.07 an ounce. Copper was little changed at $2.82 a pound.

In other energy futures trading, heating oil slipped 1 cent to $2.17 a gallon. Wholesale gasoline lost 2 cents to $2.11 a gallon. Natural gas rose 2 cents to $2.86 per 1,000 cubic feet.

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

Asian markets erased earlier losses to finish mostly higher as the uncertainty ended over whether Washington would escalate tensions with Beijing. Hong Kong's Hang Seng index gained 0.5 percent, while South Korea's Kospi added 0.7 percent. Tokyo's Nikkei 225 jumped 1.1 percent after a four-day losing streak. Australia's S&P-ASX 200 rose 0.9 percent.

8065

 

[bigdog]

https://www.usnews.com/news/busines...es-rise-despite-escalating-us-china-trade-row

Stocks Jump Again as Trade-War Worries Take Back Seat
U.S. stocks climbed with other markets on Monday as worries about trade tensions between the United States and the rest of the world took a back seat.

By STAN CHOE, AP Business Writer

NEW YORK (AP) — Never mind the trade war. Here comes earnings season.

U.S. stocks climbed with other markets on Monday as concerns about trade tensions between the United States and the rest of the world took a back seat. The calendar for upcoming weeks is full of companies telling investors how much profit they made during the spring, and the expectation is for another quarter of gangbusters growth.

That plus Friday's report showing U.S. hiring remains strong have helped to support markets despite the world's two largest economies imposing dueling tariffs on each other at the end of last week.

The S&P 500 rose 24.35 points, or 0.9 percent, to 2,784.17. The Dow Jones industrial average jumped 320.11, or 1.3 percent, to 24,776.59, and the Nasdaq composite gained 67.81, or 0.9 percent, to 7,756.20.

It's the third straight day that the S&P 500 has climbed at least 0.8 percent. It follows a rocky few months where some investors sold stocks on the assumption that a full-blown, harmful trade war was a certainty. Others still expect negotiated settlements to be the final result.

"The market in the second quarter tried to price in this whole thing, and it was probably a little too fast for that," said Matthew Miskin, market strategist with John Hancock Investments. "There still are a lot of negative developments happening here, but before earnings season typically tends to be a sweet spot for the market. "

Stocks often rise in anticipation of healthy earnings reports, Miskin said, and the results for this latest quarter are forecast to be much stronger than usual for companies this many years into an economic expansion.

Across the S&P 500, analysts are calling for 19 percent growth in earnings per share from a year earlier, according to S&P Global Market Intelligence. Lower tax rates and stronger revenues are helping to drive the gains.

The growth may be peaking, however. Perhaps more important than the numbers for last quarter will be what CEOs say in conference calls about how much the trade tensions will hurt their profits later in the year.

"It's hard to not see it being an issue that hurts margins," Miskin said.

Citigroup, JPMorgan Chase and Wells Fargo are among this week's headliners, and all three are reporting their results on Friday.

Bank stocks were also among the market's biggest winners on Monday. Financial stocks in the S&P 500 jumped 2.3 percent for the largest gain among the 11 sectors that make up the index.

They rose with Treasury yields, which can translate into bigger profits for banks by enabling them to charge higher rates for mortgages and other loans.

The yield on the 10-year Treasury note climbed to 2.86 percent from 2.82 percent late Friday.

On the flip side, higher interest rates can lure buyers away from high-dividend stocks because they become more interested in bonds. That led to losses for telecoms and real-estate investment trusts. Utilities were the worst-performing area of the S&P 500 and dropped 3.1 percent.

Among other market winners was Helen of Troy, which surged 12.7 percent to $114.85 after the consumer-products company reported stronger revenue for the spring, with particularly solid growth in online sales.

In overseas markets, France's CAC 40 rose 0.4 percent, Germany's DAX added 0.4 percent and the FTSE 100 climbed 0.9 percent.

Japan's Nikkei 225 jumped 1.2 percent, the Hang Seng in Hong Kong climbed 1.3 percent and the Kospi in South Korea added 0.6 percent.

Stocks from emerging markets, which have been on a wild ride up and down this year, jumped 1.5 percent.

The dollar edged up to 110.82 Japanese yen from 110.45 yen late Friday. The euro inched up to $1.1749 from $1.1745, and the British pound slipped to $1.325 from $1.3266.

Benchmark U.S. crude rose 5 cents to $73.85 per barrel. Brent crude, the international standard, rose 96 cents to $78.07 a barrel.

In other energy trading, heating oil rose 3 cents to $2.20 a gallon and wholesale gasoline rose 4 cents to $2.15 a gallon. Natural gas fell 3 cents to $2.83 per 1,000 cubic feet.

Gold rose $3.80 to settle at $1,259.60, silver added 7 cents to $16.14 per ounce and copper gained 3 cents to $2.85 per pound.

 

[Skate]

View attachment 88251

https://www.usnews.com/news/busines...es-rise-despite-escalating-us-china-trade-row

Stocks Jump Again as Trade-War Worries Take Back Seat
U.S. stocks climbed with other markets on Monday as worries about trade tensions between the United States and the rest of the world took a back seat.

By STAN CHOE, AP Business Writer

NEW YORK (AP) — Never mind the trade war. Here comes earnings season.

U.S. stocks climbed with other markets on Monday as concerns about trade tensions between the United States and the rest of the world took a back seat. The calendar for upcoming weeks is full of companies telling investors how much profit they made during the spring, and the expectation is for another quarter of gangbusters growth.

That plus Friday's report showing U.S. hiring remains strong have helped to support markets despite the world's two largest economies imposing dueling tariffs on each other at the end of last week.

The S&P 500 rose 24.35 points, or 0.9 percent, to 2,784.17. The Dow Jones industrial average jumped 320.11, or 1.3 percent, to 24,776.59, and the Nasdaq composite gained 67.81, or 0.9 percent, to 7,756.20.

It's the third straight day that the S&P 500 has climbed at least 0.8 percent. It follows a rocky few months where some investors sold stocks on the assumption that a full-blown, harmful trade war was a certainty. Others still expect negotiated settlements to be the final result.

"The market in the second quarter tried to price in this whole thing, and it was probably a little too fast for that," said Matthew Miskin, market strategist with John Hancock Investments. "There still are a lot of negative developments happening here, but before earnings season typically tends to be a sweet spot for the market. "

Stocks often rise in anticipation of healthy earnings reports, Miskin said, and the results for this latest quarter are forecast to be much stronger than usual for companies this many years into an economic expansion.

Across the S&P 500, analysts are calling for 19 percent growth in earnings per share from a year earlier, according to S&P Global Market Intelligence. Lower tax rates and stronger revenues are helping to drive the gains.

The growth may be peaking, however. Perhaps more important than the numbers for last quarter will be what CEOs say in conference calls about how much the trade tensions will hurt their profits later in the year.

"It's hard to not see it being an issue that hurts margins," Miskin said.

Citigroup, JPMorgan Chase and Wells Fargo are among this week's headliners, and all three are reporting their results on Friday.

Bank stocks were also among the market's biggest winners on Monday. Financial stocks in the S&P 500 jumped 2.3 percent for the largest gain among the 11 sectors that make up the index.

They rose with Treasury yields, which can translate into bigger profits for banks by enabling them to charge higher rates for mortgages and other loans.

The yield on the 10-year Treasury note climbed to 2.86 percent from 2.82 percent late Friday.

On the flip side, higher interest rates can lure buyers away from high-dividend stocks because they become more interested in bonds. That led to losses for telecoms and real-estate investment trusts. Utilities were the worst-performing area of the S&P 500 and dropped 3.1 percent.

Among other market winners was Helen of Troy, which surged 12.7 percent to $114.85 after the consumer-products company reported stronger revenue for the spring, with particularly solid growth in online sales.

In overseas markets, France's CAC 40 rose 0.4 percent, Germany's DAX added 0.4 percent and the FTSE 100 climbed 0.9 percent.

Japan's Nikkei 225 jumped 1.2 percent, the Hang Seng in Hong Kong climbed 1.3 percent and the Kospi in South Korea added 0.6 percent.

Stocks from emerging markets, which have been on a wild ride up and down this year, jumped 1.5 percent.

The dollar edged up to 110.82 Japanese yen from 110.45 yen late Friday. The euro inched up to $1.1749 from $1.1745, and the British pound slipped to $1.325 from $1.3266.

Benchmark U.S. crude rose 5 cents to $73.85 per barrel. Brent crude, the international standard, rose 96 cents to $78.07 a barrel.

In other energy trading, heating oil rose 3 cents to $2.20 a gallon and wholesale gasoline rose 4 cents to $2.15 a gallon. Natural gas fell 3 cents to $2.83 per 1,000 cubic feet.

Gold rose $3.80 to settle at $1,259.60, silver added 7 cents to $16.14 per ounce and copper gained 3 cents to $2.85 per pound.

It’s been 11 Years, 5 Months & 24 Days since Bigdog started this thread - a total of 3,123 posts.

What a mile stone - well done Bigdog!

Bigdog even managed to complete his posting on time when overseas, postings we have come to enjoy & appreciate.

Skate

 

[Joe Blow]

It’s been 11 Years, 5 Months & 24 Days since Bigdog started this thread - a total of 3,123 posts.

What a mile stone - well done Bigdog!

Bigdog even managed to complete his posting on time when overseas, postings we have come to enjoy & appreciate.

Skate

I agree Skate. This thread is the greatest single act of long term commitment and dedication that I've ever seen on a forum. Come rain, hail or shine, bigdog will be there to update you on the US and other international markets.

Thank you bigdog for your tireless efforts in keeping ASF members and visitors informed every day!

 

[bigdog]

https://www.usnews.com/news/busines.../asian-markets-mirror-optimism-on-wall-street

US Stocks Climb Again as Pepsi Leads Household Goods Rally
US stocks rose for the fourth day in a row as Pepsi led household goods makers higher. Technology companies also climbed

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stocks shook off some midday doldrums and rose for the fourth day in a row Tuesday as strong results from Pepsi helped household goods companies. The market is at its highest level since early February.

Shares of most kinds of large companies finished higher, with food and consumer products makers, energy companies and utilities making some of the biggest gains. Pepsi staged its biggest rally in almost nine years after a solid second-quarter report.

The S&P 500 is the highest it's been since Feb. 1 and has climbed seven times in the last eight days even though the U.S. and China are now in open conflict over trade. Wall Street has focused instead on last week's strong jobs report for June as well as company earnings reports.

Invesco Chief Global Market Strategist Kristina Hooper said investors are taking a risk by overlooking how damaging the trade war might get.

"This is all about pushing aside that which is messy and difficult to calculate," she said. "It's far easier to ignore it."

The S&P 500 index added 9.67 points, or 0.3 percent, to 2,793.84. The Dow Jones Industrial Average rose 143.07 points, or 0.6 percent, to 24,919.66.

The Nasdaq composite picked up 3 points to 7,759.20. The Russell 2000 index of smaller-company stocks lost 8.99 points, or 0.5 percent, to 1,695.62 after big gains over the last five days. Slightly more stocks rose than fell on the New York Stock Exchange.

Major U.S. banks including JPMorgan Chase and Citigroup will announce their results Friday morning, and most of the companies in the S&P 500 will report their results in the weeks after that.

Pepsi's beverage sales are still struggling as the company tries to adjust to Americans' changing drinking habits. The maker of Gatorade, Mountain Dew and Tropicana said sales in North America fell, but its earnings were better than expected and analysts were pleased with its results in other markets.

The stock rose 4.8 percent to $112.89.

Investors are looking forward to another round of strong profit growth thanks to the growing U.S. economy and the corporate tax cut that took effect at the end of 2017. Hooper, of Invesco, said that could help stocks over the next few weeks, but said the market might struggle after that.

She said the taxes the U.S. placed on imported washing machines in January have clearly hurt sales, and there are signs the newer tariffs are affecting business spending.

U.S. crude oil rose 0.4 percent to $74.11 a barrel in New York. Brent crude, used to price international oils, gained 1 percent to $78.86 a barrel in London.

A shakeup at Lowe's continued as the home improvement chain said its chief operating officer and several other executives are leaving because their jobs are being eliminated or assigned to other executives. Marvin Ellison became Lowe's CEO on July 2 and the company's chief financial officer announced his retirement in June.

Lowe's climbed 2.1 percent to $99.01.

J.M. Smucker said it will sell its U.S. baking business, including Pillsbury. Brynwood Partners will buy the division for $375 million. Smucker said the business had about $370 million in sales over its last fiscal year and the sale will reduce its adjusted profit by 25-30 cents a share this year. The stock declined 1.6 percent to $109.14.

Financial companies have fared far worse than the rest of the market this year, and that continued Tuesday. Citigroup fell 1 percent to $68.23 and insurer MetLife lost 1.2 percent to $44.91.

Bond prices were little changed after a sharp drop one day earlier. The yield on the 10-year Treasury note held steady at 2.86 percent.

Utilities and phone companies recovered some of Monday's losses. Those stocks pay large dividends, and investors often view them as alternatives to bonds. When bond yields rise, the big dividend payers become less appealing to investors who are seeking a source of steady income.

In other commodities trading, wholesale gasoline added 0.5 percent to $2.16 a gallon. Heating oil rose 1.2 percent to $2.22 a gallon. Natural gas fell 1.4 percent to $2.79 per 1,000 cubic feet.

Gold fell 0.3 percent to $1,255.40 an ounce. Silver lost 0.3 percent to $16.09 an ounce. Copper sank 0.4 percent to $2.84 a pound.

The dollar rose to 111.28 yen from 110.82 yen. The euro fell to $1.1745 from $1.1749.

France's CAC 40 gained 0.7 percent and the German DAX added 0.5 percent. The FTSE 100 index of British shares rose 0.1 percent. The FTSE 100 has rallied over the last few days as investors saw signs Britain would keep closer trade ties with the European Union after it leaves the EU.

A cabinet meeting held Friday by Prime Minister Theresa May yielded a plan that favors closer trade ties including a partial free trade zone.

Japan's benchmark Nikkei 225 added 0.7 percent and South Korea's Kospi gained 0.4 percent. In Hong Kong the Hang Seng dipped less than 0.1 percent.

 

[bigdog]

https://www.usnews.com/news/busines...e-as-asia-braces-for-more-us-tariffs-on-china

Stocks Skid as Trade War Worsens With New Tariff Threats
Global stocks skid after the U.S. threatened to put taxes on an additional $200 billion in imports from China and Beijing said it will retaliate.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Global stock indexes sank Wednesday after the Trump administration released a list of $200 billion in goods that could be hit with tariffs and China said it would retaliate. The dollar spiked and big exporters plunged.

Companies that sell computer chips, oil, basic materials and heavy machinery dropped after the Trump administration proposed a 10 percent tax on a wide list of imports. It is scheduled to make a decision on the potential tariffs after Aug. 31.

China's government said it will take "firm and forceful measures" if the new tariffs are enacted. That response would likely include measures other than tariffs. Trump has threatened to put new taxes almost everything the U.S. imports from China.

Jack Ablin, chief investment officer for Cresset Wealth Advisors, said the tariffs can have big effects: a tariff on an import from one country can lead to broad price increases for similar items, and rising taxes and costs might can companies to change their supply lines in less efficient ways.

"When you start adding all of that together, you end up with typically higher inflation and low productivity," he said. "Higher inflation tends to rob consumers of their income and lower productivity tends to rob companies of their profits."

A four-day winning streak for the S&P 500 ended as the benchmark index lost 19.82 points, or 0.7 percent, to 2,774.02. The Dow Jones Industrial Average dropped 219.21 points, or 0.9 percent, to 24,700.75. The Nasdaq composite fell 42.59 points, or 0.5 percent, to 7,716.61. The Russell 2000, an index of smaller and more U.S.-focused companies, gave up 11.96 points, or 0.7 percent, to 1,683.66.

The S&P 500 had closed at a five-month high Tuesday.

The new list of tariff targets from the U.S. Trade Representative includes vacuum cleaners, furniture and car and bicycle parts, but U.S.-branded smartphones and laptops were excluded. Still, chipmakers, which make large portions of their sales in China, slumped. Nvidia fell 2.3 percent to $247.53 and Micron Technology lost 2.8 percent to $54.18.

Construction equipment maker Caterpillar lost 3.2 percent to $136.76 and farm equipment maker Deere lost 2.2 percent to $141.42.

The ICE U.S. dollar index jumped 0.6 percent, a large move. The dollar rose sharply against the Japanese currency, increasing to 112.04 yen from 111.28 yen. The euro fell to $1.1674 from $1.1745.

The stronger dollar hurts exporters because it makes U.S. goods and commodities more expensive in other markets. Crude oil prices tumbled partly because of the rising dollar and partly because Libya said it will start exporting oil again, a move that will increase supplies.

Benchmark U.S. crude fell 5 percent to $70.38 a barrel in New York. Brent crude, used to price international oils, plunged 6.9 percent to $73.40 a barrel in London.

On Friday the U.S. and China put 25 percent taxes on $34 billion in imports. China imported only $130 billion in goods from the U.S. last year, but it could retaliate against the U.S. through other means including regulatory moves and investigations of U.S. companies.

The trade dispute stems from Washington's complaint that Beijing steals or pressures companies to hand over technology and its concerns that plans for state-led development of Chinese companies in robotics and other fields might erode American industrial leadership.

Indexes in Europe and Asia took steeper losses as investors worried the worsening trade dispute will hamper the growth of the global economy. France's CAC 40 and the DAX in Germany both lost 1.5 percent. Britain's FTSE 100 index dropped 1.3 percent.

Japan's benchmark Nikkei 225 fell 1.2 percent and the South Korean Kospi lost 0.6 percent while Hong Kong's Hang Seng shed 1.3 percent.

Airlines took sharp losses after American said it expects slower fare growth in the U.S. American Airlines slumped 8.1 percent to $35.96 and United Continental slid 3.4 percent to $68.88.

Twenty-First Century Fox raised its offer for European pay TV service Sky. Fox already owns 39 percent of Sky and wants to buy the rest, but rival Comcast has stepped in with its own bid. Fox says the new offer values Sky at $32.5 billion.

Fox lost 4 percent to $47.79. In the U.K., Sky stock fell 0.5 percent.

Bond prices moved higher. The yield on the 10-year Treasury note fell to 2.84 percent from 2.87 percent.

The dip in bond yields helped utility companies make small gains. Utility companies tend to pay large dividends, so investors who want income often buy them when bond yields fall.

In other commodities trading, gold lost 0.9 percent to $1,244.40 an ounce. Earlier this month gold hit its lowest price since early 2017. Silver fell 1.7 percent to $15.82 an ounce. Copper skidded 3.4 percent to $2.74 a pound.

Wholesale gasoline fell 4.6 percent to $2.06 a gallon. Heating oil sank 5.4 percent to $2.10 a gallon. Natural gas rose 1.5 percent to $2.83 per 1,000 cubic feet.

 

[bigdog]

https://www.usnews.com/news/business/articles/2018-07-12/asian-markets-rebound-from-trade-fears

Stocks Rebound; Technology Rally Leads Nasdaq to Record High
US technology companies lead the market higher as the Nasdaq composite hits an all-time high and stock indexes recover the steep losses they took the day before.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Technology companies soared Thursday as major U.S. stock indexes recovered the ground they lost a day earlier. The Nasdaq composite closed at another all-time high.

Big names like Apple and Microsoft and chipmakers including Intel all made big gains as investors remain optimistic about the technology sector even though much of the market has been shaken by escalating tensions between the U.S. and its trading partners, especially China.

Banks will begin reporting their second-quarter results Friday morning. Investors expect another round of strong profit growth for the whole market, but they're especially optimistic about technology companies. They will announce their earnings later this month.

"Tech has been there for them through all of these ups and downs," said Karyn Cavanaugh, senior markets strategist at Voya Investment Management. "They're a good wingman for investors, and that's why investors are sticking with them."

The S&P 500 index rise 24.27 points, or 0.9 percent, to 2,798.29. The Dow Jones Industrial Average rose 224.44 points, or 0.9 percent, to 24,924.89.

The Nasdaq jumped 107.30 points, or 1.4 percent, to 7,823.92. Its last record came on June 20.

The Russell 2000 index of smaller-company stocks added 6.61 points, or 0.4 percent, to 1,690.28.

Industrial companies also regained much of the ground they lost Wednesday, but energy companies and basic materials makers failed to rally. Defense contractors climbed after President Donald Trump advocated for more defense spending in the U.S. and Europe.

Several European leaders said NATO spending plans haven't changed.

Software maker CA made the biggest gain in the technology sector soared after it accepted an offer from Broadcom worth $18.9 billion, or $44.50 per share. Its stock rocketed 18.7 percent to $44.15. Broadcom investors expressed their disapproval of the deal, which involves Broadcom taking on $18 billion in debt. The stock dropped 13.7 percent to $209.98.

Broadcom's market value fell by $14.4 billion.

The merry-go-round of potential media deals continued as Comcast offered to buy European pay-TV company Sky for $34 billion a day after Twenty-First Century Fox increased its own offer for Sky.

Fox already owns part of Sky, and while it tangles with Comcast, Comcast and Disney are also trying to buy Fox itself. Fox recently accepted Disney's $71 billion offer. The New York Times reported Thursday that Comcast will focus on Sky and end its pursuit of Fox.

Sky's stock rose 3.4 percent in London. In the U.S., Comcast rose 2.3 percent to $34.55 and Fox fell 0.9 percent to $47.38. Disney gained 0.2 percent to $108.25.

CVS Health rose 1 percent to $67.99 and Aetna gained 1.9 percent to $191.09 after Bloomberg News reported that the Department of Justice won't try to stop CVS from buying Aetna. AT&T fell 1.3 percent in aftermarket trading after the Justice Department appealed a court ruling that allowed AT&T to buy Time Warner.

Papa John's International jumped 11 percent to $53.67 as founder John Schnatter resigned as chairman after confirming a report that he had used a racial slur during a conference call in May.

Stifel analyst Christopher Cull said Wall Street has viewed the company as a potential sale target for some time and investors feel that's more likely without Schnatter in charge. Since Schnatter is still is largest shareholder, Cull doesn't think that will happen.

Schnatter owns about 29 percent of the company's stock, and the value of his stake jumped by $50.5 million to Thursday to about $507 million in total.

Stocks around the world slumped Wednesday after the Trump administration released a list of $200 billion in imports from China that it could hit with a 10 percent tax. China said it would retaliate if the tariffs take effect, and the dispute could impair global economic growth.

Stocks overseas took bigger losses than U.S. indexes did and they made smaller recoveries Thursday. In Paris, the French CAC 40 climbed 1 percent. Germany's DAX added 0.6 percent and the Britain FTSE 100 rose 0.8 percent.

Tokyo's Nikkei 225 gained 1.2 percent and Hong Kong's Hang Seng gained 0.7 percent. Seoul's Kospi added 0.2 percent.

Benchmark U.S. crude dipped 0.1 percent to $70.33 a barrel in New York while Brent crude, used to price international oils, rose 1.4 percent to $74.45 per barrel in London.

U.S. crude dropped 5 percent Wednesday and Brent nosedived almost 7 percent as investors worried that the trade conflict will hurt the global economy. They also expect oil supplies to increase after Libya announced that it will start exporting oil again.

Wholesale gasoline added 0.5 percent to $2.07 a gallon. Heating oil rose 1.1 percent to $2.12 a gallon. Natural gas fell 1.1 percent to $2.80 per 1,000 cubic feet.

Bond prices ticked higher. The yield on the 10-year Treasury note fell to 2.85 percent from 2.86 percent.

Gold rose 0.2 percent to $1,246.60 an ounce. Silver gained 1 percent to $15.98 an ounce. Copper rose 1.2 percent to $2.78 a pound after it fell to an 11-month low on Wednesday.

The dollar rose to 112.46 yen after it jumped to 112.04 yen a day ago. The euro edged down to $1.1670 from $1.1674.

 

[bigdog]

https://www.usnews.com/news/busines...-mostly-higher-japans-nikkei-up-on-weaker-yen

Despite Some Wobbles, Stocks End the Week With More Gains
U.S. stocks wrap up another solid week with gains for industrial companies, retailers and energy companies.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Stocks wrapped up another solid week Friday as industrial and energy companies ticked higher, but corporate earnings got off to a sluggish start as reports from several major U.S. banks failed to excite investors.

Indexes wobbled in morning trading, but rising oil prices helped energy companies, and defense contractors and machinery makers also rose. Consumer-focused companies like Amazon set record highs.

Wells Fargo skidded after reporting a drop in earnings as fallout continued from its phony accounts scandal. Citigroup also fell after its revenue growth was weak. AT&T skidded after the Justice Department asked a court to overturn the company's purchase of Time Warner.

Investors expect another round of great profit growth this quarter, but they're not sure about what will come next: the U.S. and China are in a trade war without any signs of resolution, midterm Congressional elections are getting closer, and interest rates keep rising. Paul Christopher, head of global market strategy for the Wells Fargo Investment Institute, said investors will focus on corporate forecasts covering the rest of the year.

"We think there will be a lot of attention paid to the outlook," he said. "We still think the economy is really what investors should be watching here, and we think it's going to be solid this year and again good next year."

The S&P 500 index edged up 3.02 points, or 0.1 percent, to 2,801.31. The Dow Jones Industrial Average added 94.52 points, or 0.4 percent, to 25,019.41. The Nasdaq composite set another record, just barely, as it rose 2.06 points to 7,825.98.

The Russell 2000 index of smaller-company stocks fell 3.20 points, or 0.2 percent, to 1,687.08. More stocks fell than rose on the New York Stock Exchange.

Major indexes rose for the second consecutive week following modest losses over the previous two weeks. Investors continued to waver between optimism about the growing U.S. economy, and the strong company earnings that come with it, and worries that the trade war and other commercial disputes could set back global economic growth.

Wells Fargo, the largest U.S. mortgage lender, posted a smaller profit than analysts expected. Its stock gave up 1.2 percent to $55.36. Citi fell 2.2 percent to $67 and JPMorgan Chase dipped 0.5 percent to $106.36.

While bank profits are surging this year, their stocks are not. Much of the profit growth has come from last year's corporate tax cuts rather than a big improvement in the banks' businesses. Investors have also worried about the shrinking gap between short-term interest rates and longer-term ones because banks make a lot of their money by borrowing money at short-term rates and lending it out over the long term.

While investors are taking money out of financials, they are more optimistic about technology companies and retailers, which are expected to post even stronger earnings growth later this summer. On Friday Amazon rose 0.9 percent to $1,813.03 and Microsoft added 1.2 percent to $105.43.

AT&T dropped 1.7 percent to $31.67 after the Justice Department moved to challenge its recent purchase of Time Warner. The $85 billion deal closed last month after a federal judge ruled that it did not violate antitrust law, but the government is asking a higher court to reconsider that ruling.

Benchmark U.S. crude rose 1 percent to $71.01 a barrel in New York while Brent crude, used to price international oils, rose 1.4 percent to $75.33 per barrel in London.

Devon Energy advanced 1.8 percent to $44.72 and Exxon Mobile rose 0.7 percent to $83.31.

Johnson & Johnston lost 1.4 percent to $125.93 after a St. Louis jury awarded almost $4.7 billion in damages to 22 women and their families after they claimed asbestos in Johnson & Johnson talcum powder contributed to their ovarian cancer. The company said it will appeal, as it has in previous cases that found for women who sued the company. This is the first case that focused on asbestos in the talcum powder.

Bond prices moved higher. The yield on the 10-year Treasury note fell to 2.83 percent from 2.85 percent.

Gold lost 0.4 percent to $1,241.20 an ounce. Silver fell 1 percent to $15.82 an ounce. Copper lost 0.1 percent to $2.78 a pound.

While the stronger dollar has sent gold and silver prices lower, the losses for copper have been especially steep. Copper futures have fallen for five straight weeks, down 16 percent over that time, a sign that investors are worried the trade war will impair construction, manufacturing and power generation.

Wholesale gasoline rose 1.7 percent to $2.11 a gallon. Heating oil added 0.5 percent to $2.13 a gallon. Natural gas sank 1.6 percent to $2.75 per 1,000 cubic feet.

The dollar rose to 112.30 yen from 112.46 yen. The euro edged up to $1.1677 from $1.1670.

France's CAC 40 advanced 0.4 percent and Germany's DAX rose 0.4 percent. Britain's FTSE 100 gained 0.1 percent.

Asian markets finished mostly higher led by Japan, where the Nikkei 225 jumped 1.9 percent as the yen weakened against the dollar, which helps exporters. South Korea's Kospi advanced 1.1 percent to and Hong Kong's Hang Seng index added 0.2 percent.

8410

 

[bigdog]

https://www.usnews.com/news/busines...-drift-lower-as-china-data-trade-cast-shadows

Stocks Fall as Crude Oil Prices Drop 4 Percent; Banks Climb
US stock indexes dip as oil prices fall and energy companies turn lower, but banks rise with interest rates.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Major U.S. indexes closed mostly lower Monday as investors bought banks but sold most other types of stocks, including health care and technology companies. Energy stocks sank along with oil prices.

Oil prices fell more than 4 percent after U.S. officials suggested the U.S. will take a softer stance on countries that import oil from Iran after sanctions on Iran's energy sector go back into effect in November. Banks rose along with interest rates as well as a solid second-quarter report from Bank of America. A strong forecast gave Deutsche Bank its biggest gain in more than a year.

Amazon jumped in midday trading as investors expected strong sales during the company's annual Prime Day promotion, one of its largest sales days of the year, but the stock gave up much of that gain following problems with the company's website. Most other groups of stocks lost ground, and about two-thirds of the companies on the New York Stock Exchange finished lower.

Stocks finished at five-month highs Friday as investors remained optimistic about the U.S. economy even as they worried about the trade war between the U.S. and China.

"We're coming off of a very strong week last week where the market finally started to focus on the expectation of a very strong earnings season," said Sunitha Thomas, a portfolio advisor for Northern Trust Wealth Management. She said companies are likely to report big increases in profit and revenue, and while investors are looking for hints the trade war is affecting company forecasts and supply chains, there were no signs of that on Monday.

The S&P 500 index lost 2.88 points, or 0.1 percent, to 2,798.43. The Dow Jones Industrial Average rose 44.95 points, or 0.2 percent, to 25,064.36 as Goldman Sachs, JPMorgan Chase, and Boeing climbed. The Nasdaq composite fell 20.26 points, or 0.3 percent, to 7,805.72.

The Russell 2000 index of smaller-company stocks declined 8.54 points, or 0.5 percent, to 1,678.54.

Bank of America's second-quarter profits jumped, as like other big banks, it got a big boost from the corporate tax cut at the end of 2017 and from higher interest rates. Unlike Wells Fargo and Citigroup, which disclosed their results Friday, Bank of America did better than Wall Street expected. Its stock rose 4.3 percent to $29.78.

Deutsche Bank jumped 8 percent to $12.14 after it said its earnings will be considerably higher than analysts expected. Deutsche Bank stock has tumbled as the company has taken three years of losses based on high costs and big fines and penalties linked to past misconduct.

Benchmark U.S. crude fell 4.2 percent to $68.06 in New York. Brent crude, used to price international oils, fell 4.6 percent to $71.84 a barrel in London.

U.S. officials said countries and businesses that import oil from Iran could avoid penalties if they reduce those imports significantly. Recently the U.S. government was pressuring countries to stop buying Iranian oil entirely. The U.S. will reinstitute sanctions on Iran's energy sector in early November as a result of the American withdrawal from the Iran nuclear deal.

Tribune Media and Sinclair Broadcast Group both nosedived after the Federal Communications Commission said it has concerns about Sinclair's plan to buy Tribune. Right-leaning TV station operator Sinclair is the largest operator of local TV stations in the U.S., and it has proposed selling some of its own TV stations as part of the $3.9 billion deal.

Tribune Media plunged 16.7 percent to $32.12 and Sinclair skidded 11.7 percent to $29.10.

Online retail giant Amazon jumped as much as 1.6 percent at the start of its Prime Day promotion, but finished with a gain of 0.5 percent at $1,822.49. Still, Amazon is up 56 percent in 2018 and is responsible for about 19 percent of the total return of the S&P 500 over that time, according to S&P Dow Jones Indices.

Netflix plunged 13.2 percent in aftermarket trading after it said it didn't gain as many subscribers as it expected in the second quarter. Its estimate for third-quarter subscriber growth also fell short of analysts' projections. The streaming video company's shares have doubled this year, but if the late move is any indication the stock could be on track for its biggest loss in two years on Tuesday.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.85 percent from 2.83 percent. High-dividend companies like real estate investment trusts fell as investors who wanted income bought bonds instead.

Arconic, a company that makes aluminum parts for companies in the aerospace and automobile industries, soared after the Wall Street Journal reported that private equity firms are interested in buying it. The stock climbed 10.5 percent to $19.20. It has fallen almost 40 percent since mid-January.

Gold fell 0.1 percent to $1,239.70 an ounce. Silver was unchanged at $15.81 an ounce. Copper lost 0.4 percent to $2.76 a pound.

Wholesale gasoline skidded 5 percent to $2 a gallon. Heating oil dropped 3.7 percent to $2.05 a gallon. Natural gas added 0.3 percent to $2.76 per 1,000 cubic feet.

The dollar stayed at 112.30 yen. The euro climbed to $1.1714 from $1.1677.

Germany's DAX rose 0.2 percent while the CAC 40 in France dipped 0.4 percent. The FTSE 100 index in Britain dropped 0.8 percent. Hong Kong's Hang Seng edged 0.1 percent higher and the Kospi in South Korea fell 0.4 percent.

 

[bigdog]

https://apnews.com/3887ed38cd944f9e...nd-as-tech-and-household-goods-companies-rise

US stocks rebound as tech and household goods companies rise

NEW YORK (AP) — U.S. stocks rallied Tuesday as retailers, technology and household goods companies all made solid gains and helped the market shake off a weak start. Netflix slumped after investors were disappointed with the streaming video company’s subscriber growth.

Stocks skidded at the start of trading as investors sold some of their recent favorites including Facebook and Apple. But those stocks later recovered and Netflix narrowed its losses. Technology companies also turned higher and strong results from Johnson & Johnson pulled health care stocks upward.

Federal Reserve Chairman Jerome Powell delivered a positive view of the economy as he told Congress that he expects the Fed to keep gradually raising interest rates. Powell said the Fed believes the economy will stay strong and inflation will remain at around 2 percent for the next few years. Stocks have fallen previous times that Powell gave major addresses, but they didn’t do so on Tuesday.

Investors focused on company earnings, which aside from Netflix were mostly good. Financial services company Charles Schwab and regional bank Comerica both rose.

“Double-digit earnings growth for this quarter and this full calendar year remains on track, and a 10 percent gain in earnings next year is also still doable,” said Sam Stovall, chief investment strategist for CFRA.

While investors have been buying U.S. stocks and selling foreign indexes this year, Stovall said earnings growth for companies in overseas markets will probably improve in 2019 while U.S. profit growth slows down. That could make non-U.S. markets more appealing.

The S&P 500 index rose 11.12 points, or 0.4 percent, to 2,809.55 after it dropped 9 points at the start of trading. The Dow Jones Industrial Average gained 55.53 points, or 0.2 percent, to 25,119.89. The Nasdaq composite jumped 49.40 points, or 0.6 percent, to 7,855.12 and surpassed the record high it set last week. The Russell 2000 index of smaller-company stocks rose 8.72 points, or 0.5 percent, to 1,687.26.

Companies that sell clothing, food and household goods made solid gains. Ralph Lauren advanced 2.6 percent to $133.30 and PepsiCo climbed 1.7 percent to $114.88. Amazon as it said sales in the first hours of its annual Prime Day promotion improved compared to last year in spite of website problems. The company said it’s resolving those issues. The stock rose 1.2 percent to $1,843.93.

Netflix’s weak subscriber totals sent the stock down 5.2 percent to $379.48. The company has regularly beaten its own subscriber forecasts but failed to do so in the second quarter and its third-quarter estimate was lower than analysts expected. Things looked far worse for Netflix in early trading as the stock plunged 14.1 percent before recovering most of that drop. Even with Tuesday’s loss, the stock is up 98 percent this year.

Johnson & Johnson’s second-quarter profit grew thanks to better results from its prescription drug business, and it posted higher sales than analysts expected. The stock gained 3.5 percent to $129.11.

Financial services company Charles Schwab climbed 3.6 percent to $52.88 after it surpassed Wall Street forecasts in the latest quarter.

UnitedHealth, the largest U.S. health insurance company, once again beat expectations in the latest quarter and raised its annual profit forecast. But the company’s spending on medical costs was higher than analysts expected, and the stock lost 2.6 percent to $250.29. Investors worried that other health insurers would have similar problems, and competitors Anthem and Humana also slipped.

Advertising companies sank after Omnicom said its business in North America decreased in the second quarter and its U.K. business also shrank. The advertising conglomerate lost 9.5 percent to $70.69 and Interpublic Group shed 6.1 percent to $22.26.

The European Union and Japan signed a broad trade deal Tuesday that will eliminate nearly all tariffs across a third of the global economy. Japanese consumers will pay lower prices for European wine and pork, while Japanese machinery parts, tea and fish will get cheaper for Europe. The deal has been in the works for years and contrasts with the more protectionist approach of U.S. President Donald Trump.

Bond prices were little changed. The yield on the 10-year Treasury note remained at 2.86 percent.

Benchmark U.S. crude erased an early loss and finished little changed at $68.08 a barrel in New York. Brent crude, used to price international oils, picked up 0.4 percent to $72.16 a barrel in London.

Wholesale gasoline gained 1.2 percent to $2.03 a gallon. Heating oil added 0.8 percent to $2.07 a gallon. Natural gas fell 0.7 percent to $2.74 per 1,000 cubic feet.

Metals prices continued to fall. Gold dripped 1 percent to $1,227.30 an ounce. Silver sank 1.2 percent to $15.62 an ounce. Copper fell 0.6 percent to $2.75 a pound. All three are near their lowest prices in a year.

The dollar rose to 112.83 yen from 112.30 yen. The euro fell to $1.1664 from $1.1714.

Germany’s DAX jumped 0.8 percent and the CAC 40 in France added 0.2 percent. The British FTSE 100 index rose 0.3 percent.

Japan’s benchmark Nikkei 225 gained 0.4 percent after reopening from a public holiday. South Korea’s Kospi lost 0.2 percent and Hong Kong’s Hang Seng shed 1.3 percent.

 

[bigdog]

https://www.usnews.com/news/busines...s-ease-after-rallying-on-solid-us-performance

US Stocks Edge Higher as Airlines, Railroads and Banks Jump
US stocks finish with modest gains as transportation companies including railroads and airlines rose following strong earnings reports and so do banks.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Big gains for banks and transportation companies like airlines and railroads took U.S. stock indexes slightly higher Wednesday. Other parts of the market didn't move much.

United Continental had its best day in two years after it said strong demand is resulting in higher ticket prices, while railroad company CSX said it's still cutting costs and improving operations. Their competitors also jumped.

Banks and other financial companies got a boost from strong second-quarter results, and Warren Buffett's Berkshire Hathaway made its biggest gain in almost seven years after it loosened its rules on stock buybacks.

Brad McMillan, chief investment officer for Commonwealth Financial Network, said the combination of strong consumer spending, rising business investment and good economic data is likely to lead to another quarter of strong earnings growth.

"Everything is going right at the moment," he said. "This quarter's earnings are going to reflect that."

The S&P 500 index rose 6.07 points, or 0.2 percent, to 2,815.62. The Dow Jones Industrial Average added 79.40 points, or 0.3 percent, to 25,199.29. The Nasdaq composite fell 0.67 points to 7,854.44. The Russell 2000 index of smaller-company stocks gained 4.61 points, or 0.3 percent, to 1,691.87.

Stocks have been rising this month, even as trade tensions with China continue to mount, as investors anticipate solid second-quarter earnings reports from U.S. companies. The S&P 500 is up 3.6 percent so far in July.

United Continental surpassed Wall Street projections and said strong demand is resulting in higher prices as the summer travel season sets in. Its stock surged 8.8 percent to $79.

CSX said its profit climbed 72 percent in its latest quarter as it kept cutting costs and improving its operations. The results were stronger than analysts expected and the stock added 7.1 percent to $69.

Maintenance supply company W.W. Grainger made the biggest gain on the S&P 500 after it blew past analysts' estimates in the latest quarter. The company posted strong growth in the U.S. with more business with both large and medium size customers and it raised its forecasts for the year. The stock jumped 11.2 percent to $338.99.

Berkshire Hathaway, the conglomerate that owns GEICO and other insurance companies, jumped as investors hoped it would give some of that money back to shareholders by buying back its own stock. The company had $108 billion in cash and short-term investments as of March.

Berkshire's Class B shares jumped 5.3 percent to $200.44 in heavy trading. Other financial companies including Morgan Stanley, M&T Bank and Northern Trust climbed after their quarterly reports.

Federal Reserve Chairman Jerome Powell wrapped up his testimony to Congress about economic and monetary policy. He said the trade war with China might make inflation speed up, but continued to express a very positive view of the state of the economy overall.

McMillan, of Commonwealth, said that Powell's comments were so upbeat that he wonders if the Fed is really reckoning with the risks posed by tariffs and higher interest rates.

"I've never seen a central bank look quite that confident, and frankly it makes me nervous," he said.

While investors are focusing more on company earnings than trade policy at the moment, U.S. uranium mining companies rose after the Commerce Department started an investigation into the impact of uranium imports on U.S. national security. That could result in tariffs, similar to the investigation into steel and aluminum imports that resulted in big taxes on steel from the European Union, Canada, Mexico and Japan.

Energy Fuels, one of the companies that requested the investigation, rose 3.9 percent to $1.60. Uranium Energy added 1.3 percent to $2.34.

The European Union fined Google a record $5 billion Wednesday for using the market dominance of its Android mobile operating system to force handset makers to install Google apps, reducing choice for consumers. The company said it plans to appeal the ruling. A year ago, EU regulators fined Google $2.8 billion for favoring its shopping listings in search results.

Shares of Alphabet, Google's parent company, took a small loss and closed at $1,212.91.

Bond prices slipped. The yield on the 10-year Treasury note rose to 2.88 percent from 2.86 percent. That sent big-dividend stocks like household goods companies and utilities lower.

Benchmark U.S. crude recovered from an early loss and rose 1 percent to $68.76 a barrel in New York. Brent crude, used to price international oils, added 1 percent to settle at $72.90 a barrel in London. U.S. crude has tumbled 8 percent in July but is still up 42 percent over the last 12 months.

Wholesale gasoline climbed 0.9 percent to $2.04 a gallon. Heating oil gained 1 percent to $2.09 a gallon. Natural gas fell 0.7 percent to $2.72 per 1,000 cubic feet.

Gold was little changed and closed at $1,227.90 an ounce. Silver fell 0.3 percent to $15.57 an ounce. Copper rose 0.5 percent to $2.76 a pound.

The dollar inched up to 112.83 yen from 112.83 yen. The euro fell to $1.1646 from $1.1664.

Germany's DAX added 0.8 percent and the British FTSE 100 rose 0.7 percent. The CAC 40 in France gained 0.5 percent.

Japan's benchmark Nikkei 225 gained 0.4 percent and the Kospi in South Korea lost 0.3 percent as the country's government downgraded its forecasts for job creation and growth. Hong Kong's Hang Seng shed 0.2 percent.

 

[bigdog]

https://www.usnews.com/news/busines...drift-as-investors-await-fresh-moves-on-trade

Banks Weaken, but Small-Company Stocks Hold up Well
Trade issues again affected the stock market Thursday as larger companies declined and smaller, more domestically-focused companies rose.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Trade issues again weighed on the market Thursday as representatives of the auto industry told Congress they opposed tariffs on imported cars and car parts being proposed by the Trump administration. Banks and other large U.S. stocks fell, but smaller and more domestically-focused companies climbed.

Aluminum producers sank after Alcoa said the U.S. tariffs on imported aluminum are costing it $12 million to $14 million a month. The tariffs took effect June 1, and Alcoa is one of the first companies to say how much its business is being hurt by the taxes.

The U.S. imported $335 billion in autos and parts in 2017, so tariffs on those items could dwarf the taxes the administration has placed on imported steel, aluminum, and goods from China, although Trump has also threatened to put tariffs on a much larger portion of Chinese imports.

General Motors and Daimler have both warned that tariffs could have major effects on their businesses. Lindsey Bell, investment strategist with CFRA, said most consumers haven't noticed the effects of the tariffs yet, but that will change if cars are taxed.

"It will significantly increase the price of a car and the consumer will definitely pull back" on spending, she said, adding that foreign automakers with factories in the U.S. might move those jobs overseas.

"There's a lot of jobs that could be lost if these tariffs go through," she said.

Companies that make and distribute drugs fell after the Trump administration proposed changes to government rules on drug price rebates.

Major banks fell as interest rates decreased. Weak second-quarter results also weighed on American Express and Bank of New York Mellon. President Donald Trump told CNBC he is "not happy" the Federal Reserve has been raising interest rates, which had little effect on the stock market but did send bond yields and the dollar slightly lower.

The S&P 500 index slid 11.13 points, or 0.4 percent, to 2,804.49. The Dow Jones Industrial Average fell 134.79 points, or 0.5 percent, to 25,064.50. The Nasdaq composite gave up 29.15 points, or 0.4 percent, to 7,825.30.

The Russell 2000 index of smaller-company stocks rose 9.44 points, or 0.6 percent, to 1,701.31. Smaller companies tend to do better than larger ones when trade tensions flare up because they do a greater proportion of their sales in the U.S.

General Motors said last month that tariffs on imported cars might cause it to cut jobs in the U.S. Its stock slid 1.4 percent to $39.31 and Tesla dipped 1.1 percent to $320.23. Auto parts retailer BorgWarner lost 2.1 percent to $45.03.

Second-quarter results and forecasts from U.S. companies continued to dominate trading. American Express fell 2.7 percent to $100.17 after it set aside more money to cover potential bad loans. Bank of New York Mellon lost 5.2 percent to $52.73.

EBay slumped 10.1 percent to $34.53 after it reported lower sales than analysts had forecast.

The president's criticism of the Federal Reserve was unusual, and investors wondered if it could slow the pace of interest rate increases even though the Fed is independent and Trump said he didn't plan to get involved in its decision-making. For the day, the dollar fell to 112.46 yen from 112.84 yen. The euro fell to $1.1644 from $1.1646.

Bond yields were already falling before Trump's comments and they fell a bit more afterward. The yield on the 10-year Treasury note fell to 2.83 percent from 2.87 percent.

Real estate investment trusts and utilities, which pay big dividends, did far better than the rest of the market. Many investors consider those stocks alternatives to bonds, so they tend to do well when bond yields fall.

Cable and internet provider Comcast said it won't make another bid for Twenty-First Century Fox's entertainment business and will instead focus on trying to buy European pay-TV operator Sky. Fox shareholders are scheduled to vote on Disney's $71 billion offer next week.

Comcast gained 2.6 percent to $34.91 while Fox fell 0.1 percent to $46.65. Disney gained 1.3 percent to $112.13, and in London, shares of Sky fell 1.5 percent.

Aluminum producer Alcoa sank 13.3 percent to $41.56 after it forecast a smaller pre-tax profit. It said the tax on imported aluminum is costing it millions every month as it brings in aluminum it has smelted in Canada. Century Aluminum skidded 12.1 percent to $13.09.

Companies that make and distribute drugs fell after the Trump administration proposed changes to government rules on drug price rebates. AbbVie fell 4.7 percent to $89.95 and drugstore and pharmacy benefits manager CVS Health shed 2.6 percent to $66.14.

Benchmark U.S. crude rose 1 percent to $69.46 per barrel in New York. Brent crude, used to price international oils, fell 0.4 percent to $72.58 per barrel in London.

Wholesale gasoline stayed put at $2.04 a gallon and heating oil was unchanged at $2.09 a gallon. Natural gas added 1.8 percent to $2.77 per 1,000 cubic feet.

Gold fell 0.3 percent to $1,224 an ounce and silver fell 1.1 percent to $15.40 an ounce. Copper dropped 2.3 percent to $2.70 a pound.

Germany's DAX fell 0.6 percent, as did France's CAC 40. Britain's FTSE 100 added 0.1 percent.

Asian markets finished mostly lower with Japan's Nikkei 225 losing 0.1 percent and South Korea's Kospi shed 0.3 percent. Hong Kong's Hang Seng fell 0.4 percent.

 

[bigdog]

https://www.usnews.com/news/busines...ocks-rise-amid-fears-of-more-china-us-tariffs

Stocks End Slightly Lower as Traders Shrug off Trade Talk
US stocks finish slightly lower as a jump in bond yields helps banks but hurts big-dividend stocks.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stocks inched lower Friday as bond yields jumped, a shift that helped banks but hurt companies that pay big dividends. The dollar fell after President Donald Trump said China is manipulating its currency.

Companies including Microsoft and Honeywell rose as investors were pleased with their quarterly reports, but General Electric stumbled. Stocks wobbled all week as investors reacted to solid company results as well as heightened trade tensions. The S&P 500 index was virtually flat for the week while the Russell 2000 index, which is made up of smaller companies that do more business inside the U.S., rose 0.6 percent.

In the last two days Trump criticized the Federal Reserve for raising interest rates and said China, said he's willing to put tariffs on all U.S. imports from China, and said China, the European Union and others are harming the U.S. by weakening their currencies and reducing interest rates. Stocks weren't affected, but the dollar declined and short-term bond yields slipped, suggesting investors wondered if the Fed might raise interest rates more slowly.

"If there's a toss-up between raising and not raising (rates), you wonder what role these types of comments might possibly play," said Sameer Samana, a strategist for the Wells Fargo Investment Institute.

Samana said he doesn't think the Fed will make big changes to its policies based on Trump's comments, even if the president starts advocating more forcefully for lower rates. But it's something investors will have to think about.

"We think the Fed has independence and they'll continue to do the right thing," he said. "This is one more item that just creates noise in markets."

The S&P 500 index dipped 2.66 points, or 0.1 percent, to 2,801.83. The Dow Jones Industrial Average lost 6.38 points to 25,058.12. The Nasdaq composite gave up 5.10 points, or 0.1 percent, to 7,820.20. The Russell 2000 index of smaller-company stocks fell 4.50 points, or 0.3 percent, to 1,696.81.

Short-term bond yields inched higher. The yield on the 2-year Treasury note rose to 2.60 percent from 2.59 percent.

Long-term bond prices dropped. The yield on the 10-year Treasury note rose to 2.90 percent from 2.85 percent. That helped banks because bond yields are used to set interest rates on many kinds of loans including mortgages. JPMorgan Chase gained 1.3 percent to $111.28 and Bank of America picked up 1.6 percent to $30.13.

The dollar dropped sharply, to 111.52 yen from 112.46 yen. The euro rose to $1.1726 from $1.1644.

Microsoft continued to set records after its fiscal fourth-quarter results topped Wall Street forecasts and its cloud computing division continued to grow. The company said it's being helped by its rivalry with Amazon, because some retailers are reluctant to team up with Amazon on cloud computing services while they compete with Amazon in sales. The stock climbed 1.8 percent to $106.27.

General Electric lost 4.4 percent to $13.12 after it said its power business continued to struggle as revenue and orders decreased. GE, which has been selling and splitting off businesses, also cut its forecast for how much cash its businesses will generate.

In a taped interview with CNBC, Trump said "I'm willing to go to 500," referring roughly to the $505.5 billion in goods the U.S. imported last year from China. Earlier this month the U.S. placed import taxes on $34 billion in goods imported from China and Beijing responded in kind. The Trump administration is considering tariffs on another $200 billion in goods.

The dispute between the world's two largest economies stems from accusations that China steals technology from U.S. companies or forces them to hand over technology to Chinese companies as well as differences over the U.S. trade deficit with China. Investors have worried that the trade war and other disputes involving the U.S. could slow down the global economy.

The People's Bank of China weakened the country's currency against the dollar on Friday. If the yuan continues to depreciate, goods exported to China will become more expensive to consumers there and Chinese exports would also be relatively cheaper. That could balance out suggested increases in tariffs by the Trump Administration.

The yuan has been skidding since February, mostly because of slower economic growth in China and rising interest rates in the U.S.

Benchmark U.S. crude added 1.4 percent to $70.46 a barrel in New York and Brent crude, used to price international oils, gained 0.7 percent to $73.07 a barrel in London.

Wholesale gasoline rose 1.2 percent to $2.07 a gallon. Heating oil edged up 0.7 percent to $2.10 a gallon. Natural gas lost 0.4 percent to $2.76 per 1,000 cubic feet.

Gold rose 0.6 percent to $1,231.10 an ounce. Silver gained 1 percent to $15.55 an ounce. Copper jumped 2.2 percent to $2.76 a pound.

Germany's DAX lost 1 percent and France's CAC 40 slid 0.3 percent. Britain's FTSE 100 gave up 0.1 percent. South Korea's Kospi added 0.3 percent and Hong Kong's Hang Seng gained 0.8 percent. Japan's Nikkei 225 fell 0.3 percent.

8667

 

[bigdog]

https://www.usnews.com/news/busines...ocks-fall-as-trade-tensions-take-center-stage

US Stock Indexes End Unevenly After Day of Listless Trading

By ALEX VEIGA, AP Business Writer

U.S. stock indexes capped a day of listless trading with a mixed finish Monday, as gains by banks and technology companies were offset by losses in other sectors.

Bond yields rose, pointing to a pickup in interest rates on consumer loans, which helped drive bank shares higher. Technology stocks also posted solid gains, adding to the sector's market-leading showing this year. Alphabet, Google's parent company, surged in aftermarket trading after it reported its latest quarterly results.

Those gains were overshadowed by losses in industrial stocks, consumer goods companies and energy, among other sectors. More stocks fell than rose on the New York Stock Exchange.

Stocks mostly drifted in a narrow range for much of the day as investors sized up the latest batch of corporate quarterly results at the start of the busiest week in the reporting season.

"Earnings are coming in better than expected, but you're not getting much of a reaction from the marketplace," said Tom Martin, senior portfolio manager of Globalt Investments. "People are biding their time."

The S&P 500 index rose 5.15 points, or 0.2 percent, to 2,806.98. The Dow Jones Industrial Average fell 13.83 points, or 0.1 percent, to 25,044.29. The Nasdaq gained 21.67 points, or 0.3 percent, to 7,841.87. The Russell 2000 index of smaller-company stocks picked up 1.61 points, or 0.1 percent, to 1,698.41.

The indexes are on pace to finish the month with gains. The S&P 500, the market's benchmark index, is on a three-week winning streak.

Bond prices fell. The yield on the 10-year Treasury rose to 2.96 percent from 2.89 percent late Friday. The increase in bond yields helped lift bank shares. Interest rates on mortgages and other consumer loans tend to move in tandem with bond yields. Rising rates translate into bigger profits for banks. Wells Fargo added 2.8 percent to $58.

A third of the companies in the S&P 500 are set to report second-quarter earnings this week. So far, corporate earnings have been generally better than expected, reinforcing the underlying perception in financial markets that the U.S. economy is performing strongly and that the Federal Reserve will raise interest rates next month.

"The thing that's been actually driving the earnings beats right now is just the fundamental performance of the companies," said Jason Pride, chief investment officer Glenmede's Private Wealth business. "It's a good business environment."

Out of the roughly 20 percent of companies in the S&P 500 that have reported quarterly results so far, 83 percent have turned in earnings that beat Wall Street's expectations, Pride said, noting that company earnings growth so far is running 21 percent higher than in the same quarter last year.

Even so, investors have been expecting companies to outdo analysts' expectations, which is one reason not all stocks are seeing a big bump from positive earnings growth.

"Companies that are coming in a penny or two ahead of expectations, they're basically not getting much of a reward in their stock," said Pride. "That indicates the market is expecting these sorts of beats against earnings."

Among the companies due to report results later this week: Boeing, Facebook, Amazon.com and McDonald's.

Investors bid up shares in Hasbro Monday after the toy maker's latest quarterly earnings topped Wall Street's forecasts. The company was the biggest gainer in the S&P 500, vaulting 12.9 percent to $106.04. Rival Mattel also got a boost, climbing 3.9 percent to $16.59.

Traders hammered Illinois Tool Works after the manufacturer of industrial products and equipment forecast earnings that were well below what analysts were expecting. The company led a sell-off in industrial sector stocks, tumbling 7.2 percent to $136.26.

Fiat Chrysler Automobiles slid 1.8 percent to $18.98 on news that CEO Sergio Marchionne has been replaced unexpectedly due to complications from shoulder surgery last month. The FCA board on Saturday named long-time Jeep executive Mike Manley as CEO, accelerating a transition that was planned for early next year. Boards also named replacements for Marchionne as Ferrari CEO and CNH Industrial chairman. Ferrari fell 2.5 percent to $136.49, while CNH Industrial gave up 1.6 percent to $10.11.

Tesla skidded 3.3 percent to $303.20 after The Wall Street Journal reported that the electric car maker has asked some of its suppliers to refund a portion of what the company has already spent to help it become profitable. The plea raised questions about Tesla's cash position, which has dwindled following some production issues.

Papa John's sank 9.7 percent to $46.56 after the pizza delivery company adopted a shareholder rights plan to keep founder and ousted chairman John Schnatter from buying a majority stake. The company is struggling to distance itself from Schnatter, who resigned this month after his use of a racial slur during a media training session was revealed. Schnatter has since said his resignation was a "mistake" and criticized the company's handling of the incident.

Oil prices fell, erasing gains from earlier in the day. Benchmark U.S. crude dropped 37 cents to settle at $67.89 per barrel in New York. Brent crude, used to price international oils, slipped a penny to close at $73.06.

Halliburton was the biggest decliner in the S&P 500, sliding 8.1 percent to $41.54 after management said that some customers are pulling back on production because of bottlenecks in getting the oil and gas they're producing to market.

The dollar fell to 111.48 yen from 111.52 yen on Friday. The euro weakened to $1.1689 from $1.1726.

Gold declined $5.50 to $1,225.60 an ounce. Silver lost 12 cents to $15.43 an ounce. Copper dipped a penny to $2.75 a pound.

In other energy futures trading, heating oil rose 1 cent to $2.12 a gallon. Wholesale gasoline added 2 cents to $2.09 a gallon. Natural gas fell 4 cents, or 2.8 percent, to $2.72 per 1,000 cubic feet.

Europe, Germany's DAX fell 0.1 percent while the CAC 40 in France slid 0.4 percent. The FTSE 100 index of leading British shares declined 0.3 percent.

Japan's Nikkei 225 tumbled 1.3 percent and South Korea's Kospi dropped 0.9 percent. Hong Kong's Hang Seng added 0.1 percent to 28,256.12.

 

[bigdog]

https://www.usnews.com/news/busines...dvance-backed-by-strong-us-corporate-earnings

US Stock Indexes End Mostly Higher on Solid Earnings Reports

By ALEX VEIGA, AP Business Writer

The major U.S. stock indexes finished mostly higher Tuesday as investors welcomed strong corporate earnings reports from Google parent Alphabet and other companies.

Gains by technology companies and health care stocks outweighed losses in consumer goods manufacturers, retailers and other sectors.

Smaller-company stocks, which have been beating the rest of the market this year, turned sharply lower as investors weighed the implications of the Trump administration's decision to send billions in emergency aid to farmers hurting from tariffs stemming from the U.S. trade dispute with China.

Tariffs also weighed on Whirlpool's latest quarterly results, giving the appliance maker its worst day in more than 30 years.

"Investors are focused on the good news on earnings and the economy, but they're still a bit cautious when it comes to the market moving higher, and that's because of all the news flow on geopolitical events and tariffs," said Jeff Kravetz, regional investment strategist at U.S. Bank Private Wealth Management.

The S&P 500 index rose 13.42 points, or 0.5 percent, to 2,820.40. The Dow Jones Industrial Average gained 197.65 points, or 0.8 percent, to 25,241.94. The Nasdaq composite lost 1.11 points to 7,840.77. The Russell 2000 index of smaller-company stocks had its worst day in a month, sliding 18.22 points, or 1.1 percent, to 1,680.20.

More stocks fell than rose on the New York Stock Exchange. The S&P 500, the market's benchmark index, is on a three-week winning streak.

Alphabet gained 3.9 percent to $1,258.15 after the company reported second-quarter earnings late Monday that topped Wall Street's expectations, even as it booked a $5.1 billion charge to cover a fine levied by European regulators.

Harley-Davidson vaulted 7.7 percent to $44.63 after the motorcycle manufacturer's latest quarterly earnings came in well ahead of what analysts were expecting. The company also said it's planning strategic changes as tariffs affect its business.

Health care sector stocks got a lift from a couple of companies that reported strong quarterly results.

Biogen added 4.1 percent to $372.84. The drugmaker also raised its forecast for the year. Shares in Eli Lilly & Co., which in addition to reporting solid earnings said it will spin off its animal health business, gained 5 percent to $93.35.

This is the busiest week for the second-quarter earnings season, with roughly a third of companies in the S&P 500 scheduled to report, including Amazon, Facebook, Boeing and Ford. Of the 17.4 percent of the companies in the S&P 500 that had issued quarterly results as of Monday, some 71 percent reported earnings and revenue that beat analysts' forecasts, according to S&P Global Market Intelligence. That's reinforced the underlying perception in the financial markets that the U.S. economy is performing strongly and that the Federal Reserve will raise interest rates again next month.

Even so, traders remain wary of global trade tensions, which have ratcheted up in recent weeks as the Trump administration has sought to renegotiate trade pacts with China, Canada and European nations, resorting to imposing tariffs on imports of aluminum, steel and other goods. The strategy has prompted U.S. trading partners to retaliate, creating risks for the economy.

On Tuesday, the Trump administration announced a $12 billion plan to assist farmers who have been hurt by President Donald Trump's trade disputes with China and other trading partners. The plan, which focuses on Midwest soybean producers and others targeted by retaliatory measures, would include direct assistance for farmers, purchases of excess crops and trade promotion activities aimed at building new export markets.

The move sent shares in several agriculture sector companies higher. Farming equipment manufacturer Deere & Co. rose 3.2 percent to $139.84. Fertilizer maker Mosaic added 2.3 percent to $29.02.

The aid plan also prompted the sell-off in small-company stocks, which tend to be more domestically focused and had climbed in recent months as the dollar got stronger and investors worried about trade. Those conditions changed after the White House proposed its aid package, said Quincy Krosby, chief market strategist at Prudential Financial.

"Seeing the government offer aid to the farmers perhaps has given the market a bit of a belief that if any other sector or subsector that gets hurt temporarily by these ongoing trade issues, perhaps they too will receive aid," she said.

Whirlpool isn't expecting much relief from the impact of U.S. tariffs on steel and aluminum imports.

In a filing, the company blamed higher raw materials costs on the tariffs, and said it expects more of the same in the second half of 2018. That could require Whirlpool to modify its business practices and could have "a material adverse effect on our financial statements in any particular reporting period," the company said.

Investors hammered Whirlpool's shares Tuesday. The stock tumbled 14.5 percent to $128.82.

Bond prices rose. The yield on the 10-year Treasury fell to 2.95 percent from 2.96 percent.

Benchmark U.S. crude climbed 63 cents, or 0.9 percent, to settle at $68.52 per barrel in New York. Brent crude, used to price international oils, gained 38 cents to $73.44 per barrel in London.

The pickup in oil prices helped lift energy sector stocks. Pioneer Natural Resources added 3.2 percent to $187.08.

The dollar fell to 111.22 yen from 111.48 yen on Monday. The euro weakened to $1.1683 from $1.1689.

Gold slipped 10 cents to $1,225.50 an ounce. Silver added 10 cents to $15.52 an ounce. Copper gained 6 cents to $2.81 a pound.

In other energy futures trading, heating oil rose 1 cent to $2.13 a gallon. Wholesale gasoline was little changed at $2.09 a gallon. Natural gas added a penny to $2.73 per 1,000 cubic feet.

Markets in Europe finished solidly higher despite a survey that indicated economic growth across the 19-country eurozone moderated at the start of the third quarter. Germany's DAX rose 1.1 percent and the CAC 40 in France added 1 percent. The FTSE 100 index of leading British shares gained 0.7 percent.

Major indexes in Asia also finished higher. Japan's Nikkei 225 gained 0.5 percent, while South Korea's Kospi added 0.5 percent. Hong Kong's Hang Seng jumped 1.4 percent. Australia's S&P-ASX 200 rose 0.6 percent.

 

[bigdog]

https://www.usnews.com/news/busines...ising-after-corporate-gains-boost-wall-street

Tech Companies Lead US Stock Rally Amid Trade Progress Signs
A strong performance by technology stocks and signs of progress in the trade dispute between the U.S. and the European Union powered the market to its third consecutive gain Wednesday.

By ALEX VEIGA, AP Business Writer

A strong performance by technology stocks and signs of progress in the trade dispute between the U.S. and the European Union powered the market to its third consecutive gain Wednesday. The Nasdaq composite closed at an all-time high.

The major stock indexes jumped in the last half-hour of trading amid reports that a meeting between President Donald Trump and an EU delegation had yielded an agreement to work on averting a budding dispute between the two trading partners.

Health care and industrial stocks also posted solid gains. Phone companies and other high-dividend, safe-play stocks lagged the broader market. Homebuilders slumped on government data showing sales of new U.S. homes fell in June.

Prior to the developments out of Washington, stocks had held on to modest gains for most of the day as investors drew encouragement from the latest batch of quarterly earnings results.

"Tariffs haven't had an enormous impact on earnings, particularly in the manufacturing sector," said Jeramey Lynch, global investment specialist at J.P. Morgan Private Bank. "We haven't seen that so far. Earnings have still been strong because the potential impacts so far of tariffs are being more than offset by what we see as a very favorable macroeconomic backdrop."

The S&P 500 index notched its best day in more than a month, climbing 25.67 points, or 0.9 percent, to 2,846.07. The Dow Jones Industrial Average surged 172.16 points, or 0.7 percent, to 25,414.10. The Nasdaq added 91.47 points, or 1.2 percent, to 7,932.24. The Russell 2000 index of smaller-company stocks followed up its worst day in a month with a gain of 5.01 points, or 0.3 percent, to 1,685.20.

The S&P 500, the market's benchmark index, is on track for its fourth weekly gain in a row.

Investors have been focused this week on company earnings, which have mostly topped Wall Street's expectations. At the same time, traders are still wary of global trade tensions, which have ratcheted up in recent weeks as the U.S. and some of its trading partners have imposed tariffs on certain products and threatened more.

That's why news that the U.S. and the EU are working to mend their frayed trade relationship injected a wave of hopeful buying into the market.

Trump, speaking from the Rose Garden with European Commission President Jean-Claude Juncker, said late Wednesday afternoon that the EU had agreed to buy "a lot of soybeans" and increase its imports of liquefied natural gas from the U.S. Juncker, meanwhile, said the U.S. and EU had agreed to hold off on further tariffs as part of trade talks aimed at averting a crippling trade dispute involving the lucrative automobile market.

"We remind investors only that the devil remains in the details," Terry Haines, macro research analyst at Evercore ISI, wrote in a research note.

The latest wave of corporate report cards also had traders in a buying mood Wednesday, with the technology sector accounting for most of the market's gains. Corning vaulted 11.3 percent to $33.21.

HCA Healthcare jumped 9.2 percent to $118.13 after the hospital operator turned in quarterly results that were better than analysts were expecting.

Coca-Cola rose 1.8 percent to $46.09 after the company served up quarterly earnings and revenue that topped analysts' forecasts. The company noted that its diet sodas are selling better after undergoing some image changes.

Not all companies reported favorable results.

General Motors slumped 4.6 percent to $37.65 after the automaker cut its outlook for the year, mostly due to tariffs on imported steel and aluminum. The diminished expectations overshadowed GM's strong second-quarter results.

Boeing reported quarterly results that exceeded Wall Street's expectations, but also cut its revenue projections for its defense business. Shares in the aerospace giant fell 0.7 percent to $355.92.

Tupperware plunged 16.4 percent to $34.09 after the container maker reported weaker-than-expected sales and lowered its annual forecasts.

Of the roughly 23.6 percent of the companies in the S&P 500 that had issued quarterly results as of early Wednesday, some 71 percent reported earnings and revenue that beat analysts' forecasts, according to S&P Global Market Intelligence.

It was a rough day for homebuilders. Those stocks slumped after the Commerce Department said sales of new U.S. homes fell 5.3 percent last month. The decline occurred even though buyers continue to outnumber sellers in a still-tight housing market. Beazer Homes USA tumbled 7.7 percent to $13.28.

Benchmark U.S. crude added 78 cents, or 1.1 percent, to settle at $69.30 per barrel in New York. Brent crude, used to price international oils, added 49 cents to close at $73.93 per barrel in London.

Bond prices fell. The yield on the 10-year Treasury rose to 2.96 percent from 2.95 percent late Tuesday.

The dollar fell to 110.83 yen from 111.22 yen on Tuesday. The euro strengthened to $1.1699 from $1.1683.

Gold gained $6.30 to $1,231.80 an ounce. Silver added 7 cents to $15.59 an ounce. Copper rose 1 cent to $2.82 a pound.

In other energy futures trading, heating oil rose 2 cents to $2.15 a gallon. Wholesale gasoline added 3 cents to $2.12 a gallon. Natural gas gained 4 cents to $2.78 per 1,000 cubic feet.

Major stock indexes in Europe finished lower. Germany's DAX lost 0.9 percent and France's CAC 40 slipped 0.1 percent. London's FTSE 100 slid 0.7 percent.

In Asia, Tokyo's Nikkei 225 gained 0.5 percent and Hong Kong's Hang Seng rose 0.9 percent. Seoul's Kospi fell 0.3 percent. Sydney's S&P-ASX 200 declined 0.3 percent.

 

[bigdog]

https://www.usnews.com/news/busines...ostly-lower-on-easing-of-us-eu-trade-tensions

Facebook-Led Tech Slump Dims Broader Gains for US Stocks
A steep drop in Facebook weighed on U.S. stocks Thursday, snapping a three-day winning streak for the S&P 500 and erasing more than $100 billion of the social media giant's market value.

By ALEX VEIGA, AP Business Writer

A plunge in Facebook shares weighed on U.S. stocks Thursday, erasing more than $100 billion of the social media giant's market value and snapping a three-day winning streak for the S&P 500 index.

Facebook's tumble led a sell-off in technology companies that offset solid gains in other areas of the market, including industrial and energy stocks and consumer goods companies. Small-company stocks did better than the rest of the market.

The broader gains reflect another round of strong company earnings and fresh optimism among investors that trade tensions between the U.S and European Union may be on the mend.

"It's a shock what happened to Facebook, but that little improvement in the trade picture and the continuation of the earnings results have just been spectacular," said Ted Theodore, portfolio manager at TrimTabs Asset Management.

The S&P 500 index dropped 8.63 points, or 0.3 percent, to 2,837.44. The Dow Jones Industrial Average climbed 112.97 points, or 0.4 percent, to 25,527.07. The Nasdaq composite index lost 80.05 points, or 1 percent, to 7,852.18.

The Russell 2000 index of smaller-company stocks gained 10.16 points, or 0.6 percent, to 1,695.36. More stocks rose than fell on the New York Stock Exchange.

The S&P 500, the market's benchmark index, is still on track for its fourth weekly gain in a row.

Facebook sank 19 percent to $176.26 after the social media giant said that its user base and revenue grew more slowly than expected in the second quarter, and that it expects slower revenue growth ahead. The slower growth came about as the company grappled with privacy scandals. All told, $119 billion of its value was wiped out, more than the entire value of General Electric.

"For such a big company to suffer such a significant decrease in price is really amazing to watch," said Erik Davidson, chief investment officer at Wells Fargo Private Bank.

Investors have been focused on the mostly favorable run of company quarterly earnings the past couple of weeks. At the same time, traders have been wary of global trade tensions, which have ratcheted up in recent weeks as the U.S. and some of its trading partners imposed tariffs and threatened more.

But talks held late Wednesday between President Donald Trump and a European Union delegation gave markets cause for encouragement after both sides agreed to work on a pact to dismantle trade barriers.

Facebook wasn't the only big company to report disappointing quarterly results or outlooks.

Ford lost 6 percent to $9.89 after the automaker disclosed a sharp drop in quarterly profits and said it would undertake a restructuring that will cost $11 billion over the next three to five years.

Mattel also slumped, dropping 4.2 percent to $15.61 after the maker of Barbie and Hot Wheels reported a loss that was larger than analysts were expecting. It also said it would eliminate more than 2,200 jobs.

Reports from other companies put investors in a buying mood.

D.R. Horton jumped 10.9 percent to $43.84 after the homebuilder reported earnings and revenue that easily beat Wall Street's forecasts. It also announced a $400 million share repurchase program.

Qualcomm vaulted 7 percent to $63.58 after the chipmaker reported earnings that beat analysts' expectations and said it would abandon a bid to acquire NXP.

Mondelez International, which sells Oreo cookies and Cadbury chocolate, climbed 4.3 percent to $43.27 after the company's latest quarterly earnings and revenue topped analyst estimates. Traders also bid up shares in rival Hershey, which gained 7.4 percent to $99.66.

Several airlines also traded higher, contributing to industrial sector gains. Alaska Air Group surged 9.6 percent to $64.76, while Southwest Airlines jumped 8.4 percent to $56.70. American Airlines added 4.8 percent to $40.02.

Benchmark U.S. crude rose 31 cents to settle at $69.61 per barrel in New York. Brent crude, used to price international oils, added 61 cents to close at $74.54.

The pickup in oil prices gave a boost to some energy stocks. Marathon Petroleum climbed 7.3 percent to $80.16.

Bond prices fell, sending yields higher. The yield on the 10-year Treasury rose to 2.98 percent from 2.97 percent.

The dollar rose to 111.23 yen from 110.83 on yen Wednesday. The euro weakened to $1.1645 from $1.1699.

Gold fell $6.10 to $1,225.70 an ounce. Silver lost 9 cents to $15.50 an ounce. Copper was little changed at $2.82 a pound.

In other energy futures trading, heating oil rose 3 cents to $2.18 a gallon. Wholesale gasoline added 4 cents to $2.16 a gallon. Natural gas added a penny to $2.78 per 1,000 cubic feet.

Major stock indexes in Europe rose. Germany's DAX jumped 1.8 percent while France's CAC 40 added 1 percent. Britain's FTSE 100 gained 0.1 percent. In Asia, Japan's Nikkei 225 lost 0.1 percent while South Korea's Kospi added 0.7 percent. Hong Kong's Hang Seng lost 0.5 percent.

 

[bigdog]

The Australian sharemarket has closed the week higher, hitting a fresh 10-year high on the back of improved market sentiment and commodity prices.

The S&P/ASX 200 index rose 14.3 points, or 0.2 per cent, this week to 6300.2, beating the previous 10-year high by 14 points.

https://www.usnews.com/news/busines...mostly-higher-defying-facebook-led-tech-slump

Tech Stocks Lead Market Lower Again as Twitter Takes a Dive
Technology companies pulled U.S. stocks lower, led by a nosedive in Twitter after the company reported weak user numbers and warned investors that more could be on the way.

By ALEX VEIGA, AP Business Writer

Technology companies led a slide in U.S. stocks Friday, adding to the market's losses from another tech-driven sell-off a day earlier.

Twitter plunged more than 20 percent, its second-biggest loss since going public in 2013, after the social media network said its monthly users declined in the second quarter.

While technology stocks made up much of the market's drop, smaller-company stocks fell more than the rest of the market. The losses outweighed gains in banks and phone companies.

Even so, the S&P 500, the market's benchmark index, had its fourth weekly gain in a row.

The week ended largely as it began, with investors focused on a cavalcade of company earnings reports, most of which have topped Wall Street's forecasts.

"There were clearly high expectations coming into second-quarter earnings and we've seen where companies have performed well relative to those expectations, they've typically been rewarded, and where they have fallen short of those expectations, either in current quarter or future guidance, is where you're seeing (selling) occur," said Bill Northey, senior vice president at U.S. Bank Wealth Management.

The S&P 500 index fell 18.62 points, or 0.7 percent, to 2,818.82. The Dow Jones Industrial Average slid 76.01 points, or 0.3 percent, to 25,451.06. The Nasdaq composite index, which is heavily weighted with technology companies, lost 114.77 points, or 1.5 percent, to 7,737.42. The Russell 2000 index of smaller-company stocks gave up 32.02 points, or 1.9 percent, to 1,663.34.

This was the busiest stretch of the second-quarter earnings season, with roughly a third of companies in the S&P 500 reporting results. While some companies posted results that fell short of analysts' forecasts, most delivered better-than-expected results and favorable outlooks.

Of the 49 percent of the companies in the S&P 500 that had issued quarterly results as of Friday, some 65 percent reported earnings and revenue that beat analysts' forecasts, according to S&P Global Market Intelligence.

That's reinforced the underlying perception in the financial markets that the U.S. economy is performing strongly and that the Federal Reserve will raise interest rates again next week.

The government said Friday that the U.S. economy surged in the April-June quarter to an annual growth rate of 4.1 percent. That's the fastest pace since 2014, driven by consumers who began spending their tax cuts and exporters who rushed to get their products delivered ahead of retaliatory tariffs.

The economic snapshot had been widely expected, so it didn't have a noticeable impact on the market or the sell-off in technology stocks.

For the second straight day a social media company led a steep decline in the technology sector. Twitter plummeted 20.5 percent to $34.12 after the company disclosed user totals and a forecast that disappointed investors.

Snap, the company behind the Snapchat messaging app, slid 4 percent to $12.83. Facebook shares gave up 0.8 percent to $174.89 a day after the social media giant led a slide in technology stocks that snapped the S&P 500's three-day winning streak.

Facebook's steep drop, which erased nearly $120 billion of the company's market value, was brought on by its warning to investors that it sees slower revenue growth ahead. With Friday's losses, Facebook shares came within a hair's length of finishing in a bear market, which is defined as a drop of 20 percent from a recent peak.

Other technology companies also had a rough day.

Intel skidded 8.6 percent to $47.68 after the chipmaker's latest quarterly report left analysts concerned about the company's profit margins and key businesses.

Computer hard drive companies contributed to the technology sector losses. Western Digital lost 7.7 percent to $71.13, while Seagate Technology slid 5 percent to $54.69.

CBS dropped 6.1 percent to $54.01, the biggest one-day loss for the stock in more than six years, following reports of sexual misconduct allegations against its CEO, Les Moonves.

Investors bid up shares in companies that reported solid quarterly results.

Expedia Group surged 9.5 percent to $137.79 after the online travel portal's quarterly earnings topped analysts' forecasts. Chipotle Mexican Grill climbed 5.7 percent to $472.30 after the restaurant chain said sales online and at established stores improved in its latest quarter.

Amazon.com rose 0.5 percent to $1,817.27 after the online retailer reported its biggest profit ever as its advertising and cloud computing businesses kept growing.

Benchmark U.S. crude lost 92 cents, or 1.3 percent, to settle at $68.69 per barrel in New York. Brent crude, used to price international oils, fell 25 cents to close at $74.29.

Bond prices rose, sending yields lower. The yield on the 10-year Treasury fell to 2.96 percent from 2.97 percent late Thursday.

The dollar slipped to 111 yen from 111.23 yen on Thursday. The euro strengthened to $1.1656 from $1.1645.

Gold lost $2.70 to $1,223 an ounce. Silver was little changed at $15.49 an ounce. Copper fell 2 cents to $2.80 a pound.

In other energy futures trading, heating oil slid 2 cents to $2.16 a gallon. Wholesale gasoline was little changed at $2.16 a gallon. Natural gas added 4 cents to $2.82 per 1,000 cubic feet.

Major indexes in Europe finished higher. Germany's DAX added 0.4 percent and the CAC 40 in France gained 0.6 percent. Britain's FTSE 100 picked up 0.5 percent. In Asia, Japan's Nikkei 225 index rose 0.6 percent. The Kospi in South Korea picked up 0.3 percent. Hong Kong's Hang Seng index edged 0.1 percent lower.

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[bigdog]

https://www.usnews.com/news/busines...ll-to-start-week-following-wall-street-losses

Another Tech Stock Tumble Pulls US Indexes Sharply Lower
Technology stocks continued to fall on Wall Street, extending their losses from the end of last week.

By STAN CHOE and MARLEY JAY, AP Business Writers

NEW YORK (AP) — Technology stocks tumbled for the third day in a row Monday as a sharp reversal for some of Wall Street's recent favorites worsened. Major U.S. indexes skidded.

Technology companies have done far better than the rest of the market in recent years, but they've fallen after Facebook and Twitter both reported weak user growth in the second quarter. Microsoft and Alphabet slumped Monday and Facebook, Twitter and Netflix have all fallen at least 20 percent from their record highs earlier this month.

"Is the stock 20 percent less valuable, or was it misvalued to begin with?" said Mark Hackett, chief of investment research at financial services firm Nationwide.

Still, Hackett says the drop for high-flying technology companies could become a good thing for the market if investors focus on companies with steadier revenue and more cash, including software makers, banks and industrial firms.

"It would be nice to see a broadening of the strength," he said.

Elsewhere, energy companies climbed along with the price of crude oil but industrial companies like Caterpillar continued to lose ground. Meat producer Tyson became the latest company to cut its profit projections and point to tariffs.

The S&P 500 lost 16.22 points, or 0.6 percent, at 2,802.60, and the Dow Jones Industrial Average fell 144.23 points, or 0.6 percent, to 25,306.83.

The Nasdaq composite has more technology stocks among its ranks, and it fell 107.41 points, or 1.4 percent, to 7,630. The Nasdaq has fallen at least 1 percent for three days in a row, which hadn't happened in three years.

Smaller companies fared as badly as larger ones. The Russell 2000 index slid 10.21 points, or 0.6 percent, to 1,653.13.

Twitter dropped 8 percent to $31.38, extending its 20.5 percent plunge on Friday. Facebook fell another 2.2 percent to $171.06. Netflix, which reported weak subscriber growth in early July, fell 5.7 percent to $334.96.

Hackett, of Nationwide, said that when investors value companies based on measurements like user growth and subscriptions instead of more traditional figures based on earnings, the stocks become vulnerable to big drops.

Even with its recent tumble, the technology sector of the S&P 500 is up almost 26 percent over the last year. The S&P 500 itself is up a bit more than 13 percent over that time.

Energy companies climbed as the price of benchmark U.S. oil spurted higher by 2.1 percent to $70.13 a barrel. Brent crude, the international standard, rose 0.9 percent to $74.97 a barrel in London.

Wholesale gasoline lost 0.1 percent to $2.16 a gallon. Heating oil gained 0.7 percent to $2.17 a gallon. Natural gas rose 0.5 percent to $2.80 per 1,000 cubic feet.

Caterpillar surpassed Wall Street expectations in the second quarter and raised its forecasts for the year as the construction market remained strong. The company said new tariffs will cost it $100 million to $200 million this year, and it will make up for it by raising prices.

That initially encouraged investors, but Caterpillar gave up an early gain and fell 2 percent to $139.75.

Pork and poultry processor Tyson cut its profit forecast because of rising tariffs and uncertainty about trade policies. The stock sank 7.6 percent to $58.72. Monday.

The Federal Reserve will begin a two-day meeting Tuesday. The Fed has said that it may raise rates two more times in 2018, but few economists expect a move at this upcoming meeting.

The Bank of England is expected to raise its key interest rate by a quarter of a percentage point on Thursday as inflation remains high. The Bank of Japan will also meet this week.

The yield on the 10-year Treasury note rose to 2.97 percent from 2.96 percent late Friday. It's been climbing for the last couple of weeks and is close to breaching 3 percent for the first time since May.

CBS stock plunged again as investors wondered if the broadcaster will replace longtime CEO Les Moonves soon. On Friday, a New Yorker article quoted six women accusing Moonves of sexual harassing them.

CBS says Moonves will remain CEO while an outside counsel investigates the allegations against him. The company also postponed its annual shareholders meeting. Its stock lost 5.1 percent to $51.28 Monday after a 6.1 percent drop Friday.

The U.S. jobs report is usually the most anticipated piece of economic data each month, and it arrives on Friday. Both the job market and economy have been strong recently, and economists expect Friday's report to show that employers added 193,000 jobs in July. That would be a slight slowdown from June's growth of 213,000.

Gold slipped 0.1 percent to $1,231.50 an ounce. Silver rose 0.3 percent to $15.54 an ounce. Copper lost 0.4 percent to $2.79 a pound.

Japan's Nikkei 225 fell 0.7 percent, South Korea's Kospi slipped 0.1 percent and the Hang Seng in Hong Kong lost 0.2 percent.

In Europe, France's CAC 40 fell 0.4 percent, and the DAX in Germany dropped 0.5 percent. The FTSE 100 in London was virtually flat.

The dollar held steady at 111 Japanese yen. The euro rose to $1.1710 from $1.1656, and the British pound rose to $1.3135 from $1.3113.