NYSE Dow Jones finished today at:

[bigdog]

Markets in Shanghai, Taiwan, Japan and South Korea were closed for national holidays.

https://www.usnews.com/news/busines...-fall-on-reports-china-us-trade-talks-put-off

Global Stocks Dip on Report China Calls off US Trade Talks
Global stock markets slip after the US and China officially put new tariffs on each other's goods and China reportedly rebuffed a plan for talks with the U.S. Industrial and basic materials companies fall.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Global stocks took small losses Monday after China reportedly pulled out of trade talks with the U.S. Industrial companies and banks suffered some of the worst declines among American stocks.

The U.S. and China officially began taxing larger amounts of each other's goods Monday, and the Wall Street Journal reported that China pulled out of talks that could have led to a new round of negotiations to end the trade war.

The U.S. is now taxing another $200 billion in Chinese imports at a rate of 10 percent, and China added taxes of 5 to 10 percent on $60 billion in U.S. products. Oil prices jumped after OPEC decided not to produce more oil.

Technology and health care companies rose, leaving U.S. indexes only slightly lower.

"The market's been remarkably resilient over the last couple of months while trade tensions were heating up," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.

Sandven said the trade spat will endure past the midterm elections in November, but stocks are likely to keep rising because of strong earnings growth for U.S. companies, combined with low inflation and low interest rates.

The S&P 500 index fell 10.30 points, or 0.4 percent, to 2,919.37. The Dow Jones Industrial Average lost 181.45 points, or 0.7 percent, to 26,562.05. Both the S&P 500 and Dow set record highs last week.

The Russell 2000 index of smaller-company stocks dropped 7 points, or 0.4 percent, to 1,705.32. The Nasdaq composite rose 6.29 points, or 0.1 percent, to 7,993.25.

After a volatile stretch early this year, the S&P hasn't risen or fallen 1 percent in a day since late June.

Sandven noted that this year's stock gains have been concentrated in technology, retail and health care companies. That was the case Monday, as Apple gained 1.4 percent to $220.79 and drug and infant formula maker Abbott Laboratories advanced 3.5 percent to $71.44. Sandven said it would be an encouraging sign for the market if other sectors do better.

U.S. investors were occupied with other news. OPEC and key allies like Russia decided not to increase their oil output further. Production is falling in some OPEC nations, including Iran, which faces new sanctions from the U.S.

Benchmark U.S. crude gained 1.8 percent to $72.08 a barrel in New York while Brent crude, the international standard for oil prices, rose 3 percent to $81.20 a barrel in London, its highest price in more than three years.

Airlines and other transportation companies fell as investors anticipated they will have to pay higher prices for fuel.

Late Friday Comcast won an auction for majority control of British satellite TV giant Sky. Its final offer was worth about $39 billion and topped an offer from Twenty-First Century Fox, which is already a major Sky shareholder.

In London, Sky shares jumped 8.6 percent. Comcast sank 6 percent to $35.63, while Fox rose 1.5 percent to $45.01. Disney, which is buying Fox, climbed 2.1 percent to $112.77.

Barrick Gold will buy competitor Randgold Resources for $6.1 billion in stock. The merged company will combine Randgold's African mines with Barrick's holdings in the Americas to form the world's largest gold miner.

Barrick rose 5.4 percent to $11.04 and Randgold gained 6.6 percent to $68.14.

Subscription radio company Sirius XM says it's buying music streaming service Pandora Media. The deal will expand its service beyond cars and into homes and other areas. The companies valued the deal at about $3.5 billion in stock.

Sirius sank 10.3 percent to $6.26 and Pandora slid 1.2 percent to $8.98.

An Italian newspaper reported that the Versace group is on the verge of announcing that it will be acquired, and Bloomberg and Reuters reported that luxury fashion and handbag maker Michael Kors is the buyer. The Italian publication, Corriere della Sera, said the deal is worth 2 billion euros ($2.4 billion).

Michael Kors stock skidded 8.2 percent to $66.71.

Markets in Europe edged lower while Asian indexes took sharper losses. Germany's DAX fell 0.6 percent and the CAC 40 in France lost 0.3 percent. The FTSE 100 in Britain dipped 0.4 percent. Hong Kong's Hang Seng index fell 1.6 percent and India's Sensex gave up 1.5 percent. Markets in Japan and South Korea were closed for national holidays.

Marijuana-related companies continued to make dramatic moves. Biotechnology company Intrexon soared 31.5 percent to $19.07 in heavy trading after it said it engineered a strain of yeast to produce chemical compounds found in marijuana consistently and at low cost. Scientists say that's been a problem in researching the drug.

Canadian medical marijuana company Tilray sank 19.1 percent to $99.50, its third consecutive big loss. Before that, the stock's value nearly tripled over the course of a week and a half.

Bond prices fell. The yield on the 10-year Treasury note rose to 3.08 percent from 3.06 percent.

In other commodities trading, wholesale gasoline rose 1.9 percent to $2.05 a gallon. Heating oil added 2.7 percent to $2.29 a gallon. Natural gas gained 2 percent to $3.04 per 1,000 cubic feet.

Gold added 0.3 percent to $1,204.40 an ounce. Silver lost 0.1 percent to $14.34 an ounce. Copper fell 0.8 percent to $2.84 a pound.

The dollar rose to 112.73 yen from 112.52 yen. The euro edged up to $1.1758 from $1.1747.

 

[bigdog]

Markets in Hong Kong and Seoul were closed for holidays.

https://www.usnews.com/news/busines.../asian-stocks-lower-on-us-china-trade-worries

Higher Interest Rates and Oil Prices Send US Stocks Lower
U.S. indexes finished mostly lower as oil prices rise further, which helped energy stocks but hurts transportation companies.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Major U.S. indexes finished mostly lower Tuesday as rising interest rates hurt stocks that pay big dividends and higher oil prices pushed transportation and shipping companies lower. The S&P 500 index fell for the third day in a row.

Oil prices continued to rise after a weekend meeting of OPEC and its allies ended without an increase in oil production. That's helped energy companies, but it is pressuring airlines and other companies that will have to pay more for fuel. Higher oil prices can also ripple through the economy and increase inflation, and that's helped push interest rates higher this week.

On Wednesday the Federal Reserve is expected to increase its benchmark interest rate for the third time this year. Investors have been sure for months that the Fed would raise rates at this meeting, so they'll be focusing on the Fed's economic projections and Chairman Jay Powell's press conference afterward.

"He'll want to say as little as possible about tariffs, about fiscal policy, and say as little as possible about any advice the president may be giving him and the Federal Reserve about how to run monetary policy," said David Kelly, chief global strategist for JPMorgan Funds. But Kelly said the reporters will likely probe Powell's views on all of those topics.

The S&P 500 fell 3.81 points, or 0.1 percent, to 2,915.56. The Dow Jones Industrial Average lost 69.84 points, or 0.3 percent, to 26,492.21. The Nasdaq composite added 14.22 points, or 0.2 percent, to 8,007.47. The Russell 2000 index of smaller-company stocks gained 3.49 points, or 0.2 percent, to 1,708.80.

Bond prices kept falling as the Fed meeting began, sending yields higher. The yield on the 10-year Treasury note rose to 3.10 percent from 3.07 percent a day earlier.

Rising bond yields tend to hurt high-dividend companies, which many income-seeking investors see as substitutes for bonds. Among utilities, Southern Co. fell 2.5 percent to $42.73 and consumer goods maker Procter & Gamble lost 1.4 percent to $83.12.

Stocks usually do well when the Fed starts to raise interest rates because the higher rates reflect solid economic growth, which is associated with strong company profits. But as the rate increases continue, in line with the Fed's goal of keeping inflation in check, the effect on stocks can become negative as economic growth slows.

Oil prices have climbed recently because OPEC isn't producing more oil, while Iran is exporting less after the U.S. withdrew from the international nuclear deal with Iran and announced more sanctions on the country.

Benchmark U.S. crude rose 0.3 percent to $72.28 a barrel in New York. Brent crude, the standard for international oil prices, rose 0.8 percent to $81.87 a barrel in London. Brent crude is at its highest price since November 2014.

ConocoPhillips rose 1.4 percent to $78.11 and Philips 66 added 1.3 percent to $114.88.

Drive-in restaurant chain Sonic jumped 18.7 percent to $43.46 after it agreed to be bought by Inspire Brands, which also owns Arby's and Buffalo Wild Wings. The purchase values Sonic at $43.50 a share, or $1.57 billion. Inspire Brands is controlled by the private equity firm Roark Capital.

XO Group, which runs the wedding marketplace The Knot, jumped 26.3 percent to $34.91 after it accepted a $907 million offer from two funds that own its competitor WeddingWire.

Companies around the world have announced $3.26 trillion in deals this year, according to Dealogic, far above the $2.49 billion in deals that were struck over the first three quarters of 2017. The recent U.S. corporate tax cut and low interest rates have contributed to that trend.

If the Fed does raise interest rates Wednesday, it would be the ninth increase since late 2015 and would take the benchmark rate to a range of 2 percent to 2.25 percent, with another increase expected this year and more to come in 2019.

Wholesale gasoline added 0.6 percent to $2.07 gallon. Heating oil rose 0.8 percent to $2.31 a gallon. Natural gas rose 1.4 percent to $3.08 per 1,000 cubic feet.

Gold rose 0.1 percent to $1,205.10 an ounce. Silver gained 1.1 percent to $14.49 an ounce. Copper fell 0.4 percent to $2.82 a pound.

The dollar rose to 112.93 yen from 112.73 yen. The euro rose to $1.1767 from $1.1758.

The British FTSE 100 index rose 0.7 percent. The DAX in Germany added 0.2 percent and France's CAC 40 gained 0.1 percent.

Tokyo's Nikkei 225 gained 0.3 percent and the Sensex in India slipped 0.1 percent. Markets in Hong Kong and Seoul were closed for holidays.

 

[bigdog]

Fed Raises Rates for 3rd Time This Year With 1 More Expected
Fed raises rates for 3rd time this year amid strong economy, signals another hike in 2018, 3 more next year.

https://www.usnews.com/news/busines...kets-rally-ahead-of-expected-us-fed-rate-hike

US Stocks Dip After Federal Reserve Raises Rates
U.S. stock indexes are wavering between gains and losses after the Federal Reserve raised interest rates for the third time this year in the face of the strengthening economy.

By STAN CHOE, AP Business Writer

NEW YORK (AP) — U.S. stock indexes dipped Wednesday after the Federal Reserve took the latest step in its campaign to pull interest rates gradually higher.

The decision to raise the federal funds rate for a third time this year was widely expected, and stocks initially climbed following the announcement. But the gains faded in the last 30 minutes of trading after Fed Chairman Jerome Powell finished speaking at a news conference. The sharpest losses came from financial stocks, hurt by a drop in Treasury yields, which can crimp lending profits for banks.

The S&P 500 fell 9.59 points, or 0.3 percent, to 2,905.97 after being up as much as 0.5 percent earlier in the day. The Dow Jones industrial average fell 106.93, or 0.4 percent, to 26,385.28, and the Nasdaq composite lost 17.11, or 0.2 percent, to 7,990.37.

Powell said that the U.S. economy is in a "particularly bright moment," which would point to continued increases in rates. But he also said that inflation doesn't seem likely to spike, which would allow the Fed to continue on its gradual path to raise rates off the record lows they set following the 2008 financial crisis.

Investors spent the most energy Wednesday parsing over a phrase that the Fed dropped from its written statement following its rate decision, one that has been included for years, about how the central bank is being "accommodative" and keeping rates low. Did that mean the Fed would shade toward being less aggressive or more?

But Powell said in the press conference that losing the phrase was not a signal of any change in policy expectations.

Investors closely follow every clue about interest rates, which affect the flow of money and the broad economy, because high rates in the past have been the death knell for economic expansions and bull runs for stocks. But analysts say markets can continue to climb as long as this rise in rates is gradual.

"We have more room to run in this economic cycle," said Jon Adams, senior investment strategist for BMO Global Asset Management.

The Fed indicated Wednesday that it expects to raise rates one more time this year, three times in 2019 and once in 2020.

Treasury yields dipped on Wednesday, a step back from their steady rise this year.

The yield on the 10-year Treasury note fell to 3.05 percent from 3.10 percent late Tuesday. It had been close to its highest level since 2011. The two-year Treasury yield, which more closely tracks movements by the Fed, dipped to 2.82 percent from 2.83 percent.

Brian Nick, chief investment strategist at Nuveen, said that it was puzzling that both stocks and bond yields fell following the Fed's move. Usually, when investors think the Fed is going to become more aggressive about raising interest rates, stocks fall but bond yields rise.

Nick said the reaction may be a result of the new 2021 forecasts the Fed gave for the unemployment rate and GDP growth.

Among stocks in the S&P 500, the biggest drop came from Cintas, which provides workers' uniforms, restroom supplies and other products to companies. The company reported better earnings for the latest quarter than analysts expected, but growth in rentals fell short of some forecasts. Cintas lost $11.80, or 5.5 percent, to $201.16.

On the winning side was SurveyMonkey's parent company, SVMK, which surged in its first day of trading. After pricing its initial public offering of stock at $12 per share, SVMK jumped as high as $20.00 during the morning. It closed at $17.24, up 43.7 percent.

In markets abroad, European indexes were mostly steady. France's CAC 40 added 0.6 percent, while Germany's DAX rose 0.1 percent. Britain's FTSE 100 was also up 0.1 percent.

In Asia, Japan's Nikkei 225 rose 0.4 percent, and the Hang Seng in Hong Kong jumped 1.2 percent.

Benchmark U.S. crude oil fell 1 percent to $71.57 per barrel. Brent crude, the international standard, lost 0.6 percent, to $81.34.

In other energy trading, wholesale gasoline fell 0.4 percent to $2.06 a gallon, heating oil slipped 0.2 percent to $2.30 a gallon and natural gas dropped 2 percent to $3.02 per 1,000 cubic feet.

Gold dropped 0.5 percent to $1,199.10 an ounce. Silver fell 0.6 percent to $14.40 an ounce and copper was little changed at $2.83 a pound.

The dollar dipped to 112.85 Japanese yen from 112.93 yen late Tuesday. The euro slipped to $1.1762 from $1.1767, and the British pound fell to $1.3184 from $1.3186.

 

[bigdog]

https://www.usnews.com/news/busines...shares-mixed-after-us-fed-lifts-interest-rate

US Stocks Break Four-Day Losing Skid as Apple, Amazon Climb
Stocks make modest gains on Wall Street as Apple and Amazon, the two most valuable companies on the U.S. market, lead major indexes higher following a four-day losing streak.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — After four days of modest losses, Apple and Amazon led the U.S. stock market to small gains on Thursday. Internet and health care companies rose while mining companies fell with metals prices.

Apple and Amazon are the two most valuable U.S. companies, and analysts said each stock should keep climbing. Other market favorites including Facebook and Google parent Alphabet also rose.

Interest rates slipped for a second day, which led to losses for banks, while the stronger dollar weighed on metals prices and on shares of the companies that mine those metals. Smaller companies, which have struggled in September, also fell.

Scott Wren, senior global equity strategist for the Wells Fargo Investment Institute, said investors have been reluctant to get back into the stock market since the 2008-09 recession, and there are signs that's changing.

"Retail investors have been underinvested for this whole expansion," he said. "The economy is decent. The market is correctly pricing in a relatively low possibility of an all-out trade war."

The S&P 500 index rose 8.03 points, or 0.3 percent, to 2,914. Despite its recent losing streak, the benchmark index is up more than 7 percent since the end of June. With one day left in the third quarter, the S&P 500 is on track for its best quarter since the end of 2013.

The Dow Jones Industrial Average gained 54.65 points, or 0.2 percent, to 26,439.93. The Nasdaq composite climbed 51.60 points, or 0.6 percent, to 8,041.97. The Russell 2000 index of smaller-company stocks dipped 1.08 points, or 0.1 percent, to 1,690.53.

Apple rose after JPMorgan Chase analyst Samik Chatterjee said the stock could climb another 20 percent by the end of next year. Chatterjee said the company was successfully building up its services businesses such as music and payments, which could bring in 20 percent of Apple's annual revenue in the next few years. Chatterjee said the company might make acquisitions in the gaming, automotive or smart speaker businesses.

Apple rose 2.1 percent to $224.95. Elsewhere in the technology sector, Salesforce.com rose 1.3 percent to $160.43. Internet companies also rose. Alphabet rose 1.1 percent to $1,207.36 and Facebook rose 1.1 percent to $168.84.

Amazon rose 1.9 percent to $2,012.98 after Stifel analyst Scott Devitt forecast more revenue for its retail, advertising and web services units and raised his price target to $2,525 a share. That would value Amazon at about $1.2 trillion.

Wren, of Wells Fargo, said many smaller investors have been reluctant to put too much money in the stock market, and with more U.S. workers nearing retirement age, that is probably not going to change. Some experts worry when retail investors hurry into the market because it can be a sign stock prices are going to get too high. But Wren said he's not concerned about that possibility yet.

Bed Bath & Beyond plunged 21 percent to $14.86 after the home goods and furnishings company reported earnings that fell far short of what analysts were expecting. The company also lowered its profit forecast for the rest of the year and said it expects lower sales. Its stock closed at its lowest price since March 2000 and has dropped from $75 in less than four years.

Several other companies that reported quarterly results also traded lower. Conagra Brands, the parent of Chef Boyardee and Hebrew National, fell 8.5 percent to $32.98 after its profit and sales fell short of Wall Street projections. Cruise line operator Carnival gave up 4.8 percent to $63.74 after it said prices for recent bookings have been lower than they were a year ago.

Tesla took a small loss during the day and then dropped 6.1 percent in aftermarket trading after the Securities Commission filed a complaint against CEO Elon Musk. The complaint says Musk made false statements about a plan to take the electric car maker private.

Benchmark U.S. crude rose 0.8 percent to $72.12 per barrel in New York while Brent crude, used to price international oils, added 0.5 percent to $81.72 per barrel in London.

Wholesale gasoline rose 1.2 percent to $2.08 a gallon. Heating oil gained 1 percent to $2.32 a gallon. Natural gas rose 2.6 percent to $3.06 per 1,000 cubic feet.

Bond prices rose again. The yield on the 10-year Treasury note fell to 3.05 percent from 3.06 percent.

The ICE U.S. Dollar index climbed 0.8 percent, which pushed metals prices lower. Gold slid 1 percent to $1,187.40 an ounce. Silver lost 0.8 percent to $14.29 an ounce. Copper fell 1.6 percent to $2.78 a pound.

The dollar rose to 113.42 yen from 112.85 yen. The euro fell to $1.1658 from $1.1762.

The FTSE 100 index in Britain rose 0.5 percent, as did France's CAC 40. Germany's DAX gained 0.4 percent. But Italy's FTSE MIB fell 0.6 percent and Italian government bond prices rose as the new government met to discuss its spending plans. Some investors appear concerned Italy will break eurozone budget rules on to satisfy election promises.

Japan's Nikkei 225 dropped 1 percent and South Korea's Kospi, which reopened after a national holiday, added 0.7 percent. Hong Kong's Hang Seng index slipped 0.4 percent.

 

[bigdog]

https://www.usnews.com/news/busines...ian-shares-rebound-on-strong-us-economic-data

Stocks Close Out Best Quarter in 5 Years on a Quiet Note
US stocks finish mixed Friday as chipmakers and energy companies rise but banks and European stocks fall after Italy's government announces a big increase in spending.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stocks ended back where they started Friday as the stock market wrapped up its best quarter in almost five years. Electric car maker Tesla plunged after federal regulators moved to oust CEO Elon Musk following his tweet last month saying that he was close to a deal to take Tesla private.

Health care companies did better than any part of the market during the third quarter and they continued to rise Friday, while technology companies rose as chipmakers also traded higher. Facebook said it discovered a security breach in which 50 million accounts were accessed by unknown attackers, and its stock fell again, ending its worst quarterly run in six years.

Global banks fell and European stocks skidded after Italy's new government announced a big increase in spending. Italy's main stock index fell almost 4 percent as investors worried that the government's plan will lead to a clash with European Union leaders who want Italy to reduce its debt level.

Through the third quarter, pain in other markets led to gains for U.S. stocks, and that was true again Friday. The S&P 500 rose 7.2 percent, its biggest increase since the end of 2013.

One reason is that investors are worried about other regions, especially emerging markets. The currencies of Turkey and Argentina both dropped during the quarter and investors worried that their currency and economic problems would harm the rest of the world.

"Investors do pivot to the U.S. when they have concerns about other regions," said Marina Severinovsky, an investment strategist at Schroders. But emerging markets stocks have bounced back somewhat over the last two weeks, and Severinovsky said they might do better than U.S. stocks in the fourth quarter.

"The pessimism around those regions is probably too much," she said.

The S&P 500 index inched down 0.02 points to 2,913.98. The Dow Jones Industrial Average rose 18.38 points, or 0.1 percent, to 26,458.31. The Nasdaq composite added 4.38 points, or less than 0.1 percent, to 8,046.35. The Russell 2000 index of smaller-company stocks gained 6.04 points, or 0.4 percent, to 1,696.57.

The spending plans announced by Italy's new government would expand its budget deficit. European Union leaders want Italy to bring down its debt level, which is the highest of any EU country after Greece.

Italy's FTSE MIB sank 3.7 percent while the German DAX gave up 1.5 percent. France's CAC 40 lost 0.8 percent and the FTSE 100 index in Britain shed 0.5 percent.

Yields on Italian government bonds rose sharply, a sign of lower investor confidence in the government's financial strength. The yield on Italy's 10-year bond jumped to 3.14 percent from 2.89 percent, a huge move.

Italian bank UniCredit sank 6.7 percent to $12.96. Among European banks, Barclays dipped 3.6 percent to $8.95. In the U.S., Goldman Sachs shed 1.5 percent to $224.24.

Tesla suffered its worst loss in almost five years. It dropped 13.9 percent to $264.77 after the Securities and Exchange said Musk committed securities fraud with his statement about taking Tesla private. The SEC launched an investigation after Musk tweeted that he had secured the funding for his transaction, but it soon became clear that the company wasn't close going private.

Musk called the action unjustified. His tweet said the company would go private at $420 per share, and the stock jumped to almost $380 that day. It's fallen 31 percent since then.

Facebook fell 2.5 percent to $164.52 after it disclosed the breach. That capped a brutal three months for social media companies. Facebook plunged 19 percent on July 26 after it said user growth had slowed, a drop that slashed Facebook's value by $119 billion, its biggest one-day loss as a public company.

Facebook fell 15 percent in the third quarter and Twitter dropped 35 percent, more than any other S&P 500 stock. Twitter was on a huge run until July 27, when it, too, it reported weak user growth. Investors also worried about the possibility of greater regulation of both companies following hearings in Congress.

"In the U.S. and Europe these companies have largely been allowed, as they've grown to the size and scale and influence that they have, to self-regulate," said Severinovsky, of Schroders. "I think that era is over."

Japan's Nikkei 225 jumped 1.4 percent after the country agreed to open negotiations on a trade agreement with the United States. The move won Japan relief from the immediate threat of punitive tariffs on its auto exports to the U.S. Hong Kong's Hang Seng index added 0.3 percent and South Korea's slipped 0.5 percent.

Energy companies rose as benchmark U.S. crude rose 1.6 percent to $73.25 per barrel in New York. Brent crude, used to price international oils, added 1.2 percent to $82.72 per barrel in London.

Gold rose 0.7 percent to $1,196.20 an ounce. Silver jumped 3 percent to $14.71 an ounce. Copper gained 0.8 percent to $2.81 a pound.

Wholesale gasoline added 0.9 percent to $2.10 a gallon. Heating oil rose 1.2 percent to $2.35 a gallon. Natural gas fell 1.6 percent to $3.01 per 1,000 cubic feet.

Bond prices were little changed. The yield on the 10-year Treasury note stayed at 3.05 percent.

The dollar rose to 113.58 yen from 113.42 yen. The euro fell to $1.1610 from $1.1658.

2924

 

[bigdog]

Markets in Hong Kong and the Chinese mainland were closed for National Day holidays.

https://www.usnews.com/news/busines...es-mixed-amid-lingering-trade-tension-worries

Early Rally Over Canada Deal Fades, Leaving US Stocks Mixed
Major stock indexes are ending mixed, having given up an early gain after the U.S. and Canada agreed to a new trade deal.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Stocks barreled higher in the early going Monday after the U.S. and Canada agreed to a new trade deal, but the rally ran out of momentum later in the day, leaving major indexes mixed.

Oil prices neared four-year highs and smaller companies suffered their worst losses in three months.

Large industrial and basic materials stocks made big gains, and energy companies rose as crude oil and natural gas reached their highest prices in years. Car companies also rose as investors anticipated that tariffs on imported cars are less likely now.

Many investors saw the new trade deal, the United States-Mexico-Canada Agreement, as an update of the 1994 North American Free Trade Agreement, not a major overhaul.

"Most investors thought the NAFTA deal would end somewhat peacefully," said Mark Hackett, chief of investment research at Nationwide Investment Management. "It's an incremental positive to get it out of the news but it's not transformational."

General Electric soared after it ousted Chairman and CEO John Flannery, while Tesla reversed a big loss Friday and made its largest gain in five years after founder Elon Musk settled a lawsuit brought by securities regulators, allowing him to remain CEO.

The S&P 500 index rose as much as 23 points during the day, then finished with a gain of 10.61 points, or 0.4 percent, at 2,924.59. The Dow Jones Industrial Average jumped 192.90 points, or 0.7 percent, to 26,651.21. The Nasdaq composite lost 9.05 points, or 0.1 percent, at 8,037.30.

Mexico's main stock index rose 0.8 percent and while Canada's added 0.2 percent. Mexico and the U.S. announced a trade agreement in late August and despite a few harsh remarks by President Donald Trump and Prime Minister Justin Trudeau, experts expected Canada would join the pact, as Canada is the U.S.' second-largest trade partner and a deal without Canada would have affected the supply lines of companies in numerous industries.

The Russell 2000 index of smaller and more U.S.-focused companies sank 23.58 points, or 1.4 percent, to 1,672.99. That was its worst loss since late June. The index has lost 3.9 percent since the end of August while multinational companies, like those on the S&P 500, have moved higher.

The agreement gives U.S. dairy farmers more access to the Canadian market, and keeps a NAFTA dispute-resolution process that the U.S. wanted to eliminate. It offers Canada protection if the U.S. goes ahead with plans to impose tariffs on cars, trucks and auto parts imported into the United States. General Motors climbed 1.6 percent to $34.20.

Among industrial companies, Boeing rose 2.8 percent to $382.29 and Honeywell gained 1.1 percent to $166.44. General Electric jumped 7.1 percent after it said Flannery will be replaced by H. Lawrence Culp, the former CEO of industrial and medical device company Danaher.

Flannery took over GE from Jeffrey Immelt in 2017 and tried to return the company to its industrial roots by focusing on aviation, health care and power. Some investors wanted him to go further and felt GE should split up.

His tenure was marked by big missteps. In June GE said it would pay $15 billion to make up for miscalculations by an insurance division, and in September the company disclosed flaws in its marquee gas turbine. On Monday GE said it is taking a $23 billion charge related to its power business and will miss its annual profit target. Its stock has fallen by half over the last year.

Tesla soared 17.3 percent to $310.70 after Musk agreed to give up the chairman's role for at least three years, while Tesla will appoint two new, independent directors to its board. The stock plunged 14 percent Friday after the Securities and Exchange Commission said Musk misled investors in August with a tweet saying he had secured the funding to take Tesla private.

In a court filing, the SEC said it wanted to bar Musk from serving as an officer or director of a publicly traded company and called his actions securities fraud. Musk and Tesla are each paying $20 million to resolve the lawsuit.

Benchmark U.S. crude climbed 2.8 percent to $75.30 a barrel in New York, its highest closing price since November 2014. Brent crude, used to price international oils, added 2.7 percent to $84.98 per barrel in London. It's also trading at four-year highs.

Wholesale gasoline rose 2 percent to $2.13 a gallon. Heating oil added 2.5 percent to $2.41 a gallon. Natural gas jumped 2.9 percent to a three-year high of $3.09 per 1,000 cubic feet.

Hackett, of Nationwide, said the recent rise in oil prices is a bigger problem for small companies than it is for larger multinationals.

Bond prices fell. The yield on the 10-year Treasury note rose to 3.09 percent from 3.05 percent.

Gold fell 0.4 percent to $1,191.70 an ounce. Silver lost 1.4 percent to $14.51 an ounce. Copper slid 0.6 percent to $2.79 a pound.

The dollar rose to 113.99 yen from 113.58 yen. The euro dipped to $1.1575 from $1.1610. The Canadian dollar fell to 1.2787 from 1.2922.

Germany's DAX added 0.8 percent while the CAC 40 in France advanced 0.2 percent. Britain's FTSE 100 fell 0.2 percent. After a sharp drop Friday, Italy's FTSE MIB lost another 0.5 percent as investors worried about the new government's plan to increase spending. The index has fallen 16 percent in the last five months.

Japan's benchmark Nikkei 225 gained 0.5 percent and South Korea's Kospi gave up 0.2 percent. Markets in Hong Kong and the Chinese mainland were closed for National Day holidays.

 

[bigdog]

https://finance.yahoo.com/m/67a9714a-e9f6-3e8c-af62-a22984086205/ss_retailers-sink-as-amazon.html

Retailers sink as Amazon raises hourly pay; Dow at a record

Associated Press October 3, 2018

NEW YORK (AP) — Retailers sank Tuesday after Amazon said it will raise hourly wages for U.S. employees, and smaller companies continued to stumble. Several big industrial companies rose, pushing the Dow Jones Industrial Average to a record high.

Amazon, one of the largest private employers in the U.S., said it will raise the minimum wage for its U.S. workers to $15 an hour in November. Amazon also said it will advocate for an increase in the federal minimum wage, which has been $7.25 an hour since July 2009. Its stock fell, but other retailers suffered bigger losses.

"The question is, do other companies have to follow suit?" said Quincy Krosby, chief market strategist at Prudential Financial. "This is the argument that what's good for Main Street is not necessarily good for Wall Street."

The bad news for retailers didn't end there. Stitch Fix, an online clothing company, plunged 35.2 percent $28.94. Stitch Fix had almost tripled since its IPO in November.

Pepsi fell after it said the strong dollar will take a bigger chunk out of its annual profit. General Motors and Ford both fell after they reported their sales.

The S&P 500 index fell 1.16 points to 2,923.43. The Dow added 122.73 points, or 0.5 percent, to 26,773.94. The biggest gains came from industrial companies Boeing, 3M and Caterpillar.

The Nasdaq composite lost 37.75 points, or 0.5 percent, to 7,999.55. Three stocks fell for every two that rose on the New York Stock Exchange.

Amazon lost 1.6 percent to $1,971.31 while Nike lost 2 percent to $82.77 and Gap sank 4.9 percent to $27.31. Smaller consumer-focused companies fared even worse. Crocs dropped 6.8 percent to $19.59 and Guess skidded 6.7 percent to $20.69.

The Russell 2000 index of smaller-company stocks fell 16.95 points, or 1 percent, to 1,656.04, its lowest close since July 30. Earlier this year investors bought up smaller companies as tensions with trading partners flared up. Smaller companies tend to be less exposed to trade conflicts since they do more business in the U.S. than larger companies.

Investors aren't as worried about trade tensions recently, so they are shifting money out of smaller companies and into large multinationals. In the last three months the S&P 500 has climbed 7.2 percent and the Russell is essentially flat.

Krosby said rising oil and gas prices are also a problem for retailers because they could leave consumers feeling like they have less money to spend over the holiday shopping season.

Automakers fell following their sales updates. GM dipped 2.6 percent to $33.30 and Ford fell 1.3 percent to $9.20, but Toyota added 0.7 percent to $125.71. Auto parts retailers AutoZone fell 1 percent to $762.82.

Automakers had risen Monday as the trade deal with Canada appeared to reduce the chances that the industry will be harmed by tariffs on imported cars. The pact offers protection to Canada if the U.S. does impose tariffs.

Pepsi fell 1.8 percent to $108.72 after it said the stronger dollar will have a bigger effect on its earnings this year. The company is now forecasting a profit of about $5.65 per share in 2018, down from an earlier estimate of $5.70 a share.

Airlines fell after Delta's projections for the third quarter disappointed Wall Street, and the airline said it lost $30 million due to Hurricane Florence. Delta gave up 3.4 percent to $54.69 while American fell 2.8 percent to $38.50.

Italy's leaders refused to budge from new spending plans that have been worried investors, pushing the eurozone's third-largest economy on a collision course with its EU partners. Deputy Prime Minister Luigi Di Maio said Tuesday that the government won't change its plan to increase its deficit to 2.4 percent of GDP.

Italy's FTSE MIB fell 0.2 percent for its fifth loss in a row, and Italian government bond prices continued to fall, a sign investors are concerned about the country's debts. Germany's DAX lost 0.4 percent and the CAC 40 in France dropped 0.7 percent. Britain's FTSE 100 fell 0.3 percent.

Separately, the credit ratings agency Moody's warned that Europe remains highly vulnerable to another economic downturn despite all its fire-fighting efforts over the past few years.

Oil prices declined slightly after reaching four-year highs on Monday. Benchmark U.S. crude fell 0.1 percent to $75.23 in New York. Brent crude, used to price international oils, slipped 0.2 percent to $84.80 a barrel in London.

Wholesale gasoline was little changed at $2.13 a gallon and heating oil remained at $2.41 a gallon. Natural gas rose 2.3 percent to $3.17 per 1,000 cubic feet.

Gold jumped 1.3 percent to $1,207 an ounce and silver rose 1.3 percent to $14.69 an ounce. Copper gained 0.7 percent to $2.81 a pound.

The dollar fell to 113.69 yen from 113.99 yen. The euro fell to $1.1545 from $1.1575.

Bond prices edged higher. The yield on the 10-year Treasury note fell to 3.06 percent from 3.08 percent.

Hong Kong's Hang Seng tumbled 2.4 percent after it reopened following a national holiday. South Korea's Kospi lost 1.3 percent and the benchmark Nikkei 225 in Tokyo added 0.1 percent.

 

[bigdog]

The Dow Jones Industrial Average gained 54.45 points, or 0.2 percent, to 26,828.39, another all-time high.

https://finance.yahoo.com/m/c2f048e...28103de/ss_strong-economic-signs-lift-us.html

Strong economic signs lift US stocks; bond prices drop

MARLEY JAY

NEW YORK (AP) — Encouraging reports on hiring and growth in the service sector sent small companies and banks higher Wednesday and knocked bond prices into a tailspin. The yield on the benchmark 10-year Treasury note spiked to its highest level in more than seven years.

Both reports were stronger than analysts expected and suggest the economy is in good shape in spite of rising interest rates and oil prices, and the ongoing trade dispute between the U.S. and China.

"This is evidence of strong economic growth and the likelihood earnings will continue to be good," said Ameriprise Chief Market Strategist David Joy. While some experts think the economy will slow somewhat in the third and fourth quarter, Joy's view is that "we're not going to get much of a slowdown."

The S&P 500 index added 2.08 points, or 0.1 percent, to 2,925.51. The Dow Jones Industrial Average gained 54.45 points, or 0.2 percent, to 26,828.39, another all-time high. It was up as much as 177 points earlier. The Nasdaq composite picked up 25.54 points, or 0.3 percent, to 8,025.09.

The Russell 2000 index of small-company stocks climbed 15.25 points, or 0.9 percent, to 1,671.29. Those companies, which tend to be more focused on the U.S. market than large multinationals, stand to benefit more from strong economic growth at home. The Russell has fallen since the end of August as investors have grown less worried about trade tensions between the U.S. and other countries.

The survey on private company hiring by ADP raised expectations for the government's broader jobs report due out on Friday, which tends to have an even bigger effect on markets. The Institute for Supply Management, the trade group, said its index measuring the service sector reached the highest level in a decade.

The solid reports helped companies that do better when businesses and consumers spend more money, like technology and industrial stocks. Apple rose 1.2 percent to $232.07 and Caterpillar rose 2.2 percent to $158.22.

Investors were willing to bet on continued economic growth, and that meant bond prices dropped sharply, sending yields soaring. The yield on the 10-year Treasury note rose to 3.18 percent, its highest since July 2011 and up from 3.05 percent a day earlier.

That helped banks, which are able to charge higher interest rates on long-term loans when bond yields rise. Comerica rose 2.6 percent to $92.09 and Bank of America added 1.4 percent to $30.

High-dividend stocks like utilities and household goods makers took sharp losses. Procter & Gamble fell 1.6 percent to $83.03 and Walmart lost 1.1 percent to $94.07. Investors often treat those stocks as alternatives to bonds, and they tend to fall when bond yields rise.

General Motors rose 2.1 percent to $34 after Honda agreed to invest $2.75 billion in GM's autonomous vehicle business over the next 12 years. Honda lost 3.6 percent to $29.37. Japanese technology firm SoftBank said in May that it would pay $2.25 billion for a 20 percent stake in the GM business, which is called Cruise. It's been trying to catch up to Google's autonomous car division, Waymo.

Century Aluminum tumbled after Norsk Hydro said it is shutting down its Alunorte plant in Brazil. Alunorte is the world's largest alumina refinery, and that could leave Century Aluminum without enough of a critical material used in making aluminum. Century Aluminum fell 11.6 percent to $10.52, and shares of Norsk Hydro lost 11.8 percent in Norway.

Rival aluminum company Alcoa, which produces its own alumina, rose 3.2 percent to $42.89.

Stocks in Europe rose after Italy's economy minister backed down on spending plans that would keep the country's deficit at an elevated level for three years. That relieved investors who were worried about Italy's debts and the possibility of tensions between the country and the European Union.

The FTSE MIB in Italy gained 0.8 percent after dropping 5 percent over the previous five days. Italian government bond prices climbed and the yield on the 10-year bond fell sharply, to 3.30 percent from 3.44 percent. That followed sharp rises in the yield over the past three days.

The CAC 40 in France rose 0.4 percent while the FTSE 100 in Britain rose 0.5 percent. German markets were closed for a holiday.

Benchmark U.S. crude jumped 1.6 percent to settle at $76.41 a barrel in New York. U.S. crude has hit four-year highs this week. Brent crude, used to price international oils, rose 1.8 percent at $86.29 a barrel in London.

Wholesale gasoline edged up 0.5 percent to $2.14 a gallon. Heating oil rose 1.2 percent to $2.44 a gallon. Natural gas climbed 2 percent to $3.23 per 1,000 cubic feet.

Gold fell 0.3 percent to $1,202.90 an ounce. Silver lost 0.2 percent to $14.67 an ounce. Copper rose 1 percent to $2.83 a pound.

The dollar rose to 114.34 yen from 113.69 yen. The euro fell to $1.1517 from $1.1545.

Asian stocks fell as traders worried about by rising oil prices and weak economic data in Japan. Japan's benchmark Nikkei 225 fell 0.7 percent and Hong Kong's Hang Seng dropped 0.1 percent.

 

[bigdog]

https://www.usnews.com/news/busines...erest-rates-send-stocks-skidding-tech-plunges

Rising interest rates send stocks skidding; tech plunges
Global stock indexes fall as interest rates rise, and the benchmark 10-year US Treasury note continues to climb after reaching its highest level in seven years.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Global stocks fell Thursday as interest rates in the U.S. continued to rise. Technology and internet companies skidded and the Nasdaq composite took its biggest loss in three months.

Strong reports on job gains and the service industry have sent bond prices tumbling over the last two days as traders bet the U.S. economy will keep growing at about its current clip. Government bonds are stable investments that look most appealing when economic growth is shaky, so investors sold those bonds in the U.S. and Europe.

But the big drop in bond prices is sending interest rates sharply higher, a development that worries investors because it can eventually slow economic growth by making borrowing more expensive for consumers and businesses. It also makes bonds a more intriguing investment compared to stocks.

Sameer Samana, strategist for the Wells Fargo Investment Institute, said that after months of positive economic data, traders in the bond market are selling because they’ve decided yields are too low for them to get a good return on their investments.

“Economic data for months has been strengthening,” he said. “The bond market has completely ignored it until recently.”

The S&P 500 index skidded 23.90 points, or 0.8 percent, to 2,901.61. The Dow Jones Industrial Average lost 200.91 points, or 0.7 percent, to 26,627.48. The Nasdaq composite fell 145.57 points, or 1.8 percent, to 7,879.51. The Russell 2000 index of smaller-company stocks gave up 24.38 points, or 1.5 percent, to 1,646.91.

Bond prices fell again. The yield on the 10-year Treasury note climbed to 3.18 percent from 3.16 percent. Yields began climbing Wednesday following encouraging signs on hiring by private companies and growth for services companies.

That data suggests the economy should keep growing at a solid pace. That translates to bigger profits for U.S. companies and continued increases in interest rates by the Federal Reserve, which raises rates to keep inflation in check. But after an early rally on Wednesday, investors have been considering the negative aspects of that increase in yields.

The health of the economy and the pace of inflation will both be in focus Friday morning after the Labor Department makes its monthly jobs report. That will include hiring by governments and private companies in September and will also include data on wage increases. Stocks plunged in February after the department said wages increased sharply the month before.

Alphabet, Google’s parent company, fell 2.8 percent to $1,177.07. That was its worst loss in five months. Apple slid 1.8 percent to $227.99 and Microsoft lost 2.1 percent to $112.79. Facebook shed 2.2 percent to $158.85 and Amazon declined 2.2 percent to $1,909.42.

Still, Samana said investors aren’t shying away from the stock market because many investors are still buying shares of companies that have been left out of the market’s recent gains. Bank stocks have made tiny gains this year, but they climbed Thursday because higher interest rates mean they make bigger profits on mortgages and other types of loans. Bank of America added 1.2 percent to $30.37 and Wells Fargo rose 1.5 percent to $53.46.

Industrial and energy companies have both lagged the broader S&P 500 in 2018. Those stocks fell Thursday, but they did better than the rest of the market.

The same pattern played out in Europe as stocks and bond prices fell. France’s CAC 40 sank 1.5 percent and Britain’s FTSE 100 tumbled 1.2 percent. The DAX in Germany lost 0.4 percent as trading resumed after a national holiday.

Hong Kong’s Hang Seng index sank 1.7 percent and Japan’s Nikkei 225 index lost 0.6 percent while the Kospi in South Korea sank 1.5 percent.

Shares sank in India as the rupee continued to weaken and investors worried about the country’s trade deficit thanks to surging costs for oil imports. The Sensex index fell 2.2 percent.

Deals hopes also boosted shares of some companies. Barnes & Noble climbed 21.8 percent to $6.65 after the bookseller said it will review offers from potential buyers, including one from founder and chairman Leonard Riggio, the company’s biggest shareholder. Even after Thursday’s gain, Barnes & Noble stock is slightly lower in 2018 and has lost almost two-thirds of its value since July 2015.

Business software companies Hortonworks and Cloudera said they agreed to combine in an all-stock deal. Cloudera shareholders will own most of the new company, which the two sides said will be worth $5.2 billion. Cloudera rose 11.5 percent to $19.05 and Hortonworks added 11.9 percent to $224.48.

Benchmark U.S. crude slid 2.7 percent to $74.33 per barrel in New York. U.S. crude hit four-year highs this week. Brent crude, used to price international oils, lost 2 percent to $84.58 per barrel in London.

Wholesale gasoline lost 1.7 percent to $2.10 a gallon. Heating oil slipped 1.5 percent to $2.40 a gallon. Natural gas fell 2 percent to $3.17 per 1,000 cubic feet.

Gold fell 0.1 percent to $1,201.60 an ounce. Silver lost 0.5 percent to $14.59 an ounce. Copper dropped 2 percent to $2.78 a pound.

The dollar fell to 113.86 yen from 114.34. The euro slipped to $1.1515 from $1.1517.

 

[bigdog]

https://www.usnews.com/news/busines...erest-rates-send-stocks-skidding-tech-plunges

Stocks Sink Again as Job Gains Send Bond Yields Higher
US stocks and bonds are falling further as investors expect interest rates to keep rising after the Labor Department said job growth remained solid in recent months.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stock and bond prices fell again Friday after the Labor Department said the economy continues to add jobs at a strong pace, and investors worried about a three-day surge in yields.

The Department of Labor said employers added significantly more jobs in July and August than it previously thought, which made up for a slightly disappointing gain in September. That was another sign economic growth is likely to continue.

While that's usually good news for stocks, the market stumbled this week as investors sold government bonds at a rapid pace. That pushed yields to their highest levels in more than seven years, a sign that investors are unsure how high and fast interest rates will rise.

Kate Nixon, the chief investment strategist for Northern Trust Wealth Management, said the decline in stock and bond prices started with comments by Federal Reserve Chairman Jerome Powell on Wednesday.

In a moderated discussion, Powell expressed confidence in the economy and said rising interest rates are a "long way" from holding back growth. Nixon said that means the Fed is intent on raising rates further, and investors aren't sure when it intends to stop.

"The Fed is clearly no longer in the business of being accommodative and now the burden of proof is on the data to prove them wrong," she said. Until last month, the Fed had described its policies as "accommodative," or encouraging faster growth, since the Great Recession.

The S&P 500 index lost 16.04 points, or 0.6 percent, to 2,885.57. The Dow Jones Industrial Average dipped 180.43 points, or 0.7 percent, to 26,447.05.

Technology and internet companies and smaller, more U.S.-focused companies continued to suffer steep losses. The Nasdaq composite skidded 91.06 points, or 1.2 percent, to 7,788.45. The Russell 2000 index lost 14.80 points, or 0.9 percent, to 1,632.11.

The Nasdaq dropped 3.2 percent this week and the Russell tumbled 3.8 percent. That was both indexes worst weekly loss in more than six months. The Russell index finished at its lowest level since late May.

The yield on the 10-year Treasury note jumped to 3.23 percent, its highest since May 2011, from 3.19 percent.

"It's so unusual to see these kinds of dramatic moves in the U.S. Treasury market without there being some kind of Big Bang event," said Nixon, of Northern Trust. "We haven't seen anything like it since the (2016 presidential) election."

While technology companies and retailers have been the biggest gainers on the S&P this year, they took steep losses this week. Banks and industrial and energy companies, which have struggled for most of 2018, changed place and finished with strong gains.

Among technology companies, chipmaker Nvidia lost 3.4 percent to $269.86 and Apple slipped 1.6 percent to $224.29. Among internet and communications companies, Netflix slumped 3.4 percent to $351.35. Retailers also declined and Amazon gave up 1 percent to $1,889.65.

Several major banks will report their third-quarter results late next week as the next round of company earnings begins.

Tesla stock fell 7.1 percent to $261.95 to end a particularly wild week for the electric car maker. Thursday evening, CEO Elon Musk taunted the Securities and Exchange Commission on Twitter just days after he agreed to settle an SEC lawsuit triggered by a tweet he sent in August.

As part of that settlement, Musk agreed to step down as chairman and submit to oversight when he's communicating company news. His criticisms of the SEC don't appear to be company news, but they may have worried investors who hoped his feed would be a little more boring from now on.

According to media reports, financier David Einhorn also criticized Tesla, comparing it to Lehman Brothers, which went bankrupt during the financial crisis. Tesla did not immediately respond to a request for comment.

Musk and Tesla are also paying $20 million each to end the lawsuit over his false tweet that he had secured funding to take Tesla private.

Wholesale club operator Costco gave up 5.6 percent to $218.82 after it said it discovered technology problems related to its financial reporting processes. Costco said it hasn't found any mistakes in its earnings reports so far.

European stocks fell for the second day in a row. Germany's DAX lost 1.1 percent and the CAC 40 in France dropped 1 percent. Britain's FTSE 100 fell 1.3 percent. Bond prices in all three countries fell again sending yields higher.

Japan's benchmark Nikkei 225 fell 0.8 percent and the Kospi in South Korea dropped 0.3 percent. Hong Kong's Hang Seng fell 0.2 percent.

Benchmark U.S. crude was little changed at $74.34 a barrel in New York and Brent crude, the standard for international oil futures, fell 0.5 percent to $84.16 a barrel in London.

Wholesale gasoline slipped 0.7 percent to $2.09 a gallon. Heating oil dipped 0.3 percent to $2.39 a gallon. Natural gas fell 0.7 percent to $3.14 per 1,000 cubic feet.

Gold rose 0.3 percent to $1,205.60 an ounce. Silver added 0.4 percent to $14.65 an ounce. Copper fell 0.5 percent to $2.76 a pound.

The dollar slipped to 113.73 yen from 113.86 yen. The euro rose to $1.1525 from $1.1515.

3323

 

[bigdog]

Almost sea of red

https://www.usnews.com/news/busines...decline-after-china-injects-cash-into-economy

Stock Indexes End Mixed, but Tech Companies Slide Further
U.S. stocks finish mixed following sharp losses early in the day, but technology companies continue to fall.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stock indexes found their footing after a sharp early loss Monday and finished mixed. Technology companies sank for the third day in a row.

Stocks slumped in morning trading following big declines late last week. Some of the largest losses went to technology companies, including payment and credit card companies. Indexes in Europe also dropped as Italy vowed to ramp up spending that will increase its deficit.

A sharp increase in bond yields last week had startled investors and prompted them to shift money out of stocks. Bond markets in the U.S. were closed for the Columbus Day holiday and stock trading was relatively light.

Banks, which often rise along with interest rates, continued their advance. High-dividend companies, which tend to fall when yields go up, recovered some of their losses from last week.

Kristina Hooper, chief global market strategist for Invesco, said technology companies have dropped because investors are concerned that they are vulnerable as the Trump administration wraps up trade negotiations with Mexico, Canada and Korea and zeroes in on China.

"The U.S. has made very significant concessions (to those countries), and I expect them to do that with Japan as well," she said. "The ultimate goal is to bring China to its knees."

The S&P 500 index dipped 1.14 points to 2,884.43. The Dow Jones Industrial Average reversed an early loss of 223 points and rose 39.73 points, or 0.2 percent, to 26,486.78.

The Nasdaq composite sank 52.50 points, or 0.7 percent, to 7,735.95. The Russell 2000 index of smaller-company stocks slipped 2.60 points, or 0.2 percent, to 1,629.51. The Nasdaq and Russell are each coming off their worst week since late March.

Among payment technology companies, PayPal slid 3.2 percent to $80.55 and Mastercard fell 2.3 percent to $208.26. Other tech companies also struggled, as Microsoft lost 1.1 percent to $110.85.

Alphabet, Google's parent company, fell 1 percent to $1,155.92 after it said the profiles of as many as 500,000 Google Plus accounts were exposed by a bug. The company said it will end Google Plus for consumers next year.

Hooper, of Invesco, said technology companies have been returning big profits this year, so investors have been slow to recognize the harm that could come from the trade spat.

"There's the potential for China to place an embargo on rare earth metals, which would be very disruptive to some parts of the tech industry," she said. "Tech is not going to be unscathed in a trade war."

Overseas, Italy's deputy premier vowed to press ahead with a plan to increase spending and the country's deficit even after the European Commission expressed "serious concern" about the notion.

Italy's FTSE MIB dropped 2.4 percent and Italian bond prices dropped, sending yields higher. Germany's DAX fell 1.4 percent and the CAC 40 in France sank 1.1 percent. In Britain, the FTSE 100 fell 1.2 percent.

The euro sank to $1.1488 from $1.1525.

China's government injected money into its cooling economy by reducing the level of reserves banks are required to hold, and its central bank told Chinese banks to lend more to entrepreneurs. Chinese leaders are trying to shore up economic growth that began to cool after Beijing tightened lending controls last year to rein in a debt boom.

Hong Kong's Hang Seng retreated 1.4 percent and the Kospi in South Korea fell 0.6 percent. Japanese markets were closed for a holiday.

Brazil's main stock index staged its biggest rally in two and a half years, jumping 4.6 percent for its highest close since May after far-right candidate Jair Bolsonaro led the first round of presidential voting by an unexpectedly wide margin. He's now the favorite in the final election later this month.

Bolsonaro has repeatedly said he doesn't understand the economy and has also spoken approvingly of Brazil's 1964-1985 dictatorship. But business leaders and financial markets approved of his choice of an esteemed banker as head of his economic team, and they are opposed to the left-leaning policies of the Workers' Party.

With bond markets in the U.S. closed, the yield on the 10-year Treasury note, an important benchmark for mortgages and other types of long-term loans, stayed at 3.22 percent. That's its highest in more than seven years and it's aided bank stocks.

That continued Monday as BB&T gained 1.5 percent to $9.74 and M&T Banks rose 1.1 percent to $170.09.

High-dividend stocks rose Monday. Those stocks are often treated as an alternative to bonds because of their large payments to shareholders, which are similar to the yields from bonds.

Real estate investment trust Crown Castle International gained 1.4 percent to $110.27 and Coca-Cola climbed 1.3 percent to $46.48.

Benchmark U.S. crude slid 0.1 percent to $74.29 a barrel in New York and Brent crude, used to price international oils, dropped 0.3 percent to $83.91 a barrel in London.

Wholesale gasoline rose 0.4 percent to $2.09 a gallon. Heating oil inched up 0.1 percent to $2.39 a gallon. Natural gas jumped 3.9 percent to $3.27 per 1,000 cubic feet.

Gold lost 1.4 percent to $1,188.60 an ounce and silver slipped 2.2 percent to $14.33 an ounce. Copper rose 0.1 percent to $2.77 a pound.

The dollar fell to 112.98 yen from 113.73 yen late Friday.

 

[bigdog]

https://www.usnews.com/news/busines...ks-fall-after-imf-downgrades-economic-outlook

US Stock Indexes Mixed as Interest Rates Take a Pause
U.S. stock indexes ended Tuesday nearly where they began, as interest rates let off the accelerator following their sharp rise last week.

By STAN CHOE, AP Business Writer

NEW YORK (AP) — U.S. stock indexes ended Tuesday nearly where they began, as interest rates let off the accelerator following their sharp rise last week. But the modest moves for indexes masked some roiling underneath.

Raw-material producers plunged on worries that inflation and weaker demand are eating into their profits. On the opposite end were technology stocks and other sectors, which recovered some of the sharp losses caused by last week's rapid rise in interest rates.

Altogether, the crosscurrents left the S&P 500 down 4.09 points, or 0.1 percent, at 2,880.34. It had waffled between small gains and losses for most of the day, and roughly three stocks rose in the index for every two that fell.

The Dow Jones industrial average fell 56.21, or 0.2 percent, to 26,430.57, and the Nasdaq composite added 2.07, or less than 0.1 percent, to 7,738.02.

At the center of the movements were interest rates, which sway how quickly the economy grows, how expensive it is for companies and households to borrow and how high a price investors are willing to pay for stocks. The yield on the 10-year Treasury dipped to 3.20 percent from 3.22 late Friday in the first of trading after bond markets were closed for a holiday on Monday.

The pause came after bond yields surged last week following several encouraging reports on the economy. The 10-year Treasury yield was just 3.05 percent last Tuesday, and the speed of the recent rise has been more concerning to investors than the level. If rates go high enough, they can hurt profits for companies and drive investors away from stocks and into bonds.

Tuesday's ease in rates helped technology stocks, which have been leading the market, both on the way up for most of the past year and on the way down over the last week. Technology companies are producing some of the biggest profit growth in the market, but their stocks are also trading at relatively high prices relative to those earnings.

Tech stocks in the S&P 500 are down 3 percent so far this month, versus a 1.2 percent loss for the overall index. But the group rose 0.4 percent Tuesday as interest rates dropped.

Energy stocks did even better, benefiting from another rise in the price of oil. Energy stocks in the S&P 500 climbed 1 percent, led by a 3.3 percent rise for Pioneer Natural Resources and a 2.7 percent climb for Apache.

"We like energy right now, and we think prices aren't likely to come down anytime soon," said Barry James, president and portfolio manager of James Advantage Funds. "The explorers have been left behind a little bit by the refiners, and now's their time to catch up."

On the losing end were raw-material producers, which tumbled 3.4 percent for the sharpest loss among the 11 sectors that make up the S&P 500.

PPG, which sells paints and coatings, sank 10.1 percent to $98.56 for the biggest loss in the S&P 500 after it warned that higher costs for oil and other materials will weigh on its third-quarter results. It also said that demand is weakening in China, as well as in the United States and Europe for automotive refinish products.

Companies across the economy are scheduled to report their earnings results for the summer in the coming weeks, and expectations along Wall Street are for another strong quarter of growth. Low taxes and a strong U.S. economy are helping profits, but investors also want to hear what companies say about their costs and how the global trade war is affecting their business.

The International Monetary Fund downgraded its forecast for global economic growth late Monday, citing higher interest rates and ongoing trade battles. The IMF said the global economy will grow 3.7 percent this year, the same as in 2017, but down from its earlier forecast of 3.9 percent. The IMF also cut its forecast for Chinese economic growth in 2019 to 6.2 percent, which would be its slowest since 1990.

In markets abroad, Japan's Nikkei 225 fell 1.3 percent, Hong Kong's Hang Seng fell 0.1 percent and the Shanghai Composite index rose 0.2 percent. In Europe, the CAC 40 in France rose 0.3 percent, and the German DAX gained 0.3 percent. The FTSE 100 in London edged up 0.1 percent.

In the commodities markets, benchmark U.S. crude rose 0.9 percent to $74.94 a barrel. Brent crude, the international standard, rose 1.3 percent to $85 a barrel.

Gold rose 0.2 percent to settle at $1,191.50 per ounce, silver gained 0.5 percent to $14.40 per ounce and copper rose 1.4 percent to $2.81 per pound.

The dollar rose to 113.05 Japanese yen from 112.98 yen late Monday. The euro rose to $1.1496 from $1.1488, and the British pound rose to $1.3146 from $1.3090.

 

[bigdog]

Dow Industrials Sink 831 Points as Tech Companies Plunge

Dow Industrials Sink 831 Points as Tech Companies Plunge
Stocks take their worst loss in eight months as US indexes slide for the fifth day in a row, led by drops in big technology companies.

BY MARLEY JAY AND STAN CHOE, AP Business Writers

NEW YORK (AP) — U.S. stocks plunged to their worst loss in eight months on Wednesday as technology companies continued to drop. The Dow Jones Industrial Average fell 831 points.

The losses were widespread, and stocks that have been the biggest winners on the market the last few years, including technology companies and retailers, suffered steep declines. Apple and Amazon both had their worst day in two and a half years.

The Nasdaq composite, which has a high concentration of technology companies, had its biggest loss in more than two years.

Alec Young, managing director of global markets research at FTSE Russell, said investors fear that rising interest rates and growing expenses are going to erode company profits next year.

"The tax cuts juiced earnings this year and that's not sustainable," he said. "The market's starting to say that the glass may be half empty."

The S&P 500 index sank 94.66 points, or 3.3 percent, to 2,785.68. The benchmark index fell for the fifth straight day, which hadn't happened since just before the 2016 presidential election.

The Nasdaq composite tumbled 315.97 points, or 4.1 percent, to 7,422.05. It's fallen 7.5 percent in just five days.

The Dow Jones Industrial Average gave up 831.83 points, or 3.1 percent, to 25,598.74. The Russell 2000 index of smaller-company stocks shed 46.45 points, or 2.9 percent, to 1,575.41.

After a long stretch of relative calm, the stock market has suffered sharp losses over the last week as bond yields surged. Stocks had come close to big drops in the last few days, but each time they recovered some of their losses. That didn't happen Wednesday as stocks fell further late in the day.

Apple gave up 4.6 percent to $216.36 and Microsoft dropped 5.4 percent to $106.16. Amazon skidded 6.2 percent to $1,755.25. Industrial and internet companies also fell hard. Boeing lost 4.7 percent to $367.57 and Alphabet, Google's parent company, gave up 4.6 percent to $1,092.16.



Insurance companies dropped as Hurricane Michael continued to gather strength and came ashore in Florida bringing winds of up to 155 miles an hour. Berkshire Hathaway dipped 4.7 percent to $213.10 and reinsurer Everest Re slid 5.1 percent to $217.73.

Luxury retailers tumbled after LVMH, the parent of Louis Vuitton, said its sales growth in China slowed. Tiffany plunged 10.2 percent to $110.38 and Ralph Lauren fell 8.4 percent to $116.96.

The biggest driver for the market over the last week has been interest rates, which began spurting higher following several encouraging reports on the economy. Higher rates can slow economic growth, erode corporate profits and make investors less willing to pay high prices for stocks.

The 10-year Treasury yield remained at 3.20 percent, about where it was late Tuesday, after earlier touching 3.24 percent. It was at just 3.05 percent early last week and 2.82 percent in late August.

Technology and internet-based companies are known for their high profit margins, and many have reported explosive growth in recent years, with corresponding gains in their stock prices.

Gina Martin Adams, chief equity strategist for Bloomberg Intelligence, said the stocks have become more volatile in the last few months because investors have concerns about their future profitability.

"Amazon recently announced they were increasing wages, Facebook is spending a ton on security," she said. "Semiconductors have the most exposure to China out of segments in the S&P 500."

Sears Holdings nosedived after the Wall Street Journal reported that the struggling retailer hired an advisory firm to prepare a bankruptcy filing that could come within days. The stock fell 16.8 percent to 49 cents. It was more than $40 five years ago.

Sears has closed hundreds of stores and sold several famous brands or put them on the block as it sees more customers abandon its stores.

Benchmark U.S. crude oil fell 2.4 percent to $73.17 a barrel in New York. Brent crude, the international standard, lost 2.2 percent to $83.09 a barrel in London.

Wholesale gasoline shed 2.7 percent to $2.02 a gallon. Heating oil fell 1.2 percent to $2.39 a gallon. Natural gas rose 0.6 percent to $3.28 per 1,000 cubic feet.


Gold rose 0.2 percent to $1,193.40 an ounce. Silver dipped 0.5 percent to $14.33 an ounce. Copper fell 0.9 percent to $2.78 a pound.

Japan's Nikkei 225 added 0.2 percent, South Korea's Kospi dropped 1.1 percent and the Hang Seng in Hong Kong gained 0.1 percent.

The CAC 40 in France dropped 2.1 percent, Germany's DAX lost 2.2 percent and the FTSE 100 in London fell 1.3 percent.

Stocks from emerging markets were also hard hit. Investors see many of these countries as being vulnerable to higher U.S. interest rates, which can pull away investment dollars. Brazil's Bovespa lost 2.5 percent and the Merval in Argentina sank 2.2 percent.

The dollar fell to 112.59 Japanese yen from 113.05 yen late Tuesday. The euro rose to $1.1525 from $1.1496. The British pound rose to $1.3197 from $1.3146

 

[bigdog]

Stocks Plunge Again; Dow's Two-Day Loss Reaches 1,300 Points
U.S. stocks tumble for the second consecutive day as the market's recent downturn gets worse.

BY MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stocks sank more than 2 percent Thursday, the second day of steep declines around the globe driven by concerns about rising interest rates and trade tensions that could slow economic growth.

The Dow Jones Industrial Average fell 545 points after dropping 831 points Wednesday. The two-day loss of 5.3 percent is the biggest for Dow since February. The S&P 500 is also down more than 5 percent over the two days and after falling for the past six trading days is almost 7 percent below its Sept. 20 high.

The recent turbulence in financial markets is a contrast to what investors have grown accustomed to in a bull market that has lasted more than 10 years, the longest in history. A hallmark of the past decade has been ultra-low interest rates, which the Federal Reserve used to promote growth in the aftermath of the 2008 financial crisis.

The Fed has been gradually raising interest rates over the past two years, after not having increased them since the recession. Those higher rates have been the catalyst for recent selling, stoking concerns that slower growth would impinge on corporate profits.

The selling Thursday was widespread. Energy companies sank along with oil prices and CVS lead a rout in health care stocks. Technology companies and retailers, including longtime market favorites Apple, Alphabet and Amazon, extended their recent slide.

"There isn't much of a place to hide right now in the equity market," said Willie Delwiche, an investment strategist at Baird.

Seeking safety, investors bought gold and government bonds. That pushed bond prices up and their yields down, ending a surge in yields that had touched off the market's current decline. But investors found more things to worry about.

There are ongoing concerns about the unresolved trade dispute between the U.S. and China. Strong earnings reports in the coming weeks could soothe investor nerves, but negative comments from company executives about future profits could have the opposite effect. Recently a larger-than-normal number of companies have warned that their third-quarter results could be weaker than analysts expected.

The benchmark S&P 500 index rose in morning trading, but ultimately gave up 57.31 points, or 2.1 percent, to 2,728.37, its lowest close in three months. The index has declined 6.7 percent during its current losing streak. That's its steepest downturn since a 10-percent drop in early February.

The Dow Jones Industrial Average lost 545.91 points, or 2.1 percent, to 25,052.83 after falling as much as 698. The Nasdaq composite skidded 92.99 points, or 1.3 percent, to 7,329.06. The Russell 2000 index of smaller-company stocks fell 30.03 points, or 1.9 percent, to 1,545.38.

Thursday's losses in the U.S. followed steep declines overseas. Markets in France, Britain and Germany fell after stocks declined sharply in Hong Kong and Japan.

"People are trying to get a sense of 'where should my money actually be right now?'" said JJ Kinahan, chief market strategist for TD Ameritrade.

The S&P 500's current decline is the longest since a nine-day skid shortly before the 2016 presidential election. It has climbed 27.5 percent since Donald Trump was elected, and is still up 2.1 percent in 2018.

The market had been calm from late June through September as investors were satisfied with continued economic growth, strong company profits, and signs of progress in trade talks between the U.S. and several partners, although the U.S. remained at odds with China.

Delwiche, the Baird strategist, thinks the current slump isn't over yet.

"I don't see evidence right now that this is a one-off event," he said.

On Thursday, President Trump renewed his criticism of the Federal Reserve, blaming the recent downturn in the stock market on the Fed's rate policy.

"We have interest rates going up at a clip that's much faster than certainly a lot of people, including myself, would have anticipated. I think the Fed is out of control," the president said to reporters in the Oval Office.

Trump said he had no intention of firing Jerome Powell, who he appointed as Fed chairman in February.

Bond prices rose as the recent surge in yields attracted the attention of some investors. The yield on the 10-year Treasury note fell to 3.15 percent from 3.22 percent late Wednesday. That's still sharply higher than it was about a week ago, and earlier this week the yield on the 10-year note reached its highest level since mid-2011.

The drop in yields hurt banks, and JPMorgan Chase fell 3 percent to $1078.13 while Bank of America sank 3 percent to $28.36. JPMorgan Chase and several other banks will report their third-quarter results Friday morning

Technology and retail companies continued to stumble. Amazon dropped another 2 percent to $1,719.36 and Apple fell 0.9 percent to $214.45. Microsoft and Alphabet, Google's parent company, were little changed. Those stocks have made huge gains for years, but they're currently out of favor. Amazon and Alphabet, respectively the second- and fourth-most valuable U.S. companies, are in what's known as a "correction," a drop of more than 10 percent from a recent peak. Facebook, the sixth-largest company, has tumbled 29 percent since late July, surpassing the 20-percent threshold for a "bear market."

The Nasdaq composite has fallen 9.6 percent since it set a record high in late August and the Russell 2000 has fallen 11 percent.

U.S. crude dropped 3 percent while Brent crude, the international standard, dropped 3.4 percent. Wholesale gasoline, heating oil and natural gas also declined.

After months of declines, the price of gold jumped by the most in two years, rising 2.9 percent to $1,227.60 an ounce.

In other metals trading, silver rose 2 percent and copper added 0.8 percent.

The dollar fell to 111.94 yen from 112.59 yen, and the euro rose to $1.1594 from $1.1525.

 

[Skate]

View attachment 89704

Stocks Plunge Again; Dow's Two-Day Loss Reaches 1,300 Points
U.S. stocks tumble for the second consecutive day as the market's recent downturn gets worse.

BY MARLEY JAY, AP Markets Writer

NEW YORK (AP) — U.S. stocks sank more than 2 percent Thursday, the second day of steep declines around the globe driven by concerns about rising interest rates and trade tensions that could slow economic growth.

The Dow Jones Industrial Average fell 545 points after dropping 831 points Wednesday. The two-day loss of 5.3 percent is the biggest for Dow since February. The S&P 500 is also down more than 5 percent over the two days and after falling for the past six trading days is almost 7 percent below its Sept. 20 high.

The recent turbulence in financial markets is a contrast to what investors have grown accustomed to in a bull market that has lasted more than 10 years, the longest in history. A hallmark of the past decade has been ultra-low interest rates, which the Federal Reserve used to promote growth in the aftermath of the 2008 financial crisis.

The Fed has been gradually raising interest rates over the past two years, after not having increased them since the recession. Those higher rates have been the catalyst for recent selling, stoking concerns that slower growth would impinge on corporate profits.

The selling Thursday was widespread. Energy companies sank along with oil prices and CVS lead a rout in health care stocks. Technology companies and retailers, including longtime market favorites Apple, Alphabet and Amazon, extended their recent slide.

"There isn't much of a place to hide right now in the equity market," said Willie Delwiche, an investment strategist at Baird.

Seeking safety, investors bought gold and government bonds. That pushed bond prices up and their yields down, ending a surge in yields that had touched off the market's current decline. But investors found more things to worry about.

There are ongoing concerns about the unresolved trade dispute between the U.S. and China. Strong earnings reports in the coming weeks could soothe investor nerves, but negative comments from company executives about future profits could have the opposite effect. Recently a larger-than-normal number of companies have warned that their third-quarter results could be weaker than analysts expected.

The benchmark S&P 500 index rose in morning trading, but ultimately gave up 57.31 points, or 2.1 percent, to 2,728.37, its lowest close in three months. The index has declined 6.7 percent during its current losing streak. That's its steepest downturn since a 10-percent drop in early February.

The Dow Jones Industrial Average lost 545.91 points, or 2.1 percent, to 25,052.83 after falling as much as 698. The Nasdaq composite skidded 92.99 points, or 1.3 percent, to 7,329.06. The Russell 2000 index of smaller-company stocks fell 30.03 points, or 1.9 percent, to 1,545.38.

Thursday's losses in the U.S. followed steep declines overseas. Markets in France, Britain and Germany fell after stocks declined sharply in Hong Kong and Japan.

"People are trying to get a sense of 'where should my money actually be right now?'" said JJ Kinahan, chief market strategist for TD Ameritrade.

The S&P 500's current decline is the longest since a nine-day skid shortly before the 2016 presidential election. It has climbed 27.5 percent since Donald Trump was elected, and is still up 2.1 percent in 2018.

The market had been calm from late June through September as investors were satisfied with continued economic growth, strong company profits, and signs of progress in trade talks between the U.S. and several partners, although the U.S. remained at odds with China.

Delwiche, the Baird strategist, thinks the current slump isn't over yet.

"I don't see evidence right now that this is a one-off event," he said.

On Thursday, President Trump renewed his criticism of the Federal Reserve, blaming the recent downturn in the stock market on the Fed's rate policy.

"We have interest rates going up at a clip that's much faster than certainly a lot of people, including myself, would have anticipated. I think the Fed is out of control," the president said to reporters in the Oval Office.

Trump said he had no intention of firing Jerome Powell, who he appointed as Fed chairman in February.

Bond prices rose as the recent surge in yields attracted the attention of some investors. The yield on the 10-year Treasury note fell to 3.15 percent from 3.22 percent late Wednesday. That's still sharply higher than it was about a week ago, and earlier this week the yield on the 10-year note reached its highest level since mid-2011.

The drop in yields hurt banks, and JPMorgan Chase fell 3 percent to $1078.13 while Bank of America sank 3 percent to $28.36. JPMorgan Chase and several other banks will report their third-quarter results Friday morning

Technology and retail companies continued to stumble. Amazon dropped another 2 percent to $1,719.36 and Apple fell 0.9 percent to $214.45. Microsoft and Alphabet, Google's parent company, were little changed. Those stocks have made huge gains for years, but they're currently out of favor. Amazon and Alphabet, respectively the second- and fourth-most valuable U.S. companies, are in what's known as a "correction," a drop of more than 10 percent from a recent peak. Facebook, the sixth-largest company, has tumbled 29 percent since late July, surpassing the 20-percent threshold for a "bear market."

The Nasdaq composite has fallen 9.6 percent since it set a record high in late August and the Russell 2000 has fallen 11 percent.

U.S. crude dropped 3 percent while Brent crude, the international standard, dropped 3.4 percent. Wholesale gasoline, heating oil and natural gas also declined.

After months of declines, the price of gold jumped by the most in two years, rising 2.9 percent to $1,227.60 an ounce.

In other metals trading, silver rose 2 percent and copper added 0.8 percent.

The dollar fell to 111.94 yen from 112.59 yen, and the euro rose to $1.1594 from $1.1525.

Some days you feel like shooting the messenger....

Just joking John - I shouldn't think out loud..

Skate.

 

[bigdog]

https://www.usnews.com/news/busines...ounce-back-on-report-trump-xi-to-meet-at-g-20

Tech Stock Rally Helps Snap Losing Streak as Rough Week Ends
U.S. stocks rebound and finish with solid gains after big losses the past few days, but the S&P 500 still finishes with its worst week in six months.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — Stocks rebounded Friday, clawing back some of the week's steep losses, but the turbulent trading of the last few days left no doubt that the relative calm the markets enjoyed all summer had been shattered.

Major U.S. indexes ended the week down about 4 percent, their worst weekly loss in six months. An index measuring the performance of small-company stocks had its worst week since early 2016.

Big technology and consumer-focused companies led the recovery Friday. Longtime favorites of many investors, they had plunged in the last few days.

A major factor cited by market watchers for the pullback was a sharp increase in interest rates, which can slow the economy and make bonds more attractive to investors relative to stocks.

Apple climbed 3.6 percent to $222.11 and Microsoft gained 3.5 percent to $109.57. Amazon jumped 4 percent to $1,788.41. Those are the three most valuable companies in the U.S., and they suffered startling declines the last few days: on Wednesday each took its biggest loss in more than two years. That made for a dramatic end to three months of calm on the U.S. market.

The S&P 500 index rose 38.76 points, or 1.4 percent, to 2,767.13 to end a six-day losing streak. The benchmark index tumbled 4.1 percent this week, and it's down 5.6 percent since from its latest record high, set Sept. 20. Thanks in part to the big gain for technology companies, the Nasdaq composite jumped 167.83 points, or 2.3 percent, to 7,496.89.

The Dow Jones Industrial Average rose as much as 414 points early on, then gave it all up and turned slightly lower. It rebounded and finished with a gain of 287.16 points, or 1.1 percent, at 25,339.99.

The market's recent skid started last week, when strong economic data and positive comments from Federal Reserve Chair Jerome Powell helped set off a wave of selling in the bond market as investors they bet that the U.S. economy would keep growing at a healthy pace. That pushed bond prices lower and sent yields up to seven-year highs.

That drove interest rates sharply higher, which worried stock investors who felt that a big increase could stifle economic growth. The big swings in the market Friday suggest those fears haven't gone away. The VIX, a measurement of how much volatility investors expect, hasn't been this high in six months.

"What seems to have driven this is a fear interest rates were going to rise more quickly because the Fed was being too aggressive or the economy was going to overheat," said David Kelly, chief global strategist for JPMorgan Funds. Kelly said he doesn't think either of those fears is justified, as the Fed isn't raising interest rates that rapidly and economic growth hasn't sped up recently.

Small companies didn't fare as well. The Russell 2000 index rose just 1.30 points, or 0.1 percent, to 1,546.68 to wrap up its largest loss in one week since January 2016. High-dividend stocks like utilities and real estate investment trusts also rose less than the rest of the market. They held up relatively well over the past few days. Investors view them as relatively safe, steady assets that look better when growth is uncertain and the rest of the market is in turmoil.

U.S. automakers Ford and General Motors continued to slump. GM shed 1.6 percent to $31.79, its lowest in almost two years. Ford, trading at its lowest in almost nine years, dipped 1.9 percent to $8.64. Both have plunged this year as they deal with slowing sales and the Trump administration's tariffs on steel and aluminum, which are sending their manufacturing costs higher.

The stocks have fallen further in recent days following reports Ford might cut jobs. In late September, Ford CEO Jim Hackett said the steel and aluminum duties would cost the company $1 billion through 2019.

Investors are also growing more concerned that U.S.-China trade tensions are impairing global economic growth. The International Monetary Fund cut its forecast for global economic growth this week because of trade tensions and increased interest rates.

Sam Stovall, chief investment strategist for CFRA, said he thought stocks fell too far, but there could be more turmoil ahead for the markets. While stocks had done well in spite of the rising trade tensions between China and the U.S., investors seem more worried now.

"Everybody has been pretty much dismissing the effect of the trade war on U.S. equities, and now they're beginning to think 'wait a minute, maybe there could be a problem,'" he said. "I don't think the reasons for the decline have been resolved."

Bond prices edged lower. The yield on the 10-year Treasury note rose to 3.15 percent 3.13 percent. At the beginning of the year it stood at 2.46 percent.

U.S. crude oil added 0.5 percent to $71.34 a barrel in in New York. Brent crude, the international standard, picked up 0.2 percent to $80.43 a barrel in London.

Wholesale gasoline rose 0.5 percent to $1.94 a gallon. Heating oil fell 0.5 percent to $2.32 a gallon. Natural gas lost 1.9 percent to $3.16 per 1,000 cubic feet.

Asian stocks also rebounded. Japan's Nikkei 225 index gained 0.5 percent after sinking early in the day and following a nearly 4 percent loss on Thursday. Hong Kong's Hang Seng surged 2.1 percent and the Kospi in South Korea rose 1.5 percent.

European stocks finished mostly lower. The French CAC 40 dipped 0.2 percent and so did the FTSE 100 in Britain. The DAX in Germany slipped 0.1 percent.

After a big jump Thursday, gold lost 0.5 percent to $1,222 an ounce. Silver rose 0.2 percent to $14.64 an ounce. Copper slipped 0.1 percent to $2.80 a pound.

The dollar slipped to 112.01 yen from 111.94 yen. The euro fell to $1.1563 from $1.1594.

3828

 

[SirRumpole]

The "bondcano" killing the stock market.

http://www.abc.net.au/news/2018-10-...ar-as-the-bondcano-rumbles-ominously/10366678

 

[Skate]

The "bondcano" killing the stock market.

http://www.abc.net.au/news/2018-10-...ar-as-the-bondcano-rumbles-ominously/10366678

Thanks SirRumpole for the hyperlink - it's appreciated..

The article somewhat helps explains the current situation.

Skate

 

[Triple B]

Can someone give me an idea why volatility is less after this sell off compared to the last one??
More confidence this time perhaps?

 

[bigdog]

https://www.usnews.com/news/busines...tocks-slip-on-continuing-global-trade-worries

Stocks Fade and Finish Lower as Tech Companies Fall Again
US stocks end a wobbly day of trading with more losses as technology companies fall again, canceling out gains for smaller companies, industrials and high-dividend stocks.

Oct. 15, 2018, at 4:45 p.m.

By MARLEY JAY, AP Markets Writer

NEW YORK (AP) — After a wobbly day of trading, U.S. stocks fell for the seventh time in eight days Monday as technology companies continued to slide. Industrial and high-dividend companies rose, and the market's losses were limited relative to the steep losses it suffered last week.

Stocks opened lower and repeatedly switched between small gains and losses before falling in the last hour of trading. Along with technology companies, health care and energy stocks and retailers also fell as the companies that have led the U.S. market higher this year continued to struggle.

Defense contractors L3 and Harris made the biggest gains on the S&P 500 after announcing a deal to combine. Smaller companies fared better than the rest of the market and finished broadly higher.

Jason Pride, chief investment officer for private clients at Glenmede, said that investors expect many years of powerful profit growth from technology-oriented companies like Apple, Amazon and Netflix. Over the last two weeks, Wall Street has started considering the possibility that interest rates will rise more quickly, taking a bigger chunk out of those critical future profits.

"The more the company's valuation is dependent on some profit way ahead in time as opposed to the profits coming today, the more rate hikes should impact the valuation of that company," he said. Pride said the recent downturn is a healthy development for stocks.

"A five to 10 percent pullback of that magnitude is very normal and very reasonable for this market to go through," he said.

The S&P 500 index lost 16.34 points, or 0.6 percent, to 2,750.79. The Dow Jones Industrial Average retreated 89.44 points, or 0.4 percent, to 25,250.55. The Nasdaq composite skidded 66.15 points, or 0.9 percent, to 7,430.74. The Russell 2000 index of smaller-company stocks added 6.42 points, or 0.4 percent, to 1,553.09.

The S&P 500 lost 4.1 percent last week, its third weekly loss in a row and its biggest since late March, as investors worried about rising interest rates and trade tensions between the U.S. and China.

The technology companies that have led the market higher in recent years, including some of the world's most valuable companies, continued to decline. Apple gave up 2.1 percent to $217.36 and chipmaker Nvidia slipped 3.4 percent to $235.38.

Netflix, which is scheduled to report its third-quarter results late Tuesday, fell 1.9 percent to $333.13. It's fallen 20.5 percent since disclosing weak user growth three months ago.

Harris and L3 are combining to form L3 Harris Technologies, which will have annual sales of about $16 billion. That would make it the sixth-largest U.S. defense contractor and one of the top 10 globally. L3 gained 12.8 percent to $220.91 and Harris rose 11.9 percent to $173.25.

Bank of America's third-quarter profit and revenue were better than analysts expected, but Wall Street was disappointed with the company's loan growth. The company has emphasized responsible growth recently, and like other banks, it's benefiting from last year's corporate tax cut and rising interest rates. Its stock slipped 1.9 percent to $27.92.

Bond prices edged lower. The yield on the 10-year Treasury note rose to 3.16 percent from 3.14 percent late Friday.

Rising bond yields often lead to losses for high-dividend companies because many investors think of them as alternatives to bonds. That pattern hasn't held up in the last few days as investors have been looking for relatively safe picks on the stock market.

Germany's DAX jumped 0.8 percent and the FTSE 100 in Britain rose 0.5 percent. France's CAC 40 fell less than 0.1 percent.

Japan's benchmark Nikkei 225 dipped 1.9 percent and the South Korean Kospi edged down 0.8 percent. Hong Kong's Hang Seng fell 1.5 percent.

Global stock indexes have been struggling this year as investors move money to the U.S. and out of Europe and Asia in response to faster economic growth in the U.S. and rising trade tensions. The losses the last few weeks for global markets have made it even worse.

The Hang Seng index in Hong Kong has fallen 22 percent since early January, meeting Wall Street's definition of a "bear market," or a decline of 20 percent from a recent peak. A number of other indexes have fallen at least 10 percent, known as a "correction." Those include the DAX and Kospi, which both peaked in late January, and the FTSE 100, the Ibex in Spain and the FTSE MIB in Italy, which peaked in May.

U.S. crude rose 0.6 percent to $71.78 a barrel in New York. Brent crude, the standard for international oil prices, added 0.4 percent to $80.78 a barrel in London. Natural gas prices continued to surge as the weather in the U.S. grew colder. They rose 2.6 percent to $3.24 per 1,000 cubic feet and have climbed almost 8 percent in October to reach their highest price since January.

Wholesale gasoline edged up 0.1 percent to $1.94 a gallon and heating oil added 0.2 percent to $2.33 a gallon.

In another sign investors were nervous about stocks, gold rose 0.7 percent to $1,230.30 an ounce and silver picked up 0.6 percent to $14.73 an ounce. Copper lost 0.4 percent to $2.79 a pound.

The dollar fell to 111.88 yen from 112.01 yen. The euro rose to $1.1584 from $1.1563.