NYSE Dow Jones finished today at:

[bigdog]

Major U.S. stock indexes capped a day of listless trading with modest gains Thursday, snapping the market's two-day losing streak.

A late flurry of buying helped lift the indexes, which had spent much of the day moving sideways after an early rally lost momentum. Even so, the market remained on track for its fourth straight weekly loss and its first monthly decline of the year.

Gains in technology, health care and consumer discretionary stocks outweighed losses in energy, financials and other sectors. Bond prices rose again, sending yields lower. Oil and gas prices fell sharply.

Stocks have been sliding in volatile trading all month as investors come to grips with the potential impact that the escalating trade war between the U.S. and China could have on corporate and economic growth. With one day left of trading in May, the S&P 500 is heading for a monthly loss of about 5.3%.

https://www.usnews.com/news/busines...-mostly-fall-on-wall-street-slide-trade-fears

US Stocks Muster Slight Gains After Listless Day of Trading
Major U.S. stock indexes capped a day of listless trading with modest gains Thursday, snapping the market's two-day losing streak.
By Associated Press, Wire Service Content May 30, 2019, at 4:55 p.m.

By DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers

Major U.S. stock indexes capped a day of listless trading with modest gains Thursday, snapping the market's two-day losing streak.

A late flurry of buying helped lift the indexes, which had spent much of the day moving sideways after an early rally lost momentum. Even so, the market remained on track for its fourth straight weekly loss and its first monthly decline of the year.

Gains in technology, health care and consumer discretionary stocks outweighed losses in energy, financials and other sectors. Bond prices rose again, sending yields lower. Oil and gas prices fell sharply.

Stocks have been sliding in volatile trading all month as investors come to grips with the potential impact that the escalating trade war between the U.S. and China could have on corporate and economic growth. With one day left of trading in May, the S&P 500 is heading for a monthly loss of about 5.3%.

"This 5% or 6% sell-off is really just a resetting of expectations, especially with the sentiment that's been a gloomy overhang," said David Lyon, global investment specialist at J.P. Morgan Private Bank.

The S&P 500 index rose 5.84 points, or 0.2%, to 2,788.86. The Dow Jones Industrial Average gained 43.47 points, or 0.2%, to 25,169.88.

The Nasdaq composite added 20.41 points, or 0.3%, to 7,567.72. The Russell 2000 index of smaller companies fell 4.42 points, or 0.3%, to 1,485.53.

Major stock indexes in Europe rose broadly.

The U.S. stock market's slump in May follows a yearlong run for the S&P 500 that culminated in an all-time high on April 30. The benchmark index is still up 11.2% for the year, while the technology-heavy Nasdaq composite is up 14.1%.

Trade concerns could continue to hang over the market through late June. That's when U.S. and Chinese leaders will have an opportunity to meet at the next G20 summit in Japan.

"We don't expect there to be some grand bargain, but that will definitely set the tone," said Jim Smigiel, chief investment officer of non-traditional strategies at SEI.

Until then, investors will have to deal with more uncertainty over the trade war's impact on global growth, corporate profit results and monetary policy.

In early May the U.S. and China concluded their 11th round of trade talks with no agreement. The U.S. then more than doubled duties on $200 billion in Chinese imports, and China responded by raising its own tariffs.

Technology stocks, which are trailing only the energy sector in terms of losses this month, accounted for a big chunk of the market's gains Thursday. Keysight Technologies led the sector and all other S&P 500 stocks, surging 11.3% after the electronics company's first quarter profits beat analysts' forecasts. Intel rose 1.1% and Qualcomm gained 1.3%.

Health care companies, retailers and restaurant chains also notched gains. Vertex Pharmaceuticals climbed 2.2%. Home Depot gained 1.2% and McDonald's rose 1.6%. Dollar General had its biggest gain in five months after the discount retail chain reported solid quarterly results.

Energy stocks took the heaviest losses as crude oil prices fell sharply on oversupply concerns. The federal government reported that crude stocks fell just under 300,000 barrels last week. Oil trading advisory firm Ritterbusch and Associates expected a decline of 2 million barrels. Chevron slid 1.2% and Marathon Petroleum dropped 3.8%.

Banks fell as bond prices rose, sending bond yields lower. When bond yields decline they pull down interest rates, making loans less profitable. Bank of America slid 2.1% and Capital One Financial lost 1.2%.

The yield on the benchmark 10-year Treasury note fell to 2.22% from 2.23% late Wednesday. The yield has been at the lowest level in nearly two years since Tuesday. Lower bond yields are typically a sign that investors are worried about weakening economic growth.

Investors had their eye on a mixed batch of corporate earnings reports Thursday.

Dollar General rose 7.2% and Dollar Tree gained 3.1% after the discount retailers gave investors solid quarterly earnings results.

Some retailers put investors in a selling mood.

PVH, the owner of the Calvin Klein and Tommy Hilfiger brands, plunged 14.9% after cutting its full year profit forecast because of weak sales. PVH cited weak sales in the U.S. and China and put some of the blame on the ongoing trade war between the world's two biggest economies. Abercrombie & Fitch, Canada Goose and Capri Holdings, which owns Versace, all gave weak forecasts this week.

Nearly all of the companies in the S&P 500 have reported their latest round of quarterly financial results. Analysts had issued dire warnings for a severe earnings contraction early this year, but the results have been surprisingly good.

Overall, profit contracted less than a half-percentage point. That's far better than the 4% drop Wall Street expected.

A few companies have yet to report results. Ride-hailing company Uber, which went public earlier in May, reported late Thursday that it booked $1 billion in losses for its fiscal first quarter, even as its revenue jumped 20% from a year earlier.

Energy futures closed broadly lower Thursday. Benchmark U.S. crude skidded 3.8% to settle at $56.59 a barrel. Brent crude oil, the international standard, closed 3.7% lower at $66.87 per barrel.

Wholesale gasoline slid 3.4% to $1.88 per gallon. Heating oil dropped 2.7% to $1.92 per gallon. Natural gas gave up 2.9% to $2.55 per 1,000 cubic feet.

Gold gained 0.5% to $1,292.40 per ounce, silver added 0.6% to $14.49 per ounce and copper fell 0.4% to $2.65 per pound.

The dollar rose to 109.55 Japanese yen from 109.46 yen on Wednesday. The euro strengthened to $1.1135 from $1.1133.

 

[bigdog]

Wall Street is no fan of Tariff Man.

The stock market stumbled Friday to its first losing month of 2019 in May, primarily due to President Donald Trump's decision to broadly wield his tariff powers, first against China over trade and then against Mexico over immigration.

During stocks' month-long slide investors wrestled with the potential impact that the U.S.'s escalating trade war with China could have on corporate and economic growth. Friday's losses came after Trump announced plans via Twitter to impose tariffs on Mexico in a bid to compel the nation's third-biggest trading partner to crack down on migrants attempting to enter the U.S.

The move shocked investors and spurred a broad sell-off that sliced more than 350 points from the Dow Jones Industrial Average. The selling left the benchmark S&P 500 index 6.6% lower for the month, and up 9.8% for the year so far.

"Clearly the markets were blindsided and completely caught off guard," said Cliff Hodge, director of investments for Cornerstone Wealth.

https://www.usnews.com/news/busines...mixed-trade-worries-continue-on-trump-tariffs

Stocks End Rocky Month Lower as Trump Widens Trade War
Stocks closed out a turbulent month on Wall Street with another round of sharp losses Friday after President Trump announced plans to expand a trade war to Mexico.
By Associated Press, Wire Service Content May 31, 2019, at 5:27 p.m.

By DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers

Wall Street is no fan of Tariff Man.

The stock market stumbled Friday to its first losing month of 2019 in May, primarily due to President Donald Trump's decision to broadly wield his tariff powers, first against China over trade and then against Mexico over immigration.

During stocks' month-long slide investors wrestled with the potential impact that the U.S.'s escalating trade war with China could have on corporate and economic growth. Friday's losses came after Trump announced plans via Twitter to impose tariffs on Mexico in a bid to compel the nation's third-biggest trading partner to crack down on migrants attempting to enter the U.S.

The move shocked investors and spurred a broad sell-off that sliced more than 350 points from the Dow Jones Industrial Average. The selling left the benchmark S&P 500 index 6.6% lower for the month, and up 9.8% for the year so far.

"Clearly the markets were blindsided and completely caught off guard," said Cliff Hodge, director of investments for Cornerstone Wealth.

It was only a month ago that the S&P 500 hit a record high and underlined its claim as the longest bull market for stocks on record, at more than a decade long. The market had climbed steadily through 2019 amid rising investor confidence that a deal with China was at hand and that the Federal Reserve would not tip the economy into recession by raising interest rates too aggressively.

But when the first weekend of May arrived, Trump's tweet threatening more tariffs on China upended months of calm in the market. Investors are now preparing for a much longer and messier resolution to the global trade war than they were expecting just a few weeks ago.

The trade conflicts have also clouded the global economic outlook, with many economists now forecasting U.S. growth to weaken in the coming months. That's likely to weigh on corporate profits this year.

"What you had over the last few days really is an increase in global uncertainty, and the economic data has been poor and weakening," said Tom Martin, senior portfolio manager with Globalt Investments. "With rising costs as a result of tariffs and rising uncertainty, that's definitely going to have a damper on earnings."

The S&P 500 index fell 36.80 points, or 1.3%, to 2,752.06. It's the first time the S&P 500 has dropped for four straight weeks since autumn 2014.

The Dow lost 354.84 points, or 1.4%, to 24,815.04. The Nasdaq slid 114.57 points, or 1.5%, to 7,453.15. The Russell 2000 index of smaller companies gave up 20.04 points, or 1.4%, to 1,465.49.

Major stock indexes in Europe also fell.

"You had a market that was feeling as though President Trump would want to do a deal so that the economy would not be hurt," said Martin. "And now the behavior is indicating that he will use (tariffs) to accomplish his goals and seems less concerned about the actual economic impact."

Since the end of April, investors have sought out safer investments like utilities and bonds. Technology stocks, which led gains all year, were among the month's biggest losers. The technology heavy Nasdaq shed 7.9%, while technology companies within the S&P 500 lost 8.9%.

Utilities, which have lagged the market, fell only 1.3% in May, making them among the month's best performers. Meanwhile, real estate stocks posted a 0.9% gain, the only winners this month.

The new tariffs on Mexican goods shocked investors who were already nervous about a global trade war crimping economic growth.

The new front in the trade war hit automakers particularly hard. Many of them import vehicles from Mexico. General Motors slid 4.3% Friday, while Fiat Chrysler dropped 4.8%. Ford Motor lost 2.3%.

Banks also declined as higher bond prices pushed yields lower. The yield on the 10-year Treasury note slid to 2.13% from 2.22% late Thursday.

Investors have been shifting money into bonds over concerns that economic growth will be crimped by the ongoing trade war. Lower bond yields drag down interest rates, making lending less profitable for banks. Citigroup fell 2.3% and Bank of America lost 2.1%.

Energy companies sank following another broad slide in oil prices. Occidental Petroleum fell 4.1% and Valero Energy dropped 3.4%.

Investors have been fleeing to safer holdings all month. The shift to utilities and bonds quickened earlier in May after the U.S. and China broke off negotiations. The U.S. then pushed more tariffs on Chinese goods along with a ban on technology sales. That prompted retaliatory tariffs from China and threats over other key resources.

While the U.S. economy grew at a solid 3.1% annual rate in the January-March quarter, many economists now think growth is likely to weaken in coming months. They cite a range of threats facing the U.S. economy, including escalating trade conflicts, more cautious spending by consumers and businesses, and a global economic slowdown.

On Friday, a report showed China's factory activity slowed in May as the trade war between Washington and Beijing escalated.

Economists say China may be drawing up its own list of retaliatory targets among U.S. companies. The worry is that a trade war fought on multiple fronts around the world will be a drag on corporate profits and on a U.S. economy that's been supported by a solid job market.

That worry pulled the yield on the 10-year Treasury note to its lowest level since the summer of 2017. That's left long-term Treasury yields below some short-term yields, an unusual occurrence that many investors see as a warning sign of recession.

Investors are also raising their bets that the Federal Reserve will need to cut interest rates later in 2019 to help the economy, less than a year after it had been raising rates to get them closer to normal.

"The fact that the president is willing to use tariffs as a weapon can really cause damage to business confidence," Hodge said. "You've got to be wondering, who's next?"

Energy futures closed broadly lower Friday. Benchmark U.S. crude tumbled 5.5% to settle at $53.50 a barrel. Brent crude oil, the international standard, closed 3.6% lower at $64.49 per barrel.

Wholesale gasoline slid 4.1% to $1.80 per gallon. Heating oil dropped 3.8% to $1.84 per gallon. Natural gas gave up 3.7% to $2.45 per 1,000 cubic feet.

Gold gained 1.4% to $1,311.10 per ounce, silver added 0.5% to $14.57 per ounce and copper fell 0.5% to $2.64 per pound.

The dollar fell to 108.41 Japanese yen from 109.55 yen on Thursday. The euro strengthened to $1.1171 from $1.1135.

0067

 

[MrChow]

10 year - 3 month bond spread is now inverted at -0.21.

The last 2 times this happened was in 2000 and 2007 and there was a recession the next year.

 

[bigdog]

Major U.S. stock indexes ended mostly lower Monday amid signs that the Trump administration is laying the groundwork to ratchet up scrutiny on some of the market's biggest names: Apple, Facebook, Amazon and Google.

Google's parent Alphabet lost 6.1% and Facebook sank 7.5%. Apple shed 1% on the day that the iPhone seller kicked off its annual software showcase. Amazon fell 4.6%. The four have a combined market value of nearly $3 trillion, and their losses helped tilt the S&P 500 lower on a day when there were actually more gainers than losers in the stock market.

Investors were reacting to media reports suggesting that government regulators are setting the stage for potential antitrust probes into each of the four technology giants.

The sell-off knocked the tech-heavy Nasdaq composite index into a correction, Wall Street speak for a drop of 10% or more from a peak. The Nasdaq hit its most recent all-time high early last month, before the trade dispute between the U.S. and China escalated, setting off a monthlong slide.

https://www.usnews.com/news/busines...ets-wobble-as-us-china-trade-jibes-over-trade

US Stock Indexes End Mixed; Nasdaq Slumps on Big Tech Slide
Major U.S. stock indexes ended mostly lower Monday amid signs that the Trump administration is laying the groundwork to ratchet up scrutiny on some of the market's biggest names: Apple, Facebook, Amazon and Google.
By Associated Press, Wire Service Content June 3, 2019, at 5:40 p.m.

By DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers

Major U.S. stock indexes ended mostly lower Monday amid signs that the Trump administration is laying the groundwork to ratchet up scrutiny on some of the market's biggest names: Apple, Facebook, Amazon and Google.

Google's parent Alphabet lost 6.1% and Facebook sank 7.5%. Apple shed 1% on the day that the iPhone seller kicked off its annual software showcase. Amazon fell 4.6%. The four have a combined market value of nearly $3 trillion, and their losses helped tilt the S&P 500 lower on a day when there were actually more gainers than losers in the stock market.

Investors were reacting to media reports suggesting that government regulators are setting the stage for potential antitrust probes into each of the four technology giants.

The sell-off knocked the tech-heavy Nasdaq composite index into a correction, Wall Street speak for a drop of 10% or more from a peak. The Nasdaq hit its most recent all-time high early last month, before the trade dispute between the U.S. and China escalated, setting off a monthlong slide.

"We do have this trade uncertainty, and we now have some uncertainty with tech companies and government regulations," said Karyn Cavanaugh, senior markets strategist at Voya Investment Management. "These are the go-to big names, and if they're vulnerable, that just makes investors a little bit nervous."

The S&P 500 index fell 7.61 points, or 0.3%, to 2,744.45. The Dow Jones Industrial Average added 4.74 points, or less than 0.1%, to 24,819.78.

The Nasdaq composite lost 120.13 points, or 1.6%, to 7,333.02. It's now down 10.2% from its all-time high set May 3.

The Russell 2000 index of small companies rose 4.50 points, or 0.3%, to 1,469.98.

Major stock indexes in Europe closed broadly higher.

U.S. stock indexes briefly headed higher, with technology companies among the big gainers, in what appeared to be a budding rebound for the market after it closed out May with its first monthly decline this year.

But the slight gains evaporated as investors weighed the implications of a possible wave of heightened scrutiny on the market's biggest technology companies.

Alphabet tumbled as media reports suggested it faces an antitrust investigation by the Justice Department.

The company has faced a series of European regulatory investigations into its practices. In one instance last year, it was fined $5 billion by European regulators over contracts dealing with smartphone makers and the search engine's apps.

The speculation over the latest investigation comes on top of a tough weekend for the company when high levels of network congestion caused outages for some of its services, including YouTube and Google Cloud.

Reports also suggested the Justice Department would take the lead on any probe into Apple, while any antitrust investigations into Amazon and Facebook would come from the Federal Trade Commission. Reports say consumer groups and vendors have complained that Amazon is unfairly edging out competition as it expands its business and offerings.

Declines by the big tech companies depressed their sectors for much of the day. Microsoft dropped 3.1% and Twitter slid 5.5%. The losses outweighed gains in household goods makers, banks and elsewhere in the market.

Campbell Soup rose 2.9% and American International Group added 3.2%.

The day of indecisive trading came amid a wave of volatility in the market as investors wrestle with the uncertainty of the U.S. and its growing use of tariffs in international trade disputes.

Investors spent the bulk of May fleeing to safer holdings as a global trade war flared up. China and the U.S. have been escalating their trade dispute with more tariffs on each other's goods while also threatening to ban technology and resource sales. The U.S. expanded its trade war and threatened to impose tariffs on Mexican goods starting June 10 because of an immigration dispute.

All of these moves have rattled investors' confidence in prospects for global economic growth. Bank of America Merrill Lynch lowered its earnings estimates for companies in the S&P 500, citing trade tensions. Analysts have also warned that uncertainty over trade deals will crimp business confidence and keep companies from investing internationally.

"Things are likely to get worse before they get better," said a Bank of America Merrill Lynch report.

The investment bank is recommending more caution from investors as trade disputes play out. Investors have already been heading to less-risky holdings, including utility stocks and bonds, since the trade dispute with China sharply escalated in May.

Companies in the S&P 500 performed better than expected in the first quarter, posting less than a half-percentage point contraction in profit, according to Factset. But, the trade war continues hanging over the current quarter, with analysts expecting a 2% contraction in corporate profit.

Bond prices climbed again Monday, pulling the yield on the 10-year Treasury note down to 2.07% from 2.14% late Friday.

News of deals, confirmed and denied, drove movement for several stocks.

Cypress Semiconductor surged 23.8% on the announcement that German chipmaker Infineon is buying the company for more than $10 billion in cash. Cypress Semiconductors specializes in wireless and USB technology and Infineon said the deal with create the eighth biggest chipmaker in the world and a leading supplier of chips to the automotive sector.

Centene slid 10.3% after Humana declined to make a buyout proposal. Both insurance companies focus heavily on government-sponsored plans, including Medicare and Medicaid. Humana made clear that it is not seeking Centene in a rare filing aimed at quashing investor speculation. Humana shares rose 2.2%.

El Paso Electric jumped 13.5% after getting a $2.78 billion buyout offer from a private equity fund affiliated with J.P. Morgan.

Energy futures closed broadly lower Monday. Benchmark U.S. crude slid 0.5% to settle at $53.25 a barrel. Brent crude oil, the international standard, closed 1.1% lower at $61.28 per barrel.

Wholesale gasoline fell 1.7% to $1.74 per gallon. Heating oil dropped 1.8% to $1.81 per gallon. Natural gas gave up 2.1% to $2.40 per 1,000 cubic feet.

Gold gained 1.3% to $1,327.90 per ounce, silver added 1.2% to $14.74 per ounce and copper fell 0.4% to $2.65 per pound.

The dollar fell to 108.02 Japanese yen from 108.41 yen on Friday. The euro strengthened to $1.1257 from $1.1171.

 

[bigdog]

The Dow Jones Industrial Average jumped more than 500 points Tuesday as investors welcomed signs that the Federal Reserve may cut interest rates to help buttress U.S. economic growth in the face of escalating trade wars.

Optimism about a resolution to one of those trade disputes and a rebound in technology shares also boosted the market. The benchmark S&P 500 index notched its best day since early January.

Federal Reserve Chairman Jerome Powell spurred the rally when he said the central bank was "closely monitoring" trade developments and would "act as appropriate" to sustain the U.S. economic expansion. Investors read his remarks as a signal that the Fed will likely cut interest rates later this year.

Investors have been worried the expanding conflicts between the U.S. and some of its biggest trading partners could slow U.S. economic growth and stymie corporate profits. They've been dumping stocks for the past month and fleeing to safer holdings such as bonds.

https://www.usnews.com/news/busines...es-skid-after-technology-sell-off-hits-nasdaq

Dow Jumps Over 500 Points Amid Hopes of Fed Rate Cut
The Dow jumped more than 500 points Tuesday as investors welcomed signs the Fed may cut interest rates to help buttress U.S. economic growth in the face of escalating trade wars.
By Associated Press, Wire Service Content June 4, 2019, at 5:14 p.m.

By DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers

The Dow Jones Industrial Average jumped more than 500 points Tuesday as investors welcomed signs that the Federal Reserve may cut interest rates to help buttress U.S. economic growth in the face of escalating trade wars.

Optimism about a resolution to one of those trade disputes and a rebound in technology shares also boosted the market. The benchmark S&P 500 index notched its best day since early January.

Federal Reserve Chairman Jerome Powell spurred the rally when he said the central bank was "closely monitoring" trade developments and would "act as appropriate" to sustain the U.S. economic expansion. Investors read his remarks as a signal that the Fed will likely cut interest rates later this year.

Investors have been worried the expanding conflicts between the U.S. and some of its biggest trading partners could slow U.S. economic growth and stymie corporate profits. They've been dumping stocks for the past month and fleeing to safer holdings such as bonds.

"The concern in the market is that economic data is going to worsen," said Jeff Zipper, managing director at U.S. Bank Wealth Management. "If economic data worsens, then growth slows down. So obviously a rate cut would provide liquidity into the economy and the marketplace, and that's what investors are looking at right now."

The Nasdaq composite rode the rally in technology stocks to a gain of 194.10 points, or 2.7%, to 7,527.12. The index recouped the losses it racked up a day earlier, when tech stocks slumped over concerns that several big internet companies could face more scrutiny from antitrust regulators.

The S&P 500 index gained 58.82 points, or 2.1%, to 2,803.27, its best performance since Jan. 4. The Dow vaulted 512.40 points, or 2.1%, to 25,332.18.

The Russell 2000 index of small companies picked up 38.58 points, or 2.6%, to 1,508.56.

Major stock indexes in Europe also closed broadly higher.

Speaking at a Fed conference in Chicago, Powell said: "We are closely monitoring the implications of these developments for the U.S. economic outlook and, as always, we will act as appropriate to sustain the expansion."

Powell didn't explicitly say what the Fed would do. But his remarks fueled expectations that the central bank will cut rates at least once and possibly two or more times before year's end, in part because of the consequences of the trade war.

There is concern that the U.S. economic expansion, which next month will become the longest on record, could face growing risks of a recession as retaliatory tariffs weaken U.S. exports.

Investors in the futures market are now pricing in a 59 percent chance of a Fed rate cut by July.

"The market does not like uncertainty, so if we get more certainty as far what the Fed is going to do and what they're saying, that bodes well for the market," Zipper said.

The market's robust early gains this year were partly fueled by the Fed's move to take a more patient approach to its rates policy after steadily raising rates for two years. Investors have been hoping it will go further and cut interest rates to give economic growth another push.

Fresh hopes for a resolution in the U.S.-Mexico trade dispute also helped put investors in a buying mood.

Mexican Foreign Minister Marcelo Ebrard said that Mexico can likely reach a deal with the U.S. at a meeting Wednesday. That would stave off President Donald Trump's threat to place 5% tariffs on Mexican goods beginning June 10 as part of a broader immigration dispute.

The threat of a trade battle with Mexico has worried investors already nervous about the ongoing trade war between Washington and Beijing.

Automakers rallied as traders bet that the U.S. and Mexico will work out their trade issues. Many automakers import vehicles from Mexico and would be hit particularly hard if the U.S. imposes tariffs. Ford Motor climbed 3.2%, General Motors gained 6% and Fiat Chrysler added 4%.

Chipmakers were among the biggest gainers in the technology sector. Nvidia jumped 6.9% and Advanced Micro Devices climbed 7.2%. Other technology companies rallied. Microsoft rose 2.8% and Apple added 3.7%.

Facebook rose 2% after a shaky start. A top European Union legal adviser said that social media networks could be ordered to take down any text, photo or other media ruled to be defamatory by a court, anywhere in the world.

Banks also posted solid gains as bond prices fell, driving yields on the 10-year Treasury note to 2.12% from 2.08% late Monday. Banks benefit from higher yields because they can charge more interest on loans. Bank of America rose 4.6% and Citigroup gained 5.2%.

Traders bid up shares in Tiffany & Co. after the luxury jeweler beat Wall Street's profit forecasts for the first quarter. Investors focused on the solid profit figures amid a very mixed report. Tiffany gained 2.6%.

Energy futures closed mostly higher Tuesday. Benchmark U.S. crude gained 0.4% to settle at $53.48 a barrel. Brent crude oil, the international standard, closed 1.1% higher at $61.97 per barrel.

Wholesale gasoline fell 1% to $1.72 per gallon. Heating oil added 0.8% to $1.82 per gallon. Natural gas rose 0.5% to $2.42 per 1,000 cubic feet.

Gold inched 0.1% higher to $1,328.70 per ounce, silver added 0.2% to $14.77 per ounce and copper rose 0.7% to $2.67 per pound.

The dollar rose to 108.07 Japanese yen from 108.02 yen on Monday. The euro strengthened to $1.1258 from $1.1257.

 

[bigdog]

Stocks closed higher on Wall Street for the second straight day Wednesday, extending Tuesday's strong gains as investors bet an interest rate cut could be ahead.

Technology, industrial and health care companies accounted for much of the broad gains, which were tempered by a slide in energy stocks following a 3.4% plunge in the price of U.S. crude oil.

Traders shrugged off a report showing private U.S. companies added the fewest jobs in nine years last month. The bleak jobs snapshot may have been welcomed by investors hoping that it could help persuade the Federal Reserve to cut interest rates.

https://www.usnews.com/news/busines...ian-shares-jump-on-us-feds-rate-cut-bandwagon

Tech Companies Lead US Stocks Broadly Higher; Oil Slumps
Stocks closed higher on Wall Street for the second straight day Wednesday, extending the market's strong gains from the previous day.
By Associated Press, Wire Service Content June 5, 2019, at 4:53 p.m.

By DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers

Stocks closed higher on Wall Street for the second straight day Wednesday, extending Tuesday's strong gains as investors bet an interest rate cut could be ahead.

Technology, industrial and health care companies accounted for much of the broad gains, which were tempered by a slide in energy stocks following a 3.4% plunge in the price of U.S. crude oil.

Traders shrugged off a report showing private U.S. companies added the fewest jobs in nine years last month. The bleak jobs snapshot may have been welcomed by investors hoping that it could help persuade the Federal Reserve to cut interest rates.

"It could help underpin a Fed rate cut," said Quincy Krosby, chief market strategist at Prudential Financial. "The market has been in essence calling for a rate cut for a number of months as the economic data have waned and tariff issues have intensified."

The S&P 500 index gained 22.8 points, or 0.8%, to 2,826.15. The benchmark index's 2.1% gain Tuesday was its best performance since January.

The Dow Jones Industrial Average climbed 207.39 points, or 0.8%, to 25,539.57. The Nasdaq composite rose 48.36 points, or 0.6%, to 7,575.48. The Russell 2000 index of smaller companies slipped 1.77 points, or 0.1%, to 1,506.79.

Major stock indexes in Europe closed broadly higher.

Bond prices rose, pulling down yields on the 10-year Treasury note to 2.12% from 2.13% late Tuesday.

Federal Reserve Chairman Jerome Powell said Tuesday that the central bank was "closely monitoring" developments in the United States' multiple trade conflicts and would "act as appropriate" to sustain the nation's economic expansion.

Investors now expect the central bank to cut rates at least once and possibly twice before year's end, in part because of fallout from the trade war.

Stocks slumped in May as investors grew anxious over the trade disputes. An escalating trade war between the U.S. and China and the added threat of a new trade war with Mexico sent investors fleeing to safer holdings, like bonds.

The U.S. and Mexico were holding trade talks in Washington late Wednesday afternoon. A 5% tariff on imports from Mexico, which could affect U.S. companies making everything from cars to beer and tacos, is due to go into effect on Monday, barring an agreement between the two countries. The Trump administration is demanding that Mexico step up efforts to halt Central American migrants from making their way to the U.S.

Oil prices slumped following a report showing an unexpected surge in U.S. crude supplies.

Benchmark U.S. crude settled at $51.68 a barrel. Brent crude oil, the international standard, closed 2.2% lower at $60.63 a barrel.

U.S. crude has fallen in five of the past six weeks amid signs that China's economic growth is slowing. It's now 22.1% below its 2019 closing high of $66.30 in April. The slide puts U.S. crude in what Wall Street calls a bear market.

"Oil is lagging and it has to do with the perception that demand is down," Krosby said. "Couple that with supply growing and the equation is not positive for the price of oil."

Occidental Petroleum dropped 4.6% and Halliburton slid 3.5%.

Technology companies were among the most notable gainers Wednesday. Apple rose 1.6% and Microsoft added 2.2%. Salesforce climbed 5.1% after blowing away profit forecasts.

Traders also snapped up health care stocks. Boston Scientific gained 2.5% and Medtronic rose 2.3%.

Industrial stocks rose broadly, with notable gains by airlines as fuel costs fell. American Airlines Group gained 4.3% and Southwest Airlines rose 2.6%.

A trickle of corporate earnings reports moved several stocks.

Campbell Soup jumped 10% after the iconic 146-year-old company swung to a fiscal third quarter profit and beat Wall Street forecasts. The maker of Pepperidge Farm cookies and V8 juice also beat revenue forecasts for the quarter and said sales growth was fueled by its snacks business.

GameStop plummeted 35.5% after the video game maker badly missed sales estimates in the first quarter and eliminated its quarterly dividend. The company is in the midst of a cost-cutting program and coming off of a management shake up. The stock is now down 60.1% for the year.

Pivotal Software nosedived 41.3% after the cloud-computing company slashed its revenue forecast for the year.

In other energy futures trading, wholesale gasoline fell 1.8% to $1.69 per gallon. Heating oil dropped 2.3% to $1.78 per gallon. Natural gas slid 1.6% to $2.38 per 1,000 cubic feet.

Gold inched 0.4% higher to $1,333.60 per ounce, silver added 0.1% to $14.79 per ounce and copper fell 1.7% to $2.62 per pound.

The dollar rose to 108.42 Japanese yen from 108.07 yen on Tuesday. The euro weakened to $1.1228 from $1.1258.

 

[bigdog]

U.S. stocks finished higher Thursday as optimism that the U.S. and Mexico can work out a deal before costly tariffs kick in next week helped power the market to its third straight gain.

A modest rally gained strength in the final hour of trading after Bloomberg reported that the U.S. was considering delaying a 5% tariff on Mexican goods that is set to go into effect on Monday.

The report came as the two countries held a second day of trade talks. Both sides claimed to be making progress, but President Donald Trump insisted earlier in the day that a "lot of progress" had to be made before he would call off the tariffs.

https://www.usnews.com/news/busines...ll-as-trump-says-mexican-tariffs-still-coming

US Stocks Climb on Hope of US-Mexico Trade Deal
U.S. stocks finished higher Thursday as optimism that the U.S. and Mexico can work out a deal before costly tariffs kick in next week helped power the market to its third straight gain.
By Associated Press, Wire Service Content June 6, 2019, at 5:28 p.m

By DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers

U.S. stocks finished higher Thursday as optimism that the U.S. and Mexico can work out a deal before costly tariffs kick in next week helped power the market to its third straight gain.

A modest rally gained strength in the final hour of trading after Bloomberg reported that the U.S. was considering delaying a 5% tariff on Mexican goods that is set to go into effect on Monday.

The report came as the two countries held a second day of trade talks. Both sides claimed to be making progress, but President Donald Trump insisted earlier in the day that a "lot of progress" had to be made before he would call off the tariffs.

Investors have been anxious about escalating trade disputes between the U.S. and key trading partners, primarily China. Worries that the trade conflicts will drag on, stifling economic growth and hurting corporate profits, drove a monthlong sell-off in May. That derailed a market run that culminated with the benchmark S&P 500 setting an all-time high on April 30.

Stocks gave up more ground on Monday, but the market has bounced back and is on track to end the first week of June with solid gains.

"History says, as a result of such a good start to the year, don't be surprised that May is down, because it has been 60% of the time," said Sam Stovall, chief investment strategist at CFRA. "Yet, after a down May, we tend to get a reflex rally in June 100% of the time."

The S&P 500 index gained 17.34 points, or 0.6%, to 2,843.49. The Dow Jones Industrial Average rose 181.09 points, or 0.7%, to 25,720.66. It briefly climbed 260 points.

The Nasdaq composite reversed an early slide, adding 40.08 points, or 0.5%, to 7,615.55. The Russell 2000 index of smaller companies dropped 3.25 points, or 0.2%, to 1,503.54.

Stock indexes in Europe finished mixed.

Bond prices fell, pushing up the yield on the 10-year Treasury note to 2.13% from 2.12% late Wednesday.

U.S. and Mexican officials continued trade talks on Thursday in a bid to avert import tariffs that President Trump has threatened to impose unless Mexico acts to stem the flood of Central American migrants at America's southern border.

Lawmakers who have been in talks with both U.S. and Mexican officials said they were hopeful a deal could be reached to satisfy Trump, or at least delay the tariffs.

The trade dispute with Mexico and China threatens to stifle economic growth in the U.S. and globally. Uncertainty surrounding the trade negotiations has sent many traders fleeing to safer investments, like bonds and gold.

Still, investors have been in a buying mood most of this week because they're betting the Federal Reserve will cut interest rates this year. Fed Chairman Jerome Powell said Tuesday that the central bank would "act as appropriate" if the Trump administration's disputes with China and Mexico threatened U.S. economic expansion.

The government's May jobs report, due out Friday, could prove a key factor in what the Fed does next. A separate gauge of employment growth by ADP earlier this week showed a sharp slowdown in hiring last month. And economists surveyed by FactSet are projecting that the government will also report that hiring slowed last month.

"Investors would prefer a lighter side report for employment Friday because it would help keep the pressure off the Fed from certainly raising rates, but would give it an additional reason to lower rates," Stovall said.

Technology, consumer staples and financial stocks were among the big gainers Thursday. Chipmaker Advanced Micro Devices jumped 7.9%, Campbell Soup added 2.6% and American Express gained 1.1%.

Energy stocks recouped some ground following a broad sell-off a day earlier as crude oil prices rose. Occidental Petroleum rose 3.4% and Chevron added 2.6%.

A smattering of company earnings results brought on either severe punishment or lavish rewards from investors.

Arts and crafts retailer Michaels plunged 12.4% after sales at established stores fell more sharply than Wall Street had forecast. The company also trimmed its full year profit forecast.

Stitch Fix shares surged 14.7% after the online clothing styling service surprised investors with a fiscal third quarter profit.

Ciena shares jumped 26.8% after the developer of high-speed networking technology beat Wall Street's fiscal second quarter financial forecasts.

Oil prices rebounded after a steep sell-off a day earlier.

Benchmark U.S. crude gained 1.8% to settle at $52.90 a barrel. Brent crude oil, the international standard, closed 1.7% higher at $61.67 a barrel.

U.S. crude has fallen in five of the past six weeks amid signs that China's economic growth is slowing. Despite Thursday's increase, it remains 20.7% below its 2019 closing high of $66.30 in April. The slide puts U.S. crude in what Wall Street calls a bear market.

In other energy futures trading, wholesale gasoline rose 0.9% to $1.71 per gallon. Heating oil added 0.5% to $1.79 per gallon. Natural gas slid 2.3% to $2.32 per 1,000 cubic feet.

Gold rose 0.7% higher to $1,342.70 per ounce, silver added 0.8% to $14.91 per ounce and copper gained 1% to $2.65 per pound.

The dollar rose to 108.44 Japanese yen from 108.42 yen on Wednesday. The euro strengthened to $1.1273 from $1.1228.

 

[bigdog]

Wall Street turned the page on a painful May in the stock market by notching its best week since late November.

Stocks climbed for a fourth consecutive day Friday, capping a week of gains that reversed most of the losses in May, when President Donald Trump's tariff threats escalated trade wars with China and Mexico.

The latest rally came as investors welcomed a report showing that the U.S. added fewer jobs than expected last month. The lackluster snapshot of hiring appeared to increase the odds that the Federal Reserve will have to cut interest rates in coming months.

Stocks surged earlier this week when Federal Reserve Chairman Jay Powell said that the central bank would "act as appropriate" if the trade disputes threatened U.S. economic expansion.

https://www.usnews.com/news/busines...rail-us-rise-on-us-mexico-trade-deal-optimism

US Stock Market Notches Best Week Since Late November
Wall Street turned the page on a painful May in the stock market by notching its best week since late November.
By Associated Press, Wire Service Content June 7, 2019, at 4:54 p.m.

By DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers

Wall Street turned the page on a painful May in the stock market by notching its best week since late November.

Stocks climbed for a fourth consecutive day Friday, capping a week of gains that reversed most of the losses in May, when President Donald Trump's tariff threats escalated trade wars with China and Mexico.

The latest rally came as investors welcomed a report showing that the U.S. added fewer jobs than expected last month. The lackluster snapshot of hiring appeared to increase the odds that the Federal Reserve will have to cut interest rates in coming months.

Stocks surged earlier this week when Federal Reserve Chairman Jay Powell said that the central bank would "act as appropriate" if the trade disputes threatened U.S. economic expansion.

The lackluster jobs report could signal growing caution by businesses as economic growth slows and the U.S. engages in multiple trade conflicts.

"It's a strange market right now," said Gene Goldman, chief investment officer and director of research at Cetera Financial Group. "The markets are taking bad news as good news as reason to rally."

The S&P 500 index rose 29.85 points, or 1.1%, to 2,873.34. The benchmark index notched its first weekly gain in five weeks and its best weekly gain since the week of November 26.

The Dow Jones Industrial Average gained 263.28 points, or 1%, to 25,983.94. It had briefly been up 352 points.

The Nasdaq composite climbed 126.55 points, or 1.7%, to 7,742.10. The Russell 2000 index of smaller companies picked up 10.85 points, or 0.7%, to 1,514.39.

Major stock indexes in Europe also finished higher.

Bond prices rose, pushing yields lower, a sign that the market is worried about slower economic growth. The yield on the 10-year Treasury fell to 2.08% from 2.12% on Thursday. That hurt banks, which rely on higher yields for profit from loan interest. Citigroup slid 1.2%.

Most other sectors climbed Friday. Technology stocks led the gainers. Microsoft rose 2.8% and Apple added 2.7%. Health care companies and internet stocks were also among the largest gainers. Johnson & Johnson rose 1.4%, Facebook climbed 3% and Twitter added 3.7%.

Retailers notched solid gains, led by Foot Locker, which climbed 3.3%. Ross Stores closed 3.1% higher.

Analysts are more confident that the Fed is closer to cutting rates as it gauges the latest weak employment data and downward revisions for previously reported data. The Labor Department said U.S. employers added just 75,000 jobs last month, and also said hiring in March and April was not quite as robust as originally reported.

"The stock markets are banking on the Fed's ability to step in and save the day, as it has for much of the last decade," said Cliff Hodge, director of investments for Cornerstone Wealth.

The next rate cut could come as early as July, he said, as the slide in bond yields signals that investors are preparing for slower economic growth.

While investors welcome the idea of a rate cut, such a move would suggest that the central bank is worried about the economy, which would not be good for the labor market, said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

"We would view that as a sugar high as opposed to what the market really needs in order to make meaningful new highs driven by fundamentals," Samana said. "Especially today with the market now back close to 2,900, our 2 cents for investors would be that the risk outweighs the reward."

Investors were also optimistic about prospects for a U.S.-Mexico trade deal. The U.S. is poised to start imposing 5% tariffs on Mexican goods Monday but both sides are negotiating and media reports have suggested that the U.S. could consider delaying the tariffs.

Even with this week's gains, several sectors have a ways to go before they make up the losses they suffered last month as the trade disputes escalated.

The technology heavy Nasdaq is still down 5.2% from its record on May 3. Facebook and Google parent Alphabet dragged down the internet-heavy communications sector over the past month. It's down 7.5% from its April 29 high, the worst drop of any S&P sector. Consumer-focused stocks are down 4.6%, with a large portion of companies depending on China for significant revenue.

Meanwhile, investors have bought bonds, signaling their expectation that the Fed would cut rates. The yield on the 10-year Treasury is now 2.08%, down from a close of 2.48% on April 7. Yields move inversely to bond prices.

On Friday, traders showed a hearty appetite for Beyond Meat, driving its shares 39.3% higher, after the plant-based meat maker beat Wall Street's first quarter financial forecasts. The company also gave investors a solid revenue forecast for the year. At around $138, Beyond Meat's stock price is now more than five times higher than the $25 offering price of its May 2 initial public offering.

Barnes & Noble rose 11.1% after the last of the big book retailers announced its sale to a hedge fund for $476 million. Elliott Management is expected to complete the buyout in the third quarter. The chain was blamed for the demise of independent bookstores and was ultimately laid low by the shift to online sales and Amazon's rise.

Energy futures finished higher Friday. Benchmark U.S. crude gained 2.7% to settle at $53.99 a barrel. Brent crude oil, the international standard, closed 2.6% higher at $63.29 a barrel.

Wholesale gasoline rose 1.8% to $1.74 per gallon. Heating oil climbed 2% to $1.82 per gallon. Natural gas added 0.6% to $2.34 per 1,000 cubic feet.

Gold rose 0.3% to $1,346.10 per ounce, silver added 0.8% to $15.03 per ounce and copper slid 0.9% to $2.63 per pound.

The dollar fell to 108.15 Japanese yen from 108.44 yen on Thursday. The euro strengthened to $1.1338 from $1.1273.

0431

 

[bigdog]

Australian ASX closed for Queens Birthday Monday June 10

Technology companies and banks helped power stocks higher on Wall Street Monday as investors welcomed news that the U.S. and Mexico averted a trade war and potentially damaging tariffs.

The latest gains extend the market's winning streak to a fifth day. That follows the strongest week for stocks since November in what has been a marked turnaround for the market after escalating trade tensions fueled a turbulent skid in May.

Some of those trade jitters eased a bit Monday, at least in regard to the trade spat between the U.S. and Mexico. President Donald Trump suspended plans to impose tariffs on Mexican goods after the countries struck a deal on immigration. The dispute threatened to raise costs for American companies and consumers and expand a global trade war that already includes China.

https://www.usnews.com/news/busines...rise-as-chinese-trade-data-beats-expectations

US Stocks Climb After US Suspends Tariffs on Mexican Goods
Technology companies and banks helped power stocks higher on Wall Street Monday as investors welcomed news that the U.S. and Mexico averted a trade war and potentially damaging tariffs.
By Associated Press, Wire Service Content June 10, 2019, at 5:05 p.m.

By DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers

Technology companies and banks helped power stocks higher on Wall Street Monday as investors welcomed news that the U.S. and Mexico averted a trade war and potentially damaging tariffs.

The latest gains extend the market's winning streak to a fifth day. That follows the strongest week for stocks since November in what has been a marked turnaround for the market after escalating trade tensions fueled a turbulent skid in May.

Some of those trade jitters eased a bit Monday, at least in regard to the trade spat between the U.S. and Mexico. President Donald Trump suspended plans to impose tariffs on Mexican goods after the countries struck a deal on immigration. The dispute threatened to raise costs for American companies and consumers and expand a global trade war that already includes China.

During an interview with CNBC, Trump said Monday that he expects to meet with Chinese President Xi Jinping at the Group of 20 summit in Japan later this month. That may have given investors some cause for optimism in the dispute between Washington and Beijing, though Trump noted that an additional wave of U.S. tariffs on Chinese goods will go into effect if the Xi refuses to meet at the summit.

"Relief in trade tensions, in terms of Mexico, and hope for relief in trade tensions with China seem to be helping the market today," said Willie Delwiche, investment strategist at Baird.

The S&P 500 index gained 13.39 points, or 0.5%, to 2,886.73. The benchmark index rose 4.4% last week, its best weekly performance of 2019. It's now about 2% below its record set on April 30.

The Dow Jones Industrial Average rose 78.74 points, or 0.3%, to 26,062.68. The Nasdaq composite climbed 81.07 points, or 1.1%, to 7,823.17. The Russel 2000 index of smaller companies gained 9.17 points, or 0.6%, to 1,523.56.

Stock indexes in Europe finished broadly higher.

The latest gains build on the market's momentum from last week, when a lackluster U.S. jobs report appeared to increase the odds that the Federal Reserve will have to cut interest rates in coming months. Last week, Federal Reserve Chairman Jay Powell held out the possibility that the central bank will soon cut rates to protect the economic recovery from any damage resulting from the Trump administration's multiple trade disputes. Many analysts think the Fed will cut rates more than once before year's end, perhaps beginning in July.

"We have essentially, over five trading days, undone the preceding 19 days' worth of weakness," Delwiche noted.

Other market indicators still signal that investors are worried about the potential for an economic slowdown, however.

The yield on the 10-year Treasury note remains sharply lower from where it was at the beginning of May, before the Trump administration's tariff threats escalated trade conflicts with China and Mexico. That spooked investors, triggering a monthlong sell-off that derailed the market's strong start to the year.

"If you look beyond the S&P 500, it's not nearly as rosy a picture," Delwiche said. "You don't want to make too much of what we've seen over the past week. It's been encouraging, but it's by no means an all-clear, everything-is-OK signal."

On Monday, news of the deal between the U.S. and Mexico helped lift shares in automakers and consumer-related companies that would suffer from new tariffs on goods from Mexico. Ford rose 0.6% and General Motors gained 1.5%. Constellation Brands, which makes Corona beer, rose 1.9%.

Technology companies accounted for much of the market rally. Apple rose 1.3%. Chipmakers made some of the biggest moves, with Nvidia adding 2% and Qualcomm rising 2.7%.

Banks were also among the biggest gainers as lower bond prices pushed yields higher. The yield on the 10-year Treasury note rose to 2.14% from 2.08% late Friday. Higher yields raise banks' profits from loan interest. Bank Of America gained 2% and Citigroup rose 2.2%.

Consumer-related and internet stocks also gained ground as investors shifted into high-growth holdings and away from utilities and other safe-play sectors. Amazon climbed 3.1% and Facebook added 0.8%.

Utilities, real estate and consumer staples lagged other sectors.

Traders also cheered a couple of multibillion-dollar deals, including a merger of Raytheon and United Technologies that would create one of the world's largest defense contractors.

Raytheon is known for its missiles, including the Patriot system. United Technologies is a maker of aircraft engines, among other industrial products.

The combined company will have sales of about $74 billion, pushing it ahead of competitors including Lockheed Martin and Northrop Grumman. Raytheon shares rose 0.7%, while United Technologies dropped 3.1%.

Investors bid up shares in Tableau 33.7% after customer-management software developer Salesforce said it would buy the company in an all-stock deal valued at $15.7 billion. Salesforce fell 5.3%.

The deal comes a few days after Google said it is purchasing data analytics firm Looker for $2.6 billion in order to expand its Google Cloud business.

Energy futures finished mostly lower Monday. Benchmark U.S. crude slid 1.4% to settle at $53.26 a barrel. Brent crude oil, the international standard, closed 1.6% lower at $62.29 a barrel.

Wholesale gasoline fell 0.5% to $1.73 per gallon. Heating oil dropped 1% to $1.81 per gallon. Natural gas added 0.9% to $2.36 per 1,000 cubic feet.

Gold fell 1.2% to $1,329.30 per ounce, silver lost 2.6% to $14.64 per ounce and copper gained 1.3% to $2.66 per pound.

The dollar rose to 108.44 Japanese yen from 108.15 yen on Friday. The euro weakened to $1.1315 from $1.1338.

 

[bigdog]

U.S. stocks fell Tuesday for the first time in six days after the recent upward momentum gave way to lingering concerns about the U.S. trade war with China.

Defense contractors suffered steep declines and technology stocks gave up most of their early gains, taking the steam out of a morning rally on Wall Street. The Dow Jones Industrial Average closed with a loss of 14 points after rising as many as 186 points just after trading began.

The market had rallied for five straight days since the Federal Reserve signaled it is open to cutting interest rates if needed to stabilize the economy rattled by trade disputes. The gains had erased much of the S&P 500's 6.6% decline in May. But Tuesday, concerns that the U.S. trade spat with China could be prolonged and hurt growth in the world's two biggest economies dimmed investor enthusiasm.

https://www.usnews.com/news/busines...es-rise-as-trump-plans-to-meet-chinese-leader

Stocks Fizzle After Early Gains, Suffer 1st Loss in 6 Days
U.S. stocks gave up early gains and fizzled in afternoon trading after technology and industrial companies headed lower.
By Associated Press, Wire Service Content June 11, 2019, at 5:23 p.m.

By DAMIAN J. TROISE, AP Business Writer

NEW YORK (AP) — U.S. stocks fell Tuesday for the first time in six days after the recent upward momentum gave way to lingering concerns about the U.S. trade war with China.

Defense contractors suffered steep declines and technology stocks gave up most of their early gains, taking the steam out of a morning rally on Wall Street. The Dow Jones Industrial Average closed with a loss of 14 points after rising as many as 186 points just after trading began.

The market had rallied for five straight days since the Federal Reserve signaled it is open to cutting interest rates if needed to stabilize the economy rattled by trade disputes. The gains had erased much of the S&P 500's 6.6% decline in May. But Tuesday, concerns that the U.S. trade spat with China could be prolonged and hurt growth in the world's two biggest economies dimmed investor enthusiasm.

Katie Nixon, chief investment officer at Northern Trust Wealth Management, said there is no clear resolution in sight to the trade war and investors will have to get accustomed to uncertainty hanging over the market.

"The market's going to be really sensitive to trade news," she said. "This is going to be very hard to resolve neatly and quickly."

President Donald Trump has said he plans to meet with Chinese President Xi Jinping at the Group of 20 summit late this month in Osaka, Japan. But Trump reiterated Tuesday that if the two can't reach an agreement on trade, he'll proceed with tariffs on $300 billion goods from China that aren't already subject to import taxes.

Defense companies were the biggest decliners in the S&P 500. The market on Monday welcomed news of a megamerger between Raytheon and United Technologies, but the stocks dropped sharply Tuesday. Raytheon lost 5.1% and United Technologies shed 4%. L3 Technologies fell 4.4% and Harris Corp. dropped 4.3%. On Monday, Trump expressed some reservations about the Raytheon-United Technologies tie-up.

Technology stocks also gave up some early gains. Adobe fell 1.6% and Advanced Micro Devices fell 2.5%. The tech sector is still up nearly 24% so far this year, the best performer among the 11 sectors in the S&P 500.

Consumer-focused stocks and internet companies were among the gainers. Facebook rose 1.9% and Verizon gained 1.2%. Walgreens rose 1.1% and Dollar Tree rose 2.7%.

The S&P 500 slipped 1.01 point, or 0.03%, to 2,885.72. The Dow fell 14.17 points, or 0.1%, to 26,048.51. The Nasdaq composite slipped 0.60 of a point to end at 7,822.57. The Russell 2000 index of small companies fell 4.45 points, or 0.3%, to 1,519.11.

John Lynch, chief investment strategist at LPL Research, said in a note to clients that a trade deal with China "is unlikely until more economic pain is incurred by both China and the United States." That pain will eventually push the two sides to strike a deal, he said.

Both Lynch and Nixon said that the longer the trade war goes on, and tariffs are in place against Chinese goods, the more likely it is that the Fed will cut rates. The futures market is indicating that investors expect the Fed to cut its benchmark interest rate as early as its July policy meeting.

Nixon noted that the bond market has been sending the Fed a clear message that the central bank is behind the curve on lowering rates. The volatile stock market, weak economic data and higher bond prices are all potential catalysts for a rate change.

"The tea leaves are all there for them to read, if they want to read them," she said.

The yield on the 10-year Treasury has dropped from around 2.50% in early May to 2.14% Tuesday.

Meanwhile, one of the market's recent high-flyers had a rare bad day.

Beyond Meat fell 25% after J.P. Morgan's Ken Goldman and James Allen downgraded the stock to "neutral." The downgrade follows a surge in the stock price from $25 to $167 since the maker of plant-based meat alternatives started trading publicly on May 2. In a note to clients Tuesday, Goldman and Allen said the downgrade was "purely a valuation call."

GrubHub jumped 8.3% after the online food service company got some relief from competitive pressures. Amazon is closing its U.S. restaurant delivery service, a 4-year-old business that failed to take off. The sector is highly competitive and includes Uber Eats and Door Dash, along with GrubHub and others.

In other trading, energy futures finished mostly higher Tuesday. Benchmark U.S. crude rose 1 cent to $53.27 a barrel. Brent crude oil, the international standard, was unchanged at $62.29 a barrel.

Wholesale gasoline rose 1.7% to $1.76 per gallon. Heating oil rose to $1.82 per gallon. Natural gas added 1.7% to $2.40 per 1,000 cubic feet.

Gold rose 0.1% to $1,331.20 per ounce, silver rose 0.7% to $14.74 per ounce and copper gained 0.4% to $2.672 per pound.

The dollar rose to 108.50 Japanese yen from 108.44 yen on Friday. The euro weakened to $1.1332 from $1.1315

 

[bigdog]

Stocks closed modestly lower on Wall Street Wednesday, handing the market its second straight loss.

Banks and technology companies accounted for much of the slide as investors shifted money into U.S. bonds, precious metals and other holdings considered safe havens after more than a week of aggressive buying.

Energy stocks took the heaviest losses following a 4% drop in the price of U.S. crude oil. That helped outweigh gains in health care, utilities and elsewhere in the market.

The latest decline followed a broad drop in stocks that ended a five-day winning streak for the market. The Federal Reserve set off last week's rally when it signaled that it is willing to cut interest rates to help stabilize the economy if the U.S. trade war with China starts to crimp growth.

https://www.usnews.com/news/busines...cks-mostly-lower-after-retreat-on-wall-street

Banks and Tech Stocks Drag Market to 2nd Straight Loss
Stocks closed modestly lower on Wall Street Wednesday, handing the market its second straight loss.
By Associated Press, Wire Service Content June 12, 2019, at 5:07 p.m.

By DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers

Stocks closed modestly lower on Wall Street Wednesday, handing the market its second straight loss.

Banks and technology companies accounted for much of the slide as investors shifted money into U.S. bonds, precious metals and other holdings considered safe havens after more than a week of aggressive buying.

Energy stocks took the heaviest losses following a 4% drop in the price of U.S. crude oil. That helped outweigh gains in health care, utilities and elsewhere in the market.

The latest decline followed a broad drop in stocks that ended a five-day winning streak for the market. The Federal Reserve set off last week's rally when it signaled that it is willing to cut interest rates to help stabilize the economy if the U.S. trade war with China starts to crimp growth.

Investors are worried that the dispute will drag on much longer than previously expected, weighing on economic growth and corporate profits. That has traders looking ahead to next week's Fed meeting.

"There are concerns about whether or not the Fed next week at its meeting is going to in fact continue to move its stance toward lowering rates," said Quincy Krosby, chief market strategist at Prudential Financial. "The increasing concern is that the global economy continues to slow and that the slowdown is affecting the United States as well."

The S&P 500 index lost 5.88 points, or 0.2%, to 2,879.84. The benchmark index rose 4.4% last week, its best weekly performance of 2019. It's now about 2.2% below its record set on April 30.

The Dow Jones Industrial Average fell 43.68 points, or 0.2%, to 26,004.83. The technology heavy Nasdaq composite index dropped 29.85 points, or 0.4%, to 7,792.72. The Russell 2000 index of smaller company stocks gained 0.68 points, or less than 0.1%, to 1,519.79.

Major indexes in Europe fell broadly.

The sell-off in U.S. markets reflects heightened investor uncertainty over trade and its impact on the economy.

President Donald Trump's decision to threaten an expansion of the trade war to Mexico made a jittery market even more uneasy. Those potential tariffs have been indefinitely postponed, but the move left its mark.

"This was a game changer, the idea that the administration would use tariffs to further policy that is not related to trade is concerning," said Kristina Hooper, chief global market strategist at Invesco.

Investors will likely have to deal with more volatility ahead of an economic summit later this month. Trump has said he plans to meet with Chinese President Xi Jinping at the Group of 20 summit in Osaka, Japan. But Trump has also said that if the two can't reach an agreement on trade, he'll proceed with tariffs on $300 billion goods from China that aren't already subject to import taxes.

Technology companies accounted for much of the market's slide Wednesday. The sector has been under the most pressure from swings in sentiment over the trade dispute between the U.S. and China. Cisco Systems fell 2.2% and Micron Technology dropped 5.4%.

Banks declined as bond prices rose, nudging yields lower. The yield on the 10-year Treasury note fell to 2.12% from 2.14% late Tuesday. Lower yields pull down interest rates on loans, reducing banks' profits. Bank Of America dropped 1% and Citigroup fell 1.6%.

Health care, utilities and industrial companies were among the gainers. Johnson & Johnson gained 1.4%, Exelon rose 2.5% and American Airlines Group added 1.7%.

Traders hammered shares in Dave & Buster's Entertainment after the company gave investors a dismal first quarter financial report and slashed its revenue forecast for the year. The stock plunged 22.4%, its worst one-day loss in over a year.

Mattel climbed 5.3% on published reports saying the toy maker rejected another buyout offer from Bratz doll maker MGE Entertainment.

Medidata Solutions slid 3.6% after the company announced a deal to be acquired at a discount price to French software company Dassault Systems. The deal values the provider of cloud-based services and software at $92.25 per share, less than its closing price of $94.75 on Tuesday.

In other trading, energy futures finished lower Wednesday. Benchmark U.S. crude slid 4% to settle at $51.14 a barrel. Brent crude oil, the international standard, dropped 3.7% to close at $59.97 a barrel.

Wholesale gasoline fell 4% to $1.69 per gallon. Heating oil slid 2.3% to $1.78 per gallon. Natural gas dipped 0.5% to $2.39 per 1,000 cubic feet.

Gold rose 0.4% to $1,336.80 per ounce, silver inched 0.1% higher to $14.75 per ounce and copper fell 0.7% to $2.65 per pound.

The dollar fell to 108.48 Japanese yen from 108.50 yen on Tuesday. The euro weakened to $1.1286 from $1.1332.

 

[bigdog]

Gains in energy and internet companies helped drive stocks broadly higher on Wall Street Thursday, snapping a two-day losing streak for the market in an otherwise choppy week of trading.

The gains were initially fueled by rising oil prices, which boosted energy companies following a suspected attack on two oil tankers in the strategic Strait of Hormuz. The sector sustained its gains as a mix of media, internet and consumer-oriented companies took the lead in pushing every major index higher. Small company stocks rose more than the rest of the market.

Investors have been searching for direction as they cautiously await any new developments on the global trade war between the U.S. and China. Any continued escalations could crimp global economic growth and put the brakes on what is poised to be the longest economic expansion in U.S. history.

Anticipation of next week's Federal Reserve meeting of policyholders helped lift the market Thursday, said Jeff Zipper, managing director at U.S. Bank Private Wealth Management.

https://www.usnews.com/news/busines...ares-mixed-on-jitters-over-hong-kong-protests

US Stocks Notch Gains, Snap Short Losing Streak
Gains in energy and internet companies helped drive stocks broadly higher on Wall Street Thursday, snapping a two-day losing streak in an otherwise choppy week of trading.
By Associated Press, Wire Service Content June 13, 2019, at 5:01 p.m.

By DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers

Gains in energy and internet companies helped drive stocks broadly higher on Wall Street Thursday, snapping a two-day losing streak for the market in an otherwise choppy week of trading.

The gains were initially fueled by rising oil prices, which boosted energy companies following a suspected attack on two oil tankers in the strategic Strait of Hormuz. The sector sustained its gains as a mix of media, internet and consumer-oriented companies took the lead in pushing every major index higher. Small company stocks rose more than the rest of the market.

Investors have been searching for direction as they cautiously await any new developments on the global trade war between the U.S. and China. Any continued escalations could crimp global economic growth and put the brakes on what is poised to be the longest economic expansion in U.S. history.

Anticipation of next week's Federal Reserve meeting of policyholders helped lift the market Thursday, said Jeff Zipper, managing director at U.S. Bank Private Wealth Management.

"You've got two competing forces here right now," Zipper said. "The lingering issue of when is this trade tariff deal going to get resolved, and a more dovish Fed."

Last week, Fed Chair Jerome Powell set off a market rally after he signaled that the central bank is willing to cut interest rates to help stabilize the economy if the trade war between Washington and Beijing starts to crimp growth.

The S&P 500 index rose 11.80 points, or 0.4%, to 2,891.64. The benchmark index has been seesawing this week, opening strong on Monday, and then falling for two straight days before reversing course again on Thursday. The uneven week follows the index's best week of 2019.

The Dow Jones Industrial Average gained 101.94 points, or 0.4%, to 26,106.77. The Nasdaq composite added 44.41 points, or 0.6%, to 7,837.13. The Russell 2000 index of small company stocks climbed 16.01 points, or 1.1%, to 1,535.80.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.10% from 2.12% late Wednesday.

U.S. stock indexes rebounded early on Thursday as oil prices surged on news of a suspected attack on two oil tankers in the strategic Strait of Hormuz.

The incident in the Strait of Hormuz comes amid heightened tensions between the United States and Iran. One third of all oil traded by sea, which amounts to 20% of oil traded worldwide, passes through the strait. The U.S. blamed Iran in what it called a campaign of "escalating tensions" in a region crucial to global energy supplies.

Benchmark U.S. crude rose 2.2% to settle at $52.28 a barrel. Brent crude oil, the international standard, added 2.2% to close at $61.31 a barrel. The gains come at a time when oil prices have been falling on signs demand is declining.

Analysts questioned whether the gains can hold. Jim Ritterbusch of Ritterbusch & Associates said in a note to clients the jump is factoring in a worst case scenario and oil is "apt to relinquish the bulk of gains as additional details emerge."

In addition, OPEC added to the recent concerns among traders that global demand is slipping. In its latest monthly report on the oil market, OPEC forecast demand would grow by 1.4 million barrels a day in 2019, down by 700,000 barrels a day from its previous forecast. OPEC said it lowered the forecast due to "sluggish oil demand data" from Western countries during the first quarter. While global demand appears to be slipping, supplies remain high.

The surge in oil prices lifted shares of oil services companies and oil producers. Schlumberger gained 3.4%.

Walt Disney gained 4.4%, leading a mix of media and internet companies higher. Shares in Google parent Alphabet rose 1.1% and Facebook gained 1.4%.

Tapestry's 3.9% gain led a mix of consumer-oriented stocks higher, including Macy's, home improvement retailers Home Depot and Lowe's, and homebuilders. Those companies caught an extra boost from the latest mortgage rate figures, which remain near historic lows.

Mortgage buyer Freddie Mac says the average rate on the 30-year, fixed-rate mortgage held steady from last week at 3.82 percent, its lowest point since September 2017. Lennar and KB Home each rose 1.9%.

Solid earnings and forecasts helped lift several stocks.

Lululemon gained 2.1% after stretching beyond Wall Street's profit and revenue forecasts for the first quarter. The maker of athletic apparel popular with yoga practitioners also raised its profit forecast for the year.

Furniture and houseware retailer RH surged 15.8% after the company blew past Wall Street's first quarter profit forecasts and raised its own profit forecast for the year. The company said that it raised some prices to offset the impact of tariffs and plans on moving some production out of China.

Higher fares gave major airlines a boost. American Airlines confirmed that it raised domestic fares $5 each way. J.P. Morgan said Southwest Airlines followed by raising prices on tickets bought within a week of the flight and favored by business travelers. The hikes mark the second round of fare increases in just over a month.

American Airlines surged 6.4%, Delta gained 1.9% and Southwest rose 3.1%.

Health care stocks lagged the market.

In other energy futures trading, wholesale gasoline rose 2% to $1.72 per gallon. Heating oil gained 1.5% to $1.81 per gallon. Natural gas fell 2.6% to $2.33 per 1,000 cubic feet.

Gold rose 0.4% to $1,336.80 per ounce, silver inched 0.1% higher to $14.75 per ounce and copper fell 0.7% to $2.65 per pound.

The dollar fell to 108.34 Japanese yen from 108.48 yen on Wednesday. The euro weakened to $1.1279 from $1.1286.

 

[bigdog]

Stocks ended a choppy week of trading with modest losses Friday as investors look forward to getting more clues about the direction of interest rates.

Technology shares drove the declines, and energy stocks also fell a day after leading the market. Some late-day gains in banks and insurers helped temper the market's losses.

Investors dealt with fresh concerns about the impact on businesses of the U.S. trade dispute with China. The chipmaker Broadcom warned that demand for chips has slowed because of U.S. restrictions on sales to Chinese technology firms and hesitation among customers to place new orders. It shaved $2 billion from its annual revenue forecast.

Trading this week was uneven as investors swung between safe-play holdings and riskier bets. Stocks rose Monday but then seesawed as investors saw signs that the U.S. and China won't settle their differences on trade anytime soon. There is concern that a protracted dispute could further hurt global economic growth and corporate profits. A suspected attack on two oil tankers in the Strait of Hormuz added more uncertainty.

https://www.usnews.com/news/busines...s-mixed-over-concerns-about-oil-tankers-trade

Stocks Post Small Losses; Investors Look Ahead to Fed
Stocks ended a choppy week of trading with modest losses Friday as investors look forward to getting more clues about the direction of interest rates.
By Associated Press, Wire Service Content June 14, 2019, at 5:01 p.m.

By DAMIAN J. TROISE, AP Business Writer

NEW YORK (AP) — Stocks ended a choppy week of trading with modest losses Friday as investors look forward to getting more clues about the direction of interest rates.

Technology shares drove the declines, and energy stocks also fell a day after leading the market. Some late-day gains in banks and insurers helped temper the market's losses.

Investors dealt with fresh concerns about the impact on businesses of the U.S. trade dispute with China. The chipmaker Broadcom warned that demand for chips has slowed because of U.S. restrictions on sales to Chinese technology firms and hesitation among customers to place new orders. It shaved $2 billion from its annual revenue forecast.

Trading this week was uneven as investors swung between safe-play holdings and riskier bets. Stocks rose Monday but then seesawed as investors saw signs that the U.S. and China won't settle their differences on trade anytime soon. There is concern that a protracted dispute could further hurt global economic growth and corporate profits. A suspected attack on two oil tankers in the Strait of Hormuz added more uncertainty.

The S&P 500 index fell 4.66 points, or 0.2%, to 2,886.98 Friday and ended the week with a slim gain of 0.5%. The Dow Jones Industrial Average dropped 17.16 points, or 0.1%, to 26,089.61. The Nasdaq composite slid 40.47 points, or 0.5%, to 7,796.66. The Russell 2000 index of small company stocks dropped 13.30 points, or 0.9%, to 1,522.50.

The major indexes are still showing strong gains for June — the Dow is up 5.1% and the S&P 500 is up 4.9%. Last week, Federal Reserve Chair Jerome Powell set off a market rally after he signaled that the central bank is willing to cut interest rates to help stabilize the economy if the trade war between Washington and Beijing starts to slow economic growth.

The Fed holds its next meeting of policyholders next week. No action on rates is expected, but the futures market indicates that investors are almost certain the Fed will cut rates at its July meeting, so they'll carefully parse a statement from the central bank and comments from Powell on Wednesday.

Economists Ethan Harris and Aditya Bhave of Bank of America Merrill Lynch wrote in a note to clients that Fed officials probably haven't decided yet whether to cut rates in July and won't try to sway investors one way or another at next week's meeting. They say that Powell will have to "tap dance" during his press conference and expect him to "keep options open with the possibility of a cut in July but not a pre-commitment."

The economists expect Fed officials to wait until the second week of July to indicate whether they intend to cut rates, after seeing the next government report on the jobs market and other economic data. They'll also know the results of an important meeting of the G-20 in late June, where President Donald Trump and Chinese President Xi Jinping could meet and try to negotiate a deal on trade.

Harris and Bhave say the Fed is likely to cut rates in September.

Chipmakers were the big decliners on Friday. Broadcom, which gets about half its revenue from China, fell 5.6%. Texas Instruments also gets nearly half its revenue from China, according to markets research company FactSet, and it shed 3.5%.

Energy stocks fell, giving back some of the strong gains from Thursday. Oil rig operator Noble Energy dropped 5%.

Banks and insurers posted gains late in the day to boost the financial sector. Regional bank PNC rose 1.1% and Allstate gained 1%.

Facebook rose 2.2%. The social media company has reportedly enlisted some key backers for its upcoming cryptocurrency.

Utility stocks were among the biggest gainers. That's typically a sign that investors are worried about economic growth and shifting money into safer holdings. Consumer staples, also considered less risky, swayed between small gains and losses.

Friday closed out another good week for initial public offerings.

PetSmart removed the leash from its online pet products company Chewy, which surged 59% in its debut. The 8-year-old company garnered high demand. It priced at $22 per share and is now valued at $8 billion.

Other recent strong IPOs include cloud-computing security company CrowdStrike, which jumped about 70% on its first day of trading Wednesday. Plant-based meat alternative company Beyond Meat nearly tripled in value on its first day of trading in May and at Friday's close of $150.13 is six times higher than its initial offering price

Renaissance Capital, a provider of institutional research and IPO ETFs, has seen a 34% gain in its IPO ETF so far this year. That's outpacing the 15% gain in the broader S&P 500.

"That's an indicator that investors in these new companies are making money and are more inclined to go into new ones," said Kathleen Smith, principal at Renaissance Capital.

In other trading, benchmark crude oil rose 0.4% to settle at $52.51 a barrel. Brent crude oil, the international standard, added 1.1% to close at $62.01 a barrel. Wholesale gasoline rose 0.7% to $1.733 per gallon. Heating oil added 1.3% to $1.83 per gallon. Natural gas rose 2.7% to $2.387 per 1,000 cubic feet.

Gold edged up 0.1% to $1,344.50 per ounce, silver lost 0.6% to $14.80 per ounce and copper fell 1% to $2.63 per pound.

The dollar rose to 108.55 Japanese yen from 108.34 yen on Thursday. The euro weakened to $1.1207 from $1.1279.

743

 

[bigdog]

U.S. stocks posted slight gains on Wall Street on Monday, adding a bit to the last two weeks of gains.

However, trading remains choppy as uncertainty continued over several ongoing trade disputes and their possible effect on economic growth.

The Dow Jones industrial average edged up 22.92 points, or 0.1%, to 26,112.53. The S&P 500 index rose 2.69 points, or 0.1%, to 2,889.67 and the Nasdaq composite index rose 48.37 points, or 0.6%, to 7,845.02.

Financial companies were the biggest losers as bond yields slipped. The KBW Bank index, a measurement of the 24 biggest banks, fell 1.3%.

https://www.usnews.com/news/busines...es-mixed-as-investors-look-ahead-to-fed-rates

US Stocks Add to 2 Weeks of Gains, Helped by Deal-Making
US stocks add to 2 weeks of gains, helped by deal-making, but investors remain anxious about trade.
By Associated Press, Wire Service Content June 17, 2019, at 4:25 p.m.

By DAMIAN J. TROISE, AP Business Writer

NEW YORK (AP) — U.S. stocks posted slight gains on Wall Street on Monday, adding a bit to the last two weeks of gains.

However, trading remains choppy as uncertainty continued over several ongoing trade disputes and their possible effect on economic growth.

The Dow Jones industrial average edged up 22.92 points, or 0.1%, to 26,112.53. The S&P 500 index rose 2.69 points, or 0.1%, to 2,889.67 and the Nasdaq composite index rose 48.37 points, or 0.6%, to 7,845.02.

Financial companies were the biggest losers as bond yields slipped. The KBW Bank index, a measurement of the 24 biggest banks, fell 1.3%.

The muted gains mirror last week's pattern of choppy day-to-day trading as investors search for direction ahead of an interest rate decision by the Federal Reserve on Wednesday.

Investors focused on a round of deal-making, while continuing to pay close attention to the ongoing trade dispute between the U.S. and China.

The current impact from the spat between the U.S. and China isn't enough to cause a recession, but a further escalation of tensions could become a trigger, according to Jason Pride, chief investment officer of private wealth for Glenmede.

"I think that's why investors are so focused on this trade issue," he said. "In a worst case scenario, we're talking about a 1.5% GDP impact."

The worst-case scenario would involve additional tariffs on Chinese goods along with other global tariffs, including the currently postponed actions against Mexico.

The S&P 500 eked out a modest gain of 0.5% last week. Investors have been swinging between risky and safe-play holdings on a lack of developments in the ongoing trade war between the U.S. and China. Jitters over trade disputes and their impact on global economic growth have created a volatile market.

Array BioPharma surged 57% after announcing that it had agreed to be bought by pharmaceutical giant Pfizer for $11.4 billion.

Array currently makes an advanced skin cancer treatment and has a deep pipeline of cancer drugs in development. Pfizer makes a wide range of cancer and other drugs. It is the biggest U.S. drugmaker by revenue. Pfizer rose 0.3% to $42.87 a share.

New York auction house Sotheby's surged 58.6% after announcing its sale to Patrick Drahi, a media and telecom entrepreneur and art collector.

Other companies were also moving after announcing deals.

Oilfield services company C&J Energy Services surged 20% after announcing it is being bought by rival Keane Group in an all-stock deal. LegacyTexas Financial Group rose roughly 2% after it announced a $2.1 billion cash and stock sale to regional bank Prosperity Bancshares.

Align Technology fell more than 6% after the medical device maker ended discussions about a potential distribution deal with Straumann Group. The company focuses on products for the dental industry. The deal was initially part of a patent dispute settlement with a unit of Straumann. Instead, Align will receive a $16 million payment.

In other trading, benchmark crude oil fell 1.1% to settle at $51.93 a barrel. Brent crude oil, the international standard, dropped 1.7% to close at $60.94 a barrel. Wholesale gasoline fell 2.4% to $1.69 per gallon. Heating oil was down 1.6% to $1.80 per gallon. Natural gas was mostly unchanged at $2.39 per 1,000 cubic feet.

Gold edged down 0.1% to $1,342.90 per ounce, silver rose 0.2% to $14.83 per ounce and copper rose 0.6% to $2.65 per pound.

The dollar rose to 108.57 Japanese yen from 108.55 yen on Friday. The euro weakened to $1.1216 from $1.1207.

 

[bigdog]

Potentially encouraging news on trade and interest rates put Wall Street in a buying mood Tuesday, driving the market to solid gains and sending the Dow Jones Industrial Average 350 points higher.

Technology stocks powered much of the rally as investors welcomed news that the leaders of the U.S. and China will meet face-to-face next week to discuss their long-running trade dispute. Traders have been hoping for any positive sign in the trade war between the world's largest economies.

It's not the first time the market has rallied on seemingly encouraging developments on trade. Previous positive signs did not pan out, triggering market turbulence.

https://www.usnews.com/news/busines...s-mixed-ahead-of-central-banks-rate-decisions

Optimism Over Trade Sends US Stocks Sharply Higher
Potentially encouraging news on trade and interest rates put Wall Street in a buying mood Tuesday, driving the market to solid gains and sending the Dow Jones Industrial Average more than 350 points higher.
By Associated Press, Wire Service Content June 18, 2019, at 4:48 p.m.

By DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers

Potentially encouraging news on trade and interest rates put Wall Street in a buying mood Tuesday, driving the market to solid gains and sending the Dow Jones Industrial Average 350 points higher.

Technology stocks powered much of the rally as investors welcomed news that the leaders of the U.S. and China will meet face-to-face next week to discuss their long-running trade dispute. Traders have been hoping for any positive sign in the trade war between the world's largest economies.

It's not the first time the market has rallied on seemingly encouraging developments on trade. Previous positive signs did not pan out, triggering market turbulence.

"You sort of have to ignore it a little bit," said Tobias Carlisle, founder and portfolio manager at Acquirers Funds. "It's probably going to drag out to the end of the year, so what we're trying to do is buy something undervalued, and it's great when there's a day like today and it works."

Markets also got a boost after the head of the European Central Bank said it was ready to cut interest rates and provide additional economic stimulus if necessary. The remarks put the spotlight on the Federal Reserve, which is set to announce its own decision on interest rates Wednesday.

The S&P 500 index climbed 28.08 points, or 1% to 2,917.75. The Dow gained 353.01 points, or 1.4%, to 26,465.54. The Nasdaq, which is heavily weighted with technology companies, jumped 108.86 points, or 1.4%, to 7,953.88.

The Russell 2000 index of smaller companies added 17.48 points, or 1.1%, to 1,550.23.

It was the second straight gain for the market, extending a strong rebound for stocks in June after a steep sell-off last month.

The benchmark S&P 500 is now less than 1% below its all-time high set on April 30. The Dow is 1.4% below its record high set October 3. The Nasdaq is about 2.5% below its record close set on May 3.

The wave of buying got its start overseas early Tuesday after the remarks from the head of the ECB. Major indexes in Europe closed sharply higher.

President Donald Trump stirred fresh optimism among investors when he said he will hold talks with Chinese President Xi Jinping at an international summit in Japan. U.S. businesses have implored Trump to stop escalating the trade war and refrain from expanding his tariffs to $300 billion on goods from China.

A prospective meeting between the U.S. and China's leaders is welcome news for a market that has been searching for some direction. "If you think back a week ago, there was a fear they wouldn't even talk at all," said J.J. Kinahan, chief market strategist at TD Ameritrade.

Investors were also looking ahead to the Federal Reserve's next interest rate policy announcement Wednesday, with many betting the central bank is headed for its first interest rate cut in over a decade.

Two weeks ago, Fed Chair Jerome Powell set off a rally on Wall Street after he signaled that the central bank is willing to cut interest rates to help stabilize the economy if the trade war between Washington and Beijing starts to crimp growth. Any continued escalations could put the brakes on what is poised to be the longest economic expansion in U.S. history.

Most analysts say they think economic growth has slowed sharply in the April-June quarter to around a 1.5% percent annual rate, only half the pace of the past year.

Investors collectively envision a Fed rate cut by July and possibly further cuts after that. Some are even betting on a rate cut this week. Many economists, though, think the Fed will wait until September at the earliest to announce its first drop in its benchmark short-term interest rate since 2008 and might not cut again in 2019. A few Fed watchers foresee no rate cut at all this year.

"I don't know that the Fed is going to deliver what investors want because the market looks fairly frothy at the moment," Carlisle said.

Technology sector stocks powered much of the rally Tuesday. Apple gained 2.4% and chipmakers Intel and Nvidia rose 2.7% and 5.4%, respectively. Google's parent company, Alphabet added 1%.

Banks rose. JPMorgan Chase picked up 1.4% and Bank of America rose 2.5%.

Industrial and consumer-related stocks also made big gains. General Electric climbed 3.7%, Caterpillar rose 2.4%, and Nike added 2.7%.

Utilities and consumer products companies ended lower, a sign that investors were stepping back from the safe-play sectors and taking on more risk.

SM Energy climbed 6.6% after the oil and natural gas company raised production forecasts for the second quarter and full year.

U.S. government bond prices rose, sending yields lower. The yield on the 10-year Treasury note fell to 2.06%, below the 2.08% it traded at late Monday. That's still well below the 2.21% yield on the three-month Treasury bill.

Benchmark crude oil rose 3.8% to settle at $53.90 a barrel. Brent crude oil, the international standard, rose 2% to close at $62.14 a barrel. Wholesale gasoline rose 1.8% to $1.72 per gallon. Heating oil climbed 1.6% to $1.83 per gallon. Natural gas fell 2.4% to $2.33 per 1,000 cubic feet.

Gold edged down 0.6% to $1,350.70 per ounce, silver rose 1.1% to $14.99 per ounce and copper rose 2.1% to $2.70 per pound.

The dollar fell to 108.44 Japanese yen from 108.57 yen on Friday. The euro weakened to $1.1196 from $1.1216.

 

[bigdog]

ASX now just 3% below all-time highs
The market latched onto an improving dialogue between the US & China overnight ahead of the G20 meeting in Japan next week – President Trump saying that he had talked to President Xi Jinping confirming the leaders would meet at the G20 + they would send their respective teams to begin discussions beforehand.
This is obviously another positive development for the market and when combined with the expectations of lower interest rates, it’s easy to comprehend markets testing all-time highs – now just ~200 points away.

Stocks brushed off a muted start on Wall Street and notched modest gains Wednesday after the Federal Reserve reaffirmed that it is prepared to cut interest rates if needed to shield the U.S. economy from trade conflicts or other threats.

In a widely expected move, the central bank's policymakers decided to leave the Fed's benchmark interest rate unchanged. Still, by signaling the possibility of lower rates, the Fed reassured investors who have been worried that the trade war between Washington and Beijing could weigh on global economic growth, and by extension, corporate profits.

The reaction to the Fed's midafternoon statement was more pronounced in the bond market, where the yield on the 10-year Treasury note slid to 2.03%, its lowest level since November 2016. The move signals that bond traders see an increased likelihood that the Fed will lower rates. Investors are betting on at least one interest rate cut this year, possibly as early as July.

https://www.usnews.com/news/busines...-on-trade-optimism-as-trump-hints-of-xi-talks

US Stocks Rise After Fed Signals Future Rate Cuts
Stocks brushed off a muted start on Wall Street and notched modest gains Wednesday after the Federal Reserve reaffirmed that it is prepared to cut interest rates if needed to shield the U.S. economy from trade conflicts or other threats.
By Associated Press, Wire Service Content June 19, 2019, at 4:49 p.m.

By DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers

Stocks brushed off a muted start on Wall Street and notched modest gains Wednesday after the Federal Reserve reaffirmed that it is prepared to cut interest rates if needed to shield the U.S. economy from trade conflicts or other threats.

In a widely expected move, the central bank's policymakers decided to leave the Fed's benchmark interest rate unchanged. Still, by signaling the possibility of lower rates, the Fed reassured investors who have been worried that the trade war between Washington and Beijing could weigh on global economic growth, and by extension, corporate profits.

The reaction to the Fed's midafternoon statement was more pronounced in the bond market, where the yield on the 10-year Treasury note slid to 2.03%, its lowest level since November 2016. The move signals that bond traders see an increased likelihood that the Fed will lower rates. Investors are betting on at least one interest rate cut this year, possibly as early as July.

"The story of the last six months is equities are comforted when they believe that the Fed is going to be supportive and going to provide offsets to some of the policy uncertainties that are out there," said Willie Delwiche, investment strategist at Baird.

The latest gain extended the market's winning streak to a third day, adding to a June rebound in stocks after a dismal sell-off in May.

The S&P 500 rose 8.71 points, or 0.3%, to 2,926.46. The broad market index is within striking range of its all-time high, set on April 30.

The Dow Jones Industrial Average gained 38.46 points, or 0.1%, to 26,504. The Nasdaq composite added 33.44 points, or 0.4%, to 7,987.32. The Russell 2000 index of smaller companies picked up 5.35 points, or 0.3%, to 1,555.58.

Major stock indexes in Europe finished mixed.

U.S. stock indexes spent much of the day wavering between small gains and losses as investors waited for the Fed to deliver its update on interest rates following a two-day meeting of policymakers.

The Fed left its key interest rate, which influences many consumer and business loans, unchanged Wednesday in a range of 2.25% to 2.5%. That's where it's been since December.

The central bank also said that because "uncertainties" have increased, it would "act as appropriate to sustain the expansion." That language echoed a remark that Chairman Jerome Powell made two weeks ago that many investors interpreted as a signal that rate cuts were on the way, triggering a rally on Wall Street.

The Fed also removed a reference to being "patient" about adjusting rates. That suggests that the central bank is now inclined to begin cutting rates for the first time in more than a decade to help stabilize the economy.

"They don't want to overreact to one data point here or one data point there," Delwiche said. "They're trying to establish what is the trend in the economy and the degree to which economic conditions have actually deteriorated before making a move."

Most analysts say they think economic growth has slowed sharply in the April-June quarter to around a 1.5% percent annual rate, only half the pace of the past year.

The Fed's statement came a day after the head of the European Central Bank said it was ready to cut interest rates and provide additional economic stimulus if necessary.

The biggest issue looming over the market remains the U.S. trade war with China. Stocks opened the week higher and rallied on Tuesday after President Donald Trump said he plans to meet with China's president at the end of the month to discuss their ongoing trade war. The announcement injected some hope into a market that has been volatile because of concerns over the lingering trade dispute and its potential impact on economic growth.

The market has rallied in the past and then dipped again because of seemingly good news on trade talks that did not result in any concrete progress.

Health care stocks drove much of the market's gains Wednesday. Allergan climbed 6.2% and UnitedHealth Group rose 1.8%.

Technology stocks rose, with software maker Adobe leading the way with a 5.2% gain on solid profit results. Household goods makers also notched gains. Kraft Heinz added 2.3%.

Utilities, which tend to rise when bond yields decline, also rose. Edison International gained 2.8%.

Financial companies, including banks, were the biggest laggards. The sector is sensitive to the moves in the bond market. Lower bond yields pull down the interest rates that banks charge on loans. Synchrony Financial dropped 1.7%.

The 10-year Treasury yield has been declining steadily since hitting a high of 3.23% last November. It fell to 2.03% Wednesday, down from 2.06% late Tuesday.

Benchmark crude oil fell 0.3% to settle at $53.76 a barrel. Brent crude oil, the international standard, fell 0.5% to close at $61.82 a barrel. Wholesale gasoline rose 0.8% to $1.74 per gallon. Heating oil climbed 0.1% to $1.83 per gallon. Natural gas fell 2.2% to $2.28 per 1,000 cubic feet.

Gold edged down 0.1% to $1,348.80 per ounce, silver fell 0.2% to $14.96 per ounce and copper fell 0.8% to $2.68 per pound.

The dollar fell to 107.97 Japanese yen from 108.44 yen on Friday. The euro rose to $1.1245 from $1.1196.

 

[bigdog]

Wall Street capped a broad rally for stocks Thursday by driving the S&P 500 index to an all-time high.

The milestone, which eclipsed the benchmark index's last record close on April 30, underscores a swift rebound for the market in June that has erased the losses from a 6.6% dive in May. The major U.S. stock indexes are up more than 7% so far this month.

Thursday's rally came as investors balanced optimism over the possibility that the Federal Reserve will cut interest rates in response to a slowing global economy with jitters about the prospects of dimmer corporate profits should a severe slowdown take hold.

https://www.usnews.com/news/busines...ares-gain-shanghai-up-26-on-fed-rate-cut-talk

S&P 500 Index Closes at Record High as Stock Rally Continues
Wall Street capped a broad rally for stocks by driving the S&P 500 index to an all-time high.
By Associated Press, Wire Service Content June 20, 2019, at 5:02 p.m.

By ALEX VEIGA, AP Business Writer

Wall Street capped a broad rally for stocks Thursday by driving the S&P 500 index to an all-time high.

The milestone, which eclipsed the benchmark index's last record close on April 30, underscores a swift rebound for the market in June that has erased the losses from a 6.6% dive in May. The major U.S. stock indexes are up more than 7% so far this month.

Thursday's rally came as investors balanced optimism over the possibility that the Federal Reserve will cut interest rates in response to a slowing global economy with jitters about the prospects of dimmer corporate profits should a severe slowdown take hold.

Those worries prompted traders to shift money into safe-haven assets this week, such as gold and U.S. government bonds. The yield on the 10-year Treasury briefly slid Thursday as low as 1.97% after falling a day earlier to 2.02%. The yield, which is used to set interest rates on mortgages and other loans, is the lowest it's been since November 2016.

The price of gold, meanwhile, jumped 3.6%.

"If the Fed is going to cut rates it means that the economic environment is slowing down," said Lindsey Bell, investment strategist at CFRA. "You have investors looking to bonds to hide out in. You're also seeing a big move up in gold on the back of the Fed's decision as well."

Investors' jitters over escalating tensions between the U.S. and Iran sent the price of U.S. crude oil 5.4% higher. Crude prices had been in a bear market just weeks ago, what Wall Street calls a drop of 20% or more.

The S&P 500 climbed 27.72 points, or 0.9%, to 1,954.18, a record high.

The Dow Jones Industrial Average rose 249.17 points, or 0.9%, to 26,753.17. The Nasdaq gained 64.02 points, or 0.8%, to 8,051.34. The Russell 2000 index of smaller companies picked up 7.92 points, or 0.5%, to 1,563.49.

Major stock indexes in Europe also finished higher.

Despite uncertainty over the global economy, the lingering U.S. trade war with China and the prospect of geopolitical conflict with Iran, stock investors have been in a buying mood this month. That's been a marked reversal from May, when jitters over the escalating trade conflict between Washington and Beijing derailed the market's strong start to the year.

The market's recovery gained momentum this week after the central bank said on Wednesday that it stands ready to cut interest rates. Traders also grew more hopeful that trade talks between the U.S. and China may make progress this month.

The top U.S. trade negotiator is scheduled to meet with his Chinese counterpart to discuss a trade dispute between the world's two biggest economies before a summit next week in Japan between Presidents Donald Trump and Xi Jinping of China. The market has rallied in the past and then dipped again because of seemingly good news on trade talks that did not result in any concrete progress.

Technology stocks accounted for a big share of Thursday's gains. Oracle led the sector, and all stocks in the S&P 500, jumping 8.2% after the software company reported solid financial results.

Industrial companies also notched solid gains. United Rentals climbed 3.4%.

The spike in oil prices sent energy sector stocks broadly higher. Noble Energy gained 6.2%.

Benchmark crude oil rose 5.4% to settle at $56.65 a barrel. Brent crude oil, the international standard, rose 4.3% to close at $64.45 a barrel.

Crude prices surged as tensions between the U.S. and Iran intensified, stoking fears that oil shipments through the Strait of Hormuz could be compromised. Iran's Revolutionary Guard said it shot down a U.S. drone on Thursday over Iranian airspace. The drone shooting follows last week's attack on two oil tankers near the Gulf of Oman.

Bond yields continued to slide a day after the Federal Reserve signaled that it is prepared to cut its benchmark interest rate if needed to shield the U.S. economy from trade conflicts or other threats. While the central bank left interest rates unchanged, investors are betting on at least one interest rate cut this year.

After sliding for much of the day, the yield on the 10-year Treasury note inched up to 2.03% from 2.02% late Wednesday.

"That's kind of confirming investors' nervousness and search for safety," Bell said. "At the same time, you have the stock market rallying because history has shown once the Fed starts cutting rates, six to 12 months after that you do get a rally in the equity market."

Another factor driving demand for U.S. Treasurys is that government bonds in Germany and other countries are returning negative yields, making U.S. bonds more attractive.

Shares in work messaging platform Slack surged in their stock market debut. The company's shares opened trading at $38.25 and closed 48.5% higher. Ride-hailing companies Uber and Lyft, video conferencing company Zoom Video Communications and digital scrapbooking site Pinterest have all gone public in recent weeks.

In other commodities trading, wholesale gasoline rose 2.9% to $1.79 per gallon. Heating oil climbed 3% to $1.88 per gallon. Natural gas fell 4% to $2.19 per 1,000 cubic feet.

Gold rose 3.6% to $1,396.90 per ounce, silver also rose 3.6% to $15.49 per ounce and copper rose 1.2% to $2.71 per pound.

The dollar fell to 107.27 Japanese yen from 107.97 yen on Wednesday. The euro rose to $1.1295 from $1.1245.

 

[bigdog]

Wall Street finished a milestone-setting week on a downbeat note Friday after a late flurry of selling nudged stocks lower, ending the market’s four-day winning streak.

Even with the modest losses the market delivered its third straight weekly gain, with the benchmark S&P 500 index hovering just below its record high close from a day earlier.

That milestone, which eclipsed the benchmark index’s last record close on April 30, came amid a swift turnaround for stocks this month that has erased the losses from a steep sell-off in May. The major U.S. stock indexes are up more than 7% so far this month and are holding on to gains of more than 14% for the year.

https://www.apnews.com/64814634ca2f4872b958ad650a39d0bc

S&P 500 notches 3rd straight weekly gain after wobbly day
By ALEX VEIGA

Wall Street finished a milestone-setting week on a downbeat note Friday after a late flurry of selling nudged stocks lower, ending the market’s four-day winning streak.

Even with the modest losses the market delivered its third straight weekly gain, with the benchmark S&P 500 index hovering just below its record high close from a day earlier.

That milestone, which eclipsed the benchmark index’s last record close on April 30, came amid a swift turnaround for stocks this month that has erased the losses from a steep sell-off in May. The major U.S. stock indexes are up more than 7% so far this month and are holding on to gains of more than 14% for the year.

Investors have been reassured by statements from the Federal Reserve this month that suggest the central bank is prepared to cut interest rates in response to a slowing global economy. At the same time, traders remain concerned that corporate profits might suffer should the kind of economic slowdown that would prompt the Fed to cut rates take hold.

A mixed batch of economic data on Friday didn’t have much of an impact on trading, which remained mostly muted as investors took a breather after a four-day rally.

“Some of the information we’ve gotten today hasn’t been all that impactful to kind of change the price action we saw this week,” said Ioana Martin, global investment specialist at J.P. Morgan Private Bank.

The S&P 500 index dipped 3.72 points, or 0.1%, to 2,950.46. The Dow Jones Industrial Average dropped 34.04 points, or 0.1%, to 26,719.13. The Nasdaq composite fell 19.63 points, or 0.2%, to 8,031.71.

Smaller company stocks fared worse than the rest of the market. The Russell 2000 index slumped 13.87 points, or 0.9%, to 1,549.63.

Major indexes in Europe fell.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.06% from 2% on Thursday.

Trading was wobbly for much of Friday as investors sized up a mixed batch of economic data. A report on manufacturing for June came in below analysts’ forecasts. A separate report was more encouraging, indicating that sales of previously occupied U.S. homes increased in May.

The modest dip cut into some of the market’s gains from Thursday, but did little to dent the Wall Street’s June rally.

All told, the S&P 500 is up 17.7% this year, while the Dow is up 14.5%. The Nasdaq, which his heavily weighted with technology stocks, is up 21.1% for the year. The Russell 2000 is up 14.9%.

The biggest uncertainty looming over the market remains the U.S. trade war with China. Stocks opened the week higher and rallied since then after President Donald Trump said he planned to meet with China’s president next week at the G20 summit in Japan to discuss their ongoing trade conflict.

Both nations’ leaders have lately signaled a willingness to resolve the dispute and are meeting next week for talks.

Meanwhile, the Federal Reserve has signaled that it is willing to cut interest rates to stabilize the U.S. economy if the trade dispute crimps growth. That’s helped drive the market’s rebound in June.

“At this point it’s not so much a question about whether the Fed is going to be accommodative or not, it’s just what that magnitude is going to be,” Martin said.

Looking ahead, next week’s G20 summit is likely to be the next big market mover, Martin said.

“That hopefully gives us a little bit more color on the trade situation,” she said.

Technology stocks took some of the heaviest losses Friday, with chipmakers leading the way. Micron Technology dropped 2.6% and Advanced Micro Devices lost 3%.

Industrial stocks also fell. Snap-on dropped 3.7%.

Health care stocks notched solid gains. Humana climbed 4.4%, while UnitedHealth Group added 1.8%.

Communications stocks also rose, with video game publisher Electronic Arts leading the way. The stock gained 2.3%.

Energy stocks climbed for the second day in a row along with the price of crude oil. Baker Hughes gained 3.3% and Valero Energy added 2.7%.

Benchmark crude oil rose 0.6% to settle at $57.43 a barrel. It ended with a 9.2% gain for the week. That’s the biggest weekly gain in more than two years. Only a few weeks ago, the price of U.S. crude was in a correction, what Wall Street calls a drop of at least 20% from a recent peak.

Brent crude oil, the international standard, rose 1.2% to close at $65.20 a barrel.

Used car retailer CarMax rose 3.2% after it blew past Wall Street’s fiscal first quarter profit and revenue forecasts.

Staffing company Korn Ferry plunged 17.5% after reporting weak revenue during its fiscal fourth quarter and issuing a profit forecast that mostly fell short of analysts’ expectations.

In other commodities trading, wholesale gasoline rose 3.9% to $1.86 per gallon. Heating oil climbed 1.7% to $1.92 per gallon. Natural gas was little changed at $2.19 per 1,000 cubic feet.

Gold edged up 0.2% to $1,400.10 per ounce, silver fell 1.3% to $15.29 per ounce and copper fell 0.3% to $2.70 per pound.

The dollar rose to 107.41 Japanese yen from 107.27 yen on Thursday. The euro rose to $1.1369 from $1.1295.

251

 

[bigdog]

The U.S. stock market capped a day of listless trading with modest losses Monday as investors focused on upcoming trade talks between the U.S. and China.

The major stock indexes drifted between small gains and losses for much of the day, though smaller company stocks had their worst day since May. The losses erased some of the market's solid gains from last week, when the benchmark S&P 500 index closed at an all-time high.

The muted trading came as investors looked ahead to a highly anticipated meeting between the leadership of the U.S. and China later this week. The world's two largest economies have been embroiled in a trade war that has taken the market on a volatile roller-coaster ride this year and Wall Street is hoping for a deal.

https://www.usnews.com/news/busines...es-waver-ahead-of-trump-xi-meet-at-osaka-g-20

US Stock Indexes Finish Mixed Ahead of Trade Talks
The U.S. stock market capped a day of listless trading with modest losses Monday as investors focused on upcoming trade talks between the U.S. and China.
By Associated Press, Wire Service Content June 24, 2019, at 4:55 p.m.

By ALEX VEIGA, AP Business Writer

The U.S. stock market capped a day of listless trading with modest losses Monday as investors focused on upcoming trade talks between the U.S. and China.

The major stock indexes drifted between small gains and losses for much of the day, though smaller company stocks had their worst day since May. The losses erased some of the market's solid gains from last week, when the benchmark S&P 500 index closed at an all-time high.

The muted trading came as investors looked ahead to a highly anticipated meeting between the leadership of the U.S. and China later this week. The world's two largest economies have been embroiled in a trade war that has taken the market on a volatile roller-coaster ride this year and Wall Street is hoping for a deal.

"The market right now seems to be pricing in some combination of at least a de-escalation between the U.S. and China from a trade standpoint to the point where it doesn't drive us into a recession," said Michael Crook, head of Americas investment strategy at UBS Global Wealth Management.

The S&P 500 index slipped 5.11 points, or 0.2%, to 2,945.35. The index is about 0.3% below the record high it set on Thursday.

The Dow Jones Industrial Average rose 8.41 points, or less than 0.1%, to 26,727.54. The Nasdaq composite dropped 26.01 points, or 0.3%, to 8,005.70. The Russell 2000 index of smaller companies slid 19.54 points, or 1.3%, to 1,530.08, its biggest single-day loss since May 31.

Major indexes in Europe finished mostly lower.

The market notched its third straight weekly gain last week and is on track for a strong monthly rebound from a steep sell-off in May. The major U.S. stock indexes are up more than 7% so far this month and are holding on to gains of more than 14% for the year.

Investors have been reassured by statements from the Federal Reserve this month that suggest the central bank is prepared to cut interest rates in response to a slowing global economy. Even so, traders remain concerned that corporate profits might suffer should the kind of economic slowdown that would prompt the Fed to cut rates take hold.

Trade policy remains the biggest source of uncertainty looming over the market. Worries about the dispute and its potential impact on global economic growth sent the broader market on a bumpy ride during the second quarter as the tensions escalated.

Presidents Donald Trump and Xi Jinping plan to meet at the Group of 20 summit in Japan, which starts Friday. Wall Street is once again hoping that the two sides can find a path to making a deal that will end their trade war.

The two sides are in a stalemate after 11 rounds of talks that have failed to overcome U.S. concerns over China's acquisition of American technology and its massive trade surplus. China denies forcing U.S. companies to hand over trade secrets and says the surplus is much smaller than it appears.

Health care stocks accounted for a big share of the selling Monday, led by a slide in shares of pharmaceutical giant Bristol-Myers Squibb.

The stock fell after the company said it would divest its blockbuster psoriasis treatment Otezla as part of a push to win regulatory approval for its $74 billion buyout of Celgene. Shares in Bristol-Myers were the biggest decliner in the S&P 500, losing 7.4%. Celgene dropped 5.4%.

Consumer discretionary stocks and banks also helped pull the market lower. Ulta Beauty dropped 2.6% and Capital One Financial dropped 3.1%.

Energy stocks also declined. The sector remains volatile as oil prices fluctuate over concerns about economic growth and rising tensions in the Middle East. Concho Resources fell 3.4%.

Technology companies, consumer goods makers and materials stocks were among the gainers. Western Digital rose 2.5%, Tyson Foods added 1.9% and Newmont Goldcorp gained 2.5%.

Bond prices rose, sending yields lower, as investors continued to shift money into U.S. bonds as a hedge against a possible downturn in the economy or further escalation in trade tensions. The yield on the 10-year Treasury note fell to 2.02% from 2.06% late Friday.

"The pricing in the bond market right now does indicate that it wouldn't take much to create a recession if we had some bad policy mistake either from the Fed or from a trade standpoint," Crook said.

Traders welcomed news that Eldorado Resorts has agreed to buy casino operator Caesars Entertainment in a cash-and-stock deal valued at $17.3 billion.

The deal creates a casino giant with about 60 casinos and resorts in 16 states under a single name. Caesars has been struggling since emerging from bankruptcy in 2017. Billionaire investor Carl Icahn took an enormous stake in the company and pushed for big changes. Caesars surged 14.5% and Eldorado fell 10.6%.

Energy futures finished mixed. Benchmark crude oil rose 47 cents to settle at $57.90 a barrel. Brent crude oil, the international standard, fell 34 cents to close at $64.86 a barrel. Wholesale gasoline fell 1 cent to $1.85 per gallon. Heating oil declined 1 cent to $1.91 per gallon. Natural gas rose 12 cents to $2.30 per 1,000 cubic feet.

Gold rose $18.20 to $1,414.30 per ounce, silver rose 10 cents to $15.37 per ounce and copper was unchanged at $2.71 per pound.

The dollar fell to 107.32 Japanese yen from 107.41 yen on Friday. The euro strengthened to $1.1401 from $1.369.

 

[bigdog]

Technology and internet companies led a broad slide for U.S. stocks Tuesday after discouraging economic data and cautionary remarks from the head of the Federal Reserve weighed on the market.

The sell-off marked the third straight loss for the market and the biggest drop this month for the Dow Jones Industrial Average and the S&P 500 index, which hit an all-time high only last week.

In an early afternoon speech, Fed Chairman Jerome Powell noted that the economic outlook has become cloudier since early May amid uncertainty over trade and global growth. Earlier Tuesday, reports showed a decline in consumer confidence and more weakness in the housing market.

https://www.usnews.com/news/busines...ower-ahead-of-trump-xi-meeting-at-g-20-summit

Stocks Move Lower on Economic Data, Powell Remarks
Technology and internet companies led a broad slide for U.S. stocks Tuesday after discouraging economic data and cautionary remarks from the head of the Federal Reserve weighed on the market.
By Associated Press, Wire Service Content June 25, 2019, at 5:11 p.m.

By ALEX VEIGA, AP Business Writer

Technology and internet companies led a broad slide for U.S. stocks Tuesday after discouraging economic data and cautionary remarks from the head of the Federal Reserve weighed on the market.

The sell-off marked the third straight loss for the market and the biggest drop this month for the Dow Jones Industrial Average and the S&P 500 index, which hit an all-time high only last week.

In an early afternoon speech, Fed Chairman Jerome Powell noted that the economic outlook has become cloudier since early May amid uncertainty over trade and global growth. Earlier Tuesday, reports showed a decline in consumer confidence and more weakness in the housing market.

Powell said the Fed is reassessing its interest rate policy, though he did not commit to a rate cut. Separate comments from James Bullard, president of the Fed's St. Louis regional bank, may have put a damper on the market's expectations for big rate cut.

In an interview with Bloomberg Television, Bullard said a half-point rate cut — which many investors have been expecting — would be "overdone," adding that a quarter-point cut would suffice to shield the economy from a slowdown.

"The risk is to the downside if they don't cut (rates) when the markets are fully expecting it," said Randy Frederick, vice president of trading & derivatives at Charles Schwab.

The S&P 500 index fell 27.97 points, or 1%, to 2,917.38. The Dow dropped 179.32 points, or 0.7%, to 26,548.22. The Nasdaq composite, which is heavily weighted with technology stocks, slid 120.98 points, or 1.5%, to 7,884.72.

The Russell 2000 index of smaller company stocks gave up 9.05 points, or 0.6%, to 1,521.04.

The market is coming off its third straight weekly gain. The benchmark S&P 500 index is about 1.3% below the record high it set on Thursday.

Prior statements from Fed officials have raised investors' expectations that the central bank will cut rates as early as next month in response to a slowing global economy. That expectation sparked a rally in the first three weeks of June that wiped out the market's losses from a steep sell-off in May.

But traders have grown cautious this week. Trade policy remains the biggest source of uncertainty looming over the market. Investors are worried about the trade dispute between the U.S. and China and its potential impact on global economic growth and corporate profits.

Presidents Donald Trump and Xi Jinping will meet this week at the Group of 20 meeting of major economies in Japan. The world's two largest economies spent much of the current quarter escalating their trade war and giving Wall Street jitters over prospects for economic growth.

"You could almost tie every piece of weakening economic data, whether it's domestic or global, back either directly or indirectly to this trade issue," Frederick said. "What the whole global economy needs is some certainty on trade, but what we're doing is we're trying to treat it by cutting interest rates."

Investors are also looking ahead to next month, when many investors expect the Fed to cut rates.

On Tuesday, Powell reiterated that the central bank is ready to "act as appropriate" to keep the economy growing, though the remarks failed to give the market a boost.

"The expectations pretty quickly over the last few months went from looking at probably another rate hike to expecting actually a cut," said Craig Birk, chief investment officer at Personal Capital. "Powell and the Fed are trying to communicate that they do want to remain data-driven and that nothing's certain yet."

Fed actions aside, traders remain concerned that corporate profits might suffer should the kind of economic slowdown that would prompt the Fed to cut rates take hold.

On Tuesday, the Conference Board said that U.S. consumer confidence dropped to its lowest level in more than 18 months. Two other reports showed home price gains slowed for the 13th straight month in April and sales of new U.S. homes slumped in May.

Homebuilders fell broadly as investors weighed the latest housing data. Lennar led the pack, after the builder said a conference call with analysts that tariffs on Chinese goods were adding an average of $500 to the cost of each new home. The stock dropped 6.2%.

Among other homebuilders, PulteGroup fell 2.4% and D.R. Horton dropped 3.9%.

Technology and internet stocks led the losses Tuesday. Microsoft fell 3.2% and Facebook fell 2%. FedEx dropped 3.1% and weighed down industrial stocks.

Bond prices rose, sending yields lower, as investors shifted money into U.S. bonds as a hedge against a possible downturn in the economy or further escalation in trade tensions. The yield on the 10-year Treasury note fell to 1.99% from 2.02% late Monday.

Banks and other financial companies declined as yields fell. Lower bond yields hurt a bank's ability to charge higher interest on loans. Citigroup slid 1.3%.

A surge in the share price of Botox maker Allergan helped stem the losses in health care stocks. The company vaulted 25.4% on news that it is being bought by drug developer AbbVie for around $63 billion. AbbVie slumped 16.3%.

Major stock indexes in Europe finished mostly lower Tuesday.

Energy futures closed mostly higher. Benchmark crude oil fell 7 cents to settle at $57.83 a barrel. Brent crude oil, the international standard, rose 19 cents to close at $65.05 a barrel. Wholesale gasoline rose 2 cents to $1.87 per gallon. Heating oil climbed 1 cent to $1.92 per gallon. Natural gas rose 1 cent to $2.31 per 1,000 cubic feet.

Gold rose 60 cents to $1,414.90 per ounce, silver rose 92 cents to $15.29 per ounce and copper rose 3 cents to $2.74 per pound.

The dollar fell to 107.12 Japanese yen from 107.32 yen on Monday. The euro weakened to $1.1373 from $1.1401.