NYSE Dow Jones finished today at:

[bigdog]

Stocks steadily gained ground Wednesday and closed broadly higher on Wall Street as investors rewarded solid earnings results from several large companies.

The S&P 500 got off to a weak start but gained steam and closed at a record high. Smaller stocks far outpaced larger ones and gave the Russell 2000 the biggest gain among major indexes. The Nasdaq gained ground all day and also closed at a record. The Dow Jones Industrial Average fell.

Technology stocks were the brightest spot in the market. A solid earnings report from Texas Instruments pushed the chipmaker's stock higher and made the sector the biggest gainer.

Industrial stocks moved broadly higher after UPS beat Wall Street's financial forecasts. The solid results from the delivery service counteracted steep drops from Boeing and Caterpillar, which both reported weak results.

https://www.usnews.com/news/busines...ise-on-report-of-revived-us-china-trade-talks

Stocks Hit Record Highs as Investors Reward Solid Earnings
U.S. stocks closed higher as investors rewarded solid financial results from several large companies.
By Associated Press, Wire Service Content July 24, 2019, at 4:36 p.m

By DAMIAN J. TROISE, AP Business Writer

NEW YORK (AP) — Stocks steadily gained ground Wednesday and closed broadly higher on Wall Street as investors rewarded solid earnings results from several large companies.

The S&P 500 got off to a weak start but gained steam and closed at a record high. Smaller stocks far outpaced larger ones and gave the Russell 2000 the biggest gain among major indexes. The Nasdaq gained ground all day and also closed at a record. The Dow Jones Industrial Average fell.

Technology stocks were the brightest spot in the market. A solid earnings report from Texas Instruments pushed the chipmaker's stock higher and made the sector the biggest gainer.

Industrial stocks moved broadly higher after UPS beat Wall Street's financial forecasts. The solid results from the delivery service counteracted steep drops from Boeing and Caterpillar, which both reported weak results.

Anthem sank 4.5% after the insurer reported higher costs. UnitedHealth Group lost 1.5%. The health care sector fell broadly.

The Russell 2000, which focuses on smaller stocks, outshone every other index. It rose 25.46 points, or 1.6%, to 1,580.42.

The S&P 500 index rose 14.09 points, or 0.5%, to 3,019.56, putting it on track for a weekly gain.

Boeing and Caterpillar weighed down The Dow Jones Industrial Average. It fell 79.22 points, or 0.3%, to 27,269.97.

The Nasdaq rose 70.10 points, or 0.8%, to 8,321.50.

Corporate results have been mixed this week, though investors are jumping on some of the best performers during this latest round. This is a heavy week for financial results, with nearly 150 major companies reporting results through Friday. Stocks have been volatile over the last few weeks as investors assess the results to gain a better picture of the overall economy.

Investors have been treading cautiously as the trade war between the U.S. and China looms over corporate earnings. The uncertainty could continue to sap business confidence, said Scott Wren, senior global equity strategist at Wells Fargo Investment Institute.

"Companies across the world are holding back on capital expenditures as uncertainty reigns supreme," he wrote in a note to investors.

Looking ahead, the market will remain focused on central banks, particularly the Federal Reserve, as they take measures to support economic growth. Investors expect the Federal Reserve to cut interest rates next week.

Stocks continued to rise and fall on their earnings results.

Roomba maker iRobot plummeted 16.9% after slashing its profit and revenue forecasts because of the U.S. trade war with China.

Tupperware Brands plunged 19.1% after the maker of plastic storage containers chopped its profit forecast for the year following a weak second quarter. The company cited lower consumer spending in all of its regions.

Texas Instruments rose 7.4% after surprising investors with a solid profit and sales forecast, helping to ease concerns on Wall Street about weak demand because of the U.S.-China trade war. Chipmakers have been under pressure because of fears that sales in China would feel the brunt of tariffs and technology restrictions.

UPS rose 8.7% as demand for next-day delivery service pushed its second quarter financial results past Wall Street's forecasts. The company has been expanding its delivery service options to meet growing demand from online shopping.

Benchmark crude oil fell 89 cents to settle at $55.88 a barrel. Brent crude oil, the international standard, fell 65 cents to close at $63.18 a barrel. Wholesale gasoline was unchanged at $1.86 per gallon. Heating oil declined 1 cent to $1.91 per gallon. Natural gas fell 8 cents to $2.22 per 1,000 cubic feet.

Gold rose $2.70 to $1,422.80 per ounce, silver rose 14 cents to $16.55 per ounce and copper rose 1 cent to $2.70 per pound.

The dollar fell to 108.20 Japanese yen from 108.26 yen on Tuesday. The euro weakened to $1.1136 from $1.1150.

The yield on the 10-year Treasury fell to 2.05% from 2.07% late Tuesday.

 

[bigdog]

U.S. stocks retreated from record highs on Wall Street Thursday as large companies delivered weak earnings and disappointing forecasts.

The daylong slide marked a turnaround from Wednesday, when a series of solid earnings helped push major indexes to records. This is one of the busiest weeks in the latest round of corporate earnings. The market has been volatile since reports started trickling in last week.

The market has been swinging up and down for the last two weeks as investors reward and punish corporate earnings, but the overall picture shows solid performances. More than 75% of S&P 500 companies reporting have so far beat somewhat tempered forecasts.

https://www.usnews.com/news/busines...igher-korean-kospi-falls-after-missile-launch

Stocks Slide Over Disappointing Earnings Reports
U.S. stocks retreated from record highs as large companies delivered weak earnings reports and disappointing forecasts.
By Associated Press, Wire Service Content July 25, 2019, at 5:24 p.m.

By DAMIAN J. TROISE, AP Business Writer

NEW YORK (AP) — U.S. stocks retreated from record highs on Wall Street Thursday as large companies delivered weak earnings and disappointing forecasts.

The daylong slide marked a turnaround from Wednesday, when a series of solid earnings helped push major indexes to records. This is one of the busiest weeks in the latest round of corporate earnings. The market has been volatile since reports started trickling in last week.

The market has been swinging up and down for the last two weeks as investors reward and punish corporate earnings, but the overall picture shows solid performances. More than 75% of S&P 500 companies reporting have so far beat somewhat tempered forecasts.

"It's a pretty low bar to chin and a lot of companies have chinned it," said Katie Nixon, chief investment officer at Northern Trust Wealth Management.

The S&P 500 index fell 15.89 points, or 0.5%, to 3,003.67. The Dow Jones Industrial Average fell 128.99 points, or 0.5%, to 27,140.98. The Nasdaq composite fell 82.96 points, or 1%, to 8,238.54.

Technology stocks sustained the steepest declines throughout the day. Digital payments company PayPal slid 5.1% after cutting its revenue forecast. Microsoft and Apple also fell. Ford slid 7.5% and sent automakers and consumer-oriented stocks lower after reporting a severe drop in profit that fell shy of analysts' forecasts.

Align Technology plummeted 27% after the maker of the Invisalign dental system gave investors a surprisingly weak forecast because of weak demand in China. The company held down the rest of the health care sector.

American Airlines shed 8.4% after warning investors of the hefty costs because of the grounding of Boeing 737 Max jets. Both companies weighed down the industrial sector.

Tesla slumped 13.6 % after the electric car maker reported a surprisingly sharp loss during the second quarter. It also announced the departure of its longtime chief technology officer.

A 1.9% drop from Facebook pushed communications stocks lower following the social media company's latest disclosure that it is being investigated over allegedly anticompetitive behavior.

More than 36% of S&P 500 companies have reported their latest financial results and investors are still expecting a contraction in overall profit. That would mark the second quarter in a row of lower earnings.

Industrial and technology stocks, which have been contending with the impact of trade disputes and tariffs, will feel some of the most severe profit contractions, according to FactSet.

Amazon reported weak profit for the quarter after the market closed. It fell 1.4% in afterhours trading.

Consumer products giant Colgate-Palmolive and McDonald's will release their results on Friday.

Germany's DAX fell 1.3% after a survey showed that business confidence Europe's largest economy dropped to a six-year low. France's CAC 40 and Britain's FTSE 100 also fell.

Benchmark crude oil rose 14 cents to settle at $56.02 a barrel. Brent crude oil, the international standard, rose 21 cents to close at $63.39 a barrel. Wholesale gasoline rose 2 cents to $1.88 per gallon. Heating oil was unchanged at $1.91 per gallon. Natural gas rose 2 cents to $2.24 per 1,000 cubic feet.

Gold fell $8.90 to $1,413.90 per ounce, silver fell 21 cents to $16.34 per ounce and copper was unchanged at $2.70 per pound.

Bond prices fell. The yield on the 10-year Treasury rose to 2.08% from $2.05% on Wednesday after the government reported that orders to U.S. factories for large manufactured goods rose last month beyond economists' forecasts.

The dollar rose to 108.73 Japanese yen from 108.20 yen on Wednesday. The euro strengthened to $1.1144 from $1.1136.

 

[bigdog]

https://www.usnews.com/news/busines...rise-toward-records-following-strong-earnings

US Stocks Return to Records Following Strong Earnings
U.S. stocks pushed to record heights Friday following strong profit reports from Google's parent company, Twitter and other big corporations.
By Associated Press, Wire Service Content July 26, 2019, at 4:29 p.m.

By STAN CHOE, AP Business Writer

NEW YORK (AP) — U.S. stocks pushed to record heights Friday following strong profit reports from Google's parent company, Twitter and other big corporations.

Companies are nearly midway through earnings reporting season, and results have generally been better than the dismal expectations that analysts had coming into it. A government report on Friday also showed that U.S. economic growth slowed in the spring, but it was still better than economists expected.

All the reports are emblematic of an economy that's strengthening but still shadowed by a pile of concerns, which only bolsters investors' expectations for the Federal Reserve to cut interest rates at its meeting next week. It would be the first cut in more than a decade, when the Fed was trying to shock the economy out of the Great Recession.

The S&P 500 index rose 22.19 points, or 0.7%, to 3,025.86 and passed its prior record set on Wednesday. The Dow Jones Industrial average gained 51.47, or 0.2%, to 27,192.45, and the Nasdaq composite also set a record after jumping 91.67 points, or 1.1%, to 8,330.21.

Friday's report on the U.S. economy showed that consumer spending remains strong, and employers continue to add jobs every month. But businesses are hesitant to invest, and manufacturing worldwide has slowed amid President Donald Trump's trade war. Inflation also remains low.

Lower interest rates could boost economic activity and goose inflation higher. Investors also see them as a shot of adrenaline for stocks and other risky investments. The European Central Bank earlier this week held its key interest rate steady, but it made clear that more stimulus is on the way.

In the United States, investors think there's virtually 100% certainty that the Fed will cut its benchmark short-term rate on Wednesday, likely by a quarter of a percentage point from its current range of 2.25% to 2.50%.

"Any time you hit a record high, you ask: Is this justified?" said David Joy, chief market strategist at Ameriprise. "Well, it's justified based on the easing cycle that central banks are on, and the absolute level of earnings helps. But growth is sluggish and moderating, earnings are flattish and we've got this overhang of, let's call it geopolitical uncertainty. We say, 'Let's be a little cautious here.'"

If S&P 500 companies are able to report flat earnings growth for the second quarter, it would be a small victory. Analysts came into this earnings reporting season expecting a drop of roughly 3% in earnings per share for S&P 500 companies, according to FactSet.

So far this earnings season, about 44% of companies in the S&P 500 have already reported, and their earnings per share have been up a little more than 1% from year-ago levels. That means analysts are now forecasting a more modest drop for the S&P 500 index overall, closer to 2%.

Alphabet, Google's parent company, soared to one of the biggest gains in the S&P 500 Friday after it joined the list of companies reporting stronger-than-expected profits. It also allayed investors' concerns about advertising trends after reporting stronger revenue growth than Wall Street forecast. Alphabet shares surged 9.6% for their best day in four years.

Twitter jumped 8.9% after it reported stronger user numbers and revenue for the second quarter than investors expected. The big gains for Alphabet and Twitter meant stocks in the communications sector were the best performers in the S&P 500, up 3.2%. That was more than double the gain of any of the other 10 sectors that make up the index.

Sprint and T-Mobile US also jumped after the Justice Department approved their merger, despite fears that the deal could bring higher prices and less competition for customers. Sprint rose 7.4%, and T-Mobile US gained 5.4%.

Treasury yields held relatively steady, as investors continue to settle on expectations for the Federal Reserve to cut short-term rates by only a quarter of a percentage point next week, rather than the half-point cut that some investors were anticipating earlier.

The 10-year Treasury yield remained at 2.07%. The two-year yield, which is more influenced by the Fed's movements, rose to 1.86% from 1.84% late Thursday.

In overseas markets, the French CAC 40 rose 0.6%, the German DAX gained 0.5%. and the FTSE 100 in London climbed 0.8%. Japan's Nikkei 225 slipped 0.5%, the South Korean Kospi fell 0.4% and the Hang Seng in Hong Kong lost 0.7%.

Benchmark U.S. oil rose 18 cents to settle at $56.20 a barrel. Brent crude, the international standard, rose 7 cents to $63.46 a barrel. Wholesale gasoline fell 1 cent to $1.87 per gallon. Heating oil declined 1 cent to $1.90 per gallon. Natural gas fell 7 cents to $2.17 per 1,000 cubic feet.

Gold rose $4.60 to $1,418.50 per ounce, silver fell 1 cent to $16.33 per ounce and copper fell 2 cents to $2.68 per pound.

The dollar fell to 108.71 Japanese yen from 108.73 yen on Thursday. The euro strengthened to $1.1126 from $1.1144.

3823

 

[bigdog]

Major U.S. stock indexes closed mostly lower Monday as investors turned cautious ahead of a key Federal Reserve interest policy announcement and other potentially market-moving developments on tap for this week.

Banks, retailers and communications companies took the brunt of the selling. Those losses were partially offset by gains in health care and household goods makers. Utilities and real estate stocks also rose, as traders shifted funds into less risky assets.

The modest slide cut into some of the market's gains from Friday, when the benchmark S&P 500 hit an all-time high.

Traders are expecting that the Federal Reserve will announce on Wednesday that it is cutting interest rates for the first time in a decade to help ensure U.S. economic growth in the face of trade uncertainty.

https://www.usnews.com/news/busines...stly-fall-as-market-eyes-us-china-trade-talks

US Stocks Slip Ahead of Key Fed Meeting, Busy Earnings Week
Major U.S. stock indexes closed mostly lower Monday as investors turned cautious ahead of a key Federal Reserve interest policy announcement and other potentially market-moving developments on tap for this week.
By Associated Press, Wire Service Content July 29, 2019, at 4:54 p.m.

By ALEX VEIGA, AP Business Writer

Major U.S. stock indexes closed mostly lower Monday as investors turned cautious ahead of a key Federal Reserve interest policy announcement and other potentially market-moving developments on tap for this week.

Banks, retailers and communications companies took the brunt of the selling. Those losses were partially offset by gains in health care and household goods makers. Utilities and real estate stocks also rose, as traders shifted funds into less risky assets.

The modest slide cut into some of the market's gains from Friday, when the benchmark S&P 500 hit an all-time high.

Traders are expecting that the Federal Reserve will announce on Wednesday that it is cutting interest rates for the first time in a decade to help ensure U.S. economic growth in the face of trade uncertainty.

Investors will also be wading through the heaviest slate of the current corporate earnings reporting season this week. And they'll be keeping an eye on trade negotiations between the U.S. and China, which resume Tuesday, and on a key government jobs report due out Friday.

"This is a marking time sort of day with earnings coming up, with the Fed coming up, with the economic data coming up later this week," said Willie Delwiche, investment strategist at Baird. "If anything, you have a modest reaction to the all-time highs that we saw on Friday and a chance to take profits, but not much conviction either way."

The S&P 500 index slipped 4.89 points, or 0.2%, to 3,020.97. The Dow Jones Industrial Average rose 28.90 points, or 0.1%, to 27,221.35.

The Nasdaq composite fell 36.88 points, or 0.4%, to 8,293.33. The Russell 2000 index of smaller companies slid 9.94, or 0.6%, to 1,569.02.

Slightly more stocks rose than declined on the New York Stock Exchange. Major stock indexes in Europe closed mostly lower.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.06% from 2.08% late Friday.

Despite Monday's selling, the market's record run at the end of last week kept the broader market on track for another month of gains. The S&P 500 is up 2.7% in July and the Nasdaq is up 3.6%.

Even with a busy week of corporate earnings on deck this week, Wall Street will be focused mainly on the outcome of the Fed's meeting of policymakers.

The market expects the central bank will cut its benchmark short-term rate on Wednesday to help ensure U.S. economic growth in the face of trade uncertainty. Investors are expecting the Fed will cut its rate by a quarter of a percentage point from its current range of 2.25% to 2.50%. That would be the Fed's first rate cut in a decade.

Wall Street is betting that a Fed rate cut would give the economy, and stock prices, a boost. But that depends more on whether the Fed drops any hints about how inclined it might be to cut rates multiple times this year.

"Do they talk about this as a cut and look for another cut, or is there a cut and this is going to be it?" Delwiche said. "The market is expecting somewhere around three cuts over the course of the second half (of 2019). It seems to me the Fed is going to want to start pushing back against that expectation. How it achieves that could be the driver for stocks in the near-term."

Financial stocks accounted for a big share of the selling Monday. Raymond James Financial slid 3.5% and Wells Fargo & Co. dropped 2.1%. The sector fell as bond yields dropped, which pulls interest rates on mortgages and other loans lower.

Retailers and other consumer-oriented companies also weighed on the market, with Amazon sliding 1.6% and discount chain Dollar Tree losing 2.1%. Facebook dropped 1.9% and Dish Network fell 3.1% as part of a broad slump in communications stocks.

Gains in health care companies partly offset some of those losses. The sector was mostly propped up by pharmaceutical companies ahead of some key earnings. Some corporate deal news involving health companies also helped boost the sector.

Pfizer slid 3.8% after the drug company said it will spin off one of its units, Upjohn, which will then combine with Mylan, which makes generic pharmaceuticals. Upjohn sells one-time blockbusters like Viagra and Lipitor that have lost patent protection. Mylan soared 12.6%.

Cancer diagnostics company Exact Sciences recovered most of an early slide, shedding 0.3%, after announcing a cash and stock buyout of diagnostic test maker Genomic Health, which rose 6.4%.

Cooper Tire & Rubber's latest quarterly report card helped put traders in a selling mood. The stock tumbled 9.6% after the company's results fell far short of Wall Street's forecasts because of a weak tire market in China and Europe. Higher tariff costs and a lingering weak tire market will continue to hurt the company in 2019 and it no longer expects volume growth.

Booz Allen Hamilton rose 3.4% after the defense contractor's fiscal first quarter profit and revenue beat analysts' estimates.

Companies are just about halfway done with corporate earnings season and the slowdown in profit growth isn't as severe as analysts initially forecast. Among the big companies due to serve up their results this week are Apple on Tuesday and General Motors on Thursday.

Trade also remains on investors' radar. The U.S. and China head into another round of trade negotiations on Tuesday. Wall Street is hoping the nations can avoid another escalation in tariffs like the one that occurred two months ago after talks fell apart.

Investors are also awaiting the government's monthly jobs report for July, which will be released on Friday.

Benchmark crude oil rose 67 cents to settle at $56.87 a barrel. Brent crude oil, the international standard, gained 25 cents to close at $63.71 a barrel. Wholesale gasoline fell 1 cent to $1.86 per gallon. Heating oil declined 1 cent to $1.91 per gallon. Natural gas fell 3 cents to $2.14 per 1,000 cubic feet.

Gold rose $1.13 to $1,419.60 per ounce, silver rose 4 cents to $16.37 per ounce and copper rose 1 cent to $2.69 per pound.

The dollar rose to 108.80 Japanese yen from 108.71 yen on Friday. The euro strengthened to $1.1146 from $1.1126.

 

[bigdog]

A mixed batch of corporate earnings helped drag the major U.S. stock indexes slightly lower Tuesday, pulling the market farther from its recent record highs for the second straight day.

Mixed or disappointing reports from Under Armour, Dish Network, Corning, HCA and Beyond Meat and others weighed on the market. Capital One Financial slumped after the credit card issuer and bank disclosed that roughly 100 million people had some personal information stolen by a hacker.

The Dow Jones Industrial Average dropped 23.33 points, or 0.1%, to 27,198.02. The Nasdaq composite slid 19.71 points, or 0.2%, to 8,273.61.

https://www.usnews.com/news/busines...-higher-as-china-us-trade-talks-set-to-resume

US Stocks End Slightly Lower Amid Mixed Company Earnings
A mixed batch of corporate earnings helped drag the major U.S. stock indexes slightly lower Tuesday, pulling the market farther from its recent record highs for the second straight day.
By Associated Press, Wire Service Content July 30, 2019, at 5:03 p.m.

By ALEX VEIGA, AP Business Writer

A mixed batch of corporate earnings helped drag the major U.S. stock indexes slightly lower Tuesday, pulling the market farther from its recent record highs for the second straight day.

Mixed or disappointing reports from Under Armour, Dish Network, Corning, HCA and Beyond Meat and others weighed on the market. Capital One Financial slumped after the credit card issuer and bank disclosed that roughly 100 million people had some personal information stolen by a hacker.

Apple climbed 3% in after-hours trading after its latest results handily beat analysts' estimates.

Homebuilders also bucked the broader decline after D.R. Horton reported strong quarterly results and positive gains in new home orders.

This week's modest market pullback came as investors looked cautiously ahead to a key policy update from the Federal Reserve on Wednesday. That's when the central bank is widely expected to cut its benchmark interest rate for the first time in a decade. The Fed has decided that a rate cut now — and possibly one or more additional cuts to follow — could help inoculate the economy against a potential downturn.

"There's just a lot of confusion on whether is there really going to be a rate cut, which the market seems to think there will be, and then if there's going to be any indication of further rate cuts," said Karyn Cavanaugh, senior markets strategist at Voya Investment Management.

The S&P 500 index fell 7.79 points, or 0.3%, to 3,013.18. Despite its two-day slide, the benchmark index remains within 0.4% of its all-time high set on Friday.

The Dow Jones Industrial Average dropped 23.33 points, or 0.1%, to 27,198.02. The Nasdaq composite slid 19.71 points, or 0.2%, to 8,273.61.

Small-company stocks fared better than the rest of the market. The Russell 2000 index rose 16.57 points, or 1.1%, to 1,585.60.

Major stock indexes in Europe finished lower.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.06% from 2.05% late Monday.

Even with the broader market pullback this week, indexes are still poised to close July with solid gains. The S&P 500 is up 2.4% for the month and the Nasdaq is up 3.3%. The Dow is up 2.3%.

Technology stocks accounted for the biggest share of the selling Tuesday. Communications services stocks, retailers and health care companies also weighed on the market. Energy stocks led the gainers, benefiting from a 2.1% pickup in U.S. crude oil prices.

Capital One Financial fell 5.9% after the bank said a hacker gained access to the personal information of more than 100 million people.

Companies are about midway through earnings reporting season, and results have generally been better than the dismal expectations that analysts had coming into it. Still, most of the companies that reported disappointing quarterly results Tuesday put investors in a selling mood.

Gartner led the technology sector decline, tumbling 19% after the research company cut its earnings and revenue guidance.

Under Armour plunged 12.2% after the sports apparel company's revenue fell short of Wall Street forecasts. The company also said it expects a slight sales decline in North America this year and its overall profit forecast for 2019 is weaker than analyst forecasts.

Dish Network slid 8.7% after the satellite television provider's second quarter profit fell short of analysts' forecasts.

Beyond Meat slumped 12.3% after the plant-based burger maker reported a bigger loss than Wall Street anticipated during the second quarter and announced a stock sale. The loss and secondary stock offering overshadowed solid sales results and an increased sales forecast.

Offshore drilling company McDermott International plunged 35.3% after it slashed its financial forecast and told investors it will register a loss in 2019.

Other companies got a boost after their latest results impressed investors.

Procter & Gamble led consumer products makers higher after reporting results that easily beat Wall Street's forecasts. The stock gained 3.8%.

D.R. Horton climbed 5.7% after the homebuilder's fiscal third quarter earnings and revenue topped estimates. The builder, which touted increased new home orders and prices, also authorized up to $1 billion in share buybacks. Horton's results helped boost most other homebuilder stocks.

Traders also had their eye on the trade dispute between the U.S. and China, as negotiators began a new round of talks.

The lingering trade war between the U.S. and China has been cutting into corporate profit for some industries all year and has investors concerned that it will continue to crimp business investment and growth. Delegates from the U.S. and China are meeting in Shanghai this week in the latest round of negotiations, months after the trade spat escalated with more tariffs.

President Donald Trump ramped up criticism of Beijing just as the new round of talks began Tuesday. In a series of tweets, Trump claimed China is trying to hold off on an agreement until after the next U.S. elections. Trump threatened to get "much tougher" with China on trade if he wins in 2020.

The remarks didn't appear to have much of an impact on the market, however.

"Investors are coming to the realization that this is going to be a long and drawn-out process, and they can't bet the farm every single time that there's some type of announcement," Cavanaugh said.

Beyond earnings, trade and, investors were looking ahead to other potentially market-moving events this week, including a government jobs report on Friday.

Benchmark crude oil rose $1.18 to settle at $58.05 a barrel. Brent crude oil, the international standard, gained $1.01 to close at $64.72 a barrel. Wholesale gasoline added 4 cents to $1.90 per gallon. Heating oil climbed 3 cents to $1.94 per gallon. Natural gas was unchanged at $2.14 per 1,000 cubic feet.

Gold rose $9.30 to $1,429.70 per ounce, silver rose 13 cents to $16.50 per ounce and copper fell 4 cents to $2.67 per pound.

The dollar fell to 108.60 Japanese yen from 108.80 yen on Monday. The euro strengthened to $1.1156 from $1.1146.

 

[bigdog]

Stocks fell and bond yields rose on Wall Street Wednesday after the Federal Reserve lowered its key interest rate for the first time in a decade but left investors feeling uncertain about the likelihood of further cuts.

The quarter-point cut announced by the central bank was widely expected, so investors focused on Chairman Jerome Powell's remarks during a news conference for hints about the Fed's future plans.

Powell said that there could be more cuts, but that the central bank was not intending to embark on a long cycle of lowering interest rates. He characterized the rate cut as a "mid-cycle adjustment."

The remarks sent stocks into a skid that briefly knocked the Dow Jones Industrial Average down more than 470 points. Prices of short-term U.S. government bonds fell, sending yields higher.

The Dow Jones Industrial Average lost 333.75 points, or 1.2%, to 26,864.27. The Dow was briefly down 478 points

https://www.usnews.com/news/busines...-fall-as-markets-look-to-us-fed-rate-decision

Stocks Sink as Powell Dents Hopes for Multiple Rate Cuts
Stocks fell and bond yields rose on Wall Street Wednesday after the Federal Reserve lowered its key interest rate for the first time in a decade but left investors feeling uncertain about the likelihood of more cuts.
By Associated Press, Wire Service Content July 31, 2019, at 4:45 p.m.

By ALEX VEIGA, AP Business Writer

Stocks fell and bond yields rose on Wall Street Wednesday after the Federal Reserve lowered its key interest rate for the first time in a decade but left investors feeling uncertain about the likelihood of further cuts.

The quarter-point cut announced by the central bank was widely expected, so investors focused on Chairman Jerome Powell's remarks during a news conference for hints about the Fed's future plans.

Powell said that there could be more cuts, but that the central bank was not intending to embark on a long cycle of lowering interest rates. He characterized the rate cut as a "mid-cycle adjustment."

The remarks sent stocks into a skid that briefly knocked the Dow Jones Industrial Average down more than 470 points. Prices of short-term U.S. government bonds fell, sending yields higher.

Stocks erased some of their losses later during Powell's news conference, when he seemed to shift his message to leave open the possibility that the Fed would cut rates again.

"Clearly, the market is disappointed," said Quincy Krosby, chief market strategist at Prudential Financial. "They wanted a more emphatic message from the Fed that this was in fact the beginning of a trend."

The S&P 500 index dropped 32.80 points, or 1.1%, to 2,980.38. The benchmark index had its worst day in two months. It hit an all-time high just last Friday.

The Dow Jones Industrial Average lost 333.75 points, or 1.2%, to 26,864.27. The Dow was briefly down 478 points.

The Nasdaq composite fell 98.19 points, or 1.2%, to 8,175.42. The Russell 2000 index of smaller companies slid 10.99 points, or 0.7%, to 1,574.61.

Trading was muted for much of Wednesday until the Fed issued its interest rate policy statement at 2 p.m. Eastern Time. The rate cut was widely expected, so the market didn't have much of an initial reaction. That changed swiftly as Powell spoke, casting doubt on the prospects for further rate cuts.

"The market was expecting a cut of 25 basis points with an actively dovish message, meaning there would be more rate cuts coming," Krosby said. "But once he started to talk about the fact that this was a mid-cycle adjustment ... the market always wants more."

The Fed hopes the rate cut will counter threats to the U.S. economy ranging from uncertainties caused by the nation's trade disputes to chronically low inflation and a dimming global growth outlook.

Fed officials had signaled in recent weeks their readiness to take action to help shore up the U.S. economy, which faces threats to growth from the prolonged trade war with China.

The central bank cut its benchmark rate by a quarter-point to a range of 2% to 2.25%. It's the first rate cut since December 2008 during the depths of the Great Recession, when the Fed slashed its rate to a record low near zero and kept it there until 2015. After that, the Fed went on to make nine quarter-point rate increases from December 2015 to December 2018.

The economy is far healthier now than it was in 2008, despite risks to what's become the longest expansion on record.

Traders have been betting the rate cut could help give the economy, and stock prices, a boost. It would help lower rates on consumer and business loans, which would encourage borrowing and possibly energize the economy.

Still, some on Wall Street had believed the Fed might act more aggressively in cutting rates by half a percentage point rather than the quarter-point cut it wound up making. Disappointment over that may have also put traders in a selling mood.

The Fed did release a statement that repeated a pledge to "act as appropriate to sustain the expansion," wording that the financial markets have previously interpreted as a signal for possible future rate cuts.

The 10-year Treasury yield fell to 2.01% from 2.06% late Tuesday, a big move. The two-year yield, which is more influenced by the Fed's movements, rose sharply to 1.86% from 1.83%.

Stocks have been mostly pulling back after setting records last week. Wednesday's losses were widespread, with technology, health care and consumer-oriented companies accounting for much of the market's late-afternoon tumble.

In addition to keeping an eye on the Fed, investors continued to pore through a heavy flow of corporate earnings.

Companies are about midway through the earnings reporting season, and results have generally been better than the dismal expectations that analysts had coming into it.

Apple rose 2% after beating Wall Street's profit and revenue forecasts for the quarter while slamming the brakes on the decline of iPhone sales in China. Sales of the company's best-known product are still sputtering, but the company has seen increasing revenue contributions from digital services, such as music.

Dine Brands Global, the owner of IHOP and Applebee's, fell 5.1% after slashing its financial forecast for the year. The company cut forecasts for sales at existing Applebee's and IHOP locations, along with overall profit, following a disappointing second quarter earnings report.

Molson Coors Brewing also slid 5.1% after the company reported a global decline in volume and sales during the second quarter that weighed down profit. The maker of Molson and Coors fell short of analysts' profit and revenue forecasts.

Benchmark crude oil rose 53 cents to settle at $58.58 a barrel. Brent crude oil, the international standard, rose 45 cents to close at $65.17 a barrel. Wholesale gasoline was unchanged at $1.90 per gallon. Heating oil climbed 2 cents to $1.96 per gallon. Natural gas rose 9 cents to $2.23 per 1,000 cubic feet.

Gold fell $3.60 to $1,426 10 per ounce, silver fell 15 cents to $16.35 per ounce and copper fell 1 cent to $2.66 per pound.

 

[bigdog]

Stocks slumped Thursday and bond prices spiked after President Donald Trump surprised markets with a new 10% tariff on $300 billion worth of goods from China beginning next month.

The news erased a broad rally on Wall Street, leading to the market's fourth straight loss. Bond prices surged, sending yields sharply lower, as investors sought safety.

The price of U.S. crude oil skidded nearly 8%, its biggest drop in more than four years and a signal that investors fear the economy could slow down.

Investors were taken off guard by the tariff announcement because the White House had said a day earlier that Beijing had promised to buy more farm goods. That came just as the latest round of trade talks were ending.

The Dow Jones Industrial Average fell 280.85 points, or 1%, to 26,583.42. The average briefly swung about 600 points as the sell-off intensified.

https://www.usnews.com/news/busines...s-follow-wall-street-lower-after-fed-rate-cut

Stocks Fall as Rally Gives Way to US-China Trade War Worries
Stocks slumped Thursday and bond prices spiked after President Donald Trump surprised markets with a new 10% tariff on $300 billion worth of goods from China beginning next month.
By Associated Press, Wire Service Content Aug. 1, 2019, at 5:11 p.m..

By ALEX VEIGA, AP Business Writer

Stocks slumped Thursday and bond prices spiked after President Donald Trump surprised markets with a new 10% tariff on $300 billion worth of goods from China beginning next month.

The news erased a broad rally on Wall Street, leading to the market's fourth straight loss. Bond prices surged, sending yields sharply lower, as investors sought safety.

The price of U.S. crude oil skidded nearly 8%, its biggest drop in more than four years and a signal that investors fear the economy could slow down.

Investors were taken off guard by the tariff announcement because the White House had said a day earlier that Beijing had promised to buy more farm goods. That came just as the latest round of trade talks were ending.

Companies that rely heavily on doing business with China took the brunt of the selling Thursday. Electronics retailer Best Buy went from a slight gain to a drop of 10.8% in heavy trading. Apple went from a gain of 1.4% to a loss of 2.2%.

"Investors never like to be taken by surprise, and that's what happened today," said Sam Stovall, chief investment strategist at CFRA.

The S&P 500 index dropped 26.82 points, or 0.9%, to 2,953.56. The index has fallen for four straight days since setting an all-time high on Friday.

The Dow Jones Industrial Average fell 280.85 points, or 1%, to 26,583.42. The average briefly swung about 600 points as the sell-off intensified.

The Nasdaq composite lost 64.30 points, or 0.8%, or 8,111.12. The Russell 2000 index of small companies slid 23.84 points, or 1.5%, to 1,550.76.

The escalation in the long-running and costly trade dispute comes only a couple of days after both sides resumed negotiations. In a series of tweets, Trump noted that while the slow-moving trade talks have been "constructive," China has not followed through on some prior agreements.

The new tariff would take effect Sept. 1. The U.S. has already applied tariffs of 25% on $250 billion worth of goods from China. Beijing has retaliated with tariffs on $110 billion in American goods, including agricultural products, in a direct shot at Trump supporters in the U.S. farm belt.

Unlike the earlier set of tariffs, which were meant to minimize the impact on ordinary Americans by targeting industrial goods, the new ones would affect a wide range of consumer products.

The tariff announcement came a day after Trump expressed frustration that the Federal Reserve isn't cutting interest rates more aggressively.

The Fed cut its key interest rate for the first time in a decade Wednesday, citing uncertainty over the U.S. trade conflicts as a factor in the decision to lower rates in an otherwise healthy economy. However, Fed Chairman Jerome Powell suggested the central bank was not embarking on an extended cycle of cutting rates, as many investors had hoped.

Banks, industrials and consumer discretionary were among the hardest-hit sectors. Bank of America dropped 3.9%, Boeing slid 2% and Gap tumbled 7.9%.

Energy stocks also fell sharply as crude oil prices sank. Exxon Mobil fell 2.6%.

Utilities and real estate stocks rose as traders shifted money into more stable, high-yield stocks.

Prices for U.S. government bonds rose sharply, sending yields lower. The yield on the 10-year Treasury fell to 1.90%, the lowest level since the 2016 election. That yield, a benchmark used to set interest rates on mortgages and other loans, has been declining steadily since November, when it traded as high as 3.23%.

Meanwhile, the yield on the 2-year Treasury note slid to 1.73% from 1.87% late Wednesday, a very large move.

The latest jump in bond prices is signaling that investors still feel there is a risk of an economic downturn, said Michelle Girard, chief U.S. economist at NatWest Markets.

"The feeling remains that this is not going to be one-and-done and the Fed is still going to have to lower rates again this year," Girard said.

The price of U.S. crude oil skidded 7.9%, the largest drop since February 2015.

Traders continued to pore over a steady flow of corporate earnings Thursday, with several big-name companies reporting surprisingly good results. The latest round of reports has been better than Wall Street initially expected just a month ago.

Investors still have some key financial reports to look out for this week. Oil companies Exxon and Chevron will report results on Friday. The government will also release its employment report for July on Friday.

Qualcomm fell 2.7% after the chipmaker gave investors a surprisingly weak profit and revenue forecast because of problems in China. A ban on exports to China's Huawei, which is part of the ongoing trade war between the U.S. and China, is hanging over the company.

The price of benchmark U.S. crude oil fell $4.63 to settle at $53.95 a barrel. Brent crude oil, the international standard, sank $4.55 to close at $60.50 a barrel.

Wholesale gasoline fell 11 cents to $1.75 per gallon. Heating oil declined 11 cents to $1.85 per gallon. Natural gas fell 2 cents to $2.20 per 1,000 cubic feet.

Gold fell $5.20 to $1,420.90 per ounce, silver fell 23 cents to $16.12 per ounce and copper was unchanged at $2.66 per pound.

The dollar fell to 107.33 Japanese yen from 108.77 yen on Wednesday. The euro strengthened to $1.1082 from $1.1085.

 

[bigdog]

Investors rattled by President Donald Trump's latest escalation in his trade war with China drove another round of selling on Wall Street Friday.

The latest losses marked the fifth straight drop for the S&P 500 and the worst week of the year for the market just seven days after the benchmark index hit an all-time high.

The selling picked up a day after Trump shocked markets by promising 10% tariffs on all the Chinese imports that haven't already been hit with tariffs of 25%. China struck back Friday, saying it will take "necessary countermeasures" if Trump follows through on the new tariffs, which would kick in next month.

The re-escalation in tensions between the world's largest economies has raised worries about a global recession. Investors have responded by selling stocks and buying gold and government bonds. The heightened tensions have also raised Wall Street's expectations that the Federal Reserve will be forced to cut interest rates several times to cushion the trade war's blow.

Gold rose $27.70 to $1,445.60 per ounce.

The Dow Jones Industrial Average dropped 98.41 points, or 0.4%, to 26,485.01. The average had briefly fallen by 334 points.

The Dow Dropped 98 Points Because Tariffs Might Finally Hit Home

https://www.usnews.com/news/busines...n-stocks-plunge-on-us-china-trade-war-worries

S&P 500 Posts Its Worst Week of 2019 as Trade Tensions Flare
Investors rattled by President Donald Trump's latest escalation in his trade war with China drove another round of selling on Wall Street Friday.
By Associated Press, Wire Service Content Aug. 2, 2019, at 5:22 p.m.

By STAN CHOE and ALEX VEIGA, AP Business Writers

Investors rattled by President Donald Trump's latest escalation in his trade war with China drove another round of selling on Wall Street Friday.

The latest losses marked the fifth straight drop for the S&P 500 and the worst week of the year for the market just seven days after the benchmark index hit an all-time high.

The selling picked up a day after Trump shocked markets by promising 10% tariffs on all the Chinese imports that haven't already been hit with tariffs of 25%. China struck back Friday, saying it will take "necessary countermeasures" if Trump follows through on the new tariffs, which would kick in next month.

The re-escalation in tensions between the world's largest economies has raised worries about a global recession. Investors have responded by selling stocks and buying gold and government bonds. The heightened tensions have also raised Wall Street's expectations that the Federal Reserve will be forced to cut interest rates several times to cushion the trade war's blow.

"The threat of additional tariffs on China and the lack of any progress in the trade negotiations again have made investors more worried that the disruptions which have led the Fed to need to cut rates might in fact escalate faster than the positive impact of rate cuts," said Kate Warne, chief investment strategist at Edward Jones.

The S&P 500 fell 21.51 points, or 0.7%, to 2,932.05. The Dow Jones Industrial Average dropped 98.41 points, or 0.4%, to 26,485.01. The average had briefly fallen by 334 points.

The Nasdaq composite, which is heavily weighted with technology stocks, lost 107.05 points, or 1.3%, to 8,004.07. Smaller company stocks also fell sharply. The Russell 2000 index gave up 17.11 points, or 1.1%, to 1,533.66.

Despite the weekly loss, the major indexes are all up solidly this year, led by the Nasdaq's 20.6% gain. The S&P 500 is up nearly 17%.

Technology companies accounted for much of Friday's sell-off, which lost some strength toward the end of the day. Communications services, consumer discretionary and energy stocks also bore a big share of the losses. Investors shifted money into bonds and stocks traditionally seen as less risky: real estate and utilities.

The government's monthly jobs report hewed close to economists' expectations, showing a slowdown in hiring last month. But analysts said it was overshadowed by worries about trade and what the Fed could do about it.

The Fed cut interest rates Wednesday and Chairman Jerome Powell cited "trade policy uncertainty" as a major reason for the move. But he stopped short of promising a long cycle of rate cuts, which left investors disappointed and Trump tweeting that "as usual, Powell let us down."

The next day came Trump's tweet on tariffs, and investors now say there's a 98% probability that the Fed will cut rates again at its next meeting in September. That's up from a roughly 50% probability Wednesday afternoon.

"We just ratcheted up the trade conflict and now that makes the Fed much more likely to cut," said Randy Frederick, vice president of trading & derivatives at Charles Schwab.

Traders see low rates as steroids for stocks and other risky investments because they make bonds less attractive in comparison. By making borrowing cheaper, low rates can also help goose the economy.

But the Fed has less ammunition than in the past to cut rates because they're already historically low. The federal funds rate sits at a range of 2% to 2.25%, compared with the 5.25% perch it sat at before the Great Recession.

Rate cuts alone also may not be able to fully counteract the possible negative repercussions of the trade war.

Trade uncertainty has been weighing on business investment spending, and this latest escalation only adds to it. "It will be important to monitor business sentiment surveys to see whether there is a significant impact on the demand for workers — if businesses stop hiring, this would greatly increase the risk of a recession," UBS Global Wealth Management's Chief Investment Officer Mark Haefele said in a report.

The latest round of announced tariffs, which would go into effect Sept. 1, more directly affect U.S. consumers shopping at Wal-Mart or Target. If Trump ramps them up to 25% and keeps them there for four to six months, Morgan Stanley economists say they would expect a recession within nine months.

The concerns about the trade war and Fed have also blotted out what's been a better-than-expected earnings reporting season. Roughly three quarters of S&P 500 companies have updated investors on how much profit they made from April through June, and earnings for S&P 500 companies are on pace for a drop of 1% from a year ago. While weak, that's still better than the nearly 3% drop that analysts were earlier forecasting, according to FactSet.

Treasury yields were mixed. The 10-year yield fell to 1.85% from 1.89% late Thursday. It's close to its lowest point since Trump's election in 2016. The two-year yield held steady at 1.71%.

Markets abroad sold off more heavily in their first opportunity to trade following Trump's tariff tweet. Markets in France and Germany dropped more than 3%, while stocks in Japan and Hong Kong fell more than 2%.

U.S. crude oil rose $1.71, or 3.2%, to settle at $55.66 a barrel, recovering about a third of its plunge from the day before. Brent crude, the international standard, gained $1.39 to close at $61.89 a barrel.

Gold rose $27.70 to $1,445.60 per ounce. Silver rose 10 cents to $16.22 per ounce and copper fell 9 cents to $2.57 per pound.

Wholesale gasoline rose 3 cents to $1.78 per gallon. Heating oil climbed 4 cents to $1.89 per gallon. Natural gas fell 8 cents to $2.12 per 1,000 cubic feet.

The dollar fell to 106.55 Japanese yen from 107.33 yen on Thursday. The euro strengthened to $1.1113 from $1.1082.

4745

 

[bigdog]

Not looking good in our region today Mon 05 Aug 2019 4:02 PM (Sydney time)

 

[bigdog]

Australia's S&P/ASX 200 closed 1.9 per cent lower and Hong Kong's Hang Seng index is currently down nearly 3 per cent after equity markets baulked at China's decision to let its yuan devalue below a key level against the US dollar. Around 11.15am local time the Chinese off-shore currency, the yuan, dropped below the 7-yuan-for-$US1 for the first time.

The 200 index started sinking with first iron ore stocks and then technology stocks tumbling. The index ended the day with 178 of its 200 companies in red. The technology sector ended 5.2 per cent lower, materials 2.8 per cent lower, and industrials 2.3 per cent lower.

BHP took away 15 points with a 3.6 per cent fall to $37.38, CSL fell 2.4 per cent to $226.45, and Rio Tinto fell 3.5 per cent to $91.49. Fortescue is currently at three-month lows, falling 14.4 per cent since 31 July.

Appen closed 10.6 per cent lower at $26.87, Bellamy's closed 6.8 per cent lower at $9.12, and Afterpay Touch closed at the lowest price since 16 July after dropping 7.8 per cent.

 

[bigdog]

Thank you Donnie Boy for your stuff up and for all being red across the world!!

U.S. stocks plunged to their worst loss of the year Monday and investors around the world scrambled to sell on worries about how much President Donald Trump's worsening trade war will damage the global economy.

China let its currency, the yuan, drop to its lowest level against the dollar in more than a decade, a move that Trump railed against as "currency manipulation." It also halted purchases of U.S. farm products. The moves follow Trump's tweets from last week that threatened tariffs on about $300 billion of Chinese goods, which would extend tariffs across almost all Chinese imports.

The escalating dispute between the world's largest economies is rattling investors unnerved about a global economy that was already slowing and falling U.S. corporate profits.

The S&P 500 dropped 87.31 points, or 3%, to 2,844.74 for its worst loss since December, when the market was wrapped in the throes of recession fears. It was down as much as 3.7% in the afternoon.

The Dow Jones Industrial Average lost 767.27, or 2.9%, to 25,717.74, and the Nasdaq composite fell 278.03, or 3.5%, to 7,726.04.

"A 3% drop in a day is very significant, and you're seeing sizeable moves in every major foreign market," said Rich Weiss, chief investment officer of multi-asset strategies at American Century Investments.

"I am surprised at the market's surprise at China's retaliation," he said. "We started a fight, and when the opponent punches back, I'm not sure why we're surprised."

https://www.usnews.com/news/busines...asian-stock-tumble-after-china-lets-yuan-sink

S&P 500 Plunges in Worst Loss of Year as Trade War Escalates
U.S. stocks nosedived as China's currency fell sharply and stoked fears that the trade war between the U.S. and China will escalate further, causing more damage to the global economy.
By Associated Press, Wire Service Content Aug. 5, 2019, at 5:01 p.m.

By STAN CHOE, AP Business Writer

NEW YORK (AP) — U.S. stocks plunged to their worst loss of the year Monday and investors around the world scrambled to sell on worries about how much President Donald Trump's worsening trade war will damage the global economy.

China let its currency, the yuan, drop to its lowest level against the dollar in more than a decade, a move that Trump railed against as "currency manipulation." It also halted purchases of U.S. farm products. The moves follow Trump's tweets from last week that threatened tariffs on about $300 billion of Chinese goods, which would extend tariffs across almost all Chinese imports.

The escalating dispute between the world's largest economies is rattling investors unnerved about a global economy that was already slowing and falling U.S. corporate profits.

The S&P 500 dropped 87.31 points, or 3%, to 2,844.74 for its worst loss since December, when the market was wrapped in the throes of recession fears. It was down as much as 3.7% in the afternoon.

The Dow Jones Industrial Average lost 767.27, or 2.9%, to 25,717.74, and the Nasdaq composite fell 278.03, or 3.5%, to 7,726.04.

"A 3% drop in a day is very significant, and you're seeing sizeable moves in every major foreign market," said Rich Weiss, chief investment officer of multi-asset strategies at American Century Investments.

"I am surprised at the market's surprise at China's retaliation," he said. "We started a fight, and when the opponent punches back, I'm not sure why we're surprised."

The sell-off began Monday in Asia, where indexes lost more than 1%, and intensified as it swept westward through Europe to the Americas. Investors in search of safety herded into U.S. government bonds, which sent yields plunging.

The yield on the 10-year Treasury note, which rises with expectations of stronger economic growth and inflation, fell to its lowest level since Trump's 2016 election energized markets, down to 1.72% from 1.85% late Friday. The yield on the two-year note, which is more influenced by interest-rate moves from the Federal Reserve, sank to 1.58% from 1.71%. Both are unusually large moves.

A warning light of recession in the bond market also began shining more brightly, which traders said may have added to the selling pressure on stocks. When short-term Treasury yields are higher than long-term rates, a rule of thumb says a recession may arrive in about a year. The three-month yield was at 2.00% Monday afternoon, 0.28 percentage points higher than the 10-year's yield. A month ago, it was 0.21 points higher.

"The market sell-off is showing that there is a severe lack of confidence that this is going to work out for us economically, at least in the short term," Weiss said.

Of course, the U.S. economy is still growing, the unemployment rate remains close to its healthiest level in nearly half a century and U.S. stock indexes set record highs just over a week ago. But the escalating trade tensions and investors' disappointment that the Federal Reserve didn't commit to a lengthy series of interest-rate cuts at its meeting last week have since sent the S&P 500 on a six-day losing streak, its longest since October. The S&P 500 is 6% below its record.

"A recession is still unlikely, but the probability of it is higher, still at less than 20%," said Nate Thooft, head of global asset allocation at Manulife Investment Management.

The biggest threat coming out of the past week, he said, is that all the uncertainty about trade will scare CEOs and shoppers away from spending. That would threaten the expected ramp up in growth that economists have been expecting later this year. He expects U.S. economic growth to muddle along. It may fall as low as 1% and make things feel like a recession, he said, but a real recession remains unlikely in part because interest rates are low.

Technology stocks bore the brunt of Monday's selling, and Apple slid 5.2%. It not only depends on Chinese factories to assemble its iPhones, but China is also the only country aside from the United States that accounts for more than 10% of its sales.

Companies are in the final stretch of the latest round of quarterly earnings reports, and results haven't been as bad as initially feared, though still down from year-ago levels. Profit for companies in the S&P 500 is now expected to contract by roughly 1%. That's better than the nearly 3% drop expected earlier. More than three quarters of the S&P 500 have reported financial results.

Meat producer Tyson Foods jumped 5.1% for the biggest gain in the S&P 500 after it reported profits that were better than Wall Street expected. It was one of only 11 stocks in the S&P 500 able to eke out a gain.

Gold rose as investors sought safer ground. It added $19.00 to $1,464.60 per ounce. Silver rose 13 cents to $16.35 per ounce, and copper fell 3 cents to $2.54 per pound.

Benchmark U.S. crude fell 97 cents to settle at $54.69 a barrel. Brent crude oil, the international standard, fell $2.08 to $59.81 a barrel. Wholesale gasoline fell 6 cents to $1.72 per gallon. Heating oil declined 5 cents to $1.84 per gallon. Natural gas fell 5 cents to $2.07 per 1,000 cubic feet.

In Asia, where tensions between Seoul and Tokyo are worsening in a trade dispute entirely separate from Washington's and Beijing's, Japan's Nikkei 225 index fell 1.7%, and South Korea's Kospi lost 2.6%. The Hang Seng in Hong Kong dropped 2.9%.

In Europe, France's CAC 40 fell 2.2%, and the German DAX lost 1.8%. The FTSE 100 in London dropped 2.5%.

The dollar fell to 106.02 Japanese yen from 106.55 yen on Friday. The euro strengthened to $1.1202 from $1.1113.

4877

 

[bigdog]

Tomorrow is looking encouraging with start today of US and European trading (midnight today)

 

[bigdog]

Stocks closed broadly higher Tuesday as Wall Street regained its footing a day after the market had its biggest decline in a year.

The bounce pushed the Dow Jones Industrial Average more than 300 points higher and snapped a six-day losing streak for the market, though the benchmark S&P 500 recouped only a little more than a third of the losses from Monday.

China's decision to stabilize its currency put investors in a buying mood Tuesday. News that China allowed its currency to depreciate against the dollar to its lowest level in 11 years sparked Monday's steep stock market sell-off.

The move helped allay some of the market's jitters over the escalating dispute between the world's largest economies at a time when investors are anxious about falling U.S. corporate profits and a global economy that's showing signs of slowing.

The S&P 500 index rose 37.03 points, or 1.3%, to 2,881.77. The index dropped 3% on Monday, its worst loss since December.

The Dow climbed 311.78 points, or 1.2%, to 26,029.52. The Nasdaq composite gained 107.23 points, or 1.4%, to 7,833.27. The Russell 2000 index of smaller companies picked up 14.67 points, or 1%, to 1,502.09.

https://www.usnews.com/news/busines...follow-wall-street-lower-as-trade-war-worsens

US Stocks Notch Solid Gains as China Stabilizes Currency
Stocks closed broadly higher Tuesday as Wall Street regained its footing a day after the market had its biggest decline in a year.
By Associated Press, Wire Service Content Aug. 6, 2019, at 5:06 p.m.

By ALEX VEIGA, AP Business Writer

Stocks closed broadly higher Tuesday as Wall Street regained its footing a day after the market had its biggest decline in a year.

The bounce pushed the Dow Jones Industrial Average more than 300 points higher and snapped a six-day losing streak for the market, though the benchmark S&P 500 recouped only a little more than a third of the losses from Monday.

China's decision to stabilize its currency put investors in a buying mood Tuesday. News that China allowed its currency to depreciate against the dollar to its lowest level in 11 years sparked Monday's steep stock market sell-off.

The move helped allay some of the market's jitters over the escalating dispute between the world's largest economies at a time when investors are anxious about falling U.S. corporate profits and a global economy that's showing signs of slowing.

"We're getting a nice move here, but if you look at what the tone of the market might be for the next few days it still could be under some pressure," said Jeff Kravetz, regional investment director for U.S. Bank Wealth Management. "Right now investors are quite nervous and the reason for the nervousness is not only the trade issue, but we're also seeing weakening economic data, not only here, but overseas."

The S&P 500 index rose 37.03 points, or 1.3%, to 2,881.77. The index dropped 3% on Monday, its worst loss since December.

The Dow climbed 311.78 points, or 1.2%, to 26,029.52. The Nasdaq composite gained 107.23 points, or 1.4%, to 7,833.27. The Russell 2000 index of smaller companies picked up 14.67 points, or 1%, to 1,502.09.

Stock indexes in Europe finished sharply lower.

Investors have grown more nervous about the impact that the trade war between the U.S. and China could have on the economy and corporate profits. Those concerns have grown as the conflict heated from a simmer to a boil last week, even as both sides resumed negotiations.

But China's decision to allow its currency to stabilize Tuesday suggests Beijing might hold off from aggressively allowing the yuan to weaken as a way to respond to U.S. tariffs on Chinese goods.

That offered some hope that the sides might try to keep the situation from escalating further.

"That's a big part of why markets are not down big again today," Kravetz said.

Technology stocks, which bore the brunt of Monday's sell-off, accounted for a big share of the market's gains Tuesday.

Apple and Microsoft rose 1.9%. The companies get significant revenue from China and have been highly sensitive to swings in the ongoing trade dispute.

Financial companies also helped lift the market. Wells Fargo gained 1.7% and Bank of America rose 1.2%.

Solid earnings results helped lift other sectors. Animal health company Zoetis climbed 7.6% to lead health care stocks higher.

Retailers, communications services companies and industrial stocks also notched solid gains. Foot Locker rose 3.4%, Facebook added 1.5%. Aircraft components maker TransDigm jumped 13.7% after raising its profit forecast and delivering solid quarterly earnings.

Energy stocks dropped along with the price of crude oil.

A government report suggesting a cooling U.S. job market kept bond yields in check after an early gain. The yield on the 10-year Treasury briefly rose to 1.77%, but then declined to 1.72%, down from 1.73% late Monday.

Companies are in the final stretch of the latest round of quarterly earnings reports, and results haven't been as bad as initially feared, though still down from year-ago levels. Profit for companies in the S&P 500 is now expected to contract by roughly 1%. That's better than the nearly 3% drop expected earlier. More than three quarters of the S&P 500 have reported financial results.

International Flavors & Fragrance tumbled 15.9% after the company trimmed its forecast following a disappointing earnings report.

Take-Two Interactive Software jumped 8% on a surge in sales of "Grand Theft Auto" and other popular video games. The company, which also makes the "Red Dead Redemption" games, beat Wall Street's fiscal first quarter profit forecasts and gave investors a surprisingly good sales forecast for the current quarter.

Novartis fell 2.8% after the Federal Drug Administration disclosed that it is reviewing the accuracy of data on Zolgensma, a drug for treating spinal muscular atrophy in children. Novartis is the parent company of AveXis, which makes the drug. Several other drugmakers also fell. Mallinckrodt tumbled 12%, McKesson dropped 3.9%, AmerisourceBergen slid 5.2% and Teva Pharmaceuticals slumped 9.8%.

Benchmark crude oil fell $1.06 to settle at $53.63 a barrel. Brent crude oil, the international standard, fell 87 cents to close at $58.94 a barrel. Wholesale gasoline fell 3 cents to $1.69 per gallon. Heating oil declined 2 cents to $1.82 per gallon. Natural gas rose 4 cents to $2.11 per 1,000 cubic feet.

Gold rose $7.80 to $1,472.40 per ounce, silver rose 6 cents to $16.41 per ounce and copper rose 1 cent to $2.55 per pound.

The dollar rose to 106.52 Japanese yen from 106.02 yen on Monday. The euro weakened to $1.1200 from $1.1202.

 

[bigdog]

Stocks overcame a big loss on Wall Street Wednesday, though the market's recovery left plenty of signs of worry among investors that the fallout from the trade war between the U.S. and China will spread.

A late-afternoon rally lifted most of the major stock indexes out of the red, reversing most of the early slide that briefly pulled the Dow Jones Industrial Average down more than 580 points. Technology and consumer staples stocks powered much of the gains, offsetting losses in banks, energy companies and other sectors.

Even so, the moves in the bond and commodities markets signaled that investors are nervous that the escalating trade war between the U.S. and China may derail the global economy.

The S&P 500 index eked out a gain of 2.21 points, or 0.1%, to 2,883.98. The index had been down 2% during the heaviest bout of selling.

The Dow dropped 22.45 points, or 0.1%, to 26,007.07. It had been down as much as 589 points.

The Nasdaq led the market's upward swing, climbing 29.56 points, or 0.4%, to 7,862.83. The Russell 2000 index of smaller companies lost 1.40 points, or 0.1%, to 1,500.69.

https://www.usnews.com/news/busines...-shares-mixed-after-china-stabilizes-currency

US Stocks Erase Most of an Early Loss as Volatility Surges
Stocks overcame a big loss on Wall Street Wednesday, though the market's recovery left plenty of signs of worry among investors that the fallout from the trade war between the U.S. and China will spread.
By Associated Press, Wire Service Content Aug. 7, 2019, at 5:15 p.m.

By ALEX VEIGA and STAN CHOE, AP Business Writers

Stocks overcame a big loss on Wall Street Wednesday, though the market's recovery left plenty of signs of worry among investors that the fallout from the trade war between the U.S. and China will spread.

A late-afternoon rally lifted most of the major stock indexes out of the red, reversing most of the early slide that briefly pulled the Dow Jones Industrial Average down more than 580 points. Technology and consumer staples stocks powered much of the gains, offsetting losses in banks, energy companies and other sectors.

Even so, the moves in the bond and commodities markets signaled that investors are nervous that the escalating trade war between the U.S. and China may derail the global economy.

Bond yields sank around the world, something that happens when investors see a weaker economy and low inflation on the way. The price of oil tanked and the price of gold shot up to its highest level in six years as traders sought safe-haven holdings.

"You did see buyers come back to the market, which is a good sign for the market in the near term," said Lindsey Bell, investment strategist with CFRA Research. "Investors need to buckle in for some volatility here in the next couple of months."

The S&P 500 index eked out a gain of 2.21 points, or 0.1%, to 2,883.98. The index had been down 2% during the heaviest bout of selling.

The Dow dropped 22.45 points, or 0.1%, to 26,007.07. It had been down as much as 589 points.

The Nasdaq led the market's upward swing, climbing 29.56 points, or 0.4%, to 7,862.83. The Russell 2000 index of smaller companies lost 1.40 points, or 0.1%, to 1,500.69.

The market has been roiled the past couple of weeks by growing anxiety as the U.S. and China clash over trade.

Last week, President Donald Trump rattled markets when he promised to impose 10% tariffs next month on all Chinese imports that haven't already been hit with tariffs of 25%. China struck back on Monday, allowing its currency, the yuan, to weaken against the U.S. dollar.

China stabilized the yuan on Tuesday and that helped lift U.S. stocks a day after they endured their worst day of the year. But the markets turned volatile again early Wednesday after central banks in New Zealand, India and Thailand cut key interest rates.

The surprise rate cuts triggered a slide in bond yields around the world as investors scrambled for safety.

The yield on the 10-year Treasury touched its lowest level in nearly three years, falling as low as 1.60% from 1.74% late Tuesday, before climbing back to 1.73%. It was above 3% in late November.

Some investors saw the big drops Wednesday morning as an opportunity to buy stocks at cheaper prices.

"I see some stocks that look great that I'm buying today," said George Young, portfolio manager at Villere & Co. "I just can't make much of a case for bonds right now."

The market's turbulent turn comes less than two weeks after the benchmark S&P 500 hit an all-time high.

While investors have been scrambling to adjust to the turns in the trade conflict, the broader U.S. economy continues to grow and add jobs. Unemployment is at the lowest level in decades and consumer confidence remains strong.

Corporate earnings, meanwhile, have been coming in better than expected.

Still, the bond market continues to flash a warning signal of recession. The gap between the yield on the three-month Treasury and the 10-year Treasury widened further.

It's a rare occurrence because investors usually demand bigger yields for tying up their money for longer periods of time, and one rule of thumb says a recession may hit about a year afterward if the gap, or spread, between those two rates persists.

A three-month Treasury was yielding 0.28 percentage points more than a 10-year Treasury as of Wednesday afternoon. It was 0.36 points earlier in the day, the widest gap since the spring of 2007, less than a year before the Great Recession.

Investors are increasingly betting that the Federal Reserve will need to cut short-term interest rates to support the economy given all trade tensions, and traders see a nearly 50% chance of three cuts or more by the end of the year. A month ago, they projected that probability at less than 9%.

U.S. stocks have been on a wild ride since Jan. 22, 2018, when Trump first imposed tariffs on solar products and washing machines to help U.S. manufacturers, but they're virtually back to where they started.

The S&P 500 closed at 2,832.97 that day and has since been down as much as 17% and up as much as 7%, with moves often driven by waxing and waning worries about the trade war. The S&P 500 ended Wednesday up 1.8% from that early 2018 starting point.

Since Trump tweeted in March 2018 that "trade wars are good, and easy to win" after raising tariffs on steel and aluminum, the S&P 500 is up 7.2%, though that gain has nearly halved in the last couple weeks as worries about the trade war have surged.

Banks sustained some of the worst losses Wednesday. Lower bond yields mean lower interest rates on mortgages and other kinds of loans, which mean lower profits for banks. JPMorgan Chase fell 2.2%.

The dimming expectations for global growth also send the price of crude oil down $2.54, or 4.7%, to settle at $51.09 a barrel. Brent crude fell $2.71 to $56.23 a barrel.

Wholesale gasoline fell 7 cents to $1.62 per gallon. Heating oil declined 7 cents to $1.75 per gallon. Natural gas fell 3 cents to $2.08 per 1,000 cubic feet.

Gold rose $34.90 to $1,507.30 per ounce, silver rose 75 cents to $17.16 per ounce and copper rose 2 cents to $2.57 per pound.

The dollar fell to 105.69 Japanese yen from 106.52 yen on Tuesday. The euro strengthened to $1.1234 from $1.1200.

 

[sptrawler]

From the general inference of your post's bigdog, it would appear any solving of the trade dispute between the U.S and China, will light a fire under the market.
From your post:
The market's turbulent turn comes less than two weeks after the benchmark S&P 500 hit an all-time high.

While investors have been scrambling to adjust to the turns in the trade conflict, the broader U.S. economy continues to grow and add jobs. Unemployment is at the lowest level in decades and consumer confidence remains strong.

Corporate earnings, meanwhile, have been coming in better than expected.

There is nothing better than a nervous herd, to cause a stampede, one way or the other. There is a lot of money to be made, if you pick the right direction.

 

[bigdog]

Technology companies powered stocks broadly higher on Wall Street Thursday, driving the S&P 500 to its best day in more than two months and erasing its losses for the week.

The rally, which pushed the Dow Jones Industrial Average up by more than 370 points, followed an early rise in bonds yields after a weekly government report on unemployment claims came in better than economists had expected.

Worries that the trade dispute between the U.S. and China is hurting the global economy roiled the market earlier this week, sending many investors fleeing to safer holdings, such as U.S. government bonds. That pulled bond yields sharply lower.

The S&P 500 index rose 54.11 points, or 1.9%, to 2,938.09. The index has risen for three straight days.

The Dow Jones Industrial Average climbed 371.12 points, or 1.4%, to 26,378.19. The Nasdaq composite, which is heavily weighted with technology stocks, vaulted 176.33 points, or 2.2%, to 8,039.16. It also had its best day in more than two months and was on track to end the week with a gain.

https://www.usnews.com/news/busines...stocks-rebound-after-volatile-wall-street-day

Technology Companies Power Broad Rally for US Stocks
Technology companies powered stocks broadly higher on Wall Street Thursday driving the S&P 500 to its best day in more than two months and erasing its losses for the week.
By Associated Press, Wire Service Content Aug. 8, 2019, at 5:03 p.m.

By ALEX VEIGA, AP Business Writer

Technology companies powered stocks broadly higher on Wall Street Thursday, driving the S&P 500 to its best day in more than two months and erasing its losses for the week.

The rally, which pushed the Dow Jones Industrial Average up by more than 370 points, followed an early rise in bonds yields after a weekly government report on unemployment claims came in better than economists had expected.

Worries that the trade dispute between the U.S. and China is hurting the global economy roiled the market earlier this week, sending many investors fleeing to safer holdings, such as U.S. government bonds. That pulled bond yields sharply lower.

The absence of new worrisome turns in the U.S.-China trade tussle may have also helped keep investors in a buying mood Thursday.

"That's what the market is attuned to right now, this confirmation of fears that things are going badly," said Willie Delwiche, investment strategist at Baird. "And if you're not getting that, then stocks can stabilize, bond yields can move up a little bit."

The S&P 500 index rose 54.11 points, or 1.9%, to 2,938.09. The index has risen for three straight days.

The Dow Jones Industrial Average climbed 371.12 points, or 1.4%, to 26,378.19. The Nasdaq composite, which is heavily weighted with technology stocks, vaulted 176.33 points, or 2.2%, to 8,039.16. It also had its best day in more than two months and was on track to end the week with a gain.

Investors also favored smaller company stocks. The Russell 2000 index picked up 31.45 points, or 2.1%, to 1,532.13.

Major indexes in Europe notched solid gains.

Bond prices fell early in the day, sending yields higher. The yield on the benchmark 10-year Treasury note went as high as 1.79% before falling back to 1.72% in late trading, little changed from late Wednesday.

President Donald Trump spooked the markets last week when he threatened to impose 10% tariffs on all Chinese imports that haven't already been hit with tariffs of 25%. China retaliated on Monday and allowed its currency, the yuan, to weaken against the U.S. dollar.

China stabilized the yuan on Tuesday and that helped lift U.S. stocks following their worst day of the year. But, central banks in New Zealand, India and Thailand cut key interest rates on Wednesday, sending U.S. stocks into an early dive before recovering at the end of the day.

The last couple of weeks feel even more topsy-turvy following the months of relative calm that investors had been enjoying. Before Monday's 3% drop for the S&P 500, they hadn't seen a loss of even half that size since mid-May.

Since this bull market began over a decade ago, the S&P 500 has had 24 days where it lost at least 3%. That averages out to one every five months or so, but they don't happen in such a regular fashion.

Instead, the market tends to shift between periods of calm and sharp bursts of volatility. In 17 of the 24 times that the S&P 500 fell 3%, it either preceded or followed another such drop within a month. So Monday's 3% fall may be the precursor to more, if history is a guide.

"The foreseeable future is going to be a lot of noise," said J.J. Kinahan, chief market strategist for TD Ameritrade.

The last time the stock market had a drop of 3% was on Dec. 4, when investors were worried that the Federal Reserve was raising interest rates too aggressively and would combine with trade concerns to create a recession. But it wasn't in isolation: It was the third such drop within the span of two months.

A more extreme example is the summer of 2011, when the S&P 500 had four drops of more than 4% in just two weeks. Worries about the European debt crisis and the first-ever downgrade of the U.S. credit rating at the time were roiling markets around the world.

That episode also showed that big up days can be interspersed between big down days. That same stretch had two days where the S&P 500 surged more than 4%.

In Thursday's market rebound, stocks took their cues from the bond market.

"What really rattled people in the first part of the week was the drop in bond yields and what we saw over the course of yesterday and continue to see today is rising bond yields," Delwiche said. "That's been enough to support stocks."

Investors snapped up technology stocks in a signal that they are more willing to take on risk after several days of fleeing to safer holdings. Microsoft rose 2.7% and Oracle gained 2.5%.

In another sign that investors were feeling more bullish, safe-play sectors like utilities and makers of consumer products lagged the market. Investors usually shun those sectors when they want to take on more risk.

Uber slumped 5% in after-hours trading after the ride-hailing service's second quarter revenue fell short of Wall Street's forecasts. Rival Lyft rose 3% a day after its quarterly results topped analysts' estimates and the company raised its revenue forecast for the year.

Kraft skidded 8.6% after the maker of Oscar Mayer, Cool Whip and other products revealed a sharp profit plunge in the first half of the year and some hefty charges.

Benchmark crude oil rose $1.45 to settle at $52.54 a barrel. Brent crude oil, the international standard, rose $1.15 to close at $57.38 a barrel. Wholesale gasoline rose 3 cents to $1.65 per gallon. Heating oil rose 2 cents to $1.78 per gallon. Natural gas rose 5 cents to $2.13 per 1,000 cubic feet.

Gold fell $9.60 to $1,497.70 per ounce, silver lost 26 cents to $16.90 per ounce and copper rose 4 cents to $2.60 per pound.

The dollar fell to 105.95 Japanese yen from 106.12 yen on Tuesday. The euro fell to $1.1185 from $1.1214.

 

[bigdog]

Stocks stumbled Friday as worries flared yet again that President Donald Trump's trade war with China may be worsening. It was a fitting end to a wild week where markets zoomed down, up and down again as investors recalibrated by the minute how much the tensions will hurt the global economy.

The S&P 500 dropped as much as 1.3% Friday after Trump said that it would be "fine" if a meeting on trade with China next month doesn't happen, before nearly eliminating the loss. It dropped again in the final minutes of trading and ended the day at 2,918.65, down 19.44 points, or 0.7%.

The Dow Jones Industrial Average fell 90.75, or 0.3%, to 26,287.44, and the Nasdaq lost 80.02, or 1%, to 7,959.14.

Dow chart compared to ^AORD

https://www.usnews.com/news/busines...res-mixed-following-broad-rally-for-us-stocks

Stocks Fall Again on Trade-War Worries, Capping a Wild Week
Stocks stumbled Friday as worries flared yet again that President Donald Trump's trade war with China may be worsening. It was a fitting end to a wild week.
By Associated Press, Wire Service Content Aug. 9, 2019, at 5:04 p.m.

By STAN CHOE and ALEX VEIGA, AP Business Writers

NEW YORK (AP) — Stocks stumbled Friday as worries flared yet again that President Donald Trump's trade war with China may be worsening. It was a fitting end to a wild week where markets zoomed down, up and down again as investors recalibrated by the minute how much the tensions will hurt the global economy.

The S&P 500 dropped as much as 1.3% Friday after Trump said that it would be "fine" if a meeting on trade with China next month doesn't happen, before nearly eliminating the loss. It dropped again in the final minutes of trading and ended the day at 2,918.65, down 19.44 points, or 0.7%.

The Dow Jones Industrial Average fell 90.75, or 0.3%, to 26,287.44, and the Nasdaq lost 80.02, or 1%, to 7,959.14.

To anyone not paying attention, the numbers could paint the last week as a ho-hum one for markets: The S&P 500 was down just 0.5%. But that stretch included the worst plunge of the year for the S&P 500, as well as its best day in months.

Through the week, investors' mood pinballed from fear that China was raising the stakes in the trade war by weakening its currency to relief that the yuan's drop wasn't more sharp and back to concern that the U.S. and China may not even meet next month to talk about their problems. All of that was follow-up to Trump's threat last week to impose more tariffs on Chinese goods.

Underscoring the uncertainty, investors said they had no good explanations for some of the sharp swings that stocks had over the last week. While nowhere near as bad as it got during the Great Recession, investors' fear about the uncertain path forward for corporate profits and the global economy sent gold prices jumping and bond yields tumbling.

"We don't really see an end to the uncertainty any time soon," said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute. Beyond the U.S.-China trade war, he also pointed to the upcoming U.S. elections, the pending British exit from the European Union and a completely separate trade war between South Korea and Japan, among other things.

"Unfortunately, it's tough to tell whether we're at peak uncertainty, but the level of uncertainty is high. What's remarkable is how close the markets still are to their all-time highs despite all the uncertainty."

The S&P 500 is only 2.1% below its record, which was set at the end of July. It's also up 9% since Trump said in March 2018 that "trade wars are good, and easy to win."

The economy is still growing, and the unemployment rate remains near its lowest level in half a century. The fear is that all the uncertainty that has caused stock prices to swing sharply could also make businesses and shoppers more cautious. If they pull back on their spending, it could lead to weaker profits for companies, which could cause businesses to cut back on hiring, which could do real damage to the economy.

Such fear has been most pronounced in the bond market, where yields have tumbled as investors scrambled for protection. When bond prices rise, their yields fall, and the yield on the 10-year Treasury sat at 1.73% Friday, down from 1.85% a week ago. It rose from 1.71% late Thursday and had been below 1.60% in the middle of the week.

"The bond market has been pricing that in way earlier and to a much greater degree than the stock market has," Tom Martin, senior portfolio manager with Globalt Investments, said of the trade-war threat.

Other areas of the world are facing even weaker economic growth, and the British government reported that its economy shrank in the second quarter for the first time since 2012.

The FTSE 100 in London slipped 0.4%, while Germany's DAX lost 1.3% and the CAC 40 in France dropped 1.1%. In Asia, the Hang Seng in Hong Kong fell 0.7%, Japan's Nikkei 225 rose 0.4% and South Korea's Kospi gained 0.4%.

In the commodities markets, benchmark U.S. crude jumped $1.96 to settle at $54.50 a barrel. It had dropped as low as $50.52 earlier in the week amid worries that a weaker global economy would dent demand for energy. Brent crude, the international standard, rose $1.15 to $58.53 per barrel.

Gold edged down by $1.10 to $1,496.60 per ounce. It was a relatively quiet day following a roaring week, where gold hit its highest price in more than six years as investors scrambled for safety.

Silver was unchanged at $16.90 per ounce, and copper fell 2 cents to $2.58 per pound. Wholesale gasoline rose 2 cents to $1.67 per gallon. Heating oil climbed 3 cents to $1.81 per gallon. Natural gas fell 1 cent to $2.12 per 1,000 cubic feet.

The dollar slipped to 105.57 Japanese yen from 105.95 yen late Thursday. The euro strengthened to $1.1207 from $1.1185, and the British pound fell to $1.2056 from $1.2133.

5077

 

[bigdog]

Stocks fell sharply on Wall Street Monday, knocking nearly 400 points off the Dow Jones Industrial Average.

The benchmark S&P 500 had its worst day in a week as the sell-off put the market deeper into the red for August. The selling was widespread, with technology companies and banks accounting for a big share of the decline.

Investors sought safety in U.S. government bonds, sending their yields tumbling. The price for gold, another traditional safe-haven asset, closed higher.

The latest wave of anxious selling left the S&P 500 index down 35.56 points, or 1.2%, at 2,883.09. The Dow fell 389.73 points, or 1.5%, to 25,897.71. The average was briefly down 462 points.

The Nasdaq composite dropped 95.73, or 1.2%, to 7,863.41. The Russell 2000 index of smaller company stocks lost 18.58 points, or 1.2%, to 1,494.46.

Singapore was closed for holiday

https://www.usnews.com/news/busines...asian-stocks-rise-as-trade-war-worries-worsen

Dow Slumps Nearly 400 Points as Trade War Anxiety Lingers
Stocks fell sharply on Wall Street Monday, knocking nearly 400 points off the Dow Jones Industrial Average.
By Associated Press, Wire Service Content Aug. 12, 2019, at 5:47 p.m.

By ALEX VEIGA, AP Business Writer

Stocks fell sharply on Wall Street Monday, knocking nearly 400 points off the Dow Jones Industrial Average.

The benchmark S&P 500 had its worst day in a week as the sell-off put the market deeper into the red for August. The selling was widespread, with technology companies and banks accounting for a big share of the decline.

Investors sought safety in U.S. government bonds, sending their yields tumbling. The price for gold, another traditional safe-haven asset, closed higher.

The costly trade war between the U.S. and China has rattled markets this month. An escalation in tensions between the world's largest economies has stoked worries that the long-running trade conflict will undercut an already slowing global economy.

"Trade and the concern that as this escalates it continues to wear on confidence to a point that this actually causes a recession, that's what people are wrestling with," said Ben Phillips, chief investment officer at EventShares.

The latest wave of anxious selling left the S&P 500 index down 35.56 points, or 1.2%, at 2,883.09. The Dow fell 389.73 points, or 1.5%, to 25,897.71. The average was briefly down 462 points.

The Nasdaq composite dropped 95.73, or 1.2%, to 7,863.41. The Russell 2000 index of smaller company stocks lost 18.58 points, or 1.2%, to 1,494.46.

The major indexes are down more than 3% for August. Even after this month's stumble, they are up solidly this year, led by the Nasdaq with a gain of 18.5%. The S&P 500 is up 15%, though it's down 4.7% from its all-time high set at the end of July.

Anxiety and fear over the U.S.-China trade war continues to hover over the market and has taken stocks on a wild ride in August.

The S&P 500 index zoomed up and down last week, ending with its second straight weekly loss. The wild swings follow President Donald Trump's threat to impose more tariffs on Chinese goods, followed by China's move to allow its currency to weaken.

Trump has promised 10% tariffs on some $300 billion in Chinese imports that haven't already been hit with tariffs of 25%. The new tariff would go into effect Sept. 1 and more directly affect U.S. consumers.

Last week, Trump said he'd be "fine" if the U.S. and China don't go ahead with a meeting next month, dampening investors' hopes for a path to resolving the economically damaging trade war.

The longer the trade conflict drags on, the more it has the potential to threaten the weakening global economy by discouraging trade and causing businesses to pull capital spending plans on hold. The International Monetary Fund expects world trade to slow in 2019 for a second straight year.

"We're hearing from management teams that there's just caution on investing, especially globally," Phillips said. "Multinationals are being very cautious. ... Their view is if the rest of the world slows down, the U.S. won't be insulated from that."

Traders continued to shift money into bonds Monday, sending bond prices sharply higher. That pulled down the yield on the 10-year Treasury to 1.64% from 1.73% late Friday, a big move. The yield is used as a benchmark for interest rates on mortgages and other consumer loans.

The drop in bond yields weighed on financial sector stocks. Bank of America fell 2.4% and Citigroup gave up 2.7%. Credit card issuer Synchrony Financial slid 3.9% and Capital One Financial dropped 2.3%.

Technology, health care and consumer discretionary sector stocks accounted for much of the market's decline. Symantec dropped 5.7%, Nektar Therapeutics slumped 11.2% and Tractor Supply fell 4.7%.

Real estate and utilities stocks posted the smallest declines. Traders usually seek the shelter of utilities and bonds when they want a more secure place to put their money because of concerns over economic growth.

Sysco rose 3.1% after the food distributor beat Wall Street's fiscal fourth quarter profit forecasts. The company's revenue edged higher on growth from its U.S. operations.

Shares in Viacom and CBS fell amid published reports suggesting the entertainment companies are close to a merger deal. Viacom slid 4.9% and CBS lost 1.8%.

Major stock markets outside the U.S. were mixed Monday, with indexes in Europe closed broadly lower while those in Asia ended broadly higher.

Hong Kong's Hang Seng lagged and shed 0.4% as that city continues to deal with increased tensions from pro-democracy protests. The Hong Kong airport shut down on Monday when thousands of demonstrators occupied its main terminal.

Stocks in Argentina plummeted and the Argentinian peso fell sharply following a primary victory for a populist ticket in the nation's presidential elections. The nation is in a deep economic crisis and the potential for a drastic change in leadership is rattling investors there.

Matías Carugati, chief economist for Management & Fit, said the victory of the populist Alberto Fernández team would put "sustained" pressure on the exchange rate and stocks due to the prospect that the nation could shift course to a more state-interventionist course for the economy.

Investors are facing a relatively slow week as far as economic reports and corporate earnings. The Labor Department will release its consumer price index for July on Tuesday and Commerce Department will release last month's retail sales results on Thursday.

Macy's reports quarterly results on Wednesday and Walmart will report results on Thursday. They are among the last major companies to report their earnings for the latest quarter.

Energy futures were mixed. Benchmark crude oil rose 43 cents to settle at $54.93 a barrel. Brent crude oil, the international standard, added 4 cents to close at $58.57 a barrel.

Wholesale gasoline was unchanged at $1.67 per gallon. Heating oil was also unchanged at $1.81 per gallon. Natural gas fell 1 cent to $2.12 per 1,000 cubic feet.

Gold rose $8.70 to $1,505.30 per ounce, silver rose 14 cents to $17.04 per ounce and copper was unchanged at $2.58 per pound.

The dollar fell to 105.27 Japanese yen from 105.57 yen on Friday. The euro strengthened to $1.1219 from $1.1207.

 

[bigdog]

And back up goes the stock market.

Investors flipped back into buying mode Tuesday after the U.S. said it would hold off on tariffs of Chinese imports of mobile phones, toys and several other items typically on holiday shopping lists. China also said the two sides held discussions on trade overnight and would talk again the next two weeks.

The latest turn in the U.S.-China trade war helped the market make up much of the losses from the previous two days, snapping a two day losing streak for the S&P 500.

The benchmark index rose 43.23 points, or 1.5%, to 2,926.32. It had been up as much as 2.1%. The Dow Jones Industrial Average gained 372.20 points, or 1.4%, to 26,279.91. The average briefly climbed 519 points.

The Nasdaq composite jumped 152.95 points, or 1.9%, to 8,016.36. The Russell 2000 index of smaller company stocks rose 16.30 points, or 1.1%, to 1,510.58. Oil and copper prices surged.

https://www.usnews.com/news/busines...follow-wall-street-lower-on-trade-war-jitters

Stocks Rebound on US Plan to Delay Some China Tariffs
Stocks notched solid gains Tuesday after the U.S. said it would hold off on tariffs of Chinese imports of mobile phones, toys and several other items typically on holiday shopping lists.
By Associated Press, Wire Service Content Aug. 13, 2019, at 4:49 p.m.

By STAN CHOE and ALEX VEIGA, AP Business Writers

And back up goes the stock market.

Investors flipped back into buying mode Tuesday after the U.S. said it would hold off on tariffs of Chinese imports of mobile phones, toys and several other items typically on holiday shopping lists. China also said the two sides held discussions on trade overnight and would talk again the next two weeks.

The latest turn in the U.S.-China trade war helped the market make up much of the losses from the previous two days, snapping a two day losing streak for the S&P 500.

The benchmark index rose 43.23 points, or 1.5%, to 2,926.32. It had been up as much as 2.1%. The Dow Jones Industrial Average gained 372.20 points, or 1.4%, to 26,279.91. The average briefly climbed 519 points.

The Nasdaq composite jumped 152.95 points, or 1.9%, to 8,016.36. The Russell 2000 index of smaller company stocks rose 16.30 points, or 1.1%, to 1,510.58. Oil and copper prices surged.

"Maybe today is a little bit too exaggerated because it was a little glimmer of hope about tariffs," said Karyn Cavanaugh, senior markets strategist at Voya Investment Management. "However, the drama with China and trade is not over."

The markets have been in the spin cycle since President Donald Trump announced on Aug. 1 that he would impose 10% tariffs on about $300 billion in Chinese imports, which would be on top of 25% tariffs already in place on $250 billion of imports. The threat dashed hopes that a resolution may come soon in the trade war between the world's two largest economies, and investors have grown increasingly concerned that it may drag on through the U.S. elections in 2020.

On Tuesday, The Office of the U.S. Trade Representative said it would delay the tariffs on some products, including popular consumer goods, until Dec. 15. A few other products were removed altogether, including certain types of fish and baby seats.

Technology sector stocks, which have been among the biggest losers during heavy selling days this month, led the broad market rebound Tuesday. Health care companies, retailers and banks also notched solid gains. Real estate and utilities lagged the broader market as investors regained their appetite for riskier assets.

While stocks rallied Tuesday, there are still signs of investor caution. Treasury yields have sunk, and gold prices have jumped as investors searched for safety on worries the trade war could knock the U.S. economy back into recession for the first time in a decade. The yield on the 10-year Treasury rose Tuesday, but it remains below its level when Trump's 2016 election invigorated markets. Gold fell just 0.2% and remains near a six-year high.

Retailers were some of Tuesday's best performers because the delay in tariffs means they won't have to raise prices on toys, clothing and other items during the holiday shopping season, the most important months of the year for the industry. Best Buy jumped 6.5%, one of the biggest gains in the S&P 500, and Dollar Tree rose 4% for its best day since March.

"This is a huge relief for retailers for the holiday 2019 season, but the larger issue isn't over," said Ken Perkins, president of RetailMetrics, a retail research firm. "Retailers better be planning to diversify their sourcing even though they're getting some short-term relief."

Other companies that have a lot riding on strong holiday sales, as well as a dependence on China for producing their goods, were also among the market's leaders. Apple climbed 4.2%, Micron Technology added 4.8% and Hasbro gained 2.7%.

CBS and Viacom rose after the companies announced they have reached a deal to combine into a company named ViacomCBS. The long-anticipated combination brings together the television networks and the Paramount movie studio as traditional media giants bulk up to challenge streaming companies like Netflix. CBS gained 1.4% and Viacom rose 2.4%.

Bonds fell and the yield on the two-year Treasury jumped, partially due to the trade-war developments and partially because inflation was higher than economists expected last month. The inflation report may give the Federal Reserve less leeway to cut interest rates to help the economy.

The 10-year Treasury yield, meanwhile, rose by a smaller margin, to 1.69% from 1.64% late Monday. That leaves the 10-year Treasury yielding just 0.02 percentage points more than a two-year Treasury. When that difference goes negative, investors see it as a warning signal that a recession may be coming. And the gap is now close to its lowest level since the summer of 2007, about six months before the Great Recession struck.

"What it's telling us is global growth is meager," Cavanaugh said.

Stock markets overseas turned higher following the U.S. and Chinese announcements on trade. The French CAC 40 jumped 1% after being down for most of the day. The German DAX rose 0.6%, and the FTSE 100 in London added 0.3%.

Asian markets had already closed before the announcements, and Japan's Nikkei 225 index dropped 1.1%. The Hang Seng lost 2.1% in Hong Kong, where pro-democracy protests crippled Hong Kong's airport for a second day. The Chinese government cast an ominous shadow over the growing protests by calling them "sprouts of terrorism" and raised concerns over how it may respond.

Commodities prices also surged on expectations that easing U.S.-China trade tensions could lead to healthier demand. Benchmark U.S. crude rose $2.17, or 4%, to $57.10 per barrel. Brent crude, the international standard, gained $2.73 to $61.30.

Wholesale gasoline rose 7 cents to $1.74 per gallon. Heating oil climbed 7 cents to $1.88 per gallon. Natural gas rose 3 cents to $2.15 per 1,000 cubic feet.

Copper rose 4 cents, or 2%, to $2.62 a pound.

Gold dipped $3.10 to $1,502.20 per ounce and silver fell 8 cents to $16.96 per ounce.

The dollar rose to 106.68 Japanese yen from 105.27 yen on Monday. The euro weakened to $1.1174 from $1.1219.

184

 

[bigdog]

According to the latest SPI futures, the ASX 200 index is expected to open the day 135 points or 2.1% lower this morning.

The threat of a recession doesn't seem so remote anymore for investors in financial markets.

The yield on the closely watched 10-year Treasury fell so low Wednesday that, for the first time since 2007, it briefly crossed a threshold that has correctly predicted many past recessions. Weak economic data from Germany and China also fanned fears of a global slowdown.

That spooked investors, who responded by dumping stocks, sending the Dow Jones Industrial Average into an 800-point skid, its biggest drop of the year. The S&P 500 index dropped nearly 3% as the market erased all of its gains from a rally the day before. Tech stocks and banks led the broad sell-off. Retailers came under especially heavy selling pressure after Macy's issued a dismal earnings report and cut its full-year forecast.

Investors have been plowing money into the safety of U.S. government bonds for months amid growing anxiety that weakness in the global economy could sap growth in the U.S. Uncertainty about the outcome of the U.S. trade war with China has spurred a return of volatility to the stock market in August — the Dow has dropped more than 5% and the S&P 500 is down more than 4%.

The S&P 500 fell 85.72 points, or 2.9%, to 2,840.60. The Dow sank 800.49 points, or 3%, to 25,479.42. The Nasdaq composite lost 242.42 points, or 3%, to 7,773.94. The Russell 2000 index of smaller company stocks slid 43.05 points, or 2.8%, to 1,467.52.

The losses come a day after stocks rallied when the Trump administration delayed tariffs on about $160 billion in Chinese goods that were set to take effect on Sept. 1.

https://www.usnews.com/news/busines...s-rise-on-us-plan-to-delay-some-china-tariffs

Dow Slumps 800 Points After Bonds Flash Recession Warning
The threat of a recession doesn't seem so remote anymore.
By Associated Press, Wire Service Content Aug. 14, 2019, at 5:21 p.m.

By STAN CHOE and ALEX VEIGA, AP Business Writers

The threat of a recession doesn't seem so remote anymore for investors in financial markets.

The yield on the closely watched 10-year Treasury fell so low Wednesday that, for the first time since 2007, it briefly crossed a threshold that has correctly predicted many past recessions. Weak economic data from Germany and China also fanned fears of a global slowdown.

That spooked investors, who responded by dumping stocks, sending the Dow Jones Industrial Average into an 800-point skid, its biggest drop of the year. The S&P 500 index dropped nearly 3% as the market erased all of its gains from a rally the day before. Tech stocks and banks led the broad sell-off. Retailers came under especially heavy selling pressure after Macy's issued a dismal earnings report and cut its full-year forecast.

Investors have been plowing money into the safety of U.S. government bonds for months amid growing anxiety that weakness in the global economy could sap growth in the U.S. Uncertainty about the outcome of the U.S. trade war with China has spurred a return of volatility to the stock market in August — the Dow has dropped more than 5% and the S&P 500 is down more than 4%.

Economic data from two of the world's biggest economies added to investors' fears Wednesday. European markets fell after Germany's economy contracted 0.1% in the spring due to the global trade war and troubles in the auto industry. In China, the world's second-largest economy, growth in factory output, retail spending and investment weakened in July.

"The bad news for global economies is stacking up much faster than most economists thought, so trying to keep up is exhausting," Kevin Giddis, head of fixed income capital markets at Raymond James, wrote in a report.

The S&P 500 fell 85.72 points, or 2.9%, to 2,840.60. The Dow sank 800.49 points, or 3%, to 25,479.42. The Nasdaq composite lost 242.42 points, or 3%, to 7,773.94. The Russell 2000 index of smaller company stocks slid 43.05 points, or 2.8%, to 1,467.52.

The losses come a day after stocks rallied when the Trump administration delayed tariffs on about $160 billion in Chinese goods that were set to take effect on Sept. 1.

While the market was falling Wednesday, President Donald Trump took to Twitter to again criticize the Federal Reserve for hampering the U.S. economy by raising rates "far too quickly" last year and not reversing its policy aggressively enough — the Fed cut its key rate by a quarter point last month. He also defended his trade policy, even though investors remain worried that the trade war between the world's two largest economies may drag on through the 2020 U.S. election and cause more economic damage.

"We still see a substantial risk that the trade dispute will escalate further," said Mark Haefele, global chief investment officer at UBS in a note to clients.

Traders tend to plow money into ultra-safe U.S. government bonds when they're fearful of an economic slowdown, and that sends yields lower. The yield on the 10-year Treasury has dropped from 2.02% on July 31 to below 1.60%.

On Wednesday, it briefly fell below the two-year Treasury's yield for the first time since 2007. Each of the last five times the two-year and 10-year Treasury yields have inverted, a recession has followed. The average amount of time is around 22 months, according to Raymond James' Giddis. The indicator isn't perfect, though, and has given false signals in the past.

After its early dip, the yield on the 10-year Treasury stood at 1.58%, even with the yield on the two-year. Meanwhile, the 30-year Treasury yield also hit a record low Wednesday.

Other parts of the yield curve have already inverted, beginning late last year. But each time, some market watchers cautioned not to make too much of it. Some say the yield curve may be a less reliable indicator this time because technical factors may be distorting longer-term yields, such as negative bond yields abroad and the Federal Reserve's holdings of $3.8 trillion in Treasurys and other investments on its balance sheet.

With bond yields falling, banks took heavy losses Wednesday. Lower bond yields are bad for banks because they force interest rates on mortgages and other loans lower, which results in lower profits for banks. Citigroup sank 5.3% and Bank of America gave up 4.7%.

Macy's plunged 13.2%, the sharpest loss in the S&P 500, after it slashed its profit forecast for the year. The retailer's profit for the latest quarter fell far short of analysts' forecasts as it was forced to slash prices on unsold merchandise. The grim results from Macy's sent other retailers sharply lower, too. Nordstrom sank 10.6% and Kohl's dropped 11%.

Energy stocks also sank sharply, hurt by another drop in the price of crude oil on worries that a weakening global economy will drag down demand. National Oilwell Varco slumped 8% and Schlumberger skidded 6.6%.

The price of benchmark U.S. crude slid $1.87, or 3.3%, to settle at $55.23 per barrel. Brent crude, the international standard, dropped $1.82 to close at $59.48.

Wholesale gasoline fell 6 cents to $1.68 per gallon. Heating oil declined 4 cents to $1.84 per gallon. Natural gas fell 1 cent to $2.14 per 1,000 cubic feet.

Gold gained $13.70 to $1,515.90 per ounce, close to a six-year high. Investors also bid up shares in mining company Newmont Goldcorp 0.8%.

Silver rose 29 cents to $17.25 per ounce and copper fell 3 cents to $2.59 per pound.

The dollar fell to 105.88 Japanese yen from 106.68 yen on Tuesday. The euro weakened to $1.1137 from $1.1174.

Overseas, Germany's DAX dropped 2.3% following the weak German economic data. France's CAC 40 fell 2.2%, and the FTSE 100 in London lost 1.7%.

In Asia, Japan's Nikkei 225 rose 1%, the Kospi in South Korea gained 0.7% and the Hang Seng in Hong Kong added 0.1%.