NYSE Dow Jones finished today at:

[bigdog]

Stocks rallied worldwide Monday as governments prepare to gradually lift restrictions they imposed on businesses to slow the sweep of the coronavirus pandemic.

With governments making moves toward letting businesses reopen, stocks rallied worldwide on Monday to kick off a busy week for markets.

From Rome, Georgia, to Rome, Italy, companies are watching as politicians detail plans to ease up on restrictions that were meant to slow the coronavirus pandemic but also erased businesses and jobs. Retail chains, cruise lines and other businesses whose profits hinge on people stepping outside their homes jumped to some of Monday’s biggest gains. The S&P 500 climbed 1.5%.

This week is chockablock with potentially market-moving events, including meetings for several of the world’s largest central banks. Nearly a third of the companies in the S&P 500 are also scheduled to report how profitable they were in the first three months of 2020 and, more importantly, perhaps talk about how they see future conditions shaking out.

With central banks and governments promising overwhelming amounts of aid for markets, some investors are looking beyond the economic devastation currently sweeping the world. They’re focusing instead on the potential return of growth as the outbreak levels off in some areas.

Treasury yields pushed higher in an indication of less pessimism in the market, but crude tanked again in the latest extreme swing that’s dominated oil markets in recent weeks.

The S&P 500 rose 41.74 points to 2,878.48. The Dow Jones Industrial Average gained 358.51, or 1.5%, to 24,133.78, and the Nasdaq climbed 95.64, or 1.1%, to 8,730.16.

Monday’s gains were widespread and accelerated though the day. At the head of the pack were some of the stocks hardest and earliest hit by the coronavirus pandemic.

Banks and other financial companies rose 3.6% for the biggest gain among the 11 sectors that make up the S&P 500. They had tumbled earlier on worries about waves of households and businesses defaulting on their loans.

ASX 200 expected to rise.
The ASX 200 looks set to continue its positive run on Tuesday after a positive night of trade on Wall Street. According to the latest SPI futures, the ASX 200 index is expected to open 10 points or 0.2% higher this morning. On Wall Street the Dow Jones climbed 1.5%, the S&P 500 rose 1.5%, and the Nasdaq index pushed 1.1% higher.

https://www.usnews.com/news/busines...kets-gain-as-more-economies-prepare-to-reopen


Stocks up Worldwide as Governments Eye Reopening Economies
Stocks rallied worldwide Monday as governments prepare to gradually lift restrictions they imposed on businesses to slow the sweep of the coronavirus pandemic.
By Associated Press, Wire Service Content April 27, 2020, at 4:57 p.m

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

With governments making moves toward letting businesses reopen, stocks rallied worldwide on Monday to kick off a busy week for markets.

From Rome, Georgia, to Rome, Italy, companies are watching as politicians detail plans to ease up on restrictions that were meant to slow the coronavirus pandemic but also erased businesses and jobs. Retail chains, cruise lines and other businesses whose profits hinge on people stepping outside their homes jumped to some of Monday’s biggest gains. The S&P 500 climbed 1.5%.

This week is chockablock with potentially market-moving events, including meetings for several of the world’s largest central banks. Nearly a third of the companies in the S&P 500 are also scheduled to report how profitable they were in the first three months of 2020 and, more importantly, perhaps talk about how they see future conditions shaking out.

With central banks and governments promising overwhelming amounts of aid for markets, some investors are looking beyond the economic devastation currently sweeping the world. They’re focusing instead on the potential return of growth as the outbreak levels off in some areas.

Treasury yields pushed higher in an indication of less pessimism in the market, but crude tanked again in the latest extreme swing that’s dominated oil markets in recent weeks.

The S&P 500 rose 41.74 points to 2,878.48. The Dow Jones Industrial Average gained 358.51, or 1.5%, to 24,133.78, and the Nasdaq climbed 95.64, or 1.1%, to 8,730.16.

“We’re in recession, it’s a long recovery from here,” said Joe Seydl, capital markets economist at J.P. Morgan Private Bank. But the distance between those two points “is starting to look a little bit better than a few weeks ago because it looks like we’re past the worst of it.”

Monday’s gains were widespread and accelerated though the day. At the head of the pack were some of the stocks hardest and earliest hit by the coronavirus pandemic.

Banks and other financial companies rose 3.6% for the biggest gain among the 11 sectors that make up the S&P 500. They had tumbled earlier on worries about waves of households and businesses defaulting on their loans.

The reopening of some businesses in Georgia and other states, along with a slowdown in hospitalizations in the hardest-hit state of New York, helped revive financial stocks. So did a rise in Treasury yields, which mean bigger profits for making loans. The sector is still down 26.9% for the year.

Retail chains and real-estate investment trusts that own shopping malls also recovered some of their earlier losses as investors looked toward a future where people visit stores again. Even travel-related stocks, which fell before the rest of the market on worries about the coronavirus outbreak, were strong.

Stocks of smaller companies jumped more than the rest of the market. With smaller financial buffers, small-cap stocks often get punished more than their bigger rivals when investors are anticipating downturns, but they can also rise faster during rebounds. The Russell 2000 of small-cap stocks rose 4%.

The market’s big recent gains, though, are built more on hope for improving conditions than on anything certain. Some investors are worried that reopenings of businesses, if done hastily, could lead to a second wave of infections, and many warn that it’s still too uncertain how long this recession will last.

“The sense I get is people are not going to be comfortable with life as usual,” said Marc Chaikin, founder of Chaikin Analytics. “It’s a big leap of faith to expect that earnings are going to go back to pre-2020 levels.”

Even if the economy is past the worst of its downturn, “it’s going to be a long way back from where we were in 2019,” said Seydl of J.P. Morgan Private Bank.

Markets began Monday with jumps in Asia after Japan’s central bank scrapped its ceiling on how much government debt it will buy to support the economy. Japan’s Nikkei 225 rose 2.7%, while South Korea’s Kospi added 1.8% and the Hang Seng in Hong Kong added 1.9%.

In Europe, Italy laid out a timetable for easing restrictions, and other countries are set to detail their plans soon. The German DAX climbed 3.1%, while the French CAC 40 rose 2.5% and the FTSE 100 in London added 1.6%.

In the U.S., roughly 150 companies in the S&P 500 are scheduled to report earnings this week. That includes the Big Five of Amazon, Apple, Facebook, Microsoft and Google’s parent, Alphabet, which together make up about a fifth of the index.

The yield on the 10-year Treasury rose to 0.65% from 0.59% late Friday. It’s still well below the 1.90% level it was near at the start of the year, though. Yields tend to drop when investors are downgrading their expectations for the economy and inflation.

In energy markets, the cost for a barrel of U.S. oil to be delivered in June fell $4.16, or 24.6%, to settle at $12.78 a barrel. Brent crude, the international standard, fell $1.45, or 6.8%, $19.99 a barrel.

Prices have been swinging wildly as demand for energy collapses and storage tanks come close to topping out.

“There’s a huge oversupply we’ve been left with due to the incredibly sharp drop in consumption,” said Richard Swann, editorial director for Americas oil markets at S&P Global Platts.

 

[bigdog]

Wall Street jostled to a mixed finish Tuesday, as former stalwarts ran out of momentum and some of the market’s most beaten-down stocks turned into winners.

The S&P 500 slipped 0.5% after stocks that have held up the best through this year’s sell-off fell to some of the market’s sharpest drops. They included health care companies, big tech titans and winners of the stay-at-home economy, such as Netflix and Amazon.

Those are big companies, which give their movements outsized effect on the S&P 500. But nearly twice as many stocks rose in the index than fell. Among the winners were travel companies, shopping-mall owners and other businesses that got hammered after widespread stay-at-home orders locked away their customers. Some U.S. states and nations around the world are gradually lifting restrictions implemented to slow the spread of the coronavirus outbreak.

All the washing around left the S&P 500 with a loss of 15.09 points to 2,863.39, its first in three days. The index was up as much as 1.5% early in the morning before it quickly gave out, and the index spent much of the day flipping between small gains and losses.

It coincided with another wild day for oil prices, where a barrel of U.S. oil for delivery in June fell close to $10 before paring its losses, as swelling supplies continue to far exceed demand.

The fluctuations are a sign of a market still dominated by uncertainty about how the recession caused by the coronavirus outbreak will play out, said Tom Martin, senior portfolio manager at Globalt Investments.

“The market is kind of biding its time, in a sense, and waiting to see what happens with regard to the virus itself,” he said. “Because the thing that matters the most to stocks is how much longer is this going to last. And sure, we can reopen, but how slow is that going to be? And even if it becomes more rapid, is there going to be a second wave or a resurgence” of infections?

Like the stocks within the market, the day’s leaderboard for U.S. indexes was close to a mirror opposite of their performance for the year so far.

The Nasdaq, which is dominated by big tech stocks and is the only major U.S. index up over the last year, fell 122.43, or 1.4%, to 8,607.73. The Russell 2000, which got beat up more than the rest of the market on worries about small companies’ financial strength, climbed 16.20, or 1.3%, to 1,298.08.

The Dow Jones Industrial Average slipped 32.23 points, or 0.1%, to 24,101.55. It, like other indexes, gave up its gains after a report in the morning showed U.S. consumer confidence fell to its lowest level in nearly six years.

ASX 200 expected to rise.
According to the latest SPI futures, the ASX 200 index is expected to push higher this morning. Current futures contracts are pointing to a rise of 16 points or 0.3% at the open. This is despite a weak night of trade on Wall Street. The Dow Jones fell 0.1%, the S&P 500 dropped 0.5%, and the Nasdaq index tumbled 1.4% lower.

https://apnews.com/f3c24dcc58f0c775c4ce5ab1d24f5d28

Slumping tech favorites pull major US stock indexes lower
By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA

Wall Street jostled to a mixed finish Tuesday, as former stalwarts ran out of momentum and some of the market’s most beaten-down stocks turned into winners.

The S&P 500 slipped 0.5% after stocks that have held up the best through this year’s sell-off fell to some of the market’s sharpest drops. They included health care companies, big tech titans and winners of the stay-at-home economy, such as Netflix and Amazon.

Those are big companies, which give their movements outsized effect on the S&P 500. But nearly twice as many stocks rose in the index than fell. Among the winners were travel companies, shopping-mall owners and other businesses that got hammered after widespread stay-at-home orders locked away their customers. Some U.S. states and nations around the world are gradually lifting restrictions implemented to slow the spread of the coronavirus outbreak.

All the washing around left the S&P 500 with a loss of 15.09 points to 2,863.39, its first in three days. The index was up as much as 1.5% early in the morning before it quickly gave out, and the index spent much of the day flipping between small gains and losses.

It coincided with another wild day for oil prices, where a barrel of U.S. oil for delivery in June fell close to $10 before paring its losses, as swelling supplies continue to far exceed demand.

The fluctuations are a sign of a market still dominated by uncertainty about how the recession caused by the coronavirus outbreak will play out, said Tom Martin, senior portfolio manager at Globalt Investments.

“The market is kind of biding its time, in a sense, and waiting to see what happens with regard to the virus itself,” he said. “Because the thing that matters the most to stocks is how much longer is this going to last. And sure, we can reopen, but how slow is that going to be? And even if it becomes more rapid, is there going to be a second wave or a resurgence” of infections?

Like the stocks within the market, the day’s leaderboard for U.S. indexes was close to a mirror opposite of their performance for the year so far.

The Nasdaq, which is dominated by big tech stocks and is the only major U.S. index up over the last year, fell 122.43, or 1.4%, to 8,607.73. The Russell 2000, which got beat up more than the rest of the market on worries about small companies’ financial strength, climbed 16.20, or 1.3%, to 1,298.08.

The Dow Jones Industrial Average slipped 32.23 points, or 0.1%, to 24,101.55. It, like other indexes, gave up its gains after a report in the morning showed U.S. consumer confidence fell to its lowest level in nearly six years.

With massive aid in place for the economy from central banks and governments, stocks have been building higher in recent weeks on anticipation that stay-at-home orders will gradually lift as infections level off in some hard-hit areas. Even though data continues to pile up showing the devastation hitting the economy following worldwide orders for businesses to shut down, some investors are looking past it to the prospect of a return of growth in the future.

“Hope is trumping caution this week so far,” said Katie Nixon, chief investment officer at Northern Trust Wealth Management.

Harley-Davidson jumped 15.2% after laying out plans to slash costs and preserve cash, including a cut of its dividend and a halt to its stock buyback program. Norwegian Cruise Line rose 14.4%, and Kimco Realty, which owns shopping centers, added 9.1%

Companies whose fortunes are tied most closely to the strength of the economy were also leading the way. Energy stocks rose 2.2% for the biggest gain among the 11 sectors that make up the S&P 500. Raw-material producers were close behind with a gain of 2%.

On the opposite side was Netflix, which set record highs recently as viewers around the world remained stuck at home. It slipped 4.2%. Other stay-at-home winners also fell, including a 2.6% drop for Amazon and a 1.1% dip for Clorox, whose disinfecting wipes have seen a surge in demand.

Many professional investors are skeptical of the stock market’s big rally, which has driven the S&P 500 up 28% since hitting a low late last month. Besides the possibility that premature reopenings of economies could lead to another wave of infections, they’re wary of how quickly stocks have risen — nearly as fast as they had earlier dropped in anticipation of a severe recession.

The economy’s recovery may drag for a while as people tiptoe back to “normal” life and shopping patterns. That disconnect between a quick rebound for stocks and a potentially slower recovery for the economy could cause a reckoning later on.

Treasury yields, which had sent warning signals about the disastrous economic effects of the pandemic long before the stock market did, were down.

The yield on the 10-year Treasury fell to 0.61% from 0.65% late Monday. Yields tend to fall when investors are downgrading expectations for the economy and inflation.

Inflation recently has gotten weighed down by a plunge in oil prices. With airplanes, autos and factories around the world idled, demand has collapsed for energy, and producers have not cut back quickly enough. All the extra oil has flowed into storage tanks, which are close to hitting their limits.

A barrel of U.S. oil for delivery in June fell 44 cents, or 3.4%, to settle at $12.34 in volatile trading. It dropped as low as $10.07 earlier in the morning. Brent crude, the international standard, rose 47 cents, or 2.4%, to settle at $20.46 a barrel.

European stocks were strong following a mixed showing in Asian markets.

 

[bigdog]

Stocks around the world whipped higher Wednesday, riding a wave of optimism on encouraging data about a possible treatment for COVID-19.

The upswell of hope was so strong that investors completely sidestepped a report showing the outbreak drove the U.S. economy to its worst quarterly performance since the Great Recession. The S&P 500 vaulted 2.7% higher and extended a rally that’s brought the U.S. stock market to the brink of its best month in 45 years.

The spark for Wednesday’s rally was a report that an experimental drug proved effective against the new coronavirus in a study run by the National Institutes of Health. The nation’s top infectious diseases expert said the drug reduced the time it takes patients to recover, and it raised hopes that life around the world may eventually tiptoe back toward “normal.”

The S&P 500 rose 76.12 points to 2,939.51. It has surged 13.7% in April, and it’s a day away from closing out its best month since late 1974.

The Dow Jones Industrial Average rose 532.31, or 2.2%, to 24,633.86, and the Nasdaq climbed 306.98, or 3.6%, to 8,914.71.

“What you’re finding now is you have this debate between optimism and realism,” said Adam Taback, chief investment officer for Wells Fargo Private Wealth Management.

The Federal Reserve said Wednesday that it expects the health crisis to weigh on the economy “over the medium term,” as it promised to keep in place massive amounts of aid and interest rates at nearly zero. Oil prices, bonds and other markets besides stocks have also been dominated in recent weeks by worries about the economic impact of the virus outbreak.

ASX 200 expected to surge higher.
It looks set to be a very positive day for the ASX 200 index on Thursday. According to the latest futures contracts, the ASX 200 is expected to surge 101 points or 1.9% higher at the open. This follows a strong night on Wall Street which saw the Dow Jones rise 2.2%, the S&P 500 climb 2.66%, and the Nasdaq index storm 3.6% higher. Positive data from Gilead Sciences’ remdesivir corona-virus trial sent the market racing higher.

https://www.usnews.com/news/busines...ain-after-france-spain-unveil-reopening-plans

Stocks Charge Higher on Hopes for Progress in Fighting Virus
Stocks charged higher around the world Wednesday following an encouraging report on a possible treatment for COVID-19.
By Associated Press, Wire Service Content April 29, 2020, at 4:49 p.m.

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

Stocks around the world whipped higher Wednesday, riding a wave of optimism on encouraging data about a possible treatment for COVID-19.

The upswell of hope was so strong that investors completely sidestepped a report showing the outbreak drove the U.S. economy to its worst quarterly performance since the Great Recession. The S&P 500 vaulted 2.7% higher and extended a rally that’s brought the U.S. stock market to the brink of its best month in 45 years.

The spark for Wednesday’s rally was a report that an experimental drug proved effective against the new coronavirus in a study run by the National Institutes of Health. The nation’s top infectious diseases expert said the drug reduced the time it takes patients to recover, and it raised hopes that life around the world may eventually tiptoe back toward “normal.”

The S&P 500 rose 76.12 points to 2,939.51. It has surged 13.7% in April, and it’s a day away from closing out its best month since late 1974.

The Dow Jones Industrial Average rose 532.31, or 2.2%, to 24,633.86, and the Nasdaq climbed 306.98, or 3.6%, to 8,914.71.

“What you’re finding now is you have this debate between optimism and realism,” said Adam Taback, chief investment officer for Wells Fargo Private Wealth Management.

The Federal Reserve said Wednesday that it expects the health crisis to weigh on the economy “over the medium term,” as it promised to keep in place massive amounts of aid and interest rates at nearly zero. Oil prices, bonds and other markets besides stocks have also been dominated in recent weeks by worries about the economic impact of the virus outbreak.

“Everything except equities is telling you things are not great,” Taback said. “This market is overly optimistic.”

Gilead’s release about its remdesivir drug hit markets at the same moment as a government report showing the U.S. economy shrank at a 4.8% annual rate in the first three months of the year.

Job losses have exploded since early April, as layoffs sweep the nation following widespread stay-at-home orders, and economists expect to see even worse numbers for the second quarter of the year.

The first quarter figure was “merely the tip of the iceberg,” said Michael Reynolds, investment strategy officer at Glenmede.

But stocks have been rallying over the last month as investors look beyond the current economic devastation and focus instead on the prospect of economies gradually reopening. Some U.S. states and nations around the world have laid out plans to relax restrictions keeping people at home and businesses bereft of customers. Any new treatment for COVID-19 could also lower the dread so prevalent among households and businesses around the world.

But what got the 31.4% rally for the S&P 500 started in late March was massive aid from the Federal Reserve and Congress. The Fed on Wednesday said it wouldn’t be pulling back on the aid anytime soon.

The market’s easing pessimism about the economy’s path is perhaps most clear in how the smallest stocks have been performing.

When recession worries were at their height, investors punished small-cap stocks and sent them to sharper declines than the rest of the market, in part on worries about their more limited financial resources. But the Russell 2000 index of small-cap stocks jumped 4.8% Wednesday. It’s up 10.4% this week alone, more than double the gain for indexes of bigger stocks.

The market’s gains were widespread and accelerated through the day. Big tech and communications stocks helped lead the way after Google’s parent company said its revenue was stronger in the first three months of the year than Wall Street was expecting.

Alphabet jumped nearly 9%, which helped communications stocks in the S&P 500 rise 5% for one of the biggest gains among the 11 sectors that make up the index.

In Europe, the French CAC 40 rose 2.2% after being down before the Gilead report. The German DAX returned 2.9%, and the FTSE 100 in London added 2.6%. In Asia, Hong Kong’s Hang Seng added 0.3%, and the Kospi in Seoul advanced 0.7%.

Many professional investors are skeptical of the U.S. stock market’s big rally. There’s still a lot of uncertainty about how long the recession will last.

The vigorous rise for stocks over the last month also implies investors see a relatively quick rebound for the economy and profits following the current devastation. But it may take a while for households and businesses to get back to how things used to be.

“My concern is that the market is starting to get a little bit more focused on the rewards and less focused on the risks right now,” said Sal Bruno, chief investment officer at IndexIQ. “Maybe investors are getting a little too enthusiastic.”

“I don’t think you just flip the switch and everybody goes back to work right away,” he said.

The yield on the 10-year U.S. Treasury rose to 0.62% from 0.61% late Tuesday after paring earlier losses. Yields tend to rise when investors are upgrading expectations for the economy and inflation.

Oil prices are continuing their extreme swings after a collapse in demand has sent crude storage tanks close to their limits. Benchmark U.S. crude oil for June delivery rose $2.72, or 22%, to settle at $15.06 a barrel Wednesday. Brent crude oil, the international standard, rose $2.08, or 10.2%, to $22.54 a barrel.

 

[bigdog]

A crush of dismal data about the economy helped send markets lower Thursday, a meek ending to a historic, juggernaut month for stocks.

The S&P 500 fell 0.9% after reports showed millions more U.S. workers filed for unemployment benefits last week and the European economy crumpled to its worst performance on record last quarter, among other lowlights. It was the biggest loss for the U.S. stock market in more than a week, but it was still just a wiggle within the S&P 500’s best month in decades.

The index surged 12.7% in April, its biggest monthly gain since 1987. Before Thursday’s fall, it had been on track for its best month since 1974 as stocks recouped more than half their 34% plunge from February into late March on worries about a sudden, devastating recession.

“The disconnect between the market and the economy in April is about as wide as any of us have ever seen,” said Ryan Detrick, senior market strategist for LPL Financial.

Promises from the Federal Reserve to do whatever it takes to prop up the economy through the coronavirus crisis helped spark the rally, as did trillions in spending by Congress. The rally has continued recently on optimism that economies around the world are close to reopening. All but 27 stocks in the S&P 500 climbed during April.

The month’s gains for stocks came in the face of mayhem in the oil market, where prices in one corner dipped below zero for the first time, and as investors continued to rush into U.S. government bonds in search of safety. Reports piled up by the day showing the severe hits the economy is taking from widespread stay-at-home orders meant to slow the spread of the virus.

It all left many professional investors skeptical about the steep rebound in stocks, whose rapid ascent resembles a “V” on a line chart following its equally sharp decline, when there’s still too much uncertainty about how long the recession will last.

“The rebound in April was an assumption that this was going to be a short, V-shaped recovery, both economically and at the corporate and business level,” said David Lyon, global investment specialist at J.P. Morgan Private Bank. “In our view, it probably has gotten a little ahead of itself. We think it’s going to be a longer and slower recovery.”

He said it could take a couple years before the economy and people’s behaviors get back to what they were like before the outbreak.

Thursday’s deluge of dour economic data — along with some investors looking to sell after weeks of gains — was enough to send 86% of stocks in the S&P 500 down and European stocks sharply lower.

The S&P 500 fell 27.08 points to 2,912.43. The Dow Jones Industrial Average lost 288.14, or 1.2%, to 24,345.72, and the Nasdaq fell 25.16, or 0.3%, to 8,889.55.

ASX 200 expected to sink lower.
The ASX 200 index looks set for a disappointing end to the week and could give back all of yesterday’s gain. According to the latest futures contracts, the ASX 200 is expected to fall 119 points or 2.15% lower. This follows a weak night of trade in the United States which saw the Dow Jones fall 1.2%, the S&P 500 drop 0.9%, and the Nasdaq index down 0.3%.

https://www.usnews.com/news/busines...s-rise-on-hopes-for-drug-to-treat-coronavirus

Wall Street’s Best Month in 33 Years Closes With Whimper
Stocks fell on Wall Street Thursday as more grim news piled up revealing the grave economic damage being caused by the coronavirus outbreak.
By Associated Press, Wire Service Content April 30, 2020, at 5:20 p.m.

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

A crush of dismal data about the economy helped send markets lower Thursday, a meek ending to a historic, juggernaut month for stocks.

The S&P 500 fell 0.9% after reports showed millions more U.S. workers filed for unemployment benefits last week and the European economy crumpled to its worst performance on record last quarter, among other lowlights. It was the biggest loss for the U.S. stock market in more than a week, but it was still just a wiggle within the S&P 500’s best month in decades.

The index surged 12.7% in April, its biggest monthly gain since 1987. Before Thursday’s fall, it had been on track for its best month since 1974 as stocks recouped more than half their 34% plunge from February into late March on worries about a sudden, devastating recession.

“The disconnect between the market and the economy in April is about as wide as any of us have ever seen,” said Ryan Detrick, senior market strategist for LPL Financial.

Promises from the Federal Reserve to do whatever it takes to prop up the economy through the coronavirus crisis helped spark the rally, as did trillions in spending by Congress. The rally has continued recently on optimism that economies around the world are close to reopening. All but 27 stocks in the S&P 500 climbed during April.

The month’s gains for stocks came in the face of mayhem in the oil market, where prices in one corner dipped below zero for the first time, and as investors continued to rush into U.S. government bonds in search of safety. Reports piled up by the day showing the severe hits the economy is taking from widespread stay-at-home orders meant to slow the spread of the virus.

It all left many professional investors skeptical about the steep rebound in stocks, whose rapid ascent resembles a “V” on a line chart following its equally sharp decline, when there’s still too much uncertainty about how long the recession will last.

“The rebound in April was an assumption that this was going to be a short, V-shaped recovery, both economically and at the corporate and business level,” said David Lyon, global investment specialist at J.P. Morgan Private Bank. “In our view, it probably has gotten a little ahead of itself. We think it’s going to be a longer and slower recovery.”

He said it could take a couple years before the economy and people’s behaviors get back to what they were like before the outbreak.

Thursday’s deluge of dour economic data — along with some investors looking to sell after weeks of gains — was enough to send 86% of stocks in the S&P 500 down and European stocks sharply lower.

The S&P 500 fell 27.08 points to 2,912.43. The Dow Jones Industrial Average lost 288.14, or 1.2%, to 24,345.72, and the Nasdaq fell 25.16, or 0.3%, to 8,889.55.

“This is the saddest day for the global economy we have ever seen” in the 50 years that economists at High Frequency Economics have been following economic data, they wrote in a report. “The statistical offices of the economies we watch pumped out 19 economic reports overnight. They revealed historic declines of activity and surging unemployment on a scale we have never seen before. We are sad.”

Besides the jobless figures in the United States, which brought the total to 30 million in just six weeks, data released on Thursday showed that consumer spending plunged a record 7.5% in March from the prior month. That’s crucial for an economy where consumer spending makes up 70% of the total.

Stocks that tend to be most closely tied to the strength of the economy had the day’s biggest losses. Raw-material producers lost 3% for the largest loss among the 11 sectors that make up the S&P 500. Financial and energy stocks were close behind.

“This is a bit of fear that there is not enough of a rebound to restart the parts of the economy that are not connected to work-from-home,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management.

Some big tech titans reported results for the first quarter that weren’t as bad as investors had braced for, which helped limit the market’s losses. Facebook rose 5.4% after it reported trends in advertising revenue stabilized in April following a steep drop-off in March. Microsoft added 1% after reporting better-than-expected results for the first quarter.

Among European countries that use the euro, the economy shrank by 3.8% in the first three months of the year from the quarter before. That’s the biggest contraction since records began in 1995. Discouraging data also came in on China’s economy, which is concerning for anyone expecting a first-in-first-out economic wave.

“As we look to reopening here in the U.S., the hope is that activity bounces,” Haworth said. “China is certainly ahead of us in reopening and for them not to have a bounce a full month in is a little concerning for the market.”

The yield on the 10-year Treasury edged up to 0.63% from 0.62% late Wednesday. It started the year close to 1.90%. Treasury yields tend to fall when investors are downgrading their expectations for the economy and inflation.

Benchmark U.S. crude oil continued its extreme swings, jumping $3.78, or 25.1%, to settle at $18.84 per barrel. It’s still way below the roughly $60 level where it started the year as worries pile up about the effects of a collapse in demand and as storage tanks fill close to their limits. Brent crude rose $2.73, or 12.1%, to $25.27.

 

[bigdog]

Stocks closed broadly lower on Wall Street Friday after Amazon and other big companies reported disappointing results, the latest evidence of how the coronavirus pandemic is hobbling the economy and hurting corporate earnings.

A day after closing out its best month since 1987, the S&P 500 fell 2.8%. The slide gave the benchmark index its second-straight weekly loss.

The selling accelerated as the day went on, with energy stocks taking the biggest losses. Technology stocks and companies that rely on consumer spending accounted for a big slice of the decline.

Amazon sank 7.6% after it reported profit for the latest quarter that fell short of Wall Street’s forecasts. A sharp increase in costs related to providing deliveries safely during the pandemic outweighed a big increase in revenue. The retail giant's movements have an outsized sway on the S&P 500 because it’s the third-largest company in the index.

“We all had these great expectations for Amazon,” said J.J. Kinahan, chief strategist with TD Ameritrade. “The stock ran up amazingly because we were expecting their earnings to be good.”

The S&P 500 gave up 81.72 points to close at 2,830.71. The Dow Jones Industrial Average fell 622.03 points, or 2.6%, at 23,723.69. At one point, the index was down 700 points.

The Nasdaq, which is heavily weighed with technology stocks, slid 284.60 points, or 3.2%, to 8,604.95. The Russell 2000 index of smaller company stocks fell more than the rest of the market, shedding 50.18 points, or 3.8%, to 1,260.48.

Exxon Mobil's latest results also weighed on the market. The oil producer fell 7.2% after it said that it swung to a loss of $610 million last quarter. It had to write down the value of its inventories by $2.9 billion amid a collapse in energy prices as airplanes, automobiles and workplaces worldwide suddenly went idle in the spring.

One Month Chart

https://www.usnews.com/news/busines...all-after-wall-st-slips-on-grim-economic-news

Stocks Slide as Amazon, Other Companies Detail Virus Fallout
Stocks ended lower on Wall Street Friday, giving up their gains for the week, after Amazon and other big companies laid out how the coronavirus pandemic is hitting their bottom lines.

By Associated Press, Wire Service Content May 1, 2020, at 4:49 p.m.

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

Stocks closed broadly lower on Wall Street Friday after Amazon and other big companies reported disappointing results, the latest evidence of how the coronavirus pandemic is hobbling the economy and hurting corporate earnings.

A day after closing out its best month since 1987, the S&P 500 fell 2.8%. The slide gave the benchmark index its second-straight weekly loss.

The selling accelerated as the day went on, with energy stocks taking the biggest losses. Technology stocks and companies that rely on consumer spending accounted for a big slice of the decline.

Amazon sank 7.6% after it reported profit for the latest quarter that fell short of Wall Street’s forecasts. A sharp increase in costs related to providing deliveries safely during the pandemic outweighed a big increase in revenue. The retail giant's movements have an outsized sway on the S&P 500 because it’s the third-largest company in the index.

“We all had these great expectations for Amazon,” said J.J. Kinahan, chief strategist with TD Ameritrade. “The stock ran up amazingly because we were expecting their earnings to be good.”

The S&P 500 gave up 81.72 points to close at 2,830.71. The Dow Jones Industrial Average fell 622.03 points, or 2.6%, at 23,723.69. At one point, the index was down 700 points.

The Nasdaq, which is heavily weighed with technology stocks, slid 284.60 points, or 3.2%, to 8,604.95. The Russell 2000 index of smaller company stocks fell more than the rest of the market, shedding 50.18 points, or 3.8%, to 1,260.48.

Exxon Mobil's latest results also weighed on the market. The oil producer fell 7.2% after it said that it swung to a loss of $610 million last quarter. It had to write down the value of its inventories by $2.9 billion amid a collapse in energy prices as airplanes, automobiles and workplaces worldwide suddenly went idle in the spring.

The slide by Exxon Mobil helped drive energy stocks across the S&P 500 to a 6% loss, the largest among the 11 sectors that make up the index.

Wall Street has been bracing for a poor showing by companies this earnings season due to the economic shock from the coronavirus. Many companies have pulled their earnings guidance for the rest of the year, citing uncertainty about how much of an impact the outbreak will have on their business and the economy, which is now in a recession.

“There’s an expectation that we’ll have a very difficult second quarter for GDP and profits, and the third quarter will probably still be difficult,” said Jason Pride, chief investment officer of private wealth at Glenmede.

That has many analysts looking past the next few months and betting on a recovery by the end of this year or in 2021. “But, that’s predicated on us not having a second wave of the outbreak,” Pride said.

Disappointing company results weren't the only drag on stocks Friday. Shares of electric car and solar panel maker Tesla Inc. slid 10.3% after CEO Elon Musk tweeted that the price was too high. In a series of tweets just after 11 a.m., Musk said he was selling nearly all of his physical possessions and would not own a house. Then he wrote that “Tesla stock price is too high imo.” After that he tweeted that people should be given back their freedom, in another protest of government stay-home orders to slow the spread of coronavirus. Then he posted parts of the U.S. national anthem.

“Clearly the Street is frustrated at this tweet,” Wedbush analyst Daniel Ives wrote in an email, adding that the tweets amounted to “Elon being Elon."

Stocks rallied last month as economies around the world laid out plans to relax stay-at-home orders and hopes rose that a possible drug treatment for COVID-19 may be on the horizon. Late Friday, U.S. regulators allowed emergency use of an experimental drug that appears to help some coronavirus patients recover faster.

The market posted sizable gains after the Federal Reserve and Congress announced aggressive meaures to support markets and the economy. Stocks have now more than halved the sharp losses they took from its February record high into late March.

Many professional investors say the rally has been overdone given how much uncertainty still exists about how long the recession will last. If U.S. states and nations around the world reopen their economies prematurely, it may lead to additional waves of infections, which could mean more business closures, layoffs and economic devastation.

“Overall, we're generally positive on the market, but think there could be some short-term pullback here,” said George Rusnak, head of investment strategy at Wells Fargo Private Wealth Management.

The yield on the 10-year Treasury held steady at 0.62%. It’s still well below the roughly 1.90% level where it was at the start of the year.

Benchmark U.S. crude oil rose 5% to settle at $19.78 per barrel. U.S. crude has plunged from its perch of roughly $60 at the start of the year on worries about a collapse in demand and strained storage facilities. Brent crude, the international standard, slipped 0.4%, to close at $26.44 per barrel.

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[bigdog]

ASX 200 expected to edge lower.
The ASX 200 looks set to continue its slide on Monday. Current SPI futures are pointing to a 7 point or 0.1% decline at the open. This follows a poor end to the week on Wall Street. On Friday the Dow Jones fell 2.6%, the S&P 500 dropped 2.8%, and the Nasdaq index sank 3.2% lower. Tech giant Amazon was out of form and dropped 7% in response to its quarterly result

 

[bigdog]

Stocks shook off an early stumble and scratched out small gains on Wall Street Monday, as the market’s momentum slows following its best month in decades.

The S&P 500 added 0.4% and narrowly avoided what would have been its first three-day losing streak in nearly two months. The Dow eked out a 0.1% gain, while the Nasdaq rose 1.2%.

When U.S. trading opened, the market appeared set for a uniformly depressing day. The S&P 500 dove 1.2% almost immediately, with airlines sinking particularly sharply after famed investor Warren Buffett said he’d dumped all his shares in the four biggest U.S. carriers. A ramping up of tensions between the White House and China over the origins and handling of the coronavirus pandemic was also weighing on markets around the world.

But big tech stocks, whose momentum has been nearly unstoppable in recent years, continued to rally and helped the market trim its losses. Energy stocks also helped steady the market after the price of oil pulled a bit further from the record lows set late last month.

The S&P 500 rose 12.03 points to 2,842.74. The Dow Jones Industrial Average added 26.07 to 23,749.76, and the Nasdaq gained 105.77 to 8,710.71.

The market is “searching for direction at this point,” said Sam Stovall, chief investment strategist at CFRA.

After plunging by just over a third from February into late March on worries about a coming, severe recession, the stock market has since more than halved its losses on hopes that infections are leveling off and that growth could resume later this year amid a gradually reopening economy.

The S&P 500 surged 12.7% in April for its best monthly performance in 33 years. The month has historically been one of the best of the year for U.S. stocks, while May has been more of a struggle.

ASX 200 expected to rise again.
It looks set to be another positive day for the ASX 200 on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 27 points or 0.5% higher this morning. This follows a positive start to the week on Wall Street which saw the Dow Jones rise 0.1%, the S&P 500 push 0.4% higher, and the Nasdaq index jump 1.2%. U.S. tech shares did a lot of the heavy lifting overnight.

https://www.usnews.com/news/busines...n-asia-on-rising-china-us-tensions-over-virus

Stocks Shake off an Early Loss and End Higher, Led by Tech
The stock market shook off a weak start and ended with modest gains Monday, thanks to another solid showing from big technology companies.
By Associated Press, Wire Service Content May 4, 2020, at 4:29 p.m.

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

Stocks shook off an early stumble and scratched out small gains on Wall Street Monday, as the market’s momentum slows following its best month in decades.

The S&P 500 added 0.4% and narrowly avoided what would have been its first three-day losing streak in nearly two months. The Dow eked out a 0.1% gain, while the Nasdaq rose 1.2%.

When U.S. trading opened, the market appeared set for a uniformly depressing day. The S&P 500 dove 1.2% almost immediately, with airlines sinking particularly sharply after famed investor Warren Buffett said he’d dumped all his shares in the four biggest U.S. carriers. A ramping up of tensions between the White House and China over the origins and handling of the coronavirus pandemic was also weighing on markets around the world.

But big tech stocks, whose momentum has been nearly unstoppable in recent years, continued to rally and helped the market trim its losses. Energy stocks also helped steady the market after the price of oil pulled a bit further from the record lows set late last month.

The S&P 500 rose 12.03 points to 2,842.74. The Dow Jones Industrial Average added 26.07 to 23,749.76, and the Nasdaq gained 105.77 to 8,710.71.

The market is “searching for direction at this point,” said Sam Stovall, chief investment strategist at CFRA.

After plunging by just over a third from February into late March on worries about a coming, severe recession, the stock market has since more than halved its losses on hopes that infections are leveling off and that growth could resume later this year amid a gradually reopening economy.

The S&P 500 surged 12.7% in April for its best monthly performance in 33 years. The month has historically been one of the best of the year for U.S. stocks, while May has been more of a struggle.

“I wouldn’t hold out a lot of hope for seasonal strength,” Stovall said. “This is the six-month period in which the market tends to trace out the design on Charlie Brown’s shirt.”

Many professional investors have been skeptical of the market’s huge rally given how much devastation is rolling through the economy. Uncertainty is extremely high about how long the recession will last after businesses shut down worldwide in hopes of slowing the spread of the virus. Even some of Wall Street’s optimists said a pullback for the S&P 500 was overdue.

Strategists at Morgan Stanley called such a pullback, which could reach 10%, “a necessary pause that refreshes.” While acknowledging the severe recession that everyone sees gripping the world, they say stocks can still resume their climb due largely to “seemingly unlimited central bank support, unprecedented fiscal stimulus” and a possible deceleration in the shocking numbers coming in on the economy.

Monday’s biggest losses were concentrated in airlines, after Berkshire Hathaway disclosed that it sold all its stakes in American Airlines Group, Delta Air Lines, Southwest Airlines and United Airlines. Berkshire Hathaway’s Buffett is one of the stock market’s most famous bargain hunters, and investors around the world parse every clue he gives about investing. Over the weekend, he said he’d made a mistake in how he valued airlines.

All four of the airlines lost 5.1% or more on Monday.

Also potentially weighing on markets was Buffett saying that he’s hanging onto his cash and hasn’t made any big deals recently because he hasn’t seen any on attractive terms.

Tech stocks in the S&P 500 rose 1.4%, though, and they make up roughly a quarter of the index by market value, which gives them particularly big sway over the market. Microsoft, the biggest company in the index, climbed 2.4%.

Energy stocks jumped 3.7% after a barrel of U.S. crude oil for delivery in June rose 61 cents to $20.39 per barrel. It’s been generally climbing since dropping to $6.50 late last month, but it’s still way below the roughly $60 level where it started the year amid worries about collapsing demand and swelling supplies.

Brent crude, the international standard, rose 76 cents to $27.20 per barrel.

Earlier in the day, markets in Asia and Europe fell to losses after tensions worsened between the world‘s two biggest economies.

Criticized over his handling of the crisis, President Donald Trump has tried to shift the blame to China. Beijing has repeatedly pushed back on U.S. accusations that the outbreak was China’s fault.

The antagonisms threaten the truce in a trade war between Washington and Beijing that was struck just before China began shutting much of its economy down in late January to fight the pandemic.

“We’re still battling with the notions of how and when we’ll bottom and how things will be different at the end of” the pandemic, said Keith Buchanan, senior portfolio manager at Globalt.

Reintroducing a tariff dispute just “adds another worrying point for the market,” he said.

Stocks in Hong Kong dropped 4.2%, while South Korea’s market lost 2.7%. In Europe, France’s CAC 40 fell 4.2%, Germany’s DAX lost 3.6% and Britain’s FTSE 100 fell 0.2%.

Monday was the first opportunity for France, South Korea and other markets to catch up to the rest of the world, following their closures for holidays last week. Stock markets in Tokyo and Shanghai were among those closed for holidays on Monday.

 

[bigdog]

Stocks closed broadly higher on Wall Street Tuesday as more countries relaxed restrictions on businesses, raising hopes for a recovery from the historic plunge that is sweeping the global economy.

The S&P 500 rose 0.9%, although it lost about half of its early gains in a late-afternoon burst of selling. Technology and health care stocks accounted for much of the gains, which followed a strong showing in overseas markets.

Investors are cautiously optimistic that the gradual reopening of some businesses will begin to turn around the economy.

In California, some retail businesses could begin serving customers again as early as Friday, under some restrictions. Many European countries have also begun relaxing strict orders meant to slow the spread of the coronavirus outbreak, while waiting to see if it leads to a resurgence in infections. In Asia, the first pitches of the South Korean baseball season thwacked into catchers’ mitts, albeit in stadiums with no fans in attendance.

Expectations for stronger demand for oil as more businesses get the green light to open helped drive the price of oil sharply higher, extending its mini-rally after falling to record lows last month.

“It’s investors getting a little bit ahead of themselves," said Willie Delwiche, investment strategist at Baird. "Maybe, it's a sense of relief that we’ve made it this far and there’s some sort of a path forward, even if it’s not real clear.”

Delwiche noted that questions remain about at what pace will consumers venture out of their homes and spend money as shuttered businesses reopen.

“That's the big unknown right now,” he said.

The S&P 500 gained 25.70 points to 2,868.44. The Dow Jones Industrial Average rose 133.33 points, or 0.6%, to 23,883.09. The Nasdaq climbed 98.41 points, or 1.1%, to 8,809.12. Small stocks in the Russell 2000 index were doing even better than their larger rivals for much of the day, before shedding some of their gains by late afternoon. The Russell 2000 rose 9.54 points, or 0.8%, to 1,273.51.

ASX 200 expected to edge lower.
It looks set to be a subdued day of trade on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 15 points or 0.3% lower this morning. This is despite the positive night of trade on Wall Street on Tuesday. The Dow Jones rose 0.56%, the S&P 500 pushed 0.9% higher, and the Nasdaq index jumped 1.1% higher.

https://www.usnews.com/news/busines...ares-advance-following-rebound-on-wall-street

Stocks End Higher on Wall Street Even After Late-Day Stumble
Stocks closed higher on Wall Street but gave up about half of their early gains in a late-afternoon bout of selling.
By Associated Press, Wire Service Content May 5, 2020, at 5:46 p.m.

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

Stocks closed broadly higher on Wall Street Tuesday as more countries relaxed restrictions on businesses, raising hopes for a recovery from the historic plunge that is sweeping the global economy.

The S&P 500 rose 0.9%, although it lost about half of its early gains in a late-afternoon burst of selling. Technology and health care stocks accounted for much of the gains, which followed a strong showing in overseas markets.

Investors are cautiously optimistic that the gradual reopening of some businesses will begin to turn around the economy.

In California, some retail businesses could begin serving customers again as early as Friday, under some restrictions. Many European countries have also begun relaxing strict orders meant to slow the spread of the coronavirus outbreak, while waiting to see if it leads to a resurgence in infections. In Asia, the first pitches of the South Korean baseball season thwacked into catchers’ mitts, albeit in stadiums with no fans in attendance.

Expectations for stronger demand for oil as more businesses get the green light to open helped drive the price of oil sharply higher, extending its mini-rally after falling to record lows last month.

“It’s investors getting a little bit ahead of themselves," said Willie Delwiche, investment strategist at Baird. "Maybe, it's a sense of relief that we’ve made it this far and there’s some sort of a path forward, even if it’s not real clear.”

Delwiche noted that questions remain about at what pace will consumers venture out of their homes and spend money as shuttered businesses reopen.

“That's the big unknown right now,” he said.

The S&P 500 gained 25.70 points to 2,868.44. The Dow Jones Industrial Average rose 133.33 points, or 0.6%, to 23,883.09. The Nasdaq climbed 98.41 points, or 1.1%, to 8,809.12. Small stocks in the Russell 2000 index were doing even better than their larger rivals for much of the day, before shedding some of their gains by late afternoon. The Russell 2000 rose 9.54 points, or 0.8%, to 1,273.51.

The stock market has been rallying since late March, as investors look beyond the devastation that’s currently ravaging the global economy. They’re focusing instead on the prospects for a resumption of growth later in the year, as well as on the massive support for markets provided by the Federal Reserve. Many analysts are skeptical of the stock market’s rally, saying it’s overdone given all the uncertainty about how long the recession will last, but the S&P 500 has nevertheless more than halved its losses from its sell-off earlier in the year.

A report released Tuesday morning showed that the U.S. services industry shrank for the first time in a decade last month, but it caused barely a ripple in the stock or bond market. It wasn’t quite as terrible as economists had forecast.

”What we should be watching for is not that things are good; things are not going to be good,” said Brad McMillan, chief investment officer for Commonwealth Financial Network. “We should be watching for signs that things are less bad.”

”Just getting people back to work and businesses open again can improve attitudes and confidence,” he said.

Disney fell 3% in extended trading after the company reported a steep drop in quarterly profit as many segments of its media and entertainment offerings ground to a standstill during the coronavirus pandemic. Overall, the company said costs related to COVID-19 cut Disney’s pretax profit by $1.4 billion.

Hopes that the reopening of economies will eventually lead to a pickup in demand have also very recently helped oil prices climb off the floor. A barrel of U.S. oil to be delivered in June jumped 20.5% to settle at $24.56 Tuesday, up from a low point of $6.50 set late last month. Oil is still well below the roughly $60 that it cost at the start of the year, after plunging on worries that the collapse in oil demand would lead to topped-out storage tanks.

Brent crude, the standard for international pricing, gained 13.9% to close at $30.97 per barrel.

“The feeling on the floor is that energy is in a better spot, and while it’s not brilliant,“ the gulf between oil supplies and demand “is starting to shift in a more positive direction,” Chris Weston of Pepperstone said in a report.

Technology stocks also continued their strong run. Apple rose 1.5% and Microsoft gained 1.1%. The two companies alone account for 11% of the S&P 500's entire market value. Tech stocks in the S&P 500 have nearly erased all their losses for 2020 so far, after earlier being down as much as 23%. The sector is now down 0.3%.

In Europe, Germany’s DAX rose 2.5%, the CAC 40 in Paris gained 2.4% and the FTSE 100 in London rose 1.7%.

Hong Kong’s Hang Seng added 1.1% as the government said it would relax some social distancing measures, allowing certain businesses such as gyms, cinemas and beauty salons to reopen and doubling the number of individuals allowed at public gatherings to a maximum of eight. Markets in Tokyo, Shanghai and Seoul were closed for holidays.

In another sign of a bit less pessimism in the market, the yield on the 10-year Treasury note ticked up to 0.66% from 0.63% late Monday. Treasury yields tend to rise when investors are upgrading their expectations for the economy and inflation. But it’s still well below the 1.90% it yielded at the start of the year.

 

[bigdog]

Stocks fell on Wall Street Wednesday, sending the market to its first loss in three days, after more depressing data rolled in on the devastation sweeping the global economy.

The S&P 500 dropped 0.7%, and three out of four stocks in the index sank. But the market’s losses would have been much worse if not for continued gains for technology stocks. Momentum for Microsoft, Apple and other tech stocks has proven to be nearly unstoppable this year, even in the face of the coronavirus pandemic, and more gains for them almost singlehandedly kept Wall Street steady for much of Wednesday’s trading.

The S&P 500 wavered between modest gains and losses for much of the day as the gains for tech stocks jousted with the more prevalent losses elsewhere, before it turned lower in the last half hour of trading. It ended down 20.02 points at 2,848.42. The Dow Jones Industrial Average sank 218.45 points, or 0.9%, to 23,664.64. The Nasdaq, which is full of tech stocks, rose 45.27, or 0.5%, to 8,854.39.

A report Wednesday morning showed private U.S. employers eliminated an astonishing 20.2 million jobs last month. It sets a dour stage for Friday’s more comprehensive monthly jobs report from the U.S. government. Across the Atlantic, the European Union said Wednesday that it’s bracing for a “recession of historic proportions” amid restrictions meant to slow the spread of the virus.

Financial stocks weighed particularly heavy on the market, and JPMorgan Chase fell 1.9% while Wells Fargo lost 2.7%. Banks have been some of the hardest-hit stocks this year, largely on worries that all the job losses caused by the recession will saddle them with mountains of bad loans.

Energy stocks were also down after oil prices gave up some of their gains from earlier in the week. Benchmark U.S. crude oil fell 57 cents, or 2.3%, to settle at $23.99 a barrel Wednesday. Brent crude oil, the international standard, fell $1.25 to $29.72 a barrel. That helped drag Chevron down 3.1% and Exxon Mobil down 1.9%.

But helping to counterweight that was the gain in tech stocks, which are able prop up the market due to their massive size. Microsoft and Apple alone make up 11% of the S&P 500 by market value, giving their movements great sway on the index. Each rose 1%.

ASX 200 expected to fall again.
The ASX 200 looks set to fall again on Thursday after a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 1% or 51 points lower this morning. On Wall Street the Dow Jones fell 0.9%, the S&P 500 dropped 0.7%, and the Nasdaq index defied the other indices and climbed 0.5%

Wall Street dips to week’s first loss despite tech’s efforts
By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGAan hour ago
https://apnews.com/007a444ccd10df36a802899af8d04de1

Stocks fell on Wall Street Wednesday, sending the market to its first loss in three days, after more depressing data rolled in on the devastation sweeping the global economy.

The S&P 500 dropped 0.7%, and three out of four stocks in the index sank. But the market’s losses would have been much worse if not for continued gains for technology stocks. Momentum for Microsoft, Apple and other tech stocks has proven to be nearly unstoppable this year, even in the face of the coronavirus pandemic, and more gains for them almost singlehandedly kept Wall Street steady for much of Wednesday’s trading.

The S&P 500 wavered between modest gains and losses for much of the day as the gains for tech stocks jousted with the more prevalent losses elsewhere, before it turned lower in the last half hour of trading. It ended down 20.02 points at 2,848.42. The Dow Jones Industrial Average sank 218.45 points, or 0.9%, to 23,664.64. The Nasdaq, which is full of tech stocks, rose 45.27, or 0.5%, to 8,854.39.

A report Wednesday morning showed private U.S. employers eliminated an astonishing 20.2 million jobs last month. It sets a dour stage for Friday’s more comprehensive monthly jobs report from the U.S. government. Across the Atlantic, the European Union said Wednesday that it’s bracing for a “recession of historic proportions” amid restrictions meant to slow the spread of the virus.

Financial stocks weighed particularly heavy on the market, and JPMorgan Chase fell 1.9% while Wells Fargo lost 2.7%. Banks have been some of the hardest-hit stocks this year, largely on worries that all the job losses caused by the recession will saddle them with mountains of bad loans.

Energy stocks were also down after oil prices gave up some of their gains from earlier in the week. Benchmark U.S. crude oil fell 57 cents, or 2.3%, to settle at $23.99 a barrel Wednesday. Brent crude oil, the international standard, fell $1.25 to $29.72 a barrel. That helped drag Chevron down 3.1% and Exxon Mobil down 1.9%.

But helping to counterweight that was the gain in tech stocks, which are able prop up the market due to their massive size. Microsoft and Apple alone make up 11% of the S&P 500 by market value, giving their movements great sway on the index. Each rose 1%.

Semiconductor companies were also strong. KLA Corp. rose 5.3% for one of the biggest gains in the index after it reported stronger revenue and earnings for the latest quarter than Wall Street expected.

After being down as much as 23% for the year on worries about the pandemic’s economic hit, tech stocks in the S&P 500 have erased all their losses are now up 0.4% for 2020.

“With the physical economy effectively offline, the virtual economy is all that remains,” said Ryan Giannotto, director of research at GraniteShares. “It’s accelerated the drumbeat of digital disruption.”

The trend across stock markets has been decidedly up in recent weeks. Countries around the world and some U.S. states are allowing businesses to reopen in hopes of arresting the economic devastation, despite warnings that it could lead to a resurgence in infections.

The S&P 500 has more than halved its earlier loss of 34%, which stretched from February into late March. It began its recovery after the Federal Reserve and U.S. government pledged massive amounts of aid for the economy.

Many analysts are skeptical about the rally, calling it overdone given uncertainty about how long the recession will last. And as Wednesday’s reports demonstrated, the damage looks to be the worst in many decades.

“Sentiment right now really rests on the potential for the economic restart and coincides with concerns about a second or third wave of virus spread,” said Eric Freedman, chief investment officer at U.S. Bank Wealth Management. “It’s more of a wait-and-see, driven by both the path toward a return and how rocky the path may be.”

Investors recently have been focusing on the possibility that the economy will be in a less horrible place a few months from now, which would merit higher prices. China, where the pandemic began in December, has allowed factories and some other businesses to reopen. Some European governments are taking similar steps. California might allow some retailers to resume serving customers this week.

“The virus isn’t going away, that’s just part of our ecosystem,” said Giannotto of GraniteShares. “What can be changed is our willingness to accept risk.”

In Asia, South Korea’s Kospi gained 1.8%, and Hong Kong’s Hang Seng rose 1.1%. Stocks in Shanghai added 0.6%. In Europe, French stocks fell 1.1%, and Germany’s market lost 1.1%. The FTSE 100 in London rose 0.1%.

The yield on the 10-year Treasury climbed to 0.70% from 0.65% late Tuesday. That’s up from its record low of below 0.40% set in early March, but it’s still well below the roughly 1.90% it was yielding at the start of the year. Yields tend to fall when investors are downgrading their expectations for the economy and inflation.

The U.S. government is borrowing massive sums to pay for its response to the coronavirus, and the ballooning supply of Treasurys may be adding downward pressure on their prices. When a Treasury’s price falls, its yield rises.

 

[bigdog]

Even with the economy still in miserable shape, some investors are finding reasons to hope the worst of the plunge may have passed, and Wall Street rallied to its biggest gain in a week on Thursday.

The S&P 500 climbed 1.2% for its third gain in four days, following up on similar increases in European markets. Other areas of the market were still showing much more pessimism, though, including bonds.

The day’s headliner economic report showed another 3.2 million U.S. workers applied for jobless benefits last week, bringing the total to 33.5 million over the last seven weeks. It’s a shocking number, but it’s also the fifth straight week that it has declined since hitting a peak in late March.

Several companies also cited signs that the worst may have passed in some parts of their businesses, though more weakness is still definitely on the horizon.

That was enough to bolster hopes that have coursed through the stock market recently as investors look ahead to a future that’s not as bad as the horrific present. On Wall Street, investors often care more about how quickly economic pain is increasing than about whether there is more pain.

The S&P 500 rose 32.77 points to 2,881.19. The Dow Jones Industrial Average gained 211.25, or 0.9%, to 23,875.89. The Nasdaq rose 125.27, or 1.4%, to 8,979.66 and eliminated the last of its losses for 2020 so far.

The S&P 500 has more than halved its 33% loss from February into late March, beginning its rally after the Federal Reserve and Capitol Hill pledged massive amounts of aid for the economy. Many analysts have been skeptical of the rally, saying it’s overdone given how much uncertainty still exists about how long the recession will last.

ASX 200 expected to rise.
The ASX 200 could finish the week on a positive note after a solid night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 0.15% or 8 points higher this morning. On Wall Street the Dow Jones climbed 0.9%, the S&P 500 rose 1.2%, and the Nasdaq index pushed 1.4%. The latter is now in positive territory in 2020.

https://www.usnews.com/news/busines...es-mostly-fall-over-pandemic-us-trade-worries

Stocks Rise on Hope That Worst of Economic Plunge Has Passed
Wall Street rallied for its biggest gain in a week as investors find more reasons to hope that the worst of the economic plunge due to the coronavirus pandemic may have passed.
By Associated Press, Wire Service Content May 7, 2020, at 4:41 p.m.

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

Even with the economy still in miserable shape, some investors are finding reasons to hope the worst of the plunge may have passed, and Wall Street rallied to its biggest gain in a week on Thursday.

The S&P 500 climbed 1.2% for its third gain in four days, following up on similar increases in European markets. Other areas of the market were still showing much more pessimism, though, including bonds.

The day’s headliner economic report showed another 3.2 million U.S. workers applied for jobless benefits last week, bringing the total to 33.5 million over the last seven weeks. It’s a shocking number, but it’s also the fifth straight week that it has declined since hitting a peak in late March.

Several companies also cited signs that the worst may have passed in some parts of their businesses, though more weakness is still definitely on the horizon.

That was enough to bolster hopes that have coursed through the stock market recently as investors look ahead to a future that’s not as bad as the horrific present. On Wall Street, investors often care more about how quickly economic pain is increasing than about whether there is more pain.

The S&P 500 rose 32.77 points to 2,881.19. The Dow Jones Industrial Average gained 211.25, or 0.9%, to 23,875.89. The Nasdaq rose 125.27, or 1.4%, to 8,979.66 and eliminated the last of its losses for 2020 so far.

“Investors are saying: Look, I know things are bad, tell me something I don’t know,” said Sam Stovall, chief investment strategist at CFRA. “If I know things are going to be horrendous, the only way you can surprise me is to the upside.”

Everyone agrees the world is sliding into a severe recession after economies worldwide shut down in hopes of slowing the spread of the coronavirus. But some countries and U.S. states are laying out plans to relax restrictions, which has some investors focusing on the possible resumption of growth later this year.

Investors on Thursday found solace in numbers from other countries further ahead in reopening their economies, which haven’t shown a renewed surge in COVID-19 cases, said Quincy Krosby, chief market strategist at Prudential Financial.

“Right now, what investors and traders are looking at, not to mention public health officials, is how it is working in other countries,” she said. “When you watch other countries opening and doing it successfully without an uptick in cases, it portends well for the U.S.”

Also helping to boost the market, she said, was a federal regulatory approval for the second phase of testing on a potential COVID-19 vaccine from Moderna.

The S&P 500 has more than halved its 33% loss from February into late March, beginning its rally after the Federal Reserve and Capitol Hill pledged massive amounts of aid for the economy. Many analysts have been skeptical of the rally, saying it’s overdone given how much uncertainty still exists about how long the recession will last.

Lyft jumped 21.7% after it said late Wednesday that ride levels appear to have steadied after hitting a bottom in the second week of April. Over each of the three following weeks, the number of rides has grown from the prior week, though they’re still down more than 70% from a year earlier.

Stocks whose fortunes are most closely tied to the strength of the economy helped lead the market. Energy producers in the S&P 500 rose 2.5% for the biggest gain among the 11 sectors that make up the index. Financial stocks were close behind.

They have been among the market’s hardest-hit stocks this year on worries that the recession is erasing demand for oil and could lead to a wave of loan defaults for banks.

The bond market offered a much more cautious take. The yield on the 10-year Treasury fell to 0.63% from 0.71% late Wednesday. Yields tend to fall as investors downgrade their expectations for economic growth and inflation.

The 10-year yield had climbed strongly a day before after the U.S. government gave an update on how it’s borrowing to help pay for the trillions of dollars it’s pumping into the economy to combat the pandemic.

The yield on the two-year Treasury, meanwhile, fell to a record low on Thursday, according to Tradeweb.

In Europe, gains were widespread for stocks. France’s CAC 40 rose 1.5%, and Germany’s DAX returned 1.4%. The FTSE 100 in London added 1.4%.

Encouraging data showed a 3.5% rise in exports for China in April, driven by electronics shipments and textiles, which included a surge in mask exports. Forecasters warned the strength is unlikely to last, though, as the coronavirus pandemic depresses global consumer demand.

Most Asian markets slipped Thursday. South Korea’s Kospi was close to flat, while Hong Kong’s Hang Seng fell 0.6%. Stocks in Shanghai slipped 0.2%.

Benchmark U.S. crude oil fell 44 cents, or 1.8%, to settle at $23.55 a barrel. Brent crude oil, the international standard, fell 26 cents, or 0.9% to $29.46 a barrel.

 

[bigdog]

Wall Street doubled down on its bet that the worst of the recession has passed, sending stocks higher again on Friday despite another historic, crushing report on the job market.

Stocks around the world were already rising before the U.S. government gave its monthly report on jobs, in part on hopes that the U.S. and China won’t restart their trade war. After the report showed employers cut a record-busting 20.5 million jobs last month, the gains actually accelerated.

While the number is a nightmare, it was slightly below the 21 million that economists told markets to brace for. More importantly, investors are betting they won’t see another report that bad again because the number of workers filing for unemployment benefits has slowly declined the last five weeks.

Instead of looking backward at last month’s job losses, some investors focused instead on the prospect of growth resuming later this year. They bought stocks of retailers that laid out plans to reopen in coming weeks, energy companies that would benefit as people start driving again and banks that may skirt the worst-case avalanche of loan defaults.

“So, equity investors are looking for that hope in the third and fourth quarter of this year,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “That’s what this optimism is about.”

The S&P 500 rose 48.61, or 1.7%, to 2,929.80 for its fourth gain in the last five days, and it closed out its first winning week in the last three. The Dow Jones Industrial Average added 455.43, or 1.9%, to 24,331.32, and the Nasdaq composite rose 141.66, or 1.6%, to 9,121.32.

After losing a third of its value in a little more than a month on worries about a severe recession, the S&P 500 has since charged higher to recover more than half its loss. The rally started after the Federal Reserve and Congress pledged trillions of dollars to prop up the economy through the downturn.

https://www.usnews.com/news/busines...hope-that-worst-of-economic-plunge-has-passed

Stocks Rise on Hopes That Awful Jobs Report Marks the Bottom
Wall Street rallied again on Friday despite another historic, crushing report on the job market.
By Associated Press, Wire Service Content May 8, 2020, at 4:59 p.m.

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

Wall Street doubled down on its bet that the worst of the recession has passed, sending stocks higher again on Friday despite another historic, crushing report on the job market.

Stocks around the world were already rising before the U.S. government gave its monthly report on jobs, in part on hopes that the U.S. and China won’t restart their trade war. After the report showed employers cut a record-busting 20.5 million jobs last month, the gains actually accelerated.

While the number is a nightmare, it was slightly below the 21 million that economists told markets to brace for. More importantly, investors are betting they won’t see another report that bad again because the number of workers filing for unemployment benefits has slowly declined the last five weeks.

Instead of looking backward at last month’s job losses, some investors focused instead on the prospect of growth resuming later this year. They bought stocks of retailers that laid out plans to reopen in coming weeks, energy companies that would benefit as people start driving again and banks that may skirt the worst-case avalanche of loan defaults.

“So, equity investors are looking for that hope in the third and fourth quarter of this year,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “That’s what this optimism is about.”

The S&P 500 rose 48.61, or 1.7%, to 2,929.80 for its fourth gain in the last five days, and it closed out its first winning week in the last three. The Dow Jones Industrial Average added 455.43, or 1.9%, to 24,331.32, and the Nasdaq composite rose 141.66, or 1.6%, to 9,121.32.

After losing a third of its value in a little more than a month on worries about a severe recession, the S&P 500 has since charged higher to recover more than half its loss. The rally started after the Federal Reserve and Congress pledged trillions of dollars to prop up the economy through the downturn.

More recently, even as horrific data confirmed the recession fears were correct, investors have pushed stocks higher as countries and many U.S. states laid out plans to relax restrictions on businesses meant to slow the spread of the coronavirus outbreak.

Many analysts are skeptical of the rally, though, saying the economy likely won’t recover nearly as vigorously and quickly as the stock market has. Friday’s jobs report showed that the unemployment rate climbed to its highest level since the Great Depression. And if reopening economies lead to a renewed surge in infections, business shutdowns could sweep the world quickly again.

Because most economic reports are so backward looking, Horneman said she is focusing on things like passenger traffic at airports and Open Table restaurant reservations to get a sense of how quickly the economy can recover.

“In some aspects, investors are starting to look at it as the worst is behind us,” said Charlie Ripley, senior investment strategist for Allianz Investment Management.

Companies whose profits are usually most closely tied to the strength of the economy led the market higher. Energy producers in the S&P 500 jumped 4.3% for the biggest gain of the 11 sectors that make up the index. Industrial companies and financial stocks were also stronger than the rest of the market.

The trio were the hardest-hit sectors earlier in the year on worries about the coming recession, which would cause demand for their products to vanish and saddle banks with bad loans.

Smaller stocks also rose more than the rest of the market, an indication that investors expect stronger growth ahead. Small-cap stocks have historically sunk more than their bigger rivals heading into downturns, in part because of their more limited financial strength, but rebounded harder in anticipation of recoveries. Friday’s 3.6% gain for the Russell 2000 was more than double those for big-stock indexes.

Stocks got off to a strong start earlier on Friday after a Chinese state media report said top U.S. and Chinese trade negotiators talked on the phone and are working to implement a trade deal. That helped calm building concerns that tensions between the world’s largest economies may flare up again.

The last thing investors want is another round of punishing tit-for-tat tariffs dragging even more on an economy already sliding into a severe recession.

In another sign of less pessimism in the market, the yield on the 10-year Treasury note rose to 0.68% from 0.63% late Thursday. That yield tends to move with investors’ expectations for the economy and inflation.

Benchmark U.S. crude oil rose $1.19, or 5.1%, to settle at $24.74 a barrel, continuing its strong week and recovering some more of its record-setting losses from earlier in the year. Brent crude oil, the international standard, rose $1.51, or 5.1% to $30.97 a barrel.

In Asia, Hong Kong’s Hang Seng added 1%, and stocks in Shanghai rose 0.8%. South Korea’s Kospi gained 0.9%. In Europe, France’s CAC 40 rose 1.1%, and Germany’s DAX rose 1.3%.

602

 

[noirua]

 

[Country Lad]

I think that is an old chart done a long time ago where his comparison failed - again.
The line marked as the DJIA Current Period is in fact up to early February 2014. It continued to rise and went another 10% over the next 7 months.

 

[bigdog]

ASX 200 expected to edge higher.
The ASX 200 looks set to continue its positive form on Monday. Current SPI futures are pointing to a 3 point gain at the open. This follows a strong end to the week on Wall Street despite record U.S. job losses. On Friday the Dow Jones rose 1.9%, the S&P 500 climbed 1.7%, and the Nasdaq index pushed 1.6% higher.

 

[bigdog]

Wall Street was split on Monday, as continued gains for technology and health care stocks helped cover up for more prevalent losses elsewhere.

The S&P 500 ended the day at a virtual standstill, up just 0.52 points at 2,930.32, despite a lot of movement going on underneath. It rallied back from an earlier loss of 0.9% in the morning.

The Dow Jones Industrial Average fell 109.33 points, or 0.4%, to 24,221.99, while the Nasdaq composite added 71.02, or 0.8%, to 9,192.34.

Through the muddled day, one of the market’s few points of clarity was that investors continue to love technology stocks.

Even with the coronavirus pandemic throwing the global economy into disarray, tech stocks in the S&P 500 have been remarkably resilient. They’re up 4.1% for 2020 as investors look for companies that can be winners in both a ”normal” and a stay-at-home economy.

Apple rose 1.6%, Nvidia added 3.2% to return to a record and Advanced Micro Devices climbed 4.8% for one of Monday’s biggest gains in the S&P 500.

This year’s second-best sector has been health care, which has trimmed its loss for 2020 to just 1%.

Biotech stocks were particularly strong Monday. And Cardinal Health had the biggest gain in the S&P 500, up 6.7%, after reporting stronger-than-expected earnings for its latest quarter, partly because of increased pharmaceutical sales due to the pandemic.

Those gains helped to make up for 69% of stocks falling in the S&P 500. It also leaves the index within reach of its highest level since early March.

ASX 200 expected to fall.
It looks set to be a weaker day of trade for the Australian share market on Tuesday. According to the latest SPI futures, the ASX 200 is expected to fall 20 points or 0.4% at the open. This follows a mixed night of trade on Wall Street which saw the Dow Jones fall 0.45%, the S&P 500 trade flat, and the Nasdaq index jump 0.8%.

https://www.usnews.com/news/busines...ixed-amid-hopes-for-recovery-from-virus-slump

Tech Stocks Keep Rallying, Help Keep Wall Street Steady
Wall Street was split on Monday, as continued gains for technology and health care stocks helped cover up for more prevalent losses elsewhere.
By Associated Press, Wire Service Content May 11, 2020, at 5:27 p.m.

By STAN CHOE and ALEX VEIGA, AP Business Writers

Wall Street was split on Monday, as continued gains for technology and health care stocks helped cover up for more prevalent losses elsewhere.

The S&P 500 ended the day at a virtual standstill, up just 0.52 points at 2,930.32, despite a lot of movement going on underneath. It rallied back from an earlier loss of 0.9% in the morning.

The Dow Jones Industrial Average fell 109.33 points, or 0.4%, to 24,221.99, while the Nasdaq composite added 71.02, or 0.8%, to 9,192.34.

Through the muddled day, one of the market’s few points of clarity was that investors continue to love technology stocks.

Even with the coronavirus pandemic throwing the global economy into disarray, tech stocks in the S&P 500 have been remarkably resilient. They’re up 4.1% for 2020 as investors look for companies that can be winners in both a ”normal” and a stay-at-home economy.

Apple rose 1.6%, Nvidia added 3.2% to return to a record and Advanced Micro Devices climbed 4.8% for one of Monday’s biggest gains in the S&P 500.

This year’s second-best sector has been health care, which has trimmed its loss for 2020 to just 1%.

Biotech stocks were particularly strong Monday. And Cardinal Health had the biggest gain in the S&P 500, up 6.7%, after reporting stronger-than-expected earnings for its latest quarter, partly because of increased pharmaceutical sales due to the pandemic.

Those gains helped to make up for 69% of stocks falling in the S&P 500. It also leaves the index within reach of its highest level since early March.

“People are looking ahead, and they’re saying, ‘OK, the pandemic has happened, and the damage has swept through our economy and our businesses, and now we’re planning on the growth after the carnage, so we’re valuing equities as if we’re going to go back to a decent growth environment,’” said Mike Zigmont, head of trading and research at Harvest Volatility Management.

The S&P 500 has rallied 31% since late March, at first on relief after the Federal Reserve and Capitol Hill pledged massive amounts of aid for the economy. More recently, some investors have focused on the possibility of a strong recovery later this year, after governments reopen economies and lift business-shutdown orders meant to slow the spread of the coronavirus.

That optimistic view took some hits Monday, though, as worries rose about the possibility of new waves of infections hitting countries that are further ahead in lifting lockdown measures. Investors pointed to small but disconcerting increases of infections in South Korea, China and elsewhere.

The worries helped lead companies whose profits are most closely tied to the strength of the economy to the market’s biggest losses.

“I don’t know why investors are feeling so comfortable with those expectations,” Zigmont said of forecasts for a turnaround in profit growth in 2021 and 2022. “They are so far away, and there’s so much uncertainty between now and then, and yet investors seem to be OK” with paying up in anticipation that companies will hit those targets.

Financial stocks fell 1.9% for the biggest loss among the 11 sectors that make up the index. Bank stocks have been hit hard this year on worries that the recession will lead to a wave of households and businesses defaulting on their loans. Bank of America dropped 4.2% Monday, and Citigroup lost 4.9%.

Energy companies and raw-material producers also fell on worries that a weaker global economy will need less oil and fewer basic building blocks.

The data streaming in on the economy remain oppressively bad. After a report on Friday showed U.S. employers cut a record-setting 20.5 million jobs in April, Italy reported Monday its largest-ever drop in industrial production. More data reports this week include U.S. unemployment claims and retail sales and Australian jobs.

Companies remain uncertain about the future, with many opting to give no financial forecasts during their latest quarterly earnings reports.

Even outside the possibility of a resurgence of infections, many analysts see other reasons for skepticism. Strategists at Goldman Sachs said the market appears to be downplaying a drop-off in buybacks and dividends as companies look to preserve cash, the threat of more U.S.-China trade tensions and the possibility that the upcoming U.S. elections could lead to higher corporate tax rates.

Most of all, companies themselves are talking about how uncertain the recovery looks, which stands in stark relief to the quick, vigorous rebound that the stock market seems to be assuming will happen.

Japan’s Nikkei 225 rose 1%, while stocks in Shanghai were close to flat. South Korean stocks fell 0.5%. In Europe, the French CAC 40 fell 1.3%, and Germany’s DAX lost 0.7%. The FTSE 100 in London edged up 0.1%.

The yield on the 10-year Treasury rose to 0.70% from 0.68% late Friday.

Benchmark U.S. crude oil fell 60 cents, or 2.4%, to settle at $24.14 a barrel Monday. Brent crude oil, the international standard, fell $1.34, or 4.3% to $29.60 a barrel.

 

[bigdog]

Worries about the downside of reopening the economy too soon are weighing on markets, and Wall Street fell Tuesday to its biggest loss since the start of the month.

The S&P 500 dropped 2.1% after spending much of the day drifting between small gains and losses, as investors debate whether the lifting of lockdowns across U.S. states and the world will drive an economic rebound or just more coronavirus infections.

The concerns were summed up in straightforward testimony from the top U.S. infectious diseases expert. Dr. Anthony Fauci told Congress that if the country reopens too soon, it could not only cause “some suffering and death that could be avoided, but could even set you back on the road to try to get economic recovery.”

The S&P 500 fell 60.20 points to 2,870.12, with the losses accelerating sharply in the last hour of trading. Stocks of companies whose profits are most closely tied to the strength of the economy had some of the market’s sharpest drops. Treasury yields also fell in a sign of increased caution.

The Dow Jones Industrial Average fell 457.21 points, or 1.9%, to 23,764.78, and the Nasdaq composite lost 189.79, or 2.1%, to 9,002.55.

Governments around the world and in some U.S. states have already begun gradually lifting restrictions on businesses, which were meant to slow the spread of the coronavirus outbreak but have also caused a severe recession. Expectations that growth will resume following the reopenings have helped drive the S&P 500 up 28% since late March.

But South Korea and other countries further ahead in removing restrictions have also seen small but notable increases in infections recently. That’s raising worries about possible second waves of infections.

ASX 200 expected to fall again.
The Australian share market looks set to extend its decline on Wednesday. According to the latest SPI futures, the ASX 200 is expected to fall 70 points or 1.3% at the open. This follows a very poor night of trade on Wall Street which saw the Dow Jones fall 1.9%, the S&P 500 drop 2.05%, and the Nasdaq index tumble 2.06%. Investors were selling equities due to reopening jitters, with U.S. banks particularly poor performers.

https://www.usnews.com/news/busines...ecline-on-jitters-over-new-outbreaks-of-virus

Wall Street Drops After Reopening Worries Lead to Late Slide
Wall Street fell to its biggest loss since the start of the month on worries about the downside of reopening the economy too soon.
By Associated Press, Wire Service Content May 12, 2020, at 4:50 p.m

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

Worries about the downside of reopening the economy too soon are weighing on markets, and Wall Street fell Tuesday to its biggest loss since the start of the month.

The S&P 500 dropped 2.1% after spending much of the day drifting between small gains and losses, as investors debate whether the lifting of lockdowns across U.S. states and the world will drive an economic rebound or just more coronavirus infections.

The concerns were summed up in straightforward testimony from the top U.S. infectious diseases expert. Dr. Anthony Fauci told Congress that if the country reopens too soon, it could not only cause “some suffering and death that could be avoided, but could even set you back on the road to try to get economic recovery.”

The S&P 500 fell 60.20 points to 2,870.12, with the losses accelerating sharply in the last hour of trading. Stocks of companies whose profits are most closely tied to the strength of the economy had some of the market’s sharpest drops. Treasury yields also fell in a sign of increased caution.

The Dow Jones Industrial Average fell 457.21 points, or 1.9%, to 23,764.78, and the Nasdaq composite lost 189.79, or 2.1%, to 9,002.55.

Governments around the world and in some U.S. states have already begun gradually lifting restrictions on businesses, which were meant to slow the spread of the coronavirus outbreak but have also caused a severe recession. Expectations that growth will resume following the reopenings have helped drive the S&P 500 up 28% since late March.

But South Korea and other countries further ahead in removing restrictions have also seen small but notable increases in infections recently. That’s raising worries about possible second waves of infections.

“What we’re dealing with, both today and the last couple of weeks, is the optimism behind the reopening and asking: Are we going to be reopening too soon?” said Bill Northey, senior investment director at U.S. Bank Wealth Management.

”We’re in an unknowable scenario at this point in time,” he said.

The market will essentially be in wait-and-see mode for the next two to four weeks as investors gauge how the reopenings underway in several states are going, said Sal Bruno, chief investment officer at IndexIQ.

“It all stems from the number of new cases and the number of reported cases,” he said. “If we slow that to a trickle, that’s going to be hugely positive for the market because it will give people more confidence that the unemployment rate will go down quicker.”

After dropping by roughly a third from February into late March on worries about the coming recession, the S&P 500 began recovering after the Federal Reserve and Capitol Hill flooded the economy with trillions of dollars in aid. The latest implementation of that came Tuesday, when the New York Fed began buying funds to support the corporate bond market.

With all that unprecedented support in place, markets are now focusing much more on when the economy can resume growing and less on reports coming in daily that show how badly the economy has been hurt by the pandemic. Inflation in the United States was just 0.3% last month from a year earlier, for example, but the report had limited effect on markets.

Treasurys were some of the first investments to signal the economic devastation coming from the pandemic. The yield on the 10-year Treasury fell to 0.66% from 0.72% late Monday. It tends to fall when investors are downgrading their expectations for the economy and inflation.

Financial stocks and other companies whose profits are very dependent on the strength of the economy had some of the sharpest losses. Smaller stocks also fell more than the rest of the market, as they usually do when worries are on the rise. The Russell 2000 index of small-cap stocks lost 45.70, or 3.5%, to 1,275.54.

Many companies are opting to give no financial forecasts as they release their latest quarterly earnings reports, due to the overwhelming uncertainty over what lies ahead. That was true of Toyota, whose shares fell 2% Tuesday as it reported its net profit dropped nearly 90% in the January-March quarter from a year earlier.

In the United States, Simon Property Group likewise said it’s currently impossible to predict future results amid the pandemic, and it withdrew its financial forecast for 2020. But it also said it plans to have about half of its U.S. shopping malls reopened within the next week, and its stock wavered before falling 1%.

Uber rose 2.4% after analysts said news reports of a possible takeover attempt of food delivery company Grubhub make strategic sense. Grubhub jumped 29.1%.

A barrel of U.S. oil to be delivered in June rose 6.8% to $25.78 per barrel. Brent crude, the international standard, added 1.2% to $29.98.

In Europe, Germany’s DAX was down 0.1%, while France’s CAC 40 was down 0.4%. The FTSE 100 in London was up 0.9%. In Asia, Japan’s Nikkei 225 slipped 0.1%, Hong Kong’s Hang Seng fell 1.4% and South Korea’s Kospi lost 0.7%.

___

 

[bigdog]

Wall Street’s earlier bets that the economy can make a relatively quick rebound from the coronavirus pandemic suddenly don’t look so good.

The S&P 500 fell 1.7% Wednesday for its second straight loss, with the biggest hits targeting companies that most need a healthy economy for their profits to grow. Treasury yields also sank in a sign of pessimism after Federal Reserve Chair Jerome Powell warned about the threat of a prolonged recession.

Powell said the U.S. government may need to pump even more aid into the economy, which is bleeding millions of jobs every week. His comments came one day after the top U.S. infectious diseases expert, Dr. Anthony Fauci, warned of the dangers of reopening the economy too soon. Together, they threw some some cold pessimism onto hopes rising recently among some investors that growth could resume later this year as economies reopen.

”At this stage now, we think there are more risks to the downside than the upside,” said Liz Ann Sonders, chief investment strategist at Charles Schwab.

”Consumers in general are going to be more wary and more interested in boosting savings rates and are unlikely to come back to a world of consumption anywhere near what it looked like before,” she said.

The S&P 500 fell 50.12 points to 2,820.00. The Dow Jones Industrial Average dropped 516.81 points, or 2.2%, to 23,247.97, and the Nasdaq composite lost 139.38, or 1.5%, to 8,863.17.

It’s the latest wobble for a market that has been wavering in recent weeks after coming off its best month in a generation. The S&P 500’s 26% rally got going in late March following promises of massive aid from the Federal Reserve and Capitol Hill. It then accelerated on optimism as several countries and U.S. states began relaxing restrictions on businesses that were meant to slow the spread of the coronavirus but also caused a severe recession.

ASX 200 set to tumble.
It looks set to be a poor day of trade for the ASX 200 on Thursday. According to the latest SPI futures, the benchmark index is expected fall 1% or 53 points at the open. Over on Wall Street the Dow Jones fell 2.2%, the S&P 500 dropped 1.75%, and the Nasdaq index fell 1.55%. Investors were selling shares after Fed Chairman Jerome Powell warned that more needs to be done to help the U.S. economy.

https://www.usnews.com/news/busines...-mixed-as-investors-weigh-virus-risk-stimulus

Stocks Drop Again on Worries About Slow Recovery for Economy
Stocks fell to their second straight loss on Wall Street Wednesday, weighed down by worries about a slow recovery for the economy.
By Associated Press, Wire Service Content May 13, 2020, at 4:43 p.m.

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

Wall Street’s earlier bets that the economy can make a relatively quick rebound from the coronavirus pandemic suddenly don’t look so good.

The S&P 500 fell 1.7% Wednesday for its second straight loss, with the biggest hits targeting companies that most need a healthy economy for their profits to grow. Treasury yields also sank in a sign of pessimism after Federal Reserve Chair Jerome Powell warned about the threat of a prolonged recession.

Powell said the U.S. government may need to pump even more aid into the economy, which is bleeding millions of jobs every week. His comments came one day after the top U.S. infectious diseases expert, Dr. Anthony Fauci, warned of the dangers of reopening the economy too soon. Together, they threw some some cold pessimism onto hopes rising recently among some investors that growth could resume later this year as economies reopen.

”At this stage now, we think there are more risks to the downside than the upside,” said Liz Ann Sonders, chief investment strategist at Charles Schwab.

”Consumers in general are going to be more wary and more interested in boosting savings rates and are unlikely to come back to a world of consumption anywhere near what it looked like before,” she said.

The S&P 500 fell 50.12 points to 2,820.00. The Dow Jones Industrial Average dropped 516.81 points, or 2.2%, to 23,247.97, and the Nasdaq composite lost 139.38, or 1.5%, to 8,863.17.

It’s the latest wobble for a market that has been wavering in recent weeks after coming off its best month in a generation. The S&P 500’s 26% rally got going in late March following promises of massive aid from the Federal Reserve and Capitol Hill. It then accelerated on optimism as several countries and U.S. states began relaxing restrictions on businesses that were meant to slow the spread of the coronavirus but also caused a severe recession.

Many professional investors have been skeptical of the rally, though, saying it was overdone given how much uncertainty exists about how long the recession will last. And Wednesday’s worries that the recovery may not be as strong or as rapid as investors had been banking on just a week ago hit stocks whose profits are closely tied to the economy’s strength particularly hard.

Energy producers in the S&P 500 fell 4.4% for the biggest loss among the 11 sectors that make up the index. Financial stocks were close behind with a 3% loss. Those two areas of the market have been some of this year’s biggest losers this year on expectations for less demand for oil and lower profit from making loans.

Smaller stocks also took worse losses than the rest of the market, which typically happens when worries about the economy’s strength are on the rise. The Russell 2000 index of small-cap stocks dropped 3.3%.

“The market has celebrated discussions of reopening, but there’s a hard reality of: What does reopening even mean?” said Willie Delwiche, investment strategist at Baird. “And if the market was taking an optimistic view of reopening, you’d see more cyclical leadership start to emerge, things like financials, small caps and industrials.”

Earlier in the day, strength for technology stocks had helped to steady the market momentarily. Tech stocks have been among the market’s few winners this year, as investors hunt for companies that can profit even in a stay-at-home economy. But the gains for tech quickly faded, and nearly 90% of the stocks in the S&P 500 fell Wednesday.

Trading was erratic again, and the S&P 500 went from an early loss of 1.1% to a gain of 0.1% and back to more losses, all in the span of 90 minutes. The volatility echoes Tuesday’s action, when the S&P 500 was close to flat for much of the day before a sudden slide in the last hour of trading left it down 2.1%.

Analysts say they expect the market to remain in a wait-and-see approach for weeks as investors gauge how economic reopenings underway are going. Investors want to see if second waves of coronavirus infections occur if governments lift their restrictions on businesses too soon. Another possible flare-up in trade tensions between the United States and China has also recently weighed on markets around the world.

In China, where the virus first surfaced, authorities announced seven new cases on Wednesday. Six were in Jilin province, in the northeast, where alert levels were raised and rail connections suspended. South Korea reported 26 additional cases of the coronavirus over the past 24 hours amid a new spike in infections linked to nightclubs in Seoul.

In Asian stock markets, Japan’s Nikkei 225 slipped 0.5%, the Hang Seng in Hong Kong lost 0.3% and South Korea’s Kospi rose 0.9%. In Europe, Germany’s DAX lost 2.6%, and France’s CAC 40 dropped 2.9%. The FTSE 100 in London lost 1.5%.

The yield on the 10-year Treasury fell to 0.65% from 0.69% late Tuesday. A barrel of U.S. oil to be delivered in June fell 49 cents, or 1.9%, to settle at $25.29. Brent crude, the international standard, fell 79 cents, or 2.6% to $29.19 a barrel.

 

[bigdog]

Wall Street rallied back from a sharp morning drop on Thursday, led by a resurgence for some of the year’s most beaten-down stocks.

The S&P 500 climbed 1.2% in another scattershot day of trading, with many stocks flipping from the bottom of the leaderboard to the top following a few sharp reversals in momentum. The zig-zag trading followed up on earlier losses for Asian and European stocks, while Treasury yields sank in a sign of increased pessimism.

It’s the latest wobble for Wall Street, which has been wavering for weeks as it digests gargantuan moves the market made earlier this year, first down more than 30% on worries about the coming recession and then up more than 30% on hopes for a relatively quick rebound.

Trading has been particularly erratic this week, as investors rethink bets that the reopening of economies around the world will allow for a relatively quick return of growth. Another possible flare-up in tensions between the world’s largest economies is also hitting markets, with comments from President Donald Trump about China further weighing on them Thursday.

The S&P 500 rose 32.50 to 2,852.20 after rallying back from an early-morning loss of 1.9%. The Dow Jones Industrial Average rose 377.37, or 1.6%, to 23,625.34 after earlier being down 458 points. The Nasdaq composite gained 80.55, or 0.9%, to 8,943.72 after erasing its earlier loss of 1.8%.

Stocks have suddenly changed direction several times this week, oftentimes late in the trading day, with analysts often seeing few easy explanations for why.

“Instead of it being a stock market where everything moves in the same direction — up and down — whether it’s large, small, growth or value, it’s more of a market of stocks of individual companies,” said Tom Martin, senior portfolio manager at Globalt Investments.

“What you’re seeing is this churning within the market, but not a lot of broad movement in the total market,” he said.

ASX 200 set to rebound.
The ASX 200 looks set to rebound from this decline on Friday. According to the latest SPI futures, the benchmark index is expected to jump 0.95% or 51 points at the open. This follows a wild night of trade on Wall Street which eventually saw the Dow Jones rise 1.6%, the S&P 500 climb 1.15%, and the Nasdaq push 0.9% higher.

https://www.usnews.com/news/busines...fall-as-hopes-fade-for-quick-economic-rebound

Another Late Reversal Upends Wall Street, This Time Higher
Wall Street rallied back from a sharp morning drop on Thursday, led by a resurgence for some of the year’s most beaten-down stocks.
By Associated Press, Wire Service Content May 14, 2020, at 4:53 p.m.

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

Wall Street rallied back from a sharp morning drop on Thursday, led by a resurgence for some of the year’s most beaten-down stocks.

The S&P 500 climbed 1.2% in another scattershot day of trading, with many stocks flipping from the bottom of the leaderboard to the top following a few sharp reversals in momentum. The zig-zag trading followed up on earlier losses for Asian and European stocks, while Treasury yields sank in a sign of increased pessimism.

It’s the latest wobble for Wall Street, which has been wavering for weeks as it digests gargantuan moves the market made earlier this year, first down more than 30% on worries about the coming recession and then up more than 30% on hopes for a relatively quick rebound.

Trading has been particularly erratic this week, as investors rethink bets that the reopening of economies around the world will allow for a relatively quick return of growth. Another possible flare-up in tensions between the world’s largest economies is also hitting markets, with comments from President Donald Trump about China further weighing on them Thursday.

The S&P 500 rose 32.50 to 2,852.20 after rallying back from an early-morning loss of 1.9%. The Dow Jones Industrial Average rose 377.37, or 1.6%, to 23,625.34 after earlier being down 458 points. The Nasdaq composite gained 80.55, or 0.9%, to 8,943.72 after erasing its earlier loss of 1.8%.

Stocks have suddenly changed direction several times this week, oftentimes late in the trading day, with analysts often seeing few easy explanations for why.

“Instead of it being a stock market where everything moves in the same direction — up and down — whether it’s large, small, growth or value, it’s more of a market of stocks of individual companies,” said Tom Martin, senior portfolio manager at Globalt Investments.

“What you’re seeing is this churning within the market, but not a lot of broad movement in the total market,” he said.

Thursday’s turnaround was powered in large part by a rally for stocks that have been pummeled for much of this year: banks.

Financial stocks in the S&P 500 jumped 2.6% for the biggest gain among the 11 sectors that make up the index. Wells Fargo rose 6.8%, and Bank of America added 4%. Through much of this year, investors have sold bank stocks on worries that low interest rates and the severe recession will mean less profit for making loans.

Energy stocks, another corner of the market that’s been hit hard this year by recession worries, also climbed. They benefited from a rise in the price of oil after the International Energy Agency gave a new forecast for oil demand this quarter that wasn’t quite as bad as its earlier one.

By the end of trading, more than 75% of stocks in the S&P 500 were higher. In the morning, more than 90% were down.

Before the recession hit, U.S. stocks quickly lost just over a third of their value as investors anticipated an avalanche of layoffs hitting the economy. Those fears have turned out to be true, and a report on Thursday showed that nearly 3 million U.S. workers filed for unemployment benefits. That brings the total to roughly 36 million in the two months since the pandemic caused widespread orders for people to stay at home and businesses to shut down.

But stocks began climbing in late March after massive amounts of aid promised by the Federal Reserve and Capitol Hill convinced markets that the worst-case scenario of a financial crisis wouldn’t be happening. Gains accelerated on hopes that the recession, while severe, could be relatively short and that the economy could resume its growth as shutdown orders lift.

Many professional investors have warned the rally was overdone, though, given how much uncertainty exists about how long the recession will last. On Wednesday, Federal Reserve Chair Jerome Powell warned this could become a prolonged downturn, while the top infections diseases expert in the U.S. said Tuesday that reopening the economy too quickly could backfire and lead to more deaths.

Recently, worries about renewed U.S.-China tensions have also weighed on markets. A bruising trade war between the two had dragged on the global economy before the pandemic hit.

“I have a very good relationship,” with China’s leader, Xi Jinping, Trump said in an interview with Fox Business Network, “but I just — right now, I don’t want to speak with him. I don’t want to speak with him.”

Trump also said the government is considering barring Chinese stocks trading on U.S. exchanges unless they follow U.S. accounting rules.

“We have all the challenges internally with the economy being shut down, but us getting into a conflict with China adds an additional dimension of uncertainty,” said Mark Hackett, chief of investment research at Nationwide.

The yield on the 10-year Treasury fell to 0.62% from 0.64% late Wednesday. It tends to fall when investors are downgrading their expectations for the economy and inflation.

Analysts say they expect the market to remain in a wait-and-see approach for weeks as investors gauge how economic reopenings underway are going. Investors want to see if second waves of coronavirus infections occur if governments lift their restrictions on businesses too soon.

 

[Dona Ferentes]

Stocks have suddenly changed direction several times this week, oftentimes late in the trading day, with analysts often seeing few easy explanations for why.

“Instead of it being a stock market where everything moves in the same direction — up and down — whether it’s large, small, growth or value, it’s more of a market of stocks of individual companies,” said [some geezer]. "What you're seeing is this churning within the market, but not a lot of broad movement in the total market,” he said.

could well be true; and volatility has fallen away.

 

[InsvestoBoy]

“Instead of it being a stock market where everything moves in the same direction — up and down — whether it’s large, small, growth or value, it’s more of a market of stocks of individual companies,” said Tom Martin, senior portfolio manager at Globalt Investments.

“What you’re seeing is this churning within the market, but not a lot of broad movement in the total market,” he said.

Traditionally conditions of low pairwise correlations are bullish. Watch out if correlations rise.