NYSE Dow Jones finished today at:

[bigdog]

Wall Street’s enthusiasm about the reopening economy sent stocks scrambling even higher on Monday, and the Nasdaq composite wiped away the last of its coronavirus-induced losses to set a record.

The broader S&P 500 is now up slightly for the year and back within 4.5% of its own record as optimism strengthens that the worst of the recession may have already passed. Stocks that would benefit most from an economy that’s growing again rose the most, including smaller companies, airlines and oil producers.

The S&P 500 rallied 38.46 points, or 1.2%, to 3,232.39 and is at its highest level since February, which a panel of economists said on Monday is the month when the recession officially began. That’s when employment set a peak before tumbling after businesses shut down across the country to slow the outbreak.

The Dow Jones Industrial Average rose 461.46, or 1.7%, to 27,572.44. The Nasdaq composite, which is more heavily weighted to the big technology stocks that held up the best earlier this year, gained 110.66, or 1.1%, to 9,924.74.

Stocks have been rising since late March, at first on relief after the Federal Reserve and Capitol Hill pledged to support the economy and more recently on hopes that the recovery may happen more quickly than forecast.

Those hopes got a huge boost Friday when the U.S. government said that employers added 2.5 million jobs to their payrolls last month. Economists were expecting to see 8 million more lost.

States across the country are slowly relaxing restrictions on businesses meant to slow the spread of the coronavirus outbreak, which is raising expectations that the economy can pull out of its coma. New York City, which has been the country’s hardest-hit, began allowing retailers and some other businesses to reopen on Monday with some restrictions.

ASX trading was closed yesterday for Queens Birthday Holiday

ASX 200 to surge higher.
The ASX 200 looks set to start the week with a very strong gain after U.S. markets charged notably higher on Friday and Monday night. According to the latest SPI futures, the benchmark index is expected to open the week 147 points or 2.45% higher this morning. Overnight on Wall Street the Dow Jones jumped 1.7%, the S&P 500 stormed 1.2% higher, and the Nasdaq index rose 1.1%. The Dow Jones is up 4.9% over the last two trading days after stronger than expected U.S. jobs data.

https://www.usnews.com/news/busines...-advance-on-wall-st-jobs-rally-opec-plus-deal

Stocks Vault Higher, as Nasdaq Hits Record on Economy Hopes
Stocks scrambled even higher Monday on Wall Street's enthusiasm about the reopening economy, and the Nasdaq composite set a record.
By Associated Press, Wire Service Content June 8, 2020, at 5:53 p.m.

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

NEW YORK (AP) — Wall Street’s enthusiasm about the reopening economy sent stocks scrambling even higher on Monday, and the Nasdaq composite wiped away the last of its coronavirus-induced losses to set a record.

The broader S&P 500 is now up slightly for the year and back within 4.5% of its own record as optimism strengthens that the worst of the recession may have already passed. Stocks that would benefit most from an economy that’s growing again rose the most, including smaller companies, airlines and oil producers.

The S&P 500 rallied 38.46 points, or 1.2%, to 3,232.39 and is at its highest level since February, which a panel of economists said on Monday is the month when the recession officially began. That’s when employment set a peak before tumbling after businesses shut down across the country to slow the outbreak.

The Dow Jones Industrial Average rose 461.46, or 1.7%, to 27,572.44. The Nasdaq composite, which is more heavily weighted to the big technology stocks that held up the best earlier this year, gained 110.66, or 1.1%, to 9,924.74.

Stocks have been rising since late March, at first on relief after the Federal Reserve and Capitol Hill pledged to support the economy and more recently on hopes that the recovery may happen more quickly than forecast.

Those hopes got a huge boost Friday when the U.S. government said that employers added 2.5 million jobs to their payrolls last month. Economists were expecting to see 8 million more lost.

States across the country are slowly relaxing restrictions on businesses meant to slow the spread of the coronavirus outbreak, which is raising expectations that the economy can pull out of its coma. New York City, which has been the country’s hardest-hit, began allowing retailers and some other businesses to reopen on Monday with some restrictions.

That puts more scrutiny on economic reports this week as investors look for confirmation that Friday’s jobs report was a true inflection point and not just an aberration.

Even if the economy did hit its bottom a month or two ago, economists warn that many risks are still looming over a very long road back to full recovery. Critics are also still saying the stock market may have risen too quickly and may be setting investors up for disappointment, with the biggest risk being another wave of infections that leads to more lockdowns.

“It all starts with the virus itself, and there haven’t been any immediate rise in infections,” said Tom Martin, senior portfolio manager at Globalt Investments. He’s still far from giving the all-clear.

“There’s a lot of risk that businesses and the economy don’t recover as fast,” he said. “When money starts running out in July, are we enough on a path to getting people employed and businesses open?”

Among this week’s economic highlights are reports on inflation and the number of workers applying for jobless benefits. The headliner, though, is likely the Federal Reserve’s meeting on interest rates in the middle of the week.

The Fed has already promised unprecedented amounts of support to keep markets running smoothly, but will the recent upturn in job growth mean it will pull back at all?

Treasury yields have been climbing in recent days, reflecting rising expectations in the market for the economy and inflation. The 10-year Treasury yield dipped to 0.87% from 0.90% late Friday, but it’s up sharply from 0.66% a week earlier.

Too quick a rise in yields could slow spending and the anticipated economic recovery, though. It can also be a heavy weight on the stock market.

Stocks that would benefit most from a growing economy, meanwhile, led the market on Monday to continue their recent trend.

Energy producers, banks and industrial companies were rising more than the rest of the market, and nearly 80% of the stocks in the S&P 500 were higher.

Travel-related stocks were notable standouts as investors raised expectations for a reopening economy. Norwegian Cruise Line, Carnival, Alaska Air Group and United Airlines all rose more than 14%.

Smaller company stocks also climbed more than the rest of the market, which often happens when expectations for the economy are rising. The Russell 2000 index of small-cap stocks rose 2%.

But several titans were lagging behind the rest of the market, a turnaround from earlier this year when investors piled into the few companies that could hold up in a weak, stay-at-home economy. Facebook rose a modest 0.3%, while Microsoft was up 0.6% and Netflix was virtually flat.

In global markets, Japan’s Nikkei 225 index jumped 1.4% after the government reported the economy contracted at a 2.2% annual rate in the January-March quarter, not as bad as initially estimated.

Indexes in other countries were more subdued, with European markets down modestly.

Oil fell, even after major oil producing nations agreed over the weekend to extend a cut to production through the end of July to counter the blow to demand from the coronavirus pandemic.

Oil had already climbed last week on anticipation of the move, and OPEC officials did not commit to extending the cuts past July or establishing a way to enforce the production limits.

Benchmark U.S. crude oil for July delivery fell $1.36 to settle at $38.19 a barrel Monday. Brent crude oil for August delivery fell $1.50 to $40.80 a barrel.

 

[bigdog]

Wall Street hit the brakes Tuesday, a day after its remarkable, weekslong rally brought the S&P 500 back to positive for the year and the Nasdaq to a record high.

The benchmark index fell 0.8%, its largest loss in almost three weeks, as traders cashed in on some of the market’s recent gains. Financial, industrial and health care stocks led the slide. Technology companies were among the gainers, helping to push the Nasdaq to another all-time high.

Skeptics have been saying for weeks that Wall Street’s huge rally, which reached 44.5% between late March and Monday, may have been overdone. The economy has given glimmers of hope that the recession could end relatively quickly as governments lift their lockdown orders, but the strength and speed of the stock market’s rebound has easily outpaced expectations for a recovery in the broader economy and corporate profits.

“Today is actually a pretty mild digestion of recent gains, and I think it’s long overdue,” said Sam Stovall, chief investment strategist at CFRA.

The S&P 500 lost 25.21 points to 3,207.18. The index is now back in the red for the year and remains 5.3% below its all-time high set in February. The Dow Jones Industrial Average dropped 300.14 points, or 1.1%, to 27,272.30. The Nasdaq composite rose 29.01 points, or 0.3%, to 9,953.75.

In another sign of increased caution, the yield on the 10-year Treasury yield fell to 0.83% from 0.88% late Monday. It tends to move with investors’ expectations of the economy and inflation, though it’s still well above the 0.64% level where it started last week.

The next big milestone for markets is coming Wednesday, when the Federal Reserve announces its decision on monetary policy following a two-day meeting. The Fed’s promise of immense, unprecedented amounts of aid helped stocks begin their rally, and investors want to see what their reaction will be to the recent upturn in jobs numbers.

ASX 200 to fall.
The ASX 200 looks set to run out of steam on Wednesday and drop lower. According to the latest SPI futures, the benchmark index is expected to fall 91 points or 1.5% at the open. This follows a mixed night of trade on Wall Street which saw the Dow Jones fall 1.1%, the S&P 500 drop 0.8%, and the Nasdaq push 0.3% higher. The latter index hit a record high during last night’s trade.

https://apnews.com/22cadbd2bcc34ecc72bac3fe31a01170

Wall Street hits the brakes after strong, weekslong rally
By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGAan hour ago

Wall Street hit the brakes Tuesday, a day after its remarkable, weekslong rally brought the S&P 500 back to positive for the year and the Nasdaq to a record high.

The benchmark index fell 0.8%, its largest loss in almost three weeks, as traders cashed in on some of the market’s recent gains. Financial, industrial and health care stocks led the slide. Technology companies were among the gainers, helping to push the Nasdaq to another all-time high.

Skeptics have been saying for weeks that Wall Street’s huge rally, which reached 44.5% between late March and Monday, may have been overdone. The economy has given glimmers of hope that the recession could end relatively quickly as governments lift their lockdown orders, but the strength and speed of the stock market’s rebound has easily outpaced expectations for a recovery in the broader economy and corporate profits.

“Today is actually a pretty mild digestion of recent gains, and I think it’s long overdue,” said Sam Stovall, chief investment strategist at CFRA.

The S&P 500 lost 25.21 points to 3,207.18. The index is now back in the red for the year and remains 5.3% below its all-time high set in February. The Dow Jones Industrial Average dropped 300.14 points, or 1.1%, to 27,272.30. The Nasdaq composite rose 29.01 points, or 0.3%, to 9,953.75.

In another sign of increased caution, the yield on the 10-year Treasury yield fell to 0.83% from 0.88% late Monday. It tends to move with investors’ expectations of the economy and inflation, though it’s still well above the 0.64% level where it started last week.

Wall Street has been generally rising since late March, at first on relief following emergency rescues by the Federal Reserve and Congress. More recently, investors have begun piling into companies that would benefit most from a reopening economy that’s growing again.

Banks, airlines, energy companies and others that rely heavily on economic growth have been leading the way in recent weeks. They got a big boost on Friday when the government said that employers added jobs to their payrolls last month, even though economists expected millions to be cut. Investors took it as a sign that the economy could pull out of the recession that began in February relatively quickly.

Those companies went into reverse on Tuesday. American Airlines and Alaska Air Group both fell more than 8% a day after they were near the top of the leaderboard. Marathon Oil skidded 9.1%.

Travel-related companies that have been among the hardest-hit stocks due to the outbreak piled up more losses. Norwegian Cruise Line sank 10.2%, while Carnival slid 7.5%.

Technology and communication services stocks were among the gainers. Chipmaker Advanced Micro Devices climbed 6.5% and Netflix, a big winner during the coronavirus lockdown, gained 3.5%.

Smaller stocks also pulled back following a 10.2% rally in a little more than a week. The Russell 2000 index of small-cap stocks fell 29.84 points, or 1.9%, to 1,507.05.

European stock markets closed broadly lower. Germany’s DAX lost 1.6% after the country reported that its exports fell by a quarter in April. France’s CAC 40 also slid 1.6%, and the FTSE 100 in London dropped 2.1%. Asian markets ended mixed.

Oil prices rose. Benchmark U.S. crude oil for July delivery rose 2% to settle at $38.94 a barrel. Brent crude oil for August delivery rose 0.9% to $41.18 a barrel.

Investors have grown to expect negative economic data, given the widespread impact on businesses and consumers from the outbreak, and are more likely to react to unexpected positive news, like Friday’s surprising jobs report, Stovall said.

“Unless — since so many states are now reopening — we start to see a pretty sharp upward tick in virus cases,” he said. “Then, I think, Wall Street starts to worry that the government will start leaning toward shutting down once again.”

The next big milestone for markets is coming Wednesday, when the Federal Reserve announces its decision on monetary policy following a two-day meeting. The Fed’s promise of immense, unprecedented amounts of aid helped stocks begin their rally, and investors want to see what their reaction will be to the recent upturn in jobs numbers.

 

[bigdog]

Stocks closed a choppy day on Wall Street with broad losses Wednesday, despite fresh assurances from the Federal Reserve that it would keep interest rates low through 2022 and would continue buying bonds to help markets function smoothly.

The S&P 500 fell 0.5%, extending losses from a day earlier. The benchmark index had briefly climbed 0.5% following the release of the central bank’s latest policy statement. Most sectors finished lower, but a surge in technology sector stocks helped push the Nasdaq above 10,000 for the first time, giving the index its third record high close in a row. Bond yields were broadly lower, reflecting caution among investors.

The Fed has cut its benchmark short-term rate to near zero as part of a historic effort to gird the stock market and U.S. economy from the coronavirus pandemic’s economic ravages. The central bank made clear Wednesday that it will keep providing support by buying bonds to maintain low borrowing rates. It also forecast no rate hike through 2022, which could make it easier for consumers and businesses to borrow and spend enough to sustain an economy depressed by business shutdowns and high unemployment.

The move to leave its key interest rate unchanged wasn’t a surprise to investors, but the fact that nearly all of the members of the central bank’s Federal Open Market Committee foresee no rate hike through 2022 was noteworthy, said Brian Nick, chief investment strategist at Nuveen.

“What you have on the FOMC is unanimity that rates ought to stay low and that their communication should continue to emphasize that they’re not going to raise interest rates, absent a material improvement in the economy,” he said.

The combination of low interest rates and low inflation has been a key driver for gains in big technology companies that can grow almost regardless of the economy.

“That’s been the magic formula for growth stocks,” Nick said.

The S&P 500 dropped 17.04 points to 3,190.14. The Dow Jones Industrial Average fell 282.31 points, or 1%, to 26,989.99. The Nasdaq composite gained 66.59 points, or 0.7%, to 10,020.35. Small company stocks bore the brunt of the selling. The Russell 2000 index lost 39.66 points, or 2.6%, to 1,467.39.

Wall Street has been generally rising since late March, at first on relief following emergency rescues by the Fed and Congress. More recently, investors have begun piling into companies that would benefit most from a reopening economy that’s growing again. The S&P 500, a benchmark for many index funds, is now within 6% of reclaiming the all-time high it reached in February.

ASX 200 expected to drop lower.
The ASX 200 looks set to end its winning streak on Thursday. According to the latest SPI futures, the benchmark index is expected to drop 73 points or 1.2% at the open. This follows another mixed night of trade on Wall Street overnight. The Dow Jones dropped 1.05%, the S&P 500 fell 0.5%, and the Nasdaq defied the selling once again with a 0.7% gain.

Tech shares could rise.
Although the market is expected to sink lower today, Australian tech shares such as Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) could defy this and push higher. The local tech sector has a habit of following the lead of the Nasdaq index, which stormed higher and closed above 10,000 points for the first time.

https://www.usnews.com/news/busines...res-mostly-higher-ahead-of-fed-policy-meeting

Stocks End Mostly Lower, Even as Nasdaq Tops 10,000 Points
Stocks ended a bumpy day mostly lower Wednesday despite assurances from the Federal Reserve that it would keep interest rates low through 2022 and would continue buying bonds to help markets function smoothly.
By Associated Press, Wire Service Content June 10, 2020, at 4:48 p.m

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

Stocks closed a choppy day on Wall Street with broad losses Wednesday, despite fresh assurances from the Federal Reserve that it would keep interest rates low through 2022 and would continue buying bonds to help markets function smoothly.

The S&P 500 fell 0.5%, extending losses from a day earlier. The benchmark index had briefly climbed 0.5% following the release of the central bank’s latest policy statement. Most sectors finished lower, but a surge in technology sector stocks helped push the Nasdaq above 10,000 for the first time, giving the index its third record high close in a row. Bond yields were broadly lower, reflecting caution among investors.

The Fed has cut its benchmark short-term rate to near zero as part of a historic effort to gird the stock market and U.S. economy from the coronavirus pandemic’s economic ravages. The central bank made clear Wednesday that it will keep providing support by buying bonds to maintain low borrowing rates. It also forecast no rate hike through 2022, which could make it easier for consumers and businesses to borrow and spend enough to sustain an economy depressed by business shutdowns and high unemployment.

The move to leave its key interest rate unchanged wasn’t a surprise to investors, but the fact that nearly all of the members of the central bank’s Federal Open Market Committee foresee no rate hike through 2022 was noteworthy, said Brian Nick, chief investment strategist at Nuveen.

“What you have on the FOMC is unanimity that rates ought to stay low and that their communication should continue to emphasize that they’re not going to raise interest rates, absent a material improvement in the economy,” he said.

The combination of low interest rates and low inflation has been a key driver for gains in big technology companies that can grow almost regardless of the economy.

“That’s been the magic formula for growth stocks,” Nick said.

The S&P 500 dropped 17.04 points to 3,190.14. The Dow Jones Industrial Average fell 282.31 points, or 1%, to 26,989.99. The Nasdaq composite gained 66.59 points, or 0.7%, to 10,020.35. Small company stocks bore the brunt of the selling. The Russell 2000 index lost 39.66 points, or 2.6%, to 1,467.39.

Wall Street has been generally rising since late March, at first on relief following emergency rescues by the Fed and Congress. More recently, investors have begun piling into companies that would benefit most from a reopening economy that’s growing again. The S&P 500, a benchmark for many index funds, is now within 6% of reclaiming the all-time high it reached in February.

Still, uncertainty remains over how quickly economies can recover from the pandemic, given that the numbers of infections and fatalities are still rising in many countries.

“What matters to the market is making sure the coronavirus doesn’t come back in any material way and making sure the Fed is continuing to support economic activity,” said Mike Zigmont, head of trading and research at Harvest Volatility Management.

A report on Friday showing that the U.S. job market surprisingly strengthened last month helped stoke optimism among investors that the economy can climb out of its current hole faster than forecast. Employers added 2.5 million workers to their payrolls, when economists were expecting them instead to slash another 8 million jobs.

But in remarks during a virtual news conference Wednesday, Fed Chair Jerome Powell said the May jobs data, while encouraging, was hardly enough to ensure that the job market or the economy is back on track.

“The labor market may have hit bottom in May,” Powell said. But, he added, “we’re not going to overreact to a single data point.”

Airlines were among the big decliners Wednesday after Delta Air Lines warned in a regulatory filing that it expects its revenue in the second quarter to be down 90% from a year earlier. Delta fell 7.4%, American Airlines dropped 8.2% and Alaska Air Group lost 10%.

Two of the nation’s biggest mall owners fell sharply after Simon Property Group backed out of its $3.6 billion takeover of rival Taubman Centers. The buyout deal was signed in February, just before the pandemic began to spread in the U.S. Simon Property slid 4%, while Taubman plunged 20.1%.

Shares in electric car and solar panel maker Tesla closed above $1,000 for the first time, climbing 9% to $1,025.05. The stock also closed at a new high on Monday. Tesla shares have more than doubled so far this year.

Bond yields fell. The yield on the 10-year Treasury yield slid to 0.72% from 0.82% late Tuesday. It tends to move with investors’ expectations of the economy and inflation, though it’s still well above the 0.64% level where it started last week.

Oil prices rose. Benchmark U.S. crude oil for July delivery rose 1.7% to settle at $39.60 a barrel. Brent crude oil for August delivery rose 1.3% to $41.73 a barrel.

European indexes closed broadly lower, while Asian markets ended mixed.

The pullback in global stocks came as the Organization for Economic Cooperation and Development said the coronavirus crisis has triggered the worst global recession in nearly a century and projected that the global economy will shrink by 6% this year in a best-case scenario, with only a modest pick-up next year.

The estimate, which is based on an analysis of the latest global economic data, suggests an even sharper decline of 7.6% if there is a second wave of coronavirus contagions this year.

 

[bigdog]

Stocks fell sharply Thursday on Wall Street as coronavirus cases in the U.S. increased again, deflating recent optimism for a quick economic recovery and raising more doubts about how long the market’s scorching comeback can last.

The Dow Jones Industrial Average sank more than 1,800 points and the S&P 500 dropped 5.9%, its worst day since mid-March, when stocks went through repeated harrowing falls as the virus lockdowns began.

Many market watchers have been saying that the comeback in the market since late March was overdone and did not reflect the dire state of an economy in its worst crisis in decades. The S&P 500 rallied 44.5% between late March and Monday, erasing most of its losses tied to the pandemic.

The selling comes as coronavirus cases rise in the U.S., with some of the increase likely tied to the reopening of businesses and the lifting of stay-at-home orders. Cases are climbing in nearly half the states, according to an Associated Press analysis, a worrying trend that could intensify as people return to work and venture out during the summer.

“Not surprisingly, a lack of preventative behavior has led to a resurgence in COVID-19 cases around the country, and the stock market is having another gut check,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.

Investor optimism for a speedy recovery was also dimmed by the Federal Reserve, which warned Wednesday that the road to recovery from the worst downturn in decades would be long and vowed to keep rates low for the foreseeable future.

Those factors, along with the recent run-up in stock prices, set the stage for the wave of selling Thursday.

The S&P 500 dropped 188.04 points to 3,002.10, its biggest decline since March 16. The Dow skidded 1,861.82 points, or 6.9%, to 25,128.17. The Nasdaq composite, which rose above 10,000 for the first time a day earlier, lost 527.62 points, or 5.3%, to 9,492.73.

Small company stocks continued to bear the brunt of the selling, a signal that investors are becoming more pessimistic about a broad recovery in the economy. The Russell 2000 index fell 111.17 points, or 7.6%, to 1,356.22. European and Asian markets also fell.

Nearly all of the companies in the S&P 500 closed lower. Technology, financial, industrial and health care stocks accounted for a big slice of the market’s broad slide. Energy stocks were the biggest losers as crude oil prices fell sharply on worries that a slumping economy would need less energy.

ASX 200 expected to extend its decline.
It looks set to be another bleak day of trade for the ASX 200 after Wall Street crashed lower overnight. According to the latest SPI futures, the benchmark index is expected to sink 185 points or 3.1% lower at the open. On Wall Street the Dow Jones dropped 6.9%, the S&P 500 fell 5.9%, and the Nasdaq sank 5.3%.

https://www.usnews.com/news/busines...-slide-as-rising-virus-cases-haunt-reopenings

Dow Sinks 1,800 as Virus Cases Rise, Deflating Optimism
The Dow Jones industrials lost more than 1,800 points, nearly 7%, as increases in coronavirus cases deflated optimism that the economy could recover quickly from its worst crisis in decades.
By Associated Press, Wire Service Content June 11, 2020, at 5:42 p.m.

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

Stocks fell sharply Thursday on Wall Street as coronavirus cases in the U.S. increased again, deflating recent optimism for a quick economic recovery and raising more doubts about how long the market’s scorching comeback can last.

The Dow Jones Industrial Average sank more than 1,800 points and the S&P 500 dropped 5.9%, its worst day since mid-March, when stocks went through repeated harrowing falls as the virus lockdowns began.

Many market watchers have been saying that the comeback in the market since late March was overdone and did not reflect the dire state of an economy in its worst crisis in decades. The S&P 500 rallied 44.5% between late March and Monday, erasing most of its losses tied to the pandemic.

The selling comes as coronavirus cases rise in the U.S., with some of the increase likely tied to the reopening of businesses and the lifting of stay-at-home orders. Cases are climbing in nearly half the states, according to an Associated Press analysis, a worrying trend that could intensify as people return to work and venture out during the summer.

“Not surprisingly, a lack of preventative behavior has led to a resurgence in COVID-19 cases around the country, and the stock market is having another gut check,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.

Investor optimism for a speedy recovery was also dimmed by the Federal Reserve, which warned Wednesday that the road to recovery from the worst downturn in decades would be long and vowed to keep rates low for the foreseeable future.

Those factors, along with the recent run-up in stock prices, set the stage for the wave of selling Thursday.

The S&P 500 dropped 188.04 points to 3,002.10, its biggest decline since March 16. The Dow skidded 1,861.82 points, or 6.9%, to 25,128.17. The Nasdaq composite, which rose above 10,000 for the first time a day earlier, lost 527.62 points, or 5.3%, to 9,492.73.

Small company stocks continued to bear the brunt of the selling, a signal that investors are becoming more pessimistic about a broad recovery in the economy. The Russell 2000 index fell 111.17 points, or 7.6%, to 1,356.22. European and Asian markets also fell.

Nearly all of the companies in the S&P 500 closed lower. Technology, financial, industrial and health care stocks accounted for a big slice of the market’s broad slide. Energy stocks were the biggest losers as crude oil prices fell sharply on worries that a slumping economy would need less energy. Bond yields also fell, a sign of increasing caution among investors, and the price of gold surged 1.1% as investors shifted money into the traditional safe-haven assets.

Emergency rescue efforts by the Fed and Congress helped arrest the market’s staggering 34% skid in February and March. Since then, the market had been riding a wave of investor optimism that the economy will bounce back by the end of the year, if not sooner, as businesses reopen and people go back to work. But confidence in that scenario is waning as infections and fatalities continue to climb in the U.S. and elsewhere.

Investors are still waiting for more data to see whether the spike in COVID-19 cases is a sign of a possible second wave of the infection, said Charlie Ripley, senior investment strategist for Allianz Investment Management.

“We think the recovery is largely underway, but there is still some considerable uncertainty on the path we have ahead,” Ripley said. “If we see some more follow-on of people coming back to work and consumer sentiment picking up, that will be a positive sign for a faster recovery."

The market's historic comeback in April and May was driven in part by a surge in individual investors eager to buy up stocks at lower prices despite a backdrop of historic job losses, forecasts of sinking corporate profits and a global recession. The trend led to a record surge in new accounts opened by individual investors at brokerages and a record volume of trades. This week's sell-off has likely cut into many of those investors' recent gains.

Anxious investors shifted more money into government bonds Thursday, sending yields broadly lower. The yield on the 10-year Treasury yield slid to 0.66% from 0.74% late Wednesday, a big move. Last Friday it briefly rose above 0.90%, and it started the year at 1.92%.

The Labor Department said Thursday that about 1.5 million people applied for U.S. unemployment benefits last week, another sign that many Americans are still losing their jobs even as the economy begins to gradually reopen. The latest figure marked the 10th straight weekly decline in applications for jobless aid since they peaked in mid-March when the coronavirus hit hard. Still, the pace of layoffs remains historically high.

Other jobs data have been more encouraging. A report issued last week showed that the U.S. job market surprisingly strengthened last month as employers added 2.5 million workers to their payrolls. Economists had been expecting them instead to slash another 8 million jobs.

That report helped stoke optimism among investors that the economy can climb out of its current hole faster than forecast. But the Fed estimated Wednesday that the economy will shrink 6.5% this year, in line with other forecasts, before expanding 5% in 2021. It also expects the unemployment rate at 9.3%, near the peak of the last recession, by the end of this year. The rate is now 13.3%.

 

[bigdog]

Wall Street managed to end a bumpy day broadly higher Friday but still finished with its worst week in nearly three months.

The S&P 500 rose 1.3% a day after dropping nearly 6% in its biggest rout since mid-March. It lost 4.8% for the week, snapping a three-week winning streak for the benchmark index. Small-company stocks and bond yields rose, meaning investors were a bit more willing to take on risk again a day after the sell-off.

The volatility this week interrupted what had been a dramatic rally for the market. After surging Monday, stocks sold off for three straight days as a rise in COVID-19 cases in the U.S. and a discouraging economic outlook from the Federal Reserve dashed investors' optimism that the economy will recover relatively quickly as states lift stay-at-home orders and businesses reopen.

“Yesterday was the market taking a needed breath and saying ’OK, this is probably going to take more time than we were expecting,” said Willie Delwiche, investment strategist at Baird. “Today, it’s ‘maybe we overreacted yesterday.’”

The comeback rally lost some of its early strength as the day went on. The S&P 500 gained 39.21 points to 3,041.31 after shedding more than half of its early gains.

The Dow Jones Industrial Average rose 477.37 points, or 1.9%, to 25,605.54. It had been up more than 800 points in the early going. It closed the week with a 5.6% loss.

Investors have been balancing optimism about the reopening of the economy against the possibility that the relaxing of restrictions will lead to a surge in new coronavirus infections and fatalities. Cases are climbing in nearly half the states, according to an Associated Press analysis, a worrying trend that could intensify as people return to work and venture out during the summer.

Despite the uncertainty, stocks have mounted a historic comeback the past couple of months, with the S&P 500 rallying 44.5% between late March and Monday, erasing most of its losses tied to the pandemic. It’s unclear if Thursday’s market sell-off reflected a fundamental reassessment of the economic outlook or a one-off drop as traders cashed in on the market’s recent gains.

https://www.usnews.com/news/busines...id-after-wall-street-rout-as-virus-cases-rise

US Stocks Bounce Higher, but Still End the Week With a Loss
Stocks closed another bumpy day with solid gains on Wall Street, but not enough to erase its worst weekly loss since late March.
By Associated Press, Wire Service Content June 12, 2020, at 5:37 p.m.

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

Wall Street managed to end a bumpy day broadly higher Friday but still finished with its worst week in nearly three months.

The S&P 500 rose 1.3% a day after dropping nearly 6% in its biggest rout since mid-March. It lost 4.8% for the week, snapping a three-week winning streak for the benchmark index. Small-company stocks and bond yields rose, meaning investors were a bit more willing to take on risk again a day after the sell-off.

The volatility this week interrupted what had been a dramatic rally for the market. After surging Monday, stocks sold off for three straight days as a rise in COVID-19 cases in the U.S. and a discouraging economic outlook from the Federal Reserve dashed investors' optimism that the economy will recover relatively quickly as states lift stay-at-home orders and businesses reopen.

“Yesterday was the market taking a needed breath and saying ’OK, this is probably going to take more time than we were expecting,” said Willie Delwiche, investment strategist at Baird. “Today, it’s ‘maybe we overreacted yesterday.’”

The comeback rally lost some of its early strength as the day went on. The S&P 500 gained 39.21 points to 3,041.31 after shedding more than half of its early gains.

The Dow Jones Industrial Average rose 477.37 points, or 1.9%, to 25,605.54. It had been up more than 800 points in the early going. It closed the week with a 5.6% loss.

Investors have been balancing optimism about the reopening of the economy against the possibility that the relaxing of restrictions will lead to a surge in new coronavirus infections and fatalities. Cases are climbing in nearly half the states, according to an Associated Press analysis, a worrying trend that could intensify as people return to work and venture out during the summer.

Despite the uncertainty, stocks have mounted a historic comeback the past couple of months, with the S&P 500 rallying 44.5% between late March and Monday, erasing most of its losses tied to the pandemic. It’s unclear if Thursday’s market sell-off reflected a fundamental reassessment of the economic outlook or a one-off drop as traders cashed in on the market’s recent gains.

“We will continue to see volatility across the markets, as there is plenty of uncertainty on what the reopening of the U.S. economy looks like,” said Julie Fox, northeast private wealth market head at UBS Financial Services.

In a press conference earlier this week, Fed Chair Jerome Powell put a damper on hopes for a swift economic rebound from the coronravirus pandemic, noting that surprisingly strong May hiring data, while encouraging, was hardly enough to ensure that the job market or the economy is back on track.

“This is a battle of optimism and realism that’s been playing out over the last three months," said Adam Taback, chief investment officer for Wells Fargo Private Wealth Management. "Optimism was winning over realism with a look toward 2021. What Jerome Powell exposed is 2021 is not enough time. It’s likely 2022 or even 2023 before we will see ourselves get back to normal.”

Taback said the job market remains the most important gauge of the economy's recovery, which is why he's keeping an eye on data for signs that people who were laid off or furloughed are getting rehired as businesses reopen.

“The main thing to watch is how fast those jobs come back, because they’ll be directly tied to how much consumers are spending,” he said.

Technology, financial and industrial stocks were among the big gainers Friday. Utilities stocks posted a small loss. Companies that were among the biggest losers Thursday were big gainers Friday, including airlines and cruise lines.

The Nasdaq, which climbed above 10,000 points for the first time on Wednesday, gained 96.08 points, or 1%, to 9,588.81. The Russell 2000 index of smaller companies fared better than the rest of the market, climbing 31.46 points, or 2.3%, to 1,387.68. European markets closed mostly higher. Asian markets ended broadly lower.

Bond yields rose. The yield on the 10-year Treasury yield increased to 0.69% from 0.65% late Thursday.

Oil prices ended mixed. Benchmark U.S. crude oil for July delivery fell 8 cents to settle at $36.26 a barrel. Brent crude oil for August delivery rose 18 cents to close at $38.73 a barrel.

325

 

[bigdog]

ASX 200 to rebound.
The ASX 200 looks set to rebound on Monday after a solid finish to the week in the United States. According to the latest SPI futures, the benchmark index is expected to open the week 24 points or 0.4% higher this morning. On Wall Street the Dow Jones jumped 1.9%, the S&P 500 stormed 1.3% higher, and the Nasdaq index rose 1%.

 

[finicky]

So I usually assume that our guide as to what the ASX will do today is not what the overnight actual results have been for the S&P500 or DJIA, or even what the ASX futures are indicating will be the open here. What tells us about how the day will go seems to be the what the US index futures are showing during our day of trading. And today is a case in point - well down following a strong prior trading day in the U.S. and a pre-trading positive ASX futures. Unless you're a day trader, who cares what the ASX open might be?

 

[Skate]

Unless you're a day trader, who cares what the ASX open might be?

@finicky, I care & I'm not a "day trader". I for one like to make sense of the news.

I tend to make up stories so I understand the direction of the market sentiment
I tend to make up a story with the information at hand. Let me summarise the story so far today. The opening of the US market is not looking pretty "at this stage". Our markets could be in for a disaster tomorrow.

New information
We have to take into consideration that there is going to be so much more new information out before our markets open tomorrow. We are "part" of the world trading game, admittedly a small part as we are all interconnected. Let me concentrate on the initial driver of our markets, the "U.S". The story so far.

World Markets (currently 6:07pm)
@finicky - It's not looking good, take notice by looking at the % level of Change so far - "WOW" these percentages are worrying (indicating the direction of new markets "when they open")
Nikkei 225 Japan 21,530.95 -3.47% (closed)
Hang Seng Hong Kong 23,769.95 -2.19% (currently trading)
FTSE 100 England 5,972.46 -2.17% (currently trading)
DAX Germany 11,628.45 -2.68% (currently trading)

US stock futures & Asian markets plunged today
We all know our market started well but as more information was gathered the market sentiment shifted. This now signals not only our markets but global markets are headed for another volatile week as we all grapple with the ongoing effects of the coronavirus pandemic. Oil also fell, building on steep losses last week.

Dow (INDU) futures plunged more than 800 points or 3.3% currently
It's handy for me to have a window into our future & the (INDU) futures provides this. Knowing this piece of information sets up a condition that at this stage the "DOW" looks to extending the losses ahead of Monday's open.

S&P 500 (SPX) futures dropped 2.9%, and Nasdaq (COMP) futures were down 2.3%.
For weeks, "Wall Street" appeared disconnected from the rest of the world. Last week, markets caught up with reality. On Thursday, all three indexes posted their biggest sell-offs since March. The indexes recovered somewhat Friday, but not enough to recoup the losses they recorded last week. The "United States" begins to reopen following coronavirus lockdowns, there is the potential for a second wave of the virus, which could have devastating effects for the economy. A second wave could undermine the extreme optimism about the economy that had catapulted US stocks toward record highs.

I like to know what's going on
So, let me say once again, I care.

Skate

 

[Chronos-Plutus]

We got a strengthening USD, with gold down ~1.45%, and Dow Futures tanking.

Markets are beginning to panic.

 

[bigdog]

Wall Street rallied back from a sharp, early slump on Monday to notch modest gains after the Federal Reserve unveiled its latest push to prop up the economy.

The S&P 500 climbed 0.8% in the latest day of big swings for global markets, as a remarkable, weekslong rally shows some cracks. Worries are rising that additional waves of coronavirus infections could derail the swift economic recovery that Wall Street just a week ago had seemed so sure was on the way.

When trading began in New York, those worries seemed set to drag the U.S. stock market to a loss following sharp declines in Asia and more modest ones in Europe. The S&P 500 quickly fell 2.5%, with stocks that most desperately need the economy to reopen hit particularly hard.

But some investors took advantage of the nervousness and bought stocks, which helped trim the S&P 500's losses as the day progressed, before it popped decisively higher after the Fed announced in the afternoon that it will buy individual corporate bonds. The purchases will be part of its previously announced program to keep lending markets running smoothly, which allows big employers to get access to cash.

They’re also the latest reminder that the Fed is doing everything it can to help support markets, analysts said. Central banks have repeatedly come to the economy’s rescue over the years, and it was huge, unprecedented moves by the Fed earlier this year that helped put a halt to the S&P 500's nearly 34% sell-off on worries about the recession coming out of the coronavirus pandemic.

The S&P 500 rose 25.28 points to finish at 3,066.59, which is 9.4% below its record set in February.

The Dow Jones Industrial Average gained 157.62 points, or 0.6%, to finish at 25,763.16 after earlier being down as many as 762 points. The Nasdaq composite added 137.21, or 1.4%, to 9,726.02.

“Volatility is here to stay, at least for a little while,” said Jason Pride, chief investment officer of private wealth at Glenmede. “Nobody in the financial industry has a good way to forecast this.”

ASX 200 expected to jump.
The ASX 200 tumbled lower yesterday afternoon after U.S. futures started to point sharply lower. This morning the index looks set to rebound strongly after U.S. markets avoided a selloff and pushed higher. According to the latest SPI futures, the benchmark index is expected to open the day 134 points or 2.3% higher. On Wall Street the Dow Jones rose 0.6%, the S&P 500 pushed 0.8% higher, and the Nasdaq index jumped 1.4%.

https://www.usnews.com/news/busines...-fall-on-fears-virus-outbreaks-are-rebounding

Stocks Erase an Early Loss After Fed Widens Bond Purchases
The stock market shook off a weak start and ended higher after the Federal Reserve announced its latest measure to support markets.
By Associated Press, Wire Service Content June 15, 2020, at 5:20 p.m.

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

NEW YORK (AP) — Wall Street rallied back from a sharp, early slump on Monday to notch modest gains after the Federal Reserve unveiled its latest push to prop up the economy.

The S&P 500 climbed 0.8% in the latest day of big swings for global markets, as a remarkable, weekslong rally shows some cracks. Worries are rising that additional waves of coronavirus infections could derail the swift economic recovery that Wall Street just a week ago had seemed so sure was on the way.

When trading began in New York, those worries seemed set to drag the U.S. stock market to a loss following sharp declines in Asia and more modest ones in Europe. The S&P 500 quickly fell 2.5%, with stocks that most desperately need the economy to reopen hit particularly hard.

But some investors took advantage of the nervousness and bought stocks, which helped trim the S&P 500's losses as the day progressed, before it popped decisively higher after the Fed announced in the afternoon that it will buy individual corporate bonds. The purchases will be part of its previously announced program to keep lending markets running smoothly, which allows big employers to get access to cash.

They’re also the latest reminder that the Fed is doing everything it can to help support markets, analysts said. Central banks have repeatedly come to the economy’s rescue over the years, and it was huge, unprecedented moves by the Fed earlier this year that helped put a halt to the S&P 500's nearly 34% sell-off on worries about the recession coming out of the coronavirus pandemic.

The S&P 500 rose 25.28 points to finish at 3,066.59, which is 9.4% below its record set in February.

The Dow Jones Industrial Average gained 157.62 points, or 0.6%, to finish at 25,763.16 after earlier being down as many as 762 points. The Nasdaq composite added 137.21, or 1.4%, to 9,726.02.

“Volatility is here to stay, at least for a little while,” said Jason Pride, chief investment officer of private wealth at Glenmede. “Nobody in the financial industry has a good way to forecast this.”

Case numbers are still growing in states across the country and nations around the world. Governments are relaxing lockdowns in hopes of nursing their devastated economies back to life, but without a vaccine, the reopenings could bring on further waves of COVID-19 deaths.

China is reporting a new outbreak in Beijing, one that appears to be the biggest since it largely stopped its spread at home more than two months ago. In New York, the governor is upset that big groups of people are packing together outside bars and restaurants without face masks, and he threatened to reinstate closings in areas where local governments fail to enforce the rules.

That’s the biggest worry for markets: If infections swamp the world, governments could bring back the orders for people to stay at home and for businesses to shut down that sent the economy into its worst recession in decades. Even if that doesn’t happen, rolling waves of outbreaks could frighten businesses and consumers enough to keep them from spending and investing, which would itself hinder the economy.

It was just a week ago that investors seemed ebullient about expectations for a coming economic recovery. The hopes got a shot of adrenaline earlier this month when a report showed that U.S. employers added jobs to their payrolls in May, a big surprise when economists were expecting to see millions more jobs lost. That raised expectations that the economy could climb out of its hole nearly as quickly as it plunged into it.

That optimism sent the stock market on a second leg of its rally, which began in March after the Federal Reserve and Congress promised unprecedented amounts of aid to support the economy. Besides its corporate bond buying program, the Fed has also cut interest rates back to nearly zero and expects to keep them there through 2022. Its chair, Jerome Powell, may offer more details about the Fed's outlook in scheduled testimony before Congress this week.

All through its torrid rally, though, many professional investors were warning that the market's gains may have been overdone considering how long and uncertain the economic recovery looked to be. The S&P 500 climbed back to within 4.5% of its record high last week.

Some of the rally was likely driven by a big influx of individual investors into the market. Brokerages reported big increases in client numbers and trading earlier this year, and stocks popular with individual investors have returned 61% since the market hit a bottom on March 23, according to Goldman Sachs. That's much more than the 45% rise for stocks popular with hedge funds and traditional mutual funds.

The yield on the 10-year Treasury note rose to 0.71% from 0.69% late Friday. It tends to rise and fall with investors’ expectations for the economy and inflation, and it had been above 0.90% earlier this month.

In Asia, South Korea’s Kospi dropped 4.8%, Japan’s Nikkei 225 lost 3.5% and the Hang Seng in Hong Kong fell 2.2%. In Europe, France’s CAC 40 slipped 0.5%, Germany’s DAX lost 0.3% and the FTSE 100 in London dipped 0.7%

 

[bigdog]

Stocks rose again Tuesday, part of a strong and worldwide rally for markets, after a big rebound in buying at U.S. stores and online raised hopes that the economy can escape its recession relatively quickly.

The S&P 500 climbed 1.9% for its third straight gain, bringing it back within 8% of its record set in February. Gains have built in recent weeks as reports bolster investor expectations that the worst of the downturn may have already passed.

Continuing, immense aid from the Federal Reserve is also supporting markets, and its chair said Tuesday that the central bank will continue to use all its tools to cushion the blow of the worst recession in decades. But trading remains very skittish across markets as worsening coronavirus trends in several global hotspots raise the possibility that all the improvements could unravel.

The S&P 500 shot to an early 2.8% gain, lost nearly all of it at one point and then rallied back. By the end of Tuesday, the index was up 58.15 points at 3,124.74.

The Dow Jones Industrial Average rose 526.82, or 2%, to 26,289.98, and the Nasdaq composite climbed 169.84, or 1.7%, to 9,895.87.

“The markets have been looking forward to the economy reopening, and that’s a large part of the story for the next few months,” said Bruce Bittles, chief investment strategist at Baird.

“My feeling is that while reopenings and things get better, it won’t be without some backsteps, and I think it’ll be a rocky few months more for the markets.”

Retail sales jumped 17.7% from April to May, more than double economists’ expectations, to retrace some of their record-setting plunges in March and April as businesses reopened across the country. It follows earlier reports that the U.S. job market unexpectedly strengthened last month.

ASX 200 poised to extend its gains.
It looks set to be another good day of trade for the ASX 200. According to the latest SPI futures, the benchmark index is expected to open the day 26 points or 0.45% higher this morning. This follows a positive night of trade on Wall Street which saw the Dow Jones rise 2.05%, the S&P 500 jump 1.9% higher, and the Nasdaq index stormed 1.75% higher. Strong U.S. retail sales data helped drive Wall Street higher.

https://www.usnews.com/news/busines...follow-wall-st-higher-after-fed-ups-bond-buys

Stocks Rally Worldwide on Hopes for Coming Economic Recovery
Stocks rose on Wall Street, notching their third gain in a row, after U.S. retail sales rebounded last month by much more than economists were expecting.
By Associated Press, Wire Service Content June 16, 2020, at 5:18 p.m.

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

NEW YORK (AP) — Stocks rose again Tuesday, part of a strong and worldwide rally for markets, after a big rebound in buying at U.S. stores and online raised hopes that the economy can escape its recession relatively quickly.

The S&P 500 climbed 1.9% for its third straight gain, bringing it back within 8% of its record set in February. Gains have built in recent weeks as reports bolster investor expectations that the worst of the downturn may have already passed.

Continuing, immense aid from the Federal Reserve is also supporting markets, and its chair said Tuesday that the central bank will continue to use all its tools to cushion the blow of the worst recession in decades. But trading remains very skittish across markets as worsening coronavirus trends in several global hotspots raise the possibility that all the improvements could unravel.

The S&P 500 shot to an early 2.8% gain, lost nearly all of it at one point and then rallied back. By the end of Tuesday, the index was up 58.15 points at 3,124.74.

The Dow Jones Industrial Average rose 526.82, or 2%, to 26,289.98, and the Nasdaq composite climbed 169.84, or 1.7%, to 9,895.87.

“The markets have been looking forward to the economy reopening, and that’s a large part of the story for the next few months,” said Bruce Bittles, chief investment strategist at Baird.

“My feeling is that while reopenings and things get better, it won’t be without some backsteps, and I think it’ll be a rocky few months more for the markets.”

Retail sales jumped 17.7% from April to May, more than double economists’ expectations, to retrace some of their record-setting plunges in March and April as businesses reopened across the country. It follows earlier reports that the U.S. job market unexpectedly strengthened last month.

Economists at IHS Markit said this could be the shortest recession on record for the United States, perhaps just a couple months.

Among other encouraging signs spurring markets worldwide: Researchers in England said they have the first evidence that a drug can improve survival from COVID-19, one that is already widely available and cheap.

Underpinning all of the market’s strength is continued aid coming from central banks, which have repeatedly come to the economy’s rescue. The Federal Reserve helped turn markets around on Monday after it said it will buy individual corporate bonds as part of a previously announced program to support lending markets.

“The Fed has flooded the economy with liquidity,” said Randy Frederick, vice president of trading and derivatives at Charles Schwab.

And with lots of cash sitting uninvested in money market accounts, the market has more potential fuel for its next leg higher, he said. “People are just waiting for any good news to jump in and drive that higher.”

Still, caution continues to run through markets. A record number of fund managers in Bank of America’s monthly survey say the stock market is overvalued following its nearly 40% surge since late March.

The rally has also been showing some cracks recently as investors worry that a possible resurgence of infections could push governments to reinstate lockdown measures to slow the spread of the virus.

Analysts on Tuesday cited discouraging trends in Florida, Texas and China. And even if the stay-at-home orders don’t come back, worried consumers and businesses could pull back on their spending.

Skepticism has been high about the stock market’s run since it began climbing since hitting a bottom in late March, down 34% from its record. The huge backstops from the Fed and Capitol Hill helped halt the declines.

More recently, investors have been pushing up shares of companies that would benefit from a reopening economy on expectations that activity can rebound as governments relax shutdown restrictions put in place to slow the spread of the virus.

Such stocks were again leading the market on Tuesday. Smaller stocks were among the market’s biggest gainers, which often happens when investors are getting more optimistic about the economy. The Russell 2000 index of small-cap stocks rose 2.3%.

Nordstrom jumped 12.9% for one of the biggest gains in the S&P 500, leading a group of retailers that stand to benefit if shoppers return to stores.

The yield on the 10-year Treasury rose to 0.74% from 0.70% late Monday. It tends to move with investors’ expectations for the economy and inflation.

In Asia, Japan’s Nikkei 225 jumped 4.9%, South Korea’s Kospi surged 5.3% and the Hang Seng in Hong Kong rose 2.4%. In Europe, Germany’s DAX returned 3.4%, France’s CAC 40 rose 2.8% and the FTSE 100 in London added 2.9%.

Benchmark U.S. crude oil for July delivery rose $1.26 to settle at $38.38 a barrel Monday. Brent crude oil for August delivery rose $1.24 to $40.96 a barrel.

 

[Garpal Gumnut]

Stocks rose again Tuesday, part of a strong and worldwide rally for markets, after a big rebound in buying at U.S. stores and online raised hopes that the economy can escape its recession relatively quickly....................................................................................

Thanks @bigdog
A good summary with which to start the day.
gg

 

[bigdog]

Stocks mostly fell in another day of wobbly trading on Wall Street Wednesday, as markets eased off the accelerator following their big rally.

The S&P 500 dipped 0.4% to break a three-day winning streak, after bouncing between small gains and losses for much of the day. Stocks in Asia and Europe made modest gains, while Treasury yields edged lower.

Markets have been trending upward this week amid hopes that the worst of the recession may have already passed, and a worldwide rally on Tuesday carried the S&P 500 back to within 8% of its record. But rising levels of coronavirus infections in several hotspots around the world is also raising concerns that all the improvements could get upended.

The S&P 500 fell 11.25 points to 3,113.49, with roughly seven out of every 10 stocks in the index down. The Dow Jones Industrial Average lost 170.37, or 0.6%, to 26,119.61. The Nasdaq composite was an outlier and rose 14.66, or 0.1%, to 9,910.53.

Many professional investors have been warning that the S&P 500’s big rally of nearly 40% since late March has been overdone and that volatility is likely the market’s only certainty in upcoming months.

The market began its turnaround following a nearly 34% sell-off in February and March after the Federal Reserve promised massive amounts of aid for the economy. The central bank’s chair told Congress Wednesday that it’s willing to keep interest rates at nearly zero and maintain its emergency lending programs.

But even though recent reports have also shown improvements in U.S. retail sales and employment as businesses reopen, the road back to a full recovery from the coronavirus pandemic will be long and is full of potential setbacks. That stands in sharp contrast to the market’s lightning surge over the last three months.

ASX 200 expected to drop lower.
The ASX 200 looks set to end its winning streak on Thursday. According to the latest SPI futures, the benchmark index is poised to open the day 32 points or 0.55% lower this morning. This follows a disappointing night of trade on Wall Street which saw the Dow Jones fall 0.65%, the S&P 500 drop 0.35%, and the Nasdaq index edge 0.15% higher.

https://www.usnews.com/news/busines...wer-after-wall-street-gains-on-recovery-hopes

Wall Street Dips as Global Rally Eases off the Accelerator
Stocks mostly fell in another day of wobbly trading on Wall Street Wednesday, as markets eased off the accelerator following their big rally.
By Associated Press, Wire Service Content June 17, 2020, at 4:41 p.m.

By STAN CHOE and ALEX VEIGA, AP Business Writers

NEW YORK (AP) — Stocks mostly fell in another day of wobbly trading on Wall Street Wednesday, as markets eased off the accelerator following their big rally.

The S&P 500 dipped 0.4% to break a three-day winning streak, after bouncing between small gains and losses for much of the day. Stocks in Asia and Europe made modest gains, while Treasury yields edged lower.

Markets have been trending upward this week amid hopes that the worst of the recession may have already passed, and a worldwide rally on Tuesday carried the S&P 500 back to within 8% of its record. But rising levels of coronavirus infections in several hotspots around the world is also raising concerns that all the improvements could get upended.

The S&P 500 fell 11.25 points to 3,113.49, with roughly seven out of every 10 stocks in the index down. The Dow Jones Industrial Average lost 170.37, or 0.6%, to 26,119.61. The Nasdaq composite was an outlier and rose 14.66, or 0.1%, to 9,910.53.

Many professional investors have been warning that the S&P 500’s big rally of nearly 40% since late March has been overdone and that volatility is likely the market’s only certainty in upcoming months.

The market began its turnaround following a nearly 34% sell-off in February and March after the Federal Reserve promised massive amounts of aid for the economy. The central bank’s chair told Congress Wednesday that it’s willing to keep interest rates at nearly zero and maintain its emergency lending programs.

But even though recent reports have also shown improvements in U.S. retail sales and employment as businesses reopen, the road back to a full recovery from the coronavirus pandemic will be long and is full of potential setbacks. That stands in sharp contrast to the market’s lightning surge over the last three months.

Consider Norwegian Cruise Line Holdings, whose stock has often led the market — both up and down — as expectations swing about the reopening economy. It had six straight days this month where it rose or fell more than 10%.

It said late Tuesday that it’s cancelling most of its voyages through September. Its shares fell 8.4% for one of the largest losses in the S&P 500.

The chief risk for the market lies in rising infection levels in several hotspots around the world, including Florida, Texas and China. Even if authorities don’t reinstate widespread lockdowns, the worry is that businesses and consumers could get frightened by new waves of infections and pull back on their spending.

Such worries rocked the market last week, sending the S&P 500 down nearly 6% one day, and they’ve continued to hang in the background this week.

“Any indication that there is an increase in a handful of states that have led the charge in reopening does kind of douse the flames a bit for a rally,” said Nela Richardson, investment strategist at Edward Jones. “We saw that last week and we may be seeing that again today, though definitely not the same dramatic swing we saw last week.”

While cruise lines had some of the sharpest losses in the S&P 500, other companies whose profits are closely tied to the strength of the economy were also weak.

Energy companies in the S&P 500 fell 3.3% for the largest loss among the 11 sectors that make up the index. Banks were also laggards, with JPMorgan Chase down 2.5% and Bank of America down 3.1%.

Stocks of smaller companies were weak, which is typical when investors are apprehensive about the economy. The Russell 2000 index of small-cap stocks fell 1.8%.

On the winning side were some home builders after a report showed that construction rebounded following months of sharp declines due to shutdowns caused by the pandemic. D.R. Horton rose 0.9%.

The growth in housing activity, though, was not as strong as economists expected and another sign of the long road to full recovery.

“As a signal for the overall economy, what housing is telling us is despite very low rates it’s going to be a slow rebound to normal,” Richardson said.

Big technology companies made modest moves higher, including a 0.3% rise for Microsoft. Because these are the biggest companies in the S&P 500, their movements have bigger sway on the index and helped to limit the losses.

“This to me is one of the quieter days we’ve had in terms of volatility, so it’s been a little bit refreshing,” said David Chalupnik, head of active domestic portfolio managers for Nuveen.

The yield on the 10-year Treasury fell to 0.72% from 0.75% late Tuesday. It tends to move with investors’ expectations for the economy and inflation.

In Europe, Germany’s DAX returned 0.5%, and France’s CAC 40 rose 0.9%. The FTSE 100 in London added 0.2%.

In Asia, South Korea’s Kospi ticked up 0.1%, and the Hang Seng in Hong Kong rose 0.6%. Japan’s Nikkei 225 fell 0.6% after the government reported the sharpest decline in exports since the 2008 global crisis.

A barrel of U.S. crude oil for delivery in July slipped 42 cents to settle at $37.96. Brent crude, the international standard, slipped 25 cents to $40.71 per barrel

 

[bigdog]

Wall Street held at a near standstill on Thursday, with indexes split as caution about rising coronavirus infections in hotspots around the world washed over hopes for a coming economic recovery.

The S&P 500 edged up by 0.1% after flip-flopping repeatedly between small gains and losses through the day. Earlier, stocks slipped in European and Asian markets, while Treasury yields faded in another sign of increased caution.

Slightly more stocks fell in the S&P 500 than rose, but the index ended up adding 1.85 points to close at 3,115.34. The Dow Jones Industrial Average slipped 39.51, or 0.2%, to 26.080.10, and the Nasdaq composite rose 32.52, or 0.3%, to 9,943.05.

Markets worldwide have been showing more apprehension following a tremendous rally for U.S. stocks that began in late March and reached nearly 45% at one point. Surprisingly strong reports on U.S. retail sales and employment have built hopes recently that the economy can pull out of its recession relatively quickly as governments ease up on lockdown orders.

But discouraging numbers on the coronavirus in various U.S. states and elsewhere in the world have dented the optimism. Even if authorities don’t reimpose widespread lockdowns to slow the spread of the virus, the fear is that consumers and businesses could get frightened and pull back on spending. That would damage the fragile improvements that the economy seems to be developing.

“The question and the challenge for those of us who are watching the virus is what will it do to corporate earnings, and will localized shutdowns make the economic recovery even slower than it already is?” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. “We’ve had a good snap back, but it still leaves us short of where we were before.”

A report on Thursday showed that the number of U.S. workers filling for unemployment benefits eased for the 11th straight week, down to 1.5 million from nearly 1.6 million. Economists, though, had been expecting a larger decline.

ASX 200 expected to edge lower.
The ASX 200 looks set to end the week on a subdued note on Friday. According to the latest SPI futures, the benchmark index is expected to open the day 4 points or 0.1% lower. This follows a mixed night of trade on Wall Street which has seen the Dow Jones fall 0.15%, but the S&P 500 rise 0.05% and the Nasdaq index climb 0.35% higher. This was the latter’s fifth straight gain.

https://apnews.com/9f088d98641ef461399b101479ce4745

Wall Street holds in neutral after wobbly day; yields fall
By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGAan hour ago

NEW YORK (AP) — Wall Street held at a near standstill on Thursday, with indexes split as caution about rising coronavirus infections in hotspots around the world washed over hopes for a coming economic recovery.

The S&P 500 edged up by 0.1% after flip-flopping repeatedly between small gains and losses through the day. Earlier, stocks slipped in European and Asian markets, while Treasury yields faded in another sign of increased caution.

Slightly more stocks fell in the S&P 500 than rose, but the index ended up adding 1.85 points to close at 3,115.34. The Dow Jones Industrial Average slipped 39.51, or 0.2%, to 26.080.10, and the Nasdaq composite rose 32.52, or 0.3%, to 9,943.05.

Markets worldwide have been showing more apprehension following a tremendous rally for U.S. stocks that began in late March and reached nearly 45% at one point. Surprisingly strong reports on U.S. retail sales and employment have built hopes recently that the economy can pull out of its recession relatively quickly as governments ease up on lockdown orders.

But discouraging numbers on the coronavirus in various U.S. states and elsewhere in the world have dented the optimism. Even if authorities don’t reimpose widespread lockdowns to slow the spread of the virus, the fear is that consumers and businesses could get frightened and pull back on spending. That would damage the fragile improvements that the economy seems to be developing.

“The question and the challenge for those of us who are watching the virus is what will it do to corporate earnings, and will localized shutdowns make the economic recovery even slower than it already is?” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. “We’ve had a good snap back, but it still leaves us short of where we were before.”

A report on Thursday showed that the number of U.S. workers filling for unemployment benefits eased for the 11th straight week, down to 1.5 million from nearly 1.6 million. Economists, though, had been expecting a larger decline.

The number of workers who continue to get unemployment benefits also fell slightly. That’s an indication that some employers have begun hiring workers again. But there, too, the improvement wasn’t as healthy as economists had forecast.

“It seemed like the worst was kind of behind us,” said Keith Buchanan, senior portfolio manager at Globalt. “At the same time, in the background, is this pathogen that doesn’t read anyone’s Twitter feed, doesn’t read economic data and doesn’t know optimism or pessimism.”

“The volatility is the market just trying to digest it all,” he said.

One source of support seems to remain constant for markets, though: tremendous aid from central banks. The Bank of England on Thursday increased the size of its bond-buying program to keep interest rates low.

A day earlier, the chair of the Federal Reserve said it will continue to keep interest rates pinned at nearly zero, as well as purchase bonds in far-ranging corners of the market to support the economy. Huge, unprecedented programs by the Fed and Congress in late March were what helped the S&P 500 halt its plunge of nearly 34% when recession worries were at their height.

The S&P 500 has since shaved that loss to 8%, with recent leadership often coming from companies that would benefit most from a reopening economy.

Such stocks bounced up and down with the overall market Thursday. Cruise operator Carnival fell to an early loss of 6.8% after it reported a net loss of $4.4 billion for its latest quarter. But it later recovered and briefly turned positive before finishing the day 1.4% lower.

Stocks of smaller companies have also tracked with investors’ expectations for the economy, and they likewise swung up and down Thursday. The Russell 2000 index of small-cap stocks ended the day virtually unchanged, up just 0.54 points to 1,427.08, after earlier bouncing between a gain of 0.9% and a loss of 1%.

In Europe, Germany’s DAX lost 0.8%, and France’s CAC 40 fell 0.7%. The FTSE 100 in London dropped 0.5%.

In Asia, Japan’s Nikkei 225 slipped 0.4%, South Korea’s Kospi lost 0.4% and the Hang Seng in Hong Kong dipped 0.1%.

The yield on the 10-year Treasury slipped to 0.69% from 0.73% late Wednesday. It tends to move with investors’ expectations for the economy and inflation.

A barrel of U.S. oil for delivery in July rose 2.3% to settle at $38.84. Brent crude, the international standard, rose 2% to settle at $41.51 per barrel.

 

[bigdog]

Wall Street careened through all the forces that have pushed and pulled it through the week, at first rising on Friday amid hope for the economy and then falling on worries about worsening coronavirus levels in some states, all before ending with modest losses.

The S&P 500 dropped 0.6%, a relatively small move to cap its fourth weekly gain in the last five. But the market swung between a gain of 1.3% and a decline of 1%, another example of how uncertainty is the dominant force over Wall Street as investors weigh budding improvements in the economy against worsening infection levels in the South and West.

The Dow Jones Industrial Average dropped 208.64 points, or 0.8%, to 25,871.46 after earlier swinging from a gain of 371 points to a loss of 320 points. The Nasdaq composite inched up by 3.07 points, or less than 0.1%, to 9,946.12. The S&P 500 fell 17.60 points to 3,097.74.

Also exacerbating volatility was Friday’s simultaneous expiration of contracts for stock options and futures, an occasional occurrence that can drive bouts of buying and selling and is known as “quadruple witching day.”

Early in the day, U.S. stocks appeared set to follow European and Asian markets higher and follow through on Wall Street’s momentum from earlier in the week.

Stocks had rebounded from last week’s 4.8% drop, the worst in nearly three months, in large part because of a report showing U.S. shoppers spent much more last month at stores and online retailers than economists expected. That followed up on encouraging data about the U.S. jobs market and bolstered hopes that the economy can pull out of its recession relatively quickly.

“You’re seeing big moves off of very weak numbers,” said Quincy Krosby, chief market strategist at Prudential Financial. “What’s happening is the data are getting less bad.”

Economists at Bank of America now expect the U.S. economy to shrink 5.7% this year, a severe contraction but not as bad as their earlier forecast for an 8.1% plunge.

https://www.usnews.com/news/busines...rly-gains-but-still-on-track-for-winning-week

Wall Street Dips as Virus Fears Drown Out Economy Hopes
Wall Street ended a wobbly day lower Friday after worries about rising coronavirus infections in several states undercut an early rally.
By Associated Press, Wire Service Content June 19, 2020, at 5:19 p.m.

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

NEW YORK (AP) — Wall Street careened through all the forces that have pushed and pulled it through the week, at first rising on Friday amid hope for the economy and then falling on worries about worsening coronavirus levels in some states, all before ending with modest losses.

The S&P 500 dropped 0.6%, a relatively small move to cap its fourth weekly gain in the last five. But the market swung between a gain of 1.3% and a decline of 1%, another example of how uncertainty is the dominant force over Wall Street as investors weigh budding improvements in the economy against worsening infection levels in the South and West.

The Dow Jones Industrial Average dropped 208.64 points, or 0.8%, to 25,871.46 after earlier swinging from a gain of 371 points to a loss of 320 points. The Nasdaq composite inched up by 3.07 points, or less than 0.1%, to 9,946.12. The S&P 500 fell 17.60 points to 3,097.74.

Also exacerbating volatility was Friday’s simultaneous expiration of contracts for stock options and futures, an occasional occurrence that can drive bouts of buying and selling and is known as “quadruple witching day.”

Early in the day, U.S. stocks appeared set to follow European and Asian markets higher and follow through on Wall Street’s momentum from earlier in the week.

Stocks had rebounded from last week’s 4.8% drop, the worst in nearly three months, in large part because of a report showing U.S. shoppers spent much more last month at stores and online retailers than economists expected. That followed up on encouraging data about the U.S. jobs market and bolstered hopes that the economy can pull out of its recession relatively quickly.

“You’re seeing big moves off of very weak numbers,” said Quincy Krosby, chief market strategist at Prudential Financial. “What’s happening is the data are getting less bad.”

Economists at Bank of America now expect the U.S. economy to shrink 5.7% this year, a severe contraction but not as bad as their earlier forecast for an 8.1% plunge.

“Economic data continue to point to a faster and stronger initial recovery,” they wrote in a BofA Global Research report. Some of that is due to economic activity being pulled forward from what they had expected to occur next year, ahead of a long road to full recovery.

The Federal Reserve also reminded markets this week how much it’s doing to prop up the economy.

The central bank said early in the week that it will buy individual corporate bonds as part of its previously announced plan to support lending markets for big employers. Later in the week, the Fed’s chair said it plans to continue to keep interest rates pinned at nearly zero to help cushion against the recession.

It was huge efforts by the Fed, along with spending by Congress, that helped the stock market turn around in March from its nearly 34% plunge.

But markets took a sharp turn lower Friday afternoon after Apple said it will temporarily close 11 stores in Arizona, Florida and the Carolinas.

The worst-case scenario for investors is that more waves of coronavirus infections lead to additional business shutdowns, which devastated the economy earlier this year. Even if widespread stay-at-home orders don't happen, the fear is that scared shoppers may still shy away from stores and businesses may pull back on their own spending.

In another demonstration of how long the road will be back to a normal economy, the Cruise Lines International Association said Friday that its members are volunteering not to sail any voyages from U.S. ports until Sept. 15.

Cruise operators had some of the market’s sharpest losses, including a 6.9% drop for Royal Caribbean Cruises.

Other companies whose profits sorely need the economy to reopen were also weak. United Airlines fell 6.4%, Nordstrom lost 6.3% and mall owner Simon Property Group fell 5.4%.

Many analysts say volatility is likely the only certainty for the market in upcoming months. It may take years for the economy to fully recover, but it took just a few months for the stock market to rally back to within 9% of its record.

“The good news is that the momentum is still there, the breadth is still there,” said Mark Hackett, chief of investment research for Nationwide. “Everything still says the path of least resistance is higher. But this afternoon is a good reminder that it’s not going to be as easy as it felt.”

In Europe, the German DAX returned 0.4%, and France’s CAC 40 rose 0.4%. The FTSE 100 in London added 1.1%.

In Asia, Japan’s Nikkei 225 rose 0.6%, the Hang Seng in Hong Kong gained 0.7% and the Kospi in South Korea rose 0.4%.

The yield on the 10-year Treasury note held steady at 0.69% after climbing as high as 0.74% earlier in the day. It tends to move with investors’ expectations for the economy and inflation.

A barrel of U.S. crude oil for delivery in July rose 2.3% to settle at $39.75. Brent crude, the international standard, gained 1.6% to settle at $42.19 per barrel.

779

 

[bigdog]

ASX 200 set to fall heavily.
The ASX 200 looks set to fall heavily on Monday after a mixed finish to the week in the United States. According to the latest SPI futures, the benchmark index is expected to open the week 78 points or 1.3% lower this morning. On Wall Street on Friday the Dow Jones fell 0.8%, the S&P 500 dropped 0.55%, and the Nasdaq index traded flat.

 

[bigdog]

A rally in technology companies helped stocks overcome a shaky start Monday, extending Wall Street's solid gains from last week.

The S&P 500 was rose 0.6% after initially sliding 0.6% following weakness in overseas markets as the global tally of coronavirus infections approaches 9 million. Investors are weighing the risks that rising coronavirus cases could pose to hopes for an economic recovery.

That's led traders to bid up stocks in technology companies that offer services online, a thriving conduit of commerce through the outbreak. Investors are also favoring companies that are poised to do well now that more businesses have been given the go-ahead to reopen. Retailers like Gap, Best Buy and other companies that rely on consumer spending rose Monday, outweighing losses in health care, financial and other sectors. Airlines and cruise line operators were among the biggest decliners.

Traders are also continued to hedge their bets by snapping up traditionally less risky assets, such as government bonds and gold, which also rose. Bond yields were mixed.

The price of U.S. crude oil settled above $40 a barrel for the first time since early March, before the economy all but shut down completely due to the outbreak.

The S&P 500 gained 20.12 points to 3,117.86. The Dow Jones Industrial Average picked up 153.50 points, or 0.6%, to 26,024.96 after earlier sliding 203 points. The Nasdaq composite, which is heavily weighted with technology stocks, climbed 110.35 points, or 1.1%, to 10,056.47, extending its winning streak to a seventh day.

Small company stocks, which have lagged the broader market’s rebound that began in April, also notched solid gains. The Russell 2000 index added 14.86 points, or 1.1%, to 1,433.55.

The S&P 500 was coming off its fourth weekly gain in the past five weeks. Encouraging economic data, including retail sales and hiring, have helped stoke optimism among investors that the reopening of businesses in the U.S. and other countries will pull the economy out of its recession relatively quickly. But a rise in new coronvairus cases is clouding the prospects for an economic recovery. On Friday, stocks sold off after Apple said it would be temporarily closing 11 stores again in four states, citing a surge in new virus cases.

ASX 200 expected to rise.
It looks set to be a positive day of trade for the ASX 200 on Tuesday after U.S. stocks pushed higher. According to the latest SPI futures, the benchmark index is expected to rise 39 points or 0.65% at the open. Overnight on Wall Street the Dow Jones pushed 0.6% higher, the S&P 500 rose 0.65%, and the Nasdaq index jumped 1.1%.

https://www.usnews.com/news/busines...hares-mixed-as-us-reports-surging-virus-cases

Stocks End With Solid Gains After Shaking off a Choppy Start
Stocks are closing higher on Wall Street Monday after shaking off a choppy start.
By Associated Press, Wire Service Content June 22, 2020, at 5:00 p.m.

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

A rally in technology companies helped stocks overcome a shaky start Monday, extending Wall Street's solid gains from last week.

The S&P 500 was rose 0.6% after initially sliding 0.6% following weakness in overseas markets as the global tally of coronavirus infections approaches 9 million. Investors are weighing the risks that rising coronavirus cases could pose to hopes for an economic recovery.

That's led traders to bid up stocks in technology companies that offer services online, a thriving conduit of commerce through the outbreak. Investors are also favoring companies that are poised to do well now that more businesses have been given the go-ahead to reopen. Retailers like Gap, Best Buy and other companies that rely on consumer spending rose Monday, outweighing losses in health care, financial and other sectors. Airlines and cruise line operators were among the biggest decliners.

Traders are also continued to hedge their bets by snapping up traditionally less risky assets, such as government bonds and gold, which also rose. Bond yields were mixed.

The price of U.S. crude oil settled above $40 a barrel for the first time since early March, before the economy all but shut down completely due to the outbreak.

The S&P 500 gained 20.12 points to 3,117.86. The Dow Jones Industrial Average picked up 153.50 points, or 0.6%, to 26,024.96 after earlier sliding 203 points. The Nasdaq composite, which is heavily weighted with technology stocks, climbed 110.35 points, or 1.1%, to 10,056.47, extending its winning streak to a seventh day.

Small company stocks, which have lagged the broader market’s rebound that began in April, also notched solid gains. The Russell 2000 index added 14.86 points, or 1.1%, to 1,433.55.

The S&P 500 was coming off its fourth weekly gain in the past five weeks. Encouraging economic data, including retail sales and hiring, have helped stoke optimism among investors that the reopening of businesses in the U.S. and other countries will pull the economy out of its recession relatively quickly. But a rise in new coronvairus cases is clouding the prospects for an economic recovery. On Friday, stocks sold off after Apple said it would be temporarily closing 11 stores again in four states, citing a surge in new virus cases.

“The path of the virus remains uncertain, but the market has certainly gone up and recovered to some degree as though it’s going to go OK,” said Tom Martin, senior portfolio manager with Globalt Investments.

The World Health Organization on Sunday reported the largest single-day increase in coronavirus cases by its count, at more than 183,000 new cases in the previous 24 hours. The U.N. health agency said Sunday that Brazil led the way with 54,771 cases and the US next at 36,617. India confirmed 15,400 new cases.

The United States also reported more than 30,000 new coronavirus cases on Friday and Saturday, with the daily totals their highest since May 1. A large share of the cases are in the South, West and Midwest, where hospitals in some areas are becoming overwhelmed. Case numbers in South Korea and China, meanwhile, have appeared to be moderating after recent outbreaks centered in their capitals.

Many professional investors have been warning that the S&P 500′s big rally of nearly 40% since late March has been overdone and that volatility is likely the market’s only certainty in upcoming months. The market began its turnaround following a nearly 34% sell-off in February and March after the Federal Reserve promised massive amounts of aid for the economy.

While recent economic data have shown improvement, reflecting the reopening of businesses, it may take years for the economy to fully recover. In contrast, it took just a few months for the stock market to rally back to within 9% of its record.

David Kelly, chief global strategist at JPMorgan Funds, sees a disconnect between the market's recent gains and what the economic data show. He says the markets seem to be straying further and further from fundamentals, which is making him “more distrustful of markets as an economic barometer.”

New data on home sales Monday show the virus outbreak continues to disrupt the U.S. housing market. Sales of previously occupied homes plunged 9.7% in May, according to the National Association of Realtors. The May slide pushed sales down to a seasonally adjusted annual rate of 3.91 million, the slowest pace since 2010. Still, the median home price rose 2.3% from a year ago, a sign that demand could pickup up in coming months. Homebuilder shares moved broadly higher. KB Home gained 3.7%.

Investors will get a broader look at the state of the economy toward the end of this week, when the government issues data on consumer spending, weekly unemployment aid applications and durable goods orders. On Tuesday, the Commerce Department serves up new home sales figures for May.

The yield on the 10-year Treasury note held steady at 0.70% after falling earlier in the day. It tends to move with investors’ expectations for the economy and inflation.

In commodities trading, the price of gold rose 0.8% to $1,766.40 an ounce. Oil prices also finished higher. Benchmark U.S. crude oil for July delivery rose 71 cents to settle at $40.46 a barrel for the first time since March 6. Brent crude, the international standard, rose 89 cents to $43.07 a barrel for August delivery.

European markets closed broadly lower. Britain's FTSE 100 lost 0.8% and the CAC 40 in Paris fell 0.6%. Germany's DAX slid 0.5%. Asian markets also fell overnight.

 

[finicky]

ASX 200 expected to rise.
It looks set to be a positive day of trade for the ASX 200 on Tuesday after U.S. stocks pushed higher. According to the latest SPI futures, the benchmark index is expected to rise 39 points or 0.65% at the open.

And again ... Nope, because once again something ephemeral happens intraday to turn the SP500 futures down and so our ASX follows robotically. This time apparently Navarro rumoured to say US China trade deal dead, specifics don't matter though. The US market close or the ASX futures are not a reliable guide except for the ASX open and who cares about the open except daytraders and robots?

 

[bigdog]

Stocks closed higher on Wall Street Tuesday, extending the market’s recent winning streak after another strong showing by technology companies.

The S&P 500 rose 0.4% and is on pace for its third straight monthly gain. The Nasdaq composite, which is heavily weighted with technology stocks, climbed to an all-time high for the second day in a row. Bond yields rose, another sign of increasing confidence in the economy.

Health care stocks and companies that rely on consumer spending were also among the big gainers, while safe-play sectors like real estate and utilities stocks fell.

Investors have been focused on the prospects for an economic recovery as more businesses reopen after being shut down due to the coronavirus pandemic. Encouraging economic data, including retail sales and hiring, have helped stoke optimism that the recession will be relatively short-lived.

Plus, Wall Street has grown confident that the Federal Reserve and Congress are prepared to continue providing a historic amount of support to the market and economy, said Sam Stovall, chief investment strategist at CFRA.

“All of the negative news has basically been built into share prices,” Stovall said. “If we are to stumble, then the Fed and Congress are likely to step in to put a fiscal and monetary floor underneath the economy and the markets. And now, with the likelihood that the economy will not be shutting down entirely should we end up with a second wave, the market is basically saying it’s ‘onward and upward.’”

The S&P 500 rose 13.43 points to 3,131.29. The Dow Jones Industrial Average gained 131.14 points, or 0.5%, to 26,156.10. The Nasdaq climbed 74.89 points, or 0.7%, to 10,131.37. The index has only fallen twice so far in June. The Russell 2000 index of small company stocks picked up 5.81 points, or 0.4%, to 1,439.34.

The market has continued to climb, despite bouts of volatility, even as a rise in new coronvairus cases in the U.S. and other countries clouds the prospects for an economic recovery.

ASX 200 poised to rise.
The ASX 200 looks set to push higher on Wednesday after a positive night of trade for U.S. stocks. According to the latest SPI futures, the benchmark index is expected to rise 4 points or 0.1% at the open. Overnight on Wall Street the Dow Jones rose 0.5%, the S&P 500 pushed 0.4% higher, and the Nasdaq index climbed 0.7%. U.S. stocks lifted amid optimism that a trade deal with China isn’t over.

https://apnews.com/d5423b2b40efd8aa23236a7bb060bd75

More gains for tech as US stocks head for a 3rd monthly gain
By ALEX VEIGA and DAMIAN J. TROISE54 minutes ago

Stocks closed higher on Wall Street Tuesday, extending the market’s recent winning streak after another strong showing by technology companies.

The S&P 500 rose 0.4% and is on pace for its third straight monthly gain. The Nasdaq composite, which is heavily weighted with technology stocks, climbed to an all-time high for the second day in a row. Bond yields rose, another sign of increasing confidence in the economy.

Health care stocks and companies that rely on consumer spending were also among the big gainers, while safe-play sectors like real estate and utilities stocks fell.

Investors have been focused on the prospects for an economic recovery as more businesses reopen after being shut down due to the coronavirus pandemic. Encouraging economic data, including retail sales and hiring, have helped stoke optimism that the recession will be relatively short-lived.

Plus, Wall Street has grown confident that the Federal Reserve and Congress are prepared to continue providing a historic amount of support to the market and economy, said Sam Stovall, chief investment strategist at CFRA.

“All of the negative news has basically been built into share prices,” Stovall said. “If we are to stumble, then the Fed and Congress are likely to step in to put a fiscal and monetary floor underneath the economy and the markets. And now, with the likelihood that the economy will not be shutting down entirely should we end up with a second wave, the market is basically saying it’s ‘onward and upward.’”

The S&P 500 rose 13.43 points to 3,131.29. The Dow Jones Industrial Average gained 131.14 points, or 0.5%, to 26,156.10. The Nasdaq climbed 74.89 points, or 0.7%, to 10,131.37. The index has only fallen twice so far in June. The Russell 2000 index of small company stocks picked up 5.81 points, or 0.4%, to 1,439.34.

The market has continued to climb, despite bouts of volatility, even as a rise in new coronvairus cases in the U.S. and other countries clouds the prospects for an economic recovery.

The World Health Organization said over the weekend that the pandemic is still in its ascendancy. The U.S., which is seeing rapid increases in cases across the South and West, has the most infections and deaths by far in the world, with 2.3 million cases and over 120,000 confirmed virus-related deaths, according to a tally by Johns Hopkins University.

On Tuesday, Federal health officials told Congress to brace for a second wave of coronavirus infections in the fall and winter of this year.

While the virus remains a concern as businesses reopen, new cases aren’t yet that concerning, said Jason Draho, head of Americas asset allocation at UBS Global Wealth Management.

“Right now, that’s something to monitor, but when you look at the underlying data, it’s all still at levels that are not too concerning as opposed to where we were back in March and April,” he said.

Investors have been placing more weight on economic data releases that suggest economies that have reopened are making strides to emerge from a deep recession.

On Tuesday, the Commerce Department said sales of new U.S. homes jumped 16.6% in May to an annual rate of 676,000, exceeding Wall Street’s forecasts.

Further updates on the U.S. economy are expected toward the end of this week, when the government will issue data on consumer spending, weekly unemployment aid applications and durable goods orders.

The yield on the 10-year Treasury note rose to 0.72% from 0.70% late Monday. It tends to move with investors’ expectations for the economy and inflation.

Benchmark U.S. crude oil fell 9 cents to settle at $40.37 a barrel. Brent crude, the international standard, dropped 45 cents to close at 0.5% to $42.63 per barrel.

The market rally followed solid gains in Europe, where indexes marched higher after some encouraging economic data. France’s CAC 40 gained 1.4%, while Germany’s DAX rallied 2.1%. Britain’s FTSE 100 rose 1.2%.

Asian markets overcame some early turbulence caused by reported comments by White House trade adviser Peter Navarro that appeared to suggest the U.S. trade deal with China was in trouble. President Donald Trump later said the agreement was still on.

 

[bigdog]

Wall Street's recent rally hit a snag Wednesday as new coronavirus cases in the U.S. climbed to the highest level in two months, dimming investors’ hopes for a relatively quick economic turnaround.

The S&P 500 skidded 2.6%, shedding its gains for the week and leaving it nearly in the red for the month. The sell-off, which followed steep drops in European markets, accelerated around mid-morning on news that New York, New Jersey and Connecticut will require visitors from states with high infection rates to quarantine for 14 days.

Technology companies, which have been leading the market higher as it bounced back from a plunge in March, accounted for the biggest slice of the pullback. Financial, health care, communication services and industrial sector stocks also took heavy losses. Energy stocks fell the most as the price of oil dropped sharply.

Markets have been rallying recently on hopes that U.S. states and regions around the world could continue to lift the spring lockdowns put in place to slow the spread of the coronavirus. Economic data have been positive, helping fuel the cautious optimism. But the rise in new infections is stoking worries that the reopening of businesses may have to be curtailed again.

“We’ve created this optimistic trade over the last few weeks,” said J.J. Kinahan, chief strategist with TD Ameritrade. “Are we going to be able to get back to business as fast as it has been priced into equities?”

Cruise lines, which would stand to suffer greatly if travel restrictions are extended, were among the biggest losers in the S&P 500. Norwegian Cruise Line, Carnival and Royal Caribbean Cruises all fell more than 11%. Traders also hammered casino operators. Wynn Resorts lost 11% and MGM Resorts International dropped 8.3%. Shares in airlines slumped, too. Delta Air Lines slid 7.8%.

The S&P 500 dropped 80.96 points to 3,050.33. Despite the sharp sell-off, the S&P 500 is still on pace for its best quarter since the fourth quarter of 1998.

The Dow Jones Industrial Average lost 710.16 points, or 2.7%, to 25,445.94. The Nasdaq, which was coming off its second all-time high this week, fell 222.20 points, or 2.2%, to 9,909.17. Small company stocks fared worse than the rest of the market. The Russell 2000 index gave up 49.60 points, or 3.4%, to 1,389.74.

The market has been mostly in rally mode since April as investors focused on the prospects for an economic turnaround as broad areas of the economy reopened. Recently, some encouraging economic reports helped lift expectations that the reopening of businesses in the U.S. and elsewhere could pull the economy out of a deep recession sooner rather than later.

But the recent surge in new infections is undercutting some of that optimism. Coronavirus hospitalizations and caseloads have hit new highs in over a half-dozen U.S. states. New cases nationwide are back near their peak level of two months ago.

ASX 200 to crash lower.
The ASX 200 looks set to crash lower on Thursday after a very poor night of trade on Wall Street. According to the latest SPI futures, the benchmark index is poised to drop 95 points or 1.6% lower at the open. On Wall Street the Dow Jones sank 2.7%, the S&P 500 fell 2.6%, and the Nasdaq index tumbled 2.2%. Investors were selling U.S. stocks amid concerns over a spike in coronavirus cases.

https://www.usnews.com/news/busines...xed-after-us-rally-despite-rising-virus-fears

Stocks Slide on Wall Street as New Coronavirus Cases Surge
Stocks slumped on Wall Street after new coronavirus cases in the U.S. hit their highest level in two months, renewing worries that the economy may take longer to bounce back than investors had hoped.
By Associated Press, Wire Service Content June 24, 2020, at 4:39 p.m.

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

Wall Street's recent rally hit a snag Wednesday as new coronavirus cases in the U.S. climbed to the highest level in two months, dimming investors’ hopes for a relatively quick economic turnaround.

The S&P 500 skidded 2.6%, shedding its gains for the week and leaving it nearly in the red for the month. The sell-off, which followed steep drops in European markets, accelerated around mid-morning on news that New York, New Jersey and Connecticut will require visitors from states with high infection rates to quarantine for 14 days.

Technology companies, which have been leading the market higher as it bounced back from a plunge in March, accounted for the biggest slice of the pullback. Financial, health care, communication services and industrial sector stocks also took heavy losses. Energy stocks fell the most as the price of oil dropped sharply.

Markets have been rallying recently on hopes that U.S. states and regions around the world could continue to lift the spring lockdowns put in place to slow the spread of the coronavirus. Economic data have been positive, helping fuel the cautious optimism. But the rise in new infections is stoking worries that the reopening of businesses may have to be curtailed again.

“We’ve created this optimistic trade over the last few weeks,” said J.J. Kinahan, chief strategist with TD Ameritrade. “Are we going to be able to get back to business as fast as it has been priced into equities?”

Cruise lines, which would stand to suffer greatly if travel restrictions are extended, were among the biggest losers in the S&P 500. Norwegian Cruise Line, Carnival and Royal Caribbean Cruises all fell more than 11%. Traders also hammered casino operators. Wynn Resorts lost 11% and MGM Resorts International dropped 8.3%. Shares in airlines slumped, too. Delta Air Lines slid 7.8%.

The S&P 500 dropped 80.96 points to 3,050.33. Despite the sharp sell-off, the S&P 500 is still on pace for its best quarter since the fourth quarter of 1998.

The Dow Jones Industrial Average lost 710.16 points, or 2.7%, to 25,445.94. The Nasdaq, which was coming off its second all-time high this week, fell 222.20 points, or 2.2%, to 9,909.17. Small company stocks fared worse than the rest of the market. The Russell 2000 index gave up 49.60 points, or 3.4%, to 1,389.74.

The market has been mostly in rally mode since April as investors focused on the prospects for an economic turnaround as broad areas of the economy reopened. Recently, some encouraging economic reports helped lift expectations that the reopening of businesses in the U.S. and elsewhere could pull the economy out of a deep recession sooner rather than later.

But the recent surge in new infections is undercutting some of that optimism. Coronavirus hospitalizations and caseloads have hit new highs in over a half-dozen U.S. states. New cases nationwide are back near their peak level of two months ago.

While early hot spots like New York and New Jersey have seen cases steadily decrease, the virus has been hitting the south and west. Several states on Tuesday set single-day records, including Arizona, California, Mississippi, Nevada and Texas.

On Tuesday, Federal health officials told Congress to brace for a second wave of coronavirus infections in the fall and winter of this year.

“There’s the possibility of shutdowns, but probably more realistically delays in reopening," Kinahan said. “This puts doubt on how comfortable people will be getting on a plane or staying in hotels.”

Wednesday's sell-off may also reflect traders taking the opportunity to unload some stocks that have been big winners in the market's recent rally, said Tracie McMillion, head of global asset allocation strategy for Wells Fargo Investment Institute.

She expects the second half of the year to remain volatile for the market, citing the virus and uncertainty ahead of the U.S. election in November.

“Another concern is that we’re getting closer to earnings season,” McMillion said. “As we get closer, investors might start to get nervous that earnings and guidance could disappoint.”

Major stock indexes in Europe also fell broadly. Germany's DAX dropped 3.4%, while France’s CAC 40 slid 2.9%. Britain's FTSE 100 lost 3.1%. Markets in Asia closed mostly higher.

The yield on the 10-year Treasury note fell to 0.68% from 0.70% late Tuesday. It tends to move with investors’ expectations for the economy and inflation.

In energy trading, benchmark U.S. crude oil slid 5.8% to settle at $38.01 a barrel. Brent crude, the international standard, fell 5.4% to close at $40.31.