NYSE Dow Jones finished today at:

[bigdog]

Big Tech leads stocks to broad gains; GameStop collapses

Big Tech companies and banks helped power a broad rally on Wall Street Tuesday, though shares in GameStop and other recent high-flying stocks hyped by online traders plunged.

The S&P 500 rose 1.4%, extending gains from a day earlier, as investors sized up the latest batch of company earnings reports. Rising crude oil prices and solid earnings results helped lift energy companies, including Exxon Mobil and Marathon Petroleum. Treasury yields rose and the VIX, a measure of fear in the market, fell sharply, a sign volatility was easing.

The wave of buying coincided with a skid in GameStop and AMC Entertainment, stocks that have been caught up in a speculative frenzy by traders in online forums and on social media who seek to inflict damage on Wall Street hedge funds that have bet these stocks would fall. The price of silver, which spiked 9% Monday, fueling speculation the precious metal was also being hyped up by online traders, sank by more than 10%.

“Certainly, there’s been some profit-taking in these names,” said Ross Mayfield, investment strategist at Baird. “You saw with silver, there was an attempt to try a similar cornering of the market, and that didn’t even last two days.”

The S&P 500 index rose 52.45 points to 3,826.31. The Dow Jones Industrial Average gained 475.57 points, or 1.6%, to 30,687.48. The tech-heavy Nasdaq composite climbed 209.38 points, or 1.6%, to 13,612.78. The Russell 200 index of smaller companies also rose, adding 25.28 points, or 1.2%, to 2,151.44. The major indexes remain near their all-time highs set last month.

Treasury yields rose in another sign of investor confidence. The yield on the benchmark 10-year Treasury note rose to 1.10% from 1.06% late Monday.

GameStop plunged 60% to $90 a share, and AMC Entertainment lost 41.2% to $7.82 a share. Both companies have been in the spotlight for more than two weeks as an online community of investors pushed the stocks to astronomical levels.

Trading in those and several other stocks have been restricted by the popular online trading platform Robinhood since last last week following the bouts of extreme volatility. Robinhood needed to secure funding in order to meet deposit thresholds required by organizations that handle the trading orders placed by investors on its platform.

Robinhood eased some of the trading limits on GameStop and select other stocks Tuesday. For example, it now allows users to buy up to 100 shares and options contracts in GameStop and 1,250 in AMC. On Monday, the brokerage was limiting users to 5 shares in GameStop and 75 in AMC.

An online army of traders using the online site Reddit banded together for the past two weeks to snap up shares of GameStop, AMC and other struggling chains, stocks that have been heavily shorted (bets that the stock will fall) by a number of hedge funds. In the process, they’ve done heavy damage to those hedge funds in a stunning reversal of financial power on Wall Street.

But it’s not clear how much longer the Reddit traders can hold the line. Intense media and Wall Street interest pushed many traders into these stocks late last week, with GameStop going as high as $483 last Thursday. They began trading this year at just over $17 a share. The huge run-up in the stock price appears to have little to do with the future prospects of the mall-based retailer, which has been losing money consistently.

While a lot of people seem to be holding a line on some of these positions, the broader market is not showing many signs of strain because of it, said Darrell Cronk, chief investment officer of Wells Fargo Wealth and Investment Management.

“I hope the markets are moving away from some of the issues it dealt with last week and focusing on more of the true fundamentals,” Cronk said.

ASX 200 futures pointing higher​

It looks set to be another positive day of trade for the ASX 200 on Wednesday. According to the latest SPI futures, the ASX 200 is poised to open the day 57 points or 0.85% higher this morning.

This follows another strong night of trade on Wall Street. On closing, the Dow Jones is up 1.57%, the S&P 500 is 1.39% higher, and the Nasdaq is also trading 1.56% higher. Markets appear to be moving on from the GameStop mania.

https://apnews.com/article/gamestop-amc-stocks-crumble-dcd4156afb877193e2931dd16fc4a21b

Big Tech leads stocks to broad gains; GameStop collapses

By DAMIAN J. TROISE and ALEX VEIGA

Big Tech companies and banks helped power a broad rally on Wall Street Tuesday, though shares in GameStop and other recent high-flying stocks hyped by online traders plunged.

The S&P 500 rose 1.4%, extending gains from a day earlier, as investors sized up the latest batch of company earnings reports. Rising crude oil prices and solid earnings results helped lift energy companies, including Exxon Mobil and Marathon Petroleum. Treasury yields rose and the VIX, a measure of fear in the market, fell sharply, a sign volatility was easing.

The wave of buying coincided with a skid in GameStop and AMC Entertainment, stocks that have been caught up in a speculative frenzy by traders in online forums and on social media who seek to inflict damage on Wall Street hedge funds that have bet these stocks would fall. The price of silver, which spiked 9% Monday, fueling speculation the precious metal was also being hyped up by online traders, sank by more than 10%.

“Certainly, there’s been some profit-taking in these names,” said Ross Mayfield, investment strategist at Baird. “You saw with silver, there was an attempt to try a similar cornering of the market, and that didn’t even last two days.”

The S&P 500 index rose 52.45 points to 3,826.31. The Dow Jones Industrial Average gained 475.57 points, or 1.6%, to 30,687.48. The tech-heavy Nasdaq composite climbed 209.38 points, or 1.6%, to 13,612.78. The Russell 200 index of smaller companies also rose, adding 25.28 points, or 1.2%, to 2,151.44. The major indexes remain near their all-time highs set last month.

Treasury yields rose in another sign of investor confidence. The yield on the benchmark 10-year Treasury note rose to 1.10% from 1.06% late Monday.

GameStop plunged 60% to $90 a share, and AMC Entertainment lost 41.2% to $7.82 a share. Both companies have been in the spotlight for more than two weeks as an online community of investors pushed the stocks to astronomical levels.

Trading in those and several other stocks have been restricted by the popular online trading platform Robinhood since last last week following the bouts of extreme volatility. Robinhood needed to secure funding in order to meet deposit thresholds required by organizations that handle the trading orders placed by investors on its platform.

Robinhood eased some of the trading limits on GameStop and select other stocks Tuesday. For example, it now allows users to buy up to 100 shares and options contracts in GameStop and 1,250 in AMC. On Monday, the brokerage was limiting users to 5 shares in GameStop and 75 in AMC.

An online army of traders using the online site Reddit banded together for the past two weeks to snap up shares of GameStop, AMC and other struggling chains, stocks that have been heavily shorted (bets that the stock will fall) by a number of hedge funds. In the process, they’ve done heavy damage to those hedge funds in a stunning reversal of financial power on Wall Street.

But it’s not clear how much longer the Reddit traders can hold the line. Intense media and Wall Street interest pushed many traders into these stocks late last week, with GameStop going as high as $483 last Thursday. They began trading this year at just over $17 a share. The huge run-up in the stock price appears to have little to do with the future prospects of the mall-based retailer, which has been losing money consistently.

While a lot of people seem to be holding a line on some of these positions, the broader market is not showing many signs of strain because of it, said Darrell Cronk, chief investment officer of Wells Fargo Wealth and Investment Management.

“I hope the markets are moving away from some of the issues it dealt with last week and focusing on more of the true fundamentals,” Cronk said.

Uber rose 7% after the company said it would buy liquor delivery service Drizly for $1.1 billion in cash and stock. Solid earnings reports helped lift shares for several companies. Lab equipment maker Waters rose 8.4% for the biggest gain in the S&P 500 after easily beating analysts’ fourth-quarter profit and revenue forecasts. Exxon rose 1.6% and Marathon Petroleum rose 3.9%.

Investors continue to focus on Washington. President Biden invited 10 moderate Republicans to the White House to discuss his proposed $1.9 trillion economic aid plan. Republicans earlier countered with an offer of $600 billion, or less than one-third of Biden’s proposed amount.

Investors bid up stocks heading into 2021 in expectation the rollout of coronavirus vaccines would allow global business and travel to return to normal. That optimism has been dented by infection spikes and disruptions in vaccine deliveries.

 

[bigdog]

Major stock indexes end with modest gains on Wall Street

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street capped a choppy day of trading with modest gains Wednesday, as investors focused on some strong earnings reports from Big Tech companies while remaining cautiously optimistic that Washington will deliver more economic stimulus.

The S&P 500 inched up 0.1% after swinging between a gain of 0.6% and a loss of 0.3%. The tiny gain extended the benchmark index’s winning streak to a third day. Energy, communications and financial stocks helped lift the market. Those gains were primarily kept in check by declines in companies that rely on consumer spending and technology stocks. Treasury yields and oil prices rose.

Investors continued to watch shares of companies such as GameStop and AMC Entertainment, which have been targeted by a community of online investors seeking to force their stock prices higher. Both stocks rose modestly after plunging over the last two days. Both companies have been in the spotlight for more than two weeks as investors pushed the stocks to astronomical levels.

“There’s a tug of war that’s been brewing for a week or so now, that markets are ripe for a correction and whether the events of last week are a precipitating event,” said Jamie Cox, managing partner at Harris Financial Group.

The S&P 500 rose 3.86 points to 3,830.17. The Dow Jones Industrial Average gained 36.12 points, or 0.1%, to 30,723.60. The tech-heavy Nasdaq slipped 2.23 points, or less than 0.1%, to 13,610.54. The index had briefly been above its all-time high set last week.

Smaller companies fared better than the broader market. The Russell 2000 small-caps index rose 8.26 points, or 0.4%, to 2,159.70. The index is up 9.4% this year, while the S&P 500 is up about 2% and the Nasdaq is up 5.6%.

Stocks have been mostly rallying this week, an encouraging start to February after a late fade in January as volatility spiked amid worries about the timing and scope of another round of stimulus spending by the Biden administration, unease over the effectiveness of the government’s coronavirus vaccine distribution and turbulent swings in GameStop and other stocks hyped on social media.

That volatility has subsided this week, with Wall Street focusing mainly on corporate earnings reports while it keeps an eye on Washington for signs of progress on a new aid package.

Democrats and Republicans remain far apart on support for President Joe Biden’s $1.9 trillion stimulus package, but investors are betting that the administration will opt for a reconciliation process to get the legislation through Congress.

Meanwhile, shares of Amazon dropped 2% even though the company reported a huge rise in quarterly profits. Amazon also said its founder and CEO Jeff Bezos would be stepping down as CEO to focus on broader work at the company.

Google’s parent company, Alphabet, jumped 7.3% after reporting a blowout quarter as its digital advertising machine regained momentum.

ASX 200 futures pointing lower​

The Australian share market looks set to end its winning streak on Thursday. According to the latest SPI futures, the ASX 200 is poised to open the day 14 points or 0.2% lower this morning.

This is despite stocks on Wall Street pushing higher overnight. On closing, the Dow Jones was up 0.12%, the S&P 500 is up 0.1%, and the Nasdaq was 0.02% lower.

https://apnews.com/article/joe-bide...markets-asia-1fd34905d93e317802697a9afb8799a1

Major stock indexes end with modest gains on Wall Street

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street capped a choppy day of trading with modest gains Wednesday, as investors focused on some strong earnings reports from Big Tech companies while remaining cautiously optimistic that Washington will deliver more economic stimulus.

The S&P 500 inched up 0.1% after swinging between a gain of 0.6% and a loss of 0.3%. The tiny gain extended the benchmark index’s winning streak to a third day. Energy, communications and financial stocks helped lift the market. Those gains were primarily kept in check by declines in companies that rely on consumer spending and technology stocks. Treasury yields and oil prices rose.

Investors continued to watch shares of companies such as GameStop and AMC Entertainment, which have been targeted by a community of online investors seeking to force their stock prices higher. Both stocks rose modestly after plunging over the last two days. Both companies have been in the spotlight for more than two weeks as investors pushed the stocks to astronomical levels.

“There’s a tug of war that’s been brewing for a week or so now, that markets are ripe for a correction and whether the events of last week are a precipitating event,” said Jamie Cox, managing partner at Harris Financial Group.

The S&P 500 rose 3.86 points to 3,830.17. The Dow Jones Industrial Average gained 36.12 points, or 0.1%, to 30,723.60. The tech-heavy Nasdaq slipped 2.23 points, or less than 0.1%, to 13,610.54. The index had briefly been above its all-time high set last week.

Smaller companies fared better than the broader market. The Russell 2000 small-caps index rose 8.26 points, or 0.4%, to 2,159.70. The index is up 9.4% this year, while the S&P 500 is up about 2% and the Nasdaq is up 5.6%.

Stocks have been mostly rallying this week, an encouraging start to February after a late fade in January as volatility spiked amid worries about the timing and scope of another round of stimulus spending by the Biden administration, unease over the effectiveness of the government’s coronavirus vaccine distribution and turbulent swings in GameStop and other stocks hyped on social media.

That volatility has subsided this week, with Wall Street focusing mainly on corporate earnings reports while it keeps an eye on Washington for signs of progress on a new aid package.

Democrats and Republicans remain far apart on support for President Joe Biden’s $1.9 trillion stimulus package, but investors are betting that the administration will opt for a reconciliation process to get the legislation through Congress.

Meanwhile, shares of Amazon dropped 2% even though the company reported a huge rise in quarterly profits. Amazon also said its founder and CEO Jeff Bezos would be stepping down as CEO to focus on broader work at the company.

Google’s parent company, Alphabet, jumped 7.3% after reporting a blowout quarter as its digital advertising machine regained momentum.

GameStop and other recently high-flying stocks notched modest gains Wednesday. GameStop rose 2.7% and AMC climbed 14.7%. The stocks have been caught up in a speculative frenzy by traders in online forums who seek to inflict damage on Wall Street hedge funds that have bet the stocks would fall. GameStop plunged 60% on Tuesday, and AMC Entertainment lost 41.2%.

Treasury Secretary Janet Yellen has called for a meeting with the Securities and Exchange Commission, Federal Reserve and others to discuss the recent volatility and to determine “whether recent activities are consistent with investor protection and fair and efficient markets,” White House press secretary Jen Psaki said.

GameStop, whose shares have traded mostly on investor opinion instead of actual company news, announced it was hiring Matt Francis, formerly an engineering leader with Amazon Web Services, to the newly created role of chief technology officer.

The vaccine rollout is also becoming more organized and picking up steam.

“That’s very supportive of markets,” Cox said. “The events that will determine the outcome of 2021 are obviously how fast to we reach a point where the world can operate and function more normally.”

Energy companies rose as the price of crude oil jumped 1.7%. Exxon Mobil rose 3.9% and Schlumberger gained 7.4%.

The yield on the 10-year Treasury rose to 1.13% from 1.09% late Tuesday.

 

[bigdog]

Solid company earnings and hopes for aid send stocks higher

A broad rally on Wall Street Thursday added to the market’s solid gains this week and pushed the S&P 500 and Nasdaq composite to all-time highs.

Strong company earnings and optimism that Washington can reach a deal for another round of fiscal stimulus for millions of Americans who need it has kept investors in a buying mood this week. The S&P 500 rose 1.1%, eclipsing the benchmark index’s last record high set early last week. The three major stock indexes are on track for weekly gains above 3%, an encouraging start to February after a late fade in January.

Financial and technology companies lead the way higher. Small-company stocks also had a strong showing, another bullish signal that investors are feeling more optimistic about the economy.

“The path of least resistance seems to be higher,” said Brian Price, head of investment management for Commonwealth Financial Network. “We had a few minor pullbacks since the start of the year, but it really seems an extension of what we saw in the fourth quarter where it seems the market is anticipating lockdowns ending, people going back to work and economies broadly opening.”

The S&P 500 index rose 41.57 points to 3,871.74. It was the index’s fourth-straight gain. The Dow Jones industrial average picked up 332.26 points, or 1.1%, to 31,055.86. The technology-heavy Nasdaq gained 167.20 points, or 1.2%, to 13,777.74, also an all-time high. The Russell 2000 index of smaller company stocks climbed 42.72 points, or 2%, to 2,202.42.

Volatility spiked last month amid worries about the timing and scope of another round of stimulus spending by the Biden administration and unease over the effectiveness of the government’s coronavirus vaccine distribution. A wave of selling left the S&P 500 down 3.3% for the week.

Stocks have shaken off those concerns. So far this week, the S&P 500 is up 4.2%, more than making up for its pullback last week.

“There are a lot of reasons to be optimistic and, obviously, there’s a tremendous amount of stimulus in the system with talks of more,” Price said.

Wall Street continues to be focused on individual company earnings. Shares of eBay rose 5.3% and PayPal climbed 7.4% after both companies reported results that blew away Wall Street’s expectations.

“We’re really impressed with how corporate America has come through earnings season so far,” said Jeff Buchbinder, equity strategist at LPL Financial.

The performance so far is a surprising and welcome about-face from early projections for weak profits. Tech companies are doing particularly well, but financial and smaller companies are also releasing surprisingly good results, he said.

Analysts were expecting an earnings contraction of about 13% heading into the latest round of quarterly reports, according to FactSet. With about half of companies reporting, the S&P 500 is now showing earnings growth of just under 1% and estimates for both the next quarter and all of 2021 are improving.

Shares of the beaten-down companies that have been of intense interest by retail investors fell again. GameStop slid 42.1%, continuing is sharp pace downward following its meteoric rise over the previous two weeks. At $53.50 a share, it’s still well above the $17 price it fetched at the beginning of the year. It traded as high as $483 last Thursday. AMC Entertainment dropped 21%.

ASX 200 expected to rebound​

The Australian share market looks set to rebound this morning and end the week on a high. According to the latest SPI futures, the ASX 200 is poised to open the day 64 points or 0.95% higher this morning.

On closing on Wall Street, the Dow Jones was up 1.08%, the S&P 500 was up 1.9%, and the Nasdaq was also up 1.23%

Asian shares rise amid hopes for global economic rebound

TOKYO (AP) — Asian shares rose Friday, echoing a rally on Wall Street, as hopes grew for a gradual global economic recovery from the damage of the coronavirus pandemic.

apnews.com

Solid company earnings and hopes for aid send stocks higher

By DAMIAN J. TROISE and ALEX VEIGA

A broad rally on Wall Street Thursday added to the market’s solid gains this week and pushed the S&P 500 and Nasdaq composite to all-time highs.

Strong company earnings and optimism that Washington can reach a deal for another round of fiscal stimulus for millions of Americans who need it has kept investors in a buying mood this week. The S&P 500 rose 1.1%, eclipsing the benchmark index’s last record high set early last week. The three major stock indexes are on track for weekly gains above 3%, an encouraging start to February after a late fade in January.

Financial and technology companies lead the way higher. Small-company stocks also had a strong showing, another bullish signal that investors are feeling more optimistic about the economy.

“The path of least resistance seems to be higher,” said Brian Price, head of investment management for Commonwealth Financial Network. “We had a few minor pullbacks since the start of the year, but it really seems an extension of what we saw in the fourth quarter where it seems the market is anticipating lockdowns ending, people going back to work and economies broadly opening.”

The S&P 500 index rose 41.57 points to 3,871.74. It was the index’s fourth-straight gain. The Dow Jones industrial average picked up 332.26 points, or 1.1%, to 31,055.86. The technology-heavy Nasdaq gained 167.20 points, or 1.2%, to 13,777.74, also an all-time high. The Russell 2000 index of smaller company stocks climbed 42.72 points, or 2%, to 2,202.42.

Volatility spiked last month amid worries about the timing and scope of another round of stimulus spending by the Biden administration and unease over the effectiveness of the government’s coronavirus vaccine distribution. A wave of selling left the S&P 500 down 3.3% for the week.

Stocks have shaken off those concerns. So far this week, the S&P 500 is up 4.2%, more than making up for its pullback last week.

“There are a lot of reasons to be optimistic and, obviously, there’s a tremendous amount of stimulus in the system with talks of more,” Price said.

Wall Street continues to be focused on individual company earnings. Shares of eBay rose 5.3% and PayPal climbed 7.4% after both companies reported results that blew away Wall Street’s expectations.

“We’re really impressed with how corporate America has come through earnings season so far,” said Jeff Buchbinder, equity strategist at LPL Financial.

The performance so far is a surprising and welcome about-face from early projections for weak profits. Tech companies are doing particularly well, but financial and smaller companies are also releasing surprisingly good results, he said.

Analysts were expecting an earnings contraction of about 13% heading into the latest round of quarterly reports, according to FactSet. With about half of companies reporting, the S&P 500 is now showing earnings growth of just under 1% and estimates for both the next quarter and all of 2021 are improving.

Shares of the beaten-down companies that have been of intense interest by retail investors fell again. GameStop slid 42.1%, continuing is sharp pace downward following its meteoric rise over the previous two weeks. At $53.50 a share, it’s still well above the $17 price it fetched at the beginning of the year. It traded as high as $483 last Thursday. AMC Entertainment dropped 21%.

In Washington, President Joe Biden urged Democrats lawmakers to “act fast” on his economic stimulus plan but also said he’s open to changes. Democrats and Republicans remain far apart on support for President Joe Biden’s $1.9 trillion stimulus package, but investors are betting that the administration will opt for a reconciliation process to get the legislation through Congress.

In economic data, the number of Americans who filed for unemployment benefits fell below 800,000 last week, which was better than economist expectations but still remains high due to the pandemic. The Labor Department is due to report its jobs data for January on Friday. Wall Street is expecting the closely watched report will show the U.S. economy added 100,000 jobs last month. That would follow a loss of 140,000 jobs in December.

Meanwhile, vaccine distribution continues to move ahead and Wall Street expects an eventual fiscal aid package from Washington to give the economy another jolt.

“Each passing day with a million plus shots going into people arms gets us closer to full reopening,” Buchbinder said. “This economy, we think, will really be rolling in the next couple of months.”

 

[bigdog]

S&P 500 Climbs Again, Closing Out Best Week Since November​

Stocks closed out a winning week with their fifth gain in a row Friday and their biggest weekly increase since November.​

Wall Street closed out a winning week Friday as the S&P 500 notched its fifth gain in a row and its biggest weekly increase since November.

The benchmark index rose 0.4% and ended the week 4.6% higher, more than making up for its decline in January. The latest gain nudged the S&P 500 to another all-time high. The Nasdaq composite also capped the week with a record high. Small -company stocks fared even better than the broader market, a sign that investors are feeling more optimistic about the economy.

The market largely shrugged off a dismal jobs report for January that showed the U.S. economy remaining in dire straits due to the pandemic. Investors have been focusing instead on the prospects for another economic boost from Washington. Overnight, the Senate narrowly passed a measure that will fast-track aid.

"It looks as if the Democrats are moving ahead with or without support from Republicans, and that’s helping the market’s tone,” said Quincy Krosby, chief market strategist at Prudential Financial.

Surprisingly good company earnings reports, news that a recent surge in new coronavirus cases is easing, and progress in the distribution of vaccine, have also helped keep investors in a buying mood, she said.

The S&P 500 index rose 15.09 points, or 0.4%, to 3,886.83. Its weekly gain is its biggest since November. The Dow Jones Industrial Average gained 92.38 points, or 0.3%, to 31,148.24. The Nasdaq rose 78.55 points, or 0.6%, to 13,856.30.

The Department of Labor said Friday that employers added only 49,000 jobs in the month of January, far below economists' forecasts. The disappointing report came as much of the country remains saturated with coronavirus cases. A report on Thursday showed the number of Americans who filed for unemployment benefits remained well above historic norms.

“It’s very consistent with data over last two months which show that job growth is slowing,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

Service industries continue to be the hardest hit by the pandemic as people continue to refrain from travel and dining out, among other activities.

“In some ways it seems the reopening economy is still struggling a little bit and it’s responsible for quite a few jobs,” Samana said.

Investors are focused on the prospects for more stimulus. President Joe Biden urged Democratic lawmakers this week to “act fast” on his economic stimulus plan. Democrats and Republicans remain far apart on support for Biden’s $1.9 trillion stimulus package, but it appears Senate Democrats will be using their new-found majority to push the measure through without Republican support.

The Russell 2000 index of smaller company stocks climbed 30.91 points, or 1.4%, to 2,233.33, a record high. When the Russell outpaces other indexes it's a sign that investors are growing more confident about the economy’s growth prospects. The yield on the 10-year Treasury rose to 1.17% from 1.12% late Thursday.

https://www.usnews.com/news/busines...s-rise-amid-hopes-for-global-economic-rebound

S&P 500 Climbs Again, Closing Out Best Week Since November​

Stocks closed out a winning week with their fifth gain in a row Friday and their biggest weekly increase since November.​

By Associated Press, Wire Service Content Feb. 5, 2021, at 4:46 p.m.

DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers

Wall Street closed out a winning week Friday as the S&P 500 notched its fifth gain in a row and its biggest weekly increase since November.

The benchmark index rose 0.4% and ended the week 4.6% higher, more than making up for its decline in January. The latest gain nudged the S&P 500 to another all-time high. The Nasdaq composite also capped the week with a record high. Small -company stocks fared even better than the broader market, a sign that investors are feeling more optimistic about the economy.

The market largely shrugged off a dismal jobs report for January that showed the U.S. economy remaining in dire straits due to the pandemic. Investors have been focusing instead on the prospects for another economic boost from Washington. Overnight, the Senate narrowly passed a measure that will fast-track aid.

"It looks as if the Democrats are moving ahead with or without support from Republicans, and that’s helping the market’s tone,” said Quincy Krosby, chief market strategist at Prudential Financial.

Surprisingly good company earnings reports, news that a recent surge in new coronavirus cases is easing, and progress in the distribution of vaccine, have also helped keep investors in a buying mood, she said.

The S&P 500 index rose 15.09 points, or 0.4%, to 3,886.83. Its weekly gain is its biggest since November. The Dow Jones Industrial Average gained 92.38 points, or 0.3%, to 31,148.24. The Nasdaq rose 78.55 points, or 0.6%, to 13,856.30.

The Department of Labor said Friday that employers added only 49,000 jobs in the month of January, far below economists' forecasts. The disappointing report came as much of the country remains saturated with coronavirus cases. A report on Thursday showed the number of Americans who filed for unemployment benefits remained well above historic norms.

“It’s very consistent with data over last two months which show that job growth is slowing,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

Service industries continue to be the hardest hit by the pandemic as people continue to refrain from travel and dining out, among other activities.

“In some ways it seems the reopening economy is still struggling a little bit and it’s responsible for quite a few jobs,” Samana said.

Investors are focused on the prospects for more stimulus. President Joe Biden urged Democratic lawmakers this week to “act fast” on his economic stimulus plan. Democrats and Republicans remain far apart on support for Biden’s $1.9 trillion stimulus package, but it appears Senate Democrats will be using their new-found majority to push the measure through without Republican support.

The Russell 2000 index of smaller company stocks climbed 30.91 points, or 1.4%, to 2,233.33, a record high. When the Russell outpaces other indexes it's a sign that investors are growing more confident about the economy’s growth prospects. The yield on the 10-year Treasury rose to 1.17% from 1.12% late Thursday.

Gains in communications stocks and companies that rely on consumer spending helped lift the market, outweighing a decline in technology sector stocks.

Meanwhile, companies that online investors have clambered to over the past few weeks continued to trade with heavy volatility. GameStop jumped 19.2% to $63.77. That's far below the high of $483 it reached last week but still well above the $17 it traded at near the beginning of the year.

The rally in GameStop may have been spurred by Robinhood's move Friday to lift all the restrictions the online trading platform had placed last week on trading in the stock and shares of a few other companies that were hyped on social media and internet forums.

 

[bigdog]

ASX 200 expected to rise​

The ASX 200 is expected to open the week slightly higher. According to the latest SPI futures, the benchmark index is poised to rise 5 points at the open. This follows a positive end to the week on Wall Street, which saw the Dow Jones rise 0.3%, the S&P 500 climb 0.4%, and the Nasdaq push 0.6% higher. The S&P 500 climbed 4.7% over the five days, which was its best weekly performance since November.

 

[bigdog]

Stocks pushed to more gains and record highs on Wall Street, just as the market came off its biggest week since November.​

U.S. stocks notched more gains and pushed to new highs Monday, extending a winning streak that just gave the market its best weekly gain since November.

The S&P 500 rose 0.7%, it's sixth straight gain. The three major indexes climbed to an all-time high, as did a benchmark of smaller company stocks. Technology and financial stocks helped lead the broad rally. Energy sector companies surged the most following a 2% jump in the price of U.S. crude oil. Treasury yields mostly rose.

Investors have been encouraged by surprisingly good corporate earnings reports, news that a recent surge in new coronavirus cases is easing, and progress in the distribution of vaccines.

“The resilience of the corporate sector has been resounding,” said Ross Mayfield, investment strategy analyst at Baird. “The path of least resistance is still higher.”

The S&P 500 rose 28.76 points to 3,915.59. The Dow Jones Industrial Average gained 237.52 points, or 0.8%, to 31,385.76. The Nasdaq composite climbed 131.35 points, or1%, to 13,987.64.

Small-company stocks continued to far outpace the rest of the market, a sign investors are feeling optimistic about the economy. The Russell 2000 index rose 56.43 points, or 2.5%, to 2,289.76.

President Biden and Congressional Democrats appear to be moving forward with their own version of a coronavirus stimulus bill that is estimated to cost $1.9 trillion. The Senate and House took procedural steps late last week to pass the bill using a process known as reconciliation, which only requires 51 votes in the Senate. The Senate is split 50-50, with Vice President Kamala Harris the tiebreaking vote.

“Looks like they’ll get a package together and get it through probably in mid-March, which is when you start to see those emergency pandemic programs expire," said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management.

In another sign of optimism, Treasury yields continued to push mostly higher. The yield on the 10-year Treasury note rose to 1.17% from 1.15% late Friday, more than double where it was six months ago. While there have been near-zero signs of inflation in recent months, investors believe improving economic fortunes and trillions of dollars in stimulus could make stocks more attractive, and therefore make bond yields rise as their prices fall.

Energy stocks were among the big winners Monday. Marathon Oil notched the biggest gain in the S&P 500, vaulting 12.1%. Occidental Petroleum surged 12.81%.

Tesla rose 1.3% after the company said it purchased $1.5 billion in Bitcoin and pIans to allow customers to pay for their electric vehicles with the digital currency. Bitcoin was up 13.2% to $43,252, according to digital currency brokerage Coinbase.

Investors continue to watch shares of GameStop, AMC Entertainment and other beaten-down companies who have been a focus of online investors the last several weeks. GameStop shares fell 5.9% to $60 after shedding an early gain. The stock had a massive drop last week. Just this month GameStop shares are down more than 81%.

ASX 200 expected to fall​

The Australian share market looks set to end its positive run on Tuesday. According to the latest SPI futures, the benchmark index is poised to fall 21 points or 0.3% at the open. This is despite stocks on Wall Street performing positively overnight.

On closing the Dow Jones was up 0.76%, the S&P 500 up 0.74%, and the Nasdaq trading 0.95% higher.

https://www.usnews.com/news/busines...s-rise-as-optimism-grows-over-global-recovery

Stocks Push to More Gains, and Record Highs, on Wall Street​

Stocks pushed to more gains and record highs on Wall Street, just as the market came off its biggest week since November.​

By Associated Press, Wire Service Content Feb. 8, 2021, at 4:40 p.m

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

U.S. stocks notched more gains and pushed to new highs Monday, extending a winning streak that just gave the market its best weekly gain since November.

The S&P 500 rose 0.7%, it's sixth straight gain. The three major indexes climbed to an all-time high, as did a benchmark of smaller company stocks. Technology and financial stocks helped lead the broad rally. Energy sector companies surged the most following a 2% jump in the price of U.S. crude oil. Treasury yields mostly rose.

Investors have been encouraged by surprisingly good corporate earnings reports, news that a recent surge in new coronavirus cases is easing, and progress in the distribution of vaccines.

“The resilience of the corporate sector has been resounding,” said Ross Mayfield, investment strategy analyst at Baird. “The path of least resistance is still higher.”

The S&P 500 rose 28.76 points to 3,915.59. The Dow Jones Industrial Average gained 237.52 points, or 0.8%, to 31,385.76. The Nasdaq composite climbed 131.35 points, or1%, to 13,987.64.

Small-company stocks continued to far outpace the rest of the market, a sign investors are feeling optimistic about the economy. The Russell 2000 index rose 56.43 points, or 2.5%, to 2,289.76.

President Biden and Congressional Democrats appear to be moving forward with their own version of a coronavirus stimulus bill that is estimated to cost $1.9 trillion. The Senate and House took procedural steps late last week to pass the bill using a process known as reconciliation, which only requires 51 votes in the Senate. The Senate is split 50-50, with Vice President Kamala Harris the tiebreaking vote.

“Looks like they’ll get a package together and get it through probably in mid-March, which is when you start to see those emergency pandemic programs expire," said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management.

In another sign of optimism, Treasury yields continued to push mostly higher. The yield on the 10-year Treasury note rose to 1.17% from 1.15% late Friday, more than double where it was six months ago. While there have been near-zero signs of inflation in recent months, investors believe improving economic fortunes and trillions of dollars in stimulus could make stocks more attractive, and therefore make bond yields rise as their prices fall.

Energy stocks were among the big winners Monday. Marathon Oil notched the biggest gain in the S&P 500, vaulting 12.1%. Occidental Petroleum surged 12.81%.

Tesla rose 1.3% after the company said it purchased $1.5 billion in Bitcoin and pIans to allow customers to pay for their electric vehicles with the digital currency. Bitcoin was up 13.2% to $43,252, according to digital currency brokerage Coinbase.

Investors continue to watch shares of GameStop, AMC Entertainment and other beaten-down companies who have been a focus of online investors the last several weeks. GameStop shares fell 5.9% to $60 after shedding an early gain. The stock had a massive drop last week. Just this month GameStop shares are down more than 81%.

 

[bigdog]

Stocks end mixed, ending a 6-day winning streak for S&P 500

The major U.S. stocks capped a listless day of trading Tuesday with an uneven finish that snapped a six-day winning streak for the S&P 500 even as the Nasdaq set another all-time high.

A late fade pulled the S&P 500 down 0.1%, just below its record high set a day earlier. The benchmark index closed with a nearly even split between gainers and losers. A mix of companies that deal with consumer services and products were the biggest drag on the broader market, outweighing gains in communications, industrial and health care stocks.

A slight pullback after six straight days of gains is not uncommon, as investors pause during a rally to reassess and wait for more economic data to see where the market goes next.

Investors continued to monitor the action in Washington, where it appears Democrats plan to move ahead without Republican help on a major stimulus bill for the economy.

“It seems like fiscal stimulus will pass through reconciliation and the result will be one that is larger than was thought probably two or three weeks ago,” said Keith Buchanan, senior portfolio manager at Globalt Investments.

The S&P 500 index slipped 4.36 points to 3,911.23. The Dow Jones Industrial Average dropped 9.93 points, or less than 0.1%, to 31,375.83. The Nasdaq rose 20.06 points, or 0.1%, to 14,007.70, its fourth straight gain. The Russell 2000 index of small company stocks rose 9.24 points, or 0.4%, to 2,299. The four indexes set all-time highs on Monday.

Stocks have been moving steadily higher for several days as Wall Street becomes more optimistic that the worst parts of the economic impact of the coronavirus pandemic might be in the rearview mirror. Vaccine rollouts continue both in the U.S. and globally, with the U.S. administrating hundreds of thousands of doses per day.

“The vaccinations have outpaced the virus and that becomes part of what’s playing into the optimism in the market,” Buchanan said. “It makes for an environment where it’s getting back to some sense of normality.”

Washington is preparing to go big for its next round of economic stimulus to support struggling Americans and businesses. Democrats have rallied around President Joe Biden’s $1.9 trillion stimulus plan, which will include one-time payments to Americans plus a likely increase in the federal minimum wage to $15 an hour.

Expectations for another financial boost for the economy have helped keep investors in a buying mood.

The market’s strong start to February and the strength in shares of companies that rely on consumer spending “is an indicator of the optimism creeping higher and the assumption that consumers in the U.S. will get a larger check perhaps than we thought three or four weeks ago,” Buchanan said.

ASX 200 futures pointing higher​

The Australian share market is expected to rebound slightly on Wednesday. According to the latest SPI futures, the benchmark index is poised to open the day 0.2% or 13 points higher.

The major U.S. stocks capped a listless day of trading Tuesday with an uneven finish that snapped a six-day winning streak for the S&P 500 even as the Nasdaq set another all-time high. On closing the DOW was down 0.03%, the S&P 500 down 0.11%, and the Nasdaq 0.14% higher.

Asian stocks advance after Wall St ends winning streak

Asian stock markets are higher after Wall Street broke a six-day winning streak. Shanghai, Tokyo, Hong Kong and Seoul all advanced.

apnews.com

Stocks end mixed, ending a 6-day winning streak for S&P 500

By DAMIAN J. TROISE and ALEX VEIGA

By Associated Press, Wire Service Content Feb. 9

The major U.S. stocks capped a listless day of trading Tuesday with an uneven finish that snapped a six-day winning streak for the S&P 500 even as the Nasdaq set another all-time high.

A late fade pulled the S&P 500 down 0.1%, just below its record high set a day earlier. The benchmark index closed with a nearly even split between gainers and losers. A mix of companies that deal with consumer services and products were the biggest drag on the broader market, outweighing gains in communications, industrial and health care stocks.

A slight pullback after six straight days of gains is not uncommon, as investors pause during a rally to reassess and wait for more economic data to see where the market goes next.

Investors continued to monitor the action in Washington, where it appears Democrats plan to move ahead without Republican help on a major stimulus bill for the economy.

“It seems like fiscal stimulus will pass through reconciliation and the result will be one that is larger than was thought probably two or three weeks ago,” said Keith Buchanan, senior portfolio manager at Globalt Investments.

The S&P 500 index slipped 4.36 points to 3,911.23. The Dow Jones Industrial Average dropped 9.93 points, or less than 0.1%, to 31,375.83. The Nasdaq rose 20.06 points, or 0.1%, to 14,007.70, its fourth straight gain. The Russell 2000 index of small company stocks rose 9.24 points, or 0.4%, to 2,299. The four indexes set all-time highs on Monday.

Stocks have been moving steadily higher for several days as Wall Street becomes more optimistic that the worst parts of the economic impact of the coronavirus pandemic might be in the rearview mirror. Vaccine rollouts continue both in the U.S. and globally, with the U.S. administrating hundreds of thousands of doses per day.

“The vaccinations have outpaced the virus and that becomes part of what’s playing into the optimism in the market,” Buchanan said. “It makes for an environment where it’s getting back to some sense of normality.”

Washington is preparing to go big for its next round of economic stimulus to support struggling Americans and businesses. Democrats have rallied around President Joe Biden’s $1.9 trillion stimulus plan, which will include one-time payments to Americans plus a likely increase in the federal minimum wage to $15 an hour.

Expectations for another financial boost for the economy have helped keep investors in a buying mood.

The market’s strong start to February and the strength in shares of companies that rely on consumer spending “is an indicator of the optimism creeping higher and the assumption that consumers in the U.S. will get a larger check perhaps than we thought three or four weeks ago,” Buchanan said.

Several companies made big moves after reporting their latest quarterly results Tuesday. Hanesbrands soared 24.9% for the biggest gain in the S&P 500 after reporting earnings that came in well ahead of what analysts were expecting.

Mobile games developer Glu Mobile vaulted 34.9% after it agreed to be acquired by Electronic Arts in a deal valued at $2.1 billion. Shares in Electronic Arts, maker of “Medal of Honor” and other video games, rose 2.6%.

Shares of GameStop and AMC Entertainment continue to be volatile, as online investors remain in a tug-of-war with Wall Street institutional investors over the struggling companies’ values. GameStop shares fell 16.1% and AMC lost 11%.

Traders in cryptocurrencies continued to push up the price of bitcoin. It rose 7.3% to $47,184, according to the tracking site CoinDesk. Bitcoin futures on the Chicago Mercantile Exchange climbed 6.6% to $47,700. The futures allow investors to make bets on the future price of the digital currency.

Treasury yields were mostly higher. The yield on the 10-year Treasury note rose to 1.16% from 1.14% late Monday.

 

[bigdog]

Stocks End Mixed After a Day of Wavering; Bond Yields Fall

Major U.S. stock indexes ended another up-and-down day of trading more or less where they started out, although a small gain nudged the Dow Jones Industrial Average to another record high.

Another wobbly day on Wall Street ended with the major stock indexes mostly lower, though the Dow Jones Industrial Average inched up to another all-time high.

The S&P 500 slipped less than 0.1% after swinging between a gain of 0.5% and a loss of 0.7%. Nearly 60% of the companies in the benchmark index rose, though a slide in technology stocks and companies that provide consumer services and products kept those gains in check.

Treasury yields fell after a government report showed that inflation remained tame last month.

The muted market action follows a string of record highs for the major stock indexes. Investors have been encouraged by surprisingly good company earnings reports, indications that a recent surge in new coronavirus cases is easing, progress in the distribution of vaccines and signs that lawmakers in Washington are moving toward delivering another financial boost for the economy.

“We're sort of catching our breath after the surge we had last week,” Sam Stovall, chief investment strategist at CFRA.

The S&P 500 dropped 1.35 points to 3,909.88. The Dow rose 61.97 points, or 0.2% to 31,437.80. The Nasdaq lost 35.16 points, or 0.3%, to 13,972.53. The Russell 2000 index of small companies fell 16.56 points, or 0.7%, to 2,282.44.

The Labor Department said Wednesday that U.S. consumer prices rose 0.3% in January, led by a surge in energy. Even though the gain was the biggest monthly increase since July, inflation over the past year has remained relatively low, up a modest 1.4%. Core inflation, which excludes volatile food and energy costs, is also up 1.4% with core prices unchanged in January.

The report was encouraging for investors because it suggests the U.S. economy will be able to receive more stimulus without overheating.

“Generally, the market has seen a very favorable backdrop and that likely remains the case going forward,” said Sal Bruno, chief investment officer at IndexIQ. “Inflation remains benign and there’s still going to be a pretty big stimulus package going forward.”

The yield on the 10-year Treasury note fell to 1.13% from 1.15% late Wednesday. It was as a high as 1.20% earlier this week.

Investors have started watching inflation metrics more closely as Democrats in Congress prepare to inject $1.9 trillion of stimulus into the economy. U.S. businesses are starting to reopen and millions of Americans are now vaccinated, meaning there could be a surge of economic activity and therefore potential inflation. Before Wednesday’s report, Treasury yields had been climbing steadily for weeks, which is typically a sign that investors expect both the economy to get better and for inflation to increase.

“Consumer price inflation remains very tame,” said Kathy Bostjancic, chief U.S. financial economist at Oxford Economics.

Investors continued to monitor the latest company earnings reports. Twitter and Under Armour jumped 13.2% and 8.3%, respectively, after delivering quarterly report cards that were much better than analysts were expecting. Twitter became the latest tech giant to report strong results despite the pandemic.

ASX 200 futures pointing lower​

It looks set to be a tough day for the Australian share market on Thursday. According to the latest SPI futures, the benchmark index is expected to open the day 0.5% or 32 points lower this morning.

Another wobbly day on Wall Street ended with the major stock indexes mostly lower, though the Dow Jones Industrial Average inched up to another all-time high. On closing the Dow Jones was up 0.20%, the S&P 500 down 0.03%, and the Nasdaq down 0.25%

https://www.usnews.com/news/busines...cks-advance-after-wall-st-ends-winning-streak

Stocks End Mixed After a Day of Wavering; Bond Yields Fall

Major U.S. stock indexes ended another up-and-down day of trading more or less where they started out, although a small gain nudged the Dow Jones Industrial Average to another record high.

By Associated Press, Wire Service Content Feb. 10, 2021, at 4:51 p.m.

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

Another wobbly day on Wall Street ended with the major stock indexes mostly lower, though the Dow Jones Industrial Average inched up to another all-time high.

The S&P 500 slipped less than 0.1% after swinging between a gain of 0.5% and a loss of 0.7%. Nearly 60% of the companies in the benchmark index rose, though a slide in technology stocks and companies that provide consumer services and products kept those gains in check.

Treasury yields fell after a government report showed that inflation remained tame last month.

The muted market action follows a string of record highs for the major stock indexes. Investors have been encouraged by surprisingly good company earnings reports, indications that a recent surge in new coronavirus cases is easing, progress in the distribution of vaccines and signs that lawmakers in Washington are moving toward delivering another financial boost for the economy.

“We're sort of catching our breath after the surge we had last week,” Sam Stovall, chief investment strategist at CFRA.

The S&P 500 dropped 1.35 points to 3,909.88. The Dow rose 61.97 points, or 0.2% to 31,437.80. The Nasdaq lost 35.16 points, or 0.3%, to 13,972.53. The Russell 2000 index of small companies fell 16.56 points, or 0.7%, to 2,282.44.

The Labor Department said Wednesday that U.S. consumer prices rose 0.3% in January, led by a surge in energy. Even though the gain was the biggest monthly increase since July, inflation over the past year has remained relatively low, up a modest 1.4%. Core inflation, which excludes volatile food and energy costs, is also up 1.4% with core prices unchanged in January.

The report was encouraging for investors because it suggests the U.S. economy will be able to receive more stimulus without overheating.

“Generally, the market has seen a very favorable backdrop and that likely remains the case going forward,” said Sal Bruno, chief investment officer at IndexIQ. “Inflation remains benign and there’s still going to be a pretty big stimulus package going forward.”

The yield on the 10-year Treasury note fell to 1.13% from 1.15% late Wednesday. It was as a high as 1.20% earlier this week.

Investors have started watching inflation metrics more closely as Democrats in Congress prepare to inject $1.9 trillion of stimulus into the economy. U.S. businesses are starting to reopen and millions of Americans are now vaccinated, meaning there could be a surge of economic activity and therefore potential inflation. Before Wednesday’s report, Treasury yields had been climbing steadily for weeks, which is typically a sign that investors expect both the economy to get better and for inflation to increase.

“Consumer price inflation remains very tame,” said Kathy Bostjancic, chief U.S. financial economist at Oxford Economics.

Investors continued to monitor the latest company earnings reports. Twitter and Under Armour jumped 13.2% and 8.3%, respectively, after delivering quarterly report cards that were much better than analysts were expecting. Twitter became the latest tech giant to report strong results despite the pandemic.

Energy companies made some of the broadest gains as oil prices edged higher, adding to a roughly 12% gain so far in February. Devon Energy rose 4.6% and Hess gained 2.1%.

Cannabis stocks surged as members of the same online forum that hyped up GameStop, AMC Entertainment and other beaten-down companies in recent weeks began encouraging each other to snap up shares in marijuana companies.

Canadian cannabis company Sundial Growers vaulted 78.8%. The stock is up more than 500% so far this year. Shares in Aphria and Tilray, Canadian companies that agreed to combine in December, also rose. Aphria gained 10.7%, adding to its 280% gain this year, while Tilray jumped 50.9%. It's up more than 670% this year.

Marijuana stocks had been surging before becoming the latest darling of online investors as more states moved last year to allow legal sales. The stocks are also benefiting from optimism that industry friendly legislation measures could become law under the Biden administration. Last week, Democratic leaders in the Senate reiterated their intention to move on comprehensive cannabis reform in the current legislative session.

“At least in this case there's either momentum or fundamentals underpinning a move like this,” Stovall said. “At the same time, you wonder if it's simply another form of speculation.”

Shares in GameStop and AMC Entertainment, which have been recently pulling back sharply from their runup at the end of January, rose 1.8% and 5.5%, respectively.

 

[bigdog]

US Stock Indexes Wobble as Investor Caution Offsets Optimism​

Stocks are closing nearly flat on Wall Street Thursday as investors remain cautiously optimistic about prospects for a new round of government aid as the economic recovery seemingly stalls.​

Another day of choppy trading on Wall Street left the major U.S. stock indexes nearly flat Thursday, even as the S&P 500 and Nasdaq composite hit all-time highs.

The S&P 500 rose 0.2% after wobbling between small gains and losses up until the final minutes of trading. Technology stocks led the gainers after two relatively weak days, almost single-handedly outweighing losses by energy stocks, banks and companies that rely on consumer spending.

The yield on 10-year Treasury notes rose to 1.16% from 1.15% late Wednesday after being as high as 1.20% earlier this week.

Wall Street continued to digest solid corporate earnings and updates on a decline of new virus cases. The latest government report on jobless claims, though, reaffirmed that employment remains a weak spot in the economy as vaccine distribution ramps up in the hopes of eventually ending the pandemic and its impact.

While the number of unemployment claims fell slightly, they remain well above historic levels.

“Even though (claims) are a bit better, they’re still elevated, and this is a concern because we need to get people back to work," said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors.

The S&P 500 rose 6.50 points to 3,916.38, eclipsing the index's last record high set Monday. The Dow Jones Industrial Average slipped 7.10 points, or less than 0.1%, to 31,430.70 a day after setting a new record high. The tech-heavy Nasdaq gained 53.24 points, or 0.4%, to 14,025.77. Its previous all-time high was Tuesday.

Small company stocks, which have been strong gainers on hopes for an economic recovery by the second half of this year, notched gains. The Russell 2000 index added 2.88 points, or 0.1%, to 2,285.32. The index is up 15.7% so far this year, while the S&P 500 is up 4.3%.

The action has been mostly muted on Wall Street this week following a string of record highs for the major stock indexes. Investors are still looking for more government aid to help bolster the struggling economy as vaccine distribution progresses and the number of new virus cases continues falling. Democrats in Congress are working on a potential $1.9 trillion relief package that would include direct payments to people and more jobless aid as unemployment remains stubbornly high.

The number of Americans seeking unemployment benefits fell slightly last week to 793,000. The job market had shown tentative improvement last summer but slowed through the fall and in the past two months. Nearly 10 million jobs still remain lost to the pandemic.

Companies continued reporting mostly solid earnings Thursday, adding to a surprisingly good earnings season. Kraft Heinz climbed 4.9% and Zillow Group jumped 17.8% after beating Wall Street's fourth-quarter profit forecasts.

The pandemic and business shutdowns are still hurting many companies and crimping their financial results. Molson Coors fell 9.1% for the biggest decline in the S&P 500 after its profits fell short of expectations because business shutdowns in Europe hurt sales.

Elsewhere in the market, shares of online dating service operator Bumble soared 63.5% on their first day of trading. And cannabis stocks fell broadly a day after surging amid a buying spree fueled partly by members of the same online forum that hyped GameStop and other beaten-down companies in recent weeks.

Many markets in Asia were closed for the Lunar New Year and other holidays. Markets in Europe ended mixed

ASX 200 futures pointing lower​

The Australian share market could have an underwhelming finish to the week on Friday. According to the latest SPI futures, the benchmark index is expected to open the day 0.1% or 5 points lower this morning.

This follows another day of choppy trading on Wall Street left the major U.S. stock indexes nearly flat Thursday, even as the S&P 500 and Nasdaq composite hit all-time highs. On closing the Dow Jones down 0.2%, the S&P 500 up 0.17%, and the Nasdaq 0.38% higher.

https://www.usnews.com/news/busines...mostly-gain-after-biden-speaks-with-chinas-xi

US Stock Indexes Wobble as Investor Caution Offsets Optimism​

Stocks are closing nearly flat on Wall Street Thursday as investors remain cautiously optimistic about prospects for a new round of government aid as the economic recovery seemingly stalls.​

By Associated Press, Wire Service Content Feb. 11, 2021, at 4:59 p.m.

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

Another day of choppy trading on Wall Street left the major U.S. stock indexes nearly flat Thursday, even as the S&P 500 and Nasdaq composite hit all-time highs.

The S&P 500 rose 0.2% after wobbling between small gains and losses up until the final minutes of trading. Technology stocks led the gainers after two relatively weak days, almost single-handedly outweighing losses by energy stocks, banks and companies that rely on consumer spending.

The yield on 10-year Treasury notes rose to 1.16% from 1.15% late Wednesday after being as high as 1.20% earlier this week.

Wall Street continued to digest solid corporate earnings and updates on a decline of new virus cases. The latest government report on jobless claims, though, reaffirmed that employment remains a weak spot in the economy as vaccine distribution ramps up in the hopes of eventually ending the pandemic and its impact.

While the number of unemployment claims fell slightly, they remain well above historic levels.

“Even though (claims) are a bit better, they’re still elevated, and this is a concern because we need to get people back to work," said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors.

The S&P 500 rose 6.50 points to 3,916.38, eclipsing the index's last record high set Monday. The Dow Jones Industrial Average slipped 7.10 points, or less than 0.1%, to 31,430.70 a day after setting a new record high. The tech-heavy Nasdaq gained 53.24 points, or 0.4%, to 14,025.77. Its previous all-time high was Tuesday.

Small company stocks, which have been strong gainers on hopes for an economic recovery by the second half of this year, notched gains. The Russell 2000 index added 2.88 points, or 0.1%, to 2,285.32. The index is up 15.7% so far this year, while the S&P 500 is up 4.3%.

The action has been mostly muted on Wall Street this week following a string of record highs for the major stock indexes. Investors are still looking for more government aid to help bolster the struggling economy as vaccine distribution progresses and the number of new virus cases continues falling. Democrats in Congress are working on a potential $1.9 trillion relief package that would include direct payments to people and more jobless aid as unemployment remains stubbornly high.

The number of Americans seeking unemployment benefits fell slightly last week to 793,000. The job market had shown tentative improvement last summer but slowed through the fall and in the past two months. Nearly 10 million jobs still remain lost to the pandemic.

Companies continued reporting mostly solid earnings Thursday, adding to a surprisingly good earnings season. Kraft Heinz climbed 4.9% and Zillow Group jumped 17.8% after beating Wall Street's fourth-quarter profit forecasts.

The pandemic and business shutdowns are still hurting many companies and crimping their financial results. Molson Coors fell 9.1% for the biggest decline in the S&P 500 after its profits fell short of expectations because business shutdowns in Europe hurt sales.

Elsewhere in the market, shares of online dating service operator Bumble soared 63.5% on their first day of trading. And cannabis stocks fell broadly a day after surging amid a buying spree fueled partly by members of the same online forum that hyped GameStop and other beaten-down companies in recent weeks.

Aphria and Tilray, Canadian cannabis companies that agreed to combine in December, fell 35.8% and 49.7%, respectively. So far this year, Aphria has more than doubled, while Tilray has nearly quadrupled in value. Sundial Growers fared better, recovering from an early slide to gain 3.1%. It's price has increased more than six-fold this year.

Shares of Mastercard rose 2.6% after the payment processing company said it would start integrating cyber currencies into its payment network, allowing people to potentially transfer currencies like Bitcoin from customer to merchant. Bitcoin also rose on the announcement, gaining more than 4%, according to the online currency brokerage Coinbase.

President Joe Biden held his first conversation with Chinese leader Xi Jinping. Although there wasn’t any indication of a major change in U.S. trade policy, businesses are hoping for a less combative approach to trade policy between the world’s two biggest economies than during the Trump administration. Technology companies were among some of the hardest hit companies by tough trade policies during the previous administration.

Many markets in Asia were closed for the Lunar New Year and other holidays. Markets in Europe ended mixed.

 

[bigdog]

S&P 500 closes wobbly week at new record high

Most Asian markets were closed to mark the Lunar New Year and European markets closed higher.

U.S. stock and bond markets are closed Monday for Washington’s Birthday.

Technology companies led a late-afternoon rally on Wall Street Friday that capped a week of wobbly trading with the major stock indexes hitting all-time highs.

The S&P 500 rose 0.5% after spending most of the day wavering between small gains and losses. The gain nudged the benchmark index to a record high for the second day in a row. The tech-heavy Nasdaq composite and the Dow Jones Industrial Average also set new highs.

More companies reported solid earnings, including manufacturer Mohawk Industries and genetic testing company Illumina. Bond yields rose, giving banks a boost. Bumble shares continued to climb after the company made a big splash in its stock market debut the day before.

Optimism that Washington will come through on trillions of dollars of more aid for the economy and encouraging company earnings reports have helped stocks grind higher this month, along with hopes that the coronavirus vaccine rollout will set the stage for stronger economic growth in the second half of this year.

“The one thing that continues to be supportive for the market is just the fact that the risk-reward in the U.S. equity market still seems to be the best game in town,” said J.J. Kinahan, chief strategist with TD Ameritrade.

The S&P 500 rose 18.45 points to 3,934.83, while the Dow gained 27.70 points, or 0.1% to 31,458.40. The Nasdaq added 69.70 points, or 0.5%, to 14,095.47.

Traders also bid up shares in smaller companies. The Russell 2000 index rose 4.04 points, or 0.2%, to 2,289.36.

Despite a week of mostly minor gains and losses for the broader market, the S&P 500 notched its second straight weekly gain.

Investors are hoping for a new round of U.S. government aid as the economic recovery falters. The latest U.S. government report on jobless claims reaffirmed that employment remains a weak spot in the economy, even as vaccine distribution ramps up in the hopes of eventually ending the pandemic. The University of Michigan survey of consumer sentiment came in well below expectations as well, a sign that consumers are wary to spend in the face of economic uncertainty.

Investors do not expect the market to move substantially higher in the near term until there’s more clarity on the future of government stimulus and the direction of the U.S. economy. Democrats have decided to use a legislative process that does not require Republican support to pass the $1.9 trillion package.

“We’re sort of awaiting catalysts,” said Jeffrey Kleintop, chief global investment strategist at Charles Schwab. “The market is still of the opinion that there will be a vaccine-led, broad economic recovery in the second half of this year.”

A majority of companies have now reported their latest round of earnings and the results have been surprisingly good. Roughly 75% of companies in the S&P 500 have released results, showing overall growth of 2.8%, according to FactSet. That’s a sharp reversal from the 13% contraction analysts had forecast in late September.

https://apnews.com/article/technolo...cial-markets-6055b043e5c92355cde80b975bedc6ac

S&P 500 closes wobbly week at new record high

By KEN SWEET, DAMIAN J. TROISE and ALEX VEIGA

Technology companies led a late-afternoon rally on Wall Street Friday that capped a week of wobbly trading with the major stock indexes hitting all-time highs.

The S&P 500 rose 0.5% after spending most of the day wavering between small gains and losses. The gain nudged the benchmark index to a record high for the second day in a row. The tech-heavy Nasdaq composite and the Dow Jones Industrial Average also set new highs.

More companies reported solid earnings, including manufacturer Mohawk Industries and genetic testing company Illumina. Bond yields rose, giving banks a boost. Bumble shares continued to climb after the company made a big splash in its stock market debut the day before.

Optimism that Washington will come through on trillions of dollars of more aid for the economy and encouraging company earnings reports have helped stocks grind higher this month, along with hopes that the coronavirus vaccine rollout will set the stage for stronger economic growth in the second half of this year.

“The one thing that continues to be supportive for the market is just the fact that the risk-reward in the U.S. equity market still seems to be the best game in town,” said J.J. Kinahan, chief strategist with TD Ameritrade.

The S&P 500 rose 18.45 points to 3,934.83, while the Dow gained 27.70 points, or 0.1% to 31,458.40. The Nasdaq added 69.70 points, or 0.5%, to 14,095.47.

Traders also bid up shares in smaller companies. The Russell 2000 index rose 4.04 points, or 0.2%, to 2,289.36.

Despite a week of mostly minor gains and losses for the broader market, the S&P 500 notched its second straight weekly gain.

Investors are hoping for a new round of U.S. government aid as the economic recovery falters. The latest U.S. government report on jobless claims reaffirmed that employment remains a weak spot in the economy, even as vaccine distribution ramps up in the hopes of eventually ending the pandemic. The University of Michigan survey of consumer sentiment came in well below expectations as well, a sign that consumers are wary to spend in the face of economic uncertainty.

Investors do not expect the market to move substantially higher in the near term until there’s more clarity on the future of government stimulus and the direction of the U.S. economy. Democrats have decided to use a legislative process that does not require Republican support to pass the $1.9 trillion package.

“We’re sort of awaiting catalysts,” said Jeffrey Kleintop, chief global investment strategist at Charles Schwab. “The market is still of the opinion that there will be a vaccine-led, broad economic recovery in the second half of this year.”

A majority of companies have now reported their latest round of earnings and the results have been surprisingly good. Roughly 75% of companies in the S&P 500 have released results, showing overall growth of 2.8%, according to FactSet. That’s a sharp reversal from the 13% contraction analysts had forecast in late September.

Mohawk Industries shares climbed 6% after the company posted stronger-than-expected quarterly earnings. Genetic analytics company Illumina jumped 11.9% for the biggest gains in the S&P 500 following its encouraging earnings report.

Bumble shares rose a further 7.3%, extending big first-day gains Thursday on the company’s initial public offering.

Banks made some of the strongest gains as bond yields rose, which allow them to charge more lucrative interest on loans. The yield on the 10-year Treasury rose to 1.20% from 1.16% late Thursday. Wells Fargo gained 2.5%.

Most Asian markets were closed to mark the Lunar New Year and European markets closed higher.

U.S. stock and bond markets are closed Monday for Washington’s Birthday.

 

[bigdog]

NYSE will be closed Monday, February 15 for Washington's Birthday

ASX futures pointing higher​

It looks set to be a positive start to the week for the Australian share market. According to the latest SPI futures, the ASX 200 is expected to open the day 37 points or 0.55% higher this morning. This follows a positive finish to the week on Wall Street. On Friday night the Dow Jones rose 0.1%, the S&P 500 climbed 0.5%, and the Nasdaq index also rose 0.5%.

 

[bigdog]

Shanghai and Hong Kong were closed for the Lunar New Year. U.S. markets remained closed Monday for Washington’s Birthday.

World stocks rally, bringing Japanese market to 30-year high

World shares started the week off with a rally, as Japan’s Nikkei 225 index closed above 30,000 for the first time since August 1990.

European markets closed sharply higher on Monday, following an advance in Asia. Shanghai and Hong Kong were closed for the Lunar New Year. U.S. markets remained closed Monday for Washington’s Birthday.

Optimism that the U.S. government will come through on trillions of dollars of more aid for the economy and encouraging company earnings reports have helped stocks grind higher this month, along with hopes that the coronavirus vaccine rollout will set the stage for stronger economic growth in the second half of this year.

Democrats have decided to use a legislative process that does not require Republican support to pass the $1.9 trillion package proposed by President Joe Biden.

“Markets remain target fixated on the Biden stimulus and vaccine rollouts as the magic panacea for the world’s pandemic ills,” Jeffrey Halley of Oanda said in a commentary. That has translated into higher stock prices, with the world awash with stimulus funds seeking returns in a world where interest rates are around zero percent, he said.

Germany’s DAX gained 0.4% to 14,109.48 while the CAC40 in Paris rose 1.5% to 5,786.25. Britain’s FTSE 100 surged 2.5% to 6,756.11. U.S. futures also rose, with the contract for the S&P 500 up 0.5%. The future for the Dow industrials rose 0.6%.

The strong buying in Tokyo was driven by news that the Japanese economy grew at a nearly 13% annual pace in the last quarter, and by strong corporate earnings reports. It was the second straight quarter of growth after a downturn drastically worsened by the impact of the pandemic.

The recovery should put the economy on track to recover to pre-pandemic levels by next year, helped by a recovery in demand for exports in the U.S. and other major trading partners, Marcel Thieliant of Capital Economies said in a report.

Japan recently re-imposed a state of emergency in Tokyo and several other prefectures to battle a resurgence of outbreaks. But sustained corporate investment and government spending are expected to help offset the impact on travel, restaurants and other sectors most affected.

“And while most economists expect a renewed contraction this quarter due to the second state of emergency, we think that output will be broadly flat in Q1 and rise more strongly this year than almost anyone anticipates,” Thieliant said.

The Nikkei 225 closed up 1.9% at 30,084.15. It was its highest level since August 1990, just as Japan’s bubble economy was beginning to implode after peaking at nearly 39,000 in 1989.

ASX futures pointing higher​

The Australian share market looks set to climb again on Tuesday following a positive night of trade in Europe. According to the latest SPI futures, the ASX 200 is expected to open the day 24 points or 0.35% higher today. Wall Street was closed for President’s Day but Europe was open and saw the DAX rise 0.4% and the FTSE jump 2.5%.

NYSE was closed for President’s Day

Rest of World

https://apnews.com/article/financia...rus-pandemic-8d898cf4ef6e7053b3804249389213e9

World stocks rally, bringing Japanese market to 30-year high

By ELAINE KURTENBACH

World shares started the week off with a rally, as Japan’s Nikkei 225 index closed above 30,000 for the first time since August 1990.

European markets closed sharply higher on Monday, following an advance in Asia. Shanghai and Hong Kong were closed for the Lunar New Year. U.S. markets remained closed Monday for Washington’s Birthday.

Optimism that the U.S. government will come through on trillions of dollars of more aid for the economy and encouraging company earnings reports have helped stocks grind higher this month, along with hopes that the coronavirus vaccine rollout will set the stage for stronger economic growth in the second half of this year.

Democrats have decided to use a legislative process that does not require Republican support to pass the $1.9 trillion package proposed by President Joe Biden.

“Markets remain target fixated on the Biden stimulus and vaccine rollouts as the magic panacea for the world’s pandemic ills,” Jeffrey Halley of Oanda said in a commentary. That has translated into higher stock prices, with the world awash with stimulus funds seeking returns in a world where interest rates are around zero percent, he said.

Germany’s DAX gained 0.4% to 14,109.48 while the CAC40 in Paris rose 1.5% to 5,786.25. Britain’s FTSE 100 surged 2.5% to 6,756.11. U.S. futures also rose, with the contract for the S&P 500 up 0.5%. The future for the Dow industrials rose 0.6%.

The strong buying in Tokyo was driven by news that the Japanese economy grew at a nearly 13% annual pace in the last quarter, and by strong corporate earnings reports. It was the second straight quarter of growth after a downturn drastically worsened by the impact of the pandemic.

The recovery should put the economy on track to recover to pre-pandemic levels by next year, helped by a recovery in demand for exports in the U.S. and other major trading partners, Marcel Thieliant of Capital Economies said in a report.

Japan recently re-imposed a state of emergency in Tokyo and several other prefectures to battle a resurgence of outbreaks. But sustained corporate investment and government spending are expected to help offset the impact on travel, restaurants and other sectors most affected.

“And while most economists expect a renewed contraction this quarter due to the second state of emergency, we think that output will be broadly flat in Q1 and rise more strongly this year than almost anyone anticipates,” Thieliant said.

The Nikkei 225 closed up 1.9% at 30,084.15. It was its highest level since August 1990, just as Japan’s bubble economy was beginning to implode after peaking at nearly 39,000 in 1989.

Other Asian markets also saw strong gains. The Kospi in Seoul rose 1.5% to 3,147.00 and India’s Sensex climbed 1.1% to 54, 102.41. In Australia, the S&P/ASX 200 rose 0.9% to 6,868.90.

Thailand’s SET benchmark index gained 0.9% after the government forecast the economy will expand by 2.5%-3.5% this year after contracting 6.1% in 2020 as the government restricted international travel and imposed other limits on activities to combat the pandemic.

 

[bigdog]

Stocks end wobbly day mostly lower; natural gas prices surge

U.S. stock indexes closed mostly lower Tuesday as losses in health care and technology companies kept gains in energy and other sectors of the market in check.

Much of Asia remains closed in observance of the Lunar New Year

The S&P 500 ended down less than 0.1% after giving up a modest early gain. Energy companies that stand to benefit from record electricity prices due to the frigid cold impacting much of the country surged. Marathon Oil and Apache Corp. were among the biggest gainers.

Bond yields, which have been ticking higher on expectations of rising inflation, rose sharply. The yield on the 10-year Treasury rose to 1.29%, the highest level in a year. Bank stocks made broad gains on the higher yields, which allow them to charge more lucrative interest rates on loans. Utilities and real estate stocks, bond proxies that can look less attractive when bond yields rise, were among the biggest decliners.

Despite the mostly tentative day of trading, the Dow Jones Industrial Average inched higher, enough to set another all-time high.

“You have a continuation of some of the trends that we’ve had recently and the kind of bifurcation within the market where the things that are benefiting from higher yields are continuing to do well, and that speaks to an improving economy and more inflation,” said Willie Delwiche, investment strategist at All Star Charts.

The S&P 500 slipped 2.24 points to 3,932.59. The Dow rose 64.35 points, or 0.2%, to 31,522.75. The Nasdaq Composite index fell 47.97 points, or 0.3%, to 14,047.50. The three indexes closed at record highs on Friday. U.S. markets were closed Monday for a holiday.

Stocks of smaller companies fared worse than the broader market. The Russell 2000 index lost 16.47 points, or 0.7%, to 2,272.89.

Optimism that Washington will come through on trillions of dollars of more aid for the economy and encouraging company earnings reports have helped stocks grind higher this month, along with hopes that the coronavirus vaccine rollout will set the stage for stronger economic growth in the second half of this year.

With the second impeachment trial over, investors believe Congress can now make progress toward passing President Biden’s $1.9 trillion stimulus plan. The package would include one-time payments to Americans plus additional assistance to industries, states and jurisdictions impacted by the pandemic.

ASX futures pointing lower​

The Australian share market looks to have run out of steam. According to the latest SPI futures, the ASX 200 is expected to open the day 20 points or 0.3% lower this morning.

This follows a mixed start to the week on Wall Street following the President’s Day holiday. On closing the Dow Jones is up 0.20%, the S&P 500 was down 0.06%, and the Nasdaq is down 0.34%.

https://apnews.com/article/financia...andemic-asia-99ec626084b8a2b0e7f95758b3052bd2

Stocks end wobbly day mostly lower; natural gas prices surge

By DAMIAN J. TROISE and ALEX VEIGA

U.S. stock indexes closed mostly lower Tuesday as losses in health care and technology companies kept gains in energy and other sectors of the market in check.

The S&P 500 ended down less than 0.1% after giving up a modest early gain. Energy companies that stand to benefit from record electricity prices due to the frigid cold impacting much of the country surged. Marathon Oil and Apache Corp. were among the biggest gainers.

Bond yields, which have been ticking higher on expectations of rising inflation, rose sharply. The yield on the 10-year Treasury rose to 1.29%, the highest level in a year. Bank stocks made broad gains on the higher yields, which allow them to charge more lucrative interest rates on loans. Utilities and real estate stocks, bond proxies that can look less attractive when bond yields rise, were among the biggest decliners.

Despite the mostly tentative day of trading, the Dow Jones Industrial Average inched higher, enough to set another all-time high.

“You have a continuation of some of the trends that we’ve had recently and the kind of bifurcation within the market where the things that are benefiting from higher yields are continuing to do well, and that speaks to an improving economy and more inflation,” said Willie Delwiche, investment strategist at All Star Charts.

The S&P 500 slipped 2.24 points to 3,932.59. The Dow rose 64.35 points, or 0.2%, to 31,522.75. The Nasdaq Composite index fell 47.97 points, or 0.3%, to 14,047.50. The three indexes closed at record highs on Friday. U.S. markets were closed Monday for a holiday.

Stocks of smaller companies fared worse than the broader market. The Russell 2000 index lost 16.47 points, or 0.7%, to 2,272.89.

Optimism that Washington will come through on trillions of dollars of more aid for the economy and encouraging company earnings reports have helped stocks grind higher this month, along with hopes that the coronavirus vaccine rollout will set the stage for stronger economic growth in the second half of this year.

With the second impeachment trial over, investors believe Congress can now make progress toward passing President Biden’s $1.9 trillion stimulus plan. The package would include one-time payments to Americans plus additional assistance to industries, states and jurisdictions impacted by the pandemic.

Vaccine distribution is improving and, separately, new case counts are decreasing. That’s injecting more confidence into the prospects for a recovery while a new round of stimulus could help give people and businesses more money and improve consumer spending.

That long view of the economy, which has been bolstered by mostly upbeat economic data and corporate earnings, has been helping push bond yields higher, said Jason Pride, chief investment officer of private wealth at Glenmede.

“It’s reflecting that optimism,” he said. “Every ounce of information we get seems to confirm these story lines.”

Energy prices rose sharply Tuesday as record demand for heating across much of the frigid Midwest and Texas pushed electricity prices higher. The price of natural gas, which is the country’s primary way to produce quick “on-demand” electricity when needed, rose 7.5% to its highest level since November, when hurricane season impacted some natural gas production along the Gulf Coast.

Heating oil prices rose 2.4%, much less than natural gas, since it’s primarily used in the Northeast in older boilers to heat homes. The Northeast hasn’t seen unreasonable temperatures for this time of the year.

Cruise line operators surged for the biggest gains in the S&P 500. Royal Caribbean led the way, climbing 9.7%, and Carnival jumped 9.1%.

The rise in bond yields helped lift shares in financial companies. Bank of America rose 2.7% and JPMorgan Chase rose 2.4%

Traders in cryptocurrencies pushed up the price of Bitcoin above $50,000 for the first time Tuesday. It was up 0.1% to $48,793 in late-afternoon trading, according to the tracking site CoinDesk.

Much of Asia remains closed in observance of the Lunar New Year and European markets closed mostly lower Tuesday.

 

[bigdog]

Stocks end mostly lower on Wall Street, led by drops in tech

Stocks mostly pulled back from recent highs Wednesday, weighed down by a slide in technology companies.

The S&P 500 slipped less than 0.1% after giving up an early gain, while the tech-heavy Nasdaq composite gave back 0.6%. Small-company stocks also fell.

The Dow Jones Industrial Average inched higher, good enough for its second straight all-time high. The modest pickup was due in large large part to gains in Verizon Communications and Chevron, which climbed after Warren Buffett’s Berkshire Hathaway said it made major new investments in them in the second half of last year.

Treasury yields, which have been climbing recently on expectations of higher inflation, mostly fell. The yield on the 10-year Treasury note held near its highest level in a year.

Energy prices rose again, adding to a sharp increase the day before due to the frigid weather that’s impacted much of the U.S.

The S&P 500 dipped 1.26 points to 3,931.33. The benchmark index’s winners and losers were roughly evenly split. The Dow added 90.27 points, or 0.3%, to 31,613.02. The Nasdaq fell 82 points to 13,965.49. The Russell 2000 index of smaller companies lost 16.78 points, or 0.7%, to 2,256.11.

Optimism that Washington will come through on trillions of dollars of more aid for the economy and encouraging company earnings reports have helped stocks grind higher this month, along with hopes that the coronavirus vaccine rollout will set the stage for stronger economic growth in the second half of this year.

The Commerce Department said Wednesday that U.S. retail sales soared a seasonally adjusted 5.3% in January from the month before. It was the biggest increase since June and much larger than the 1% rise Wall Street analysts had expected. Meanwhile, the Labor Department said U.S. wholesale prices surged by a record 1.3% in January, led by big gains in health care and energy prices. The bigger-than-expected increase was the largest one-month gain on records that go back to 2009.

The data appeared to reinforce the perception that the economy is seeing more evidence of rising inflation even before the Biden administration has delivered on its proposed $1.9 trillion stimulus package and other spending aimed to get the economy back on solid footing.

The market’s pullback may reflect concern among some on Wall Street that the infusion of more government aid and spending on infrastructure, for example, will “help underpin the economy, but it will also foster quicker growth and perhaps a quicker uptick in inflation,” said Quincy Krosby, chief market strategist at Prudential Financial.

That, she added, could eventually force the Federal Reserve to rethink its current policy of keeping interest rates at ultra-low levels.

ASX futures pointing lower​

It looks set to be another tough day for the Australian share market on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 23 points or 0.35% lower this morning.

This follows another mixed night on Wall Street, which on closing sees the Dow Jones up 0.29%, the S&P 500 down 0.03%, and the Nasdaq down 0.58%.

https://apnews.com/article/financia...andemic-asia-6a53e087161a291e2fe06a0764183293

Stocks end mostly lower on Wall Street, led by drops in tech

By DAMIAN J. TROISE and ALEX VEIGA

Stocks mostly pulled back from recent highs Wednesday, weighed down by a slide in technology companies.

The S&P 500 slipped less than 0.1% after giving up an early gain, while the tech-heavy Nasdaq composite gave back 0.6%. Small-company stocks also fell.

The Dow Jones Industrial Average inched higher, good enough for its second straight all-time high. The modest pickup was due in large large part to gains in Verizon Communications and Chevron, which climbed after Warren Buffett’s Berkshire Hathaway said it made major new investments in them in the second half of last year.

Treasury yields, which have been climbing recently on expectations of higher inflation, mostly fell. The yield on the 10-year Treasury note held near its highest level in a year.

Energy prices rose again, adding to a sharp increase the day before due to the frigid weather that’s impacted much of the U.S.

The S&P 500 dipped 1.26 points to 3,931.33. The benchmark index’s winners and losers were roughly evenly split. The Dow added 90.27 points, or 0.3%, to 31,613.02. The Nasdaq fell 82 points to 13,965.49. The Russell 2000 index of smaller companies lost 16.78 points, or 0.7%, to 2,256.11.

Optimism that Washington will come through on trillions of dollars of more aid for the economy and encouraging company earnings reports have helped stocks grind higher this month, along with hopes that the coronavirus vaccine rollout will set the stage for stronger economic growth in the second half of this year.

The Commerce Department said Wednesday that U.S. retail sales soared a seasonally adjusted 5.3% in January from the month before. It was the biggest increase since June and much larger than the 1% rise Wall Street analysts had expected. Meanwhile, the Labor Department said U.S. wholesale prices surged by a record 1.3% in January, led by big gains in health care and energy prices. The bigger-than-expected increase was the largest one-month gain on records that go back to 2009.

The data appeared to reinforce the perception that the economy is seeing more evidence of rising inflation even before the Biden administration has delivered on its proposed $1.9 trillion stimulus package and other spending aimed to get the economy back on solid footing.

The market’s pullback may reflect concern among some on Wall Street that the infusion of more government aid and spending on infrastructure, for example, will “help underpin the economy, but it will also foster quicker growth and perhaps a quicker uptick in inflation,” said Quincy Krosby, chief market strategist at Prudential Financial.

That, she added, could eventually force the Federal Reserve to rethink its current policy of keeping interest rates at ultra-low levels.

The minutes from the Fed’s January policy meeting, released Wednesday afternoon, showed the central bank believed that the ongoing coronavirus pandemic is still posing considerable risks to the economy. The minutes also reflect Fed officials’ widespread support for keeping interest rates low in order to boost the economy and help millions of Americans regain lost jobs.

Fed Chairman Jerome Powell has cautioned that inflation could accelerate for a time in coming months as the country opens up. But he and many private economists believe this will be only a temporary rise and not a sign that inflation is getting out of control.

The yield on the 10-year Treasury slipped to 1.28% from 1.29% late Tuesday, near its highest level in a year. The rise in bond yields has raised some concerns about the potential for higher inflation, but has also been a sign that the prospect for economic growth remains good.

“I don’t know when inflation is going to increase but the bond market is starting to tell you that the economy is accelerating,” said Andrew Slimmon, portfolio manager at Morgan Stanley Investment Management. “As we’re coming out of COVID-19, as people get vaccinated, consumer confidence is growing at a time when we have a tremendous amount of cash on the sidelines.”

Last month’s jump in retail sales was largely driven by the $600 stimulus checks that went out to most Americans in late December and early January. The data shows that recession-hit Americans are eager to spend cash on necessities, and aren’t saving the funds — which is the goal of stimulus checks.

It potentially means that additional stimulus, likely in the form of $1,400 checks in the $1.9 trillion stimulus plan, will likely provide a necessary boost to the economy.

“We’re keeping this economy humming despite the last several weeks, which have been really challenging,” said Katie Nixon of Northern Trust. “That’s notable, it’s a clue to what will happen if we get an additional stimulus package.”

 

[bigdog]

Stocks Fall as Investors Fret Over Jobless Claims, Inflation​

Stocks posted modest losses on Thursday as investors had little reason to buy stocks with discouraging economic data and a steady rise in bond yields, which has started to raise concerns about inflation.​

Stocks posted modest losses on Thursday as investors had little reason to buy stocks with discouraging economic data and a steady rise in bond yields, which has start to raise concerns about inflation.

The S&P 500 index dropped 17.36 points, or 0.4%, to 3,913.97. It was the third straight decline for the index. The Dow Jones Industrial Average lost 119.68 points, or 0.4%, closing at 31,493.34 and the technology-heavy Nasdaq Composite fell 100.14 points, or 0.7%, to 13,865.36. The Russell 2000 of small companies fell 1.7%, a significant drop for that index.

Energy prices declined for a second day, as the frigid temperatures that impacted Texas and much of the Midwest moved east. Natural gas prices closed down 4.3%. Energy prices have been volatile the past week as record demand for natural gas and other fossil fuels to warm homes has caused electricity prices to skyrocket. Natural gas is typically used as an “on-demand” fuel source to cover increased electrical needs.

Bond yields continue to climb, as murmurs of inflation have started among investors and as the economy continues to climb out of the hole that was created by the pandemic. The yield on the 10-year U.S. Treasury note was at 1.29%, nearly double where it was last fall. It's now trading at levels seen before the March 2020 pandemic shutdowns.

The climb in bond yields has multiple impacts on the market. When bonds pay higher yields, they are more attractive to a broader group of investors, who tend to move money out of low-performing or low dividend-paying stocks and into the steady income of bonds. It's a push-pull phenomenon that's existed in the market for decades. With bonds no longer paying out rock-bottom yields, the inverse relationship between stocks and bonds could be reasserting itself.

Secondly, the bond market tends to be a good predictor for the economy. The steady rise in yields means investors see the economy getting better but it also suggests they're concerned about inflation. President Joe Biden's plan to spend $1.9 trillion on stimulus could be somewhat inflationary, although in a recession, that is not necessarily a bad thing.

Optimism that rollouts of coronavirus vaccines will set the stage for stronger economic growth in the second half of this year has been pushing the stock market higher. But expectations of a post-pandemic recovery also have resurrected concerns over inflation that could prompt governments and central banks to pull back on stimulus down the road in several months or even a year.

The momentum of the stock market, particularly on Thursday, danced closely with the bond market. When bond yields tipped lower in the afternoon, the stock market recovered more than half of its losses from earlier in the day.

“No argument in the market is more important (right now) and more balanced than whether or not we are due for a large spike in inflation,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, in a note to clients.

Energy prices are part of that inflation picture as well. While both natural gas and crude oil prices were down Thursday, energy prices are at levels not seen since before the pandemic. Benchmark U.S. crude oil closed above $60 a barrel, its highest level in a year

ASX 200 expected to tumble​

The Australian share market looks set to end the week on a disappointing note. According to the latest SPI futures, the ASX 200 is expected to open the day 34 points or 0.5% lower this morning.

On closing sees the Dow Jones down 0.38%, the S&P 500 down 0.44%, and the Nasdaq down 0.72%.

https://www.usnews.com/news/busines...s-mostly-lower-after-mixed-day-on-wall-street

Stocks Fall as Investors Fret Over Jobless Claims, Inflation​

Stocks posted modest losses on Thursday as investors had little reason to buy stocks with discouraging economic data and a steady rise in bond yields, which has started to raise concerns about inflation.​

By Associated Press, Wire Service Content Feb. 18, 2021, at 4:33 p.m.

By KEN SWEET, AP Business Writer

Stocks posted modest losses on Thursday as investors had little reason to buy stocks with discouraging economic data and a steady rise in bond yields, which has start to raise concerns about inflation.

The S&P 500 index dropped 17.36 points, or 0.4%, to 3,913.97. It was the third straight decline for the index. The Dow Jones Industrial Average lost 119.68 points, or 0.4%, closing at 31,493.34 and the technology-heavy Nasdaq Composite fell 100.14 points, or 0.7%, to 13,865.36. The Russell 2000 of small companies fell 1.7%, a significant drop for that index.

Energy prices declined for a second day, as the frigid temperatures that impacted Texas and much of the Midwest moved east. Natural gas prices closed down 4.3%. Energy prices have been volatile the past week as record demand for natural gas and other fossil fuels to warm homes has caused electricity prices to skyrocket. Natural gas is typically used as an “on-demand” fuel source to cover increased electrical needs.

Bond yields continue to climb, as murmurs of inflation have started among investors and as the economy continues to climb out of the hole that was created by the pandemic. The yield on the 10-year U.S. Treasury note was at 1.29%, nearly double where it was last fall. It's now trading at levels seen before the March 2020 pandemic shutdowns.

The climb in bond yields has multiple impacts on the market. When bonds pay higher yields, they are more attractive to a broader group of investors, who tend to move money out of low-performing or low dividend-paying stocks and into the steady income of bonds. It's a push-pull phenomenon that's existed in the market for decades. With bonds no longer paying out rock-bottom yields, the inverse relationship between stocks and bonds could be reasserting itself.

Secondly, the bond market tends to be a good predictor for the economy. The steady rise in yields means investors see the economy getting better but it also suggests they're concerned about inflation. President Joe Biden's plan to spend $1.9 trillion on stimulus could be somewhat inflationary, although in a recession, that is not necessarily a bad thing.

Optimism that rollouts of coronavirus vaccines will set the stage for stronger economic growth in the second half of this year has been pushing the stock market higher. But expectations of a post-pandemic recovery also have resurrected concerns over inflation that could prompt governments and central banks to pull back on stimulus down the road in several months or even a year.

The momentum of the stock market, particularly on Thursday, danced closely with the bond market. When bond yields tipped lower in the afternoon, the stock market recovered more than half of its losses from earlier in the day.

“No argument in the market is more important (right now) and more balanced than whether or not we are due for a large spike in inflation,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, in a note to clients.

Energy prices are part of that inflation picture as well. While both natural gas and crude oil prices were down Thursday, energy prices are at levels not seen since before the pandemic. Benchmark U.S. crude oil closed above $60 a barrel, its highest level in a year.

A sign of how painful the U.S. economy remains for many Americans, and the argument for why additional stimulus is needed, came in this week's jobless claims report. The government reported that applications for jobless benefits rose last week to 861,000. That’s the latest indication that layoffs remain high as coronavirus shutdowns keep many businesses closed.

Minutes from the Federal Reserve’s January policy meeting released Wednesday showed central bank officials believed the pandemic still poses considerable risks to the economy and still support keeping interest rates low in order to boost the economy and help millions of Americans regain lost jobs.

Fed Chairman Jerome Powell has cautioned that inflation could accelerate for a time in coming months as the country opens up. But he and many private economists believe this will be only a temporary rise and not a sign that inflation is getting out of control.

Shares of Dow component Walmart lost 6.5% after reporting weaker results than analysts were expecting.

Shares of GameStop fell 11.4% on Thursday. Congress is conducting a hearing on the recent volatility of these companies, which have been in a tug-of-war between Wall Street institutional investors betting against the companies and the online retail investors who pushed shares higher.

 

[bigdog]

Stocks end a wobbly day with mixed results; yields rise

U.S. stock indexes ended a choppy day of trading little changed Friday, though the S&P 500 finished with its first weekly loss in three weeks.

The benchmark index slipped 0.2%, extending its losing streak to a fourth day, after wavering between small gains and losses for most of the day. A majority of the companies in the S&P 500 rose, but losses in health care, communication services and other stocks outweighed gains by banks and industrial companies, among others.

The Dow Jones Industrial Average and Nasdaq composite closed essentially flat, while another strong showing by smaller companies pushed the Russell 200 index to a 2.2% gain.

This week’s market pullback, the first downbeat week this month, comes as investors remain focused on the future of the COVID-stricken economy and the potential for more stimulus to fix it. They’ve also begun taking into account the likelihood of higher inflation as the economy continues to climb out of its pandemic-induced recession.

Expectations of higher inflation helped drive bond yields sharply higher this week. The yield on the 10-year Treasury note, which is used to set interest rates on mortgages and other consumer loans, rose to 1.34% Friday, though it’s still low by historical standards.

“It’s a gradual release of pent-up demand that we’re beginning to acknowledge is happening through the U.S. economy,” said Bill Northey, senior investment director at U.S. Bank Wealth Management. “And it’s occurring against a backdrop of rising interest rates and inflation.”

The S&P 500 fell 7.26 points to 3,906.71. The index hit an all-time high just a week ago. The Dow closed essentially unchanged, with a gain of 0.98 points, or less than 0.1%, at 31,494.32. The Nasdaq composite added 9.11 points, or 0.1%, to 13,874.46.

The Russell 2000 small-caps index climbed 48.30 points to 2,266.69. The rally in smaller companies is a sign that investors were anticipating more economic growth.

Wall Street continues to look to Washington for direction, as Democrats move forward with their $1.9 trillion stimulus plan to combat the coronavirus. Incremental moves were made this week, with the Biden administration signaling it would drop its call for a $15-an-hour minimum wage in this stimulus plan in order to get support from moderate Democratic senators.

The stimulus plan would include $1,400 checks to most Americans, additional payments for children, and billions of dollars in aid to state and local governments as well as additional aid to businesses impacted by the pandemic.

Much of the recent economic data has shown the U.S. economy could benefit from additional stimulus. Wall Street got a weekly jobless claims report Thursday that showed 861,000 Americans filed for unemployment last week, a rise from the previous week and higher than Wall Street had forecast. The Federal Reserve, in the minutes from its January meeting, also laid out the case for why additional stimulus would be necessary and not cause the economy to overheat.

Of particular note is investors’ concerns about inflation. The yield of the 10-year note has risen 0.14 percentage points this week alone, a significant rise in such a short period of time. Rising bond yields can indicate that investors are hopeful for more economic growth in the future, but it can also signal potential inflation coming down the road.

https://apnews.com/article/joe-bide...yo-hong-kong-3a9a3a121c98d0ac46250e4f57c4cecf

Stocks end a wobbly day with mixed results; yields rise

By ALEX VEIGA

U.S. stock indexes ended a choppy day of trading little changed Friday, though the S&P 500 finished with its first weekly loss in three weeks.

The benchmark index slipped 0.2%, extending its losing streak to a fourth day, after wavering between small gains and losses for most of the day. A majority of the companies in the S&P 500 rose, but losses in health care, communication services and other stocks outweighed gains by banks and industrial companies, among others.

The Dow Jones Industrial Average and Nasdaq composite closed essentially flat, while another strong showing by smaller companies pushed the Russell 200 index to a 2.2% gain.

This week’s market pullback, the first downbeat week this month, comes as investors remain focused on the future of the COVID-stricken economy and the potential for more stimulus to fix it. They’ve also begun taking into account the likelihood of higher inflation as the economy continues to climb out of its pandemic-induced recession.

Expectations of higher inflation helped drive bond yields sharply higher this week. The yield on the 10-year Treasury note, which is used to set interest rates on mortgages and other consumer loans, rose to 1.34% Friday, though it’s still low by historical standards.

“It’s a gradual release of pent-up demand that we’re beginning to acknowledge is happening through the U.S. economy,” said Bill Northey, senior investment director at U.S. Bank Wealth Management. “And it’s occurring against a backdrop of rising interest rates and inflation.”

The S&P 500 fell 7.26 points to 3,906.71. The index hit an all-time high just a week ago. The Dow closed essentially unchanged, with a gain of 0.98 points, or less than 0.1%, at 31,494.32. The Nasdaq composite added 9.11 points, or 0.1%, to 13,874.46.

The Russell 2000 small-caps index climbed 48.30 points to 2,266.69. The rally in smaller companies is a sign that investors were anticipating more economic growth.

Wall Street continues to look to Washington for direction, as Democrats move forward with their $1.9 trillion stimulus plan to combat the coronavirus. Incremental moves were made this week, with the Biden administration signaling it would drop its call for a $15-an-hour minimum wage in this stimulus plan in order to get support from moderate Democratic senators.

The stimulus plan would include $1,400 checks to most Americans, additional payments for children, and billions of dollars in aid to state and local governments as well as additional aid to businesses impacted by the pandemic.

Much of the recent economic data has shown the U.S. economy could benefit from additional stimulus. Wall Street got a weekly jobless claims report Thursday that showed 861,000 Americans filed for unemployment last week, a rise from the previous week and higher than Wall Street had forecast. The Federal Reserve, in the minutes from its January meeting, also laid out the case for why additional stimulus would be necessary and not cause the economy to overheat.

Of particular note is investors’ concerns about inflation. The yield of the 10-year note has risen 0.14 percentage points this week alone, a significant rise in such a short period of time. Rising bond yields can indicate that investors are hopeful for more economic growth in the future, but it can also signal potential inflation coming down the road.

In other economic news, sales of previously occupied U.S. homes rose again last month, a sign that the housing market’s strong momentum from 2020 may be carrying over into this year.

Existing U.S. home sales rose 0.6% in January from the previous month to a seasonally-adjusted rate of 6.69 million annualized units, the National Association of Realtors said Friday. Sales rose 23.7% from a year earlier. It was the strongest sales pace since October. Homebuilder shares were broadly higher. Beazer Homes USA led the sector, climbing 4.3%.

 

[bigdog]

ASX futures pointing lower​

The Australian share market looks set to start the week in the red. According to the latest SPI futures, the ASX 200 is expected to open the week 11 points or 0.15% lower this morning. This follows a mixed end to the week on Wall Street on Friday night. That saw the Dow Jones trade flat, the S&P 500 fall 0.2%, and the Nasdaq index up slightly.

 

[bigdog]

Weakness in Big Tech stocks leaves Wall Street mostly lower

A sell-off in technology companies led stocks on Wall Street mostly lower Monday, adding to the market’s losses from last week.

The S&P 500 fell 0.8%, extending its losses to a fifth straight day. The benchmark index was just about evenly split between winners and losers, but technology stocks and companies that rely on consumer spending bore the brunt of the selling. Apple fell 3%, Microsoft dropped 2.7%, Tesla slumped 8.5% and Amazon lost 2.1%.

The tech-heavy Nasdaq composite slid 2.5%, while the Dow Jones Industrial Average eked out a tiny gain, as solid gains by companies like Disney, Exxon Mobil and Chevron helped offset the drag by some of the Big Tech companies.

Stocks began shedding some of their gains last week after a strong start to February as rising interest rates and the potential for inflation down the road dampened some of Wall Street’s enthusiasm, though the major stock indexes remain near their all-time highs.

“Equity investors are finally paying attention to the bond market,” said Mike Zigmont, director of trading and research at Harvest Volatility Management. “With yields climbing, there are a lot of jitters in the equity space.”

The S&P 500 fell 30.21 points to 3,876.50. The Dow gained 27.37 points, or 0.1%, to 31,521.69. The Nasdaq lost 341.41 points to 13,533.05. The Russell 2000 index of smaller companies gave up 15.62 points, or 0.7%, to 2,251.07.

Investors remain focused on the future of global economies badly hit by COVID-19 and the potential for more stimulus to fix them. The U.S. House of Representatives is likely to vote on President Joe Biden’s proposed stimulus package by the end of the week. It would include $1,400 checks to most Americans, additional payments for children, and billions of dollars in aid to state and local governments as well as additional aid to businesses impacted by the pandemic.

But the large amount of stimulus being pumped into the economy has given some investors pause as worries of inflation have reentered the market after being nonexistent for more than a decade. Yields on U.S. Treasury bonds and notes have risen in the last several weeks as investors have predicted more inflation would come with the economic recovery.

“There are some risks out there,” said Gary Schlossberg, global strategist at Wells Fargo Investment Institute. “The issue is are we just normalizing back to where we were before the pandemic or are we talking about a sea change.”

The yield on the 10-year Treasury rose to 1.36% from 1.34% late Friday and has been rising steadily throughout the year. The higher yields have helped lift banks, which rely on higher yields to charge more lucrative interest rates on loans. Morgan Stanley rose 1.8%.

Technology stocks accounted for the biggest share of the selling. The sector, which powered much of the market’s gains in 2020, posted its fifth straight loss. That pullback helped drag down the Nasdaq, while the Dow, which isn’t as heavily weighted with tech stocks, rose.

Tech stocks have enjoyed big gains throughout the pandemic, as investors bet that consumers spending more time at home would increasingly rely on mobile devices, PCs, video streaming and other technology products and services. But as the number of new coronavirus cases has declined recently after a sharp spike late last year and more people get vaccinated, investors are beginning to snap up stocks in areas of the market that are expected to do better in a post-pandemic economy.

ASX 200 expected to rise​

The Australian share market looks set to push higher on Tuesday despite a mixed start to the week on international markets. According to the latest SPI futures, the ASX 200 is expected to open the day 18 points or 0.3% higher this morning.

On closing Wall Street, the Dow Jones was up 0.09%, the S&P 500 is down 0.77%, and the Nasdaq index has sunk 2.46%.

https://apnews.com/article/joe-bide...rus-pandemic-d0703f5733c147cf666dd03f5d12a1ec

Weakness in Big Tech stocks leaves Wall Street mostly lower

By DAMIAN J. TROISE and ALEX VEIGA

A sell-off in technology companies led stocks on Wall Street mostly lower Monday, adding to the market’s losses from last week.

The S&P 500 fell 0.8%, extending its losses to a fifth straight day. The benchmark index was just about evenly split between winners and losers, but technology stocks and companies that rely on consumer spending bore the brunt of the selling. Apple fell 3%, Microsoft dropped 2.7%, Tesla slumped 8.5% and Amazon lost 2.1%.

The tech-heavy Nasdaq composite slid 2.5%, while the Dow Jones Industrial Average eked out a tiny gain, as solid gains by companies like Disney, Exxon Mobil and Chevron helped offset the drag by some of the Big Tech companies.

Stocks began shedding some of their gains last week after a strong start to February as rising interest rates and the potential for inflation down the road dampened some of Wall Street’s enthusiasm, though the major stock indexes remain near their all-time highs.

“Equity investors are finally paying attention to the bond market,” said Mike Zigmont, director of trading and research at Harvest Volatility Management. “With yields climbing, there are a lot of jitters in the equity space.”

The S&P 500 fell 30.21 points to 3,876.50. The Dow gained 27.37 points, or 0.1%, to 31,521.69. The Nasdaq lost 341.41 points to 13,533.05. The Russell 2000 index of smaller companies gave up 15.62 points, or 0.7%, to 2,251.07.

Investors remain focused on the future of global economies badly hit by COVID-19 and the potential for more stimulus to fix them. The U.S. House of Representatives is likely to vote on President Joe Biden’s proposed stimulus package by the end of the week. It would include $1,400 checks to most Americans, additional payments for children, and billions of dollars in aid to state and local governments as well as additional aid to businesses impacted by the pandemic.

But the large amount of stimulus being pumped into the economy has given some investors pause as worries of inflation have reentered the market after being nonexistent for more than a decade. Yields on U.S. Treasury bonds and notes have risen in the last several weeks as investors have predicted more inflation would come with the economic recovery.

“There are some risks out there,” said Gary Schlossberg, global strategist at Wells Fargo Investment Institute. “The issue is are we just normalizing back to where we were before the pandemic or are we talking about a sea change.”

The yield on the 10-year Treasury rose to 1.36% from 1.34% late Friday and has been rising steadily throughout the year. The higher yields have helped lift banks, which rely on higher yields to charge more lucrative interest rates on loans. Morgan Stanley rose 1.8%.

Technology stocks accounted for the biggest share of the selling. The sector, which powered much of the market’s gains in 2020, posted its fifth straight loss. That pullback helped drag down the Nasdaq, while the Dow, which isn’t as heavily weighted with tech stocks, rose.

Tech stocks have enjoyed big gains throughout the pandemic, as investors bet that consumers spending more time at home would increasingly rely on mobile devices, PCs, video streaming and other technology products and services. But as the number of new coronavirus cases has declined recently after a sharp spike late last year and more people get vaccinated, investors are beginning to snap up stocks in areas of the market that are expected to do better in a post-pandemic economy.

“They parked in technology as a temporary place for their capital while the pandemic raged, and now they’re looking to go back to their pre-COVID asset allocation,” Zigmont said.

Airlines, which have been battered by the virus pandemic, rose after Deutsche Bank upgraded its view on the sector and the potential for recovery as COVID-19 cases fall and vaccination rates increase. American Airlines jumped 9.4%, while Delta rose 4.5% and United Airlines gained 3.5%.

Traders continued to bid up shares in energy companies, which are getting a boost from higher energy prices. The sector have risen four out of the last five days. Exxon Mobil rose 3.7%.

The price of crude U.S. crude oil rose 3.8% to $61.49 a barrel. It’s now up 27% for the year.

Brent crude, the international standard, rose 3.7% to $65.24 a barrel, and is up 26% this year. Goldman Sachs predicted in a research note that the price of Brent crude would reach $70 by the second quarter.

The price of Bitcoin, which moved above $50,000 for the first time early last week, dropped 6.2% to $53,765 Monday, according to the currency brokerage Coinbase. The slide followed a tweet late Friday by Elon Musk in which the Tesla CEO said the price of Bitcoin and another cryptocurrency, Etherium, “seem high.” Earlier this month, Tesla announced that it was buying $1.5 billion in Bitcoin as part of a new investment strategy, and that it would soon be accepting Bitcoin as payment for its cars.

 

[bigdog]

Late gains reverse most of an early slide on stock market

A late-afternoon burst of buying on Wall Street helped reverse most of a stock market sell-off Tuesday, nudging the S&P 500 to its first gain after a five-day losing streak.

The benchmark index eked out a 0.1% gain after having been down more than 1.8% earlier. The Nasdaq lost 0.5% as technology stocks fell for a sixth straight day. The tech-heavy index had been down nearly 4%. The Dow Jones Industrial Average, which is less exposed to tech stocks than the two other indexes, managed to rise 0.1%.

Facebook, Disney, Netflix and other communications stocks helped drive the market’s comeback. Financial and energy companies also helped lift the market, outweighing losses in technology and other sectors. Bond yields held near their highest level in a year.

Still, the main reason the market didn’t rack up bigger losses is the wave of selling in Big Tech stocks nearly reversed entirely as traders seized the opportunity to pickup shares in Apple, Microsoft, Amazon and other big gainers over the past year at a more attractive price. Tesla, which joined the S&P 500 at the end of last year, ended down 2.2% after being down as much as 13.4%.

The S&P 500 index rose 4.87 points to 3,881.37. The Dow gained 15.66 points to 31,537.35. The Nasdaq lost 67.85 points to 13,465.20. The indexes were at all-time highs less than two weeks ago.

Smaller company stocks fell more than the broader market. The Russell 2000 small-cap index slid 19.76 points, or 0.9%, to 2,231.21. The index, the biggest gainer so far this year, clawed back from a 3.6% slide.

Since the pandemic began, investors consistently pushed the prices of Big Tech stocks to stratospheric heights, betting that quarantined consumers would do most of their shopping online and spend more on devices and services for entertainment.

The bet mostly paid off, as big tech companies reported big profits last year. But the pandemic may be reaching its end stages, with millions of vaccines being administered each week in the U.S. and across the globe now. It may cause consumers to return to their pre-pandemic habits.

By late afternoon, the tech sell-off nearly reversed itself. Apple slipped 0.1%, Microsoft fell 0.5%, and Amazon gained 0.4%. As traders turned to buying Tesla, rather than selling the stock, that also helped limit the S&P 500′s losses. The electric car maker is the second-most heavily weighted stock in the index’s consumer discretionary sector after Amazon.

Investors remain increasingly focused on a big tick up in bond yields and how it affects stock valuations. The yield on the 10-year Treasury note rose to 1.36%, continuing its quick climb up over the last few weeks.

ASX 200 expected to fall​

The Australian share market looks set to give back some of yesterday’s gains on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open 33 points or 0.5% lower this morning.

On Wall Street closing , the Dow Jones was up 0.05%, the S&P 500 up 0.13%, and the Nasdaq index down 0.5%.

https://apnews.com/article/technolo...yo-hong-kong-3594290cced3417dc8cde6871cad4583

Late gains reverse most of an early slide on stock market

By DAMIAN J. TROISE and ALEX VEIGA

A late-afternoon burst of buying on Wall Street helped reverse most of a stock market sell-off Tuesday, nudging the S&P 500 to its first gain after a five-day losing streak.

The benchmark index eked out a 0.1% gain after having been down more than 1.8% earlier. The Nasdaq lost 0.5% as technology stocks fell for a sixth straight day. The tech-heavy index had been down nearly 4%. The Dow Jones Industrial Average, which is less exposed to tech stocks than the two other indexes, managed to rise 0.1%.

Facebook, Disney, Netflix and other communications stocks helped drive the market’s comeback. Financial and energy companies also helped lift the market, outweighing losses in technology and other sectors. Bond yields held near their highest level in a year.

Still, the main reason the market didn’t rack up bigger losses is the wave of selling in Big Tech stocks nearly reversed entirely as traders seized the opportunity to pickup shares in Apple, Microsoft, Amazon and other big gainers over the past year at a more attractive price. Tesla, which joined the S&P 500 at the end of last year, ended down 2.2% after being down as much as 13.4%.

The S&P 500 index rose 4.87 points to 3,881.37. The Dow gained 15.66 points to 31,537.35. The Nasdaq lost 67.85 points to 13,465.20. The indexes were at all-time highs less than two weeks ago.

Smaller company stocks fell more than the broader market. The Russell 2000 small-cap index slid 19.76 points, or 0.9%, to 2,231.21. The index, the biggest gainer so far this year, clawed back from a 3.6% slide.

Since the pandemic began, investors consistently pushed the prices of Big Tech stocks to stratospheric heights, betting that quarantined consumers would do most of their shopping online and spend more on devices and services for entertainment.

The bet mostly paid off, as big tech companies reported big profits last year. But the pandemic may be reaching its end stages, with millions of vaccines being administered each week in the U.S. and across the globe now. It may cause consumers to return to their pre-pandemic habits.

By late afternoon, the tech sell-off nearly reversed itself. Apple slipped 0.1%, Microsoft fell 0.5%, and Amazon gained 0.4%. As traders turned to buying Tesla, rather than selling the stock, that also helped limit the S&P 500′s losses. The electric car maker is the second-most heavily weighted stock in the index’s consumer discretionary sector after Amazon.

Investors remain increasingly focused on a big tick up in bond yields and how it affects stock valuations. The yield on the 10-year Treasury note rose to 1.36%, continuing its quick climb up over the last few weeks.

When bond yields rise, stock prices tend to be negatively impacted because investors turn an increasingly larger portion of their money toward the higher, steadier stream of income that bonds provide.

“If you have a 10-year (Treasury yield) which returns something, then all of a sudden you get this situation where investors may want more of a risk-free asset and rotate out of equities,” said Sylvia Jablonski, chief investment officer at Defiance ETFs.

While eventually bond yields impact big dividend-paying stocks like consumer staples, utilities and real estate, it does tend to impact stocks that have big valuations like technology stocks much earlier. Tech stocks tend to have higher-than-average price-to-earnings ratios, which values a stock on how much the company earns in in profits each year versus its stock price. The S&P 500 index is currently trading at a price-to-earnings ratio of 32, historically high by any measurement, while the price-to-earnings ratio of a company like Amazon is north of 75.

Jablonski expects the sell-off in technology stocks, which have fallen five days straight, will be short-lived, though she adds that a further increase in the 10-year Treasury yield could be “a different story.”

“The 10-year was sort of the news of the week that took some of the fire out of equities, but I wouldn’t be surprised that investors looking for entry points are going to get back in at these levels,” she said. “Stocks still have a future that looks to me to be a lot brighter than the value investors are going to get if they convert to bonds.”

More broadly, investors remain focused on the future of global economies badly hit by COVID-19 and the potential for more stimulus to fix them. The U.S. House of Representatives is likely to vote on President Joe Biden’s proposed stimulus package by the end of the week. It would include $1,400 checks to most Americans, additional payments for children, and billions of dollars in aid to state and local governments as well as additional aid to businesses impacted by the pandemic.

The large amount of stimulus being pumped into the economy has given some investors pause, reviving worries about inflation that have been nearly nonexistent for more than a decade. That has been a factor in pushing bond yields higher.

“Overall, the view is this rise in yields is just a reflection of confidence in economy and the vaccine rollout,” said Leslie Falconio, senior strategist at UBS Global Wealth Management.

“Right now, this rise in yields, given the fact that financial conditions are still loose, is not a red flag,” she said. “As long as growth supports the rise in interest rates, then that’s not a concern.”

Federal Reserve Chair Jay Powell told Congress Tuesday the Fed didn’t see a need to alter its policy of keeping interest rates ultra-low, noting that the economic recovery “remains uneven and far from complete.”

 

[bigdog]

Gains for bank stocks help lead major US indexes higher

Stocks shook off a weak start and closed broadly higher Wednesday, nudging the Dow Jones Industrial Average to another all-time high.

The S&P 500 rose 1.1% after having been down 0.6% in the early going. Gains in financial, technology and industrial stocks powered the comeback. Utilities fell.

U.S. Treasury yields continued to head higher. Bank stocks benefited from the latest upward move in yields, which will allow them to charge higher rates on mortgages and other loans, increasing their profits. JPMorgan Chase rose 1.8% and Bank of America added 2.4%.

The S&P 500′s technology sector accounted for a big share of the rally after declining for six straight days.

“(Stocks) are back in rally mode after spending the past few days trending sideways, digesting early year gains,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “On balance, we still think the glass is half full and (stocks) trend higher as we look to the end of the year.”

The S&P 500 index rose 44.06 points to 3,925.43. The Dow climbed 424.51 points, or 1.4% to 31,961.86, an all-time high. The Nasdaq Composite added 132.77 points, or 1%, to 13,597.97.

The Russell 2000, which tracks smaller companies, continued to outpace the rest of the market, as it has since the beginning of the year. That’s a sign investors are feeling more confident about economic growth. The index rose 53.07 points, or 2.4%, to 2,284.38.

Investors are still anticipating another round of stimulus to help boost the economy. The U.S. House of Representatives is likely to vote on President Biden’s proposed stimulus package by the end of the week. It would include $1,400 checks to most Americans.

The afternoon rebound followed Federal Reserve Chair Jerome Powell’s appearance before Congress Wednesday. Powell said that the central bank will not begin raising interest rates until it believes it has reached its goals on maximum employment and inflation.

As he did before the Senate Banking Committee on Tuesday, Powell told the House Financial Services Committee that the Fed was in no hurry to raise benchmark short-term interest rates or to begin trimming its $120 billion in monthly bond purchases used to put downward pressure on longer-term rates.

Powell said the Fed did not see any indication that inflation could race out of control. While price increases might accelerate in coming months, Powell said those increases were expected to be temporary and not a sign of long-run inflation threats. Inflation has been nonexistent in the U.S. for the better part of a decade.

ASX 200 expected to rebound​

It looks set to be a good day for the Australian share market after a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 54 points or 0.8% higher this morning.

On closing in the United States, the Dow Jones was up 1.35%, the S&P 500 up 1.14%, and the Nasdaq index has risen 0.99%.

https://apnews.com/article/financia...cial-markets-e099520810a0d25f5a614007652b9815

Gains for bank stocks help lead major US indexes higher

By DAMIAN J. TROISE and ALEX VEIGA

Stocks shook off a weak start and closed broadly higher Wednesday, nudging the Dow Jones Industrial Average to another all-time high.

The S&P 500 rose 1.1% after having been down 0.6% in the early going. Gains in financial, technology and industrial stocks powered the comeback. Utilities fell.

U.S. Treasury yields continued to head higher. Bank stocks benefited from the latest upward move in yields, which will allow them to charge higher rates on mortgages and other loans, increasing their profits. JPMorgan Chase rose 1.8% and Bank of America added 2.4%.

The S&P 500′s technology sector accounted for a big share of the rally after declining for six straight days.

“(Stocks) are back in rally mode after spending the past few days trending sideways, digesting early year gains,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “On balance, we still think the glass is half full and (stocks) trend higher as we look to the end of the year.”

The S&P 500 index rose 44.06 points to 3,925.43. The Dow climbed 424.51 points, or 1.4% to 31,961.86, an all-time high. The Nasdaq Composite added 132.77 points, or 1%, to 13,597.97.

The Russell 2000, which tracks smaller companies, continued to outpace the rest of the market, as it has since the beginning of the year. That’s a sign investors are feeling more confident about economic growth. The index rose 53.07 points, or 2.4%, to 2,284.38.

Investors are still anticipating another round of stimulus to help boost the economy. The U.S. House of Representatives is likely to vote on President Biden’s proposed stimulus package by the end of the week. It would include $1,400 checks to most Americans.

The afternoon rebound followed Federal Reserve Chair Jerome Powell’s appearance before Congress Wednesday. Powell said that the central bank will not begin raising interest rates until it believes it has reached its goals on maximum employment and inflation.

As he did before the Senate Banking Committee on Tuesday, Powell told the House Financial Services Committee that the Fed was in no hurry to raise benchmark short-term interest rates or to begin trimming its $120 billion in monthly bond purchases used to put downward pressure on longer-term rates.

Powell said the Fed did not see any indication that inflation could race out of control. While price increases might accelerate in coming months, Powell said those increases were expected to be temporary and not a sign of long-run inflation threats. Inflation has been nonexistent in the U.S. for the better part of a decade.

Treasury yields continued to climb Wednesday, adding to a multi-week increase in rates that are used as benchmarks for many kinds of loans. The yield on the 10-year Treasury note rose to 1.38%, the highest level in just over a year.

The rise in bond yields has several implications for both the stock market and overall economy. Higher yields make stocks with lofty valuations less attractive. Those tend to be technology companies, which are priced typically for growth and not for a steady return of dividends like mature companies like makers of consumer staples, utilities and real estate.

Despite the tech in rally stocks overall, some Big Tech companies fell Wednesday. Apple slid 0.4% and Amazon dropped 1.1%. Those and other Big Tech companies rocketed in 2020 as investors bet that the pandemic would cause Americans to shift shopping habits and buy gadgets to keep themselves occupied in pandemic quarantines.

Boeing jumped 8.1%, the biggest gainer in the Dow Jones Industrial Average, after shedding 2.5% over the prior two days in the wake of an engine malfunction over the weekend in a 777 aircraft operated by United Airlines.

The plane, which took off from Denver and was bound for Honolulu, was forced to make an emergency landing Saturday after a fan blade broke and pieces of the engine’s casing fell on neighborhoods. Federal aviation regulators ordered the grounding of planes with the type of engine on the plane.

GameStop doubled in the last hour of trading in another burst of volatility. The video game retailer’s stock shot up to $91.71. It was the stock’s best day since January 27, when it more than doubled and closed at $347.51. Shares in AMC Entertainment jumped 18.1%. Both stocks have been hyped in recent weeks by people on social media forums at the expense of hedge funds that were betting these stocks would lose value.