NYSE Dow Jones finished today at:

[bigdog]

Stocks close mixed as regulators seek pause in J&J vaccine

A choppy day of trading on Wall Street ended with indexes mixed Tuesday as a drop in bond yields hurt bank stocks but helped big technology companies.

The S&P 500 rose 0.3% after briefly slipping into the red in the early going. The modest gain nudged the benchmark index to an all-time high. Technology stocks and companies that rely on consumer spending helped lift the broad market index. The gains were tempered by a pullback in banks, industrial companies and other stocks.

Johnson & Johnson fell 1.3% after U.S. regulators recommended a pause in using its single-dose COVID-19 vaccine to investigate reports of possibly dangerous blood clots. Moderna, which also makes a COVID-19 vaccine, climbed 7.4%.

Worries about the potential loss of a vaccine option also pulled down companies that are counting on pandemic restrictions easing, though the losses eased by the end of the day. American Airlines slipped 1.5% and Delta Air Lines fell 1.1%.

The broader market has been mostly notching gains this month, reflecting cautious optimism among investors that the economy will strengthen and corporate profits will improve as the distribution of COVID-19 vaccines paves the way for more restrictions on businesses to be lifted. A pause in the rollout of the Johnson & Johnson vaccine isn’t going to derail that, analysts said.

“The response today has been very muted and isolated,” said, Scott Knapp, chief market strategist at CUNA Mutual Group. “Markets don’t expect lockdowns. The recovery may be delayed, but not a return to pandemic conditions.”

The market’s initial sell-off on the J&J news was “a bit of an overreaction,” said Jay Hatfield, CEO of Infrastructure Capital Management.

“We had a dress rehearsal for this last week because there was a huge disruption to the J&J supply and nobody seemed to care,” Hatfield said. “Clearly, the recovery is not dependent on J&J significantly.”

The S&P 500 rose 13.60 points to 4,141.59. The Dow Jones Industrial Average fell 68.13 points, or 0.2%, to 33,677.27. The Nasdaq gained 146.10 points, or 1.1%, to 13,996.10. The divergence between the Dow and Nasdaq was largely due to the fact the Dow has more bank stocks and also includes Johnson & Johnson, while the Nasdaq is heavily weighted with technology companies.

Small company stocks also lost ground. The Russell 2000 index of smaller companies gave up 4.86 points, or 0.2%, to 2,228.92.

The yield on the 10-year U.S. Treasury fell to to 1.62% from 1.67% the day before. JPMorgan Chase fell 1.2% and Wells Fargo lost 2.4%.

Investors will get a chance to look over the books of the big banks starting Wednesday, when JPMorgan Chase and Wells Fargo report their quarterly results. Bank of America and Citigroup report their results on Thursday.

ASX 200 expected to rise​

The Australian share market looks set to push higher today. According to the latest SPI futures, the ASX 200 is expected to open the day 18 points or 0.25% higher. This follows a largely positive night of trade on Wall Street. Although the Dow Jones dropped 0.2%, the S&P 500 rose 0.33% and the Nasdaq stormed 1.05% higher.

https://apnews.com/article/technolo...rus-pandemic-956d1bf9c5eb1ecfcd2abc963933d1f4

Stocks close mixed as regulators seek pause in J&J vaccine

By DAMIAN J. TROISE and ALEX VEIGA

A choppy day of trading on Wall Street ended with indexes mixed Tuesday as a drop in bond yields hurt bank stocks but helped big technology companies.

The S&P 500 rose 0.3% after briefly slipping into the red in the early going. The modest gain nudged the benchmark index to an all-time high. Technology stocks and companies that rely on consumer spending helped lift the broad market index. The gains were tempered by a pullback in banks, industrial companies and other stocks.

Johnson & Johnson fell 1.3% after U.S. regulators recommended a pause in using its single-dose COVID-19 vaccine to investigate reports of possibly dangerous blood clots. Moderna, which also makes a COVID-19 vaccine, climbed 7.4%.

Worries about the potential loss of a vaccine option also pulled down companies that are counting on pandemic restrictions easing, though the losses eased by the end of the day. American Airlines slipped 1.5% and Delta Air Lines fell 1.1%.

The broader market has been mostly notching gains this month, reflecting cautious optimism among investors that the economy will strengthen and corporate profits will improve as the distribution of COVID-19 vaccines paves the way for more restrictions on businesses to be lifted. A pause in the rollout of the Johnson & Johnson vaccine isn’t going to derail that, analysts said.

“The response today has been very muted and isolated,” said, Scott Knapp, chief market strategist at CUNA Mutual Group. “Markets don’t expect lockdowns. The recovery may be delayed, but not a return to pandemic conditions.”

The market’s initial sell-off on the J&J news was “a bit of an overreaction,” said Jay Hatfield, CEO of Infrastructure Capital Management.

“We had a dress rehearsal for this last week because there was a huge disruption to the J&J supply and nobody seemed to care,” Hatfield said. “Clearly, the recovery is not dependent on J&J significantly.”

The S&P 500 rose 13.60 points to 4,141.59. The Dow Jones Industrial Average fell 68.13 points, or 0.2%, to 33,677.27. The Nasdaq gained 146.10 points, or 1.1%, to 13,996.10. The divergence between the Dow and Nasdaq was largely due to the fact the Dow has more bank stocks and also includes Johnson & Johnson, while the Nasdaq is heavily weighted with technology companies.

Small company stocks also lost ground. The Russell 2000 index of smaller companies gave up 4.86 points, or 0.2%, to 2,228.92.

The yield on the 10-year U.S. Treasury fell to to 1.62% from 1.67% the day before. JPMorgan Chase fell 1.2% and Wells Fargo lost 2.4%.

Investors will get a chance to look over the books of the big banks starting Wednesday, when JPMorgan Chase and Wells Fargo report their quarterly results. Bank of America and Citigroup report their results on Thursday.

Big technology stocks, which have fallen when bond yields have risen, closed solidly higher. Apple rose 2.4% and Microsoft gained 1%. Technology stocks rose sharply in 2020 as investors bet that stay-at-home Americans would shift even more to online buying and electronic entertainment to keep themselves busy in the pandemic.

Investors had little reaction to a report that showed U.S. consumer prices increased a sharp 0.6% in March, the most since 2012, while inflation over the past year rose a sizable 2.6%. The big gains are expected to be a temporary blip and not a sign that long dormant inflation pressures were emerging. The index rose 0.4% in February.

The Fed has been trying to reassure markets that any increase in inflation would be temporary as the economy recovers.

“It looks like the market is starting to internalize that point of view,” Knapp said.

Traders in cryptocurrencies pushed up the price of Bitcoin above $63,000 for the first time Tuesday. It rose 5.3% to $63,179.98, according to the tracking site CoinDesk. The rally comes as cryptocurrency exchange and digital wallet operator Coinbase is set to make its stock market debut Wednesday.

 

[bigdog]

Most US stocks rise, indexes end mixed as earnings kick off

NEW YORK (AP) — Most U.S. stocks rose on Wednesday, but indexes petered out to a mixed finish as momentum weakened following an encouraging start to what’s expected to be a thunderous earnings reporting season.

The S&P 500 fell 16.93 points, or 0.4%, to 4,124.66, a day after returning to an all-time high. It flipped between small gains and losses several times through the day.

The Dow Jones Industrial Average rose 53.62 points, or 0.2%, to 33,730.89 after rising above its record set last week earlier in the day. The Nasdaq composite lost an early gain to drop 138.26, or 1%, to 13,857.84.

The market was held back by drops for several heavyweight tech stocks, including Apple and Amazon, but the majority of stocks within the S&P 500 rose. Smaller companies also rallied amid growing optimism as COVID-19 vaccines roll out and businesses reopen. The Russell 2000 index of small-cap stocks climbed 18.79, or 0.8%, to 2,247.72.

Shares of Coinbase Global, an exchange for bitcoin and other digital currencies, surged in their market debut, perhaps a defining moment for cryptocurrencies as they get embraced more by the mainstream.

Its stock opened at $381, after the Nasdaq earlier gave it a $250 reference price. It quickly rallied toward $430 before closing at $328.28. At that price, investors say the company is worth more than $85 billion, more valuable than Nasdaq or Intercontinental Exchange, the owner of the New York Stock Exchange.

Interest in and prices for cryptocurrencies have been exploding recently as more companies and investors get involved. Coinbase turned a profit last year after more than reversing a $30.4 million loss from the year before, and it expects growth to continue because it sees the cryptoeconomy producing “a more fair, accessible, efficient, and transparent financial system for the internet age.”

Energy stocks were also among the market’s strongest on expectations that a resurgent economy will burn more petroleum products. The International Energy Agency raised its forecast for oil demand this year, up by 230,000 barrels per day to 96.7 million. A separate U.S. government report also showed that the amount of oil supplies in inventories fell sharply last week.

That helped benchmark U.S. crude oil rise $2.97 to settle at $63.15 per barrel. Brent crude, the international standard, climbed $2.91 to $66.58 a barrel. Within the S&P 500, Diamondback Energy was one of the top-performing stocks with a gain of 6%. Occidental Petroleum rose 5.2%.

Much of the market’s focus in coming weeks will be on earnings season, as companies line up to report how much profit they made during the first three months of 2021. Expectations are very high, and this may be the best quarter of earnings growth for S&P 500 companies in more than a decade.

Big banks are traditionally among the first companies to report, and Goldman Sachs, JPMorgan Chase and Wells Fargo all unveiled earnings for the first quarter that blew past analysts’ forecasts. Much of the surge was due to expectations for a rapidly improving economy, which allowed banks to free up reserves held in case loans went bad, as well as strong trading revenue.

The better-than-expected results didn’t give all the bank stocks a uniform pop, though. Goldman Sachs rallied 2.3%, but JPMorgan Chase fell 1.9%. Wells Fargo jumped 5.5%, but only after swerving from an early-morning loss to a gain

ASX 200 futures pointing lower

The Australian share market looks set to give back a lot of yesterday’s gain this morning. According to the latest SPI futures, the ASX 200 is poised to open the day 40 points or 0.6% lower.

This follows a disappointing night of trade on Wall Street, which saw the Dow Jones rise 0.16%, but the S&P 500 drop 0.41% and the Nasdaq tumble 0.99% lower.

https://apnews.com/article/financia...ong-shanghai-fd8e7228eb8b89e1559db0d6f66d1bdf

Most US stocks rise, indexes end mixed as earnings kick off

By STAN CHOE and DAMIAN J. TROISE

NEW YORK (AP) — Most U.S. stocks rose on Wednesday, but indexes petered out to a mixed finish as momentum weakened following an encouraging start to what’s expected to be a thunderous earnings reporting season.

The S&P 500 fell 16.93 points, or 0.4%, to 4,124.66, a day after returning to an all-time high. It flipped between small gains and losses several times through the day.

The Dow Jones Industrial Average rose 53.62 points, or 0.2%, to 33,730.89 after rising above its record set last week earlier in the day. The Nasdaq composite lost an early gain to drop 138.26, or 1%, to 13,857.84.

The market was held back by drops for several heavyweight tech stocks, including Apple and Amazon, but the majority of stocks within the S&P 500 rose. Smaller companies also rallied amid growing optimism as COVID-19 vaccines roll out and businesses reopen. The Russell 2000 index of small-cap stocks climbed 18.79, or 0.8%, to 2,247.72.

Shares of Coinbase Global, an exchange for bitcoin and other digital currencies, surged in their market debut, perhaps a defining moment for cryptocurrencies as they get embraced more by the mainstream.

Its stock opened at $381, after the Nasdaq earlier gave it a $250 reference price. It quickly rallied toward $430 before closing at $328.28. At that price, investors say the company is worth more than $85 billion, more valuable than Nasdaq or Intercontinental Exchange, the owner of the New York Stock Exchange.

Interest in and prices for cryptocurrencies have been exploding recently as more companies and investors get involved. Coinbase turned a profit last year after more than reversing a $30.4 million loss from the year before, and it expects growth to continue because it sees the cryptoeconomy producing “a more fair, accessible, efficient, and transparent financial system for the internet age.”

Energy stocks were also among the market’s strongest on expectations that a resurgent economy will burn more petroleum products. The International Energy Agency raised its forecast for oil demand this year, up by 230,000 barrels per day to 96.7 million. A separate U.S. government report also showed that the amount of oil supplies in inventories fell sharply last week.

That helped benchmark U.S. crude oil rise $2.97 to settle at $63.15 per barrel. Brent crude, the international standard, climbed $2.91 to $66.58 a barrel. Within the S&P 500, Diamondback Energy was one of the top-performing stocks with a gain of 6%. Occidental Petroleum rose 5.2%.

Much of the market’s focus in coming weeks will be on earnings season, as companies line up to report how much profit they made during the first three months of 2021. Expectations are very high, and this may be the best quarter of earnings growth for S&P 500 companies in more than a decade.

Big banks are traditionally among the first companies to report, and Goldman Sachs, JPMorgan Chase and Wells Fargo all unveiled earnings for the first quarter that blew past analysts’ forecasts. Much of the surge was due to expectations for a rapidly improving economy, which allowed banks to free up reserves held in case loans went bad, as well as strong trading revenue.

The better-than-expected results didn’t give all the bank stocks a uniform pop, though. Goldman Sachs rallied 2.3%, but JPMorgan Chase fell 1.9%. Wells Fargo jumped 5.5%, but only after swerving from an early-morning loss to a gain.

Stocks in recent earnings seasons have been failing to get as big a bounce as they usually do after reporting better-than-expected results. Analysts say it’s likely a result of how much stock prices have already rallied on expectations for the strong growth. The S&P 500 has soared roughly 85% since hitting a bottom in March 2020, even as the pandemic crunched profits for companies through last year.

Wednesday’s encouraging start to earnings season dovetails with several reports showing the economy is kicking into a higher gear as more widespread COVID-19 vaccinations and tremendous financial support from the U.S. government and Federal Reserve work through the system.

The expectations for a stronger economy, though, are also leading to worries about higher inflation. If inflation were to climb and sustain itself, it could send bond prices tumbling, erode profits for companies and trigger volatility across markets worldwide.

A report on Tuesday said that U.S. consumer prices rose more in March than economists expected, but investors largely took it in stride.

“The market can handle a higher interest rate level if it’s coupled with an improving growth backdrop,” said Jack Janasiewicz, portfolio strategist at Natixis Investment Managers.

Low rates engineered by the Federal Reserve have been one of the central reasons for the stock market’s surge over the last year.

The yield on the 10-year Treasury rose to 1.63% from 1.62%.

Fed Chair Jerome Powell said again on Wednesday that the central bank will hold off on raising interest rates until the job market has fully healed, inflation has reached 2% and indications show inflation is on track to stay moderately above 2% for some time. The Fed also released its latest “Beige Book” survey, which showed businesses around the country feeling more optimistic about the economy.

 

[bigdog]

Dow crests 34,000 on more proof that economy is recovering

Wall Street notched more milestones Thursday, as a broad market rally pushed the S&P 500 to an all-time high and the Dow Jones Industrial Average crossed above the 34,000 mark for the first time.

The S&P 500 rose 1.1%, with technology, health care and communication stocks accounting for much of the upward moves. Only energy and financial companies closed lower. Bond yields fell.

The rally came as investors welcomed a suite of encouraging economic reports showing how hungry Americans are to spend again, how fewer workers are losing their jobs and how much fatter corporate profits are getting.

Expectations are very high on Wall Street that the economy — and thus corporate profits — are in the midst of exploding out of the cavern created by the pandemic, thanks to COVID-19 vaccinations and massive support from the U.S. government and Federal Reserve. New data on retail sales and jobless claims Thursday helped bolster the view that the economic recovery is accelerating.

“Another day, another record,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. “The stock market continues to validate the optimistic forecasts from last year, which predicted a strong economy that was driven by consumers emerging from their homes, emboldened by vaccinations or by a belief that the worst of COVID was behind us.”

The S&P 500 rose 45.76 points to 4,170.42, surpassing its previous record high of 4,141.59 set on Tuesday. The Dow climbed 305.10 points, or 0.9%, to 34,035.99. The Dow also set a record high on Friday.

The Nasdaq composite added 180.92 points, or 1.3%, to 14,038.76, while the Russell 2000 index of smaller companies picked up 9.35 points, or 0.4%, to 2,257.07.

The rally got off to a swift start Thursday as traders weighed the latest batch of economic data and corporate earnings reports.

One report showed that U.S. retail sales jumped 9.8% in March from February, blowing past economists’ forecasts for 5.5% growth. Much of the surge was due to $1,400 payments from the U.S. government’s latest economic rescue effort hitting households’ bank accounts. Economists said it shows how primed people are to spend as the economy reopens and conditions brighten. That’s huge for an economy that’s made up mostly of consumer spending.

Another report gave an encouraging read on the job market, showing 576,000 people applied for unemployment benefits last week. That’s well below the 700,000 that economists had forecast and down from 769,000 the prior week. It’s also the lowest the number has been since the pandemic.

Adding to the optimism, more big U.S. companies reported even healthier profits for the first three months of 2021 than analysts had forecast. Expectations are already high for this earnings reporting season, which unofficially got underway on Wednesday and could result in the strongest growth in more than a decade.

“You’ve got various pockets of the market now starting to show a broadening recovery,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

BlackRock, PepsiCo and UnitedHealth Group all reported bigger profits for the first quarter than analysts expected. BlackRock rose 2.1%, PepsiCo added 0.1% and UnitedHealth climbed 3.8%.

Even Delta Air Lines, which reported weaker results for the start of 2021 than expected, highlighted areas of optimism. It said it could return to making profits by late summer if the recovery it’s seeing in air travel continues. Its shares fell 2.8%.

With growth expectations so high, some investors are worried about the possibility that inflation could swing upward. If it were to sustain itself, high inflation could send bond prices tumbling, hurt corporate profit margins and trigger volatility across markets worldwide.

ASX 200 expected to rise​

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 13 points or 0.2% higher this morning. This follows a very strong night of trade on Wall Street, which saw the Dow Jones rise 0.9%, the S&P 500 climb 1.1%, and the Nasdaq storm 1.3% higher. Exceptional US economic data sent shares hurtling higher.

https://apnews.com/article/financia...ong-shanghai-7e3083b4ec4c50140f5066b6d42ae553

Dow crests 34,000 on more proof that economy is recovering

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA

Wall Street notched more milestones Thursday, as a broad market rally pushed the S&P 500 to an all-time high and the Dow Jones Industrial Average crossed above the 34,000 mark for the first time.

The S&P 500 rose 1.1%, with technology, health care and communication stocks accounting for much of the upward moves. Only energy and financial companies closed lower. Bond yields fell.

The rally came as investors welcomed a suite of encouraging economic reports showing how hungry Americans are to spend again, how fewer workers are losing their jobs and how much fatter corporate profits are getting.

Expectations are very high on Wall Street that the economy — and thus corporate profits — are in the midst of exploding out of the cavern created by the pandemic, thanks to COVID-19 vaccinations and massive support from the U.S. government and Federal Reserve. New data on retail sales and jobless claims Thursday helped bolster the view that the economic recovery is accelerating.

“Another day, another record,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. “The stock market continues to validate the optimistic forecasts from last year, which predicted a strong economy that was driven by consumers emerging from their homes, emboldened by vaccinations or by a belief that the worst of COVID was behind us.”

The S&P 500 rose 45.76 points to 4,170.42, surpassing its previous record high of 4,141.59 set on Tuesday. The Dow climbed 305.10 points, or 0.9%, to 34,035.99. The Dow also set a record high on Friday.

The Nasdaq composite added 180.92 points, or 1.3%, to 14,038.76, while the Russell 2000 index of smaller companies picked up 9.35 points, or 0.4%, to 2,257.07.

The rally got off to a swift start Thursday as traders weighed the latest batch of economic data and corporate earnings reports.

One report showed that U.S. retail sales jumped 9.8% in March from February, blowing past economists’ forecasts for 5.5% growth. Much of the surge was due to $1,400 payments from the U.S. government’s latest economic rescue effort hitting households’ bank accounts. Economists said it shows how primed people are to spend as the economy reopens and conditions brighten. That’s huge for an economy that’s made up mostly of consumer spending.

Another report gave an encouraging read on the job market, showing 576,000 people applied for unemployment benefits last week. That’s well below the 700,000 that economists had forecast and down from 769,000 the prior week. It’s also the lowest the number has been since the pandemic.

Adding to the optimism, more big U.S. companies reported even healthier profits for the first three months of 2021 than analysts had forecast. Expectations are already high for this earnings reporting season, which unofficially got underway on Wednesday and could result in the strongest growth in more than a decade.

“You’ve got various pockets of the market now starting to show a broadening recovery,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

BlackRock, PepsiCo and UnitedHealth Group all reported bigger profits for the first quarter than analysts expected. BlackRock rose 2.1%, PepsiCo added 0.1% and UnitedHealth climbed 3.8%.

Even Delta Air Lines, which reported weaker results for the start of 2021 than expected, highlighted areas of optimism. It said it could return to making profits by late summer if the recovery it’s seeing in air travel continues. Its shares fell 2.8%.

With growth expectations so high, some investors are worried about the possibility that inflation could swing upward. If it were to sustain itself, high inflation could send bond prices tumbling, hurt corporate profit margins and trigger volatility across markets worldwide.

The bond market remained notably calm following Thursday morning’s stronger-than-expected reports, and longer-term yields actually fell to the surprise of some analysts. The yield on the 10-year Treasury dropped to 1.55% from 1.63% late Wednesday. Earlier this month, it had gotten as high as 1.75%.

“That’s what’s really driving the enthusiasm in the market; not so much the economic data, but the fact that rates went down,” said Phil Guarco, global investment specialist at J.P. Morgan Private Bank.

The pullback in yields echoes what happened earlier this week, when a report on the Consumer Price Index came in higher than expected. It would have made sense if the worse-than-expected inflation report had caused investors to sell bonds and send yields higher, but they largely shrugged it off.

Analysts still expect bond yields to tick higher as the year goes on and the economy continues recovering, along with investors shifting money into sectors that will see a greater benefit from the recovery.

“When you’re thinking about GDP growth, it’s really hard to see why the 10-year shouldn’t be higher,” Samana said.

The surprising reaction may be a result of how unpredictable data can be as the pandemic and government efforts to counteract it distort everything. And, for now at least, the numbers seem to be pointing toward more strength.

The falling yields helped send financial stocks to some of the market’s sharpest losses, because lower long-term interest rates limit the profits banks make from lending. Bank of America fell 2.9%, and Citigroup slid 0.5%, for example, even though both had earlier in the day reported stronger profits for the first three months of 2021 than expected.

 

[bigdog]

ALL WORLD SHARE CHANGE INDEXES GREEN!!!

S&P 500 hits another record, marks 4th weekly gain in a row

Stocks added to their recent gains Friday, driving the S&P 500 and Dow Jones Industrial Average to new highs.

The S&P 500 rose 0.4%, led by gains in companies that rely directly on consumer spending, health care stocks and banks, which benefited from higher Treasury yields. The benchmark index notched its fourth straight weekly gain.

The gains were tempered by modest declines in technology stocks, which have been prone to pull back when bond yields move higher. Rising bond yields tend to make shares in technology companies that have had a strong runup over the past year look too expensive. Crude oil prices slipped, weighing down energy companies.

Bond yields rose broadly after falling earlier in the week. The yield of the 10-year Treasury note rose to 1.59% from 1.53% late Thursday. Still, bond yields are down from the highs they hit earlier in the month, when the 10-year note traded at a yield of 1.75%.

“There’s sort of a churning with regard to interest rates and in the market itself,” said Tom Martin, senior portfolio manager with Globalt Investments.

The S&P 500 rose 15.05 points to 4,185.47. The Dow gained 164.68 points, or 0.5% to 34,200.67. The S&P and Dow also hit all-time highs on Thursday. The technology-heavy Nasdaq inched up 13.58 points, or 0.1%, to 14,052.34 after recovering from an early slide.

The Russell 2000 index of smaller companies added 5.60 points, or 0.2%, to 2,262.67.

Stocks have rallied in recent weeks amid a string of encouraging reports on hiring, consumer confidence and spending that point to an accelerating U.S. economy. COVID-19 vaccinations and massive support from the U.S. government and Federal Reserve are fueling expectations for solid corporate profit growth as more businesses reopen after being forced to close or operate on a limited basis due to the pandemic.

The last round of stimulus from the government helped lift retail sales, and investors now have to weigh other proposals in Washington, which include investments in infrastructure and potential tax changes.

“Market participants are just trying to figure out, given the stimulus that’s already in the market, how do we handicap these next couple of rounds,” Martin said.

Investors also continue to be focused on the global economic recovery. China’s economy expanded at a sizzling annual pace of 18.3% in the first quarter of the year, the government reported Friday. The world’s second-largest economy contracted, as most of the world did, during the first months of the pandemic.

https://apnews.com/article/financia...cial-markets-4f867434e57e43df4b7d0f95be71473e

S&P 500 hits another record, marks 4th weekly gain in a row

By DAMIAN J. TROISE and ALEX VEIGA

Stocks added to their recent gains Friday, driving the S&P 500 and Dow Jones Industrial Average to new highs.

The S&P 500 rose 0.4%, led by gains in companies that rely directly on consumer spending, health care stocks and banks, which benefited from higher Treasury yields. The benchmark index notched its fourth straight weekly gain.

The gains were tempered by modest declines in technology stocks, which have been prone to pull back when bond yields move higher. Rising bond yields tend to make shares in technology companies that have had a strong runup over the past year look too expensive. Crude oil prices slipped, weighing down energy companies.

Bond yields rose broadly after falling earlier in the week. The yield of the 10-year Treasury note rose to 1.59% from 1.53% late Thursday. Still, bond yields are down from the highs they hit earlier in the month, when the 10-year note traded at a yield of 1.75%.

“There’s sort of a churning with regard to interest rates and in the market itself,” said Tom Martin, senior portfolio manager with Globalt Investments.

The S&P 500 rose 15.05 points to 4,185.47. The Dow gained 164.68 points, or 0.5% to 34,200.67. The S&P and Dow also hit all-time highs on Thursday. The technology-heavy Nasdaq inched up 13.58 points, or 0.1%, to 14,052.34 after recovering from an early slide.

The Russell 2000 index of smaller companies added 5.60 points, or 0.2%, to 2,262.67.

Stocks have rallied in recent weeks amid a string of encouraging reports on hiring, consumer confidence and spending that point to an accelerating U.S. economy. COVID-19 vaccinations and massive support from the U.S. government and Federal Reserve are fueling expectations for solid corporate profit growth as more businesses reopen after being forced to close or operate on a limited basis due to the pandemic.

The last round of stimulus from the government helped lift retail sales, and investors now have to weigh other proposals in Washington, which include investments in infrastructure and potential tax changes.

“Market participants are just trying to figure out, given the stimulus that’s already in the market, how do we handicap these next couple of rounds,” Martin said.

Investors also continue to be focused on the global economic recovery. China’s economy expanded at a sizzling annual pace of 18.3% in the first quarter of the year, the government reported Friday. The world’s second-largest economy contracted, as most of the world did, during the first months of the pandemic.

Homebuilder stocks moved broadly higher Friday after the Commerce Department said that U.S. home construction rebounded strongly in March to the fastest pace since 2006, as builders recovered from an unusually frigid February. The report also showed that applications for building permits, a good sign of future activity, increased by 2.7% to a seasonally adjusted annual rate of 1.77 million units. D.R. Horton rose 3.6% and KB Home gained 3.3%.

The rally in builder stocks helped power the S&P 500′s consumer discretionary sector’s gains, while Pfizer was among the big winners in the index’s health care sector, notching a 2.6% gain.

Technology and communication services stocks fell modestly. Apple slipped 0.3% and Facebook dropped 0.5%.

Several companies rose after reporting solid earnings. Paint and coatings maker PPG Industries jumped 8.7% for the biggest gain in the S&P 500 after handily beating Wall Street’s first-quarter profit and revenue forecasts. Other standouts include J.B. Hunt Transport Services, which rose 1.4% after reporting solid financial results.

The market is heading into the busiest two weeks of the earnings reporting season. Expectations are high for companies to show they are recovering from the pandemic or have roadmaps to show when profits will return. Dozens of companies will report next week, including Coca-Cola, Johnson & Johnson, Verizon Communications, Dow Chemical and American Airlines.

 

[bigdog]

ASX 200 expected to storm higher​

The Australian share market looks set to start the week on a very positive note. This follows a solid finish to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the week 35 points or 0.5% higher this morning. On Wall Street on Friday, the Dow Jones rose 0.5%, the S&P 500 climbed 0.35%, and the Nasdaq pushed 0.1% higher. The Dow hit a new record high after posting its fourth straight week of gains.

 

[bigdog]

Stocks close lower, pulling indexes below record highs

Technology companies helped drag U.S. stocks broadly lower Monday, pulling the indexes below the record highs they reached last week.

The S&P 500 dropped 0.5%, shedding more than a third of its gain from last week. Tech stocks were the biggest weight on the market, but the losses were shared broadly by a mix of banks, energy companies and others that rely on direct consumer spending. Chipmaker Intel fell 1.7%, Capital One lost 0.9% and Valero Energy slid 2.3%. Only real estate stocks eked out a gain.

The pullback came as bond yields mostly moved higher after easing last week. Rising bond yields tend to make shares in technology companies that have had a strong runup over the past year look too expensive.

“What we’re seeing in the markets today is that bond yields, after falling last week, are back to rising again,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “And you can see that negative correlation between rising bond yields and declining prices in technology is still with us.”

The S&P 500 fell 22.21 points to 4,163.26. The benchmark index is coming off its fourth straight weekly gain. The Dow Jones Industrial Average lost 123.04 points, or 0.4%, to 34,077.63. Both the S&P 500 and Dow hit all-time highs on Friday.

The tech-heavy Nasdaq composite slid 137.58 points, or 1%, to 13,914.77, while the Russell 2000 index of smaller companies fell more than the broader market, shedding 30.67 points, or 1.4%, to 2,232.

Stocks have rallied in recent weeks amid a string of encouraging reports on hiring, consumer confidence and spending that point to an accelerating U.S. economy. COVID-19 vaccinations and massive support from the U.S. government and Federal Reserve are fueling expectations for solid corporate profit growth as more businesses reopen after being forced to close or operate on a limited basis due to the pandemic.

A good amount of investor attention is focused on the bond market as government stimulus and the recovering economy have led to concerns about inflation. The yield on the 10-year Treasury note rose to 1.60% from 1.57% late Friday.

Even so, company earnings are front and center this week, as investors look to justify the recent rise in stock prices with the profits needed to keep the market fueled in this recovery. On average analysts are expecting profits across the S&P 500 to be up 24% from a year earlier, according to FactSet.

The busiest stretch for quarterly results begins this week, with 81 out of the 500 members of the S&P 500 due to report results, as well as 10 out the 30 members of the Dow, including Johnson & Johnson, Verizon Communications and Intel.

Coca-Cola added 0.6% Monday after beating Wall Street’s first-quarter profit forecasts and giving investors an encouraging update on improving sales. Harley-Davidson jumped 9.7% after handily beating analysts’ profit forecasts.

“Investors want to see validation of this very sharp positive economic momentum that is starting to get priced in,” Sunitha Thomas, national portfolio advisor at Northern Trust Wealth Management. “They want to see that earnings momentum is really there for the rest of the year.”

ASX 200 expected to fall​

The Australian share market looks set to trade lower on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 27 points or 0.4% lower this morning. This follows a disappointing start to the week on Wall Street, which saw the Dow Jones fall 0.36%, the S&P 500 drop 0.53%, and the Nasdaq tumble 0.98% lower.

https://apnews.com/article/joe-bide...rus-pandemic-b3604398cdcd46aea386f6bb551cc939

Stocks close lower, pulling indexes below record highs

By DAMIAN J. TROISE and ALEX VEIGA

Technology companies helped drag U.S. stocks broadly lower Monday, pulling the indexes below the record highs they reached last week.

The S&P 500 dropped 0.5%, shedding more than a third of its gain from last week. Tech stocks were the biggest weight on the market, but the losses were shared broadly by a mix of banks, energy companies and others that rely on direct consumer spending. Chipmaker Intel fell 1.7%, Capital One lost 0.9% and Valero Energy slid 2.3%. Only real estate stocks eked out a gain.

The pullback came as bond yields mostly moved higher after easing last week. Rising bond yields tend to make shares in technology companies that have had a strong runup over the past year look too expensive.

“What we’re seeing in the markets today is that bond yields, after falling last week, are back to rising again,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “And you can see that negative correlation between rising bond yields and declining prices in technology is still with us.”

The S&P 500 fell 22.21 points to 4,163.26. The benchmark index is coming off its fourth straight weekly gain. The Dow Jones Industrial Average lost 123.04 points, or 0.4%, to 34,077.63. Both the S&P 500 and Dow hit all-time highs on Friday.

The tech-heavy Nasdaq composite slid 137.58 points, or 1%, to 13,914.77, while the Russell 2000 index of smaller companies fell more than the broader market, shedding 30.67 points, or 1.4%, to 2,232.

Stocks have rallied in recent weeks amid a string of encouraging reports on hiring, consumer confidence and spending that point to an accelerating U.S. economy. COVID-19 vaccinations and massive support from the U.S. government and Federal Reserve are fueling expectations for solid corporate profit growth as more businesses reopen after being forced to close or operate on a limited basis due to the pandemic.

A good amount of investor attention is focused on the bond market as government stimulus and the recovering economy have led to concerns about inflation. The yield on the 10-year Treasury note rose to 1.60% from 1.57% late Friday.

Even so, company earnings are front and center this week, as investors look to justify the recent rise in stock prices with the profits needed to keep the market fueled in this recovery. On average analysts are expecting profits across the S&P 500 to be up 24% from a year earlier, according to FactSet.

The busiest stretch for quarterly results begins this week, with 81 out of the 500 members of the S&P 500 due to report results, as well as 10 out the 30 members of the Dow, including Johnson & Johnson, Verizon Communications and Intel.

Coca-Cola added 0.6% Monday after beating Wall Street’s first-quarter profit forecasts and giving investors an encouraging update on improving sales. Harley-Davidson jumped 9.7% after handily beating analysts’ profit forecasts.

“Investors want to see validation of this very sharp positive economic momentum that is starting to get priced in,” Sunitha Thomas, national portfolio advisor at Northern Trust Wealth Management. “They want to see that earnings momentum is really there for the rest of the year.”

Outside of earnings, several stocks made big moves Monday.

Tesla dropped 3.4% after two people ere killed in Texas in a crash of one of its models. Authorities say there was no one in the driver’s seat at the time of the crash. It’s not clear whether the car’s driver-assist system was being used.

Peloton slid 7.3% after regulators issued a safety notice over the exercise equipment company’s new treadmill. The company hasn’t been forced to recall the treadmill, and it’s fighting the issue.

Altria Group slumped 6.2% following a published report that the Biden administration is considering requiring tobacco companies to reduce the nicotine level of cigarettes sold in the U.S.

 

[bigdog]

Stocks close lower on Wall Street, led by tech and banks

Stocks fell for the second straight day Tuesday, giving up more of their recent gains as Wall Street shifts its focus on a busy week of corporate earnings reports.

The S&P 500 fell 0.7%. The benchmark index has now lost nearly all of its gain from last week. Apple fell 1.3% as part of a broad slide in technology companies. Banks also accounted for a big share of the selling, which came as bond yields fell, reversing course after moving higher on Monday.

The yield on the 10-year Treasury fell to 1.56% from 1.60%. Bank of America dropped 2.8% and Citigroup slid 3.2%.

Investors turned defensive, favoring utilities, real estate stocks and a mix of companies that make consumer staples like food and household products. General Mills rose 1.6% and Clorox added 3%.

The market has been swaying between gains and record highs to pullbacks as investors weigh solid economic growth against the risks still posed by the virus pandemic. That push and pull will likely continue as vaccine distribution rolls on and various industries reopen.

“Overall, we’re going to have some volatility in the market this year, but everything to me looks fairly rosy for the next six months or so,” said Sylvia Jablonski, chief investment officer at Defiance ETFs.

The S&P 500 fell 28.32 points to 4,134.94. The Dow Jones Industrial Average lost 256.33 points, or 0.8%, to 33,821.30. Both the S&P 500 and Dow hit all-time highs on Friday. After shedding an early gain, the technology-heavy Nasdaq slid 128.50 points, or 0.9%, to 13,786.27.

The Russell 2000 index of smaller company stocks, which has been outpacing the broader market all year, took a heavier loss, shedding 43.79 points, or 2%, to 2,188.21.

Investors are in the middle of first-quarter earnings season. Roughly 80 members of the S&P 500 will report their results this week, as well as one out of every three members of the Dow. Wall Street will be looking to see if Corporate America is recovering with the rest of the economy from the coronavirus pandemic.

On average, analysts expect quarterly profits across the S&P 500 to be up 24% from a year earlier, according to FactSet.

While earnings are likely to drive the market’s gyrations the next few weeks, investors remain concerned about whether companies are prepared to deal with the impact of higher interest rates should inflation increase, said Greg Bassuk, CEO of Axs Investments.

ASX 200 expected to sink​

It looks set to be a tough day of trade for the Australian share market on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day a sizeable 78 points or 1.1% lower this morning.

This follows a poor night of trade on Wall Street, which saw the Dow Jones fall 0.75%, the S&P 500 drop 0.68%, and the Nasdaq tumble 0.92%.

https://apnews.com/article/asia-business-stock-markets-general-news-abe71cb7dd56704b300c99e225ac93f0

Stocks close lower on Wall Street, led by tech and banks

By DAMIAN J. TROISE and ALEX VEIGA

Stocks fell for the second straight day Tuesday, giving up more of their recent gains as Wall Street shifts its focus on a busy week of corporate earnings reports.

The S&P 500 fell 0.7%. The benchmark index has now lost nearly all of its gain from last week. Apple fell 1.3% as part of a broad slide in technology companies. Banks also accounted for a big share of the selling, which came as bond yields fell, reversing course after moving higher on Monday.

The yield on the 10-year Treasury fell to 1.56% from 1.60%. Bank of America dropped 2.8% and Citigroup slid 3.2%.

Investors turned defensive, favoring utilities, real estate stocks and a mix of companies that make consumer staples like food and household products. General Mills rose 1.6% and Clorox added 3%.

The market has been swaying between gains and record highs to pullbacks as investors weigh solid economic growth against the risks still posed by the virus pandemic. That push and pull will likely continue as vaccine distribution rolls on and various industries reopen.

“Overall, we’re going to have some volatility in the market this year, but everything to me looks fairly rosy for the next six months or so,” said Sylvia Jablonski, chief investment officer at Defiance ETFs.

The S&P 500 fell 28.32 points to 4,134.94. The Dow Jones Industrial Average lost 256.33 points, or 0.8%, to 33,821.30. Both the S&P 500 and Dow hit all-time highs on Friday. After shedding an early gain, the technology-heavy Nasdaq slid 128.50 points, or 0.9%, to 13,786.27.

The Russell 2000 index of smaller company stocks, which has been outpacing the broader market all year, took a heavier loss, shedding 43.79 points, or 2%, to 2,188.21.

Investors are in the middle of first-quarter earnings season. Roughly 80 members of the S&P 500 will report their results this week, as well as one out of every three members of the Dow. Wall Street will be looking to see if Corporate America is recovering with the rest of the economy from the coronavirus pandemic.

On average, analysts expect quarterly profits across the S&P 500 to be up 24% from a year earlier, according to FactSet.

While earnings are likely to drive the market’s gyrations the next few weeks, investors remain concerned about whether companies are prepared to deal with the impact of higher interest rates should inflation increase, said Greg Bassuk, CEO of Axs Investments.

“One question is with rates likely continuing to rise over the months ahead, and more importantly with inflation likely to rise, whether companies are going to be able to charge more for their products to keep up with greater expenses,” Bassuk said.

United Airlines slid 8.5% after reporting a loss that was wider than analysts were expecting, and drugmaker Abbott Laboratories fell 3.6% after reporting revenue that fell short of forecasts.

Kansas City Southern jumped 15.2% for the biggest gain in the S&P 500 after another Canadian railway company offered to buy the railroad for $33.7 billion, far higher than a $25 billion offer made by Canadian Pacific last month.

Netflix slumped 10.6% in after-hours trading after the video streaming pioneer said it added 4 million more worldwide subscribers from January through March, its smallest gain during that three-month period in four years. That was about 2 million fewer than both management and analysts had predicted Netflix would add during the first quarter.

 

[bigdog]

Stocks end higher on Wall Street after a day of steady gains

Technology companies and banks helped lift stocks on Wall Street broadly higher Wednesday, enabling the market to claw back some of its losses after a downbeat start to the week.

The S&P 500 rose 0.9%, snapping a two-day slide. Most of the companies in the benchmark index rose, with technology, financial, and health care stocks accounting for a big share of the gains. Tesla, Amazon and other companies that rely directly on consumer spending also rose. Communication and utilities stocks fell.

Investors continued to work through company earnings reports while keeping an eye on bond yields, which eased lower. Small-company stocks far outpaced the broader market after slumping a day earlier.

“You had small-caps really get beaten up over the last few days, but today there’s some relief, and that’s pretty much enough to support everything else, at least for today,” said Willie Delwiche, investment strategist at All Star Charts. “At the end of the day, it’s still a bull market. It’s more volatile than it was last year, but the path of least resistance is still higher.”

The S&P 500 rose 38.48 points to 4,173.42. The Dow Jones Industrial Average gained 316.01 points, or 0.9%, to 34,137.31. Both the S&P 500 and Dow hit all-time highs on Friday. The technology-heavy Nasdaq added 163.95 points, or 1.2%, to 13,950.22.

The Russell 2000 index of smaller company stocks, which has been outpacing the broader market all year, led the way higher, climbing 51.42 points, or 2.3%, to 2,239.63.

The yield on the 10-year Treasury held steady at 1.56%.

Much of the market’s focus over the next two weeks will be on individual companies and how well their quarterly results turn out. This week roughly 80 members of the S&P 500 are due to report results, as well as one out of every three members of the Dow. On average, analysts expect quarterly profits across the S&P 500 to climb 24% from a year earlier, according to FactSet.

“Those companies that meet or beat on revenue and paint a nice picture for the rest of the year are being rewarded,” said J.J. Kinahan, chief strategist with TD Ameritrade. “When a railroad company is saying we really see improvement for the second half of the year, that’s a really good sign.”

ASX 200 to rebound​

The Australian share market looks set to rebound on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 31 points or 0.45% higher today. This follows a positive night of trade on Wall Street, which saw the Dow Jones jump 0.93%, the S&P 500 rise 0.93% and the Nasdaq storm 1.19% higher.

https://apnews.com/article/technolo...andemic-asia-4eddf1eee9c680da9d6e970d792332a9

Stocks end higher on Wall Street after a day of steady gains

By DAMIAN J. TROISE and ALEX VEIGA

Technology companies and banks helped lift stocks on Wall Street broadly higher Wednesday, enabling the market to claw back some of its losses after a downbeat start to the week.

The S&P 500 rose 0.9%, snapping a two-day slide. Most of the companies in the benchmark index rose, with technology, financial, and health care stocks accounting for a big share of the gains. Tesla, Amazon and other companies that rely directly on consumer spending also rose. Communication and utilities stocks fell.

Investors continued to work through company earnings reports while keeping an eye on bond yields, which eased lower. Small-company stocks far outpaced the broader market after slumping a day earlier.

“You had small-caps really get beaten up over the last few days, but today there’s some relief, and that’s pretty much enough to support everything else, at least for today,” said Willie Delwiche, investment strategist at All Star Charts. “At the end of the day, it’s still a bull market. It’s more volatile than it was last year, but the path of least resistance is still higher.”

The S&P 500 rose 38.48 points to 4,173.42. The Dow Jones Industrial Average gained 316.01 points, or 0.9%, to 34,137.31. Both the S&P 500 and Dow hit all-time highs on Friday. The technology-heavy Nasdaq added 163.95 points, or 1.2%, to 13,950.22.

The Russell 2000 index of smaller company stocks, which has been outpacing the broader market all year, led the way higher, climbing 51.42 points, or 2.3%, to 2,239.63.

The yield on the 10-year Treasury held steady at 1.56%.

Much of the market’s focus over the next two weeks will be on individual companies and how well their quarterly results turn out. This week roughly 80 members of the S&P 500 are due to report results, as well as one out of every three members of the Dow. On average, analysts expect quarterly profits across the S&P 500 to climb 24% from a year earlier, according to FactSet.

“Those companies that meet or beat on revenue and paint a nice picture for the rest of the year are being rewarded,” said J.J. Kinahan, chief strategist with TD Ameritrade. “When a railroad company is saying we really see improvement for the second half of the year, that’s a really good sign.”

Railroad operator CSX said its first-quarter profit fell because of higher expenses, but it expects to benefit as the U.S. economy strengthens further over the rest of the year. The stock rose 4.3%

Health care stocks helped lead the broader market higher after several companies reported solid financial results. Surgical device maker Intuitive Surgical rose 9.9% after handily beating analysts’ first-quarter forecasts. Medical device maker Edwards Lifesciences rose 6.3% after also reporting strong financial results.

Netflix slumped 7.4% for the biggest decline in the S&P 500. The video streaming pioneer disappointed investors with its latest report on subscriber additions, which came in below its own forecasts. The gangbuster growth Netflix had seen during the pandemic appeared to be slowing as people start leaving their homes more and as competition from rival services picks up.

Investors are looking to justify the market’s advance this year, despite the lingering pandemic and higher-than-normal unemployment. There are also signs of COVID infections increasing outside the U.S. in major economies such as India and Brazil once again.

 

[bigdog]

Stocks end lower after report on Biden’s tax proposal

A report that President Biden will propose a hefty tax increase on the gains wealthy individuals reap from investments triggered a stock market sell-off Thursday afternoon that left indexes broadly lower.

Investors who earn $1 million or more would have to pay a 39.6% tax rate on any capital gains, nearly double the current rate for Americans in that income bracket, according to the report by Bloomberg. A separate surtax on investment income could boost the overall federal tax rate for wealthy investors as high as 43.3%, the report said, citing unnamed people familiar with the proposal.

The S&P 500 fell 0.9%, wiping out an early gain. The benchmark index gave up nearly all of its gain from the day before, leaving it on track for its first weekly loss in five weeks.

The selling was widespread, with every sector in the S&P 500 closing lower. Technology stocks, banks and companies that rely on consumer spending, accounted for much of the skid. Treasury yields held mostly steady.

“The things that the market is going to react to are the unknowns,” said Andrew Mies, chief investment officer of 6Meridian. “The knowns are the economy is good and improving, earnings are good and vaccinations are going pretty well in the United States. The things the market doesn’t know are tax policy, both at the corporate and individual level, and what the Fed is going to do in the next 12 to 18 months.”

The S&P 500 lost 38.44 points to 4,134.98. The Dow Jones Industrial Average fell 321.41 points, or 0.9%, to 33,815.90. The Nasdaq slid 131.81 points, or 0.9%, to 13,818.41.

The S&P 500, which set a record high on Friday, started the week with a two-day slide before closing higher Wednesday. It’s still down 1.2% for the week.

Smaller company stocks also lost ground. The Russell 2000 index gave up 7.01 points, or 0.3%, to 2,232.61.

Stocks have rallied in recent weeks amid a string of encouraging reports on hiring, retail sales and other economic data. COVID-19 vaccinations and massive support from the U.S. government and Federal Reserve are fueling expectations for solid corporate profit growth as more businesses reopen after being forced to close or operate on a limited basis due to the pandemic.

The last round of stimulus from the government helped lift retail sales, and investors now have to weigh other proposals in Washington, including possible changes to tax laws and a proposed $2.3 trillion infrastructure package that Biden has called for spending over eight years.

Washington aside, investors are focusing on earnings as the bulk of companies in the S&P 500 spend the next few weeks reporting their financial results. Wall Street is hoping to get a better sense of just how much companies in various sectors are benefiting from the economic recovery. They are also listening for clues on prospects for the recovery to continue as vaccine distribution rolls on and people try to return to some semblance of normal.

ASX 200 expected to fall​

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 24 points or 0.35% lower this morning.

This follows a poor night of trade on Wall Street, which saw the Dow Jones, S&P 500, and Nasdaq all fall 0.9%. This follows reports that President Biden is eyeing a capital gains tax hike in the US.

https://apnews.com/article/health-t...usiness-asia-156d6987fe7508599c20abfeebb63802

Stocks end lower after report on Biden’s tax proposal

By DAMIAN J. TROISE and ALEX VEIGA

A report that President Biden will propose a hefty tax increase on the gains wealthy individuals reap from investments triggered a stock market sell-off Thursday afternoon that left indexes broadly lower.

Investors who earn $1 million or more would have to pay a 39.6% tax rate on any capital gains, nearly double the current rate for Americans in that income bracket, according to the report by Bloomberg. A separate surtax on investment income could boost the overall federal tax rate for wealthy investors as high as 43.3%, the report said, citing unnamed people familiar with the proposal.

The S&P 500 fell 0.9%, wiping out an early gain. The benchmark index gave up nearly all of its gain from the day before, leaving it on track for its first weekly loss in five weeks.

The selling was widespread, with every sector in the S&P 500 closing lower. Technology stocks, banks and companies that rely on consumer spending, accounted for much of the skid. Treasury yields held mostly steady.

“The things that the market is going to react to are the unknowns,” said Andrew Mies, chief investment officer of 6Meridian. “The knowns are the economy is good and improving, earnings are good and vaccinations are going pretty well in the United States. The things the market doesn’t know are tax policy, both at the corporate and individual level, and what the Fed is going to do in the next 12 to 18 months.”

The S&P 500 lost 38.44 points to 4,134.98. The Dow Jones Industrial Average fell 321.41 points, or 0.9%, to 33,815.90. The Nasdaq slid 131.81 points, or 0.9%, to 13,818.41.

The S&P 500, which set a record high on Friday, started the week with a two-day slide before closing higher Wednesday. It’s still down 1.2% for the week.

Smaller company stocks also lost ground. The Russell 2000 index gave up 7.01 points, or 0.3%, to 2,232.61.

Stocks have rallied in recent weeks amid a string of encouraging reports on hiring, retail sales and other economic data. COVID-19 vaccinations and massive support from the U.S. government and Federal Reserve are fueling expectations for solid corporate profit growth as more businesses reopen after being forced to close or operate on a limited basis due to the pandemic.

The last round of stimulus from the government helped lift retail sales, and investors now have to weigh other proposals in Washington, including possible changes to tax laws and a proposed $2.3 trillion infrastructure package that Biden has called for spending over eight years.

Washington aside, investors are focusing on earnings as the bulk of companies in the S&P 500 spend the next few weeks reporting their financial results. Wall Street is hoping to get a better sense of just how much companies in various sectors are benefiting from the economic recovery. They are also listening for clues on prospects for the recovery to continue as vaccine distribution rolls on and people try to return to some semblance of normal.

AT&T rose 4.2% after reporting results that beat expectations, helped by higher wireless phone charges as well as the success of its streaming service HBOMax. Equifax jumped 14.9% after also reporting strong results.

Union Pacific fell 2.4% after the railroad operator reported a 9% drop in profit.

The broader market has had a choppy week of ups and downs as Wall Street digests earnings and tries to gauge how much and how quickly the U.S. and global economy will recover through 2021.

“It’s not a clear time in the market,” said Jay Hatfield, CEO and portfolio manager at Infrastructure Capital Advisors. “You’re in a trading range until you get some more clarity on the global recovery.”

The U.S. is showing solid signs of recovery, while Europe and other parts of the world lag behind. That will likely change as soon as more vaccines are distributed internationally, Hatfield said.

Credit Suisse dropped 3.6% after the Swiss bank announced it would issue more stock to help it recover from the losses it suffered because of the implosion of a hedge fund earlier this year. Credit Suisse had been a primary backer of Archegos Capital Management, which collapsed last month after several of its bets went sour.

Investors got a bit of good news on the economy when the Labor Department reported that the number of Americans filing for unemployment fell again last week. Unemployment claims were 547,000, the lowest point since the pandemic struck and an encouraging sign that layoffs are slowing.

The yield on the 10-year Treasury slipped to 1.55% from 1.56% late Wednesday.

 

[bigdog]

Stocks rise, erasing most of S&P 500′s weekly losses

Stocks closed out a choppy week of trading with a broad rally, though the gains were not enough to keep the S&P 500 from its first weekly loss in the last five.

The benchmark index rose 1.1% Friday, clawing back all of its losses from a day earlier. It posted a 0.1% loss for the week. The gains were shared broadly by nearly every sector in the index. Technology companies accounted for a big slice of the rally, along with banks, communication stocks and companies that rely on consumer spending. The utilities and consumer staples sectors closed slightly lower. Treasury yields inched higher.

Traders focused on company earnings from big names like Intel, American Express and Honeywell. Shares in Kimberly-Clark, the maker of Huggies diapers and other consumer products, fell by the most since last October after the company reported disappointing results.

Corporate earnings have been mostly positive, but investors are weighing economic growth against threats from the pandemic and worries about changes in tax policy.

“Earnings are very good,” said Chris Gaffney, president of TIAA Bank World Markets. “That’s going to support higher stock prices along with the low interest rate environment we’re seeing.”

The S&P 500 gained 45.19 points to 4,180.17. The Dow Jones Industrial Average rose 227.59 points, or 0.7%, to 34,043.49. The tech-heavy Nasdaq climbed 198.40 points, or 1.4%, to 14,016.81.

Smaller company stocks outgained the broader market. The Russell 2000 index rose 39.24 points, or 1.8%, to 2,271.86.

Banks made solid gains as bond yields ticked higher, which allows them to charge more lucrative interest on loans. The yield on the 10-year Treasury rose to 1.56% from 1.55% late Thursday.

Wall Street has been in rally mode in recent weeks as the rollout of COVID-19 vaccinations, the massive support from the U.S. government and Federal Reserve, and a string of encouraging economic data fuel expectations for a stronger economy and solid corporate profit growth this year.

About a quarter of S&P 500 companies have reported quarterly results so far this earnings season. Of these, 84% have delivered earnings that topped Wall Street’s estimates, according to FactSet. Earnings are also blowing away analysts’ forecasts by a wider margin than average, coming in 23.6% above above the estimates, versus the 5-year average of 8.9%, according to FactSet.

Traders bid up shares in several companies Friday that reported quarterly results that beat Wall Street’s estimates. Barbie-maker Mattel added 0.8%, Snap gained 7.4% and Boston Beer rose 3%.

https://apnews.com/article/joe-bide...yo-hong-kong-18a1b2f7d15c772fe73bb9e01545c2eb

Stocks rise, erasing most of S&P 500′s weekly losses

By DAMIAN J. TROISE and ALEX VEIGA

Stocks closed out a choppy week of trading with a broad rally, though the gains were not enough to keep the S&P 500 from its first weekly loss in the last five.

The benchmark index rose 1.1% Friday, clawing back all of its losses from a day earlier. It posted a 0.1% loss for the week. The gains were shared broadly by nearly every sector in the index. Technology companies accounted for a big slice of the rally, along with banks, communication stocks and companies that rely on consumer spending. The utilities and consumer staples sectors closed slightly lower. Treasury yields inched higher.

Traders focused on company earnings from big names like Intel, American Express and Honeywell. Shares in Kimberly-Clark, the maker of Huggies diapers and other consumer products, fell by the most since last October after the company reported disappointing results.

Corporate earnings have been mostly positive, but investors are weighing economic growth against threats from the pandemic and worries about changes in tax policy.

“Earnings are very good,” said Chris Gaffney, president of TIAA Bank World Markets. “That’s going to support higher stock prices along with the low interest rate environment we’re seeing.”

The S&P 500 gained 45.19 points to 4,180.17. The Dow Jones Industrial Average rose 227.59 points, or 0.7%, to 34,043.49. The tech-heavy Nasdaq climbed 198.40 points, or 1.4%, to 14,016.81.

Smaller company stocks outgained the broader market. The Russell 2000 index rose 39.24 points, or 1.8%, to 2,271.86.

Banks made solid gains as bond yields ticked higher, which allows them to charge more lucrative interest on loans. The yield on the 10-year Treasury rose to 1.56% from 1.55% late Thursday.

Wall Street has been in rally mode in recent weeks as the rollout of COVID-19 vaccinations, the massive support from the U.S. government and Federal Reserve, and a string of encouraging economic data fuel expectations for a stronger economy and solid corporate profit growth this year.

About a quarter of S&P 500 companies have reported quarterly results so far this earnings season. Of these, 84% have delivered earnings that topped Wall Street’s estimates, according to FactSet. Earnings are also blowing away analysts’ forecasts by a wider margin than average, coming in 23.6% above above the estimates, versus the 5-year average of 8.9%, according to FactSet.

Traders bid up shares in several companies Friday that reported quarterly results that beat Wall Street’s estimates. Barbie-maker Mattel added 0.8%, Snap gained 7.4% and Boston Beer rose 3%.

Some quarterly report cards failed to impress investors. Intel fell 5.3% after the company said late Thursday that it expects the ongoing chip supply shortage to remain for some time. The shortage of semiconductors has impacted other industries too. Car manufacturers like Ford and General Motors have had to halt production due to the lack of chips.

American Express slid 1.9% after the company reported a 10% drop in revenue from last year as many of its customers stopped using their cards for travel, entertainment and dining. The company has called 2021 a “transition year” and did not give an outlook for the upcoming year due to the uncertainty on when travel and dining would return in the U.S. and globally.

Kimberly-Clark fell 5.9% for the biggest decline in the S&P 500 after reporting disappointing first-quarter financial results.

Next week will be another busy period for earnings, with 181 S&P 500 companies, including Tesla, Starbucks, Microsoft and Amazon.com, set to report results.

Investors are also weighing the implications of President Joe Biden’s plans to introduce higher capital gains taxes to help pay for the increased government spending to help the economy recover from the pandemic. Bloomberg News reported the pending proposal Thursday afternoon, citing unidentified sources.

Higher taxes on capital gains would make stocks marginally more expensive in the long term, which might impact the market’s overall valuation. Despite millions of Americans having their retirement funds in the stock and bond markets, most stocks are owned by the rich.

Stocks closed lower on Thursday following reports of Biden’s proposed tax policy changes, but the news shouldn’t have surprised investors, Gaffney said.

“It was a campaign promise,” Gaffney said. “The sell-off was overdone and so today we’re back up.”

Meanwhile, the price of Bitcoin dropped about 2% to $50,675 Friday, according to the tracking site CoinDesk. The cryptocurrency had traded for as much as $63,000 as recently as last week.

 

[bigdog]

ASX 200 futures pointing higher​

The Australian share market looks set to start the week much as it finished it. According to the latest SPI futures, the ASX 200 is expected to open the week 4 points higher this morning.

This is despite Wall Street finishing the week very strongly on Friday. The Dow Jones rose 0.7%, the S&P 500 climbed 1.1%, and the Nasdaq stormed 1.4% higher.

 

[bigdog]

Stocks reach more records as earnings kick into high gear

Technology companies helped lift stocks modestly higher on Wall Street Monday, nudging the S&P 500 and Nasdaq indexes to all-time highs.

The S&P 500 rose 0.2%, with only slightly more than half the companies in the index notching gains. Banks and companies that rely on consumer spending were among the winners, outweighing a pullback in household goods makers and health care stocks, among others.

A rally in technology companies, which powered much of the market’s gains in 2020, helped push the Nasdaq to its first record high since Feb. 12. The index fell more than 10% from that peak by March 8, what is known on Wall Street as a “correction.” With Monday’s gain, the Nasdaq has recouped all of its losses from that March slide.

The Dow Jones Industrial Average closed slightly lower, while small company stocks outpaced the broader market, a sign investors are feeling confident about the economy. Treasury yields were broadly higher.

The market’s modest gains came as investors geared up for the busiest week for earnings so far this season. Of the 500 members of the S&P 500 index, 181 will report this week. Ten of the 30 members of the Dow will also release their results.

“This week is an extremely important week overall for the S&P 500 companies,” said Quincy Krosby, chief market strategist at Prudential Financial.

The S&P 500 rose 7.45 points to 4,187.62. The index has posted a weekly gain four out of the past five weeks. The Nasdaq gained 121.97 points, or 0.9%, to 14,138.78. The Dow slipped 61.92 points, or 0.2%, to 33,981.57. The Russell 2000 index of smaller companies climbed 26.15 points, or 1.2%, to 2,298.01.

With millions of vaccines going out daily and trillions of dollars worth of government-led economic support being paid out, investors have turned much of their attention to how well the global economy — and corporate profits — will do in the recovery. Corporate profits in the S&P 500 are expected to be up 24% from this time a year ago, according to FactSet.

Earnings growth is being welcomed by investors who have had to justify high stock values as many companies continue to emerge from a pandemic slump.

“From an absolute perspective, everybody’s expensive,” said Sam Stovall, chief investment strategist at CFRA. “Investors are basically saying we can live with that because they believe earnings are going to be even stronger than currently projected.”

About a quarter of S&P 500 companies have reported quarterly results so far this earnings season. Of these, 84% have delivered earnings that topped Wall Street’s estimates, according to FactSet.

ASX 200 expected to rise​

The Australian share market looks set to bounce back on Tuesday following a solid night start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 10 points or 0.15% higher this morning. In the United States, the Dow Jones dropped 0.18% but the S&P 500 rose 0.18% and the Nasdaq climbed 0.87% to a record close.

https://apnews.com/article/technolo...yo-hong-kong-170492d96109bdbc8ea70507c8cb6314

Stocks reach more records as earnings kick into high gear

By DAMIAN J. TROISE and ALEX VEIGA

Technology companies helped lift stocks modestly higher on Wall Street Monday, nudging the S&P 500 and Nasdaq indexes to all-time highs.

The S&P 500 rose 0.2%, with only slightly more than half the companies in the index notching gains. Banks and companies that rely on consumer spending were among the winners, outweighing a pullback in household goods makers and health care stocks, among others.

A rally in technology companies, which powered much of the market’s gains in 2020, helped push the Nasdaq to its first record high since Feb. 12. The index fell more than 10% from that peak by March 8, what is known on Wall Street as a “correction.” With Monday’s gain, the Nasdaq has recouped all of its losses from that March slide.

The Dow Jones Industrial Average closed slightly lower, while small company stocks outpaced the broader market, a sign investors are feeling confident about the economy. Treasury yields were broadly higher.

The market’s modest gains came as investors geared up for the busiest week for earnings so far this season. Of the 500 members of the S&P 500 index, 181 will report this week. Ten of the 30 members of the Dow will also release their results.

“This week is an extremely important week overall for the S&P 500 companies,” said Quincy Krosby, chief market strategist at Prudential Financial.

The S&P 500 rose 7.45 points to 4,187.62. The index has posted a weekly gain four out of the past five weeks. The Nasdaq gained 121.97 points, or 0.9%, to 14,138.78. The Dow slipped 61.92 points, or 0.2%, to 33,981.57. The Russell 2000 index of smaller companies climbed 26.15 points, or 1.2%, to 2,298.01.

With millions of vaccines going out daily and trillions of dollars worth of government-led economic support being paid out, investors have turned much of their attention to how well the global economy — and corporate profits — will do in the recovery. Corporate profits in the S&P 500 are expected to be up 24% from this time a year ago, according to FactSet.

Earnings growth is being welcomed by investors who have had to justify high stock values as many companies continue to emerge from a pandemic slump.

“From an absolute perspective, everybody’s expensive,” said Sam Stovall, chief investment strategist at CFRA. “Investors are basically saying we can live with that because they believe earnings are going to be even stronger than currently projected.”

About a quarter of S&P 500 companies have reported quarterly results so far this earnings season. Of these, 84% have delivered earnings that topped Wall Street’s estimates, according to FactSet.

Elevator and escalator maker Otis Worldwide climbed 7% for the biggest gain in the S&P 500 after beating analysts’ first-quarter profit forecasts.

Tesla fell 2.5% in after-hours trading following the release of the electric car maker’s quarterly results.

Of the companies to report this week, investors will get results from Apple, Microsoft, Boeing, McDonald’s and others.

The bond market remained relatively stable. The yield on the 10-year Treasury note rose to 1.57% from 1.56% Friday. Bond yields have remained in this narrow range for the past several days, which is a respite for investors after dealing with higher volatility in the bond market earlier this year.

Investors will be looking to the Federal Reserve as the nation’s central bank holds a two-day policy meeting on Tuesday and Wednesday. Investors do not expect interest rates to change for several months, but will be looking for any guidance the Fed has to provide on their thoughts on inflation and the economic recovery.

In addition, the market will be focused Wednesday on President Biden’s prime-time address to Congress and what new details it may bring on plans for a infrastructure package and tax reform.

Meanwhile, the price of Bitcoin rose 8.8% to $53,877. The cryptocurrency had traded for as much as $63,000 as recently as last week.

 

[bigdog]

Stocks end a wobbly day mixed, S&P 500 still near record

By DAMIAN J. TROISE and ALEX VEIGA

Stock indexes closed out a wobbly day of trading on Wall Street with a mixed finish Tuesday, leaving the S&P 500 index just below its all-time high.

The benchmark index slipped less than 0.1% after wavering between small gains and losses for much of the day. Losses in technology, health care, communication services and other sectors in the index outweighed gains in banks, industrial stocks and energy companies. The Dow Jones Industrial Average also ended up essentially flat, while the Nasdaq fell.

The market’s choppy turn came as investors pored over a mixed batch of company quarterly report cards in what is the busiest week for earnings so far this season. UPS, Hasbro and Archer-Daniels-Midland were among the winners after delivering results that impressed traders. Among the losers: Tesla, Eli Lilly and General Electric.

Investors expect U.S. corporate results due out this week to show stronger profits as coronavirus vaccines are rolled out and as consumer spending strengthens.

“What’s more of a focus is really the guidance they’re giving, looking further into 2021 and beyond,” said Greg Bassuk, chairman and CEO of AXS Investments. “A lot of companies are trying to figure ultimately when the COVID-19 cloud is really going to lift.

The S&P 500 lost 0.90 points to 4,186.72. The index was coming off its latest all-time high. The Dow barely recovered from an early slide, adding 3.36 points, or less than 0.1%, to 33,984.93. The Nasdaq fell 48.56 points, or 0.3%, to 14,090.22. The tech-heavy index also set a record high on Monday.

Smaller companies fared better than the rest of the market. The Russell 2000 index inched up 3.26 points, or 0.1%, to 2,301.27.

The market has been choppy over the last few weeks as investors gauge how companies fared during the first quarter and any other information that can help paint a clearer picture of where the economy is headed. UPS vaulted 10.4% for the biggest gain in the S&P 500 after reporting another surge in delivery volumes as well as profits that came in well ahead of what investors were expecting.

Tesla, whose stock has been soaring over the past year, fell 4.5% despite reporting stronger sales of electric vehicles.

General Electric fell 0.6% after the troubled industrial giant reported a double-digit drop in revenue and a quarter loss, as the company continues to struggle in its turnaround plan. GE’s stock has been volatile this year, soaring as much as 80%.

Microsoft fell 3.1% in after-hours trading following the release of its quarterly results.

Beyond earnings, investors are watching the latest economic reports for more clues about the pace and scale of the economic recovery. Consumer confidence rose sharply for a second straight month in April, hitting the highest level since the pandemic began. Meanwhile, U.S. home prices rose in February at the fastest pace in nearly seven years as strong demand for housing collided with a tight supply of homes on the market.

ASX 200 expected to rise​

It looks set to be a decent day of trade for the Australian share market on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 15 points or 0.2% higher this morning. This is despite a reasonably poor night of trade on Wall Street, which saw the Dow Jones and S&P 500 trade flat and the Nasdaq fall 0.34%.

https://apnews.com/article/health-f...-coronavirus-0942fe921aaa405663999bb64c9ccf8a

Stocks end a wobbly day mixed, S&P 500 still near record

By DAMIAN J. TROISE and ALEX VEIGA

Stock indexes closed out a wobbly day of trading on Wall Street with a mixed finish Tuesday, leaving the S&P 500 index just below its all-time high.

The benchmark index slipped less than 0.1% after wavering between small gains and losses for much of the day. Losses in technology, health care, communication services and other sectors in the index outweighed gains in banks, industrial stocks and energy companies. The Dow Jones Industrial Average also ended up essentially flat, while the Nasdaq fell.

The market’s choppy turn came as investors pored over a mixed batch of company quarterly report cards in what is the busiest week for earnings so far this season. UPS, Hasbro and Archer-Daniels-Midland were among the winners after delivering results that impressed traders. Among the losers: Tesla, Eli Lilly and General Electric.

Investors expect U.S. corporate results due out this week to show stronger profits as coronavirus vaccines are rolled out and as consumer spending strengthens.

“What’s more of a focus is really the guidance they’re giving, looking further into 2021 and beyond,” said Greg Bassuk, chairman and CEO of AXS Investments. “A lot of companies are trying to figure ultimately when the COVID-19 cloud is really going to lift.

The S&P 500 lost 0.90 points to 4,186.72. The index was coming off its latest all-time high. The Dow barely recovered from an early slide, adding 3.36 points, or less than 0.1%, to 33,984.93. The Nasdaq fell 48.56 points, or 0.3%, to 14,090.22. The tech-heavy index also set a record high on Monday.

Smaller companies fared better than the rest of the market. The Russell 2000 index inched up 3.26 points, or 0.1%, to 2,301.27.

The market has been choppy over the last few weeks as investors gauge how companies fared during the first quarter and any other information that can help paint a clearer picture of where the economy is headed. UPS vaulted 10.4% for the biggest gain in the S&P 500 after reporting another surge in delivery volumes as well as profits that came in well ahead of what investors were expecting.

Tesla, whose stock has been soaring over the past year, fell 4.5% despite reporting stronger sales of electric vehicles.

General Electric fell 0.6% after the troubled industrial giant reported a double-digit drop in revenue and a quarter loss, as the company continues to struggle in its turnaround plan. GE’s stock has been volatile this year, soaring as much as 80%.

Microsoft fell 3.1% in after-hours trading following the release of its quarterly results.

Beyond earnings, investors are watching the latest economic reports for more clues about the pace and scale of the economic recovery. Consumer confidence rose sharply for a second straight month in April, hitting the highest level since the pandemic began. Meanwhile, U.S. home prices rose in February at the fastest pace in nearly seven years as strong demand for housing collided with a tight supply of homes on the market.

The Federal Reserve starts a two-day policy meeting Tuesday. Investors expect the U.S. central bank to keep its key lending rate close to zero and inject more money into the financial system through bond purchases.

Bond yields remained relatively stable. The yield on the 10-year Treasury rose to 1.62% from 1.57% late Monday.

Also in Washington, Wall Street will be paying attention to President Joe Biden’s speech to a joint session of Congress on Wednesday. The speech is expected to lay out several parts of President Biden’s agenda, which will include increased infrastructure spending, likely higher taxes on the wealthy as well as higher funding for government programs.

“The question is what does it mean, not only for corporate taxes, but also personal taxes?” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

 

[bigdog]

Bond yields also fall broadly.

A choppy day of trading on Wall Street ended with stocks modestly lower Wednesday after the Federal Reserve said it is leaving its key interest rate unchanged near zero, while noting recent improvement in the economy.

The S&P 500 slipped 0.1 percent after wavering between small gains and losses. Gains in communication services, energy and financial companies outweighed declines in technology and health care stocks. Bond yields also fell broadly, pulling back after an early rally.

In its latest policy update, the central bank left its benchmark short-term rate near zero, where it’s been since the pandemic erupted nearly a year ago, to help keep loan rates down to encourage borrowing and spending. It also said that it would keep buying $120 billion in bonds each month to try to keep longer-term borrowing rates low.

“With no meaningful change to monetary policy or communication, this meeting was simply a message to market participants to sit back and observe as the economic recovery continues to unfold,” said Charlie Ripley, senior investment strategist for Allianz Investment Management.

Stocks initially got a bump following the 2 p.m. Eastern release of the Fed’s statement, but shed those gains by the end of the day.

The S&P 500 dropped 3.54 points to 4,183.18. The benchmark index hit an all-time high on Monday. The Dow Jones Industrial Average lost 164.55 points, or 0.5 percent, to 33,820.38. The tech-heavy Nasdaq gave up 39.19 points, or 0.3 percent, to 14,051.03.

Smaller company stocks fared better than the bigger companies. The Russell 2000 index rose 2.89 points, or 0.1 percent, to 2,304.16.

Wall Street has been mostly grinding higher in recent weeks, pushing stock indexes to record highs, as the rollout of COVID-19 vaccinations, the massive support from the U.S. government and the Fed, and a string of encouraging economic data fuel expectations for a stronger economy and solid corporate profit growth this year.

The expectations for a strong rebound, and rising prices for oil, lumber and other commodities, have also spurred concerns over inflation and the prospects for higher interest rates. Those worries have helped fuel a rapid rise in bond yields from where they were at the start of the year.

ASX 200 expected to rise​

The Australian share market looks set to rise again on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 17 points or 0.25% higher this morning. This is despite weakness on Wall Street overnight, which saw the Dow Jones fall 0.48%, the S&P 500 edge 0.08% lower, and the Nasdaq drop 0.28% higher. This follows the US Federal Reserve’s meeting

https://www.pressherald.com/2021/04/28/stock-indexes-slip-after-fed-leaves-rates-alone/

By DAMIAN J. TROISE and ALEX VEIGA Associated Press

Bond yields also fall broadly.

A choppy day of trading on Wall Street ended with stocks modestly lower Wednesday after the Federal Reserve said it is leaving its key interest rate unchanged near zero, while noting recent improvement in the economy.

The S&P 500 slipped 0.1 percent after wavering between small gains and losses. Gains in communication services, energy and financial companies outweighed declines in technology and health care stocks. Bond yields also fell broadly, pulling back after an early rally.

In its latest policy update, the central bank left its benchmark short-term rate near zero, where it’s been since the pandemic erupted nearly a year ago, to help keep loan rates down to encourage borrowing and spending. It also said that it would keep buying $120 billion in bonds each month to try to keep longer-term borrowing rates low.

“With no meaningful change to monetary policy or communication, this meeting was simply a message to market participants to sit back and observe as the economic recovery continues to unfold,” said Charlie Ripley, senior investment strategist for Allianz Investment Management.

Stocks initially got a bump following the 2 p.m. Eastern release of the Fed’s statement, but shed those gains by the end of the day.

The S&P 500 dropped 3.54 points to 4,183.18. The benchmark index hit an all-time high on Monday. The Dow Jones Industrial Average lost 164.55 points, or 0.5 percent, to 33,820.38. The tech-heavy Nasdaq gave up 39.19 points, or 0.3 percent, to 14,051.03.

Smaller company stocks fared better than the bigger companies. The Russell 2000 index rose 2.89 points, or 0.1 percent, to 2,304.16.

Wall Street has been mostly grinding higher in recent weeks, pushing stock indexes to record highs, as the rollout of COVID-19 vaccinations, the massive support from the U.S. government and the Fed, and a string of encouraging economic data fuel expectations for a stronger economy and solid corporate profit growth this year.

The expectations for a strong rebound, and rising prices for oil, lumber and other commodities, have also spurred concerns over inflation and the prospects for higher interest rates. Those worries have helped fuel a rapid rise in bond yields from where they were at the start of the year.

In its remarks, the Fed noted that the economy and job market have “strengthened.” And, while it acknowledged that inflation has risen, the central bank said it sees the increase as transitory. Fed officials have said they want to see inflation exceed their 2 percent annual inflation target before they’d consider raising rates.

The yield on the 10-year Treasury, which influences interest rates on mortgages and other consumer loans, eased following the Fed’s statement, slipping to 1.61 percent from 1.62 percent late Tuesday.

The market welcomed the Fed’s decision to maintain its support for the economy and keep rates low, said Sylvia Jablonski, chief investment officer at Defiance ETFs.

“We don’t expect a rate hike until 2023,” Jablonski said. “This, I believe, is almost no news is good news for the market. Any rhetoric to act more quickly would have been an issue.”

Investors also focused Wednesday on corporate earnings, with dozens of companies reporting their quarterly results.

Google’s parent company, Alphabet, rose 3 percent after it said its profits doubled from a year earlier, helped by a surge of digital advertising revenue as more Americans shopped online during the pandemic. Visa rose 1.5 percent after reporting solid financial results.

Google’s solid gains helped send communications stocks higher. Oil prices rose and boosted energy company stocks. Those gains were offset by a downturn in technology and health care companies.

Investors punished several other companies that came up short with their most recent financial results. Boeing slipped 2.9 percent, while Spotify sank 12.3 percent after the music streaming company announced that subscriber growth had slowed more than expected.

Biotechnology company Amgen was among the biggest losers. It fell 7.2 percent after its first-quarter profits and revenue fell short of analysts’ forecasts.

 

[bigdog]

Stocks end higher, pushing S&P 500 to another record high

Stocks overcame a midday stumble on Wall Street to close broadly higher Thursday, driving the S&P 500 to another record high.

The benchmark index rose 0.7% after having been down 0.2% earlier. Communications companied helped power a big part of the gain, led by a sharp rise in Facebook following the company’s latest quarterly report card. Banks also helped lead the rally, outweighing a pullback in health care and technology stocks. Treasury yields were mixed.

Investors weighed the latest batch of company earnings reports and encouraging economic data. A report showing that the U.S. economy grew sharply in the first quarter is among the latest data pointing to an economic recovery from the recession brought on by the pandemic. Other upbeat reports included data showing that more Americans were signing contracts to buy homes in March after two months of declines.

“We’re experiencing a strong economic recovery that’s translating into a strong corporate earnings environment,” said Bill Northey, senior investment director at U.S. Bank Wealth Management.

The S&P 500 index rose 28.29 points to 4,211.47. The index also hit an all-time high on Monday. The Dow Jones Industrial Average added 239.98 points, or 0.7%, to 34,060.36, while the Nasdaq gained 31.52 points, or 0.2%, to 14,082.55. Both indexes had also been in the red earlier in the day.

Smaller company stocks, which have been outperforming the broader market this year, gave back some of their recent gains. The Russell 2000 index lost 8.70 points, or 0.4%, to 2,295.46.

The rollout of COVID-19 vaccinations, massive support from the U.S. government and the Fed, and increasingly positive economic data have been driving expectations for a strong rebound for the economy and robust corporate profit growth this year. That’s helped stocks push higher and kept indexes near their all-time highs.

Still, some of the big risks to the market include rising inflation getting out of hand and any aspect of the virus pandemic worsening and throwing off the economic recovery, said Keith Buchanan, senior portfolio manager at Globalt Investments.

“Without one of those two, the macroeconomic direction seems clear,” he said.

So far, company earnings for the first three months of the year are largely exceeding Wall Street’s expectations and stoking bullish profit outlooks for 2021.

Facebook jumped 7.3% after the social media giant reported stronger-than-expected results for the first quarter thanks to soaring ad revenue.

That followed an overnight dose of big technology earnings overnight from the likes of Apple, Qualcomm and others. Tech stocks drove much of the rally in 2020 and are still highly valued to investors, who are betting that the pandemic made a permanent shift in how Americans shopped and entertained themselves.

ASX 200 expected to fall​

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 15 points or 0.2% lower this morning.

This is despite it being a positive night of trade on Wall Street, which saw the Dow Jones jump 0.071%, S&P 500 rise 0.68%, and the Nasdaq rise 0.22%. Strong results from Facebook and Apple were behind these gains.

https://apnews.com/article/joe-bide...ong-shanghai-e6578c543eafbb25cecf4015a0791bb1

Stocks end higher, pushing S&P 500 to another record high

By DAMIAN J. TROISE and ALEX VEIGA

Stocks overcame a midday stumble on Wall Street to close broadly higher Thursday, driving the S&P 500 to another record high.

The benchmark index rose 0.7% after having been down 0.2% earlier. Communications companied helped power a big part of the gain, led by a sharp rise in Facebook following the company’s latest quarterly report card. Banks also helped lead the rally, outweighing a pullback in health care and technology stocks. Treasury yields were mixed.

Investors weighed the latest batch of company earnings reports and encouraging economic data. A report showing that the U.S. economy grew sharply in the first quarter is among the latest data pointing to an economic recovery from the recession brought on by the pandemic. Other upbeat reports included data showing that more Americans were signing contracts to buy homes in March after two months of declines.

“We’re experiencing a strong economic recovery that’s translating into a strong corporate earnings environment,” said Bill Northey, senior investment director at U.S. Bank Wealth Management.

The S&P 500 index rose 28.29 points to 4,211.47. The index also hit an all-time high on Monday. The Dow Jones Industrial Average added 239.98 points, or 0.7%, to 34,060.36, while the Nasdaq gained 31.52 points, or 0.2%, to 14,082.55. Both indexes had also been in the red earlier in the day.

Smaller company stocks, which have been outperforming the broader market this year, gave back some of their recent gains. The Russell 2000 index lost 8.70 points, or 0.4%, to 2,295.46.

The rollout of COVID-19 vaccinations, massive support from the U.S. government and the Fed, and increasingly positive economic data have been driving expectations for a strong rebound for the economy and robust corporate profit growth this year. That’s helped stocks push higher and kept indexes near their all-time highs.

Still, some of the big risks to the market include rising inflation getting out of hand and any aspect of the virus pandemic worsening and throwing off the economic recovery, said Keith Buchanan, senior portfolio manager at Globalt Investments.

“Without one of those two, the macroeconomic direction seems clear,” he said.

So far, company earnings for the first three months of the year are largely exceeding Wall Street’s expectations and stoking bullish profit outlooks for 2021.

 

[bigdog]

Stocks pull below record but still end best month this year

Stocks gave back some of their recent gains Friday, though the market still closed out April with its biggest monthly gain so far this year.

The S&P 500 fell 0.7% as investors backed away from technology, financial and communication stocks. Despite the decline, the benchmark index ended April with a 5.2% gain, its best month since November 2020, when President Joe Biden was elected.

Under Biden, the Dow Jones Industrial Average notched its best first 100 days under a new president since Franklin Delano Roosevelt took office in 1933, according to LPL Financial, with a 9.9% return as of April 29. The Dow delivered a 6.1% return during former President Donald Trump’s first 100 days in office.

The gains have come as large-scale coronavirus vaccination programs help people return to jobs and normal behaviors after more than a year of restrictions.

“It’s been a very solid month for global equities across the board,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “Periods of pullbacks are definitely expected when you have valuations run so much.”

The S&P 500, which hit an all-time high a day earlier, fell 30.30 points to 4,181.17. The index eked out a gain of less than 0.1% for the week. The Dow fell 185.51 points, or 0.5%, to 33,874.85 and the Nasdaq lost 119.86 points, or 0.9%, to 13,962.68.

The Russell 2000 index of smaller companies fared worse than the broader market. It fell 29.01 points, or 1.3%, to 2,266.45.

The rollout of COVID-19 vaccinations, massive support from the U.S. government and the Federal Reserve, and increasingly positive economic data have been driving expectations for a strong rebound for the economy and robust corporate profit growth this year. That’s helped stocks push higher and kept indexes near their all-time highs.

The Commerce Department delivered more encouraging news Thursday when it said the U.S. economy grew at a brisk 6.4% annual rate in the last quarter and is likely to accelerate further as more vaccinations are administered and COVID-19 cases continue to fall.

“The broad story is one of case counts on the whole being lowered across the majority of the world and vaccines ramping up generally across the world and that’s getting us back to normal,” said Jason Pride, chief investment officer of private wealth at Glenmede.

The market still has some key concerns, including how government spending will impact taxes and inflation. To pay for his plans, Biden has proposed to nearly double the tax rate that Americans who make more than $1 million in a year pay on profits from stocks and other investments. The president also wants to impose a 21% minimum tax on corporations’ foreign earnings in a bid to stop companies from stashing profits in countries with low tax rates.

Investors have also gotten strong corporate earnings which have helped justify higher stock prices. Amazon initially rose after the e-commerce giant reported that its profits more than tripled in the latest quarter. It ended 0.1% lower Friday. Earnings from other Big Tech companies have also blown away expectations. Apple and Google parent company Alphabet each reported this week that their profits more than doubled in the first quarter. Facebook came close; its earnings nearly doubled.

More than half of the companies in the S&P 500 have reported their results, which show earnings growth of 54% percent so far for index, according to FactSet.

Investors will get another big dose of earnings reports to start off May, including results from drugmakers Eli Lilly, Merck as well as Pepsi, Colgate-Palmolive, the railroad CSX and drugstore giant CVS. Investors will also get April’s jobs report next week.

The S&P 500 notched a gain of about 28% between November and April. Now the market enters the six-month stretch of May through October that has historically included among the weakest months of the year for stocks, hence the Wall Street adage “sell in May and go away.” Still, stocks have posted gains during the May-October period eight of the past 10 years, according to LPL Financial.

Most markets outside the U.S. also rose in April, though the gains were more modest than those for the S&P 500 and Nasdaq. One exception was India, where the market fell 1.5% amid an explosion in coronavirus cases that has catapulted the death to more than 200,000.

https://apnews.com/article/asia-fin...th-pandemics-2859c0d2aeed2f3193e4ac625c3cc535

Stocks pull below record but still end best month this year

By DAMIAN J. TROISE and ALEX VEIGA

Stocks gave back some of their recent gains Friday, though the market still closed out April with its biggest monthly gain so far this year.

The S&P 500 fell 0.7% as investors backed away from technology, financial and communication stocks. Despite the decline, the benchmark index ended April with a 5.2% gain, its best month since November 2020, when President Joe Biden was elected.

Under Biden, the Dow Jones Industrial Average notched its best first 100 days under a new president since Franklin Delano Roosevelt took office in 1933, according to LPL Financial, with a 9.9% return as of April 29. The Dow delivered a 6.1% return during former President Donald Trump’s first 100 days in office.

The gains have come as large-scale coronavirus vaccination programs help people return to jobs and normal behaviors after more than a year of restrictions.

“It’s been a very solid month for global equities across the board,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “Periods of pullbacks are definitely expected when you have valuations run so much.”

The S&P 500, which hit an all-time high a day earlier, fell 30.30 points to 4,181.17. The index eked out a gain of less than 0.1% for the week. The Dow fell 185.51 points, or 0.5%, to 33,874.85 and the Nasdaq lost 119.86 points, or 0.9%, to 13,962.68.

The Russell 2000 index of smaller companies fared worse than the broader market. It fell 29.01 points, or 1.3%, to 2,266.45.

The rollout of COVID-19 vaccinations, massive support from the U.S. government and the Federal Reserve, and increasingly positive economic data have been driving expectations for a strong rebound for the economy and robust corporate profit growth this year. That’s helped stocks push higher and kept indexes near their all-time highs.

The Commerce Department delivered more encouraging news Thursday when it said the U.S. economy grew at a brisk 6.4% annual rate in the last quarter and is likely to accelerate further as more vaccinations are administered and COVID-19 cases continue to fall.

“The broad story is one of case counts on the whole being lowered across the majority of the world and vaccines ramping up generally across the world and that’s getting us back to normal,” said Jason Pride, chief investment officer of private wealth at Glenmede.

There’s also the trillions of dollars in government support that has gone out to help the U.S. economy recover from the pandemic. The Commerce Department said U.S. household incomes surged 21% last month, driven largely by the $1,400 payments that went out to most Americans as part of President Biden’s economic package. Consumer spending rose at the fastest pace in nine months.

The Biden administration is also pushing for more infrastructure spending to help further boost the economy. The big policy and spending proposals have investors looking further up the road to what a “new normal” looks like after the pandemic, Pride said.

The market still has some key concerns, including how government spending will impact taxes and inflation. To pay for his plans, Biden has proposed to nearly double the tax rate that Americans who make more than $1 million in a year pay on profits from stocks and other investments. The president also wants to impose a 21% minimum tax on corporations’ foreign earnings in a bid to stop companies from stashing profits in countries with low tax rates.

Treasury yields have stabilized after jumping earlier this year as concerns about inflation rose. The yield on the 10-year Treasury slipped to 1.62% from 1.64% late Thursday, and was down from 1.68% at the start of the month. Analysts still expect yields to rise again.

“The longer term trend in yields has turned higher,” said Willie Delwiche, investment strategist at All Star Charts. “We need to see German and Japanese yields move higher as well if U.S. Treasury yields are going to resume their ascent.”

Investors have also gotten strong corporate earnings which have helped justify higher stock prices. Amazon initially rose after the e-commerce giant reported that its profits more than tripled in the latest quarter. It ended 0.1% lower Friday. Earnings from other Big Tech companies have also blown away expectations. Apple and Google parent company Alphabet each reported this week that their profits more than doubled in the first quarter. Facebook came close; its earnings nearly doubled.

More than half of the companies in the S&P 500 have reported their results, which show earnings growth of 54% percent so far for index, according to FactSet.

Investors will get another big dose of earnings reports to start off May, including results from drugmakers Eli Lilly, Merck as well as Pepsi, Colgate-Palmolive, the railroad CSX and drugstore giant CVS. Investors will also get April’s jobs report next week.

The S&P 500 notched a gain of about 28% between November and April. Now the market enters the six-month stretch of May through October that has historically included among the weakest months of the year for stocks, hence the Wall Street adage “sell in May and go away.” Still, stocks have posted gains during the May-October period eight of the past 10 years, according to LPL Financial.

Most markets outside the U.S. also rose in April, though the gains were more modest than those for the S&P 500 and Nasdaq. One exception was India, where the market fell 1.5% amid an explosion in coronavirus cases that has catapulted the death to more than 200,000.

 

[bigdog]

ASX 200 futures pointing lower​

The Australian share market looks set to start the week with a decline. According to the latest SPI futures, the ASX 200 is expected to open the week 7 points or 0.1% lower this morning.

This follows a poor finish to the week on Wall Street, which saw the Dow Jones fall 0.55%, the S&P 500 drop 0.7%, and the Nasdaq tumble 0.85%.

 

[bigdog]

Wall Street logs gains Monday on strong earnings

Health care and energy companies helped push stocks higher Monday, as Wall Street kicked off the first trading day in May with more gains after a four-month winning streak.

The S&P 500 rose 0.3%. Industrial and financial stocks also helped lift the market. Falling technology and communication stocks, and companies that rely on consumer spending, kept the market’s gains in check. Treasury yields were mixed.

Investors welcomed new economic data indicating the economy is strengthening. They also continued to focus on the latest batch of corporate earnings reports, which have been mostly encouraging and have helped fuel optimism about a solid economic recovery this year.

“In terms of earnings, we’re in a good place,” said Hilary Kramer, chief investment officer for Kramer Capital Research. “The good news is that we’re getting excellent guidance from these companies.”

The S&P 500 index rose 11.49 points to 4,192.66. The benchmark index’s latest gains follow a 5.2% surge in April, its best month since November 2020, when President Joe Biden was elected. It logged a gain of about 28% between November and April.

The Dow Jones Industrial Average added 238.38 points, or 0.7%, to 34,113.23. The tech-heavy Nasdaq shed an early gain and lost 67.56 points, or 0.5%, to 13,895.12.

Smaller companies, which have outgained the broader market this year, also had a good showing. The Russell 2000 index picked up 11 points, or 0.5%, to 2,277.45.

Stocks have been grinding higher on expectations of an economic recovery and strong company profits this year as large-scale coronavirus vaccination programs help people return to jobs and normal behaviors after more than a year of restrictions. Massive support from the U.S. government and the Federal Reserve, and increasingly positive economic data, have also helped put investors in a buying mood, keeping stock indexes near their all-time highs.

More than half of the companies in the S&P 500 have reported their results so far this earnings season, which show profit growth of 54% so far, according to FactSet.

This will be another busy week for earnings reports, with Merck, Pepsi, Colgate-Palmolive and CVS among the companies reporting their latest quarterly results. Investors will also get April’s jobs report on Friday.

While earnings have been solid, the market still faces several key risks, Kramer said, including a spike in COVID-19 cases in India shutting down manufacturing and commerce and hurting the global economic recovery, along with inflation concerns.

Among the biggest gainers Monday were oilfield services company Baker Hughes, which vaulted 8%, clothing retailer Gap Inc., which jumped 7.2%, and flooring manufacturer Mohawk Industries, which climbed 7.5%.

Shares of Verizon Communications added 0.2% after the company announced it would sell off the remnants of Yahoo! and AOL into a new company backed by private equity firm Apollo Global Management. Verizon bought Yahoo and AOL’s media assets about six years ago in an effort to compete with Google and Facebook, but the effort never panned out and Verizon returned its focus to its traditional wireless cell operations.

Warren Buffett’s Berkshire Hathaway rose 1.5% after the billionaire investor named his successor after years of speculation. Greg Abel, who runs Berkshire Hathaway’s non-insurance business, will step into the CEO role when Buffett retires.

ASX 200 expected to rise​

The Australian share market looks set to have a positive day on Tuesday following a solid start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 16 points or 0.25% higher this morning.

In the United States the Dow Jones rose 0.7% and the S&P 500 climbed 0.27%. The tech-focused Nasdaq index was out of form, though, and dropped 0.48%. This could weigh on local tech shares today.

https://apnews.com/article/japan-ch...rkets-health-8a2639db7c899466a235ca1ab170ed3c

Wall Street logs gains Monday on strong earnings

By DAMIAN J. TROISE and ALEX VEIGA

Health care and energy companies helped push stocks higher Monday, as Wall Street kicked off the first trading day in May with more gains after a four-month winning streak.

The S&P 500 rose 0.3%. Industrial and financial stocks also helped lift the market. Falling technology and communication stocks, and companies that rely on consumer spending, kept the market’s gains in check. Treasury yields were mixed.

Investors welcomed new economic data indicating the economy is strengthening. They also continued to focus on the latest batch of corporate earnings reports, which have been mostly encouraging and have helped fuel optimism about a solid economic recovery this year.

“In terms of earnings, we’re in a good place,” said Hilary Kramer, chief investment officer for Kramer Capital Research. “The good news is that we’re getting excellent guidance from these companies.”

The S&P 500 index rose 11.49 points to 4,192.66. The benchmark index’s latest gains follow a 5.2% surge in April, its best month since November 2020, when President Joe Biden was elected. It logged a gain of about 28% between November and April.

The Dow Jones Industrial Average added 238.38 points, or 0.7%, to 34,113.23. The tech-heavy Nasdaq shed an early gain and lost 67.56 points, or 0.5%, to 13,895.12.

Smaller companies, which have outgained the broader market this year, also had a good showing. The Russell 2000 index picked up 11 points, or 0.5%, to 2,277.45.

Stocks have been grinding higher on expectations of an economic recovery and strong company profits this year as large-scale coronavirus vaccination programs help people return to jobs and normal behaviors after more than a year of restrictions. Massive support from the U.S. government and the Federal Reserve, and increasingly positive economic data, have also helped put investors in a buying mood, keeping stock indexes near their all-time highs.

More than half of the companies in the S&P 500 have reported their results so far this earnings season, which show profit growth of 54% so far, according to FactSet.

This will be another busy week for earnings reports, with Merck, Pepsi, Colgate-Palmolive and CVS among the companies reporting their latest quarterly results. Investors will also get April’s jobs report on Friday.

While earnings have been solid, the market still faces several key risks, Kramer said, including a spike in COVID-19 cases in India shutting down manufacturing and commerce and hurting the global economic recovery, along with inflation concerns.

Among the biggest gainers Monday were oilfield services company Baker Hughes, which vaulted 8%, clothing retailer Gap Inc., which jumped 7.2%, and flooring manufacturer Mohawk Industries, which climbed 7.5%.

Shares of Verizon Communications added 0.2% after the company announced it would sell off the remnants of Yahoo! and AOL into a new company backed by private equity firm Apollo Global Management. Verizon bought Yahoo and AOL’s media assets about six years ago in an effort to compete with Google and Facebook, but the effort never panned out and Verizon returned its focus to its traditional wireless cell operations.

Warren Buffett’s Berkshire Hathaway rose 1.5% after the billionaire investor named his successor after years of speculation. Greg Abel, who runs Berkshire Hathaway’s non-insurance business, will step into the CEO role when Buffett retires.

On the economic front, a report on U.S. manufacturing activity in April came in below economists’ expectations, but still was strong for the month. The Institute for Supply Management’s manufacturing index came in at 60.7 for April, compared with the 65.0 reading that was expected. However that figure is still well above the 50-point mark that indicates expanding manufacturing activity.

A report on U.S. construction spending showed similar results, making gains but still falling short of economists’ forecasts. Spending on construction projects rose just 0.2% in March, the Commerce Department said Monday, significantly less than the 1.7% jump economists had expected.

The yield on the 10-year U.S. Treasury note slipped to 1.60% from 1.65% late Friday.

 

[bigdog]

Technology shares sink broader market although Dow has gain

Technology companies dragged indexes lower on Wall Street Tuesday, pulling the market further from its recent all-time highs.

The S&P 500 fell 0.7%, erasing its gains from last week. Big technology companies like Apple and Microsoft fell as the sector declined for the sixth straight day. Losses in communications stocks and companies that rely on consumer spending also weighed on the market, offsetting gains by financial, industrial and materials stocks. Treasury yields fell slightly.

Investors continue to focus on corporate earnings and on gauging the economic recovery’s progress. Earnings and most economic indicators have been signaling a steady improvement, but investors remain concerned about the lingering threat from COVID-19, inflation and other factors that could crimp progress.

A key concern has been the recovery in the employment market. Investors will get another update with this week’s jobs report.

“The entire market is down, but the tech stuff is down way more,” said Ross Mayfield, investment strategist at Baird. “If you look at the broad picture, the earnings beats are strong and we’re expecting a big” jobs number on Friday, he said.

The S&P 500 fell 28 points to 4,164.66. The benchmark index hit an all-time high last Thursday. The technology-heavy Nasdaq Composite dropped 261.61 points, or 1.9%, to 13,663.50. The Russell 2000 index of small-company stocks lost 29.17 points, or 1.3%, to 2,248.29. The Dow Jones Industrial Average fared better than the other indexes. It recovered from an early stumble, adding 19.80 points, or 0.1%, to 34,133.03.

Before this week, stocks had been grinding higher on expectations of an economic recovery and strong company profits this year as large-scale coronavirus vaccination programs help people return to jobs and normal activities after more than a year of restrictions. Massive support from the U.S. government and the Federal Reserve, and increasingly positive economic data, have also helped put investors in a buying mood, keeping stock indexes near their all-time highs.

More than half of the companies in the S&P 500 have reported their results so far this earnings season, which show profit growth of 54%, according to FactSet.

On Monday, Federal Reserve Chairman Jerome Powell said the economic outlook has “clearly brightened” in the United States, but the recovery remains too uneven.

Still, a key concern is whether the economy is strengthening so quickly that it will force the Federal Reserve to raise interest rates to combat inflation, signs of which are already cropping up as higher prices for oil, lumber and other commodities.

Remarks by Treasury Secretary Janet Yellen Tuesday morning appeared to stoke those worries. At an economic seminar, Yellen said interest rates may have to rise to keep the economy from overheating. The selling on Wall Street accelerated following her remarks, which she later downplayed during an interview with the Wall Street Journal after the markets closed.

“That is why the sell-off hit tech stocks, especially,” said Quincy Krosby, chief market strategist at Prudential Financial. “Many would argue they were overbought and due for a pullback, and anything in this particular environment suggesting that rates could move higher is a negative for Big Tech.”

Technology stocks have had a strong runup over the past year. With the market near its recent record highs, the prospect of higher interest rates, which can slow the economy by making the cost of capital more expensive, makes tech stocks look particularly vulnerable.

ASX 200 expected to fall​

It looks set to be a difficult day of trade for the Australian share market on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 24 points or 0.35% lower this morning.

This follows a poor night of trade on Wall Street which saw the Dow Jones rise slightly but the S&P 500 fall 0.67% and the Nasdaq sink 1.88%. The latter could be bad news for local tech shares, which tend to follow the Nasdaq’s lead.

https://apnews.com/article/asia-earnings-financial-markets-business-915be2379842d8be81e5103cb58b5dba

Technology shares sink broader market although Dow has gain

By DAMIAN J. TROISE and ALEX VEIGA

Technology companies dragged indexes lower on Wall Street Tuesday, pulling the market further from its recent all-time highs.

The S&P 500 fell 0.7%, erasing its gains from last week. Big technology companies like Apple and Microsoft fell as the sector declined for the sixth straight day. Losses in communications stocks and companies that rely on consumer spending also weighed on the market, offsetting gains by financial, industrial and materials stocks. Treasury yields fell slightly.

Investors continue to focus on corporate earnings and on gauging the economic recovery’s progress. Earnings and most economic indicators have been signaling a steady improvement, but investors remain concerned about the lingering threat from COVID-19, inflation and other factors that could crimp progress.

A key concern has been the recovery in the employment market. Investors will get another update with this week’s jobs report.

“The entire market is down, but the tech stuff is down way more,” said Ross Mayfield, investment strategist at Baird. “If you look at the broad picture, the earnings beats are strong and we’re expecting a big” jobs number on Friday, he said.

The S&P 500 fell 28 points to 4,164.66. The benchmark index hit an all-time high last Thursday. The technology-heavy Nasdaq Composite dropped 261.61 points, or 1.9%, to 13,663.50. The Russell 2000 index of small-company stocks lost 29.17 points, or 1.3%, to 2,248.29. The Dow Jones Industrial Average fared better than the other indexes. It recovered from an early stumble, adding 19.80 points, or 0.1%, to 34,133.03.

Before this week, stocks had been grinding higher on expectations of an economic recovery and strong company profits this year as large-scale coronavirus vaccination programs help people return to jobs and normal activities after more than a year of restrictions. Massive support from the U.S. government and the Federal Reserve, and increasingly positive economic data, have also helped put investors in a buying mood, keeping stock indexes near their all-time highs.

More than half of the companies in the S&P 500 have reported their results so far this earnings season, which show profit growth of 54%, according to FactSet.

On Monday, Federal Reserve Chairman Jerome Powell said the economic outlook has “clearly brightened” in the United States, but the recovery remains too uneven.

Still, a key concern is whether the economy is strengthening so quickly that it will force the Federal Reserve to raise interest rates to combat inflation, signs of which are already cropping up as higher prices for oil, lumber and other commodities.

Remarks by Treasury Secretary Janet Yellen Tuesday morning appeared to stoke those worries. At an economic seminar, Yellen said interest rates may have to rise to keep the economy from overheating. The selling on Wall Street accelerated following her remarks, which she later downplayed during an interview with the Wall Street Journal after the markets closed.

“That is why the sell-off hit tech stocks, especially,” said Quincy Krosby, chief market strategist at Prudential Financial. “Many would argue they were overbought and due for a pullback, and anything in this particular environment suggesting that rates could move higher is a negative for Big Tech.”

Technology stocks have had a strong runup over the past year. With the market near its recent record highs, the prospect of higher interest rates, which can slow the economy by making the cost of capital more expensive, makes tech stocks look particularly vulnerable.

Apple fell 3.5% and Facebook slid 1.3%. Google’s parent company dropped 1.5% and Amazon lost 2.2%. The declines exacerbated Monday’s drop in tech shares, which caused the Nasdaq to end in the red.

Bond yields fell. The yield on the 10-year U.S. Treasury note dropped to 1.59% from 1.60% the day before.

Investors will get a closely watched jobs report on Friday. Economists expect that U.S. employers hired 975,000 workers last month as the economy accelerated out of the pandemic and vaccines rolled out nationwide. The unemployment rate is expected to drop to 5.8% from 6%.

Also Tuesday, Saudi Aramco said its profits soared by 30% in the first-quarter of the year, compared to last year, on the back of higher crude oil prices and recovering demand as major economies claw their way out of recession.

 

[bigdog]

US stock indexes mixed as tech rebound fades; Peloton sinks

Major U.S. stock indexes closed mixed Wednesday after an early technology company rebound faded, tempering the market’s recovery from a sell-off a day earlier.

The S&P 500 eked out a 0.1% gain after having been up 0.7% in the early going. The Dow Jones Industrial Average managed a 0.3% gain, while the tech-heavy Nasdaq slid 0.4%.

Financial and energy stocks helped keep the S&P 500 out of the red. JPMorgan Chase rose 1.3% and Exxon Mobil added 3%. Losses for retailers and other companies that rely primarily on consumer spending kept those gains in check, as did a pullback in utilities.

Technology stocks, which led the market’s blockbuster rebound in 2020, fell for the seventh straight day. The sector, one of 11 in the S&P 500, is up 4.6% this year, the third-smallest gain in the index after consumer staples and utilities. Energy companies are faring the best with a 38.1% gain so far this year.

The market’s mixed results came as investors remain focused on earnings reports, which have been better than expected. More than half of the companies in the S&P 500 have reported their results so far this earnings season, which show profit growth of 54%, according to FactSet.

“It’s been a pretty torrid pace in terms of earnings right now, but not everyone is being rewarded,” said J.J. Kinahan, chief strategist with TD Ameritrade. “To have your stock at least do OK during earnings season: No. 1 beat on revenue and No. 2 talk about a bright rest of the year trend.”

The S&P 500 added 2.93 points to 4,167.59. The benchmark index hit an all-time high last Thursday. The Dow rose 97.31 points to 34,230.34, while the Nasdaq dropped 51.08 points to 13,582.42. The Russell 2000 index of small-company stocks lost 6.92 points, or 0.3%, to 2,241.37.

Stocks had been mostly pushing higher on expectations of an economic recovery and strong company profits this year as large-scale coronavirus vaccination programs help people return to jobs and normal activities after more than a year of restrictions. Massive support from the U.S. government and the Federal Reserve, and increasingly positive economic data, have also helped put investors in a buying mood, keeping stock indexes near their all-time highs.

Still, investors remain concerned about the potential for higher inflation, signs of which are already cropping up as higher prices for oil, lumber and other commodities. Remarks by Treasury Secretary Janet Yellen suggesting the Federal Reserve would have to raise interest rates to keep the economy from overheating, led to a late-afternoon sell-off Tuesday.

Yellen downplayed those remarks, and several Fed officials followed suit Wednesday, which helped boost stocks, said Steve Chiavarone, equity strategist at Federated Hermes.

“A combination of decent (economic) data, continued good earnings and a coordinated apology tour were enough to get markets to move back in an upward direction,” he said.

General Motors shares rose 4% after the company posted a solid quarterly profit compared to a year earlier, but also affirmed its full-year outlook even as the automaker — like much of its competition — contends with a chip shortage that is impacting production.

Under Armour jumped 6.9% after the athletic apparel company reported better-than-expected results. Traders also cheered video game maker Activision Blizzard’s latest quarterly report card, driving shares 1.6% higher.

Caesars Entertainment vaulted 7.8% for the biggest gain in the S&P 500 after the hotel and casino giant said more people are booking rooms as they get vaccinated and feel comfortable traveling and going out.

Facebook shares fell 1% after the company announced its independent oversight board would continue to ban former President Donald Trump from the platform. Trump’s account had been suspended indefinitely after the January 6 insurrection at the capital, where his rhetoric has been blamed for the riots. The board did say that the company must decide if the ban is permanent.

ASX 200 expected to rise​

The Australian share market looks set to push higher again on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 10 points or 0.15% higher.

This follows a mixed night on Wall Street, which has seen the Dow Jones rise 0.29%, the S&P 500 edge 0.07% higher, and the Nasdaq fall 0.37%.

https://apnews.com/article/asia-fin...mic-business-8cc2712c5bbf3cecbf650cba22a21a3a

US stock indexes mixed as tech rebound fades; Peloton sinks

By ALEX VEIGA

Major U.S. stock indexes closed mixed Wednesday after an early technology company rebound faded, tempering the market’s recovery from a sell-off a day earlier.

The S&P 500 eked out a 0.1% gain after having been up 0.7% in the early going. The Dow Jones Industrial Average managed a 0.3% gain, while the tech-heavy Nasdaq slid 0.4%.

Financial and energy stocks helped keep the S&P 500 out of the red. JPMorgan Chase rose 1.3% and Exxon Mobil added 3%. Losses for retailers and other companies that rely primarily on consumer spending kept those gains in check, as did a pullback in utilities.

Technology stocks, which led the market’s blockbuster rebound in 2020, fell for the seventh straight day. The sector, one of 11 in the S&P 500, is up 4.6% this year, the third-smallest gain in the index after consumer staples and utilities. Energy companies are faring the best with a 38.1% gain so far this year.

The market’s mixed results came as investors remain focused on earnings reports, which have been better than expected. More than half of the companies in the S&P 500 have reported their results so far this earnings season, which show profit growth of 54%, according to FactSet.

“It’s been a pretty torrid pace in terms of earnings right now, but not everyone is being rewarded,” said J.J. Kinahan, chief strategist with TD Ameritrade. “To have your stock at least do OK during earnings season: No. 1 beat on revenue and No. 2 talk about a bright rest of the year trend.”

The S&P 500 added 2.93 points to 4,167.59. The benchmark index hit an all-time high last Thursday. The Dow rose 97.31 points to 34,230.34, while the Nasdaq dropped 51.08 points to 13,582.42. The Russell 2000 index of small-company stocks lost 6.92 points, or 0.3%, to 2,241.37.

Stocks had been mostly pushing higher on expectations of an economic recovery and strong company profits this year as large-scale coronavirus vaccination programs help people return to jobs and normal activities after more than a year of restrictions. Massive support from the U.S. government and the Federal Reserve, and increasingly positive economic data, have also helped put investors in a buying mood, keeping stock indexes near their all-time highs.

Still, investors remain concerned about the potential for higher inflation, signs of which are already cropping up as higher prices for oil, lumber and other commodities. Remarks by Treasury Secretary Janet Yellen suggesting the Federal Reserve would have to raise interest rates to keep the economy from overheating, led to a late-afternoon sell-off Tuesday.

Yellen downplayed those remarks, and several Fed officials followed suit Wednesday, which helped boost stocks, said Steve Chiavarone, equity strategist at Federated Hermes.

“A combination of decent (economic) data, continued good earnings and a coordinated apology tour were enough to get markets to move back in an upward direction,” he said.

General Motors shares rose 4% after the company posted a solid quarterly profit compared to a year earlier, but also affirmed its full-year outlook even as the automaker — like much of its competition — contends with a chip shortage that is impacting production.

Under Armour jumped 6.9% after the athletic apparel company reported better-than-expected results. Traders also cheered video game maker Activision Blizzard’s latest quarterly report card, driving shares 1.6% higher.

Caesars Entertainment vaulted 7.8% for the biggest gain in the S&P 500 after the hotel and casino giant said more people are booking rooms as they get vaccinated and feel comfortable traveling and going out.

Facebook shares fell 1% after the company announced its independent oversight board would continue to ban former President Donald Trump from the platform. Trump’s account had been suspended indefinitely after the January 6 insurrection at the capital, where his rhetoric has been blamed for the riots. The board did say that the company must decide if the ban is permanent.

Shares of exercise equipment company Peloton Interactive skidded 14.6% after the company voluntarily recalled its treadmills after dozens of reports of injuries to children and pets, and at least one death. The $4,200 treadmill was the company’s biggest expansion beyond its traditional exercise bike program.

Later this week, investors’ attention will turn to the jobs report for April. Economists expect the data to show employers hired 975,000 workers last month as the economy accelerated out of the pandemic and vaccines rolled out nationwide. The unemployment rate is expected to drop to 5.8% from 6%.

A private sector jobs report released by payroll processing company ADP found that private employers created 742,000 jobs last month, which was less than the 896,000 jobs that were expected by economics.

Bond yields were stable on Wednesday, with the 10-year Treasury note trading at a yield of 1.57%, down from 1.59% late Tuesday.