NYSE Dow Jones finished today at:

[bigdog]

US Stocks Close Higher as Banks, Technology Lead Broad Rally

Stocks are closing higher Thursday, as gains by banks and technology companies led a broad rally.

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

A choppy day of trading on Wall Street ended Thursday with stocks broadly higher and another all-time high for the Dow Jones Industrial Average.

Banks and technology companies led a late-afternoon turnaround that pushed the S&P 500 to a 0.8% gain, reversing the benchmark index's losses for the week. Gains in most Dow companies, including Goldman Sachs, IBM and Cisco Systems, nudged the blue chip index to a new high for the second straight day.

Apple, Microsoft and Intel were among the winners, contributing to the rally in tech stocks. That helped the S&P 500's technology sector break a seven-day losing streak, which reversed an early slide in the Nasdaq.

The stock indexes wavered earlier in the day, weighed down by a sell-off in health care stocks. Drugmakers Moderna and Pfizer closed lower following news late Wednesday that the White House supports waiving intellectual property rights for COVID0-19 vaccines in order to speed up immunizations in poorer countries.

Investors continued to weigh the latest corporate earnings reports while looking ahead to a key jobs report due out Friday.

“We’re getting to the end of earnings season and numbers are coming in typically ahead of expectations,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management. “The outlook for the year looks like it's OK. That's the basis for an upward-trending market.”

The S&P 500 bounced back from an early slide, adding 34.03 points to 4,201.62. The index is on track for its eighth weekly gain in the past 10 weeks. The Dow rose 318.19 points, or 0.9%, to 34,548.19. The Nasdaq Composite climbed 50.42 points, or 0.4%, to 13,632.84. The tech-heavy index had been down 1.1% in the early going.

The Russell 2000 index of smaller companies also recovered from a stumble to an essentially flat finish, adding 0.05 points, or less than 0.1%, to 2,241.42.

Bond yields were mixed, with the 10-year Treasury note trading at a yield of 1.57%, down from 1.58% late Wednesday.

Some healthcare stocks fell after news late Wednesday that the White House supports waiving intellectual property rights for coronavirus vaccines to help immunize poorer countries faster. That slide was countered by gains in household goods makers, banks and communication companies.

Moderna lost 1.4% after the company reported its first-ever quarterly profit, helped by the company’s coronavirus vaccine. The drop was largely tied to the news from the White House, as shares of other drug companies fell, including Pfizer, which dropped 1%.

Shares of Johnson & Johnson were not hurt by the news, partly because J&J has other businesses like Band-Aids, the pain reliever Tylenol and its baby products franchise. The stock inched up 0.4%

Stocks have mostly pushed higher on expectations of an economic recovery and strong profits this year. Massive support from the U.S. government and the Federal Reserve, and increasingly positive economic data, have also encouraged investors to push stock prices to all-time highs, despite an undercurrent of worry about inflation and the potential for higher interest rates later this year.

ASX 200 expected to rise​

The Australian share market looks set to end the week on a better note. According to the latest SPI futures, the ASX 200 is expected to open the day 23 points or 0.3% higher this morning.

This follows a solid night on Wall Street, which saw the Dow Jones jump 0.93%, the S&P 500 climb 0.82%, and the Nasdaq rise 0.37%.

https://www.usnews.com/news/busines...-mostly-higher-on-hopes-for-pandemic-recovery

US Stocks Close Higher as Banks, Technology Lead Broad Rally

Stocks are closing higher Thursday, as gains by banks and technology companies led a broad rally.

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

A choppy day of trading on Wall Street ended Thursday with stocks broadly higher and another all-time high for the Dow Jones Industrial Average.

Banks and technology companies led a late-afternoon turnaround that pushed the S&P 500 to a 0.8% gain, reversing the benchmark index's losses for the week. Gains in most Dow companies, including Goldman Sachs, IBM and Cisco Systems, nudged the blue chip index to a new high for the second straight day.

Apple, Microsoft and Intel were among the winners, contributing to the rally in tech stocks. That helped the S&P 500's technology sector break a seven-day losing streak, which reversed an early slide in the Nasdaq.

The stock indexes wavered earlier in the day, weighed down by a sell-off in health care stocks. Drugmakers Moderna and Pfizer closed lower following news late Wednesday that the White House supports waiving intellectual property rights for COVID0-19 vaccines in order to speed up immunizations in poorer countries.

Investors continued to weigh the latest corporate earnings reports while looking ahead to a key jobs report due out Friday.

“We’re getting to the end of earnings season and numbers are coming in typically ahead of expectations,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management. “The outlook for the year looks like it's OK. That's the basis for an upward-trending market.”

The S&P 500 bounced back from an early slide, adding 34.03 points to 4,201.62. The index is on track for its eighth weekly gain in the past 10 weeks. The Dow rose 318.19 points, or 0.9%, to 34,548.19. The Nasdaq Composite climbed 50.42 points, or 0.4%, to 13,632.84. The tech-heavy index had been down 1.1% in the early going.

The Russell 2000 index of smaller companies also recovered from a stumble to an essentially flat finish, adding 0.05 points, or less than 0.1%, to 2,241.42.

Bond yields were mixed, with the 10-year Treasury note trading at a yield of 1.57%, down from 1.58% late Wednesday.

Some healthcare stocks fell after news late Wednesday that the White House supports waiving intellectual property rights for coronavirus vaccines to help immunize poorer countries faster. That slide was countered by gains in household goods makers, banks and communication companies.

Moderna lost 1.4% after the company reported its first-ever quarterly profit, helped by the company’s coronavirus vaccine. The drop was largely tied to the news from the White House, as shares of other drug companies fell, including Pfizer, which dropped 1%.

Shares of Johnson & Johnson were not hurt by the news, partly because J&J has other businesses like Band-Aids, the pain reliever Tylenol and its baby products franchise. The stock inched up 0.4%

Stocks have mostly pushed higher on expectations of an economic recovery and strong profits this year. Massive support from the U.S. government and the Federal Reserve, and increasingly positive economic data, have also encouraged investors to push stock prices to all-time highs, despite an undercurrent of worry about inflation and the potential for higher interest rates later this year.

This week, the focus is on the health of the labor market, with the government due to report April hiring data Friday. Job growth has been one of the keys to a sustained economic rebound, but it has lagged other areas of the economy such as retail sales and consumer confidence.

“Continued job gains through the year are going to be important to continue to move things ahead,” said James Ragan, director of wealth management research at D.A. Davidson.

Economists expect the April jobs 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%.

There have already been signs that the labor market is improving. The Labor Department said Thursday that the number of Americans who filed for unemployment benefits last week fell to a pandemic low of 498,000. The payroll processing company ADP said Wednesday that private employers hired 742,000 workers last month.

On Thursday, traders sized up the latest batch of corporate earnings. Investors bid up shares in Wayfair, Kellogg and Papa John's International after they reported results that topped Wall Street's forecasts.

More earnings are on deck Friday from Cigna, Equifax and insurance giant AIG. Of the S&P 500 companies reporting so far, 84% topped analysts’ expectations, according to FactSet.

 

[bigdog]

Stocks Rally to Records After Grim Jobs Data Undercuts Rates

Stocks are closing at record highs on Wall Street Friday as a stunningly disappointing report on the nation’s job market signaled to investors that interest rates will stay low.

Stocks rallied to more records on Wall Street Friday as a stunningly disappointing report on the nation's job market signaled to investors that interest rates will likely stay low.

The S&P 500 rose 0.7%, topping the previous all-time high set last month. The Dow Jones Industrial Average set a record high for the third straight day.

Technology companies accounted for a big share of the broad rally, which included solid gains by stocks in the energy, industrial, and consumer discretionary sectors. The gains helped the S&P 500 notch its eighth weekly gain in the last 10 weeks.

Voices up and down Wall Street acknowledged that Friday morning's jobs report was a massive disappointment. It's usually the market's most anticipated economic data of each month, and it showed employers added just 266,000 jobs in April. That was far fewer than the 975,000 jobs that economists expected and a steep slowdown from March’s hiring pace of 770,000.

“It was a bit of a shock when that headline number hit, but you realize most of, if not all of it, is the result not necessarily of demand, but supply," said Peter Essele, head of portfolio management for Commonwealth Financial Network. ”There seems to be a bit of a labor shortage at the moment."

The weak report jolted the bond market and initially sent yields tumbling. The yield on the 10-year Treasury briefly dropped below 1.49%, toward its lowest level in two months before recovering. By the market's close it was unchanged from 1.56% late Thursday.

Many analysts said they don’t want to put too much emphasis on just one month of discouraging data. They still expect the economy to strengthen mightily as coronavirus vaccinations roll out. The weak jobs number also bolsters the case for the Federal Reserve to keep interest rates low in hopes of boosting the jobs market.

The S&P 500 index rose 30.98 points to 4,232.60, its third straight gain. The Dow Jones Industrial Average gained 229.23 points, or 0.7%, to 34,777.76. The Nasdaq composite picked up 119.39 points, or 0.9%, to 13,752.24.

Small company stocks also got a solid bump. The Russell 2000 index outgained the major stock indexes, climbing 30.21 points, or 1.4%, to 2,271.63.

Stocks that have benefited most from low rates, including high-growth tech companies, helped lead the market on Friday. Microsoft rose 1.1%, and Nvidia gained 2% as the tech sector alone accounted for more than 25% of the S&P 500's gain.

Strong earnings reports also helped to boost the market, as companies continue to turn in blockbuster growth for the first three months of the year.

https://www.usnews.com/news/busines...res-mostly-rise-on-us-rally-eyes-on-jobs-data

Stocks Rally to Records After Grim Jobs Data Undercuts Rates​

Stocks are closing at record highs on Wall Street Friday as a stunningly disappointing report on the nation’s job market signaled to investors that interest rates will stay low.

By Associated Press May 7, 2021, at 4:51 p.m.

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

Stocks rallied to more records on Wall Street Friday as a stunningly disappointing report on the nation's job market signaled to investors that interest rates will likely stay low.

The S&P 500 rose 0.7%, topping the previous all-time high set last month. The Dow Jones Industrial Average set a record high for the third straight day.

Technology companies accounted for a big share of the broad rally, which included solid gains by stocks in the energy, industrial, and consumer discretionary sectors. The gains helped the S&P 500 notch its eighth weekly gain in the last 10 weeks.

Voices up and down Wall Street acknowledged that Friday morning's jobs report was a massive disappointment. It's usually the market's most anticipated economic data of each month, and it showed employers added just 266,000 jobs in April. That was far fewer than the 975,000 jobs that economists expected and a steep slowdown from March’s hiring pace of 770,000.

“It was a bit of a shock when that headline number hit, but you realize most of, if not all of it, is the result not necessarily of demand, but supply," said Peter Essele, head of portfolio management for Commonwealth Financial Network. ”There seems to be a bit of a labor shortage at the moment."

The weak report jolted the bond market and initially sent yields tumbling. The yield on the 10-year Treasury briefly dropped below 1.49%, toward its lowest level in two months before recovering. By the market's close it was unchanged from 1.56% late Thursday.

Many analysts said they don’t want to put too much emphasis on just one month of discouraging data. They still expect the economy to strengthen mightily as coronavirus vaccinations roll out. The weak jobs number also bolsters the case for the Federal Reserve to keep interest rates low in hopes of boosting the jobs market.

The S&P 500 index rose 30.98 points to 4,232.60, its third straight gain. The Dow Jones Industrial Average gained 229.23 points, or 0.7%, to 34,777.76. The Nasdaq composite picked up 119.39 points, or 0.9%, to 13,752.24.

Small company stocks also got a solid bump. The Russell 2000 index outgained the major stock indexes, climbing 30.21 points, or 1.4%, to 2,271.63.

Low rates have been a huge reason for the stock market's recovery from its pandemic low in March 2020. One of the market's biggest fears in recent months has been that a supercharged economy could lead to higher, persistent inflation and force the Federal Reserve to raise rates. The central bank has been holding short-term rates at a record low and buying $120 billion in bonds every month.

After Friday morning's jobs report, investors pared back bets that the Federal Reserve will raise rates soon. Now they see just a 7% chance of an increase in the federal funds rate by the end of the year, down from the 15% probability they were seeing a month ago, according to CME Group.

The April jobs data also decreases the likelihood that the consumer price index will have much impact on the Fed's interest rate policy, even if the report shows a strong pickup in inflation, as economists expect, said Jay Hatfield, CEO of InfraCap Funds.

“We were pretty nervous about this report and the inflation report next week,” he said. “The Fed is probably on hold through the end of the summer, and that's extremely bullish.”

Stocks that have benefited most from low rates, including high-growth tech companies, helped lead the market on Friday. Microsoft rose 1.1%, and Nvidia gained 2% as the tech sector alone accounted for more than 25% of the S&P 500's gain.

Strong earnings reports also helped to boost the market, as companies continue to turn in blockbuster growth for the first three months of the year.

Expedia rose 5.2% after reporting a loss for the first quarter that wasn't as bad as Wall Street expected, and it had better revenue than forecast.

While the sharp slowdown in hiring could calm inflation fears, one measure in the jobs report also showed that wages rose more than economists expected last month.

In European stock markets, France's CAC 40 rose 0.5%, while Germany's DAX returned 1.3%. The FTSE 100 in London gained 0.8%.

In Asia, stocks in Shanghai fell 0.7% and Hong Kong's Hang Seng slipped 0.1%.

China reported its trade with the United States and the rest of the world surged by double digits in April as consumer demand recovered, but growth appeared to be slowing.

Japan's benchmark Nikkei 225 recouped early losses to edge up nearly 0.1%, while South Korea's Kospi gained 0.6%.

 

[bigdog]

ASX 200 futures pointing lower​

The Australian share market looks set to start the week with a small decline despite a solid finish on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the week 4 points lower this morning.

On Wall Street on Friday, the Dow Jones rose 0.65%, the S&P 500 climbed 0.75%, and the Nasdaq stormed 0.9%.

 

[bigdog]

Tech Sell-Off Drags Stocks Lower, Pulling Market Below Highs​

Drops in several Big Tech companies led the stock market lower Monday, pulling major indexes below the record highs they set last week.

A sell-off in technology companies dragged stocks lower on Wall Street Monday, pulling the major indexes back from their recent all-time highs.

The S&P 500 fell 1% after wobbling between small gains and losses the first half of the day. The decline broke a three-day winning streak for the benchmark index, which set a record high on Friday.

Big Tech companies, including Apple, Facebook, Amazon and Google's parent company, accounted for most of the index's decline. Communication stocks and companies that rely on consumer spending also helped pull the market lower, outweighing gains in household goods makers, utilities and other sectors.

The wave of selling handed the Nasdaq its worst day in more than seven weeks, as the index is heavily weighted with big technology stocks. The tech sector, which led the market's stunning comeback in 2020, now lags the other 10 sectors in the S&P 500 so far this year with a gain of 3.9%.

“You’ve had a tremendous run and there’s a lot of tech-focused stuff that’s up 70% to 100% in the last 12 months," said Andrew Mies, chief investment officer at investment advisory firm 6 Meridien. “The fact that some people are taking chips off the table is not surprising.”

The S&P 500 index, which notched a weekly gain in eight of the last 10 weeks, fell 44.17 points to 4,188.43. The Dow Jones Industrial Average dropped 34.94 points, or 0.1%, to 34,742.82. The blue chip index, which hit an all-time high on Friday for the third straight day, had traded higher for much of Monday, but dipped into the red in the last half-hour of trading.

The Nasdaq lost 350.38 points, or 2.5%, to 13,401.86. The index is up just under 4% so far this year, lagging well behind the S&P 500's 11.5% gain.

Small company stocks also had a rough day. The Russell 2000 index fell 58.93 points, or 2.6%, to 2,212.70.

Wall Street has been mostly rising in recent weeks amid expectations of an economic recovery and strong profits this year. Massive support from the U.S. government and the Federal Reserve, and increasingly positive economic data, have also encouraged investors to push stock prices to all-time highs, despite an undercurrent of worry about inflation and the potential for higher interest rates later this year.

The government's latest U.S. jobs report Friday showed employers added just 266,000 jobs in April, far fewer than the 975,000 economists were expecting. It was a steep drop from March’s hiring pace of 770,000. The weak jobs number suggests the economy is still in recovery mode and bolsters the case for the Federal Reserve to keep interest rates low.

But keeping interest rates low means the potential for more inflation down the road. Commodity prices spiked in early trading before settling down. Copper rose 5% in the early going before reversing to a loss of 0.7%. Platinum, which has several industrial uses, rose 0.1%. Investors will get some key inflation data this week, especially on Wednesday when April's consumer price index is released.

ASX 200 expected to sink

It looks set to be a difficult day for the Australian share market on Tuesday following a poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 59 points or 0.8% lower this morning. On Wall Street, the Dow Jones dropped 0.1%, the S&P 500 fell 1%, and the Nasdaq tumbled 2.55%.

Tech Sell-Off Drags Stocks Lower, Pulling Market Below Highs​

Drops in several Big Tech companies led the stock market lower Monday, pulling major indexes below the record highs they set last week.

By Associated Press

May 10, 2021, at 4:47 p.m.

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

A sell-off in technology companies dragged stocks lower on Wall Street Monday, pulling the major indexes back from their recent all-time highs.

The S&P 500 fell 1% after wobbling between small gains and losses the first half of the day. The decline broke a three-day winning streak for the benchmark index, which set a record high on Friday.

Big Tech companies, including Apple, Facebook, Amazon and Google's parent company, accounted for most of the index's decline. Communication stocks and companies that rely on consumer spending also helped pull the market lower, outweighing gains in household goods makers, utilities and other sectors.

The wave of selling handed the Nasdaq its worst day in more than seven weeks, as the index is heavily weighted with big technology stocks. The tech sector, which led the market's stunning comeback in 2020, now lags the other 10 sectors in the S&P 500 so far this year with a gain of 3.9%.

“You’ve had a tremendous run and there’s a lot of tech-focused stuff that’s up 70% to 100% in the last 12 months," said Andrew Mies, chief investment officer at investment advisory firm 6 Meridien. “The fact that some people are taking chips off the table is not surprising.”

The S&P 500 index, which notched a weekly gain in eight of the last 10 weeks, fell 44.17 points to 4,188.43. The Dow Jones Industrial Average dropped 34.94 points, or 0.1%, to 34,742.82. The blue chip index, which hit an all-time high on Friday for the third straight day, had traded higher for much of Monday, but dipped into the red in the last half-hour of trading.

The Nasdaq lost 350.38 points, or 2.5%, to 13,401.86. The index is up just under 4% so far this year, lagging well behind the S&P 500's 11.5% gain.

Small company stocks also had a rough day. The Russell 2000 index fell 58.93 points, or 2.6%, to 2,212.70.

Wall Street has been mostly rising in recent weeks amid expectations of an economic recovery and strong profits this year. Massive support from the U.S. government and the Federal Reserve, and increasingly positive economic data, have also encouraged investors to push stock prices to all-time highs, despite an undercurrent of worry about inflation and the potential for higher interest rates later this year.

The government's latest U.S. jobs report Friday showed employers added just 266,000 jobs in April, far fewer than the 975,000 economists were expecting. It was a steep drop from March’s hiring pace of 770,000. The weak jobs number suggests the economy is still in recovery mode and bolsters the case for the Federal Reserve to keep interest rates low.

But keeping interest rates low means the potential for more inflation down the road. Commodity prices spiked in early trading before settling down. Copper rose 5% in the early going before reversing to a loss of 0.7%. Platinum, which has several industrial uses, rose 0.1%. Investors will get some key inflation data this week, especially on Wednesday when April's consumer price index is released.

Inflation has been a concern for investors since bond yields spiked earlier this year, but yields have mostly stabilized since then. The yield on the 10-year Treasury rose to 1.61% from 1.57% late Friday.

Rising commodity prices are also starting to make a variety of everyday products more expensive. Analysts expect any increases in these measures going forward to be more mild and tied to the growing economy.

“This is more an effect of short-term confidence, not a long-term issue that we’re worried about,” said Andrea Bevis, senior vice president at UBS Private Wealth Management. “What matters most is what most prices are doing and we don't foresee a big move further.”

Though the employment market has been lagging the recovery, other measures show that the economy is pushing forward. Consumer confidence and retail sales have both been regaining ground as people get vaccinated and businesses reopen. Americans set a record for pandemic-era air travel on Sunday, according to The Transportation Security Administration.

Meanwhile, the most recent round of corporate earnings reports showed a broad recovery touching many different sectors and industries during the the first three months of the year. Much of that was anticipated ahead of the reports and investors are now far off from the next big round of results.

“I'm not surprised to see the market take a little bit of a pause,” Bevis said.

 

[bigdog]

Stocks pull back on Wall Street as inflation concerns grow

Banks and energy companies led a broad pullback for stocks Tuesday, knocking the Dow Jones Industrial Average more than 470 points lower and wiping out the market’s gains from last week.

The S&P 500 lost 0.9%. That, plus its losses Monday, outweigh the benchmark index’s gains last week. The Dow sank 1.4%, its worst day since Feb. 26. Treasury yields mostly edged higher.

The market’s downturn so far this week reflects growing worries among investors that inflation is rising. Any significant acceleration of inflation would be a drag on the overall market and could crimp the broader economic recovery. The selling comes ahead of a key measure of inflation at the consumer level due to be released by the government Wednesday.

Commodity prices have been rising, particularly for industrial metals such as copper and platinum, as well as for energy commodities like gasoline and crude oil. Tech stocks, which get most of their valuation from the future profits those companies are expected to earn, become less valuable if inflation decreases the value of those earnings.

Big technology companies were among the biggest decliners for a second straight day. Still, financial and energy companies, the best-performing sectors of the S&P 500 so far this year, fell the most. These sectors, in addition to industrials, have been favorites of investors betting that the economy will continue to recover from the pandemic. It’s not uncommon for the stocks that have notched the biggest gains over time to fall sharply when investors turn cautious.

“Yesterday, people were just watching to see what’s causing the market to move downward,” said Sam Stovall, chief investment strategist at CFRA. “Today the question is, ‘gee, maybe this could be more than I was expecting it to be,’ so investors are saying ‘let me take profits while I can.’”

The S&P 500 index lost 36.33 points to 4,152.19. The Dow fell 473.66 points to 34,269.16. The blue chip index hit an all-time high on Friday for the third straight day. The Nasdaq lost 12.43 points, or 0.1%, to 13,389.43.

Small company stocks also gave up some ground. The Russell 2000 index fell 5.71 points, or 0.3%, to 2,206.99.

Inflation has been a concern for investors since bond yields spiked earlier this year, though yields have mostly stabilized since then. The yield on the 10-year Treasury was steady at 1.61%. Despite reassurances from the Federal Reserve and a much weaker-than-expected U.S. jobs reading last week, investors have refocused on the potential for surging prices to pressure central banks into tapering off on their massive stimulus and ultra-low interest rates, analysts said.

The market is going through a period of “digestion” as the economy recovers and is due for some consolidation following a strong run, said Sunitha Thomas, national portfolio advisor at Northern Trust Wealth Management. Rising inflation isn’t unusual given the strong economic recovery along with a surge in company earnings, she said.

ASX 200 expected to fall​

It looks set to be another 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 39 points or 0.55% lower this morning.

This follows a poor night of trade on Wall Street which saw the Dow Jones fall 1.36%, the S&P 500 fall 0.87% and the Nasdaq drop 0.09%. The latter was down as much as 3.5% at one stage before rebounding.

https://apnews.com/article/asia-fin...mic-business-8f6f6efbf50db743b212031d2b700e90

Stocks pull back on Wall Street as inflation concerns grow

By DAMIAN J. TROISE and ALEX VEIGA

Banks and energy companies led a broad pullback for stocks Tuesday, knocking the Dow Jones Industrial Average more than 470 points lower and wiping out the market’s gains from last week.

The S&P 500 lost 0.9%. That, plus its losses Monday, outweigh the benchmark index’s gains last week. The Dow sank 1.4%, its worst day since Feb. 26. Treasury yields mostly edged higher.

The market’s downturn so far this week reflects growing worries among investors that inflation is rising. Any significant acceleration of inflation would be a drag on the overall market and could crimp the broader economic recovery. The selling comes ahead of a key measure of inflation at the consumer level due to be released by the government Wednesday.

Commodity prices have been rising, particularly for industrial metals such as copper and platinum, as well as for energy commodities like gasoline and crude oil. Tech stocks, which get most of their valuation from the future profits those companies are expected to earn, become less valuable if inflation decreases the value of those earnings.

Big technology companies were among the biggest decliners for a second straight day. Still, financial and energy companies, the best-performing sectors of the S&P 500 so far this year, fell the most. These sectors, in addition to industrials, have been favorites of investors betting that the economy will continue to recover from the pandemic. It’s not uncommon for the stocks that have notched the biggest gains over time to fall sharply when investors turn cautious.

“Yesterday, people were just watching to see what’s causing the market to move downward,” said Sam Stovall, chief investment strategist at CFRA. “Today the question is, ‘gee, maybe this could be more than I was expecting it to be,’ so investors are saying ‘let me take profits while I can.’”

The S&P 500 index lost 36.33 points to 4,152.19. The Dow fell 473.66 points to 34,269.16. The blue chip index hit an all-time high on Friday for the third straight day. The Nasdaq lost 12.43 points, or 0.1%, to 13,389.43.

Small company stocks also gave up some ground. The Russell 2000 index fell 5.71 points, or 0.3%, to 2,206.99.

Inflation has been a concern for investors since bond yields spiked earlier this year, though yields have mostly stabilized since then. The yield on the 10-year Treasury was steady at 1.61%. Despite reassurances from the Federal Reserve and a much weaker-than-expected U.S. jobs reading last week, investors have refocused on the potential for surging prices to pressure central banks into tapering off on their massive stimulus and ultra-low interest rates, analysts said.

The market is going through a period of “digestion” as the economy recovers and is due for some consolidation following a strong run, said Sunitha Thomas, national portfolio advisor at Northern Trust Wealth Management. Rising inflation isn’t unusual given the strong economic recovery along with a surge in company earnings, she said.

Rising inflation in commodities has begun to push prices for some consumer products higher. Still, analysts expect increases to be mild and tied to the growing economy, even as the jobs market lags behind. Consumer confidence and retail sales are regaining ground as people get vaccinated and businesses reopen.

Signals of inflation have popped up in other markets. China reported its strongest increase in producer prices since October 2017 last month, as supply constraints cascaded into manufacturing.

Meanwhile, the most recent round of corporate earnings reports showed a broad recovery touching many different sectors and industries during the the first three months of the year. Much of that was anticipated ahead of the reports and investors are now far off from the next big round of results.

 

[bigdog]

Stocks sink again on Wall Street as inflation worries mount

Inflation worries rattled Wall Street Wednesday, pulling the Dow Jones Industrial Average more than 680 points lower and placing the major stock indexes on track for their worst week in more than six months.

The selling came as investors reacted to a surprisingly big jump in inflation last month that stoked concerns that the economy may bounce back too fast from its pandemic-induced doldrums.

Tech giants, which had soared during the past year of lockdowns, took some of the biggest losses. Only energy stocks eked out a small gain.

Bond yields snapped higher after the government reported that consumer prices rose 0.8% in April, more than expected, and prices rose year-over-year at the fastest rate since 2008.

The yield on the 10-year Treasury note rose to 1.69% from 1.62% a day earlier, a big move. Bond yields rise when investors fear that an increase in inflation will erode the future value of the income that bonds pay.

“Inflation and interest rate jitters are hitting the market today, but for now the sell-off has been orderly,” said Cliff Hodge, chief investment officer for Cornerstone Wealth. “Letting some air out of these sky-high valuations is a positive going forward.”

The S&P 500 lost 89.06 points, or 2.1%, to 4,063.04, its biggest one-day drop since late February.

The Dow fell 681.50 points, or 2%, to 33,587.66, the worst decline for the blue chip index since late January. The Nasdaq gave up 357.75 points, or 2.7%, to 13,031.68. It was the tech-heavy index’s largest pullback since mid-March.

Small company stocks also gave up the most ground. The Russell 2000 index fell 71.85 points, or 3.3%, to 2,135.14.

Inflation concerns have been hitting the stock market hard this week. The S&P 500, Nasdaq and Dow are on track for their biggest weekly loss since Oct. 30. The Dow and S&P 500 had set all-time highs just last Friday.

Investors have been worrying that inflation could return after being absent for many years as the economy revs out of the recession brought on by the pandemic. Federal Reserve officials and other economists have said moderate inflation may actually be a good thing in a recovery.

While the latest reading on inflation was hotter than expected, the market shouldn’t be too surprised about inflation rising, said Jeff Buchbinder, equity strategist at LPL Financial. The prevailing sentiment is that rising inflation will be temporary, though “it’s too early to say whether these higher levels are going to be sustained,” he said.

The surge inflation is a reflection of the pent-up demand in the economy, said Terry DuFrene, global investment specialist at J.P. Morgan Private Bank.

“This is not a repeat of the 1980s, when we had hyperinflation,” he said. “This is not something that’s going to be permanent.”

ASX 200 expected to fall​

The Australian share market looks set to tumble lower again on Thursday following a selloff on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 33 points or 0.5% lower.

In the United States, the Dow Jones fell 1.99%, the S&P 500 dropped 2.14%, and the Nasdaq sank 2.67%. A strong inflation reading spooked investors.

https://apnews.com/article/asia-inf...ets-business-6ed9af7cd51b64e59a720409612e38b5

Stocks sink again on Wall Street as inflation worries mount

By DAMIAN J. TROISE and ALEX VEIGA

Inflation worries rattled Wall Street Wednesday, pulling the Dow Jones Industrial Average more than 680 points lower and placing the major stock indexes on track for their worst week in more than six months.

The selling came as investors reacted to a surprisingly big jump in inflation last month that stoked concerns that the economy may bounce back too fast from its pandemic-induced doldrums.

Tech giants, which had soared during the past year of lockdowns, took some of the biggest losses. Only energy stocks eked out a small gain.

Bond yields snapped higher after the government reported that consumer prices rose 0.8% in April, more than expected, and prices rose year-over-year at the fastest rate since 2008.

The yield on the 10-year Treasury note rose to 1.69% from 1.62% a day earlier, a big move. Bond yields rise when investors fear that an increase in inflation will erode the future value of the income that bonds pay.

“Inflation and interest rate jitters are hitting the market today, but for now the sell-off has been orderly,” said Cliff Hodge, chief investment officer for Cornerstone Wealth. “Letting some air out of these sky-high valuations is a positive going forward.”

The S&P 500 lost 89.06 points, or 2.1%, to 4,063.04, its biggest one-day drop since late February.

The Dow fell 681.50 points, or 2%, to 33,587.66, the worst decline for the blue chip index since late January. The Nasdaq gave up 357.75 points, or 2.7%, to 13,031.68. It was the tech-heavy index’s largest pullback since mid-March.

Small company stocks also gave up the most ground. The Russell 2000 index fell 71.85 points, or 3.3%, to 2,135.14.

Inflation concerns have been hitting the stock market hard this week. The S&P 500, Nasdaq and Dow are on track for their biggest weekly loss since Oct. 30. The Dow and S&P 500 had set all-time highs just last Friday.

Investors have been worrying that inflation could return after being absent for many years as the economy revs out of the recession brought on by the pandemic. Federal Reserve officials and other economists have said moderate inflation may actually be a good thing in a recovery.

While the latest reading on inflation was hotter than expected, the market shouldn’t be too surprised about inflation rising, said Jeff Buchbinder, equity strategist at LPL Financial. The prevailing sentiment is that rising inflation will be temporary, though “it’s too early to say whether these higher levels are going to be sustained,” he said.

The surge inflation is a reflection of the pent-up demand in the economy, said Terry DuFrene, global investment specialist at J.P. Morgan Private Bank.

“This is not a repeat of the 1980s, when we had hyperinflation,” he said. “This is not something that’s going to be permanent.”

Concerns about rising inflation also raise the question of whether the Federal Reserve will change its posture on maintaining low interest rates as the economy recovers. Buchbinder said investors shouldn’t expect that to happen any time soon, however, given that the economy, and particularly the job market, are still a long way from being fully recovered.

“Really the Fed has one mandate right now, which is to regain full employment, and it’s going to take some time,” Buchbinder said.

Analysts expect consumer prices to rise as the economy recovers, but higher prices could run the risk of curtailing some spending, which the economy needs to sustain its recovery. The cost of new cars rose 0.5% in April, the largest increase since last July, because of heavy demand and a computer chip shortage that has slowed production and reduced dealer supplies.

Rising inflation makes stocks seem more expensive, particularly high-value tech stocks that trade on the potential for their future profits in coming years. Apple, Microsoft and Amazon all fell more than 2%.

Tesla fell 4.4%, bringing its pullback so far this month to nearly 17%. That has the electric car maker’s stock on pace for its worst month since the pandemic plunge of March 2020, when it lost 21.6%.

Energy prices continued to climb following the shutdown of a major gas pipeline on the East Coast earlier in the week, and there are now reports of gasoline hoarding happening in places like North Carolina.

 

[bigdog]

Stocks climb after three days of losses, led by Big Tech

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street put the brakes on a three-day losing streak with a broad stock market rally Thursday powered by Big Tech companies and banks.

The S&P 500 notched a 1.2% gain, clawing back almost half of its loss from a day earlier, when it had its biggest one-day drop since February. Even so, the benchmark index is on track for a 2.8% weekly decline, which would be its largest since January. The other major indexes were also on pace for sharp weekly declines, despite recouping some of their losses.

Technology stocks led the gainers after sinking earlier in the week as investors fretted about signs of rising inflation. Apple, Microsoft, Facebook and Google’s parent company all rose. Financial companies also did well. JPMorgan Chase, Charles Schwab and Capital One Financial each rose more than 2%.

In a reversal from Wednesday, the energy sector was the only loser in the S&P 500 as oil prices fell sharply. It’s not uncommon for markets to reverse direction after sharp gains or losses over a period of days as investors reassess markets and pause during periods of volatility.

“Investors have kind of gotten conditioned about when there’s volatility and when there are pullbacks: step in and buy the dip, and you will be rewarded in short order,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

The S&P 500 gained 49.46 points to 4,112.50. The Dow Jones Industrial Average rose 433.79 points, or 1.3%, to 34,021.45. The Nasdaq, which is heavily weighted with technology stocks, climbed 93.31 points, or 0.7%, to 13,124.99.

Smaller company stocks, which for most of this year had outgained the broader market, also recovered some of their losses from earlier in the week. The Russell 2000 index picked up 35.81 points, or 1.7%, to 2,170.95.

Recent economic reports have left many investors uneasy. Last week’s jobs report showed fewer employers hiring than had been expected, and on Thursday the government reported that wholesale prices jumped 0.6% last month, driven by higher costs for services and food. That was more than expected and the latest indication that inflation pressures are mounting.

Rising prices reflect growing economic activity after last year’s global shutdown to fight the coronavirus pandemic. However investors worry inflation might disrupt the recovery or prompt central banks to withdraw stimulus and near-zero interest rates.

“The capital markets are clearly grappling in a tug of war,” said Bill Northey, senior investment director at U.S. Bank Wealth Management.

Investors have been questioning whether rising inflation will be something transitory, as the Federal Reserve has said, or something more durable that the Fed will have to address. Currently, the central bank has maintained low interest rates in order to help the economic recovery, but concerns are growing that it will have to shift its position if inflation starts running too hot.

“Is there something more durable being embedded within rising prices? The next several months will not likely resolve this debate,” Northey said.

Bond yields rose sharply this week in response to the data but pulled back slightly on Thursday. The yield on the 10-year Treasury note was 1.66% compared to 1.70% the day before.

In other markets, the price for Bitcoin plunged 10% after Tesla CEO Elon Musk reversed his earlier position on the digital currency and said the electric car maker would no longer accept it as payment.

The price of U.S. crude oil fell 3.4% after a key gasoline pipeline on the East Coast was reopened late Wednesday. The price of crude oil is now down slightly for the week. Energy stocks fell along with oil prices. Occidental Petroleum slid 5.6% for the biggest loss in the S&P 500.

ASX 200 expected to rebound​

The Australian share market looks set to end the week on a better note. According to the latest SPI futures, the ASX 200 is expected to open the day 46 points or 0.65% higher this morning.

This follows a solid night on Wall Street, which saw the Dow Jones jump 1.29%, the S&P 500 climb 1.22%, and the Nasdaq rise 0.72%.

 

[bigdog]

Stocks close higher with help from tech, still down for week

Stocks marched solidly higher again Friday, though the major indexes still ended with their worst weekly loss since February after a sharp pullback earlier in the week.

The S&P 500 rose 1.5%, its second straight gain. The gains were broad, though technology sector stocks powered much of the rally. Retailers, banks, communication companies and industrial stocks also helped lift the market. Energy stocks also rose as the price of U.S. crude oil climbed 2.4%. Treasury yields mostly fell.

Investors’ worries about the possibility of rising inflation as the U.S. economy recovers from the coronavirus pandemic fueled three days of heavy selling to start the week, and the major stock indexes were not able to make up all of those losses the last two days.

The S&P 500 lost 1.4% for the week, its first weekly decline in three weeks. The Nasdaq marked its fourth weekly pullback in a row, giving up 2.3%, while the Dow Jones Industrial Average lost 1.1% for the week.

The market’s rally the last two days reflects a mix of traders piling back into the market, which hit all-time highs just last week, to take advantage of lower stock prices, and a boost in confidence after the Centers for Disease Control and Prevention’s decision Thursday to ease mask-wearing guidance for fully vaccinated people. The move is expected to encourage more Americans to go out and spend money, speeding up the reopening of the economy.

“It’s just jittery markets,” said Chris Gaffney, president of TIAA Bank World Markets. “We’re going to continue to see this push-pull between good growth and reopening and inflation worries, that’s what’s causing this volatility.”

The S&P 500 gained 61.35 points to 4,173.85. The Dow rose 360.68 points, or 1.1%, to 34,382.13. The Nasdaq, where the losses this week have been steepest, added 304.99 points, or 2.3%, to 13,429.98.

Smaller company stocks, which for most of this year have outgained the broader market, also recovered some of their losses from earlier in the week. The Russell 2000 index picked up 53.68 points, or 2.5%, to 2,224.63.

Technology stocks led the gainers after sinking earlier in the week as investors fretted about signs of rising inflation. Apple, Microsoft, Facebook, Amazon.com and Google’s parent company all rose 1% or more.

https://apnews.com/article/asia-technology-business-55457cb93d12992c4c38222218fe2ca3

Stocks close higher with help from tech, still down for week

By ALEX VEIGA

Stocks marched solidly higher again Friday, though the major indexes still ended with their worst weekly loss since February after a sharp pullback earlier in the week.

The S&P 500 rose 1.5%, its second straight gain. The gains were broad, though technology sector stocks powered much of the rally. Retailers, banks, communication companies and industrial stocks also helped lift the market. Energy stocks also rose as the price of U.S. crude oil climbed 2.4%. Treasury yields mostly fell.

Investors’ worries about the possibility of rising inflation as the U.S. economy recovers from the coronavirus pandemic fueled three days of heavy selling to start the week, and the major stock indexes were not able to make up all of those losses the last two days.

The S&P 500 lost 1.4% for the week, its first weekly decline in three weeks. The Nasdaq marked its fourth weekly pullback in a row, giving up 2.3%, while the Dow Jones Industrial Average lost 1.1% for the week.

The market’s rally the last two days reflects a mix of traders piling back into the market, which hit all-time highs just last week, to take advantage of lower stock prices, and a boost in confidence after the Centers for Disease Control and Prevention’s decision Thursday to ease mask-wearing guidance for fully vaccinated people. The move is expected to encourage more Americans to go out and spend money, speeding up the reopening of the economy.

“It’s just jittery markets,” said Chris Gaffney, president of TIAA Bank World Markets. “We’re going to continue to see this push-pull between good growth and reopening and inflation worries, that’s what’s causing this volatility.”

The S&P 500 gained 61.35 points to 4,173.85. The Dow rose 360.68 points, or 1.1%, to 34,382.13. The Nasdaq, where the losses this week have been steepest, added 304.99 points, or 2.3%, to 13,429.98.

Smaller company stocks, which for most of this year have outgained the broader market, also recovered some of their losses from earlier in the week. The Russell 2000 index picked up 53.68 points, or 2.5%, to 2,224.63.

Disney fell 2.6% after reporting lower revenue and missing forecasts for growth in subscriber additions to its video streaming service. Disney had been adding subscribers at a breakneck pace the past year, helped by popular shows like “The Mandalorian” and the pandemic, which kept many Americans at home with little to do except watch TV.

DoorDash vaulted 22.1% after after the company said its revenues tripled from a year ago, helped by homebound Americans ordering in.

Technology stocks led the gainers after sinking earlier in the week as investors fretted about signs of rising inflation. Apple, Microsoft, Facebook, Amazon.com and Google’s parent company all rose 1% or more.

Investors have been questioning whether rising inflation will be something temporary, as the Federal Reserve has said, or something more durable that the Fed will have to address. The central bank has kept interest rates low to aid the recovery, but concerns are growing that it will have to shift its position if inflation starts running too hot.

“There’s certainly a lot to be happy about in the reopening and earnings pictures, but at the same time there’s a lot to be worried about if inflation, if these price increases remain and it forces the Fed to act quicker than they want to,” Gaffney said. “That could put a quick halt to the (stock market) rally.”

Data from Commerce Department on Friday showed Americans kept up their share of retail purchases in April, helped by the stimulus checks that have gone out in the last few weeks. However, economists expected retail sales figures to be slightly higher for the month. Sales were up at restaurants and bars in the month, according to the data.

In other economic data, industrial production, which includes output at factories, mines and utilities, rose 0.7% last month, down from a sharp increase of 2.4% in March, the Federal Reserve reported Friday. Auto production fell 4.3% in April, largely because car makers can’t find enough semiconductors. But the output of computers, electrical equipment and appliances, machinery, and metals such as steel all increased.

Bond yields have risen sharply this week but pulled back slightly on Friday. The yield on the 10-year Treasury fell to 1.63% from 1.66% a day earlier.

 

[bigdog]

ASX 200 futures pointing higher​

The Australian share market looks set to start the week on a positive note following a strong finish on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the week 48 points or 07% higher this morning.

In the United States on Friday, the Dow Jones rose 1.05%, the S&P 500 climbed 1.5%, and the Nasdaq stormed 2.3%. The latter could be good news for tech shares today.

 

[bigdog]

US stocks slip further from records amid inflation fears

U.S. stocks slipped on Monday, tacking more losses onto last week’s stumble, as worries about inflation continue to dog Wall Street.

The S&P 500 dipped 10.56, or 0.3%, to 4,163.29, with tech stocks and other former market darlings once again taking the brunt of the losses. The benchmark index is coming off a 1.4% weekly drop from its record high, which would have been even worse if not for a late rebound.

The Dow Jones Industrial Average fell 54.34, or 0.2%, to 34,327.79, while the Nasdaq composite lost 50.93, or 0.4%, to 13,379.05.

Most stocks in the S&P 500 fell, but pockets of strength dotted around the market helped limit the damage. Energy stocks jumped as the price of crude oil rose, while producers of metals and other raw materials also climbed. The Russell 2000 index of smaller stocks inched up 2.49, or 0.1%, to 2,227.12.

They’re the latest back-and-forth eddies for a market swept up in worries about whether rising inflation will prove to be only temporary or longer lasting, as well as enthusiasm about a recovering economy. Prices are rising for everything from auto insurance to restaurant meals as the economy leaps out of last year’s pandemic-induced coma.

If inflation does end up being more than a blip, the fear is that the Federal Reserve will have to dial back the extensive support it’s providing to markets. That includes record-low interest rates and the monthly purchase of $120 billion in bonds meant to goose the job market and economy.

The yield on the 10-year Treasury has shot higher this year amid the inflation fears. It was at 1.65% late Monday, up from 1.63% at the end of last week. It began the year close to 0.90%.

Higher interest rates drag on most of the stock market, but they hit particularly hard on stocks seen as the most expensive and those bid up for profits expected far in the future.

That has put extra pressure on tech stocks and companies promising the allure of big growth, which have been leading the market for years. Apple, Microsoft and Tesla were three of the heaviest weights on the S&P 500 Monday, falling between 0.9% and 2.2%.

In recent weeks, blowout profit reports from tech titans and much of the rest of corporate America have helped validate the huge run stocks have been on for more than a year. The economy continues to strengthen as COVID-19 vaccinations roll out, and the S&P 500 roared to an 11.3% gain in the first four months of the year. That’s a bigger gain than the market has had in half of the last 20 full years.

European stock markets were mostly lower, while Asian markets ended mixed.

ASX 200 expected to rise​

The Australian share market looks set to push higher on Tuesday despite a poor 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 0.2% higher this morning.

On Wall Street, the Dow Jones dropped 0.16%, the S&P 500 fell 0.25%, and the Nasdaq tumbled 0.38%.

https://apnews.com/article/singapor...rus-pandemic-35a66cf39abc4a107ac01236c1742719

US stocks slip further from records amid inflation fears

By DAMIAN J. TROISE and STAN CHOE

U.S. stocks slipped on Monday, tacking more losses onto last week’s stumble, as worries about inflation continue to dog Wall Street.

The S&P 500 dipped 10.56, or 0.3%, to 4,163.29, with tech stocks and other former market darlings once again taking the brunt of the losses. The benchmark index is coming off a 1.4% weekly drop from its record high, which would have been even worse if not for a late rebound.

The Dow Jones Industrial Average fell 54.34, or 0.2%, to 34,327.79, while the Nasdaq composite lost 50.93, or 0.4%, to 13,379.05.

Most stocks in the S&P 500 fell, but pockets of strength dotted around the market helped limit the damage. Energy stocks jumped as the price of crude oil rose, while producers of metals and other raw materials also climbed. The Russell 2000 index of smaller stocks inched up 2.49, or 0.1%, to 2,227.12.

They’re the latest back-and-forth eddies for a market swept up in worries about whether rising inflation will prove to be only temporary or longer lasting, as well as enthusiasm about a recovering economy. Prices are rising for everything from auto insurance to restaurant meals as the economy leaps out of last year’s pandemic-induced coma.

If inflation does end up being more than a blip, the fear is that the Federal Reserve will have to dial back the extensive support it’s providing to markets. That includes record-low interest rates and the monthly purchase of $120 billion in bonds meant to goose the job market and economy.

The yield on the 10-year Treasury has shot higher this year amid the inflation fears. It was at 1.65% late Monday, up from 1.63% at the end of last week. It began the year close to 0.90%.

Higher interest rates drag on most of the stock market, but they hit particularly hard on stocks seen as the most expensive and those bid up for profits expected far in the future.

That has put extra pressure on tech stocks and companies promising the allure of big growth, which have been leading the market for years. Apple, Microsoft and Tesla were three of the heaviest weights on the S&P 500 Monday, falling between 0.9% and 2.2%.

In recent weeks, blowout profit reports from tech titans and much of the rest of corporate America have helped validate the huge run stocks have been on for more than a year. The economy continues to strengthen as COVID-19 vaccinations roll out, and the S&P 500 roared to an 11.3% gain in the first four months of the year. That’s a bigger gain than the market has had in half of the last 20 full years.

“History says whenever we’ve had such a strong start to the year we tend to take a break and digest some of those gains,” said Sam Stovall, chief investment strategist at CFRA. “In many ways this is fairly natural.”

For all the worries about inflation, many professional investors are echoing the Federal Reserve in saying that they expect rising prices to remain only “transitory.” Many analysts along Wall Street also expect the strong profit growth for companies to continue through the year as the economy and job market improve. That should help to support stock prices, though it may not give a big further boost after shares surged last year when profits cratered.

Steelmakers made some of the market’s strongest gains on Monday following the suspension of key measures in a tariff dispute between the U.S. and European Union. Nucor rose 3.7%, and U.S. Steel rose 3.4%.

AT&T slipped 2.7%, and Class A shares of Discovery dropped 5% after the companies announced a $43 billion deal that will combine several major media and streaming entertainment businesses. The new company folds in AT&T’s CNN and HBO channels with Discovery’s Food Network and HGTV.

European stock markets were mostly lower, while Asian markets ended mixed.

 

[bigdog]

A late drop leaves Wall Street indexes lower, led by tech

Stocks closed lower on Wall Street Tuesday as a late-afternoon sell-off in technology companies helped nudge stock indexes into the red for the second straight day.

The S&P 500 lost 0.9%, with most of the pullback coming in the last hour of trading. Apple, Facebook and Google’s parent company all lost 1% or more as technology stocks fell broadly. While they powered the market rebound last year, tech stocks are up only 2.6% this year, the lowest gain among the S&P 500′s 11 sectors.

Banks, industrial and communication companies also helped drag the market lower, easily outweighing small gains by health care stocks, among others. Energy companies fell the most as the price of U.S. crude oil fell 1.2%. Treasury yields held steady.

Investors continued to size up the latest batch of company earnings reports, including quarterly snapshots from Walmart and Home Depot.

Wall Street is also weighing the possibility of more inflation later this year and economic recovery as the coronavirus pandemic eases. That balancing act has contributed to a market pullback this month.

“Stocks appear to be in consolidation mode, digesting strong year-to-date gains on the heels of a superb first-quarter reporting period,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “We view this pullback that we’re experiencing over the last week or so as within the normal ebb and flow of a broad market that still has legs to trend higher.”

The S&P 500 lost 35.46 points to 4,127.83. The Dow Jones Industrial Average fell 267.13 points, or 0.8%, to 34,060.66. The tech-heavy Nasdaq dropped 75.41 points, or 0.6%, to 13,303.64. The Russell 2000 index of small company stocks gave up 16.24 points, or 0.7%, to 2,210.88. Each of the indexes had been up at some point in the early going.

The broader market made solid gains early in the year as investors bet on an economic recovery fueled by widespread vaccinations. Expectations were high for corporate earnings and the latest round of results has been surprisingly good. Wall Street is now digesting that growth and shifting to a more cautious view.

“Some sort of pause was always inevitable,” said Ross Mayfield, investment strategist at Baird. “Eventually markets see a more challenging landscape ahead and general uncertainty.”

Investors have been worried about whether rising inflation will prove to be either temporary or whether it will endure. Prices are rising for everything from gasoline to food as the economy recovers from its more than year-long malaise.

ASX 200 expected to fall​

It looks set to be another disappointing 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 74 points or 1.05% lower this morning.

This follows a poor night of trade on Wall Street which saw the Dow Jones fall 0.78%, the S&P 500 drop 0.85% and the Nasdaq fall 0.56%.

https://apnews.com/article/asia-inf...rus-pandemic-ce66b85d1e13fe296c5c3f9cc9b43f1d

A late drop leaves Wall Street indexes lower, led by tech

By DAMIAN J. TROISE and ALEX VEIGA

Stocks closed lower on Wall Street Tuesday as a late-afternoon sell-off in technology companies helped nudge stock indexes into the red for the second straight day.

The S&P 500 lost 0.9%, with most of the pullback coming in the last hour of trading. Apple, Facebook and Google’s parent company all lost 1% or more as technology stocks fell broadly. While they powered the market rebound last year, tech stocks are up only 2.6% this year, the lowest gain among the S&P 500′s 11 sectors.

Banks, industrial and communication companies also helped drag the market lower, easily outweighing small gains by health care stocks, among others. Energy companies fell the most as the price of U.S. crude oil fell 1.2%. Treasury yields held steady.

Investors continued to size up the latest batch of company earnings reports, including quarterly snapshots from Walmart and Home Depot.

Wall Street is also weighing the possibility of more inflation later this year and economic recovery as the coronavirus pandemic eases. That balancing act has contributed to a market pullback this month.

“Stocks appear to be in consolidation mode, digesting strong year-to-date gains on the heels of a superb first-quarter reporting period,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “We view this pullback that we’re experiencing over the last week or so as within the normal ebb and flow of a broad market that still has legs to trend higher.”

The S&P 500 lost 35.46 points to 4,127.83. The Dow Jones Industrial Average fell 267.13 points, or 0.8%, to 34,060.66. The tech-heavy Nasdaq dropped 75.41 points, or 0.6%, to 13,303.64. The Russell 2000 index of small company stocks gave up 16.24 points, or 0.7%, to 2,210.88. Each of the indexes had been up at some point in the early going.

The broader market made solid gains early in the year as investors bet on an economic recovery fueled by widespread vaccinations. Expectations were high for corporate earnings and the latest round of results has been surprisingly good. Wall Street is now digesting that growth and shifting to a more cautious view.

“Some sort of pause was always inevitable,” said Ross Mayfield, investment strategist at Baird. “Eventually markets see a more challenging landscape ahead and general uncertainty.”

Investors have been worried about whether rising inflation will prove to be either temporary or whether it will endure. Prices are rising for everything from gasoline to food as the economy recovers from its more than year-long malaise.

The fear is that the Federal Reserve will have to dial back the extensive support if inflation persists. That includes record-low interest rates and the monthly purchase of $120 billion in bonds meant to goose the job market and economy. For all the worries about inflation, many professional investors are echoing the Federal Reserve in saying that they expect rising prices to be “transitory.”

“I don’t think we’re entering a new period of structurally higher inflation, but at the same time its impossible to say it’s not one of the main risks investors face,” Mayfield said.

Higher interest rates drag on most of the stock market, but they are particularly painful for stocks considered the most expensive and those bid up for profits expected far into the future. This mostly involves technology stocks, which rose sharply last year and are valued highly on the future profits those companies could bring in.

Investors have been able to draw encouragement from company earnings reports, which have been surprisingly good.

“By most metrics you’re seeing company financials reflect an economy that’s starting to open up and that’s consistent with economic growth,” Sandven said.

Retailers are among the last companies to report first-quarter results, with several of them set to do so this week, including Target and Lowe’s.

On Tuesday, Walmart rose 2.2% after the giant retailer’s results beat estimates as online shopping saw significant growth from a year ago, driven in part by Americans buying online in the pandemic.

AT&T fell 5.8% for the biggest decline in the S&P 500 and continued a two-day slide after the company announced it would spin off its Warner media assets into a new company with Discovery Communications. AT&T only finished acquiring Warner, which includes HBO, CNN, DC Comics and other iconic properties, in 2018 and its new CEO is pulling an about-face on his predecessor’s decisions.

 

[bigdog]

Stocks fall for a 3rd day; Bitcoin sinks after a wild ride

Wall Street racked up more losses Wednesday as the stock market pulled back for the third straight day. The broad sell-off went beyond stocks, with the price of Bitcoin and other cryptocurrencies falling sharply.

The S&P 500 index dropped 0.3% after recovering from a 1.6% slide earlier in the day. The benchmark index is on track for its second weekly loss in a row.

Bank stocks were among the biggest decliners. Goldman Sachs fell 1.7% and Wells Fargo lost 1.5%. A range of retailers and other companies that rely directly on consumer spending also pulled the market lower. Home Depot slid 0.7%, Gap fell 3% and L Brands dropped 3.1%.

Energy sector stocks, the biggest gainers so far this year, bore the heaviest losses as the price of U.S. crude oil skidded 3.5%.

Digital currencies fell sharply after China’s banking association issued a warning over the risks associated with digital currencies. A statement posted on the industry association’s website said all members should “resolutely refrain from conducting or participating in any business activities related to virtual currencies.”

“Stocks and cryptocurrencies have been showing signs of froth over the past few months and were due for a pullback,” said Richard Saperstein, chief investment officer of Treasury Partners.

The S&P 500 lost 12.15 points to 4,115.68. The Dow Jones Industrial Average fell 164.62 points, or 0.5%, to 33,896.04. The blue-chip index had been down 586 points. The Nasdaq fared better than the rest of the market, shedding only 3.90 points, or less than 0.1%, to 13,299.74.

Smaller company stocks also lost ground. The Russell 2000 index gave up 17.24 points, or 0.8%, to 2,193.64.

Bitcoin’s price was down 10.8% to $38,723, well below its all-time high of over $64,800 reached a month ago, according to the crypto news site Coindesk. It swung in a huge range of as low as $30,202 and as high as $43,621 over the course of the day.

That the headline out of China rattled crypto investors suggests the market was already weak, said Willie Delwiche, investment strategist at All Star Charts.

“If Bitcoin had been holding up better, a headline like that would be dismissed more readily, but it comes at a time when Bitcoin was already well off its highs,” he said. “It gave people who were looking for a reason to sell cover.”

The Bitcoin skid comes after longtime Bitcoin advocate Tesla recently recently said it would no longer accept Bitcoin as payment for its cars, reversing its earlier position.

The selling was so intense that the web site of Coinbase, an online brokerage for digital currencies, was temporarily down in the morning. Coinbase’s stock dropped 5.9%, ending about 34% below the peak it reached on April 16, just two days after its IPO.

ASX 200 expected to edge higher
The Australian share market looks set for a subdued day on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points higher this morning.

On Wall Street, the Dow Jones fell 0.48%, the S&P 500 dropped 0.29%, and the Nasdaq edged slightly lower.

https://apnews.com/article/asia-bit...c-technology-fdab9913edf962295f7c12589e3ee199

Stocks fall for a 3rd day; Bitcoin sinks after a wild ride

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street racked up more losses Wednesday as the stock market pulled back for the third straight day. The broad sell-off went beyond stocks, with the price of Bitcoin and other cryptocurrencies falling sharply.

The S&P 500 index dropped 0.3% after recovering from a 1.6% slide earlier in the day. The benchmark index is on track for its second weekly loss in a row.

Bank stocks were among the biggest decliners. Goldman Sachs fell 1.7% and Wells Fargo lost 1.5%. A range of retailers and other companies that rely directly on consumer spending also pulled the market lower. Home Depot slid 0.7%, Gap fell 3% and L Brands dropped 3.1%.

Energy sector stocks, the biggest gainers so far this year, bore the heaviest losses as the price of U.S. crude oil skidded 3.5%.

Digital currencies fell sharply after China’s banking association issued a warning over the risks associated with digital currencies. A statement posted on the industry association’s website said all members should “resolutely refrain from conducting or participating in any business activities related to virtual currencies.”

“Stocks and cryptocurrencies have been showing signs of froth over the past few months and were due for a pullback,” said Richard Saperstein, chief investment officer of Treasury Partners.

The S&P 500 lost 12.15 points to 4,115.68. The Dow Jones Industrial Average fell 164.62 points, or 0.5%, to 33,896.04. The blue-chip index had been down 586 points. The Nasdaq fared better than the rest of the market, shedding only 3.90 points, or less than 0.1%, to 13,299.74.

Smaller company stocks also lost ground. The Russell 2000 index gave up 17.24 points, or 0.8%, to 2,193.64.

Bitcoin’s price was down 10.8% to $38,723, well below its all-time high of over $64,800 reached a month ago, according to the crypto news site Coindesk. It swung in a huge range of as low as $30,202 and as high as $43,621 over the course of the day.

That the headline out of China rattled crypto investors suggests the market was already weak, said Willie Delwiche, investment strategist at All Star Charts.

“If Bitcoin had been holding up better, a headline like that would be dismissed more readily, but it comes at a time when Bitcoin was already well off its highs,” he said. “It gave people who were looking for a reason to sell cover.”

The Bitcoin skid comes after longtime Bitcoin advocate Tesla recently recently said it would no longer accept Bitcoin as payment for its cars, reversing its earlier position.

The selling was so intense that the web site of Coinbase, an online brokerage for digital currencies, was temporarily down in the morning. Coinbase’s stock dropped 5.9%, ending about 34% below the peak it reached on April 16, just two days after its IPO.

Investors continue to be focused on whether rising inflation will be temporary or whether it will endure. Prices are rising for everything from gasoline to food as the economy recovers from its more than year-long malaise.

The Federal Reserve expects that rising inflation will be temporary and related to the recovering economy, but investors are still uncertain and have been more cautious.

“That’s one of the things people are struggling with,” said J.J. Kinahan, chief strategist with TD Ameritrade. “They go to get gas and get in line at a grocery store and they see higher prices; there’s this mixed message for the average investor.”

The fear is that the Federal Reserve will have to dial back its extensive support if inflation persists. That includes record-low interest rates and the monthly purchase of $120 billion in bonds meant to goose the job market and economy.

The minutes from the central bank’s April meeting of policymakers, which were released Wednesday afternoon, reaffirmed the view that the Fed’s decision to keep its benchmark interest rate ultra-low remains the best policy approach, though some officials cautioned that some factors pushing inflation higher may not be resolved quickly.

For all the worries about inflation, however, many professional investors are echoing the Federal Reserve in saying that they expect rising prices to be “transitory.”

Higher interest rates drag on most of the stock market, but they are particularly painful for stocks, especially technology shares, considered the most expensive and those bid up for profits expected far into the future.

Treasury yields mostly rose. The yield on the 10-year Treasury note rose to 1.67% from 1.64% late Tuesday.

Target gained 6.1% after reporting strong results as consumers, some flush with U.S. stimulus payments, were eager to spend as the pandemic eases.

 

[bigdog]

Stocks End Higher on Wall Street, Breaking a 3-Day Slump

Stock closed higher on Wall Street Thursday, ending a three-day losing streak.

Technology companies led broad gains for stocks on Wall Street Thursday, ending a three-day losing streak for major U.S. indexes.

The S&P 500 gained 1.1%. The benchmark index is still on track for its second straight weekly loss.

Technology and communications stocks accounted for much of the market rally. Apple rose 2.1% and Google’s parent, Alphabet, rose 1.6%. Nearly every sector in the S&P 500 made gains, though a drop in oil prices dragged energy sector stocks lower. The sector remains the biggest gainer so far this year with a 36% gain.

Investors continue to be focused on the potential for inflation down the road. Prices for everything from gasoline to lumber have been rising sharply this year as the economy reheats after the pandemic, and investors have been worried that high inflation may cause the Federal Reserve to pull back on its stimulus efforts.

“There’s a bit of churning going on in the markets,” said Tom Martin, senior portfolio manager with Globalt Investments. “Here we are near all-time highs on the S&P 500, and there’s so much uncertainty about what is actually happening with inflation, how long it’s going to last and how the Fed will react.”

The S&P 500 rose 43.44 points to 4,159.12. The Dow Jones Industrial Average added 188.11 points, or 0.6%, to 34,084.15. The technology heavy Nasdaq fared better than the rest of the market, climbing 236 points, or 1.8%, to 13,535.74.

Small company stocks also notched gains. The Russell 2000 index picked up 14.12 points, or 0.6%, to 2,207.76.

Several retailers were among the biggest decliners in the S&P 500. Gap dropped 1.4%, while L Brands skidded 2.6%. Ross Stores lost 2.7%.

Digital currencies fell sharply Wednesday after China’s banking association issued a warning over the risks associated with digital currencies. On Thursday the price of Bitcoin regained some ground, adding 4.4% to roughly $40,213, according to the online brokerage Coinbase.

ASX 200 expected to rise again​

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 36 points or 0.5% higher this morning.

This follows a solid night on Wall Street, which saw the Dow Jones rise 0.55%, the S&P 500 climb 1.06%, and the Nasdaq storm 1.77% higher.

https://www.usnews.com/news/busines...ian-shares-mixed-after-retreat-on-wall-street

Stocks End Higher on Wall Street, Breaking a 3-Day Slump​

Stock closed higher on Wall Street Thursday, ending a three-day losing streak.

By Associated Press

May 20, 2021, at 4:33 p.m.

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

Technology companies led broad gains for stocks on Wall Street Thursday, ending a three-day losing streak for major U.S. indexes.

The S&P 500 gained 1.1%. The benchmark index is still on track for its second straight weekly loss.

Technology and communications stocks accounted for much of the market rally. Apple rose 2.1% and Google’s parent, Alphabet, rose 1.6%. Nearly every sector in the S&P 500 made gains, though a drop in oil prices dragged energy sector stocks lower. The sector remains the biggest gainer so far this year with a 36% gain.

Investors continue to be focused on the potential for inflation down the road. Prices for everything from gasoline to lumber have been rising sharply this year as the economy reheats after the pandemic, and investors have been worried that high inflation may cause the Federal Reserve to pull back on its stimulus efforts.

“There’s a bit of churning going on in the markets,” said Tom Martin, senior portfolio manager with Globalt Investments. “Here we are near all-time highs on the S&P 500, and there’s so much uncertainty about what is actually happening with inflation, how long it’s going to last and how the Fed will react.”

The S&P 500 rose 43.44 points to 4,159.12. The Dow Jones Industrial Average added 188.11 points, or 0.6%, to 34,084.15. The technology heavy Nasdaq fared better than the rest of the market, climbing 236 points, or 1.8%, to 13,535.74.

Small company stocks also notched gains. The Russell 2000 index picked up 14.12 points, or 0.6%, to 2,207.76.

Several retailers were among the biggest decliners in the S&P 500. Gap dropped 1.4%, while L Brands skidded 2.6%. Ross Stores lost 2.7%.

The number of Americans seeking unemployment aid fell last week to 444,000, a new pandemic low and a sign that the job market keeps strengthening as consumers spend freely again, viral infections drop and business restrictions ease.

Part of that decline may be fueled by Republican governors who have opted not to allow their residents to claim the $300-a-week supplemental benefit that came with the latest economic relief package. The move could be pushing more people back into the labor market.

Treasury yields mostly fell, despite the positive economic data. The yield on the 10-year Treasury note slipped to 1.63% from 1.67% late Wednesday.

Oatly, the largest maker of oat milk in the world, jumped 18.8% on its first day of trading on the Nasdaq Stock Exchange. The company raised $1.5 billion as part of its initial public offering.

Digital currencies fell sharply Wednesday after China’s banking association issued a warning over the risks associated with digital currencies. On Thursday the price of Bitcoin regained some ground, adding 4.4% to roughly $40,213, according to the online brokerage Coinbase.

 

[bigdog]

Stocks end a wobbly day mixed; S&P 500 posts a weekly loss

Wall Street racked up more losses Friday on a choppy day of trading that left the major indexes mixed and the S&P 500 with its second straight weekly decline.

The S&P 500 ended 0.1% lower after having been up 0.7% in the early going. The benchmark index, which hit an all-time high two weeks ago, lost 0.4% this week. That follows a 1.4% loss last week.

Gains for banks and health care companies were kept in check by drops in technology stocks and in companies like Tesla, McDonald’s and Amazon.com that rely directly on consumer spending. Energy stocks eked out a small gain as the price of U.S. crude oil rose. Treasury yields were mixed.

The market’s latest bout of selling come as investors remain focused on the possibility of inflation as the economy stirs to life following more than a year of shutdowns related to the COVID-19 pandemic.

“The market is trying to digest signs of incipient inflation that may be more than transitory, with what the Fed’s reaction might be,” said Alicia Levine, chief strategist at BNY Mellon Investment Management.

The S&P 500 slipped 3.26 points to 4,155.86, while the Nasdaq slid 64.75 points, or 0.5%, to 13,470.99. The Dow Jones Industrial Average fared better, gaining 123.69 points, or 0.4%, to 34,207.84.

Small company stocks also notched gains. The Russell 2000 index picked up 7.51 points, or 0.3%, to 2,215.27.

The market’s pullback this month reflects heightened unease among traders that rising inflation may prompt central banks to pull back on their efforts to support job growth before the economic recovery is fully realized. The Federal Reserve has said it expects any bump in inflation to be temporary, though investors are uncertain about how hot inflation could become.

Analysts have also said investors are looking further ahead, beyond the recovery, and wary about potential tax changes and the impact they may have on growth.

The U.S. Treasury Department supports a global minimum corporate tax rate of at least 15% as part of an effort to end what it calls “a race to the bottom” as countries compete with each other to cut corporate tax rates and lure multinational companies.

https://apnews.com/article/asia-tec...mic-business-e2badffd697545ea7faf05c15d9fa4a7

Stocks end a wobbly day mixed; S&P 500 posts a weekly loss

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street racked up more losses Friday on a choppy day of trading that left the major indexes mixed and the S&P 500 with its second straight weekly decline.

The S&P 500 ended 0.1% lower after having been up 0.7% in the early going. The benchmark index, which hit an all-time high two weeks ago, lost 0.4% this week. That follows a 1.4% loss last week.

Gains for banks and health care companies were kept in check by drops in technology stocks and in companies like Tesla, McDonald’s and Amazon.com that rely directly on consumer spending. Energy stocks eked out a small gain as the price of U.S. crude oil rose. Treasury yields were mixed.

The market’s latest bout of selling come as investors remain focused on the possibility of inflation as the economy stirs to life following more than a year of shutdowns related to the COVID-19 pandemic.

“The market is trying to digest signs of incipient inflation that may be more than transitory, with what the Fed’s reaction might be,” said Alicia Levine, chief strategist at BNY Mellon Investment Management.

The S&P 500 slipped 3.26 points to 4,155.86, while the Nasdaq slid 64.75 points, or 0.5%, to 13,470.99. The Dow Jones Industrial Average fared better, gaining 123.69 points, or 0.4%, to 34,207.84.

Small company stocks also notched gains. The Russell 2000 index picked up 7.51 points, or 0.3%, to 2,215.27.

The market’s pullback this month reflects heightened unease among traders that rising inflation may prompt central banks to pull back on their efforts to support job growth before the economic recovery is fully realized. The Federal Reserve has said it expects any bump in inflation to be temporary, though investors are uncertain about how hot inflation could become.

Analysts have also said investors are looking further ahead, beyond the recovery, and wary about potential tax changes and the impact they may have on growth.

The U.S. Treasury Department supports a global minimum corporate tax rate of at least 15% as part of an effort to end what it calls “a race to the bottom” as countries compete with each other to cut corporate tax rates and lure multinational companies.

Solid earnings helped lift several companies Friday. Foot Locker rose 2% after reporting solid first-quarter earnings and revenue. Agricultural equipment maker Deere gained 1.3% after beating Wall Street’s fiscal second-quarter profit forecasts.

Oatmilk maker Oatly rose another 11.2%, following the 19% climb it made a day earlier on its first day of trading.

Nvidia, the graphics card and chip manufacturer, rose 2.6% after the company announced a four-for-one stock split. Nvidia was one of the biggest gainers of 2020.

Treasury yields were mostly stable. The yield on the 10-year Treasury note fell to 1.62% from 1.63% late Thursday.

The price of Bitcoin also turned choppy following headlines out of China, where a government official said in a statement that the country is focused on cracking down on Bitcoin “mining and trading behavior.”

Earlier this week, the price of Bitcoin and other digital currencies fell sharply after China’s banking association issued a warning over the risks associated with digital currencies. The price of Bitcoin gave up 12% to about $35,412, according to crypto news and information site Coindesk.

 

[bigdog]

ASX 200 futures pointing lower​

The Australian share market looks set to start the week on a subdued note. According to the latest SPI futures, the ASX 200 is expected to open the week 5 points or 0.1% lower this morning following a mixed finish on Wall Street.

In the United States on Friday, the Dow Jones rose 0.35%, the S&P 500 fell 0.1%, and the Nasdaq tumbled 0.5%.

 

[bigdog]

Stocks climb on Wall Street as appetite for risk returns

Stocks closed higher on Wall Street Monday, and the broad rally helped the S&P 500 claw back more than half of its losses over the past two weeks.

The benchmark index rose 1%, led by solid gains in technology and communication companies such as Microsoft, Google’s parent company, Facebook and Twitter. A variety of companies that rely on direct consumer spending also made solid gains. Sectors that are viewed as safer investments, like utilities, lagged the broader market. Bond yields fell.

The rally marks a reversal from the market’s recent trajectory. The S&P 500 followed up an all-time high close on May 7 with two straight weekly declines. Investors have been watching for potential signs of inflation as the economic recovery continues in the waning days of the U.S. coronavirus pandemic.

Rob Haworth, senior investment strategy director at U.S. Bank Wealth Management, said the decline in bond yields was spurring the rally, especially in technology and communication services stocks.

“You have inflation expectations coming out of the bond market and that’s allowing some lift” to the stocks, Haworth said.

The S&P 500 index rose 41.19 points to 4,197.05. The index is now on track for a 0.4% monthly gain. The Dow Jones Industrial Average added 186.14 points, or 0.5%, to 34,393.98. The tech-heavy Nasdaq Composite gained 190.18 points, or 1.4%, to 13,661.17.

Smaller company stocks also notched gains. The Russell 2000 index picked up 12.07 points, or 0.5%, to 2,227.34.

The current earnings reporting season is near its end, and companies have been reporting strong results for the first quarter. That has helped reaffirm Wall Street’s view that the economic recovery is solid. It has also helped to justify some of the pricey stock values in several sectors, especially technology. Investors will get results from Dell and Salesforce.com this week, among a few others.

“Now we realize there’s still some spectacular earnings growth and fundamentals coming from tech and communications and growth stocks in general,” said Ryan Detrick, chief market strategist for LPL Financial.

Technology stocks accounted for a big share of the upward move in the market Monday, with semiconductor companies among the big gainers. Nvidia rose 4.1%, while Micron Technology added 2.7%. Among communication stocks, Facebook gained 2.7% and Twitter jumped 4.8%

There are only a handful of economic reports this week, including monthly data on new home sales and prices. On Friday, investors will get another reading on inflation in the form of the Commerce Department’s personal consumption and expenditures index. “Core PCE,” as it is known, is the preferred way Federal Reserve policymakers choose to measure inflation in the U.S. instead of the more widely known consumer price index that’s reported earlier in the month.

ASX 200 expected to rise​

The Australian share market looks set to push higher 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 18 points or 0.25% higher this morning.

On Wall Street, the Dow Jones rose 0.54%, the S&P 500 jumped 1%, and the Nasdaq stormed 1.41% higher.

https://apnews.com/article/asia-hea...mic-business-57a7199bbbb30cb27af6e6d76aa4356e

Stocks climb on Wall Street as appetite for risk returns

By DAMIAN J. TROISE and ALEX VEIGA

Stocks closed higher on Wall Street Monday, and the broad rally helped the S&P 500 claw back more than half of its losses over the past two weeks.

The benchmark index rose 1%, led by solid gains in technology and communication companies such as Microsoft, Google’s parent company, Facebook and Twitter. A variety of companies that rely on direct consumer spending also made solid gains. Sectors that are viewed as safer investments, like utilities, lagged the broader market. Bond yields fell.

The rally marks a reversal from the market’s recent trajectory. The S&P 500 followed up an all-time high close on May 7 with two straight weekly declines. Investors have been watching for potential signs of inflation as the economic recovery continues in the waning days of the U.S. coronavirus pandemic.

Rob Haworth, senior investment strategy director at U.S. Bank Wealth Management, said the decline in bond yields was spurring the rally, especially in technology and communication services stocks.

“You have inflation expectations coming out of the bond market and that’s allowing some lift” to the stocks, Haworth said.

The S&P 500 index rose 41.19 points to 4,197.05. The index is now on track for a 0.4% monthly gain. The Dow Jones Industrial Average added 186.14 points, or 0.5%, to 34,393.98. The tech-heavy Nasdaq Composite gained 190.18 points, or 1.4%, to 13,661.17.

Smaller company stocks also notched gains. The Russell 2000 index picked up 12.07 points, or 0.5%, to 2,227.34.

The current earnings reporting season is near its end, and companies have been reporting strong results for the first quarter. That has helped reaffirm Wall Street’s view that the economic recovery is solid. It has also helped to justify some of the pricey stock values in several sectors, especially technology. Investors will get results from Dell and Salesforce.com this week, among a few others.

“Now we realize there’s still some spectacular earnings growth and fundamentals coming from tech and communications and growth stocks in general,” said Ryan Detrick, chief market strategist for LPL Financial.

Technology stocks accounted for a big share of the upward move in the market Monday, with semiconductor companies among the big gainers. Nvidia rose 4.1%, while Micron Technology added 2.7%. Among communication stocks, Facebook gained 2.7% and Twitter jumped 4.8%

There are only a handful of economic reports this week, including monthly data on new home sales and prices. On Friday, investors will get another reading on inflation in the form of the Commerce Department’s personal consumption and expenditures index. “Core PCE,” as it is known, is the preferred way Federal Reserve policymakers choose to measure inflation in the U.S. instead of the more widely known consumer price index that’s reported earlier in the month.

Economists surveyed by FactSet expect Core PCE to be up 3% from a year ago, which would be above the Federal Reserve’s targeted level for inflation.

“We all expect inflation to be going up because of year-over-year comparisons,” Detrick said. “The number will be higher, but the question is will it be hotter than expected.”

The yield on the 10-year Treasury note fell to 1.60% from 1.63% Friday.

Digital currencies like Bitcoin were volatile once again after plummeting over the last two weeks. Bitcoin climbed 17.6% to around $39,539, according to Coindesk. It was worth nearly $65,000 a month ago.

Virgin Galactic jumped 27.6% after the company made its first rocket-powered flight from New Mexico to the fringe of space in a manned shuttle over the weekend.

 

[bigdog]

Stocks give up an early gain and end lower on Wall Street

Wall Street capped a listless day of trading Tuesday with a modest pullback for the major U.S. stock indexes, giving back some of the market’s gains after a solid start to the week.

The S&P 500 slipped 0.2% after spending much of the day wavering between small gains and losses. Financial, energy and health care stocks accounted for much of the decline. Technology and communication stocks eked out gains, as did big retailers, cruise lines and other companies that rely on consumer spending.

Homebuilders were among the biggest gainers following a report that U.S. home prices jumped in March by the most in more than seven years as an increasing number of would-be buyers compete for a dwindling supply of houses. D.R. Horton rose 2.3% and Toll Brothers gained 2.4%. KB Home rose 3.3% after also reporting that orders have so far more than doubled during the second quarter.

Investors continue to weigh the economic recovery’s progress against lingering concerns about inflation.

“Of course they’re still elevated, but fears of inflation seem to have come off the boil a little bit here,” said Katie

The S&P 500 fell 8.92 points to 4,188.13. The Dow Jones Industrial Average dropped 81.52 points, or 0.2%, to 34,312.46. The blue-chip index had been up by 117 points in the early going. The Nasdaq fell 4 points, or less than 0.1%, to 13,657.17.

Smaller company stocks fared worse than the broader market. The Russell 2000 index lost 21.59 points, or 1%, to 2,205.75.

Strong company earnings and encouraging data pointing to an accelerating economic recovery have helped keep the market near all-time highs, despite some heavier selling this month. The S&P 500 hit an all-time high on May 7th, but posted two straight weekly declines heading into this week.

ASX 200 expected to fall​

It looks set to be a disappointing 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 34 points or 0.5% lower this morning.

This follows an underwhelming night of trade on Wall Street which saw the Dow Jones fall 0.24%, the S&P 500 drop 0.21% and the Nasdaq trade broadly flat.

https://apnews.com/article/asia-inf...mic-business-7dc5fff4c572ea52fbc77202458e1c08

Stocks give up an early gain and end lower on Wall Street

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street capped a listless day of trading Tuesday with a modest pullback for the major U.S. stock indexes, giving back some of the market’s gains after a solid start to the week.

The S&P 500 slipped 0.2% after spending much of the day wavering between small gains and losses. Financial, energy and health care stocks accounted for much of the decline. Technology and communication stocks eked out gains, as did big retailers, cruise lines and other companies that rely on consumer spending.

Homebuilders were among the biggest gainers following a report that U.S. home prices jumped in March by the most in more than seven years as an increasing number of would-be buyers compete for a dwindling supply of houses. D.R. Horton rose 2.3% and Toll Brothers gained 2.4%. KB Home rose 3.3% after also reporting that orders have so far more than doubled during the second quarter.

Investors continue to weigh the economic recovery’s progress against lingering concerns about inflation.

“Of course they’re still elevated, but fears of inflation seem to have come off the boil a little bit here,” said Katie

The S&P 500 fell 8.92 points to 4,188.13. The Dow Jones Industrial Average dropped 81.52 points, or 0.2%, to 34,312.46. The blue-chip index had been up by 117 points in the early going. The Nasdaq fell 4 points, or less than 0.1%, to 13,657.17.

Smaller company stocks fared worse than the broader market. The Russell 2000 index lost 21.59 points, or 1%, to 2,205.75.

Strong company earnings and encouraging data pointing to an accelerating economic recovery have helped keep the market near all-time highs, despite some heavier selling this month. The S&P 500 hit an all-time high on May 7th, but posted two straight weekly declines heading into this week.

Inflation remains a key concern, particularly if the global economic recovery is hampered if governments and central banks have to withdraw stimulus to combat rising prices. It’s partly why stocks fell the previous two weeks. Still, analysts expect any rise in inflation to be tied to the growing economy and will likely be more moderate.

Bond yields have been relatively stable after rising sharply earlier in the year. The yield on the 10-year Treasury fell to 1.56% from 1.60% late Monday.

“We could see some upward pressure on rates, but ultimately Treasuries will be range-bound for the foreseeable future,” Nixon said.

The red-hot housing market and a report that consumer confidence remains strong gave investors another signal Tuesday that the economic recovery continues. Businesses have been reopening as more people get vaccinated and new COVID-19 cases fall. Moderna rose 3.1% after the drugmaker said its COVID-19 vaccine was found to be effective in children aged 12 to 15.

Investors will get more clues about the economic recovery’s trajectory this week. The Commerce Department will release its GDP report for the first quarter on Thursday. The U.S. economy grew at an annual rate of 4.3% in the final three months of 2020, which was slightly faster than previously estimated. Economists expect a huge rebound this year.

The Labor Department will release its weekly report on claims for unemployment benefits Thursday. Employment has been a closely watched factor for the economy. It has lagged other measures throughout the recovery so far and is viewed as necessary for a sustained rebound.

 

[bigdog]

Stocks close modestly higher after choppy day on Wall Street

A choppy day of trading on Wall Street ended with stocks closing higher Wednesday, reversing much of the S&P 500′s modest pullback the day before.

The benchmark index ended just under 0.2% higher after wavering between small gains and losses. Retailers and other companies that rely on consumer spending made solid gains. Communication and financial stocks also helped lift the market. The S&P 500′s gains were tempered by declines in health care, technology and other stocks.

Smaller company stocks continued to outgain the rest of the market as they’ve done all year. Treasury yields mostly edged higher.

Markets have been bumpy over the last few days as investors move past a stellar corporate earnings season and await additional clues on economic growth and inflation, which has been rising.

“That’s just going to be the state of the market environment for some time to come,” said Kristina Hooper, chief global market strategist at Invesco.

The S&P 500 rose 7.86 points to 4,195.99. The Dow Jones Industrial Average, which turned 125 years old Wednesday, gained 10.59 points, or less than 0.1%, to 34,323.05. The blue-chip index swung between a gain of 97 points and a 41-point slide. The Nasdaq added 80.82 points, or 0.6%, to 13,738. The Russell 2000 index of smaller companies gained 43.52 points, or 2%, to 2,249.27.

The S&P 500 hit an all-time high on May 7th, but then fell for two straight weeks heading into this week. The index is on track for a gain this week of about 1%.

Investors bid up shares in several retailers that delivered strong quarterly report cards. Dick’s Sporting Goods jumped 16.9% after reporting a surge in first-quarter sales and solid earnings as team sports returned. Urban Outfitters rose 10% and Abercrombie & Fitch climbed 7.8% on similarly strong financial results.

Retailers, hotels and cruise lines are poised for growth as more people get back to some semblance of normal with vaccinations increasing and the pandemic seemingly receding.

The next key economic update is set for Thursday, when the Commerce Department releases its latest GDP report for the first quarter. Economists are expecting a huge rebound in 2021 and results from the beginning of the year will give Wall Street a clearer picture moving forward.

ASX 200 expected to rise
The Australian share market looks set to recover some of yesterday’s losses on Thursday. 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 reasonably positive night on Wall Street, which saw the Dow Jones trade flat, the S&P 500 rise 0.19%, and the Nasdaq climb 0.59%.

https://apnews.com/article/asia-hea...mic-business-42ba72158da3fba6cb74d523d5a15e54

Stocks close modestly higher after choppy day on Wall Street

By DAMIAN J. TROISE and ALEX VEIGA

A choppy day of trading on Wall Street ended with stocks closing higher Wednesday, reversing much of the S&P 500′s modest pullback the day before.

The benchmark index ended just under 0.2% higher after wavering between small gains and losses. Retailers and other companies that rely on consumer spending made solid gains. Communication and financial stocks also helped lift the market. The S&P 500′s gains were tempered by declines in health care, technology and other stocks.

Smaller company stocks continued to outgain the rest of the market as they’ve done all year. Treasury yields mostly edged higher.

Markets have been bumpy over the last few days as investors move past a stellar corporate earnings season and await additional clues on economic growth and inflation, which has been rising.

“That’s just going to be the state of the market environment for some time to come,” said Kristina Hooper, chief global market strategist at Invesco.

The S&P 500 rose 7.86 points to 4,195.99. The Dow Jones Industrial Average, which turned 125 years old Wednesday, gained 10.59 points, or less than 0.1%, to 34,323.05. The blue-chip index swung between a gain of 97 points and a 41-point slide. The Nasdaq added 80.82 points, or 0.6%, to 13,738. The Russell 2000 index of smaller companies gained 43.52 points, or 2%, to 2,249.27.

The S&P 500 hit an all-time high on May 7th, but then fell for two straight weeks heading into this week. The index is on track for a gain this week of about 1%.

Investors bid up shares in several retailers that delivered strong quarterly report cards. Dick’s Sporting Goods jumped 16.9% after reporting a surge in first-quarter sales and solid earnings as team sports returned. Urban Outfitters rose 10% and Abercrombie & Fitch climbed 7.8% on similarly strong financial results.

Retailers, hotels and cruise lines are poised for growth as more people get back to some semblance of normal with vaccinations increasing and the pandemic seemingly receding.

The next key economic update is set for Thursday, when the Commerce Department releases its latest GDP report for the first quarter. Economists are expecting a huge rebound in 2021 and results from the beginning of the year will give Wall Street a clearer picture moving forward.

The growing economy has also raised inflation concerns, though analysts expect that much of the increase will be tied to economic growth and will be digestible. Concern centers around stronger inflation prompting governments and central banks to roll back economic stimulus and change course on interest rates. Federal Reserve officials have said that they see no need yet to change course.

Bond yields, which rose sharply earlier in the year, remained relatively steady. The yield on the 10-year Treasury rose to 1.58% from 1.56% from late Tuesday.

“Investors need to stop worrying about short-term concerns around The Fed and inflation,” Hooper said. “That’s really creating a lot of the churn we’re seeing.”

Online retail giant Amazon is buying MGM, the movie and TV studio behind James Bond, “Legally Blonde” and “Shark Tank,” with the aim of filling its video streaming service with more shows to watch. The announcement left the stock little changed.

Markets in Europe were mixed and markets in Asia were broadly higher.

 

[bigdog]

Stocks rise as the economy shows more signs of improvement

U.S. stock indexes closed mostly higher Thursday following economic reports showing that layoffs are falling and the economy is growing.

The S&P 500 rose 0.1% after giving up most of an earlier gain. The benchmark index is on track for a gain this week of about 1.1%. It hit an all-time high on May 7th but then fell for two straight weeks.

Industrial and financial stocks were among the biggest gainers. General Electric jumped 7.1% for the biggest gain in the S&P 500, while Boeing rose 3.9% and JPMorgan Chase added 1.6%. Those gains were tempered largely by slide in technology companies. Health care and household goods makers also lagged the broader market. Treasury yields and energy prices rose.

Investors were encouraged to see that weekly unemployment claims fell to another pandemic low and that the U.S. economy grew at a solid rate during the first quarter.

“We’re advising investors that if we’re going to get outsized positive economic news, it really supports the extent to which and the speed with which we’re going to see a reopening in the economy,” said Greg Bassuk, founder and CEO of AXS Investments. “And we think stocks are reacting positively to that today.”

The S&P 500 rose 4.89 points to 4,200.88. It had been up 0.4% in the early going. The Dow Jones Industrial Average gained 141.59 points, or 0.4% to 34,464.64. The slide in technology stocks left the Nasdaq essentially flat. The index slipped 1.72 points, or less than 0.1%, to 13,736.28.

In another signal that investors were confident about the economy going forward, the Russell 2000 index of smaller stocks fared better than the broader market, picking up 23.80 points, or 1.1%, to 2,273.07.

Online medical scrubs seller Figs surged 36.5% in its stock market debut, valuing the 8-year old company at $4.8 billion.

Markets have been bumpy over the last few weeks as investors move past a stellar corporate earnings season and await additional clues on economic growth and inflation, which has been rising.

Investors got a mostly positive set of economic reports Thursday. The number of Americans who filed for unemployment benefits fell yet again to a pandemic low of 406,000. A growing number of states, all of them controlled by Republicans, have started cutting off unemployed workers from the $300-a-week jobless benefit that was part of the latest economic recovery package. That’s likely pushing additional Americans into the active labor force.

Meanwhile, there was disappointing data on sales of durable goods, that is expensive items that are expected to last three years or more, fell 1.3% according to the Commerce Department. That figure was expected to rise, according to economists.

ASX 200 expected to rise​

The Australian share market looks set to end the week on a solid note. According to the latest SPI futures, the ASX 200 is expected to open the day 54 points or 0.75% this morning.

This follows a reasonably positive night on Wall Street, which saw the Dow Jones rise 0.41%, the S&P 500 climb 0.12%, and the Nasdaq trade flat.

https://apnews.com/article/financia...logy-economy-0620b351041775df46877af2ff62f77b

Stocks rise as the economy shows more signs of improvement

By DAMIAN J. TROISE and ALEX VEIGA

U.S. stock indexes closed mostly higher Thursday following economic reports showing that layoffs are falling and the economy is growing.

The S&P 500 rose 0.1% after giving up most of an earlier gain. The benchmark index is on track for a gain this week of about 1.1%. It hit an all-time high on May 7th but then fell for two straight weeks.

Industrial and financial stocks were among the biggest gainers. General Electric jumped 7.1% for the biggest gain in the S&P 500, while Boeing rose 3.9% and JPMorgan Chase added 1.6%. Those gains were tempered largely by slide in technology companies. Health care and household goods makers also lagged the broader market. Treasury yields and energy prices rose.

Investors were encouraged to see that weekly unemployment claims fell to another pandemic low and that the U.S. economy grew at a solid rate during the first quarter.

“We’re advising investors that if we’re going to get outsized positive economic news, it really supports the extent to which and the speed with which we’re going to see a reopening in the economy,” said Greg Bassuk, founder and CEO of AXS Investments. “And we think stocks are reacting positively to that today.”

The S&P 500 rose 4.89 points to 4,200.88. It had been up 0.4% in the early going. The Dow Jones Industrial Average gained 141.59 points, or 0.4% to 34,464.64. The slide in technology stocks left the Nasdaq essentially flat. The index slipped 1.72 points, or less than 0.1%, to 13,736.28.

In another signal that investors were confident about the economy going forward, the Russell 2000 index of smaller stocks fared better than the broader market, picking up 23.80 points, or 1.1%, to 2,273.07.

Online medical scrubs seller Figs surged 36.5% in its stock market debut, valuing the 8-year old company at $4.8 billion.

Markets have been bumpy over the last few weeks as investors move past a stellar corporate earnings season and await additional clues on economic growth and inflation, which has been rising.

Investors got a mostly positive set of economic reports Thursday. The number of Americans who filed for unemployment benefits fell yet again to a pandemic low of 406,000. A growing number of states, all of them controlled by Republicans, have started cutting off unemployed workers from the $300-a-week jobless benefit that was part of the latest economic recovery package. That’s likely pushing additional Americans into the active labor force.

Meanwhile, there was disappointing data on sales of durable goods, that is expensive items that are expected to last three years or more, fell 1.3% according to the Commerce Department. That figure was expected to rise, according to economists.

Lastly the Commerce Department reported that the U.S. economy grew at a 6.4% annual rate in the first quarter as the economy recovers from the pandemic.

Investors are looking ahead to Friday’s inflation data. The growing economy has raised inflation concerns, though analysts expect that much of the increase will be tied to economic growth and will be digestible.

The data out Friday is the Commerce Department’s personal consumption expenditures index, more commonly referred to as PCE. The Federal Reserve, whose job is to monitor and control inflation as best as they can, tends to rely on PCE data more than the more widely known consumer price index, or CPI, when making policy decisions.

Bond yields have been relatively stable this week, and remained so on Thursday. The 10-year U.S. Treasury note traded at a yield of 1.60%, up from 1.57% the day before. It has remained in this range for the last two weeks.

 

[bigdog]

U.S. markets will be closed Monday for Memorial Day.

US Stocks Cling to Modest Gains and End the Week Higher

Stocks held on to modest gains on Wall Street Friday, ending the week higher for the first time in three weeks.

Stocks capped a listless day of trading on Wall Street with modest gains Friday and the S&P 500's first weekly gain in three weeks.

Gains in technology and health care companies outweighed a slide in communications stocks, retailers and elsewhere in the market. The S&P 500 rose 0.1% and notched a 1.2% gain for the week.

The benchmark index closed out the final day of trading in May with a monthly gain of 0.5%. That's the index's fourth straight monthly increase and follows a bumpy few weeks in the markets as investors moved past a stellar corporate earnings season and focused on the tug-of-war between the economic recovery and rising inflation.

Wall Street largely shrugged off a report indicating consumer spending increased last month, the latest economic snapshot to show inflation accelerating in the U.S. economy. Treasury yields fell, including the yield for the benchmark 10-year Treasury. Typically, worries about rising inflation fuel expectations of higher interest rates, which can cause bond yields to rise.

“It’s an indication that inflation is going to be transitory," said Tom Martin, senior portfolio manager with Globalt Investments. "Today was just generally an up day, plus the volumes in the market have been pretty light lately, especially this week.”

The S&P 500 rose 3.23 points to 4,204.11, its third straight gain. The Dow Jones Industrial Average added 64.81 points, or 0.2%, to 34,529.45. The tech-heavy Nasdaq gained 12.46 points, or 0.1%, to 13,748.74.

Smaller company stocks, which have outperformed the broader market this year, fell. The Russell 2000 index lost 4.10 points, or 0.2%, to 2,268.97.

Inflation remains a key concern for investors, particularly if the global economic recovery is hampered if governments and central banks have to withdraw stimulus to combat rising prices. It’s partly why stocks fell two out of the past three weeks. Still, analysts expect any rise in inflation to be tied to the growing economy and will likely be more moderate.

Investors did not react harshly to the latest hotter-than-expected inflation data. The Commerce Department said Friday that personal consumption expenditures, a measure of inflation used by the Federal Reserve, rose by 3.6% in April. Excluding volatile food and energy prices, inflation was still high at 3.1%, and well above the Federal Reserve's long-term target of inflation of around 2%.

https://www.usnews.com/news/busines...s-mostly-higher-on-upbeat-us-jobs-growth-data

US Stocks Cling to Modest Gains and End the Week Higher

Stocks held on to modest gains on Wall Street Friday, ending the week higher for the first time in three weeks.

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

Stocks capped a listless day of trading on Wall Street with modest gains Friday and the S&P 500's first weekly gain in three weeks.

Gains in technology and health care companies outweighed a slide in communications stocks, retailers and elsewhere in the market. The S&P 500 rose 0.1% and notched a 1.2% gain for the week.

The benchmark index closed out the final day of trading in May with a monthly gain of 0.5%. That's the index's fourth straight monthly increase and follows a bumpy few weeks in the markets as investors moved past a stellar corporate earnings season and focused on the tug-of-war between the economic recovery and rising inflation.

Wall Street largely shrugged off a report indicating consumer spending increased last month, the latest economic snapshot to show inflation accelerating in the U.S. economy. Treasury yields fell, including the yield for the benchmark 10-year Treasury. Typically, worries about rising inflation fuel expectations of higher interest rates, which can cause bond yields to rise.

“It’s an indication that inflation is going to be transitory," said Tom Martin, senior portfolio manager with Globalt Investments. "Today was just generally an up day, plus the volumes in the market have been pretty light lately, especially this week.”

The S&P 500 rose 3.23 points to 4,204.11, its third straight gain. The Dow Jones Industrial Average added 64.81 points, or 0.2%, to 34,529.45. The tech-heavy Nasdaq gained 12.46 points, or 0.1%, to 13,748.74.

Smaller company stocks, which have outperformed the broader market this year, fell. The Russell 2000 index lost 4.10 points, or 0.2%, to 2,268.97.

Inflation remains a key concern for investors, particularly if the global economic recovery is hampered if governments and central banks have to withdraw stimulus to combat rising prices. It’s partly why stocks fell two out of the past three weeks. Still, analysts expect any rise in inflation to be tied to the growing economy and will likely be more moderate.

Investors did not react harshly to the latest hotter-than-expected inflation data. The Commerce Department said Friday that personal consumption expenditures, a measure of inflation used by the Federal Reserve, rose by 3.6% in April. Excluding volatile food and energy prices, inflation was still high at 3.1%, and well above the Federal Reserve's long-term target of inflation of around 2%.

Bond yields remained steady on the news, with the 10-year U.S. Treasury note trading at 1.58%, roughly where it's been all week.

“You're not seeing big spikes in rates when inflation data comes out a little high and that's a sign of relief for the markets,” said Jamie Cox, managing partner at Harris Financial Group.

The calm rise of the market this week, steady bond yields, and a lack of a reaction to the latest inflation data signals that investors are less worried about long-term inflation issues than they were a few weeks ago. Investors also got key economic measures of GDP growth and falling unemployment this week.

An uptick in travel for the Memorial Day weekend is another signal that the economic recovery is pushing ahead. More than 1.8 million people went through U.S. airports on Thursday, and the number was widely expected to cross 2 million over the weekend. That would be the highest since early March 2020. AAA expects a 60% jump in travel over the same holiday weekend last year, with 37 million Americans traveling at least 50 miles from home, most of them in cars.

Most policymakers have said they expected some level of inflation as the U.S. economy recovers from the pandemic, helped by trillions of dollars of economic stimulus, however they expect the inflation to be temporary.

The market didn’t have much of a reaction to the White House’s unveiling of President Joe Biden’s proposed $6 trillion budget for next year. The budget, which his piled high with new safety net programs for the poor and middle class, depends on taxing corporations and the wealthy to keep the nation’s spiking debt from spiraling out of control. While only a proposal, the budget would be the highest level of spending as a segment of the economy since World War II.

Democrats control both the House and Senate, and the Senate can pass budget-related items without needing the 60-vote threshold, so it's likely a good number of Biden's items will make it into the final version.

Salesforce.com rose 5.4%, the biggest gain in the S&P 500, after reporting solid results for its latest quarter. Meanwhile, electronics maker HP fell 8.9% for the biggest decline in the S&P 500 after the company issued a weak full-year forecast to investors.

U.S. markets will be closed Monday for Memorial Day.