NYSE Dow Jones finished today at:

[bigdog]

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

ASX 200 expected to open slightly higher​

The Australian share market is expected to open the week slightly higher this morning. According to the latest SPI futures, the ASX 200 is expected to open the day 6 points or 0.1% higher.

This follows a subdued but positive end to the week on Wall Street. The Dow Jones rose 0.2%, the S&P 500 climbed 0.1%, and the Nasdaq edged 0.1% higher.

 

[bigdog]

U.S. was closed Monday for Memorial Day and also UK market closed

Global stocks mixed after Wall St ends May with gain

Global stock markets were mixed Monday after Wall Street ended May with a gain and Japan’s factory output grew less than expected.

London opened higher while Frankfurt retreated. Tokyo declined while Shanghai and Hong Kong gained.

Wall Street futures were higher. U.S. markets were closed for a holiday.

Investors are wavering between optimism about consumer spending and factory output reviving and unease that rising inflation might prompt governments and central banks to withdraw stimulus.

“It still feels like a market looking for direction in the face of uncertainty,” said Patrik Schowitz of JP Morgan Asset Management in a report.

In early trading, London’s FTSE 100 was down less than 0.1% at 7,022.61. The DAX in Frankfurt fell 0.2% to 15,485.89 while the CAC 40 in Paris gained less than 0.1% to 6,487.25.

On Wall Street, futures for the benchmark S&P 500 and Dow Jones Industrial Average were up less than 0.1%.

On Friday, the S&P 500 rose 0.1% to end May with a monthly gain of 0.5% after bumpy weeks of selling as investors watched the conflict between economic recovery and rising inflation pressures.

The Dow added 0.2% and the tech-heavy Nasdaq gained 0.1%.

In Asia, the Shanghai Composite Index gained 0.4% to 3,615.48 after an industry group and the national statistics agency reported manufacturing activity held steady in May, adding to signs a rebound is leveling off.

The Nikkei 225 in Tokyo tumbled 1% to 28,860.08 after May retail sales fell 4.5% from the previous month. May factory output rose above pre-pandemic levels for the first time but 2.5% growth was lower than expected.

The Hang Seng in Hong Kong rose less than 0.1% to 29,151.80 while the Kospi in Seoul rose 0.5% to 3,203.92. The S&P-ASX 200 in Sydney was off 0.2% at 7,161.60.

India’s Sensex advanced 1% to 51.965.87. New Zealand, Bangkok and Jakarta gained while Singapore retreated.

The dollar declined to 109.70 Japanese yen from Friday’s 109.81 yen. The euro edged down to $1.2189 from $1.2197.

ASX 200 expected to tumble​

The Australian share market looks set to tumble on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 43 points or 0.6% lower.

This is despite the US and UK markets being closed for public holidays. On mainland Europe, the DAX fell 0.6% and the CAC dropped 0.6% following the release of strong inflation data.


U.S. and UK markets were closed Monday

REST of Market open

https://apnews.com/article/financial-markets-asia-business-dda76c8f4ff3fbb0ad4e3cf20aa3f798

Global stocks mixed after Wall St ends May with gain

By JOE McDONALD

BEIJING (AP) — Global stock markets were mixed Monday after Wall Street ended May with a gain and Japan’s factory output grew less than expected.

London opened higher while Frankfurt retreated. Tokyo declined while Shanghai and Hong Kong gained.

Wall Street futures were higher. U.S. markets were closed for a holiday.

Investors are wavering between optimism about consumer spending and factory output reviving and unease that rising inflation might prompt governments and central banks to withdraw stimulus.

“It still feels like a market looking for direction in the face of uncertainty,” said Patrik Schowitz of JP Morgan Asset Management in a report.

In early trading, London’s FTSE 100 was down less than 0.1% at 7,022.61. The DAX in Frankfurt fell 0.2% to 15,485.89 while the CAC 40 in Paris gained less than 0.1% to 6,487.25.

On Wall Street, futures for the benchmark S&P 500 and Dow Jones Industrial Average were up less than 0.1%.

On Friday, the S&P 500 rose 0.1% to end May with a monthly gain of 0.5% after bumpy weeks of selling as investors watched the conflict between economic recovery and rising inflation pressures.

The Dow added 0.2% and the tech-heavy Nasdaq gained 0.1%.

In Asia, the Shanghai Composite Index gained 0.4% to 3,615.48 after an industry group and the national statistics agency reported manufacturing activity held steady in May, adding to signs a rebound is leveling off.

The Nikkei 225 in Tokyo tumbled 1% to 28,860.08 after May retail sales fell 4.5% from the previous month. May factory output rose above pre-pandemic levels for the first time but 2.5% growth was lower than expected.

The Hang Seng in Hong Kong rose less than 0.1% to 29,151.80 while the Kospi in Seoul rose 0.5% to 3,203.92. The S&P-ASX 200 in Sydney was off 0.2% at 7,161.60.

India’s Sensex advanced 1% to 51.965.87. New Zealand, Bangkok and Jakarta gained while Singapore retreated.

The U.S. Commerce Department said 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 3.1%, well above the Fed’s long-term target of 2%.

Fed officials said earlier the economy would be allowed to “run hot” to make sure a recovery is established, but investors worry about unexpectedly sharp rises in prices of consumer goods and some commodities. They have been at least temporarily reassured by comments from Fed officials that it is too early to change direction.

In energy markets, benchmark U.S. crude rose 68 cents to $67.00 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 43 cents on Friday to $66.32 per barrel. Brent crude, used to price international oils, added 66 cents to $69.38 per barrel in London. It gained 17 cents the previous session to $69.63.

The dollar declined to 109.70 Japanese yen from Friday’s 109.81 yen. The euro edged down to $1.2189 from $1.2197.

 

[bigdog]

Stocks end mixed on Wall Street after early gain evaporates

A wobbly day on Wall Street ended with a mixed finish for the major stock indexes Tuesday as losses in technology and health care companies offset gains elsewhere in the market.

The S&P 500 gave up an early gain, slipping less than 0.1%. That broke a three-day winning streak. The benchmark index had been up 0.7% in the early going. The tech-heavy Nasdaq inched 0.1% lower, while the Dow Jones Industrial Average eked out a 0.1% gain.

The market’s modest moves came as investors returned from a three-day holiday weekend. Traders weighed a new report showing more growth in manufacturing as the coronavirus pandemic wanes in the U.S., but were also looking ahead to the government’s monthly jobs report update on Friday.

Expectations that the upcoming Labor Department report will show a strong increase in hiring in May stoked worries about rising inflation, and how the Federal Reserve may respond to it. That helped push bond yields broadly higher Tuesday, said Quincy Krosby, chief market strategist at Prudential Financial.

“The market will focus on jobs this week and the reason is so will the Fed,” Krosby said. “This is a market that wants to assess or ascertain how the Fed is going to respond to more inflation.”

The S&P 500 dropped 2.07 points to 4,202.04. The index is coming off its fourth straight monthly increase. The Dow gained 45.86 points to 34,575.31, while the Nasdaq fell 12.26 points to 13,736.48. Small-company stocks outpaced the rest of the market. The Russell 2000 index added 25.77 points, or 1.1%, to 2,294.74. U.S. markets were closed Monday for Memorial Day.

Stock trading has been bumpy in recent weeks as investors moved past a stellar corporate earnings season and focused on the tug-of-war between the economic recovery and rising inflation. The concern is that the global recovery could be hampered if governments and central banks have to withdraw stimulus to combat rising prices.

Banks were among the biggest gainers as bond yields ticked higher, which allows them to charge more lucrative interest rates on loans. The yield on the 10-year Treasury rose to 1.61% from 1.58% Friday. Bank of America rose 1.3%.

Energy stocks were the biggest gainers in the S&P 500. Crude oil prices jumped more than 2%, helping to send producers higher. Exxon Mobil rose 3.6%.

“The economy continues to expand, continues to rebound,” Krosby said. “Americans are traveling by car, traveling by air, and that’s reflected in the oil prices.”

ASX 200 expected to Rise​

It looks set to be a mildly positive 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 11 points or 0.15% higher this morning.

This follows a subdued start to the week on Wall Street following the Memorial Day holiday. The Dow Jones rose 0.13%, the S&P 500 was flat, and the Nasdaq fell 0.09%.

https://apnews.com/article/financial-markets-asia-business-38298ef7a9b4cd55a082e7ca67f7d69f

Stocks end mixed on Wall Street after early gain evaporates

By DAMIAN J. TROISE and ALEX VEIGA

A wobbly day on Wall Street ended with a mixed finish for the major stock indexes Tuesday as losses in technology and health care companies offset gains elsewhere in the market.

The S&P 500 gave up an early gain, slipping less than 0.1%. That broke a three-day winning streak. The benchmark index had been up 0.7% in the early going. The tech-heavy Nasdaq inched 0.1% lower, while the Dow Jones Industrial Average eked out a 0.1% gain.

The market’s modest moves came as investors returned from a three-day holiday weekend. Traders weighed a new report showing more growth in manufacturing as the coronavirus pandemic wanes in the U.S., but were also looking ahead to the government’s monthly jobs report update on Friday.

Expectations that the upcoming Labor Department report will show a strong increase in hiring in May stoked worries about rising inflation, and how the Federal Reserve may respond to it. That helped push bond yields broadly higher Tuesday, said Quincy Krosby, chief market strategist at Prudential Financial.

“The market will focus on jobs this week and the reason is so will the Fed,” Krosby said. “This is a market that wants to assess or ascertain how the Fed is going to respond to more inflation.”

The S&P 500 dropped 2.07 points to 4,202.04. The index is coming off its fourth straight monthly increase. The Dow gained 45.86 points to 34,575.31, while the Nasdaq fell 12.26 points to 13,736.48. Small-company stocks outpaced the rest of the market. The Russell 2000 index added 25.77 points, or 1.1%, to 2,294.74. U.S. markets were closed Monday for Memorial Day.

Stock trading has been bumpy in recent weeks as investors moved past a stellar corporate earnings season and focused on the tug-of-war between the economic recovery and rising inflation. The concern is that the global recovery could be hampered if governments and central banks have to withdraw stimulus to combat rising prices.

Banks were among the biggest gainers as bond yields ticked higher, which allows them to charge more lucrative interest rates on loans. The yield on the 10-year Treasury rose to 1.61% from 1.58% Friday. Bank of America rose 1.3%.

Energy stocks were the biggest gainers in the S&P 500. Crude oil prices jumped more than 2%, helping to send producers higher. Exxon Mobil rose 3.6%.

“The economy continues to expand, continues to rebound,” Krosby said. “Americans are traveling by car, traveling by air, and that’s reflected in the oil prices.”

Health care and technology companies fell, checking gains elsewhere in the market. Abbott Laboratories slumped 9.3% for the biggest loss in the S&P 500. Microsoft slid 0.9%.

The Institute for Supply Management reported that manufacturing picked up again in May. The ISM’s manufacturing index came in at 61.2 last month, much better than the 60.6 expected by economists surveyed by FactSet.

The growth in manufacturing came despite supply shortages that have plagued many manufacturers for weeks, particularly those who require semiconductors. It’s the latest piece of economic data that has shown the U.S. economy growing quickly out of the coronavirus pandemic.

AMC Entertainment jumped 22.7% after the movie theater operator announced a stock sale. AMC, whose stock is up more than 1,000% this year, is one of a handful of companies that gained the attention of a group of online retail investors earlier this year, along with companies like GameStop.

 

[bigdog]

Stocks manage modest gains overall; AMC nearly doubles

Wall Street wrapped up another wobbly day of trading Wednesday with modest gains for the major stock indexes, as energy and technology companies kept losses elsewhere in the market in check.

The benchmark S&P 500 rose 0.1% after wobbling between a gain of 0.4% and a loss of 0.1%. Strength in technology, energy and real estate stocks offset a pullback in retailers and other companies that rely on consumer spending. Communication, industrial and materials stocks also fell. Treasury yields mostly eased after rising a day earlier.

Movie theater operator AMC Entertainment nearly doubled in another bout of heavy trading as the company embraced its status as a “meme” stock being driven higher by hordes of individual investors. Other stocks like GameStop that have been championed on online message boards and social media also rose.

The market’s modest moves for the second straight day come as investors look ahead to Friday’s U.S. jobs report, which the market hopes will lead to fresh clues about the Federal Reserve’s next interest rate policy moves later this month, when the central bank holds its next meeting of policymakers.

“Payrolls will hopefully help to clarify where the Fed stands,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute. “Until then, it’s going to be hard for the market to find a real direction, with the exception of the small-cap meme stocks.”

The S&P 500 rose 6.08 points to 4,208.12. The index is coming off its fourth straight monthly increase. The Dow Jones Industrial Average gained 25.07 points, or 0.1%, to 34,600.38. The Nasdaq recovered from an early slide, adding 19.85 points, or 0.1%, to 13,756.33.

Small-company stocks also notched modest gains. The Russell 2000 index rose 3.09 points, or 0.1%, to 2,297.83.

ASX 200 expected to rise​

The Australian share market looks set to push higher again on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 17 points or 0.25% higher this morning.

This follows a mildly positive night of trade on Wall Street, which saw the Dow Jones rise 0.07%, the S&P 500 climb 0.14%, and the Nasdaq push 0.14% higher.

https://apnews.com/article/financia...mic-business-94f72a368d1906dba17289c1351ec6fa

Stocks manage modest gains overall; AMC nearly doubles

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street wrapped up another wobbly day of trading Wednesday with modest gains for the major stock indexes, as energy and technology companies kept losses elsewhere in the market in check.

The benchmark S&P 500 rose 0.1% after wobbling between a gain of 0.4% and a loss of 0.1%. Strength in technology, energy and real estate stocks offset a pullback in retailers and other companies that rely on consumer spending. Communication, industrial and materials stocks also fell. Treasury yields mostly eased after rising a day earlier.

Movie theater operator AMC Entertainment nearly doubled in another bout of heavy trading as the company embraced its status as a “meme” stock being driven higher by hordes of individual investors. Other stocks like GameStop that have been championed on online message boards and social media also rose.

The market’s modest moves for the second straight day come as investors look ahead to Friday’s U.S. jobs report, which the market hopes will lead to fresh clues about the Federal Reserve’s next interest rate policy moves later this month, when the central bank holds its next meeting of policymakers.

“Payrolls will hopefully help to clarify where the Fed stands,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute. “Until then, it’s going to be hard for the market to find a real direction, with the exception of the small-cap meme stocks.”

The S&P 500 rose 6.08 points to 4,208.12. The index is coming off its fourth straight monthly increase. The Dow Jones Industrial Average gained 25.07 points, or 0.1%, to 34,600.38. The Nasdaq recovered from an early slide, adding 19.85 points, or 0.1%, to 13,756.33.

Small-company stocks also notched modest gains. The Russell 2000 index rose 3.09 points, or 0.1%, to 2,297.83.

Economists are projecting that Friday’s Labor Department report will show employers added more than 650,000 jobs last month. Expectations of a strong increase in hiring have stoked worries about inflation and how the Fed may respond to it. The concern is that the global recovery could be hampered if governments and central banks have to withdraw stimulus to combat rising prices.

Bond yields edged lower. The yield on the 10-year Treasury note slipped to 1.59% from 1.61% late Tuesday.

Technology companies did much of the heavy lifting for the S&P 500. Chipmaker Nvidia rose 3.2%. Payments processor Visa gained 1.3% after giving investors an encouraging financial update.

Energy companies also made broad gains as oil prices ticked more than 1% higher. Occidental Petroleum rose 2.7% and Schlumberger led all S&P 500 stocks with a 7.7% gain.

Etsy jumped 7.1% for one of the biggest gains in the S&P 500 after the online crafts marketplace said it will buy Depop, an app that’s popular among young people looking to buy and sell used clothing and vintage fashions from the early 2000s.

 

[bigdog]

Stocks end lower on Wall Street; AMC sinks after stock sale

Technology companies helped drag stocks lower on Wall Street Thursday, knocking the S&P 500 into the red for the week.

The benchmark S&P 500 index dropped 0.4% and is now on track for a 0.3% weekly loss. Technology companies, whose pricey valuations make them more sensitive to inflation fears, were the biggest weight on the market. Microsoft fell 0.6% and Apple lost 1.2%.

Retailers, hotel operators and a variety of other companies that rely on direct consumer spending also posted some of the biggest declines, as did communications companies. Etsy slid 5.4%, Tesla dropped 5.3%, Wynn Resorts fell 4.1% and Facebook lost 0.9%. Banks and health care companies rose.

The selling came as investors weighed the latest economic reports showing that unemployment claims are falling but labor costs are rising. Traders were also looking ahead to the government’s latest monthly jobs report Friday, which could provide more clarity on the economic recovery and the potential for higher inflation.

“There’s less conviction about what the jobs report may be, so you’re seeing the markets move a little sideways here,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “We’ve gotten all these fantastic growth numbers, and now we’ve got to look past that and look toward the future at the actual growth beyond the pandemic, and people are just trying to get a handle on what that may look like.”

The S&P 500 fell 15.27 points to 4,192.85. The Dow Jones Industrial Average dropped 23.34 points, or 0.1%, to 34,577.04. The tech-heavy Nasdaq lost 141.82 points, or 1%, to 13,614.51. The Russell 2000 index of smaller companies gave up 18.59 points, or 0.8%, to 2,279.25.

Bond yields rose. The yield on the 10-year Treasury rose to 1.63% from 1.59% late Wednesday.

Markets have been wobbly all week as investors closely watch the labor markets for more signs of economic growth and consider any information that could give more clues about rising inflation. Labor costs rose at a 1.7% rate in the first quarter, up from the initial estimate that costs had fallen 0.3%. That could stoke more fears that inflation might run hotter than expected.

Rising inflation is expected as the economy recovers from the pandemic’s impact, but the key question for many on Wall Street is whether it will be temporary or more permanent.

“The main concern in the markets, rightfully so, is inflation,” said Cliff Hodge, chief investment officer for Cornerstone Wealth. “Data points are beginning to confirm the view that inflation is likely to be more sticky.”

Wall Street will get more detailed data on the labor market Friday when the Labor Department releases its monthly jobs report. Economists are projecting that it will show employers added 650,000 jobs in May.

Expectations of a strong increase in hiring have stoked worries about inflation and how the Fed may respond to it. The concern is that the global recovery could be hampered if governments and central banks have to withdraw stimulus to combat rising prices.

ASX 200 expected to edge higher​

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

This follows a poor night of trade on Wall Street, which saw the Dow Jones fall 0.07%, the S&P 500 drop 0.36%, and the Nasdaq tumble 1.03% lower.

https://apnews.com/article/financia...ogy-business-8b2cd7449bf207881f958e439d0571a4

Stocks end lower on Wall Street; AMC sinks after stock sale

By DAMIAN J. TROISE and ALEX VEIGA

Technology companies helped drag stocks lower on Wall Street Thursday, knocking the S&P 500 into the red for the week.

The benchmark S&P 500 index dropped 0.4% and is now on track for a 0.3% weekly loss. Technology companies, whose pricey valuations make them more sensitive to inflation fears, were the biggest weight on the market. Microsoft fell 0.6% and Apple lost 1.2%.

Retailers, hotel operators and a variety of other companies that rely on direct consumer spending also posted some of the biggest declines, as did communications companies. Etsy slid 5.4%, Tesla dropped 5.3%, Wynn Resorts fell 4.1% and Facebook lost 0.9%. Banks and health care companies rose.

The selling came as investors weighed the latest economic reports showing that unemployment claims are falling but labor costs are rising. Traders were also looking ahead to the government’s latest monthly jobs report Friday, which could provide more clarity on the economic recovery and the potential for higher inflation.

“There’s less conviction about what the jobs report may be, so you’re seeing the markets move a little sideways here,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “We’ve gotten all these fantastic growth numbers, and now we’ve got to look past that and look toward the future at the actual growth beyond the pandemic, and people are just trying to get a handle on what that may look like.”

The S&P 500 fell 15.27 points to 4,192.85. The Dow Jones Industrial Average dropped 23.34 points, or 0.1%, to 34,577.04. The tech-heavy Nasdaq lost 141.82 points, or 1%, to 13,614.51. The Russell 2000 index of smaller companies gave up 18.59 points, or 0.8%, to 2,279.25.

Bond yields rose. The yield on the 10-year Treasury rose to 1.63% from 1.59% late Wednesday.

Markets have been wobbly all week as investors closely watch the labor markets for more signs of economic growth and consider any information that could give more clues about rising inflation. Labor costs rose at a 1.7% rate in the first quarter, up from the initial estimate that costs had fallen 0.3%. That could stoke more fears that inflation might run hotter than expected.

Rising inflation is expected as the economy recovers from the pandemic’s impact, but the key question for many on Wall Street is whether it will be temporary or more permanent.

“The main concern in the markets, rightfully so, is inflation,” said Cliff Hodge, chief investment officer for Cornerstone Wealth. “Data points are beginning to confirm the view that inflation is likely to be more sticky.”

Wall Street will get more detailed data on the labor market Friday when the Labor Department releases its monthly jobs report. Economists are projecting that it will show employers added 650,000 jobs in May.

Expectations of a strong increase in hiring have stoked worries about inflation and how the Fed may respond to it. The concern is that the global recovery could be hampered if governments and central banks have to withdraw stimulus to combat rising prices.

Inflation worries are also butting up against the recovery seemingly shifting from a sharp rebound to a grind, which could mean more choppiness as the economy adjusts.

“When the rubber meets the road with the realities of reopening, we think we could be in for a rocky period,” Hodge said.

AMC Entertainment slumped 17.9%, shedding gains from a brief rally, after the movie theater operator’s announcement that it would sell more shares following a huge run-up in its stock price on a surge of interest from individual investors. The stock is still up about 2,300% this year.

General Motors jumped 6.4% after saying it expects earnings in the first half of the year to exceed its earlier forecasts as its efforts to manage a global computer chip shortage have worked better than expected. Rival Ford Motor climbed 7.2% for the biggest gain in the S&P 500.

European and Asian markets closed mixed.

 

[bigdog]

Stocks end the week higher as US jobs report calms Fed fears

Wall Street closed out a week of mostly choppy trading with broad gains Friday, pushing the S&P 500 to its second straight weekly gain.

The S&P 500 rose 0.9% and finished with a 0.6% gain for the week. Technology stocks were biggest gainers and did the most to drive the broader market higher. Microsoft rose 2.1% and Apple added 1.9%. Communication stocks and companies that rely on consumer spending also made solid gains. Only utilities closed lower.

The rally followed a Labor Department report showing U.S. employers added 559,000 jobs in May. That’s an improvement from April’s sluggish gain, but short of economists’ forecasts. Still, the lower-than-expected increase in jobs may have opened the door for the Federal Reserve to keep the accelerator floored on its efforts to support the economy, which include monthly bond purchases to keep interest rates low.

“When you see employment numbers like we saw today, which were slightly disappointing, that would give market participants confidence that the Fed will stay on track and keep rates lower for a longer period of time,” said Clinton Warren, global investment specialist at J.P. Morgan Private Bank. “The market is saying ’OK, the Fed is going to keep rates lower, that’s good for the stock market, it’s good for risk asset classes, and that’s what’s driving the market higher today.”

The S&P 500 rose 37.04 points to 4,229.89. The Dow Jones Industrial Average gained 179.35 points, or 0.5%, to 34,756.39. The rally in technology stocks helped push the Nasdaq to a solid gain. The tech-heavy index climbed 199.98 points, or 1.5%, to 13,814.49.

Smaller company stocks also notched gains. The Russell 2000 added 7.16 points, or 0.3%, to 2,286.41.

The pickup in jobs last month is another sign that the economy continues to recover, even as employment remains relatively shaky and struggling to get back to pre-pandemic levels.

https://apnews.com/article/financia...rus-pandemic-d2347e1fa16e0be85a5a9ff91427ac5e

Stocks end the week higher as US jobs report calms Fed fears

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street closed out a week of mostly choppy trading with broad gains Friday, pushing the S&P 500 to its second straight weekly gain.

The S&P 500 rose 0.9% and finished with a 0.6% gain for the week. Technology stocks were biggest gainers and did the most to drive the broader market higher. Microsoft rose 2.1% and Apple added 1.9%. Communication stocks and companies that rely on consumer spending also made solid gains. Only utilities closed lower.

The rally followed a Labor Department report showing U.S. employers added 559,000 jobs in May. That’s an improvement from April’s sluggish gain, but short of economists’ forecasts. Still, the lower-than-expected increase in jobs may have opened the door for the Federal Reserve to keep the accelerator floored on its efforts to support the economy, which include monthly bond purchases to keep interest rates low.

“When you see employment numbers like we saw today, which were slightly disappointing, that would give market participants confidence that the Fed will stay on track and keep rates lower for a longer period of time,” said Clinton Warren, global investment specialist at J.P. Morgan Private Bank. “The market is saying ’OK, the Fed is going to keep rates lower, that’s good for the stock market, it’s good for risk asset classes, and that’s what’s driving the market higher today.”

The S&P 500 rose 37.04 points to 4,229.89. The Dow Jones Industrial Average gained 179.35 points, or 0.5%, to 34,756.39. The rally in technology stocks helped push the Nasdaq to a solid gain. The tech-heavy index climbed 199.98 points, or 1.5%, to 13,814.49.

Smaller company stocks also notched gains. The Russell 2000 added 7.16 points, or 0.3%, to 2,286.41.

The pickup in jobs last month is another sign that the economy continues to recover, even as employment remains relatively shaky and struggling to get back to pre-pandemic levels.

The jobs report showed that companies are still struggling to find enough workers as the economy rapidly recovers from the recession caused by the pandemic. People are either looking for better jobs than they had before the pandemic, retiring early, worried about child care or otherwise taking time on the sidelines from the job market.

“There are still seasonal issues,” said Liz Ann Sonders, chief investment strategist at Charles Schwab. There is, she said, a “disconnect between job openings, which have been incredibly robust, and the desire or willingness to go back to work.”

Bond yields fell. The yield on the 10-year Treasury slipped to 1.55% from 1.62% late Thursday. The dip helped push tech stocks higher. Lower interest rates help stocks generally because they can steer some investors away from bonds that are paying little in interest toward riskier investments. Stocks that look the most expensive based on their earnings, such as technology companies, can be among the biggest beneficiaries.

Investors have been worried about rising inflation becoming a long-term issue, rather than the temporary effect from the recovering economy. They are also worried that The Fed could consider pulling its support for the economy if inflation runs too hot.

Inflation has already burst higher across the economy, with prices rising for everything from used automobiles to restaurant meals. Employers are also finding it harder to attract employees, which could force them to raise wages, also adding to inflation.

The contrast between signs of higher inflation and a still-recovering labor market has made it difficult for investors to get a read on what the Fed will do next.

“That’s why the market has been constrained in such a tight band of turns over the last, not only week, but throughout this whole year,” Warren said.

 

[bigdog]

ASX 200 expected to rise​

The Australian share market is expected to open the week slightly higher this morning. According to the latest SPI futures, the ASX 200 is expected to open the day 7 points or 0.1% higher.

This follows a positive end to the week on Wall Street, which saw the Dow Jones rise 0.5%, the S&P 500 climb 0.9%, and the Nasdaq storm 1.5% higher.

 

[bigdog]

US stocks claw back much of an early loss and finish mixed

Stocks gave up some of their recent gains Monday, though the selling eased toward the end of the day, leaving the major indexes mixed.

The S&P 500 slipped less than 0.1% after having been down 0.3% in the early going. The benchmark index, which is coming off two straight weekly gains, is within 0.2% of the all-time high it reached a month ago.

The Dow Jones Industrial Average also closed lower, while the Nasdaq notched a modest gain. Small-company stocks far outpaced the rest of the market.

The quiet opening to the week follows several choppy weeks as investors continue to gauge the economy’s recovery and the risks of rising inflation. Wall Street faces a relatively light week of economic data, though investors will get more information on how much consumer prices rose last month on Thursday.

“The market is treading water right now and waiting for another catalyst to move higher,” said Sam Stovall, chief investment strategist at CFRA.

The S&P 500 fell 3.37 points to 4,226.52. The Dow lost 126.15 points, or 0.4%, to 34,630.24. The Nasdaq rose 67.23 points, or 0.5%, to 13,881.72. The Russell 2000 index of smaller companies gained 32.76 points, or 1.4%, to 2,319.18.

Banks, industrial stocks and materials companies helped pull the broader market lower. Communications companies and health care stocks made solid gains. Facebook rose 1.9%, while drugmaker Moderna rose 6.6% after it sought regulatory authorization in Europe to let adolescents receive its COVID-19 vaccine.

Biogen soared 38.3% for the biggest gain in the S&P 500 after the Food and Drug Administration said it approved the company’s drug for treating Alzheimer’s disease. Biogen’s drug is the first Alzheimer’s disease treatment approved by the FDA in nearly 20 years.

Treasury yields mostly rose. The yield on the 10-year Treasury inched up to 1.57% from 1.56% late Friday. Crude oil prices were little changed.

ASX 200 futures flat​

The Australian share market looks set to have another subdued day on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day flat.

This follows a mixed start to the week on Wall Street, which saw the Dow Jones fall 0.36%, the S&P 500 drop 0.08%, and the Nasdaq push 0.49% higher.

https://apnews.com/article/financia...mic-business-49dde4530360706a417e0d447764cfd7

US stocks claw back much of an early loss and finish mixed

By DAMIAN J. TROISE and ALEX VEIGA

Stocks gave up some of their recent gains Monday, though the selling eased toward the end of the day, leaving the major indexes mixed.

The S&P 500 slipped less than 0.1% after having been down 0.3% in the early going. The benchmark index, which is coming off two straight weekly gains, is within 0.2% of the all-time high it reached a month ago.

The Dow Jones Industrial Average also closed lower, while the Nasdaq notched a modest gain. Small-company stocks far outpaced the rest of the market.

The quiet opening to the week follows several choppy weeks as investors continue to gauge the economy’s recovery and the risks of rising inflation. Wall Street faces a relatively light week of economic data, though investors will get more information on how much consumer prices rose last month on Thursday.

“The market is treading water right now and waiting for another catalyst to move higher,” said Sam Stovall, chief investment strategist at CFRA.

The S&P 500 fell 3.37 points to 4,226.52. The Dow lost 126.15 points, or 0.4%, to 34,630.24. The Nasdaq rose 67.23 points, or 0.5%, to 13,881.72. The Russell 2000 index of smaller companies gained 32.76 points, or 1.4%, to 2,319.18.

Banks, industrial stocks and materials companies helped pull the broader market lower. Communications companies and health care stocks made solid gains. Facebook rose 1.9%, while drugmaker Moderna rose 6.6% after it sought regulatory authorization in Europe to let adolescents receive its COVID-19 vaccine.

Biogen soared 38.3% for the biggest gain in the S&P 500 after the Food and Drug Administration said it approved the company’s drug for treating Alzheimer’s disease. Biogen’s drug is the first Alzheimer’s disease treatment approved by the FDA in nearly 20 years.

Treasury yields mostly rose. The yield on the 10-year Treasury inched up to 1.57% from 1.56% late Friday. Crude oil prices were little changed.

Cruise line operators rose after several companies announced or confirmed plans to start sailing again this summer. The industry essentially shut down during the virus pandemic. Norwegian Cruise Line added 3.1% and Carnival rose 1.1%.

Corporate buyout plans moved several stocks. U.S. Concrete jumped 29.3% after construction materials company Vulcan Materials said it would buy the company. Design software company Autodesk fell 2.1% after announcing plans to pursue a buyout of Altium.

Investors will get another glimpse into the impact of inflation on Thursday with the Labor Department’s consumer price report for May. Prices on everything from food to clothes and housing has been rising as the economy recovers.

Investors and economists are concerned that a steep rise in prices could crimp the recovery and prompt the Federal Reserve to withdraw some of its support for the economy such as keeping interest rates ultra-low and buying bonds.

Markets in Europe closed mostly higher, while Asian markets ended mixed.

 

[bigdog]

Stocks end mostly higher; Wendy’s becomes latest meme stock

U.S. stock indexes meandered to another uneven finish Tuesday after spending much of the day swaying between small gains and losses. The modest moves reflect a wait-and-see attitude among investors amid a light week of earnings and new economic data, though some corners of the market — cryptocurrencies and some social media-hyped stocks — kept traders busy.

The S&P 500 inched up less than 0.1% after earlier veering between a loss of 0.4% and a gain of 0.2%. The benchmark index has barely moved the last two days after notching two straight weekly gains. The Dow Jones Industrial Average slipped 0.1%, while the Nasdaq mustered a 0.3% gain. Smaller company stocks once again outpaced the broader market.

The S&P 500 remains close to its May 7th all-time high, but has not been able to climb higher.

“We haven’t moved materially lower, probably because right now there aren’t a lot of catalysts to move the market one way or the other,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management.

The S&P 500 added 0.74 points to 4,227.26. The Dow slipped 30.42 points to 34,599.82. The Nasdaq gained 43.19 points to 13,924.91. The Russell 2000 index of smaller companies rose 24.58 points, or 1.1%, to 2,343.76.

A variety of companies that rely on direct consumer spending made solid gains. Domino’s Pizza rose 1.2% and Gap gained 2.9%. Industrial stocks also ticked higher. Energy companies rose along with the price of crude oil.

Those gains were kept in check by falling health care and communication stocks. Banks fell, weighed down as bond yields slipped. The yield on the 10-year Treasury fell to 1.54% from 1.57% late Monday.

Elsewhere in the market, Wendy’s jumped 25.9% as it seemingly joined a list of companies that have gained the attention of individual investors taking their cues from social media forums. Clover Health Investments soared 85.8%. Other companies that have seen their stock values soar and fall sporadically include AMC Entertainment, Blackberry and GameStop.

Investors have been navigating a choppy market as they digest information on how the economy is recovering. The World Bank upgraded its outlook for global growth this year, predicting that COVID-19 vaccinations and massive government stimulus in rich countries will power the fastest worldwide expansion in nearly five decades. The 189-country anti-poverty agency forecasts that the world economy will grow 5.6% this year, up from the 4.1% it forecast in January. The global economy last year shrank 3.5%.

ASX 200 expected to rise​

It looks set to be a positive 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 19 points or 0.25% higher this morning.

This follows a reasonably positive night of trade on Wall Street, which saw the Dow Jones down 0.09%; the S&P 500 up 0.02% and the Nasdaq rise 0.31%.

https://apnews.com/article/financia...mic-business-2e82954726f653216700bcc5abaee764

Stocks end mostly higher; Wendy’s becomes latest meme stock

By DAMIAN J. TROISE and ALEX VEIGA

U.S. stock indexes meandered to another uneven finish Tuesday after spending much of the day swaying between small gains and losses. The modest moves reflect a wait-and-see attitude among investors amid a light week of earnings and new economic data, though some corners of the market — cryptocurrencies and some social media-hyped stocks — kept traders busy.

The S&P 500 inched up less than 0.1% after earlier veering between a loss of 0.4% and a gain of 0.2%. The benchmark index has barely moved the last two days after notching two straight weekly gains. The Dow Jones Industrial Average slipped 0.1%, while the Nasdaq mustered a 0.3% gain. Smaller company stocks once again outpaced the broader market.

The S&P 500 remains close to its May 7th all-time high, but has not been able to climb higher.

“We haven’t moved materially lower, probably because right now there aren’t a lot of catalysts to move the market one way or the other,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management.

The S&P 500 added 0.74 points to 4,227.26. The Dow slipped 30.42 points to 34,599.82. The Nasdaq gained 43.19 points to 13,924.91. The Russell 2000 index of smaller companies rose 24.58 points, or 1.1%, to 2,343.76.

A variety of companies that rely on direct consumer spending made solid gains. Domino’s Pizza rose 1.2% and Gap gained 2.9%. Industrial stocks also ticked higher. Energy companies rose along with the price of crude oil.

Those gains were kept in check by falling health care and communication stocks. Banks fell, weighed down as bond yields slipped. The yield on the 10-year Treasury fell to 1.54% from 1.57% late Monday.

Elsewhere in the market, Wendy’s jumped 25.9% as it seemingly joined a list of companies that have gained the attention of individual investors taking their cues from social media forums. Clover Health Investments soared 85.8%. Other companies that have seen their stock values soar and fall sporadically include AMC Entertainment, Blackberry and GameStop.

Cryptocurrency traders appeared to be in a selling mood. Bitcoin and other popular digital currencies, including Ethereum and Dogecoin, all fell sharply, according to Coindesk. Bitcoin, which climbed above $60,000 early this year, slid 7% to $32,690.

The stock of Fastly, an internet cloud services provider, climbed 10.8% after the company said it had addressed an internal problem that caused dozens of websites around the globe to go down briefly, including the home page of Britain’s government and The New York Times.

Investors have been navigating a choppy market as they digest information on how the economy is recovering. The World Bank upgraded its outlook for global growth this year, predicting that COVID-19 vaccinations and massive government stimulus in rich countries will power the fastest worldwide expansion in nearly five decades. The 189-country anti-poverty agency forecasts that the world economy will grow 5.6% this year, up from the 4.1% it forecast in January. The global economy last year shrank 3.5%.

The upbeat forecasts for growth and greater demand from consumers have raised concerns about rising inflation. Investors have been trying to gauge whether the increase will be temporary and tied to the recovery or will run hot and become a more permanent fixture of the post-pandemic economy. The path of inflation could determine whether central banks continue to generously support economies or pull back.

The economy is still being distorted by the pandemic and its aftermath. Factories are still ramping up production, but it’s simply not quick enough to meet demand for a wide range of goods as people move past the pandemic. That has resulted in prices on everything from food to household staples rising.

“Right now it’s just too many consumers taking too few goods,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors.

 

[bigdog]

US indexes end lower; more volatility for online favorites

A slide in banks and industrial companies nudged stocks on Wall Street to modest losses Wednesday after an early gain faded in the last half-hour of trading. Stocks championed by hordes of online retail investors, the “meme” stocks as they have become known, were volatile once again.

The S&P 500 slipped 0.2%, erasing its meager gain from a day earlier. The benchmark index’s modest moves this week have it on track for its first weekly loss in three weeks. The Dow Jones Industrial Average gave up 0.4%, while the Nasdaq held up somewhat better, ending down just 0.1%.

Treasury yields slipped. The yield on the 10-year Treasury fell to 1.49% from 1.52% late Tuesday. The falling yields broadly weighed down banks, which rely on higher yields to charge more lucrative interest on loans. JPMorgan and Citigroup fell 1.2%.

Several health care companies made solid gains. Merck rose 2.3% after announcing a supply agreement with the U.S. and Canada for a potential COVID-19 treatment. AbbVie gained 1.5% after announcing a collaboration with Caraway Therapeutics to make treatments for Parkinson’s disease and other neurodegenerative disorders.

All told, the S&P 500 fell 7.71 points to 4,219.55. The Dow lost 152.68 points to 34,447.14, while the Nasdaq Composite gave up an early gain, shedding 13.16 points to 13,911.75. The tech-heavy index was lifted by the same Big Tech companies that have pushed it generally higher for the last 18 months. Microsoft rose 0.4% and Amazon added 0.5%.

Small company stocks, which have outgained the broader market this year, also fell. The Russell 2000 index gave up 16.63 points, or 0.7%, to 2,327.13.

Investors continue to focus a significant amount of attention on inflation. China’s producer price index, which measures prices of raw goods and services, jumped 9% from a year earlier in May, the fastest increase since 2008 and above analysts’ forecasts. Surging prices for oil and other commodities and manufacturing components such as semiconductors were the main factor behind the jump in producer prices there.

ASX 200 expected to fall

The Australian share market looks set to extend its decline on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 8 points or 0.1% lower this morning.

This follows a poor night of trade on Wall Street, which saw the Dow Jones fall 0.44%, the S&P 500 drop 0.18%, and the Nasdaq edge 0.09% lower.

https://apnews.com/article/financia...rus-pandemic-f79790f17ac242e9351e571a79147ca6

US indexes end lower; more volatility for online favorites

By DAMIAN J. TROISE and ALEX VEIGA

A slide in banks and industrial companies nudged stocks on Wall Street to modest losses Wednesday after an early gain faded in the last half-hour of trading. Stocks championed by hordes of online retail investors, the “meme” stocks as they have become known, were volatile once again.

The S&P 500 slipped 0.2%, erasing its meager gain from a day earlier. The benchmark index’s modest moves this week have it on track for its first weekly loss in three weeks. The Dow Jones Industrial Average gave up 0.4%, while the Nasdaq held up somewhat better, ending down just 0.1%.

Treasury yields slipped. The yield on the 10-year Treasury fell to 1.49% from 1.52% late Tuesday. The falling yields broadly weighed down banks, which rely on higher yields to charge more lucrative interest on loans. JPMorgan and Citigroup fell 1.2%.

Several health care companies made solid gains. Merck rose 2.3% after announcing a supply agreement with the U.S. and Canada for a potential COVID-19 treatment. AbbVie gained 1.5% after announcing a collaboration with Caraway Therapeutics to make treatments for Parkinson’s disease and other neurodegenerative disorders.

All told, the S&P 500 fell 7.71 points to 4,219.55. The Dow lost 152.68 points to 34,447.14, while the Nasdaq Composite gave up an early gain, shedding 13.16 points to 13,911.75. The tech-heavy index was lifted by the same Big Tech companies that have pushed it generally higher for the last 18 months. Microsoft rose 0.4% and Amazon added 0.5%.

Small company stocks, which have outgained the broader market this year, also fell. The Russell 2000 index gave up 16.63 points, or 0.7%, to 2,327.13.

Investors continue to focus a significant amount of attention on inflation. China’s producer price index, which measures prices of raw goods and services, jumped 9% from a year earlier in May, the fastest increase since 2008 and above analysts’ forecasts. Surging prices for oil and other commodities and manufacturing components such as semiconductors were the main factor behind the jump in producer prices there.

Aside from surging prices of raw materials, fuel and other items needed for manufacturing, factories are struggling to keep up with demand as the pandemic recedes in many places. That has pushed up prices of everything from food to household staples.

Investors will get closely watched U.S. inflation data on Thursday and how it might impact ultra-low interest rates and other market-supporting policies.

The market has been relatively constrained over the last several days and investors have parsed any data to judge whether rising inflation will be temporary, as the Federal Reserve thinks, or more permanent.

The Labor Department’s release of the consumer price index Thursday will add to that discussion, particularly since it comes shortly before the Federal Reserve’s next meeting on interest rate policy next week.

“Is it transitory, or is the Fed behind the curve?” said Sal Bruno, chief investment officer at IndexIQ. “That is going to be a lot of the discussion tomorrow with people reading into which way we’re going.”

Elsewhere in the market, volatility in stocks embraced by investors using online forums like Reddit continued for another day Wednesday. Clover Health fell 23.6% while AMC Entertainment sank 10.4%. Wendy’s sank 12.7% after soaring 25.9% a day earlier.

The original “meme” stock, GameStop, said after the closing bell Wednesday that it has brought on a pair of Amazon veterans as its new chief executive and chief financial officer to aid in its much anticipated digital turnaround. The company also reported a smaller quarterly loss than a year ago as revenue increased. Its shares fell 3% in after-hours trading.

 

[bigdog]

US stocks end higher, erasing weekly loss for the S&P 500

Health care and technology companies helped drive stocks higher Thursday, bringing the S&P 500 index to a record high and out of the red for the week.

The benchmark index rose 0.5%, and is on track for its third straight weekly gain. Bond yields initially rose, then mostly fell after a much-anticipated report showing a big jump in inflation last month.

The Labor Department said consumer prices jumped 5% in May, the biggest year-over-year increase since 2008. The figure was higher than the 4.6% rise that economists had expected.

While investors have been concerned about inflation for weeks, the May report seemed to reinforce the growing consensus that any increase in inflation will be temporary. A significant portion of the rise in consumer prices was tied to the sale of used cars, for example, which is largely attributed to the fact that many rental car companies are buying vehicles to beef up their fleets as people return to traveling.

“Keep in mind that as we start to make our way back to a full economic recovery, there is pent up demand and supply constraints from raw material and labor shortages,” said Mike Loewengart, a managing director at E-Trade Financial. “This creates the type of inflation that the Fed believes is transitory, meaning it too shall pass. Whether or not they are correct remains to be seen.”

The S&P 500 gained 19.63 points to 4,239.18, just beating the index’s previous all-time high set on May 7th. The Dow Jones Industrial Average edged up 19.10 points, or 0.1%, to 34,466.24. The Nasdaq Composite rose 108.58 points, or 0.8%, to 14,020.33.

Smaller company stocks lagged the broader market. The Russell 2000 index fell 15.72 points, or 0.7%, to 2,311.41.

Bond yields initially rose after the inflation data, then fell broadly by late afternoon. The yield on the 10-year Treasury note slipped to 1.45% from 1.49% late Wednesday.

Organon jumped 6.6% for the biggest gain in the S&P 500 and Pfizer rose 2.2% as health care stocks led the market higher. Technology and communication stocks also rose. Microsoft gained 1.4% and Activision Blizzard added 1.2%. Banks, industrial and materials companies were among the decliners. JPMorgan slid 1.6%, while Caterpillar dropped 3.8%. Vulcan Materials fell 3.1%.

Investors also reacted positively to more data that showed continued improvement in the labor market. The number of Americans who filed for unemployment benefits last week fell by 9,000 to 376,000, another pandemic low.

Stocks have been meandering all week as investors looked ahead to another inflation snapshot. The worry is that if signs of inflation are more than transitory, as the Federal Reserve has suggested, it could prompt central banks to withdraw stimulus from the economy to combat rising prices.

ASX 200 expected to edge higher

The Australian share market looks set to end the week on a positive but subdued note. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points higher this morning.

This follows a strong night of trade on Wall Street, which saw the Dow Jones edge higher 0.06%, the S&P 500 rise 0.47%, and the Nasdaq jump 0.78%.

https://apnews.com/article/financia...ion-business-c24ff2bb1a7955a3327b2a723ae9db25

US stocks end higher, erasing weekly loss for the S&P 500

By ALEX VEIGA

Health care and technology companies helped drive stocks higher Thursday, bringing the S&P 500 index to a record high and out of the red for the week.

The benchmark index rose 0.5%, and is on track for its third straight weekly gain. Bond yields initially rose, then mostly fell after a much-anticipated report showing a big jump in inflation last month.

The Labor Department said consumer prices jumped 5% in May, the biggest year-over-year increase since 2008. The figure was higher than the 4.6% rise that economists had expected.

While investors have been concerned about inflation for weeks, the May report seemed to reinforce the growing consensus that any increase in inflation will be temporary. A significant portion of the rise in consumer prices was tied to the sale of used cars, for example, which is largely attributed to the fact that many rental car companies are buying vehicles to beef up their fleets as people return to traveling.

“Keep in mind that as we start to make our way back to a full economic recovery, there is pent up demand and supply constraints from raw material and labor shortages,” said Mike Loewengart, a managing director at E-Trade Financial. “This creates the type of inflation that the Fed believes is transitory, meaning it too shall pass. Whether or not they are correct remains to be seen.”

The S&P 500 gained 19.63 points to 4,239.18, just beating the index’s previous all-time high set on May 7th. The Dow Jones Industrial Average edged up 19.10 points, or 0.1%, to 34,466.24. The Nasdaq Composite rose 108.58 points, or 0.8%, to 14,020.33.

Smaller company stocks lagged the broader market. The Russell 2000 index fell 15.72 points, or 0.7%, to 2,311.41.

Bond yields initially rose after the inflation data, then fell broadly by late afternoon. The yield on the 10-year Treasury note slipped to 1.45% from 1.49% late Wednesday.

Organon jumped 6.6% for the biggest gain in the S&P 500 and Pfizer rose 2.2% as health care stocks led the market higher. Technology and communication stocks also rose. Microsoft gained 1.4% and Activision Blizzard added 1.2%. Banks, industrial and materials companies were among the decliners. JPMorgan slid 1.6%, while Caterpillar dropped 3.8%. Vulcan Materials fell 3.1%.

Investors also reacted positively to more data that showed continued improvement in the labor market. The number of Americans who filed for unemployment benefits last week fell by 9,000 to 376,000, another pandemic low.

Stocks have been meandering all week as investors looked ahead to another inflation snapshot. The worry is that if signs of inflation are more than transitory, as the Federal Reserve has suggested, it could prompt central banks to withdraw stimulus from the economy to combat rising prices.

“The inflation outlook has rightfully been top of mind since last month’s blowout report,” Ryan Detrick, market strategist at LPL Financial wrote in a research note. “Under the hood, though, we think the picture is a bit more sanguine than the headlines would suggest, and still believe inflation will be relatively well-contained over the intermediate-to-long term.”

Investors will get to see next week how the Fed is reading the latest inflation barometer and what monetary policy changes, if any, the central bank may consider. The Fed’s policymaking committee is due to deliver its latest economic and interest rate policy update next Wednesday.

Markets will also be tuning in this weekend for any developments at the summit of the Group of Seven in Britain. At the top of the leaders’ agenda is helping countries recover from the coronavirus pandemic, which has killed more than 3.7 million people and wrecked economies.

The G-7 leaders are meeting for three days at a British seaside resort. It’s the first such gathering since before the pandemic.

 

[bigdog]

Stocks notch modest gains and a 3rd winning week for S&P 500

Wall Street closed out a mostly listless week Friday with a wobbly day of trading that helped nudge the S&P 500 to its third straight weekly gain.

The benchmark index edged up 0.2% after spending much of the day in the red. The small uptick was enough to lift the S&P 500 to an all-time high for the second day in a row.

Technology companies and banks accounted for much of the upward move. The gains were offset by a broad slide in health care, energy and real estate stocks. Bond yields were mixed.

With the exception of select “meme” stocks like GameStop and AMC Entertainment hyped by individual investors in online forums, the broader market was relatively quiet this week. Investors remain in wait-and-see mode ahead of the Federal Reserve’s upcoming meeting of policymakers Wednesday.

Wall Street is keen for clues about how much of a threat the central bank deems rising inflation as the economy emerges from its pandemic-induced recession, and whether the Fed has begun considering beginning to taper its support for the economy.

“No one is suggesting that it will be at this meeting, but the market is poised for the Fed to at least even tangentially suggest that they’re discussing” tapering, said Quincy Krosby, chief market strategist at Prudential Financial.

The S&P 500 rose 8.26 points to 4,247.44. The Dow Jones Industrial Average added 13.36 points, or less than 0.1%, to 34,479.60. The Nasdaq gained 49.09 points, or 0.4%, to 14,069.42. The tech-heavy index also notched a weekly gain.

Investors bid up shares in smaller company stocks. The Russell 2000 index picked up 24.40 points, or 1.1%, to 2,335.81. The index is up 18.3% this year, outgaining the S&P 500′s advance of 13.1% and the Nasdaq’s 9.2% gain.

Among the winning technology and financial stocks were chipmaker Nvidia, which rose 2.3%, and Wells Fargo, which gained 1.3%. Several retailers also rose. V.F. Corp., maker of Vans shoes and other apparel, climbed 4.7% for the biggest gain in the S&P 500, while Gap rose 3.2% and L Brands gained 2.3%.

Traders dumped shares in several health care companies after they issued disappointing development updates. Vertex Pharmaceuticals dropped 11% after telling investors it will end development of a potential treatment for a genetic condition that targets the liver. Incyte fell 5.7% as its potential eczema cream ruxolitinib faces a delayed regulatory review. The two stocks topped the list of decliners in the S&P 500.

https://apnews.com/article/financia...rus-pandemic-5fcf7940c5f4816285f84f0830029985

Stocks notch modest gains and a 3rd winning week for S&P 500

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street closed out a mostly listless week Friday with a wobbly day of trading that helped nudge the S&P 500 to its third straight weekly gain.

The benchmark index edged up 0.2% after spending much of the day in the red. The small uptick was enough to lift the S&P 500 to an all-time high for the second day in a row.

Technology companies and banks accounted for much of the upward move. The gains were offset by a broad slide in health care, energy and real estate stocks. Bond yields were mixed.

With the exception of select “meme” stocks like GameStop and AMC Entertainment hyped by individual investors in online forums, the broader market was relatively quiet this week. Investors remain in wait-and-see mode ahead of the Federal Reserve’s upcoming meeting of policymakers Wednesday.

Wall Street is keen for clues about how much of a threat the central bank deems rising inflation as the economy emerges from its pandemic-induced recession, and whether the Fed has begun considering beginning to taper its support for the economy.

“No one is suggesting that it will be at this meeting, but the market is poised for the Fed to at least even tangentially suggest that they’re discussing” tapering, said Quincy Krosby, chief market strategist at Prudential Financial.

The S&P 500 rose 8.26 points to 4,247.44. The Dow Jones Industrial Average added 13.36 points, or less than 0.1%, to 34,479.60. The Nasdaq gained 49.09 points, or 0.4%, to 14,069.42. The tech-heavy index also notched a weekly gain.

Investors bid up shares in smaller company stocks. The Russell 2000 index picked up 24.40 points, or 1.1%, to 2,335.81. The index is up 18.3% this year, outgaining the S&P 500′s advance of 13.1% and the Nasdaq’s 9.2% gain.

Among the winning technology and financial stocks were chipmaker Nvidia, which rose 2.3%, and Wells Fargo, which gained 1.3%. Several retailers also rose. V.F. Corp., maker of Vans shoes and other apparel, climbed 4.7% for the biggest gain in the S&P 500, while Gap rose 3.2% and L Brands gained 2.3%.

Traders dumped shares in several health care companies after they issued disappointing development updates. Vertex Pharmaceuticals dropped 11% after telling investors it will end development of a potential treatment for a genetic condition that targets the liver. Incyte fell 5.7% as its potential eczema cream ruxolitinib faces a delayed regulatory review. The two stocks topped the list of decliners in the S&P 500.

Investors were relieved to see Thursday that a much-anticipated report showed that a big rise in consumer-level inflation last month was mostly attributed to temporary factors. That could mean less pressure on the Fed to pull back on its measures supporting the economy.

“You kind of have this notion that worries about inflation from the investor base might have peaked,” said Ross Mayfield, investment strategist at Baird.

A significant share of May’s rise in consumer prices was tied to the sale of used cars, which is largely attributed to purchases by rental car companies beefing up their fleets as people return to traveling.

Bond yields were mixed Friday, though the yield on the closely watched 10-year Treasury note was trading at 1.46%, down from 1.57% a week ago. Yields have been mostly headed lower this week despite reports showing more strength in the economy and possible signs of inflation.

 

[bigdog]

ASX closed today for Queens Birthday holiday Monday June 14

 

[bigdog]

Australian, Taiwan and Honk Kong markets were closed for a Monday holiday

Gains for some tech giants nudge S&P to another record high

Technology companies helped lift stocks higher on Wall Street, nudging the S&P 500 to its third straight all-time high, even as other parts of the market faltered.

A burst of buying in the final 10 minutes of trading sent the benchmark index 0.2% higher. The S&P 500 had been down 0.3% earlier amid another bout of choppy trading as Wall Street awaits the latest take from the Federal Reserve on inflation.

Investors are trying to gauge the strength of the economic recovery and whether emerging signs of inflation will be transitory, as the central bank believes. The Fed delivers its interest rate policy update Wednesday afternoon.

“Most of this is just positioning in front of the Fed later this week,” said Willie Delwiche, investment strategist at All Star Charts. Investors are “trying to get a sense of not just what the Fed is going to say in terms of announcements, but what they expect in terms of the path of monetary policy and the economy going forward.”

The S&P 500 added 7.71 points to 4,255.15. The index has notched a weekly gain three weeks in a row. The Dow Jones Industrial Average fell 85.85 points, or 0.2%, to 34,393.75. The Nasdaq rose 104.72 points, or 0.7%, to 14,174.14.

Small-company stocks fell. The Russell 2000 index lost 9.66 points, or 0.4%, to 2,326.15.

Among the tech sector winners Monday were Apple, which rose 2.5%, and Adobe, which gained 2.9%. Several large communications companies also made gains. Facebook rose 1.7% and Netflix gained 2.3%. Those gains offset a broad decline in financial, industrial and materials stocks, among others. JPMorgan dropped 1.7%.

Wall Street is trying to gauge the strength of the economic recovery, the impact rising inflation is having on its trajectory, and the Fed’s next move.

Investors have been worried that the Fed could ease up on bond purchases and other stimulus measures as the economy recovers. No policy changes are expected immediately, but comments on a shift in policy could jostle an already skittish market.

ASX 200 expected to storm higher​

The Australian share market looks set to start the week in style on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 56 points or 0.8% higher this morning.

This follows a reasonably positive start to the week on Wall Street, which saw the Dow Jones fall 0.25% but the S&P 500 rise 0.18% and the Nasdaq climb a sizeable 0.74%.

https://apnews.com/article/financial-markets-business-ba5e78a55eeb923cec0ca3a8f09d5102

Gains for some tech giants nudge S&P to another record high

By DAMIAN J. TROISE and ALEX VEIGA

Technology companies helped lift stocks higher on Wall Street, nudging the S&P 500 to its third straight all-time high, even as other parts of the market faltered.

A burst of buying in the final 10 minutes of trading sent the benchmark index 0.2% higher. The S&P 500 had been down 0.3% earlier amid another bout of choppy trading as Wall Street awaits the latest take from the Federal Reserve on inflation.

Investors are trying to gauge the strength of the economic recovery and whether emerging signs of inflation will be transitory, as the central bank believes. The Fed delivers its interest rate policy update Wednesday afternoon.

“Most of this is just positioning in front of the Fed later this week,” said Willie Delwiche, investment strategist at All Star Charts. Investors are “trying to get a sense of not just what the Fed is going to say in terms of announcements, but what they expect in terms of the path of monetary policy and the economy going forward.”

The S&P 500 added 7.71 points to 4,255.15. The index has notched a weekly gain three weeks in a row. The Dow Jones Industrial Average fell 85.85 points, or 0.2%, to 34,393.75. The Nasdaq rose 104.72 points, or 0.7%, to 14,174.14.

Small-company stocks fell. The Russell 2000 index lost 9.66 points, or 0.4%, to 2,326.15.

Among the tech sector winners Monday were Apple, which rose 2.5%, and Adobe, which gained 2.9%. Several large communications companies also made gains. Facebook rose 1.7% and Netflix gained 2.3%. Those gains offset a broad decline in financial, industrial and materials stocks, among others. JPMorgan dropped 1.7%.

Wall Street is trying to gauge the strength of the economic recovery, the impact rising inflation is having on its trajectory, and the Fed’s next move.

Investors have been worried that the Fed could ease up on bond purchases and other stimulus measures as the economy recovers. No policy changes are expected immediately, but comments on a shift in policy could jostle an already skittish market.

Fed officials have maintained that any rise in inflation will be temporary as the economy recovers.

“There’s still this debate on inflation and, notwithstanding what the Fed does and whether yields move down, there’s still some upward pricing pressure,” said Tom Martin, senior portfolio manager with Globalt Investments.

A boost in demand for goods has helped fuel a rise in the cost of everything from food to cars and household goods. Shipping costs are also rising and adding to the increase in prices. The uncertainty over inflation has been fueling much of the back-and-forth in the market between stocks that are considered safer value holdings versus those with more potential for sharp growth.

“As you go into the summer and you have uncertainty about inflation, the fed and the stimulus, you’ll kind of see people neutralizing bets,” Martin said.

Lordstown Motors sank 18.8% after the CEO and CFO resigned as problems mount for the startup electric truck maker.

Novavax gave up an early gain, dropping 0.9%. The vaccine maker said its COVID-19 shot was highly effective against the disease and also protected against variants in a large study in the U.S. and Mexico. The company is facing raw-material shortages, though, and plans to seek authorization for the shots by the end of September.

Bond prices fell, sending yields mostly higher. The yield on the 10-year Treasury note rose to 1.50% from 1.46% late Friday.

“You don’t get a message from the bond market that it’s worried either about persistent inflation or about the Fed doing something dramatic in terms of not being the buyer of bonds that it has been in recent quarters,” Delwiche said.

European markets were mostly higher. Several markets in Asia were closed for a holiday.

 

[bigdog]

US Stocks Dip From Records Ahead of Fed Decision on Rates

U.S. stocks slipped from their record heights Tuesday as investors wait to hear whether the Federal Reserve will give any clue about when it may let up on its massive support for markets.

The S&P 500 dipped 8.56, or 0.2%, to 4,246.59, as the Federal Reserve began a two-day meeting on interest-rate policy. A day earlier, the index returned to an all-time high amid optimism that ultralow interest rates pegged by the Fed, COVID-19 vaccinations and financial support from the government are revving up the economy.

The Dow Jones Industrial Average lost 94.42 points, or 0.3%, to 34,299.33. The Nasdaq composite fell 101.29, or 0.7%, to 14,072.86 from its own record.

The S&P 500 was down as much as 0.4% earlier in the day, after a report showed inflation on the wholesale level leaped last month by even more than economists expected. Prices for producers were 6.6% higher in May than a year earlier, the highest figure on record going back to 2010 and the latest evidence that inflation is bursting higher across the economy.

The fear is that if higher inflation gets entrenched, it could force the Fed to pull back on the $120 billion in monthly purchases of bonds it's pledged to keep mortgages cheap and longer-term interest rates low, as well as raise short-term interest rates off their record low.

The Fed has so far said that it sees higher inflation as being only temporary, and it will announce its latest decision on rate policy Wednesday afternoon.

“From a prices standpoint, we’re seeing inflationary pressure, and we believe the jury is still out on the timing and extent of when we see a leveling or whether this new new normal of higher prices is cemented,” said Greg Bassuk, founder and CEO of AXS Investments.

Most economists expect the Fed to say again on Wednesday that it sees higher inflation being only temporary, which would allow it to hold steady on its support for markets. But they also say Wednesday afternoon could offer the first sign that the Fed is mulling when to start slowing its purchases of bonds.

Many investors agree with the Fed’s view that higher inflation won’t last very long, and that it’s the expected result of an economy escaping out of pandemic lockdowns. A survey of fund managers said that 72% say inflation is only “transitory,” according to BofA Global Research. That has the majority saying that any upcoming drop in stock prices would likely be less than 10%.

Technology stocks were one of the biggest drags on the S&P 500, though the majority of stocks within the index rose.

Energy companies had solid gains as the price of crude oil pushed higher. Exxon Mobil gained 3.6%, and Chevron climbed 2.2%.

ASX 200 expected to edge lower​

The Australian share market looks set to give back some of its recent gains on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 9 points or 0.1% lower this morning.

This follows a nervy night of trade on Wall Street, which saw the Dow Jones fall 0.27%, the S&P 500 drop 0.2%, and the Nasdaq tumble 0.71%.

https://www.usnews.com/news/busines...mixed-after-tech-giants-nudge-s-p-to-new-high

US Stocks Dip From Records Ahead of Fed Decision on Rates

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

NEW YORK (AP) — U.S. stocks slipped from their record heights Tuesday as investors wait to hear whether the Federal Reserve will give any clue about when it may let up on its massive support for markets.

The S&P 500 dipped 8.56, or 0.2%, to 4,246.59, as the Federal Reserve began a two-day meeting on interest-rate policy. A day earlier, the index returned to an all-time high amid optimism that ultralow interest rates pegged by the Fed, COVID-19 vaccinations and financial support from the government are revving up the economy.

The Dow Jones Industrial Average lost 94.42 points, or 0.3%, to 34,299.33. The Nasdaq composite fell 101.29, or 0.7%, to 14,072.86 from its own record.

The S&P 500 was down as much as 0.4% earlier in the day, after a report showed inflation on the wholesale level leaped last month by even more than economists expected. Prices for producers were 6.6% higher in May than a year earlier, the highest figure on record going back to 2010 and the latest evidence that inflation is bursting higher across the economy.

The fear is that if higher inflation gets entrenched, it could force the Fed to pull back on the $120 billion in monthly purchases of bonds it's pledged to keep mortgages cheap and longer-term interest rates low, as well as raise short-term interest rates off their record low.

The Fed has so far said that it sees higher inflation as being only temporary, and it will announce its latest decision on rate policy Wednesday afternoon.

“From a prices standpoint, we’re seeing inflationary pressure, and we believe the jury is still out on the timing and extent of when we see a leveling or whether this new new normal of higher prices is cemented,” said Greg Bassuk, founder and CEO of AXS Investments.

Most economists expect the Fed to say again on Wednesday that it sees higher inflation being only temporary, which would allow it to hold steady on its support for markets. But they also say Wednesday afternoon could offer the first sign that the Fed is mulling when to start slowing its purchases of bonds.

Many investors agree with the Fed’s view that higher inflation won’t last very long, and that it’s the expected result of an economy escaping out of pandemic lockdowns. A survey of fund managers said that 72% say inflation is only “transitory,” according to BofA Global Research. That has the majority saying that any upcoming drop in stock prices would likely be less than 10%.

A peaceful tapering of bond purchases could allow prices to remain high across markets, even amid criticism that they’ve grown too expensive, unlike the pain that would result from a quick shutoff of Fed support.

There are limited signs that inflation may be cooling in some parts of the economy. Lumber and copper prices have dropped from their highs a few weeks ago. Copper sank another 4.3% Tuesday, and miner Freeport-McMoRan's stock fell 4.8%.

Other reports on the economy Tuesday painted a mixed picture. Retail sales fell 1.3% in May from April, slamming into reverse after a 0.9% gain the prior month, for a much steeper drop than economists expected.

Part of that is likely the fading effect of rescue payments the U.S. government sent to households earlier this year, which boosted spending in March and April. But economists said it could also be a sign that Americans are shifting more of their spending toward trips, eating out and other services as the economy reopens, with less going to things bought at retailers.

A separate report said that industrial production across the country rose more last month than economists expected.

Technology stocks were one of the biggest drags on the S&P 500, though the majority of stocks within the index rose.

Energy companies had solid gains as the price of crude oil pushed higher. Exxon Mobil gained 3.6%, and Chevron climbed 2.2%.

Bond yields were relatively stable. The yield on the 10-year Treasury note dipped to 1.49% from 1.50% late Monday.

Earlier in the day, European stock markets closed out with modest gains. Asian markets were mixed, with Japan's Nikkei 225 up 1% and stocks in Shanghai down 0.9%

 

[bigdog]

Stocks down, yields up as Fed discusses dialing back support

U.S. stocks fell and bond yields climbed Wednesday after the Federal Reserve signaled it may start easing off the accelerator on its massive support for the economy earlier than previously thought.

The S&P 500 fell 22.89, or 0.5%, to 4,223.70 after the Fed unveiled a highly anticipated set of projections by its policymakers, which showed some expect short-term rates to rise half a percentage point by late 2023. The Fed’s chair also said it has begun talking about the possibility of slowing down the bond purchases it makes every month to keep longer-term rates low.

Super-low interest rates have been one of the main sources of fuel for the stock market’s rocket ride to records, with the most recent coming on Monday. That’s why the immediate reaction for investors to the Fed’s comments was to send stocks lower and bond yields higher, and the S&P 500 lost as much as 1% in the afternoon. But the moves moderated as the Fed’s chair, Jerome Powell, said in a press conference that any changes are likely still a ways away.

The Dow Jones Industrial Average fell 265.66 points, or 0.8%, to 34,033.67, paring a loss that hit 382 points shortly after the Fed’s announcement. The Nasdaq composite fell 33.17, or 0.2%, to 14,039.68 after earlier being down 1.2%.

In the bond market, the yield on the 10-year Treasury climbed to 1.55% from 1.50% late Tuesday. The two-year yield, which moves more closely with expectations for Fed policy, rose to 0.20% from 0.16%.

After getting over the surprise of seeing several policymakers move up forecasts for raising rates, Nate Thooft, senior managing director at Manulife Investment Management, said that his focus turned to their projections for inflation and the economy’s growth. Neither changed much for next year or for the long term.

“To me, that says the confidence level they have in their outlook is higher, not that their outlook has changed,” Thooft said.

Before, uncertainty about the economy’s recovery from the pandemic may have forced Fed officials to push the timeline for rate hikes further into the future. Now, with widespread vaccinations helping to send the economy roaring out of its prior coma, the central bank may be feeling more confident.

But moving up the timeline for rate hikes probably also moves up the timing for a potential slowdown in the Fed’s bond purchases.

In his press conference following the Fed’s announcement, Powell said that would be the bigger near-term change for markets. He said again that the purchases will continue until “substantial further progress has been made” in getting the economy to full employment and prices to be stable.

Within the S&P 500, four stocks fell for every one that rose. One of the biggest losses came from Oracle, which fell 5.6% after it laid out investment plans that could drag on its upcoming profitability.

But he acknowledged that conditions have improved enough to start discussing when to taper the purchases. “You can think about this meeting as the ‘talking about talking about’ meeting,” he said.

ASX 200 expected to rise​

The Australian share market looks set to rise again on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 15 points or 0.2% higher this morning.

This is despite it being a poor night of trade on Wall Street, which saw the Dow Jones fall 0.77%, the S&P 500 drop 0.54%, and the Nasdaq fall 0.24%.

https://apnews.com/article/financia...mic-business-a2b71c7746c9b30e24df5e77cabc8daa

Stocks down, yields up as Fed discusses dialing back support

By DAMIAN J. TROISE and STAN CHOE

NEW YORK (AP) — U.S. stocks fell and bond yields climbed Wednesday after the Federal Reserve signaled it may start easing off the accelerator on its massive support for the economy earlier than previously thought.

The S&P 500 fell 22.89, or 0.5%, to 4,223.70 after the Fed unveiled a highly anticipated set of projections by its policymakers, which showed some expect short-term rates to rise half a percentage point by late 2023. The Fed’s chair also said it has begun talking about the possibility of slowing down the bond purchases it makes every month to keep longer-term rates low.

Super-low interest rates have been one of the main sources of fuel for the stock market’s rocket ride to records, with the most recent coming on Monday. That’s why the immediate reaction for investors to the Fed’s comments was to send stocks lower and bond yields higher, and the S&P 500 lost as much as 1% in the afternoon. But the moves moderated as the Fed’s chair, Jerome Powell, said in a press conference that any changes are likely still a ways away.

The Dow Jones Industrial Average fell 265.66 points, or 0.8%, to 34,033.67, paring a loss that hit 382 points shortly after the Fed’s announcement. The Nasdaq composite fell 33.17, or 0.2%, to 14,039.68 after earlier being down 1.2%.

In the bond market, the yield on the 10-year Treasury climbed to 1.55% from 1.50% late Tuesday. The two-year yield, which moves more closely with expectations for Fed policy, rose to 0.20% from 0.16%.

After getting over the surprise of seeing several policymakers move up forecasts for raising rates, Nate Thooft, senior managing director at Manulife Investment Management, said that his focus turned to their projections for inflation and the economy’s growth. Neither changed much for next year or for the long term.

“To me, that says the confidence level they have in their outlook is higher, not that their outlook has changed,” Thooft said.

Before, uncertainty about the economy’s recovery from the pandemic may have forced Fed officials to push the timeline for rate hikes further into the future. Now, with widespread vaccinations helping to send the economy roaring out of its prior coma, the central bank may be feeling more confident.

But moving up the timeline for rate hikes probably also moves up the timing for a potential slowdown in the Fed’s bond purchases.

In his press conference following the Fed’s announcement, Powell said that would be the bigger near-term change for markets. He said again that the purchases will continue until “substantial further progress has been made” in getting the economy to full employment and prices to be stable.

But he acknowledged that conditions have improved enough to start discussing when to taper the purchases. “You can think about this meeting as the ‘talking about talking about’ meeting,” he said.

That has some investors circling late August on the calendar, when the Federal Reserve Bank of Kansas City will host its annual symposium in Jackson Hole, Wyoming. That gathering has been the setting for big Fed pronouncements in the past, and maybe that’s when Powell will offer more guidance about when the taper will begin.

A recent burst of inflation had raised concerns that the Fed will have to tighten the spigot on its support. Prices are leaping for used cars, airfares and other things across the economy as it hurtles back to life. The consumer price index surged 5% in May from a year earlier, for example.

Fed policymakers on Wednesday raised their expectations for inflation this year. The median projection for the Fed’s preferred measure of inflation was for 3.4%, up from 2.4% in March.

But the Fed still sees the burst being only temporary as the economy works its way through supply shortages and other short-term factors. The median projection sees inflation dropping to 2.1% next year and 2.2% in 2023. That’s up only slightly from their earlier projection of 2% for 2022 and 2.1% for 2023, made in March.

For economic growth in 2022, the median projection for policymakers held steady at 3.3%. For 2023, it rose to 2.4% from an earlier projection of 2.2%.

Within the S&P 500, four stocks fell for every one that rose. One of the biggest losses came from Oracle, which fell 5.6% after it laid out investment plans that could drag on its upcoming profitability.

Furniture company La-Z-Boy fell 11.7% after warning investors that dramatically higher prices it’s paying for raw materials will drag down how much profit it makes from every $1 of sales.

General Motors was among the few gainers. It rose 1.6% after saying it will raise spending on electric and autonomous vehicles and add two U.S. battery factories.

 

[bigdog]

Most stocks fall, tech holds up as markets digest Fed moves

The S&P 500 ended Thursday barely changed after stocks sloshed around in mixed trading, as investors make preparations for a future where the Federal Reserve is no longer doing everything it can to keep interest rates super low.

Markets around the world were mixed but mostly calm after investors in Asia and Europe got their first chance to react to the Federal Reserve’s signaling on Wednesday that it may start raising short-term interest rates by late 2023. The Fed’s chair also said it began discussing the possibility of slowing its bond-buying program. Such support has been a key reason for the stock market’s resurgence to records, with the most recent coming Monday.

The S&P 500 slipped 1.84 points, or less than 0.1%, to 4,221.86 after earlier meandering from a 0.2% gain to a 0.7% loss. Most of the stocks in the index and across Wall Street were lower, but gains for Apple, Microsoft and a few other tech heavyweights helped offset the losses.

The Dow Jones Industrial Average dropped 210.22, or 0.6%, to 33,823.45, while the Nasdaq composite rose 121.67, or 0.9%, to 14,161.35, lifted by the gains for tech and other high-growth stocks.

In the bond market, the yield on the 10-year Treasury note gave back nearly all of its spurt from a day before. It fell back to 1.51% from 1.57% late Wednesday.

The two-year yield, which tends to move more with expectations for Fed actions, was steadier. It rose to 0.22% from 0.21%.

The first action the Fed is likely to take would be a slowdown in its $120 billion of monthly bond purchases, which are helping to keep mortgages cheap, but the Fed’s chair said such a tapering is still likely “a ways away.”

Any easing up on the Fed’s aid for the economy would be a big change for markets, which have feasted on easy conditions after the central bank slashed short-term rates to zero and brought in other emergency programs.

While the economy still needs support, the recovery is proving to be strong enough that it does not need the same emergency measures taken at the beginning of the pandemic, said Stephanie Link, chief investment strategist and portfolio manager at Hightower.

“We are going to get a taper,” she said. “They need to, we do not need emergency stimulus at this point.”

The economy has begun to explode out of its coma as more widespread vaccinations help the world get closer to normal. At the same time, jumps in prices for raw materials are forcing companies across the economy to raise their own prices for customers, from fast food to used cars.

That’s fueling concerns about inflation. Much of the concern is whether rising inflation will be temporary, as the Fed expects, or more long-lasting. The reality could be more mixed. The rise in commodity prices is likely tied to increases in demand as the economy recovers, but rising wages will likely be longer lasting as employers increase pay in order to attract workers, Link said.

Investors got a bit of disappointing economic news when the Labor Department said the number of Americans who filed for unemployment benefits last week rose slightly. The total of 412,000 workers filing for jobless benefits was worse than economists expected. If it proves to be a trend rather than an aberration, it could push the Fed to hold the line longer on its support for the economy.

Stocks of companies whose profits are most closely tied to the strength of the economy and to interest rates had some of the market’s sharpest losses.

Energy stocks in the S&P 500 fell 3.5% after the price of crude oil sagged.

Banks struggled after the drop in longer-term yields hurt prospects for the profits they can make from lending. Bank of America fell 4.4%, and JPMorgan Chase lost 2.9%.

Raw-material producers were also weak, with miner Newmont down 7% after the price of gold fell 4.7%. Gold tends to struggle when the Federal Reserve is raising interest rates.

On the winning side were big tech-oriented companies, which have dominated the stock market for years as they’ve continued to grow almost regardless of the economy’s strength. Amazon rose 2.2%, Microsoft gained 1.4% and Apple added 1.3%.

ASX 200 expected to rise​

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 40 points or 0.55% higher this morning.

This is despite it being a mixed night on Wall Street, which saw the Dow Jones fall 0.62%, the S&P 500 edge lower 0.04%, and the Nasdaq storm 0.87% higher.

Most stocks fall, tech holds up as markets digest Fed moves

By DAMIAN J. TROISE and STAN CHOE

NEW YORK (AP) — The S&P 500 ended Thursday barely changed after stocks sloshed around in mixed trading, as investors make preparations for a future where the Federal Reserve is no longer doing everything it can to keep interest rates super low.

Markets around the world were mixed but mostly calm after investors in Asia and Europe got their first chance to react to the Federal Reserve’s signaling on Wednesday that it may start raising short-term interest rates by late 2023. The Fed’s chair also said it began discussing the possibility of slowing its bond-buying program. Such support has been a key reason for the stock market’s resurgence to records, with the most recent coming Monday.

The S&P 500 slipped 1.84 points, or less than 0.1%, to 4,221.86 after earlier meandering from a 0.2% gain to a 0.7% loss. Most of the stocks in the index and across Wall Street were lower, but gains for Apple, Microsoft and a few other tech heavyweights helped offset the losses.

The Dow Jones Industrial Average dropped 210.22, or 0.6%, to 33,823.45, while the Nasdaq composite rose 121.67, or 0.9%, to 14,161.35, lifted by the gains for tech and other high-growth stocks.

In the bond market, the yield on the 10-year Treasury note gave back nearly all of its spurt from a day before. It fell back to 1.51% from 1.57% late Wednesday.

The two-year yield, which tends to move more with expectations for Fed actions, was steadier. It rose to 0.22% from 0.21%.

The first action the Fed is likely to take would be a slowdown in its $120 billion of monthly bond purchases, which are helping to keep mortgages cheap, but the Fed’s chair said such a tapering is still likely “a ways away.”

Any easing up on the Fed’s aid for the economy would be a big change for markets, which have feasted on easy conditions after the central bank slashed short-term rates to zero and brought in other emergency programs.

While the economy still needs support, the recovery is proving to be strong enough that it does not need the same emergency measures taken at the beginning of the pandemic, said Stephanie Link, chief investment strategist and portfolio manager at Hightower.

“We are going to get a taper,” she said. “They need to, we do not need emergency stimulus at this point.”

The economy has begun to explode out of its coma as more widespread vaccinations help the world get closer to normal. At the same time, jumps in prices for raw materials are forcing companies across the economy to raise their own prices for customers, from fast food to used cars.

That’s fueling concerns about inflation. Much of the concern is whether rising inflation will be temporary, as the Fed expects, or more long-lasting. The reality could be more mixed. The rise in commodity prices is likely tied to increases in demand as the economy recovers, but rising wages will likely be longer lasting as employers increase pay in order to attract workers, Link said.

Investors got a bit of disappointing economic news when the Labor Department said the number of Americans who filed for unemployment benefits last week rose slightly. The total of 412,000 workers filing for jobless benefits was worse than economists expected. If it proves to be a trend rather than an aberration, it could push the Fed to hold the line longer on its support for the economy.

Stocks of companies whose profits are most closely tied to the strength of the economy and to interest rates had some of the market’s sharpest losses.

Energy stocks in the S&P 500 fell 3.5% after the price of crude oil sagged.

Banks struggled after the drop in longer-term yields hurt prospects for the profits they can make from lending. Bank of America fell 4.4%, and JPMorgan Chase lost 2.9%.

Raw-material producers were also weak, with miner Newmont down 7% after the price of gold fell 4.7%. Gold tends to struggle when the Federal Reserve is raising interest rates.

On the winning side were big tech-oriented companies, which have dominated the stock market for years as they’ve continued to grow almost regardless of the economy’s strength. Amazon rose 2.2%, Microsoft gained 1.4% and Apple added 1.3%.

Homebuilder Lennar rose 3.6% after reporting second-quarter profit and revenue that beat Wall Street forecasts.

In Europe, German and French stocks ticked modestly higher, while the FTSE 100 in London slipped 0.4%. In Asia, Japan’s Nikkei 225 fell 0.9%, and South Korea’s Kospi lost 0.4%, but Hong Kong’s Hang Seng rose 0.4%

 

[bigdog]

US stocks slump; S&P 500 has its worst week since February

NEW YORK (AP) — Stocks sank again on Wall Street Friday, knocking the S&P 500 to its worst weekly loss since February, as more steam comes out of banks and other stocks that soared earlier this year with expectations for the economy and inflation.

The S&P 500 fell 55.41 points, or 1.3%, to 4,166.45 in a widespread slump. It was the worst day for the index in a month as unease grows about the Federal Reserve making plans to eventually offer less help to markets.

The Dow Jones Industrial Average lost 533.37 points, or 1.6%, to 33,290.08, and the Nasdaq composite fell 130.97, or 0.9%, to 14,030.38.

Investors are still recalibrating their moves following the Federal Reserve’s signal this week that it may raise short-term interest rates twice by late 2023, earlier than expected. The Fed also began talks about slowing its bond-buying program that’s helping to keep longer-term rates low. On Friday, St. Louis Federal Reserve President James Bullard said on CNBC his personal prediction was that the first rate increase may come as soon as next year.

It’s an acknowledgment that a rebounding economy with near-record prices for homes and stocks may not need super low rates much longer. A recent burst of inflation may also be upping the pressure. But any pullback in Fed support would be a big change for markets, which have been feasting on ultra-low rates for more than a year. It marked a “U-turn on Easy Street,” as strategists at BofA Global Research described it.

That’s hurt stocks of banks, oil producers and other companies whose profits are closely tied to the strength of the economy in particular. On the other side, stocks of companies able to grow almost regardless of the economy’s fortunes have held up better.

The Dow Jones Industrial Average, which is full of companies whose profits move more with the economy, lost 3.5% this past week. That’s its worst since October. The Nasdaq composite, which has more high-growth tech stocks, dipped a much more modest 0.3%.

Of course, all the major U.S. stock indexes remain relatively close to their record highs, as the economy continues to leap out of the recession caused by the pandemic. The S&P 500 is only about 2% below its all-time high set on Monday, and the Dow is within 5% of its record set last month.

A measure of nervousness in the stock market, known as the VIX, rose Friday but is only back to where it was about a month ago.

Banks are taking a hit from the shrinking gap between shorter- and longer-term interest rates, which helped send financial stocks in the S&P 500 down 2.4% on Friday. That was one of the sharpest losses among the 11 sectors that make up the index.

Among the few winners in the market Friday was software maker Adobe. It rose 2.6% after reporting stronger results for the latest quarter than analysts expected and gave an encouraging forecast for the current quarter.

Gun maker Smith & Wesson jumped 17.2% after raising its quarterly dividend and reporting stronger results for the latest quarter than expected.

https://apnews.com/article/financia...mic-business-7bcdaaae598325b0617a00e6df9fb109

US stocks slump; S&P 500 has its worst week since February

By DAMIAN J. TROISE and STAN CHOE

NEW YORK (AP) — Stocks sank again on Wall Street Friday, knocking the S&P 500 to its worst weekly loss since February, as more steam comes out of banks and other stocks that soared earlier this year with expectations for the economy and inflation.

The S&P 500 fell 55.41 points, or 1.3%, to 4,166.45 in a widespread slump. It was the worst day for the index in a month as unease grows about the Federal Reserve making plans to eventually offer less help to markets.

The Dow Jones Industrial Average lost 533.37 points, or 1.6%, to 33,290.08, and the Nasdaq composite fell 130.97, or 0.9%, to 14,030.38.

Investors are still recalibrating their moves following the Federal Reserve’s signal this week that it may raise short-term interest rates twice by late 2023, earlier than expected. The Fed also began talks about slowing its bond-buying program that’s helping to keep longer-term rates low. On Friday, St. Louis Federal Reserve President James Bullard said on CNBC his personal prediction was that the first rate increase may come as soon as next year.

It’s an acknowledgment that a rebounding economy with near-record prices for homes and stocks may not need super low rates much longer. A recent burst of inflation may also be upping the pressure. But any pullback in Fed support would be a big change for markets, which have been feasting on ultra-low rates for more than a year. It marked a “U-turn on Easy Street,” as strategists at BofA Global Research described it.

That’s hurt stocks of banks, oil producers and other companies whose profits are closely tied to the strength of the economy in particular. On the other side, stocks of companies able to grow almost regardless of the economy’s fortunes have held up better.

The Dow Jones Industrial Average, which is full of companies whose profits move more with the economy, lost 3.5% this past week. That’s its worst since October. The Nasdaq composite, which has more high-growth tech stocks, dipped a much more modest 0.3%.

Of course, all the major U.S. stock indexes remain relatively close to their record highs, as the economy continues to leap out of the recession caused by the pandemic. The S&P 500 is only about 2% below its all-time high set on Monday, and the Dow is within 5% of its record set last month.

A measure of nervousness in the stock market, known as the VIX, rose Friday but is only back to where it was about a month ago.

Banks are taking a hit from the shrinking gap between shorter- and longer-term interest rates, which helped send financial stocks in the S&P 500 down 2.4% on Friday. That was one of the sharpest losses among the 11 sectors that make up the index.

When the gap is wide, the industry can make big profits from borrowing cash in short-term markets and lending it out at longer-term rates. But short-term yields jumped sharply this week after the Fed’s indication that it may be moving up the timeline for rate increases. The two-year Treasury yield rose to 0.25% Friday from 0.23% a day before and from 0.16% a week before.

The 10-year Treasury yield, which is less directly affected by Fed moves, ended the week close to where it started, though there were some jagged moves up and down in the interim. It sat at 1.43% Friday afternoon, down from 1.51% late Thursday but not far off from its 1.46% level a week earlier.

The rate pressure helped send JPMorgan Chase down 2.5%, and it was one of the heaviest weights on the S&P 500. Bank of America dropped 2.6%.

The quickly recovering economy and some supply shortages have helped send prices soaring across the economy recently, from lumber to airline tickets to used cars. The Fed has said it expects high inflation to be only “transitory,” and prices for lumber at least have already started to moderate a bit. Much of Wall Street also says inflation looks to be only temporary, but part of the Fed’s mission is to keep prices under control.

“You just don’t have the firms able to build capacity to meet demand,” said Ken Johnson, investment strategy analyst at Wells Fargo Investment Institute. “Investors are nervous about that.”

The first action the Fed is likely to take would be a slowdown in its $120 billion of monthly bond purchases, which are helping to keep mortgages cheap, but the Fed’s chair said such a tapering is still likely a ways away.

Besides keeping inflation steady, the Fed’s other main job is to keep the job market healthy. Employment has been improving, but growth has slowed in recent months.

“That gives investors some reassurance that the Fed isn’t going to move on rates when the economy, from a labor market perspective, isn’t back to where it was,” Johnson said.

Among the few winners in the market Friday was software maker Adobe. It rose 2.6% after reporting stronger results for the latest quarter than analysts expected and gave an encouraging forecast for the current quarter.

Gun maker Smith & Wesson jumped 17.2% after raising its quarterly dividend and reporting stronger results for the latest quarter than expected.

 

[bigdog]

ASX 200 expected to sink​

The Australian share market is expected to start the week deep in the red this morning. According to the latest SPI futures, the ASX 200 is expected to open the day 111 points or 1.5% lower.

This follows a very poor end to the week on Wall Street, which saw the Dow Jones drop 1.58%, the S&P 500 fall 1.31%, and the Nasdaq tumble 0.92% lower.

 

[bigdog]

Wall Street snaps back following worst week since February

NEW YORK (AP) — Stocks rebounded on Wall Street Monday, clawing back most of their sharp loss from last week, as the initial jolt passes from the Federal Reserve’s reminder that it will eventually offer less help for markets.

The S&P 500 snapped 58.34 points higher, or 1.4%, to 4,224.79 and recovered nearly three-quarters of its worst weekly loss since February. Oil producers, banks and other companies that were hit particularly hard last week led the way.

The Dow Jones Industrial Average gained 586.89, or 1.8%, to 33,876.97, and the Nasdaq composite rose 111.10, or 0.8%, to 14,141.48.

Investors are still figuring all the ramifications of the Fed’s latest meeting on interest-rate policy, where it indicated it may start raising short-term rates by late 2023. That’s earlier than previously thought. The Fed also began talks about slowing programs meant to keep longer-term rates low, an acknowledgment of the strengthening economy and threat of higher inflation.

The market’s immediate reaction to last week’s Fed news was to send stocks lower and interest rates higher. Any shift by the Fed would be a big deal, after investors have feasted on easy conditions with ultra-low rates for more than a year. Higher rates would make stock prices, which have been climbing faster than corporate profits, look even more expensive than they do already.

But it’s not like the Fed said it will jack rates higher off their record low of nearly zero anytime soon.

“If markets are worried about a march back to more normal monetary and fiscal policy as the economy recovers, it will be a very long march,” Barings chief global strategist Christopher Smart said in a note. In the meantime, support from both the Federal Reserve and the U.S. government should continue to help stock prices, even if they do look expensive compared with history, he said.

Companies whose profits are the most closely tied to the economy’s strength and inflation were among the market’s strongest on Monday.

Hess, Marathon Oil and Devon Energy all rose at least 6.9% as energy stocks rallied with the price of oil.

Banks were also strong, with Bank of America up 2.5% and Wells Fargo climbing 3.7%.

High-growth companies able to flourish almost regardless of the economy lagged behind, meanwhile. It’s a reversal from last week’s trend, when investors rattled by the Fed piled back into the biggest winners of the pandemic.

Amazon slipped 0.9% Monday, for example, and the lagging performance for tech meant the Nasdaq was trailing other indexes.

ASX 200 expected to rebound​

The Australian share market looks set to rebound strongly from yesterday’s sell off thanks to a very positive start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 96 points or 1.35% higher this morning.

Wall Street had its best day since March, with the Dow Jones rising 1.76%, the S&P 500 jumping 1.4%, and the Nasdaq pushing 0.79% higher.

https://apnews.com/article/financia...mic-business-8a9e11c9fbf75873e38dc82ad9fc1e6c

Wall Street snaps back following worst week since February

By DAMIAN J. TROISE and STAN CHOE

NEW YORK (AP) — Stocks rebounded on Wall Street Monday, clawing back most of their sharp loss from last week, as the initial jolt passes from the Federal Reserve’s reminder that it will eventually offer less help for markets.

The S&P 500 snapped 58.34 points higher, or 1.4%, to 4,224.79 and recovered nearly three-quarters of its worst weekly loss since February. Oil producers, banks and other companies that were hit particularly hard last week led the way.

The Dow Jones Industrial Average gained 586.89, or 1.8%, to 33,876.97, and the Nasdaq composite rose 111.10, or 0.8%, to 14,141.48.

Investors are still figuring all the ramifications of the Fed’s latest meeting on interest-rate policy, where it indicated it may start raising short-term rates by late 2023. That’s earlier than previously thought. The Fed also began talks about slowing programs meant to keep longer-term rates low, an acknowledgment of the strengthening economy and threat of higher inflation.

The market’s immediate reaction to last week’s Fed news was to send stocks lower and interest rates higher. Any shift by the Fed would be a big deal, after investors have feasted on easy conditions with ultra-low rates for more than a year. Higher rates would make stock prices, which have been climbing faster than corporate profits, look even more expensive than they do already.

But it’s not like the Fed said it will jack rates higher off their record low of nearly zero anytime soon.

“If markets are worried about a march back to more normal monetary and fiscal policy as the economy recovers, it will be a very long march,” Barings chief global strategist Christopher Smart said in a note. In the meantime, support from both the Federal Reserve and the U.S. government should continue to help stock prices, even if they do look expensive compared with history, he said.

Companies whose profits are the most closely tied to the economy’s strength and inflation were among the market’s strongest on Monday.

Hess, Marathon Oil and Devon Energy all rose at least 6.9% as energy stocks rallied with the price of oil.

Banks were also strong, with Bank of America up 2.5% and Wells Fargo climbing 3.7%.

High-growth companies able to flourish almost regardless of the economy lagged behind, meanwhile. It’s a reversal from last week’s trend, when investors rattled by the Fed piled back into the biggest winners of the pandemic.

Amazon slipped 0.9% Monday, for example, and the lagging performance for tech meant the Nasdaq was trailing other indexes.

Shorter-term yields slipped, and longer-term yields rose in another reversal from last week’s initial reaction to the Fed news.

The two-year Treasury yield dipped to 0.25% from 0.26% late Friday, while the 10-year yield rose to 1.49% from 1.45%.

More bumps may be ahead for markets, which had been mostly quiet for weeks before the Fed’s announcement. Fed Chair Jerome Powell will speak before a House subcommittee on Tuesday about the Fed’s response to the pandemic.

On Friday, investors will see what the Federal Reserve’s preferred gauge for inflation says about May. Prices have been bursting higher across the economy, from airfares to restaurant meals, but the Fed has so far said it expects the big increases to be only temporary. If it proves to be longer lasting, the Fed may have to get much more aggressive about raising rates.

Corporate deals helped lift shares of some companies well beyond the market’s gains. Industrial products maker Raven Industries jumped 49.3% on news it is being bought by CNH Industrial. Engineered products company Lydall surged 85.4% on news of its sale to Clearlake Capital-backed Unifrax.

Wall Street’s strong gains followed up on a tumultuous day of trading that preceded it in Asia.

Japan’s Nikkei 225 sank 3.3%, while Hong Kong’s Hang Seng fell 1.1% in the first trading following Wall Street’s tumble on Friday. South Korea’s Kospi lost 0.8%, but markets calmed as trading headed westward.

Across Europe, stock indexes made mostly modest gains. Germany’s DAX returned 1%.