NYSE Dow Jones finished today at:

[bigdog]

Wall Street rises, pushing S&P 500 back near record high

Stocks rose on Wall Street Tuesday, nudging the S&P 500 toward its record high, as the head of the Federal Reserve said again that inflation looks to be only a temporary problem for the economy and markets.

The S&P 500 climbed 21.65, or 0.5%, to 4,246.44 after Fed Chair Jerome Powell’s comments helped further calm markets, which were jolted by last week’s announcement that the Fed has begun planning to eventually offer less support to the economy. The S&P 500 got back within 0.2% of its all-time high set two Mondays ago, after dropping as much as 2.1%.

The Dow Jones Industrial Average gained 68.61 points, or 0.2%, to 33,945.58, and the Nasdaq composite rose 111.79, or 0.8%, to 14,253.27.

Indexes started the day off mixed, but they rose more convincingly as Powell told a Congressional subcommittee that the burst of inflation hitting the economy is mostly confined to areas hemmed in by shortages of supplies. That’s why he expects inflation, which hit 5% last month, to subside as the economy gets further into its reawakening.

He pointed in particular to rising prices for used cars, airfares and other things where a newfound flood of dollars is chasing after a limited supply of goods and services. He admitted that price gains in those areas have been larger than the Fed initially expected, but he remained resolute in calling them only temporary.

“The incoming data are very much consistent with the view that these are factors that will wane over time,” he said.

If the Fed is wrong, and if inflation does end up being a longer-lasting problem, it would force the central bank to get more aggressive about raising interest rates higher and faster off their record lows

Markets are just getting used to the idea of the Fed making any moves at all. For more than a year, they’ve enjoyed investing on easy-mode as super-low rates propped up prices. Last week, though, the Fed indicated it may begin raising short-term rates by late 2023, earlier than expected. It also discussed easing up on programs meant to keep longer-term rates low.

Trading is likely to get bumpier through the summer as economic reports may give sometimes conflicting signals about inflation and other key data amid a recovering economy, said Katie Nixon, chief investment officer at Northern Trust Wealth Management.

“What investors are going to have to do is just buckle up,” she said. “The data is going to be very noisy; we could get some numbers that create some anxiety.”

The key, she said, is to stay calm and not overreact to any one signal or piece of data.

Markets are sitting close to their records, but that’s masked plenty of churning happening underneath the surface since the Fed’s announcement last week.

The market’s initial move was to send stocks lower and bond yields higher. But the reaction has diffused as investors focus more on the Fed’s saying that it still plans to keep up its support for markets for a while.

ASX 200 expected to edge lower​

The Australian share market looks set to edge lower on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 5 points or 0.1% lower this morning.

This is despite it being a positive night of trade on Wall Street, which saw the Dow Jones rise 0.2%, the S&P 500 climb 0.51%, and the Nasdaq storm 0.79% higher.

https://apnews.com/article/financia...mic-business-5ee864047dc409eeede5689b1b0becfe

Wall Street rises, pushing S&P 500 back near record high

By DAMIAN J. TROISE and STAN CHOE

NEW YORK (AP) — Stocks rose on Wall Street Tuesday, nudging the S&P 500 toward its record high, as the head of the Federal Reserve said again that inflation looks to be only a temporary problem for the economy and markets.

The S&P 500 climbed 21.65, or 0.5%, to 4,246.44 after Fed Chair Jerome Powell’s comments helped further calm markets, which were jolted by last week’s announcement that the Fed has begun planning to eventually offer less support to the economy. The S&P 500 got back within 0.2% of its all-time high set two Mondays ago, after dropping as much as 2.1%.

The Dow Jones Industrial Average gained 68.61 points, or 0.2%, to 33,945.58, and the Nasdaq composite rose 111.79, or 0.8%, to 14,253.27.

Indexes started the day off mixed, but they rose more convincingly as Powell told a Congressional subcommittee that the burst of inflation hitting the economy is mostly confined to areas hemmed in by shortages of supplies. That’s why he expects inflation, which hit 5% last month, to subside as the economy gets further into its reawakening.

He pointed in particular to rising prices for used cars, airfares and other things where a newfound flood of dollars is chasing after a limited supply of goods and services. He admitted that price gains in those areas have been larger than the Fed initially expected, but he remained resolute in calling them only temporary.

“The incoming data are very much consistent with the view that these are factors that will wane over time,” he said.

If the Fed is wrong, and if inflation does end up being a longer-lasting problem, it would force the central bank to get more aggressive about raising interest rates higher and faster off their record lows

Markets are just getting used to the idea of the Fed making any moves at all. For more than a year, they’ve enjoyed investing on easy-mode as super-low rates propped up prices. Last week, though, the Fed indicated it may begin raising short-term rates by late 2023, earlier than expected. It also discussed easing up on programs meant to keep longer-term rates low.

Trading is likely to get bumpier through the summer as economic reports may give sometimes conflicting signals about inflation and other key data amid a recovering economy, said Katie Nixon, chief investment officer at Northern Trust Wealth Management.

“What investors are going to have to do is just buckle up,” she said. “The data is going to be very noisy; we could get some numbers that create some anxiety.”

The key, she said, is to stay calm and not overreact to any one signal or piece of data.

Markets are sitting close to their records, but that’s masked plenty of churning happening underneath the surface since the Fed’s announcement last week.

The market’s initial move was to send stocks lower and bond yields higher. But the reaction has diffused as investors focus more on the Fed’s saying that it still plans to keep up its support for markets for a while.

Longer-term Treasury yields have fallen back after their initial spike, for example. The 10-year yield dipped to 1.46% from 1.48% late Monday.

Shorter-term yields, which move more on expectations for Fed moves on the federal funds rate, have also regressed a bit. The two-year Treasury yield fell back to 0.22% from 0.27% late Monday, but it’s still well above its 0.16% level from before the Fed’s meeting.

In the stock market, companies whose profits most need a strengthening economy to flourish have swung out of and back into favor. They’ve been trading places with Big Tech stocks and other winners of the pandemic, which have seemed able to grow almost regardless of the economy.

GameStop rose 10% after the company said it had raised $1.1 billion after selling 5 million new shares to investors. The company captivated Wall Street earlier this year, after a band of smaller-pocketed investors piled into it together and sent its price way beyond what professional analysts said was reasonable.

Retailers and tech companies were also particularly strong. Gains for Apple, Amazon and Microsoft, which all rose at least 1.1%, were the biggest reasons for the S&P 500′s climb.

In cryptocurrencies, prices continued to swing sharply after Chinese banks said they would step up enforcement on a government ban.

Bitcoin was trading at a little less than $33,000, according to Coindesk. Earlier in the day, it fell below $30,000, about where it started the year, after more than halving from its high of $64,829.14 in April.

 

[bigdog]

Stocks end listless day on Wall Street mixed as calm returns

A listless day on Wall Street ended with indexes mixed on Wednesday, as nervousness continues to wash out of the market following last week’s jolt by the Federal Reserve.

The S&P 500 slipped 4.60 points, or 0.1%, to 4,241.84 after earlier meandering between very modest gains and losses. It’s 0.3% below its record high set a week and a half ago.

The Dow Jones Industrial Average fell 71.34, or 0.2%, to 33,874.24, while the Nasdaq composite added to its record set a day before. It inched up by 18.46, or 0.1%, to 14,271.73.

The majority of stocks in the S&P 500 fell, but gains for financial companies and others that do best when the economy is healthy helped limit the losses.

Markets have calmed notably since the Federal Reserve surprised investors last week by saying it could start raising short-term interest rates by late 2023, earlier than expected.

The super-low rates the Fed has engineered to carry the economy through the pandemic have made investing easy for more than a year. They’ve propped up prices across markets, and any change would be a big deal. That’s why the Fed’s announcement triggered an immediate drop for stocks and rise in Treasury yields.

But since then, investors have focused more on how it may be still be years before the first rate hike hits, particularly as Fed officials continue to say they see the high inflation sweeping the economy being only a temporary problem.

Before the Fed raises rates for the first time since 2018, it will likely first have to check off several items, investment giant Capital Group said in a recent report.

First, the Fed will announce that it will reduce the bond purchases it’s making to keep longer-term interest rates low. Then it will actually begin tapering, before ending tapering and then signaling that a rate hike is coming.

“That schedule will take time, and Fed officials have made it clear that they will remain patient,” said Capital Group, which runs American Funds, in its midyear outlook.

In the meantime, the economy continues to roar higher, and corporate profits are soaring.

ASX 200 expected to fall​

The Australian share market looks set to fall again on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 26 points or 0.35% lower this morning.

This follows a subdued night of trade on Wall Street, which saw the Dow Jones fall 0.21%, the S&P 500 drop 0.11%, and the Nasdaq rise 0.13%.

Asian shares mostly higher after listless session on Wall St

Shares are mostly higher in Asia after a listless day of trading on Wall Street as the recent bout of nerves over Federal Reserve policy fades.

apnews.com

Stocks end listless day on Wall Street mixed as calm returns

By DAMIAN J. TROISE and STAN CHOE

NEW YORK (AP) — A listless day on Wall Street ended with indexes mixed on Wednesday, as nervousness continues to wash out of the market following last week’s jolt by the Federal Reserve.

The S&P 500 slipped 4.60 points, or 0.1%, to 4,241.84 after earlier meandering between very modest gains and losses. It’s 0.3% below its record high set a week and a half ago.

The Dow Jones Industrial Average fell 71.34, or 0.2%, to 33,874.24, while the Nasdaq composite added to its record set a day before. It inched up by 18.46, or 0.1%, to 14,271.73.

The majority of stocks in the S&P 500 fell, but gains for financial companies and others that do best when the economy is healthy helped limit the losses.

Markets have calmed notably since the Federal Reserve surprised investors last week by saying it could start raising short-term interest rates by late 2023, earlier than expected.

The super-low rates the Fed has engineered to carry the economy through the pandemic have made investing easy for more than a year. They’ve propped up prices across markets, and any change would be a big deal. That’s why the Fed’s announcement triggered an immediate drop for stocks and rise in Treasury yields.

But since then, investors have focused more on how it may be still be years before the first rate hike hits, particularly as Fed officials continue to say they see the high inflation sweeping the economy being only a temporary problem.

Before the Fed raises rates for the first time since 2018, it will likely first have to check off several items, investment giant Capital Group said in a recent report.

First, the Fed will announce that it will reduce the bond purchases it’s making to keep longer-term interest rates low. Then it will actually begin tapering, before ending tapering and then signaling that a rate hike is coming.

“That schedule will take time, and Fed officials have made it clear that they will remain patient,” said Capital Group, which runs American Funds, in its midyear outlook.

In the meantime, the economy continues to roar higher, and corporate profits are soaring.

One measure of nervousness among stock investors in the market, known as the VIX, fell about 2%. Earlier in the day, it came close to its lowest level since the pandemic sell-off began in February 2020.

Of course, if the Fed is wrong and higher inflation is longer lasting, the central bank will then have to get more aggressive about raising rates.

The latest data on inflation will come on Friday with the release of the Federal Reserve’s preferred gauge. It will cover May, which the consumer price index has already said saw year-over-year inflation of 5%.

Bond yields were holding relatively steady following a mixed set of economic data. The yield on the 10-year Treasury inched up to 1.48% from 1.47% late Tuesday. The two-year yield held at 0.25%.

Preliminary readings on the economy in June from IHS Markit showed manufacturing is growing at a stronger pace than economists expected, but growth for services industries fell short of forecasts.

Sales of new homes in May also failed to meet economists’ forecasts. It was the second straight monthly decline, as surging prices for homes slow activity. Besides a shortage of homes on the market, inflation has also been driving home prices higher because of increased costs for lumber and other building materials.

European markets were mostly lower. The DAX in Germany lost 1.2%, and the CAC 40 in France fell 0.9%. The FTSE 100 in London fell 0.2%.

In Asia, Japan’s Nikkei 225 was nearly unchanged while other markets were stronger. Hong Kong’s Hang Seng rose 1.8%, and stocks in Seoul gained 0.4%.

 

[bigdog]

Stocks add to weekly gains, helped by infrastructure deal

Stocks closed higher on Wall Street Thursday as traders were encouraged to see a bipartisan deal on infrastructure spending as well as some positive reports on the economy.

The S&P 500 marked another record high, beating the peak it set early last week. Stocks added to their gains in the afternoon after President Joe Biden announced the infrastructure deal, which is sure to benefit companies in the construction industry.

Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, said the proposed agreement is favorable for industrials, financials and energy stocks, although “the general re-opening of the economy and renewed, post-Covid-19 economic growth is the most likely driver” of the market going forward.

The S&P 500 index rose 24.65 points, or 0.6%, to 4,266.49. The Dow Jones Industrial Average rose 322.58 points, or 1%, to 34,196.82. The Nasdaq added 97.98, or 0.7%, to 14,369.71.

Small-company stocks did much better than the rest of the market. The Russell 2000 index climbed 30.15 points, or 1.3%, to 2,333.62.

Major indexes rose further after President Biden announced the infrastructure deal. The plan, which will cost $973 billion over five years, is the culmination of months of talks on both sides of the aisle. Biden’s larger spending plan is still possible later this year.

Biden announced the infrastructure deal Thursday afternoon at the White House. Analysts have said that any effort to rebuild the nation’s roads, bridges and other infrastructure could send the stocks of companies that make machinery and materials higher. Caterpillar rose 2.6% and Vulcan Materials gained 3.3%.

Markets have calmed since the Federal Reserve surprised investors last week by saying it could start raising short-term interest rates by late 2023, earlier than expected, if recent high inflation persists.

The super-low rates the Fed engineered to carry the economy through the pandemic have propped up prices across markets, and any change would be a big deal, so the Fed’s announcement triggered selling of stocks and a rise in Treasury yields last week. However that selling reversed this week. The three major indexes are all up more than 2% this week and are once again near records.

Investors had little negative reaction to a report that showed that 411,000 Americans filed for unemployment benefits last week, down 7,000 from the week before. That was a much more modest decline than investors had expected, and the second week in a row where unemployment benefits claims stalled after declining steadily for months.

ASX 200 expected to rebound​

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 44 points or 0.6% higher this morning.

This follows a strong night on Wall Street which saw the Dow Jones rise 0.95%, the S&P 500 climb 0.58%, and the Nasdaq push 0.69% higher

Asian stocks rise after US rally on infrastructure deal

Asian shares are rising, buoyed by the rally on Wall Street that came after President Joe Biden announced a bipartisan deal on infrastructure spending.

apnews.com

Stocks add to weekly gains, helped by infrastructure deal

The Associated Press

Stocks closed higher on Wall Street Thursday as traders were encouraged to see a bipartisan deal on infrastructure spending as well as some positive reports on the economy.

The S&P 500 marked another record high, beating the peak it set early last week. Stocks added to their gains in the afternoon after President Joe Biden announced the infrastructure deal, which is sure to benefit companies in the construction industry.

Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, said the proposed agreement is favorable for industrials, financials and energy stocks, although “the general re-opening of the economy and renewed, post-Covid-19 economic growth is the most likely driver” of the market going forward.

The S&P 500 index rose 24.65 points, or 0.6%, to 4,266.49. The Dow Jones Industrial Average rose 322.58 points, or 1%, to 34,196.82. The Nasdaq added 97.98, or 0.7%, to 14,369.71.

Small-company stocks did much better than the rest of the market. The Russell 2000 index climbed 30.15 points, or 1.3%, to 2,333.62.

Major indexes rose further after President Biden announced the infrastructure deal. The plan, which will cost $973 billion over five years, is the culmination of months of talks on both sides of the aisle. Biden’s larger spending plan is still possible later this year.

Biden announced the infrastructure deal Thursday afternoon at the White House. Analysts have said that any effort to rebuild the nation’s roads, bridges and other infrastructure could send the stocks of companies that make machinery and materials higher. Caterpillar rose 2.6% and Vulcan Materials gained 3.3%.

Markets have calmed since the Federal Reserve surprised investors last week by saying it could start raising short-term interest rates by late 2023, earlier than expected, if recent high inflation persists.

The super-low rates the Fed engineered to carry the economy through the pandemic have propped up prices across markets, and any change would be a big deal, so the Fed’s announcement triggered selling of stocks and a rise in Treasury yields last week. However that selling reversed this week. The three major indexes are all up more than 2% this week and are once again near records.

Investors had little negative reaction to a report that showed that 411,000 Americans filed for unemployment benefits last week, down 7,000 from the week before. That was a much more modest decline than investors had expected, and the second week in a row where unemployment benefits claims stalled after declining steadily for months.

Meanwhile, orders to U.S. factories for big-ticket manufactured goods rose for the 12th time in the last 13 months in May, pulled up by surging demand for civilian aircraft. The Commerce Department said Thursday that orders for durable goods — meant to last at least three years — climbed 2.3% in May, reversing a 0.8% drop in April and coming despite a backlogged supply chain and a shortage of workers.

The yield on the 10-year Treasury note edged up to 1.49% from 1.48%, late Wednesday.

Rite Aid plunged 14.5% after the drug store chain said it expects to report a loss for the year, due to pressure on its pharmacy benefits services and lower-than-expected sales.

Eli Lilly rose 7.3% after the Food and Drug Administration gave expedited approval to the drugmaker’s experimental Alzheimer’s treatment.

BuzzFeed announced it would go public with an implied value of $1.5 billion through a merger with a special purpose acquisition company. The media company will trade under the ticker BZFD but has not chosen a stock exchange yet.

 

[bigdog]

Stock close higher, S&P 500 has best week since February

Stocks ended mostly higher Friday, helping the S&P 500 index close out its best week since February. It’s a notable turnaround for the market, which only the previous week had its worst week since February on concerns about inflation.

The S&P 500 index closed up 14.21 points, or 0.3%, to 4,280.70. The Dow Jones Industrial Average rose 237.02 points, or 0.7%, to 34,433.84 and the Nasdaq Composite lost 9.32 points, or 0.1%, to 14,360.39. With Friday’s gains, the S&P 500 index ended the week up 2.7%, its best five-day period since Feb. 5 .

The Dow’s gains were driven by a surge in Nike, which reported blowout earnings late Thursday and gave investors a strong outlook for the year. Nike rose 15.5%.

Markets have calmed since the Federal Reserve surprised investors last week by saying it could start raising short-term interest rates by late 2023, earlier than expected, if recent high inflation persists. The calming of investors’ nerves has largely helped the market undo the damage from the previous week.

Investors got another data point on inflation on Friday. The Commerce Department said inflation tied to a gauge of consumer spending that is closely watched by the Federal Reserve increased 0.4% in May and is up 3.9% over the past 12 months, well above the Fed’s 2% target for annual price increases.

“Today’s inflation data should calm some nerves about runaway inflation. Remember, the PCE is the Fed’s favorite measure of inflation, and it very well could be near a peak in inflation,” Ryan Detrick, chief market strategist for LPL Financial, wrote in an email to investors.

Investors are also embracing a bipartisan deal for infrastructure spending. President Biden and a group of Democrat and GOP senators were able to reach a near $1 trillion deal to build out numerous parts of the country’s infrastructure, including roads, rails and ports. The plan, costing $973 billion over five years, is the culmination of months of talks, and a larger spending plan from President Biden is still possible later this year.

FedEx fell 3.6% after the company announced it would increase its spending to reduce delivery delays across its network.

Virgin Galactic jumped 38.9% after the company got approval from the Federal Aviation Administration to start its flights into space, the final approval the company to begin commercial spaceflight.

Stock close higher, S&P 500 has best week since February

Stocks ended mostly higher Friday, helping the S&P 500 index close out its best week since February.

apnews.com

Stock close higher, S&P 500 has best week since February

The Associated Press

Stocks ended mostly higher Friday, helping the S&P 500 index close out its best week since February. It’s a notable turnaround for the market, which only the previous week had its worst week since February on concerns about inflation.

The S&P 500 index closed up 14.21 points, or 0.3%, to 4,280.70. The Dow Jones Industrial Average rose 237.02 points, or 0.7%, to 34,433.84 and the Nasdaq Composite lost 9.32 points, or 0.1%, to 14,360.39. With Friday’s gains, the S&P 500 index ended the week up 2.7%, its best five-day period since Feb. 5 .

The Dow’s gains were driven by a surge in Nike, which reported blowout earnings late Thursday and gave investors a strong outlook for the year. Nike rose 15.5%.

Markets have calmed since the Federal Reserve surprised investors last week by saying it could start raising short-term interest rates by late 2023, earlier than expected, if recent high inflation persists. The calming of investors’ nerves has largely helped the market undo the damage from the previous week.

Investors got another data point on inflation on Friday. The Commerce Department said inflation tied to a gauge of consumer spending that is closely watched by the Federal Reserve increased 0.4% in May and is up 3.9% over the past 12 months, well above the Fed’s 2% target for annual price increases.

“Today’s inflation data should calm some nerves about runaway inflation. Remember, the PCE is the Fed’s favorite measure of inflation, and it very well could be near a peak in inflation,” Ryan Detrick, chief market strategist for LPL Financial, wrote in an email to investors.

Investors are also embracing a bipartisan deal for infrastructure spending. President Biden and a group of Democrat and GOP senators were able to reach a near $1 trillion deal to build out numerous parts of the country’s infrastructure, including roads, rails and ports. The plan, costing $973 billion over five years, is the culmination of months of talks, and a larger spending plan from President Biden is still possible later this year.

FedEx fell 3.6% after the company announced it would increase its spending to reduce delivery delays across its network.

Virgin Galactic jumped 38.9% after the company got approval from the Federal Aviation Administration to start its flights into space, the final approval the company to begin commercial spaceflight.

 

[bigdog]

ASX 200 poised to edge higher​

The Australian share market is expected to start the week slightly higher. According to the latest SPI futures, the ASX 200 is expected to open the day 5 points or 0.1% higher.

This follows a reasonably positive end to the week on Wall Street, which saw the Dow Jones rise 0.7%, the S&P 500 climb 0.3%, and the Nasdaq edge slightly lower.

 

[bigdog]

Tech gains nudge S&P 500, Nasdaq further into record heights

Strength for tech stocks nudged U.S. indexes a bit further into record heights Monday, more than making up for losses across much of the rest of Wall Street.

The S&P 500 rose 9.91 points, or 0.2%, to 4,290.61 after drifting between small gains and losses for much of the day. It added to its all-time high set Friday as optimism builds about the strengthening economy and expectations that the Federal Reserve will keep interest rates low for a while longer.

Healthy gains for Nvidia, Facebook and other stocks that have been winners of the increasingly online world helped the Nasdaq composite also tick further into record heights. It rose 140.12, or 1%, to 14,500.51. But the majority of stocks in the S&P 500 and across Wall Street weakened, and the Dow Jones Industrial Average dropped 150.57, or 0.4%, to 34,283.27.

Trading was relatively quiet around the world, with European stocks modestly lower and several Asian indexes nearly unchanged.

The action was more notable in the bond market, where the yield on the 10-year Treasury slumped to 1.47% from 1.53% late Friday. It was as high as 1.70% last month, but it’s been receding as worries about high inflation have calmed a bit.

The drop in long-term rates can crimp the profits banks make from lending money, and financial stocks were some of the biggest drags on the S&P 500. Wells Fargo slipped 1.3%, and Capital One Financial fell 2.5%.

But falling Treasury yields can also make the high price tags for high-growth stocks easier to justify, and gains for tech stocks were the main reason for the S&P 500′s strength.

Apple rose 1.3%, Microsoft gained 1.4% and Intel climbed 2.8%. Nvidia jumped 5% after The Sunday Times in Britain reported several big customers of U.K. semiconductor company Arm came out in support of its proposed takeover by Nvidia.

Facebook climbed 4.2% after a federal judge dismissed antitrust lawsuits brought against it by the Federal Trade Commission and a group of state attorneys general.

Still, worries remain on Wall Street, and a measure of nervousness in the stock market ticked up by about 1%.

Some measures of the economy may have already hit their peaks after roaring out of the recession caused by the pandemic. Stock prices look expensive to critics after rising much faster than corporate profits. And inflation remains a worry, even if more investors have come around to the Federal Reserve’s view that it will be only a temporary problem.

ASX 200 expected to fall​

The Australian share market looks set to edge lower this morning. According to the latest SPI futures, the ASX 200 is expected to open the day 14 points or 0.2% lower.

This follows a mixed night of trade on Wall Street, which saw the Dow Jones fall 0.44%, the S&P 500 rise 0.23%, and the Nasdaq storm 0.98% higher.

Asian stocks fall for 2nd day after new Wall St record

Asian stock markets have declined for a second day after gains for U.S. tech stocks pushed Wall Street to a new high and the World Bank raised its forecast for China's economic growth.

apnews.com

Tech gains nudge S&P 500, Nasdaq further into record heights

By DAMIAN J. TROISE and STAN CHOE

NEW YORK (AP) — Strength for tech stocks nudged U.S. indexes a bit further into record heights Monday, more than making up for losses across much of the rest of Wall Street.

The S&P 500 rose 9.91 points, or 0.2%, to 4,290.61 after drifting between small gains and losses for much of the day. It added to its all-time high set Friday as optimism builds about the strengthening economy and expectations that the Federal Reserve will keep interest rates low for a while longer.

Healthy gains for Nvidia, Facebook and other stocks that have been winners of the increasingly online world helped the Nasdaq composite also tick further into record heights. It rose 140.12, or 1%, to 14,500.51. But the majority of stocks in the S&P 500 and across Wall Street weakened, and the Dow Jones Industrial Average dropped 150.57, or 0.4%, to 34,283.27.

Trading was relatively quiet around the world, with European stocks modestly lower and several Asian indexes nearly unchanged.

The action was more notable in the bond market, where the yield on the 10-year Treasury slumped to 1.47% from 1.53% late Friday. It was as high as 1.70% last month, but it’s been receding as worries about high inflation have calmed a bit.

The drop in long-term rates can crimp the profits banks make from lending money, and financial stocks were some of the biggest drags on the S&P 500. Wells Fargo slipped 1.3%, and Capital One Financial fell 2.5%.

But falling Treasury yields can also make the high price tags for high-growth stocks easier to justify, and gains for tech stocks were the main reason for the S&P 500′s strength.

Apple rose 1.3%, Microsoft gained 1.4% and Intel climbed 2.8%. Nvidia jumped 5% after The Sunday Times in Britain reported several big customers of U.K. semiconductor company Arm came out in support of its proposed takeover by Nvidia.

Facebook climbed 4.2% after a federal judge dismissed antitrust lawsuits brought against it by the Federal Trade Commission and a group of state attorneys general.

Still, worries remain on Wall Street, and a measure of nervousness in the stock market ticked up by about 1%.

Some measures of the economy may have already hit their peaks after roaring out of the recession caused by the pandemic. Stock prices look expensive to critics after rising much faster than corporate profits. And inflation remains a worry, even if more investors have come around to the Federal Reserve’s view that it will be only a temporary problem.

Much of the choppiness in the markets is a result of the speed at which the economy has bounced back from its pandemic slump.

“When you come out of it rapidly it starts to raise concerns for investors, but I would remind them that we are still early in a cycle,” said Brian Levitt, global market strategist at Invesco. “I would expect this to play out over time.”

The next turning point for the market could come on Friday, when the U.S. government gives the latest monthly update on how many jobs the economy is creating and what wages are doing.

Economists expect the report to show that employers added 700,000 more jobs than they cut in June. That would be an acceleration following a couple months of disappointingly slow hiring.

They also expect the report to show that average hourly earnings jumped 3.7% in June from a year earlier.

A sharp rise in wages would be an even bigger worry about inflation for markets than the recent jump in commodity prices. Oil, lumber and other commodities have shown this year that they can quickly shoot higher in price, but they can also come down nearly as quickly.

Higher wages for workers, meanwhile, tend to be more durable. If inflation does end up being more than the “transitory” problem that the Fed and many investors seem to believe, that could force the Fed to be more aggressive about raising interest rates quickly and upset markets.

Crude oil prices slipped Monday, but the cost of a U.S. barrel is still up 50% for the year. That’s contributed to gasoline prices that are about 90 cents higher than this time last year.

 

[bigdog]

Stocks hold steady at records in quiet day on Wall Street

U.S. stocks drifted further into record heights in a listless day of trading on Tuesday, as Wall Street waits for the heavyweight economic data coming at the end of the week.

The S&P 500 inched up by 1.19 points, or less than 0.1%, to 4,291.80 and added to its all-time high set a day earlier. More stocks fell than rose within the index, but gains for tech companies made up for weakness for banks and utilities.

The Dow Jones Industrial Average edged higher by 9.02 points, or less than 0.1%, to 34,292.29. The Nasdaq composite added 27.83, or 0.2%, to its record high from a day before and finished at 14,528.33.

Stocks have set their recent records on optimism that the economy is strengthening and that the Federal Reserve will keep interest rates low for a while longer.

A report released Tuesday morning showed a measure of confidence among U.S. consumers is continuing to rise, beating economists’ expectations for a slight decline. That’s key for an economy made up mostly of spending by consumers.

A separate report showed that home prices across the country rose again in April, continuing their blistering pace.

With one day left in June, the market is getting ready to close out a strong first half of the year. The S&P 500 is on track for a gain of 14.3%, more than double its average for a full year, going back to the start of the millennium.

Technology stocks did much of Tuesday’s heavy lifting for the broader market. Apple rose 1.2%, and Microsoft gained 1%.

Major banks announced plans to return billions of dollars to their shareholders through dividend increases and stock buybacks after passing the Federal Reserve’s most recent “stress tests.”

Morgan Stanley rose 3.4% after announcing a doubling of its dividend and plans to buy back $12 billion of its own stock. Other bank stocks were mixed following their own announcements. Goldman Sachs rose 1.1%, but Bank of America fell 1.6%. As a group, financial stocks in the S&P 500 fell.

ASX 200 expected to rise​

The Australian share market looks set to push higher on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 25 points or 0.35% higher this morning.

This follows a reasonably positive night of trade on Wall Street which saw the Dow Jones and S&P 500 rise slightly and the Nasdaq push 0.2% higher.

Asian shares advance despite weaker factory data, outbreaks

Shares are mostly higher in Asia despite new data showing Asian factory activity slowed this month as virus outbreaks disrupted shipping at some Chinese ports.

apnews.com

Stocks hold steady at records in quiet day on Wall Street

By DAMIAN J. TROISE and STAN CHOE

NEW YORK (AP) — U.S. stocks drifted further into record heights in a listless day of trading on Tuesday, as Wall Street waits for the heavyweight economic data coming at the end of the week.

The S&P 500 inched up by 1.19 points, or less than 0.1%, to 4,291.80 and added to its all-time high set a day earlier. More stocks fell than rose within the index, but gains for tech companies made up for weakness for banks and utilities.

The Dow Jones Industrial Average edged higher by 9.02 points, or less than 0.1%, to 34,292.29. The Nasdaq composite added 27.83, or 0.2%, to its record high from a day before and finished at 14,528.33.

Stocks have set their recent records on optimism that the economy is strengthening and that the Federal Reserve will keep interest rates low for a while longer.

A report released Tuesday morning showed a measure of confidence among U.S. consumers is continuing to rise, beating economists’ expectations for a slight decline. That’s key for an economy made up mostly of spending by consumers.

A separate report showed that home prices across the country rose again in April, continuing their blistering pace.

With one day left in June, the market is getting ready to close out a strong first half of the year. The S&P 500 is on track for a gain of 14.3%, more than double its average for a full year, going back to the start of the millennium.

Technology stocks did much of Tuesday’s heavy lifting for the broader market. Apple rose 1.2%, and Microsoft gained 1%.

Major banks announced plans to return billions of dollars to their shareholders through dividend increases and stock buybacks after passing the Federal Reserve’s most recent “stress tests.”

Morgan Stanley rose 3.4% after announcing a doubling of its dividend and plans to buy back $12 billion of its own stock. Other bank stocks were mixed following their own announcements. Goldman Sachs rose 1.1%, but Bank of America fell 1.6%. As a group, financial stocks in the S&P 500 fell.

The big piece of economic data this week will be Friday’s jobs report for June. Economists expect it to show U.S. employers created 675,000 more jobs than they cut, with the unemployment rate falling to 5.7%.

Job growth has been choppy recently, with gains falling disappointingly short of economists’ expectations in recent months. That’s key because the Fed is likely to keep up its support for the economy through low interest rates as long as the job market looks like it needs help.

“This Friday’s unemployment number is pretty important because its going to determine the trajectory of when the Fed is actually going to adjust its policies,” said Andrew Slimmon, portfolio manager at Morgan Stanley Investment Management.

The central bank, meanwhile, has stuck by its position that high inflation is likely to be only temporary. That would allow it to keep interest rates low for longer than it otherwise would.

Long-term bond yields have leveled out after jumping earlier in the year in part because of inflation concerns. The yield on the 10-year Treasury dipped to 1.47% from 1.48% late Monday.

 

[stephen1968]

What instruments are you using to trade the DOW? Also what spread? Thank you!

 

[bigdog]

Wall Street closes out its 5th straight quarterly gain

Wall Street closed out its fifth straight quarterly gain Wednesday, continuing its comeback from a steep drop in early 2020 at the onset of the coronavirus pandemic.

The S&P 500 edged up 0.1%, bringing its advance over the past three months to 8.2% and 14.4% for the first half of the year. The benchmark index finished June with a 2.2% gain and its third straight all-time high as it extended its winning streak to a fifth day.

Stocks have been pushing higher on optimism that the economy is strengthening and that the Federal Reserve will keep interest rates low for a while longer.

“The Fed has sort of kept the proverbial spigot open, if you will, with liquidity, so there’s still a pretty sizable amount of capital out there looking for a place to go,” said Randy Frederick, vice president of trading & derivatives at Charles Schwab.

Meanwhile, concerns about inflation earlier this year have dissipated somewhat, as investors have become increasingly convinced that the rise in prices for everything from food to oil to lumber is temporary and a result of the U.S. economy recovering from the pandemic.

Trading Wednesday was relatively subdued as investors wait for the government’s monthly jobs report due out Friday.

“We’re definitely in the doldrums of summer; volatility and volume will probably be pretty light,” said Jason Pride, chief investment officer of private wealth at Glenmede.

The S&P 500 index rose 5.70 points to 4,297.50. The Dow Jones Industrial Average added 210.22 points, or 0.6%, to 34,502.51. The Nasdaq composite fell 24.38 points, or 0.2%, to 14,503.95. The tech-heavy index hit record highs on Monday and Tuesday.

The Russell 2000 index of small company stocks rose 1.71 points, or 0.1%, to 2,310.55.

Many professional investors along Wall Street say stocks can keep rising from here, just not as much as they did during the first half of the year.

Interest rates remain low, even if the Federal Reserve recently indicated it could start raising rates in about two years. And with the economy continuing to strengthen, supporters say stocks should be able to tick higher even if their prices have climbed faster than corporate profits and look expensive compared with history.

At the Wells Fargo Investment Institute, for example, the forecast is for record corporate earnings this year to help the S&P 500 rise to between 4,400 and 4,600 by the end of 2021. That would mean a gain between 2.4% and 7% from the index’s current level of 4,297.

Some are more pessimistic, though, amid concerns that several measures of growth in the economy have already hit their peak.

ASX 200 expected to edge lower​

The Australian share market looks set to edge lower on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points or 0.05% lower this morning.

This follows a mixed night of trade on Wall Street, which saw the Dow Jones rise 0.61%, the S&P 500 climb 0.13%, and the Nasdaq fall 0.17%

Asian shares mostly decline ahead of watched US jobs report

Asian shares are mostly lower as investors await a much watched U.S. jobs for indications of how the recovery from the pandemic is faring.

apnews.com

Wall Street closes out its 5th straight quarterly gain

By DAMIAN J. TROISE, ALEX VEIGA and STAN CHOE

Wall Street closed out its fifth straight quarterly gain Wednesday, continuing its comeback from a steep drop in early 2020 at the onset of the coronavirus pandemic.

The S&P 500 edged up 0.1%, bringing its advance over the past three months to 8.2% and 14.4% for the first half of the year. The benchmark index finished June with a 2.2% gain and its third straight all-time high as it extended its winning streak to a fifth day.

Stocks have been pushing higher on optimism that the economy is strengthening and that the Federal Reserve will keep interest rates low for a while longer.

“The Fed has sort of kept the proverbial spigot open, if you will, with liquidity, so there’s still a pretty sizable amount of capital out there looking for a place to go,” said Randy Frederick, vice president of trading & derivatives at Charles Schwab.

Meanwhile, concerns about inflation earlier this year have dissipated somewhat, as investors have become increasingly convinced that the rise in prices for everything from food to oil to lumber is temporary and a result of the U.S. economy recovering from the pandemic.

Trading Wednesday was relatively subdued as investors wait for the government’s monthly jobs report due out Friday.

“We’re definitely in the doldrums of summer; volatility and volume will probably be pretty light,” said Jason Pride, chief investment officer of private wealth at Glenmede.

The S&P 500 index rose 5.70 points to 4,297.50. The Dow Jones Industrial Average added 210.22 points, or 0.6%, to 34,502.51. The Nasdaq composite fell 24.38 points, or 0.2%, to 14,503.95. The tech-heavy index hit record highs on Monday and Tuesday.

The Russell 2000 index of small company stocks rose 1.71 points, or 0.1%, to 2,310.55.

Many professional investors along Wall Street say stocks can keep rising from here, just not as much as they did during the first half of the year.

Interest rates remain low, even if the Federal Reserve recently indicated it could start raising rates in about two years. And with the economy continuing to strengthen, supporters say stocks should be able to tick higher even if their prices have climbed faster than corporate profits and look expensive compared with history.

At the Wells Fargo Investment Institute, for example, the forecast is for record corporate earnings this year to help the S&P 500 rise to between 4,400 and 4,600 by the end of 2021. That would mean a gain between 2.4% and 7% from the index’s current level of 4,297.

Some are more pessimistic, though, amid concerns that several measures of growth in the economy have already hit their peak.

Barry Bannister, chief equity strategist at Stifel, says U.S. manufacturing growth likely topped out in March, for example. He sees the recent pullback of stimulus in China leading to slower growth around the world and helping to knock the S&P 500 down to 3,800 in the second half of the year.

So far this year, energy stocks continue to lead the way higher among the 11 sectors in the S&P 500 with a gain of 42.4%. Financials are the next-biggest gainer, up 24.5%, while real estate companies are up 21.7%. Technology companies, the biggest gainers in 2020, are up 13.2%. Utilities lag the rest of the market through the first half of this year with a gain of 0.8%.

As inflation concerns have receded through much of the quarter, that’s helped push solid gains for technology companies. Tech stocks have been the biggest gainers in the S&P 500 this quarter with a 12.9% rise. The sector is viewed as a high-growth area of the market, which tends to do better when inflation is low.

“Inflation expectations got too high,” Pride said. “When they backed off, that was kind of a natural thing.”

Meanwhile, some rising concerns over COVID-19 variants also prompted investors to put more money into the sector, which did particularly well during the height of the pandemic.

For the April-June quarter, American Express led the way higher among the 30 stocks in the Dow with a 17.8% gain. Goldman Sachs Group was a close second-best with a 16.1% advance. Intel fared the worst, losing 12.3%.

Industrial, financial and energy companies were among the winners Wednesday. Those gains were kept in check by a pullback in technology, communication and real estate stocks.

Treasury yields mostly fell. The yield on the 10-year Treasury note fell to 1.47% from 1.48% late Tuesday.

Crop prise rose after the government reported that U.S. farmers planted fewer acres of corn and soybeans than had been expected.

Investors got another dose of good economic news on Wednesday when payroll processor ADP said the private sector created 692,000 jobs last month. above economists’ forecasts. The big jobs data point will come on Friday, when the monthly jobs report is released. Economists are expecting employers created 675,000 jobs last month, and the unemployment rate fell to 5.7%.

Didi Global, a Chinese ride-hailing service, rose 1% in its U.S. stock market debut. The company’s initial public offering of 288 million shares was priced at $14 a share.

 

[bigdog]

Wall Street hits another record; energy stocks, banks gain

Stocks finished broadly higher on Wall Street Thursday, adding to the gains that helped the market close out its best first half of a year since the dotcom bubble.

The S&P 500 rose 0.5%, marking its sixth straight gain and fourth consecutive record high. The price of U.S. crude oil rose more than 2%, giving a boost to energy companies. Bond yields edged higher and helped lift bank stocks. Health care and communication companies also helped lift the market. The consumer staples sector was the only laggard, weighed down by a pullback in shares of Walgreens Boots Alliance.

Investors have been encouraged by data that show the economy continues its recovery from the pandemic. The latest weekly unemployment report showed the lowest number of claims for jobless aid since the pandemic walloped the economy. The highly anticipated jobs report for June comes out Friday.

“Investors are eager to see whether or not the labor market continues to recover as quickly as expected,” said Charlie Ripley, senior investment strategist for Allianz Investment Management.

The S&P 500 index rose 22.44 points to 4,319.94. The Dow Jones Industrial Average gained 131.02 points, or 0.4%, to 34,633.53. The technology-heavy Nasdaq Composite added 18.42 points, or 0.1%, to 14,522.38.

Small company stocks fared better than the rest of the market. The Russell 2000 index of smaller companies rose 18.81 points, or 0.8%, to 2,329.36.

The benchmark S&P 500 ended the first half of 2021 up 14.5%, it’s best six month period since 1998, as investors have embraced the post-pandemic economic recovery and set aside worries about inflation.

Employment has been one of the shakier areas of the economic recovery and has lagged other measures such as consumer confidence and retail sales. Economists and analysts have said that a much fuller and more stable recovery is dependent on more people going back to work.

On Friday investors will get the June jobs report. Economists surveyed by FactSet expect the U.S. economy created 675,000 jobs last month, and the unemployment rate fell to 5.7%.

ASX 200 expected to rebound

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 31 points or 0.4% higher this morning.

This follows a solid night on Wall Street which saw the Dow Jones rise 0.38%, the S&P 500 climb 0.52%, and the Nasdaq push 0.13% higher.

https://apnews.com/article/financia...rus-pandemic-4ce2546ea75493a5d4d506f4df9f77a8

Wall Street hits another record; energy stocks, banks gain

By DAMIAN J. TROISE and ALEX VEIGA

Stocks finished broadly higher on Wall Street Thursday, adding to the gains that helped the market close out its best first half of a year since the dotcom bubble.

The S&P 500 rose 0.5%, marking its sixth straight gain and fourth consecutive record high. The price of U.S. crude oil rose more than 2%, giving a boost to energy companies. Bond yields edged higher and helped lift bank stocks. Health care and communication companies also helped lift the market. The consumer staples sector was the only laggard, weighed down by a pullback in shares of Walgreens Boots Alliance.

Investors have been encouraged by data that show the economy continues its recovery from the pandemic. The latest weekly unemployment report showed the lowest number of claims for jobless aid since the pandemic walloped the economy. The highly anticipated jobs report for June comes out Friday.

“Investors are eager to see whether or not the labor market continues to recover as quickly as expected,” said Charlie Ripley, senior investment strategist for Allianz Investment Management.

The S&P 500 index rose 22.44 points to 4,319.94. The Dow Jones Industrial Average gained 131.02 points, or 0.4%, to 34,633.53. The technology-heavy Nasdaq Composite added 18.42 points, or 0.1%, to 14,522.38.

Small company stocks fared better than the rest of the market. The Russell 2000 index of smaller companies rose 18.81 points, or 0.8%, to 2,329.36.

The benchmark S&P 500 ended the first half of 2021 up 14.5%, it’s best six month period since 1998, as investors have embraced the post-pandemic economic recovery and set aside worries about inflation.

Employment has been one of the shakier areas of the economic recovery and has lagged other measures such as consumer confidence and retail sales. Economists and analysts have said that a much fuller and more stable recovery is dependent on more people going back to work.

On Friday investors will get the June jobs report. Economists surveyed by FactSet expect the U.S. economy created 675,000 jobs last month, and the unemployment rate fell to 5.7%.

The June jobs report is also being closely watched as a potential gauge for when the Federal Reserve might start easing its bond purchases and other measures that have kept interest rates low. Inflation fears have somewhat subsided, but investors are still trying to figure out whether rising inflation will be temporary or more long-lasting.

As part of the jobs report, investors will look to see if wages kept rising, which could add to inflation.

“All of these things are feeding into whether the Fed makes material changes to policy in near future,” Ripley said.

Airlines and other travel-related companies that have been battered by the pandemic gained ground following the latest upbeat unemployment data. Delta Air Lines rose 2.2% and Marriott gained 2%.

The yield on the 10-year Treasury note rose to 1.46% from 1.44% the day before.

Oil prices jumped as OPEC met. The group of oil-producing countries is considering whether to increase production as the global economy recovers from the pandemic. Oil prices along with other raw materials have risen steadily this year as demand has increased. Oil gained 2.4% Thursday and is up 55% so far this year.

“Crude oil has really been the story of the day,” said J.J. Kinahan, chief strategist with TD Ameritrade. “Crude oil, because almost everybody is going to use gasoline directly to drive somewhere, that’s going to hit people’s pocket books a lot quicker and has a lot bigger effect.”

Higher oil prices translated into higher energy company stocks. Occidental Petroleum rose 5.1%, ConocoPhillips gained 3.3% and Marathon Oil added 4%. The energy sector of the S&P 500 was the biggest winner in the first half of the year with a gain of over 40%.

Doughnut chain Krispy Kreme climbed 23.5% in its debut on the Nasdaq. The Charlotte, North Carolina-based company, known for its glazed doughnuts, priced its initial public offering of 29.4 million shares at $17 a piece, which was well below the $21 to $24 it was seeking. This marks Krispy Kreme’s second stint as a public company.

 

[bigdog]

U.S. stock markets will be closed Monday in observance of Independence Day.

Stocks again post records following encouraging jobs data

Wall Street capped a milestone-shattering week Friday with stock indexes hitting more record highs as investors welcomed a report showing the nation’s job market was even stronger last month than expected.

The S&P 500 rose 0.8%, its seventh straight gain and seventh consecutive all-time high. The benchmark index also notched its second weekly gain in a row. The Nasdaq also set a record, getting a boost from technology stocks, which led the broad market rally. The only laggards were energy stocks and banks, which fell as Treasury yields headed lower.

Indexes climbed as soon as trading opened, after a U.S. government report said employers hired 850,000 more workers than they cut last month. It was a healthier reading than the 700,000 economists expected and an acceleration following a couple months of disappointing growth.

Still, unemployment remains well above the 3.5% rate that prevailed before the pandemic struck, and the economy remains 6.8 million jobs short of its pre-pandemic level. And while wages grew in June, the increase was less than expected, a good sign for investors worried about inflation pressures.

Economists took the report as a sign that workers will indeed come back into the labor force as more people get vaccinated and the pandemic eases. Perhaps more importantly for markets, some said the numbers likely mean the Federal Reserve can stay on the course it’s set, keeping interest rates low for a while longer to support the economy.

“The wage inflation number didn’t pick up to the degree some people were anticipating, so that’s probably a little bit reassuring to the market as well,” said Andrew Mies, chief investment officer at investment advisory firm 6 Meridien.

The S&P 500 rose 32.40 points to 4,352.34. The Dow Jones Industrial Average gained 152.82 points, or 0.4%, to 34,786.35. The Nasdaq composite added 116.95 points, or 0.8%, to 14,639.33.

Smaller stocks in the Russell 2000 lagged. The index fell 23.60 points, or 1%, to 2,305.76.

Treasury yields were flat to lower following the jobs report, and the yield on the 10-year Treasury fell to 1.43% from 1.48% late Thursday.

Low interest rates help drive up prices for all kinds of stocks, but they provide particularly powerful fuel for high-growth companies whose prices may otherwise look expensive.

That helped push several influential tech-oriented stocks higher Friday. Microsoft gained 2.2%, and Apple rose 2%. Because those companies are so big, their stock movements carry extra heft for indexes, and they helped make up for losses by energy producers and financial companies.

Virgin Galactic rose 4.1% after saying it hopes to launch a test spaceflight on July 11, with its founder Richard Branson on board.

U.S.-listed shares of Didi, a Chinese ride-hailing service, slumped 5.3% after China’s internet watchdog said it launched an investigation into the ride-hailing company to protect national security and public interest. Its shares began trading in New York on Wednesday.

Markets in both Europe and Asia were mixed.

https://apnews.com/article/financia...mic-business-543147e0bd3017883e1dfe47910f4ad7

Stocks again post records following encouraging jobs data

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA

Wall Street capped a milestone-shattering week Friday with stock indexes hitting more record highs as investors welcomed a report showing the nation’s job market was even stronger last month than expected.

The S&P 500 rose 0.8%, its seventh straight gain and seventh consecutive all-time high. The benchmark index also notched its second weekly gain in a row. The Nasdaq also set a record, getting a boost from technology stocks, which led the broad market rally. The only laggards were energy stocks and banks, which fell as Treasury yields headed lower.

Indexes climbed as soon as trading opened, after a U.S. government report said employers hired 850,000 more workers than they cut last month. It was a healthier reading than the 700,000 economists expected and an acceleration following a couple months of disappointing growth.

Still, unemployment remains well above the 3.5% rate that prevailed before the pandemic struck, and the economy remains 6.8 million jobs short of its pre-pandemic level. And while wages grew in June, the increase was less than expected, a good sign for investors worried about inflation pressures.

Economists took the report as a sign that workers will indeed come back into the labor force as more people get vaccinated and the pandemic eases. Perhaps more importantly for markets, some said the numbers likely mean the Federal Reserve can stay on the course it’s set, keeping interest rates low for a while longer to support the economy.

“The wage inflation number didn’t pick up to the degree some people were anticipating, so that’s probably a little bit reassuring to the market as well,” said Andrew Mies, chief investment officer at investment advisory firm 6 Meridien.

The S&P 500 rose 32.40 points to 4,352.34. The Dow Jones Industrial Average gained 152.82 points, or 0.4%, to 34,786.35. The Nasdaq composite added 116.95 points, or 0.8%, to 14,639.33.

Smaller stocks in the Russell 2000 lagged. The index fell 23.60 points, or 1%, to 2,305.76.

Treasury yields were flat to lower following the jobs report, and the yield on the 10-year Treasury fell to 1.43% from 1.48% late Thursday.

Low interest rates help drive up prices for all kinds of stocks, but they provide particularly powerful fuel for high-growth companies whose prices may otherwise look expensive.

That helped push several influential tech-oriented stocks higher Friday. Microsoft gained 2.2%, and Apple rose 2%. Because those companies are so big, their stock movements carry extra heft for indexes, and they helped make up for losses by energy producers and financial companies.

The Fed has said it will keep rates low to help strengthen the job market, and Friday’s report suggested to several investors that growth in jobs or inflation wasn’t high enough to alter its course. Average hourly wages for workers were 3.6% higher in June than a year ago, but the rise from May was slightly below economists’ expectations at 0.3%.

“Maybe with wage growth and inflation having peaked, we can get past the peak fears of some sort of wage-price doom-loop,” said Brian Jacobsen, senior investment strategist, Wells Fargo Asset Management.

The Fed has been insisting that the higher inflation hitting the economy now will be only temporary, which would give it more leeway to keep its support for the economy in place. Many investors expect it to announce a pullback in its bond purchases later this year, well before expectations for the Fed to move short-term rates off their record low in 2022 or 2023.

If job growth or inflation is stronger and more persistent than expected, though, it could force the Fed to move up its timetable and raise rates more aggressively.

“The Fed wants to let the economy run as hot as possible and the let the unemployment rate get as low as possible without triggering hot inflation,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. “Inflation may run hot, and that could speed up plans for tapering, but as far as raising rates I think they are still going to wait a long time.”

Virgin Galactic rose 4.1% after saying it hopes to launch a test spaceflight on July 11, with its founder Richard Branson on board.

U.S.-listed shares of Didi, a Chinese ride-hailing service, slumped 5.3% after China’s internet watchdog said it launched an investigation into the ride-hailing company to protect national security and public interest. Its shares began trading in New York on Wednesday.

Markets in both Europe and Asia were mixed.

U.S. stock markets will be closed Monday in observance of Independence Day.

 

[bigdog]

U.S. stock markets will be closed Monday in observance of Independence Day.

ASX 200 expected to open flat​

The Australian share market is expected to start the week where it ended it. According to the latest SPI futures, the ASX 200 is expected to open the day flat.

This is despite a very positive end to the week on Wall Street, which saw the Dow Jones rise 0.45%, the S&P 500 climb 0.75%, and the Nasdaq storm 0.8% higher.

 

[bigdog]

https://apnews.com/article/financia...rus-pandemic-fcc344d96997707e3dd4fe457eb325b2

World shares mixed, US markets closed for Independence Day

By ELAINE KURTENBACH

BANGKOK (AP) — Global shares were mixed Monday in quiet trading, with U.S. markets set to be closed for the Independence Day holiday.

London and Shanghai advanced, while Paris, Tokyo and Hong Kong declined.

U.S. futures edged lower after Wall Street capped a milestone-shattering week Friday with stock indexes hitting more record highs as investors welcomed a report showing the nation’s job market was even stronger last month than expected.

Oil prices reversed early losses ahead of a meeting of oil producing nations as the United Arab Emirates pushed back against a plan by the OPEC oil cartel and allied producing countries to extend a global pact to cut oil production beyond April 2022.

Benchmark U.S. crude oil picked up 22 cents to $75.38 per barrel in electronic trading on the New York Mercantile Exchange. It shed 7 cents on Friday to $75.16 per barrel. Brent crude, the international standard, added 30 cents to $76.47 per barrel.

The UAE, one of OPEC’s largest oil producers, wants to increase its output — setting up a contest with ally and OPEC heavyweight Saudi Arabia, which has led a push to keep a tight lid on production.

The combined OPEC Plus grouping of members led by Saudi Arabia and non-members, chief among them Russia, failed to reach an agreement Friday on oil output. Negotiations over the dispute are set to resume Monday.

Germany’s DAX lost 0.4% to 15,595.75 and the CAC 40 in Paris shed 0.2% to 6,545.19. Britain’s FTSE 100 edged 0.1% higher to 7,133.40. The future for the S&P 500 lost 0.1% and that for the Dow industrials fell less than 0.1%.

Worries remain across Asia about rising coronavirus cases as outbreaks of new infections overtake vaccination efforts. In Thailand and Indonesia, local authorities have reported record high new cases.

Tokyo’s Nikkei 225 lost 0.6% to 28,598.19 and the Hang Seng in Hong Kong declined 0.7% to 28,143.50. The Shanghai Composite index gained 0.4% to 3,534.32 and South Korea’s Kospi picked up 0.4% to 3,293.21. In Australia, the S&P/ASX 200 edged 0.1% higher to 7,315.00.

China announced over the weekend that Chinese ride-hailing service Didi would be removed from app stores in the country in the latest blow after its shares began trading in New York on June 30.

The U.S.-listed shares of Didi slumped 5.3% on Friday after China’s internet watchdog said it launched an investigation into the company to protect national security and public interest.

ASX 200 expected to rise​

The Australian share market looks set to push higher again this morning. According to the latest SPI futures, the ASX 200 is expected to open the day 14 points or 0.2% higher.

This follows a positive start to the week on European markets, which saw the FTSE rise 0.6%, the CAC rise 0.2%, and the DAX edge 0.1% higher. Wall Street was closed for the Independence Day holiday.



U.S. stock markets were closed Monday in observance of Independence Day.

REST of WORLD TRADING

 

[bigdog]

S&P 500 sees 1st decline after 7 straight gains; oil falls

Banks and energy companies helped pull stocks mostly lower on Wall Street Tuesday, ending the S&P 500′s seven-day run of record high closes.

The benchmark index fell 0.2% after having been down 0.9%. The Dow Jones Industrial Average fell 0.6%. Tech stocks rose, helping the Nasdaq to a modest gain that nudged the index to an all-time high.

Oil prices retreated after jumping overnight when talks among members of the OPEC cartel and allied oil producing countries broke off amid a standoff with the United Arab Emirates over production levels. The news dragged energy stocks lower.

Bond prices rose, sending the yield on the 10-year Treasury to its lowest level since February. The decline in bond yields weighed on banks, which led the slide in the S&P 500.

“We had a really strong move coming into this week,” said Mark Hackett, chief of investment research at Nationwide. “It’s almost natural to have a pullback when you have that kind of move.”

The S&P 500 dropped 8.80 points to 4,343.54. The index notched seven consecutive record highs from June 24 through last Friday, gaining 2.6% during that period. It’s now up 15.6% for the year.

The Dow fell 208.98 points, or 0.6%, to 34,577.37, while the Nasdaq Composite rose 24.32 points, or 0.2%, to 14,663.64. The tech-heavy index also set a record high on Friday.

The Russell 2000 index of smaller stocks has some of the biggest losses, sliding 31.26 points, or 1.4%, to 2,274.50.

The market sell-off got going early following a report showing growth in the services sector, where most Americans work, slowed in June following record expansion in May.

Longer-term Treasury yields sank as the report suggested this year’s surge in inflation may have already peaked and as nervousness rose in the market.

The 10-year Treasury yield dropped to 1.36% from 1.44% on Friday and is back to where it was in February. It had rallied powerfully earlier this year on worries that inflation was set to burst to dangerous levels as the economy roared back to life.

The report indicated prices that U.S. services businesses are paying rose at a slower rate last month. Exam gloves and masks got cheaper, for example, and the price index for the U.S. services industry decelerated to 79.5 in June after hitting a peak of 80.6 in May, according to the Institute for Supply Management. Any reading above 50 indicates growth.

More broadly, the services industry’s growth slowed last month, and by more than economists expected. That fits into Wall Street’s increasing belief that growth for many areas of the economy is peaking or has done so already.

The market is currently in a summer lull, with investors having little to act on until next week, when corporate earnings season starts up again. Investors face a holiday shortened week this week, since stock markets were closed on Monday.

“When you have a void of information, emotion tends to drive decision making and you’re certainly seeing that in the equity market,” Hackett said.

Shares of ride-hailing company Didi Global dropped 19.6%. That follows a 5% drop Friday after China announced it would investigate the cybersecurity practices of three ride technology companies, including Didi. The government has also announced cybersecurity reviews of Full Truck Alliance, the operator of two truck logistics platforms and Kanzhun Ltd., operator of an online recruitment outfit. Full Truck dropped 6.7% and Kanzhun fell 15.9%.

Amazon jumped 4.7% after the Pentagon said it is canceling a cloud-computing contract with Microsoft that could eventually have been worth $10 billion and will instead pursue a deal with both Microsoft and Amazon. Microsoft shares were little changed.

ASX 200 expected to fall​

The Australian share market looks set to edge lower on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 4 points or 0.1% lower this morning.

This follows a poor start to the shortened week on Wall Street, which saw the Dow Jones fall 0.6%, the S&P 500 drop 0.2%, and the Nasdaq push 0.17% higher.

Asian stocks follow Wall St lower on weak US services data

Asian stock markets have followed Wall Street lower after U.S. services activity weakened. Market benchmarks in Tokyo, Hong Kong and Seoul declined.

apnews.com

S&P 500 sees 1st decline after 7 straight gains; oil falls

By DAMIAN J. TROISE and ALEX VEIGA

Banks and energy companies helped pull stocks mostly lower on Wall Street Tuesday, ending the S&P 500′s seven-day run of record high closes.

The benchmark index fell 0.2% after having been down 0.9%. The Dow Jones Industrial Average fell 0.6%. Tech stocks rose, helping the Nasdaq to a modest gain that nudged the index to an all-time high.

Oil prices retreated after jumping overnight when talks among members of the OPEC cartel and allied oil producing countries broke off amid a standoff with the United Arab Emirates over production levels. The news dragged energy stocks lower.

Bond prices rose, sending the yield on the 10-year Treasury to its lowest level since February. The decline in bond yields weighed on banks, which led the slide in the S&P 500.

“We had a really strong move coming into this week,” said Mark Hackett, chief of investment research at Nationwide. “It’s almost natural to have a pullback when you have that kind of move.”

The S&P 500 dropped 8.80 points to 4,343.54. The index notched seven consecutive record highs from June 24 through last Friday, gaining 2.6% during that period. It’s now up 15.6% for the year.

The Dow fell 208.98 points, or 0.6%, to 34,577.37, while the Nasdaq Composite rose 24.32 points, or 0.2%, to 14,663.64. The tech-heavy index also set a record high on Friday.

The Russell 2000 index of smaller stocks has some of the biggest losses, sliding 31.26 points, or 1.4%, to 2,274.50.

The market sell-off got going early following a report showing growth in the services sector, where most Americans work, slowed in June following record expansion in May.

Longer-term Treasury yields sank as the report suggested this year’s surge in inflation may have already peaked and as nervousness rose in the market.

The 10-year Treasury yield dropped to 1.36% from 1.44% on Friday and is back to where it was in February. It had rallied powerfully earlier this year on worries that inflation was set to burst to dangerous levels as the economy roared back to life.

The report indicated prices that U.S. services businesses are paying rose at a slower rate last month. Exam gloves and masks got cheaper, for example, and the price index for the U.S. services industry decelerated to 79.5 in June after hitting a peak of 80.6 in May, according to the Institute for Supply Management. Any reading above 50 indicates growth.

More broadly, the services industry’s growth slowed last month, and by more than economists expected. That fits into Wall Street’s increasing belief that growth for many areas of the economy is peaking or has done so already.

“What I took from that is that economic growth is slowing,” said Sam Stovall, chief investment strategist at CFRA.

The report would also give credence to the Federal Reserve’s insistence that inflation looks to be only a temporary problem.

The lower yields pressured banks, which rely on higher yields to charge more lucrative interest on loans. Bank of America fell 2.6% and Citigroup fell 3.1%.

Oil prices pulled back amid a dispute among oil producers over production levels. The U.S. benchmark crude oil price fell 2.4% to $73.37; it earlier rose to $76.98, the highest level since November 2014.

Falling oil prices dragged down energy companies. Exxon Mobil fell 2.8% and Chevron fell 2%.

The market is currently in a summer lull, with investors having little to act on until next week, when corporate earnings season starts up again. Investors face a holiday shortened week this week, since stock markets were closed on Monday.

“When you have a void of information, emotion tends to drive decision making and you’re certainly seeing that in the equity market,” Hackett said.

Shares of ride-hailing company Didi Global dropped 19.6%. That follows a 5% drop Friday after China announced it would investigate the cybersecurity practices of three ride technology companies, including Didi. The government has also announced cybersecurity reviews of Full Truck Alliance, the operator of two truck logistics platforms and Kanzhun Ltd., operator of an online recruitment outfit. Full Truck dropped 6.7% and Kanzhun fell 15.9%.

Amazon jumped 4.7% after the Pentagon said it is canceling a cloud-computing contract with Microsoft that could eventually have been worth $10 billion and will instead pursue a deal with both Microsoft and Amazon. Microsoft shares were little changed.

 

[bigdog]

Stocks close higher, led by gains for tech; bond yields drop

Wall Street capped a day of choppy trading Wednesday with more record highs for stocks and another drop in bond yields that sends mixed signals about investors’ confidence in the market.

The S&P 500 recovered from an early stumble and rose 0.3% to an all-time high. The benchmark index snapped a 7-day winning streak of high closes a day earlier. The Nasdaq composite also set a record high, its third straight.

Technology, industrial and health care companies accounted for a big share of the gains. Apple rose 1.8%, Otis added 2% and Biogen gained 3%. Those gains were kept in check by a slide in other sectors, including energy, which fell as oil prices dropped 1.6%.

The bond market continued to draw buyers, a trend that has pulled yields sharply lower this week despite economic data showing the economy continues to recover from the pandemic. The yield on the 10-year Treasury fell to 1.32% from 1.37% a day earlier.

“There’s a pretty clear disconnect between stocks and bonds,” said Jon Adams, senior investment strategist at BMO Global Asset Management.

The S&P 500 rose 14.59 points to 4,358.13. The Dow Jones Industrial Average added 104.42 points, or 0.3%, to 34,681.79, while the Nasdaq inched up 1.42 points, or less than 0.1%, to 14,665.06. The Russell 2000 index of smaller stocks slid 21.66 points, or 1%, to 2,252.85.

Stock indexes and Treasury yields had little reaction to the minutes from the June meeting of Federal Reserve policymakers, which showed Fed officials discussed the timing of reducing bond purchases that they have used to keep longer-term interest rates in check.

The discussions signal that the Fed is moving closer to a decision to taper those purchases, though most analysts don’t expect a reduction until late this year. After the last meeting, Fed policymakers said they planned to raise interest rates as soon as 2023, which was sooner than the market expected.

“The bond market is agreeing with what the Fed has talked about in terms of transitory inflation and maybe going a step further and saying we’re not real sure about how resilient this recovery is going to be once some of the stimulus starts to fade,” said Willie Delwiche, investment strategist at All Star Charts. “If there’s some uncertainty about equities, investors are taking this chance to move back into bonds a little bit.”

Longer-term Treasury yields have tumbled since the spring as traders back away from big bets built on expectations for a powerful pickup in inflation and economic growth.

The yield on the 10-year Treasury sank as low as 1.28% Wednesday, down from its perch above 1.75% in March. A month ago, it was trading at around 1.62%. The last time bond yields moved lower so quickly was in March 2020 when the pandemic effectively shut down the U.S. economy.

Longer-term yields tend to move along with investors’ expectations for inflation and economic growth, and both are still very strong and much higher than they’ve been in recent years. But investors along Wall Street increasingly suspect they’ve already topped out as the economy moves past the initial catapult phase of its recovery from the pandemic.

ASX 200 expected to rise​

The Australian share market looks set to rise again on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 17 points or 0.2% higher this morning.

This follows a decent night of trade on Wall Street, which saw the Dow Jones rise 0.3%, the S&P 500 climb 0.34%, and the Nasdaq edge ever so slightly higher.

Asian stocks fall after Fed discusses cut in US stimulus

Asian stock markets have declined after the Federal Reserve discussed a possible reduction in U.S. stimulus and Japanese officials recommended declaring a coronavirus state of emergency during the Olympics.

apnews.com

Stocks close higher, led by gains for tech; bond yields drop

By DAMIAN J. TROISE, ALEX VEIGA and STAN CHOE

Wall Street capped a day of choppy trading Wednesday with more record highs for stocks and another drop in bond yields that sends mixed signals about investors’ confidence in the market.

The S&P 500 recovered from an early stumble and rose 0.3% to an all-time high. The benchmark index snapped a 7-day winning streak of high closes a day earlier. The Nasdaq composite also set a record high, its third straight.

Technology, industrial and health care companies accounted for a big share of the gains. Apple rose 1.8%, Otis added 2% and Biogen gained 3%. Those gains were kept in check by a slide in other sectors, including energy, which fell as oil prices dropped 1.6%.

The bond market continued to draw buyers, a trend that has pulled yields sharply lower this week despite economic data showing the economy continues to recover from the pandemic. The yield on the 10-year Treasury fell to 1.32% from 1.37% a day earlier.

“There’s a pretty clear disconnect between stocks and bonds,” said Jon Adams, senior investment strategist at BMO Global Asset Management.

The S&P 500 rose 14.59 points to 4,358.13. The Dow Jones Industrial Average added 104.42 points, or 0.3%, to 34,681.79, while the Nasdaq inched up 1.42 points, or less than 0.1%, to 14,665.06. The Russell 2000 index of smaller stocks slid 21.66 points, or 1%, to 2,252.85.

Stock indexes and Treasury yields had little reaction to the minutes from the June meeting of Federal Reserve policymakers, which showed Fed officials discussed the timing of reducing bond purchases that they have used to keep longer-term interest rates in check.

The discussions signal that the Fed is moving closer to a decision to taper those purchases, though most analysts don’t expect a reduction until late this year. After the last meeting, Fed policymakers said they planned to raise interest rates as soon as 2023, which was sooner than the market expected.

“The bond market is agreeing with what the Fed has talked about in terms of transitory inflation and maybe going a step further and saying we’re not real sure about how resilient this recovery is going to be once some of the stimulus starts to fade,” said Willie Delwiche, investment strategist at All Star Charts. “If there’s some uncertainty about equities, investors are taking this chance to move back into bonds a little bit.”

Longer-term Treasury yields have tumbled since the spring as traders back away from big bets built on expectations for a powerful pickup in inflation and economic growth.

The yield on the 10-year Treasury sank as low as 1.28% Wednesday, down from its perch above 1.75% in March. A month ago, it was trading at around 1.62%. The last time bond yields moved lower so quickly was in March 2020 when the pandemic effectively shut down the U.S. economy.

Longer-term yields tend to move along with investors’ expectations for inflation and economic growth, and both are still very strong and much higher than they’ve been in recent years. But investors along Wall Street increasingly suspect they’ve already topped out as the economy moves past the initial catapult phase of its recovery from the pandemic.

A report on Tuesday showed growth in the U.S. services industry slowed last month, for example, and by more than economists expected.

A wide range of other reasons are behind the sharp drop in yields in recent months, said Adams. Chief among them is growing doubt in the market that the Fed would allow inflation to stay above 2% for a while before raising rates or making other moves to stamp it out, regardless of its new policy to do just that.

Adams also pointed to worries that new variants of COVID-19 could drag down the global economy and increased buying of Treasurys by buyers from countries whose bonds were offering even less in yields.

Lower bond yields can be good for many parts of the economy, however. Mortgage rates are tied closely to bond yields, and government borrowing costs fall when the cost of issuing bonds decreases.

What’s been perhaps as striking as the swift drop for Treasury yields is the relative calmness in the stock market.

“There’s a fundamental reset going on right now where investors are looking beyond 2021 and 2022,” said Katie Nixon, chief investment officer at Northern Trust Wealth Management. “Once we get beyond the recovery, the next normal is probably going to look like the last normal.”

 

[bigdog]

Stocks pull back from record highs as bond yields sink again

Stocks closed lower Thursday on Wall Street as bond yields fell again and investors turned cautious following the market’s recent run of record highs.

The S&P 500 fell 0.9%, weighed down by a broad slide driven mainly by technology, financial, industrial and communication companies. The benchmark index’s pullback comes a day after it hit its eighth all-time high in nine trading days.

The yield on the 10-year Treasury note fell to 1.30%, the lowest level since February, after slipping to 1.32% a day earlier. The benchmark yield, which is used to set rates on mortgages and many other kinds of loans, has been falling steadily in recent weeks as traders shift money into bonds. The 10-year yield traded as high as 1.74% at the end of March.

The bond market has been signaling concerns over the strength of the recovery for months, specifically that it may have peaked and is now leveling off to a steadier pace. The stock market has largely ignored those signals, analysts said, but could be coming around to that message amid struggling job growth and lackluster economic reports.

“You can’t ignore what the bond market has been telling us,” said J.J. Kinahan, chief strategist with TD Ameritrade.

The S&P 500 fell 37.31 points to 4,320.82. The Dow Jones Industrial Average lost 259.86 points, or 0.7%, to 34,421.93. The Nasdaq composite snapped a three-day run of closing highs, dropping 105.28 points, or 0.7%, to 14,559.78.

Smaller company stocks also fell. The Russell 2000 index slid 21.17 points, or 0.9%, to 2,231.68.

Longer-term yields tend to move along with investors’ expectations for inflation and economic growth, and both are still very strong and much higher than they’ve been in recent years. But Wall Street increasingly suspects they’ve already topped out as the economy moves past the initial catapult phase of its recovery from the pandemic.

For example, two recent reports showed that the manufacturing and services sectors are still growing, but more slowly than previous months and below economists’ expectations.

Railroad stocks were the biggest losers in the S&P 500 Thursday following a published report saying the Biden administration plans to sign an executive order next week directing regulators to take action against consolidation and anticompetitive pricing in the railroad and ocean shipping industries. The report, published by The Wall Street Journal, cited an unnamed source familiar with the situation. Kansas City Southern sank 7.9% for the biggest loss in the S&P 500. Norfolk Southern slid 7.2%, CSX fell 6.2% and Union Pacific closed 4.4% lower.

Investors will be turning their attentions to corporate earnings starting next week, when major banks like JPMorgan Chase, Goldman Sachs and Bank of America report their results. Banks tend to be a proxy for the overall economy, so investors will be analyzing the reports closely and listening to what banks say about the status of lending and spending as the recovery continues.

ASX 200 expected to sink​

The Australian share market looks set to end the week on a disappointing note. According to the latest SPI futures, the ASX 200 is expected to open the day 46 points or 0.6% lower this morning.

This follows a poor night on Wall Street which saw the Dow Jones fall 0.75%, the S&P 500 drop 0.86%, and the Nasdaq tumble 0.72% lower. Global economic recovery concerns weighed on investor sentiment.

Asian shares slip after Wall Street retreat, bond yields dip

Shares are mostly lower in Asia after stocks pulled back from their recent record highs on Wall Street as bond yields fell and investors turned cautious.

apnews.com

Stocks pull back from record highs as bond yields sink again

By DAMIAN J. TROISE and ALEX VEIGA

Stocks closed lower Thursday on Wall Street as bond yields fell again and investors turned cautious following the market’s recent run of record highs.

The S&P 500 fell 0.9%, weighed down by a broad slide driven mainly by technology, financial, industrial and communication companies. The benchmark index’s pullback comes a day after it hit its eighth all-time high in nine trading days.

The yield on the 10-year Treasury note fell to 1.30%, the lowest level since February, after slipping to 1.32% a day earlier. The benchmark yield, which is used to set rates on mortgages and many other kinds of loans, has been falling steadily in recent weeks as traders shift money into bonds. The 10-year yield traded as high as 1.74% at the end of March.

The bond market has been signaling concerns over the strength of the recovery for months, specifically that it may have peaked and is now leveling off to a steadier pace. The stock market has largely ignored those signals, analysts said, but could be coming around to that message amid struggling job growth and lackluster economic reports.

“You can’t ignore what the bond market has been telling us,” said J.J. Kinahan, chief strategist with TD Ameritrade.

The S&P 500 fell 37.31 points to 4,320.82. The Dow Jones Industrial Average lost 259.86 points, or 0.7%, to 34,421.93. The Nasdaq composite snapped a three-day run of closing highs, dropping 105.28 points, or 0.7%, to 14,559.78.

Smaller company stocks also fell. The Russell 2000 index slid 21.17 points, or 0.9%, to 2,231.68.

Longer-term yields tend to move along with investors’ expectations for inflation and economic growth, and both are still very strong and much higher than they’ve been in recent years. But Wall Street increasingly suspects they’ve already topped out as the economy moves past the initial catapult phase of its recovery from the pandemic.

For example, two recent reports showed that the manufacturing and services sectors are still growing, but more slowly than previous months and below economists’ expectations.

On Thursday, the Labor Department said the number of Americans filing for unemployment benefits rose slightly last week even while the economy and the job market appear to be rebounding from the coronavirus recession.

All told, jobless claims increased by 2,000 from the previous week to 373,000. Weekly applications, which generally track the pace of layoffs, have fallen steadily this year from more than 900,000 at the start of the year.

Investors are also gauging the potential impact from COVID-19 variants stymying a resurgence in commerce and travel. Fans are banned from the Tokyo Olympics following a state of emergency aimed at containing rising coronavirus infections in the capital.

Part of the sharp drop in long-term bond yields could also be attributed to investors quickly reversing bets that they would continue rising as the economy continued its sharp recovery.

Investors have swung between enthusiasm about an economic recovery and unease that the Fed and other central banks might roll back stimulus to cool pressure for prices to rise.

Minutes from the Fed’s June meeting showed officials are moving closer to reducing bond purchases, though most analysts don’t expect a reduction until late this year. At that meeting, policymakers said they planned to raise interest rates as soon as 2023, earlier than previously expected.

“It’s a little bit of a quiet period so any piece of news from the Fed is going to be met with strong reaction,” Kinahan said. “This is really a guessing game of what the Fed does next and how to get ahead of it.”

Railroad stocks were the biggest losers in the S&P 500 Thursday following a published report saying the Biden administration plans to sign an executive order next week directing regulators to take action against consolidation and anticompetitive pricing in the railroad and ocean shipping industries. The report, published by The Wall Street Journal, cited an unnamed source familiar with the situation. Kansas City Southern sank 7.9% for the biggest loss in the S&P 500. Norfolk Southern slid 7.2%, CSX fell 6.2% and Union Pacific closed 4.4% lower.

Investors will be turning their attentions to corporate earnings starting next week, when major banks like JPMorgan Chase, Goldman Sachs and Bank of America report their results. Banks tend to be a proxy for the overall economy, so investors will be analyzing the reports closely and listening to what banks say about the status of lending and spending as the recovery continues.

 

[bigdog]

Stocks close higher, capping a 3rd straight week of gains

Bond yields rebounded solidly and stock indexes notched new highs Friday as Wall Street closed out a choppy, holiday-shortened week of trading with the market’s third straight weekly gain.

The S&P 500 index rose 1.1% to an all-time high for the second time this week. The benchmark index more than made up for its losses a day earlier, giving it a 0.4% gain for the week. The gains were broad with about 90% of the stocks in the S&P 500 closing higher. Banks, technology companies and industrial stocks powered much of the rally.

The gains followed bursts of selling this week as bond yields fell sharply, a sign that investors might be turning cautious after a recent run of record highs for stocks. Bond yields also reversed course Friday. The yield on the 10-year Treasury note jumped to 1.36% from 1.28% a day earlier.

“Today was ’just let’s take a breath on all of this position-changing,” said Tom Martin, senior portfolio manager with Globalt Investments.

The S&P 500 index rose 48.73 points to 4,369.55. The Dow Jones Industrial Average gained 448.23 points, or 1.3%, to 34,870.16, also a record high. The Nasdaq composite added 142.13 points, or 1%, to 14,701.92, the tech-heavy index’s third all-time high this week.

Small-company stocks did much better than the rest of the market. The Russell 2000 index rose 48.33 points, or 2.2%, to 2,280.

The market rally comes as investors turn their attention toward company earnings, which kicks off next week, starting with major banks like JPMorgan Chase, Citigroup, Bank of America and Wells Fargo. Analysts expect another strong quarter for Wall Street, due to the improving economy and fewer Americans defaulting on loans compared with earlier in the pandemic.

Banks have been among the best-performing stocks in the S&P 500 this year. The KBW Bank Index of the 24 largest banks is up 27% this year alone, compared with the 16% gain of the S&P 500.

Investors continue to gauge the potential impact from COVID-19 variants, particularly the highly contagious delta variant, as governments in some countries reimpose lockdowns and travel restrictions. The problem has been particularly bad in Asia and Oceania, where countries that largely avoided the earlier outbreaks are now dealing with quickly growing caseloads of their own.

The rising number of coronavirus cases has been one of the reasons why investors have moved back into bonds in recent days. Thursday’s yield of 1.28% on the 10-year Treasury note was down sharply from its recent high of 1.75% in late March. Bond prices rise when yields fall.

Investors have also been closely watching the Federal Reserve to see how it reacts to the recovering economy and whether it will pull some of its support sooner than expected. In a report to Congress released Friday, the central bank said its low interest rate policies are providing “powerful support” for the economy as it recovers from the coronavirus pandemic. It indicated that it plans to continue that support until more economic progress is made.

United Airlines rose 2.9% after saying it will add nearly 150 flights this winter to warm-weather destinations in the U.S. and will also add flights to beach spots in Mexico, Central America and the Caribbean.

Stocks close higher, capping a 3rd straight week of gains

Stocks closed with solid gains on Wall Street Friday, ending a holiday-shortened week with their third straight weekly gain.

apnews.com

Stocks close higher, capping a 3rd straight week of gains

By DAMIAN J. TROISE and ALEX VEIGA

Bond yields rebounded solidly and stock indexes notched new highs Friday as Wall Street closed out a choppy, holiday-shortened week of trading with the market’s third straight weekly gain.

The S&P 500 index rose 1.1% to an all-time high for the second time this week. The benchmark index more than made up for its losses a day earlier, giving it a 0.4% gain for the week. The gains were broad with about 90% of the stocks in the S&P 500 closing higher. Banks, technology companies and industrial stocks powered much of the rally.

The gains followed bursts of selling this week as bond yields fell sharply, a sign that investors might be turning cautious after a recent run of record highs for stocks. Bond yields also reversed course Friday. The yield on the 10-year Treasury note jumped to 1.36% from 1.28% a day earlier.

“Today was ’just let’s take a breath on all of this position-changing,” said Tom Martin, senior portfolio manager with Globalt Investments.

The S&P 500 index rose 48.73 points to 4,369.55. The Dow Jones Industrial Average gained 448.23 points, or 1.3%, to 34,870.16, also a record high. The Nasdaq composite added 142.13 points, or 1%, to 14,701.92, the tech-heavy index’s third all-time high this week.

Small-company stocks did much better than the rest of the market. The Russell 2000 index rose 48.33 points, or 2.2%, to 2,280.

The market rally comes as investors turn their attention toward company earnings, which kicks off next week, starting with major banks like JPMorgan Chase, Citigroup, Bank of America and Wells Fargo. Analysts expect another strong quarter for Wall Street, due to the improving economy and fewer Americans defaulting on loans compared with earlier in the pandemic.

Banks have been among the best-performing stocks in the S&P 500 this year. The KBW Bank Index of the 24 largest banks is up 27% this year alone, compared with the 16% gain of the S&P 500.

Investors continue to gauge the potential impact from COVID-19 variants, particularly the highly contagious delta variant, as governments in some countries reimpose lockdowns and travel restrictions. The problem has been particularly bad in Asia and Oceania, where countries that largely avoided the earlier outbreaks are now dealing with quickly growing caseloads of their own.

The rising number of coronavirus cases has been one of the reasons why investors have moved back into bonds in recent days. Thursday’s yield of 1.28% on the 10-year Treasury note was down sharply from its recent high of 1.75% in late March. Bond prices rise when yields fall.

Investors have also been closely watching the Federal Reserve to see how it reacts to the recovering economy and whether it will pull some of its support sooner than expected. In a report to Congress released Friday, the central bank said its low interest rate policies are providing “powerful support” for the economy as it recovers from the coronavirus pandemic. It indicated that it plans to continue that support until more economic progress is made.

United Airlines rose 2.9% after saying it will add nearly 150 flights this winter to warm-weather destinations in the U.S. and will also add flights to beach spots in Mexico, Central America and the Caribbean.

Biogen slid 3% for the biggest drop in the S&P 500 after the acting head of the Food and Drug Administration called for a government investigation into highly unusual contacts between her agency’s drug reviewers and the drugmaker. The move is the latest fallout since the FDA approved Biogen’s controversial Alzheimer’s drug Aduhelm last month against the advice of the agency’s own panel of outside advisers.

Oil prices continued to march higher, with U.S. crude oil briefly touching $75 a barrel overnight. It rose 2.2% to $74.56 a barrel on Friday. Members of the OPEC oil cartel have yet to come to a consensus on whether to increase oil production or not, which has caused volatility in energy markets the past two weeks.

 

[bigdog]

ASX 200 expected to rebound​

The Australian share market is expected to start the week with a big gain. According to the latest SPI futures, the ASX 200 is poised to open the day 75 points or 1% higher.

This follows a very positive end to the week on Wall Street, which saw the Dow Jones rise 1.3%, the S&P 500 climb 1.1%, and the Nasdaq storm 1% higher.

 

[bigdog]

Stock indexes notch more records ahead of earnings reports

Banks led stocks to modest gains on Wall Street Monday, nudging the major stock indexes to more record highs ahead of a busy week of corporate earnings reports from big U.S. companies.

The S&P 500 gained 0.3% after bouncing back from an early stumble. The benchmark index, which has notched three straight weekly gains, hit a new high, as did the Dow Jones Industrial Average and Nasdaq composite. The indexes have managed multiple new highs despite choppy trading in recent weeks.

Banks, communication stocks and companies that rely on consumer spending accounted for much of the S&P 500′s broad gains. A mix of companies selling household goods fell. Energy stocks also closed lower, following a pullback in U.S. crude oil prices. Trading was muted overall, with a few stocks making big moves on little news.

Wall Street is focusing on a wave of earnings reports coming out this week. Investors will be closely watching what companies say about the future, now that the economy is shaking off the worst impact from the pandemic and companies have a clearer view ahead.

“The market has an expectation for the economy and interest rates and it’s a matter of whether company’s are going to acknowledge this or are they going to be cautious,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute. “The market would like to see some certainty.”

The S&P 500 index rose 15.08 points to 4,384.63. The Dow added 126.02 points, or 0.4%, to 34,996.18, while the Nasdaq gained 31.32 points, or 0.2%, to 14,733.24.

Small-company stocks lagged the rest of the market. The Russell 2000 index slipped 1.82 points, or 0.1%, to 2,281.83.

Treasury yields moved higher. The yield on the 10-year Treasury note rose to 1.37% from 1.35% late Friday.

L Brands rose 4.2% after the company’s board approved splitting the Victoria’s Secret and Bath & Body Works units into two separate companies. Virgin Galactic fell 17.3% after it followed up a successful spaceflight Sunday with plans to sell up to $500 million in stock.

Earnings season kicks off this week. The big Wall Street banks report their results starting Tuesday, beginning with JPMorgan Chase and Goldman Sachs. Also reporting this week will be Bank of America, Citigroup and Wells Fargo. A handful of other big companies report this week, including Delta Air Lines, PepsiCo and UnitedHealth Group.

Expectations are high this quarter for publicly traded companies. The pandemic is waning, and all of the United States effectively reopened again in the last quarter as vaccine availability became widespread. Investors will be looking to see not only what sort of profits these companies brought in the last three months, but also what their outlook is now that things are normalizing.

Corporate earnings are expected to be up 64% from a year earlier, according to FactSet. That would be the biggest year-over-year growth since 2009, when corporate profits started recovering from the Great Recession.

Ultimately investors are going to need these companies to deliver this season. Stocks have risen sharply in the past year on the backs of expectations that corporate profits would rebound once the pandemic ends. Without strong profits, it will be increasingly difficult for investors to justify these high stock prices and record market valuations.

ASX 200 expected to rise​

The Australian share market looks set to push higher again this morning. According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.3% higher.

This follows a positive start to the week on Wall Street, which saw the Dow Jones rise 0.36%, the S&P 500 climb 0.35%, and the Nasdaq push 0.21% higher.

Asian stocks follow Wall St higher ahead of earnings reports

Asian stocks have followed Wall Street higher ahead. of U.S. earnings reports that are expected to show strong profits for major banks.

apnews.com

Stock indexes notch more records ahead of earnings reports

By DAMIAN J. TROISE and ALEX VEIGA

Banks led stocks to modest gains on Wall Street Monday, nudging the major stock indexes to more record highs ahead of a busy week of corporate earnings reports from big U.S. companies.

The S&P 500 gained 0.3% after bouncing back from an early stumble. The benchmark index, which has notched three straight weekly gains, hit a new high, as did the Dow Jones Industrial Average and Nasdaq composite. The indexes have managed multiple new highs despite choppy trading in recent weeks.

Banks, communication stocks and companies that rely on consumer spending accounted for much of the S&P 500′s broad gains. A mix of companies selling household goods fell. Energy stocks also closed lower, following a pullback in U.S. crude oil prices. Trading was muted overall, with a few stocks making big moves on little news.

Wall Street is focusing on a wave of earnings reports coming out this week. Investors will be closely watching what companies say about the future, now that the economy is shaking off the worst impact from the pandemic and companies have a clearer view ahead.

“The market has an expectation for the economy and interest rates and it’s a matter of whether company’s are going to acknowledge this or are they going to be cautious,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute. “The market would like to see some certainty.”

The S&P 500 index rose 15.08 points to 4,384.63. The Dow added 126.02 points, or 0.4%, to 34,996.18, while the Nasdaq gained 31.32 points, or 0.2%, to 14,733.24.

Small-company stocks lagged the rest of the market. The Russell 2000 index slipped 1.82 points, or 0.1%, to 2,281.83.

Treasury yields moved higher. The yield on the 10-year Treasury note rose to 1.37% from 1.35% late Friday.

L Brands rose 4.2% after the company’s board approved splitting the Victoria’s Secret and Bath & Body Works units into two separate companies. Virgin Galactic fell 17.3% after it followed up a successful spaceflight Sunday with plans to sell up to $500 million in stock.

Earnings season kicks off this week. The big Wall Street banks report their results starting Tuesday, beginning with JPMorgan Chase and Goldman Sachs. Also reporting this week will be Bank of America, Citigroup and Wells Fargo. A handful of other big companies report this week, including Delta Air Lines, PepsiCo and UnitedHealth Group.

Expectations are high this quarter for publicly traded companies. The pandemic is waning, and all of the United States effectively reopened again in the last quarter as vaccine availability became widespread. Investors will be looking to see not only what sort of profits these companies brought in the last three months, but also what their outlook is now that things are normalizing.

Corporate earnings are expected to be up 64% from a year earlier, according to FactSet. That would be the biggest year-over-year growth since 2009, when corporate profits started recovering from the Great Recession.

Ultimately investors are going to need these companies to deliver this season. Stocks have risen sharply in the past year on the backs of expectations that corporate profits would rebound once the pandemic ends. Without strong profits, it will be increasingly difficult for investors to justify these high stock prices and record market valuations.

“This needs to be more of a confirmation process this earnings season,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute.

As investors keep an eye on corporate earnings, there are also lingering worries about the highly contagious delta coronavirus variant that is spreading quickly across much of the world. Places in the U.S. being hit particularly hard by the delta variant include the South, where vaccine hesitancy and resistance is more common. There are some worries that these areas may have to reimpose restrictions.

 

[bigdog]

Stocks ease below recent records as earnings reports roll in

Stocks gave up early gains and closed broadly lower Tuesday as investors weighed the latest quarterly earnings reports from big U.S. companies and new data pointing to rising inflation.

The S&P 500 fell 0.4%, with most of the companies in the benchmark index losing ground. Banks, industrial stocks and companies that rely on consumer spending accounted for a big share of the decline. Technology stocks bucked the trend, helping counter some of the broader slide. Small company stocks took some of the heaviest losses.

The pullback brought the major stock indexes slightly below the record highs they set a day earlier. Treasury yields rose.

Investors sized up mixed quarterly earnings reports from Goldman Sachs, JPMorgan Chase, PepsiCo and other big companies. They also got another snapshot of how inflation continues to show up in the economy as the a rapid spike in consumer demand and supply constraints translate into higher prices for consumer goods.

The latest report from the Labor Department showed yet another increase in consumer prices in June that surprised economists.

“You had the element of just incredible earnings reported for the most recent quarter, but in some of the commentary that came out there were some questions about, ’OK, what about cost pressures going forward?” said Alan McKnight, chief investment officer at Regions Asset Management. “Then you pair that with the inflation report today where we see another high print.”

The S&P 500 fell 15.42 points to 4,369.21. The Dow Jones Industrial Average dropped 107.39 points, or 0.3%, to 34,888.79. The tech-heavy Nasdaq slid 55.59 points, or 0.4%, to 14,677.65, while the Russell 2000 index of smaller companies lost 42.96 points, or 1.9%, to 2,238.86.

Inflation has been a lingering concern for the markets as investors try to gauge how it will impact everything from the economic recovery’s trajectory to what actions the Federal Reserve will take to tackle it.

The Labor Department said Tuesday that prices for U.S. consumers jumped in June by the most in 13 years, extending a run of higher inflation that has been raising concerns on Wall Street that the Fed might consider withdrawing its low-interest rate policies and scaling back its bond purchases earlier than expected.

Much of the increase in prices for goods, such as used cars, is mostly tied to a surge in demand and lack of supply. But prices for many items, like lumber and other raw materials, either is easing or will ease as suppliers continue to ramp up operations, said Jamie Cox, managing partner at Harris Financial Group.

“That’s a problem and it shows up in all kinds of places but it’s not going to be there forever,” Cox said.

Major companies opened up the latest round of corporate earnings with investors listening closely for clues about how companies have fared during the recovery and how they see the rest of the year unfolding.

Goldman Sachs fell 1.2% despite reporting the second-best quarterly profit in the investment bank’s history. JPMorgan Chase dropped 1.5% after giving investors a mixed report with solid profits but lower revenue as interest rates fell over the last three months.

“The financials have had that real tailwind of rates going higher,” McKnight said. “We’ve already priced that in. Now it’s almost a ‘show me’ story. Can you actually prove that you can deliver earnings at a much higher clip once we get back to a more normalized environment?”

Conagra Brands slid 5.4% for the biggest drop in the S&P 500 after the owner of Chef Boyardee’s and other packaged food brands gave investors a weak financial forecast, citing inflation pressure. Fastenal, maker of industrial and construction fasteners, also said it expects more pressure from inflation in product and transportation costs. The stock fell 1.6%.

Bond yields reversed course from early trading and rose to 1.42% from 1.36% late Monday. Overall, yields have been falling for months after a sharp spike earlier in the year.

The calmer bond market is partly signaling more confidence that rising inflation will likely be temporary and tied mostly to the economic recovery.

“That narrative is pretty well anchored and the bond market doesn’t fear the Fed tapering or raising rates,” Cox said.

Solid earnings did help some companies make gains. PepsiCo rose 2.3% after beating Wall Street’s second-quarter profit and revenue forecasts.

Boeing fell 4.2% after announcing production cuts for its large 787 airliner because of a new structural flaw in some planes that have been built but not delivered to airline customers.

ASX 200 futures pointing higher

The Australian share market looks set to edge higher on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 8 points or 0.1% higher this morning.

This is despite it being a poor night on Wall Street, which saw the Dow Jones fall 0.31%, the S&P 500 drop 0.35%, and the Nasdaq tumble 0.38% lower.

Asian shares mostly track Wall St drop on inflation worries

Asian shares are mostly lower, tracking a decline on Wall Street, as investors weigh the latest quarterly earnings reports from big U.S. companies and new data pointing to rising inflation.

apnews.com

Stocks ease below recent records as earnings reports roll in

By DAMIAN J. TROISE and ALEX VEIGA

Stocks gave up early gains and closed broadly lower Tuesday as investors weighed the latest quarterly earnings reports from big U.S. companies and new data pointing to rising inflation.

The S&P 500 fell 0.4%, with most of the companies in the benchmark index losing ground. Banks, industrial stocks and companies that rely on consumer spending accounted for a big share of the decline. Technology stocks bucked the trend, helping counter some of the broader slide. Small company stocks took some of the heaviest losses.

The pullback brought the major stock indexes slightly below the record highs they set a day earlier. Treasury yields rose.

Investors sized up mixed quarterly earnings reports from Goldman Sachs, JPMorgan Chase, PepsiCo and other big companies. They also got another snapshot of how inflation continues to show up in the economy as the a rapid spike in consumer demand and supply constraints translate into higher prices for consumer goods.

The latest report from the Labor Department showed yet another increase in consumer prices in June that surprised economists.

“You had the element of just incredible earnings reported for the most recent quarter, but in some of the commentary that came out there were some questions about, ’OK, what about cost pressures going forward?” said Alan McKnight, chief investment officer at Regions Asset Management. “Then you pair that with the inflation report today where we see another high print.”

The S&P 500 fell 15.42 points to 4,369.21. The Dow Jones Industrial Average dropped 107.39 points, or 0.3%, to 34,888.79. The tech-heavy Nasdaq slid 55.59 points, or 0.4%, to 14,677.65, while the Russell 2000 index of smaller companies lost 42.96 points, or 1.9%, to 2,238.86.

Inflation has been a lingering concern for the markets as investors try to gauge how it will impact everything from the economic recovery’s trajectory to what actions the Federal Reserve will take to tackle it.

The Labor Department said Tuesday that prices for U.S. consumers jumped in June by the most in 13 years, extending a run of higher inflation that has been raising concerns on Wall Street that the Fed might consider withdrawing its low-interest rate policies and scaling back its bond purchases earlier than expected.

Much of the increase in prices for goods, such as used cars, is mostly tied to a surge in demand and lack of supply. But prices for many items, like lumber and other raw materials, either is easing or will ease as suppliers continue to ramp up operations, said Jamie Cox, managing partner at Harris Financial Group.

“That’s a problem and it shows up in all kinds of places but it’s not going to be there forever,” Cox said.

Major companies opened up the latest round of corporate earnings with investors listening closely for clues about how companies have fared during the recovery and how they see the rest of the year unfolding.

Goldman Sachs fell 1.2% despite reporting the second-best quarterly profit in the investment bank’s history. JPMorgan Chase dropped 1.5% after giving investors a mixed report with solid profits but lower revenue as interest rates fell over the last three months.

“The financials have had that real tailwind of rates going higher,” McKnight said. “We’ve already priced that in. Now it’s almost a ‘show me’ story. Can you actually prove that you can deliver earnings at a much higher clip once we get back to a more normalized environment?”

Conagra Brands slid 5.4% for the biggest drop in the S&P 500 after the owner of Chef Boyardee’s and other packaged food brands gave investors a weak financial forecast, citing inflation pressure. Fastenal, maker of industrial and construction fasteners, also said it expects more pressure from inflation in product and transportation costs. The stock fell 1.6%.

Bond yields reversed course from early trading and rose to 1.42% from 1.36% late Monday. Overall, yields have been falling for months after a sharp spike earlier in the year.

The calmer bond market is partly signaling more confidence that rising inflation will likely be temporary and tied mostly to the economic recovery.

“That narrative is pretty well anchored and the bond market doesn’t fear the Fed tapering or raising rates,” Cox said.

Solid earnings did help some companies make gains. PepsiCo rose 2.3% after beating Wall Street’s second-quarter profit and revenue forecasts.

Boeing fell 4.2% after announcing production cuts for its large 787 airliner because of a new structural flaw in some planes that have been built but not delivered to airline customers.