NYSE Dow Jones finished today at:

[bigdog]

Stocks end a wobbly day mixed and just shy of record highs

Wall Street capped a wobbly day of trading with mixed results Wednesday, as a rally in technology stocks was kept in check by a slide in banks and energy companies.

The S&P 500 eked out a 0.1% gain after recovering from an early stumble and then losing much of its momentum by late afternoon. The benchmark index recovered some of its losses from a day earlier, but finished just short of its all-time high set on Monday.

The Nasdaq composite slipped 0.2% despite gains by several big tech companies including Apple. Small company stocks continued to lag the broader market.

Investors had a mixed reaction to a new batch of earnings news from banks, airlines and other companies, as well as the latest report showing another rise in inflation. They also kept an eye on the latest comments on inflation from the Federal Reserve chair, who reaffirmed the Fed’s view that the surge in costs across the economy is temporary.

“Investors right now are focusing on earnings because they are still buying what the Fed is saying about inflation (and) that it’s too early to start to raise rates and potentially slow a reopening economy,” said Sam Stovall, chief investment strategist at CFRA.

The S&P 500 rose 5.09 points to 4,374.30. The Dow Jones Industrial Average added 44.44 points, or 0.1%, to 34,993.23. The Nasdaq slipped 32.70 points to 14,644.95. The Russell 2000 index of smaller companies slid 36.51, or 1.6%, to 2,202.36.

Wall Street is closely watching the latest round of earnings for confirmation about the scale and pace of the economic recovery as people return to work, travel again and generally try to get back to some semblance of normal following the worst of the virus pandemic.

Banks mostly fell even after several of them turned in solid earnings reports. Citigroup gave up an early gain and fell 0.3%, despite reporting a more than five-fold rise in profits, helped by an improving economy that resulted in fewer bad loans on the bank’s balance sheet. Wells Fargo rose 4% for the biggest gain in the S&P 500 after reporting its most profitable quarter in two years.

Mixed results from Bank of America disappointed investors. It fell 2.5% after reporting solid profits, but weak revenue.

Airlines showed more signs of recovery as people begin to resume travel for work and leisure. American Airlines rose 3% after giving investors an encouraging update on its second-quarter financial picture.

Outside of earnings, investors are still closely watching measures of inflation to better gauge how it could impact the recovery. Inflation at the wholesale level jumped 1% in June, pushing price gains over the past 12 months up by a record 7.3%. The news on wholesale prices followed a report Tuesday that consumer prices increased in June by 0.9% and were up 5.4% over the past 12 months, the biggest 12-month gain in 13 years.

Energy companies had some of the biggest losses, partly due to a 2.8% drop in the price of benchmark U.S. crude oil. Occidental Petroleum fell 7.5% for the biggest drop in the S&P 500, while Cabot Oil & Gas slid 5%.

Technology stocks notched solid gains, led by a 2.4% increase in Apple following a published report that the consumer electronics giant planned to increase production of iPhones.

ASX 200 expected to edge lower​

The Australian share market looks set to give back some of its gains on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 11 points or 0.15% lower this morning.

This follows a mixed night of trade on Wall Street, which saw the Dow Jones rise 0.13%, the S&P 500 climb 0.12%, but the Nasdaq fall 0.22%

Asian shares trading mixed as China reports growth slowed

Asian shares are mixed, taking their cue from a wobbly day of trading on Wall Street. China reported its economy expanded at a 7.9% annual rate in the last quarter, down from 18.3% in January-March.

apnews.com

Stocks end a wobbly day mixed and just shy of record highs

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street capped a wobbly day of trading with mixed results Wednesday, as a rally in technology stocks was kept in check by a slide in banks and energy companies.

The S&P 500 eked out a 0.1% gain after recovering from an early stumble and then losing much of its momentum by late afternoon. The benchmark index recovered some of its losses from a day earlier, but finished just short of its all-time high set on Monday.

The Nasdaq composite slipped 0.2% despite gains by several big tech companies including Apple. Small company stocks continued to lag the broader market.

Investors had a mixed reaction to a new batch of earnings news from banks, airlines and other companies, as well as the latest report showing another rise in inflation. They also kept an eye on the latest comments on inflation from the Federal Reserve chair, who reaffirmed the Fed’s view that the surge in costs across the economy is temporary.

“Investors right now are focusing on earnings because they are still buying what the Fed is saying about inflation (and) that it’s too early to start to raise rates and potentially slow a reopening economy,” said Sam Stovall, chief investment strategist at CFRA.

The S&P 500 rose 5.09 points to 4,374.30. The Dow Jones Industrial Average added 44.44 points, or 0.1%, to 34,993.23. The Nasdaq slipped 32.70 points to 14,644.95. The Russell 2000 index of smaller companies slid 36.51, or 1.6%, to 2,202.36.

Wall Street is closely watching the latest round of earnings for confirmation about the scale and pace of the economic recovery as people return to work, travel again and generally try to get back to some semblance of normal following the worst of the virus pandemic.

Banks mostly fell even after several of them turned in solid earnings reports. Citigroup gave up an early gain and fell 0.3%, despite reporting a more than five-fold rise in profits, helped by an improving economy that resulted in fewer bad loans on the bank’s balance sheet. Wells Fargo rose 4% for the biggest gain in the S&P 500 after reporting its most profitable quarter in two years.

Mixed results from Bank of America disappointed investors. It fell 2.5% after reporting solid profits, but weak revenue.

Airlines showed more signs of recovery as people begin to resume travel for work and leisure. American Airlines rose 3% after giving investors an encouraging update on its second-quarter financial picture.

Outside of earnings, investors are still closely watching measures of inflation to better gauge how it could impact the recovery. Inflation at the wholesale level jumped 1% in June, pushing price gains over the past 12 months up by a record 7.3%. The news on wholesale prices followed a report Tuesday that consumer prices increased in June by 0.9% and were up 5.4% over the past 12 months, the biggest 12-month gain in 13 years.

Federal Reserve Chair Jerome Powell suggested in testimony to a House committee that inflation will likely remain elevated, but eventually moderate, reinforcing the central bank’s position that rising inflation is a temporary impact from the recovering economy. A key concern for investors has been how quickly the Fed will shift its interest rate policies in the face of rising inflation, but it has signaled there is no imminent change coming.

Long-term bond yields were mostly lower. The yield on the 10-year Treasury note fell to 1.34% from 1.41% late Tuesday.

“If the market were truly worried by the inflationary numbers then the 10-year note (yield) probably would have gone up,” Stovall said.

Energy companies had some of the biggest losses, partly due to a 2.8% drop in the price of benchmark U.S. crude oil. Occidental Petroleum fell 7.5% for the biggest drop in the S&P 500, while Cabot Oil & Gas slid 5%.

Technology stocks notched solid gains, led by a 2.4% increase in Apple following a published report that the consumer electronics giant planned to increase production of iPhones.

 

[bigdog]

Stocks close lower, falling below recent record highs

Major US stock indexes closed mostly lower Thursday, pulling back further from the record highs they reached at the start of the week.

The S&P 500 fell 0.3% after shedding an early gain. The benchmark index is now on pace for its first weekly loss in four weeks.

Technology and communications stocks, and companies that rely on consumer spending, accounted for much of the pullback, outweighing gains elsewhere in the market. Energy stocks fell following a broad slide in energy prices. Among the winners were financial stocks, including banks, which have been reporting mostly solid earnings.

Bond yields fell. The yield on the 10-year Treasury note slipped to 1.30% from 1.35% the day before.

Investors continued to focus on where the economy is headed as the pandemic wanes and on what companies have to say about how higher inflation is affecting their business.

“As long as inflation ends up being transitory, as the Fed believes, the economy is set to continue to do real well,” said Chris Gaffney, president of TIAA Bank World Markets. “The big risk is that inflation spikes and stays here.”

The S&P 500 fell 14.27 points to 4,360.03. The tech-heavy Nasdaq slid 101.82 points, or 0.7%, to 14,543.13. The Dow Jones Industrial Average bucked the trend and bounced back after being down much of the day. The blue-chip index gained 53.79 points, or 0.2%, to 34,987.02.

Small company stocks also fell. The Russell 2000 index lost 12.07 points, or 0.6%, to 2,190.29.

On Thursday, Federal Reserve Chair Jerome Powell delivered his second day of testimony before Congress. Powell reiterated that signs of inflation should ease or reverse over time, while acknowledging that the U.S. is in the midst of an unparalleled economic reopening on the heels of a pandemic-induced recession.

The government said Wednesday that inflation at the wholesale level jumped 1% in June, pushing price gains over the past 12 months up by a record 7.3%. That followed a report a day earlier showing consumer prices posted the biggest 12-month gain in 13 years.

Investors are also trying to determine how the economic recovery will play out for the rest of the year as the world tries to get back to normal with COVID-19 waning, but still lingering.

“There’s a big question mark around COVID-19 shifting from an acute to a chronic condition for the global market,” said Rod von Lipsey, managing director at UBS Private Wealth Management.

More companies released their latest quarterly earnings Thursday. Progressive fell 2.6% after the insurance company’s results fell far short of analysts’ forecasts. Morgan Stanley rose 0.2% after reporting a 10% rise in quarterly profits from a year earlier.

A larger bulk of companies will start reporting next week, when earnings season gets into full swing.

American International Group, better known as AIG, rose 3.6% after the insurance company reached a deal with Blackstone Group to help manage some of its life insurance assets.

ASX 200 expected to open flat​

The Australian share market looks set to end the week in a subdued fashion. According to the latest SPI futures, the ASX 200 is expected to open the day flat this morning.

This follows a mixed night on Wall Street which saw the Dow Jones rise 0.15%, the S&P 500 drop 0.33%, and the Nasdaq tumble 0.7% lower.

Asian shares track Wall St decline; BOJ policy unchanged

Shares are mostly lower in Asia after Wall Street benchmarks extended losses amid uncertainty over rising coronavirus cases and the risks to pandemic recoveries.

apnews.com

Stocks close lower, falling below recent record highs

By DAMIAN J. TROISE and ALEX VEIGA

Major US stock indexes closed mostly lower Thursday, pulling back further from the record highs they reached at the start of the week.

The S&P 500 fell 0.3% after shedding an early gain. The benchmark index is now on pace for its first weekly loss in four weeks.

Technology and communications stocks, and companies that rely on consumer spending, accounted for much of the pullback, outweighing gains elsewhere in the market. Energy stocks fell following a broad slide in energy prices. Among the winners were financial stocks, including banks, which have been reporting mostly solid earnings.

Bond yields fell. The yield on the 10-year Treasury note slipped to 1.30% from 1.35% the day before.

Investors continued to focus on where the economy is headed as the pandemic wanes and on what companies have to say about how higher inflation is affecting their business.

“As long as inflation ends up being transitory, as the Fed believes, the economy is set to continue to do real well,” said Chris Gaffney, president of TIAA Bank World Markets. “The big risk is that inflation spikes and stays here.”

The S&P 500 fell 14.27 points to 4,360.03. The tech-heavy Nasdaq slid 101.82 points, or 0.7%, to 14,543.13. The Dow Jones Industrial Average bucked the trend and bounced back after being down much of the day. The blue-chip index gained 53.79 points, or 0.2%, to 34,987.02.

Small company stocks also fell. The Russell 2000 index lost 12.07 points, or 0.6%, to 2,190.29.

On Thursday, Federal Reserve Chair Jerome Powell delivered his second day of testimony before Congress. Powell reiterated that signs of inflation should ease or reverse over time, while acknowledging that the U.S. is in the midst of an unparalleled economic reopening on the heels of a pandemic-induced recession.

The government said Wednesday that inflation at the wholesale level jumped 1% in June, pushing price gains over the past 12 months up by a record 7.3%. That followed a report a day earlier showing consumer prices posted the biggest 12-month gain in 13 years.

Investors are also trying to determine how the economic recovery will play out for the rest of the year as the world tries to get back to normal with COVID-19 waning, but still lingering.

“There’s a big question mark around COVID-19 shifting from an acute to a chronic condition for the global market,” said Rod von Lipsey, managing director at UBS Private Wealth Management.

While the virus and its variants aren’t likely to severely disrupt the economic recovery, expectations for a quick snapback have been stymied by persistent mutations, he said.

New data on applications for unemployment benefits signaled the labor market continues to improve. The Labor Department said Thursday that unemployment claims fell by 26,000 last week to 360,000, the lowest level since the pandemic struck last year.

More companies released their latest quarterly earnings Thursday. Progressive fell 2.6% after the insurance company’s results fell far short of analysts’ forecasts. Morgan Stanley rose 0.2% after reporting a 10% rise in quarterly profits from a year earlier.

A larger bulk of companies will start reporting next week, when earnings season gets into full swing.

American International Group, better known as AIG, rose 3.6% after the insurance company reached a deal with Blackstone Group to help manage some of its life insurance assets.

 

[bigdog]

Stocks end a wobbly week lower, breaking 3-week win streak

Stocks ended a wobbly week broadly lower, with a good part of Friday's loss attributable to weakness in big technology companies like Apple and Amazon.

apnews.com

Stocks end a wobbly week lower, breaking 3-week win streak

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street ended a milestone-setting week on a down note Friday, as stocks closed lower and the S&P 500 index posted its first weekly loss in four weeks.

The benchmark index fell 0.8%, with a good part of its pullback attributable to declines in big technology stocks, banks and companies that rely on consumer spending. Energy and industrial stocks also helped drag the market down, outweighing gains in health care and utilities companies.

Small-company stocks continued to badly lag the rest of the market. Treasury yields remained relatively low, a sign of caution among investors. The yield on the 10-year Treasury note held steady at 1.29%, well below the 1.75% it fetched in late March.

“Some of what’s been reflected in the bond market is starting to filter into the (stock) market just a little bit,” said Stephanie Roth, senior markets economist at J.P. Morgan Private Bank.

The S&P 500 fell 32.87 points to 4,327.16. It ended the week with a 1% loss. The Dow Jones Industrial Average dropped 299.17 points, or 0.9%, to 34,687.85. The tech-heavy Nasdaq composite slid 115.90 points, or 0.8%, to 14,427.24.

The Russell 2000 index of smaller companies fared worse than the broader market, shedding 27.06 points, or 1.2%, to 2,163.24. The index, which had outpaced the rest of the market for much of 2021, is now up just 9.5% for the year, well below the S&P 500′s year-to-date gain of 15.2%.

Moderna rose 10.3% after the drugmaker was added to the S&P 500 index, prompting a rush of buying from fund managers who need to keep a portfolio of stocks that replicate the index.

Trading was choppy this week after the three major stock indexes set all-time highs on Monday. The downbeat end to the week suggests investors are uncertain about how strongly the economic recovery will be in the second half of the year. Inflation is raging, many of the U.S. government’s pandemic relief efforts are fading and the Federal Reserve is starting to discuss reining in some of its support for the economy.

Investors are also anxious that the spread of new variants of the coronavirus could weaken economies around the world.

“Covid is probably one of the bigger uncertainties out there,” Roth said. “We do have to price in some chance that it becomes a bigger headwind than we think.”

On Thursday, Federal Reserve Chair Jerome Powell delivered his second day of testimony before Congress. Powell reiterated that signs of inflation should ease or reverse over time, while acknowledging that the U.S. is in the midst of an unparalleled economic reopening on the heels of a pandemic-induced recession.

Investors got a bit of positive economic news Friday. Americans spent more last month on clothing, electronics and dining out as the economy opened up and there were fewer pandemic-related restrictions.

U.S. retail sales rose a seasonally adjusted 0.6% in June from the month before, the U.S. Commerce Department said. The increase was a surprise to Wall Street analysts, who had expected sales to fall slightly last month.

Banks, airlines and other major companies kicked off the latest round of quarterly report cards this week. The reports have been mostly solid, though investors are still trying to gauge how corporations are faring during the recovery and how they might perform for the rest of the year.

The bulk of companies in the S&P 500 will report their results next week and the following week. Expectations are high, with profits in the S&P 500 expected to be up 64% from a year earlier, according to FactSet.

 

[bigdog]

ASX 200 expected to sink​

The Australian share market is expected to start the week in the red. According to the latest SPI futures, the ASX 200 is expected to open the day 37 points or 0.5% lower.

This follows a poor end to the week on Wall Street, which saw the Dow Jones fall 0.85%, the S&P 500 drop 0.75%, and the Nasdaq tumble 0.8%.

 

[bigdog]

RED DAYS EVERYWHERE

Asian shares fall on virus variant worries, Wall St retreat

Asian shares have fallen as worries grow that a faster-spreading variant of the coronavirus could upend the global economic recovery.

apnews.com

Stocks skid as virus fears shake markets; Dow falls 2.1%

By STAN CHOE, ALEX VEIGA and DAMIAN J. TROISE

Resurgent pandemic worries knocked stocks lower from Wall Street to Tokyo on Monday, fueled by fears that a faster-spreading variant of the virus may upend the economy’s strong recovery.

The S&P 500 fell 68.67, or 1.6%, to 4,258.49, after setting a record just a week earlier. In another sign of worry, the yield on the 10-year Treasury touched its lowest level in five months as investors scrambled for safer places to put their money.

The Dow Jones Industrial Average slumped 725.81, or 2.1%, to 33,962.04, while the Nasdaq composite lost 152.25, or 1.1%, to 14,274.98.

Airlines and other companies that would get hurt the most by potential COVID-19 restrictions took some of the heaviest losses, similar to the early days of the pandemic in February and March 2020. United Airlines lost 5.5%, mall owner Simon Property Group gave up 5.9%, and cruise operator Carnival fell 5.7%.

The selling also circled the world, with several European markets sinking roughly 2.5% and Asian indexes down a bit less. The price of benchmark U.S. crude, meanwhile, fell more than 7% after OPEC and allied nations agreed on Sunday to eventually allow for higher oil production this year.

Increased worries about the virus may seem strange to people in parts of the world where masks are coming off, or already have, thanks to COVID-19 vaccinations. But the World Health Organization says cases and deaths are climbing globally after a period of decline, spurred by the highly contagious delta variant. And given how tightly connected the global economy is, a hit anywhere can quickly affect the other side of the world.

Even in the U.S., where the vaccination rate is higher than in many other countries, people in Los Angeles County must once again wear masks indoors regardless of whether they’re vaccinated following spikes in cases, hospitalizations and deaths.

Across the country, the daily number of COVID cases has soared by nearly 20,000 over the last two weeks to about 32,000. The vaccine campaign has hit a wall, with the average number of daily inoculations sinking to the lowest levels since January, and cases are on the rise in all 50 states.

That’s why markets are concerned, even though reports show the economy is still recovering at a fantastically high rate and the general expectation is for it to deliver continued growth. Any worsening of virus trends threatens the high prices that stocks have achieved on expectations the economy will fulfill those lofty forecasts.

Financial markets have been showing signs of increased concerns for a while, but the U.S. stock market had remained largely resilient. The S&P 500 has had just two down weeks in the last eight, and the last time it had even a 5% pullback from a record high was in October.

Several analysts pointed to that backdrop of high prices and very calm movements for weeks while dissecting Monday’s drop.

“It’s a bit of an overreaction, but when you have a market that’s at record highs, that’s had the kind of run we’ve had, with virtually no pullback, it becomes extremely vulnerable to any sort of bad news,” said Randy Frederick, vice president of trading & derivatives at Charles Schwab. “It was just a matter of what that tipping point was, and it seems we finally reached that this morning” with worries about the delta variant.

He and other analysts are optimistic stocks can rebound quickly. Investors have been trained recently to see every dip in stocks as merely an opportunity to buy low.

Barry Bannister, chief equity strategist at Stifel, was more pessimistic. He says the stock market may be in the early stages for a drop of as much as 10% following its big run higher. The S&P 500 nearly doubled after hitting its bottom in March 2020.

“The valuations, they just got too frothy,” he said. “There was just so much optimism out there.”

The bond market has been louder and more persistent in its warnings. The yield on the 10-year Treasury tends to move with expectations for economic growth and for inflation, and it has been sinking since late March, when it was at roughly 1.75%. It fell to 1.20% Monday from 1.29% late Friday.

Analysts and professional investors say a long list of potential reasons is behind the sharp moves in the bond market, which is seen as more rational and sober than the stock market. But at the heart is the risk the economy may be set to slow sharply from its current, extremely high growth.

Besides the new variants of the coronavirus, other risks to the economy include fading pandemic relief efforts from the U.S. government and a Federal Reserve that looks set to begin paring back its assistance for markets later this year.

Monday’s selling pressure was widespread, with nearly 90% of the stocks in the S&P 500 lower. Even Big Tech stocks fell, with Apple down 2.7% and Microsoft 1.3% lower. Such stocks seemed nearly immune to virus fears during earlier downturns, rising with expectations for continued growth almost regardless of the economy’s strength.

Across the S&P 500, analysts are forecasting profit growth of nearly 70% for the second quarter from a year earlier. That would be the strongest growth since 2009, when the economy was climbing out of the Great Recession.

But just like worries are rising that the economy’s growth has already peaked, analysts are trying to handicap by how much growth rates will slow in upcoming quarters and years for corporate profits.

ASX 200 expected to sink again​

The Australian share market looks set to sink again this morning. According to the latest SPI futures, the ASX 200 is expected to open the day 70 points or 1% lower.

This follows a very poor start to the week on Wall Street, which saw the Dow Jones crash 2.09%, the S&P 500 drop 1.59%, and the Nasdaq fall 1.0.6%. The Dow had its worst day since October amid concerns rising COVID-19 cases could stifle global economic growth.

 

[bigdog]

Asian stocks mixed after Wall Street rebound

Asian stock markets are mixed after Wall Street rebounded and Japanese exports surged. Investors are trying to figure out how rising coronavirus infections will affect the global economy.

apnews.com

Stocks regain much of the ground they lost a day earlier

By DAMIAN J. TROISE and ALEX VEIGA

Stocks jumped on Wall Street Tuesday, making up much of the ground they lost a day earlier when worries flared about spreading cases of the more contagious variant of COVID-19.

The comeback was the latest rebound following a pullback as investors continue to try and assess how badly rising infections will hurt the economic recovery.

The S&P 500 rose 64.57 points, or 1.5%, to 4,323.06. The gain erased most of the benchmark index’s 1.6% loss on Monday, its biggest since May.

Airlines, cruise operators and other stocks that sank a day earlier were back in the winning column. American Airlines climbed 8.4% and Carnival gained 7.5%. Technology, financial, industrial and health care stocks also powered a big share of the benchmark index’s broad gains.

The Dow Jones Industrial Average rose 549.95 points, or 1.6%, to 34,511.99. The blue-chip index lost 725 points a day earlier. The Nasdaq composite gained 223.89 points, or 1.6%, to 14,498.88.

Small company stocks mounted the strongest comeback. The Russell 2000 index outpaced the other major indexes with a gain of 63.62 points, or 3%, to 2,194.30.

The sharp one-day rebound for the broader market shows yet again just how choppy trading has been as investors try to figure out the lingering virus’ impact on inflation, the broader economy and businesses ranging from airlines to banks. The broader market has managed to keep gaining ground even with all the churn and the benchmark S&P 500 notched several records over the last few weeks.

The spread of the more contagious delta variant of COVID-19 has become a worry spot for investors and policymakers. The Centers for Disease Control has said an estimated 83% of cases in the U.S. are tied to the delta variant of the virus. While tens of millions of Americans have gotten vaccinated, there remains a significant percentage of Americans who are either reluctant or outright hostile to the idea of being vaccinated.

Los Angeles Country last weekend reinstituted an indoor mask mandate as the region’s infection rate was climbing quickly yet again. Other parts of the country, like Southern Missouri, are flooded with COVID cases that are straining hospitals once more.

Bond yields fell sharply on Monday on fears that the strong economic recovery from the pandemic could be put at risk from additional lockdowns or coronavirus cases. The yield on the 10-year Treasury note dipped as low as 1.14% early Tuesday, but has reversed course and is up to 1.21% from 1.18% the day before. A week ago it was trading at 1.42%.

“We’re seeing a more dramatic extension of what we experienced over the last couple of weeks, which is really the market searching for a narrative,” said Yung-Yu Ma, chief investment strategist at BMO Wealth Management.

Investors are looking for whatever clues they can get to better gauge the continued trajectory of the economic recovery. Everything from comments from the Federal Reserve to outlooks from companies and economic data are being used to get a clearer picture of what the economy might look like throughout the rest of this year and into 2022.

Wall Street is also in the midst of earnings reporting season. IBM rose 1.5% after the company reported better than expected revenue and profits, helped by its cloud computing business. Hospital operator HCA Healthcare jumped 14.4% for the biggest gain in the S&P 500 after handily beating Wall Street’s second-quarter profit and revenue forecasts.

Outside of earnings, drug distributors made some big moves following reports that they are on the verge of $26 billion settlement over opioid lawsuits. AmerisourceBergen rose 3.5% and McKesson rose 3.2%.

Paint and coatings maker PPG Industries fell 4.4% for the biggest decline in the S&P 500 after its second-quarter profit fell short of analysts’ forecasts and it faces supply chain issues and higher raw materials prices.

ASX 200 futures pointing higher​

The Australian share market looks set to storm higher on Wednesday following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 55 points or 0.8% higher.

On Wall Street, the Dow Jones rose 1.62%, the S&P 500 climbed 1.52%, and the Nasdaq stormed 1.57% higher.

 

[bigdog]

Stocks climb on Wall St gains as company earnings roll in

Asian stock markets have followed Wall Street higher for a second day as optimism about a global economic recovery appears to be outweighing concern over rising coronavirus cases.

apnews.com

Stocks climb on Wall Street as more company earnings roll in

By ALEX VEIGA

Stocks closed higher on Wall Street for a second straight day Wednesday following a sharp drop at the beginning of the week.

The S&P 500 rose 0.8% and is now on pace for a weekly gain. Technology stocks, banks and companies that rely on consumer spending helped drive the benchmark index’s advance. Energy stocks also rose as the price of U.S. crude oil marched 4.3% higher. Utilities and real estate stocks were among the decliners.

The market’s swift rebound from Monday’s sharp sell-off reflects investors’ tug-of-war as they factor in signs of economic growth as the economy reopens, strong corporate earnings and a recovering job market against the potential risks of rising inflation and the more contagious delta variant of COVID-19.

The stock market has begun looking past the pandemic and toward what the recovery looks like, said Bill Northey, senior investment director at U.S. Bank Wealth Management.

“Now there is some degree of question: what is the pace, the degree of that economic recovery from here?” Northey said.

The S&P 500 gained 35.63 points to 4,358.69. The Dow Jones Industrial Average rose 286.01 points, or 0.8%, to 34,798, and the Nasdaq composite added 133.08 points, or 0.9%, to 14,631.95. The Dow and Nasdaq have also recouped their losses from Monday’s sell-off.

Traders continued to bid up small company stocks. The Russell 2000 index outpaced the other major indexes with a gain of 39.74 points, or 1.8%, to 2,234.04.

The S&P 500, a benchmark for many index funds, has managed to keep gaining ground and notched new highs over the last few weeks despite bouts of choppy trading. What’s helped push stocks higher the last two days is better-than-expected results from big corporations.

Summer is typically a slow time for Wall Street, with investors and traders taking vacations and holding steady until later in the year. The dominant thing that will drive the market, with the exception of big economic reports, will be how well companies do versus expectations.

Dow component Coca-Cola rose 1.3% Wednesday after the company raised its full-year forecast and reported better-than-expected results. Fast food chain Chipotle Mexican Grill jumped 11.5% for the biggest gain in the S&P 500 after the company also reported much better than expected results after the closing bell Tuesday.

Not all earnings were positive. Netflix fell 3.3% after reporting its worst slowdown in subscriber growth in eight years.

Earnings season will kick into high gear next week, when more than 100 members of the S&P 500 will report their quarter results. So far earnings season has been strong, with more than 80% of the S&P 500 beating analysts’ forecasts according to FactSet. That’s despite the already high expectations that Wall Street has had for corporations.

Bond yields continued to recover from their sharp fall earlier in the week. The yield on the 10-year Treasury note rose to 1.29%, up from 1.20% the day before. The 10-year note’s yield had fallen into the teens on Monday on concerns that the delta variant of the coronavirus might impact economic growth globally.

Among the big winners Wednesday, Morgan Stanley rose 3.6%, chipmaker Lam Research gained 5% and Occidental Petroleum vaulted 7.1%. Cruise operators, big losers in Monday’s market slide, rallied again. Norwegian Cruise Line vaulted 10.1%, Carnival gained 9.4% and Royal Caribbean rose 5.4%.

ASX 200 expected to rise again​

The Australian share market looks set to continue its ascent on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 70 points or 1% higher this morning.

This follows a strong night of trade on Wall Street, which saw the Dow Jones rise 0.8%, the S&P 500 climb 0.8%, and the Nasdaq jump 0.9%.

 

[bigdog]

Asian markets mixed after modest gains on Wall St

Asian markets are mixed after major indexes edged higher on Wall Street, preserving their gains for the week.

apnews.com

Indexes inch higher on Wall Street, preserving weekly gains

By DAMIAN J. TROISE and ALEX VEIGA

Stocks eked out modest gains on Wall Street Thursday, extending the market’s winning streak into a third day and keeping the major indexes on pace to end the week higher.

The S&P 500 shrugged off a midday slide and rose 0.2%. Banks, energy companies and industrial stocks weighed on the benchmark index, though solid gains by Apple, Microsoft and other big technology stocks helped nudge the index up.

Trading was mostly muted as investors reviewed the latest corporate earnings and a surprise increase in the number of Americans filing for unemployment benefits. Still, the gains preserve stock indexes’ comeback following a sharp sell-off to start the week.

“The market is trying to come to terms with the big sell-off on Monday,” said David Joy, chief market strategist at Ameriprise Financial. “We’ve had a rebound that allowed us to recapture a lot of it yesterday, and today it seems as though the market is searching for the next directional catalyst, and hasn’t really found one.”

Joy said the next big market-moving event could come as early as next Wednesday, when Federal Reserve policymakers hold their next two-day meeting. A key question: Will the central bank provide new hints about when it might begin to unwind some of the support that’s helped keep the economy going during the pandemic now that inflation is on the rise.

The S&P 500 index rose 8.79 points to 4,367.48. The Dow Jones Industrial Average added 25.35 points, or 0.1%, to 34,823.35. The Nasdaq composite gained 52.64 points, or 0.4%, to 14,684.60. All three indexes remain close to the all-time highs they set early last week.

Wall Street’s smallest companies lost ground. The Russell 2000 index fell 34.57 points, or 1.5%, to 2,199.48.

The Labor Department reported that unemployment claims rose last week to 419,000, the most in two months and more than economists were expecting. Economists characterized last week’s increase as most likely a blip caused by some one-time factors and partly a result of the inevitable bumpiness in the week-to-week data.

That said, investors have been nervous about how well the economy is recovering after the pandemic along with lingering concerns that the delta variant of COVID-19, which is spreading rapidly across the country, may cause businesses and cities to put restrictions into place yet again.

The 10-year Treasury note traded at a yield of 1.26% Thursday, down from 1.28% the day before. While the benchmark yield has recovered from its low yields earlier in the week, it continues to trade at relatively low levels given that the economy is in a recovery.

The lower yields weighed on banks, which can charge higher interest on loans when yields rise. JPMorgan Chase and Bank of America each fell 1.3%.

Big technology companies helped counter the dip from banks. Apple rose 1% and Microsoft rose 1.7%.

Homebuilders mostly fell after the National Association of Realtors said sales of previously occupied U.S. homes rose in June after a four-month pullback. The June data also showed the median U.S. home price hit a record high last month, reflecting an increase in sales of higher-end homes, while sales of properties under $150,000 declined.

The sharp rise in home prices, even with mortgage rates near historic lows, has stoked worries that many would-be buyers may be priced out of the market. Homebuilder Beazer Homes USA fell 2.9% and D.R. Horton slid 2%.

Company earnings reports are continuing to roll out. Texas Instruments fell 5.3% for the biggest drop in the S&P 500 after its results disappointed investors. The chip maker also gave a weak outlook for the second half of the year.

Union Pacific rose 1.1% after the railroad said its profits jumped 59% from a year earlier, helped by a 22% increase in cargo carried compared with a year earlier. The results also beat analysts’ expectations. Domino’s Pizza jumped 14.6% for the biggest gain in the S&P 500 after its results also surpassed estimates.

Intel was down 2.6% in after-market trading following the release of its quarterly results. Twitter also reported its results after the market closed. The social media portal was up 3.7% in extended trading.

ASX 200 futures pointing lower​

The Australian share market looks to have run out of steam and is set to end the week in a subdued fashion. According to the latest SPI futures, the ASX 200 is expected to open the day 23 points or 0.3% lower this morning.

This is despite Wall Street performing positively, with the Dow Jones rising 0.07%, the S&P 500 climbing 0.2%, and the Nasdaq pushing 0.36% higher.

 

[bigdog]

https://apnews.com/article/business...cial-markets-677af28bd446b9f532b2f0d5aa4a8810

Wall Street rallies to record-breaking end of turbulent week

By DAMIAN J. TROISE and STAN CHOE

Stocks rallied to records on Wall Street Friday, and the Dow Jones Industrial Average closed above the 35,000 level for the first time, as the market continued to roar back from its short-lived swoon at the start of the week.

The S&P 500 index climbed 44.31, or 1%, to 4,411.79 to top its prior all-time high, set early last week. The Dow rose 238.20, or 0.7%, to 35,061.55, and the Nasdaq composite gained 152.39, or 1%, to 14,836.99.

All three indexes finished with gains of better than 1% for the week, completely brushing aside the sharp downturn that trimmed 1.6% off the S&P 500 on Monday.

That drop was caused by worries about a potentially sharp slowdown in the economy due to a fast-spreading variant of the coronavirus. But the S&P 500 has since climbed four straight days, as big companies reported better profits than expected and as investors once again saw any dip in stocks as merely a chance to buy low.

The economy continues to recover at a torrid pace, with the question being how much growth will slow in upcoming months and years. A preliminary report from IHS Markit on Friday indicated U.S. manufacturing growth may be unexpectedly accelerating in July, though growth in services industries looks to be slowing more than economists expected.

The yield on the 10-year Treasury gave up some of its gain following the release of the report, but it still rose to 1.27% from 1.26% late Thursday. For months, it has been sending a concerning alarm about the economy as it dropped from a perch of roughly 1.75% in late March. But outside of Monday’s sudden swoon, the S&P 500 has mostly continued to plod higher.

Staffing provider Robert Half International jumped 7.4% for one of Friday’s biggest gains in the S&P 500 after it reported revenue and profit for the latest quarter that topped Wall Street’s expectations. It said it’s seeing a broad-based, global acceleration in demand for its services.

It led a widespread rally across the market, where more than 80% of the stocks in the S&P 500 rose. Communications stocks led the way after Twitter reported results that blew past Wall Street’s forecasts on growing advertising demand. It climbed 3%. Snap, the parent company of social media app Snapchat, soared 23.8% after reporting results that were much better than expected.

Such surprises have become the norm this reporting season. With roughly a quarter of all the profit reports in from S&P 500 companies, nearly 90% have topped Wall Street’s already high expectations for the spring.

Companies in the index are on pace to report roughly 74% growth for earnings in the second quarter from a year earlier, according to FactSet. That would be the strongest growth since the economy was exploding out of the Great Recession at the end of 2009.

Concerns have been rising about inflation, which has burst higher recently. But companies have neverthless been able to maintain their profits, often by raising their own prices.

S&P 500 businesses appear on track to say they made $124 in profit for every $1,000 in sales, according to FactSet. That would be a slight dip from $128 during the first three months of the year, but it would remain comfortably above the average of $108 over the last five years.

American Express rose 1.3% following its quarterly profit report, which showed a surge in revenue amid increased customer spending at restaurants, shops and entertainment venues.

On the losing end was Intel, which fell despite also reporting solid second-quarter earnings. It dropped 5.3%.

Boston Beer Co., which brews Samuel Adams, sank 26% amid worries about fizzling sales of hard seltzer.

As Wall Street looks through 2021 and into next year, a key concern remains the potential for “stagflation,” said Jay Hatfield, CEO of Infrastructure Capital Advisors. That’s when inflation continues rising while economic growth stagnates. Most analysts expect growth to continue moderating as the pandemic fades and the U.S. government and Federal Reserve ease their support.

“How do we get from hypergrowth to stagflation, how do you price that in?” he said. “That’s a key overhang.”

In European stock markets, indexes also rallied by roughly 1%. Asian stock markets were mixed, with Hong Kong’s Hang Seng down 1.4% and South Korea’s Kospi up 0.1%.

 

[bigdog]

ASX 200 expected to rise​

The Australian share market is expected to start the week in a positive fashion. According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.3% higher.

This follows a strong end to the week on Wall Street, which saw the Dow Jones rise 0.7%, the S&P 500 climb 1%, and the Nasdaq storm 1.05% higher. The latte could bode well for Australian tech shares today.

 

[bigdog]

Asian stock markets advance after Wall St rises to record

Asian stock markets are mostly higher as investors look ahead to a Federal Reserve report for an update on when U.S. stimulus might start winding down.

apnews.com

Stocks shake off a wobbly start and finish slightly higher

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street capped a wobbly day for stocks with modest gains Monday, nudging the major indexes further into record territory.

The S&P 500 shrugged off an early slide and gained 0.2%. Consumer-oriented companies, banks and energy and communications stocks helped lift the market. Those gains were kept in check by a pullback in health care and technology companies. Treasury yields mostly rose.

The modest gains follow a turbulent week for the market. A week ago, stocks fell sharply amid worries that fast-spreading variants of the coronavirus could threaten the economic recovery. But the swoon was short-lived, and the major stock indexes rallied to record highs on Friday.

Trading was more muted Monday, as investors monitored a steady flow of corporate earnings and looked ahead to Wednesday, when the Federal Reserve is due to deliver an update on the economy and its interest rate policy.

Traders will be listening for clues as to when the central bank might start winding down its extraordinary support measures for the economy and how concerned it is about inflation.

“The mood still revolves around inflation and whether it is transitory or not,” said Keith Buchanan, senior portfolio manager at Globalt Investments.

The S&P 500 rose 10.51 points to 4,422.30. The Dow Jones Industrial Average gained 82.76 points, or 0.2%, to 35,144.31. The Nasdaq composite added 3.72 points, or less than 0.1%, to 14,840.71.

Smaller companies fared slightly better than the broader market. The Russell 2000 index rose 7.27 points, or 0.3%, to 2,216.92.

Cruise lines, hotels and retailers were among the winners. Carnival rose 5.5%, Caesars Entertainment added 3.3% and Gap rose 3%. Among stocks that lost ground: Drugmaker Moderna slid 3.7% and chipmaker Nvidia fell 1.4%.

Treasury yields mostly rose. The yield on the 10-year Treasury rose to 1.30% from 1.28% late Friday. The yield, which is a benchmark for interest rates on mortgages and other consumer loans, has been mostly falling amid increasing unease over the economy since climbing to about 1.75% in late March.

Chinese technology companies slipped as China increases restrictions on them. China’s industry ministry announced a 6-month campaign to clean up what it says are serious problems with internet apps violating consumer rights, cyber security and “disturbing market order.” Internet giant Tencent’s U.S.-listed shares slid 10% following orders by regulators to end exclusive contracts with music copyright holders.

The announcement pulled most indexes in Asia lower. Hong Kong’s Hang Seng sank 4.1%, marking its biggest drop in more than a year, and the Shanghai Composite index fell 2.3%.

A wide range of companies reported earnings. While the results have been mostly solid, Wall Street’s reaction has been mixed. Elevator maker Otis rose just 0.6%, despite reporting solid financial results, while toymaker Hasbro jumped 12.2% for the biggest gain in the S&P 500 after handily beating analysts’ profit forecasts.

Investors are awaiting earnings reports from several large companies this week. Google’s parent company, Alphabet, will report earnings Tuesday, along with Apple and Microsoft. Pfizer and Boeing report their results on Wednesday.

Electric vehicle company Lucid Motors, now dubbed Lucid Group, rose 10.6% in its public debut after being bought by blank-check company Churchill Capital Corp.

The price of Bitcoin rose about 9% to $37,500, according to Coindesk. Amazon is reportedly considering accepting it as payment and considering its own cryptocurrency for purchases.

ASX 200 expected to rise​

The Australian share market looks set to push higher on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.30% higher at the open.

This follows a positive night of trade on Wall Street, which saw the Dow Jones rise 0.24%, the S&P 500 climb 0.24%, and the Nasdaq edge slightly higher. The S&P 500 hit a new record high overnight.

 

[bigdog]

Asian stocks sink after Wall St pulls back from record

Asian stock markets are lower after Wall Street pulled back from a record. Investors looked ahead to a Federal Reserve report for signs of when U.S. stimulus might be withdrawn.

apnews.com

Weakness in tech stocks pulls Wall Street back from records

By DAMIAN J. TROISE and ALEX VEIGA

A slide in technology and consumer-oriented companies helped pull stocks lower on Wall Street Tuesday, dragging the major indexes below the record highs they set a day earlier.

The S&P 500 fell 0.5%, snapping a five-day winning streak. The selling was most pronounced in technology and communication stocks, and in companies that rely on consumer spending. Traders shifted money into sectors seen as less risky, including utilities, health care and in companies that make household and personal goods.

Investors also bought bonds, sending the yield on the 10-year Treasury note down to 1.24% from 1.27% late Monday. Long-term yields have eased off from their sharp rise earlier in the year, but Wall Street is still worried about inflation.

Markets have been choppy as investors try to get a clearer picture of how well the economy is recovering from the pandemic and how the Federal Reserve will eventually ease up on its support for the economy. The central bank is meeting Tuesday and will release its latest statement on Wednesday.

“The market is trying to find firmer footing on what to expect going forward,” said Alan McKnight, chief investment officer at Regions Asset Management.

The S&P 500 index fell 20.84 points to 4,401.46. The Dow Jones Industrial Average dropped 85.79 points, or 0.2%, to 35,058.52. The tech-heavy Nasdaq lost 180.14 points, or 1.2%, to 14,660.58.

Small company stocks also fell. The Russell 2000 index gave up 25.09 points, or 1.1%, to 2,191.83.

Part of the uncertainty hovering over markets has to do with COVID-19 and its potential impact on the recovery. Case numbers and hospitalizations have been ticking higher in certain parts of the U.S. and world as the Delta variant spreads.

“The pace of growth is being questioned because of COVID-19 variants,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “There is some concern that the pace may not be as robust.”

Investors also were monitoring a regulatory clampdown by China on various companies. Chinese stocks fell again Tuesday after Beijing announced enforcement measures on technology and real estate and was reported to be considering restrictions on for-profit education ventures. Authorities say they need to protect public safety and financial stability, restrain surging housing costs and promote social welfare.

“In trying to understand the delta variant, what’s going on in China, is it a fundamental shift in the economic outlook, in the earnings outlook over the rest of the year and the beginning of the year?” McKnight said. ”We don’t think that it is, but we acknowledge that it creates volatility, particularly when you’ve already had a large run this year.”

Technology companies and a mix of consumer-oriented companies were among the biggest losers Tuesday.

Wednesday’s report from the Fed could give investors more clues about the central bank’s level of concern about inflation and when it might start reducing its monthly bond purchases that have helped keep interest rates low.

Many companies that have reported quarterly results in recent weeks have cited he impact of inflation on their costs. On Tuesday, General Electric and Stanley Black & Decker mentioned higher costs.

“One of the big questions that the market is going to be answering over the next couple of months: Are (companies) able to actually implement price increases to cover the increase in costs?” McKnight said.

Investors considered a mixed bag of earnings from several large companies. UPS slumped 7% after its revenue for the latest quarter fell short of analysts’ forecasts. Wall Street brushed off seemingly solid results from several other companies. Tesla fell 2% and industrial conglomerate 3M fell 0.6%, despite reporting solid financial results.

The Conference Board reported that consumer confidence edged higher in July, marking the sixth straight month that the measurement has risen. The International Monetary Fund said it expects the global economy to expand 6% this year, a dramatic bounce-back from the 3.2% contraction in the pandemic year of 2020.

The broad declines in the U.S. followed more drops in China. Hong Kong’s Hang Seng lost 4.2% and the Shanghai Composite lost 2.5%.

ASX 200 futures pointing lower​

The Australian share market is poised give back some of its gains on Wednesday. This follows a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 21 points or 0.3% lower this morning.

On Wall Street, the Dow Jones fell 0.24%, the S&P 500 dropped 0.47%, and the Nasdaq tumbled 1.21%

 

[bigdog]

Asia stocks advance, tech giants rally after Fed report

Asian stocks are mostly rising after the Federal Reserve kept its accommodative monetary policies and signaled that economic recovery was on track.

apnews.com

Stocks end mixed after Fed notes progress on the economy

By DAMIAN J. TROISE and ALEX VEIGA

Stock indexes capped a wobbly day of trading on Wall Street with mixed results Wednesday after the Federal Reserve said it was seeing improvement in the economy, but not enough to start dialing down its support measures.

The S&P 500 slipped less than 0.1% after giving up a brief afternoon gain. The Dow Jones Industrial Average fell 0.4%, while the Nasdaq composite rose 0.7%. The yield on the 10-year Treasury note held steady at 1.23%.

A slide in technology stocks, makers of household and personal products, and companies that rely on consumer spending weighed on the S&P 500. The pullback was kept in check by gains in communications, health care and energy stocks.

Following the Fed’s latest two-day policy meeting, the central bank said it was leaving its key interest rate unchanged and would continue to buy billions in bonds every month.

The Fed also noted that vaccinations were helping the economy, but it dropped a sentence in its statement that it had included after its previous meeting that said those vaccinations have reduced the spread of COVID-19. That was the only reference to the delta variant that has caused a spike in COVID cases in several hotspots in the United States and many other countries.

“The market really was not expecting any surprises, and what it ended up getting, as anticipated, was that the Fed would say that the economy continues to recover, but not strongly enough to alter current monetary policy,” said Sam Stovall, chief investment strategist at CFRA.

The S&P 500 slipped 0.82 points to 4,400.64. The benchmark index remains within 0.5% of the all-time high it set on Monday. The Dow lost 127.59 points to 34,930.93, while the Nasdaq rose 102.01 points to 14,762.58.

Small-company stocks fared better than the broader market, driving the Russell 2000 index to a gain of 33.12 points, or 1.5%, to 2,224.95. The index had been down 0.1% before the Fed’s afternoon announcement.

“Maybe the worry was that the Fed would sound more hawkish and raise rates, which would have more of an adverse impact on small-caps, which have to borrow more than large-caps,” Stovall said.

The Fed has kept its benchmark short-term rate pegged at nearly zero since March 2020, when the pandemic tore through the economy. The central bank has also been buying $120 billion in Treasury and mortgage bonds each month in a bid to spur more borrowing and spending.

Analysts expect the Fed to move toward reducing the bond purchases that have helped keep interest rates low through the pandemic. The big question for investors is the timing and pace of such a pullback. The market is also weighing concerns about the pace of the economic recovery, which could be stymied by the renewed spread of COVID-19.

“The pace is going to be slower than some folks predicted because of the delta variant,” said Greg Bassuk, founder and CEO of AXS Investments. “We believe that we’re going to continue to see a greater opening recovery, but with a lot more volatility.”

There are also lingering concerns about whether inflation will continue to rise, depending on the economic recovery and supply chain problems that have made some goods more expensive.

Beyond the Fed, investors continued to review the latest batch of quarterly earnings reports.

Google’s parent company Alphabet was a standout, jumping 3.2% after reporting a profit surge last quarter. Pfizer also rose 3.2% after its profit and revenue surged on strong sales of its COVID-19 vaccine and other medicines. The drugmaker also raised its sales and profit forecasts for the year. Boeing jumped 4.2% after the airplane maker reported a surprise quarterly profit, its first since 2019.

Solid earnings weren’t enough to lift stocks for other companies. McDonald’s fell 1.9%, despite reporting a surge in revenue and beating analysts’ forecasts as dining rooms reopened. Facebook rose 1.5%, but lost that gain and more in extended trading despite reporting after the market closed that its second-quarter earnings doubled thanks to a massive increase in advertising revenue.

Investors will be focusing much of their attention on what companies are forecasting for the rest of the year. Those forecasts, along with a mix of economic reports on gross domestic product and personal income and spending, should give investors a clearer picture of the economic recovery’s trajectory as they head into August, Bassuk said.

Markets made gains in Europe and were mostly lower in Asia.

ASX 200 expected to rebound​

The Australian share market looks set to bounce back on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 18 points or 0.25% higher this morning.

This follows a mixed night of trade on Wall Street which saw the Dow Jones fall 0.36%, the S&P 500 trade flat, and the Nasdaq jump 0.7%.

 

[bigdog]

Asian shares lower after Wall St rebound on US growth data

Asian shares and U.S. futures are lower after stocks pushed broadly higher on Wall Street. Japan reported relatively strong economic data for the previous quarter, before the government began tightening coronavirus restrictions as cases surged.

apnews.com

Wall Street pushes broadly higher after two days of losses

By DAMIAN J. TROISE and ALEX VEIGA

Stocks on Wall Street bounced back from a two-day slide Thursday, placing the S&P 500 on pace for its second straight weekly gain.

The S&P 500 index rose 0.4%, powered by broad gains. About 77% of the stocks in the benchmark index closed higher. Technology stocks and banks made some of the biggest gains, along with a wide range of retailers and other consumer-oriented companies. Only communication services stocks and real estate companies fell.

The modest rally came as the latest government data showed continued economic growth and investors reviewed another batch of mostly positive corporate earnings reports.

Online brokerage Robinhood made an underwhelming debut on the Nasdaq, closing at $34.82, or 8.4% below its offering price of $38, which was the low end of its expected range.

The company has drawn millions of new investors to Wall Street with commission-free trades, but has also attracted controversy. It and other online brokerages rattled Wall Street earlier this year when investors used the platforms to drive up prices to seemingly unreasonable levels for “meme” stocks like GameStop.

The S&P 500 gained 18.51 points to 4,419.15. It is now less than 0.1% below the all-time high it hit on Monday. The Dow Jones Industrial Average rose 153.60 points, or 0.4%, to 35,084.53, while the Nasdaq added 15.68 points, or 0.1%, to 14,778.26. The Dow and Nasdaq also hovered just below their record highs set on Monday.

The yield on the 10-year Treasury note remained relatively stable. It edged higher to 1.27% from 1.26% late Wednesday.

A government report helped ease some concerns on Wall Street about the pace of the economic recovery. The Commerce Department said the U.S. economy grew at a solid 6.5% annual rate last quarter. The total size of the economy has now surpassed its pre-pandemic level. It also revised its figures for 2020, showing that the economy contracted by a slightly smaller amount than previously reported.

The latest GDP figure fell short of economists forecasts for 8.5% growth, but investors have largely brushed off the wide miss.

“That’s still an eyepopping number,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors, on the latest GDP figure.

Analysts have been expecting the economic recovery to slow from its breakneck pace earlier this year, but to remain steady as businesses reopen and people return to many of the things they were doing before the pandemic.

“Eventually the growth rates will slow, but it’s important to understand that just because the rate is slowing doesn’t mean we’re entering into a contraction,” Horneman said.

Investors also got encouraging news on the broader employment picture, which has tended to lag the rest of the recovery. Claims for unemployment benefits dropped by 24,000 to 400,000 last week, the Labor Department reported.

The upbeat economic data follows the Federal Reserve’s statement on Wednesday signaling that it will keep its support for the economy intact.

Yum Brands, which owns KFC and Taco Bell, rose 6.3% after strong customer demand helped it handily beat Wall Street’s profit and revenue forecasts. Ford rose 3.8% after the automaker reported a surprise second-quarter profit on sales of its pickup trucks and SUVs.

Facebook fell 4% and weighed down the S&P 500′s communications sector after it warned of slower growth through the rest of the year.

Amazon skidded 6.2% in extended trading after the internet retail giant reported mixed results for the second quarter after the market closed.

ASX 200 futures pointing slightly higher​

The Australian share market could end the week on a mildly positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 4 points or 0.05% higher this morning.

This follows a positive night on Wall Street, which saw the Dow Jones rise 0.44%, the S&P 500 climb 0.42%, and the Nasdaq edge 0.11% higher.

 

[bigdog]

SEA OF RED FRIDAY

https://apnews.com/article/business...cial-markets-64f2dcec85211ce4d71dba02937a022a

Wall Street stumbles at the close of another strong month

By DAMIAN J. TROISE and STAN CHOE

U.S. stock indexes fell Friday, with much of the downward weight coming from a stumble for high-flying Amazon.

The S&P 500 lost 23.89, or 0.5%, to 4,395.26. But it nevertheless wrapped up its sixth straight month of gains, its longest such streak since 2018, and it’s still within 0.6% of its record high set on Monday.

The Dow Jones Industrial Average fell 149.06, or 0.4%, to 34,935.47, and the Nasdaq composite dropped 105.59, or 0.7%, to 14,672.68.

Trading was mixed on Friday, with close to two stocks falling in the S&P 500 for every one that rose. Losses for banks and energy producers offset some modest gains for real-estate companies and raw-material producers.

Amazon dropped 7.6% after it reported sales growth for its latest quarter that, while still enviable at 27%, wasn’t as strong as analysts expected. It also gave a forecast for revenue in the current quarter that fell short of Wall Street’s.

Because Amazon is one of the biggest companies in the S&P 500, its stock movements carry extra weight on the index. It alone accounted for more than half of Friday’s drop for the S&P 500.

Amazon was one of the biggest winners of the pandemic, which forced people to hunker down and shop from home. But people have been returning to stores and other pre-pandemic activities.

Digital pinboard and shopping tool company Pinterest ran into a similar issue during its latest quarter. Its stock slumped 18.2% after it reported slower growth than expected for its number of users.

It’s been a busy week for earnings reports from companies, and roughly three out of five in the S&P 500 have now detailed their performance for the spring, according to FactSet. Profits so far have been blowing past the already lofty expectations Wall Street had set.

Perhaps even more important is how companies are doing it, said Sal Bruno, chief investment officer at IndexIQ.

“What’s really encouraging is that the sales surprise is trending positive,” he said. “That tells me that companies are growing, which goes along with the economic reopening.”

So far, 88% of companies have reported even bigger sales for the latest quarter than analysts expected, according to FactSet. That’s more than usual.

The strong earnings reports have helped to support the stock market, even as other worries have made trading more unsteady recently. Concerns are rising about whether a new variant of the coronavirus may dent the economy, while a crackdown by Beijing on Chinese tech companies has helped unsettle investors around the world. High inflation also remains a risk hanging over the market.

Treasury yields pulled lower following a spate of reports on the economy and inflation.

One showed that spending by consumers, which makes up the bulk of the economy, strengthened by more than economists expected in June. A key measure of inflation also accelerated to its fastest pace since 1991, but it wasn’t quite as high as economists thought it would be.

Incomes unexpectedly rose for Americans in June, while their expectations for inflation were slightly lower than economists had forecast.

The yield on the 10-year Treasury fell to 1.23% from 1.27% late Thursday.

The market could be in for more choppy trading through August, Bruno said.

“The fundamental outlook is generally pretty strong going forward, even if there is some shorter term weakness and volatility,” he said.

 

[bigdog]

ASX 200 poised to bounce back​

The Australian share market is expected to bounce back on Monday. According to the latest SPI futures, the ASX 200 is expected to open the day 37 points or 0.5% higher this morning.

This is despite a poor end to the week on Wall Street, which saw the Dow Jones fall 0.4%, the S&P 500 drop 0.55%, and the Nasdaq tumble 0.7% lower.

 

[bigdog]

Asian markets lower on virus worries after Wall Street slips

Asian stock markets have followed Wall Street lower as jitters about the fast spread of the coronavirus’s delta variant dented enthusiasm about strong corporate profits.

apnews.com

Stocks end mixed after starting August off on a choppy note

By DAMIAN J. TROISE and ALEX VEIGA

Stocks gave back some of their recent gains Monday after a day of choppy trading on Wall Street led the major indexes to a mixed finish.

The S&P 500 slipped 0.2% in the final hour of trading after holding a slight gain for much of the afternoon. The benchmark index is coming off a weekly loss, though it ended July higher, its sixth straight month of gains. It remains within 0.8% of the all-time high it set a week ago.

A slide in technology, industrial, raw materials and communication companies weighed on the market. Energy stocks also fell in tandem with crude oil prices. Gains by health care stocks, utilities and a variety of retailers and other companies that rely on direct consumer spending helped keep the losses in check.

Demand for U.S. bonds rose, pushing their prices higher and sending their yields lower. In another sign of caution among traders, small company stocks fell more than the rest of the market.

While investors are feeling bullish about strong company earnings reports, with more expected this week, they’re also nervous about the spread of the more contagious delta variant of the coronavirus and how it might impact the economic recovery.

“There’s hope the delta variant’s resurgence is going to peak soon, but that’s not clear,” said Rob Haworth, senior investment strategy director at U.S. Bank Wealth Management. “That’s weighing on the market a little bit.”

The S&P 500 fell 8.10 points to 4,387.16. The Dow Jones Industrial Average dropped 97.31 points, or 0.3%, to 34,838.16, while the Nasdaq composite added 8.39 points, or 0.1%, to 14,681.07. The Russell 2000 index of smaller companies lost 10.75 points, or 0.5%, to 2,215.50.

Bond yields fell again. The yield on the 10-year Treasury note slipped to 1.17% from 1.24% on Friday. Crude oil prices closed 3.6% lower.

Investors are still closely watching any developments with the virus pandemic and how mutations and variants might impact economic growth amid a surge in new infections that’s driving hospital caseloads in some places to their highest levels since the outbreak began. Still, analysts don’t expect a big pullback in consumer or economic activity.

“The impact on the economy will be considerably more limited than it was in previous waves,” said Gary Schlossberg, global strategist at Wells Fargo Investment Institute.

This week will be busy for investors. Roughly 150 members of the S&P 500 will report their results, and the July jobs report comes out on Friday.

Companies that will report this week include DuPont, Eli Lilly, CVS, Kraft Heinz, General Motors and Humana, among many others.

So far earnings season has been strong for corporate America, with the average S&P 500 company reporting an 85.1% growth in profits from last year. Roughly nine out of ten companies have beaten expectations on both profits and revenue. The index is on pace to have its strongest earnings season since 2009.

Investors also have their eye on Washington after Republicans and Democrats made progress in advancing President Joe Biden’s infrastructure package over the weekend. The package is expected to be passed in the Senate by the end of the week.

Traders are getting a few pieces of economic data this week that could help them better gauge the economy’s health.

The Institute for Supply Management, a trade group of purchasing managers, said manufacturing slowed in July. Many companies are being held back by supply chain issues. The trade group will release its report on the services sector on Tuesday, which is a much bigger piece of the U.S. economy.

Meanwhile, Square jumped 10.2% after the payments company said it would acquire the “buy now, pay later” company Afterpay for $29 billion.

ASX 200 expected to fall​

It looks set to be a tough day of trade for the Australian share market on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 24 points or 0.3% lower this morning.

This follows a subdued start to the week on Wall Street, which saw the Dow Jones fall 0.28%, the S&P 500 drop 0.18%, and the Nasdaq edge slightly higher. The RBA meeting this afternoon could also have an impact on the market late on.

 

[bigdog]

Asian stocks rise following uptick on Wall Street

Asian stocks are rising as traders mirrored overnight gains on Wall Street during another busy earnings week.

apnews.com

Stocks shake off a wobbly start, end higher on Wall Street

By DAMIAN J. TROISE and ALEX VEIGA

Technology and health care companies led a broad rally on Wall Street Tuesday that helped stocks overcome a wobbly start and recoup their losses from a day earlier.

The S&P 500 rose 0.8% after having been down 0.3% in the early going. The gain inched the benchmark index to an all-time high, eclipsing the record it set early last week.

Banks, industrial companies and energy stocks also helped push the S&P 500 higher. Communications companies were the only laggard. Treasury yields were mixed.

Investors weighed another large swath of company earnings reports Tuesday, including quarterly snapshots from Ralph Lauren and Clorox. While earnings have been strong, Wall Street remains cautious over COVID-19 and its potential impact on a still recovering economy amid the spread of the highly contagious delta variant.

This mutant version of COVID-19 is still reason for caution, but it likely won’t have a significant impact on the economy’s reopening and recovery because hospitalizations are relatively tame and fatalities are very low in comparison to infections, said Jason Pride, chief investment officer of private wealth at Glenmede.

“We may still deal with the lingering residual effects of the pandemic,” Pride said. “You’ve probably got a period of time where the economy has to restitch itself back together.”

The S&P 500 rose 35.99 points to 4,423.15. The Dow Jones Industrial Average gained 278.24 points, or 0.8%, to 35,116.40. and the Nasdaq composite index picked up 80.23 points, or 0.6%, to 14,761.29.

Smaller company stocks also notched gains. The Russell 2000 index rose 8.09 points, or 0.4%, to 2,223.58.

Investors are in the midst of earnings season, with more than 100 companies in the S&P 500 index reporting their results this week. So far earnings have been strong, with roughly nine out of every 10 companies beating analysts’ expectations.

Clorox slumped 9.5%, the stock’s biggest single-day drop since 2000, after reporting results that fell short of forecast and releasing a disappointing outlook.

Solid financial results helped lift several other companies. Ralph Lauren climbed 6.1% after handily beating analysts’ fiscal first-quarter profit forecasts as sales rebounded. Columbia Sportswear rose 0.6% after reporting a surprise second-quarter profit.

Activision Blizzard fell 3.5% after the head of Blizzard Entertainment said he would resign, effective immediately. Blizzard, maker of popular video games such as “Overwatch” and “World of Warcraft,” has been accused in a lawsuit of having a toxic work environment which has caused walkouts by employees.

Online broker Robinhood jumped 24.2% and topped its IPO price for the first time since its stock began trading last Thursday.

Bond yields were relatively stable. The yield on 10-year Treasury inched up to 1.18% from 1.17% from the day before. Less than a month ago, the 10-year note was trading around a yield of 1.35%.

Investors will be watching closely when the Labor Department releases its July jobs report Friday. Economists surveyed by FactSet forecast that the employers created 837,500 jobs last month and the unemployment rate fell to 5.7%.

ASX 200 futures pointing higher

The Australian share market is expected to push higher on Wednesday following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 12 points or 0.15% higher this morning.

On Wall Street, the Dow Jones rose 0.8%, the S&P 500 stormed 0.82% higher, and the Nasdaq pushed 0.55% higher.

 

[bigdog]

Asia stocks mixed with eyes on US economic recovery

Asian stocks are mixed as traders await more guidance on the U.S. economic recovery. The Nikkei 225 in Tokyo rose 0.3% to 27,678.79 while the Kospi in South Korea lost 0.1% to 3,278.13 on Thursday.

apnews.com

Stocks slip on Wall Street, pulling S&P 500 below record

By DAMIAN J. TROISE and ALEX VEIGA

Stocks gave back some of their recent gains Wednesday after a disappointing jobs report stoked worry about the strength of the economic recovery as a highly contagious variant of the coronavirus spreads.

The S&P 500 fell 0.5%, easing back from the all-time high the benchmark index set a day earlier. Crude oil prices fell more than 3% and pushed energy companies lower. Industrial firms, banks, retailers, hotels and other companies that rely on direct consumer spending also fell. Those losses outweighed gains in technology and communication stocks.

Payroll processor ADP revealed a disappointing snapshot of the nation’s employment recovery, adding to concerns about the lagging recovery in the jobs market. ADP said the private sector added 330,000 jobs in July, falling far short of economists’ expectations. The report comes ahead of the Labor Department’s more comprehensive July jobs report on Friday.

“You’re getting some mixed signals, certainly, but we think we’ll get some good growth and the underlying economy is pretty good,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute.

The recovery in the jobs market will likely continue to be bumpy, but it’s on track to continue improving over the long term, he said.

The S&P 500 fell 20.49 points to 4,402.66. The Dow Jones Industrial Average dropped 323.73 points, or 0.9%, to 34,792.67. The Nasdaq composite added 19.24 points, or 0.1%, to 14,780.53. The Dow and Nasdaq each hit all-time highs just last week.

Stocks have been choppy this week as investors continue to pore over corporate earnings reports while reviewing economic data for clues as to how the economic recovery is going.

Wednesday’s jobs survey from ADP raised doubts that Friday’s broader July jobs report will exceed expectations. Economists are projecting that U.S. employers added 700,000 jobs last month, and that the national unemployment rate slipped to 5.7% from 5.9%, according to FactSet.

That outlook is now likely too optimistic, because of the sudden resurgence in COVID-19 cases due to the delta variant, Brad McMillan, chief investment officer for Commonwealth Financial Network, wrote Wednesday.

And if Friday’s job report shows a similar shortfall as the ADP survey, that “would signal that the job recovery has slowed, at a minimum,” McMillan wrote.

Traders also weighed an encouraging report on growth in the services sector, which makes up the bulk of the U.S. economy. The Institute for Supply Management reported that in July the sector grew at its fastest pace since the survey started in 2008.

Bond yields mostly recovered from an early slip following the release of the report. The yield on the 10-year Treasury dropped to 1.16%, down from 1.17% late Tuesday. It dipped as low as 1.13% in early trading.

The resurgence of COVID-19 with the highly contagious delta variant in spots around the world is also a key concern for Wall Street. China’s worst outbreak since the start of the pandemic a year and a half ago escalated Wednesday with dozens more cases around the country and the sealing-off of one city.

While analysts don’t expect the spike in infections to send the world back in to the lockdowns experienced a year ago, it could still stunt economic growth.

Still, worries about the delta variant, sluggish employment growth and signs the Federal Reserve is beginning to consider reducing its support for the economy amid rising inflation all point to “slowing growth later in the year, or more likely 2022,” said Jay Hatfield, CEO of Infrastructure Capital Advisors.

Investors are also still in the thick of corporate earnings season. The results have been solid so far. Roughly 75% of companies in the S&P 500 have turned in their earnings and the majority have been surprisingly good.

Strong profit and revenue results weren’t enough to lift stocks for many companies on Wednesday, however. General Motors fell 8.9% despite overcoming an industry-wide chip shortage to beat analysts’ profit expectations and raise its forecast. CVS Health slipped 2.9% after also reporting solid results.

Ticket seller and concert promoter Live Nation rose 1.5% after reporting surprisingly mild second-quarter loss. Cruise line operator Royal Caribbean Group slid 2.5% after its latest quarterly results fell short of analysts’ expectations.

Online broker Robinhood surged 50.4%, a big turnaround following its tepid stock market debut last week. Trading was volatile and had to be halted three times shortly after the market opened. Market experts have cautioned that Robinhood’s stock could be in for a jagged ride because of its popularity among smaller investors.

ASX 200 expected to fall
The Australian share market looks set to fall on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 13 points or 0.2% lower this morning.

This follows a poor night of trade on Wall Street which saw the Dow Jones fall 0.92%, the S&P 500 drop 0.46%, and the Nasdaq edge 0.13% higher.

 

[bigdog]

Asian stocks sink as investors watch for US jobs data

Asian stock markets have sunk after Wall Street rose to a high as investors wait for U.S. jobs data for an update on how coronavirus flareups are affecting the biggest global economy.

apnews.com

Stocks climb on Wall Street, notching more record highs

By DAMIAN J. TROISE and ALEX VEIGA

A broad rally on Wall Street pushed stocks higher Thursday, nudging the S&P 500 and Nasdaq indexes to record highs.

The gains reversed the market’s modest losses from a day earlier. Despite a choppy week of trading, the major indexes are on pace for weekly gains.

The S&P 500 rose 0.6%, eclipsing its previous all-time high set Tuesday. Technology stocks, retailers and other consumer-facing companies, and communications stocks helped lift the market. Banks made solid gains as long-term bond yields rose, which lenders rely on to charge higher interest rates on loans. The yield on the 10-year Treasury rose to 1.21% from 1.18% late Wednesday. Only Health care and materials stocks fell.

Encouraging jobs data and a strong batch of corporate earnings reports helped put investors in a buying mood. Traders were also looking ahead to the government’s latest monthly national jobs report Friday morning, which should provide insight into how the labor market is faring amid a surge in cases of the highly contagious COVID-19 delta variant.

“You do have a little bit of trepidation and concern around how the Covid flareups are going to impact things,” said Andrew Mies, chief investment officer at investment advisory firm 6 Meridien. “I don’t think that anybody has a great idea of what the magnitude of this could look like if we go out two or three weeks.”

The S&P 500 index rose 26.44 points to 4,429.10. The Dow Jones Industrial Average gained 271.58 points, or 0.8%, to 35,064.25. The Nasdaq climbed 114.58 points, or 0.8%, to 14,895.12.

Smaller company stocks outpaced the broader market in a sign that investors are feeling more confident about economic growth. The Russell 2000 rose 39.69 points, or 1.8%, to 2,236.01.

Wall Street got another glimpse of the recovering jobs market after the Labor Department reported that unemployment claims — a proxy for layoffs — dropped last week by 14,000. The generally encouraging report follows a weak report from payroll processor ADP on Wednesday showing that the private sector added jobs at a much slower pace than expected in July.

The labor market has lagged other areas of the economy during the recovery from the virus pandemic. Investors will get a more comprehensive picture on Friday when the Labor Department releases its July jobs report.

Investors also weighed another batch of earnings reports. Underwear maker Hanesbrands jumped 6.3% after reporting solid second-quarter financial results. Booking Holdings rose 5.9% after it reported solid revenue.

Several companies that benefited from the shift in consumer habits during the height of the pandemic slipped after releasing disappointing results or forecasts. Online crafts marketplace Etsy fell 9.7% after giving investors a weak sales forecast as more people return to shopping in person. Video-streaming service Roku shed 4% after active accounts and streaming hours fell short of analysts’ forecasts.

Weber, the pioneering grill maker, jumped 17.9% in its stock market debut.

ASX 200 futures pointing slightly higher​

The Australian share market could end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 4 points higher this morning.

This follows a very strong night on Wall Street, which saw the Dow Jones rise 0.78%, the S&P 500 climb 0.6%, and the Nasdaq storm 0.78% higher.