NYSE Dow Jones finished today at:

[bigdog]

https://apnews.com/article/business...cial-markets-602a38ea3e4a0f4b10ceb7cd8403cd9e

Strong jobs report sends most stocks, bond yields higher

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA

Wall Street capped a choppy week of trading Friday with broad gains, which helped push the S&P 500 and Dow Jones Industrial Average to new highs.

The S&P 500 rose 0.2%, a day after setting another all-time high. Every major index notched a weekly gain after slipping last week.

Some of the sharpest action happened in the bond market, where Treasury yields tend to move with expectations for the economy and for inflation. The yield on the 10-year Treasury climbed to 1.31% from 1.21% late Thursday, clawing back all the losses it sustained over the last week.

Investors weighed a government report showing the U.S. job market is making widespread improvements. Most stocks across Wall Street rose following the report, with companies whose profits are most closely tied to the strength of the economy leading the way. Financial companies notched the biggest gains within the S&P 500, climbing 2%. Materials companies also were big winners, adding 1.5%.

“Now, growth looks like it’s on a pretty solid footing,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

The S&P 500 rose 7.42 points to 4,436.52. The benchmark index notched a 0.9% gain for the week. The Dow gained 144.26 points, or 0.4%, to 35,208.51. The Nasdaq fell 59.36 points, or 0.4%, to 14,835.76, while the Russell 2000 index of smaller companies rose 11.75 points, or 0.5%, to 2,247.76.

Friday’s jobs report showed that hiring was stronger than economists expected, with employers adding 943,000 workers to their payrolls. Average wages also jumped 4% in July from a year earlier, more than economists expected.

Bond yields jumped after economists said the encouraging jobs report will give the Federal Reserve another nudge to pare back its bond-buying program, which is trying to juice the economy by keeping longer-term rates low. Economists say an announcement by the Fed about a possible slowdown in purchases could come as soon as the end of the month.

The solid jobs report and expectations for a recovery in the labor market could nudge investors back toward companies that are poised to benefit from people going out and spending more, including airlines, retailers, restaurants and other firms providing in-person services, Samana said.

The better-than-expected data on the economy took momentum out of technology stocks, which have been some of Wall Street’s biggest winners since the pandemic.

They’ve been big beneficiaries of the ultra-low interest rates the Federal Reserve has brought about. When bonds are paying little in interest, investors are willing to pay higher prices for other kinds of investments, particularly stocks of companies with big earnings growth forecast far in the future.

A rise in interest rates could undercut those stocks, or at least add a headwind that has been largely absent for more than a year. A slowdown in bond purchases by the Fed would be the first step toward raising short-term interest rates off their record low of nearly zero.

That’s why the Nasdaq struggled more than other indexes Friday. It’s also why the benchmark S&P 500 made mostly listless moves, even though more than 60% of the stocks within the index rose.

Apple, Microsoft, Nvidia and other technology stocks make up 28% of the S&P 500 by market value, more than double the weight of any of the other 10 sectors that comprise the index. That doesn’t even include some big tech-oriented companies like Amazon and Tesla.

Those five companies were the biggest weights on the S&P 500.

The biggest gain in the S&P 500 came from Corteva, an agricultural company spun off from DowDuPont. It jumped 8% after reporting stronger revenue and earnings for the latest quarter than Wall Street expected.

That’s been the norm for this earnings reporting season. Close to 90% of the companies in the S&P 500 have told investors how much profit they earned during the spring, and their earnings were roughly double what they were a year ago.

 

[bigdog]

ASX 200 expected to rise​

The Australian share market is expected to continue its positive run on Monday. According to the latest SPI futures, the ASX 200 is expected to open the day 30 points or 0.4% higher this morning.

This follows a reasonably solid end to the week on Wall Street, which saw the Dow Jones rise 0.4%, the S&P 500 climb 0.2%, but the Nasdaq tumble 0.4% lower.

 

[bigdog]

https://apnews.com/article/business...cial-markets-25967954ebc27aeee385ebbef95f8844

Stocks end a wobbly day lower, edging below recent records

By DAMIAN J. TROISE and ALEX VEIGA

Technology and energy companies led stocks lower on Wall Street Monday, easing the market back from its recent all-time highs.

The S&P 500 slipped 0.1%, erasing an early gain. Technology companies accounted for a big share of the decline. Industrial and consumer-centric stocks also fell. Those losses outweighed gains in health care companies, banks and elsewhere in the market.

Energy companies slumped the most among S&P 500 stocks as the price of benchmark U.S. crude oil fell 2.6% to its lowest levels since May. The move lower follows a decline of 7.7% last week. Occidental Petroleum shed 3%.

Every major index was coming off weekly gains last week, which ended with record highs for the S&P 500 and the Dow Jones Industrial Average.

The modest pullback is another example of the volatility the market has seen amid uncertainty over the impact COVID-19 variants will have on the economy and the Federal Reserve’s next monetary policy moves, said Sylvia Jablonski, chief investment officer at Defiance ETFs.

“People who got in and saw some of the stocks that they hold at all-time highs on Friday, perhaps they’re selling a little bit off today and might be opportunistically trading some of this volatility,” she said.

The S&P 500 fell 4.17 points to 4,432.35. The Dow dropped 106.66 points, or 0.3%, to 35,101.85. The Nasdaq added 24.42 points, or 0.2%, to 14,860.18.

Smaller companies fell more than the rest of the market. The Russell 2000 index lost 12.95 points, or 0.6%, to 2,234.81.

Bond yields moved higher. The yield on the 10-year Treasury rose to 1.32% from 1.28% late Friday. Bond yields tend to move with expectations for the economy and for inflation.

The latest round of corporate earnings is winding down, and nearly 90% of companies in the S&P 500 have reported their latest results. The reports have been mostly solid. Tyson Foods jumped 8.7% for one of the biggest gains in the S&P 500 Monday after handily beating Wall Street’s profit forecasts.

Investors are also closely watching the world’s reaction to the latest surge of the coronavirus. Some governments have reimposed limits on business and travel. China canceled flights as it tries to stop a rash of outbreaks. Australia’s two most populous states have told people to stay home except to go to work or for a handful of other reasons.

Analysts expect the U.S. and global economies to continue growing, but have cautioned that the resurgent virus could slow down the pace.

“That’s one part of the story and that could be holding back” the stock market, said David Kelly, chief global strategist at JPMorgan Funds. “We don’t really have a handle on how bad the delta variant might get.”

Investors have been taking in a steady stream of encouraging economic reports. The latest from the Labor Department shows that U.S. employers posted a record 10.1 million job openings in June. That follows Friday’s report that the economy generated 943,000 jobs last month and the unemployment rate fell to 5.4% from 5.9% in June.

The solid jobs figures also raise some concerns about wage inflation and the pace of economic growth.

“We’re burning our way back to full employment fast,” Kelly said. “Once we get there the economy is going to slow down.”

The latest figures also raise concerns about inflation fueled by the improving job market, as employers are potentially forced to raise wages to fill jobs.

Investors will get another piece of data on inflation when the Labor Department releases its consumer price index for July on Wednesday. Wall Street is still trying to gauge how much inflation might rise as the economy recovers and whether that will push the Federal Reserve to trim back its support for the economy sooner than expected.

Major indexes in Europe edged lower while indexes in Asia ended mixed.

ASX 200 expected to rise​

It looks set to be a positive 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 25 points or 0.35% higher this morning.

This is despite a poor start to the week on Wall Street, which saw the Dow Jones fall 0.3%, the S&P 500 drop 0.09%, and the Nasdaq edge 0.16% higher.

 

[bigdog]

https://apnews.com/article/business...cial-markets-0b689a40668f98da7cabc42f453ed26c

Stocks edge higher as banks, industrials offset tech slide

By DAMIAN J. TROISE and ALEX VEIGA

Stocks capped another wobbly day of trading on Wall Street with modest gains Tuesday, as financial and industrial companies helped lift the market, outweighing a pullback in technology stocks.

The S&P 500 recovered from an early slip and eked out a 0.1% gain, enough to eclipse the record high it set Friday. The majority of companies in the benchmark index made gains, but they were kept in check by technology companies, which have an outsized weight on the S&P 500.

Banks made some of the strongest gains as bond yields edged higher. Banks benefit from higher yields, which allow them to charge higher interest rates on loans. The yield on the 10-year Treasury rose to 1.35% from 1.31% late Monday.

Oil prices pulled up after sliding most of the last week and into Monday. U.S. benchmark crude oil rose 2.7% and helped lift the S&P 500′s energy sector to 1.7% gain. Exxon Mobil rose 1.7% and Chevron gained 1.8%.

The broader market remains choppy with investors in the midst of a relatively quiet week. The latest round of corporate earnings is nearly finished and there are only a few pieces of economic data expected.

“We think this is a growing market and a growing economy and there’s room for this market to move,” said Rob Haworth, senior investment strategy director at U.S. Bank Wealth Management. “But that growth story does have some risk to it.”

The S&P 500 gained 4.40 points to 4,436.75. The Dow Jones Industrial Average rose 162.82 points, or 0.5%, to 35,264.67. The blue-chip index also notched an all-time high.

The slide in technology stocks weighed on the tech-heavy Nasdaq, which lost 72.09 points, or 0.5%, to 14,788.09. Small company stocks rose. The Russell 2000 index gained 4.55 points, or 0.2%, to 2,239.36.

Wall Street is still trying to gauge the pace of economic growth amid new worries about the latest wave of COVID-19 from the more contagious delta variant. Parts of Japan, including Tokyo, the capital, remain under a state of emergency as surging numbers of infections put more COVID-19 patients in already overburdened hospitals.

Analysts have said that the pace of growth will likely continue to slow as the year rolls on, but the latest surge with the virus has raised more concerns about just how much. Investors could have a better sense of the virus’ impact on the economy in the coming months as schools reopen from summer break and people try to get back to normal activities, Haworth said.

Inflation concerns and the Federal Reserve’s future plans to ease up on its support for low interest rates also hangs over the markets.

Earnings season is wrapping up with several big names. Sysco surged 6.5% after the food distributor reported quarterly results that topped Wall Street’s estimates.

Ebay will report its results on Wednesday and Walt Disney will report results on Thursday.

Kansas City Southern jumped 7.5% after Canadian Pacific raised its offer for the railroad operator, reigniting a bidding war with Canadian National.

ASX 200 futures pointing higher​

The Australian share market is expected to push higher on Wednesday following a decent night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 19 points or 0.25% higher this morning.

On Wall Street, the Dow Jones rose 0.46%, the S&P 500 pushed 0.1% higher, and the Nasdaq dropped 0.49%. US markets were boosted by a US$1 trillion infrastructure bill.

 

[bigdog]

https://apnews.com/article/business...cial-markets-26cd2a7ee6b5ee0f6cacc4938a89a8e4

S&P 500, Dow industrials mark records but Nasdaq lags behind

By DAMIAN J. TROISE and ALEX VEIGA

Banks and industrial companies helped lift stocks on Wall Street mostly higher Wednesday, pushing the S&P 500 and Dow Jones Industrial Average past the record highs they set a day earlier.

The S&P 500 rose 0.2% after another wobbly day of trading. Nearly three-fourths of the companies in the benchmark index notched gains, including energy stocks, which rose along with the price of crude oil. Health care was the only sector to fall.

After a stumbling start to the week, stocks have been moving higher on the back of strong earnings and better-than-expected economic data.

Traders got a dose of decent economic news Wednesday when the Labor Department said that consumer prices rose 0.5% from June to July, down from the previous monthly increase of 0.9%. Year over year, consumer prices have increased a substantial 5.4%.

Investors’ relief that the June data didn’t show a bigger increase in inflation may have kept stock prices moving higher, said Sam Stovall, chief investment strategist at CFRA.

“Our estimate was that June was going to be the peak month in inflation, and it appears that it was,” Stovall said.

The S&P 500 index rose 10.95 points to 4,447.70. The Dow gained 220.30 points, or 0.6%, to 35,484.97. Both indexes also set all-time highs on Friday and Tuesday.

Weakness in some technology stocks helped pull the Nasdaq composite slightly lower. It fell 22.95 points, or 0.2%, to 14,765.14.

Smaller company stocks rose. The Russell 2000 index picked up 10.98 points, or 0.5%, to 2,250.34.

Bond yields mostly edged lower. After reaching 1.36% in the early going, the yield on the 10-year Treasury slipped to 1.33% from 1.34% late Tuesday.

Investors’ concerns about inflation and uncertainty about the Federal Reserve’s future plans to ease up on its support for low interest rates have been hanging over the market.

While the headline figures may seem bad, most of the rise in consumer prices has been tied to very specific goods that are not expected to impact the long-term health of the economy, like used cars, building materials and hotel rooms. These items came into short supply during the pandemic, and the increased economic activity has made prices for those items rise faster than usual.

The Federal Reserve has repeatedly said it believes any increase in inflation would be temporary and largely a result of the supply disruptions that happened because of the pandemic. Investors will get another inflation snapshot Thursday, when the Labor Department issues its July wholesale price data.

Banks made some of the strongest gains Wednesday after bond yields initially edged higher, which benefits lenders because it allows them to charge higher interest on loans. Bank of America rose 1.3%.

Industrial stocks also helped lift the market. United Rentals climbed 5% for one of the biggest gains in the S&P 500.

Traders had a mix of earnings and corporate news to review. Coinbase, a platform where traders can buy and sell digital currencies like Bitcoin, rose 3.2% after reporting strong growth in the last quarter.

Weight-loss program operator WW International plunged 24.6% after reporting disappointing second-quarter financial results, while hamburger chain Wendy’s rose 3.7% after raising its profit forecast for the year and increasing its dividend.

Meanwhile, the New York Stock Exchange will begin requiring on Sept. 13 that anyone entering its trading floor show proof that they’ve been vaccinated against COVID-19, according to an email obtained by the Associated Press.

Persons granted an exception to the rule because they can’t get vaccinated due to qualifying medical or religious reasons will be required to show they tested negative for the virus three times a week. The policy change, which applies to anyone with access to the NYSE or American Options Trading Floors, comes as alarm grows over the rapidly spreading delta variant.

ASX 200 expected to edge higher​

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 6 points or 0.1% higher this morning.

This follows a solid night of trade on Wall Street which saw the Dow Jones climb 0.62% to a record high, the S&P 500 rise 0.25%, and the Nasdaq edge 0.16% lower.

 

[bigdog]

https://apnews.com/article/business...cial-markets-3c93ec84d359ee89b2bf2f597a7da9d8

Stocks end higher on Wall Street as Big Tech climbs

By DAMIAN J. TROISE and ALEX VEIGA

Stocks capped another wobbly day of trading on Wall Street with more gains Thursday, as strength in technology and health care companies outweighed a pullback elsewhere in the market.

The S&P 500 eked out a 0.3% gain, good enough for its third straight all-time high. The benchmark index managed to end higher despite a majority of its companies closing lower. Gains for several big technology stocks, including Apple, countered weakness in chipmakers, industrial firms and energy companies. Treasury yields rose and crude oil prices fell.

Stocks wobbled between small gains and losses for much of the day in quiet trading as investors weighed a mix of new economic data showing jobless claims fell last week and inflation at the wholesale level jumped more than expected last month.

“The market is a little sleepy today,” said Greg Bassuk, CEO of Axs Investments. “Investors are looking to hang their hat on some outsized economic data that can give more certainty around the extent to which the economy is opening up.”

The S&P 500 rose 13.13 points to 4,460.83. The Dow Jones Industrial Average also recovered from an early slide to gain 14.88 points, or less than 0.1%, to 35,499.85. The blue-chip index also set its third record high in three days.

The tech-heavy Nasdaq added 51.13 points, or 0.3%, to 14,816.26. Small-company stocks fell, dragging the Russell 2000 index down 6.27 points, or 0.3%, to 2,244.07.

Investors worked through a mixed picture of economic data Thursday. The Labor Department said that jobless claims fell to 375,000 from 387,000 the previous week, another sign that the job market is healing from the pandemic.

At the same time, inflation at the wholesale level jumped a higher-than-expected 1% in July, matching the rise from the previous month, and dimming hopes that the upward trajectory of prices would begin to slow. The producer price index has risen a record 7.8% over the last 12 months. That’s the largest one-year increase in a series going back to 2010.

Much of the increase is coming from services, such as airline travel. Airline ticket prices are especially high as the industry tries to recover from the pandemic-forced slump in travel. Other areas are starting to ease up, though, with food costs falling for the time since December.

Investors have been particularly concerned about inflation for several months, despite assurances from the Federal Reserve and other officials that any inflation would be temporary and a result of the economy recovering. Bond yields have risen sharply the last week on those concerns, with the 10-year Treasury note trading at 1.37% versus 1.34% the day before.

The hopes for a continued recovery in the jobs market and concerns about inflation are hovering over the market as investors try to gauge the pace of economic growth after a sharp increase earlier in the year. Analysts expect the economy to grow at a slower pace as the economy moves past the pandemic and the sharp comparisons between 2021 and 2020.

“We don’t have a different economy than what we had going into the pandemic,” said Kimberly Woody, senior portfolio manager at Globalt. “Once you get rid of the comparisons and you cross the anniversary of the fourth quarter, you’re right back at the same economy you had before.”

Big Tech companies helped add to the S&P 500′s gains Thursday. Apple rose 2.1% and Adobe gained 1.3%, while chipmakers Micron Technology fell 6.4% and Lam Research slid 4.1% for some of the biggest declines in the index.

Investors also bid up shares in companies that reported better-than-expected quarterly results. Organon & Co. jumped 11.9% for the biggest gain in the S&P 500 after the company’s earnings and revenue topped Wall Street’s forecasts. Dillard’s also got a boost from its latest quarterly report card and rose 5.1%.

The Walt Disney Co. rose 5.1% in after-hours trading after the media giant returned to profitability in its most recent quarter as reopened theme parks sent its revenue higher.

ASX 200 futures pointing higher​

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 29 points or 0.4% higher this morning.

This follows a decent night on Wall Street, which saw the Dow Jones rise slightly to 0.04%, the S&P 500 climb 0.3%, and the Nasdaq push 0.35% higher

 

[bigdog]

https://apnews.com/article/business-asia-financial-markets-fb02864f2586544ea41f94c22a7a9da0

US stocks eke out gains, leaving S&P 500 higher for the week

By DAMIAN J. TROISE and ALEX VEIGA

Another wobbly day of trading on Wall Street gave way Friday to small gains and new highs for the S&P 500 and Dow Jones Industrial Average.

The two indexes wavered for much of the day before eking out their fourth straight gains. The benchmark S&P 500 rose 0.2% and notched its second-straight weekly increase. The Dow and the Nasdaq edged up less than 0.1%.

Stocks in the S&P 500 were nearly evenly split between winners and losers. Gains in technology, health care and household goods companies outweighed losses by banks, energy stocks and other sectors. Small-company stocks fell more than the broader market.

An economic report showing a big drop in consumer confidence last month due to the spreading delta variant of the coronavirus didn’t keep the market from managing more records.

“The reality is the market is holding up pretty well,” said Rob Haworth, senior portfolio manager at U.S. Bank Wealth Management. He noted that the consumer sentiment report is “something the market is looking through as temporary.”

The S&P 500 rose 7.17 points to 4,468. The Dow added 15.53 points to 35,515.38, and the Nasdaq picked up 6.64 points to 14,822.90.

The University of Michigan consumer sentiment index fell to 70.2 from its previous level of 81.2 in July. That was the largest drop in sentiment since April 2020, when the pandemic took its initial grip on the country.

The unexpectedly bad drop in the survey’s reading was almost entirely due to the spread of the delta variant of the coronavirus, which has caused hospitals to fill up with unvaccinated patients across the U.S.

While the broader market indexes notched slight gains, concerns about the resurgent virus prompted some investors to shift money away from companies that could take a hit from people pulling back on spending for travel and other in-person services, said Jay Hatfield, CEO of Infrastructure Capital Advisors.

American Airlines fell 2.9%, while Las Vegas Sands slid 2%. And the Russell 2000 index of small companies fell 20.96 points, or 0.9%, to 2,223.11, another sign traders were worried about future economic growth.

Technology companies made some of the broadest gains. Chipmaker Advanced Micro Devices rose 3.8%, while eBay climbed 7.4% for the biggest gain in the S&P 500.

Healthcare companies also gained ground. Pfizer rose 2.6% and Regeneron Pharmaceuticals gained 2.8%. Moderna slipped 0.4% after U.S. regulators authorized a booster shot of their COVID-19 vaccines for people with weakened immune systems.

Disney rose 1.% after the company returned to a profit last quarter, helped by the reopening of its theme parks and more subscribers to its Disney+ service.

Bond yields fell, which weighed on banks. The yield on the 10-year Treasury dropped to 1.29% from 1.34% late Thursday. JPMorgan Chase lost 1.1%.

 

[Garpal Gumnut]

https://apnews.com/article/business-asia-financial-markets-fb02864f2586544ea41f94c22a7a9da0

US stocks eke out gains, leaving S&P 500 higher for the week

By DAMIAN J. TROISE and ALEX VEIGA

Another wobbly day of trading on Wall Street gave way Friday to small gains and new highs for the S&P 500 and Dow Jones Industrial Average.

The two indexes wavered for much of the day before eking out their fourth straight gains. The benchmark S&P 500 rose 0.2% and notched its second-straight weekly increase. The Dow and the Nasdaq edged up less than 0.1%.

Stocks in the S&P 500 were nearly evenly split between winners and losers. Gains in technology, health care and household goods companies outweighed losses by banks, energy stocks and other sectors. Small-company stocks fell more than the broader market.

An economic report showing a big drop in consumer confidence last month due to the spreading delta variant of the coronavirus didn’t keep the market from managing more records.

“The reality is the market is holding up pretty well,” said Rob Haworth, senior portfolio manager at U.S. Bank Wealth Management. He noted that the consumer sentiment report is “something the market is looking through as temporary.”

The S&P 500 rose 7.17 points to 4,468. The Dow added 15.53 points to 35,515.38, and the Nasdaq picked up 6.64 points to 14,822.90.

The University of Michigan consumer sentiment index fell to 70.2 from its previous level of 81.2 in July. That was the largest drop in sentiment since April 2020, when the pandemic took its initial grip on the country.

The unexpectedly bad drop in the survey’s reading was almost entirely due to the spread of the delta variant of the coronavirus, which has caused hospitals to fill up with unvaccinated patients across the U.S.

While the broader market indexes notched slight gains, concerns about the resurgent virus prompted some investors to shift money away from companies that could take a hit from people pulling back on spending for travel and other in-person services, said Jay Hatfield, CEO of Infrastructure Capital Advisors.

American Airlines fell 2.9%, while Las Vegas Sands slid 2%. And the Russell 2000 index of small companies fell 20.96 points, or 0.9%, to 2,223.11, another sign traders were worried about future economic growth.

Technology companies made some of the broadest gains. Chipmaker Advanced Micro Devices rose 3.8%, while eBay climbed 7.4% for the biggest gain in the S&P 500.

Healthcare companies also gained ground. Pfizer rose 2.6% and Regeneron Pharmaceuticals gained 2.8%. Moderna slipped 0.4% after U.S. regulators authorized a booster shot of their COVID-19 vaccines for people with weakened immune systems.

Disney rose 1.% after the company returned to a profit last quarter, helped by the reopening of its theme parks and more subscribers to its Disney+ service.

Bond yields fell, which weighed on banks. The yield on the 10-year Treasury dropped to 1.29% from 1.34% late Thursday. JPMorgan Chase lost 1.1%.

View attachment 129014
View attachment 129015

Small gains and new highs can be a worry for bulls.

gg

 

[bigdog]

ASX 200 expected to fall​

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

This follows a subdued but positive end to the week on Wall Street, which saw the Dow Jones rise slightly, the S&P 500 climb 0.15%, and the Nasdaq edge lightly higher.

 

[bigdog]

https://apnews.com/article/business...an-pandemics-f46eed5238adfe8edf2aa4ff961c28d6

S&P hits new record amid rising concerns about pandemic

By DAMIAN J. TROISE and ALEX VEIGA

A choppy day on Wall Street ended Monday with the S&P 500 and Dow Jones Industrial Average notching new highs after recovering from an early slide.

The indexes each rose 0.3%, extending their winning streak to a fifth day, while the Nasdaq fell 0.2%. Technology and health care stocks accounted for much of the gain in the S&P 500. Sectors traditionally considered lower risk, including utilities and companies that make food and personal goods also helped lift the market. Those gains outweighed a pullback in banks, energy stocks and a swath of retailers and travel sector companies.

Despite the latest gains, there are signs that investors have turned cautious with the market at all-time highs amid rising coronavirus infections in the U.S. and around the globe due to the highly contagious delta variant.

Traders shifted money into U.S. bonds, which helped drag bond yields lower. Small company stocks fell, knocking the Russell 2000 index 0.9% lower. Nearly twice as many stocks in the New York Stock Exchange fell than rose.

“Delta is ending up being a cascading concern,” said Sam Stovall, chief investment strategist at CFRA. “It seems the market really doesn’t want to make a commitment for the intermediate or long term.”

The S&P 500 rose 11.71 points to 4,479.71. The Dow added 110.02 points to 35,625.40. The Nasdaq fell 29.14 points to 14,793.76. The Russell 2000 lost 19.69 points to 2,203.41.

Stocks have been pushing to ever higher records the past couple of weeks even amid choppy trading as investors try to gauge the impact of rising virus cases. Analysts had expected economic growth to slow from its breakneck pace earlier this year, but the highly contagious delta variant has prompted even more caution from investors.

The concerns are being heightened as students head back to school or prepare to head back to school at the end of August. School shutdowns because of the virus could crimp a recovery in the job market if parents have to stay home. A resurgence could also stifle the recovery for many businesses that rely on people leaving their homes to eat, shop and get other services.

Data out of China showed the global coronavirus pandemic continues to hurt economies around the world. Chinese industrial production and retail sales both rose last month, but at a far weaker pace than what economists had expected.

China’s economy is suffering from supply chain issues, where manufactured goods that would typically be on their way to foreign markets have either remained unfinished or stuck in shipping containers. The pandemic has made hiring workers harder as well.

The collapse of the Afghanistan government over the weekend was also on investors’ minds. While the economy of Afghanistan is small, the country is located in a delicate part of the world, sandwiched between the economic giants of South and East Asia and the oil-rich Middle East.

The price of U.S. crude oil fell 1.7% and weighed down energy companies. Exxon Mobil dropped 1.5% and Chevron closed 1% lower.

Shares in some retailers and tourism-related companies also fell. Caesars Entertainment slid 4% and Gap dropped 3.1%.

Bond yields fell and pulled banks lower. They rely on higher yields to charge more lucrative interest on loans. The yield on the 10-year Treasury fell to 1.26% from 1.29% late Friday. Wells Fargo lost 1.9% and Citigroup dropped 1.4%.

Also dampening investors’ optimism was the University of Michigan consumer sentiment index from Friday, which fell to 70.2 from its previous level of 81.2 in July. That was the largest drop in sentiment since April 2020, when the pandemic took its initial grip on the country.

The unexpectedly bad reading was almost entirely due to the spread of the delta variant of the coronavirus, which has caused hospitals to fill up with unvaccinated patients across the U.S.

ASX 200 expected to rise​

It looks set to be a better 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 9 points or 0.1% higher this morning.

This follows a reasonably positive start to the week on Wall Street, which saw the Dow Jones rise 0.31%, the S&P 500 climb 0.26%, but the Nasdaq drop 0.2% higher.

 

[bigdog]

https://apnews.com/article/business-health-china-asia-afghanistan-6432ce6162c84eba6d583c5626455efe

Wall Street slips as retail sales post steep drop in July

By DAMIAN J. TROISE and ALEX VEIGA

Stocks closed lower on Wall Street Tuesday, ending a five-day winning streak by the S&P 500, as investors turned cautious amid more signs that the coronavirus pandemic is still holding back the U.S. economy.

The benchmark index fell 0.7%, its biggest decline in four weeks. Technology stocks and a mix of companies that rely on consumer spending were the biggest weights on the market as traders become more concerned about the pace and breadth of economic growth amid a resurgent COVID-19. Those sectors tend to perform weakly in uncertain economic conditions.

The health care sector was alone in notching broad gains within the S&P 500. A mix of companies that sell food and personal goods, along with utilities and real estate companies held up better than most of the market as investors shifted money to less risky investments. Treasury yields edged higher.

The selling kicked off after a government report showed U.S. retail sales fell sharply last month. The report followed an unexpectedly bad consumer sentiment survey on Friday that was almost entirely due to the spread of the delta variant of the coronavirus, which has caused hospitals to fill up with unvaccinated patients across the U.S.

Those downbeat reports and the rise of the delta variant gave investors an opening to take some profits after a five-day run of all-time highs by the S&P 500 and the Dow Jones Industrial Average, said Ross Mayfield, investment strategist at Baird.

“We were at all-time highs, haven’t had a 5% pullback in close to a year,” Mayfield said. “And then the general delta resurgence has folks pretty much a little down on the recovery, so there was bound to be some weakness at some point.”

The S&P 500 fell 31.63 points to 4,448.08. The Dow lost 282.12 points, or 0.8%, to 35,343.28. The blue-chip index was briefly down 505 points. The tech-heavy Nasdaq composite dropped 137.58 points, or 0.9%, to 14,656.18.

Nearly three times as many stocks fell on the NYSE than rose. Small company stocks bore some of the heaviest selling. The Russell 2000 index slid 26.24 points, or 1.2%, to 2,177.17.

Bonds were little changed. The yield on the 10-year Treasury note held steady at 1.26%.

Americans cut back on their spending last month as a surge in COVID-19 cases kept people away from stores. Retail sales fell a seasonal adjusted 1.1% in July from the month before, the U.S. Commerce Department said Tuesday. It was a much larger drop than the 0.3% decline Wall Street analysts had expected.

According to Tuesday’s report, spending fell at stores selling clothing, furniture and sporting goods. At restaurants and bars, spending rose nearly 2%, but the rate of growth has slowed from recent months as the delta variant spread and people worried about dining with others.

The weak sales report dragged down companies that rely on discretionary spending from consumers. Ralph Lauren fell 2.7% and Whirlpool dropped 3.9%.

Travel-related companies, including airlines, cruise line and hotel operators, fell broadly. American Airlines lost 2.1%, Royal Caribbean Group slid 3.1% and Marriott International closed 2.1% lower.

“It doesn’t surprise me that we’re seeing a bit of an across the board sell-off, we’re a bit overdue,” said Mike Stritch, chief investment officer of BMO Wealth Management.

Major indexes had been trading at record highs on a mix of confidence from investors and friendly monetary policy from the Federal Reserve. Analysts still expect economic growth to continue through the year, but sentiment on Wall Street is becoming a bit more cautious on the pace.

Markets also digested news that Chinese factory output, consumer spending and investment grew more slowly in July than expected. The government blamed flooding in central China and controls on travel and business to fight outbreaks of the coronavirus’s delta variant.

Shares of Home Depot fell 4.3% after the company told investors that sales were slowing compared to last year, when millions of locked-down Americans undertook home improvement projects.

Homebuilders fell broadly following a disappointing report from the National Association of Home Builders. The organization said that builder confidence hit a 13-month low in July as companies worry about supply shortages and high costs. KB Home fell 4%.

ASX 200 futures pointing lower​

The Australian share market is expected to continue its poor run on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 38 points or 0.5% lower today.

This follows a poor night of trade on Wall Street, which saw the Dow Jones fall 0.79%, the S&P 500 drop 0.71%, and the Nasdaq sink 0.93%.

 

[bigdog]

https://apnews.com/article/business...rus-pandemic-ecb3e0ecbfd4588430bcdac5b90b1fc9

US stocks take a late turn lower, marking 2nd straight loss

By DAMIAN J. TROISE and ALEX VEIGA

Stocks fell broadly on Wall Street Wednesday, sending the S&P 500 to its second straight loss after a five-day winning streak.

The benchmark index fell 1.1%, its biggest decline since mid-July. The selling accelerated in the final hour of trading, with technology, health care, financial and industrial companies weighing down the index the most.

Only the index’s consumer discretionary sector, which includes a mix of companies that rely on consumer spending, rose as investors bid up shares in Lowe’s and other big retailers that reported better-than-expected quarterly results. Even so, the S&P remains within 80 points of its all-time high set on Monday.

The market didn’t react much initially to the afternoon release of the minutes from the Federal Reserve’s latest policy meeting, which confirmed that central bank policymakers have made no firm decision about when to start unwinding their support measures for the economy, which has been steadily recovering from the pandemic recession.

The surge this summer of virus cases because of the highly contagious delta variant now hangs over the broader market and is blurring the view on the economy’s continued recovery. The path of the virus and its impact on consumer spending and job growth could be a factor in the Fed’s decision making.

“We’re having a pretty cautious week for the most part,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. “A lot of the people who were optimistic that reopening would happen quickly are obviously disappointed, but we’re looking at what’s happening with the delta variant as more of a setback, not a change in direction.”

The S&P 500 index fell 47.81 points to 4,400.27. The Dow Jones Industrial Average slid 382.59 points, or 1.1%, to 34,960.69. The Nasdaq composite lost 130.27 points, or 0.9%, to 14,525.91.

Small company stocks also fell, sending the Russell 2000 index down by 18.39 points, or 0.8%, to 2,158.78.

The yield on the 10-year Treasury note rose to 1.27% from 1.25% late Tuesday.

The minutes from the Federal Reserve’s policy meeting last month, released at 2 p.m. Eastern, showed that Fed officials discussed the idea of beginning to taper the Fed’s extraordinary support for the U.S. economy later this year, though they stopped short of a firm decision on a timetable.

They also concluded that the economic recovery from the pandemic recession was moving closer to achieving the central bank’s goals on inflation and employment. As a result, the Fed is edging toward an announcement that it will begin paring the pace of its Treasury and mortgage bond buying, which now amounts to $120 billion a month. These purchases have been intended to lower longer-term interest rates and encourage borrowing and spending.

Investors are monitoring the Fed’s deliberations because the officials are likely to conclude their bond-buying program before starting to raise their benchmark short-term interest rate. That rate has been pinned near zero since the viral pandemic erupted in March 2020 and essentially shut down the economy.

Wall Street’s biggest worry is that the Fed will end its easy money policies earlier than expected to combat inflation, which would put some drag on the U.S. economy in its recovery. Investors will be looking for more clues as to the Fed’s moves next week, at the central bank’s annual conference in Jackson Hole, Wyoming.

Beyond watching the Fed, investors sized up quarterly report cards from retailers, which are among the last industries to issue results this earnings season.

Lowe’s Cos. jumped 9.6% for the biggest gain in the S&P 500 after the home improvement chain gave investors a strong sales forecast. TJX Cos. rose 5.6% after the parent of T.J. Maxx, Marshalls and other stores beat analysts’ second-quarter profit and revenue forecasts.

The surprisingly aggressive spread of the delta variant has prompted U.S. health officials to recommend COVID-19 booster shots to all vaccinated Americans, though the overall plan awaits a Food and Drug Administration evaluation of the safety and effectiveness of a third dose. Makers of COVID-19 vaccines were down following the news. Pfizer slipped 2.2% and Moderna fell 0.8%.

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 51 points or 0.7% lower this morning.

This follows a disappointing night of trade on Wall Street which saw the Dow Jones drop 1.08%, the S&P 500 fall 1.07%, and the Nasdaq tumble 0.89% lower. US markets tumbled after the latest US Federal Reserve meeting minutes gave an insight into its tapering plans.

 

[bigdog]

https://apnews.com/article/business...rus-pandemic-88216bbecd82852cdc8e31dc75785616

Another choppy day on Wall Street ends with indexes mixed

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street closed out another choppy day of trading Thursday, leaving the major stock indexes on pace for a weekly loss.

The S&P 500 managed a 0.1% gain after having been down 0.7% in the early going. The Nasdaq composite also recovered to eke out 0.1% gain, while the Dow Jones Industrial Average slipped 0.2%.

Small-companies fell broadly. A late-afternoon rally in technology stocks helped offset some of the losses in energy companies, banks and other sectors. Prices for oil and other commodities also fell, pulling mining and energy stocks lower. The yield on the 10-year Treasury note fell to 1.25%.

Investors continued to size up quarterly report cards from retailers. Macy’s posted its second-biggest single-day gain as traders cheered the department store chain’s latest results.

Much of the market’s choppiness, especially in the S&P 500, is due to investors trying to position themselves as they gauge the pace of the recovery and how it will benefit different sectors of the economy.

“One of the challenges right now is we’re getting some degree of a mixed message about what is working and what’s not,” said Eric Freedman, chief investment officer at U.S. Bank Wealth Management.

The market first has to gauge the near-term prospects for the economy as COVID-19 remains a threat, Freedman said. At the same time, investors have to also focus on what the economy looks like after the virus recedes or when the world learns to live with the virus in a different way.

“There’s going to be a lot of fits and starts,” he said.

The S&P 500 added 5.53 points to 4,405.80. The Dow fell 66.57 points to 34,894.12. The tech-heavy Nasdaq gained 15.87 points to 14,541.79. The Russell 2000 index of smaller companies fell 26.36 points, or1.2%, to 2,132.42.

The broader market has been losing ground overall since the benchmark S&P 500 reached another record high on Monday. It’s now within 1.7% of that record and on pace for its first weekly loss in three weeks. The Dow, Nasdaq and Russell 2000 are also down for the week.

Technology companies made broad gains, including 4% for chipmaker Nvidia after it reported strong financial results, but those gains were outweighed by a slide in financial and industrial stocks. Companies that rely on consumer spending also weighed heavily on the market. Energy stocks took the heaviest losses in the S&P 500 as energy prices fell.

Commodities fell broadly, with everything from oil to agricultural commodities to metals moving lower. Copper prices fell 1.9%, while the price of U.S. crude oil closed 2.7% lower. The drop in commodities prices dragged down oil companies and those who extract raw materials for industrial uses. Miner Freeport-McMoRan, Devon Energy and Occidental Petroleum fell 3% or more.

The volatility in the commodities markets is notable because investors have been acutely focused on inflation as the global economy emerges from the pandemic. Earlier this year prices for basic materials like lumber and copper and gasoline were all rising steadily and several high multi-year highs. Most of those gains have now been erased with declines in recent weeks.

Investors got a bit of positive economic news when the Labor Department reported another weekly drop in the number of Americans filing for unemployment benefits. Claims fell 29,000 to 348,000 last week, a pandemic low. The four-week average fell 19,000 to just below 378,000, also a pandemic low.

While stocks in the benchmark S&P 500 are now down roughly 1.4% this week, fund managers do not expect much volatility this month as investors will have little data to work with and earnings season is now mostly over. August also tends to be a popular month for investors to take their vacations, so trading is typically slower. September tends to be a much more volatile month once Wall Street is back to work.

Government bond yields fell. The 10-year Treasury note traded at a yield of 1.25%, down from 1.27% the day before.

Robinhood sank 10.3% as traders worried that the booming growth at the popular online brokerage app could slow down. Macy’s soared 19.6% after issuing a strong forecast and reporting earnings that were far bigger than analysts were expecting. That nearly matched the biggest percentage gain the stock had in its history, which came on May 27, 2020.

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 39 points or 0.5% higher.

This follows a mixed night on Wall Street, which saw the Dow Jones fall 0.19%, the S&P 500 climb 0.11%, and the Nasdaq rise 0.13%

 

[bigdog]

https://apnews.com/article/business...cial-markets-811fe92f98a4debf4a1d1deb5f88e214

Stocks end higher on Wall Street, still post weekly losses

By ALEX VEIGA

Technology companies led stocks broadly higher on Wall Street Friday, though the gains were not enough to erase the market’s losses from earlier in the week.

The S&P 500 index rose 0.8%, but still posted a weekly loss of 0.6% after two weeks of gains. Even so, the benchmark index is less than 1% from the all-time high it set Monday.

More than 80% of S&P 500 companies notched gains, including tech sector stocks. Microsoft rose 2.6% and chipmaker Nvidia gained 5.1% for the biggest gain in the index. A mix of companies that rely on consumer spending and communications stocks also made up a big share of the rally. Energy stocks also rose, despite another decline in the price of U.S. crude oil. Treasury yields mostly rose.

Investors turned cautious this week following some disappointing economic reports on retail sales, housing and consumer sentiment. Escalating coronavirus infections across the U.S. and around the globe due to the highly contagious delta variant have also given traders reason to pause with the market near all-time highs.

“Today was the first day that the market didn’t have to deal with disappointing economic data,” said Willie Delwiche, investment strategist at All Star Charts. “We also need to remember it’s a Friday in August, not typically an environment where we look for big signals out of the market.”

The S&P 500 rose 35.87 points to 4,441.67. The Dow Jones Industrial Average added 225.96 points, or 0.7%, to 35,120.08. The Nasdaq composite picked up 172.87 points, or 1.2%, to 14,714.66. The Dow and Nasdaq also posted weekly losses.

Small company stocks recovered some of their losses from earlier in the week. The Russell 2000 index added 35.18 points, or 1.7%, to 2,167.60. The index still finished with a 2.5% weekly drop.

Bond trading was quiet. The yield on the 10-year Treasury note rose to 1.26% from 1.24% late Thursday.

With earnings season winding down, investors got to see quarterly report cards from mostly retailers this week. On Friday, Ross Stores fell 2.7%, the biggest decline among S&P 500 companies, after issuing a full-year forecast that fell short of Wall Street’s expectations. Foot Locker jumped 7.3% after blowing past analysts’ forecasts for its latest quarter.

Fund managers aren’t expecting much volatility this month as investors will have little data to work with. August also tends to be a popular time for investors to take vacations, so trading volume typically declines. September tends to be a much more volatile month once Wall Street is back to work.

Still, next week could provide Wall Street with more insight on what the Federal Reserve may do about inflation. Earlier this week, minutes from the most recent Fed meeting showed that officials had discussed reducing the central bank’s bond-buying program later this year to start winding down some of the emergency measures that were implemented during the pandemic. But they stopped short of setting a firm timeline.

The Fed’s annual conference in Jackson Hole, Wyoming next week could offer hints on when such tapering may begin.

“From a historical perspective, the Fed doesn’t make news in its minutes, but it does tend to set out policy shifts at its symposium,” Delwiche said.

 

[bigdog]

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 39 points or 0.5% higher.

This follows a mixed night on Wall Street, which saw the Dow Jones fall 0.2%, the S&P 500 climb 0.1%, and the Nasdaq rise 0.1%

 

[bigdog]

https://apnews.com/article/business...cial-markets-7872e2f5a10a4b97c1810cd2df2d5aaa

Stocks rise broadly; Pfizer gains after FDA approves vaccine

By ALEX VEIGA

Stocks closed higher on Wall Street Monday, pushing the Nasdaq composite to an all-time high and helping the S&P 500 more than make up for its losses last week.

The S&P 500 rose 0.9%, after spending much of the day within striking distance of its own record high. The benchmark index ended less than 0.2% below its all-time high set a week ago.

Technology, communication and financial stocks helped lift the S&P 500. Companies that rely on consumer spending also rose. Energy stocks rallied as the price of U.S. crude oil jumped 5.3%, recovering some of the ground it lost last week. Only utilities, household goods makers and real estate companies fell. Treasury yields were mixed.

Pfizer rose 2.5% after the Food & Drug Administration gave full approval to its COVID-19 vaccine. The vaccine had been under an emergency use authorization since December, but the full approval could convince some reluctant Americans to now get their shot and will likely give local authorities the legal backing to impose mandates.

BioNTech, a German drug manufacturer which developed the vaccine with Pfizer, jumped 9.6% on the news. Moderna, which developed a similar vaccine that uses the same technology, vaulted 7.5%.

The prospects of more vaccinations and signs of some easing in the growth rate of coronavirus cases, helped put investors in a buying mood, said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

Hopefully, the FDA approval “increases the uptake of the vaccine,” said Samana. The market’s gains “shouldn’t be viewed as anything other than a vaccine rally.”

The S&P 500 rose 37.86 points to 4,479.53. The Dow Jones Industrial Average added 215.63 points, or 0.6%, to 35,335.71. The Nasdaq gained 227.99 points, or 1.5%, to 14,942.65, eclipsing its last all-time high set early this month.

Small-company stocks outgained the broader market. The Russell 2000 index picked up 40.70 points, or 1.9%, to 14,942.65.

Bond yields mostly fell. The 10-year Treasury yield slipped to 1.25% from 1.26% late Friday.

The market remains in a summer slowdown, with late August being historically one of the slowest times for trading with the exception of the Christmas holiday season. Markets are expected to pick up in volume and volatility after the Labor Day weekend.

Investors will be looking to the Federal Reserve as the Kansas City Fed’s annual conference in Jackson Hole, Wyoming starts later this week. It will likely provide Wall Street with more insight into what the Fed may do about inflation.

Last week, minutes from the most recent Fed meeting showed that policymakers had discussed reducing the central bank’s bond-buying program later this year to start winding down some of the emergency measures implemented during the pandemic. They stopped short of setting a firm timeline.

In economic news, sales of previously occupied homes rose from June to July at a faster-than-expected pace of 5.99 million, more than the 5.82 million economists were expecting. Still, sales increased by only 1.5% from July last year, a more modest annual gain than it recent quarters. Homebuilders fell broadly following the report. Los Angeles-based KB Home fell 1.1%.

ASX 200 expected to edge higher
The Australian share market is expected to rise slightly on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 4 points higher this morning.

This follows a very positive start to the week on Wall Street, which saw the Dow Jones rise 0.61%, the S&P 500 climb 0.85%, but the Nasdaq storm 1.55% higher.

 

[bigdog]

https://apnews.com/article/business...irus-vaccine-de9c1effe7ed5665d9081d7a81b42a03

Modest gains nudge Nasdaq above 15,000 for the first time

By ALEX VEIGA

Wall Street delivered more milestones Tuesday after a modest pickup in stocks nudged the S&P 500 to an all-time high and the Nasdaq composite climbed above 15,000 for the first time.

The benchmark S&P 500 index rose 0.2% after a relatively quiet day in the market. Banks and a mix of retailers, travel companies and restaurant chains accounted for much of the upward move. Those gains offset a slide in health care companies, household goods makers and technology stocks.

Investors bid up shares in homebuilders after the government reported that sales of new U.S. homes rose modestly last month. Small-company stocks outpaced the rest of the market. Treasury yields mostly edged higher. The price of crude oil had its second solid gain in a row, clawing back more of the ground it lost over the previous two weeks.

While investors have been monitoring the developments overseas in Afghanistan and with the coronavirus and its highly contagious delta variant, the absence of any new, bad news today may have helped keep the market moving higher, said Randy Frederick, vice president of trading & derivatives at Charles Schwab.

“In a bull market, in an absence of negative catalysts, you tend to get some upside movement,” Frederick said. “It’s slow and gradual, but it continues to trudge forward.”

The S&P 500 rose 6.70 points to 4,486.23. It was the index’s fourth-straight gain and its first record high since early last week. The Dow Jones Industrial Average gained 30.55 points, or 0.1%, to 35,366.26. The Nasdaq composite climbed 77.15 points, or 0.5%, to 15,019.80. The tech-heavy index also finished at a record high on Monday.

Small-company stocks outgained the rest of the market. The Russell 2000 index rose 22.61 points, or 1%, to 2,230.91.

Bond yields rose. The yield on the 10-year Treasury note rose to 1.29% from 1.25% the day before.

The market’s latest gains bolster its comeback after last week, when the S&P 500 posted its first weekly loss after two weeks of gains. Stocks rose on Monday as investors welcomed the Food & Drug Administration’s full approval of Pfizer’s COVID-19 vaccine amid expectations that it may make vaccination adoption more widespread.

The Pfizer vaccine approval has given cities and companies the legal backing to start requiring mandates. On Monday, New York City and the Department of Defense announced vaccine requirements. Shares in Pfizer fell 3.1% Tuesday. Moderna, another coronavirus vaccine maker, dropped 4.1%.

ASX 200 futures pointing higher​

The Australian share market is expected to continue its positive run on Wednesday. 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 decent night of trade on Wall Street, which saw the Dow Jones rise 0.09%, the S&P 500 climb 0.15%, and the Nasdaq push 0.52% higher.

 

[bigdog]

https://apnews.com/article/business-asia-financial-markets-ff26d2aadaf99d0f86373327e2172720

Modest gains produce more record highs for S&P 500, Nasdaq

By ALEX VEIGA

Stocks on Wall Street closed with modest gains Wednesday, driving the S&P 500 and Nasdaq to all-time highs for the second day in a row.

Financial and energy companies led the way higher among stocks in the S&P 500. The benchmark index rose 0.2%, marking its fifth straight gain. A rise in bond yields, which allows lenders to charge higher interest rates on loans, helped push bank stocks higher. Health care and technology companies were among the laggards.

The market’s latest gains came as earnings season continues to wind down and investors wait to hear from the Federal Reserve the next couple of days, when central bank officials hold their annual symposium. Wall Street is keen to gain new insight on the Fed’s view of the economy and what action, if any, it is considering taking to tackle rising inflation.

“Earnings are rising, inflation is moderate and interest rates are low, and that typically presents a favorable backdrop,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.

The S&P 500 added 9.96 points to 4,496.19. The index is on pace for a 1.2% weekly gain after closing out last week with its first weekly loss in three weeks.

The Dow Jones Industrial Average rose 39.24 points, or 0.1%, to 35,405.50. The Nasdaq gained 22.06 points, or 0.2%, to 15,041.86. The major indexes bounced back from modest declines in the early going.

Small company stocks continued to do better than the broader market. The Russell 2000 index picked up 8.36 points, or 0.4%, to 2,239.27.

Bond yields moved broadly higher. The yield on the 10-year Treasury note rose to 1.35% from 1.28% the day before.

Trading has been mostly quiet this week ahead of the Federal Reserve’s annual convention in Jackson Hole, Wyoming, which begins Thursday.

Investors are betting that Fed officials will remain in “wait and see” mode regarding inflation, since most policymakers believe any inflation earlier this year would be temporary and the rise in COVID-19 cases has made some economists worried. Meanwhile there are other Fed officials that say the U.S. central bank needs to start winding down bond purchases to combat inflation.

Fed Chair Jerome Powell is scheduled to speak at the convention on Friday. While the event is a logical opportunity for Powell to reveal new monetary policy, it doesn’t mean it’s likely to happen, analysts say.

Economic reports have been disappointing recently, and uncertainty about the highly contagious coronavirus delta variant and how it may affect the economy this fall could give Powell pause, said Willie Delwiche, investment strategist at All Star Charts.

“I don’t know that he wants to get ahead of that,” Delwiche said. “He might take a wait-and-see approach in terms of introducing the next phase of what the Fed is going to do.”

Sandven doesn’t expect any big news to come out of the gathering of Fed officials.

“We may get some indication out of Jackson Hole as to when the Fed may like to change its course, but I think it’s fairly well telegraphed and our belief is that we’re not likely to get anything substantial,” he said. “And if we do, that’s probably going to be a little bit of a disruptor to the broad market.”

The KBW Bank Index, which tracks the 24 largest banks in the country, rose 1.8% as financial stocks rallied Wednesday. JPMorgan rose 2.1%.

Industrial stocks and a variety of retailers, homebuilders and other companies that rely on consumer spending also helped lift the market. Deere & Co. rose 2.3%, D.R. Horton added 1.3%, Domino’s Pizza gained 2.1% and Caesar’s Entertainment picked up 4.1%.

Health care stocks were the biggest decliner in the S&P 500. Pfizer was among the biggest drags on the sector, shedding 1.8%.

Dick’s Sporting Goods jumped 13.3% after reporting a surge in quarterly sales and a special dividend.

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 today.

This is despite it being a positive night of trade on Wall Street. Overnight, the Dow Jones rose 0.11%, the S&P 500 climbed 0.22%, and the Nasdaq rose 0.15%.

 

[bigdog]

https://apnews.com/article/technolo...cial-markets-1b9480307f74044bbd6191edf15c3f63

Stocks fall after Kabul bombing; traders also wait for Fed

By ALEX VEIGA

Technology and communication companies led a broad sell-off on Wall Street Thursday following deadly suicide attacks at the Kabul airport in Afghanistan.

The S&P 500 fell 0.6% a day after capping a five-day winning streak with an all-time high. The Dow Jones Industrial Average fell 0.5%, while the Nasdaq composite lost 0.6%. Despite the losses, the three major indexes are on track for weekly gains.

Twin suicide bombings struck Thursday outside Kabul’s airport, where large crowds of people trying to flee Afghanistan have massed. At least 60 Afghans and 12 U.S. troops were killed, according to Afghan and U.S. officials. Scores of other people were wounded. The airport had been the focus of NATO evacuations from the country after the Taliban took over last week.

The declines were widespread, with 10 of the 11 sectors in the S&P 500 closing lower. Technology stocks, communication services providers and a mix of companies that rely on consumer spending accounted for much of the pullback. Banks and energy stocks also weighed on the index. Only real estate stocks closed higher.

Stocks had been moving lower in early trading before the bombings, following pullbacks in markets in Asia and Europe, as investors looked ahead to the Federal Reserve’s two-day conference in Jackson Hole, Wyoming, which began Thursday. The selling accelerated swiftly once news of the attacks broke.

“The unfortunate news that we had around the airport bombing perhaps gave people a reason to sell more aggressively,” said J.J. Kinahan, chief strategist with TD Ameritrade.

The S&P 500 fell 26.19 points to 4,470, while the Dow dropped 192.38 points to 35,213.12. The Nasdaq lost 96.05 points to 14,945.81. The tech-heavy index closed above 15,000 points for the first time a day earlier.

Small company stocks shouldered some of the heaviest selling. The Russell 2000 index slid 25.29 points, or 1.1%, to 2,213.98.

Despite the sell-off in stocks, market indicators that traditionally signal worry on Wall Street were little changed. Treasury yields were mixed, and the yield on the closely watched 10-year Treasury held steady at 1.35%. Meanwhile, the price of gold rose only 0.2%.

The VIX, a measure of nervousness among stock investors, rose 12%, but remained slightly below 20, which signals market risk is low.

“That would imply those markets are not expecting a big fallout,” said Sam Stovall, chief investment strategist at CFRA.

Stovall noted that similar shocking geopolitical events in the past have typically not had a lasting impact on stocks.

“In the short term, the question is, ’will it result in an economic contraction?” Stovall said. “Well, most of the time the answer is no, so it ends up being a short-term, kneejerk reaction by traders that really doesn’t have staying power, because while it’s tragic in the consequences to those involved, it has little to no effect on the global economy.”

Before the attack, most of the market’s attention was on the Fed and on what Fed Chair Jerome Powell will say when he speaks at the central bank’s annual symposium on Friday.

Traders are betting that Fed officials will remain in a “wait and see” mode regarding inflation, since most policymakers believe any inflation earlier this year would be temporary and the rise in COVID-19 cases has worried some economists.

That said, yields have steadily risen in the bond market in the past week, which could be a sign that traders are preparing for the Fed to start winding down its emergency support measures in the coming months.

Jobless claims edged up by just 4,000 to 353,000 from a pandemic low 349,000 a week earlier, the Labor Department reported Thursday. The four-week average fell by 11,500 to 366,500. That’s the lowest since mid-March 2020.

The wave of selling Thursday affected a wide swath of stocks. Microsoft fell 1% and Western Digital slid 4.5%. Dollar Tree led the decline among the S&P 500′s consumer discretionary sector, skidding 12.1%, while clothing retailer Gap dropped 4.1%. Citigroup fell 1% and Facebook gave up 1.1%.

Salesforce.com was one of the biggest gainers, rising 2.7% after the company’s quarterly results easily beat analysts’ expectations. The company also raised its full-year outlook.

ASX 200 expected to fall​

The Australian share market looks set to end the week in the red. According to the latest SPI futures, the ASX 200 is expected to open the day 8 points or 0.1% lower.

This follows a poor night on Wall Street, which saw the Dow Jones fall 0.54%, the S&P 500 drop 0.58%, and the Nasdaq tumble 0.64%

 

[bigdog]

https://apnews.com/article/stock-ma...hai-business-f75ea4e25d0491dfb8e5598693339f88

Stocks rally to records amid relief rates will remain low

By STAN CHOE

NEW YORK (AP) — Wall Street rallied to records on Friday after the head of the Federal Reserve said it’s still far from pulling interest rates off the record low that’s helped markets soar, even if it does begin dialing back its support for the economy later this year.

The S&P 500 rose 39.37, or 0.9%, to 4,509.37 to top its prior all-time high set on Wednesday, part of a widespread rally that swept up everything from bonds to gold. The Dow Jones Industrial Average climbed 242.68 points, or 0.7%, to 34,455.80, and the Nasdaq composite gained 183.69, or 1.2%, to 15,129.50.

Stocks have set record after record this year thanks in large part to the Federal Reserve’s massive efforts to prop up the economy and financial markets. But the gains had grown more tentative as the beginning of the end of the Fed’s assistance came into sight, now that the unemployment rate has dropped and inflation has picked up.

In a speech that investors have had circled for weeks, Fed Chair Jerome Powell said that the economy has met one big milestone the central bank had set to slow the $120 billion in bond purchases it’s making each month. That could mean a paring back by the end of the year of the purchases, which are meant to keep longer-term interest rates low and to juice the economy.

But Powell also cited past mistakes where policy makers made premature moves in the face of seemingly high inflation, stressing again that today’s high inflation looks to be only temporary. He also made clear that a slowing of the Fed’s bond purchases doesn’t mean a rise in short-term rates is imminent. That would require the job market and inflation to hurdle “substantially more stringent” tests.

“We have much ground to cover to reach maximum employment,” Powell said.

At the end of Powell’s speech, many investors took it as a sign the Fed will keep supporting the market with low interest rates, which can act like steroids for stocks. In the lingo of Wall Street, it was “dovish” in tone rather than “hawkish,” which would have advocated for a quicker rise in rates.

“He not as much spoke it as he cooed it,” said Ernesto Ramos, U.S. chief investment officer at BMO Global Asset Management. “He was super dovish.”

Stocks of companies whose profits are most closely tied to the economy made the biggest gains following the speech. Smaller companies were particularly strong, with the small-cap Russell 2000 index up 2.9%, more than triple the gain for the big stocks in the S&P 500. They often do best when investors feel more optimistic about lower rates and a stronger economy.

“Markets are loving it,” Ramos said. But he also cautioned that the longer ultralow interest-rate policy helps to prop up the markets, the withdrawal may be worse once it’s finally exhausted.

“It strengthens our view that markets will continue to do well this year,” he said. But “when the accommodation is fully removed, how bad of a hangover will it be? Just like a party, the hangover is less bad if you leave earlier.”

Treasury yields were lower, but only after some swings. After sitting at 1.35% shortly before Powell’s speech, the yield on the 10-year Treasury sank as Powell cited past instances where policy makers prematurely raised interest rates on worries about short-term bursts in inflation, saying “such a mistake could be particularly harmful” now.

Yields later recovered a bit of their drops after Powell said “substantial further progress” has been made on its inflation goals, one of the two milestones needed for the Fed to slow its bond purchases. The other, which focuses on employment, has shown progress, but Powell did not say it had been fulfilled.

The yield on the 10-year Treasury was at 1.30% late Friday, down from 1.34% late Thursday.

Of course, Powell also said that the delta variant of the coronavirus is complicating things, though he still expects improvements to continue.

The faster-spreading delta variant has already slowed some economic activity. A report on Friday showed that consumer spending in the country rose 0.3% in July from June, a sharp slowdown from the prior month’s 1.1% jump. That’s a big deal when consumer spending is the driving force of the U.S. economy, and its growth slowed even though income growth for Americans accelerated to 1.1% last month.

The report also showed that a gauge of year-over-year inflation preferred by the Fed held steady at 3.6% in July, slightly higher than economists expected.

The next date circled on investors’ calendars is in a week, when the government reports how many people businesses hired in August. A strong report could give the Fed even more leeway to begin slowing its bond purchases.

Producers of commodities made the stock market’s biggest jumps as lower yields and a weakening dollar pushed up prices for oil, gold and other raw materials.

Occidental Petroleum leaped 6.9% for the largest gain in the S&P 500, and miner Freeport-McMoRan rose 5.9%.

On the losing end was Peloton Interactive, which tumbled 8.5%. It reported a loss for its latest quarter, cut the price of its most popular product and disclosed that it’s been subpoenaed by the Justice Department and the Department of Homeland Security for documents related to its reporting of injuries associated with its exercise equipment.

Stock markets overseas were mixed.