NYSE Dow Jones finished today at:

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https://apnews.com/article/business...ey-hong-kong-a16451b6c59ac091c97b5301f4d5331a

Stocks end modestly lower after recouping most of early loss

By DAMIAN J. TROISE and ALEX VEIGA

Stocks on Wall Street fell again Monday, though the market ended up bouncing nearly all the way back from an early slide led by technology companies.

A broad wave of selling pulled had the S&P 500 down by 2% in the early going, but a late-afternoon burst of buying left the benchmark index with a loss of just 0.1%. The Dow Jones Industrial Average fell 0.5% after having been down 1.6%, and the tech-heavy Nasdaq eked out a gain of less than 0.1% after having been down 2.7%.

The latest pullback followed a sell-off last week as investors shifted holdings in anticipation that the Federal Reserve will raise interest rates this year, among other moves aimed at lowering inflation. Wall Street is trying to get a better read on when and by how much the Fed will lift rates.

“It has the market a little bit rattled from the uncertainty of it all,” said J.J. Kinahan, chief strategist with TD Ameritrade. “I would expect volatility to continue to stay elevated for the rest of the first quarter, at least, as we continue to grapple with this question.”

The S&P 500 slipped 6.74 points to 4,670.29. The drop extended the index’s losing streak to five days. It’s now about 2.6% below the all-time high it set a week ago.

The Dow fell 162.79 points to 26,068.87, after having been down 591 points in the early going. The Nasdaq rose 6.93 points to 14,942.83, snapping a four-day losing streak. Small company stocks also lost ground. The Russell 2000 fell 8.66 points, or 0.4%, to 2,171.15.

The selling began to lose momentum at the same time as a rise in Treasury yields eased. The 10-year Treasury briefly hit 1.84% before slipping back to 1.76% by late afternoon. That matches where the yield was late Friday.

Early on, when bond yields were rising, technology stocks were the biggest drag on the S&P 500. Higher interest rates make the stocks of expensive tech companies and other pricey growth companies less attractive to investors, which is why the sector has been slipping as bond yields rise. The tech sector has been the biggest weight on the market through January and is coming off of its worst week since October 2020.

Big technology stocks have an outsized influence on the S&P 500 because of their huge size. Coming into the year, the technology sector represented 29.2% of the S&P 500.

Higher interest rates could help corral the high inflation sweeping the world, but they would also mark an end to the conditions that have put financial markets in “easy mode” for many investors since early 2020. The Fed has said it will accelerate the reduction of its bond purchases, which have helped keep interest rates low. The market now puts the chances of the Fed raising short-term rates by at least a quarter point in March at around 78%. A month ago, it was about 36%.

Industrial stocks, banks and a mix of companies that rely on consumer spending accounted for a big share of the S&P 500′s decline Monday. Those losses were kept in check by gains in health care, technology and communication stocks.

A mix of deal news and financial updates moved several large stocks.

Take-Two Interactive, maker of “Grand Theft Auto,” plunged 13.1% for the biggest decline in the S&P 500 after announcing a deal to buy Zynga, which makes “Words With Friends” and “Farmville.” Zynga jumped 40.7%.

Athletic apparel maker Lululemon Athletica fell 1.9% after warning investors that a surge in virus cases hurt its fourth-quarter financial results. Medical products maker and distributor Cardinal Health fell 5.9% after saying that supply chain problems will hurt profits for its medical segment.

Investors have a busy week of economic reports and corporate earnings.

On Wednesday, the Labor Department will release an update on how inflation is impacting prices with its Consumer Price Index for December. The agency will release give investors details on how inflation is impacting businesses with its Producer Price Index for December on Thursday.

On Friday, Citigroup, JPMorgan Chase and Wells Fargo will report their latest quarterly financial results.

ASX 200 expected to fall​

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

Stocks on Wall Street fell again Monday, though the market ended up bouncing nearly all the way back from an early slide led by technology companies. On closing, the Dow Jones was down 0.45%, the S&P 500 down 0.14%, and the Nasdaq trading 0.05% higher.

 

[bigdog]

https://apnews.com/article/coronavi...h-china-asia-0f39358a57737e9ab88cc3f7171eab4c

Stocks shake off an early loss, end higher as tech rebounds

By DAMIAN J. TROISE and ALEX VEIGA

Stocks shook off an early slide and closed higher Tuesday as Wall Street welcomed more modest moves in the bond market after a recent surge in Treasury yields weighed on the market.

The S&P 500 rose 0.9% after having been down 0.7% in the early going. The selling eased by afternoon, with technology stocks reversing course and turning higher. The benchmark index was coming off five straight losses and hadn’t had a winning day since the first trading day of the year, when it set an all-time high.

The Dow Jones Industrial Average rose 0.5% and the tech-heavy Nasdaq rose 1.4%. Smaller company stocks also bounced back, pushing the Russell 2000 1.1% higher.

Bond yields, which have risen sharply since the beginning of the year, edged lower. The yield on the 10-year Treasury fell to 1.74% from 1.77% late Monday. Yields affect interest rates on mortgages and other consumer loans.

“Once rates started to stabilize, it started to put some of the investor fears about rates going up on a one-way train at ease, which then put a little bit of a bid back under technology,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute. “We don’t need rates to go down, we just need them to level off or move at a much slower pace.”

The S&P 500 rose 42.78 points to 4,713.07, and the Dow added 183.15 points to 36,252.02. The Nasdaq rose 210.62 points to 15,153.45, while the Russell 2000 picked up 22.85 points to 2,194. The indexes are all in the red so far this month.

Traders are trying to calibrate how markets and the economy will handle the higher interest rates that are likely on the way from the Federal Reserve this year. That has weighed heaviest on pricey technology stocks, which become less attractive to investors as interest rates rise.

Technology stocks have been choppy since late Monday, when a late-afternoon rally for the sector trimmed much of the broader market’s losses. Apple rose 1.7% and chipmaker Nvidia rose 1.5%.

Communication stocks and a mix of retailers and other companies that rely on direct consumer spending rose. Facebook parent Meta Platforms gained 1.9% and Gap rose 31%.

Energy futures rose. The price of U.S. crude oil jumped 3.8%, helping boost energy stocks. Exxon Mobil rose 4.2%.

Utilities and other investments that are considered less risky fell.

The Fed has said it will accelerate the reduction of its bond purchases, which have helped keep interest rates low. The market now puts the chances of the Fed raising short-term rates by at least a quarter point in March at around 78%. A month ago, it was about 36%.

The central bank is easing up on its support for the U.S. economy and financial markets as businesses and consumers face persistently rising inflation.

Fed Chair Jerome Powell acknowledged Tuesday that high inflation has emerged as a serious threat to the Fed’s goal of helping put more Americans back to work and that the Fed will raise rates more than it now plans if needed to stem surging prices. Powell spoke at a hearing of the Senate Banking Committee, which is considering his nomination for a second four-year term.

The World Bank downgraded its forecast for the global economy, partly blaming supply chain problems that have been fueling inflation. The 189-country, anti-poverty agency forecasts worldwide economic growth of 4.1% this year, down from the 4.3% growth it was forecasting last June. It’s also down from the 5.5% expansion it estimates the global economy tallied in 2021.

Investors will get two key reports on inflation this week from the Labor Department. The consumer price index for December will be released on Wednesday and give update on how inflation is driving the price of goods for consumers. An index based on U.S. wholesale prices in December will be released on Thursday and provide another update on how inflation is affecting costs for businesses.

Wall Street is also watching rising numbers of coronavirus cases globally to gauge the economic impact. China, the world’s second-largest economy, has put a third city on lockdown because of the latest surge.

Major companies, including automakers such as Toyota, had been counting on a recovery in the supply of semiconductor chips and other products from China and the rest of Asia, as vaccinations and other coronavirus prevention efforts has advanced. The recent surge in infections by the omicron variant of coronavirus has shaken such hopes.

ASX 200 expected to rebound​

The Australian share market looks set to rebound on Wednesday following a strong night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 53 points or 0.7% higher this morning.

Stocks shook off an early slide and closed higher Tuesday as Wall Street welcomed more modest moves in the bond market after a recent surge in Treasury yields weighed on the market. On closing, the Dow was up 0.51%, the S&P 500 up 0.92%, and the Nasdaq is trading 1.41% higher.

 

[bigdog]

https://apnews.com/article/business-asia-sydney-tokyo-stock-markets-df4b97e842457eecca61eea8a4d29902

Stocks rise as inflation report keeps rate hikes on track

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street capped a day of wobbly trading with modest gains for stocks Wednesday, as investors weighed the implications of the latest economic snapshot showing rising inflation.

The S&P 500 rose 0.3% after veering between a loss of 0.1% and a gain of 0.8% over the course of the day. The Dow Jones Industrial Average eked out a 0.1% gain, while the Nasdaq composite rose 0.2%.

Investors were focused on a report from the Labor Department, which showed consumer prices jumped 7% last month. That’s the fastest year-over-year pace in the consumer price index in nearly four decades. The sharp increase, which was in line with economists’ forecasts, came a day after Fed Chair Jerome Powell told Congress that the central bank stands ready to raise rates to fight inflation.

“That’s the next (thing) that investors are looking at, trying to figure out what the Fed is really, really going to do and what they really can do,” said Tom Martin, senior portfolio manager with Globalt Investments.

The S&P 500 index rose 13.28 points to 4,726.35. It’s now about 1.5% below the all-time high it set early last week. The Dow gained 38.30 points to 36,290.32. The Nasdaq rose 34.94 points to 15,188.39. The indexes are all on pace for a weekly gain.

The modest gains were led by technology stocks, which have been choppy in recent days. The prospect of higher interest rates tends to make pricey sectors like tech less appealing. Microsoft rose 1% and chipmaker Nvidia rose 0.7%.

A mix of retailers and other companies that rely on direct consumer spending, such as auto companies, also made solid gains. Nike rose 1.3%.

Health care companies were the only laggard among stocks in the S&P 500. Biogen slid 6.7% on news that Medicare is limiting coverage of the biopharmaceutical company’s $28,000-a-year Alzheimer’s drug whose benefits have been widely questioned.

Smaller company stocks lost ground. The Russell 2000 index fell 17.95 points, or 0.8%, to 2,176.06.

Bond yields were mostly stable. The yield on the 10-year Treasury fell to 1.73% from 1.74% late Tuesday.

Wall Street has been closely watching rising inflation to gauge the impact on businesses and consumers, as well as on the Fed’s plan to trim its support for the economy and markets.

The central bank is reducing bond purchases that helped keep interest rates low throughout the virus pandemic. Investors are closely watching to see just how soon the Fed will start raising interest rates to fight inflation.

“We’re in a period where I don’t think we’ve ever been before with the amount of stimulus that was put to work,” said Greg Marcus, managing director of UBS Private Wealth Management. “You can’t have that much of an increase without having inflation ticking up.”

The market now puts the chances of the Fed raising short-term rates by at least a quarter point in March at around 75%. A month ago, it was about 36%.

Wall Street will get another update on rising inflation on Thursday, when the Labor Department releases December results from an index based on U.S. wholesale prices, which shows how inflation is affecting costs for businesses.

Businesses in a wide range of industries have been passing higher costs off to consumers, but many have been warning that they will still feel a financial impact because of higher prices and supply chain problems. Medical products maker Cardinal Health was the latest to issue such a warning earlier this week.

Wall Street will be closely watching the latest round of earnings to see how companies are dealing with inflation. Several airlines and banks this week will be among the first big companies to report their latest financial results.

Delta Air Lines reports its results on Thursday. Citigroup, JPMorgan Chase and Wells Fargo report results on Friday.

ASX 200 expected to edge higher​

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

Wall Street capped a day of wobbly trading with modest gains for stocks Wednesday, as investors weighed the implications of the latest economic snapshot showing rising inflation.

The S&P 500 rose 0.28% after veering between a loss of 0.1% and a gain of 0.8% over the course of the day. The Dow Jones Industrial Average eked out a 0.11% gain, while the Nasdaq composite rose 0.23%.

 

[bigdog]

https://apnews.com/article/coronavi...h-asia-japan-949ef89e648024f197892b2f9f51243a

Tech stocks lead Wall Street lower again, Nasdaq falls 2.5%

By DAMIAN J. TROISE and ALEX VEIGA

Technology companies led a sell-off on Wall Street Thursday that pulled the major indexes into the red for the week.

The S&P 500 fell 1.4% after shedding an early gain of 0.4%. The benchmark index was coming off two days of gains following daily losses since the first day of trading in 2022. The tech-heavy Nasdaq slumped 2.5%. The Dow Jones Industrial Average fell 0.5%.

The selling came as investors gauged company earnings reports and new data pointing to rising prices at the wholesale level. Inflation has been a key focus for investors as they try to gauge how rising prices will impact businesses, consumers and the Federal Reserve’s policy on interest rates in 2022.

“Investors are continuing to be concerned that the worst is yet to be seen in terms of inflation,” said Sam Stovall, chief investment strategist at CFRA.

The S&P 500 fell 67.32 points to 4,659.03, while the Dow slid 176.70 points to 36,113.62. The Nasdaq lost 381.58 points to 14,806.81. The three indexes are each on pace for another weekly loss.

Smaller company stocks also fell. The Russell 2000 slid 16.62 points, or 0.8%, to 2,159.44.

Bond yields mostly edged lower. The yield on the 10-year Treasury slipped to 1.70% from 1.73% from late Wednesday.

The Labor Department on Thursday reported that its producer price index, which measures prices at the wholesale level, surged by a record 9.7% for all of 2021. The increase set an annual record and provides further evidence that inflation is still present at all levels of the U.S. economy. The report follows Wednesday’s release of consumer price data for December, which showed that inflation jumped at its fastest pace in nearly 40 years last month.

“The producer price index figures came in a little bit better than expected, but still very high, and as a result they were disconcerting to investors,” Stovall said.

Wall Street has been closely watching rising inflation to gauge the impact on businesses and consumers, as well as on the Fed’s plan to trim its support for the economy and markets. The central bank is reducing bond purchases that helped keep interest rates low throughout the virus pandemic. Earlier this week, Fed Chair Jerome Powell told Congress that the central bank stands ready to raise rates to fight inflation.

Big technology stocks, which have an outsized influence on the S&P 500 because of their high valuations, accounted for a big share of the decline Thursday. The sector has been slipping in January as investors shift money in anticipation of rising interest rates, which tend to make pricey tech stocks less attractive.

Chipmaker Nvidia fell 5.1% and software maker Adobe fell 2.9%.

“It is a little bit of a confusing narrative for the first two weeks of this year,” said Scott Ladner, chief investment officer at Horizon Investments. “The market is really coming to grips with selling really highly valued, profitless tech names and finding other places to put money.”

Many of the big tech companies with solid revenue and profits, such as Apple and Microsoft, will suffer less than their counterparts that have little revenue, but rosy projections, he said.

Even so, those big tech names also lost ground Thursday. Apple fell 1.9% and Microsoft fell 4.2%.

Health care stocks, communication services firms and a mix of companies that rely on direct consumer spending were among the decliners. Pfizer fell 2%, Facebook parent Meta Platforms dropped 2% and Amazon slid 2.4%.

Industrial companies were among the few gainers. Delta Air Lines rose 2.1% after reporting surprisingly good fourth-quarter financial results. Other airlines also got a boost. American Airlines rose 4.5% and United Airlines rose 3.5%.

Financial stocks were mixed ahead of quarterly report cards Friday from several major banks, including JPMorgan Chase and Citigroup.

Investors are also monitoring how the latest wave of COVID-19 cases affects the global economy. In Asia, the omicron variant has swept across Australia and is gaining ground in other countries despite high vaccination rates, mask requirements and strict border policies.

Japan reported more than 13,000 new infections on Wednesday, the highest level in four months. China, whose zero-COVID policies are being challenged by outbreaks just weeks ahead of the Beijing Winter Games, is testing and in some cases locking down entire cities.

Markets in Asia and Europe ended mixed.

ASX 200 expected to fall​

The Australian share market looks set to end the week in a disappointing fashion. According to the latest SPI futures, the ASX 200 is expected to open the day 18 points or 0.25% lower this morning.

Technology companies led a sell-off on Wall Street Thursday that pulled the major indexes into the red for the week.

The S&P 500 fell 1.4% after shedding an early gain of 0.4%. The benchmark index was coming off two days of gains following daily losses since the first day of trading in 2022. The tech-heavy Nasdaq slumped 2.5%. The Dow Jones Industrial Average fell 0.5%.

 

[bigdog]

https://apnews.com/article/business-asia-tokyo-hong-kong-china-8129d8ff0e459d29a1619b2c1699b312

Stocks end mostly higher, but still log another losing week

By DAMIAN J. TROISE and ALEX VEIGA

A late-afternoon recovery in technology stocks helped erase most of the market’s losses Friday, though it wasn’t enough to keep major indexes from posting their second straight losing week.

The S&P 500 eked out a 0.1% gain in the final minutes of trading after having been down about 1% earlier in the day. The tech-heavy Nasdaq came back from a 0.8% slide to post a 0.6% gain. The Dow Jones Industrial Average fell 0.6%.

The rally in technology stocks, plus gains in energy and other sectors, helped outweigh declines in banks and elsewhere in the market on a day when investors were mainly focused on a mix of company earnings reports and discouraging data on retail sales.

The mixed finish capped a week of choppy trading on Wall Street that deepened the market’s January slump. The benchmark S&P 500, which soared 26.9% in 2021, is now about 2.8% below the all-time high it set on Jan. 3.

“Stocks clearly are off to a slow start year-to-date, but perhaps for good reason,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “There’s perhaps some profit-taking and time needed for digestion following those strong returns, particularly as we’re moving into a new regime of higher inflation and a Federal Reserve that’s less accommodative.”

The S&P 500 rose 3.82 points to 4,662.85, while the Nasdaq gained 86.94 points to 14,893.75. The Dow fell 201.81 points to 35,911.81.

The Commerce Department reported Friday that retail sales sank 1.9% in December after Americans cut their spending in the face of product shortages, rising prices and the onset of the omicron variant.

“That’s a lot of bad things to happen in a short amount of time in one of the strongest retail months of the year,” said Robert Cantwell, portfolio manager at Upholdings.

A wide range of retailers and other companies that rely on direct consumer spending fell following the weak retail sales report. Home Depot fell 3.9% and Whirlpool fell 4.3%.

The disappointing retail report is the latest in a series of economic reports this week that has raised concern about inflation and its impact on businesses and consumer spending.

The Labor Department reported on Wednesday that consumer inflation jumped at the fastest pace in nearly 40 years last month, a 7% spike from a year earlier that is increasing household expenses and biting into wage gains. The government agency also reported on Thursday that prices at the wholesale level surged by a record 9.7% for all of 2021.

Rising prices have been prompting businesses to pass more costs on to consumers. Consumers have been pulling back on spending at department stores, restaurants and online as a result of higher prices and supply shortages.

Businesses are also feeling the impact from inflation. Paint maker Sherwin-Williams fell 2.8% after reporting disappointing fourth-quarter earnings because of raw materials costs and supply chain problems. Boston Beer, which makes Sam Adams beer, slid 8.1% after cutting its earnings forecast because of supply chain problems.

Concerns over persistently rising inflation are also prompting the Federal Reserve to trim its bond purchases and consider raising interest rates earlier and more often than Wall Street had expected less than a year ago.

“Our belief is that the backdrop is still favorable for (stock) prices, but we’re seeing a reset in valuations, and that’s a function of interest rates trending a little higher,” Sandven said.

Bond yields rose. The yield on the 10-year Treasury rose to 1.79% from 1.70% late Thursday.

JPMorgan Chase slumped 6.2% for the biggest decline in the S&P 500 after reporting that its profits fell 14% in the latest quarter from a year earlier as its trading business slumped. Citigroup fell 1.3% after reporting its latest results.

The late burst of buying in technology stocks helped temper the market’s losses. Microsoft rose 1.8%

The price of U.S. crude oil rose 2.1% and helped send energy stocks higher. Marathon Oil rose 4.9%.

Smaller company stocks also bounced back from an early slide. The Russell 2000 index rose 3.02 points, or 0.1%, to 2,162.46.

 

[bigdog]

ASX 200 expected to rise​

The Australian share market looks set to start the week in a positive fashion. According to the latest SPI futures, the ASX 200 is expected to open the day 28 points or 0.4% higher this morning.

This follows a mixed end to the week on Wall Street, which saw the Dow Jones fall 0.55%, the S&P 500 rise 0.1%, and the Nasdaq storm 0.6% higher.

A late-afternoon recovery in technology stocks helped erase most of the market’s losses Friday, though it wasn’t enough to keep major indexes from posting their second straight losing week.

The S&P 500 eked out a 0.1% gain in the final minutes of trading after having been down about 1% earlier in the day. The tech-heavy Nasdaq came back from a 0.8% slide to post a 0.6% gain. The Dow Jones Industrial Average fell 0.6%.

 

[bigdog]

NYSE CLOSED MONDAY JANUARY 17 FOR Martin Luther King, Jr. Day In Europe the Dax rose 0.3% and the FTSE stormed 0.9% higher. https://www.usnews.com/news/busines...ares-mixed-after-china-reports-slowing-growth World Shares Mixed After China Reports Slowing Growth​ World shares are mixed after China reported that its economy expanded at an 8.1% annual pace in 2021, though growth slowed to half that level in the last quarter. By Associated Press By ELAINE KURTENBACH, AP Business Writer BANGKOK (AP) — World shares were mixed on Monday after China reported that its economy expanded at an 8.1% annual pace in 2021, though growth slowed to half that level in the last quarter. The weakness in China's economy toward the end of 2021 is prompting suggestions Beijing should intervene to prop up growth with interest rate cuts or by injecting money into the economy through public works spending. Shortly before the growth data were released, the Chinese central bank announced a rate cut on medium-lending to commercial banks to the lowest level since 2020. “Economic momentum remains weak amid repeated virus outbreaks and a struggling property sector," Julian Evans-Pritchard of Capital Economics said in a commentary. He expects China's policymakers to keep limits on lending relatively tight and control credit growth. “The upshot is that policy easing is likely to soften the economic downturn rather than drive a rebound," he said. Slowing activity in China, the region's biggest economy, can chill growth throughout the region. Lockdowns and other precautions imposed to combat outbreaks of coronavirus can also worsen shortages of key parts and components, adding to difficulties with shipping and supply chains. The Shanghai Composite index gained 0.6% to 3,541.67, while Hong Kong's Hang Seng dropped 0.7% to 24,218.43. South Korea's Kospi sank 1.1% to 2,890.10 after North Korea fired two suspected ballistic missiles into the sea early Monday in its fourth weapons launch this month, South Korea’s military said, with the apparent goal of demonstrating its military might amid paused diplomacy with the United States and pandemic border closures. Germany's DAX gained 0.2% to 15,910.54 and the CAC 40 in Paris also was up 0.2%, at 7,156.53. Britain's FTSE 100 jumped 0.7% to 7,592.79. The future for the S&P 500 picked up 0.2% while that for the Dow Jones Industrial Average edged 0.1% higher. In Asian trading, Tokyo's Nikkei 225 advanced 0.7% to 28,333.52 as the government reported machinery orders rose in November as private investment and manufacturing activity improved during a lull in coronavirus outbreaks. Shipbuilders orders surged 170%. Australia's S&P/ASX 200 climbed 0.3% to 7,417.30. On Friday, the S&P 500 eked out a 0.1% gain, closing at 4,662.85. The tech-heavy Nasdaq surged 0.6% to 14,893.75. The Dow Jones Industrial Average fell 0.6% to 35,911.81. Smaller company stocks also bounced back from an early slide. The Russell 2000 index rose 0.1%, to 2,162.46. A rally in technology stocks, plus gains in energy and other sectors, helped outweigh declines in banks and elsewhere in the market on a day when investors were mainly focused on a mix of company earnings reports and discouraging data on retail sales. The mixed finish capped a week of choppy trading on Wall Street that deepened the market's January slump. The benchmark S&P 500, which soared 26.9% in 2021, is now about 2.8% below the all-time high it set on Jan. 3. The yield on the 10-year Treasury was steady at 1.79%. The price of U.S. crude oil rose 30 cents to $84.12 per barrel in electronic trading on the New York Mercantile Exchange. On Friday, it rose 2.1%, helping to send energy stocks higher. Brent crude added 6 cents to $86.12 per barrel. The U.S. dollar rose to 114.32 Japanese yen from 114.18 yen. The euro climbed to $1.1430 from $1.1417. ASX 200 expected to rise again​ The Australian share market looks set to continue its ascent on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 24 points or 0.3% higher this morning. The US market was closed on Monday for Martin Luther King Jr Day. In Europe the Dax rose 0.3% and the FTSE stormed 0.9% higher.

Monday, January 17

 

[bigdog]

https://apnews.com/article/coronavi...g-kong-seoul-b576ce3d550feb121f806a055d6c64eb

Technology, bank stocks drag Wall St to new low for 2022

By DAMIAN J. TROISE and ALEX VEIGA

Technology companies led a broad sell-off on Wall Street Tuesday as bond yields surged amid renewed jitters that the Federal Reserve will act more aggressively than expected to tackle rising inflation.

The S&P 500 fell 1.8%, with about 90% of the stocks in the benchmark index closing in the red. The Nasdaq, which is heavily weighted with technology stocks, slid 2.6%. The Dow Jones Industrial Average fell 1.5%.

The major indexes’ losses have mounted this month as rising inflation and the virus pandemic’s latest surge cause investors to take caution.

Heightened expectations of a rate hike from the Fed have kept Treasury yields rising. The 10-year Treasury hit 1.87% Tuesday, the highest since January 2020. It was at 1.77% late Friday.

Investors are now pricing in a better than 86% probability that the Fed will raise short-term rates at its meeting of policymakers in March. A month ago, they saw less than a 47% chance of that, according to CME Group.

The 10-year yield “just continues to trudge higher, pricing in a more and more aggressive Federal Reserve,” said Ross Mayfield, investment strategy analyst at Baird. “Until over the weekend, I hadn’t seen any speculation about two rate hikes at the March meeting, and now you’re starting to hear that chatter.”

The S&P 500 fell 85.74 points to 4,577.11, the Dow fell 543.34 points to 35,368.47, and the Nasdaq fell 386.86 points to 14,506.90. The indexes all hit a new low for the year. The Nasdaq has borne the brunt of the losses, shedding 7.3% this month. That puts the index within 2.7% of a correction, Wall Street-speak for when a stock or index falls 10% or more from its last peak. The S&P 500 is down almost 4% for the month after setting an all-time high on the first trading day of the year.

The latest wave of selling comes as Wall Street tries to predict how much the Fed will raise interest rates, and how fast. The central bank has hastened its plan to trim bond purchases and is considering raising interest rates earlier and more often than Wall Street had expected.

The Fed is under pressure to curtail inflation, which jumped last month at its fastest pace in nearly 40 years. At the same time, the job market has bounced back from last year’s brief but intense coronavirus recession, leaving the unemployment rate last month at a pandemic low 3.9%, giving the central bank more leeway to rein in the unprecedented support it’s been providing the economy since the pandemic struck.

While higher rates could help stem the high inflation sweeping the world, they would also mark an end to the conditions that have put financial markets in “easy mode” for many investors since early 2020.

Higher rates also make shares in high-flying tech companies and other expensive growth stocks less attractive. Big technology stocks, which have an outsized influence on the S&P 500 because of their high valuations, have weighed heavily on the market this year as investors shift money in anticipation of the higher rates.

The sector was the biggest drag on the S&P Tuesday. Apple fell 1.9% and chipmaker Nvidia slid 3.9%.

Banks also weighed heavily on the market after Goldman Sachs said its fourth-quarter profit fell by 13% from a year earlier, largely due to the hefty pay packages Goldman is paying staff. Goldman’s results echoed those of JPMorgan and Wells Fargo last week, which also flagged lower profits and higher expenses due to increased employee compensation costs.

Goldman shares slumped 7%, while JPMorgan slid 4.2%. Wells Fargo was down 2.4%.

Small company stocks, a gauge of confidence in economic growth, also lost ground. The Russell 2000 index fell 66.23 points, or 3.1%, to 2,096.23.

Energy futures rose broadly amid supply fears following an attack on an oil facility in the capital of the United Arab Emirates. The price of U.S. crude oil rose 1.9% to $85.43 a barrel, a 7-year high. The rally in oil prices gave some energy stocks a boost. Exxon Mobil rose 1.7%.

Investors returning after U.S. markets were closed Monday for the Martin Luther King Jr. Day holiday also reviewed the latest batch of corporate earnings and deal news Tuesday.

Activision Blizzard surged 25.9% on news of a blockbuster deal. Microsoft, which fell 2.4%, is buying the maker of games like “Call of Duty” and ”Candy Crush” for $68.7 billion.

Investors have a busy week of earnings reports ahead. A key focus will be on how companies in different industries are handling persistent supply chain issues. Many companies have already warned about the impact on their finances and operations, despite raising prices on consumer goods to offset the impact.

Bank of America, UnitedHealth and United Airlines report results on Wednesday. American Airlines, Union Pacific and Netflix report their results on Thursday.

ASX 200 expected to sink​

The Australian share market looks set to sink notably lower on Wednesday after Wall Street returned from the Martin Luther King Jr holiday in terrible form. According to the latest SPI futures, the ASX 200 is expected to open the day 74 points or 1% lower this morning.

Technology companies led a broad sell-off on Wall Street Tuesday as bond yields surged amid renewed jitters that the Federal Reserve will act more aggressively than expected to tackle rising inflation.

The S&P 500 fell 1.84%, with about 90% of the stocks in the benchmark index closing in the red. The Nasdaq, which is heavily weighted with technology stocks, slid 2.6%. The Dow Jones Industrial Average fell 1.51%. The Nasdaq drop does not bode well for tech shares on Wednesday!

 

[KevinBB]

That puts the index within 2.7% of a correction, Wall Street-speak for when a stock or index falls 10% or more from its last peak.

I reckon that the NASDAQ index is already in correction.

KH

 

[sptrawler]

Is this the start of the correction, or just another speed bump?

 

[KevinBB]

Is this the start of the correction, or just another speed bump?

Don't know. I don't predict, just act on what is happening.
KH

 

[CityIndex]

Is this the start of the correction, or just another speed bump?

It’s tough to say whether the market will bounce from here, or if it needs to complete a larger correction before it can rally. Direction over the coming weeks will likely depend on how the yield curve shifts based on trader’s expectations in the lead-up to the next Fed meeting.

This round of earnings reports could also have a strong influence on the market. Investors will most probably need to see continued growth from last quarter, as well as strong guidance for 2022, in order to put more money into equities.

All trading carries risk, and it rarely pays to try and predict the market, especially with so many factors in play, so it’s important to keep a close eye on how things develop before making any decisions.

 

[sptrawler]

It’s tough to say whether the market will bounce from here, or if it needs to complete a larger correction before it can rally. Direction over the coming weeks will likely depend on how the yield curve shifts based on trader’s expectations in the lead-up to the next Fed meeting.

This round of earnings reports could also have a strong influence on the market. Investors will most probably need to see continued growth from last quarter, as well as strong guidance for 2022, in order to put more money into equities.

All trading carries risk, and it rarely pays to try and predict the market, especially with so many factors in play, so it’s important to keep a close eye on how things develop before making any decisions.

Yes I think there is a certain amount of euphoria at the moment, where everybody thinks nothing can burst this bubble, from my experience that is around the time it actually does burst.
Will interest rate rises be the trigger, or is that already factored in to the market? Time will tell.

 

[bigdog]

https://apnews.com/article/coronavi...a-motor-corp-5bcaa3ef6658c5ded7aa20dd775d7283

Stocks extend 2022 losses as investors brace for rate hikes

By DAMIAN J. TROISE

Stocks closed broadly lower on Wall Street Wednesday and deepened the weekly losses for major indexes following another choppy day of trading.

The major indexes bounced between gains and losses throughout the day, with technology stocks again giving direction to the broader market. The sector has triggered much of the choppiness in the market as investors shift money in expectation of rising interest rates. Higher rates make shares in high-flying tech companies and other expensive growth stocks relatively less attractive.

“We’ve seen some givebacks from the returns we got last year,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “What we’re seeing is that the market is resetting now.”

The S&P 500 fell 44.35 points, or 1%, to 4,532.76, with 77% of stocks in the benchmark index losing ground. The only sectors that closed with gains were utilities and household goods makers, signaling a shift to less risky investments for traders.

The Dow Jones Industrial Average fell 339.82, or 1.2%, to 35,028.65.

The tech-heavy Nasdaq fell 166.64, or 1.1%, to 14,340.26. The index is now more than 10% below the all-time high it set on Nov. 19, a fall which is commonly considered a correction.

Technology giant Apple shed 2.1% and chipmaker Nvidia fell 3.2%.

Every major index set new lows for the year for the second day in a row.

Small company stocks, a gauge of confidence in economic growth, fell more than the rest of the market. The Russell 2000 index fell 33.44 points, or 1.6%, to 2,062.78.

Gold prices, which often rise when investors are nervous about risks in the broader market, gained 1.6%.

Bond yields fell. The yield on the 10-year Treasury fell to 1.85% from 1.87% late Tuesday.

Stocks have slid in January as investors gauge how rising inflation will impact businesses and consumers, along with the Federal Reserve’s next move on interest rate policy.

Investors are busy reviewing the latest round of corporate earnings. Health insurer UnitedHealth Group rose 0.3% after reporting encouraging financial results. Bank of America rose 0.4% after reporting a jump in profits that beat analysts’ forecasts.

Household and consumer goods company Procter & Gamble rose 3.4% after also reporting strong financial results. The maker of Dawn dish detergent and other products reported strong results as it passed along higher costs to consumers.

Outside of earnings, Ford slumped 7.9% following news that it’s recalling about 200,000 cars in the U.S. to fix a problem that can stop the brake lights from turning off.

Wall Street is closely watching the latest round of results to gauge whether inflation is cutting into profit margins for companies and to see whether consumers are accepting the higher prices without cutting back on spending. Demand for goods has outpaced companies’ capacity to make and supply products, which has caused supply chain problems and raised raw materials costs.

Economists expect inflation to remain high until those supply chain issues are solved and consumer demand is tempered. Meanwhile, the Federal Reserve is speeding up its withdrawal of support for markets and the economy. The central bank is likely to raise interest rates earlier and more often than had been expected to fight rising inflation.

As of late Tuesday, investors were pricing in a better than 86% probability that the Fed will raise short-term rates at its meeting of policymakers in March. A month ago, they saw less than a 47% chance of that, according to CME Group.

More big company earnings are on tap for Wall Street on Thursday. American Airlines, Union Pacific, CSX and Netflix will all report their latest financial results.

ASX 200 expected to rise​

The Australian share market looks set to edge higher on Thursday despite declines on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 20 points or 0.3% higher this morning.

Stocks closed broadly lower on Wall Street Wednesday and deepened the weekly losses for major indexes following another choppy day of trading. The major indexes bounced between gains and losses throughout the day, with technology stocks again giving direction to the broader market.

On Wall Street closing, the Dow Jones was down 0.96%, the S&P 500 down 0.97%, and the Nasdaq had fallen 1.15%.

 

[bigdog]

https://apnews.com/article/joe-bide...hanghai-asia-4a90ec3e4fb03856f43c2eac7ebb9143

Stock losses mount as investors eye earnings, inflation

By DAMIAN J. TROISE

A late-afternoon sell-off wiped out gains for stocks on Wall Street Thursday and sent major indexes deeper into losing territory for the year.

The sharp about-face for the broader market was once again directed by technology stocks, which have been behind choppy trading throughout the week. As investors prepare for higher interest rates, shares in pricey tech companies and other expensive growth stocks look relatively less attractive.

The S&P 500 fell 50.03 points, or 1.1%, to 4,482.73, with nearly 85% of stocks in the index falling. The benchmark index closed at a three-month low after having been up as much as 1.5% earlier in the day.

The Dow Jones Industrial Average fell 313.26 points, or 0.9% to 34,715.39.

The Nasdaq fell 186.23 points, or 1.3%, to 14,154.02. The index’s losses in recent months had by Wednesday left it in what Wall Street considers a market correction, or 10% below its peak.

Apple fell 1% and chipmaker Nvidia shed 3.7%.

A mix of retailers and communications stocks also fell. Investors reversed course from earlier in trading and shifted money back toward safe-play investments. Utilities, which are considered less-risky, were the only sector within the S&P 500 that eked out gains.

Bond yields fell. The yield on the 10-year Treasury fell to 1.81% from 1.82%.

Stocks are headed for weekly losses in what has so far been a losing month for every major index.

“The backdrop of higher rates and slowing growth is a serious concern, but so are the number of stocks, especially in the Nasdaq, making new 52-week lows,” said Sean Bandazian, senior investment analyst at Cornerstone Wealth. “There are a lot of broken trends out there that could make finding a bottom in the near term a problem.”

The downturn follows a strong 2021 where the S&P 500 gained 26.9%. Investors may be resetting their expectations moving ahead, said Mark Hackett, chief of investment research at Nationwide.

“Investors are starting to get more realistic about the way the world is going to look going forward,” he said.

The Labor Department gave Wall Street a disappointing update on the labor market with its weekly unemployment report. The number of Americans applying for unemployment benefits rose to the highest level in three months as the fast-spreading omicron variant continued to disrupt the job market.

The job market has had a rocky recovery from the virus pandemic. The unemployment rate fell last month to a pandemic low 3.9%.

Employment data was also closely watched by investors trying to gauge how it would effect the Federal Reserve’s decision to ease up on support for the markets and economy. The central bank made it clear early in the pandemic that it was basing much of its support on how quickly employment recovers.

The Fed is now expected to raise interest rates earlier and more often in order to fight rising inflation that threatens to derail a further economic recovery. Supply chain problems and higher raw materials costs have prompted businesses to raise prices on finished goods and economists are concerned that consumers will eventually grow tired of paying higher prices and cut their spending.

Companies are reminding investors that supply chain problems are still weighing on operations. Recent inflation reports have been worrisome, while economic data on retail sales has also disappointed.

“These are all the things that are justifying some of the sloppiness we’re starting the year with,” Hackett said.

The latest round of corporate earnings is also giving investors a clearer picture of where Americans are spending money and how inflation is impacting the economy.

American Airlines fell 3.2% and United Airlines slipped 3.4% after warning investors that the latest surge in COVID-19 cases will hurt their finances early in 2022. Both airlines reported losses for the fourth quarter, though they were smaller than analysts’ expected.

Aluminum products maker Alcoa jumped 2.7% after reporting strong fourth-quarter financial results as prices for commodities rose. Insurer Travelers rose 3.2% after handily beating analysts’ financial forecasts.

Peloton shares lost about a quarter of their value after CNBC reported the company is temporarily halting production of its treadmills and exercise bikes. The business news network said it reviewed internal Peloton documents that indicated demand for the company’s connected fitness equipment had fallen sharply because of pricing and competition. Peloton shares soared as people exercised at home in the first year of the pandemic, but have fallen 85% since closing at an all-time high of $167.42 on Jan. 13, 2021. On Thursday, its shares lost 23.9% to $24.22.

ASX 200 expected to fall​

The Australian share market looks set to end the week in a disappointing fashion. According to the latest SPI futures, the ASX 200 is expected to open the day 20 points or 0.3% lower this morning.

A late-afternoon sell-off wiped out gains for stocks on Wall Street Thursday and sent major indexes deeper into losing territory for the year.

The sharp about-face for the broader market was once again directed by technology stocks, which have been behind choppy trading throughout the week. As investors prepare for higher interest rates, shares in pricey tech companies and other expensive growth stocks look relatively less attractive.

The S&P 500 fell 50.03 points, or 1.1%, to 4,482.73, with nearly 85% of stocks in the index falling. The benchmark index closed at a three-month low after having been up as much as 1.5% earlier in the day.

 

[sptrawler]

Is this the start of the correction, or just another speed bump?

That was two days ago and it is starting to smell like a correction IMO

 

[bigdog]

ALMOST A SEA OF READ

https://apnews.com/article/coronavi...cial-markets-45eee007ef7ab4384407c78d82287b4a

Stocks extend losses for third week; Netflix plunges

By DAMIAN J. TROISE

Stocks capped another day of losses on Wall Street Friday with the worst weekly drop for the S&P 500 since the start of the pandemic.

Stocks have been falling amid concerns about rising inflation and the Federal Reserve’s plan to raise interest rates from historic lows to try and curtail inflation. Low rates helped support the broader market as the economy absorbed a sharp hit from the pandemic in 2020 and then recovered over the last two years.

The S&P 500 fell 84.79 points, or 1.9%, to 4,397.94. The benchmark index has now slipped three weeks straight and the latest weekly loss is its worst since March of 2020.

The Dow Jones Industrial Average fell 450.02 points, or 1.3%, to 34,265.37 and also fell for its third straight week.

The tech-heavy Nasdaq fell 385.10, or 2.7%, to 13,768.92 and has been hit particularly hard by expectations for higher interest rates. As investors prepare for higher interest rates, shares in pricey tech companies and other expensive growth stocks look relatively less attractive. The index has fallen for four straight weeks and losses in recent months had by Wednesday left it in what Wall Street considers a market correction, or 10% below its peak.

The Nasdaq is now down 14.3% from its record high set on Nov. 19.

Technology stocks have been directing, and often abruptly redirecting, momentum in the market throughout the week.

“The market is working through digestion of how much monetary policy change will occur over the course of 2022,” said Bill Northey, senior investment director at U.S. Bank Wealth Management.

Technology and communications stocks were among the biggest drags on the market.

Streaming video service Netflix plunged 21.8% after it delivered another quarter of disappointing subscriber growth. Disney, which has also been trying to grow its subscriber base for its streaming service, fell 6.9%.

A mix of retailers, travel-related companies and other companies that rely on direct consumer spending also fell.

Bond yields fell significantly. The yield on the 10-year Treasury fell to 1.76% from 1.83% late Thursday. The drop weighed on bank stocks, which rely on higher yields to charge more lucrative interest on loans.

Household good makers and utilities, which are typically considered less-risky investments, held up better than the rest of the market.

Inflation fears and concerns about the impact of higher interest rates have prompted a cautious shift in the broader market after a solid year of gains in 2021.

Supply chain problems and higher raw materials costs have prompted companies in a wide range of industries to raise prices on finished goods. Many of those companies have warned investors that their profit margins and operations continue feeling the pinch in 2022.

Rising costs have raised concerns that consumers will start to ease spending because of the persistent pressure on their wallets. The latest retail sales data for December was surprisingly disappointing and revealed a decline in sales.

The Fed is now expected to raise interest rates earlier and more often than it had previously signaled in order to fight rising inflation that threatens to derail a further economic recovery. The central bank could begin raising rates as early as March. Investors will be watching the Fed closely when officials meet for their latest policy meeting next week.

Investors have also been busy reviewing the latest round of corporate earnings, which could give them a better sense of how companies are dealing with persistent supply chain problems and higher costs.

Paint and coatings maker PPG Industries fell 3.1% after warning investors that it continues grappling with high raw materials costs and supply chain problems. Surgical device maker Intuitive Surgical fell 7.9% after warning that the focus on COVID-19 cases continues to hurt procedure volumes.

Peloton rose 11.7% after the maker of exercise bikes and treadmills said fiscal second-quarter revenue would meet previous estimates. The stock tanked a day earlier after CNBC reported Peloton was temporarily halting production of exercise equipment to stem a decline in sales.

 

[noirua]

January 21 2022

 

[noirua]

January 21 2022

 

[bigdog]

ASX 200 expected to fall again​

The Australian share market looks set to start the week with another decline. According to the latest SPI futures, the ASX 200 is expected to open the day 49 points or 0.7% lower this morning.

This follows a poor end to the week on Wall Street, which saw the Dow Jones fall 1.3%, the S&P 500 drop 1.9%, and the Nasdaq tumble 2.7%.

Stocks capped another day of losses on Wall Street Friday with the worst weekly drop for the S&P 500 since the start of the pandemic.

Stocks have been falling amid concerns about rising inflation and the Federal Reserve’s plan to raise interest rates from historic lows to try and curtail inflation. Low rates helped support the broader market as the economy absorbed a sharp hit from the pandemic in 2020 and then recovered over the last two years.

The S&P 500 fell 84.79 points, or 1.9%, to 4,397.94. The benchmark index has now slipped three weeks straight and the latest weekly loss is its worst since March of 2020.

The Dow Jones Industrial Average fell 450.02 points, or 1.3%, to 34,265.37 and also fell for its third straight week.