NYSE Dow Jones finished today at:

[bigdog]

ASX Holiday Australia Day

Wednesday 26 January

CLOSED

https://apnews.com/article/stock-market-drop-d1511bdafe7279b263a352a8ab249bc0

Stocks climb back after steep slide on Fed, Ukraine jitters

By DAMIAN J. TROISE and ALEX VEIGA

A volatile day on Wall Street ended Monday with stocks notching modest gains after climbing back from a steep slide that had knocked more than 1,200 points off the Dow Jones Industrial Average.

The late-afternoon comeback pulled the S&P 500 out of so-called correction territory — a drop of 10% or more from its recent high.

The market’s gyration reflected investors’ uncertainty over how aggressive the Federal Reserve’s inflation-fighting measures will be and the possibility of conflict between Russia and Ukraine.

“We’re in this wait-and-see mode, which is almost the most uncomfortable place to be, so I think the market is really grappling with that,” said Lindsey Bell, chief markets and money strategist at Ally Invest.

The S&P 500 ended 0.3% higher after having been down about 4%. The index has come back from a loss that big to notch a gain only three other times in the past. The tech-heavy Nasdaq index rose 0.6% after recovering from a nearly 5% descent.

Early in the day, benchmark stock indexes flirted with near 4-month lows as investors anticipated guidance from the Fed later this week about its plans to raise interest rates to tame inflation, which is at its highest level in nearly four decades.

The Fed’s short-term rate has been pegged near zero since the pandemic hit the global economy in 2020 and that has fueled borrowing and spending by consumers and businesses.

But rising prices at supermarkets, car lots and gas stations are raising concerns that consumers will pare back spending to limit the pressure on their budgets. Companies have warned that supply-chain problems and higher raw materials costs could crimp their profits.

The Fed has kept downward pressure on longer-term interest rates by buying trillions of dollars worth of government and corporate bonds, but those emergency purchases are scheduled to end in March. Nudging rates higher is intended to help slow economic growth and the rate of inflation.

Investors are also keeping an eye on developments in Ukraine. Tensions soared Monday between Russia and the West over concerns that Moscow is planning to invade Ukraine, with NATO outlining potential troop and ship deployments.

The S&P 500 rose 12.19 points to 4,410.13. It’s now 8.1% below the all-time high it set on Jan. 3.

The Dow rose 99.13 points to 34,364.50. The Nasdaq gained 86.21 points to 13,855.13.

Small company stocks also bounced back. The Russell 2000 rose 45.59 points, or 2.3%, to 2,033.51. The index had been down 2.8%.

ASX 200 expected to sink again​

The Australian share market looks set to continue its decline on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 173 points or 2.45% lower this morning.

The late-afternoon comeback pulled the S&P 500 out of so-called correction territory — a drop of 10% or more from its recent high.
The market’s gyration reflected investors’ uncertainty over how aggressive the Federal Reserve’s inflation-fighting measures will be and the possibility of conflict between Russia and Ukraine.

On closing sees the Dow Jones was up 0.29%, the S&P 500 up 0.28%, and the Nasdaq up 0.63%.

 

[bigdog]

ASX Holiday Australia Day

Wednesday 26 January

CLOSED

https://apnews.com/article/stock-financial-market-today-2d5036cff99bc06c6f7adc62369a0003

Stocks end lower on Wall Street after another volatile day

By DAMIAN J. TROISE and ALEX VEIGA

Another volatile bout of trading on Wall Street ended with a broad pullback for stocks Tuesday, as investors grapple with economic red flags and uncertainty over how aggressive the Federal Reserve will be in fighting rising inflation.

Stock indexes fell sharply to start the day, then came well off their lows by late afternoon. Another burst of selling in the final hour of trading pulled them lower again. Technology stocks were the biggest drag on the market.

The S&P 500 fell 1.2% after having been down as much as 2.8%. The benchmark index has been falling steadily all month and is now down 9.2% from the all-time high it set Jan. 3. The Dow Jones Industrial Average slipped 0.2% and the tech-heavy Nasdaq gave up 2.3%.

Higher inflation has been squeezing businesses and consumers, and the Federal Reserve is expected to combat it in 2022 by raising interest rates. Investors fear that the Fed could either be moving too late or could be too aggressive. The central bank issues its latest policy statement Wednesday.

The virus pandemic still hovers over the economy and threatens to crimp progress with every new wave. The International Monetary Fund cited the omicron variant as the reason it has downgraded its forecast for global economic growth this year.

And a potential conflict between Russia and Ukraine threatens to push energy prices even higher while forcing more countries to focus on fighting a war instead of inflation and COVID-19.

Wall Street is dealing with signs of slowing economic growth because of COVID-19 and a Fed that can’t really go back on what it said it would do, said Barry Bannister, chief equity strategist at Stifel.

“The market has come to terms with that and that’s a big deal,” he said. “Fiscal and monetary tightening, together, is tough on financial assets when they’re coming off of a rip-roaring party from stimulus.”

Still, the fact that the major stock indexes came off their lows of the day could be a sign that some investors are betting that a dimmer outlook for economic growth may prompt the Fed to take a more measured approach to raising interest rates.

“Weaker economic growth projections have contributed to investors breathing a sigh of relief that the Fed won’t have to be overly aggressive,” said Sam Stovall, chief investment strategist at CFRA.

The S&P 500 fell 53.68 points to 4,356.45. This week, the index has come within striking distance of entering a “correction,” which among markets watchers means a drop of 10% from a peak.

The Dow fell 66.77 points to 34,297.73. The blue-chip index had been down 818 points in morning trading.

The Nasdaq fell 315.83 points to 13,539.29. The index had initially slumped 3.2%. It entered a correction last week and is now down more than 15% from its high set on Nov. 19.

Small company stocks also lost ground. The Russell 2000 index fell 29.48 points, or 1.5%, to 2,004.03.

Major indexes had a similar start to trading on Monday and were down most of the day before a late buying spree pushed them to a higher close. That rebound may have been just a “head fake,” Bannister said, adding that more declines are likely in store for the market.

Even though the S&P 500 managed to eke out a gain after its roller-coaster ride on Monday, a measure of nervousness on Wall Street known as the VIX index remained high. That suggests stress is continuing to grow in the system, with markets in a “high speed spin cycle,” strategists at UBS wrote in a report.

Futures contracts related to the VIX, meanwhile, indicate investors are preparing for a high level of volatility in the near term but less in ensuing months. That’s a flip from their typical behavior last year.

Technology stocks again led the losses as investors worry about rising interest rates. Higher interest rates tend to make shares in high-flying tech companies and other expensive growth stocks less attractive. Microsoft fell 2.7%.

Retailers and communications companies also fell. Home Depot fell 1.3% and Netflix fell 5.4%. U.S. crude oil prices rose 2.7% and helped send energy stocks higher. Occidental Petroleum jumped 8.1%.

American Express surged 8.9% for the biggest gain in the S&P 500 after the credit card company reported that its fourth-quarter earnings rose 20% from a year earlier.

Bond yields rose. The yield on the 10-year Treasury rose to 1.78% from 1.74% late Monday.

 

[divs4ever]

Investing.com Australia - Financial News, Stock Quotes & Charts

Investing.com Australia serves traders of a wide range of asset classes with real-time charts & quotes along with news and analysis.

au.investing.com

using Investing.com ( the Australian version) i notice the SPI futures are moving around a bit ( currently up 51 points but has been negative at times since midnight )

since Australia doesn't seem to have a PPT ( from memory we rely on circuit-breakers to slow the slide in extreme drops )

i would suggest extra care ( especially when using US futures as an indicator )

 

[bigdog]

ASX Holiday Australia Day was yesterday

https://apnews.com/article/russia-u...ng-kong-asia-043a4f2195d0892fb8e5edded6e4ed86

Stocks fall, yields rise after Fed signals rate hike ‘soon’

By DAMIAN J. TROISE and ALEX VEIGA

An early market rally on Wall Street gave way to a broad slide for stocks and a surge in bond yields Wednesday after the Federal Reserve signaled it plans to begin raising interest rates “soon” to fight a spike in inflation that the central bank says is probably getting worse.

The S&P 500 fell 0.1% after having been up 2.2% earlier in the day. The Dow Jones Industrial Average fell 0.4% after swinging more than 900 points from its high for the day. The Nasdaq ended little changed, shedding most of a 3.4% gain.

Bond yields rose, including the yield on the 10-year Treasury note, which climbed to 1.87% from 1.78% late Tuesday. Yields affect rates on mortgages and other consumer loans.

In a statement issued after its latest policy meeting, the Fed said it “expects it will soon be appropriate” to raise rates. Such a move is expected to happen as soon as March, as half the Fed’s policymakers have expressed a willingness to raise rates by then. The Fed also said it would phase out its monthly bond purchases, which have been intended to lower longer-term rates, in March.

The major stock indexes initially rose after the 2 p.m. Eastern release of the Fed statement, but shed most of their gains as Fed Chair Jerome Powell took repeated questions about how and when the central bank will start letting its balance sheet shrink after buying trillions of dollars of bonds through the pandemic.

The selling accelerated as Powell acknowledged that the high inflation slamming the economy isn’t getting better, which could force the Fed to get even more aggressive about raising interest rates and removing the support it put in pace for markets.

“Since the December meeting, I’d say the inflation situation is about the same but probably slightly worse,” he said. “It hasn’t gotten better. It’s probably gotten just a bit worse, and that’s been the pattern.”

Powell also said that there’s room to raise interest rates without hurting the labor market, and wouldn’t rule out the possibility that it could raise short-term interest rates at any one of its meetings this year or raise by a larger-than-usual amount at any one.

Those comments sent a signal to Wall Street that the Fed may be more hawkish when it comes to tackling inflation, said Willie Delwiche, investment strategist at All Star Charts.

“In the market’s mind, that’s more rate hikes, and while he was clear to say that the economy is strong enough to handle those rate hikes, from a strictly (stock) market perspective, higher rates weigh on expensive stocks,” Delwiche said.

The S&P slipped 6.52 points to 4,349.93. The Dow fell 129.64 points to 34,168.09. The Nasdaq rose 2.82 points to 13,542.12. The indexes are all on pace for weekly losses.

The market had been solidly higher prior to the release of the Fed statement following several days of volatile swings as investors try to gauge whether the Fed will succeed in its new effort to fight inflation. The central bank had been widely expected to continue drawing back its stimulus measures ahead of raising interest rates in the coming months.

Pressure from inflation on businesses and consumers is what is driving the Fed to raise interest rates this year. There was some concern on Wall Street that Powell could suggest that the central bank will raise interest rates this year more than the four times that most economists currently expect.

For nearly two years, investors had poured money into stocks, confident that the Federal Reserve would help keep share prices upright. With that support going away, markets have been hit with a bout of volatility. The S&P 500 is down 8.7% so far this year.

ASX 200 expected to rise​

The Australian share market looks set to rebound on Thursday following a volatile night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 17 points or 0.25% higher this morning.

An early market rally on Wall Street gave way to a broad slide for stocks and a surge in bond yields Wednesday after the Federal Reserve signaled it plans to begin raising interest rates “soon” to fight a spike in inflation that the central bank says is probably getting worse.

The S&P 500 fell 0.1% after having been up 2.2% earlier in the day. The Dow Jones Industrial Average fell 0.4% after swinging more than 900 points from its high for the day. The Nasdaq ended little changed, shedding most of a 3.4% gain.

After storming higher for much of the day, the Dow Jones fell 0.38%, the S&P 500 is dropped 0.15%, and the Nasdaq ended up flat.

 

[bigdog]

https://apnews.com/article/business...yo-hong-kong-7248888c2aaca46544006833ae95a086

Stock give up a rally and end lower as volatility continues

By DAMIAN J. TROISE and ALEX VEIGA

Another volatile day of trading on Wall Street ended Thursday with stocks closing lower after giving up an early rally. The late-afternoon fade extended the market’s losing streak as it closes in on its fourth weekly loss.

Markets are still processing the latest indications from the Federal Reserve a day earlier that the central bank is increasingly concerned about inflation and plans to raise interest rates and take other steps soon to fight it. Investors were encouraged to see strong figures for U.S. economic growth, which showed the biggest climb in GDP last year since 1984.

The S&P 500 fell 0.5%. The benchmark index had been up as much as 1.8% in the early going. The Dow Jones Industrial Average slipped less than 0.1% and the Nasdaq gave up 1.4%. Smaller company stocks fell more than the broader market, sending the Russell 2000 index 2.3% lower.

Stocks have been on a roller-coaster ride throughout the week as investors try to adjust to the idea of rising interest rates after the Fed’s policy of near-zero rates helped boost stock prices for nearly two years.

“I’d kind of characterize this as healthy whiplash,” said Jason Pride, chief investment officer of private wealth at Glenmede. “The market’s seeing the change in terrain and it’s adjusting appropriately; the terrain is going to have higher interest rates.”

The S&P 500 fell 23.42 points to 4,326.51, its third straight decline. The index has notched a gain only five days so far in January. It’s within 10 points of entering a “correction,” meaning a drop of 10% from the all-time high it set Jan. 3.

The Dow fell 7.31 points to 34,160.78. The Nasdaq dropped 189.34 points to 13,352.78. The Russell 2000 fell 45.18 points to 1,931.29.

Companies that rely on consumer spending and banks were among the biggest weights on the S&P 500. Royal Caribbean fell 6.3% and JPMorgan Chase slid 1.8%.

Technology stocks also lost ground. The sector has been a key driver for the broader market’s swings as investors shift money in anticipation of higher interest rates. Pricey tech companies and other growth stocks are viewed as less attractive when interest rates rise. Nvidia fell 3.6%.

Energy and communication stocks made solid gains Thursday. Chevron rose 2% and Netflix jumped 7.5%.

Bond yields fell. The yield on the 10-year Treasury fell to 1.80% from 1.84% late Wednesday.

The U.S. economy expanded 5.7% in 2021, the strongest calendar-year growth since a 7.2% surge in 1984 after a previous recession. It ended the year by growing at an unexpectedly brisk 6.9% annual pace from October through December as businesses replenished their inventories, the Commerce Department reported.

The upbeat report came a day after the Federal Reserve raised some concerns about how quickly it will ease support for markets and the economy. It said it “expects it will soon be appropriate” to raise interest rates, and investors expect the first in a series of rate hikes to happen in March. The Fed also said it would phase out its monthly bond purchases, which have been intended to lower longer-term rates, in March.

The Fed has been monitoring the impact of inflation on businesses and consumers and Fed Chair Jerome Powell acknowledged that the pressure isn’t lessening. That could mean the central bank has to take an even more aggressive approach to raising interest rates and removing the support it put in place for markets.

Businesses from a wide range of industries have been warning investors for months that supply chain problems and higher raw materials costs have hurt operations. Higher prices being passed on to consumers could prompt a spending pullback and hurt economic growth.

Investors are closely watching the latest round of corporate earnings to gauge just how much companies are getting hurt by inflation and how they expect it to impact them moving forward.

The technology sector has been hit particularly hard by supply chain problems with a longstanding computer chip shortage. Semiconductor equipment maker Lam Research fell 6.9% after saying supply chain issues worsened in December. Chipmaker Intel fell 7% after giving investors a weak profit forecast.

The chip shortage continues to hurt the auto industry. Tesla fell 11.6% after telling investors that the shortage will stop the company from rolling out new models in 2022.

Solid earnings did help push shares for many other companies higher. ServiceNow rose 9.1% after the maker of software that automates companies’ technology operations reported strong financial results. Electronic storage maker Seagate Technology rose 7.7% and jeans maker Levi Strauss rose 8.4% after also reporting encouraging financial results.

Every major index is in the red for the year. The S&P 500 is down 9.2%. The downturn is having an impact on initial public offerings after a record 2021, said Matthew Kennedy, senior IPO market strategist at Renaissance Capital.

Three large companies have pulled their IPOs after setting a proposed price, he said, which compares with one postponement during January 2021. Several smaller deals have delayed their offerings.

“The current market volatility makes it nearly impossible to get deals done,” he said.

He also said the shift in Fed policy has spooked investors, particularly for growth stocks, where even a few rate increases can have an impact on the value of future cash flows. He added that the reset for the IPO market could turn out to be healthy in the long term and part of the natural market cycle.

ASX 200 expected to jump​

The Australian share market looks set to end the week in a very positive fashion. According to the latest SPI futures, the ASX 200 is expected to open the day 106 points or 1.6% higher this morning.

Another volatile day of trading on Wall Street ended Thursday with stocks closing lower after giving up an early rally. The late-afternoon fade extended the market’s losing streak as it closes in on its fourth weekly loss

The S&P 500 fell 23.42 points to 4,326.51, its third straight decline. The index has notched a gain only five days so far in January. It’s within 10 points of entering a “correction,” meaning a drop of 10% from the all-time high it set Jan. 3.

The Dow fell 7.31 points to 34,160.78. The Nasdaq dropped 189.34 points to 13,352.78. The Russell 2000 fell 45.18 points to 1,931.29.

It is worth noting, however, that the US market and the SPI futures have been swinging wildly and all this could change come opening time.

 

[bigdog]

https://apnews.com/article/business...tock-markets-ef6bf99b1ef0a2bcda48d9fd0d1bb676

Stocks end a turbulent week with biggest gains of the year

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street ended a volatile week of trading Friday with a late-afternoon buying spree that gave the major stock indexes their biggest gains of the year and snapped a three-week losing streak.

The S&P 500 rose 2.4%, with nearly all of it coming in the last hour of trading. The Dow Jones Industrial Average added 1.7% and the Nasdaq jumped 3.1%.

The strong finish marked a reversal for the indexes, which had all been in the red earlier in the day. The Nasdaq managed the biggest about-face, recovering from a 0.9% deficit. Friday was only the latest in a string of sudden moves up and down this week.

Markets have been jittery as investors try to gauge how aggressively the Federal Reserve will move to ease its historic support for markets and the economy. There is likely going to be more volatility ahead as investors closely watch the impact of interest rate increases on the broader economy and the financial markets.

“I don’t think we’re out of the woods yet in terms of this kind of frenzied market behavior,” said Liz Ann Sonders, chief investment strategist at Charles Schwab.

The S&P 500 rose 105.34 points to 4,431.85. The index’s biggest gain since June 2020 comes late in a week where investors had been monitoring the S&P 500 for what market watchers call a “correction.” That’s when an index sheds more than 10% of its value from a record high. The index is now 7.6% below the latest record reached on Jan. 3.

The Dow gained 564.69 points to 34,725.47, and the Nasdaq rose 417.79 points to 13,770.57. The tech-heavy index got a boost as technology stocks rallied, led by Apple. The iPhone maker jumped 7% after reporting strong financial results. Microsoft rose 2.8%.

Bond yields edged lower. The yield on the 10-year Treasury fell to 1.78% from 1.81% late Thursday.

Investors expect the Fed to start raising interest rates in March and now anticipate five or more hikes of a quarter point each as the most likely path for the central bank this year. The sentiment follows the latest Fed statement and comments from Chair Jerome Powell that inflation is “slightly worse” than it was in December. The Fed also plans to phase out its bond purchases in March and is likely to start reducing the size of its balance sheet at some point, a move that has a similar effect as an increase in rates.

Powell has acknowledged that the high inflation that is squeezing businesses and consumers isn’t loosening its grip and that could force the Fed to act more aggressively about raising interest rates.

Anxiety over rising inflation and how the Fed’s response will affect stock prices has kept investors on edge.

“That’s really where we’ve seen these volatility swings pick up over the course of the last couple of weeks,” said Bill Northey, senior investment director at U.S. Bank Wealth Management. “The market is attempting to diagnose and digest the amount of (Fed) policy adjustment that will be necessary based on an unknown set of factors.”

The latest round of corporate earnings has shown that companies are still feeling the pinch of supply chain problems, raw material costs and other pressures from inflation.

Oreo cookie maker Mondelez fell 1.6% after issuing its latest warning about inflation hurting operations in North America. Computer hard drive maker Western Digital fell 7.3% after giving similarly disappointing updates on pressure from inflation.

Additional government reports are also showing that consumers are facing higher prices and they might be discouraging spending. A measure of prices that is closely tracked by the Fed rose 5.8% last year, the sharpest increase since 1982. The report from the Commerce Department also said that consumer spending fell 0.6% in December, with purchases of cars, electronics, and clothes declining.

Inflation concerns and worries about the impact of rising interest rates converged this week with worries about a potential conflict between Ukraine and Russia that could raise energy prices. A conflict could also distract nations from focusing on the lingering virus pandemic, which continues to threaten economic growth with each wave spiking COVID-19 cases.

 

[bigdog]

ASX 200 expected to fall​

The Australian share market looks set to start the week in the red despite big gains on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 16 points or 0.2% lower this morning.

Wall Street ended a volatile week of trading Friday with a late-afternoon buying spree that gave the major stock indexes their biggest gains of the year and snapped a three-week losing streak.

On Wall Street, the Dow Jones rose 1.65%, the S&P 500 stormed 2.4% higher, and the Nasdaq raced 3.1% higher.

 

[bigdog]

https://apnews.com/article/business-china-asia-sydney-tokyo-29e37ca6be90a406fc1923355ad52a08

Stocks end higher, still log worst month since March 2020

By STAN CHOE and ALEX VEIGA

Stocks notched broad gains Monday, but still posted their worst monthly loss since the early days of the pandemic, as Wall Street closes a tumultuous January wracked by worries that imminent interest-rate hikes will make everything in markets more challenging.

The S&P 500 came back from an early 0.4% dip to close 1.9% higher. Even so, it’s now 5.9% below the all-time high it set four weeks ago. It fell 5.3% in January, its worst month since falling 12.5% in March 2020, when it hit bottom after the pandemic suddenly shut down the global economy.

The Dow Jones Industrial Average rose 1.2% and the Nasdaq composite climbed 3.4%, its biggest single-day gain since early November 2020. Both also ended in the red for January, with the Dow shedding 3.3% and the Nasdaq losing 9%.

Wall Street shook this month as investors try to get ahead of a massive shift in markets, where the Federal Reserve is about to start withdrawing the tremendous stimulus it’s pumped into the economy and markets. The wide expectation is for the Fed to begin raising interest rates in March, among other moves to make borrowing money less easy.

But uncertainty about how sharply and how quickly the Fed will move has helped cause severe swings on Wall Street, not just day-to-day but also hour-to-hour. Morning drops for stocks have quickly given way to sharp losses in the afternoon, and vice versa. On Friday, a sudden upturn in the last hour of trading managed to keep the S&P 500 from logging its fourth weekly loss in a row.

“There’s systematic buying that goes on at the end of a really bad month like January, and that’s certainly taken place over the last day or two,” said Scott Lander, chief investment officer at Horizon Investments.

The S&P 500 rose 83.70 points to 4,515.55. The Dow gained 406.39 points to 35,131.86, after erasing an earlier loss of 229 points. The Nasdaq rose 469.31 points to 14,239.88.

The month’s heaviest losses have concentrated on parts of the stock market seen as the most expensive. Much of the focus has been on high-growth technology stocks, which were absolute stars of the pandemic amid expectations they can grow regardless of the economy.

Tech stocks in the S&P 500 rose 2.7% Monday. The sector ended the month down 6.9%. The monthly drop was far deeper for tech stocks like chipmaker Nvidia, which jumped 7.2% Monday, but posted a 16.7% skid for January.

Any time the Fed raises rates, the stock market has historically had at least some difficulty adjusting. When bonds pay more in interest, investors feel less need to reach for stocks and other riskier investments in search of returns. This time, the Fed is also turning off what’s colloquially known as the “money printer” it’s been using to buy bonds to keep longer-term rates low, and it will likely soon remove some of those extra dollars sloshing around the economy.

The market may have an even tougher time than usual with this rate-hike campaign, because the Fed is going to be moving when growth for the economy and corporate earnings may be set to slow, say strategists at Morgan Stanley.

They pointed to what they see as worrying signs in data about U.S. manufacturing, among other factors.

“We remain sellers of rallies and of the view that S&P 500 fair value remains closer to 4,000 tactically,” the strategists led by Michael Wilson wrote in a report. The S&P 500 closed Friday at 4,431.85.

Others on Wall Street aren’t as pessimistic, though. That’s in large part due to broad expectations that corporate profits will continue to grow. For the full year of 2022, analysts are forecasting S&P 500 earnings will rise 9.5%, according to FactSet.

Stock prices have tended to track corporate profits over the long term. And if profits can continue to rise steadily, that could make up for one of the traditional effects of higher interest rates brought by the Fed: stock investors paying less for each $1 of corporate earnings.

“By now it should be clear that the strong pivot in monetary policy will make this year very different from last year,” Solita Marcelli, UBS Global Wealth Management’s chief investment officer, Americas, wrote in a recent note. “Still, we think investors should not lose sight of the fact that the economy remains strong, which should limit downside from current levels.”

The yield on the 10-year Treasury rose to 1.78% from 1.77% Friday. The two-year yield, which moves more on expectations about what the Fed will do with short-term rates, rose to 1.18% from 1.15%.

The Fed seems to have license to act more aggressively, with inflation at its highest level in nearly 40 years and the job market looking strong.

Investors are debating whether the Federal Reserve will raise short-term interest rates by only a quarter of a percentage point in March, the amount it usually does, or a half-point. They’re also building up their expectations for how much the Fed will increase rates over the course of 2022.

Economists at BNP Paribas recently said the Fed may raise short-term rates by 1.50 percentage points this year from their record low of nearly zero, for example. That would translate to six increases of a quarter percentage point. Before that, it had been forecasting only four increases.

ASX 200 futures flat​

The Australian share market could have a good day on Tuesday despite SPI futures currently pointing to a flat day ahead.

NYSE Stocks notched broad gains Monday, but still posted their worst monthly loss since the early days of the pandemic, as Wall Street closes a tumultuous January wracked by worries that imminent interest-rate hikes will make everything in markets more challenging.

The S&P 500 came back from an early 0.4% dip to close 1.9% higher. Even so, it’s now 5.9% below the all-time high it set four weeks ago. It fell 5.3% in January, its worst month since falling 12.5% in March 2020, when it hit bottom after the pandemic suddenly shut down the global economy.

The Dow Jones Industrial Average rose 1.2% and the Nasdaq composite climbed 3.4%, its biggest single-day gain since early November 2020. Both also ended in the red for January, with the Dow shedding 3.3% and the Nasdaq losing 9%.

 

[bigdog]

https://apnews.com/article/coronavi...cial-markets-63b3b4b7966b672d15e540c042dbca55

A late buying drive pushes stocks higher on Wall Street

By DAMIAN J. TROISE and ALEX VEIGA

A late burst of buying sent stocks higher on Wall Street Tuesday, adding to the market’s recent gains after its January slump.

The S&P 500 gained 0.7%, the Dow Jones Industrial Average rose 0.8% and the Nasdaq composite added 0.7%. Nearly all the gains came in the last hour after the market spent most of the day wavering between gains and losses.

Energy companies led the gainers in the S&P 500. Banks, communication stocks and industrial companies also helped outweigh weakness in other areas of the market.

The stock market is coming off its worst month since early in the pandemic nearly two years ago. Investors have been jittery as they try to determine how upcoming interest rate hikes by the Federal Reserve, intended to squelch inflation, will affect the economy and corporate profits.

While trading remains choppy, the benchmark S&P 500 index is on a three-day winning streak. Investors have mostly priced in a tighter Fed policy and the central bank will likely be reasonable in its pace moving forward, said Jay Hatfield, CEO of Infrastructure Capital Advisors.

“The macro has been priced in and now we’re back to the reality of earnings, which should be constructive,” he said.

The S&P 500 rose 30.99 points to 4,546.54. The index recovered from a 0.7% drop in the early going. It’s now 5.2% below the all-time high it set on Jan. 3.

The Dow gained 273.38 points to 35,405.24, and the Nasdaq rose 106.12 points to 14,346.

Smaller company stocks also outgained the broader market. The Russell 2000 index rose 22.29 points, or 1.1%, to 2,050.74.

Energy stocks made solid gains, led by a 6.4% rise from Exxon Mobil after the company reported a surprisingly good profit in its fourth quarter as demand for oil continues to improve.

Technology stocks bounced back after being down much of the day. The sector has been particularly sensitive to concerns about rising interest rates this year. Higher interest rates tend to make pricey growth stocks, like big tech companies, less attractive for investors. Hewlett Packard Enterprise rose 2.9%.

Utilities and companies that make home goods and personal products were among the decliners. NRG Energy fell 3% and J.M. Smucker fell 1.5%.

UPS surged 14.1% for the biggest gain in the S&P 500 after the package delivery service reported far better results than analysts were expecting. Rival FedEx rose 2.5%.

Investors are reviewing the latest round of earnings, in part to to see how inflation, the virus pandemic and other factors are impacting businesses and their operations moving forward.

The virus pandemic is still a lingering threat and each new variant could bring a surge of cases that threatens businesses and consumer activity.

The economic recovery is being threatened by persistently rising inflation that has raised costs for businesses and consumers. The big fear is that higher prices being passed off to consumers will eventually curtail spending and crimp economic growth.

The Federal Reserve is shifting monetary policy and plans on raising interest rates to fight rising inflation, which will affect stock prices. Ultra-low rates and other stimulus helped markets recover from the initial shock of the coronavirus pandemic, and then supported stunning gains. Investors expect the Fed to start raising interest rates in March, but there is much uncertainty about how sharply and how quickly the Fed will move throughout the year.

Several big companies are on deck for earnings this week. Facebook’s parent, Meta Platforms, will report results on Wednesday, while Amazon and Ford will report their results on Thursday.

Investors are also looking forward to the Labor Department’s employment report for January, which will be released on Friday.

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

A late burst of buying sent stocks higher on Wall Street Tuesday, adding to the market’s recent gains after its January slump.

The S&P 500 gained 0.7%, the Dow Jones Industrial Average rose 0.8% and the Nasdaq composite added 0.7%. Nearly all the gains came in the last hour after the market spent most of the day wavering between gains and losses.

On closing

 

[bigdog]

https://apnews.com/article/business-asia-sydney-tokyo-china-7fa9bf7091f55ddb6488acf89bec74e1

Stocks rise on Wall Street, extending their weekly gains

By DAMIAN J. TROISE and ALEX VEIGA

Another wobbly day of trading on Wall Street ended with more gains for stocks Wednesday, as the latest batch of company earnings reports kept investors in a buying mood.

The S&P 500 rose 0.9% after having briefly dipped into the red in the early going. The Dow Jones Industrial Average rose 0.6% and the Nasdaq added 0.5%. The latest gains have the indexes on pace for solid gains this week.

Traders bid up shares in several companies that reported solid quarterly results, which helped lift the broader market. Google parent Alphabet jumped 7.5% for the biggest gain in the S&P 500 after it said its digital ad business propelled a 36% jump in profit last quarter. Chipmaker Advanced Micro Devices rose 5.1% after it reported surprisingly strong fourth-quarter financial results and gave investors an encouraging sales forecast.

About three-fourths of the companies in the benchmark S&P 500 index rose, led by communication services and technology stocks. Health care companies also accounted for a big share of the gains. Big retailers and other companies that rely directly on consumer spending fell. Amazon slid 0.4% and Gap fell 3.3%.

Most of the companies that have reported results for the last three months of 2021 have delivered earnings and revenue that topped Wall Street’s forecasts, despite the higher costs they face due to rising inflation.

“So, far we’re not seeing the kind of margin pressure that people maybe worried about with rising input costs,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management. “Fundamentally, that’s been a support.”

The S&P 500 rose 42.84 points to 4,589.38. The Dow gained 224.09 points to 35,629.33, and the Nasdaq rose 71.54 to 14,417.55.

Small company stocks bucked the broader market rally. The Russell 2000 index fell 21.22 points, or 1%, to 2,029.52.

Bond yields fell. The yield on the 10-year Treasury fell to 1.77% from 1.80% late Tuesday.

Major stock indexes are on track for solid gains this week, a welcome turnaround from January’s losses. Last month’s slide came as Wall Street faced several threats including rising inflation, the prospect of higher interest rates and COVID-19′s continued drag on the economic recovery.

Inflation remains a key concern as rising costs threaten profit margins and put more pressure on consumer spending. The Federal Reserve intends to raise interest rates to try cooling inflation, which is at a four-decade high. Investors expect the first rate hike in March and at least three more in 2022.

Investors are reviewing the latest round of corporate earnings to gauge the damage that rising costs have had on different industries and how companies will deal with inflation moving forward.

“You’re seeing strong demand in technology from companies continuing to drive productivity and overcome supply challenges and overcome labor shortages,” Hainlin said. “Companies don’t do that if they’re terribly worried about the economy tipping into recession.”

With about 40% of S&P companies having reported quarterly results so far this earnings season, about 64% have posted earnings and revenue that topped analyst estimates, according to S&P Global Market Intelligence.

Marathon Petroleum jumped 6.1% and scientific instrument and laboratory supplies company Thermo Fisher Scientific rose 1.7% after reporting solid financial results.

Some company earnings fell short of Wall Street’s expectations.

PayPal slumped 24.6%, its worst trading day since it split from eBay in 2015 after reporting a weak quarter and subdued guidance.

Facebook parent company Meta Platforms plunged 21.4% in after-hours trading after its latest quarterly earnings fell well short of Wall Street’s estimates.

Several big companies will release earnings later this week, including Amazon.com and Ford.

ASX 200 futures flat​

Another wobbly day of trading on Wall Street ended with more gains for stocks Wednesday, as the latest batch of company earnings reports kept investors in a buying mood.

The S&P 500 rose 0.9% after having briefly dipped into the red in the early going. The Dow Jones Industrial Average rose 0.6% and the Nasdaq added 0.5%. The latest gains have the indexes on pace for solid gains this week.

The Australian share market looks set to have a subdued day on Thursday according to the latest SPI futures, the ASX 200 is expected to open the day flat this morning.

 

[Garpal Gumnut]

That 25% hit to PayPal PYPL will have ramifications.

It has been a weathervane for low value low volume frequent purchases during the pandemic.

gg

 

[bigdog]

https://apnews.com/article/business-china-asia-seoul-earnings-ebfcf4dbee2fff7235cec79328fd879b

A plunge in Facebook’s parent company weighs on tech stocks

By DAMIAN J. TROISE and ALEX VEIGA

A historic plunge in the stock price of Facebook’s parent company helped yank other tech stocks lower on Wall Street Thursday, abruptly ending a four-day winning streak for the market.

The 26.4% wipeout in Meta Platforms, as Facebook’s owner is now known, erased more than $230 billion in market value, easily the biggest one-day loss in history for a U.S. company. The stocks of other social media companies including Twitter and Snap also fell.

Because Meta is valued so highly, a big swing in its stock price can also sink or lift broader market indexes. The S&P 500 fell 2.4%, its biggest drop in nearly a year. The tech-focused Nasdaq composite gave up 3.7%, its biggest loss since September 2020. The Dow Jones Industrial Average, which does not include Meta Platforms, fell 1.5%.

Meta sank after forecasting revenue well below analysts’ expectations for the current quarter following privacy changes by Apple and increased competition from TikTok. It was a disappointment for a company that investors have become accustomed to delivering spectacular growth. Meta also reported a rare decline in profit due to a sharp increase in expenses as it invests in transforming itself into a virtual reality-based company.

The steep drop weighed on fellow social media company Twitter, which fell 5.6%. Snapchat’s parent company Snap sank 23.6% and Pinterest lost 10.3%. Snap soared 54% and Pinterest vaulted 28% in after-market trading after each reported better-than-expected results. Amazon.com jumped 18% in after-hours trading after reporting strong fourth-quarter results despite supply chain snags.

Big technology and communications companies played a big role in driving gains for the broader market throughout the pandemic and much of the recovery in 2021, but the market seems to have shifted, said Brad McMillan, chief investment officer for Commonwealth Financial Network.

“There’s a general sense that what’s been moving the market higher is not going to take us to the next level,” McMillan said. “The question is where is the next growth engine coming from.”

The S&P 500 fell 111.94 points to 4,477.44. The Dow dropped 518.17 points to 35,111.16. The Nasdaq slid 538.73 points to 13,878.82.

Small company stocks also fell. The Russell 2000 index lost 38.48 points, or 1.9%, to 1,991.03.

Communications and technology stocks had some of the biggest losses. The sectors have been behind much of the choppiness in markets since the beginning of the year 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 to investors.

Bond yields rose sharply on Thursday. The yield on the 10-year Treasury note, which is used as a benchmark to set interest rates on mortgages and many other kinds of loans, rose to 1.84% from 1.76% late Wednesday.

Wall Street anticipates the Federal Reserve’s first interest rate hike to come in March and is cautiously watching for how the central bank paces future increases to help fight rising inflation.

“It’s not a perfect path, it’ll be bumpy, but the direction is pretty clear,” said Guy LeBas, chief fixed income strategist at Janney Capital Management.

Inflation will likely persist until supply chains loosen and help ease costs for businesses, while lowering prices for consumers. Still, the Fed needs to convince people that it is taking steps to fight rising inflation.

“The idea is that raising short-term rates reduces the perception that inflation will be higher in the future,” LeBas said. “If the Fed successfully pulls this off then expectations won’t rise.”

In Europe, the Bank of England raised interest rates for the second time in three months, moving more quickly to tame inflation than the Fed and the European Central Bank. Meanwhile, the head of the ECB said record inflation could linger for “longer than expected” and appeared to open the door ever so slightly for a rate increase this year. Stock markets in Europe fell.

ASX 200 expected to tumble
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 0.8% lower this morning.

A historic plunge in the stock price of Facebook’s parent company helped yank other tech stocks lower on Wall Street Thursday, abruptly ending a four-day winning streak for the market.

The S&P 500 fell 111.94 points to 4,477.44 (2.44%). The Dow dropped 518.17 points to 35,111.16 (1.45%). The Nasdaq slid 538.73 points to 13,878.82 (3.74%)

 

[bigdog]

https://apnews.com/article/business-media-asia-social-media-tokyo-4e00533fefd977260ddfc7d624dd1ec8

Stocks mixed, yields fly as jobs data raises rate outlook

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA

Wall Street closed out a mostly upbeat week for stocks Friday with a mixed finish for the major indexes and a surge in Treasury yields after a blowout U.S. jobs report raised investors’ expectations that the Federal Reserve may soon start raising interest rates sharply.

The S&P 500 settled for a 0.5% gain after swinging between a 0.6% drop and a 1.4% increase. The Dow Jones Industrial Average slipped 0.1% after a last-minute burst of selling. The Nasdaq composite rose 1.6%. The three indexes posted a weekly gain for the second week in a row.

The latest monthly jobs data was a key focus for investors. The Labor Department said employers added 467,000 jobs last month, triple economists’ forecasts. Some economists were even expecting a loss of jobs amid January’s surge in coronavirus infections because of the omicron variant.

The stronger-than-expected data seems to lock in the Fed’s pivot toward fighting inflation by raising rates and making other moves that would ultimately act as a drag on markets. A 13.5% gain for online retail giant Amazon after the company delivered a strong earnings report helped lift the S&P 500, even though more stocks fell than rose in the benchmark index.

“Until you get a more set-in-stone picture for what tightening will be from the Fed, you should expect volatility to be similar to where we’ve been the last two weeks,” said Matt Stucky, senior portfolio manager at Northwestern Mutual Wealth.

The S&P 500 rose 23.09 points to 4,500.53, while the Dow slipped 21.42 points to 35,089.74. The Nasdaq gained 219.19 points to 14,098.01, while the smaller stocks in the Russell 2000 rose 11.33 points, or 0.6%, to 2,002.36.

Treasury yields leaped immediately following the jobs report’s release, tracking forecasts that the Fed will hike short-term interest rates more aggressively than earlier expected. The two-year yield, which tends to move with expectations for the Fed’s actions, jumped to its highest level since the start of the pandemic and is more than double what it was two months ago.

The wide expectation is for the Fed to raise short-term rates next month off their record low of nearly zero, with the only question by how much. Friday’s jobs report has investors now pricing in a nearly 32.7% probability of an increase of 0.50 percentage points, instead of the traditional 0.25 points. That’s more than double the probability that Wall Street foresaw a day earlier, according to CME Group.

Any increase would mark an abrupt turnaround from much of the last two years, when ultra-low rates helped prices surge for everything from stocks to cryptocurrencies. Bonds paying more in interest would mean investors feel less need to reach for such risky things for returns.

That’s why Wall Street has been so shaky over the last month, as investors rush to make moves to get ahead of the Fed. On one hand, higher rates will likely mean stock investors pay lower prices for each $1 of profit that a company produces. On the other, stock prices could remain resilient despite that if those corporate profits keep rising.

Stocks seen as the most expensive have taken some of the hardest hits in Wall Street’s reordering. Much of the focus has been on tech and internet stocks that soared through the pandemic on expectations they can continue to grow regardless of the economy.

Even there, uncertainty still reigns as some tech-oriented companies have reported profits that continue to blow past analysts’ expectations, while others like Facebook’s parent company have stumbled.

Amazon joined the list of the former after reporting stronger results for its latest quarter than analysts expected. Because it’s one of the biggest stocks on Wall Street in terms of market value, its movements have an outsized effect on the S&P 500 and other indexes.

Snapchat parent Snap soared 58.8%, and Pinterest gained 11.2% following their own earnings reports.

Facebook’s parent fell another 0.3% a day after erasing more than $230 billion in its market value, easily the biggest one-day loss in history for a U.S. company.

Ford slumped 9.7% and was another one of the heaviest weights on the S&P 500 after it reported weaker revenue and profit for the last quarter than expected.

Shortages of computer chips continue to hurt its auto production. Such supply-chain issues have been at the heart of the high inflation ripping around the world, and increases in prices at the U.S. consumer level are at a nearly 40-year high.

That’s raising the pressure on the Fed to act decisively to rein in inflation. Data on wages within Friday’s jobs report may have upped the pressure.

Average hourly earnings for workers jumped 5.7% in January from a year earlier. That was a faster acceleration from December’s 4.9% rise than economists expected. While such raises are great for workers, higher wages can also feed into longer-lasting inflation than if prices for just gasoline or other commodities were rising.

With the rising expectations for Fed action, the two-year Treasury yield jumped to 1.31% from 1.19% late Thursday. The 10-year yield leaped to 1.92% from 1.82%.

 

[bigdog]

ASX 200 expected to fall​

The Australian share market looks set to start the week in the red despite a positive finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 41 points or 0.6% lower this morning.

Wall Street closed out a mostly upbeat week for stocks Friday with a mixed finish for the major indexes and a surge in Treasury yields after a blowout U.S. jobs report raised investors’ expectations that the Federal Reserve may soon start raising interest rates sharply.

The S&P 500 settled for a 0.5% gain after swinging between a 0.6% drop and a 1.4% increase. The Dow Jones Industrial Average slipped 0.1% after a last-minute burst of selling. The Nasdaq composite rose 1.6%. The three indexes posted a weekly gain for the second week in a row.

 

[bigdog]

https://apnews.com/article/coronavi...h-tokyo-asia-fde6a862e786f0a608defd6775744626

Stocks end another up-and-down day with mixed results

By DAMIAN J. TROISE and ALEX VEIGA

Another wobbly day on Wall Street ended Monday with an uneven finish for the major stock indexes as losses by communication and technology companies kept gains elsewhere in the market in check.

The S&P 500 fell 0.4%, giving back some of its recent gains. The Dow Jones Industrial Average was little changed after wavering between a gain of 0.7% and a loss of 0.3%. The tech-heavy Nasdaq composite fell 0.6%.

The uncertain trading follows weeks of volatility for major indexes as traders try to figure out how stock valuations will be affected by the interest rate hikes looming on the horizon as the Federal Reserves moves to tame inflation.

Wall Street is coming off of two weeks of gains following a January stumble that served partially as a “pressure relief valve,” said Mark Hackett, chief of investment research at Nationwide.

“Some of the emotion that we’ve been dealing with in the first several weeks of the year has started to ease,” he said. “You almost needed that; the expectations had been so high.”

The S&P 500 slipped 16.66 points to 4,483.87. The benchmark index is now 6.5% below the all-time high it set on Jan. 3.

The Dow was essentially flat after inching up 1.39 points to 35,091.13.. The Nasdaq fell 82.34 points to 14,015.67.

Small-company stocks outpaced the broader market. The Russell 2000 rose 10.24 points, or 0.5%, to 2,012.60.

Communication and technology companies were the biggest drag on the S&P 500. Facebook’s parent, Meta, fell 5.1% and Google’s parent company Alphabet fell 2.9%. Microsoft fell 1.6%.

Energy and financial companies made solid gains. Chevron rose 2% and insurer Allstate rose 2.2%.

Travel-related companies also gained ground. Carnival rose 7.8%, Royal Caribbean gained 8.4% and American Airlines added 5%.

Treasury yields were broadly lower. The yield on the 10-year Treasury slipped to 1.92% from 1.93% late Friday.

Investors are still gauging the impact of rising inflation on businesses and consumers while remaining cautious about the Federal Reserve’s plan to fight inflation. Wall Street will get another key update on inflation Thursday with the Labor Department’s report on consumer prices for January.

The Fed plans to raise interest rates to fight inflation. Investors expect the first hikes in March and are wary about the pace and quantity of rate increases in 2022.

Investors have another busy week reviewing the latest corporate report cards. Meat producer Tyson Foods rose 12.2% after reporting strong results.

Several big companies are on deck this week to report their results, including Pfizer on Tuesday and Walt Disney on Wednesday. Twitter and Coca-Cola will report on Thursday.

Outside of earnings, several companies gained ground on buyout news Monday. Spirit Airlines jumped 17.2% after Frontier Airlines’ parent company agreed to buy the carrier in a deal worth $2.9 billion.

Peloton rose 20.9% following reports that the exercise bike and treadmill company is a buyout target for companies including Nike and Amazon. The company has been on a roller-coaster ride since the pandemic began. Its stock surged more than 400% in 2020 as COVID-19 forced lockdowns and shifted the workout trend from the gym to home. It spend 2021 giving back nearly all of those gains as businesses reopened and people started heading back to gyms.

Shares have been choppy this year for Peloton, especially following reports in January that its was temporarily halting production of its connected fitness products amid waning consumer demand. Activist investor Blackwells Capital asked the company to remove CEO John Foley and consider selling the company just a few days after those reports.

ASX 200 futures pointing slightly higher​

The Australian share market is expected to open the day slightly higher this morning following a positive start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 5 points or 0.1% higher.

Another wobbly day on Wall Street ended Monday with an uneven finish for the major stock indexes as losses by communication and technology companies kept gains elsewhere in the market in check.

The S&P 500 fell 0.37%, giving back some of its recent gains. The Dow Jones Industrial Average was little changed after wavering between a gain of 0.7% and a loss of 0.3%. The tech-heavy Nasdaq composite fell 0.58%.

 

[bigdog]

https://apnews.com/article/business...ydney-europe-4817766f7f26047e7b84a574aab2567b

Stocks close higher, bond yields reach pre-pandemic high

By DAMIAN J. TROISE and ALEX VEIGA

Technology companies and banks helped drive stocks higher on Wall Street Tuesday, as the market bounced back from an early slide to more than make up its losses from the day before.

The S&P 500 rose 0.8% after having been down 0.4%. More than three fourths of the stocks in the benchmark index notched gains. The Dow Jones Industrial Average rose 1.1% and the Nasdaq composite gained 1.3%.

Bond yields rose, lifting the 10-year Treasury yield to the highest level since before the pandemic began.

The indexes were all down in early trading but turned solidly higher around midmorning. That turnaround gained momentum after the S&P 500 crossed above 4,500 points, an important “resistance level,” something traders watch for when trying to guess the direction that a stock or index will move next.

“Maybe today was more of a technical move as the market broke above that important resistance level,” said Sam Stovall, chief investment strategist at CFRA.

The S&P 500 rose 37.67 points to 4,521.54. The index is now about 5.7% below the all-time high it set Jan. 3.

The Dow gained 371.65 points to 35,462.78, and the Nasdaq rose 178.79 points to 14,194.45.

Smaller company stocks outpaced the broader market in a potential sign that investors are optimistic about economic growth. The Russell 2000 rose 32.77 points, or 1.6%, to 2,045.37.

The mostly muted trading so far this week follows weeks of volatility for major indexes. Rising inflation and the Fed’s plan to raise interest rates to fight it have been key concerns for investors. Any increase in rates would mark an abrupt turnaround from much of the last two years, when ultra-low rates helped prices surge for everything from stocks to cryptocurrencies.

“We’re in a bit of a holding pattern right now,” said Ross Mayfield, investment strategy analyst at Baird. “A lot of the near-term indigestion is priced in.”

The latest report on consumer prices from the Labor Department on Thursday will give Wall Street another update on just how much inflation is hitting consumers’ wallets. Economists expect a 7.3% rise in inflation in January, which would show that inflation remains at its highest levels in four decades. That could add to concerns over how often the Fed moves to raise rates this year.

Tuesday’s afternoon market rebound could suggest investors are assuming that the consumer price index report will show a smaller-than-expected increase, Stovall said.

“We could see the 10-year yield retrace some of its steps in the days ahead,” he said.

The yield on the 10-year Treasury note rose to 1.96%, its highest level since before the pandemic. The yield, which is used to set interest rates on mortgages and many other kinds of loans, traded at 1.91% late Monday.

Banks, which benefit from higher interest rates and rising bond yields, made solid gains. Bank of America rose 1.8%. Raw materials companies, including steelmakers and paper producers, also gained ground.

Technology companies accounted for a big slice of the S&P 500′s rally. Apple rose 1.8%.

Chipmaker Nvidia rose 1.5% after shaking off an early loss following its announcement that it terminated its plan to buy chip designer Arm from Softbank.

Retailers and other companies that rely on direct consumer spending also helped lift the market. Amazon.com rose 2.2% and Home Depot gained 1.1%.

The price of U.S. crude oil fell 2.1% and weighed down energy stocks. Chevron fell 1.5%.

Peloton jumped 25.3% after announcing a corporate shake-up that included the resignation of its co-founder as CEO and big job cuts.

Investors continued reviewing the latest corporate earnings with mixed reactions. Pfizer fell 2.8% after giving Wall Street a discouraging profit and revenue forecast. Harley-Davidson jumped 15.5% after reporting a surprising fourth-quarter profit.

ASX 200 expected to edge higher​

The Australian share market looks set to rise slightly on Wednesday following a positive night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 5 points higher this morning.

Technology companies and banks helped drive stocks higher on Wall Street Tuesday, as the market bounced back from an early slide to more than make up its losses from the day before.

The S&P 500 rose 0.84% after having been down 0.4%. More than three fourths of the stocks in the benchmark index notched gains. The Dow Jones Industrial Average rose 1.06% and the Nasdaq composite gained 1.28%.

 

[bigdog]

https://apnews.com/article/business...cial-markets-d2a47c67ab10cef0d1ce4cfd05366af0

Stocks rise broadly on Wall Street with more help from tech

By DAMIAN J. TROISE and ALEX VEIGA

Technology companies led a broad rally for stocks on Wall Street Wednesday, pushing the market further into the green for the week.

The S&P 500 rose 1.5%, the Dow Jones Industrial Average gained 0.9% and the tech-heavy Nasdaq composite rose 2.1%. The indexes started off the day headed higher and never slipped into the red, a change from the market’s recent bout of volatile trading.

More than 85% of stocks in the S&P 500 gained ground, with technology and communications stocks powering much of the gains. Microsoft rose 2.2% and Google’s parent company, Alphabet, rose 1.6%.

Bond yields were mixed. The yield on the 10-year Treasury held steady at 1.95%. It’s still the highest it’s been since before the pandemic began.

Investors continued to focus on a mixed batch of company earnings reports as they try to gauge how Corporate America is dealing with higher inflation and persistent global supply chain disruptions.

Of the roughly 60% of S&P 500 companies that have reported results for the last three months of 2021, about 62% delivered earnings and revenue that topped Wall Street’s forecasts, according to S&P Global Market Intelligence.

“Earnings and sales really have come in overall quite nicely relative to expectations at the beginning of this quarter, so that’s a positive force within the market,” said Lisa Erickson, senior market strategist at U.S. Bank Wealth Management.

The S&P 500 rose 65.64 points to 4,587.18. The benchmark index is now about 4.4% below the all-time high it set Jan. 3.

The Dow gained 305.28 points to 35,768.06, while the Nasdaq rose 295.92 points to 14,490.37. The major stock indexes are all on pace for a weekly gain.

Small company stocks also notched gains. The Russell 2000 rose 38.13 points, or 1.9%, to 2,083.50.

Investors are looking closely at company earnings reports to determine how different industries are dealing with persistent supply chain problems. That is one of the factors pushing inflation higher and making operations more costly for companies while making products more expensive for consumers.

Chipotle Mexican Grill jumped 10.2% after beating analyst’s fourth-quarter earnings and revenue forecasts. The company raised menu prices 4% in December as it faced higher costs for beef and labor.

“Overall, companies have found that increasing prices have been more acceptable to their customers than in the past,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute.

Wall Street will get another update Thursday on rising prices when the Labor Department releases its report on inflation for January. Economists are forecasting the report to show inflation rose to a four-decade high of 7.3%.

An unexpectedly smaller rise in prices could be seen as a signal that inflation might be easing and could support markets, though a bigger increase could weigh on stocks.

“People are trying to get in position to where they want to be before this number is released tomorrow,” Wren said.

Persistently rising inflation could increase pressure on the Federal Reserve to speed up plans to raise interest rates in order to fight inflation.

Investors expect the Fed to raise rates at least four times this year, starting next month. They remain concerned that the Fed may need to raise rates more often than that if inflation pressure remains high. As a result, markets have become more volatile as investors shift money around to prepare for an investing environment with higher interest rates following an extended period of ultra-low interest rate policy throughout the pandemic.

Wall Street mostly cheered the latest round of corporate report cards on Wednesday. Taco Bell owner Yum Brands rose 2.2% after reporting strong fourth-quarter revenue. Freight transportation company XPO Logistics rose 8.3% after also reporting solid financial results.

The Walt Disney Co. and Uber rose in after-hours trading after each reported results that topped Wall Street’s estimates.

Drugstore chain CVS fell 5.4% for the biggest decline in the S&P 500 after giving investors a discouraging earnings forecast.

Twitter and Coca-Cola report their results on Thursday.

ASX 200 to open higher​

The Australian share market looks set to have another good day on Thursday following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 0.4% or 30 points higher this morning.

Technology companies led a broad rally for stocks on Wall Street Wednesday, pushing the market further into the green for the week.

The S&P 500 rose 1.45%, the Dow Jones Industrial Average gained 0.86% and the tech-heavy Nasdaq composite rose 2.08%. The indexes started off the day headed higher and never slipped into the red, a change from the market’s recent bout of volatile trading.

 

[bigdog]

https://apnews.com/article/russia-u...iness-health-fd12fec2bd3dd3c39a7314e4620d6545

Stocks slump, bond yields soar after a hot inflation reading

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA

Stocks slumped and bond yields moved sharply higher Thursday after a hot reading on inflation led to greater expectations that the Federal Reserve will have to move forcefully to cool down the economy by raising interest rates.

The hottest inflation reading since 1982 sent the S&P 500 down 1.8%. It also sent Treasury yields jumping, as traders built up bets the Fed may have to apply the brakes to the economy with a bigger-than-usual hike in interest rates next month. The yield on the 10-year Treasury topped 2% for the first time since August 2019, according to Tradeweb.

Volatile trading on has been the norm on Wall Street this year as investors try to gauge how much and how quickly the Fed will raise interest rates to tame surging inflation. The benchmark S&P 500 has fallen three out of the last five weeks and is now 6.1% below the all-time high it set Jan. 3.

More than 85% of the stocks in the S&P 500 closed lower after another day of sharp swings for the indexes. The Dow Jones Industrial Average fell 1.5% and the Nasdaq composite slid 2.1%.

“We caution that markets could remain choppy for the coming months until either inflation stabilizes or the market is comfortable that the Fed is doing enough, but not too much,” said Matt Peron, director of research at Janus Henderson Investors. “The margin of error for the Fed is getting smaller, but our base case is that the markets will stabilize in the second half of this year.”

Inflation has been building over the last year as the economy roared back from the pandemic. Supply shortages and snags in global supply chains also pushed inflation higher, and prices at the consumer level were up 7.5% last month from a year earlier.

A separate report also said fewer workers filed for unemployment last week than expected. That’s encouraging for workers, but it could add more upward pressure on inflation.

The strong jobs market and high inflation have forced the Federal Reserve to make a hard pivot, and it’s said it’s ready to begin removing the massive aid it’s poured into financial markets. Such moves to raise interest rates could rein in inflation, but they would also put downward pressure on all kinds of investments, from stocks to cryptocurrencies.

Following the inflation report’s release, traders see a 95.7% chance that the Fed will raise short-term interest rates by half a percentage point at its meeting next month, double the traditional move. A day earlier, those same traders saw just a 24% probability of such a big move, according to CME Group. Whatever its size, it would be the first increase since 2018.

In the bond market, yields were jumping most for shorter-term Treasurys. The two-year yield leaped to 1.62% from 1.36% late Wednesday, a huge move. That rate tends to track expectations for what the Fed will do.

The 10-year yield also rose, up to 2.05% from 1.93% after earlier topping 2%, but not by as much as the two-year Treasury. It tends to move more on expectations for future inflation and economic growth.

“The fixed-income market itself has been flirting and really trying to break through that psychological 2% level, and it did so today,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors.

The S&P 500 fell 83.10 points to 4,504.08. The Dow slid 526.47 points to 35,241.59. The Nasdaq lost 304.73 points to 14,185.64.

Small company stocks also fell. The Russell 2000 dropped 32.34 points, or 1.6%, to 2,051.16.

Expectations for higher rates helped send several Big Tech stocks lower, including a 2.8% drop for Microsoft. That’s been the usual reaction in the market recently, a mirror image to the preceding years when ultra-low rates helped send tech stocks to the market’s biggest gains.

Energy stocks, which can benefit from higher inflation as energy prices rise, and raw materials companies held up better than other sectors.

The Walt Disney Co. jumped 3.3% for the biggest gain in the S&P 500 after it reported a rebound in theme-park attendance last quarter and said it added more subscribers to its Disney+ streaming service than analysts expected. Both its profit and revenue for the latest quarter topped Wall Street’s forecasts.

If companies can keep growing their profits, their stock prices could continue to rise even if higher interest rates limit how much stock investors are willing to pay for each $1 of earnings.

That’s why one of the big questions on Wall Street is how companies will navigate the higher inflation sweeping the world.

At Coca-Cola Co., Chairman and CEO James Quincey said the company will likely raise some prices to offset rising transportation and commodity costs. But Quincey said the company is treading carefully.

“While it’s easy to respond to inflation by putting up the prices, there is clearly __ as there is broad-based inflation __ going to be a squeeze on real incomes in a number of countries,” Quincey said Thursday during a conference call with investors. “We do not want to lose customers.”

Coca-Cola rose 0.6% after it reported stronger profit for the latest quarter than expected.

Cereal maker Kellogg expects to see double-digit inflation for ingredients as well as packaging cartons and cans this year. The company is also raising prices to offset the impact. Its shares rose 3.1%.

ASX 200 expected to sink​

The Australian share market looks set to end the week deep in the red after the US inflation reading of 7.5% spooked Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 33 points or 0.5% lower this morning.

Stocks slumped and bond yields moved sharply higher Thursday after a hot reading on inflation led to greater expectations that the Federal Reserve will have to move forcefully to cool down the economy by raising interest rates.

The hottest inflation reading since 1982 sent the S&P 500 down 1.8%. It also sent Treasury yields jumping, as traders built up bets the Fed may have to apply the brakes to the economy with a bigger-than-usual hike in interest rates next month. The yield on the 10-year Treasury topped 2% for the first time since August 2019, according to Tradeweb.

More than 85% of the stocks in the S&P 500 closed lower after another day of sharp swings for the indexes. The Dow Jones Industrial Average fell 1.5% and the Nasdaq composite slid 2.1%.

 

[bigdog]

https://apnews.com/article/coronavi...cial-markets-3ee05a78d313c466b6be7139e65557cc

Stocks fall, this time on Ukraine worries, to cap rough week

By DAMIAN J. TROISE and STAN CHOE

Stocks tumbled again Friday, and this time bond yields joined in the swoon as worries about an imminent Russian invasion of Ukraine piled onto Wall Street’s already heavy list of concerns about inflation and interest rates.

The S&P 500 lost 1.9% after the White House encouraged all U.S. citizens to leave Ukraine within the next 48 hours, before possible military action by Russia. The price of oil rose more than 3%.

Stocks took a sudden turn lower in the middle of trading, with losses for the S&P 500 nearly tripling in about half an hour. Similar, knee-jerk swings swept through other markets as investors pulled money out of riskier things like stocks and moved instead toward the safety of bonds and gold.

They’re just the latest sharp veers in what’s already been a tumultuous 2022 for markets. Wall Street has been shaking as it comes to grips with a Federal Reserve forced to aggressively remove the low interest rates that investors love, in order to beat back high inflation.

The S&P 500 fell 85.44 points to 4,418.64 to lock in its first weekly loss in the last three but its fourth in the last six. The Dow Jones Industrial Average lost 503.53, or 1.4%, to 34,738.06, and the Nasdaq dropped 394.49, or 2.8%, to 13,791.15.

Tensions have been simmering for a while about possible military action by Russia, and U.S. national security adviser Jake Sullivan said Friday that the United States did not have definitive information that Russian President Vladimir Putin had ordered an invasion. But he also said that “the threat is now immediate enough that prudence demands that it is the time to leave now” for Americans in the country.

Russia is one of the world’s largest energy producers, and the warnings gave oil prices an immediate jolt. Brent crude, the international standard, rose 3.3% to settle at $94.44 barrel amid the possibility that violence could disrupt supplies. U.S. crude rose 3.6% to settle at $93.10 per barrel.

Prices were already rising before the Ukraine warnings, likely because of a statement from the International Energy Agency that supplies in the oil market are already tight, said Stewart Glickman, energy equity analyst at CFRA.

Gold also rose, gaining nearly $20 in half an hour during the afternoon to top $1,860 per ounce, as investors searched for safety.

A similar rush for stability also drove investors in Treasury bonds, which in turn lowered their yields. The 10-year Treasury yield sank to 1.91% from roughly 2.03% late Thursday.

For bond yields, it’s a sharp U-turn after they steadily marched higher on expectations that the Fed will raise rates more often and by a sharper degree this year than expected. Just a day earlier, the 10-year yield topped 2% for the first time since 2019.

Forecasts for a more aggressive Fed got a huge jolt on Thursday, when a report on inflation came in hotter than expected and showed that it was at a 40-year high. The Fed can slow the economy and inflation by raising interest rates, something it hasn’t done since 2018, but higher rates also put downward pressure on stocks and other investments.

Economists at Goldman Sachs just increased their forecast for rate increases this year by the Fed to seven from five, for example.

Much of the market’s volatility in early 2022 has centered around expectations for what the Fed will do. Besides Thursday’s report on inflation, other flashpoints included the release of the minutes of a Fed policy meeting that said it may reverse its bond-buying program earlier than expected.

The market also shuddered earlier this month after Facebook’s parent company reported surprisingly weak results for its latest quarter. That threatened the belief that continued profit growth can help stocks power through the downward pressures created by higher rates.

Markets will likely remain volatile as the Fed moves closer to raising rates.

“What we’re going through is likely going to continue in the short run,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.

The prospect for violence in Ukraine only adds more uncertainty, though some on Wall Street said it will ultimately likely recede in importance to markets.

“You can’t minimize what today’s news could mean on that part of the world and the people impacted, but from an investment point of view we need to remember that major geopolitical events historically haven’t moved stocks much,” Ryan Detrick, chief market strategist for LPL Financial wrote in a research note.

“For instance, after JFK was assassinated in November 1963 stocks went on one of their best 6 month runs ever. The truth is a solid economy can make up for a lot of sins.”

 

[bigdog]

ASX 200 expected to fall again​

The Australian share market looks set to start the week in the red following a selloff on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 76 points or 1.1% lower this morning.

Stocks tumbled again Friday, and this time bond yields joined in the swoon as worries about an imminent Russian invasion of Ukraine piled onto Wall Street’s already heavy list of concerns about inflation and interest rates.

On Wall Street, the Dow Jones fell 1.4%, the S&P 500 dropped 1.9%, and the Nasdaq sank 2.8% lower.