NYSE Dow Jones finished today at:

[bigdog]

https://apnews.com/article/russia-ukraine-kyiv-business-china-asia-81dc06035e88cfdeb8d31b8ecca54f9d

Stocks end lower, ending market’s worst quarter in 2 years

By DAMIAN J. TROISE and ALEX VEIGA

A late burst of selling left stocks broadly lower on Wall Street Thursday, as the market closed out its worst quarter since the pandemic broke out two years ago.

Despite posting a 3.6% gain for March, a dismal January and February left U.S. indexes lower for the year to date. The S&P 500 ended the day 1.6% lower, bringing its loss since the beginning of the year to 4.9%.

The Dow Jones Industrial Average fell 1.6%, while the Nasdaq composite fell 1.5%. Both indexes also notched gains for March, thanks largely to a market rally in the two weeks heading into this week.

Oil prices fell as President Joe Biden ordered the release of up to 1 million barrels of oil per day from the nation’s strategic petroleum reserve. The move to pump more oil into the market is part of an effort to control energy prices, which are up nearly 40% globally this year.

Wall Street’s downbeat finish to March comes as investors try to navigate the market risks amid surging inflation, geopolitical instability and uncertainty over how aggressively the Federal Reserve will raise interest rates to quash inflation.

“Yesterday’s weakness and some weakness today may be in response to sentiment that’s a little more cautious given the recent strength in the last two weeks and the ongoing uncertainty related to inflation and earnings,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.

The S&P 500 fell 72.04 points to 4,530.41. The Dow fell 550.46 points to 34,678.35, and the Nasdaq slid 221.76 points to 14,220.52.

Smaller company stocks also fell. The Russell 2000 index dropped 20.94 points, or 1%, to 2,070.13.

About 85% of stocks in the benchmark S&P 500 fell. Much of the movement seemed like a “consolidation” for investors, said Scott Wren, senior global market strategist at Wells Fargo Investment Institute.

“This is a little give back today just from the big run that we had, but we’re hanging in here pretty well,” Wren said. Major indexes fell on Wednesday to end a four-day winning streak.

Technology and communications stocks were among the biggest weights on the market. Many of the companies in those sectors have pricey stock values that tend to give the broader market a more forceful push either up or down. Chipmaker Intel fell 3.6%, while Facebook parent Meta Platforms slid 2.4%.

Banks also fell along with bond yields, which forces interest rates on loans lower, making lending less profitable for banks. The yield on the 10-year Treasury slipped to 2.34% from 2.36% late Wednesday. Bank of America fell 4.1%.

U.S. crude oil prices fell 7% and Brent, the international standard, fell 4.9%. The pullback slightly trimmed what have been soaring oil prices amid Russia’s invasion of Ukraine. The conflict has elevated concerns that tightened supplies will only worsen persistently rising inflation that threatens businesses and consumers globally.

An inflation gauge that is closely monitored by the Federal Reserve jumped 6.4% in February compared with a year ago, marking the largest year-over-year rise since January 1982.

Energy prices have been a key factor in pushing inflation higher and Biden’s plan to release more oil into the system comes as little relief is expected from the oil cartel OPEC. The cartel and its allied oil producers including Russia are sticking to a modest increase in the amount of crude they pump to the world, a step that supports higher prices.

Higher prices for everything from energy to food has been a key concern of central banks globally, which are moving to raise interest rates to help temper the impact. Investors have been trying to measure how the economy and companies will fare amid rising inflation, higher interest rates, the war in Ukraine and other factors. That has made for a rocky start to the year.

Investors received a lukewarm update on the job market on Thursday. More Americans applied for unemployment benefits last week, but layoffs remain at historic lows. Wall Street will get a fuller report on Friday when the Labor Department releases employment data for March.

ASX 200 expected to fall​

The Australian share market looks set to end the week on a subdued note following a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 58 points or 0.77% lower this morning.

A late burst of selling left stocks broadly lower on Wall Street Thursday, as the market closed out its worst quarter since the pandemic broke out two years ago.

Despite posting a 3.6% gain for March, a dismal January and February left U.S. indexes lower for the year to date. The S&P 500 ended the day 1.6% lower, bringing its loss since the beginning of the year to 4.9%.

The Dow Jones Industrial Average fell 1.6%, while the Nasdaq composite fell 1.5%. Both indexes also notched gains for March, thanks largely to a market rally in the two weeks heading into this week.

 

[bigdog]

https://apnews.com/article/russia-ukraine-business-china-asia-japan-f846c7233c813fe6effdc85a235d66d2

Stocks edge higher, Treasury yields soar after jobs data

By STAN CHOE and ALEX VEIGA

NEW YORK (AP) — Stocks notched modest gains and Treasury yields soared Friday on Wall Street after a healthy report on the U.S. job market strengthened expectations for coming interest rate hikes.

The S&P 500 rose 0.3% after bouncing between small gains and losses. The benchmark index eked out a slight gain for the week, it’s third straight amid lingering concerns about high inflation, higher interest rates from the Federal Reserve and the economic effects of the war in Ukraine.

The Dow Jones Industrial Average rose 0.4% and the Nasdaq composite rose 0.3%. Small company stocks outgained the broader market, driving the Russell 2000 1% higher.

The sharpest action was again in the bond market, where the yield on the two-year Treasury approached its highest level in more than three years.

Yields jumped after a U.S. government report showed employers added 431,000 jobs last month. That was slightly below economists’ expectations for 477,500, but the report also revised earlier months’ data to reflect more strength. It showed raises for workers accelerated last month but at a slower pace than overall inflation, while the unemployment rate improved to 3.6% from 3.7%.

“This was a solid report,” said Brian Jacobsen, senior investment strategist at Allspring Global Investments.

“You can see the worries about COVID fading. Fewer people are working remotely. Fewer people are saying they can’t work due to the pandemic.”

A separate report showed that U.S. manufacturing is continuing to grow, though at a slower rate than in February.

A strong jobs market and economy give the Federal Reserve more leeway to raise interest rates sharply in order to beat down the high inflation that’s sweeping the country. The Fed has already raised its key overnight rate once, the first such increase since 2018. Following Friday’s jobs report, traders increased bets that the Fed will raise rates at its next meeting by double the usual amount.

Such expectations drive shorter-term Treasury yields in particular, and the two-year yield leaped to 2.45% from 2.28% late Thursday.

The two-year yield again rose above the 10-year yield, which was also climbing, but not as quickly. The 10-year yield rose to 2.38% from 2.33%. On Tuesday, the two-year yield briefly topped the 10-year yield for the first time since 2019, a potentially ominous sign.

Such a flip of the usual relationship between two- and 10-year yields has preceded many recessions in the past, though it hasn’t been a perfect predictor. Some market watchers caution the signal may be less accurate this time, because of distortions in yields caused by extraordinary measures by the Federal Reserve and other central banks to keep interest rates low.

Shares in more than 65% of the companies in the benchmark S&P 500 rose, with health care and communications stocks making up a big share of the gains. A slide in industrial, technology and financial stocks kept the index’s gains in check.

All told, the S&P 500 rose 15.45 points to 4,545.86. The Dow added 139.92 points to 34,818.27, while the Nasdaq rose 40.98 points to 14,261.50. The Russell 2000 gained 20.99 points to 2,091.11.

Shares of GameStop initially rose sharply after it said it plans to split its stock, pending approval from shareholders for an increase in the number of its authorized shares. Such splits can bring down the price of a share of stock, potentially putting it in reach of more smaller-pocketed investors. The stock shed its gains, however, and closed 0.9% lower.

GameStop’s stock has more than doubled since sitting at $78.11 in mid-March. But it’s still well below the $483 peak reached in early 2021 amid the “meme stock” craze. Then, bands of smaller-pocketed investors joined together to pump prices to levels seen as irrational by many professional investors.

Other meme stocks have also shown renewed strength in recent weeks, though AMC Entertainment fell 5.4% Friday.

In overseas markets, European stocks were modestly higher despite a report showing consumer prices in the 19 countries that use the euro currency rose by an annual rate of 7.5% in March, the fifth straight monthly record.

France’s CAC 40 rose 0.4%, Germany’s DAX returned 0.2% and the FTSE 100 in London added 0.3%.

Oil and gas prices had already been rising because of increasing demand from economies recovering from the depths of the COVID-19 pandemic. They jumped higher after Russia, a major oil and gas producer, invaded Ukraine, on fears that sanctions and export restrictions could crimp supplies.

Crude prices slipped modestly on Friday, with a barrel of U.S. oil dipping 1% to settle at $99.27. Early last month, when disruptions to crude supplies were at their height, it briefly touched $130.

Brent crude, the international standard, slipped 0.3% to settle at $104.39 per barrel

 

[bigdog]

ASX 200 expected to rebound

The Australian share market looks set to start the week on a positive note following a solid finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 52 points or 0.71% higher this morning.

On Wall Street, The Dow Jones Industrial Average rose 0.4% and the Nasdaq composite rose 0.3%. Small company stocks outgained the broader market, driving the Russell 2000 1% higher.

 

[bigdog]

NYSE Dow Jones finished today at:

https://apnews.com/article/russia-ukraine-kyiv-business-china-asia-81dc06035e88cfdeb8d31b8ecca54f9d Stocks end lower, ending market’s worst quarter in 2 years By DAMIAN J. TROISE and ALEX VEIGA A late burst of selling left stocks broadly lower on Wall Street Thursday, as the market closed out...

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Stocks close higher, Twitter soars on news of Musk stake​

By DAMIAN J. TROISE and ALEX VEIGA

Stocks shook off a downbeat start to close higher Monday, as big gains by technology and communications companies helped offset losses elsewhere on Wall Street.

The S&P 500 rose 0.8% after having been down 0.2% in the early going. The Dow Jones Industrial Average rose 0.3% and the Nasdaq composite added 1.9%.

Twitter surged 27.1% for the biggest gain in the S&P 500 after the company disclosed that Tesla’s Elon Musk had taken a 9.2% stake in the social media platform. In recent weeks Musk has publicly questioned the company’s commitment to free speech. The gains were a key factor in lifting the broader communications sector and keeping the S&P 500 in the green even as little less than half the companies in the index fell.

The market’s latest moves follow three straight weekly gains by the S&P 500, even as investors grapple with uncertainties stemming from surging inflation, higher interest rates from the Federal Reserve and the economic fallout from the war in Ukraine.

The S&P 500 rose 36.78 points to 4,582.64, the Dow gained 103.61 points to 34,921.88, and the tech-heavy Nasdaq rose 271.05 points to 14,532.55.

Smaller company stocks also gained ground. The Russell 200 index rose 4.33 points, or 0.2%, to 2,095.44.

Apple and other big technology stocks did the heavy lifting Monday, offsetting losses elsewhere. Tech companies, with their pricey stock values, tend to have more weight in pushing the market up or down. Apple rose 2.4% and Microsoft gained 1.8%.

Retailers and other companies that rely on consumer spending also helped lift the market. Tesla rose 5.6%, Amazon added 2.9% and Home Depot closed 1.2% higher.

Investors continue to monitor the conflict in Ukraine, where Russia could face even stricter economic sanctions now that details are emerging of what appear to be deliberate killings of civilians.

The European Union’s foreign policy chief, Josep Borrell, joined a growing chorus of international criticism of the alleged atrocities, saying the 27-country bloc “will advance, as a matter of urgency, work on further sanctions against Russia.”

Russia’s invasion of Ukraine has elevated concerns about rising inflation and the impact on global economic growth. Prices for everything from food to clothing had already been rising and the war has made for even more volatile energy prices.

The price of U.S. benchmark crude oil rose 4% and Brent crude, the international standard rose 3%. Prices are up roughly 40% globally, which has put pressure on costs for gasoline and other goods.

Bond yields mostly gained ground. The yield on the 10-year Treasury rose to 2.41% from 2.38% late Friday. The yield on the two-year Treasury dipped to 2.41% after having moved higher most earlier in the day.

The two-year yield has been hovering at times above the 10-year yield, which is a potentially ominous sign. Such a flip of the usual relationship between two- and 10-year yields has preceded many recessions in the past, though it hasn’t been a perfect predictor. Some market watchers caution the signal may be less accurate this time, because of distortions in yields caused by extraordinary measures by the Federal Reserve and other central banks to keep interest rates low.

Bond yields have been climbing all year as Wall Street prepares higher interest rates. The Federal Reserve has already raised its key overnight rate once, the first such increase since 2018. The central bank is expected to continue raising rates throughout 2022 to help counter the impact from rising inflation.

The Fed is due to release minutes from its last meeting on Wednesday.

Markets in Europe closed higher. Asian markets also rose and Hong Kong’s Hang Seng jumped 2.1% after regulators in Beijing said they plan to revise rules regarding access of overseas regulators to full audits of companies that have shares listed in overseas markets.

ASX 200 expected to rise​

The Australian share market looks set to rise following a strong night in the US. According to the latest SPI futures, the ASX 200 is poised to open the day 39 points or 0.52% higher.

Stocks shook off a downbeat start to close higher Monday, as big gains by technology and communications companies helped offset losses elsewhere on Wall Street.

The S&P 500 rose 0.8% after having been down 0.2% in the early going. The Dow Jones Industrial Average rose 0.3% and the Nasdaq composite added 1.9%.

The latter bodes well for the tech sector today.

 

[bigdog]

Asia stocks decline amid worries over US rate hikes, Russia

Asian stocks have followed Wall Street lower after a Federal Reserve official’s comments fueled expectations of more aggressive interest U.S. rate hikes and the White House announced more sanctions on Russia.

apnews.com

Stocks fall on Wall Street as tech slips, bond yields jump​

By DAMIAN J. TROISE and ALEX VEIGA

Stocks closed lower and bond yields jumped Tuesday as remarks by a Federal Reserve governor fueled expectations on Wall Street that the central bank is prepared to more aggressively raise interest rates and take other steps in a bid to tame surging inflation.

The S&P 500 fell 1.3% after shedding a modest early gain. The Dow Jones Industrial Average fell 0.8% and the Nasdaq slid 2.3%.

The S&P 500 had its first loss in three days. It notched three straight weekly gains coming into this week, during which the market regained some of its footing after a skid in January and February as rising inflation, uncertainty over the Fed’s next interest rate policy moves and the war in Ukraine rattled Wall Street.

That recent market strength may be giving the Fed the leeway to raise interest rates more aggressively, said Zach Hill, head of portfolio management at Horizon Investments.

“Against that backdrop, things have obviously changed and the Fed is willing to ratchet up their hawkishness a bit,” Hill said.

The S&P 500 fell 57.52 points to 4,525.12. The Dow slid 280.70 points to 34,641.18, and the Nasdaq dropped 328.39 points to 14,204.17.

Smaller company stocks fell more than the broader market. The Russell 2000 lost 49.40 points, or 2.4%, to close at 2,046.04.

Weakness from big technology stocks weighed down the broader market the most. Companies in the sector, with their pricey valuations, tend to push the market higher or lower more forcefully. Chipmaker Qualcomm fell 5.4%.

Twitter rose another 2% after disclosing an arrangement with Tesla chief Elon Musk that will give him a board seat but also limit how much of the company he can buy while he’s a director. The company disclosed a day earlier that the mercurial billionaire and Twitter critic had become the company’s largest shareholder.

Treasury yields jumped again as investors brace for more aggressive moves by the Fed to rein in the hottest inflation in 40 years. Fed Governor Lael Brainard said in a speech that it’s “of paramount importance” and that the central bank is set to keep raising short-term interest rates following its March hike, which was its first increase since 2018.

Traders are pricing in a nearly 78% probability the Fed will raise its key overnight rate by half a percentage point at its next meeting in May. That’s double the usual amount and something the Fed hasn’t done since 2000. That helped the yield on the two-year Treasury jump to 2.53% from 2.46%, its highest level since March 2019.

Brainard said the Fed would also soon throw into reverse the massive bond-buying program it engineered through the pandemic to keep longer-term rates low. She said the Fed could decide to roll some bonds off its balance sheet as soon as its May meeting, and “at a rapid pace.”

The 10-year Treasury yield jumped to 2.56%, its highest level since April 2019, from 2.46%.

Higher interest rates tend to most hurt stocks that are seen as the priciest, which puts the focus on big technology and other high-growth stocks. Apple and Tesla were some of the biggest weights on the market.

Wall Street is watching closely for any clues as to how sharply interest rates will rise as inflation persists. More details will be gleaned Wednesday when the Fed releases minutes from its March interest rate meeting.

Russia’s war in Ukraine remains a key focus for Wall Street as the potential for stricter economic sanctions increase. The European Union’s executive branch has proposed a ban on coal imports from Russia in what would be the first sanctions targeting the country’s lucrative energy industry over its war in Ukraine.

The Treasury Department will not allow any Russian government debt payments from accounts at U.S. financial institutions to be made in U.S. dollars, restricting one of the strategies President Vladimir Putin is employing to stave off default.

The stricter sanctions follow mounting evidence Russian soldiers deliberately killed civilians during the conflict.

Wall Street is preparing for the next round of corporate earnings reports in the coming weeks. The results could give a clearer picture of how companies are dealing with the impact from rising inflation.

Carnival rose 2.4% after the cruise line gave investors an encouraging bookings update.

Spirit Airlines jumped 22.4% after JetBlue made a takeover bid for the discount airline. Spirit and rival Frontier Airlines announced in February that had agreed to combine in a $2.9 billion deal to create the nation’s fifth-largest airline by passenger-carrying capacity. Denver-based Frontier would have a controlling share.

ASX 200 expected to sink​

The Australian share market looks set to sink on Wednesday following a poor night in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 54 points or 0.7% lower this morning.

On Wall Street, stocks closed lower and bond yields jumped Tuesday as remarks by a Federal Reserve governor fueled expectations on Wall Street that the central bank is prepared to more aggressively raise interest rates and take other steps in a bid to tame surging inflation.

The S&P 500 fell 1.3% after shedding a modest early gain. The Dow Jones Industrial Average fell 0.8% and the Nasdaq slid 2.3%.

 

[bigdog]

Asian shares track Wall St retreat on interest rate worries

Asian shares have tracked a retreat on Wall Street after details from last month’s Federal Reserve meeting showed the central bank plans to be aggressive in fighting inflation.

apnews.com

Stocks fall, yields rise as Fed details inflation efforts​

By DAMIAN J. TROISE and ALEX VEIGA

Stocks closed lower and bond yields rose on Wall Street Wednesday after details from last month’s meeting of Federal Reserve policymakers showed the central bank intends to be aggressive in its efforts to fight inflation.

The S&P 500 fell 1%, adding to its losses from a day earlier. The Dow Jones Industrial Average dropped 0.4% and the Nasdaq slid 2.2%.

The minutes from the meeting three weeks ago reveal that Fed policymakers agreed to begin cutting the central bank’s stockpile of Treasurys and mortgage-backed securities by about $95 billion a month, starting in May. That’s more than some investors expected and nearly double the pace the last time the Fed shrank its balance sheet.

At the meeting, the Fed raised its benchmark short-term rate by a quarter percentage point, the first increase in three years. The minutes showed many Fed officials wanted to hike rates by an even bigger margin last month, and they still saw “one or more” such supersized increases potentially coming at future meetings.

“Essentially, the Fed has concluded that a good offense is the best defense,” said Sam Stovall, chief investment strategist at CFRA. “We’re likely to experience not only higher short-term interest rates as a result of the Fed’s actions, but also higher long-term rates, which should pressure potential (stock) gains.”

Higher rates tend to reduce the price-to-earnings ratio of stocks, a key valuation barometer. Such a scenario can particularly hurt stocks that are seen as the priciest, which includes big technology companies. That explains why tech stocks were the biggest drag on the benchmark S&P 500 Wednesday. Apple fell 1.8% and Microsoft shed 3.7%.

Communications companies, retailers and others that rely on direct consumer spending also weighed heavily on the index. Amazon fell 3.2% and Facebook parent Meta fell 3.7%.

The S&P 500 ended down 43.97 points to 4,481.15. The Dow slid 144.67 points to 34,496.51, and the tech-heavy Nasdaq lost 315.35 points to 13,888.82.

Smaller company stocks also fell, sending the Russell 2000 index down 29.11 points, or 1.4%, to 2,016.94.

Investors are keenly focused on Fed policy as the central bank moves to reverse low interest rates and the extraordinary support it began providing for the economy two years ago when the pandemic knocked the economy into a recession.

The Fed’s proposed timetable for allowing billions in bonds and mortgage-backed securities to roll off its balance sheet was hinted at on Tuesday in remarks by Fed Governor Lael Brainard, who said the process could start as soon as May and proceed at a rapid pace.

The rapid reduction in the Fed’s balance sheet would help push up longer-term rates, but also contribute to higher borrowing costs for consumers and businesses.

“The reality is we are in uncharted waters here and the Fed has a difficult task in unwinding the tremendous monetary support over the past couple years,” said Charlie Ripley, senior investment strategist at Allianz Investment Management. “Against this backdrop, it is highly conceivable that uncertainty in the path of monetary policy will remain embedded in markets and that is exactly what we have been witnessing with the recent moves in interest rates and risk assets.”

The yield on the 10-year Treasury rose to 2.61% after the release of the minutes. It had been at 2.59% earlier in the day, up from 2.54% late Tuesday. The yield, which is used to set interest rates on mortgages and many other kinds of loans, is the highest it’s been in three years.

Traders are now pricing in a nearly 77% probability the Fed will raise its key overnight rate by half a percentage point at its next meeting in May. That’s double the usual amount and something the Fed hasn’t done since 2000.

“Even though we’ve known about the coming rate hikes, it’s been pretty difficult for long term equity managers across the board,” said William Huston, chief investment officer at Bay Street Capital Holdings.

Inflation is running at a four-decade high and threatens to crimp economic growth. Higher prices on everything from food to clothing have raised concerns that consumers will eventually pull back on spending. Russia’s invasion of Ukraine has added to those worries, pushing energy and commodity prices, including wheat, even higher.

U.S. benchmark crude oil prices fell 5.6% Wednesday, but are more than 30% higher for the year. That has pushed gasoline prices higher, putting more stress on shipping costs, prices for goods and consumers’ wallets.

Treasury Secretary Janet Yellen warned a House panel Wednesday that the conflict will have “enormous economic repercussions in Ukraine and beyond.”

The conflict in Ukraine continued prompting financial pressure against Russia. The White House said Western governments will ban new investmen t in Russia following evidence its soldiers deliberately killed civilians in Ukraine. The U.S. Treasury said President Vladimir Putin’s government will be blocked from paying debts with dollars from American financial institutions, potentially increasing the risk of a default.

European governments have resisted appeals to boycott Russian gas, Putin’s biggest export earner, due to the possible impact on their economies.

Wednesday ended up being a mostly quiet day for company news ahead of the latest round of corporate earnings reports. JetBlue Airways fell 8.7% after offering to buy rival budget airline Spirit for $3.6 billion and break up a plan for Spirit to merge with Frontier Airlines. Spirit fell 2.4%.

ASX 200 expected to fall​

The Australian share market looks set to edge lower on Thursday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 12 points or 0.15% lower this morning.

On Wall Street, stocks closed lower and bond yields rose on Wall Street Wednesday after details from last month’s meeting of Federal Reserve policymakers showed the central bank intends to be aggressive in its efforts to fight inflation.

The S&P 500 fell 1%, adding to its losses from a day earlier. The Dow Jones Industrial Average dropped 0.4% and the Nasdaq slid 2.2%.

 

[bigdog]

Asian shares mostly lower after tepid gains on Wall Street

Asian shares are mostly lower as investors eye the war in Ukraine and what the world’s central banks might do to keep inflation in check.

apnews.com

Tech rebound lifts stocks on Wall Street after early slide​

By DAMIAN J. TROISE and ALEX VEIGA

A late-afternoon rebound led by technology companies helped drive stocks higher on Wall Street Thursday, lifting the market from an early slide.

The S&P 500 rose 0.4%, its first gain after a two-day slump. The benchmark index is still on pace for its first weekly loss in four weeks.

The Dow Jones Industrial Average rose 0.3% and the tech-heavy Nasdaq managed a 0.1% gain. Crude oil prices edged lower and bond yields rose.

The choppy day of trading came as investors weighed the latest updates from the Federal Reserve amid concerns about rising inflation. The central bank has signaled it is prepared to keep raising interest rates and reducing its stockpile of bonds and mortgage-backed securities in order to rein in the highest inflation in 40 years.

“The market is certainly having to digest a Fed that appears to be willing to be very aggressive in battling inflation,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management.

The S&P 500 rose 19.06 points to 4,500.21. The Dow gained 87.06 points to 34,583.57. The blue-chip index had earlier been down 305 points. The Nasdaq added 8.48 points to 13,897.30.

Higher interest rates can make pricey growth stocks, like those of Big Tech companies, look less attractive relative to their earnings. Tech stocks have been among the biggest drags on the market the past couple of days and were weighing down the indexes Thursday morning. But the sector began to recover by midafternoon, helping lift the broader market. Microsoft rose 0.6% and Adobe rose 1.9%.

Health care stocks, retailers and other companies that rely on direct consumer spending also rose after having been down earlier in the day. Pfizer rose 4.3%, Target gained 5.7% and McDonald’s rose 1.2%.

Communication services stocks were among the biggest weights on the market. Twitter fell 5.4%.

Computer and printer maker HP surged 14.8% for the biggest gain in the S&P 500 after Warren Buffett’s Berkshire Hathaway disclosed an 11% stake in the company.

Bond yields rose. The yield on the 10-year Treasury rose to 2.65% from 2.61% late Wednesday.

Every major index is in the red for the week following two big losses that were partly prompted by concerns over the Fed’s shifting policy as it tries to combat inflation.

Minutes from the Fed’s meeting last month showed policymakers agreed to begin cutting the central bank’s stockpile of Treasurys and mortgage-backed securities by about $95 billion a month, starting in May. That’s more than some investors expected and nearly double the pace the last time the Fed shrank its balance sheet.

The central bank is reversing course from low interest rates and the extraordinary support it began providing for the economy two years ago when the pandemic knocked the economy into a recession. It already announced a quarter-percentage point increase and is expected to keep raising rates throughout the year.

Traders are now pricing in a nearly 80% probability the Fed will raise its key overnight rate by half a percentage point at its next meeting in May. That’s double the usual amount and something the Fed hasn’t done since 2000.

Persistently rising inflation has been threatening economic growth. Business have been raising prices on everything from food to clothing and that has put more pressure on consumers. Some companies have been unable to offset the impact from inflation, even with price hikes.

Duncan Hines and Birds Eye brands maker ConAgra cut its financial forecast for the year and said another round of price increases will be needed.

Wall Street is concerned about consumers eventually pulling back on spending as higher prices become too difficult to digest. Price increases were responsible for a rise in consumer spending in March, otherwise, the results revealed a pullback.

A rapid increase in interest rates could also affect corporate earnings growth, though gauging that depends on how aggressive the Fed will be.

“Do we have to take earnings expectations down?” Haworth said. “That’s what the market’s really (been) trying to decide over the last couple of days. Is the aggressiveness of the Fed going to change that equation?”

Russia’s invasion of Ukraine has also added to concerns about inflation. Energy prices have been particularly volatile and pushed gasoline prices higher. U.S. benchmark crude oil prices fell 0.2%, but are still up roughly 31% for the year.

Investors received an encouraging update on the job market Thursday. The Labor Department reported that fewer Americans applied for unemployment benefits last week as layoffs remain at historically low levels.

ASX 200 expected to rebound​

The Australian share market looks set to end the week on a positive note following a solid night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 39 points or 0.5% higher this morning.

In the US, a late-afternoon rebound led by technology companies helped drive stocks higher on Wall Street Thursday, lifting the market from an early slide.

The S&P 500 rose 0.4%, its first gain after a two-day slump. The benchmark index is still on pace for its first weekly loss in four weeks.

The Dow Jones Industrial Average rose 0.3% and the tech-heavy Nasdaq managed a 0.1% gain. Crude oil prices edged lower and bond yields rose.

 

[bigdog]

Wall Street falls to first down week in four on rate worries

Wall Street closed its first losing week in the last four with an up-and-down Friday, as investors brace for the Federal Reserve to tighten the brakes on the economy more aggressively to beat down inflation.

apnews.com

Wall Street falls to first down week in four on rate worries​

By DAMIAN J. TROISE and STAN CHOE

NEW YORK (AP) — Wall Street closed its first losing week in the last four with an up-and-down Friday, as investors brace for the Federal Reserve to tighten the brakes on the economy more aggressively to beat down inflation.

Big tech stocks once again led the market lower, and the S&P 500 fell 11.93 points, or 0.3%, to 4,488.28 after wobbling much of the day. The Dow Jones Industrial Average rose 137.55, or 0.4%, to 34,721.12. The weakness for tech stocks, meanwhile, dragged the Nasdaq composite down 186.30, or 1.3%, to 13,711.00.

For the week, the S&P 500 lost 1.3%. Stocks have slumped as the Federal Reserve swings more aggressively toward fighting inflation by raising short-term interest rates and making other moves. It’s a sharp reversal from keeping rates at record lows to stimulate the economy and carry it through the pandemic.

Investors learned this week that the Fed may hike short-term rates by double the usual amount at several upcoming meetings, and that it came close to doing so last month. The last time that happened was in 2000. The Fed also indicated in the minutes from its last meeting that it’s likely to shrink its massive stockpile of bonds by up to $95 billion monthly, starting as soon as next month.

Altogether, the moves should make it more expensive for U.S. households and businesses to borrow, which in turn would slow the economy and hopefully halt the hottest inflation in 40 years.

Higher rates hurt all kinds of investments, particularly the stocks seen as the most expensive. That’s because higher rates mean better returns for owning relatively safe bonds, which makes investors less willing to pay higher prices for riskier assets like stocks.

That’s why big technology and other high-growth stocks have led the market lower recently. Amazon, Nvidia and Tesla were among the heaviest weights on the S&P 500 Friday, and each dropped at least 2%.

Worries are also rising about the strength of the economy. With the Federal Reserve set to raise rates so aggressively, the fear is it will squeeze the brakes too hard or too quickly and force the economy into a recession. While that’s not the consensus on Wall Street, economists at Deutsche Bank earlier this week said they project a U.S. recession by late next year.

The war in Ukraine has made things more uncertain by threatening to worsen inflation and damage the global economy. Prices for oil, gas and food have been particularly volatile since Russia invaded the country.

A barrel of benchmark U.S. crude rose $2.23 to settle at $98.26 on Friday. It has swung wildly in recent weeks and briefly topped $130 last month. Brent crude, the international standard, added $2.20 to settle at $102.78 per barrel.

Much of the market’s focus has been on the bond market, where expectations for a more aggressive Fed have sent yields to their highest levels in three years. The 10-year yield climbed to 2.71% from 2.65% late Thursday. It was at just 1.51% at the start of the year.

It could be set to rise further as the Fed not only halts but reverses its program to buy trillions of dollars of bonds.

The bond buying helped prices for stocks and other financial assets to soar and markets to stay relatively calm, Chief Investment Strategist Michael Hartnett wrote in a recent BofA Global Research report.

Now the Fed is less than a month away from reversing that, which “by design will be negative” for financial assets, Hartnett said. He said it should lead to higher bond yields and higher volatility in markets.

Meanwhile, COVID-19 continues to squeeze the economy around the world, particularly in China. Shanghai residents face severe restrictions on movement and activities because of a surge in infections, with economic effects rippling around the world.

ACM Research, a supplier of equipment for the semiconductor industry that has operations in Shanghai, said the restrictions will cause a significant hit to its revenue. Its stock fell 6.1%.

A jump in COVID-19 cases is also behind airline disruptions in Europe. Two major airlines, British Airways and easyJet, canceled about 100 flights Wednesday. The industry is suffering from staff shortages because of the virus.

 

[bigdog]

Asian stocks fall as investors await U.S. profits, inflation

Asian stock markets are lower as investors wait for U.S. inflation data amid unease about higher interest rates, Chinese efforts to contain coronavirus outbreaks and Russia’s war on Ukraine.

apnews.com

Stocks fall on Wall Street, led by slump in tech companies​

By DAMIAN J. TROISE and ALEX VEIGA

Technology companies led a broad slide for stocks on Wall Street and bond yields rose again Monday as investors look ahead to the upcoming company earnings reporting season and what it will reveal about the impact inflation is having on corporate profits.

The S&P 500 fell 1.7%, adding to its recent losses. The Dow Jones Industrial Average fell 1.2% and the tech-heavy Nasdaq slid 2.2%. Both the benchmark S&P 500 and the Nasdaq are coming off their first weekly losses in four weeks.

Bond yields rose. The yield on the 10-year Treasury climbed to 2.78% from 2.71% late Friday. Bonds have been rising amid expectations of higher interest rates as the Federal Reserve moves to squelch inflation.

The market “is still reacting to what’s happening in the bond market,” said Willie Delwiche, investment strategist at All Star Charts. “You have yields, not just in the U.S. but around the world, moving sharply higher and that’s putting pressure on (stocks) generally. That was the story last week, and it’s the story this week.”

Higher rates hurt all kinds of investments, particularly stocks that are seen as the most expensive, such as those of Big Tech companies. As bonds offer better returns for less risk, that makes pricey stocks less attractive, which is why the heaviest selling has been concentrated in technology and other growth stocks as inflation fears have rattled the market.

Technology stocks were again the biggest weights on the market Monday. Microsoft fell 3.9% and Apple shed 2.6%.

All 11 sectors in the S&P 500 fell. The index ended down 75.75 points to 4,412.53. The Dow lost 413.04 points to 34,308.08, while the Nasdaq slid 299.04 points to 13,411.96.

Small company stocks held up better than the rest of the market. The Russell 2000 fell 14.24 points, or 0.7%, to 1,980.32.

Energy stocks were among some of the biggest losers as they followed oil prices lower. U.S. crude oil prices fell 4% and Occidental Petroleum slumped 3.9%, the biggest decliner in the S&P 500.

Oil prices remain volatile amid Russia’s invasion of Ukraine, which has put more pressure on global energy supplies. Global oil prices are up just over 25% for the year, though they have been easing somewhat throughout April.

Twitter was in focus after Tesla CEO Elon Musk said he wouldn’t be joining the company’s board after all. The stock rose 1.7%. Musk recently became the company’s biggest individual shareholder and is now free to increase his stake.

Shares of the new Warner Bros. Discovery media giant rose 1.3% on their first day of trading. The company is the $43 billion combination of Discovery and the AT&T spinoff WarnerMedia that includes storied film studio Warner Bros., CNN, HBO, HGTV and Discovery. AT&T jumped 7.7%.

Investors continue to remain uneasy about higher interest rates, Russia’s war on Ukraine and China’s effort to contain coronavirus outbreaks. In China, automakers and other manufacturers are reducing production after authorities tightened restrictions to help stem coronavirus outbreaks in Shanghai and other cities.

Wall Street will get several updates this week that could provide more clues about how the broader economy has been handling rising inflation.

The Labor Department on Tuesday will release its report on consumer prices for March, while the Commerce Department will release its March retail sales report on Thursday. Those reports have been closely watched as investors try to figure out how rising prices have been impacting consumer spending. Any significant slowdown in consumer spending would likely mean a sharper-than-expected slowdown in economic growth this year.

The latest economic updates come as investors anticipate a more aggressive shift from the Federal Reserve as it tries to temper the impact from rising inflation. The central bank has already announced a quarter-percentage point raise of its key interest rate.

Fed officials indicated in minutes from last month’s meeting they were considering raising the U.S. benchmark rate by double the normal amount at upcoming meetings. They also indicated they would shrink the Fed’s bond holdings, which would push up long-term borrowing rates.

Wall Street will also start to get more details about how individual companies performed during the first quarter and what they expect moving ahead.

“Investors will be looking to see how inflation is impacting corporate earnings,” Delwiche said. “Are companies able to pass higher costs on to consumers or are they having to eat the costs?”

Delta Air Lines and JPMorgan Chase will report their latest financial results on Wednesday, while UnitedHealth Group, Wells Fargo and Citigroup will report their results on Thursday.

ASX 200 expected to fall​

The Australian share market looks set to tumble following a poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 28 points or 0.4% lower.

On Wall Street, the S&P 500 fell 1.7%, adding to its recent losses. The Dow Jones Industrial Average fell 1.2% and the tech-heavy Nasdaq slid 2.2%. Both the benchmark S&P 500 and the Nasdaq are coming off their first weekly losses in four weeks.

 

[bigdog]

Asian shares mostly rise on interest rate, inflation hopes

Asian shares are trading mostly higher on hopes that the curbs on U.S. interest rates may moderate after new data showed signs of slowing inflation.

apnews.com

Stocks give up gains, end lower following inflation report​

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA

NEW YORK (AP) — Stocks ended slightly lower on Wall Street Tuesday after investors weighed new data showing some signs that inflation slowed slightly in March, though overall it remained at its highest level in 40 years.

The S&P 500 fell 0.3% after having been up 1.3% earlier in the day. The pullback extends the benchmark index’s losing streak to a third day, reflecting investors’ worries about the potential economic collateral damage as the Federal Reserve tackles high inflation more aggressively.

The Dow Jones Industrial Average and the Nasdaq composite each fell 0.3% after shedding early gains.

The indexes initially rallied following the release of the report, which showed inflation last month was again at its highest level in generations, driven by soaring gasoline prices in particular. Still, the reading was relatively close to economists’ expectations.

Another faint silver lining was that inflation wasn’t as bad as economists expected, when ignoring the costs of food and fuel. Known as “core inflation,” this is the reading that the Federal Reserve pays more attention to when setting policy because it’s less volatile. And core inflation on a month-over-month basis moderated to its slowest level since September.

“Hopefully this is as bad as it gets,” said Brian Jacobsen, senior investment strategist at Allspring Global Investments.

“The risk is that a red hot labor market grows cold under the force of those higher food, fuel, and financing costs. This is a time when economic resilience will be tested.”

The S&P 500 fell 15.08 points to 4,397.45. The Dow fell 87.72 points to 34,220.36, and the Nasdaq lost 40.38 points to 13,371.57.

Smaller company stocks held up better than the broader market. The Russell 2000 rose 6.61 points, or 0.3%, to 1,986.94.

Stocks in recent days have been trading in the opposite direction of Treasury yields, which have climbed to their highest levels since well before the pandemic. Yields jumped as investors brace for the Federal Reserve to hike short-term rates at a faster pace than typical and to aggressively pare its trove of bonds, whose buildup helped keep longer-term rates low.

But Treasury yields pulled back on Tuesday following the inflation report. The 10-year yield slid to 2.72% from 2.77% late Monday. It was as high as 2.83% overnight, before the inflation report’s release. The 10-year yield nevertheless remains well above the 1.51% level where it began the year.

Stocks elsewhere around the world closed lower or mixed, as unease continues to hang over markets about the war in Ukraine, Chinese efforts to contain COVID outbreaks and where inflation and interest rates are heading.

The price of U.S. crude oil climbed 6.7% to settle at $100.60, keeping the pressure on high inflation. Brent crude, the international standard, rose 6.3% to settle at $104.64.

Higher interest rates from the Federal Reserve would slow the economy, which would hopefully knock down high inflation. Consumer prices were 8.5% higher in March than a year earlier, accelerating from February’s 7.9% inflation rate and the highest since 1981. To bring it down, the Fed revealed in the minutes from its latest meeting that it’s prepared to hike short-term rates by half a percentage point, double the usual amount, at some upcoming meetings, something it hasn’t done since 2000.

The worry is the Federal Reserve may be so aggressive about hiking interest rates that it forces the economy into a recession.

Higher interest rates also put downward pressure on all kinds of investments, with those seen as the most expensive hardest hit. That’s because when investors are earning more in interest to own relatively safe bonds, they’re less willing to pay higher prices for riskier stocks. Technology and other high-growth stocks that have been some of the stock market’s biggest recent winners have been in the spotlight in particular.

On Tuesday, technology stocks were among the biggest drags on S&P 500, along with health care and financial companies. Microsoft fell 1.1%, Pfizer lost 1.5% and Wells Fargo slid 1.8%.

Energy companies and retailers were among the sectors that notched gains. Marathon Oil rose 4.2% and Ross Stores rose 2.5%.

More swings may be in store for stocks as companies prepare to report their earnings for the first three months of the year. Delta Air Lines, JPMorgan Chase and other big-name companies will kick off the reporting season on Wednesday.

A key focus for investors during the latest round of earnings will be any sign of consumers pulling back on spending and how companies reacted, said Jack Janasiewicz, portfolio manager and lead portfolio strategist at Natixis Investment Managers Solutions.

“It all boils down to their margins and how are companies deal with rising costs,” Janasiewicz said.

Earnings were able to stay at record levels through the end of last year as companies raised prices for their products and services enough to protect their profit margins. But the further acceleration of inflation may be straining that formula.

Used car dealership chain CarMax slumped 9.5% after reporting disappointing earnings. The company said high prices for cars were discouraging buyers.

While they can swing sharply for many reasons in the short term, stock prices tend to track the path of corporate profits over the long term.

ASX 200 expected to edge lower​

The Australian share market looks set to edge lower on Wednesday following a poor night in the US. According to the latest SPI futures, the ASX 200 is expected to open the day down 7 points or 0.1% to 7417 at 6.59am AEST.

On Wall Street, stocks ended slightly lower Tuesday after investors weighed new data showing some signs that inflation slowed slightly in March, though overall it remained at its highest level in 40 years.

The S&P 500 fell 0.3% after having been up 1.3% earlier in the day. The pullback extends the benchmark index’s losing streak to a third day, reflecting investors’ worries about the potential economic collateral damage as the Federal Reserve tackles high inflation more aggressively.

The Dow Jones Industrial Average and the Nasdaq composite each fell 0.3% after shedding early gains.

 

[bigdog]

Asian shares track Wall Street higher, oil prices retreat

Asian shares are mostly higher after an advance on Wall Street that ended a three-day losing streak. Tokyo, Hong Kong and Shanghai advanced while Seoul edged lower.

apnews.com

Wall Street ends higher, breaking a 3-day losing streak​

By DAMIAN J. TROISE

NEW YORK (AP) — Stocks closed broadly higher on Wall Street Wednesday, ending a three-day losing streak as an upbeat report from Delta Air Lines sparked a rally for companies in the travel industry.

Investors brushed off yet another report showing that inflation remains widespread in the U.S. economy, and the broad gains helped trim weekly losses for most of the major indexes. The stock and bond markets face a shortened week and will be closed on Friday for the Good Friday holiday.

The S&P 500 index rose 49.14 points, or 1.1%, to 4,446.59. The benchmark index is coming off three straight losses brought on by persistent worries about inflation and the tough medicine the Federal Reserve is planning to use against it, higher interest rates.

The Dow Jones Industrial Average rose 344.23 points, or 1%, to 34,564.59 and the Nasdaq rose 272.02 points, or 2%, to 13,643.59.

Smaller company stocks outpaced the broader market in a sign that investors were confident about economic growth. The Russell 2000 index rose 38.17 points, or 1.9%, to 2,025.10 and is on track for a weekly gain.

Travel-related companies were among the biggest gainers after Delta reported strong revenue during its first quarter and solid bookings. The update is encouraging for the broader travel sector as airlines, cruise lines and hotels prepare for the summer vacation season.

Delta rose 6.2% and rival American Airlines jumped 10.6%. Rivals Southwest and United Airlines also gained ground. Cruise line operators Carnival and Royal Caribbean had solid gains, along with Expedia Group.

Technology stocks did a lot of heavy lifting. Pricey valuations for many of the bigger technology companies lend more weight to directing the broader market higher or lower.

Banks slipped following a disappointing earnings report from JPMorgan, which fell 3.2% after revealing a sharp drop in profits as it wrote down nearly $1.5 billion in assets due to higher inflation and the Russian-Ukrainian War.

Bond yields fell. The yield on the 10-year Treasury fell to 2.69% from 2.72%.

The Labor Department reported that the surging cost of energy pushed wholesale prices up a record 11.2% last month from a year earlier — another sign that inflationary pressure is widespread in the U.S. economy. That report comes a day after the department reported that consumer prices remain at their highest levels in generations.

“In the near term there’s a lot of focus on what the inflection point looks like and there’s confidence now that we’re seeing a peak,” said Yung-Yu Ma, chief investment strategist at BMO Wealth Management.

Inflation, while seemingly peaking, will likely stick around for awhile as cost pressures filter their way through the markets over the next few quarters, he said.

The persistently rising inflation has prompted the Federal Reserve to tighten its monetary policy in order to temper the impact of inflation on businesses and consumers. The central bank has already announced a quarter-percentage point rate hike and is expected to continue raising rates through the year.

The Fed revealed in the minutes from its latest meeting that it’s prepared to hike short-term rates by half a percentage point, double the usual amount, at some upcoming meetings, something it hasn’t done since 2000.

“The Fed wants to get to neutral or something close to it as quickly as possible,” Ma said. “The Fed is still in a bit of shell-shock reaction mode.”

Lingering concerns about inflation and rising interest rates have been worsened by Russia’s invasion of Ukraine. The conflict has made for volatile energy prices as oil supplies already remain tight amid rising demand. U.S. crude oil prices rose 3.6% and are up roughly 40% for the year. That has driven up gasoline prices and added to inflation’s hit on people’s wallets.

Companies in various industries have been raising prices to offset rising costs and maintain or increase their margins, but the constant pressure from inflation has managed to dent some operations. Bed Bath & Beyond fell 1.2% and is the latest company to warn investors about supply chain issues, saying that inventory problems continue to hurt sales.

Internet retail giant Amazon will add a 5% “fuel and inflation surcharge” to fees it charges third-party sellers who use the retailer’s fulfillment services as the company faces rising costs.

Investors will get more details on how companies and consumers are dealing with pressure from inflation in the coming days and weeks as more companies report their latest financial results. The Commerce Department on Thursday will release its retail sales report for March, which will show whether and where consumers are pulling back on spending.

The latest round of corporate earnings reports will continue on Thursday with releases from insurer UnitedHealth Group and banks Wells Fargo and Citigroup.

ASX 200 expected to rise​

The Australian share market looks set end the shortened week in a positive fashion after Wall Street rebounded overnight. According to the latest SPI futures, the ASX 200 is expected to open the day ASX futures up 18 points or 0.2% to 7472 at 6.43am AEST this morning.

On Wall Street, stocks closed broadly higher on Wall Street Wednesday, ending a three-day losing streak as an upbeat report from Delta Air Lines sparked a rally for companies in the travel industry.

The Dow Jones Industrial Average rose 344.23 points, or 1%, to 34,564.59 and the Nasdaq rose 272.02 points, or 2%, to 13,643.59.

 

[bigdog]

Asian shares fall, trading muted with Good Friday holidays

Asian shares have fallen in muted trading as markets close for Good Friday and other holidays. Benchmarks declined in Tokyo, Seoul and Shanghai.

apnews.com

US stocks fall; investors eye Elon Musk’s offer for Twitter​

By DAMIAN J. TROISE and ALEX VEIGA

NEW YORK (AP) — Stocks closed lower on Wall Street Thursday as investors gave mixed reviews to earnings from four of the nation’s largest banks.

The S&P 500 fell 1.2%, ending a shortened trading week with a 2.1% decline. The Dow Jones Industrial Average fell 0.3% and the Nasdaq composite lost 2.1%. Both indexes also ended in the red for the week.

A quartet of big banks reported noticeable declines in their first-quarter profits as the latest earnings season kicks into gear. Volatile markets and the war in Ukraine caused deal-making to dry up while a slowdown in the housing market meant fewer people sought mortgages.

Citigroup rose 1.6% while Wells Fargo fell 4.5%. Morgan Stanley rose 0.7% and Goldman Sachs slipped 0.1%.

Bond yields rose again, sending the 10-year Treasury yield to 2.83%, and the price of U.S. oil rose, finishing nearly 11% higher for the week.

“With higher oil prices, higher bond yields, (it) implies the market continues to worry about inflation, worried about Ukraine, worried about the Fed’s response to all of this,” said Sam Stovall, chief investment strategist at CFRA.

The S&P 500 fell 54 points to 4,392.59. The Dow dropped 113.36 points to 34,451.23. The Nasdaq fell 292.51 points to 13,351.08. The U.S. stock market will be closed for Good Friday.

Technology stocks led the way lower Thursday, offsetting gains elsewhere in the market. Pricey valuations for many of the bigger technology companies give them more sway in directing the broader market higher or lower. Microsoft fell 2.7%.

Retailers and other companies that rely on consumer spending also weighed on the market. Amazon fell 2.5%. Energy stocks rose along with the price of crude oil. Exxon Mobil rose 1.2%.

Smaller company stocks also lost ground. The Russell 2000 fell 20.12 points, or 1%, to 2,004.98.

Investors again turned their attention to the drama surrounding Tesla founder and CEO Elon Musk and Twitter. Musk offered to buy the social media company for $54.20 a share, two weeks after revealing he’d accumulated a 9% stake.

Musk has criticized Twitter for not living up to free speech principles and said, in a regulatory filing, that it needs to be transformed as a private company. Twitter’s stock fell 1.7% at $45.08, well below Musk’s offering price.

Wall Street had mixed economic data to review following several hot inflation reports earlier in the week. The Commerce Department said retail sales rose 0.5% in March, boosted by higher prices for gasoline, as consumers continue to spend despite high inflation.

Inflation remains at its highest levels in 40 years in the U.S. and that has economists and analysts closely watching how consumers react to higher prices on everything from food to clothing and gasoline. Concerns about inflation have worsened amid Russia’s invasion of Ukraine, which has made for more volatile energy prices and contributed to rising oil and wheat prices globally.

U.S. crude oil prices reversed an early decline Thursday and settled 2.6% higher.

The head of the International Monetary Fund warned Thursday that Russia’s war against Ukraine was weakening the economic prospects for most of the world’s countries and reaffirmed the danger high inflation presents to the global economy.

Rising prices are driving the Federal Reserve and many other central banks to tighten monetary policy by raising interest rates, among other measures, to help cool the surging demand that is contributing to the problem.

Bond yields have been mostly on the rise as Wall Street prepares for higher interest rates.

Investors received another update on the recovery in the jobs market. The number of people seeking unemployment benefits ticked up last week, according to the Labor Department, but remained at a historically low level. The data reflect a robust U.S. labor market with near record-high job openings and few layoffs.

Besides the banks, insurer UnitedHealth Group was the other big name on the earnings docket. UnitedHealth rose 0.4% after reporting solid first-quarter results and raising its 2022 forecasts.

Investors are closely watching the latest round of corporate earnings to determine how companies have been dealing with rising costs and whether consumers have pulled back their spending.

 

[bigdog]

Asian shares mostly higher despite fears of recession

Shares are mostly higher in Asia, despite growing worries over the risks of recession. Oil prices extended gains.

apnews.com

Europe, New Zealand and Hang Seng closed for holiday Monday April 18

Stocks edge lower as earnings roll in, natural gas soars​

By STAN CHOE and ALEX VEIGA

NEW YORK (AP) — Stocks closed slightly lower after a wobbly day of trading Monday, as worries about interest rates and inflation keep a lid on Wall Street despite some better-than-expected profit reports.

The S&P 500 slipped less than 0.1%. The benchmark index was coming off its second straight week of losses. Like it, the other two major U.S. stock indexes also rolled between small gains and losses Monday. The Dow Jones Industrial Average and Nasdaq each fell 0.1%.

Among S&P 500 companies, a slide in health care, industrial and other sectors narrowly edged out gains in technology, financial, energy and other stocks.

That pulled the index 0.90 points lower to 4,391.69. The Dow, meanwhile, dropped 39.54 points to 34,411.69.

Stocks have struggled this year as the highest inflation in generations forces the Federal Reserve into a U-turn on the low-interest-rate policies that helped markets soar and the economy to rev in recent years.

The central bank has already raised short-term rates once, and investors are expecting it to raise rates by double the usual amount in a couple weeks, with more likely on the way. The Fed is also preparing investors for a sharp reversal in its massive efforts to keep longer-term rates low.

Stocks have often moved in the opposite direction of Treasury yields, and the 10-year yield is near its highest level since 2018, at 2.85% late Monday afternoon. Higher yields put downward pressure on all kinds of investments, from gold to cryptocurrencies, and the stocks seen as the most expensive tend to get hit hardest.

That puts the spotlight on big technology and high-growth stocks, the ones that screamed highest through the pandemic. The Nasdaq, home to many such stocks, has lagged the rest of the market sharply this year. The index fell 18.72 points to 13,332.36 Monday.

Smaller stocks also faltered, with the Russell 2000 index finishing down 14.85 points, or 0.7%, at 1,990.13.

Counterbalancing were some better-than-expected profit reports. Synchrony Financial climbed 6.2% after it said it earned more in the first three months of the year than Wall Street expected. It also boosted its dividend and plan to buy back its own stock.

Bank of America rose 3.4% after reporting stronger profits than analysts forecast.

They’re among the first companies to tell investors how much they earned at the start of 2022, and expectations are relatively subdued. Analysts are forecasting roughly 5% growth for S&P 500 companies, the slowest since the end of 2020, according to FactSet. Much of that is because it’s difficult to keep growing profits at such a high pace following a year of better than 30% growth.

But inflation may also be pulling down profits following a year of big companies’ successfully passing along almost all their price increases onto their customers.

Energy producers continue to be big winners from inflation, as prices keep rising for the oil and natural gas they sell. Natural gas leaped again Monday, with the U.S. price up 7.1% and near its highest level since 2008. The war in Ukraine is pushing up demand for U.S. gas as European customers try to turn away from Russian supplies.

The price of benchmark U.S. oil, meanwhile, rose 1.2% to settle at $108.21 per barrel. Brent crude, the international standard, gained 2.7% to settle at $111.70, and that helped lift energy stocks in the S&P 500 by 1.5% for the biggest gain among the 11 sectors that make up the index.

Twitter, meanwhile, jumped 7.5% in the first trading after the company announced a plan to make it more difficult for someone to take over the company. Tesla CEO Elon Musk has said he wants to buy the social-media platform and take it private, but the company has made it tough for him to amass more than a 15% stake in it.

ASX 200 expected to edge higher​

The Australian share market looks set to start the week with a small gain. According to the latest SPI futures, the ASX 200 is poised to open the day up 10 points or 0.13% to 7506 at 8am AEST

On Wall Street stocks closed slightly lower after a wobbly day of trading Monday, as worries about interest rates and inflation keep a lid on Wall Street despite some better-than-expected profit reports.

The S&P 500 slipped less than 0.1%. The benchmark index was coming off its second straight week of losses. Like it, the other two major U.S. stock indexes also rolled between small gains and losses Monday. The Dow Jones Industrial Average and Nasdaq each fell 0.1%

 

[bigdog]

Asian shares mixed after tech-led rally on Wall Street

Stocks are mixed in Asia after a rally on Wall Street led by technology stocks. Share benchmarks rose in Tokyo, Hong Kong and Sydney but fell in Shanghai.

apnews.com

Tech stocks rally after an early loss, leading market higher​

By DAMIAN J. TROISE and ALEX VEIGA

NEW YORK (AP) — Stocks overcame a weak start and finished broadly higher Tuesday, giving the major indexes on Wall Street their best day in nearly five weeks.

The S&P 500 rose 1.6%, enough to recoup almost all of its losses from last week. The Dow Jones Industrial Average rose 1.5% and the Nasdaq gained 2.2%.

The last time the indexes mounted a bigger rally was March 16. The S&P 500 and Nasdaq came into this week with two straight weekly losses, while the Dow has fallen three weeks in a row.

Stocks have mostly struggled this year amid uncertainty over how the economy and Corporate America will be affected as the Federal Reserve moves to reverse low-interest rate policies that helped markets soar in recent years.

“We’re just getting a little bit of a bounce back from what’s been a tough couple of weeks,” said Bill Northey, senior investment director at U.S. Bank Wealth Management.

The S&P 500 rose 70.52 points to 4,462.21. The Dow recovered from a 17-point drop and climbed 499.51 points to 34,911.20. The Nasdaq gained 287.30 points to 13,619.66.

Nearly 90% of the stocks in the benchmark S&P 500 rose. Technology stocks helped power the broad gains. Pricey valuations for many of the bigger technology companies give them more sway in directing the broader market higher or lower. Microsoft rose 1.7%.

Retailers and health care companies also helped lift the market. Amazon rose 3.5%. Johnson & Johnson rose 3.1% after reporting surprisingly good earnings while also raising its dividend.

Banks gained ground along with rising Treasury yields, which allow them to charge higher interest rates on loans. The yield on the 10-year Treasury rose to 2.94% from 2.85% late Monday. Bank of America rose 1.9%.

Smaller company stocks outpaced the broader market in a sign of confidence about economic growth. The Russell 2000 rose 40.63 points, or 2%, to 2,030.77.

Energy stocks were the only laggard. U.S. crude oil prices fell 5.2% and natural gas prices slumped 8.2%.

Wall Street is increasingly focusing on the latest round of corporate report cards as more big companies release their earnings. Signature Bank jumped 8.1% after beating analysts’ expectations.

Dental products maker Dentsply Sirona slumped 13.4% after firing its CEO without giving a reason, along with issuing a profit forecast for the current quarter that was far below analysts’ estimates.

Netflix sank 25% in after-hours trading after the video streaming giant reported its first loss in worldwide subscribers in more than a decade. Netflix said it was bracing for things to get even worse with a projected loss of another 2 million subscribers during the April-June period. As of Tuesday’s close, Netflix had already lost half its value since hitting an all-time high last November.

Railroad giant CSX will report earnings on Wednesday, along with Tesla. American Airlines and Union Pacific will report their results on Thursday.

The latest round of earnings comes as investors try to gauge how companies and consumers are dealing with rising inflation that has made everything from food to clothing and gas more expensive.

The conflict in Ukraine has added to those price pressures. The International Monetary Fund on Tuesday downgraded the outlook for the world economy this year and next, blaming Russia’s war in Ukraine for disrupting global commerce, pushing up oil prices, threatening food supplies and increasing uncertainty already heightened by the coronavirus and its variants.

Rising prices have prompted the Federal Reserve and other central banks to raise interest rates in order to help temper inflation’s impact. The Fed has already announced a quarter-percentage point rate hike and Wall Street expects a half-percentage rate hike at its next meeting. Currently, investors expect rate hikes to push the benchmark interest rate to a range between 2.5% and 2.75% by the end of the year, according to CME Group’s FedWatch tool.

“It’s going to be interesting to see how fast they hike rates from one meeting to the other,” said Shawn Cruz, head trading strategist at TD Ameritrade. “How we get to the end of the year is going to be something that will have a lingering effect of driving uncertainty in the market and continuing to drive volatility.”

Bond yields have been rising as Wall Street prepares for higher interest rates. The yield on the 10-year Treasury is the highest it’s been since late in 2018. Rising yields have also been raising pressure on an already tight housing market as mortgages rates rise and make borrowing more expensive. Wall Street will get more details on that impact when the National Association of Realtors releases its home sales report for March on Wednesday.

ASX 200 expected to storm higher​

The Australian share market looks set to have a great day on Wednesday following a strong night in the US. According to the latest SPI futures, the ASX 200 is expected to open the day up 47 points or 0.6% to 7581 at 6.59am AEST

On Wall Street, stocks overcame a weak start and finished broadly higher Tuesday, giving the major indexes on Wall Street their best day in nearly five weeks.

The S&P 500 rose 1.6%, enough to recoup almost all of its losses from last week. The Dow Jones Industrial Average rose 1.5% and the Nasdaq gained 2.2%.

 

[bigdog]

Asian indexes mixed in choppy trading, echoing Wall Street

Asian shares are mixed in choppy trading, as inflation worries and the war in Ukraine had investors partly optimistic while staying cautious.

apnews.com

Indexes end mixed, Netflix plunges on subscriber losses​

By DAMIAN J. TROISE and ALEX VEIGA

NEW YORK (AP) — Wall Street’s major stock indexes ended mixed Wednesday after another day of choppy trading, while Netflix lost more than a third of its value after reporting its first subscriber loss in more than a decade and predicting more grim times ahead.

The S&P 500 slipped 0.1% after a late-afternoon fade, while the Nasdaq fell 1.2%. The Dow Jones Industrial Average rose 0.7%, having received a bump from IBM, which added 7.1% after reporting quarterly results that beat analysts’ estimates.

Netflix slumped 35.1% a day after the streaming giant reported its first decline in subscribers in more than a decade. The company also said it expects a steeper decline during the current quarter. Netflix is now considering changes that it has long resisted, including minimizing password sharing and creating a low-cost subscription option supported by advertising. The stock is now down 67% from the all-time high it reached in November.

The skid in Netflix, one of Wall Street’s Big Tech high flyers in recent years, weighed heavily on the S&P 500, outweighing gains elsewhere in the benchmark index, and hit the communication services sector the hardest, pulling it 4.1% lower.

“While it is in communication services, it is also a discretionary stock, clearly, in that it’s one of those things people buy because they want, not because they have to,” said Randy Frederick, vice president of trading & derivatives at Charles Schwab.

Technology stocks, retailers and other companies that rely on consumer spending also weighed on the market. Chipmaker Nvidia fell 3.2% and Amazon dropped 2.6%.

Health care stocks made some of the biggest gains. CVS rose 2.7% and medical device maker Boston Scientific added 3%.

Banks and household product makers also bucked the market’s overall decline. JPMorgan Chase rose 0.4%, while Charmin and Dawn maker Procter & Gamble rose 2.7% after beating analysts’ quarterly earnings forecasts.

Tesla rose 4% in after-hours trading after reporting first-quarter net earnings that were over seven times greater than a year earlier. The electric vehicle and solar panel company benefited from strong sales despite global supply chain kinks and pandemic-related production cuts in China.

All told, the S&P 500 slipped 2.76 points to 4,459.45, and the Nasdaq fell 166.59 points to 13,453.07. The Dow rose 249.59 points to 35,160.79.

Smaller company stocks held up better than the broader market. The Russell 2000 added 7.42 points, or 0.4%, to 2,038.19.

Investors continue focusing on the latest round of corporate earnings as they try to determine how companies are dealing with rising inflation and cost pressures. American Airlines and Union Pacific are due to report results on Thursday.

Inflation has been putting increasing pressure on a wide range of industries and increasingly squeezing consumers. Rising prices have prompted the Federal Reserve and other central banks to raise interest rates in order to help temper inflation’s impact. The Fed has already announced a quarter-percentage point rate hike and Wall Street expects a half-percentage rate hike at its next meeting in two weeks.

“The market knows the Fed’s going to hike rates a bunch,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute. “But, the market is feeling pretty good that once we get to neutral, then in 2023 maybe you don’t go a lot further.”

Interest rates are considered “neutral” when they neither push nor restrict economic growth. Currently, investors expect rate hikes to increase the benchmark interest rate to a range somewhere between 2.50% and 3% by the end of the year, according to CME Group’s FedWatch tool.

Bond yields have been rising throughout the year as Wall Street prepares for higher interest rates. The yield on the 10-year Treasury note eased to 2.84% from 2.91% late Tuesday, but it’s still near its highest level since late 2018.

Higher bond yields have been pushing up mortgage rates and increasing pressure on an already tight housing market. The National Association of Realtors reported Wednesday that sales of previously occupied U.S. homes fell in March to the slowest pace in nearly two years as higher mortgage rates and already record-high prices discouraged would-be homebuyers.

Russia’s invasion of Ukraine and the ongoing conflict has only added to the worries about rising inflation crimping economic growth. The conflict has pushed energy and commodity prices higher.

U.S. crude oil prices rose 0.2% Wednesday and are up nearly 40% for the year, pushing gasoline prices higher. Wheat prices are up 41% for the year and that has the potential to increase prices for a wide range of food products globally.

Stocks have mostly struggled this year because of the confluence of concerns. Meanwhile virus lockdowns in China are easing. Authorities in Shanghai allowed 4 million people to leave their homes, but the lockdowns have left the Chinese economy damaged.

ASX 200 expected to rise​

The Australian share market looks set to have another positive day despite a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day up 30 points or 0.4% to 7570 at 6.59am AEST

On Wall Street, major stock indexes ended mixed Wednesday after another day of choppy trading, while Netflix lost more than a third of its value after reporting its first subscriber loss in more than a decade and predicting more grim times ahead.

The S&P 500 slipped 0.1% after a late-afternoon fade, while the Nasdaq fell 1.2%. The Dow Jones Industrial Average rose 0.7%, having received a bump from IBM, which added 7.1% after reporting quarterly results that beat analysts’ estimates.

 

[bigdog]

Asian shares decline after Fed chief's comments on inflation

Asian shares have retreated, tracking losses on Wall Street after Federal Reserve Chair Jerome Powell indicated increases in interest rates must be faster to fight inflation.

apnews.com

Stocks fall on Wall Street following Fed chief’s comments​

By DAMIAN J. TROISE and ALEX VEIGA

Stocks shed early gains and ended broadly lower on Wall Street Thursday after the head of the Federal Reserve said the central bank needs to take more aggressive action to fight high inflation.

In a panel discussion held by the International Monetary Fund, Fed Chair Jerome Powell said the Fed must move faster than it has previously to tackle inflation, which suggests sharp interest rate increases are likely in coming months.

The S&P 500 closed 1.5% lower after having been up 1.2% in the early going. The Dow Jones Industrial Average fell 1% and the Nasdaq slid 2.1%.

The afternoon sell-off left the S&P 500 flat for the week and knocked the Nasdaq into the red. Both indexes came into this week with two consecutive weekly declines.

The benchmark S&P 500 fell 65.79 points to 4,393.66. The Dow dropped 368.03 points to 34,792.76. The Nasdaq slid 278.41 points to 13,174.65.

Smaller company stocks fell more than the broader market. The Russell 2000 gave up 46.72 points, or 2.3%, to 1,991.46.

The broader market has had a choppy week as investors review the latest round of corporate earnings amid lingering concerns about rising inflation and the Fed’s shift away from an ultra-low interest rate policy.

The Fed has already announced a quarter-percentage point rate hike and Wall Street expects a half-percentage rate hike at its next meeting in two weeks. Other central banks have also moved to raise interest rates to try and temper the impact of rising prices on businesses and consumers.

During the panel discussion Thursday, Powell suggested that “there’s something in the idea of front-loading” aggressive rate hikes as the Fed grapples with inflation that has reached a four-decade high.

That suggests a half-point rate increase could be on the table when Fed officials hold their next interest rate and economic policy meetings May 3-4, Powell said. In the past, the Fed has typically raised its benchmark short-term rate by more modest quarter-point increments.

More than 80% of the stocks in the S&P 500 fell Thursday, with technology stocks accounting for a big share of the decline. Pricey valuations for many of the bigger technology companies give them more sway in directing the broader market higher or lower. Microsoft fell 1.9% and chipmaker Nvidia slid 6%.

American Airlines gained 3.8% after telling investors it expects to turn a profit in the second quarter as more people return to travel.

Tesla rose 3.2% after after the maker of electric cars and solar panels reported strong sales and a seven-fold increase in profits despite global supply chain kinks.

Bond yields have been gaining ground as investors prepare for higher interest rates. The yield on the 10-year Treasury rose significantly to 2.92% from 2.84%, hovering near its highest levels since late 2018.

Central bank officials and economists have been warning about slower economic growth as the world moves past the initial surge in activity as the pandemic subsided and persistently rising inflation crimps spending. Concerns about a slowdown have been elevated since Russia invaded Ukraine, prompting a jump in energy and commodity prices that could prolong rising inflation.

The price of U.S. crude oil rose 1.6% on Thursday and is up roughly 40% for the year. That has made gasoline more expensive, which cuts deeper into consumers’ wallets. Prices for wheat and corn have also jumped, as Ukraine is a key global producer of both. Those staples are key ingredients in a wide range of food products.

Rising prices on everything from food to clothing and uncertainty over the inflation have been lingering over the economy even as it continues to show more signs of recovery from the virus pandemic. The Labor Department reported Thursday that applications for unemployment benefits inched down last week as the total number of Americans collecting aid fell to its lowest level in more than 50 years.

ASX 200 expected to sink​

The Australian share market looks set to end its winning streak following a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day down 65 points or 0.9% to 7497 at 6.59am AEST

Stocks shed early gains and ended broadly lower on Wall Street Thursday after the head of the Federal Reserve said the central bank needs to take more aggressive action to fight high inflation.

The benchmark S&P 500 fell 65.79 points to 4,393.66. The Dow dropped 368.03 points to 34,792.76. The Nasdaq slid 278.41 points to 13,174.65.

 

[bigdog]

Stocks stumble 2.8% as worries about interest rates worsen

Stocks slumped on Wall Street Friday, leaving the S&P 500 with its biggest one-day loss in almost seven weeks, as worries deepen about a surge in interest rates and the U.S. central bank's efforts to fight inflation.

apnews.com

Stocks stumble 2.8% as worries about interest rates worsen​

By STAN CHOE and ALEX VEIGA

NEW YORK (AP) — Stocks tumbled on Wall Street Friday, leaving the S&P 500 with its biggest one-day loss in almost seven weeks, as worries deepen about a surge in interest rates and the U.S. central bank’s efforts to fight inflation.

Several disappointing profit reports from companies also shook what’s been the market’s main pillar of support.

The S&P 500 sank 2.8% and marked its third losing week in a row. The Dow Jones Industrial Average slumped 2.8%, its biggest drop in 18 months, after briefly skidding more than 1,000 points. The Nasdaq also had its worst day in nearly seven weeks, closing 2.6% lower.

A day earlier, Wall Street seemed set for healthy gains for the week after American Airlines, Tesla and other big companies reported strong profits or better forecasts for future earnings than analysts expected. Such corporate optimism has helped stocks remain relatively resilient, even as worries swirl about the highest inflation in decades, the war in Ukraine and the coronavirus.

But markets buckled as the chair of the Federal Reserve indicated the central bank may indeed hike short-term interest rates by double the usual amount at upcoming meetings, starting in two weeks.

The Fed has already raised its key overnight rate once, the first such increase since 2018, as it aggressively removes the tremendous aid thrown at the economy through the pandemic. It’s also preparing other moves to put upward pressure on longer-term rates.

By making it more expensive for businesses and households to borrow, the higher rates are meant to slow the economy, which should hopefully halt the worst inflation in generations. But they can also trigger a recession, all while putting downward pressure on most kinds of investments.

“After years of being very accommodative, the Fed has made it clear that policy is going to be tighter for the foreseeable future,” said Brian Price, head of investment management for Commonwealth Financial Network. “Their hawkish stance is giving investors pause as many are left to evaluate the impact on profit margins and (stock) multiples moving forward.”

The S&P 500 fell 121.88 points to 4,271.78. The Dow dropped 981.36 points to 33,811.40. The Nasdaq lost 335.36 points, closing at 12,839.29. The Dow and Nasdaq also posted losses for the week.

Smaller company stocks also fell sharply. The Russell 2000 slid 50.80 points, or 2.6%, to 1,940.66.

A preliminary report on Friday indicated the U.S. services industry’s growth is slowing, hurt in particular by surging costs for fuel, wages and other expenses.

Treasury yields have soared as investors prepare for a more aggressive Fed, and stocks have often moved in the opposite direction of them. The yield on the 10-year Treasury slipped to 2.90% from 2.91% late Thursday, but remains close to its highest level since 2018. It began the year at 1.51%.

The two-year Treasury yield, which moves more on expectations for Fed action on short-term rates, has zoomed even more. It was at 2.69% late Friday after more than tripling from 0.73% at the start of the year.

Markets around the world are feeling similar pressure on rates and inflation, particularly in Europe as the war in Ukraine pushes up oil, gas and food costs.

On Wall Street, most stocks fell, including more than 95% of the companies in the S&P 500. Technology and health care companies were among the biggest weights. Apple fell 2.8% and Microsoft dropped 2.4%.

HCA Healthcare slumped 21.8% for the biggest decline in the S&P 500 after reporting weaker earnings per share for the latest quarter than analysts expected. The hospital operator also cut its forecasted ranges for revenue and earnings this year.

Verizon Communications slid 5.6% after it said it expects earnings for the year to fall at the lower end of the range it had previously forecast. The company also reported slightly weaker revenue than expected for the first three months of the year.

Retailer Gap sank 18% after it cut its forecast for sales for the current fiscal quarter and said the CEO of its Old Navy business will leave the company.

The disappointing company earnings and outlooks, plus Powell’s remarks Thursday, have ratcheted up worries for investors already trying to navigate economic uncertainty over the lingering global supply chain issues, the pandemic and the war in Ukraine, said Greg Bassuk, CEO of AXS Investments.

“Looking ahead, that’s putting a sour taste in investors’ mouths around the likelihood of corporate earnings being stronger for the balance of 2022,” he said.

 

[bigdog]

Asian shares advance on back of rally on Wall Street

Asian shares are mostly higher after U.S. stocks stormed back from sharp losses to log strong gains. Tokyo, Hong Kong, Seoul and Shanghai advanced while Sydney declined.

apnews.com

Stocks rally, erase early loss ahead of big earnings week​

By DAMIAN J. TROISE

NEW YORK (AP) — U.S. stocks stormed back from sharp losses in the morning to notch gains Monday, the latest round of turbulence for Wall Street.

The S&P 500 climbed 24.34 points, or 0.6%, to 4,296.12 after erasing an early 1.7% loss. Stocks of internet-related companies helped lead the way, including Twitter, which jumped 5.7% after agreeing to sell itself to Tesla CEO and tweeter extraordinaire Elon Musk.

The Dow Jones industrial average rose 238.06 points, or 0.7%, to 34,049.46 after earlier being down 488 points, while the Nasdaq composite rallied 165.56, or 1.3%, to 13,004.85 to lead the market.

Stocks have been shaky recently, with the S&P 500 coming off a three-week losing streak, amid worries about the quick jump in interest rates coming from the Federal Reserve as it tries to rein in high inflation. Strong profit reports for the first three months of the year from big U.S. companies had been offering support, but even that was looking less solid following some mixed reports and forecasts last week.

Now Wall Street is in the midst of one of the most important stretches of the earnings season. Apple, Microsoft, Amazon and the parent company of Google are all on deck to report this week. And because they’re among the biggest companies by market value, their movements hold the most sway over the S&P 500.

Earlier in the morning, U.S. stocks had been on track to follow global markets lower, particularly in China, over worries that strict lockdown measures there might crimp the world’s second-largest economy and potentially hurt global economic growth. Stocks in Shanghai slumped 5.1%, while Hong Kong’s Hang Seng fell 3.7%.

China’s capital, Beijing, began mass testing of more than 3 million people on Monday and restricted residents in one part of the city to their compounds, sparking worries of a wider lockdown similar to Shanghai. That city has been locked down for more than two weeks and that has already prompted the International Monetary Fund to trim its growth forecast for China’s economy.

Worries are also high for the U.S. economy, which some investors believe is set to slow sharply or even fall into a recession because of the big interest-rate increases the Fed is likely to push through.

Yields for U.S. government bonds fell Monday, a turnaround from this year’s sharp jump in yields. The yield on the 10-year Treasury, which affects rates on mortgages and other consumer loans, dropped to 2.82% from 2.90% late Friday. It has recently been close to its highest level since 2018.

Lower yields tend to benefit high-growth stocks the most, because investors become more willing to pay high prices when they’re not losing much in interest if they’d bought bonds instead. Gains for several big tech-related stocks were the strongest forces lifting the S&P 500 Monday, including a 2.4% gain for Microsoft and a 2.9% rise for the Class A shares of Google’s parent, Alphabet.

Both are set to report their latest quarterly results on Tuesday.

“Today is definitely a very small rebound, but we are early in earnings season and the big ones are coming (Tuesday) and later this week,” said Robert Cantwell, portfolio manager at Upholdings.

Besides their bottom-line profit numbers, investors are also looking for a better sense of how big companies in the technology, industrial and retail sectors are handling rising inflation and supply chain issues.

“The plane is circling the airport,” Cantwell said. “Volatility will be back, make no mistake.”

Inflation remains a key concern for investors. Investors are worried about whether the Fed will be able to hike rates enough to quell inflation but not so much as to cause a recession. The chair of the Federal Reserve has indicated the central bank may hike short-term interest rates by double the usual amount at upcoming meetings, starting next week. The Fed has already raised its key overnight rate once, the first such increase since 2018.

Wall Street will also get some key economic data this week. The Conference Board will release its measure of consumer confidence for April on Tuesday. The Commerce Department will release its first-quarter gross domestic product report on Thursday.

ASX 200 expected to sink​

The Australian share market looks set to start the week as it ended the last one.

According to the latest SPI futures, futures were down 25 points or 0.3 per cent to 7298 near 7am AEST; they earlier fell more than 130 points down! The ASX 200 is poised to open the day 160 points or 2.15% lower.

The S&P 500 climbed 24.34 points, or 0.6%, to 4,296.12 after erasing an early 1.7% loss. Stocks of internet-related companies helped lead the way, including Twitter, which jumped 5.7% after agreeing to sell itself to Tesla CEO and tweeter extraordinaire Elon Musk.

The Dow Jones industrial average rose 238.06 points, or 0.7%, to 34,049.46 after earlier being down 488 points, while the Nasdaq composite rallied 165.56, or 1.3%, to 13,004.85 to lead the market.

 

[bigdog]

Asian shares decline, echoing broad slump on Wall Street

Asian shares have retreated, echoing a broad decline on Wall Street and driven by worries about how the war in Ukraine may push prices for oil and other commodities higher.

apnews.com

Tech stocks slump again; Nasdaq has worst loss since 2020​

By DAMIAN J. TROISE

NEW YORK (AP) — Stocks closed broadly lower on Wall Street Tuesday, weighed down by sharp declines in Big Tech stocks that also left the Nasdaq with its worst drop since September 2020.

Investors are busy reviewing the latest round of corporate earnings and are facing a particularly heavy week with results from some of the nation’s biggest companies. Earnings growth has been one of the pillars of the market, but the reports so far haven’t offset investors’ concerns about rising inflation, interest rate hikes and potential damage to global economic growth from pandemic-related lockdowns in China.

The S&P 500 fell 120.92 points, or 2.8% to 4,175.20. The benchmark index closed the day with 95% of its stocks losing ground. The Dow Jones Industrial Average fell 809.28 points, or 2.4%, to 33,240.18.

The tech-heavy Nasdaq bore the brunt of the day’s losses. It fell 514.11 points, or 4%, to 12,490.74. That’s its worst drop since Sept. 8, 2020. The index is now down 20% so far this year as investors shun the ultra-pricey tech sector, which had made gangbuster gains for much of the pandemic.

With the Federal Reserve set to aggressively raise interest rates as it steps up its inflation fight, traders are less and less willing to endure the lofty prices they had been paying for Microsoft, Facebook’s parent company and other tech giants.

Microsoft fell 3.7%. Google’s parent company, Alphabet, fell 3.6% in regular trading and lost another 6% in after-hours trading after reporting results that fell short of analysts’ estimates.

More big technology companies are on deck to report earnings this week, including Facebook parent’s company, Meta, on Wednesday, and Apple on Thursday.

Tesla slumped 12.2% over concerns that CEO Elon Musk will be distracted and less engaged in running the electric vehicle maker as he buys social media company Twitter, which fell 3.9%.

Retailers and other companies that rely on direct consumer spending also fell broadly. General Motors fell 4.5% while Nike slipped 5.8%.

General Electric fell 10.3% for one of the sharpest losses in the market after telling investors that inflation and other pressures are weighing on its profit forecast for the year.

Bond yields fell. The yield on the 10-year Treasury fell to 2.73% from 2.82% late Monday.

Energy companies eked out a gain, the only one of the 11 sectors in the S&P 500 to do so. The price of benchmark U.S. crude oil rose 3.2%.

After rallying the second half of March, stocks have been on shaky ground in April. The S&P 500 has fallen for three straight weeks.

“It’s the market getting a little more comfortable with a slowdown at best and recessionary fears at worst,” said Ross Mayfield, investment strategy analyst at Baird.

The last few days have been volatile as Wall Street also tries to assess how China’s strict lockdown measures to fight COVID-19 will impact the broader global economy, including hurting demand in the world’s second-largest economy. It could be prompting a resetting of expectations while Wall Street is also still focused on the Federal Reserve’s plan to raise its benchmark interest rates this year.

“The market had gotten comfortable, to an extent, with the Fed, but when you layer on demand destruction in China, it’s a little much for the market to stomach,” Mayfield said.

Outside of technology companies, earnings for industrial and retail companies remain a key focus of Wall Street for the rest of the week. Airplane maker Boeing reports its results on Wednesday. Industrial bellwether Caterpillar reports its results on Thursday, along with McDonald’s and Amazon.

Investors are closely reviewing the latest round of corporate report cards to get a better sense of how different industries are handling rising inflation, which has prompted many companies to raise prices. The results will also give a clearer picture of how consumers are reacting to higher prices on everything from food to clothing and gasoline.

In economics news, the Conference Board reported that consumer confidence dampened slightly in April but remains high. And on Friday the Commerce Department releases its personal income and spending report for March.

Persistently rising inflation has prompted the Fed to shift its monetary policy in order to aggressively fight inflation. The chair of the Fed has indicated the central bank may hike short-term interest rates by double the usual amount at upcoming meetings, starting next week. It has already raised its key overnight rate once, the first such increase since 2018.

Economists and investors are concerned that the U.S. economy might slow sharply or even fall into a recession because of the big interest-rate increases the Fed is expected to push through.

ASX 200 expected to sink again​

The Australian share market looks set to have another bad day on Wednesday following a market selloff in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 110 points or 1.5% lower this morning.

On Wall Street, the Dow Jones fell 2.4%, the S&P 500 dropped 2.8%, and the Nasdaq has crashed 3.95%. Investors were dumping equities on fears of an economic slowdown.

The S&P 500 fell 120.92 points, or 2.8% to 4,175.20. The benchmark index closed the day with 95% of its stocks losing ground. The Dow Jones Industrial Average fell 809.28 points, or 2.4%, to 33,240.18.

 

[bigdog]

Asian shares mostly higher after wobbly day on Wall Street

Asian shares have logged moderate gains after Wall Street stabilized following a sell-off in tech stocks a day earlier.

apnews.com

Stocks end mixed after another wobbly day on Wall Street​

By DAMIAN J. TROISE and ALEX VEIGA

NEW YORK (AP) — Stocks on Wall Street managed only meager gains Wednesday, after a broad rally led by technology companies faded by late afternoon, leaving the market little changed a day after a big sell-off.

The lackluster finish punctuated a wobbly start for stocks, the latest turbulence for the market as traders brace for more earnings reports from major U.S. companies this week.

The S&P 500 saw most of a midday rally evaporate and wound up with a gain of just 0.2%. The Nasdaq ended just barely in the red after the tech stock rebound petered out. The Dow Jones Industrial Average edged up 0.2%.

The indexes rallied to a strong finish late Monday only to slump on Tuesday. They are all down 1.5% or more so far this week.

“We’re kind of in this time period where we’re in front of the Fed, earnings are OK, but the forward look at just how sustainable earnings growth might be, those are certainly open questions for people in this environment,” said Eric Freedman, chief invesment officer at U.S. Bank Asset Management Group.

The S&P 500 rose 8.76 points to 4,183.96, while the Dow added 61.75 points to 33,301.93. The Nasdaq slipped 1.81 points to 12,488.93.

Smaller company stocks lost ground. The Russell 2000 fell 6.44 points, or 0.3%, to 1,884.04.

Investors reviewed the latest batch of company earnings Wednesday, including results from several big technology and communications companies.

Software giant Microsoft rose 4.8% after reporting strong profits for its most recent quarter. Payments processing giant Visa jumped 6.5% after reporting a surge in profits fueled by a large jump in spending on the company’s namesake credit and debit card network.

Alphabet, Google’s parent company, fell 3.7%, after posting its slowest quarterly revenue growth since 2020. Facebook’s parent company, Meta Platforms, jumped 14.6% in after-hours trading following its latest quarterly earnings, which topped Wall Street’s estimates.

Investors were also focused on earnings from industrial companies and various retailers. Boeing slumped 7.5% after it reported a loss that was far worse than Wall Street expected. Chipotle rose 2.6% after reporting solid financial results.

Twitter, Apple and Amazon will report their results on Thursday.

The latest round of company earnings comes amid lingering concerns about rising inflation and plans from central banks to raise interest rates in order to temper the impact of higher costs on businesses and consumers. Investors are closely watching to see how companies have fared amid supply chain problems and higher costs while assessing how consumers are dealing with higher prices for everything from food to clothing and gas.

“Everyone is dealing with this sort of whack-a-mole of risks that seems to be getting bigger as days and months go by,” said Katie Nixon, chief investment officer for Northern Trust Wealth Management.

The U.S. Federal Reserve is set to aggressively hike rates as it steps up its fight against inflation. The chair of the Fed has indicated the central bank may hike short-term interest rates by double the usual amount at upcoming meetings, starting next week. It has already raised its key overnight rate once, the first such increase since 2018.

Bond yields have generally been rising throughout the year as investors prepare for higher rates. The yield on the 10-year Treasury rose to 2.83% from 2.77% late Tuesday.

Wall Street remains focused on inflation’s path forward amid lingering threats from Russia’s war against Ukraine and the virus pandemic.

“We just keep moving more areas of uncertainty onto the pile of uncertainties,” Nixon said.

Natural gas prices surged as much as 24% over the last day in Europe and the euro weakened after Russia said it would cut off supplies to Poland and Bulgaria. Natural gas and oil prices had already been rising as the pandemic eased and demand increased, but the Russian invasion of Ukraine has added to price increases. Crude oil and and natural gas prices have jumped so far in 2022 and that has made gasoline and heating more expensive for consumers.

Strict lockdown measures in China have also added to concerns about slowing economic growth because of damage to the world’s second-largest economy. The flow of industrial goods has been disrupted by the suspension of access to Shanghai, home of the world’s busiest port, and other industrial cities including Changchun and Jilin in northeast China.

ASX 200 expected to rebound

The Australian share market looks set to rebound on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day up 52 points or 0.7% to 7285 at 6.59am AEST higher this morning.

Stocks on Wall Street managed only meager gains Wednesday, after a broad rally led by technology companies faded by late afternoon, leaving the market little changed a day after a big sell-off.

The S&P 500 saw most of a midday rally evaporate and wound up with a gain of just 0.2%. The Nasdaq ended just barely in the red after the tech stock rebound petered out. The Dow Jones Industrial Average edged up 0.2%.

The indexes rallied to a strong finish late Monday only to slump on Tuesday. They are all down 1.5% or more so far this week.