NYSE Dow Jones finished today at:

[bigdog]

Asia shares rise as Wall Street on track to end loss streak

Asian benchmarks are mostly higher, as investor optimism got a perk from a rally on Wall Street that’s on track to break a three-week losing streak.

apnews.com

Stocks charge higher on Wall Street, erasing weekly losses​

By DAMIAN J. TROISE and ALEX VEIGA

Stock indexes on Wall Street closed solidly higher Wednesday, placing the market on pace to break a 3-week losing streak.

The S&P 500 rose 1.8% Wednesday, its biggest single-day gain in four weeks, with roughly 95% of the stocks in the benchmark index closing higher.

The Dow Jones Industrial Average rose 1.4% and the tech-heavy Nasdaq climbed 2.1%. Smaller company stocks outgained the broader market, driving the Russell 2000 index 2.2% higher.

The indexes are now all in the green for the week, a welcome respite for traders after a slump in recent weeks that erased much of the market’s gains from a July and early August rally.

Wall Street watchers cautioned that the market is likely to see more volatility in coming weeks ahead of the next Federal Reserve interest rate policy update scheduled for Sept. 21.

“It’s good that there’s an up day, but I would caution anyone not to be too optimistic right now,” said Randy Frederick, managing director of trading & derivatives at Charles Schwab. “You don’t have a whole lot of reason for that.”

Stocks have been mostly losing ground in recent weeks after the Federal Reserve indicated it will not let up anytime soon on raising interest rates to bring down the highest inflation in decades.

Wall Street’s focus remains on inflation and the Fed’s attempt to rein it in with high interest rates. The central bank has already raised rates four times this year and markets expect them to deliver another jumbo-sized increase of three-quarters of a percentage point at their next meeting in two weeks.

The central bank has been clear about its determination to continue raising rates until it feels that inflation is leveling off or cooling. In June, Fed officials projected that the benchmark rate will reach a range of 3.25% to 3.5% by year’s end and roughly a half-percentage point more in 2023.

“We are in this for as long as it takes to get inflation down,” Fed Vice Chair Lael Brainard said at a banking industry conference on Wednesday. “Our resolve is firm, our goals are clear, and our tools are up to the task.”

Investors have been reviewing economic data to gauge whether price increases on everything from food to clothing and gas are easing. They are also closely listening for any clues about potential changes in policy from Fed officials.

Traders clawed back some of their recent losses with Wednesday’s rally, which pushed the S&P 500 up 71.68 points to 3,979.87. The Dow rose 435.98 points to 31,581.28, and the Nasdaq gained 246.99 points to 11,791.90.

The Russell 2000 climbed 39.68 points to 1,832.

Technology stocks and retailers made solid gains. Intuit rose 3.9%. Target rose 4.4% after announcing that it is dropping the mandatory retirement age for its CEO position, allowing CEO Brian Cornell to stay on for three more years.

United Airlines rose 5.5% after raising its revenue forecast following a busy summer travel season. The encouraging update helped several competitors take flight. American Airlines rose 5.1% and Delta Air Lines added 3.3%.

Energy stocks fell broadly as U.S. crude oil prices slid 5.7%. Chevron fell 1.3%.

Bond yields fell. The yield on the 10-year Treasury, which influences interest rates on mortgages and other loans, fell to 3.27% from 3.34% late Tuesday. The two-year Treasury yield, which tends to track expectations for Fed action, fell to 3.45% from 3.51%.

Markets in Europe closed mostly higher, while those in Asia ended mostly lower.

Traders clawed back some of their recent losses with Wednesday’s rally, which pushed the S&P 500 up 71.68 points to 3,979.87. The Dow rose 435.98 points to 31,581.28, and the Nasdaq gained 246.99 points to 11,791.90.

The S&P 500 rose 1.8% Wednesday, its biggest single-day gain in four weeks, with roughly 95% of the stocks in the benchmark index closing higher.


The Dow Jones Industrial Average rose 1.4% and the tech-heavy Nasdaq climbed 2.1%. Smaller company stocks outgained the broader market, driving the Russell 2000 index 2.2% higher.

 

[bigdog]

https://www.usnews.com/news/business/articles/2022-09-08/asia-shares-rise-as-wall-street-on-track-to-end-loss-streak

Stocks Recover From a Stumble on Wall Street and End Higher​

The stock market recovered from a midday stumble and ended higher, staying on track for its first weekly gain in four weeks.

By DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers
Stocks bounced back from a midday stumble and closed higher Thursday, keeping the major indexes on track for their first weekly gain in four weeks.

The S&P 500 closed 0.7% higher, after recovering from a 0.9% slide in the early going. The Dow Jones Industrial Average and the Nasdaq composite each gained 0.6% after making it through their own bumpy ride. The indexes are on pace for a weekly gain after posting losses for the previous three weeks.

Wall Street had its eye on interest rates, as the European Central Bank made its largest-ever rate increase to fight inflation. The move is in line with steps taken by the U.S. Federal Reserve and other central banks.

Investors also heard from Fed Chair Jerome Powell, who reaffirmed the central bank’s commitment to keep rates high as long as necessary to get inflation under control.

Traders “were initially caught off-guard by how firm the Fed’s position remains on fighting inflation,” said Sam Stovall, chief investment strategist at CFRA. “But once investors realized that he wasn’t really saying anything different than what he had said before, the markets swung back.”

The S&P 500 rose 26.31 points to 4,006.18. It's up 2.1% so far this week.

The Dow swung from a 259-point loss to a gain of 193.24 points, closing at 31,744.52. The Nasdaq gained 70.23 points to 11,862.13.
Smaller company stocks also gained ground after an initial pullback. The Russell 2000 rose 14.90 points, or 0.8%, to 1,846.91.
Stocks have been mostly losing ground in recent weeks after the Federal Reserve indicated it will not let up anytime soon on raising interest rates to bring down the highest inflation in decades. The interest rate policies of the Fed and other central banks, which also have a powerful influence on stock and bond markets, have become a major focus for investors.

On the same day the European Central Bank delivered its big rate increase, Powell told a conference on monetary policy hosted by the Cato Institute, a think tank that promotes libertarian ideas, that the Fed would keep rates high “until the job is done” in getting inflation back down to its 2% goal.

“There is a record of failed attempts to get inflation under control, which only raises the ultimate costs to society,” Powell said.
The Fed has already raised rates four times this year and markets expect it to deliver another jumbo-sized increase of three-quarters of a percentage point at its next meeting in two weeks.

Powell “sounded very resolute in the (Fed’s) mission to squelch inflation, and as a result probably gave more credence to the possibility of a 75-basis point hike at the September meeting,” Stovall said.

One of the Fed’s biggest fears is that households and businesses begin to expect inflation to stay high in the long term, which could lead them to start buying in a way that creates a vicious cycle making inflation even harder to shake.

The Fed has caught criticism for not taking inflation seriously sooner, and Powell said that setting interest-rate policy is an art as much of a science. A big question remains about whether the high inflation ravaging economies around the world is a one-off created by the pandemic or the start of something more persistent.

Bond yields rose broadly as traders weighed Powell's remarks and the ECB's rate hike. The two-year Treasury yield, which tends to track expectations for Fed action, rose to 3.52% from 3.44%. The yield on the 10-year Treasury, which influences interest rates on mortgages and other loans, rose to 3.32% from 3.27% late Tuesday.

Health care stocks accounted for a big share of the S&P 500′s gains. Regeneron Pharmaceuticals surged 18.8% after the company and partner Bayer reported encouraging study data on an anti-blindness drug.

The S&P 500 closed 0.7% higher, after recovering from a 0.9% slide in the early going. The Dow Jones Industrial Average and the Nasdaq composite each gained 0.6% after making it through their own bumpy ride. The indexes are on pace for a weekly gain after posting losses for the previous three weeks.

My apologies for late posting

John

 

[bigdog]

Stocks end broadly higher, breaking a 3-week losing streak

Stocks closed broadly higher on Wall Street, breaking a three-week losing streak. The benchmark S&P 500 index rose 1.5% on Friday, but is still well below where it was in mid-August.

apnews.com

Stocks end broadly higher, breaking a 3-week losing streak​

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street added to its recent gains Friday with a broad rally that broke the market’s three-week losing streak.

The S&P 500 closed 1.5% higher, its third straight increase, and ended with a 3.7% gain for the week. That makes it the benchmark index’s best week going back to July.

Big gains for technology companies pushed the Nasdaq composite to a 2.1% gain, while the Dow Jones Industrial Average rose 1.2%. Both indexes also notched their first weekly gain in four weeks.

The latest gains punctuated a holiday-shortened week of trading on Wall Street during which the market regained some of the ground it lost after a mid-August slump that wiped away the much of the gains from a mid-summer rally.

A weaker dollar and a reversal among short-sellers — traders who bet that the market will go lower —- appeared to be responsible for some of the rally Friday, said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

“You had a little bit of a positive catalyst in the dollar coming off today, and lo and behold that extreme positioning had to kind of be unwound,” he said. “We probably wouldn’t read too much into it. For us, anyway, the trend in (stocks) remains lower.”

The S&P 500 rose 61.18 points to 4,067.36. The index is still down about 15% so far this year.

The Dow added 377.19 points to 32,151.71, while the Nasdaq rose 250.18 points to 12,112.31.

Technology stocks and retailers had some of the biggest gains. Microsoft rose 2.3% and Amazon rose 2.7%.

DocuSign jumped 10.5% after the electronic signature company reported strong second-quarter sales and raised its subscription forecast.

All 11 industry sectors in the benchmark S&P 500 rose, though makers of household goods and utilities, which are typically considered less risky investments, lagged the market. U.S. crude oil prices rose 3.9%, helping push up energy sector stocks. Exxon Mobil rose 1.7%.

Smaller company stocks also notched solid gains. The Russell 2000 index rosed 35.94 points, or 1.9%, to 1,882.85.

Bond yields mostly rose. The yield on the 10-year Treasury, which influences interest rates on mortgages and other loans, slipped to 3.31 from 3.33% late Thursday. The two-year Treasury yield, which tends to track expectations for actions by the Federal Reserve, rose to 3.57% from 3.51%.

The Fed has been the main focus for investors as they try to figure out whether the central bank’s plan to cool the hottest inflation in four decades will work or possibly trip an already slowing economy into a recession.

Stocks spent July and part of August gaining ground on hopes that the Fed would ease up on its interest rate hikes, but slumped over the last few weeks as it became clear the central bank remained resolute in raising rates.

The central bank has already raised rates four times this year and markets expect it to deliver another jumbo-sized increase of three-quarters of a percentage point at its next meeting in two weeks. Fed officials, including Chair Jerome Powell, have all reaffirmed the central bank’s determination in raising rates until inflation is under control.

That has left investors closely watching economic data for any sign that inflation might be cooling. The calendar for such updates will be busy next week.

The Labor Department will release its report on consumer prices for August on Tuesday and a report on wholesale prices on Wednesday. On Thursday, Wall Street will get an update on retail sales for August

 

[bigdog]

On Friday, the S&P 500 rose 61.18 points to 4,067.36. The index is still down about 15% so far this year.

The Dow added 377.19 points to 32,151.71, while the Nasdaq rose 250.18 points to 12,112.31.

 

[bigdog]

Asian stocks gain ahead of US inflation report

Asian stocks have followed Wall Street higher ahead of data traders hope will show surging U.S. inflation eased in August, reducing pressure for more interest rate hikes.

apnews.com

Wall Street rallies further ahead of inflation report​

By DAMIAN J. TROISE and STAN CHOE

NEW YORK (AP) — Stocks climbed again Monday, as Wall Street made its final moves ahead of a high-stakes report that will hopefully show inflation hammered the economy less hard last month.

The S&P 500 rose 43.05, or 1.1%, to 4,110.41 for its fourth straight gain. That’s its longest winning streak since July, in the early days of the market’s bounce back from its battering earlier in the year.

The Dow Jones Industrial Average gained 229.63, or 0.7%, to 32,381.34, and the Nasdaq composite rallied 154.10, or 1.3%, to 12,266.41.

The nation’s punishingly high inflation, and the steps the Federal Reserve is taking to combat it, have been the driving forces on Wall Street all year. Economists expect a report on Tuesday to show that prices for consumers were 8.1% higher in August than a year earlier, but that inflation was not as bad as July’s 8.5% rate.

A slowdown would bolster hopes that inflation topped out in June at 9.1% and is on its way back down. That in turn could allow the Federal Reserve to avoid a worst-case scenario for markets, where it jacks short-term interest rates up to recession-causing levels and holds them there a long time.

“This week is going to be very telling,” said James Demmert, founder and managing partner at Main Street Research.

Beyond Tuesday’s headliner report on inflation at the consumer level, a report on Wednesday is expected to show inflation slowed at the wholesale level last month. A report the following day will show how U.S. households have altered their spending amid high inflation, while a Friday report will show how much inflation households are preparing for in upcoming years.

They’re all crucial data points for the Federal Reserve as it mulls how much to raise interest rates at its meeting next week. Fed officials have loudly reaffirmed recently their plans to raise rates enough to slow the economy, plus their commitment to keeping rates high for long enough to ensure the job is done on inflation.

But with Tuesday’s report possibly continuing a trend, many investors and economists are hopeful that inflation could return to more “normal” levels quickly, unlike the 1970s, when it took many years.

Jonathan Golub, chief U.S. equity strategist at Credit Suisse, wrote in a report that investors and economists expect inflation to collapse within the next 12 to 18 months.

Markets are fairly convinced the Fed will hike its key short-term interest rate by a hefty 0.75 percentage points next week for the third straight meeting. But the hope is that an easing of inflation will allow the Federal Reserve to successfully tiptoe the narrow pathway for a “soft landing” of the economy.

That’s where higher rates slow the economy enough to halt inflation but not so much as to cause a scarring recession. Higher rates hurt the economy by making it more expensive to buy a house, a car or anything else bought on credit. They also push down on prices for stocks, bonds and other investments.

Many traders are forecasting the Fed will begin downshifting the size of its rate increases after next week through the end of the year, before potentially keeping rates steady through the first half of 2023.

Of course, such hopes could also be setting Wall Street up for disappointment. The economy has given head fakes on inflation before, with hopes percolating that a peak has passed only to begin accelerating again.

Demmert said the broader market is looking for inflation to not just peak, but to start cooling meaningfully. He said the strong hopes for Tuesday’s inflation report are likely “not going to be healthy for stocks.”

Wall Street economists are still split on whether the U.S. economy will fall into a recession next year because of higher interest rates and other factors.

The Fed has already raised short-term rates four times this year, and its aggressive moves have helped the value of the U.S. dollar soar against many other foreign currencies.

A strong dollar helps to limit inflation at home by pushing down on prices for commodities and imports, but it can also hurt profits for U.S. companies that have a lot of sales coming from overseas. The dollar gave up some of its gains on Monday after slipping against the euro, British pound and several others.

Treasury yields were mixed. The 10-year Treasury yield, which helps control where mortgages and rates for other loans are heading, is back at 3.34%, close to its highest level in more than a decade.

The two-year yield, which tends to track expectations for Fed action, held steady at 3.56%. It remains close to its highest level since before the 2008 financial crisis.

In the stock market, the vast majority of stocks rallied. Energy producers were close to the top of the leaderboard, benefiting from climbing oil prices.

Bristol-Myers Squibb gained 3.1% for one of the biggest gains in the S&P 500 after federal regulators approved its treatment for adults with moderate to severe plaque psoriasis.

The S&P 500 rose 43.05, or 1.1%, to 4,110.41 for its fourth straight gain. That’s its longest winning streak since July, in the early days of the market’s bounce back from its battering earlier in the year.

The Dow Jones Industrial Average gained 229.63, or 0.7%, to 32,381.34, and the Nasdaq composite rallied 154.10, or 1.3%, to 12,266.41.

 

[bigdog]

Asian markets open lower after price data slam Wall Street

Asian markets have skidded lower after Wall Street fell the most since June 2020 as a report showed inflation has kept a surprisingly strong grip on the U.S. economy.

apnews.com

Markets shudder on dashed inflation hopes; Dow falls 1,250​

By STAN CHOE and ALEX VEIGA

NEW YORK (AP) — The Dow Jones Industrial Average sank more than 1,250 points Tuesday, its steepest sell-off in more than two years, after a government report showed that inflation is maintaining a surprisingly strong grip on the U.S. economy.

The S&P 500 sank 4.3%, its biggest drop since June 2020. The Dow fell 3.9% and the Nasdaq composite closed 5.2% lower. The sell-off ended a four-day winning streak for the major stock indexes and erased an early rally in European markets.

Bond prices also fell sharply, sending their yields higher, after a report showed inflation decelerated only to 8.3% in August, instead of the 8.1% economists expected.

The hotter-than-expected reading has traders bracing for the Federal Reserve to ultimately raise interest rates even higher than expected to combat inflation, with all the risks for the economy that entails. Fears about higher rates sent prices dropping for everything from gold to cryptocurrencies to crude oil.

“Right now, it’s not the journey that’s a worry so much as the destination,” said Brian Jacobsen, senior investment strategist at Allspring Global Investments. “If the Fed wants to hike and hold, the big question is at what level.”

The S&P 500 fell 177.72 points to 3,932.69. The drop didn’t quite knock out its gains over the past four days. The index is now down 17.5% so far this year.

The Dow lost 1,276.37 points to 31,104.97, and the Nasdaq dropped 632.84 points to 11,633.57.

All but six of the stocks in the S&P 500 fell. Technology and other high-growth companies fell more than the rest of the market because they’re seen as most at risk from higher rates.

Most of Wall Street came into the day thinking the Fed would hike its key short-term rate by a hefty three-quarters of a percentage point at its meeting next week. But the hope was that inflation was in the midst of quickly falling back to more normal levels after peaking in June at 9.1%.

The thinking was that such a slowdown would let the Fed downshift the size of its rate hikes through the end of this year and then potentially hold steady through early 2023.

Tuesday’s report dashed some of those hopes.

“This piece of data just hammered home that the Fed isn’t going to have the data to do anything differently than continue on their rate-raising path for longer,” said Tom Martin, senior portfolio manager with Globalt Investments. “It just increases the chance of an actual recession.”

Many of the data points within the inflation report were worse than economists expected, including some the Fed pays particular attention to, such as inflation outside of food and energy prices.

Markets honed in on a 0.6% rise in such prices during August from July, double what economists expected, said Gargi Chaudhuri, head of investment strategy at iShares.

The inflation figures were so much worse than expected that traders now see a one-in-three chance for a rate hike of a full percentage point by the Fed next week. That would be quadruple the usual move, and no one in the futures market was predicting such a hike a day earlier.

The Fed has already raised its benchmark interest rate four times this year, with the last two increases by three-quarters of a percentage point. The federal funds rate is currently in a range of 2.25% to 2.50%.

“The Fed can’t let inflation persist. You have to do whatever is necessary to stop prices from going up,” said Russell Evans, managing principal at Avitas Wealth Management. “This indicates the Fed still has a lot of work to do to bring inflation down.”

Higher rates hurt the economy by making it more expensive to buy a house, a car or anything else bought on credit. Mortgage rates have already hit their highest level since 2008, creating pain for the housing industry. The hope is that the Fed can pull off the tightrope walk of slowing the economy enough to snuff out high inflation, but not so much that it creates a painful recession.

Tuesday’s data puts hopes for such a “soft landing” under more threat. In the meantime, higher rates also push down on prices for stocks, bonds and other investments.

Investments seen as the most expensive or the riskiest are the ones hardest hit by higher rates. Bitcoin tumbled 9.4%.

To be sure, the stock market’s losses only return the S&P 500 close to where it was before its recent winning streak. That run was built on hopes that Tuesday’s inflation report would show a more comforting slowdown. The ensuing wipeout fits what’s become a pattern on Wall Street this year: Stocks fall on worries about inflation, turn higher on hopes the Fed may ease up on rates and then fall again when data undercuts those hopes.

Treasury yields leaped immediately on expectations for a more aggressive Fed. The yield on the two-year Treasury, which tends to track expectations for Fed actions, soared to 3.74% from 3.57% late Monday. The 10-year yield, which helps dictate where mortgages and rates for other loans are heading, rose to 3.42% from 3.36%.

Expectations for a more aggressive Fed also helped the dollar add to its already strong gains for this year. The dollar has been surging against other currencies in large part because the Fed has been hiking rates faster and by bigger margins than many other central banks.

The Dow Jones Industrial Average sank more than 1,250 points Tuesday, its steepest sell-off in more than two years, after a government report showed that inflation is maintaining a surprisingly strong grip on the U.S. economy.

The S&P 500 sank 4.3%, its biggest drop since June 2020. The Dow fell 3.9% and the Nasdaq composite closed 5.2% lower.

The S&P 500 fell 177.72 points to 3,932.69. The drop didn’t quite knock out its gains over the past four days. The index is now down 17.5% so far this year.

The Dow lost 1,276.37 points to 31,104.97, and the Nasdaq dropped 632.84 points to 11,633.57.

 

[bigdog]

Asian shares mostly higher after wobbly gains on Wall St

Asian shares are mostly higher after modest gains on Wall Street. Shanghai's benchmark lost 1% while other markets advanced.

apnews.com

Stocks manage to post modest gains after a wobbly day​

By DAMIAN J. TROISE and ALEX VEIGA

Stocks on Wall Street shook off an afternoon slide and finished modestly higher Wednesday, clawing back some of their losses a day after the market’s worst skid in two years.

The wobbly trading came as investors weighed another snapshot of inflation. Markets have been on edge about the possibility of a recession after a string of interest rate hikes by the Federal Reserve this year as the central bank fights inflation.

The S&P 500 rose 0.3% after wavering between small gains and losses much of the afternoon. The benchmark index was coming off its biggest drop since June 2020, which ended a four-day winning streak.

The Dow Jones Industrial Average closed 0.1% higher, while the Nasdaq composite rose 0.7%. Smaller company stocks also rose, pushing the Russell 2000 to a 0.4% gain.

Bond yields remained relatively stable after leaping higher on Tuesday. The yield on the two-year Treasury rose to 3.79% from 3.75% late Tuesday, when it soared on expectations for more aggressive interest rate hikes by the Federal Reserve.

The yield on the 10-year Treasury, which helps dictate where mortgages and rates for other loans are heading, held steady at 3.41%.

A report on inflation at the wholesale level showed prices are still rising rapidly, with pressures building underneath the surface, even if overall inflation slowed. It echoed a report on inflation at the consumer level Tuesday, which raised expectations for interest-rate hikes and triggered a rout for markets.

Still, the overall decline in inflation at the wholesale level helped assuage fears in the market that inflation at all levels is intensifying, said Quincy Krosby, chief equity strategist for LPL Financial.

“The market would have probably had another round of selling had the headline number been higher,” Krosby said. “The fact that it dipped a bit was helpful for today’s market.”

Traders now see a one-in-four chance the Fed may hike its benchmark rate by a full percentage point next week, quadruple the usual move, according to CME Group. A day earlier, it was closer to a one-in-three chance. The site puts the probability of a three-quarter percentage point increase now at 76%, up from 69% on Tuesday.

The central bank has already raised its benchmark interest rate four times this year, with the last two increases by three-quarters of a percentage point.

The Fed is taking the aggressive action on interest rates to try and cool the hottest inflation in four decades. Tuesday’s report on high prices jolted the market with signs that inflation is entering a more stubborn phase that could require an already resolute Fed to become more aggressive.

Wall Street is especially worried that the rate hikes could go too far in slowing the economy and send it into a recession. The Fed is trying to avoid that outcome, but the latest inflation reports reveal that is becoming a more difficult task.

All told, the S&P 500 rose 13.32 points to 3,946.01, while the Dow added 30.12 points to 31,135.09. The Nasdaq gained 86.10 points to 11,719.68, and the Russell 2000 picked up 6.89 points to close at 1,838.46.

Energy stocks had some of the biggest gains as U.S. crude oil prices rose 1.3%. Exxon Mobil rose 2.5%.

“Today you have some investors coming off the sidelines, coming back into the market because there’s this feeling that the sell-off was a big one, there was a recalibration there, there was a little bit of panic selling there,” said Sylvia Jablonski, chief investment officer at Defiance ETFs.

The broader U.S. economy has been slowing, but consumers have remained resilient and the job market remains strong. Wall Street will get another update on inflation’s latest impact on spending when the government releases its retail sales report for August on Thursday.

The market is also monitoring U.S.-China tensions and war in Ukraine, while business and government officials are bracing for the possibility of a nationwide rail strike at the end of this week that could paralyze an already discombobulated supply chain.

The railroads have already started to curtail shipments of hazardous materials and have announced plans to stop hauling refrigerated products ahead of Friday’s strike deadline. Businesses that rely on Norfolk Southern, Union Pacific, BNSF, CSX, Kansas City Southern and other railroads to deliver their raw materials and finished products are planning for the worst.

Union Pacific fell 3.7% and Norfolk Southern fell 2.2%.

Biden administration officials are scrambling to develop a plan to keep goods moving if the railroads shut down. The White House is also pressuring the two sides to settle their differences, and a growing number of business groups are lobbying Congress to be prepared to intervene and block a strike if they can’t reach an agreement

The S&P 500 rose 0.3% after wavering between small gains and losses much of the afternoon. The benchmark index was coming off its biggest drop since June 2020, which ended a four-day winning streak.

The Dow Jones Industrial Average closed 0.1% higher, while the Nasdaq composite rose 0.7%. Smaller company stocks also rose, pushing the Russell 2000 to a 0.4% gain.

 

[bigdog]

https://www.usnews.com/news/business/articles/2022-09-15/asian-shares-mixed-after-wobbly-gains-on-wall-st

Stocks Fall, Indexes Slip Deeper Into the Red for the Week​

Stocks closed lower on Wall Street, putting major indexes deeper in the red for the week.

By Associated Press

By DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers
Stocks closed lower on Wall Street, putting major indexes deeper in the red for the week. The S&P 500 fell 1.1% on Thursday. The benchmark index is down for the week following the biggest pullback for the market in more than two years on Tuesday. Railroad operators were mostly higher after a tentative labor agreement was reached, averting a strike across the country that could have been devastating to the economy. Software maker Adobe fell sharply after announcing a $20 billion acquisition of a design company and issuing a disappointing revenue forecast for the current quarter.

Stocks are lower in afternoon trading on Wall Street Thursday, putting major indexes deeper in the red for the week.

The S&P 500 fell 1.4% as of 3:35 p.m. Eastern. The benchmark index is down 4.3% for the week following the biggest pullback for the market in more than two years on Tuesday.

The Dow Jones Industrial Average shed an early gain and was down 220 points, or 0.7%, to 30,909 and the Nasdaq fell 1.7%.

Technology stocks were among the biggest weights on the broader market. Adobe slumped 17.2%, the largest drop among S&P 500 stocks, after the software maker announced a $20 billion acquisition of a design company and issued a disappointing revenue forecast.
U.S. crude oil prices fell 3.8% and weighed on energy stocks. Hess fell 2.9%.

Railroad operators were mostly higher after a tentative labor agreement was reached, averting a strike across the country that could have been devastating to the economy. Union Pacific rose 0.1%.

Bond yields rose. The yield on the 10-year Treasury, which helps dictate where mortgages and rates for other loans are heading, rose to 3.46% from 3.40% late Wednesday. The yield on the two-year Treasury rose to 3.86% from 3.79%.

Investors were digesting the latest report on retail sales, which gave a mixed view of how consumers are coping with the hottest inflation in four decades. The government report showed that retail sales rose an unexpected 0.3% in August after falling 0.4% in July. Inflation hurt several areas of spending, though, with business at restaurants still growing, but at a slower pace, while furniture and online sales fell.

Consumer spending has been a strong point in the broader economy, along with employment, as inflation continues to squeeze businesses and consumers. High prices and the Federal Reserve's aggressive plan to raise interest rates as a solution remains Wall Street's main focus.

A hotter-than-expected August report on consumer prices Tuesday spooked the market and dashed hopes that the Fed might consider easing its rate hikes. It was followed on Wednesday by a report that wholesale prices are still rising.

Investors worry rate hikes by the Fed could go too far in slowing the U.S. economy and send it into a recession. The central bank has already raised its benchmark interest rate four times this year, with the last two increases by three-quarters of a percentage point. Traders now see a 1-in-5 chance the Fed may hike its benchmark rate by a full percentage point next week, quadruple the usual move, according to the CME Group.

Stocks are lower in afternoon trading on Wall Street Thursday, putting major indexes deeper in the red for the week.

The S&P 500 fell 1.4% as of 3:35 p.m. Eastern. The benchmark index is down 4.3% for the week following the biggest pullback for the market in more than two years on Tuesday.

The Dow Jones Industrial Average shed an early gain and was down 220 points, or 0.7%, to 30,909 and the Nasdaq fell 1.7%.

 

[JohnDe]

https://www.usnews.com/news/business/articles/2022-09-15/asian-shares-mixed-after-wobbly-gains-on-wall-st

Stocks Fall, Indexes Slip Deeper Into the Red for the Week​

Stocks closed lower on Wall Street, putting major indexes deeper in the red for the week.

By Associated Press

By DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers
Stocks closed lower on Wall Street, putting major indexes deeper in the red for the week. The S&P 500 fell 1.1% on Thursday. The benchmark index is down for the week following the biggest pullback for the market in more than two years on Tuesday. Railroad operators were mostly higher after a tentative labor agreement was reached, averting a strike across the country that could have been devastating to the economy. Software maker Adobe fell sharply after announcing a $20 billion acquisition of a design company and issuing a disappointing revenue forecast for the current quarter.

Stocks are lower in afternoon trading on Wall Street Thursday, putting major indexes deeper in the red for the week.

The S&P 500 fell 1.4% as of 3:35 p.m. Eastern. The benchmark index is down 4.3% for the week following the biggest pullback for the market in more than two years on Tuesday.

The Dow Jones Industrial Average shed an early gain and was down 220 points, or 0.7%, to 30,909 and the Nasdaq fell 1.7%.

Technology stocks were among the biggest weights on the broader market. Adobe slumped 17.2%, the largest drop among S&P 500 stocks, after the software maker announced a $20 billion acquisition of a design company and issued a disappointing revenue forecast.
U.S. crude oil prices fell 3.8% and weighed on energy stocks. Hess fell 2.9%.

Railroad operators were mostly higher after a tentative labor agreement was reached, averting a strike across the country that could have been devastating to the economy. Union Pacific rose 0.1%.

Bond yields rose. The yield on the 10-year Treasury, which helps dictate where mortgages and rates for other loans are heading, rose to 3.46% from 3.40% late Wednesday. The yield on the two-year Treasury rose to 3.86% from 3.79%.

Investors were digesting the latest report on retail sales, which gave a mixed view of how consumers are coping with the hottest inflation in four decades. The government report showed that retail sales rose an unexpected 0.3% in August after falling 0.4% in July. Inflation hurt several areas of spending, though, with business at restaurants still growing, but at a slower pace, while furniture and online sales fell.

Consumer spending has been a strong point in the broader economy, along with employment, as inflation continues to squeeze businesses and consumers. High prices and the Federal Reserve's aggressive plan to raise interest rates as a solution remains Wall Street's main focus.

A hotter-than-expected August report on consumer prices Tuesday spooked the market and dashed hopes that the Fed might consider easing its rate hikes. It was followed on Wednesday by a report that wholesale prices are still rising.

Investors worry rate hikes by the Fed could go too far in slowing the U.S. economy and send it into a recession. The central bank has already raised its benchmark interest rate four times this year, with the last two increases by three-quarters of a percentage point. Traders now see a 1-in-5 chance the Fed may hike its benchmark rate by a full percentage point next week, quadruple the usual move, according to the CME Group.



Stocks are lower in afternoon trading on Wall Street Thursday, putting major indexes deeper in the red for the week.

Not all tech stocks hurting, ARKK & TSLA holding up.

Looks like Reserve banks are not going to let up until they slay the dragon, regardless of the collateral damage.

 

[bigdog]

Wall Street falls as FedEx warning adds to market woes

Stocks fell broadly on Wall Street, leaving the market with another week of sizable losses, as a stark warning from FedEx about rapidly worsening trends in the economy gave investors more to worry about.

apnews.com

Wall Street falls as FedEx warning adds to market woes​

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street closed out the stock market’s worst week in three months with more losses Friday, as a stark warning from FedEx about rapidly worsening trends in the economy rattled already anxious investors.

The S&P 500 fell 0.7%, with all but two of its 11 company sectors ending in the red. The benchmark index sank 4.8% for the week, with much of the loss coming from a 4.3% rout on Tuesday following a surprisingly hot report on inflation. The last time it posted a bigger weekly decline was the week ended June 17.

The Dow Jones Industrial Average fell 0.5% and the Nasdaq composite dropped 0.9%. The Russell 2000 index of smaller companies took the heaviest losses, falling 1.5%.

All the major indexes have now posted losses four out of the past five weeks.

FedEx sank 21.4% for its biggest single-day sell-off on record after warning investors that profits for its fiscal first-quarter will likely fall short of forecasts because of a dropoff in business. The package delivery service is also shuttering storefronts and corporate offices and expects business conditions to further weaken.

Industrial giant General Electric also helped put traders in a selling mood after its chief financial officer said the company is still bogged down by supply chain problems that were raising costs. GE shares fell 3.7%.

The worrisome corporate updates hit a market already on edge because of stubbornly high inflation as well as the higher interest rates being used to fight it, which will slow the economy. Wall Street is bracing for another hefty interest rate hike from the Federal Reserve next week following a meeting of central bank policymakers.

“Based on this week’s market results there’s no question that investors are going into the weekend, No. 1 very concerned about the U.S. economy looking into the balance of this year and No. 2, with all eyes focused on next week’s Fed action,” said Greg Bassuk, CEO at AXS Investments.

The S&P 500 fell 28.02 points to 3,873.33. It’s now down 18.7% so far this year.

The Dow dropped 139.40 points to 30,822.42 and the Nasdaq slid 103.95 points to 11,448.40. The Russell 2000 gave up 27.04 points to 1,798.19.

Technology stocks, banks and energy firms had some of the biggest losses. Adobe fell 3.1%, Bank of America dropped 1.1% and Chevron slid 2.6%

Makers of household goods, which are typically considered less risky investments, held up better than the rest of the market. Campbell Soup rose 1.3%.

The Federal Reserve is aggressively raising interest rates in an effort to cool the hottest inflation in four decades, but that has raised worries that it could hit the brakes too hard and slide the economy into a recession. The central bank has already raised interest rates four times this year and economists expect another jumbo increase of three-quarters of a point when the Fed’s leaders meet next week.

Higher interest rates tend to weigh on stocks, especially the pricier technology sector. Technology stocks within the S&P 500 are down more than 26% for the year and communications companies have shed more than 34%. They are the worst performing sectors within the benchmark index so far this year

The housing sector is also hurting as interest rates rise. Average long-term U.S. mortgage rates climbed above 6% this week for the first time since the housing crash of 2008. The higher rates could make an already tight housing market even more expensive for homebuyers.

Reports this week from the government showed that prices for just about everything but gas are still rising, the job market is still red-hot and consumers continue to spend, all of which give ammunition to Fed officials who say the economy can tolerate more rate hikes.

“The market is really looking at data in terms of what the Fed is going to do next year and how far they’ll have to go,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute. “I think they’ll be in a good spot after September, where they’ll have plenty of flexibility to get where they want to be by the end of the year.”

Treasury yields eased a bit Friday after a report showed expectations for inflation among U.S. households are falling to their lowest levels since last year. That’s a positive for markets because the Fed fears a rise in such expectations would make inflation much tougher to fight. But the survey also showed uncertainty remains very high among households about where inflation is heading.

The yield on the 2-year Treasury, which tends to follow expectations for Fed action, fell to 3.85% from 3.92% shortly before the report’s release. The 10-year yield fell to 3.45% from 3.49%

 

[bigdog]

The S&P 500 fell 0.7%, with all but two of its 11 company sectors ending in the red. The benchmark index sank 4.8% for the week, with much of the loss coming from a 4.3% rout on Tuesday following a surprisingly hot report on inflation. The last time it posted a bigger weekly decline was the week ended June 17.

The Dow Jones Industrial Average fell 0.5% and the Nasdaq composite dropped 0.9%. The Russell 2000 index of smaller companies took the heaviest losses, falling 1.5%.

All the major indexes have now posted losses four out of the past five weeks.

 

[bigdog]

US stocks rise ahead of expected interest rate hike by Fed

Stocks closed higher on Wall Street after swaying between small gains and losses much of the day as investors brace for another big interest rate increase this week from the Federal Reserve.

apnews.com

US stocks rise ahead of expected interest rate hike by Fed​

By DAMIAN J. TROISE and ALEX VEIGA

A choppy day of trading on Wall Street ended with stocks closing higher Monday as investors brace for another big interest rate increase this week from the Federal Reserve.

The indexes swayed between modest gains and losses for much of the day before a burst of buying in the final hour of trading. The S&P 500 rose 0.7%, climbing back from a 0.9% slide. The Dow Jones Industrial Average rose 0.6% and the Nasdaq composite climbed 0.8%.

Technology stocks, retailers, banks and industrial companies helped lift the market. Apple rose 2.5%, Home Depot gained 1.6%, Bank of America rose 1.7% and United Airlines closed 3.3% higher.

Health care and real estate stocks fell, tempering gains elsewhere in the market. Pfizer fell 1.3% and Welltower slid 2.2%.

The yield on the 2-year Treasury, which tends to follow expectations for Fed action, rose to 3.94% from 3.87% late Friday. The 10-year yield, which influences mortgage rates, rose to 3.49% from 3.45%.

Smaller company stocks also gained ground. The Russell 2000 closed 0.8% higher.

Trading volume was lower than usual, a sign most traders were not eager to make big changes ahead of the Federal Reserve’s interest rate policy announcement Wednesday afternoon, said Scott Ladner, chief investment officer at Horizon Investments.

“No one really wants to position ahead of it,” he said. “It’s been such a slippery market on both the upside and the downside.”

The S&P 500 rose 26.56 points to 3,899.89, while the Dow added 197.26 points to 31,019.68. The Nasdaq rose 86.62 points to 11,535.02 and the Russell 2000 added 14.65 points to 1,812.84.

Wall Street remains focused on inflation and the Federal Reserve’s attempt to lower prices by aggressively raising interest rates. On Wednesday, the central bank will announce its latest decision on rates. It is expected to raise its benchmark rate, which influences interest rates throughout the economy, another three-quarters of a percentage point.

The broader market is coming off of its worst week in three months following a surprisingly hot report on inflation and big companies, including FedEx, warning about worsening trends in the economy.

Wall Street has been worried that the Fed’s plan to cool the hottest inflation in four decades could be too aggressive and throw the economy into a recession by pumping the brakes on growth too hard. The higher rates also tend to weigh on stocks, especially the pricier technology sector

Investors will get another update on the housing sector on Wednesday when the National Association of Realtors releases August figures for sales of previously occupied homes.

Average long-term U.S. mortgage rates climbed above 6% last week for the first time since the housing crash of 2008. The higher rates could make an already tight housing market even more expensive for American homebuyers.

Britain was observing a day of mourning for Queen Elizabeth II. Germany’s DAX rose 0.5% while the CAC 40 in Paris fell 0.3%. Hong Kong’s Hang Seng lost 1% while the Shanghai Composite index shed 0.3%. Japan’s markets were closed for a holiday.

A choppy day of trading on Wall Street ended with stocks closing higher Monday as investors brace for another big interest rate increase this week from the Federal Reserve.

The indexes swayed between modest gains and losses for much of the day before a burst of buying in the final hour of trading. The S&P 500 rose 0.7%, climbing back from a 0.9% slide. The Dow Jones Industrial Average rose 0.6% and the Nasdaq composite climbed 0.8%.

The S&P 500 rose 26.56 points to 3,899.89, while the Dow added 197.26 points to 31,019.68. The Nasdaq rose 86.62 points to 11,535.02 and the Russell 2000 added 14.65 points to 1,812.84.

 

[bigdog]

Asian shares decline ahead of Fed decision on interest rates

Asian shares have mostly declined as investors looked ahead to a widely expected interest rate hike by the U.S.

apnews.com

Stocks close lower ahead of Fed decision on interest rates​

By DAMIAN J. TROISE and ALEX VEIGA

Stocks finished broadly lower Tuesday as Wall Street, increasingly anxious about the slowing economy, looks ahead to a widely expected interest rate hike by the Federal Reserve in its bid to squash the highest inflation in decades.

The S&P 500 index fell 1.1%, as more than 90% of stocks and every sector in the benchmark index lost ground. The Dow Jones Industrial Average and Nasdaq composite also fell 1%.

The selling came as traders waited to see how high the Fed will raise interest rates at its meeting that ends Wednesday. The central bank is widely expected to announce a hefty three-quarters of a point interest rate increase, its third such hike in a row. Investors also will be listening intently to Fed Chair Jerome Powell for any clues on how aggressively the Fed will move from here to tame inflation.

“The market is certainly bracing for the worst and you’re seeing a little bit of selling pressure coming in,” said Paul Kim, CEO of Simplify ETFs

The S&P 500 fell 43.96 points to 3,855.93, while the Dow dropped 313.45 points to 30,706.23. The Nasdaq lost 109.97 points to close at 11,425.05.

Retailers, technology stocks, health care companies and banks were among the biggest weights on the market. Best Buy fell 4.1%, Microsoft slid 0.8%, Abbott Laboratories dropped 1.7% and JPMorgan Chase closed 2% lower

U.S. crude oil prices fell 1.5% and weighed down energy stocks. Exxon Mobil fell 0.8%.

Smaller company stocks fell more than the broader market. The Russell 2000 index gave up 25.34 points, or 1.4%, to 1,787.50.

Bond yields mostly edged higher. The yield on the 10-year Treasury, which influences mortgage rates, rose to 3.56% from 3.52% from late Monday and is trading at its highest levels since 2011.

The yield on the 2-year Treasury, which tends to follow expectations for Fed action, held steady at 3.95%, hovering around its highest levels since 2007.

Stocks have been slumping and Treasury yields rising as the Fed raises the cost of borrowing money in hopes of slowing down the hottest inflation in four decades. The central bank’s aggressive rate hikes have been making markets jittery, especially as Fed officials assert their determination to keep raising rates until they are sure inflation is coming under control.

Powell bluntly warned in a speech last month that the rate hikes would “bring some pain.”

“He has done everything he possibly can to signal that it’s going to be another aggressive move,” said Liz Young, head of investment strategy at SoFi. “He’s been clear as a bell about what they’ve been focused on.”

The Fed is expected to raise its key short-term rate by a substantial three-quarters of a point for the third time at its meeting on Wednesday. That would lift its benchmark rate, which affects many consumer and business loans, to a range of 3% to 3.25%, the highest level in 14 years, and up from zero at the start of the year.

If the Fed matches expectations for a three-quarters of a point increase, that may give stocks a small boost, reflecting relief among traders that the central bank didn’t opt for a 1% increase, said Kim.

Beyond that, investors will be focused on what Powell has to say, both in the Fed’s latest interest rate policy statement and during an afternoon press conference, for clues as to whether the central bank remains primarily focused on lowering inflation, or if there’s a hint the Fed is giving more consideration to the impact of higher rates on the economy.

“As long as the Fed sticks to this game of chicken and sticks to inflation as its only mandate, the market will keep dropping,” Kim said.

Wall Street is worried that the rate hikes could go too far in slowing economic growth and push the economy into a recession. Those concerns have been heightened by data showing that the U.S. economy is already slowing and by companies warning about the impact of inflation and supply chain problems to their operations.

Ford fell 12.3% for the biggest decline in the S&P 500 after slashing its third-quarter earnings forecast because a parts shortage will leave it with as many as 45,000 vehicles unfinished on its lots when the quarter ends Sept. 30. Last week, FedEx and General Electric warned investors about damage to their operations from inflation.

The U.S. isn’t alone in suffering from hot inflation or dealing with the impact of efforts to fight high prices.

Sweden’s central bank on Tuesday raised its key interest rate by a full percentage point to 1.75%, catching almost everyone off guard as it scrambles to bring down inflation that was measured at 9% in August.

Consumer inflation in Japan jumped in August to 3%, its highest level since November 1991 but well below the 8% plus readings in the U.S. and Europe. The Bank of Japan is set to have a two-day monetary policy meeting later this week, although analysts expect the central bank to stick to its easy monetary policy.

Rate decisions from Norway, Switzerland and the Bank of England are next.

Markets in Europe mostly fell, while markets in Asia gained ground.

Stocks finished broadly lower Tuesday as Wall Street, increasingly anxious about the slowing economy, looks ahead to a widely expected interest rate hike by the Federal Reserve in its bid to squash the highest inflation in decades.

The S&P 500 index fell 1.1%, as more than 90% of stocks and every sector in the benchmark index lost ground. The Dow Jones Industrial Average and Nasdaq composite also fell 1%.

 

[bigdog]

Australia Stock Exchange holiday is National Mourning Day and will be observed on Thursday, September 22, 2022

Stocks slump on Wall Street as Fed steps up inflation fight

Stocks closed lower Wednesday after the Federal Reserve made another big interest rate hike and sharply increased its outlook for how high it expects to raise rates in coming months. Short-term Treasury yields pushed further into multiyear highs after the central bank raised its benchmark rate...

apnews.com

Stocks slump on Wall Street as Fed steps up inflation fight​

By DAMIAN J. TROISE and ALEX VEIGA

Stocks closed lower Wednesday after the Federal Reserve made another big interest rate hike and sharply increased its outlook for how high it expects to raise rates in coming months.

Short-term Treasury yields pushed further into multiyear highs after the central bank raised its benchmark rate by three-quarters of a point. The Fed also said it now expects that rate to be a full percentage point higher by the end of the year than it had predicted in June.

“We have got to get inflation behind us,” Fed Chair Jerome Powell said during a press conference. “I wish there were a painless way to do that. There isn’t.”

The S&P 500 fell 1.7% to its lowest level since mid-July after wavering between gains and losses as traders considered the impact of the Fed’s update on interest rates, which have widespread effects on markets and the economy.

The Dow Jones Industrial Average also fell 1.7% after flipping between gains and losses. The Nasdaq composite lost 1.8%. The major indexes are on pace for their fifth weekly loss in six weeks.

The yield on the 2-year Treasury, which tends to follow expectations for Fed action, rose to 4.02% from 3.97% late Tuesday. It is trading at its highest level since 2007. The yield on the 10-year Treasury, which influences mortgage rates, fell to 3.52% from 3.56% from late Tuesday

The Fed is raising rates to fight the worst inflation in 40 years. The worry is that the Fed may cause a recession by slowing the economy too much.

“Ultimately, the policy appears to be appropriate given the economic backdrop, but investors should prepare for rough seas ahead as aggressive Fed policy usually leaves a path of destruction in the wake behind,” said Charlie Ripley, senior investment strategist at Allianz Investment Management.

The S&P 500 fell 66 points to 3,789.93. The Dow slid 522.45 points to 30,183.78, and the Nasdaq lost 204.86 points to close at 11,220.19.

Smaller company stocks also slumped. The Russell 2000 index fell 25.35 points, or 1.4%, to 1,762.16.

The broader market has been lurching between gains and losses throughout the week ahead of the latest update on interest rates from the Fed.

More than 90% of the stocks in the S&P 500 fell, with retailers, banks and technology companies among the heaviest weights on the benchmark index. Amazon dropped 3%, Bank of America shed 3% and Apple fell 2%

The Fed has been raising rates aggressively to try and tame high prices on everything from food to clothing.

During his press conference, Powell stressed his resolve to lift rates high enough to slow the economy and drive inflation back toward the central bank’s 2% goal. Powell said the Fed has just started to get to that level with this most recent increase.

The central bank’s latest rate hike lifted its benchmark rate, which affects many consumer and business loans, to a range of 3% to 3.25%, the highest level in 14 years, and up from zero at the start of the year.

“The Fed is pivoting, but not in the direction that many hoped for,” said Willie Delwiche, investment strategist at All Star Charts. “Not only are they indicating that rates will be higher for longer but they expect to persist even as the economy slows more dramatically remains weaker longer than they were expecting as recently as June.”

The Fed’s goal is to slow economic growth and cool inflation, but Wall Street is worried that it could hit the brakes too hard on an already slowing economy and cause a recession. Those concerns have been reinforced by reports showing that inflation remains stubbornly high and statements from Fed officials they will keep raising rates until they are sure inflation is coming under control.

Central banks worldwide are also dealing with inflation. The Bank of Japan began a two-day monetary policy meeting Wednesday, although analysts expect the central bank to stick to its easy monetary policy. Rate decisions from Norway, Switzerland and the Bank of England are next. Sweden surprised economists this week with a full-point hike.

Global tensions remain high as Russia’s invasion of Ukraine continues. Russian-controlled regions of eastern and southern Ukraine have announced plans to start voting this week to become part of Russia. The war has killed thousands of people, driven up food prices worldwide and caused energy costs to soar

Gasoline prices, which helped fuel inflation for months, have been generally falling. But, the average price for a gallon of gas went up for the first time in more than three months, rising to to $3.681 from $3.674, according to motor club AAA.

Cruise line operators slipped as Hurricane Fiona continued to batter the Caribbean. Carnival slid 6.8%.

Australia Stock Exchange holiday is National Mourning Day and will be observed on Thursday, September 22, 2022

 

[bigdog]

Asian stocks slide for 3rd day on economic growth fears

Asian stocks fell for a third day Friday after unusually large interest rate hikes by the Federal Reserve and other central banks to control inflation spurred fears of a possible global recession.

apnews.com

Wall Street ends lower as global central banks raise rates​

By DAMIAN J. TROISE and ALEX VEIGA

Stocks fell again Thursday, deepening Wall Street’s losses for the week, as central banks around the world hiked interest rates to fight inflation.

The S&P 500 fell 0.8%, its third straight drop. The benchmark index is down about 3% so far this week.

The Dow Jones Industrial Average fell 0.4% and the Nasdaq composite lost 1.4%. The Russell 2000 index of smaller company stocks fell 2.3%, a sign investors are worried about the economy. The major indexes are on pace for their fifth weekly loss in six weeks.

Bond yields mostly rose. The yield on the 2-year Treasury, which tends to follow expectations for Federal Reserve action, rose significantly to 4.11% from 4.02% late Wednesday. It is trading at its highest level since 2007. The yield on the 10-year Treasury, which influences mortgage rates, jumped to 3.70% from 3.51% from late Wednesday.

The latest wave of selling reflects concerns among investors that the Fed might have to get more aggressive than it has been signaling to ultimately get inflation under control, said Barry Bannister, chief equity strategist at Stifel. That scenario is unlikely if prices stabilize and fall, but it could take more than a year for that process to play out, he said

“The question is, what’s the patience level for both the Fed and the market,” he said.

Central banks in Europe and Asia raised interest rates a day after the Federal Reserve made another big rate hike and indicated that more were on the way.

Britain’s central bank raised its key interest rate by another half-percentage point. Switzerland’s central bank raised its benchmark lending rate by its biggest margin to date, 0.75 percentage points, and said it couldn’t rule out more hikes. Central banks in Norway and the Philippines also raised interest rates.

The Fed and other central banks are raising interest rates in to make borrowing more expensive. The goal is to slow economic growth enough to tame inflation, but not so much that economies slip into a recession. Wall Street is worried that the Fed may be pumping the brakes too hard on an already slowing economy, which makes steering into a recession more likely.

On Wednesday, Fed chair Jerome Powell stressed his resolve to lift rates high enough to drive inflation back toward the central bank’s 2% goal. Powell said the Fed has just started to get to that level with this most recent increase. The U.S. central bank lifted its benchmark rate, which affects many consumer and business loans, to a range of 3% to 3.25%. That is the fifth rate hike this year and up from zero at the start of the year

The Fed also released a forecast known as a “dot plot” that showed it expects its benchmark rate to be 4.4% by year’s end, a full point higher than envisioned in June.

“There’s not a lot of easy answers when you have the most powerful entity in the world, the Federal Reserve, committed to this path of hiking rates,” said Michael Antonelli, market strategist at Baird. “It just has people scrambling.”

The S&P 500 fell 31.94 points to 3,757.99 Thursday. The index is now at its lowest level since mid-June and down more than 21% so far this year

The Dow lost 107.10 points to close at 30,076.68, while the Nasdaq finished down 153.39 points at 11,066.81. The Russell slid 39.85 points to 1,722.31.

The losses were broad and concentrated among retailers and technology, financial and industrial stocks. Starbucks fell 4.4%, Nvidia dropped 5.3%, American Express slid 3.8% and UPS fell 3.4%.

Health care stocks were among the few bright spots. Johnson & Johnson rose 1.8%.

Companies are closing in on the end of the third quarter and preparing for the next big round of earnings reports, though some early reports have trickled out. Homebuilder Lennar rose 2% after reporting strong financial results for its fiscal third-quarter. Fellow homebuilder KB Home fell 5.1% after a warning about supply chain problems and a mixed financial report.

The Dow lost 107.10 points to close at 30,076.68, while the Nasdaq finished down 153.39 points at 11,066.81. The Russell slid 39.85 points to 1,722.31.

The S&P 500 fell 0.8%, its third straight drop. The benchmark index is down about 3% so far this week.

The Dow Jones Industrial Average fell 0.4% and the Nasdaq composite lost 1.4%.

 

[bigdog]

Dow sinks to 2022 low as recession fears roil world markets

Markets sold off around the world on mounting signs the global economy is weakening just as central banks raise the pressure even more with additional hikes to interest rates.

apnews.com

Dow sinks to 2022 low as recession fears roil world markets​

By DAMIAN J. TROISE and ALEX VEIGA

Stocks fell sharply worldwide Friday on worries an already slowing global economy could fall into recession as central banks raise the pressure with additional interest rate hikes.

The Dow Jones Industrial Average fell 1.6%, closing at its lowest level since late 2020. The S&P 500 fell 1.7%, close to its 2022 low set in mid-June, while the Nasdaq slid 1.8%.

The selling capped another rough week on Wall Street, leaving the major indexes with their fifth weekly loss in six weeks.

Energy prices closed sharply lower as traders worried about a possible recession. Treasury yields, which affect rates on mortgages and other kinds of loans, held at multiyear highs.

European stocks fell just as sharply or more after preliminary data there suggested business activity had its worst monthly contraction since the start of 2021. Adding to the pressure was a new plan announced in London to cut taxes, which sent U.K. yields soaring because it could ultimately force its central bank to raise rates even more sharply.

The Federal Reserve and other central banks around the world aggressively hiked interest rates this week in hopes of undercutting high inflation, with more big increases promised for the future. Such moves put the brakes on economies by design, in hopes that slower purchases by households and businesses will deflate inflationary pressures. But they also threaten a recession, if they rise too far or too quickly.

Besides Friday’s discouraging data on European business activity, a separate report suggested U.S. activity is also still shrinking, though not quite as badly as in earlier months.

“Financial markets are now fully absorbing the Fed’s harsh message that there will be no retreat from the inflation fight,” Douglas Porter, chief economist at BMO Capital Markets, wrote in a research report.

U.S. crude oil prices slid 5.7% to their lowest levels since early this year on worries that a weaker global economy will burn less fuel. Cryptocurrency prices also fell sharply because higher interest rates tend to hit hardest the investments that look the priciest or the most risky.

Even gold fell in the worldwide rout, as bonds paying higher yields make investments that pay no interest look less attractive. Meanwhile the U.S. dollar has been moving sharply higher against other currencies. That can hurt profits for U.S. companies with lots of overseas business, as well as put a financial squeeze on much of the developing world.

The S&P 500 fell 64.76 points to 3,693.23, its fourth straight drop. The Dow, which at one point was down more than 800 points, lost 486.27 points to close at 29,590.41. The Nasdaq fell 198.88 points to 10,867.93.

Smaller company stocks did even worse. The Russell 2000 fell 42.72 points, or 2.5%, to close at 1,679.59.

More than 85% of stocks in the S&P 500 closed in the red, with technology companies, retailers and banks among the biggest weights on the benchmark index.

The Federal Reserve on Wednesday lifted its benchmark rate, which affects many consumer and business loans, to a range of 3% to 3.25%. It was at virtually zero at the start of the year. The Fed also released a forecast suggesting its benchmark rate could be 4.4% by the year’s end, a full point higher than envisioned in June

Treasury yields have climbed to multiyear highs as interest rates rise. The yield on the 2-year Treasury, which tends to follow expectations for Federal Reserve action, rose to 4.20% from 4.12% late Thursday. It is trading at its highest level since 2007. The yield on the 10-year Treasury, which influences mortgage rates, slipped to 3.69% from 3.71%.

Goldman Sachs strategists say a majority of their clients now see a “hard landing” that pulls the economy sharply lower as inevitable. The question for them is just on the timing, magnitude and length of a potential recession.

Higher interest rates hurt all kinds of investments, but stocks could stay steady as long as corporate profits grow strongly. The problem is that many analysts are beginning to cut their forecasts for upcoming earnings because of higher rates and worries about a possible recession

“Increasingly, market psychology has transitioned from concerns over inflation to worries that, at a minimum, corporate profits will decline as economic growth slows demand,” said Quincy Krosby, chief global strategist for LPL Financial.

In the U.S., the jobs market has remained remarkably solid, and many analysts think the economy grew in the summer quarter after shrinking in the first six months of the year. But the encouraging signs also suggest the Fed may have to jack rates even higher to get the cooling needed to bring down inflation.

Some key areas of the economy are already weakening. Mortgage rates have reached 14-year highs, causing sales of existing homes to drop 20% in the past year. But other areas that do best when rates are low are also hurting.

In Europe, meanwhile, the already fragile economy is dealing with the effects of war on its eastern front following Russia’s invasion of Ukraine. The European Central Bank is hiking its key interest rate to combat inflation even as the region’s economy is already expected to plunge into a recession. And in Asia, China’s economy is contending with still-strict measures meant to limit COVID infections that also hurt businesses

While Friday’s economic reports were discouraging, few on Wall Street saw them as enough to convince the Fed and other central banks to soften their stance on raising rates. So they just reinforced the fear that rates will keep rising in the face of already slowing economies.

 

[bigdog]

On Friday, the S&P 500 fell 64.76 points to 3,693.23, its fourth straight drop. The Dow, which at one point was down more than 800 points, lost 486.27 points to close at 29,590.41. The Nasdaq fell 198.88 points to 10,867.93.

 

[Skate]

S&P hits new closing low, stocks tumble again
U.S. stocks had yet another losing session Monday, as the S&P 500 hit a new 2022 closing low & the Dow Jones Industrial Average's decline put the index officially into a bear market. Meanwhile, the CBOE Volatility Index (VIX), which measures Wall Street’s expectations for short-term market volatility, rose above 31, its highest level since the 17th of June.

Equities were poised for more turbulence this week
Some Wall Street strategists are expecting that a recession is the Federal Reserve’s base case scenario as it proceeds with an aggressive rate hiking campaign in an effort to restore price stability. as fears of excessive Fed tightening rattle investors.

US stocks slip deeper into a slump as recession fears grow
Stocks fell on Wall Street & put major indexes deeper into a slump as recession fears grow. The S&P 500 fell 1.03% Monday. The Dow Jones Industrial Average fell 1.11% & the Nasdaq also fell 0.60%. The losses were broad & included banks, health care companies & retailers. Bank of America fell 2.2%, Medtronic dropped 1.6% & Marathon Oil slid 3%.

Smaller company stocks also lost ground
The Russell 2000 was down 0.8%. The muted opening to the week comes amid an extended slump for major indexes. The benchmark S&P 500 is down more than 7% in September. Stocks have been weighed down by concerns about stubbornly hot inflation & the risk that central banks could push economies into a recession as they try to cool high prices on everything from food to clothing. Investors have been particularly focusing on the Federal Reserve & its aggressive interest rate hikes. “We’re starting to have a handoff from fears about inflation & the Fed to global economic worries,” said Mark Hackett, chief of investment research at Nationwide. “We’ve reached a universal degree of pessimism.”

The Fed has raised its benchmark rate
Doing this affects many consumer & business loans, again last week & it now sits at a range of 3% to 3.25%. It was at virtually zero at the start of the year. The Fed also released a forecast suggesting its benchmark rate could be 4.4% by the year’s end, a full point higher than envisioned in June. The goal is to make borrowing more expensive & effectively crimp spending, which would cool inflation. But, the U.S. economy is already slowing & Wall Street is worried that the Fed’s rate hikes will pump the brakes too hard on the economy & cause a recession.

Higher interest rates hurt all kinds of investments
Especially pricey technology stocks, & the market has been in a broad slump as rates rise. Treasury yields have climbed to multiyear highs as interest rates rise. The yield on the 2-year Treasury, which tends to follow expectations for Federal Reserve action, rose significantly to 4.31% from 4.21% late Friday. It is trading at its highest level since 2007. The yield on the 10-year Treasury, which influences mortgage rates, jumped to 3.88% from 3.69%.

The recent rise in the U.S. dollar against other currencies is a concern for many countries
It dents profits for U.S. companies with overseas business, & puts a financial squeeze on much of the developing world. Companies are nearing the close of the third quarter & investors are preparing for the next round of earnings reports. That will give them a better sense of how companies are dealing with persistent inflation. Investors also have several economic reports on tap for this week that will give more details on consumer spending, the jobs market, & the broader health of the U.S. economy.

The latest consumer confidence report, for September
The business group, The Conference Board will be released on Tuesday. The government will release its weekly report on unemployment benefits on Thursday, along with an updated report on second-quarter gross domestic product. On Friday, the government will release another report on personal income & spending that will help provide more details on where & how inflation is hurting consumer spending.

The British pound slumps
The British pound slumped to an all-time low against the dollar & investors continued to dump British government bonds in displeasure over a sweeping tax cut plan announced in London last week. Treasury yields continued to rise as the Federal Reserve & other global central banks step up their fight against inflation.

The ASX has extended its losses yesterday
The Australian All Ordinaries tumbled (1.79%) with the ASX 200 falling (1.6%) for the same period. The recent fall is a “continued reaction” to the fiscal slump in the US with an immerging fear of a recession in the UK. The global outlook is deteriorating causing a knock-on effect on our market. Treasurer Jim Chalmers warns we are not immune from the “deteriorating” but remains optimistic about the near future expecting our economy to keep growing.

ASX to edge higher Time stamp (6:15 am)
Australian shares are poised to edge higher today. The ASX futures were up 17 points or 0.26% to 6483 points at 6.15 am AEST.

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The Dow Jones at the close
The index had a quick sell-off at the close as stocks trended lower. The Dow Jones Industrial Average fell 329.60 points, or 1.1%, to 29,260.81.

The S&P 500 at the close
The S&P 500 fell 38.19 points, or 1%, to 3,655.04. Stocks trend lower during the day & quickly sold off at the close. Strangely, consumer discretionary held onto gains.

The Nasdaq at the close
The Nasdaq fell 65 points, or 0.6%, to 10,802.92. The technology-heavy Nasdaq Composite sank 0.6%, erasing a gain of more than 1% earlier in the trading day. Nearing the close heavily selling was also the order of the day.

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Yields are higher, the dollar is stronger & stocks are weak
The Dow Jones Industrial Average became the last of the major U.S. stock indexes to fall into what’s known as a bear market Monday as the market deepened its slump amid growing fears of a global recession. The index has extended its losing streak to the fifth day coming off its fifth weekly loss in six weeks.

Unrest with the British government
The British pound dropped to an all-time low against the US dollar & investors continued to dump British government bonds in displeasure over a sweeping tax cut plan announced in London last week.

Markets in Europe closed mostly lower
The head of the European Central Bank warned that the economic outlook “is darkening” as high energy & food prices pushed up by the war in Ukraine sap consumer spending power. France, the EU’s second-biggest economy, forecasts a substantial slowdown in economic growth next year.

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