NYSE Dow Jones finished today at:

[bigdog]

Stocks fall broadly on Wall Street as inflation worries grow

Stocks ended broadly lower on Wall Street, leaving most major indexes in the red for the week, as more concerns emerged about inflation.

apnews.com

Stocks fall broadly on Wall Street as inflation worries grow​

By DAMIAN J. TROISE and ALEX VEIGA

More worries about inflation helped spur a broad slide for stocks Friday that left most of the major indexes on Wall Street in the red for the week and wiped out much of the market’s gains from a strong rally a day earlier.

A report showing U.S. consumers raised their expectations for future inflation hurt markets worldwide, offering another signal the Federal Reserve may have to continue aggressively hiking interest rates to temper stubbornly hot inflation. The strategy raises the risk of a recession.

The S&P 500 fell 2.4% after having been up as much as 1.2% in the early going. The Dow Jones Industrial Average fell 1.3% and the Nasdaq composite ended 3.1% lower. Both indexes also turned lower after marching higher in early trading.

Trading has been unsettled all week and was especially volatile on Thursday after a government report showed that inflation remains very hot. Major U.S. indexes staged their biggest comeback in years on Thursday in a reversal from steep morning losses

“I don’t think that (the rally) technically or fundamentally means anything because a whole lot hasn’t changed,” said Sylvia Jablonski, chief investment officer at Defiance ETFs. “I don’t think we’re likely to see any sense of direction or stability in the near term.”

Investors have been looking for any sign that could allow the Fed to eventually ease up on its interest rate increases. Fed Chair Jerome Powell has said Americans’ expectations for future inflation plays a big role in setting interest rates, because a runaway there could create a much more dangerous, self-fulfilling spiral.

The central bank has already raised its benchmark interest rate five times this year, with the last three increases by three-quarters of a percentage point. Wall Street expects another raise of three-quarters of a percentage point at its next meeting in November.

Inflation, though cooling in some areas of the economy, remains stubbornly hot overall. A survey from the University of Michigan on Friday showed that consumers raised their expectations for future inflation. It also showed that overall consumer confidence remains surprisingly strong despite high prices on a wide range of goods.

“Core inflation is running at levels that are too high, and the University of Michigan’s numbers today show that it is starting to feed into consumers’ expectations, and that’s almost exactly to a ‘T’ what the Fed would like to avoid,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

The S&P 500 fell 86.84 points to 3,583.07. The Dow dropped 403.89 points to 29,634.83. The Nasdaq slid 327.76 points to close at 10,321.39.

Small company stocks also fell sharply. The Russell 2000 gave up 46.01 points, or 2.7%, to close at 1,682.40.

Bond yields rose after the Michigan report. The yield on the 10-year Treasury, which influences mortgage rates, rose to 4.02% from 3.86% shortly before the report came out. It’s trading near its highest level since 2008.

The yield on the 2-year Treasury, which tends to track expectations for future Fed action, rose to 4.51% from 4.40% just before the report came out

Investors also focused on the latest earnings reports for more clues about how companies are dealing with inflation.

Several big banks were bright spots in the market. JPMorgan Chase rose 1.7% after reporting earnings and revenue that topped Wall Street forecasts. Wells Fargo rose 1.9% after it reported strong revenue.

UnitedHealth Group rose 0.6% after raising its profit forecast for the year.

More than 90% of the stocks in the S&P 500 closed in the red. Technology stocks were biggest weights on the index. Chipmaker Nvidia fell 6.1%.

U.S. crude oil prices fell 3.9% and weighed down energy stocks. Chevron fell 3.1%.

Markets in Europe closed higher after British Prime Minister Liz Truss has abandoned a planned cut to corporation taxes, scrapping a key part of an economic plan that set off weeks of market and political turmoil.

A government report showed that the pace of sales at U.S. retailers was unchanged in September from August as rising prices for rent and food chipped away at money available for other things. The report was worse than economists anticipated

 

[bigdog]

The S&P 500 fell 2.4% after having been up as much as 1.2% in the early going. The Dow Jones Industrial Average fell 1.3% and the Nasdaq composite ended 3.1% lower. Both indexes also turned lower after marching higher in early trading.

The S&P 500 fell 86.84 points to 3,583.07. The Dow dropped 403.89 points to 29,634.83. The Nasdaq slid 327.76 points to close at 10,321.39.

 

[bigdog]

Asian shares mostly gain after rally on Wall Street

Stocks are mostly higher in Asia after Wall Street rallied in its latest about-face about-face in recent topsy-turvy trading.

apnews.com

Stocks rally on Wall Street in latest volatile move​

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street kicked off a busy week of corporate earnings with a broad rally Monday, the latest about-face for a market that has been unsteadily lurching between gains and losses in recent weeks.

The S&P 500 climbed 2.6%, more than recovering the ground it lost in a sell-off Friday. The Dow Jones Industrial Average rose 1.9% and the Nasdaq composite added 3.4%.

Nearly all of the stocks in the benchmark S&P 500 index rose, with technology and communications companies among the biggest gainers. Apple climbed 2.9% and Google’s parent company rose 3.7%.

Bond yields eased back from their multiyear highs and took some pressure off of stocks. The yield on the 10-year Treasury, which influences mortgage rates, held steady at 4.02%. The yield on the 2-year Treasury, which tends to track expectations for future Federal Reserve action, fell to 4.46% from 4.50% late Friday.

U.K. government bonds rallied following news that the country’s new Treasury chief was abandoning nearly all of a series of unfunded tax cuts that had upset markets. Markets in Europe closed broadly higher and most markets in Asia gained ground. The price of U.S. crude oil edged lower

The broader market is coming off an extremely volatile week that closed with most major indexes in the red. Including Monday, the S&P 500 has posted gains or losses of 2% or more six times so far this month

“These are the kinds of things that you do see in a bear market,” said Tom Martin, senior portfolio manager with Globalt Investments. “Clearly, the markets are not well balanced because you’re getting this much volatility in stocks and bonds.”

The S&P 500 rose 94.88 points to 3,677.95. The Dow gained 550.99 points to 30,185.82, while the Nasdaq added 354.41 points to 10,675.80.

Traders also bid up small company stocks. The Russell 2000 index rose 53.35 points, or 3.2%, to 1,735.75.

The indexes remain sharply lower from where they were at the beginning of this year. The S&P 500 and Russell are down more than 22%, while the Nasdaq has slumped more than 31%. The Dow is off nearly 17%.

Investors are worried about hot Inflation and the potential for a recession to hit the U.S. and global economy. The big concern is the Fed’s aggressive policy to raise interest rates to cool inflation, which could go too far and slow the economy so much that it slips into a recession

Wall Street turns its focus this week to the latest round of corporate financial results. The earnings reports and financial updates could help give investors a clearer picture of how companies and consumers have been dealing with inflation. Investors will also be listening closely to any statements from corporate leaders focusing on inflation’s potential path ahead and the forecasted impact on business.

On Monday, Bank of America CEO Brian Moynihan told analysts during a conference call following the release of the company’s latest quarterly results that high inflation and worries of a recession haven’t slowed spending on the part of the lender’s customers. Moynihan noted that spending increased on an annual basis by 12% through the first nine months of the year. He added that the number of transactions were up from a year ago

Several major airlines, which could see some turbulence in their finances if inflation hits consumers’ travel spending, will report earnings this week. United Airlines releases its results on Tuesday, followed by American Airlines on Thursday.

Other big names reporting earnings this week include Johnson & Johnson, Netflix, Union Pacific and American Express.

Several companies gained ground Monday on a mix of specific corporate news. Oil producer Continental Resources jumped 8.7% after saying it will be taken private as part of a deal with founder Harold G. Hamm.

Investment bank Credit Suisse rose 3.6% after agreeing to pay $495 million as part of a settlement in a dispute with the U.S. over mortgage-backed securities.

The S&P 500 climbed 2.6%, more than recovering the ground it lost in a sell-off Friday. The Dow Jones Industrial Average rose 1.9% and the Nasdaq composite added 3.4%

The S&P 500 rose 94.88 points to 3,677.95. The Dow gained 550.99 points to 30,185.82, while the Nasdaq added 354.41 points to 10,675.80.

 

[bigdog]

Asia stocks mixed after Wall St rises on corporate profits

Asian stock markets are mixed after Wall Street rose on strong corporate profit reports. Tokyo advanced while Shanghai and Hong Kong declined.

apnews.com

Stocks climb on Wall Street as investors focus on earnings​

By DAMIAN J. TROISE and ALEX VEIGA

Stocks closed broadly higher again on Wall Street Tuesday, adding to weekly gains for major indexes that have been mired in a broad slump amid inflation and recession concerns.

The S&P 500 rose 1.1%, with roughly 90% of the stocks in the benchmark index notching gains. The Dow Jones Industrial Average rose 1.1% and the Nasdaq composite ended 0.9% higher.

Trading was choppy, at one point pulling the Nasdaq into the red as technology stocks lost ground then rallied by the end of the day. It was the latest knee-jerk motion in a market that has been moving erratically in recent weeks. Major indexes are still stuck in a bear market, which is when they’ve fallen at least 20% from their most recent all-time highs.

“High volatility is normal around the bottom of a bear market,” said Jeff Buchbinder, chief equity strategist for LPL Financial. “One reason we may be seeing markets hang in there a little bit better is that the narrative has switched to earnings from inflation and the Federal Reserve.”

The S&P 500 rose 42.03 points to 3,719.98. The Dow added 337.98 points to close at 30,523.80, and the Nasdaq gained 96.60 points to 10,772.40.

Small company stocks also rose. The Russell 2000 index added 20.20 points, or 1.2%, to 1,755.96

Bond yields were mixed. The yield on the 10-year Treasury, which influences mortgage rates, slipped to 3.99% from 4.01% late Monday. The yield on the 2-year Treasury, which tends to track expectations for future Federal Reserve action, also fell to 4.43% from 4.45%.

Investors are primarily focusing on the latest round of corporate earnings this week, given there’s little economic data expected. Investment bank Goldman Sachs rose 2.3% after delivering results that beat estimates, which helped lift shares in other lenders. Banks have been rallying since Friday, when several reported strong quarterly results.

Lockheed Martin jumped 8.7% after reporting strong third-quarter earnings. That gave other defense stocks a boost. General Dynamics rose 3.8%, Northrop Grumman gained 6.7% and Raytheon Technologies added 3.4%.

Streaming sports service FuboTV rose 1.7% after giving investors an encouraging third-quarter update.

Health care giant Johnson & Johnson slipped 0.3% after reporting solid financial result s, but a narrowed forecast as it deals with a strong U.S. dollar cutting into sales outside the U.S.

Netflix surged 14.5% in after-hours trading after its latest quarterly results topped Wall Street’s forecasts. The streaming giant also reported an increase of 2.4 million subscribers during the July-September quarter. The stock fell 1.7% during regular trading before the company released its earnings. Its shares have lost more than half their value so far this year.

American Airlines, Union Pacific and American Express will report their results later this week.

Corporate earnings are the latest pieces of information Wall Street can use to try and get a better sense of the economy’s path ahead amid stubbornly hot inflation and growing recession fears. The Federal Reserve has been raising interest rates in an effort to make borrowing more difficult and slow economic growth. The goal is to hit the brakes on the economy just enough to tame inflation, but the strategy risks slowing the economy too much and causing a recession

“You have to stomach some volatility in the near term, but inflation is coming down,” Buchbinder said. “Work by the Fed and the markets has really improved the inflation outlook from here, if you can look three to six months out.”

Inflation has been cooling in some areas of the economy, but remains stubbornly hot. That has prompted the Fed to remain on track with its plan to continue increasing rates. The central bank has already raised its benchmark interest rate five times this year, with the last three increases by three-quarters of a percentage point. Wall Street expects another raise of three-quarters of a percentage point at its next meeting in November.

The S&P 500 rose 1.1%, with roughly 90% of the stocks in the benchmark index notching gains. The Dow Jones Industrial Average rose 1.1% and the Nasdaq composite ended 0.9% higher.

The S&P 500 rose 42.03 points to 3,719.98. The Dow added 337.98 points to close at 30,523.80, and the Nasdaq gained 96.60 points to 10,772.40.

 

[bigdog]

Asian shares fall after weak earnings pull Wall St lower

Asian shares are mostly lower after Wall Street benchmarks fell, reversing course after two days of gains.

apnews.com

Stocks lose ground as more earnings roll in; yields rise​

By DAMIAN J. TROISE and ALEX VEIGA

A broad slide on Wall Street reversed two days of gains for stocks Wednesday, as Treasury yields climbed to multiyear highs, tempting traders with higher returns on relatively low-risk investments.

The pullback came as investors reviewed a mix of quarterly reports from several companies. Netflix and United Airlines rose sharply after releasing their quarterly results, while others, including Abbott Laboratories and M&T Bank, sank.

Major indexes rose in the early going, but their gains faded fast. The S&P 500 fell 0.7%, the Dow Jones Industrial Average slipped 0.3% and the Nasdaq composite ended 0.9% lower. Small companies fell more than the rest of the market, sending the Russell 2000 index 1.7% lower.

Stocks were coming off of two days of gains, but trading has been unsteady throughout.

“Today was interesting in that it was almost a back-to-reality check for the market,” said Quincy Krosby, chief equity strategist for LPL Financial. “Not only were the yields higher, you also had the dollar much stronger today, and that’s a recipe for difficulties for the market.”

The yield on the 10-year Treasury, which influences mortgage rates, climbed to 4.13%, its highest level since June 2008. It was at 4.02% late Tuesday. The yield on the two-year Treasury, which tends to track expectations for future Federal Reserve action, rose to 4.54% from 4.43%

A sharp move in the three-month Treasury may have helped put traders in a selling mood. The yield briefly hit 4.01% before inching back to 3.98%. Should the three-month Treasury yield rise above that of the 10-year Treasury, what’s known as an inversion, that would be a strong warning that the economy could be headed for a recession.

“It takes a while for the three-month (Treasury) to invert, but it’s getting ever so closer to the 10-year,” Krosby said.

The S&P 500 fell 24.82 points to 3,695.16. The Dow lost 99.99 points to close at 30,423.81. The Nasdaq dropped 91.89 points to 10,680.51. The Russell 2000 gave up 30.20 points to 1,725.76.

Homebuilders and other housing industry-related companies fell Wednesday following a report showing that construction on new homes declined more than expected in September. Homebuilder Lennar fell 6% and home-improvement retailer Lowe’s slid 4.8%.

U.S. crude oil prices rose 3.3%, giving a boost to energy stocks. Exxon Mobil rose 3%. The White House plans to announce another release of oil from the U.S. strategic reserve.

Investors have been focusing on the latest round of corporate earnings this week. The latest results are being closely watched for clues about how companies are dealing with the hottest inflation in four decades and how they intend to operate through the rest of the year and into 2023.

Netflix soared 13.1% after the company said it picked up 2.4 million subscribers during the July-September period, a comeback from a loss of 1.2 million customers during the first half of the year.

United Airlines rose 5% after reporting strong third-quarter financial results. American Airlines will report its results on Thursday.

Household goods giant Procter & Gamble rose 0.9% after also reporting strong financial results. It joined a growing list of companies, including Hasbro and Johnson & Johnson, warning investors about a strong U.S. dollar cutting into revenue. A strong dollar decreases the value of overseas sales after converting the currency. The U.S. currency is now worth more than a euro for the first time in 20 years.

The dollar has gained strength versus currencies worldwide as inflation and recession concerns prompt investors to look for relatively stable investments. Central governments and banks worldwide are dealing with stubbornly hot inflation. British food prices rose at the fastest pace since 1980 last month, driving inflation back to a 40-year high.

The U.S. faces its own potential recession as high prices on everything from food to clothing barely budge and the Fed raises interest rates to temper inflation.

The Fed’s rate increases are meant to make borrowing more difficult and slow economic growth in an effort to tame inflation. The strategy risks stalling the already slowing U.S. economy and bringing on a recession.

“That’s the game of chicken that’s going on,” said Steve Chiavarone, senior portfolio manager at Federated Hermes. “The Fed can only restore price stability by hurting demand, i.e. causing a recession.”

Major indexes rose in the early going, but their gains faded fast. The S&P 500 fell 0.7%, the Dow Jones Industrial Average slipped 0.3% and the Nasdaq composite ended 0.9% lower. Small companies fell more than the rest of the market, sending the Russell 2000 index 1.7% lower.

The S&P 500 fell 24.82 points to 3,695.16. The Dow lost 99.99 points to close at 30,423.81. The Nasdaq dropped 91.89 points to 10,680.51. The Russell 2000 gave up 30.20 points to 1,725.76.

 

[bigdog]

Asian shares mixed as investors keep eyes on inflation

Asian shares are mostly lower in muted trading as investors keep an eye on inflation. Benchmarks fell in Tokyo, Seoul, Sydney and Hong Kong but rose Friday in Shanghai and Mumbai.

apnews.com

Stocks give up an early gain and close lower on Wall Street​

By DAMIAN J. TROISE and ALEX VEIGA

Stocks on Wall Street lost ground again Thursday, though the major indexes remained on pace for a weekly gain after a strong two-day rally earlier this week.

The S&P 500 fell 0.8%. Nearly three-fourths of the stocks in the benchmark index closed in the red, with retailers, banks and industrial companies among the biggest weights. The Dow Jones Industrial Average slipped 0.3% and the Nasdaq composite fell 0.6%. Small company stocks fell more than the broader market, pulling the Russell 2000 index 1.2% lower.

Treasury yields continued rising to multiyear highs, a trend that’s helped push up rates on mortgages and other loans. The yield on the 10-year Treasury climbed to 4.23% from 4.14% late Wednesday and is at its highest level in 14 years. The yield on the two-year Treasury, which tends to track expectations for future Federal Reserve action, rose to 4.61% from 4.56%.

Corporate earnings remained a big focus for Wall Street all week as investors try to get a better picture of how companies are faring amid the hottest inflation in four decades and how they see the economy moving forward

The results have been mixed so far. Several big companies released encouraging financial results, while others have disappointed investors with weak or worrisome warnings

“Earnings growth estimates for the current quarter are coming in 3.6% higher than they were a year ago,” said Bill Northey, senior investment director at U.S. Bank Wealth Management. “Just a matter of months ago, the expectations were for 10% earnings growth in the third quarter. So there has been a material downgrade to the level of expected earnings growth this year.”

IBM rose 4.7% after its third-quarter earnings and revenue topped analysts’ forecasts. AT&T jumped 7.7% after also reporting strong results.

Tesla fell 6.6% after saying it will miss its target for vehicle deliveries this year. Union Pacific dropped 6.8% after the railroad operator predicted slower growth, suggesting that the economy may be slowing down. Rival CSX fell 3%. American Airlines fell 3.8% after reporting its latest results.

Allstate slumped 12.9% after giving investors a disappointing financial update.

All told, the S&P 500 fell 29.38 points to 3,665.78. The Dow lost 90.22 points to close at 30,333.59. The Nasdaq dropped 65.66 points to 10,614.84. The Russell 2000 fell 21.36 points, to 1,704.39.

Markets in Europe closed higher. British Prime Minister Liz Truss resigned following financial market turmoil caused by multiple policy U-turns.

Investors remain concerned about inflation and the potential for recessions throughout world. Wall Street is particularly worried about the Fed’s ongoing plan to raise interest rates in order to slow economic growth and tame high prices. The U.S. economy is already showing signs of a slowdown and the Fed’s plan risks stalling the economy and causing a recession.

The employment market has remained a strong area of the economy, along with consumer spending. The latest government data showed that the number of Americans applying for unemployment benefits fell last week and remains historically low

The healthy jobs market has been a tricky sticking point for the broader economy. While positive, it also signals that the Fed will have to remain aggressive in raising interest rates. Fed officials have warned that the unemployment rate will likely have to rise as part of their fight against rising prices.

The central bank has raised its key interest rate to a range of 3% to 3.25%. A little more than six months ago, that rate was near zero. The rate increases have been putting pressure on other areas of the economy, including the housing market.

The sharp rate increases have pushed mortgage rates up to 15-year highs. Mortgage buyer Freddie Mac reported Thursday that the average on the key 30-year rate ticked up this week to 6.94% from 6.92% last week. Last year at this time, the rate was 3.09%.

Higher mortgage rates are helping stall a housing sector that has been hot for years. The National Association of Realtors said Thursday that sales of previously occupied U.S. homes fell in September for the eighth month in a row.

Homebuilders fell broadly following the latest housing and mortgage rates reports. PulteGroup fell 1.5%

The S&P 500 fell 0.8%. Nearly three-fourths of the stocks in the benchmark index closed in the red, with retailers, banks and industrial companies among the biggest weights. The Dow Jones Industrial Average slipped 0.3% and the Nasdaq composite fell 0.6%. Small company stocks fell more than the broader market, pulling the Russell 2000 index 1.2% lower.

All told, the S&P 500 fell 29.38 points to 3,665.78. The Dow lost 90.22 points to close at 30,333.59. The Nasdaq dropped 65.66 points to 10,614.84. The Russell 2000 fell 21.36 points, to 1,704.39.

 

[bigdog]

Stocks end higher on Wall Street, notching weekly gains

Stocks closed higher on Wall Street, notching sizable weekly gains for major indexes. The benchmark S&P 500 rose 2.4% Friday, while the Dow Jones Industrial Average and the Nasdaq also gained ground.

apnews.com

Stocks end higher on Wall Street, notching weekly gains​

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street capped a volatile run for stocks with a broad rally Friday, contributing to sizable weekly gains for major indexes.

The S&P 500 rose 2.4% and notched its biggest weekly gain since June. The Dow Jones Industrial Average rose 2.5% and the Nasdaq composite ended 2.3% higher.

More than 90% of the stocks in the benchmark S&P 500 index rose. Technology stocks, retailers and health care companies powered a big share of the rally. Oracle rose 5%, Home Depot added 2.3% and Pfizer rose 4.8%.

Social media companies fell broadly after Snapchat’s parent company issued a weak forecast and the Washington Post reported that Elon Musk plans to slash about three-quarters of the payroll at Twitter after he buys the company. Snap slumped 28.1% and Twitter shed 4.9%.

Markets have been unsettled in recent days, as stocks lurched from sharp gains early in the week to losses later in the week. The market appeared headed for another sell-off early Friday, then reversed course amid fresh signals from the Federal Reserve that it may consider easing up on its aggressive pace of interest rate hikes as it tries to bring down inflation.

“The hope is that they at least slow down,” Jay Hatfield, CEO of Infrastructure Capital Advisors

The Fed is expected to raise interest rates another three-quarters of a percentage point at its upcoming meeting in November. Markets have been unsettled partly because investors have been hoping that any sign of inflation easing or economic growth slowing could signal that the Fed will ease up on its rate increases, which have yet to show any signs of significantly impacting inflation.

Mary Daly, president of the Federal Reserve Bank of San Francisco, said Friday that she’s thinking about the dangers of raising interest rates too high and doing too much damage to the economy.

While the Fed likely isn’t yet ready to start dialing down the size of its rate hikes, she said, “I think the time is now to start talking about stepping down. The time is now to start planning for stepping down.”

If the Fed does come out of its meeting next month with a fourth straight increase of 0.75 percentage points to its key overnight interest rate, as most investors expect, she said: “I would really recommend people don’t take that away as: It’s 75 forever.”

A 0.75 point jump is triple the size of the Fed’s usual move, and the Fed risks creating a recession if it moves too high or too quickly.

Daly’s comments helped push down investors’ expectations for how high the Fed will hike rates through the end of the year. Traders are now pricing in just a 45% chance that the Fed will hike rates by 0.75 percentage points next month and again by the same amount in December.

Just a day ago, they were much more confident about that, pricing in a 75% probability. Instead, traders increasingly see the Fed dialing down to a more modest increase of 0.50 percentage points in December, according to CME Group.

Daly was speaking at meeting of the University of California-Berkeley’s Fisher Center for Real Estate & Urban Economics’ Policy Advisory Board.

Central banks around the world have mostly been raising interest rates to fight inflation and much of the focus has been on the Fed. It has raised its key interest rate to a range of 3% to 3.25%. A little more than six months ago, that rate was near zero.

Even if the Fed does dial down the size of its increases soon, officials at the central bank have also been adamant that they plan to leave rates alone at that high level for a while to continue to slow the economy in hopes of forcing down high inflation.

“The concern is still that bond yields are heading higher and the Fed is not signaling a pivot,” said Ross Mayfield, investment strategist at Baird. “Until there is a meaningful pivot driven by a drop in inflation, it’s a huge headwind to the market.”

Treasury yields, which hit multiyear highs this week on expectations of more Fed rate hikes, eased Friday. The yield on the 10-year Treasury note, which affects mortgage rates, slipped to 4.22% from 4.24% late Thursday. The yield on the two-year Treasury, which tends to track investors’ expectations for Federal Reserve action on interest rates, fell to 4.49% from 4.61%.

Stocks got a boost from the pullback in yields. The S&P 500 rose 86.97 points to 3,752.75. The index posted a 4.7% gain for the week.

The Dow climbed 748.97 points to close at 31,082.56, and the Nasdaq added 244.87 points to 10,859.72.

Small company stocks also gained ground. The Russell 2000 index rose 37.85 points, or 2.2%, to finish at 1,742.24.

Investors have shifted their focus, for now, to the latest round of corporate earnings as they look for more clues about how hot inflation and rising interest rates are shaping the economy. Reports from airlines, banks, railroad operators and others have so far provided mixed financial results and forecasts.

American Express fell 1.7% after setting aside hundreds of millions of dollars to cover potential losses as the economy continues to deteriorate. Railroad CSX rose 1.7% after reporting solid financial results.

 

[bigdog]

The S&P 500 rose 2.4% and notched its biggest weekly gain since June. The Dow Jones Industrial Average rose 2.5% and the Nasdaq composite ended 2.3% higher.

The S&P 500 rose 86.97 points to 3,752.75. The index posted a 4.7% gain for the week. The Dow climbed 748.97 points to close at 31,082.56, and the Nasdaq added 244.87 points to 10,859.72.

 

[noirua]

 

[divs4ever]

have been CAREFULLY nibbling on gold producers

i should probably start betting CAREFULLY against the US dollar ( and the US markets )

 

[bigdog]

Asian shares mostly higher, tracking Wall Street advance

Shares are mostly higher in Asia after stocks shook off an early bout of unsettled trading and ended higher on Wall Street.

apnews.com

US stocks march higher ahead of tech-heavy earnings week​

By DAMIAN J. TROISE and ALEX VEIGA

Stocks shook off a shaky start and closed higher Monday, extending their gains from last week, as investors geared up for a heavy week of earnings from big technology companies.

The S&P 500 rose 1.2%, with technology, health care and financial stocks accounting for a big share of the gains. Only materials and real estate sector stocks fell.

The Dow Jones Industrial Average rose 1.3% and the tech-heavy Nasdaq composite closed 0.9% higher.

Google’s parent company, along with Facebook’s parent, Amazon and Apple are all reporting their latest financial results this week. They are among the priciest stocks in the benchmark S&P 500 and their earnings this week could mean big moves, up or down, for the broader market.

Several big companies outside of the tech sector are also reporting earnings this week, including Coca-Cola, General Motors and Caterpillar.

“In general, the market is sitting back and there are a few data points people are waiting to see,” said Jack Janasiewicz, portfolio manager and lead portfolio strategist at Natixis Investment Managers Solutions

The S&P 500 rose 44.59 points to 3,797.34. The Dow gained 417.06 points to 31,499.62. The Nasdaq rose 92.90 points to 10,952.61.

Small company stocks also rose. The Russell 2000 index added 6.16 points, or 0.4%, to close at 1,748.40.

Bond yields edged higher. The yield on the 10-year Treasury briefly surged to 4.29% before easing to 4.25%. It reached 4.22% late Friday. The yield on the two-year Treasury, which tends to track investors’ expectations for Federal Reserve action on interest rates, rose to 4.50% from 4.48%.

Trading has been volatile this month, but the major indexes are solidly higher entering the last full week of October after a couple of big market rallies last week. The S&P 500 is up 5.9% so far this month, while the Dow is up 9.7%. The Nasdaq is up a more modest 3.6%.

Stocks surged on Friday after after remarks by a Federal Reserve bank president raised hopes among traders that the central bank may consider easing up on its aggressive pace of interest rate hikes as it tries to quell inflation.

Mary Daly, president of the Federal Reserve Bank of San Francisco, said that she’s thinking about the dangers of raising interest rates too high and doing too much damage to the economy. While the Fed likely isn’t yet ready to start dialing down the size of its rate hikes, she said, “I think the time is now to start talking about stepping down. The time is now to start planning for stepping down.”

That optimism likely carried over into Monday’s, helping keep investors in a buying mood, said Sam Stovall, chief investment strategist at CFRA.

“The key is interest rates and the Fed,” he said.

Investors are closely reviewing the latest round of corporate earnings to get a better picture of inflation’s impact on different areas of the economy. Prices on everything from clothing to food remain at their highest levels in four decades. That has put pressure on companies to raise prices and cut costs, while squeezing consumers.

The Federal Reserve and central banks around the world have been raising interest rates in an effort to tame inflation. Interest rate increases have been weighing on pricier stocks, like technology companies, by making less-risky bonds seem more attractive in a volatile stock market.

Higher interest rates have also made borrowing more expensive and have hit the housing market particularly hard. Mortgage buyer Freddie Mac reported on Thursday that the average on the key 30-year rate ticked up to 6.94%. Last year at this time, the rate was 3.09%. The surge in mortgage rates has stalled a housing sector that has been hot for years.

The Fed’s aggressive rate increases have economists and investors worried that the central bank could go too far in slowing the economy and push it into a recession. The U.S. economy is already slowing down and actually contracted during the first half the year. The government will release its third-quarter gross domestic product report on Thursday

The Fed is expected to raise interest rates another three-quarters of a percentage point at its upcoming meeting in November. Markets have been looking for any sign that the central bank is ready to ease up on rate increases.

“The market needs to find that terminal rate,” Janasiewicz said. “Once we get comfortable with that, I think we can start to find some footing.”

Markets in Europe made solid gains. U.K. government bonds rallied as Treasury chief Rishi Sunak became assured of becoming the prime minster, replacing Liz Truss, who quit last week after her tax-cutting economic package caused turmoil in financial markets.

Markets in China tumbled after President Xi Jinping awarded himself another term as leader of the ruling Communist Party. The news roiled U.S. listed shares of some big Chinese companies. Alibaba slumped 12.5% and JD.com fell 13%.

Xi wants a bigger Communist Party role in China’s business and technology development, raising fears about stunted economic growth because of too much centralized control. China’s economy is also still hurting from strict COVID-19 restrictions

The S&P 500 rose 44.59 points to 3,797.34. The Dow gained 417.06 points to 31,499.62. The Nasdaq rose 92.90 points to 10,952.61.

The S&P 500 rose 1.2%, with technology, health care and financial stocks accounting for a big share of the gains. Only materials and real estate sector stocks fell.

The Dow Jones Industrial Average rose 1.3% and the tech-heavy Nasdaq composite closed 0.9% higher.

 

[bigdog]

Asian stocks follow Wall St up on hopes of rate hikes easing

Asian stock markets have followed Wall Street higher as hopes increased that the Federal Reserve might ease off plans for interest rate hikes and Britain installed its third prime minister this year.

apnews.com

Stocks end higher on Wall Street as earnings roll in​

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street notched more gains Tuesday, as major stock indexes rallied for the third day and Treasury yields fell again.

The S&P 500 rose 1.6%, with roughly 90% of stocks in the index notching gains. The benchmark index hadn’t been able to string together more than two gains in a row since mid-September.

The Dow Jones Industrial Average rose 1.1% and the Nasdaq closed 2.3% higher. Smaller company stocks outpaced the broader market, lifting the Russell 2000 index 2.7% higher.

The latest gains came as bond yields fell significantly, reflecting speculation among investors that the Federal Reserve may begin easing up on its aggressive pace of interest rate increases as soon as this year.

The yield on the 10-year Treasury, which impacts mortgage rates, slipped to 4.09% from 4.23% late Monday. The yield on the two-year Treasury, which tracks Federal Reserve action, fell to 4.45% from 4.50% late Monday

“It seems like the market is saying that they think perhaps longer-term yields have peaked, and that’s providing some optimism to the (stock) market,” said Randy Frederick, managing director of trading & derivatives at Charles Schwab.

The S&P 500 rose 61.77 points to 3,859.11. The Dow added 337.12 points to close at 31,836.74. The Nasdaq gained 246.50 points at 11,199.12. The Russell 2000 picked up 47.76 points, closing at 1,796.16

Technology stocks, retailers and communication companies were among the biggest drivers of Tuesday’s rally. Traders were sizing up a heavy round of earnings reports from big U.S. companies.

General Motors rose 3.6% after delivering solid results. United Parcel Service initially rose, but then slipped 0.3% after the package delivery service beat Wall Street’s third-quarter earnings and revenue forecasts. Paint maker Sherwin-Williams jumped 3.6% after also reporting solid financial results.

Packaging maker Crown Holdings fell 16.8% after its latest earnings fell short of estimates. Industrial conglomerate General Electric fell 0.5% after reporting weak third-quarter earnings.

Many other big names are on deck to report earnings throughout the week. Boeing, Ford and Facebook’s parent company will report results on Wednesday. Caterpillar, Apple and Amazon are among the big companies reporting results on Thursday.

Outside of earnings, barbecue grill maker Weber soared 30.4% after it said BDT Capital Partners is interested in buying the rest of the company. Adidas fell 2.4% after the German sportswear company ended its partnership with the rapper formerly known as Kanye West over his offensive and antisemitic remarks.

The latest round of earnings reports are particularly important for investors looking for indications of inflation’s impact on various industries. Prices on everything from clothing to food remain at their highest levels in four decades, putting pressure on companies to raise prices and cut costs, while squeezing consumers.

The Federal Reserve and central banks around the world have been raising interest rates to tame inflation. That has investors concerned about the central bank going too far in trying to slow the economy and instead causing a recession.

 

[Skate]

Stocks end higher on Wall Street as earnings roll in (Update)
Damian J. Troise And Alex Veiga

Stocks closed higher on Wall Street
The higher close marked the third straight gain for the S&P 500. The benchmark hadn’t been able to string together more than two gains in a row since mid-September. The gains Tuesday came as the flow of company earnings reports stepped up. The S&P 500 climbed 1.6%. The Dow Jones Industrial Average added 1.1% and the Nasdaq rose 2.3%. Small-company stocks did even better. General Motors rose after delivering solid results, while packaging maker Crown Holdings fell sharply after its latest earnings fell short of estimates. Treasury yields continued to pull back from their multiyear highs.

This is a breaking news update
Stocks are broadly higher on Wall Street in afternoon trading Tuesday as traders take in a heavy round of earnings reports from big U.S. companies.

90% of the S&P 500 notched gains
The S&P 500 rose 1.7% as of 3:34 p.m. Eastern, with roughly 90% of stocks in the benchmark index notching gains. The Dow Jones Industrial Average rose 355 points, or 1.1%, to 31,859 and the Nasdaq rose 2.3%. Smaller company stocks outpaced the broader market. The Russell 2000 jumped 2.8%.

Bond yields fell significantly
The yield on the 10-year Treasury, which impacts mortgage rates, slipped to 4.10% from 4.23% late Monday. The yield on the two-year Treasury, which tracks Federal Reserve action, fell to 4.45% from 4.50% late Monday. U.S. crude oil prices rose 0.9%

Investors are focused on earnings
On the latest round of earnings reports from some big companies. General Motors rose 4.8% after delivering solid results. United Parcel Service initially rose, but then slipped 0.3% after the package delivery service beat Wall Street’s third-quarter earnings and revenue forecasts. Paint maker Sherwin-Williams jumped 3.6% after also reporting solid financial results.

Earnings Report
Packaging maker Crown Holdings fell 17.3% after its latest earnings fell short of estimates. Industrial conglomerate General Electric fell 0.6% after reporting weak third-quarter earnings. Many other big names are on deck to report earnings throughout the week. Google's parent company reports its results later Tuesday, along with Microsoft and Visa. Boeing, Ford, and Facebook's parent company will report results on Wednesday. Caterpillar, Apple, and Amazon are among the big companies reporting results on Thursday.

Outside of earnings
Barbecue grill maker Weber soared 29.7% after it said BDT Capital Partners is interested in buying the rest of the company. Adidas fell 2.3% after the German sportswear company ended its partnership with the rapper formerly known as Kanye West over his offensive and antisemitic remarks. The latest round of earnings reports are particularly important for investors looking for indications of inflation’s impact on various industries. Prices on everything from clothing to food remain at their highest levels in four decades, putting pressure on companies to raise prices and cut costs, while squeezing consumers.

Interest rates
The Federal Reserve and central banks around the world have been raising interest rates to tame inflation. That has investors concerned about the central bank going too far in trying to slow the economy and instead causing a recession. The Fed is expected to raise interest rates by another three-quarters of a percentage point at its upcoming meeting in November. Markets have been looking for any sign that the central bank is ready to ease up on rate increases. That includes data that the economy is slowing.

Housing market
A measure of home prices released on Tuesday showed that the housing market continues to cool. The S&P CoreLogic Case-Shiller Index, which tracks prices in major cities, fell more than expected in August. The Fed’s aggressive interest rate increases have been making borrowing more expensive, in turn driving mortgage rates higher and crimping the broader housing market.

The U.S. economy
The economy is already slowing down and actually contracted during the first half of the year. The government will release its third-quarter gross domestic product report on Thursday.

ASX Market Update

Skate.

 

[bigdog]

Asian stocks mixed ahead of US GDP update, Europe rates call

Asian stock markets are mixed ahead of an update on the U.S. economy and a European Central Bank meeting that is expected to raise its key interest rate to a 13-year high.

apnews.com

Stocks end mixed on Wall Street amid weak tech earnings​

By DAMIAN J. TROISE and ALEX VEIGA

Weak quarterly results from several big technology companies weighed on stocks Wednesday, leaving major indexes mixed on Wall Street.

The S&P 500 fell 0.7% after shedding an early gain, while the tech-heavy Nasdaq composite dropped 2%. The lower finish ended a three-day winning streak for both indexes.

The Dow Jones Industrial Average ended just barely in the green after having been up 1.1%, thanks in part to a big jump in Visa.

Smaller company stocks far outpaced the broader market, lifting the Russell 2000 index by 0.5%.

“A handful of very large companies are weighing on the indexes,” said Willie Delwiche, investment strategist at All Star Charts. “The more exposed you are to those mega-cap tech stocks the more you’re down today, and the less exposed you are the less you’re down.”

The S&P 500 fell 28.51 points to 3,830.60. The Nasdaq fell 228.12 points to 10,970.99. The Dow rose 2.37 points to close at 31,839.11. It had briefly been up by more than 335 points. The Russell 2000 added 8.18 points at 1,804.33

Google’s parent company, Alphabet, slumped 9.6% after it reported disappointing third-quarter financial results as advertising sales weakened. Weak ad sales are threatening other tech and communications companies. Music streaming service Spotify fell 13% after it reported a bigger third-quarter loss than Wall Street expected

Microsoft slid 7.7% after it reported disappointing growth for its cloud computing company, while profits fell along with PC sales. Chipmaker Texas Instruments fell 2.6% after giving investors a discouraging forecast for the current quarter.

Facebook’s parent company, Meta, fell 10.8% in after-hours trading following the release of its third-quarter earnings, which fell short of analysts’ forecasts, according to FactSet. The stock fell 5.6% in regular trading.

Stocks with huge valuations, such as Microsoft, Meta Platforms and Google parent Alphabet, can have a big effect on market indexes. In the S&P 500, the slide in technolgy and communications stocks outweighed gains elsewhere in the benchmark index, including in health care and energy companies.

Traders bid up shares in companies that delivered improved quarterly results Wednesday.

Visa rose 4.6% after reporting strong financial results and raising its dividend. Norfolk Southern gained 2.9% after reporting a surge in profits on an increase in shipping rates

Outside of earnings, Mobileye Global, Intel’s self-driving unit, rose 38% in its market debut.

Several other big companies are on deck to report earnings this week. Apple and Amazon report results on Thursday, along with industrial bellwether Caterpillar and McDonald’s.

The tech-stock losses also overshadowed another slide in Treasury yields, which helped boost stocks earlier in the week as they pulled back from their multiyear highs.

Bond yields have been declining amid speculation among investors that the Federal Reserve may begin easing up on its aggressive pace of interest rate increases as soon as this year. Gains in those rates have sent mortgage rates sharply higher this year.

The yield on the 10-year Treasury fell to 4.01% from 4.10% late Tuesday. The two-year yield fell to 4.42% from 4.48%.

Investors are mainly focused on earnings this week, but are waiting for several economic updates as they try to get a better picture of how inflation is impacting businesses, consumers and the Fed’s plans for interest rate increases.

The government will release its first estimate on third-quarter gross domestic product on Thursday. The U.S. economy is already slowing down and actually contracted during the first half the year. On Friday the government will also release more data on personal income, consumption and spending.

The latest economic data is being closely watched for any signs of a slowdown as Wall Street tries to determine if and when the Fed might ease up on its interest rate increases. The central bank is expected to raise interest rates another three-quarters of a percentage point at its upcoming meeting in November. But traders have grown more confident that it will dial down to a more modest increase of 0.50 percentage points in December, according to CME Group.

Investors have been concerned that the Fed could go too far with rate increases and cause a recession by slowing the economy too much.

The S&P 500 fell 28.51 points to 3,830.60. The Nasdaq fell 228.12 points to 10,970.99. The Dow rose 2.37 points to close at 31,839.11. It had briefly been up by more than 335 points

The S&P 500 fell 0.7% after shedding an early gain, while the tech-heavy Nasdaq composite dropped 2%. The lower finish ended a three-day winning streak for both indexes.

The Dow Jones Industrial Average ended just barely in the green after having been up 1.1%, thanks in part to a big jump in Visa.

 

[bigdog]

Asian shares mostly lower as Japan preps massive stimulus

Shares are mostly lower in Asia after a mixed session on Wall Street, where tech sector losses offset gains in other parts of the market.

apnews.com

US stock indexes end mixed as Facebook parent company slumps​

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street delivered another mixed finish for stocks Thursday, as disappointing quarterly results from several big tech companies offset gains elsewhere in the market.

The S&P 500 fell 0.6%, with about 44% of stocks within the benchmark index losing ground. The tech-heavy Nasdaq fell 1.6%, while the Dow Jones Industrial Average rose 0.6%.

Facebook’s parent company, Meta Platforms, plummeted 24.6% for the biggest drop in the S&P 500 after reporting a second straight quarter of revenue decline amid falling advertising sales and stiff competition from TikTok. It joined other tech and communications stocks, such as Google’s parent company, Alphabet, and Microsoft, in reporting weak results and worrisome forecasts over advertising demand. Alphabet fell 2.9% and Microsoft slid 2%.

Amazon slid 19% in after-hours trading after the retail giant issued an estimate for sales in the last quarter of the year came in well below analysts’ forecasts. The stock fell 4.1% in regular trading before the release of its latest quarterly results

Construction equipment maker Caterpillar jumped 7.7% after it handily beat analysts’ third-quarter profit forecasts. The big gain helped boost the 30-company Dow.

Another pullback in long-term Treasury yields helped support stocks in companies that weren’t reporting quarterly results. The yield on the 10-year Treasury, which influences mortgage rates, fell to 3.91% from 4.01% late Wednesday. The two-year yield fell to 4.30% from 4.42%

“What you’re seeing is a little bit of relief,” said Megan Horneman, chief investment officer at Verdence Capital Advisors. “Earnings are not great but they’re not awful either.”

The S&P 500 fell 23.30 points to 3,807.30. The Dow rose 194.17 points to 32,033.28. The Nasdaq fell 178.32 points to 10,792.67.

Smaller company stocks held up better than the broader market. The Russell 2000 index added 1.99 points, or 0.1%, to 1,806.32.

Excluding the Nasdaq, the major indexes are on pace for weekly gains. And the S&P 500 remains solidly on track to end October in the green.

Earnings have been the big focus for Wall Street this week, but markets got some encouraging economic news Thursday as the government reported the U.S. economy returned to growth last quarter, expanding 2.6%. That marks a turnaround after the economy contracted during the first half of the year.

The economy has been under pressure from stubbornly hot inflation and the Federal Reserve’s efforts to raise interest rates in order to cool prices. The central bank is trying to slow economic growth through rate increases, but the strategy risks going too far and brining on a recession.

The rising interest rates have made borrowing more difficult, particularly with mortgage rates. Average long-term U.S. mortgage rates topped 7% for the first time in more than two decades this week.

The latest economic data is being closely watched for any signs of a slowdown or that inflation might be easing as Wall Street tries to determine if and when the Fed might pull back on its interest rate increases

The central bank is expected to raise interest rates another three-quarters of a percentage point at its upcoming meeting in November. But traders have grown more confident that it will dial down to a more modest increase of 0.50 percentage points in December, according to CME Group.

Central banks around the world have also been raising interest rates in an effort to tame inflation. The European Central Bank piled on another outsized interest rate hike on Thursday. Markets in Europe were mixed.

Wall Street has more earnings to review Friday, including Exxon Mobil, Chevron and Charter Communications.

Meanwhile, S&P Dow Jones Indices said Thursday that insurer Arch Capital Group will replace Twitter in the S&P 500 index before the opening of trading on Tuesday. The move comes ahead of Elon Musk’s acquisition of Twitter in a transaction expected to close Friday.

ASX 200 Futures

The S&P 500 fell 0.6%, with about 44% of stocks within the benchmark index losing ground. The tech-heavy Nasdaq fell 1.6%, while the Dow Jones Industrial Average rose 0.6%.

The S&P 500 fell 23.30 points to 3,807.30. The Dow rose 194.17 points to 32,033.28. The Nasdaq fell 178.32 points to 10,792.67.

 

[bigdog]

Wall Street rally marks first weekly win streak since summer

Wall Street closed sharply higher, capping another strong week with gains led by Apple and other companies that made even bigger profits during the summer than expected.

apnews.com

Wall Street rally marks first weekly win streak since summer​

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA

Technology stocks led a broad rally on Wall Street Friday, capping another strong week for the market, as investors welcomed solid profits from Apple and other companies.

The S&P 500 rose 2.5% and posted its first back-to-back weekly gains since August. The Dow Jones Industrial Average rose 2.6% and the tech-heavy Nasdaq composite climbed 2.9%. Smaller company stocks also gained ground, lifting the Russell 2000 index by 2.3%.

Apple’s latest quarterly results showed the iPhone maker made even fatter profits during the summer than expected. Its shares rose 7.6% and led a rally in technology stocks that had largely been beat up a day earlier.

Intel jumped 10.7% after delivering much bigger profit than analysts forecasted even though it said it saw “worsening economic conditions.”

Gilead Sciences soared 12.9%, and T-Mobile US gained 7.4% after they also topped Wall Street’s profit expectations.

Investors were also encouraged by a report on consumer spending that came a day after new data showing the economy grew modestly in the third quarter and inflation eased.

“You have an economy that almost refuses to keel over, an economy that at its core is resilient, but a the same time inflation is easing and that is what the Fed wants and that’s obviously what the market wants,” said Quincy Krosby, chief equity strategist for LPL Financial

That’s helped fuel hopes on Wall Street for a “pivot” by the Federal Reserve, where the central bank dials down the big interest-rate hikes that have shaken the market. Such a move could boost the market, though many analysts say such hopes may be overdone.

The central bank has been very clear about its plan to err on the side of going too far in order to tame inflation, which means the big gains on hopes of a pullback seem premature, said Liz Young, chief investment strategist at SoFi.

“This rally has now gotten a bit irrational and fragile at this level,” Young said.

The S&P 500 rose 93.76 points to 3,901.06. The Dow gained 828.52 points to 32,861.80. The Nasdaq rose 309.78 points to 11,102.45. The Russell 2000 gained 40.60 points to 1,846.92.

Many big U.S. companies have been reporting stronger earnings than expected, though the bag remains decidedly mixed.

Solid earnings on Friday helped to offset a 6.8% drop for Amazon, which offered a weaker-than-expected forecast for upcoming revenue. It was the latest Big Tech company to take a beating this week after reporting some discouraging trends. It’s a sharp turnaround after the group dominated Wall Street for years with seemingly unstoppable growth.

Earlier in the week, Meta Platforms lost nearly a quarter of its value after reporting a second straight quarter of revenue decline amid falling advertising sales and stiff competition from TikTok. Microsoft and Google’s parent company also reported slowdowns in key areas.

Such woes have created a sharp split on Wall Street this week, between lagging Big Tech stocks and the rest of the market. The Nasdaq, which is stuffed with high-growth tech stocks, notched a 2.2% gain this week. It would have had an even worse showing if not for Apple’s boost from Friday. The Dow, meanwhile, jumped 5.7% for the week because it has less of an emphasis on tech

Rising interest rates have hit Big Tech stock prices harder than the rest of the market, and the pressure increased Friday as yields climbed.

“The markets still seem to not want to believe that we might end up in a place where an earnings recession is possible,” Young said.

Data released in the morning showed the raises that U.S. workers got in wages and other compensation during the summer was in line with economists’ expectations. That should keep the Fed on track to keep hiking rates sharply in hopes of weakening the job market enough to undercut the nation’s high inflation. Other data showed the Fed’s preferred measure of inflation remains very high, and U.S. households continue to spend more in the face of it.

The Fed is trying to starve inflation of the purchases made by households and businesses needed to keep it high. It’s doing that by intentionally slowing the economy and the jobs market. The worry is that it could go too far and cause a sharp downturn

The Fed has already raised its benchmark overnight interest rate up to a range of 3% to 3.25% up from virtually zero in March. The widespread expectation is for it to push through another increase that’s triple the usual size next week, before it potentially makes a smaller increase in December. Higher rates not only slow the economy, they also hurt prices for stocks and other investments.

The yield on the two-year Treasury, which tends to track expectations for Fed action, rose to 4.42% from 4.28% late Thursday.

The 10-year yield, which helps set rates for mortgages and many other loans, climbed to 4.01% from 3.93%.

Trading in Twitter’s stock has ended, after Elon Musk took control of the company following a lengthy legal battle

 

[bigdog]

ASX 200 futures up 92 points or 1.4% to 6868 on Saturday

The S&P 500 rose 2.5% and posted its first back-to-back weekly gains since August. The Dow Jones Industrial Average rose 2.6% and the tech-heavy Nasdaq composite climbed 2.9%. Smaller company stocks also gained ground, lifting the Russell 2000 index by 2.3%

The S&P 500 rose 93.76 points to 3,901.06. The Dow gained 828.52 points to 32,861.80. The Nasdaq rose 309.78 points to 11,102.45. The Russell 2000 gained 40.60 points to 1,846.92.

 

[bigdog]

Asian shares advance, shrugging off Wall Street retreat

Shares have advanced in Asia despite a retreat on Wall Street. Hong Kong jumped more than 3% and most other indexes saw strong gains.

apnews.com

Stocks slip, but still end up with big gains for October​

By DAMIAN J. TROISE and ALEX VEIGA

Stocks closed broadly lower on Wall Street Monday, a downbeat finish for major indexes in an otherwise banner October for the market, including the best month for the Dow Jones Industrial Average since 1976.

The S&P 500, the benchmark for many index funds, notched an 8% gain for the month, it’s first monthly gain since July. The Nasdaq composite rose 3.9% in October, also marking its first monthly gain in three months. The Dow rose 14% in the month. The Dow tracks just 30 blue chip companies, far fewer than other indexes, and can have bigger swings than broader indicators like the S&P 500.

A market pullback in August and September, combined with better-than-expected quarterly earnings from many companies, helped put investors in a buying mood in October. Cautious optimism that the Federal Reserve might be ready to begin easing up on the aggressive pace of interest rate hikes as it tries to squash inflation, also helped

“It’s probably a combination of the fact that we were so deeply oversold, earnings weren’t as bad as feared, and that kind of sets up a recipe for a bounce,” said Michael Antonelli, market strategist at Baird.

“Whether that bounce holds or not depends on your view of” whether the Fed is likely to shift away from large rate hikes or inflation begins to decline, he added

On Monday, the S&P 500 slipped 29.08 points, or 0.7%, to close at 3,871.98. The index is now down 18.8% so far this year.

The Dow fell 128.85 points, or 0.4%, to 32,732.95, while the Nasdaq dropped 114.31 points, or 1%, to 10,988.15. The Russell 2000 index of smaller company stocks was little changed at 1,846.86.

Technology and communications stocks were the biggest drags on the broader market. Apple fell 1.5% and Google’s parent fell 1.8%.

Stocks gained ground throughout October as investors shifted their focus to the latest round of corporate earnings. More than half of the companies within the S&P 500 have reported results and shown overall earnings growth of 2.3%, according to FactSet.

Companies have so far given investors a mixed bag of results and forecasts as Wall Street tries to get a better picture of the economy. Inflation remains stubbornly hot and the Federal Reserve has been raising interest rates aggressively to try and slow down the economy and tame high prices. The strategy risks hitting the brakes too hard on economic growth and sending the economy into a recession

Investors this week will be watching for another extra-large interest rate increase from the Fed. The widespread expectation is for it to push through another increase that’s triple the usual size. Wall Street is roughly split on whether it will do the same in December or shift to a smaller increase, according to CME Group.

“Markets are itching to see a peak in this year’s aggressive hiking cycles but it would be a mistake to expect central banks will call an early end to their fight against inflation,” analysts at J.P.Morgan wrote in a research note.

Any signals from the Fed on Wednesday that it is prepared to pump the brakes on its rate hiking policy will likely trigger a market rally.

“If there’s any language that’s dovish at all the market will absolutely rip,” Antonelli said. “But I don’t think it’s going to happen. They can’t afford any dovish language with the (consumer price index) over 8%.”

If the Fed signals that it plans to stay on its current pace of rate hikes beyond November, that could lead to a sell-off Wednesday, said Farzin Azarm, managing director of equities trading at Mizuho Americas.

“The market would take it very, very negatively,” Azarm said.

Bond yields have been hovering near multiyear highs as the Fed continues to raise interest rates. The yield on the two-year Treasury, which tends to track expectations for Fed action, rose to 4.48% from 4.42% late Friday.

The 10-year yield, which influences interest rates on mortgages and many other loans, climbed to 4.07% from 4.02% late Friday.

Inflation has been a global problem. The European Union’s statistics agency, Eurostat, reported Monday that inflation hit another record in the 19 countries that use the euro currency, fueled by out-of-control prices for natural gas and electricity due to Russia’s war in Ukraine. According to Eurostat, annual inflation reached 10.7% in October.

Investors will be closely watching the U.S. government’s latest monthly employment report on Friday for any clues on whether the hot jobs market is cooling as inflation squeezes businesses. Wall Street still has plenty of earnings to review from big companies this week. Pfizer will report its results on Tuesday, followed by CVS on Wednesday. Starbucks reports its results on Thursday.

Market watch​

ASX 200 Futures 6,864.5 +17.5 (+0.26%) @ 06:59:55​

On Monday, the S&P 500 slipped 29.08 points, or 0.7%, to close at 3,871.98. The index is now down 18.8% so far this year.

The Dow fell 128.85 points, or 0.4%, to 32,732.95, while the Nasdaq dropped 114.31 points, or 1%, to 10,988.15.

 

[bigdog]

Asian benchmarks higher as markets await Fed rate moves

Asian shares are mostly higher ahead of a decision by the U.S. Federal Reserve on an interest rate increase to curb inflation.

apnews.com

Stocks end lower as hot jobs data signals aggressive Fed​

By DAMIAN J. TROISE and ALEX VEIGA

Stocks on Wall Street gave up early gains and closed lower Tuesday after an unexpectedly strong report on the job market raised concerns that the Federal Reserve will need to keep the pressure on inflation with aggressive interest rate increases.

The S&P 500 fell 0.4% after having been up as much as 1% shortly after trading opened. The Dow Jones Industrial Average fell 0.2% and the Nasdaq composite dropped 0.9%.

Big technology stocks were the biggest weights on the market. The companies, with their big valuations, have more heft in pushing the broader market up or down. Also, rising interest rates tend to make the sector look less attractive because of those high valuations. Apple fell 1.8%.

Communication services stocks, retailers and other companies that rely on consumer spending also helped drag down the overall S&P 500, keeping gains in banks, energy firms and other sectors of the market in check

Small company stocks held up better than the rest of the market. The Russell 2000 rose 0.3%.

The Labor Department reported that U.S. job openings rose unexpectedly in September, suggesting that the labor market is not cooling as fast as the Fed hoped for as it tries to slow economic growth.

The latest jobs data, which comes ahead of a broader employment report on Friday, is disappointing for investors who are looking for signs that inflation is easing and that the Fed might consider tempering its interest rate increases.

“That really fuels the expectation that the Fed has to do more hiking,” said Jason Draho, head of asset allocation for the Americas at UBS Global Wealth Management. “The labor market is still too tight for the Fed.”

Wall Street is concerned that the central bank is being too aggressive in slowing the economy, running the risk that it could bring on a recession.

Long-term Treasury yields turned higher after the report in job openings came out and rose back near multiyear highs. Those high rates have helped push mortgage rates above 7% this year.

The yield on the 10-year Treasury rose to 4.05% from 3.93% earlier in the morning.

The yield on the two-year Treasury, which tends to reflect market expectations of future moves by the Fed, rose to 4.54% from 4.40%

“The issue for investors is figuring out how long the hiking cycle will last,” Draho said. “(Fed Chair Jerome) Powell will want to leave all options on the table.”

The S&P 500 fell 15.88 points to 3,856.10. The Dow dropped 79.75 points to close at 32,653.20. The Nasdaq slid 97.30 points to 10,890.85. The Russell 2000 rose 4.53 points to 1,851.39.

Stocks are coming off a strong rally in October that resulted in big monthly gains for some of the major indexes. Even so, they remain in the red for the year, including the S&P 500, which is down about 19%.

Several big companies made solid gains following encouraging earnings reports and forecasts.

Pfizer rose 3.1% after reporting strong results and raising its profit forecast for the year. Uber surged 12% after giving investors a strong forecast for future bookings. Rival Lyft rose 3.5%.

Earnings remain a big focus for investors this week. Starbucks and Warner Bros. Discovery report earnings on Thursday and Cardinal Health does so on Friday.

Outside of earnings, Abiomed surged 49.9% after health care giant Johnson & Johnson said it will pay $16.6 billion for the heart pump maker. Johnson & Johnson slipped 0.5%.

The Fed is beginning a two-day policy meeting that’s expected to result in its sixth interest rate increase of the year as the central bank fights the worst inflation in four decades. The widespread expectation is for the Fed to push through another increase that’s triple the usual size, or three-quarters of a percentage point.

For its final policy meeting of the year, in December, opinions are currently split among investors as to whether the Fed will make another three-quarters point move or dial back to a half-point increase.

“The big focus is not so much on what the rate hike is going to be, but really what the comments are coming out of this week’s meeting in terms of any indications of whether there’ll be a little bit of softening as we move into early next year,” said Greg Bassuk, CEO at AXS Investments.

Market watch​

ASX futures 6,978.0 +14.0 +0.20% at 07:00:03 AEDT

The S&P 500 fell 0.4% after having been up as much as 1% shortly after trading opened. The Dow Jones Industrial Average fell 0.2% and the Nasdaq composite dropped 0.9%.

The S&P 500 fell 15.88 points to 3,856.10. The Dow dropped 79.75 points to close at 32,653.20. The Nasdaq slid 97.30 points to 10,890.85. The Russell 2000 rose 4.53 points to 1,851.39.

 

[bigdog]

Asia stocks fall after Fed says more US rate hikes likely

Asian stock markets have sunk after the Federal Reserve added to fears of a possible recession by saying it wasn’t finished raising U.S. interest rates to cool inflation.

apnews.com

Stocks fall after Fed says it’s too soon to pause rate hikes​

By DAMIAN J. TROISE and ALEX VEIGA

Stocks fell sharply after Federal Reserve Chair Jerome Powell signaled that interest rates will need to go even higher than previously thought in order to tame the worst inflation in decades.

The Fed also raised its benchmark rate by three-quarters of a percentage point Wednesday, its fourth consecutive hike of that magnitude and its sixth this year.

Markets had initially rallied after Fed policymakers suggested in a statement that they might slow the pace of increases. Those gains disappeared and stocks turned lower again after Powell delivered the sobering news that the Fed may need to hold back the economy with high interest rates for some time before the fight against inflation is done.

“It’s very premature, in my view, to think about or to be talking about pausing our rate hikes,” Powell in a news conference. “We have a ways to go.”

The remarks dashed Wall Street’s hopes that the central bank would signal that it might be considering easing back on its aggressive rate increases, which have weighed on the stock market this year. Higher rates not only slow the economy by discouraging borrowing, they also make stocks look less appealing compared to lower-risk assets like bonds and CDs

The S&P 500 fell 2.5%, its third straight drop. It had been up by 1% earlier. The Dow Jones Industrial Average fell 1.5% and the Nasdaq composite slid 3.4%.

Long-term Treasury yields jumped after a brief pullback. The yield on the two-year Treasury, which tends to track market expectations of future Fed action, rose to 4.58% from 4.55% shortly before the Fed released its statement. The yield on the 10-year Treasury, which helps set mortgage rates, climbed to 4.09% after having fallen to 3.98% earlier in the afternoon.

The Fed’s move raised its key short-term rate to a range of 3.75% to 4%, its highest level in 15 years. It was the central bank’s sixth rate hike this year, a streak that has made mortgages and other consumer and business loans increasingly expensive and heightened the risk of a recession.

In a statement announcing the rate hike the Fed suggested that it could soon shift to a more deliberate pace of rate increases. And said that in coming months it would consider the cumulative impact of its large rate hikes on the economy.

Any encouragement that gave investors faded when Powell said during a press conference that the central bank would rather make a mistake of taking interest rates too high than easing too quickly, noting that a premature pullback on rate hikes could lead inflation to become entrenched, which risks more pain for households.

Powell also said that regardless of whether the Fed dials down its interest rate hike in December, it may still end up pulling its key short-term rate ultimately to a higher level than previously thought because of data show inflation is worse than expected.

Wall Street has been closely watching the latest economic data, which is heavy on the employment market this week. It has remained strong despite inflation, which is being taken as a sign that the Fed will have to remain aggressive in its fight against high prices.

The latest jobs data from private payroll company ADP shows that companies added positions at a greater pace than expected in October. The report follows hotter-than-expected data from the government Tuesday on job openings.

“It’s sort of confirming that the Fed still has more work to do,” said Ryan Grabinski, managing director of investment strategy at Strategas, a Baird company.

Investors will get more employment data with the government’s weekly unemployment report on Thursday and a broader monthly jobs report on Friday. They have been closely watching the latest round of company earnings to get a better sense of inflation’s impact on corporate profits and outlooks. It’s been a mixed bag so far.

All told, the S&P 500 fell 96.41 points to 3,759.69. The Dow lost 505.44 points to 32,147.76. The Nasdaq slid 366.05 points to 10,524.80.

The 11 sectors in the S&P 500 closed in the red after shedding all their gains following a brief rally immediately after the Fed statement. Technology stocks, retailers and health care companies were among the biggest weights on the index. Apple fell 3.7%, Amazon dropped 4.8% and Johnson & Johnson slipped 1.5%.

Drugstore operator CVS rose 2.3% after raising its profit forecast following a strong third quarter. Short-term vacation rental marketplace Airbnb fell 13.4% after warning investors that bookings growth will slow in the fourth quarter. Beauty products maker Estee Lauder slid 8.1% after slashing its profit forecast as COVID-19 lockdowns in China and inflation hurt business.

Market watch​

ASX futures 200 index 6,873.0 down 106.0 down 1.52% @ 07:00:02 AM

The S&P 500 fell 96.41 points to 3,759.69. The Dow lost 505.44 points to 32,147.76. The Nasdaq slid 366.05 points to 10,524.80.

The S&P 500 fell 2.5%, its third straight drop. It had been up by 1% earlier. The Dow Jones Industrial Average fell 1.5% and the Nasdaq composite slid 3.4%.

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