NYSE Dow Jones finished today at:

[bigdog]

Wall Street loses ground, marking 2nd straight weekly loss

Stocks ended lower on Wall Street as worries grow that the Federal Reserve and other central banks are willing to bring on a recession if that’s what it takes to get inflation under control.

apnews.com

Wall Street loses ground, marking 2nd straight weekly loss​

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street racked up more losses Friday, as worries mounted that the Federal Reserve and other central banks are willing to bring on a recession if that’s what it takes to crush inflation.

The S&P 500 fell 1.1%, its third straight drop. The Dow Jones Industrial Average dropped 0.8% and the Nasdaq composite lost 1%. The major indexes marked their second straight weekly loss.

The pullback was broad. More than 80% of stocks in the benchmark S&P 500 fell. Technology and health care stocks were among the biggest weights on the market. Microsoft fell 1.7% and Pfizer slid 4.1%.

The Fed this week raised its forecast for how high it will ultimately take interest rates and tried to dash some investors’ hopes that rate cuts may happen next year. In Europe, the central bank came off as even more aggressive in many investors’ eyes.

“Inflation continues to be the monster in the room,” said Liz Young, head of investment strategy at SoFi.

Inflation has been easing from its hottest levels in decades, but remains painfully high. That has prompted the Fed to maintain its aggressive attack on prices by raising interest rates to slow economic growth. The strategy increasingly risks slamming on the brakes too hard and sending an already slowing economy into a recession

“Whether it’s a mild, medium, or deep recession is still unknown,” Young said.

A mixed report from S&P Global on Friday highlighted the recession risk. It showed that business activity slowed more than expected this month as inflation squeezes companies. It also noted that it was the sharpest drop since May of 2020, but that inflation pressures have also been easing.

“In short, the survey data suggest that Fed rate hikes are having the desired effect on inflation, but that the economic cost is building and recession risks are consequently mounting,” Chris Williamson, chief business economist at S&P Global Market Intelligence, said.

The S&P 500 fell 43.39 points to 3,852.36. It’s now down about 19% this year. The Dow dropped 281.76 points to finish at 32,920.46. The Nasdaq slid 105.11 points to 10,705.41.

Small company stocks had more moderate losses than the broader market. The Russell 2000 fell 11.19 points, or 0.6%, to 1,763.42.

Bond yields were mixed. The yield on the 10-year Treasury, which influences mortgage rates, rose to 3.49% from 3.45% late Thursday. The yield on the two-year Treasury, which closely tracks expectations for Fed moves, fell to 4.21% from 4.24% late Thursday.

The Fed on Wednesday ended its final meeting of the year by raising its short-term interest rate by half a percentage point, its seventh straight increase this year. Wall Street had been hoping that the central bank would signal an easing of rate increases heading into 2023, but the Fed instead signaled the opposite.

The federal funds rate stands at a range of 4.25% to 4.5%, the highest level in 15 years. Fed policymakers forecast that the central bank’s rate will reach a range of 5% to 5.25% by the end of 2023. Their forecast doesn’t call for a rate cut before 2024

Several companies bucked the broader losses on Friday after reporting strong financial results and forecasts. Software maker Adobe rose 3% after topping Wall Street’s fiscal fourth-quarter earnings forecasts. United States Steel gained 5.8% after giving investors a strong earnings forecast.

 

[bigdog]

The Australian share market looks set to continue its slide on Monday following a poor finish to the week on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 27 points or 0.4% lower this morning.

The S&P 500 fell 43.39 points to 3,852.36. It’s now down about 19% this year. The Dow dropped 281.76 points to finish at 32,920.46. The Nasdaq slid 105.11 points to 10,705.41.

On Wall Street, the Dow Jones was down 0.85%, the S&P 500 fell 1.1%, and the NASDAQ dropped 1%.

 

[bigdog]

Asian markets follow Wall St lower amid gloomy outlook

Asian stock markets have slid further amid gloom about weaker global economic growth as central banks raise interest rates to cool inflation.

apnews.com

Wall Street loses more ground, extending a losing streak​

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street started off the week with more losses for stocks Monday, as investors brace for higher interest rates from central banks to fight inflation.

The S&P 500 fell 0.9%, with most of the sectors in the benchmark index closing in the red. The Dow Jones Industrial Average fell 0.5% at the Nasdaq composite lost 1.5%. Small company stocks also fell, pulling the Russell 2000 1.3% lower.

The latest wave of selling extends the major indexes’ losing streak to a fifth day. Each index posted a weekly loss the past two weeks.

Markets have been slumping as hopes for a gentler Federal Reserve vanish amid stubbornly hot inflation. The central bank last week raised its forecast of how long interest rates have to stay elevated to cool inflation that has been hurting businesses and threatening spending. The European Central Bank also warned that more rate hikes are coming.

Communications services stocks, technology companies and retailers were among the biggest losers Monday. Disney slid 4.8%, Microsoft fell 1.7% and Home Depot dropped 1.9% lower

Facebook’s parent company fell 4.1% after the European Union accused the company of breaching antitrust rules by distorting competition in the online classified ads business

U.S. crude oil prices rose 1.2%. That helped boost some energy stocks. Marathon Petroleum gained 1.2%.

All told, the S&P 500 fell 34.70 points to 3,817.66. The index is down about 20% this year with less than two weeks left in 2022.

The Dow dropped 162.92 points to 32,757.54, while the Nasdaq fell 159.38 points to 10,546.03. The Russell 2000 gave up 1.4%.

European markets mostly rose, while Asian markets closed lower overnight.

Treasury yields gained ground. The yield on the 10-year Treasury, which influences mortgage rates, rose to 3.59% from 3.49% late Friday.

Investors have several economic reports to review this week as they try to determine the continuing path of inflation.

The National Association of Realtors delivers its November tally of U.S. home sales Wednesday. Home sales have been falling, but prices in the housing market have remained strong.

The Conference Board will release its consumer confidence report for December on Wednesday. Consumer confidence and spending has been another strong area of the economy, but inflation is starting to put a tighter squeeze on consumers

The government will release a closely watched monthly snapshot of consumer spending on Friday, the personal consumption expenditure price index for November. The report is monitored by the Fed as a barometer of inflation.

The Fed ended its final meeting of the year last week by raising its short-term interest rate by half a percentage point, its seventh straight increase this year. More importantly, it signaled that it may have to maintain high interest rates longer than Wall Street had been anticipating in order to tame inflation.

The federal funds rate stands at a range of 4.25% to 4.5%, the highest level in 15 years. Fed policymakers forecast that the central bank’s rate will reach a range of 5% to 5.25% by the end of 2023. Their forecast doesn’t call for a rate cut before 2024.

Inflation is showing signs of easing, but at a relatively slow pace. The Fed’s aggressive policy risks hitting the brakes on the economy too hard, while at the same time economic growth is already slowing because of pressure from inflation. That could result in a recession, which analysts expect in some form within 2023, though the severity and duration is difficult to forecast

MARKET WATCH

ASX 200 stocks are likely to slide after Wall Street ended a fourth straight session lower amid recession concerns.

ASX 200 futures are pointing to a lower start, down 27 points or 0.4 per cent ahead of the release of the minutes of the RBA’s recent rates meeting, due at 11.30am AEDT.

The S&P 500 fell 34.70 points to 3,817.66. The index is down about 20% this year with less than two weeks left in 2022.

The Dow dropped 162.92 points to 32,757.54, while the Nasdaq fell 159.38 points to 10,546.03. The Russell 2000 gave up 1.4%.

On Wall Street, the S&P 500 closed 0.9 per cent weaker, while the Dow Jones Industrial Average was down 0.5 per cent per cent and the Nasdaq Composite shed 1.5 per cent.

 

[bigdog]

Asian shares mixed as recession worries temper Wall St gains

Shares are mixed in Asia after a modestly higher close on Wall Street. Concerns over pressures on global growth have tempered gains in the absence of major data releases.

apnews.com

Stocks rise, bond yields jump after Japan surprises markets​

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA

NEW YORK (AP) — Stocks closed modestly higher on Wall Street, while bond markets around the world felt pain Tuesday after a surprise move from Japan’s central bank cranked up the pressure on an already slowing global economy.

The S&P 500 rose 0.1% after flipping between small losses and gains in the early going. The Dow Jones Industrial Average rose 0.3% and the Nasdaq composite barely budged after closing less than 0.1% higher. Small company stocks outdid the broader market, lifting the Russell 2000 index 0.5% higher.

The muted gains were enough to end a four-day losing streak for the major indexes.

The biggest action was in the bond market, where yields pushed higher after Japan, one of the world’s last bastions of super-low and economy-aiding interest rates, made moves that could allow rates to climb more than otherwise.

The Bank of Japan said Tuesday it still wants the yield on 10-year Japanese government bonds to remain at roughly zero, but it also said it would allow the yield to move up to 0.50% instead of the 0.25% cap it had held previously. What made Tokyo’s unexpected move a particular jolt was how much resistance it’s shown so far in joining the global campaign to hike rates in order to undercut high inflation.

“BoJ’s surprise move allowed it to take a small step away from the extreme dovish side of the monetary policy spectrum, where it had stood alone all year among major central banks,” wrote Jennifer Lee of BMO Economics in a note to clients. “It is not joining the rate-hikers out there, but it is now a tad closer.”

Higher yields make borrowing more expensive, which slows the economy while also pushing down on prices for stocks and other investments. Other central banks around the world, particularly in the United States and Europe, have been raising rates at such an explosive clip that a growing number of economists and investors see a recession hitting in 2023. Both the Federal Reserve and European Central Bank have pledged to keep raising rates into next year to be sure the job is done on getting inflation under control.

Aftershocks from the Bank of Japan’s move on Tuesday rippled through bond and currency markets around the world.

In the U.S., the yield on the 10-year Treasury rose to 3.68% from 3.59% late Monday. That yield helps set rates for mortgages and other economy-setting loans, which has already meant particular pain for the U.S. housing market.

A report on Tuesday showed U.S. homebuilders broke ground on fewer homes for a third straight month in November. The number of building permits, meanwhile, fell to its lowest level since June 2020 when the pandemic froze the economy.

The two-year U.S. Treasury yield, which tends to more closely track expectations for action from the Federal Reserve, was more reserved. It held steady at 4.26%.

In the foreign exchange market, Tokyo’s surprise move sent the value of the Japanese yen climbing against the U.S. dollar, which gave back some of its huge gains over the past year. The dollar fell to 131.50 Japanese yen, down 4% from a day earlier

The Nikkei 225 index of Japanese stocks also fell 2.5%.

Stocks worldwide have been under pressure the entire year on worries about high inflation, higher interest rates and a weakening economy.

“Markets continue to play the back-and-forth between inflation and concerns about Fed policy and growth,” said Zachary Hill, head of portfolio management at Horizon Investments.

Investors have been trying to push markets higher every time it seems that inflation is easing and every time they “run into the simple fact that the Fed needs to tighten financial conditions to slow down the economy,” Hill said.

In Shanghai, stocks lost 1.1% after the World Bank cut its forecast for China’s economic growth this year to 2.7% from its June outlook of 4.3%. The bank cited repeated shutdowns of major cities to fight COVID-19 outbreaks. China now is relaxing some of its anti-COVID restrictions, but worries are rising that resulting breakouts of the virus could mean their own hits to the world’s second-largest economy

European markets ended mixed.

On Wall Street, the Bank of Japan’s move had less of an impact on stocks.

“It was a surprise, a very unexpected move, but on its own it’s probably not enough to really be a risk-off event for markets,” said Ross Mayfield, investment strategist at Baird.

The S&P 500 rose 3.96 points to 3,821.62. The Dow added 92.20 points to 32,849.74. The Nasdaq rose 1.08 points to 10,547.11. The Russell 2000 picked up 9.44 points to 1,748.02.

Energy sector stocks led the S&P 500′s gains as the price of U.S. oil settled 1.2% higher. Halliburton climbed 3.8%, and Schlumberger rose 3.9%.

Communications, technology and banks also rose. Facebook parent Meta Platforms gained 2.3%, Adobe rose 2.9% and Charles Schwab added 1.7%. Tesla was the S&P 500′s biggest decliner, sliding 8.1%.

MARKET WATCH

ASX 200 futures stocks are set to open 58 points higher up 0.8 per cent to 7025 after Wall Street held on to small gains after Bank of Japan’s surprise rate move.

The S&P 500 rose 0.1% after flipping between small losses and gains in the early going. The Dow Jones Industrial Average rose 0.3% and the Nasdaq composite barely budged after closing less than 0.1% higher

The S&P 500 rose 3.96 points to 3,821.62. The Dow added 92.20 points to 32,849.74. The Nasdaq rose 1.08 points to 10,547.11.

 

[bigdog]

Asian shares advance, Hong Kong up 2.8%, after Wall St rally

Shares are higher in Asia after a rally on Wall Street as investors welcomed a report showing U.S. consumer confidence is holding up despite the Federal Reserve's campaign to fight inflation by raising interest rates.

apnews.com

Wall Street gains ground, turning higher for the week​

By DAMIAN J. TROISE and ALEX VEIGA

Stocks closed broadly higher on Wall Street Wednesday and pushed major indexes into the green for the week, as investors welcomed a report showing consumer confidence is holding up better than expected.

The S&P 500 and Nasdaq composite each rose 1.5%. The Dow Jones Industrial Average gained 1.6% with a lot of help from Nike, which soared after reporting better-than-expected results.

The market got a boost from a report showing consumer confidence is surprisingly strong, despite inflation squeezing wallets. The Conference Board’s consumer confidence index rose to 108.3 in December, up from 101.4 in November. The sharp rebound pushed the index to its highest level since April. Last month’s figure was the lowest since July.

“The news has delivered a kind of a sweet spot for the Federal Reserve,” said Megan Horneman, chief investment officer at Verdence Capital Management. “The consumer is staying relatively resilient.”

Consumer spending, along with the employment market, has been another strong area of the economy that has helped protect it from slipping into a recession. Wall Street has been hoping that the Fed can win its fight against inflation and avoid a recession, what economists call a “soft landing.” The latest consumer confidence report raises hopes for that outcome in 2023, analysts said.

“If the consumer continues to feel good, behave in a rational way and remain employed, the window for a soft landing expands,” said Keith Buchanan, portfolio manager at Globalt Investments.

The Fed’s key lending rate, the federal funds rate, stands at a range of 4.25% to 4.5%, the highest level in 15 years. Fed policymakers forecast that the rate will reach a range of 5% to 5.25% by the end of 2023. Their forecast doesn’t call for a rate cut before 2024.

Investors are worried that the Fed will go too far in raising interest rates and ultimately slow the economy so much that it slips into a recession. That has left investors closely focused on economic updates to get a better idea of how businesses and consumers are dealing with inflation.

New data released Wednesday showed the nation’s housing market continued to slow last month, as sales of previously occupied homes fell for the tenth month in a row. The housing market has been a strong area of the economy, but has been tempered by rising mortgage rates. That has made an already tight housing market even more difficult for prospective homebuyers

The government will release a closely watched monthly snapshot of consumer spending on Friday, the personal consumption expenditure price index for November. The report is monitored by the Fed as a barometer of inflation, which has been easing, but at a relatively slow pace. Economists expect the report to show that inflation continued cooling in November.

Technology companies powered a big share of the rally Wednesday. Apple rose 2.4%.

Health care and financial company stocks also helped lift the market. Eli Lilly rose 2.3% and Bank of America added 1.5%.

Nike surged 12.2% for the biggest gain among S&P 500 stocks after reporting results that trounced analysts’ estimates. FedEx rose 3.4% after reporting strong earnings. Energy stocks gained ground as U.S. crude oil prices settled 2.9% higher. Hess gained 3.1%

All told, the S&P 500 rose 56.82 points to 3,878.44. The Dow gained 526.74 points to 33,376.48. The Nasdaq rose 162.26 points to 10,709.37.

Small company stocks also gained ground. The Russell 2000 index rose 28.92 points, or 1.7%, to 1,776.94.

Treasury yields mostly fell. The yield on the 10-year Treasury, which influences mortgage rates, slipped to 3.67% from 3.69 late Tuesday.

Market snapshot​

ASX 200 futures were up 41 points or 0.6 per cent, to 7,111, at 8:30am AEDT on Thursday, December 22.

The S&P 500 rose 56.82 points to 3,878.44. The Dow gained 526.74 points to 33,376.48. The Nasdaq rose 162.26 points to 10,709.37.

The S&P 500 and Nasdaq composite each rose 1.5%. The Dow Jones Industrial Average gained 1.6% with a lot of help from Nike, which soared after reporting better-than-expected results.

 

[bigdog]

Wall Street points modestly higher ahead of inflation report

Wall Street pointed slightly higher in premarket trading as investors await the government’s final inflation-related report of the year.

apnews.com

US stocks slide as economic data stokes rate hike worries​

By DAMIAN J. TROISE, STAN CHOE and ALEX VEIGA

NEW YORK (AP) — Stocks closed broadly lower on Wall Street Thursday as stronger-than-expected reports on the U.S. economy stoked worries about interest rates staying high.

The S&P 500 fell 1.4% after having been down as much as 2.9% earlier in the day. The pullback brings Wall Street’s main measure of health back to a loss of nearly 20% for the year. The Dow Jones Industrial Average fell 1% and the Nasdaq closed 2.2% lower.

The selling was broad, with all 11 industry sectors in the S&P 500 ending up in the red. Technology stocks were the biggest drag on the benchmark index. Chipmaker Nvidia slumped 7%.

Usually, good data on the economy would be positive for markets, particularly when worries are high about a possible recession looming. But Thursday’s reports suggested the Federal Reserve may indeed follow through on its pledge to keep hiking interest rates and to hold them at a high level for a while in order to get inflation under control

The Fed is particularly worried about a still-strong job market giving more oxygen to inflation, which has come down a bit in recent months but remains close to its highest level in decades. One report on Thursday indicated employers laid off fewer workers last week than expected, while a separate report showed that the broad U.S. economy grew more strongly during the summer than forecast.

The reports forced a reminder of a longstanding mantra on Wall Street: Don’t fight the Fed. When it’s raising interest rates, the Fed is intentionally slowing the economy and increasing the risks of a potential recession. Higher rates also drag down on prices for stocks and other investments.

High-growth technology stocks have taken some of the year’s worst hits because they’re seen as some of the most vulnerable to rising rates. A discouraging profit report from chipmaker Micron Technology cast even more of a pall on the industry Thursday.

Micron fell 3.4% after it gave a weaker forecast for upcoming earnings than analysts expected as it faces softening demand.

Electric vehicle maker Tesla has also felt big pain from rising interest rates, though it’s also dealing with issues specific to itself and its CEO, Elon Musk. It tumbled 8.9%, bringing its loss for the year to around 64%. It’s taking the rare step of offering discounts on its two top-selling models through year’s end, an indication demand is slowing.

Worries are rising broadly about corporate profits across industries, which are contending with the weight of higher interest rates, still-high inflation and rising costs rise due to payroll and other expenses. A drop-off in corporate profits in 2023 could knock out another support for stocks, after profits strengthened through much of 2022.

Used-auto retailer CarMax dropped 3.7% after it reported much weaker profit for its latest quarter than analysts expected.

The market’s slide eased toward the end of the day, leaving major indexes to finish off the day’s lows. The S&P 500 dropped 56.05 points to 3,822.39. The Dow, which had been down 803 points, finished down 348.99 points at 33,027.49. The tech-heavy Nasdaq fell 233.25 points to close at 10,476.12.

Small-company stocks also fell. The Russell 2000 index dropped 22.85 points, or 1.3%, to 1,754.09.

Trading has been topsy-turvy across Wall Street recently as reports paint a mixed portrait of the economy.

The housing industry and other areas of the economy whose fortunes are closely tied to low interest rates have already shown sharp downturns. But consumer confidence has strengthened recently, offering hope for the biggest and most important part of the economy: consumer spending.

Inflation has been moderating since peaking in the summer, which at times has raised hopes on Wall Street that the Fed may back off its tough talk on interest rates. But Fed officials continue to hammer the message that they’ll hike rates further in 2023 and don’t envision a cut to rates before 2024.

The Fed has already hiked its key overnight rate up to its highest level in 15 years, after it began the year at a record low of roughly zero. That has a growing number of economists and investors are predicting a recession will hit the U.S. economy in 2023.

And the Fed is just one of many central banks around the world hiking rates at an explosive clip. Even the Bank of Japan, which has been a holdout in keeping interest rates super-low this year, this week made moves that would allow some rates to rise a bit.

The yield on the two-year U.S. Treasury, which tends to track expectations for Fed action, rose to 4.26% from 4.22% late Wednesday.

The 10-year yield, which helps dictate rates for mortgages and other economy-setting loans, rose to 3.68% from 3.67% a day earlier.

Market snapshot​

According to the latest SPI futures, the ASX 200 is expected to open 66 points lower this morning.

The S&P 500 fell 1.4% after having been down as much as 2.9% earlier in the day. The pullback brings Wall Street’s main measure of health back to a loss of nearly 20% for the year. The Dow Jones Industrial Average fell 1% and the Nasdaq closed 2.2% lower.

 

[bigdog]

I Wish You All A Merry Christmas and A Great New Year


U.S. markets will be closed on Monday for the Christmas holiday.

Asian shares higher in thin holiday trading

Shares have advanced in Asia in thin holiday trading. Markets in Hong Kong, Sydney and several other markets were closed.

apnews.com

Wall Street ends higher, still winds up with 3rd weekly loss​

By DAMIAN J. TROISE and ALEX VEIGA

A choppy day on Wall Street ended with broad gains for stocks Friday, though most of the major indexes wound up with their third weekly loss in a row.

Mixed economic news weighed on stocks early on, but the indexes rebounded by late afternoon amid relatively light trading ahead of a long holiday weekend.

The S&P 500 reversed a 0.7% loss to close 0.6% higher. With one week left of trading in 2022, the benchmark index is down 19.3% for the year.

The Dow Jones Industrial Average rose 0.5% and the Nasdaq composite eked out a 0.2% gain. The S&P 500 and Nasdaq posted their third straight weekly loss.

Markets are in a tricky situation where relatively solid consumer spending and a strong employment market reduce the risk of a recession but also raise the threat of higher interest rates from the Federal Reserve as it presses its campaign to crush inflation.

The government reported Friday that a key measure of inflation is continuing to slow, though it’s still far higher than anyone wants to see. The Federal Reserve monitors the inflation gauge in the consumer spending report, called the personal consumption expenditures price index, even more closely than it does the government’s better-known consumer price index.

Also, growth in consumer spending weakened last month by more than expected, but incomes were a bit stronger than expected.

Helping to support the market was a separate report from the University of Michigan indicating U.S. households are lowering their forecasts for upcoming inflation. That could help avoid a scenario the Federal Reserve has said often it’s desperate to prevent: a vicious cycle where shoppers rush to make purchases in advance of expected price rises, which would only worsen inflation.

“Investors are really looking to hang their hat on anything that would show a little bit more confidence in the direction of where things are going to go,” said Greg Bassuk, CEO at AXS Investments.

Treasury yields rose following the reports. The yield on the 10-year Treasury, which influences mortgage rates, rose to 3.75% from 3.69 late Thursday. The yield on the two-year Treasury, which tends to track actions by the Fed, rose to 4.31% from 4.28%.

The latest round of reports are the last big economic updates of the year and investors will soon turn their focus to the next round corporate earnings. Most investors are hoping to get a better sense of how consumers are doing through those reports and forecasts, along with the picture for corporate profits, said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance

“The stock market is in a tough spot,” he said “If the consumer starts slowing down, earnings are likely to decrease, but if the consumer remains strong, the Fed has to remain strong and interest rates keep rising.”

The Fed has been upfront about its plan to remain aggressive in raising interest rates in order to tame inflation, even though the pace of price increases continue to ease. The Fed has already hiked its key overnight rate to its highest level in 15 years, after it began the year at a record low of roughly zero. The key lending rate, the federal funds rate, stands at a range of 4.25% to 4.5%, and Fed policymakers forecast that the rate will reach a range of 5% to 5.25% by the end of 2023.

Their forecast doesn’t call for a rate cut before 2024. The high rates have raised concerns that the economy could slow too much and slip into a recession in 2023. High rates have also been weighing heavily on prices for stocks and other investments.

Inflation remains a global problem. Japan reported its core inflation rate, excluding volatile fresh foods, rose to 3.7% in November, the highest level since 1981, as surging costs for oil and other commodities added to upward price pressures in the world’s third-largest economy.

Roughly 80% of the stocks in the S&P 500 notched gains Friday. The index rose 22.43 points to 3,844.82. The Dow gained 176.44 points to 33,203.93. The Nasdaq rose 21.74 points to 10,497.86.

Oil and gas industry stocks were big gainers as energy futures prices closed broadly higher. Hess climbed 4.7%.

Communications services and financial stocks also posted solid gains. Disney rose 1.5% and American Express added 1.2%.

Small company stocks also rose. The Russell 2000 index picked up 6.85 points, or 0.4%, to 1,760.93.

Markets in Asia fell and markets in Europe closed mixed.

U.S. markets will be closed on Monday for the Christmas holiday.

 

[bigdog]

Hong Kong’s markets were closed for a holiday, as were those in Australia & New Zealand

Asian shares mixed after tech-led decline on Wall Street

Shares are mixed in Asia after a post-holiday retreat on Wall Street, as markets count down to the end of a painful year for investors.

apnews.com

Stocks close lower on Wall Street, adding to recent losses​

By ALEX VEIGA

Stocks closed lower Tuesday, adding to the market’s recent losses as Wall Street counts down its final days of a painful year for investors.

The S&P 500 fell 0.4%, while the Nasdaq composite finished 1.4% lower. Both indexes were coming off their third straight weekly loss. The Dow Jones Industrial Average eked out a 0.1% gain.

Trading was mostly muted as U.S. markets reopened following the long holiday weekend. Markets in Asia and Europe mostly rose after China said it will drop nearly all COVID-19 travel restrictions next month.

The move could ease some supply chain challenges for companies that source goods from China, but it could also lead to more spending by consumers there, which could fuel inflation, said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management.

“Reopening seems to rekindle some inflationary concerns, where the Chinese consumer is kind of let back out and goes back to consuming,” Hainlin said. “Maybe that’s adding to the inflation price pressures.”

The S&P 500 fell 15.57 points to 3,829.25. The Nasdaq dropped 144.64 points to 10,353.23. The Dow rose 37.63 points to 33,241.56.

Technology and communication services companies accounted for a big share of the decliners in the S&P 500. Apple fell 1.4% and Netflix lost 3.7%.

Airlines stocks fell broadly. A massive winter storm caused widespread delays and forced several carriers to cancel flights over the weekend. Delta Air Lines closed 0.8% lower, American Airlines dropped 1.4% and JetBlue slid 1.1%.

Southwest Airlines slid 6% after the company had to cancel roughly two-thirds of its flights over the last couple of days, which it blamed on problems related to staffing and weather. The federal government said it would investigate why the company lagged so far behind other carriers.

Tesla fell 11.4% for the biggest decline among S&P 500 stocks. The electric vehicle maker temporarily suspended production at a factory in Shanghai, according to published reports.

Energy stocks were the biggest gainers among S&P 500 companies. Hess added 1.2%.

Small company stocks also lost ground. The Russell 2000 index dropped 11.42 points, or 0.7%, to 1,749.52.

Treasury yields mostly rose as the U.S. bond market reopened. The yield on the 10-year Treasury, which influences mortgage rates, rose to 3.85% from 3.75% late Friday.

Trading on Wall Street is expected to be relatively light this holiday-shortened week as investors look ahead to 2023 after a dismal year for stocks.

Uncertainty about how far the Federal Reserve and other central banks would go to fight the highest inflation in decades has kept investors on edge. The Fed raised its key interest rate seven times this year and has signaled more hikes to come in 2023, even though the pace of price increases has been easing.

The high rates, which weigh heavily on prices for stocks and other investments, have fueled concerns that the economy could slow too much and slip into a recession next year.

The benchmark S&P 500 index set an all-time high at the beginning of January, but is now down nearly 20% for the year. The tech-heavy Nasdaq is down nearly 34%

Elsewhere around the world, shares mostly rose Tuesday after China announced it would relax more of its pandemic restrictions despite widespread outbreaks of COVID-19 that are straining its medical systems and disrupting business.

China’s National Health Commission said Monday that passengers arriving from abroad will no longer have to observe a quarantine, starting Jan. 8. They will still need a negative virus test within 48 hours of their departure and to wear masks on their flights.

But it was the latest step toward dropping once-strict virus-control measures that have severely limited travel to and from the world’s No. 2 economy.

“With economic activity floundering, and multinationals questioning the viability of China as a sourcing location, policymakers have — as so many times in the past — adopted a very business-like approach,” Stephen Innes of SPI Asset Management said in a commentary

Companies welcomed the move as an important step toward reviving slumping business activity.

China has joined other countries in treating cases instead of trying to stamp out infections. It has dropped or eased rules on testing, quarantines and movement, trying to reverse an economic slump. But the shift has flooded hospitals with feverish, wheezing patients, and authorities are going door to door and paying people older than 60 to get vaccinated against COVID-19.

The Shanghai Composite index jumped 1% to 3,096.57. Hong Kong’s markets were closed for a holiday, as were those in Australia.

Market Watch

The Australian share market looks set to fall on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 5 points lower this morning.

The S&P 500 fell 0.4%, while the Nasdaq composite finished 1.4% lower. Both indexes were coming off their third straight weekly loss. The Dow Jones Industrial Average eked out a 0.1% gain.

The S&P 500 fell 15.57 points to 3,829.25. The Nasdaq dropped 144.64 points to 10,353.23. The Dow rose 37.63 points to 33,241.56

Hong Kong’s markets were closed for a holiday, as were those in Australia & New Zealand

 

[bigdog]

Asian shares extend losses after Wall Street decline

Shares have fallen in Asia after benchmarks skidded more than 1% on Wall Street. U.S. futures were mixed and oil prices fell.

apnews.com

Stocks close lower on Wall Street; Southwest losses mount​

By DAMIAN J. TROISE and ALEX VEIGA

A broad slide for stocks added to Wall Street’s recent losses Wednesday, as investors count down to the end of the worst year for the S&P 500 since 2008.

The S&P 500 fell 1.2%, with technology, energy and industrial stocks among the biggest weights on the benchmark index. The tech-heavy Nasdaq composite slid 1.4%. Both indexes came into this week with three straight weekly losses.

The Dow Jones Industrial Average dropped 1.1%, while the fell Russell 2000 index of smaller company stocks fell 1.6%.

With two more days of trading left in 2022, the S&P 500 is headed for a roughly 20% drop for the year, even as profits and margins for companies in the index have hit record heights this year. The Dow is on pace for a 9.5% drop, while the Nasdaq is doing much worse, on pace to plunge 34.7%.

The latest losses don’t bode well for investors hoping for another “Santa Claus” rally. That’s Wall Street’s term for when stocks rise in the last five trading days of December and first two of January.

“The proverbial ‘Santa Claus’ rally, which since 1950 has statistically returned approximately 1.3-1.8% nearly 80% of the time, has looked as though Santa has taken an early vacation,” said Quincy Krosby, chief global strategist for LPL Financial.

Investors are in the middle of a mostly quiet and holiday-shortened week. Markets were closed on Monday for the observed Christmas holiday and there are no major economic reports expected this week.

A report from the National Association of Realtors showed that the housing market continued cooling amid high prices and steeper interest. Pending home sales fell 4% in November.

The report weighed down homebuilders. Toll Brothers fell 2.4%.

U.S. crude oil prices settled 0.7% lower and natural gas prices plunged 10.8%. That hurt energy stocks. Exxon Mobil fell 1.6%.

Southwest Airlines slid 5.2% as the carrier grappled with the fallout after cancelling thousands of flight cancellations. The airline’s CEO said it could be next week before the flight schedule returns to normal. Shares in other airlines also fell. Delta Air Lines dropped 2.8% and United Airlines fell 2.4%.

Tesla rose 3.3% as it stabilized from steep losses it suffered after reports Tuesday that it temporarily suspended production at a factory in Shanghai.

The Chinese government announced late Tuesday that it will start issuing new passports, a major step away from anti-virus travel barriers that likely will bring a flood of tourists out of China for next month’s Lunar New Year holiday. China has already said it will drop most of its COVID-19 travel restrictions next month.

Hong Kong’s Hang Seng climbed 1.6%, while the Shanghai Composite index dropped 0.3%.

Markets in Europe closed mostly lower.

In the U.S., the S&P 500 fell 46.03 points to 3,783.22. The Dow dropped 365.85 points to close at 32,875.71. The Nasdaq slid 139.94 points to 10,213.29. The Russell 2000 gave up 27.49 points to finish at 1,722.02.

Bond yields were mixed. The yield on the 10-year Treasury, which influences mortgage rates, rose to 3.88% from 3.85% Tuesday. The yield on the two-year Treasury fell to 4.34% from 4.38% late Tuesday.

Wall Street remains on edge and will likely continue dealing with volatile trading as the Federal Reserve continues its fight against stubbornly hot inflation. The Fed and other central banks have been raising interest rates to stifle borrowing and slow spending in order to tame inflation. The strategy, though, risks slowing the economy too much and bringing on a recession.

The Fed has already raised its key interest rate seven times this year and is expected to continue raising rates in 2023. The key lending rate, the federal funds rate, stands at a range of 4.25% to 4.5%, and Fed policymakers forecast that the rate will reach a range of 5% to 5.25% by the end of 2023. Their forecast doesn’t call for a rate cut before 2024.

MARKET WATCH

The Australian share market looks set to fall again on Thursday following another poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 51 points or 0.73 per cent lower this morning.

The S&P 500 fell 46.03 points to 3,783.22. The Dow dropped 365.85 points to close at 32,875.71. The Nasdaq slid 139.94 points to 10,213.29. The Russell 2000 gave up 27.49 points to finish at 1,722.02.

The S&P 500 fell 1.2%, with technology, energy and industrial stocks among the biggest weights on the benchmark index. The tech-heavy Nasdaq composite slid 1.4%. Both indexes came into this week with three straight weekly losses.

The Dow Jones Industrial Average dropped 1.1%

 

[bigdog]

Asian markets follow Wall St up but on track for annual loss

Asian stock markets have followed Wall Street higher following encouraging U.S. employment data but are headed for double-digit losses for the year.

apnews.com

Stocks rally to higher close as job market remains strong​

By DAMIAN J. TROISE and ALEX VEIGA

A relatively light day of trading on Wall Street ended Thursday with a broad rally for stocks as investors welcomed new jobless benefits data that shows the labor market remains strong.

The S&P 500 rose 1.7%, with roughly 95% of stocks within the benchmark index closing higher. The gains more than made up for the index’s losses the previous two days, the latest oscillation in what has been a volatile, holiday-shortened week for stocks.

The Dow Jones Industrial Average rose 1% and the Nasdaq composite gained 2.6%.

Technology stocks, which are down 29% this year, powered much of the rally. Apple and Microsoft each rose 2.8%.

Tesla jumped 8.1% as it continued to recover from steep losses Tuesday following reports it temporarily suspended production at a factory in Shanghai. The stock is still down nearly 66% for the year.

Investors have been hoping for a “Santa Claus” rally. That’s Wall Street’s term for when stocks rise in the last five trading days of December and first two of January. Even a late rally likely wouldn’t change the broader market’s trajectory for the month.

Every major index is headed for a loss in December that will cap a dismal year. While companies in the S&P 500 raked in record profits this year, investors in the benchmark index will see a roughly 20% loss in 2022, which would mark its worst year since 2008.

Still, going back to World War II, history suggests the market may fare better next year, said Sam Stovall, chief investment strategist at CFRA.

“When you look at down years for the market, history offers some encouragement in that the market is up an average of 14% in the following year and has risen in price more than 80% of the time,” Stovall said.

The S&P 500 rose 66.06 points to 3,849.28. The Dow added 345.09 points to 33,220.80. The Nasdaq rose 264.80 points to close at 10,478.09.

Small company stocks also posted solid gains. The Russell 2000 index rose 44.23 points, or 2.6%, to 1,766.25.

Treasury yields were mixed. The yield on the 10-year Treasury fell to 3.83% from 3.89% late Wednesday.

Markets in Europe closed higher, while markets in Asia slipped.

Investors have been focused on the Federal Reserve’s continuing fight against stubbornly hot inflation. The central bank has been raising interest rates in an effort to stifle borrowing and spending and cool inflation, but the strategy risks going too far and sending the economy into a recession. That has put an even greater focus on a wide range of data for Wall Street as it tries to determine whether inflation is cooling and how various areas of the economy are faring.

The latest update from the U.S. shows that the number of people seeking unemployment benefits rose only slightly last week. The labor market has been one of the stronger areas of the economy. That’s normally good news and it has helped create a bulwark against a recession as other areas of the economy slow. It has also made the Fed’s fight against inflation more difficult and means the central bank will have to likely remain aggressive, raising the risk that its policy could bring on a recession.

The Fed has already raised its key interest rate seven times this year and is expected to continue raising rates in 2023. The key lending rate, the federal funds rate, stands at a range of 4.25% to 4.5%, and Fed policymakers forecast that the rate will reach a range of 5% to 5.25% by the end of 2023. Their forecast doesn’t call for a rate cut before 2024.

MARKET WATCH

The Australian share market looks set to end the week and year in a very positive fashion following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 55 points or 0.78% higher this morning. The Australian benchmark slumped 0.94 per cent yesterday to a seven-week closing low.

The S&P 500 rose 1.7%, with roughly 95% of stocks within the benchmark index closing higher. The gains more than made up for the index’s losses the previous two days, the latest oscillation in what has been a volatile, holiday-shortened week for stocks.

The Dow Jones Industrial Average rose 1% and the Nasdaq composite gained 2.6%

US 10-year bond yields fell to 3.83 per cent.

Oil prices fell with the global benchmark Brent down 1.2 per cent to $US82.26 per barrel and US Nymex off 0.4 per cent to $US78.66 per barrel.

Cryptocurrency leader bitcoin rebounded and is up 0.8 per cent at $US16,601.56, while ethereum is also 1 per cent stronger at $US1195.48.

The Aussie dollar is trading around US67.90c near the US close.

 

[Garpal Gumnut]

Asian markets follow Wall St up but on track for annual loss

Asian stock markets have followed Wall Street higher following encouraging U.S. employment data but are headed for double-digit losses for the year.

apnews.com

Stocks rally to higher close as job market remains strong​

By DAMIAN J. TROISE and ALEX VEIGA

A relatively light day of trading on Wall Street ended Thursday with a broad rally for stocks as investors welcomed new jobless benefits data that shows the labor market remains strong.

The S&P 500 rose 1.7%, with roughly 95% of stocks within the benchmark index closing higher. The gains more than made up for the index’s losses the previous two days, the latest oscillation in what has been a volatile, holiday-shortened week for stocks.

The Dow Jones Industrial Average rose 1% and the Nasdaq composite gained 2.6%.

Technology stocks, which are down 29% this year, powered much of the rally. Apple and Microsoft each rose 2.8%.

Tesla jumped 8.1% as it continued to recover from steep losses Tuesday following reports it temporarily suspended production at a factory in Shanghai. The stock is still down nearly 66% for the year.

Investors have been hoping for a “Santa Claus” rally. That’s Wall Street’s term for when stocks rise in the last five trading days of December and first two of January. Even a late rally likely wouldn’t change the broader market’s trajectory for the month.

Every major index is headed for a loss in December that will cap a dismal year. While companies in the S&P 500 raked in record profits this year, investors in the benchmark index will see a roughly 20% loss in 2022, which would mark its worst year since 2008.

Still, going back to World War II, history suggests the market may fare better next year, said Sam Stovall, chief investment strategist at CFRA.

“When you look at down years for the market, history offers some encouragement in that the market is up an average of 14% in the following year and has risen in price more than 80% of the time,” Stovall said.

The S&P 500 rose 66.06 points to 3,849.28. The Dow added 345.09 points to 33,220.80. The Nasdaq rose 264.80 points to close at 10,478.09.

Small company stocks also posted solid gains. The Russell 2000 index rose 44.23 points, or 2.6%, to 1,766.25.

Treasury yields were mixed. The yield on the 10-year Treasury fell to 3.83% from 3.89% late Wednesday.

Markets in Europe closed higher, while markets in Asia slipped.

Investors have been focused on the Federal Reserve’s continuing fight against stubbornly hot inflation. The central bank has been raising interest rates in an effort to stifle borrowing and spending and cool inflation, but the strategy risks going too far and sending the economy into a recession. That has put an even greater focus on a wide range of data for Wall Street as it tries to determine whether inflation is cooling and how various areas of the economy are faring.

The latest update from the U.S. shows that the number of people seeking unemployment benefits rose only slightly last week. The labor market has been one of the stronger areas of the economy. That’s normally good news and it has helped create a bulwark against a recession as other areas of the economy slow. It has also made the Fed’s fight against inflation more difficult and means the central bank will have to likely remain aggressive, raising the risk that its policy could bring on a recession.

The Fed has already raised its key interest rate seven times this year and is expected to continue raising rates in 2023. The key lending rate, the federal funds rate, stands at a range of 4.25% to 4.5%, and Fed policymakers forecast that the rate will reach a range of 5% to 5.25% by the end of 2023. Their forecast doesn’t call for a rate cut before 2024.

MARKET WATCH

The Australian share market looks set to end the week and year in a very positive fashion following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 55 points or 0.78% higher this morning. The Australian benchmark slumped 0.94 per cent yesterday to a seven-week closing low.

The S&P 500 rose 1.7%, with roughly 95% of stocks within the benchmark index closing higher. The gains more than made up for the index’s losses the previous two days, the latest oscillation in what has been a volatile, holiday-shortened week for stocks.

The Dow Jones Industrial Average rose 1% and the Nasdaq composite gained 2.6%

US 10-year bond yields fell to 3.83 per cent.

Oil prices fell with the global benchmark Brent down 1.2 per cent to $US82.26 per barrel and US Nymex off 0.4 per cent to $US78.66 per barrel.

Cryptocurrency leader bitcoin rebounded and is up 0.8 per cent at $US16,601.56, while ethereum is also 1 per cent stronger at $US1195.48.

The Aussie dollar is trading around US67.90c near the US close.

View attachment 151027

@bigdog. Thanks for all the updates through 22.

Onwards and upwards in 23.

gg

 

[bigdog]

U.S. stock markets will be closed Monday in observance of the New Year’s Day holiday.

Health and happiness to you and yours in the new year ahead.


Our ASX Year End results were well and truly down for 2022 vs 2021:

S&P 500 closes out dismal year with worst loss since 2008

Stocks are closing out 2022 with more losses, giving the S&P 500 its worst year since 2008. The benchmark index fell 0.3% Friday, the last trading day of the year, leaving it down 19.4% for the year.

apnews.com

S&P 500 closes out dismal year with worst loss since 2008​

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street capped a quiet day of trading with more losses Friday, as it closed the book on the worst year for the S&P 500 since 2008.

The S&P 500 index finished with a loss of 19.4% for 2022 — just its third annual decline since the financial crisis 14 years ago and a painful reversal for investors after the S&P 500 notched a gain of nearly 27% in 2021.

The Nasdaq composite, with a heavy component of technology stocks, racked up an even bigger loss of 33.1%.

The Dow Jones Industrial Average, meanwhile, posted an 8.8% loss for 2022.

Stocks struggled all year as inflation put increasing pressure on consumers and raised concerns about economies slipping into recession. Central banks raised interest rates to fight high prices. The Federal Reserve’s aggressive rate hikes remain a major focus for investors as the central bank walks a thin line between raising rates enough to cool inflation, but not so much that they stall the U.S. economy into a recession.

The Fed’s key lending rate stood at a range of 0% to 0.25% at the beginning of 2022 and will close the year at a range of 4.25% to 4.5% after seven increases. The U.S. central bank forecasts that will reach a range of 5% to 5.25% by the end of 2023. Its forecast doesn’t call for a rate cut before 2024.

Rising interest rates prompted investors to sell the high-priced shares of technology giants such as Apple and Microsoft as well as other companies that flourished as the economy recovered from the pandemic. Amazon and Netflix lost roughly 50% of their market value. Tesla and Meta Platforms, the parent company of Facebook, each dropped more than 60%, their biggest-ever annual declines.


Russia’s invasion of Ukraine worsened inflationary pressure earlier in the year by making oil, gas and food commodity prices even more volatile amid existing supply chain issues. Oil closed Friday around $80, about $5 higher than where it started the year. But in between oil jumped above $120, helping energy stocks post the only gain among the 11 sectors in the S&P 500, up 59%.

China spent most of the year imposing strict COVID-19 policies which crimped production for raw materials and goods, but is now in the process of removing travel and other restrictions. It’s uncertain at this point what impact China’s reopening will have on the global economy.

The Fed’s battle against inflation, though, will likely remain the overarching concern on Wall Street in 2023, according to analysts. Investors will continue searching for a better sense of whether inflation is easing fast enough to take pressure off of consumers and the Fed.

If inflation continues to show signs of easing, and the Fed reins in its rate-hiking campaign, that could pave the way for a rebound for stocks in 2023, said Jay Hatfield, CEO of Infrastructure Capital Advisors.

“The Fed has been the overhang on this market, really since November of last year, so if the Fed pauses and we don’t have a major recession we think that sets us up for a rally,” he said.

There was scant corporate or economic news for Wall Street to review Friday. That, plus the holiday shortened week, set the stage for mostly light trading.

The S&P 500 fell 9.78 points, or 0.3%, to finish at 3,839.50. The index posted a 5.9% loss for the month of December.

The Dow dropped 73.55 points, or 0.2%, to close at 33,147.25. The Nasdaq slipped 11.61 points, or 0.1%, to 10,466.48.

Tesla rose 1.1%, as it continued to stabilize after steep losses earlier in the week. The electric vehicle maker’s stock plummeted 65% in 2022, erasing about $700 billion of market value.

Southwest Airlines rose 0.9% as its operations returned to relative normalcy following massive cancellations over the holiday period. The stock still ended down 6.7% for the week.

Small company stocks also fell Friday. The Russell 2000 shed 5 points, or 0.3%, to close at 1,761.25.

Bond yields mostly rose. The yield on the 10-Year Treasury, which influences mortgage rates, rose to 3.88% from 3.82% late Thursday. Although bonds typically fair well when stocks slump, 2022 turned out to be one of the worst years for the bond market in history, thanks to the Fed’s rapid rate increases and inflation.

Several big updates on the employment market are on tap for the first week of 2023. It has been a particularly strong area of the economy and has helped create a bulwark against a recession. That has made the Fed’s job more difficult, though, because strong employment and wages mean it may have to remain aggressive to keep fighting inflation. That, in turn, raises the risk of slowing the economy too much and bringing on a recession.

The Fed will release minutes from its latest policy meeting on Wednesday, potentially giving investors more insight into its next moves.

The government will also release its November report on job openings Wednesday. That will be followed by a weekly update on unemployment on Thursday. The closely-watched monthly employment report is due Friday.

Wall Street is also waiting on the latest round of corporate earnings reports, which will start flowing in around the middle of January. Companies have been warning investors that inflation will likely crimp their profits and revenue in 2023. That’s after spending most of 2022 raising prices on everything from food to clothing in an effort to offset inflation, though many companies went further and actually padded their profit margins.

Companies in the S&P 500 are expected to broadly report a 3.5% drop in earnings during the fourth quarter, according to FactSet. Analysts expect earnings to then remain roughly flat through the first half of 2023.

U.S. stock markets will be closed Monday in observance of the New Year’s Day holiday.

 

[divs4ever]

Wall St ends 2022 with biggest annual drop since 2008

Wall St ends 2022 with biggest annual drop since 2008 By Reuters

Wall St ends 2022 with biggest annual drop since 2008

www.investing.com

 

[Knobby22]

Wall St ends 2022 with biggest annual drop since 2008

Wall St ends 2022 with biggest annual drop since 2008 By Reuters

Wall St ends 2022 with biggest annual drop since 2008

www.investing.com

Wow, didn't realise the loss was so large 19.4%.
NASDAQ down 33%. Wow!

 

[divs4ever]

well the NASDAQ was massively overvalued earlier ( and bailed out during the virus saga )

maybe more interesting is the lack of in-depth reporting on this slide in mainstream finance reporting

some of the NASDAQ components have fallen much more than 33% ( which coincidentally are among the largest cap. businesses in the world )

 

[bigdog]

ASX 200 expected to rise​

The Australian share market looks set to rise again on Tuesday following a decent night of trade in Europe. According to the latest SPI futures, the ASX 200 is poised to open the day 31 points or 0.5% higher.

In Europe, the DAX rose 1.05% and the CAC climbed 1.9% amid upbeat economic data. Wall Street was closed for a public holiday.

 

[bigdog]

Asian stock markets gain ahead of Fed update

Asian stock markets are higher ahead of the release of minutes from a Federal Reserve meeting that investors hope might show the U.S. central bank is moderating its plans for more interest rate hikes to cool inflation.

apnews.com

Wall Street slips in 2023 open after ending dismal year​

By DAMIAN J. TROISE and ALEX VEIGA

Stocks gave up an early gain and ended lower Tuesday, a lackluster first trading day of 2023 for Wall Street just days after it closed the books on its worst year since 2008.

The S&P 500 shed a 1% gain and finished 0.4% lower. The Dow Jones Industrial Average slipped less than 0.1% and the Nasdaq composite dropped 0.8%. Small-company stocks also lost ground, pulling the Russell 2000 index 0.6% lower.

Technology stocks were among the biggest weights on the market. Apple fell 3.7%, leaving its market value below $2 trillion for the first time since March 8, 2021. Shares in the iPhone maker fell nearly 27% in 2022, their first annual decline in four years amid a broad slide in technology sector stocks.

Long-term bond yields fell significantly. The yield on the 10-year Treasury, which influences mortgage rates, fell to 3.77% from 3.88% late Friday. Stock and bond markets were closed Monday for the observed New Year’s Day holiday.

Investors are opening a new year with the same concerns that weighed on markets in 2022, leading the benchmark S&P 500 to plunge nearly 20% for the year, just its third annual decline since the financial crisis 14 years ago.

“With the market down 20%, things are on sale, 20% off,” said Randy Frederick, managing director of trading & derivatives at Charles Schwab. “You’d think people would be willing to come in and buy a little bit, if they’re long-term focused. In the short term, it’s a little bit tougher.”

Inflation is easing, but remains stubbornly hot, which has prompted the Federal Reserve to keep raising interest rates to slow economic growth. That has left Wall Street bracing for the recession and higher unemployment that could result from those policies.

The Fed will release minutes from its December policy meeting on Wednesday, potentially giving investors more insight into its decision-making process and thoughts heading into 2023. The central bank’s next policy decision on interest rates is set for Feb. 1.

The Fed’s key lending rate stands at a range of 4.25% to 4.5% after rocketing from a range of 0% to 0.25% at the beginning of 2022. The U.S. central bank forecasts that it will reach a range of 5% to 5.25% by the end of 2023 and it currently doesn’t call for a rate cut before 2024

Investors are also looking ahead this week to several updates on the employment market, which has been a strong area of the broader economy. That has helped buffer the economy from a recession, analysts have said, but it also makes the Fed’s fight against inflation more difficult and raises that risk that it could go too far and bring on a recession.

The government will release a report Wednesday on job openings for November, followed by a weekly report on unemployment on Thursday. The broader and closely-watched monthly report on employment, for December, will be released on Friday.

”If we get a weak report, that would be a boost to the market because it might imply that the Fed will ease back a bit on the rate hikes,” Frederick said.

Wall Street is also waiting on the latest round of corporate earnings reports, which will start flowing heavily around the middle of January. Analysts polled by FactSet expect earnings for companies in the S&P 500 to broadly slip during the fourth quarter and remain flat for the first half of 2023.

Energy stocks also weighed on the market Tuesday as U.S. oil prices settled 4.1% lower. Hess fell 5.1%.

Facebook parent Meta Platforms rose 3.7% to lead a rally in communications services stocks. Gains in several big banks and other financial stocks also helped keep the market’s losses in check. Wells Fargo rose 1.2%.

Tesla plunged 12.2% for the biggest decline among S&P 500 stocks after the electric vehicle maker’s 2022 sales disappointed investors.

Gold producer Newmont rose 5%, the biggest gain in the S&P 500, as prices for the precious metal rose.

All told, the S&P 500 fell 15.36 points to 3,824.14. The Dow slipped 10.88 points to 33,136.37. The Nasdaq slid 79.50 points to 10,386.98. The Russell 2000 fell 10.51 points to 1,750.73.

Markets in Europe and Asia gained ground.

ASX to open higher, despite Wall St losses​

The Australian share market looks set to rebound on Wednesday despite a very volatile night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 59 points or 0.85% higher this morning.

The local share market is set to rebound from yesterday's significant losses (which took the ASX 200 to its lowest level in two months).

The S&P 500 shed a 1% gain and finished 0.4% lower. The Dow Jones Industrial Average slipped less than 0.1% and the Nasdaq composite dropped 0.8%.

All told, the S&P 500 fell 15.36 points to 3,824.14. The Dow slipped 10.88 points to 33,136.37. The Nasdaq slid 79.50 points to 10,386.98.

However, the Australian dollar was buying 67.26 US cents, after dropping by a hefty 1.1% overnight.

It's also weaker against the Japanese currency, having dropped 1.4% to 88.06 yen.

 

[bigdog]

Asia shares up as sentiments boosted by Fed minutes, US jobs

Asian shares are mostly higher following a rally on Wall Street as investors assessed minutes from the Federal Reserve’s latest meeting of policymakers and welcomed encouraging data on U.S. jobs.

apnews.com

Stocks end higher after Fed meeting minutes, strong job data​

By DAMIAN J. TROISE and ALEX VEIGA

Stocks on Wall Street closed broadly higher Wednesday after wavering for much of the day as investors weighed the minutes from the Federal Reserve’s latest meeting of policymakers and welcomed encouraging data on job openings.

The major indexes rallied following a government report showing that job openings increased more than expected in November. Stocks then shed some of their gains after the minutes from the Fed meeting last month underscored how the central bank remains determined to keep rates high to crush inflation.

The S&P 500 rose 0.8% after having been down 0.2% in the early going. The Dow Jones Industrial Average rose 0.4% and the Nasdaq composite added 0.7%. Small company stocks outpaced the broader market, lifting the Russell 2000 index 1.2% higher.

The Fed raised its key short-term interest rate last month for the seventh time in 2022 and signaled more hikes to come. Still, the increase was smaller than those announced after its previous four meetings, reflecting signs that inflation, while still high, has been showing signs of easing.

The minutes from the mid-December meeting show that Fed officials remained determined to keep rates high and have taken little comfort from inflation’s decline from a peak of 9.1% in June to 7.1% in November.

Stocks marched higher prior to the 2 p.m. Eastern release of the Fed minutes after the government reported that the number of job openings in November was higher than expected. While that could maintain pressure on the Fed to keep interest rates high to fight inflation, the resilience in the labor market also bolsters hopes on Wall Street that the economy can avoid sliding into a protracted recession.

“I think the market is trying to figure out if the recession indeed comes, will it be a bad one,” said Jeffrey Roach, chief economist for LPL Financial. “I think investors are right, that if we do fall into a recession, it’s not going to be a deep and prolonged recession.”

The latest update on job openings is the first set of employment data that Wall Street will get this week. The government will release its weekly unemployment report on Thursday and its closely watched monthly employment report, for December, on Friday.

The strong jobs market helped insulate a weakening economy from slipping into a recession in 2022. The Fed, though, is trying to lower inflation with its rate increases and that also means it needs to cool employment.

The minutes from the central bank’s last policy meeting shows Fed officials suggested that a continuing streak of robust hiring could keep inflation elevated and was a key reason why they expected to raise interest rates this year more than they had previously forecast.

The Fed’s benchmark lending rate stands at a range of 4.25% to 4.5%, up from close to zero following seven increases last year. It forecast that the rate will reach a range of 5% to 5.25% by the end of 2023 and it isn’t calling for a rate cut before 2024.

Crude oil prices fell and Treasury yields ended lower Wednesday.

The yield on the 10-year Treasury, which influences mortgage rates, fell to 3.68% from 3.75% late Tuesday. The yield on the two-year Treasury, which tends to track expectations for Fed action, slipped to 4.34% from 4.38%.

Banks, companies that rely on consumer spending and communications stocks accounted for a big share of the rally. Citigroup rose 2.6%, Starbucks added 3.6% and Netflix gained 4.9%.

Energy stocks fell as the price of U.S. crude oil settled 5.3% lower. Chevron fell 1.1%.

More than 80% of the stocks in the S&P 500 notched gains. The benchmark index rose 28.83 points to 3,852.97. The Dow added 133.40 points to close at 33,269.77. The Nasdaq rose 71.78 points to 10,458.76. The Russell 2000 gained 21.81 points to close at 1,772.54.

The latest updates for the job market comes amid more layoffs within the technology sector, which has been dealing with falling demand as inflation squeezes consumers.

Investors cheered several companies that decided to make cuts to their workforces as they face weaker demand. Cloud computing software company Salesforce rose 3.6% after it announced it is laying off about 10% of its workforce. Video hosing platform Vimeo rose 4% after reportedly notifying workers about job cuts.

Coinbase jumped 12.2% following the announcement of a $100 million settlement with New York State over what regulators called failures in the cryptocurrency trading platform’s systems for spotting possible criminal activity.

GE Healthcare Technologies climbed 8% in its market debut. General Electric, which spun off the company, rose 5.9%.

MARKET WATCH

The Australian share market looks set to rise on Thursday despite a mixed night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 26 points or 0.35% higher this morning.

The S&P 500 rose 0.8% after having been down 0.2% in the early going. The Dow Jones Industrial Average rose 0.4% and the Nasdaq composite added 0.7%.

S&P 500 notched gains and rose 28.83 points to 3,852.97. The Dow added 133.40 points to close at 33,269.77. The Nasdaq rose 71.78 points to 10,458.76.

 

[bigdog]

Asian shares mostly rise in muted trading on bargain-hunting

Asian shares are mostly higher after Wall Street benchmarks fell on worries that the U.S. Federal Reserve will keep raising interest rates.

apnews.com

Another hot reading on job market sends Wall Street lower​

By DAMIAN J. TROISE and ALEX VEIGA

Stocks fell broadly on Wall Street and Treasury yields rose Thursday after another hot reading on the job market raised worries that the Federal Reserve will need to keep inflicting pain on the economy to fight inflation.

The S&P 500 fell 1.2%, clawing back all of its gains from a day earlier. The benchmark index is on pace for its fifth straight weekly loss. The Dow Jones Industrial Average fell 1% and the Nasdaq composite lost 1.5%.

Technology, health care and industrial stocks weighed most on the market. Microsoft fell 3%, UnitedHealth Group slid 2.9% and Honeywell International lost 2.7%.

Energy stocks bucked the broader market slide as the price of U.S. crude oil settled 1.1% higher. Exxon Mobil rose 2.2%.

The pullback came after payroll company ADP reported a bigger-than-expected increase in jobs at private companies last month. The U.S. government also reported that the number of Americans applying for unemployment benefits fell to the lowest level in more than three months last week

On Wednesday, a government report showed a higher than expected number of job openings in November. The strong labor market reports set the stage for the release on Friday of the Labor Department’s snapshot of hiring in December

In recent months, that closely watched monthly employment figure has typically come in stronger-than-expected when following a robust ADP jobs report, according to Brad McMillan, chief investment officer for Commonwealth Financial Network.

“The real question for investors tomorrow will be whether the economy continues to grow faster than expected — and faster than the Fed wants — or will it stay in a sweeter spot with continued moderate growth,” he wrote Thursday. “The data suggests the former.”

The continued strength in the job market makes the Fed’s job of reining in inflation more difficult by putting upward pressure on wages. The central bank remains determined to keep interest rates high to slow economic growth and tame inflation. The strategy, though, risks going too far bringing on a recession.

The yield on the two-year Treasury, which tends to track expectations for future Fed actions, was steady throughout most of the early morning, but rose significantly following the latest jobs reports. It jumped to 4.46% from 4.36% late Wednesday.

The yield on the 10-year Treasury, which influences mortgage rates, rose to 3.71% from 3.69% late Wednesday. The nation’s housing market has slowed sharply over the past year as the average rate on the benchmark 30-year mortgage more than doubled.

The Fed’s benchmark lending rate stands at a range of 4.25% to 4.5%, up from close to zero following seven increases last year. It has forecast that the rate will reach a range of 5% to 5.25% by the end of 2023 and it isn’t calling for a rate cut before 2024.

Inflation has been easing from a peak of 9.1% in June to 7.1% in November and investors have been hoping for signs that could prompt the Fed to ease up on applying the brakes to the economy with high interest rates. Those hopes have been dashed so far.

Meanwhile, Wall Street is looking ahead to the latest round of corporate earnings to get a better a sense of how companies are handling hot inflation and weakening consumer demand. Companies in the S&P 500 will pick up the pace of reporting in a few weeks, but some results are already trickling in.

French fry maker Lamb Weston rose 9.8% and Hunt’s ketchup maker Conagra rose 3.4% after reporting strong results for their most recent quarters. Constellation Brands, which markets Corona beer and Robert Mondavi wine, fell 9.7%, the largest drop among S&P 500 stocks, after the company trimmed its profit forecast for the year.

Bed Bath & Beyond slumped 29.9%, its biggest slide in nearly two years, after the already struggling home goods retailer warned investors that it may need to file for bankruptcy as sales continue to drop and it struggles to attract shoppers.

All told, the S&P 500 fell 44.87 points to 3,808.10. The Dow dropped 339.69 points to 32,930.08. The Nasdaq slid 153.52 points to 10,305.24.

Small company stocks also lost ground. The Russell 2000 index fell 19.35 points, or 1.1%, to 1,753.19.

MARKET WATCH

Australian shares look set to open little changed despite declines on Wall Street after strong jobs data pointed to further interest rate hikes.

The S&P/ASX 200 will open flat, according to futures action. The Australian benchmark is on track for a winning week after two days of gains reversed a sharp loss on the first session of 2023.

The S&P 500 fell 44.87 points to 3,808.10. The Dow dropped 339.69 points to 32,930.08. The Nasdaq slid 153.52 points to 10,305.24.

The S&P 500 fell 1.2%, clawing back all of its gains from a day earlier. The benchmark index is on pace for its fifth straight weekly loss. The Dow Jones Industrial Average fell 1% and the Nasdaq composite lost 1.5%.

EUR/USD was down 0.75% to 1.05, while USD/JPY rose 0.58% to 133.3
Overnight, the dollar unwound much of Wednesday night’s strong advance.
Oil rose for the first time in three sessions.
Copper broke a four-session losing run.
Surging Chinese Covid cases weighed on iron ore.
Gold backed off a seven-month high

 

[bigdog]

Wall Street rallies on rate hopes, notches gain for the week

Wall Street rallied amid hopes inflation may continue to cool and the Federal Reserve may ease up on its interest rate hikes following some mixed readings on the U.S. economy.

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Wall Street rallies on rate hopes, notches gain for the week​

By STAN CHOE and ALEX VEIGA

Stocks rallied after a shaky start and closed with broad gains Friday as some mixed readings on the U.S. economy stoked hope on Wall Street that inflation may keep cooling and the Federal Reserve may ease up on its interest rate hikes.

The S&P 500 rose 2.3%, marking its first winning week in the last five. The Dow Jones Industrial Average gained 2.1% and the Nasdaq composite added 2.6%. Small-company stocks also rose, lifting the Russell 2000 index 2.3% higher.

Markets worldwide got an initial jolt from the U.S. jobs report. On the upside for them, it showed workers’ wage gains are slowing, which could mean easing pressure on the nation’s high inflation. On the downside, it also showed hiring across the job market may still be too strong for the Fed’s liking, even after its fusillade of rate hikes last year.

Analysts warned trading may remain turbulent in the coming hours and weeks as investors keep trying to handicap whether the economy can avoid a recession. Much of the trading is based entirely on expectations for what the Fed will do with rates: High rates slow the economy by design, hoping to grind down inflation, while also threatening to cause a recession and dragging down prices for all kinds of investments.

Perhaps the clearest action for investors was in the bond market, where the yield on the two-year Treasury dropped to 4.28% from 4.48% just before the release of the data on the U.S. labor market.

That yield tends to track expectations for Fed action, and more investors are betting the central bank will dial down the size of its next rate hike following Friday’s data.

Key for them was the reading showing wages for workers across the country rose 4.6% in December from a year earlier. It’s the smallest raise for workers since two summers ago, and it came despite economists’ expectations for an acceleration.

While weaker raises hurt workers, particularly when they’re still not keeping up with inflation, economists say they could keep the economy out of a vicious cycle where big gains in pay push employers to raise prices for their own products, leading to even higher inflation. It’s something the Federal Reserve has talked about preventing, part of the reason why it’s been hiking interest rates at economy-shaking speed.

“As long as wage gains are coasting to a sustainable altitude, the Fed might continue to throttle back its rate hikes,” said Brian Jacobsen, senior investment strategist at Allspring Global Investments.

A separate report also showed that activity in U.S. services industries surprisingly contracted last month, the first time that’s happened since 2020. Analysts said that’s likely due in part to the rate hikes already pushed through by the Fed, and the weakness could also reduce pressure on the nation’s inflation.

That report helped steady the stock market following a shaky morning and sent it ripping higher again. After opening the day with an initial pop of 1.2%, the S&P 500 lost almost all of it within minutes as Wall Street struggled with how to interpret the U.S. jobs report and what it means for the Fed and rates.

The Fed has pulled its key overnight rate up to a range of 4.25% to 4.50% after it began last year at virtually zero.

With inflation showing some signs of cooling in recent months, the Fed last month stepped down the size of its rate increase to 0.50 percentage points from four straight hikes of 0.75 points. Traders are largely betting on the Fed to move to the more traditional hike of 0.25 points at its meeting next month.

Regardless of the size of rate increases the Fed elects to go with at the next couple of policymaking committee meetings, Wall Street is expecting the central bank will hit the pause button on rate hikes after March, said Sam Stovall, chief investment strategist at CFRA.

“Our belief is that they will start to cut interest rates in December 2023, even though they currently say they’re not looking to cut rates this year,” Stovall said. “The weakness in the economic data will tell them that they should and the decline in the inflation data will tell them that they can.”

Past rate hikes have already meant big pain for areas of the economy that do best when rates are low, such as housing.

In coming weeks, companies across industries will show how widespread the damage is when they report how much profit they made during the last three months of 2022.

If companies across the S&P 500 report a drop in overall earnings per share, as some analysts suspect, it would be the first decline since the summer of 2020.

On Friday, retailer Costco Wholesale jumped 7.3% for one of the biggest gains in the S&P 500 after it reported stronger sales for December.

The market’s gains were widespread Friday, with about 95% of the stocks in the benchmark S&P 500 index closing higher. Technology companies powered much of the rally. Chipmaker Nvidia rose 4.2%.

The S&P 500 closed 86.98 points higher at 3,895.08. The Dow added 700.53 points to finish at 33,630.61, while the tech-heavy Nasdaq rose 264.05 points to 10,569.29. The Russell 2000 added 39.61 points to close at 1,792.80.