NYSE Dow Jones finished today at:

[bigdog]

Stock market today: Asia shares gain, tracking Wall St rally

Shares are higher in Asia after Wall Street rallied to its best day since January. But gains in Asian markets were more modest as traders awaited a decision by the Bank of Japan. In its first policy meeting since Kazuo Ueda took the helm, the BOJ kept its ultra-lax policy unchanged. Japan...

apnews.com

Stock market today: Meta’s surge fuels big Wall Street rally​

By STAN CHOE

NEW YORK (AP) — Wall Street rallied to its best day since January after Meta Platforms on Thursday became the latest Big Tech company to blow past profit expectations and reports painted a mixed picture of the U.S. economy.

The S&P 500 jumped 2% to erase all its losses from what had been a tough week so far. The Dow Jones Industrial Average climbed 524 points, or 1.6%, while the Nasdaq composite led the market with a 2.4% gain.

Facebook’s parent company did some of the heaviest lifting, and it jumped 13.9%. Not only did Meta beat analysts’ estimates for profit during the first three months of the year, it also gave a forecast for revenue that topped expectations.

It joined Microsoft and Alphabet, which reported better-than-expected results earlier in the week, and Amazon followed suit after trading closed for the day. They’re among the most influential stocks on Wall Street indexes because they’re some of the biggest.

The majority of companies have been beating forecasts so far this earnings reporting season. Hasbro climbed 14.6%, and Comcast rose 10.3% after they also topped Wall Street’s estimates. But expectations were broadly low coming into this reporting season because of still-high inflation, much higher interest rates and a slowing economy.

A report on Thursday gave the first indication of just how much the U.S. economy is slowing: down to an estimated 1.1% growth at an annual rate during the first three months of 2023 from 2.6% at the end of last year. That was worse than expected, but the economy may be in better shape than it looks.

Underneath the surface, the report showed strength at the economy’s core, with growth in spending by consumers and other areas accelerating. Much of the weakness was related to businesses thinning out inventories. Also within the data, though, was a measure of inflation that the Fed likes to use, which came in hotter than hoped.

A separate report showed that fewer workers applied for unemployment benefits last week, raising hope that the job market may remain resilient as other areas slow.

“In our view, pulled all together, the conflicting data signals to us that we are in the ‘bend, not break’ phase of the cycle” for the economy, said Alexandra Wilson-Elizondo, co-head of portfolio management for multi asset solutions at Goldman Sachs Asset Management.

As a whole, investors took the data to mean the Federal Reserve next week will see the economy is still strong enough to handle another hike to interest rates at its next meeting.

The Fed has been raising rates at a furious pace since early last year, up to the highest level since 2007 from its record low. It’s doing so in hopes of getting the nation’s high inflation under control, but high rates do that by slowing the entire economy and hurting prices for investments.

Treasury yields jumped immediately after the release of the economic reports as traders upped their forecasts for the Fed and rates.

The yield on the 10-year Treasury rose to 3.52% from 3.45% late Wednesday. It helps set rates for mortgages and other important loans.

The two-year yield, which moves more on expectations for the Fed, rose more aggressively. It climbed to 4.08% from 3.95%.

High rates have hit some areas of the economy particularly hard, including the housing and manufacturing industries. Banks have also come under pressure on fears that scared customers may suddenly yank all their deposits at once.

The hunt has been on for potential weak links, and Wall Street’s spotlight has been particularly harsh on First Republic Bank. Its stock has more than halved this week after it gave details about how much in deposits its customers pulled following the second- and third-largest U.S. bank failures in history last month.

Its stock steadied a bit Thursday, rising 8.8%.

The larger worry is that the banking industry’s struggles could lead to a pullback in lending across the economy. That in turn could tighten the brakes even further, acting almost like another hike to interest rates.

That has many investors preparing for a possible recession this year, which could mean further hits to corporate profits. It’s also why investors have been paying just as much, if not more, attention to what companies say about upcoming trends as to what they actually did in the past three months.

Caterpillar, considered a bellwether for the global economy, slipped 0.9% despite reporting stronger profit and revenue for the latest quarter than expected. Analysts pointed to concerns that its profitability may have maxed out. It also benefited from a bigger-than-expected buildup in dealer inventories.

Crocs tumbled 15.9% despite reporting stronger profit and revenue for its latest quarter than expected. The footwear company gave financial forecasts for the current quarter that fell short of some analysts’ expectations.

All told, the S&P 500 rose 79.36 points to 4,135.35. The Dow gained 524.29 to 33,826.16, and the Nasdaq climbed 287.89 to 12,142.24.

In markets overseas, stock indexes were mixed in Europe and modestly higher across much of Asia.

Japan’s Nikkei 225 rose 0.1% as the Bank of Japan began a two-day monetary policy meeting under its new governor, Kazuo Ueda. No immediate change is expected to the nation’s super-easy monetary policy.

ASX 200 expected to jump​

The Australian share market looks set to end the week in a positive fashion following a stunning night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 55 points or 0.75% higher this morning.

Wall Street rallied to its best day since January after Meta Platforms on Thursday became the latest Big Tech company to blow past profit expectations and reports painted a mixed picture of the U.S. economy.

The S&P 500 jumped 2% to erase all its losses from what had been a tough week so far. The Dow Jones Industrial Average climbed 524 points, or 1.6%, while the Nasdaq composite led the market with a 2.4% gain.

All told, the S&P 500 rose 79.36 points to 4,135.35. The Dow gained 524.29 to 33,826.16, and the Nasdaq climbed 287.89 to 12,142.24.


MARKET WATCH

 

[bigdog]

Stock market today: Wall Street rises to cap a winning April

Wall Street closed out a winning April with gains Friday as more companies say their profits at the start of the year weren’t as bad as expected. The S&P 500 rose 0.8% Friday. The Dow and the Nasdaq also rose. Exxon Mobil and Intel climbed after reporting better results for the latest quarter...

apnews.com

Stock market today: Wall Street rises to cap a winning April​

By STAN CHOE

NEW YORK (AP) — Wall Street closed out a winning April with gains Friday after more companies said their profits at the start of the year weren’t as bad as expected.

The S&P 500 rose 34.13, or 0.8%, to 4,169.48. Despite some sharp swings this week, it still clinched a second straight winning month. The Dow Jones Industrial Average climbed 272.00, or 0.8%, to 34,098.16, and the Nasdaq composite gained 84.35, or 0.7%, to 12,226.58.

Exxon Mobil did some of the market’s heavier lifting after it rose 1.3%. It reported stronger profit and revenue for the latest quarter than forecast.

Intel gained 4% after reporting a milder loss than expected and stronger revenue for the latest quarter. Mondelez International, the food giant behind Oreo and Ritz, rose 3.9% after topping Wall Street’s estimates. It also raised its forecast for revenue and earnings over the full year.

They helped to offset a 4% drop for Amazon, which weighed heavily on the market despite reporting stronger profit and revenue for the latest quarter than expected. Analysts pointed to a slowdown in revenue growth at its AWS cloud computing business.

Snap tumbled 17% after its revenue for the latest quarter fell short of forecasts. Pinterest also fell sharply, down 15.7%, despite reporting stronger results than expected. Analysts pointed to its growth forecast for the current quarter, which looked more tepid than some expected.

Wall Street has focused heavily on what CEOs are saying about their upcoming trends given how much uncertainty is ahead about where the economy and interest rates are heading. The economy is slowing under the weight of much higher interest rates meant to get high inflation under control.

The majority of companies so far this reporting season have beaten expectations, highlighted by Big Tech behemoths this past week like Microsoft, Alphabet and Meta Platforms. They have an outsized effect on market indexes because of their massive size.

But the bar broadly was set considerably low for the first three months of the year. Wall Street is worried that continued weakness could lead to a third straight drop in earnings for S&P 500 companies in the second quarter of the year.

Recent economic reports have kept expectations in place on Wall Street for the Federal Reserve to raise interest rates again at its next meeting next week. Traders are also betting on a small possibility the Fed may raise rates again in June.

A report on Friday said the inflation measure that the Fed prefers to use came in close to expectations for March, but it remains well above the target.

Compensation for workers also rose more during the first three months of the year than economists expected. While that’s welcome news for workers trying to keep up with still-rising prices at registers, the Fed fears that could help make high inflation more entrenched.

“Bottom line, inflation is still above target, and the Fed is poised to raise interest rates again next week — and leave them at high levels for quite a while,” said Mike Loewengart, head of model portfolio construction at Morgan Stanley Global Investment Office.

High rates combat inflation by slowing the entire economy and hurting investment prices. That has many investors preparing for a possible recession to hit sometime this year.

The Fed has raised its key overnight interest rate to its highest level since 2007, up from its record low, following a barrage of hikes since early last year. Together, they’ve already slowed the economy’s growth down to an estimated 1.1% annual rate at the start of this year.

They’ve also caused cracks in the banking system, with the second- and third-largest U.S. bank failures in history rocking global markets last month. Investors are hunting for other weak links, and the spotlight has been particularly harsh on First Republic Bank.

Its stock roughly halved on Tuesday after it gave details about how much in deposits its customers have yanked. First Republic tumbled again Friday and is down 97.1% for the year so far.

The Federal Reserve released a report Friday blaming the failure of Silicon Valley Bank on a combination of poor bank management, weakened regulations and lax government supervision. That bank’s collapse is what sparked the industry’s turmoil last month.

In the bond market, the yield on the 10-year Treasury fell to 3.43% from 3.52% late Thursday. It helps set rates for mortgages and other important loans. The two-year yield, which more closely tracks expectations for the Fed, fell to 4.02% from 4.08%.

In markets abroad, stock indexes were mixed in Europe and mostly higher across Asia.

Japan’s Nikkei 225 stock index jumped 1.4%, and the Japanese yen fell against the dollar. In its first policy meeting under its new governor, Kazuo Ueda, the Bank of Japan kept its key policy rate at negative 0.1% even as inflation in the country continues to overshoot its target.

 

[Sean K]

The 500 has been going sideways for a year now. Doesn't look too apocalyptic at the moment to me. But the bogeyman debt-inflation-interest rates-recession still hangs over the markets. Some of the commentators I follow still calling for another leg down though...

 

[farmerge]

The 500 has been going sideways for a year now. Doesn't look too apocalyptic at the moment to me. But the bogeyman debt-inflation-interest rates-recession still hangs over the markets. Some of the commentators I follow still calling for another leg down though...

View attachment 156399

Morning Mr K but the DOW finished a healthy green again last night/this morning. Will this bode well for the follow the leader our ASX on Monday.

 

[eskys]

What commentators think and say, and what the market is doing are two separate things.

Was watching a movie not so long ago, The Whole Truth, a drama/thriller. I was thinking...I think he did it, she did it, and I kept changing my mind all the time. How many of us do the same, going by what we hear and thrown at us.

This market is like a drama thriller. Do we get it right most of the time? If so, we are on the winner streak. 2 red sectors last night, Con Discretionary and Utilities

 

[divs4ever]

What commentators think and say, and what the market is doing are two separate things.

Was watching a movie not so long ago, The Whole Truth, a drama/thriller. I was thinking...I think he did it, she did it, and I kept changing my mind all the time. How many of us do the same, going by what we hear and thrown at us.

This market is like a drama thriller. Do we get it right most of the time? If so, we are on the winner streak. 2 red sectors last night, Con Discretionary and Utilities

ummm ! the two red sectors were consumer discretionary and utilities , think about it , is that a signal in itself

weakness expected in the power/gas/transport grid and the major part of the US economy is consumer spending

Penn & Teller - Smoking/Sleight of Hand Trick

Looks simple, doesn't it? Two of my favourite people. Such finesse. Such elegance. This clip is taken from Penn & Teller: Fool Us, season 2 episode 10. Make sure to scroll to the comments to discover the wondrous mysteries of: 1. The disappearing lemon! 2. The fake thumb! 3. The dangers of...

yewtu.be

This BLIND Magician FOOLED Penn and Teller Penn and Teller Fool Us Richard Turner

#PennandTellerFoolUs This BLIND Magician FOOLED Penn and Teller Penn and Teller Fool Us Richard Turner https://youtu.be/8mdfFAyxG2Q https://youtu.be/x0rVufZT3jM https://youtu.be/x0rVufZT3jM https://youtu.be/r9XJCzwVVNQ https://youtu.be/lVoEQEIhq7M https://youtu.be/d4tksgwpQDA...

yewtu.be

 

[farmerge]

What commentators think and say, and what the market is doing are two separate things.

Was watching a movie not so long ago, The Whole Truth, a drama/thriller. I was thinking...I think he did it, she did it, and I kept changing my mind all the time. How many of us do the same, going by what we hear and thrown at us.

This market is like a drama thriller. Do we get it right most of the time? If so, we are on the winner streak. 2 red sectors last night, Con Discretionary and Utilities

Ah but eskys i have that very wise sage "the bloke in the mirror' who when his mood allows him to advises me with the gospel.
That said his recommendation for the past 5 months in the comp must be forgotten.

 

[bigdog]

ASX 200 expected to rise again​

The Australian share market looks set to rise on Monday thanks to a strong finish to last week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 54 points or 0.75% higher this morning.

Wall Street closed out a winning April with gains Friday after more companies said their profits at the start of the year weren’t as bad as expected.

The S&P 500 rose 34.13, or 0.8%, to 4,169.48. Despite some sharp swings this week, it still clinched a second straight winning month. The Dow Jones Industrial Average climbed 272.00, or 0.8%, to 34,098.16, and the Nasdaq composite gained 84.35, or 0.7%, to 12,226.58.

MARKET WATCH

 

[Dona Ferentes]

Realising the S&P500 is different to the DJIA, it does seem that this thread has become the de facto US commentary one.

Some commentators bewail the weight and limitations in the ASX200 (banks, resources, CSL) but other indexes are equally distorted. In the USA it's tech.

 

[Belli]

Realising the S&P500 is different to the DJIA, it does seem that this thread has become the de facto US commentary one.

Some commentators bewail the weight and limitations in the ASX200 (banks, resources, CSL) but other indexes are equally distorted. In the USA it's tech.

Interesting you should say that. VGS has 69% exposure to the US market and yet its top 10 holdings (18% of holdings) are a high exposure to tech as per the attachment:

For STW as a proxy for the ASX 200 the top 10 accounts for 46% of total assets.

 

[bigdog]

In markets abroad, many exchanges were closed in observance of holidays.

FTSE, CAC40, SSE, TSEC, KOSPI HANG SENG & STI all closed for holiday on Monday

Stock market today: Stocks stay steady after bank failure

Stocks drifted on Wall Street after the latest historic U.S. banking failure made few waves in markets. The S&P 500 was virtually unchanged Monday after regulators seized First Republic Bank and sold off most of it in hopes of preventing more turmoil in the industry. Treasury yields rose amid...

apnews.com

Stock market today: Stocks stay steady after bank failure​

By STAN CHOE

NEW YORK (AP) — The latest historic U.S. banking failure made few waves in markets, and stocks drifted Monday as Wall Street braces for what it hopes will be the last hike to interest rates for a long time.

The S&P 500 was virtually unchanged after regulators seized First Republic Bank and sold off most of it in hopes of preventing more turmoil in the industry. It dipped 1.61, or less than 0.1%, to 4,167.87. The Dow Jones Industrial Average slipped 46.46, or 0.1%, to 34,051.70, and the Nasdaq composite fell 13.99, or 0.1%, to 12,212.60.

First Republic has been in the spotlight for nearly two months on worries it could be next to topple following March’s failures of Silicon Valley Bank and Signature Bank. The worry was that runs on smaller- and mid-sized banks could take down the economy, like the financial industry’s woes during the 2008 crisis did.

But analysts and economists have said they see big differences between then and now, including how the biggest U.S. banks are feeling less pressure this time around. Plus, several banks under scrutiny for weakness recently have said their deposit levels have strengthened since late March

Analysts said the difference between the stock market’s reactions to them and First Republic Bank, which plunged 75% last week, indicates investors may see it as an isolated event rather than a problem with the deeper system.

Shares of JPMorgan Chase, which is buying much of First Republic’s assets, rose 2.1%. It’s becoming even bigger following the deal.

Still, many other questions continue to hang over Wall Street that could shake things up. They include worries about corporate profits and the U.S. government’s latest squabble over the country’s debt limit.

Above all is what the Federal Reserve will do with interest rates. At its next meeting, which concludes Wednesday, most traders expect the Fed to raise short-term rate by another quarter of a percentage point, up to a range of 5 to 5.25% from virtually zero early last year.

The hope is that may be the final increase for a while, which would give the economy and financial markets more breathing room.

The Fed has been raising rates sharply in hopes of getting high inflation under control. But high rates are a notoriously blunt tool that slow the entire economy, raise the risk of a recession and hurt prices for investments.

If banks limit their lending following their industry’s recent struggles, even if there are no more failures, that could act like rate increases on their own. Many investors are preparing for a recession to hit later this year

A report on Monday from the Institute for Supply Management said manufacturing activity shrank again in April, though not as badly as most economists expected. Other reports this week will give the latest updates on U.S. services industries and hiring across the economy.

One lever that’s propped up Wall Street in recent weeks has been a stream of companies reporting better profits for the first three months of the year than expected.

Through last week, with just over half of S&P 500 companies reporting, nearly four in five had reported higher earnings than forecast, according to FactSet. That has companies in the index on track to report a drop of 3.7% from a year earlier.

That would mark a second straight quarter of falling earnings, something that Wall Street calls a profit recession. But it would not be as bad as the 6.7% drop that analysts forecasted a month ago.

ON Semiconductor rose 8.9% after reporting stronger profit and revenue for the latest quarter than expected. Norwegian Cruise Line climbed 8.9% after likewise topping expectations.

Big Tech companies have largely reported better profits than expected, which has helped stabilize the market because their immense size gives them outsized sway on indexes. Apple will follow with its own report this week.

Those huge companies are a big reason why the S&P 500 has risen 8.6% this year, but it may be a worrying sign the rest of the market hasn’t kept up, according to strategists at Goldman Sachs. When market breadth is this narrow, the stock market has historically had tough returns in the near term.

Countering that, though, is also how well stocks tend to do once the Federal Reserve stops hiking rates: an average return of 8% over the ensuing three months, going back to 1984. Ultimately, the biggest risk on the downside for the market is whether the economy falls into a recession, the strategists led by David Kostin said.

In the bond market, Treasury yields rose as expectations firmed on Wall Street for at least one more rate hike. The yield on the 10-year Treasury rose to 3.58% from 3.43% late Friday. It helps set rates for mortgages and other important loans.

The yield on the two-year Treasury, which moves more on expectations for Fed action, rose to 4.13% from 4.02%.

In markets abroad, many exchanges were closed in observance of holidays.

ASX 200 expected to edge lower​

The Australian share market looks set for a subdued session after a mixed start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 5 points or 0.1% lower.

The latest historic U.S. banking failure made few waves in markets, and stocks drifted Monday as Wall Street braces for what it hopes will be the last hike to interest rates for a long time.

The S&P 500 was virtually unchanged after regulators seized First Republic Bank and sold off most of it in hopes of preventing more turmoil in the industry. It dipped 1.61, or less than 0.1%, to 4,167.87. The Dow Jones Industrial Average slipped 46.46, or 0.1%, to 34,051.70, and the Nasdaq composite fell 13.99, or 0.1%, to 12,212.60.

MARKET WATCH

 

[bigdog]

Stock market today: Asian markets track Wall Street decline

Asian shares have declined, tracking losses on Wall Street as shares of beleaguered banks tumbled again and worries about the economy deepened. U.S. futures edged higher while oil prices were little changed. Markets in Japan and China were closed Wednesday for holidays. Investors are waiting for...

apnews.com

Stock market today: Wall Street drops as banks tumble again​

By STAN CHOE

NEW YORK (AP) — Stocks slumped Tuesday after shares of beleaguered banks tumbled again and worries worsened about the economy.

Rising fear sent yields sinking in the bond market, while Wall Street waited for the Federal Reserve’s latest move on interest rates and Washington edges closer to what would be a catastrophic default on U.S. government debt.

The S&P fell 1.2% after paring a steeper loss. The Dow Jones Industrial Average dropped 367 points, or 1.1%, after earlier being down as many as 615 points. The Nasdaq composite sank 1.1%.

Some of the sharpest drops came from smaller- and mid-sized banks, which have been under heavy scrutiny as the banking system shows cracks under the weight of much higher interest rates. PacWest Bancorp dropped 27.8%, Western Alliance Bancorp fell 15.4% and Comerica sank 12.4%.

Three of the four largest U.S. bank failures in history have come since March, and investors have been on the hunt for what could be next to topple or suffer a debilitating exodus by customers.

Regulators seized First Republic Bank at the start of this week and sold most of it to JPMorgan Chase, which had raised hopes that the turmoil could ease.

Also pressuring the market was a report showing U.S. employers advertised the fewest job openings in nearly two years during March. The job market has been one of the main pillars supporting a slowing economy, and a drop-off there would likely mean a recession.

Such pressure is raising the stakes for the Federal Reserve, which began a two-day meeting on interest rates. The widespread assumption is that it will raise rates on Wednesday by another quarter of a percentage point. The widespread hope is that it will be the last increase for a long time.

The Fed has jacked up rates at a furious pace from early last year, up to a range of 4.75% to 5% from virtually zero. It’s trying to beat down high inflation, but high rates do that by taking a blunt hammer to the economy.

High rates have already hit the housing market sharply and hurt the banking system. Many investors are preparing for a recession to hit later this year.

That has many traders betting the Fed will halt its rate hikes and perhaps even cut them later this year. That would offer the market more breathing room, and stocks have historically done well in the months immediately following the last rate hike.

Still, some investors anticipate the Fed on Wednesday may not offer encouraging signals that rate hikes are over, let alone open the door to rate cuts.

“Admittedly this is a 20:20 hindsight view and the Fed’s job is as tough as it has ever been, but while it would be nice to be finished with the Fed hiking cycle, too much caution in the past, among other factors, caused the current inflation overshoot and there remains a distinct possibility that it could accelerate again, especially given all the uncertain factors in the world today,” said John Vail, chief global strategist at Nikko Asset Management.

Australia’s central bank surprised markets Tuesday by raising rates by a quarter of a percentage point and saying “some further tightening” may be needed to get inflation fully under control. It pointed to prices still rising too quickly for services, an area that the Fed has also been focused on.

Adding worries on top of that is the latest political spat over the nation’s debt limit. Treasury Secretary Janet Yellen said late Monday that the U.S. government could default on its debt as early as June 1 unless a divided Congress allows it to borrow more. That’s an earlier “X-date” than previously thought.

A default could be disastrous because much of the financial system is built on the assumption that U.S. government debt is the safest investment available. Most of Wall Street believes Congress will come to a deal before the deadline, as it has many times before, because the alternative would be so dire.

While Yellen made the June 1 deadline sound like a flexible one, Wall Street will likely treat it with more definitiveness. Any portfolio manager instructed to avoid risks of getting payments delayed will be steering clear of June 1 bills, according to strategists at UBS.

With only weeks to go before June 1, Congress could be forced to agree to an extension of just a few months, rather than a long-term deal.

“There could be a few debt ceiling deadlines prior to the 2024 elections,” the UBS strategists led by Michael Cloherty wrote in a report.

In the bond market, the yield on the 10-year Treasury slumped to 3.42% from 3.57% late Monday.

Some of the sharpest action in the stock market was among companies reporting results for the first three months of the year, as earnings season stays in high gear. It’s been mostly better than feared.

Arista Networks fell 15.7% despite reporting better profit and revenue than expected. Analysts said investors may have been disappointed it didn’t raise its forecast for upcoming results even more than it did.

On the winning side was Molson Coors Beverage, which reported adjusted earnings that more than doubled analysts’ expectations. It bubbled up 7.7%.

All told, the S&P 500 lost 48.29 points to 4,119.58. The Dow dropped 367.17 to 33,684.53, and the Nasdaq fell 132.09 to 12,080.51.

ASX 200 expected to tumble again​

The Australian share market looks set to fall again on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 41 points or 0.6% lower this morning.

NEW YORK Stocks slumped Tuesday after shares of beleaguered banks tumbled again and worries worsened about the economy.

Rising fear sent yields sinking in the bond market, while Wall Street waited for the Federal Reserve’s latest move on interest rates and Washington edges closer to what would be a catastrophic default on U.S. government debt.

The S&P fell 1.2% after paring a steeper loss. The Dow Jones Industrial Average dropped 367 points, or 1.1%, after earlier being down as many as 615 points. The Nasdaq composite sank 1.1%.

MARKET WATCH

 

[bigdog]

Stock market today: Asian markets mixed after US rate hike

Asian stock markets are mixed after the Federal Reserve raised its benchmark lending rate again to cool inflation and said it isn’t sure what may come next. Shanghai and Hong Kong advanced while Seoul and Sydney declined. Japanese markets were closed for a holiday. Wall Street’s benchmark S&P...

apnews.com

Stock market today: Markets slip after latest Fed rate hike​

By STAN CHOE

NEW YORK (AP) — Stocks dipped Wednesday after the Federal Reserve announced its latest hike to interest rates but said it’s not sure what may come next.

The S&P 500 fell 28.83, or 0.7%, to 4,090.75. The Dow Jones Industrial Average lost 270.29, or 0.8%, to 33,414.24, and the Nasdaq composite slipped 55.18, or 0.5%, to 12,025.33.

The Fed’s move to raise its benchmark interest rate by another quarter of a percentage point was widely expected, and it’s supposed to slow the economy further in hopes of getting inflation under control.

The hope on Wall Street is that this is the final increase following the Fed’s fastest flurry in decades. The central bank gave a nod toward the possibility in its statement, where it dropped a reference saying it “anticipates that some additional policy firming may be appropriate.”

“That’s a meaningful change,” Fed Chair Jerome Powell said.

But the Fed stopped short of declaring the end to rate hikes, which have already caused cracks in the U.S. banking system, sent stock prices well below their record heights and pushed many investors to expect a recession later this year.

Powell also said that even though traders are hoping for cuts to rates later this year, which can act like steroids for markets, he doesn’t expect them to happen that quickly. The Fed’s next meeting is next month.

So instead of sounding like a “hawk,” which is what Wall Street calls policy makers who want higher interest rates, or a “dove” who favors lower interest rates, Powell may have come off as something in between.

“He really seemed to jump from hawkish straight to not dovish, but chicken as far as: They don’t know what’s going to happen,” said Brian Jacobsen, chief economist at Annex Wealth Management. “They want to retain the option to cut, they want to retain the option to hike and they want to retain the option to hold. They want to have everything available to them because they really have no idea how things are going to play out.”

Also potentially putting a downer on the market, Jacobsen said, was Powell’s repeated references to a survey soon to be released, one that will show how much loan officers at banks say they’re tightening lending standards.

The banking system has felt some of the fiercest pressure from all the Fed’s fate hikes, and three of the four largest U.S. bank failures in history have come within the last two months. The worry is that the industry’s turmoil could push banks to pull back on their lending. That could act like rate hikes on their own, further smothering the economy.

The Fed is in a tricky position, though, because inflation remains well above the Fed’s 2% target, and it’s still hurting households trying to keep up. Lower-income households have been squeezed particularly hard.

Powell said he’s still hopeful the economy can avoid a recession, but he acknowledged that “we always have to balance the risk of not doing enough and not getting inflation under control against maybe the risk of slowing economic activity too much.”

Following the collapses of Silicon Valley Bank, Signature Bank and First Republic Bank, investors have continued to hunt for other potential weak links in the banking system. The harshest scrutiny has been on small- and medium-sized banks that could see a sudden exodus of customers.

Shares of PacWest Bancorp, Western Alliance Bancorp and other rivals fell again following the Fed’s decision, a day after seeing trading of their stocks get halted amid steep slides. PacWest sank 2% after being up earlier in the day. Western Alliance fell 4.4%.

On the opposite end was Eli Lilly, which rose 6.7% after reporting encouraging results from a study of a treatment for Alzheimer’s disease. Kraft Heinz rallied 2% after beating analysts’ forecasts for profit and revenue.

The majority of companies have been turning in better profits than feared so far. But expectations coming into this reporting season were low given the effects of much higher interest rates and a slowing economy. S&P 500 companies are still likely on the way to reporting a second straight quarter of profit drops.

That’s why much attention has been on what companies say about upcoming trends.

Advanced Micro Devices fell 9.2% despite reporting stronger profit and revenue than expected. It gave a forecast for revenue in the current quarter that fell short of some analysts’ expectations.

Reports on Wednesday offered some potentially encouraging data on the U.S. economy. One suggested the job market may be in better shape than expected. ADP said hiring among private employers accelerated much more last month than forecast. It could raise expectations for the federal government’s more comprehensive report on hiring, which will arrive Friday.

The job market has been one of the strongest pillars supporting the economy recently, though some mixed data recently has suggested it may be softening. On one hand, the Fed sees that as helpful in bringing inflation closer to its goal. On the other, though, a drop-off would sharply raise the risk of a recession.

In the bond market, the yield on the 10-year Treasury fell to 3.36% from 3.44% late Tuesday. It helps set rates for mortgages and other important loans.

The two-year yield, which moves more on expectations for the Fed, fell to 3.88% from 3.99%.

ASX 200 expected to fall​

The Australian share market is expected to have another tough session on Thursday after a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 35 points or 0.5% lower this morning.

NYSE Stocks dipped Wednesday after the Federal Reserve announced its latest hike to interest rates but said it’s not sure what may come next.

The S&P 500 fell 28.83, or 0.7%, to 4,090.75. The Dow Jones Industrial Average lost 270.29, or 0.8%, to 33,414.24, and the Nasdaq composite slipped 55.18, or 0.5%, to 12,025.33.

MARKET WATCH

 

[bigdog]

Stock market today: Asia mixed after Wall St sinks

Asian stock markets are mixed after Wall Street sank on worries about the health of U.S. banks that are under pressure from interest rate hikes. Shanghai declined while Hong Kong and Sydney advanced. Markets in Japan and South Korea were closed for holidays. Oil prices advanced. Wall Street’s...

apnews.com

Stock market today: Wall Street sinks as bank fears flare​

By STAN CHOE

NEW YORK (AP) — Stocks sank on Wall Street Thursday as worries cranked higher about a cracking U.S. banking system.

The S&P 500 fell 0.7% to add to its loss for the week so far. The Dow Jones Industrial Average dropped 286 points, or 0.9%, and is now down for the year, while the Nasdaq composite fell 0.5%.

The wildest action was in the financial industry, where shares of PacWest Bancorp tumbled 50.6%. It’s been under heavy scrutiny by investors recently following three of the four largest U.S. bank failures in history.

“The important thing to remember is banking is as much about confidence as it is about economics and accounting,” said George Bory, chief investment strategist for fixed income at Allspring Global Investments. “We’re in a period where confidence is very fragile, arguably damaged. Policy makers are trying to reestablish confidence in the system, and you can just see what’s happening in share prices: The confidence hasn’t been restored yet.”

Wall Street has been hunting for other possible weak links in the system, which could see a swift exodus of customer deposits as the industry contends with much higher interest rates. PacWest said overnight that it’s considering its options and that several potential partners and investors have approached it. It also said that its core customer deposits have increased since the end of March.

Fear is running so high in the industry that shares of Western Alliance Bancorp plunged as much as 61% after a report from The Financial Times said the Phoenix-based bank was considering selling its business, among other options. But the company refuted the report, saying there “is not a single element of the article that is true.” Its stock pared its drop to a loss of 38.5%.

The wild movements came after Western Alliance tried to reassure investors late Wednesday with a statement saying its deposits are stable and that they increased from Monday to Tuesday.

First Horizon, meanwhile, dropped 33.2% after it and TD Bank Group agreed to call off their merger deal. TD told First Horizon it did not know when it could get regulatory approvals for the deal.

At the start of this week, regulators seized First Republic Bank and sold most of it to JPMorgan Chase, with hopes that could bolster confidence in the industry. Officials have stressed they see the banking system is sound and secure, but the worries aren’t leaving the market.

Banks are dealing with drastically different business conditions now that interest rates are no longer at record lows. The Federal Reserve on Wednesday announced its latest increase, which took its key overnight rate up to a range of 5% to 5.25% from virtually zero early last year.

The Fed has jacked up rates at the fastest pace in decades to knock down high inflation. But it does that by slowing the economy, raising the risk of a recession and hurting prices for investments. Many of the loans made and bonds bought by banks when rates were low are suddenly worth much less in today’s market.

The worry now is that even if no more banks topple, the industry’s turmoil could cause smaller and mid-sized banks to pull back on their lending. That in itself could act like rate hikes, which would further smother the economy. Many investors already believe a recession will hit later this year.

A report on Thursday showed that the number of U.S. workers filing for unemployment last week accelerated a bit more than expected. The job market has remained largely resilient, and it’s one of the main pillars still propping up the slowing economy. A more comprehensive report on Friday will give the latest monthly update on the overall job market.

With worries rising about the economy, the Fed indicated Wednesday that it may be done hiking interest rates for the moment. But the European Central Bank on Thursday pressed on. Its president, Christine Lagarde, said that it has “more ground to cover, and we are not pausing.” It did slow the pace of its hikes, raising rates by only a quarter of a percentage point.

Higher rates mean investors are getting paid higher yields for owning bonds, which in turn offers more protection for future shakiness in the market, Allspring’s Bory said. “Investing in fixed income today is actually kind of the best it’s been in one and a half decades,” he said.

Helping to support stocks despite all the worries has been a largely better-than-feared earnings reporting season. Companies in the S&P 500 are still on track to report a second straight quarter of profit drops, but the results have mostly been better than expected.

Ball gained 13.4% after the maker of aluminum cans and other packaging reporting stronger profit than expected.

Kenvue, the consumer health business spun off by Johnson & Johnson, soared 22.3% in its first trading following its initial public offering. Its brands include Band-Aids, Listerine and Tylenol.

All told, the S&P 500 fell 29.53 points to 4,061.22. The Dow dropped 286.50 to 33,127.74, and the Nasdaq fell 58.93 to 11,966.40.

ASX 200 expected to fall again​

The Australian share market looks set to end the week in the red following another poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 29 points or 0.4% lower this morning.

NEW YORK Stocks sank on Wall Street Thursday as worries cranked higher about a cracking U.S. banking system.

The S&P 500 fell 0.7% to add to its loss for the week so far. The Dow Jones Industrial Average dropped 286 points, or 0.9%, and is now down for the year, while the Nasdaq composite fell 0.5%.

All told, the S&P 500 fell 29.53 points to 4,061.22. The Dow dropped 286.50 to 33,127.74, and the Nasdaq fell 58.93 to 11,966.40.


MARKET WATCH

 

[bigdog]

Stock market today: Apple-juiced rally closes bruising week

Apple was at the head of a widespread rally on Wall Street after the stock market’s most influential company reported a better profit than expected. Stocks of beaten-down banks also leapt Friday to recover a smidgen of their sharp losses from a brutal week. The S&P 500 rose 1.8%. The Dow Jones...

apnews.com

Stock market today: Apple-juiced rally closes bruising week​

By STAN CHOE

NEW YORK (AP) — Apple was at the head of a widespread rally on Wall Street Friday after the market’s most influential company reported a better profit than expected. Stocks of beaten-down banks also leapt to recover a smidgen of their sharp losses from a brutal week.

The S&P 500 jumped 1.8%, though it still turned in a modest loss for the week that was its worst in nearly two months. The Dow Jones Industrial Average climbed 546 points, or 1.7%, while the Nasdaq composite rallied 2.2%.

Treasury yields jumped in the bond market after a report showed hiring accelerated across the economy by much more than expected last month. The U.S. government’s jobs report also showed workers won bigger pay raises in April than expected.

While that’s good news, particularly when many economists fear a recession may arrive this year, the data also raises worries inflation may stay high and push the Federal Reserve to keep interest rates higher. That in turn would keep the pressure up on an already slowing economy.

The data did little to narrow the extremely wide range of possibilities for the economy that investors are forecasting for the economy, from a painful recession to a soft landing, said Bill Northey, senior investment director at U.S. Bank Wealth Management.

“Today’s jobs report likely gave both the bulls and the bears something to anchor around,” he said.

High interest rates have already caused cracks in the U.S. banking system, and fears about what may be next to fall have rocked the industry. This week began with regulators seizing First Republic Bank, which became the third large U.S. bank failure to hit since March.

Investors have been hunting for the next possible weak link in the system and driving down stock prices for those seen at risk of a sudden exodus by customers. That’s even as banks protested that they were seeing deposit levels stabilize or strengthen. Several of the hardest hit recovered some of their steep losses Friday, adding to the ebullient mood.

PacWest Bancorp. soared 81.7%, though it still lost 43.3% for the week. Western Alliance Bancorp. jumped 49.2% to trim its loss for the week to 26.8%.

The worry is falling stock prices for banks could create a vicious cycle that causes customers to lose faith and pull their deposits, which then raises more fear for the system.

Apple didn’t rise as much as those banks Friday, but its moves pack a more potent punch. Apple is the most valuable stock on Wall Street, which gives its moves outsized weight on the S&P 500 and other indexes.

Its 4.7% gain made it the biggest force by far lifting S&P 500. The iPhone maker reported a drop in earnings and revenue, but the results nevertheless topped analysts’ muted expectations.

The story has been similar across the broader market for results during the first three months of the year. Analysts came into this earnings reporting season with low expectations given high interest rates and a slowing economy, but the majority of companies have done better than feared.

Live Nation Entertainment jumped 15% after reporting a more modest loss than analysts expected, while Cigna Group rose 7% after topping forecasts for profit and revenue.

On the losing end was Lyft, which slumped 19.3% after it gave a weaker financial forecast for the current quarter than Wall Street expected. It’s a contrast to competitor Uber, which rose solidly for the week following its earnings report.

In the bond market, yields leaped immediately after the jobs report as traders bet on it pushing the Fed to keep rates high for longer than earlier expected.

The Fed on Wednesday said that it wasn’t sure of its next move after raising its benchmark rate to a range of 5% to 5.25%, up from virtually zero early last year. It’s been raising rates at the fastest pace in decades to drive down inflation, but that works by slowing the economy and hurting investment prices.

Many traders expect the Fed to hold rates steady at its next meeting in June, which would be the first time that’s happened in more than a year. After that is where expectations diverge.

The Fed has been insistent that it sees inflation coming down slowly, which would mean rates would stay high for a while, if not rise further if inflation were to reaccelerate. Many traders, meanwhile, see the economy weakening so much that the Fed will have to cut rates later this year.

Adding to the uncertainty is what comes out of the U.S. banking industry’s turmoil. If it causes banks to pull back on their lending, that could act like rate increases that further smother the economy.

Friday’s jobs report offered encouraging and discouraging news, depending on one’s outlook.

The strong hiring numbers reaffirm that the job market is remaining resilient. It’s propping up the rest of the economy, which has already begun to slow under the weight of much higher interest rates.

But more concerning to pessimists was the 4.4% rise in wages for workers from a year earlier. The fear is too-strong wage increases could push companies to raise prices for their own goods and make other moves that create a vicious cycle that keeps inflation high. That in turn could pressure the Fed to keep rates higher for longer, which could cause more things to break beyond First Republic.

The yield on the 10-year Treasury rose to 3.43% from 3.38% late Thursday. It helps set rates for mortgages and other important loans.

All told, the S&P 500 rose 75.03 points to 4,136.25. The Dow gained 546.64 to 33,674.38, and the Nasdaq climbed 269.01 to 12,235.41.

 

[farmerge]

Stock market today: Apple-juiced rally closes bruising week

Apple was at the head of a widespread rally on Wall Street after the stock market’s most influential company reported a better profit than expected. Stocks of beaten-down banks also leapt Friday to recover a smidgen of their sharp losses from a brutal week. The S&P 500 rose 1.8%. The Dow Jones...

apnews.com

Stock market today: Apple-juiced rally closes bruising week​

By STAN CHOE

NEW YORK (AP) — Apple was at the head of a widespread rally on Wall Street Friday after the market’s most influential company reported a better profit than expected. Stocks of beaten-down banks also leapt to recover a smidgen of their sharp losses from a brutal week.

The S&P 500 jumped 1.8%, though it still turned in a modest loss for the week that was its worst in nearly two months. The Dow Jones Industrial Average climbed 546 points, or 1.7%, while the Nasdaq composite rallied 2.2%.

Treasury yields jumped in the bond market after a report showed hiring accelerated across the economy by much more than expected last month. The U.S. government’s jobs report also showed workers won bigger pay raises in April than expected.

While that’s good news, particularly when many economists fear a recession may arrive this year, the data also raises worries inflation may stay high and push the Federal Reserve to keep interest rates higher. That in turn would keep the pressure up on an already slowing economy.

The data did little to narrow the extremely wide range of possibilities for the economy that investors are forecasting for the economy, from a painful recession to a soft landing, said Bill Northey, senior investment director at U.S. Bank Wealth Management.

“Today’s jobs report likely gave both the bulls and the bears something to anchor around,” he said.

High interest rates have already caused cracks in the U.S. banking system, and fears about what may be next to fall have rocked the industry. This week began with regulators seizing First Republic Bank, which became the third large U.S. bank failure to hit since March.

Investors have been hunting for the next possible weak link in the system and driving down stock prices for those seen at risk of a sudden exodus by customers. That’s even as banks protested that they were seeing deposit levels stabilize or strengthen. Several of the hardest hit recovered some of their steep losses Friday, adding to the ebullient mood.

PacWest Bancorp. soared 81.7%, though it still lost 43.3% for the week. Western Alliance Bancorp. jumped 49.2% to trim its loss for the week to 26.8%.

The worry is falling stock prices for banks could create a vicious cycle that causes customers to lose faith and pull their deposits, which then raises more fear for the system.

Apple didn’t rise as much as those banks Friday, but its moves pack a more potent punch. Apple is the most valuable stock on Wall Street, which gives its moves outsized weight on the S&P 500 and other indexes.

Its 4.7% gain made it the biggest force by far lifting S&P 500. The iPhone maker reported a drop in earnings and revenue, but the results nevertheless topped analysts’ muted expectations.

The story has been similar across the broader market for results during the first three months of the year. Analysts came into this earnings reporting season with low expectations given high interest rates and a slowing economy, but the majority of companies have done better than feared.

Live Nation Entertainment jumped 15% after reporting a more modest loss than analysts expected, while Cigna Group rose 7% after topping forecasts for profit and revenue.

On the losing end was Lyft, which slumped 19.3% after it gave a weaker financial forecast for the current quarter than Wall Street expected. It’s a contrast to competitor Uber, which rose solidly for the week following its earnings report.

In the bond market, yields leaped immediately after the jobs report as traders bet on it pushing the Fed to keep rates high for longer than earlier expected.

The Fed on Wednesday said that it wasn’t sure of its next move after raising its benchmark rate to a range of 5% to 5.25%, up from virtually zero early last year. It’s been raising rates at the fastest pace in decades to drive down inflation, but that works by slowing the economy and hurting investment prices.

Many traders expect the Fed to hold rates steady at its next meeting in June, which would be the first time that’s happened in more than a year. After that is where expectations diverge.

The Fed has been insistent that it sees inflation coming down slowly, which would mean rates would stay high for a while, if not rise further if inflation were to reaccelerate. Many traders, meanwhile, see the economy weakening so much that the Fed will have to cut rates later this year.

Adding to the uncertainty is what comes out of the U.S. banking industry’s turmoil. If it causes banks to pull back on their lending, that could act like rate increases that further smother the economy.

Friday’s jobs report offered encouraging and discouraging news, depending on one’s outlook.

The strong hiring numbers reaffirm that the job market is remaining resilient. It’s propping up the rest of the economy, which has already begun to slow under the weight of much higher interest rates.

But more concerning to pessimists was the 4.4% rise in wages for workers from a year earlier. The fear is too-strong wage increases could push companies to raise prices for their own goods and make other moves that create a vicious cycle that keeps inflation high. That in turn could pressure the Fed to keep rates higher for longer, which could cause more things to break beyond First Republic.

The yield on the 10-year Treasury rose to 3.43% from 3.38% late Thursday. It helps set rates for mortgages and other important loans.

All told, the S&P 500 rose 75.03 points to 4,136.25. The Dow gained 546.64 to 33,674.38, and the Nasdaq climbed 269.01 to 12,235.41.

View attachment 156688

View attachment 156689


View attachment 156690

A strong finish for the week from Wally Street last night and morning. Will this bide well for the minnow ASX

 

[divs4ever]

A strong finish for the week from Wally Street last night and morning. Will this bide well for the minnow ASX

depends on who the FDIC seizes over the weekend .. three possible targets

 

[bigdog]

ASX 200 expected to rise again​

The Australian share market is expected to have a strong start thanks to a stellar finish to last week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 64 points or 0.9% higher this morning.

On Friday, the S&P 500 jumped 1.8%, though it still turned in a modest loss for the week that was its worst in nearly two months. The Dow Jones Industrial Average climbed 546 points, or 1.7%, while the Nasdaq composite rallied 2.2%.

All told, the S&P 500 rose 75.03 points to 4,136.25. The Dow gained 546.64 to 33,674.38, and the Nasdaq climbed 269.01 to 12,235.41.

MARKET WATCH

 

[bigdog]

Stock market today: Asia shares trade mixed ahead of reports

Asian shares are trading mixed as investors take a wait-and-see view on the week ahead that’s full of reports on some of the market’s biggest worries, including stubbornly high inflation across the economy. Benchmarks rose in Tokyo and Shanghai but fell in Sydney, Seoul and Hong Kong. Wall...

apnews.com

Stock market today: Wall Street steadies as banks stabilize​

By STAN CHOE

NEW YORK (AP) — Wall Street held steady Monday ahead of a week full of reports on some of the market’s biggest worries, including how stubbornly high inflation remains across the economy.

The S&P 500 edged up by 1.87, or less than 0.1%, to 4,138.12 coming off its worst week in nearly two months. The Dow Jones Industrial Average slipped 55.69 points, or 0.2%, to 33,618.69, while the Nasdaq composite added 21.50, or 0.2%, to 12,256.92.

Besides a strong reading on U.S. jobs, which calmed worries about a possible recession but raised concerns about high inflation, last week was dominated by fears about smaller and mid-sized banks.

PacWest Bancorp rose 3.6% to recover some of its 43% plunge last week. It said on Friday night that it’s cutting its dividend to help it build its financial strength. Several other smaller- and mid-sized banks also rose, including a 0.6% tick higher for Western Alliance Bancorp.

They’ve been under heavy pressure as Wall Street hunts for the next weak link following three U.S. bank failures since March. Weighed down by much higher interest rates, smaller and mid-sized banks are scrambling to assure Wall Street their deposits are secure and not at threat of seeing a sudden exodus, similar to the runs that toppled Silicon Valley Bank and others.

The larger concern for markets is that all the turmoil could cause banks to pull back on their lending. That in turn could raise the risk of a recession that many investors already see as highly likely.

A report from the Federal Reserve on Monday showed many banks tightened their lending standards during the first three months of the year. Not only that, the survey suggested banks widely expect to raise their standards over the course of 2023. Among the reasons some smaller and mid-sized banks gave for the forecast were wanting to take less risk and worries about deposit outflows.

Weighing down on Wall Street Monday were stocks of companies that turned in worse results for the latest quarter than expected.

Tyson Foods tumbled 16.4% after it reported a loss, instead of the profit that analysts had forecast. Its revenue also fell short of expectations.

So far this earnings reporting season, the trend has been to beat analysts’ forecasts. Apple was last week’s highlight, and its better-than-expected report helped the market immensely because its stock is Wall Street’s largest and packs the most weight on the S&P 500 and other indexes.

Six Flags Entertainment jumped 18.6% Monday after it reported a loss that wasn’t as bad as analysts expected. It also said attendance was improving.

Expectations were broadly quite low, though, given high interest rates and a slowing economy. Like Apple, companies across the S&P 500 are on track to report a drop in profit for the latest quarter versus a year earlier.

In an encouraging signal, more companies than usual have been offering forecasts for upcoming results above Wall Street’s expectations. The ratio of such pre-announcements is at its strongest level in two years, equity strategist Savita Subramanian said in a BofA Global Research report, and analysts expect earnings growth to resume in the third quarter of this year.

That’s helped to steady stocks despite all the worries about much higher interest rates. The S&P 500 has been roughly churning in place since early April. It hasn’t had a weekly gain or loss of at least 1% since March, its longest stretch in nearly two years, said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.

The Federal Reserve has lifted its benchmark interest rate to a range of 5% to 5.25%, up from virtually zero early last year, in hopes of slowing high inflation. High rates do that by slowing the economy and hurting prices for investments, which runs the risk of causing a recession if they stay too high for too long.

The Fed said last week that it’s not sure of its next move, as swaths of the economy have shown sharp slowdowns but the job market remains largely resilient.

Also hanging over the economy is the threat of a default by the U.S. government on its debt.

Such an event would rock financial markets because U.S. Treasurys are seen as the safest possible investment in the world. Treasury Secretary Janet Yellen said on ABC’s “This Week” on Sunday that there are “no good options” for the United States to avoid an economic “calamity” if Congress fails to raise the nation’s borrowing limit of $31.381 trillion in the coming weeks.

In the bond market, the yield on the 10-year Treasury rose to 3.51% from 3.44% late Friday. It helps set rates for mortgages and other important loans.

The two-year Treasury, which moves more on expectations for Fed action, rose to 3.99% from 3.92%.

Later this week, the U.S. government will give the latest monthly updates on inflation at the consumer and wholesale levels. Earnings reports will also arrive from Duke Energy, The Walt Disney Co. and News Corp.

ASX 200 expected to edge lower​

The Australian share market looks set to give back a small portion of yesterday’s gains following a mixed start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 8 points or 0.1% lower.
Wall Street held steady Monday ahead of a week full of reports on some of the market’s biggest worries, including how stubbornly high inflation remains across the economy.

The S&P 500 edged up by 1.87, or less than 0.1%, to 4,138.12 coming off its worst week in nearly two months. The Dow Jones Industrial Average slipped 55.69 points, or 0.2%, to 33,618.69, while the Nasdaq composite added 21.50, or 0.2%, to 12,256.92.

Market Watch

 

[bigdog]

Stock market today: Asia dips ahead of US inflation report

Asian shares are declining in muted trading as investors await an upcoming report on U.S. inflation, an important indicator for where interest rates and global growth might go in the coming months. Benchmarks fell in morning trading in Tokyo, Sydney, Seoul, Hong Kong and Shanghai. Wall Street...

apnews.com

Stock market today: Stocks dip ahead of report on inflation​

By STAN CHOE

Wall Street dipped on Tuesday following some mixed earnings reports, as stocks remain roughly where they’ve been stuck for more than a month.

The S&P 500 fell 18.95 points, or 0.5%, to 4,119.17. The Dow Jones Industrial Average lost 56.88, or 0.2%, to 33,561.81, while the Nasdaq composite fell 77.36, or 0.6%, to 12,179.55.

Paypal fell 12.7% despite reporting better profit and revenue for the latest quarter than expected. Analysts pointed to its forecast for how much profit it expects to wring out of each $1 of revenue, which may have disappointed some investors.

Electric automaker Lucid Group dropped 5.6% after reporting a worse loss than expected for the latest quarter.

Skyworks Solutions sank 5.2% after reporting profit for the first three months of the year that matched forecasts. The company’s comments about weakness in demand from China for Android phones may have frightened investors.

On the winning side of Wall Street was Palantir Technologies. It soared 23.4% after reporting a stronger profit than expected and saying demand for its new artificial intelligence platform “is without precedent.”

So far this earnings reporting season, which is approaching its final stretch, the majority of companies have been topping forecasts for first-quarter results. That’s largely because expectations were set quite low due to a slowing economy and high interest rates. Companies in the S&P 500 are still on track to report a second straight quarter of weaker profits from year-earlier levels.

“Companies have been able to do pretty well,” said Margie Patel, senior portfolio manager at Allspring Global Investments.

The better-than-feared results have given some support to Wall Street even as many other worries are weighing on it.

Key among them is what will happen to the U.S. banking system, which is under stress following three high-profile bank failures since March. Hurt by much higher interest rates, smaller and mid-sized banks are scrambling to reassure everyone that their deposits are stable and that they aren’t at risk of a sudden exodus of customers.

Stocks of regional banks under the heaviest scrutiny by Wall Street were shaky on Tuesday. PacWest Bancorp rose 2.3% after coming back from an earlier loss. Western Alliance Bancorp dropped 1.4% after swinging between losses and gains.

The next big milestone for the market will be Wednesday’s report on inflation at the consumer level. Inflation has come down from its peak last summer, but it’s remaining stubbornly high. That’s raised uncertainty about what the Federal Reserve’s next move will be.

The central bank has already yanked its benchmark interest rates to a range of 5% to 5.25%, up from from virtually zero early last year. High rates can undercut inflation, but only by smothering the economy and hurting investment prices bluntly.

Many investors are preparing for a recession to hit later this year because of much higher rates, as well as the potential for banks to pull back on lending because of the industry’s troubles. Even though the job market has remained resilient and the unemployment rate is remarkably low, other areas of the economy have shown more weakness like manufacturing.

“It seems that although they have more data and information than anybody, the Fed seems myopically focused on the inflation rate and unemployment rate rather than looking at the big picture,” Allspring’s Patel said. “What does the person on the street see? I think they see a lot more things to be concerned about than the Fed.”

She is hopeful that stocks can have positive returns this year, but she’s quick to say that’s not an expectation.

“I want to be optimistic, but when you look at the facts, you have to temper that quite a bit,” she said.

Worries about a recession and expectations for possible cuts in rates by the Fed have caused yields to pull back since early March.

Also looming over the market is a June 1 deadline. That’s when the U.S. government could potentially run out of cash to pay its bills unless Congress allows it to borrow more. The widespread expectations is for Congress to come to a deal before that deadline because the alternative would be severe damage to the economy and financial markets.

But each day that passes without a deal threatens to raise concerns.

In the bond market, the 10-year Treasury yield rose to 3.52% from 3.51% late Monday. The two-year Treasury yield, which moves more on expectations for the Fed, rose to 4.02% from 4.00%.

ASX 200 expected to fall​

The Australian share market looks set to fall again on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 21 points or 0.25% lower this morning.

Wall Street dipped on Tuesday following some mixed earnings reports, as stocks remain roughly where they’ve been stuck for more than a month.

The S&P 500 fell 18.95 points, or 0.5%, to 4,119.17. The Dow Jones Industrial Average lost 56.88, or 0.2%, to 33,561.81, while the Nasdaq composite fell 77.36, or 0.6%, to 12,179.55.


Market Watch