NYSE Dow Jones finished today at:

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Stock market today: Asian shares extend losses after China reports lower growth than expected

Stocks around the world slipped after China reported weaker economic growth for the spring than economists expected.

apnews.com

Stock market today: Wall Street pushes higher as earnings season ramps up​

By STAN CHOE

NEW YORK (AP) — Wall Street pushed higher Monday ahead of a week full of updates about where profits for big U.S. companies are heading.

The S&P 500 rose 17.37, or 0.4%, to 4,522.79 and its highest closing level in 15 months. The Dow Jones Industrial Average gained 76.32, or 0.2%, to 34,585.35, and the Nasdaq composite climbed 131.25, or 0.9%, to 14,244.95.

Stocks elsewhere around the world slipped after China reported weaker economic growth for the spring than economists expected. Its recovery following the removal of anti-COVID restrictions has fallen short of forecasts. While that’s helped to limit inflation globally, it’s also diluted a main engine of growth for the world’s economy.

The weak data from the world’s second-largest economy helped drag crude prices lower. Benchmark U.S. oil dropped $1.27 to $74.15 per barrel. Brent crude, the international standard, lost $1.37 to $78.50 per barrel. The hope among investors is that the disappointing figures will push Chinese authorities to approve more stimulus for their economy.

In the United States, the economy has remained resilient even though an expected boost from a Chinese recovery hasn’t materialized. It’s managed to avoid a long-predicted recession despite much higher interest rates meant to push down high inflation.

A survey showed Monday that manufacturing in New York state unexpectedly grew, beating economists’ expectations for a contraction. Manufacturing has been one of the U.S. economy’s worse performing areas.

This upcoming week will offer more details on how the economy has affected companies as corporate earnings season ramps up. Nearly 60 companies in the S&P 500 are scheduled to report this upcoming week how much profit they made from April through June.

Expectations broadly are low. Analysts are forecasting the worst drop for earnings per share among S&P 500 companies since the pandemic was pummeling the economy in the spring of 2020, according to FactSet. They’re also forecasting a third straight quarter of declines in profits.

Several banks and Delta Air Lines helped kick off the reporting season last week with reports that were better than feared. This upcoming week will feature reports from Bank of America, Netflix and Tesla, among others.

While last week’s earnings reports offer just a small sample size, the season’s start is encouraging because of how strong corporate forecasts have generally been for future results, according to strategists at Bank of America.

“We expect the momentum to continue,” the strategists led by Savita Subramanian wrote in a BofA Global Research report. They expect earnings declines for S&P 500 companies to bottom out this reporting season.

Also coming up this week will be the latest monthly update on sales at U.S. retailers. Strong spending by U.S. consumers has been one of the main reasons for the economy’s resilience, driven by a remarkably sturdy job market.

Such data dovetailed with inflation that’s been on the decline have helped the S&P 500 soar nearly 18% so far this year. The hope among investors is that all of it together will push the Federal Reserve to soon put a halt to its blistering campaign to raise interest rates.

To be sure, the stock market’s big run also has critics warning it’s gotten too sure of itself. It’s still not a certainty yet that the economy will avoid a recession, that inflation will continue to coast lower and that corporate profit growth will indeed recover.

The wide expectation is for the Fed to raise rates at its meeting next week, which would take the federal funds rate to its highest level since 2001. But the hope among traders nevertheless is that will be the final hike of this cycle.

Easier interest rates help all kinds of stocks, but investors see big technology and other high-growth stocks as some of the biggest beneficiaries.

Several helped the market to rise Monday, including Tesla, which climbed 3.2%. Tesla also said over the weekend that its first production Cybertruck electric pickup has rolled off the assembly line, though that was nearly two years behind the original schedule.

Activision Blizzard rose 3.5% after a U.S. appeals court on Friday rejected a bid by regulators to block the video game maker’s $68.7 billion purchase by Microsoft. Microsoft also said on Sunday it agreed with Sony to keep the popular Call of Duty series on the PlayStation console following its acquisition of Activision Blizzard, a move that could help ease regulators’ worries about the deal.

Microsoft’s stock added 0.1%.

On the losing end was Ford, which fell 5.9%. It cut the sticker price on its F-150 Lightning electric pickup by thousands of dollars.

In markets abroad, stocks in Shanghai slipped 0.9% following the weak Chinese economic data, and South Korea’s Kospi slipped 0.4%. Markets in Japan were closed for a holiday and Hong Kong’s market was shuttered due to a typhoon.

In Europe, the losses were modest outside of a 1.1% drop for France’s CAC 40.

In the bond market, Treasury yields fell modestly. The yield on the 10-year Treasury slipped to 3.80% from 3.84% late Friday.

ASX 200 expected to fall​

The Australian share market looks set to fall on Tuesday despite a positive start to the week in the US. According to the latest SPI futures, the ASX 200 is poised to open the day 20 points or 0.25% lower.

Wall Street pushed higher Monday ahead of a week full of updates about where profits for big U.S. companies are heading.

The S&P 500 rose 17.37, or 0.4%, to 4,522.79 and its highest closing level in 15 months. The Dow Jones Industrial Average gained 76.32, or 0.2%, to 34,585.35, and the Nasdaq composite climbed 131.25, or 0.9%, to 14,244.95.

Market Watch

 

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Stock market today: Asian shares are mixed after Wall St logs 15-month high close on AI hopes

Asian shares are mixed after Wall Street’s frenzy around artificial intelligence helped pushed U.S. stocks to their best level in more than 15 months.

apnews.com

Stock market today: Wall Street’s AI frenzy and strong bank profits send stocks higher​

By STAN CHOE

NEW YORK (AP) — Wall Street’s frenzy around artificial intelligence helped push stocks to their best level in more than 15 months on Tuesday, along with stronger-than-expected profit reports from several big financial companies.

The S&P 500 rose 32.19, or 0.7%, to 4,554.98 and its highest finish since early April 2022. The Dow Jones Industrial Average rallied 366.58, or 1.1%, to 34,951.93, and the Nasdaq composite climbed 108.69, or 0.8%, to 14,353.64.

Microsoft was the biggest single force pushing up the S&P 500, by far. It shook off a morning loss and rose 4% after announcing the pricing for some artificial-intelligence services. It will charge $30 per user per month for its Microsoft 365 Copilot, which Wedbush analyst Dan Ives called a “flex-the-muscles move.”

Wall Street has sent a select group of stocks soaring this year on hopes that AI will drive tremendous growth in profits and herald a revolution for the global economy. Besides Microsoft’s nearly 50% gain for the year, Nvidia has more than tripled.

Stocks in the financial industry also drove the market higher. Charles Schwab jumped 12.6% after reporting stronger profit and revenue for the spring than analysts expected. It was one of several big financial companies to report better results than forecast, including Bank of America and Morgan Stanley.

On the losing end was Masimo, which makes medical equipment and also runs a consumer audio business home to the Bowers & Wilkins and Denon brands. It tumbled 20% after it said it expects to report weaker-than-expected revenue for the spring in part because of fewer patients at U.S. hospitals. It also said a decline in demand for audio products has moved up from the lower end to the premium and luxury end.

Wall Street’s reporting season is just ramping up as companies tell investors how much profit they earned from April through June. Banks have been at the front of the parade, which JPMorgan Chase helped begin last week with a better-than-expected report. Banks can offer a unique window into the economy’s strength because of how many different types of customers they serve.

“We continue to see a healthy U.S. economy that is growing at a slower pace, with a resilient job market,” Bank of America CEO Brian Moynihan said while reporting results for the nation’s second-largest bank. Its stock rose 4.4%.

PNC Financial Services Group, meanwhile, said its baseline outlook is for a mild recession to start in late 2023 or early 2024, lasting into the middle of next year. It also reported stronger profit for the latest quarter than expected, and its stock rose 2.5%.

Such statements get at the biggest question setting Wall Street’s agenda: whether the economy can avoid a long-predicted recession and outlast high inflation, which has forced the Federal Reserve to crank up interest rates.

Reports on the economy Tuesday came in mixed. One said that sales at U.S. retailers grew by less last month than economists expected, marking a slowdown from May’s growth. That could indicate a tiring consumer, whose strong spending so far has been one of the main bulwarks keeping the economy out of a recession.

But economists said underlying sales trends, which exclude automobiles, gasoline and other items, were stronger than expected in June.

A separate report said U.S. industrial production contracted again last month. That was a surprise to economists, who had been forecasting a flat reading.

Altogether the data seemed to reinforce the heavy bet among traders that the Federal Reserve will raise its federal funds rate at its meeting next week, but that could be the final hike of this cycle.

High rates undercut inflation by bluntly slowing the entire economy and dragging downward on prices for stocks and other investments

If the Fed does follow through on expectations and raises the federal funds rate next week to a range of 5.25% to 5.50%, it would be at its highest level since 2001. That would be up from its record low of nearly zero early last year.

But inflation has been slowing over the last year, and hopes are high on Wall Street that it will continue cooling enough to get the Fed to stop raising rates and perhaps begin cutting them next year.

Economic data broadly has been on the upswing recently, and Goldman Sachs economist Spencer Hill sees it helping growth remain “near the top end of the range we view as the sweet spot for rebalancing the labor market without a recession.”

Treasury yields bounced around following Tuesday’s economic reports.

The yield on the 10-year Treasury fell to 3.79% from 3.81% late Monday. It helps set rates for mortgages and other important loans.

The two-year Treasury yield, which moves more on expectations for the Fed, inched up to 4.76% from 4.75%.

In markets abroad, stocks rose modestly in Europe and were mixed in Asia. Hong Kong’s Hang Seng tumbled 2.1%, while Japan’s Nikkei 225 added 0.3%.

ASX 200 expected to charge higher​

The Australian share market looks set to return to form on Wednesday following a solid night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 39 points or 0.55% higher this morning.

In the United States, Wall Street’s frenzy around artificial intelligence helped push stocks to their best level in more than 15 months on Tuesday, along with stronger-than-expected profit reports from several big financial companies.

The S&P 500 rose 32.19, or 0.7%, to 4,554.98 and its highest finish since early April 2022. The Dow Jones Industrial Average rallied 366.58, or 1.1%, to 34,951.93, and the Nasdaq composite climbed 108.69, or 0.8%, to 14,353.64.


Market Watch

 

[bigdog]

Stock market today: Asian shares mixed as Japan reports weaker than expected trade data

Asian shares are mixed after Japan reported weaker than expected trade data for June, with imports falling nearly 13% from a year earlier.

apnews.com

Stock market today: Wall Street climbs again to tack more onto its big rally for the year​

By STAN CHOE

Another tick higher for Wall Street Wednesday added to its big rally for the year following profit reports from a spate of banks and other big U.S. companies.

The S&P 500 rose 10.74, or 0.2%, to 4,565.72. After its seventh gain the last eight days, it’s now up nearly 19% for the year so far and at its highest level in more than 15 months.

The Dow Jones Industrial Average gained 109.28 points, or 0.3%, to 35,061.21, and the Nasdaq composite edged up by 4.38, or less than 0.1%, to 14,358.02.

Elevance Health helped lead the market after it climbed 4.4% The insurance provider reported stronger profit and revenue for the spring than analysts expected, while raising its forecast for earnings over the full year.

Stocks also broadly got a boost from easing pressure from the bond market. Yields there were holding steady or falling after a report showed U.K. inflation cooled by more than expected. It eased to 7.9% in June, a 15-month low.

The U.K. data follows encouraging U.S. reports that have raised hope inflation is moderating enough to convince the Federal Reserve to halt its hikes to interest rates soon. That could help the economy avoid a long-predicted recession.

The pressure caused by high rates has already helped cause the failures of several U.S. banks, which saw customers suddenly flee in flocks. Other smaller and midsized banks have since been under heavy scrutiny by investors, and they’re beginning to report their results for the spring.

Western Alliance Bancorp bounced from an early loss to a gain of 7.8% after reporting weaker profit for the latest quarter than analysts expected. It also said customers added $3.5 billion in deposits from April through June.

U.S. Bancorp rose 6.5% after reporting weaker profit than expected but slightly stronger revenue. It also said its deposits grew 3.2% from earlier this year. M&T Bank gained 2.5% after reporting stronger profit than expected and higher deposits. Investment bank Goldman Sachs added 1% after it fell short of profit expectations for the latest quarter but topped forecasts for revenue.

One of Wall Street’s biggest winners was Carvana, which soared 40.2%. The used-car dealer agreed with its creditors to reduce its debt by more than $1.2 billion. It also reported a milder net loss for the latest quarter than analysts expected.

The earnings reporting season is picking up momentum in its second week, and expectations are broadly low. Analysts are forecasting a third straight quarter of drops in earnings per share for S&P 500 companies, but that low bar also makes it easier for companies to top expectations.

Trucking company J.B. Hunt Transport Services reported a drop in earnings per share for the latest quarter that was worse than analysts expected. But its stock nevertheless rose 3.8%. Analysts pointed to the company’s highlighting some encouraging trends, with a possible return to growth appearing closer on the horizon.

On the losing side of Wall Street was Omnicom Group. The marketing and communications company fell 10.4% after investors focused on its falling short of analysts’ expectations for revenue growth during the spring.

“Probably the best way to sum up this market at the moment is, ‘can’t stop, won’t stop,’” said JJ Kinahan, CEO of IG North America.

The S&P 500 has already soared 18.9% so far this year as the economy has managed to power through high interest rates, mostly thanks to a remarkably solid job market. Early in the year, much of the market’s gains came from just a small handful of Big Tech stocks, but the gains have broadened out a bit recently as the economy has held up and inflation has cooled more.

In the commodities market, wheat prices surged after Russia launched drone and missile attacks on critical port infrastructure in Ukraine, destroying 60,000 tons of grain. The price of soft red winter wheat, traded in Chicago and used for cookies and specialty products, rose 8.5%.

The attacks come days after Russia pulled out of the Black Sea Grain Initiative, which allowed exports from Ukraine to reach many countries facing the threat of hunger.

In stock markets abroad, the FTSE 100 in London jumped 1.8% following the encouraging inflation data there.

Stocks were mixed elsewhere in Europe and across Asia. Hong Kong’s Hang Seng fell 0.3%, partly due to selling of property shares after troubled developer China Evergrande reported its total debts rose in the past two years to about $340 billion.

In the bond market, the yield on the 10-year Treasury slipped to 3.74% from 3.79% late Tuesday. It helps set rates for mortgages and other important loans.

ASX 200 expected to open close to flat​

The Australian share market is expected to have a soft session on Thursday despite a solid night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 2 points higher this morning.

In the United States, another tick higher for Wall Street Wednesday added to its big rally for the year following profit reports from a spate of banks and other big U.S. companies.

The S&P 500 rose 10.74, or 0.2%, to 4,565.72. After its seventh gain the last eight days, it’s now up nearly 19% for the year so far and at its highest level in more than 15 months.

The Dow Jones Industrial Average gained 109.28 points, or 0.3%, to 35,061.21, and the Nasdaq composite edged up by 4.38, or less than 0.1%, to 14,358.02.


Market Watch

 

[bigdog]

Stock market today: Asian shares are mixed as investors weigh weakness in the tech sector

Shares are mixed in Asia after the rally on Wall Street fizzled with big declines for Tesla, Netflix and other big tech-oriented stocks.

apnews.com

Wall Street’s rally fizzles after Tesla and Netflix fall​

By STAN CHOE

NEW YORK (AP) — Drops for Tesla, Netflix and other big tech-oriented stocks put the clamps on Wall Street’s torrid rally Thursday.

The S&P 500 fell 30.85, or 0.7%, to 4,534.87, coming off its highest close since early April 2022 and its seventh gain in the last eight days. The Nasdaq composite dropped 294.71, or 2.1%, to 14,063.31 and its worst loss in more than four months.

The Dow Jones Industrial Average was an outlier and up 163.97 points, or 0.5%, to 35,225.18 because it has less of an emphasis on tech stocks.

Tesla tumbled 9.7% despite reporting stronger profit and revenue for the spring than expected. Analysts said investors may be concerned about how profitable the electric vehicle maker will be after cutting prices. Planned factory downtime during the summer for upgrades could also weigh on its upcoming results.

Because Tesla is one of the most valuable companies on Wall Street, its stock movements carry extra weight on the S&P 500 and other indexes.

Netflix sank 8.4% despite also reporting stronger profit than expected. One important measure for the company, how much revenue it makes from paid memberships on average, fell during the quarter from a year earlier.

Tesla and Netflix are two of the first huge tech-oriented companies to report their profits for the spring, and a lot is riding on the results. Big Tech stocks have rallied hard this year and been the primary reason for the S&P 500’s big gains. Netflix is still up 48% for the year so far, and Tesla has more than doubled.

If big tech stocks don’t produce the profits to justify the big moves, it could put the rally at jeopardy. Other huge winners from early this year also slid. Nvidia fell 3.3%, though it remains 211.5% higher for the year so far.

Across the rest of Wall Street, companies reported a mixed set of results.

Zions Bancorp. rose 10% after reporting stronger profit and revenue for the latest quarter than expected. It also said customers added $2 billion in deposits, or 3.2%, over the last three months, which it called a “solid’ number.

Truist Financial sank 7.1% after reporting weaker revenue than expected. It also said average deposits decreased 2.1% from earlier this year, though its profit topped expectations.

Banks have been under heavy scrutiny since three failed earlier this year, hurt by the heavy weight of high interest rates. They buckled when customers suddenly pulled their deposits, all at once.

The biggest loss in the S&P 500 came from Discover Financial, which slid 15.9%. Its results for the latest quarter fell short of forecasts, and it disclosed it was working with regulators to resolve an accounting error dating back to 2007 that misclassified some credit card accounts. It also said it was pausing buybacks of its stock while it conducts an internal review.

Doing the most work to limit the S&P 500’s losses was Johnson & Johnson. It rose 6.1% after reporting profit and revenue that both topped expectations for the latest quarter. It also raised forecasts for financial results for the full year.

Johnson & Johnson’s rally was the main reason the Dow was able to rise for a ninth straight day.

In the bond market, yields climbed after a report suggested the job market remains remarkably solid. Fewer workers applied for unemployment benefits last week than expected, an indication that layoffs aren’t worsening.

The strong job market has helped U.S. households continue spending despite much higher interest rates meant to bring down inflation, and that has helped keep the economy out of a long-predicted recession.

Inflation has been on the way down since last summer, which has many traders hoping the Federal Reserve’s next hike to interest rates, expected next week, will be the last of this cycle. That has many investors betting on what earlier looked like a long-odds result: The economy can outlast high inflation, and upcoming, easier interest rates will allow economic growth and corporate profits to keep rising.

But after Wall Street’s big rally this year, some professionals are cautioning investors not to get carried away.

The economy continues to face changes from still-high inflation and interest rates, with cuts to rates unlikely before March, according to Gregory Daco, chief economist at EY. He also pointed to possible strikes by unions and repayments on student loans as some of the vulnerabilities that could dent the economy. That’s leading to what he calls “nuanced optimism and realism.”

The yield on the 10-year Treasury rose to 3.85% from 3.75% late Wednesday. It helps set rates for mortgages and other important loans.

The two-year Treasury yield, which moves more on expectations for the Fed, climbed to 4.85% from 4.77%.

In markets abroad, stocks were higher across much of Europe and lower across much of Asia.

ASX 200 expected to edge higher​

The Australian share market looks for a soft but positive finish to the week after a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 6 points higher this morning.

In the United States, drops for Tesla, Netflix and other big tech-oriented stocks put the clamps on Wall Street’s torrid rally Thursday.

The S&P 500 fell 30.85, or 0.7%, to 4,534.87, coming off its highest close since early April 2022 and its seventh gain in the last eight days. The Nasdaq composite dropped 294.71, or 2.1%, to 14,063.31 and its worst loss in more than four months.

The Dow Jones Industrial Average was an outlier and up 163.97 points, or 0.5%, to 35,225.18 because it has less of an emphasis on tech stocks.


Market Watch

 

[bigdog]

Stock market today: Wall Street closes another winning week by barely moving

Wall Street closed out another winning week with a quiet Friday, as stocks found some stability after sliding the day before.

apnews.com

Wall Street closes another winning week by barely moving​

By STAN CHOE

NEW YORK (AP) — Wall Street closed out another winning week with a quiet Friday, as stocks found some stability after sliding the day before.

The S&P 500 edged up by 1.47, or less than 0.1%, to 4,536.34 to cap its eighth winning week in the last 10. The Dow Jones Industrial Average added 2.51 points, or less than 0.1%, to 35,227.69, its 10th gain in a row. The Nasdaq composite slipped 30.50, or 0.2%, to 14,032.81 a day after tumbling to its worst loss in more than four months.

Roper Technologies rallied 3.7% for one of the larger gains in the S&P 500 after it reported better profit and revenue for the spring than analysts expected. The company, which looks to dominate niche tech markets, also raised its financial forecasts for the full year.

The earnings reporting season is gaining momentum, and a majority of companies are reporting better results than expected. They’re doing so by a bit less than usual, though, according to FactSet.

On the losing side of Wall Street was American Express, which fell 3.9%. It reported stronger profit for the spring than expected, but its revenue fell short of forecasts.

Comerica swung from an initial gain to a loss of 4.1% after reporting stronger profit and revenue for the spring than analysts expected. The regional bank also reported a decline in average customer deposits, though it said the levels stabilized in the second half of the quarter. Deposits have been under heavy scrutiny since several banks failed in March after customers suddenly yanked out their cash.

The stock market has generally been on a tear this year as the economy has defied predictions for a recession. It’s so far powered through much higher interest rates meant to bring down inflation, and the hope is that it may outlast the Federal Reserve’s rate-hike campaign.

The Fed is widely expected to raise its federal funds rate on Wednesday to its highest level since 2001. But the hope is that will be the final increase of the cycle because inflation has been cooling since last summer. The federal funds rate started last year at virtually zero.

To be sure, the 18.1% jump for the S&P 500 this year also has critics saying the rally has come too far, too fast. The risk of recession remains because inflation and interest rates remain high.

When Fed Chair Jerome Powell speaks on Wednesday after the central bank’s decision on rates, economists at Deutsche Bank say he “is likely to emphasize that further evidence is needed to have confidence inflation will be tamed.”

Besides the Fed meeting, next week will also feature earnings reports from three of the “Magnificent Seven” companies behind the majority of the S&P 500’s gains this year. Alphabet, Meta Platforms and Microsoft will report their earnings, and expectations are high after they all soared more than 35% so far this year.

Another one of the seven, Tesla, slumped sharply on Thursday despite reporting stronger profit and revenue than expected on fears about upcoming growth. It helped drag the S&P 500 to a loss and the Nasdaq composite to a drop of 2.1%.

The top stocks have become so big and their movements have become so influential over the market that Nasdaq is rebalancing its Nasdaq 100 index before trading begins Monday, to lessen the impact some stocks have on the overall index.

The seven stocks, which also include Amazon, Apple and Nvidia, are collectively trading with stock prices that are 44 times higher than their earnings per share over the last 12 months, according to Savita Subramanian, equity strategist at Bank of America.

That’s an expensive level compared with history, but the other stocks in the S&P 500 are trading at a more reasonable-looking 17 times earnings. The stock market’s gains have broadened out a bit recently, and Subramanian said in a BofA Global Research report that she expects that to continue.

In the bond market, Treasury yields were mixed.

The 10-year Treasury yield fell to 3.83% from 3.86% late Thursday. It helps set rates for mortgages and other important loans.

The two-year Treasury yield, which moves more on expectations for the Fed, ticked up to 4.85% from 4.84%.

In markets abroad, stocks were mixed across Europe and Asia.

Taiwan’s Taiex fell 0.8% after TSMC, the world’s biggest manufacturer of computer chips, said it expects its sales to fall 10% this year as demand wanes. It also said it would not meet a 2024 target for starting production at a factory under construction in Arizona.

 

[bigdog]

ASX 200 expected to rise​

The Australian share market is poised to open the week higher despite a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 29 points or 0.4% higher on Monday.

In the United States, Wall Street closed out another winning week with a quiet Friday, as stocks found some stability after sliding the day before.

The S&P 500 edged up by 1.47, or less than 0.1%, to 4,536.34 to cap its eighth winning week in the last 10. The Dow Jones Industrial Average added 2.51 points, or less than 0.1%, to 35,227.69, its 10th gain in a row. The Nasdaq composite slipped 30.50, or 0.2%, to 14,032.81 a day after tumbling to its worst loss in more than four months.

Market Watch

 

[bigdog]

Stock market today: Asian markets follow Wall St up after Chinese promise to support economy

Asian stock markets have followed Wall Street higher after China’s ruling Communist Party promised to shore up its sagging economy ahead of a Federal Reserve meeting that traders hope will announce this interest rate cycle’s final increase.

apnews.com

Wall Street rises ahead of what’s hoped to be the last Fed rate hike for a while​

By STAN CHOE

NEW YORK (AP) — Wall Street ticked higher Monday to start a week full of updates on where interest rates and profits for some of the stock market’s most influential companies are heading.

The S&P 500 rose 18.30, or 0.4%, to 4,554.64, coming off its eighth winning week in the last 10. The Dow Jones Industrial Average gained 183.55, or 0.5%, at 35,411.24, and the Nasdaq composite added 26.06, or 0.2%, to 14,058.87.

Becton, Dickinson jumped 5.7% for the largest gain in the S&P 500 after it said its updated Alaris infusion system will return to full commercial operations following earlier recalls. It received a clearance from the U.S. Food and Drug Administration for the system, which delivers medications and other products to patients

Chevron rallied 2% after it gave an early look at its results for the spring, reporting a stronger profit than analysts expected.

Roughly 30% of companies in the S&P 500 are scheduled to tell investors this week how much they earned from April through June. Key among them are three Big Tech behemoths that have grown so large that their stock movements often dictate where the S&P 500 goes.

Alphabet, Meta Platforms and Microsoft will all report their results this week, and they’re three of the seven stocks that accounted for the majority of the S&P 500’s gain in the first half of the year. Each of the three has soared at least 37% for this year so far, and they’ll need to deliver strong numbers to justify their big rallies.

The market’s top stocks have become so big and their movements so influential over the market that Nasdaq rebalanced its Nasdaq 100 index before trading began Monday, to lessen the impact some stocks have on the overall index.

Perhaps even more important than how profits at the Big Tech titans go is what the Federal Reserve will say Wednesday at its latest meeting on interest rates.

The wide expectation is that the Fed will raise its federal funds rate again, to its highest level since 2001, as it fights to bring inflation down. But the hope among traders is that will be the final increase of this cycle because inflation has been cooling since last summer.

High rates undercut inflation by slowing the entire economy in a blunt move, as well as by hurting prices for stocks and other investments. That caused many investors to brace for a recession, but the economy has so far remained resilient due largely to a remarkably solid job market.

A report on Monday suggested the U.S. services industry is continuing to grow, but at a slower pace than economists expected. On the upside for the economy, the preliminary report from S&P Global also suggested U.S. manufacturing isn’t doing as badly as feared. Overall, growth in business activity during July appears to be at its slowest in five months.

Stocks have rallied hard this year, and the S&P 500 is up 18.6% on hopes the economy can continue to grow as inflation cools enough to get the Fed to not only stop hiking rates but to begin cutting them next year. Such a not-too-hot and not-too-cold outcome would mean the Fed pulls off a tricky “soft landing” for the economy.

“A lot would need to go right for such an outcome, in our view,” strategists at BlackRock Investment Institute wrote in a report. Rate hikes take a notoriously long time to take full effect across the economy, and they can cause unanticipated parts of it to break.

The BlackRock strategists also warn profits may be under pressure in the second half of the year as increased wages for workers eat into profit margins.

The big run for stocks in the S&P 500 this year also leaves them looking expensive compared with history, even outside the big seven stocks that have driven most of the gains, according to Doug Ramsey, chief investment officer of The Leuthold Group.

He calls this “another chance to buy high” after the market’s rebound from the 2020 COVID crash.

Public Storage, which runs self-storage facilities, rose 1.3% after it said it would buy Simply Self Storage for $2.2 billion from Blackstone Real Estate Income Trust.

In the bond market, the yield on the 10-year Treasury rose to 3.87% from 3.84% late Friday. It helps set rates for mortgages and other important loans.

In markets abroad, European stocks were mixed after data suggested manufacturing and services industries across the continent are weaker than expected. The European Central Bank will meet on interest rates Thursday.

In Asia, indexes were also mixed. Stocks sank 2.1% in Hong Kong and 0.1% in Shanghai, but they were stronger in Tokyo and Seoul.

ASX 200 expected to jump​

The Australian share market looks set to return to form on Tuesday following a positive start to the week in the US. According to the latest SPI futures, the ASX 200 is poised to open the day 41points or 0.55% higher.

Wall Street ticked higher Monday to start a week full of updates on where interest rates and profits for some of the stock market’s most influential companies are heading.

The S&P 500 rose 18.30, or 0.4%, to 4,554.64, coming off its eighth winning week in the last 10. The Dow Jones Industrial Average gained 183.55, or 0.5%, at 35,411.24, and the Nasdaq composite added 26.06, or 0.2%, to 14,058.87.


Market Watch

 

[bigdog]

Stock market today: Asian markets decline ahead of what traders hope will be final Fed rate hike

Asian stock markets are lower after Wall Street hit a 15-month high ahead of a Federal Reserve meeting that traders hope will end with the final increase in this interest rate cycle.

apnews.com

Wall Street rises to 15-month high as earnings reports roll in​

By STAN CHOE

Wall Street strengthened Tuesday after more companies reported fatter profits for the spring than expected.

The S&P 500 rose 12.82, or 0.3%, to 4,567.46 and its highest close since early April 2022. The Dow Jones Industrial Average gained 26.83, or 0.1%, to 35,438.07, and the Nasdaq composite climbed 85.69, or 0.6%, to 14,144.56.

General Electric helped lead the market with a 6.3% rally after it reported stronger profit for the latest quarter than analysts expected. It also raised its forecasts for full-year revenue and profits.

Another industrial giant, 3M, rose 5.3% after the maker of Scotch-Brite and Post-It raised its forecast for profits for the full year thanks in part to cost cutting efforts. Home builder PulteGroup climbed 6.2% after reporting stronger profit for the spring than expected.

On the losing side of Wall Street were airline stocks, led by Alaska Air Group. It fell 9.7% despite reporting stronger profit and revenue for the latest quarter than expected. Analysts said investors may have been disappointed with its financial forecasts for the current quarter.

Raytheon Technologies tumbled 10.2% after saying accelerated removals and inspections are needed for some of its Pratt & Whitney aircraft engines to look for a rare condition in powder metal. That pushed the company to lower its forecast for how much cash it will generate this year, though it also reported stronger profit for the spring than analysts expected.

This week is a busy one for earnings reports, and roughly 30% of the companies in the S&P 500 are on the schedule. The majority have been topping analysts’ expectations so far this reporting season, as is usually the case.

Two of Wall Street’s most influential stocks reported their results after trading closed for the day, Microsoft and Alphabet. They’re two of the seven stocks behind the majority of the S&P 500’s nearly 16% gain through the first half of the year.

That “Magnificent 7” will need to deliver strong results to justify their huge gains for the year so far, as their stocks soared on on expectations they’ll continue to deliver strong growth. Both Alphabet and Microsoft are up more than 38% for the year so far.

UPS, meanwhile, swung between gains and losses after reaching a tentative deal with 340,000 unionized workers to raise pay, which potentially averts a strike. UPS ended the day down 1.9%

This week’s other highlight for Wall Street also got underway Tuesday: the Federal Reserve’s latest meeting on interest rates.

The wide expectation is for the Fed on Wednesday to announce another increase to interest rates, as it tries to wrestle high inflation under control. That would take the federal funds rate to a range of 5.25% to 5.50%, its highest level in two decades and up from virtually zero early last year.

High rates grind down on inflation by slowing the entire economy and hurting prices for stocks and other investments. The hope among traders is Wednesday’s move will be the final increase of this cycle because inflation has been cooling since last summer.

Such hopes, along with rising belief that the economy can avoid a long-predicted recession, have helped stocks rally strongly this year. The job market has remained remarkably solid, which has allowed U.S. households to keep spending and propping up the economy. A report on Tuesday showed confidence among U.S. consumers rose by more than economists expected.

But many on Wall Street warn the Fed is unlikely to give any signals on Wednesday that it’s done raising rates. Inflation is still high, even if it’s moderated somewhat, and the economy may have to “yield to a long but shallow recession if the Fed is to return inflation to its 2% target,” according to Steven Ricchiuto, US chief economist at Mizuho Securities.

In the bond market, yields were relatively steady for Treasurys.

The 10-year Treasury yield was holding at 3.88%. It helps set rates for mortgages and other important loans.

The two-year Treasury yield, which moves more on the market’s expectations for Fed action, slipped to 4.88% from 4.92%.

In markets abroad, stock indexes were mixed.

Stocks jumped 4.1% in Hong Kong and 2.1% in Shanghai. Chinese leaders have promised measures to boost sluggish economic growth by supporting real estate sales and other struggling sectors but gave no details and didn’t mention possible stimulus spending.

Indexes moved more modestly around the rest of the world.

ASX 200 expected to rise
The Australian share market looks set to rise again Wednesday following a solid night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 19 points or 0.25% higher this morning.

In the United States, Wall Street strengthened Tuesday after more companies reported fatter profits for the spring than expected.

The S&P 500 rose 12.82, or 0.3%, to 4,567.46 and its highest close since early April 2022. The Dow Jones Industrial Average gained 26.83, or 0.1%, to 35,438.07, and the Nasdaq composite climbed 85.69, or 0.6%, to 14,144.56.

Market Watch

 

[bigdog]

Stock market today: Asian shares gain after the Federal Reserve raises interest rates

Asian shares are higher after the Federal Reserve raised interest rates to their highest level in more than two decades, just as Wall Street expected.

apnews.com

Stocks drift after Fed hikes rates, as yields fall on hopes that’s the last one​

By STAN CHOE

Stocks held steady Wednesday after the Federal Reserve raised interest rates to their highest level in more than two decades, just as Wall Street expected.

The S&P 500 slipped 0.71, or less than 0.1%, to 4,566.75, remaining near a 15-month high. The Dow Jones Industrial Average rose 82.05 points, or 0.2%, to 35,520.12, and the Nasdaq composite slipped 17.27, or 0.1%, to 14,127.29.

The bond market moved more sharply, and Treasury yields fell after Fed Chair Jerome Powell said no decision has been made about whether to raise rates at its next meeting or beyond. That may have bolstered hopes among traders that Wednesday’s hike could be the last for a long time.

Microsoft weighed on the market after falling 3.8%. That was despite reporting better profit and revenue for the spring than expected. Analysts said the company made comments that were perhaps intended to rein in huge expectations for upcoming growth related to artificial intelligence. Investors also may have been hoping to hear more about when slowing growth at its Azure cloud computing business will trough.

Helping to limit the market’s losses was Alphabet, which rose 5.6%. The parent company of Google and YouTube reported better profit and revenue for the spring than analysts expected.

What Big Tech titans do matters more for Wall Street than other stocks because they have become so influential due to their massive size. Seven stocks alone accounted for most of the S&P 500’s returns through the first half of this year, largely on expectations that their explosive growth will continue. They’ll need to deliver big profits to justify those gains.

Another member of the “Magnificent Seven” that’s overshadowed the rest of the market also reported its results after trading closed for the day, Meta Platforms. The stock has soared 148% so far this year, while Alphabet and Microsoft are both up more than 40%.

Boeing, meanwhile, helped prop up the Dow Jones Industrial Average, which has less of an emphasis on Big Tech than the S&P 500. The aircraft maker reported a smaller loss for the spring than analysts expected, and revenue topped expectations. Boeing’s stock rose 8.7%.

In the bond market, the highlight was the Fed’s move to raise its federal funds rate to a range of 5.25% to 5.50% in hopes of wrestling down high inflation. That’s its highest level since 2001 and up from virtually zero early last year.

The hope among traders is that will be the last increase of this cycle because inflation has been on a downward trend since last summer. Such hopes have been another big reason for Wall Street’s big rally this year. That’s because rate increases work to lower inflation by grinding down on the entire economy, raising the risk of a recession and hurting prices for investments.

The economy has so far defied predictions for a recession, largely because of a remarkably solid job market that has allowed U.S. households to keep spending. That has hopes rising that the Federal Reserve can pull off a “soft landing” for the economy where high inflation falls back to its target without a painful recession.

Some critics, though, say traders may have rushed into such hopes too quickly and too strongly. Inflation is still high, even if it’s come down, and the Fed may need to keep rates high for a while to drive it down to its 2% target. A recession is still a risk, they say.

“The market seems to be talking itself into this internally inconsistent scenario, where growth is OK, inflation is basically solved for and the Fed can start cutting rates,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

A resilient economy could cause inflation to stay elevated, he said, and inflation could reaccelerate later this year. Prices for oil and other commodities may end the year higher than a year before, for example.

“Unfortunately for the Fed, this is as easy as it gets,” Samana said. “From here, inflation is going to probably prove to be more stubborn.”

The Fed’s Powell said Wednesday that rates will likely need to stay high for a while to drive inflation lower, but he was noncommittal about the possibility of more increases. The Fed’s next opportunity to raise rates will arrive at its meeting in September, and Powell said policy makers want to see more data about where inflation and the job market are heading before then.

“It’s really dependent so much on the data, and we just don’t have it yet,” Powell said.

The yield on the 10-year Treasury fell to 3.86% from 3.89% late Tuesday. It helps set rates for mortgages and other important loans.

The two-year Treasury yield, which moves more on expectations for Fed action, sank to 4.85% from 4.88%. It was above 4.91% before Powell began speaking.

In markets abroad, stocks fell more sharply in Europe. France’s CAC 40 sank 1.4%, and Germany’s DAX lost 0.5%.

In Asia, South Korea’s Kospi fell 1.7% and Japan’s Nikkei 225 was nearly flat. Stocks in China were down modestly as traders wait to see how the country’s ruling Communist Party will carry out its promise to shore up sluggish economic growth. The ruling party has pledged to support entrepreneurs and the struggling real estate industry but has given no details.

ASX 200 expected to edge lower​

The Australian share market is expected to have a soft session on Thursday following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 1 point lower this morning.
In the United States, stocks held steady Wednesday after the Federal Reserve raised interest rates to their highest level in more than two decades, just as Wall Street expected.

The S&P 500 slipped 0.71, or less than 0.1%, to 4,566.75, remaining near a 15-month high. The Dow Jones Industrial Average rose 82.05 points, or 0.2%, to 35,520.12, and the Nasdaq composite slipped 17.27, or 0.1%, to 14,127.29.

Market Watch

 

[eskys]

Not sure if anyone has posted this, and for now, hope this is ok. If not, can the moderator please move it, thank you. (I can't find reporting season's calendar thread )

https://www.commsec.com.au/content/dam/EN/ReportingSeason/August2023/CommSec_Reporting_Season_Calendar_August_2023.pdf

 

[bigdog]

Stock market today: Asian shares mixed, Tokyo falls as Bank of Japan adjusts bond purchase policy

Asian shares are mixed after the Bank of Japan adjusted its bond purchase policy but kept its negative benchmark interest rate unchanged.

apnews.com

Wall Street’s rally runs out of gas as bond yields jump​

By STAN CHOE

Stocks fell Thursday, taking some air out of Wall Street’s big recent rally, despite fatter-than-expected profit reports from big companies and the latest signals of a resilient economy.

The S&P 500 sank 29.34, or 0.6%, to 4,537.41 after touching its highest level in nearly 16 months during the morning. The Dow Jones Industrial Average also flipped from an early gain to a loss and dropped 237.40, or 0.7%, to 35,282.72. The Nasdaq composite fell 77.17, or 0.5%, at 14,050.11.

Honeywell International was a heavy weight on the market despite reporting stronger profit for the spring than analysts expected. It dropped 5.7% after its revenue fell short of analysts’ expectations, as did its forecast for earnings in the current quarter.

The dip for Wall Street put a halt to a torrid run where the Dow climbed for 13 straight days. It was up as many as 125 points Thursday morning and seemed to be on the verge of tying a win-streak record set in 1897, before it ran out of momentum.

Stocks have been roaring on hopes the Federal Reserve can pull off what earlier seemed like a long-shot bet: successfully pull down high inflation by raising interest rates without sending the economy into a painful recession.

But critics have been saying the market’s sharp move upward has been too much, too fast and that the seemingly growing consensus about a “soft landing” for the economy is hardly a certainty.

“The move is very explainable, but I stop short of calling it justifiable because I think it’s too early to go all in on the idea that the Fed can claim victory” over high inflation, said Bryant VanCronkhite, managing director and senior portfolio manager at Allspring Global Investments.

“We still have to be humble about our ability to predict the long-term effects of what we’re living through, including the rapid rise in interest rates and recovery from a pandemic that forced massive changes in the labor force and supply chains.”

Reports about the economy on Thursday were mostly encouraging, but VanCronkhite said they could also keep the pressure up on inflation. Strong data on the job market in particular could mean U.S. households will keep spending, encouraging companies to keep raising prices. That in turn could push the Federal Reserve to keep interest rates higher than expected, keeping alive the threat of a recession.

In the bond market, Treasury yields rallied after the wave of reports indicated the economy is in stronger shape than expected.

One estimate said growth for the overall economy accelerated in the spring. That easily topped forecasts from economists, who were expecting a slowdown from the first three months of the year. That report also suggested a measure of inflation wasn’t as high from April through June as expected.

Another report, meanwhile, said fewer workers applied for jobless benefits last week. It’s the latest indication the job market remains remarkably solid, while a third report said orders for long-lasting manufactured goods strengthened more than expected last month.

The Federal Reserve on Wednesday raised its federal funds rate to its highest level in more than two decades in hopes of dragging inflation lower. High rates work by bluntly slowing the entire economy and hurting prices for stocks and other investments.

Fed Chair Jerome Powell on Wednesday, though, said any further increases in rates will depend on what reports say about the path of inflation and economy in the future. That bolstered hopes among traders that Wednesday’s increase may have been the final one of this cycle. Powell also said the Fed’s staff is no longer forecasting a recession.

The yield on the 10-year Treasury rose to 4.00% from 3.87% late Wednesday. It helps set rates for mortgages and other important loans.

The two-year Treasury yield, which moves more on expectations for the Fed, rose to 4.92% from 4.85%.

Thursday’s drops for stocks came despite a stronger-than-expected profit report from Meta Platforms, one of Wall Street’s most influential stocks. The owner of Facebook, Instagram and WhatsApp attracted additional active members, and its stock rose 4.4%.

McDonald’s rose 1.2% after it easily topped analysts’ forecasts for profits during the spring and said its sales grew worldwide.

Stocks also climbed in Europe after the European Central Bank raised interest rates and left unanswered whether more increases are coming. The French CAC 40 jumped 2.1%, and Germany’s DAX returned 1.7%.

Asian stock indexes were also mostly higher, led by a 1.4% rally for Hong Kong’s Hang Seng.

ASX 200 expected to tumble​

The Australian share market looks set to end the week deep in the red following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 44 points or 0.6% lower this morning.

In the United States, stocks fell Thursday, taking some air out of Wall Street’s big recent rally, despite fatter-than-expected profit reports from big companies and the latest signals of a resilient economy.

The S&P 500 sank 29.34, or 0.6%, to 4,537.41 after touching its highest level in nearly 16 months during the morning. The Dow Jones Industrial Average also flipped from an early gain to a loss and dropped 237.40, or 0.7%, to 35,282.72. The Nasdaq composite fell 77.17, or 0.5%, at 14,050.11.

Market Watch

 

[Telamelo]

Interesting fact that prior to overnight session just last night.. US markets had 13 consecutive green finishes! - last time that occurred was just prior to 1987 stock market crash.

 

[bigdog]

Stock market today: Wall Street returns to rallying following reports on profits and inflation

Wall Street got back to climbing following more encouraging profit reports and the latest signal that inflation is loosening its chokehold on the economy.

apnews.com

Wall Street returns to rallying following reports on profits and inflation​

By STAN CHOE

Wall Street’s rally got back on track Friday following more encouraging profit reports and the latest signal that inflation is loosening its chokehold on the economy.

The S&P 500 rose 1% to its highest close in more than 15 months. The Dow Jones Industrial Average climbed 176 points, or 0.5% after breaking a 13-day winning streak the day before. The Nasdaq composite jumped 1.9% as Big Tech stocks led the market.

Stocks have been rising recently on hopes high inflation is cooling enough to get the Federal Reserve to stop hiking interest rates. That in turn could allow the economy to continue growing and avoid a long-predicted recession. The S&P 500 closed out its third straight winning week and its ninth in the last 11.

A report on Friday bolstered those hopes, saying the inflation measure the Fed prefers to use slowed last month by a touch more than expected. Perhaps just as importantly, data also showed that total compensation for workers rose less than expected during the spring. While that’s discouraging for workers looking for bigger raises, investors see it adding less upward pressure on inflation.

The hope among traders is that the slowdown in inflation means the Federal Reserve’s hike to interest rates on Wednesday will be the final one of this cycle. The federal funds rate has leaped to a level between 5.25% and 5.50%, up from virtually zero early last year. High interest rates work to lower inflation by slowing the entire economy and hurting prices for stocks and other investments.

Critics, though, say the stock market’s rally may have gone too far, too fast. The full effects of the Fed’s rate hikes have yet to make their way fully through the system. Other parts of the economy could still crack under the pressure, like the three U.S. bank failures this spring that shook confidence. Plus, inflation remains above the Fed’s target level, and the central bank could have to keep the brakes on the economy a while to get it down to target.

“Don’t underestimate central bank commitment to 2% inflation,” Bank of America economists wrote in a BofA Global Research report.

Still, hopes for a halt to rate hikes helped technology stocks and others seen as big beneficiaries from easier rates to rally and lead the market Friday.

Microsoft, Apple and Amazon each rose at least 1.4% and were the three strongest forces pushing upward on the S&P 500.

Companies also continued to deliver stronger profits for the spring than analysts expected. Roughly halfway through the earnings season, more companies than usual are topping profit forecasts, according to FactSet.

Intel rose 6.6% after reporting a profit for the latest quarter, when analysts were expecting a loss.

Food giant Mondelez International climbed 3.7% after reporting stronger results for the spring than expected. The company behind Oreo and Ritz also raised its forecasts for financial results for the full year.

On the losing end was Exxon Mobil. It fell 1.2% and was the heaviest single weight on the S&P 500. It reported weaker profit for the spring than expected, though its revenue topped forecasts.

All told, the S&P 500 rose 44.82 points to 4,582.23. The Dow added 176.57 to 35,459.29, and the Nasdaq jumped 265.55 to 14,316.66.

In stock markets abroad, Japan’s Nikkei 225 slipped 0.4% after the Bank of Japan made moves that could allow longer-term interest rates to rise. Stocks rose in China and were modestly higher across Europe.

In the bond market, the yield on the 10-year Treasury fell to 3.95% from 4.00% late Thursday. It helps set rates for mortgages and other important loans.

The two-year Treasury, which moves more on expectations for what the Federal Reserve will do, fell to 4.87% from 4.92%.

Yields dipped after a survey said sentiment among U.S. consumers wasn’t quite as high in July as thought, though it was still the strongest reading since October 2021.

The report from the University of Michigan also said expectations for inflation inched up in July but remain well below where they were last year. The Fed wants to keep such expectations anchored because it fears a vicious cycle where expectations for high inflation only worsen it.

 

[bigdog]

ASX 200 expected to rebound​

The Australian share market is poised to open the week higher following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 19 points or 0.25% higher on Monday.

In the United States, Wall Street’s rally got back on track Friday following more encouraging profit reports and the latest signal that inflation is loosening its chokehold on the economy.

The S&P 500 rose 1% to its highest close in more than 15 months. The Dow Jones Industrial Average climbed 176 points, or 0.5% after breaking a 13-day winning streak the day before. The Nasdaq composite jumped 1.9% as Big Tech stocks led the market.

All told, the S&P 500 rose 44.82 points to 4,582.23. The Dow added 176.57 to 35,459.29, and the Nasdaq jumped 265.55 to 14,316.66.

Market Watch

 

[bigdog]

Stock market today: Asian benchmarks boosted by Wall Street's latest winning month

Asian shares are mostly rising in morning trading, boosted by market optimism set off by a Wall Street rally despite lingering worries about regional growth.

apnews.com

Wall Street perks higher to close out its latest winning month​

By STAN CHOE

NEW YORK (AP) — Wall Street closed out its latest winning month with another tick higher on Monday.

The S&P 500 added 6.73 points, or 0.1%, to 4,588.96 to cap its fifth straight month of gains. That’s its longest winning streak in nearly two years, and the index is at a 16-month high after rallying on hopes cooling inflation will mean the economy can avoid a long-predicted recession.

The Dow Jones Industrial Average climbed 100.24, or 0.3%, to 35,559.53, and the Nasdaq composite rose 29.37, or 0.2%, to 13,346.02.

To be sure, critics have been saying Wall Street’s seemingly growing consensus for a soft landing for the economy has come too quickly. Several reports this upcoming week could poke holes in the theory that inflation will keep coming down enough for the Federal Reserve to not only stop hiking interest rates but to begin cutting them by early next year.

Big names in the market, such as Rob Arnott at Research Affiliates, are warning not to be “overly hasty in popping the champagne corks.” Arnott sees the possibility of inflation rebounding again later this year, even though it’s cooled considerably recently.

Fed Chair Jerome Powell himself has pointed to Friday’s upcoming report on the overall U.S. job market as an important datapoint. Growth needs to be strong enough to keep a lid on worries about a possible recession. But a reading that’s too hot could also mean upward pressure on inflation, which could push the Fed to get more aggressive about rates.

High rates undercut inflation by slowing the overall economy and dragging on prices for stocks and other investments. The Fed has already hiked its main rate to its highest level in more than two decades, a jolting shock after the rate began last year at virtually zero.

Two of Wall Street’s most influential stocks are also set to report their earnings for the spring. Amazon and Apple are both scheduled to release their latest quarterly results on Thursday. Because they’re two of the most massive stocks on Wall Street, their stock movements pack much more punch for the S&P 500 and other indexes than other stocks.

Both stocks have soared this year, in part on expectations for strong continued growth, and they’ll need to deliver to justify the big moves. Both Apple and Amazon are up more than 50% so far this year.

Roughly halfway through the earnings reporting season, more companies than usual have topped analysts’ profit expectations, according to FactSet. Companies also seem to be more optimistic about their upcoming results, giving better-than-expected forecasts more often than usual, according to strategists at Bank of America.

“While economic uncertainty remains, we believe the profit cycle is inflecting higher,” the strategists wrote in a BofA Global Research report.

ON Semiconductor rose 2.5% for one of the larger gains in the S&P 500 after reporting stronger profit for the latest quarter than expected. The company, known as onsemi, also gave a forecast for profit in the current quarter that topped analysts’ expectations.

On the losing end was Tempur Sealy International. The mattress company said it discovered a cybersecurity event last week, which pushed it to shut down some of its technology systems. It has resumed operations after what it called a temporary interruption and is working to determine the incident’s full impact. Its stock fell 3%.

In stock markets abroad, indexes in Europe were mixed after data showed Europe’s economy has grown modestly after months of stagnation.

In Asia, stocks rose in Hong Kong and Shanghai amid hopes Beijing will deliver more stimulus for the sluggish Chinese economy.

In the bond market, U.S. Treasury yields slipped after a report suggested manufacturing in the Chicago region is weakening a bit more than economists expected. Manufacturing has been one of the hardest-hit areas in the economy by high interest rates, which work with a notoriously long lag effect.

The yield on the 10-year Treasury edged down to 3.95% from 3.96% late Friday

ASX 200 expected to jump​

Australian investors are likely to be smiling like Matildas supporters today with the market set to push higher following a positive start to the week in the US. According to the latest SPI futures, the ASX 200 is poised to open the day 25 points or 0.3% higher.

Wall Street closed out its latest winning month with another tick higher on Monday.

The S&P 500 added 6.73 points, or 0.1%, to 4,588.96 to cap its fifth straight month of gains. That’s its longest winning streak in nearly two years, and the index is at a 16-month high after rallying on hopes cooling inflation will mean the economy can avoid a long-predicted recession.

The Dow Jones Industrial Average climbed 100.24, or 0.3%, to 35,559.53, and the Nasdaq composite rose 29.37, or 0.2%, to 13,346.02.


Market Watch

 

[bigdog]

Stock market today: Asian shares slip echoing Wall Street's retreat from rally

Asian shares have fallen after Wall Street took a step back from its big rally as markets tried to digest a slew of earnings.

apnews.com

Wall Street edges back from the year’s big rally​

By STAN CHOE

NEW YORK (AP) — Wall Street took a step back from its big rally so far this year, and most stocks fell Tuesday following a mixed set of earnings reports from U.S. companies.

The S&P 500 lost 12.23, or 0.3%, to 4,576.73, coming off its fifth straight winning month. The Nasdaq composite sank 62.11, or 0.4%, to 14,283.91. The Dow Jones Industrial Average squeezed out a gain of 71.15 points, or 0.2%, to 35,630.68 even though most of the stocks within it weakened.

Travel-related stocks helped drag the market lower after they gave up some of their big gains from earlier in the year. Norwegian Cruise Line lost 12.1% despite reporting stronger profit and revenue for the spring than expected. Expectations have been high for it and rivals after its stock soared 80% for the year through Monday.

JetBlue Airways sank 8.3% to roughly halve its nearly 20% gain for the year through July, despite reporting better profit than expected for the latest quarter. It cut its forecast for results for the full year, partly because of the cancellation of a partnership with American Airlines

Worries have been broadly rising that expectations have built too high for the entire U.S. stock market after the S&P 500 surged more than 19% so far this year. Stocks had leaped to a 16-month high on hopes inflation is cooling enough to get the Federal Reserve to stop hiking interest rates. That in turn could allow the economy to avoid a long-expected recession.

While inflation has indeed come down since the summer and the economy has remained remarkably resilient, critics say it’s no guarantee inflation will continue to cool at the same rate. They say stock prices have risen too far, too quickly.

Among other stocks that struggled with high expectations Tuesday was Molson Coors Beverage. It fell 4.7% after reporting weaker revenue for the spring than expected, even though its profit topped expectations.

Most companies so far this reporting season have beaten forecasts, but that’s usually the case. And expectations were low coming into this season, with analysts calling for the worst decline in S&P 500 earnings per share in three years.

Among the winners on Wall Street Tuesday was Caterpillar. It rose 8.9% after blowing past analysts’ forecasts for earnings during the spring. It was the stock pushing up the most on the Dow, where Caterpillar can have more of an impact than on the S&P 500 because of its big stock price.

Arista Networks jumped 19.7% for the biggest gain in the S&P 500 after it also beat expectations for profit and revenue in the latest quarter.

Reports on the economy Tuesday came in mixed. The number of job openings advertised across the country dipped slightly in June, when economists were expecting a rise. But the job market broadly remains solid, propping up the rest of the economy and keeping it out of a recession so far.

One report on the manufacturing industry from the Institute for Supply Management said it contracted at a slightly worse pace in July than economists expected, but not as badly as it did in June. A separate report from S&P Global also said U.S. manufacturing is continuing to decline.

“However, producers are clearly shrugging off recession fears and planning for better times ahead,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.

Other profit reports scheduled for later in the week could have more of an impact. Amazon and Apple are scheduled to report on Thursday, and because they’re two of the biggest stocks by market value, their movements pack more punch on the S&P 500 than other companies’. Both have also soared this year, along with other Big Tech stocks.

Fed Chair Jerome Powell has also pointed to Friday’s upcoming report on the overall U.S. job market as an important data point. Growth needs to be strong enough to keep a lid on worries about a possible recession. But a reading that’s too hot could also mean upward pressure on inflation, which could push the Fed to get more aggressive about rates.

High rates undercut inflation by slowing the overall economy and dragging on prices for stocks and other investments. The Fed has already hiked its main rate to its highest level in more than two decades, a jolting shock after the rate began last year at virtually zero.

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

In the bond market, the yield on the 10-year Treasury rose to 4.03% from 3.97% late Monday. It helps set rates for mortgages and other important loans.

ASX 200 expected to tumble​

The Australian share market looks set to tumble on Wednesday following a mixed night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 39 points or 0.6% lower this morning.

In the United States, Wall Street took a step back from its big rally so far this year, and most stocks fell Tuesday following a mixed set of earnings reports from U.S. companies.

The S&P 500 lost 12.23, or 0.3%, to 4,576.73, coming off its fifth straight winning month. The Nasdaq composite sank 62.11, or 0.4%, to 14,283.91. The Dow Jones Industrial Average squeezed out a gain of 71.15 points, or 0.2%, to 35,630.68 even though most of the stocks within it weakened.

Market Watch

 

[Dona Ferentes]

Fitch downgrades US credit rating from AAA to AA+​

 

[divs4ever]

Fitch downgrades US credit rating from AAA to AA+​

let's see how the market reacts to that ... especially the bond market

 

[eskys]

Fitch downgrades US credit rating from AAA to AA+​

Good morning Dona,

I've been trying to find specific information on upgrades/downgrades about stocks. Do you know of any site that reports this, please?

 

[Dona Ferentes]

Good morning Dona,

I've been trying to find specific information on upgrades/downgrades about stocks. Do you know of any site that reports this, please?

Sorry, no. This is just a newswire story. As mentioned, probably bond market will react most.