NYSE Dow Jones finished today at:

[divs4ever]

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 not a reliable one , for example the Dow Jones Newswires often confuses NZX ticker codes with ASX ticker codes creating a trap for the impatient

others seem to have a time delay for non-paying viewers

 

[eskys]

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

Thank you, Dona, for your reply. I thought there might be a link like shortman for instance. I'd stick to the research section of trading platforms then.

Good luck with your investing, Dona.

Edit: thank you, divs....good luck with yours too.

 

[eskys]

For those in Westpac platform, they're very helpful:

Recent Upgrades​

Code	Market Cap	Sector	Provider	Previous Recomm.	Current Recomm.	Date Changed
PRU	Mid	Materials	Consensus	Moderate Buy	Strong Buy	31/07/2023
ALL	Large	Consumer Discretionary	Consensus	Moderate Buy	Strong Buy	28/07/2023
BGA	Small	Consumer Staples	Consensus	Moderate Sell	Hold	28/07/2023
BHP	Large	Materials	Consensus	Hold	Moderate Buy	28/07/2023
BSE	Small	Materials	Consensus	Hold	Moderate Buy	28/07/2023

View all Upgrades

Recent Downgrades​

Code	Market Cap	Sector	Provider	Previous Recomm.	Current Recomm.	Date Changed
PAN	Small	Materials	Consensus	Strong Buy	Moderate Buy	31/07/2023
PGC	Small	Health Care	Consensus	Strong Buy	Moderate Buy	31/07/2023
RTR	Small	Materials	Consensus	Strong Buy	Moderate Buy	31/07/2023
SGR	Mid	Consumer Discretionary	Consensus	Moderate Buy	Hold	31/07/2023
AIZ	Mid	Industrials	Consensus	Moderate Buy	Hold	28/07/2023

View all Downgrades

 

[Dona Ferentes]

For those in Westpac platform, they're very helpful:

Recent Upgrades​

Code	Market Cap	Sector	Provider	Previous Recomm.	Current Recomm.	Date Changed
PRU	Mid	Materials	Consensus	Moderate Buy	Strong Buy	31/07/2023
ALL	Large	Consumer Discretionary	Consensus	Moderate Buy	Strong Buy	28/07/2023
BGA	Small	Consumer Staples	Consensus	Moderate Sell	Hold	28/07/2023
BHP	Large	Materials	Consensus	Hold	Moderate Buy	28/07/2023
BSE	Small	Materials	Consensus	Hold	Moderate Buy	28/07/2023

View all Upgrades

Recent Downgrades​

Code	Market Cap	Sector	Provider	Previous Recomm.	Current Recomm.	Date Changed
PAN	Small	Materials	Consensus	Strong Buy	Moderate Buy	31/07/2023
PGC	Small	Health Care	Consensus	Strong Buy	Moderate Buy	31/07/2023
RTR	Small	Materials	Consensus	Strong Buy	Moderate Buy	31/07/2023
SGR	Mid	Consumer Discretionary	Consensus	Moderate Buy	Hold	31/07/2023
AIZ	Mid	Industrials	Consensus	Moderate Buy	Hold	28/07/2023

View all Downgrades

I thought you were after US stocks. Essentially, borrowing costs could rise, and this will flow to corporates.

Some implications here:

... " It's only the second time in the nation’s history that its credit rating has been cut. In 2011, the ratings agency Standard & Poor’s stripped the US of its prized AAA rating after a prolonged fight over the government’s borrowing limit. The Government Accountability Office, in a 2012 report, estimated that the 2011 budget standoff raised Treasury’s borrowing costs by $US1.3 billion that year.

At the same time, the huge size of the US economy and historic stability of the federal government has kept its borrowing costs low. Global investors often flock to US Treasury securities during periods of economic turmoil, lowering the interest rate paid by the US government.

"Fitch had warned on May 24 that it could remove the government’s triple-A rating as Congress again struggled to raise the borrowing limit. A deal was reached nearly a week later that suspended the limit and cut about $US1.5 trillion from the government deficit over the next decade.

Fitch cited the worsening political divisions around spending and tax policy as a key reason for its decision. It said US governance has declined relative to other highly rated countries and it noted “repeated debt limit standoffs and last-minute resolutions...."

 

[eskys]

The article reads more like it's politically motivated to me, Dona. Not sure if it's gonna have a huge impact....still in the As, but I could be wrong. Anyhow, the Asian markets aren't happy today. Pre market red, and I've had enough excitement in one morning.

Not here long enough to know if bigdog likes or dislikes discussion on his thread.........I'm going to leave it here before we get a blast......thank you for your likes and responses, folks.

 

[divs4ever]

The article reads more like it's politically motivated to me, Dona. Not sure if it's gonna have a huge impact....still in the As, but I could be wrong. Anyhow, the Asian markets aren't happy today. Pre market red, and I've had enough excitement in one morning.

Not here long enough to know if bigdog likes or dislikes discussion on his thread.........I'm going to leave it here before we get a blast......thank you for your likes and responses, folks.

now when i started investing back in 2011 , several investment institutions were required by their mandate to invest in ONLY AAA rated investments in selected products , now some got by , by saying only two of three BIG agencies had a AAA rating on an intended investment

has that standard been further diluted ( or abandoned ) since then

the key take-away is will fewer institutions buy US treasuries for their clients

 

[eskys]

Last post here.......divs, I've been taking shelter in our AA Bank Cap Notes. Of the dozen on my watchlist, only WBCPJ is neutral today (has had a decent run lately)

Edit: seconds after my post, it lost 4 cents

 

[divs4ever]

Last post here.......divs, I've been taking shelter in our AA Bank Cap Notes. Of the dozen on my watchlist, only WBCPJ is neutral today (has had a decent run lately)

Edit: seconds after my post, it lost 4 cents

i have always preferred corporate debt over sovereign debt for several reasons , apart from MBL ( MQG)) hybrids which were bought at a massive discount i had limited exposure to bank debt , but Basel III changed many things so now i have trivial exposure to bonds/notes/hybrids

good luck

 

[bigdog]

Stock market today: Asia follows Wall St lower after the US government's credit rating was cut

Asian stock markets have followed Wall Street lower after Fitch Ratings cut the United States government’s credit rating. Tokyo’s market benchmark fell almost 1.5%.

apnews.com

Wall Street tumbles to its worst loss in months​

By STAN CHOE

NEW YORK (AP) — Wall Street tumbled to its worst drop in months on Wednesday as its torrid rally that critics called overdone lost more momentum.

The S&P 500 sank 1.4% for its sharpest tumble since April. It was the second straight loss for the index after it hit a 16-month high last week.

The Dow Jones Industrial Average dropped 348 points, or 1%, while the Nasdaq composite fell 2.2%.

Prices were mixed in the bond market after Fitch Ratings cut the credit rating of the U.S. government. The repeated standoffs in Congress about whether to allow a default on the U.S. debt were just some of the reasons for Fitch’s cut. The downgrade strikes at the core of the global financial system because U.S. Treasurys are considered some of the safest possible investments.

Fitch’s move follows a similar one by Standard & Poor’s in 2011, one that coincided with a European debt crisis to help cause stocks and bonds around the world to swing violently. So far, this most recent downgrade has caused less drama across markets.

While the downgrade highlights how much debt the U.S. government has and the big challenges it faces in how to pay for Social Security, Medicare and other expenses, none of that is news for investors.

“Fitch’s downgrade is much ado about nothing,” said Brian Jacobsen, chief economist at Annex Wealth Management.

“Yes, it’s good to call out the fiscal situation, but when a country only issues debt in its own currency, the credit rating is irrelevant. Every investment fund I’ve looked at specifies that US Treasury securities are allowed investments, regardless of what a credit rating agency might think.”

The big issues for Wall Street remain whether the economy can avoid a long-predicted recession, as hoped, and what’s happening with corporate profits. And reports on both those questions came in mixed on Wednesday.

That offered fodder for critics who say investors were too quick to buy the belief that a soft landing is surely ahead for the economy. They’ve been saying Wall Street rallied too much, too quickly this year. Analysts said some of Wednesday’s selling could be investors locking in profits made during the S&P 500’s 19.5% run for the year through July.

One report suggested hiring in the private sector remains much stronger than economists expected, even if it slowed slowed from the prior month.

A job market that remains solid could keep a lid on worries about a possible recession. But investors also fear a too-strong reading, which could persuade the Federal Reserve too much upward pressure still exists on inflation.

The Fed has already yanked its federal funds rate higher at tremendous speed in hopes of undercutting inflation. High rates do that by slowing the economy bluntly, but that risks causing a recession and hurts prices of investments along the way.

Inflation has been cooling since last summer’s peak, and the rising hope on Wall Street had been that the Fed won’t hike rates anymore and could even begin cutting them next year.

Wednesday’s stronger-than-expected jobs report from ADP could be a signal of what Friday’s more comprehensive report from the U.S. government will say. Fed Chair Jerome Powell has highlighted Friday’s numbers as a big influence on the central bank’s next move in September.

Higher rates tend to hurt technology and other high-growth stocks in particular, and Big Tech stocks helped drag the market lower. Microsoft, Nvidia and Amazon all fell more than 2.5% and were some of the heaviest weights on the S&P 500.

Generac Holdings, which sells generators and other power products, tumbled 24.4% for the biggest drop in the S&P 500 after it reported weaker profit for the spring than analysts expected.

SolarEdge Technologies dropped 18.4% after reporting weaker profit and revenue growth than forecast. It said higher interest rates are pressuring U.S. residential customers.

Most companies this reporting season, though, have been topping profit expectations. That’s usually the case, and expectations were quite low coming into this reporting season. Analysts were forecasting a third straight quarter of weaker earnings per share for S&P 500 companies.

On the winning side of Wall Street was CVS Health, which rose 3.3%. after it reported a milder drop in results than expected. Humana climbed 5.6% after it topped expectations for the latest quarter.

They were among the relatively few stocks to rise. Only about a quarter of the stocks in the S&P 500 climbed.

All told, the S&P 500 fell 63.34 to 4,513.39. The Dow dropped 348.16 to 35,282.52, and the Nasdaq sank 310.47 to 13,973.45.

In stock markets abroad, indexes were broadly lower across Europe and Asia after the downgrade of the U.S. credit rating injected some caution.

In the bond market, the yield on the 10-year U.S. Treasury rose to 4.07% from 4.04% late Tuesday. It helps set rates for mortgages and other important loans. The two-year U.S. Treasury yield slipped to 4.89% from 4.91% as its price rose.

ASX 200 expected to tumble​

The Australian share market is expected to tumble again on Thursday following a very poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 58 points or 0.75% lower this morning.

Wall Street tumbled to its worst drop in months on Wednesday as its torrid rally that critics called overdone lost more momentum.

The S&P 500 sank 1.4% for its sharpest tumble since April. It was the second straight loss for the index after it hit a 16-month high last week.

The Dow Jones Industrial Average dropped 348 points, or 1%, while the Nasdaq composite fell 2.2%.


Market Watch

100% RED DAY YESTERDAY

 

[Knobby22]

Two pieces of bad data spooked the market yesterday.

US manufacturing index is contracting - quite severely, suggesting a recession is coming and Fitch downgrading US debt to AA+.

Due to interest rates rising, the interest payments have reached 1 Trillion dollars a year which is more than half the total company tax take!!

 

[bigdog]

Stock market today: Asian stocks mixed after Wall St sinks for 3rd day following British rate hike

Asian stocks markets are mixed after Wall Street sank for a third day following an interest rate hike in Britain. Shanghai and Hong Kong advanced. Tokyo retreated.

apnews.com

Wall Street slips as its big rally cools some more​

By STAN CHOE

Stocks slipped Thursday as Wall Street’s red-hot rally for the year cooled a bit more.

The S&P 500 fell 11.50, or 0.3%, to 4,501.89 for its third straight loss after setting a 16-month high. The Dow Jones Industrial Average dropped 66.63, or 0.2%, to 35,215.89, and the Nasdaq composite dipped 13.73, or 0.1%, to 13,959.72.

A day earlier, U.S. stocks tumbled to their worst loss in months. While the drop came after Fitch Ratings downgraded the U.S. government’s credit rating, analysts say they expect the move to mean little for financial markets. U.S. Treasury debt is the cornerstone of the global financial system, but the downgrade likely won’t push any investors to dump theirs.

The big questions remain whether the economy will avoid a recession, how corporate profits will do and where interest rates are heading. Hanging over them all is whether the stock market’s big run this year was overdone, as critics suggest.

Treasury yields in the bond market continued to march higher Thursday, putting more pressure on the stock market. The yield on the 10-year Treasury rose to 4.18% from 4.09% late Wednesday and from 2.75% a year ago.

Higher yields mean bonds are paying more in interest, which can peel buyers away from stocks. They also make borrowing more expensive for companies, crimping their profits.

Yields have climbed as the economy has remained remarkably resilient despite much higher interest rates meant to drive down inflation. The U.S. government also continues to borrow heavily.

In the latest reading on the economy, a report showed that the number of workers applying for unemployment benefits rose last week but remains relatively low.

A solid job market has helped to keep the economy out of a long-predicted recession. But it also threatens to keep upward pressure on inflation. That could push the Federal Reserve to keep raising interest rates, dashing Wall Street’s hopes that the last hike of the cycle has already passed.

“The Fed has singled out the jobs market as a potential inflationary threat, and until it shows some signs of deterioration, we’re still looking at a ‘higher for longer’ outlook for interest rates,” said Mike Loewengart, head of model portfolio construction at Morgan Stanley Global Investment Office.

The Fed has hiked its federal funds rate to the highest level in more than two decades, up from virtually zero early last year. High rates grind down inflation by bluntly slowing the entire economy and dragging on prices for investments.

Critics say a consensus has formed too quickly on Wall Street that inflation will continue to moderate and that the Fed can not only halt its hikes to rates but even begin cutting them early next year.

Across the Atlantic, the Bank of England on Thursday raised its main interest rate again to a 15-year high and indicated it could stay high for a while.

In separate reports Thursday, one from the Institute for Supply Management said growth in the U.S. economy’s services industries continued last month, though at a slower rate than economists expected. Another report from S&P Global also said growth is slowing for services industries, pointing to customers contending with the more expensive cost of living and higher interest rates.

Earnings reporting season also continues for big U.S. companies. Most have reported better results for the spring than expected, but that’s usually the case and expectations were quite low coming into this quarter’s season.

Qualcomm tumbled 8.2% for one of the larger losses in the S&P 500. It reported weaker revenue for the spring than expected, even though its profit topped forecasts.

On the winning side was Clorox, which jumped 9%. It reported stronger profit and revenue than analysts expected.

Stocks of energy producers were also stronger, and Exxon Mobil gained 1.7%. They benefited as crude prices rallied after Saudi Arabia said it will keep in place cuts to production meant to boost oil’s price.

Two hugely influential companies reported their results after trading ended for the day. Apple and Amazon are two of the largest companies on Wall Street by market value, which gives their stock movements more heft on the S&P 500 and other indexes.

They also both soared more than 45% this year on expectations of continued growth. That means pressure on them to deliver big results to justify the big stock gains.

Another potentially market-moving report will arrive Friday morning, when the U.S. government gives its latest monthly update on the job market. Fed Chair Jerome Powell has highlighted it as a key datapoint that could influence the Fed’s next move on interest rates in September.

In stock markets abroad, indexes were down across Europe and much of Asia.

ASX 200 expected to edge higher​

The Australian share market looks set to end the week with a small gain despite a subdued night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 7 points or 0.1% higher this morning.

In the United States, stocks slipped Thursday as Wall Street’s red-hot rally for the year cooled a bit more.

The S&P 500 fell 11.50, or 0.3%, to 4,501.89 for its third straight loss after setting a 16-month high. The Dow Jones Industrial Average dropped 66.63, or 0.2%, to 35,215.89, and the Nasdaq composite dipped 13.73, or 0.1%, to 13,959.72.

A day earlier, U.S. stocks tumbled to their worst loss in months. While the drop came after Fitch Ratings downgraded the U.S. government’s credit rating, analysts say they expect the move to mean little for financial markets. U.S. Treasury debt is the cornerstone of the global financial system, but the downgrade likely won’t push any investors to dump theirs.


Market Watch

Almost another day of RED

 

[divs4ever]

Two pieces of bad data spooked the market yesterday.

US manufacturing index is contracting - quite severely, suggesting a recession is coming and Fitch downgrading US debt to AA+.

Due to interest rates rising, the interest payments have reached 1 Trillion dollars a year which is more than half the total company tax take!!

and the assumes US tax revenues will rise ( not a safe bet even with unofficial inflation the way it is

 

[bigdog]

Stock market today: Wall Street falls again to close out its first losing week in four

Stocks fell to close out a rare losing week for Wall Street following mixed reports on the U.S. job market and two of the market’s most influential stocks.

apnews.com

Wall Street falls again to close out its first losing week in four​

By STAN CHOE

NEW YORK (AP) — Stocks fell Friday to close out a rare losing week for Wall Street following mixed reports on the U.S. job market and two of the market’s most influential stocks.

The S&P 500 sank 23.86, or 0.5%, to 4,478.03. It was the fourth straight drop for Wall Street’s main measure of health after it set a 16-month high at the start of the week.

The Dow Jones Industrial Average also drifted between gains and losses through the day before ending with a loss. It dropped 150.27 points, or 0.4%, to 35,065.62, and the Nasdaq composite gave up 50.48, or 0.4%, to 13,909.24.

Treasury yields tumbled in the bond market after a highly anticipated U.S. jobs report said hiring was a touch weaker last month than economists expected, though wages for workers rose more than forecast.

The job market is in a precarious place, where investors want a reading that’s neither too hot nor too cold. On one hand, investors want it to remain strong enough to keep the economy out of a long-predicted recession. On the other, they don’t want wage growth in particular to be so strong that the Federal Reserve sees it putting upward pressure on inflation.

Friday’s reading offered no slam dunks for either side, but analysts said it may suggest a job market that’s moderating.

“Over the last year the labor market has shifted from one where everyone wins to one where there are plenty of areas of weakness,” said Brian Jacobsen, chief economist at Annex Wealth Management. “Wage growth was stronger than expected, but coupled with a shorter workweek you get lower incomes. Fed officials will see what they want to see, but it’s pretty clear that manufacturing is struggling and services is slowing.”

If the job market keeps moderating, it could allow inflation to continue to cool from its peak reached last summer. That in turn would bolster Wall Street’s hopes that the Federal Reserve won’t hike interest rates any more.

High rates work to grind down inflation by slowing the overall economy and hurting prices for investments. The Fed has already pulled its federal funds rate to its highest level in more than two decades, up from virtually zero early last year.

Critics, though, say it’s far from assured that inflation will easily drop back down to the Fed’s target and that the economy will avoid a painful recession. That’s why they say the 19.5% surge for the S&P 500 through this year’s first seven months was too much, too fast. This week was just the third losing week for the S&P 500 in the last 12.

Big Tech stocks in particular led Wall Street’s charge this year, with expectations for strong continued growth leading to tremendous gains in their stock prices. Two of them offered a mixed picture of their results after trading ended Thursday.

Amazon jumped 8.3% in its first trading after it reported a much bigger profit for the spring than expected. The company said growth for its important cloud-computing business stabilized during the quarter, and its revenue also topped analysts’ forecasts.

Apple, though, slumped 4.8% despite reporting stronger profit than expected. Its revenue only just barely topped analysts’ estimates, and its forecast for revenue in the current quarter didn’t blow past expectations.

Its stock had already cruised 47% higher for the year through Thursday, with its total value topping $3 trillion, meaning high expectations were built into its price.

Because it’s the biggest stock on Wall Street by market value, Apple’s movements pack extra punch on the S&P 500 and other indexes. It was the single biggest weight on the S&P 500 Friday by far.

Like Amazon and Apple, most companies in the S&P 500 have been reporting stronger profits for the spring than analysts expected. That’s usually the case, but expectations were particularly low coming into this reporting season. Analysts are still calling for the worst drop in profit declines for S&P 500 companies in nearly three years.

Booking Holdings jumped 7.9% for one of the biggest gains in the S&P 500 after it blew past analysts’ forecasts for the spring. It said customers are looking to book leisure travel, and the strong demand is continuing into the current quarter. Its brands include Booking.com and Priceline.

In the bond market, the yield on the 10-year Treasury dropped to 4.04% from 4.18% 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, fell to 4.77% from 4.89%.

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

 

[bigdog]

ASX 200 expected to edge lower​

The Australian share market is poised to open the week lower following a poor finish to the last one on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 11 points lower on Monday.

NEW YORK (AP) — Stocks fell Friday to close out a rare losing week for Wall Street following mixed reports on the U.S. job market and two of the market’s most influential stocks.

The S&P 500 sank 23.86, or 0.5%, to 4,478.03. It was the fourth straight drop for Wall Street’s main measure of health after it set a 16-month high at the start of the week.

The Dow Jones Industrial Average also drifted between gains and losses through the day before ending with a loss. It dropped 150.27 points, or 0.4%, to 35,065.62, and the Nasdaq composite gave up 50.48, or 0.4%, to 13,909.24.


Market Watch

 

[bigdog]

Stock market today: Asia mixed after Wall St rallies ahead of US inflation update

Asian stocks are mixed after Wall Street rallied and Japanese wages rose ahead of a U.S. inflation update that might influence Federal Reserve plans for more possible interest rate hikes.

apnews.com

Wall Street rises to regain momentum after last week’s lull​

By STAN CHOE

NEW YORK (AP) — Stocks climbed Monday as Wall Street’s big rally for the year kicked back into gear following a brief hiccup.

The S&P 500 rose 40.41, or 0.9%, to 4,518.44 and recovered more than a third of its loss from last week. That was its first losing week in four and just its third in the last 12.

The Dow Jones Industrial Average rallied 407.51 points, or 1.2%, to 35,473.13, and the Nasdaq composite added 85.16, or 0.6%, to 13,994.40.

Berkshire Hathaway rose 3.6% and was a major force lifting the market after the company run by famed investor Warren Buffett reported stronger profit and revenue for the spring than analysts expected. Pharmaceutical company Viatris also rose after its results topped forecasts. Viatris’s stock climbed 3.9%

The stronger-than-expected reports helped offset a 3.8% drop for Tyson. The company’s results for the latest quarter fell far short of analysts’ expectations, and Tyson said it would close four chicken facilities as it tries to cut costs.

Corporate profits have been mostly beating forecasts as the season for reporting results from April through June enters its tail end. Nearly four out of five companies in the S&P 500 have topped expectations so far, according to FactSet. But they’re still on track to report their sharpest drop in profit since the summer of 2020, when the pandemic was pummeling the global economy.

Besides profit reports from some media giants like The Walt Disney Co. and Fox, this upcoming week also features highly anticipated reports on inflation.

Inflation has been the key to Wall Street’s big moves in recent years after soaring to its worst level in generation. Since hitting a peak last summer, inflation has been cooling steadily. That has raised hopes the Federal Reserve may be done with its drastic hikes to interest rates.

Higher rates try to smother inflation by bluntly slowing the entire economy and hurting prices for investments. The Fed has quickly pulled its federal funds rate to the highest level in more than two decades, up from virtually zero early last year.

Inflation has come down from more than 9% last summer to 3% in June. But many economists and professional investors say the toughest part may still be ahead as the Fed tries to get inflation down toward its 2% target.

Sticky inflation could mean Wall Street latched too quickly onto the hope that rate hikes are over and the economy will have a soft landing. If that’s the case, the S&P 500’s rally of 19.5% through the year’s first seven months could also be overdone, as critics suggest.

Some recent earnings reports may be hinting at the still-existing risk of a mild recession, as all the Fed’s past rate hikes make their way through the system, according to Amanda Agati, chief investment officer for PNC Financial Services Asset Management Group.

She points to Chipotle, Starbucks and Apple, which all reported revenue either below or right at analysts’ expectations for the spring. They’re “very much a part of the daily life of upper middle-income consumers. Yet their sales were weak.”

Oil prices have perked up recently. The price of a barrel of U.S. crude added roughly $10 through July to top $80, though it slipped 88 cents to $81.94 on Monday.

A remarkably resilient job market may also be putting a floor under inflation by giving households fuel to keep spending and keep inflationary forces alive. A report last week showed that wages for workers rose more in July than expected, though hiring was cooler than forecast.

On Thursday, the U.S. government will release the latest monthly update on inflation that consumers are feeling, and economists are forecasting it will show a 3.3% rise in prices from year-ago levels. That would be an acceleration from June’s inflation rate.

The Fed pays particularly close attention to what prices are doing for services outside of rent and housing. Much of the improvement there during June came from a sharp drop in airfares. Now that they’re back to where they were before the pandemic, they may not move much, economists at Deutsche Bank say.

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

In the bond market, yields ticked higher after jumping last week and putting pressure on the stock market. The yield on the 10-year Treasury rose to 4.09% from 4.04% late Friday. 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 4.77% from 4.76%.

ASX 200 expected to rebound​

The ASX 200 is expected to rebound on Tuesday. This follows a positive start to the week in the US. According to the latest SPI futures, the ASX 200 is poised to open the day 29 points or 0.4% higher.

On Wall Street, stocks climbed Monday as Wall Street’s big rally for the year kicked back into gear following a brief hiccup.

The S&P 500 rose 40.41, or 0.9%, to 4,518.44 and recovered more than a third of its loss from last week. That was its first losing week in four and just its third in the last 12.

The Dow Jones Industrial Average rallied 407.51 points, or 1.2%, to 35,473.13, and the Nasdaq composite added 85.16, or 0.6%, to 13,994.40.


Market Watch

 

[bigdog]

Bit late, had to clean up before the wife arrived home

Stock market today: Wall Street dips as markets fall worldwide on worries about banks, economy

Wall Street slipped as worries about the banking system and the global economy forced more caution into financial markets worldwide.

apnews.com

Wall Street dips as markets fall worldwide on worries about banks, economy​

By STAN CHOE

NEW YORK (AP) — Wall Street slipped Tuesday as worries about the banking system and the global economy forced more caution into financial markets worldwide.

The S&P 500 fell 19.06, or 0.4%, to 4,499.38 and at one point was down nearly triple that. It was the fifth loss in the last six days for the index after it rocketed through the year’s first seven months.

The Dow Jones Industrial Average fell 158.64, or 0.4%, to 35,314.49 after paring an earlier loss of 465 points. The Nasdaq composite lost 110.07, or 0.8%, to 13,884.32.

In the U.S., bank stocks fell after Moody’s cut the credit ratings for 10 smaller and midsized ones. It cited a list of concerns about their financial strength, from the effects of higher interest rates to the work-from-home trend that’s leaving office buildings vacant.

Across the Pacific, stocks sank after a report showed exports for China’s troubled economy shrank by the most since the start of the pandemic in 2020. And in Europe, bank stocks dropped after Italy’s Cabinet approved a proposal to tax a chunk of their profits this year.

The worries layered on top of a mixed set of earnings reports from big U.S. companies.

Beyond Meat tumbled 14.3% after its revenue weakened by more during the spring than analysts expected. Demand is softening for its plant-based products.

Software company Palantir Technologies gave up some of its big gains for the year after it reported results for the spring that only matched analysts’ expectations. It fell 5.3%, though it’s still up more than 165% for the year so far on expectations for tremendous growth. It’s one of the companies that’s been riding Wall Street’s frenzy around artificial-intelligence technology.

Helping to limit the stock market’s losses was Eli Lilly, which jumped 14.9%. It reported profit and revenue for the spring that topped analysts’ expectations. It benefited from booming sales for its diabetes treatment Mounjaro, which is widely used for weight loss.

Treasury yields fell in the bond market as investors moved into investments considered safer. It’s a comedown from the climb yields have been on recently, which has pressured the stock market.

The Federal Reserve has hiked its main interest rate to the highest level in more than two decades in hopes of grinding down inflation. High rates work by slowing the entire economy bluntly, which has raised the risk of a recession.

The much higher rates have hit banks particularly hard.

While downgrading credit ratings for 10 banks and putting six others under review, Moody’s said the rapid rise in rates has led to conditions that hurt profits for the broad industry. Higher rates also knock down the value of investments that banks made when rates were super low. Such conditions helped cause three high-profile failures for U.S. banks this past spring, which shook confidence in the system.

Moody’s also said troubles may be coming for banks with lots of commercial real estate loans, which are threatened as work-from-home trends keep people out of offices.

“This comes as a mild US recession is on the horizon for early 2024 and asset quality looks set to decline from solid but unsustainable levels,” Moody’s Jill Cetina and Ana Arsov wrote in a report.

M&T Bank, one of the banks whose credit rating they downgraded, fell 1.5%. Northern Trust, one of the banks that Moody’s said it’s reviewing for a possible downgrade, fell 1.6%

Other, larger banks whose credit ratings weren’t affected also sank. Bank of America dropped 1.9%.

Later this week, the U.S. government will release data on consumer and wholesale inflation, which could influence what the Federal Reserve does next with interest rates.

The hope on Wall Street is that the cooldown in inflation since it topped 9% last summer will help persuade the Fed no more rate hikes are needed. Economists expect Thursday’s data to show consumer prices rose by 3.3% in July over a year ago, an acceleration from June’s inflation rate of 3%.

But some economists and investors say getting inflation down that last bit to the Fed’s target of 2% is likely to be the most difficult. They’re saying that Wall Street has become convinced too quickly about a “soft landing” coming for the economy and that the 19.5% run for the S&P 500 through the first seven months of this year was overdone.

In the bond market, the yield on the 10-year Treasury fell to 4.02% from 4.10% late Monday. It helps set rates for mortgages and other loans.

The two-year Treasury yield, which more closely tracks expectations for the Fed, slipped to 4.75% from 4.79%.

In Asia, stocks fell 1.8% in Hong Kong and 0.3% in Shanghai following the disappointing Chinese export data. The world’s second-largest economy was supposed to be a bulwark for the rest of the world after it removed anti-COVID restrictions. But it’s since stumbled, weakening a big engine of growth.

ASX 200 expected to edge lower​

The Australian share market looks set to fall on Wednesday following a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 5 points or 0.1% lower this morning. In the United States,

Wall Street slipped Tuesday as worries about the banking system and the global economy forced more caution into financial markets worldwide.

The S&P 500 fell 19.06, or 0.4%, to 4,499.38 and at one point was down nearly triple that. It was the fifth loss in the last six days for the index after it rocketed through the year’s first seven months.

The Dow Jones Industrial Average fell 158.64, or 0.4%, to 35,314.49 after paring an earlier loss of 465 points. The Nasdaq composite lost 110.07, or 0.8%, to 13,884.32.


Market Watch

 

[bigdog]

Stock market today: Asian shares mostly slip as markets brace for US inflation report

Asian benchmarks are trading mostly lower after shares declined on Wall Street and investors braced for a highly anticipated report on U.S. inflation.

apnews.com

Wall Street slips as markets brace for coming report on inflation​

By STAN CHOE

NEW YORK (AP) — Stocks slipped Wednesday, as Wall Street braced for a highly anticipated report on inflation that’s on the way.

The S&P 500 fell 31.67, or 0.7%, to 4,467.71 for its sixth drop in the last seven days. The Dow Jones Industrial Average lost 191.13, or 0.5%, to 35,123.36, and the Nasdaq composite sank 162.31, or 1.2%, to 13,722.02 as Big Tech stocks led the declines.

Stocks have cooled in August since soaring 19.5% through the first seven months of the year. Several reasons are behind the mini-pullback, including criticism that Wall Street too quickly formed a consensus that inflation will keep cooling, the economy will keep growing and the Federal Reserve has already finished its hikes to interest rates.

A report on Thursday will offer a big clue on how warranted those hopes are. The U.S. government will give the latest monthly update on inflation that consumers are feeling across the country, and economists expect to see an acceleration to 3.3% in July from 3% in June.

Such a reading would be down sharply from its peak of more than 9% last summer, but economists say the last bit of improvement to get inflation down to the Fed’s 2% target may be the toughest part.

Fed officials have said repeatedly recently that their upcoming decisions on interest rates will depend on what the data tells them, and they’ve pointed to reports on inflation and the job market in particular.

“With risks turning increasingly two-sided, Fed officials are beginning to shift the focus toward how long to hold rates steady at sufficiently restrictive levels,” according to economists at Deutsche Bank.

A reading on Thursday that’s much worse than expected could raise fears that the Fed’s job in battling inflation is far from done and that it may have to keep hiking interest rates. At the least, it could push the Fed to keep rates high for longer than expected.

High rates slow inflation by grinding down the entire economy and hurting investment prices. The Fed has already pulled its federal funds rate to the highest level in more than two decades. With rate hikes historically taking a long time to take full effect across the economy, the risk of a recession still remains.

In the meantime, companies continue to offer profit reports for the spring that are mostly better than analysts expected.

Axon Enterprise, the company behind Tasers and Axon body cameras, jumped 14.1% for the biggest gain in the S&P 500. It reported much stronger profit for the spring than analysts expected.

Akamai Technologies also helped to lead the market after beating forecasts for both profit and revenue. Its stock rose 8.5%.

Outside of earnings, Penn Entertainment jumped 9.1% after the company said it’s paying $1.5 billion for the exclusive rights to re-brand its sports-betting app with the ESPN name.

On the losing end of Wall Street was Lyft, which skidded 10%. The ride-share company reported better results for the latest quarter than expected, and its forecasts for the current quarter also topped forecasts. But analysts highlighted some cautious comments from the company for expectations for the end of the year.

WeWork plunged 38.6% to 13 cents after saying there’s substantial doubt about its ability to stay in business as it burns through cash. The workspace-sharing company has already had a couple spectacular rises and falls in its history, and it reported a larger loss for the spring than expected.

Nvidia was the heaviest weight on the S&P 500, falling 4.7%. The chipmaker is one of the stocks that have rocketed this year due to Wall Street’s frenzy around artificial-intelligence technology, raising fears that they went too far.

Other Big Tech stocks also fell, and their movements pack more punch on the S&P 500 because of their massive size. Amazon sank 1.5%, Microsoft fell 1.2% and Tesla dropped 3%. The threat of high rates tends to hit technology and other high-growth stocks the hardest.

In the bond market, the yield on the 10-year Treasury slipped to 4.00% from 4.03% late Tuesday. That yield helps set rates for mortgages and other loans.

The two-year Treasury yield, which moves more on expectations for action by the Fed, rose to 4.80% from 4.76%.

In stock markets abroad, indexes were modestly higher in Europe and mixed in Asia. A report showed that prices at the consumer level in China were lower in July than a year earlier.

China was supposed to help prop up the global economy after it removed anti-COVID restrictions, but its recovery has fallen short of expectations. The weakness, though, has also kept some pressure off inflation around the rest of the world.

ASX 200 expected to rise
The Australian share market is expected to rise on Thursday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 4 points higher this morning.

New York: Stocks slipped Wednesday, as Wall Street braced for a highly anticipated report on inflation that’s on the way.

The S&P 500 fell 31.67, or 0.7%, to 4,467.71 for its sixth drop in the last seven days. The Dow Jones Industrial Average lost 191.13, or 0.5%, to 35,123.36, and the Nasdaq composite sank 162.31, or 1.2%, to 13,722.02 as Big Tech stocks led the declines.

US stocks have cooled in August since soaring 19.5% through the first seven months of the year.

Market Watch

 

[bigdog]

Stock market today: Asian stocks decline after US inflation edges higher

Asian stock markets are lower after U.S. inflation edged higher, fueling unease about the outlook for the biggest global economy.

apnews.com

Wall Street swings after inflation data, ends little changed​

By STAN CHOE

NEW YORK (AP) — Stocks swung through shaky trading Thursday following the latest update on inflation across the U.S., only to end up roughly where they started.

The S&P 500 edged up by 1.12, or less than 0.1%, to 4,468.83. It was just the second winning day for the index in the last eight, but it had been up 1.3% in the morning before wobbling between small gains and losses.

The Dow Jones Industrial Average gained 52.79, or 0.2%, to 35,176.15 after giving up most of a morning gain of 455 points. The Nasdaq composite added 15.97, or 0.1%, to 13,737.99.

The morning’s highly anticipated report showed U.S. consumers paid prices that were 3.2% higher in July than a year earlier. That’s a touch milder than the 3.3% inflation rate economists expected to see and down sharply from last summer’s peak above 9%. Beneath the surface, underlying trends for inflation were also within expectations.

The readings bolstered hopes among investors that the Federal Reserve’s campaign to grind down inflation is progressing and that it could maybe even be done hiking interest rates. High rates undercut inflation by slowing the entire economy and hurting investment prices, which raise the risk of a recession.

Such hopes helped the S&P 500 rally a big 19.5% through the first seven months of the year. But critics have been saying Wall Street latched too quickly and forcefully onto a belief that inflation will continue to cool, the economy will avoid a recession and the Fed has already hiked rates for the final time this cycle. Several economists said again on Thursday that future moves by the Fed are still uncertain, tamping down some enthusiasm.

The Fed has said it will make upcoming decisions on rates based on what data reports say, particularly those on inflation and the job market. Its main interest rate is already at its highest level in more than two decades.

Thursday’s report likely gives the Fed a reason to hold rates steady at its next meeting in September, before it gets more economic data in the runup to the following meeting that ends Nov. 1, according to Gargi Chaudhuri, head of iShares Investment Strategy, Americas.

“Separating the signal from the noise, most of the components of inflation are heading in the right direction,” said Brian Jacobsen, chief economist at Annex Wealth Management. He said if the trends continue, it will be tough to justify another hike to interest rates.

Another report on inflation is looming on Friday, which will show how bad inflation was in July at the wholesale level. Then, more reports on inflation and one more on overall hiring for August will arrive before the Fed’s next meeting that ends Sept. 20.

Treasury yields in the bond market initially fell following the inflation data, along with a report that showed slightly more workers applied for unemployment benefits last week than expected.

Fed officials would likely welcome some softening of the job market, which has remained remarkably resilient despite much higher interest rates. That’s because a looser job market could remove upward pressure on inflation.

The weekly data on unemployment claims, though, have given false inflection points in the past about the job market, said Mike Loewengart, head of model portfolio construction at Morgan Stanley Global Investment Office. That could mean the cuts to interest rates that investors really desire may be further off than hoped.

“The Fed may leave interest rates unchanged next month, but they’re not about to start cutting them,” Loewengart said.

Big U.S. companies, meanwhile, continue to report mostly better profits for the spring than analysts expected. That’s usually the case, and analysts had particularly low expectations coming into this reporting season. Higher costs for workers and other expenses are broadly eating into profit margins.

The Walt Disney Co. rose 4.9% after saying it would raise prices for some of its streaming services in hopes of boosting profitability. The entertainment giant reported stronger profit for the spring than analysts expected but weaker revenue.

Capri Holdings, which owns the Michael Kors, Versace and Jimmy Choo brands, soared 55.7% as Big Fashion continues to consolidate.

Tapestry, the company behind luxury handbag and accessories retailer Coach, said it was buying the company for roughly $8.5 billion. The deal would put it in better position to take on big European rivals, such as LVMH. Tapestry fell 15.9%

In the bond market, Treasury yields rose in the afternoon following an auction by the U.S. government of 30-year Treasury bonds. Yields have been generally rising recently amid concerns about heavy borrowing by the federal government. Those higher yields add pressure on the stock market.

The yield on the 10-year Treasury rose to 4.09% from 4.01% 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, ticked up to 4.81% from 4.80% late Wednesday.

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

Stocks in China held relatively steady after U.S. President Joe Biden signed an order to block and regulate high-tech U.S.-based investments going toward China.

ASX 200 expected to fall​

The Australian share market looks set to end the week in a subdued fashion despite Wall Street rising overnight. According to the latest SPI futures, the ASX 200 is expected to open 20 points or 0.25% lower this morning.

In the United States, stocks swung through shaky trading Thursday following the latest update on inflation across the U.S., only to end up roughly where they started.

The S&P 500 edged up by 1.12, or less than 0.1%, to 4,468.83. It was just the second winning day for the index in the last eight, but it had been up 1.3% in the morning before wobbling between small gains and losses.

The Dow Jones Industrial Average gained 52.79, or 0.2%, to 35,176.15 after giving up most of a morning gain of 455 points. The Nasdaq composite added 15.97, or 0.1%, to 13,737.99.

Market Watch

 

[bigdog]

Stock market today: Wall Street ends mixed, closing out another losing week

Stocks ended another choppy day of trading mixed, leaving the market with its second losing week in a row.

apnews.com

​

Wall Street ends mixed, closing out another losing week​

By ALEX VEIGA

A choppy day of trading on Wall Street ended Friday with an uneven finish for the major stock indexes, as mixed economic data stoked worries that the Federal Reserve’s work on bringing inflation to heel isn’t done.

The S&P 500 slipped 0.1% after wavering between small gains and losses most of the day. The benchmark index fell 0.3% for the week, its second consecutive losing week.

The Nasdaq composite fell 0.7%, reflecting a pullback in big tech companies. The Dow Jones Industrial Average eked out a 0.3% gain.

Stocks lost ground in the early going after the Labor Department reported Friday that its producer price index, which measures inflation before it hits consumers, rose 0.8% last month from July 2022. The latest figure followed a 0.2% year-over-year increase in June, which had been the smallest annual rise since August 2020

While modest, the increase in wholesale prices last month could help persuade the Federal Reserve that more rate increases are necessary to lower inflation to 2%, the central bank’s goal.

“Not surprisingly, today’s report offers the hawkish wing of the Fed more ammunition to advocate for another rate hike before the Fed is convinced it’s reached its terminal rate,” said Quincy Krosby, chief global strategist for LPL Financial.

High rates work to grind down inflation by slowing the overall economy and hurting prices for investments. The Fed has already pulled its federal funds rate to its highest level in more than two decades, up from virtually zero early last year.

The majority of traders on Wall Street are still betting the central bank will make no change to the fed funds rate at its policy meeting next month, according to data from CME Group.

Even so, the wholesale price data spooked the market, especially coming a day after the government released its latest consumer price index, which showed U.S. consumers paid prices that were 3.2% higher in July than a year earlier. That’s a touch milder than the 3.3% inflation rate economists expected to see and down sharply from last summer’s peak above 9%. Underlying trends for inflation were also within expectations.

“At this point, I think the market is underestimating (the Fed’s) willingness to hike in September,” said Ross Mayfield, investment strategy analyst at Baird. “This whole cycle has been an exercise in the market underestimating the Fed’s willingness to hike.”

Bond yields rose, including the two-year Treasury yield, which climbed to 4.89%. The yield, which closely tracks expectations for the Fed, had been at 4.80% right before the report’s release. The yield on the 10-year Treasury rose to 4.16% from 4.10% late Thursday. It helps set rates for mortgages and other important loans.

The bond market’s reaction to the inflation report is a signal some investors think the Fed will probably raise interest rates, said Sam Stovall, chief investment strategist at CFRA.

“Investors are still sort of weighing, ‘will they or won’t they in September?’” he said. “Uncertainty abounds.”

By all measures, inflation has cooled over the past year, though it remains above the Fed’s 2% target level. The moderating pace of price increases, combined with a resilient job market, has raised hopes that the Fed may achieve a difficult “soft landing”: Raising rates enough to slow borrowing and tame inflation without causing a painful recession.

Such hopes helped the S&P 500 rally a big 19.5% through the first seven months of the year, though critics say Wall Street too quickly formed a consensus that inflation is continuing to cool, the economy will avoid a recession and the Fed has already hiked rates for the final time this cycle.

The Fed has said it will make upcoming decisions on rates based on what data reports say, particularly those on inflation and the job market. Its main rate is already at its highest level in more than two decades.

Traders also weighed a preliminary reading in a University of Michigan survey that showed consumer sentiment down slightly from July, when it climbed to its highest level since October 2021. The latest consumer sentiment index was 71.2, down from 71.6 in July and below analysts’ consensus forecast of 71.3, according to FactSet.

Among its findings, the latest survey found that consumers’ expectations for inflation in the coming year edged lower. That’s good news, as the Fed has been adamant about wanting to avoid a vicious cycle where expectations for high inflation drive behavior that only worsens it.

All told, the S&P 500 fell 4.78 points to 4,464.05. The Nasdaq dropped 93.14 points to 13,644.85. The Dow added 105.25 points to 35,281.40.

The major indexes have lost some steam after standout rally through the first seven months of 2023, but remain solidly higher for the year. The S&P 500 is up 16.3%, the Nasdaq is up 30.4% and the Dow is up 6.4%.

Investors also had their eye on the latest batch of quarterly earnings reports Friday.

IonQ jumped 10.7% after the quantum computing technology company raised its full-year guidance after its fiscal second-quarter revenue topped Wall Street’s forecasts.

Flowers Foods rose 4.2% after price increases helped drive the bakery goods maker’s latest quarterly earnings and revenue, beating analysts’ projections.

Traders hammered Cano Health, sending its shares 73% lower, after the chain of primary care medical centers reported quarterly results that fell short of Wall Street’s estimates and said it believes its current liquidity isn’t enough to cover the next 12 months.

Several major retailers are set to report quarterly results next week, including Home Depot on Tuesday, Target on Wednesday and Walmart on Thursday.

In stock markets abroad, indexes declined in Europe and Asia.

 

[bigdog]

ASX 200 expected to fall again​

The Australian share market looks set to open the week lower following a reasonably poor finish to the last one on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 30 points or 0.4% lower on Monday.

A choppy day of trading on Wall Street ended Friday with an uneven finish for the major stock indexes, as mixed economic data stoked worries that the Federal Reserve’s work on bringing inflation to heel isn’t done.

The S&P 500 slipped 0.1% after wavering between small gains and losses most of the day. The benchmark index fell 0.3% for the week, its second consecutive losing week.

The Nasdaq composite fell 0.7%, reflecting a pullback in big tech companies. The Dow Jones Industrial Average eked out a 0.3% gain.

All told, the S&P 500 fell 4.78 points to 4,464.05. The Nasdaq dropped 93.14 points to 13,644.85. The Dow added 105.25 points to 35,281.40.

Market Watch