NYSE Dow Jones finished today at:

[bigdog]

Stock market today: Asian stocks mixed after China reports weak July data and cuts key interest rate

Asian stock markets are mixed after China reported weak July consumer and business activity and its central bank cut a key interest rate to shore up the struggling economy.

apnews.com

Wall Street drifts higher ahead of a big week for retailers​

By STAN CHOE

NEW YORK (AP) — Wall Street drifted higher Monday ahead of a week of reports showing how strong U.S. shoppers remain, amid hopes their spending can keep the economy out of a recession.

The S&P 500 added 25.67, or 0.6%, to 4,489.72, though slightly more stocks fell than rose within the index. The Dow Jones Industrial Average edged up by 26.23 points, or 0.1%, to 35,307.63 in a quiet day of trading. The Nasdaq composite gained 143.48, or 1.1%, to 13,788.33.

U.S. Steel jumped to one of the market’s bigger gains, up 36.8%. It said over the weekend that it rejected a buyout offer from Cleveland-Cliffs and that it’s heard multiple offers.

Cleveland-Cliffs rose 8.8% after it said it offered more than $7 billion in cash and stock for the steelmaker and that it’s ready to move on the offer immediately.

On the losing end of Wall Street was Nikola, which sank 6.7%. The zero-emission truck company recalled more than 200 of its electric vehicles after an investigation indicated a problem with a component in the battery pack could be the cause of a prior fire. It earlier suggested foul play could be at play in the truck fire at its headquarters.

Across the rest of the market, trading was relatively quiet. The S&P 500 has retrenched by 2.2% in August after soaring 19.5% through the first seven months of the year. Critics have been saying a pullback was due, arguing Wall Street too quickly and forcefully latched onto the belief that inflation would continue to cool and the economy would avoid a recession.

A bulwark keeping the economy afloat has been strong spending by U.S. consumers, which has been propped up by a remarkably resilient job market.

On Tuesday, the U.S. government will give the latest monthly update on sales at retailers across the country. Economists say it’s one of the week’s most important reports, and they expect it to show growth accelerated to 0.4% in July from 0.2% in June.

Several big retailers are also on the schedule this week to show how much profit they made in the latest quarter. Home Depot, Target, TJX and Walmart will all be reporting this week, as earnings reporting season for the spring hits its tail end.

Inflation has been moderating since hitting a peak last summer, but it remains high and is denting Americans of all incomes.

Conditions may be getting tougher in upcoming months, as rising interest rates make credit-card and other payments more expensive. Student loan payments will also weigh on consumers, and many have been spending down savings they had been built up during the pandemic.

Economists at Deutsche Bank say their expectations for a stumble in consumer spending during the last three months of the year are a reason they’re forecasting a mild recession lasting through the first half of next year. They, though, also say the resilience of U.S. consumers so far has raised the probability of no recession.

The week’s other big economic highlight will be Wednesday’s release of the minutes from the Federal Reserve’s last meeting. At that meeting, the central bank raised its main interest rate to the highest level in more than two decades. It was the Fed’s 11th increase in 17 months as it tries to corral the worst inflation since the 1980s.

The hope on Wall Street is that will prove to be the final hike of this cycle and the next move for the Fed will be to cut rates. That would provide some relief because high rates work to lower inflation by bluntly slowing the entire economy and hurting prices for stocks and other investments.

Traders broadly expect the Fed to hold rates steady at its next meeting in a little more than a month, according to data from CME Group. They also have some bets saying the Fed will begin cutting rates early next year.

That could prove to be too optimistic, according to David Mericle, economist at Goldman Sachs.

He’s forecasting rate cuts could begin in the spring of 2024, from April through June, as the Fed waits for inflation and the pressure pushing upward on it to ease enough. One potential hiccup could be that the Fed does not want rate cuts to boost prices for stocks and other investments too much.

Mericle said he still sees less of a risk of a recession than the market generally.

In the bond market, the yield on the 10-year Treasury rose to 4.19% from 4.16% 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 4.96% from 4.90%.

In stock markets abroad, indexes were mixed in Europe after mostly falling in Asia.

China’s waning economic recovery remains a focus for many investors, and stocks fell 1.6% in Hong Kong and 0.3% in Shanghai.

ASX 200 expected to edge higher​

The Australian share market is set to edge higher 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 1 point higher.

Wall Street drifted higher Monday ahead of a week of reports showing how strong U.S. shoppers remain, amid hopes their spending can keep the economy out of a recession.

The S&P 500 added 25.67, or 0.6%, to 4,489.72, though slightly more stocks fell than rose within the index. The Dow Jones Industrial Average edged up by 26.23 points, or 0.1%, to 35,307.63 in a quiet day of trading. The Nasdaq composite gained 143.48, or 1.1%, to 13,788.33.


Market Watch

 

[bigdog]

Stock market today: Asia shares decline as faltering Chinese economy sets off global slide

Asian shares have declined amid worries over discouraging data on China, as well as over the future of the U.S. economy.

apnews.com

Wall Street drops as faltering Chinese economy sets off global slide​

By STAN CHOE

NEW YORK (AP) — A sharp drop for Wall Street capped a day of declines around the world Tuesday after discouraging data on China raised worries about the global economy.

The S&P 500 slumped 1.2% for one of its worst drops since the spring after data showed a deepening slump for the world’s second-largest economy. The Dow Jones Industrial Average tumbled 361 points, or 1%, and the Nasdaq composite sank 1.1%.

Coming into this year, the expectation was that China’s economy would grow enough after the government removed anti-COVID restrictions to prop up a global economy weakened by high inflation. But China’s recovery has faltered so much that it unexpectedly cut a key interest rate on Tuesday and skipped a report on how many of its younger workers are unemployed.

Worries about the knock-on effects for the rest of the global economy are weighing on Wall Street, where stocks have already been retrenching in August. The pullback follows a gangbusters first seven months of the year that critics called overdone.

In the U.S., the economy has remained more resilient than expected despite higher interest rates. A report on Tuesday showed growth for sales at U.S. retailers accelerated by more in July than economists expected.

“U.S. retail sales are charging ahead, and a lot of that may be on charge cards,” said Brian Jacobsen, chief economist at Annex Wealth Management. “Still, the U.S. consumer is showing few signs of slowing down.”

The strong retail sales report raises hopes that the U.S. economy can keep growing and avoid a long-predicted recession. But on the downside for markets, it could also raise the Federal Reserve’s resolve to keep interest rates high in order to fully grind down inflation.

The Fed has already hiked its key interest rate to the highest level in more than two decades. High rates work by bluntly dragging on the entire economy and hurting prices for investments.

“Numbers like today’s just make it more likely that rates will remain higher for longer, even if the Fed doesn’t hike them next month,” said Mike Loewengart, head of model portfolio construction at Morgan Stanley Global Investment Office.

Treasury yields initially rose following the retail sales report, approaching their highest levels since the 2007-09 Great Recession, before jostling up and down.

A faltering Chinese economy could mean less demand for oil and other commodities.

The price for a barrel of U.S. crude oil dropped $1.52 to $80.99. Prices also fell for Brent crude, the international standard, and for copper.

The declines meant stocks of energy producers were among the biggest losers in the S&P 500. Exxon Mobil’s 2.6% drop was one of the heavier weights on the index.

Banks also sank, continuing a rocky run since the high-profile failures of several during the spring that were caused in part by high interest rates.

Smaller and midsized banks have been under particular scrutiny from investors and credit-rating analysts, and Comerica, Zions Bancorp. and Citizens Financial Group all fell at least 4.4% for some of the sharper losses in the S&P 500.

The largest loss came from Discover Financial Services. It dropped 9.4% after it said its CEO is stepping down, effective immediately.

Elsewhere on Wall Street, more reports on corporate profits that came in better than expected helped to limit the market’s losses.

Home Depot gained 0.7% after it topped expectations for both revenue and profit, though it’s feeling the effects of much higher interest rates. The home improvement retailer said it’s seeing continued pressure on some types of big-ticket projects.

Stocks of homebuilders were also among the limited number of winners after Warren Buffett’s Berkshire Hathaway disclosed it bought stakes in several. Other investors often try to copy the famed investor’s moves, and D.R. Horton rose 2.9%. It was one of just 43 stocks in the S&P 500 that rose, as more than 90% within the index fell.

All told, the S&P 500 fell 51.86 points to 4,437.86. The Dow dropped 361.24 to 34,946.39, and the Nasdaq sank 157.28 to 13,631.05.

In stock markets abroad, indexes slumped in Europe after falling 1% in Hong Kong and 0.1% in Shanghai.

Pressures are appearing worldwide. Also Tuesday, Russia’s central bank raised its main lending rate in an emergency move to strengthen the ruble after the currency reached its lowest value since early in the war with Ukraine. In the U.K., data showed wages for workers are growing at a strong pace, which threatens to add upward pressure on its already high inflation.

Japanese stocks were an exception. The Nikkei 225 rose 0.6% after Japan reported unexpectedly strong growth in its economy during the spring.

In the bond market, the yield on the 10-year Treasury rose to 4.21% from 4.20% late Monday. It helps set rates for mortgages and other important loans.

The two-year Treasury yield, which more closely follows expectations for the Fed, fell to 4.94% from 4.97%.

ASX 200 expected to sink​

The Australian share market looks set to sink 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 75 points or 1% lower this morning.

A sharp drop for Wall Street capped a day of declines around the world Tuesday after discouraging data on China raised worries about the global economy.

All told, the S&P 500 fell 51.86 points to 4,437.86. The Dow dropped 361.24 to 34,946.39, and the Nasdaq sank 157.28 to 13,631.05

The S&P 500 slumped 1.2% for one of its worst drops since the spring after data showed a deepening slump for the world’s second-largest economy. The Dow Jones Industrial Average tumbled 361 points, or 1%, and the Nasdaq composite sank 1.1%.


Market Watch

 

[bigdog]

Stock market today: Asia follows Wall Street lower after Fed's notes dent hopes of rate hikes ending

Asian stocks have followed Wall Street lower after notes from a U.S. Federal Reserve meeting dented hopes interest rate hikes are finished.

apnews.com

Wall Street falls as the bond market cranks up the pressure​

By STAN CHOE and ALEX VEIGA

Wall Street weakened Wednesday to worsen what’s already been a messy August.

The S&P 500 fell 33.53, or 0.8%, to 4,404.33, following up on its prior day’s tumble of 1.2%. The Dow Jones Industrial Average lost 180.65 points, or 0.5%, to 34,765.74, and the Nasdaq composite dropped 156.42, or 1.1%, to 13,474.63.

Increased pressure came from the bond market, where yields have recently neared their highest levels since the Great Recession sent interest rates collapsing. Yields climbed more following the afternoon release of the minutes from the Federal Reserve’s latest meeting.

The minutes suggested Fed officials are unsure about their next move after catapulting the main interest rate they control to its highest level in more than two decades. Hopes had been rising among investors that last month’s rate hike by the Fed would prove to be its last.

High rates work to grind down inflation by bluntly slowing the entire economy and hurting investment prices. The Fed’s minutes showed that officials still don’t think the job on inflation is done but that they also acknowledge the risk of going too far and torpedoing the economy. They said they’ll make upcoming decisions based on what data reports about inflation and the economy tell them.

Some analysts took the minutes as a suggestion that another rate hike is possible, while others said it shows the Fed is likely done hiking.

“Ultimately there were no major surprises in the minutes, as the Fed is expected to remain data dependent when determining the path of monetary policy through the end of the year,” said Sam Millette, fixed income strategist for Commonwealth Financial Network.

Big technology stocks and other investments seen as particularly vulnerable to higher rates were some of the day’s heaviest weights on indexes. Tesla fell 3.2%. Facebook’s parent, Meta Platforms, dropped 2.5%, and Amazon fell 1.9%

Wall Street has generally been retrenching this month on several concerns, including worries that torrid gains made this year through July were overdone and that interest rates may stay high for longer.

A surprisingly strong report on sales at U.S. retailers helped cause Tuesday’s slide in stocks, as it suggested upward pressure on inflation still exists. While strong economic reports calm long-held worries about a possible recession, they could also end up keeping rates higher for longer.

Data released Wednesday showed that U.S. industrial production improved by more than economists expected last month. Homebuilders also broke ground on more homes.

Treasury yields have been generally climbing as reports paint a picture of a still solid economy. That pressures stocks because when safe bonds are paying more in interest, investors feel less pressure to pay high prices for stocks and other risky investments.

The yield on the 10-year Treasury rose to 4.26% from 4.22% late Tuesday. It’s once again close to where it was when the 2007-09 Great Recession sent interest rates crashing. The 10-year yield helps set rates for mortgages and other important loans.

The 10-year Treasury Inflation Protected Security, which takes inflation into account, is at its highest level since 2009, according to Tradeweb.

On Wall Street, Intel’s stock fell 3.6% after it and Tower Semiconductor agreed to call off Intel’s $5.4 billion buyout of the Israeli chip maker. The deal faced resistance from Chinese regulators.

Agilent Technologies fell 3.4% despite reporting stronger profit for the latest quarter than analysts expected. Its forecasts for upcoming results, including revenue for the full year, fell short of expectations. It pointed to a challenging economy, particularly in China.

Coinbase Global’s stock swung after it said it plans to soon offer futures trading for cryptocurrencies to eligible U.S. customers after receiving federal regulatory approval. It rallied in the morning before finishing with a dop of 0.2%.

Target and TJX, the company behind T.J. Maxx and Marshalls, helped to limit the market’s losses. Target rose 3%, and TJX climbed 4.1% after both reported stronger profit for the spring than analysts expected.

Progressive jumped 8.9% for the biggest gain in the S&P 500 after reporting its results for July, and other insurers also rallied to help lead the market.

In stock markets abroad, indexes were mixed in Europe. Stocks were down more sharply in Asia, where worries are high about a faltering economic recovery in China.

Stock indexes fell 1.4% in Hong Kong, 1.8% in Seoul, 1.5% in Tokyo and 0.8% in Shanghai.

Coming into this year, the expectation was that China’s economy would grow enough after the government removed anti-COVID restrictions to prop up a global economy weakened by high inflation. But China’s recovery has faltered so much that it unexpectedly cut a key interest rate on Tuesday and skipped a report on how many of its younger workers are unemployed.

ASX 200 expected to fall again​

The Australian share market is expected to fall again on Thursday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 23 points or 0.3% lower this morning.
Wall Street weakened Wednesday to worsen what’s already been a messy August.

The S&P 500 fell 33.53, or 0.8%, to 4,404.33, following up on its prior day’s tumble of 1.2%. The Dow Jones Industrial Average lost 180.65 points, or 0.5%, to 34,765.74, and the Nasdaq composite dropped 156.42, or 1.1%, to 13,474.63.

Increased pressure came from the bond market, where yields have recently neared their highest levels since the Great Recession sent interest rates collapsing. Yields climbed more following the afternoon release of the minutes from the Federal Reserve’s latest meeting.
Market Watch

 

[bigdog]

Stock market today: Asian shares mostly decline after Wall Street drop on higher bond yields

Asian shares have slipped as rising yields in the bond market on Wall Street set off expectations that high interest rates would continue in the U.S.

apnews.com

Wall Street weakens again as higher bond yields keep biting​

By STAN CHOE

NEW YORK (AP) — Wall Street fell for a third straight day Thursday as rising yields in the bond market keep cranking up the pressure.

The S&P 500 sank 33.97, or 0.8%, to 4,370.36, and August is on track to be its worst month of the year by far. The Dow Jones Industrial Average dropped 290.91 points, or 0.8%, to 34,474.83, and the Nasdaq composite fell 157.70, or 1.2%, to 13,316.93.

The losses were widespread. Some of the hardest hit were high-growth stocks seen as the most vulnerable to higher interest rates. Meta Platforms sank 3.1%, and Tesla dropped 2.8%. Apple fell 1.5% and was the heaviest weight on the S&P 500.

Stocks broadly have been retreating in August following a torrid first seven months of the year. That’s in part because a swift rise in bond yields is forcing a reassessment of how much to pay for stocks.

The 10-year Treasury, which is the centerpiece of the bond market, is now yielding 4.28% after touching its highest level since October in the morning.

If it reaches 4.34%, it will be at a level unseen since 2007, according to Tradeweb. That’s before the financial crisis and Great Recession caused yields to collapse to record lows. The 10-year Treasury was yielding less than 0.70% three years ago.

Higher yields are good for bond investors, who get fatter payouts for their investments. But it hurts stock prices because investors are suddenly less inclined to pay high prices for them and other investments that aren’t as steady as bonds.

Higher yields also mean borrowers have to pay more to get cash, which can crimp corporate profits and cause unforeseen things to break in the system, like the three high-profile U.S. bank failures that shook markets this spring.

Homebuyers are feeling the sting. The average rate on a 30-year mortgage hit its highest level this week in more than 20 years.

Yields have been on the rise as more reports show the U.S. economy remains remarkably resilient. On the upside for markets, the data means the economy has been able to avoid a long-predicted recession. But on the downside, it could also keep upward pressure on inflation. That would give the Federal Reserve reason to keep interest rates higher for longer.

More data came in Thursday showing a firm U.S. economy.

Fewer workers applied for unemployment benefits last week than economists expected. It’s the latest signal that the job market continues to be solid.

A survey of manufacturers in the mid-Atlantic region also unexpectedly showed growth, when economists were expecting another month of contraction. Manufacturing has been one of the areas of the economy hit hardest by much higher interest rates.

“The labor market continues to be resilient—maybe too resilient for the Fed’s liking,” said Mike Loewengart, head of model portfolio construction at Morgan Stanley Global Investment Office.

Other strong economic data recently, including a report showing an acceleration in sales growth at U.S. retailers, mean the Fed could hike interest rates again at some point, he said. Hopes had been rising on Wall Street that the Fed could be done after it raised its main rate last month to the highest level in more than two decades.

Traders had also been hoping the Fed would begin cutting rates early next year. Such a move would be a relief for markets because high rates work to lower inflation by slowing the entire economy and hurting prices for investments.

Minutes from the Fed’s latest meeting released Wednesday suggested officials are unsure of their next move. They say it will depend on what upcoming reports about inflation and the job market say.

Inflation has cooled considerably from its peak above 9% last summer. But consumers still paid prices that were 3.2% higher in July than a year earlier, and economists say the last stretch to get inflation down to the Fed’s 2% target may prove to be the most difficult.

A stronger economy would burn more fuel, and oil prices rose Thursday to recover some of their slide from earlier in the week. That helped propel stocks of energy producers to some of the rare gains within the S&P 500.

Exxon Mobil rose 1.9%, and ConocoPhillips gained 1.8%.

Cisco Systems was a bright spot within the tech sector, rising 3.3%. The maker of networking equipment reported stronger profit and revenue for the latest quarter than analysts expected.

Walmart likewise topped expectations, while raising its forecast for full-year results. But its stock swung from an early gain to a loss of 2.2%.

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

Worries about a faltering economic recovery in China have weighed on stocks in Hong Kong and Shanghai in particular recently, though they were steadier Thursday.

ASX 200 expected to fall​

The Australian share market looks set to end the week in a disappointing fashion following another poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 28 points or 0.30% lower this morning.

Wall Street fell for a third straight day Thursday as rising yields in the bond market keep cranking up the pressure.

The S&P 500 sank 33.97, or 0.8%, to 4,370.36, and August is on track to be its worst month of the year by far. The Dow Jones Industrial Average dropped 290.91 points, or 0.8%, to 34,474.83, and the Nasdaq composite fell 157.70, or 1.2%, to 13,316.93.

The losses were widespread. Some of the hardest hit were high-growth stocks seen as the most vulnerable to higher interest rates. Meta Platforms sank 3.1%, and Tesla dropped 2.8%. Apple fell 1.5% and was the heaviest weight on the S&P 500.

Market Watch

 

[bigdog]

Stock market today: Wall Street's dismal August drags on with 3rd straight losing week

Wall Street limped to the finish line of its third losing week in a row. The S&P 500 barely budged Friday, ending the day down by less than 0.1%.

apnews.com

Wall Street’s dismal August drags on with 3rd straight losing week​

By STAN CHOE

NEW YORK (AP) — Wall Street limped to the finish line of its third losing week in a row on Friday.

The S&P 500 barely budged as it ended the week with a loss of more than 2%, like other U.S. indexes. It edged down by 0.65, or less than 0.1%, to 4,369.71.

The Dow Jones Industrial Average added 25.83 points, or 0.1%, to 34,500.66, and the Nasdaq composite slipped 26.16, or 0.2%, to 13,290.78.

August has been rough for the stock market, which has given back more than a quarter of the S&P 500’s torrid gains for the year’s first seven months. That’s in part because a swift rise in yields has forced investors to reconsider whether stocks got too expensive, particularly after critics warned the market rose too far, too quickly.

Stocks held a bit steadier Friday after yields eased a bit. After topping 4.30% a day before and nearing its highest level since 2007, the 10-year Treasury yield fell back to 4.24%.

Stock markets elsewhere in the world sank more sharply, as higher yields globally crank up the pressure. Higher yields mean bonds are paying out more in interest, but they also make investors less willing to pay high prices for stocks and other investments that are less stable than bonds.

The narrative in the stock market may be poised to flip from “buy the dip” during the first half of the year, when traders saw moments of weakness as opportunities to buy low, to “sell the rip” in the second half of the year, according to Bank of America investment strategist Michael Hartnett.

In a BofA Global Research report, he pointed specifically to how the trend may follow Microsoft, one of the big seven tech-oriented stocks responsible for the majority of the S&P 500’s gains earlier this year

The group called the “Magnificent Seven” has been under pressure recently because technology and other high-growth stocks are seen as some of the biggest losers of higher rates. Several are down more than 10% from their highs earlier this year.

Microsoft slipped 0.1% Friday. Alphabet dropped 1.9%, and Tesla sank 1.7%.

Yields are on the march in part because a string of data has shown the U.S. economy remains resilient. While that suggests the economy may avoid a long-predicted recession, it also raises expectations for the Federal Reserve to keep its main interest rate higher for longer.

The Fed last month hiked the overnight interest rate it controls to the highest level since 2002, as it tries to smother high inflation. High rates work by slowing the economy bluntly and hurting prices for investments.

Traders had been hoping that the Fed was done hiking rates and would begin cutting them early next year. Inflation has already come down considerably since its peak last summer.

But economists say the last bit to get inflation down to the Fed’s target may prove the most difficult. And a suite of reports on the economy recently, including surprisingly strong sales at U.S. retailers, has suggested upward pressure still exists on inflation. Traders have since ratcheted back their expectations for rate cuts through the end of 2024, according to data from CME Group.

The next big event for markets could be Fed Chair Jerome Powell’s speech late next week at an event at Jackson Hole, Wyoming.

Besides making borrowing more expensive for everyone from homebuyers to multinational corporations, higher yields make the stock market look more expensive unless companies suddenly earn much more in profits. And while companies have reported better earnings for the spring than feared, it hasn’t been enough to stop the market’s slide.

Ross Stores jumped 5% for the largest gain in the S&P 500 after it reported stronger results for the latest quarter than Wall Street had forecast.

Applied Materials also reported stronger profit than expected, and its stock rose 3.7%

Estee Lauder fell 3.3% despite reporting stronger profit and revenue than expected. Its profit forecast for its upcoming fiscal year fell short of Wall Street’s estimates.

Even after their August swoons, major U.S. stock indexes still look expensive, said Mark Haefele, chief investment officer at UBS Global Wealth Management, “and a wide set of outcomes for markets is still possible.”

In markets abroad, stocks slid across Europe and Asia.

Worries have been high about China, whose economic recovery since removing anti-COVID restrictions has faltered. Property developers in the world’s second-largest economy are under particularly heavy scrutiny.

Evergrande Group, a giant real-estate developer, is asking a U.S. court to approve a restructuring plan for foreign bondholders as it tries to avoid defaulting on $340 billion in debt.

Stocks in Hong Kong tumbled 2.1%, and the Hang Seng index is already down 10.6% in August alone.

 

[bigdog]

ASX 200 expected to fall​

The Australian share market looks set to open the week lower following a mixed finish on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 23 points or 0.3% lower on Monday.
NEW YORK (AP) — Wall Street limped to the finish line of its third losing week in a row on Friday.

The S&P 500 barely budged as it ended the week with a loss of more than 2%, like other U.S. indexes. It edged down by 0.65, or less than 0.1%, to 4,369.71.

The Dow Jones Industrial Average added 25.83 points, or 0.1%, to 34,500.66, and the Nasdaq composite slipped 26.16, or 0.2%, to 13,290.78.
Market Watch

 

[bigdog]

Stock market today: Asian stocks follow Wall St higher ahead of Federal Reserve conference

Asian stocks have followed Wall Street higher as traders wait for signs of interest rate plans from this week’s Federal Reserve conference.

apnews.com

Wall Street holds firmer after its three-week slide as Big Tech stocks rebound​

By STAN CHOE

NEW YORK (AP) — Wall Street held a bit firmer Monday following a painful three-week losing streak.

The S&P 500 rose 30.06, or 0.7%, to 4,399.77 for its first gain in five days. Rallies for Nvidia, Microsoft and other Big Tech stocks lifted the index even though the majority of stocks within it fell.

The Dow Jones Industrial Average slipped 36.97 points, or 0.1%, to 34,463.69, and the Nasdaq composite climbed 206.81, or 1.6%, to 13,497.59

It was a return to form for Nvidia, Tesla and other market behemoths, which have struggled recently under the weight of rising yields in the bond market. The yield on the 10-year Treasury rose again Monday to touch its highest level since 2007 after briefly climbing above 4.34%. That’s up from 4.25% late Friday and from less than 0.60% in 2020.

Higher yields are good for people buying bonds, who get paid more in interest for their investments. But it also makes investors less willing to pay high prices for stocks and other investments that are less steady.

A swift rise for yields globally has shaken stock markets worldwide. It’s added to concerns that stock prices overshot during their strong run earlier this year and that signals keep showing China’s economic recovery is faltering.

This week’s main economic event is likely to be a speech on Friday by Federal Reserve Chair Jerome Powell. The Jackson Hole, Wyoming, setting for his speech has been the site of major policy announcements in the past by the Fed, and it’s one of the most important events each year for central bankers globally.

The worry is that Powell will dash investors’ hopes that the Fed has already hiked interest rates for the final time and that its next move will be to cut rates early next year.

The Fed has already pulled its main interest rate to its highest level since 2001 in an effort to grind down high inflation. High rates do that by slowing the entire economy bluntly and hurting prices for investments.

For all the anticipation for Powell’s speech, he may not end up sending a strong signal out of Jackson Hole, according to Goldman Sachs.

In the minutes from its last policy meeting in July, the Fed indicated it was unsure about its next move. It said it will make upcoming decisions on rates based on what incoming data say about inflation and the economy.

A big report on each of those topics is due the week after Powell’s speech. One is the latest update on the Fed’s preferred measure of inflation, and the other is the monthly jobs report. “The Fed will likely wait to be informed by these new data before changing their current posture,” Goldman Sachs’ Lexi Kanter and Michael Cahill wrote in a report.

Economists at Bank of America, meanwhile, say there’s a chance Powell will say every upcoming meeting of the Fed has a possibility to see a hike in interest rates given how strong recent economic reports have been.

“We think Powell’s tone at Jackson Hole will be less balanced than the July FOMC minutes,” they wrote in a BofA Global Research report.

The economy has remained resilient despite much higher interest rates. While the solid job market and spending by U.S. households ease long-held worries about a possible recession, they could also add upward pressure on inflation.

Another big event for the market will be Nvidia’s profit report scheduled for Wednesday. The chip maker’s stock has flown higher this year, more than tripling on excitement about demand for artificial-intelligence technology.

Nvidia’s report on Wednesday may offer a hint about whether all the furor around it and other AI-related stocks was deserved. It jumped 8.5% Monday. Microsoft, another AI winner, rose 1.7%. They were two of the strongest forces lifting the S&P 500.

Along with them was Tesla, another high-growth stock that’s been hurt recently by the threat of higher rates. It rose 7.3% to recover some of its 11% loss from last week.

Security software maker Palo Alto Networks jumped 14.8% for the biggest gain in the S&P 500 after reporting better profit for the spring than analysts expected.

On the losing end of Wall Street was Nikola, which has recalled more than 200 electric trucks following a couple of battery fires. It said it can’t guarantee when it will resume selling the trucks and that it will raise $325 million by selling convertible bonds. Nikola’s stock fell 23%.

Besides the possibility of higher rates for longer, concerns about China’s economic recovery have also weighed on markets globally.

Hong Kong’s Hang Seng tumbled another 1.8% and is down 12.2% for August. Stocks also fell 1.2% in Shanghai. China cut a bank lending rate, but the move fell short of what some analysts expected.

ASX 200 expected to rise​

The Australian share market is set to rebound 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 17 points or 0.3% higher.
Wall Street held a bit firmer Monday following a painful three-week losing streak.

On Wall Street, the Dow Jones was down 0.1%, but the S&P 500 rose 0.7% and the NASDAQ climbed 1.6%.

The S&P 500 rose 30.06, or 0.7%, to 4,399.77 for its first gain in five days. Rallies for Nvidia, Microsoft and other Big Tech stocks lifted the index even though the majority of stocks within it fell.

The Dow Jones Industrial Average slipped 36.97 points, or 0.1%, to 34,463.69, and the Nasdaq composite climbed 206.81, or 1.6%, to 13,497.59.


Market Watch

 

[bigdog]

Stock market today: Asian shares are mixed ahead of Fed Chair speech and Nvidia earnings

Asian markets are trading mixed ahead of Fed Chair Jerome Powell’s highly anticipated speech later in the week.

apnews.com

Wall Street ticks lower and momentum stalls after a rare August gain​

By STAN CHOE

NEW YORK (AP) — Wall Street ticked lower Tuesday ahead of two potentially market-shaking events later in the week.

The S&P 500 slipped 12.22, or 0.3%, to 4,387.55 to give back some of its rare August gain from a day before, which was powered by Big Tech stocks. The Dow Jones Industrial Average fell 174.86 points, or 0.5%, to 34,288.83, and the Nasdaq composite edged up by 8.28, or 0.1%, to 13,505.87.

Stocks have struggled this month as yields have shot upward in the bond market, which cranks up the pressure on other investments. The yield on the 10-year Treasury eased a bit Tuesday, a day after reaching its highest level since 2007.

Nvidia, one of Wall Street’s most influential stocks, swung from an early gain to a loss of 2.8% ahead of its earnings report on Wednesday, one that could be pivotal for the stock market.

The chipmaker has been at the center of Wall Street’s frenzy around artificial-intelligence technology, which investors believe will create immense profits for companies. Nvidia’s stock has already more than tripled this year, and it likely faces a high a bar to justify the huge move.

Analysts expect Nvidia to say on Wednesday that its revenue swelled by nearly $4.5 billion to $11.19 billion during the spring from a year earlier.

Dick’s Sporting Goods plunged 24.1% after its profit for the latest quarter fell well short of expectations. It also cut its forecast for earnings over the full year, citing “inventory shrink.” That’s a term the industry uses to refer to theft and other losses of goods that never become sales.

Macy’s fell 14.1% despite reporting stronger results for the latest quarter than Wall Street expected. It also stood by its financial forecasts for the full year, though it said economic conditions look uncertain.

On the winning side of Wall Street, Lowe’s gained 3.7% after reporting stronger profit for the latest quarter than analysts expected. The home improvement retailer also stood by its forecast for results over the full year, and it said it gave over $100 million in bonuses to its front-line workers.

Microsoft edged up by 0.2% as U.K. regulators consider a revamped bid by the company to buy video game maker Activision Blizzard, which would be one of the biggest deals in tech history.

In the bond market, the 10-year Treasury yield ticked down to 4.32% from 4.34% late Monday. It’s the center of the bond market and helps set rates for mortgages and other important loans.

The two-year Treasury yield, which moves more on expectations for the Federal Reserve, rose to 5.04% from 5.00%.

More fireworks could come later this week, when Fed Chair Jerome Powell is scheduled to give a highly anticipated speech. He’ll be speaking Friday at an event in Jackson Hole, Wyoming, the site of several major policy announcements by the Fed in the past.

Based on the action in markets for volatility, traders are bracing for the Jackson Hole speech to be a bigger potential deal than Nvidia’s earnings report, according to Barclays strategists led by Stefano Pascale and Anshul Gupta.

In recent years, everything from commodities to bonds to foreign stocks has become more vulnerable to outsized moves around Jackson Hole, the strategists say.

The Fed has already hiked its main interest rate to the highest level since 2001 in hopes of grinding high inflation down to its target of 2%. High rates work by slowing the entire economy bluntly and hurting prices for investments.

Inflation has come down considerably from its peak above 9% last summer, but economists say getting the last percentage point of improvement may be the most difficult.

The hope among traders is that Powell may indicate the Fed is done with hiking interest rates for this cycle and that it could begin cutting them next year. But strong reports on the economy recently have hurt such hopes. A solid job market and spending by U.S. households could be feeding more fuel into pressures that push upward on inflation.

In stock markets abroad, indexes were mostly higher. Stocks rose in China to recover some of their sharp losses driven by worries about its faltering economic recovery.

The Hang Seng in Hong Kong climbed 1%, though it remains down 11.4% for August so far. Stocks in Shanghai added 0.9% to trim their loss for the month to 5.2%.

ASX 200 expected to fall

The Australian share market looks set to fall 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 17 points or 0.3% lower this morning.

Wall Street ticked lower Tuesday ahead of two potentially market-shaking events later in the week.

The S&P 500 slipped 12.22, or 0.3%, to 4,387.55 to give back some of its rare August gain from a day before, which was powered by Big Tech stocks. The Dow Jones Industrial Average fell 174.86 points, or 0.5%, to 34,288.83, and the Nasdaq composite edged up by 8.28, or 0.1%, to 13,505.87.

Stocks have struggled this month as yields have shot upward in the bond market, which cranks up the pressure on other investments. The yield on the 10-year Treasury eased a bit Tuesday, a day after reaching its highest level since 2007.


Market Watch

 

[bigdog]

Stock market today: Asian shares mostly rise after Wall Street rally

Asian shares are mostly rising after Wall Street rallied to its best day since June after pressures from the bond market relaxed a bit.

apnews.com

Wall Street rallies as pressure from the bond market eases​

By STAN CHOE

NEW YORK (AP) — Wall Street rallied to its best day since June on Wednesday after pressure that’s built up on stocks from the bond market relaxed a bit.

The S&P 500 climbed 1.1% to trim its loss for what’s been a dismal August so far. The Dow Jones Industrial Average rose 184 points, or 0.5%, and the Nasdaq composite jumped 1.6%.

Big Tech stocks and others that benefit from easier interest rates led the way. They got some relief as the 10-year Treasury yield eased back further from its highest level since 2007 after a report suggested the U.S. economy may be cooling.

A 2.2% gain for Apple’s stock and 1.4% climb for Microsoft shares were two of the strongest forces pushing the S&P 500 upward.

Nvidia, another one of the market’s most influential stocks, rallied 3.2% ahead of its highly anticipated profit report. Expectations were immense for the report, which came out after trading ended for the day, and it still managed to blow past forecasts.

Nvidia stunned Wall Street three months ago by predicting a boom in artificial-intelligence technology would mean it would make roughly $11 billion in revenue during the three months through July.

The announcement set off a rush across Wall Street. Stocks of AI-related companies soared, and investors tried to count how many times a CEO could mention “AI” in an earnings call. Nvidia’s stock more than tripled this year so far, and it will need to meet the much higher expectations around it to justify its big move.

Nvidia’s report on Wednesday appeared to pass the bar. Its revenue for the latest quarter ended up more than doubling to $13.51 billion from year-earlier levels. And its forecast for revenue in the current quarter also blew past Wall Street’s expectations. Its stock rose in afterhours trading.

Nvidia and a just a handful of other companies were behind the majority of the S&P 500’s gains earlier this year. Many of those “Magnificent Seven” stocks also benefited from the AI frenzy.

They’ve been under more pressure recently, as yields crank higher in the bond market. When bonds are paying more in interest, investors feel less need to pay high prices for stocks and other investments that can swing sharply in price.

Treasury yields eased Wednesday, taking off some of that pressure. The 10-year Treasury yield fell to 4.18% from 4.33% late Tuesday.

A preliminary reading of U.S. services and manufacturing businesses eased to a six-month low, sending yields down across the bond market. The measure of output from S&P Global Market Intelligence still indicated growth, but less as inflation and higher interest rates bite into activity.

“A near-stalling of business activity in August raises doubts over the strength of US economic growth in the third quarter,” said Chris Williamson, chief business economist at S&P Global Market Intelligence

For now, softer-than-expected data on the economy may be good for financial markets. That’s because a string of surprisingly strong reports recently has raised expectations for the Federal Reserve to keep interest rates higher for longer. The Fed has already hiked its main interest rate to the highest level since 2001 in hopes of grinding down high inflation.

High rates work by slowing the entire economy and hurting prices for investments, and they’ve helped inflation to ease since its peak above 9% last summer. But a still-solid job market and spending by U.S. households threaten to make it difficult for inflation to come down the last percentage point to the Fed’s target of 2%.

That’s why the main event of the week for markets could be a speech on Friday by Fed Chair Jerome Powell. He will be speaking at a Jackson Hole, Wyoming, event that’s been the setting for major policy announcements by the Fed in the past.

The hope among traders has been that the Fed has already hiked rates for the final time this cycle and that it will begin cutting rates early next year. But such hopes have been diminishing with each stronger-than-expected report on the economy that’s come in recently.

The two-year Treasury yield, which closely tracks expectations for the Fed, has also jumped recently, though it eased back like the 10-year yield on Wednesday. It fell to 4.94% from 5.05%

On Wall Street, Toll Brothers rose 3.9% after the homebuilder reported stronger profit for the latest quarter than expected. It had earlier been struggling with the entire housing industry as high mortgage rates ground down activity.

Advance Auto Parts climbed 3.1% after it named a new CEO and reported stronger revenue for the spring than analysts expected. Its profit, though, fell short of forecasts.

Foot Locker tumbled 28.3% after reporting weaker profit for the latest quarter than expected. The company also paused its dividend and cut its financial forecasts for the full year, describing a “still-tough consumer backdrop.”

Shares of companies that make products sold in Foot Locker stores were also weak. Nike fell 2.7%.

All told, the S&P 500 gained 48.46 points to 4,436.01. The Dow rose 184.15 to 34,472.98, and the Nasdaq climbed 215.16 to 13,721.03.

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

ASX 200 expected to rise​

The Australian share market is expected to rise again on Thursday following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 36 points or 0.5% higher this morning. In the United States,

Wall Street rallied to its best day since June on Wednesday after pressure that’s built up on stocks from the bond market relaxed a bit.

The S&P 500 climbed 1.1% to trim its loss for what’s been a dismal August so far. The Dow Jones Industrial Average rose 184 points, or 0.5%, and the Nasdaq composite jumped 1.6%.

All told, the S&P 500 gained 48.46 points to 4,436.01. The Dow rose 184.15 to 34,472.98, and the Nasdaq climbed 215.16 to 13,721.03.

Big Tech stocks and others that benefit from easier interest rates led the way.

Market Watch

 

[bigdog]

Stock market today: Asian shares mostly decline ahead of Federal Reserve’s Powell speech

Asian shares are mostly falling, discouraged by a Wall Street slump that followed a blowout profit report from Nvidia and mixed reports on the U.S. economy.

apnews.com

Wall Street wilts as yields rise ahead of speech by Federal Reserve’s Powell​

By STAN CHOE

NEW YORK (AP) — Wall Street slumped Thursday, despite a blowout profit report from Nvidia, following some mixed reports on the U.S. economy.

The S&P 500 dropped 1.3% for its worst loss in three weeks. It nearly wiped out its gain for the week, which had been a bright spot in what’s been a rough August.

The Dow Jones Industrial Average dropped 373 points, or 1.1%, and the Nasdaq composite tumbled 1.9%.

Stocks sank as Treasury yields stabilized following their tumble a day earlier. High yields in the bond market have been upping the pressure because they make investors less willing to pay high prices for stocks and other risky investments. They may be set to go even higher, depending on what the head of the Federal Reserve says in a speech scheduled for Friday.

The yield on the 10-year Treasury rose to 4.23% from 4.20% late Wednesday. It fell there from 4.33% a day before, close to its highest level since 2007.

Yields found some traction following a couple mixed reports on the U.S. economy. One showed that fewer U.S. workers applied for unemployment benefits last week. It’s the latest sign that the job market remains remarkably resilient despite high interest rates.

Another report said orders for long-lasting manufactured goods slumped by more last month than economists expected. That could be a signal that conditions are worsening for the struggling manufacturing industry, but orders actually rose more than expected for the month after ignoring airplanes and other transportation equipment.

For now, weaker-than-expected reports on the economy may counterintuitively be more welcome in financial markets. The economy has managed to avoid a long-predicted recession, but the fear is that it’s so solid that it will keep upward pressure on inflation.

The Federal Reserve has already raised its main interest rate to the highest level since 2001 in hopes of grinding down high inflation. High rates work to do that by slowing the entire economy and hurting prices for investments.

Hope had built that the Fed’s latest rate hike in July may prove to be the last of this cycle, after inflation cooled considerably since peaking above 9% last summer. Traders also have made bets for the Fed to begin cutting rates early next year.

But a series of stronger-than-expected reports on the economy has diminished those hopes. That’s why Fed Chair Jerome Powell’s speech on Friday morning is so highly anticipated. He’ll be speaking at an event in Jackson Hole, Wyoming, that has ben the site of major policy announcements in the past by the Fed.

The two-year Treasury yield, which moves closely with expectations for the Fed, rose to 5.01%. A day before, it had dropped to 4.98% from 5.05% after a report suggested U.S. business activity is cooling in August.

That weaker-than-expected report pushed John Vail, chief global strategist at Nikko Asset Management, to think Powell may not sound as aggressive about keeping rates high.

But he still says Powell “will likely express concerns about inflation not falling fast enough and that the market should not expect any cuts through at least the first part of 2024.”

Thursday’s weakness for stocks came despite a much stronger-than-expected profit report from Nvidia, one of Wall Street’s most influential stocks. That raised hopes that this year’s frenzy on Wall Street around artificial-intelligence technology isn’t just hype.

Nvidia first stunned the market three months ago when it said the quick adoption of AI would send its revenue soaring in the three months through July. Its sales came in even better than forecast, at $12.51 billion, and the company gave a forecast for the current quarter that again blew past Wall Street’s expectations.

Nvidia shot up more than 6% in the morning and seemed to be headed for a record close. But its gain diminished through the day, and it finished up by just 0.1%. It was nevertheless one of the strongest forces pushing up on the S&P 500, which saw more than 80% of stocks within it fall.

On the losing end of Wall Street, Dollar Tree fell 12.9% despite reporting stronger profit and revenue for the latest quarter than expected. It said customers are shifting their purchases toward products that are less profitable for the company. Like other retailers, it also cited inventory “shrink,” which is a term the industry uses to describe theft and other losses of products.

Petco tumbled 20.6% after saying its customers are also feeling pressure. The seller of pet supplies cut its forecast for earnings over the full year, though its results for the latest quarter matched or beat analysts’ expectations.

All told, the S&P 500 fell 59.70 points to 4,376.31. The Dow dropped 373.56 to 34,099.42, and the Nasdaq sank 257.06 to 13,463.97.

In stock markets abroad, indexes were mixed in Europe after mostly rising in Asia

ASX 200 expected to sink​

The Australian share market looks set to end the week in a very disappointing fashion following a sell off on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 91 points or 1.2% lower this morning.

Wall Street slumped Thursday, despite a blowout profit report from Nvidia, following some mixed reports on the U.S. economy.

The S&P 500 dropped 1.3% for its worst loss in three weeks. It nearly wiped out its gain for the week, which had been a bright spot in what’s been a rough August.

The Dow Jones Industrial Average dropped 373 points, or 1.1%, and the Nasdaq composite tumbled 1.9%.

All told, the S&P 500 fell 59.70 points to 4,376.31. The Dow dropped 373.56 to 34,099.42, and the Nasdaq sank 257.06 to 13,463.97.


Market Watch

 

[bigdog]

Stock market today: Wall Street climbs to clinch its first winning week in a month

Stocks rose to send Wall Street to its first winning week since July. The S&P 500 climbed 0.7% Friday after flipping between small gains and losses a few times through the day.

apnews.com

Wall Street climbs to clinch its first winning week in a month​

By STAN CHOE

NEW YORK (AP) — Stocks rose Friday to send Wall Street to its first winning week since July after the head of the Federal Reserve said it will “proceed carefully” as it decides what to do with interest rates.

The S&P 500 climbed 29.40, or 0.7%, to 4,405.71 after flipping between small gains and losses a few times through the day. The Dow Jones Industrial Average rose 247.48 points, or 0.7%, to 34,348.90, and the Nasdaq composite gained 126.67, or 0.9%, to 13,590.65.

In a highly anticipated speech, Fed Chair Jerome Powell said again that it will make upcoming decisions on interest rates based on what incoming data reports say about inflation and the economy, and he made no promises about what’s coming next.

Wall Street had the speech circled on calendars because it was hoping Powell would say the Fed was done with its hikes to interest rates, which grind down inflation at the cost of slowing the economy and hurting prices for investments.

Powell instead said the Fed may raise interest rates again, if needed. Even though inflation has come down from its peak last summer, Powell said it’s still too high.

But he also took care to say he’s aware of the risks of going too far on interest rates and doing “unnecessary harm to the economy.” Altogether, the comments weren’t very different from what Powell said before, analysts said.

But one word of Powell’s stood out to Brian Jacobsen, chief economist at Annex Wealth Management, particularly as it relates to Powell’s speech last year at the same Fed event. That 2022 speech caused stocks to fall sharply.

“Carefully is the new forcefully,” Jacobsen said. “Last year, Powell said the Fed would respond forcefully, and they sure did. Now they can tread carefully. Any adjustments to rates now will be more like fine tuning.”

The Fed has already hiked its main interest rate to the highest level since 2001 in its drive to grind down high inflation. That was up from virtually zero early last year.

The much higher rates have already sent the manufacturing industry into contraction and helped cause three high-profile U.S. bank failures during the spring. They’ve also helped to slow inflation, but a string of stronger-than-expected reports on the economy has raised worries that upward pressure remains. That could force the Fed to keep rates higher for longer.

Such expectations in turn vaulted the yield on the 10-year Treasury this week to its highest level since 2007. It ticked down to 4.23% from 4.24% late Thursday, though it’s still up sharply from less than 0.70% three years ago.

High yields mean bonds are paying more in interest to investors. They also make investors less likely to pay high prices for stocks and other investments that can swing more sharply in price than bonds. Big Tech and other high-growth stocks tend to feel such pressure in particular.

The two-year Treasury, which more closely tracks expectations for the Fed, rose to 5.07% from 5.02% late Thursday. Traders see better than a 50% chance the Fed will hike its main interest rate again this year. That’s up sharply from just a week ago, according to data from CME Group.

The threat of rates staying higher for longer has helped send stocks tumbling in August following what had been a gangbusters year. The S&P 500 is down 4% after soaring 19.5% through July.

The worries about rates staying higher for longer also overshadowed a blowout profit report on Thursday from Nvidia, which has become one of Wall Street’s most influential stocks. The chip maker again gave a stronger forecast for upcoming revenue than expected, giving hope that this year’s frenzy around artificial-intelligence technology may be warranted. The AI mania was a big reason the S&P 500 rose as much as it did earlier this year.

Marvell Technology, another company that’s been citing growth coming from AI, fell 6.6% Friday following its profit report. Its results were a touch higher than analysts expected. Its stock had already rallied nearly 55% coming into the day.

On the winning side of Wall Street, Gap rose 7.2% after the retailer reported stronger profit for the latest quarter than analysts expected, though its revenue fell just shy of forecasts.

In markets abroad, stock indexes were modestly higher in Europe after tumbling across much of Asia.

 

[bigdog]

ASX 200 expected to rise​

The Australian share market looks set to open the week higher following a solid finish on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 20 points or 0.3% higher on Monday.

Stocks rose Friday to send Wall Street to its first winning week since July after the head of the Federal Reserve said it will “proceed carefully” as it decides what to do with interest rates.

The S&P 500 climbed 29.40, or 0.7%, to 4,405.71 after flipping between small gains and losses a few times through the day. The Dow Jones Industrial Average rose 247.48 points, or 0.7%, to 34,348.90, and the Nasdaq composite gained 126.67, or 0.9%, to 13,590.65.

MARKET WATCH

 

[bigdog]

Stock market today: Asian shares mostly rise as attention turns to earnings, economies

Asian shares mostly rose Tuesday as markets shift their attention from the U.S. Federal Reserve to earnings and economic reports.

apnews.com

Wall Street gains ahead of busy week of closely-watched economic reports​

By DAMIAN J. TROISE

NEW YORK (AP) — Stocks rose broadly on Wall Street Monday as markets shift their attention from the Federal Reserve to more corporate and economic reports.

The gains extended the market’s winning streak after it notched its first weekly gain since July. The S&P 500 rose 27.60 points, or 0.6%, to 4,433.31. The benchmark index is still on track to close out August with a loss.

The Dow Jones Industrial Average rose 213.08 points, or 0.6% to 34,559.98 and the Nasdaq composite rose 114.48 points, or 0.8%, to 13,705.13.

Companies are wrapping up their latest round of earnings reports, which have mostly beaten analysts’ expectations. Still, overall profits for the S&P 500 have contracted about 4% under the weight of persistent inflation.

Best Buy, Costco and Dollar General are among some of the bigger retailers that will report their results this week.

3M jumped 5.2% following reports that the company had agreed to a $5.5 billion settlement over faulty earplugs, a lower figure than expected. Boston Scientific rose 6% after giving investors an encouraging update on a study for a heart device.

Shares of Hawaiian Electric jumped 44.6% as the utility pushed back against accusations it is responsible for causing the wildfire that devastated the community of Lahaina. The company said power to the lines in the area of the fire had been cut off hours before the blaze began, refuting an allegation in a lawsuit filed last week by Maui County. The shares are still down about 63% over the past three weeks.

Investors have a busy week ahead full of economic reports that could shed more light on whether the job market remains hot and inflation is still cooling. The latest data could provide more clues about whether the Fed is likely to hold interest rates steady or raise them again before the year closes.

Wall Street will get an update Tuesday on consumer confidence, which jumped sharply in July and is expected to remain strong in August.

The government will issue its July report on job openings on Tuesday and its broader jobs report for August on Friday. The job market is being closely watched because it has remained strong amid high inflation and is credited with acting as a bulwark against a recession.

Investors and economists will be focusing closely on the government’s latest inflation update on Thursday. The report on personal consumption and expenditures is the Fed’s preferred measure as it tries to rein inflation back to 2%. The PCE report showed inflation rising at a rate of 3% in June and the July report is expected to show it rose slightly to 3.3%. Overall, it’s down from a high of 7% a year ago.

Investors closed last week relieved that Fed Chair Jerome Powell said the central bank would “proceed carefully” on interest rates.

“The general consensus is that we’re getting closer to the end of the interest rate hiking cycle,” said Brian Price, head of investment management for Commonwealth Financial Network.

The central bank has already raised its main interest rate to the highest level since 2001 in its drive to grind down high inflation. That was up from virtually zero early last year. The Fed held rates steady at its last meeting, but hasn’t ruled out future rate hikes to fight persistent inflation.

Wall Street is betting that the Fed will hold rates steady again at its September meeting, according to CME’s FedWatch tool. Bets are nearly evenly split, though, on whether it will raise rates one more time before 2023 closes.

Powell on Friday said upcoming decisions will be based on what incoming data reports say about the economy.

The yield on the 10-year Treasury slipped to 4.21% from 4.24% late Friday. The yield on the 2-year Treasury, which more closely tracks expectations for the Fed, fell to 5.06% from 5.08% late Friday.

Markets in Asia rose broadly. China will no longer require a negative COVID-19 test result for incoming travelers, a milestone in its reopening to the rest of the world after an isolation that began with the country’s borders closing in 2020.

European markets also gained ground.

ASX 200 expected to rise again​

The Australian share market is set to rise again 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 25 points or 0.4% higher.

Stocks rose broadly on Wall Street Monday as markets shift their attention from the Federal Reserve to more corporate and economic reports.

The gains extended the market’s winning streak after it notched its first weekly gain since July. The S&P 500 rose 27.60 points, or 0.6%, to 4,433.31. The benchmark index is still on track to close out August with a loss.

The Dow Jones Industrial Average rose 213.08 points, or 0.6% to 34,559.98 and the Nasdaq composite rose 114.48 points, or 0.8%, to 13,705.13.


MARKET WATCH

 

[bigdog]

Stock market today: Asian markets lower after Japan factory activity, China services weaken

Asian stock markets are mostly lower after Japanese factory activity and Chinese service industry growth weakened. Shanghai, Hong Kong and Seoul declined. Tokyo gained.

apnews.com

Wall Street ends higher, chipping away at losses for August​

By DAMIAN J. TROISE and ALEX VEIGA

Stocks ended modestly higher Wednesday, extending Wall Street’s recent winning streak to its fourth day in a row and chipping away more of the market’s losses this month.

After a choppy day of trading, the S&P 500 closed 0.4% higher. The benchmark index remains down 1.6% for August, with one trading day left in the month. The Dow Jones Industrial Average edged up 0.1%, while the Nasdaq composite added 0.5%.

Technology stocks led the market’s gains. Apple rose 1.9% and Palo Alto Networks rose 1.7%. HP was on the losing end with a 6.6% slump after cutting its profit forecast for the year.

Wall Street’s focus this week remains a broad mix of data that investors hope will paint a clearer picture of where the economy is headed and whether the Federal Reserve has enough reason to hold off on further interest rate hikes.

A survey of private-sector employers in the U.S. showed that hiring cooled more than expected by economists. The report reinforces the latest government data on job openings from Tuesday, which also showed that hiring is cooling somewhat.

The U.S. downgraded its economic growth estimate for the second quarter to an annual rate of 2.1% from 2.4%. Economists had forecast that the gross domestic product, or GDP, assessment would remain unchanged though it still marks a slight increase from growth of 2% during the first quarter.

Treasury yields fell following the latest economic reports. The yield on the 10-year Treasury slipped to 4.11% from about 4.15% just before the latest GDP report. It stood at 4.12% late Tuesday.

The yield on the 2-year Treasury, which tracks expectations for the Fed, fell to 4.88% from 4.90% prior to the latest GDP release. It stood at 4.89% late Tuesday.

“Right now, what’s bad is good,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute. “It feels like this week, anyway, we’re fully back into bad economic news is good for the market.”

The latest round of economic updates are signaling that the Fed may be able to pause hiking its main interest rate, which it has pushed to its highest level since 2001 in an effort to tame inflation. The central bank held rates steady at its last meeting and investors expect the same at its upcoming meeting in September.

Wall Street is also hoping that economic data this week shows that the Fed’s goal of a “soft landing” is possible. The central bank’s goal has been to raise interest rates enough to tame inflation without crashing the economy into a recession. A strong job market and consumer spending has helped thwart a recession and analysts are divided on whether one will occur with any severity.

On Thursday, the government will release its latest update on inflation with the July report on personal consumption and expenditures, or PCE. That’s the Fed’s preferred measure for inflation, and it has been cooling for months. PCE eased to 3% in June and was as a high as 7% a year ago.

On Friday, the government’s monthly employment report for August will cap a heavy week of updates about hiring and jobs.

“If you have modest growth and modest inflation and that’s what we’re moving toward, stocks will have a bumpy road in the interim, but that’s a good environment for stocks,” Wren said.

Market jitters over the possibility that interest rates end up staying higher for longer led to a pullback for stocks this month following what had been a banner year. Even so, the S&P 500, which soared 19.5% through July, remains about 17.6% higher for the year, while the tech-heavy Nasdaq is up nearly 34%.

On Wednesday, the S&P 500 rose 17.24 points to 4,514.87, the Dow added 37.57 points, or 0.1%, to 34,890.24, and the Nasdaq gained 75.55 points to 14,019.31.

Markets in Asia ended mixed and European markets mostly fell.

ASX 200 expected to edge high​

The Australian share market is expected to edge slightly higher after a decent night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 4 points or 0.1% higher this morning.

Stocks ended modestly higher Wednesday, extending Wall Street’s recent winning streak to its fourth day in a row and chipping away more of the market’s losses this month.

After a choppy day of trading, the S&P 500 closed 0.4% higher. The benchmark index remains down 1.6% for August, with one trading day left in the month. The Dow Jones Industrial Average edged up 0.1%, while the Nasdaq composite added 0.5%.

On Wednesday, the S&P 500 rose 17.24 points to 4,514.87, the Dow added 37.57 points, or 0.1%, to 34,890.24, and the Nasdaq gained 75.55 points to 14,019.31.

Technology stocks led the market’s gains. Apple rose 1.9% and Palo Alto Networks rose 1.7%. HP was on the losing end with a 6.6% slump after cutting its profit forecast for the year.


Market Watch

 

[bigdog]

Stock market today: Asian shares trade mixed ahead of a key US jobs report

Asian shares are trading mixed as investors looked toward a United States jobs report being released later in the day.

apnews.com

Wall Street ends lower, closes out first losing month since February​

By DAMIAN J. TROISE and ALEX VEIGA

A late-afternoon fade left stocks modestly lower Thursday as Wall Street closed out its first losing month since February.

The S&P 500 gave up an early gain to close 0.2% lower. The benchmark index ended August down 1.8%, though a four-day winning streak going back to last week helped chip away at the severity of the monthly decline.

The Dow Jones Industrial Average fell 0.5%, while the Nasdaq composite eked out a 0.1% gain.

Market jitters over the possibility that the Federal Reserve might have to keep interest rates higher for longer following reports showing the U.S. economy remains remarkably resilient led to the market’s pullback in August after what had been a banner year. This week, reports on job openings, consumer confidence and inflation stoked hopes on Wall Street that the Fed may hold rates steady at its next policy meeting in September.

That helped limit the market’s losses for August. The S&P 500, which soared 19.5% through July, remains 17.4% higher for the year, while the tech-heavy Nasdaq is up 34.1%. The Dow is up 4.8%.

“We’ve kind of entered this point of the year where economic data and earnings are mostly set, in terms of the market’s expectations,” said Michael Antonelli, market strategist at Baird. “But if we get cooler jobs data, cooler inflation data, if we get cooler spending data, that’s what brings rates down dramatically and that gooses stocks higher. That’s kind of what we saw this week.”

On Thursday, the government reported that a measure of inflation closely tracked by the Federal Reserve remained low in July. The latest update for personal consumption and expenditures, or the PCE report, is the latest sign that price increases are cooling.

The central bank has raised its main interest rate aggressively since 2022 to the highest level since 2001. The goal has been to rein inflation back to the Fed’s target of 2%. PCE measured 3.3% in July, matching economists expectations. That’s down from 7% a year ago.

The latest inflation data follows updates on jobs and consumer confidence this week that also supports hopes for the Fed to pause interest rate hikes. The central bank held rates steady at its last meeting and is expected to do the same in September. Investors are expecting rates to hold steady for the remainder of 2023, according to CME’s FedWatch tool.

The Fed has maintained that it is ready to keep raising interest rates if it has to, but will base its next moves on the latest economic data.

“The last hike they made potentially could be the last for the year,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. “As long as inflation remains controlled and contained, I think the Fed is done raising interest rates.”

Bond yields fell again Thursday. The yield on the 10-year Treasury slipped to 4.10% from 4.11% late Wednesday. The yield on the 2-year Treasury, which tracks expectations for the Fed, edged lower to 4.85% from 4.88% late Wednesday.

Wall Street has one more big economic update to look forward to this week. On Friday, the government will report employment data for August. The strong job market, along with consumer spending, has so far helped thwart a recession that analysts expected at some point in 2023. But, they also made the Fed’s task of taming inflation more difficult by fueling wage and price increases.

The Fed is hoping that it can accomplish taming interest rates without sending the economy into a recession. The likelihood of a recession, or at least a severe one, has seemingly been fading and in turn fueling confidence in the market in 2023, despite the recent August slump.

“Sooner or later you need to have a pullback,” Zaccarelli said. “The market can’t go up in a straight line all the time.”

Health care stocks and banks were among the biggest drags on the market. UnitedHealth Group fell 3%, while Elevance Health fell 3.8%.

Gains in technology stocks helped stem the S&P 500’s slide. Broadcom rose 3.4% and Intel rose 1.8%.

Software company Salesforce rose 3% after raising its profit forecast for the year. Cloud-based security company CrowdStrike jumped 9.3% after reporting strong financial results.

Dollar General was among several retailers slipping after reporting weak earnings and forecasts. It slumped 12.2% after cutting its profit forecast for the year.

All told, the S&P 500 fell 7.21 points to 4,507.66 Thursday. The Dow lost 168.33 points to 34,721.91, and the Nasdaq rose 15.66 points to 14,034.97.

Markets in Europe mostly fell. Annual inflation there held steady in August as food prices raced ahead of falling fuel costs, but there was no clarity about whether the European Central Bank will pause its record series of interest rate hikes.

Asian markets were mixed.

ASX 200 expected to fall​

The Australian share market looks set to end the week in a disappointing fashion following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 38 points or 0.55% lower this morning.

A late-afternoon fade left stocks modestly lower Thursday as Wall Street closed out its first losing month since February.

The S&P 500, which soared 19.5% through July, remains 17.4% higher for the year, while the tech-heavy Nasdaq is up 34.1%. The Dow is up 4.8%.

The S&P 500 gave up an early gain to close 0.2% lower. The benchmark index ended August down 1.8%, though a four-day winning streak going back to last week helped chip away at the severity of the monthly decline.

The Dow Jones Industrial Average fell 0.5%, while the Nasdaq composite eked out a 0.1% gain.

All told, the S&P 500 fell 7.21 points to 4,507.66 Thursday. The Dow lost 168.33 points to 34,721.91, and the Nasdaq rose 15.66 points to 14,034.97.


MARKET WATCH

 

[bigdog]

U.S. markets will be closed Monday for Labor Day.

Stock market today: Wall Street edges higher following data that shows the labor market is cooling

Stocks edged higher on Wall Street after a choppy day of trading. The market got a boost early on after a closely watched report signaled that the job market, while still healthy, has been showing some signs of cooling.

apnews.com

Wall Street edges higher following data that shows the labor market is cooling​

By ALEX VEIGA

A choppy day of trading on Wall Street ended Friday with slight gains for stocks, as the market notched its second straight winning week.

The market got a boost early on from a closely watched government report that showed U.S. job growth increased at a healthy, but more moderate pace last month. The report supports investors’ hopes that the Federal Reserve will hold off on raising interest rates again in its bid to lower inflation.

After initially rising as much as 0.8% following the release of the jobs report, the major indexes shed most of their gains and spent the day wavering between small gains and losses.

The S&P 500 finished 0.2% higher. The benchmark index was coming off its first monthly loss since February. The Dow Jones Industrial Average rose 0.3% and the Nasdaq composite closed less than 0.1% lower. Still, that slight dip broke its five-day winning streak.

The Labor Department reported Friday that employers added a solid 187,000 jobs in August. The job growth marked an increase from July’s revised gain of 157,000, but still pointed to a moderating pace of hiring compared with earlier this year. From June through August, the economy added 449,000 jobs, the lowest three-month total in three years.

The report also showed that the unemployment rate rose from 3.5% to 3.8%, the highest level since February 2022, though still low by historical standards.

Wall Street welcomed the latest monthly labor market snapshot, as it roots for the economy to show signs of lower inflation and cooling job growth so that the Fed will be able to ease up on its rate hike campaign.

“Today’s employment report will add to recent data which indicates the Fed can pause on raising interest rates,” said Steve Wyett, chief investment strategist of BOK Financial.

The strong job market, along with consumer spending, has so far helped thwart a recession that analysts expected at some point in 2023. But they also made the central bank’s task of taming inflation more difficult by fueling wage and price increases.

Market jitters over the possibility that the Fed might have to keep interest rates higher for longer — following reports showing the U.S. economy remains remarkably resilient — led to the market’s pullback in August.

But this week, stocks mostly rallied following reports showing job openings fell to the lowest level since March 2021, consumer confidence tumbled in August and a measure of inflation closely tracked by the Fed remained low in July. The recent economic snapshots have bolstered the view on Wall Street that the Fed may hold rates steady at its next policy meeting in September.

“From a data-dependent Fed perspective, the economic data we have seen in August in conjunction with today’s jobs report certainly reinforces the idea that we have seen the last rate hike during this cycle,” said Charlie Ripley, senior investment strategist for Allianz Investment Management.

The central bank has raised its main interest rate aggressively since 2022 to the highest level since 2001. The goal has been to rein inflation back to the Fed’s target of 2%. The Fed has maintained that it is ready to keep raising interest rates if it has to, but will base its next moves on the latest economic data.

Bond yields were mostly rose Friday. The yield on the 2-year Treasury, which tracks expectations for the Fed, got as high as 4.91% at one point, but fell to 4.88% by late afternoon. It was at 4.87% late Thursday. The yield on the 10-year Treasury, which influences interest rates on mortgages and other consumer loans, rose to 4.17% from 4.11%.

Banks and financial services stocks accounted for a big share of the gains among S&P 500 companies. Charles Schwab rose 2.3% and U.S. Bancorp added 1.5%.

Rising oil prices helped push energy stocks higher. Exxon Mobil rose 2.1% and Chevron was up 2%.

The price of U.S. crude oil climbed 2.3%, extending its weekly gain to 7.3%. The increase comes as production cuts by major producers continue to prop up the market. Many industry analysts are expecting to Saudi Arabia to extend those cuts through October.

Communications stocks were among the laggards. Disney dropped 2.4% after the entertainment giant pulled its programming, including ESPN, from Charter Communication’s Spectrum TV after the companies failed to come to terms on a new distribution deal. Charter was down 3.6%.

Walgreens Boots Alliance fell 7.4% after the company announced that CEO Rosalind Brewer was stepping down at the end of the month and that Ginger Graham would take over as interim CEO.

All told, the S&P 500 rose 8.11 points to 4,515.77 Friday. The Dow gained 115.80 points to 34,837.71, and the Nasdaq slipped 3.15 points to 14,031.81.

U.S. markets will be closed Monday for Labor Day.

 

[bigdog]

U.S. markets will be closed Monday for Labor Day.​

ASX 200 expected to rebound​

The Australian share market looks set to open the week higher following a good finish on Wall Street last week. According to the latest SPI futures, the ASX 200 is expected to open the day 31 points or 0.4% higher on Monday.

A choppy day of trading on Wall Street ended Friday with slight gains for stocks, as the market notched its second straight winning week.
The market got a boost early on from a closely watched government report that showed U.S. job growth increased at a healthy, but more moderate pace last month. The report supports investors’ hopes that the Federal Reserve will hold off on raising interest rates again in its bid to lower inflation.

After initially rising as much as 0.8% following the release of the jobs report, the major indexes shed most of their gains and spent the day wavering between small gains and losses.

The S&P 500 finished 0.2% higher. The benchmark index was coming off its first monthly loss since February. The Dow Jones Industrial Average rose 0.3% and the Nasdaq composite closed less than 0.1% lower. Still, that slight dip broke its five-day winning streak.

All told, the S&P 500 rose 8.11 points to 4,515.77 Friday. The Dow gained 115.80 points to 34,837.71, and the Nasdaq slipped 3.15 points to 14,031.81.

Market watch

 

[bigdog]

U.S. markets were closed Monday for Labor Day ​

World shares surge after Wall St gains on signs the US jobs market is cooling​

(This report was issued prior to Europe closing which were actually lower)

By ELAINE KURTENBACH

Stocks were higher in Europe and Asia on Monday following a report that signaled the US jobs market, while still healthy, shows some signs of cooling, raising hopes for an easing of interest rate hikes.

Germany’s DAX advanced 0.7% to 15,949.69 and the CAC 40 in Paris picked up 0.8% to 7,354.96. In London, the FTSE 100 was up 0.8% at 7,522.38.

The futures for the S&P 500 and the Dow Jones Industrial Average were up 0.2%. U.S. markets will be closed for the Labor Day holiday.

“It appears that global markets are primed to be smitten with the idea of a ‘Nirvana’ Fed tightening outcome, entailing the ‘immaculate dis-inflation’ that does not cause employment pain,” Tan Boon Heng of Mizuho Bank said in a commentary.

Apart from the favorable jobs data, fresh stimulus from China’s financial regulators for the beleaguered property sector also supported buying. They have cut down-payment requirements for first and second-time home buyers and lowered rates on existing mortgages, noted Yeap Jun Rong of IG.

Hong Kong’s Hang Seng index jumped 2.5% to 18,844.16, while the Shanghai Composite index added 1.4% to 3,177.06. Tokyo’s Nikkei 225 was up 0.7% at 32,939.18.

In Seoul, the Kospi jumped 0.8% to 2,584.55. Sydney’s S&P/ASX 200 added 0.6% to 7,318.80.

Shares also rose in Taiwan and Southeast Asia.

Friday on Wall Street, the S&P 500 finished 0.2% to 4,515.77. The Dow Jones Industrial Average rose 0.3% to 34,837.71. The Nasdaq composite closed less than 0.1% lower, at 14,031.81, breaking a five-day winning streak.

The Labor Department reported Friday that employers added a solid 187,000 jobs in August. The job growth marked an increase from July’s revised gain of 157,000, but still pointed to moderating hiring compared with earlier this year. From June through August, the economy added 449,000 jobs, the lowest three-month total in three years.

The report also showed the unemployment rate rose to 3.8% from 3.5%. That’s the highest level since February 2022, though still low by historical standards.

Strong hiring and consumer spending have helped stave off a recession that analysts expected at some point in 2023. But they also make the central bank’s task of taming inflation more difficult by fueling wage and price increases.

Market fears that the Fed might have to keep interest rates higher for longer — following reports showing the U.S. economy remains remarkably resilient — led the market to pull back in August.

But recent economic snapshots have bolstered the view on Wall Street that the Fed may hold rates steady at its next policy meeting in September.

The U.S. central bank has raised its main interest rate aggressively since 2022 to the highest level since 2001. The goal has been to rein inflation back to the Fed’s target of 2%. The Fed has maintained that it is ready to keep raising interest rates if it has to, but will base its next moves on the latest economic data.

Banks and financial services stocks accounted for a big share of the gains among S&P 500 companies. Charles Schwab rose 2.3% and U.S. Bancorp added 1.5%.

Rising oil prices helped push energy stocks higher, as the price of benchmark U.S. crude jumped 2.3%. Exxon Mobil rose 2.1% and Chevron was up 2%.

Early Monday, U.S. benchmark crude was down 11 cents at $85.44 a barrel. Brent crude oil lost 6 cents to $88.49 a barrel.

In currency trading, the U.S dollar rose to 146.36 Japanese yen from 146.22 yen late Friday. The euro rose to $1.0793 from $1.0779.

ASX 200 expected to fall​

The Australian share market is set to fall on Tuesday following a poor start to the week in Europe. According to the latest SPI futures, the ASX 200 is poised to open the day 19 points or 0.25% lower.

In Europe, the DAX fell 0.1%, the FTSE dropped 0.15%, and the CAC was down 0.25%. Wall Street was closed for the Labor Day holiday.

Market Watch

U.S. markets were closed Monday for Labor Day​

Rest of World Trading Monday

 

[bigdog]

Stock market today: Asian markets are mostly lower as oil prices push higher

Shares are mostly lower in Asia after a decline on Wall Street as traders returned from a long holiday weekend.

apnews.com

Wall Street ends lower following two weeks of gains​

By DAMIAN J. TROISE and ALEX VEIGA

Major stock indexes on Wall Street closed lower Tuesday, giving back some of their recent gains as traders returned from a long holiday weekend.

The S&P 500 fell 0.4%, while the Nasdaq composite slipped 0.1%. Both indexes were coming off their second weekly gain. The Dow Jones Industrial Average lost 0.6%.

The selling was widespread, with decliners outnumbering advancers by more than 3 to 1 on the New York Stock Exchange.

Losses in industrial, health care and financial stocks were the biggest drag on the benchmark S&P 500. Cintas fell 1.7%, Merck & Co. dropped 2.1% and JPMorgan Chase closed 1.1% lower.

Technology stocks were the biggest bright spot. Microsoft rose 1.5%.

Energy stocks rose along with crude oil prices after Saudi Arabia and Russia said they will extend their voluntary production cut of 1 million barrels of oil a day through the end of the year. U.S. crude oil prices rose 1.3% and Chevron rose 1.3%.

Smaller company stocks also lost ground, sending the Russell 2000 index 2.1% lower.

The yield on the 10-year Treasury, which influences interest rates on mortgages and other loans, rose to 4.27% from 4.18% late Friday. The yield on the 2-year Treasury, which tracks expectations for the Fed, rose to 4.96% from 4.88%.

Coming off the Labor Day holiday, investors have few economic reports to look forward to this week, while the latest round of corporate earnings is essentially finished.

“There’s not much going on other than investors doing the mental arithmetic over whether the Federal Reserve will or will not continue to hike interest rates,” said Sam Stovall, chief investment strategist at CFRA.

The Institute for Supply Management releases its latest report on the U.S. services sector Wednesday. The services sector employs most Americans and is a big component of the economy. Its health could provide more insight into how inflation is affecting consumer spending.

Wall Street will also get updates on aspects of the manufacturing sector and consumer credit. DocuSign, GameStop, Dave & Buster’s and Kroger are set to report their most recent quarterly financial results this week.

Last week, investors were busy reviewing a heavy load of economic data as they try to get a better picture of the economy. Much of the information fueled hopes that the Fed might moderate interest rate increases to fight inflation, which has been easing for months.

Wall Street expects the Fed to hold its benchmark interest rate steady at its next meeting later in September, just as it did at its previous meeting. Investors are mostly betting that the central bank will maintain that pause through the rest of the year.

The central bank has raised its main interest rate aggressively since 2022 to the highest level since 2001. The goal has been to rein inflation back to the Fed’s target of 2%. Several measures of inflation have gotten closer to that target and the economy is still growing. That has alleviated concerns about the aggressive rate hikes pushing the economy into a recession.

Analysts are still concerned about the potential for a recession, but those concerns have lessened as inflation cools and the economy remains resilient.

All told, the S&P 500 fell 18.94 points to 4,496.83 Tuesday. The Dow dropped 195.74 points to 34,641.97, and the Nasdaq slipped 10.86 points to 14,020.95. The Russell 2000 slid 40.38 points to 1,880.45.

Markets in Europe and Asia closed mixed. Hong Kong’s benchmark fell 2.1%, as investors sold real estate shares which have gained recently following government efforts to support the ailing industry.

ASX 200 expected to fall​

The Australian share market looks set to fall again 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 18 points or 0.2% lower this morning.
Major stock indexes on Wall Street closed lower Tuesday, giving back some of their recent gains as traders returned from a long holiday weekend.

The S&P 500 fell 0.4%, while the Nasdaq composite slipped 0.1%. Both indexes were coming off their second weekly gain. The Dow Jones Industrial Average lost 0.6%

All told, the S&P 500 fell 18.94 points to 4,496.83 Tuesday. The Dow dropped 195.74 points to 34,641.97, and the Nasdaq slipped 10.86 points to 14,020.95. The Russell 2000 slid 40.38 points to 1,880.45.


Market Watch

 

[bigdog]

Stock market today: Asian shares fall, tracking a decline on Wall St on fears rates may stay high

Shares are lower in Asia after a decline on Wall Street, where strong economic data revived worries that the Federal Reserve might keep interest rates high for longer than hoped.

apnews.com

Wall Street loses ground as weak stretch continues​

By DAMIAN J. TROISE and ALEX VEIGA

Stocks fell again Wednesday, extending Wall Street’s weak stretch this holiday-shortened week.

The S&P 500 dropped 0.7%. After two days of trading, the benchmark index has lost nearly half of its gains from last week. The Dow Jones Industrial Average fell 0.6% and the Nasdaq composite ended 1.1% lower.

Big technology stocks were among the biggest drags on the market. Apple fell 3.6% and Nvidia dropped 3.1%.

The latest pullback in stocks came as Treasury yields climbed following data showing the U.S. services sector remains strong.

The Institute for Supply Management’s latest survey showed that the sector, which employs most Americans, grew at a faster pace than economists expected in August. The sector is among the biggest pieces of the U.S. economy and it has remained resilient throughout 2023 despite persistent inflation and rising interest rates squeezing consumers.

“That suggests there is still a tremendous amount of demand for the services sector,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management.

Bond yields jumped following the report. The yield on the 10-year Treasury, which influences interest rates on mortgages and other loans, rose to 4.30% from about 4.25% just prior to the survey’s release.

The yield on the 2-year Treasury, which tracks expectations for the Federal Reserve, rose to 5.04% from 4.96% just prior to the survey’s results being released.

The dominant economic theme continues to be inflation and interest rates, which the Fed has boosted in an effort to bring down prices. Investors are hoping that the Fed might moderate interest rate increases going forward as inflation has been easing for months.

Wall Street expects the Fed to hold its benchmark interest rate steady at its next meeting later in September. Investors are mostly betting that the central bank will maintain that pause through the rest of the year. Economic updates last week on consumer confidence, jobs and inflation reinforced those hopes.

“It seems we’re all coalescing around a potential pause,” Hainlin said.

Inflation has been easing for months under the weight of the Fed’s aggressive rate hikes that started in 2022 and brought its main interest rate to the highest level since 2001. The policy raised concerns that the central bank might be too aggressive and hit the brakes on economic growth with enough force that the economy would be thrown into a recession.

A strong jobs market and consumer spending have propped up the broader economy and staved off a recession, so far. Wall Street will get several more economic updates on inflation and retail sales later in September ahead of the Fed’s next meeting.

Even so, when bond yields move rapidly higher it can force investors to reconsider whether stocks are too expensive.

“The market is just hypersensitive to these moves in rates right now,” said Ross Mayfield, investment strategy analyst at Baird.

Beyond the recent mix of economic reports, rising oil prices and a stronger dollar may also be putting traders in a selling mood.

“The dollar has really had a strong move alongside a big move higher in oil prices, both of which in a vacuum are negative for corporate profits,” Mayfield said.

All told, the S&P 500 fell 31.35 points to 4,465.48 Wednesday. The Dow dropped 198.78 points to 34,443.19, and the Nasdaq gave back 148.48 points to 13,872.47.

Several companies made big moves after reporting earnings and other updates. AeroVironment jumped 20.7% after the maker of unmanned aircrafts raised its sales forecast for the year. Roku rose 2.9% after giving investors an encouraging financial update and saying it would cut 10% of its staff.

Markets in Europe fell and markets in Asia ended mixed.

ASX 200 expected to fall again​

The Australian share market looks set to fall again on Thursday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 35 points or 0.5% lower this morning.

Stocks fell again Wednesday, extending Wall Street’s weak stretch this holiday-shortened week.

The S&P 500 dropped 0.7%. After two days of trading, the benchmark index has lost nearly half of its gains from last week. The Dow Jones Industrial Average fell 0.6% and the Nasdaq composite ended 1.1% lower.

Big technology stocks were among the biggest drags on the market. Apple fell 3.6% and Nvidia dropped 3.1%
All told, the S&P 500 fell 31.35 points to 4,465.48 Wednesday. The Dow dropped 198.78 points to 34,443.19, and the Nasdaq gave back 148.48 points to 13,872.47.

Market Watch