NYSE Dow Jones finished today at:

[bigdog]

Stock market today: Asian shares mixed, with most regional markets closed after Wall St ticks higher

Asian markets are mixed, with only a few open due to public holidays across the region. Tokyo's Nikkei 225 was barely changed.

apnews.com

Wall Street ticks higher as pressure eases from the bond and oil markets​

By STAN CHOE

Wall Street ticked higher Thursday to trim its sharp loss for September after pressure squeezing it from the oil and bond markets relaxed a bit.

The S&P 500 rose 25.19, or 0.6%, to 4,299.70. The Dow Jones Industrial Average added 116.07 points, or 0.3%, to 33,666.34, and the Nasdaq composite gained 108.43, or 0.8%, to 13,201.28.

A drop in oil prices took some heat off the stock market, a day after crude reached its highest price of the year. Treasury yields also relaxed to give the stock market more of a breather, particularly Big Tech companies.

A 2.1% climb for Meta Platforms and 1.5% gain for Nvidia were two of the strongest forces lifting the S&P 500.

Stocks, though, are still on track for their worst month of the year as Wall Street grapples with a new normal where interest rates may stay high for a while. The Federal Reserve has pulled its main interest rate to the highest level since 2001 in hopes of extinguishing high inflation, and it indicated last week it may cut rates by less next year than earlier expected.

It’s a sharp departure from prior years for investors, who counted on the Fed to cut rates quickly and sharply whenever things looked dicey. Lower rates can goose financial markets, while high rates slow the economy by design and hurt prices for stocks and other investments.

The threat of higher rates for longer has pushed Treasury yields up sharply in the bond market. The yield on the 10-year Treasury climbed above 4.67% in the morning, near its highest level since 2007. It later fell back to 4.57%, down from 4.61% late Wednesday.

The two-year Treasury yield, which moves more on expectations for Fed action, slipped to 5.06% from 5.14%.

Yields squiggled following the latest batch of reports on the economy.

One said fewer workers applied for unemployment benefits last week than economists expected. It’s the latest signal of a solid job market, one that has helped prevent a recession but may also be feeding upward pressure into inflation.

A separate report said the U.S. economy grew at a 2.1% annual rate during the summer, following some revisions to earlier estimates. That was below economists’ expectations, but economic growth looks like it’s remained solid through the third quarter at least. The question is how the trend goes in the final three months of the year.

Altogether, the reports didn’t give anything to change investors’ minds about the Fed staying tough on interest rates, something that Wall Street calls a “hawkish” stance on policy.

“The waiting game continues,” said Mike Loewengart, head of model portfolio construction at Morgan Stanley Global Investment Office.

“Until there’s a clear break from this holding pattern, investors will be living with a hawkish Fed, higher-for-longer interest rates and, likely, additional market volatility,” he said.

Many other challenges are also looming over the economy and Wall Street besides the threat of higher interest rates for longer.

Most immediate is the threat of another U.S. government shutdown as soon as this weekend, though financial markets have held up rather well during past shutdowns.

Another threat eased a bit, as crude oil prices pulled back. A barrel of benchmark U.S. crude oil sank $1.97 to settle at $91.71. It’s still up sharply from below $70 during the summer, which has added to worries about inflation. Brent crude, the international standard, also fell by more than $1 per barrel.

On Wall Street, Peloton Interactive jumped 5.4% after the online exercise bike and fitness company announced a five-year partnership with athletic wear maker Lululemon Athletica.

Trimble rose 6.5% after it said it will get $2 billion in cash and a 15% ownership stake in a joint venture with agricultural machinery company AGCO. Trimble will contribute much of its precision agriculture business to the joint venture. AGCO rose 2.8%.

On the losing end of Wall Street, Micron Technology slumped 4.4% despite reporting better results for the latest quarter than analysts expected. Its forecast for upcoming profitability fell short of some analysts’ estimates.

In stock markets abroad, the Hang Seng fell 1.4% in Hong Kong as trading in shares of property developer China Evergrande Group was suspended. The company said authorities had informed it that its chairman, Hui Ka Yan, had been subjected to “mandatory measures in accordance with the law due to suspicion of illegal crimes.”

Evergrande is the world’s most heavily indebted real estate developer and is at the center of a property market crisis that is dragging on China’s economic growth.

ASX 200 expected to rebound​

The Australian share market looks set to end the week on a positive note following a good session on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 45 points or 0.6% higher this morning.

Wall Street ticked higher Thursday to trim its sharp loss for September after pressure squeezing it from the oil and bond markets relaxed a bit.

The S&P 500 rose 25.19, or 0.6%, to 4,299.70. The Dow Jones Industrial Average added 116.07 points, or 0.3%, to 33,666.34, and the Nasdaq composite gained 108.43, or 0.8%, to 13,201.28.

A drop in oil prices took some heat off the stock market, a day after crude reached its highest price of the year. Treasury yields also relaxed to give the stock market more of a breather, particularly Big Tech companies.


Market Watch

 

[divs4ever]

hmmm .. a sucker rally in the US ??

and maybe some recent div. money trying to find a home in the ASX

might be an interesting day today

 

[bigdog]

Stock market today: Wall Street wraps its miserable September with another weak finish

Wall Street closed out its worst month of the year with more losses. The S&P 500 slipped 0.3% Friday after an earlier gain withered, and the majority of stocks within the index sank.

apnews.com

Wall Street wraps its miserable September with another weak finish​

By STAN CHOE

Wall Street closed out its worst month and quarter of the year with more losses on Friday.

The S&P 500 slipped 0.3% after a gain from the morning withered, and the majority of stocks within the index sank. The Dow Jones Industrial Average fell 158 points, or 0.5%, and the Nasdaq composite edged higher by 0.1%.

Solid gains for stocks early on faded as pressure built from within the bond market. After easing earlier in the day on encouraging signals about inflation, Treasury yields got back to rising as the day progressed.

The yield on the 10-year Treasury yield returned to 4.58%, where it was late Thursday, after dipping to 4.52%. It’s again near its highest level since 2007.

Treasurys are seen as some of the safest investments possible, and when they pay higher yields, investors are less likely to pay high prices for stocks and other riskier investments. That’s a big reason why the S&P 500 dropped 4.9% in September to drag what had been a big gain for the year down to 11.7%

Treasury yields have been climbing sharply as Wall Street accepts a new normal where the Federal Reserve is likely to keep interest rates high for longer. The Fed is trying to push still-high inflation down to its target, and its main tool of high interest rates does that by trying to slow the economy and hurting prices for investments.

The Fed’s main interest rate is at its highest level since 2001, and the central bank indicated last week it may cut interest rates next year by less than it earlier expected.

Friday’s economic data showed that not only was inflation a touch cooler than expected in August, so was growth in spending by U.S. consumers. That can be a positive for inflation because it means not as many dollars are pouring into purchases. That in turn could give companies less encouragement to try to raise prices further. But it may also dent what’s been a big driver keeping the U.S. economy out of a recession.

“It came to a boil during a hot summer, and the temperature is really starting to come down,” said Brian Jacobsen, chief economist at Annex Wealth Management, of spending growth by U.S. consumers. “Higher energy prices, student loan debt repayments and real disposable incomes that have been on a declining trajectory since June doesn’t bode well.”

Oil prices have jumped to their highest level in more than a year, which is pressuring the economy by raising fuel costs for everyone. A barrel of U.S. crude sank 92 cents Friday to settle at $90.79, but it’s still up sharply from $70 in June. Brent crude, the international standard, also weakened.

The resumption of U.S. student-loan repayments, meanwhile, may funnel more dollars away from the spending by consumers that has helped to keep the economy afloat.

Another, more immediate threat for the economy could hit soon as the U.S. government nears another possible federal shutdown. Markets have broadly held up rather well during past shutdowns, but a few crucial economic reports are scheduled for the next couple of weeks.

The latest monthly update on the U.S. jobs market is due next week, with a couple of important reports on inflation coming the following week. Postponements of such reports could complicate things for the Fed, which has insisted it will make upcoming decisions on interest rates based on what incoming data say about the economy. The Fed’s next meeting on rates ends on Nov. 1.

On Wall Street, Nike jumped 6.7% after reporting better profit for the latest quarter than analysts expected. Strength overseas helped it make up for some declines in North America.

Blue Apron soared 134.5% after the meal kit company said it was being bought by Wonder Group for $13 per share in cash in a deal valued at $103 million.

On the losing end of Wall Street were stocks of energy producers, hurt by the slide in oil’s price. Energy stocks in the S&P 500 fell 2% as a group, more than double the loss of any of the other 10 sectors that make up the index.

Exxon Mobil fell 1.6%, and Schlumberger dropped 4.3%. Energy stocks, though, remain the market’s standout performers since the summer.

Shares of Ford and General Motors slipped after the United Auto Workers said it will expand its limited strike to include another facility for each. Ford fell 1.1%, and GM dipped 0.6%.

All told, the S&P 500 slipped 11.65 points to 4,288.05. The Dow dropped 158.84 to 33,507.50, and the Nasdaq added 18.05 to 13,219.32.

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

 

[bigdog]

ASX 200 expected to fall​

The Australian share market looks set to open the week lower following a reasonably poor finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 38 points or 0.55% lower on Monday.
Wall Street closed out its worst month and quarter of the year with more losses on Friday.


The S&P 500 slipped 0.3% after a gain from the morning withered, and the majority of stocks within the index sank. The Dow Jones Industrial Average fell 158 points, or 0.5%, and the Nasdaq composite edged higher by 0.1%.

All told, the S&P 500 slipped 11.65 points to 4,288.05. The Dow dropped 158.84 to 33,507.50, and the Nasdaq added 18.05 to 13,219.32.


Market Watch

 

[bigdog]

Stock market today: Asian markets sink, with Hong Kong down 3% on heavy selling of property stocks

Asian markets have declined following a mixed session on Wall Street, where buying was pressured by rising bond yields.

apnews.com

Most of Wall Street slips as the bond market cranks up the pressure​

By STAN CHOE

NEW YORK (AP) — Stocks mostly slipped in mixed trading Monday as the constrictor of higher interest rates tightened its coils around Wall Street.

The S&P 500 edged up by 0.34, or less than 0.1%, to 4,288.39, coming off its worst month of the year. The Dow Jones Industrial Average dropped 74.15 points, or 0.2%, to 33,433.35, and the Nasdaq composite rose 88.45, or 0.7%, to 13,307.77.

Slumps for oil-and-gas stocks weighed on the market after crude prices gave back some of the sharp gains made since the summer. The majority of stocks fell alongside them, with more than three quarters of those within the S&P 500 sinking, but gains for Apple and other influential Big Tech stocks helped support indexes.

Stocks have broadly given back 40% of their strong gains for the year since the end of July. The main reason is Wall Street’s growing acceptance that high interest rates are here to stay a while as the Federal Reserve tries to knock high inflation lower. That in turn has pushed Treasury yields to their highest levels in more than a decade.

The yield on the 10-year Treasury climbed again Monday, up to 4.67% from 4.58% late Friday, and is near its highest level since 2007. High yields send investors toward bonds that are paying much more than in the past, which pulls dollars away from stocks and undercuts their prices.

Stocks that pay high dividends with relatively steady businesses see particular pain because their investors are more likely to switch between stocks and bonds. That puts a harsh spotlight on utility companies. PG&E dropped 5.6%, and Dominion Energy sank 5.3% for some of the sharpest losses in the S&P 500.

High interest rates also make borrowing more expensive for all kinds of companies, which can pressure their profits. Since the Federal Reserve indicated last month it likely won’t cut rates as much in 2024 as earlier expected, the value of the U.S. dollar has also climbed against other currencies. That can mean a painful hit for S&P 500 companies, which get a big chunk of their revenue from abroad.

“If higher-for-longer rates keep the dollar at recent levels, corporate profits will face a genuine headwind,” according to Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management.

Besides hurting financial markets in the aim of lowering inflation, high interest rates slow the overall economy and can cause disruptions in far-flung, unexpected corners of the economy.

The overall U.S. economy has so far been holding up, defying predictions that it would have fallen into a recession by now.

Manufacturing has been one area that’s felt the sting of higher rates, and reports on Monday suggested it’s still contracting, though perhaps not by as much as expected. A report from the Institute for Supply Management said U.S. manufacturing shrank in September for an 11th straight month.

More encouraging for Wall Street was that the report also indicated prices were easing in September. That could mean less pressure on inflation, which has been feeling heat recently from fast-rising oil prices.

Crude oil prices pulled back on Monday after charging higher from $70 in the summer. A barrel of U.S. crude fell $1.97 to settle at $88.82. Brent crude, the international standard, also sank. Brent lost $1.49 to settle at $90.71 a barrel.

The drop for oil dragged stocks lower across the energy sector. Exxon Mobil fell 1.7%, and Chevron lost 1.2%.

SmileDirectClub plunged 61.2% to 16 cents after the company that helps people straighten their teeth filed for Chapter 11 bankruptcy protection.

On the winning side of Wall Street, Discover Financial Services rose 4.8% for the biggest gain in the S&P 500. The company gave details about a consent order it received from the Federal Deposit Insurance Corp, requiring Discover Bank to improve its consumer compliance management system. Analysts pointed to how Discover did not receive a fine, which could be seen as a positive for the stock.

Congress over the weekend avoided a shutdown of the federal government, which threatened to hurt the economy and disrupt the publication of economic data Wall Street finds crucial. But Capitol Hill only temporarily delayed the threat, promising another showdown. Plus, traders are well aware the stock market has held up rather well through past shutdowns.

In stock markets abroad, indexes slumped across much of Europe.

In Asia, Japan’s Nikkei 225 slipped 0.3% despite a survey from the central bank showing business confidence is on the rise.

ASX 200 expected to crash​

The Australian share market is set to fall heavily on Tuesday ahead of the Reserve Bank meeting this afternoon. This follows a mixed start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 96 points or 1.4% lower.
Stocks mostly slipped in mixed trading Monday as the constrictor of higher interest rates tightened its coils around Wall Street.

The S&P 500 edged up by 0.34, or less than 0.1%, to 4,288.39, coming off its worst month of the year. The Dow Jones Industrial Average dropped 74.15 points, or 0.2%, to 33,433.35, and the Nasdaq composite rose 88.45, or 0.7%, to 13,307.77.

Market Watch

 

[divs4ever]

According to the latest SPI futures, the ASX 200 is poised to open the day 96 points or 1.4% lower.

yep , that is the current number on Commsec

a bit surprising for an RBA rates day

 

[Dona Ferentes]

yep , that is the current number on Commsec

a bit surprising for an RBA rates day

no causal relationship there, divs

 

[divs4ever]

no causal relationship there, divs

well i was thinking the RBA would continue to pause until February 2024

they have resisted the opportunity to 'trickle it up ' previously to an even 0.25% increment , and i don't see them reducing rates in 2023

now market-wise there might be some orchestrated short-selling in a lightly traded session

i guess we will see at the end of the day

 

[bigdog]

the ASX 200 is currently minus 122 points at 11:20 AM and the only 7 shares with gains are

The biggest losers are

Source site is (assume 20 minute delay)

Stock Quotes & Stock Prices - Investing.com AU

Complete real-time stock market coverage - streaming quotes for stocks from the most popular stock exchanges around the globe.

au.investing.com

 

[bigdog]

Stock market today: Asian shares are sharply lower, tracking a rates-driven tumble on Wall Street

Asian markets are trading sharply lower after Wall Street tumbled as it focused on the downside of a surprisingly strong job market: the likelihood that interest rates will stay high.

apnews.com

Wall Street buckles under higher bond yields as Dow wipes out gain for the year​

By STAN CHOE

Wall Street fell sharply Tuesday as it focused on the downside of a surprisingly strong job market.

The S&P 500 dropped 1.4% to its lowest point in four months. The Dow Jones Industrial Average tumbled 430 points, or 1.3% and wiped out the last of its gains made for the year so far. Some of the heaviest losses came from Big Tech stocks, which sent the Nasdaq composite to a market-leading loss of 1.9%.

Stocks fell as the pressure on them cranked even higher from rising Treasury yields in the bond market. Such weight has been the main reason the S&P 500 has lost more than 40% of its value since the end of July, after charging higher for much of the year.

The 10-year Treasury yield climbed again Tuesday, up to 4.79% from 4.69% late Monday and from just 0.50% early in the pandemic. It touched its highest level since 2007 and rose after a report showed U.S. employers have many more job openings than expected.

When bonds are paying so much more in interest, they pull investment dollars away from stocks and other investments prone to bigger swings in price than bonds. High yields also make borrowing more expensive for companies and households across the economy, which can hurt corporate profits.

Yields have been on the march because investors are increasingly taking the Federal Reserve at its word that it will keep its main interest rate high for a long time in order to drive down inflation. The Fed has already yanked its federal funds rate to the highest level since 2001, and it indicated last month it may keep the rate higher in 2024 than it earlier expected.

Fed Gov. Michelle Bowman said in a speech Monday that she expects it will likely be appropriate “to raise rates further and hold them at a restrictive level for some time.” Restrictive is what Fed officials call high-enough rates to slow the overall economy.

Tuesday’s report on the U.S. job market could give the Fed more reason to keep rates high. It showed employers were advertising 9.6 million job openings at the end of August, much higher than the 8.9 million that economists expected.

Such hunger for workers could keep upward pressure on wages to attract employees. While that would be welcomed by workers trying to keep up with inflation, the Fed’s fear is that could give inflation more fuel.

“It’s a classic good news is bad news because the potential impact of higher interest rates on both the economy and markets is becoming concerning as the yield on the 10-year Treasury note continues to march higher,” said Yung-Yu Ma, chief investment officer at BMO Wealth Management.

Big Tech stocks were some of the heaviest weights on the market. They and other high-growth stocks are typically seen as some of the biggest victims of high interest rates. Amazon fell 3.7%, Microsoft dropped 2.6% and Nvidia lost 2.8%.

Several other challenges are also tugging at Wall Street besides higher yields. The resumption of student-loan repayments could drag on spending by U.S. households, which has been strong enough to help keep the economy out of a recession despite high interest rates. Higher oil prices are threatening to worsen inflation, and economies around the world look shaky.

A weaker recovery than expected in China’s economy was one of the main reasons McCormick, a maker of cooking seasonings and spices, reported slightly weaker revenue for its latest quarter than analysts expected. Its profit matched expectations, but its stock fell 8.5%.

The world’s second-largest economy is also facing a crisis within its property development industry, and Hong Kong’s Hang Seng index tumbled 2.7% as investors unloaded stocks of developers.

However, China Evergrande jumped 28% after resuming trading Tuesday. Its shares were suspended last week as the troubled real estate developer announced that its chairman was under investigation.

Markets in mainland China and South Korea remained closed for holidays, while Japan’s Nikkei 225 index fell 1.6%. Stocks were also lower across much of Europe.

On Wall Street, Point Biopharma, which develops cancer-fighting treatments, soared 84.9% after Eli Lilly said it was buying the company for about $1.4 billion in cash. Eli Lilly fell 2.4%.

All told, the S&P 500 fell 58.94 points to 4,229.45. The Nasdaq sank 248.31 to 13,059.47, and the Dow dropped 430.97 to 33,002.38

The Dow is down 0.4% for the year so far, after being up nearly 8% at the start of August. The S&P 500, which is the index more 401(k) investments are benchmarked against, has sliced its gain for the year so far to 10.2%.

Oil prices ticked higher a day after slumping sharply to trim their big gains since the summer.

A barrel of benchmark U.S. crude rose 41 cents to settle at $89.23 after charging mostly higher from $70 during the summer. Brent crude, the international standard, rose 21 cents to $90.92 per barrel.

ASX 200 expected to fall again​

The Australian share market looks set to fall again on Wednesday following a selloff 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.
Wall Street fell sharply Tuesday as it focused on the downside of a surprisingly strong job market.

The S&P 500 dropped 1.4% to its lowest point in four months. The Dow Jones Industrial Average tumbled 430 points, or 1.3% and wiped out the last of its gains made for the year so far. Some of the heaviest losses came from Big Tech stocks, which sent the Nasdaq composite to a market-leading loss of 1.9%.

Stocks fell as the pressure on them cranked even higher from rising Treasury yields in the bond market. Such weight has been the main reason the S&P 500 has lost more than 40% of its value since the end of July, after charging higher for much of the year.

All told, the S&P 500 fell 58.94 points to 4,229.45. The Nasdaq sank 248.31 to 13,059.47, and the Dow dropped 430.97 to 33,002.38

The Dow is down 0.4% for the year so far, after being up nearly 8% at the start of August. The S&P 500, which is the index more 401(k) investments are bench marked against, has sliced its gain for the year so far to 10.2%.


Market Watch

 

[bigdog]

Stock market today: Asian shares rise, buoyed by Wall Street rally from bonds and oil prices

Asian shares are mostly higher as a plunge in oil prices aided a recovery on Wall Street. Benchmarks rose in Tokyo, Sydney, Seoul and Hong Kong.

apnews.com

Wall Street rises after getting some relief from the bond market and oil prices​

By STAN CHOE

Wall Street rose Wednesday after getting some relief from relaxing bond yields and falling oil prices.

The S&P 500 climbed 0.8% to claw back more than half its sharp tumble from a day earlier, which sent it to a four-month low. The Dow Jones Industrial Average rose 127 points, or 0.4%, a day after erasing the last of its gains for the year so far. The Nasdaq composite led the market with a gain of 1.4%.

Stocks have struggled since the summer under the weight of soaring Treasury yields in the bond market. High yields undercut stock prices by pulling investment dollars away from stocks and into bonds. They also crimp corporate profits by making borrowing more expensive.

The yield on the 10-year Treasury, which is the centerpiece of the bond market, pulled back from its highest level since 2007, down to 4.73% from 4.80% late Tuesday. Shorter- and longer-term yields also eased to allow more oxygen for the stock market.

Yields fell following a couple reports indicating a slowing economy. The first suggested hiring by employers outside the government was much weaker last month than expected.

On Wall Street, that’s currently good news because a cooling job market could mean less upward pressure on inflation. That in turn could convince the Federal Reserve to take it easier on interest rates.

After already hiking its main interest rate to the highest level since 2001, the Fed has indicated it may keep its overnight rate higher next year than it had earlier expected. Treasury yields have correspondingly snapped higher as traders accept a new normal for markets of high rates for longer.

The Fed is paying particular attention to the job market because too much strength there could drive wages for workers much higher, which it fears could keep inflation well above its target of 2%.

Wednesday’s report from ADP suggested private employers added 89,000 jobs last month, a much sharper slowdown in hiring than the 140,000 that economists expected.

The report doesn’t have a perfect track record in predicting what the more comprehensive jobs report from the U.S. government will say. That will arrive on Friday.

But “if Friday’s report also shows the labor market is cooling, stock investors may worry a little less about indefinitely higher interest rates,” said Mike Loewengart, head of model portfolio construction at Morgan Stanley Global Investment Office.

A second report on the economy said growth in U.S. services industries slowed in September by a touch more than economists expected.

It also offered some hints of sticky pressure on inflation, with prices paid by services companies rising last month at a similar rate as in August.

Oil prices tumbled Wednesday to take some heat off inflation. Benchmark U.S. crude fell $5.01 to settle at $84.22 per barrel for its worst drop in just over a year. It’s been pulling back since topping $93 last week. Brent crude, the international standard, lost $5.11 to $85.81.

Prices for crude had been generally charging higher from $70 during the summer following announcements of cuts to production by some oil-producing countries.

Wall Street is also absorbing the ouster of Kevin McCarthy as the speaker of the House of Representatives. The unprecedented move to remove a speaker from the position likely doesn’t change much in the short term, with funding for the U.S. government set until Nov. 17.

“That said, a leadership vacuum in the House raises the odds of a government shutdown when the current funding extension expires,” according to economists at Goldman Sachs.

A shutdown would drag on the U.S. economy, raising the risk of a recession, though financial markets have held up relatively well through past shutdowns.

On Wall Street, Big Tech stocks helped to support the market after leading it lower a day earlier. They tend to move more sharply with expectations for rates because high-growth stocks are seen as some of the biggest victims of high yields.

A 5.9% jump for Tesla and 1.8% rise for Microsoft were the two strongest forces pushing upward on the S&P 500. Alphabet rose 2.1%.

On the losing end of Wall Street were big oil-and-gas companies, which fell with the price of crude. Exxon Mobil dropped 3.7%, Chevron lost 2.3% and ConocoPhillips slid 3.6%.

Cal-Maine tumbled 7.3% after the egg producer reported a sharp drop in profit for its latest quarter from a year earlier. The company said egg prices have returned “to more normalized levels” from their record highs as the industry recovers from the most recent outbreak of highly pathogenic avian influenza.

All told, the S&P 500 rose 34.30 points to 4,263.75. The Dow added 127.17 to 33,129.55, and the Nasdaq jumped 176.54 to 13,236.01.

In markets abroad, stock indexes were mixed across much of Europe.

Asian stocks tumbled, coming off the prior day’s sharp losses from Wall Street. Tokyo’s Nikkei 225 index sank 2.3%, South Korea’s Kospi dropped 2.4% and Hong Kong’s Hang Seng slipped 0.8%.


ASX 200 expected to rise

The Australian share market looks set to rise on Thursday after a rebound on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 31 points or 0.4% higher this morning.

Wall Street rose Wednesday after getting some relief from relaxing bond yields and falling oil prices.

The S&P 500 climbed 0.8% to claw back more than half its sharp tumble from a day earlier, which sent it to a four-month low. The Dow Jones Industrial Average rose 127 points, or 0.4%, a day after erasing the last of its gains for the year so far. The Nasdaq composite led the market with a gain of 1.4%.

All told, the S&P 500 rose 34.30 points to 4,263.75. The Dow added 127.17 to 33,129.55, and the Nasdaq jumped 176.54 to 13,236.01.

Stocks have struggled since the summer under the weight of soaring Treasury yields in the bond market. High yields undercut stock prices by pulling investment dollars away from stocks and into bonds. They also crimp corporate profits by making borrowing more expensive.


Market Watch

 

[bigdog]

Stock market today: Asian benchmarks mostly rise in subdued trading on US jobs worries

Asian shares are mostly higher in cautious trading after Wall Street drifted to a quiet close on worries about a too-hot U.S. job market.

apnews.com

Wall Street edges lower ahead of a highly anticipated jobs report​

By STAN CHOE

Wall Street drifted to a quiet close Thursday as pressure from the bond market remained high due to worries about a too-hot U.S. job market.

The S&P 500 slipped 5.56, or 0.1%, to 4,258.19, a day before a highly anticipated report on the job market that could sway the Federal Reserve’s view on interest rates. The Dow Jones Industrial Average edged down by 9.98 points, or less than 0.1%, to 33,119.57. The Nasdaq composite dipped 16.18, or 0.1%, to 13,219.83.

Stocks have struggled since the summer under the weight of soaring Treasury yields in the bond market, which undercut stock prices and crimp corporate profits. Yields have leaped as traders acquiesce to a new normal where the Federal Reserve is likely to keep its main interest rate at a high level for a long time, as it tries to extinguish high inflation.

Treasury yields wavered up and down Thursday after a report showed fewer U.S. workers applied for unemployment benefits last week than economists expected. That’s a sign fewer workers are getting laid off than expected, which is normally a good sign.

But the worry now is that too strong of a job market could put upward pressure on inflation. That’s why the Fed has raised its main interest rate to the highest level since 2001, to intentionally slow the job market.

“Even as the Fed has taken aggressive action to soften labor market conditions, businesses continue to hold on to workers,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics.

A more comprehensive report on the overall U.S. job market is due Friday, and economists expect it to show hiring slowed to a pace of 163,000 jobs added in September from 187,000 in August.

After initially jumping on the jobless claims report, the yield on the 10-year Treasury later pulled back. The 10-year yield was at 4.71%, down from 4.73% late Wednesday. Earlier this week, it hit its highest level since 2007.

The 10-year Treasury is the centerpiece of the bond market, and movements in its yield ripple across the entire economy. Where it’s heading in the next three to six months has a wide range of potential outcomes, according to Bruno Braizinha, rates strategist at Bank of America.

Braizinha said the yield could drop back to 4% to 4.25% if upcoming reports show the economy weakening enough to undercut inflation but not so much that it causes a sharp recession.

But he also said in a BofA Global Research report that it could top 5.50% if economic data strengthen so much that it pushes the Fed to keep hiking rates.

A recent pullback in the price of oil has offered some relief on the inflation front for both U.S. households and the Federal Reserve.

After charging from $70 in the summer to more than $93 last week, the price of a barrel of benchmark U.S. crude has slumped sharply. It fell another $1.91 to settle at $82.31, a day after tumbling more than $5 for its worst drop in more than a year. Brent crude, the international standard, lost $1.74 to $84.07 per barrel.

On Wall Street, Clorox fell 5.2% after the company described how big a loss it expects to take for its latest quarter because of a previously disclosed cybersecurity attack. The company said its shipments had been in line with its expectations before the attack caused widespread disruptions.

Rivian Automotive sank 22.9% after the electric vehicle maker said it will raise $1.5 billion by selling debt that could later convert into stock.

On the winning side was Lamb Weston, which sells frozen fries, hash browns and other potato products. It jumped 8% after reporting stronger profit for its latest quarter than analysts expected. The company also raised its profit forecast for the fiscal year, saying it’s benefiting after raising prices for its products.

In stock markets abroad, indexes moved only modestly across much of Europe and of Asia. Japan’s Nikkei 225 was an outlier and jumped 1.8%. It’s been one of the world’s better stock markets this year.

ASX 200 expected to edge higher​

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

Wall Street drifted to a quiet close Thursday as pressure from the bond market remained high due to worries about a too-hot U.S. job market.

The S&P 500 slipped 5.56, or 0.1%, to 4,258.19, a day before a highly anticipated report on the job market that could sway the Federal Reserve’s view on interest rates. The Dow Jones Industrial Average edged down by 9.98 points, or less than 0.1%, to 33,119.57. The Nasdaq composite dipped 16.18, or 0.1%, to 13,219.83.


Market Watch

 

[bigdog]

Stock market today: Wall Street leaps after eventually finding things to like in nuanced jobs report

Wall Street rallied in a whipsaw Friday and erased its morning losses after looking deeper into the nuances of a surprisingly strong report on the U.S. job market.

apnews.com

Wall Street leaps after eventually finding things to like in nuanced jobs report​

By STAN CHOE

Wall Street rallied in a whipsaw Friday and erased its morning losses after looking deeper into the nuances of a surprisingly strong report on the U.S. job market.

The S&P 500 climbed 1.2% after charging back from an earlier drop of 0.9%. The Dow Jones Industrial Average rose 288 points, or 0.9%, and the Nasdaq composite flipped to a gain of 1.6%.

Stocks initially tumbled after a report showed U.S. employers added nearly twice as many jobs last month as economists expected. The strength raised worries that a too-hot job market could keep upward pressure on inflation, which in turn could push the Federal Reserve to keep interest rates higher than investors want.

Treasury yields leaped following the release of the report, and the yield on the 10-year Treasury again soared to its highest level since 2007. It was at 4.78%, up from 4.72% late Thursday.

Wall Street hates high interest rates because they knock down prices for all kinds of investments. And even though the job market hasn’t faltered yet, despite the Fed pulling its main interest rate to the highest level since 2001, high rates work to extinguish high inflation by slowing the entire economy. That raises the risk of a recession down the road.

But Treasury yields pared their gains as the morning progressed, particularly shorter-term ones, as economists pointed to some more encouraging data within the jobs report.

The two-year Treasury yield more closely tracks expectations for action by the Fed, and it quickly soared from 5.04% just before the release of the jobs report to 5.20% shortly afterward. It then pulled back to 5.08%.

Among the potentially encouraging signals for the Fed: Workers’ average wages rose at a slower rate in September than economists expected. While that’s discouraging for workers trying to keep up with inflation, it could remove some inclination by companies to keep raising prices for their products.

The Fed should be focusing on such moderate wage gains, rather than the growth in jobs, said Brian Jacobsen, chief economist at Annex Wealth Management.

“The labor market isn’t overheating, it’s still healing,” he said.

Average hourly earnings rose at the slowest rate, on a year-over-year basis, since June 2021.

“Like most reports, Fed will find things to like and dislike here,” according to Andrew Patterson, senior economist at Vanguard.

That raises the stakes for upcoming reports next week on inflation at both the consumer and wholesale levels. They’re the next big data points due before the Fed makes its next announcement on interest rates on Nov. 1.

Some economists said the Fed may also not need to do as much with its overnight interest rate after financial markets have already done some of its work for it. The 10-year Treasury is the centerpiece of the bond market, and it’s already leaped sharply from less than 3.50% during the summer and from just 0.50% early in the pandemic.

The higher 10-year yield raises rates for mortgages and all kinds of other loans, which can put the brakes on the economy and inflation.

A strong job market also carries some rewards for financial markets in the short term. It means the economy is still doing well despite high rates, which could support corporate profits.

The day’s whiplash for stocks meant the S&P 500 went from a loss of 0.9% to a gain of as much as 1.5% That swing of 2.4 percentage points was the S&P 500’s largest since March, when high interest rates triggered a crisis in the banking industry that sent financial markets around the world into turmoil.

Wall Street’s swings for the day were encapsulated by Levi Strauss, which went from an early loss of 6% to a gain of 1% and back to a loss of 0.8%.

The company reported slightly stronger profit for the latest quarter than analysts expected. But its revenue fell short of expectations, and it said it expects earnings for its full fiscal year to fall at the low end of its forecasted range.

Next week will see the unofficial start to earnings reporting season for the S&P 500, with Delta Air Lines, JPMorgan Chase and UnitedHealth Group among the big companies scheduled on the calendar.

General Motors rose 1.9% after the United Auto Workers union said it will not expand its strikes against Detroit’s three automakers. The union said GM made a breakthrough concession on unionizing electric vehicle battery plants.

All told, the S&P 500 rose 50.31 points to 4,308.50. The Dow gained 288.01 to 33,407.58, and the Nasdaq jumped 211.51 to 13,431.34.

Oil prices also swung several times through the day, continuing a choppy stretch. A barrel of benchmark U.S. crude rose 48 cents to settle at $82.79, while Brent crude, the international standard, rose 51 cents to $84.58.

U.S. crude has been generally pulling back since topping $93 per barrel last week. That’s offered some relief on the inflation front after crude had been charging higher from $70 in the summer.

In stock markets abroad, indexes were higher across much of Europe and Asia. Japan’s Nikkei 225 was an outlier and slipped 0.3%

 

[divs4ever]

Japan has awoken and more things are going to get broken​

Japan has awoken and more things are going to get broken

5% short rates in the US are sucking global capital into the US and more things are going to get broken.

www.livewiremarkets.com

 

[bigdog]

ASX 200 expected to rise gain​

The Australian share market looks set to open the week higher following a strong finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 58 points or 0.8% higher on Monday.

Wall Street rallied in a whipsaw Friday and erased its morning losses after looking deeper into the nuances of a surprisingly strong report on the U.S. job market.

The S&P 500 climbed 1.2% after charging back from an earlier drop of 0.9%. The Dow Jones Industrial Average rose 288 points, or 0.9%, and the Nasdaq composite flipped to a gain of 1.6%.

All told, the S&P 500 rose 50.31 points to 4,308.50. The Dow gained 288.01 to 33,407.58, and the Nasdaq jumped 211.51 to 13,431.3

Market Watch

 

[bigdog]

Stock market today: Rate hopes push Asian shares higher while oil prices edge lower

Asian shares are higher after Wall Street advanced on potentially encouraging news about interest rates, which have been dragging markets lower since the summer.

apnews.com

Oil prices climb following the latest Gaza war, but stocks rise with rate hopes​

By STAN CHOE

Oil prices climbed Monday on worries about violence in the Middle East. The stock market was less fearful, though, and flipped from early losses to gains.

The S&P 500 rose 27.16, or 0.6%, following some potentially encouraging news on interest rates, which have been dragging Wall Street mainly lower since the summer.

The Dow Jones Industrial Average gained 197.07 points, or 0.6%, to 33,604.65, and the Nasdaq composite climbed 52.90, or 0.4%, to 13,484.24.

Stocks perked higher after two officials at the Federal Reserve suggested they may not need to raise interest rates again at their next meeting Nov. 1, because a jump in longer-term bond yields may be helping to cool inflation without further market-rattling hikes by the Fed

That gave stocks some oxygen and helped them erase modest losses from the morning. The S&P 500 had sagged by as much as 0.6% in its first trading after Hamas launched a surprise attack against Israel, which then formally declared war.

The area under conflict is not home to major oil production, but fears that the fighting could spill into the politics around the crude market sent a barrel of U.S. oil up $3.59 to $86.38. Brent crude, the international standard, rose $3.57 to $88.15 per barrel.

One potential outcome of the violence is a slowdown in Iranian oil exports, which have been growing this year, according to Barclays energy analyst Amarpreet Singh. Less supply of crude would raise its price, all else equal.

The conflict could also hurt the possibility of improving relations between Israel and Saudi Arabia, which is the world’s second-largest producer of oil. Traders may be taking off some bets that Saudi Arabia would raise its oil output to help secure a deal on Israel with the United States, according to Singh.

Oil prices had already been volatile leading into the weekend. A barrel of U.S. crude jumped from less than $70 during the summer to more than $90 last week, raising the pressure on inflation and the overall economy. It pulled back sharply last week before jumping again after the fighting began in Israel.

Monday’s rise in crude helped oil and gas stocks to some of Wall Street’s biggest gains. Marathon Oil rose 6.6%, and Halliburton climbed 6.8%.

Stocks of defense contractors that make weapons were also particularly strong. Northrop Grumman rallied 11.4%, and L3Harris Technologies gained 10%.

On the opposite end were companies that count fuel as among their biggest expenses. United Airlines sank 4.9%, and Carnival fell 4.3%.

But it’s interest rates, and expectations for where they will go, that have been driving Wall Street’s swings more than anything since the start of last year.

With inflation still too high for policy makers’ liking, and the U.S. economy in solid shape, expectations have built on Wall Street that the Federal Reserve will keep its main interest rate high for longer than traders had hoped.

The Fed has already hiked its overnight rate to the highest level since 2001, and it indicated last month it may cut rates by less next year than earlier expected. With the Fed also continuing to shrink its trove of bond investments, the yield on the 10-year Treasury has jumped to its highest level since 2007.

Wall Street hates higher interest rates because they knock down prices for stocks and other investments. They also make it more expensive for all kinds of companies and households to borrow money, which puts the brakes on the economy.

The 10-year yield has climbed to 4.80%, up from 3.50% during the summer and from just 0.50% early in the pandemic. Trading in the U.S. Treasury market was closed Monday for a holiday.

Philip Jefferson, vice chair of the Fed’s board and a close ally of Chair Jerome Powell, said in a speech Monday that he would “remain cognizant” of the higher bond rates and “keep that in mind as I assess the future path of policy.”

Lorie Logan, president of the Federal Reserve Bank of Dallas and a voting member of the Fed’s rate setting committee, said in a separate speech that there may be less need to raise the Fed’s main interest rate if long-term rates stay high.

Reports this week on inflation at both the consumer and wholesale levels are the next big data points due before the Fed makes its next announcement on interest rates on Nov. 1.

This upcoming week will also bring the unofficial start to earnings reporting season for the S&P 500, with Delta Air Lines, JPMorgan Chase and UnitedHealth Group among the big companies scheduled on the calendar.

In Israel, the country’s central bank said it will sell up to $30 billion in foreign exchange to prop up the shekel, whose value tumbled after the violence began. It also said it will provide up to $15 billion to support market liquidity.

The shekel was down 2.3% against the U.S. dollar and back to where it was in 2016.

Besides the U.S. dollar, another investment that usually does well in times of stress also rose. Gold added $19.10 to $1,864.30 per ounce.

In stock markets abroad, indexes were modestly lower in Europe and mixed in Asia. Stocks in Shanghai fell 0.4% after trading reopened following a weeklong holiday.

ASX 200 expected to rise again​

The Australian share market is set to rise again on Tuesday following a decent start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 30 points or 0.45% higher.

Oil prices climbed Monday on worries about violence in the Middle East. The stock market was less fearful, though, and flipped from early losses to gains.

The S&P 500 rose 27.16, or 0.6%, following some potentially encouraging news on interest rates, which have been dragging Wall Street mainly lower since the summer.

The Dow Jones Industrial Average gained 197.07 points, or 0.6%, to 33,604.65, and the Nasdaq composite climbed 52.90, or 0.4%, to 13,484.24.


Market Watch

 

[bigdog]

Stock market today: Asian shares rise after eased pressure on bonds pushes Wall Street higher

Shares are higher in Asia, tracking Wall Street gains following an easing of pressure from the bond market.

apnews.com

Wall Street rises as pressure relaxes from the bond market​

By STAN CHOE

U.S. stocks rose Tuesday after pressure relaxed on Wall Street from the bond market.

The S&P 500 gained 22.58, or 0.5%, to 4,358.24. The Dow Jones Industrial Average rose 134.65, or 0.4%, to 33,739.30, and the Nasdaq composite climbed 78.60, or 0.6%, to 13,562.84.

Some of the strongest action was in the bond market, where Treasury yields eased after trading resumed following a holiday on Monday. It was the first opportunity for yields to move since the weekend’s surprise attack by Hamas on Israel injected caution into global markets.

Perhaps more impactfully, it was also the first trading for Treasurys since speeches by Federal Reserve officials that traders took as a suggestion the Fed may not raise its main interest rate again. The comments helped U.S. stocks swing from early losses to gains on Monday.

The yield on the 10-year Treasury fell to 4.65% from 4.80% late Friday, which is a considerable move for the bond market. The two-year Treasury yield, which moves more closely with expectations for the Fed’s actions, sank to 4.97% from 5.09%.

Treasury yields had jumped last week to their highest levels in more than a decade, following the lead of the Fed’s main interest rate, which is at heights unseen since 2001. They’ve been the main reason for the stock market’s stumbles since the summer, as worries rise that the Fed will keep its federal funds rate at a high level for longer than Wall Street hopes.

High rates and longer-term yields knock down prices for stocks and other investments, while slowing the economy in hopes of undercutting high inflation.

But the swift rise in the 10-year Treasury yield has helped pull the average long-term mortgage rate up to its highest level since 2000, and Fed officials have intimated such moves may help contain high inflation on their own.

“I actually don’t think we need to increase rates anymore,” Raphael Bostic, president of the Federal Reserve Bank of Atlanta, said in remarks before the American Bankers Association on Tuesday. “I think we are at a good place in that regard.”

A day earlier, two other Fed officials made statements that traders saw as a hint no more rate hikes may be coming. One was Philip Jefferson, who is the Fed’s vice chair. The other was Dallas Fed President Lorie Logan, who has been among the more “hawkish” Fed members pushing for tough interest rates to battle high inflation, said Solita Marcelli, chief investment officer, Americas, at UBS Global Wealth Management.

The Fed’s next announcement on interest rates is due Nov. 1. Traders are now betting on a nearly 73% chance that the year will end without any more Fed rate hikes, according to data from CME Group. That’s up from the 53% chance seen a week ago.

The International Monetary Fund on Tuesday lowered its forecast for global economic growth next year, in part because of the effect of high rates around the world, though it upgraded its forecasts for U.S. economic growth specifically.

Fighting in Gaza is the latest threat for the world’s economy, particularly after it pushed oil prices higher on Monday. While the region under conflict doesn’t produce much oil, the fear is that the violence could spill over into the politics surrounding the crude market. That in turn could hurt the flow of petroleum.

A barrel of U.S. crude fell 41 cents to settle at $85.97, giving back a bit of its $3.59 leap a day before. Brent crude, the international standard, fell 50 cents to $87.50 per barrel.

On Wall Street, some of Monday’s big stock moves also retraced themselves. Stocks of defense contractors that make weapons gave back some of their big gains, and Northrop Grumman slipped 1.4%. L3Harris Technologies fell 1.5%, though both are still up more than 8% for the week.

Airline stocks also clawed back some of their losses. They have already suspended flights into and out of Israel, and they count fuel among their highest costs. Delta Air Lines rose 1.6%, and United Airlines climbed 1.5%.

PepsiCo rose 1.9% after it reported stronger profit and revenue for its latest quarter than analysts expected. The snack and drink company charged higher prices for its products during the quarter, which helped to make up for a drop in how much it sold. It also raised its forecast for profits for the full year.

Later this week, the momentum will pick up for big companies reporting their results for the summer. Delta Air Lines, JPMorgan Chase and UnitedHealth Group are among the big names on the calendar.

This could be the first quarter in a year where S&P 500 companies report stronger profits versus year-ago levels, and analysts are forecasting a broad 0.3% decline, according to FactSet.

In stock markets abroad, indexes rallied in Europe but were mixed in Asia.

In the latest signal of trouble in China’s rattled property development industry, Country Garden warned that it likely won’t be able to make some debt repayments when due and that its sales were under “remarkable pressure.” The company had earlier been hailed as a model real estate company by Chinese authorities.

ASX 200 expected to rise again​

The Australian share market looks set to rise again on Wednesday following a solid session on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 33 points or 0.45% higher this morning.

U.S. stocks rose Tuesday after pressure relaxed on Wall Street from the bond market.

The S&P 500 gained 22.58, or 0.5%, to 4,358.24. The Dow Jones Industrial Average rose 134.65, or 0.4%, to 33,739.30, and the Nasdaq composite climbed 78.60, or 0.6%, to 13,562.84.

Some of the strongest action was in the bond market, where Treasury yields eased after trading resumed following a holiday on Monday. It was the first opportunity for yields to move since the weekend’s surprise attack by Hamas on Israel injected caution into global markets.


Market Watch

 

[bigdog]

Stock market today: Asian shares rise with eyes on prices, war in Middle East

Asian shares are mostly higher as investors await the release of U.S. consumer price data and keep a cautious watch on the war between Israel and the Palestinian militant group Hamas.

apnews.com

Wall Street ticks higher after the first of 2 big updates on inflation this week​

By STAN CHOE

Most U.S. stocks ticked higher Wednesday amid mixed yields in the bond market, which has been the main driver of Wall Street’s moves recently.

The S&P 500 rose 18.71, or 0.4%, to 4,376.95 for its fourth straight gain. The Dow Jones Industrial Average added 65.57 points, or 0.2%, to 33,804.87, and the Nasdaq composite gained 96.83, or 0.7%, to 13,659.68.

Wall Street has been mostly struggling since the summer as longer-term yields shoot higher in the bond market, weighing on prices for all kinds of investments. Some relief has come this week, and yields have eased after officials at the Federal Reserve suggested they may be done raising their main overnight interest rate.

The yield on the 10-year Treasury fell to 4.56% from 4.66% late Tuesday and from more than 4.80% last week, when it reached its highest level since 2007. Besides hurting prices for investments, high yields have jacked up rates for mortgages and other loans, which saps momentum from the economy.

But the two-year Treasury yield, which moves more closely with expectations for the Fed, ticked up to 4.99% from 4.97%.

Yields were mixed after a report showed inflation at the wholesale level was stronger last month than economists expected. A report showing how much inflation U.S. households are facing will arrive on Thursday, and economists expect it to show a slowdown.

While the report on wholesale inflation was above expectations, Rubeela Farooqi, chief U.S. economist at High Frequency Economics, said it wasn’t enough to change her forecast that the Fed’s main interest rate is already at its peak.

“Fed officials are gradually taking comfort with the fact that the July rate hike may have been the last one in this historic tightening cycle,” said Gregory Daco, chief economist at EY.

Minutes from the Fed’s meeting last month suggested officials see the outlook for the U.S. economy as particularly uncertain. They said they were ready to “proceed carefully” in deciding what to do next with rates.

A Fed on hold could provide some oxygen for financial markets. They’ve struggled as the 10-year yield has jumped for a few reasons, including a remarkably resilient U.S. economy that has erased some worries about a possible recession and removed expectations for the Fed to take it much easier on short-term rates.

With the U.S. government racking up big deficits, which requires more borrowing, and buyers in shorter supply, the pressure has been mostly upward on Treasury yields.

Strategists at Bank of America say it’s hard to forecast where the 10-year Treasury yield will go, but they can’t rule out a climb above 5%.

They see U.S. rates stopping their climb following clearer signs that high rates are becoming “sufficiently restrictive” to the economy. That could show itself through a moderating U.S. economy, struggles for stocks and other risky investments and a shift in commentary by Fed officials.

“Recent Fed commentary suggests concern over financial conditions; we suspect the Fed would judge another 10% decline in risk assets reflects sufficiently restrictive rates,” strategists led by Mark Cabana wrote in a BofA Global Research report.

A further pullback in crude oil prices is helping to take some heat off inflation and support Wall Street.

A barrel of U.S. crude oil slumped $2.48 to settle at $83.49. Brent crude, the international standard, fell $1.83 to $85.82 per barrel.

They’ve given back much of their strong gains from earlier this week, triggered by fighting in Gaza. Though the area doesn’t produce much oil, the worry was that the violence could spill into the politics around the crude market and hurt the flow of petroleum.

Energy stocks in the S&P 500 fell to the sharpest losses among the 11 sectors that make up the index.

Exxon Mobil felt extra pressure after it said it would buy Pioneer Natural Resources in an all-stock deal valued at $59.5 billion. Exxon Mobil fell 3.6%, and Pioneer Natural Resources rose 1.4%.

Birkenstock stumbled in its debut on Wall Street. The maker of distinctive sandals fell 12.6% after initially pricing its stock at $46 per share, which valued the company at $8.64 billion.

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

In South Korea, the Kospi jumped 2% after Samsung Electronics reported improved quarterly earnings. Analysts say the worst of the post-pandemic contraction in demand for computer chips and electronic devices may be over.

ASX 200 expected to edge higher​

The Australian share market looks set to open slightly higher on Thursday following a positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 6 points higher this morning.

Most U.S. stocks ticked higher Wednesday amid mixed yields in the bond market, which has been the main driver of Wall Street’s moves recently.

The S&P 500 rose 18.71, or 0.4%, to 4,376.95 for its fourth straight gain. The Dow Jones Industrial Average added 65.57 points, or 0.2%, to 33,804.87, and the Nasdaq composite gained 96.83, or 0.7%, to 13,659.68.

Wall Street has been mostly struggling since the summer as longer-term yields shoot higher in the bond market, weighing on prices for all kinds of investments. Some relief has come this week, and yields have eased after officials at the Federal Reserve suggested they may be done raising their main overnight interest rate.


Market Watch

 

[bigdog]

Stock market today: Asian markets slip as rising yields in the bond market pressure stocks

Shares have fallen in Asia after a retreat on Wall Street as the vise tightened from rising yields in the bond market.

apnews.com

Wall Street falls as the vise tightens from rising yields in the bond market​

By STAN CHOE

U.S. stocks slipped Thursday after the clamps tightened on Wall Street from rising yields in the bond market.

The S&P 500 fell 27.34, or 0.6%, to 4,349.61. It was the first drop for the index in five days, breaking its longest winning streak since August.

The Dow Jones Industrial Average dropped 173.73 points, or 0.5%, to 33,631.14, and the Nasdaq composite sank 85.46, or 0.6%, to 13,574.22.

The stock market has largely been taking its cue from the bond market recently, and weak results announced in the afternoon for an auction of 30-year Treasury bonds sent yields higher on all kinds of Treasurys. Higher yields can knock down prices for stocks, all else equal, and slow the economy by making borrowing more expensive.

Yields had already been on the rise in the morning following a report that showed inflation at the consumer level was a touch higher last month than economists expected. That raises worries about the Federal Reserve keeping its main interest rate high for a long time, as it tries to drive down inflation.

The inflation report also had some encouraging nuggets for financial markets underneath the surface. After ignoring prices for food and fuel, which Fed officials see as a better predictor of where inflation may be heading, prices that consumers had to pay last month were in line with expectations. They also continued to decelerate from earlier months.

A second economic report from the morning likewise offered both encouragement and caution for financial markets. It said slightly fewer U.S. workers applied for unemployment benefits last week than expected. On one hand, that indicates a job market with few layoffs, which means strength for the overall economy. But it could also be adding fuel to keep upward pressure on inflation.

Following the reports, the 10-year Treasury yield rose to 4.70% from 4.56% late Wednesday. The two-year Treasury yield, which more closely tracks expectations for the Fed, climbed to 5.07% from 4.99%.

Yields are still flat to down slightly for the week so far. After jumping last week to their highest levels in more than a decade, yields regressed following speeches that investors saw as hints that the Fed may not hike its main overnight interest rate anymore.

The big jump for the 10-year Treasury yield since the summer has pulled mortgage rates to their highest levels since the turn of the millennium, and such moves could continue to slow the economy and hopefully inflation without requiring more hikes by the Fed.

Nothing in Thursday’s inflation report should sway the Fed one way or the other when it comes to what it will do on Nov. 1, when it announces its next move on interest rates, said Seema Shah, chief global strategist at Principal Asset Management. She called the data “reassuringly uneventful.”

“The question around whether or not there will be one more interest rate hike is yet to be answered,” she said.

Rising crude oil prices have put extra pressure on inflation recently, and they were volatile again Thursday. After jumping early in the day, a barrel of benchmark U.S. crude slipped 58 cents to settle at $82.91. Brent crude, the international standard, rose 18 cents to $86.00 per barrel.

Since their summertime leap and subsequent regression a couple weeks ago, crude oil prices have been shaky following the latest fighting in Gaza. The worry is the violence could lead to disruptions in the supply of petroleum.

Higher oil prices add costs across the economy, and airlines are particularly hurt because fuel is one of their biggest expenses.

Delta Air Lines fell 2.3% lower despite reporting stronger profit for the summer than analysts expected. It also said it’s seeing encouraging trends for bookings going into the holiday season.

It’s at the head of a reporting season for S&P 500 companies that could mark a return to profit growth following three straight quarters of declines.

Several financial giants will report on Friday, including Citigroup, JPMorgan Chase and Wells Fargo, along with UnitedHealth Group.

Earnings reports from the banks could offer a window into how U.S. households are handling still-high inflation. Resilient spending by those households has been a big factor keeping the U.S. economy out of a long-predicted recession. Bank stocks were mixed ahead of Friday’s reports, with JPMorgan Chase down 0.2% and Wells Fargo up 0.1%.

Ford Motor slumped 2% after the United Auto Workers union significantly escalated its walkout against Detroit automakers. In a surprise move, 8,700 workers left their jobs at a Ford truck plant in Louisville, Kentucky.

In stock markets abroad, indexes were mixed in Europe after rising sharply in much of Asia.

ASX 200 expected to sink​

The Australian share market looks set to end the week on a disappointing note following a poor session on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 58 points or 0.85% lower this morning.

U.S. stocks slipped Thursday after the clamps tightened on Wall Street from rising yields in the bond market.

The S&P 500 fell 27.34, or 0.6%, to 4,349.61. It was the first drop for the index in five days, breaking its longest winning streak since August.

The Dow Jones Industrial Average dropped 173.73 points, or 0.5%, to 33,631.14, and the Nasdaq composite sank 85.46, or 0.6%, to 13,574.22.


Market Watch

 

[bigdog]

Stock market today: Wall Street struggles as war worries collide with hope for stronger profits

U.S. stocks mostly fell after getting pulled in opposite directions by competing waves of optimism and fear. The S&P 500 slipped 0.5% Friday.

apnews.com

Wall Street struggles as war worries collide with hope for stronger profits​

By STAN CHOE

U.S. stocks mostly fell Friday after fears about war in the Middle East collided in financial markets with hopes for stronger profits at big U.S. companies.

Oil prices leaped, and Treasury yields fell after Israel’s military ordered the evacuation of northern Gaza ahead of a possible ground invasion, according to the United Nations, which warned of potentially “devastating humanitarian consequences.” But several U.S. banking giants at the same time said their profits during the summer were better than feared, which offered hope on Wall Street for an earning reporting season that may deliver the first growth for big companies in a year.

All the push and pull sent the S&P 500 down by 21.83 points, or 0.5%, to 4,327.78. The Dow Jones Industrial Average edged up by 39.15, or 0.1%, to 33,670.29, and the Nasdaq composite dropped 166.98, or 1.2%, to 13,407.23.

Some of the strongest action was in the oil market, where a barrel of benchmark U.S. crude jumped $4.78 to settle at $87.69. Brent crude, the international standard, climbed $4.89 to $90.89 per barrel.

While the Gaza region is not a major producer of oil, the fear is that the violence could spill into the politics around the crude market and eventually lead to disruptions in the flow of petroleum.

Worries about the war also sent Treasury yields falling, which often happens when investors head for safer investments during times of stress. The yield on the 10-year Treasury fell to 4.63% from 4.70% late Thursday.

Yields also eased after another official at the Federal Reserve said the central bank may be done hiking its main interest rate following a blistering campaign that began early last year.

Philadelphia Fed President Patrick Harker said again Friday that he believes “we are at the point where we can hold rates where they are,” as long as economic and financial conditions continue on their current course.

The Fed has pulled its overnight interest rate to the highest level since 2001, up from virtually zero at the start of last year, in hopes of starving painful inflation of its fuel. High rates and longer-term bond yields knock down prices for all kinds of investments, while also slowing the overall economy.

Harker said the Fed can afford to stop hiking rates and see what happens, particularly with so many economic uncertainties out there. Besides the war in Gaza and oil prices, there are also worries about the effects of workers’ strikes across the country and Capitol Hill dysfunction that could result in another U.S. government shutdown.

“By doing nothing, we are still doing something,” Harker said about holding rates steady at their high levels. “And, actually, we are doing quite a lot.”

The two-year Treasury yield, which tends to move closely with expectations for Fed action, fell to 5.03% from 5.07% late Thursday.

A report on Friday suggested sentiment among U.S. consumers, whose spending has been one of the main drivers keeping the economy out of a recession, may be waning. A preliminary reading from the University of Michigan said consumer sentiment weakened by more than economists expected, primarily because of increased worries about inflation.

U.S. consumers are girding for inflation of 3.8% for the year ahead, up from 3.2% last month. It’s the highest such reading since May.

The Fed pays attention to the consumer sentiment report, particularly on expectations for inflation. The uptick there could keep alive the possibility of another hike to rates by the Fed in December or January, said Bill Adams, chief economist for Comerica Bank.

Helping to support Wall Street were JPMorgan Chase and Wells Fargo, which reported stronger profit for the summer quarter than analysts expected.

JPMorgan Chase rose 1.5% after its profit for the third quarter climbed 35% from a year earlier. It benefited from a rise in interest rates, but its CEO Jamie Dimon also warned that “this may be the most dangerous time the world has seen in decades.”

Wells Fargo rose 3.1% after it likewise topped analysts’ expectations for profit during the summer quarter. Bank customers continue to borrow, even at higher interest rates, as consumers put more and more expenses on their credit cards.

UnitedHealth Group also beat Wall Street’s profit expectations, and its stock climbed 2.6%.

Dollar General jumped to the biggest gain in the S&P 500, up 9.2%, after it said Todd Vasos will be returning as CEO.

On the losing end of Wall Street were travel-related companies. Norwegian Cruise Line fell 4.1%, and Delta Air Lines sank 3%.

Investment giant BlackRock fell 1.3%, even though it reported stronger profit for the latest quarter than analysts expected.

BlackRock said all the uncertainty around financial markets and the outlook for interest rates helped drive clients to pull some money out of long-term investments as they hide out in cash, which is finally paying higher yields.

In stock markets abroad, indexes were lower across Europe after much of Asia.

AN ALL RED SEAS EXCEPT FOR THE DOW JONES