NYSE Dow Jones finished today at:

[bigdog]

Stock market today: Asian stocks are mixed after Wall Street slips to its worst loss in 4 months

Asian shares are mixed after Wall Street fell to its worst loss since September as the Federal Reserve indicated cuts to interest rates are not imminent.

apnews.com

Wall Street drops to worst loss in months with Big Tech, hope for March rate cut​

By STAN CHOE

NEW YORK (AP) — Big Tech stocks burned by the downside of high expectations triggered a sharp slide for Wall Street Wednesday. The market’s losses worsened after the Federal Reserve indicated it likely won’t cut interest rates in March, as many traders had hoped.

The S&P 500 dropped 1.6% for its worst day since September. It veered between more modest and sharper losses through a shaky afternoon as traders delayed bets for when the Fed would begin easing its main interest rate from its highest level since 2001.

The slide for Big Tech stocks dragged the Nasdaq composite to a market-leading loss of 2.2%. The Dow Jones Industrial Average, which has less of an emphasis on tech, fell a more modest 0.8%, or 317 points.

Alphabet was one of the heaviest weights on the market, and it fell 7.5% despite reporting stronger profit and revenue for the latest quarter than analysts expected. Underneath the surface, analysts pointed to some concerning trends in how much Google’s parent company is earning from advertising.

The bigger challenge, though, may have been the high expectations the company faces after how much its stock soared last year. Other Big Tech stocks that also accounted for a disproportionate chunk of the S&P 500’s rally to a record likewise struggled Wednesday in the face of high expectations.

Microsoft fell 2.7% even though it delivered stronger profit and revenue than expected. One analyst, Dan Ives of Wedbush Securities, even called its quarterly report “a masterpiece that should be hung in the Louvre.”

Tesla, another member of the group of stocks nicknamed the “Magnificent Seven,” fell 2.2%. A judge in Delaware ruled a day earlier that its CEO, Elon Musk, is not entitled to the landmark compensation package earlier awarded to him.

The Magnificent Seven were responsible for the majority of the S&P 500’s return last year, and three more members are scheduled to report their latest quarter results on Thursday: Amazon, Apple and Meta Platforms, the parent company of Facebook and Instagram. Expectations are high for them, too.

Besides the Magnificent Seven, stocks have rallied to records because of hopes that a cooldown in inflation will convince the Federal Reserve to cut interest rates several times this year. Such cuts would relax the pressure on the economy and encourage investors to pay higher prices for stocks.

But the Fed on Wednesday left its main interest rate steady and made clear it “does not expect it will be appropriate” to cut rates “until it has gained greater confidence that inflation is moving sustainably toward” its goal of 2%.

“We’re not declaring victory at all,” Fed Chair Jerome Powell said. He said it’s unlikely the Fed will get to that level of comfort by its next meeting in March.

“It’s probably not the most likely case,” he said, which sent stocks skidding late in trading.

But Powell also said Fed officials already have some confidence that day will arrive. They just need to see more months of data confirming that inflation is heading sustainably lower. “We have confidence,” he said. “It has been increasing, but we want to get greater confidence.”

Powell acknowledged the difficult position the Fed is in, with dangers arising from both acting too quickly and too late, even though “overall it’s a good picture” for the economy at the moment. Cutting rates too soon could ignite inflationary pressures, while acting too late would mean unnecessary pain for the economy and job market.

“Given how strong the economy has been, the Fed probably figures it can err on the side of cutting later and slower than what the market is pricing,” said Brian Jacobsen, chief economist at Annex Wealth Management.

Treasury yields in the bond market swung up and down following the Fed’s announcement. They had been lower earlier following a couple softer-than-expected reports on the economy.

One report said that growth in pay and benefits for U.S. workers was slower in the final three months of 2023 than economists expected. While all workers would like bigger raises, the cooler-than-expected data could further calm what was one of the Fed’s big fears: that too-big pay gains would trigger a vicious cycle that ends up keeping inflation high.

A separate report from the ADP Research Institute also suggested hiring by non-government employers was softer in January than economists expected. The Fed and Wall Street are hoping that the job market cools by just the right amount, enough to keep a lid on inflation but not so much that it causes a recession. A more comprehensive jobs report from the U.S. government will arrive Friday.

The yield on the 10-year Treasury fell to 3.92% from 4.04% late Tuesday. In October, it was above 5% and at its highest level since 2007.

All told, the S&P 500 fell 79.32 points to 4,845.65. The Dow dropped 317.07 to 38,150.30, and the Nasdaq slumped 345.89 to 15,164.01.

In stock markets abroad, indexes slumped sharply again in China amid continued worries about a weak economic recovery and troubles for the country’s heavily indebted property developers.

Stocks were mixed elsewhere in Asia and down modestly in Europe.

ASX 200 expected to sink​

The Australian share market looks set to sink on Thursday following a very poor night of trade on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 84 points or 1.2% lower this morning.

Big Tech stocks burned by the downside of high expectations triggered a sharp slide for Wall Street Wednesday. The market’s losses worsened after the Federal Reserve indicated it likely won’t cut interest rates in March, as many traders had hoped.

The S&P 500 dropped 1.6% for its worst day since September. It veered between more modest and sharper losses through a shaky afternoon as traders delayed bets for when the Fed would begin easing its main interest rate from its highest level since 2001.

The slide for Big Tech stocks dragged the Nasdaq composite to a market-leading loss of 2.2%. The Dow Jones Industrial Average, which has less of an emphasis on tech, fell a more modest 0.8%, or 317 points.

All told, the S&P 500 fell 79.32 points to 4,845.65. The Dow dropped 317.07 to 38,150.30, and the Nasdaq slumped 345.89 to 15,164.01.

 

[bigdog]

Stock market today: Asian shares mostly rise after Wall Street rebounds led by tech stocks

Asian shares are trading mostly higher, helped by optimism about technology shares following a Wall Street rally led by big tech stocks.

apnews.com

Wall Street rebounds to its best day in weeks as Big Tech leads the way​

By STAN CHOE

NEW YORK (AP) — Wall Street burst out of its hangover Thursday, and U.S. stocks bounced back in a widespread rally following their worst day since September.

The S&P 500 gained 1.2% to recover three quarters of its sharp loss from the day before. The Dow Jones Industrial Average rose 369 points, or 1%, while the Nasdaq composite leaped 1.3%.

Big Tech stocks led the way in a mirror reversal of the day before, when Alphabet and Microsoft sank despite reporting stronger profits than analysts expected. Microsoft climbed 1.6% a day after falling 2.7%. Google’s parent company, Alphabet, added 0.8% after tumbling 7.5%

Big Tech stocks are Wall Street’s most influential because they’re the biggest, and they’re facing high expectations after soaring much more than the rest of the market last year. Amazon, Apple and Meta Platforms reported their latest results after trading ended Thursday and faced similar pressure to deliver big numbers to justify their runs higher.

Meta Platforms, the owner of Facebook and Instagram, was a star in afterhours trading. It surged after topping analysts’ expectations for profit and revenue and saying it would start paying its shareholders a dividend.

Stocks broadly got a boost following a suite of reports suggesting the economy remains solid, while pressures on inflation may be easing. Such data could give the Federal Reserve more of the evidence it wants of a slowdown in inflation before it will deliver the cuts to interest rates that investors crave. A day earlier, stocks fell sharply after the Fed’s chair warned it doesn’t have enough such evidence

Merck climbed 4.6% after the pharmaceutical giant delivered stronger profit and revenue for the latest quarter than analysts expected. Etsy jumped 9.1% after it added a partner from Elliott Investment Management to its board, who said he sees opportunity to significantly increase the company’s value.

On the losing end of Wall Street, New York Community Bancorp fell another 11.1% after plunging 37.7% a day before, when it reported a loss for its latest quarter and cut its dividend to build its financial strength. The surprising report caused stocks of other regional banks to tumble, reviving uncomfortable memories of the banking crisis last year that led to the collapses of Silicon Valley Bank, Signature Bank and others.

New York Community Bancorp had acquired much of Signature, and analysts say much of its struggles are related to that. But its losses tied to commercial real estate are a reminder of challenges that the entire industry faces. The KBW Nasdaq Regional Bank index fell 2.3%, following Wednesday’s tumble of 6%.

Peloton Interactive dropped 24.3% after it gave a forecast for upcoming revenue that fell short of analysts’ expectations. That was despite its roughly matching forecasts for the latest quarter.

All told, the S&P 500 rose 60.54 points to 4,906.19. The Dow added 369.54 to 38,519.84, and the Nasdaq rallied 197.63 to 15,361.64.

In the bond market, the yield on the 10-year Treasury fell to 3.86% from 3.92% late Wednesday.

It sank after one report showed that slightly more workers applied for unemployment benefits last week than expected. While no one wants workers to lose their jobs, the number is still low relative to history. And Wall Street wants to see a cooldown in the job market, which could keep a lid on inflationary pressures.

A separate report offered similar encouragement for traders. It said U.S. workers were much more productive in the last three months of 2023 than expected, producing more stuff per hour worked. Strong growth in productivity could allow workers to get bigger raises in pay without adding more pressure on inflation.

“If companies can generate strong productivity growth, they will be able to control costs and protect margins without sacrificing talent in an environment of still-elevated wages and fading pricing power,” said EY Chief Economist Gregory Daco.

Data released later in the morning suggested the U.S. manufacturing industry is improving after struggling for more than a year under the weight of high interest rates. Manufacturing activity shrank for a 15th straight month in January, but not by as much as economists expected. Growth in new orders is helping to boost the industry, according to the Institute for Supply Management.

Potentially concerning, though, was that prices for raw materials increased in January following eight months of decreases.

Traders are increasingly betting the Federal Reserve will begin cutting interest rates in May, after pushing back expectations from March. Whenever it does begin, it would mark a sharp turnaround after the Fed hiked its main interest rate to the highest level since 2001 in hopes of getting inflation under control.

High interest rates intentionally slow the economy, and they undercut prices for investments.

In stock markets abroad, London’s FTSE 100 slipped 0.1% after the Bank of England said it’s keeping its main interest rate at a near 16-year high as inflation in Britain unexpectedly rose to 4% in December.

Indexes were mixed across Europe and Asia.

ASX 200 expected to rebound​

The Australian share market looks set to end the week on a positive after Wall Street rebounds to its best day in weeks

According to the latest SPI futures, the ASX 200 is expected to open 30 points or 0.6% higher this morning.

Wall Street burst out of its hangover Thursday, and U.S. stocks bounced back in a widespread rally following their worst day since September.

The S&P 500 gained 1.2% to recover three quarters of its sharp loss from the day before. The Dow Jones Industrial Average rose 369 points, or 1%, while the Nasdaq composite leaped 1.3%.

Big Tech stocks led the way in a mirror reversal of the day before, when Alphabet and Microsoft sank despite reporting stronger profits than analysts expected. Microsoft climbed 1.6% a day after falling 2.7%. Google’s parent company, Alphabet, added 0.8% after tumbling 7.5%

All told, the S&P 500 rose 60.54 points to 4,906.19. The Dow added 369.54 to 38,519.84, and the Nasdaq rallied 197.63 to 15,361.64.

 

[bigdog]

Stock market today: Big Tech carries Wall Street to another record and winning week

Big Tech stocks carried Wall Street to another record high, even though many stocks fell amid worries about the downside of a hot economy.

apnews.com

Big Tech carries Wall Street to another record and winning week​

By STAN CHOE

NEW YORK (AP) — Big Tech stocks once again carried Wall Street to a record Friday, even though the majority of stocks fell amid worries about the downside of a hot economy.

Big gains for Meta Platforms and Amazon helped drive the S&P 500 index up by 1.1% to its latest all-time high. It’s in a torrid run where it’s climbed in 13 of the last 14 weeks. The Big Tech stocks, which are two of Wall Street’s most influential, also vaulted the Nasdaq composite up by 1.7%.

But the Dow Jones Industrial Average, which has less of an emphasis on tech, rose by a more modest 0.3%, or 134 points. And the Russell 2000 index of smaller stocks fell 0.6%.

Stocks felt pressure from much higher yields in the bond market after a report showed U.S. employers hired many more workers last month than economists expected.

While the strength is a boon for workers and keeps the risk of a recession at bay, the worry is that it could preserve some upward pressure on inflation. That in turn could mean a longer wait for the Federal Reserve to begin cutting interest rates.

Hopes for such cuts, which can relax the pressure on the economy and goose investment prices, have been a major reason the U.S. stock market has surged to record heights. Fed Chair Jerome Powell said earlier this week that it’s unlikely cuts will begin as soon as traders had been hoping.

“The Fed threw some cold water on the idea of a March rate cut less than 48 hours ago, and today’s surprisingly strong jobs report won’t dry things off,” said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley. “It’s definitely not the type of data the Fed had in mind when they said they wanted to see more evidence that inflationary pressures were under control.”

The yield for the 10-year Treasury leaped immediately after the release of the jobs report and climbed to 4.02% from 3.88% late Thursday.

Traders had already pushed out bets for the timing of the first Fed rate cut to May from March following Powell’s warning earlier this week. After the jobs report, traders shifted some bets even further out the calendar to June, according to data from CME Group.

Besides the overall hiring number, the jobs report included several signals showing much more strength than expected. Average hourly earnings for workers rose more in January than forecast. The unemployment rate unexpectedly did not get worse. And the government said hiring was actually much stronger in December than it had earlier reported.

The question for the stock market will be whether the upside of such strength outweighs the downside. That is, will a stronger economy create enough extra in corporate profits to make up for delayed or dashed hopes for quick and significant cuts to interest rates?

“The big payroll gains and wage gains aren’t something to be feared,” said Brian Jacobsen, chief economist at Annex Wealth Management. “The Fed has stepped back from its insistence that the labor market needs to weaken before inflation sustainably falls.”

He pointed to a report earlier this week that showed an increase in productivity for U.S. workers, which could help offset the effect of higher wages.

The jobs report landed on Wall Street amid a maelstrom of profit reports that could have helped move the market on their own.

Meta Platforms, the owner of Facebook and Instagram, soared 20.3% after it reported stronger profit for the latest quarter than expected and said it would start paying a dividend to its investors.

Amazon rallied 7.9% after it reported stronger profit and revenue for the latest quarter than expected.

They’re both members of a small group of Big Tech stocks known as the “Magnificent Seven” responsible for the majority of Wall Street’s run to a record. Their huge gains have set expectations very high for their growth, which they need to meet to justify the big runs for their stock prices.

Apple, another member of the Magnificent Seven, slipped 0.5% even though it reported better profit than expected.

Charter Communications slumped 16.5% for the sharpest loss in the S&P 500 after it reported weaker profit for the latest quarter than expected.

Stocks of utilities were also particularly weak, with those in the S&P 500 dropping 1.8%. Besides tending to lag the market when excitement is high about the economy, utility stocks also get hurt by high interest rates. Bonds paying high yields can pull away investors who otherwise might have been interested in utility stocks’ relatively high dividends.

All told, the S&P 500 rallied 52.42 points to 4,958.61. The Dow gained 134.58 to 38.654.42, and the Nasdaq jumped 267.31 to 15,628.95.

In markets abroad, stocks tumbled 1.5% in Shanghai to cap their worst week in five years. Worries about a faltering economic recovery and troubles for the real estate industry have made the market one of the world’s worst recently.

The International Monetary Fund forecast the Chinese economy would grow at a 4.6% pace this year and 4% in 2025, dropping from 5.2% last year.

Stocks were mixed elsewhere in Asia and Europe.

 

[bigdog]

ASX 200 expected to fall​

A tough session is expected for the Australian share market on Monday despite a strong finish on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 54 points or 0.7% lower this morning.

On Friday on Wall Street, big Tech stocks once again carried Wall Street to a record Friday, even though the majority of stocks fell amid worries about the downside of a hot economy.

Big gains for Meta Platforms and Amazon helped drive the S&P 500 index up by 1.1% to its latest all-time high. It’s in a torrid run where it’s climbed in 13 of the last 14 weeks. The Big Tech stocks, which are two of Wall Street’s most influential, also vaulted the Nasdaq composite up by 1.7%.


But the Dow Jones Industrial Average, which has less of an emphasis on tech, rose by a more modest 0.3%, or 134 points. And the Russell 2000 index of smaller stocks fell 0.6%.

All told, the S&P 500 rallied 52.42 points to 4,958.61. The Dow gained 134.58 to 38.654.42, and the Nasdaq jumped 267.31 to 15,628.95.

 

[bigdog]

Stock market today: Asian shares are mixed, with China up after state fund says it will buy stocks

Shares are mixed in Asia, where Chinese markets advanced after a government investment fund said it would step up stock purchases.

apnews.com

Wall Street slips from all-time high as cuts to rates look further off​

By STAN CHOE

NEW YORK (AP) — Stocks slipped Monday following the latest signal that the economy remains strong, which could delay the cuts to interest rates that Wall Street wants.

The S&P 500 fell 15.80 points, or 0.3%, to 4,942.81 from the all-time high set Friday. The Dow Jones Industrial Average dropped 274.30, or 0.7%, to 38,380.12, and the Nasdaq composite edged down by 31.28, or 0.2%, to 15,597.68.

Earnings season is near its midpoint, and roughly half the companies in the S&P 500 have reported their latest results, including many of the market’s most influential. Estee Lauder jumped 12% after it reported better revenue and profit than analysts expected. McDonald’s, meanwhile, fell 3.7% despite reporting stronger profit than expected. Its revenue for the latest quarter fell just short of forecasts.

Companies that have been missing analysts’ estimates for earnings this reporting season have been seeing their stocks get punished even more than usual, according to strategists at Bank of America.

Stocks broadly felt pressure from another jump for yields in the bond market. They rose as traders on Wall Street delayed their expectations for when the Federal Reserve will begin cutting its main interest rate.

The Fed has yanked the federal funds rate to its highest level since 2001 to bring down high inflation. High rates intentionally slow the economy by making borrowing more expensive and hurting investment prices.

Federal Reserve Chair Jerome Powell said again in an interview broadcast Sunday that the Fed may cut interest rates three times this year because inflation has been cooling. But he also indicated again in the interview on “60 Minutes” that the Fed is unlikely to begin in March, as many traders had earlier hoped.

Following the interview, traders pushed out some bets for the cuts to begin in June instead of May, according to data from CME Group.

At Goldman Sachs, economist David Mericle is still forecasting cuts to begin in May. Following Sunday’s interview, though, he sees a greater chance of rate cuts beginning later than that and happening in a steeper fashion.

The yield on the 10-year Treasury climbed to 4.16% from 4.09% late Friday and from less than 3.80% late last year.

The jump accelerated after a report showed U.S. services industries are growing more strongly than economists expected, led by health care and social assistance. Services businesses said they’re optimistic about the economy, though they’re still cautious because of inflation and other challenges, according to the Institute for Supply Management

Such signals of a solid economy could give the Fed more reason to pause before cutting rates, because they could keep upward pressure on inflation. That hurts the stock market because interest rates are one of the main levers that set stock prices, with lower rates helping.

But there’s also an upside for stocks from the U.S. economy’s blasting through worries about a possible recession. The economic strength should drive growth in profits for companies, which are the other lever that dictates where stock prices go over the long term.

Monday’s update on services industries followed a report from Friday showing U.S. employers hired many more workers last month than economists expected.

Even confidence among U.S. consumers has perked up recently. It’s a turnaround from frustration about high inflation that kept sentiment mired at a low level. Such gloominess raised the threat of a “vibecession.”

“It’s not clear what’s going to disrupt the ‘vibespansion,’” that’s taken its place, “barring a risk event such as the escalation of fighting in the Middle East into a regional war,” said Jason Draho, head of asset allocation Americas at UBS Global Wealth Management.

Caterpillar, which is seen as a bellwether of global economic strength, rose 2% after its profit for the latest quarter topped forecasts.

Elsewhere on Wall Street, Air Products and Chemicals slumped 15.6% after it reported profit and revenue that fell short of analysts’ expectations.

Boeing fell 1.3% after the discovery of another problem in some of its 737 fuselages that may delay deliveries of about 50 aircraft. It and McDonald’s were two of the biggest reasons the Dow Jones Industrial Average lagged the market.

In stock markets abroad, Chinese indexes swung sharply following Beijing’s latest pledge to shore up its financial markets.

Stocks sank 1% in Shanghai after coming off their worst week in five years. Chinese stocks have struggled on worries about a troubled real-estate industry and a disappointing overall economic recovery.

Stocks also fell nearly 1% in South Korea, but index movements were more modest across the rest of Asia and Europe.

ASX 200 expected to fall again​

The Australian share market is expected to fall again on Tuesday following a poor start to the week on Wall Street.

According to the latest SPI futures, the ASX 200 is poised to open the day 33 points or 0.4% lower.

Stocks slipped Monday following the latest signal that the economy remains strong, which could delay the cuts to interest rates that Wall Street wants.

The S&P 500 fell 15.80 points, or 0.3%, to 4,942.81 from the all-time high set Friday.

The Dow Jones Industrial Average dropped 274.30, or 0.7%, to 38,380.12, and the Nasdaq composite edged down by 31.28, or 0.2%, to 15,597.68.

 

[bigdog]

Stock market today: Wall Street ticks higher as the bond market calms

Most of Wall Street ticked higher as the bond market calmed down following some sharp swings.

www.detroitnews.com

Stock market today: Wall Street ticks higher as the bond market calms​

Stan Choe

New York — Wall Street drifted higher through a quiet Tuesday as the bond market calmed down following some sharp swings.

The S&P 500 rose 11.42 points, or 0.2%, to 4,954.23 and nearly returned to its all-time high set at the end of last week.

The Dow Jones Industrial Average gained 141.24, or 0.4%, to 38,521.36, and the Nasdaq composite edged up by 11.32, or 0.1%, to 15,609.00.

Stocks have been under some pressure recently as hints keep coming that the Federal Reserve likely won’t deliver cuts to interest rates as soon as traders had hoped. The economy has remained remarkably solid, even though the Fed has jacked up rates to slow it and inflation down. That has pushed some forecasts for the first easing of rates from March into the summer.

If easier interest rates in the short term won’t boost stock prices, the hope is that strong profits by companies will.

GE Healthcare Technologies was the day's best performer in the S&P 500 and jumped 11.6% after reporting healthier profit and revenue for the latest quarter than analysts expected.

Palantir Technologies, one of the companies that’s been riding a frenzy on Wall Street around artificial intelligence technology, soared 30.8% after its results for the latest quarter roughly matched analysts’ expectations. The data analytics company brought in slightly more revenue than analysts expected, and its CEO said it's seeing surging demand across industries for AI platforms.

Streaming music and podcast platform Spotify climbed 3.9% after it reported stronger-than-expected growth in its subscriber base, even as revenue missed analysts' targets.

Those gains helped to offset an 11.5% tumble for FMC, whose products help protect crops. The company’s profit and revenue fell short of analysts’ projections, in part because of drought conditions in Brazil.

Fiserv was another laggard. The payments and financial technology company fell 2.1% after its revenue for the latest quarter fell just short of analysts' expectations. Its profit nevertheless topped forecasts.

With earnings season at about the midway point for the big companies in the S&P 500 index, there are still plenty of heavyweights reporting this week including CVS Health, The Walt Disney Co. and PepsiCo.

In the bond market, the yield on the 10-year Treasury relaxed following its slingshot ride higher in recent days. It eased to 4.09% from 4.17% late Monday.

Strong reports on the job market, services industries and other areas of the U.S. economy have pushed yields much higher, up from 3.88% less than a week ago. Traders are now betting on less than a 20% probability that the Federal Reserve will begin lowering rates in March, down from 68% a month ago, according to data from CME Group.

While a delay in rate cuts hurts the stock market, particularly after very high expectations for cuts helped drive a lengthy rally, the strong economic data also carry an upside for investors. They should mean stronger profits for companies.

Consider Wall Street's reaction to Friday's report that showed employers hired many more workers last month than expected. Investments tied to the S&P 500 initially fell after the release of the blowout data, but the index climbed through the day to set another all-time high.

That may indicate the market “is warming up to the idea that ‘good is, in fact, good,’” when it comes to data on the economy "and perhaps less reliant on rate cuts," according to UBS strategists led by Maxwell Grinacoff. But they acknowledge that stocks seen as lower quality are not seeing as big a benefit.

In stock markets abroad, Chinese indexes soared following the latest measures announced to help prop up what have been some of the world’s worst-performing markets. Investors are hoping for even more action from the government.

Stocks leaped 4% in Hong Kong and 3.2% in Shanghai, though both markets are still down by more than 5% for the young year so far. Worries about a weak economic recovery and troubles in the real-estate industry have dragged on Chinese stocks.

Stocks were mixed and moved more modestly elsewhere in Asia and in Europe.

In London, the FTSE 100 rose 0.9% after shares of energy giant BP jumped following its latest earnings report.

ASX 200 expected to rebound​

The Australian share market looks set for a better day on Wednesday despite a mixed night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 55 points or 0.7% higher
Wall Street drifted higher through a quiet Tuesday as the bond market calmed down following some sharp swings.

The S&P 500 rose 11.42 points, or 0.2%, to 4,954.23 and nearly returned to its all-time high set at the end of last week.

The Dow Jones Industrial Average gained 141.24, or 0.4%, to 38,521.36, and the Nasdaq composite edged up by 11.32, or 0.1%, to 15,609.00.

 

[bigdog]

Stock market today: Asian shares are mostly higher as S&P 500 nears the 5,000 level for the 1st time

Share are mostly higher in Asia after the S&P 500 neared the 5,000 level for the first time. Hong Kong's benchmark fell while Shanghai advanced after China replaced its top stock market regulator.

apnews.com

Wall Street climbs to the edge of another milestone as S&P 500 nears 5,000​

By STAN CHOE

NEW YORK (AP) — Wall Street rose to the edge of another record-breaking milestone Wednesday as Ford Motor, Chipotle Mexican Grill and other big stocks climbed following their latest earnings reports.

The S&P 500 got within a fraction of a point of the 5,000 level before ending the day at 4,995.06. The index rose 40.83 points, or 0.8%, to set another all-time closing high.

The Dow Jones Industrial Average added 156.00 points, or 0.4%, to 38,677.36, and the Nasdaq composite gained 147.65, or 0.9%, to 15,756.64.

A relatively calm day in the bond market helped keep things smooth for the stock market, despite some concerns about investors’ ability to digest a $42 billion auction of 10-year Treasurys by the U.S. government.

Underneath the surface, though, were still some very sharp moves. New York Community Bancorp went from an initial gain to a steep loss of 14% and back to a gain of 6.7%. It’s the latest dizzying swing for the bank, which is still down by more than half since rattling investors across the industry last week with a surprise loss.

The bank is struggling with challenges related to its acquisition of Signature Bank, which was one of the banks that collapsed in last year’s mini-crisis for the industry. But New York Community Bancorp is also feeling pain from a problem dogging all kinds of banks worldwide: weakness in commercial real estate.

Moody’s downgraded the bank’s credit rating to “junk” status from the lowest tier of investment-grade. Analysts also said they were concerned about the recent departures of key risk and audit executives. In response, the bank said it had increased its deposits and gave details about how much cash it has on hand.

Stocks of other regional banks have been caught up in the drama, to a lesser degree, which has brought back uncomfortable memories of last year’s banking crisis. The KBW Nasdaq Regional Banking index swung between losses and gains through the day before ending 0.1% lower.

UBS analyst Brody Preston said New York Community Bancorp’s latest quarterly loss and dividend cut are due to problems related specifically to it and “are not necessarily a proverbial canary in the coal mine for other banks in the space.”

But attention is likely to remain on potential bank losses tied to commercial real estate, particularly after Treasury Secretary Janet Yellen highlighted them as a concern recently.

Elsewhere on Wall Street, Chipotle Mexican Grill rose 7.2% after reporting stronger profit and revenue for the latest quarter than analysts expected. Its restaurants sold more meals to customers than they did a year earlier.

CVS Health gained 3.1% after it likewise topped expectations for both profit and revenue in the final three months of 2023. The drugstore chain and pharmacy benefits manager, though, also trimmed its forecast for full-year results.

Ford Motor climbed 6% following its better-than-expected results, while Enphase Energy soared 16.9% despite falling just shy of forecasts. Investors are hopeful that weakness in demand for the supplier of solar and battery systems is nearing a bottom.

They helped offset a 9.7% drop for VF Corp., the company behind Vans, The North Face and other brands. It reported weaker results than analysts expected.

Snap tumbled 34.6% after its fourth-quarter revenue fell short of analysts’ expectations. The company behind Snapchat also gave a tepid forecast for 2024 after saying on Monday that it was laying off 10% of its workforce.

Wall Street was also trying to game out the impacts from an announcement that ESPN, Fox and Warner Bros. Discovery are planning to launch a streaming platform for sports. Many details are still to be worked out, as is how the deal will impact prices for broadcasting rights with sports leagues. But fuboTV, a streaming service that offers sports, fell 22.7%.

In the bond market, Treasury yields held relatively steady. The yield on the 10-year Treasury edged up to 4.11% from 4.09% late Tuesday following its latest auction. Bonds have been on a jagged run recently as signals of a remarkably resilient economy force traders to push back forecasts for when the Federal Reserve may cut interest rates.

While a delay in rate cuts hurts the stock market, strong economic data also carry an upside for investors. They should mean stronger profits for companies. Such hopes have helped stocks build on their breakneck rally, which began in October, supplanting earlier hopes that a cooldown in inflation could mean imminent cuts to rates.

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

Stocks rose 1.4% in Shanghai but slipped 0.3% in Hong Kong following moves this week by authorities to prop up what have been some of the world’s worst-performing markets this year.


ASX 200 expected to open flat

The Australian share market looks set for a flat session on Thursday despite Wall Street rising to the edge of another record-breaking milestone Wednesday

According to the latest SPI futures, the ASX 200 is expected to open the day 3 points higher this morning.

Wall Street rose to the edge of another record-breaking milestone Wednesday as Ford Motor, Chipotle Mexican Grill and other big stocks climbed following their latest earnings reports.

The S&P 500 got within a fraction of a point of the 5,000 level before ending the day at 4,995.06. The index rose 40.83 points, or 0.8%, to set another all-time closing high.

The Dow Jones Industrial Average added 156.00 points, or 0.4%, to 38,677.36, and the Nasdaq composite gained 147.65, or 0.9%, to 15,756.64.

 

[bigdog]

Stock market today: Tokyo hits 30-year high, with many Asian markets shut for Lunar New Year holiday

Asian shares are mostly higher as Tokyo's benchmark momentarily touched a 34-year high, while many regional markets were closed for the Lunar New Year holiday.

apnews.com

Wall Street edges up to set more records, as S&P 500 briefly tops 5,000​

By STAN CHOE

NEW YORK (AP) — U.S. stocks ticked higher Thursday to set more records as further evidence piled up to show the job market remains remarkably solid.

The S&P 500 inched up by 2.85 points, or 0.1%, to 4,997.91. The Dow Jones Industrial Average also set an all-time high after edging up by 48.97, or 0.1%, to 38,726.33. The Nasdaq composite gained 37.07, or 0.2%, to 15,793.71.

During the day, the S&P 500 briefly topped the 5,000 level for the first time. Such milestones don’t mean much in a market that’s supposed to be dictated by math and dollars and cents. But it can offer a psychological boost for a market that can often move on emotion as well.

“It is a great reminder of how far we’ve come, and it wasn’t that long ago that everyone on TV was telling us about a near certain bear market and recession,” said Ryan Detrick, chief market strategist at Carson Group.

The U.S. economy has blown past earlier expectations for a recession, and the latest show of strength came from a report indicating fewer workers applied for unemployment benefits last week than expected. The number remains low relative to history, even if layoffs at Google’s parent company, Macy’s and other big-name companies have been getting attention recently.

In prior months, such a report may have hurt the stock market because of concerns that it would mean a longer wait for cuts to interest rates from the Federal Reserve. But investors have been coming around to the idea that good news on the economy is good for stocks because it will drive profits for companies.

The latest set of earnings reports from big U.S. companies also kept the stock market mixed overall.

The Walt Disney Co. jumped 11.5% after it reported stronger profit for the latest quarter than analysts expected. It benefited from cost cuts and growth at its theme parks.

Ralph Lauren was another winner, rising 16.8% after its profit and revenue topped Wall Street’s forecasts. It said it saw strong holiday sales around the world, led by Asia.

U.S.-listed shares of Arm Holdings, a U.K.-based semiconductor company, soared 47.9% after it also topped analysts’ expectations.

Helping to offset those gains was PayPal, which slumped 11.2% even though it reported stronger profit than expected. It gave a forecast for expected profit across 2024 that fell short of analysts’.

S&P Global was also one of the heavier weights on the S&P 500 and fell 5% after reporting weaker profit for the latest quarter than analysts expected.

New York Community Bancorp had another sharp zigzag day and went from an early loss of nearly 10% to a gain and back to a loss of 6.5%. Its stock has dropped nearly 60% since it shocked investors across the banking industry with a surprise loss last week, and Moody’s cut its credit-rating to “junk” status earlier this week.

Analysts have said its problems are specific to it, particularly as it absorbs the purchase of much of Signature Bank, which was one of the banks that fell in last year’s mini-crisis for the industry. But worries remain high about a problem that’s affecting banks worldwide: weakness in commercial real estate.

Stocks of other regional banks have also swung sharply lately, reanimating uncomfortable memories of last year’s banking crisis. The KBW Nasdaq Regional Banking index flipped between gains and losses through the day before finishing 0.3% higher.

In the bond market, the yield on the 10-year Treasury rose to 4.14% from 4.12% late Wednesday.

Traders have taken heed of warnings from the Federal Reserve that its first cut to rates following years of rapid hikes won’t come soon, which has pushed the yield up this month.

Traders still expect rate cuts to come, just later in the year than they were hoping before. The Fed has said it doesn’t want to overdo high rates, which would create unnecessary pain for the economy. Traders are largely betting on the first cut coming in either May or June, after earlier hoping for March, according to data from CME Group.

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

Stocks climbed 1.3% in Shanghai after China replaced its top stock market regulator late Wednesday with an industry veteran nicknamed the “broker butcher,” analysts say, due to his record for cracking down on market abuses such as insider trading. Stocks fell 1.3% in Hong Kong, though.

Beijing has been struggling to prop up what have been some of the world’s worst-performing markets this year.

ASX 200 expected to edge lower​

The Australian share market looks set to end the week in a subdued fashion following a small increases on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open with NO change this morning.

U.S. stocks ticked higher Thursday to set more records as further evidence piled up to show the job market remains remarkably solid.

The S&P 500 inched up by 2.85 points, or 0.1%, to 4,997.91. The Dow Jones Industrial Average also set an all-time high after edging up by 48.97, or 0.1%, to 38,726.33. The Nasdaq composite gained 37.07, or 0.2%, to 15,793.71.

 

[bigdog]

Stock market today: Wall Street waltzes past its latest milestone as S&P 500 closes above 5,000

Wall Street set its latest record after the S&P 500 rose 0.6% to close above the 5,000 level for the first time.

apnews.com

Wall Street waltzes past its latest milestone as S&P 500 closes above 5,000​

By STAN CHOE

NEW YORK (AP) — More gains for U.S. stocks on Friday sent Wall Street to its latest record, milestone and winning week.

The S&P 500 rose 0.6% and finished a day above the 5,000 level for the first time. It’s the 10th record in less than a month for the index, which closed its 14th winning week in the last 15 to continue a romp that began around Halloween.

The Nasdaq composite jumped 1.2% to pull within 0.4% of its own all-time high, which was set in 2021. The Dow Jones Industrial Average was a laggard a day after setting its own latest record. It slipped 54 points, or 0.1%.

Milestones like the S&P 500 at 5,000 don’t carry much weight for a market that’s supposed to move on hard numbers like interest rates, profits and revenue. But they can juice up the animal spirits of a market that can also be prone to emotional moves.

Wall Street’s rally got going with hopes that cooling inflation would get the Federal Reserve to dial down the pressure by cutting interest rates. Lately, such cuts look to be coming later than hoped because reports keep showing a remarkably solid economy. But that strength has in turn raised expectations for profits from companies, supporting stocks.

Cloudflare was the latest company to soar after reporting stronger profit than analysts expected for its latest quarter. The cloud-services company jumped 19.5% after it said it signed both its largest new customer and its largest renewal ever, despite an overall economic environment that “remains challenging to predict.”

Big Tech stocks did most of the market’s heavy lifting, as they’ve been doing for more than a year, in part on mania around artificial-intelligence technology. Nvidia, Microsoft and Amazon were the three strongest forces lifting the S&P 500 after each rose by at least 1.6%.

They helped offset a 3.6% drop for PepsiCo, which reported weaker revenue for the latest quarter than analysts expected. It said growth is slowing because customers are getting back to their snacking and other behaviors from before the pandemic.

Expedia tumbled 17.8% despite also reporting stronger profit than expected. The company gave forecasts for the first three months of 2024 that analysts said pointed to slower growth in bookings. The company also announced a new CEO, Ariane Gorin, will take over in May.

Take-Two Interactive, the publisher of “Grand Theft Auto” and other video games, sank 8.7% after it reported weaker profit than expected. It also cut its forecast for results for its fiscal year, which ends at the close of March.

All told, the S&P 500 rose 28.70 points to 5,026.61. The Dow slipped 54.64 to 38,671.69, and the Nasdaq gained 196.95 to 15,990.66.

Profits have largely been coming in better than expected for the big companies in the S&P 500 this reporting season, which is roughly two-thirds finished. That’s usually the case, but even more companies than usual are doing so this time around, according to FactSet.

That has helped optimism rise on Wall Street, but contrarians say it may have gone too far and carried stocks to too-expensive heights.

Traders are flowing into some riskier investments at a quick enough pace that a contrarian measure kept by Bank of America is leaning more toward “sell” now than “buy,” though it’s not at convincing levels. The measure tracks how much fear and greed are in the market, and it suggested buying in October when fear was at a convincing high.

In the bond market, Treasury yields inched higher. The yield on the 10-year Treasury rose to 4.16% from 4.15% late Thursday.

But the movements were much calmer than earlier in the month, when the 10-year yield leaped up from 3.85% as traders forcefully pushed out their forecasts for rate cuts.

It’s an encouraging signal that the stock market can keep hitting highs when expectations are dimming for an imminent cut to interest rates, particularly after the market earlier seemed to be moving solely on such forecasts.

“A less emotional market is a positive sign, though investors must fight against the complacency that is a natural reaction to such a strong and steady bull run,” said Mark Hackett, Nationwide’s chief of investment research.

In stock markets abroad, indexes were mostly modestly lower. In Asia, several markets were shut for the Lunar New Year holiday.

Tokyo’s Nikkei 225 edged up by 0.1% after touching a 34-year high earlier in the day.

 

[bigdog]

ASX 200 expected to open flat​

The Australian share market looks set for a subdued start to the week despite a reasonably positive finish on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day flat.

More gains for U.S. stocks on Friday sent Wall Street to its latest record, milestone and winning week.

The S&P 500 rose 0.6% and finished a day above the 5,000 level for the first time. It’s the 10th record in less than a month for the index, which closed its 14th winning week in the last 15 to continue a romp that began around Halloween.

The Nasdaq composite jumped 1.2% to pull within 0.4% of its own all-time high, which was set in 2021. The Dow Jones Industrial Average was a laggard a day after setting its own latest record. It slipped 54 points, or 0.1%.

 

[bigdog]

Stock market today: Asian shares rise ahead of US inflation report, China closed for holiday

Asian shares are mostly rising in morning trading, as investors watched for the latest indicators on inflation.

apnews.com

Wall Street hangs near records ahead of inflation report​

By STAN CHOE

NEW YORK (AP) — Wall Street held steady around record high levels following its latest weekly gain. The S&P 500 slipped 0.1%, weighed down by losses in tech stocks including Microsoft and Apple. The Nasdaq composite lost 0.3% after flirting with its all-time closing high earlier in the day. The Dow Jones Industrial Average added 0.3%, surpassing the record high it set set last week. Diamondback Energy rose sharply after saying it would buy Endeavor Energy Resources. The next big event for the market could be Tuesday’s update on U.S. inflation, which economists expect to show a drop back below 3%. Treasury yields were stable.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

NEW YORK (AP) — Wall Street is holding relatively steady Monday following its latest record-setting week.

The S&P 500 was 0.1% lower in late trading after closing Friday above the 5,000 level for the first time. The Nasdaq composite was down 0.3%. Earlier in the day, it was hovering just above its all-time closing high set in 2021.

The Dow Jones Industrial Average was up 112 points, or 0.3%, with less than an hour remaining in trading, and and on track to surpass its own record set last week.

Conditions are calm across markets, with yields also moving relatively little in the bond market. The next big event for the market could be Tuesday’s update on inflation across the United States, which economists expect to show a drop back below the 3% level.


In the meantime, Diamondback Energy climbed 9.2% after it said it would buy Endeavor Energy Resources in a deal valued at roughly $26 billion, including Endeavor’s debt. Diamondback is using both cash and stock to pay for the purchase of the privately held exploration and production company.

Trimble rose 4.7% after the technology provider reported stronger profit and revenue for the latest quarter than analysts expected. The company, whose products are used in the construction, mapping and other industries, shook off an earlier loss after it also gave a forecast for revenue over 2024 that fell short of Wall Street’s estimates.

Big companies in the S&P 500 have mostly been reporting better results than expected for the final three months of 2023. More than two thirds of the companies in the index have already reported their results, but several big names are still to come this upcoming week. They include Coca-Cola on Tuesday, Kraft Heinz on Wednesday and Southern Co. on Thursday.

The smallest companies in the market, meanwhile, are still in the relatively early days of their profit reporting season. But they’ve been beating analysts’ expectations by even more than their big rivals, according to Bank of America strategists.

Worries have grown about how top-heavy the stock market has become, where the seven biggest companies have accounted for a disproportionate amount of the S&P 500’s rally to a record. If more companies aside from the group known as the “Magnificent Seven” can deliver strong profit growth, it could soften the criticism that the market has become too expensive.

Another worry for the market has been uncertainty about just how much danger lurks for the economy in the loans and other holdings banks have on their balance sheets that are tied to commercial real estate.

The widespread expectation, even among top U.S. government officials, is that weakness for office buildings and other commercial projects will mean at least some pain for banks. But no one can say how much for sure.

That’s why so much focus has been on New York Community Bancorp recently. It shocked investors roughly two weeks ago when it announced a surprise loss for its latest quarter. Some of the pain was due to its acquisition of Signature Bank during the industry’s mini-crisis last year. But worries about commercial real estate also played a role.

New York Community Bancorp’s stock has roughly halved since that surprise report, but it was doing better on Monday. It rose 1.3%.

An index measuring stock prices across the regional banking industry was also higher, up 2.9%.

In the bond market, yields were moving very little. The yield on the 10-year Treasury slipped to 4.16% from 4.18%, late Friday.

The two-year Treasury yield, which more closely tracks expectations for the Federal Reserve, dipped to 4.47% from 4.48% late Friday.

Inflation has been cooling enough that the Federal Reserve has hinted it may cut its main interest rate several times this year. Such cuts typically juice financial markets and the economy, and they would release pressure that’s built up since the Fed has taken its main interest rate to the highest level since 2001.

After earlier hoping cuts to rates could begin as soon as March, traders have since pushed their forecasts out to May or June. Reports showing the U.S. economy and job market remain remarkably solid, along with some comments from Fed officials, have been forcing the delays.

If the Fed ends up making traders wait even longer than expected for rate cuts, it could upset stock prices that have already shot upward on the assumption of lots of good news, according to Marc Dizard, chief investment strategist at PNC Asset Management Group. Besides lower interest rates, that also includes stronger convictions for no recession for the U.S. economy, inflation continuing to come down and corporate profits growing more strongly.

“There isn’t a whole lot more than can really go right,” he said.

In stock markets abroad, indexes were modestly higher in much of Europe. In Asia, several markets were closed for holidays.

ASX 200 expected to open higher​

The Australian share market looks set for a subdued start to the week despite a reasonably positive finish on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open 20 points higher

Wall Street held steady around record high levels following its latest weekly gain. The S&P 500 slipped 0.1%, weighed down by losses in tech stocks including Microsoft and Apple. The Nasdaq composite lost 0.3% after flirting with its all-time closing high earlier in the day. The Dow Jones Industrial Average added 0.3%, surpassing the record high it set set last week. Diamondback Energy rose sharply after saying it would buy Endeavor Energy Resources. The next big event for the market could be Tuesday’s update on U.S. inflation, which economists expect to show a drop back below 3%. Treasury yields were stable.on Wall Street, the Dow Jones was down 0.15%, but the S&P 500 rose 0.6% and the Nasdaq jumped 1.25%.

 

[bigdog]

Stock market today: Asian shares drop after disappointing US inflation data sends Dow down

Asian shares have declined after disappointingly high U.S. inflation data sent shares sliding on Wall Street, raising prospects that interest rates will remain elevated for longer.

apnews.com

Wall Street falls sharply after disappointing inflation data, with Dow down 500​

By STAN CHOE

NEW YORK (AP) — U.S. stocks fell sharply Tuesday after disappointing inflation data made investors confront the bitter possibility that interest rates will stay high for months longer than they were hoping.

The S&P 500 tumbled 1.4% as traders delayed forecasts for when the Federal Reserve will deliver the cuts to interest rates they crave so much. The hotter-than-expected inflation report may have put the final nail into hopes that the first cut could arrive in March. It also pushed many forecasts past May into June, according to data from CME Group.

The Dow Jones Industrial Average dropped 524 points, or 1.4%, from its record set a day earlier. The Nasdaq composite, which has been flirting with its all-time high set in 2021, sank 1.8%.

High interest rates hurt all kinds of investments, and they tend to particularly hurt high-growth stocks like technology companies. A 2.2% drop for Microsoft and 2.1% tumble for Amazon were the two heaviest weights on the market.

The losses were widespread, and nearly 90% of the stocks in the S&P 500 fell in the wipeout. It’s one of the biggest speed bumps for the index since its big, record-setting rally began in late October. Much of that rise was due to hopes that inflation was cooling enough for the Fed to cut rates and relax the pressure on the economy.

Stocks of smaller companies fell even more because high rates could hurt them more than bigger rivals by making it more difficult to borrow cash. The Russell 2000 index of smaller stocks plunged 4% for its worst day since two summers ago.

Some analysts warned the inflation data could mean not only a delay to rate cuts but also the possibility for further increases. The Fed has already pulled its main interest rate to the highest level since 2001 in hopes of grinding down high inflation. High rates work by slowing the overall economy.

But it’s still just one data point, which followed months of encouraging trends where inflationary pressures eased, said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.

“Until proven otherwise, the longer-term cooling inflation trend is still in place,” he said. “The Fed had already made clear that rate cuts weren’t going to happen as soon as many people wanted them to. Today was simply a reminder of why they were inclined to wait.”

Still, the reaction across Wall Street was immediate and fierce.

Yields jumped in the bond market as traders built up expectations for the Fed to keep rates high for longer. The yield on the 10-year Treasury rose to 4.31% from 4.18% late Tuesday.

The two-year Treasury yield, which moves more on expectations for the Fed, leaped to 4.66% from 4.47%.

Even after the surprising inflation report, the likeliest outcome is still for the economy to manage a perfect landing and avoid a painful recession as inflation cools, according to Alexandra Wilson-Elizondo, co-chief investment officer of the multi-asset solutions business in Goldman Sachs Asset Management.

But she said there is still risk that conditions could swing to one of two extremes: Either the economy falls into a recession under the weight of high interest rates, or inflation reaccelerates in part because of how much Treasury yields have already fallen and stock prices have already climbed on expectations for coming cuts to rates.

The forced recalibration by traders on rates brought Wall Street’s expectations closer to what the Federal Reserve has outlined. Fed officials earlier said they were penciling in three cuts to rates this year, as inflation hopefully cools toward their 2% target from its peak above 9% two summers ago.

Earlier, traders were forecasting as many as six cuts in 2024. Now, they’re largely betting on three or four cuts.

Critics have been warning that stock prices may have climbed too far, too fast given too-optimistic hopes for rate cuts and other risks. On the upside for markets recently, most companies have been beating analysts’ forecasts for profits in the latest quarter.

Arista Networks joined that parade after reporting stronger earnings and revenue than expected. But its stock nevertheless sank 5.5%. Underscoring again the power of high expectations, analysts said its stock may have fallen because investors were hoping for a better forecast for upcoming results from the company. Coming into the day, its stock had already risen nearly 20% for the year so far.

Moody’s tumbled 7.9% for the worst loss in the S&P 500 after the credit-rating company reported weaker profit for the latest quarter than Wall Street had forecast.

On the winning side of Wall Street, JetBlue Airways soared 21.6% after activist investor Carl Icahn disclosed he has built up an ownership stake in the airline and said he sees the stock as undervalued.

All told, the S&P 500 fell 68.67 points to 4,953.17. The Dow dropped 524.63 to 38,272.75, and the Nasdaq sank 286.95 to 15,655.60.

In stock markets abroad, indexes fell across Europe. In Asia, markets were closed in China for holidays, but Japan’s Nikkei 225 jumped 2.9% and South Korea’s Kospi gained 1.1%.

ASX 200 expected to sink​

The Australian share market looks set for a very red day on Wednesday after a hotter than expected inflation reading in the US spooked investors.

According to the latest SPI futures, the ASX 200 is expected to open the day 90 points or 1.2% lower.

U.S. stocks fell sharply Tuesday after disappointing inflation data made investors confront the bitter possibility that interest rates will stay high for months longer than they were hoping.

The S&P 500 tumbled 1.4% as traders delayed forecasts for when the Federal Reserve will deliver the cuts to interest rates they crave so much. The hotter-than-expected inflation report may have put the final nail into hopes that the first cut could arrive in March. It also pushed many forecasts past May into June, according to data from CME Group.

The Dow Jones Industrial Average dropped 524 points, or 1.4%, from its record set a day earlier. The Nasdaq composite, which has been flirting with its all-time high set in 2021, sank 1.8%.

All told, the S&P 500 fell 68.67 points to 4,953.17. The Dow dropped 524.63 to 38,272.75, and the Nasdaq sank 286.95 to 15,655.60.



Prices current around 7:20am AEDT.

 

[bigdog]

Stock market today: Asian shares track Wall Street's rebound

On Wednesday, the S&P 500 climbed 1% to 5,000.62, clawing back more than two-thirds of its loss from Tuesday. A hotter-than-expected report on inflation forced investors to push back forecasts for when the Federal Reserve may begin cutting interest rates, potentially into the summer. The...

finance.yahoo.com

Wall Street recovers much of its big loss from a day before​

STAN CHOE

NEW YORK (AP) — U.S. stocks rose on Wednesday to recover much of their sharp losses from a day before, triggered by worries that high interest rates may stick around for months longer than hoped.

The S&P 500 climbed 47.45 points, or 1%, to 5,000.62 and clawed back more than two-thirds of its loss from Tuesday. A hotter-than-expected report on inflation forced investors to delay forecasts for when the Federal Reserve may begin cutting interest rates, potentially into the summer. Expectations for such cuts are a big reason stocks rallied to records recently.

The Dow Jones Industrial Average gained 151.52 points, or 0.4%, to 38,424.27 a day after after dropping 524 points for its worst loss in nearly 11 months. The Nasdaq composite jumped 203.55, or 1.3%, to 15,859.15.

The smallest stocks, which took the hardest hit from worries about higher interest rates on Tuesday, bounced back more than the rest of the market. The Russell 2000 index leaped 2.4%.

Helping to keep things steadier on Wall Street was a calmer bond market. Treasury yields eased after shooting upward a day earlier on expectations the Fed would keep rates high for longer. The central bank has already jacked its main interest rate to the highest level since 2001 in hopes of slowing the overall economy just enough to grind high inflation down to its target.

The yield on the 10-year Treasury fell to 4.25% from 4.32% late Tuesday. It’s still well above its 3.85% level at the start of this month.

Critics have been arguing that stock prices may have run too far, too fast in their rally since October. A pullback could be healthy if it take some of the “froth” out of the market, according to JJ Kinahan, CEO of IG North America.

Kinahan said he found it interesting that big recent winners like Nvidia and other chipmakers finished Tuesday well off their lows for the day. That makes him think the day’s drop “was more about taking some profits than it was panic selling” by investors.

Nvidia, which has been riding a mania around artificial-intelligence technology, rose 2.5% Wednesday and was the single strongest force pushing up the S&P 500 index.

DaVita jumped 8.6% for one of the S&P 500’s larger gains after the health care company reported stronger profit and revenue for the latest quarter than analysts expected.

Most companies in the S&P 500 have been topping analysts’ forecasts for the last three months of 2023. Hopes for stronger growth in 2024 from a solid economy have been another reason the S&P 500 has set 10 records already this year.

Lyft shares leaped 35.1% after a wild ride in off-hours trading driven in part by a typo in its latest earnings report. The ride-hailing company reported stronger results than analysts expected, but its press release also said it expects a key measure of profitability to improve by 500 basis points, or 5 percentage points. Later, it said that should have been 50 basis points, or 0.5 percentage points.

Lyft’s stock rocketed by more than 60% in after-hours trading Tuesday following the typo.

Rival Uber Technologies rose 14.7% after its board authorized a program to buy back up to $7 billion of its stock. Investors tend to like such programs because they send cash directly to shareholders and can boost per-share profits.

Robinhood Markets gained 13% after it reported a profit for the latest quarter, when analysts were expecting a loss. The stock and crypto trading platform also said its total net revenue rose 24%, more than analysts expected.

On the losing end, Akamai Technologies dropped 8.2% after it reported mixed results. Its profit for the latest quarter topped analysts’ forecasts, but its revenue fell short.

Online vacation rental booker Airbnb slipped 1.7% after it reported losing $349 million in the fourth quarter due to an income tax settlement with Italy. Analysts had been expecting a profit.

The company forecast first-quarter revenue that would meet or beat Wall Street expectations, however, Airbnb said the pace of bookings growth is likely to “moderate” from the fourth quarter into the first.

In stock markets abroad, London’s FTSE 100 rose 0.7% following a better-than-expected report on inflation in the United Kingdom.

Hong Kong’s Hang Seng index gained 0.8% after trading reopened there, but markets remained closed in mainland China for the Lunar New Year holiday. Stocks fell elsewhere in Asia, with Japan’s Nikkei 225 down 0.7% and South Korea’s Kospi down 1.1%.


ASX 200 expected to rebound

The Australian share market looks set to rebound on Thursday following a solid night of trade on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 52 points or 08% higher this morning.
U.S. stocks rose on Wednesday to recover much of their sharp losses from a day before, triggered by worries that high interest rates may stick around for months longer than hoped.

The S&P 500 climbed 47.45 points, or 1%, to 5,000.62 and clawed back more than two-thirds of its loss from Tuesday. A hotter-than-expected report on inflation forced investors to delay forecasts for when the Federal Reserve may begin cutting interest rates, potentially into the summer. Expectations for such cuts are a big reason stocks rallied to records recently.

The Dow Jones Industrial Average gained 151.52 points, or 0.4%, to 38,424.27 a day after after dropping 524 points for its worst loss in nearly 11 months. The Nasdaq composite jumped 203.55, or 1.3%, to 15,859.15.

​

 

[bigdog]

Stock market today: Asian shares track Wall Street rally as Japan's Nikkei nears a record high

Shares in Asia are higher, with Japan's benchmark Nikkei 225 index approaching a record high. U.S. futures were lower after stocks on Wall Street set another record following some mixed reports on the economy.

apnews.com

Wall Street returns to record heights as Treasury yields ease​

By STAN CHOE
Updated 8:21 AM GMT+11, February 16, 2024

NEW YORK (AP) — U.S. stocks returned to record heights Thursday following some mixed reports on the economy.

The S&P 500 rose 29.11 points, or 0.6%, to 5,029.73 and squeaked by its prior all-time high set last week. The Dow Jones Industrial Average gained 348.85, or 0.9%, to 38,773.12, and the Nasdaq composite climbed 47.03, or 0.3%, to 15,906.17.

TripAdvisor gained 9.2% after reporting stronger results for the latest quarter than analysts expected. Tech giant Cisco Systems also reported better-than-anticipated results, but its stock sank 2.4% after it cut its profit forecast for its full fiscal year.
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The mixed set of data on the economy included a report showing sales at U.S. retailers weakened by more in January from December than expected. It was a striking drop in spending by U.S. households, whose strength has helped keep the economy out of a recession, even with high interest rates. The upside for financial markets is that it could also remove some upward pressure on inflation.

A separate report said fewer U.S. workers applied for unemployment benefits last week than expected, the latest signal of a solid job market despite high-profile announcements of layoffs. Other reports on Thursday morning painted a mixed but better-than-feared picture of the manufacturing industry.

Altogether, the economic reports helped send Treasury yields lower in the bond market. The yield on the 10-year Treasury fell to 4.24% from 4.27% late Wednesday.

Treasury yields have been swiveling recently. Stronger-than-expected reports on inflation, the job market and the overall economy have forced traders on Wall Street to delay their forecasts for when the Federal Reserve will begin cutting interest rates.

The Fed has already hiked its main interest rate to the highest level since 2001. The hope is that high rates will squeeze the economy just enough to get inflation down to a comfortable level without causing a recession.

After earlier hoping the Fed may offer some relief and begin cutting rates in March, the thinking on Wall Street is now that won’t happen until May or maybe June. That delay in turn knocked stocks down from their record highs.

Still, the widespread expectation remains for cuts to rates to come this year. It’s just the timing that is changing. In the meantime, the economy continues to look solid, which should help drive growth in profits for companies. That’s helping to keep stocks from falling very much.

CBRE Group jumped 8.5% for one of the largest gains in the S&P 500 after it joined the parade of companies beating analysts’ expectations for profit in the last three months of 2023. Despite difficult conditions for commercial real estate, the company also reported stronger revenue than expected.

Shake Shack was another winner, rising 26% after the burger chain reported better profit and revenue than expected. Its total revenue jumped 20% from a year before, more than forecast.

Wells Fargo climbed 7.2% and was one of the stronger forces pushing the S&P 500 upward. Regulators at the Office of the Comptroller of the Currency removed a consent order issued in 2016, which required the bank to revamp how it sells products to customers after it was caught opening unauthorized accounts.

On the losing end of Wall Street was Deere, which fell 5.2% even though the maker of agricultural equipment’s profit for the latest quarter topped expectations. Deere gave a profit forecast for this fiscal year that fell short of analysts’ estimates, saying conditions in the industry are getting back to normal following a couple record years.

One risk that could upset things is the upcoming U.S. election. The Fed does not like to shift from holding rates steady to cutting too close to an election, according to Bank of America strategists led by Mark Cabana. So if the Fed doesn’t move by June, the possibility rises that it may end up holding rates steady until late 2024 or early 2025.

Still, Cabana said where yields ultimately go will depend more on how far the Fed ends up cutting rates than on when it begins.

In stock markets abroad, the Nikkei 225 rose 1.2% after Japan said its economy shrank for a second consecutive quarter. It dropped behind Germany to become the world’s fourth-largest economy, and the weakness raised expectations that Japan’s central bank may keep interest rates very easy.

The United Kingdom also reported its economy shrank for a second straight quarter. The FTSE 100 index in London rose 0.4%, while stocks were up a bit more across Europe.

ASX 200 expected to jump again​

The Australian share market looks set to end the week strongly following a positive night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open 72 points or 0.9% higher this morning.

U.S. stocks returned to record heights Thursday following some mixed reports on the economy.

The S&P 500 rose 29.11 points, or 0.6%, to 5,029.73 and squeaked by its prior all-time high set last week. The Dow Jones Industrial Average gained 348.85, or 0.9%, to 38,773.12, and the Nasdaq composite climbed 47.03, or 0.3%, to 15,906.17.

 

[bigdog]

Stock market today: Wall Street falls to a rare losing week but remains close to its record

Stocks slipped to send Wall Street to a rare losing week, just its second in the last 16. The S&P 500 fell 0.5% Friday after a report on inflation at the wholesale level came in hotter than expected.

apnews.com

Wall Street falls to a rare losing week but remains close to its record​

By STAN CHOE

NEW YORK (AP) — Stocks slipped Friday to send Wall Street to a rare losing week, just its second in the last 16.

The S&P 500 fell 0.5% from its all-time high set a day earlier. The Dow Jones Industrial Average dropped 145 points, or 0.4%, and the Nasdaq composite sank 0.8%.

A report in the morning on inflation at the wholesale level gave the latest reminder that the battle against rising prices still isn’t over. Prices rose more in January than economists expected, and the numbers followed a similar report from earlier in the week that showed living costs for U.S. consumers climbed by more than forecast.

Treasury yields rose immediately after the report’s release, adding pressure onto the stock market.

The data kept the door closed on hopes that the Federal Reserve could begin cutting interest rates in March, as traders had earlier hoped. It also discouraged bets that a Fed move to relax conditions on the economy and financial markets could come even in May.

The yield on the 10-year Treasury climbed to 4.28% from 4.24% late Thursday. The two-year Treasury yield, which more closely tracks expectations for the Fed, touched its highest level since December.

Higher rates and yields make borrowing more expensive, which puts the brakes on the economy and hurts prices for investments.

Still, the recalibrated bets for cuts to rates have simply brought Wall Street’s forecasts closer to what the Federal Reserve has been outlining. Critics have been saying traders’ expectations had gone overboard in how quickly and how much the Fed could cut rates in 2024.

The wide expectation for the Fed’s next move is still for a cut to its main interest rate, which is at its highest level since 2001, as it’s said it likely will do.

“Markets are likely to take a well-deserved breather following a staggering rally since October, though the lack of emotional reaction to elevated inflation readings and shifting Fed expectations reflect the optimism of investors,” said Mark Hackett, Nationwide’s chief of investment research,

In the meantime, the hope is that the economy continues to remain solid despite the challenge of high interest rates.

A preliminary report on Thursday suggested that sentiment among U.S. consumers is rising, though not by quite as much as economists hoped. That’s key because spending by consumers makes up the bulk of the economy.

In one potentially discouraging signal, the report from the University of Michigan also said that expectations for inflation in the coming 12 months ticked up to 3% in February from 2.9% in January.

If the economy does remain resilient, it would allow companies to deliver growth in profits, which can prop up stock prices.

Applied Materials climbed 6.3% after it reported stronger profit for the latest quarter than analysts expected. The company designs and manufactures systems used to fabricate semiconductor chips, and it’s benefiting from the frenzy underway for artificial-intelligence technology.

Cryptocurrency company Coinbase Global leaped 8.8% after it reported much better results for the latest quarter than forecast. Higher crypto prices helped drive more transaction revenue for the company.

On the losing end was Digital Realty, which sank 8.3%. The owner of data centers reported weaker results than expected.

All told, the S&P 500 fell 24.16 points to 5,005.57. The Dow Jones Industrial Average dropped 145.13 to 38,627.99, and the Nasdaq composite sank 130.52 to 15,775.65.

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

In Japan, Tokyo’s Nikkei 225 rose 0.9% and got closer to its record high set at the end of 1989. That was just before Japan’s “bubble” economy burst as stock and real-estate prices plunged.

Japanese stocks have been rising recently even though its economy has shrunk to become the world’s fourth-largest.

 

[bigdog]

ASX 200 expected to edge higher​

The Australian share market looks set to edge higher on Monday despite a poor finish on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 8 points higher.

On Friday on Wall Street, stocks slipped Friday to send Wall Street to a rare losing week, just its second in the last 16.

The S&P 500 fell 0.5% from its all-time high set a day earlier. The Dow Jones Industrial Average dropped 145 points, or 0.4%, and the Nasdaq composite sank 0.8%.

All told, the S&P 500 fell 24.16 points to 5,005.57. The Dow Jones Industrial Average dropped 145.13 to 38,627.99, and the Nasdaq composite sank 130.52 to 15,775.65.


Market Watch

 

[bigdog]

The New York Stock Exchange was closed Monday February 19 for Presidents’ Day / Washington's Birthday

Stock markets diverge before more key earnings

Major stock markets diverged Monday as traders awaited more earnings this week from heavyweight companies, including HSBC bank, chip giant Nvidia and retail giant Walmart."The US markets will be closed on Monday...but China is back after a week-long holiday, and we will have earnings from Nvidia...

uk.finance.yahoo.com

Stock markets diverge before more key earnings​

AFP

Tue, 20 February 2024 at 3:54 am GMT+11

Major stock markets diverged Monday as traders awaited more earnings this week from heavyweight companies, including HSBC bank, chip giant Nvidia and retail giant Walmart.

US markets were closed Monday for Presidents' Day, depriving other markets of direction.

Focus this week will also be on what clues markets can glean from minutes of recent policy meetings of the US Federal Reserve and European Central Bank about the pair might start cutting interest rates as inflation cools.

On Monday, mainland Chinese stocks were buoyant after Lunar New Year, leading gains in most other Asian markets, as figures showed holiday spending surged past pre-pandemic levels.

Hong Kong closed down 1.1 percent, breaking a three-day rally, with analysts saying investors felt uneasy after a decision by China's central bank to leave a key policy rate unchanged, seen as an attempt to bolster the yuan.

Tokyo's key Nikkei index ended flat.

In Europe, Frankfurt dipped and Paris ended flat. London edged higher, managing to avoid an overall loss as shares in AstraZeneca rallied after the drugs giant had a lung cancer treatment approved in the United States.

"The US markets will be closed on Monday...but China is back after a week-long holiday, and we will have earnings from Nvidia in mid-week," noted Fawad Razaqzada, market analyst at City Index trading group.

"Investors have continually ignored the Fed’s consistent pushback against expectations of an early rate cut. Instead, they have chosen to concentrate on mostly stronger earnings and the AI optimism, taking advantage of the bullish momentum to drive stocks higher."

Razaqzada cautioned that "a correction of some sort, should not come as major surprise in the tech sector".

A larger-than-expected rise in US wholesale prices, according to data on Friday, dealt a blow to hopes of an early interest-rate cut by the Fed.

Elsewhere Monday, oil prices rose as tensions in the crude-rich Middle East ratcheted higher with a US-owned cargo ship coming under attack twice off southern Yemen.

- Key figures around 1630 GMT -

London - FTSE 100: UP 0.2 percent at 7,728.50 points (close)

Paris - CAC 40: FLAT at 7,768.55 (close)

Frankfurt - DAX: DOWN 0.2 percent at 17,092.26 (close)

EURO STOXX 50: DOWN less than 0.1 percent at 4,763.07 (close)

Tokyo - Nikkei 225: FLAT at 38,470.38 (close)

Hong Kong - Hang Seng Index: DOWN 1.1 percent at 16,155.61 (close)

Shanghai - Composite: UP 1.6 percent at 2,910.54 (close)

ASX 200 expected to edge higher​

The Australian share market is expected to edge higher on Tuesday despite a mixed start to the week on global markets.

According to the latest SPI futures, the ASX 200 is poised to open the day 2 point higher.

Wall Street was closed but the FTSE rose 0.2% and the DAX was down 0.15%.

The New York Stock Exchange was closed Monday February 19

Rest of World Trading

 

[bigdog]

Stock market today: Asian stocks mixed after Tech stocks pull Wall Street lower with focus on Nvidia

Asian stocks were mixed after technology stocks led Wall Street broadly lower, with investors waiting for chipmaker Nvidia’s quarter earning report later in the day.

apnews.com

Tech stocks pull Wall Street lower, led by investor favorite Nvidia​

By DAMIAN J. TROISE

NEW YORK (AP) — Technology stocks led Wall Street broadly lower as chipmaker Nvidia pulled back ahead of its earnings report this week. The S&P 500 fell 0.6% Tuesday. The benchmark index is coming off only its second losing week in the last 16. The Nasdaq composite gave up 0.9% and the Dow lost 0.2%. Nvidia, which has ridden a wave of investor enthusiasm over artificial intelligence, lost 4.4%. The stock has more than tripled over the past year. Walmart rose 3.2% after reporting stronger-than-expected results for its latest quarter and issuing sales forecasts that came in ahead of what Wall Street was expecting.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

NEW YORK (AP) — Stocks fell on Wall Street in afternoon trading Tuesday to kick off a holiday-shortened week.

The S&P 500 slipped 0.6% and is coming off only its second losing week in the last 16. The losses pushed the benchmark index further below the record it set last week.

The Dow Jones Industrial Average fell 38 points, or 0.1%, as of 2:54 p.m. Eastern time. The Nasdaq composite fell 1.1%.

Markets were closed in the U.S. on Monday for Presidents Day.

Technology stocks were among the biggest weights on the market. Chipmaker Nvidia slumped 4.7% and Microsoft fell 0.6%.

Big retailers reported mixed earnings. Walmart rose 3.5% after reporting stronger-than-expected results for its latest quarter and issuing sales forecasts that came in ahead of what Wall Street was expecting.

Home improvement retailer Home Depot wavered between small gains and losses. It beat Wall Street’s earnings forecasts, but gave investors a disappointing profit forecast for the year.

Outside of earnings, credit card company Capital One Financial rose 0.2% as it moves ahead with a $35 billion buyout of Discover Financial Services. Discover soared 12.9% for the biggest gain in the S&P 500.

Markets are coming off of a heavy week of economic reports that hinted at stubborn inflation squeezing consumer spending. That has pushed expectations for the Federal Reserve to start cutting interest rates further out into 2024. The central bank on Wednesday will release minutes from its latest meeting, potentially giving investors more insight into its next move.

The central bank held interest rates steady at its last meeting in late January and investors had been hoping for rate cuts as soon as March. Those hopes were dashed by the Fed’s comments and the latest batch of economic data. Wall Street is now betting on a possible rate cut in May and a likely rate cut in June, according to CME’s FedWatch Tool.

Those lowered expectations for interest rate cuts and renewed worries about inflation have essentially tripped up the broader market.

“The narrative that drove us to these levels is very much being called into question,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

Bond yields fell. The yield on the 10-year Treasury slipped to 4.25% from 4.28% late Friday. The yield on the two-year Treasury fell to 4.58% from 4.65%.

Markets in Europe were mixed and markets in Asia were mostly higher.

China’s central bank kept its 1-year loan prime rate unchanged on Tuesday but cut its 5-year rate by 25 basis points to 3.95%. That came as a surprise, the first time the five-year rate was cut since May 2023.

Investors have a relatively light week of economic updates ahead, with the latest data on home sales expected Thursday. The broader housing market remains tight, with demand still outpacing supplies. Mortgage rates also remain high, though they have been easing from their most recent peak in late October, when the average rate on a 30-year mortgage hit 7.79%.

Companies from a broad range of industries will report their latest earnings this week. Chipmaking giant Nvidia will release its results on Wednesday along with online crafts marketplace Etsy. Online travel company Booking Holdings reports Thursday. The latest batch of results might give investors a clearer idea of the economy’s path ahead.

More than 80% of companies in the S&P 500 have reported their latest results. Analysts polled by FactSet expect overall earnings growth of about 3.3% for the fourth quarter and are forecast earnings growth of about 3.6% for the current quarter.

Wall Street will have to wait until the end of February for another key update on inflation, when the government releases its monthly personal consumption and expenses report, which is the Fed’s preferred measure.

“The key question to answer now is whether inflation is bottoming out, and if it is, does it go sideways or back up,” Samana said.

ASX 200 expected to tumble​

The Australian share market looks set to tumble on Wednesday after a poor start to the shortened week in the United States.

According to the latest SPI futures, the ASX 200 is expected to open the day 21 points or 0.3% lower.
Stocks fell on Wall Street in afternoon trading Tuesday to kick off a holiday-shortened week.

The S&P 500 slipped 0.6% and is coming off only its second losing week in the last 16. The losses pushed the benchmark index further below the record it set last week.

The Dow Jones Industrial Average fell 38 points, or 0.1%, as of 2:54 p.m. Eastern time. The Nasdaq composite fell 1.1%.

 

[bigdog]

Stock market today: Japan's benchmark briefly reaches all-time high after rally on Wall Street

Japan's Nikkei 225 share benchmark has touched an all-time high, bypassing its previous record set in December 1989.

apnews.com

Wall Street ends mostly higher after a late wave of buying​

By DAMIAN J. TROISE

NEW YORK (AP) — Stocks mostly fell on Wall Street Wednesday after a listless day of trading with big technology stocks again acting as a heavy weight on the market.

The S&P 500 fell 6.29 points, or 0.1%, to 4,981.80. The benchmark index spent much of the day in losing territory before climbing higher just before markets closed.

The Dow Jones Industrial Average also eked out a slight gain after losing ground most of the day. It rose 48.44 points, or 0.1%, to 38,612.24.

The technology-heavy Nasdaq composite fell 49.91 points, or 0.3%, to 15,580.87.

Earnings remained the big focus for Wall Street. After markets closed, Nvidia reported earnings and revenue that handily beat Wall Street forecasts. The chipmaker has tripled over the past year thanks to a surge in investor enthusiasm over artificial intelligence.

Palo Alto Networks was a big loser and a particularly heavy weight on the tech sector. The network security company sank 28.4% after giving forecasts for future billings that came in well below what analysts were looking for. Rival Fortinet slumped 3.8%.

Amazon rose 0.9% following an announcement that it would be added to the Dow. Walgreens Boots Alliance, which is leaving the Dow, fell 2.5%

Bond yields gained ground. The yield on the 10-year Treasury rose to 4.33% from 4.28% late Tuesday.

Technology stocks drove much of the market’s rally that brought it to record highs just last week. The sector is also showing some of the strongest earnings growth. Lopsided contributions from some of the bigger companies in the sector, however, have raised questions about whether the gains were overdone.

“In February we’re seeing some of that settle out as we try and get a better bead on how the full year is going to go,” said Rob Haworth, senior portfolio manager at U.S. Bank Wealth Management.

Several other companies made big moves following the release of their financial results. Electronic measurement technology company Keysight Technologies fell 6.7% after its profit forecast fell short of analysts’ expectations. Garmin, which makes personal navigation devices, jumped 8.8% after beating earnings forecasts.

Toll Brothers rose 3.9% after giving investors an encouraging financial update as it sees strong demand. That helped support gains throughout the homebuilding sector.

Energy companies gained ground as natural gas prices jumped 12.5%. Exxon Mobil rose 2%.

The Federal Reserve released minutes from its latest meeting in January that showed most officials are worried about moving too fast to cut their benchmark interest. The central bank left the rate alone for the fourth time in a row at that meeting. Investors have all but lost hope that the central bank will cut rates at its March meeting and are looking for the first rate cut to come in June.

Investors have to wait until next week for another key update on inflation. That’s when the government will release its monthly report on personal consumption and expenses, the Fed’s preferred measure of inflation. The central bank’s goal has been to tame inflation back to 2% and analysts expect that report to show it cooled to 2.3% in January. Inflation by that measure peaked at 7.1% in June of 2022.

“As long as the labor market holds up, the Fed can afford to slow walk rate cuts,” said Jamie Cox, managing partner for Harris Financial Group. “Inflation fighting is much easier when the labor market cooperates.”

Separate measures for consumer and wholesale prices in January show that inflation didn’t cool as much as anticipated. That prompted investors to shift expectations for rate cuts from March to June. A weak report on retail sales added to the disappointing inflation data and raised concerns that stubborn inflation is inflicting more pain on consumers. Tighter consumer spending could put more pressure on businesses in 2024.

ASX 200 expected to fall again​

The Australian share market looks set to fall again on Thursday following a listless day of trading on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 19 points or 0.25% lower this morning.

Stocks mostly fell on Wall Street Wednesday after a listless day of trading with big technology stocks again acting as a heavy weight on the market.

The S&P 500 fell 6.29 points, or 0.1%, to 4,981.80. The benchmark index spent much of the day in losing territory before climbing higher just before markets closed.

The Dow Jones Industrial Average also eked out a slight gain after losing ground most of the day. It rose 48.44 points, or 0.1%, to 38,612.24.

The technology-heavy Nasdaq composite fell 49.91 points, or 0.3%, to 15,580.87.

 

[bigdog]

Stock market today: Asian stocks are mixed after Nvidia sets off a rally on Wall Street

Nvidia, the AI chipmaker, reported another blowout quarter.

apnews.com

Nvidia surges on AI boom, setting off a rally on Wall Street​

By DAMIAN J. TROISE

NEW YORK (AP) — Nvidia’s stock price surged Thursday after delivering another blowout quarter, setting off a rally in other technology companies that carried Wall Street to another record high.

The chipmaker, a central player in the boom surrounding artificial intelligence, reported scorching demand for its semiconductors.

The S&P 500 rose 105.23 points, or 2.1%, to 5,087.03, an all-time high. The Nasdaq rose 460.75 points, or 3%, to 16,041.62.

The Dow Jones Industrial Average, which has a smaller weighting in tech stocks, jumped 456.87 points, or 1.2%, to 39,069.11. That marks its first close above 39,000.

Nvidia soared 16.4%, leading the gains for tech companies and the market. Its stock has tripled over the past year thanks to a surge in investor enthusiasm for artificial intelligence. Synopsis, which makes software used to test and develop chips, rose 6.9% after raising its profit forecast.

Other chipmakers and companies involved in the chipmaking industry also gained ground. Advanced Micro Devices rose 10.7% and Lam Research added 4.7%.

Technology stocks have been the driving force behind the market’s rally that started in October. Solid earnings from some of the biggest names in the sector are helping justify and reinforce those gains.

“Investors are still wondering, will the market top out or broaden out,” said Sam Stovall, chief investment strategist at CFRA. “As of now, investors are basically saying I’m going to let this market take me where it wants to go, and right now that’s higher.”

Overnight, Japan’s Nikkei 225 surged to an all-time high. Record gains in corporate earnings have enhanced the appeal of shares in Japanese companies, along with the weakness of the Japanese yen against the U.S. dollar.

On the losing end, electric truck and SUV maker Rivian tumbled 25.6% after it reported another loss and issued a weaker-than-expected production outlook. Lucid, another electric vehicle maker, slid 16.8% after it missed Wall Street sales forecast and also gave a weaker production estimate than analysts had called for.

Online craft marketplace Etsy fell 8.4% after it missed Wall Street’s profit forecast by a wide margin.

AT&T fell 2.4% after an outage knocked out cellphone service on its network across the U.S. for hours.

Wall Street expects just under 4% growth for earnings in the overall S&P 500 during the fourth quarter. The communication services sector, which includes Google’s parent Alphabet, is expected to report 45% growth. Information technology companies, which include Nvidia, are expected to notch 22% growth.

“The near-term momentum in AI-related stocks is likely to continue,” said Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management.

Nearly 90% of companies in the S&P 500 have reported earnings. There are still a few big names left to report over the next several weeks, including Lowe’s, Dollar Tree and Best Buy.

Wall Street’s focus on earnings this week follows economic data from the previous week that prompted a stumble in the market. Inflation data came in hotter than Wall Street expected, while retail sales fell more than anticipated. That raised concerns about the timing of hoped-for interest rate cuts from the Federal Reserve.

Wall Street is now betting that the central bank will start trimming its benchmark rate in June, rather than March.

Investors could get more clarity on inflation next week when the government releases its monthly report on personal consumption and expenditures, the Fed’s preferred measure. The Fed is trying to get inflation back down to its target of 2%. Analysts expect that report to show inflation cooled to 2.3% in January. It peaked at 7.1% in June of 2022.

Bond yields were relatively steady. The yield on the 10-year Treasury rose to 4.34% from 4.32% late Wednesday.

ASX 200 expected to rise again​

The Australian share market looks set to end the week in a positive fashion following a stunning night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open 32 points or 0.4% higher this morning.

Nvidia’s stock price surged Thursday after delivering another blowout quarter, setting off a rally in other technology companies that carried Wall Street to another record high.

The chipmaker, a central player in the boom surrounding artificial intelligence, reported scorching demand for its semiconductors.

The S&P 500 rose 105.23 points, or 2.1%, to 5,087.03, an all-time high. The Nasdaq rose 460.75 points, or 3%, to 16,041.62.

The Dow Jones Industrial Average, which has a smaller weighting in tech stocks, jumped 456.87 points, or 1.2%, to 39,069.11. That marks its first close above 39,000.