NYSE Dow Jones finished today at:

[bigdog]

Stock market today: Wall Street clings to modest gains and marks another winning week

Another blowout quarter from Nvidia sees world markets mostly higher. The stock set off a rally in other technology companies that carried Wall Street to another record high.

apnews.com

Wall Street clings to modest gains and marks another winning week​

By DAMIAN J. TROISE

NEW YORK (AP) — Stocks clung to modest gains on Wall Street Friday, giving the market another record high and a winning week.

The listless day for stocks capped off a mostly solid week of earnings where the technology sector once again powered the market higher. The sector has been the driving force behind a rally that started in October.

The S&P 500 index rose 1.77 points, or less than 0.1%, to 5,088.80. That marks another record high for the benchmark index and its sixth winning week in the last seven.

Dow Jones Industrial Average rose 62.42 points, or 0.2%, to 39,131.53. The Nasdaq slipped 44.80 points, or 0.3%, to 15,996.82.

Weakness in some technology companies weighed down the market, in a reversal from Thursday. Apple fell 1%. Nvidia eked out a 0.4% gain, after crossing above the $2 trillion valuation mark earlier in the day. On Thursday, the chipmaker surged after reporting blockbuster demand for its semiconductors, which are used to power AI applications.

A pullback by travel-related companies also checked gains elsewhere in the market. Booking.com tumbled 10.1%, dragging other travel-related companies down. The online travel service beat Wall Street’s fourth-quarter sales and profit targets but issued a lukewarm forecast that spooked investors. Competitor Expedia Group fell 2%.

“Investors are sanguine, with political uncertainty, elevated valuations, and Fed uncertainty not able to dent the momentum in the market,” said Mark Hackett, chief of investment research at Nationwide.

Earnings remained the big focus. Ticket seller and concert promoter Live Nation rose 2% after beating analysts’ revenue forecasts. Sleep Number, which sells beds and bedding products, surged 33% after beating beat Wall Street’s revenue forecasts.

On the losing end, Warner Bros. Discovery fell 9.9% after reporting a bigger loss than Wall Street expected.

Outside of earnings, Intuitive Machines, the company that made the first U.S. lunar landing in more than 50 years, soared 15.8%.

Energy stocks were mostly lower as oil and natural gas prices fell. U.S. crude oil prices slumped 2.7% and natural gas prices fell 7.4%.

Treasury yields slipped. The yield on the 10-year Treasury fell to 4.26% from 4.33% late Thursday.

Markets were mostly higher in Europe and Asia. Tokyo’s markets were closed for a holiday, a day after they surged to an all-time high.

Investors have more big earnings to review next week as they try to get a better sense of where the economy is headed. Home improvement retailer Lowe’s and discount retailer Dollar Tree will report results. Computer maker HP and electronics retailer Best Buy will also release their results.

Analysts polled by FactSet expect companies in the S&P 500 to report earnings growth of just under 4% for the fourth quarter. Roughly 90% of companies in the index have already reported. Analysts are forecasting earnings growth of 3.6% for the current quarter.

Wall Street will also get more economic data that could further clarify how consumers are feeling and whether inflation is still cooling. The Conference Board will release its consumer confidence survey for February and the government will provide another update on gross domestic product during the fourth quarter.

The big focus will be on inflation data from the government’s January report on personal consumption and expenditures. It is the Federal Reserve’s preferred measure of inflation and is expected to cool to 2.4%. It peaked at 7.1% in June of 2022.

The Fed has been trying to tame inflation back to its target of 2% and data last week on consumer and wholesale prices came in hotter than Wall Street expected. That prompted Wall Street to push expectations for the central bank to start cutting its benchmark interest. Traders are now expecting the Fed to cut rates in June instead of March.

 

[bigdog]

ASX 200 expected to edge higher​

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

According to the latest SPI futures, the ASX 200 is expected to open the day 4 points higher.

Stocks clung to modest gains on Wall Street Friday, giving the market another record high and a winning week.

The listless day for stocks capped off a mostly solid week of earnings where the technology sector once again powered the market higher. The sector has been the driving force behind a rally that started in October.

The S&P 500 index rose 1.77 points, or less than 0.1%, to 5,088.80. That marks another record high for the benchmark index and its sixth winning week in the last seven.

Dow Jones Industrial Average rose 62.42 points, or 0.2%, to 39,131.53. The Nasdaq slipped 44.80 points, or 0.3%, to 15,996.82.

Market Watch

 

[bigdog]

Stock market today: Wall Street edges back from its record heights

Asian shares have retreated after U.S. stocks edged back from their record heights. Most regional markets fell, while Shanghai advanced.

apnews.com

Wall Street edges back from its record heights​

By STAN CHOE

NEW YORK (AP) — U.S. stocks edged back from record levels Monday as they head for the final stretch of what looks to be their latest winning month.

The S&P 500 slipped 19.27 points, or 0.4%, to 5,069.53 after closing last week at an all-time high. The Dow Jones Industrial Average fell 62.30, or 0.2%, to 39,069.23, and the Nasdaq composite dipped 20.57, or 0.1%, to 15,976.25.

Berkshire Hathaway was one of the heaviest weights on the market, even though Warren Buffett’s company reported stronger results for the end of 2023 than analysts expected. Class-B shares of the company, whose subsidiaries include GEICO, Fruit of the Loom and Brooks running shoes, initially jumped more than 3% but later fell back to a loss of 1.9%.

The famed investor warned shareholders not to expect any more “eye-popping performance” because there are no bargains available in the market of big enough size to make a meaningful difference. Buffett is notorious for buying companies when they’re cheap.

That follows broader criticism from some financial analysts that prices all over Wall Street have soared too high in its big run since Halloween.

The S&P 500 is on track to close out its fourth straight winning month and is coming off its 15th winning week in the last 17. And the stock market may not have been cheap even when it bottomed out in October 2022. That marked the priciest bear-market low in history, according to some measures of stock prices against corporate earnings, says Doug Ramsey, chief investment officer of Leuthold.

This recent rally got going last October amid hopes that inflation is cooling enough for the Federal Reserve to cut interest rates several times this year. Such cuts would relax the pressure on the economy and financial system, while goosing investment prices.

Expectations are still high for rate cuts to come eventually this year, but traders have been delaying their forecasts following some stronger-than-expected reports on the economy. That data in the meantime raises hopes that growth in profits for companies can strengthen, which helps stock prices too.

Domino’s Pizza jumped 5.8% for one of the biggest gains in the S&P 500 after it reported profit for the last three months of 2023 that topped analysts’ expectations.

Amazon’s stock slipped 0.1% in its first day as a member of the Dow Jones Industrial Average. It replaced Walgreens Boots Alliance, which fell 3.4%.

Homebuilder stocks were mixed after a report showed sales of new homes strengthened last month by less than economists expected. Toll Brothers gained 1.1%, and Lennar fell 0.6%.

Intuitive Machines lost more than a third of its value after the company said its lunar lander may stop working Tuesday after it landed sideways near the south pole of the moon. The 34.6% drop, though, only trims what’s been a moonshot for its stock so far this year. It’s still up 145.4% since the end of 2023.

Last week, stocks got a big boost after another blowout report from Nvidia added more chum to the frenzy that’s already built around artificial-intelligence technology. Nvidia, whose chips help power AI technologies, rose another 0.3% Monday, and it’s already up nearly 60% so far this year.

Earnings reporting season for the big companies in the S&P 500 is in its tail end, but this week still offers updates from several big names. They include several that could give color on how well spending by U.S. households is holding up. Such spending has been one of the main reasons the U.S. economy has blasted through expectations for a possible recession.

Best Buy, Lowe’s and TJX, the parent company of T.J. Maxx and Marshalls, will all report this week. So will several big tech-related companies, including Salesforce.com and HP.

On the economic calendar, the U.S. government on Thursday will give the latest update on the measure of inflation that the Federal Reserve prefers to use. It’s usually a less impactful report, because data on inflation at the consumer and wholesale levels for the month have already been released.

But those reports came in hotter than economists expected, which could lead to more volatility this time around. The hope on Wall Street is that inflation will continue to cool fast enough to convince the Federal Reserve to begin cutting rates by June.

Treasury yields ticked higher in the bond market. The yield on the 10-year Treasury rose to 4.27% from 4.25% late Friday.

In stock markets abroad, indexes were mixed. Japan’s Nikkei 225 added 0.3% to set another record after recouping the last of the losses suffered in the bursting of its “bubble” economy at the end of 1989.

Stocks were lower across much of the rest of Asia and mixed in much of Europe.

ASX 200 expected to fall​

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

According to the latest SPI futures, the ASX 200 is poised to open the day 4 points lower.

U.S. stocks edged back from record levels Monday as they head for the final stretch of what looks to be their latest winning month.

The S&P 500 slipped 19.27 points, or 0.4%, to 5,069.53 after closing last week at an all-time high. The Dow Jones Industrial Average fell 62.30, or 0.2%, to 39,069.23, and the Nasdaq composite dipped 20.57, or 0.1%, to 15,976.25.

 

[bigdog]

Stock market today: Asian stocks lower after Wall Street holds steady near record highs

Asian markets are mostly lower as Wall Street benchmarks held near their record levels. U.S. futures and oil prices fell.

apnews.com

Wall Street holds steady near record highs​

By STAN CHOE

The S&P 500 added 8.65 points, or 0.2%, to 5,078.18 and is just off its all-time high set last week. The Dow Jones Industrial Average dipped 96.82, or 0.2%, to 38,972.41, and the Nasdaq composite rose 59.05, or 0.4%, to 16,035.30.

Macy’s climbed 3.4% after reporting better results for the latest quarter than feared. It also announced a sweeping reorganization as it tries to kickstart growth in revenue. It will close about 150 stores and focus on opening new Bloomingdale’s and Bluemercury locations.

Norwegian Cruise Line Holdings steamed 19.8% higher for the biggest gain in the S&P 500 after saying it’s seeing healthy demand from customers. It also gave a forecast for earnings this upcoming year that was bigger than analysts’ own.

AutoZone revved 6.7% higher after reporting a stronger profit than expected. Much of its growth last quarter came from its stores in Mexico and Brazil.

Zoom Video Communications climbed after topping analysts’ forecasts for profit last quarter. It rose 8% to $68.17, though it’s still well below its peak above $560 during the height of the pandemic. It also announced a program to buy back up to $1.5 billion of its stock, which would send cash directly to shareholders.

Those winners helped offset a 1.5% drop for Chevron, which warned that its pending takeover of Hess may be under threat. The energy companies are in discussions with Exxon Mobil and China National Offshore Oil Corp. about a joint operating agreement for a project off Guyana’s shore. If they can’t come to an acceptable resolution, Chevron said in a filing with U.S. securities regulators that its merger with Hess may not close.

Chevron was one of the main reasons for the Dow Jones Industrial Average’s slide. Hess fell 3.1%.

Nvidia was another weight on the market, dipping 0.5% to take a bit of shine off its jaw-dropping run. Its stock is still up nearly 59% so far this year after soaring nearly 240% last year amid Wall Street’s frenzy around artificial-intelligence technology.

Moves for Nvidia’s stock pack an extra weight on the S&P 500 because it’s the third-largest stock on Wall Street by market value. It and a handful of other Big Tech companies have been responsible for a huge, disproportionate amount of the S&P 500’s rally since its bottom in October 2022.

To see how top-heavy the market has become, consider how the S&P 500 would be behaving if it gave each stock’s movement the same weight regardless of size. The S&P 500 is beating that equal-weighted index on a one-year rolling basis by a wide margin, “just a whisker shy of the Dot.com bubble record highs,” according to strategists at Barclays.

Unlike that bubble, though, the companies driving the growth this time are actually making profits and not flying on just hype.

“As such the investment case for continued outperformance remains intact, but arguably more vulnerable to occasional corrections, given ebullient sentiment,” according to the strategists led by Stefano Pascale and Anshul Gupta.

Along with tech stocks, cryptocurrency prices have also been running higher. Bitcoin rose above $57,000 before edging back below the threshold and is up by roughly a third so far this year already.

New exchange-traded funds that hold bitcoin have made investing in the cryptocurrency easier, while also driving business for Coinbase and others who safeguard those ETFs’ bitcoins. Coinbase rose 2.7% Tuesday to bring its gain for the year so far to 14.5%.

Earnings reporting season is winding down for the big companies in the S&P 500, and the hope is that a remarkably solid U.S. economy will help profits grow through this year.

A report in the morning showed orders for long-lasting manufactured goods were weaker last month than economists expected, but they were better than forecast after ignoring airplanes and other transportation items.

A separate report said that confidence among U.S. consumers unexpectedly slipped. Confidence had been on the upswing, and it’s a closely followed figure on Wall Street because spending by consumers makes up the bulk of the U.S. economy.

On the upside for investors, the report also showed that expectations for inflation among U.S. consumers ticked down a bit.

Treasury yields were mixed but held relatively steady following the reports. Yields have been climbing this year as traders push back forecasts for when the Federal Reserve may begin cutting interest rates.

In stock markets abroad, indexes were mostly higher across Asia and Europe. Stocks jumped 1.3% in Shanghai but sank 0.8% in Seoul. Tokyo’s Nikkei 225 was little changed, remaining near its highest level in history.


ASX 200 expected to rise
The Australian share market looks set to rise again on Wednesday with Wall Street holds steady near record highs.

According to the latest SPI futures, the ASX 200 is expected to open the day 21 points or 0.2% higher.

U.S. stocks held near their record levels on Tuesday after a quiet day of trading.

The S&P 500 added 8.65 points, or 0.2%, to 5,078.18 and is just off its all-time high set last week. The Dow Jones Industrial Average dipped 96.82, or 0.2%, to 38,972.41, and the Nasdaq composite rose 59.05, or 0.4%, to 16,035.30.

 

[bigdog]

Stock market today: Asian shares are mixed after Wall Street slips lower and bitcoin bounces higher

U.S. stocks drifted Wednesday and edged a bit lower from their all-time highs. Meanwhile, bitcoin’s price topped $61,000 for the first time since 2021.

apnews.com

Wall Street drifts lower as bitcoin bounces even higher​

By STAN CHOE

NEW YORK (AP) — U.S. stocks drifted lower Wednesday to edge a bit further from their all-time highs.

The S&P 500 slipped 8.42 points, or 0.2%, to 5,069.76, continuing its quiet and listless run since setting a record last week. The Dow Jones Industrial Average dipped 23.39, or 0.1%, to 38,949.02. The Nasdaq composite sank 87.56, or 0.5%, to 15,947.74 a day after pulling within 0.1% of its record set in 2021.

Treasury yields also eased in the bond market after a report said the U.S. economy likely grew a touch slower at the end of 2023 than earlier estimated. The growth was nevertheless still solid, as the economy continues to defy expectations of a recession despite high interest rates meant to bring down inflation.

A 1.3% drop for Nvidia and 1.8% slump for Google’s parent company, Alphabet, were two of the heaviest weights on the market. They’re among a small group of Big Tech stocks that have been disproportionately responsible for the S&P 500’s run to records.

Such concentration in the market can be a concerning signal, according to Scott Wren, senior global market strategist at Wells Fargo Investment Institute. Broad gains among a wide variety of stocks are typically a more favorable sign that the market’s strength is sustainable.

Bumble tumbled 14.8% after it reported weaker results for the latest quarter than analysts expected. The dating and friend-making app company, which recently revamped its leadership team, also gave a forecast for revenue this upcoming year that fell short of analysts’ expectations.

Boston Beer, the company behind Samuel Adams, slid 15.8% after reporting a larger loss than analysts expected. It was hurt by declines for its Truly hard seltzer.

Urban Outfitters dropped 12.8% after the retailer reported weaker results than expected. The company, which also runs Anthropologie stores, said sales are continuing to weaken at its Urban Outfitters locations.

Helping to limit the market’s losses was eBay, which rose 7.9% after reporting stronger results than analysts expected. Axon Enterprise, the company that sells Tasers, body cameras and other equipment, also turned in a better-than-expected profit report, and its stock jumped 13.8%.

Coinbase gained 0.8% after rising more earlier in the day to continue its strong run as bitcoin’s price keeps rallying. New exchange-traded funds that make investing in bitcoin easier have raised interest in the cryptocurrency, with BlackRock’s iShares Bitcoin fund alone quickly growing to $7 billion in assets.

Bitcoin’s price briefly topped $64,000 Wednesday for the first time since 2021. It’s pulling closer to its record of nearly $69,000 after rising more than 40% so far this year.

Coinbase’s CEO, Brian Armstrong, apologized to customers during the day for issues they encountered because the company was “dealing with a LARGE surge of traffic” as bitcoin’s price soared. The company said some users may have seen a zero balance across their accounts and had errors in buying and selling.

Beyond Meat surged 30.7% even though it reported much weaker results for the latest quarter than expected. Its revenue was slightly better than forecast after falling less than expected, and it said its profitability will likely increase through 2024.

Agilent Technologies gained 3.4% for one of the bigger gains in the S&P 500 after beating forecasts for both profit and revenue.

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

Stocks fell 1.9% in Shanghai and 1.5% in Hong Kong. China’s largest private property developer, Country Garden, said Wednesday it’s facing a liquidation petition after failing to repay a term loan facility worth 1.6 billion Hong Kong dollars ($204.5 million). The first hearing in the case is scheduled for May 17.

The move comes after China Evergrande, the world’s most heavily indebted real estate developer, was ordered to undergo liquidation following a failed effort to restructure $300 billion in late January.

In the bond market, the yield on the 10-year Treasury slipped to 4.26% from 4.31% late Tuesday.

ASX 200 expected to fall again​

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

According to the latest SPI futures, the ASX 200 is expected to open the day 11 points or 0.1.5% lower this morning.

U.S. stocks drifted lower Wednesday to edge a bit further from their all-time highs.

The S&P 500 slipped 8.42 points, or 0.2%, to 5,069.76, continuing its quiet and listless run since setting a record last week. The Dow Jones Industrial Average dipped 23.39, or 0.1%, to 38,949.02. The Nasdaq composite sank 87.56, or 0.5%, to 15,947.74 a day after pulling within 0.1% of its record set in 2021.


Bitcoin surges to highest level in two years,

Almost a sea of RED yesterday

 

[bigdog]

Stock market today: Asia stocks rise follow Wall Street climbs to more all-time highs

Asia stocks gain after U.S. stocks climbed to all-time highs. U.S. futures edged higher and oil prices advanced.

apnews.com

Wall Street climbs to close another winning month with more records​

By STAN CHOE

NEW YORK (AP) — U.S. stocks climbed to more all-time highs Thursday as Wall Street closed its latest winning month.

The S&P 500 rose 26.51 points, or 0.5%, to 5,096.27 to top its record set last week. The Nasdaq composite led the market with a gain of 144.18, or 0.9%, to 38,996.39 and surpassed its all-time high that had stood since 2021. The Dow Jones Industrial Average finished just below its record set last week after rising 47.37 points, or 0.1%, to 38,996.39.

In the bond market, yields eased after a closely followed inflation report showed prices across the country rose pretty much as expected last month. That calmed worries that had built on Wall Street that the inflation data could show a discomforting reacceleration. Earlier reports had shown prices rose more than expected in January at both the consumer and wholesale levels.

“While inflation was hotter than it’s been in a while, it may be more of a flash in the pan than the start of something worse,” said Brian Jacobsen, chief economist at Annex Wealth Management.

Thursday’s report kept intact hopes that the Federal Reserve may begin cutting interest rates in June. Such a move would relax the pressure on the economy and boost investment prices, and the Fed has indicated several cuts may be coming this year.

The Fed’s main interest rate is sitting at its highest level since 2001 in hopes of grinding down inflation by dragging on the economy through more expensive mortgage and credit-card payments. Hopes for coming cuts to rates helped launch the U.S. stock market’s big rally in late October, and the S&P 500 just closed its fourth straight winning month.

Relief on rates, though, would come only if the Fed sees additional convincing data that inflation is sustainably heading down toward its target of 2%.

Traders have recently been pushing back forecasts for when the Fed may begin cutting rates. A series of strong reports on the economy have pushed expectations out from March. On Thursday, another report showed fewer U.S. workers filed for unemployment benefits last week than economists expected. It’s the latest signal of a remarkably resilient job market.

In the meantime, the hope is that a solid economy will fuel growth in profits for U.S. companies, even if it means a delay to rate cuts.

Salesforce.com became one of the latest companies to report better profit for the latest quarter than analysts expected on Wednesday evening. The customer-resource management software company also said it plans to begin paying a quarterly dividend to its investors, but it gave a forecast for revenue this upcoming year that was a bit below analysts’ expectations. Its stock climbed 3% after flipping between gains and losses in the morning.

Hormel Foods led the S&P 500 with a 14.6% leap after it reported stronger profit and revenue than expected. It cited broad-based growth across its brands, including Skippy peanut butter, Chi-Chi’s salsa and Corn Nuts snacks.

Nvidia climbed 1.9% to recover losses from a back-to-back drop, a rare blip in what’s been a monster run amid Wall Street’s frenzy around artificial-intelligence technology. Because it’s one of the biggest stocks on Wall Street, Nvidia was one of the strongest forces lifting the S&P 500.

C3.ai jumped 24.5% after the software company reported a smaller loss than analysts expected and stronger revenue.

They helped offset a 5.4% drop for Bath & Body Works. The seller of fragrances, body lotion and three-wick candles reported better profit than expected, helped by a strong holiday season, but it said sales may weaken this upcoming year.

Even though it nearly doubled analysts’ fourth-quarter profit projections, the cloud-computing company Snowflake tumbled 18.1% after a surprise announcement that CEO Frank Slootman was retiring effective immediately. Slootman will be replaced by Sridhar Ramaswamy.

Chemours tumbled 31.5% after it put its CEO and two other top executives on administrative leave while the audit committee of its board conducts a review. The company said it needs more time to complete its year-end reporting process, and it delayed the release of its quarterly results, which was earlier planned for Wednesday.

In the bond market, the yield on the 10-year Treasury slipped to 4.25% from 4.27% late Wednesday.

The two-year yield, which more closely tracks expectations for the Fed, dipped to 4.63% from 4.65%. It had been near 4.70% shortly before the morning’s release of the inflation data.

In stock markets abroad, indexes were mixed.

Tokyo’s Nikkei 225 dipped 0.1% after data showed factory output falling in January at the fastest pace since May 2020, though retail sales were stronger than expected.

Hong Kong’s Hang Seng slipped 0.2%, while stocks in Shanghai jumped 1.9%. The smaller index in Shenzhen surged even more after regulators released new measures to support markets including closer oversight of financial derivatives.

ASX 200 expected to edge higher​

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

According to the latest SPI futures, the ASX 200 is expected to open 20 points or 0.2% higher this morning.
U.S. stocks climbed to more all-time highs Thursday as Wall Street closed its latest winning month.

The S&P 500 rose 26.51 points, or 0.5%, to 5,096.27 to top its record set last week. The Nasdaq composite led the market with a gain of 144.18, or 0.9%, to 38,996.39 and surpassed its all-time high that had stood since 2021. The Dow Jones Industrial Average finished just below its record set last week after rising 47.37 points, or 0.1%, to 38,996.39.


Market Watch

 

[bigdog]

Stock market today: Japan's Nikkei tops 40,000, as investors await China political meeting

Asian stocks are mostly higher ahead of China’s top annual political gathering, while Japan’s benchmark surpassed the 40,000 level for the first time.

apnews.com

Another winning week for Wall Street ends with more records​

By STAN CHOE

NEW YORK (AP) — Wall Street closed its latest winning week with more gains Friday, pushing U.S. stocks to new heights.

The S&P 500 rose 40.81 points, or 0.8%, to 5,137.08 a day after setting an all-time high. It’s been on a tremendous run and has climbed in 16 of the last 18 weeks because of excitement about cooling inflation and a mostly resilient U.S. economy.

The Dow Jones Industrial Average gained 90.99, or 0.2%, to 39,087.38. Technology stocks led the market, and the Nasdaq composite jumped 183.02, or 1.1%, to 16,274.94 a day after surpassing its prior record set in 2021.

In the bond market, Treasury yields eased after reports on manufacturing and sentiment among U.S. consumers came in softer than economists expected. They reinforced bets that the Federal Reserve may begin cutting interest rates in June, particularly after a report on Thursday showed a key measure of inflation behaved pretty much as expected last month.

Dell Technologies helped drive the stock market after jumping 31.6%. It reported stronger profit and revenue for the latest quarter than analysts expected, highlighting demand for its AI-optimized servers.

A seemingly never-ending crescendo of demand for artificial-intelligence technology has helped catapult stocks higher over the last year. Dell has more than tripled in the last 12 months, while Nvidia has surged more than 260%.

NetApp leaped 18.2% after reporting stronger results than expected, saying it’s seeing “good momentum in AI.” The data company also gave a forecasted range for profit in the current quarter that topped what several analysts were expecting.

The mood was much more dour in the banking industry, where New York Community Bancorp tumbled 25.9%. It warned investors late Thursday that it found weakness in how it internally reviews loans, caused by ineffective oversight, risk assessment and monitoring activities.

The company said it won’t be able to file its annual report in time, and it took a charge worth $2.4 billion against its results for the last three months of 2023. Its CEO stepped down after 27 years with the company, effective immediately.

Much attention has been on smaller regional banks after last year’s crisis in the industry led to the collapses of several. One of them, Signature Bank, was swallowed up by NYCB, which has caused the resulting bank to face stricter oversight amid struggles for loans tied to real estate.

While NYCB faces many issues that are specific to it, the worry has been that banks across the industry face challenges from loans made for real-estate projects.

They’re under pressure in part because the Federal Reserve has hiked its main interest rate to the highest level since 2001, which can squeeze the financial system. The hope has been that the Fed will cut interest rates several times this year to offer some relief for banks and the broader economy.

The Fed has indicated it may do so if inflation continues to cool decisively toward its 2% target. But a string of stronger reports on the economy than expected have made traders push back forecasts for when the cuts could begin. The hope now is that the Fed could start in June after traders shelved earlier expectations for March.

Hopes for a June cut built after a report showed the U.S. manufacturing industry shrank in February for a 16th straight month. Manufacturing has been one of the weakest-performing areas of the economy, while a resilient job market and spending by U.S. consumers have propped it up. The report from the Institute for Supply Management also said prices paid by manufacturers for raw materials rose again, but at a slower pace than in January.

A separate report from the University of Michigan said sentiment among U.S. consumers was weaker than economists expected. It slipped in February from January but held most of the gains seen in recent months. That’s important because spending by U.S. consumers makes up the bulk of the economy.

In the bond market, Treasury yields sank following the reports. The yield on the 10-year Treasury fell to 4.18% from 4.25% late Thursday and from 4.28% just before the data’s release.

The two-year Treasury yield, which more closely tracks expectations for the Fed, sank to 4.53% from 4.62%.

Economists at Deutsche Bank expect the Fed to cut its main interest rate by 1 percentage point this year, down from its current range of 5.25% to 5.50%. Like many traders, they also expect the Fed to start in June.

But chief U.S. economist Matthew Luzzetti also says there are several reasons to be cautious about cuts. One is that stock prices have already rallied and Treasury yields have already sunk on expectations for coming cuts, which loosens conditions for the economy and could add upward pressure on inflation.

In stock markets abroad, Japan’s Nikkei 225 jumped 1.9%. Indexes rose more modestly across the rest of Asia and Europe.

 

[bigdog]

ASX 200 expected to rise again

The Australian share market looks set to rise on Monday after records were broken on Wall Street on Friday.

According to the latest SPI futures, the ASX 200 is expected to open the day 11 points higher.

On Friday , Wall Street closed its latest winning week with more gains Friday, pushing U.S. stocks to new heights.

The S&P 500 rose 40.81 points, or 0.8%, to 5,137.08 a day after setting an all-time high. It’s been on a tremendous run and has climbed in 16 of the last 18 weeks because of excitement about cooling inflation and a mostly resilient U.S. economy.


Market Watch

 

[bigdog]

Stock market today: Asian shares are mixed as China unveils 5% economic growth target for 2024

Shares are mixed in Asia after China's premier said the country's target for economic growth this year is around 5%, in line with expectations.

apnews.com

Wall Street edges lower at the start of a busy week​

By STAN CHOE
Updated 8:22 AM GMT+11, March 5, 2024

NEW YORK (AP) — U.S. stocks edged down from their record heights in a quiet Monday on Wall Street.

The S&P 500 slipped 6.13 points, or 0.1%, to 5,130.95, coming off its latest all-time high and its 16th winning week in the last 18. The Dow Jones Industrial Average dipped 97.55, or 0.2%, to 38,989.83, and the Nasdaq composite lost 67.43, or 0.4%, to 16,207.51.

Momentum slowed for U.S. stocks following their roar higher on excitement that inflation appears to be cooling, cuts to interest rates may be coming and the U.S. economy has so far shrugged off predictions for a recession. At the same time, a frenzy around artificial-intelligence technology has catapulted some stocks to stratospheric heights.

Super Micro Computer, which sells server and storage systems used in AI and other computing, jumped another 18.6% Monday. It has surged nearly 1,000% in the last 12 months.

It was the first trading for the stock since an announcement that it will join the S&P 500 index of the biggest U.S. stocks in two weeks. Such a move could drive even more investment in the company.

Super Micro Computer will replace Whirlpool, which is on track for a third straight losing year and will fall back to the S&P 400 index of mid-sized stocks. At the same time, Deckers Outdoor will replace Zion Bancorp. in the S&P 500.

The poster child of AI mania is Nvidia, whose chips are powering much of the move into AI. It rose another 3.6% Monday to bring its gain for the year so far to 72.1% after more than tripling in 2023. It was by far the strongest force pushing upward on the S&P 500.

Such spurts are bolstered by a surge in profits and expectations for tremendous growth to continue. But they are also raising worries about another potential bubble as prices whiz at breathtaking speeds.

The market is “euphoric on AI,” according to Savita Subramanian, equity strategist at Bank of America. That can be a concerning signal because too much excitement can push prices too high, leading to disappointment later.

“Bull markets end with euphoria,” Subramanian said in a BofA Global Research report. But the euphoria so far appears to be concentrated in just AI and other select areas, and she raised her target for where the S&P 500 could end this year to 5,400 from 5,000.

Several events scheduled for this week could upset the market.

On Wednesday, the chair of the Federal Reserve will offer testimony before a House of Representatives committee about monetary policy. Wall Street’s hope has been that inflation is cooling enough for the Fed to cut its main interest rate from its highest level since 2001, which would relieve pressure on the economy and financial markets.

Fed Chair Jerome Powell has already said its next move will likely be a cut, but he’s also said the Fed needs additional confirmation that inflation is decisively moving down toward its 2% target. That was before reports recently showed inflation at both the consumer and wholesale levels were higher than expected.

A report on Friday will show how the U.S. job market is doing, with economists forecasting a slowdown from January’s strong growth. Resiliency there has kept the U.S. economy out of recession, which in turn should drive profits for companies and support stock prices.

Too much strength, though, could keep pressure on inflation. That would force forecasts for the first rate cut even further out the calendar. Traders have already mostly given up on hopes for a rate cut in March. They’re now eyeing June.

In the meantime, several retailers will also offer their latest earnings reports this upcoming week. They include Costco Wholesale, Gap and Nordstrom.

Another retailer, Macy’s, jumped 13.5% after two investment firms raised their offer to buy the shares they don’t already own.

Elsewhere on Wall Street, Spirit Airlines lost 10.8%. JetBlue Airways is ending their proposed $3.8 billion combination after a court ruling blocked their merger. JetBlue rose 4.3%.

Apple fell 2.5% after the European Union hit it with a fine of nearly $2 billion for unfairly favoring its own music streaming service over Spotify and other rivals. It was the single heaviest weight on the S&P 500.

Gains were plentiful in other markets. Bitcoin rose above $67,000 to climb closer to its record of nearly $69,000. Gold also rose, setting a record. An ounce for delivery in April settled at $2,126.30.

In the bond market, the yield on the 10-year Treasury rose to 4.21% from 4.18% late Friday.

In stock markets abroad, Japan’s Nikkei 225 added 0.5% and topped the 40,000 level for the first time.

Elsewhere in Asia, the spotlight this week is on China’s National People’s Congress, the country’s most important political event. It opens Tuesday and could offer updates on policies to support the slowing economy, resolve troubles in the property market and stabilize financial markets.

ASX 200 expected to edge lower​

The Australian share market is expected to edge lower on Tuesday following a subdued start to the week on Wall Street.

According to the latest SPI futures, the ASX 200 is poised to open the day 3 points lower.

U.S. stocks edged down from their record heights in a quiet Monday on Wall Street.

The S&P 500 slipped 6.13 points, or 0.1%, to 5,130.95, coming off its latest all-time high and its 16th winning week in the last 18. The Dow Jones Industrial Average dipped 97.55, or 0.2%, to 38,989.83, and the Nasdaq composite lost 67.43, or 0.4%, to 16,207.51.

 

[bigdog]

Stock market today: Asia stocks mixed after Wall Street slumps to worst day in weeks

Asia stocks are mixed after tumbling Big Tech stocks dragged Wall Street to its worst day in three weeks. U.S. futures and oil prices rose.

apnews.com

Wall Street slumps to worst day in weeks; bitcoin touches record before tumbling​

By STAN CHOE

The S&P 500 dropped 1% for its second straight loss after closing last week at an all-time high. The Dow Jones Industrial Average fell 404 points, or 1%, and the Nasdaq composite led the market lower with a 1.7% slide.

Apple’s drop of 2.8% was one of the heaviest weights on the market. It’s been struggling on worries about sluggish iPhone sales in China, where tough competition and a faltering overall economy are challenging it.

Apple is one of several Big Tech stocks that’s bent recently under the weight of much higher expectations after running much higher in price. Since the start of last year, a select group known as the “Magnificent Seven” has been responsible for the vast majority of the S&P 500’s run to all-time highs.

Drops for several of them were among the heaviest wights on the S&P 500 Tuesday. Microsoft fell 3%, Amazon slid 1.9% and Tesla dropped 3.9%.

Piling into tech stocks has become one of the most popular moves on Wall Street among both mutual funds and hedge funds, according to strategists at Barclays Capital. That can raise the risk of sharp drops later when the momentum breaks, particularly with criticism rising that prices have gotten too expensive.

High-growth stocks have generally been rallying for several reasons, including a frenzy around artificial-intelligence technology, but if they “fail to deliver on aggressive expectations, growth investors will likely wind up disappointed,” according to the asset allocation team at GMO, the investment firm co-founded by Jeremy Grantham.

MicroStrategy fell 21.2% after it said it will raise $600 million in debt, which it will use to buy more bitcoin and for “general corporate purposes.”

Bitcoin briefly rose above $69,000 Tuesday, surpassing its record set in 2021, before pulling back below $63,000. It’s been surging in part because of new exchange-traded funds that offer easier access for investors to the cryptocurrency. It roughly tripled over the last 12 months, but it’s notorious for huge swings in both directions that can happen painfully and suddenly.

Target helped limit the market’s losses after climbing 12%. It reported a bigger jump in profit for the end of 2023 than analysts expected as it held the line on some expenses.

New York Community Bancorp also rose 17.9% to trim its loss for the week so far to 9.3%. The bank is under pressure because of losses tied to investments it has related to commercial real estate. It’s also under heavier regulatory scrutiny because of its purchase of much of Signature Bank, one of the banks that fell in last year’s mini-crisis for the industry.

Several analysts still say NYCB’s problems are likely unique to it, more than a signal of coming trouble for banks broadly, particularly after U.S. government efforts last year to bolster the industry. But if interest rates remain high, more pressure could build on the entire industry.

All told, the S&P 500 fell 52.30 points to 5,078.65. The Dow dropped 404.64 to 38,585.19, and the Nasdaq sank 267.92 to 15,939.59.

Hopes for coming cuts to interest rates got a boost after a report showed growth for U.S. construction, health care and other services industries slowed by more last month than economists expected.

Perhaps more importantly for the market, the report also said prices paid by services businesses rose at a slower pace in February than in January. A separate report, meanwhile, said U.S. factory orders weakened by more in January than expected.

Wall Street’s hope has been that the economy will continue plugging along, but not at such a strong pace that it keeps upward pressure on inflation. That’s because traders want the Federal Reserve to cut interest rates this year, something it’s hinted it will do only if inflation cools decisively toward its 2% target.

Following Tuesday’s reports, bets built among traders that the Federal Reserve will begin cutting interest rates in June. The Fed’s main rate is at its highest level since 2001 in hopes of grinding down inflation. Any cuts would relieve pressure on the economy and financial system.

Fed Chair Jerome Powell will give testimony before Congress later this week, which could further sway expectations for when cuts to rates could begin.

In the bond market, the yield on the 10-year Treasury fell to 4.13% from 4.22% late Monday.

In stock markets abroad, Hong Kong’s Hang Seng index sank 2.6%. China’s premier said the country’s target for economic growth this year is around 5%, in line with expectations. But the government’s intention to keep its deficit at 3% the size of China’s overall economy may have disappointed investors hoping for more aggressive action.

Stocks in Shanghai inched up by 0.3%, while indexes were modestly lower across much of the rest of the world.

ASX 200 expected to edge lower​

The Australian share market looks set to edge lower on Wednesday after Wall Street slumps to worst day in weeks.

According to the latest SPI futures, the ASX 200 is expected to open the day 10 points lower.

The S&P 500 dropped 1% for its second straight loss after closing last week at an all-time high. The Dow Jones Industrial Average fell 404 points, or 1%, and the Nasdaq composite led the market lower with a 1.7% slide.

All told, the S&P 500 fell 52.30 points to 5,078.65. The Dow dropped 404.64 to 38,585.19, and the Nasdaq sank 267.92 to 15,939.59.

Apple’s drop of 2.8% was one of the heaviest weights on the market. It’s been struggling on worries about sluggish iPhone sales in China, where tough competition and a faltering overall economy are challenging it.

 

[bigdog]

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

Asian shares were mostly higher in early trading, after Wall Street recovered some losses from the day before.

apnews.com

Wall Street rises to recover some of its losses from its worst day in weeks​

By STAN CHOE

NEW YORK (AP) — Stocks recovered some of their losses from the day before, which was Wall Street’s worst in three weeks. The S&P 500 rose 0.5% Wednesday. The Dow added 0.2%, and the Nasdaq climbed 0.6%. Treasury yields edged lower after Federal Reserve Chair Jerome Powell said again that cuts to interest rates may be coming later this year. Powell also said the Fed needs more data showing inflation is cooling before it will act. New York Community Bancorp rose after the troubled bank announced a $1 billion cash infusion, a new CEO and four new directors, including former Treasury Secretary Steven Mnuchin.

U.S. stocks are rising Wednesday and recovering some of their losses from the day before, which was Wall Street’s worst in three weeks.

The S&P 500 was 0.4% higher in afternoon trading, a day after sharp drops for many Big Tech stocks dragged it 1% lower. The Dow Jones Industrial Average was up 29 points, or 0.1%, as of 3:20 p.m. Eastern time, and the Nasdaq composite was 0.5% higher.

CrowdStrike jumped 9.9% after the cybersecurity company reported stronger profit for the latest quarter than analysts expected. It also gave a forecast for upcoming profit that topped Wall Street’s estimates.

Nvidia was the strongest force pushing upward on the S&P 500 as it rose 3%. Meta Platforms also steadied itself and rose 1.3% a day after sliding 1.6%. They’re among the market’s most influential stocks because of their massive size.

They and other Big Tech stocks have also been disproportionately responsible for the S&P 500’s run to records on expectations for strong continued growth. That’s raised the bar of expectations for them to justify their high stock prices, leading to some painful drops earlier this week.

Shares of the troubled New York Community Bancorp bounced around after it announced a lifeline of more than $1 billion from a group of investors, including Steven Mnuchin, the former U.S. Treasury secretary under President Donald Trump. The stock was up 9.3%. It plunged 42.2% earlier in trading before being halted for news. The regional bank has lost 65% of its value this year amid falling values in commercial real estate and acquisitions it made.

An index of regional bank stocks quickly reversed its losses following the announcement. The KBW Nasdaq Regional Banking index was mostly unchanged after being down as much as 3.1% earlier in the afternoon.

In the bond market, Treasury yields edged lower as Federal Reserve Chair Jerome Powell spoke about interest-rate policy before a House of Representatives committee.

As always, Wall Street scrutinized each of his words for hints about when the Federal Reserve could begin cutting its main interest rate, which is at its highest level since 2001. Such a move would release pressure on the financial system and goose prices for investments.

Powell said again that high interest rates are putting downward pressure on the economy to get inflation under control and that the next move is likely to be a cut later this year. But he also said, again, that the Fed needs greater confidence inflation is moving sustainably toward its target of 2% before acting. Cutting too soon could allow inflation to reaccelerate.

“We have some confidence of that,” Powell said about inflation moving down toward its target.

“We want to see a little more data so we can become more confident.”

Traders have already shelved earlier expectations for a cut in March, and they’re now eyeing June as the likeliest beginning.

A report in the morning did little to change those expectations. It said U.S. employers were advertising nearly 8.9 million jobs at the end of January, close to the same number as a month before.

Wall Street’s hope has been for continued but more modest growth in job openings. Such a slowdown could help the economy thread the needle and stay out of recession while also removing upward pressure on inflation. That in turn could get the Federal Reserve to cut rates.

The job-openings data likely changed little and support the Fed’s current stance, “which is one of patience on future policy decisions,” according to Rubeela Farooqi, chief U.S. economist at High Frequency Economics.

The Fed’s latest report on U.S. business and economic conditions said economic activity increased slightly since early January. The “Beige Book” released Wednesday also said that the Fed’s 12 regional bank districts are seeing the tight labor market ease a bit.

Foot Locker tumbled 31% even though it reported stronger profit for the latest quarter than analysts expected. The sneaker retailer said it’s not yet resuming its dividend as it rebuilds cash. It also gave a forecast for upcoming profit that fell short of analysts’ expectations.

Nordstrom likewise fell even though its report for the latest quarter topped forecasts. It sank 16.2% after giving a forecasted range for profit this upcoming year whose midpoint was below analysts’ estimates.

In the bond market, the yield on the 10-year Treasury slipped to 4.11% from 4.14% late Tuesday.

In stock markets abroad, indexes were mixed with mostly modest moves across Europe and Asia.

Hong Kong’s Hang Seng jumped 1.7% to trim its loss for the week. In China, top officials said they have plenty of room to attain their target for economic growth this year, though they acknowledged it’s a challenge.

ASX 200 expected to rise​

The Australian share market looks for a positive session on Thursday following a rebound on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 37 points or 0.4% higher this morning.
U.S. stocks are rising Wednesday and recovering some of their losses from the day before, which was Wall Street’s worst in three weeks.

The S&P 500 was 0.4% higher in afternoon trading, a day after sharp drops for many Big Tech stocks dragged it 1% lower. The Dow Jones Industrial Average was up 29 points, or 0.1%, as of 3:20 p.m. Eastern time, and the Nasdaq composite was 0.5% higher.

 

[bigdog]

Stock market today: Asian shares rise after Wall Street sets another record

Asian shares are mostly higher after U.S. stocks climbed to records, with easier interest rates beckoning on the horizon.

apnews.com

Wall Street sets another record as traders look ahead to easier rates​

By STAN CHOE

NEW YORK (AP) — U.S. stocks climbed to records Thursday, with easier interest rates beckoning on the horizon.

The S&P 500 rallied 1% to set its 16th all-time high so far this year. It’s been on a terrific run and is on track for its 17th winning week in the last 19 after erasing the last of its losses from Monday and Tuesday.

The Dow Jones Industrial Average added 130 points, or 0.3%, and the Nasdaq composite jumped 1.5% to finish just shy of its record.

Federal Reserve Chair Jerome Powell said in testimony on Capitol Hill that the central bank is “not far” from delivering the cuts to interest rates that Wall Street craves so much. He said again that the Fed is just waiting for additional data to confirm inflation is cooling.

It’s a key point on Wall Street because cuts to rates would release pressure on the economy and the financial system, while goosing investment prices. After shelving earlier hopes for cuts to begin in March, traders now see June as the likeliest starting point. The Fed’s main interest rate is at its highest level since 2001.

After getting criticism for waiting too long before raising interest rates when inflation was accelerating, Powell faced questions from the Senate’s banking committee about the possibility that it could be too late in cutting rates. That would cause undue pain because high rates slow the economy.

“We’re well aware of that risk, of course,” Powell said.

He said if conditions continue as expected, including a strong job market and cooling inflation, cuts will come later this year. Cutting rates too early could risk a reacceleration of inflation.

Treasury yields eased in the bond market after a couple reports gave potential signals of lessened pressure on inflation.

The yield on the 10-year Treasury dipped to 4.08% from 4.11% late Wednesday. It’s been generally falling since topping 5% last autumn, which can encourage borrowing across the economy and investors to pay higher prices for stocks. The two-year Treasury yield, which moves more closely with expectations for the Fed, fell by more.

Across the Atlantic, traders were also trying to guess when the European Central Bank will begin cutting interest rates after its president said it’s making progress on getting inflation under control.

One report said slightly more U.S. workers applied for unemployment benefits last week than expected, though the number remains low relative to history.

A separate report said U.S. workers were able to produce more stuff per hour during the last three months of 2023 than expected. Such improvement is key because it can allow the economy to grow without adding as much upward pressure on inflation.

A potentially more impactful report will arrive Friday morning, when the U.S. government will give its latest monthly update on the job market. The hope among traders is that the job market remains healthy but not so much that it deters the Federal Reserve from cutting interest rates.

On Wall Street, Kroger jumped 9.9% for the biggest gain in the S&P 500 after it reported stronger-than-expected profit for the end of 2023. It also gave a forecast range for profit in the upcoming year whose midpoint was above analysts’ estimates.

Nvidia was again the strongest force lifting the S&P 500 upward and climbed 4.5%. It’s been on a nearly unstoppable run and has soared 87% this year after more than tripling last year amid Wall Street’s frenzy around artificial-intelligence technology.

Victoria’s Secret was on the losing end even after it reported stronger profit for the latest quarter than expected. It said it expects overall sales to fall this upcoming year, when analysts were looking for modest growth. It tumbled 29.7%.

Shares of embattled New York Community Bancorp climbed 5.8% a day after going on a wild ride. The bank, which is confronting weakness in commercial real estate and growing pains resulting from its buyout of a distressed bank, announced a lifeline of more than $1 billion from a group of investors on Wednesday.

The bank is also cutting its dividend again, down to a penny from 5 cents. A prior cut to its dividend earlier this year, along with a surprise loss reported for its latest quarter, drove much of the fear around NYCB. The bank also said it has $77.2 billion in total deposits, down from $83 billion roughly a month ago.

Analysts are still saying NYCB’s problems are mostly specific to it, rather than a warning of impending doom for the broader industry, but stocks of other regional banks have been skittish. The KBW Nasdaq Regional Banking index edged up by 0.1%.

All told, the S&P 500 rose 52.60 points to 5,157.36. The Dow gained 130.30 to 38,791.35, and the Nasdaq composite climbed 241.83 to 16,273.38.

In stock markets abroad, indexes rose in Europe after the European Central Bank left its main interest rate alone. Japan’s Nikkei 225 index briefly reached a record before falling to a loss of 1.2%.

ASX 200 expected to rise​

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

According to the latest SPI futures, the ASX 200 is expected to open 45 points or 0.6% higher this morning.

U.S. stocks climbed to records Thursday, with easier interest rates beckoning on the horizon.

The S&P 500 rallied 1% to set its 16th all-time high so far this year. It’s been on a terrific run and is on track for its 17th winning week in the last 19 after erasing the last of its losses from Monday and Tuesday.

The Dow Jones Industrial Average added 130 points, or 0.3%, and the Nasdaq composite jumped 1.5% to finish just shy of its record.

All told, the S&P 500 rose 52.60 points to 5,157.36. The Dow gained 130.30 to 38,791.35, and the Nasdaq composite climbed 241.83 to 16,273.38.

 

[bigdog]

Stock market today: Asian shares are mixed after Wall St pulls back after a shaky day

Asian shares are mixed after Wall Street pulled back from its record following a shaky day of trading, putting at least a temporary halt to its huge rally since Halloween.

apnews.com

Wall Street pulls back from its record after a shaky day​

By STAN CHOE

NEW YORK (AP) — Wall Street pulled back from its record Friday after a shaky day of trading, putting at least a temporary halt to its huge rally since Halloween.

The S&P 500 fell 0.7% from its all-time high set a day before. It initially climbed after mixed data on the U.S. job market bolstered hopes that easier interest rates will arrive later this year. Later, it swung to a loss after one of its most influential stocks, Nvidia, took a rare stumble following a jaw-dropping surge that critics called overdone.

Friday’s dip also sent the S&P 500 to a rare losing week, just its third in the last 19.

The weakness for Nvidia and other technology stocks dragged the Nasdaq composite to a market-leading loss of 1.2%. The Dow Jones Industrial Average, which has less of an emphasis on tech, held up better. It slipped 68 points, or 0.2%.

In the bond market, Treasury yields eased following the mixed data on the U.S. job market, which economists described as “all over the place.” The jobs report showed employers hired more workers last month than expected, but wages for workers rose by less than forecast. It also said job growth in January was not nearly as hot as earlier thought.

The job market and overall economy are in a delicate spot, where Wall Street wants them to continue growing, but not so much that they raise pressure on inflation.

The ultimate goal is for inflation to cool enough to convince the Federal Reserve to lower its main interest rate from its highest level since 2001. Such a move would release pressure on the financial system and the economy, which has so far remained out of a recession despite high interest rates.

“Big picture: these were helpful numbers for the Fed to gain confidence,” said Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management.

Following the report, traders’ bets remained on June as the likeliest starting point for the Fed’s rate cuts. The yield on the two-year Treasury, which follows expectations for the Fed, dipped to 4.48% from 4.51% late Thursday.


Wall Street loves lower interest rates because they encourage people and companies to borrow, which can strengthen the economy, and because they boost prices for stocks and other investments.

“Things are good, but not great, and they’re getting a touch worse,” Brian Jacobsen, chief economist at Annex Wealth Management, said about the jobs report. “The payroll gains are still fantastic, but we’re not as strong as we thought we were with the prior months’ numbers being revised down.”

Fed Chair Jerome Powell said a day earlier that the central bank is “not far” from cutting interest rates. He said it just needs additional data confirming that inflation is heading sustainably down to its 2% target.

In the meantime, the hope on Wall Street is that the remarkably resilient economy will drive growth in profits for companies.

Gap climbed 8.2% after the retailer reported stronger profit and revenue for the latest quarter than analysts expected. The retailer said an important sales trend returned to growth at both its Old Navy and Gap stores. The owner of Banana Republic and Athleta also gave a forecast for upcoming sales this year that was a touch higher than analysts’ estimates.

Gun maker Smith & Wesson Brands leaped 29.4% after likewise reporting stronger profit than expected for the latest quarter. It said its shipments grew faster than the overall firearms market.

But Nvidia was the main stock in the spotlight as it tumbled 5.5% for its worst day since May. It’s a rare blip for the stock that has shot up nearly 77% this year after more than tripling last year.

Because Nvidia has swelled into the third-largest U.S. stock, it carries much more weight on the S&P 500 than nearly every other. That buoyed Wall Street on the way up but leaves it vulnerable to pullbacks, particularly when critics say stocks caught up in the market’s frenzy around artificial intelligence have shot up too far, too fast.

Also on the losing end was Broadcom, which fell even though it reported stronger results than expected. It dropped 7% after giving a forecast for revenue this upcoming year that was a touch below analysts’ expectations.

Costco Wholesale sank 7.6% after its revenue for the latest quarter fell shy of forecasts.

All told, the S&P 500 fell 33.67 points to 5,123.69. The Dow dropped 68.66 to 38.722.69, and the Nasdaq slid 188.26 to 16,085.11.

In stock markets abroad, indexes were mixed in Europe and rose modestly across much of Asia. South Korea was a standout as the Kospi jumped 1.2%.

 

[bigdog]

Stock market today: Asian shares are mostly higher ahead of a US report on inflation

Shares are mostly higher in Asia ahead of a report on inflation in the U.S. that could sway the Federal Reserve's timing on cutting interest rates.

apnews.com

Wall Street stays stuck in neutral ahead of a looming inflation report​

By STAN CHOE

NEW YORK (AP) — U.S. stock indexes held roughly in place Monday ahead of an inflation report that could show how realistic Wall Street’s hopes for easier interest rates are.

The S&P 500 slipped 5.75 points, or 0.1%, to 5,117.94, coming off just its third losing week in the last 19. It’s still near its all-time high set Thursday, buoyed by expectations that cuts to interest rates are coming this year and by signals that the economy remains remarkably resilient.

The Dow Jones Industrial Average rose 46.97, or 0.1%, to 38,769.66, and the Nasdaq composite fell 65.84 or 0.4%, to 16,019.27.

Tuesday’s report on prices at the consumer level could show inflation remained at 3.1% in February, if economists’ forecasts are correct.

A month ago, a hotter-than-expected report on inflation at the consumer level sent financial markets spinning after scrambling bets for when the Federal Reserve will start cutting rates. Stocks have already run higher and Treasury yields have already eased in the bond market on expectations that such cuts are coming.

But the trend for inflation has been mostly downward, cooling toward the Fed’s 2% target from its peak above 9%. Fed Chair Jerome Powell Jerome Powell said last week the Fed is “not far” from getting enough confidence about inflation to begin cutting rates. Cuts to the Fed’s main interest rate, which is at its highest level since 2001, would relax pressure on the economy and financial system, while goosing investment prices.

The general expectation among traders is that the Fed will begin cutting rates in June.

It’s such expectations that have helped drive the U.S. stock market’s big run since late October, according to Michael Wilson and other strategists at Morgan Stanley. From here, though, “the burden is now likely on earnings/fundamentals to show more material improvement” for the rally to continue.

This most recent earnings reporting season has mostly wrapped up, but Archer Daniels Midland and Ulta Beauty are among the S&P 500 companies reporting later this week.

Expectations for easier interest rates have helped the price of gold rally to a record. When bonds pay less in interest, investors lose out on less income by owning gold instead. Gold for delivery in April ticked up by $3.10 to settle at $2,188.60 per ounce. Gold prices are up about 17% over the last 12 months.

Bitcoin, which proponents sometimes pitch as “digital gold,” also rallied to another record. It rose above $72,000 after sitting below $17,000 at the start of last year. It’s more than bounced back from its prior prior peak of nearly $69,000.

On Wall Street, Oracle rose 1.5% before it released its latest earnings report after trading finished for the day. Its profit topped analysts’ expectations, and its stock rose more in afterhours trading.

On the losing end was natural-gas producer EQT, which sank 7.8% for the biggest drop in the S&P 500. It said it will buy Equitrans Midstream and its gas transmission and storage systems in an all-stock deal that values the combined company at $35 billion. Equitrans Midstream rose 1.5%.

Nvidia swung through a shaky day after coming off a 5.5% drop on Friday, which was its worst day since May. Nvidia is still up more than 70% this year after more than tripling last year amid a frenzy on Wall Street around artificial-intelligence technology.

The rally has caused Nvidia to swell in size, and it’s become the third-largest stock on Wall Street. That gives its stock movements outsized sway on the S&P 500, and it’s been getting criticism that its stock ran too high, too fast. After flipping earlier between losses and gains, Nvidia’s stock dropped 2% to act as one of the heaviest weights on the S&P 500.

Reddit said it may raise up to $748 million through the sale of stock to investors on an exchange for the first time. The social media company expects its stock to trade under the “RDDT” ticker symbol.

In the bond market, yields edged higher. The yield on the 10-year Treasury rose to 4.09% from 4.08% late Friday.

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

Japan’s Nikkei 225 tumbled 2.2%. The government there said its economy may have actually grown slightly in the last three months of 2023, better than the contraction it had earlier said. That would mean its economy is not in a recession.

The Nikkei 225 has been setting records recently after surpassing its peak from 1989, boosted in part by extremely easy interest rates and other policies meant to support Japan’s economy.

Chinese stocks rose, with indexes climbing 0.7% in Shanghai and 1.4% in Hong Kong. China’s National People’s Congress concluded with a near unanimous show of support for the decisions set by top leaders of the ruling Communist Party.

ASX 200 expected to edge higher​

The Australian share market is expected to edge higher on Tuesday following a mixed start to the week on Wall Street.

According to the latest SPI futures, the ASX 200 is poised to open the day 5 points higher.
U.S. stock indexes held roughly in place Monday ahead of an inflation report that could show how realistic Wall Street’s hopes for easier interest rates are.

The S&P 500 slipped 5.75 points, or 0.1%, to 5,117.94, coming off just its third losing week in the last 19. It’s still near its all-time high set Thursday, buoyed by expectations that cuts to interest rates are coming this year and by signals that the economy remains remarkably resilient.

The Dow Jones Industrial Average rose 46.97, or 0.1%, to 38,769.66, and the Nasdaq composite fell 65.84 or 0.4%, to 16,019.27.

 

[bigdog]

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

Asian shares are mostly rising, encouraged by a record rally on Wall Street that was led by technology companies.

apnews.com

Wall Street rallies to a record as Big Tech stocks renew their run​

By STAN CHOE

NEW YORK (AP) — U.S. stocks rallied to records Tuesday, led again by technology companies, as some of Wall Street’s most influential got back in their groove.

The S&P 500 jumped 1.1% to top its all-time high set last week. The Dow Jones Industrial Average climbed 235 points, or 0.6%, and the Nasdaq composite jumped 1.5%.

All three indexes began the day with losses after a highly anticipated report on inflation said U.S. consumers paid prices that were a bit higher last month than economists expected. The worse-than-expected data kept the door closed on hopes that the Federal Reserve could deliver long-sought cuts to interest rates at its meeting next week.

But the inflation figures were still close to expectations, and traders held onto hopes that the longer-term trend downward means the Fed will begin the hoped-for cuts in June. That helped stock indexes to reverse their losses as the day progressed.

Plus, inflation may not be as hot in reality as the morning’s report suggested.

“January and February are notoriously noisy months for a lot of economic data,” said Brian Jacobsen, chief economist at Annex Wealth Management.

“The Fed wasn’t planning on cutting rates next week, and this report doesn’t change that. The discussion around the table will be more about the longer-term trend.”

The fear is “sticky” inflation that refuses to go down will force the Fed to keep interest rates high, which grinds down on the economy and investment prices. The Fed’s main interest rate is already at its highest level since 2001.

“Another hotter-than-expected CPI reading may breathe new life into the sticky inflation narrative, but whether it actually delays rate cuts is a different story,” said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.

For months, traders on Wall Street have been trying to get ahead of the Federal Reserve and guess when cuts to rates will arrive. They have already sent stock prices higher and bond yields lower in anticipation of it.

Through it all, the Fed has remained “nothing if not consistent in doing what it said it would do,” Larkin said. “Until they say otherwise, their plan is to cut rates in the second half of the year.”

The immediate reaction across financial markets to the inflation data was nevertheless halting and uncertain.

In the bond market, Treasury yields initially dropped and then swung higher. The yield on the 10-year Treasury eventually rose to 4.15% from 4.10% late Monday.

The price of gold, which has shot to records on expectations for coming rate cuts, also swung. An ounce for delivery in April ended up falling $22.50 to settle at $2,166.10. A measure of nervousness among U.S. stock investors, meanwhile, eased more than 8% after squiggling up and down a few times.

On Wall Street, big technology stocks did much of the market’s heaviest lifting. Oracle jumped 11.7% after reporting stronger profit for the latest quarter than analysts expected.

Nvidia also rallied 7.2% to bounce back from a rare two-day stumble. A frenzy on Wall Street around artificial-intelligence technology has caused its stock to swell in size, making it one of the most influential on the market. It was the single strongest force pushing the S&P 500 upward on Tuesday.

New York Community Bancorp rose 5.8% after it said it closed its previously announced deal to raise roughly $1.05 billion in cash from the sale of stock. The bank has been struggling under the weight of falling prices for commercial real estate and the growing pains associated with prior acquisitions it made. Its troubles have also led to worries about the broader regional banking industry.

3M climbed 5% after it said Bill Brown, the former chairman and CEO of L3Harris Technologies, will take over as its CEO at the start of May.

On the losing end of Wall Street was Southwest Airlines. It dropped 14.9% after cutting its forecast for an important measure of revenue in the first three months of this year, partially because of lower-than-expected flying by some leisure travelers.

It also said Boeing told the company that it will deliver fewer airplanes than expected this year. Shares of Boeing, which is facing criticism over its safety and manufacturing quality, sank 4.3%.

All told, the S&P rose 57.33 points to 5,175.27. The Dow climbed 235.83 to 39,005.49, and the Nasdaq gained 246.36 to 16,256.64.

In stock markets abroad, Japan’s Nikkei 225 slipped 0.1% to retreat further from its recent records. Expectations are building that its central bank will raise interest rates, which are below zero.

Indexes jumped 3.1% in Hong Kong, 1.2% in Frankfurt and 1% in London but moved more modestly elsewhere across Asia and Europe.

ASX 200 expected to edge higher​

The Australian share market looks set to rise again on Wednesday following a very positive session in the United States.

According to the latest SPI futures, the ASX 200 is expected to open the day 14 points or 0.2% higher.

U.S. stocks rallied to records Tuesday, led again by technology companies, as some of Wall Street’s most influential got back in their groove.

The S&P 500 jumped 1.1% to top its all-time high set last week. The Dow Jones Industrial Average climbed 235 points, or 0.6%, and the Nasdaq composite jumped 1.5%.

All told, the S&P rose 57.33 points to 5,175.27. The Dow climbed 235.83 to 39,005.49, and the Nasdaq gained 246.36 to 16,256.64.

 

[divs4ever]

The great paradox of the U.S. market!​

The great paradox of the U.S. market!

Prices reflect near perfection yet today’s world is particularly imperfect and dangerous

www.livewiremarkets.com

 

[bigdog]

Stock market today: Asian shares mostly decline after Wall Street drifts to a mixed close

Asian shares are mostly declining in lackluster trading after U.S. stocks drifted to a mixed finish.

apnews.com

Wall Street drifts to a mixed close, holding near record levels​

By STAN CHOE

NEW YORK (AP) — U.S. stocks drifted to a mixed finish Wednesday, as a lull carried through financial markets worldwide.

The S&P 500 slipped 9.96 points, or 0.2%, from its all-time high set a day before to 5,165.31. The Dow Jones Industrial Average rose 37.83, or 0.1%, to 39,043.32 and pulled within 90 points of its record set last month. The Nasdaq composite dipped 87.87, or 0.5%, to 16,177.77.

The bond market was also relatively quiet, with Treasury yields ticking higher, while stock markets abroad were mixed after making mostly modest moves.

The biggest action may have been in the oil market, where a barrel of benchmark U.S. crude climbed $2.16 to settle at $79.72. Brent crude, the international standard, rose $2.11 to $84.03 per barrel.

Oil prices have been on a general upswing so far this year, which has helped keep inflation a bit higher than economists expected. That higher inflation has in turn dashed Wall Street’s hopes that the Federal Reserve could start offering relief at its meeting next week by cutting interest rates.

But the expectation is still for the Fed to begin cutting rates in June because the longer-term trend for inflation seems to remain downward. The Fed’s main interest rate is at its highest level since 2001, and reductions would release pressure on the economy and financial system. Stocks have already rallied in part on expectations for such cuts.

Their nearly nonstop run since late October, though, has raised criticism that it was overdone. The U.S. stock market was recently looking more expensive than it has in 99% of its history by a measure that looks at prices versus long-term earnings for companies, according to Jeremy Grantham, co-founder of GMO.

The famed investor, who has a reputation for being cautious but also correctly predicted the popping of prior bubbles, says the long-run prospects for the broad U.S. market “look as poor as almost any other time in history.”

“The simple rule is you can’t get blood out of a stone,” he wrote in a recent report. “If you double the price of an asset, you halve its future return.”

On Wall Street, where the S&P 500 has jumped 44% since hitting a bottom in 2022, Dollar Tree tumbled 14.2% after reporting weaker results for the latest quarter than analysts expected.

Traffic increased at its stores, but it said customers bought less at each purchase than they did a year ago. The company also said it will close about 600 of its Family Dollar stores in the six months through early August.

On the winning side of Wall Street was Williams-Sonoma, which jumped 17.8%. The company, which also runs Pottery Barn and West Elm stores, increased its dividend 26% and announced a new authorization to buy back up to $1 billion of its stock. It also delivered a stronger profit for its latest quarter than analysts expected, despite the drag of a slower housing market.

Stocks of energy producers were also strong, benefiting from the rise in oil prices. Those in the S&P 500 rose 1.5% for the biggest gain among the 11 sectors that make up the index.

Valero Energy climbed 5.2%, and Marathon Petroleum added 3.1%. A 1.1% rise for Exxon Mobil was one of the stronger forces pushing upward on the S&P 500.

A majority of stocks in the S&P 500 ended up rising, but the index was weighed down by losses from some Big Tech behemoths and other influential members. Nvidia slipped 1.1% and was one of the strongest forces pulling the S&P 500 lower.

In the bond market, the yield on the 10-year Treasury rose to 4.18% from 4.15% late Tuesday. It helps set rates for mortgages and loans for all kinds of companies and other borrowers.

The two-year Treasury yield also climbed. It more closely follows expectations for the Fed, and it rose to 4.62% from 4.58% late Tuesday and from 4.20% at the start of February. It had earlier dropped on strong expectations for coming cuts to interest rates by the Fed.

In stock markets abroad, indexes made mostly modest moves across Europe and Asia. Stocks rose 0.6% in Paris and 0.4% in Seoul but slipped 0.4% in Shanghai.

ASX 200 expected to rise again​

The Australian share market looks for a positive session on Thursday despite a mixed night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 23 points or 0.3% higher this morning.

Wall Street drifts to a mixed close, holding near record levels

U.S. stocks drifted to a mixed finish Wednesday, as a lull carried through financial markets worldwide.

The S&P 500 slipped 9.96 points, or 0.2%, from its all-time high set a day before to 5,165.31. The Dow Jones Industrial Average rose 37.83, or 0.1%, to 39,043.32 and pulled within 90 points of its record set last month. The Nasdaq composite dipped 87.87, or 0.5%, to 16,177.77.

 

[bigdog]

Stock market today: Asian markets retreat after data dash hopes that a US rate cut is imminent

Asian markets have retreated after a mixed batch of data on the U.S. economy dashed hopes that easier interest rates are coming soon. Hong Kong's benchmark fell 2%.

apnews.com

Wall Street slips after another report on inflation that was worse than expected​

By STAN CHOE

NEW YORK (AP) — U.S. stocks slipped Thursday after a mixed batch of economic data seemed to drive the final nail into hopes that easier interest rates may arrive very soon.

The S&P 500 fell 14.83 points, or 0.3%, to 5,150.48, though it’s still close to its all-time high set Tuesday. The Dow Jones Industrial Average sank 137.66, or 0.4%, to 38,905.66, and the Nasdaq composite lost 49.24, or 0.3%, to 16,128.53.

The moves were more decisive in the bond market, where Treasury yields rose after a report showed inflation was a touch hotter at the wholesale level last month than economists expected. It’s the latest in a string of data on inflation that’s been worse than forecast, which has kept the door closed on earlier hopes that the Federal Reserve could start cutting interest rates at its meeting next week.

But other reports released Thursday also showed some softening in the economy, which kept alive hopes that the long-term trend for inflation remains downward.

Traders still see largely expect the Fed to begin cutting rates in June, according to data from CME Group. The Fed’s main rate is at its highest level since 2001 in hopes of grinding down inflation, and cuts would relieve pressure on the economy and financial system.

The question hanging over Wall Street is how much the latest signals of potentially stubborn inflation will ultimately delay rate cuts. That in turn could damage the huge run U.S. stocks have been on since late October, rising in 16 of the last 19 weeks.

Traders on Thursday pushed some bets for the first cut to interest rates into July from June.

The day’s mix of data could push the Federal Reserve to signal it foresees only two cuts to rates this year, down from three, according to Brian Jacobsen, chief economist at Annex Wealth Management.

Fed officials will give their latest forecasts for where they see interest rates heading this year on Wednesday, following their latest policy meeting.

Among the data they’ll mull is a report from Thursday that said shoppers spent less at U.S. retailers last month than economists expected. Such data drags on the overall economy but could also remove upward pressure on inflation.

The government also said retail sales were weaker in January than earlier thought. Strong spending by U.S. households has been one of the linchpins keeping the economy out of a recession despite high interest rates.

A separate report said fewer U.S. workers applied for unemployment benefits last week than expected. That’s good news for workers generally. But too much strength in the job market, which has remained remarkably resilient, could add upward pressure on inflation.

The mix of data sent the yield on the 10-year Treasury up to 4.28% from 4.19% late Wednesday. The two-year yield, which more closely tracks expectations for the Fed, rose to 4.69% from 4.63%.

On Wall Street, Dollar General swung sharply despite reporting stronger profit and revenue for the latest quarter than expected. Its stock fell 5.1% after being up more than 6% earlier.

Dollar General executives said inflation is pushing customers to make trade-offs in the aisles, away from non-essentials and name brands. It’s also removing self-checkout from more than 300 of its stores that are experiencing high losses of inventories.

A day earlier, rival Dollar Tree tumbled after reporting weaker-than-expected results and saying it would close hundreds of its Family Dollar stores.

Dick’s Sporting Goods jumped 15.5% after it reported stronger profit for the latest quarter than expected and increased its dividend.

Robinhood Markets gained 5.2% as near-record stock and crypto prices drove strong growth in trading activity among its customers last month.

U.S. Steel sank 6.4% after President Joe Biden came out in opposition of the planned sale of the company to Nippon Steel of Japan.

Nippon Steel announced in December that it planned to buy the Pittsburgh-based steel producer for $14.1 billion in cash, raising concerns about what the transaction could mean for unionized workers, supply chains and U.S. national security.

Shares of Anheuser-Busch InBev trading in the United States slumped 5.5% after Altria said it was selling a portion of its stake in the maker of Budweiser.

Homebuilder Lennar sank 7.6% despite reporting stronger growth in profit than expected, as its revenue fell short of analysts’ forecasts.

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

Japan’s Nikkei 225 rose 0.3%, as speculation rose that the Bank of Japan may soon end its policy to keep interest rates below zero.

ASX 200 poised to sink​

The Australian share market looks set to end the week deep in the red following a poor night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open 56 points or 0.7% lower this morning.

U.S. stocks slipped Thursday after a mixed batch of economic data seemed to drive the final nail into hopes that easier interest rates may arrive very soon.

The S&P 500 fell 14.83 points, or 0.3%, to 5,150.48, though it’s still close to its all-time high set Tuesday. The Dow Jones Industrial Average sank 137.66, or 0.4%, to 38,905.66, and the Nasdaq composite lost 49.24, or 0.3%, to 16,128.53.

 

[bigdog]

Stock market today: Wall Street slips further away from records amid inflation worries

Stocks retreated from a record high set earlier this week on Wall Street. The S&P 500 fell 0.6% Friday.

apnews.com

Wall Street slips further away from records amid inflation worries​

By DAMIAN J. TROISE

Wall Street closed out its second straight losing week Friday, giving back some of the gains that helped push the stock market to an all-time high earlier in the week.

The S&P 500 fell 0.6%, its third straight loss. The benchmark index hit a record high on Tuesday, but mostly wavered in the days that followed.

The Dow Jones Industrial Average fell 0.5%, while the Nasdaq composite ended 1% lower.

Technology stocks were the biggest weights on the market. Software maker Adobe slumped 13.7% after giving investors a weak revenue forecast. Microsoft fell 2.1% and Broadcom lost 2.1%.

Communication services stocks also helped pull the market lower. Meta Platforms fell 1.6% and Google parent Alphabet fell 1.3%.

All told, the S&P 500 fell 33.39 points to 5,117.09. The Dow dropped 190.89 points to 38,714.77, and the Nasdaq gave up 155.36 points to 15,973.17.

The latest pullback for stocks came as traders reviewed several reports showing that inflation, though broadly cooling, remains stubborn.

A closely-watched report from the University of Michigan showed that consumer sentiment unexpectedly fell in March. Consumers became slightly less optimistic about the economy, but continue to expect inflation to come down further, a potential sign that consumer prices will come under control.

Inflation remains the big concern for Wall Street amid hopes for the Federal Reserve to start cutting interest rates. The Fed sharply raised interest rates starting in 2022 in an effort to tame inflation back to its 2% target. Inflation at the consumer level was as high as 9.1% in 2022.

A report on consumer prices this week showed inflation remains stubborn, ticking up to 3.2% in February from 3.1% in January. Another report on prices at the wholesale level also showed inflation remains hotter than Wall Street expected.

Other reports this week showed some softening in the economy, which bolstered hopes for a continued long-term easing of inflation.

A rally for stocks that started in October has essentially stalled in March as investors try to determine the path ahead for inflation, the Fed and the economy.

“You can kind of look in either direction and find a find a reason to be concerned about equities,” said Brian Nick, senior investment strategist at The Macro Institute.

Investors still have to worry about the lagging impact on the economy from the Fed’s historic rate hikes, he said. The broader economy remains strong, but it is showing signs of slowing and that could mean a recession is still possible.

“Things happen more slowly than investors have come to process,” he said. “Policy lag exerting a downward pull is a lot longer than what investors have priced in.”

Fed officials will give their latest forecasts for where they see interest rates heading this year on Wednesday, following their latest policy meeting. Traders are still leaning toward a rate cut in June, according to data from CME Group. The Fed’s main rate remains at its highest level since 2001.

The central bank has held the benchmark rate steady since July 2023 and has previously signaled that it expects three rate cuts in 2024. Lower rates would relieve pressure on the economy and financial system.

Bond yields edged higher. The yield on the 10-year Treasury rose to 4.31% from 4.29% late Thursday. The yield on the 2-year Treasury, rose 4.73% from 4.69%.

Weak financial forecasts weighed down several companies. Beauty products retailer Ulta Beauty fell 5.2% after giving investors a disappointing earnings forecast for the year. Electronics maker Jabil slumped 16.5% after trimming its revenue forecast for the year.

Markets in Europe ended mixed, while markets in Asia slipped.

 

[bigdog]

ASX 200 expected to fall again​

The Australian share market looks set to fall again on Monday following a poor finish to the week on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 13 points lower.

On Friday, Wall Street closed out its second straight losing week Friday, giving back some of the gains that helped push the stock market to an all-time high earlier in the week.

The S&P 500 fell 0.6%, its third straight loss. The benchmark index hit a record high on Tuesday, but mostly wavered in the days that followed.

The Dow Jones Industrial Average fell 0.5%, while the Nasdaq composite ended 1% lower.


Market Watch