NYSE Dow Jones finished today at:

[bigdog]

Stock market today: Asian stocks follow Wall St tumble. Most markets in the region close for holiday

Asian stocks fall with most of the markets in the region closed for a holiday after U.S. stocks closed out their worst month since September.

apnews.com

Wall Street’s ugly April gets even worse as it tumbles across the finish line​

By STAN CHOE
Updated 7:13 AM GMT+10, May 1, 2024

NEW YORK (AP) — More worries about inflation and interest rates staying high knocked U.S. stocks lower on Tuesday, as the market closed out its worst month since September.

The S&P 500 tumbled 1.6% to cement its first losing month in the last six. Its momentum slammed into reverse in April, falling as much as 5.5% at one point, after setting a record at the end of March.

The Dow Jones Industrial Average dropped 570 points, or 1.5%, and the Nasdaq composite lost 2%.

Stocks began sinking as soon as trading began, after a report showed U.S. workers won bigger gains in wages and benefits than expected during the first three months of the year. While that’s good news for workers and the latest signal of a solid job market, it feeds into worries that upward pressure remains on inflation.

It followed a string of reports this year that have shown inflation remains stubbornly high. That’s caused traders to largely give up on hopes that the Federal Reserve will deliver multiple cuts to interest rates this year. And that in turn has sent Treasury yields jumping in the bond market, which has cranked up the pressure on stocks.

Tuesday’s losses for stocks accelerated at the end of the day as traders made their final moves before closing the books on April, and ahead of an announcement by the Federal Reserve on interest rates scheduled for Wednesday afternoon.

No one expects the Federal Reserve to change its main interest rate at this meeting. But traders are anxious about what Fed Chair Jerome Powell may say about the rest of the year.

Traders are now mostly betting the Fed will cut rates either one or zero times through the balance of 2024, according to data from CME Group. That’s a big letdown after traders came into the year forecasting six or more cuts.

The Fed itself was earlier penciling in three cuts to rates during 2024, but top officials have recently hinted rates may stay high for longer as they wait for more confirmation inflation is heading down toward their 2% target. The Fed’s main interest rate is sitting at the highest level since 2001, which puts downward pressure on the economy and investment prices.

Without the benefit of easing interest rates, companies will need to deliver bigger profits in order to support their stock prices, which critics have called broadly too expensive following their run to records.

GE Healthcare Technologies tumbled 14.3% after it reported weaker results and revenue for the latest quarter than analysts expected. F5 dropped 9.2% despite reporting a better profit than expected. Its revenue fell short of forecasts, and it said customers were remaining cautious and forecasting largely flat IT budgets for the year.

McDonald’s slipped 0.2% after its profit for the latest quarter came up just shy of analysts’ expectations. It was hurt by weakening sales trends at its franchised stores overseas, in part by boycotts from Muslim-majority markets over the company’s perceived support of Israel.

Helping to keep the market’s losses in check was 3M, which rose 4.7% after reporting stronger results and revenue than forecast. Eli Lilly climbed 6% after turning in a better profit than expected on strong sales of its Mounjaro and Zepbound drugs for diabetes and obesity. It also raised its forecasts for revenue and profit for the full year.

Stocks of cannabis companies also soared after The Associated Press reported the U.S. Drug Enforcement Administration will move to reclassify marijuana as a less dangerous drug in a historic shift. Cannabis producer Tilray Brands jumped 39.5%.

All told, the S&P 500 fell 80.48 points to 5,035.69. The Dow dropped 570.17 to 37,815.92, and the Nasdaq composite fell 325.26 to 15,657.82.

This earnings reporting season has largely been better than expected so far. Not only have the tech companies that dominate Wall Street done well, so have companies across a range of industries.

That’s a change from the recent past, and it helped push strategists at Deutsche Bank to raise their forecast for full-year earnings growth for the S&P 500. Many companies are topping forecasts because they’ve been able to wring more profit out of each $1 of revenue than analysts were expecting, according to Binky Chadha, chief strategist at Deutsche Bank.

Such strength could support stock prices even if interest rates end up staying high, according to Kristy Akullian, head of iShares Investment Strategy, Americas.

“Equities don’t need Fed rate cuts for the rally to continue, all they need is solid earnings growth,” she said.

In the bond market, the yield on the 10-year Treasury rose to 4.68% from 4.61% just before the morning release of the report on employee wages and benefits.

The two-year Treasury yield, which more closely tracks expectations for the Fed, jumped back above the 5% level to 5.03% from 4.97% late Monday.

In stock markets abroad, Japan’s Nikkei 225 rose 1.2% after reopening following a holiday. The government reported stronger-than-expected gains in industrial production for March.

Indexes were mixed across much of the rest of Asia but lower in Europe.

ASX 200 expected to sink​

It looks set to be a session to forget for the Australian share market on Wednesday following a market selloff in the United States.

According to the latest SPI futures, the ASX 200 is expected to open the day 92 points or 1.3% lower.

More worries about inflation and interest rates staying high knocked U.S. stocks lower on Tuesday, as the market closed out its worst month since September.

The S&P 500 tumbled 1.6% to cement its first losing month in the last six. Its momentum slammed into reverse in April, falling as much as 5.5% at one point, after setting a record at the end of March.

The Dow Jones Industrial Average dropped 570 points, or 1.5%, and the Nasdaq composite lost 2%.

All told, the S&P 500 fell 80.48 points to 5,035.69. The Dow dropped 570.17 to 37,815.92, and the Nasdaq composite fell 325.26 to 15,657.82.

 

[bigdog]

Stock market today: Asian markets follow Wall Street swings after Fed keeps interest rates high

Asian markets are wobbling in early trading after U.S. stocks swung to a mixed finish with the Federal Reserve delaying cuts to interest rates.

apnews.com

Wall Street swings after Fed keeps interest rates high, downplays odds of a hike​

By STAN CHOE
Updated 7:22 AM GMT+10, May 2, 2024

NEW YORK (AP) — U.S. stocks swung to a mixed finish on Wednesday after the head of the Federal Reserve said the cuts to interest rates that Wall Street craves so much are still likely, even if they’re delayed because of stubbornly high inflation.

The S&P 500 fell 17.30 points, or 0.3%, to 5,018.39 after the Fed held its main interest rate at its highest level since 2001, just as markets expected. The index had rallied as much as 1.2% in the afternoon before giving up all the gains at the end of trading.

The Dow Jones Industrial Average rose 87.37, or 0.2%, to 37,903.29, and the Nasdaq composite lost 52.34, or 0.3%, to 15,605.48.

On the downside for financial markets, Federal Reserve Chair Jerome Powell said out loud the fear that’s recently sent stock prices lower and erased traders’ hopes for imminent cuts to interest rates: “In recent months, inflation has shown a lack of further progress toward our 2% objective.” He also said that it will likely take “longer than previously expected” to get confident enough to cut rates, a move that would ease pressure on the economy and investment prices.

At the same time, though, Powell calmed a fear swirling in the market, that inflation has remained so high that additional hikes to rates may be necessary.

“I think it’s unlikely that the next policy rate move will be a hike,” he said.

The Fed also offered financial markets some assistance by saying it would slow the pace of how much it’s shrinking its holdings of Treasurys. Such a move could grease the trading wheels in the financial system, offering stability in the bond market. Powell said the Fed did it to reduce “risk of money markets showing stress.”

Yields eased in the bond market following the move and Powell’s comments.

The yield on the 10-year Treasury fell to 4.63% from 4.65% just before the announcement, easing the pressure on the stock market. The yield on the two-year Treasury yield, which more closely tracks expectations for the Fed, dropped to 4.95% from 5.04% late Tuesday.

Traders themselves had already downshifted their expectations for rate cuts this year to one or two, if any, after coming into the year forecasting six or more. That’s because they saw the same string of reports as the Fed, which showed inflation remaining stubbornly higher than forecast this year.

Powell had already recently hinted rates may stay high for a while. That was a disappointment for Wall Street after the Fed earlier had indicated it was penciling in three cuts to rates during 2024.

Powell’s comments Wednesday were largely seen as less harsh than feared.

“Yet, before markets get overly excited, it’s worth remembering that the Fed is responding to the unfolding economic data, just as we all are,” according to Seema Shah, chief global strategist at Principal Asset Management. “The next few months of data are pivotal for the Fed path.”

Without the benefit of easing rates, companies will need to deliver better profits to support their stock prices.

CVS Health tumbled 16.8% after reporting weaker results for the latest quarter than analysts expected. It said it’s been hurt by increased costs at its Medicare Advantage business, and it cut its forecast for profit over the full year.

Starbucks dropped 15.9% after falling short of expectations for both profit and revenue in the latest quarter. Sales trends weakened at its stores outside the United States in particular, and it cut its full-year forecasts for profit and revenue.

Super Micro Computer, which has been one of Wall Street’s hottest stars, gave back 14% despite topping expectations for profit. The company, which sells server and storage systems used in AI and other computing, fell shy of analysts’ forecasts for revenue. Expectations had bult up after its stock had already tripled this year amid a broad frenzy on Wall Street around artificial-intelligence technology.

Advanced Micro Devices dropped 8.9% despite reporting profit that matched expectations. Its revenue came in a bit shy of forecasts, as did the midpoint of its forecasted range for revenue in the current quarter.

On the winning side was Amazon, which climbed 2.3% after reporting stronger profit for the latest quarter than analysts expected. The retail behemoth credited reaccelerating growth at its cloud-computing business, in part, as it benefits from demand for AI.

Before the Fed’s announcement, stocks and Treasury yields had been moving relatively little following some weaker-than-expected reports on the economy.

One report from the Institute for Supply Management said the U.S. manufacturing sector unexpectedly fell back into contraction last month.

A separate report said U.S. employers were advertising slightly fewer jobs at the end of March than economists expected. The hope on Wall Street has been that a cooldown could help prevent upward pressure on inflation. The downside is that if it weakens too much, a major support for the economy could give out.


ASX 200 expected to fall again

The Australian share market looks set for a subdued session on Thursday following a mixed night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 5 points lower this morning.

U.S. stocks swung to a mixed finish on Wednesday after the head of the Federal Reserve said the cuts to interest rates that Wall Street craves so much are still likely, even if they’re delayed because of stubbornly high inflation.

The S&P 500 fell 17.30 points, or 0.3%, to 5,018.39 after the Fed held its main interest rate at its highest level since 2001, just as markets expected. The index had rallied as much as 1.2% in the afternoon before giving up all the gains at the end of trading.

The Dow Jones Industrial Average rose 87.37, or 0.2%, to 37,903.29, and the Nasdaq composite lost 52.34, or 0.3%, to 15,605.48.

 

[bigdog]

Stock market today: Asian shares advance ahead of US jobs report

Asian shares are mostly higher ahead of a report on the U.S. jobs market. Several markets, including Tokyo and Shanghai, were closed for holidays.

apnews.com

Wall Street climbs to trim its loss for the week​

By STAN CHOE
Updated 7:58 AM GMT+10, May 3, 2024

NEW YORK (AP) — U.S. stocks climbed Thursday to trim the majority of their losses for the week.

The S&P 500 rose 45.81 points, or 0.9%, to 5,064.20 a day after swinging sharply when the Federal Reserve said it’s likely delaying cuts to interest rates but not planning to hike them. It more than halved its drop for the week.

The Dow Jones Industrial Average rose 322.37, or 0.9%, to 38,225.66, and the Nasdaq composite jumped 235.48, or 1.5%, to 15,840.96.

In the bond market, Treasury yields eased ahead of a report on Friday from the U.S. government on how many jobs employers added last month. It’s one of the most highly anticipated economic reports each month, and economists expect it to show a slowdown in hiring.

“The markets will be hungry for any data suggesting the economy isn’t heating up any more than it did in” the first three months of 2024, according to Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley. That would give the Fed more leeway to consider cutting rates.

Earnings reports from several big companies helped drive the market higher. Qualcomm rose 9.7% after topping forecasts for profit and revenue in the latest quarter. The tech company also gave forecasted ranges for upcoming revenue and profit whose midpoints topped analysts’ expectations.

Carvana revved 33.8% higher after the used-car seller reported much better results for the latest quarter than analysts expected, boosted by better-than-forecast sales.

MGM Resorts International rose 2.8% after likewise topping forecasts for profit and revenue. It credited stronger traffic at MGM China, which ramped up as COVID-19 restrictions fell away in Macau.

Apple climbed 2.2% ahead of its profit report, which arrived after trading ended Thursday. It’s the latest to report among the group of stocks known as the “Magnificent Seven,” which drove the majority of the market’s gains last year.

They helped to offset a 15.1% drop for Etsy, which only roughly matched analysts’ expectations for results and revenue. It cited a “still challenging” environment where customers broadly are more selective about the non-essentials they’re buying.

DoorDash sank 10.3% after reporting a worse loss than expected. The company, which has been spending more on personnel and research and development, also gave a forecasted range for underlying earning trends in the current quarter whose midpoint fell short of analysts’ expectations.

Peloton Interactive swung from an early gain to a loss of 2.8% after it said it would cut roughly 400 jobs as part of a program to save $200 million in costs annually. It also said its CEO, Barry McCarthy, is stepping down. The company’s stock had fallen to a record low last week.

Linde was one of the heaviest weights on the S&P 500, sinking 5.2%, despite reporting stronger results for the latest quarter than expected. Revenue for the industrial gases and engineering company fell short of Wall Street’s expectations, as did the midpoint of its forecasted range for earnings in the current quarter.

In the bond market, which has been helping to dictate much of the stock market’s movements recently, yields fell following some economic reports.

One showed that fewer U.S. workers applied for unemployment benefits last week than economists expected. It’s the latest signal that the job market remains solid despite high interest rates.

A separate, potentially more disappointing report suggested growth in how much U.S. workers produced per hour worked was weaker at the start of 2024 than economists expected. A measure comparing labor costs to productivity, meanwhile, rose by more than expected in the preliminary report. That could put upward pressure on inflation.

The economy is in a tight spot, where the hope is that it remains strong enough to stay out of a recession but not so strong that it worsens the already stalled progress on inflation.

Stubbornly high readings on inflation this year are what pushed Federal Reserve Chair Jerome Powell to say on Wednesday that it will likely take “longer than previously expected” to get enough confidence about inflation to cut interest rates.

The Fed’s main interest rate has been sitting at its highest level since 2001, and cuts would release some pressure on the economy and financial markets.

After coming into the year forecasting six or more cuts to rates in 2024, traders are now largely betting on just one or two, if any, according to data from CME Group.

The yield on the 10-year Treasury fell to 4.58% from 4.63% late Wednesday. The two-year yield, which moves more closely with expectations for the Fed, fell to 4.88% from 4.97%.

In stock markets abroad, indexes were mixed across Asia and Europe. Hong Kong’s Hang Seng jumped 2.5%, while other markets in China were closed for a holiday.

ASX 200 poised to rise​

The Australian share market looks set to end the week on a positive note thanks to a strong night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open 35 points or 0.45% higher this morning.

U.S. stocks climbed Thursday to trim the majority of their losses for the week.

The S&P 500 rose 45.81 points, or 0.9%, to 5,064.20 a day after swinging sharply when the Federal Reserve said it’s likely delaying cuts to interest rates but not planning to hike them. It more than halved its drop for the week.

The Dow Jones Industrial Average rose 322.37, or 0.9%, to 38,225.66, and the Nasdaq composite jumped 235.48, or 1.5%, to 15,840.96.

 

[bigdog]

Stock market today: Wall Street rallies after hiring shows welcome signs of cooling

Stocks closed sharply higher on Wall Street, erasing their losses for the week, after the government reported a cooldown in hiring last month.

apnews.com

Stock market today: Wall Street rallies after hiring shows welcome signs of cooling​

By ALEX VEIGA and DAMIAN J. TROISE
Updated 7:05 AM GMT+10, May 4, 2024

Wall Street capped a choppy week of trading Friday with the best day for the stock market in over two months, as traders welcomed cooler-than-expected U.S. employment data as a sign that inflationary pressures on the economy are easing.

The S&P 500 rose 1.3%, its best day since late February. The benchmark index also erased its losses for the week.

The Dow Jones Industrial Average rose 1.2%. The Nasdaq composite ended 2% higher, reflecting strong gains by technology sector stocks, which accounted for much of the rally.

The nation’s employers added 175,000 jobs last month, down sharply from the blockbuster increase of 315,000 in March, according to the Labor Department. The latest hiring tally came in well below the 233,000 gain that economists had predicted. Meanwhile, average hourly earnings, a key driver of inflation, rose less than expected.

The modest increase in hiring last month suggests the Federal Reserve’s aggressive streak of rate hikes may be finally starting to take a bigger toll on the world’s largest economy. That may help reassure the Fed that inflation will ease further, which could move the central bank closer to lowering interest rates.

“The demand for labor is slowing, which will eventually ease inflation pressures, giving the Fed some leeway to cut rates later this year,” said Jeffrey Roach, chief economist for LPL Financial. “Slower payroll growth and fewer hours worked imply the economy is slowing at a measured pace. This jobs report is consistent with the soft landing narrative.”

Treasury yields in the bond market mostly fell following the jobs report. The yield on the 10-year Treasury, which lenders use as a guide for pricing home loans, eased to 4.5% from 4.59% late Thursday. The two-year yield, which moves more closely with expectations for the Fed, fell to 4.81% from 4.88%.

The U.S. economy is in a tight spot, where the hope is that it remains strong enough to stay out of a recession but not so strong that it worsens the already stalled progress on inflation. That is essentially the “soft landing” the Fed is hoping to achieve as it tries to cool the rate of inflation to its target of 2%. Inflation at the consumer level stood at 3.5% in March, far below the peak of 9.1% nearly two years ago.

Stubbornly high readings on inflation this year pushed Federal Reserve Chair Jerome Powell to say on Wednesday that it will likely take “longer than previously expected” to get enough confidence about inflation cooling enough to warrant cutting interest rates.

“Some of this data coming out of the employment report dampens that narrative a little bit,” said Charlie Ripley, senior investment strategist for Allianz Investment Management. “They want to cut interest rates, but they need more confidence in the inflation data and today’s wage data is a little bit more confidence for them.”

The Fed’s main interest rate has been sitting at its highest level since 2001, and cuts would release some pressure on the economy and financial markets.

The benchmark S&P 500 fell 4.2% in April, its first monthly loss since October, as signals of stubbornly high inflation forced traders to ratchet back expectations for when the Fed could begin easing interest rates.

After coming into the year forecasting six or more cuts to rates in 2024, traders are now largely betting on just one or two, if any, according to data from CME Group.

Friday’s market rally was widespread, though technology stocks powered much of the gains. Apple jumped 6% after announcing a mammoth $110 billion stock buyback. The tech giant reported late Thursday its steepest quarterly decline in iPhone sales since the outset of the pandemic.

Microsoft rose 2.2% and Nvidia added 3.5%.

Several companies notched gains after reporting strong quarterly results.

Amgen climbed 11.8% after the biotechnology company gave investors an encouraging update on a potential obesity drug. Live Nation Entertainment added 7.2% after the ticket seller and concert promoter beat analysts’ first-quarter revenue forecasts.

Motorola Solutions closed 5.2% higher after the communications equipment maker raised its profit forecast for the year.

Booking Holdings rose 3% after reporting better-than-expected first-quarter bookings and revenue. Another online travel company, Expedia Group, didn’t fare as well, despite its latest quarterly results beating Wall Street targets. Its shares slumped 15.3% for the biggest decline among S&P 500 stocks after it lowered its full-year bookings guidance because its Vrbo rental unit has been slow to recover from its migration to Expedia’s platform.

All told, the S&P 500 rose 63.59 points to 5,127.79, while the Dow gained 450.02 points to 38,675.68. The Nasdaq gained 315.37 points to close at 16,156.33.

In Europe, Germany’s DAX gained 0.6%, while the CAC 40 in Paris rose 0.5% and London’s FTSE 100 added 0.5%.

Markets in Tokyo and mainland China were closed for holidays. The Japanese yen strengthened slightly against the dollar.

 

[bigdog]

ASX 200 expected to rise​

The Australian share market looks set for another good session following a strong night on Wall Street on Friday.

According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.3% higher.
Wall Street capped a choppy week of trading Friday with the best day for the stock market in over two months, as traders welcomed cooler-than-expected U.S. employment data as a sign that inflationary pressures on the economy are easing.


The S&P 500 rose 1.3%, its best day since late February. The benchmark index also erased its losses for the week.


The Dow Jones Industrial Average rose 1.2%. The Nasdaq composite ended 2% higher, reflecting strong gains by technology sector stocks, which accounted for much of the rally.


Market Watch

 

[bigdog]

Stock market today: Asian shares mostly higher, though China benchmarks falter

Asian markets are mostly higher, although Chinese shares faltered. U.S. futures and oil prices edged higher.

apnews.com

Wall Street rises to add to last week’s gains​

By STAN CHOE
Updated 6:26 AM GMT+10, May 7, 2024

NEW YORK (AP) — U.S. stocks rose Monday and added to their gains from last week, as technology companies once again led the way.

The S&P 500 rose 52.95, or 1%, to 5,180.74. The Dow Jones Industrial Average added 176.59, or 0.5%, to 38,852.27, and the Nasdaq composite jumped 192.92, or 1.2%, to 16,349.25.

Tech stocks were at the forefront, with familiar ringleaders Nvidia and Super Micro Computer again pulling the market higher. They’ve had a couple hiccups recently, but a frenzy around artificial-intelligence technology has Nvidia up 86.1% for the year so far after Monday’s 3.8% gain. Super Micro is up 192.1% after its gain of 6.1%.

Vistra, an electricity and power generation company, rose 2.1% after investors learned it will join the widely tracked S&P 500 index on Wednesday. Freshpet jumped 10.4% after reporting better results than expected in large part because it sold 30% more food for cats and dogs, and Berkshire Hathaway added 1% after Warren Buffett’s company reported its latest quarterly results over the weekend.

They helped to offset a 9.7% slide for Spirit Airlines, which reported a slightly worse loss than expected. The carrier said it’s facing increased competition in many of its markets, particularly between the United States and Latin America.

Apple slipped 0.9% after Berkshire Hathaway revealed it had pared its stake in the tech giant.

The U.S. stock market has been swinging sharply since setting a record at the end of March. It sunk for weeks on fears that stubbornly high inflation would prevent or at least delay the Federal Reserve from delivering the cuts to interest rates that Wall Street craves.

But markets found a burst of optimism at the end of last week following a cooler-than-expected jobs report. It suggested the U.S. economy could nail the tightrope walk of staying strong enough to avoid a bad recession, but not so firm that it puts too much upward pressure on inflation.

Goldman Sachs economist David Mericle said he still expects two cuts to rates this year, in July and November, after Fed Chair Jerome Powell “pushed back strongly against the possibility of further rate hikes” at his press conference last week.

This upcoming week won’t include such highly anticipated events as last week’s Fed meeting or monthly jobs report. The bulk of companies in the S&P 500 have also already reported their results for the first three months of the year, with more than three-quarters of them topping profit expectations, according to FactSet.

But several more big names are still on the way this week, including The Walt Disney Co. and Uber Technologies.

In the bond market, which has been dictating much of the action in the stock market recently, Treasury yields held mostly steady.

The yield on the 10-year Treasury edged down to 4.49%, from 4.50% late Friday. The two-year Treasury yield, which more closely tracks expectations for the Fed, was also relatively little changed.

Traders are betting on a nearly 89% chance that the Fed will cut its main interest rate at least once before the end of the year, according to data from CME Group. That’s up from from an 81.6% probability seen a week earlier. Lower rates would help ease the pressure on the economy and financial system.

In stock markets abroad, several exchanges were closed for holidays. Indexes rose relatively modestly in France and Hong Kong. They jumped 1% in Germany and 1.2% in Shanghai.

Corporate profit reports have been better than expected not just in the United States but also in Europe and Japan, according to strategists at Deutsche Bank. Global earnings growth is on track for a second straight quarter of growth following four consecutive declines.


ASX 200 expected to rise again

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

According to the latest SPI futures, the ASX 200 is poised to open the day 38 points or 0.5% higher.

U.S. stocks rose Monday and added to their gains from last week, as technology companies once again led the way.

The S&P 500 rose 52.95, or 1%, to 5,180.74. The Dow Jones Industrial Average added 176.59, or 0.5%, to 38,852.27, and the Nasdaq composite jumped 192.92, or 1.2%, to 16,349.25.

 

[bigdog]

Stock market today: Asian shares mixed after calm day on Wall St

Asian shares are mixed after U.S. stocks held relatively steady on Wall Street. Tokyo's Nikkei 225 lost 1.5% but most other markets saw modest changes.

apnews.com

Wall Street drifts to a mixed finish in a quiet day of trading​

By STAN CHOE
Updated 7:36 AM GMT+10, May 8, 2024

NEW YORK (AP) — U.S. stocks held steady Tuesday, as trading on Wall Street calmed following some sharp recent swings.

The S&P 500 edged up by 6.96 points, or 0.1%, to 5,187.70. It was a quiet day following three straight leaps for the index of at least 0.9%.

The Dow Jones Industrial Average added 31.99, or 0.1%, to 38,884.26, and the Nasdaq composite slipped 16.69, or 0.1%, to 16,332.56.

Kenvue, the company whose brands include Band-Aids and Tylenol, rose 6.4% after topping analysts’ forecasts for both profit and revenue in the latest quarter.

The Walt Disney Co. sank 9.5% despite reporting stronger results for its latest quarter than analysts expected. Its revenue fell a bit shy of forecasts, and it expects its entertainment streaming business to soften in the current quarter.

They’re among the tail end of companies reporting their results for the first three months of the year. The majority of companies has so far been beating forecasts for earnings, but they’re not getting as big a boost to their stock prices afterward as they usually do, according to FactSet. Not only that, companies that fall short of profit expectations have seen their stock prices sink by more the following day than they have historically.

That could suggest investors are listening to critics who have been calling the U.S. stock market broadly too expensive following its run to records this year. For stock prices to climb further, either profits will need to grow more or interest rates will need to fall.
Wall Street still considers the latter a possibility this year following some events last week that traders found encouraging.

Federal Reserve Chair Jerome Powell said the central bank remains closer to cutting its main interest rate than hiking it, despite a string of stubbornly high readings on inflation this year. A cooler-than-expected jobs report on Friday, meanwhile, suggested the U.S. economy could pull off the balancing act of staying solid enough to avoid a bad recession without being so strong that it keeps inflation too high.

After charging higher through the start of this year when hopes dimmed for cuts to interest rates by the Federal Reserve, Treasury yields have been regressing this month to offer some relief for the stock market.

The yield on the 10-year Treasury fell to 4.45% from 4.49% late Monday. The two-year yield, which moves more closely with expectations for the Fed, slipped to 4.82% from 4.83%.

While long-term yields have been declining over the last week, strategists at Wells Fargo Investment Institute still expect them to remain relatively high for a while. That’s in part because expectations are broadly for inflation to remain higher than hoped. Luis Alvarado, global fixed income strategist, believes the 10-year yield will likely remain near its recent range.

Elsewhere on Wall Street, Crocs jumped 7.8% after reporting better profit and revenue than expected. It benefited from strong growth internationally.

International Flavors & Fragrances, which makes ingredients used in food and perfume, gained 6.4% after reporting better profit and revenue than expected. It also said it expects its revenue for the full year to come in at the higher end of its forecasted range.

Lucid Group tumbled 14%.1 after the electric-vehicle maker reported a worse loss for the latest quarter than analysts expected.

Builders FirstSource fell 19% despite topping forecasts for profit and revenue. The supplier of building products said a weakening multi-family market and higher mortgage rates were creating challenges, and its forecast for how much cash it will generate this year came in below some analysts’ expectations.

In stock markets abroad, indexes jumped across much of Europe and Asia. Stocks rose 2.2% in Seoul, 1.6% in Tokyo and 1.2% in London. Australia’s S&P/ASX 200 advanced 1.4% after the central bank decided to keep interest rates unchanged.

ASX 200 expected to rise again​

It looks set to be another positive day for the Australian share market on Wednesday following a relatively good 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 held steady Tuesday, as trading on Wall Street calmed following some sharp recent swings.

The S&P 500 edged up by 6.96 points, or 0.1%, to 5,187.70. It was a quiet day following three straight leaps for the index of at least 0.9%.

The Dow Jones Industrial Average added 31.99, or 0.1%, to 38,884.26, and the Nasdaq composite slipped 16.69, or 0.1%, to 16,332.56.

 

[bigdog]

Stock market today: Asian shares mixed after Wall Street's lull stretches to a 2nd day

Asian shares are mixed after Wall Street’s lull stretched into a second day. China reported better than expected trade figures for April.

apnews.com

Wall Street’s lull stretches to a second day as indexes finish mixed​

By STAN CHOE
Updated 7:26 AM GMT+10, May 9, 2024

NEW YORK (AP) — Wall Street’s lull stretched into a second day, as U.S. stocks drifted to a mixed close in a quiet Wednesday.

The S&P 500 finished virtually unchanged after flipping between modest gains and losses through the day. It edged down by 0.03 to 5,187.67. It was coming off a very slight gain from Tuesday, which followed a big three-day winning streak.

The Dow Jones Industrial Average rose 172.13 points, or 0.4%, to 39,056.39, and the Nasdaq composite slipped 29.80, or 0.2%, to 16,302.76.

Uber Technologies slumped 5.7% after reporting worse results for the latest quarter than analysts expected. It also gave a forecasted range for bookings in the current quarter whose midpoint fell below analysts’ estimates.

Shopify tumbled 18.6% despite reporting better profit and revenue for the latest quarter than analysts expected. The company, which helps businesses sell things online, said its revenue growth would likely slow this quarter and that it would likely make less profit off each $1 in revenue.

Match Group sank 5.4% despite topping profit expectations. The company behind Tinder, Hinge and other apps for connecting people with each other gave a forecast for revenue in the current quarter that fell short of what analysts were expecting. It said its efforts to make Tinder better for women and Gen Z customers in particular have hurt some performance measurements in the short term.

Intel fell 2.2% after saying the U.S. Commerce Department revoked licenses for exports to a Chinese customer. That could cause its revenue for the current quarter to fall below the midpoint of the forecasted range it had earlier given.

They helped to offset Lyft, which revved 7.1% higher after it topped expectations for profit and revenue. It said growth was particularly strong for early-morning, commute and weekend-evening trips.

Reddit was another winner and rose 4% after delivering its first quarterly report as a publicly traded company. It reported a milder loss and better revenue than expected, while also giving a stronger-than-expected forecast for revenue in the current quarter.

Arista Networks climbed 6.5% for the biggest gain in the S&P 500 after topping expectations for both profit and revenue.

Most companies have been reporting stronger profits for the start of the year than analysts expected. That and newly revived hopes for coming cuts to interest rates by the Federal Reserve have helped the U.S. stock market to recover from its rough April.

Treasury yields have largely been easing since Federal Reserve Chair Jerome Powell said last week that the central bank remains closer to cutting its main interest rate than hiking it, despite a string of stubbornly high readings on inflation this year. A cooler-than-expected jobs report on Friday, meanwhile, suggested the U.S. economy could pull off the balancing act of staying solid enough to avoid a bad recession without being so strong that it keeps inflation too high.

The yield on the 10-year Treasury recovered some of those losses. It rose to 4.49% from 4.46% late Tuesday.

The yield on the two-year Treasury, which moves closer with expectations for action by the Fed, ticked up to 4.84% from 4.83%.

The stock market also found some support following April’s weakness as companies bought back more shares of their own stock, according to Mark Hackett, Nationwide’s chief of investment research. He said the market’s zig-zag pattern since March “is likely to remain as we search for a catalyst.”

In stock markets abroad, indexes fell across much of Asia. Japan’s Nikkei 225 dropped 1.6% after Nintendo forecast that its net profit would fall in the upcoming fiscal year and announced that news of a successor product to its popular Switch device will be made by March 2025.

Stock indexes rose modestly in Europe.

ASX 200 expected to fall​

The Australian share market looks set for a subdued session on Thursday following a mixed night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 19 points or 0.2% lower this morning.

Wall Street’s lull stretched into a second day, as U.S. stocks drifted to a mixed close in a quiet Wednesday.

The S&P 500 finished virtually unchanged after flipping between modest gains and losses through the day. It edged down by 0.03 to 5,187.67. It was coming off a very slight gain from Tuesday, which followed a big three-day winning streak.

The Dow Jones Industrial Average rose 172.13 points, or 0.4%, to 39,056.39, and the Nasdaq composite slipped 29.80, or 0.2%, to 16,302.76.


Market Watch

 

[bigdog]

Stock market today: Asian shares are mixed after Wall St rally takes S&P 500 near record

Stocks in Asia are mixed after a rally on Wall Street that pulled the S&P 500 back within 1% of its record. Benchmarks fell in Tokyo, Sydney and Seoul but rose in China.

apnews.com

Wall Street rises to pull S&P 500 back within 1% of its record​

By STAN CHOE
Updated 7:31 AM GMT+10, May 10, 2024

NEW YORK (AP) — U.S. stocks rose Thursday to pull the S&P 500 back within 1% of its record following a rough April.

The S&P 500 rose 26.41 points, or 0.5%, to 5,214.08. The Dow Jones Industrial Average gained 331.37, or 0.8%, to 39,387.76, and the Nasdaq composite added 43.51, or 0.3%, to 16,346.26.

A report showing a pickup in layoffs helped to support the market. The number of workers applying for unemployment benefits rose by more last week than economists expected, though it remains relatively low compared with history.

That could be a sign the economy can pull off a hoped-for balancing act of staying solid enough to avoid a bad recession, but not so strong that it puts upward pressure on inflation. Treasury yields erased earlier gains immediately after the report’s release, an indication of expectations for the Federal Reserve to deliver long-sought cuts to interest rates later this year.

Elsewhere on Wall Street, some stocks swung sharply following their latest earnings reports.

Equinix jumped 11.5% after reporting stronger profit for the latest quarter than analysts expected. The company, which runs data centers around the world, also said an independent investigation led by its board found no accounting inconsistencies or errors that would require financial restatements. Earlier, an investment firm had accused it of “major accounting manipulation.”

Yeti Holdings rose 12.8% after reporting better profit for the latest quarter than expected thanks to stronger sales for its drinkware and coolers and equipment. It also raised its forecast for full-year earnings per share. Like other companies, it’s plowing cash into buying back its own stock, which boosts per-share profit for existing investors.

Cheesecake Factory gained 6.2% after topping expectations for profit. The results were encouraging following some recent warnings by big food and drink companies about how much pressure their customers, particularly lower-income ones, are feeling.

Airbnb sank 6.9% despite topping expectations for profit and revenue. It gave a forecasted range for revenue in the current quarter whose midpoint fell short of what analysts expected. It said an earlier Easter pulled more of its business this year into the first quarter from the second quarter.

Beyond Meat, the maker of plant-based meat substitutes, fell 14.4% after it posted a much worse loss than analysts expected as demand continued to crater.

In the bond market, the yield on the 10-year Treasury eased to 4.45% from 4.50% late Wednesday. The two-year yield, which more closely tracks expectations for the Fed, slipped to 4.81% from 4.84% late Wednesday.

A smooth auction of 30-year Treasury bonds helped to keep yields stable.

Treasury yields have largely been easing since Federal Reserve Chair Jerome Powell said last week that the central bank remains closer to cutting its main interest rate than hiking it, despite a string of stubbornly high readings on inflation this year. A cooler-than-expected jobs report on Friday, meanwhile, suggested the U.S. economy could manage to avoid being either too hot or too cold.

It could take a while for inflation in the United States to cool all the way back to the Federal Reserve’s target, even with the Fed’s main interest rate at its highest level in more than two decades. Economists at S&P Global Market Intelligence slightly downgraded their forecasts for U.S. economic growth in 2025 and 2026, which they said could allow inflation to settle at the Fed’s target on a sustained basis by 2027.

In stock markets abroad, indexes rose in London and other markets in Europe after the Bank of England hinted it may soon cut its key interest rate from a 16-year high.

In Asia, indexes were mixed. They climbed 1.2% in Hong Kong and 0.8% in Shanghai after China reported its exports rose 1.5% in April from a year earlier, while imports jumped 8.4%. The renewed growth suggests a stronger recovery in demand than earlier data had suggested.

ASX 200 poised to rebound​

The Australian share market looks set to end the week on a positive note thanks to a strong session on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open 23 points or 0.25% higher this morning.

U.S. stocks rose Thursday to pull the S&P 500 back within 1% of its record following a rough April.

The S&P 500 rose 26.41 points, or 0.5%, to 5,214.08. The Dow Jones Industrial Average gained 331.37, or 0.8%, to 39,387.76, and the Nasdaq composite added 43.51, or 0.3%, to 16,346.26.

 

[bigdog]

Stock market today: Wall Street coasts to the finish line of another winning week

U.S. stocks coasted to the close of another winning week with a quiet, mixed finish. The S&P 500 rose 0.2% Friday.

apnews.com

Wall Street coasts to the finish line of another winning week​

By STAN CHOE
Updated 7:40 AM GMT+10, May 11, 2024

NEW YORK (AP) — U.S. stocks coasted to the close of another winning week on Friday.

The S&P 500 rose 8.60 points, or 0.2%, to 5,222.68 to finish a third straight winning week following its mostly miserable April. It had been on pace for a bigger gain in the morning, but that mostly disappeared following a discouraging report on U.S. consumer sentiment.

The Dow Jones Industrial Average gained 125.08 points, or 0.3%, to 39,512.84, and the Nasdaq composite edged down by 5.40, or less than 0.1%, to 16,340.87.

The S&P 500 has climbed back within 0.6% of its record on revived hopes that the Federal Reserve may deliver cuts to interest rates this year. A flood of stronger-than-expected reports on profits from big U.S. companies has also helped support the market.

Gen Digital jumped 15.3% after reporting better profit for the first three months of 2024 than analysts expected. The cyber safety company, whose brands include Norton and LifeLock, also authorized a program to buy back up to $3 billion of its stock. It joined a lengthening list of companies announcing big such programs, which helps goose per-share earnings for investors.

Novavax nearly doubled and shot 98.7% higher after announcing a deal with Sanofi that could be worth more than $1.2 billion. The agreement includes a license to co-commercialize Novavax’s COVID-19 vaccine worldwide, with some exceptions. Novavax also reported a slightly smaller loss for the latest quarter than analysts expected.

They helped offset a drop of 11% for Akamai Technologies, which topped expectations for profit but fell short for revenue. The cloud-computing, security and content delivery company also gave some financial forecasts for the upcoming year that fell short of analysts’ expectations.

It said the strengthening of the U.S. dollar’s value against other currencies is slicing into its business, along with slowing traffic growth across the industry. That helped overshadow its own announcement of a program to buy back up to $2 billion of its stock.

In the bond market, Treasury yields rose following the discouraging preliminary report from the University of Michigan.

It suggested sentiment among U.S. consumers is weakening by much more than economists expected, and the drop was large enough to be “statistically significant and brings sentiment to its lowest reading in about six months,” according to Joanne Hsu, director of the survey of consumers.

Potentially even more discouraging is that U.S. consumers were forecasting inflation of 3.5% in the upcoming year, up from their forecast of 3.2% a month earlier. If such expectations spiral higher, the fear is that it could lead to a vicious cycle that worsens inflation.

It highlights how some companies have recently been describing increasing struggles among their customers, particularly their lower-income ones.

The yield on the 10-year Treasury rose to 4.50% from 4.46% late Thursday. But the movement was still relatively modest compared with its drop from 4.70% late last month.

Markets may remain on hold until Wednesday’s highly anticipated update on U.S. inflation at the consumer level, according to rates strategists at Bank of America. Traders are still largely penciling in one or two cuts to interest rates by the Federal Reserve this year, according to data from CME Group.

“Right now, the market is in a good mood thanks to a decent earnings season and a Fed that has a high bar to hiking,” according to Brian Jacobsen, chief economist at Annex Wealth Management. “That mood can change quickly.”

Last week, Federal Reserve Chair Jerome Powell helped pull yields lower after saying the central bank remains closer to cutting its main interest rate than hiking it, despite a string of stubbornly high readings on inflation this year. The Fed has been keeping its main interest rate at the highest level in more than two decades in hopes of getting high inflation fully under control.

A cooler-than-expected jobs report at the end of last week, meanwhile, suggested the U.S. economy could pull off the tricky balancing act of staying solid enough to avoid a bad recession but not so strong that it worsens inflation.

In stock markets abroad, London’s FTSE 100 rose 0.6% after the government reported the U.K. economy bounced back to growth at the start of the year. The performance was better than expected, and it snapped two straight quarters where the economy shrank.

In Japan, Tokyo’s Nikkei 225 rose 0.4% after a report showed strong auto exports whittled down the nation’s trade deficit and it racked up solid returns on overseas investments.

 

[bigdog]

ASX 200 expected to edge lower​

The Australian share market looks set to start the week in the red despite a relatively positive finish on Wall Street on Friday.

According to the latest SPI futures, the ASX 200 is expected to open the day 15 points or 0.2% lower.

On Friday, U.S. stocks coasted to the close of another winning week on Friday.

The S&P 500 rose 8.60 points, or 0.2%, to 5,222.68 to finish a third straight winning week following its mostly miserable April. It had been on pace for a bigger gain in the morning, but that mostly disappeared following a discouraging report on U.S. consumer sentiment.

The Dow Jones Industrial Average gained 125.08 points, or 0.3%, to 39,512.84, and the Nasdaq composite edged down by 5.40, or less than 0.1%, to 16,340.87.


Market Watch

 

[bigdog]

Stock market today: Asian shares mixed in muted trading after Wall Street barely budges

Asian shares are mixed in muted trading after U.S. stock indexes were little changed. Investors are waiting for updates on inflation in the U.S.

apnews.com

Wall Street barely budges as S&P 500 remains just shy of its record​

By STAN CHOE
Updated 7:27 AM GMT+10, May 14, 2024

NEW YORK (AP) — U.S. stock indexes drifted to a mixed finish Monday, hanging near their record heights.

The S&P 500 edged down by 1.26, or less than 0.1%, to 5,221.42 after flipping between small gains and losses through the day. It remains within 0.6% of its record set at the end of March.

The Dow Jones Industrial Average slipped 81.33 points, or 0.2%, to 39,431.51, and the Nasdaq composite rose 47.37, or 0.3%, to 16,338.24.

Biopharmaceutical company Incyte jumped 8.6% after saying it would buy back up to $2 billion of its stock. It’s the latest big company to say it’s returning cash to shareholders through such purchases, which boost the amount of earnings that each remaining share is entitled to.

GameStop soared 74.4% in a swing reminiscent of its maniacal moves from three years ago, when hordes of smaller-pocketed investors sent the stock’s price way above what many professional investors considered rational.

One believer in particular, nicknamed Roaring Kitty, helped lead that charge, and a post on a social media account linked to him stirred more adrenaline. Within the first 70 minutes of trading on Monday, trading of GameStop’s stock was temporarily halted nine times because its price was swinging so sharply.

On the losing end was Fortrea Holdings, a provider of clinical trial management and other services for the life sciences industry. It fell 14.9% after reporting weaker results for the first three months of the year than analysts expected. It also gave a forecast for revenue over the full year that was below analysts’ expectations.

Stocks have broadly rallied this month following a rough April on revived hopes that inflation may ease enough to convince the Federal Reserve to cut its main interest rate later this year. A key test for those hopes will arrive Wednesday, when the U.S. government offers the latest monthly update on inflation that households are feeling across the country.

Other reports this week include updates on inflation that wholesalers are seeing and sales at U.S. retailers. They could show whether fears are warranted about a worst-case scenario for the country, where stubbornly high inflation forms a devastating combination with a stagnating economy.

Hopes have climbed that the economy can avoid what’s called “stagflation” and hit the bull’s eye where it cools enough to get inflation under control but stays sturdy enough to avoid a bad recession. Federal Reserve Chair Jerome Powell also gave financial markets comfort when he recently said the Fed remains closer to cutting rates than to raising them, even if inflation has remained hotter than forecast so far this year.

Some critics say the Fed may have to delay rate cuts for longer than traders expect because of continued pressure on inflation. The goal for inflation that “the Fed seeks is a pipe dream,” according to Barry Bannister, a managing director at Stifel.

He says all the downward pressure on inflation that an economy usually gets from a recession has already been wrung out following the U.S. economic slowdown from 2022 into 2023, and he expects the next big move of 500 points for the S&P 500 to be downward.

In the meantime, a stream of stronger-than-expected reports on U.S. corporate profits has helped support the market. Companies in the S&P 500 are on track to report growth of 5.4% for their earnings per share in the first three months of the year versus a year earlier, according to FactSet. That would be the best growth in nearly two years.

Earnings season has nearly finished, and reports are already in for more than 90% of companies in the S&P 500. But this upcoming week includes Walmart and several other big names. They could offer more detail about how U.S. households are faring.

Worries have been rising about cracks showing in spending by U.S. consumers, which has been one of the bedrocks keeping the economy out of a recession. Lower-income households appear to be under particularly heavy strain amid still-high inflation.

In the bond market, Treasury yields eased a bit. The yield on the 10-year Treasury slipped to 4.48% from 4.50% late Friday.

In stock markets abroad, Chinese indexes were mixed. The Biden administration is expected to announce this week that it will raise tariffs on electric vehicles, semiconductors, solar equipment, and medical supplies imported from China, according to people familiar with the plan. Tariffs on electric vehicles, in particular, could quadruple to 100%.

Indexes slipped 0.2% in Shanghai and rose 0.8% in Hong Kong. Elsewhere in Asia and in Europe, most were modestly lower.

ASX 200 expected to edge lower​

The Australian share market is expected to edge lower 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 8 points or 0.1% lower.
U.S. stock indexes drifted to a mixed finish Monday, hanging near their record heights.

The S&P 500 edged down by 1.26, or less than 0.1%, to 5,221.42 after flipping between small gains and losses through the day. It remains within 0.6% of its record set at the end of March.

The Dow Jones Industrial Average slipped 81.33 points, or 0.2%, to 39,431.51, and the Nasdaq composite rose 47.37, or 0.3%, to 16,338.24.

 

[bigdog]

Stock market today: Asian markets follow Wall Street higher ahead of U.S. key inflation update

Asian stocks have advanced after equities rose on Wall Street, with the Nasdaq composite hitting a record high. Markets in Hong Kong and Seoul were closed for holidays.

apnews.com

Wall Street ends higher, sending Nasdaq to a record high​

By DAMIAN J. TROISE
Updated 7:22 AM GMT+10, May 15, 2024

NEW YORK (AP) — Stocks rose on Wall Street Tuesday, pushing the Nasdaq composite to another record and leaving the S&P 500 sitting just shy of its own all-time high.

The late gains closed out a mostly wobbly day of trading as investors reviewed a mixed report on inflation and await an even more important inflation update on Wednesday. Stocks have been generally gaining ground in May following a dismal April.

The S&P 500 index rose 25.26 points, or 0.5%, to 5,246.68. It is sitting about 0.1% below its record high set in late March. The Dow Jones Industrial Average rose 126.60 points, or 0.3%, to 39,558.11.

The Nasdaq composite, which is heavily influenced by technology stocks, jumped 122.94 points, or 0.8%, to 16,511.18, setting a record high. The tech sector has been a driving force for much of the broader market’s gains this year.

Several “meme” stocks, including GameStop and AMC Entertainment, raced higher in a reprise of the social-media driven frenzy of three years ago. GameStop jumped 60.1% and AMC rose 32%. Both stocks gave back much of their gains from earlier in the day.

An update on inflation showed that prices remain stubbornly high at the wholesale level, before many price changes are passed along to consumers. The latest producer price index showed that inflation rose sharply in April. The report also included a revision lower for the March reading. The report is the first of two big inflation updates this week that are being closely watched by Wall Street.

“Inflation pressures in the U.S economy are still substantial and the momentum that built up over the last few years is still rolling along,” said Bill Adams, chief economist for Comerica Bank. “At the margin the Fed will see the April PPI report as another reason to slow-roll interest rate cuts.”

Bond yields edged lower. The yield on the 10-year Treasury slipped to 4.45% from 4.49% late Monday. The yield on the two-year Treasury, which more closely tracks expectations for actions by the Federal Reserve, fell to 4.82% from 4.86%.

The bigger test for markets comes Wednesday, when the U.S. releases its monthly update on consumer prices, or inflation faced by households. Economists expect the consumer price index to ease to 3.4% in April on a year-over-year basis. The rate of inflation has been ticking higher in 2024, raising concerns that the Fed could have a hard time taming inflation to the central bank’s goal of 2%.

Investors have been curtailing their expectations for the speed and frequency of interest rate cuts this year as inflation remains hotter than expected. Traders are betting on one or two rate cuts this year, according to data from CME Group.

Wall Street is still hoping the Fed can pull off its “soft landing,” where high interest rates work to cool inflation without slowing the economy into a recession. The economy remains strong, but consumers might be showing signs of fatigue under the weight of stubborn inflation. Economists expect a retail sales report on Wednesday to show that consumer spending softened in April, just as it has over the last several months.

The latest round of earnings reports and company forecasts from retailers also show that consumers are struggling. Lower-income households are under a particularly heavy strain. Retail giant Walmart will report its latest financial results on Thursday, giving investors more insight into consumer spending habits.

Fed Chair Jerome Powell, at a panel discussion in Amsterdam on Tuesday, reaffirmed that the central bank won’t likely raise its key interest rate to respond to stubborn inflation. He also said that his confidence that inflation will ease is “not as high as it was” because price increases have been persistently hot in the first three months of this year.

Earnings have been a bright spot for markets, helping to support gains for major indexes in May after a rough April. Companies in the S&P 500 are mostly finished with their latest results, which show a 5.3% gain in earnings overall.

Stocks were mostly higher in Europe and mixed in Asia. Chinese markets slipped following U.S. plans to raise tariffs on imports from China.

ASX 200 expected to rise
It looks set to be a positive day for the Australian share market on Wednesday following a good session in the United States.

According to the latest SPI futures, the ASX 200 is expected to open the day 36 points or 0.4% higher.

Stocks rose on Wall Street Tuesday, pushing the Nasdaq composite to another record and leaving the S&P 500 sitting just shy of its own all-time high.

The late gains closed out a mostly wobbly day of trading as investors reviewed a mixed report on inflation and await an even more important inflation update on Wednesday. Stocks have been generally gaining ground in May following a dismal April.

The S&P 500 index rose 25.26 points, or 0.5%, to 5,246.68. It is sitting about 0.1% below its record high set in late March. The Dow Jones Industrial Average rose 126.60 points, or 0.3%, to 39,558.11.

 

[bigdog]

Stock market today: Asian shares advance after another round of Wall St records

Asian shares are higher after U.S. stocks rallied to records on hopes that inflation is heading back in the right direction.

apnews.com

Wall Street rallies to records after inflation slows​

By STAN CHOE
Updated 7:15 AM GMT+10, May 16, 2024

NEW YORK (AP) — Hopes that inflation is finally heading back in the right direction swept through Wall Street Wednesday and ignited a record-setting rally for U.S. stocks.

The S&P 500 jumped 1.2% to top its prior high set a month and a half ago. The Nasdaq composite added 1.4% to its own record set a day earlier, and the Dow Jones Industrial Average gained 349 points, or 0.9%, to beat its all-time high set in March.

Relief came from the bond market, where Treasury yields eased to release some of the pressure on the stock market. The moves resulted from strengthening expectations among traders that the Federal Reserve may indeed cut its main interest rate this year.

Stocks that tend to benefit the most from lower interest rates helped lead the market. Homebuilders were strong on hopes that cuts by the Fed could lead to easier mortgage rates, with Lennar, D.R. Horton and PulteGroup all rallying more than 5%. Big Tech and other high-growth stocks also rode the wave of expectations for lower rates, and Nvidia’s gain of 3.6% was the strongest force pushing the S&P 500 upward.

Real-estate stocks in the S&P 500 climbed 1.7%, while stocks of electricity companies and other utilities rose 1.4%. The dividends they pay look better to investors when bonds are paying less in interest.

The optimism came from a report showing U.S. consumers had to pay prices for gasoline, car insurance and everything else in April that were 3.4% higher overall than a year earlier. While that’s painful, it’s not as bad as March’s inflation rate of 3.5%.

Perhaps more importantly, the slowdown was a relief after reports for the consumer price index, or CPI, earlier this year had consistently come in worse than expected. That string of disappointing data had washed out forecasts for the Federal Reserve to lower its main interest rate soon.

The federal funds rate is sitting at its highest level in more than two decades, and a cut would goose investment prices and remove some of the downward pressure on the economy.

“There was a lot lying on today’s CPI print to prove that disinflation was simply delayed these last three months and not derailed,” according to Alexandra Wilson-Elizondo, co-chief investment officer of the multi-asset solutions business in Goldman Sachs Asset Management.

A separate report showed no growth in spending at U.S. retailers in April from March. It was a weaker showing than the 0.4% growth economists expected.

Slowing growth in retail sales could be seen as a positive for markets, because it could reduce the upward pressure on inflation. But a stalling out also raises worries about cracks forming in U.S. consumer spending, which has been one of the main pillars keeping the economy out of a recession. Pressure has grown particularly high on lower-income households.

“Hopefully the consumer isn’t running out of steam, but with pandemic savings spent, rising delinquencies, slower wage growth, and now flat retail sales, a more abrupt slowing of the economy can’t be ruled out,” said Brian Jacobsen, chief economist at Annex Wealth Management.

That could threaten one of the main hopes that’s rallied the U.S. stock market toward its records: The Federal Reserve can pull off the balancing act of slowing the economy enough through high interest rates to stamp out high inflation but not so much that it causes a bad recession.

A separate discouraging report released in the morning, meanwhile, said manufacturing in New York state is contracting more than expected.

On Wall Street, Petco Health + Wellness helped lead the market after soaring 27.9%. It named Glenn Murphy, who is CEO of investment firm FIS Holdings, as its executive chairman.

On the losing end were GameStop and AMC Entertainment, as momentum reversed following their jaw-dropping starts to the week. GameStop fell 18.9%, though it’s still up 126.5% for the week so far.

AMC Entertainment sank 20% after it said it will issue nearly 23.3 million shares of its stock to wipe out $163.9 million in debt.

All told, the S&P 500 rose 61.47 points to 5,308.15. The Dow added 349.89 to 39,908.00, and the Nasdaq jumped 231.21 to 16,742.39.

In the bond market, the yield on the 10-year Treasury eased to 4.34% from 4.45% late Tuesday. The two-year yield, which moves more closely with expectation for Fed action, sank to 4.72% to from 4.82%.

Traders are now forecasting a nearly 95% probability that the Fed cuts its main interest rate at least once this year, according to data from CME Group. That’s up from just below 90% a day before.

In stock markets abroad, Shanghai’s fell 0.8% after China’s central bank left a key lending rate unchanged. Indexes were mixed elsewhere in Asia and modestly higher in Europe.

ASX 200 expected to rise again​

The Australian share market looks set for another good session on Thursday following a strong night on Wall Street after US inflation came in lower than expected.

According to the latest SPI futures, the ASX 200 is expected to open the day 50 points or 0.65% higher this morning.

Hopes that inflation is finally heading back in the right direction swept through Wall Street Wednesday and ignited a record-setting rally for U.S. stocks.

The S&P 500 jumped 1.2% to top its prior high set a month and a half ago. The Nasdaq composite added 1.4% to its own record set a day earlier, and the Dow Jones Industrial Average gained 349 points, or 0.9%, to beat its all-time high set in March.

All told, the S&P 500 rose 61.47 points to 5,308.15. The Dow added 349.89 to 39,908.00, and the Nasdaq jumped 231.21 to 16,742.39.

 

[noirua]

 

[bigdog]

Stock market today: Asian shares retreat after Wall St edges back from records

Asian shares have retreated after U.S. stocks edged back from their record heights. U.S. futures fell and oil prices edged higher.

apnews.com

Wall Street edges back from records after Dow briefly tops 40,000​

By STAN CHOE
Updated 7:31 AM GMT+10, May 17, 2024

NEW YORK (AP) — U.S. stocks edged back from their record heights Thursday after the Dow Jones Industrial Average briefly topped the 40,000 level for the first time.

The Dow slipped 38.62 points, or 0.1%, to 39,869.38. The S&P 500 index, which is much more widely followed on Wall Street, dipped 11.05, or 0.2%, to 5,297.10, and the Nasdaq composite fell 44.07, or 0.3%, to 16,698.32. All three indexes had rallied on Wednesday to all-time highs.

Deere weighed on the market and sank 4.7% despite reporting stronger profit for its latest quarter than expected. It cut its forecast for upcoming profit this fiscal year, below analysts’ estimates, as farmers buy fewer tractors and other equipment.

Homebuilders also helped drag the market lower following a weaker-than-expected report on the housing industry. They gave back some of their big gains from the day before, when hopes for lower mortgage rates had sent them sharply higher. D.R. Horton sank 4.2%, Lennar fell 3.3% and PulteGroup dropped 2.8%.

Also sinking were GameStop and AMC Entertainment, which slid for a second straight day following their jaw-dropping starts to the week. They’ve been moving more on excitement drummed up by investors than any changes to their financial prospects.

GameStop fell 30%, though it’s still up nearly 59% for the week so far. AMC Entertainment lost 15.3%.

Such drops helped offset a 7% jump for Walmart, which reported stronger profit for the latest quarter than analysts expected. The retailer also said its revenue for the year could top the forecasted range it had earlier given.

Walmart’s strength could be an encouraging signal for the broader economy. Worries have been rising about whether U.S. households can keep up with still-high inflation and more expensive credit-card payments, particularly households at the lower end of the income spectrum.

Target, which reports its quarterly results next week, climbed following Walmart’s report, along with other retailers like Dollar General and Dollar Tree. Each added at least 2%.

Chubb rose 4.7% after Warren Buffett’s Berkshire Hathaway disclosed it had built an ownership stake in the insurer.

Under Armour swung between losses and gains after it warned that its revenue will be likely down by “a low double-digit percentage rate” this upcoming fiscal year, citing weaker demand from wholesalers and “inconsistent execution across our business.”

The company announced a restructuring plan to cut costs and also announced a program to buy back up to $500 million of its stock. It dropped 1.3%.

Stronger-than-expected profit reports have been one of the main reasons U.S. stock indexes have broadly jumped through May to records following a tough April. Another has been revived hopes that the Federal Reserve will be able to cut its main interest rate at least once this year. The Fed has been keeping its federal funds rate at the highest level in more than two decades.

A string of worse-than-expected reports on inflation at the start of the year had put the potential for such cuts in jeopardy, but some more encouraging data has since arrived.

Treasury yields have largely eased in May as hopes rose that the economy could hit the hoped-for sweet spot, where it cools enough because of high interest rates to stifle inflation but not so much that it causes a bad recession.

Yields rose Thursday following some mixed data on the economy, including the report that hurt homebuilder stocks, which showed the industry broke ground on fewer projects than expected.

One report showed slightly more workers applied for unemployment benefits last week than economists expected, though the number remains low compared with history. Others said manufacturing growth in the mid-Atlantic region was weaker than hoped and import prices rose more than forecast.

“Today’s numbers were in line with the overall theme of the week — nothing dramatic, but showing signs of a steady-to-cooling economy,” said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.

The yield on the 10-year Treasury climbed to 4.38% from 4.35% late Wednesday. The two-year yield, which moves more closely with expectations for action by the Fed, rose to 4.79% from 4.72%.

In stock markets abroad, indexes were modestly lower in much of Europe after mostly rising in Asia. Hong Kong’s Hang Seng jumped 1.6% after reopening following a holiday, while Japan’s Nikkei 225 rose 1.4%.

ASX 200 poised to fall​

The Australian share market looks set to end the week in the red following a subdued session on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open 44 points or 0.6% lower this morning.

U.S. stocks edged back from their record heights Thursday after the Dow Jones Industrial Average briefly topped the 40,000 level for the first time.

The Dow slipped 38.62 points, or 0.1%, to 39,869.38. The S&P 500 index, which is much more widely followed on Wall Street, dipped 11.05, or 0.2%, to 5,297.10, and the Nasdaq composite fell 44.07, or 0.3%, to 16,698.32. All three indexes had rallied on Wednesday to all-time highs.

 

[bigdog]

The Dow closed above 40,000 for the first time. The number is big but means little for your 401(k)

Through its long history, the Dow Jones Industrial Average has offered a way for people to get a quick read on how Wall Street is doing.

apnews.com

The Dow closed above 40,000 for the first time. The number is big but means little for your 401(k)​

By STAN CHOE
Updated 6:54 AM GMT+10, May 18, 2024

NEW YORK (AP) — The Dow Jones Industrial Average just closed above 40,000 for the first time, the latest pop in what’s been a surprisingly good year for Wall Street.

But just like New Year’s represents an arbitrary point in time in the Earth’s revolution around the sun, such milestones for the Dow don’t mean much inherently.

For one, with just 30 companies, the Dow represents a tiny slice of Corporate America. For another, almost no one’s 401(k) account sees its performance depend on the Dow, which has become more of a relic used for historical comparisons.

What’s more important is that the Dow at 40,000 is one example of how the broader U.S. stock market is setting records.

Here’s a look at what the Dow is, how it got here and how its use among investors is on the wane:

WHAT IS THE DOW?
It’s a measure of 30 established, well-known companies. These stocks are sometimes known as “blue chips,” which are supposed to be on the steadier and safer side of Wall Street.

WHAT’S IN THE DOW?
Not just industrial companies like Caterpillar and Honeywell, despite the name.

The roster has changed many times since the Dow began in 1896 as the U.S. economy has transformed. Out, for example, was Standard Rope & Twine, and in recently have been big technology companies.

Apple, Intel and Microsoft are some of the newer-economy names currently in the Dow. The financial industry also has a healthy representation with American Express, Goldman Sachs, JPMorgan Chase and Travelers. So does health care with Amgen, Johnson & Johnson, Merck and UnitedHealth Group.

WHAT’S ALL THE HUBBUB NOW?
The Dow crossed its latest 10,000 point threshold briefly on Thursday and closed above 40,000 Friday — at 40,003.59 to be exact. It took about three and a half years to make the leap from 30,000 points, which it first crossed in November 2020.

It’s kept chugging mostly higher despite the worst inflation in decades, painfully high interest rates meant to get inflation under control and worries that high rates would make a recession inevitable for the U.S. economy.

Companies are now in the midst of reporting their best profit growth in nearly two years, and the economy has managed to avoid a recession, at least so far.

IS THE DOW THE MAIN MEASURE OF WALL STREET?
No. The Dow represents only a narrow slice of the economy. Professional investors tend to look at broader measures of the market, such as the S&P 500 index, which has nearly 17 times the number of companies within it.

More than $11.2 trillion in investments were benchmarked to the S&P 500 at the end of 2019, according to estimates from S&P Dow Jones Indices. That’s 350 times more than the $32 billion benchmarked to the Dow Jones Industrial Average.

Investors’ 401(k) accounts are much more likely to include an S&P 500 index fund than anything tied to the Dow. The S&P 500 crossed above its own milestone Wednesday, topping 5,300 points for the first time.

That’s what more investors care about. Well, 100-point milestones matter for the S&P 500 as little as others, but the fact that the S&P 500 is higher than ever matters a lot.

HOW DIFFERENT ARE THE DOW AND THE S&P 500?
Their performances have historically tracked relatively closely with each other, but the S&P 500 has been better recently. Its 27.5% rise for the last 12 months easily tops the 19.7% gain for the Dow.

That’s in part because the S&P 500 has more of an emphasis on Big Tech stocks, which were responsible for most of the S&P 500’s gains last year. Hopes for an easing of interest rates by the Federal Reserve and a frenzy around artificial-intelligence technology have pushed them to dizzying heights.

The Dow reflects none of the movements of such marquee stocks as Alphabet, Meta Platforms or Nvidia.

IS THAT IT?
No, the Dow and S&P 500 also take different approaches to measuring how an index should move.

The Dow gives more weight to stocks with higher price tags. That means stocks that add or subtract more dollars to their stock price push and pull it the most, such as UnitedHealth Group and its $525 stock price. A 1% move for that stock, which is about $5, packs a radically harder punch than a 1% move for Walmart, which is about 64 cents

The S&P 500, meanwhile, gives more weight to stocks depending on their overall size. That means a 1% move for Walmart carries more weight than a 1% move for UnitedHealth Group because Walmart is a slightly bigger company by total market value.

SO WHY CARE ABOUT THE DOW?
Because it’s so old, it has a longer track record than other measures of the market.

For a while, a triple-digit move for the Dow also offered an easy shorthand way to show the stock market was having a big day. Now, though, it means much less. A 100 point swing for the Dow means a move of less than 0.3%.

Stock market today: Dow finishes above 40,000 to cap Wall Street’s latest winning week

The Dow Jones Industrial Average finished a day above the 40,000 level for the first time as U.S. stock indexes drifted around their record heights to close their latest winning week.

apnews.com

Dow finishes above 40,000 to cap Wall Street’s latest winning week​

By STAN CHOE
Updated 7:36 AM GMT+10, May 18, 2024

NEW YORK (AP) — The Dow Jones Industrial Average finished a day above the 40,000 level for the first time on Friday as U.S. stock indexes drifted around their records while closing out their latest winning week.

The Dow rose 134.21 points, or 0.3%, to 40,003.59, a day after briefly topping the 40,000 level for the first time. It and other indexes on Wall Street have been climbing since the autumn of 2022 as the U.S. economy and corporate profits have managed to hold up despite high inflation, the punishing effects of high interest rates and worries about a recession that seemed inevitable but hasn’t arrived.

The S&P 500, which is the much more important index for Wall Street and most retirement savers, added 6.17 points, or 0.1%, to 5,303.27. It finished just 0.1% shy of its record set on Wednesday and closed out a fourth straight week of gains. The Nasdaq composite slipped 12.35 points, or 0.1%, to 16,685.97.

Despite the placid movements for indexes, some feverish action was roiling underneath. Reddit jumped 10% after announcing a partnership where OpenAI will bring the social-media company’s content to ChatGPT and become an advertising partner, among other things. Wall Street’s frenzy around artificial-intelligence technology has continued to build despite some warnings of a potential bubble.

On the losing end were GameStop and AMC Entertainment, which gave back more of their massive gains from the beginning of the week.

GameStop dropped 19.7% to trim its gain for the week to 27.2% after it said it expects to report a loss of up to $37 million for the three months through May 4. It also said it could sell up to 45 million shares of stock in order to raise cash.

Such moves can dilute the holdings of current shareholders, and it followed a similar move by AMC Entertainment. After the movie-theater chain’s stock price also got caught up in a rocket ride upward, AMC said earlier this week it would issue nearly 23.3 million shares of stock to wipe out some debt.

Much of the whipsaw action for it and GameStop was due to enthusiasm among investors, not because of fundamental changes to their profit prospects. Not all of those were necessarily smaller-pocketed investors buying on their phones. Renaissance Technologies, the hedge fund founded by pioneering investor Jim Simons, revealed that it bought shares of both GameStop and AMC Entertainment before the end of March, though it may no longer still own them.

Elsewhere in financial markets, Treasury yields ticked higher, and stock indexes around the world were mixed.

This week was a good one for markets broadly after a report rekindled hopes that inflation is finally heading back in the right direction after a discouraging start to the year. That in turn revived hopes for the Federal Reserve to cut its main interest rate at least once this year.

The federal funds rate is sitting at its highest level in more than two decades, and a cut would goose investment prices and remove some of the downward pressure on the economy.

The hope is that the Fed can pull off the balancing act of slowing the economy enough through high interest rates to stamp out high inflation but not so much that it causes a bad recession.

Of course, now that a growing percentage of traders are betting on the Fed cutting rates two times this year, if not more, some economists are cautioning the optimism may be going too far. It’s something that happens often on Wall Street.

While data reports recently have been better than forecast, “better than expected doesn’t mean good,” economists at Bank of America wrote in a BofA Global Research report.

Inflation is still higher than the Fed would like, and Bank of America’s Michael Gapen still expects the Fed to hold its main interest rate steady until cutting in December.

In the bond market, the yield on the 10-year Treasury rose to 4.41% from 4.38% late Thursday. The two-year yield, which more closely tracks expectations for the Fed, edged up to 4.82% from 4.80%.

In stock markets abroad, indexes jumped 1% in Shanghai and 0.9% in Hong Kong after China’s central bank announced moves to bolster its struggling property market. It reduced required down payments for housing loans and cut interest rates for first and second home purchases, among other moves.

Indexes fell in Seoul, Tokyo and across much of Europe.

 

[bigdog]

ASX 200 expected to rebound​

The Australian share market looks set to rebound on Monday following a relatively positive finish on Wall Street on Friday.

According to the latest SPI futures, the ASX 200 is expected to open the day 35 points or 0.45% higher.

On Friday in the United States, the Dow Jones Industrial Average finished a day above the 40,000 level for the first time on Friday as U.S. stock indexes drifted around their records while closing out their latest winning week.

The Dow rose 134.21 points, or 0.3%, to 40,003.59, a day after briefly topping the 40,000 level for the first time.

Market Watch

 

[bigdog]

Stock market today: Asian shares mostly decline after Nasdaq ticks to a record high

Asian shares are mostly lower even as most U.S. stock indexes finished higher, especially technology issues like Nvidia.

apnews.com

Nasdaq composite ticks higher to a record after a quiet day on Wall Street​

By STAN CHOE
Updated 7:05 AM GMT+10, May 21, 2024

NEW YORK (AP) — Most U.S. stock indexes edged higher after a quiet day of mixed trading Monday following their latest winning week.

The S&P 500 rose 4.86 points, or 0.1%, to 5,308.13 and pulled within 0.02 of its record set last week. The Nasdaq composite gained 108.91, or 0.7%, to 16,794.87 to set its own all-time high.

The Dow Jones Industrial Average was the laggard. It slipped 196.82 points, or 0.5%, to 39,806.77 in its first trading after closing above the 40,000 level for the first time on Friday.

Norwegian Cruise Line helped lead the market and steamed 7.6% higher after giving financial forecasts for the year that topped analysts’ expectations. It said demand is growing for cruises, and some of its competitors gained in its wake. Carnival rose 7.3%, and Royal Caribbean Group gained 4.1%.

All three of the big U.S. stock indexes set records last week in large part because of revived hopes that the Federal Reserve will be able to cut interest rates this year as inflation hopefully cools. More reports showing big U.S. companies are earning fatter profits than expected also boosted stock prices.

This upcoming week has few top-tier economic reports, like last week’s headliner that showed inflation may finally be heading back in the right direction following a discouraging start to the year. But some potentially market-moving reports on corporate profits are on the calendar.

Atop them all is Nvidia, whose rocket ride amid a frenzy around artificial-intelligence technology has been a major reason for the S&P 500’s gains over the last year. It will report its latest quarterly results on Wednesday, and expectations are high. Analysts are forecasting its revenue more than tripled to $24.59 billion from a year earlier.

Its stock climbed 2.5% to bring its gain for the year so far to 91.4%.

Several retailers are also on the schedule, including Lowe’s on Tuesday, Target on Wednesday and Ross Stores on Thursday. They could offer more details on how well spending by U.S. households is holding up. Pressure has been rising on them amid still-high inflation, even if it’s not as bad as before, and cracks seem to be most visible among the lowest-income customers.

Target sank 2.1% after it said Monday it would cut prices on thousands of everyday essentials, such as milk and diapers, in an acknowledgment of how customers are looking for relief from higher prices.

In the oil market, crude prices eased modestly. They erased earlier gains from overnight trading following the death of Iran’s president in a helicopter crash.

In the bond market, yields ticked a bit higher. The yield on the 10-year Treasury rose to 4.44% from 4.42% late Friday. The two-year yield, which more closely tracks expectations for Fed action, ticked up to 4.84% from 4.83%.

The Federal Reserve on Wednesday will release the minutes from its latest meeting, where it again held its main interest rate at the highest level in more than two decades. The hope is that the Fed can manage the delicate balancing act of grinding down the economy through high interest rates by just enough to get inflation under control but not so much that it causes a painful recession.

Traders are putting an 88% probability on the Fed cutting its main interest rate at least once this year, according to data from CME Group.

“The better reading for April is encouraging,” Fed Vice Chair Philip Jefferson said about the most recent inflation data in a speech Monday before the Mortgage Bankers Association. But he also said inflation has been declining “nowhere near as quickly as I would have liked.”

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

ASX 200 expected to edge lower

The Australian share market looks set to edge lower 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 9 points or 0.1% lower.

Most U.S. stock indexes edged higher after a quiet day of mixed trading Monday following their latest winning week.

The S&P 500 rose 4.86 points, or 0.1%, to 5,308.13 and pulled within 0.02 of its record set last week. The Nasdaq composite gained 108.91, or 0.7%, to 16,794.87 to set its own all-time high.

The Dow Jones Industrial Average was the laggard. It slipped 196.82 points, or 0.5%, to 39,806.77 in its first trading after closing above the 40,000 level for the first time on Friday.

 

[bigdog]

Stock market today: Asian shares mostly higher after Wall Street sets more records

Asian markets are mixed in quiet trading, with most of the regions’ benchmarks inching higher after U.S. stocks hit new record highs.

apnews.com

Wall Street drifts higher to set more records​

By STAN CHOE
Updated 7:16 AM GMT+10, May 22, 2024

NEW YORK (AP) — U.S. stock indexes drifted higher Tuesday to set more records following another quiet day of trading.

The S&P 500 rose 13.28 points, or 0.3%, to 5,321.41 and surpassed its record set last week. The Nasdaq composite added 37.75, or 0.2%, to 16,832.62, a day after setting its latest all-time high. The Dow Jones Industrial Average rose 66.22, or 0.2%, to 39,872.99 and is sitting just below its high set last week.

Indexes have climbed to records recently largely on expectations for the Federal Reserve to cut interest rates later this year as inflation hopefully cools. More reports showing big U.S. companies earning fatter profits than expected have also boosted the market.

Macy’s joined the chorus line of companies delivering a stronger profit for the latest quarter than analysts expected, and its stock jumped 5.1% following some early fluctuations. The company, which runs Bloomingdale’s in addition to its namesake stores, raised the bottom ends of its forecasts for upcoming sales and profit.

Lam Research also helped support the market after the supplier for the semiconductor industry announced a program to buy back up to $10 billion of its own stock. The company said it will undergo a 10-for-one stock split, which would bring down each share’s price and make it more affordable to more investors. Its stock rose 2.3%.

That helped offset a 3.7% drop for Palo Alto Networks. The cybersecurity company delivered a better profit report than expected, but it gave a forecasted range for revenue in the current quarter whose midpoint was a hair below analysts’ expectations.

Trump Media & Technology Group, the company behind Donald Trump’s Truth Social network, sank 8.7% after disclosing a net loss of $327.6 million in its first quarterly report as a publicly traded company.

Lowe’s fell 1.9% despite reporting better results for the latest quarter than analysts had feared. It said it’s maintaining its forecast for revenue this year, including a dip of up to 3% for an important underlying sales figure as high interest rates keep a lid on customer activity.

Rates for mortgages, credit cards and other payments have become more expensive because the Federal Reserve has been keeping its main interest rate at the highest level in more than two decades. It’s trying to pull off a tightrope walk where it grinds down on the economy just enough through high interest rates to snuff out high inflation but not so much that it causes a painful recession.

An encouraging report released last week showing inflation may finally be heading back in the right direction following a discouraging start to the year raised hopes that such a “soft landing” for the economy may be possible. It also strengthened hopes that the Federal Reserve will cut its main interest rate once or twice this year.

A top Fed official, Gov. Christopher Waller, said in a speech Tuesday that he’s expecting to see moderation in economic data after reports recently came in weaker than expected on sales at U.S. retailers and on the strength of U.S. services businesses. That in turn should help put downward pressure on inflation.

But he said that he would “need to see several more months of good inflation data before I would be comfortable supporting an easing in the stance of monetary policy,” unless the job market weakened significantly before then.

Hopes for coming cuts to rates have sent Treasury yields lower, which eases the pressure on the stock market. The yield on the 10-year Treasury slipped to 4.41% from 4.48% late Monday. The two-year yield, which more closely tracks expectations for Fed actions, slipped to 4.83% from 4.85%.

This week doesn’t have many top-tier economic reports, and the biggest potential for sharp moves in the market will likely come from upcoming profit reports.

The week’s headliner is Nvidia, whose stock has rocketed higher amid a frenzy around artificial-intelligence technology. It will report its latest quarterly results on Wednesday, and expectations are high.

Target also reports on Wednesday with Ross Stores following Thursday. They could offer more details on how well spending by U.S. households is holding up. Pressure has been rising on them amid still-high inflation, and it seems to be the highest on the lowest-income customers.

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

Indexes fell 2.1% in Hong Kong and 0.4% in Shanghai after S&P Global Market Intelligence raised its forecast for Chinese economic growth this year to 4.8% from 4.7% in April, but stressed it was not overly optimistic.

“The overall outlook of a tepid economic recovery remains unchanged, with the expansion supported by enhanced policy stimulus, strengthening external demand and gradually improving private-sector confidence,” it said in a report.

ASX 200 expected to rise​

It looks set to be a better day for the Australian share market on Wednesday following a good session in the United States.

According to the latest SPI futures, the ASX 200 is expected to open the day 21 points or 0.25% higher.

On Wall Street, U.S. stock indexes drifted higher Tuesday to set more records following another quiet day of trading.

The S&P 500 rose 13.28 points, or 0.3%, to 5,321.41 and surpassed its record set last week. The Nasdaq composite added 37.75, or 0.2%, to 16,832.62, a day after setting its latest all-time high. The Dow Jones Industrial Average rose 66.22, or 0.2%, to 39,872.99 and is sitting just below its high set last week.

Indexes have climbed to records recently largely on expectations for the Federal Reserve to cut interest rates later this year as inflation hopefully cools. More reports showing big U.S. companies earning fatter profits than expected have also boosted the market.