NYSE Dow Jones finished today at:

[bigdog]

Stock market today: Asian shares mostly rise, boosted by Wall Street records as Tesla zooms

Asian shares are trading mostly higher after Tesla zoomed higher and helped drive the U.S. stock market to more records.

apnews.com

Wall Street hits more records as Tesla zooms​

By STAN CHOE
Updated 6:26 AM GMT+10, July 3, 2024

NEW YORK (AP) — Tesla zoomed higher and helped drive the U.S. stock market to more records on Tuesday.

The S&P 500 added 0.6% to top its all-time high set two weeks ago. The Dow Jones Industrial Average rose 162 points, or 0.4%, and the Nasdaq composite added 0.8% to its own record set a day before.

Tesla led the way with a 10.2% jump after the electric-vehicle maker reported a milder drop in sales for the spring than analysts expected. Modest gains for other big, influential stocks also helped lift the market, including a 1.6% climb for Apple.

Stocks got a lift from easing Treasury yields after the head of the Federal Reserve made comments that investors took as a signal for possible cuts to interest rates later this year. Fed Chair Jerome Powell, whose utterances are always finely parsed for hints about rates, gave a nod to improvements in inflation data after some disappointingly high readings early in the year.

“We just want to understand that the levels that we’re seeing are a true reading of underlying inflation,” he said.

The hope on Wall Street is that inflation will slow enough to convince the Fed to lower its main interest rate, which has been sitting at its highest level in more than two decades and pressing the brakes on the economy. Treasury yields have largely been easing since April on hopes for such cuts.

A report on Tuesday may have hindered those hopes, though. It showed U.S. employers were advertising more job openings at the end of May than economists expected and slightly more than April’s tally. While plentiful job openings are great news for workers, the fear on Wall Street is that too strong of a job market will put upward pressure on inflation and force delays to rate cuts.

After swinging lower following Powell’s comments, Treasury yields pared their losses following the report on job openings. The yield on the 10-year Treasury was sitting at 4.42%, compared with 4.46% late Monday.

The week’s most anticipated economic data will arrive on Friday, when the U.S. government reports how many jobs employers added in total during June. Before then, the U.S. stock market will have a shortened trading day on Wednesday and a holiday on Thursday for the Fourth of July.

Treasury yields have been feeling some upward pressure recently because of politics. Last week’s debate between President Joe Biden and former President Donald Trump pushed traders to make moves in anticipation of a possible Republican sweep in November. That included sending Treasury yields higher, in part because of the possibility for policies that would further raise the U.S. government’s debt.

The 10-year yield is still well above its 4.29% level from late Thursday, before the debate.

In commodities markets, the price of benchmark U.S. oil ended up slipping modestly after touching its highest price since April earlier in the morning.

Crude prices have largely been rising on expectations for strong demand during the summer, as well as the possibility of hurricanes damaging oil production in the Gulf of Mexico. Hurricane Beryl is roaring through the Caribbean.

Tuesday’s drop for crude sent stocks of oil-and-gas producers lower, and Exxon Mobil dipped 0.7%.

Also keeping Wall Street’s gains in check was Nvidia, which has been one of this year’s brightest stars. It fell 1.3%, though it’s still up nearly 147.7% for the year so far.

Eli Lilly fell 0.8%, and U.S.-listed shares of Novo Nordisk dropped 1.7% after President Biden criticized in an opinion piece for USA Today how much the companies are charging for their drugs for weight loss and diabetes.

All told, the S&P 500 rose 33.92 points to 5,509.01. The Dow gained 162.33 to 39,331.85, and the Nasdaq composite climbed 149.46 to 18,028.76.

In stock markets abroad, European indexes fell after a report showed inflation in the region remains stuck above a level that the European Central Bank is hoping for. Germany’s DAX lost 0.7%, and France’s CAC 40 fell 0.3%.

A day earlier, French stocks had rallied after election results suggested a far-right political party may not win a decisive majority in the country’s legislative elections. That raised the possibility of gridlock in the French government, which would prevent a worst-case scenario where a far-right with a clear majority could push policies that would greatly increase the French government’s debt.

This is a big year for elections worldwide, with voters in the United Kingdom heading to the polls later this week

In Asia, Japan’s Nikkei 225 rose 1.1% after the value of the Japanese yen again neared a 38-year low. When the yen is weak, it can boost the fortunes of Japanese exporters.

ASX 200 expected to rebound​

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

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

Tesla zoomed higher and helped drive the U.S. stock market to more records on Tuesday.

The S&P 500 added 0.6% to top its all-time high set two weeks ago. The Dow Jones Industrial Average rose 162 points, or 0.4%, and the Nasdaq composite added 0.8% to its own record set a day before.

All told, the S&P 500 rose 33.92 points to 5,509.01. The Dow gained 162.33 to 39,331.85, and the Nasdaq composite climbed 149.46 to 18,028.76.

 

[bigdog]

NYSE Fourth of July holiday tomorrow Thursday

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

Shares are mostly higher in Asia after Wall Street's record-breaking rally powered on. Shares fell in Chinese markets but rose in the rest of the region.

apnews.com

Wall Street hits records as a slowing economy boosts hopes for lower rates​

By STAN CHOE
Updated 1:40 AM GMT+7, July 4, 2024

NEW YORK (AP) — Wall Street’s record-breaking rally kept going Wednesday after weak reports on the U.S. economy kept the door open for possible cuts to interest rates.

The S&P 500 rose 0.5% to set an all-time high for a second straight day and for the 33rd time this year. The Dow Jones Industrial Average slipped 23 points, or 0.1%, while the Nasdaq composite added 0.9% to its record set the day before. Trading ended early for the day ahead of the Fourth of July holiday.

Tesla again helped boost the market and rose 6.5% a day after reporting a milder drop in sales for the spring than analysts feared. It was one of the strongest forces pushing upward on the S&P 500, along with Nvidia. The darling of Wall Street’s rush into artificial-intelligence technology climbed 4.6% to bring the chip company’s gain for the year so far to 159%.

The action was stronger in the bond market, where Treasury yields slid following a flurry of reports that came in weaker than expected on both the job market and U.S. services companies. The data could keep the Federal Reserve on course to deliver the cuts to interest rates later this year that Wall Street desires.

One report said activity for businesses in the real estate, retail trade and other U.S. services industries contracted in June for just the third time in 49 months. The reading was weaker than economists’ forecasts, which called for just a slowing of growth. Perhaps more importantly for Wall Street, the report from the Institute Supply Management also said prices were increasing at a slower pace.

That followed reports from earlier in the morning showing a slowing job market. One said slightly more U.S. workers applied for unemployment benefits last week than economists expected, though the number remains low compared with history. Another from ADP indicated employers outside the government slowed their hiring last month, when economists were forecasting an acceleration.

The hope on Wall Street is that the economy will soften by just the right amount: enough to keep a lid on upward pressure on inflation, but not so much that it throws workers out of their jobs and triggers a recession. A much more anticipated report will arrive on Friday, when the U.S. government will give its comprehensive update about how many workers employers added to their payrolls during June.

The yield on the 10-year Treasury dropped to 4.35% from 4.44% late Tuesday, a notable move for the bond market, and much of the slide came after the report on U.S. services businesses. It’s been generally sinking since April on hopes that inflation is slowing enough to get the Federal Reserve to lower its main interest rate from the highest level in more than two decades.

Wednesday’s move erased some of a recent recovery for yields. Last week’s debate between President Joe Biden and former President Donald Trump pushed some traders to make moves in anticipation of a Republican sweep in November, which would raise the possibility of tax cuts and other policies that could cause the U.S. government’s debt to swell

The two-year Treasury yield, which more closely tracks expectations for Fed actions, fell to 4.70% from 4.75% late Tuesday. Traders are now betting on a nearly three-in-four chance that the Federal Reserve will cut its main interest rate as soon as September, according to data from CME Group.

On Wall Street, Constellation Brands sank 3.3% after swinging between gains and losses during the day. The company behind Modelo beer and Robert Mondavi wines reported stronger profit for the latest quarter than expected, but its revenue came up just shy of financial analysts’ forecasts.

All told, the S&P 500 rose 28.01 points to 5,537.02. The Dow dipped 23.85 to 39,308.00, and the Nasdaq composite gained 159.54 to 18,188.30.

This is a traditionally strong time of year for Wall Street, according to Mark Hackett, Nationwide’s chief of investment research. He said the first half of July has been the best two-week stretch for stocks on the calendar since 1928, and the S&P 500 has risen in July for nine straight years.

Even though discouraging reports have shown lower-income U.S. households are struggling to keep up with still-high inflation, “the glass-half-full mindset of investors continues to drive markets higher,” Hackett said.

In stock markets abroad, indexes rose across much of Europe and Asia. France’s CAC 40 climbed 1.2% to recover more of its losses caused by worries that a swing away from centrist government policies could lead to higher debt for the French government.

The FTSE 100 rose 0.6% in London ahead of an upcoming election in the United Kingdom, while Tokyo’s Nikkei 225 jumped 1.3%.

ASX 200 expected to jump​

The Australian share market looks set to jump on Thursday following a decent night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 73 points or 0.95% higher this morning.

Wall Street’s record-breaking rally kept going Wednesday after weak reports on the U.S. economy kept the door open for possible cuts to interest rates.

The S&P 500 rose 0.5% to set an all-time high for a second straight day and for the 33rd time this year. The Dow Jones Industrial Average slipped 23 points, or 0.1%, while the Nasdaq composite added 0.9% to its record set the day before. Trading ended early for the day ahead of the Fourth of July holiday.

All told, the S&P 500 rose 28.01 points to 5,537.02. The Dow dipped 23.85 to 39,308.00, and the Nasdaq composite gained 159.54 to 18,188.30.

 

[bigdog]

NYSE Fourth of July holiday closed Thursday

Stock market today: Japan's Nikkei 225 hits new record close, as other world markets advance

Japan's benchmark Nikkei 225 has surged to a record close of 40,913.65, while most other major world markets also advanced.

apnews.com

Japan’s Nikkei 225 hits new record close, as other world markets advance​

By ELAINE KURTENBACH
Updated 5:28 PM GMT+7, July 4, 2024

BANGKOK (AP) — Japan’s benchmark Nikkei 225 surged Thursday to a record close of 40,913.65, while most other major world markets also advanced.

Investors worldwide are keen to see the Federal Reserve cut rates that it has been keeping at two-decade highs to slow growth and tame inflation, and hopes have been reviving that price pressures are easing enough to make that possible.

In early European trading, Germany’s DAX rose 0.2% to 18,586.00 and the CAC 40 in Paris gained 0.8% to 7,694.52.

In London, the FTSE 100 was up 0.7% at 8,228.90. British voters were choosing a new government in a parliamentary election Thursday that is widely expected to bring the opposition Labour Party to power.

The future for the S&P 500 was up 0.1% while that for the Dow Jones Industrial Average gained 0.2%.

The Nikkei 225 gained 0.8% to 40,913.65, with buying of automakers’ shares and other export oriented stocks pushing the benchmark to an all-time high. The Nikkei 225’s all-time high during intraday trading is 41,087.75, on March 22. Its previous record close was 40,888.43, also set on March 22.

Toyota Motor Corp.’s shares jumped 2% and Honda Motor Co. climbed 3%. Nissan Motor Corp. rallied 4.5% and shares in computer testing equipment maker Advantest Corp. gained 2.1%.

Investors have piled into the Japanese market partly due to the cheapness of the Japanese yen, which is trading at 34-year lows against the dollar. A weak yen tends to push the profits of exporters higher when they are repatriated to Japan.

Changes in regulations on investment accounts have also boosted share purchases.

The Nikkei 225 index has gained 22.4% so far this year. The index surged in the late 1980s during Japan’s bubble economy, when asset prices soared. But it collapsed when that financial bubble imploded in early 1990.
Elsewhere in Asia, Hong Kong’s Hang Seng recovered from early losses, rising 0.3% to 18,028.28, and the Shanghai Composite index shed 0.8% to 2,957.57.

Taiwan’s Taiex jumped 1.5% as chip maker and market heavyweight Taiwan Semiconductor Manufacturing Corp. gained 2.7%.

In Australia, the S&P/ASX 200 surged 1.2% to 7,831.80, while the Kospi in Seoul advanced 1.1% to 2,824.94.

Bangkok’s SET picked up 0.5%.

On Wednesday, U.S. stocks kept rising in a holiday-shortened session after weak reports on the economy kept the door open for possible cuts to interest rates.

U.S. markets are closed Thursday for the Independence Day holiday.

On Wednesday, the S&P 500 rose 0.5% to set an all-time high for a second straight day and for the 33rd time this year. It closed at 5,537.02. The Dow dipped 0.1% to 39,308.00, and the Nasdaq composite gained 0.9% to 18,188.30.

The hope on Wall Street is that the economy will soften by just enough to keep a lid on upward pressure on inflation, but not so much that it throws workers out of their jobs and triggers a recession.

A much more anticipated report will arrive on Friday, when the U.S. government will give its comprehensive update about how many workers employers added to their payrolls during June.

The yield on the 10-year Treasury dropped to 4.35% from 4.44% late Tuesday, a notable move for the bond market, and much of the slide came after the report on U.S. services businesses. It’s been generally sinking since April on hopes that inflation is slowing enough to get the Federal Reserve to lower its main interest rate from the highest level in more than two decades.

In other dealings early Thursday, U.S. benchmark crude oil gave up 41 cents to $83.47 per barrel in electronic trading on the New York Mercantile Exchange.

Brent crude, the international standard, lost 35 cents to $86.99 per barrel.

The U.S. dollar fell to 161.23 Japanese yen from 161.67 yen, reflecting expectations that U.S. interest rate cuts might narrow the gap in rates with Japan, where the benchmark lending rate is near zero.

The euro rose to $1.0799 from $1.0787.

ASX 200 to edge lower​

The Australian share market looks set to end the week on a subdued note despite a positive session in Europe.

According to the latest SPI futures, the ASX 200 is expected to open 11 points or 0.1% lower this morning.

Wall Street was closed for Independence Day, but the FTSE rose 0.85% and the DAX climbed 0.4%.


NYSE Closed Thursday closed

Rest of World open

ASX futures down 11 points or 0.1% to 7805 at 6.33am AEST

 

[bigdog]

Stock market today: Wall Street's scorching rally sets more records as hopes rise for rate cuts

U.S. stocks rose to more records after a report on the job market bolstered hopes that interest rates may soon get easier.

apnews.com

Wall Street’s scorching rally sets more records as hopes rise for rate cuts​

By STAN CHOE
Updated 3:25 AM GMT+7, July 6, 2024

NEW YORK (AP) — U.S. stocks rose to more records Friday after a highly anticipated report on the job market bolstered Wall Street’s hopes that interest rates may soon get easier.

The S&P 500 climbed 0.5% to set an all-time high for a third straight day following Thursday’s pause in trading for the Fourth of July holiday. The index has already set 34 records and climbed close to 17% this year, which is only a little more than halfway done.

The Dow Jones Industrial Average rose 67 points, or 0.2%, while the Nasdaq composite added 0.9% to its own record.

The action was more decisive in the bond market, where Treasury yields sank following the U.S. jobs report. Employers hired more workers last month than economists expected, but the number was still a slowdown from May’s hiring. Plus, the unemployment rate unexpectedly ticked higher, growth for workers’ wages slowed and the U.S. government said hiring in earlier months was lower than previously indicated.

Altogether, the data reinforced belief on Wall Street that the U.S. economy’s growth is slowing under the weight of high interest rates. That’s precisely what investors want to see, because a slowdown would keep a lid on inflation and could push the Federal Reserve to begin cutting its main interest rate from the highest level in two decades.

The question is whether the economy can remain in this Goldilocks state of not too hot and not too cold, while the Federal Reserve times its next moves precisely. The hope is that the Fed will lower interest rates early and significantly enough to keep the economic slowdown from sliding into a recession, but not so much that it allows inflation to regain strength and take off again.

The clearest takeaway from the jobs report for financial markets was that it keeps the Fed on track to cut its main interest rate later this year, likely in September and perhaps again in December. The two-year Treasury yield, which closely tracks expectations for Fed action, fell to 4.60% from 4.71% late Wednesday.

The yield on the 10-year Treasury, which is the centerpiece of the bond market, fell to 4.27% from 4.36% late Wednesday and from 4.70% in April. That’s a notable move for the bond market and offers support for stock prices.

Friday’s jobs report follows a mass of data showing a slowdown across the U.S. economy. Reports earlier this week said business activity in both the U.S. services and manufacturing sectors contracted last month, turning in weaker readings than economists expected. And U.S. shoppers at the lower end of the income spectrum have been showing how difficult it is to keep up with still-rising prices, as balances owed on credit cards swell.

“What matters for long-term investors is whether fears of a recession become a reality,” said Brian Jacobsen, chief economist at Annex Wealth Management. “We think it’s unlikely we’ll see a recession this year or next, but that doesn’t mean the markets won’t fear one.”

On Wall Street, gold miner Newmont rose 2.4% for one of the larger gains in the S&P 500. It benefited from a rise in the price of gold, which usually strengthens when interest rates fall. It’s the flip side of when rates are rising and bonds are paying higher yields, which can pull investors away from gold because it pays its holders nothing.

Gains for some big, influential stocks also helped support the market, even though the majority of stocks within the S&P 500 fell. Meta Platforms jumped 5.9%, and Apple added 2.2%.

Amazon rose 1.2% after the announcement of a deal where the parent company of Saks Fifth Avenue will buy Neiman Marcus Group for $2.65 billion. Amazon will hold a minority stake in the combined company.

On the losing end of Wall Street were companies tied closely to cryptocurrency activity, as bitcoin briefly tumbled below $54,000 from nearly $63,000 early this week before recovering a bit. The cryptocurrency’s value fell roughly back to where it was in February.

Coinbase Global slipped 0.6%, and Robinhood Markets fell 1%.

All told, the S&P 500 rose 30.17 points to 5,567.19. The Dow Jones Industrial Average added 67.87 to 39,375.87, and the Nasdaq composite gained 164.46 to 18,352.76.

In stock markets abroad, London’s FTSE 100 fell 0.5% after U.K. voters ushered in a new regime by throwing out Conservatives in this week’s national election.

The United Kingdom experienced a run of turbulent years during Conservative rule that left many voters pessimistic about their country’s future. The U.K.’s exit from the European Union followed by the COVID-19 pandemic and Russia’s invasion of Ukraine battered the economy. Rising poverty and cuts to state services have led to gripes about “Broken Britain.”

In Asia, Japan’s Nikkei 225 topped the 41,000 level early on Friday to rise above its record closing level set on Thursday, but it ended the day marginally lower.

 

[Skate]

As @bigdog is currently on holiday, he has asked me to cover the morning report duties for this week in his absence.

Pre-Market Futures Report
1. Dow Jones Industrial Average (DJIA) Futures: Pointing slightly higher, indicating a positive start.
2. NASDAQ Composite Futures: Showing a modest increase, suggesting potential gains for tech stocks.
3. S&P 500 Futures: Also trending upwards, signalling generally positive sentiment across the broader market.

Global Markets
1. European Markets: Exhibiting a mixed performance, with some indices gaining while others are slightly down.
2. Asian Markets: Mostly positive, with key indices like the Nikkei 225 and Hang Seng recording gains.

Commodities
1. Crude Oil: Prices are slightly lower, reflecting some volatility in the energy sector.
2. Gold: Prices are up, potentially indicating a safe-haven demand.

Currencies
USD: Relatively stable against major currencies, with minor fluctuations.

Key Drivers
1. Economic Data: Investors are awaiting the release of key economic reports, including job data and inflation figures, which could influence market movements.
2. Earnings Reports: Several major companies are set to release their earnings, which could impact individual stock performance and overall market sentiment.
3. Geopolitical Events: Ongoing geopolitical tensions and trade discussions are also being closely monitored by investors.

Skate.

 

[Skate]

@Joe Blow remarked:
"This thread is the greatest single act of long term commitment and dedication that I've ever seen on a forum"
"Come rain, hail or shine, bigdog will be there to update you on the US and other international markets"

"Thank you bigdog for your tireless efforts in keeping ASF members and visitors informed every day!"

I have a routine and enjoy reading @bigdog's posts every day while having a cup of coffee. As @bigdog is currently on holiday, he has asked me to cover the morning report duties for this week in his absence. Daily rituals are the backbone of a productive life, and @bigdog has embodied that perfectly with his unwavering commitment to this community.

There is nothing like routine to keep you active and above what's happening in the world of trading. Each morning, I eagerly anticipate reading @bigdog's "nyse-dow-jones-finished-today-at" thread. It has become a ritual that grounds me and keeps me informed as I start my day.

On the 16th of January 2007, @bigdog started this iconic thread, and today it stands at a remarkable total of around 5,000 posts. This is truly a milestone worth celebrating. @bigdog, your tireless efforts in keeping ASF members and visitors informed every day are a testament to your dedication and passion. Thank you for being a reliable and trusted source of information in our community. Enjoy your well-deserved holiday, and we look forward to your return!

Skate.

 

[bigdog]

Stock market today: Asian shares trade mostly higher after S&P 500, Nasdaq reach more records

Asian shares are trading mostly higher after Wall Street benchmarks reached more milestones. Shares were trading higher in Tuesday morning trading in Tokyo, Sydney and Seoul, while declining slightly in Hong Kong and Shanghai.

apnews.com

Wall Street ends mixed, nudging the S&P 500 and Nasdaq to more records​

By DAMIAN J. TROISE and ALEX VEIGA
Updated 4:00 AM GMT+7, July 9, 2024

A subdued day of trading on Wall Street ended Monday with a mixed finish for the major stock indexes and more market milestones.

The S&P 500 and Nasdaq composite each notched all-time highs after finishing with gains of 0.1% and 0.3%, respectively. The Dow Jones Industrial Average gave up an early gain and closed 0.1% lower.

The indexes have been gaining ground steadily over the last several months and that has helped push the benchmark S&P 500 index to 35 records so far this year.

“The current market is positive and steady to a nearly unprecedented degree,” said Mark Hackett, chief of investment research at Nationwide. “It’s extremely rare to see these types of consistent gains with almost no volatility.”

Gains in tech stocks, including several chipmakers, tempered declines in communication services, energy and other sectors of the S&P 500. Nvidia rose 1.9%, Broadcom added 2.5% and Advanced Micro Devices finished with a 3.9% gain.

Specialty glassware maker Corning surged 12% for the biggest gain in the market Monday after raising its sales forecast.

Troubled airplane maker Boeing rose 0.5% after agreeing to plead guilty to a criminal fraud charge stemming from two crashes of 737 Max jetliners that killed 346 people. The government determined the company violated an agreement that had protected it from prosecution for more than three years.

Entertainment giant Paramount Global slid 5.3% for the biggest decline among S&P 500 stocks after it agreed to merge with Skydance.

All told, the S&P 500 rose 5.66 points to 5,572.85. The Nasdaq added 50.98 points to close at 18,403.74. The Dow fell 31.08 points to 39,344.79.

Traders are looking ahead to several earnings reports this week including updates from Delta Air Lines on Thursday.

JPMorgan, Citigroup and Wells Fargo will report results on Friday. The latest updates for banks could give Wall Street a clearer picture on how consumers are handling increased debt and whether banks are worried about payments and potential delinquencies.

Federal Reserve Chair Jerome Powell addresses Congress on Tuesday and Wednesday. The central bank has kept its benchmark interest rate at its highest level in more than two decades in an effort to tame inflation.

The Fed’s goal is to cool inflation back to 2% without slowing economic growth too much. Inflation is still squeezing consumers, but it has fallen significantly from its peak two years ago. Economic growth has slowed this year, but it remains relatively strong amid a solid jobs market and consumer spending.

The central bank will get more updates on inflation at the consumer level on Thursday. Wall Street expects the latest government report to show inflation easing to 3.1% in June from 3.3% in May.

A report for inflation at the wholesale level, before costs are passed on to consumers, is expected Friday.

Inflation is seemingly stuck at around 3% by most measures. That has prompted more caution from the Fed and dampened expectations for the number of anticipated rate cuts this year. Most experts are expecting one rate cut from the Fed this year, but not until September. The Fed holds its next policy meeting later this month.

Treasury yields were relatively stable in the bond market. The yield on the 10-year Treasury fell to 4.27% from 4.28% late Friday.

European stocks were mixed after France’s elections left its legislature divided among left, center and far right, with no single political faction getting close to a majority.

Stocks in Asia fell.

ASX 200 expected to rebound​

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

According to the latest SPI futures, the ASX 200 is poised to open the day 17 points or 0.3% higher.
A subdued day of trading on Wall Street ended Monday with a mixed finish for the major stock indexes and more market milestones.

The S&P 500 and Nasdaq composite each notched all-time highs after finishing with gains of 0.1% and 0.3%, respectively. The Dow Jones Industrial Average gave up an early gain and closed 0.1% lower.

All told, the S&P 500 rose 5.66 points to 5,572.85. The Nasdaq added 50.98 points to close at 18,403.74. The Dow fell 31.08 points to 39,344.79.

 

[eskys]

A truly remarkable person is bigdog. I've never thanked him for his dedication and commitment, but deep down, I know I should have. It is a thread I read when I'm in. Thank you, Joe, Skate for your recognition of bigdog's contribution.

 

[Skate]

@bigdog, I was under the impression that you wanted me to make the morning report for you this week while you're on holiday. However, I see that you have already posted today's update, which is great. The format I had planned was a bit different from your usual approach, as I wanted to provide more of my own take on what happened overnight in the markets.

Since you've already covered the key details, I don't want to duplicate your efforts. Instead, let me share my perspective on the market movements and any notable events that caught my attention.

Mixed Performance Across Major Indices Amid Anticipation for Powell's Testimony
Skate's Market Recap: 8th of July 2024

Overnight Results - 8/7/2024
DJIA -0.08% - The blue line
S&P 500 0.10% - The orange line
Nasdaq 0.28% - The purple line

The last 5 days
DJIA - The blue line
S&P 500 - The orange line
Nasdaq - The purple line

Major Indices
The trading session saw a mix of performance across the major indices. The S&P 500 and Nasdaq Composite reached new all-time highs, showcasing strong investor confidence and optimism in these sectors. However, the Dow Jones Industrial Average experienced a slight decline, indicating some caution or profit-taking among investors in that particular index.

Anticipation Builds for Powell's Testimony
Investors are closely monitoring the upcoming testimony of Federal Reserve Chair Jerome Powell before Congress. This event is highly anticipated, as Powell's remarks could provide valuable insights into the central bank's monetary policy plans and its assessment of the current economic landscape. Investors will be analysing Powell's statements for any clues about the potential trajectory of interest rates and their impact on the markets.

Volatility Remains Subdued
Market volatility measures are currently near historic lows, suggesting a period of relative calm and stability. This indicates that investors are experiencing less uncertainty, which could contribute to more stable market conditions in the short term. However, it's important to note that periods of low volatility can sometimes be followed by more turbulent market environments, so investors should remain vigilant.

Key Economic Indicators in Focus
Upcoming economic reports, such as the consumer-price index and major bank earnings, will be closely watched by investors this week. These data points are crucial as they could provide valuable insights into the health of the economy and consumer sentiment, potentially influencing market trends and investor decision-making.

Sector Highlights
1. Technology: The tech sector continued to drive market gains, with significant contributions from major companies like Apple and Nvidia.
2. Energy: The energy sector saw mixed performance, with crude oil prices slightly down, reflecting some volatility in the energy market.
3. Financials: The financial sector showed modest gains, driven by positive earnings reports from major banks.

Global Market Performance
1. Europe: European markets presented a mixed picture, with some indices showing gains while others were slightly down. The FTSE 100 experienced a decline, while the DAX and CAC 40 also saw minor dips.
2. Asia: Asian markets were mostly positive, with key indices like the Nikkei 225 and Hang Seng showing gains. However, the Shanghai Composite experienced a slight decline.

Investor Sentiment Remains Cautiously Optimistic
Overall, investor sentiment remains cautiously optimistic. The record highs in the S&P 500 and Nasdaq Composite reflect strong confidence in the market, particularly in the technology sector. However, the slight decline in the Dow Jones Industrial Average indicates some mixed feelings among investors, possibly due to ongoing economic uncertainties and geopolitical tensions.

In summary
The global market activity presented a mix of highs and lows, with pockets of strength and caution across different sectors and regions. Investors will continue to closely monitor key events and economic data releases to gauge the future direction of the markets.

Upcoming economic reports, such as the consumer-price index and major bank earnings, will be closely watched by investors this week. These data points could provide valuable insights into the health of the economy and consumer sentiment, potentially influencing market trends and investor decision-making.

Skate.

 

[UMike]

Long distance co-ordination is a challenge.

Great work. Making me keen on mine in a weeks time.

 

[bigdog]

Stock market today: Wall Street rises to the edge of records as its momentum keeps rolling

U.S. stocks ticked to the edge of records as Wall Street’s momentum keeps pushing it upward. The S&P 500 climbed 0.3% Monday but finished just shy of its all-time high set last week.

apnews.com

Wall Street rises to the edge of records as its momentum keeps rolling​

By STAN CHOE
Updated 4:25 AM GMT+7, July 16, 2024

NEW YORK (AP) — U.S. stocks ticked to the edge of records Monday as Wall Street’s momentum keeps driving it upward.

The S&P 500 rose 15.87 points, or 0.3%, to 5,631.22 and finished just shy of its all-time high set last week. It’s coming off its 10th winning week in the last 12, lifted in large part by expectations that inflation is slowing enough to convince the Federal Reserve to ease interest rates soon.

The Dow Jones Industrial Average climbed 210.82, or 0.5%, to 40,211.72 and set its own record, while the Nasdaq composite added 74.12, or 0.4%, to 18,472.57 and ended a bit short of its high.

Some of the market’s best performing areas were ones that do best when former President Donald Trump’s chances for election look better. Trump Media & Technology Group, the company behind Trump’s Truth Social platform, leaped 31.4%. Bitcoin rose back above $63,000 after Trump, who has painted himself as a crypto-friendly candidate, survived an assassination attempt over the weekend.

Trump could get an immediate bump in his support in polls, as President Ronald Regan did in 1981, according to Isaac Boltanksy, director of policy research at BTIG, and “Trump’s defiance following the attack could be the defining image of this election cycle.”

Yields for longer-term Treasurys also pushed higher than shorter-term ones, and the 10-year Treasury yield climbed to 4.22% from 4.19% late Friday. Something similar happened after last month’s debate between Trump and President Joe Biden, when traders made moves in anticipation of a Republican sweep in November that could ultimately mean policies that would raise the U.S. government’s debt.

Stocks of big financial companies, which could benefit from a lighter regulatory touch from a Republican administration, also helped lead the market. JPMorgan Chase climbed 2.5% and was one of the strongest forces pushing the S&P 500 higher.

Investment bank Goldman Sachs rose 2.6% after reporting stronger profit and revenue for the latest quarter than analysts expected. BlackRock, the asset manager behind the iShares exchange-traded funds, slipped 0.6% after topping forecasts for profit but coming up a bit shy for revenue.

Expectations are high coming into this earnings reporting season, which unofficially got underway last week. Analysts are forecasting companies in the S&P 500 will deliver overall growth of 9.3% from a year earlier, according to FactSet. That would be the strongest growth in more than two years.

Such forecasts have been one of the forces pushing U.S. stocks toward records. So have encouraging reports on inflation, which have shown enough of a slowdown for much of Wall Street to expect the Federal Reserve to begin cutting its main interest rate in September.

For roughly a year, the Fed has been keeping its main interest rate at the highest level in more than two decades. Lower rates would release pressure that’s built up on the economy because of how expensive it’s become to borrow money to buy houses, cars, or anything on credit cards. Fed officials, though, have been saying they want to see “more good data” on inflation before making a move.

In remarks before the Economic Club of Washington, Federal Reserve Chair Jerome Powell said again on Monday he won’t send any signals about when the Fed may cut interest rates. But he also said Fed officials understand the risks of waiting both too long and not long enough. Too-late cuts could push the U.S. economy into a recession, while too-aggressive cuts could allow inflation to reaccelerate.

Despite the seemingly unstoppable run for the U.S. stock market, some skeptics are sticking with their caution amid what they see as too-expensive prices. The S&P 500 has already leaped 18% and set an all-time high 37 times so far this year.

Barry Bannister, chief equity strategist at Stifel, acknowledged he was at least early in his call earlier this year for an imminent “correction’ in stock prices, but he is still warning about the possibility for an upcoming drop of 10%.

He said high inflation could remain stubborn, and he’s looking for the U.S. economy’s growth to be slower than expected in the second half of the year. Such a mix constitutes “moderate stagflation” and could particularly hurt the high-growth stocks that have been leading Wall Street, according to Bannister.

Among individual companies, U.S.-listed shares of Burberry skidded 16.1% after the British luxury fashion house said it has appointed Joshua Schulman, formerly head of Michael Kors and Coach, as its new chief executive officer. The unexpected announcement came as Burberry said its first-quarter revenue was down 21%, and it suspended its dividend.

Macy’s tumbled 11.7% after it ended talks for a potential buyout by two investment firms that had lasted months. The retailer said the firms’ latest offer wasn’t high enough to be compelling and also may not have been fully financed.

In stock markets abroad, Chinese indexes were mixed after China reported its economy expanded at a slower-than-expected pace in the latest quarter and as its ruling Communist Party opened a once-a-decade policy-setting meeting. Hong Kong’s Hang Seng fell 1.5%, while stocks in Shanghai added 0.1%.

Stock indexes were mostly lower in Europe.

ASX 200 expected to fall​

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

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

U.S. stocks ticked to the edge of records Monday as Wall Street’s momentum keeps driving it upward.

The S&P 500 rose 15.87 points, or 0.3%, to 5,631.22 and finished just shy of its all-time high set last week. It’s coming off its 10th winning week in the last 12, lifted in large part by expectations that inflation is slowing enough to convince the Federal Reserve to ease interest rates soon.

The Dow Jones Industrial Average climbed 210.82, or 0.5%, to 40,211.72 and set its own record, while the Nasdaq composite added 74.12, or 0.4%, to 18,472.57 and ended a bit short of its high.

 

[bigdog]

Stock market today: Asian stocks slip, while Australian index tracks Wall St rally to hit record

Asian stocks are mostly lower even as investors wager that the Federal Reserve will come ahead with a cut to interest rates, while Australia's benchmark hit a new record.

apnews.com

A widespread rally sends Wall Street to records, and the Dow leaps 740 points​

By STAN CHOE
Updated 7:08 AM GMT+10, July 17, 2024

NEW YORK (AP) — U.S. stocks rallied to records, again, on Tuesday. What made this time more jubilant was how many companies joined the party.

The S&P 500 climbed 0.6% to set an all-time high for the 38th time this year. Unlike other record-setting days, Tuesday’s came after a widespread rally where nearly nine out of every 10 stocks in the S&P 500 rose, instead of just the handful of influential Big Tech stocks that have been behind most of this year’s returns.

The Dow Jones Industrial Average leaped 742 points, or 1.8%, to lead the market a day after setting its own record. The Nasdaq composite lagged with a gain of 0.2%, as the stars dimmed for some of the year’s biggest winners.

UnitedHealth Group drove the market after reporting better profit for the spring than analysts expected, despite losses it took due to a massive cyberattack. Its stock rose 6.5%, and the health care company reported growth in the number of people served at both its Optum and UnitedHealth businesses.

Bank of America rallied 5.3% after it likewise reported stronger profit for the latest quarter than forecast. It benefited from growth at its investment banking business.

They helped offset drops for a handful of massive Big Tech stocks, whose sizes give their movements an outsized effect on indexes. Nvidia, for example, was the heaviest single weight on the S&P 500 after falling 1.6%.

But that decline was just a minor pullback compared with how much the chip company’s stock rocketed earlier amid Wall Street’s frenzy around artificial-intelligence technology. Nvidia shares are still up 155.2% for the year so far.

Plus, some market watchers have been hoping for just such a broadening of the stock market’s performance, because a market with many stocks rising is seen as healthier than one driven by just an elite few stocks.

Only 24% of companies in the S&P 500 had been beating the index so far this year, according to Solita Marcelli, chief investment officer, Americas, at UBS Global Wealth Management. That’s down from last year’s already low tally of 26%.

In another signal of more companies participating in the market’s rally, stocks of smaller companies also outpaced their larger rivals after having lagged for a while.

The Russell 2000 index of smaller stocks jumped 3.5%, nearly six times the S&P 500’s gain. It’s coming off its best week since November, as stocks from other beaten-down corners of the market also rally following signals that the U.S. economy remains solid and that easier interest rates may soon be on the way.

Several big winners from the day before, which benefited from heightened expectations for former President Donald Trump to retake the White House, gave back some of their immediate jumps following Trump’s dodging of an assassination attempt over the weekend.

Trump Media & Technology Group fell 9.1%, a day after leaping 31.4%. Shares of the company behind Trump’s Truth Social platform regularly swing by big percentages each day, up or down.

All told, the S&P 500 rose 35.98 points to 5,667.20. The Dow jumped 742.76 to 40,954.48, and the Nasdaq composite added 36.77 to 18,509.34.

In the bond market, some of the prior day’s moves also reversed themselves. Longer-term yields sank more than shorter-term yields after a report showed sales at U.S. retailers held firm last month despite economists’ expectations for a decline.

The yield on the 10-year Treasury dropped to 4.16% from 4.23% late Monday. It’s fallen from 4.70% in April, which is a major move for the bond market and has given a solid boost to stock prices.

Yields have eased on rising expectations that inflation is slowing enough to convince the Federal Reserve to begin cutting interest rates soon. The Fed has been keeping its main interest rate at the highest level in more than two decades in hopes of slowing the economy just enough to get inflation fully under control.

Tuesday’s stronger-than-expected data on retail sales may give Fed officials some pause, because too-strong activity could keep upward pressure on inflation. But traders are still betting on a 100% probability that the Fed will cut its main interest rate in September, according to data from CME Group. A month ago, they saw a 70% chance.

Risks lie on both sides of the tightrope that the Federal Reserve is currently walking. The central bank hopes to ease the brakes that it’s applied to the economy through high interest rates at the precisely correct time. Easing too soon could allow inflation to reaccelerate, but easing too late could cause a recession. Tuesday’s data on retail sales points to an economy that is remaining resilient so far.

In stock markets abroad, indexes were lower across much of Europe. Asian indexes were mixed, with the 1.6% drop for Hong Kong’s Hang Seng a big mover.

ASX 200 expected to rebound​

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

According to the latest SPI futures, the ASX 200 is expected to open the day 55 points or 0.65% higher.
U.S. stocks rallied to records, again, on Tuesday. What made this time more jubilant was how many companies joined the party.

The S&P 500 climbed 0.6% to set an all-time high for the 38th time this year. Unlike other record-setting days, Tuesday’s came after a widespread rally where nearly nine out of every 10 stocks in the S&P 500 rose, instead of just the handful of influential Big Tech stocks that have been behind most of this year’s returns.

The Dow Jones Industrial Average leaped 742 points, or 1.8%, to lead the market a day after setting its own record. The Nasdaq composite lagged with a gain of 0.2%, as the stars dimmed for some of the year’s biggest winners.

All told, the S&P 500 rose 35.98 points to 5,667.20. The Dow jumped 742.76 to 40,954.48, and the Nasdaq composite added 36.77 to 18,509.34

 

[bigdog]

Stock market today: Big tech stocks dive again to halt Wall Street's record-setting rally

Wall Street’s record-breaking rally ran into a wall, as worries about potentially worsening trade tensions with China hit stocks of chip companies.

apnews.com

Big tech stocks dive again to halt Wall Street’s record-setting rally​

By STAN CHOE
Updated 7:09 AM GMT+10, July 18, 2024

NEW YORK (AP) — Wall Street’s record-breaking rally ran into a wall Wednesday, as worries about potentially worsening trade tensions with China hit stocks of chip companies. That dragged indexes to their worst day in months, but conditions may have been less discouraging underneath the surface.

The S&P 500 slumped 1.4% a day after setting an all-time high for the 38th time this year. Losses for Nvidia and other Big Tech heavyweights also dragged the Nasdaq composite to a loss of 2.8%, its worst drop since 2022.

But slightly more stocks in the S&P 500 nevertheless rose than fell, and the Dow Jones Industrial Average added 243 points, or 0.6%, to its record set a day earlier.

The mix offered a continuation of a recent trend that market watchers have called encouraging, one where more stocks are rising rather than just a handful of dominant elites. The smaller stocks in the Russell 2000 were coming off a big five-day winning streak on hopes that interest rates are about to get easier and the U.S. economy will avoid a recession, though the index fell 1.1% Wednesday to hand back some of the gains.

The market’s spotlight was squarely on chip companies, which tumbled after a report from Bloomberg News said President Joe Biden is considering the most severe trade restrictions available if companies like the Netherlands’ ASML and Japan’s Tokyo Electron continue to ship advanced semiconductor technology to China. The U.S. government has blocked Chinese access to advanced chips and the equipment to make them, citing security concerns, and urged its allies to follow suit.

ASML saw its stock trading in the United States drop 12.7% even though it reported sales for the spring that came in at the high end of its forecasted range. Shares of Tokyo Electron, meanwhile, dropped 7.5% in Tokyo to cull its gain for the year to 32.2%.

Another major chip company, Taiwan Semiconductor Manufacturing Co., sank after former President Donald Trump criticized the self-governed island claimed by Beijing, which the U.S. is obligated by treaty to defend if it is attacked.

“Taiwan should pay us for defense,” Trump said according to a transcript of an interview published by Bloomberg. “Taiwan took our chip business from us, I mean, how stupid are we?” he said.

TSMC’s stock trading in the United States dropped 8%.

Reverberations reached chip stocks around the world, including big U.S. players that have been some of Wall Street’s biggest stars this year amid a frenzy around artificial-intelligence technology. Nvidia fell 6.6% after soaring 155.2% this year through the day before.

Advanced Micro Devices fell 10.2%, and Broadcom dropped 7.9%.

Big Tech stocks’ movements have an outsized effect on indexes like the S&P 500, which give more weight to companies of bigger size. That was a boon in recent years, when a small group of companies known as “the Magnificent Seven” was able to soar almost regardless of what the overall economy and interest rates were doing. That helped mask weakness underneath the surface as the economy struggled through high interest rates meant to snuff out inflation.

Now, though, some critics call those Magnificent Seven stocks too expensive, and investors are creeping back into unloved areas of the market. The economy has remained resilient so far, with the job market staying solid, and investors widely expect the Federal Reserve to begin cutting interest rates in September because inflation has slowed.

“Markets cannot continue indefinitely higher on the backs of just a handful of stocks,” said JJ Kinahan, CEO of IG North America.

Johnson & Johnson, whose stock is down for the year so far, climbed 3.7% after topping analysts’ forecasts for profit in the latest quarter. It was one of the largest reasons the Dow Jones Industrial Average was able to rise despite drops of at least 1% for each of the Magnificent Seven stocks: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla.

U.S. Bancorp, which has also lagged the rest of the market this year, rallied 4.6% after topping analysts’ forecasts for profit and revenue.

On the losing side of Wall Street was Five Below, a retailer targeting teens and tweens with products priced at $5 or below. It tumbled 25.1% after its CEO, Joel Anderson, stepped down from his job and from the board. It also gave a profit forecast for the second quarter that fell short of analysts’ expectations.

Spirit Airlines lost 10.8% after the discount carrier cut its forecast for revenue in the second quarter. It said it’s making fewer dollars than expected from fees outside of tickets.

All told, the S&P 500 fell 78.93 points to 5,588.27. The Dow climbed 243.60 to 41,198.08, and the Nasdaq composite sank 512.42 to 17,996.92.

In the bond market, the 10-year Treasury yield dipped to 4.14% from 4.16% late Tuesday.

In stock markets abroad, London’s FTSE 100 rose 0.3% after data showed the inflation rate remained steady at the Bank of England’s 2% target in June. Indexes were mixed elsewhere across Europe and Asia.

ASX 200 expected to fall​

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

According to the latest SPI futures, the ASX 200 is expected to open the day 43 points or 0.5% lower this morning.
Wall Street’s record-breaking rally ran into a wall Wednesday, as worries about potentially worsening trade tensions with China hit stocks of chip companies. That dragged indexes to their worst day in months, but conditions may have been less discouraging underneath the surface.

The S&P 500 slumped 1.4% a day after setting an all-time high for the 38th time this year. Losses for Nvidia and other Big Tech heavyweights also dragged the Nasdaq composite to a loss of 2.8%, its worst drop since 2022.

But slightly more stocks in the S&P 500 nevertheless rose than fell, and the Dow Jones Industrial Average added 243 points, or 0.6%, to its record set a day earlier.

All told, the S&P 500 fell 78.93 points to 5,588.27. The Dow climbed 243.60 to 41,198.08, and the Nasdaq composite sank 512.42 to 17,996.92.

 

[bigdog]

Stock market today: Asian shares sink, weighed down by Wall St tech retreat, China policy questions

Shares have fallen in Asia after a broad washout across Wall Street dragged U.S. stocks lower. Hong Kong's benchmark fell more than 2% as investors remained wary over China's plans for helping its ailing property sector.

apnews.com

A washout on Wall Street sends stocks, big to small, lower​

By STAN CHOE
Updated 7:14 AM GMT+10, July 19, 2024

NEW YORK (AP) — A widespread washout for U.S. stocks dragged Wall Street lower on Thursday.

The S&P 500 dropped 0.8% to pull further from its all-time high set on Tuesday. The Dow Jones Industrial Average tumbled 533 points, or 1.3%, from its own record set a day before, while the Nasdaq composite sank 0.7%.

As they did the day before, when the Nasdaq tumbled to its worst loss since 2022, several Big Tech stocks led the market lower. Drops of 2% for Apple, 2.2% for Amazon and 0.7% for Microsoft were three of the heaviest weights on the S&P 500.

Unlike much of the last week, though, Thursday’s losses hit many corners of the market. Smaller stocks, which had been cranking higher after badly lagging their larger rivals, fell more than the rest of the market. The Russell 2000 index lost 1.8% after jumping more than 1% in five of the last six days.

The majority of stocks within the S&P 500 also fell after giving up gains from earlier in the day. The sharpest loss came from Domino’s Pizza, which dropped 13.6% despite topping analysts’ expectations for profit in the spring.

The pizza chain temporarily suspended its forecast for how many stores will open globally over the long term. While that’s likely due to reasons beyond the company’s control, analysts said it could frustrate investors.

Darden Restaurants, the company behind Olive Garden, LongHorn Steakhouse and other chains, sank 3%. It said it would buy the Chuy’s Tex-Mex chain in an all-cash deal valuing it at $605 million. Chuy’s stock jumped 47.8%

Stocks of chip companies stabilized a bit after tumbling a day earlier amid worries about potentially worsening tensions with China. U.S.-traded shares of Taiwan Semiconductor Manufacturing Co. rose 0.4% after the industry giant reported stronger profit for the latest quarter than analysts expected. It bounced back from its loss of 8% the prior day, but only after swerving between gains and losses.

Nvidia rose 2.9% after likewise flipping between gains and losses through the day. It stretched its gain for the year to nearly 145%.

Earlier this year, a climb for Nvidia and some of the other handful of stocks that came to be known as the “Magnificent Seven” may have been enough to prop up the rest of the market.

That’s what they did for a while, after all, as their stock prices rocketed amid a frenzy around artificial-intelligence technology, even as other stocks struggled under the weight of higher interest rates and slowing economic growth.

Because the S&P 500 and other indexes give more weight to stocks of bigger size, and because the Magnificent Seven stocks had swelled into Goliaths, gains for Big Tech could drive up the market almost by themselves.

But a shift had gotten underway on Wall Street over the last week. Instead of piling into Big Tech, which critics have called too pricey, investors moved toward smaller stocks, companies whose profits are closely tied to the economy’s strength and other areas that have been unloved for a while.

The momentum kicked into a high gear after an encouraging report on inflation raised expectations for the Federal Reserve to begin easing interest rates in September. Lower rates and a solid U.S. economy could mean bigger benefits for smaller companies than for Big Tech giants, which rose almost regardless of such factors.

The market saw a similar turn in momentum around the end of last year, but it didn’t last. Strategists at UBS led by Maxwell Grinacoff say they need to see several milestones “for this rotation to be real and sustainable.”

Among them, they say the job market and economic growth would need to sustain modestly over the next few months and inflation would have to continue to cool. In the meantime, more than a third of the smallest stocks remain unprofitable.

In the bond market, Treasury yields rose following some mixed data on the economy.

One report said more workers applied for unemployment benefits last week than economists expected. That could be a signal of a softening job market, though the number remains low compared with history.

A separate report said manufacturing in the mid-Atlantic region is growing much better than economists thought.

The yield on the 10-year Treasury rose to 4.19% from 4.16% late Wednesday.

Wall Street is hoping the economy can remain in a “Goldilocks” state, where it’s not so hot that it puts upward pressure on inflation but not so cold that it slides into a recession.

Besides hopes for coming cuts to the Fed’s main interest rate, which has been sitting at its highest level in more than two decades, expectations for stronger corporate profit growth have also helped drive stocks.

D.R. Horton jumped 10.1% for the largest gain in the S&P 500 after the homebuilder reported stronger profit and revenue for the spring than analysts expected. Other homebuilders also rallied, including a 2.5% rise for PulteGroup and a 2.1% climb for Lennar.

All told, the S&P 500 fell 43.68 points to 5,544.59. The Dow dropped 533.06 to 40,665.02, and the Nasdaq sank 125.70 to 17,871.22.

In stock markets abroad, European indexes were mixed after the European Central Bank held its main interest rate steady. Asian indexes were also mixed.

ASX 200 to sink​

The Australian share market looks set to end the week on a disappointing note following a poor session in the United States.

According to the latest SPI futures, the ASX 200 is expected to open 87 points or 1.2% lower this morning.

A widespread washout for U.S. stocks dragged Wall Street lower on Thursday.

The S&P 500 dropped 0.8% to pull further from its all-time high set on Tuesday. The Dow Jones Industrial Average tumbled 533 points, or 1.3%, from its own record set a day before, while the Nasdaq composite sank 0.7%.

As they did the day before, when the Nasdaq tumbled to its worst loss since 2022, several Big Tech stocks led the market lower. Drops of 2% for Apple, 2.2% for Amazon and 0.7% for Microsoft were three of the heaviest weights on the S&P 500.

All told, the S&P 500 fell 43.68 points to 5,544.59. The Dow dropped 533.06 to 40,665.02, and the Nasdaq sank 125.70 to 17,871.22

 

[bigdog]

Stock market today: Wall Street finishes worst week since April with more losses

U.S. stocks slumped following another washout. The S&P 500 fell 0.7% Friday to close its first losing week in the last three and its worst since April.

apnews.com

Wall Street finishes worst week since April with more losses​

By STAN CHOE
Updated 7:08 AM GMT+10, July 20, 2024

NEW YORK (AP) — U.S. stocks slumped Friday in another washout, as businesses around the world scrambled to contain the effects of a disruptive technology outage.

The S&P 500 fell 0.7% to close its first losing week in the last three and its worst since April. The Dow Jones Industrial Average dropped 377 points, or 0.9%, while the Nasdaq composite sank 0.8%.

It was only on Tuesday that the S&P 500 set its latest all-time high. At first, pressure built on the Big Tech stocks that have been the market’s biggest winners, amid criticism they simply grew too expensive. Nvidia, for example, is still up 138% this year amid a frenzy around artificial-intelligence technology, even after falling 2.6% Friday and 8.8% over the week.

Gains for previously unloved areas of the market had helped to offset some of those declines: Smaller stocks and companies whose profits are closely tied to the economy’s strength were rising. That sparked hopes for a market where more stocks are rising, rather than just a handful of dominating elites, which market watchers say would be healthier.

“This rotation can continue, but it doesn’t always have to be where they’re rising faster, it could be because they are falling less,” according to Brian Jacobsen, chief economist at Annex Wealth Management.

Momentum for those beaten-down areas of the market may be sputtering. The Russell 2000 index of smaller stocks fell 0.6% Friday for its third straight drop, following its huge five-day run where it shot up 11.5%. Three out of every four stocks in the S&P 500 also sank.

Friday’s moves came as a major outage disrupted flights, banks and even doctors’ appointments around the world. Cybersecurity firm CrowdStrike said the issue believed to be behind the outage was not a security incident or cyberattack and that it had deployed a fix. The company said the problem lay in a faulty update sent to computers running Microsoft Windows.

CrowdStrike’s stock dropped 11.1%, while Microsoft’s lost 0.8%.

Richard Stiennon, a cybersecurity industry analyst, called it a historic mistake by CrowdStrike, but he also said he did not think it revealed a bigger problem with the cybersecurity industry or with CrowdStrike as a company.

“We all realize you can fat finger something, mistype something, you know whatever -- we don’t know the technical details yet of how it caused the bluescreen of death” for users, he said.

“The markets are going to forgive them, the customers are going to forgive them, and this will blow over.”

Crowdstrike’s stock trimmed its loss somewhat through the day, but it still turned in its worst performance since 2022. Stocks of rival cybersecurity firms climbed, including a 7.8% jump for SentinelOne and a 2.2% rise for Palo Alto Networks.

The outage hit check-in procedures at airports around the world, causing long lines of frustrated fliers. That initially helped pull down U.S. airline stocks, but they quickly pared their losses. United Airlines flipped to a gain of 3.3%, for example. It said many travelers may experience delays, and it issued a waiver to make it easier to change travel plans.

American Airlines Group slipped 0.4%, and Delta Air Lines rose 1.2%.

Comerica dropped 10.5% for one of the market’s sharper losses, even though it delivered better earnings for the spring than analysts expected. The bank said it received a preliminary notification that it won’t continue as the issuer of the Direct Express debit card for about 4.5 million federal benefit recipients, a program it’s had since 2008.

American Express sank 2.7% after its revenue for the latest quarter fell short of analysts’ forecasts. It was one of the largest reasons for the Dow’s drop, despite reporting stronger profit than expected.

Halliburton fell 5.6% after the provider of services to the energy industry matched analysts’ expectations for profit last quarter but missed for revenue.

Rival SLB was on the winning side of Wall Street after reporting stronger profit than expected, and its stock rose 1.9%.

All told, the S&P 500 fell 39.59 points to 5,505.00. The Dow dropped 377.49, or 0.9%, to 40,287.53, and the Nasdaq lost 144.28 to 17,726.94.

In the bond market, yields ticked higher. The yield on the 10-year Treasury rose to 4.23% from 4.20% late Thursday.

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

Stocks fell 2% in Hong Kong and rose 0.2% in Shanghai after Chinese officials briefed reporters in Beijing on the outcome of a top-level meeting of the ruling Communist Party. They provided some details of the sweeping blueprint it endorsed for making China a leader in technology, building its financial markets and raising living standards.

 

[bigdog]

ASX 200 expected to sink​

ASX looks set to drop 0.8 per cent on opening after a volatile session closed the week on Wall Street, Biden resignation adds to uncertainty

According to the latest SPI futures, the ASX 200 is expected to open the day 67 points or 0.9% lower.

In the United States, the Dow Jones was down 0.9%, the S&P 500 was 0.8% lower, and the Nasdaq dropped 0.8%. Though, this was before news that US President Biden is withdrawing from the race to be the next president.

The S&P 500 fell 0.7% to close its first losing week in the last three and its worst since April. The Dow Jones Industrial Average dropped 377 points, or 0.9%, while the Nasdaq composite sank 0.8%.

All told, the S&P 500 fell 39.59 points to 5,505.00. The Dow dropped 377.49, or 0.9%, to 40,287.53, and the Nasdaq lost 144.28 to 17,726.94.

 

[bigdog]

Stock market today: Asian shares are mixed after Wall Street breaks losing streak

Shares are mostly higher in Asia after a rally on Wall Street. U.S. futures edged lower and oil prices were little changed.

apnews.com

Wall Street climbs as Big Tech recovers following worst week in months​

By STAN CHOE
Updated 6:36 AM GMT+10, July 23, 2024

NEW YORK (AP) — U.S. stocks closed broadly higher on Wall Street Monday, clawing back some of the losses from their worst week since April.

The S&P 500 rose 1.1%, breaking a three-day losing streak. It was the first gain for the benchmark index since it set an all-time high on Tuesday.

The Dow Jones Industrial Average added 0.3%, and the Nasdaq composite climbed 1.6%.

The gains were broad, with more than three-quarters of the stocks in the S&P 500 closing higher, although tech stocks accounted for much of the rally.

Nvidia rose 4.8%, and other Big Tech stocks likewise regained some of their sharp drops from the week before to support the market. They had sputtered amid criticism they’d grown too expensive after rocketing so high and being the main reasons for Wall Street’s run to records. Two of them, Alphabet and Tesla, will report on Tuesday how much profit they earned during the spring in a big test. Alphabet rose 2.3% and Tesla gained 5.1%.

Treasury yields mostly rose in the bond market after President Joe Biden said he won’t run for re-election. The move could cause the unwind of some of the market’s “Trump trade,” which took off after Biden’s weak performance in a debate last month raised expectations for a win by former President Donald Trump.

Bank stocks had climbed on forecasts for lighter regulations following a Republican sweep, for example, and longer-term Treasury yields climbed more than short-term ones on expectations for policies that could push up the U.S. government’s already high debt.

But Biden’s stepping aside over the weekend wasn’t that big a surprise for the market. “It was a matter of when, not if,” according to Brian Jacobsen, chief economist at Annex Wealth Management.

“This could lower the odds of Trump winning, but the Democrats have to rally around a candidate first.”

The yield on the 10-year Treasury rose to 4.26% from 4.24% late Friday. Shorter-term yields were relatively steady. The two-year yield was unchanged at 4.52%, where it was late Friday.

Other corners of the market that could have swung sharply on uncertainty about the election were also mostly quiet. The U.S. dollar’s value was relatively steady against its biggest rivals.

In the meantime, reports on corporate profits and the U.S. economy’s growth could continue to grab the market’s spotlight. Analysts are expecting companies in the S&P 500 to deliver the strongest profit growth for the latest quarter since the end of 2021, according to FactSet.

Truist Financial rose 3.2% after the bank reported net interest income, a key underlying measure of overall profit, that analysts called stronger than expected.

Verizon Communications tumbled 6.1% after reporting profit for the latest quarter that matched analysts’ expectations but revenue that fell just short.

Besides Alphabet and Tesla, dozens of other big U.S. companies will also report their latest quarterly results this upcoming week, including Coca-Cola, Ford and American Airlines.

Airlines last week struggled with massive disruptions from a global technology outage, which appeared to have been largely resolved over the weekend though delays at airports continued Monday.

A faulty software update caused havoc worldwide and led to the grounding by almost all airlines of a number of flights. The vast majority of cancellations early Monday were Delta Air Lines flights. Delta’s stock lost 3.5%.

Cybersecurity firm CrowdStrike said the issue believed to be behind the outage was not a security incident or cyberattack and that it had deployed a fix. The company said the problem lay in a faulty update sent to computers running Microsoft Windows.

CrowdStrike’s stock fell another 13.5% Monday after taking an 11.1% hit on Friday.

All told, the S&P 500 rose 59.41 points to 5,564.41. The Dow added 127.91 points to 40,415.44, and the Nasdaq gained 280.63 points to close at 18,007.57.

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

In Asia, Hong Kong’s Hang Seng rose 1.3%, but stocks fell 0.6% in Shanghai after China’s central bank unexpectedly lowered a benchmark interest rate for loans. The move came after the government recently reported the world’s second-largest economy expanded at a slower-than-forecast pace in the second quarter.

ASX 200 expected to rebound​

The Australian share market is expected to rebound 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 55 points or 0.7% higher.

U.S. stocks closed broadly higher on Wall Street Monday, clawing back some of the losses from their worst week since April.

The S&P 500 rose 1.1%, breaking a three-day losing streak. It was the first gain for the benchmark index since it set an all-time high on Tuesday.

The Dow Jones Industrial Average added 0.3%, and the Nasdaq composite climbed 1.6%.

All told, the S&P 500 rose 59.41 points to 5,564.41. The Dow added 127.91 points to 40,415.44, and the Nasdaq gained 280.63 points to close at 18,007.57.

​ Market watch​ ​ ​ ASX futures up 55 points or 0.7% to 7953 at 6.38am AEST ​ Australian dollar -0.7% to 66.40 US cents at 6.47am AEST Wall Street: S&P 500 +1.1%, Dow Jones +0.3%, Nasdaq +1.6% Europe: Stoxx 50 +1.5%, FTSE +0.5%, DAX +1.3%, CAC +1.2% Bitcoin flat at $US67,964 on Bitstamp at 6.49am AEST Spot gold -0.2% at $US2397.02 per ounce at 6.44am AEST US oil -0.4% to $US79.78 a barrel at 4.29am AEST Brent crude -0.3% to $US82.36 a barrel at 6.37am AEST Iron ore -1% to $US103.50 per tonne (Singapore 62% grade) 10-year yield: US 4.25% Australia 4.30% Germany 2.49% ​

 

[bigdog]

Stock market today: Asian stocks fall after a torrent of profit reports leaves Wall Street mixed

Asian stocks are mostly lower as markets digest Japanese and Australian business data, while U.S. stocks held relatively steady as earnings reporting season ramped up for big companies.

apnews.com

A torrent of profit reports leaves Wall Street mixed as small stocks keep rising​

By STAN CHOE
Updated 6:57 AM GMT+10, July 24, 2024

NEW YORK (AP) — U.S. stocks held relatively steady in a calm Tuesday on Wall Street, as earnings reporting season ramped up for big companies.

The S&P 500 slipped 8.67 points, or 0.2%, to 5,555.74. The Dow Jones Industrial Average edged down by 57.35, or 0.1%, to 40,358.09, and the Nasdaq composite dipped 10.22, or 0.1%, to 17,997.35.

But the smaller stocks in the Russell 2000 continued their big run and rose 1%. They’ve flipped the market’s leaderboard recently and zoomed higher amid hopes for coming cuts to interest rates.

The mixed trading came as dozens of companies reported their results for the spring, with the headliners of Alphabet and Tesla coming after trading closed for the day. Expectations are high, and analysts are forecasting the strongest profit growth for S&P 500 companies broadly since late 2021, according to FactSet.

UPS was one of the heaviest weights on the S&P 500 and tumbled 12.1% after delivering weaker profit and revenue for the spring than analysts expected.

But CEO Carol Tomé said the company’s U.S. business delivered more packages than a year earlier, its first such growth in nine quarters, and called it a “significant turning point for our company.”

Nvidia was the stock most forcefully pushing downward on the S&P 500. Its loss of 0.8% for the day was relatively modest, but the S&P 500 gives more weight to bigger stocks, and Nvidia is worth more than $3 trillion.

Comcast dropped 2.6% after reporting revenue for the spring that fell short of expectations. Its biggest declines came from lower attendance at its U.S. theme parks and from its studios business, which didn’t have as big hits as last year’s “The Super Mario Bros.” and “Fast X” movies.

Helping to offset those losses was GE Aerospace, which flew 5.7% higher after beating analysts’ forecasts for profit in the spring and raising its forecast for earnings over the full year.

Zions Bancorp. jumped 6.2% after reporting better profit for the latest quarter than expected. It and stocks of other regional banks continue to recover from the industry’s mini- crisis that began in March 2023, triggered by the punishing effects of high interest rates.

Sherwin-Williams is another company that’s felt the pain of high interest rates meant to get inflation under control. It climbed 6.9% after delivering stronger profit for the latest quarter than expected. It said it’s seeing growth in demand for paint from new residential customers, and it expects the momentum to continue through the year.

That’s despite high mortgage rates having chilled the housing industry. A report on Tuesday showed sales of previously occupied homes weakened by even more in June than economists expected. Sales slowed in part because prices for previously occupied homes are at the highest ever recorded, according to the National Association of Realtors.

Easier times may be ahead for rates. With inflation slowing, the wide expectation on Wall Street is for the Federal Reserve to begin lowering its main interest rate in September. That would offer some relief for both the economy and financial markets after the Fed has held the federal funds rate at the highest level in more than two decades.

Treasury yields have sunk since the spring on such expectations, and they remain below their heights reached in April. The yield on the 10-year Treasury held steady at 4.25%, where it was in late Monday trading.

Hopes for coming cuts to rates have particularly helped smaller stocks recently. They can get bigger benefits from lower rates than their bigger rivals.

It’s a sharp turnaround for smaller stocks, which lagged badly behind their bigger rivals, headlined by a small group known as the “Magnificent Seven,” for a while. Analysts see it as an encouraging signal when more stocks are participating in a rising market, rather than just a few dominant elites.

Companies’ profits will broadly need to hit a high bar of expectations in order to keep the U.S. stock market near its records, particularly as critics say stocks don’t look cheap after rising so much. What CEOs say about upcoming profits will also be key as investors watch for any hints that companies have less ability to keep their prices high, according to Chris Haverland, global equity strategist at Wells Fargo Investment Institute.

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

Chinese markets were some of the weakest, and stocks fell 0.9% in Hong Kong and 1.6% in Shanghai. Analysts described moves by China’s central bank to cut two key interest rates on Monday as not particularly inspiring.

ASX 200 expected to edge higher​

The Australian share market looks set to edge higher on Wednesday despite a poor session in the United States.

According to the latest SPI futures, the ASX 200 is expected to open the day 11 points or 0.15% higher.
U.S. stocks held relatively steady in a calm Tuesday on Wall Street, as earnings reporting season ramped up for big companies.

The S&P 500 slipped 8.67 points, or 0.2%, to 5,555.74. The Dow Jones Industrial Average edged down by 57.35, or 0.1%, to 40,358.09, and the Nasdaq composite dipped 10.22, or 0.1%, to 17,997.35.

But the smaller stocks in the Russell 2000 continued their big run and rose 1%. They’ve flipped the market’s leaderboard recently and zoomed higher amid hopes for coming cuts to interest rates.

 

[bigdog]

Stock market today: Asian shares dive after a wipeout on Wall Street as Big Tech skids

Big Tech dragged the market lower following profit reports from Tesla and Alphabet.

apnews.com

A wipeout on Wall Street sends the S&P 500 down by 2.3% as Big Tech skids​

By STAN CHOE and ALEX VEIGA
Updated 7:08 AM GMT+10, July 25, 2024

NEW YORK (AP) — A wipeout on Wednesday sent U.S. stock indexes to their worst losses since 2022 after profit reports from Tesla and Alphabet helped suck momentum from Wall Street’s frenzy around artificial-intelligence technology.

The S&P 500 tumbled 2.3% for its fifth drop in the last six days. The Dow Jones Industrial Average dropped 504 points, or 1.2%, and the Nasdaq composite skidded 3.6%.

The profit reports from Tesla and Alphabet weren’t disasters, but they raised questions among investors about which other market heavyweights’ springtime results could fall short of expectations, said Sam Stovall, chief investment strategist at CFRA.

“How many disappointments are we likely to see? Maybe let’s sell first and ask questions later.”

Tesla was one of the heaviest weights on the market and tumbled 12.3% after reporting a 45% drop in profit for the spring, and its earnings fell short of analysts’ forecasts.

Tesla has become one of Wall Street’s most valuable companies not just because of its electric vehicles but also because of its AI initiatives, such as a robotaxi. That’s a tough business to assign a value to, according to UBS analysts led by Joseph Spak, and the “challenge is that the time frame, and probability of success is not clear.”

At Alphabet, meanwhile, investors’ patience with the company’s big AI investments may also be running thinner.

Alphabet dropped 5% even though it delivered better profit and revenue for the latest quarter than expected. Analysts pointed to some pockets of weakness underneath the surface, including weaker growth in advertising revenue for YouTube than expected. They also said increased AI investments and other spending could crimp how much cash it generates.

The larger challenge for Alphabet may have simply been how much its stock has already rallied, nearly 50% in the 12 months through Tuesday, on expectations for continual growth.

Profit expectations are high for U.S. companies broadly, but particularly so for the small group of stocks known as the “ Magnificent Seven.” Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla need to keep delivering powerful growth after being responsible for the majority of the S&P 500’s run to records this year, when many other stocks struggled under the weight of high interest rates. Critics are also calling these superstar stocks too expensive following their rocket rides higher.

The hope on Wall Street is that if momentum does flag for the Magnificent Seven, more stocks outside them can rise to support the market. Conditions may be improving at the right time. Hopes for imminent cuts to interest rates have helped smaller stocks in particular to flip the market’s leaderboard and jump in recent weeks.

The Russell 2000 index of smaller stocks had leaped at least 1% in seven of the last 10 days, though its momentum also slammed into a wall. It dropped 2.1% Wednesday.

Smaller stocks had been jumping as Treasury yields eased on expectations that inflation is slowing enough for the Federal Reserve to begin lowering its main interest rate in September.

Treasury yields were mixed Wednesday after preliminary data suggested U.S. business activity is back to shrinking in manufacturing, though continuing to grow in services industries.

The overall data suggested a “Goldilocks” scenario, where the economy is not so hot that it puts upward pressure on inflation but not so cold that it veers into a recession. But Chris Williamson, chief business economist at S&P Global Market Intelligence, said some potentially concerning signals were also lying beneath the surface, including heightened uncertainty around November’s elections.

The yield on the 10-year Treasury rose to 4.28% from 4.25% late Tuesday.

AT&T was a bright spot for the stock market, rising 5.2% after its profit for the latest quarter matched analysts’ expectations. Mattel jumped 9.8% after topping expectations for profit, aided by growth for its Fisher-Price and Hot Wheels lines.

The problem for Wall Street is that even if more stocks were to rise, they’ll need to do so by more than Big Tech stocks are falling because of how much influence that small group carries.

Nvidia, for example, fell 6.8%. That wasn’t as steep as Tesla’s drop, but it was still the single heaviest weight on the S&P 500 because its total market value tops Tesla’s. A 1% move for Nvidia packs more punch on the index than a 1% move for any company other than Microsoft or Apple.

Outside of Big Tech, Lamb Weston lost 28.2% for the worst loss in the S&P 500 after the supplier of French fries and other frozen potato products reported weaker profit for the latest quarter than expected. The company said fewer diners visited restaurants during the spring than it expected. It also warned challenges could continue into its upcoming fiscal year because of softer demand due to “menu price inflation.”

All told, the S&P 500 fell 128.61 points to 5,427.13. The Dow dropped 504.22 to 39,853.87, and the Nasdaq slid 654.94 to 17,342.41.

In stock markets abroad, indexes slumped across Europe and Asia.

France’s CAC 40 index fell 1.1% as shares of luxury giant LVMH dropped 4.7% in Paris after the owner of Louis Vuitton and Dior reported quarterly sales that missed expectations.

ASX 200 expected to sink​

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

According to the latest SPI futures, the ASX 200 is expected to open the day 75 points or 0.95% lower this morning.

A wipeout on Wednesday sent U.S. stock indexes to their worst losses since 2022 after profit reports from Tesla and Alphabet helped suck momentum from Wall Street’s frenzy around artificial-intelligence technology.

The S&P 500 tumbled 2.3% for its fifth drop in the last six days. The Dow Jones Industrial Average dropped 504 points, or 1.2%, and the Nasdaq composite skidded 3.6%.

All told, the S&P 500 fell 128.61 points to 5,427.13. The Dow dropped 504.22 to 39,853.87, and the Nasdaq slid 654.94 to 17,342.41.

 

[bigdog]

Stock market today: Asian shares mostly advance after Wall St comeback from worst loss since 2022

Shares are mostly higher in Asia, with major markets apart from Shanghai and Taiwan logging modest gains.

apnews.com

Wall Street’s smallest stocks roar a day after its worst loss since 2022​

By STAN CHOE
Updated 7:05 AM GMT+10, July 26, 2024

NEW YORK (AP) — Wall Street’s split widened Thursday, as smaller stocks and other formerly downtrodden areas of the market rose up while superstar Big Tech stocks gave back more of their stellar gains.

A swirling day of trading left the S&P 500 with a loss of 0.5% following its slide from the day before, which was its worst since 2022 and led to a wipeout for financial markets around the world.

The Dow Jones Industrial Average rose 81 points, or 0.2%, while the Nasdaq composite sank 0.9%.

Weighing on Wall Street were continued losses for Nvidia and most of the handful of Big Tech stocks that have been primarily responsible for the S&P 500’s run to records this year. They had tumbled a day earlier after profit reports from Tesla and Alphabet underwhelmed and raised concerns that the market’s frenzy around artificial-intelligence technology had sent prices too high.

Whether the handful of stocks known as the “Magnificent Seven” are rising or falling makes a huge impact on Wall Street because they’ve grown so mammoth in market value. That gives their stock movements extra sway on the S&P 500 and other indexes.

But Thursday’s drops for six of the Magnificent Seven masked a market where the majority of U.S. stocks rallied. A surprisingly strong report on the U.S. economy raised hopes for profits at smaller stocks and other formerly unloved areas of the market.

It’s a flip of the leaderboard from earlier this year, when strength for Big Tech masked weakness for other stocks, which struggled with high interest rates meant to get inflation under control.

The economy’s growth accelerated to an estimated 2.8% annual rate from April through June, double the rate from the prior quarter. A continuation would help drive more sales for companies. Perhaps just as importantly for Wall Street, the report wasn’t so hot that it fanned worries about upward pressure on inflation.

An update on Friday about the Federal Reserve’s preferred measure of inflation could shake things up, but “it’s a struggle to find data points or indicators that hint at inflation still being a significant concern,” according to Yung-Yu Ma, chief investment officer at BMO Wealth Management.

Because inflation has largely resumed its slowdown, the widespread expectation is for the Federal Reserve to begin cutting its main interest rate from the highest level in more than two decades. Following Thursday’s report, traders still see a 100% probability that the Fed will begin doing so in September, according to data from CME Group.

Cuts to rates would release pressure that’s built up on both the economy and financial markets, and investors are thinking it could offer a particularly big boost to smaller stocks and other downtrodden areas whose profits are more closely tied to the strength of the economy than Big Tech’s.

The Russell 2000 index of smaller stocks jumped 1.3%, doing better than other market indexes. It’s up 8.6% this month, versus a loss of 1.1% for the big stocks in the S&P 500.

In the bond market, the yield on the 10-year Treasury slipped to 4.24% from 4.28% late Wednesday. It’s down significantly from its perch of 4.70% reached in April, which gives a strong boost to stock prices.

IBM was one of the biggest reasons for the Dow Jones Industrial Average’s climb, and it rose 4.3% after delivering stronger profit and revenue than expected for the last quarter. It also raised its forecast for how much cash it will generate this year, saying its AI business has been strong.

ServiceNow was the strongest forces pushing upward on the S&P 500. The company, whose platform helps businesses connect seemingly disjointed systems, jumped 13.4% after delivering stronger profit and revenue than expected. It also raised its forecast for subscription revenue this year.

Airline stocks flew higher after American Airlines Group and Southwest Airlines both reported profits for the spring that topped analysts’ expectations. Southwest also announced a break from a tradition of 50 years: It will start assigning seats and selling premium seating for customers who want more legroom.

American Airlines climbed 4.2%, and Southwest Airlines rose 5.5%.

On the losing side of Wall Street was Ford Motor, which tumbled 18.4% after reporting profit that fell short of expectations. Its net income fell in part on rising warranty and recall costs.

All told, the S&P fell 27.91 points to 5,399.22. The Dow rose 81.20 to 39,935.07, and the Nasdaq composite sank 160.69 to 17,181.72.

In stock markets abroad, indexes dropped worldwide following Wall Street’s wipeout on Wednesday. They fell 3.3% in Tokyo, 1.8% in Hong Kong and 1.2% in Paris as worries spread about whether companies would meet expectations for profit growth and about potential moves by central banks on interest rates.

In Japan, the rising value for the yen against the U.S. dollar has hurt shares of the country’s exporters. The yen has been rising on speculation the Bank of Japan will raise interest rates soon, and its next policy meeting ends on July 31.

Chinese stocks fell as investors questioned a central bank decision to cut another key interest rate after several similar moves earlier this week.

ASX 200 expected to rise​

The Australian share market looks set to end the week on a better note despite a mixed session in the United States.

According to the latest SPI futures, the ASX 200 is expected to open 33 points or 0.4% higher this morning.

On Wall Street, the Dow Jones was up 0.2%, the S&P 500 fell 0.5%, and the Nasdaq tumbled 0.9%.

Wall Street’s split widened Thursday, as smaller stocks and other formerly downtrodden areas of the market rose up while superstar Big Tech stocks gave back more of their stellar gains.

A swirling day of trading left the S&P 500 with a loss of 0.5% following its slide from the day before, which was its worst since 2022 and led to a wipeout for financial markets around the world.

The Dow Jones Industrial Average rose 81 points, or 0.2%, while the Nasdaq composite sank 0.9%.

All told, the S&P fell 27.91 points to 5,399.22. The Dow rose 81.20 to 39,935.07, and the Nasdaq composite sank 160.69 to 17,181.72.