NYSE Dow Jones finished today at:

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Stock market today: Wall Street rallies to claw back some of last week's sharp loss

U.S. stocks climbed Monday to claw back some of the losses from their worst week in nearly a year and a half.

apnews.com

Wall Street rallies to claw back some of last week’s sharp loss​

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

NEW YORK (AP) — U.S. stocks climbed Monday to claw back some of the losses from their worst week in nearly a year and a half.

The S&P 500 rallied 1.2%, though it didn’t recoup all of its drop from Friday, let alone from the rest of the four-day losing streak that it broke. The Dow Jones Industrial Average rose 484 points, or 1.2%, and the Nasdaq composite gained 1.2%.

Boeing climbed 3.4% after reaching a tentative deal with its largest union on a new contract that, if ratified, will avoid a strike that threatened to shut down aircraft production by the end of the week. Boeing said 33,000 workers represented by the International Association of Machinists and Aerospace Workers would get pay raises of 25% over the four-year contract.

Nvidia and other Big Tech companies also returned to their long-held position of leading the market, at least briefly. Nvidia climbed 3.5% and was the strongest force pushing the S&P 500 upward. That cut into its 13.9% tumble last week, as questions continued about whether its stock price went too high in investors’ frenzy around artificial intelligence, even if Nvidia has continued to top analysts’ expectations for growth.

After likewise climbing a bit in the morning, Treasury yields later pared their gains. That followed sharp swings in the bond market last week, when a highly anticipated update on the U.S. job market came in weak enough to worsen worries about the slowing U.S. economy.

The Federal Reserve has been intentionally pressing the brakes on the economy through high interest rates in order to stifle high inflation. It’s about to start lowering rates later this month, which would ease the pressure on the economy, as it turns its focus toward protecting the job market and avoiding a recession. The question on Wall Street is if the Fed’s shift in focus will prove to be too late.

Cuts to interest rates give stock prices a boost, but if an economic downturn does hit, it could more than offset such a benefit by dragging down profits for companies. That’s what happened in 2007, for example, when the Great Recession wrecked the global economy and financial markets.

“Today, the absence of glaring household or corporate balance sheet vulnerabilities means Fed easing should be enough to prevent recession, and should provide investors some optimism for the future of the market,” suggests Seema Shah, chief global strategist at Principal Asset Management.

On Wall Street, Palantir Technologies jumped 14.1% in its first trading after S&P Dow Jones Indices said it would add the company to its widely followed S&P 500 index. Dell Technologies rose 3.8% after likewise getting a notice of promotion to the index, though and Erie Indemnity lost an early gain to slip 0.6%.

Apple’s stock was virutally flat after the company unveiled its latest iPhone model, the 16. It’s the first model to be tailored specifically for artificial intelligence, with expected improvements to its often dim-witted virtual assistant, Siri.

Trading in Big Lots was halted after the discount retailer filed for Chapter 11 bankruptcy protection and said it plans to sell its assets and ongoing business operations to private equity firm Nexus Capital Management.

All told, the S&P 500 rose 62.63 points to 5,471.05. The Dow gained 484.18 to 40,829.59, and the Nasdaq composite gained 193.77 to 16,884.60.

In the bond market, the 10-year Treasury yield edged down to 3.71% from 3.72% late Friday.

This upcoming week will feature the latest monthly updates on inflation at the consumer and wholesale levels. Such reports used to be the most anticipated economic data of each month, but market watchers say they’re now taking the back seat to updates on the job market because of the worries about a possible recession.

Of course, if the reports show an unexpected spike higher in inflation, that could put the Federal Reserve in its worst-case scenario. Lower interest rates could help boost the economy, but they could also give inflation more fuel.

In stock markets abroad, indexes rose in much of Europe after falling in Asia. Japan’s Nikkei 225 slipped 0.5% after the country’s economic growth for the second quarter was revised below expectations.

Chinese stocks racked up losses after worse-than-expected inflation data disappointed investors. Indexes fell 1.4% in Hong Kong and 1.1% in Shanghai.

ASX 200 expected to rebound​

The Australian share market is expected to rebound on Tuesday following a strong start to the week in the United States.

According to the latest SPI futures, the ASX 200 is poised to open the day 78 points or 1% higher.

U.S. stocks climbed Monday to claw back some of the losses from their worst week in nearly a year and a half.

The S&P 500 rallied 1.2%, though it didn’t recoup all of its drop from Friday, let alone from the rest of the four-day losing streak that it broke. The Dow Jones Industrial Average rose 484 points, or 1.2%, and the Nasdaq composite gained 1.2%.

All told, the S&P 500 rose 62.63 points to 5,471.05. The Dow gained 484.18 to 40,829.59, and the Nasdaq composite gained 193.77 to 16,884.60.

 

[bigdog]

Stock market today: Wall Street drifts as Oracle soars and banks and oil slump

U.S. stocks drifted to a mixed close following several weeks of sharp swings. The S&P 500 rose 0.4% Tuesday.

apnews.com

Wall Street drifts as Oracle soars and banks and oil slump​

By STAN CHOE
Updated 7:08 AM GMT+10, September 11, 2024

NEW YORK (AP) — U.S. stocks drifted to a mixed finish on Tuesday following several weeks of sharp swings.

The S&P 500 rose 0.4% to pull within 3% of its record set in July. It flipped between small gains and losses through the day, but the moves were nothing like its careens since the summer, driven by worries about the slowing U.S. economy and whether coming cuts to interest rates will keep it out of a possible recession.

The Dow Jones Industrial Average fell 92 points, or 0.2%, and the Nasdaq composite rose 0.8%.

Oracle jumped 11.4% to an all-time high and helped lead the market after delivering better profit and revenue for the latest quarter than analysts expected. Gains for several influential Big Tech stocks also helped drive indexes, including rises of 2.1% for Microsoft and 2.4% for

AP business correspondent Seth Sutel reports stocks were mostly lower.

But banks weighed on the market following discouraging comments from several executives at an industry conference.

JPMorgan Chase fell 5.2% after its chief operating officer said analysts’ expectations for an underlying measure of its profit may be “too high.” Goldman Sachs dropped 4.4% after its chief executive said its trading revenue for the current quarter is trending down at the moment. And Ally Financial sank 17.6% after its chief financial officer warned that borrowers are “struggling with a high inflation and cost of living and now, more recently, a weakening employment picture.”

Stocks of energy producers were also weak after oil prices fell. A barrel of Brent crude, the international standard, is near its lowest price since 2021, and it’s been sinking amid worries about how much fuel a fragile global economy will burn. That helped drag Exxon Mobil down 3.6% and Chevron down 1.5%.

All told, the S&P 500 rose 24.47 points to 5,495.52. The Dow dropped 92.63 to 40,736.96, and the Nasdaq composite added 141.28 to 17,025.88.

In the bond market, Treasury yields eased. The yield on the 10-year Treasury fell to 3.64% from 3.70% late Monday.

Like stocks, Treasury yields have been swinging sharply ahead of the Federal Reserve’s meeting next week, where the widespread expectation is for it to cut its main interest rate for the first time since the COVID crash of 2020.

The Fed is turning its focus away from stifling high inflation and toward protecting the economy. The debate on Wall Street is now focused on how much the Fed will cut the federal funds rate, which has been sitting at a two-decade high, and whether the easing will ultimately prove to be too late to prevent a recession.

Reports coming this week on inflation could influence the size of the Fed’s upcoming cuts. The worst case for the Fed would be if inflation were to reaccelerate when the job market is weakening, because helping either of those would require opposing moves.

On Wednesday, though, economists expect the latest report on inflation to show prices for U.S. consumers were 2.6% higher in August than a year earlier. That would be a slowdown from July’s inflation rate of 2.9%

Ahead of that will be Tuesday evening’s debate between Vice President Kamala Harris and former President Donald Trump. Foreign-exchange strategists at Bank of America say it could be the next catalyst for the market.

The value of the U.S. dollar has increased against peers in the past when expectations for a Trump re-election have strengthened, among other moves that have come to be known as part of the “Trump trade,” due in part to his calling for tariffs. But economists are debating what impact either candidate’s proposed policies would ultimately have on the economy, and the bigger deal may be whether one party is able to sweep into control of both Congress and the White House.

Strategists at Wells Fargo Investment Institute are looking for gridlock to continue, with neither party getting big enough majorities to pass transformative legislation. Because of that, “we think the economy is much more likely to move markets than elections,” said Paul Christopher, head of global investment strategy, and Jennifer Timmerman, investment strategy analyst.

In stock markets abroad, indexes fell in much of Europe after finishing mixed in Asia. Stocks rose 0.2% in Hong Kong and 0.3% in Shanghai after China’s customs office reported the country’s exports grew for a fifth consecutive month, in a sign of growing demand abroad.

ASX 200 expected to edge up ​

The Australian share market looks set to edge up on Wednesday following a decent session in the United States.

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

U.S. stocks drifted to a mixed finish on Tuesday following several weeks of sharp swings.

The S&P 500 rose 0.4% to pull within 3% of its record set in July. It flipped between small gains and losses through the day, but the moves were nothing like its careens since the summer, driven by worries about the slowing U.S. economy and whether coming cuts to interest rates will keep it out of a possible recession.

The Dow Jones Industrial Average fell 92 points, or 0.2%, and the Nasdaq composite rose 0.8%.

All told, the S&P 500 rose 24.47 points to 5,495.52. The Dow dropped 92.63 to 40,736.96, and the Nasdaq composite added 141.28 to 17,025.88.

 

[bigdog]

Stock market today: Wall Street storms back from an early slide thanks to Nvidia and Big Tech

U.S. stock indexes stormed back from big early drops to finish higher, led by a handful of influential Big Tech companies.

apnews.com

Wall Street storms back from an early slide thanks to Nvidia and Big Tech​

By STAN CHOE
Updated 7:21 AM GMT+10, September 12, 2024

NEW YORK (AP) — U.S. stock indexes stormed back from big early drops on Wednesday to finish higher, led by a handful of influential Big Tech companies.

The S&P 500 rallied 1.1% after erasing a morning wipeout of 1.6%, one where almost every stock within the index had been falling. A majority of the index’s stocks still finished lower for the day, but the performances by Nvidia and other tech stocks were enough to drive it to a third straight gain and back within 2% of its all-time high set in July.

The Dow Jones Industrial Average rose by 124 points, or 0.3%, after rallying back from a drop of 743 points. The Nasdaq composite jumped 2.2%.

The sharp see-saw trading, where the Nasdaq composite roared back from an earlier 1.4% slide, followed the government’s latest update on inflation at the consumer level. Overall inflation slowed to 2.5% in August from 2.9% in July, a touch better than expected. But prices rose more than expected from July into August when ignoring food and energy, and economists say that can be a better predictor of where inflation is heading.

All together, the data seemed to confirm that the Fed will indeed cut its main interest rate at its meeting next week, which would be the first such cut in more than four years. But it bolstered expectations that the Fed will begin with only a traditional-sized move of a quarter of a percentage point instead of the more severe half-point that some had been expecting.

Investors have a long history of being overly optimistic about how much and when the Fed will cut interest rates, only to send stock prices lower after being confronted with reality. Wall Street loves lower rates because they can goose the economy by making it cheaper for U.S. companies and households to borrow. The downside of lower rates is that they can give inflation more fuel.

“We believe the market is pricing in more rate cuts than what will occur this year,” said Gargi Chaudhuri, chief investment and portfolio strategist, Americas at BlackRock.

This time, the Fed at least has already indicated it’s about to begin lowering interest rates as it shifts from fighting high inflation toward protecting the job market and keeping the economy out of a recession. With inflation down from its peak of 9.1% two summers ago, the Fed is hoping to ease the brakes off the already slowing economy.

A worry on Wall Street is that the cuts may prove to be too late, with many U.S. shoppers already struggling under the weight of high prices and stretched ability to spend more.

Vera Bradley’s stock dropped 4.6% after the designer of handbags and the parent company of the Pura Vida brand reported weaker profit and revenue for the latest quarter than analysts expected. It pointed to “stubbornly persistent macro consumer headwinds.”

Elsewhere on Wall Street, Trump Media & Technology Group sank 10.5% to worsen its rough run since March. The company behind former President Donald Trump’s Truth Social platform has often risen and fallen with expectations for Trump’s re-election chances, and he’s coming off a debate with Vice President Kamala Harris.

Since closing above $66 in early March, the stock has tumbled to $16.68. That affects Trump particularly because he is the company’s largest shareholder.

On the winning side of the U.S. stock market were solar-energy companies, which are seen as doing better under a Democratic White House than a Republican one. First Solar jumped 15.2%.

Big Tech also once again lifted the market. A handful of these behemoths has pulled away from the rest of the stock market and accounted for most of the S&P 500’s return through the early part of this year, in large part on excitement about the artificial-intelligence boom.

They faltered during the summer on worries that investors had carried their stock prices too high, including a 27% drop for Nvidia at one point, but they’ve been firming in the last couple weeks.

Besides the 8.1% jump for Nvidia, gains of 2.8% for Amazon, 2.1% for Microsoft and 6.8% for Broadcom were the strongest forces lifting the S&P 500. Because these companies are among Wall Street’s largest by market value, their movements pack more punch on the index than almost every other stock.

All told, the S&P 500 rose 58.61 points to 5,554.13. The Dow rose 124.75 to 40,861.71, and the Nasdaq composite jumped 369.65 to 17,395.53.

In the bond market, the yield on the 10-year Treasury rose to 3.66% from 3.64% late Tuesday. The two-year yield, which more closely follows expectations for Fed action, rose more, to 3.65% from 3.59%.

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

Japan’s Nikkei 225 dropped 1.5% after a Japanese central bank official was quoted by Japanese media as indicating the Bank of Japan was getting ready to raise interest rates. The comments also pushed the value of the Japanese yen higher against the U.S. dollar, a move that earlier in the summer helped send financial markets around the world reeling.

ASX 200 expected to rise​

It looks set to be a better session for Aussie investors on Thursday following a solid night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 50 points or 0.6% higher this morning.

U.S. stock indexes stormed back from big early drops on Wednesday to finish higher, led by a handful of influential Big Tech companies.

The S&P 500 rallied 1.1% after erasing a morning wipeout of 1.6%, one where almost every stock within the index had been falling. A majority of the index’s stocks still finished lower for the day, but the performances by Nvidia and other tech stocks were enough to drive it to a third straight gain and back within 2% of its all-time high set in July.

The Dow Jones Industrial Average rose by 124 points, or 0.3%, after rallying back from a drop of 743 points. The Nasdaq composite jumped 2.2%.

All told, the S&P 500 rose 58.61 points to 5,554.13. The Dow rose 124.75 to 40,861.71, and the Nasdaq composite jumped 369.65 to 17,395.53

 

[bigdog]

Stock market today: Wall Street climbs closer to its record high

U.S. stocks rose closer to their all-time highs following a couple reports on the economy that came in close to expectations.

apnews.com

Wall Street climbs closer to its record high​

By STAN CHOE
Updated 7:26 AM GMT+10, September 13, 2024

NEW YORK (AP) — U.S. stocks pulled closer to their records on Thursday following a couple reports on the economy that came in close to expectations.

The S&P 500 rose 0.7% and climbed back within 1.3% of its record set in July following a shaky summer. It remains on track for a fourth winning week in the last five.

The Dow Jones Industrial Average added 235 points, or 0.6%, and the Nasdaq composite gained 1%.

Nvidia was the strongest force lifting the S&P 500 and rose another 1.9% to bring its gain for the week to nearly 16%. The chip company’s stock has stabilized recently after falling more than 20% during the summer on worries investors had taken it too high in their frenzy around artificial-intelligence technology.

It and other Big Tech stocks helped offset a 12.4% slump for Moderna after the vaccine maker said it expects to break even in 2028, pushing out its earlier prediction of 2026. The company, whose sales have cratered in the aftermath of the COVID-19 pandemic, is also reducing its 2025-2028 research and development investment by 20%.

Treasury yields held relatively steady in the bond market following reports on layoffs and inflation that included few surprises. The data did little to change the overriding belief in the market that the U.S. economy is slowing, along with inflation, and that the Federal Reserve will deliver a cut to interest rates next week in hopes of protecting the job market and preventing a recession.

One report said the number of U.S. workers applying for unemployment benefits last week ticked up, though it remains low relative to history. Another said prices charged at the wholesale level were 1.7% higher in August than a year before. That’s a slowdown from July’s inflation rate, but an underlying measure that economists see as a better predictor of future trends also ticked up more than expected.

The inflation data was similar to Wednesday’s report on prices at the U.S. consumer level. It kept traders betting the Fed will deliver a traditional-sized cut of a quarter of a percentage point next week, instead of the larger half-point that some had earlier been expecting.

While lower interest rates help goose the economy and investment prices, they can also give inflation more fuel.

In the bond market, the yield on the 10-year Treasury edged up to 3.68% from 3.66% late Wednesday. It’s steadying a bit after sliding since April on expectations for coming cuts to rates. That easing helped pull the average rate on a 30-year mortgage in the U.S. this week to its lowest level in 19 months, according to Freddie Mac.

Any cut to rates by the Fed would be the first in more than four years, as it’s been more focused on fighting inflation. Across the Atlantic, moves to protect the economy have already begun. The European Central Bank cut interest rates by a quarter of a percentage point on Thursday, the second time it’s done so to prop up economic growth.

Despite all the focus on how much the Fed will cut rates by in September, the more important factor is how much in total the Fed will ultimately cut, and how much the market has already priced in, say strategists at UBS. Many traders are forecasting total cuts of more than 2 percentage points over the next year, down from the federal funds rate’s current range of 5.25% to 5.50%, according to data from CME Group.

“Any divergence from this path - whether from resurgent inflation or recessionary risks - will likely be received poorly by the market,” according to the strategists led by Jonathan Golub.

On Wall Street, Kroger climbed 7.2% after reporting stronger profit for the latest quarter than analysts expected. The grocer’s revenue fell short of expectations, but it raised the floor of its forecasted range for a key revenue measure for the full year.

Alaska Air Group rose 1.2% after raising its forecast for profit in the summer quarter. The airline said an important underlying measure of revenue will likely be higher than a year earlier. Fuel costs are also likely to be lower than expected.

American Airlines gained 1% after its flight attendants voted to approve a labor contract and avert a possible strike.

All told, the S&P 500 gained 41.63 points to 5,595.76. The Dow rose 235.06 to 41,096.77, and the Nasdaq jumped 174.15 to 17,569.68.

In stock markets abroad, indexes rose across much of Europe. In Asia, Japan’s Nikkei 225 index was a standout and jumped 3.4%. It clawed back some of its sharp losses following a seven-day losing streak.

ASX 200 expected to rise​

The Australian share market looks set to rise again on Friday following a good session in the United States.

According to the latest SPI futures, the ASX 200 is expected to open 45 points or 0.5% higher this morning.

U.S. stocks pulled closer to their records on Thursday following a couple reports on the economy that came in close to expectations.

The S&P 500 rose 0.7% and climbed back within 1.3% of its record set in July following a shaky summer. It remains on track for a fourth winning week in the last five.

The Dow Jones Industrial Average added 235 points, or 0.6%, and the Nasdaq composite gained 1%.

All told, the S&P 500 gained 41.63 points to 5,595.76. The Dow rose 235.06 to 41,096.77, and the Nasdaq jumped 174.15 to 17,569.68.

 

[bigdog]

Stock market today: Wall Street’s best week of 2024 closes with indexes near their records

U.S. stocks closed their best week of the year with more gains and climbed to the cusp of their records.

apnews.com

Wall Street’s best week of 2024 closes with indexes near their records​

By STAN CHOE
Updated 7:26 AM GMT+10, September 14, 2024

NEW YORK (AP) — U.S. stocks closed out their best week of the year with more gains on Friday and climbed to the cusp of their records.

The S&P 500 rose 0.5% for a fifth straight gain and is just 0.7% below its all-time high set in July. Rallies for Microsoft, Broadcom and other big technology stocks helped it claw back almost all its losses from last week, which was its worst in nearly 18 months.

The Dow Jones Industrial Average jumped 297 points, or 0.7%, and at one point got within 30 points of its record set last month. The Nasdaq composite added 0.7%.

Uber Technologies helped drive the market higher with a gain of 6.4% after saying it will bring autonomous ride-hailing to Austin and Atlanta with Waymo early next year.

Stocks also got support from the bond market, where Treasury yields eased ahead of next week’s meeting of the Federal Reserve. The unanimous expectation on Wall Street is for the Fed to deliver the first cut to interest rates in more than four years on Wednesday, and traders are rekindling hopes it may offer bigger-than-usual relief.

The Federal Reserve has been keeping its main interest rate at a two-decade high in hopes of slowing the economy enough to stifle high inflation. With inflation having eased substantially from its peak two summers ago, the Fed has said it can turn more focus to bolstering the slowing job market and economy.

How much to cut rates by will be a delicate balancing act for the Fed: Lowering them relieves pressure on the economy but can also give inflation more fuel. Reports earlier this week showed some underlying upward pressure may remain on inflation, which initially pushed traders to ratchet back expectations for the size of the Fed’s upcoming move.

On Friday, though, traders were seeing roughly a coin flip’s chance that the Fed could deliver a large cut of half of a percentage point, instead of the more traditional quarter of a point, according to data from CME Group. The federal funds rate is currently sitting in a range of 5.25% to 5.50%.

“Right now, the equity market is keying off the toss-up” in the size of the Fed’s cut next week “and would probably be fine with either,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

“They care more about direction than magnitude, and rates falling should take pressure” off companies’ expenses and stock prices, he said.

The yield on the 10-year Treasury eased to 3.65% from 3.68% late Thursday. The two-year yield, which more closely tracks expectations for Fed action, fell more sharply to 3.58% from 3.65%.

On Wall Street, home-furnishings company RH jumped 25.5% after reporting stronger profit and revenue for the latest quarter than expected. The company said demand has been gaining momentum each month “despite operating in the most challenging housing market in three decades.”

The housing market has been contending with high mortgage rates, though they’ve been easing since the spring on expectations for coming rate cuts. Shoppers have also generally been beaten down as prices continue to rise across the economy, though a preliminary reading on U.S. consumer sentiment on Friday came in better than economists expected.

Oracle pared a big early gain to inch up 0.4% after giving long-term financial forecasts that analysts said topped their expectations. That brought the software company’s gain to 14.3% for the week, which it began with a better-than-expected profit report for the latest quarter.

Technology stocks were generally the market’s main drivers this week, particularly Nvidia and other big technology stocks that struggled earlier this summer on concerns their prices had shot too high in the frenzy around artificial intelligence. Nvidia rallied 15.8% over the week despite slipping 0.1% on Friday.

On the losing end of Wall Street Friday was Boeing, which lost 3.7% as aircraft assembly workers walked off the job. Union members voted overwhelmingly to go on strike and reject the troubled aerospace giant’s tentative contract that would have increased wages by 25% over four years.

Adobe fell 8.5%, even though the company also reported better profit for the latest quarter than expected. Analysts said investors were more focused on its financial forecasts for the current quarter, where some trends looked to be falling short of expectations.

All told, the S&P 500 rose 30.26 points to 5,626.02. The Dow gained 297.01 to 41,393.78, and the Nasdaq composite added 114.30 to 17,683.98.

In stock markets abroad, indexes rose in Europe after finishing mixed in Asia.

 

[bigdog]

ASX 200 expected to rise again​

The Australian share market looks set to rise again on Monday after a great finish on Wall Street on Friday.

According to the latest SPI futures, the ASX 200 is expected to open the day 16 points higher.

U.S. stocks closed out their best week of the year with more gains on Friday and climbed to the cusp of their records.

The S&P 500 rose 0.5% for a fifth straight gain and is just 0.7% below its all-time high set in July. Rallies for Microsoft, Broadcom and other big technology stocks helped it claw back almost all its losses from last week, which was its worst in nearly 18 months.

The Dow Jones Industrial Average jumped 297 points, or 0.7%, and at one point got within 30 points of its record set last month. The Nasdaq composite added 0.7%.

All told, the S&P 500 rose 30.26 points to 5,626.02. The Dow gained 297.01 to 41,393.78, and the Nasdaq composite added 114.30 to 17,683.98.

 

[bigdog]

Stock market today: Dow sets a record as Wall Street gears up for a cut to interest rates

After recouping its losses from early September, the Dow Jones Industrial Average closed at another all-time high.

apnews.com

Dow sets a record as Wall Street gears up for a cut to interest rates​

By STAN CHOE
Updated 7:23 AM GMT+10, September 17, 2024

NEW YORK (AP) — The Dow Jones Industrial Average set a record after a quiet Monday of trading, as Wall Street geared up for the most anticipated meeting of the Federal Reserve in years.

The Dow rose 228 points, or 0.6%, to surpass its prior all-time high set a few weeks ago. The S&P 500 index, which is much more comprehensive and widely followed on Wall Street, ticked up by 0.1% to climb within 0.6% of its own record set in July.

The Nasdaq composite slipped 0.5% as big technology stocks and other market superstars gave back a bit of their big gains from recent years.

Most stocks rose on Wall Street, and Oracle’s gain of 5.1% helped lead the market. The software company continued a strong run that began last week with a better-than-expected profit report.

Alcoa also jumped 6.1% after saying it would sell its ownership stake in a Saudi Arabian joint venture to Saudi Arabian Mining Co. for $950 million in stock and $150 million in cash. But drops for some influential Big Tech stocks kept indexes in check, including declines of 2.8% for Apple and 1.9% for Nvidia. They’re among the market’s most influential stocks because they’re among the largest by market value.

Stock indexes have been taking a jagged, scary ride toward their records. After worries about the U.S. economy and other hiccups in global markets briefly sent the S&P 500 nearly 10% below its all-time high last month, the S&P 500 is just one middling day away from its record on excitement about coming cuts to interest rates.

Treasury yields eased in the bond market ahead of Wednesday’s meeting for the Federal Reserve, where it’s expected to cut its main interest rate for the first time in more than four years.

The only question is by how much relief for the economy the Fed will deliver. Traders are shifting more bets toward a larger-than-usual move of half a percentage point, according to data from CME Group. They’re anticipating a 63% chance the Fed will go beyond the traditional cut of a quarter of a percentage point. That’s up from 50% on Friday and just 30% a week ago.

The difference between a half-point cut and a quarter may sound academic, but it can have far-ranging effects. Lowering rates relieves pressure on the economy, but it can also give inflation more fuel.

The Federal Reserve has been keeping its main interest rate at a two-decade high in hopes of slowing the economy enough to stifle high inflation. With inflation having eased substantially from its peak two summers ago, the Fed has said it can turn more focus to bolstering the slowing job market and economy. Some critics say it may be moving too late, increasing the risk of a possible recession.

A Fed cut of half a percentage point would likely be the best case for the stock market in the very short term, according to Michael Wilson and other strategists at Morgan Stanley. But that’s only if the Fed can convince investors it’s not getting forced into a bigger-than-usual cut because of worries about a recession, among other factors.

The more important thing over the next three to six months will be how well the job market holds up, according to Wilson. If employment weakens, stocks could fall regardless of whether the Fed cuts by half or a quarter of a percentage point on Wednesday.

In the bond market, the yield on the 10-year Treasury fell to 3.62% from 3.66% late Friday. The two-year yield, which moves more closely with expectations for the Fed, eased to 3.56% from 3.59%.

That was despite a report in the morning showing manufacturing in New York state returned to growth. That surprised economists, who were expecting another month of contraction for an area of the economy that’s been hit hard by high interest rates.

On Wall Street, Carl Icahn’s Icahn Enterprises rose 14.5% after it said a U.S. judge dismissed a proposed class-action lawsuit against the company, one based on allegations by a research firm that looks for financial irregularities at companies and tries to profit when the stock prices fall.

Fertilizer producer Mosaic fell 3.6% after it said electrical equipment failures at mines and Hurricane Francine will reduce its production of potash and phosphate in the current quarter.

All told, the S&P 500 rose 7.07 points to 5,633.09. The Dow added 228.30 to 41,622.08, and the Nasdaq composite fell 91.85 to 17,592.13.

In stock markets abroad, indexes were mixed amid mostly modest movements across Europe and Asia. Hong Kong’s Hang Seng added 0.3% after data released over the weekend showed China’s economy slowed further in August.

Markets in Japan, mainland China and South Korea were closed for holidays.

ASX 200 expected to rise again​

The Australian share market is expected to rise again on Tuesday following a relatively positive start to the week in the United States.

According to the latest SPI futures, the ASX 200 is poised to open the day 16 points or 0.7% higher.

The Dow Jones Industrial Average set a record after a quiet Monday of trading, as Wall Street geared up for the most anticipated meeting of the Federal Reserve in years.

The Dow rose 228 points, or 0.6%, to surpass its prior all-time high set a few weeks ago. The S&P 500 index, which is much more comprehensive and widely followed on Wall Street, ticked up by 0.1% to climb within 0.6% of its own record set in July.

The Nasdaq composite slipped 0.5% as big technology stocks and other market superstars gave back a bit of their big gains from recent years.

All told, the S&P 500 rose 7.07 points to 5,633.09. The Dow added 228.30 to 41,622.08, and the Nasdaq composite fell 91.85 to 17,592.13.

 

[bigdog]

Stock market today: Wall Street stays stuck in place as it counts down to a rate cut

U.S. stock indexes remained stuck in place as Wall Street made few big moves ahead of what’s expected to be the first cut to interest rates in more than four years.

apnews.com

Wall Street stays stuck in place as it counts down to a rate cut​

By STAN CHOE
Updated 7:08 AM GMT+10, September 18, 2024

NEW YORK (AP) — U.S. stock indexes remained stuck in place on Tuesday as Wall Street made few big moves ahead of what’s expected to be the first cut to interest rates in more than four years.

The S&P 500 edged up by 1.49, or less than 0.1%, to 5,634.58. It remains 0.6% below its all-time closing high set in July, and it briefly rose above that mark during the morning.

The Dow Jones Industrial Average slipped 15.90 points, or less than 0.1%, to 41,606.18 from its own record set the day before, while the Nasdaq composite edged up by 35.93, or 0.2%, to 17,628.06.

Intel helped drive the market with a gain of 2.7% following a series of announcements, including an expansion of its partnership with Amazon Web Services to produce custom chips. Intel also detailed plans to build its foundry business.

That helped offset a 2.2% drop for Philip Morris International, which said it expects to record a loss of $220 million against its third-quarter results because of the sale of its Vectura Group inhaled-therapeutics subsidiary.
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The calm movements for the U.S. stock market overall were a sharp departure from prior weeks, during which the S&P 500 briefly fell nearly 10% below its all-time high. At the time, global markets were reeling on worries that a slowing U.S. economy could fall into a recession, along with some technical factors that forced hedge funds around the world to back out of a popular trade all at once.

Since then, excitement has built about an announcement scheduled for Wednesday afternoon from the Federal Reserve. The unanimous expectation on Wall Street is that the Fed will cut the federal funds rate, which has been sitting in a range of 5.25% to 5.50% for more than a year.

Lower rates would make things easier for the economy, which has already begun to slow because it’s become so expensive to borrow money for everything from houses to cars to corporate debt. The Fed has been keeping its main interest rate at a two-decade high in hopes of grinding down on the economy enough to stifle high inflation.

Now that inflation is down substantially from its peak two summers ago, the Fed believes it can shift its focus more toward protecting the job market and economy. The only question is how much the Fed will cut rates by, and that is a delicate balancing act.

While lowering rates gives a boost to the overall economy and to financial markets, it can also give inflation more fuel. Some critics say the Fed is already moving too late to help the economy, while others warn of inflation staying stubbornly higher than it has in the past.

The general expectation on Wall Street is for the Fed to deliver a larger-than-usual cut of half of a percentage point on Wednesday, according to data from CME Group. But it’s not a certainty. Traders are still betting on a 35% probability for a traditional-sized move of a quarter of a percentage point,

Economic reports released Tuesday did little to change those expectations. One said U.S. shoppers spent more at retailers last month than expected. That’s an encouraging signal indicating strength for the heart of the U.S. economy, but details underneath the surface may have been more discouraging. After ignoring automobiles and fuel, sales at U.S. retailers last month were a touch weaker than economists expected.

“This data isn’t going to decide the issue for the Fed, one way or the other,” Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley, said about the size of Wednesday’s rate cut.

A separate report that came later in the morning said U.S. industrial production returned to growth in August and was stronger than economists expected.

In the bond market, the 10-year Treasury yield rose to 3.64% from 3.62% late Monday. The two-year yield, which more closely tracks expectations for the Fed’s actions, rose to 3.59% from 3.56%.

In stock markets abroad, Japan’s Nikkei 225 fell 1% after the value the Japanese yen ticked higher against the U.S. dollar.

The yen has been rising on expectations the Bank of Japan will continue to head in the opposite direction of the Federal Reserve and keep raising interest rates. A stronger yen can hurt the profits of Japan’s big exporters.

Stock indexes rose modestly across much of Europe, while markets were closed in mainland China and South Korea.

ASX 200 expected to edge higher​

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

According to the latest SPI futures, the ASX 200 is expected to open the day 16 points or 0.5% higher.

U.S. stock indexes remained stuck in place on Tuesday as Wall Street made few big moves ahead of what’s expected to be the first cut to interest rates in more than four years.

The S&P 500 edged up by 1.49, or less than 0.1%, to 5,634.58. It remains 0.6% below its all-time closing high set in July, and it briefly rose above that mark during the morning.

The Dow Jones Industrial Average slipped 15.90 points, or less than 0.1%, to 41,606.18 from its own record set the day before, while the Nasdaq composite edged up by 35.93, or 0.2%, to 17,628.06.

 

[Skate]

ASX 200 expected to edge higher​

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

According to the latest SPI futures, the ASX 200 is expected to open the day 16 points or 0.5% higher.

@bigdog, is this correct?

The ASX is set to retreat

Skate.

 

[divs4ever]

@bigdog, is this correct?

The ASX is set to retreat

View attachment 184387

Skate.

-3 according to Commsec but i note the US markets staged some sort of recovery late in the trading day

and US futures are all slightly green

 

[divs4ever]

interestingly
Commsec has the SPI now at - 39

but we will find out very shortly

 

[eskys]

Commsec and MI said spi down, Westpac and bigdog's site said up...is it any wonder we get so muddled up. If in doubt, check BBOZ before open. It's a fairly good indication I reckon.

 

[bigdog]

I have been using Westpac which is wrong and has been +16 for a few days

It was + 16 this morning and currently +16 and Wespac is wrong

Thank eskys and Skate for pointing out

What site do you recommend

What is BBOZ?

 

[eskys]

Apologies for the late reply, @bigdog. I wasn't around much yesterday.

There's no recommended site for spi if that's what you were asking. Investing.com has live futures, but I found that it wasn't reliable in the past, so haven't looked there for a long time. Nowadays, I look at MI, Commsec and your post. Sometimes I look at BBOZ, which is a stock code which trades online like shares but are a different instrument.Works opposite to the market, ie, if the market goes down, BBOZ goes up. If you type that code in on your platform, you'll see the price. For trading BBOZ, it's handy to have nabtrade. They have depth and detail.Hope that helps (This is too early to judge, the time of posting is 0640hrs)

Market DepthLaunch in a new window
Market Detail

Buyers
Quantity	Price

Sellers
Price	Quantity

40Buyers
31,796Shares
98Sellers
90,340Shares


BetaShares Australian Equities Strong Bear Hedge Fund (BBOZ) is a managed investment fund whose units will trade on the ASX, much like ordinary shares. The Australian Equities Strong Bear Fund aims to help investors profit from, or protect against, a declining Australian share market.

 

[bigdog]

Stock market today: Most of Wall Street edges lower after Fed delivers a big cut to rates

Most of the U.S. stock market edged lower after the Federal Reserve kicked off its efforts to prevent a recession with a bigger-than-usual cut to interest rates.

apnews.com

Most of Wall Street edges lower after Fed delivers a big cut to rates​

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

NEW YORK (AP) — U.S. stock indexes edged lower Wednesday after the Federal Reserve kicked off its efforts to prevent a recession with a bigger-than-usual cut to interest rates.

The S&P 500 slipped 0.3% to pull 0.9% below its all-time high set in July. The Dow Jones Industrial Average dipped 103 points, or 0.2%, though it remains close to its record set on Monday. The Nasdaq composite lost 0.3%.

The momentous move by the Fed helps financial markets in two big ways. It eases the brakes off the economy, which has been slowing under the weight of higher rates, and it gives a boost to prices for all kinds of investments. Besides stocks, gold and bond prices had already rallied in recent months on expectations that cuts to rates were coming.

Because the move was so well telegraphed, and because markets had already climbed so much in anticipation of it, Wall Street’s reactions were relatively muted despite the Fed’s 180-degree turn on rate policy. It marked the first cut to the federal funds rate in over four years, and it closed the door on a stretch where the Fed kept rates at a two-decade high to slow the economy enough to stifle the worst inflation in generations.

Now that inflation has eased significantly from its peak two summers ago and appears to be heading toward 2%, the Fed says it it can turn more of its attention toward protecting the slowing job market and overall economy.

“The time to support the labor market is when it’s strong and not when you begin to see the layoffs,” Fed Chair Jerome Powell said. “That’s the situation we’re in.”

The only question is how much the Fed will ultimately cut rates by to do so, which can prove to be a tricky balance. Lowering rates would help the economy by making it easier for U.S. businesses and households to borrow. But it could also offer more fuel for inflation.

The Fed released forecasts Wednesday that said its median official expects to cut the federal funds rate by another half of a percentage point through the end of the year. That could mean a traditional-sized cut of a quarter of a percentage point at each of its two remaining meetings scheduled for 2024.

After that, the median Fed official is projecting another full percentage point of cuts during 2025.

Some critics say the Federal Reserve may have already kept interest rates too high for too long, doing damage to the economy.

“When the Fed is behind the curve, it sometimes takes a big move to catch up to where they should have been all along,” said Brian Jacobsen, chief economist at Annex Wealth Management.

“We don’t think we’re behind,” Powell said in a press conference following the Fed’s announcement. “We think this is timely. But I think you can take this as a sign of our commitment not to get behind,” pointing to Wednesday’s hefty cut of half a percentage point. Powell called it a “good strong start to this.”

Other critics, meanwhile, say the Fed will need to be careful about cutting rates too much because of the possibility that inflation will remain stubbornly higher than it’s been in recent decades.

Powell repeated several times that the Fed does not feel “a rush to get this done” and will make its decisions on interest rates at each successive meeting, depending on what incoming data say.

“We’ll move as fast or as slow as we think is appropriate in real time,” he said. For now, he said, “the U.S. economy is in a good place, and our decision today is designed to keep it there.”

Like stock prices, Treasury yields wavered up and down repeatedly immediately after the Fed announced its cut and published its projections.

The 10-year Treasury yield eventually rose to 3.70% from 3.65% late Tuesday. The two-year yield, which more closely follows expectations for Fed action, edged up to 3.62% from 3.60% late Tuesday.

On Wall Street, Intuitive Machines soared 38.3% after NASA awarded it with a contract worth up to $4.82 billion for communication and navigation services the space agency will use to establish a long-term presence on the moon.

Trading in Tupperware Brands remained halted after the company filed for Chapter 11 bankruptcy protection. Its stock has been sinking, down to 51 cents, since a mini-revival early in the pandemic sent its stock above $30.

McGrath RentCorp, a company that rents and sells mobile office trailers, portable classrooms and other structures, fell 3.1% after it agreed to terminate its proposed buyout by WillScot following tough scrutiny of the deal from U.S. regulators.

All told, the S&P 500 slipped 16.32 points to 5,618.26. The Dow dropped 103.08 to 41,503.10, and the Nasdaq composite lost 54.76 to 17,573.30.

In stock markets abroad, indexes fell modestly in Europe after rising in much of Asia.

The Bank of Japan and the Bank of England are also holding monetary policy meetings later this week. Neither central bank is expected to move on rates, though the language of what the officials say could be an indicator of later moves and still influence markets.

ASX 200 expected to fall​

It looks set to be a poor session for Aussie investors on Thursday following a disappointing night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 31 points or 0.4% lower to 8,111 this morning.

U.S. stock indexes edged lower Wednesday after the Federal Reserve kicked off its efforts to prevent a recession with a bigger-than-usual cut to interest rates.

The S&P 500 slipped 0.3% to pull 0.9% below its all-time high set in July. The Dow Jones Industrial Average dipped 103 points, or 0.2%, though it remains close to its record set on Monday. The Nasdaq composite lost 0.3%.

All told, the S&P 500 slipped 16.32 points to 5,618.26. The Dow dropped 103.08 to 41,503.10, and the Nasdaq composite lost 54.76 to 17,573.30.

 

[bigdog]

Wall Street soars to records as Dow leaps 500 in a rate-cut rally that swept the world

Wall Street romped to records as a delayed jubilation swept markets worldwide following the Federal Reserve’s big cut to interest rates.

apnews.com

Wall Street soars to records as Dow leaps 500 in a rate-cut rally that swept the world​

By STAN CHOE
Updated 7:01 AM GMT+10, September 20, 2024

NEW YORK (AP) — Wall Street romped to records Thursday as a delayed jubilation swept markets worldwide following the Federal Reserve’s big cut to interest rates.

The S&P 500 jumped 1.7% for one of its best days of the year and topped its last all-time high set in July. The Dow Jones Industrial Average leaped 522 points, or 1.3%, to beat its own record set on Monday, and the Nasdaq composite led the market with a 2.5% spurt.

The rally was widespread, and the company behind Olive Garden and Ruth’s Chris, Darden Restaurants, led the way in the S&P 500 with a jump of 8.3%. It said sales trends have been improving since a sharp step down in July, and it announced a delivery partnership with Uber.

Nvidia, meanwhile, barreled 4% higher and was one of the strongest forces lifting the S&P 500. Lower interest rates weaken criticism by a bit that its shares and those of other influential Big Tech companies look too expensive following the frenzy around artificial-intelligence technology.

Wall Street’s gains followed rallies for markets across Europe and Asia after the Federal Reserve delivered the first cut to interest rates in more than four years late on Wednesday.

It was a momentous move, closing the door on a run where the Fed kept its main interest rate at a two-decade high in hopes of slowing the U.S. economy enough to stamp out high inflation. Now that inflation has come down from its peak two summers ago, Chair Jerome Powell said the Fed can focus more on keeping the job market solid and the economy out of a recession.

Wall Street is having a delayed reaction to an interest rate cut. More from AP’s Seth Sutel.

Wall Street’s initial reaction to Wednesday’s cut was a yawn, after markets had already run up for months on expectations for coming reductions to rates. Stocks ended up edging lower after swinging a few times.

“Yet we come in today and have a reversal of the reversal,” said Jonathan Krinsky, chief market technician at BTIG. He said he did not anticipate such a big jump for stocks on Thursday.

Some analysts said the market could be relieved that the Fed’s Powell was able to thread the needle in his press conference and suggest the deeper-than-usual cut was just a “recalibration” of policy and not an urgent move it had to take to prevent a recession.

That bolstered hopes the Federal Reserve can successfully walk its tightrope and get inflation down to its 2% target without a recession. So too did a couple reports on the economy released Thursday. One showed fewer workers applied for unemployment benefits last week, another signal that layoffs across the country remain low.

The pressure is nevertheless still on the Fed because the job market and hiring have begun to slow under the weight of higher interest rates. Some critics say the central bank waited too long to cut rates and may have damaged the economy.

Powell, though, said Fed officials are not in “a rush to get this done” and would make decisions on policy at each successive meeting depending on what the incoming data says.

Some investment banks raised their forecasts for how much the Federal Reserve will ultimately cut interest rates, anticipating even deeper reductions than Fed officials. Forecasts released Wednesday show Fed officials expect to cut interest rates by another half of a percentage point in 2024 and another full point in 2025. The federal funds rate is currently sitting in a range of 4.75% to 5%.
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Lower interest rates help financial markets in two big ways. They ease the brakes off the economy by making it easier for U.S. households and businesses to borrow money. They also give a boost to prices of all kinds of investments, from gold to bonds to cryptocurrencies. Bitcoin rose above $63,000 Thursday, up from about $27,000 a year ago.

An adage suggests investors should not “fight the Fed” and should instead ride the rising tide when the central bank is cutting interest rates. Wall Street was certainly doing that Thursday. But this economic cycle has thrown out conventional wisdoms repeatedly after the COVID-19 pandemic created an instant recession that gave way to the worst inflation in generations.

Wall Street is worried that inflation could remain tougher to fully subdue than in the past. And while lower rates can help goose the economy, they can also give inflation more fuel.

The upcoming U.S. presidential election could also keep uncertainty reigning in the market. A fear is that both the Democrats and Republicans could push for policies that add to the U.S. government’s debt, which could keep upward pressure on interest rates regardless of the Fed’s moves.

History may also offer few clues about how things may progress given how unusual the conditions are. This looks to be beginning with higher expectations for rate cuts than past easing cycles, according to strategists at Bank of America.

The economic conditions of this cycle may resemble 1995 a bit, but unfortunately “no great analogs exist,” the strategists led by Alex Cohen wrote in a BofA Global Research report.

In the bond market, the yield on the 10-year Treasury held steady at 3.71%, where it was late Wednesday. The two-year Treasury yield, which more closely tracks expectations for Fed action, fell to 3.58% from 3.63%.

On Wall Street, the S&P 500 rose 95.38 points to 5,713.64. The Dow jumped 522.09 to 42,025.19, and the Nasdaq composite leaped 440.68 to 18,013.98.

In stock markets aboard, indexes climbed even more across the Atlantic and Pacific oceans. They rose 2.3% in France, 2.1% in Japan and 2% in Hong Kong.

The FTSE 100 added 0.9% in London after the Bank of England kept interest rates there on hold. The next big move for a central bank arrives Friday, when the Bank of Japan will announce its latest decision on interest rates.

ASX 200 expected to rise again​

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

According to the latest SPI futures, the ASX 200 is expected to open 0.4% higher to 8282 points this morning.

Wall Street romped to records Thursday as a delayed jubilation swept markets worldwide following the Federal Reserve’s big cut to interest rates.

The S&P 500 jumped 1.7% for one of its best days of the year and topped its last all-time high set in July. The Dow Jones Industrial Average leaped 522 points, or 1.3%, to beat its own record set on Monday, and the Nasdaq composite led the market with a 2.5% spurt.

On Wall Street, the S&P 500 rose 95.38 points to 5,713.64. The Dow jumped 522.09 to 42,025.19, and the Nasdaq composite leaped 440.68 to 18,013.98

​

 

[bigdog]

Stock market today: Wall Street closes its record-setting week mixed as FedEx slumps and Nike jumps

U.S. stocks drifted around their all-time highs, as a record-setting week for Wall Street closed on a quieter note.

apnews.com

Wall Street closes its record-setting week mixed as FedEx slumps and Nike jumps​

By STAN CHOE
Updated 7:06 AM GMT+10, September 21, 2024

NEW YORK (AP) — A record-setting week for Wall Street closed on a quieter note Friday, as U.S. stocks drifted around the highs they hit during a worldwide rally the day before.

The S&P 500 slipped 0.2% from its record, and the Nasdaq composite fell 0.4%. The Dow Jones Industrial Average, meanwhile, added 38 points, or 0.1%, to its all-time high.

FedEx dragged on the market with a drop of 15.2% after its profit and revenue for the latest quarter fell short of analysts’ expectations. It said U.S. customers sent fewer packages through priority services, while it had to contend with higher wages for workers and other costs. FedEx also cut its forecast for revenue growth for its fiscal year.

Helping to limit the market’s losses was Nike, which ran 6.8% higher after it named Elliott Hill as its chief executive. Hill, 60, had spent more than three decades at Nike in various leadership positions before retiring in 2020. Constellation Energy also leaped 22.3% after announcing it will restart the Three Mile Island nuclear plant and sell the power to Microsoft.

Shares in Trump Media and Technology Group fell 7.8% as its biggest shareholder, former President Donald Trump, won the freedom to sell his shares if he wants.

Trump owns more than half of the $2.7 billion company behind the Truth Social platform. But Trump and other insiders in the company had been unable to cash in because a “lock-up agreement” prevented them from selling any of their shares. Before the lockup expired, Trump said he was in no rush to sell.

TMTG stock has dropped below $14 from more than $60 in March, and it’s taken a roller-coaster ride there. Over the last six months, the stock has often swung by at least 5% in a day, up or down.

Homebuilder Lennar fell 5.3% after delivering a mixed earnings report. Its profit for the latest quarter topped expectations. But it also said it made less in profit on each $100 of home sales, and it expects that margin to stay flat in the current quarter.

Conditions may be set to improve for homebuilders, though. The Federal Reserve earlier this week cut its main interest rate for the first time in more than four years, with more likely to come. That could make mortgages more affordable for home buyers.

The cut closed the door on a run where the Fed kept its main interest rate at a two-decade high in hopes of slowing the U.S. economy enough to stamp out high inflation. Now that inflation has fallen from its peak two summers ago, Chair Jerome Powell said the Fed can focus more on keeping the job market solid and the economy out of a recession.

The Fed is still under pressure because hiring has begun to slow under the weight of higher interest rates. Some critics say the central bank waited too long to cut rates and may have damaged the economy.

Critics also say the U.S. stock market may be running too hot on the belief the Federal Reserve will pull off what seemed nearly impossible earlier: getting inflation down to 2% without creating a recession.

Barry Bannister, chief equity strategist at Stifel, is still calling for a sharp drop for the S&P 500 by the end of the year. He points to how much faster stock prices have climbed than profits at companies. When stocks have looked this expensive on such measures in the past, he said a recession and sharp downturn for stocks has followed.

He also warned in a report that slowing hiring “is now symbolic of recession risk.”

No economic releases were on the calendar for Friday to show where the economy may be heading. Next week will have preliminary reports on U.S. business activity, the final revision for how quickly the economy grew during the spring and the latest update on spending by U.S. consumers.

The S&P 500 ended this week at 5,702.55 after slipping 11.09 points. The Dow rose 38.17 to 42,063.36, and the Nasdaq fell 65.66 to 17,948.32.

In the bond market, the yield on the 10-year Treasury ticked up to 3.74% from 3.72% late Thursday.

In stock markets abroad, indexes slumped across much of Europe after rising in Asia. Tokyo’s Nikkei 225 rose 1.5% after the Bank of Japan left interest rates steady, as was expected.

 

[bigdog]

ASX 200 expected to fall​

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

According to the latest SPI futures, the ASX 200 is expected to open the day 68 points or 0.8% lower.

A record-setting week for Wall Street closed on a quieter note Friday, as U.S. stocks drifted around the highs they hit during a worldwide rally the day before.

The S&P 500 slipped 0.2% from its record, and the Nasdaq composite fell 0.4%. The Dow Jones Industrial Average, meanwhile, added 38 points, or 0.1%, to its all-time high.

The S&P 500 ended this week at 5,702.55 after slipping 11.09 points. The Dow rose 38.17 to 42,063.36, and the Nasdaq fell 65.66 to 17,948.32.

 

[bigdog]

Stock market today: Wall Street drifts higher to set more records

U.S. stock indexes reached new heights after drifting higher in a quiet day of trading. The S&P 500 rose 0.3% Monday to edge past its record set on Thursday.

apnews.com

Wall Street drifts higher to set more records​

By STAN CHOE
Updated 7:12 AM GMT+10, September 24, 2024

NEW YORK (AP) — U.S. stock indexes reached new heights Monday after drifting higher in a quiet day of trading.

The S&P 500 rose 16.02 points, or 0.3%, to 5,718.57 and edged past its record set on Thursday. The Dow Jones Industrial Average added 61.29 points, or 0.1%, to its own all-time high set on Friday and closed at 42,124.65. The Nasdaq composite gained 25.95, or 0.1%, to 17,974.27.

Tesla led the way with a gain of 4.9% and clawed back all its sharp losses from earlier in the year. It was down as much as 42% at one point in April, when it was cutting prices on its cars to boost flaccid sales.

That helped offset a 10.3% tumble for Trump Media & Technology Group, which fell to its lowest price since taking its place on the Nasdaq stock market in March. The company behind former President Donald Trump’s Truth Social network has dropped six straight days amid speculation about when Trump and other company insiders may sell their shares now that they’re no longer bound by a “lock-up” agreement. Trump has said he doesn’t plan to sell.

Financial markets have broadly been romping higher after the Federal Reserve last week cut its main interest rate for the first time in more than four years by an unusually large amount. The hope is that as it continues to cut interest rates, the boost given to the U.S. economy through lower rates for car loans, mortgages and other borrowing will help it avoid a recession.

But some critics say the Federal Reserve may be moving too late, with the job market already slowing, and call stock prices too high.

A report on Monday morning suggested U.S. business activity is not growing as quickly as economists expected, mostly because of a continued downturn in manufacturing. The preliminary report from S&P Global said U.S. manufacturing shrank more severely in September than in August and hit a 15-month low. It’s been one of the parts of the economy hurt most by high interest rates.

Markets are starting the week where they left off. More from AP’s Seth Sutel.

The overall figures suggest a U.S. economy that’s still growing at a healthy rate, according to Chris Williamson, chief business economist at S&P Global Market Intelligence. “But there are some warning lights flashing, notably in terms of the dependence on the service sector for growth, as manufacturing remained in decline, and the worrying drop in business confidence.”

He also pointed to subdued business expectations given uncertainty heading into the U.S. elections in November.

Several economic reports coming later in the week could offer more context about where the U.S. economy stands. One on Thursday will offer the final revision for the U.S. economy’s growth in the spring, and another on Friday will give a look at how much U.S. consumers are spending.

Such reports, particularly on employment, are taking top priority on Wall Street because the main fear is now a slowdown in the job market. It’s a notable shift from prior years, when Wall Street’s attention was fixed on anything related to inflation.

But now that inflation has come down substantially from its peak two summers ago, the Fed has shifted gears.

It feels less need to keep rates high in order to slow the economy enough to stifle inflation, hence last week’s cut of half a percentage point to its main interest rate. And it feels more pressure to prop up the job market and overall economy, hence its plans to keep cutting interest rates this year and next.

In the bond market, the yield on the 10-year Treasury held steady at 3.74%, where it was late Friday. The yield on the two-year Treasury, which moves more with expectations for Fed action, edged down to 3.58% from 3.60% late Friday.

In stock markets abroad, indexes rose modestly in Europe after preliminary data suggested business activity in the euro zone is weaker than economists expected. Germany’s DAX rose 0.7%, while the French CAC 40 rose 0.1%.

In Asia, movements for indexes were also muted. Indexes rose 0.4% in Shanghai but slipped 0.1% in Hong Kong after China’s central bank lowered its 14-day reverse repurchase rate on Monday. That followed its decision last week to keep key lending rates unchange, when investors had been expecting a cut.

ASX 200 expected to fall​

The Australian share market is expected to fall on Tuesday following a positive start to the week in the United States.

According to the latest SPI futures, the ASX 200 is poised to open the day 9 points or 0.1% lower.
U.S. stock indexes reached new heights Monday after drifting higher in a quiet day of trading.

The S&P 500 rose 16.02 points, or 0.3%, to 5,718.57 and edged past its record set on Thursday. The Dow Jones Industrial Average added 61.29 points, or 0.1%, to its own all-time high set on Friday and closed at 42,124.65. The Nasdaq composite gained 25.95, or 0.1%, to 17,974.27.

 

[bigdog]

Stock market today: Wall Street drifts to more records after Chinese stocks soar

U.S. stocks drifted to more records in a quiet day of trading. The S&P 500 rose 0.3% Tuesday to set an all-time high for the 41st time this year.

apnews.com

Wall Street drifts to more records after Chinese stocks soar​

By STAN CHOE
Updated 7:16 AM GMT+10, September 25, 2024

NEW YORK (AP) — U.S. stocks drifted to more records Tuesday after Chinese stocks soared following a slew of moves by the Chinese central bank to prop up the world’s second-largest economy.

The S&P 500 rose 0.3% to set an all-time high for the 41st time this year. The movements were tentative, though, and the index wavered up and down following a surprisingly weak report released in the morning on confidence among U.S. consumers.

The Dow Jones Industrial Average added 83 points, or 0.2%, to its own record set the day before, while the Nasdaq composite gained 0.6%.

Financial markets have been mostly ebullient after the Federal Reserve made a drastic turn last week in how it sets interest rates. It’s now lowering rates to make things easier for the U.S. economy after keeping them high for years in hopes of extinguishing high inflation.

One of the risks still hanging over the market is the struggling Chinese economy and how much its flagging growth may affect the rest of the world. After earlier delivering some modest and piecemeal moves, the chief of China’s central bank on Tuesday announced a broad set of changes to bolster its economy, including a reduction in the amount of reserves banks are required to keep.

Analysts called the coordinated moves encouraging, and they helped stocks soar in China. Indexes jumped 4.2% in Shanghai and 4.1% in Hong Kong. But questions still remain about how much they will boost the economy, which has been struggling since Chinese authorities cracked down on excessive borrowing by property developers.

Prices climbed for crude oil and other commodities that a healthy Chinese economy would devour. Copper rose 3.3%.

Another risk hanging over Wall Street is the slowing U.S. job market. Now that inflation has eased substantially from its peak two summers ago, the main worry occupying investors is that a slowdown in hiring by U.S. companies may worsen.

Moves to interest rates can take a notoriously long time to make their way fully through the economy, and the Federal Reserve kept its main interest rate at a two-decade high for more than a year before last week. It did cut by an unusually large amount in hopes of providing relief to the job market and economy.

A report released Tuesday showed U.S. households are feeling more worried about the job market. Their overall confidence level sank in September, according to the Conference Board, instead of rising like economists expected. That’s a big deal because spending by U.S. consumers is the heart of the U.S. economy.

AutoZone’s stock slipped 0.2% after the seller of auto replacement parts and accessories said a key measure of its sales performance among its U.S. stores barely grew during the latest quarter. It was part of an underwhelming report where its profit and revenue both fell short of analysts’ expectations.

AutoZone said it’s continuing to see customers at its U.S. stores delay purchases of non-essentials.

Another company that depends on the appetite of U.S. shoppers for non-essentials, Thor Industries, rose 6.1% following a mixed profit report. The maker of recreational vehicles reported better profit and revenue for the latest quarter than analysts expected, but it also gave a forecast for its upcoming fiscal year that sees the RV market continuing to be challenged.

“The talk of a softer market is beginning to sound like a broken record, but we remained focused on managing through it with increasing efficiency,” CEO Bob Martin said.

One of Wall Street’s bigger winners was Smartsheet, which helps companies manage projects and automate workflows. It rose 6.5% after Blackstone and Vista Equity Partners agreed to buy it in an all-cash deal valued at $8.4 billion.

In the bond market, Treasury yields slipped following the weaker-than-expected report on consumer confidence. The 10-year yield fell to 3.73%, from 3.75% late Monday. The two-year yield, which more closely tracks expectations for the Fed’s upcoming moves, fell to 3.53% from 3.59% late Monday.

Yields sank as traders upped their forecasts for how much the Federal Reserve will cut interest rates by at its next meeting in November. They’re now betting on a nearly 61% probability of another bigger-than-usual cut of half a percentage point. That’s up from a 53% probability the day before, according to data from CME Group.

Wall Street loves lower interest rates because they can give the economy a boost by making it less expensive to borrow money to buy a car, house or things on credit cards. They also tend to give a boost to prices for all kinds of investments.

Nvidia’s jump of 4% was the strongest force lifting the S&P 500 index Tuesday. The chip company’s stock had sunk 27% during the summer on worries that its price had shot too high in the frenzy around artificial-intelligence technology. But lower rates dampen that criticism by a bit, and Nvidia has been rallying back since early August.

All told, the S&P 500 rose 14.36 points to 5,732.93. The Dow added 83.57 to 42,208.22, and the Nasdaq composite gained 100.25 to 18,074.52.

In stock markets abroad, indexes rose across much of Europe and Asia. France’s CAC 40 jumped 1.3%, South Korea’s Kospi rose 1.1% and Japan’s Nikkei 225 added 0.6%.

ASX 200 expected to rise

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

According to the latest SPI futures, the ASX 200 is expected to open the day 25 points or 0.27% higher.

U.S. stocks drifted to more records Tuesday after Chinese stocks soared following a slew of moves by the Chinese central bank to prop up the world’s second-largest economy.

The S&P 500 rose 0.3% to set an all-time high for the 41st time this year. The movements were tentative, though, and the index wavered up and down following a surprisingly weak report released in the morning on confidence among U.S. consumers.

The Dow Jones Industrial Average added 83 points, or 0.2%, to its own record set the day before, while the Nasdaq composite gained 0.6%

All told, the S&P 500 rose 14.36 points to 5,732.93. The Dow added 83.57 to 42,208.22, and the Nasdaq composite gained 100.25 to 18,074.52.