Category Archives: Stock Market

Stocks Drop Again To Start Week

U.S. equities fell Monday morning, but traded off their lows, as U.S. oil prices pulled back from their highest level since 2008 amid the ongoing war between Russia and Ukraine.

West Texas Intermediate crude futures, the U.S. oil benchmark, traded 6.3% higher to $122.96 per barrel, earlier hitting $130 per barrel at one point before pulling back partially. The international benchmark, Brent crude, traded 6.24% higher to $125.51 per barrel after earlier spiking to $139.13 per barrel — its highest since July 2008.

Gas prices surged to their highest level since 2008, with the national average hitting $4.06 a gallon, according to AAA.

Despite the move away from risk, government bond yields rose, indicating less demand for safe-haven assets. The benchmark 10-year Treasury note was most recently at 1.76%, up nearly 4 basis points on the session as inflation worries pushed yields up.

Positive data from the U.S. Labor Department wasn’t enough for investors to shrug off concerns about the war between Russia and Ukraine. On Friday the Bureau of Labor Statistics reported the economy added 678,000 jobs in February. The monthly jobs gain topped economists’ expectations of 440,000 as gauged by Dow Jones. The unemployment rate slipped to 3.8%.

Last, the Dow and S&P 500 slid about 1.3%. The Dow notched its fourth losing week and the S&P 500 closed in correction territory on Friday, down more than 10% from its record close. The Nasdaq Composite lost roughly 2.8% and is also in a technical correction.

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Stocks Lower With Eyes On Ukraine

THURSDAY – Stocks dipped in early morning trading Thursday but were off their lows as strong earnings from Walmart helped boost sentiment.

In early earnings action, Walmart topped expectations and reaffirmed guidance, sending shares up 1.7% in premarket trading and helping to stem losses for futures.

On the economic front, weekly jobless claims numbers came in at 248,000, rising from the previous week and above the 218,000 expected, according to a Dow Jones estimate. Housing permits for January showed a surprise increase, but housing starts lagged expectations.

The S&P 500 in Wednesday’s regular trading session closed little changed, while the Dow shed nearly 55 points and the Nasdaq Composite dipped 0.1%.

The major stock averages came off their lows Wednesday after the release of minutes from the Fed’s January meeting.

The meeting summary showed the Fed is prepared to hike interest rates and reduce its balance sheet soon, as investors had already expected.

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Stocks Rise Ahead of Earnings

U.S. stock futures rose in early morning trading on Wednesday as investors digested another batch of corporate earnings and tech shares looked to build on their rebound.

Through Tuesday’s close, the Nasdaq Composite has gained more than 6% from its recent low on Jan. 27 after falling into correction territory earlier this year.

Mortgage applications dropped 10% week over week, however, as the rise in interest rates in recent months appears to have dampened demand among homebuyers.

Yields have risen this year in part because of a more aggressive stance from the Federal Reserve. Atlanta Fed President Raphael Bostic told CNBC on Wednesday that three rate hikes are possible this year but that the central bank is not locked in to any path and will watch how the economy responds.

On Tuesday, the Dow Jones Industrial Average added more than 370 points, helped by a 7.8% pop in Amgen on the back of its strong earnings report. The S&P 500 also registered a gain, climbing 0.8%. The technology-focused Nasdaq Composite rose 1.3%.

As of the closing bell on Tuesday, nearly 60% of all S&P 500 companies have reported fourth-quarter earnings and roughly 77% have topped Wall Street’s earnings estimates, according to FactSet.

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Stocks Rise After Nasdaq Hits Correction Territory

U.S. stocks posted solid gains Thursday morning, with Nasdaq up nearly 1% the day after dipping into correction territory.

Stocks held their ground even as government bond yields again edged higher, part of a market repricing as the Federal Reserve gets set to tighten monetary policy.

The central bank meets next week, with markets indicating just a slight chance of action on interest rates. However, traders have fully priced in the first of what is expected to be four 0.25 percentage point hikes through 2022.

The two-year Treasury, which is most closely tied to Fed rate policy, most recently yielded about 1.04%, while the benchmark 10-year note was at 1.84%.

Markets were looking ahead to more earnings reports as well as the weekly update on initial jobless claims and existing home sales.

On the economy, the Dow Jones estimate for claims in the week ended Jan. 15 is 225,000, slightly less than the 230,000 from the previous period. Home sales for December are expected to total 6.48 million, a modest 0.3% increase from November, which had posted a gain of 1.9%.

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Stocks Jump After Trump Tweet

THURSDAY – Stocks jumped in early trading Thursday after President Donald Trump said China and the U.S. were zeroing in on a trade deal, lifting hope that an agreement will be reached before a key deadline.

The S&P 500 hit a record high, rising 0.9%. The Dow Jones Industrial Average traded 250 points higher, or 0.9%. The Nasdaq Composite advanced 0.8%.

Trump said in a tweet both sides were getting “VERY close to a BIG DEAL with China. They want it, and so do we!”

His tweet comes after Reuters reported that Trump was meeting with his top trade officials on Thursday ahead of a Sunday trade deadline. If an agreement is not reached by then, additional U.S. levies on Chinese products will take effect.

Stocks started December on the wrong foot as worries around U.S.-China trade relations increased. In the first two sessions of the month, the Dow lost more than 500 points.

Still, the major averages are up sharply for the year. The S&P 500 and Dow have jumped 25.3% and 19.7%, respectively, year to date. The Nasdaq is up around 30%.

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Disappointing Manufacturing Data Drops Stocks

MONDAY – Stocks dropped on Monday, the first trading day of December, as investors digested disappointing economic data along with the latest trade news after capping a month that featured blistering gains.

The Dow Jones Industrial Average fell 251 points, or 0.9%. The S&P 500 pulled back 0.9% while the Nasdaq Composite traded 1.4% lower. The major averages started off the session with slight gains before turning lower.

Shares of Facebook, Amazon, Alphabet and Apple all dropped more than 1%. Netflix traded 2.7% lower. Roku, which has been one of the hottest stocks of 2019, plummeted more than 15%.

The Cboe Volatility Index, which is regarded as the best fear gauge in the market, rose to 14.8 from 12.6.

Monday’s losses came after a strong performance in November. The major averages had their biggest monthly gains since June, rallying to record highs. The S&P 500 climbed 3.4% last month while the Dow advanced 3.7%. The Nasdaq rallied 4.5%.

Manufacturing activity in the U.S. continued to contract last month, the Institute for Supply Management said. The ISM Manufacturing PMI dipped to 48.1 in November. That’s below an estimate of 49.4. Stocks hit their session lows after the data was released.

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Brexit & Trade Worried Hamper Stocks

WEDNESDAY – U.S. stocks were lower Wednesday as worries over U.S.-China trade relations dampened sentiment around a record-setting rally.

The Wall Street Journal reported, citing former Trump administration officials, that the ongoing trade talks could hit an impasse that would derail a so-called “phase one” trade deal. Uncertainty around trade also grew after the Senate passed a bill supporting Hong Kong protesters. This led China to accuse the U.S. of interfering in domestic affairs.

The Dow pulled back from record highs on Tuesday amid losses from Boeing and Home Depot while investors monitored earnings and developments in the U.S.-China trade talks. There is lingering uncertainty among investors about the possibility of a deal between both countries, despite comments last month suggesting they were close to signing a partial agreement.

Elsewhere, investors are awaiting minutes from the Federal Reserve’s October policy meeting at 2 p.m. The U.S. central bank decided to lower the federal funds rate by 25 basis points to a range of 1.5% to 1.75% late last month.

In corporate news, Target shares jumped more than 8% in the premarket after the retailer posted quarterly results that easily beat expectations. Target also raised its full-year profit outlook.

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Stocks Start Thursday Flat

THURSDAY – U.S. stock index futures indicated a flat open Thursday as a move to record highs took a pause amid persisting worries around U.S-China trade relations.

At 8:20 a.m. ET, Dow Jones Industrial Average futures slipped 37 points, pointing to a decline of 21 points at the open. The 30-stock average closed at an all-time high in the previous session. Futures on the S&P 500 — which also eked out a record closing high on Wednesday — and Nasdaq 100 both fell marginally.

Talks between the U.S. and China are thought to have hit a snag over agricultural purchases. The Wall Street Journal reported on Wednesday that Beijing is resisting requests from the White House to curb tech transfers as well as enforcement mechanisms. China is also reportedly wary about committing to specific farm purchases from the U.S.

Chinese Ministry of Commerce spokesman Gao Feng said overnight that both countries are holding “in-depth” discussions about a phase one deal, but noted that the rolling back of some tariffs is key to reaching an agreement.

On the data front, the latest weekly jobless claims will be released at around 8:30 a.m. ET. The Labor Department is poised to report its producer price index (PPI) for October at the same time.

At around 10 a.m. ET, Federal Reserve Chair Jerome Powell will testify before the House Budget Committee on the economic outlook.

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Stocks Tempered By Interest Rate and Tariff Concerns

WEDNESDAY – Stocks slipped on Wednesday as investors digested mixed news around U.S.-China trade talks along with testimony from the highest-ranking Federal Reserve official.

The Dow Jones Industrial Average traded lower a fraction of a percent. The S&P 500 dipped 0.3% while the Nasdaq Composite also slid 0.3%.

Both the S&P 500 and Nasdaq both notched intraday records in the previous session. The Dow came within a hair of its all-time high on Tuesday.

The U.S. and China are reportedly at loggerheads over tariffs as they seek to conclude phase one of their trade deal. The Wall Street Journal reported Tuesday night, citing people familiar with the talks, that the impasse is on whether the U.S. should remove existing tariffs or would only cancel duties that are set to take effect on Dec. 15.

Meanwhile, Fed Chairman Jerome Powell will address the Congressional Joint Economic Committee later in the day. In prepared remarks, he said the path of Fed interest rates is unlikely to change as long as the economy keeps growing.

On the data front, the U.S. consumer price index rose more than expected in October. The index increased by 0.4% last month, the Labor Department said. Economists polled by Reuters expected a gain of 0.3%.

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Stocks Open Lower On Trade Worries

U.S. stock index futures were lower Monday amid lingering U.S.-China trade worries while protests in Hong Kong escalate.

Around 7:30 a.m. ET, Dow Jones Industrial Average futures were down 118 points, indicating a loss of 136 points at the open. S&P 500 and Nasdaq 100 were also lower.

These decline would knock the major averages from record levels reached last week. The Dow notched its eighth record close of the year on Friday while the S&P 500 closed at an all-time high for the 19th time. The Nasdaq, meanwhile, posted a record close for the 14th time in 2019.

President Donald Trump said Friday he had not agreed to roll back tariffs on China. Those comments came after the Chinese commerce ministry said that both sides had agreed to cancel existing tariffs in phases. A U.S. official also reportedly said both sides agreed to roll back the tariffs in tranches.

The stock market’s recent move to record highs comes in part because of improving sentiment around U.S.-China trade talks. With his comments on Friday, Trump dampened trade expectations in the market. 

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