US stocks edge down on virus woes, slowing economy

NEW YORK - The S&P 500 Index closed slightly lower on Monday after erasing early gains as worries about the Delta variant of the coronavirus and a slowing US economy overshadowed optimism around more fiscal stimulus and a strong second-quarter earnings season.

Federal Reserve Governor Christopher Waller said on CNBC late in the session that the Fed could start to reduce its support for the economy by October if the next two monthly jobs reports each show employment rising by 800,000 to 1 million, as he expects. 

He also suggested the Fed could announce in September it would start to reduce its monthly bond purchases, which could lift yields again - not the best news for the stock market. 

Data earlier in the day showed that although US manufacturing grew in July, its pace slowed for a second straight month as spending rotated back to services from goods, and shortages of raw materials persisted. 

The softer-than-expected data also sent US bond yields to their lowest since July 20 and knocked the blue-chip Dow off an intra-day record high hit in early trading. 

“An issue for the market... is the rise of the growth scare", said Rob Haworth, senior investment strategist at US Bank, "Whether it's more restrictions in China with infections rising in 14 provinces now, or questions about how far is the US going to have to go with mask mandates.”

Only four of the 11 S&P sectors traded higher by market close, among them utilities and real estate generally considered safe bets at a time of uncertainty.

The Dow Jones Industrial Average fell 97.31 points, or 0.28 percent, to 34,838.16, the S&P 500 lost 8.1 points, or 0.18 percent, to 4,387.16 and the Nasdaq Composite added 8.39 points, or 0.06 percent, to 14,681.07. Square Inc, the payments firm of Twitter Inc co-founder Jack Dorsey, jumped after it said it would purchase Australian buy now, pay later pioneer Afterpay Ltd for $29 billion. 

With manufacturing activity data coming in weaker than expected, investor focus now turns to services sector data on Wednesday and the Labor Department's monthly jobs report on Friday.

After mixed quarterly reports from technology behemoths last week, all eyes this week are on earnings from companies including Eli Lilly and Co, CVS Health Corp and General Motors Co.

Volume on US exchanges was 8.80 billion shares, compared with the 9.77 billion average for the full session over the last 20 trading days. 

Declining issues outnumbered advancing ones on the NYSE by a 1.07-to-1 ratio; on Nasdaq, a 1.05-to-1 ratio favored advancers.

The S&P 500 posted 76 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 98 new highs and 67 new lows.

-reuters

Asian shares near all-time peak, oil heads to $60 on economic revival hopes

SYDNEY - Asian shares hovered near record highs on Monday while oil edged closer to $60 a barrel on hopes a $1.9 trillion COVID-19 aid package will be passed by US lawmakers as soon as this month just as coronavirus vaccines are being rolled out globally.

MSCI’s broadest index of Asia-Pacific shares outside Japan was last up 0.2 percent at 717.2, not far from last week’s record high of 730.6.

Japan’s Nikkei climbed 0.3 percent while Australian shares advanced 0.5 percent led by technology and mining shares.

E-mini futures for the S&P 500 rose 0.3 percent in early Asian trading.

Hopes of a quicker economic revival and supply curbs by producer group OPEC and its allies pushed oil to its highest level in a year as it edged near $60 a barrel.

Global equity markets have scaled record highs in recent days on hopes of faster economic revival led by successful vaccine rollouts and expectations of a large US pandemic relief package.

On Friday, the Nasdaq and S&P 500 hit all-time highs on stronger-than-expected corporate results in the fourth quarter and as companies were on track to post earnings growth for the first quarter instead of a decline.

The rallies came even as US data painted a dour picture of the country’s labor market with payrolls rising by 49,000, half of what economists were expecting.

The weak report spurred the push for more stimulus, underscoring the need for lawmakers to act on President Joe Biden’s $1.9 trillion COVID-19 relief package.

Biden and his Democratic allies in Congress forged ahead with their stimulus plan on Friday as lawmakers approved a budget outline that will allow them to muscle through in the coming weeks without Republican support.

US Treasury Secretary Janet Yellen predicted the United States would hit full employment next year if Congress can pass its support package.

“That’s a big call given full employment is 4.1 percent, but one that will sit well with the market at a time when the vaccination program is being rolled out efficiently in a number of countries,” said Chris Weston, Melbourne-based chief strategist at Pepperstone.

In currencies, the US dollar came off a four-month high against the Japanese yen to be last at 105.39 following the weak jobs report.

The euro edged up slightly after rising 0.7 percent on Friday to a one-week high of $1.2054. It was last at $1.2044.

The risk-sensitive Australian dollar held near a one-week high at $0.7678.

In commodities, Brent crude and US crude climbed 52 cents each to $59.86 and $0.57.37 respectively.

US gold futures were up 0.2 percent at $1,817 an ounce.

-reuters

Dow, S&P 500 end at record highs after data

NEW YORK - The Dow and the S&P 500 edged up to end at record highs on Friday, wrapping up four straight months of gains, after mixed economic data gave investors little reason to rush into stocks.

After the benchmark S&P 500's latest record closing high - its fourth in the last five sessions - gains may be harder to come by until the market's direction becomes more clear. Payrolls data and a European Central Bank meeting will be the major catalysts next week.

U.S. consumer spending fell for the first time in a year in April, but the decline probably will not change expectations for a rebound in growth this quarter. An inflation gauge rose at its quickest pace since November 2012 while business activity in the U.S. Midwest rose in May at its strongest pace since October 2013.




"Very mixed signals, which prevents bears from getting aggressive and keeps bulls in place. It’s effectively forestalled any real significant directional shift to what we’ve seen thus far," said Peter Kenny, chief executive officer of Clearpool Group in New York.

"This is an unusual time and place in the market, in that we are in a real holding pattern, and the markets are looking for more in the way of confirmation in the way of economic data that suggests our economic activity is accelerating."

Equity investors kept an eye on U.S. Treasury yields. The 10-year note's yield rose after the strong Chicago PMI data, but remained below 2.5 percent, near an 11-month low hit during Thursday's session.

The low yields helped to bolster dividend-paying stocks. High-yielding utilities ranked as the best-performing S&P sector on Friday, up 0.8 percent for the day.

The Dow Jones industrial average rose 18.43 points or 0.11 percent, to 16,717.17. The S&P 500 gained 3.54 points or 0.18 percent, to 1,923.57. The Nasdaq Composite fell 5.33 points or 0.13 percent, to 4,242.62.

Friday's gain lifted the Dow above its previous record close of 16,715.44 set on May 13.

For the week, the Dow rose 0.7 percent, the S&P 500 gained 1.2 percent, and the Nasdaq climbed 1.4 percent.

The Dow gained 0.8 percent for May and the S&P 500 rose 2.1 percent, marking the fourth straight month of gains for both indexes. The Nasdaq, up 3.1 percent, scored its first monthly gain in three.

Big Lots shares jumped 13.1 percent to $42.44 after the closeout retailer posted better-than-expected results and higher sales.

In contrast, shares of apparel retailers Express and Guess slumped a day after the companies forecast disappointing profits for the current quarter amid a sluggish revival in consumer spending. Express shares sank 7.5 percent to $12.61. Guess fell 5.1 percent to $25.50.

Volume was modest, with about 5.92 billion shares traded on U.S. exchanges, slightly above the 5.75 billion average for the month, according to data from BATS Global Markets.

Advancing stocks outnumbered declining ones on the New York Stock Exchange by 1,523 to 1,485. On the Nasdaq, decliners beat advancers by 1,594 to 1,018.

source: interaksyon.com

S&P 500 ends at record high on Fed hopes

NEW YORK - The S&P 500 closed at another record high on Monday as expectations were high that the Federal Reserve will keep its stimulus in place when it meets this week.



But the overall market was little changed, with the Dow and Nasdaq ending down slightly, after the recent sharp run-up in the stock market lost some momentum.



The S&P 500 has risen 6.4 percent since October 8, when it hit its lowest point during the U.S. government's partial shutdown and the debate over raising the debt ceiling. The benchmark index is up 23.6 percent for the year so far.

Relief over the end of the political impasse and investor expectations that the Fed will keep stimulus measures in place for at least several months because of the 16-day shutdown have propped up prices. Fed policymakers will meet on Tuesday and Wednesday.



"I would like to say it's all about people waiting for the Fed, but I don't know what they're waiting for because I don't expect any change in Fed policy this week, given the fact they pointed out repeatedly the fiscal issues they're cognizant of," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.



"My concern with the market at this level is that without signs eliciting some evidence the economy is actually strengthening from the pace we've had, the multiple expansion doesn't seem rational."



Shares of Apple Inc rose 0.7 percent to $529.88 ahead of the release of its earnings, expected after the bell. While Apple's advance helped the S&P 500, the consumer staples sector index .SPLRCS, up 1.2 percent, gave the S&P its biggest boost.



A number of traders appeared to be picking up call options on the Consumer Staples Select Sector SPDR fund, which rose 1.3 percent, on hopes that the sector will continue to perform well through the end of the year.



The Dow Jones industrial average dipped 1.35 points, or 0.01 percent, to end at 15,568.93. The Standard & Poor's 500 Index gained 2.34 points, or 0.13 percent, to finish at a record 1,762.11. The S&P 500 also posted another lifetime intraday high at 1,764.99.


The Nasdaq Composite Index slipped 3.23 points, or 0.08 percent, to close at 3,940.13.

In extended-hours trading, Apple's shares were flat after recovering from a 5 percent drop following the tech bellwether's results. Wall Street had hoped for a stronger beat on quarterly sales after the iPhone maker predicted in September that its revenue and margins would come in at the high end of its own forecasts.

Apple's stock price has climbed 8.8 percent since the end of August.

Among the latest signs that the economy's momentum may be easing, U.S. manufacturing output barely rose in September and contracts to buy previously owned homes recorded their largest drop in nearly 3-1/2 years, according to economic data released on Monday.

On the down side, Dow component Merck & Co fell 2.6 percent to $45.35 and was one of the biggest drags on the Dow after the company reported a decline in sales of its Januvia diabetes treatment, raising concerns about growth prospects for its biggest product.

Biogen Idec posted a rise in its third-quarter profit and boosted its full-year earnings and revenue outlook, sending the U.S. biotech company's stock up 0.9 percent to $254.43.

Based on Thomson Reuters data through Monday morning, S&P 500 earnings are expected to have risen just 3.4 percent in the third quarter over the year-ago period.

Of the 249 companies in the S&P 500 that have reported earnings so far, 69.1 percent beat analysts' expectations, above both the 63 percent beat rate since 1994 and the 66 percent rate for the past four quarters.


Revenue has been lackluster, however, with growth seen at 2.2 percent for the quarter. Just 53.9 percent have beaten sales estimates, below the 61 percent rate since 2002, but above the 49 percent rate for the past four quarters.

On the acquisition front, Mosaic Co agreed to buy CF Industries Holdings Inc's phosphate mining and manufacturing business for $1.2 billion in cash. Shares of CF climbed 4.2 percent to $218.36 while Mosaic gained 1.6 percent to $46.67.

source: interaksyon.com

Wall Street rises on economy, but Syria concerns limit gains

NEW YORK - U.S. stocks closed modestly higher on Thursday as the economy showed signs of improvement, but uncertainty over possible military action against Syria continued to pressure markets.



Talks that could lead to a major deal in which U.S. phone company Verizon buys the part of Verizon Wireless it doesn't already own from Vodafone helped push stocks higher.



Wall Street was solidly higher most of the session but pared gains in the last hour on concerns over Syria. Many in the market expect a strike by the United States and its allies because of an alleged poison gas attack by government forces that killed Syrian civilians. U.S. officials said a response would be "discrete and limited.



"That there will be an attack is priced into markets, but there's no way the market appreciates the implications beyond that if the U.S. were to go to war," said Joe Tanious, global market strategist at J.P. Morgan Funds in New York.



"It will create a lot of side effects the market isn't aware of, with the impact on oil the main complication."



U.S. crude futures have spiked 2.2 percent this week on tensions oil supply from the Middle East will be interrupted.



Stocks rose after the government said in an upwardly revised estimate the economy expanded by a stronger-than-expected 2.5 percent in the second quarter. In a separate report, it said weekly jobless claims fell more than anticipated last week, a possible sign that hiring improved in August.



The Dow Jones industrial average was up 16.36 points, or 0.11 percent, at 14,840.87. The Standard & Poor's 500 Index was up 3.21 points, or 0.20 percent, at 1,638.17. The Nasdaq Composite Index was up 26.95 points, or 0.75 percent, at 3,620.30.



The S&P was unable to close above its 100-day moving average for a third straight day, an indication that near-term momentum may fade.



The robust data could bolster the case for the Federal Reserve to soon wind down a major economic stimulus program that has driven a rally of more than 15 percent in the S&P 500 this year.



The data "reiterates that the economy continues to grow, which is supportive to risk assets and bodes well for the prospect of future growth," said Tanious, who helps oversee $1.5 trillion in assets.



"That the market is reacting positively to this shows that investors have become more comfortable with the idea of tapering."



U.S.-listed shares of Vodafone Group jumped 8.1 percent to $31.80 as the biggest percentage gainer on the Nasdaq 100 index after the company said it was in talks with Verizon Communications to sell its 45 percent stake in their U.S. joint venture, Verizon Wireless.



If completed, the deal could be worth around $130 billion, according to a person familiar with the situation, who asked not to be identified. Verizon rose 2.7 percent to $47.82 as one of the top boosts to the Dow.



Homebuilding stocks were among the strongest of the day. Lennar Corp rose 3.2 percent to $32.62 while PulteGroup Inc was up 3.1 percent to $15.86.



After the market's close, software company Salesforce.com Inc raised its full-year revenue outlook, sending its shares 6.8 percent higher to $46.60.



Guess Inc jumped 13 percent to $30.82 in the wake of second-quarter results that beat Wall Street estimates, bucking a trend of falling sales for apparel retailers.



Campbell Soup Co fell 3.1 percent to $43.33 after reporting revenue that missed expectations.



About 63 percent of companies traded on the New York Stock Exchange closed higher while almost 70 percent of Nasdaq-listed shares ended higher. Volume was light, with about 4.74 billion shares changing hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average so far this year of about 6.31 billion shares.

source: interaksyon.com