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ASX 200 expected to rise

The Australian share market looks set to rise on Monday. According to the latest SPI futures, the ASX 200 is expected to open the day 13 points or 0.2% higher this morning.

This follows a strong end to the week on Wall Street, which saw the Dow Jones rise 0.7%, the S&P 500 climb 0.9%, and the Nasdaq push 1.2% higher. Comments out of the US Federal Reserve boosted US stocks.
 

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https://apnews.com/article/business...cial-markets-f264fa3b2e07a38f4c7b3fc4def566ad

S&P 500, Nasdaq notch more records even as the Dow slips

By DAMIAN J. TROISE

Gains for several Big Tech stocks helped push the S&P 500 and the Nasdaq composite to more record highs on Wall Street Monday, even as weakness elsewhere in the market sent the Dow Jones Industrial Average and small-company stocks lower.

The S&P 500 also set a record high last Friday after investors welcomed an update from the Federal Reserve. In a speech, Fed Chair Jerome Powell helped ease concerns that a key factor in the market’s solid gains this year, low interest rates, will remain that way as the economy continues recovering from the pandemic.

“When you look at it, the impression is things are good and Powell essentially said he’s not the one who’s going to take the punch bowl away,” said Brad McMillan, chief investment officer for Commonwealth Financial Network.

Markets have been choppy in recent weeks as investors tried to gauge how much and how quickly the Fed will ease its support.

The S&P 500 added 19.42, or 0.4%, to close at 4,528.79 The Dow fell 55.96 points, or 0.2%, to 35,399.84 and the Nasdaq composite rose 136.39 points, or 0.9%, to 15,265.89.

The Russell 2000 index of small company stocks lost 10.70 points, or 0.5%, to 2,266.80. Both the Nasdaq and S&P 500 closed at all-time highs.

Technology stocks, which benefit from low interest rates, did much of the heavy lifting for the broader market. Apple rose 3%, while Amazon and Facebook each rose more than 2%.

Health care companies also had solid gains and helped lift the benchmark S&P 500. Banks stocks, which would benefit from higher rates, were the biggest drag on the overall market. Wells Fargo lost 2.8%.

Bond yields edged lower. The yield on the 10-year Treasury fell to 1.28% from 1.31% late Friday.

Energy prices were mixed as the the full impact of Hurricane Ida is still being assessed. The storm will likely take a toll on the energy, chemical and shipping industries that have major hubs along the Gulf Coast, but the impact on the overall U.S. economy should be modest so long as damage estimates don’t rise sharply and refinery shutdowns are not prolonged, economists suggested.

Crude oil prices rose 0.6%, while natural gas prices slumped 1.5% as Colonial Pipeline shut down deliveries in the south until it can assess damage from the storm.

Deal news helped lift several stocks. Affirm soared 46.7% after the payments company announced a deal last week with Amazon to offer shoppers a buy-now-pay-later option that doesn’t involve credit cards. Hill-Rom Holdings jumped 9.7% following reports that Baxter International is interested in buying the medical technology company.

Investors have several key economic reports to look forward to this week, including consumer confidence on Tuesday and the closely watched monthly employment survey from the Labor Department on Friday. Both could help investors better gauge the economic recovery’s path as it faces some resistance from a surge in virus cases because of the more contagious delta variant.

ASX 200 expected to rise
The Australian share market is expected to push higher again on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 17 points or 0.2% higher this morning.

This follows a largely positive start to the week on Wall Street, which saw the Dow Jones fall 0.16%, but the S&P 500 climb 0.43% and the Nasdaq storm 0.9% higher.

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https://apnews.com/article/business...cial-markets-ad50336723f40869311f991494374ccc

S&P 500 ends August higher, its 7th straight monthly gain

By DAMIAN J. TROISE

A wobbly day on Wall Street ended Tuesday with major indexes slipping just below recent record highs, but the S&P 500 closed out August solidly in the green with its seventh straight monthly gain.

Investors are busy trying to figure out just how much of an impact rising COVID-19 cases will have on the still recovering economy. The market has been choppy amid a mix of economic data, some of which has signaled that consumers are becoming more cautious.

“The market is still really dealing and grappling with the question of what direction are we taking,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management.

Investors are gauging which areas of the market are poised to benefit in the coming months as supply constraints continue to hamper some industries while COVID-19 continues to threaten the economic recovery, he said. The uncertainty has contributed to shifting gains and losses for services-oriented sectors and other areas of the economy that typically do well in a growing economy.

The S&P 500 index fell 6.11 points or 0.1%, to 4,522.68, after setting a record high a day prior. The Dow Jones Industrial Average fell 39.11 points, or, 0.1%, to 35,360.73 and the Nasdaq slipped 6.65 points, or less than 0.1%, to 15,259.24.

Technology stocks were the biggest weight dragging down the benchmark S&P 500, despite more stocks rising than falling within the index. Smaller company stocks fared better than the broader market in a signal that investors were somewhat confident about continued economic growth. The Russell 2000 rose 7.78 points, or 0.3%, to 2,273.77.

Despite the choppiness, the S&P 500 powered through August for a 2.9% gain. That marks seven straight monthly gains, the longest such streak since early 2018. The Nasdaq closed the month with a 4% gain.

The market has been lifted by a number of factors this month. Corporate earnings came in much better than expected, giving investors confidence to pay premium prices for an already lofty market. Also the Federal Reserve has made it clear that it believes inflation will be temporary and any pullback of financial support from the central bank would be gradual.

Energy prices mostly declined for a second day, as fears of widespread devastation to U.S. oil and gas production in the Gulf of Mexico after Hurricane Ida appeared be overblown. Oil companies began gradually restarting refineries in Louisiana and Colonial Pipeline said it restored flows to several pipelines that run through the south. Oil prices fell 1%, while natural gas prices rose 1.7%.

The latest economic data showed once again the impact the delta variant of the coronavirus is having on the economy. Consumer confidence in August fell sharply to a reading of 113.8 compared to a reading of 125.1 in July. Economists has been expecting a reading of 124.0. Most of the decline was tied to the spread of the virus in the past month, which has inundated hospitals with patients and deaths are climbing again.

The weak report weighed down some companies, such as clothing and apparel makers, that rely on discretionary spending from consumers. Under Armour fell 4.1%. Tapestry, which owns Coach and Kate Spade, fell 2.3%

Investors’ eyes will be turning to key economic data later this week, when the Labor Department releases its August jobs report on Friday. Economists are expecting that U.S. employers created 750,000 jobs last month, according to FactSet, with the unemployment rate dropping to 5.2%.

The bond market was quiet, with the 10-year Treasury note trading at a yield of 1.30%. That’s up from 1.28% the day before.

ASX 200 expected to fall

The Australian share market is expected to end its winning streak on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 37 points or 0.5% lower this morning.

This follows a subdued night of trade on Wall Street, which saw the Dow Jones fall 0.11%, the S&P 500 drop 0.13%, and the Nasdaq edge 0.04% lower.

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https://apnews.com/article/business...cial-markets-db47ee1871ab7f38a9c3aab9a8e7fff4

Stocks end with tiny gains, enough to nudge Nasdaq to record

By DAMIAN J. TROISE

Stocks inched mostly higher on Wednesday, enough to nudge the Nasdaq composite index to an all-time high. Markets continue to remain quiet ahead of Friday’s jobs report and the Labor Day holiday in the U.S. on Monday.

The S&P 500 index rose 1.41 points, less than 0.1%, to close at 4,524.09. The Dow Jones Industrial Average fell 48.20 points, or 0.1%, to 35,312.53 and the Nasdaq climbed 50.15 points, or 0.3%, to 15,309.38.

Small-company stocks did better than the rest of the market. The Russell 2000 index rose 0.6%.

Technology and communications stocks made solid gains that helped lift an otherwise choppy market. Consumer staples also rose more than other sectors.

Investors had a weak survey to work through from payroll processor ADP, which showed U.S. companies added jobs at a much slower pace in August than economists had anticipated. The weak report follows a disappointing consumer confidence survey Tuesday and comes ahead of the Labor Department’s release of its August jobs report on Friday.

“Friday’s (jobs) numbers are going to be very carefully looked at on all levels,” said Tom Martin, senior portfolio manager with Globalt Investments.

Economists expect that U.S. employers created 750,000 jobs in August, according to FactSet, pushing the unemployment rate down to 5.2%.

The report should provide more clues about the strength of the job market and might give investors a clearer sense of whether the Federal Reserve will decide at its upcoming September meeting on a timeline for paring back the $120 billion in bond purchases it’s making each month. Fed Chair Jerome Powell has signaled that the central bank will continue to keep interest rates low for the foreseeable future, even when it tapers the bond buying.

Trading is likely to pick up next week, once Wall Street is through the Labor Day holiday. September is historically a more volatile month for the stock market.

Meanwhile, The Institute for Supply Management, a trade group of purchasing managers, reported that growth in U.S. manufacturing accelerated in August despite the fact that companies were still struggling with supply chain problems. The supply chain issues, along with improvements in employment, are key factors in how investors are gauging the direction and potential impact of inflation, Martin said.

The broader market has been pushing higher all year, with the S&P 500 closing out August with its seventh straight monthly gain, marking its longest such winning streak since early 2018. Much of the momentum has been sustained by low interest rates favoring stock investments and a steady economic recovery, but investors are growing more cautious.

COVID-19′s more contagious delta variant has raised concerns that consumers could pull back on spending and a much needed recovery in the jobs market could stall.

The focus on broader economic data comes as the market quiets down following a solid corporate earnings season.

Copper prices slipped 2.2% and pushed some key copper mining companies lower.

PVH, which owns the Calvin Klein and Tommy Hilfiger brands, jumped 15.1% after raising its profit forecast for the year. Other stocks making big gains include video-compression chipmaker Ambarella, which gained 27.4% after reporting solid second-quarter financial results.

Bond yields were stable. The yield on the 10-year Treasury remained at 1.30% from late Tuesday.

Markets in Europe and Asia closed mostly higher.

ASX 200 expected to fall

The Australian share market looks set to fall again on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 15 points or 0.2% lower this morning.

This follows a mixed night of trade on Wall Street, which saw the Dow Jones fall 0.14%, the S&P 500 trade flat, and the Nasdaq rise 0.33%.

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https://apnews.com/article/business...cial-markets-a9f0525c501cf57678f1f4d217e88792

Stocks shake off an afternoon stumble to end modestly higher

By DAMIAN J. TROISE

The stock market recovered from an afternoon stumble Thursday and ended with some modest gains, enough to mark more record highs for the S&P 500 and the Nasdaq composite.

Investors had a fresh batch of economic data to weigh as they gauge the economic recovery, but much of the focus will be on a key employment report from the Labor Department on Friday.

Trading remains quiet as the summer holiday season comes to a close and Wall Street heads into a three-day holiday weekend. Activity is expected to pick up next week once traders are back from vacation. Typically September is one of the market’s more volatile months.

The S&P 500 rose 12.86 points, or 0.3%, to 4,536.95, topping a record set on Monday. The Dow Jones Industrial Average rose 131.29 points, or 0.4%, to 35,443.82. The Nasdaq rose 21.80, or 0.1%, to 15,331.18, also setting a record.

Small-company stocks fared better than the rest of the market in a sign that investors are feeling encouraged about the prospects for the economy. The Russell 2000 index rose 16.96 points, or 0.7%, to 2,304.02.

Health care companies made broad gains and energy stocks gained ground on a 2% jump in oil prices. Insurer Anthem rose 3.7% and Exxon Mobil rose 2.4%. Technology and communications stocks slipped.

The number of Americans seeking unemployment benefits fell last week to 340,000, a pandemic low and another sign that the job market is steadily rebounding from the economic collapse caused by the coronavirus pandemic.

It’s a preview of what traders are waiting for on Friday, when they will get the August jobs report from the Labor Department. Economists are expecting that U.S. employers created 750,000 jobs last month, pushing the unemployment rate down to 5.2%.

That jobs report will be closely watched by investors for its potential impact on the Federal Reserve’s path forward on its support for the economy. The central bank has signaled that it could begin tapering its monthly bond purchases, but will likely keep interest rates low until it’s comfortable with a recovery in the employment market. Low interest rates have been a key factor in the broader market’s solid gains through the year.

“The market is likely to stay on track because of the Fed, but the risk is on the inflation side,” said Jay Hatfield, CEO of Infrastructure Capital Advisors.

Inflation remains a concern as supply chain issues prompt some companies to raise prices on goods. Those issues have been particularly painful for industries that rely on computer chips, where a shortage is getting worse and forcing big automakers to cut back on production, including General Motors and Ford. The problem is being worsened by the more contagious delta variant of COVID-19, which has hit employees at factories in southeast Asia hard.

The housing market, where rental and home prices have been rising, is also a key measure to monitor, Hatfield said, as it could push inflation higher into 2022 and put a dent in the broader market when the Fed eventually does ease back its support for low interest rates.

Bond yields were steady. The 10-year Treasury note fell to 1.29% from 1.30% from the day before.

Several companies made sharp gains on a mix of earning and deal news. Baxter International rose 4.8% after the medical products company said it is buying Hill-Rom for $10.5 billion in cash. Signet Jewelers rose 5.7% after reporting solid second-quarter financial results.

Virgin Galactic Holdings fell 3% after the Federal Aviation Administration grounded spaceflights after learning that the ship carrying founder Richard Branson and five Virgin Galactic employees veered off course during its descent back to earth in July.

ASX 200 expected to rise

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 17 points or 0.2% higher.

This follows a decent night of trade on Wall Street, which saw the Dow Jones rise 0.37%, the S&P 500 climb 0.28%, and the Nasdaq edge 0.14% higher.

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https://apnews.com/article/business...rus-pandemic-d179858a9eaa6daf0e6f047012e77d87

Stocks end mostly lower even as tech drives Nasdaq higher

By ALEX VEIGA

Major stock indexes on Wall Street closed mostly lower Friday, though a rally in Big Tech companies nudged the Nasdaq to another all-time high.

The S&P 500 fell less than 0.1% a day after notching a record high. The benchmark index still managed its second straight weekly gain. Losses in financial, industrial and utilities companies outweighed gains in technology stocks and other sectors of the S&P 500. Energy prices mostly fell. Gold and silver rose. Treasury yields were mixed.

Stock indexes’ uneven finish followed a government report showing that U.S. employers created far fewer jobs than expected last month. The report led investors to question whether the delta variant is starting to impact economic growth.

“Investors are saying, ‘looks like this transition from reopening to a reopened economy is going to take a little bit longer,’” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management.

The S&P 500 slipped 1.52 points to 4,535.43. The Dow Jones Industrial Average fell 74.73 points, or 0.2%, to 35,369.09. The Nasdaq composite rose 32.34 points, or 0.2%, to 15,363.52, its third straight gain. The technology-heavy index also posted a weekly gain.

The indexes’ moves were mostly muted ahead of a long holiday weekend. U.S. stock markets will be closed Monday for Labor Day.

Investors focused Friday on a key barometer of economic health: the Labor Department’s monthly snapshot of hiring by nonfarm companies. The report found that America’s employers added just 235,000 jobs in August, a surprisingly weak gain after two months of robust hiring, at a time when the coronavirus’ highly contagious delta variant’s spread has discouraged some people from flying, shopping and eating out.

The August job gains fell far short of the big gains in June and July of roughly 1 million a month. Those gains followed widespread vaccinations that allowed the easing of many pandemic restrictions.

Technology stocks did particularly well last year during the pandemic, so it was unsurprising to see traders move back into those investments again. Broadcom and NetApp each rose 1% or more.

Travel companies took some of the heaviest losses. Carnival Corp. slid 4.4% for the biggest decline in the S&P 500. Rival Royal Caribbean fell 4.2%. Las Vegas Sands, Marriott International and Wynn Resorts also fell.

Friday’s weak jobs report could actually benefit stock investors over the longer run. The Federal Reserve has indicated it might begin winding down its bond purchases of $120 billion a month that pump money into the financial system until they have more data that the U.S. recovery is on solid footing. The report may help prompt Fed policymakers to delay those plans.

Bond yields moved higher. The yield on the 10-year Treasury note rose to 1.32% from 1.30% the day before.

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ASX 200 expected to rise

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 17 points or 0.2% higher.

This follows a decent night of trade on Wall Street, which saw the Dow Jones rise 0.4%, the S&P 500 climb 0.3%, and the Nasdaq edge 0.15% higher.
 

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NYSE CLOSED FOR LABOR DAY HOLIDAY ON MONDAY SEPT 6


https://apnews.com/article/business...cial-markets-e9aeec0c7757247df78bf60b04d734b6

Global stock markets rise after weak US hiring data

By JOE McDONALD

Global stock markets and Wall Street futures rose Monday after weak U.S. hiring in August fueled expectations the Federal Reserve might postpone withdrawal of economic stimulus that has boosted stock prices.

London and Frankfurt opened higher. Shanghai, Tokyo and Hong Kong rose.

Investors appeared to welcome Friday’s Labor Department report that U.S. employers added only 235,000 jobs in August, barely one-third of the consensus forecast of 730,000.

Investors hoped that might prompt the Fed to postpone a reduction in bond purchases that pump money into the financial system. Officials have indicated the Fed board might decide about that this month but wants to be sure a recovery is established, and say employment is a key factor.

“The weaker-than-expected jobs gains drastically reduce the chance of Fed tapering” at the September board meeting, Yeap Jun Rong of IG said in a report.

In early trading, the FTSE 100 in London rose 0.5% to 7,172.03 and Frankfurt’s DAX advanced 0.6% to 15,869.96. The CAC 40 in Paris added 0.5% to 6,725.01.

On Wall Street, futures for the S&P and the Dow Jones Industrial Average were up 0.2%.

The S&P 500 index fell 0.1% on Friday, but still was near a record high.

Also Friday, the Dow fell 0.2% while the Nasdaq composite rose 0.2% to a record.

In Asia, the Shanghai Composite Index rose 1.1% to 3,621.86 and the Nikkei 225 in Tokyo gained 1.8% to 29,659.89. The Hang Seng in Hong Kong added 1% to 26,163.63.

The Kospi in South Korea advanced less than 0.1% to 3,203.33 and Sydney’s S&P-ASX 200 ended up less than 0.1% at 7,528.50.

India’s Sensex rose 0.3% to 58,312.88. New Zealand, Singapore and Jakarta gained while Bangkok retreated.

The weak U.S. hiring also prompted concern the spread of the coronavirus’s more contagious delta variant is hurting economic growth. It was well below the monthly average of more than 900,000 jobs added in June and July.

In energy markets, benchmark U.S. crude fell 47 cents to $68.82 per barrel in electronic trading on the New York Mercantile Exchange. The contract sank 70 cents on Friday to $69.29. Brent crude, the basis for international oil prices, lost 49 cents to $72.12 per barrel in London. It declined 42 cents the previous session to $72.61.

The dollar advanced to 109.89 yen from Friday’s 109.64 yen. The euro declined to $1.1869 from $1.1891.



ASX 200 expected to rise

The Australian share market is expected to push higher on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 16 points or 0.2% higher this morning.


NYSE CLOSED FOR LABOR DAY HOLIDAY ON MONDAY SEPT 6
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https://apnews.com/article/business...global-trade-9e0aa2bdfc6a8b0fa95ce8220f48c302

US stocks close mostly lower, but Nasdaq still inches higher

By DAMIAN J. TROISE and ALEX VEIGA

Stocks indexes on Wall Street closed mostly lower Tuesday, though solid gains by Apple, Facebook and other tech heavyweights helped nudged the Nasdaq to another all-time high.

The S&P 500 slipped 0.3%, losing some ground after two straight weekly gains. Roughly 80% of companies in the benchmark index fell. Industrial and health care stocks were among the S&P 500′s biggest decliners. Household goods makers also weighed on the index, offsetting gains in communication services firms, technology stocks and a mix of companies that rely on consumer spending.

Small company stocks also fell broadly. Treasury yields rose, while energy futures and the price of gold fell.

The pullback in stocks came as traders returned from the Labor Day holiday weekend to a relatively light week of economic data. The last big economic snapshot, the August jobs report, came in weaker than expected last Friday, but stocks only slipped modestly on the news.

“We’re still kind of digesting Friday’s weak job number and the potential impact that might have with the economy,” said Ryan Detrick, chief market strategist for LPL Financial.

The S&P 500 fell 15.40 points to 4,520.03. The index remains within 0.4% of the all-time high it set last Thursday. The Dow Jones Industrial Average dropped 269.09 points, or 0.8%, to 35,100, while the technology-heavy Nasdaq composite rose 10.81 points, or 0.1%, to 15,374.33 it’s fourth consecutive record high.

Small company stocks declined. The Russell 2000 index lost 16.44 points, or 0.7%, to 2,275.61.

A rise in bond yields helped out bank stocks. The yield on the 10-year Treasury note rose to 1.37% from 1.32% on Friday. Bank of America rose 0.7%.

Paint and coatings maker PPG Industries fell 3.4% after warning investors that supply chain problems and higher costs will hurt third-quarter sales. The announcement weighed on some of the company’s peers. Sherwin-Williams fell 1.5%.

Industrial sector stocks were among the S&P 500′s biggest decliners. Deere & Co. slid 4.5% and 3M lost 8.8%.

Traders are back from their summer holidays, and volatility is expected to pick up in the coming days and weeks. Stocks churned higher throughout the summer, helped by stronger-than-expected earnings from big companies as well as guidance from the Federal Reserve that the central bank plans to keep interest rates low.

The market had only a mild negative reaction to the August jobs report, which showed employers hired fewer workers than expected. The report came out Friday, just ahead of the Monday expiration of extended unemployment benefits, which had been in place since March 2020, when the pandemic started.

“The economy has been showing signs of weakening and we’re seeing a clear impact from the delta variant seeping into economic data,” Detrick said.

That same weakness could also have an upside for investors who are hoping the Federal Reserve maintains its support for low interest rates while the jobs market and broader economy continue recovering.

“You have to wonder whether we are in a bad news is good news scenario regarding the Fed,” Detrick said.

Investors have a few economic reports on tap for the week.

On Wednesday, the Labor Department will report job openings for July. The jobs market is still struggling to recover from the pandemic and employers have been finding it difficult to fill openings amid lingering health fears and the resurgent virus could make it even more difficult.

On Friday, investors will get another update on inflation when the Labor Department reports on inflation at the wholesale level before costs are passed on to consumers.

ASX 200 expected to fall
The Australian share market is expected to fall on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 20 points or 0.3% lower this morning.

This follows a disappointing night of trade on Wall Street, which saw the Dow Jones fall 0.76%, the S&P 500 drop 0.34%, and the Nasdaq edge 0.07% higher


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https://www.usnews.com/news/busines...s-mostly-lower-after-mixed-day-on-wall-street

Stocks Slip as Fed Report Signals 'Downshift' in Economy
Stocks are closing lower on Wall Street Wednesday following a Federal Reserve report that shows U.S. economic activity slowed this summer amid rising worries over resurgent coronavirus cases and mounting supply chain problems and labor shortages.

By Associated Press Sept. 8, 2021

By DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers

Stocks on Wall Street eased further from their recent highs Wednesday amid more signs that U.S. economic growth is being dampened by a resurgence in coronavirus cases and other challenges.

The S&P 500 slipped 0.1%, its third straight drop. The benchmark S&P 500 was roughly split between gainers and losers, but weakness in technology, communication and financial stocks weighed down the market. Less risky investments, including consumer staples and utilities, made broad gains.

Small-company stocks fell more than the broader market. Bond yields were mixed. Oil prices rose.

Stock indexes were already in the red before 2 p.m. Eastern, when the Federal Reserve issued its latest survey of the nation’s business conditions. Dubbed the “Beige Book,” the report found that U.S. economic activity “downshifted” in July and August amid rising worries over surging COVID-19 cases, mounting supply chain problems and labor shortages.

The Fed said the slowdown was largely attributable to a pullback in dining out, travel and tourism in most parts of the country, reflecting concerns about the spread of the highly contagious delta variant.

While muted overall, the market's reaction confirmed that investors are becoming a little bit concerned that economic activity is slowing, said Sam Stovall, chief investment strategist at CFRA.

“You could also say investors were heartened by the fact that the Fed did not say anything worse,” Stovall said.

The S&P 500 fell 5.96 points to 4,514.07, which is 0.5% below the all-time high the index set last Thursday. The Dow Jones Industrial Average fell 68.93 points, or 0.2%, to 35,031.07, and the Nasdaq composite slid 87.69 points, or 0.6%, to 2,249.73. The tech-heavy index's decline ended a four-day winning streak.

The Russell 2000 index of smaller companies lost 25.88 points, or 1.1%, to 2,249.73.

The market has been trading within a narrow range of gains and losses for the past couple of weeks, as investors look for any sort of understanding of where the U.S. economy is headed with the widespread delta variant of the coronavirus. Investors could be in for a choppy market through September as they monitor the Federal Reserve and Washington, which has to deal with budget reconciliation, infrastructure spending and the debt ceiling.

“If you look at the calendar, it's aggressive,” said Katie Nixon, chief investment officer at Northern Trust Wealth Management.

Investors received another conflicting report from the government on Wednesday. U.S. employers posted record job openings for the second consecutive month in July, according to the Labor Department. The disconnect between the growing number of job openings and the weak recovery for employment levels is another signal that the overall jobs recovery could be crimping the broader economic recovery.

“People have remained reluctant to engage in the labor market,” Nixon said. “This is not a demand problem, it's a supply issue."

If that's the case, she said, there's not much the Federal Reserve can do about it and tapering its bond-buying program makes sense. Still, there's probably a long way to go before the central bank focuses on raising interest rates.

The latest Beige Book will be used by Fed policymakers at their next meeting on Sept. 21-22 to help them decide how to move interest rates and whether to end the central bank’s $120 billion monthly bond purchases, which it has been making since the pandemic started to help lower long-term interest rates.

Technology stocks accounted for a big share of the selling Wednesday. Apple fell 1% and chipmaker Advanced Micro Devices lost 2.7%. Among the gainers were consumer staples and utilities companies, including General Mills, which rose 4.6%, and Consolidated Edison, which gained 2.7%.

Shares of cryptocurrency trading platform Coinbase fell 3.2% after the company disclosed it was being investigated by the Securities and Exchange Commission over its plans to offer its cryptocurrency holders a chance to earn interest on their assets if they lent them out. The company said the regulator has threatened to take civil enforcement action, and the launch of the lending program has been delayed until at least October.

The yield on the 10-year Treasury note fell to 1.34% after rising sharply on Tuesday to 1.37%.

Energy prices moved broadly higher. Oil prices rose 1.4% and natural gas prices jumped 7.6%.

ASX 200 expected to fall again

The Australian share market looks set to fall again on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 27 points or 0.35% lower this morning.

This follows a poor night of trade on Wall Street, which saw the Dow Jones fall 0.20%, the S&P 500 drop 0.13%, and the Nasdaq tumble 0.57%.

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https://www.usnews.com/news/busines...ares-slip-as-fed-signals-downshift-in-economy

Stocks End Lower on Wall Street, Extending Weekly Losses

Stocks gave up an early gain and ended lower on Wall Street Thursday, keeping the S&P 500 and the Nasdaq on track for their first weekly losses in three weeks.

By DAMIAN J. TROISE and ALEX VEIGA, AP Business Writers

Stocks gave up an early gain and ended lower on Wall Street Thursday, keeping the S&P 500 and the Nasdaq on track for their first weekly losses in three weeks. Technology and health care companies posted the biggest losses, offsetting gains in energy companies and banks. The S&P 500 fell 0.5% and the Nasdaq pulled back 0.3%. Boston Beer slumped nearly 4% after pulling its already lowered profit forecast, while Lululemon jumped 10.5% after reporting results that easily beat forecasts. The yield on the 10-year Treasury note fell to 1.30% and the price of U.S. crude oil lost 1.7%.

Stocks edged lower Thursday afternoon on Wall Street in choppy trading while investors continue assessing the pace of economic growth.

The holiday-shortened week has given investors several reports, some conflicting, to review for clues on the direction of the economy's recovery. The broader market has been choppy amid concerns that the recovery has slowed.

The S&P 500 fell 0.4% as of 2:35 p.m. Eastern. The Dow Jones Industrial Average fell 140 points, or 0.4%, to 34,890 and the Nasdaq composite fell 0.1%. The S&P 500 and the Nasdaq are on track to end the week lower after two weeks of gains.

Health care and technology stocks were the heaviest weights dragging down the broader market. Eli Lilly fell 5.5% and Microsoft fell 0.9%. Banks and other financial companies made gains.

GameStop fell 1.3% after the video game retailer reported a worse-than-expected loss for the quarter. The company has been at the center of a battle between a group of online investors and Wall Street hedge funds since late last year, causing the stock to be extremely volatile.

Lululemon rose 11.1% after the athletic apparel seller's quarterly results came in well above analysts' expectations.

Investors continue to monitor the progress of the economy and what the Federal Reserve plans to do as the economy continues to recover. The Federal Reserve's latest survey of the nation’s business conditions, dubbed the “Beige Book,” said Wednesday that U.S. economic activity “downshifted” in July and August.

The Fed said the slowdown was largely attributable to a pullback in dining out, travel and tourism in most parts of the country, reflecting concerns about the spread of the highly contagious delta variant.

“The economy seems to be slowing down a little bit and it's hard to know how much is temporary because of the delta variant and how much is the new normal,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.

Fed officials have indicated they expect to dial back on stimulus measures by year’s end, and Treasury Secretary Janet Yellen has warned Congress that she will run out of maneuvering room to prevent the U.S. from breaching the government’s borrowing limit in October unless the debt ceiling is raised.

The Labor Department said Thursday that the number of Americans seeking unemployment benefits fell last week to 310,000. At their current pace, weekly applications for benefits are edging toward their pre-pandemic figure of roughly 225,000.

The upbeat report follows others that show the jobs market is still struggling to recover. The Labor Department's jobs survey for August was far weaker than economists expected, but the agency has also reported that employers are posting record job openings.

“The big question is whether the job market will get a lot stronger toward the end of this year into next year,” Zaccarelli said.

The yield on the 10-year Treasury note fell to 1.29% from 1.33% late Wednesday.

ASX 200 expected to rebound

The Australian share market looks set to end the week on a better note. According to the latest SPI futures, the ASX 200 is expected to open the day 35 points or 0.5% higher this morning.

This follows a better than feared night of trade on Wall Street, which saw the Dow Jones fall 0.43%, the S&P 500 drop 0.46%, and the Nasdaq down 0.25%.

September New York (CNN Business) If you're an investor who knows your market history, you might be tempted to tune out for a bit and start singing Green Day's "Wake Me Up When September Ends." The ninth month is traditionally the worst of the year for stocks.

Australia September is historically the weakest month of the year, with the S&P 500 posting average declines of 1% during the month going back to 1928, according to Yardeni Research. ... The trifecta of Covid, inflation and Fed policy—which have been the dominant themes in the market for months—are likely to continue, Stucky says

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Tech slide pulls S&P 500 down for its 5th straight loss

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street capped a choppy day of trading Friday with another pullback for stocks and the S&P 500′s first weekly loss in three weeks.

The benchmark index fell 0.8%, its fifth straight decline, and ended 1.7% lower for the holiday-shortened week. That’s it’s biggest weekly drop since June. The other major U.S. stock indexes also posted weekly losses.

The selling was widespread, though technology, health care and communications stocks weighed most heavily on the S&P 500. Smaller company stocks also fell broadly. Treasury yields mostly rose. The price of U.S. crude oil rose 2.3%.

Stocks have traded in a narrow range for several weeks as most investors are sitting on the sidelines waiting to get a fuller understanding of where the economy is headed and how the pandemic is impacting corporations.

“There isn’t any new good news coming, and that’s important because we’ve gotten a decent amount of good news that has flowed up until this point this year,” said Liz Young, head of investment strategy at personal finance company SoFi.

The S&P 500 fell 34.70 points to 4,458.58. The index is now within 1.8% of the all-time high it set last week. The Dow Jones Industrial Average lost 271.66 points, or 0.8%, to 34,607.72. The tech-heavy Nasdaq composite shed an early gain, dropping 132.76 points, or 0.9%, to 15,115.49.

The Russell 2000 index of smaller companies gave up 21.58 points, or 1%, to 2,227.55.

Investors mulled a negative piece of inflation data Friday. Inflation at the wholesale level climbed 8.3% last month from August 2020, the biggest annual gain since the Labor Department started calculating the 12-month number in 2010.

Federal Reserve policymakers have said they believe inflation this year would be temporary and is a result of the economy recovering from the pandemic. However, persistently high inflation could force the Fed’s hand to start pulling back on its bond-buying program and low interest rate policy sooner than anticipated.

The bond market had a mild reaction to the inflation data, a possible sign that investors continue to agree with the Fed’s outlook. The yield on the 10-year Treasury note rose to 1.33% from 1.30%.

The pandemic remains in the forefront of investors’ minds, as hospitals fill up in the South and other parts of the country. President Joe Biden announced Thursday that companies with more than 100 employees would be required to have their employees vaccinated or do weekly testing, an announcement big companies have been willing to embrace.

“A lot of the pain was felt in August and that’s part of why September is going to be so choppy,” Young said. “I’m hopeful that some of the worst of that is behind us and we can move forward.”

The market is still trying to find reasons to go higher, she said, and the economy is also likely to keep grinding on because of the desire from consumers and companies to get back to a more normal way of operating.

Industries that have been hit hardest through the pandemic and are relying on a steady recovery have been struggling as COVID-19 cases rise with the highly contagious delta variant. Travel-related companies were among the decliners Friday. American Airlines slid 6.2% and Delta Air Lines lost 4.2%, while cruise line operator Carnival fell 2.3% and Norwegian Cruise Line dropped 1.4%.

Apple fell 3.3% after a federal judge ordered the iPhone maker to dismantle part of the competitive barricade guarding its closely run app store, which is one of its biggest moneymakers.

Restaurant and arcade operator Dave & Buster’s rose 1.2% after reporting solid financial results. Endo International surged 32.9% after settling opioid cases with the state of New York and two large counties in a $50 million deal.


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ASX 200 expected to fall

The Australian share market looks set to fall on Monday. According to the latest SPI futures, the ASX 200 is expected to open the day 28 points or 0.4% lower this morning.

This follows a very disappointing end to the week on Wall Street, which saw the Dow Jones fall 0.8%, the S&P 500 drop 0.77%, and the Nasdaq tumble 0.87%. Economic uncertainty led to the Dow recording five consecutive daily declines last week.
 

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US stocks edge higher, regrouping after a down week

By DAMIAN J. TROISE and ALEX VEIGA

A late-afternoon burst of buying helped stock indexes close mostly higher on Wall Street Monday, snapping a five-day losing streak for the S&P 500.

The benchmark index shook off an afternoon slump to finish 0.2% higher. Banks, energy companies and communication stocks accounted for much of the index’s broad gains. Health care and utilities stocks fell. The S&P 500 was coming off its biggest weekly drop since June.

The price of U.S. crude oil rose 1% and crossed back above $70. It hasn’t closed above that level since early August. Natural gas prices jumped 5.9% and are at their highest levels since the middle of 2014. The solid gains helped lift energy stocks, including a 2.6% rise for Exxon Mobil and a 7.2% jump for Marathon Oil.

Stocks have traded in a narrow range for several weeks as most investors are sitting on the sidelines waiting to get a fuller understanding of where the economy is headed and how the pandemic is impacting corporations.

“Interestingly it’s all still within this narrow band that we’ve been seeing in the markets” said Greg Bassuk, CEO of Axs Investments. “Investors are still looking to hang their hats on more outsized or more significant news relating to the economic recovery.”

The S&P 500 rose 10.15 points to 4,468.73. Despite it’s pullback last week and modest gain Monday, the index remains just 1.5% below the all-time high it set on Sept. 2.

The Dow Jones Industrial Average rose 261.91 points, or 0.8%, to 34,869.63, while the Nasdaq slipped 9.91 points, or 0.1%, to 15,105.58.

Bond yields edged lower. The yield on the 10-year Treasury fell to 1.32% from 1.34% late Friday.

Several key pieces of news helped lift some companies and sectors.

Spirit Aerosystems, which is a key parts supplier to Boeing, rose 4.7% following the announcement of more government support for the industry. The Biden administration is making $482 million available to aviation industry manufacturers to help them avert job or pay cuts in the pandemic. Parker-Hannifin rose 1.9%.

Kansas City Southern rose 0.5% and Canadian Pacific was flat after Kansas City said a $31 billion bid from Canadian Pacific is superior to a rival one from Canadian National.

TransUnion fell 2% after announcing a deal to buy data services company Neustar.Investors have been dealing with choppy trading for weeks as they try to assess how the economic recovery moves forward with rising COVID-19 cases hurting consumer spending and employment growth, while raising prices on goods. Wall Street is also closely watching how the Federal Reserve reacts to the changing pace of economic growth with its plans to eventually taper support for low interest rates.

“The major market triggers going back to COVID-19, the Fed, and geopolitics are going to continue in the immediate term to show mixed signals and that will create more investor uncertainty,” Bassuk said.

Wall Street will have several key pieces of data to review this week. The Labor Department will release its consumer price index for August on Tuesday, which will give investors another update on inflation as businesses and consumers face higher prices because of supply constraints.

The Commerce Department will release retail sales data for August on Thursday to a market still trying to determine the full impact of rising COVID-19 cases on consumer spending.

ASX 200 expected to fall

The Australian share market is expected to edge lower on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 20 points or 0.3% lower this morning.

This is despite US markets starting the week on a positive note. On Wall Street the Dow Jones rose 0.76% and the S&P 500 climbed 0.23%, but the Nasdaq dropped 0.07%.


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US stocks can’t hold on to an early gain and resume falling

By DAMIAN J. TROISE and ALEX VEIGA

Banks and energy companies led a broad slide for stocks on Wall Street Tuesday, handing the S&P 500 its sixth loss in the last seven trading days.

The S&P 500 fell 0.6% after an early gain faded by midafternoon. The benchmark index’s 11 sectors all ended in the red, with banks, energy stocks and industrial and communication companies among the biggest drags on the index. The selling more than offset the S&P 500′s modest gain from a day before.

The market had started higher after the latest data on inflation came in better than economists had expected, but reversed course within the first hour of trading, suggesting the report didn’t ease investors’ inflation worries. On Friday, the government reported that U.S. wholesale prices jumped sharply in August.

“There are still inflationary pressures even if they (consumer prices) came in lower than expected,” said Kristina Hooper, chief global market strategist at Invesco. “It doesn’t mean that it’s over.”

The S&P 500 fell 25.68 points to 4,443.05. The Dow Jones Industrial Average dropped 292.06 points, or 0.8%, to 34,577.57. The Nasdaq composite fell 67.82 points, or 0.5%, to 15,037.76.

Small companies fared worse than the broader market. The Russell 2000 index slid 30.80 points, or 1.4%, to 2,209.98.

U.S. consumer prices rose a lower-than-expected 0.3% last month, the smallest increase in seven months and a hopeful sign that inflation pressures may be cooling. Still, the report followed an 8.3% annual increase in wholesale prices last month from August 2020, the biggest annual gain since the Labor Department started calculating the 12-month number in 2010.

That report on prices at the wholesale level was worse than expected, signaling problems for companies contending with higher costs, Hooper said. Those costs could be passed along to consumers, but companies unable to do that could see their upcoming earnings get dented.

Inflation has been a key concern for investors, who are trying to gauge how it will impact both the economy’s recovery and the Federal Reserve’s policy on maintaining low interest rates. The central bank has said higher costs for raw materials and consumer goods will likely remain temporary as the economy recovers, but analysts are concerned that the higher prices could stick around and dent companies’ bottom lines while also crimping spending.

Bond yields eased following the Labor Department’s report. The yield on the 10-year Treasury fell to 1.29% from 1.32% late Monday. It had been rising overnight to about 1.34% shortly before the report was released.

The lower bond yields weighed down banks, which rely on higher yields to charge more lucrative interest on loans. Bank of America fell 2.7% and JPMorgan dropped 1.7%.

The broader concerns about inflation and rising prices have added to choppy trading, along with lingering worries about how the more contagious delta variant of COVID-19 will impact an economy that’s still finding its footing.

“This environment is likely to continue,” Hooper said. “It may seem uncomfortable because we had such a strong market for so long.”

Still, she expects stocks to continue making gains after Wall Street gets past much of the uncertainty over the Fed and the economic recovery, “but it could be a very bumpy road between now and then.”

Investors will get more information on the economy later this week. The Commerce Department will release retail sales for August on Thursday, giving another glimpse into consumer spending. The University of Michigan will release its consumer sentiment survey on Friday.

Elsewhere in the market, several companies made big moves on a mix of news.

Dietary supplement company Herbalife slumped 21.1% after cutting its profit and revenue forecasts. Wynn Resorts slid 10.9% for the biggest drop in the S&P 500 over concerns that its casinos in Macau could face stricter oversight as China tries to tighten regulations on a broad range of industries. Casino operator Las Vegas Sands also fell, closing 9.8% lower.

Cable provider Comcast fell 7.3% after the company warned about a slowdown in new cable customers.

ASX 200 expected to fall

The Australian share market is expected to drop on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 34 points or 0.45% lower this morning.

This follows a disappointing night of trade on Wall Street, which saw the Dow Jones fall 0.84%, the S&P 500 drop 0.57%, and the Nasdaq fall 0.45%.


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Stocks post broad gains, led by energy companies and tech

By DAMIAN J. TROISE and ALEX VEIGA

Energy and technology companies helped lift stocks on Wall Street broadly higher Wednesday, reversing the market’s pullback from a day earlier.

The S&P 500 rose 0.8% after another day of choppy trading. It was the biggest daily gain for the benchmark index since late August and it put the S&P 500 on pace to close the week higher.

About 80% of stocks in the index rose. Energy companies did particularly well as prices for crude oil and natural gas climbed, and Microsoft helped pull the tech sector higher after announcing a dividend increase and a new stock buyback program. Health care and financial stocks also made solid gains. Utilities, which investors tend to shun when they’re more willing to take on risk, were the only sector to fall.

The rally marked the latest reversal for the market this month, which has been characterized by choppy trading and small moves, usually ending with stocks finishing lower, but still near their recent all-time highs. Stocks fell Friday, rose Monday and then fell again on Tuesday.

“We’ve just retraced some of the weakness that we’ve seen the past few days,” said Willie Delwiche, investment strategist at All Star Charts. “In aggregate, the median stock hasn’t really gone anywhere in six months.”

The S&P 500 rose 37.65 points to 4,480.70. The index is within 1.3% of its all-time high set Sept. 2. The Dow Jones Industrial Average gained 236.82 points, or 0.7%, to 34,814.39. The Nasdaq composite added 123.77 points, or 0.8%, to 15,161.53. Small-company stocks did even better with the Russell 2000 index gaining 24.46 points, or 1.1%, to 2,234.45.

U.S. government bond yields rose. The yield on the 10-year Treasury rose to 1.30% from 1.27% late Tuesday. Banks benefitted from the higher yields, which allow them to charge more lucrative interest rates on loans. Citigroup rose 2.4% and Capital One Financial gained 2.9%.

Oil prices rose 3.1% and natural gas prices rose 3.8% as the oil and gas industry continues to sort through the damage caused by hurricane season in the Gulf. Disruptions have been more pronounced than originally expected, and there’s been some oil spills from some refineries.

ExxonMobil gained 3.4%, while Occidental Petroleum climbed 6.1% and Marathon Oil finished 7.7% higher.

Casino stocks slumped following reports of a possible crackdown on the industry by Chinese officials in Macau, the former Portuguese colony and gambling center. Wynn Resorts fell 6.3% for the biggest drop in the S&P 500, while MGM Resorts fell 2.5% and Las Vegas Sands slid 1.7%.

Investors have been navigating a choppy market as they try to determine how rising cases of COVID-19 because of the highly contagious delta variant will impact economic growth. The employment market has been slow to recover and consumer spending has been tempered in recent months.

Wall Street will get get more information on jobs and consumer spending on Thursday when the Labor Department releases its weekly report on unemployment benefits and the Commerce Department releases retail sales data for August.

ASX 200 expected to rebound

The Australian share market looks set to rebound on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 33 points or 0.45% higher this morning.

This follows a strong night of trade on Wall Street, which saw the Dow Jones rise 0.68%, the S&P 500 climb 0.85%, and the Nasdaq jump 0.82%.


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Stocks end lower after a brief afternoon recovery fades

By DAMIAN J. TROISE and ALEX VEIGA

Another day of choppy trading on Wall Street left stocks mostly lower, cutting into the major indexes’ gains for the week.

The S&P 500 and the Dow Jones Industrial Average each lost about 0.2%, while the tech-heavy Nasdaq managed to eke out a gain of 0.1%. More stocks fell than rose in the S&P 500, and most of the benchmark index’s sectors took slight losses.

The market had edged higher in the early going after a surprisingly good retail sales report for August, but then quickly turned lower and remained there for much of the day. By late afternoon, major indexes had clawed back the ground they lost earlier and turned slightly higher, only to shed some of those gains in the final minutes of trading.

Markets have been choppy as investors shift money between various sectors while they parse any data coming out that could give more clues and signals on the potential direction of the economy and how the Federal Reserve will react.

The central bank will meet next week, and investors will listen closely for any comments about when and how much it will taper support for low interest rates that have helped fuel gains for stocks throughout the year.

“What you’re seeing over the last month has been hesitation to really commit,” said J.J. Kinahan, chief strategist with TD Ameritrade. “Until we have more clarity from the Fed, the pattern will continue.”

The S&P 500 fell 6.95 points to 4,473.75. The index remains within 1.4% of the all-time high it set on Sept. 2. The Dow dropped 63.07 points to 34,751.32, while the Nasdaq added 20.39 points to 15,181.92.

Small company stocks also gave up some ground. The Russell 2000 index slipped 1.54 points, or 0.1%, to 2,232.91.

Investors were given another mixed bag of economic data to review as they try to gauge the economic recovery’s path ahead amid the virus pandemic, inflation and other factors.

The Commerce Department reported that retail sales rose 0.7% last month. Economists had expected a 0.85% contraction over concerns that people would have pulled back on spending as the highly contagious delta variant of COVID-19 prompts consumers to pull back on shopping.

Consumers simply shifted spending to more online purchases and away from businesses that are still struggling to recover from the pandemic, including restaurants and other business that rely on in-person spending.

Wall Street also weighed a disappointing report showing that weekly unemployment claims rose more than expected.

Industrial, health care and raw materials companies were the biggest drag on the S&P 500. Deere & Co. fell 1.2%, Eli Lilly dropped 1.2% and Freeport-McMoRan slid 6.6%, the biggest drop in among S&P 500 companies.

Losses for banks were tempered by rising bond yields that help them charge more lucrative interest on loans. The yield on the 10-year Treasury rose to 1.33% from 1.30% late Wednesday.

A mix of retailers gained ground following the retail sales report, which showed a surprise jump in August. Gap rose 1.6% and Bath & Body Works rose 2.1%.

ASX 200 expected to fall

The Australian share market looks set to end the week on a disappointing note. According to the latest SPI futures, the ASX 200 is expected to open the day 14 points or 0.2% lower this morning.

This follows a mixed night on Wall Street, which saw the Dow Jones fall 0.18%, the S&P 500 drop 0.16%, and the Nasdaq rise 0.13%.

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Stocks fall on Wall Street, giving up the week’s gains

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street capped an up-and-down week of trading Friday with a broad sell-off that wiped out the major indexes’ gains for the week.

The S&P 500 lost 0.9% and posted its second straight weekly loss. Roughly 80% of the stocks in the benchmark index fell. Technology and communication companies accounted for much of the pullback. Industrial and financial stocks also were big drags on the index. Only the index’s health care sector managed a gain.

Small-company stocks bucked the overall market slide. Bond yields rose broadly. Energy prices fell.

Trading has been choppy throughout the week as investors weighed a mixed bag of economic data reflecting how the economy is weathering a spike in COVID-19 cases and how it might continue its recovery in the coming months. Wall Street is also looking ahead to next Wednesday, when the Federal Reserve is due to deliver its latest economic and interest rate policy update.

“We’ve seen a gradual deterioration over the course of the week, with two little up periods, but for the most part, generally a weakening (stock) market,” said Alan McKnight, chief investment officer at Regions Asset Management.

The S&P 500 fell 40.76 points to 4,432.99. Despite being down about 0.6% for the week, the index is within 2.3% of the all-time high it set Sept. 2.

The Dow Jones Industrial Average fell 166.44 points, or 0.5%, to 34,584.88, while the tech-heavy Nasdaq composite slid 137.96 points, or 0.9%, to 15,043.97.

The Russell 2000 index of smaller companies recovered from an early slide and rose 3.96 points, or 0.2%, to 2,236.87.

Bond yields rose. The yield on the 10-year Treasury rose to 1.38% from 1.33% late Thursday.

Technology and communication stocks were the biggest weights on the market. Apple fell 1.8% and Facebook dropped 2.2%.

Oil prices fell 0.9% and natural gas prices fell 4.3%. The weak energy prices helped pull down energy stocks. Oilfield services company Schlumberger fell 1.9%.

Health care stocks eked out gains. Lab equipment maker Thermo Fisher Scientific was a standout with a 6.5% jump after giving investors an encouraging business update. Some travel-related stocks made solid gains. Cruise line operator Carnival rose 2%, while Norwegian Cruise Line gained 2.1%.

Also influencing the market’s gyrations was “quadruple witching,” the simultaneous expiration of four kinds of options and futures contracts. The phenomenon happens four times a year and forces traders to tie up loose ends in contracts they hold. More than 750 billion single stock options were due to mature Friday, said McKnight.

“Just the sheer size of that plays into this,” he said. “It creates more volume in the market and some of the volatility associated with that.”

Much of this week’s economic data pointed to an economy struggling to move forward in the last few months. Inflation remains a concern for businesses, which are dealing with supply chain problems and facing higher costs. Concerns about the highly contagious delta variant also have analysts worried that consumer spending, a key piece of economic growth, could stall.

Investors will have their eye on the Fed next week to see whether the central bank takes any action to address the impact of rising prices on businesses and consumers. The Fed has said higher costs for raw materials and consumer goods will likely remain temporary as the economy recovers, but analysts are concerned that the higher prices could stick around and dent companies’ bottom lines while also crimping spending.


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