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bigdog

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Stocks edge lower ahead of company earnings, inflation data

By DAMIAN J. TROISE and ALEX VEIGA

Stocks closed lower on Wall Street after a wobbly day of trading Tuesday as investors wait for more data on inflation and corporate earnings this week.

The major indexes wavered between small gains and losses for much of the day, before the selling gained momentum in the final minutes of trading. The S&P 500 slipped 0.2% after having been up 0.3% in the early going.

The Dow Jones Industrial Average fell 0.3% and the Nasdaq composite slipped 0.1%. Small company stocks, a gauge of confidence in economic growth, fared better than the broader market, driving the Russell 2000 index 0.6% higher.

Technology, communication and health care companies accounted for much of the losses in the S&P 500. Intel closed 2.4% lower, while AT&T slid 2.3% and Google’s parent company Alphabet dropped 1.8%. Johnson & Johnson fell 1.6%.

A mix of retailers and other companies that rely on direct consumer spending gained ground. Ford rose 3.6% and Lowe’s added 0.5%. Real estate and utilities stocks also rose.

The pullback in the S&P 500 marked the index’s third straight decline. After two days, the index’s losses have offset its 0.8% gain last week.

The selling suggests investors are worried that they will be disappointed by the upcoming third-quarter company earnings reporting season, said Sam Stovall, chief investment strategist at CFRA.

“Investors are looking at higher rates, higher inflation, higher oil prices, and thinking the worst,” Stovall said. “But when we see other factors, such as small-caps doing well or the market not really falling as much as it could, that sort of indicates to me that there is underlying strength and that investors are just waiting for a better re-entry point.”

The S&P 500 fell 10.54 points to 4,350.65. The Dow dropped 117.72 points to 34,378.34. The Nasdaq slipped 20.28 points to 14,465.92. The Russell 2000 rose 13.63 points to 2,234.27. European and Asian markets closed mostly lower.

U.S. crude oil prices closed above $80 a barrel. The yield on the 10-year Treasury fell to 1.57% from 1.60% late Friday. The bond market was closed on Monday for Columbus Day.

The broader market has been choppy for weeks. Investors are trying to figure out how the economy will continue its recovery with COVID-19 remaining a threat and rising inflation potentially crimping consumer spending and corporate finances. The latest round of earnings reports will give Wall Street a clearer picture of how companies fared in the most recent quarter amid a surge in COVID-19 cases. It will also shed some light on how they expect to perform through the rest of the year.

S&P 500 companies are expected to post 27.6% annual earnings growth for the July-September quarter, according to FactSet. That’s down from 28.1% growth estimated by analysts in July.

JPMorgan Chase will kick off earnings for banks on Wednesday. Bank of America, Wells Fargo and Citigroup will follow with their latest quarterly results on Thursday.

Investors will also be closely watching the latest updates on inflation from the Labor Department. It will release its Consumer Price Index for September on Wednesday, which is a gauge of how inflation is pressuring costs for consumers. Additional information on inflation pressures for businesses will be released on Thursday when the Labor Department releases its Producer Price Index.

A wide range of industries are feeling the pinch from rising inflation with higher costs for shipping and raw materials. Many companies have warned that their financial results could suffer because of the supply chain problems.

The supply chain crunch has also raised prices on many goods for consumers, which could hurt consumer spending and further stunt the economic recovery. Investors will get an update on consumer spending when the Commerce Department releases its retail sales report for September on Friday.

ASX 200 expected to rise

The Australian share market looks set to bounce back on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 20 points or 0.3% higher this morning.

This is despite all the major indices on Wall Street dropping into the red. On closing, the Dow Jones was down 0.34%, the S&P 500 is down 0.24%, and the Nasdaq is trading 0.14% lower.

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It is also interesting to note that the S&P 500 Index, on weekly basis, has now recorded 5 lower highs and 5 lower lows, not including this week. This week has not, as yet, broken last week's high.

To put this into perspective, the COVID crisis of March 2020 didn't even have 5 weeks of lower highs and lower lows.

Can we do six weeks? I don't know ... I am a reactor, and not a predictor. At this stage I am neutral SPX on the futures.

Attached chart is a weekly chart from early 2020, with the 200 period moving average.

KH
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Modest Gain Breaks a 3-Day Losing Streak for S&P 500 Index

Stocks ended another day of choppy trading modestly higher Wednesday, enough to break a three-day losing streak for the S&P 500.

By Associated Press

Oct. 13, 2021, at 4:51 p.m.

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

Major U.S. stock indexes closed mostly higher Thursday, snapping a three-day losing streak for the S&P 500 despite another choppy day of trading.

The benchmark index rose 0.3% after having been down 0.5% in the early going. It's still on pace for a 0.6% weekly loss. The Dow Jones Industrial Average ended flat, while the Nasdaq rose 0.7%.

Most of the S&P 500′s 11 sectors rose, with technology and communication accounting for a big share of the gains. A mix of companies that rely on consumer spending also helped lift the market. Financial and energy companies fell.

Investors had their eye on company earnings and inflation data. They also got more insight into the Federal Reserve's next policy moves after the central bank released the minutes from its policymakers' meeting

The minutes, which revealed Fed officials discussed how the central bank might begin to taper the unprecedented financial support it began giving the economy since the early days of the pandemic, may have helped give the market an afternoon boost after its downbeat start, said J.J. Kinahan, chief strategist with TD Ameritrade.

“You’re starting to get a framework of how they’re going to go about it, and the market is really just desperate for some clarity,” he said. "At least we’re starting to see the game plan.”

Fed officials agreed at their last meeting that if the economy continued to improve, they could start reducing their monthly bond purchases as soon as next month and bring them to an end by the middle of 2022.

The S&P 500 rose 13.15 points to 4,363.80. The Dow slipped 0.53 points, or less than 0.1%, to 34,377.81. The tech-heavy Nasdaq gained 105.71 points to 14,571.64.

Small company stocks also rose. The Russell 2000 index added 7.70 points, or 0.3%, to 2,241.97.

Banks were among the heaviest weights on the market. JPMorgan Chase fell 2.6% after its latest earnings showed that the bank struggled to grow revenues with interest rates at near-zero levels. Falling bond yields also weighed on the sector, which relies on higher yields to charge more lucrative interest on loans. American Express fell 3.5% and Capital One Financial dropped 3.3%.

The yield on the 10-year Treasury fell to 1.54% from 1.58% late Tuesday.

Delta Air Lines slid 5.8% for the biggest drop in the S&P 500 after warning investors that rising fuel prices will challenge its ability to remain profitable. It also forecast higher labor costs. United Airlines fell 3.9% and American Airlines slid 3.3%.

"Crude oil is going to continue to weigh on the transportation sector, particularly the airlines,” Kinahan said.

The latest update on inflation was mostly taken in stride. Consumer prices rose 5.4% in September from a year ago, matching the highest rate since 2008. The figure is slightly higher than economists expected. A wide range of businesses have been dealing with supply chain disruptions and delays amid rising demand for goods, and many have warned that will increase costs and crimp their financial results.

“There’s a lot of nervousness and anxiety about inflation right now," said Kristina Hooper, chief global market strategist at Invesco. “We're going to see a lot of volatility and shifts in leadership; that's just part of the transition period we're in.”

Many companies have been raising prices to offset higher shipping and raw materials costs. Analysts are concerned that higher prices could stall consumer spending, the key driver for economic growth. The latest report from the Labor Department showed that the costs of new cars, food, gas, and restaurant meals all jumped in September.

Investors will get more data on consumer spending on Friday when the Commerce Department reports retails sales for September.

More big banks are scheduled to release earnings this week. Bank of America, Wells Fargo and Citigroup will follow with their latest quarterly results on Thursday. Corporate earnings reports will ramp up after this week and analysts have said that might help show investors a clearer path ahead in what has been a choppy market.

ASX 200 expected to rebound

The Australian share market looks set to bounce back strongly on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 46 points or 0.65% higher this morning.

This follows a decent night on Wall Street, which on closing sees the Dow Jones flat , the S&P 500 up 0.30%, and the Nasdaq trading 0.73% higher.

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Gunnerguy

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Modest Gain Breaks a 3-Day Losing Streak for S&P 500 Index

Stocks ended another day of choppy trading modestly higher Wednesday, enough to break a three-day losing streak for the S&P 500.

By Associated Press

Oct. 13, 2021, at 4:51 p.m.

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

Major U.S. stock indexes closed mostly higher Thursday, snapping a three-day losing streak for the S&P 500 despite another choppy day of trading.

The benchmark index rose 0.3% after having been down 0.5% in the early going. It's still on pace for a 0.6% weekly loss. The Dow Jones Industrial Average ended flat, while the Nasdaq rose 0.7%.

Most of the S&P 500′s 11 sectors rose, with technology and communication accounting for a big share of the gains. A mix of companies that rely on consumer spending also helped lift the market. Financial and energy companies fell.

Investors had their eye on company earnings and inflation data. They also got more insight into the Federal Reserve's next policy moves after the central bank released the minutes from its policymakers' meeting

The minutes, which revealed Fed officials discussed how the central bank might begin to taper the unprecedented financial support it began giving the economy since the early days of the pandemic, may have helped give the market an afternoon boost after its downbeat start, said J.J. Kinahan, chief strategist with TD Ameritrade.

“You’re starting to get a framework of how they’re going to go about it, and the market is really just desperate for some clarity,” he said. "At least we’re starting to see the game plan.”

Fed officials agreed at their last meeting that if the economy continued to improve, they could start reducing their monthly bond purchases as soon as next month and bring them to an end by the middle of 2022.

The S&P 500 rose 13.15 points to 4,363.80. The Dow slipped 0.53 points, or less than 0.1%, to 34,377.81. The tech-heavy Nasdaq gained 105.71 points to 14,571.64.

Small company stocks also rose. The Russell 2000 index added 7.70 points, or 0.3%, to 2,241.97.

Banks were among the heaviest weights on the market. JPMorgan Chase fell 2.6% after its latest earnings showed that the bank struggled to grow revenues with interest rates at near-zero levels. Falling bond yields also weighed on the sector, which relies on higher yields to charge more lucrative interest on loans. American Express fell 3.5% and Capital One Financial dropped 3.3%.

The yield on the 10-year Treasury fell to 1.54% from 1.58% late Tuesday.

Delta Air Lines slid 5.8% for the biggest drop in the S&P 500 after warning investors that rising fuel prices will challenge its ability to remain profitable. It also forecast higher labor costs. United Airlines fell 3.9% and American Airlines slid 3.3%.

"Crude oil is going to continue to weigh on the transportation sector, particularly the airlines,” Kinahan said.

The latest update on inflation was mostly taken in stride. Consumer prices rose 5.4% in September from a year ago, matching the highest rate since 2008. The figure is slightly higher than economists expected. A wide range of businesses have been dealing with supply chain disruptions and delays amid rising demand for goods, and many have warned that will increase costs and crimp their financial results.

“There’s a lot of nervousness and anxiety about inflation right now," said Kristina Hooper, chief global market strategist at Invesco. “We're going to see a lot of volatility and shifts in leadership; that's just part of the transition period we're in.”

Many companies have been raising prices to offset higher shipping and raw materials costs. Analysts are concerned that higher prices could stall consumer spending, the key driver for economic growth. The latest report from the Labor Department showed that the costs of new cars, food, gas, and restaurant meals all jumped in September.

Investors will get more data on consumer spending on Friday when the Commerce Department reports retails sales for September.

More big banks are scheduled to release earnings this week. Bank of America, Wells Fargo and Citigroup will follow with their latest quarterly results on Thursday. Corporate earnings reports will ramp up after this week and analysts have said that might help show investors a clearer path ahead in what has been a choppy market.

ASX 200 expected to rebound

The Australian share market looks set to bounce back strongly on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 46 points or 0.65% higher this morning.

This follows a decent night on Wall Street, which on closing sees the Dow Jones flat , the S&P 500 up 0.30%, and the Nasdaq trading 0.73% higher.

View attachment 131500
Before @bigdog writes his end of the (US) day briefing (which is the first thing I read every morning over a coffe and before the family gets out of bed), I’m just wondering ...... is this the start of the 1-2-3 week ‘blow off top’ ??

I guess I’ll see the commentary with my coffee in about 7 hours ...

Gunnerguy
 
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Before @bigdog writes his end of the (US) day briefing (which is the first thing I read every morning over a coffe and before the family gets out of bed), I’m just wondering ...... is this the start of the 1-2-3 week ‘blow off top’ ??

I guess I’ll see the commentary with my coffee in about 7 hours ...

Gunnerguy
The S&P 500 has taken out one recent high, and is now just 50 points below the next recent high, giving us a higher low in the process. The market is still very strong going into the close, dropping only a point or two from the daily high. I guess anything could happen from here, until that next high at 4472 is taken out.

The computer is still neutral US equities, but getting ready to jump back on to the "long" bandwagon in the next day or so if this push continues.

KH
 

bigdog

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US stocks rally the most since March as momentum builds

By DAMIAN J. TROISE and ALEX VEIGA

Technology companies powered a broad rally for stocks on Wall Street Thursday, lifting the S&P 500 to its biggest gain since March.

The benchmark index rose 1.7% a day after breaking a three-day losing streak. The Dow Jones Industrial Average rose 1.6% and the tech-heavy Nasdaq climbed 1.7%.

More than 90% of stocks within the S&P 500 gained ground. Apple and Microsoft were among the big gainers in the technology sector, each rising more than 2%.

Financial and health care stocks also did well. JPMorgan Chase rose 1.5%. UnitedHealth Group rose 4.2% after the health insurer raised its profit forecast for the year following a strong third quarter.

The market’s gains came as investors welcomed another batch of encouraging quarterly report cards from several companies. Every S&P 500 company that reported earnings so far this week has exceeded Wall Street’s forecasts.

“It’s not surprising that the market has reacted pretty well to that,” said Randy Frederick, vice president of trading & derivatives at Charles Schwab.

The S&P 500 rose 74.46 points to 4,438.26. It’s now on pace for a weekly gain. The Dow climbed 534.75 points to 34,912.56. The Nasdaq added 251.79 points to 14,823.43.

Small company stocks also notched gains. The Russell 2000 index rose 32.21 points, or 1.4%, to 2,274.18.

This is the first big week for companies reporting their most recent quarterly financial results. Investors have had mixed reactions so far to the latest round of bank earnings. Bank of America rose 4.5% Thursday after beating analysts’ forecasts. Wells Fargo also beat forecasts, but it fell 1.6% as profits from lending fell compared with a year ago.

Investors were also reviewing the latest data on jobs and inflation as they try to gauge the economy’s health and path forward.

The Labor Department said the number of Americans applying for unemployment benefits last week fell to its lowest level since the pandemic began. It’s a positive sign for a job market that is still trying to recover from the initial hit from the pandemic 18 months ago. A surge of cases over the summer stunted the recovery.

The latest report on inflation showed that businesses continue to face pressure from rising costs. The Labor Department said inflation at the wholesale level rose 8.6% in September compared to a year ago, the largest advance since the 12-month change was first calculated in 2010.

The report came a day after the government said inflation at the consumer level rose 5.4% in September from a year ago, matching the highest rate since 2008.

The market largely took the inflation reports in stride, which suggests investors may be feeling more at ease since the Federal Reserve has signaled it may begin to taper the unprecedented financial support it has been giving the economy since the early days of the pandemic and eventually begin raising its benchmark interest rate in order to combat rising inflation.

“The market is a lot more concerned about inflation than it is about interest rates going up,” Frederick said. “At this point, yes, inflation is high, but the Fed seems like its ready to raise rates to control it and the market seems to be comfortable with that.”

Rising inflation has been raising costs for consumer goods. Analysts are concerned that could affect how much people spend and slow down the economic recovery. Investors will get an update on spending Friday when the Commerce Department reports retail sales for September.

ASX 200 expected to rise again

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 45 points or 0.6% higher.

This follows a very strong night of trade on Wall Street, on closing sees the Dow Jones up 1.56%, the S&P 500 1.71% higher, and the Nasdaq up 1.73%.

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Stocks end higher, giving S&P 500 its best week since July

By STAN CHOE and ALEX VEIGA

Wall Street added to its recent gains Friday as stocks closed higher, driving the S&P 500 to its best week since July.

The S&P 500 rose 0.7% for its third straight gain and ended the week 1.8% higher. The Dow Jones Industrial Average rose 1.1% and the Nasdaq composite gained 0.5%.

The latest rally came as investors welcomed encouraging quarterly report cards from several companies. Leading the way for the S&P 500 was freight deliverer J.B. Hunt Transport Services, which jumped 8.7% after reporting stronger profits for the summer than Wall Street expected. Goldman Sachs rose 3.8% and Alcoa surged 15.2% after it beat earnings expectations and announced a dividend payment and buyback of its stock.

The positive company earnings dovetailed with a report showing people spent much more at U.S. retailers last month than Wall Street expected. Sales at stores, restaurants and other retail establishments rose 0.7% from August instead of falling, as economists forecast.

“We saw retail sales this morning come in pretty strong,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute. ”(Stocks) are still at pretty reasonable valuations with another earnings season having just ticked on, and thus far at least, some pretty good results.”

The S&P 500 rose 33.11 points to 4,471.37. The Dow gained 382.20 points to 35,294.76, and the Nasdaq rose 73.91 points to 14,897.34.

Friday’s gain follows up on a 1.7% jump for the S&P 500 Thursday, its best day since March, which was driven by stronger-than-expected earnings reports and encouraging data on the job market.

It’s a turnaround from a shaky few weeks, when the benchmark index fell as much as 5.2% from its record set on Sept. 2. Worries about stubbornly high inflation, reduced support for markets from the Federal Reserve and a slowing economy helped to knock stock prices around. The S&P 500 is back within 1.5% of its all-time high.

Earnings reporting season has just begun, but early indicators are encouraging. All but one of the 19 companies in the S&P 500 that reported quarterly results this week topped analysts’ profit forecasts. Such strength is crucial after climbing interest rates heightened worries that stock prices had grown too expensive relative to profits.

The stronger-than-expected reports on the economy also help calm chatter about “stagflation,” which is the feared marriage of a stagnating economy and high inflation.

Of course, all is not clear yet. A report on Friday showing consumer sentiment was weaker than expected amid inflation worries helped limit the market’s gains.

Still, stocks of companies whose profits are most closely tied to the strength of the economy, including retailers, automakers and travel-related businesses, led the way higher Friday. Amazon rose 3.3%, Tesla added 3% and Marriott International gained 3.1%.

Other than financial companies, which benefited from the better-than-expected profit reports from several big-name banks, industrial and health care businesses were also among the strongest gainers. Caterpillar rose 2.4%, while UnitedHealth added 1.8%.

Johnson & Johnson gained 0.7% after a Food and Drug Administration panel endorsed booster doses of the company’s single-shot COVID-19 vaccine. The panel said Friday that the booster should be offered at least two months after immunization but didn’t suggest a firm time.

Treasury yields also rose following the much stronger-than-expected report on retail sales. The yield on the 10-year note climbed to 1.57% from 1.52% late Thursday.

“The biggest surprise on rates continues to be how low they are relative to all the anecdotal evidence and all the data about inflation that we see,” Samana said.

Higher Treasury yields in recent weeks have been holding back technology and other high-growth stocks recently. When bonds are paying more in interest, investors aren’t as willing to wait as long a time for big profit growth expectations to come to fruition or to pay as high prices for them.

Tech stocks in the S&P 500 fared a little better Friday, matching the broader market with a 0.8% gain, while the communication-services sector that includes many internet companies slipped 0.1%.

Stock markets overseas also notched gains. In Europe, Germany’s DAX returned 0.8%, and France’s CAC 40 gained 0.6%. The FTSE 100 in London rose 0.4%.

In Asia, Tokyo’s Nikkei 225 added 1.8%, Hong Kong’s Hang Seng climbed 1.5% and Seoul’s Kospi advanced 0.9%.

The price of benchmark U.S. oil rose 1.2% to $82.28 per barrel, continuing a powerful run that has sent it up more than 70% this year and fanned worries about high inflation. The global benchmark for crude climbed 1%, though the price of U.S. natural gas fell 4.9%.


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ASX 200 expected to rise


The Australian share market looks set to start the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 31 points or 0.4% higher this morning.

This follows a strong end to the week on Wall Street, which saw the Dow Jones rise 1.1%, the S&P 500 climb 0.75%, and the Nasdaq push 0.5% higher.
 

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Stocks end mixed on Wall Street ahead of busy earnings week

By DAMIAN J. TROISE

Stocks wobbled to a mixed finish on Wall Street Monday as the market’s momentum slowed down following its best week since July.

The muted trading comes ahead of a busy week of corporate earnings that could help investors find a smoother path ahead for stocks after weeks of choppiness. Investors are also trying to figure out how the broader economy will continue its recovery with COVID-19 lingering as a threat, while businesses and consumers face rising inflation.

The S&P 500 rose 15.09 points, or 0.3%, to 4,486.46, with stocks roughly split between gainers and losers. The benchmark index has been choppy for weeks. It rose 1.8% last week for its best week since July, though it shed 2.2% just two weeks prior.

The Dow Jones Industrial Average fell 36.15 points, or 0.1%, to 35,258.61. The Nasdaq rose 124.47, or 0.8%, 15,021.81.

Technology stocks and companies that rely on direct consumer spending made broad gains, but were tempered by losses from health care and other companies. Chipmaker Nvidia rose 1.6% and Target rose 3.2%. Medical device company Medtronic fell 5.5%.

Energy stocks managed gains as U.S. crude oil prices bounced from small gains to losses. Prices have soared nearly 70% so far this year. Occidental Petroleum rose 4%. A mix of retailers and other companies that rely on consumer spending also rose.

The yield on the 10-year Treasury rose to 1.58% from 1.57% late Friday.

The S&P 500 is still within roughly 1.1% of its all-time high set on Sept. 2, even with the swings within the broader market. Much of the churn is due to different sectors, such as technology stocks, shifting from leading gains to leading losses on any given day.

“For now, we’re going to maintain this sort of rotational correction,” said Liz Ann Sonders, chief investment strategist at Charles Schwab. “It’s just that as each pocket goes through moments of weakness, there are pockets of strength that level it out.”

Investors are busy reviewing the latest round of corporate earnings for a better picture of how companies fared through the surge of virus cases last quarter and how many are dealing with rising inflation’s impact on costs.

A wide range of companies have warned that supply chain problems have been crimping operations and could dent their finances through the rest of the year. Wall Street is concerned that as businesses face higher costs they will pass them along to consumers and that could stymie spending and the broader economic recovery.

Health care giant Johnson & Johnson will report its latest results on Tuesday, as will streaming entertainment service Netflix. Investors will get a better sense of how airlines are recovering when several major carriers report results this week. United Airlines will report its latest results on Tuesday, with American Airlines and Southwest Airlines reporting their results on Thursday.

ASX 200 expected to fall
The Australian share market looks set to give back the majority of yesterday’s gains on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.3% lower this morning.

This follows a mixed night on Wall Street which on closing sees the Dow Jones down 0.1%, the S&P 500 up 0.34%, and the Nasdaq trading 0.84% higher.

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Tech, health care stocks lead Wall Street indexes higher

By DAMIAN J. TROISE and ALEX VEIGA

Health care and technology companies led a broad rally for stocks on Wall Street Tuesday as investors welcomed another batch of encouraging company earnings reports.

The S&P 500 rose 0.7%, driving the benchmark index to its fifth straight gain. The Dow Jones Industrial Average rose 0.6% and the tech-heavy Nasdaq rose 0.7%.

Among the tech sector winners were Apple, which rose 1.5%, and software maker Adobe, which added 2.1%. Johnson and Johnson, the world’s biggest maker of health care products, rose 2.3% after raising its profit forecast for the year following the release of strong third-quarter earnings.

“Were starting to get more earnings in for the third quarter, and so far so good,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management. “So far, the results are coming in and we haven’t had a material downgrade in outlooks.”

The S&P 500 rose 33.17 points to 4,519.63. The index is now within 0.4% of the all-time high it set Sept. 2. The Dow gained 198.70 points to 34,457.31. The Nasdaq rose 107.28 points to 15,129.09.

Small company stocks also rose. The Russell 2000 index gained 8.07 points, or 0.4%, to 2,275.91.

The broad gains for stocks follow a mixed start to the week as investors continue monitoring corporate earnings for clues as to how companies will move forward through the year as they deal with rising inflation, global supply chain delays and the economic recovery slowing down.

“There was a nervousness going in as we started to see some supply chain interruptions,” said J.J. Kinahan, chief strategist with TD Ameritrade. “But, the overall picture is still a fairly positive one.”

Those supply chain problems are going to have different impacts on companies and industries, he said, including how they absorb the costs and whether they raise prices. Procter & Gamble fell 1.2% after saying it will raise prices as it faces higher commodity and freight costs.

So far, however, rising oil prices and other costs haven’t cut in severely on company profit margins, Hainlin said.

All told, analysts polled by FactSet are now forecasting earnings growth of 30% for the S&P 500, up from 23% in June.

The first exchange-traded fund to track Bitcoin futures rose 4.7% in its market debut Tuesday. Trading was very heavy for the ProShares Bitcoin Strategy ETF, reflecting the increasing interest in cryptocurrencies.

The ProShares Bitcoin Strategy ETF offers a potentially easier way for some investors to get into the fast-growing crypto world, though it invests in futures contracts for Bitcoin rather than the currency itself. The price of Bitcoin rose 4.5%, according to CoinDesk. Its running about 1.2% below its all-time high of $64,888.99 per coin.

Bond yields moved higher. The yield on the 10-year Treasury rose to 1.64% from 1.58% late Monday.

Energy stocks gained ground as oil prices rose 0.6%. Exxon Mobil rose 1.5%. U.S. crude oil prices are up 73% for the year, while natural gas prices have risen roughly 81%. The prices have surged as the global economic recovery drives demand and it is raising concerns about a global energy crunch.

Insurance company Travelers rose 1.6% after it handily beat Wall Street’s third-quarter profit forecasts. Other large companies, including streaming entertainment giant Netflix and United Airlines, will report their results after the market closes.

Several key earnings from airlines this week will also give investors a clearer picture into the impact from a surge in COVID-19 cases over the summer. American Airlines and Southwest Airlines will report their results on Thursday.

Outside of earnings, the Commerce Department reported that U.S. home construction fell 1.6% in September as builders continue to be tripped up by supply chain bottlenecks. Shares of homebuilders were weaker. Beazer Homes fell 2.7% and Hovnanian Enterprises fell 3%.

ASX 200 poised to rise

The Australian share market looks set to bounce back on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 41 points or 0.55% higher this morning.

This follows a solid night on Wall Street, which on closing sees the Dow Jones up 0.56%, the S&P 500 up 0.74%, and the Nasdaq trading 0.71% higher.


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https://apnews.com/article/business-asia-sydney-tokyo-europe-44fe108334b35d7d876e7965b26dddc2

Stocks end higher, bringing S&P 500 to the cusp of a record

By DAMIAN J. TROISE

Solid earnings from health care companies helped send stocks higher on Wall Street Wednesday and pushed the benchmark S&P 500 to the brink of another record high.

The market has been gaining ground as investors shift their focus to the latest round of corporate earnings. Stocks have been choppy for weeks as rising inflation and lackluster economic data raised concerns about the path ahead for the economic recovery.

The S&P 500 rose 16.56 points, or 0.4%, to 4,536.19. It’s the sixth straight gain for the benchmark index and puts it less than a point from the all-time high it set on Sept. 2.

The Dow Jones Industrial Average rose 152.03 points, or 0.4%, to 35,609.34. The Nasdaq fell 7.41 points, or less than 0.1%, to 15,121.68.

“The reason we’re seeing this rally over the last week is that company earnings are looking really good,” said Sylvia Jablonski, chief investment officer at Defiance ETFs. “Most companies are managing inflationary pressures and pricing issues and that’s helping to alleviate concerns about overvaluation and inflation.”

Wall Street cheered solid earnings from a variety of health care companies. Abbott Laboratories, which makes infant formula, medical devices and drugs, rose 3.3% after handily beating analysts’ third-quarter profit forecasts. Health insurer Anthem rose 7.7% after also reporting strong financial results. Technology stocks lagged the broader market.

Bond yields rose. The yield on the 10-year Treasury rose to 1.65% from 1.63% late Tuesday.

Netflix fell 2.2% after forecasting earnings for its current quarter that were below analysts’ estimates.

PayPal fell 4.9% following reports that it is considering buying digital pinboard and shopping tool Pinterest, which jumped 12.8%.

The price of Bitcoin rose above $66,000 for the first time. The gains came a day after the first exchange-traded fund linked to Bitcoin futures attracted huge interest from investors looking to get into the surging field of cryptocurrencies.

Investors are busy reviewing the latest report cards from companies as they try to get a clearer understanding of how rising inflation and the lingering threat from COVID-19 will affect the economy.

A key concern remains supply chain disruptions and rising materials costs cutting into profits for many companies. Higher costs for companies could mean higher prices for consumers, which could threaten spending that is supporting the recovery.

Oilfield services company Baker Hughes fell 5.7% after reporting weak third-quarter financial results, partly because of supply chain problems and higher costs. Brinker International, which operates Chili’s Grill & Bar, fell 9.7% after its fiscal first-quarter profit fell far short of analysts’ forecasts as it faces higher commodity and labor costs.

Investors seem to be taking the impact from rising inflation on companies in stride, said Greg Bassuk, CEO at AXS Investments.

“Without big surprises on the downside, or something really outsized, the bulls are overtaking the bears,” he said.

Rising inflation has also put a sharper focus on the Federal Reserve and its plans to start trimming bond purchases that have helped keep interest rates low. The central bank maintained through most of the year that inflation would likely be temporary and tied to the economic recovery, but it has grown more concerned about rising inflation persisting.

Railroad operator CSX gained ground in after-hours trading after reporting solid financial results, while Tesla slipped after reporting its results.

There are still several large companies on deck to release their earnings this week. American Airlines, Southwest Airlines and Union Pacific will report on Thursday.

ASX 200 expected to rise

The Australian share market looks set to rise again on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 23 points or 0.3% higher this morning.

This follows a decent night on Wall Street, which on closing sees the Dow Jones up 0.43%, the S&P 500 up 0.37, but the Nasdaq down 0.05%. The Dow Jones hit a record high during the session.

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https://www.usnews.com/news/busines...s-mixed-after-evergrande-sale-deal-called-off

Stocks end mostly higher, enough for S&P 500 to set record

By DAMIAN J. TROISE and ALEX VEIGA

A wave of buying in the last hour of trading left stocks mostly higher on Wall Street, enough for the S&P 500 to beat the record high close it set in early September.

A wobbly day of trading on Wall Street left major stock indexes mostly higher Thursday, nudging the S&P 500 to an all-time high.

The benchmark index bounced back from an early slide to rise 0.3%, its seventh straight gain. The S&P 500 eclipsed the record high it set on Sept. 2 and is on pace for its third straight weekly gain.

The Nasdaq also recovered from a sluggish start, adding 0.6%. The Dow Jones Industrial Average ended barely in the red for the day, weighed down by a steep drop in IBM. The blue-chip index is just below its all-time high set on Aug. 16.

A mix of companies that rely on direct consumer spending led the gains. Tesla rose 3.3% after reporting encouraging third-quarter profits, despite parts shortages and shipping delays.

Technology and health care stocks also helped lift the market. U.S. crude oil prices fell 1.1% and weighed down energy stocks. Devon Energy fell 3% and Schlumberger fell 1.3%.

Financial companies also fell broadly. Capital One slid 4.4% and Discover Financial Services dropped 6.1%.

The uneven finish came as investors continued to review the latest company earnings reports, with global supply chain problems and the impact from rising inflation a key focus. Many companies have warned that the supply chain issues and overall higher costs will hurt operations and Wall Street is trying to gauge just how much it will sting corporate profit growth and margins.

Companies seem to be managing those higher costs and encouraging investors who had been uncertain in a very choppy market for weeks, said Sam Stovall, chief investment strategist at CFRA.

“Investors were willing to rotate rather than retreat while they waited for better news to take bigger and longer-term positions,” he said.

Wall Street is also concerned that rising inflation will force more companies to raise prices on goods, which could result in lower consumer spending and a stalled economic recovery.

The S&P 500 rose 13.59 points to 4,549.78. The Dow slipped 6.26 points, or less than 0.1%, to 35,603.08. The Nasdaq gained 94.02 points to 15,215.70.

Smaller stocks edged higher. The Russell 2000 rose 6.42 points, or 0.3%, to 2,296.18.

Several carmakers and automotive products companies made gains following Tesla’s latest earnings. Ford rose 3.2% and AutoZone rose 2.2%.

IBM slumped 9.6%, the biggest decline in the S&P 500, after reporting quarterly revenue that fell shy of analysts’ forecasts.

WeWork rose 13.5% in its second attempt to become a publicly traded company. The company, which provides shared workspaces, had a spectacular collapse during its first attempt to do so two years ago and is emerging after the pandemic closed millions of square feet of office space.

Shares in a special-purpose acquisition company, or SPAC, that is planning on taking a new media company launched by former President Donald Trump public soared after news of the venture broke late Wednesday. Digital World Acquisition vaulted 356%. The company, which went public Sept. 8, has merged with Trump Media & Technology Group, which plans to launch a social media app and streaming video service.

Bond yields moved higher. The yield on the 10-year Treasury rose to 1.69% from 1.63% late Wednesday.

European markets closed lower and Asian markets ended mixed.

Outside of earnings, investors received an encouraging update on the labor market. The Labor Department reported that the number of Americans applying for unemployment benefits fell last week to a new low point since the pandemic erupted.

ASX 200 expected to edge higher

The Australian share market looks set to end the week on a subdued note. According to the latest SPI futures, the ASX 200 is expected to open the day 2 points higher.

This follows a mixed night of trade on Wall Street, on closing sees the Dow Jones down 0.02%, the S&P 500 up 0.3%, and the Nasdaq up 0.62%.


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https://apnews.com/article/donald-trump-business-media-1d3dddadd1efea9b306469515b900bc9

Stock tied to Trump media venture soars in another frenzy

By STAN CHOE

The company planning to bring President Donald Trump’s new media venture to the stock market soared further on Friday amid another frenzy of trading.

Digital World Acquisition Corp. nearly tripled in the first minute of trading before it was temporarily halted. It then gave up a chunk of those gains, but it still ended the day with a 107% gain to $94.20. In the morning, it climbed as high as $175.

A day before, the stock more than quadrupled to $45.50 from $9.96 after it said it would merge with Trump Media & Technology Group. The new venture, with Trump as its chairman, aims to challenge Facebook, Twitter and even Disney’s streaming video service.

Experts are mixed on the company’s prospects, and the deal announcing its merger with Digital World Acquisition was unusual in how few details it offered investors. The company was incorporated in February but has yet to publish an app, offer details about its financials or say how much it plans to charge for its on-demand streaming and other services. All of that could give investors pause, but not by enough to keep Digital World Acquisition Corp.’s stock from soaring.

Some investors appear to be believers in Trump’s ideology, while others see a chance for the company to quickly gain a big audience. A big chunk of investors, though, appeared simply to be grabbing for a chance at a quick profit.

Several threads on Reddit’s WallStreetBets forum, where millions of traders share their successes and failures, had users bragging about how much money they made by jumping in and out of Digital World Acquisition Corp. Others were asking if they should listen to the fear they were feeling of missing out. WallStreetBets gained fame early this year after its members helped drive GameStop and other formerly downtrodden stocks to extreme heights, levels that professional investors saw as dangerously untethered to reality.

Trading in Digital World Acquisition Corp.’s stock was so furious, and swings in its price were so sharp, that it was temporarily halted a dozen times on Friday.

Digital World Acquisition is a special-purpose acquisition company, something that’s typically called a SPAC or “blank-check” company. It’s sitting on a little less than $300 million of cash that it raised in its own initial public offering, before it went looking for a company to acquire.

SPACs can offer privately held companies a quicker and easier way to get their stocks on an exchange, by merging with them. They were wildly popular earlier this year, but activity had been receding as regulatory scrutiny on them and interest in them dimmed, at least until Wednesday’s Trump-related announcement.

Ít can be difficult for skeptical investors to bet that a SPAC’s price will fall, a move called “shorting,” said Michael Ohlrogge, an assistant professor of law at New York University who has researched SPACs. With few short sellers, that can remove a force pushing a stock’s price down, allowing it to jump even higher than it would otherwise.

“Overall, I think it’s a big difficulty because it leads to their prices being inflated,” Ohlrogge said.

All the action in Digital World Acquisition’s stock is happening before investors have even had a chance to see a proxy statement, which will give details about the merger and possibly about how Trump Media & Technology Group will operate.

The last time Trump ran a publicly traded company, it didn’t end up well for investors. His casino company, Trump Entertainment Resorts, lost hundreds of millions of dollars over more than a dozen years and filed for bankruptcy several times, socking shareholders with big losses. Trump fared better. He took in $82 million in fees, salary and bonuses over the same period, according to Fortune magazine.

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