NYSE Dow Jones finished today at:

[bigdog]

Stock market today: Wall Street slumps as good news for the economy is once again bad for stocks

Good news on the U.S. economy is back to being bad for Wall Street. The S&P 500 swung to a loss of 1.1% after a pair of reports on the economy came in better than expected.

apnews.com

Wall Street slumps as good news for the economy is once again bad for stocks​

By STAN CHOE
Updated 8:15 AM GMT+11, January 8, 2025

NEW YORK (AP) — Good news on the U.S. economy is back to being bad for Wall Street, and the stock market slumped Tuesday following better-than-expected reports on the job market and business activity.

The S&P 500 fell 1.1% after giving up an early gain. The Dow Jones Industrial Average dropped 178 points, or 0.4%, while the Nasdaq composite tumbled 1.9%.

Stocks dropped under the weight of rising yields in the bond market, which jumped immediately after the release of the encouraging reports on the economy. One said U.S. employers were advertising more job openings at the end of November than economists expected. The other said activity for finance, retail and other services businesses grew much faster in December than expected.

The strong reports are of course good news for workers looking for jobs and for anyone worried about a possible recession that earlier seemed inevitable to pessimists. But such a solid economy could also keep up pressure on inflation, and it could make the Federal Reserve less likely to deliver the cuts to interest rates that Wall Street loves.

The Fed began cutting its main interest rate in September to give the economy a boost, but it’s hinted a slowdown in easing is coming. The threat of tariffs from President-elect Donald Trump has raised worries about possible upward pressure on inflation, which has stubbornly remained just above the Fed’s 2% target.

Tuesday’s report on U.S. services industries from the Institute for Supply Management also contained discouraging trends on inflation, saying price increases accelerated in December.

Expectations for fewer cuts to interest rates in 2025 had already been building for weeks, which sent longer-term Treasury yields upward. So have worries about other possible Trump policies, such as tax cuts, which could swell the U.S. government’s debt and likewise push yields higher.

Those higher yields make Treasury bonds more attractive to investors who might otherwise buy stocks, which in turn puts downward pressure on stock prices, and the super-safe bonds are paying notably more. The yield on a 10-year Treasury climbed to 4.69% from 4.63% shortly before the release of Tuesday’s reports and from just 4.15% in early December.

High yields can put heavy pressure on stocks seen as the most expensive, which pulls the lens toward Nvidia and other Big Tech stocks that have soared in the frenzy around artificial-intelligence technology.

Nvidia had been on track to set another all-time high in morning trading, after CEO Jensen Huang unveiled a suite of new products and partnerships the night before. He talked up the potential for AI technology in robotics, among other opportunities for big growth.

But after Tuesday morning’s economic reports, which hit the market after its first half hour of trading, Nvidia swung to a loss of 6.2% and became the heaviest weight on the S&P 500. Losses for Amazon, Tesla, Apple and Microsoft were the next-strongest forces dragging the index lower.

Now that worries from the summer about a potentially slowing U.S. economy have abated and the 10-year Treasury yield is firmly above 4.50%, “we believe the market is shifting into a ‘good news is bad news’ environment again,” according to Bank of America strategists led by Ohsung Kwon.

That raises the stakes for Friday’s coming update on the U.S. job market, which economists expect will show a slowdown in overall hiring. They’re looking for growth of 156,500 jobs in December, according to FactSet.

A “Goldilocks” reading for the U.S. stock market that would be solid but not too strong for the Fed would likely be in the 125,000 to 175,000 range, along with an unemployment rate of 4.2%, according to Bank of America.

Helping to keep Tuesday’s losses for U.S. stock indexes in check was Cintas, which rose 2% after making public its offer to buy its smaller rival, UniFirst, for $275 per share in cash.

Cintas said it first made that offer in November but has been unable to get UniFirst’s board to meet. UniFirst had rejected an earlier offer of $255 per share, said Cintas, which provides uniforms, restroom supplies, fire extinguishers and other products to businesses.

UniFirst jumped 20.9% to $204.69, below Cintas’ offer price.

Elsewhere on Wall Street, Shutterstock and Getty climbed after they announced they were joining to become a $3.7 billion visual content company to provide customers with a broader array of still imagery, video, music, 3D and other media.

Getty Images shareholders will own a slight majority of the combined company. Getty shares jumped 24.1%, while Shutterstock climbed 14.8%.

All told, the S&P 500 fell 66.35 points to 5,909.03. The Dow Jones Industrial Average slipped 178.20 to 42,528.36, and the Nasdaq composite sank 375.30 to 19,489.68.

In stock markets abroad, some notable Chinese companies fell after the U.S. Defense Department added dozens of them to a list of companies it says have ties to China’s military. The announcement caused some of the companies to protest and say they will seek to have the decision reversed.

Added to the list were gaming and technology company Tencent, artificial intelligence firm SenseTime and the world’s biggest battery maker CATL. Tencent’s stock that trades in Hong Kong fell 7.3%.

That helped pull the Hang Seng index down 1.2%, but indexes were stronger elsewhere in China and across much of Asia and Europe.

ASX 200 expected to fall ​

The Australian share market looks set to fall on Wednesday after a poor night of trade on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 7 points or 0.1% lower this morning.

Good news on the U.S. economy is back to being bad for Wall Street, and the stock market slumped Tuesday following better-than-expected reports on the job market and business activity.

The S&P 500 fell 1.1% after giving up an early gain. The Dow Jones Industrial Average dropped 178 points, or 0.4%, while the Nasdaq composite tumbled 1.9%.

All told, the S&P 500 fell 66.35 points to 5,909.03. The Dow Jones Industrial Average slipped 178.20 to 42,528.36, and the Nasdaq composite sank 375.30 to 19,489.68

 

[bigdog]

US stock markets will close on 9 January 2025 in honour of former President Jimmy Carter.

Stock market today: Wall Street holds firmer following Tuesday's slide

U.S. stock indexes held firmer and finished mixed a day after strong reports on the economy stirred up worries that inflation and interest rates may remain higher than expected.

apnews.com

Wall Street holds firmer following Tuesday’s slide​

By STAN CHOE
Updated 8:19 AM GMT+11, January 9, 2025

NEW YORK (AP) — Wall Street held firmer on Wednesday, a day after strong reports on the economy hurt U.S. stocks by stirring up worries that inflation and interest rates may remain higher than expected.

The S&P 500 rose 0.2% to recover a bit of its 1.1% slump from the day before. The Dow Jones Industrial Average added 106 points, or 0.3%, and the Nasdaq composite edged down by 0.1%.

In the bond market, which has been the bigger focus for Wall Street recently, the moves were also more modest following the last month’s charge higher for yields. Higher yields hurt stocks by making it more expensive for companies and households to borrow and by pulling some investors toward bonds and away from stocks.

The increased calm returned to the market after reports on the economy Wednesday weren’t as strong as Tuesday’s. That can counterintuitively help Wall Street because it raises hopes that the Federal Reserve may keep cutting short-term interest rates. Wall Street loves lower rates, which can goose the economy and boost prices for investments.

Inflation fears have stocks lower. More from AP’s Seth Sutel.

Fed Governor Christopher Waller said in a speech Wednesday he still expects the central bank to deliver more easing of rates in 2025, pushing back against nascent speculation it may already be done after cutting three times since September.

Waller said he doesn’t expect tariffs that are possibly coming under President-elect Donald Trump to have a “significant or persistent effect” on inflation. And even though inflation has shown stubbornness recently, he still sees it trending downward over the long term.

“If the outlook evolves as I have described here, I will support continuing to cut our policy rate in 2025,” he said. “The pace of those cuts will depend on how much progress we make on inflation, while keeping the labor market from weakening.”

The yield on the two-year Treasury, which tends to closely track expectations for Fed action, fell immediately after Waller’s speech and the release of a couple economic reports. It eased to 4.27% from 4.29% late Tuesday.

One of the reports suggested U.S. employers outside of the government slowed their hiring in December by more than economists expected. That could offer a hint of what Friday’s more comprehensive jobs report from the Labor Department will show.

That update will likely be the main event for Wall Street this week, particularly after the stock market’s closure on Thursday in observance of a National Day of Mourning for former President Jimmy Carter. The hope is that the jobs report will show enough strength to keep worries of a recession stifled but not so much that it keeps the Fed from cutting rates.

A separate report on Wednesday, meanwhile, said fewer U.S. workers applied for unemployment benefits last week than economists expected. It’s the latest signal that the job market remains remarkably solid.

The yield on the 10-year Treasury, which is the centerpiece of the bond market, eased to 4.67% from 4.69% late Tuesday. But it topped 4.70% earlier in the morning and is well above the 4.15% level it was at roughly a month ago. It was below 3.65% in September.

Such increases in yields make it more expensive for companies to borrow, and smaller companies can feel particular pain because of the need for many to borrow to grow. The Russell 2000 index of smaller stocks fell 0.5%.

Also on the losing end of Wall Street was Edison International, which tumbled 10.2% as massive wildfires burn in the Los Angeles area. The company’s Southern California Edison utility said Wednesday it shut off power to nearly 120,000 customers in six counties over safety concerns due to high winds and the risk of wildfires.

On the winning end of Wall Street, eBay jumped 9.9% for the biggest gain in the S&P 500. It’s beginning a collaboration with Meta Platforms where a pilot of select eBay listings will appear on Facebook Marketplace in the United States, Germany, and France.

Cal-Maine Foods climbed 1% after the egg producer reported stronger profit for the latest quarter than analysts expected. CEO Sherman Miller said it sold more dozens of eggs thanks in part to strong demand from the seasonal boost it gets leading into Thanksgiving.

Egg prices climbed late last year as a lingering outbreak of bird flu coincided with the high demand of the holiday baking season.

Delta Air Lines will report its first-quarter results on Friday, with big banks beginning next week to kick off the latest earnings reporting season in earnest.

All told, the S&P 500 rose 9.22 points to 5,918.25. The Dow Jones Industrial Average gained 106.84 to 42,635.20, and the Nasdaq composite slipped 10.80 to 19,478.88.

In stock markets abroad, indexes weakened were mixed across Europe and Asia. South Korea’s Kospi climbed 1.2%, but Hong Kong’s Hang Seng fell 0.9%.

ASX 200 expected to fall​

The Australian share market is set to open lower, a day after inflation data boosted hopes of a February interest rate cut. US markets have been a mixed bag, with not too much movement before the public holiday tomorrow to commemorate Jimmy Carter.

According to the latest SPI futures, the ASX 200 is expected to open the day 31 points or 0.37% lower this morning.

Wall Street held firmer on Wednesday, a day after strong reports on the economy hurt U.S. stocks by stirring up worries that inflation and interest rates may remain higher than expected.

The S&P 500 rose 0.2% to recover a bit of its 1.1% slump from the day before. The Dow Jones Industrial Average added 106 points, or 0.3%, and the Nasdaq composite edged down by 0.1%.

All told, the S&P 500 rose 9.22 points to 5,918.25. The Dow Jones Industrial Average gained 106.84 to 42,635.20, and the Nasdaq composite slipped 10.80 to 19,478.88.

Unfortunately could not get later update

 

[frugal.rock]

"NYSE Dow Jones finished today at:"​

the same as yesterday.
See post above.
RIP Jimmy Carter.

Thanks @bigdog you're on the ball. Woof !

 

[bigdog]

US stock markets was closed Thursday 9 January 2025 in honour of former President Jimmy Carter.

Stock market today: Global indexes are mixed as the US stock market remains closed

World shares were mixed as the U.S. stock market remained closed to observe a National Day of Mourning for former President Jimmy Carter.

apnews.com

Global indexes are mixed as the US stock market remains closed​

By ELAINE KURTENBACH
Updated 8:03 AM GMT+11, January 10, 2025

BANGKOK (AP) — World shares were mixed on Thursday as the U.S. stock market remained closed to observe a National Day of Mourning for former President Jimmy Carter.

London’s FTSE 100 climbed 0.8% to 8,319.69 as the value of the British pound slid against the U.S. dollar amid worries about the United Kingdom’s economy and its government’s finances. A weaker pound can boost profits for U.K. exporters, which can goose their stock prices.

Germany’s DAX lost 0.1% to 20,317.10, and France’s CAC 40 added 0.5% to 7,490.28.

In Asia, markets mostly declined as caution revived over a likely deepening of trade friction once President-elect Donald Trump takes office.

Shares fell in Tokyo after Japan reported strong wage growth for November, data that might help persuade its central bank to raise interest rates. The Nikkei 225 index dropped 0.9% to 39,605.09.

Hong Kong’s Hang Seng index edged 0.2% lower, to 19,240.89, while the Shanghai Composite index lost 0.6% to 3,211.39. The government reported that the consumer price index rose 0.1% in December from a year earlier, while wholesale or producer prices dropped 2.3%, signaling that demand remains slack in the world’s second-largest economy.

In Australia, the S&P/ASX 200 gave up 0.2% to 8,329.20.

South Korea’s Kospi edged less than 0.1% higher, to 2,521.90 despite strong gains for technology companies and automakers.

Taiwan’s Taiex sank 1.4% and the Sensex in India was down 0.7%. In Bangkok, the SET slipped 1.8%.

“Investors continue to navigate the unpredictable ‘what if’ trading landscape molded by Trump’s presidency — where the initial enthusiasm for tax cuts is now overshadowed by mounting concerns over proposed tariffs and bizarre geopolitical aspirations, like purchasing Greenland or exerting more control over the Panama Canal,” Stephen Innes of SPI Asset Management said in a commentary.

In the United States, the bond market remained open until its recommended closure at 2 p.m. Eastern time. Yields held relatively steady following a strong recent run that has rattled the stock market.

The yield on the 10-year Treasury was sitting at 4.69% after topping 4.70% the day before, when it neared its highest level since April. It was below 3.65% in September.

Higher yields hurt stocks by making it more expensive for companies and households to borrow and by pulling some investors toward bonds and away from stocks. Yields have been climbing as reports on the U.S. economy have come in better than economists expected. Worries about possible upward pressure on inflation from tariff, tax and other policies that Trump prefers have also pushed yields higher.

The next big event for Wall Street will arrive Friday, when the U.S. Labor Department releases the latest monthly update on the nation’s job market. The hope is that it will show enough strength to keep worries of a recession stifled but not so much that it keeps the Federal Reserve from continuing to cut interest rates.

U.S. benchmark crude oil rose 0.8% to settle at $73.92 per barrel. Brent crude, the international standard, rose 1% to $76.92 per barrel.

ASX 200 expected to rise​

The Australian share market looks set to rise on Friday as World shares were mixed on Thursday and after US Treasury yields retreat, Bitcoin plunges and global investors watch for US jobs data that could influence the outlook for interest rates.

According to the latest SPI futures, the ASX 200 is expected to open 26 points or 0.3% higher this morning.

US stock markets were closed Thursday 9 January 2025

Rest of World

 

[bigdog]

Stock market today: Wall Street recoils after good news on the economy raises inflation worries

U.S. stocks dropped on worries that good news on the job market may prove to be bad for Wall Street by keeping inflation and interest rates high.

apnews.com

Wall Street recoils after good news on the economy raises inflation worries​

By STAN CHOE
Updated 9:00 AM GMT+11, January 11, 2025

NEW YORK (AP) — U.S. stocks fell Friday on worries that good news on the job market may be too good and prove to be bad for Wall Street by keeping inflation and interest rates high.

The S&P 500 tumbled 1.5% to close its fourth losing week in the last five. The Dow Jones Industrial Average dropped 696 points, or 1.6%, and the Nasdaq composite sank 1.6%.

Stocks took their cue from the bond market, where yields leaped to crank up the pressure after a report said U.S. employers added many more jobs to their payrolls last month than economists expected.

Such strength in hiring is of course good news for workers looking for jobs. But it could also keep upward pressure on inflation by keeping the overall economy humming. That in turn could dissuade the Federal Reserve from delivering the cuts to interest rates that Wall Street loves. Lower rates can not only goose the economy but also boost prices for investments.

Fears of inflation have stocks lower. Hear more from AP’s Seth Sutel.

The Fed has already indicated it’s likely to ease rates fewer times this year than it earlier expected because of worries about higher inflation. That’s in part because some officials are taking seriously the possibility of tariffs and other policies coming from President-elect Donald Trump that could worsen inflation.

To be sure, Friday’s jobs report may not be as strong as it seems on the surface. While the overall number of hires in December blew past expectations, “manufacturing is still getting crushed,” said Brian Jacobsen, chief economist at Annex Wealth Management.

“The macroeconomy may be fine,” he said, “but each individual’s microeconomy could look very different.”

The raises in pay that workers are getting are also an important data point for the Fed, and gains in average hourly earnings were below 4% last month. That’s what “the Fed wants to see,” according to Wells Fargo Investment Institute Senior Global Market Strategist Scott Wren.

The nuanced takes helped Treasury yields give back some of their initial bursts following the release of the jobs report. But preliminary results from a separate report later in the morning underscored the issue. It suggested U.S. consumers are getting more pessimistic about where inflation is heading.

Consumers are expecting inflation in the coming year to be 3.3%, up from their expectation of 2.8% last month. It’s the highest reading in the University of Michigan’s survey since May. Expectations are worsening across different types of Americans, particularly for households that make less in income, according Joanne Hsu, director of the Surveys of Consumers.

The problem for Wall Street is that when traders were sending U.S. stock indexes to dozens of records last year, they were banking on a stream of rate cuts coming from the Fed. If fewer cuts materialize than expected, stock prices would likely either need to fall, or profits at companies would have to rise more strongly to make up for it.

Smaller companies can take worse hits from higher interest rates than their bigger rivals because of the need for many to borrow to grow. The Russell 2000 index of smaller stocks slumped 2.2%.

Constellation Brands tumbled 17.1% for the biggest loss in the S&P 500 after the seller of Modelo beer and Robert Mondavi wine reported weaker profit and revenue for the latest quarter than analysts expected. CEO Bill Newlands said the company is seeing subdued spending from its customers, who are looking for better values.

Insurance companies were also under pressure as wildfires continue to burn in the Los Angeles area. Many of the homes that have been destroyed were in expensive areas where the typical price can top $3 million, and such high-priced damage could eat into insurers’ profit. Allstate fell 5.6%, Travelers dropped 4.3% and Chubb lost 3.4%.

Delta Air Lines was able to fly 9% higher because it delivered a stronger profit report for the last three months of 2024 than analysts expected. The airline said it’s seeing strong demand for travel, which accelerated through the end of last year, and it expects that to continue into 2025.

Big banks will begin reporting their own results for the end of 2024 next week, as earnings season gets underway in earnest.

All told, the S&P 500 fell 91.21 points to 5,827.04. The Dow Jones Industrial Average dropped 696.75 to 41,938.45, and the Nasdaq composite sank 317.25 to 19,161.63.

In the bond market, the yield on the 10-year Treasury jumped to 4.76% from 4.68% late Thursday. In September, it was below 3.65%, marking a major move for the bond market.

The yield on the two-year Treasury, which moves more closely with expectations for what the Fed will do in the near term, climbed to 4.38% from 4.27% late Thursday.

Friday’s jobs report means traders see it as a near certainty that the Fed will not cut interest rates at its next meeting later this month. That would be the first time it’s stood pat following three straight cuts to interest rates.

A growing minority of traders on Wall Street are saying the Fed may not cut rates again at all in 2025.

 

[bigdog]

ASX 200 expected to sink​

The Australian share market looks set to sink on Monday following a selloff on Wall Street on Friday.

According to the latest SPI futures, the ASX 200 is expected to open the day 71 points or 0.85% lower.

Wall Street recoils after good news on the economy raises inflation worries

U.S. stocks fell Friday on worries that good news on the job market may be too good and prove to be bad for Wall Street by keeping inflation and interest rates high.

The S&P 500 tumbled 1.5% to close its fourth losing week in the last five. The Dow Jones Industrial Average dropped 696 points, or 1.6%, and the Nasdaq composite sank 1.6%.

All told, the S&P 500 fell 91.21 points to 5,827.04. The Dow Jones Industrial Average dropped 696.75 to 41,938.45, and the Nasdaq composite sank 317.25 to 19,161.63.

 

[bigdog]

Stock market today: Gains for oil producers and drops for Big Tech leave Wall Street mixed

U.S. stock indexes were split as gains for oil-and-gas producers helped offset drops for Nvidia and other Big Tech companies.

apnews.com

Gains for oil producers and drops for Big Tech leave Wall Street mixed​

By STAN CHOE
Updated 8:22 AM GMT+11, January 14, 2025

NEW YORK (AP) — U.S. stock indexes were split on Monday as gains for oil-and-gas producers helped offset drops for Nvidia and other Big Tech companies.

The S&P 500 rose 0.2% after erasing an earlier fall of 0.9%. The Dow Jones Industrial Average climbed 358 points, or 0.9%, while the weakness for Big Tech stocks dragged the Nasdaq composite to a loss of 0.4%.

Stocks have been under pressure the last month, and the S&P 500 is coming off its fourth losing week in the last five as traders cull expectations for how much relief the Federal Reserve may deliver this year through lower interest rates.

Such cuts would give the economy a boost, and the U.S. stock market ran to repeated records last year on the assumption that more are coming after the Fed began lowering rates in September. But inflation has remained above the Fed’s 2% target, and recent reports have suggested a still-solid U.S. economy doesn’t need much help. Questions are growing about whether the Fed will deliver even a single cut in 2025.

High rates put downward pressure on prices for all kinds of investments, and those seen as expensive can feel the stiffest punches. Nvidia fell 2% and was the heaviest weight on the S&P 500, though that represents just a smidgen of its huge gains made in recent years. The chip company’s stock had nearly quintupled over the last three years amid the frenzy around artificial-intelligence technology.

Apple’s 1% slip and Meta Platforms’ fall of 1.2% were also among the heaviest weights on the market. Because they’re two of the largest companies on Wall Street, their moves pack more punch on the S&P 500 than other stocks.

Moderna tumbled 16.8% for the largest loss in the S&P 500 after giving a forecast for revenue this upcoming year that fell short of analysts’ expectations. The vaccine maker, which is seeing a slowdown in COVID-related sales, is accelerating a cost-cutting program.

Macy’s fell 8.1% after saying it will likely report revenue for the last three months of 2024 that’s at or slightly below the low end of the forecasted range it had earlier given. It’s a potentially discouraging signal about spending during the holiday season after strong spending by U.S. households has helped keep the economy out of a recession.

Edison International fell another 11.9% as wildfires continue to burn in the territory of its Southern California Edison utility. The utility has said fire agencies are investigating whether its equipment was involved in the ignition of the Hurst fire.

On the winning side of Wall Street were oil-and-gas companies after the price of oil climbed. A barrel of benchmark U.S. crude rose 2.9% to $78.82, while Brent crude climbed 1.6% to $81.01. The Biden administration said Friday it’s expanding sanctions against Russia’s energy industry.

Exxon Mobil gained 2.6%, and Valero Energy jumped 4.9%.

Shares of U.S. Steel rallied 6.1% after the Biden administration pushed back to June the deadline it imposed for the Pittsburgh-based company to unwind its proposed acquisition by Japan’s Nippon Steel.

Intra-Cellular Therapies soared 34.1% after Johnson & Johnson said it would buy the biopharmaceutical company and its treatment for bipolar I and II depression for $132 per share in cash. Johnson & Johnson rose 1.7%.

All told, the S&P 500 added 9.18 points to 5,836.22. The Dow Jones Industrial Average rose 358.67 to 42,297.12, and the Nasdaq composite slipped 73.53 to 19,088.10.

In the bond market, which has been dictating much of Wall Street’s action lately, Treasury yields ticked higher.

The yield on the 10-year Treasury rose to 4.78% from 4.76% late Friday. It’s been climbing relentlessly over the last month, and it was below 3.65% just in September.

The strong reports on the U.S. economy have helped push yields higher. So have worries that tariffs and other policies possibly coming from President-elect Donald Trump could boost inflation along with economic growth.

A report coming on Wednesday could offer the next spark for the bond market. That’s when the government will deliver the latest monthly update on inflation that U.S. consumers are feeling. Economists expect it to show inflation accelerated a touch to 2.8% in December from 2.7% in November.

“Rates remain the most important variable for equity market direction,” according to Michael Wilson and other strategists at Morgan Stanley.

Outside of the inflation data and its effect on interest rates, this upcoming week will also feature earnings reports from Bank of America, JPMorgan Chase and other big banks. They’re helping to kick off the start of earnings reporting season.

If Treasury yields continue to rise, either stock prices need to fall or companies need to produce bigger profit growth to make up for it.

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

Stocks sank 1% in Hong Kong and 0.2% in Shanghai, even though China reported its exports grew at a faster pace in December than expected. Factories were rushing to fill orders to beat higher tariffs that Trump has threatened to impose once he takes office.

ASX 200 expected to rebound​

The Australian share market is expected to rebound slightly on Tuesday after a mixed start to the week in the United States.

According to the latest SPI futures, the ASX 200 is poised to open the day 37 points or 0.4% higher.

U.S. stock indexes were split on Monday as gains for oil-and-gas producers helped offset drops for Nvidia and other Big Tech companies.

The S&P 500 rose 0.2% after erasing an earlier fall of 0.9%. The Dow Jones Industrial Average climbed 358 points, or 0.9%, while the weakness for Big Tech stocks dragged the Nasdaq composite to a loss of 0.4%.

All told, the S&P 500 added 9.18 points to 5,836.22. The Dow Jones Industrial Average rose 358.67 to 42,297.12, and the Nasdaq composite slipped 73.53 to 19,088.10.

 

[bigdog]

Stock market today: Wall Street mostly rises after encouraging inflation data despite Lilly's drag

Most U.S. stocks rose following an encouraging update on inflation, but drops for Eli Lilly and some other influential stocks kept indexes in check.

apnews.com

Wall Street mostly rises after encouraging inflation data despite Lilly’s drag​

By STAN CHOE
Updated 8:18 AM GMT+11, January 15, 2025

NEW YORK (AP) — Most U.S. stocks rose Tuesday following an encouraging update on inflation, though drops for Eli Lilly and other influential stocks kept indexes in check.

The S&P 500 rose 0.1% as three out of every four stocks in the index climbed. The Dow Jones Industrial Average added 221 points, or 0.5%, and the Nasdaq composite slipped 0.2%.

Stocks got a boost from a report showing inflation at the U.S. wholesale level wasn’t as high last month as economists expected. It’s an encouraging signal ahead of a report coming Wednesday, which will show how much inflation U.S. consumers faced at gasoline pumps, grocery registers and auto lots in December.

Stubbornly high readings on inflation and a run of better-than-expected updates on the U.S. economy have sent Wall Street into a weekslong rut, pulling it further from the dozens of all-time highs set last year. The fear is that all the strong data will convince the Federal Reserve to deliver less relief this year through lower interest rates.

The Fed has already hinted it’s likely to cut rates just two times in 2025, down from an earlier projection of four. Speculation is growing about whether the Fed may cut rates zero times this year.

Such questions have sent Treasury yields sharply higher in the bond market, which cranks up the pressure on the stock market. Yields slowed their ascent following the update on wholesale inflation.

The yield on the 10-year Treasury held at 4.78%, where it was late Monday. It was below 3.65% in September.

The two-year Treasury yield, which more closely tracks expectations for Fed action, eased to 4.36% from 4.39%.

On Wall Street, KB Home rose 4.8% after delivering a better profit for its latest quarter than analysts expected. The rise in Treasury yields has made mortgages more expensive, but CEO Jeffrey Mezger said buyers nevertheless “continued to demonstrate a desire for homeownership and housing market conditions improved relative to last year.”

Mezger said faster build times helped the company deliver more homes in the three months through November.

H&E Equipment Services more than doubled to top $90 after United Rentals said it will buy its smaller rival for $92 per share in cash. The deal values H&E, which rents aerial work platforms, earthmoving equipment and other products, at $4.8 billion, including roughly $1.4 billion of net debt.

United Rentals rose 5.9%.

Indexes drifted between gains and losses through the day in large part due to drops for several Big Tech stocks. Nvidia fell 1.1% and was the second-heaviest weight on the S&P 500.

The only stock to drag more on the market was Eli Lilly, which fell 6.6% after saying it expects to report weaker revenue for the last three months of 2024 than previously forecast.

CEO David Ricks said last quarter’s 45% growth in Lilly’s revenue for its Mounjaro diabetes treatment, Zepbound obesity injections and other products in the incretin market wasn’t as big as expected.

Also on the losing end of the market was Signet Jewelers, which tumbled 21.7%. The diamond seller said its sales in the peak shopping days leading up to Christmas this past holiday season were below its forecasts. Shoppers were focusing on lower-priced fashion gifts “even more than anticipated in a continued competitive environment,” said Joan Hilson, chief financial and operating officer.

Several of the nation’s biggest financial companies will report their latest results on Wednesday, including JPMorgan Chase and Wells Fargo, as earnings reporting season gears up. Such reports are always under the spotlight, but companies may be under more pressure to impress this time around.

If Treasury yields continue to rise, either stock prices need to fall or companies need to produce bigger profit growth to make up for it.

All told Tuesday, the S&P 500 rose 6.69 points to 5,842.91. The Dow Jones Industrial Average gained 221.16 to 42,518.28, and the Nasdaq composite slipped 43.71 to 19,044.39.

In stock markets abroad, indexes were higher across much of Europe and Asia with a few exceptions.

Japan’s Nikkei 225 index fell 1.8% following a holiday on Monday, but indexes were much stronger in China where stocks rose 1.8% in Hong Kong and 2.5% in Shanghai.

Crude oil prices fell to give back some of their strong gains in recent weeks, which had also been cranking up the pressure on inflation.

Benchmark U.S. crude eased 1.7% to $77.50 per barrel. Brent crude, the international standard, fell 1.3% to $79.92 per barrel.

ASX 200 expected to edge higher​

The Australian share market looks set to edge higher on Wednesday following a relatively positive night of trade on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 6 points or 0.1% higher this morning.

Most U.S. stocks rose Tuesday following an encouraging update on inflation, though drops for Eli Lilly and other influential stocks kept indexes in check.

The S&P 500 rose 0.1% as three out of every four stocks in the index climbed. The Dow Jones Industrial Average added 221 points, or 0.5%, and the Nasdaq composite slipped 0.2%.

All told Tuesday, the S&P 500 rose 6.69 points to 5,842.91. The Dow Jones Industrial Average gained 221.16 to 42,518.28, and the Nasdaq composite slipped 43.71 to 19,044.39.

 

[bigdog]

Stock market today: Wall Street rips higher after inflation data and strong bank profits

U.S. stocks ripped higher after an encouraging update on U.S. inflation. The S&P 500 jumped 1.8% for its best day in two months Wednesday.

apnews.com

Wall Street rips higher after inflation data and strong bank profits​

By STAN CHOE
Updated 8:20 AM GMT+11, January 16, 2025

NEW YORK (AP) — U.S. stocks ripped higher Wednesday following a shot of adrenaline from an encouraging update on U.S. inflation. Strong profit reports from Wells Fargo and other big U.S. banks also helped launch indexes to their best day in two months.

The S&P 500 jumped 1.8%. The Dow Jones Industrial Average rallied 703 points, or 1.7%, and the Nasdaq composite leaped 2.5%.

Treasury yields also eased in the bond market following the update on how much more U.S. households had to pay in December for eggs, gasoline, housing and other costs of living. The report said overall inflation accelerated to 2.9% from 2.7% in November.

While no one wants higher inflation, the numbers were more encouraging underneath the surface. After ignoring prices for food and energy, which can zigzag sharply from month to month, underlying inflation trends slowed to 3.2% in December. Economists had thought it would remain at 3.3% for a fourth straight month, according to FactSet.

The Federal Reserve pays more attention to that underlying number than the overall figure, and it’s particularly welcome following worries that improvements in inflation have halted and that it will be tough to get all the way down to the Fed’s 2% target.

Few traders expect Wednesday’s data to convince the Fed to cut its main interest rate at its meeting later this month, as it’s done at three straight meetings since September. But economists and analysts say it could open the door for cuts later in the year, maybe even in March, if more data comes in to show that upward pressure on inflation is abating.

“Perhaps the key takeaway is that markets are likely to be whipsawed over the next few data releases as investors seek a narrative that they can be comfortable with for more than just a few days at a time,” said Seema Shah, chief global strategist at Principal Asset Management.

Wall Street has been lurching down and up for weeks as traders tear up their forecasts for what the Fed will do with interest rates in 2025. A further easing would boost the U.S. economy and prices for investments, but it could also give inflation more fuel.

Traders were ebullient last year about the possibility of a string of cuts to rates, when they sent stocks to dozens of all-time highs, only to rein in their expectations more recently. The Fed itself has indicated it may cut rates only two times this year instead of the four it had earlier projected, and some traders have even considered the possibility of future hikes to rates.

Wednesday’s update quashed speculation about hikes in the near term, and Treasury yields eased in the bond market on growing hopes for coming cuts. The yield on the 10-year Treasury dropped back to 4.65% from 4.79% late Tuesday, which is a considerable move. It had largely been screaming higher since September, when it was below 3.65%.

The two-year Treasury yield, which more closely tracks expectations for the Fed’s upcoming actions, fell to 4.26% from 4.37%.

On Wall Street, bank stocks helped lead the way after several reported stronger profits for the last three months of 2024 than analysts expected.

Wells Fargo jumped 6.7%, Citigroup rallied 6.5% and Goldman Sachs gained 6%. They’re among the first big U.S. companies to report their results for the end of 2024, and even more focus may be on them than usual.

When Treasury yields are climbing and bonds are paying more in interest, it cranks up the pressure on stock prices by peeling investors away from stocks and into bonds. To make up for it, stock prices typically either have to fall or corporate profits have to rise more strongly.

Stocks of companies that would get a big benefit from lower interest rates were also toward the front of the market.

Builders FirstSource, a supplier of countertops and other building materials, rose 4.7%, for example. It and other housing-related companies would get a boost from easier mortgage rates.

All told, the S&P 500 rose 107.00 points to 5,949.91. The Dow Jones Industrial Average gained 703.27 to 43,221.55, and the Nasdaq composite jumped 466.84 to 19,511.23.

The encouraging U.S. inflation data also helped to perk up stock indexes abroad by lowering the pressure on the global bond market.

The FTSE 100 in London rallied 1.2%. U.K. markets have been under pressure because of a jump in bond yields amid worries about a sluggish economy and the country’s finances.

Indexes also rose 0.7% in France and 1.5% in Germany. They were more subdued in Asia, where trading closed before the release of the U.S. inflation data.

South Korea’s Kospi was nearly unchanged after law enforcement officials detained impeached President Yoon Suk Yeol on Wednesday in connection with his failed declaration of martial law last month.

ASX 200 expected to storm higher​

The Australian share market looks set to jump on Thursday following a strong night of trade on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 104 point or 1.4% higher this morning.

U.S. stocks ripped higher Wednesday following a shot of adrenaline from an encouraging update on U.S. inflation. Strong profit reports from Wells Fargo and other big U.S. banks also helped launch indexes to their best day in two months.

The S&P 500 jumped 1.8%. The Dow Jones Industrial Average rallied 703 points, or 1.7%, and the Nasdaq composite leaped 2.5%.

All told, the S&P 500 rose 107.00 points to 5,949.91. The Dow Jones Industrial Average gained 703.27 to 43,221.55, and the Nasdaq composite jumped 466.84 to 19,511.23.