Tag: Dow Jones

Wall Street rises as Syria fears ease; healthcare stocks jump

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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US stocks rose on Monday, boosted by healthcare stocks and on easing fears that the recent US-led missile attack on Syria would escalate into a broader conflict.

Merck rose 2.5% after the company presented positive data on its cancer drug Keytruda, driving a 0.7% gain in the healthcare index.

The market appeared less concerned about possible retaliation from the air strikes, which marked the biggest intervention by Western countries against Syrian President Bashar al-Assad and his ally Russia.

“The action was well-received … and that’s giving a chance for investors to focus on macro news and earnings,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

Attention turned to what is expected to be a robust first-quarter earnings season.

Shares of JB Hunt Transport Services jumped 7% after the trucking company’s profit topped estimates.

But Bank of America edged lower despite reporting a better-than-expected increase in quarterly profit.

“People are optimistic in the earnings season … but there are a lot of forces working in the market – technicals, earnings and geopolitics, which is the biggest wild card,” said J.J. Feldman, portfolio manager at Los Angeles-based Miracle Mile Advisors.

At 11:10 a.m. ET, the Dow Jones Industrial Average was up 0.82% at 24,560.96. The S&P 500 gained 0.65% to 2,673.6 and the Nasdaq Composite rose 0.4% at 7,135.34.

All the 11 major S&P sectors were higher, with a 1.2% gain in the utilities index leading the gainers.

Shares of optical components makers Acacia Communications, Oclaro, Lumentum and Finisar took a beating after Reuters reported that the US government was banning American companies from selling components to Chinese telecom equipment maker ZTE Corp.

Netflix fell more than 2%. The company is expected to reports results after the closing bell on Monday.

Advancing issues outnumbered decliners on the NYSE for a 2.90-to-1 ratio. On the Nasdaq, a 1.71-to-1 ratio favoured advancers.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Global stocks bounce as Trump changes tack on Syria, earnings hopes

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Global stocks recovered to three-week highs on Friday as anticipated strong earnings season took centre stage after U.S. President Donald Trump backtracked on his suggestion of an imminent missile attack on Syria.

MSCI’s broadest index of Asia-Pacific shares outside Japan ticked up 0.1% while Japan’s Nikkei gained 0.8%.

MSCI’s broadest gauge of the world’s stock markets also edged up 0.1% after hitting a three-week high on Thursday.

In New York, the S&P 500 gained 0.83%, led by a 1.83% gain in financials after strong quarterly results from BlackRock Inc boosted optimism for corporate earnings.

The earnings season begins in earnest on Friday with reports from JPMorgan Chase & Co, Citigroup Inc and Wells Fargo & Co.

Analysts expect quarterly profit for S&P 500 companies to rise 18.4% from a year ago, in what would be the biggest gain in seven years, according to Thomson Reuters I/B/E/S.

The mood improved also after Trump tweeted an attack on Syria “could be very soon or not so soon at all,” allaying fears of an immediate military action that investors fear could lead to wider conflict between Washington and Moscow.

In another change of tack, Trump has asked his trade advisers to look at re-joining the Trans Pacific Partnership, a multinational trade pact he withdrew the United States from early last year.

“Markets have been pushed around by Trump. His modus operandi seems to do anything that seems to be good for his re-election. If protectionism doesn’t work, he may switch to international trade,” said Hiroshi Watanabe, economist at Sony Financial Holdings.

“Markets are still not yet convinced yet if the U.S. is really re-joining the TPP. But if it does, it’s very positive for the global economy and stock markets will like it,” he added.

The improved sentiment drove up U.S. bond yields. The 10-year U.S. Treasuries yield rose to 2.843%, its highest level since March 27.

In the currency market, the dollar rose to 107.27 yen, edging near a five-week high of 107.49 touched on Apr. 5.

The yen has become litmus test for risk sentiment, sought when investors turn risk averse because Japan’s hefty current surplus gives protection to any capital outflows deficit-running countries are vulnerable to.

The euro eased to $1.2327, though on the week it has kept gains of 0.4%.

The Hong Kong dollar stood at 7.8498 to the dollar, near the lower end of its 7.75-7.85 trading band, a day after Hong Kong’s de facto central bank intervened to support the currency for the first time since 2015.

The Singapore dollar gained slightly after Singapore’s central bank tightened monetary policy for the first time in six years as expected.

Oil prices remained close to highs last reached in late 2014 on tensions in the oil-rich Middle East and shrinking global oil inventories.

Brent crude futures traded at $71.90 a barrel, a tad below Thursday close but not far from Wednesday’s high of $73.09. U.S. WTI crude futures stood at $66.87.

Elsewhere, bitcoin fetched $7,968.5 after 14.2% gains on Thursday, its biggest gain in four months.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US stock indexes rally as China’s president eases trade fears

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Stocks jumped Tuesday after Chinese President Xi Jinping said Beijing would reduce tariffs on imported cars and improve intellectual property protection, steps that could ease trade tensions. Facebook climbed as CEO Mark Zuckerberg testified before the Senate about the company’s privacy scandal.

Xi’s proposals could help the U.S. and China resolve their differences and avert a trade dispute that slows down global commerce. The dialing back of tensions helped send the price of crude oil up 3.3 percent.

“The market’s increasing expectation is that the two sides will sit down now,” said Paul Christopher, head of global market strategy for Wells Fargo Investment Institute, although stocks could bounce around as those negotiations proceed. “There’s still a lot at stake because you have a global supply chain that could be interrupted because of tariffs.”

Facebook, Twitter and Snap rallied as Senators questioned Mark Zuckerberg about the Cambridge Analytica privacy scandal that has engulfed the company over the last four weeks. Technology companies have stumbled as investors wondered if the government will implement tighter regulations on technology companies, and those worries eased Tuesday. Zuckerberg will testify before the House of Representatives Wednesday.

The S&P 500 index surged 43.71 points, or 1.7 percent, to 2,656.87. The Dow gained 428.90 points, or 1.8 percent, to 24,408. Shortly before noon it rose as much as 532 points. The Nasdaq composite added 143.96 points, or 2.1 percent, to 7,094.30. The Russell 2000 index of smaller-company stocks advanced 28.97 points, or 1.9 percent, to 1,543.43.

Indexes overseas also climbed. Germany’s DAX jumped 1.1 percent and the British FTSE 100 gained 1 percent. The French CAC 40 gained 0.8 percent. Japan’s benchmark Nikkei 225 gained 0.5 percent and South Korea’s Kospi added 0.3 percent while Hong Kong’s Hang Seng added 1.7 percent.

Speaking at a business conference, Xi promised changes in some areas that the U.S. has identified as priorities. He didn’t address other thorny topics including requirements for foreign companies to give technology to potential local competitors.

General Motors rose 3.3 percent to $39.07 and Tesla climbed 5.2 percent to $304.70.

Technology companies have made some of the biggest swings on the market during the trade spat. If trade conditions get worse, they might face higher costs as well as lower sales. They’ve also done better than most other parts of the market for more than a year, and companies like Apple, Microsoft and Google’s parent Alphabet have made up an outsize portion of the market’s gains.

Apple jumped 1.9 percent to $173.25 and Microsoft rose 2.3 percent to $92.88.

So far the U.S. has proposed tariffs on $50 billion worth of products made in China, and China has said it could put tariffs on an equivalent amount of goods imported from the U.S. Also, President Donald Trump has directed his trade representative to look into targeting another $100 billion in Chinese goods.

Christopher, of Wells Fargo, said the U.S. still has a lot of leverage because it has mostly targeted products that are only partly assembled in China.

“The U.S., in the next round of tariffs, could start targeting goods that the Chinese do mostly produce themselves,” he said. That would cause China more economic pain.

Facebook CEO Mark Zuckerberg appeared before two Senate committees that comprised almost half the Senate and was questioned about the Cambridge Analytica scandal. As many as 87 million users were affected, and Facebook started notifying them this week.

Facebook rallied 4.5 percent to $165.04 and made big gains during Zuckerberg’s testimony. Twitter jumped 5.3 percent to $29.53 and Snap gained 2.3 percent to $14.48. While Tuesday was the best day for Facebook stock in two years, it is down 11 percent since the scandal emerged in March.

Benchmark U.S. crude rose 3.3 percent to $65.51 a barrel in New York. Brent crude, used to price international oils, added 3.5 percent to $71.04 a barrel in London. Oil prices have bounced up and down recently as investors wonder if the trade dispute will hamper global economic growth.

Exxon Mobil added 2.9 percent to $77.07 and Marathon Oil jumped 4.3 percent to $17.06.

VeriFone Systems surged after it agreed to be bought by Francisco Partners and British Columbia Investment Group. The investment group will pay $23.04 a share, or $2.54 billion, for VeriFone, which makes terminals for electronic payments. VeriFone stock climbed 51.9 percent to $22.78.

Bond prices turned lower. The yield on the 10-year Treasury note rose to 2.80 percent from 2.78 percent.

In other energy trading, wholesale gasoline rose 2.9 percent to $2.04 a gallon. Heating oil added 3.4 percent to $2.06 a gallon. Natural gas lost 1.4 percent to $2.66 per 1,000 cubic feet.

Gold rose 0.4 percent to $1,345.90 an ounce. Silver added 0.4 percent to $16.60 an ounce. Copper climbed 1.9 percent to $3.14 a pound.

The dollar climbed to 107.17 yen from 106.78 yen. The euro rose to $1.2361 from $1.2322.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

World View: All eyes will be on US non-farm payroll data

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Overnight the US markets did quite well. We saw good bounce on Facebook, Netflix as well as Amazon.

However, Dow futures is down more than 200 points because US President Donald Trump is considering USD 100 billion in terms of additional tariffs against China.

Asian markets are more or less sideways this morning.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US stocks surge as market escapes early plunge on trade fears

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

After an early jolt, stocks rallied and finished higher Wednesday as investors bet that back-and-forth tariff threats between the U.S. and China won’t blossom into a bigger dispute that damages global commerce.

The Dow Jones industrial average plunged 501 points after the opening bell but made it all back, and more. Household goods makers, retailers and home builders led the way while technology companies reversed some early losses. But two major targets of China’s possible tariffs, aerospace company Boeing and farm equipment maker Deere, finished lower.

The early declines followed an announcement by the Chinese government that it plans to impose tariffs of 25% on a list of U.S. goods worth $50 billion, including soybeans and aircraft. The U.S. plans to place tariffs on a similar amount of Chinese goods, including industrial robots and telecom gear, subject to potential tariffs to protest Beijing’s alleged theft of U.S. technology.

But investors relaxed as both sides emphasized a willingness to talk. President Donald Trump’s top economic adviser, Larry Kudlow, suggested the U.S. tariffs won’t be implemented if China lowers barriers to trade. Others noted the two countries have too much to lose from a trade war.

“The most likely outcome is smoke, but no fire,” said Bill Adams, senior international economist at PNC Financial. “The amount that both countries have invested in bilateral trade cooperation and economic cooperation is so significant that the costs of going back would be very painful, and more than either country would want to bear.”

U.S. trade policy has loomed over the markets since early March. Over the last five weeks stocks have plunged numerous times as investors reacted to tariff developments with shock and concern that an increase in protectionism will hurt international trade and company profits. But often, investors have caught their breath and decided that a full-blown trade war is unlikely, resulting in sharp recoveries.

On Wednesday, both of those things appeared to happen in the same day.

The Dow Jones industrial average advanced 230.94 points, or 1%, to 24,264.30, after a swing of more than 700 points. The S&P 500 index climbed 30.24 points, or 1.2%, to 2,644.69. The Nasdaq composite rose 100.83 points, or 1.5%, to 7,042.11. The Russell 2000 index of smaller-company stocks gained 19.51 points, or 1.3%, to 1,531.66.

Boeing, which delivered one-fourth of all its planes to China last year, fell as much as 5.7% early on and finished with a loss of $3.38, or 1%, at $327.44. The Chicago-based company said it is confident the two sides will continue to talk.

“While both governments have outlined positions that could do harm to the global aerospace industry, neither has yet imposed these drastic measures,” Boeing said.

Adams, of PNC Financial, said the tariffs would be especially painful for companies in agriculture: machinery makers in the U.S. would pay more for imported components, and they wouldn’t sell as much food in China because their products would be more expensive. He said that will stir up political pressure against the trade sanctions.

Farm equipment maker Deere lost $4.47, or 2.9%, to $148.57, after an early drop of 6.2%. Futures for Soybeans, a big U.S. export to China, fell 2.2% on the CBOT.

However Adams said that there was good news for food producers, as the Chinese government proposed duties on imported beef, but not pork or chicken. Hormel jumped $1.65, or 4.8%, to $35.87.

European stocks fell. Germany’s DAX lost 0.4% while the CAC 40 in France dipped 0.2 percent. The FTSE 100 in Britain gained 0.1%.

Most Asian indexes closed before China announced its tariff plan, but Hong Kong’s Hang Seng was still trading and slumped 2.2%.

The biggest worry for investors is that an escalating trade war will derail a global economy that is largely growing in unison. The global economy is expected to grow 3.9 percent this year, which would be its strongest showing in seven years, according to the International Monetary Fund.

Elsewhere, homebuilders rose following strong quarterly report from Lennar, which gained $5.73, or 10%, to $62.82.

Tech stocks have added to the recent volatility, mostly due to controversies surrounding technology companies like Facebook. On Wednesday, Facebook closed with a small decline, but other big tech names such as Apple and Microsoft closed higher.

After a big early loss, U.S. crude dipped 14 cents to $63.37 a barrel in New York while Brent crude, used to price international oils, fell 10 cents to $68.02 a barrel in London.

Wholesale gasoline stayed at $1.98 a gallon. Heating oil lost 2 cents to $1.98 a gallon. Natural gas rose 2 cents to $2.72 per 1,000 cubic feet.

Bond prices turned lower. The yield on the 10-year Treasury note rose to 2.80 percent from 2.77%. Gold prices jumped as much as 0.9% early on, but finished up just $2.90, or 0.2%, at $1,340.20 an ounce. Silver fell 14 cents to $16.25 an ounce and Copper lost 5 cents to $3.01 a pound.

After an early loss, the dollar rose to 106.74 yen from 106.61 yen. The euro rose to $1.2280 from $1.2267.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US stock indexes end choppy day of trading slightly lower

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

US stock indexes struggled to find direction Wednesday, ending the choppy day of trading with a loss for the second straight day.

The latest market decline was modest compared with the previous day’s steep drop, but both were largely driven by a sell-off in technology stocks.

Losses in Amazon, Netflix and other consumer-focused companies also weighed on the market Wednesday. Energy stocks fell in tandem with crude oil prices.

Those losses outweighed gains by drugstore chains, healthcare companies and other stocks.

Despite a crop of strong company earnings and market-boosting corporate deal news, traders continued to wrestle with the potential implications of negative headlines swirling around several big-name stocks, including Amazon, Facebook and Tesla.

“The news continues to be volatile and the markets are just highly sensitive to it in a way that they weren’t sensitive to it last year,” said Tom Martin, senior portfolio manager with Globalt Investments. “We’ve forgotten that this is more like the way things are, that markets do react to news that comes in.”

The benchmark S&P 500 index lost 7.62 points, or 0.3%, at 2,605. The Dow Jones industrial average fell 9.29 points, or 0.04 %, to 23,848.42. The Nasdaq composite slid 59.58 points, or 0.8%, to 6,949.23. The Russell 2000 index of smaller-company stocks lost 0.54 points, or 0.04%, to 1,513.03. More stocks rose than fell on the New York Stock Exchange.

Bond prices were little changed. The yield on the 10-year Treasury held at 2.78%.

The major stock indexes wobbled between gains and losses for much of the day as investors weighed the latest developments with some of the market’s biggest names.

Facebook, which has taken a beating in recent days over privacy concerns, reflected the broader movement of the market, dipping into the red at times before eking out a small gain. The social media giant said early Wednesday it would give its privacy tools a makeover. The move is a response to criticisms over its data practices and the prospect of tighter European regulations in the coming months. The stock gained 81 cents, or 0.5%, to $153.03.

Software company Red Hat was the technology sector’s biggest decliner, sliding $8.22, or 5.3%, to $146.20.

“Tech has had such a tremendous run-up and has outperformed some of the other sectors,” said Erik Davidson, chief investment officer for Wells Fargo Private Bank. “There may be other areas now that are more attractive, and we’ve seen some strength recently in some of the more defensive-oriented sectors.”

Investors also fretted about Amazon after Axios, citing anonymous sources, reported Wednesday that President Donald Trump has wondered aloud if there was a way to “go after” Amazon with antitrust or competition law.

Amazon has long been a target of Trump, who has tweeted in the past that the online retailer didn’t pay enough taxes or needed to pay the U.S. post office more for handling shipments.

Amazon CEO Jeff Bezos also personally owns The Washington Post, which Trump has labeled “fake news” when unfavorable stories are written about him or his administration. Shares in the e-commerce giant fell $65.63, or 4.4%, to $1,431.42.

Netflix also declined, shedding $14.92, or 5%, to $285.77.

Tesla tumbled 7.7% after Moody’s downgraded the electric car maker’s credit rating. The move piles more pain on Tesla, whose stock has been pummeled by the news that authorities will investigate a fatal crash that involved a Tesla electric SUV equipped with a semi-autonomous control system. The stock lost $21.40 to $257.78.

Investors welcomed strong quarterly report cards from Walgreens Boots Alliance, Lululemon Athletica and RH, the operator of Restoration Hardware.

Walgreens gained 2.5% after the largest US drugstore chain reported quarterly earnings and revenue that came in ahead of analysts’ forecasts. The stock rose $1.63 to $67.59. Investors also bid up shares in CVS Health, which climbed $2.11, or 3.5%, to $62.71.

Lululemon jumped 9.2% after the seller of premium yoga wear reported strong results for its fourth quarter and also released an upbeat outlook. The stock gained $7.25 to $85.96.

Shares in RH vaulted 22.5% after the home furnishings retailer reported earnings that easily beat analysts’ forecasts. The stock rose $16.93 to $92.24.

Irish drugmaker Shire Plc jumped 12.2% after Japanese rival Takeda said it’s considering a takeover offer. Takeda said that buying Shire would enhance its R&D and its reach into the US Shire’s US-listed shares climbed $15.66 to $144.53.

Benchmark US crude lost 87 cents, or 1.3%, to settle at $64.38 per barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, fell 58 cents, or 0.8%, to $69.53 per barrel in London.

The slide in oil prices weighed on energy sector stocks. Occidental Petroleum gave up $2.67, or 4.1%, to $63.15.

In other energy futures trading, heating oil dropped 1 cent to $2.01 a gallon. Wholesale gasoline was little changed at $2.01 a gallon. Natural gas dropped 2 cents to $2.70 per 1,000 cubic feet.

The dollar rose to 106.88 yen from 105.54 yen Tuesday. The euro fell to $1.2313 from $1.2402.

Gold fell $17.80, or 1.3%, to $1,324.20 an ounce. Silver dropped 29 cents to $16.25 an ounce. Copper was little changed at $3 a pound.

Major indexes in Europe finished mostly higher. Germany’s DAX lost 0.3%, while France’s CAC 40 gained 0.3% and Britain’s FTSE 100 rose 0.6%. Indexes in Asia finished lower. Japan’s Nikkei 225 sank 1.3% and South Korea’s Kospi slid 1.3%. Hong Kong’s Hang Seng index slumped 2.5%. Stocks in Taiwan, Singapore and other Southeast Asian countries also fell.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow