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Stocks rise as traders digest mixed November jobs report

Stocks rise as traders digest mixed November jobs report

Stocks sank on Friday to end the week lower, as investors digested updates on the Omicron variant alongside the Labor Department’s November jobs report, which came in mixed compared to Wall Street’s elevated expectations. 

The S&P 500 posted a weekly loss of 1.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} since last Friday, sliding in volatile trading after the discovery of the Omicron variant. The Nasdaq underperformed with a weekly loss of 2.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Treasury yields also dipped as investors bought safe haven assets, and the yield on the benchmark 10-year note slid below 1.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. 

Developments around the Omicron variant remained a focal point. So far at least five U.S. states have reported at least one case of the variant. The variant has also been found in more than three dozen countries globally, CNBC reported, citing the World Health Organization. The report also said the WHO has so far seen “a suggestion that there is increased transmissibility” of the Omicron variant, while noting it is still too soon to determine whether it is more or less transmissible than the Delta variant, or whether it causes more severe disease.  

The market moves Friday also came following the release of the Labor Department’s November jobs report, which showed a disappointing rate of hiring for the month even as the unemployment rate fell to a fresh pandemic-era low. Payroll gains came in at 210,000, or less than half the 550,000 consensus economists were expecting. The jobless rate fell to 4.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, dipping more than anticipated from October’s 4.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. 

The moves on Friday came in contrast to a rally on Thursday, when market participants initially shrugged off the discovery of multiple cases in the U.S.

“The markets … have been pricing in, really, a worst-case scenario,” Jim Smiegiel, SEI chief investment officer, told Yahoo Finance Live. 

“I think the market is now switching gears a little bit and perhaps lessening the intensity on the potential for negative outcomes,” he added. “The big issue still remains more about the world government’s reaction to the variant and what that means from a lockdown perspective. And that’s what the market is still kind of struggling with at this stage.” 

Others have struck an even more optimistic tone, suggesting the economic impact of the Omicron variant will ultimately prove less drastic than initially feared. 

“If you look back at Delta, there really wasn’t a meaningful impact in terms of actual consumption … maybe we saw a little bit of a shift away from services in the early stages of the reopen back towards goods, but overall consumption held up just fine,” Garrett Melson, Natixis Investment Managers Solutions portfolio strategist, told Yahoo Finance Live on Thursday.

“And on the capex front, we still see signs that companies are saying they’re going to invest in their businesses and they’re doing just that,” Melson added. “Lockdowns are certainly not happening here in the U.S. There’s no appetite from the government and certainly no appetite from consumers.” 

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4:05 p.m. ET: Stocks end session, week sharply lower

Here’s where U.S. equities ended Friday’s session:

  • S&P 500 (^GSPC): -38.67 (-0.84{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,538.43

  • Dow (^DJI): -59.71 (-0.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,580.08

  • Nasdaq (^IXIC): -295.85 (-1.92{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,085.47

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3:36 p.m. ET: What economists are saying about the November jobs report 

While the headline payrolls number in the November jobs report came in well short of estimates, many economists highlighted the better-than-expected improvements in other metrics, including the unemployment rate and labor force participation rate. 

Here’s what a number of economists had to say about the report, based on notes and emails sent to Yahoo Finance: 

  • “While November displayed 210,000 jobs gained at the headline level, which some may suggest is a disappointment, when we look at the details of the report, we see some significant strengths. Indeed, the six-month average for non-seasonally adjusted private payroll gains is more than 700,000 jobs/month, an impressive number by any standard … The unemployment rate declined impressively from 4.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in October to 4.24{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in November, even as the labor force grew strongly, an indication of labor market strength.” – Rick Rieder BlackRock’s chief investment officer of global fixed income

  • “Arguably the biggest surprise in the November employment report was the unexpected 0.4 [percentage point] decline in the unemployment rate to 4.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} … slowing job gains and sturdy wages are a signal of a tight labor market.” – Joe LaVorgna, Natixis CIB managing director and chief economist of the Americas

  • “Today’s jobs report presents a mixed picture of the labor market recovery as storm clouds gather from a rebounding Delta variant and new variant looms. The divergence between the establishment and household surveys is unusual, but is an important reminder of how difficult it is to measure the labor market in a pandemic.” – Daniel Zhao, Glassdoor senior economist

  • “Overall, while this report is disappointing, it does not change our view that faster tapering will be announced in December, unless the scientific news on the Omicron variant over the next couple weeks is disastrous. The Fed is focused on the inflation overshoot, which will get much worse before it gets better, and officials have made it very clear that they want to take out insurance against the risk that the latest spike does not become embedded.” – Ian Shepherdson, chief economist for Pantheon Macroeconomics

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10:47 a.m. ET: Stocks trade lower as tech lags

The three major stock indexes traded in the red after opening in positive territory, with investors continuing to mull the latest headlines on the Omicron variant and the November jobs report. 

The information technology and consumer discretionary sectors underperformed in the S&P 500, while consumer staples was the only sector in the green. 

Salesforce.com, Boeing and Microsoft lagged in the Dow, contributing to the more than 200-point drop in the index. The Nasdaq dropped more than 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} amid the drawdown in heavily weighted technology names. 

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10:15 a.m. ET: Docusign shares post biggest-ever drop after 3Q billings, guidance miss

Shares of software company Docusign (DOCU) slid on Friday after posting disappointing third-quarter billings results and current-quarter guidance, suggesting business activity was returning to more “normalized” levels after a pandemic-induced surge.

Shares were down more than 40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} as of morning trading. Late Thursday, the e-signature company reported third-quarter billings growth of 28{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, marking a major slowdown from the previous 61{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} growth seen in the second quarter. Billings are a closely watched metric for software companies with recurring revenue subscription models.

“After six quarters of accelerated growth, we saw customers return to more normalized buying patters, resulting in a 28{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} year-over-year billings growth,” Dan Springer, CEO of Docusign, said in the company’s earning’s statement. 

And for the current quarter, Docusign sees revenue coming in between $557 million and $563 million, missing Wall Street’s estimates for $574.2 million. 

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9:31 a.m. ET: Stocks open higher after mixed jobs report

Here’s where markets were trading shortly after the opening bell: 

  • S&P 500 (^GSPC): +23.48 (+0.51{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,600.58

  • Dow (^DJI): +125.06 (+0.36{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,746.85

  • Nasdaq (^IXIC): +89.04 (+0.58{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,466.81

  • Crude (CL=F): +$2.39 (+3.59{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $68.89 a barrel

  • Gold (GC=F): +$8.90 (+0.50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,771.60 per ounce

  • 10-year Treasury (^TNX): +1.1 bps to yield 1.46{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} 

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9:20 a.m. ET: November jobs report comes in mixed, with payrolls disappointing while unemployment rate falls to pandemic-era low 

The November jobs report offered a mixed bag for investors to digest, as non-farm payroll growth came in sharply short of consensus expectations while the unemployment and labor force participation rates topped estimates. 

Non-farm payrolls grew by 210,000 in November following a revised 546,000 in October. This was well short of the 550,000 jobs expected. The unemployment rate improved to 4.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from October’s 4.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, and reached it lowest level since February 2020. 

The labor force participation rate also ticked up slightly more than anticipated in November to reach 61.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, versus the 61.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} consensus economists were expecting and the 61.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} posted in October. The labor force participation rate had been 63.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in February 2020 before the pandemic meaningfully impacted the job market.

Still, as of November, the civilian labor force was still down by about 2.4 million participants, compared to February 2020. 

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7:23 a.m. ET Friday: Stock futures drift sideways ahead of jobs report 

Here were the main moves in markets as the overnight session kicked off: 

  • S&P 500 futures (ES=F): +0.25 points (+0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,576.00

  • Dow futures (YM=F): +11 points (+0.03{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,633.00

  • Nasdaq futures (NQ=F): -1 points (-0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,987.50

  • Crude (CL=F): +$1.89 (+2.84{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $68.39 a barrel

  • Gold (GC=F): +$10.80 (+0.61{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,773.50 per ounce

  • 10-year Treasury (^TNX): -1.8 bps to yield 1.432{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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6:31 p.m. ET Thursday: Stock futures jump ahead of jobs report

Here were the main moves in markets during the overnight session:  

  • S&P 500 futures (ES=F): +11.5 points (+0.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,587.25

  • Dow futures (YM=F): +94 points (+0.27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,716.00

  • Nasdaq futures (NQ=F): +34.50 points (+0.22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,023.00

NEW YORK, NEW YORK - AUGUST 10: People walk by the Wall Street Bull near the New York Stock Exchange (NYSE) on August 10, 2021 in New York City. Markets were up in morning trading as investors look to a rare bipartisan effort in the Senate to pass a massive infrastructure bill that, if passed, will infuse billions into the American economy. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – AUGUST 10: People walk by the Wall Street Bull near the New York Stock Exchange (NYSE) on August 10, 2021 in New York City. Markets were up in morning trading as investors look to a rare bipartisan effort in the Senate to pass a massive infrastructure bill that, if passed, will infuse billions into the American economy. (Photo by Spencer Platt/Getty Images)

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

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Wall Street shrugs off second Omicron case, Dow soars over 600 points

Wall Street shrugs off second Omicron case, Dow soars over 600 points

Stocks rose on Thursday to reverse course after dropping a day earlier, with investors assessing the latest headlines on the Omicron variant and mulling lingering concerns around inflation.

The S&P 500, Dow and Nasdaq advanced and extended gains into afternoon trading. The S&P 500’s 1.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} gain on Thursday was its best since mid-October. 

The moves came in contrast to the three major indexes slide on Wednesday, after the Centers for Disease Control and Protection announced that the first confirmed case of the Omicron variant had been identified in the U.S. The discovery of a second case on Thursday did little to knock equities from their upward path. 

More than two dozen countries globally have so far found at least one confirmed case of the variant, first identified last week. 

The latest updates on the virus front have come on top of traders’ ongoing anxiousness over rising prices. Monetary policymakers have also underscored these lingering inflationary trends, stoking concerns that the Federal Reserve may soon pivot away from its accommodative policies that had helped support markets throughout the pandemic. In the Federal Reserve’s December Beige Book, or collection of anecdotes about economic conditions throughout the Fed districts, the central bank said it observed that, “Prices rose at a moderate to robust pace, with price hikes widespread across sectors of the economy.” 

Federal Reserve Chair Jerome Powell also told lawmakers this week that he thought it would be appropriate for monetary policymakers to consider ending their asset-purchase tapering process sooner than previously telegraphed, or potentially before the middle of next year. That has in turn raised the specter that interest rate hikes could also come more quickly than previously anticipated after the conclusion of the Fed’s tapering process. 

According to a number of strategists, inflation — as well as policymakers’ responses to inflation — will ultimately be one of the driving forces for the market going forward. 

“In the very near-term the biggest threat is the headlines related to the virus,” Niladri Mukherjee, Merrill and Bank of America Private Bank head of CIO portfolio strategy, told Yahoo Finance Live on Wednesday. “But as we go into 2022, inflation is the biggest risk for the markets as a whole. Inflation is looking awfully persistent. Obviously we had 6-7 months of CPI [the Consumer Price Index] printing above 5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, now 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. I wouldn’t be surprised to see even higher prints going into January, February, especially if the variant actually leads to further closures.” 

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4:12 p.m. ET: Wall Street bounces back after Omicron reports, Dow gains 618 points or 1.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Here were the main moves in markets as of 4:12 p.m. ET:

  • S&P 500 (^GSPC): +64.06 (+1.42{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,577.10

  • Dow (^DJI): +617.75 (+1.82{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,639.79

  • Nasdaq (^IXIC): +127.27 (+0.83{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,381.32

  • Crude (CL=F): +$1.29 (+1.97{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $66.86 a barrel

  • Gold (GC=F): -$14.90 (-0.84{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,769.40 per ounce

  • 10-year Treasury (^TNX): +1.4 bps to yield 1.4480{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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3:25 p.m. ET: Crude oil prices rebound after sell-off

U.S. West Texas intermediate crude oil futures jumped on Thursday to recover losses from the past two sessions. The commodity prices settled at $66.50 per barrel, rising nearly 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on the day after hitting a low of $62.43 at session lows. 

The moves coincided with news that OPEC and its allies decided to stick to their previously made plan to increase output by 400,000 barrels per day starting in January. Heading into the OPEC+ meeting, some had expected the cartel would pause its output increases amid uncertainty round energy demand given the threat of the new coronavirus variant. 

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12:03 p.m. ET: Stocks extend gains, led by financials, industrials

The three major indexes added to gains Thursday afternoon, with cyclical sectors leading the way higher after being sold off sharply earlier this week. 

The Dow rallied, gaining more than 600 points, or 1.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Boeing, American Express and Visa outperformed in the 30-stock index, while Apple, Merck and Johnson & Johnson lagged.

The S&P 500 rose by 1.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, with financials, industrials and energy sectors leading the way higher. All 11 major sectors were in the green, though health-care and information technology lagged. 

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9:58 a.m. ET: Shares of ride-hailing company Grab open at $13.06 after SPAC merger

Shares of Singapore-based ride-hailing company Grab opened for public trading at $13.06 apiece in their trading debut on the Nasdaq. 

The company went public following a merger with the special purpose acquisition company (SPAC) Altimeter Growth Corp. Shares of Altimeter had closed Wednesday’s trading day at $11.01 apiece. 

Grab’s “super-app” business model combining both ride-hailing and delivery has paralleled that of Uber. In 2018, Uber also sold its Southeast Asia business to Grab. Both Uber and Grab have also been backed by SoftBank Group. 

Grab in early November reported third-quarter gross merchandise value of $4.0 billion, which rose 32{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over last year and reached an all-time quarterly high. Revenue fell to 9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over last year to $157 million, which Grab attributed to “a decline in mobility due to the severe lockdowns in Vietnam.” The company remains unprofitable, and its net losses were $988 million in the third quarter. 

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9:50 a.m. ET: Lawmakers reach temporary spending deal that would avert shutdown

Lawmakers in the House of Representatives reached a deal and released a bipartisan stopgap spending bill on Thursday that would fund the U.S. government through Feb. 18. 

The House of Representatives is expected to take up the spending bill later on Thursday, and the Senate would then consider the bill shortly thereafter. 

Though some of both House Democratic and Republican lawmakers had spoken favorably of the bill, a group of conservative Republicans have held out over disagreement with the Biden administration’s federal vaccination and testing mandates for some workers. 

If passed before a midnight deadline on Friday, the temporary spending bill would avert a government shutdown.

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9:38 a.m. ET: Stocks open mixed before recovering

Here’s where markets were trading Thursday morning just after the opening bell: 

  • S&P 500 (^GSPC): +4.27 (+0.09{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,517.31

  • Dow (^DJI): +172.78 (+0.51{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,194.82

  • Nasdaq (^IXIC): -35.77 (-0.23{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,219.65

  • Crude (CL=F): -$1.40 (-2.14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $64.17 a barrel

  • Gold (GC=F): -$4.70 (-0.26{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,779.60 per ounce

  • 10-year Treasury (^TNX): -2.2 bps to yield 1.414{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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8:37 a.m. ET: Jobless claims rise slightly after setting 52-year low

New weekly jobless claims rose for the first time in eight weeks for the period ended Nov. 27, but still came in around pre-pandemic levels. 

The Labor Department said Thursday that weekly jobless claims were 222,000 for the week ended Nov. 27. This followed 194,000 claims from the prior week, which represented the lowest level since 1969, and was downwardly revised even further from the 199,000 previously reported. Consensus economists were expecting new claims to total 240,000 for the week ended Nov. 27.

Continuing claims, which measure the total number of individuals still claiming benefits across regular state programs, totaled 1.956 million for the week ended Nov. 20. This figure fell more than expected, and reached the lowest level since March 2020. 

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7:52 a.m. ET Thursday: Stock futures mixed 

Here’s where markets were trading Thursday morning:

  • S&P 500 futures (ES=F): +3 points (+0.07{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,511.50

  • Dow futures (YM=F): +117 points (+0.34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,119.00

  • Nasdaq futures (NQ=F) -53.75 points (-0.34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,816.00

  • Crude (CL=F): -$0.17 (-0.26{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $65.40 a barrel

  • Gold (GC=F): -$2.20 (-0.12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,782.10 per ounce

  • 10-year Treasury (^TNX): -1.5 bps to yield 1.419{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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6:31 p.m. ET Wednesday: Stock futures recover some losses

Here were the main moves in markets during the overnight session:  

  • S&P 500 futures (ES=F): +8.75 points (+0.19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,517.25

  • Dow futures (YM=F): +85 points (+0.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,087.00

  • Nasdaq futures (NQ=F): +39.75 points (+0.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,909.5

NEW YORK, NEW YORK - NOVEMBER 29: A trader works on the floor of the New York Stock Exchange (NYSE) at the start of trading on Monday following Friday’s steep decline in global stocks over fears of the new omicron Covid variant discovered in South Africa on November 29, 2021 in New York City. Stocks surged in morning trading as investors get more data on the new variant and reports that symptoms have so far been mild for those who have contracted it. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – NOVEMBER 29: A trader works on the floor of the New York Stock Exchange (NYSE) at the start of trading on Monday following Friday’s steep decline in global stocks over fears of the new omicron Covid variant discovered in South Africa on November 29, 2021 in New York City. Stocks surged in morning trading as investors get more data on the new variant and reports that symptoms have so far been mild for those who have contracted it. (Photo by Spencer Platt/Getty Images)

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

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International Finance Forum Releases Global Finance and Development Report 2021

International Finance Forum Releases Global Finance and Development Report 2021

GUANGZHOU, China, Dec. 3, 2021 /PRNewswire/ — International Finance Forum (IFF) today released the Global Finance and Development Report 2021 (GFDR) and Global Green Finance Development Index (GGFDI) along with country rankings.

“This is the first year that IFF is releasing the GFDR report and it will be released annually during IFF global meeting in the future,” introduced Zhuang Juzhong, chief economist of IFF and a former deputy chief economist of the Asian Development Bank. “The report aims to provide an annual assessment of global economic trends and prospects, financial development and innovation, and address long-term challenges and policy issues based on cross-country data, and eventually, promote international discussion and cooperation,” added Zhuang.

The GFDR consists of three chapters:

Chapter 1: Global economic outlook, risks and policy priorities. This chapter provides the latest updates on the COVID-19 pandemic and recent global economic development, and assesses the economic outlook, risks, and policy priorities. It encourages the global community to work together to speed up the vaccination rollout and eliminate vaccine inequality, ensure a smooth monetary policy transition, end trade tensions, promote green recovery, and support low-income countries.

Chapter 2: Global green finance development index and country rankings. This chapter focuses on recent global developments of green finance and launches GGFDI with country rankings. Jointly developed by IFF and the Central University of Finance and Economics in China, GGFDI applies a quantitative measure of progress in developing green finance at the country level and focuses on three areas: policy and strategy, product and market, and international cooperation. The GGFDI also provides rankings in green finance development of the world’s 55 largest economies as of the end of 2020.

Chapter 3: Roadmap to global carbon neutrality and China’s actions. This chapter reviews and assesses the measures on transformation of global energy systems and industrial sectors, and policy measures required to achieve the 2°C and 1.5°C climate targets set by the Paris Agreement. It also summarizes China’s technical solutions and policy options for achieving dual carbon goals.

With the launch of GFDR and GGFDI, IFF is encouraging more global discussions on policies needed to end the pandemic, reduce risks to the global economic recovery, promote green investment, fight against climate change, and make development more inclusive and sustainable.

For the full report, please visit: http://iff.org.cn/uploads/2021GAM/GFAD-report20211202.pdf

SOURCE International Finance Forum (IFF)

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4 things to cheer as Omicron makes its dramatic entrance: Morning Brief

4 things to cheer as Omicron makes its dramatic entrance: Morning Brief

This article first appeared in the Morning Brief. Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe

Thursday, December 2, 2021

‘The economic impact of COVID seems to be diminishing’

The Omicron variant of COVID-19 made its first domestic appearance on Wednesday, with one recorded case, a person who had traveled to South Africa and mildly symptomatic, being found in California. The news was enough to send stocks into a tailspin — again — and stoke new fears about efforts to contain the virus’ spread (i.e. mandates, restrictions and, perchance, more lockdowns).

“What a difference a week makes. A week ago stocks were at all-time highs and the economy was strong. Now all we have are uncertainties and questions,” explained LPL Financial Chief Market Strategist Ryan Detrick.

“As of now we’re optimistic that stocks will sidestep the new variant worries, but we recommend investors buckle up their seatbelts, as the end of 2021 could be a bumpy one.”

Since the new mutation made its inauspicious debut, the market has recorded more days in the red than otherwise, even though economic data like November ADP private payrolls data continue to defy gravity.

“The mapping from the virus to the lockdown to the macro world has been diminishing,” S&P Global Ratings chief economist Paul Gruenwald told Yahoo Finance Live on Wednesday. “That doesn’t mean we can’t get a shock. Omicron is gonna be a new shock… the good news is the economic impact of COVID seems to be diminishing.”

Still, it can’t be denied that growth remains firmly in an uptrend. And in the spirit of the season, the Morning Brief thinks it’s a worthwhile exercise to point out the myriad ways in which the U.S. economy, despite all odds, is very much firing on all cylinders.

Jobs are more than plentiful. The ADP data showed private sector employment jumped by 534,000 last month, better than most Wall Street estimates, while the employment component of the ISM’s manufacturing gauge showed job creation is still on a tear. That sets the stage for Thursday’s jobless data, which last week set a 52-year trough, and Friday’s all-important jobs report.

Wages are still going up — which means consumers are still willing to spend, spend — and spend some more. COVID-19 has put a damper on consumer sentiment, but that mood isn’t being reflected in high-frequency data. In fact, it’s making people more willing to ring up purchases on credit cards, as Yahoo Finance’s personal finance chief Janna Herron wrote on Wednesday — and a point the Morning Brief also made recently. It also provides us with a reminder that the inflationary pressures we’re experiencing are (for lack of a better phrase) a high-class problem created via a combination of implacable demand from rising pay and pent-up spending from 2020’s COVID-19 lockdowns.

Fourth quarter growth is tracking higher after a Q3 letdown. With consumer spending robust and manufacturing and construction figures also surprising to the upside, ING Chief International Economist James Knightly is expecting a Q4 growth print of at least 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. “Inflation is likely to record a similar reading, meaning the case for swifter Fed policy tightening is strong. Omicron permitting,” he wrote.

Oil is cratering. Whatever Omicron brings next, one critical element of soaring inflation — energy prices — has suddenly turned disinflationary with crude tumbling nearly $20 from a multiyear high set in October to under $65 per barrel. In fact, you could almost make the case that oil price action suggests crude is getting way oversold, as Yahoo Finance’s Brian Sozzi reported on Wednesday, citing a Goldman Sachs analysis. Yet another high-class problem to have.

By Javier E. David, editor at Yahoo Finance. Follow him at @Teflongeek

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How to Take a Merchant Cash Advance in a Smart Way

How to Take a Merchant Cash Advance in a Smart Way

If you don’t have enough money at your hand, you’re going to have a difficult time running your business and fulfilling day-to-day tasks. This is especially important these days when companies worldwide are struggling to stay afloat. Let’s see how you can best obtain quick access to working capital such as a cash advance.

How to Take a Merchant Cash Advance in a Smart Way

How to Make the Best Choice

Think of a merchant cash advance (MCA) as alternative financing, which isn’t a loan. MCA providers give you an upfront sum of cash in exchange for your future sales. There are certain factors to take into account when applying for a merchant cash advance. Let’s go through them:

 

  • Apply for a cash advance from a reputable alternative online lender.

 

  • Look for simple and flexible payment schedules. If the MCA provider asks you to provide requirements that are more than usually expected, consider applying to another one with a simpler process.

 

  • Make sure the interest rate is among the lowest in the industry.

 

  • As a rule, MCA providers automatically charge the amount you owe from the sales you make. However, there are MCA providing companies offering a different process. So, find out all the details and nuances about the payment form to make the right choice for your financial needs.

 

  • Make sure the provider doesn’t require any credit check or personal guarantee.

 

  • Find out whether there are restrictions on how you can use your funds.

 

  • Make sure there are no hidden fees or gimmicks.

 

  • Be aware that you can find an MCA provider that approves credit scores below 500 approved. So, if you have low scores, this can be the best option for you.

 

  • See whether you can get your funds as soon as possible, e.g. 72 hours from application.

 

  • Make sure no tax returns or financials are required.

 

How to Pick the Best MCA for Your Company

Unlike banks, MCA providers rely on financial technology when making funding decisions. Mostly, they work directly with a payment processor to figure out the amount of money that’s going in and out of your business account. There are some basic factors that you should take into consideration to choose the best MCA for your business.

Author Bio: Michael Hollis is a Detroit native who has helped hundreds of business owners with their cash advance solutions. He’s experimented with various occupations: computer programming, dog-training, accounting… But his favorite is the one he’s now doing — providing business funding for hard-working business owners across the country.

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Stocks pare earlier gains with Omicron, inflation in focus

Stocks pare earlier gains with Omicron, inflation in focus

Stocks turned lower Wednesday afternoon as more hawkish remarks from Federal Reserve Chair Jerome Powell compounded with concerns around the Omicron variant and its impacts on the economy. The S&P 500, Dow and Nasdaq each erased earlier gains to dip into the red.

The Centers for Disease Prevention and Control said Wednesday it identified the first confirmed case of the Omicron variant in the U.S.

The Centers for Disease Prevention and Control said Wednesday it identified the first confirmed case of the Omicron variant in the U.S. 

Stocks cut gains after CNN first reported the news around 1:45 p.m. ET, citing an unnamed person familiar with the matter. The U.S. joined more than two dozen other countries in reporting at least one case of the Omicron variant, which was first identified last week by scientists in South Africa. 

The latest development renewed concerns about the potential impact of the new variant for the domestic economy. A day earlier Moderna (MRNA) CEO Stephane Bancel told the Financial Times that the company’s current COVID-19 vaccine would likely see a “material drop” in effectiveness against Omicron, but that more data was still needed on the variant.

This commentary, as well as ongoing uncertainty over the transmissibility and severity of disease caused by the new variant, also contributed to the broader market slide seen on Tuesday. 

“The market doesn’t like an information vacuum, and now we have two,” Thomas Hayes, Great Hill Capital Chairman, told Yahoo Finance Live. “Not only did we have the CEO of Moderna expressing concern that his vaccines may not have full coverage for Omicron, but then you had Powell throw this … wrench into the mix at the hearing saying that maybe we’ll speed up taper by a few months. That’s no small potatoes for sure, because the market had anticipated over six or seven months that we would get another $660 billion of liquidity.”

Namely, Powell told the Senate Banking Committee that it would be appropriate for the central bank to consider completing its asset-purchase tapering process “a few months sooner” than previously telegraphed. Market participants had been anticipating that the Fed might strike a more supportive stance for longer especially given concerns over the latest coronavirus variant. But instead, Powell suggested his priority was on curbing persistently elevated levels of inflation, and the Fed chair added it was “probably a good time to retire” his description of inflation as “transitory.”

“Chairman Powell’s commentary course-corrected the view on inflation and the potential need for quicker policy adjustment,” Charlie Ripley, senior investment strategist for Allianz Investment Management, wrote in an email. “The reality is hotter inflation coupled with a strong economic backdrop could end the Fed’s bond buying program as early as the first quarter of next year.”

“Ultimately, the transitory view on inflation has officially come to an end as Powell’s comments reinforced the notion that elevated prices are likely to persist well into next year,” he added. “With potential changes in policy on the horizon, market participants should expect additional market volatility in this uncharted territory.” 

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4:04 p.m. ET: Stocks end whipsaw session lower after first U.S. Omicron case confirmed: Nasdaq drops 1.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Here were the main moves in markets as of 4:04 p.m. ET:

  • S&P 500 (^GSPC): -53.98 (-1.18{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,513.02

  • Dow (^DJI): -461.65 (-1.34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,022.07

  • Nasdaq (^IXIC): -283.64 (-1.83{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,254.05

  • Crude (CL=F): -$0.79 (-1.19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $65.39 a barrel

  • Gold (GC=F): +$3.30 (+0.19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,779.80 per ounce

  • 10-year Treasury (^TNX): -0.9 bps to yield 1.4340{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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2:50 p.m. ET: ‘The market lacks conviction on the upside’: Strategist

Investors are in for more whipsaw stock market action in the very near-term as more information emerges on the new Omicron variant, according to at least one strategist. 

“The price action you’re seeing now really shows the market lacks conviction on the upside,” Niladri Mukherjee, Bank of America head of portfolio strategy, told Yahoo Finance Live on Wednesday.

“In the last couple of weeks, we’ve had two major uncertainties being injected into the market place. One obviously was the news of the new variant, which we know very little about right now. And the second is the possibility of a more hawkish Fed,” he added. “And you’ve seen on different days, on some positive days, you’ve seen a recovery in some of the value and cyclicals which do well when the economy does well. And other days, you’ve seen the secular growth-oriented sectors, like technology doing better than the S&P 500.”

“We think uncertainty will be with us at least in the near-term until we learn more about the virus — its severity, its transmissibility, how much it is evading the vaccines, etc.,” Mukherjee said. “But as we go into 2022, the bigger environment will be that which is really dictated by the Fed’s path to monetary policy normalization.”

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12:55 p.m. ET: Bank stocks jump amid rise in Treasury yields

Bank stocks jumped Wednesday afternoon as Treasury yields climbed, with traders pricing in expectations for an interest rate hike by the Federal Reserve next year after its asset-purchase tapering process ends.

The two-year yield, which is sensitive to expectations for monetary policy changes, jumped by about 5.5 basis points Wednesday afternoon to hover around 0.58{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The yield on the benchmark 10-year Treasury note rose by 1 basis point to 1.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. 

The jump in Treasury yields helped lift shares of major banks including JPMorgan Chase and Goldman Sachs, both of which are also Dow components. The KBW Regional Banking Index, an exchange-traded funding tracking bank stocks, rose by more than 3.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for its best climb in a month. 

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10:05 a.m. ET: ISM Manufacturing index ticks up to 61.1 in November, coming in-line with estimates

Manufacturing sector activity picked up in November compared to October, though inflationary concerns and other price pressures continued to weigh on goods-producing industries.

The Institute for Supply Management’s (ISM) November manufacturing index came in at 61.1 for the month, up from 60.8 in October. Readings above the neutral level of 50.0 indicate expansion in a sector. 

Beneath the headline index, a subindex tracking prices paid eased to 82.4 from 85.7 in October, but still came in elevated compared to pre-pandemic levels amid lingering inflation. A subindex tracking employment improved to 53.3, rising from October’s 52.0. 

“The U.S. manufacturing sector remains in a demand-driven, supply chain-constrained environment, with some indications of slight labor and supplier delivery improvement,” Timothy Fiore, Chair of the Institute for Supply Management Manufacturing survey, said in a press statement. “All segments of the manufacturing economy are impacted by record-long raw materials and capital equipment lead times, continued shortages of critical lowest-tier materials, high commodity prices and difficulties in transporting products.”

“Pandemic-related global issues — worker absenteeism, short-term shutdowns due to parts shortages, difficulties in filling open positions and overseas supply chain problems — continue to limit manufacturing growth potential,” Fiore added. 

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9:32 a.m. ET: Stocks rise, S&P 500 and Nasdaq gain more than 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Here’s where markets were trading just after the opening bell:

  • S&P 500 (^GSPC): +48.17 (+1.05{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,615.17

  • Dow (^DJI): +254.43 (+0.74{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,738.15

  • Nasdaq (^IXIC): +177.88 (+1.13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,712.72

  • Crude (CL=F): +$2.30 (+3.48{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $68.48 a barrel

  • Gold (GC=F): +$13.00 (+0.73{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,789.50 per ounce

  • 10-year Treasury (^TNX): +3.7 bps to yield 1.478{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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8:22 a.m. ET: Private payrolls rose more than expected last month: ADP

Private sector employment expanded more than anticipated in November, suggesting further improvement in the labor market’s recovery.

U.S. private payrolls grew by 534,000 in November compared to October, ADP said in its closely watched monthly report. Consensus economists were looking for private payrolls to rise by 525,000, according to Bloomberg data. Private payrolls had grown by 570,000 in October, according to ADP’s revised monthly figure.

More data on the state of the labor market will be due on Friday, when the Labor Department releases its “official” government jobs report. Consensus economists are looking to see non-farm payrolls rose by 548,000 in November, accelerating modestly from October’s better-than-expected 531,000 rise. ADP’s report has not typically served as a perfect indicator of what to expect from the government job report due to differences in survey methodology. 

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7:24 a.m. ET Wednesday: Stock futures hold onto gains, Dow futures gain nearly 300 points

Here’s where markets were trading as of 7:24 a.m. ET: 

  • S&P 500 futures (ES=F): +55.75 points (+1.22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,622.00

  • Dow futures (YM=F): +293.00 points (+0.85{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,750.00

  • Nasdaq futures (NQ=F): +236.00 points (+1.46{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,386.50

  • Crude (CL=F): +$2.96 (+4.47{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $69.14 a barrel

  • Gold (GC=F): +$11.50 (+0.65{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,788.00 per ounce

  • 10-year Treasury (^TNX): +4.4 bps to yield 1.485{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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6:15 p.m. ET Tuesday: Stock futures rebound 

Here were the main moves in markets as the overnight session kicked off: 

  • S&P 500 futures (ES=F): +22.25 points (+0.49{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,588.5

  • Dow futures (YM=F): +92 points (+0.27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,549.00

  • Nasdaq futures (NQ=F): +93 points (+0.58{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,243.5

NEW YORK, NEW YORK - NOVEMBER 29: A trader works on the floor of the New York Stock Exchange (NYSE) at the start of trading on Monday following Friday’s steep decline in global stocks over fears of the new omicron Covid variant discovered in South Africa on November 29, 2021 in New York City. Stocks surged in morning trading as investors get more data on the new variant and reports that symptoms have so far been mild for those who have contracted it. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – NOVEMBER 29: A trader works on the floor of the New York Stock Exchange (NYSE) at the start of trading on Monday following Friday’s steep decline in global stocks over fears of the new omicron Covid variant discovered in South Africa on November 29, 2021 in New York City. Stocks surged in morning trading as investors get more data on the new variant and reports that symptoms have so far been mild for those who have contracted it. (Photo by Spencer Platt/Getty Images)

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter