Finance News Archives - Page 57 of 66

November 24, 2021

Nasdaq drops 0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} while Dow gains 195 points, or 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Stocks were mixed on Tuesday with technology stocks under further pressure, as investors further mulled the market implications of Federal Reserve Jerome Powell’s renomination to lead the central bank.

The S&P 500 ended slightly higher. The Nasdaq lagged as investors further turned away from technology and growth stocks. The Dow — which is heavily weighted in cyclical stocks — gained more than 150 points, or 0.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, during afternoon trading as energy and financials shares outperformed.

U.S. West Texas intermediate crude oil futures (CL=F) recovered losses and rose 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after dropping more than 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} earlier in the morning. The move came after the White House announced it would be releasing a total of 50 million barrels of oil from the Strategic Petroleum Reserve (SPR), in tandem with similar moves from China, Japan, India and South Korea and the U.K., to try and ease rising energy prices with additional supply. In a speech on Tuesday, Biden said the reserve releases “will not solve the problem of high gas prices overnight but will make a difference.”

Shares of Zoom Video Communication (ZM) slid even after the company posted better-than-expected quarterly revenue growth and full-year guidance, with usage of the video conferencing company’s software slowing amid the reopening. Companies including Nordstrom (JWN), The Gap (GPS) and Autodesk (ADSK) are set to report quarterly results on Tuesday.

Federal Reserve Chair Jerome Powell’s renomination to the top leadership position at the central bank captured market attention this week, with many investors reacting favorably to the likelihood that the Fed’s previously telegraphed monetary policy framework would remain in place with Powell’s reappointment. That includes expectations for current asset-purchase tapering to take place through the middle of next year, and for at least one interest rate hike to take place before the end of 2022.

“Continuity at a time of such extraordinary uncertainty is certainly welcome news. We have extraordinary uncertainty because we’re pivoting from the phase of the cycle where the Fed had been shoring up the recovery from the pandemic-induced recession, and … it did avoid a meltdown in financial markets,” Diane Swonk, Grant Thornton chief economist, told Yahoo Finance Live. “But now we’ve got very easy financial market conditions and we’re dealing with inflation. And having to pivot to dealing with inflation and tamp it down without derailing the recovery — that’s a very hard thing to pull off. We’ve not seen the Fed actually chase inflation down since the early 1980s.”

President Joe Biden also nominated Fed Governor Lael Brainard – previously viewed as a potential candidate for the Fed Chair position to replace Powell — as Vice Chair of the Board of Governors for the Fed. With these two nominations in place, market participants have turned their attention to who might fill he three vacant and soon-to-be vacant seats on the Fed Board, which includes the key Vice Chair for Supervision role. Biden said in a press statement Monday morning he expected to announce those appointments “beginning in early December.”

“Political decisions like this are competitions between affinity — you like someone in your own party — and convenience — what can you get the Senate to do for you, and will markets receive it well? You have to view the Powell-Brainard picks as part … of a bigger package,” Vincent Reinhart, Dreyfus-Mellon chief economist and macro strategist, told Yahoo Finance Live. “The White House is going to have three new governors to appoint, and presumably that’s going to tilt more progressive. So bottom-line, six months from now, the group of people that Chair Powell has to wrangle to make decisions is going to be more dovish than it is today.”

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4:07 p.m. ET: Stocks end mixed as tech rout extends: Nasdaq drops 0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} while Dow gains 195 points, or 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Here were the main moves in markets as of 4:07 p.m. ET:

S&P 500 (^GSPC): +7.76 (+0.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,690.70
Dow (^DJI): +194.55 (+0.55{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,813.80
Nasdaq (^IXIC): -79.62 (-0.50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,775.14
Crude (CL=F): +$2.01 (+2.62{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $78.76 a barrel
Gold (GC=F): -$15.50 (-0.86{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,790.80 per ounce
10-year Treasury (^TNX): +4.2 bps to yield 1.6670{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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1:55 p.m. ET: Ark Innovation Fund on track for worst 5-day drop since March as tech rout deepens

Cathie Wood’s Ark Innovation Fund (ARKK) was pacing for its worst 5-day performance in eight months, as the fund heavily weighted in growth stocks was hit by this week’s technology stock rout.

The exchange-traded fund was off by about 12.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over the last five days through intraday trading on Tuesday. That’s come as some of the fund’s biggest holdings have posted significant declines over that period: Teledoc Health and Zoom Video Communications, comprising a 5.97{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and 4.95{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} weight in the ETF, respectively, have each dropped more than 24{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Other holdings including Roku, Square and Twilio have also dropped by double-digit percentages over that period.

One notable exception has been Tesla, or the largest holding in the ETF. Shares of the electric-vehicle maker have risen 2.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over the last five days through Tuesday afternoon.

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9:49 a.m. ET: U.S. services PMI falls to two-month low, while manufacturing PMI rises to two-month high: IHS Markit

Closely watched indices tracking economic activity in both the U.S. services and manufacturing sectors showed a divergence in early November, with the supply constraints and rising prices dampening growth especially in private service industries.

IHS Markit’s preliminary November U.S. services purchasing managers’ index (PMI) unexpectedly fell to 57.0 from 58.7 in October, marking the lowest level in two months. Consensus economists had been looking for the index to rise to 59.0, according to Bloomberg data. Readings above the neutral level of 50.0 indicate expansion in a sector.

The firm’s manufacturing PMI, however, rose to a two-month high of 59.1 and matched expectations. The manufacturing PMI had been at 58.4 in October. Taken together with the drop in the services PMI, the composite PMI for November fell to 56.5 from 57.6 in October, in a sign of slowing overall growth.

“The slowdown underscores how the economy is struggling to cope with ongoing supply constraints,” Chris Williamson, chief business economist for IHS Markit, wrote in a press statement. Although supplier delivery delays eased to the lowest for six months, the lengthening of lead times remains far greater than anything seen prior to the pandemic, restricting output relative to demand and once again causing prices to rise sharply.”

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9:34 a.m. ET: S&P 500, Nasdaq extend declines as tech drop continues

Stocks open mixed on Tuesday, with both the S&P 500 and Nasdaq declining as technology stocks added to Monday’s losses.

The Dow hovered little changed, with financials and other cyclical stocks rising further following Federal Reserve Chair Jerome Powell’s renomination to keep his role as leader of the central bank. Goldman Sachs, Chevron and JPMorgan Chase outperformed in the 30-stock index, while Microsoft, Salesforce.com and Nike weighed to the downside.

Treasury yields also gained across the long end of the curve. The benchmark 10-year yield rose more than 2 basis points to drift just below 1.646{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

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7:33 a.m. ET Tuesday: Stock futures mostly lower

Here’s where markets were trading Tuesday morning:

S&P 500 futures (ES=F): -1 point (-0.02{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,678.75
Dow futures (YM=F): +21 points (+0.06{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,592.00
Nasdaq futures (NQ=F): -26.75 points (-0.16{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,355.25
Crude (CL=F): -$0.42 (-0.55{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $76.33 a barrel
Gold (GC=F): -$9.30 (-0.51{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,797.00 per ounce
10-year Treasury (^TNX): +2.6 bps to yield 1.651{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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6:06 p.m. ET Monday: Stock futures open slightly higher

Here’s where markets were trading Monday evening:

S&P 500 futures (ES=F): +7.5 points (+0.16{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,687.25
Dow futures (YM=F): +49 points (+0.14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,620.00
Nasdaq futures (NQ=F): +28.5 points (+0.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,410.50

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 8, 2021. REUTERS/Brendan McDermid

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

November 23, 2021

CSG Announces Departure of Chief Financial Officer Rollie Johns & Appointment of Hai Tran as New CFO

Denver, CO –News Direct– CSG

CSG^® (NASDAQ: CSGS), the leader in innovative customer engagement, revenue management and payments solutions, today announced that Rolland “Rollie” B. Johns, executive vice president and chief financial officer of the company, has shared plans to step down. Concurrently, Hai Tran has been appointed as the company’s new executive vice president and chief financial officer effective November 29.

“On behalf of the entire CSG team, I thank Rollie for his significant contributions and many years of service,” said Brian Shepherd, president and CEO for CSG. “Rollie has been a trusted and valuable business leader and partner to me, our Board, and our employees. Equally important, Rollie has built a strong global CFO team that is well positioned for continued success. We wish him all the best in his future endeavors.”

Shepherd added, “At the same time, I am very excited to announce the addition of Hai to Team CSG. Hai has a proven track record as a strategic, growth-oriented chief financial officer with deep public-company, global technology experience. He is a fantastic fit for CSG at this transformational juncture of our company’s history and will be instrumental in helping us passionately pursue our plans of becoming a more purpose-driven, higher growth, SaaS platform company.”

“I am honored to be appointed chief financial officer during this truly exciting time at CSG, as the company accelerates our strategic transformation,” said Tran. “CSG’s guiding principles and mission resonate deeply with me as we look to not only grow and diversify into new verticals, but also make ordinary customer and employee experiences extraordinary. Putting customers and employees at the center of everything we do will drive long-term and sustained value-creation for all of our stakeholders.”

Tran will be responsible for overseeing CSG’s global financial operations, including CSG’s finance, accounting, treasury, risk, and investor relations functions and will report directly to Shepherd.

Tran brings 30 years of finance and business experience, having most recently served as president and chief operating officer at Soc Telemed, the largest U.S. provider of acute care telemedicine services. Prior to that he has served as chief financial officer at a number of companies including Soc Telemed, BioScrip, Inc., Harris Healthcare Solutions and Catalyst Health Solutions.

Johns joined CSG in 2013 as chief accounting officer and since becoming CFO in 2018 has led CSG’s finance, accounting, treasury, risk, and investor relations functions.

About CSG

CSG is a leader in innovative customer engagement, revenue management and payments solutions that make ordinary customer experiences extraordinary. Our cloud-first architecture and customer-obsessed mindset help companies around the world launch new digital services, expand into new markets, and create dynamic experiences that capture new customers and build brand loyalty. For nearly 40 years, CSG’s technologies and people have helped some of the world’s most recognizable brands solve their toughest business challenges and evolve to meet the demands of today’s digital economy with future-ready SaaS platforms that drive exceptional customer experiences. With 5,000 employees in over 20 countries, CSG is the trusted technology provider for leading global brands in telecommunications, retail, financial services, government, and healthcare. Our solutions deliver real world outcomes to more than 900 customers in over 120 countries. To learn more, visit us at csgi.com and connect with us on LinkedIn and Twitter.

Contacts:

Tammy Hovey

Public Relations

+1 (917) 520-2751

tammy.hovey@csgi.com

John Rea

Investor Relations

+1 (210) 687-4409

john.rea@csgi.com

Contact Details

CSG

Tammy Hovey

+1 917-520-2751

tammy.hovey@csgi.com

Company Website

https://www.csgi.com

View source version on newsdirect.com: https://newsdirect.com/news/csg-announces-departure-of-chief-financial-officer-rollie-johns-and-appointment-of-hai-tran-as-new-cfo-642101748

November 22, 2021

In UAE, French finance minister warns of climate action cost

Just over a week after some 200 nations struck an agreement aimed at intensifying global efforts to fight climate change, the finance minister of France has warned that the cost of the energy transition will be “much higher than expected.”

November 21, 2021, 6:08 PM

3 min read

ABU DHABI, United Arab Emirates — Just over a week after some 200 nations struck an agreement aimed at intensifying global efforts to fight climate change, the finance minister of France warned on Sunday that the cost of the energy transition will be “much higher than expected.”

“We should never underestimate the price of the climate transition,” Bruno Le Maire told reporters in Abu Dhabi, the oil-rich capital of the United Arab Emirates.

Reveling in France’s strong economic rebound from the devastation of the pandemic, Le Maire was in the Gulf Arab sheikhdom to discuss joint investments in a wide range of fields, from port infrastructure to hydrogen fuel and renewable energy.

The UAE has publicly pledged to have net zero carbon emissions by 2050, among a list of countries that made the long-range, still-vague commitment before the climate summit in Glasgow opened earlier this month. Even as the country with the region’s first nuclear power plant tries to position itself as a leader on environmental issues, the hydrocarbon-rich UAE’s economy feeds on petrodollars.

Le Maire noted the challenges facing industrialized economies if they shift away from the cheap fuel pumped out of the Persian Gulf toward renewable energy sources.

“We don’t want the people with the lowest income to pay for the climate transition,” he said, acknowledging lessons learned from the carbon tax aimed at encouraging alternative energy use that sparked France’s mass so-called Yellow Vest protest movement in 2018.

To help bridge the energy transition, Le Maire stressed the need to fund new energy technologies, adding that France’s “faster cooperation” with the UAE in the field “is of the highest value.”

The UAE and France have become increasingly aligned in recent years, sharing a mistrust of political Islam across the Middle East. Major French aviation and defense companies have powered growth in the emirates, home to over 30,000 French citizens. Le Maire on Sunday toured Abu Dhabi’s outpost of the Louvre, which draws visitors to artifacts on loan from the Paris museum.

Le Maire, a close partner of President Emmanuel Macron who’s now gearing up for a re-election campaign, touted France’s mass vaccinations that he said fueled the economy’s expected 6.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} growth rate for the year.

“We are not in the position of other European countries,” he said, as Austria lurches into lockdown to stem its worst wave of coronavirus infections.

“(Lockdowns) have a very negative impact on the economy and that’s the exactly the kind of situation we want to avoid.”

November 21, 2021

Thanksgiving turkey, food should be plentiful, but may cost ‘quite a bit’ if you haven’t gotten yet

Thanksgiving 2021 is already here and consumers are flocking to the stores to get last minute items.

Yet given surging prices and the supply crisis that’s resulted in shipping bottlenecks, will there be anything left? According to experts, the answer is — there should be.

“Consumers are are not really panic buying, but they’re buying in anticipation of not having it,” Pedro M. Reyes, associate professor of business at Baylor University, told Yahoo Finance.

In many U.S. grocery stores, consumers are beginning to see limited supply of fan favorites for this time of year like cranberries, pumpkin, sweet potatoes and other perishable items, Reyes stated. But turkeys — the main star of the Thanksgiving meal —will not run out.

“Quite frankly, turkeys are processed year round and the frozen turkeys have already been stockpiling since probably July,” Reyes explained. “That’s why we won’t see a shortage, we’ll just see a limited supply because it has to be moved from one place to another place.”

In a recent interview with Yahoo Finance, Butterball CEO sent the same message to consumers.

“We don’t expect a shortage of turkeys. We do expect there will be some differences in the sizes that the customer is going to find. The smaller turkeys will be a little bit tougher to come by,” according to Jay Jandrain, Butterball CEO and president.

But if consumers haven’t bought a turkey just yet, Reyes argued you’ll likely pay “quite a bit more money for it” now.

Buy what you need, but not more than that

LOS ANGELES, CALIFORNIA - NOVEMBER 11: A shopper walks past turkeys displayed for sale in a grocery store ahead of the Thanksgiving holiday on November 11, 2021 in Los Angeles, California. U.S. consumer prices have increased solidly in the past few months on items such as food, rent, cars and other goods as inflation has risen to a level not seen in 30 years. The consumer-price index rose by 6.2 percent in October compared to one year ago. (Photo by Mario Tama/Getty Images) — LOS ANGELES, CALIFORNIA – NOVEMBER 11: A shopper walks past turkeys displayed for sale in a grocery store ahead of the Thanksgiving holiday on November 11, 2021 in Los Angeles, California. U.S. consumer prices have increased solidly in the past few months on items such as food, rent, cars and other goods as inflation has risen to a level not seen in 30 years. The consumer-price index rose by 6.2 percent in October compared to one year ago. (Photo by Mario Tama/Getty Images)

According to LendingTree analysis of US Department of Agriculture data, a whole fresh turkey will be 6.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} more than last year. A frozen hen (a female turkey) will cost 4.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} more than 2020 and a frozen tom (a male turkey) will be 6.0{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} more, the data showed.

Katie Denis, Vice President for research and communications at Consumer Brands Association (CBA), also says consumers can expect limited supply on certain items.

According to CBA data, out-of-stock rates for perishable goods is currently at 13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, while certain categories, like frozen foods and beverages are a bit higher at 14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. These rates reflect high demand, given the average out-of stock rates is typically 7 to 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

“This does not mean products are unavailable, it means there could be spotty outages, where consumers in some locations may see fewer choices,” Denis told Yahoo Finance in an email. She encouraged customers to plan ahead when heading to the store, be flexible and buy what they need — but not more than that.

Denis argued the consumer packaged goods (CPG) supply chain is “adapting” to a new COVID-era normal. According to a recent CBA report, demand for CPGs skyrocketed 21{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in March of 2020 and now the demand is still at an all-time high. In the third quarter of 2021, demand for CPG was 8.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} more than the same period the year before, and 1.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} more than the prior quarter.

In March 2020, “shelves were cleared but today stores are relatively well stocked,” Denis said. That “should be a good indicator to consumers that the holiday table won’t be sparse.”

We believe this is because the system is already maxed-out and many food suppliers do not have the labor and surplus inventory they need to meet that type of demand surge.Kerry Byrne

Before consumers even see their favorites on the shelves, delivery operators are struggling to keep up with high demand as well.

Kerry Byrne, president of Cincinnati-based freight brokerage and third party logistics firm Total Quality Logistics, told Yahoo Finance that transportation operators are operating “business as normal” right now, despite a typical surge in demand this time of year.

Byrne says this time of year is always “peak” for transportation, but this year “peak” capacities have been nonstop. “There has been zero break in the action to allow the system to catch-up on backlogs,” he said.

Typically, needed transportation like refrigerated trucks typically see a run-up in demand in early November, then peak the weekend before Thanksgiving. Due to high demand all throughout 2021, that demand is “essentially flat to prior weeks,” he explained.

“We believe this is because the system is already maxed-out and many food suppliers do not have the labor and surplus inventory they need to meet that type of demand surge,” Byrne added. While this is a top concern among producers, consumers and grocers, he stressed “there will be plenty of food around your Thanksgiving table.”

The executive added: “It might not be the size of turkey you prefer but there will be plenty. Items that are perishable and have more time sensitive shipping windows is what you will see shortages of. Non-perishable items are typically moved during the summer to warehouses near where they will be distributed for Thanksgiving, so things like canned goods should be readily available.”

Consumer staples girded for demand

CARVER, MA - OCTOBER 1: A worker rakes cranberries into a large suction hose under the water that are corraled into a circle at the Edgewood Bogs in Carver, MA on Oct. 1, 2020. In hip boots, workers waded into cold bogs under a deep blue sky to harvest the bright crimson berries that have been a decades-old staple on Thanksgiving tables. Edgewood Bogs, which grows a variety of cranberries on its 250 acres, began wet harvesting on Sept. 21 and will continue until Nov. 1.(Photo by John Tlumacki/The Boston Globe via Getty Images) — CARVER, MA – OCTOBER 1: A worker rakes cranberries into a large suction hose under the water that are corraled into a circle at the Edgewood Bogs in Carver, MA on Oct. 1, 2020. In hip boots, workers waded into cold bogs under a deep blue sky to harvest the bright crimson berries that have been a decades-old staple on Thanksgiving tables. Edgewood Bogs, which grows a variety of cranberries on its 250 acres, began wet harvesting on Sept. 21 and will continue until Nov. 1.(Photo by John Tlumacki/The Boston Globe via Getty Images)

Consumer-facing companies like General Mills (GIS), Ocean Spray and Conagra (CAG) are doing all that they can to make sure consumers will have what they need for the most ideal Thanksgiving meal.

Kelsey Roemhildt, a spokesperson for General Mills, told Yahoo Finance in an email that the company was “committed to ensuring consumers can find their favorite foods this holiday season,” and was focused on “implementing alternative sources across all areas – including suppliers, material substitutions, locations, and geographies.”

Ocean Spray struck a similar theme, telling Yahoo Finance in a statement that “while we do not anticipate significant impacts, consumers may experience some availability issues at times. We do think flexibility across the Thanksgiving table will be needed this year,” citing its fresh, jellied and whole-berry cranberry options.

A spokesperson from Conagra — behind brands like Duncan Hines, PAM Cooking Spray and Bird’s Eyes — told Yahoo Finance consumers may see spotty supply here and there, but they are doing all that they can to prepare for yet another busy holiday season.

“Due to supply chain issues and increased demand, stores may run low on popular items like Marie Callendar’s pies, Reddi-Wip whipped cream, Gardein plant-based meat alternatives and Swiss Miss hot cocoa, but Conagra Brands is ramping up production on these holiday favorites to meet consumers’ needs,” the spokesperson added.

Brooke DiPalma is a reporter and producer for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.

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November 20, 2021

Omarova lays out ‘scary scenario’ in crypto, gets pushback from senators in hearing

Saule Omarova, President Joe Biden’s , sketched out the probability of “scary” scenarios rising in cryptocurrency, but confronted a mix of skepticism and agreement from senators on her sights.

For the duration of her visual appearance right before the Senate Banking Committee on Thursday, Omarova — who is currently being vetted to be the future Comptroller of the Forex, which regulates the greater part of the nation’s banking companies — voiced problems that massive tech firms could manage the payment infrastructure in the U.S. if personal electronic currencies are permitted to prosper, likely displacing the worth of the U.S greenback.

“I’m having difficulties with your see about electronic assets,” Senator Cynthia Lummis (R-WY) informed Omarova at the hearing.

When asked by the senator regardless of whether she only believes in fiat currency, Omarova replied, “No … My problem is … we might close up in a circumstance exactly where a massive corporation like a large tech organization could possibly regulate all of the infrastructure via which the cash that each and every American and each American enterprise makes use of in their daily moves.”

Omarova agreed with Rhode Island Democrat Jack Reid, who posed a situation in which Fb layouts a digital forex that overtakes the U.S. dollar creating the dollar a thing that just can’t be used to control our economy.

“National banks would not need a constitution, they would just need to get a franchise from Facebook, is that ideal?” Reid asked.

“That’s correct,” the nominee replied. “This is the frightening scenario everybody ought to take very seriously these days.”

Omarova claimed she concerned that embracing personal cryptocurrencies could make it more challenging for the U.S. dollar to remain dominant — a issue .

“My issue is that in the procedure exactly where a whole lot of non-public actors like Fb can difficulty their personal variation of forex, that can likely outpace and even displace the U.S. dollar,” Omarova informed senators.

That could have “implications significantly outside of what we usually take into account in the banking sphere, but could possibly also undermine our sovereignty and the value of the dollar,” she additional.

Retain the greenback dominant

WASHINGTON, DC - NOVEMBER 18: Chairman Sen. Sherrod Brown (D-OH) listens during Dr. Saule Omarova's nomination hearing to be the Comptroller of the Currency with the Senate Banking, Housing and Urban Affairs Committee on Capitol Hill on November 18, 2021 in Washington, DC. Senators questioned Omarova about her views and past comments on bank oversight. (Photo by Anna Moneymaker/Getty Images) — WASHINGTON, DC – NOVEMBER 18: Chairman Sen. Sherrod Brown (D-OH) listens through Dr. Saule Omarova’s nomination hearing to be the Comptroller of the Currency with the Senate Banking, Housing and City Affairs Committee on Capitol Hill on November 18, 2021 in Washington, DC. Senators questioned Omarova about her views and earlier comments on lender oversight. (Image by Anna Moneymaker/Getty Visuals)

Omarova mentioned the new technologies present a good deal of probable gains for superior efficiency of payment and transactions as very well as fiscal inclusion. Nonetheless, “it does elevate a large amount of challenges with regard to the ability of our nation to keep the dominant standing of the U.S. dollar in the global financial state.”

She argued the motive the greenback has retained its dominant status is since the Federal Reserve has been ready to manage the worth of the greenback and preserve the income supply in the overall economy.

When requested by Lummis irrespective of whether she assumed Bitcoin () threatens nationwide safety, Omarova mentioned she’s not an pro in bitcoin, but apprehensive that if all U.S. fiscal transactions have been component of a blockchain procedure. Many actors might be performing in the fascination of the U.S. could acquire management of the procedure, she prompt.

Omarova added that she worried private businesses are pursuing gains, which may well lower into the public fascination by not letting equivalent obtain to income for anyone.

“I do consider we have govt issued dollars now in this country and it’s functioning fantastic and I get worried about permitting non-public innovation to undermine a lot of essential public guidelines we require to pursue,” said Omarova.

Whilst she anxieties about non-public currencies, Omarova suggests she favors a above privately issued stablecoins because it is issued by the federal government and will make certain access for everybody.

“The a person prospective edge of CBDC about privately issued stablecoins is that it will be issued issue to statutory mandate lawful conclusions manufactured by democratically elected lawmakers,” Omarova explained to the committee.

“So that will allow for the central bank less than the oversight of congress to guarantee anyone has truthful accessibility to new sorts of revenue,” she included.

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November 19, 2021

Nasdaq jumps as Amazon, Apple gain while Dow posts back-to-back session of losses

Stocks were mixed on Thursday as investors weighed a batch of solid corporate earnings results against lingering inflation concerns.

The S&P 500 and Nasdaq ended a choppy session higher. The Dow lagged, led by a drop in shares of Cisco (CSCO). The company posted quarterly results that were dented by components shortages, and the computer networking equipment company posted a disappointing current-quarter forecast. And meanwhile, Alibaba’s (BABA) sharply disappointing quarterly report and slashed guidance for the full year raised alarm bells about the pace of growth in China — the world’s second-largest economy — as company executives highlighted slowing consumption trends

Nvidia (NVDA) shares jumped, however, after the semiconductor company posted record quarterly revenues and strong full-year guidance. The report suggested it was effectively navigating a lingering global shortage and meeting elevated demand.

The past couple days of equity market volatility have coincided with a mixed set of economic data, with a new print Thursday showing jobless claims ticked down only modestly last week, and a report Wednesday showing a surprise drop in new-home construction last month. Commentary about inflation also mounted and added to investors’ concerns over elevated price pressures. Target (TGT) executives flagged rising labor and other input costs during their earnings call on Wednesday and added to a chorus of other company mentions of inflation.

The possibility that elevated inflation will stick around longer than previously anticipated remained a central focus for investors, both for its potential dampening effect on consumer spending, and as a potential catalyst for the Federal Reserve to raise interest rates sooner than previously telegraphed. The U.S. central bank has so far maintained its accommodative tilt and telegraphed that an initial interest rate hike could take place sometime next year, depending on the evolution of the economic recovery. Investors also continue to await a formal announcement from President Joe Biden about his nominee for Fed chair, with the most likely candidates being current Fed Chair Jerome Powell, and current Fed Governor Lael Brainard.

The Fed’s present still-accommodative leaning has helped support equity markets and capped Treasury yields, which has in turn further kept investors focused on riskier assets like stocks over bonds.

“The yield question is kind of global in nature,” Uma Pattarkine, CenterSquare senior analyst, told Yahoo Finance Live on Wednesday. “We still see [central] banks being very, very accommodative. So it seems like we might be kind of in this ‘lower rate for a longer time’ environment.

“At this point investors really need to be looking at yields, where they can get it elsewhere in the market if they’re not planning on getting it through fixed income in the near future, until we see that movement in the global rate market,” Pattarkine added.

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4:13 p.m. ET: Nasdaq and S&P 500 end higher as Amazon, Apple gain; Dow closes slightly lower

Here were the main moves in markets as of 4:13 p.m. ET:

S&P 500 (^GSPC): +15.87 (+0.34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,704.54
Dow (^DJI): -60.10 (-0.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,870.95
Nasdaq (^IXIC): +72.14 (+0.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,993.71
Crude (CL=F): +$0.35 (+0.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $78.71 a barrel
Gold (GC=F): -$7.80 (-0.42{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,862.40 per ounce
10-year Treasury (^TNX): -1.5 bps to yield 1.5890{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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1:32 p.m. ET: ‘It’s not just an inflation story, it’s a growth story’: UBS

Investors should take into consideration both rising inflation and improving economic growth in the current macro environment when contemplating investments, Jason Draho, UBS head of asset allocation Americas, noted to Yahoo Finance Live on Thursday.

“The environment right now that’s leading to inflation is also tied to a very strong economic recovery in the U.S., but even increasingly globally. Part of that story means, it’s not just an inflation story, it’s a growth story,” Draho said. “So things that you can do in your portfolio and ways to take advantage of it and sort of get the benefit of both aspects, which means buying things tied to what’s in demand … things like commodities, financials, things of that sort. So part of this is a hedge for inflation but part of it is also a play for a longer-term recovery.”

Draho also added that some of the factors contributing to present levels of inflation — namely, supply-side disruptions — may soon dissipate.

“I’d say we’re at the peak or even probably past the peak,” of supply chain bottlenecks, he added. “It’s still going to probably take at least a few quarters for things to really sort of be running fully efficiently.”

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12:30 p.m. ET: Microsoft shares set record intraday high, Amazon’s stock jumps to reach highest since July

Big Tech stocks outperformed on Thursday to help pull the S&P 500 and Nasdaq higher, and both shares of Microsoft and Amazon set new milestones.

Microsoft (MSFT) shares rose to a record intraday high, sending the stock’s market capitalization further above $2.5 trillion. Amazon (AMZN) shares, meanwhile, jumped to their highest level since July, helping unwind a multi-month drift that still left the stock underperforming against the S&P 500 for the year-to-date.

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10:11 a.m. ET: Macy’s shares jump more than 18{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after topping 3Q results, raising guidance

Macy’s (M) became the latest retailer to exceed quarterly estimates this week, suggesting U.S. consumer spending was staying solid and foot traffic to department stores was rebounding more quickly than expected.

Macy’s owned plus licensed comparable same-store sales jumped by 35.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, exceeding the 33.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} growth rate expected, based on Bloomberg consensus data. The company also swung back to a profit, with adjusted earnings coming in at $1.23 per share, following a loss of 19 cents a share in the same quarter last year. Gross margins expanded by about 100 basis points, “driven by stronger regular price selling, fewer markdowns” that offset rising delivery costs, CEO Jeff Gennette said during the company’s earnings call.

“On the health of the customer, we definitely see that continuing,” Gennette added.

For the full year, Macy’s sees adjusted earnings coming in between $4.57 to $4.76 per share, marking a significant increase from its prior outlook for $3.41 to $3.75 a share.

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9:50 a.m. ET: Alibaba shares slide after missing earnings estimates, slashing guidance

Alibaba posted September quarter results and guidance that sharply missed estimates, with a slowing economic environment in China and efforts to contain the coronavirus in the region weighing on consumer spending on the e-commerce platform.

“Over the last 6 months, we have observed softer market conditions with slowing consumption growth in China,” Alibaba Chief Financial Officer Wei Wu said during the company’s earnings call Thursday. “Given slower-than-expected domestic consumption growth, since we provided our revenue guidance in May, we now expect our fiscal ’22 revenue growth to be 20-23{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} year-over-year.”

Consensus analysts were expecting full-year sales growth of 27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, based on Bloomberg data.

For Alibaba’s latest reported quarter, sales grew by a smaller-than-expected 29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to reach 200.7 billion yuan ($31.4 billion), whereas analysts were looking for 206.2 billion yuan. Adjusted earnings per American depository share were 11.20 yuan, also short of the 12.37 expected. The weakness was mostly contained to Alibaba’s core retail business, with its newer cloud computing business posting a 33{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise in revenue during the quarter.

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9:30 a.m. ET: Stocks mixed, tech leads Nasdaq higher

Here’s where markets were trading shortly after market open on Thursday:

S&P 500 (^GSPC): +8.82 (+0.19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,697.49
Dow (^DJI): -20.03 (-0.06{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,913.81
Nasdaq (^IXIC): +24.55 (+0.15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,941.73
Crude (CL=F): +$0.45 (+0.57{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $78.81 a barrel
Gold (GC=F): -$5.60 (-0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,864.60 per ounce
10-year Treasury (^TNX): unchanged to yield 1.6040{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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8:35 a.m. ET: Initial unemployment claims come in slightly higher-than-expected, but still reach fresh pandemic-era low

First-time unemployment claims narrowly set a new pandemic-era low last week, representing further steady progress in the labor market’s recovery as the number of those newly unemployed marched closer to pre-pandemic levels.

New unemployment claims came in at 268,000 during the week ended Nov. 13. This was down by a tick compared to the upwardly revised 269,000 reported for the previous week. Consensus economists were looking for new claims to come in at 260,000 for the latest period, according to Bloomberg data.

Continuing claims across regular state programs also came in at their lowest level since March 2020 at 2.080 million for the week ended Nov. 6. This was a bigger improvement than expected, since economists were looking for continuing claims to total 2.120 million.

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7:32 a.m. ET Thursday: Stock futures advance

Here’s where markets were trading Thursday morning:

S&P 500 futures (ES=F): +11.75 points (+0.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,696.00
Dow futures (YM=F): +34 points (+0.09{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,901.00
Nasdaq futures (NQ=F): +84.25 points (+0.52{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,395.75
Crude (CL=F): -$0.67 (-0.84{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $77.69 a barrel
Gold (GC=F): -$4.20 (-0.22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,866.00 per ounce
10-year Treasury (^TNX): -0.5 bps to yield 1.599{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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6:17 p.m. ET Wednesday: Stock futures open mixed

Here’s where markets were trading Wednesday evening:

S&P 500 futures (ES=F): +0.5 points (+0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,686.75
Dow futures (YM=F): -34 points (-0.09{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,833.00
Nasdaq futures (NQ=F): +18 points (+0.11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,329.5

A man walks past the New York Stock Exchange on Wall Street on May 10, 202 in New York City. - Wall Street stocks were mixed early May 10, 2021 ahead of key consumer price and retail sales data expected to influence the outlook for US monetary policy. Major stock indices closed at records Friday following a disappointing April jobs report that bolstered expectations the Federal Reserve will keep interest rates low for a long period of time to support the economic recovery. (Photo by Angela Weiss / AFP) (Photo by ANGELA WEISS/AFP via Getty Images) — A man walks past the New York Stock Exchange on Wall Street on May 10, 202 in New York City. – Wall Street stocks were mixed early May 10, 2021 ahead of key consumer price and retail sales data expected to influence the outlook for US monetary policy. Major stock indices closed at records Friday following a disappointing April jobs report that bolstered expectations the Federal Reserve will keep interest rates low for a long period of time to support the economic recovery. (Photo by Angela Weiss / AFP) (Photo by ANGELA WEISS/AFP via Getty Images)

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