Stocks rallied on Thursday with the Dow major marketplaces increased as final results from Salesforce (CRM) lifted the index, and the S&P 500 and Nasdaq shook off early losses to finish in the eco-friendly.
At the near on Thursday, the S&P 500 was up .76{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, the Nasdaq better by .73{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, and the blue chip Dow up 1.05{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
Premiums remained a crucial concentration for investors, with the generate on the 10-yr Treasury be aware settling north of 4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, its highest amount given that November.
The rise in yields has appear as investors brace for a lot more aggressive motion from the Federal Reserve in the coming months as inflation stays elevated and the financial state remains solid.
On the front finish of the Treasury curve, the yield on 2-yr notes continued to trade around its highest degree due to the fact 2007. The 2-year yield, which stood in close proximity to 4.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on Thursday, is viewed as the very best proxy for trader expectations of the Fed’s near-term path for curiosity premiums.
In solitary-inventory moves, shares of Salesforce rose 11.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on Thursday as traders cheered the company’s most recent quarterly report, which saw the embattled Dow member double down on cost-cutting initiatives and shareholder return designs. The stock’s opening gap higher of 16{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} was its most significant considering the fact that Aug. 2020, in accordance to details from Bloomberg.
In an job interview with Yahoo Finance’s Brian Sozzi late Wednesday, Salesforce CEO Marc Benioff claimed in reference to the firm’s efficiency initiatives: “We have hit the hyper-place button.”
The corporation declared in its quarterly report an maximize in its share repurchase authorization to $20 billion, with COO Brian Millham telling buyers on a call, “We are inspecting every portion of our company to come across chances to drive efficiencies and minimize charge of income, advertising, and G&A.”
Chairman and Co-CEO of Salesforce Marc Benioff attends a session at the 50th World Financial Discussion board (WEF) annual assembly in Davos, Switzerland, January 21, 2020. REUTERS/Denis Balibouse
Salesforce’s 11.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} soar, fantastic for jsut about a $19 per share boost in the stock rate, extra around 110 points to the selling price-weighted Dow’s 340 point achieve on Thursday.
Elsewhere in single-stock moves, shares of troubled financial institution Silvergate (SI) fell 57{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on Thursday just after the firm delayed the filing of its yearly report and mentioned it would very likely report losses much larger than individuals beforehand disclosed.
The financial institution took on many high-profile crypto consumers in current several years and has noticed its share price tag collapse by more than 90{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in the wake of the failure of FTX, among the other crypto bankruptcies.
Tesla (TSLA) shares have been also in concentration on Thursday, slipping 5.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} as the electrical carmaker held its newest investor working day on Wednesday, which uncovered few new products facts but emphasised the company’s thrust to unlock new efficiencies in its producing and style and design processes.
On the financial info aspect, the weekly report on first jobless statements confirmed 190,000 new filings for unemployment insurance were created past week, the hottest indication the labor market place stays robust. However tomorrow marks the to start with Friday of the month, the February work opportunities report will not be launched until finally March 10.
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Thursday, December 29, 2022
Today’s e-newsletter is by Jared Blikre, a reporter concentrated on the marketplaces on Yahoo Finance. Abide by him on Twitter @SPYJared. Read this and extra sector information on the go with Yahoo Finance App.
Stocks offered off on Wednesday, with the Nasdaq Composite underperforming the Dow Jones Industrial Common but again — a trend that encapsulates the greatest challenge of the investing year.
The Nasdaq is down 35{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} so much in 2022, though the Dow is off much less than 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. And this Dow outperformance relative to the tech index is by much the largest gap due to the fact the dot-com bubble peaked and unwound from 2000 to 2002.
Dow vs. Nasdaq – 1971 to Present
The explanation is comparatively straightforward: The Fed is aggressively fighting inflation, which has clobbered tech and development stocks this 12 months. In the meantime, energy names soared for most of 2022, whilst cyclical and defensive sectors like wellness treatment, industrials, elements, staples saw trader interest decide up in the fourth quarter.
For quite a few buyers, 2022 may well only look to be an aberration, a pit cease on the Fed’s track back to minimal desire premiums, or what numerous traders now picture is the norm after a 10 years of file small rates.
The imagining goes that once the Fed nips inflation in the bud, the central bank can restart the minimal desire charge incubator that launched hundreds of high-progress tech winners over the very last ten years-furthermore as inexpensive funds fueled land grabs for market place share in new industries.
Marketplaces are pricing in a Fed that lastly cools on its level hiking programs in 2023 — but that will not automatically mean a return to the prior buying and selling regime. With geopolitical threat on the rise — and COVID problems back again in the headlines — the fight about inflation could turn out to be a multi-12 months affair, bleeding into the 2nd 50 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of this ten years.
If that’s the scenario, cyclical and defensive names could be the place to camp out for a couple of decades.
And if the traits in the market place each in 2022 and the year’s final quarter are everything to go by, it looks some investors are catching on to this way of thinking.
Look at the 12 months-to-date effectiveness of the best 25 S&P 500 elements by market cap to their respective quarter-to-day efficiency.
S&P 500 Largest 25 Shares – YTD General performance
Darkish purple dominates the yr to date returns — specifically amid the huge cap names like Apple (AAPL), Microsoft (MSFT), and Alphabet (GOOGL).
Amazon (AMZN) has misplaced just around 50 {1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} its benefit this calendar year, though Tesla (TSLA) and Meta Platforms (META) have witnessed their sector value minimize by two-thirds, pushing them outdoors the top rated 10 most significant stocks in the index right after owning crossed the $1 trillion mark past 12 months.
All of these prior names — preserve for Microsoft — are sporting deep crimson returns for the quarter as very well, which highlights the problems in relying on past winners this cycle.
And the outperformers are instructive, with Warren Buffett’s Berkshire Hathaway (BRK-A, BRK-B) up 13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for the quarter. Inspite of its outsized keeping in Apple inventory, Berkshire hasn’t been held again from gains this calendar year many thanks to its profitable economical, industrial, and electrical power holdings.
Wellbeing treatment, financials, electricity, and client staples corporations are all very well-represented among the winners in the fourth quarter. Top rated performers include JPMorgan Chase (JPM), Merck (MRK), Exxon Mobil (XOM), and Proctor & Gamble (PG) — all up 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} or extra.
S&P 500 Largest 25 Stocks – QTD Effectiveness
Quick forward a year, and the management board will without doubt look quite different. But a return to the status quo of the 2010s is almost certainly off the table.
The obstacle for a lot of investors running in modern market is that sustained outperformance by value and cyclical stocks over advancement stocks has not been found in a generation.
Most buyers simply have no memory of the very last time this dynamic took hold, and consequently, no reference point for a time when tech was not the inventory market’s pre-eminent sector.
This leaves the table set for an additional year — or probably quite a few — which appears to be decidedly compared with anything at all we’ve viewed in many years.
What to Watch Currently
Financial state
8:30 a.m. ET: Initial Jobless Statements, 7 days ended Dec. 24 (225,000 envisioned, 216,000 all through prior 7 days)
8:30 a.m. ET: Continuing Claims, 7 days finished Dec. 17 (1.706 million predicted, 1.672 million through prior week)
Earnings
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The Dow Jones Industrial Average set another closing record on Tuesday at 36,799.65 points after upbeat economic data powered the index forward as investors bet on a strong recovery. Tech stocks faltered to drag the Nasdaq down 1.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in its biggest decline since December, and the S&P 500 was mostly unchanged.
Investors mulled a trove of new prints out of Washington, including a fresh read on the ISM Manufacturing Index and the Labor Department’s latest job openings.
Releases from ISM showed manufacturing slowed in December on a cool down in demand for goods, but that supply chain constraints are starting to ease. On the employment side, data showed demand for workers was historically high again in November, with a record 4.5 million Americans quitting their jobs as labor shortages continue to strain employers, though the impact of the latest virus wave has yet to show.
“Looking ahead, the Omicron variant wave will likely lead to some short-term weakness in the labor market,” Sam Bullard, senior economist for Wells Fargo, wrote in a note published earlier this week. “However, we believe this will be temporary and that the pace of hiring should pick back up by the spring.”
Despite a mixed day, markets have made headway overall, picking up right where they left off in a banner 2021 to trade near all time highs into the new year. The pace of that momentum, however, remains at the helm of the Federal Reserve as it gears up for potential rate hikes as soon as this quarter to deal with rising inflation.
Market veteran Jim Bianco of his eponymous firm Bianco Research told Yahoo Finance’s Brian Sozzi in a sit-down interview that the central bank’s measures pose the biggest threat to the red-hot rally in equities.
“I think that is the number one risk right now in 2022,” he said, adding that high inflation is likely to be persistent and can push the Fed hard to do something. “In the process of doing something about it, it puts the rally of the stock market at risk.”
Managing Partner Ted Oakley told Yahoo Finance Live that the Federal Reserve “turned political on us.”
“As soon as the inflation numbers had gone up, I think the administration had pressed them not to worry as much about the market,” he said.
Automakers led headlines on Tuesday, with shares of Ford Motor Company (F) surging more than 11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in afternoon trading at its highest level in two decades to close at $24.31 after the company said it would nearly double annual production capacity for its popular F-150 Lightning electric pickup to 150,000 vehicles.
The move comes as Ford’s competition with rival General Motors (GM) in the electric vehicle race heats up, with GM set to unveil its own electric truck on Wednesday. GM closed up at a record high of 7.47{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $65.74.
Meanwhile, General Motors was ousted by Japanese carmaker Toyota Motor Corp (T) as the leader in U.S. sales for the first time in nearly a century. Toyota sold 2.332 million vehicles in the United States in 2021, beating 2.218 million for General Motors, the companies reported on Tuesday. GM’s U.S. sales slumped 13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for 2021, while Toyota was up 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
Shares of Toyota closed 6.92{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} higher on Tuesday at $199.19 a piece.
4:01 p.m. ET: Dow powers on to set second-straight closing record
Here’s how market closed out Tuesday’s session:
S&P 500 (^GSPC): -3.03 (-0.06{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,793.53
Dow (^DJI): +214.39 (+0.59{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 36,799.45
Nasdaq (^IXIC): -210.08 (-1.33{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,622.72
Crude (CL=F): +$0.95 (+1.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $77.03 a barrel
Gold (GC=F): +$14.70 (+0.82{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,814.80 per ounce
10-year Treasury (^TNX): +4 bps to yield 1.6680{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
Among the most heavily-allocated picks in her portfolio posting declines during the session were Tesla (TSLA), down 3.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $1,160.25; Teladoc Health (TDOC), which shed 6.08{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $89.30, and Zoom Communications (ZM), tumbling 5.69{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 173.77.
ARKK was down 5.64 in the early afternoon, slumping lower from a challenging 2021 that saw declines for the exchange-traded fund of more than 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
Wood recently promised her strategy could deliver a 40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} compound annual rate of return during the next five years — a projection she later tweaked to a lower, however still-lofty 30{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}-40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after criticism of her statement.
Ark Innovation’s top holdings took a beating during intraday trading on Tuesday, positioning the popular ETF managed by Cathie Wood’s Ark invest for a rough start to the new year.
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11:20 a.m. ET: Apple turns red after reaching $3 trillion milestone
Shares of Apple (AAPL) dipped more than 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} during midday trading after the iPhone-maker rallied in Monday’s session toward a $3 trillion market capitalization.
The decline contributed to losses in the Nasdaq as the index pared Monday’s gains to edge 1.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} lower, shedding 280 points.
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11:07 a.m. ET: Toyota dethrones GM as No. 1 automaker
Japanese carmaker Toyota Motor Corp (T) topped General Motors Co (GM) in U.S. sales last year, unseating the Detroit-based vehicle company as the country’s leader in auto sales for the first time in nearly a century.
Toyota sold 2.332 million vehicles in the United States in 2021, beating 2.218 million for General Motors, the companies reported on Tuesday. GM’s U.S. sales slumped 13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for 2021, while Toyota was up 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. In 2020, GM’s U.S. sales totaled 2.55 million, compared with Toyota’s 2.11 million and Ford’s 2.04 million.
Shares of GM were up more than 5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in morning trading to $64.25 a piece. Toyota was up nearly the same amount, trading 4.92{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} higher at $195.45.
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10:21 a.m. ET: Manufacturing slips amid lower demand for goods
The Institute for Supply Management (ISM) reported its latest index of national factory activity fell in to 58.7 last month, signaling a cooling demand for goods.
December’s print came in below consensus estimates of 60.2 and lower than the previous month’s read of 61.1, according to Bloomberg Data. Readings above 50 indicate an expansion in manufacturing
Meanwhile, data showed that supply chain constraints are starting to ease. The ISM survey’s measure of supplier deliveries declined to 64.9 from 72.2 in November, with prints above 50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} suggesting slower deliveries to factories.
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10:05 a.m. ET: Job openings hold near a record high
Demand for workers remained historically high in November, pointing to continued labor shortages that have strained employers.
The Department of Labor reported 10.562 million job openings in November in a fresh read out Tuesday on its Labor Turnover Summary (JOLTS).The figure came in below October’s print of 11.033, based on the government’s first estimate for the month. Consensus economist estimates pointed to a 11.079 million in November, according to Bloomberg data.
The data does not yet meaningfully capture the impact of rising cases of COVID on employment in the latest wave of the virus. Some economists suggested labor shortages may be worsened in the near-term due to the latest surge.
“Looking ahead, the Omicron variant wave will likely lead to some short-term weakness in the labor market,” Sam Bullard, senior economist for Wells Fargo, wrote in a note published earlier this week. “However, we believe this will be temporary and that the pace of hiring should pick back up by the spring.”
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9:54 a.m. ET: Ford gets a move on EV truck production
Ford Motor Company (F) plans to nearly double annual production capacity for its popular F-150 Lightning electric pickup to 150,000 vehicles to keep up with a surge in demand ahead of its arrival at U.S. dealers this spring, the company said on Tuesday.
The model has attracted nearly 200,000 reservations already, far outpacing the automaker’s initial production capacity for 70,000-80,000 vehicles.
Ford’s announcement comes as its electric truck vehicle race heats up with competitor General Motors Co (GM), which is scheduled to unveil the Chevrolet Silverado electric pickup on Wednesday set to go on sale in early 2023.
Shares of Ford climbed 6.64{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} at open to $23.22 a piece. Rival GM was also up 2.56{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $63.73 per share.
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9:30 a.m. ET: Markets charge forward into second straight day of gains
Here’s what happened in the markets at the start of the day’s trading session:
S&P 500 (^GSPC): +15.07 (+0.31{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,811.63
Dow (^DJI): +182.71 (+0.50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 36,767.77
Nasdaq (^IXIC): +4.23 (+0.03{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,837.03
Crude (CL=F): +$0.47 (+0.62{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $76.55 a barrel
Gold (GC=F): +$8.30 (+0.46{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,808.40 per ounce
10-year Treasury (^TNX): +4.4 bps to yield 1.6720{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
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7:33 a.m. ET: Stock futures point to continued gains
Here’s how contracts on the major indexes fared before market open:
S&P 500futures (ES=F): +17.00 points (+0.36{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,803.00
Dow futures (YM=F): +120.00 points (+0.33{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 36,575.00
Nasdaq futures (NQ=F): +52.50 points (+0.32{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,538.00
Crude (CL=F): +$0.11 (+0.14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $76.19 a barrel
Gold (GC=F): +1.10 (+0.06{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,801.20 per ounce
10-year Treasury (^TNX): 1.628 bps to yield 0.00{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
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6:02 p.m. Monday ET: Stock futures quietly open after record-setting session
Here were the main moves in markets heading into the overnight session:
S&P 500futures (ES=F): -0.50 points (-0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,785.50
Dow futures (YM=F): -29.00 points (-0.08{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 36,426.00
Nasdaq futures (NQ=F): +16.25 points (+0.10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,501.75
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
Read the latest financial and business news from Yahoo Finance
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
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}
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)
U.S. stocks plunged on Friday, with global markets rattled by a new coronavirus variant discovered in South Africa, which fanned concerns that new growth-crushing lockdowns could be imposed if the variant spreads widely.
Trading volumes were low due to the Thanksgiving holiday in the U.S., which may have exacerbated the volatility.
However, major benchmarks fell sharply during the holiday-shortened session, with the Dow (^DJI) diving by more than 900 points — logging its worst day of the year and its third worst Thanksgiving selloff ever. Meanwhile, S&P 500 (^GSPC) sank by over 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, its biggest drop since February, and the Nasdaq (^IXIC) also fell sharply, but its losses were partly contained by a rally in stay-at-home stocks.
A new coronavirus variant has been discovered in South Africa, leading to an emergency session of the World Health Organization. Dubbed “Omicron,” scientists say the new B.1.1.529 strain is a concern, because it harbors a large number of mutations found in other variants — including the fast-spreading Delta variant that exploded over much of the summer — and it seems to be rapidly spreading.
While there’s no evidence yet, health officials are worried that the mutating variant could dilute or resist the efficacy of vaccines.
“It goes without saying that it’s still too early to say exactly how big a threat the new B.1.1.529 strain poses to the global economy,” Neil Shearing, Group Chief Economist at Capital Economics, said in a note.
Still, “the lesson from the past couple of years is that it’s the restrictions that are imposed in response to the virus – rather than the virus itself – that causes the bulk of the economic damage. So, the key question is how governments will respond in the event that the B.1.1.529 strain spreads,” Shearling wrote.
“That in turn will hinge on the extent to which it escapes the vaccines and, importantly, causes strains in national healthcare systems,” he added — underscoring that governments in the U.S. and U.K. had taken a “learn to live with the virus” approach, and thus are far less likely than other regions to impose new restrictions.
BioNTech (BNTX) said on Friday it expects more data on the new coronavirus variant in South Africa within two weeks to help its shots should be reworked, and that the company and Pfizer (PFE) — its vaccine partner — could redesign its vaccine within 6 weeks, with an aim to distribute it within 100 days.
Pfizer surged as much as 8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to record, signaling that the new variant could create demand for the vaccine.
While fears of COVID-19 dominated investors’ attention for much of 2020 and 2021, Pfizer confirms it could make variant vaccine in 100 days with the ability to make four billion doses in the first 12 months, according to Citi analyst Andrew Baum.
Travel and leisure-related stocks were among those hit the hardest early Friday, with Carnival Corp (CCL) and Royal Caribbean (RCL) down by 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in premarket trading. United Airlines (UAL), Delta Air Lines (DAL) and American Airlines were down each 7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} each. Boeing slipped 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Marriott International and Hilton Worldwide fell more than 5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
Travel platform Expedia (EXPE) was the fifth-worst performer in the S&P 500, dropping by 11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} during the shortened trading day, while home sharing site Airbnb (ABNB) was down more than 5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
On the flip side, stay-at-home stocks gained Zoom (ZM) up 9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, while Netflix (NFLX) bounded higher by 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
Oil prices also swooned to the lowest levels in more than two months Friday sparking fears about a slowdown in demand.
U.S. oil dropped 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} its the worst day since April 2020, with U.S. crude futures down 6.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $73.57 per barrel on perceived fears of falling demand amid the new variant.
Bond yields have also fallen as the market’s inflation fears temporarily gave way to the desire for safe-haven assets. The yield on the benchmark 10-year U.S. Treasury note was down to 1.53{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after closing at 1.63{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on Wednesday.
“We’re still in a place where yields are so low that the safe haven of bonds isn’t as safe as it looks,” ProShares’ Simeon Hyman told Yahoo Finance Live on Friday. “You’re making not that much today on that little bit of rally in treasuries, so it’s a tough spot.”
Banks, which benefit from the higher interest rates, were broadly weaker as bond yields declined. Bank of America sinks 5.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, Wells Fargo drops 6.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, Citigroup loses 4.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, JPMorgan declines 4.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, Goldman Sachs sheds 3.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and Morgan Stanley tumbled 4.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
__
1:00 p.m. ET: Stocks slump on Black Friday, as new variant spooks investors
Here were the main moves in markets as of 1:00 p.m. ET:
S&P 500 (^GSPC): -106.65 (-2.27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,594.81
Dow (^DJI): -903.59 (-2.52{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,900.79
Nasdaq (^IXIC): -353.57 (-2.23{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,491.66
Crude (CL=F): +$9.73 (-12.41{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $68.66 a barrel
Gold (GC=F): -$1.10 (-0.06{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,785.40 per ounce
10-year Treasury (^TNX): -1.4 bps to yield 1.54{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
11:15 a.m. ET: Carnival, travel slumps on fears of South African Covid variant
Cruise lines stocks continues to retreat as covid fears swelled. Carnival Corp (CCL) shed more than 12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, while Royal Caribbean (RCL) sunk more than 11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
11:10 a.m. ET: Stocks slump midday
Here’s where markets were trading midday:
S&P 500 (^GSPC): -93.46 (-1.99{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,608.00
Dow (^DJI): -913.69 (-2.55{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,890.69
Nasdaq (^IXIC): -318.08 (-2.02{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,523.46
Crude (CL=F): -$9.24 (-11.79{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $69.15 a barrel
Gold (GC=F): $13.30 (0.75{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,797.60 per ounce
10-year Treasury (^TNX): -1.49 bps to yield 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
10:30 a.m. ET: The end of the interest rate differential play?
Friday’s decidedly risk-off tone is calling into question the level of aggressiveness with which the Federal Reserve may pull back on its stimulus. Only a day ago, some thought the rapid surge in prices could prompt the Fed to speed up a taper — or even hike rates faster.
What a difference a day makes. Marc Chandler at Bannockburn Global FX, pointed out in a research note that the rise of a new variant is scrambling Fed expectations versus the European Central Bank and the Bank of Japan:
The dollar’s rally has been fueled by the prospect of a divergence of monetary policy that favored the Fed over the ECB and BOJ. Indeed, since the November 10 surprise jump in the October CPI to above 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, we had emphasized the likelihood that the Fed would have to taper quicker to give it the flexibility to lift rates earlier if needed. Since then, 4-5 Fed officials and several large banks have also underscored this possibility. However, this scenario is being called into question today, which is evident in the swaps markets and the Fed funds futures.
9:30 a.m. ET: Stocks open sink
Here’s where markets were trading just before the opening bell:
S&P 500 (^GSPC): -66.85 (-1.42{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,634.61
Dow (^DJI): -848.78 (-2.37{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,955.60
Nasdaq (^IXIC): -133.91 (-0.83{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,708.01
Crude (CL=F): -$5.34 (-6.81{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $73.05 a barrel
Gold (GC=F): $21.20 (1.19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,805.50 per ounce
10-year Treasury (^TNX): -1.52 bps to yield 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
NEW YORK, NEW YORK – SEPTEMBER 30: Traders work on the floor of the New York Stock Exchange (NYSE) on September 30, 2021 in New York City. In afternoon trading the Dow was down over 250 points as investors continue to worry about inflation, wages and supply chain issues. (Photo by Spencer Platt/Getty Images)
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
