Tag: earnings

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Stocks rise, tech shares rebound as traders look ahead to Fed, earnings

Stocks rise, tech shares rebound as traders look ahead to Fed, earnings

U.S. stocks turned higher in the first session of May following one of the worst monthly performances for the S&P 500 since the depths of the pandemic in 2020.

The S&P 500, Dow and Nasdaq turned positive in the final hour of trading on Monday. U.S. crude oil prices reversed earlier declines to hover above $105 per barrel, and the benchmark 10-year Treasury yield rose to 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, or its highest level since December 2018.

Investors this week are bracing for more potentially market-moving events to take place following April’s volatile stretch of trading. The S&P 500 sank by 8.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in April for its worst monthly performance since March 2020. Tech stocks especially were battered, and the Nasdaq Composite slid by 13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} last month for its worst since October 2008.

The Federal Reserve’s next monetary policy-setting meeting will be especially closely watched in the days ahead, with the central bank poised to release its latest policy statement and hold a press conference with Fed Chair Jerome Powell Wednesday afternoon. Market participants expect the Fed will raise rates by 50 basis points at the end of this meeting, marking the first rate hike of that magnitude since 2000. This would follow the 25 basis-point rate hike the Fed carried out in March, bringing the target range for the federal funds rate to between 0.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and 0.50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and raising the low end of the range above zero for the first time since March 2020.

The Fed is also expected to formally announce that it will begin quantitative tightening, or rolling assets off of its $9 trillion balance sheet. The central bank had scooped up assets and added to its balance sheet over the course of the pandemic as another means of helping support the virus-stricken economy. However, expectations for the undoing of this build have stirred up volatility after markets became accustomed to these easy money policies.

And with U.S. GDP growth turning negative for the first time since mid-2020 in the first quarter of this year, some pundits have begun to question whether the Fed will be able to tighten monetary policies without setting off a deeper downturn in economic activity.

“Recession risk has risen, and the financial health of the private sector may ultimately determine whether policy tightening will tilt the economy into a downturn,” Goldman Sachs Chief Economist Jan Hatzius wrote in a note Sunday. “Financial fragility in the private sector has historically amplified the impact of the headwinds confronting today’s expansion: higher interest rates, rapid wage inflation, and slowing growth.”

Meanwhile, earnings season will also press on this week, with a number of closely watched companies from Airbnb (ABNB) to Uber (UBER) and Lyft (LYFT) and Block Inc. (SQ) each reporting results. Heading into this week, 55{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of S&P 500 components had reported actual first-quarter results, and of these, 80{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} topped earnings per share estimates, while 72{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} exceeded revenue expectations, according to data from FactSet.

The expected earnings growth rate for S&P 500 companies in aggregate has also now risen to 7.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, up from the 4.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} seen at the end of March, FactSet noted. Still, if 7.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} remains the actual earnings growth rate for the index in the first quarter, it would mark the slowest rate since the fourth quarter of 2020.

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4:04 p.m. ET: Stocks rise into the close as tech shares rebound: Nasdaq gains 1.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, S&P 500 adds 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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

  • S&P 500 (^GSPC): +23.47 (+0.57{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,155.40

  • Dow (^DJI): +84.29 (+0.26{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,061.50

  • Nasdaq (^IXIC): +201.38 (+1.63{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 12,536.02

  • Crude (CL=F): +$0.90 (+0.86{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $105.59 a barrel

  • Gold (GC=F): -$49.00 (-2.56{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,862.70 per ounce

  • 10-year Treasury (^TNX): +10.9 bps to yield 2.9960{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

11:12 a.m. ET: U.S. manufacturing sector expansion unexpectedly slows in April to 20-month low: ISM

The U.S. manufacturing sector expansion unexpectedly slowed during the month of April, with ongoing supply chain and pricing pressures dragging on goods-producing firms’ output.

The Institution for Supply Management’s April manufacturing index dipped to a 20-month low of 55.4 from March’s 57.1. Consensus economists were looking for a reading of 57.6, according to Bloomberg data. Readings above the neutral level of 50.0 indicate expansion in a sector.

The decline “is mostly due to weakening demand amid a broader slowdown in global manufacturing, rather than a renewed supply crunch,” Michael Pearce, Capital Economics senior U.S. economist, wrote in a note. “Most of the weakness in the ISM appears to reflect softening demand, particularly from the rest of the world, rather than a renewed intensification of supply constraints.”

Beneath the headline index, employment saw one of the most marked drops, with the ISM manufacturing employment subindex declining to 50.9 in April from 56.3 in March. More encouragingly, however, the prices paid subindex declined to 84.6, indicating some moderating of inflationary pressures for manufacturers, even as the level remained high by historical standards.

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9:32 a.m. ET: Stocks open mixed

Here were the main moves in markets as of 9:32 a.m. ET:

  • S&P 500 (^GSPC): +3.80 (+0.09{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,135.73

  • Dow (^DJI): +80.64 (+0.24{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,057.85

  • Nasdaq (^IXIC): -6.49 (-0.05{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 12,328.15

  • Crude (CL=F): -$2.96 (-2.83{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $101.73 a barrel

  • Gold (GC=F): -$48.30 (-2.53{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,863.40 per ounce

  • 10-year Treasury (^TNX): +7.2 bps to yield 2.9590{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

7:43 a.m. ET Monday: Stock futures head for a higher open

Here’s where markets were trading Monday morning ahead of the opening bell:

  • S&P 500 futures (ES=F): +7.5 points (+0.18{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,135.00

  • Dow futures (YM=F): +89 points (+0.27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 32,971.00

  • Nasdaq futures (NQ=F): +27.75 points (+0.22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 12,879.75

  • Crude (CL=F): -$2.95 (-2.82{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $101.74 a barrel

  • Gold (GC=F): -$32.40 (-1.69{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,879.30 per ounce

  • 10-year Treasury (^TNX): +3.5 bps to yield 2.92{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

NEW YORK, NEW YORK - APRIL 28: Traders work on the floor of the New York Stock Exchange (NYSE) on April 28, 2022 in New York City. The Dow Jones Industrial Average was up in morning trading as markets continued to move through a period of volatility over inflation concerns and the war in Ukraine. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – APRIL 28: Traders work on the floor of the New York Stock Exchange (NYSE) on April 28, 2022 in New York City. The Dow Jones Industrial Average was up in morning trading as markets continued to move through a period of volatility over inflation concerns and the war in Ukraine. (Photo by Spencer Platt/Getty Images)

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

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Stocks resume losses ahead of Big Tech earnings

Stocks resume losses ahead of Big Tech earnings

U.S. stocks plummeted Tuesday, accelerating this month’s sell-off on Wall Street as investors weighed a flurry of corporate reports against a backdrop of inflationary pressures and concerns over an economic slowdown.

The S&P 500 fell 2.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to cap the session, while the Dow Jones Industrial Average shed 800 points, resuming losses after the index briefly recovered on Monday. The tech-heavy Nasdaq Composite tumbled nearly 4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, logging its third biggest drop of the year and marking its lowest close since December 2020. Meanwhile, U.S. Treasury yields retreated, with the 10-year benchmark falling to 2.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

“I do think this is going to continue to be a market where we might have one step forward, two steps back in terms of absorbing some of the headlines that we’re seeing,” JP Morgan Asset Management Global Market Strategist Meera Pandit told Yahoo Finance Live.

April has historically been a strong month for stocks, and has produced a positive return for the S&P 500 in 15 of the last 16 years, LPL Financial’s Ryan Detrick pointed out in a note earlier this month. This month, however, markets were wrought by Russia’s war in Ukraine, continued worries around the Federal Reserve’s rate hiking cycle, inflationary and supply chain pressures, and fears the culmination of these headwinds may result in an economic slowdown.

“We are seeing signs that growth is slowing, and there is talk of a recession in the next year or two,” Brad McMillan, Chief Investment Officer for Commonwealth Financial Network, said in an emailed note, adding however that what we have seen is a “typical, if sharper than usual, market cycle.”

“In the short term, it is painful, but in the longer term? It really doesn’t mean much,” McMillan said. “As long as the economy is basically healthy (which it is) and as long as policymakers are on top of things (which they are), companies will keep growing and making money.”

Investors are in the heart of earnings season, with the S&P 500’s most heavily-weighted components scheduled to report earnings results this week.

Google’s parent company Alphabet (GOOG, GOOGL) kicked off reporting from mega cap tech names, revealing first-quarter sales that were roughly in-line with estimates. The tech giant showed resilience in its key search and YouTube advertising businesses. Shares fell roughly 4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in extended trading.

Facebook parent company Meta (FB), Apple (AAPL), and Amazon (AMZN) are set to report quarterly results on Wednesday and Thursday.

As of Friday, one-fifth of companies in the index have reported results for the first quarter so far, with 79{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} reflecting an earnings beat for the period – above the five-year average of 77{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, according to the latest available data from FactSet. The magnitude of the earnings beat, however, is below the five-year average: 8.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, compared to 8.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

“The lower earnings growth rate for Q1 2022 relative to recent quarters can be attributed to both a difficult comparison to unusually high earnings growth in Q1 2021 and continuing macroeconomic headwind,” John Butters, a FactSet senior earnings analyst, said in a note.

U.S. stocks paralleled movements in global equity markets to start the week, with major stock indexes in Europe and Asia largely falling on renewed concerns a COVID outbreak in China may spur another wave of lockdowns and further disrupt global supply chains.

“I think the most interesting thing happening in China right now is not that the yuan’s moving and not that the economy’s slowing – it’s that everything that’s happening right now, we knew weeks ago,” China Beige Book CEO Leland Miller told Yahoo Finance Live. “We knew that the economy was slowing, we knew they were not going to stimulate in a big way, we knew that lockdowns were spreading from Shanghai to other big cities, we knew the Fed was hiking, we knew there’s a policy crackdown, so it is interesting that people are seeing today as a pivotal moment.”

Elsewhere in markets, shares of Twitter fell 4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, one day after the social media giant formally announced on Monday that it agreed to be acquired by Tesla CEO Elon Musk for $54.20 per share, or $44 billion. Twitter shareholders are set to receive $54.20 in cash for each share held, representing a 38{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} premium over Twitter’s closing level on April 1.

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4:00 p.m. ET: Stocks plunge, worsening April sell-off

Here were the main moves in markets at Tuesday’s close:

  • S&P 500 (^GSPC): -120.92 (-2.81{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,175.20

  • Dow (^DJI): -810.01 (-2.38{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,239.45

  • Nasdaq (^IXIC): -514.11 (-3.95{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 12,490.74

  • Crude (CL=F): +$3.57 (+3.62{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $102.11 a barrel

  • Gold (GC=F): +$5.60 (+0.30{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,901.60 per ounce

  • 10-year Treasury (^TNX): -5.4 bps to yield 2.7720{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

12:04 p.m. ET: S&P 500 falls 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, Dow erases 580 points, Nasdaq tumbles 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Here were the main moves in markets as of 12:04 p.m. ET:

  • S&P 500 (^GSPC): -86.24 (-2.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,209.88

  • Dow (^DJI): -572.31 (-1.68{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,477.15

  • Nasdaq (^IXIC): -408.91 (-3.14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 12,595.94

  • Crude (CL=F): +$3.05 (+3.10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $101.59 a barrel

  • Gold (GC=F): +$8.00 (+0.42{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,904.00 per ounce

  • 10-year Treasury (^TNX): -8.3 bps to yield 2.7430{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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9:30 a.m. ET: Stocks resume losses to extend April sell-off

Here’s where the main indexes were at the start of trading on Tuesday:

  • S&P 500 (^GSPC): -22.31 (-0.52{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,273.81

  • Dow (^DJI): -224.66 (-0.66{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,824.80

  • Nasdaq (^IXIC): +165.56 (+1.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,004.85

  • Crude (CL=F): +$1.65 (+1.67{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $100.19 a barrel

  • Gold (GC=F): +$10.90 (+0.57{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,906.90 per ounce

  • 10-year Treasury (^TNX): -7.7 bps to yield 2.7490{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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9:23 a.m ET: Home prices jump nearly 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} during February

Home price growth in the U.S. accelerated during the month of February, but a slowdown may be underway.

Standard & Poor’s reprted Tuesday that its S&P CoreLogic Case-Shiller national home price index registered a 19.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} gain during the second month of the year, up from 19.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in January. The figure marks the third-highest reading since the index was developed in the 1980s.

The 20-City results were higher than analysts’ expectations of an 19.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} annual gain, according to Bloomberg consensus estimates.

The 10-City Composite annual increase came in at 18.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, up from 17.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in the previous month. The 20-City Composite posted a 20.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} year-over-year gain, up from 18.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in the previous month.

“The macroeconomic environment is evolving rapidly and may not support extraordinary home price growth for much longer,” said Craig J. Lazzara, managing director and global head of index investment strategy at S&P DJI, in a statement. “The post-COVID resumption of general economic activity has stoked inflation, and the Federal Reserve has begun to increase interest rates in response.”

“We may soon begin to see the impact of increasing mortgage rates on home prices,” he added.

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9:09 a.m ET: PepsiCo ups full-year revenue forecast on higher prices, soda demand

PepsiCo (PEP) reported higher than expected quarterly earnings of $1.29 per share, beating the $1.23 per share analysts had expected, according to Bloomberg consensus data.

The beverage and snacks maker also raised its full-revenue forecast, buoyed by higher prices and a rebound in demand for its sodas at theaters and restaurants. Pepsi now anticipates fiscal 2022 organic revenue to rise 8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, compared with its forecast of a 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} increase.

During the quarter, the company also reported taking a $241 million charge related to Russia-Ukraine crisis.

“Looking ahead, we will focus on controlling what we can, such as enhancing our focus on productivity and sharpening our revenue management capabilities, while also continuing to make the necessary long-term investments to fortify our businesses and win in the marketplace,” PepsiCo CEO Ramon Laguarta said in the earnings release.

Shares of Pepsi were little changed in pre-market trading.

Pepsi cans are seen at the shop in this illustration photo taken in Krakow, Poland, on March 18, 2022. (Photo by Jakub Porzycki/NurPhoto via Getty Images)

Pepsi cans are seen at the shop in this illustration photo taken in Krakow, Poland, on March 18, 2022. (Photo by Jakub Porzycki/NurPhoto via Getty Images)

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7:10 a.m. ET: Futures slip after stocks recover from losses in previous session

Here were the main moves in futures trading ahead of Tuesday’s open:

  • S&P 500 futures (ES=F): -16.50 (-0.40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,276.25

  • Dow futures (YM=F): -130.00 (-0.38{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,835.00

  • Nasdaq futures (NQ=F): -62.50 (-0.46{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,473.25

  • Crude (CL=F): -$0.35 (-0.36{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $98.89

  • Gold (GC=F): +$12.70 (+0.67{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,908.70 per ounce

  • 10-year Treasury (^TNX): 0.00 bps to yield 2.8260{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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6:15 p.m. ET Monday: Stock futures muted ahead of earnings reports mega cap earnings

Here’s were stock futures were in post-market trading Monday evening:

  • S&P 500 futures (ES=F): -1.75 (-0.04{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,291.00

  • Dow futures (YM=F): -10.00 (-0.03{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,955.00

  • Nasdaq futures (NQ=F): -19.50 (-0.14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,516.25

  • Crude (CL=F): -$0.10 (-0.00{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $98.66

  • Gold (GC=F): +$3.20 (+0.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,899.20 per ounce

  • 10-year Treasury (^TNX): -8 bps to yield 2.8260{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

Read the latest financial and business news from Yahoo Finance

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Stocks recover to end 3-day losing streak as traders look ahead to Big Tech earnings; Nasdaq gains 1.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Stocks recover to end 3-day losing streak as traders look ahead to Big Tech earnings; Nasdaq gains 1.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

U.S. stocks ended higher Monday, erasing earlier losses in the day as concerns over an escalating COVID outbreak in China added to jitters over U.S. economic growth in the face of heightened inflation and monetary policy tightening.

The S&P 500 rose by 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to reach 4,296.12. The Dow added more than 200 points, or 0.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, to settle at 34,049.46, and the Nasdaq Composite rose by 1.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to close just above 13,000. U.S. stocks bucked the trend of global equity markets, with the major stock indexes in Europe and Asia largely falling on Monday. U.S. Treasury yields dipped, and the benchmark 10-year yield hovered just above 2.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

West Texas intermediate crude oil futures fell below $100 per barrel, with fears over the economic impact of broadening virus-related restrictions throughout China mounting. Beijing saw a spike in COVID cases over the weekend that prompted more mandatory testing and some lockdowns in the region. And this came as other populous cities including Shanghai have also recently grappled with fresh waves of infections, even as the country works to abolish the virus under a zero-COVID policy.

In a note published last week, Bank of America economist Helen Qiao slashed her forecast for China’s gross domestic product (GDP) growth to 4.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from 4.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for 2022 as the number of lockdowns throughout the country increased.

“COVID-19 lockdowns and restrictions imposed in Shanghai and neighboring cities are not only hitting local demand but also causing logistic breakdowns and widespread supply-chain disruptions within and outside of the area,” Qiao wrote in the note published April 19. “In our view, even if such control measures will ultimately be rolled back and economic activities will gradually normalize by mid-year, a heavy toll on growth already seems inevitable.”

Meanwhile, investors have also been grappling with reassertions from Federal Reserve officials last week that the central bank would be taking a tough stance on reining in inflation. Fed Chair Jerome Powell as well as San Francisco Fed President Mary Daly were among the latest to suggest they saw the case for 50 basis point interest rate hikes this year. These larger-than-typical increases would front-load the Fed’s monetary policy response to inflation in the near-term.

“Mr. Powell once again highlighted the Fed’s focus on elevated prices and the need for policy to move towards neutral to restore price stability. His comments pretty much confirm market expectations of a 50-basis-point hike at the May 3-4 FOMC meeting, which would be the first such move since 2000,” Rubeela Farooqi, chief U.S. economist at High Frequency Economics, wrote in a note. “While Mr. Powell did not comment on the trajectory of policy beyond the May FOMC meeting, other Fed officials — including San Francisco President Daly and Chicago President Evans — have said that a couple of 50-basis-point hikes are possible this year.”

Though Federal Reserve officials are in a quiet period this week ahead of the central bank’s meeting next week, a packed slate of corporate earnings results will pull investors’ attention. In the coming days, a bevy of major companies and stock index components will post results, including Alphabet (GOOGL), Meta Platforms (FB), Apple (AAPL) and Amazon (AMZN).

As of Friday, about one-fifth of S&P 500 companies had reported their actual first-quarter results. Of these, 79{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} topped Wall Street’s earnings estimates, while 69{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} exceeded sales expectations, according to data from FactSet’s senior earnings analyst John Butters. The expected earnings growth rate for the index stood at 6.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} heading into this week, which if carried through the end of reporting season, would mark the slowest growth rate since the fourth quarter of 2020, Butters noted.

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4:03 p.m. ET: Stocks recover to end 3-day losing streak as traders look ahead to Big Tech earnings: Nasdaq gains 1.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Here were the main moves in markets as of 4:03 p.m. ET:

  • S&P 500 (^GSPC): +24.34 (+0.57{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,296.12

  • Dow (^DJI): +238.06 (+0.70{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,049.46

  • Nasdaq (^IXIC): +165.56 (+1.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,004.85

  • Crude (CL=F): -$2.92 (-2.86{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $99.15 a barrel

  • Gold (GC=F): -$34.70 (-1.79{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,899.60 per ounce

  • 10-year Treasury (^TNX): -8 bps to yield 2.8260{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

2:54 p.m. ET: Twitter announces it will be acquired by Elon Musk

Twitter formally announced it agreed to be purchased by Tesla CEO Elon Musk for $54.20 per share, or $44 billion.

Twitter shareholders are set to each receive $54.20 in cash for each share held, representing a 38{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} premium over Twitter’s closing level on April 1.

“Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated,” Musk said in a press statement. “I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans. Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it.”

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12:42 p.m. ET: S&P 500, Dow hold lower, Nasdaq pares some earlier declines

The three major stock indexes traded mostly lower Monday afternoon, though the tech-heavy Nasdaq pared most earlier losses to trade near the flat-line after 12 p.m. ET.

Shares of Chevron, Verizon and Dow Inc. led declines in the Dow Jones Industrial Average, which dropped 0.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} Monday afternoon. In the S&P 500, the energy, materials and utilities sectors lagged, and communication services was the only sector in the green.

The CBOE Volatility Index, or VIX, spiked more than 8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to top 31 for the highest level since March 15.

—

9:31 a.m. ET: Stocks open lower

Here’s where stocks were trading just after the opening bell Monday morning:

  • S&P 500 (^GSPC): -38.31 (-0.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,233.47

  • Dow (^DJI): -278.52 (-0.82{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,532.88

  • Nasdaq (^IXIC): -86.85 (-0.68{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 12,757.91

  • Crude (CL=F): -$5.32 (-5.21{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $96.75 a barrel

  • Gold (GC=F): -$31.40 (-1.62{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,902.90 per ounce

  • 10-year Treasury (^TNX): -9.8 bps to yield 2.808{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

7:13 a.m. ET: Coca-Cola tops 1Q expectations

Coca-Cola (KO) reported first-quarter sales and profit that topped Wall Street’s estimates, with broad growth across the beverage giant’s portfolio of brands helping lift results.

Adjusted operating revenue grew 16{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over last year to reach $10.5 billion, topping consensus expectations for $9.8 billion, according to Bloomberg data. Company-wide unit case volume — a closely watched measure for Coca-Cola — rose 8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, with growth coming most prominently from the company’s nutrition, juice, dairy and plant-based beverages segment, where unit case volume increased 12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. On the bottom line, comparable earnings per share reached 64 cents versus the 58 cents expected.

For the full year, Coca-Cola said it expects its to see commodity price inflation be in the mid-single digit percentages. It also expected the suspension of its business in Russia to generate a 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} impact to full-year unit case volume, and a 1-2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} impact on net revenues and operating income.

—

7:06 a.m. ET: Stock futures decline, adding to last week’s losses

Here’s where stocks were trading Monday morning:

  • S&P 500 futures (ES=F): -36.25 (-0.85{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,231.00

  • Dow futures (YM=F): -270 (-0.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,458.00

  • Nasdaq futures (NQ=F): -106.75 (-0.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,246.75

  • Crude (CL=F): -$4.73 (-4.63{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $97.34

  • Gold (GC=F): -$23.10 (-1.19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,911.20 per ounce

  • 10-year Treasury (^TNX): -6.9 bps to yield 2.837{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

NEW YORK, NEW YORK - MARCH 30: Traders work on the floor of the New York Stock Exchange on March 30, 2022 in New York City. U.S. stocks opened low after rallying to start the week. (Photo by Michael M. Santiago/Getty Images)

NEW YORK, NEW YORK – MARCH 30: Traders work on the floor of the New York Stock Exchange on March 30, 2022 in New York City. U.S. stocks opened low after rallying to start the week. (Photo by Michael M. Santiago/Getty Images)

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

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Stocks rebound to close higher as investors weigh flurry of earnings reports

Stocks rebound to close higher as investors weigh flurry of earnings reports

U.S. stocks rallied Tuesday, clawing back from a rough start to the week as investors assessed a deluge of earnings reports for clues on how corporate America has fared against a backdrop of war in Eastern Europe and rising inflationary pressures.

[Click here to read what’s moving markets heading into Wednesday, April 20] 

The S&P 500 advanced 1.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to mark its best day in a month, and the Dow Jones Industrial Average closed the session out 500 points higher. The tech-heavy Nasdaq Composite extended gains to 2.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after settling at a one-month low on Monday along with the S&P 500.

Meanwhile, Treasury yields continued their climb, with the 10-year U.S. benchmark hitting 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for the first time in three years.

“The bond market, you could argue, is way out ahead of the Fed in a way the stock market is playing wait-and-see,” Interactive Brokers’ chief strategist Steve Sosnick told Yahoo Finance Live on Tuesday. “Maybe the stock market is actually, in this case, saying ‘I’m not going to fight the Fed,’ and the bond market in fact is.”

The International Monetary Fund (IMF) said Tuesday that the global economic recovery will “slow significantly” this year due to Russia’s invasion of Ukraine. IMF officials downgraded their forecasts for economic growth, projecting global GDP will rise 3.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in 2022 (a downgrade from January’s projection of 4.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) and another 3.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in 2023 (also a downgrade from the last projection of 3.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}).

“This crisis unfolds while the global economy was on a mending path but had not yet fully recovered from the COVID-19 pandemic,” said IMF Economic Counsellor Pierre-Olivier Gourinchas.

Quarterly results from 69 companies in the S&P 500 are in the queue for investors to digest through Friday. Big names on the docket of earnings set for release this week include United Airlines (UAL), American Express (AXP) and Tesla (TSLA).

Netflix (NFLX) — the first tech giant to report earnings this week — revealed an unexpected drop in net subscribers, a closely-watched metric for investors, in its results out Tuesday after the bell. The subscriber losses, the first for the company in over a decade, came as Netflix navigated an exit from Russia and an increasingly saturated North American market.

Netflix shares cratered nearly 22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in post-market trading to $272.40 a piece as of 4:11 p.m. ET.

As of Monday (the latest available data), 53{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of 34 S&P 500 companies (comprising 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of index earnings) that have reported so far beat on both sales and earnings per share, Bank of America’s research team pointed out, slightly better than the typical Week 1 beat rate of 47{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and last quarter’s Week 1 rate of 50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The institution expects a first quarter EPS beat of 4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} but anticipates downside risks to the full year 2022 estimates, which imply earnings accelerating every quarter into next year.

“Pressure on profit margins from higher costs for virtually everything, notably labor, materials, and transportation, made this quarter difficult to navigate,” LPL Financial strategists Jeff Buchbinder and Ryan Detrick said in commentary Monday. “Add spillover from the Russia-Ukraine conflict and intermittent COVID-19 lockdowns in China, and companies’ bottom lines are getting hit from several directions.”

“Despite the tough environment, we believe the odds favor companies beating estimates as they have done historically on the back of double-digit revenue growth,” Buchbinder and Detrick added. “High inflation translates into more revenue so earnings can grow at a solid pace even with some narrowing of profit margins.”

Contrary to BofA, research from FactSet suggests that although analysts have tempered their expectations on first quarter earnings, lowering bottom-up EPS forecasts in aggregate for Q1 by 0.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from $52.21 to $51.83, EPS forecasts for the second, third, and fourth quarters are higher. Earnings estimates for all of 2022 have also risen 2.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} this year to $228.50 per share.

“The number one takeaway for investors should be to watch how your stock reacts more than the news,” Heritage Capital President Paul Schatz told Yahoo Finance Live. “If your stock rallies on bad news, that’s a pretty good sign the markets have absorbed and digested and have priced in the bad news.”

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4:12 p.m. ET: Netflix reports subscriber loss for first time in more than 10 years

Streaming giant Netflix (NFLX) reported an unexpected drop in first-quarter net subscribers, a closely-watched metric for investors. The subscriber losses — the first for the company in over a decade — came as Netflix navigated an exit from Russia and an increasingly saturated North American market.

Netflix shares cratered nearly 22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in post-market trading to $272.40 a piece as of 4:11 p.m. ET.

The drop in new users came as a surprise to Wall Street, with analysts looking for a slowdown but still positive growth in subscriptions during the fiscal first quarter. Subscribers grew by nearly 4 million in the same quarter last year. And in total, Netflix had more than 220 million global subscribers as of the end of last quarter.

—

4:00 p.m. ET: S&P 500, Dow, and Nasdaq gain as earnings season ramps up

Here’s how the major indexes capped the trading session following an up day on Wall Street:

  • S&P 500 (^GSPC): +70.79 (+1.61{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,462.48

  • Dow (^DJI): +501.19 (+1.46{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,912.88

  • Nasdaq (^IXIC): +287.30 (+2.15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,619.66

  • Crude (CL=F): -$5.53 (-5.11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $102.68 a barrel

  • Gold (GC=F): -$36.60 (-1.84{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,949.80 per ounce

  • 10-year Treasury (^TNX): +5.1 bps to yield 2.9130{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

3:16 p.m. ET: Johnson & Johnson rescinds vax sales forecast amid lower demand

Johnson & Johnson (JNJ) dialed back its forecast for COVID-19 vaccine sales due to a glut of supply over hesitancy in low income countries.

The company previously projected sales of up to $3.5 billion on the single-dose shot in 2022, but demand has waned.

Use of the shot has been weak in high-income countries, hurt by reports of rare, potentially deadly blood clots, production issues, including an accidental mix-up of ingredients by a contract manufacturer, and concerns about efficacy.

Shares of Johnson & Johnson were up 3.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $183.45 a piece as of 3:15 p.m. ET.

—

1:49 p.m. ET: All three major indexes advance more than 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} with earnings underway

Here were the main moves in markets during intraday trading:

  • S&P 500 (^GSPC): +51.23 (+1.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,442.92

  • Dow (^DJI): +368.87 (+1.07{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,780.56

  • Nasdaq (^IXIC): +220.18 (+1.65{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,552.54

  • Crude (CL=F): -$5.14 (-4.75{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $103.07 a barrel

  • Gold (GC=F): -$28.70 (-1.44{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,957.70 per ounce

  • 10-year Treasury (^TNX): +4.1 bps to yield 2.9030{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

11:16 a.m. ET: Investors await earnings report from Netflix after the bell

Netflix (NFLX) is set to report quarterly after market close. Investors are bracing for a further growth slowdown amid the company’s exit from Russia and as its key North American market grows increasingly saturated.

Wall Street expects Netflix will report revenue of $7.95 billion for the fiscal first quarter, earnings per share of $2.91, and net subscriber additions of 2.51 million.

If realized, new subscribers of 2.51 million would represent the smallest quarterly addition for Netflix since the second quarter of 2021. Subscribers grew by nearly 4 million in the same quarter last year, and in total, Netflix had more than 220 million global subscribers as of the end of last quarter.

Netflix has been grappling with slowing user growth for much of the past year, with new users slowing to a trickle after a pandemic-fueled surge in sign-ups. But further exacerbating this slowdown will be Netflix’s exit from Russia in early March, which came following the country’s invasion of Ukraine earlier this year. Cowen analyst John Blackledge estimated Russia comprised about 1 million subscribers for Netflix.

Shares of Netflix were up 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} during intraday trading to $347.99 per share as of 11:16 a.m. ET.

—

9:33 a.m. ET: Stocks flat as investors digest earnings, downgraded IMF forecast

Here’s where the main indexes were trading during Tuesday’s opening bell:

  • S&P 500 (^GSPC): +3.54 (+0.08{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,395.23

  • Dow (^DJI): +92.77 (+0.27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,504.46

  • Nasdaq (^IXIC): -18.72 (-0.14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,332.36

  • Crude (CL=F): -$3.38 (-3.12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $104.83 a barrel

  • Gold (GC=F): -$22.50 (-1.13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,963.90 per ounce

  • 10-year Treasury (^TNX): +4.3 bps to yield 2.9050{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

9:08 a.m. ET: IMF says Russia-Ukraine war will cause global economy to ‘slow significantly’

The International Monetary Fund (IMF) said the global economic recovery will “slow significantly” this year due to Russia’s invasion of Ukraine.

The IMF downgraded growth prospects in Eastern European countries but also warned that countries around the world will be affected by the disruption to commodities markets as a result of the war. The international body now expects global GDP, a measure of economic growth, to rise 3.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in 2022 (a downgrade from January’s projection of 4.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) and another 3.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in 2023 (also a downgrade from the last projection of 3.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}).

“This crisis unfolds while the global economy was on a mending path but had not yet fully recovered from the COVID-19 pandemic,” said IMF Economic Counsellor Pierre-Olivier Gourinchas.

Russia saw the largest downgrade in the IMF report, with the country’s economy now expected to contract by 8.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} this year (compared to the 2.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} growth it had projected prior to the invasion).

—

8:58 a.m. ET: Housing starts rise, building permits increase in March

U.S. homebuilding activity picked up unexpectedly last month, but starts for single-family housing fell amid rising mortgage rates.

The Commerce Department reported housing starts registered an increase of 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in March to a seasonally adjusted annual rate of 1.793 million units last month. February data was revised higher to a rate of 1.788 million units from the previously reported 1.769 million units. Bloomberg economists had forecast starts slipping to a rate of 1.740 million units.

Permits for future homebuilding increased 0.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to a rate of 1.873 million units last month.

The 30-year fixed-rate mortgage averaged 5.0{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} during the week ended April 14, the highest since February 2011, up from 4.72{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in the prior week, per mortgage finance agency Freddie Mac. Further increases are expected as the Federal Reserve moves forward on its monetary tightening plans.

“Mortgage rates are flying ever higher, but residential construction of single-family homes started this month are solid and home builders are not heading for the exits yet,” FWDBONDS chief economist Christopher S. Rupkey said in a note. “At some point, housing starts will fall this year as the market is on a collision course for buyers with rising prices and higher costs of borrowing.”

Residential single family homes construction by KB Home are shown under construction in the community of Valley Center, California, U.S. June 3, 2021. REUTERS/Mike Blake

Residential single family homes construction by KB Home are shown under construction in the community of Valley Center, California, U.S. June 3, 2021. REUTERS/Mike Blake

—

7:10 a.m. ET: Stock futures near breakeven, Treasury yield grazes 2.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Here’s how the main benchmarks fared in pre-market trading Tuesday:

  • S&P 500 futures (ES=F): -2.75 points (-0.06{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,384.00

  • Dow futures (YM=F): -2.00 points (-0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,311.00

  • Nasdaq futures (NQ=F): -18.25 points (-0.13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,889.50

  • Crude (CL=F): -$1.59 (-1.47{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $106.62 a barrel

  • Gold (GC=F): -$5.00 (-0.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,981.40 per ounce

  • 10-year Treasury (^TNX): +0.00 bps to yield 2.8620{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

6:13 p.m. ET Monday: Futures jump as earnings season sets into full swing

Here were the main moves in markets heading into overnight futures trading Monday:

  • S&P 500 futures (ES=F): +14.25 points (+0.32{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,401.00

  • Dow futures (YM=F): +104.00 points (+0.30{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,417.00

  • Nasdaq futures (NQ=F): +59.50 points (+0.43{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,967.25

  • Crude (CL=F): -$0.77 (-0.71{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $107.44 a barrel

  • Gold (GC=F): -$4.90 (-0.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,981.50 per ounce

  • 10-year Treasury (^TNX): +3.4 bps to yield 2.8620{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

A trader works on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., April 11, 2022. REUTERS/Andrew Kelly

A trader works on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., April 11, 2022. REUTERS/Andrew Kelly

—

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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Stocks rise to end three-day losing streak as traders eye earnings

Stocks rise to end three-day losing streak as traders eye earnings

U.S. stocks gained on Wednesday as investors monitored a series of closely watched earnings reports and further digested a hot print on inflation in the U.S.

[Click here to read what’s moving markets on Thursday, April 4]

The S&P 500 jumped by more than 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, ending a three-day losing streak. The Nasdaq Composite outperformed and rose 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} as technology shares jumped and Treasury yields pulled back across the curve.

Investors received a number of quarterly reports from some major U.S. companies and stock index components early Wednesday morning. These included JPMorgan Chase (JPM) — the largest U.S. bank by assets — along with Delta Air Lines (DAL) and Bed, Bath & Beyond (BBBY).

JPMorgan Chase CEO Jamie Dimon offered a cautiously upbeat view of the U.S. economy in the bank’s earnings release on Wednesday. Dimon noted that he remained “optimistic on the economy, at least for the short term,” but still sees “significant geopolitical and economic challenges ahead due to high inflation, supply chain issues and the war in Ukraine.” And the bank also built up its credit reserves by a net $902 million, “largely due to higher probabilities of downside risk,” Dimon said.

Meanwhile, Delta Air Lines, one of the major airlines at the center of the reopening trade, suggested business would pick up further in the current quarter even as first-quarter results showed another loss, as the airline grappled with the omicron variant wave earlier this year. The carrier returned to profitability in the month of March, Delta noted, and noted that revenue is expected to reach between 92{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and 97{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of pre-pandemic levels during the current quarter ended in June.

This early set of earnings reports helped set the tone for what is expected to ultimately be a much milder quarter for earnings growth than in recent periods. As companies grapple with rising labor, raw material and transportation costs and lap last year’s initial reopening-fueled jump in activity, many on Wall Street are looking for narrower margins than in recent quarters, even as sales hold up strongly amid elevated consumer demand and rising prices. Across the S&P 500, companies in aggregate are expected to report year-over-year earnings growth of just 4.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, which if realized, would mark the slowest rate since the fourth quarter of 2020, according to FactSet.

“This earnings season becomes one of the most important earnings seasons because it’s going to give you a lot of insight into which companies … have that durable demand, which companies have that pricing power,” Kristen Bitterly, Citi head of global wealth investments, told Yahoo Finance Live on Tuesday.

“Even in decades like the 1970s, when we had extreme inflation, large-cap quality U.S. equity shares were able to double their share price over that period,” she added. “So that’s the pocket of the market where we’re confidently either staying invested or getting invested.”

And indeed, inflation has remained a primary concern for investors, threatening to weigh further on both consumers’ wallets and corporate profits. The Bureau of Labor Statistics’ March Consumer Price Index (CPI) showed inflation rose at the fastest rate since late 1981 last month, jumping by a slightly faster-than-expected 8.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over last year.

However, some economists suggested the report was not all bad news, and showed some tentative signs of a peak in the rate of price increases.

“The CPI report I think actually has a little bit more good news in it than it appears right on the surface … there’re a number of things in here that suggests that we’re starting to see inflation peak, and it will roll over in the next few months,” Tom Simmons, Jefferies fixed income money market economist, told Yahoo Finance Live on Tuesday. “[It’s] important to keep in mind that CPI, for March, the reference period here was right after the Russian invasion of Ukraine. So really, it’s capturing the most acute period of gasoline price increases. And we’ve seen them already starting to soften in the market a little bit in the few weeks since.”

“The other thing is that services ex-energy — and if you strip out the airline component — that was actually a little bit softer as well than the last few months,” he added. “Housing actually came in a little bit softer in the last few months as well, and goods ex-energy also are coming in a little bit softer as well. So you know, the consumer has been pretty well able to weather the storm here with inflation.”

—

4:05 p.m. ET: Stocks close higher, Nasdaq gains 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Here’s where stocks closed out Wednesday’s session:

  • S&P 500 (^GSPC): +49.14 (+1.12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,46.59

  • Dow (^DJI): +344.23 (+1.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,564.59

  • Nasdaq (^IXIC): +272.02 (+2.03{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,643.59

  • Crude (CL=F): +$3.62 (+3.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $104.22 a barrel

  • Gold (GC=F): +$5.10 (+0.26{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,981.20 per ounce

  • 10-year Treasury (^TNX): -3 bps to yield 2.697{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

1:03 p.m. ET: Bed Bath & Beyond shares turn positive despite surprise quarterly loss

Shares of Bed Bath & Beyond (BBBY) gained intraday on Wednesday, shaking off early losses of as much as 12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after the retailer posted an unexpected loss for its fiscal fourth quarter and missed sales expectations.

Adjusted losses were 92 cents a share, whereas Wall Street analysts were looking for earnings of 13 cents a share during the holiday shopping season. Comparable sales were also down 12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, or more than the 8.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} drop anticipated, based on Bloomberg consensus data.

“We are disappointed that our sales and gross margin performance does not reflect our team’s hard work and execution against both strategic and transformation efforts in 2021,” the company’s CEO Mark Tritton said in the quarterly report’s press release.

“Macroeconomic factors, such as the disruption of the global supply chain, the Omicron variant, as well as the geopolitical turbulence weighing on consumer confidence, have uncovered more vulnerabilities than we could have foreseen at this stage of our transformation, as we completely rebuild the foundation of our business,” he added.

—

11:21 a.m. ET: Peloton shares gain after activist investor Blackwells Capital calls for sale

Peloton (PTON) shares rose Wednesday after activist investment firm Blackwells Capital issued a new call for the connected fitness company to be sold.

“Peloton is a strategically valuable asset that is attractive to many potential acquirers,” according to Blackwells Capital’s slide deck. “An insightful and capable operator would be willing to pay a premium beyond conventional cost and revenue synergies for the opportunity to ‘Reimagine Peloton’ as a dramatically different business than it is today.”

Jason Aintabi, chief investment officer of Blackwells, also doubled down on his criticism of Peloton’s former CEO John Foley, who remains on the board as executive chairman.

“Peloton will continue to be poorly valued for as long as a close-knit group of insiders, who have proven themselves incapable of creating value, continue to wield voting power far in excess of their economic interest,” Aintabi said in a statement. “No shareholder should want Mr. Foley to still sit atop the management pyramid or control the Board through his super voting-stock. He lost his entitlement to both positions when he destroyed $40 billion of shareholder wealth in less than a year.”

—

9:31 a.m. ET: Stocks look for direction

Here were the main moves in markets as of 9:31 a.m. ET:

  • S&P 500 (^GSPC): -4.23 (-0.10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,393.22

  • Dow (^DJI): -32.30 (-0.09{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,188.06

  • Nasdaq (^IXIC): -9.23 (-0.07{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,362.34

  • Crude (CL=F): +$1.44 (+1.43{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $102.04 a barrel

  • Gold (GC=F): +$5.20 (+0.26{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,981.30 per ounce

  • 10-year Treasury (^TNX): -2.6 bps to yield 2.6990{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

8:50 a.m. ET: Producer prices hit new high

U.S. producer prices for final demand rose 1.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in March after rising 0.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in February, the Labor Department said on Wednesday. For the full year, PPI jumped 11.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} — the biggest gain since the 12-month data was calculated in November 2010. The results superseded estimates of 10.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, according to Bloomberg consensus.

The latest print suggests inflation will remain elevated as Russia’s war on the Ukraine rages on and pushes prices of oil and other commodities higher.

—

7:20 a.m. ET: Stock futures rise amid earnings

Here’s where stocks were trading Wednesday morning:

  • S&P 500 futures (ES=F): +26.5 points (+0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,419.50

  • Dow futures (YM=F): +172 points (+0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,311.00

  • Nasdaq futures (NQ=F): +110.75 points (+0.79{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,055.75

  • Crude (CL=F): +$1.45 (+1.44{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $102.05 a barrel

  • Gold (GC=F): +$4.20 (+0.21{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,980.30 per ounce

  • 10-year Treasury (^TNX): +0.6 bps to yield 2.733{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

7:03 a.m. ET: JPMorgan posts mixed Q1 results as investment banking revenue slides over last year

JPMorgan Chase posted a mixed first-quarter results, with overall adjusted revenue topping Wall Street’s estimates while some major businesses within the bank showed some softening.

Adjusted revenue of $31.6 billion dropped 4.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over last year but exceeded consensus estimates for $31.4 billion, according to Bloomberg data. Both fixed income and equity sales and trading revenue topped expectations while declining compared to last year, with these coming out to about $5.7 billion and $3.1 billion, respectively. Investment banking revenue, however, sank by a more marked 28{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and missed estimates, totaling $2.06 billion as equity and debt underwriting activity decreased at the start of this year compared to last.

CEO Jamie Dimon also noted that the banks core lending business remained solid during the quarter.

“Lending strength continued with average firmwide loans up 5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} while credit losses are still at historically low levels,” Dimon said in the earnings release.

—

6:50 a.m. ET: Delta shares rise after airline posts narrower-than-expected Q1 loss, returns to profitability in March

Delta Air Lines shares moved higher in the pre-market session after the airline posted estimates-topping first-quarter results, which included a smaller-than-expected loss.

Adjusted losses came out to $1.23 per share for the March quarter, or narrower than the $1.26 per share loss consensus analysts expected, according to Bloomberg data. Adjusted revenue was $8.2 billion, and was 79{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} recovered compared to levels from the comparable quarter in 2019 before the pandemic. Capacity was 83{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} restored relative to the pre-pandemic period, Delta added.

For the current quarter ending in June, Delta said it expects capacity to further rebound to 84{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of June quarter 2019 levels, with total revenue between 93{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and 97{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of levels from that period in 2019.

“With a strong rebound in demand as omicron faded, we returned to profitability in the month of March, producing a solid adjusted operating margin of almost 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a},” Delta CEO Ed Bastian said in the company’s earnings release Wednesday morning. “As our brand preference and demand momentum grow, we are successfully recapturing higher fuel prices, driving our outlook for a 12 to 14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} adjusted operating margin and strong free cash flow in the June quarter.”

—

6:10 p.m. ET Tuesday: Stock futures head for a lower open

Here’s where markets were trading Tuesday evening before the opening bell:

  • S&P 500 futures (ES=F): +4.25 points (+0.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,397.25

  • Dow futures (YM=F): +33 points (+0.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,172.00

  • Nasdaq futures (NQ=F): +17.75 points (+0.13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,962.75

NEW YORK, NEW YORK - APRIL 12: Traders work on the floor of the New York Stock Exchange during afternoon trading on April 12, 2022 in New York City. Data released this morning showed that inflation rose 8.5 percent in March, the highest annual increase since December 1981, amid energy prices soaring due to Russia's war in Ukraine. (Photo by Michael M. Santiago/Getty Images)

NEW YORK, NEW YORK – APRIL 12: Traders work on the floor of the New York Stock Exchange during afternoon trading on April 12, 2022 in New York City. Data released this morning showed that inflation rose 8.5 percent in March, the highest annual increase since December 1981, amid energy prices soaring due to Russia’s war in Ukraine. (Photo by Michael M. Santiago/Getty Images)

—

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

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Corporate America’s strong earnings into 2022 is good news for stocks: strategist

Corporate America’s strong earnings into 2022 is good news for stocks: strategist

Central bank jitters and intensifying geopolitical tensions have pummeled fairness marketplaces in new months and sent the S&P 500 into correction territory Tuesday for the to start with time in two yrs. But irrespective of a turbulent get started to 2022, sturdy earnings momentum stays a tailwind for shares.

The S&P 500 Index is on speed to conquer the consensus estimate for earnings per share at $208 as firms finish logging fourth-quarter outcomes. The determine is 22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} better than the EPS of $170 analysts had projected heading into past yr, according to knowledge from LPL Financial.

Quantities this earnings time have been great, even with no taking into consideration that the bar has been lifted continually throughout the pandemic, according to LPL equity strategist Jeff Buchbinder. The firm’s research reflects S&P 500 earnings per share monitoring to a 31{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} calendar year-above-yr raise, about 10 proportion factors previously mentioned the consensus estimate when earnings season started.

“Earnings progress approaching 30{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, even though slower than the third quarter’s close to-40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} clip, would be extraordinary given the hard working setting,” Buchbinder claimed in a research take note.

LPL Financial's research indicates S&P 500 earnings per share are tracking to a 31{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} year-over-year increase, about 10 percentage points above the consensus estimate when earnings season began.

LPL Financial’s study suggests S&P 500 earnings for every share are tracking to a 31{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} 12 months-above-calendar year boost, about 10 share details previously mentioned the consensus estimate when earnings season began.

Even with about 75 corporations tracked by the benchmark continue to established to report, earnings energy and resilient revenue margins have helped firms mainly defeat forecasts, LPL indicated. A mixture of robust financial development, restocking of inventory and increased rates due to inflation helped corporations notch 2021 fourth quarter revenue of 15.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, 3 share factors previously mentioned estimates.

Buchbinder also notes the 15.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} revenue advancement is greater than any quarter for the duration of the earlier economic growth concerning 2009-2020, but was topped by restoration progress in the next and third quarters of 2021, pursuing the easing of COVID-19 lockdowns.

In addition to solid revenue, Buchbinder reported income margins are only anticipated to see a slight downtick quarter-around-quarter when results are all in, but the decrease is probably to be much less considerable than predicted amid increasing the prices of labor, materials and energy.

“That slight possible dip from the 3rd quarter to the fourth doesn’t acquire absent from the point that margins very last 12 months were being large,” he wrote. “Companies are taking pleasure in pricing power, which is assisting them go alongside greater costs, notably wages, and largely protect individuals superior margins that are properly over pre-pandemic levels.”

The probability of considerably less-severe-than predicted margin compression can make LPL’s 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}-7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} earnings development forecast for 2022 attainable. While inflationary pressures and source chain challenges will very likely persist via the initially fifty percent of the year, the consensus estimate for 2022 S&P 500 EPS rose .5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} through earnings season, more than the average 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}-3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} reduction witnessed historically, according to LPL.

“While it may possibly acquire extra time for the market to change its aim toward good firm fundamentals and get a lot more cozy with the inflation outlook, we count on shares to recover early-year losses and rally back again to new highs by 12 months-finish as that transition can take position,” Buchbinder explained.

—

Alexandra Semenova is a reporter for Yahoo Finance. Adhere to her on Twitter @alexandraandnyc

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