Inventory futures opened increased Thursday night as buyers took in earnings results from some key tech firms at the finish of a different risky 7 days.
Contracts on the S&P 500 received. Dow futures also highly developed,as part inventory Apple (AAPL) jumped in late investing after the Apple iphone-maker documented document quarterly revenue and superior-than-predicted profits inspite of supply chain issues. Meanwhile, Robinhood (HOOD) shares sank soon after the trading system missed on quarterly revenue, posted a much larger-than-expected quarterly drop in end users, and made available disappointing steering.
The S&P 500 was on monitor to put up a weekly decline of about 1.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, centered on Thursday’s closing selling prices. New reports showing a greater-than-expected rise in fourth-quarter U.S. GDP and enhancement in weekly jobless promises did very little to assistance switch shares all around throughout Thursday’s session. The Dow and Nasdaq have every also fallen more than the training course of the earlier week, with volatility climbing as traders regarded as the implications of the Federal Reserve’s much more hawkish monetary policy tilt for marketplaces.
“The markets digested this hawkish Fed pivot that I assume astonished folks in terms of its magnitude,” Scott Crowe, CenterSquare Financial investment Management chief financial investment strategist, informed Yahoo Finance Dwell on Thursday. “It wasn’t so extensive ago that they had been describing inflation as ‘transitory,’ but now they have their sights firmly established on moderating inflation. And I consider that is given the marketplace a good deal of indigestion as it begins to digest that rather dramatic change.”
Federal Reserve Chair Jerome Powell strongly signaled earlier this 7 days that a March liftoff on curiosity rates to earlier mentioned their existing close to-zero levels was in the cards. Even so, other issues remained — specifically all around just how immediately the Fed will raise fascination fees, and all over when and how rapidly the Fed will get started drawing down its approximately $9 trillion balance sheet and tightening money circumstances.
“All the things the Fed is accomplishing at this point we feel has just been priced in in excess of the final couple months. And that’s where by a great deal of the slide in the market place has appear from,” Morgan Stanley Controlling Director Kathy Entwistle told Yahoo Finance Stay on Thursday. “And the big query is, will we slide a minor little bit much more? What’s occurring?”
“We’re seeking at corporations and their earnings … to figure out whether or not or not we’re heading to have a very little little bit additional of a pullback in the sector or not,” she additional. “And that’s primarily based on what they can do heading forward, the place their possibilities are. And we’ve been listening to a ton about inflation. If you assume about a 7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} inflation price, that’s really sizeable.”
“Back again in the slide, it was the retail trader that was keeping up the sector,” Entwistle explained. “And now, their sentiments have form of turned and they are no for a longer time optimistic about exactly where we are right now. So I consider we have to think about all of these things. We do imagine that the high quality, yet again, is going to do far better than growth.”
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6:15 p.m. ET Thursday: Inventory futures bounce after Apple earnings
Here’s exactly where futures started investing Thursday night:
S&P 500 futures (ES=F): +30 points (+.69{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,347.75
Dow futures (YM=F): +169 factors (+.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,212.00
Nasdaq futures (NQ=F): +169 factors (+1.21{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,155.75
Picture by: NDZ/STAR MAX/IPx 2022 1/24/22 People stroll previous the New York Inventory Trade (NYSE) on Wall Street on January 24, 2022 in New York.
Stocks ended sharply higher Wednesday afternoon as investors mulled the Federal Reserve’s final monetary policy decision of 2021, which came against a backdrop of persistent inflationary pressures.
The S&P 500 and Dow turned positive after spending much of the trading day earlier in the red. The Nasdaq outperformed to add more than 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Bond yields rose, and the benchmark 10-year Treasury yield added more than 3 basis points to rise rise above 1.47{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} immediately following the Fed’s 2 p.m. monetary policy decision.
All eyes on Wednesday were on the Federal Reserve’s monetary policy statement. In this, the Fed announced it was speeding the withdrawal of its crisis-era stimulus programs. The Fed ramped up the rate of tapering of its asset purchasing program to $30 billion per month.
Previously, the Fed’s asset purchasing program took place at a rate of $120 billion per month in combined Treasuries and agency mortgage-backed securities from the start of the pandemic through November. Last month, the Fed began dialing back these purchases by $15 billion, and announced another $15 billion reduction for December.
The Federal Reserve’s updated Summary of Economic Projections, or so-called “dot plot,” also showed the likelihood of several interest rate hikes next year. The updated projections showed the median member of the Federal Open Market Committee expected three rate hikes in 2022, followed by as many as four hikes in 2023 and as many as two in 2024. This charted out a quicker cadence of rate hikes than projected in the Fed’s September dot plot.
The firming economic recovery and soaring inflation has given the central bank room for a more hawkish tilt to policy. Last week’s Consumer Price Index showed the fastest surge in U.S. consumer prices since 1982 on a year-over-year basis in November. And on Tuesday, the U.S. Producer Price Index jumped by the most on record at a 9.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} year-over-year increase for last month.
The Federal Reserve’s latest statement suggested officials were taking note of the rising prices.
“Supply and demand imbalances related to the pandemic and the reopening of the economy have continued to contribute to elevated levels of inflation,” according to the statement.
A number of strategists noted the trading activity in recent sessions and weeks reflected the market already pricing in a more hawkish Fed. Software and other growth names were some of the biggest laggards in the major indexes during Tuesday’s session, and the Nasdaq dropped more than 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} during the trading day.
“When you have an anticipation of higher interest rates, growth stocks or long-duration growth stocks certainly get hit the hardest,” Art Hogan, national chief market strategist, told Yahoo Finance Live on Tuesday. “When you do that net present value calculation with a higher interest rate, that implied multiple or ascribed multiple to growth names comes in. So a lot of that’s been priced in. When you think about some of those real growth-y names and momentum names and risk assets, they’ve seen a lot of carnage.”
“What the market is trying to tell us here is that when you set your asset allocation plan for next year, you want to have a barbell approach with growth on one side — you want to have those growth names that are actually valued at a multiple to earnings, not a multiple to revenues or a multiple to cash flows or a multiple to sales,” he added. “We anticipate 2022 is going to be very much like 2021, where you really want to have a balance between growth and value.”
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4:03 p.m. ET: Tech stocks lead indexes higher following Fed decision: S&P 500 gains 1.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, Dow adds 383 points, or 1.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
Here were the main moves in markets as of 4:03 p.m. ET:
S&P 500 (^GSPC): +75.77 (+1.64{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,709.86
Dow (^DJI): +383.38 (+1.08{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,927.56
Nasdaq (^IXIC): +327.94 (+2.15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,565.58
Crude (CL=F): +$0.86 (+1.22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $71.59 a barrel
Gold (GC=F): +$7.10 (+0.40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,779.40 per ounce
10-year Treasury (^TNX): +2.5 bps to yield 1.4630{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
Here’s a snapshot of how markets were trading Wednesday afternoon following the Federal Reserve’s latest monetary policy statement and projection materials.
S&P 500 (^GSPC): +21.61 (+0.47{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,655.70
Dow (^DJI): +142.76 (+0.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,686.94
Nasdaq (^IXIC): +58.47 (+0.38{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,295.27
Crude (CL=F): -$0.25 (-0.35{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $70.48 a barrel
Gold (GC=F): -$10.00 (-0.56{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,762.30 per ounce
10-year Treasury (^TNX): +2.3 bps to yield 1.462{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
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11:51 a.m. ET: Pfizer shares set record high as company awaits COVID-19 pill authorization
Shares of Pfizer (PFE) jumped to a fresh record intraday high on Wednesday amid optimism over the company’s COVID-19 pill, called Paxlovid. President Joe Biden said Tuesday that the White House had ordered enough of the antiviral pills to treat 10 million Americans, and that he was “encouraged by the promising data” that the drug-maker released on the pill. Pfizer’s data showed earlier this week that the drug decreased the risk of hospitalization or death by 89{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for high-risk adults.
Pfizer’s stock was up more than 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to trade above $57 per share Wednesday afternoon, and paced toward a fifth straight day of gains. The stock has risen 56{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for the year-to-date.
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11:10 a.m. ET: Amazon Web Services sees connectivity issues, impacting Twitch, other platforms
Amazon’s web hosting platform Amazon Web Services (AWS) experienced connectivity issues Wednesday morning, triggering outages at platforms from Zoom Video Communications to Amazon-owned Twitch and other online services.
As of 10:42 a.m. ET, more than 20,000 outages were reported on DownDetector. Amazon Web Services said on its status page Wednesday that it was still investigating connection issues in Northern California and Oregon as of late morning Eastern Time.
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9:30 a.m. ET: Stocks open flat
Here’s where markets were trading as of 9:30 a.m. ET:
S&P 500 (^GSPC): +4.04 (+0.09{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,638.13
Dow (^DJI): +1.87 (+0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,546.05
Nasdaq (^IXIC): -5.75 (-0.04{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,919.00
Crude (CL=F): -$0.54 (-0.76{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $70.19 a barrel
Gold (GC=F): -$1.60 (-0.09{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,770.70 per ounce
10-year Treasury (^TNX): +3.8 bps to yield 1.467{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
—
8:30 a.m. ET: Retail sales rose 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in November, missing estimates
U.S. retail sales rose at a slower-than-expected rate in November after a jump in October, as electronics and department store retailers’ sales especially dropped during the month.
Retail sales were up 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in November compared to October, the Commerce Department said on Wednesday. This came in below the 0.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} monthly increase consensus economists were expecting, according to Bloomberg-compiled data. In October, retail sales rose 1.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, which was upwardly revised from the 1.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} increase previously expected.
By category, department stores saw one of the biggest sales drops during the month with a decline of 5.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. General merchandise store sales more broadly declined 1.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Electronics and appliance store sales fell by 4.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, and health and personal care store sales were down 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
“I see this more as a sign that Americans started their holiday shopping early, as opposed to bad news for retailers,” Ted Rossman, senior industry analyst at CreditCards.com, wrote in an email Wednesday morning. He noted that on a year-over-year basis, retail sales were still up 18.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
“That year-over-year comparison is more significant, and it illustrates robust expansion,” he added.
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7:26 a.m. ET Wednesday: Stock futures drift
Here’s where markets were trading ahead of the opening bell on Wednesday:
S&P 500 futures (ES=F): +0.25 points (+0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,637.25
Dow futures (YM=F): +12 points (+0.03{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,564.00
Nasdaq futures (NQ=F): -11.5 points (-0.07{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,913.25
Crude (CL=F): -$0.87 (-1.23{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $69.86 a barrel
Gold (GC=F): -$2.00 (-0.11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,770.30 per ounce
10-year Treasury (^TNX): +0.9 bps to yield 1.448{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
—
6:24 p.m. ET Tuesday: Stock futures edge up ahead of Fed decision
Here were the main moves in markets as the overnight session kicked off on Tuesday:
S&P 500 futures (ES=F): +2.25 points (+0.05{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,639.25
Dow futures (YM=F): +25 points (+0.07{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,577.00
Nasdaq futures (NQ=F): +12.25 points (+0.08{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,937.00
NEW YORK, NEW YORK – DECEMBER 13: Traders work on the floor of the New York Stock Exchange (NYSE) on December 13, 2021 in New York City. As investors are still concerned about rising prices due to inflation, the Dow Jones Industrial Average dropped 175 points in Monday morning trading. (Photo by Spencer Platt/Getty Images)
Stocks turned lower Wednesday afternoon as more hawkish remarks from Federal Reserve Chair Jerome Powell compounded with concerns around the Omicron variant and its impacts on the economy. The S&P 500, Dow and Nasdaq each erased earlier gains to dip into the red.
The Centers for Disease Prevention and Control said Wednesday it identified the first confirmed case of the Omicron variant in the U.S.
The Centers for Disease Prevention and Control said Wednesday it identified the first confirmed case of the Omicron variant in the U.S.
Stocks cut gains after CNN first reported the news around 1:45 p.m. ET, citing an unnamed person familiar with the matter. The U.S. joined more than two dozen other countries in reporting at least one case of the Omicron variant, which was first identified last week by scientists in South Africa.
The latest development renewed concerns about the potential impact of the new variant for the domestic economy. A day earlier Moderna (MRNA) CEO Stephane Bancel told the Financial Times that the company’s current COVID-19 vaccine would likely see a “material drop” in effectiveness against Omicron, but that more data was still needed on the variant.
This commentary, as well as ongoing uncertainty over the transmissibility and severity of disease caused by the new variant, also contributed to the broader market slide seen on Tuesday.
“The market doesn’t like an information vacuum, and now we have two,” Thomas Hayes, Great Hill Capital Chairman, told Yahoo Finance Live. “Not only did we have the CEO of Moderna expressing concern that his vaccines may not have full coverage for Omicron, but then you had Powell throw this … wrench into the mix at the hearing saying that maybe we’ll speed up taper by a few months. That’s no small potatoes for sure, because the market had anticipated over six or seven months that we would get another $660 billion of liquidity.”
Namely, Powell told the Senate Banking Committee that it would be appropriate for the central bank to consider completing its asset-purchase tapering process “a few months sooner” than previously telegraphed. Market participants had been anticipating that the Fed might strike a more supportive stance for longer especially given concerns over the latest coronavirus variant. But instead, Powell suggested his priority was on curbing persistently elevated levels of inflation, and the Fed chair added it was “probably a good time to retire” his description of inflation as “transitory.”
“Chairman Powell’s commentary course-corrected the view on inflation and the potential need for quicker policy adjustment,” Charlie Ripley, senior investment strategist for Allianz Investment Management, wrote in an email. “The reality is hotter inflation coupled with a strong economic backdrop could end the Fed’s bond buying program as early as the first quarter of next year.”
“Ultimately, the transitory view on inflation has officially come to an end as Powell’s comments reinforced the notion that elevated prices are likely to persist well into next year,” he added. “With potential changes in policy on the horizon, market participants should expect additional market volatility in this uncharted territory.”
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4:04 p.m. ET: Stocks end whipsaw session lower after first U.S. Omicron case confirmed: Nasdaq drops 1.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
Here were the main moves in markets as of 4:04 p.m. ET:
S&P 500 (^GSPC): -53.98 (-1.18{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,513.02
Dow (^DJI): -461.65 (-1.34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,022.07
Nasdaq (^IXIC): -283.64 (-1.83{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,254.05
Crude (CL=F): -$0.79 (-1.19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $65.39 a barrel
Gold (GC=F): +$3.30 (+0.19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,779.80 per ounce
10-year Treasury (^TNX): -0.9 bps to yield 1.4340{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
—
2:50 p.m. ET: ‘The market lacks conviction on the upside’: Strategist
Investors are in for more whipsaw stock market action in the very near-term as more information emerges on the new Omicron variant, according to at least one strategist.
“The price action you’re seeing now really shows the market lacks conviction on the upside,” Niladri Mukherjee, Bank of America head of portfolio strategy, told Yahoo Finance Live on Wednesday.
“In the last couple of weeks, we’ve had two major uncertainties being injected into the market place. One obviously was the news of the new variant, which we know very little about right now. And the second is the possibility of a more hawkish Fed,” he added. “And you’ve seen on different days, on some positive days, you’ve seen a recovery in some of the value and cyclicals which do well when the economy does well. And other days, you’ve seen the secular growth-oriented sectors, like technology doing better than the S&P 500.”
“We think uncertainty will be with us at least in the near-term until we learn more about the virus — its severity, its transmissibility, how much it is evading the vaccines, etc.,” Mukherjee said. “But as we go into 2022, the bigger environment will be that which is really dictated by the Fed’s path to monetary policy normalization.”
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12:55 p.m. ET: Bank stocks jump amid rise in Treasury yields
Bank stocks jumped Wednesday afternoon as Treasury yields climbed, with traders pricing in expectations for an interest rate hike by the Federal Reserve next year after its asset-purchase tapering process ends.
The two-year yield, which is sensitive to expectations for monetary policy changes, jumped by about 5.5 basis points Wednesday afternoon to hover around 0.58{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The yield on the benchmark 10-year Treasury note rose by 1 basis point to 1.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
The jump in Treasury yields helped lift shares of major banks including JPMorgan Chase and Goldman Sachs, both of which are also Dow components. The KBW Regional Banking Index, an exchange-traded funding tracking bank stocks, rose by more than 3.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for its best climb in a month.
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10:05 a.m. ET: ISM Manufacturing index ticks up to 61.1 in November, coming in-line with estimates
Manufacturing sector activity picked up in November compared to October, though inflationary concerns and other price pressures continued to weigh on goods-producing industries.
Beneath the headline index, a subindex tracking prices paid eased to 82.4 from 85.7 in October, but still came in elevated compared to pre-pandemic levels amid lingering inflation. A subindex tracking employment improved to 53.3, rising from October’s 52.0.
“The U.S. manufacturing sector remains in a demand-driven, supply chain-constrained environment, with some indications of slight labor and supplier delivery improvement,” Timothy Fiore, Chair of the Institute for Supply Management Manufacturing survey, said in a press statement. “All segments of the manufacturing economy are impacted by record-long raw materials and capital equipment lead times, continued shortages of critical lowest-tier materials, high commodity prices and difficulties in transporting products.”
“Pandemic-related global issues — worker absenteeism, short-term shutdowns due to parts shortages, difficulties in filling open positions and overseas supply chain problems — continue to limit manufacturing growth potential,” Fiore added.
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9:32 a.m. ET: Stocks rise, S&P 500 and Nasdaq gain more than 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
Here’s where markets were trading just after the opening bell:
S&P 500 (^GSPC): +48.17 (+1.05{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,615.17
Dow (^DJI): +254.43 (+0.74{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,738.15
Nasdaq (^IXIC): +177.88 (+1.13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,712.72
Crude (CL=F): +$2.30 (+3.48{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $68.48 a barrel
Gold (GC=F): +$13.00 (+0.73{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,789.50 per ounce
10-year Treasury (^TNX): +3.7 bps to yield 1.478{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
—
8:22 a.m. ET: Private payrolls rose more than expected last month: ADP
Private sector employment expanded more than anticipated in November, suggesting further improvement in the labor market’s recovery.
U.S. private payrolls grew by 534,000 in November compared to October, ADP said in its closely watched monthly report. Consensus economists were looking for private payrolls to rise by 525,000, according to Bloomberg data. Private payrolls had grown by 570,000 in October, according to ADP’s revised monthly figure.
More data on the state of the labor market will be due on Friday, when the Labor Department releases its “official” government jobs report. Consensus economists are looking to see non-farm payrolls rose by 548,000 in November, accelerating modestly from October’s better-than-expected 531,000 rise. ADP’s report has not typically served as a perfect indicator of what to expect from the government job report due to differences in survey methodology.
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7:24 a.m. ET Wednesday: Stock futures hold onto gains, Dow futures gain nearly 300 points
Here’s where markets were trading as of 7:24 a.m. ET:
S&P 500 futures (ES=F): +55.75 points (+1.22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,622.00
Dow futures (YM=F): +293.00 points (+0.85{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,750.00
Nasdaq futures (NQ=F): +236.00 points (+1.46{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,386.50
Crude (CL=F): +$2.96 (+4.47{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $69.14 a barrel
Gold (GC=F): +$11.50 (+0.65{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,788.00 per ounce
10-year Treasury (^TNX): +4.4 bps to yield 1.485{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
—
6:15 p.m. ET Tuesday: Stock futures rebound
Here were the main moves in markets as the overnight session kicked off:
S&P 500 futures (ES=F): +22.25 points (+0.49{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,588.5
Dow futures (YM=F): +92 points (+0.27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,549.00
Nasdaq futures (NQ=F): +93 points (+0.58{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,243.5
NEW YORK, NEW YORK – NOVEMBER 29: A trader works on the floor of the New York Stock Exchange (NYSE) at the start of trading on Monday following Friday’s steep decline in global stocks over fears of the new omicron Covid variant discovered in South Africa on November 29, 2021 in New York City. Stocks surged in morning trading as investors get more data on the new variant and reports that symptoms have so far been mild for those who have contracted it. (Photo by Spencer Platt/Getty Images)
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}
—
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
U.S. businesses most likely enhanced their rate of employing in October immediately after a sluggish September, with declining COVID-19 infections and demand for staff amid widespread shortages helping bolster labor current market action.
The Labor Section is established to release its Oct positions report Friday morning. Listed here are the main metrics predicted from the report, when compared to consensus estimates compiled by Bloomberg:
Transform in non-farm payrolls, October: +450,000 envisioned, +194,000 in September
Unemployment price: 4.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} predicted, 4.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in September
Common hourly earnings, month-around-thirty day period: .4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} expected, .6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in September
Average hourly earnings, yr-around-calendar year: 4.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} envisioned, 4.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in September
Non-farm payrolls are envisioned to demonstrate the greatest leap in a one month considering the fact that July. However payrolls have grown in every single month so considerably in 2021, the economic system remains extra than 5 million positions limited of its pre-pandemic concentrations subsequent plunges in work among March and April of 2020. And the civilian labor drive was nonetheless down by about 3.1 million folks in comparison to February 2020 as of September.
Employing is predicted to decide on up in a wide array of industries for October, but leisure and hospitality employers could see an primarily pronounced raise as concerns more than the Delta variant receded and enabled additional provider workforce to return to get the job done. Leisure and hospitality positions had averaged practically 350,000 payroll gains per thirty day period involving February and July, even though this growth pulled back to just 56,000 among August and September throughout the latest wave of bacterial infections.
Work progress across the board, having said that, has unsuccessful to maintain speed with employer desire. Occupation openings came in at a in close proximity to-all-time high in August — the newest month for which data is readily available — whilst the quits fee soared by a file. And firms have been widely citing labor shortages in third-quarter earnings reports. Mentions of “labor” on earnings phone calls have skyrocketed by 320{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} more than very last yr, according to info from Lender of The us.
“My most significant problem ideal now — outside the house of inflationary pressures — is in the end what happens with this labor source shortage, because the labor offer scarcity feeds into the source chain challenges we’re seeing,” Kevin Mahn, Hennion & Walsh main expenditure officer, informed Yahoo Finance Dwell on Thursday. “Absolutely everyone is forecasting a report vacation buying time, but there will be delays in shipping and delivery. I am not worried with consumers’ demand from customers for items.”
Other economists offered very similar considerations all over labor scarcities.
“On balance, we look for a considerable rebound in the rate of non-farm using the services of in Oct, with gradual advancement in the unemployment amount and sustained toughness in earnings expansion,” wrote Sam Bullard, main economist for Wells Fargo, in a notice. “Whilst beneficial, work development continues to be constrained by the source side, and there is little evidence that suggests product improvement is close to.”
“Certainly, recent strike action and vaccine mandates have been complicated elements on the source front and advise that labor market place advancement will be gradual in coming months,” he additional.
Even now, the labor info heading into Friday’s report have been upbeat. ADP documented Wednesday that non-public payrolls jumped by a far better-than-anticipated 571,000 in Oct, whilst just 400,000 were being expected. New weekly unemployment promises arrived in at 269,000, or their most affordable degree considering that March 2020, and had also damaged underneath the psychologically vital 300,000 amount in the center of October during the Labor Department’s survey 7 days for the every month work opportunities report.
The labor current market information is also critical in serving to notify the Federal Reserve’s moves on monetary policy. The central financial institution has signaled it is hunting for additional progress on bringing sidelined personnel again into the labor power prior to changing the charge of its tapering plan or thinking of a hike on curiosity prices.
“There is however ground to address to access maximum work equally in conditions of work and in terms of participation,” Federal Reserve Chair Jerome Powell reported in the course of his latest write-up-FOMC conference push conference on Wednesday. He included that it was “in just the realm of probability” that the economic system obtained optimum work by the 2nd fifty percent of future 12 months, as calculated by a wide selection of metrics.
This put up will be up-to-date with the results of the Labor Department’s October work report Friday at 8:30 a.m. ET. Examine back for updates.
Stocks touched records on Monday, with equities looking to build on gains after the S&P 500’s best month since November 2020.
The S&P 500, Dow and Nasdaq each set record intraday and closing levels. Investors headed into November trading with momentum from a record-setting October, when the S&P 500 logged its best monthly gain in nearly a year, powered higher by a combination of estimates-topping corporate profit results. And according to data from LPL Financial, November has marked the best month of the year for stocks over the past 10 years and since 1950.
Fresh catalysts for the markets are due out later this week. Investors in the coming days will be eyeing a slew of new quarterly earnings results for companies from Clorox (CLX) to CVS Health Corp. (CVS), Lyft (LYFT) and Square (SQ), on the back of what has been an already historically strong earnings season.
As of Friday, just over half of all S&P 500 companies had reported actual third-quarter earnings results, and 82{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of these topped consensus estimates on profit results, according to data from FactSet. The expected earnings growth rate for the index is more than 36{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, which, if maintained, would mark the third-highest profit growth rate for the index since 2010.
Though some of the heavily weighted index components from last week had disappointed against consensus estimates — with both Amazon and Apple shares dropping after posting weaker-than-expected results and guidance — other stronger results helped offset these misses, with names including Alphabet and Microsoft rallying to record levels on the heels of their respective reports.
This week will also include key economic data reports including the October jobs report on Friday, which is expected to show a pick-up in job creation compared to the disappointing pace of hiring shown in each of August and September.
Meanwhile, the Federal Open Market Committee will convene for its next monetary policy-setting meeting. on Tuesday and Wednesday, then release its policy statement and hold a press conference with Federal Reserve Chair Jerome Powell. This meeting is expected to set the stage for an announcement of tapering of the Fed’s crisis-era asset purchase program, which is currently taking place at rate of $120 billion per month in purchases of agency mortgage-backed securities and Treasuries. Amid the improving data tracking the economic recovery, the Fed previously signaled that a tapering announcement would come before year-end, and that the tapering process would continue until the middle of next year.
Given the market has been anticipating the start to tapering for months now, speculation around when the Fed will make a move on interest rates has become a point of particular interest to investors. This week’s FOMC statement and press conference are likely to provide some more color to market participants around how committee members are thinking about the timing for interest-rate hikes, especially given the persistent jump in inflation seen in data including last week’s core personal consumptions expenditures report. That print showed a fourth straight month with core PCE jumping at 3.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} year-over-year rate, or its fastest since 1991.
These still-heightened inflation data, combined with companies’ earnings call anecdotes of higher input prices and labor costs, have led some investors to speculate the Fed might need to move to raise rates more quickly than previously telegraphed to stave off an unchecked and lasting surge in inflation.
Others, however, suggested the Fed might hold off on a move on interest rates until labor market conditions have come closer to pre-pandemic levels.
“Fed funds futures currently price in the first rate hike by September 2022. If realized, that would be much faster than the one-year gap that occurred between the end of the Fed’s asset purchases in December 2014 and its first rate hike in December 2015,” Sam Bullard, Wells Fargo senior economist, wrote in a note. “We think the Fed is unlikely to hike rates by September 2022, given that numerous FOMC policymakers have made clear that the bar for a rate hike is much higher than the bar for tapering asset purchases.”
“At August’s rate of job growth, it would take a little more than two years to recoup 100{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of the jobs lost during the pandemic, and even then, the economy would be still several million jobs short of its pre-pandemic trend,” he added. “We still expect the labor market to face a meaningful employment gap for the entirety of 2022. As such, we currently have the first rate hike not occurring until 2023. Obviously the economic situation is fluid and risks to the outlook suggest the rate hike could come sooner than we expect. A very close eye needs to be kept on all incoming data.”
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4:04 p.m. ET: Stocks kick off Nov. trading at records: S&P 500, Dow and Nasdaq set all-time closing highs
Here were the main moves in markets as of 4:04 p.m. ET:
S&P 500 (^GSPC): +8.29 (+0.18{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,613.67
Dow (^DJI): +94.28 (+0.26{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,913.84
Nasdaq (^IXIC): +97.53 (+0.63{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,595.92
Crude (CL=F): +$0.37 (+0.44{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $83.94 a barrel
Gold (GC=F): +$9.60 (+0.54{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,793.50 per ounce
10-year Treasury (^TNX): +1.8 bps to yield 1.5750{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
—
12:26 p.m. ET: Tesla shares jump to fresh record high in fourth straight session of gains
Shares of Tesla (TSLA) surged anew to set a fresh intraday high on Monday, with the stock advancing for a fourth straight session amid a slew of upbeat news for the electric-vehicle maker. Shares rose nearly 5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to top $1,160 as of afternoon trading.
Tesla’s stock built on gains from October, when shares gained 44{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in a fifth consecutive monthly advance. On Monday, Chinese company Ganfeng Lithium said in won a deal to provide Tesla lithium products for three years, helping lock in an agreement to provide components for the automaker amid a global jump in input prices.
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11:18 a.m. ET: ‘We do still see opportunities within equities for investors’: BofA
With the S&P 500 setting yet another record intraday high, some strategists are striking a more cautious tone on the blue-chip index.
“We’re a bit more cautious on the S&P 500 at these levels, we expect more downside than upside through year-end, and we’re looking for sort of a flattish market between now and 2022, just given some of the risks that we’re seeing right now,” Jill Carey Hall, Bank of America U.S. equity strategist and head of U.S. small and mid-cap strategy, told Yahoo Finance Live on Monday.
“We do still see opportunities within equities for investors,” she added. “One of those areas is small caps…we’re projecting based on where valuations are today small caps could actually see mid-to-high single-digit annualized returns over the next decade.”
“The pick-up in capex [capital expenditures] spending by corporations that we’re seeing evidence of this earnings season, that’s typically bullish for smaller, more domestic companies,” she added. “And small caps aren’t as stretched on valuations.”
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10:25 a.m. ET: Construction spending slips
U.S. construction spending fell 0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in September, reversing an increase of 0.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in August. The results missed expectations of an increase of 0.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, compiled by Bloomberg analysts consensus. The drop is activity was attributed to supply shortages and soaring building material prices. Private construction spending fell 0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, while single-family spending fell 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
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10:00 a.m. ET: Manufacturing expansion slows
The institute for Supply Management (ISM) said its index of factory activity in the U.S. slipped to a reading of 60.8 in October from 61.1 a month earlier — a 16-month low. The slowdown came amid ongoing supply chain issues across the globe.
“Production was little changed, and the other headline components – supplier delivery times, employment, and inventories – rose modestly. But orders tend to lead, so the headline index likely will dip next month,” Ian Shepherdson, chief economist for Pantheon Macroeconomics, said in an email following the results. “That said, the downturn in China’s PMIs points to downside risk for the ISM over the next few months, though U.S. manufacturing will not slow as much as China’s, which is being hurt by the authorities’ pursuit of zero COVID. At the same time, U.S. manufacturers have seen a bigger demand boost as a result of the outsized fiscal stimulus.”
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9:38 a.m. ET: Dow, S&P 500 and Nasdaq rise
Here were the main moves in markets as of 9:38 a.m. ET:
S&P 500 (^GSPC): +7.15 (+0.16{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,612.53
Dow (^DJI): +160.83 (+0.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,980.39
Nasdaq (^IXIC): +6.27 (+0.04{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,504.66
Crude (CL=F): +$1.05 (+1.26{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $84.62 a barrel
Gold (GC=F): +$8.40 (+0.47{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,792.30 per ounce
10-year Treasury (^TNX): +4.3 bps to yield 1.6000{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
—
7:22 a.m. ET Monday: Stock futures point to a higher open
Here’s where markets were trading ahead of the opening bell:
S&P 500 futures (ES=F): +21 points (+0.46{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,618.00
Dow futures (YM=F): +176.00 points (+0.49{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,880.00
Nasdaq futures (NQ=F): +63.5 points (+0.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,902.00
Crude (CL=F): +$0.46 (+0.55{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $84.03 a barrel
Gold (GC=F): +$0.80 (+0.04{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,784.70 per ounce
10-year Treasury (^TNX): +2.6 bps to yield 1.582{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 27, 2021. REUTERS/Brendan McDermid
