BEIJING (AP) — Asian inventory marketplaces adopted Wall Road larger Friday immediately after two Federal Reserve officers reported the U.S. economic climate may well steer clear of a economic downturn and news experiences mentioned China may possibly increase design paying to promote its having difficulties economic climate.
Shanghai, Tokyo, Hong Kong and Sydney sophisticated for a next day. Oil price ranges declined but stayed higher than $100 for each barrel.
Wall Street’s benchmark S&P 500 index rose 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on Thursday soon after a member of the Fed panel that sets curiosity rates, James Bullard, stated a “soft landing” for the overall economy however was his “base circumstance.” An additional member of the Fed panel, Christopher Waller, explained “fears of a economic downturn are overblown.”
“Investor economic downturn fears ebbed,” claimed Robert Carnell and Iris Pang of ING in a report.
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The Shanghai Composite Index highly developed .2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 3,370.85 right after information studies explained China may increase 1.5 trillion yuan ($220 billion) to paying out on community works design this calendar year to promote financial advancement.
The Nikkei 225 in Tokyo attained 1.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 26,869.82 and the Hang Seng in Hong Kong included .5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 21,757.04.
The Kospi in Seoul rose .7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 2,350.97 and Sydney’s S&P-ASX 200 was .5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} increased at 6,680.10. New Zealand and Southeast Asian markets innovative.
On Wall Avenue, the S&P 500 rose to 3,902.62 for its fourth everyday maximize. Around 3-fourths of the shares in the index obtained.
The Dow Jones Industrial Typical rose 1.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 31,384 and the Nasdaq composite sophisticated 2.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 11,621.35.
Buyers are uneasy that intense U.S. and European fascination price hikes to great inflation that is functioning at a four-10 years large may well derail world financial growth.
Bullard, who is president of the Federal Reserve Bank of St. Louis, said “it would make a ton of sense” to elevate the U.S. central bank’s vital desire rate by 3-quarters of a share position, or triple the usual margin, at its meeting this month. That would repeat the dramatic mid-June price hike, the Fed’s greatest in 28 a long time.
Waller, talking at a different occasion, stated he also supported a .75-share-point hike. He claimed the Fed could danger “causing some economic harm,” but with a solid labor industry, that shouldn’t be far too large.
The U.S. federal government is owing to report June employment info.
On Thursday, official details confirmed the number of Individuals applying for unemployment rewards topped the 230,000 mark for the fifth consecutive week. It was the optimum level in pretty much six months.
Bloomberg News noted China’s Ministry of Finance was contemplating a plan to allow for regional governments to increase revenue from bond income to spend on building roadways and other community performs.
It was not clear regardless of whether that represented supplemental expending or was upcoming strategies for bond profits introduced forward to support shore up economic advancement some forecasters say fell shut to zero in the quarter ending in June right after anti-virus controls shut down Shanghai and other industrial facilities.
Markets also have been on edge about Russia’s invasion of Ukraine, which despatched oil and other commodity price ranges soaring.
European markets gained Thursday after British Prime Minister Boris Johnson declared his resignation next a collection of departures from his Cabinet by members of his Conservative Bash.
In electricity markets, benchmark U.S. crude shed 11 cents to $102.62 for each barrel in electronic buying and selling on the New York Mercantile Trade. The agreement rose $4.20 to $102.73 on Thursday. Brent crude, the rate foundation for international buying and selling, get rid of 12 cents to $104.53 per barrel in London. It obtained $3.96 the past session to $104.65.
The greenback declined to 135.80 yen from Thursday’s 136.11 yen. The euro gained to $1.0170 from $1.0156.
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BANGKOK (AP) — Shares were being typically increased in Asia on Wednesday after U.S. stocks rallied on major shopping for of technological know-how providers. Advancing Chinese technological know-how shares also pushed Hong Kong sharply higher.
Benchmarks similarly rose in Tokyo, Seoul and Sydney. Shanghai declined. Oil prices remained in the vicinity of $120 per barrel.
Buyers are waiting for more clarity on exactly where curiosity rates, inflation and economies are heading.
Japan’s economic climate contracted at a .5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} once-a-year amount in the initial quarter amid a key outbreak of coronavirus, the Cabinet Place of work claimed. That was scaled-down than the 1.{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} contraction in the preliminary estimate. The newest facts confirmed shopper paying out and other non-public demand from customers was not as weak as previously thought.
Political Cartoons
Tokyo’s Nikkei 225 index obtained .9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 28,207.55 while the Kospi in South Korea was very little adjusted at 2,625.13. In Sydney, the S&P/ASX 200 superior .5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 7,173.33.
Hong Kong’s Hold Seng index jumped 1.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 21,897.83 as Chinese engineering shares surged following Beijing authorised a new batch of video game titles. That was observed as a indication the business enterprise outlook for tech organizations is improving upon after a prolonged regulatory crackdown.
Tencent, China’s largest games company, rose 4.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. E-commerce huge Alibaba Team Holding soared 8.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and food items supply issue Meituan advanced 3.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
U.S. stocks rallied Tuesday as Treasury yields eased. The S&P 500 climbed 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 4,160.68 just after reversing a morning loss of 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The Dow Jones Industrial Normal rose .8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 33,180.14 just after bouncing between losses and gains in the course of the working day. The Nasdaq composite attained .9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 12,175.23.
Gains by Apple, Microsoft and other engineering stocks were some of the biggest forces lifting the market, as the 10-year Treasury generate fell beneath 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
Shares of power producers also jumped as oil charges rose to roughly $120 for each barrel, up additional than 55{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for the yr so significantly. Exxon Mobil climbed 4.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, and ConocoPhillips included 4.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
Kohl’s soared 9.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} soon after the office retail store chain mentioned it is in sophisticated talks to offer itself for about $8 billion to Vitamin Shoppe proprietor Franchise Team. Jam maker J.M. Smucker rose 5.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} just after reporting much better earnings than analysts predicted.
Shares in the beginning fell after Concentrate on warned of lower revenue margins as it slashes prices to very clear out inventory. The retail big sank 2.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} just after it introduced moves it said had been desired to keep up with customers’ changing behaviors.
Other stores obtained caught in the downdraft, and Walmart fell 1.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
The Entire world Lender sharply lower its forecast for economic growth this year, including to concerns as it pointed to Russia’s war from Ukraine and the probability of meals shortages and the prospective return of “ stagflation,” a toxic blend of higher inflation and sluggish progress unseen for far more than 4 many years.
The economy’s fragility has been atop Wall Street’s mind this 12 months amid worries about interest-rate hikes coming from the Federal Reserve. The central financial institution is relocating aggressively to stamp out the worst inflation in a long time, but it pitfalls choking off the overall economy if it moves much too much or as well immediately.
The Fed is greatly expected to raise its critical brief-expression interest amount by fifty percent a proportion level at its conference subsequent 7 days. That would be the second straight maximize of double the standard amount, and investors hope a 3rd in July.
Treasury yields have mostly climbed by way of this 12 months with expectations for a additional aggressive Fed. They moderated a little bit on Tuesday, however.
The generate on the 10-yr Treasury fell back to 2.98{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from 3.03{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} late Monday. The two-year yield, which much more intently tracks anticipations for Fed motion, dipped a lot more modestly to 2.72{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from 2.73{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
The following major update on inflation comes Friday, when the U.S. authorities releases its hottest looking through on the customer price index.
In other buying and selling, benchmark U.S. crude oil extra 41 cents to $119.82 per barrel in electronic buying and selling on the New York Mercantile Exchange. It obtained 91 cents to $118.50 for each barrel on Tuesday.
Brent crude, the normal for worldwide buying and selling, picked up 30 cents to $120.87 for each barrel.
The U.S. greenback was trading at 133.13 Japanese yen, up from 132.61 yen. The euro slipped to $1.0682 from $1.0705.
AP Company Writers Yuri Kageyama and Zen Soo contributed.
Copyright 2022 The Linked Press. All rights reserved. This substance might not be printed, broadcast, rewritten or redistributed.
PARSIPPANY, NJ — Inflation and supply chain restoration proved demanding as soon as once more for B&G Foodstuff, Inc. in the first quarter of fiscal 2022.
Web money at B&G Foodstuff in the first quarter ended April 2 totaled $23.66 million, equivalent to 34¢ for each share on the common stock, down 12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from $26.88 million, or 42¢ for each share, in the similar interval a 12 months back. B&G explained the most current quarter involved a $7.1 million gain related to the sale of property.
Internet profits greater 5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $532.41 million from $505.13 million.
On May well 6, a day immediately after earnings were being produced, shares of B&G shut at $24.37 on the New York Stock Exchange, down virtually 13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from the near of $27.90 on Might 4, the day in advance of earnings were issued.
“Our first quarter was closely impacted by serious input expense improves across big parts of our portfolio coupled with ongoing industrywide supply chain disruptions that, even though increasing, have continue to been a drag on the enterprise,” Bruce C. Wacha, main economical officer, explained all through a Could 5 convention phone with analysts. “The destructive pressures have been offset in part by our pricing initiatives that consist of listing value increases, trade commit reductions, product body weight-outs, and the impression of item blend. These initiatives that we have taken to make improvements to net pricing have been made to be similarly as significant. Having said that, thanks to the lag result on implementation, our margins have been compressed in the quick term. We be expecting identical ranges of margin compression in the second quarter owing to the enter cost raises.”
Mr. Wacha said net income of Cream of Wheat enhanced by $2.8 million, or 15.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, throughout the initially quarter. He stated the brand benefited from price tag and volume, pushed in element by ongoing sturdy desire throughout the brand’s portfolio, notably for Cream of Rice goods.
In the meantime, web income of Ortega improved by $3.6 million, or 9.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, lifted by enhanced output potential from a new taco sauce line in Hurlock, Md. Potent progress also was famous in Maple Grove Farms, which saw profits raise by $1.2 million, or 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, Mr. Wacha reported.
In the Eco-friendly Giant model, net sales of shelf-steady solutions rose by $3.9 million, or 11.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, while web revenue of frozen items fell $700,000, or .7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, in the course of the quarter.
Internet gross sales in the company’s spices and seasonings company fell $15.1 million, or nearly 15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, in the initial quarter when compared with a calendar year ago, but remained up extra than 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from the 1st quarter of 2020, Mr. Wacha explained.
“We have made sizeable investments in our Ankeny, Iowa, spices and seasonings facility and we are beginning to see meaningful advancements in our fill fees for this crucial classification of our enterprise,” he claimed. “We anticipate that our improvements will greater permit us to improve our possibility in the spices and seasonings group this calendar year.”
B&G Meals revised its complete-12 months fiscal 2022 altered EBITA steering to a range of $348 million to $358 million, down from early steering of $358 million to $368 million. Internet product sales direction for the full yr was lifted to a selection of $2.10 billion to $2.14 billion, up from before assistance of $2.07 billion to $2.13 billion.
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.
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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}
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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.
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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}
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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.
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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
U.S. stocks closed higher Friday to cap a choppy first trading day of April as investors saw a closely-watched recession indicator in the bond market briefly flash red and mulled strong labor market data out of Washington that reaffirmed expectations for more hawkish monetary tightening plans by the Federal Reserve.
The S&P 500 rebounded into the close to rise 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, and the Dow Jones Industrial Average jumped 150 points after both benchmarks struggled for direction during intraday trading. The Nasdaq Composite edged 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} higher, to mark a third week of gains for the tech-heavy index and the S&P 500. Friday’s moves come after Wall Street capped its worst quarter since the start of 2020.
A key part of the part of the U.S. Treasury yield curve briefly inverted Friday morning. The spread, or difference, between the 2-year and 10-year Treasury note yields narrowed and inflected for the third time this week. The phenomenon has a history of predicting a recession, with each of the last eight recessions dating back to 1969 preceded by a yield curve inversion. On Friday, the yield on the 10-year U.S. Treasury bond ended the day at 2.38{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, 6 basis points below the 2-year U.S. Treasury yield of 2.44{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
Investors also digested the Labor Department’s monthly jobs report, the most up-to-date snapshot of the strength in hiring across the U.S. economy. Employers added 431,000 jobs in March, below Bloomberg consensus economist estimates of a 490,000 rise in non-farm payrolls. The latest figure reflected a slowdown from February’s 678,000 gain but still marked an increase well above pre-pandemic trends and underscored the likelihood Fed policymakers will raise interest rates more aggressively in coming months than initially expected.
Meanwhile, West Texas Intermediate (WTI) crude oil fell $14 to dip below $100 per barrel in its biggest weekly dollar loss since 2011. U.S.-allied countries in the International Energy Agency (IEA) on Friday agreed to their second coordinated deployment of oil stockpiles in a month to calm Russia-Ukraine war-roiled energy markets, one day after President Biden unveiled plans for the largest ever release from the U.S. Strategic Petroleum Reserve. The U.S. is expected to deploy 1 million barrels of oil a day from its emergency supply for the next six months starting.
Stocks kicked off April higher after the S&P 500 and Dow each dropped more than 4.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for the first three months of 2022, closing out their worst quarters — and first quarterly declines — since Q1 2020. The Nasdaq Composite saw the biggest loss, shedding 9.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over the past three-month period as investors rotated away from the technology and growth stocks that had led the market higher last year.
Despite day-to-day choppiness, stocks staged a solid comeback in the second half of March as the S&P rallied to climb more than 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} off its year-to-date low. Market-watchers have attributed the resurgence to optimism around the possibility of a peace negotiation between Russia and Ukraine, and to investors adjusting to the Fed’s liftoff on interest rates. However, LPL Financial points out that corporate profits may be another component driving the latest rebound.
Even in the face of war in Eastern Europe and decades-high inflation, earnings have been holding up, and estimates for S&P 500 Index earnings per share over the next four quarters are higher in March. Although not by much at 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, the positive forecast is significant under the circumstances – particularly compared to how other countries have fared. Inflation is driving the more sizable corporate profits as companies enjoy more pricing power as they pass along higher costs to customers.
“On the back of energy independence, the trajectory of U.S. corporate profits has been unaffected by rising energy costs and high inflation so far,” LPL Financial equity strategist Jeffrey Buchbinder noted, adding that conversely, earnings expectations in international markets have fallen in March. “The U.S. profit outlook is the envy of the world right now.”
Also on the companies front, meme-stock favorite GameStop revealed in a form 8-K filed with the SEC after the bell Thursday that the video-game retailer will seek approval for a stock split at its upcoming shareholder meeting. GME is following a growing list of major companies — Alphabet, Amazon, Tesla — it what could be the “summer of stock splits.” Stock splits are a corporate action taken to improve trading liquidity and make shares more affordable without impacting market capitalization. GME was up 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to about $176.43 as if 11:55 a.m. ET during intraday trading Friday.
April has historically been a strong month for stocks, and has in fact produced a positive return for the S&P 500 in 15 of the last 16 years, according to LPL Financial’s Ryan Detrick. This time, however, stocks are facing a variety of headwinds that may upend this historically positive seasonality.
Namely, a confluence of concerns around the geopolitical and macroeconomic backdrop contributed to stocks’ worst quarterly performance in two years, and have yet to be fully resolved. Geopolitical risks have been elevated since Russia’s invasion of Ukraine in late February, raising the specter of further snarls to global supply chains that have already been struggling to recover from pandemic-era disruptions. A broad-based spike in prices, and in oil and energy prices especially, has further stoked concerns over the resilience of the consumer — the key driver of the domestic economy — going forward. And the Federal Reserve has begun a protracted process of raising interest rates and tightening financial conditions in a market that had grown accustomed to easy monetary policy since 2020.
“I think investors are very happy that the quarter is over. It was a tough one. Obviously inflation was bad all the way until … the end of the quarter,” Robert Cantwell, Upholdings portfolio manager, told Yahoo Finance Live on Thursday. “And in all likelihood, the next four to six weeks, it’s likely going to continue to be bad news because inflation is persistent, and we’re still comping record growth rates from the first four months of last year.”
“That said, as you get to the second half of next quarter, you could see a scenario where growth rates start accelerating again while inflation tempers, and that has the potential to bring a lot of the bulls back into the market,” he added.
—
4:00 p.m. ET: Stocks bounce back after chopping intraday trading
Here’s how stocks ended the first trading day of April:
S&P 500 (^GSPC): +15.40 (+0.34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,545.81
Dow (^DJI): +139.85 (+0.40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,818.20
Nasdaq (^IXIC): +40.98 (+0.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,261.50
Crude (CL=F): -$0.71 (-0.71{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $99.57 a barrel
Gold (GC=F): -$26.90 (-1.38{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,922.30 per ounce
10-year Treasury (^TNX): +5 bps to yield 2.3770{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
—
12:42 a.m. ET: S&P 500 on pace for weekly loss after erasing earlier gains
Here were the main moves in markets as of 12:42 p.m. ET:
S&P 500 (^GSPC): -15.47 (-0.34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,514.94
Dow (^DJI): -80.99 (-0.23{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,597.36
Nasdaq (^IXIC): -62.95 (-0.44{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,157.57
Crude (CL=F): -$1.19 (-1.19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $99.09 a barrel
Gold (GC=F): -$26.50 (-1.36{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,927.50 per ounce
10-year Treasury (^TNX): +5.7 bps to yield 2.3840{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
—
12:28 a.m. ET: Amazon workers in New York win first US union in company’s history
Employees at Amazon’s (AMZN) warehouse on Staten Island narrowly won a historic union election on Friday to establish the first U.S. union in the company’s nearly 30-year history.
As of early Friday afternoon, the union was poised for victory with a margin of nearly 500 votes. The National Labor Relations board said that the union and Amazon had challenged 66 ballots, suggesting that the margin of victory would exceed the number of contested ballots and conclude the election without further dispute.
“A win is potentially world-changing,” Erik Loomis, a labor historian and professor at the University of Rhode Island, told Yahoo Finance prior to the vote. “It would set a precedent that there is a big demand out there to organize this new economy.”
The move also stands to intensify a nationwide surge of organizing across major companies like Starbucks (SBUX) and Disney (DIS).
Amazon JFK8 distribution center union organizer Jason Anthony speaks to the press about preliminary results regarding the vote to unionize, outside the NLRB offices in Brooklyn, New York City, U.S., April 1, 2022. REUTERS/Brendan McDermid
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12:19 a.m. ET: US allies to follow suit on Biden’s oil-stock release
U.S.-allied countries in the International Energy Agency (IEA) agreed to their second coordinated deployment of oil stockpiles in a month to calm Russia-Ukraine war-roiled energy markets, one day after President Biden unveiled plans for the largest ever release from the U.S. Strategic Petroleum Reserve.
The timing and volumes of the releases from each country will be decided at a later date, Japan’s industry ministry said.
A month ago, IEA members agreed on a 61.7-million barrel release, with 30 million coming from the U.S. and 2.2 million from the U.K, though the move had minimal impact on prices as turmoil in Eastern Europe threatened to trigger one of the biggest oil-supply disruptions in history.
“This is a moment of consequence and peril for the world, and pain at the pump for American families,” Biden said at an event at the White House Thursday.
“Our prices are rising because of Russian President Vladimir Putin’s actions,” he said. There isn’t enough supply, and the bottom line is if we want lower gas prices we need to have more oil supply right now.”
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11:18 a.m. ET: General Motors stock falls after carmaker reports decline in Q1 deliveries
Shares of General Motors (GM) dipped after the automaker reported its U.S. deliveries fell 20.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in the first quarter to 512,846, dragged down by Buick deliveries which more than halved.
GM was down 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $43.10 per share as of 11:16 a.m. ET.
“Supply chain disruptions are not fully behind us, but we expect to continue outperforming 2021 production levels, especially in the second half of the year,” the carmaker said Friday.
General Motors also indicated the company expects inventory to remain “relatively low throughout the year due to high demand.”
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11:02 a.m. ET: JPMorgan ditches Apple, Qualcomm from top picks list
JPMorgan dropped iPhone giant Apple (AAPL) and chipmaker Qualcomm (QCOM) from the brokerage’s “Analyst Focus List,” indicating slowing demand for smartphones is expected to put a dent in the companies’ growth.
The move comes as analysts warned that another wave of COVID lockdowns in China and higher prices on goods are likely to weigh on demand this year.
“There has been understandably a lot of noise around demand weakness across global tech, but we believe the macro weakness seeping through the sector will impact the consumer end-markets more materially,” JPMorgan analyst Samik Chatterjee said.
Apple already reportedly has plans to limit production on some iPhones and its AirPods due to a decrease in demand.
Shares of the tech giant were down 0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} as of 11:01 a.m. ET to $173.75 a piece. Qualcomm fell 3.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $147.12 per share.
—
9:30 a.m. ET: Stocks open higher following March jobs report
Here were the main moves in markets at Friday’s open:
S&P 500 (^GSPC): +12.54 (+0.28{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,542.95
Dow (^DJI): +74.62 (+0.22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,752.97
Nasdaq (^IXIC): +70.78 (+0.50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,291.30
Crude (CL=F): -$1.01 (-1.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $99.27 a barrel
Gold (GC=F): -$23.10 (-1.18{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,930.90 per ounce
10-year Treasury (^TNX): +9.9 bps to yield 2.4260{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
—
8:30 a.m. ET: Payrolls rise by 431,000 as unemployment rate falls to 3.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
The U.S. economy notched another sizable payroll gain in March as the labor market extending its strong and speedy recovery to bring employment back to pre-pandemic levels. U.S. employers added 431,000 jobs, lower than the expected 490,000 jobs.
Meanwhile, the unemployment rate dropped a more-than-expected two-tenths of one percent, edging closer to the historic low of 3.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} seen in February 2020, Bankrate senior economic analyst Mark Hamrick noted, though pointing out that the labor force participation rate remains 1 percentage point below its pre-pandemic level.
The labor force participation ticked up slightly to 62.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after an unexpected jump to 62.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in last month’s data signaled more individuals were returning to look for work or be placed in jobs after being sidelined by COVID-19.
“Beyond the positive March snapshot, the outlook for the next year is for further moderation in jobs creation,” Hamrick said in a note. “Emboldened by exorbitantly high inflation, a hawkish Federal Reserve feels compelled to slam on the brakes. It is hard to imagine how tightening doesn’t ultimately affect the job market.”
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7:14 a.m. ET: Futures charge higher to kick off April trading
Here were the main moves in futures trading ahead of the open Friday:
S&P 500 futures (ES=F): +22.00 points (+0.49{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,552.75
Dow futures (YM=F): +172.00 points (+0.50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,790.00
Nasdaq futures (NQ=F): +80.00points (+0.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,948.75
Crude (CL=F): +$0.14 (+0.14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $100.14 a barrel
Gold (GC=F): -$21.90 (-1.12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,932.10 per ounce
10-year Treasury (^TNX): 0.00 bps to yield 2.3270{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
—
6:24 p.m. ET Thursday: GameStop surges to 4-month high after filing stock split plans
GameStop (GME) shares rallied in extended trading following an announcement after the bell indicating the video-game retailer plans to seek approval for a stock split.
The meme-stock favorite rallied as much as 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in extended trading to a 4-month high of more than $200 per share following the news.
The company said in an 8-K SEC filing it plans to request stockholder approval at its upcoming annual shareholder meeting to increase the number of authorized Class A shares from 300 million to 1 billion in order to implement the split through a dividend.
With GME following suit on a growing list of companies recently reporting similar plans – Alphabet, Amazon, Tesla – it could be the “summer of stock splits.” Stock splits are a corporate action taken to improve trading liquidity and make shares more affordable, without impacting market capitalization.
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6:10 p.m. ET Thursday: Futures tick up slightly ahead of first April trading day
Here’s where the major stock index futures opened heading into the overnight session Thursday:
S&P 500 futures (ES=F): +12.25 points (+0.27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,543.00
Dow futures (YM=F): +96.00 points (+0.28{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,714.00
Nasdaq futures (NQ=F): +49.75 points (+0.33{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,918.50
Crude (CL=F): +$1.04 (+1.04{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $101.32 a barrel
Gold (GC=F): -$12.20 (-0.62{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,941.80 per ounce
10-year Treasury (^TNX): -3.1 bps to yield 2.3270{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
NEW YORK, NEW YORK – MARCH 28: Traders work on the floor of the New York Stock Exchange (NYSE) on March 28, 2022 in New York City. Following a positive week for stocks, the Dow Industrial Average was down over 100 points in morning trading. (Photo by Spencer Platt/Getty Images)
Futures on Wall Street’s main benchmarks pushed higher in pre-market trading Tuesday following a choppy previous session that saw stocks climb in the final hour to cap the day at six-week highs.
Contracts on the S&P 500 were up 0.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, and the Dow Jones Industrial Average jumped 150 points. Futures tied to the Nasdaq Composite were up 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after the index was buoyed by a comeback in technology stocks during the previous session. Big names in the sector — Tesla, Amazon, and Apple — each rallied during intraday trading Monday following a rough start to the year stoked by a risk-off sentiment amid a liftoff in interest rates by the Federal Reserve.
“Corporate America is in excellent shape — earnings estimates are higher in 2022 now than they were at the start of the year, which is no small feat,” LPL Financial equity strategist Jeff Buchbinder said in a note, adding, however, that the positive outlook was not without risks, particularly around the Fed’s inflation fight. Buchbinder pointed out the S&P 500 registered a 19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} correction when the Federal Reserve last bumped rates up three years ago.
“We saw in 2018 what can happen when the market thinks the central bank is getting too aggressive,” he said. “And certainly we would not dismiss the potential for an escalation of the war in Europe and a broader conflict.”
Also weighing on corporate earnings is a slowdown in economic expansion and a challenging margin environment set forth by wage pressures, supply chain woes, materials and labor shortages, and rising commodity price, LPL Financial noted. These factors could make big earnings upside for companies to achieve and leave valuations to do the heavy lifting — but those valuations may not offer enough support to prop the S&P 500 up to 5,000 at year-end.
“As we see inflation across the board for companies, we expect margins to continue to be under pressure,” Hazen said.
Inflation worries are also mounting for everyday Americans. The Conference Board’s Consumer Confidence Index due for release on Tuesday will show a timely snapshot of their thinking following the latest spike in prices. Economists surveyed by Bloomberg are looking for the index to fall to 107.0 for March following a read of 110.5 last month.
There will also be a new read on labor demand with the Job Openings and Labor Turnover Survey (JOLTS) for February scheduled for release Tuesday morning. Analysts are expecting 11 million vacancies, little changed from January’s 11.26 million openings. The results will jump start a week of fresh jobs data for March, which includes ADP’s private payrolls (out on Wednesday) and the crucial jobs report (Friday).
Investors got some relief on Monday as the CBOE Volatility Index (^VIX), which measures volatility and serves as a gauge of market sentiment, dipped. Wall Street’s “fear index,” better known as the VIX, settled below 20 for the first time since January after hovering at elevated levels in recent weeks.
Meanwhile, oil prices tanked on Monday after Shanghai implemented a lockdown to curb a surge in COVID-19 infections, renewing fears of a slowdown in demand. WTI Crude Oil futures (CL=F) plunged 9.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to settle at around $103 per barrel, recording their biggest drop in two weeks.
The war in Ukraine remains on the radar for investors. The Kremlin said Monday that peace talks between Russia and Ukraine may continue this week when officials from both countries meet in Turkey on Tuesday.
“While we cannot and will not speak about progress at the talks, the fact that they continue to take place in person is important, of course,” Kremlin spokesperson Dmitry Peskov told reporters on a conference call.
Peskov added that no major progress had been made in the talks themselves or the possibility of a face-to-face meeting between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy.
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7:10 a.m. ET: Stock futures rise ahead of consumer confidence, jobs data
Here were the main moves in markets ahead of Tuesday’s open:
S&P 500 futures (ES=F): +16.00 points (+0.35{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,584.00
Dow futures (YM=F): +132.00 points (+0.38{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,985.00
Nasdaq futures (NQ=F): +40.75 points (+0.27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,026.00
Crude (CL=F): +$0.88 (+0.83{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $106.84 a barrel
Gold (GC=F): -$28.50 (-1.47{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,911.30 per ounce
10-year Treasury (^TNX): -0.00 bps to yield 2.477{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
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6:16 p.m. ET Monday: Futures open flat after stocks close at 6-week highs
Here’s where the major stock index futures opened Monday evening:
S&P 500 futures (ES=F): +0.25 points (+0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,568.25
Dow futures (YM=F): -14.00 points (-0.04{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,839.00
Nasdaq futures (NQ=F): -10.75 points (-0.07{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,974.50
Crude (CL=F): -$2.43 (-2.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $103.53 a barrel
Gold (GC=F): -$17.60 (-0.91{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,922.20 per ounce
10-year Treasury (^TNX): -1.5 bps to yield 2.477{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
NEW YORK, NEW YORK – MARCH 28: Traders work on the floor of the New York Stock Exchange (NYSE) on March 28, 2022 in New York City. Following a positive week for stocks, the Dow Industrial Average was down over 100 points in morning trading. (Photo by Spencer Platt/Getty Images)
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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