Tag: losses

Posted on

Stocks rise, recovering some losses as oil prices sink

Stocks rise, recovering some losses as oil prices sink

Stocks rose Wednesday to recover some losses after a volatile start to the week, as concerns over the impact of the punitive measures countries and companies have taken against Russia weighed on U.S. equity markets.

The S&P 500 closed 2.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} higher at 4,277.89 — posting its biggest gain since June 2020. The Dow gained 650 points, or 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, closing at 33,286.25. The Nasdaq jumped 3.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} closing at 13,255.55, logging its biggest advance since exactly a year ago on March 9, 2021. The CBOE Volatility Index, or VIX, dropped nearly 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} but still held above the 30 level. A day earlier, the S&P 500 dropped another 0.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on Tuesday to bring its year-to-date losses to 12.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The Dow shed more than 0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to sink further into a correction, while the Nasdaq Composite extended losses after sliding into a bear market earlier this week.

Crude oil prices pulled back from 14-year highs after Ukraine signaled it was aiming to pursue a diplomatic solution to Russia’s war. West Texas intermediate crude sank to just over $110 per barrel, while Brent crude traded just above $112 per barrel Wednesday afternoon. Gas prices at the pump, however, spiked to a fresh high across the U.S.

“You can’t have the rise at the fuel pumps not hit the economic pockets of everyday Americans, because it’s going to make everything go up in costs,” Victoria Greene, G-Squared Private Wealth founding partner, told Yahoo Finance Live. “Anything that rides on four wheels or six wheels, including all your shipping — it’s going to make all your costs rise. We’re already in an inflationary environment … it really is going to be something that we have to watch.”

“I don’t think that sanctions are going to go away,” she added. “The world is … angry at this situation. So let’s say miraculously we get a ceasefire tomorrow, I think the general shrinkage and the issues with supply chains are going to be a sticky situation for the rest of the year.”

And beyond the growing list of government-imposed sanctions against Russia, a myriad of major U.S. companies announced fresh plans to stop doing business in Russia for the foreseeable future. In the restaurants space, McDonald’s (MCD), Starbucks (SBUX), Coca-Cola (KO) and PepsiCo (PEP) said they would close some or all operations in Russia. Amazon Web Services said it would stop bringing on new sign-ups from Russia and Belarus, and Shopify announced it was suspending operations in the countries as well.

Given the ongoing geopolitical uncertainty and push to isolate Russia from the global economy, some strategists suggested investors should brace for more market volatility.

“I don’t think we’ve seen the bottom yet. And I’d like to be more optimistic, but the reason I say this is, when it comes to oil [and] other commodities, we’re still seeing shocks make their way through the system,” Ann Berry, Wheelhouse chief investment officer, told Yahoo Finance Live on Tuesday.

“We’re not done when it comes to oil and gas yet,” she added. “The U.K. and Europe have said that by the end of this year they’ll start weaning themselves from Russian exports – it’s not fast enough. And if the situation in Ukraine doesn’t get better, I do think there’s a scenario here where Europe will be pushed to take tougher actions faster, which is going to send oil prices only one way which is up from where it is right now.”

—

4:00 p.m. ET: Nasdaq jumps 3.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in biggest advance in a year

Here were the main moves in markets as of 4:00 p.m. ET:

  • S&P 500 (^GSPC): +107.16 (+2.57{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,277.86

  • Dow (^DJI): +652.65 (+2.00{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,285.29

  • Nasdaq (^IXIC): +459.99 (+3.59{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,255.55

  • Crude (CL=F): -$14.10 (-11.40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $109.60 a barrel

  • Gold (GC=F): -$49.40 (-2.42{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,993.90 per ounce

  • 10-year Treasury (^TNX): +7.6 bps to yield 1.9480{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

1:11 p.m. ET: Crude oil prices sink, Brent drops more than 12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after Ukraine official says country is ‘ready for a diplomatic solution’

Prices for West Texas intermediate and Brent crude oil prices sank Wednesday afternoon after a Ukrainian foreign policy aide to President Volodymyr Zelenskiy said the country was “ready for a diplomatic solution,” according to an interview with Bloomberg Television.

“Our first and foremost pre-condition for having such kind of negotiations is immediate cease-fire and withdrawal of Russian troops,” Ihor Zhovkva, deputy chief of staff to Zelenskiy, told Bloomberg. He added, however, that Ukraine would not trade “a single inch” of Ukrainian territory to Russia, and noted that Ukraine will continue to pursue NATO membership.

Zelenskiy also reiterated to German media outlet Bild TV Wednesday that he believed “only after the direct talks between the two presidents can we end this war,” referring to discussions with Russian President Vladimir Putin. For now, Zelenskiy has not had direct contact with Putin.

Brent crude oil prices dropped more than 12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to trade just above $112 per barrel, while West Texas intermediate sank to hover just over $111 per barrel.

—

10:47 a.m. ET: Bitcoin prices jump 9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, topping $42,000 after Biden announces crypto regulation executive order

The White House on Wednesday unveiled President Joe Biden’s executive order creating a framework for agencies to study and come up with a government-wide approach to regulating cryptocurrencies.

Bitcoin prices jumped nearly 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to top $42,000 following the announcement, which had been hinted at for weeks now. The executive order was originally set to be signed last month, though the timing was shifted due to the Russia-Ukraine crisis, Yahoo Finance’s Jennifer Schonberger reported.

One of the key tenets of the order calls for the government to explore a central bank digital currency (CBDC).

“The Order directs the U.S. Government to assess the technological infrastructure and capacity needs for a potential U.S. CBDC in a manner that protects Americans’ interests,” according to the White House. “The Order also encourages the Federal Reserve to continue its research, development, and assessment efforts for a U.S. CBDC, including development of a plan for broader U.S. Government action in support of their work.”

—

10:14 a.m. ET: Job openings hold near record high in January: JOLTS

U.S. job openings held at a near-record level in January, with widespread labor shortages still weighing on the domestic economy while keeping leverage high for workers looking to switch jobs.

Vacancies totaled 11.263 million in the first month of 2022, the Labor Department said in its Job Openings and Labor Turnover Summary (JOLTS) on Wednesday. This compared to an upwardly revised 11.4 million openings in December, which marked a record in data going back to 2001. Consensus economists were looking for 10.950 million vacancies for January, according to Bloomberg consensus data.

The number of quits in January edged down just slightly, or by 151,000 compared to December, to reach 4.3 million. And the quits rate decreased to 2.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, which was still elevated but retreated from December’s record high of 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

—

9:32 a.m. ET: Stocks open sharply higher, Nasdaq gains more than 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

The three major indexes posted a rebound Wednesday morning to pare some recent declines as investors eyed the fallout from Russia’s invasion of Ukraine and mounting global sanctions.

The S&P 500, Dow and Nasdaq moved sharply higher Wednesday morning. Technology stocks led the way higher, helping the Nasdaq jump more than 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The Dow added more than 500 points, or 1.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. In the S&P 500, the consumer discretionary, information technology and financial sectors led the way higher.

Treasury yields rose across the curve as peak concerns over U.S. and global economic growth came down, and investors rotated back toward risk assets. The benchmark 10-year yield rose by nearly 4 basis points to break above 1.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

—

7:22 a.m. ET: Stocks point to a higher open, Dow futures gain 450+ point

Here’s where markets were trading Wednesday morning:

  • S&P 500 (^GSPC): +64.75 points (+1.55{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,233.50

  • Dow (^DJI): +459.00 (+1.41{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,061.00

  • Nasdaq (^IXIC): +257.50 (+1.94{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,524.50

  • Crude (CL=F): -$2.81 (-2.27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $120.89 a barrel

  • Gold (GC=F): -$21.60 (-1.06{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $2,021.70 per ounce

  • 10-year Treasury (^TNX): +3.9 bps to yield 1.91{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

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

Here’s where stocks were trading Tuesday evening:

  • S&P 500 futures (ES=F): -11.50 points (-0.28{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,157.25

  • Dow futures (YM=F): -44 points (-0.13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 32,558.00

  • Nasdaq futures (NQ=F): -53.25 points (-0.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,213.75

NEW YORK, NEW YORK - MARCH 08: Traders work on the floor of the New York Stock Exchange (NYSE) on March 08, 2022 in New York City. The Dow was up slightly in morning trading as the Russian invasion of Ukraine continues to unsettle global markets. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – MARCH 08: Traders work on the floor of the New York Stock Exchange (NYSE) on March 08, 2022 in New York City. The Dow was up slightly in morning trading as the Russian invasion of Ukraine continues to unsettle global markets. (Photo by Spencer Platt/Getty Images)

—

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

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard, and LinkedIn

Posted on

Stock futures recover some losses after S&P 500 tumbles into correction

Stock futures recover some losses after S&P 500 tumbles into correction

Stock futures opened larger Tuesday evening right after a steep offer-off in the course of the standard investing day, which pushed the S&P 500 and Dow to their cheapest settlements so significantly of 2022.

Contracts on the S&P 500 rose. The blue-chip index experienced shut lower by just above 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on Tuesday, bringing it a lot more than 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from its record closing high from Jan. 3 — or beneath the threshold to have entered a correction. The Nasdaq and Dow each also finished in sharply in the crimson.

Hopes of a diplomatic resolution for tensions among Russia and Ukraine appeared to deteriorate on Tuesday, as President Joe Biden publicly identified as Russia’s go to deploy troops to separatist regions of Ukraine “the beginning of a Russian invasion” of the area. The U.S. also unleashed a initial tranche of sanctions on Russian financial establishments, sovereign financial debt and quite a few essential men and women in the nation. Late Tuesday, U.S. Secretary of Condition Antony Blinken also claimed he experienced named off a conference with his Russian counterpart, Overseas Minister Sergei Lavrov, that was meant to just take place this week.

Danger belongings slid on Tuesday as investors considered the fiscal marketplace implications of an escalating danger of military assault and larger sanctions on Russia. As European allies also coordinated their response to Russia’s increased armed forces existence in and all around Ukraine, Germany halted acceptance of the Nord Stream 2 natural fuel pipeline that would have deepened western Europe’s energy connection to Russia, the world’s largest normal gas exporter. Crude oil price ranges spiked to a 7-year higher, and Brent crude neared $100 for each barrel as traders contemplated the possible for additional electrical power-connected sanctions on Russia, the 3rd-major oil producer in the earth.

For U.S. buyers, the mounting geopolitical problems also more complicate the future move by the Federal Reserve, which has so considerably signaled it is prioritizing bringing down inflationary pressures. Even though buyers are currently pricing in an at minimum 25 basis stage desire rate hike from the Fed at its mid-March meeting, the tensions in between Russia and Ukraine — and prospective more price tag improves that an escalating conflict could stoke — generate a additional communication and policy complexity for the central bank.

“If the status quo retains, all we are likely to see is a extremely minimal effects on growth and inflation. Need to we see a full-fledged invasion adopted by considerably more durable sanctions, then we’re likely to be in a incredibly various world,” Joe Brusuelas, RSM chief economist, advised Yahoo Finance Live on Tuesday. “Our baseline is now anticipating a 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} maximize in the cost of oil. Now that is from two weeks in the past — we’re about 7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of the way there. If that happens, you may see 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} shaved off growth this yr .. and you may see an addition 2.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} or thereabouts maximize in inflation.”

“The Federal Reserve and their worldwide central banking brethren are in a pretty tricky situation now,” he included. “They are likely to have to hike into what could be an power shock and a slowing world financial state. My sense is the Federal Reserve should to hike by 25 foundation factors at the March meeting, but they should to use the opportunity in equally the communique and the Summary of Economic Projections, to note the threats all around the evolving world surroundings.”

—

6:13 p.m. ET Tuesday: Inventory futures recuperate some losses

Below ended up the major moves in markets Tuesday evening:

  • S&P 500 futures (ES=F): +16.75 points (+.39{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,316.75

  • Dow futures (YM=F): +99 factors (+.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 33,624.00

  • Nasdaq futures (NQ=F): +75.5 points (+.54{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,938.25

Photo by: NDZ/STAR MAX/IPx 2022 2/17/22 Atmosphere at the NY Stock Exchange in New York City.

Image by: NDZ/STAR MAX/IPx 2022 2/17/22 Atmosphere at the NY Inventory Trade in New York Town.

—

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

Go through the most current fiscal and enterprise news from Yahoo Finance

Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard, and LinkedIn

Posted on

Top Ohio court skeptical of insurance coverage for COVID business losses

Top Ohio court skeptical of insurance coverage for COVID business losses

Store window of a sporting goods keep in downtown Cincinnati, Ohio. Aaron Doster-Usa Currently Athletics

Sign up now for Cost-free unlimited obtain to Reuters.com

  • Ohio Supreme Courtroom weighs whether coverage available through industrial property insurance coverage
  • Coverage marketplace has defeated hundreds of similar situations nationally

(Reuters) – Justices on Ohio’s top rated court docket expressed skepticism on Tuesday that professional house coverage guidelines protect any of the losses companies sustained because of to disruptions induced by the COVID-19 pandemic.

In the third this sort of circumstance to attain a state’s top rated courtroom, the Ohio Supreme Courtroom appeared possible to sign up for a greater part of largely federal courts nationwide that have turned down hundreds of claims by corporations for insurance policy protection amid the pandemic.

As a attorney for an audiology expert services provider that introduced a proposed course action from Cincinnati Insurance policy Co argued the virus could cause home harm entitling firms to protection, justices questioned that premise.

Sign-up now for Absolutely free unrestricted entry to Reuters.com

“I’m having difficulties with how you outline that as physical injury,” Justice Sharon Kennedy said.

Though insurance policy guidelines are governed by state law, the insurance policy industry’s victories fending off statements in very similar cases have mainly come from federal courts. Only two other state’s supreme courts, in Massachusetts and Vermont, have taken up the concern.

The Ohio Supreme Court docket read the situation at the ask for of U.S. District Choose Benita Pearson, the federal decide presiding around Neuro-Conversation Providers Inc’s lawsuit, who claimed it elevated an essential condition law dilemma the justices must have a chance to handle.

Nicholas DiCello, a law firm for Neuro-Communication Services at Spangenberg Shibley & Liber, reported the coronavirus was no distinctive than other odorless, invisible gases or brokers like carbon monoxide or radon that can result in residence harm claims.

DiCello advised the court docket a lengthy line of pre-pandemic conditions supported coverage in incidents when those people gases or agents render a company unusable and argued that coronavirus particles can just as equally problems a assets when a person emits them.

“They are bodily particles that have a bodily manifestation,” he explained. “They can be calculated. They can be calculated.”

“They can also be wiped away, as is evidenced by what took place just before this podium was utilized,” Chief Justice Maureen O’Connor retorted, noting that a court docket employee had cleaned the podium DiCello spoke from shortly ahead of his argument.

Some of the court’s six other users such as Kennedy and Justice Patrick DeWine seized on that analogy to press DiCello on how a company could maintain any bodily harm from the virus that would warrant coverage.

“It still exists,” Kennedy explained of the podium. “You wipe it off, it continue to exists. It can be unmarred, it is unharmed.”

Neuro-Conversation has argued it was harmed by remaining compelled early in the pandemic to shut by get of Ohio Governor Mike DeWine, a Republican who is Justice DeWine’s father, to sluggish the virus’ distribute.

But Daniel Litchfield, a law firm for Cincinnati Insurance policy at Litchfield Cavo, argued that government closure did not suggest that the Neuro-Communication could get well its losses by means of residence insurance coverage.

“Most government orders that I’m familiar with as a small business man or woman do value companies funds,” he stated. “Which is element of the cost of carrying out business in a controlled or partially regulated economic system.”

He mentioned only a suspension in small business brought on by actual physical harm, like a fire, could entitle a policyholder to protection.

“We should not disregard the term ‘physical,'” he stated.

The situation is Neuro-Communication Solutions Inc. v. The Cincinnati Coverage Co, Ohio Supreme Court docket, No. 2021-0130.

For Neuro-Conversation Products and services: Nicholas DiCello of Spangenberg Shibley & Liber

For Cincinnati Insurance plan: Daniel Litchfield of Litchfield Cavo

(Note: This tale has been updated to accurate the number of condition supreme courts that have read very similar situations.)

Go through a lot more:

Massachusetts top court weighs coverage protection for COVID organization losses

Sign up now for Absolutely free limitless accessibility to Reuters.com

Our Specifications: The Thomson Reuters Have faith in Ideas.

Nate Raymond

Nate Raymond reviews on the federal judiciary and litigation. He can be achieved at nate.raymond@thomsonreuters.com.

Posted on

Stock futures add to losses ahead of Fed decision

Stock futures add to losses ahead of Fed decision

Stock futures opened decreased Tuesday evening immediately after one more volatile session on Wall Street, as investors seemed to the Federal Reserve’s most up-to-date financial plan conference and press conference to clear away some uncertainty on the outlook for financial coverage. 

Contracts on the S&P 500 sank. The index shut reduce for a fifth time in 6 classes on Tuesday, in a session which observed shares rebound off their lows but fail to break into beneficial territory, as experienced been the circumstance through Monday’s rollercoaster investing day. Technology stocks lagged, and the Nasdaq Composite dropped much more than 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to sink even more into a correction.

The advertising strain for some major technology names ongoing into the submit-market session, as Microsoft (MSFT) get rid of extra than 4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} even after offering better-than-expected fiscal next-quarter income and earnings. Shares of chipmaker Texas Instruments (TXN) rose, having said that, right after supplying a greater-than-expected outlook for latest-quarter gross sales regardless of concerns about ongoing semiconductor shortages. Corporations like Tesla (TSLA) and Intel (INTC) are poised to report results on Wednesday. 

For marketplaces, the Federal Reserve’s most recent financial plan assertion and press conference from Fed Chair Jerome Powell on Wednesday will be the banner occasion. Traders have been pricing in a additional aggressively hawkish central bank as the Fed functions to rein in inflation presently working at a four-10 years significant. Above the previous few months, the Fed has signaled via its December meeting minutes and in public remarks that it will most likely begin raising fascination prices from latest in close proximity to-zero ranges in March. It is also thinking of starting to roll property off its balance sheet right after amassing some $9 trillion in its bond portfolio. 

“If you think about what is took place in the markets, it suggests the degree of sensitivity market individuals have to what is going to be the new level atmosphere and the new liquidity atmosphere,” David Bailin, Citi chief financial commitment officer and head of Citi world wide wealth management, instructed Yahoo Finance Stay on Tuesday.

“The Fed created a key reversal about five months ago when it explained that it was each heading to raise rates and also take into consideration quantitative tightening, which proficiently indicates that you and I are going to have to finance the financial debt that is required issued by the Treasury alternatively of the Fed,” he added. “So with all of that, I think they are going to appear at what happened [in markets] and they are heading to say, our aim in this article is not to shut the economic climate and to make factors slow. The target right here is to sign their willingness to combat inflation to the extent that they can.”

Other strategists agreed that the Fed’s modern, much more hawkish tilt has remaining traders so considerably with more inquiries than answers. Even though the Fed’s December projections proposed policymakers ended up likely to elevate rates three situations this yr, several industry members have now priced in anticipations for four hikes, although others have prompt as several as five or 6 hikes may be on the table specified the latest inflationary backdrop. And however Powell has recommended the Fed would continue thinking about quantitative tightening, the central financial institution has but to supply a concrete timeline for the get started of this course of action. 

“We are in a interval of heightened uncertainty,” John Bellows, Western Asset portfolio supervisor, instructed Yahoo Finance on Tuesday. “The market’s hoping to figure out the place that pivot finishes, what sooner or later anchors Fed coverage going. forward and it is still trying to calibrate effectively the scale and magnitude of that Fed pivot.” 

—

6:15 p.m. ET Tuesday: Inventory futures add to before losses

Here is exactly where futures commenced buying and selling Tuesday evening:

  • S&P 500 futures (ES=F): -31 details (-.71{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,318.00

  • Dow futures (YM=F): -164 points (-.48{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,021.00

  • Nasdaq futures (NQ=F): -156.50 points (-1.11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,984.25

Traders work on the floor of the New York Stock Exchange at the opening bell January 25, 2022. - Wall Street stocks fell early January 25 following a deluge of mostly solid corporate earnings but a lower global growth forecast from the IMF. (Photo by TIMOTHY A. CLARY / AFP) (Photo by TIMOTHY A. CLARY/AFP via Getty Images)

Traders work on the flooring of the New York Stock Exchange at the opening bell January 25, 2022. – Wall Avenue stocks fell early January 25 adhering to a deluge of largely stable corporate earnings but a lower world-wide development forecast from the IMF. (Photograph by TIMOTHY A. CLARY / AFP) (Picture by TIMOTHY A. CLARY/AFP via Getty Images)

—

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

Study the newest economic and company news from Yahoo Finance

Follow Yahoo Finance on Twitter, Fb, Instagram, Flipboard, LinkedIn, YouTube, and reddit

Posted on

Stocks claw back losses to close out volatile day

Stocks claw back losses to close out volatile day

Stocks clawed back losses on Monday as investors looked ahead to a busy week of corporate earnings results, economic data and a Federal Reserve monetary policy-setting meeting after an already volatile stretch of trading. 

The Nasdaq Composite ended in slightly positive territory after dropping 4.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} at session lows. And earlier, the S&P 500 was off by more than 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from its record closing high from Jan. 3 before recouping declines. The Dow recovered losses of more than 1,100 points to end nearly 100 points higher. 

The CBOE volatility index, or VIX, jumped to as high as about 37.95, reaching its highest level since November 2020.

Prices for major cryptocurrencies tracked the decline in equities. Bitcoin fell to about $33,000 Monday morning, sinking by more than 50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from its early November high. And ethereum was down more than 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to hover just over $2,000 as of Monday morning in New York. 

Expectations for tighter financial conditions out of the Federal Reserve this year have served as one major factor weighing on equity prices, especially for highly valued stocks that had benefited from the easy financial conditions and high liquidity environment the Fed had contributed to since 2020. 

This week’s Fed meeting, with a new monetary policy statement and press conference from Federal Reserve Chair Jerome Powell on Wednesday, is expected to produce virtually no immediate changes to policy. However, as the Fed looks to rein in inflation that has ballooned by the most in four decades during the pandemic-era recovery, this meeting will likely set the stage for the Fed to indicate it is nearing the start of interest rate hikes and has been further contemplating rolling off assets from its nearly $9 trillion balance sheet. 

And the Fed is unlikely to be deterred from moving in this more hawkish direction even in the wake of recent volatility across markets, some strategists suggested.

“Until we get a further selloff in risk assets, the Fed will simply not be convinced that raising interest rates and reducing the size of its balance sheet in 2022 will more likely cause a recession rather than a soft landing,” Nicholas Colas, co-founder of DataTrek Research, wrote in a note on Monday. 

“Either outcome would dampen inflation, of course, which is why 10-year Treasury yields have stopped climbing,” he added. “But only a soft landing would allow public companies to continue to post strong earnings. The risk of a hard landing is why U.S. large caps are under so much stress.”

A number of large-cap corporations are also set to report earnings results throughout this week, offering another catalyst to markets. The packed slate of earnings results on deck includes Apple (AAPL), Microsoft (MSFT), 3M (MMM), McDonald’s (MCD) and Boeing (BA), among many others. 

As of the start of the week, only about 13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of S&P 500 companies had reported quarterly results, according to Goldman Sachs. And so far, one trend that has begun to emerge has been relatively weak commentary about the outlook for this year. 

“Investors are very interested in forward-looking guidance from managements, and recent information on that front has been concerning,” Goldman Sachs chief U.S. equity strategist David Kostin wrote in a note. “Bank executives emphasized higher operating costs in the coming year.”

“Following the release of 4Q results, only six companies in the S&P 500 provided formal near-term guidance for 1Q 2022,” he added. “Unfortunately, five of the six firms guided below consensus for next quarter, including three of the stocks that actually beat expectations in 4Q.” 

—

4:05 p.m. ET: Stocks claw back losses to close out volatile day: Nasdaq ends 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} higher after shedding 4.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} at session lows

Here were the main moves in markets as of 4:05 p.m. ET:

  • S&P 500 (^GSPC): +12.18 (+0.28{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,410.12

  • Dow (^DJI): +99.13 (+0.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,364.50

  • Nasdaq (^IXIC): +86.21 (+0.63{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,855.13

  • Crude (CL=F): -$1.36 (-1.60{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $83.78 a barrel

  • Gold (GC=F): +$9.70 (+0.53{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,841.50 per ounce

  • 10-year Treasury (^TNX): -1.2 bps to yield 1.7350{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

2:03 p.m. ET: Stocks pare some losses

Here’s where markets were trading Monday afternoon: 

  • S&P 500 (^GSPC): -65.39 (-1.49{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,322.55

  • Dow (^DJI): -459.37 (-1.34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,806.00

  • Nasdaq (^IXIC): -189.03 (-1.37{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,572.54

  • Crude (CL=F): -$1.66 (-1.95{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $83.48 a barrel

  • Gold (GC=F): +$9.90 (+0.54{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,841.70 per ounce

  • 10-year Treasury (^TNX): -2.1 bps to yield 1.726{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

11:37 a.m. ET: Many tech executives ‘feel very bullish on the prospects of their companies’ despite stock volatility: Union Square Advisors president

Though the latest stretch of market volatility has hit technology shares especially hard, many tech executives are still feeling upbeat about the longer-term prospects of their companies, according to at least one pundit. 

“In the public markets, with all the volatility, that creates day-to-day challenges, although we think that’s going to settle out here as we get through sort of the next wave of Fed decisions and this round of earnings,” Union Square Advisors co-founder and president Ted Smith told Yahoo Finance Live on Monday.

“Most tech executives with whom we speak feel very bullish on the prospects of their companies, feel very good about how they came out of the challenges of the pandemic and the resilience that those companies showed over the course of the last year and a half, two years,” he added. “And so most of them are feeling quite good about the medium and long term prospects for their individual companies but acknowledge that the near term at least stock market challenges, to the extent that those have an impact on their companies, make for a bit of a bumpy ride.”

—

10:47 a.m. ET: U.S. private sector services, manufacturing growth decelerates amid Omicron surge 

Growth in both the private services and manufacturing sectors slowed sharply in early January as the Omicron variant exacerbated existing supply chain and labor shortages challenges.

IHS Markit’s preliminary January services purchasing managers index (PMI) slid to 50.9 from December’s 57.6. This marked the lowest level in about 18 months. Readings above the neutral level of 50.0 indicate expansion in a sector. Meanwhile, the institution’s manufacturing PMI also fell in January to a 15-month low, reaching 55.0 compared to December’s 57.7.

“Soaring virus cases have brought the U.S. economy to a near standstill at the start of the year, with businesses disrupted by worsening supply chain delays and staff shortages, with new restrictions to control the spread of Omicron adding to firms’ headwinds,” Chris Williamson, chief business economist at IHS Markit, wrote in a note. “However, output has been affected by Omicron much more than demand, with robust growth of new business inflows hinting that growth will pick up again once restrictions are relaxed.” 

—

9:30 a.m. ET: Stocks open lower

Here’s where markets were trading Monday morning: 

  • S&P 500 (^GSPC): -75.94 (-1.73{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,322.00

  • Dow (^DJI): -518.59 (-1.51{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,746.78

  • Nasdaq (^IXIC): -290.87 (-2.11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,497.58

  • Crude (CL=F): -$1.65 (-1.94{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $83.49 a barrel

  • Gold (GC=F): +$7.80 (+0.43{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,839.60 per ounce

  • 10-year Treasury (^TNX): -3 bps to yield 1.717{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

7:41 a.m. ET Monday: Stock futures fall 

Here’s where markets were trading Monday morning:

  • S&P 500 futures (ES=F): -12.5 points (-0.28{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,377.50

  • Dow futures (YM=F): -65 points (-0.19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,092.00

  • Nasdaq futures (NQ=F): -74.75 points (-0.52{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,351.75

  • Crude (CL=F): -$0.00 (-0.00{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $85.14 a barrel

  • Gold (GC=F): +$8.30 (+0.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,840.10 per ounce

  • 10-year Treasury (^TNX): -1 bp to yield 1.737{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

NEW YORK, NEW YORK - JANUARY 20: Traders work on the floor of the New York Stock Exchange (NYSE) on January 20, 2022 in New York City. The Dow Jones Industrial Average was up over 200 points in morning trading following days of declines. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – JANUARY 20: Traders work on the floor of the New York Stock Exchange (NYSE) on January 20, 2022 in New York City. The Dow Jones Industrial Average was up over 200 points in morning trading following days of declines. (Photo by Spencer Platt/Getty Images)

—

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

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, YouTube, and reddit

Posted on

UK hospitality groups take on insurers over lockdown losses

UK hospitality groups take on insurers over lockdown losses

(Reuters) — Some of the world’s largest insurers are bracing as a next wave of multimillion-pound lawsuits, brought by battling British pubs, dining places and bakery chains above lockdown losses, will start hitting London’s courts subsequent 7 days.

Zurich, MS Amlin, Liberty Mutual, Allianz and Axa are among individuals due in court one year just after Britain’s Supreme Court docket dominated that lots of insurers experienced been incorrect to deny hundreds of businesses, battered by the COVID-19 pandemic, business enterprise interruption payouts.

Insurers have since compensated out £1.3 billion ($1.8 billion), according to the Monetary Perform Authority. But the ruling did not deal with all coverage wordings and, wherever it deemed promises legitimate, some businesses are now disputing payout ranges.

Policyholders and insurers have been at loggerheads more than regardless of whether company interruption insurance policies present protect for COVID-19-linked losses considering that authorities lockdowns in March 2020 shuttered retailers, bars and dining places.

Corbin & King, owner of London’s Wolseley and Delaunay eating places, starts off off with a Significant Courtroom trial on Monday that has been accelerated by the courts because of its curiosity to other policyholders.

It is suing Axa for all over £4.5 million in a dispute that hinges in portion on the scope of “denial of access” protect, intended to shield insured venues that are shut by community authorities on health and fitness grounds.

Axa declined to comment. Corbin & King did not respond to a ask for for remark.

Other businesses have most likely tens of thousands and thousands of kilos riding on the final result of the situation, stated Mark Pring, lover at law organization Reed Smith.

“We have shoppers sitting down there who are incredibly fascinated for the reason that their wordings are either materially similar or overlap,” he said.

3 other organizations are also having on their insurers in intently viewed disputes that target in section on the aggregation of losses: irrespective of whether insurance policies have been triggered several moments all through the pandemic and qualify for a number of payments.

Slug and Lettuce proprietor Stonegate, Britain’s premier pub group, is bringing an £845 million declare in opposition to Zurich, MS Amlin and Liberty Mutual, which insured 760 of its 4,500 venues.

A trial, which will also analyze whether government support payments can be deducted from statements, is scheduled for June.

The three insurers allege their liability is constrained to £17.5 million,  of which £14.5 million has been paid out, in accordance to courtroom documents. They declined to remark Friday.

Multimillion-pound statements have also been submitted by sandwich-to-pasty chain Greggs towards Zurich and by Strada and Coppa Club operator A variety of Eateries towards Allianz.

Various Eateries and Allianz claimed in a joint assertion they had been in search of a ruling on “a range of issues” remaining unresolved by the Supreme Court docket. Greggs declined to comment.