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January 15, 2022

Stocks extend losses amid mixed bank earnings, retail sales miss

Stocks ended mixed on Friday at the end of a volatile week, with investors monitoring a mixed set of bank earnings and a bigger-than-expected drop in U.S. retail sales.

The S&P 500 and Nasdaq closed at the highs of the trading day. The Nasdaq fluctuated between gains and losses after a 2.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} drop on Thursday, but closed up 0.59{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} at 14,893.75.

The Dow underperformed, dropping more than 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} at session lows as the index’s bank stock components declined after delivering earnings. The index closed down 0.56{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} at 35,911.81. JPMorgan Chase (JPM) shares fell 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after the company posted lower-than-expected fourth-quarter trading revenues and rising costs as compensation expenses increased. Citigroup (C) shares also fell after posting a similar miss on fixed-income and equities trading revenues for the quarter.

Peer bank Wells Fargo (WFC) shares rose, on the other hand, after posting quarterly revenue that topped estimates as both commercial and consumer loans picked up at the end of last year.

New economic data came in weaker-than-expected on Friday, adding to the risk-off tone in markets. U.S. retail sales fell 1.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in December month-on-month, missing estimates for an only 0.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} dip and marking the biggest drop since February 2021. November’s sales were also downwardly revised to show 0.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} monthly increase, compared to the 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise previously reported.

Investors this week have been weighing concerning signs of lingering price pressures across the U.S. economy against assertions from key central bank officials that the Federal Reserve is ready to take action to bring down inflation.

In Fed Governor Lael Brainard’s hearing before the Senate Banking Committee on Thursday, she suggested the central bank could begin raising interest rates — a move that would tighten financial conditions and help bring down inflation — “as soon as asset purchases are terminated.” The Federal Reserve is currently set to end its asset-purchase tapering process in March.

JPMorgan Chase CEO Jamie Dimon said during this morning’s earnings call that he expected that on interest rate hikes this year, “there’s a pretty good chance there will be more than four — there could be six or seven.”

“What we’re seeing right now is a repricing of the markets, given anticipated rate hikes… That’s going to be the catalyst driving down the market,” WealthWise Financial CEO Loreen Gilbert told Yahoo Finance Live on Thursday. “It’s going to be a wild ride.”

And the bevy of recent inflation data has so far helped strengthen the case for a near-term move on monetary policy, many economists suggested. Thursday’s Producer Price Index (PPI) showed the biggest annual rise in wholesale prices on record, in data going back to 2010, even as monthly price gains moderated slightly. And this report came just a day following the December Consumer Price Index (CPI) showing the biggest surge in inflation since 1982. Many economists suggested inflationary pressures would continue at least through the first months of this year before gradually easing.

“Two of the biggest things have been the supply chain disruptions and the fiscal stimulus,” Matthew Miskin, John Hancock Investment Management co-chief investment strategist, told Yahoo Finance Live. “As the pandemic comes more under control this year, as the Omicron wave hopefully dissipates, we likely see the supply chain disruptions come off, and then we’re not going to get more fiscal stimulus … That in our view does cause inflation to come down over the course of the year.”

Rising prices have also been hitting companies’ profits as labor costs jump. Of the nearly two dozen S&P 500 companies that had reported fourth-quarter earnings results as of mid-week, 60{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of these cited a negative impact from higher labor costs or shortages to sales or profits, according to FactSet.

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4:02 p.m. ET: S&P 500 and Nasdaq close at highs of day

Here were the main moves in markets as of 4:02 p.m. ET:

S&P 500 (^GSPC): 3.79 (0.08{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4662.82
Dow (^DJI): -202.34 (-0.56{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,911.28
Nasdaq (^IXIC): 86.94 (0.59{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,893.75
Crude (CL=F): -$2.16 (2.63{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $84.28 a barrel
Gold (GC=F): -$4.90 (-0.27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,816.50 per ounce
10-year Treasury (^TNX): +8 bps to yield 1.789{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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11:35 a.m. ET: Biden administration names three nominees to fill spots on Fed Board of Governors

The Biden administration announced its nominees to fill out the Federal Reserve Board of Governors, tapping Sarah Bloom Raskin, Lisa Cook, and Philip Jefferson for the roles. Each nominee must still go before the Senate Banking Committee for confirmation.

Earlier this week, Federal Reserve Chair Jerome Powell appeared before the Senate Banking Committee in his renomination hearing to remain as Fed Chair for second term. Current Fed Governor Lael Brainard also had her nomination hearing to become Fed Vice Chair.

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10:15 a.m. ET: Manufacturing production unexpectedly falls in December

The U.S. manufacturing sector showed more signs of slipping amid the latest surge in COVID-19 cases and materials shortages.

According to new Federal Reserve data Friday, manufacturing output declined by 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in December to reverse course after a 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise in November. Consensus economists were looking for a 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} monthly rise in production in December, based on Bloomberg data. Manufacturing accounts for about 12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of overall economic activity in the U.S.

A drop in auto production contributed heavily to the headline decline, with ongoing chip shortages impacting the industry. Vehicle production was down 1.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in December following a rise of 1.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in November.

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10:11 a.m. ET: University of Michigan sentiment index drops to 68.8 in January, in second-lowest reading in a decade

Consumer sentiment fell more than expected in early January to reach one of its lowest readings in 10 years, as concerns over the inflation outlook and COVID-19 weighed on optimism.

The University of Michigan’s preliminary January Surveys of Consumers index came in at 68.8, falling from December’s 70.6. This was below consensus estimates for a reading of 70.0, according to Bloomberg data.

“While the Delta and Omicron variants certainly contributed to this downward shift, the decline was also due to an escalating inflation rate,” Richard Curtin, chief economist for the Surveys of Consumers, wrote in a statement. “Three-quarters of consumers in early January ranked inflation, compared with unemployment, as the more serious problem facing the nation.”

“Given that inflation’s impact is regressive, the Sentiment Index fell by 9.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} among households with total incomes below $100,000 in early January, but rose by 5.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} among households with incomes over that amount,” he added.

Overall, consumers’ one-year inflation expectations edged back up to 4.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, or the highest level since 2008, from December’s 4.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

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9:30 a.m. ET: Stocks open lower after disappointing economic data, mixed bank earnings

Here’s where markets were trading just after the opening bell Friday morning:

S&P 500 (^GSPC): -28.25 (-0.61{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,630.78
Dow (^DJI): -337.64 (-0.76{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,775.98
Nasdaq (^IXIC): -51.93 (-0.34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,756.56
Crude (CL=F): +$0.56 (+0.68{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $82.68 a barrel
Gold (GC=F): +$3.90 (+0.21{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,825.30 per ounce
10-year Treasury (^TNX): +2.5 bps to yield 1.734{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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8:32 a.m. ET: Retail sales drop 1.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in December, missing estimates

Retail sales posted a large-than-expected drop in December, as consumer spending pulled back from earlier in 2021.

The total value of U.S. retail sales was down 1.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in December compared to November, the Commerce Department said Friday. This was the first monthly drop since July, and the biggest decline since February 2021. Consensus economists had looked for a dip of just 0.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, according to Bloomberg data. In November, retail sales rose 0.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, with this figure also downwardly revised. from the 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise previously. reported.

By category, non-store retailers, or e-commerce stores, saw by far the biggest drop in monthly retail sales, with these falling 8.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in December. Department stores also posted a 7.0{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} drop in sales, and furniture and home furnishing sales declined by 5.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Still, the weakness was broad-based in December, and nearly every category of retailer saw a monthly drop in sales. Notably, building material stores saw a nearly 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} sales rise during the month, and miscellaneous store retailers’ sales rose by 1.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

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7:43 a.m. ET: ‘The economy continues to do quite well despite headwinds related to the Omicron variant’: Dimon

JPMorgan Chase CEO Jamie Dimon struck an upbeat tone about the trajectory of the economic recovery even given the latest disruptions caused by the rapidly spreading Omicron variant.

“The economy continues to do quite well despite headwinds related to the Omicron variant, inflation and supply chain bottlenecks,” Dimon said in the bank’s fourth-quarter earnings report on Friday. “Credit continues to be healthy with exceptionally low net charge-offs, and we remain optimistic on U.S. economic growth as business sentiment is upbeat and consumers are benefiting from job and wage growth.”

Both JPMorgan Chase and Wells Fargo cited an increase in loans as contributing to results at the end of last year, suggesting consumers and businesses were remaining confident in borrowing and spending.

However, JPMorgan’s fixed-income and stock-trading businesses saw sales fall over last year. Fixed income sales and trading revenue declined 16{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over last year to $3.33 billion, which the bank attributed to “a challenging trading environment in rates, as well as lower revenues in credit and currencies & emerging markets compared to a strong prior year.” Equities sales and trading revenue dipped 1.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $1.95 billion.

Overall, adjusted revenue grew 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over last year to reach $30.35 billion, topping estimates for $30.01 billion, according to Bloomberg data. Earnings per share were $3.33, exceeding expectations for $2.99.

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7:32 a.m. ET Friday: Stock futures give up earlier gains, point to a lower open

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

S&P 500 futures (ES=F): -5 points (-0.11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,647.00
Dow futures (YM=F): -37 points (-0.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,952.00
Nasdaq futures (NQ=F): -30.75 points (-0.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,459.50
Crude (CL=F): +$0.58 (+0.71{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $82.70 a barrel
Gold (GC=F): +$0.90 (+0.05{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,822.30 per ounce
10-year Treasury (^TNX): +3.3 bps to yield 1.742{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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6:01 p.m. ET Thursday: Stock futures open slightly higher

Here’s where markets were trading Thursday evening:

S&P 500 futures (ES=F): +4.25 points (+0.09{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,656.25
Dow futures (YM=F): +37 points (+0.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 36,026.00
Nasdaq futures (NQ=F): +18.75 points (+0.12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,509.00

NEW YORK, NEW YORK - JANUARY 11: Traders work on the floor of the New York Stock Exchange (NYSE) on January 11, 2022 in New York City. After yesterdays sell off, the Dow was down only slightly in morning trading. (Photo by Spencer Platt/Getty Images) — NEW YORK, NEW YORK – JANUARY 11: Traders work on the floor of the New York Stock Exchange (NYSE) on January 11, 2022 in New York City. After yesterdays sell off, the Dow was down only slightly in morning trading. (Photo by Spencer Platt/Getty Images)

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

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January 14, 2022

Asian Stocks Mixed as Inflation Augurs Fed Rate Hikes | Business News

By ELAINE KURTENBACH, AP Business enterprise Writer

BANGKOK (AP) — Shares ended up generally reduce in Asia on Thursday soon after the latest report of surging costs in the U.S. appeared to keep the Federal Reserve on keep track of to elevate fascination charges in coming months.

Tokyo, Shanghai and Seoul were being lower even though Hong Kong and Sydney innovative. U.S. futures declined, with the agreement for the S&P 500 down .2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and that for the Dow .1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} decreased.

Surging coronavirus circumstances in Asia have raised uncertainty about the speed of recovery from the pandemic.

The omicron coronavirus variant has swept throughout Australia and other international locations in the location regardless of substantial vaccination prices and stringent border guidelines. Japan claimed more than 13,000 new bacterial infections on Wednesday, the maximum level in four months. China, whose zero-COVID insurance policies are becoming challenged by outbreaks just weeks forward of the Beijing Wintertime Game titles, is screening and in some instances locking down full metropolitan areas.

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Tokyo’s Nikkei 225 index dropped .9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 28,499.08, even though the Shanghai Composite shed .3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 3,586.29. In Seoul, the Kospi missing .3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 2,962.99.

The Hold Seng in Hong Kong edged .1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} greater, to 24,432.51 and the S&P/ASX 200 added .3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 7,459.50.

The yield on the 10-year Treasury was constant at 1.74{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

Apart from the direct impression from significant coronavirus outbreaks on usual company exercise, spill about consequences on producing and shipping could even more hinder a rebound from the previous two years of disruptions.

“So significantly, the market’s reaction to the omicron wave has been reasonable, but it is value paying focus to problems about more impacts to world-wide supply chains which could cause chance-off trade,” Anderson Alves of ActivTtrades reported in a report.

On Wednesday, the S&P 500 rose .3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 4,726.35. The Dow Jones Industrial Ordinary eked out a .1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} gain, closing at 36,290.32. The Nasdaq composite rose .2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 15,188.39. All are on pace for a weekly get.

Scaled-down organization shares missing ground. The Russell 2000 index fell .8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 2,176.06.

Traders have been concentrated on a report from the Labor Section, which confirmed customer costs jumped 7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} very last month. Which is the swiftest yr-more than-yr pace in the client value index in practically four many years. The sharp enhance, which was in line with economists’ forecasts, came a day after Fed Chair Jerome Powell explained to Congress that the central bank stands ready to elevate fees to combat inflation.

The modest gains were led by technological know-how stocks, stores and other corporations that rely on immediate customer expending.

Scaled-down corporation shares lost floor. The Russell 2000 index fell 17.95 factors, or .8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, to 2,176.06.

Wall Avenue has been closely looking at growing inflation to gauge the impression on companies and individuals, as nicely as on the Fed’s system to trim its support for the economic system and markets.

The central bank is lessening bond purchases that served hold curiosity fees lower in the course of the virus pandemic.

The current market now places the chances of the Fed boosting small-term costs by at minimum a quarter stage in March at all over 75{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. A thirty day period in the past, it was about 36{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

Wall Avenue will get a different update on growing inflation on Thursday, when the Labor Division releases December effects from an index centered on U.S. wholesale selling prices. It demonstrates how inflation is influencing expenditures for corporations.

Businesses in several industries have been passing increased expenditures off to consumers, but have been warning that they will continue to come to feel a monetary impression mainly because of increased charges and provide chain problems.

Wall Avenue will be intently seeing the most up-to-date spherical of earnings to see how businesses are working with inflation.

Delta Air Lines experiences its final results on Thursday. Citigroup, JPMorgan Chase and Wells Fargo report success on Friday.

In other investing, U.S. benchmark crude oil misplaced 16 cents to $82.48 per barrel in digital buying and selling on the New York Mercantile Exchange. It obtained $1.42 to $82.64 for each barrel on Wednesday.

Brent crude, the basis for pricing global oils, dropped 17 cents to $84.50 per barrel.

The U.S. greenback slipped to 114.57 Japanese yen from 114.64 yen. The euro was unchanged at $1.1444.

AP Business enterprise Writers Damian J. Troise and Alex Veiga contributed.

January 2, 2022

Asian Shares Mixed as Omicron Worries Crimp Market Optimism | Business News

By YURI KAGEYAMA, AP Enterprise Author

TOKYO (AP) — Asian shares have been blended Tuesday, as optimism set off by a rally on Wall Avenue was dampened by considerations around the prospective effects of the omicron variant of coronavirus.

Japan’s benchmark Nikkei 225 jumped approximately 1.{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 28,960.31 in morning buying and selling. South Korea’s Kospi obtained .1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 3,002.72. Hong Kong’s Cling Seng fell .1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 23,201.42, when the Shanghai Composite dipped .2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 3,610.32. Buying and selling was closed in Australia for Boxing Working day.

Much of Asia has nonetheless to see surges in infections of the omicron variant now playing out in other parts of the environment, but authorities are warning the region likely would not be spared.

Japan has nevertheless to see such a wave of new conditions. Lots of places are bustling with yearend consumers, and many activities are getting held with spectators, despite the fact that most persons are wearing masks.

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New day-to-day scenarios in Japan have totaled about 200 these days. There have been reasonably handful of COVID-linked fatalities so much with some current times possessing none. Even now, analysts warned uncertainties lie forward.

“Record rallies are a tad as well optimistic,” claimed Vishnu Varathan of Mizuho Lender, pointing to large quantities of omicron scenarios in Europe and the U.S.

Technological innovation providers led U.S. stocks broadly increased on Monday, extending the market’s latest rally and nudging the S&P 500 to one more all-time high.

Wall Street kicked off the last 7 days in a banner yr for the inventory current market with mostly muted buying and selling as buyers returned from the Christmas holiday and a number of abroad markets remained shut.

The S&P 500 rose 1.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 4,791.19, its fourth straight acquire. The benchmark index, which capped a vacation-shortened week Thursday with a history high, is on rate to shut out the yr with a 27.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} obtain. It has notched 69 all-time highs so much this 12 months.

The Dow Jones Industrial Ordinary rose 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 36,302.38 and the technology-weighty Nasdaq rose 1.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 15,871.26.

The key indexes posted weekly gains last week as fears ebbed about the opportunity effects of the COVID-19 omicron variant. However, a great deal is however unsure about omicron, which is spreading promptly and prompting a return to pandemic limitations in some sites.

Tiny corporation shares also rose. The Russell 2000 index obtained .9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, to 2,261.46.

Trading is anticipated to be silent but probably risky this 7 days as the omicron coronavirus variant carries on to unfold promptly all over the U.S. and overseas. On the other hand most large buyers have shut out their positions for 2021, and are like to maintain their ground until finally following week.

Airline shares shut lessen on the information of pandemic-related cancellations. Delta Air Strains fell .8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and United Airways slipped .6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

Shares in cruise line operators also fell. Norwegian Cruise Line slid 2.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for just one of the most important declines in the S&P 500. Carnival dropped 1.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and Royal Caribbean fell 1.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

Authorities in a lot of nations have doubled down on vaccination initiatives as omicron outbreaks complicate endeavours stave off refreshing lockdowns even though hospitals are nonetheless under pressure from delta variant infections.

In vitality investing, benchmark U.S. crude included 27 cents to $75.84 from $75.57 a barrel in electronic trading on the New York Mercantile Exchange. It acquired $1.78 on Monday to $75.57.

Brent crude, the worldwide typical, rose 27 cents to $78.87 a barrel.

In currency investing, the U.S. greenback slipped to $114.86 from $114.87. The euro value $1.1325, inching down from $1.1327.

AP Organization Author Alex Veiga contributed.

December 9, 2021

Stocks mixed after two-day rally amid Pfizer’s Omicron vaccine update

Stocks traded mixed to pause after a two-day rally, as investors further considered updates around the Omicron variant and weighed a potential policy pivot by the Federal Reserve.

A day earlier, technology stocks outperformed to pull the Nasdaq higher by more than 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, in its best day since March. As of Tuesday’s close, the S&P 500 was less than 0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} below its levels from Nov. 24, or the session before the World Health Organization’s announcement of the Omicron’s discovery.

Treasury yields steadied after a jump on Tuesday, and the yield on the 10-year Treasury note traded just below 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. U.S. West Texas intermediate crude oil futures hovered around $71 per barrel, while Bitcoin slipped back near $50,000.

Investors have snapped up risk assets so far this week amid prospects that the Omicron variant may not pose as severe a health threat as previously feared. And elsewhere, the latest developments in Washington, D.C., indicated lawmakers were on track to raise the debt-ceiling before a Dec. 15 deadline, which if not extended would leave the U.S. Treasury without sufficient funds to repay U.S. debt holders. The House of Representatives voted Tuesday night to approve a bill paving the way for Senate lawmakers to raise the limit with a simple majority vote.

Pfizer (PFE) shares traded slightly higher after the company said that three doses of its Pfizer-BioNTech (BNTX) vaccine “neutralize” the Omicron variant, while noting that two doses “may not be sufficient to protect against infection” with Omicron. Other recent developments around the virus have also been upbeat, with Dr. Anthony Fauci telling the AFP on Tuesday that Omicron infections are “almost certainly” not more severe than those caused by the previous Delta variant.

“Economic growth is going to be strong. Certainly the Omicron variant could possibly push some of that out, but it won’t eliminate it given the underlying fundamentals,” Brent Schutte, chief investment strategist for Northwestern Mutual, told Yahoo Finance Live. “And the Federal Reserve certainly will focus a bit more on tapering — that kind of spooked the market — but ask yourself: What impact is that going to have on growth? The answer to us is not much. You are still going to have a strong U.S. economy next year on the back of reopening, on the back of all the cash that is still available on the consumer balance sheet.”

Other strategists echoed these sentiments.

“We do think that there is fundamental support there for markets to continue to move higher here,” Emily Roland, co-chief investment strategist at John Hancock investment management, told Yahoo Finance Live on Tuesday. “Obviously we had a couple of things spook us over the last week or so, the emergence of the Omicron variant as well as this pivot from the Fed, potentially seeing them accelerating their tapering of asset purchases here. But the bottom line is that the economy is strong.”

“So until it looks like we’re inching closer to a recession here, which we’re nowhere near at this point, it’s hard for us to get too defensive,” she added. “We continue to embrace equities, we like the U.S. the most, that’s where we’re seeing the best relative economic growth, that’s where we’re seeing the best relative earnings growth. And again, the other element here is that there is a ton of cash on the sidelines that’s looking to get put to work.”

—

4:09 p.m. ET: Stocks eke out third straight day of gains after Pfizer says third dose of vaccine neutralizes Omicron

Here were the main moves in markets as of 4:09 p.m. ET:

S&P 500 (^GSPC): +14.46 (+0.31{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,701.21
Dow (^DJI): +35.32 (+0.10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,754.75
Nasdaq (^IXIC): +100.07 (+0.64{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,786.99
Crude (CL=F): +$0.54 (+0.75{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $72.59 a barrel
Gold (GC=F): +$2.10 (+0.12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,786.80 per ounce
10-year Treasury (^TNX): +2.9 bps to yield 1.5090{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

11:11 a.m. ET: Crude oil inventories dropped less than expectedT last week: EIA

The Energy Information Administration said in its weekly report Wednesday that U.S. crude oil inventories dropped by 241,000 barrels last week.

The sum was much less pronounced than the drop of 1.521 million barrels consensus economists were expecting, based on Bloomberg data. The weekly report also spotlighted that crude imports fell by 105,000 barrels per day, while crude production increased by 100,000 barrels per day.

U.S. West Texas intermediate crude oil futures ticked down by about 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} Wednesday morning, to give back some gains after jumping by 3.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on. Tuesday and 4.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on Monday. Brent crude oil futures, the international benchmark, edged lower by about the same margin to hover above $75 per barrel.

—

10:00 a.m. ET: Job openings climb to near-record high in October

Job openings in the U.S. jumped by a greater-than-expected margin in October, underscoring the still-widespread mismatches in labor supply and demand as shortages abound.

The Labor Department said Wednesday that U.S. job openings totaled 11.033 million in October, coming in above consensus economists’ expectations for 10.469 million, according to Bloomberg data. Job openings in September were upwardly revised to 10.602 million, from the 10.438 million previously reported.

The quits rate came down only slightly in October to reach 2.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, versus September’s all-time high of 3.0{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

—

9:30 a.m. ET: Stocks open higher amid Pfizer vaccine news

Stocks traded mixed and came off the highs of the overnight session as investors continued to digest new updates on Pfizer’s COVID-19 vaccine and its efficacy against the Omicron variant.

The Dow traded higher by more than 100 points, or 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The S&P 500 was little changed, while the Nasdaq dropped 0.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

Small-cap stocks continued to jump, with the Russell 2000 index up another more than 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

—

7:32 a.m. ET Wednesday: Stocks head for third straight session of gains

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

S&P 500 futures (ES=F): +13.5 points (+0.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,698.50
Dow futures (YM=F): +114.00 points (+0.32{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,827.00
Nasdaq futures (NQ=F): +39.75 points (+0.24{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,357.75
Crude (CL=F): -$0.01 (-0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $72.04 a barrel
Gold (GC=F): +$1.00 (+0.06{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,785.70 per ounce
10-year Treasury (^TNX): -0.8 bps to yield 1.472{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

6:06 p.m. ET Tuesday: Stock futures open higher after rally

Here were the main moves in markets in late trading on Tuesday:

S&P 500 futures (ES=F): +3 points (+0.06{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,688.00
Dow futures (YM=F): +9 points (+0.03{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,722.00
Nasdaq futures (NQ=F): +21.5 points (+0.13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,339.5

NEW YORK, NEW YORK - DECEMBER 02: Traders work on the floor of the New York Stock Exchange (NYSE) on December 02, 2021 in New York City. The Dow rose over 500 points today after falling yesterday due to fears of the omicron strain of the Covid-19 virus. (Photo by Spencer Platt/Getty Images) — NEW YORK, NEW YORK – DECEMBER 02: Traders work on the floor of the New York Stock Exchange (NYSE) on December 02, 2021 in New York City. The Dow rose over 500 points today after falling yesterday due to fears of the omicron strain of the Covid-19 virus. (Photo by Spencer Platt/Getty Images)

—

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

December 6, 2021

Stocks rise as traders digest mixed November jobs report

Stocks sank on Friday to end the week lower, as investors digested updates on the Omicron variant alongside the Labor Department’s November jobs report, which came in mixed compared to Wall Street’s elevated expectations.

The S&P 500 posted a weekly loss of 1.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} since last Friday, sliding in volatile trading after the discovery of the Omicron variant. The Nasdaq underperformed with a weekly loss of 2.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Treasury yields also dipped as investors bought safe haven assets, and the yield on the benchmark 10-year note slid below 1.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

Developments around the Omicron variant remained a focal point. So far at least five U.S. states have reported at least one case of the variant. The variant has also been found in more than three dozen countries globally, CNBC reported, citing the World Health Organization. The report also said the WHO has so far seen “a suggestion that there is increased transmissibility” of the Omicron variant, while noting it is still too soon to determine whether it is more or less transmissible than the Delta variant, or whether it causes more severe disease.

The market moves Friday also came following the release of the Labor Department’s November jobs report, which showed a disappointing rate of hiring for the month even as the unemployment rate fell to a fresh pandemic-era low. Payroll gains came in at 210,000, or less than half the 550,000 consensus economists were expecting. The jobless rate fell to 4.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, dipping more than anticipated from October’s 4.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

The moves on Friday came in contrast to a rally on Thursday, when market participants initially shrugged off the discovery of multiple cases in the U.S.

“The markets … have been pricing in, really, a worst-case scenario,” Jim Smiegiel, SEI chief investment officer, told Yahoo Finance Live.

“I think the market is now switching gears a little bit and perhaps lessening the intensity on the potential for negative outcomes,” he added. “The big issue still remains more about the world government’s reaction to the variant and what that means from a lockdown perspective. And that’s what the market is still kind of struggling with at this stage.”

Others have struck an even more optimistic tone, suggesting the economic impact of the Omicron variant will ultimately prove less drastic than initially feared.

“If you look back at Delta, there really wasn’t a meaningful impact in terms of actual consumption … maybe we saw a little bit of a shift away from services in the early stages of the reopen back towards goods, but overall consumption held up just fine,” Garrett Melson, Natixis Investment Managers Solutions portfolio strategist, told Yahoo Finance Live on Thursday.

“And on the capex front, we still see signs that companies are saying they’re going to invest in their businesses and they’re doing just that,” Melson added. “Lockdowns are certainly not happening here in the U.S. There’s no appetite from the government and certainly no appetite from consumers.”

—

4:05 p.m. ET: Stocks end session, week sharply lower

Here’s where U.S. equities ended Friday’s session:

S&P 500 (^GSPC): -38.67 (-0.84{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,538.43
Dow (^DJI): -59.71 (-0.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,580.08
Nasdaq (^IXIC): -295.85 (-1.92{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,085.47

—

3:36 p.m. ET: What economists are saying about the November jobs report

While the headline payrolls number in the November jobs report came in well short of estimates, many economists highlighted the better-than-expected improvements in other metrics, including the unemployment rate and labor force participation rate.

Here’s what a number of economists had to say about the report, based on notes and emails sent to Yahoo Finance:

“While November displayed 210,000 jobs gained at the headline level, which some may suggest is a disappointment, when we look at the details of the report, we see some significant strengths. Indeed, the six-month average for non-seasonally adjusted private payroll gains is more than 700,000 jobs/month, an impressive number by any standard … The unemployment rate declined impressively from 4.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in October to 4.24{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in November, even as the labor force grew strongly, an indication of labor market strength.” – Rick Rieder BlackRock’s chief investment officer of global fixed income
“Arguably the biggest surprise in the November employment report was the unexpected 0.4 [percentage point] decline in the unemployment rate to 4.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} … slowing job gains and sturdy wages are a signal of a tight labor market.” – Joe LaVorgna, Natixis CIB managing director and chief economist of the Americas
“Today’s jobs report presents a mixed picture of the labor market recovery as storm clouds gather from a rebounding Delta variant and new variant looms. The divergence between the establishment and household surveys is unusual, but is an important reminder of how difficult it is to measure the labor market in a pandemic.” – Daniel Zhao, Glassdoor senior economist
“Overall, while this report is disappointing, it does not change our view that faster tapering will be announced in December, unless the scientific news on the Omicron variant over the next couple weeks is disastrous. The Fed is focused on the inflation overshoot, which will get much worse before it gets better, and officials have made it very clear that they want to take out insurance against the risk that the latest spike does not become embedded.” – Ian Shepherdson, chief economist for Pantheon Macroeconomics

—

10:47 a.m. ET: Stocks trade lower as tech lags

The three major stock indexes traded in the red after opening in positive territory, with investors continuing to mull the latest headlines on the Omicron variant and the November jobs report.

The information technology and consumer discretionary sectors underperformed in the S&P 500, while consumer staples was the only sector in the green.

Salesforce.com, Boeing and Microsoft lagged in the Dow, contributing to the more than 200-point drop in the index. The Nasdaq dropped more than 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} amid the drawdown in heavily weighted technology names.

—

10:15 a.m. ET: Docusign shares post biggest-ever drop after 3Q billings, guidance miss

Shares of software company Docusign (DOCU) slid on Friday after posting disappointing third-quarter billings results and current-quarter guidance, suggesting business activity was returning to more “normalized” levels after a pandemic-induced surge.

Shares were down more than 40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} as of morning trading. Late Thursday, the e-signature company reported third-quarter billings growth of 28{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, marking a major slowdown from the previous 61{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} growth seen in the second quarter. Billings are a closely watched metric for software companies with recurring revenue subscription models.

“After six quarters of accelerated growth, we saw customers return to more normalized buying patters, resulting in a 28{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} year-over-year billings growth,” Dan Springer, CEO of Docusign, said in the company’s earning’s statement.

And for the current quarter, Docusign sees revenue coming in between $557 million and $563 million, missing Wall Street’s estimates for $574.2 million.

—

9:31 a.m. ET: Stocks open higher after mixed jobs report

Here’s where markets were trading shortly after the opening bell:

S&P 500 (^GSPC): +23.48 (+0.51{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,600.58
Dow (^DJI): +125.06 (+0.36{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,746.85
Nasdaq (^IXIC): +89.04 (+0.58{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,466.81
Crude (CL=F): +$2.39 (+3.59{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $68.89 a barrel
Gold (GC=F): +$8.90 (+0.50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,771.60 per ounce
10-year Treasury (^TNX): +1.1 bps to yield 1.46{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

9:20 a.m. ET: November jobs report comes in mixed, with payrolls disappointing while unemployment rate falls to pandemic-era low

The November jobs report offered a mixed bag for investors to digest, as non-farm payroll growth came in sharply short of consensus expectations while the unemployment and labor force participation rates topped estimates.

Non-farm payrolls grew by 210,000 in November following a revised 546,000 in October. This was well short of the 550,000 jobs expected. The unemployment rate improved to 4.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from October’s 4.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, and reached it lowest level since February 2020.

The labor force participation rate also ticked up slightly more than anticipated in November to reach 61.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, versus the 61.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} consensus economists were expecting and the 61.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} posted in October. The labor force participation rate had been 63.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in February 2020 before the pandemic meaningfully impacted the job market.

Still, as of November, the civilian labor force was still down by about 2.4 million participants, compared to February 2020.

—

7:23 a.m. ET Friday: Stock futures drift sideways ahead of jobs report

Here were the main moves in markets as the overnight session kicked off:

S&P 500 futures (ES=F): +0.25 points (+0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,576.00
Dow futures (YM=F): +11 points (+0.03{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,633.00
Nasdaq futures (NQ=F): -1 points (-0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,987.50
Crude (CL=F): +$1.89 (+2.84{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $68.39 a barrel
Gold (GC=F): +$10.80 (+0.61{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,773.50 per ounce
10-year Treasury (^TNX): -1.8 bps to yield 1.432{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

6:31 p.m. ET Thursday: Stock futures jump ahead of jobs report

Here were the main moves in markets during the overnight session:

S&P 500 futures (ES=F): +11.5 points (+0.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,587.25
Dow futures (YM=F): +94 points (+0.27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,716.00
Nasdaq futures (NQ=F): +34.50 points (+0.22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,023.00

NEW YORK, NEW YORK - AUGUST 10: People walk by the Wall Street Bull near the New York Stock Exchange (NYSE) on August 10, 2021 in New York City. Markets were up in morning trading as investors look to a rare bipartisan effort in the Senate to pass a massive infrastructure bill that, if passed, will infuse billions into the American economy. (Photo by Spencer Platt/Getty Images) — NEW YORK, NEW YORK – AUGUST 10: People walk by the Wall Street Bull near the New York Stock Exchange (NYSE) on August 10, 2021 in New York City. Markets were up in morning trading as investors look to a rare bipartisan effort in the Senate to pass a massive infrastructure bill that, if passed, will infuse billions into the American economy. (Photo by Spencer Platt/Getty Images)

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

November 25, 2021

Asian Stocks Mixed After Late Slump on Wall Street | Business News

By ELAINE KURTENBACH, AP Business Writer

Asian shares were mixed Tuesday after a late drop left major Wall Street indexes mostly lower.

Tokyo was closed Tuesday for a holiday. Hong Kong and Seoul declined while Shanghai advanced.

Market players appeared to be relieved to learn that President Joe Biden will nominate Jerome Powell for a second four-year term at the helm of the Federal Reserve, a vote of confidence in Powell’s handling of central bank policies during the brutal disruptions caused by the coronavirus pandemic.

Hong Kong’s Hang Seng fell 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 24,705.41 and the Kospi in Seoul lost 0.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 3,001.07. In Sydney, the S&P/ASX 200 climbed 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 7,397.80 and the Shanghai Composite index added 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 3,592.07.

Political Cartoons

Investors are closely watching the Fed to see whether pressure from rising inflation prompts it to speed up its plans for trimming bond purchases and raising its benchmark interest rate.

“Powell getting the nod is a sign that Biden is staying the course on monetary policy and the Fed is steadily moving toward normalizing policy,” said Brad McMillan, chief investment officer for Commonwealth Financial Network. “On the whole, the Fed is going to continue to be a force for monetary stability.”

Still, a late-afternoon burst of selling derailed the market from another all-time high on Monday.

The S&P 500 fell 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 4,682.94. The Dow gained less than 0.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 35,619.25. The tech-heavy Nasdaq gave up 1.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 15,854.76.

Small company stocks also fell. The Russell 2000 index dropped or 0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 2,331.35.

Bond yields moved solidly higher on heavy selling. The yield on the 10-year Treasury rose to 1.63{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from 1.54{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} late Friday.

Higher Treasury yields make the more expensive areas of the market, like technology stocks, less attractive, which may explain why there was more selling in stocks toward the end of the day as the bond market shifted.

With rising inflation hanging over the recovery from the pandemic, the Federal Reserve is starting to trim bond purchases that have helped keep interest rates low to support the economy and markets.

More than 55{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of the stocks in the S&P 500 rose Monday, but losses by big technology and communication companies outweighed gains elsewhere in the benchmark index. Chipmaker Nvidia slid 3.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and Netflix fell 2.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

Energy companies got a bump as U.S. crude oil prices rose 0.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

On Tuesday, U.S. benchmark crude oil lost 50 cents to $76.25 per barrel in electronic trading on the New York Mercantile Exchange.

Brent crude, the standard for international pricing, gave up 35 cents to $79.35 per barrel.

The U.S. dollar rose to 115.08 Japanese yen from 114.88 yen late Monday. The euro edged up to $1.1239 from $1.1237.

Markets in the U.S. will be closed on Thursday for the Thanksgiving holiday. They will also close early on Friday.

AP Business Writers Damian J. Troise and Alex Veiga contributed.