Tag: Nasdaq

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Here’s where stocks were trading Monday morning:

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

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

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

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

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

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

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

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

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

Read the latest financial and business news from Yahoo Finance

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S&P 500, Nasdaq drop for second straight day after Fed officials discuss half-point rate hike

S&P 500, Nasdaq drop for second straight day after Fed officials discuss half-point rate hike

U.S. stocks fell Thursday as investors continued to monitor a steady stream of corporate earnings results against a backdrop of elevated inflation and further Fed policy tightening.

The S&P 500 dropped and erased earlier gains. The Dow Jones Industrial Average also turned lower. The Nasdaq fell more than 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and extended Wednesday’s losses, when the tech-heavy index was weighed down by a slide in shares of Netflix. Meanwhile, Tesla (TSLA) shares rose after the electric vehicle-maker handily exceeded expectations in its fiscal first-quarter results.

Stocks dropped and Treasury yields climbed Thursday afternoon after Federal Reserve Chair Jerome Powell suggested he saw the case for front-loading interest rate hikes with 50 basis-point increases in order to quickly address persistent inflationary pressures. San Francisco Federal Reserve President Mary Daly also suggested in an interview with Yahoo Finance that she would back a larger-than-typical 50 basis point interest rate hike following the Fed’s May meeting given current price pressures.

Plus, the so far mixed quarterly earnings results this reporting season have stirred up uncertainty over whether corporate profits will be able to bolster equity markets operating in an already challenging economic environment. With inflation running at its fastest rate in 40 years and weighing on economic activity, and the the U.S. Federal Reserve on track to ramp up its tightening regime despite decelerating growth, many pundits have warned of further choppiness in risk assets.

“The big question is whether the earnings can really sustain this kind of a macro backdrop of slower growth and [tighter] Fed policy,” Deepak Puri, Deutsche Bank wealth management chief investment officer, told Yahoo Finance Live on Wednesday. “It seems certain companies can — historically that’s been the case. What’s different this time is really the trifecta, which is higher costs of capital, quantitative tightening, plus a lack of … a big fiscal stimulus.”

A similar market environment was seen in 2017 and 2018, when the Federal Reserve last raised interest rates before this year, Puri added. However, at that time, a reduction in the corporate tax rate under the prior administration had helped “cushion some of the burden of a higher cost of capital,” Puri said.

“This time around, I’m not really seeing much fiscal spending coming our way,” Puri said. “So it could be one of those times where the market might be a little bit more volatile than what participants expect.”

Other pundits also suggested tepid profit growth this year may be insufficient to propel the market forward, especially in the case of a slowdown in tech company results, given that many of these names are some of the most heavily weighted in the major equity indexes.

“Here’s the biggest risk in my opinion to the broader market right now: The broader market is concentrated in just a handful of names. What happens if their earnings or guidance for the second quarter is very dismal, or if they have a second-quarter earnings report … that really surprises to the downside? That’s when you’ll see that downdraft in the S&P, in my opinion,” Eddie Ghabour, co-founder and managing partner at Key Advisors Group, told Yahoo Finance Live on Wednesday.

“No one is bulletproof in this environment,” he added. “And I think being cautious here after the massive run up we’ve seen in the last several years in risk assets is just a prudent thing to do. Because there will be some amazing buying opportunities that will come when this bubble bursts.”

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4:05 p.m. ET: S&P 500, Nasdaq drop to post back-to-back day of declines after Fed officials discuss half-point rate hikes

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

  • S&P 500 (^GSPC): -65.79 (-1.48{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,393.66

  • Dow (^DJI): -368.03 (-1.05{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,792.76

  • Nasdaq (^IXIC): -278.41 (-2.07{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,174.65

  • Crude (CL=F): +$1.48 (+1.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $103.67 a barrel

  • Gold (GC=F): -$2.10 (-0.11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,953.50 per ounce

  • 10-year Treasury (^TNX): +7.7 bps to yield 2.9170{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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2:31 p.m. ET: Powell says it’s ‘absolutely essential to restore price stability,’ suggests 50-basis point rate hike is ‘on the table’

Federal Reserve Chair Jerome Powell reiterated Thursday that the central bank’s primary goal at this juncture is to bring down inflation while trying to avoid tipping the economy into a recession in the process.

“Our goal is to use our tools to get demand and supply back in synch so that inflation moves down, and do so without a slowdown that amounts to a recession,” Powell said during an International Monetary Fund panel discussion on Thursday. “It’s absolutely essential to restore price stability. Without price stability, really economies don’t work without price stability. We need that to have a strong labor market over an extended period of time. We need it for financial stability. So we must do that.”

One of the main tools the Federal Reserve has to rein in inflation is through interest rate hikes, with higher rates slowing demand and ultimately exerting downward pressure on elevated prices. And with this in mind, Powell suggested a 50 basis point rate hike at Fed’s forthcoming meeting could take place to achieve the central bank’s price stability target.

“We really are committed to using our tools to get 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} inflation back,” he added. “It is appropriate in my view to be moving a little more quickly. And I also think there is something in the idea of front-end loading … that points to the direction of 50 basis points being on the table.”

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12:51 p.m. ET: San Francisco Fed’s Daly says interest rates should move ‘expeditiously’ toward neutral

San Francisco Federal Reserve President Mary Daly said Thursday that interest rates should move higher swiftly this year in the face of elevated inflation.

“I like to think of it as expeditiously marching towards neutral. It’s clear the economy doesn’t need the accommodation we’re providing,” Daly told Yahoo Finance’s Brian Cheung in an exclusive interview Thursday.

Daly, who is not a voting member in this year’s Federal Open Market Committee but still participants in monetary policy discussions with the committee, said she supports raising the benchmark federal funds rate by 50 basis points at the central bank’s next policy-setting meeting in early May. Such a move would mark the first hike of more than 25 basis points from the Fed since 2000.

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10:21 a.m. ET: Elon Musk is mulling a tender offer to buy Twitter, has received $46.5 billion in commitment letters

Tesla CEO Elon Musk is considering acquiring shares of Twitter (TWTR) via tender offer at a price of $54.20 per share, according to a filing on Thursday.

Musk has so far received approximately $46.5 billion in commitment letters for financing, the filing said. With a tender offer, Musk would purchase shares directly from current shareholders in order to ultimately acquire Twitter.

The filing comes after Musk last week issued an offer to purchase Twitter for $54.20 per share, equivalent to more than $40 billion. However, Twitter last week adopted a “poison pill,” or limited duration shareholder rights plans, to try and ward off a takeover and prevent Musk from amassing a larger stake in the firm. Musk disclosed he had taken a more than 9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} stake in Twitter earlier this month.

Twitter shares rose 0.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} intraday Thursday morning.

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9:30 a.m. ET: Stocks open higher, tech shares stage a recovery after Netflix-led slide

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

  • S&P 500 (^GSPC): +46.97 (+1.05{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,506.42

  • Dow (^DJI): +289.18 (+0.82{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,449.97

  • Nasdaq (^IXIC): +209.64 (+1.56{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,666.46

  • Crude (CL=F): +$1.80 (+1.76{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $103.99

  • Gold (GC=F): -$6.20 (-0.32{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,949.40 per ounce

  • 10-year Treasury (^TNX): +4.1 bps to yield 2.877{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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8:35 a.m ET: Weekly unemployment claims come in at 184,000, holding near multi-decade lows

Weekly unemployment claims held near their lowest levels since the 1960s, with a strong labor market and improving levels of unemployment remaining a bright spot in the U.S. economy.

First-time jobless claims totaled 184,000 during the week ended April 16, according to the Labor Department’s latest weekly report. Claims had totaled 186,000 a week earlier.

Though initial filings edged up slightly in the latest weekly data, the sum remained near 50-year lows. New claims had reached their lowest level since 1968 at 166,000 just last month.

Continuing claims, which tally the number of Americans collecting benefits for multiple weeks, have also declined sharply to reach multi-decade lows. These came in below 1.5 million for a back-to-back week to reach their lowest level since 1970.

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7:39 a.m. ET: Stock futures head for a higher open

Here’s where stocks were trading Thursday morning:

  • S&P 500 futures (ES=F): +38 (+0.85{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,493.50

  • Dow futures (YM=F): +233 (+0.66{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,312.00

  • Nasdaq futures (NQ=F): +170.25 (+1.22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,175.00

  • Crude (CL=F): +$0.98 (+0.96{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $103.17

  • Gold (GC=F): -$12.40 (-0.63{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,943.20 per ounce

  • 10-year Treasury (^TNX): +3.3 bps to yield 2.869{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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6:12 p.m. ET: Stock futures trade little changed

Here’s where stocks were trading Tuesday evening:

  • S&P 500 futures (ES=F): +14.25 (+0.32{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,469.75

  • Dow futures (YM=F): +74.00 (+0.21{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,153

  • Nasdaq futures (NQ=F): +70.25 (+0.50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,075

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

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

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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

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Stocks fall, Nasdaq drops as Netflix slides after subscribers miss

Stocks fall, Nasdaq drops as Netflix slides after subscribers miss

Stocks ended a volatile week lower, with investors rotating further away from growth and technology stocks that had outperformed early on during the pandemic.

The Nasdaq plummeted nearly 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, clocking in its worst week since March 2020, while the S&P 500 and Dow accelerated losses. A day earlier, the Nasdaq Composite dropped more than 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, adding to losses after sinking into a correction earlier this week. The Nasdaq has shed 12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for the year-to-date. 

Shares of Netflix (NFLX) sank more than 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after the company posted a first-quarter subscriber growth outlook that fell far short of expectations, with the streaming giant projecting 2.5 million new users for the first quarter of 2022 versus the 6.3 million anticipated, according to Bloomberg data. Shares of Disney (DIS) and Roku (ROKU) fell in sympathy. Meanwhile, Peloton (PTON) — which had been another darling of the so-called “stay-at-home” trade during the pandemic — recovered some losses after falling to a near two-year low on Thursday, after CNBC reported the company was cutting production of its fitness products due to flagging demand. 

“It is these infamous stay-at-home plays … that had been bid up to valuations that get to the point where they’re priced for perfection,” Mark Luschini, chief investment strategist at Janney Montgomery Scott, told Yahoo Finance Live on Thursday. “Anything that is released about the companies’ investment results or prospects that doesn’t meet or exceed very elevated expectations leads to gigantic disappointment in the form of a share price decline.” 

“This is indicative of companies that, again, have valuations that have been bid up by investors who, on disappointment, decide to sell first and ask questions later, and therefore leave huge carnage in their wake as valuations compress to better reflect prospects under a more normal economic climate,” Luschini added.  

The drop in many closely watched, highly valued technology stocks — and the broader stock indexes — also came alongside ongoing investors jitters about a potential near-term move on interest rates from the Federal Reserve. The Fed’s next policy-setting meeting is set to take place next week, with market participants largely pricing in a first interest-rate hike out from the central bank after the Fed’s March meeting. These expectations for higher rates and less liquidity from the Fed this year have also been a key driver of recent equity price action, many strategists noted. 

“I think there is a rotation going on towards those areas of the market that have been neglected for a long time — not just months, but years. Areas like financials and energy. Even health care, which is an area that had done a bit better during the pandemic, but really isn’t seeing any kind of multiples like it did in the past,” Jeffrey Kleintop, Charles Schwab chief global investment strategist, told Yahoo Finance Live on Thursday. 

“I think those areas of the market have more durability here as we look at an environment where earnings growth is slowing so valuations matter more,” he added. “And many of these companies can look to generate earnings growth in this environment of rising interest rates and commodity prices, whereas tech is a bit more challenged as goods demand begins to slow.”

—

4:02 p.m. ET: Nasdaq notches worst week since 2020

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

  • S&P 500 (^GSPC): -85.00 (-1.90{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,397.73

  • Dow (^DJI): -449.89 (-1.30{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,265.50

  • Nasdaq (^IXIC): -385.10 (-2.72{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,768.92

  • Crude (CL=F): -$0.84 (-0.98{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $84.71 a barrel

  • Gold (GC=F): -$12.10 (-0.66{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,830.50 per ounce

  • 10-year Treasury (^TNX): -8.6 bps to yield 1.7470{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

1:04 p.m. ET: ‘I certainly think technology and growth is going to be a sector you want to be in’ 

As the Nasdaq sinks further into a correction and individual technology stocks come under considerable pressure, some analysts see the pick-up of tech earnings season next week as the start of a potential reprieve for at least some of these growth names. 

“The re-thinking of valuations really just follows in the wake of rising interest rates. So we averaged 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on the yield on the U.S. 10-year for all of last year, and this year we likely average somewhere between 1.75{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a},” National Chief Market Strategist Art Hogan, told Yahoo Finance Live on Friday. “So that price and value calculation is obviously putting pressure on multiples across the technology complex.” 

“At some point in time we’ll look at this and say we’re probably overdone and we’ve taken too much multiple compression,” he added. “And what likely will be the signal that that’s the case will be when we get into earnings season in earnest next week … and see where the winners and losers really sit.” 

“I certainly think technology and growth is going to be a sector you want to be in [for] 2022,” Hogan said. “But I think you want to be in it in companies that measure themselves in price to earnings.”

—

10:40 a.m. ET: Leading Economic Index posts solid jump in December: Conference Board

An index tracking future domestic economic conditions accelerated in December, pointing to still-solid growth trends in the U.S. even amid ongoing concerns over the pandemic, inflation, and a more hawkish tilt to monetary policy. 

The Conference Board’s closely watched Leading Economic Index (LEI) rose 0.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in December, matching consensus estimates, according to Bloomberg data. This picked up from November’s 0.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} clip, which was downwardly revised from the 1.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} gain previously reported. 

“The U.S. LEI ended 2021 on a rising trajectory, suggesting the economy will continue to expand well into the spring,” Ataman Ozyildirim, senior director of economic research at The Conference Board, said in a press statement. 

“For the first quarter, headwinds from the Omicron variant, labor shortages, and inflationary pressures—as well as the Federal Reserve’s expected interest rate hikes—may moderate economic growth,” Ozyildirim added. “The Conference Board forecasts GDP growth for Q1 2022 to slow to a relatively healthy 2.2 percent (annualized). Still, for all of 2022, we forecast the US economy will expand by a robust 3.5 percent—well above the pre-pandemic trend growth.”

—

9:31 a.m. ET: Stocks open lower 

Here’s where markets were trading Friday morning: 

  • S&P 500 (^GSPC): -12.92 (-0.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,470.23

  • Dow (^DJI): -69.52 (-0.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,645.87

  • Nasdaq (^IXIC): -57.82 (-0.41{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,095.93

  • Crude (CL=F): -$0.60 (-0.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $84.95 a barrel

  • Gold (GC=F): +$0.10 (+0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,842.70 per ounce

  • 10-year Treasury (^TNX): -7.8 bps to yield 1.756{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

9:27 a.m. ET: Bitcoin extends declines, falling to around $38,000

Cryptocurrency prices tracked the volatility across risk assets this week. 

Bitcoin, the largest cryptocurrency by market capitalization, saw prices sink by 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to below $38,000 at Friday’s lows, according to Yahoo Finance data. That marked the lowest level since early August.  

Other major cryptocurrency prices also sank. Ethereum fell by more than 12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to about $2,800 Friday morning in New York. Solana prices sank 15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to below $120. 

—

7:31 a.m. ET Friday: Stock futures hold lower, Netflix weighs on Nasdaq 

Here’s where markets were trading Friday morning:

  • S&P 500 futures (ES=F): -19.75 points (-0.44{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,455.00

  • Dow futures (YM=F): -68 points (-0.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,548.00

  • Nasdaq futures (NQ=F): -115.5 points (-0.78{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,725.50

  • Crude (CL=F): -$1.38 (-1.61{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $84.17 a barrel

  • Gold (GC=F): -$8.60 (-0.47{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,834.00 per ounce

  • 10-year Treasury (^TNX): -5.3 bps to yield 1.781{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

6:01 p.m. ET Thursday: Stock futures open lower

Here’s where markets were trading Thursday evening: 

  • S&P 500 futures (ES=F): -17 points (-0.38{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,457.75

  • Dow futures (YM=F):—41 points (-0.12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,575.00

  • Nasdaq futures (NQ=F): -128.25 points (-0.86{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,712.75

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

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S&P 500, Nasdaq rise after weekly jobless claims reach 52-year low, PCE inflation jumps

S&P 500, Nasdaq rise after weekly jobless claims reach 52-year low, PCE inflation jumps

The S&P 500 and Nasdaq gained on Wednesday as technology stocks recovered some recent losses, with investors digesting a deluge of economic data before a holiday market closure. 

Investors considered new Labor Department data showing weekly initial jobless claims fell far more than expected to their lowest level since November 1969, underscoring current tight labor market conditions. However, a separate print showed personal consumption expenditures (PCE) accelerated to rise by 5.0{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in October, or the fastest rate since 1990, to add to recent signs of elevated price pressures. 

The 10-year Treasury yield rose to near 1.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} amid these further signs of a firming economic recovery and persistently hot inflation data. 

Rising interest rates have coincided with a selloff in tech and growth stocks this week, with the Nasdaq dropping 0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on Tuesday after Monday’s more than 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} decline. 

“Initially, the markets were happy with the FOMC decision [for Fed Chair Jerome Powell’s renomination] in the sense that it was sort of a continuity play to some degree. But then rates started to rise, and a lot of folks read rising rates as negative for big-cap tech,” Stuart Kaiser, UBS head of equity derivatives research, told Yahoo Finance Live. “So I think the tradeoff we’re going to have here is that, tech has been market leadership — it’s obviously a strong earnings growth and free cash flow engine for U.S. equities — but if you believe it’s going to come under pressure from higher yields, then you end up with kind of a difficult Catch-22.”

According to other analysts, the market action this week — with a renewed rotation away from technology and growth stocks in the face of rising rates — could presage the investing environment for next year. 

“[Tuesday] might be an example of what we see more of next year as the Fed moves into a mode of withdrawing liquidity from the markets and ending these pandemic-era policies, perhaps with rate hikes at the end of the year,” Jeffrey Kleintop, Charles Schwab chief global investment strategist, told Yahoo Finance Live. “And that means higher-valuation stocks, well, they tend to not do as well in environments of rising interest rates and tighter financial conditions.” 

“So you may want to look to be in those sectors that are maybe trading closer to their average valuations, looking to leadership like financials, energy,” he added. “The only caveat to that is when we see these upticks in COVID cases globally, it tends to favor those lockdown defensives like technology.” 

—

4:09 p.m. ET: Tech stocks recover, S&P 500 and Nasdaq end higher after jobless claims reach 52-year low, PCE inflation jumps

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

  • S&P 500 (^GSPC): +10.76 (+0.23{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,701.46

  • Dow (^DJI): -9.42 (-0.03{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,804.38

  • Nasdaq (^IXIC): +70.09 (+0.44{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,845.23

  • Crude (CL=F): -$0.25 (-0.32{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $78.25 a barrel

  • Gold (GC=F): +$4.20 (+0.24{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,788.00 per ounce

  • 10-year Treasury (^TNX): -2.2 bps to yield 1.6450{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

3:50 p.m. ET: FOMC minutes suggest central bank focused on ‘flexibility’ for policy path forward

The Federal Open Market Committee’s November meeting minutes released Wednesday afternoon suggested monetary policymakers were committed to remaining flexible in their policy path forward and would adjust their asset-purchase tapering as needed as new economic data rolled in. The central bank had announced in early November that it was going to begin reducing its asset purchases at a rate of $15 billion per month in each of November and December, and then reassess the size of the reductions going forward. 

“The Committee was prepared to adjust the pace of purchases if warranted by changes in the economic outlook and agreed that the post-meeting statement should say so,” the minutes said. “Members agreed that the addition of this language would acknowledge the importance of maintaining flexibility to adjust the stance of policy as appropriate in response to changes in the Committee’s outlook for the labor market and inflation.”

The November FOMC meeting did not come with an updated “dot plot” of individual members’ projections on interest rates and other economic data. However, the minutes Wednesday noted that the members’ “near-term outlook for inflation was revised up, as consumer food and energy prices had risen faster than expected and production bottlenecks and recent wage gains were seen as putting somewhat greater upward pressure on prices than had been anticipated.” 

—

12:02 p.m. ET: New home sales unexpectedly rose for a back-to-back month in October 

New home sales rose by 0.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in October to extend gain after a 7.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} increase in September, Commerce Department data showed on Wednesday. Consensus economists were looking for an unchanged reading last month, according to Bloomberg consensus data. 

“The trend is picking up after a steep drop in the first half of the year, and the recent rising trend in mortgage applications points to clear increases over the next few months, with sales hitting 850K or so by January,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, wrote in a note Wednesday. “At the same time, inventory continues to rise rapidly, in contrast to the existing homes market. Supply in the three months October stood at 6.3 months, a bit higher than before COVID. As a result the surge in prices now looks very overcooked, and we expect a clear slowing in the first half of next year.”

—

10:15 a.m. ET: Personal spending and income each top estimates in October despite 

Personal spending increased in October even amid elevated prices, pointing to continued strength in the consumer despite lingering inflation. 

Personal spending, which comprises about two-thirds of U.S. economic activity, rose by 1.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in October compared to September, the Bureau of Economic Analysis said Wednesday. This was faster than the 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rate posted for September and the 1.0{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} monthly increase expected, according to Bloomberg data. Real personal spending also accelerated during the month and topped estimates, rising by 0.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from September’s 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} increase. 

Personal income, meanwhile, rebounded after dropping last month, rising by 0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} versus the 0.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} increase anticipated. Income had fallen by 1.0{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} month-on-month in September, in part coming after federal enhanced unemployment benefits were phased out at the national level after Labor Day. 

—

10:10 a.m. ET: Personal consumption expenditures rose at fastest pace since 1990 

A new print on inflation rose at its fastest rate in more than three decades in October, adding to a bevy of data pointing to persistent inflationary pressures. 

Personal consumption expenditures rose by 5.0{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in October over last year, accelerating from September’s 4.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise. The latest monthly print marked the fastest annual growth rate since 1990. 

Excluding volatile food and energy prices, the core PCE deflator was up 4.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in October, also accelerating from September’s revised 3.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} increase. This was the fastest annual rise in the core PCE — the Fed’s preferred inflation gauge — since 1991. 

—

9:30 a.m. ET: Stocks open lower 

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

  • S&P 500 (^GSPC): -21.59 (-0.46{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,669.11

  • Dow (^DJI): -209.61 (-0.59{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,604.19

  • Nasdaq (^IXIC): -114.56 (-0.73{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,658.21

  • Crude (CL=F): -$0.23 (-0.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $78.27 a barrel

  • Gold (GC=F): -$1.40 (-0.08{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,782.40 per ounce

  • 10-year Treasury (^TNX): +1.6 bps to yield 1.681{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

8:45 a.m. ET: New jobless claims reach lowest in 52 years, Q3 GDP revised up

Economic data Wednesday morning came in mostly stronger-than-expected, with a new print on the labor market handily topping estimates while the second estimate of U.S. economic activity in the third quarter was revised higher. 

The Labor Department reported Wednesday that new weekly jobless claims came in at 199,000 for the week ended Nov. 20. This was the lowest level since November 1969, and was much better than the 260,000 new claims expected.

Meanwhile, the Bureau of Economic Analysis released its second estimate on third-quarter U.S. gross domestic product. Quarterly GDP was revised up to a 2.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} annualized rate for the three months ended in September, or above the 2.0{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rate previously reported. This still represented a marked slowdown from the prior quarter’s 6.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} annualized rate of growth, however. 

The improvement from the prior estimate came as personal consumption, the biggest component of U.S. economic activity, was revised up to a 1.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} pace, from the 1.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rate previously reported. 

—

7:16 a.m. ET Wednesday: Stock futures drop ahead of economic data

Here were the main moves in markets ahead of the opening bell

  • S&P 500 futures (ES=F): -13.75 points (-0.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,674.75

  • Dow futures (YM=F): -119 points (-0.33{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,647.00

  • Nasdaq futures (NQ=F): -59 points (-0.36{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,253.00

  • Crude (CL=F): +$0.17 (+0.22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $78.67 a barrel

  • Gold (GC=F): +$3.40 (+0.19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,787.20 per ounce

  • 10-year Treasury (^TNX): -0.5 bps to yield 1.66{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

6:16 p.m. ET Tuesday: Stock futures open lower 

Here’s where markets were trading Tuesday evening:

  • S&P 500 futures (ES=F): -4.75 points (-0.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,683.75

  • Dow futures (YM=F): -27 points (-0.08{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,739.00

  • Nasdaq futures (NQ=F): -17.25 points (-0.11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,294.75

NEW YORK, NEW YORK - NOVEMBER 15: A trader works on the floor of the New York Stock Exchange (NYSE) on November 15, 2021 in New York City. Following positive economic news out of China, stocks were up in morning trading on Monday with investors looking at retail sales and earnings results out from major U.S. companies later this week. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – NOVEMBER 15: A trader works on the floor of the New York Stock Exchange (NYSE) on November 15, 2021 in New York City. Following positive economic news out of China, stocks were up in morning trading on Monday with investors looking at retail sales and earnings results out from major U.S. companies later this week. (Photo by Spencer Platt/Getty Images)

—

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

Posted on

Nasdaq drops 0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} while Dow gains 195 points, or 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Nasdaq drops 0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} while Dow gains 195 points, or 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Stocks were mixed on Tuesday with technology stocks under further pressure, as investors further mulled the market implications of Federal Reserve Jerome Powell’s renomination to lead the central bank.

The S&P 500 ended slightly higher. The Nasdaq lagged as investors further turned away from technology and growth stocks. The Dow — which is heavily weighted in cyclical stocks — gained more than 150 points, or 0.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, during afternoon trading as energy and financials shares outperformed. 

U.S. West Texas intermediate crude oil futures (CL=F) recovered losses and rose 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after dropping more than 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} earlier in the morning. The move came after the White House announced it would be releasing a total of 50 million barrels of oil from the Strategic Petroleum Reserve (SPR), in tandem with similar moves from China, Japan, India and South Korea and the U.K., to try and ease rising energy prices with additional supply. In a speech on Tuesday, Biden said the reserve releases “will not solve the problem of high gas prices overnight but will make a difference.”

Shares of Zoom Video Communication (ZM) slid even after the company posted better-than-expected quarterly revenue growth and full-year guidance, with usage of the video conferencing company’s software slowing amid the reopening. Companies including Nordstrom (JWN), The Gap (GPS) and Autodesk (ADSK) are set to report quarterly results on Tuesday.

Federal Reserve Chair Jerome Powell’s renomination to the top leadership position at the central bank captured market attention this week, with many investors reacting favorably to the likelihood that the Fed’s previously telegraphed monetary policy framework would remain in place with Powell’s reappointment. That includes expectations for current asset-purchase tapering to take place through the middle of next year, and for at least one interest rate hike to take place before the end of 2022.

“Continuity at a time of such extraordinary uncertainty is certainly welcome news. We have extraordinary uncertainty because we’re pivoting from the phase of the cycle where the Fed had been shoring up the recovery from the pandemic-induced recession, and … it did avoid a meltdown in financial markets,” Diane Swonk, Grant Thornton chief economist, told Yahoo Finance Live. “But now we’ve got very easy financial market conditions and we’re dealing with inflation. And having to pivot to dealing with inflation and tamp it down without derailing the recovery — that’s a very hard thing to pull off. We’ve not seen the Fed actually chase inflation down since the early 1980s.”

President Joe Biden also nominated Fed Governor Lael Brainard – previously viewed as a potential candidate for the Fed Chair position to replace Powell — as Vice Chair of the Board of Governors for the Fed. With these two nominations in place, market participants have turned their attention to who might fill he three vacant and soon-to-be vacant seats on the Fed Board, which includes the key Vice Chair for Supervision role. Biden said in a press statement Monday morning he expected to announce those appointments “beginning in early December.”

“Political decisions like this are competitions between affinity — you like someone in your own party — and convenience — what can you get the Senate to do for you, and will markets receive it well? You have to view the Powell-Brainard picks as part … of a bigger package,” Vincent Reinhart, Dreyfus-Mellon chief economist and macro strategist, told Yahoo Finance Live. “The White House is going to have three new governors to appoint, and presumably that’s going to tilt more progressive. So bottom-line, six months from now, the group of people that Chair Powell has to wrangle to make decisions is going to be more dovish than it is today.”

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4:07 p.m. ET: Stocks end mixed as tech rout extends: Nasdaq drops 0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} while Dow gains 195 points, or 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Here were the main moves in markets as of 4:07 p.m. ET:

  • S&P 500 (^GSPC): +7.76 (+0.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,690.70

  • Dow (^DJI): +194.55 (+0.55{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,813.80

  • Nasdaq (^IXIC): -79.62 (-0.50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,775.14

  • Crude (CL=F): +$2.01 (+2.62{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $78.76 a barrel

  • Gold (GC=F): -$15.50 (-0.86{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,790.80 per ounce

  • 10-year Treasury (^TNX): +4.2 bps to yield 1.6670{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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1:55 p.m. ET: Ark Innovation Fund on track for worst 5-day drop since March as tech rout deepens

Cathie Wood’s Ark Innovation Fund (ARKK) was pacing for its worst 5-day performance in eight months, as the fund heavily weighted in growth stocks was hit by this week’s technology stock rout. 

The exchange-traded fund was off by about 12.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over the last five days through intraday trading on Tuesday. That’s come as some of the fund’s biggest holdings have posted significant declines over that period: Teledoc Health and Zoom Video Communications, comprising a 5.97{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and 4.95{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} weight in the ETF, respectively, have each dropped more than 24{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Other holdings including Roku, Square and Twilio have also dropped by double-digit percentages over that period. 

One notable exception has been Tesla, or the largest holding in the ETF. Shares of the electric-vehicle maker have risen 2.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over the last five days through Tuesday afternoon. 

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9:49 a.m. ET: U.S. services PMI falls to two-month low, while manufacturing PMI rises to two-month high: IHS Markit

Closely watched indices tracking economic activity in both the U.S. services and manufacturing sectors showed a divergence in early November, with the supply constraints and rising prices dampening growth especially in private service industries. 

IHS Markit’s preliminary November U.S. services purchasing managers’ index (PMI) unexpectedly fell to 57.0 from 58.7 in October, marking the lowest level in two months. Consensus economists had been looking for the index to rise to 59.0, according to Bloomberg data. Readings above the neutral level of 50.0 indicate expansion in a sector.

The firm’s manufacturing PMI, however, rose to a two-month high of 59.1 and matched expectations. The manufacturing PMI had been at 58.4 in October. Taken together with the drop in the services PMI, the composite PMI for November fell to 56.5 from 57.6 in October, in a sign of slowing overall growth. 

“The slowdown underscores how the economy is struggling to cope with ongoing supply constraints,” Chris Williamson, chief business economist for IHS Markit, wrote in a press statement. Although supplier delivery delays eased to the lowest for six months, the lengthening of lead times remains far greater than anything seen prior to the pandemic, restricting output relative to demand and once again causing prices to rise sharply.” 

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9:34 a.m. ET: S&P 500, Nasdaq extend declines as tech drop continues

Stocks open mixed on Tuesday, with both the S&P 500 and Nasdaq declining as technology stocks added to Monday’s losses. 

The Dow hovered little changed, with financials and other cyclical stocks rising further following Federal Reserve Chair Jerome Powell’s renomination to keep his role as leader of the central bank. Goldman Sachs, Chevron and JPMorgan Chase outperformed in the 30-stock index, while Microsoft, Salesforce.com and Nike weighed to the downside. 

Treasury yields also gained across the long end of the curve. The benchmark 10-year yield rose more than 2 basis points to drift just below 1.646{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. 

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7:33 a.m. ET Tuesday: Stock futures mostly lower 

Here’s where markets were trading Tuesday morning:

  • S&P 500 futures (ES=F): -1 point (-0.02{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,678.75

  • Dow futures (YM=F): +21 points (+0.06{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,592.00

  • Nasdaq futures (NQ=F): -26.75 points (-0.16{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,355.25

  • Crude (CL=F): -$0.42 (-0.55{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $76.33 a barrel

  • Gold (GC=F): -$9.30 (-0.51{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,797.00 per ounce

  • 10-year Treasury (^TNX): +2.6 bps to yield 1.651{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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6:06 p.m. ET Monday: Stock futures open slightly higher

Here’s where markets were trading Monday evening:

  • S&P 500 futures (ES=F): +7.5 points (+0.16{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,687.25

  • Dow futures (YM=F): +49 points (+0.14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,620.00

  • Nasdaq futures (NQ=F): +28.5 points (+0.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,410.50

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 8, 2021. REUTERS/Brendan McDermid

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 8, 2021. REUTERS/Brendan McDermid

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

Posted on

Nasdaq jumps as Amazon, Apple gain while Dow posts back-to-back session of losses

Nasdaq jumps as Amazon, Apple gain while Dow posts back-to-back session of losses

Stocks were mixed on Thursday as investors weighed a batch of solid corporate earnings results against lingering inflation concerns. 

The S&P 500 and Nasdaq ended a choppy session higher. The Dow lagged, led by a drop in shares of Cisco (CSCO). The company posted quarterly results that were dented by components shortages, and the computer networking equipment company posted a disappointing current-quarter forecast. And meanwhile, Alibaba’s (BABA) sharply disappointing quarterly report and slashed guidance for the full year raised alarm bells about the pace of growth in China — the world’s second-largest economy — as company executives highlighted slowing consumption trends

Nvidia (NVDA) shares jumped, however, after the semiconductor company posted record quarterly revenues and strong full-year guidance. The report suggested it was effectively navigating a lingering global shortage and meeting elevated demand. 

The past couple days of equity market volatility have coincided with a mixed set of economic data, with a new print Thursday showing jobless claims ticked down only modestly last week, and a report Wednesday showing a surprise drop in new-home construction last month. Commentary about inflation also mounted and added to investors’ concerns over elevated price pressures. Target (TGT) executives flagged rising labor and other input costs during their earnings call on Wednesday and added to a chorus of other company mentions of inflation. 

The possibility that elevated inflation will stick around longer than previously anticipated remained a central focus for investors, both for its potential dampening effect on consumer spending, and as a potential catalyst for the Federal Reserve to raise interest rates sooner than previously telegraphed. The U.S. central bank has so far maintained its accommodative tilt and telegraphed that an initial interest rate hike could take place sometime next year, depending on the evolution of the economic recovery. Investors also continue to await a formal announcement from President Joe Biden about his nominee for Fed chair, with the most likely candidates being current Fed Chair Jerome Powell, and current Fed Governor Lael Brainard.

The Fed’s present still-accommodative leaning has helped support equity markets and capped Treasury yields, which has in turn further kept investors focused on riskier assets like stocks over bonds. 

“The yield question is kind of global in nature,” Uma Pattarkine, CenterSquare senior analyst, told Yahoo Finance Live on Wednesday. “We still see [central] banks being very, very accommodative. So it seems like we might be kind of in this ‘lower rate for a longer time’ environment. 

“At this point investors really need to be looking at yields, where they can get it elsewhere in the market if they’re not planning on getting it through fixed income in the near future, until we see that movement in the global rate market,” Pattarkine added.  

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4:13 p.m. ET: Nasdaq and S&P 500 end higher as Amazon, Apple gain; Dow closes slightly lower

Here were the main moves in markets as of 4:13 p.m. ET:

  • S&P 500 (^GSPC): +15.87 (+0.34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,704.54

  • Dow (^DJI): -60.10 (-0.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,870.95

  • Nasdaq (^IXIC): +72.14 (+0.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,993.71

  • Crude (CL=F): +$0.35 (+0.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $78.71 a barrel

  • Gold (GC=F): -$7.80 (-0.42{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,862.40 per ounce

  • 10-year Treasury (^TNX): -1.5 bps to yield 1.5890{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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1:32 p.m. ET: ‘It’s not just an inflation story, it’s a growth story’: UBS 

Investors should take into consideration both rising inflation and improving economic growth in the current macro environment when contemplating investments, Jason Draho, UBS head of asset allocation Americas, noted to Yahoo Finance Live on Thursday.

“The environment right now that’s leading to inflation is also tied to a very strong economic recovery in the U.S., but even increasingly globally. Part of that story means, it’s not just an inflation story, it’s a growth story,” Draho said. “So things that you can do in your portfolio and ways to take advantage of it and sort of get the benefit of both aspects, which means buying things tied to what’s in demand … things like commodities, financials, things of that sort. So part of this is a hedge for inflation but part of it is also a play for a longer-term recovery.” 

Draho also added that some of the factors contributing to present levels of inflation — namely, supply-side disruptions — may soon dissipate. 

“I’d say we’re at the peak or even probably past the peak,” of supply chain bottlenecks, he added. “It’s still going to probably take at least a few quarters for things to really sort of be running fully efficiently.” 

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12:30 p.m. ET: Microsoft shares set record intraday high, Amazon’s stock jumps to reach highest since July 

Big Tech stocks outperformed on Thursday to help pull the S&P 500 and Nasdaq higher, and both shares of Microsoft and Amazon set new milestones. 

Microsoft (MSFT) shares rose to a record intraday high, sending the stock’s market capitalization further above $2.5 trillion. Amazon (AMZN) shares, meanwhile, jumped to their highest level since July, helping unwind a multi-month drift that still left the stock underperforming against the S&P 500 for the year-to-date. 

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10:11 a.m. ET: Macy’s shares jump more than 18{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after topping 3Q results, raising guidance

Macy’s (M) became the latest retailer to exceed quarterly estimates this week, suggesting U.S. consumer spending was staying solid and foot traffic to department stores was rebounding more quickly than expected. 

Macy’s owned plus licensed comparable same-store sales jumped by 35.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, exceeding the 33.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} growth rate expected, based on Bloomberg consensus data. The company also swung back to a profit, with adjusted earnings coming in at $1.23 per share, following a loss of 19 cents a share in the same quarter last year. Gross margins expanded by about 100 basis points, “driven by stronger regular price selling, fewer markdowns” that offset rising delivery costs, CEO Jeff Gennette said during the company’s earnings call. 

“On the health of the customer, we definitely see that continuing,” Gennette added. 

For the full year, Macy’s sees adjusted earnings coming in between $4.57 to $4.76 per share, marking a significant increase from its prior outlook for $3.41 to $3.75 a share. 

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9:50 a.m. ET: Alibaba shares slide after missing earnings estimates, slashing guidance

Alibaba posted September quarter results and guidance that sharply missed estimates, with a slowing economic environment in China and efforts to contain the coronavirus in the region weighing on consumer spending on the e-commerce platform.

“Over the last 6 months, we have observed softer market conditions with slowing consumption growth in China,” Alibaba Chief Financial Officer Wei Wu said during the company’s earnings call Thursday. “Given slower-than-expected domestic consumption growth, since we provided our revenue guidance in May, we now expect our fiscal ’22 revenue growth to be 20-23{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} year-over-year.” 

Consensus analysts were expecting full-year sales growth of 27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, based on Bloomberg data. 

For Alibaba’s latest reported quarter, sales grew by a smaller-than-expected 29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to reach 200.7 billion yuan ($31.4 billion), whereas analysts were looking for 206.2 billion yuan. Adjusted earnings per American depository share were 11.20 yuan, also short of the 12.37 expected. The weakness was mostly contained to Alibaba’s core retail business, with its newer cloud computing business posting a 33{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise in revenue during the quarter. 

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9:30 a.m. ET: Stocks mixed, tech leads Nasdaq higher 

Here’s where markets were trading shortly after market open on Thursday: 

  • S&P 500 (^GSPC): +8.82 (+0.19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,697.49

  • Dow (^DJI): -20.03 (-0.06{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,913.81

  • Nasdaq (^IXIC): +24.55 (+0.15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,941.73

  • Crude (CL=F): +$0.45 (+0.57{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $78.81 a barrel

  • Gold (GC=F): -$5.60 (-0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,864.60 per ounce

  • 10-year Treasury (^TNX): unchanged to yield 1.6040{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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8:35 a.m. ET: Initial unemployment claims come in slightly higher-than-expected, but still reach fresh pandemic-era low

First-time unemployment claims narrowly set a new pandemic-era low last week, representing further steady progress in the labor market’s recovery as the number of those newly unemployed marched closer to pre-pandemic levels. 

New unemployment claims came in at 268,000 during the week ended Nov. 13. This was down by a tick compared to the upwardly revised 269,000 reported for the previous week. Consensus economists were looking for new claims to come in at 260,000 for the latest period, according to Bloomberg data.

Continuing claims across regular state programs also came in at their lowest level since March 2020 at 2.080 million for the week ended Nov. 6. This was a bigger improvement than expected, since economists were looking for continuing claims to total 2.120 million. 

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7:32 a.m. ET Thursday: Stock futures advance 

Here’s where markets were trading Thursday morning:

  • S&P 500 futures (ES=F): +11.75 points (+0.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,696.00

  • Dow futures (YM=F): +34 points (+0.09{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,901.00

  • Nasdaq futures (NQ=F): +84.25 points (+0.52{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,395.75

  • Crude (CL=F): -$0.67 (-0.84{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $77.69 a barrel

  • Gold (GC=F): -$4.20 (-0.22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,866.00 per ounce

  • 10-year Treasury (^TNX): -0.5 bps to yield 1.599{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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6:17 p.m. ET Wednesday: Stock futures open mixed 

Here’s where markets were trading Wednesday evening:

  • S&P 500 futures (ES=F): +0.5 points (+0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,686.75

  • Dow futures (YM=F): -34 points (-0.09{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,833.00

  • Nasdaq futures (NQ=F): +18 points (+0.11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,329.5

A man walks past the New York Stock Exchange on Wall Street on May 10, 202 in New York City. - Wall Street stocks were mixed early May 10, 2021 ahead of key consumer price and retail sales data expected to influence the outlook for US monetary policy. Major stock indices closed at records Friday following a disappointing April jobs report that bolstered expectations the Federal Reserve will keep interest rates low for a long period of time to support the economic recovery. (Photo by Angela Weiss / AFP) (Photo by ANGELA WEISS/AFP via Getty Images)

A man walks past the New York Stock Exchange on Wall Street on May 10, 202 in New York City. – Wall Street stocks were mixed early May 10, 2021 ahead of key consumer price and retail sales data expected to influence the outlook for US monetary policy. Major stock indices closed at records Friday following a disappointing April jobs report that bolstered expectations the Federal Reserve will keep interest rates low for a long period of time to support the economic recovery. (Photo by Angela Weiss / AFP) (Photo by ANGELA WEISS/AFP via Getty Images)

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