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Stocks come off session lows, but S&P 500 posts 5th straight day of losses

Stocks come off session lows, but S&P 500 posts 5th straight day of losses

Stocks pared losses heading into market close on Monday, with technology stocks steadying after a rout as investors anticipated higher interest rates this year and looked ahead to several key economic data and earnings reports later this week.

The S&P 500 dropped more than 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} at session lows but ended only marginally lower by the end of the day. The Nasdaq Composite turned slightly positive, erasing earlier losses to end a four-day losing streak. Other risk assets also came under pressure, and Bitcoin prices briefly fell below $40,000 for the first time in about four months.

Treasury yields climbed, and the benchmark 10-year yield topped 1.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to reach its highest level since January 2020. 

“The surge in rates since early December has crushed the valuation of stocks with high growth and low margins, but a well-ordered progression of Russell 3000 stocks implies further repricing,” Goldman Sachs chief equity strategist David Kostin wrote in a note.

“We have previously shown the speed of rate moves matters for equity returns,” Kostin added. “Equities typically struggle when the 5-day. or 1-month change in nominal or real rates is greater than 2 standard deviations. The magnitude of the recent yield qualifies as a 2+ standard deviation event in both cases.”

The move higher in yields and volatility across U.S. equities came after the release of the Federal Reserve’s December meeting minutes mid-last week. These suggested some central bank officials were eyeing a quicker start to interest rate hikes and balance sheet runoff process than many market participants had expected. Goldman Sachs economists now predict the Fed will raise interest rates four times this year — or one time more than the firm previously expected — and that the central bank’s balance sheet reduction will begin in July or earlier. 

Last week’s “price action in 10-years was all about what the Fed will do with its balance sheet,” Nicholas Colas, co-founder of DataTrek Research, wrote in a note. “We’ll know more on Tuesday, with [Federal Reserve Chair Jerome Powell’s] renomination hearing set for 10 a.m. One thing we’re confident about: equity market volatility is not over yet.”  

“His confirmation hearing will be a chance for him to further reassure lawmakers and the public that the Fed is focused on reducing inflation in 2022,” Colas added. “We expect that to feed further market volatility this week.” 

In addition to Powell’s confirmation hearing before the Senate Banking Committee on Tuesday, investors will also be looking ahead to a new inflation report on Wednesday. The Bureau of Labor Statistics will release the December Consumer Price Index (CPI) that day, which is expected to show an about 7.0{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} year-over-year jump in prices — or the biggest rise since 1982. And at the end of the week, big banks including JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC) are each slated to report Friday morning before the opening bell.

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4:09 p.m. ET: Stocks come off session lows, but S&P 500 posts 5th straight day of losses

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

  • S&P 500 (^GSPC): -6.74 (-0.14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,670.29

  • Dow (^DJI): -162.79 (-0.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 36,068.87

  • Nasdaq (^IXIC): +6.93 (+0.05{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,942.83

  • Crude (CL=F): -$0.48 (-0.61{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $78.42 a barrel

  • Gold (GC=F): +$3.30 (+0.18{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,800.70 per ounce

  • 10-year Treasury (^TNX): +0.9 bps to yield 1.7800{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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12:17 p.m. ET: Tesla shares head for longest losing streak in 10 months amid tech rout 

Tesla’s (TSLA) stock were on track to post a fifth consecutive session of losses, as shares of the world’s most valuable auto-maker by market cap came under pressure amid a broader sell-of in highly valued growth stocks. 

A fifth day of losses would mark Tesla’s longest losing streak since March of last year. Shares have fallen more than 15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from market close on Jan. 3 through intraday trading on Monday. 

The drop also came despite a bullish call from Goldman Sachs, which raised its 12-month price target on the stock to $1,200 from $1,125 previously and maintained a Buy recommendation on shares. 

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10:41 a.m. ET: U.S. wholesale inventories revised up in November as restocks pick up

Wholesale inventories in the U.S. were revised up more-than-expected for November, suggesting restocking activity increased and helped alleviate some ongoing supply chain pressures across the economy.

Wholesale inventories rose by 1.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in the Commerce Department’s final monthly print for November, coming in above the 1.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise previously reported. This came following a 2.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} increase in inventories in October. 

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10:15 a.m. ET: Bitcoin slides, falling below $40,000 for the first time in four months 

Bitcoin prices sank on Monday as cryptocurrencies extended declines after a volatile start to the year.

The largest cryptocurrency by market capitalization saw prices fall more than 5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to below $40,000 at session lows Monday morning in New York, based on Yahoo Finance data. That marked the first time prices broke below that threshold since September. Prices steadied just below $41,000 as of 10:15 a.m. ET. 

Other cryptocurrencies also saw prices sink. Ethereum, the second-largest cryptocurrency by market cap, dropped more than 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to dip below $3,000. 

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

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

  • S&P 500 (^GSPC): -32.62 (-0.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,644.41

  • Dow (^DJI): -114.81 (-0.32{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 36,116.85

  • Nasdaq (^IXIC): -189.4 (-1.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,765.79

  • Crude (CL=F): -$0.36 (-0.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $79.10 a barrel

  • Gold (GC=F): +$4.90 (+0.27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,794.10 per ounce

  • 10-year Treasury (^TNX): +2.7 bps to yield 1.803{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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8:30 a.m. ET: Lululemon shares slide after company says it sees sales, earnings hit from Omicron 

Shares of athletic apparel-maker Lululemon (LULU) sank Monday morning after the company said it expected to see a hit to fourth-quarter revenue and profits due to impacts from soaring Omicron variant cases.

“We started the holiday season in a strong position but have since experienced several consequences of the Omicron variant, including increased capacity constraints, more limited staff availability, and reduced operating hours in certain locations,” Lululemon CEO Calvin McDonald said in a press statement Monday. 

The company expects fourth-quarter net revenue “to be toward the low end of its range of $2.125 billion to $2.165 billion, and that it expects diluted earnings per share and adjusted diluted earnings per share to be toward the low end of its ranges of $3.24 to $3.31 and $3.25 to $3.32, respectively.”  

Shares fell about 7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in early trading. The stocks has declined by more than 9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for 2022-to-date through Friday’s close. 

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7:40 a.m. ET Monday: Stock futures head for mixed open

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

  • S&P 500 futures (ES=F): -13.5 points (-0.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,654.25

  • Dow futures (YM=F): -41 points (-0.11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 36,066.00

  • Nasdaq futures (NQ=F): -97.5 points (-0.63{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,483.50

  • Crude (CL=F): -$0.53 (-0.67{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $78.37 a barrel

  • Gold (GC=F): +$1.30 (+0.07{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,798.70 per ounce

  • 10-year Treasury (^TNX): unchanged, yielding 1.769{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

NEW YORK, NEW YORK - JANUARY 07: Traders work on the floor of the New York Stock Exchange (NYSE) on January 07, 2022 in New York City. Markets fell slightly in morning trading as investors reacted to a government jobs report showing that the U.S. economy added far fewer jobs than expected in December. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – JANUARY 07: Traders work on the floor of the New York Stock Exchange (NYSE) on January 07, 2022 in New York City. Markets fell slightly in morning trading as investors reacted to a government jobs report showing that the U.S. economy added far fewer jobs than expected in December. (Photo by Spencer Platt/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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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

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Willis posts higher revenue despite recent business disruption

Willis posts higher revenue despite recent business disruption

Willis Towers Watson PLC on Thursday noted 3rd-quarter profits of $1.97 billion, up 7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on an organic and natural basis, as the brokerage’s prime executives explained the worst of the the latest enterprise disruption is behind it.

Workers departures to rivals whilst its proposed merger with Aon PLC was even now remaining pursued have peaked, but progress in Willis’ company hazard and broking business enterprise will be compressed through the very first fifty percent of 2022, the brokerage’s senior executives claimed on an earnings connect with with analysts.

Aon terminated its $30 billion arrangement to acquire Willis on July 26 in the face of regulatory scrutiny.

Willis’ 3rd-quarter earnings progress was “solid,” CEO John Haley said on his closing earnings connect with with analysts ahead of his retirement at year’s finish.

Employees departures were being most pronounced in company danger and broking in the next and 3rd quarters of this yr and induced the segment’s natural and organic income growth to “trail field-expected averages so significantly in 2021,” Mr. Haley claimed.

In the third quarter Willis centered on “stemming attrition and employing talent,” he reported. The company hazard and broking company is down about 100 workers, or just underneath 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on a web basis, in contrast with the third quarter of very last calendar year.

New organization outcomes have remained “strong” for corporate chance and broking and Willis is getting “back on the entrance foot” with respect to employing which exceeded departures for the segment in the quarter, Carl Hess, president and incoming CEO, mentioned on the connect with.

Net income for the 3rd quarter was $903 million, an boost of 646{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, Willis mentioned in its earnings assertion.

Willis mentioned its results benefited from the $1 billion termination rate it gained from Aon immediately after the merger offer collapsed in the course of the third quarter.

Willis’ company hazard and broking segment noted third-quarter income of $697 million, an raise of 7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from the prior-12 months third quarter, and up 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on an natural and organic foundation.

North The usa earnings was up 12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on an organic and natural basis in the third quarter, pushed by new business, particularly in mergers and acquisitions monetary, govt and professional risks development and aerospace lines.

Intercontinental and Great Britain earnings increased 4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, respectively, principally driven by advancement in the retail and economic, govt and professional hazard insurance policy strains.

Income for Western Europe was up nominally as growth in Poland and Sweden was largely offset by the departure of senior staff members, which pressured the enterprise in sure geographies, Mr. Haley mentioned.

In Willis’ other functioning segments, benefits shipping and delivery and administration described income of $242 million, up 7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} human cash and added benefits grew 7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $852 million and investment decision, chance and reinsurance earnings declined 22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $172 million.

Willis is “well-positioned” to execute on its very long-time period plans outlined in the brokerage’s current investor day presentation, Main Economical Officer Andrew Krasner said throughout the simply call. Willis has explained it intends to deliver $300 million in value cuts, a 25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} margin enlargement by 2024, and $4 billion in share repurchases, among other plans.

Mr. Hess mentioned going forward Willis will switch its true estate portfolio into “collaboration space” somewhat than a “come to the office environment place.”

The proposed sale of Willis’ reinsurance business enterprise is “progressing as we thought it would,” Mr. Hess said. Matter to essential regulatory approvals, the deal is expected to shut no later than the to start with quarter of 2022, he reported.

Posted on

Dow posts all-time closing high, Nasdaq dips as Snap shares drop by record

Dow posts all-time closing high, Nasdaq dips as Snap shares drop by record

Stocks were mixed on Friday as investors digested new commentary on asset-purchase tapering and inflation from Federal Reserve Chair Jerome Powell, amid a slew of fresh earnings reports from major companies. 

The Dow set a record closing high, taking out a previous record close from August 16. The S&P 500 retreated after setting a fresh intraday record high. The reversal to the downside came as Powell said the central bank was “on track to begin a taper of our asset purchases that, if the economy evolves broadly as expected, will be completed by the middle of next year” during a virtual event hosted by the South African Reserve Bank Friday. The central bank had previously telegraphed it believed the economy was nearing the recovery threshold that would warrant the start to tapering of the Fed’s crisis-era asset purchase program. 

Powell also noted he expected elevated inflationary pressures spurred by global supply constraints “are likely to last longer than previously expected, likely well into next year.”

The Nasdaq underperformed following a couple of weaker-than-expected technology earnings. 

Snap (SNAP) shares sank by a record 27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after missing third-quarter revenues and offering weak current-quarter guidance, with Apple’s iOS privacy updates denting the social media platform’s advertising business. The miss also catalyzed a drop in shares of peer social media companies including Facebook (FB) and Alphabet (GOOGL). 

Shares of Intel (INTC) also dropped after the company said margins would be under pressure for the next up to three years, in part reflecting challenges from global materials shortages. And Chipotle (CMG) shares fluctuated between small gains and losses despite posting better-than-expected quarterly same-store sales, though the company flagged widespread staffing shortages. 

Despite some of the more recent, mixed earnings results, the S&P 500 and Dow have hovered within striking distance of their all-time highs, boosted by a string of earlier estimates-topping quarterly corporate profits and economic data. Both have served to stave off concerns over a decelerating growth environment after a surge in reopening activity earlier this year. 

New data on Thursday showed weekly jobless claims improved to their lowest level since March 2020 last week, falling more-than-expected as firings, layoffs and other involuntary separations slowed further in the labor market. And existing home sales posted their biggest jump since September 2020 last month, showing still-robust demand for homes even as inventory remained tight and prices crept higher.

And based on quarterly results so far, many companies have shown they managed to grow profits even in the face of rising input and labor costs and supply chain challenges.

“Let’s not forget, we’re coming off of very high margins, so there is room for a little compression there. What we’re seeing in the early earnings releases, which is maybe the reason for equity markets hitting new highs, is that the operating leverage inside of companies right now is so significant,” Gibson Smith, Smith Capital Investors founder, told Yahoo Finance Live on Thursday. “Think of top-line growth in the 18{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} arena, or you see bottom-line growth in the 50, 60, 70{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. These are all positives for corporate America, and I think will actually be the fuel to launch equity prices to higher levels.”

Investors are hoping for more affirmation on the solid trends seen so far in corporate profits next week, with a more robust set of third-quarter earnings results due for release. The heavily weighted stock index components, from Apple to Amazon and Facebook, are set to report quarterly results throughout next week.

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4:13 p.m. ET: Stocks end mixed, Dow logs record close

Here’s where markets closed out Friday’s session: 

  • S&P 500 (^GSPC): -4.88 (-0.11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,544.90

  • Dow (^DJI): +73.94 (+0.21{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,677.02

  • Nasdaq (^IXIC): -125.5 (-0.82{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,090.20

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11:37 a.m. ET: American Express shares jump to a record after strong Q3 results, while VF Corp. slides on lingering manufacturing constraints

American Express (AXP) shares hit an intraday all-time high Friday morning after posting third-quarter results that easily topped estimates. 

Revenue of $10.93 billion was up 25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over last year, and exceeded the $10.54 billion expected, according to Bloomberg consensus data. Earnings per share of $2.27 were also better than the $1.77 estimate. 

American Express also issued upbeat commentary on the state of the U.S. consumer, suggesting spending among individuals and small businesses was rebounding to pre-virus levels. 

The card company said it saw a “continued rebound in travel and entertainment spending, with restaurant spending notably resilient, growing above pre-pandemic levels.” It also noted consumer and small business spending on goods and services grew 19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over the third quarter of 2019, on a currency adjusted basis. New users to premium Platinum and Gold Cards also reached all-time highs

Meanwhile, VF Corp.’s (VFC) posted disappointing quarterly results in a report also issued Friday morning, reflecting the negative impacts from ongoing supply-chain challenges for apparel-makers.

The parent company of brands including The North Face and Vans posted adjusted earnings from continuing operations of $1.11, or four pennies below estimates, for its fiscal second quarter. Revenue came in $3.2 billion, or a 23{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} jump over last year but still a miss compared to the $3.5 billion consensus estimate. 

VF Corp attributed the miss to a resurgence of Covid-19 lockdowns in its key sourcing companies, which generated manufacturing capacity constraints during the quarter.

“Additionally, continued port congestion, equipment availability and other logistics challenges have contributed to increasing product delays,” the company added. “VF is working with its suppliers to minimize disruption and is employing expedited freight as needed.”

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11:13 a.m. ET: U.S. service sector activity expands at a faster-than-expected clip in October, while manufacturing activity decelerates slightly

U.S. service sector activity picked up by a greater-than-expected margin in early October, while ongoing supply chain constraints weighed on goods-producing industries, according to new data from IHS Markit on Friday.

IHS Markit’s U.S. services purchasing managers’ index rose to 58.2 in the preliminary October print, exceeding consensus estimates for a reading of 55.2, according to Bloomberg data. The PMI had come in at 54.9 in September, and the latest October print reflected the strongest growth in three months. Readings above the neutral level of 50.0 indicate expansion in a sector. 

“Driving growth in October was the quickest rise in inflows of new work since July, that was commonly attributed to stronger demand conditions as COVID-19 worries eased during the month,” IHS Markit said in its release. “Concurrently, service providers recorded more intense capacity pressures amid reports that firms were struggling to cope with growing sales due to labour issues and supplier delays.”

The manufacturing sector, however, posted a larger-than-expected dip in its PMI compared to September, largely reflecting the impact of rising input costs and materials and labor shortages. The U.S. manufacturing PMI slipped to 59.2 in early October from 60.7 in September, marking a third straight monthly decline. Consensus economists were looking for a reading of 60.5 in October.

“The slower improvement in conditions reflected a weaker expansion in output and a moderation in order book growth during October,” IHS Markit said in its release. “Factory production rose only modestly, with the pace of increase the slowest since July 2020 as output continued to be hampered by supply chain issues and shortages. October saw a record lengthening of suppliers’ delivery times. Supply issues and sustained sales growth prompted firms to further increase their buying activity and inventories.” 

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9:32 a.m. ET: Stocks open mostly lower amid mixed earnings

Stocks were mixed as markets opened for trading on Friday, but still paced toward weekly gains following a record-setting march higher earlier this week.

The Dow traded higher by just 22 points, or less than 0.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, shortly after the opening bell. Both the Nasdaq and S&P 500 dropped as technology stocks sank following earnings misses from Snap and Intel. U.S. crude oil prices rose more than 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to break back above $83 per barrel, while the 10-year Treasury yield hovered around 1.67{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. 

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7:21 a.m. ET Friday: Stock futures trade mixed, with Nasdaq under pressure

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

  • S&P 500 futures (ES=F): +4.75 points (+0.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,546.5

  • Dow futures (YM=F): +59 points (+0.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,539.00

  • Nasdaq futures (NQ=F): -25.75 points (-0.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,453.00

  • Crude (CL=F): +$0.54 (+0.65{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $83.04 a barrel

  • Gold (GC=F): +$11.50 (+0.65{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,793.40 per ounce

  • 10-year Treasury (^TNX): unchanged, yielding 1.674{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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6:07 p.m. ET Thursday: Stock futures edge lower

Here’s where markets were trading Thursday evening: 

  • S&P 500 futures (ES=F): -13.25 points (-0.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,528.50

  • Dow futures (YM=F): -31 points (-0.09{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,449.00

  • Nasdaq futures (NQ=F): -93.75 points (-0.61{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,385.00

NEW YORK, NEW YORK - SEPTEMBER 30: Traders work on the floor of the New York Stock Exchange (NYSE) on September 30, 2021 in New York City. In afternoon trading the Dow was down over 250 points as investors continue to worry about inflation, wages and supply chain issues. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – SEPTEMBER 30: Traders work on the floor of the New York Stock Exchange (NYSE) on September 30, 2021 in New York City. In afternoon trading the Dow was down over 250 points as investors continue to worry about inflation, wages and supply chain issues. (Photo by Spencer Platt/Getty Images)

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