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Stocks rise as traders digest mixed November jobs report

Stocks rise as traders digest mixed November jobs report

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

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

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

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

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

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

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

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

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

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

—

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

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

  • S&P 500 (^GSPC): -38.67 (-0.84{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,538.43

  • Dow (^DJI): -59.71 (-0.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,580.08

  • Nasdaq (^IXIC): -295.85 (-1.92{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,085.47

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

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

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

  • “While November displayed 210,000 jobs gained at the headline level, which some may suggest is a disappointment, when we look at the details of the report, we see some significant strengths. Indeed, the six-month average for non-seasonally adjusted private payroll gains is more than 700,000 jobs/month, an impressive number by any standard … The unemployment rate declined impressively from 4.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in October to 4.24{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in November, even as the labor force grew strongly, an indication of labor market strength.” – Rick Rieder BlackRock’s chief investment officer of global fixed income

  • “Arguably the biggest surprise in the November employment report was the unexpected 0.4 [percentage point] decline in the unemployment rate to 4.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} … slowing job gains and sturdy wages are a signal of a tight labor market.” – Joe LaVorgna, Natixis CIB managing director and chief economist of the Americas

  • “Today’s jobs report presents a mixed picture of the labor market recovery as storm clouds gather from a rebounding Delta variant and new variant looms. The divergence between the establishment and household surveys is unusual, but is an important reminder of how difficult it is to measure the labor market in a pandemic.” – Daniel Zhao, Glassdoor senior economist

  • “Overall, while this report is disappointing, it does not change our view that faster tapering will be announced in December, unless the scientific news on the Omicron variant over the next couple weeks is disastrous. The Fed is focused on the inflation overshoot, which will get much worse before it gets better, and officials have made it very clear that they want to take out insurance against the risk that the latest spike does not become embedded.” – Ian Shepherdson, chief economist for Pantheon Macroeconomics

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

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

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

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

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

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

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

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

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

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

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

  • S&P 500 (^GSPC): +23.48 (+0.51{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,600.58

  • Dow (^DJI): +125.06 (+0.36{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,746.85

  • Nasdaq (^IXIC): +89.04 (+0.58{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,466.81

  • Crude (CL=F): +$2.39 (+3.59{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $68.89 a barrel

  • Gold (GC=F): +$8.90 (+0.50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,771.60 per ounce

  • 10-year Treasury (^TNX): +1.1 bps to yield 1.46{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} 

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

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

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

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

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

—

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

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

  • S&P 500 futures (ES=F): +0.25 points (+0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,576.00

  • Dow futures (YM=F): +11 points (+0.03{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,633.00

  • Nasdaq futures (NQ=F): -1 points (-0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,987.50

  • Crude (CL=F): +$1.89 (+2.84{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $68.39 a barrel

  • Gold (GC=F): +$10.80 (+0.61{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,773.50 per ounce

  • 10-year Treasury (^TNX): -1.8 bps to yield 1.432{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

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

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

  • S&P 500 futures (ES=F): +11.5 points (+0.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,587.25

  • Dow futures (YM=F): +94 points (+0.27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,716.00

  • Nasdaq futures (NQ=F): +34.50 points (+0.22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,023.00

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

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

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

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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)

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

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An Unpredictable Year for Travel Has Fueled a Rise in Travel Insurance Purchases, According to BHTP’s Annual Survey

An Unpredictable Year for Travel Has Fueled a Rise in Travel Insurance Purchases, According to BHTP’s Annual Survey

STEVENS Stage, Wis.–(Business WIRE)–Berkshire Hathaway Journey Defense (BHTP) these days announced the conclusions of its seventh yearly Condition of Vacation Insurance policies study, which disclosed that although vacation quantity is reaching some of its highest stages given that the start of the pandemic, customers glimpse at vacation with new skepticism and warning, mostly because of to prevalent flight disruptions and epidemics. This is fueling a increased recognition of what journey coverage does and driving customers to order it a lot more often.

According to the study:

  • 29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of respondents bought vacation coverage most of the time they traveled in 2021, in comparison to only 7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} who ordered it for most of their 2020 travels.
  • 41{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} explained epidemics had been a rationale to obtain travel insurance much more frequently in 2021, up from 30{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in 2020.
  • 30{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of respondents cited being aware of what journey insurance coverage covers as a motive to acquire coverage a lot more frequently in 2021, when compared to 23{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in 2020, an indication that the upheavals of the pandemic drew travelers to teach themselves on travel insurance positive aspects.

“With widespread flight cancellations and travel disruptions dominating the information recently, it can be no surprise that much more tourists are shopping for insurance policy far more usually,” mentioned Carol Mueller, Vice President of Berkshire Hathaway Travel Security. “During these unsure occasions, persons want to shield their journey investments and health and fitness though traveling and are actively educating them selves about protection that can help with excess expenses that arrive with typical inconveniences.”

The next are further essential results from the State of Journey Insurance coverage similar to traveler basic safety and vacation behaviors and intentions.

  • Behavioral alterations tourists adopted all through the pandemic will go on into up coming yr, with respondents indicating they will continue to journey to see family, dress in masks, clean palms extra usually, and retain length from crowds.
  • Most secure and least safe places, as rated in our survey:

    • A minimal incidence of violent criminal offense and crimes/harassment versus vacationers of colour and the LGBTQ+ community rated among the the most crucial variables that contributed to a traveler emotion secure at a destination. These aspects affected perceptions of security extra than a locale remaining absolutely free from illness and terrorist incidents.
    • Montreal and Singapore ranked as the safest towns amongst the 30 frequently traveled places stated by respondents, when survey contributors rated Rio de Janeiro, Cairo and Mexico Town as much less safe than other metropolitan areas.
    • Canada and Iceland rated in the major positions of the 30 safest nations around the world detailed by respondents, though Israel and Egypt ended up rated fewer safe and sound than other folks.
    • Millennials, who are foremost international travel quantities, take into consideration Europe and Asia the most secure places.
    • Millennials (especially large-earnings Millennials) have the greatest intentions to vacation, with 70{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} agreeing they would expend $10,000 on journey in 2022.

BHTP’s Point out of Journey Insurance policies investigation has been carried out each and every slide because 2015 by Polymath Investigate + Advertising and marketing, applying unbiased national panels surveying thousands of buyers on upcoming anticipations in travel insurance policy and travel routines. For a whole report, be sure to email the call under.

About the State of Vacation Insurance plan

The State of Travel Insurance is an once-a-year survey that experiences insights on not only journey insurance policy order developments, but also journey anticipations. This year’s study collected responses from approximately 1,500 U.S. tourists about their journey practices, their experiences in 2021 and expectations for 2022.

About Berkshire Hathaway Journey Protection

Berkshire Hathaway Journey Security (BHTP) is a registered trademark and a subsidiary of Berkshire Hathaway Specialty Insurance coverage Corporation, a leader in specialized casualty and liability coverage. Berkshire Hathaway Specialty Coverage Organization supplies underwriting and promises administration products and services for some of the premier distributors of travel coverage in the United States. Produced less than the Berkshire Hathaway Travel Protection trade title is the ExactCare® line of journey coverage, AirCare® flight, WaveCare®, AdrenalineCare®, LuxuryCare® and other vacation-similar protections. The AirCare® and ExactCare® solutions are presented by Berkshire Hathaway Specialty Insurance coverage Firm. Check out bhtp.com for much more information.

About Polymath Investigation + Marketing

Polymath Investigation + Internet marketing is a entire-company market-analysis and advertising agency that specializes in crafting tailor made research and content to assistance organizations achieve their organization and promoting targets. PRM at this time expert services corporations in the insurance plan, vacation, sports, and producing industries, and gives study and material aid to quite a few major companies. To find out extra take a look at www.polymathpower.com.

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S&P 500, Dow and Nasdaq rise to reach fresh all-time highs; markets await Fed decision

S&P 500, Dow and Nasdaq rise to reach fresh all-time highs; markets await Fed decision

Stocks reached fresh all-time highs on Tuesday in another record-setting session, with investors cheering another set of better-than-expected corporate earnings results. 

The Dow and S&P 500 gained while the Nasdaq rose more modestly, weighed by a drop in Tesla (TSLA) after CEO Elon Musk downplayed the expected impact of a deal with car rental giant Hertz. Investors watched with optimism as more corporate earnings results exceeded expectations and defied concerns over ongoing supply chain constraints, shortages and cost pressures. 

Clorox (CLX) became one of the latest major names to top estimates in results posted Monday after the closing bell, with the cleaning supplies and home goods company topping third-quarter sales and profits estimates and reaffirming its full-year guidance even as the company said it expects “cost pressures to persist.” Shares of Avis (CAR) and Simon Property Group (SPG) also jumped, with both of these companies posting quarterly earnings that exceeded expectations after market close. 

Heading into this week, the expected earnings growth rate for the S&P 500 was at 36.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for the third quarter, which while a step down from the second quarter’s rate, would still mark the third-highest pace in data spanning back to 2010, according to FactSet. 

“I don’t think what’s going on is terribly surprising,” when it comes to the sizable year-over-year earnings growth many companies have reported for the third quarter, Pacer ETF’s President Sean O’Hara told Yahoo Finance Live. “I think what we need to see going forward is, is it sustainable, or are some of these outside factors going to be a bigger challenge than we expect?”

“Is inflation and the input costs that the producers are dealing with, is that going to derail things? Is the lack of workers?” he added. “There’re a lot of things out there that could potentially derail the market, especially as you’re making this transition from where we are, which is easy comparables versus last year, to more difficult ones going forward.” 

In addition to the solid backdrop of corporate earnings, an ongoing economic recovery and still-accommodative positioning by monetary policymakers have also helped underpin equities in their march to new highs. For investors, the Federal Reserve’s latest monetary policy decision on Wednesday will help suggest how long the central bank will maintain its current levels of support. Many pundits expect to see the bank begin to pull back the asset purchases that comprised its quantitative easing program that had helped support the recovery, with fresh economic data reflecting a U.S. economy closing in on pre-pandemic conditions. 

“We think that better days are ahead. Earnings are still growing at a pretty healthy clip. There’s a lot of people focusing on peak growth rates. That’s probably not the way to look at it,” Sameer Samana, Wells Fargo senior global market strategist, told Yahoo Finance Live. “From our standpoint, those low interest rates, still stimulative policy and really strong growth are what set the stage for strong equities in the next year.” 

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4:05 p.m. ET: S&P 500, Dow and Nasdaq rise to reach fresh all-time highs; markets await Fed decision

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

  • S&P 500 (^GSPC): +16.98 (+0.37{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,630.65

  • Dow (^DJI): +138.79 (+0.39{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 36,052.63

  • Nasdaq (^IXIC): +53.69 (+0.34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,649.60

  • Crude (CL=F): -$0.55 (-0.65{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $83.50 a barrel

  • Gold (GC=F): -$6.90 (-0.38{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,788.90 per ounce

  • 10-year Treasury (^TNX): -2.6 bps to yield 1.5490{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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12:36 p.m. ET: Residential rental vacancy rate dips in 3Q to near pre-pandemic levels

The U.S. vacancy rate for rental housing fell in the third quarter to close in on pre-pandemic levels. 

Rental vacancies reached 5.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in the three months ending in September, marking the lowest level since the second-quarter of 2020. This fell by 6.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} compared to the second quarter and from 6.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in the same period last year. 

Rent prices have also been increasingly notably over the course of the past year, with the median asking rent for vacant units rising to $1,203 in the third quarter from $1,160 a year earlier. And in the Bureau of Labor Statistics’ consumer price index, rent of primary residence prices last increased by 0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in September compared to August, accelerating from a rise of 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} during the prior month. 

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11:35 a.m. ET: Avis shares surge, triggering volatility halt after 3Q estimates point to strong car-rental demand

Shares of Avis (CAR) more than doubled on Tuesday alone after the car-rental company posted third-quarter estimates that far exceeded consensus estimates, pointing to solid demand for rentals. 

At session highs on Tuesday, the stock more than tripled to reach a record $545.11 per share. This outsized move to the upside triggered at least one volatility halt in the stock. Third-quarter net revenue nearly doubled over last year to reach $3 billion, and adjusted earnings per share of $10.74 were much better than the $7.24 expected. The company also said it would add more electric vehicles to its fleet over time during its quarterly earnings call with analysts.

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11:27 a.m. ET: Chegg shares plunge after lowering guidance, with company saying ‘education industry is experiencing a slowdown’ 

Shares of education company Chegg (CHGG) sank 45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} Tuesday morning after the company lowered its full-year guidance and highlighted a slowdown in the broader higher education industry. 

For the third quarter. Chegg reported revenue of $171.94 million, which missed expectations for $174 million, according to Bloomberg consensus data. The firm also lowered its forecast for both revenue and adjusted EBITDA for the full year, and now sees revenue coming in at as much as $764 million, versus the as much as $815 million seen previously. 

“In late September it became clear to us that the education industry is experiencing a slowdown that we believe is temporary and is a direct result of the Covid-19 pandemic,” CEO Dan Rosensweig said in prepared remarks for the company’s earnings call. 

“A combination of variants, increased employment opportunities and compensation, along with fatigue, have all led to significantly fewer enrollments than expected this semester,” he added. And those students who have enrolled are taking fewer and less rigorous classes and are receiving less graded assignments”

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9:42 a.m. ET: Tesla gives back some gains as Musk plays down Hertz deal

The carmaker’s high-flying stock is under pressure in early trading, after Elon Musk tweeted that Tesla has not yet signed on the dotted line with Hertz, which announced a deal last week to add Model 3s to its fleet of rentals. Musk also stated that regardless, the deal would have “zero impact” on Tesla’s bottom line.

But Hertz said it’s already receiving cars under its plan to add 100,000 Tesla EVs through 2022, but didn’t respond directly to Musk’s remark:

As we announced last week, Hertz has made an initial order of 100,000 Tesla electric vehicles by the end of 2022 and is investing in new EV charging infrastructure across the company’s global operations. Deliveries of the Teslas already have started, and consumer reaction to our commitment to lead in electrification has been beyond our expectations.

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9:30 a.m. ET: Stocks open flat ahead of the Fed

Here were the main moves in markets as of 9:30 a.m. ET:

  • S&P 500 (^GSPC): 4,619.64, +5.97 (+0.13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a})

  • Dow (^DJI): 35,924.83, +10.99 (+0.03{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a})

  • Nasdaq (^IXIC): 15,611.21, +15.30 (+0.10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a})

  • Crude (CL=F): $83.42 per barrel, -$0.63 (-0.75{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a})

  • Gold (GC=F): $1,792.90 per ounce, -$2.90 (-0.16{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a})

  • 10-year Treasury (^TNX): 1.5590{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, -0.016 bps

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7:25 a.m. ET Tuesday: Stock futures point to a mixed open

Here’s where markets were trading Tuesday morning:

  • S&P 500 futures (ES=F): -0.25 points (-0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,605.50

  • Dow futures (YM=F): +9 points (+0.03{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,809.00

  • Nasdaq futures (NQ=F): -28.25 points (-0.18{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,866.00

  • Crude (CL=F): -$0.39 (-0.46{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $83.66 a barrel

  • Gold (GC=F): -$2.70 (-0.15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,793.10 per ounce

  • 10-year Treasury (^TNX): -1.7 bps to yield 1.556{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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

Here’s where markets were trading as the overnight session kicked off: 

  • S&P 500 futures (ES=F): -2 points (-0.04{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,603.75

  • Dow futures (YM=F): -18 points (-0.05{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,8782.00

  • Nasdaq futures (NQ=F): -16.25 points (-0.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,878.00

A street sign for Wall Street is seen outside the New York Stock Exchange (NYSE) in New York City, New York, U.S., July 19, 2021. REUTERS/Andrew Kelly

A street sign for Wall Street is seen outside the New York Stock Exchange (NYSE) in New York City, New York, U.S., July 19, 2021. REUTERS/Andrew Kelly

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

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Insurance programs for organic and specialty crops on the rise

Insurance programs for organic and specialty crops on the rise

The U.S. Department of Agriculture’s Danger Administration Agency is looking at progress in applications to insure a bigger volume and variety of natural and specialty crops, reflecting increased customer buys of this sort of solutions.

Although the bulk of the USDA crop insurance policy software goes toward commodity crops these types of as corn, wheat and soybeans, the specialty and organic and natural realm is flourishing. 

“Over time we’ve tried using to increase outside the house those main crops for the reason that you have a rising natural sector, you have a developing specialty crop sector. You have persons who are a lot more intrigued in ingesting fruits and veggies. We’ve seriously tried using to make an work to faucet into that a lot more,” explained Richard Flournoy, USDA RMA acting administrator, dependent in Kansas City, Missouri.

Natural and organic meals and nonfood product gross sales totaled $61.9 billion in 2020, breaking the $60 billion mark for the very first time, according to the Organic Trade Association.

The USDA RMA’s pursuits have grown in tandem with this boost. From 1990 to 2020, liabilities for insured specialty crops rose from $1 billion to a lot more than $20 billion. Furthermore, from 2010 to 2020, liabilities for insured organic and natural crops rose from $207 million to much more than $1.7 billion, and the range of procedures has far more than doubled.

“As these forms of coverages occur online and offer risk protection for these farmers – a cherry farmer in Michigan, an avocado farmer in Florida – the farmer has much more assurance to step into that area and deliver that crop,” stated Bob Haney, executive chairman of AgriSompo and CEO of AgriSompo North The usa, in Des Moines, Iowa.

Mr. Haney said he has observed much more inquiries from purchasers bringing specialty crops to insure, with one particular case in point currently being pistachios. Sompo has also viewed progress in coverages for dairy solutions, as livestock is also less than the auspices of the USDA coverage application.

Lockton Cos. LLC has viewed development in the organics sector given that it expanded its crop insurance policies division in 2018, mentioned Ginny Olson, vice president and senior account executive, crop insurance policies, who joined the broker to support establish the business. “My expansion has been in the organics space,” she mentioned.

While the commodity crops that constitute the bulk of the USDA method reward from many years of output data on which to base policy and rate calculations, specialty crops do not. “In Iowa, we’ve developed corn for 50 years. We don’t have 50 yrs of carrots, celery” and others, Mr. Haney explained.

The USDA RMA’s Complete-Farm Profits Safety program can assistance producers of more compact crops by furnishing a chance management safety web under an insurance plan coverage for all commodities on a farm as opposed to a solitary commodity crop.

Producers bought much more than 2,000 these kinds of insurance policies to secure $2.26 billion in liabilities in 2020, and the RMA is in the procedure of revising the strategy to make it far more adaptable and accessible to producers commencing in crop 12 months 2022.

Feasible insurance plan for the organics market is vital for its ongoing success both of those simply because of the industry’s nascent state compared with big commodities and the additional expenses for natural fertilizer and the like, Ms. Olson claimed.

Sompo a short while ago expanded additional into the agriculture sector.  Sompo Worldwide Holdings Ltd., a Bermuda-dependent specialty company of assets/casualty insurance plan and reinsurance, declared past December the completion of its acquisition of Diversified Crop Insurance policy Services, a subsidiary of CGB Enterprises Inc.

Diversified was mixed with ARMtech, Sompo International’s existing U.S. federally sponsored multi-peril crop insurance provider, to run below the brand name-name AgriSompo North America

with combined gross created premiums of around $2 billion.