Stocks Archives - Page 3 of 18

June 4, 2022

Stocks drop after strong jobs data renews rate worries

U.S. stocks slid Friday to close the week lower as investors weighed May jobs data that likely gave Fed policymakers a signal labor market conditions can weather a more aggressive rate hiking cycle.

Friday’s sell-off was led by tech stocks, with the Nasdaq Composite falling 2.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The S&P 500 fell 1.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, while the Dow Jones Industrial Average shed 350 points, or 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

Treasury yields rose following Friday’s jobs data, with the yield on 10-year Treasury jumping as much as 7 basis points to just below 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, before retreating to finish the week at 2.96{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

The Labor Department’s latest monthly employment report published Friday morning showed 390,000 jobs were added to the U.S. economy in May, with the unemployment rate holding steady at 3.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Economists had expected job gains to total 318,000 with the unemployment rate falling to 3.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, per Bloomberg consensus data.

Although job growth slowed from April, the labor market remains tight, suggesting the Federal Reserve may proceed with tightening monetary conditions further by raising interest rates — a point of worry for investors who fear central bank policies may tip the economy into a recession.

“Overall, it seems like the job creation machine runs on full-steam and anecdotal evidence has it that hiring remains difficult for businesses of all sizes as demand outpaces supply,” Christian Scherrmann, DWS’ U.S. Economist said in a note.

“Looking ahead, the Fed is most likely to feel reassured that it has struck the right balance lately,” Scherrmann added. “That, in turn, means it is likely to stick to its aggressive monetary normalization path.”

Furthermore, Federal Reserve Bank of Cleveland President Loretta Mester indicated in an interview with CNBC Friday that she supports half point hikes at the next two policy-setting meetings in June and July, and more in autumn if prices don’t cool. Investors had previously hoped for a pause after the summer months.

“I’m going to come into the September meeting, if I don’t see compelling evidence [that inflation is cooling], I could easily be at 50 basis points in that meeting as well,” she said.

In Friday’s session, shares of Tesla (TSLA) closed down more than 9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $703.55 per share after Reuters reported CEO Elon Musk warned of a “super bad feeling” about the economy and said the company is expected to trim about 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of salaried jobs in an email to executives.

Musk also motioned management to “pause all hiring worldwide” in the note. The electric-vehicle giant joins a growing docket of companies that have recently reported grappling with headwinds from macroeconomic uncertainty.

Musk’s warning comes just days after JPMorgan Chase (JPM) boss Jamie Dimon cautioned of a “hurricane” bearing down on the U.S. economy.

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4:00 p.m. ET: S&P 500, Dow, and Nasdaq drop amid jobs data, rate worries

Here’s where the main indexes capped the holiday-shortened trading week:

S&P 500 (^GSPC): -68.39 (-1.64{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,108.43
Dow (^DJI): -349.37 (-1.05{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 32,898.91
Nasdaq (^IXIC): -304.16 (-2.47{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 12,012.73
Crude (CL=F): +$3.43 (+2.93{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $120.30 a barrel
Gold (GC=F): -$17.60 (-0.94{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,853.80 per ounce
10-year Treasury (^TNX): +4.4 bps to yield 2.9570{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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9:35 a.m. ET: Stocks slide as investors mull better-than-expected May employment data

Here were the main moves in markets at the opening bell Friday:

S&P 500 (^GSPC): -48.76 (-1.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,128.06
Dow (^DJI): -289.00 (-0.87{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 32,959.28
Nasdaq (^IXIC): -218.39 (-1.77{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 12,098.51
Crude (CL=F): +$0.34 (+0.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $117.21 a barrel
Gold (GC=F): -$8.60 (-0.46{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,862.80 per ounce
10-year Treasury (^TNX): +7.2 bps to yield 2.9850{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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8:51 a.m. ET: A few early highlights from a first pass at the jobs report

The headline numbers on the May jobs report were right down the middle.

But underneath the surface we’ve got a few indications of where the winds are blowing in a dynamic U.S. labor market.

The number of workers employed in retail fell by 60,700 last month, a sign we’re likely to see folks interpret as indicative of a softening consumer backdrop. The 47,000-worker increase in transportation and warehousing, however, suggests the Amazon side of the retail economy remains intact for now.

Industry-level data also shows leisure & hospitality logged the biggest gains last month, which comes as little surprise given the indications we’ve seen from travel-related plays about their demand backdrop leading into the summer months.

In terms of labor market composition, a 211,000-worker decline in the labor force is notable, as retirements were seen as a headwind last year to the labor market making a full and timely recovery from the pandemic-induced shock.

The duration of unemployment data also gives us an interesting look at the “barbell” structure of the labor market right now — more than 100,000 fewer workers were classified as either unemployed for less than 5 weeks or unemployed for more than 27 weeks. So we see the short-term and long-term unemployed decline as a portion of the overall unemployed population, and from this we could see an argument being made that this remains an “anyone who wants a job can get a job” kind of labor market recovery.

—Myles Udland, senior markets editor

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8:32 a.m. ET: May jobs report comes in better than expected

Job growth last month was better than expected in the U.S. economy.

Here are the latest numbers from the BLS’ May jobs report:

Non-farm payrolls: +390,000 vs. +318,000 expected
Unemployment rate: 3.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} vs. 3.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} expected
Average hourly earnings, month-over-month: +0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} vs. +0.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} expected
Average hourly earnings, year-over-year: +5.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} vs. +5.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} expected

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7:12 a.m. ET: Stock futures stumble ahead of Labor Department’s monthly jobs report

Here’s where the major indexes were in early-hours trading Friday:

S&P 500 futures (ES=F): -22.25 (-0.53{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,153.00
Dow futures (YM=F): -114.00 (-0.34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,109.00
Nasdaq futures (NQ=F): -118.75 (-0.92{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 12,775.00
Crude (CL=F): -$0.78 (-0.67{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $116.09
Gold (GC=F): -$2.00 (-0.11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,869.40 per ounce
10-year Treasury (^TNX): -1.8 bps to yield 2.9130{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

A person enters the Wall Street subway station near the New York Stock Exchange (NYSE) in New York on May 27, 2022. (Photo by Angela Weiss / AFP) (Photo by ANGELA WEISS/AFP via Getty Images)

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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

Read the latest financial and business news from Yahoo Finance

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

June 3, 2022

US stocks slide after jobs data bolster expectations of Fed tightening

US shares dropped just after the most recent batch of details on the labour marketplace confirmed using the services of continued at a sturdy pace very last thirty day period, reinforcing expectations for aggressive tightening in financial policy from the Federal Reserve.

The blue-chip S&P 500 index fell a lot more than 1 per cent when marketplaces opened in New York, with the tech-major Nasdaq Composite index off as a lot as 1.9 per cent.

The report from the labour department confirmed the world’s greatest economic system added 390,000 positions past month, modestly under the 436,000 in April. Nonetheless, the May perhaps figures nevertheless exceeded anticipations for 325,000.

Traders are trying to keep a keen eye on the point out of the positions marketplace as they assess how promptly they be expecting the Fed to increase interest fees. Policymakers have currently lifted the central bank’s principal rate by .75 percentage factors this 12 months and are anticipated to stick to up with additional intense tightening of financial policy as they endeavor to tamp down inflation. While the Fed seeks to foster maximum employment, an excessively warm work marketplace can add to inflationary pressures.

Peter Boockvar, main investment decision officer at Bleakley Advisory Group, mentioned that whilst the numbers were being not a “blowout” efficiency, they nevertheless enhance anticipations for an “aggressive Fed reaction.”

US governing administration financial debt came beneath some selling force next the careers report, with the yield on the financial plan sensitive two-12 months Treasury note increasing .05 percentage points to 2.68 per cent. The 10-yr yield, which extra intently tracks the lengthier expression financial outlook, rose .05 proportion points to 2.96 for every cent.

The two of these benchmark bond yields have jumped given that the start out of the year but have receded from their the latest highs.

In equities, shares in Tesla fell about 5 per cent at the open after Reuters reported that Elon Musk instructed staff members he had a “super terrible feeling” about the economic climate and that the automaker may well want to slash about 10 per cent of its workforce.

In the meantime, the regional Stoxx Europe 600 gauge gave up previously gains, inching decreased for the day, getting closed the earlier session .6 for each cent larger. Germany’s Dax also eased pursuing the US open. United kingdom marketplaces were shut for a public holiday getaway, as have been markets in Hong Kong and mainland China.

European shares commenced heading lower after April eurozone retail sales fell 1.3 for each cent from a thirty day period before, the 1st month to month fall because the commence of the year. On a calendar year-on-calendar year basis, product sales rose 3.9 per cent. Economists polled by Reuters had expected a .3 per cent month to month increase and a 5.4 per cent yearly enhance.

Analysts at ING mentioned weak consumer self-confidence and higher inflation had weighed on the region’s economy. “While this drop might overstate full consumption developments, it does provide more proof of a serious eurozone slowdown,” they wrote.

The retail gross sales determine followed on from more robust than envisioned economic info from Germany, with the country’s exports increasing 4.4 for each cent involving March and April.

Brent crude rose close to $118 a barrel. Opec and its allies on Thursday attained an arrangement to accelerate oil manufacturing in July and August. The greenback index, which measures the US forex towards a basket of six others, moved .2 for every cent higher.

June 1, 2022

Asian Stocks Mixed, Oil Prices Shoot Past $115 | Business News

Asian Stocks Mixed, Oil Prices Shoot Past 5 | Business News

By ELAINE KURTENBACH, AP Organization Writer

Asian shares were mixed Tuesday following experiences showed China’s producing slowdown is moderating as anti-virus curbs on corporations in Shanghai and Beijing simplicity.

U.S. futures edged better immediately after marketplaces were being closed in New York on Monday for Memorial Day. European shares superior on Monday.

Oil rates were being investing above $115 for each barrel following an arrangement by European Union leaders to embargo most Russian oil imports into the bloc by the finish of conclude of the 12 months.

The pact, portion of new sanctions on Moscow, was labored out at a summit concentrated on serving to Ukraine with a long-delayed bundle of new money assist. The The embargo handles Russian oil brought in by sea, permitting a short term exemption for imports shipped by pipeline. That was vital to carry landlocked Hungary on board a choice that required consensus.

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Benchmark U.S. crude oil attained $2.77 to $117.84 per barrel in digital buying and selling on the New York Mercantile Trade. It included 98 cents to $115.07 for each barrel on Monday.

Brent crude, utilized as the basis for pricing for worldwide buying and selling, innovative 76 cents to $118.38 for each barrel.

China’s easing of anti-virus curbs on enterprises in Shanghai and Beijing has raised hopes for more powerful growth in the world’s second-premier economic climate.

An official survey of showed manufacturing facility activity buying up in May even though nevertheless below the amount of 50 indicating growth on a scale up to 100. The main production buying managers index, or PMI rose to 49.6 from 47.4 in April.

“The PMIs possibly understate the scale of restoration this thirty day period specified that the surveys typically took position prior to when most restrictions in Shanghai had been calm,” Sheana Yue of Cash Economics stated in a report. “We suspect that the tricky info thanks about the coming weeks will expose a more powerful restoration.”

A lot more factories, stores and other firms are staying authorized to reopen this 7 days in Shanghai and in the Chinese capital, Beijing, right after authorities declared outbreaks less than handle. The Shanghai town federal government promised lease and tax cuts, more rapidly approvals for building assignments and much more subsidies for electrical vehicle purchases.

The Shanghai Composite index received .2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 3,154.44 and Hong Kong’s Hold Seng edged .1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} bigger, to 21,144.72.

Tokyo’s Nikkei 225 was .1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} greater at 27,404.14, though the Kospi in Seoul acquired .1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 2,672.33.

Australia’s S&P/ASX 200 lost .2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 7,268.80. Shares also fell in Taiwan.

The potential for Wall Street’s S&P 500 index was .3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} better just after the benchmark on Friday finished up 6.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for the week following surging inflation declined.

The future for the Dow Jones Industrial Normal foreseeable future rose .1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

Traders had been relieved after Commerce Division details confirmed U.S. inflation, which has prompted the Federal Reserve to increase fascination premiums, decelerated to 6.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over a calendar year before in April, its first decrease in 17 months.

But worries remain above no matter whether the Fed can regulate inflation that is managing at a 4-10 years substantial without having tipping the largest international economic system into economic downturn.

Crude oil rates are up 60{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} this calendar year due to fears about disruptions in supplies from Russia, the 2nd-greatest world wide exporter. Wheat costs are up about 50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and corn rates are up 30{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

The dollar rose to 128.09 Japanese yen from 127.55 yen late Monday. The euro fell to $1.0747 from $1.0778.

June 1, 2022

Stocks advance in upbeat start to June trading

U.S stocks jumped early Wednesday as Wall Street entered a fresh month of trading.

The S&P 500 climbed 0.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, while the Dow Jones Industrial Average gained 260 points, or 0.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The Nasdaq Composite rose 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

An upbeat earnings report from Salesforce (CRM) late Tuesday gave sentiment a boost after the software company raised its profit forecast and said it did not see any significant impact on operations from macroeconomic uncertainty.

The outlook comes in contrast with some downbeat quarterly results from some corporate peers that signaled struggles with rising costs and supply chain imbalances ahead. Shares of Salesforce surged as much as 12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} at the open.

“We’re just not seeing material impact on the broader economic world that all of you are in,” Salesforce Chief Executive Officer Marc Benioff said in an earnings call.

In a meeting with Federal Reserve Chair Jerome Powell on Tuesday, President Joe Biden discussed inflation — a “top economic priority” of his administration — while shifting responsibility to the central bank and emphasizing its independence. The meeting followed a Wall Street Journal op-ed by Biden underscoring his focus on taming soaring prices.

“At the end of the day, inflation is the biggest political challenge that is out there,” John Hancock Investment Management Co-Chief Investment Strategist Matthew Miskin told Yahoo Finance Live on Tuesday. “To bring down inflation, [the Fed has] got to bring down the economy.”

June also marks the beginning of the Federal Reserve process to begin shrinking its $8.9 trillion balance sheet. The central bank is also expected to raise interest rates by another 50 basis points when officials meet for their next policy-setting meeting later this month.

Wednesday’s early moves follow an eventful May on Wall Street marked by worries of a recession, decades-high inflation levels and rising interest rates.

Despite a month of sharp gyrations in equity markets, the S&P 500 churned out a small gain of less than 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} – even after seven consecutive weeks of losses briefly dragged the index into bear market territory. The Dow Jones Industrial Average also closed slightly up for May, while the Nasdaq Composite deepened losses for the month amid a continued rotation out of technology stocks.

In the past decade, the month of June has returned an average 1.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, ranking it the fourth best month of the year, according to data from LPL Financial. Over the past 20 years, however, the month has been weak, with only September worse for stocks.

“June has something for everyone, as it is no doubt a very weak month historically, but the past decade it has been strong,” LPL Financial Chief Market Strategist Ryan Detrick said in a note. “Still, after the big bounce in late May, we wouldn’t be surprised at all if this recent strength continued into a potential summer rally.”

Bespoke Investment Group pointed out in a note Tuesday that summer months have historically seen weaker stock market returns relative to winter and early spring. According to data from the firm, the Dow Jones Industrial Average has averaged a gain of 0.47{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in June over the last century, but has been a “coin flip” for positive returns during the month, logging gains only 52{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of the time.

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9:33 a.m. ET: Wall Street kicks off June with gains after closing out volatile month

Here’s where the major indexes were trading at the start of Wednesday’s session:

S&P 500 (^GSPC): +24.02 (+0.58{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,156.17
Dow (^DJI): +239.63 (+0.73{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,229.75
Nasdaq (^IXIC): +93.71 (+0.78{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 12,175.10
Crude (CL=F): +$2.02 (+1.76{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $116.69 a barrel
Gold (GC=F): +$1.00 (+0.05{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,849.40 per ounce
10-year Treasury (^TNX): -0.2 bps to yield 2.8420{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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7:22 a.m. ET: Futures struggle for direction as investors gear up for June trading

Here were the main moves in early trading Wednesday after Wall Street closed out a volatile month:

S&P 500 futures (ES=F): +6.25 (+0.15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,137.50
Dow futures (YM=F): +132.00 (+0.40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,103.00
Nasdaq futures (NQ=F): -1.25 (-0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 12,645.25
Crude (CL=F): +$1.38 (+1.20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $116.05
Gold (GC=F): -$14.70 (-0.80{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,833.70 per ounce
10-year Treasury (^TNX): +10.1 bps to yield 2.8440{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

NEW YORK, NEW YORK - MAY 25: Traders participate in a moment of silence at the start of the trading day for the victims of the school shooting in Texas on the floor of the New York Stock Exchange (NYSE) on May 25, 2022 in New York City. At least 21 people were killed, including nineteen children. (Photo by Spencer Platt/Getty Images) — NEW YORK, NEW YORK – MAY 25: Traders participate in a moment of silence at the start of the trading day for the victims of the school shooting in Texas on the floor of the New York Stock Exchange (NYSE) on May 25, 2022 in New York City. At least 21 people were killed, including nineteen children. (Photo by Spencer Platt/Getty Images)

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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

Read the latest financial and business news from Yahoo Finance

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May 30, 2022

Asian Stocks Mixed After Fed Confirms Rate Hike Plans | Business News

By JOE McDONALD, AP Business enterprise Author

BEIJING (AP) — Asian stock markets have been combined Thursday just after notes from the Federal Reserve’s hottest meeting confirmed expectations for more fascination fee hikes but contained no surprises to rattle traders.

Benchmarks in Hong Kong and Sydney declined even though Tokyo, Shanghai and Seoul have been better. Oil costs also sophisticated.

Traders are uneasy more than the effect of fascination level hikes in the United States and other Western economies to awesome surging inflation. Wednesday’s Fed release confirmed board users assistance .5-proportion-stage hikes at their future two meetings. That will weigh on economic activity but now was factored into stock costs.

There ended up no “hawkish or dovish surprises” or mention of a bigger raise, claimed Anderson Alves of ActivTrades in a report.

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The Shanghai Composite Index rose .4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 3,111.17 and the Nikkei 225 in Tokyo highly developed considerably less than .1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 26,689.00. The Cling Seng in Hong Kong shed .6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 20,053.50.

The Kospi in Seoul obtained .5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 2,630.34 when Sydney’s S&P-ASX 200 sank .4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 7,126.20. New Zealand and Singapore rose while Bangkok retreated.

On Wall Avenue, the benchmark S&P 500 index rose .9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 3,978.73. The Dow Dow Jones Industrial Regular acquired .6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 32,120.28. The Nasdaq composite climbed 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 11,434.74.

The minutes from the Fed meeting this thirty day period clearly show most board associates agreed that 50 percent-place boosts to the Fed’s benchmark shorter-phrase amount “would probably be appropriate.” That would be double the typical margin of increases.

Traders also are fearful about the effect of Russia’s February invasion of Ukraine and an unexpectedly sharp Chinese financial slowdown.

They hope the Fed will be ready to interesting inflation that is working at a four-ten years higher without tipping the biggest worldwide financial system into economic downturn.

The Fed lifted its essential curiosity rate by .5 share points at its May well assembly in its most aggressive shift in two many years. It indicated additional hikes have been to come.

The S&P 500 is coming off of a 7-7 days series of declines that arrived close to ending the bull marketplace for stocks that started in March 2020.

In power markets, benchmark U.S. crude additional 58 cents to $110.91 for every barrel in electronic buying and selling on the New York Mercantile Exchange. It rose 56 cents the preceding session to $110.33. Brent crude, the price tag basis for global oils, gained 44 cents to $111.56 for every barrel in London. It advanced 47 cents the past session to $114.13 a barrel.

The greenback edged up to 127.36 yen from 127.32 yen. The euro gained to $1.0698 from $1.0688.

May 28, 2022

Stocks surge as relief rally gains steam on upbeat earnings

U.S. stocks ended sharply higher Thursday after a comeback from recent selling gained momentum and placed markets on track to snap a 7-week losing streak.

The S&P 500 surged 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, and the Dow Jones Industrial Average gained 518 points, or 1.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The Nasdaq Composite jumped 2.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} as the index attempts to claw its way out of bear market territory.

Strong retail earnings Thursday morning spurred markets early in the session, with Macy’s (M) rising as much as 18{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in intraday trading after the retail giant raised its profit outlook in an upside surprise to investors weighing a slew of downward forecast revisions from peers. Shares of discount retailers Dollar Tree (DLTR) and Dollar General (DG) were also up more than 21{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after both companies raised forecasts on Thursday.

Boosted by the string of better-than-expected results, the S&P 500 Consumer Discretionary Index rose as much as 5.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in its best day since April 2020 as optimism on the health of the consumer at least temporarily returned.

“Today’s relief rally is a signal to investors that despite the inflation headwinds that many companies are facing, consumers still have the wherewithal to spend,” Allianz Investment Management Senior Investment Strategist Charley Ripley said in a note. “The overall economy is still underpinned by a very strong labor market and while challenges to margins have emerged for some big-box retailers, there are other signals in the economy that show consumers still have the ability to spend. Overall, markets were hovering near oversold territory and today’s rally was a result of walking back some of the recent recession fears.

LPL Financial Chief Equity Strategist Quincy Krosby also pointed out in a note that news of Broadcom’s (AVGO) deal to buy cloud computing VMware (VMW) for nearly $61 billion helped buoy investor sentiment, offering a “glimmer of the return of deals.”

“The purchase, indeed a large one, especially during a significant downdraft in the technology sector, suggests that value is being created as the market re-calibrates its valuation while the Federal Reserve raises interest rates and begins the taper of its balance sheet,” Krosby said.

The moves in markets Thursday build on a reprieve for equities, which closed higher Wednesday amid a streak of day-to day gyrations. In the first 100 trading days of the year, however, the S&P 500 was down 16.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, marking its worst start to the year since 1970 and fourth worst start to a year in history, per data from LPL Financial.

Investors also digested a bevy of economic releases Thursday morning, including a revised estimate on U.S. GDP that showed economic activity fell at a 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} annualized rate in the first three months of 2022, upwardly revised from an initial estimate of 1.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Bloomberg economists had anticipated the second reading to come in at 1.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Meanwhile, applications for unemployment insurance ticked back down in the latest weekly data to 210,000 in the week ended May 21.

Last week, several retailers, including Walmart Inc. (WMT), slashed their outlooks and warned inflation was likely to weigh on profits.

Chip designer Nvidia Corp. (NVDA) was the latest in a growing list of companies reporting weaker second-quarter forecasts and alluding to economic constraints ahead. The company’s stock fell in extended trading Wednesday after Nvidia warned current-quarter revenue was likely to come in $500 million lower due to headwinds from Russia’s war in Ukraine and COVID lockdowns in China. Nvidia shares pared these losses early Thursday, rising 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} about a half hour into the trading session.

Software company Snowflake (SNOW) also cut its forecast late Wednesday, and shares of the company were down as much as 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in early trading on Thursday.

Recent trading sessions have seen sharp drawdowns in some big-name stocks after earnings reports that affirmed investor worries about the impact of inflation on corporate margins. Earlier this week social media giant Snap Inc. (SNAP) tumbled 43{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in its biggest-one day drop on record, spurring a sell-off of other digital ad-dependent stocks that dragged the Nasdaq down to its lowest close since November 2020.

Last week, the downswing occurred in retail after Walmart and Target (TGT) set off the recent trend of dramatic pullbacks in individual names following weaker earnings forecasts. According to data from FactSet, S&P 500 companies reporting results for the first quarter have seen the largest negative price reaction to positive earnings per share surprises since 2011.

“Whether it’s today or tomorrow, it does feel like we’re starting to digest what is a seemingly large amount of bad news,” Acorns Chief Investment Officer Seth Wunder told Yahoo Finance Live on Wednesday. “The key thing is to get data that eases some of the pressure off of the Federal Reserve.”

The pickup in disappointing guidance has kept Wall Street on edge for signs the central bank’s interest rate hiking plans will be effective in bringing prices back down to healthier levels. Minutes released Wednesday from the Fed’s May policy-setting meeting indicated the majority of officials were strongly committed to rate hikes of 50 basis points at each of the next two meetings in June and July. So far this year, policymakers bumped short-term borrowing costs by 50 basis points earlier this month and 25 basis points in April.

“Though market participants have feared this stance, it should be noted that the Fed has in excess of $100 billion is securities maturing on its balance sheet coming up, so the resulting asset purchases can help negate growth concerns this summer,” Comerica Wealth Management Chief Investment Officer John Lynch said in an emailed note. “It’s actually a perfect time for the Fed to raise aggressively and send a message to markets that they’re serious about inflation without sending growth into a tailspin.”

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4:00 p.m. ET: Stocks jump as markets look to cap weeks-long losing streak

Here’s where stocks capped Thursday’s trading session:

S&P 500 (^GSPC): +79.21 (+1.99{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,057.94
Dow (^DJI): +518.16 (+1.61{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 32,638.44
Nasdaq (^IXIC): +305.91 (+2.68{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 11,740.65
Crude (CL=F): +$3.72 (+3.37{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $114.05 a barrel
Gold (GC=F): +$4.60 (+0.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,850.90 per ounce
10-year Treasury (^TNX): +0.7 bps to yield 2.7560{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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12:56 p.m. ET: S&P 500, Dow, and Nasdaq rally amid string of positive earnings reports

Here were the main moves in markets as of 12:56 p.m. ET:

S&P 500 (^GSPC): +88.13 (+2.22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,066.86
Dow (^DJI): +588.88 (+1.83{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 32,709.16
Nasdaq (^IXIC): +337.94 (+2.96{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 11,772.68
Crude (CL=F): +$4.22 (+3.82{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $114.55 a barrel
Gold (GC=F): -$2.40 (-0.13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,843.90 per ounce
10-year Treasury (^TNX): +3.6 bps to yield 2.7850{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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11:39 a.m. ET: Pending home sales fall to lowest since 2014

Pending sales of U.S. homes dropped in April for a sixth consecutive month to mark the widest decline for contract signings since 2018.

The National Association of Realtors’ Pending Home Sales Index fell 3.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} last month to 99.3, the lowest since 2014. The figure is down 9.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from the same period a year ago. The index is a gauge of houses going under contract and typically leads existing home sales by one or two months.

Economists surveyed by Bloomberg had anticipated a 2.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} drop, according to data.

“Higher mortgage rates have broken the housing market’s fever,” Comerica Chief Economist Bill Adams said in commentary Thursday. “Early this year, listings were swamped with multiple offers across much of the country, but the average rate on a 30-year conventional mortgage is up by two full percentage points since late 2021, throwing many homebuyers’ plans into disarray.”

“Some of the buyers who had to go back to the drawing board as interest rates rose will adjust, draw up more modest budgets, and return to the market,” Adams noted. “This will help home sales to stabilize later this year, but with house prices and interest rates much higher than pre-pandemic, there will simply be fewer Americans who can afford homeownership.”

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10:17 a.m. ET: Crypto under pressure as tech stocks gain

The start of Thursday’s trading session has been raucous, with the Nasdaq leading the charge up nearly 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} despite both Nvidia and Snowflake giving investors yet another downbeat forecast from former tech high-flyers last night.

Notably, however, crypto was not catching the same bid as the riskiest pockets of the market were rallying.

Bitcoin (BTC-USD) traded back below $29,000 at one point on Thursday morning, while Ethereum (ETH-USD) was down in excess of 8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, falling below $1,800 in morning trade on Thursday.

As we’re drafting this update, there’s a bit of a rebound happening in the crypto space, but this divergence between stocks and crypto — if it holds — is certainly something to watch.

—Myles Udland, senior markets editor at Yahoo Finance

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9:34 a.m. ET: Stocks open mixed as market struggles to rebound from losses

Here were the main moves in markets during the opening bell on Thursday:

S&P 500 futures (ES=F): +15.75 (+0.40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 3,992.50
Dow futures (YM=F): +134.00 (+0.42{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 32,210.00
Nasdaq futures (NQ=F): +20.00 (+17.00{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 11,962.25
Crude (CL=F): +$0.88 (+0.80{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $111.21
Gold (GC=F): -$2.60 (-0.14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,843.70 per ounce
10-year Treasury (^TNX): -1.1 bps to yield 2.7490{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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9:07 a.m. ET: US GDP contracted at slightly faster rate in the first quarter

U.S. gross domestic product fell at a 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} annualized rate in the first three months of 2022, according to a revised estimate out of Washington.

The nation’s GDP – the broadest measure of economic activity – was initially believed to logged a 1.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} contraction between January and March. The second reading came in higher than the revised contraction of 1.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} Bloomberg economists had anticipated.

In the fourth quarter, economy grew at a robust 6.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} pace. The slowdown comes amid lingering supply chain imbalances, inflation, and disruptions from war in Eastern Europe that weighed on growth.

—

8:58 a.m. ET: US jobless claims fall after climbing unexpectedly last week

Applications for unemployment insurance ticked back down in the latest weekly data, underscoring continued strength in the labor market despite higher inflation and worries of an economic slowdown.

The Labor Department’s latest weekly jobless claims report showed 210,000 claims were filed in the week ended May 21, coming in below the 215,000 economists surveyed by Bloomberg had expected. Last week, filings unexpectedly climbed to 218,000, the highest level since January.

Weekly claims continued to hover near a multi-decade low. However, several retailers, including Walmart Inc. (WMT), have recently slashed their outlooks and warned inflation was likely to weigh on profits, raising concerns among market participants that layoffs could be underway.

“Major retailers are reporting margin pressure and softer consumer demand as inflation erodes discretionary spending power and consumers redirect spending dollars from goods to services,” Comerica Chief Economist Bill Adams said in a recent note. “This will lead to slower job growth in the retail and e-commerce industries in the rest of 2022.”

“The stock market selloff could dampen business sentiment and make some businesses more cautious about hiring, especially businesses that are cash flow negative and rely on investors’ money to fund operations like many startups,” he added.

—

7:22 a.m. ET: Futures jump as the indexes claw back from sell-off

Here’s where stock futures were in pre-market trading Thursday:

S&P 500 futures (ES=F): +15.75 (+0.40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 3,992.50
Dow futures (YM=F): +134.00 (+0.42{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 32,210.00
Nasdaq futures (NQ=F): +20.00 (+17.00{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 11,962.25
Crude (CL=F): +$0.88 (+0.80{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $111.21
Gold (GC=F): -$2.60 (-0.14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,843.70 per ounce
10-year Treasury (^TNX): -1.1 bps to yield 2.7490{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

A person enters the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., May 19, 2022. REUTERS/Andrew Kelly

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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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