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April 22, 2022

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

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

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

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

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

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

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

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

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

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

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

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

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

S&P 500 (^GSPC): -65.79 (-1.48{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,393.66
Dow (^DJI): -368.03 (-1.05{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,792.76
Nasdaq (^IXIC): -278.41 (-2.07{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,174.65
Crude (CL=F): +$1.48 (+1.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $103.67 a barrel
Gold (GC=F): -$2.10 (-0.11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,953.50 per ounce
10-year Treasury (^TNX): +7.7 bps to yield 2.9170{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

S&P 500 (^GSPC): +46.97 (+1.05{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,506.42
Dow (^DJI): +289.18 (+0.82{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,449.97
Nasdaq (^IXIC): +209.64 (+1.56{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,666.46
Crude (CL=F): +$1.80 (+1.76{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $103.99
Gold (GC=F): -$6.20 (-0.32{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,949.40 per ounce
10-year Treasury (^TNX): +4.1 bps to yield 2.877{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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

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

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

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

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

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

Here’s where stocks were trading Thursday morning:

S&P 500 futures (ES=F): +38 (+0.85{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,493.50
Dow futures (YM=F): +233 (+0.66{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,312.00
Nasdaq futures (NQ=F): +170.25 (+1.22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,175.00
Crude (CL=F): +$0.98 (+0.96{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $103.17
Gold (GC=F): -$12.40 (-0.63{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,943.20 per ounce
10-year Treasury (^TNX): +3.3 bps to yield 2.869{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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

Here’s where stocks were trading Tuesday evening:

S&P 500 futures (ES=F): +14.25 (+0.32{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,469.75
Dow futures (YM=F): +74.00 (+0.21{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,153
Nasdaq futures (NQ=F): +70.25 (+0.50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,075

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

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

Read the latest financial and business news from Yahoo Finance

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

January 11, 2022

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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November 6, 2021

S&P 500 Sets Seventh Straight All-Time High on Wall Street | Business News

By DAMIAN J. TROISE and STAN CHOE, AP Small business Writers

NEW YORK (AP) — U.S. shares pushed even further into report heights on Friday subsequent an encouraging report on using the services of across the state, although buying and selling was shaky as the bond market place was strike with one more working day of sharp swings.

The S&P 500 rose 17.47, or .4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, to 4,697.53 and clinched an all-time higher for the seventh straight day. The Dow Jones Industrial Normal attained 203.72, or .6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, to 36,327.95, and the Nasdaq composite additional 31.28, or .2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, to 15,971.59.

Investing was scattershot, though, and following climbing to an early gain of .8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, the S&P 500 at a person level gave up just about all of it. Stocks retrenched in the center of the working day as Treasury yields astonishingly slumped. A measure of nervousness in the inventory market place also created a U-switch larger all over the identical time.

The 10-calendar year yield, which tends to shift with anticipations for the economic climate and inflation, dropped to 1.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and is in close proximity to its most affordable amount considering that September. It was at 1.58{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} just two days before. Analysts had varying explanations for that and other sharp moves in the bond current market, which some called counterintuitive.

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The Dow and Nasdaq however still joined the S&P 500 in environment all-time highs. The smaller stocks in the Russell 2000 done even better, leaping 1.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

An encouraging report from Pfizer aided to carry the market, specially firms that most want each day lifetime to return to typical from the pandemic. Pfizer rose 10.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} soon after it claimed its experimental capsule sharply reduce prices of hospitalization and death for COVID-19 patients. Airlines, casinos, cruise strains and are living-party companies experienced equivalent jumps.

The headline report of the day was the one from the Labor Office that showed businesses hired a internet 531,000 employees in October. That was additional than 100,000 earlier mentioned economists’ anticipations. The gains ended up prevalent across industries, and the federal government also revised increased the quantities for occupation progress in previously months.

A person potential fear spot for markets was a major soar in workers’ wages, up 4.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from a 12 months previously, which can feed into problems about inflation. But the figures ended up fairly in line with economists’ expectations.

“It was 1 of these Goldilocks studies,” said Nate Thooft, head of global asset allocation at Manulife Expense Administration. Moreover displaying more powerful-than-envisioned using the services of, “the basic fact was it wasn’t exhibiting any overheating either.”

Which is why it was stunning that the 10-12 months Treasury generate fell so sharply to 1.44{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from 1.52{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} late Thursday.

One feasible explanation was that traders see extra folks heading again to work as helping to crystal clear the supply-chain bottlenecks that have hit the economic system and driven up inflation, said Brian Jacobsen, senior investment strategist at Allspring World wide Investments. That could direct to decreased expectations for inflation, which would incorporate downward tension on Treasury yields.

“The additional folks we get back to fill open up positions will assist preserve that lack pressure at bay a very little little bit,” said Matt Stucky, senior portfolio supervisor at Northwestern Mutual Wealth Administration Co.

But the degree of moves in the bond market even now took marketplace watchers by surprise.

“Some of these moves glance extreme to me,” Allspring World-wide Investment’s Jacobsen acknowledged, citing a sharp fall for the 30-calendar year Treasury produce to 1.88{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from 1.96{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. “I really don’t consider we can justify in which yields are. It leads me to feel that this is some somewhat fast repositioning by traders in the market and not necessarily a improve in the trend.”

A working day previously, bond markets around the earth shook following the Lender of England decided not to raise desire costs. Quite a few traders experienced assumed it was just about a absolutely sure point, and the inaction despatched yields sliding.

For stocks, the trend has been solidly upward a short while ago as a parade of providers has noted more powerful income for the summer than analysts envisioned. Far more than 4 out of five businesses in the S&P 500 have topped forecasts, with approximately 90{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of reports in hand, according to FactSet. Providers in the index look on track to report 39{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} advancement in their quarterly earnings per share in excess of 12 months-back stages, which would be the third-swiftest considering the fact that 2010.

On the internet vacation organization Expedia jumped 15.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and home-sharing firm Airbnb rose 13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} right after they each individual noted much better gains than envisioned.

On the dropping finish was physical exercise products maker Peloton Interactive. It plunged 35.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} soon after turning in profit and revenue that fell small of Wall Street’s anticipations.

Health care shares were also lagging the market. Moderna slumped 16.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} as it continued to slide immediately after cutting its forecast on Thursday for vaccine deliveries in 2021.

October 13, 2021

Stocks fall for a third straight session, with inflation concerns lingering

Stocks fell on Tuesday in another choppy session, with investors eyeing elevated commodity prices and other signs of inflation heading into corporate earnings season.

The S&P 500, Dow and Nasdaq each posted a third consecutive day of declines. U.S. West Texas intermediate crude oil futures hovered near a seven-year high, with supply constraints and elevated fuel demand pushing prices higher over the past seven consecutive weeks. Outside of oil, aluminum prices also edged lower after reaching their highest level since 2008 on Monday, and copper prices turned lower after a near 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} jump.

For investors, the recent, broad rise in commodity prices has threatened to exert further pressure on corporate margins. Companies have already been grappling with a host of supply-side challenges, including port congestion and labor scarcities, that are expected to drag on profit growth heading into third-quarter earnings season later this week and over the next month. The Labor Department’s August Job Openings and Labor Turnover survey — due for release Tuesday morning — showed workplace vacancies held near a record high at the end of the summer.

And rising interest rates have also raised the specter of higher borrowing costs for companies, with the 10-year yield holding near its highest level since June.

“We’re definitely freaked out about crude oil prices … [and] about slightly higher interest rates,” David Bailin, Citi Private Bank chief investment officer, told Yahoo Finance. “But we have to put all of this in context. First of all, interest rates have been abnormally low. Energy prices are high due to excessive demand right now and delivery shortages across Europe and now in China … These things will abate. We think it’ll take somewhere between three and nine months for energy supplies and for the shipping issues to abate.”

Other strategists also suggested that investors look through the near-term supply-related challenges facing the markets.

“We’re going to have supply issues for a little bit longer here, but I think that’ll just work its way through,” Jeremy Bryan, portfolio manager for Gradient Investments, told Yahoo Finance Live on Monday. “The nice part about the U.S. economy and markets in general is they usually follow what the U.S. consumer does, and the U.S. consumer wants to spend. And that’s why we’re still positive on the markets.”

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4:10 p.m. ET: Stocks fall for third straight session: Dow drops 118 points, or 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Here were the main moves in markets as of 4:10 p.m. ET:

S&P 500 (^GSPC): -10.54 (-0.24{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,350.65
Dow (^DJI): -117.72 (-0.34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,378.34
Nasdaq (^IXIC): -20.28 (-0.14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,465.93
Crude (CL=F): +$0.01 (+0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $80.53 a barrel
Gold (GC=F): +$5.90 (+0.34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,761.60 per ounce
10-year Treasury (^TNX): -3.4 bps to yield 1.5800{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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1:04 p.m. ET: Micron shares sink after research firm predicts chip price decline this year

Shares of Micron Technology (MU) dropped by more than 4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} Tuesday afternoon, tracking toward its worst day in two months after the market research firm TrendForce said it expected DRAM memory chip prices to decline in the fourth quarter this year, in a move that would undercut sales to Micron and other major chipmakers.

Peer chipmakers also sank Tuesday afternoon following the report. Western Digital Corp. (WDC) shares fell by more than 3.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, while Texas Instruments (TXN) sank by 2.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

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11:49 a.m. ET: Elevated job openings another sign that ‘demand in America for goods and services is off the charts’: Economist

The jump in job openings in August reaffirmed the pronounced supply and demand mismatches in the labor market as the economic recovery rolls on. And coupled with two consecutive months of disappointing payroll gains, the jobs data is signaling a tighter labor market than many policymakers have acknowledged, according to at least one economist.

“We have never seen an economy in recovery from recession move this quickly from job firings to job hirings,” Chris Rupkey, FWDBonds chief economist, wrote in an email Thursday morning. “There are help-wanted posters in every shop window on Main Street, and the lack of workers is exacerbating the supply disruptions throughout the nation that is lighting a match to the fire of inflation.”

“Job openings of over ten million when the official jobless count behind the 4.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} unemployment rate of 7.674 million can only mean that demand in America for goods and services is off the charts,” he added. “Don’t ask when the economy will create more jobs because the jobs are out there and waiting for the unemployed right now.”

Still, other economists said the dip in August job openings suggested the Delta variant’s spread did at least temporarily dent demand among employers for workers.

“The slowdown in August is noteworthy, but it’s not a total reversal of fortune,” Nick Bunker, Indeed Hiring Lab director of research, wrote in an email. “The job openings rate is at a level that would have been an all-time high if not for July’s numbers. And the quits rate is over 25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} higher than its pre-pandemic level. Demand for workers remains strong and workers have plenty of options.”

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10:02 a.m. ET: Job openings pulled back slightly from record in August, while quits rate jumps to all-time high

U.S. job openings fell by a greater-than-expected margin in August but were revised up to a fresh record high for July, underscoring the widespread demand for labor across the recovering economy.

Job openings fell to 10.439 million as of the last day of August, according to the Labor Department’s latest report. In July, job openings were at 11.098 million, with this sum upwardly revised from the 10.934 million previously reported. Consensus economists were looking for job openings to total 10.954 million in August, according to Bloomberg data.

Some of the biggest decreases in job openings were in healthcare and social assistance industries, which posted a combined drop of 224,000 vacancies. Accommodation and food services job openings also fell by 178,000.

The quits rate increased to a record high of 2.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} during the month, suggesting workers had growing confidence about their abilities to find new positions. Layoffs and discharges, meanwhile, took place at a 0.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rate, which was little changed on a month-over-month basis and below a pre-pandemic average of 1.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} throughout 2019.

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

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

S&P 500 (^GSPC): +10.81 points (+0.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,372.00
Dow (^DJI): +78.98 points (+0.23{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,575.05
Nasdaq (^IXIC): +29.5 points (+0.16{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,508.83
Crude (CL=F): -$0.17 (-0.21{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $80.35 a barrel
Gold (GC=F): +$6.40 (+0.36{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,762.10 per ounce
10-year Treasury (^TNX): +2.5 bps to yield 1.612{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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9:23 a.m. ET: IMF downgrades global economic growth outlook for 2021 as virus weighs on activity

The International Monetary Fund trimmed its outlook for global economic growth in new projections released Tuesday, with the institution citing an ongoing drag from the coronavirus.

The IMF’s new forecast is for global economic activity to expand at a 5.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rate this year, down from the 6.0{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} pace seen in July. However, the IMF maintained its outlook for 4.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} growth next year.

Emerging markets and developing economics, excluding China, are largely still grappling with fallout from the virus, and as a result, growth will likely remain 5.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} below pre-pandemic forecasts in 2024, “resulting in a larger setback to improvements in their living standards,” the IMF wrote in its report. Advanced economics, however, are expected to return to pre-pandemic trends in growth beginning next year.

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7:32 a.m. ET: Stock futures point to a slightly higher open

Here’s where markets were trading Tuesday morning:

S&P 500 futures (ES=F): +4.5 points (+0.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,355.5
Dow futures (YM=F): +13 points (+0.04{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,389.00
Nasdaq futures (NQ=F): +43 points (+0.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,743.50
Crude (CL=F): +$0.45 (+0.52{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $80.94 a barrel
Gold (GC=F): +$7.70 (+0.44{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,763.40 per ounce
10-year Treasury (^TNX): +0.9 bps to yield 1.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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7:30 a.m. ET Tuesday: A record share of small business owners reported job vacancies in September: NFIB

Small business optimism fell more than expected in September compared to August, with supply chain disruptions and shortages weighing on owners’ outlooks.

The National Federation of Independent Business’s Small Business Optimism Index edged down to 99.1 for September from 100.1 during the prior month. Consensus economists were looking for the index to come in at 99.5, according to Bloomberg data.

A record share of 51{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of small business owners said they had job openings that could not be filled, according to the survey. This marked a third straight month with a fresh record high of this metric. Meanwhile, 42{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of owners said they raised compensation during the month, which was also a record high.

“Small business owners are doing their best to meet the needs of customers, but are unable to hire workers or receive the needed supplies and inventories,” NFIB Chief Economist Bill Dunkelberg said in a press statement. “The outlook for economic policy is not encouraging to owners, as lawmakers shift to talks about tax increases and additional regulations.”

In terms of inventories, more than 35{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of small business owners said supply chain disruptions were having a “significant impact” on their firms, while 32{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} reported a “moderate impact” and 21{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} said they experienced a “mild impact.”

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6:10 p.m. ET Monday: Stock futures edge lower

Here’s where markets were trading Monday evening:

S&P 500 futures (ES=F): -2.25 points (-0.05{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,348.75
Dow futures (YM=F): -12 points (-0.03{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,364.00
Nasdaq futures (NQ=F): -6.5 points (-0.04{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,694.00

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 29, 2021. REUTERS/Brendan McDermid

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