S&P 500 | Business Upturn

U.S. Markets Update for This Week: Strong bank earnings and fed rate cut hopes drive gains

Aditya Bhagchandani — Sat, 12 Oct 2024 15:55:13 +0000

The U.S. stock market experienced notable gains this week, driven largely by positive earnings reports from major banks, indicating a potentially strong earnings season. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all registered gains, buoyed by stronger-than-expected bank earnings and lower Treasury yields after inflation data suggested a further cooling of price pressures.

Key economic data showed the U.S. producer price index (PPI) remained unchanged for September, slightly below expectations, further reinforcing the possibility of the Federal Reserve continuing with its rate cuts. The consumer price index (CPI), though slightly higher than anticipated, was met with optimism as markets seem to be pricing in a 25 basis point rate cut by the Fed in November.

The Dow Jones rose 409.74 points to close at 42,863.86, and the S&P 500 gained 34.98 points to finish at 5,815.03. Meanwhile, the Nasdaq Composite climbed 60.89 points, closing at 18,342.94. This performance came amid improved sentiment around earnings growth, particularly from the banking sector, which saw JPMorgan Chase and Wells Fargo stocks rise by 4.44% and 5.61%, respectively.

However, Tesla’s stock tumbled by 8.78% after the company failed to provide concrete details at its robotaxi event, weighing on tech-heavy indices like the Nasdaq. Global markets, such as the STOXX 600, also benefited from optimism surrounding corporate earnings and China’s anticipated fiscal stimulus.

While market sentiment was broadly positive, the U.S. Treasury yields saw mixed movements, with the 10-year note yield decreasing slightly to 4.089%, while the 2-year note yield declined by 5 basis points to 3.949%. The dollar continued to strengthen, gaining against major currencies like the Japanese yen and the euro.

Oil prices saw a slight dip but managed to secure a second consecutive weekly gain, as the market balanced the effects of hurricanes on U.S. demand and concerns over potential supply disruptions due to tensions in the Middle East. Brent crude settled at $79.04 per barrel, down 0.45% for the day.

Overall, U.S. markets wrapped up the week on a positive note, driven by the banking sector’s strong earnings and steady economic data that suggest the Federal Reserve will likely maintain its path toward rate cuts. Investors remain cautious but optimistic as the earnings season unfolds and global economic challenges continue to shape the market.

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.

US markets plunge on economic fears, Futures signal potential rebound

News Desk — Tue, 06 Aug 2024 03:00:29 +0000

US stocks suffered a sharp downturn on August 5, 2024, as economic concerns rattled investors, but futures markets hinted at a possible recovery. The day’s trading was marked by Yen/USD volatility, growing recession fears, and unexpected unemployment data.

Major indices recorded significant losses:

Index	Closing Value	Change	Percentage Change
Dow Jones	38,710.39	-1,026.87	-2.58%
Nasdaq	16,208.38	-567.78	-3.38%
S&P 500	5,190.51	-156.05	-2.92%

The Yen’s fluctuation against the US dollar raised concerns about global trade imbalances, while recent economic indicators fueled speculation of a potential US recession. An unexpected rise in jobless claims further dampened market sentiment, reflecting growing unease about the economic outlook. Investors appeared particularly worried about the combination of currency volatility and labor market weakness.

However, after-hours trading painted a more optimistic picture:

Index Futures	Value	Change	Percentage Change
S&P Futures	5,287.25	+69.75	+1.34%
Dow Futures	39,162.00	+314.00	+0.81%
Nasdaq Futures	18,346.75	+333.50	+1.85%

Despite this potential turnaround, market analysts urge caution. While futures indicate a possible bounce-back, the underlying economic concerns remain significant. Analysts will be watching closely for further developments in the coming days.

Investors are advised to stay alert to upcoming economic indicators and corporate earnings reports, which could provide clearer direction for market trends. The interplay between currency markets, recession fears, and employment data will likely continue to influence market sentiment in the near term.

Pre- Market overview with Dalal street witnessing profit booking amid mixed global cues

Finance Desk — Wed, 24 Jan 2024 02:56:50 +0000

In a mixed start to the trading session, domestic equities initially opened on a positive note but soon experienced a significant sell-off driven by profit booking and varying global cues. The third-quarter earnings season is in full swing, contributing to stock-specific actions during this shortened trading week.

Pre-Market Overview:

GIFT Nifty Signals Positive Start:

GIFT Nifty (formerly SGX Nifty) traded higher by 87 points, indicating a positive start for Dalal Street at 21,277. India VIX, a gauge of market fear, rose by 7.6% to settle at 14.85 levels.

S&P 500 Records High Close:

The S&P 500 achieved a record high close on Tuesday amid a mix of early quarterly results. The index rose by 0.29%, Nasdaq gained 0.43%, and Dow experienced a 0.25% decline.

Mixed Asian Markets:

Asian stocks presented a mixed picture, with optimism in China and lower openings in Japanese markets. S&P 500 futures increased by 0.2%, Hang Seng futures rose by 2.1%, Japan’s Topix fell by 0.2%, Australia’s S&P/ASX 200 remained stable, Euro Stoxx 50 futures dropped by 0.3%, and Nasdaq 100 futures rose by 0.2%.

Dollar Strengthens:

The dollar hovered near a six-week high against major peers on Wednesday as investors cemented expectations that the Federal Reserve would be in no rush to cut interest rates in the face of a resilient U.S. economy.

FII/DII Activity:

Foreign portfolio investors divested equities amounting to Rs 3,115 crore on Tuesday, while domestic institutional investors infused Rs 214 crore.

Rupee Depreciation:

The Indian rupee depreciated by 8 paise to 83.15 against the US dollar, influenced by foreign fund outflows and subdued sentiments in the domestic equities market.

Bullish market expected ahead: Tech surge propels S&P 500 to two-year high

Finance Desk — Sat, 20 Jan 2024 02:41:27 +0000

In a significant market development, a surge in tech shares played a pivotal role in propelling the S&P 500 to its first record high close in two years, solidifying a bullish trend. Concurrently, European stocks faced weekly declines, with expectations for central bank interest rate cuts diminishing.

Upcoming Trading Sessions:

Saturday will be a full regular trading session on January 20 (Saturday), operating from 9:15 am to 3:30 pm. However, it’s important to note that Indian equity markets are scheduled to remain closed on January 22 (Monday).

The recent upswing fueled by technology in the S&P 500, alongside the weekly market shifts in European stocks are expected to drive the Indian stock market towards a bullish trend ahead

US markets are inching down as investors await earnings reports from various companies

Aryan Jakhar — Tue, 10 Jan 2023 17:16:51 +0000

Wall Street stocks were slightly down on Tuesday amid volatile trading ahead of this week’s crucial inflation and earnings reports.

As of 10:36 AM Eastern time, the S&P 500 was down 0.2%. The decline of 60 points (0.2%) brought the Dow Jones Industrial Average down to 33,450. As a result, the Nasdaq index dropped 0.2%.

Health care equities surged as technology sank.

Despite the Federal Reserve’s strong efforts to combat the persistently rising prices of food, clothes, and other necessities, inflation continues to be a top concern on Wall Street. As a result, investors have been keeping a careful eye on economic statistics and company updates.

The market’s next major milestone will be Thursday’s data on consumer price inflation. Economists anticipate that it will indicate that inflation fell to 6.5% in December, down from 7.1% in November.

To add to the excitement, investors are looking forward to the latest corporate earnings reports. The latest information from stores has only bolstered worries about declining sales as consumers feel the effects of rising prices and a lack of purchasing power. Macy’s isn’t the first company to issue a profit warning for the fourth quarter and beyond, with several more following suit in 2023.

Coinbase, a cryptocurrency exchange, said recently that it will be laying off 20% of its staff, marking the latest in a string of job losses in the technology sector. Gains of 3% were seen in the stock price.

On Friday, a number of major financial institutions, including Bank of America and JPMorgan Chase, will release their quarterly earnings reports. On Friday, other businesses, including Delta Air Lines and UnitedHealth Group, will also reveal their financials. For the first time since 2020, analysts predict that S&P 500 businesses’ profits per share will fall from the previous year.

There was an increase in bond yields. The 10-year Treasury yield, a major factor in home loan rates, increased to 3.60% from 3.53%.

Overnight, European stocks fell as Asian markets ended with a mixed bag. Oil prices have increased.

US Stocks: S&P 500, Nasdaq climb over 1% amid signs of easing geopolitical tensions

News Desk — Thu, 26 May 2022 18:33:00 +0000

US stock indexes have climbed up on Thursday after upbeat annual forecasts from several retailers. Also, the data confirmed the US economy has contracted in the first quarter. Thus, easing concerns about aggressive interest rate hikes.

All of the 11 major S&P sectors advanced in early trading with consumer discretionary up 3%. Which was followed by a 1.7% rise in the financials sector.

Macy’s Inc jumped 12.1% after the department store showed its annual profit forecast. As party-wear is in demand after the certain easing of curbs which were imposed during the COVID-19 pandemic.

Dollar General Corp and Dollar Tree have gained 13.2% and 17.8% respectively. Thus, predicting their annual sales forecasts. As data show more Americans turn to discount stores due to the rise in inflation rate.

Whereas, the Commerce Department’s report showed U.S. gross domestic product has been down at a 1.5% annualized rate last quarter, revised down from the 1.4% declined in April.

The economy grew with a lot of resistance to upper circuit 6.9% pace in the fourth quarter. In another scenario weekly jobless claims fell to 210,000 last week, consistent with a tight labor market despite rising interest rates and tightening financial liquidity.

Thomas Hayes, chairman of Great Hill Capital said. ‘These numbers are indicative that growth is slowing. Demand is slowing and maybe prices are even starting to slow. And if all those three things are in place, then the case for a dovish pivot will build over the summer months,”.

The reality is a lot more complicated at this juncture and so we will have these counter trend rallies in any bear market environment”. Said Hans Olsen, chief investment officer of Fiduciary Trust Company.

S&P and Dow close low, fear of Coronavirus increases

Sanah Shah — Sat, 23 Jan 2021 05:48:43 +0000

The Dow Industrials and S&P 500 ended soberly low on Friday 22nd January 2021, brought down by losses in blue-chip technology loyalists Intel and IBM following their quarterly results, and economic reopening is expected in the upcoming months.

IBM Corp fell by 9.91% and was the top drag on the Dow Jones Industrial Average. It missed estimates for quarterly revenue, wounded by an unusual sales slump in their software unit.

Intel Corp declined by 9.29% as Pat Gelsinger, new Chief Executive Officer through his post-earnings comment implied that there was a void of the strong embrace of outsourcing.

On the other hand, losses in the tech sector were balanced by profits from Microsoft Corp and Apple Inc which kept the declines on the main U.S. stock indexes in check and lifting the Nasdaq moderately.

Among the 11 S&P sectors, the worst performers were energy and financials on 22nd January 2021. In comparison, the defensive utilities and real estate groups were ahead.

Andrew Mies, chief investment officer at 6 Meridien in Wichita Kansas, said, “Any delay or setback in the reopening theme is probably going to be a headwind for the energy sector. (But) the market is telling you that its confidence in the cyclical is diminished now.

The S&P 500 and the Nasdaq cut some losses soon after the opening bell as data suggested U.S. manufacturing activity shockingly increased to its highest level in more than 13-1/2-years at the beginning of January, juxtaposed to a discouraging result in the purchasing manager data in Europe earlier.

The Dow Jones Industrial Average declined by 179.03 points, or 0.57%, to 30,996.98, the S&P 500 fell by 11.6 points, or 0.30%, to 3,841.47 and the Nasdaq Composite gained 12,15 points, or 0.09%, to 13,543.06.

Volume on the U.S. exchanges was 12.79 shares, in comparison to the 12.68 billion average for the entire season over the past 20 trading days.

Despite the deficiency, the three major indexes scored weekly gains, with the tech-oriented Nasdaq tracking for its best weekly performance since 6th November 2021 as investors rushed into Alphabet Inc, Apple Inc and Amazon.con Inc, forecasting their earnings reports in the coming weeks.

For the week 18-22 January, S&P increased by 1.94%, the Dow rose by 0.59% and the Nasdaq unofficially rose by 4.19%.

Stock evaluations are coming close to levels that haven’t been witnessed since the Dotcom era. In light of this, some market members said new COVID-19 mutations, variants and hiccups in vaccine rollouts present near-term risks.

U.S. President Joe Biden said the economic crisis in the country was worsening and that the government needs to take immediate and major action to help Americans fighting to survive.

Mies regarding the control of COVID-19 and the reopening of the economy, commented, “The absolute assurance that investors felt a week ago… some of that is starting to fade out of the market.”

The Senate Finance Committee unanimously approved Janet Yellen’s nomination as the first woman Treasury secretary, implying that she will win the entire Senate’s approval.

Declining issues exceed advancing ones on the NYSE by a 1.00-to-1 ratio. On Nasdaq by a 1.53-to-1 ratio in favour of advancers.

The S&P 500 posted 16 fresh 52-week highs and no new lows. Meanwhile Nasdaq Composite reported 189 new highs and 7 new lows.

Global Markets: S&P 500, Dow crash; US jobless claim falls below 1 Million

Ruchit Purohit — Fri, 14 Aug 2020 02:40:55 +0000

The US markets fell sharply on Thursday night, S&P after testing record highs slipped back flat and Dow crashed 80 points.

The S&P 500 ended slightly lower on Thursday after briefly trading above its record closing high level for a second day, and the Dow also fell in the wake of a disappointing forecast from Cisco Systems Inc.

The Dow Jones Industrial Average fell 80.12 points, or 0.29 percent, to 27,896.72, the S&P 500 lost 6.9 points, or 0.20 percent, to 3,373.45 and the Nasdaq Composite added 29.27 points, or 0.27 percent, to 11,041.51.

Trends on SGX Nifty indicate a negative opening for the index in India with a 19 point loss. The Nifty futures were trading at 11,315 on the Singaporean Exchange around 07:30 hours IST.

Japan’s Nikkei 225 futures were up 0.06 percent after the Nikkei 225 index closed 1.78 percent higher at 23,249.61 on Thursday. Hong Kong’s Hang Seng index futures were down 0.13 percent.

(Inputs from Moneycontrol)