Tag Archives: Breaking News: Markets

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Stocks climb after Wall Street rallies, Singapore GDP

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An employee works at the Tokyo Stock Exchange in Tokyo, Japan, on Jan. 13, 2022.

Toru Hanai | Bloomberg | Getty Images

Shares in the Asia-Pacific jumped on Friday, taking the lead from Wall Street overnight as investors shook off a strong inflation report.

The Nikkei 225 in Japan was 3.46% higher, while the Topix gained 2.69%. Japan’s yen plunged to its lowest levels against the U.S. dollar since 1990 overnight before paring losses, and is still trading at 147-levels.

The Hang Seng index in Hong Kong gained 3.37%, with the Hang Seng Tech index gaining 3.94%. In mainland China, the Shanghai Composite was up 1.57% and the Shenzhen Component rose 2.12%.

In Australia, the S&P/ASX 200 gained 1.91%. South Korea’s Kospi advanced 2.53% and the Kosdaq climbed 4.28%. MSCI’s broadest index of Asia-Pacific shares outside Japan was 2.69% higher.

Singapore’s GDP grew 4.4% in the third quarter and is expected to further tighten its monetary policy.

In the U.S., inflation data showed consumer prices increased more than expected in September, with CPI rising 0.4% from August, and 8.2% from September last year. Core inflation accelerated even faster in September.

Stocks had a volatile session but ultimately rebounded to close higher, with each major index gaining more than 2%. The Dow Jones Industrial Average soared 1,500 points from its lows to the highest level on Thursday in the U.S.

“Equity investors seemingly decided that a stronger U.S. inflation [report] today still doesn’t negate expectations of a sharp declines in prices ahead,” Rodrigo Catril, currency strategist at National Australia Bank, wrote in a note Friday. He added that the rally could have been a result of short-covering.

— CNBC’s Jeff Cox, Carmen Reinicke and Alex Harring contributed to this report.

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Delta, Walgreens, Applied Materials and others

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Check out the companies making headlines before the bell:

Delta Air Lines (DAL) – The airline’s stock rose 3.9% in the premarket on the strength of an upbeat current-quarter forecast as travel demand continues to rebound. For its most recent quarter, Delta earned an adjusted $1.51 per share, a number that was 2 cents below consensus but included a 3-cent impact from the effects of Hurricane Ian.

Walgreens (WBA) – Walgreens rallied 6.8% in the premarket after the drugstore operator reported better-than-expected quarterly profit and revenue. The company also raised its long-term sales targets.

Applied Materials (AMAT) – Applied Materials lowered its current-quarter revenue outlook, with the chip manufacturing equipment maker saying it would be negatively impacted by new U.S. regulations restricting exports to China. Applied Materials lost 2% in premarket action.

Victoria’s Secret (VSCO) – Victoria’s Secret gained 3.1% in premarket trading after the lingerie maker said current quarter sales and profit would come in at the high end of prior forecasts. The upbeat forecast comes ahead of a meeting with analysts and investors scheduled for Thursday.

Digital World Acquisition (DWAC) – Digital World Acquisition surged 11.2% in the premarket after Google approved Truth Social – the social media platform backed by former President Donald Trump – for inclusion in its app store. Digital World is the special purpose acquisition company that plans to merge with Truth Social and take it public, though shareholders have yet to approve the merger.

Dish Network (DISH) – Dish gained 1% in premarket action after blank-check firm CONX Corp. said it was in talks to buy Dish’s retail wireless unit Boost Mobile. CONX is backed by Dish Network chairman Charles Ergen.

Taiwan Semiconductor (TSM) – Taiwan Semi rose 2.3% in the premarket after the chip maker reported an 80% jump in quarterly profit and on reports that the U.S. granted Taiwan Semi a one-year license to continue ordering U.S. equipment for use in China.

Kohl’s (KSS) – Kohl’s gained 2.2% in premarket trading following a Wall Street Journal report that activist investor Macellum Advisors is warning the retailer that another proxy battle could be ahead. Macellum is said to be calling for the replacement of at least three directors after talks to sell the retailer earlier this year collapsed.

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Stock futures are up as investors await inflation data

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Traders work on the floor of the New York Stock Exchange (NYSE) in New York.

Brendan McDermid | Reuters

Stock futures rose slightly early on Thursday as investors look ahead to inflation data and earnings in the coming days that may provide insight into the future health of the economy.

Futures for the Dow Jones Industrial Average were up 32 points, or 0.11%. S&P 500 futures added 0.13%, while futures tied to the Nasdaq increased 0.07%.

The action follows a day of small ups and downs for the market as investors digested minutes from the September Federal Reserve meeting. The minutes showed the central bank expected to keep hiking interest rates until it sees receding inflation. But one comment made some think the Fed might instead slow the rate hikes, if not roll them back, if financial markets tumult continued.

The S&P 500 fell 0.33% to close at 3,577.03. The Nasdaq Composite dropped 0.09% to 10,417.10. The Dow Jones slipped 0.10%, or 28.34 points, to close at 29,210.85.

“Fed speakers similarly have, since the last meeting, been wedded to the message that their commitment remains solid, even in the face of global financial fault lines showing signs of strain,” said Quincy Krosby, chief global strategist at LPL Financial.

Early in the day, the September producer price index, a gauge of inflation that looks at final-demand wholesale prices, beat expectations. It rose 0.4% in September, more than Dow Jones’ consensus estimate of 0.2%.

Investors have more data to weigh Thursday as the consumer price index comes in the morning. Dow Jones’ consensus estimates show the CPI rose 0.3% in September, up from 0.1% in August. That would bring inflation’s annual pace to 8.1% from 8.3%.

Despite what she called a lukewarm response to PPI data and the Fed’s meeting minutes, Krosby said markets could be tested if the CPI print is higher than expected, particularly in bond yields.

Household names including Delta Air Lines, Walgreens and Domino’s Pizza will report earnings before the bell Thursday, coming as part of a week considered the start to a new corporate earnings season.

Weekly jobless claims data will also be released Thursday morning.

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Stocks rise as investors look ahead to key consumer inflation data

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Stocks rose Wednesday as investors shook off inflation data that came in higher than expected and looked ahead to a key consumer report that will inform the pace of the Federal Reserve’s rate hikes going forward.

The Dow Jones Industrial Average gained 169 points, or 0.58%. The S&P 500 rose 0.28%, bolstered by a 10% jump in shares of Moderna, the top gaining stock in the index. The Nasdaq Composite ticked up 0.12%.

Stocks whiplashed between gains and losses earlier in the morning when the September producer price index, a gauge of final-demand wholesale prices, came in higher than expected. The print was up 0.4% in September, more than the consensus estimate of a 0.2% increase, according to Dow Jones.

The PPI number is one of the inflation gauges investors are watching alongside the Federal Reserve. If inflation stays high, the central bank is more likely to continue its aggressive path of interest rate hikes to bring it back into check. That means rates will continue to rise and may stay high for longer than markets expect, weighing on stocks.

Investors will get more inflation data on Thursday, when the September consumer price index report is released. The CPI number is a measure of price changes in a basket of common consumer goods and services.

“Prices remain elevated so it shouldn’t be a surprise to see producer goods and services rise. Keep in mind the increase is still below what we were seeing consistently month after month earlier this year,” said Mike Loewengart, head of model portfolio construction at Morgan Stanley Global Investment Office. “No doubt the Fed still has its work cut out for them, and if tomorrow’s CPI read is hot, don’t be surprised to see some investors come to grips with how long the road to tamer inflation may be.”

The minutes from the Federal Reserve’s September meeting will also be released Wednesday. While Fed Chairman Jerome Powell has acknowledged that aggressive interest rate increases could be painful, the central bank will continue to charge forward in its fight to lower inflation.

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Bond yields higher following market slumps, job data

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U.S. Treasury yields traded higher on Tuesday as investors digested Monday’s market retreat and the previous week’s data releases that will guide the Federal Reserve’s policymaking.

The yield on the benchmark 10-year Treasury note rose 6 basis points, trading at 3.9531% at around 5:30 a.m. ET. The yield on the 30-year Treasury bond climbed 7 basis points to 3.9173%. Yields move inversely to prices, and a basis point is equal to 0.01%.

The yield on the 2-year Treasury, the part of the curve most sensitive to Fed policy, was up by 2 basis points to 4.3329%.

The retreat from U.S. bonds appears to be picking up pace as commercial banks, pension funds and foreign governments step away, and the Fed increases the pace at which it plans to sell treasuries from its balance sheet. U.K. bonds are also seeing a dramatic slump as the Bank of England’s emergency move to purchase more gilts failed to calm markets.

Investors will be looking out for the data release on the NFIB (National Federation of Independent Business) Small Business Optimism Index on Tuesday, after the previous week’s release showed an unexpected decline in job openings, slower job growth than forecast and a lower-than-predicted unemployment rate.

The previously released data suggested a continued path of rate hiking for the Fed, which has contributed to recent days’ slides in the stock market.

The New York Fed will release its Survey of Consumer Expectations, which provides a look into consumer’s expectations for overall inflation and prices of food, housing and energy, as well as outlooks on earnings and jobs.

13-week and 26-week bonds are also due for auction Tuesday.

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Taiwan stocks down more than 4% in mixed Asia trade as TSMC plunges 8%

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Pedestrians cross a street in front of the Tokyo Stock Exchange, operated by Japan Exchange Group, in Tokyo, Japan.

Toru Hanai | Bloomberg | Getty Images

Shares in the Asia-Pacific were mixed on Tuesday, while Taiwan’s benchmark index dropped more than 4% on its return to trade after a holiday, as investors weighed the impact of new U.S. rules on chipmaker TSMC.

Japan and South Korea’s markets also resumed trading after a holiday on Monday. The Nikkei 225 fell 2.6% and the Topix lost 1.9%. In South Korea, the Kospi fell 2.35% and the Kosdaq shed 4.3%.

Hong Kong’s Hang Seng index fell 1.56% and the Hang Seng Tech index dropped 2.96%. In Australia, the S&P/ASX 200 gave up earlier gains and was about flat.

The Shanghai Composite in mainland China gained 0.4% and the Shenzhen Component rose 0.876%. MSCI’s broadest index of Asia-Pacific shares outside Japan fell nearly 2%.

“Equities continue to sell off as the impact of tighter monetary policy spooks investors,” ANZ Research analysts wrote in a note Tuesday.

Overnight on Wall Street, the Nasdaq Composite closed at its lowest since July 2020, down 1.04% at 10,542.10, dragged lower by a slump in semiconductor stocks.

The S&P 500 also slipped 0.75% to 3,612.39, while the Dow Jones Industrial Average shed 93.91 points, or 0.32%, to close at 29,202.88.

— CNBC’s Carmen Reinicke and Alex Harring contributed to this report.

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Stock futures are little changed after the Nasdaq Composite closes at a 2-year low

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Traders on the floor of the NYSE, Aug. 8, 2022.

Source: NYSE

U.S. stock futures were little changed on Monday night after the Nasdaq Composite closed at its lowest in two years during the regular session.

Dow Jones Industrial Average futures rose by 20 points, or 0.07%. S&P 500 and Nasdaq 100 futures climbed 0.13% and 0.21%, respectively.

Stocks closed lower Monday, with the Nasdaq Composite falling 1% following a drop in semiconductor stocks. The Dow Jones Industrial Average shed nearly 94 points, or 0.3%, while the S&P 500 declined about 0.8%.

Investors weighed comments from JPMorgan CEO Jamie Dimon, who warned that the U.S. would likely fall into a recession over the next “six to nine months,” and said the S&P 500 could fall another 20% depending on whether the Federal Reserve engineers a soft or a hard landing for the economy.

Those remarks came at the start of a big week for third quarter bank earnings, and ahead of Wednesday’s producer price report, Thursday’s consumer price index report for September and Friday’s retail sales numbers, also for last month.

Investor reaction is focused solely on how the Federal Reserve will react to the economy as it works to dampen inflation.

“There’s always this idea of a Fed pivot coming right around the corner, and they’re just going to tighten their belts to bring inflation down without affecting the economy more broadly,” Dan Greenhaus, chief strategist and economist at Solus Alternative Asset Management, said Monday on CNBC’s “Closing Bell: Overtime.”

“All of that was always hopes and dreams. And the most likely outcome was … what history shows always happens, which is the Fed tightens, they tighten too much, they cause an economic dislocation, the market goes down. Full stop,” he added.

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China markets return to trade, Hang Seng index drops

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The Chinese and Hong Kong flags flutter as screens display the Hang Seng Index outside the Exchange Square complex, which houses the Hong Kong Stock Exchange, on January 21, 2021 in Hong Kong, China.

Zhang Wei | China News Service via Getty Images

Shares in the Asia-Pacific fell on Monday, with Hong Kong stocks leading losses.

The Hang Seng index fell more than 2% in early trade, with the Hang Seng Tech index down 3.17%.

In mainland China, the Shanghai Composite lost 0.39% on its return to trade after the Golden Week holiday and the Shenzhen Component dropped around 1%. The S&P/ASX 200 was 1.63% lower.

Markets in Japan, South Korea, Taiwan and Malaysia are closed for holidays Monday.

Later this week, the Bank of Korea will announce its benchmark interest rate decision, Singapore is set to announce its GDP estimate for the third quarter and China releases inflation data.

Taiwan Semiconductor Manufacturing Company and Japan’s Fast Retailing will report earnings and the U.S. will release inflation data for September.

On Friday in the U.S., major stock indexes dropped more than 2% after data showed the unemployment rate declined in September, sparking fear that the Federal Reserve would continue hiking rates aggressively.

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Dow futures fall 170 points to start week with key inflation data, earnings ahead

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Traders on the floor of the New York Stock Exchange.

Getty Images

Stock futures are lower Sunday night as the markets come out of a tumultuous week and traders look ahead to key reports coming in the next week that can offer insights into the health of the economy.

Futures connected to the Dow Jones Industrial Average slid 0.6% to 29,175 points. S&P 500 futures dropped 0.7% to 3,626.25 points, while Nasdaq 100 futures slipped 0.8% to 11,014.25 points.

Market observers generally consider the week ahead as the kickoff to earnings season, with four of the world’s largest banks – JPMorgan, Wells Fargo, Morgan Stanley and Citi – reporting Friday. PepsiCo, Delta and Domino’s are also among companies reporting next week.

Inflation will also take center stage as new monthly Consumer Price Index data comes Thursday morning.

It will follow a week of whiplash for market participants. The first half brought a relief rally that pushed the S&P 500 up more than 5% in its largest two-day gain since 2020.

But jobs data that economists say will keep the Federal Reserve on a path to continue raising interest rates and OPEC+’s decision to slash oil supply rattled investors, diluting wins later in the week. When day trading ended Friday, the S&P was up 1.5% compared to where it started the week. The Dow and Nasdaq were up 1.5% and 0.7%, respectively.

Still, the Dow, S&P 500 and Nasdaq had the first positive week in the last four. All remain down substantially so far in 2022, however, and the Nasdaq is less than 1% away from its 52-week low.

Meanwhile, the 2-year Treasury yield rose 6 basis points, closing at 4.316%. One basis point is equivalent to 0.01%.

“The direction of the stock market is likely to be lower because either the economy and corporate profits are going to slow meaningfully or the Fed is going to have to raise rates even higher and keep them higher for longer,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, on Friday.

“Given the conditions that we are operating under, we believe it’s prudent to begin preparing for a recession,” he added. “The talk of a shallow recession that is now the narrative-du-jour strikes us as eerily similar to the ‘inflation is transitory’ narrative of last year.”

Last week brought heightened concerns that corporate earnings will show the ugly side of a surging dollar as Levi Strauss became the latest to cut guidance due to sliding international sales.

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Stock futures inch lower ahead of September’s jobs report

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Stock futures slipped in overnight trading Thursday as investors looked ahead to September’s jobs report for further clues into the Federal Reserve’s tightening campaign.

Futures tied to the Dow Jones Industrial Average shed 12 points, or 0.04%, while S&P 500 futures dipped 0.15%. Futures tied to the Nasdaq 100 slipped 0.29%.

Advanced Micro Devices’ stock fell in overnight trading after the chipmaker warned its third-quarter revenue would be lower than anticipated. Levi Strauss shares slipped following a cut to its guidance.

Major averages closed lower during regular trading but are on pace to cap their best week since June 24 and finish about 4% higher. The Dow fell 346.93 points, or 1.15%, to 29,926.94, while the S&P 500 and Nasdaq Composite shed 1.02% and 0.68%, respectively.

All major S&P sectors finished the session in negative territory, with the exception of energy. The sector rose 1.8% as oil prices gained and is on pace to close out the week 14.7% higher.

Thursday’s downdraft comes as investors remain on edge ahead of September’s jobs report slated for release Friday. The findings could offer further certainty into the Fed’s tightening cycle, with a strong jobs market or upside surprise signaling that the Fed may need a tougher stance to slow the economy and tame surging prices. Economists surveyed by Dow Jones expect the data to show a 275,000 increase in nonfarm payrolls and unemployment to hover at 3.7%.

“The environment is ripe for a crisis and if the Fed keeps its hawkish communication up I think we’re quite likely to have something break in the financial markets,” Scott Minerd, Guggenheim’s global chief investment officer said on CNBC’s “Closing Bell: Overtime” on Thursday.

Minerd said the pace of tightening is beginning to create cracks in the financial markets and could force a Fed pivot in the coming weeks.

“All the signs are there,” he said. “I can’t tell you exactly what will cause it, but the environment is ripe and when the Fed pivots, they’re not going to preannounce it, they’re not going to ring a bell.”

A surprise to the downside occurring 75% of the time over the last 25 years in the September jobs report could lead investors to stage a rally, he added.

Along with the big jobs report, wholesale inventories and consumer credit data are also due out Friday. Cannabis stock Tilray Brands, which rose Thursday as the White House announced marijuana pardons, will report earnings results.

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