Tag Archives: hike

Business

Stocks mixed following latest Fed rate hike

Leave a comment

U.S. stocks were mixed on Wednesday afternoon after the Federal Reserve announced its latest interest rate increase, a move which brought the Fed’s benchmark policy rate to the highest level since October 2007.

In its statement the Fed noted inflation pressures but said inflation “remains elevated” as price pressures prove persistent across the economy.

The central bank also suggested Wednesday’s rate hike will not mark the end of its campaign, saying the Fed, “anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.

The statement added futures increases, “will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.”

Following the Fed’s announcement of a 0.25% rate hike, its smallest increase in nearly a year, the S&P 500 (^GSPC) was down 0.2%, while the Dow Jones Industrial Average (^DJI) sank by 0.7%. The technology-heavy Nasdaq Composite (^IXIC) turned into green figures, rising 0.2%.

On Tuesday, stocks capped off a strong start to the year, with the S&P 500 logging its best January since 2019 while the Nasdaq 100 enjoyed its strongest January rally since 2001, gaining over 10%.

Earnings season also remains in full force, with another disappointing quarter from Snap (SNAP) out last night garnering the most investor attention.

Shares of the social media company were off more than 14% after the company told investors its internal forecasts assume revenue in its current quarter will fall between 10% and 2% from a year ago.

Match Group (MTCH) and Electronic Arts (EA) shares were also down more than 9% and 12%, respectively, on Wednesday after reporting disappointing quarters on Tuesday afternoon.

Peloton (PTON) shares were up more than 17% on Wednesday after the company reported its cash burn decreased to $94 million in its latest quarter, down from $747 million nine months ago. On an adjusted basis, the company reported $8 million in free cash flow during the holiday quarter.

“If you’ve been wondering whether or not Peloton can make an epic comeback, this quarter’s results show the changes we’re making are working,” CEO Barry McCarthy wrote in a letter to shareholders.

Wednesday’s earnings highlight will come after the market close when Meta Platforms (META) releases its quarterly report.

On the economic data side, new data on private payroll growth from ADP showed private employers added 106,000 jobs last month, fewer than the 170,000 expected by economists.

In its report, ADP said weather impacted its measurement of the labor market, citing floods in California and snow storms in central and eastern parts of the country during the reference week.

“In January, we saw the impact of weather-related disruptions on employment during our reference week. Hiring was stronger during other weeks of the month, in line with the strength we saw late last year,” said ADP chief economist Nela Richardson.

Data on job openings for December out Wednesday suggested demand for workers remains robust, as 11 million jobs were available at the end of the month, up from 10.4 million at the end of November.

Elsewhere in economic data, readings on the manufacturing sector from S&P Global and the Institute for Supply Management showed activity remained depressed in the first month of 2023.

The ISM’s latest manufacturing PMI reading fell to its lowest level since May 2020, which economists see as another sign recession pressures continue to build in the U.S. economy.

Writing in a note to clients on Wednesday, Andrew Hunter, senior U.S. economist at Capital Economics, wrote that a more detailed looked at the ISM’s report suggests “domestic economic weakness is increasingly the main driver of the manufacturing sector’s woes and, overall, the ISM report reinforces our view that the US economy is close to recession.”

S&P Global’s reading showed manufacturing activity deteriorated at a slightly slower rate in January than December, but still indicates “a worryingly steep rate of decline in the health of the goods producing sector,” according to Chris Williamson, chief business economist at S&P Global Market Intelligence.

Click here for the latest stock market news and in-depth analysis, including events that move stocks

Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance app for Apple or Android

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



Read original article here

Business

Stock futures tick lower as traders await the Federal Reserve’s latest rate hike decision

Leave a comment

Traders on the floor of the NYSE

Source: NYSE

Stock futures slipped Wednesday as investors looked ahead to the Federal Reserve’s Wednesday meeting.

Futures tied to the Dow Jones Industrial Average shed 70 points or 0.2%. S&P 500 futures and Nasdaq Composite futures were down 0.24% and 0.35%, respectively.

The moves come after stocks jumped to end January on a strong note. The Dow Jones Industrial Average ended the day nearly 369 points higher, rising by 1.09%. The S&P 500 gained 1.46% to cap its best January performance since 2019. The tech-heavy Nasdaq Composite rose 1.67%, its best January performance in 22 years.

On Wednesday, the Federal Reserve will announce how much it is increasing interest rates in its latest effort to tame high inflation. Markets are expecting a 25 basis point, or 0.25 percentage point, bump from the central bank. On Tuesday, the employment cost index, a measure of wage increases, showed compensation rose 1% in the fourth quarter, less than the 1.1% estimate by Dow Jones.

Still, traders may be getting ahead of themselves in expecting a more dovish tone from the Fed, or looking for signs that a pause in hikes or even a pivot is coming soon.

“Aggressive tightening in 2022 has led to signs of decelerating inflation but from levels that remain unacceptably high,” Ron Temple, chief market strategist at Lazard said in a Tuesday note. “With a 25bps hike already discounted by markets, Powell’s task is to unambiguously signal the Fed’s commitment to tame inflation.”

The Federal Reserve will announce its decision Wednesday afternoon, followed by Chairman Jerome Powell’s comments.

Earnings season continues as well. Peloton and Meta Platforms are scheduled to report quarterly results on Wednesday.

Read original article here

Business

Dow Jones Futures Signal More Losses On Fed Rate Hike Outlook; Elon Musk Sells More Tesla Stock

Leave a comment

Dow Jones futures fell solidly early Thursday, along with S&P 500 futures and Nasdaq futures, as investors continued to mull Wednesday’s Federal Reserve news. Weak Chinese economic data and upcoming U.S. economic reports also were in focus, along with Elon Musk’s latest Tesla sales.




X



The stock market rally reversed lower Wednesday after the Federal Reserve penciled in 5.1% as the new target peak rate and Fed chief Jerome Powell demanded “substantially more evidence” that inflation is getting under control.

But stocks pared losses in whipsaw action as investors also mulled other Powell comments and hopes for even-slower rate hikes to start 2023. Tesla (TSLA) CEO Elon Musk disclosed late Wednesday’s that he sold about $3.6 billion worth of TSLA stock this week, as shares have tumbled to hit fresh bear-market lows. Apple (AAPL) fell below its 50-day moving average.

But solar stocks were strong, with the Invesco Solar ETF (TAN) flashing a buying opportunity, as Enphase Energy (ENPH), SolarEdge Technologies (SEDG), First Solar (FSLR) and Array Technologies (ARRY) all rose.

Fed Rate Hike, Peak Rate

The central bank hiked the fed funds rate by 50 basis points, to 4.25%-4.5% on Wednesday afternoon, as expected. But policymakers, in new quarterly projections, also now see a peak rate of 5.1%, up from 4.6% at the September Fed meeting. Fed chief Powell had stated in recent weeks that the peak rate was likely headed higher. But 5.1% was above market expectations, especially after Tuesday’s relatively tame inflation report.

Fed Chief Powell Hawkish, Dovish

Powell, speaking shortly after the Fed meeting announcement and projections, said the full effects of this year’s Fed rate hikes have not been felt yet, “but we have more to do.” The Fed chief noted the “welcome reduction” in price gains in the last two CPI reports, but said policymakers need “substantially more evidence to have confidence that inflation is on a sustained downward path.”

Powell didn’t rule out a further step-down in rate hikes, to just a quarter point in February. But where the fed funds rate peaks, and how long it stays high, is more important, he stressed. Notably, Powell doesn’t see any rate cuts in 2023.

But he also said “Our policy is getting into a pretty good place now.”

Markets are pricing in a 72% chance of a quarter-point Fed rate hike, to a 4.5%-4.75% range, up from 60% on Tuesday. Notably, investors expect another quarter-point hike in late March, but now see a decent chance of no move at all.

The Fed continues to see a growth slowdown in 2023, not an actual recession.

The major indexes, all up modestly heading into the Fed meeting announcement and Powell’s speech, turned lower in volatile trading. For a second straight session, the S&P 500 index moved above the 200-day moving average but closed below that key level.

Investors should be cautious about adding exposure in the current market, with the indexes volatile and near key levels.

China, U.S. Economic Data

Chinese retail sales tumbled 5.9% in November vs. a year earlier, far worse than expected and deteriorating from October’s 0.5% drop. Industrial production climbed 2.2%, with growth slowing far more than forecast from October’s 5%.

China Covid lockdowns took a serious toll on the economy. Covid rules are rapidly easing in the past few weeks, but now China is bracing for a massive wave of infections.

Investors will get U.S. retail sales data for November, the December Philly Fed manufacturing index and weekly jobless claims, at 8:30 a.m. ET. November industrial production will follow at 9:15 a.m. ET.

Dow Jones Futures Today

Dow Jones futures fell 0.75% vs. fair value. S&P 500 futures tumbled 0.95% and Nasdaq 100 futures skidded 1.2%.

The Bank of England and Swiss central bank both raised rates by 50 basis points on Thursday, as expected. The European Central Bank is seen doing the same before the U.S. market open.

The 10-year Treasury yield fell 2 basis points to 3.48%.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Stock Market Rally

The stock market rally rose heading into the Fed meeting announcement, then reversed lower in volatile action the rest of the session.

The Dow Jones Industrial Average fell 0.4% in Wednesday’s stock market trading. The S&P 500 index gave up 0.6%. The Nasdaq composite lost 0.8%. The small-cap Russell 2000 ceded 0.7%.

Apple stock sank 1.55% to 143.21, back below the 50-day moving average.

U.S. crude oil prices climbed 2.5% to $77.28 a barrel.

The 10-year Treasury yield closed flat at 3.5%.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 0.4%, while the Innovator IBD Breakout Opportunities ETF (BOUT) edged down 0.1%. The iShares Expanded Tech-Software Sector ETF (IGV) lost 0.2%. The VanEck Vectors Semiconductor ETF (SMH) slumped 1.7%.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) gave up 1% and ARK Genomics ETF (ARKG) 0.7%. Tesla stock is a major holding across Ark Invest’s ETFs.

The SPDR S&P Metals & Mining ETF (XME) retreated 0.9%. SPDR S&P Homebuilders ETF (XHB) sank 0.5%. The Energy Select SPDR ETF (XLE) stepped back 0.6% and the Financial Select SPDR ETF (XLF) 1.25%. The Health Care Select Sector SPDR Fund (XLV) edged up 0.2%.

Solar Stocks

The Invesco Solar ETF rose 1.8% to 82.61 on Wednesday. The TAN ETF has an 84.28 cup-with-handle buy point, but investors could have taken an early entry from the 21-day moving average.

Right now solar stocks are generally moving higher together, so TAN is a good way to play the sector upside with less individual stock risk.

Enphase Energy, First Solar and SEDG stock are the three biggest components, accounting for nearly a third of TAN’s weight.

ENPH stock is now slightly extended from its own cup-with-handle buy point, according to MarketSmith analysis. SEDG stock is also extended from its handle entry. FSLR stock is bouncing from its 10-week line, offering a new buying opportunity.

Array Technologies is also a TAN component. ARRY stock jumped 8.3% to 23.55, just below a 23.60 cup-with-handle buy point. But shares are 12.7% above the 21-day line and 26% above the 50-day, making an ARRY stock buy riskier, especially in the current market.

Tesla Vs. BYD: Which EV Giant Is The Better Buy?

Tesla Stock

TSLA stock fell 2.6% to 156.80 on Wednesday. Shares are now down 12.4% for the week, continuing to set two-year lows. Tesla stock peaked at 414.46 in November 2021.

TSLA stock fell more than 1% in premarket trade.

Late Wednesday, Elon Musk disclosed that he sold nearly 22 million Tesla shares for about $3.6 billion in the three days ended Dec. 14. Musk has sold more than $39 billion in Tesla stock since shares peaked in November 2021.

Trading volume has been especially heavy this week, with Tuesday’s trading the most in 13 months.

Earlier Wednesday, Goldman Sachs cut its TSLA stock price target and lowered its Tesla deliveries forecast for Q4. Morgan Stanley sees Tesla stock as a top pick for 2023, but warned that “the brakes are screeching on EV demand” overall.

If you covered up the TSLA ticker and just looked at the chart, you would just move on.

Five Best Chinese Stocks To Watch Now

Market Rally Analysis

The past two days are a great example that it’s not the news, it’s the market’s reaction to the news.

On Tuesday, a cooler-than-expected CPI inflation report sent stocks flying at the open, but they quickly slashed gains.

On Wednesday afternoon, the central raised its peak Fed rate forecast more than expected. Fed chief Powell made it clear that inflation needs to fall a lot more, though he also made more-dovish signals. The major indexes sold off hard, but then slashed losses, briefly turning positive before fading again.

The S&P 500 index, above its 200-day line for a second straight session, failed to close above that key level, this time reversing lower. But it did find support at the 21-day line, which is closing the gap with the 200-day.

The Dow Jones and Nasdaq also tested their 21-day lines successfully. The Russell 2000, which has become a lagging index, fell back toward its 50-day line.

Despite the disappointment since Tuesday’s opening highs, the major indexes are all up about 1.6% for the week, while the Russell 2000 is 1% higher.

The stock market often has a second-day reaction to Fed meetings, especially with so much in flux. Dow Jones futures suggest that’s happening.

Time The Market With IBD’s ETF Market Strategy

What To Do Now

The stock market rally isn’t giving any reason to add exposure. Previously, the indexes would at least have a strong session to lure investors in, then chop them up with steady losses over the next several sessions.

But right now the major indexes can’t hold a gain.

If you buy on strength, there’s a good chance you’re buying right at a near-term top. If you’re buying on weakness, you might be jumping onto a sinking ship.

Better to wait for the major indexes to show signs of a sustained market rally. That would involve the S&P 500 getting above its 200-day line and then all the major indexes clearing their Dec. 1 highs. Even in that positive scenario, investors should add exposure carefully.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

YOU MAY ALSO LIKE:

Why This IBD Tool Simplifies The Search For Top Stocks

Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader

Best Growth Stocks To Buy And Watch

IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today



Read original article here

Business

Fed Rate Hike Looms After Market Rally Fizzles; Tesla Stock Hits New Lows As Elon Musk Admits This

Leave a comment

Dow Jones futures tilted higher overnight, along with S&P 500 futures and Nasdaq futures. All eyes await the Federal Reserve meeting announcement and Fed chief Jerome Powell. Fed rate hike outlook signals will be key.




X



The stock market rally closed modestly higher but after initially gapping up on a tame CPI inflation report. Promising moves by leading stocks generally fizzled or reversed lower.

Tesla (TSLA) plunged to fresh bear market lows on Tuesday as the sentiment turns decidedly bearish on the EV giant. TSLA stock has been selling off in heavy volume. CEO Elon Musk himself appeared to concede Tesla demand concerns on Wednesday.

Among Dow Jones megacap techs, Apple (AAPL) erased a strong early gain amid reports of a sweeping change to its App Store model. Microsoft (MSFT) closed higher but after hitting key resistance.

Airline stocks sold off hard as a JetBlue (JBLU) warning added to recent concerns about travel demand heading into 2023. United Airlines (UAL), which flirted with buy points in the past couple of weeks, plunged Wednesday.

Meanwhile, General Electric (GE), Goldman Sachs (GS) and Peabody Energy (BTU) all found support at key levels and are near possible buy points. Peabody was Tuesday’s IBD Stock Of The Day.

The video embedded in this article discussed Tuesday’s market action and analyzed Tesla stock, GE and Peabody Energy.

Fed Rate Hike, Outlook

The Federal Reserve will almost certainly hike rates 50 basis points at 2 p.m. ET, after four straight Fed rate hikes of 75 basis points. What investors want are signals about Fed rate policy in early 2023.

Following Tuesday’s CPI inflation report, markets are now slightly leaning toward a quarter-point rate hike on Feb. 1.

The November consumer price index came in lighter than expected, with a 0.1% monthly gain, or 0.2% excluding food and energy. The CPI inflation rate fell to 7.1%, the lowest in a year and down from October’s 7.7%. The core CPI inflation rate cooled to 6% from 6.3%.

The Fed will also release quarterly economic projections, along with policymakers’ rate hike projections. That might offer insight into where policymaker see the “terminal” or peak fed funds rate.

Fed chief Jerome Powell will speak at 2:30 p.m. ET. His comments about inflation and recession risks and peak Fed rates will be critical for stocks and Treasury yields.

Dow Jones Futures Today

Dow Jones futures advanced 0.1% vs. fair value. S&P 500 futures climbed 0.15% and Nasdaq 100 futures rose 0.2%.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Stock Market Rally

The stock market rally started Tuesday off strong, with the major indexes all clearing short-term highs on the CPI inflation report. But gains faded significantly.

The Dow Jones Industrial Average closed up 0.3% in Tuesday’s stock market trading. The S&P 500 index climbed 0.7%. The Nasdaq composite climbed 1%. The small-cap Russell 2000 advanced 0.3%.

Apple stock rose as high as 149.97 intraday, but closed up just 0.7% to 145.47. That did just retake the 50-day line. Apple will open its iPhone and iPad devices to multiple app stores in Europe, Bloomberg reported, to satisfy European regulators. Apple has turned the App Store into a massive money-spinner over the past several years.

Microsoft stock climbed 1.75% to 256.92, closing above its Dec. 1 high. But shares were well off the morning high of 263.92. MSFT stock peaked right at the 200-day line, a key resistance area.

U.S. crude oil prices popped 3% to $75.39 a barrel.

The 10-year Treasury yield tumbled 11 basis points to 3.5%, though off intraday lows of 3.43%. The two-year Treasury yield, more closely tied to Fed policy, plunged 18 basis points to 4.22%.

ETFs

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.8%, while the Innovator IBD Breakout Opportunities ETF (BOUT) climbed 0.9%. The iShares Expanded Tech-Software Sector ETF (IGV) rallied 1.6%, with MSFT stock a major component. The VanEck Vectors Semiconductor ETF (SMH) added 1.7%. Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) edged down 0.1% and ARK Genomics ETF (ARKG) rose 1.1%. Tesla stock is a major holding across Ark Invest’s ETFs, but especially ARKK.

SPDR S&P Metals & Mining ETF (XME) advanced 0.8% and the Global X U.S. Infrastructure Development ETF (PAVE) 0.9%. U.S. Global Jets ETF (JETS) descended 2.85%, with UAL stock and JetBlue both components. SPDR S&P Homebuilders ETF (XHB) gained 1.8%, with several builders and housing-related retailers showing strength. The Energy Select SPDR ETF (XLE) popped 1.9%. The Financial Select SPDR ETF (XLF) and Health Care Select Sector SPDR Fund (XLV) both edged up 0.3%.

Five Best Chinese Stocks To Watch Now

Stocks To Watch

GE stock dipped 0.4% to 82.88 after topping its 21-day moving average intraday. General Electric on Monday round-tripped a solid advance from a bottoming base with an 81.40 buy point. On a weekly chart, GE stock has found support at the 10-week moving average for the first time since the early November breakout. A strong bounce from these levels, perhaps topping Tuesday’s intraday high of 84.90, would offer a buying opportunity.

GE earnings, though uneven, have rebounded in 2022, with even-stronger growth seen next year.

GS stock also recently round-tripped a cup-base breakout and found support at the 10-week line, brushing below the 358.72 buy point. The investment bank is rebounding this week. On a weekly chart, Goldman stock is working on a 13-month cup-with-handle base with a 389.68 buy point, according to MarketSmith analysis.

On Tuesday, shares rose 1.5% to 368.89, fractionally above its 21-day moving average but off intraday highs of 378.56. A move above Tuesday’s high could offer an early entry into GS stock.

Peabody Energy Stock

BTU stock rose 2.2% to 28.47 on Tuesday, bouncing from its 50-day and 10-week lines but hitting resistance at the 21-day line. Peabody stock has a 32.99 handle buy point on a consolidation going back nearly eight months. But BTU stock, much like the general market, has a tendency of quick advances followed by more-gradual withdrawals ceding much of the prior gain. A move above Tuesday’s intraday high of 29.08 could offer an early entry from both the 50-day and 21-day lines as well as breaking the downtrend of the handle.

Tesla Stock

Tesla stock opened higher, but quickly gave back gains and then turned sharply lower for a second straight session. Shares blasted through their Nov. 21 bear market lows, closing down 4.1% to 160.95. Volume was the heaviest in over a year, with several other high-trade retreats in the past couple of weeks.

It’s possible that some big TSLA stock investors or mutual funds are selling shares as they break lower and as the year winds down.

More broadly, Tesla stock has lost roughly half its value just since late September. Sharp sell-offs have been followed by tepid, short bounces.

On Tuesday, data showed Tesla China vehicle registrations last week came in below forecasts. That adds to China demand concerns and comes amid widespread reports that Tesla will slow Shanghai plant production, possibly suspending output at year-end.

Elon Musk on Tuesday appeared to acknowledge that Tesla demand is an issue. “Tesla will be great long-term, but doesn’t control macroeconomic tides,” Musk tweeted.

While a weak global economy is likely a factor, Tesla also faces growing competition, especially in China.

Meanwhile, Elon Musk’s Twitter reign is weighing on Tesla stock. His attention appears focused on Twitter vs. the EV giant. Meanwhile, Musk’s increasingly partisan, trolling tweets have hurt his brand image, especially  with Democrats. The concern for TSLA stock investors is that Elon Musk’s negatives will turn off potential Tesla EV buyers.

Tesla Vs. BYD: Which EV Giant Is The Better Buy?

Market Rally Analysis

The stock market rally popped at Tuesday’s open on the tame CPI inflation report, but quickly gave up much of those gains.

All the major indexes topped their Dec. 1 intraday highs briefly before pulling back. The S&P 500 did close back above its 200-day moving average. The Nasdaq continued to bounce from its 50-day and 21-day lines.

The Russell 2000 opened above the 200-day, but faded well below that level and finished below its 21-day line.

If the major indexes, especially the S&P 500, could move above their Dec. 1 highs, it would be a bullish sign, but not necessarily definitive. The current market rally has had a number of big one-day gains, soon followed by pullbacks that erase that action. That’s made it hard to buy on strength.

Not surprisingly, a lot of stocks showed big bullish moves at Tuesday’s open, but tumbled back for small advances or outright losses. Megacaps are neutral at best, such as Microsoft stock, laggards such as Apple stock or outright losers like Tesla.

Time The Market With IBD’s ETF Market Strategy

What To Do Now

Tuesday’s market action shows why investors shouldn’t buy right at the open, especially when the major indexes gap up on news. It also shows why investors need to keep their emotions in check.

If the market rallies strongly on Wednesday’s Fed rate hike and Fed chief Powell’s comments, there will likely be some buying opportunities. But add exposure gradually, using early entries and pullbacks for slightly safer entries.

Until the market rally shifts from choppy action to sustained uptrend, it’s risky to ramp up exposure.

A lot of stocks from a variety of sectors are setting up. So you want to be prepared, working on your watchlists. Stay engaged so you can act as stocks clear buy points.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

YOU MAY ALSO LIKE:

Why This IBD Tool Simplifies The Search For Top Stocks

Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader

Best Growth Stocks To Buy And Watch

IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today



Read original article here

Business

Fed’s Harker says favors possible rate hike pause when funds rate hits around 4.5%

Leave a comment

By Michael S. Derby

(Reuters) – Federal Reserve Bank of Philadelphia President Patrick Harker said Thursday the point where the central bank might pause on rate rises could be getting closer.

“I am in the camp of wanting to get to what would clearly be a restrictive stance, somewhere north of four-ish, you know, four and a half percent, and then I would be okay with taking a brief pause, seeing how things are moving. And then if we have to, we can continue to tighten,” he said in appearance in Philadelphia.

The current federal funds rate stands between 3.75% and 4%. Harker is not currently a voting member of the rate setting Federal Open Market Committee but will be next year.

(Reporting by Michael S. Derby)

Read original article here

Entertainment

Shawn Mendes goes shirtless for solo hike in LA

Leave a comment

Shawn Mendes further solidified his status as a Hollywood hunk while out on a hike in Los Angeles on Wednesday.

The singer, 24, went shirtless for the outdoor workout, showcasing his chiseled pecs and muscular arms.

He completed the look with black basketball shorts, lace-up sneakers and black Nike socks.

Hunk! Shawn Mendes further solidified his status as a Hollywood hunk while out on a hike in Los Angeles on Wednesday

The Canadian hitmaker, with a gleam of sweat over his physique, was captured strolling across the grass after braving the gravel terrain solo.

Shawn has been focusing in his mental and physical health after abruptly canceling his 2022 Wonder: The World Tour back in July.

It was meant to be in support of his fourth studio album Wonder, which was released in 2020.

Shawn was scheduled to perform a total of 87 concerts across Europe and North America starting June 2022 and ending in the summer of 2023.

Shirtless: The singer, 24, went shirtless for the outdoor workout, showcasing his chiseled pecs and muscular arms

The Canadian hitmaker, with a gleam of sweat over his physique, was captured strolling across the grass after braving the gravel terrain solo

Sporty: He completed the look with black basketball shorts

The North American leg kicked off on June 27 in Portland, Oregon.

But after just eight shows, Shawn abruptly decided to postpone the tour for three weeks in order to focus on his mental health.

On July 27, Shawn informed his fans that he’d decided to cancel the tour all together, citing continued struggles with his mental health.

Late last year, the Stitches singer split from his girlfriend of two-years, fellow musical artist Camila Cabello.

Tatted: By going shirtless, Shawn was also able to show off his growing tattoo collection 

Dirt: Before taking his grassy stroll, Shawn hit the gravel and dirt trail frequented by LA residents

Shawn and Camila met back in 2014 while serving as supporting acts for Austin Mahone’s ‘ ‘Live On Tour’ concerts.

In the years that followed, Shawn and Camila were the subject of romance rumors with fans regularly ‘shipping’ the tight-knit pair on social media. 

And fans got their wish in 2019 when they duo, who collaborated on the sensual single Senorita that year, took they friendship to a romantic level.

Shade: Though most of the trail was in direct sunlight, Shawn was treated to some shade at the end

Catching his breath: Shawn took a moment to catch his breath

Shawn and Camila spent the coronavirus lockdown together at the crooner’s Miami, Florida and often shared gushing posts about one another to social media.

The former couple, who remain close friends, announced their shock split in November 2021 by sharing a joint statement to their respective social media platforms.

Just two months prior, the lovebirds had walked the red carpet together at the Met Gala in New York City. 

Health-focused: Shawn has been focusing in his mental and physical health after abruptly canceling his 2022 Wonder: The World Tour back in July

Packed schedule: Shawn was scheduled to perform a total of 87 concerts across Europe and North America starting June 2022 and ending in the summer of 2023

Shawn spoke about moving on from the 25-year-old songstress during an April 2022 appearance on SiriusXM’s Morning Mashup.

‘I think a lot of it has been about giving myself a lot of grace, you know, and not being too hard on myself about the feelings and the kind of spikes of I’m good and spikes of I’m not good,’ explained the star.

He added that a ‘huge’ breakthrough for him was coming to the realization that he is supported by so many people in his life and that he no longer had ‘to put all of my, you know, hardship onto one person.

Kickoff: The North American leg kicked off on June 27 in Portland, Oregon (pictured)

Postponed: But after just eight shows, Shawn abruptly decided to postpone the tour for three weeks in order to focus on his mental health

‘It was, it was learning how to trust my friends again, learning how to trust my family, learning how to trust people around me in my life. Instead of like, just calling one person, I had now six people I could call.’

Though he’s taken a step back from music and touring as he continues to work on himself, Shawn recently lent his voice to the title character in the animated film Lyle, Lyle Crocodile.

While promoting the family-friendly flick, he revealed on Good Morning America that he signed on to make a film in the hopes of entertaining children.

Canceled: On July 27, Shawn informed his fans that he’d decided to cancel the tour all together, citing continued struggles with his mental and physical health

‘I was thinking of kids right off the bat,’ he told hosts George Stephanopoulos, Robin Roberts and T.J. Holmes.

And he also said he was a good fit to star as Lyle because they are both seen as sensitive.

‘I think I have a sensitive reputation,’ Shawn shared. ‘He’s this big giant animal, but he’s very sweet and soft.’

Split: Late last year, the Stitches singer split from his girlfriend of two-years, fellow musical artist Camila Cabello; the pair seen in September 2021

But while the film’s release marks an uptick for Shawn professionally, fans shouldn’t get their hopes up that the Wonder singer will be releasing new music anytime soon.

Beyond writing a new song called Heartbeat for the movie’s soundtrack, Shawn confirmed that nothing else in the works.

‘I have this and a song that I wrote for the soundtrack,’ he said, ‘but that’s all for now. Just the crocodile.’

The latest: Though he’s taken a step back from music and touring as he continues to work on himself, Shawn recently lent his voice to the title character in the animated film Lyle, Lyle Crocodile; pictured October 2 at the film’s premiere in NYC

Read original article here

Business

Wall St down for fourth straight day on Fed rate hike worry

Leave a comment

  • U.S. initial weekly jobless claims fall
  • Services industry growth slows
  • Qualcomm, Roku slump on weak forecasts
  • Dow down 0.46%, S&P 500 down 1.06%, Nasdaq down 1.73%

NEW YORK, Nov 3 (Reuters) – U.S. stocks closed lower for a fourth consecutive session on Thursday as economic data did little to alter expectations the Federal Reserve would continue raising interest rates for longer than previously thought.

Following the Federal Reserve’s statement on Wednesday, comments from Fed Chair Jerome Powell that it was “very premature” to be thinking about pausing its rate hikes sent stocks lower as U.S. bond yields and the U.S. dollar rose, a pattern that extended into Thursday.

Economic data on Thursday showed a labor market that continues to stay strong, although a separate report showed growth in the services sector slowed in October, keeping the Fed on its aggressive interest rate hike path.

Jobless claims and Challenger Gray

“Years ago the Fed’s job was to take away the punch bowl and that balance is always a very difficult transition, you want the economy to slow to keep inflation from getting out of hand but you want enough earnings to support stock prices,” said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.

“It is about the rate of change as much as the change so when the rate of change starts to slow … that almost becomes a positive even though in absolute terms we are going to continue to see higher rates, and higher rates means more competition for stocks and lower multiples.”

The Dow Jones Industrial Average (.DJI) fell 146.51 points, or 0.46%, to 32,001.25, the S&P 500 (.SPX) lost 39.8 points, or 1.06%, to 3,719.89 and the Nasdaq Composite (.IXIC) dropped 181.86 points, or 1.73%, to 10,342.94.

While traders are roughly evenly split between the odds of a 50 basis-point and 75 basis-point rate hike in December, the peak Fed funds rate is seen climbing to at least 5%, compared with a prior view of a rise to the 4.50%-4.75% range.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 14, 2022. REUTERS/Brendan McDermid

Investors will closely eye the nonfarm payrolls report due on Friday for signs the Fed’s rate hikes are beginning to have a notable impact on slowing the economy.

The climb in yields weighed on megacap growth companies such as Apple Inc (AAPL.O), down 4.24%, and Alphabet Inc (GOOGL.O), which lost 4.07% and pulled down the technology (.SPLRCT) and communication services (.SPLRCL) sectors as the worst-performing on the session.

Losses were curbed on the Dow thanks to gains in industrials including Boeing Co (BA.N), which rose 6.34%, and a 2.20% climb in heavy equipment maker Caterpillar Inc (CAT.N).

Qualcomm Inc (QCOM.O) and Roku Inc (ROKU.O) shed 7.66% and 4.57%, respectively, after their holiday quarter forecasts fell below expectations. read more

With roughly 80% of S&P 500 companies having reported earnings, the expected growth rate is 4.7%, according to Refinitiv data, up slightly from the 4.5% at the start of October.

Volume on U.S. exchanges was 11.81 billion shares, compared with the 11.63 billion average for the full session over the last 20 trading days.

Declining issues outnumbered advancing ones on the NYSE by a 1.75-to-1 ratio; on Nasdaq, a 1.50-to-1 ratio favored decliners.

The S&P 500 posted 6 new 52-week highs and 46 new lows; the Nasdaq Composite recorded 77 new highs and 291 new lows.

Reporting by Chuck Mikolajczak in New York
Editing by Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Business

FED interest rate hike live online: inflation relief check by state, Student loan forgiveness, unemployment

Leave a comment

Those who paid down student loan debt during moratorium getting refund checks

Around 8.8 million borrowers tried to make headway on paying down their student loan debt during the moratorium on payments and interest. The pause on student loan payments was implemented in March 2020 and has been extended several times since.

However, the holiday will be coming to an end soon, expiring 31 December 2022. Millions of borrowers were hoping to take advantage of President Biden’s annouced federal student loan forgiveness program.

The program came to a screeching halt though when some 22 million had already signed up after an injunction was imposed by the courts due to a lawsuit from a handful Republican states. Good news though for those that paid down their debt during the moratorium.

Bloomberg reports that despite the injunction, they will be receiving refunds as part of the covid-19 relief stimulus program. 

Read original article here

Business

Stock futures flat after a volatile session following the Fed’s latest interest rate hike

Leave a comment

Stock futures were muted Thursday morning following losses during the daily trading session after the Federal Reserve delivered another interest rate hike and signaled that no pivot or rate cut is coming anytime soon.

Futures tied to the Dow Jones Industrial Average inched up 9 points, or 0.03%. S&P 500 futures and Nasdaq 100 futures were both roughly flat.

Shares of Qualcomm, Roku and Fortinet slipped after reporting disappointing quarterly results and forward guidance.

Traders had anticipated the central bank’s 0.75 percentage point rate increase and initially read the Fed’s statement as dovish, sending stocks higher.

Those gains reversed when Federal Reserve Chair Jerome Powell said it was “premature” to talk about a rate hike pause and that the terminal rate would likely be higher than previously stated.

Traders react as Federal Reserve Chair Jerome Powell speaks on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, November 2, 2022.

Brendan McDermid | Reuters

“We still have some ways to go and incoming data since our last meeting suggests that the ultimate level of interest rates will be higher than previously expected,” he said.

The Dow Jones Industrial Average ended Wednesday’s trading session 416 points lower, or down1.3%, decreasing its significant October rebound. The S&P 500 dropped 2% and the Nasdaq Composite was off by 2.8%.

Markets will likely continue to seesaw until it is clear inflation has cooled off and that the Fed has stopped marching rates higher. Any data that shows the U.S. economy isn’t slowing as the central bank tightens policy will likely weigh on stocks.

The next important report is October nonfarm payrolls, set to be released Friday.

“You get a good jobs number, in other words a good unemployment rate that doesn’t go higher, then the market is in a lot of trouble,” said Guy Adami, director of advisor advocacy at Private Advisor Group, said on CNBC’s “Fast Money.”

Read original article here

Business

Dogecoin Rally Halts, Bitcoin, Ethereum Down After Fed Rate Hike — But 1 Major Crypto Is Still Charging Ahead – Bitcoin (BTC/USD), Ethereum (ETH/USD), Dogecoin (DOGE/USD)

Leave a comment

Major coins traded in negative territory on Wednesday evening as the global cryptocurrency market cap declined 1.8% to $999.6 billion at 9:31 p.m. EDT.

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD -1.5% -2.7% $20,225.41
Ethereum ETH/USD -3.4% -2% $1,534.63
Dogecoin DOGE/USD -8.1% 80.5% $0.13
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
Arweave (AR) 37.4% $14.09
Litecoin (LTC) 15.3% $63.65
Mina (MINA) 15.3% ​​$0.78

See Also: eToro Review  — Crypto, Copy Trading & More

Why It Matters: Bitcoin, Ethereum, and Dogecoin all were trading lower after the Federal Reserve’s latest rate hike caused risk assets, including stocks, to plummet. 

The tech-heavy Nasdaq closed 3.4% lower intraday, while S&P 500 ended Wednesday’s session 2.5% down. At the time of writing, U.S. stock futures were flat.

On Wednesday, all 12 Federal Open Market Committee members voted to raise the target fed funds rate by 0.75% to a range of between 3.75% and 4%. This was the fourth straight such rate hike in the U.S. Federal Reserve’s fight against inflation.

Edward Moya, a senior market analyst with OANDA, noted the dovish part of the Fed’s statement, where the central bank said that it will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.

“Bitcoin continues to trade above the $20,000 level as the Fed has confirmed what markets were hoping for; A downshift in tightening is coming. The initial Fed reaction was rather strong for most risky assets, but it was not sustained as the central bank will remain dependent, with the next round of inflation data,” said Moya, in a note seen by Benzinga.

“Inflation has been high for 18 months and the Fed will remain committed to using their tools, which means we won’t get a greenlight for risky assets until inflation is dropping sharply.”

Justin Bennett noted that the dollar index still has “bull flag potential” and is set to close above the 111.80 mark.

“​​Those wishing for an extended rally from [crypto] need the DXY back below this 111.50-111.80 area in the coming days,” said the trader.

Dogecoin, which surged over the past week after Elon Musk‘s Twitter takeover, was seen cooling off on Wednesday evening.

The meme coin’s 24-hour trading volume declined 41.3% to $4.6 billion, according to CoinMarketCap data. At the time of writing, over 24 hours, Coinglass data indicated that $23.8 million worth of DOGE was liquidated.

Serhii Zhdanov, CEO of cryptocurrency trading platform EXMO, said in a note that for almost three-and-a-half days when DOGE traded between 6 and 9 cents, it accounted for 20% of the exchange’s weekly trading volume. 

DOGE/USD Volume Distribution Between Oct.26 and Nov. 1 — Courtesy EXMO

“A sharp jump in price occurred on October 29: DOGE rose by more than 50% in 8 hours. This is the main reason why there was relatively little trading volume between $0.09 and $0.12. The excitement in the market began with an increase above 0.12 USD,” said Zhdanov.

In the second half of the week, trades were mostly between 12 to 15 cents and this period accounted for 57% of the weekly trading volume.

Market intelligence platform, Santiment, noted that Litecoin (LTC) is “currently on a nice run” and decoupled from the cryptocurrency pack. 

“We have seen that the amount of addresses with 1,000 or more [LTC] has grown rapidly since mid-June, and [LTC’s] price vs. [BTC] has grown +51% since June 12th. 

Santiment noted that 314 new shark and whale LTC addresses have been created since May 27. At the time of writing, LTC traded 16% higher at $63.80. For the week, the coin has gained 12.9%. It should be noted that LTC and DOGE can be mined together.

Read Next: What The Fed’s Latest Interest Rate Hike Means For The Crypto World



Read original article here