Tag Archives: stimulus

Bank of England strengthens emergency stimulus to help ease market turmoil

October 10, 2022 Admin Leave a comment

Bank of England Governor Andrew Bailey has said that central bank independence “is critically important.”

Bloomberg | Bloomberg | Getty Images

LONDON — The Bank of England on Monday announced further measures to ensure financial stability in the U.K., building on its intervention in the long-dated bond market.

The Bank’s Financial Stability Committee on Sep. 28 announced a two-week emergency purchase program for long-dated U.K. government bonds — known as “gilts” — to restore order to the markets and protect liability driven investment (LDI) funds from imminent collapse.

The central bank announced on Monday that it would introduce further measures to ensure an “orderly end” to its purchase scheme on Oct. 14, including increasing the size of its daily auctions to allow headroom for gilt purchases ahead of Friday’s deadline.

“To date, the Bank has carried out 8 daily auctions, offering to buy up to £40 billion, and has made around £5 billion of bond purchases. The Bank is prepared to deploy this unused capacity to increase the maximum size of the remaining five auctions above the current level of up to £5 billion in each auction,” the Bank said in Monday’s announcement.

The auction limit will be confirmed each morning at 9 a.m. local time, with Monday’s set at £10 billion ($11 billion).

The Bank will also launch a Temporary Expanded Collateral Repo Facility (TECRF), which will allow banks to ease liquidity pressures on client funds embroiled in recent market volatility. Following last month’s unprecedented spike in gilt yields, LDIs — which hold substantial quantities of gilts and are owned predominantly by final salary pension schemes — were receiving margin calls from lenders.

A margin call is a demand from brokers to increase equity in an account when its value falls below the broker’s required amount.

The TECRF will enable banks to run what the Bank called “liquidity insurance operations,” which will last beyond Friday’s deadline and ease pressures on client LDI funds.

“Under these operations, the Bank will accept collateral eligible under the Sterling Monetary Framework (SMF), including index linked gilts, and also a wider range of collateral than normally eligible under the SMF, such as corporate bond collateral,” the Bank said.

Thirdly, the Bank said it would be ready to use its regular Indexed Long Term Repo operations each Tuesday — which allow market participants to borrow BOE cash reserves for six months in exchange for less liquid assets — to further ease liquidity pressures on LDI funds.

“This permanent facility will provide additional liquidity to banks against SMF eligible collateral, including index linked gilts, and so support their lending to LDI counterparties,” the Bank said.

“Liquidity is also available through the Bank’s new permanent Short Term Repo facility, launched last week, which offers an unlimited quantity of reserves at Bank Rate each Thursday.”

This is a breaking news story, please check back later for more.

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California stimulus checks: Inflation relief payments go out this week. See when you’ll get paid

October 6, 2022 Admin Leave a comment

Millions of qualifying Californians will receive up to $1,050 as part of the state’s Middle Class Tax Refund program starting this week. The first round of payments are set to go out Friday.

Approximately 23 million taxpaying California residents are eligible to receive the payments, with smaller payments going to higher earners.

The payments, which are technically tax refunds, are meant “to help address rising costs,” according to Gov. Gavin Newsom’s office.

Newsom and state lawmakers reached a deal for the refunds back in June, when gas prices were shattering records at or above $7 a gallon.

Are you eligible?

To be eligible, you must have filed your 2020 tax return by last October and make less than $150,000 per year. If you are eligible, there is no action to take. You will receive a payment automatically without an application process.

To calculate your payment, go to the state’s website and click on “Middle Class Tax Refund.”

When will you receive your payment?

According to the California Franchise Tax Board website, eligible Californians will receive their payment via direct deposit issued to their bank accounts or via a debit card sent in the mail.

Direct deposit payments are expected to be issued to bank accounts during these windows: Oct. 7, 2022 – Oct. 25, 2022 and Oct. 28, 2022 – Nov. 14, 2022.

State officials said they expect about 90% of direct deposits to be issued in the month of October 2022.

Debit cards are expected to be mailed between Oct. 25, 2022 – Dec. 10, 2022, with the rest receiving the card by Jan. 15, 2023.

State officials said they expect about 95% of all payments – direct deposit and debit cards combined – to be issued by the end of this year.

So who will get paid by direct deposit, and who will receive a debit card?

Generally, direct deposit payments will be made to eligible taxpayers who e-filed their 2020 CA tax return and received their CA tax refund by direct deposit. The remaining eligible taxpayers will receive their payments in the form of a debit card, according to the California Franchise Tax Board website.

You will receive your payment by mail in the form of a debit card if you:

Filed a paper return
Had a balance due
Received your Golden State Stimulus payment by check
Received your tax refund by check regardless of filing method
Received your 2020 tax refund by direct deposit, but have since changed your banking institution or bank account number
Received an advance payment from your tax service provider, or paid your tax preparer fees using your tax refund

The CNN Wire contributed to this report.

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Business

Global Stocks Rise as China Signals Stimulus for Shanghai

May 30, 2022 Admin Leave a comment

International stocks rose Monday, extending a rally that has pared some of this year’s losses, while U.S. markets were closed for the Memorial Day holiday.

The Stoxx Europe 600 added 0.6%, led by shares of technology and luxury-goods firms. Germany’s DAX gained 0.8% and London’s FTSE 100 edged up 0.2%.

Global markets were boosted by the looming relaxation of some Covid-19 curbs in China. Shanghai’s Vice Mayor Wu Qing said over the weekend that authorities will loosen the conditions under which companies are able to resume work this week, and the city’s government laid out a 50-point plan for accelerating the economic recovery. The measures include tax cuts for businesses and subsidies for purchases of electric vehicles, the official Xinhua News Agency said.

Futures for the S&P 500 gained 0.6% by noon ET. The U.S. stock market is due to reopen Tuesday, as is the Treasury market. Yields on government bonds retreated from their 2022 highs in the run-up to Friday’s close, helping lift stocks after a weekslong drubbing. The S&P 500 snapped a seven-week losing streak Friday and posted its biggest weekly gain since November.

Still, some money managers caution that the pickup in stocks and bond prices may be a short-lived blip in a longer-running retreat. They say most of the factors that have contributed to this year’s losses—the war in Ukraine, higher interest rates set by the Federal Reserve and a slowing economy—are still in place.

“We are about to see a bear-market rally—or are in the midst of it,” said Daniel Egger, chief investment officer at St. Gotthard Fund Management.

Mr. Egger said yields will begin to rise again and that forecasts for corporate earnings are too high, while profit margins are under pressure from high commodity prices. “This doesn’t bode well for stocks,” he said.

On the economic front, data showed inflation accelerating in major European economies. Germany’s annual inflation rate hit 8.7% this month, according to preliminary figures, the quickest pace since 1973. In Spain, consumer prices rose 8.5% on the year, up from the 8.3% rate recorded in April.

Shares of European luxury-goods companies that have tapped into Chinese demand benefited from the prospect of lighter-touch lockdowns.

Hermès International

gained 3.9% and

Compagnie Financière Richemont

rose 2.9%.

L’Oréal,

the French personal-care company, gained 2.1% and

LVMH Moët Hennessy Louis Vuitton

added 2.6%.

In commodity markets, benchmark Brent-crude futures rose 1.2% to $116.90 a barrel and touched their highest level in more than two months. Leaders of European Union members are due to meet Monday and Tuesday, after diplomats over the weekend failed to strike a deal on sanctions that would limit imports of Russian oil.

Global stock markets were broadly higher on Monday.

Photo:

peter parks/Agence France-Presse/Getty Images

In Asia, the Shanghai Composite Index added 0.6% and Hong Kong’s Hang Seng jumped 2.1%.

In China, companies that serve Chinese consumers registered some of the largest advances. Hot-pot restaurant chain

Haidilao International Holding Ltd.

, brewer

China Resources Beer

(Holdings) Co. and sportswear company

Li Ning Co. Ltd.

, surged between 8.2% and 11% in Hong Kong.

Chinese internet stocks built on a rally from late last week, as the Hang Seng Tech Index rose 3.9%. The food-delivery giant

Meituan

jumped 6.8%. Chinese e-commerce platform

Pinduoduo Inc.

, whose stock trades in the U.S., on Friday reported better-than-expected quarterly profit and revenue, after similarly strong results from

Alibaba Group Holding Ltd.

and

Baidu Inc.

Investors are hopeful that China is past the worst of its Covid-19 wave in terms of lockdown severity and case numbers, said

Michael Metcalfe,

head of macro strategy at State Street Global Markets. That would lessen one of the forces pushing the world economy into a period of low growth and high inflation, he said.

Nonetheless, Mr. Metcalfe said, inflation remains elevated in both Europe and the U.S., maintaining the pressure on central banks to raise interest rates. “There’s nothing that we see in the current inflation trend that gives us any confidence,” he said.

Write to Joe Wallace at joe.wallace@wsj.com and Dave Sebastian at dave.sebastian@wsj.com

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Lawmakers consider pump relief stimulus

March 24, 2022 Admin Leave a comment

Tennessee Rep. Tim Burchett weighs in on a path toward a stronger U.S. energy sector on ‘The Evening Edit.’

Lawmakers are proposing ways to provide some relief at the pump as record-high gas prices hit drivers in the wallet.

It could come in the form of a stimulus check, similar to the pandemic relief program.

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That’s one idea pitched by House Democrats, according to FOX 59.

The Biden administration briefly considered sending out gas cards through the IRS.

The average price for a regular gallon of gas stood at $4.24 nationally on March 22, according to AAA.

Reps. Mike Thompson of California, John Larson of Connecticut and Lauren Underwood of Illinois are calling for an energy rebate of $100 per month for individuals or $200 for couples for each month the national gas price exceeds $4 per gallon.

Californians are dealing with the nation’s highest gas prices. Democratic Gov. Gavin Newsom rolled out a proposal on Wednesday, a plan that could provide a tax break, free rides on public transit and up to $800 on debit cards to help pay for fuel.

JAMIE DIMON CALLS FOR DEVELOPMENT OF DOMESTIC GAS AND ENERGY RESOURCES: A NEW ‘MARSHALL PLAN’

The money would go to everyone who has a car registered with the state. For people who don’t have cars, Newsom wants the state to pay for their bus or train fare for three months, according to the Associated Press.

Connecticut lawmakers have moved closer toward temporarily suspending the state’s 25-cent-per-gallon excise tax on gasoline in a bipartisan effort to ease the pain at the pump for motorists. (AP Photo/Douglas Healey, File).

Two other proposals depend on profits from oil companies.

KEMP SIGNS LAW SUSPENDING GEORGIA GAS TAXES THROUGH MAY

Oregon Rep. Peter DeFazio’s proposal calls for families to receive a monthly tax credit. The measure would come from a one-time tax on oil companies.

“Big Oil will pay a one-time, 50 percent windfall profit tax on any adjusted taxable income (ATI) in 2022 that exceeds 110 percent of their average ATI during pre-pandemic levels between 2015-2019,” said DeFazio.

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An earlier proposal from Rep. Ro Khanna of California and U.S. Sen. Sheldon Whitehouse of Rhode Island, calls for a quarterly rebate with the money raised by taxing oil companies.

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Business

China cuts key rates, stepping up monetary stimulus effort to underpin economy

January 20, 2022 Admin Leave a comment

A man checks phone at Lujiazui financial district in Pudong, Shanghai, China March 14, 2019. REUTERS/Aly Song

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SHANGHAI, Jan 20 (Reuters) – China stepped up its monetary easing efforts to prop up a slowing economy this week by lowering a set of key policy rates and lending benchmarks, and markets believe Beijing could ease further before growth bottoms out.

With the property downturn seen persisting into 2022 and fast-spreading Omicron variant dampening consumer activity, many analysts expect more easing measures will be necessary, despite other major economies, including the United States, appearing set to tighten their monetary policies this year.

The one-year loan prime rate (LPR) was lowered by 10 basis points to 3.70% from 3.80%. And the five-year LPR was reduced by 5 basis points to 4.60% from 4.65%, the first reduction since April 2020.

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The LPR cuts were expected after official comments called for more monetary easing to prop up the broad economy.

All 43 participants in a snap Reuters poll predicted a cut to the one-year LPR for a second straight month. Among them, 40 respondents also forecast a reduction to the five-year LPR rate. read more

The cut to the 5-year LPR suggested that “the Chinese authorities are keen to lower the cost of credit lending, so the total credit growth is expected to rebound after the Spring Festival to ease the pressure on macro economy,” said Marco Sun, chief financial analyst at MUFG.

“China’s monetary policy still has some room for easing in the first half of this year, depending on the policy transmission effect and the growth target set by annual parliamentary meeting in March.”

China’s central bank “should hurry up, make our operations forward-looking, move ahead of the market curve, and respond to the general concerns of the market in a timely manner,” People’s Bank of China Vice Governor Liu Guoqiang said on Tuesday, heightening market expectations for more stimulus to help economic stability. read more

Sheana Yue, China economist at Capital Economics, expects a further 20 basis point cut to the one-year LPR during the first half of this year.

Liu’s comments followed unexpected cuts to borrowing costs for short- and medium-term loans this week, after December economic data showed further weakening in consumption and the troubled property sector, both major growth drivers. read more

Interest rates on medium-term lending facilities (MLF) now serve as a guide to the LPR. Market participants believe moves to the LPR should mimic adjustments to MLF rates.

Most new and outstanding loans in China are based on the one-year LPR. The five-year rate influences the pricing of mortgages.

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Reporting by Winni Zhou and Andrew Galbraith; Editing by Muralikumar Anantharaman, Christopher Cushing and Gerry Doyle

Our Standards: The Thomson Reuters Trust Principles.

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Business

Fed charts faster course away from unprecedented stimulus

December 18, 2021 Admin Leave a comment

The Federal Reserve is pivoting hard from a patient approach to pulling back support for the U.S. economy.

Fed officials on Wednesday charted a much faster return from the unprecedented stimulus they deployed at the onset of the coronavirus pandemic than they’d initially planned. The bank’s policymaking committee announced it would aim to end its monthly purchases of Treasury and mortgage bonds by March, and expects to hike interest rates roughly three times by the end of 2022.

The Fed has held off on reducing stimulus even as inflation rose for much of this year. Millions of workers remained on the sidelines for more than a year and officials were reluctant to cut support, expecting more Americans to return to work as the pandemic eased and fiscal stimulus faded.

But Fed officials have acknowledged they no longer have time to hold out for a mass return to the labor market with inflation reaching its highest level in more than 40 years.

“The reality is we don’t have a strong labor force participation recovery yet, and we may not have it for some time,” Fed Chair Jerome PowellJerome PowellGet ready for a larger-than-expected interest rate spike in 2022 The Hill’s Morning Report – Presented by Charter Communications – Dem wheels wobble on BBB train; Fed rate hikes in ’22 On The Money — Presented by Citi — Manchin stalemate leaves Biden bill on the brink of collapse MORE said at a Wednesday press conference following the December meeting of the Federal Open Market Committee (FOMC), which sets monetary policy.

“At the same time, we have to make policy now and inflation is well above target. So this is something we need to take into account,” he continued.

By slashing interest rates to near-zero levels in March 2020, buying trillions of dollars in bonds, and deploying billions in emergency loans, the Fed helped power a surprisingly strong recovery from the worst economic shock in a century. The jobless rate dropped to 4.2 percent in November, growth is on track to exceed 5 percent, and layoffs have fallen to the lowest level in more than 50 years.

The Fed’s response — along with more than $5 trillion in fiscal stimulus and the breakthrough of mRNA coronavirus vaccines — was a key force behind a far faster recovery than many economists anticipated.

Even so, the pace of that rebound has overwhelmed supply chains with intense demand for goods and stoked inflation higher. At the same time, the labor force participation rate remains 1.5 percentage points below its pre-pandemic level.

Typically after a major economic shock, “there aren’t enough jobs and people can’t find jobs and we’re stimulating demand and trying to get demand to come up. That’s not the problem here. The problem is a supply-side problem,” Powell said Wednesday.

Consumer spending has risen above pre-pandemic levels, but remains disproportionately focused on goods instead of services and activities with more face-to-face exposure. As spending surged in the face of the virus, manufacturers, suppliers, shipping companies and retailers steadily raised their prices while constrained by port bottlenecks, raw material and component shortages, and staffing issues in critical industries.

As inflation rose, the Fed had faced growing pressure from Republican lawmakers and even some prominent Democrats, such as former Treasury Secretary Larry Summers, to halt stimulus before the economy began to overheat. But Powell and Fed officials had urged patience in the face of what they called “transitory” inflation, insisting supply chain snarls and lagging labor force participation driven by the pandemic would soon begin to ease.

“[The Fed] could have been right if the supply side of the economy was able to respond faster and stronger,” said Adam Ozimek, chief economist at Upwork, who warned in June the bank could face pressure as stimulus-boosted demand ran up against supply constraints.

“It’s clear that the fiscal stimulus pushed demand faster than the economy could handle and kept it tilted towards the more-inflationary goods sector,” he continued.

Powell, like many economists, has acknowledged drastically underestimating how long pandemic-related supply issues would last and how high they would stoke inflation.

Inflation as measured by the Commerce Department’s personal consumption expenditures index without food and energy prices — the Fed’s preferred gauge of price growth — rose 0.4 percent in October and 4.1 percent annually.

The median estimate among FOMC officials for year-end inflation rose to 4.4 percent, according to projections released Wednesday, up from an estimate of 3.7 percent in September.

“It’s clear they’re paying attention,” said Christopher Russo, a research fellow at George Mason University’s Mercatus Center, a libertarian-leaning think tank.

“Inflation has quite obviously remained well above what forecasters at the Fed and in the private sector and elsewhere have been forecasting, and so they’re adapting policy.”

Powell said Wednesday that while he had hoped for labor market participation to catch up as federal unemployment benefits expired and schools reopened, the U.S. now faces risks from stimulating an economy quickly bumping up against its maximum potential during the pandemic.

The Fed chief said that a September string of strong jobs reports, major increases in earnings and steep increases in consumer prices prompted concerns about inflation rising beyond the grip of the pandemic.

“The risk of higher inflation becoming entrenched has increased,” Powell said, adding it’s “not high at the moment.”

“Part of the reason behind our move today is to put ourselves in a position to be able to deal with that risk,” he continued.

After forcing Powell’s hand, the persistence of the pandemic could still throw another wrench into the Fed’s pivot.

Economists are still unsure how the emergence of the omicron variant could affect the pace of the recovery and inflation. While the delta variant slowed job growth, particularly in service sector industries, inflation rose sharply as cash-flush consumers pivoted back to goods purchases.

A steep coronavirus-driven decline in consumer activity could take some pressure off of inflation and allow the Fed to move ahead slower. More supply chain snarls could push the Fed in the opposite direction.

“I’m not concerned the Fed is going to cause a recession. I am concerned the Fed is going to slow things down,” Ozimek said.

“And after decades of the Fed leaning on slowing things down too much. I’m worried about more of that. I think we need to be in a hurry and get back to full employment.”

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Business

If You Invested Your 3 Stimulus Checks In Bitcoin, Dogecoin Or Ethereum, Here’s How Much It’d Be Worth Today – Tesla Motors (TSLA)

September 26, 2021 Admin Leave a comment

In 2020, the Coronavirus Aid, Relief and Economic Act provided payments of $1,200 to eligible adults and another $500 for those with qualifying children.

The CARES Act was the first of three rounds of stimulus payments for Americans since March 2020.

The Tax Relief Act of 2020 in December declared additional payments of $600 per eligible adult and up to $600 for those with qualifying children.

The American Rescue Plan Act of 2021 provided an additional $1,400 payment to eligible adults and up to $1,400 for those with qualifying children.

The stimulus money was used by Americans for various items, including helping offset increased expenses or lower income due to the COVID-19 pandemic. Others saved the money or invested it.

Here is a look at the return a consumer would have had if they put their stimulus checks ($1,200, $600 and $1,400) into leading cryptocurrencies like Bitcoin, Dogecoin and Ethereum on the respective dates of April 11, 2020, December 29, 2020, and March 12, 2021.

Stimulus Checks in Bitcoin: Investing in Bitcoin (CRYPTO: BTC) with a portion of stimulus checks may have been a popular option for investors and people looking to store some of the payment from the US government.

Bitcoin traded at $6,926 on April 11, 2020, $27,370 on December 29, 2020 and $57,996 on March 12, 2021. A person who put all $3,200 from the stimulus checks into Bitcoin would have been able to purchase a total of 0.219 of the cryptocurrency. Based on a price of $42,588.24 for Bitcoin today, that $3,200 would now be worth $9,326.

Related Link: How To Invest In Cryptocurrency With Your Stimulus Check

Stimulus Checks in Dogecoin: The meme cryptocurrency known as Dogecoin (CRYPTO: DOGE), which has gained interest and value thanks to support from people like Tesla Inc (NASDAQ:TSLA) CEO Elon Musk, was also a place some people put their stimulus checks.

Dogecoin traded at $0.0020 on April 11, 2020, $0.0046 on December 29, 2020 and $0.0570 on March 12, 2021. A person who put all $3,200 from the stimulus checks into Dogecoin would have been able to purchase 754,996 Dogecoin. Based on a price of $0.2079 today, that $3,200 would now be worth $156,963.

Stimulus Checks in Ethereum: One of the fastest growing cryptocurrencies in 2021 is Ethereum (CRYPTO: ETH), thanks to its connection to non-fungible tokens.

Ethereum traded at $161.17 on April 11, 2020, $737.95 on December 29, 2020 and $1,839.50 on March 12, 2021. A person who put the $3,200 into Ethereum would have been able to purchase 9.02 of the coins. Based on a price of $2,906.61 for Ethereum today, that $3,200 investment would now be worth $26,218.

Stimulus Checks In All 3 Cryptocurrencies: A more diversified approach from an investor could have seen investments in Bitcoin, Dogecoin and Ethereum. Splitting the $3,200 into equal investments of the three cryptocurrencies on the respective stimulus payout days would have given an investor .0731 Bitcoin, 251,665 Dogecoin and 3 Ethereum. The three cryptocurrencies would be worth $64,154 today based on equal investments from the three stimulus checks.

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4th Stimulus Check Update: These states are set to receive their first checks

September 18, 2021 Admin Leave a comment

Even though a fourth stimulus check might not be coming directly from the US government, states up and down the country are taking steps to support their citizens by introducing stimulus checks of their own.

Due to the economic despair brought upon by COVID-19 and the subsequent government measures imposed on the back of it, state financial aid is considered by many as a welcome relief with the job market in tatters.

Various stimulus checks are either being prepared or debated in the US, while plenty of money has already being sent. In such times, families across the US are eager to find out who qualifies for such aid, which is why we’ve taken a look at what various states’ stance is on the matter.

Here comes a look at the states where stimulus checks are either being prepared or debated, or where money is already being given out to residents. We’ll also explain how to qualify for these fourth stimulus checks.

Stimulus Checks status – Stimulus Updated List

Despite the deadline for sending out the money being set for December 31, various states are already in the process of sending out checks where they are most needed. Below, we run through the various states and explain the situation regarding stimulus checks in each.

Alaska

Residents in Alaska may qualify for some additional money through the Federal State Extended Benefit program, which could bring another 13 to 20 weeks of checks. This, though, is only possible for certain residents and it depends on how much of this pot of money has already been claimed. Furthermore, Alaskans are waiting for updates regarding what will happen with the annual oil wealth checks.

Arkansas

The situation in Arkansas is still very much up in the air, with the Arkansas state government currently involved in a legal battle with its own residents over the end of the federal unemployment benefits that were worth 300 dollars per week. Until that battle is resolved, any talk of a fourth check is likely to have to wait.

California – Golden State Stimulus

Right now, the state of California is the only one that has sent a stimulus check from their own money in the form of the Golden State Stimulus, as the state has a budget surplus due to their tax system. Residents earning 30,000-75,000 dollars a year are entitled to 500 or 600 dollars, as well as 500 dollars to be paid to households with dependent children. (Read more about the California stimulus). Beginning on September 17, these Golden State Stimulus payments have begun to be sent out to eligible citizens across California, however if you are expecting to receive the check via mail, these will be sent from October 5.

Colorado

People who received at least one unemployment payment between March 15, 2020, and October 24, 2020, will receive 375 dollars. However, those on higher incomes who qualified for more than 500 per week in employment benefits will not be eligible.

Florida Stimulus checks

Most teachers and administrators were allocated a 1,000 dollar payment, though things are still in development.

Georgia Stimulus

Georgia’s plan is generous, and full-time teachers and administrators will pocket 1,000 dollars, while part-time teachers will take 500 dollars. Pre-K educators will also likely have payments to claim.

Maryland

All state and local taxes on unemployment benefits have been repealed, and stimulus payments of 500 dollars for families and 300 dollars for individuals who filed for the Earned Income Tax Credit were also passed in the legislation.

Mississippi

Mississippi was one of the first states where the unemployment benefits stimulus payments ended early and there are currently no plans for more stimulus checks to be paid out. This is one of the states where a fresh round of payments looks unlikely.

Michigan

In a bid to boost the locals’ economic situation in Michigan, the state has started to send 500 dollar hazard pay bonuses to their teachers.

New Mexico

In New Mexico, theere is a program that plans to distribute five million dollars to residents who didn’t qualify for the federal payments.

New York

In New York, there is a 2.1 billion dollar fund for undocumented workers who were unable to claim financial aid via the federal stimulus. In order to qualify, you will need to be a resident of the state and have made less than 26,208 dollars in 2020.

Tennessee

Checks of 1,000 dollars will be sent to teachers, labelled as hazard pay bonuses, and part-time teachers will get 500 dollars.

Texas

Nothing state-wide has been confirmed, but Fort Worth and Arlington will increase the pay of district employees by four percent. Denton and Mansfile will increase pay by two percent, while Denton employees will also be given a bonus of 500 dollars. In Irving, a 2,000 dollar payment will be given to staff who return to classrooms in September.

West Virginia

In West Virginia, there are more than 7,700 unclaimed stimulus checks, Child Tax Credit and others.

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Business

Dow Jones Futures: Stock Market Rally Falls On Fed Comments, Stimulus Fears; Lululemon, RH, GME Stock Are Earnings Movers

September 9, 2021 Admin Leave a comment

Dow Jones futures fell slightly Wednesday night, along with S&P 500 futures and Nasdaq futures, with Lululemon, RH and GME stock among the big overnight movers. The stock market rally retreated Wednesday, with growth names among the hardest hit, but housing, industrial, steel and retail names also retreated.

The major indexes fell amid semi-hawkish comments from a Fed official on reining in monetary signs, as well as signs that further fiscal stimulus could be far less than forecast. But IBD Long-Term Leaders such as Microsoft stock and Idexx Labs (IDXX) held up well.

Key Earnings

RH (RH), Lululemon Athletica (LULU), Copart (CPRT) and original meme stock GameStop (GME) reported earnings after the close.

Academy Sports (ASO) reports before Thursday’s open. ASO stock fell 3.85% to 43.40 on Wednesday, but closed above the official 42.85 buy point.

RH and Lululemon beat views and raised guidance. GameStop reported a wider-than-expected loss but beat on sales. Copart earnings and sales topped.

RH stock rose 1% overnight after recently undercutting its 50-day line. RH closed up 1.3% after falling more than 2% intraday.

LULU stock shot up 14% in extended trade, signaling a record high, after closing down for a sixth straight session.

GME stock tumbled 9% in overnight action after edging lower Wednesday. GameStop stock has been consolidating since its early June peak and more broadly since its late January surge to 483. Before the close, AMC Entertainment (AMC), another “traditional” meme stock, said it’s working on a possible partnership with GameStop. AMC stock fell modestly after closing down 1% Wednesday.

CPRT stock edged higher following better-than-expected Copart earnings. Shares rose 1.2% to 144.67 on Wednesday. Copart stock is finding support at its 50-day line. The official buy point is 149.16 from a flat base. But a rebound from the 50-day line, perhaps getting above some short-term resistance, would offer an early entry.

Long-Term Leaders

CPRT stock is on IBD Long-Term Leaders. Buying off the 50-day/10-week line is a good place to start a position in a Long-Term Leader.

Fellow Long-Term Leaders Idexx Labs (IDXX) and Pool Corp. (POOL) rose Wednesday, rebounding from around their 50-day or 10-week lines.

Microsoft (MSFT), another Long-Term Leader, rose 1 cent to 300.21, rebounding from its 21-day line as it drifts off highs. MSFT stock effectively has a three-weeks tight with a 305.94 buy point. Ideally, Microsoft stock would trade tight until the 10-week line catches up, perhaps forming a new flat base.

Domino’s Pizza (DPZ), a former Long-Term Leader that still shares a lot of those traits, rose modestly from its 50-day line Wednesday and broke a short downtrend, offering an early entry. DPZ stock is working on a flat base.

In addition to Long-Term Leaders, Microsoft stock is on IBD Leaderboard. Domino’s was Wednesday’s IBD Stock Of The Day.

The video embedded in this article reviewed Wednesday’s market action and analyzed Crocs (CROX), Shopify (SHOP) and DPZ stock.

Dow Jones Futures Today

Dow Jones futures fell 0.2% vs. fair value. S&P 500 futures and Nasdaq 100 futures retreated 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

Stimulus Concerns

St. Louis Fed President James Bullard told the Financial Times that he still favors beginning a bond taper program this year. Fed chief Jerome Powell, Bullard and several other Fed policymakers in late August backed a tapering program by year-end. But last week’s weak jobs report raised expectations that the Fed would not agree on such a plan at the September policy meeting.

Bullard, one of the more hawkish policymakers recently, is not an FOMC voting member this year. Wednesday’s afternoon lukewarm Beige Book report from the Federal Reserve reinforced views that the economic outlook has downshifted. The IBD/TIPP Economic Optimism Index, released Wednesday morning, tumbled 5.1 points in early September to a 12-month-low 48.5.

Meanwhile, Sen. Joe Manchin, a centrist Democrat from West Virginia, said late Tuesday that he supports only $1.5 trillion in spending out of President Biden’s proposed $3.5 trillion package. Democrats need his vote to pass their latest big tax-and-spending plan. Further, if House progressives aren’t happy, they could try to sink a bipartisan $1 trillion infrastructure bill. So while the odds still favor hefty, if scaled-back, new spending, there’s now a more-than-zero chance that nothing passes by year-end.

Stock Market Rally

The stock market rally fell back amid those monetary and fiscal stimulus concerns, though a mild retreat didn’t need any trigger. The major indexes did close off lows.

The Dow Jones Industrial Average fell 0.2% in Wednesday’s stock market trading. The S&P 500 index dipped 0.1%. The Nasdaq composite dipped 0.6%. The small-cap Russell 2000 slumped 1.1%.

The 10-year Treasury yield fell four basis points to 1.33% after rising eight basis points in the prior two sessions.

A lot of stocks that had been running up fell back, including recent IPOs. But several growth stocks that had struggled to make progress suffered notable losses.

DocuSign (DOCU) fell 3.4%, and is starting to lose sight of its 50-day line. DOCU stock tumbled 6% on Tuesday, more than wiping out Friday’s bullish gain. Meanwhile, SHOP stock sank 3.8% and SQ stock 4.2%, both knifing below their 50-day lines.

Meanwhile, Pulte Group (PHM) cut guidance, citing supply chain woes. PHM stock tumbled 6%, with Lennar (LEN), Toll Bros. (TOL) and others selling off.

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Top ETFs

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 1.6%, while the Innovator IBD Breakout Opportunities ETF (BOUT) gave up 1.1%. The iShares Expanded Tech-Software Sector ETF (IGV) dipped 0.6%, with MSFT stock a top holding. The VanEck Vectors Semiconductor ETF (SMH) retreated 1.3%.

SPDR S&P Metals & Mining ETF (XME) skidded 2.3% and Global X U.S. Infrastructure Development ETF (PAVE) lost 0.3%. U.S. Global Jets ETF (JETS) retreated 1.5%. SPDR S&P Homebuilders ETF (XHB) shed 0.9%, with RH stock a major component. The Energy Select SPDR ETF (XLE) fell 1.3% and the Financial Select SPDR ETF (XLF) edged down 0.2%.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) declined 2.8% and ARK Genomics ETF (ARKG) 2.4%. ARKK fell back below its 50-day and 200-day lines. ARKG undercut its 50-day line. Square stock is a notable ARK Invest holding.

Five Best Chinese Stocks To Watch Now

Market Rally Analysis

After rebounding over the prior three weeks, the stock market rally had a setback Wednesday. The Dow Jones and small-cap Russell 2000 tested their 50-day lines on Wednesday. The Nasdaq retreated, though from all-time highs. The S&P 500, just above its 21-day line, is not far from record levels either.

There were notable losses among growth, housing and commodity-related stocks.

What exactly is working? Microsoft stock and some Long-Term Leaders such as Copart are acting well. Shipping stocks are looking strong.

Tesla (TSLA) was little changed, holding in a buy zone. Fellow giants Apple (AAPL), Facebook (FB), Google (GOOG) and Nvidia (NVDA) still look solid, despite Wednesday’s slim losses. Hot IPOs had a down day, but generally remain in strong uptrends.

Still, market leadership remains narrow.

What To Do Now

The stock market rally hasn’t set off any alarm bells. But with the major indexes near highs, some leading stocks taking losses and few buying opportunities available, investors may want to be somewhat defensive in the short run. Investors might be cutting exposure automatically by exiting losing trades or taking partial profits in some recent winners, while largely avoiding new buys.

A market pause or pullback could quickly offer new buying opportunities. So keep working on watchlists. Beyond Long-Term Leaders and tech giants, make sure to keep an eye on a variety of sectors. Some areas that are struggling right now could quickly turn into winners, including chips, housing, industrial and financial plays.

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.

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China’s central bank keeps the brakes on economic stimulus

September 8, 2021 Admin Leave a comment

People walk past the headquarters of the People’s Bank of China (PBOC), the central bank, in Beijing, China September 28, 2018.

Jason Lee | Reuters

BEIJING — China’s central bank policymakers pushed back Tuesday on expectations they would take aggressive measures to boost economic growth.

“China’s monetary policy remains within a normal range,” said Pan Gongsheng, a vice governor at the People’s Bank of China and head of the State Administration of Foreign Exchange.

He added that China would not embark on large-scale, flood-like stimulus. That’s according to a CNBC translation of his Chinese remarks released on the central bank’s website.

The Shanghai composite was little changed as of the end of the Wednesday morning trading session, after two straight days of gains of more than 1% each.

The yield on China’s 10-year government bond traded near 2.86%.

Nomura’s chief China economist, Ting Lu, noted that the yield on China’s 10-year government bond had ticked higher to 2.87% from 2.85% late Tuesday as markets interpreted additional policymaker comments “as a signal of less monetary easing.”

“Current conditions may not require as much liquidity as before to keep money market interest rates operating stably,” Sun Guofeng, head of the central bank’s monetary policy, said, according to a CNBC translation.

Sun added the central bank has “sufficient tools” to ensure market liquidity.

China’s central bank uses a variety of measures, rather than one primary rate, to implement monetary policy. The PBoC cut the reserve requirement ratio, the amount banks need to hold on reserve, in July for the first time since April 2020. However, a benchmark interest rate, the loan prime rate, has remained the same for 16-straight months.

Last week, the top executive body, the State Council, said the central bank would release an additional 300 billion yuan ($46.5 billion) for banks to loan to small and medium-sized businesses.

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Global stock markets were broadly higher on Monday.

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