|Day's Range||29,131.95 - 29,300.32|
|52 Week Range||24,244.31 - 29,300.32|
Headlines moving the stock market in real time.
After more than a decade, Coca-Cola’s Powerade brand is stepping up its game with two new products.
Fastenal warned of weakness into the first half of 2020. Investors should pay attention to the industrial distributors results. They know industrial markets have been weak, but were waiting for a pickup in activity in the new year.
U.S. stock futures head higher Friday morning, setting the three main equity gauges up for new records in just the third week of the year, after data showed China’s economic growth picked up in December, though annual growth was the weakest in about three decades.
Dow Jones futures: The stock market rally keeps testing limits. Google parent Alphabet hit a $1 trillion market cap, joining Apple and Microsoft.
Stocks are looking to cap a big week with more gains. Google parent Alphabet and Gap shares are higher in premarket trading. Twitter stock, on the other hand, is down after an analyst downgrade.
Markets appear to be impressed by the substance of the U.S.-China trade deal, unveiled by President Trump at a White House signing ceremony Wednesday.
The Credit Suisse global strategy team’s annual surprise predictions include a surge in U.S. stocks and a bursting of the Chinese bubble.
Futures suggested the rally in U.S. stocks wasn’t about to stop soon, as data from China underscored optimism the global economy will continue to expand.
(Bloomberg) -- In the court of investor opinion, the verdict is in. The Federal Reserve is guilty of quantitative easing.Never mind that Chairman Jerome Powell tells everyone his efforts to shore up funding markets are “in no sense” QE. Try as policy makers may, they’ve lost the ability to convince people that Treasury purchases aren’t at least partially why the Dow Jones Industrial Average is up almost 4,000 points since late August.Sure, it’s all labels. If you want to call it QE, you can. Or not. If you want to ascribe the rally to Powell, that’s up to you. Certainly the Fed thinks it’s on solid ground. Rather than trying to drive down long-term interest rates to stimulate the economy, a la QE, it’s simply buying T-bills to keep the financial system’s plumbing in order.The problem for policy makers is that perceptions matter in shaping sentiment. If everyone believes central bank largess is pushing up prices, what happens in the market when it’s turned off?“Whether the Fed’s liquidity injection impacted directly the economy or the pricing of assets or not, it’s certainly true that a lot of people think it did,” said Jim Paulsen, Leuthold Group Inc.’s chief investment strategist. “Whether anything is going to change if the Fed takes it away doesn’t matter. If enough people feel it will, then it’s going to impact markets.”In October, the Fed began buying $60 billion of Treasury bills per month, a move policymakers deemed as a “purely technical” way to improve control over the benchmark interest rate they use to guide monetary policy. Monthly purchases of Treasury bills will extend at least into the second quarter of 2020, officials reiterated last month.“Growth of our balance sheet for reserve management purposes should in no way be confused with the large-scale asset purchase programs that we deployed after the financial crisis,” Powell said when the program started.Except, the market’s straight-up trajectory is muddying efforts to distinguish the new program from the old one. The S&P 500 has soared 16% since its low in August, including the best fourth-quarter rally in six years. Inconveniently for Powell, even his lieutenants say the reaction in stocks isn’t coincidental.Low interest rates, a belief there is a high bar to future increases and expansion of its balance sheet are helping to lift asset prices, according to Dallas Fed President Robert Kaplan. “All three of those actions are contributing to elevated risk-asset valuations,” he said Wednesday on Bloomberg Television. “We ought to be sensitive to that.”The ranks of market pundits who agree seems to expand every day. Since the Fed started buying T-bills, the S&P 500 has gone up by almost 1% for every 1% increase in the Fed’s balance sheet, Deutsche Bank observed.“So in that sense, Fed balance sheet expansion has at least been correlated with the increase in the stock market we have seen since October,” Torsten Slok, chief economist at Deutsche Bank AG, said in a Bloomberg Radio interview earlier this month.QE refers to the crisis-era policy to boost money supply and lower long-term borrowing costs. It helped pull the economy back from the brink of ruin after the financial crisis. Three rounds of easing programs helped the stock market too, coinciding with a fivefold rally in equities.Data compiled by Bloomberg Intelligence show prior balance-sheet expansions were correlated with stock market gains, too. Through the latest cycle, the S&P 500 notched an annualized gain when the balance sheet was getting bigger that was 5.4 percentage points more than when the central bank was not buying Treasuries, data compiled by Gina Martin Adams, Chief Equity Strategist at Bloomberg Intelligence, show. Every time the central bank has mentioned trimming its holdings, a major equity correction followed, she said.In 2011, hints from the Fed that it wouldn’t expand its asset purchase program preceded a 19% drop in the S&P 500. In 2015, talk of balance-sheet shrinkage came before a 12% decline. In late 2018, a comment about a balance sheet unwind on “autopilot” coincided with the near death of the bull market.Skeptics say equating quantitative easing with the current program, where the Fed buys short-term debt, is extreme, as is believing that $60 billion worth of monthly Treasury bill purchases (and sundry other stimulus) holds sway over the direction of a $30 trillion U.S. stock market. Nevertheless, the wind-down of monthly purchases is the biggest risk facing investors face in 2020, strategists at John Hancock Investment Management said in December.“Powell went out of his way to explain that it wasn’t QE, but it doesn’t really matter,” said Krishna Memani, former vice chairman of investments at Invesco. “The Fed is in a bind. Effectively with policy initiatives they have, they have to increase reserves, and investors are aware of that. They will be in that mode for the foreseeable future.”\--With assistance from Sarah Ponczek.To contact the reporter on this story: Elena Popina in Hong Kong at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Chris NagiFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Asian shares rose on Friday after data in China showed pressure on the world's second biggest economy may be starting to diminish. The news along with easing trade tensions with the United States underpinned riskier assets, even as some markets took a breather in late afternoon trade. European bourses were expected to extend the global rally after Wall Street posted more records.
China's economy grew at the weakest pace in three decades last year, data Friday confirmed, but solid December activity readings and bets on fresh stimulus from Beijing are helping Wall Street look to fresh record highs Friday.
World shares rose to record highs on Friday, buoyed by Chinese growth figures that suggested the world's second-biggest economy was stabilising. Riskier assets were in demand worldwide as the Chinese growth data, along with easing trade tensions with the United States, sent the MSCI world equity index up 0.2% and further into record territory. China's economy grew 6% between October and December last year.
Disney stock is near all-time highs as the media giant plows ahead. Here is what the fundamental and technical analysis say about buying Disney now.
Abigail Disney supports a bill in California that would increases taxes on companies depending on the gap between their highest paid executives and the rest of the workforce.
U.S. stocks, buoyed by upbeat news, powered ahead again on Thursday, after the Dow Jones Industrial Average closed above 29,000 for the first time on Wednesday.
U.S. stocks close higher again Thursday, with all three benchmark indexes ending at new records, following the signing of a trade truce between the U.S. and China on Wednesday, Senate approval of a new trade deal between the U.S., Mexico and Canada on Thursday, and healthy economic data and corporate earnings reports .
U.S. stocks on Thursday notched solid gains, with a late-session flourish deeper into record territory for good measure, one day after President Trump signed the first phase of a U.S.-China trade pact and on the day the Senate ratified a revised trade treaty between the U.S. Mexico and Canada. The Dow Jones Industrial Average rose 267 points, or 0.9%, to close around 29,298, the S&P 500 index gained 28 points, or 0.8% to end the session at roughly 3,317 and the Nasdaq Composite index rallied about 98 points, or 1.1% to close at 9,357. All three benchmarks finished at all-time highs. Investors have cheered the details of the U.S.-China trade pact, which includes promises by the Chinese to buy $200 billion in incremental exports from the U.S., and sentiment was also BUOYED by a new North American trade treaty, formerly known as Nafta, set to reach the president's desk. Economic data were also encouraging, with the government reporting that retail sales rose 0.3% in December, in line with expectations, and new applications for jobless benefits fell by 10,000 to near 50-year lows in the week ended Jan. 11. The Philly Fed manufacturing index also rose above expectations, while a survey of home builders showed confidence in the industry near 20-year highs. In company news, Morgan Stanley shares rose 7.1% after beating expectations for fourth-quarter earnings and revenue, while shares of Bank of New York Mellon Corp. tumbled 7.7% as investors balked at a fourth-quarter revenue miss and projections of rising costs in 2020.