|Day's Range||3,318.86 - 3,329.88|
|52 Week Range||2,612.86 - 3,329.88|
(Bloomberg) -- European stocks dropped alongside U.S. equity futures on Tuesday, tracking broad declines across Asia amid a series of negative developments in Hong Kong and worries about a deadly virus in China.The Stoxx Europe 600 Index fell a second day, with banks among the biggest losers after UBS Group AG missed key profitability and cost targets. Retailers also retreated, with luxury stocks suffering on concern the outbreak of a new respiratory virus in China will disrupt spending during a key holiday period. News of the illness spreading rattled Asian markets, with shares in Hong Kong hit particularly hard after a credit rating downgrade and a top official calling for new security legislation.Contracts on the three main U.S. equity benchmarks all pointed to a drop when Wall Street returns from the long weekend. The risk-off mood helped spur some traditional haven assets, with the yen and Treasuries advancing. The Chinese and South Korean currencies weakened. The pound turned higher after better-than-expected U.K. employment figures.Read more: China Virus Concern Hammers Asian Stock SentimentThe emergence of the illness in China is stirring memories of the SARS outbreak 17 years ago for some market watchers, though it’s not yet as serious. Still, easing trade tensions, a solid start to earnings season and signs global growth is bottoming have all combined to stoke stocks to multiple records this month; for many investors it may be time for a pause.“For the market, the more meaningful driver still remains the economic cycle and earnings momentum,” Fan Cheuk Wan, Asia chief market strategist at HSBC Private Bank, said on Bloomberg TV. “Based on previous experience we have come across during SARS, the impact of the virus is likely to be short-lived.”Elsewhere, the Bank of Japan kept policy unchanged as expected, though raised its economic growth forecast for 2020. Brent crude dipped below $65 a barrel as ample global supplies offset the loss of exports from Libya.Here are some events to watch out for this week:Companies including Netflix, IBM, Procter & Gamble and Hyundai will post results.Policy decisions are due from central banks in Canada, Indonesia and the euro zone.The World Economic Forum, the annual gathering of global leaders in politics, business and culture, is underway in Davos, Switzerland.These are the main moves in markets:StocksFutures on the S&P 500 Index declined 0.4% as of 10:22 a.m. London time.The Stoxx Europe 600 Index decreased 0.7%.The MSCI Asia Pacific Index fell 1%.CurrenciesThe Bloomberg Dollar Spot Index climbed 0.1%.The euro was little changed at $1.11.The British pound gained 0.3% to $1.3048.The Japanese yen strengthened 0.2% to 109.97 per dollar.BondsThe yield on 10-year Treasuries declined two basis points to 1.80%.Germany’s 10-year yield decreased one basis point to -0.22%.Britain’s 10-year yield fell less than one basis point to 0.643%.CommoditiesWest Texas Intermediate crude decreased 1% to $57.95 a barrel.Gold fell 0.3% to $1,556.06 an ounce.\--With assistance from Livia Yap, Eric Lam, Ranjeetha Pakiam and Cormac Mullen.To contact the reporter on this story: Sam Potter in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Sam Potter at email@example.com, Yakob Peterseil, Todd WhiteFor 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.
Futures: Earnings season is the the next test for the hot stock market rally. Netflix and Texas Instruments earnings are due Tuesday night.
The streaming service will give investors their first look at how its subscriber trends fared in a more competitive environment when it reports fourth-quarter earnings after the bell on Tuesday.
The outbreak of a deadly respiratory virus in China, which has claimed the lives of at least four people, has investors concerned for a SARS-like outbreak in the region ahead of this week's Lunar New Year celebrations, sending stocks lower in markets around the world.
(Bloomberg) -- U.S. stocks are due for a temporary pullback, according to Canaccord Genuity Group Inc.An excessive rally in technology shares and high level of optimism toward equities has spurred analysts Tony Dwyer and Michael Welch to cut their market view to neutral from positive.“Given the equity market’s run higher, the historic overbought condition of the market-leading sector, the new more positive consensus fundamental view” and “a trailing 12-month valuation of 20x for the S&P 500, we think the market is a tinderbox looking for a spark,” they wrote in a note to clients Monday.At 82, the weekly relative strength index for the info-tech sector has reached a historical extreme for only the fifth time since 1990, and the four previous instances led to an “an almost immediate peak,” the analysts said. Such tops tended to be temporary and the pair will look to switch back to a more bullish mode after any meaningful market sell-off, they added.U.S. shares have started the year strongly, registering a number of record highs. The S&P 500 has risen just over 3%, with the gauge’s information-technology sector up almost 6%.Canaccord is watching policy-maker comments from the World Economic Forum in Davos, Switzerland, as well as earnings reports for potential catalysts for a pullback.“This really isn’t that complicated a call,” the analysts said. “Info Tech has led the market to a position that is excessive and has generated temporary pullbacks in the past.”To contact the reporter on this story: Joanna Ossinger in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Christopher Anstey at email@example.com, Cormac Mullen, Cecile VannucciFor 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.
Global shares took a beating on Tuesday, wiping out all gains made at the start of the week as mounting concerns about a new strain of coronavirus in China sent a ripple of risk aversion through markets. Authorities in China confirmed that a new virus could be spread through human contact, reporting 15 medical staff had been infected and a fourth person had died. Safe-haven bonds and the yen gained as investors were reminded of the economic damage done by the SARS virus in 2002-2003, particularly given the threat of contagion as hundreds of millions travel for the Lunar New Year holidays.
“Because of the stiff competition to recruit and retain this talent, more companies are investing in their employees’ experiences at work,” says Amanda Stansell, senior economic research analyst at Glassdoor.
(Bloomberg) -- The U.S. dollar pared earlier gains on Monday after French President Emmanuel Macron and Donald Trump agreed not to impose tariffs in their digital tax dispute until at least the end of this year. Crude oil rose following supply disruptions in Libya and Iraq.European stocks edged lower and U.S. equity futures drifted on Monday as investors awaited a fresh batch of corporate earnings and some key central bank meetings this week. Activity was muted across most major markets because of a U.S. holiday. Contracts on the main American equity benchmarks trimmed earlier declines to trade little changed, while the Stoxx Europe 600 closed modestly down as losses in retailers offset gains for telecommunications companies. Shares advanced in most of Asia, but slumped in both Hong Kong and India. Most European bonds edged higher, while the pound was slightly weaker ahead of U.K. jobs data due tomorrow.The Bloomberg dollar index fell back to little-changed on the report Macron and Trump had agreed not to impose punitive tariffs. The two countries will continue talks, while the Organization for Economic Cooperation and Development, of which both France and the U.S. are members works on a framework for taxing tech companies. The euro reverted an earlier decline.Brent crude jumped back above $65 a barrel as unrest hit key production regions. Iraq temporarily stopped output at an oil field on Sunday, while Libyan production almost ground to a halt after armed forces shut down a pipeline.Jitters in the oil market seem to be tempering investor confidence after the signing of the initial Sino-American trade deal and positive economic readings from China and the U.S. helped lift sentiment last week. The IMF’s latest outlook gives traders more to mull over, with the Fund predicting the world economy will strengthen in 2020, albeit at a slightly slower pace than previously anticipated.Investors now turn their attention back to corporate earnings after solid results from the biggest banks on Wall Street. Key central bank meetings in Europe and Japan are also on the agenda.“We are entering 2020 on a more stable footing with economies globally stabilizing and looking like they’re turning up, and the phase one trade deal,” Anne Anderson, head of fixed income for Australia at UBS Asset Management, told Bloomberg TV in Sydney. “So it’s a bit more positive with regard to the economic fundamentals.”Here are some events to watch out for this week:Companies including Netflix, IBM, UBS, Procter & Gamble and Hyundai will post results.Policy decisions are due from central banks including Japan, Canada, Indonesia and the European Central Bank.The World Economic Forum, the annual gathering of global leaders in politics, business and culture, opens in Davos, Switzerland.These are the main moves in markets:StocksFutures on the S&P 500 Index were little changed at 4:47 p.m. New York time.The Stoxx Europe 600 Index decreased 0.1%.The MSCI Asia Pacific Index was little changed.The MSCI Emerging Market Index dipped 0.1%.CurrenciesThe Bloomberg Dollar Spot Index was little changed.The euro was little changed at 1.1096.The British pound was little changed at 1.301.The onshore yuan dipped 0.1% to 6.867 per dollar.The Japanese yen was little changed at 110.17 per dollar.BondsGermany’s 10-year yield declined less than one basis point to -0.221%.Britain’s 10-year yield climbed two basis points to 0.648%.Japan’s 10-year yield advanced one basis point to 0.003%.CommoditiesWest Texas Intermediate crude climbed 0.2% to $58.66 a barrel.Iron ore decreased 0.4% to $94.15 per metric ton.Gold gained 0.2% to $1,560.77 an ounce.\--With assistance from Cormac Mullen, Haidi Lun, Adam Haigh and Sebastian Boyd.To contact the reporter on this story: Yakob Peterseil in London at firstname.lastname@example.orgTo contact the editor responsible for this story: Sam Potter at email@example.comFor 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.
Delta Air Lines, whose stock is up nearly 29% over the past year (outpacing a gain of about 25% by the benchmark S&P 500 and a more modest ascent of less than 11.5% by the NYSE Arca Airline Index) and which most recently outperformed fourth-quarter analyst expectations, is sharing the wealth with employees, CNN reports. The Atlanta-headquartered airline, according to CNN, is diverting $1.6 billion of its $6.2 billion in total 2019 pretax income toward profit sharing, according to a release posted on the airline's website. Every eligible employee, according to the CNN report, will get a check next month for 16.6% of their annual pay. That, CNN adds, is the equivalent of two extra months' pay.
The U.S. stock market seems risky now because valuations are rich, as sentiment marches higher. Usually at such extremes, value stocks enter a sustained phase of outperformance — and that’s likely about to happen. “Ignore value at your peril,” says John Linehan, chief investment officer of equity at mutual-fund giant T. Rowe Price Group.
Lofty equity valuations of companies like Apple Inc were dangerous, Bernard, whose investments include Saudi Arabian gyms and Indian shoe maker Relaxo Footwears Ltd, said in an interview in the Reuters Global Markets Forum. Although the trend towards passive investing threatens the process of price discovery, it creates opportunities for investors willing to bet on overlooked stocks, Bernard said on the eve of the annual meeting of the World Economic Forum in the Swiss ski resort of Davos.
The S&P; 500 did almost nothing on the electronic exchange during the session on Monday as it was Martin Luther King Jr. Day in the United States, which means that the underlying index wasn’t trading.
What if investors have earnings season all wrong? Rather than being too optimistic, they are too pessimistic, argue strategists at investment bank JP Morgan.
Where is this stock market head in the coming days and weeks? That is the trillion-dollar question some nervous strategists, analysts and traders are wrestling with, following a relatively brisk rally for equities to kick off 2020.
While I spend many hours a day scouring through Forex charts, the charts related to these two markets have caught my eye.
The U.S. stock market has enjoyed a nearly uninterrupted assault on records, highlighted by the Dow Jones Industrial Average (DJIA) closing at a milestone above 29,000 for the first time and the S&P 500 (SPX) achieving its own landmark close above the psychological round-number at 3,300, while investors in the Nasdaq Composite Index (COMP) may have their sights trained on 10,000.
AT&T stock topped the S&P 500 in 2019, but Tocqueville Asset Management sees even more upside, buying more than a quarter million more shares in aggregate in the fourth quarter. Apple, Microsoft and Amazon are “much less contrarian” now.
(Bloomberg) -- JPMorgan Chase & Co. strategists believe analysts are starting 2020 with an overly negative outlook on earnings and say positive surprises will give a boost to global equities.Forecasts for the S&P 500’s earnings growth over the next two reporting seasons are below those seen in the second and third quarters of last year and are likely “too low,” JPMorgan strategists led by Mislav Matejka wrote in a note on Monday. Typically, fourth-quarter earnings are 3% to 4% higher than in the second quarter, instead of lower, they said.“As the year progresses, the optimistic earnings growth forecasts by the sell-side analysts would tend to be downgraded, but crucially without an adverse effect on stocks performance,” the strategists wrote. “What is much more unusual is that the EPS projections for the next two reporting seasons might be too low.”Global profit downgrades have been outpacing upgrades every week since April, according to Citigroup Inc.’s global earnings revision index, reflecting analysts’ concerns about the impact of trade wars and slower economic growth. This failed to derail a powerful rally in both U.S. and global equities last year thanks to the continuation of monetary easing by central banks and appealing valuations.One year ago, JPMorgan’s Matejka recommended being overweight U.S. equities within developed markets, citing better earnings growth relative to the rest of the world. His call turned out to be prescient as the S&P 500 soared 29% in 2019, beating a 25% jump in the MSCI World Index. At the end of September, Matejka reduced his preference for U.S. stocks in favor of euro-area equities.Although U.S. companies have just started reporting earnings, results so far are “encouraging,” with 28 S&P 500 firms posting 3% profit growth from a year earlier, according to JPMorgan. Looking back at the last three reporting seasons, which saw $1 to $2 upgrades coincide with a rally in equities, the strategists believe a similar scenario will play out again.Corporate earnings are likely to benefit from a potential peak in the dollar and a subsequent gain in commodity prices, they said. Macro data is also key to the success of profit reports, and the deceleration in global Purchasing Managers’ Index momentum is likely to stop and turn into an acceleration in the coming months, boosting earnings, according to JPMorgan.Among sectors, the strategists say commodity and luxury firms as well as semiconductors could beat earnings expectations, while staples may lag.To contact the reporter on this story: Ksenia Galouchko in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Blaise Robinson at email@example.com, Paul JarvisFor 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.
It's a shortened trading week, but that doesn't mean there's any less going on over the next four days. Between impeachment, the World Economic Forum, economic data and earnings season investors will have their hands full.
Martin Luther King Jr. Day honors the civil rights movement figure who gave the famous “I Have a Dream” speech. Wondering if the stock market is open today? U.S. stock markets won’t be open normal hours for MLK Day.
The tailwind from better than expected data continues to support equity markets as US stocks traded at record levels, and those in Europe notched new highs on Friday after Chinese growth data reassured investors over the health of the world’s second-largest economy.
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.25% on Monday after rising to its highest since June 2018. Japan's Nikkei gained 0.2% to near its highest in 15 months. U.S. corporate earnings this week include Netflix, Intel Corp and Texas Instruments, while the European Central Bank, Bank of Canada and Bank of Japan hold policy meetings.