|Day's Range||2,988.17 - 3,021.72|
|52 Week Range||2,191.86 - 3,393.52|
On Tuesday, stocks finished higher, though they pared gains after Bloomberg report late in the session that the U.S. was considering sanctioning Chinese officials and firms over new national security efforts imposed on Hong Kong.
Dr. Vivian Lee, Verily Life Sciences President of Health Platforms weighs in on utilizing technology for healthcare solutions and breaks down how technology can detect coronavirus cases.
Nela Richardson, Edward Jones Investment Strategist, joins Yahoo Finance's Alexis Christoforous and Brian Sozzi to discuss overall markets and what she is keeping a close watch on.
The Dow Jones futures were lower late Tuesday following the coronavirus stock market rally. Five top stocks near buys include Alphabet and Apple.
(Bloomberg) -- Asian stocks looked set for a mixed start after Bloomberg News reported the Trump administration is considering sanctions on Chinese officials, another sign of deteriorating Sino-American relations. The dollar and Treasuries retreated.Futures in Japan and Hong Kong were flat, while contracts in Australia retreated. S&P 500 futures dipped after the gauge closed at an 11-week high, but gave up almost half its earlier gains in the final half hour of trading with chipmakers exposed to China tumbling. The report suggested that the Treasury Department could impose controls on transactions and freeze assets of Chinese officials and businesses for implementing a new national security law that would curtail the rights and freedoms of Hong Kong citizens. The yen fluctuated.The latest economic data had showed that the easing of lockdown restrictions is boosting economic activity in the U.S. Investors are now contending with an increase in hostilities between the world’s two largest economies that could threaten global trade at a delicate time for a world recovering from the coronavirus pandemic.“The narrative for markets is shifting somewhat, with hopes associated with the easing of lockdown measures in many countries and still very exaggerated hopes of a vaccine being found short-term, needing to be balanced against escalating U.S./China tensions,” said Marc Ostwald, chief economist and global strategist at ADM Investor Services.Elsewhere, crude oil retreated and gold was steady.Here are some key events coming up:Thursday brings the U.S. jobless claims reading for the week ended May 23.Federal Reserve Chairman Jerome Powell participates in a virtual discussion on Friday.These are the main moves in markets:StocksFutures on the S&P 500 Index dipped 0.2% as of 7:28 a.m. in Tokyo. The gauge added 1.2% on Tuesday.Futures on Japan’s Nikkei 225 were little changed in Singapore.Hang Seng futures earlier closed flat.Futures on Australia’s S&P/ASX 200 Index fell 1.1%.CurrenciesThe Bloomberg Dollar Spot Index sank 0.9%.The yen was at 107.57 per dollar.The offshore yuan held at 7.1450 per dollar.The euro bought $1.0980.BondsThe yield on 10-year Treasuries added four basis points to 0.70%.CommoditiesWest Texas Intermediate crude slid 0.5% to $34.16 a barrel.Gold was at $1,711.25 an ounce.For 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.
Stock futures were little changed Tuesday evening at the start of the overnight session, taking a pause after the S&P 500 closed out at its highest level since March 5.
The Federal Reserve should remove ceilings on its purchases of corporate bond exchange-traded funds to deliver on market expectations that it would scoop up hundreds of billions worth of such debt to keep credit flowing to a broad spectrum of U.S. companies during the pandemic.
Shares of Goodyear Tire & Rubber (NASDAQ: GT), American Axle & Manufacturing (NYSE: AXL), and Tenneco (NYSE: TEN), all automotive parts suppliers and manufacturers, each jumped over 14% at one point Tuesday, following positive economic data that's renewing optimism for a reopening economy. The idea of states reopening more of their economies is a huge positive for the broader automotive industry. There were more positive data points: New home sales unexpectedly increased in April, and consumer confidence moved higher after two months of sharp declines -- all great news for the broader automotive industry, which has been hit hard by COVID-19.
Sundar Pichai, chief executive of Google parent Alphabet Inc. , is penciling in July 6 as the date to reopen offices for employees who choose to return, according to a note he sent employees Tuesday. The initial wave would make use of roughly 10% of building capacity, with a goal of 30% capacity by September. Those who wish to remain working from home can expense up to $1,000 for equipment and furniture, Pichai told employees in a note Tuesday. "Assuming external conditions allow, we'll start to open more buildings in more cities," a Google spokesperson said, quoting from Pichai's note to employees. "This will give Googlers who need to come back to the office - or, capacity permitting, who want to come back - the opportunity to return on a limited, rotating basis (think: one day every couple of weeks, so roughly 10 percent building occupancy)." Shares of the search-engine giant are up 6% this year. The broader S&P 500 index is down 7.4% in 2020.
Stocks surged Tuesday as positive sentiment over the reopening economy and vaccine development lifted spirits. Sales of new homes trounced expectations in April.
The U.S. index of consumer confidence rose slightly in May to 86.6 from a revised 85.7 in the prior month, the Conference Board reported Tuesday.
U.S. stocks finished higher Tuesday, but off session highs, as investors return from a long weekend emboldened by fresh coronavirus vaccine news and signs that global economies are crawling back from the pandemic shutdown.
Keysight Technologies Inc. shares sank 7% in after-hours trading Tuesday after the maker of electronics test and measurement equipment and software reported fiscal second-quarter results that badly missed Wall Street estimates. Keysight reported net income of $71 million, or 37 cents a share, compared with net income of $153 million, or 80 cents a share, in the year-ago quarter. Adjusted earnings were 78 cents a share, down from $1.22 a share a year ago. Revenue tumbled 18% to $895 million from $1.09 billion a year ago. "While supply chain disruptions dampened our revenue performance during the second half of the quarter, which includes April, our results demonstrated the resiliency of our operating model and durable cash generation as we reached a record cash balance of $1.8 billion," Keysight Chief Executive Ron Nersesian said in a statement announcing the results. Analysts surveyed by FactSet had expected adjusted earnings of $1.14 a share on sales of $1.064 billion. Keysight shares are up 0.8% this year. The broader S&P 500 index is down 7.4% in 2020.
DEEP DIVE (Updates story with closing prices for airline stocks.) Investors are pouring money into airline stocks as the government eases restrictions on social activity and travel. Below is a list of U.
U.S. Treasury yields rise Tuesday as global stock-markets take on an upbeat tone at the start of the U.S. holiday-shortened week amid signs that more economies were on the path to easing lockdown measures and restarting growth.
U.S. stocks closed sharply higher Tuesday as markets focused on evidence of the global economy reemerging from COVID-19 shutdowns and some signs of progress on the race for a vaccine. The Dow Jones Industrial Average rose 530 points, or 2.2% to close around 24,995 and the S&P 500 index gained 36 points, or 1.2% to finish the session near 2,992. The Nasdaq Composite index rose 16 points, or 0.2%, to close at about 9,340. Sentiment was buoyed by news that Novavax Inc. had started human trials of a COVID-19 vaccine. Also fueling gains were recent data showing U.S. air travel has risen and evidence that restaurants and freight trucking were seeing greater demand. Airline stocks surged Tuesday, with the US Global JETS ETF gaining 11.2% on the day, led by shares of Delta Air Lines Inc. , United Airlines Holdings, Inc. and American Airlines Holdings Inc. , all of which posted double-digit gains. The session was also colored by evidence of a rotation out of what has been a defensive technology sector into cyclical names that benefit during economic recoveries. Financial stocks posted the biggest gains on a sector basis, with the Financial Select Sector SPDR Fund rising 5.3% on the day.
(Bloomberg) -- U.S. stocks rose, but closed sharply off their highs after Bloomberg News reported that the Trump administration is considering sanctions on Chinese officials, threatening to escalate tensions between the world’s two largest economies.The S&P 500 ended up 1.2% at an 11-week high, giving up in the final half hour of trading almost 50% of gains that topped 2%. Stocks had soared earlier as investors poured back into risk assets on speculation the worst of the economic hit from the pandemic has passed. Megacap tech shares in the Nasdaq 100 fell on the day, while chipmakers exposed to China tumbled at the end of the session.Traders spent much of the day pouring into riskier pockets of the market as they played catch-up to a rally that pushed socks higher by as much as 35% from March lows, even as news over the long weekend brought signs of mounting tension with China. That bid faded after the report that the Treasury Department could impose controls on transactions and freeze assets of Chinese officials and businesses for implementing a new national security law that would curtail the rights and freedoms of Hong Kong citizens.Fresh economic data had showed that the easing of lockdown restrictions is boosting economic activity. The contours of the gains, with small-caps and energy shares leading, suggest investors who doubted its staying power are now targeting areas that have lagged behind so far. Large-cap tech shares, the group that lifted stocks from pandemic lows, trailed Tuesday.While economic data is still awful by virtually any historic comparison, a consensus among investors is building that the worst from the pandemic is over, easing fear that the rally was a bear trap destined to come undone. Now they will also contend with an increase in China tension that could threaten trade at a delicate time for the global recovery.Elsewhere, the Stoxx Europe 600 Index advanced, with travel stocks surging on reports that Germany plans to lift travel warnings for 31 European countries. The U.K. also announced steps toward getting back to business, sending the pound up by the most in almost a month.Japan led the equity advance in Asia as the world’s third-largest economy reopened, and shares rose in Hong Kong, which showed signs of stabilizing after weekend unrest. Treasuries slid after the three-day U.S. weekend, alongside Germany’s government debt.While investors’ spirits are being lifted by economic reopenings, there are also mounting signs that coronavirus infection rates are moderating. The Japanese government ended its nationwide state of emergency Monday, while Germany recorded a decline in the number of new virus cases. Signs that more euro area stimulus is on the way is also helping support the appetite for risk.“The narrative for markets is shifting somewhat, with hopes associated with the easing of lockdown measures in many countries and still very exaggerated hopes of a vaccine being found short-term, needing to be balanced against escalating U.S./China tensions,” said Marc Ostwald, chief economist and global strategist at ADM Investor Services.The euro strengthened ahead of negotiations this week on the form of a bloc-wide recovery fund. WTI crude oil advanced to around $34 a barrel on hopes the market may rebalance after historic output cuts.Here are some key events coming up:Earnings continue with companies including British Land, Royal Bank of Canada and HP Inc.Thursday brings the U.S. jobless claims reading for the week ended May 23.Federal Reserve Chairman Jerome Powell participates in a virtual discussion on Friday.These are the main moves in markets:StocksThe S&P 500 Index added 1.2% at 4 p.m. New York time.The Russell 2000 rose 2.8% and the Dow Jones Industrial Average jumped 2.1%The Stoxx Europe 600 Index climbed 1.1%.The MSCI Asia Pacific Index surged 2.3%.The MSCI Emerging Market Index surged 1.8%.CurrenciesThe Bloomberg Dollar Spot Index sank 1%.The euro rose 0.97% to $1.0991.The British pound surged 1.2% to $1.234.The Japanese yen strengthened 0.2% to 107.54 per dollar.BondsThe yield on 10-year Treasuries added threebasis points to 0.69%.Germany’s 10-year yield climbed seven basis points to -0.43%.Britain’s 10-year yield rose four basis point to 0.21%.Japan’s 10-year yield rose one basis point to 0.008%.CommoditiesWest Texas Intermediate crude gained 2.1% to $33.93 a barrel.Gold futures weakened 1.6% to $1,725 an ounce.For 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.
Many people missed out on the rapid 35% S&P 500 V-shaped recovery these past 2 months and with state economies reopening, investors fear they will miss out on a further upside in the stock market
Managers of hedge funds and mutual funds are worlds apart on a lot of investing decisions, but do have some overlap. Investors may be able to learn from both.
(Bloomberg) -- The megacap safety trade that has ruled stocks for months is slowly giving way to a broader embrace of risk among investors captivated by tentative signs of a turn in the economy.Small-cap stocks are back in vogue for hedge funds. ETFs tracking economically sensitive sectors are seeing large cash infusions. And investors are bailing from groups that had led the rally previously, among them health care.The positioning is a lens into broader market psychology, with everyone from tiny retail investors to institutions scrambling to get in front of economic reports they’re increasingly convinced show the economy has bottomed. A data dashboard tracked by Bloomberg is showing stabilization or slight improvements in mortgage applications, airline trips and filings for jobless benefits.“That’s where the opportunity is because those are the parts of the market that haven’t participated as much,” said David Spika, president of GuideStone Capital Management, which has about $12.5 billion under management. “The fear of missing out is definitely a big factor in this.”While economic data is still awful by any historical comparison, among investors, a consensus is clearly building that the worst is over. The positioning explains days like Tuesday, when the S&P 500 jumped 1.6% and an index of small caps rose 3.5%. With big groups like tech and health care holding steady, gains in more speculative categories are fueling a second leg of the recovery rally that has restored $6 trillion to share values since the March bottom.Companies, industries, and equity styles that were pummeled in the sell-off roared back after the holiday weekend. United Airlines Holdings Inc., Royal Caribbean Cruises Ltd and MGM Resorts International all surged at least 12% Tuesday. The KBW Bank Index jumped nearly 10%, the most since March 24, the day after stocks bottomed. A Dow Jones market neutral index of value stocks that reflects a portfolio that goes long the cheapest stocks and shorts growth shares rose almost 4.5% in its best day since at least 2002.The most famous benchmarks also felt the shift, with the Dow Jones Industrial Average, whose venerable Old Economy names have been a major drag on its returns, handily beating the S&P 500 and Nasdaq 100 on Tuesday. The Russell 2000 index of small-fry stocks is beating the S&P 500 by more than 3 percentage points this month, the most since May 2018.“People get more confident and look for things that haven’t made a move,” said Sandy Villere, portfolio manager at Villere Balanced Fund.Read more: Tracking the Recession -- High Frequency DashboardTo Jefferies’s Steven DeSanctis and Eric Lockenvitz, there’s historical precedent for these areas of the market to outperform once a recovery begins. With GDP set to sharply rebound next year, smaller companies could get a bigger boost both in earnings growth as well as returns, the strategists wrote in a note. Over the last 10 recessions, small caps have beaten large nine times, with average returns of 37% one year after the economic downturn ends versus 21% for large, they said.At Morgan Stanley Wealth Management, Lisa Shalett also favors cyclicals over defensives and value over growth plays. Shalett, the firm’s chief investment officer, says consumers could prove more resilient than expected, and recommends taking profits in high-flying names and rotating toward laggards. What matters for investors is the direction and rate of change of data, not the absolute levels, she wrote in a note.“Inflections and positive surprises in the macroeconomic data are quickly factored into earnings estimates, separating leaders from laggards,” she said. “In that vein, we expect the biggest positive surprises and rates of change to occur in classic early-cycle, consumer-related sectors.”ICYMI: The Myth of Oligarchic Dominance in the S&P 500 Recovery TradeHedge funds are starting to position for a comeback, too. After scaling back their short exposure in the Russell 2000 Index since late April, they turned long small-caps last week, data compiled by the Commodity Futures Trading Association released on Friday show. Speculators were short the group for nine consecutive weeks.Though exchange-traded funds tracking small-cap stocks have seen outflows this year due to their heightened credit risks, they could draw inflows from investors anticipating a recovery, according to Bloomberg Intelligence’s strategists including Morgan Barna. Already, Vanguard’s small-cap growth ETF, which goes by the ticker VBK, has seen nine straight weeks of inflows. Investors have also thrown money at funds tracking economically-sensitive sectors, with materials on track for the best month of inflows since November.Meantime, pockets that stood to benefit in recent weeks, including health care, are getting shunned. State Street’s health care fund XLV lost about $595 million last week in what was its largest weekly outflow since March 2019, Bloomberg data show.“The gains have been made so people are looking for somewhere else to rotate to, to the next area of recovery,” said Bob Phillips, managing principal at Spectrum Management Group.To Phillips, the fact that more areas of the market are participating in the recovery is a positive signal. “That’s broadening out the recovery across more and more stocks,” he said. “It adds to the overall breadth of the economy.”(A prior version of this story corrected the day of week to Tuesday in paragraphs four and six.)For 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.
(Bloomberg Opinion) -- Something strange happened in the U.S. stock market on Tuesday.No, it wasn’t that the S&P 500 crossed 3,000 for the first time in almost three months, generating a yelp of joy from the White House and groans from Wall Street veterans who remain perplexed at the seeming disconnect between financial markets and the American economy.Rather, the most unusual part of the latest rally is that bank shares clearly led the advance. As of last week, Bloomberg’s 18-company S&P 500 Banks Index was down more than 40% in 2020, trailing the broader stock market by an almost unprecedented degree since the coronavirus pandemic shut down the world’s largest economy. However, the index soared 9% on Tuesday, far and away a bigger gain than any of the other 23 industry groups. A simple ratio of this bank index to the broad S&P 500 shows the extent to which financials have been beaten down so far in 2020 relative to other segments of the stock market. The gauge fell on May 13 to a level seen only twice before in data going back three decades, both in March 2009. The banks swiftly rebounded in the following months as the U.S. recession officially drew to a close in June of that year.As investors weigh the drastic gains on Wall Street against the backdrop of widespread unemployment and shuttered small businesses on Main Street, the performance of bank stocks may prove to be a crucial barometer of whether markets can sustain their exuberance. Few analysts dispute that shares of financial companies are cheap on a relative basis — but sometimes prices are depressed for good reasons. Inexpensiveness alone isn’t a compelling enough reason to expect banks to bounce back as they did in 2009. Instead, perhaps more than any other industry, a lasting rally will come down to investors’ conviction in a sharp and sustained economic recovery.Investors have a few obvious reasons to be wary of U.S. banks. For one, long-term interest rates are near record lows while traders have started to wager on negative short-term rates, even as Federal Reserve officials repeatedly question the policy. All this points to lower net interest income, a crucial metric that reflects the spread between what a company earns on its loans and what it pays on its deposits. Meanwhile, large banks have already halted share buybacks, and minutes from April’s Federal Open Market Committee meeting revealed that policy makers are debating whether they should also restrict their ability to pay dividends to shareholders during the pandemic.Whether those downsides merit a $1 trillion wipeout, akin to the 2008 financial crisis, is not so clear cut. As Bloomberg News’s Lu Wang and Felice Maranz reported, at that time the financial industry’s earnings worsened for eight consecutive quarters, but analysts only expect profit declines to last half as long this time around. Banks are broadly considered to be well capitalized — certainly much more than they were 12 years ago when they had to be bailed out by the government. JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon expressed confidence in mid-April, when the outlook was even more uncertain than today, that the biggest U.S. bank can handle “really adverse consequences.” He said on Tuesday that the U.S. could see a “fairly rapid recovery.”“The government has been pretty responsive, large companies have the wherewithal, hopefully we’re keeping the small ones alive,” he said at a virtual conference hosted by Deutsche Bank AG.It’s far too soon to declare an “all clear” on the economy, but it’s starting to look as if actions from the Fed and Congress at least helped the U.S. clear the low bar of avoiding the worst-case scenario. The numbers are still awful, especially when it comes to unemployment, but data released Tuesday showed an unexpected increase in new-home sales in April compared with those a month earlier. Broadly, Citigroup Inc.’s economic surprise index is off its lows, indicating that recent figures aren’t quite as bad as analysts expected.“The economic data have been so darn grim lately with job losses in the tens of millions that the green shoots of optimism from better consumer confidence and new home sales are welcome,” Chris Rupkey, chief financial economist at MUFG Union Bank NA, wrote on Tuesday. “We still can’t see a V-shaped recovery, but at least this is looking like the shortest recession in history which will be measured in months not years.”If that’s the case, investors will likely look back on the past few weeks as a time when bank stocks became far too cheap compared with other parts of the market. Yet Tuesday’s seemingly huge rally still leaves financial companies worth far less than before the pandemic, and it seems reasonable to expect they’ll remain that way for a while. After all, it’s anyone’s guess just how many loans will end up going bad and saddle banks with losses. There are far more moving parts to JPMorgan’s bottom line than that of, say, Netflix Inc., which fell 3% on Tuesday, the most in almost a month.It’s never a good idea to read too much into one optimistic trading day, especially coming out of a U.S. holiday weekend in which many Americans probably got a taste of “normal” pre-pandemic activities. But on its face, Tuesday looks as if it could be something of a turning point for bank shares. The follow-through will indicate if they were just too cheap to pass up, or if the economy truly is on the mend.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The Dow Jones Industrial Average gained momentum in the stock market today while Google stock triggered a key buy signal.
The New York Stock Exchange has partly opened its floor trading on Tuesday, coming after a nearly two-month closure due to the coronavirus pandemic.