|Day's Range||2,973.09 - 2,998.28|
|52 Week Range||2,346.58 - 3,017.80|
Earnings season is underway and corporate buybacks are set to boost earnings per share for S&P 500 companies.
U.S. stock indexes rose on Thursday after a sluggish start as comments from New York Fed President John Williams further cemented expectations for interest rate cuts from the U.S. central bank. Williams said that when rates and inflation are low, policymakers cannot afford to keep their "powder dry" and wait for potential economic problems to materialize. "He's toeing the party line at the Fed, basically implying that an insurance rate cut is the right thing to do for the economy at this point in time," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina, referring to Williams' comments.
U.S. stocks were up Thursday afternoon, recovering from morning losses, after New York Federal Reserve president John Williams said the Fed’s wises strategy is to cut interest rates at the first sign of economic distress when interest rates are already low.
(Bloomberg) -- U.S. stocks rebounded and the dollar fell after Federal Reserve Bank of New York President John Williams highlighted the need for swift action should policy makers conclude the economy is in trouble.The S&P 500 Index erased losses, led by consumer and financials stocks, while Treasury 10-year yields fell. A positive outlook from Apple Inc. supplier’s Taiwan Semiconductor Manufacturing Co.’s lifted chipmakers. The NYSE FANG+ Index slid after Netflix Inc. reported a drop in U.S. customers. A report that Iran made a “substantial” offer on its nuclear program in return for fewer sanctions gave a lift to equities that was later tempered by news that the U.S. Navy shot down an Iranian drone. Oil sank.Investors have fully priced in a quarter-point cut by the Fed later this month. While that’s the likeliest outcome, there’s also a “meaningful chance” of a half-point reduction, according to Pacific Investment Management Co. Companies are still struggling to pass on higher wages and tariff-related costs to customers, and the start of earnings season hasn’t improved sentiment.“We’re in a trade war, you’re seeing the impact on corporate earnings, you’re seeing the central banks forced to scramble to react to that,” Bob Michele, CIO and head of global fixed income at JPMorgan Asset Management, said in a Bloomberg TV interview.Elsewhere, oil tumbled amid signs of increased Russian crude output and continued nervousness over the global economy. The pound climbed as the British Parliament backed measures to prevent the next prime minister suspending the legislature to pursue a no-deal Brexit.These are the main moves in markets:StocksThe S&P 500 Index increased 0.3% to 2,994.27 as of 3:16 p.m. New York time.The Stoxx Europe 600 Index decreased 0.2%.The MSCI Asia Pacific Index fell 0.6%.CurrenciesThe Bloomberg Dollar Spot Index dipped 0.5%.The euro advanced 0.4% to $1.1272.The British pound jumped 0.9%.The Japanese yen gained 0.5%.BondsThe yield on 10-year Treasuries dipped one basis point to 2.03%.Germany’s 10-year yield declined two basis points to -0.31%.Britain’s 10-year yield was unchanged at 0.759%.CommoditiesThe Bloomberg Commodity Index dipped 0.8%.West Texas Intermediate crude declined 2.3% to $55.45 a barrel.Gold increased 1.5% to $1,444.80 an ounce.\--With assistance from Nancy Moran, Sophie Caronello, Todd White, Yakob Peterseil, Cecile Gutscher, Tom Keene, Nejra Cehic, Adam Haigh and Vildana Hajric.To contact the reporter on this story: Rita Nazareth in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jeremy Herron at email@example.com, Rita NazarethFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
When you invest in growth stocks, first learn to use IBD's relative strength line to confirm a stock's real power as it breaks out of any base.
U.S. stocks bounced higher Thursday afternoon, with the equity benchmarks climbing to session highs after New York Fed President John Williams said that the central bank should act quickly at the first sign of trouble in the economy. "When you have only so much stimulus at your disposal, it pays to act quickly to lower rates at the first sign of economic distress," Williams said, in a speech at a research conference in New York. The comments were read as putting the possibility of a more substantial reduction of benchmark rates at the end of the Fed's two-day gathering July 30-31. Federal-funds rates currently stand between 2.25%-2.50%, and the market is starting to increase bets that policy makers may cut rates by as much as half-a-percentage point rather than a more conventional 25 basis point rate cut. As the president of the New York Fed, Williams has a standing vote on the rate-setting Federal Open Market Committee. The Dow Jones Industrial Average was trading flat at 27,232, but trading in positive territory, while the S&P 500 index was trading 0.3% higher at 2,9934, and the Nasdaq Composite Index was advancing 0.2% at 8,205. Lower rates are seen as supporting buying in equities even if it implies that economy could be confronting some headwinds.
Shares of Hovnanian Enterprises Inc. plunged 14% in afternoon trading Thursday, after the home builder disclosed that it received a de-listing warning from the New York Stock Exchange, citing the market capitalization listing standard. Hovnanian said it received written notification of non-compliance on July 11, because the company's market cap averaged less than $50 million over a consecutive 30 trading-session period. The market cap declined to $43.59 million, after being above $50 million the previous 5 sessions, according to FactSet data. In the 30 sessions before July 11, market cap averaged $48.8 million. The NYSE's warnings comes after Hovnanian effected a 1-for-25 reverse stock split on March 29, after the stock closed March 28 at a pre-split-adjusted price of 55 cents. Hovnanian's stock has tumbled 57% year to date, while the SPDR S&P Homebuilder ETF has rallied 30% and the S&P 500 has advanced 19%.
RBC Capital Markets analyst Biraj Borkhataria worries that the company’s results will be hurt by weaker earnings in areas such as chemicals and refining.
Chico's Fas Inc. shares fell 4% in Thursday trading after the women's apparel and accessories company shut down its Fort Myers, Fla. corporate campus due to threat of an active shooter. "Local law enforcement and other emergency personnel were immediately notified, and are presently on site," Chico's said in a statement. "As a precaution, and consistent with existing security protocols and policies, all employees were notified of the situation in real-time. A lockdown of all facilities has been initiated, and employees at the site have been instructed by local law enforcement to shelter in place at a secure location." The company said that no actual shooter has been identified and the company is unaware of any injuries. Chico's stock has fallen almost 68% over the last year while the S&P 500 index is up nearly 6% for the period.
Wall Street's main indexes were set for their third day of losses on Thursday, as Netflix reported a surprise fall in U.S. subscribers in a downbeat start to results from high-growth companies. Losses in Netflix triggered a 1.58% fall in the communication services sector, one of the best-performing S&P sectors so far this year. As second-quarter earnings rolled in this week, the three main Wall Street indexes retreated slightly from record highs and are set for their steepest weekly fall in seven weeks.
STOCKSTOWATCHTODAY BLOG Sliding. Far better-than-expected data on manufacturing from the Philadelphia Fed failed to lift the major U.S. stock indexes as tech stocks took a hit from trade-war worries and earnings concerns.
Index funds managed by three firms will soon control more than one-third of all corporate voting shares, according to a research paper.
Financial conditions are crucial for economic activity because they often dictate the spending, saving and investment plans of businesses and families and an index (FCI) compiled by Goldman Sachs suggests an improving picture since the start of 2019 in the United States and worldwide. "Since June, financial conditions have been easing and in the United States they are back where they were at the start of the fourth quarter," said Sven Jari Stehn, head of Europe economics at Goldman Sachs. The easing was precipitated by the U.S. Federal Reserve's dovish pivot in January and while an escalation in Sino-U.S. trade tensions briefly sent the index higher in May, conditions loosened again in June as the Fed and European Central Bank re-ignited equity and bond market rallies by flagging rate cuts.
(TSLA)’s profits will suffer as it tries to meet its 2019 targets for deliveries, an analyst said Thursday. Tesla stock (ticker: TSLA) was down 0.7% to $253.13 on Thursday morning, while the S&P 500 was about flat. Needham’s Rajvindra Gill reiterated an Underperform rating on the shares, saying that improved manufacturing efficiency won’t be enough to sustain the company’s profit margins in the months ahead.
The Dow Jones Industrial Average midday Thursday was being yanked to session lows by a trio of components. Shares of UnitedHealth Group Inc. , Boeing Co. , and Walt Disney Co. were exacting a powerful 100-point drag on the blue-chip index, representing the lion's share of the modest declines in the price-weighted benchmark. The Dow was down 135 points, or 0.5%, at 27,089, while the S&P 500 index was sinking 0.3% lower at 2,975, with the Nasdaq Composite Index 0.5% lower at 8,143. A $1 move in any one of the Dow's components equates to a roughly 6.8-point swing in the index. UnitedHealth shares were down $6.75 at $259.90 a share, a decline of 2.5%, those for Boeing were off $5.83 to reach $363.57, a drop of 1.6%, while Disney's shares were edging 1.4% lower, off $2.03 at $140.52.
Wall Street's main indexes edged lower on Thursday as investors digested a slew of mixed earnings, while Netflix reported a surprise fall in U.S. subscribers in a downbeat start to results from high-growth companies. Losses in Netflix also dragged the communication services sector, one of the best-performing S&P sectors so far this year, 1.28% lower. As second-quarter earnings rolled in this week, the three main Wall Street indexes retreated slightly from record highs and are set for their steepest weekly fall in seven weeks.
Share of Akerna Corp. slumped 1.5% in morning trading Thursday, after the Denver-based software-as-a-service (SaaS) company focused on the cannabis industry disclosed a relatively large sale of common stock by a "certain selling stockholders." The stock pared earlier losses of as much as 10.2%. The company filed late Wednesday a registration statement for the resale of 6,699,766 shares of common stock, including 5,554,942 common stock, 901,074 common stock underlying options and 243,750 common stock underlying warrants. The sale would be valued at $88.1 million at the proposed maximum offering price of $13.15 a share. Akerna will not receive any proceeds from the offering. After the offering, the number of common stock outstanding will increase by 10.8% to 11,734,570 shares. The stock has still run up 33.4% over the past three months, while the AdvisorShares Pure Cannabis ETF has fallen 13.3% and the S&P 500 has gained 2.6%.
Cracks are appearing in the Netflix world-domination narrative and Wall Street analysts are starting to worry.
This is part two of a three-part series on retirement income planning. Part one addressed life expectancy assumptions, part two is about how inflation might impact your retirement and part three will be about a portfolio strategy designed to address those two variables. Inflation is more or less ignored by the average retiree despite the price of just about everything tripling during their working years.