|Day's Range||2,993.73 - 3,001.23|
|52 Week Range||2,346.58 - 3,027.98|
The Federal Reserve kicked off its two-day monetary policy meeting. The central bank is expected to make its decision on monetary policy tomorrow afternoon. Tiedemann Advisors CEO Mike Tiedemann joins Yahoo Finance's Julie Hyman, Adam Shapiro, Rick Newman, and Sibile Marcellus to discuss.
(Bloomberg) -- Treasuries rallied a day before the Federal Reserve is expected to cut interest rates while oil plunged on a report that suggested global supplies will remain robust. Crude gave back some of Monday’s 15% surge amid speculation that Saudi production will return to normal sooner than expected following the weekend drone attack on one of the world’s biggest oil facilities. The S&P 500 Index drifted between small gains and small losses, with consumer shares faring best and banks dragging on the gauge. Ten-year treasury yields fell toward 1.8% as the dollar weakened. The New York Fed conducted its first overnight system repurchase agreement in a decade after a surge in U.S. money-market rates.As U.S. policy makers get ready to decide interest rates, investors are also trying to gauge the risk of a potential oil shortage weighing on a global economy that already seemed to be slowing down. Meanwhile, concerns linger about trade tensions, with U.S. and Chinese working-level negotiators set to resume talks in the next week, before a meeting of top officials in October.The Saudi attack has reminded investors about the risks of geopolitical tensions escalating, according to Nela Richardson, an investment strategist at Edward Jones in St. Louis.“We’ve pointed to U.S. trade escalation, we’ve pointed to Brexit, but we’ve seen that over the course of the last two years, unexpected triggers of risk can pop up,” she said. “And we don’t always know where that’s going to come from.”The Stoxx Europe 600 edged lower. Equities in Shanghai and Hong Kong slid after China’s central bank disappointed investors when it refrained from lowering a key interest rate. Italian bonds fell after former Prime Minster Matteo Renzi left the Democratic Party, raising the prospect of further government instability. Emerging-market stocks headed for their first decline in five sessions.These are some key events to keep an eye on this week:The Federal Reserve is widely expected to lower U.S. interest rates in response to slowing global economic growth and muted inflation. Chairman Jerome Powell will hold a post-decision press conference Wednesday.The Bank of Japan monetary policy decision is on Thursday, followed by a briefing from Governor Haruhiko Kuroda.Bank Indonesia and Bank of England also decide policy on Thursday.Australia jobs figures are out Thursday.Friday is quadruple witching day for U.S. markets. When the quarterly expiration of futures and options on indexes and stocks occurs on the same day, surging volatility and trading can follow.Here are the main moves in markets:StocksThe S&P 500 Index fell 0.1% as of 1 p.m. New York time.The Stoxx Europe 600 Index slid less than 0.1%.The Shanghai Composite Index declined 1.7%.CurrenciesThe Bloomberg Dollar Spot Index fell 0.2%.The British pound rose 0.6% to $1.2502.The Japanese yen was little changed at 108.16 per dollar.The euro rose 0.6% to $1.1069.BondsThe yield on 10-year Treasuries declined five basis points to 1.8%.Germany’s 10-year yield rose one basis point to -0.48%.Britain’s 10-year yield was little changed at 0.69%.CommoditiesGold climbed 0.5% to $1,506.11 an ounce.WTI crude dropped 4.3% to $60.22 a barrel.\--With assistance from Gregor Stuart Hunter, Andreea Papuc and Laura Curtis.To contact the reporters on this story: Vildana Hajric in New York at firstname.lastname@example.org;Brendan Walsh in Austin at email@example.comTo contact the editors responsible for this story: Samuel Potter at firstname.lastname@example.org, ;Jeremy Herron at email@example.com, Brendan Walsh, Todd WhiteFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Technically speaking, the major U.S. benchmarks have weathered a September oil shock against a still comfortably bullish bigger-picture backdrop, writes Michael Ashbaugh.
The addition of chicken nuggets to the menu hurt margins initially, but management has adjusted to the change, Stifel analyst Chris O’Cull says.
Nordstrom fell 8.3% and Macy’s lost 4.3% as retailers got hit by fears of higher gas prices and a pullback from their recent gains.
U.S. stocks were little changed on Tuesday as investors moved to the sidelines ahead of the Federal Reserve's two-day policy meeting, while the impact of weekend attacks on Saudi Arabia's biggest oil refinery faded. Equity markets took a hit on Monday as the attacks wiped out half of Saudi Arabia's oil production, sending oil prices soaring, while fuelling geopolitical tensions. The energy index tracked a drop in oil prices, after recording its best one-day surge since January on Monday.
U.S. stocks pare early losses midday Tuesday but attempts by major equity benchmarks to move decisively higher are limited by weakness in the energy sector amid reports that Saudi Arabia may recover sooner than expected after a weekend attack on its energy complex that drove crude-oil futures to the sharpest single-session rally since the 2008 financial crisis.
It’s a yawner of a day, what with it sandwiched between the attacks on Saudi Arabia over the weekend and the Fed’s rate decision on Wednesday. that hasn’t stopped some old-style retailer from getting hit...hard
Deloitte's annual holiday retail forecast is calling for a 4.5% to 5% rise in 2019 holiday sales, with e-commerce expected to grow 14% to 18% year-over-year. Total sales are expected to exceed $1.1 trillion between November and January. E-commerce sales are expected to reach $144 billion to $149 billion. The government shutdown, increased consumer savings, and a stock market decline put a damper on December 2018 sales. "Based on a growth in consumer disposable income and spending indicators, retailers, across channels, should expect a strong holiday season in 2019," said Rod Sides, vice chairman of Deloitte. The Amplify Online Retail ETF is up 26.4% for the year to date. The ProShares Decline of the Retail Store ETF is up 0.1% for the period. The SPDR S&P Retail ETF has grown 4.3%. And the S&P 500 index has gained 19.7% in 2019 so far.
Stage Stores Inc. stock jumped 13.3% after its Tuesday announcement that it will shift "substantially all of its stores" to an off-price model. Stage Stores operates 625 stores under the Bealls, Goody's, Palais Royal, Peebles and Stage department stores. The company's existing 158 Gordmans stores are off-price. Based on the success of the conversions, the company will shift the remaining stores in February 2020. By the third quarter of fiscal 2020, Stage Stores plans to operate about 700 largely small-market Gordmans stores. Also in fiscal 2020, Stage Stores plans to close 40 stores. Stage Stores expects to spend about $30 million on the conversion. The company has converted 98 stores to off-price since 2018. Stage Stores stock has fallen by more than 50% over the last 12 months, but has rallied 30.2% in 2019. The S&P 500 index has gained 19.6% for the year to date.
Shares of Bloom Energy Corp. plunged 22% toward a record low, after short seller Hindenburg Research said it had uncovered an estimated $2.2 billion in undisclosed serving liabilities. "Bloom's tricky accounting allows it to mask servicing costs and shift write-downs to other periods, thereby avoiding recognizing major recent additional losses," Hindenburg wrote in a research note. "We believe that large debt maturities in 2020 and 2021, amounting to nearly $520 million, make Bloom Energy an obvious bankruptcy candidate." Bloom was not immediately available to comment. Hindenburg said that, once touted as the prospective "holy grail" of clean energy, Bloom's technology is "not sustainable, clean, green or remotely profitable." The stock is now trading at about 22% of its initial public offering price of $15. The company went public in July 2018, with the stock rising to a record close of $35.80 in September 2018. Last month, the stock had plummeted 43% after Bloom reported fiscal second-quarter results that beat expectations but provided a downbeat outlook. The stock has tumbled 67% year to date, while the S&P 500 has gained 20%.
U.S. stocks edged lower on Tuesday as a drop in oil prices weighed on the energy sector, while investors stayed away from making big bets ahead of the Federal Reserve's two-day policy meeting, where it is widely expected to cut interest rates. The U.S. central bank concludes its policy meeting on Wednesday, with traders currently expecting a 65.8% chance of a quarter percentage point cut from the Fed this week, down from 88.8% on Friday, according to CME's FedWatch. "It's just typical trading on the vigil of a Fed meeting," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
Bruce Linton has resurfaced, as the high-profile former co-chief executive of Canopy Growth Corp. has been appointed "Special Advisor" to Florida-based Better Choice Co. Inc. , an animal health and wellness CBD company. Better Choice's stock soared 21% in morning trading, with volume of 65,000 shares already about 13-times the full-day average. Linton, who was fired from Canopy in July, will be working to help expand Better Choice's cannabinoid (CBD) animal research, build out an internal intellectual property, data and analytics platform and explore strategic alternatives and partnerships. "Better Choice is focused and has access to funding to deliver research-driven outcomes in the animal health and wellness industry, as the Company develops a data- and research-driven approach to product development and efficacy within the cannabinoids-as-ingredients space," Linton said. The stock has now lost 55% year to date, while the ETFMG Alternative Harvest ETF has slipped 1.0% and the S&P 500 has gained 20%.
Heading into the weekend, a rate cut at the end of the September FOMC meeting tomorrow was all but assured. But then Saudi Arabia was attacked, oil prices jumped, and now we get to worry about whether that will give the Fed pause.
Home Depot stock weighed on the Dow Jones today and oil prices eased somewhat after Monday's spike.
Shares were lower on Tuesday, following a downgrade from Guggenheim, which worries that the home-improvement retailer’s forthcoming business investment cycle could tamp down the shares’ returns.
Shares of Splunk Inc. are up 2.4% in Tuesday morning trading after J.P. Morgan analyst Mark Murphy upgraded the stock to overweight from neutral, writing that the stock's price level is now attractive following a drop of about 19% from its July highs. "Subsequent to the material cash flow guide-down announced in August, we view street consensus as largely de-risked at this point," Murphy wrote. "We see potential for multiple expansion as investors start to view Splunk as a recurring/renewable revenue business at scale, aligned to data growth, with a strong competitive position and brand." Murphy has a $130 target price on the stock, which has gained 13% on the year as the S&P 500 has risen 20%.
Where will we go next remains the question, with a lot of uncertainty in the air. Stocks could enter a holding pattern for a bit here as people assess what’s going to happen next in the Gulf and wait for the Fed’s decision on rates tomorrow afternoon. Volatility hasn’t really moved much since late yesterday, with the Cboe Volatility Index (VIX) just below 15.
KEY WORDS The co-founder of Microsoft isn’t running for cover. Bill Gates told Bloomberg News that most of his assets are still invested in stocks. ‘I’m bullish on U.S. businesses, global businesses.
Stocks slipped modestly yesterday to start the week after an attack on Saudi Arabia’s oil facilities over the weekend. Despite the new geopolitical risks, the benchmark S&P 500 and tech-heavy Nasdaq were down only 0.3% for the session. The closely-watched CBOE Volatility Index (VIX) was up nearly 7% yesterday on the modest losses for the overall market, but remains below the $15 level.
Goldman Sachs strategists are laying out what different stocks in the energy space will be affected by surging oil prices following the attack on key Saudi Arabian oil facilities. Yahoo Finance's Scott Gamm joins The Final Round to break it down.