|Day's Range||2,904.24 - 2,923.63|
|52 Week Range||2,346.58 - 3,027.98|
U.S. stocks fell Tuesday as investors awaited monetary policy signals from the Federal Reserve later this week.
U.S. stocks rallied Monday in an at least temporary reprieve after a mid-August rout. U.S. government bond yields rose across the curve, led by yields on 30-year bonds and 10-year notes. Yahoo Finance's Myles Udland, Andy Serwer, and Jen Rogers discuss.
Traders are also awaiting the Fed's Jackson Hole seminar and a Group of Seven summit this weekend for clues on what additional steps policymakers will take to boost economic growth. "Market expectations for Jackson Hole and the central banking community in aggregate are extremely dovish," said Brad Bechtel, managing director at Jefferies in New York.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Stocks fell and Treasuries climbed as investors assessed the latest news on trade talks and awaited more clues on monetary policy.The S&P 500 Index halted a three-day rally after U.S. Secretary of State Michael Pompeo told CNBC that Huawei Technologies Co. isn’t the only Chinese company that poses risks. He also sees the U.S. and China continuing their talks -- at least by phone -- over the next week or 10 days. Later Tuesday, President Donald Trump said he’s not ready to make a deal with China and cited the need for a “big” Federal Reserve rate cut. Benchmark 10-year yields slumped while the dollar dropped from this year’s high. Italian bonds jumped as Prime Minister Giuseppe Conte said he’ll resign.Just a day after markets cheered progress on trade negotiations, investors took a more cautious approach. Trump’s top economic adviser, Larry Kudlow, speaks with business leaders this week amid concerns about a recession, the trade war and whipsawing markets. Pacific Investment Management Co. has reduced its positions in government debt on bets that a breakthrough in U.S.-China trade talks could trigger a violent sell-off, the Financial Times reported. Traders are also gearing up for a keynote speech from Federal Reserve Chairman Jerome Powell in Jackson Hole on Friday.“It’s kind of a choppy environment,” Dan Skelly, head of equity model portfolios at Morgan Stanley Wealth Management, said in a phone interview. “The liquidity in August is going to be pretty poor, so that certainly in my view caps the potential upside, but it does raise the risk that you do have a more pronounced sell-off at some point.”Read: JPMorgan’s Kolanovic Sees Pivot Back to Stocks by End of AugustWall Street watchdogs rolled out a long-anticipated overhaul of the Volcker Rule that eases its controversial restriction on banks making speculative investments, wrapping up a top de-regulatory goal of officials appointed by Trump. Bank stocks led losses in the S&P 500.In corporate news, Home Depot Inc. surged after its results broadly cleared investor expectations -- or at least, were no worse than expected by Wall Street. Beyond Meat Inc. jumped after JPMorgan upgraded the stock to overweight from neutral. Baidu Inc. soared after the China-based Internet company unexpectedly reported revenue growth in its June quarter. Kohl’s Corp. fell on sales that fell short of expectations.Here are some notable events coming up:Minutes of the Fed’s July meeting will provide details on the discussions leading to the first interest-rate cut in a decade when they are released on Wednesday.Thursday brings the Bank Indonesia rate decision and press conference with Governor Perry Warjiyo.Flash PMIs are due for the euro area on Thursday.Kansas City Federal Reserve Bank hosts its annual central banking symposium in Jackson Hole, Wyoming, starting Thursday. Fed Chairman Jerome Powell will give remarks on Friday.Here are the main moves in markets:StocksThe S&P 500 fell 0.5% to 2,908.95 as of 2:34 p.m. New York time.The Stoxx Europe 600 Index dipped 0.7%.The MSCI Asia Pacific Index climbed 0.6%.CurrenciesThe Bloomberg Dollar Spot Index declined 0.3%.The euro rose 0.2% to $1.1102.The Japanese yen increased 0.3% to 106.28 per dollar.BondsThe yield on 10-year Treasuries declined five basis points to 1.56%.Germany’s 10-year yield decreased four basis points to -0.69%.Britain’s 10-year yield fell two basis points to 0.452%.CommoditiesThe Bloomberg Commodity Index climbed 0.1%.West Texas Intermediate crude rose 0.2% to $56.34 a barrel.Gold increased 0.3% to $1,516.70 an ounce.\--With assistance from Sybilla Gross, Andreea Papuc, Todd White and Laura Curtis.To contact the reporters on this story: Rita Nazareth in New York at email@example.com;Sarah Ponczek 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.
FIRE refers to the “financial independence, retire early” movement bubbling up in the younger generation these days as a pathway out of the grind — slash expenses, save a bundle and enjoy the freedom that approach ultimately allows. Using the name FluffayPenguin, one anonymous thirtysomething took to Reddit to illustrate his FIRE blueprint, which allowed him to graduate college in 2008 and build a small chunk of change all the way up to $930,000 in savings.
The Hayman Capital Management fund manager talked to CNBC about how monetary easing is catching fire around the world and will eventually bring U.S. interest rates all the way down to zero.
Big losses in energy, materials and financials make sense if investors are worried about a slowing economy. But consumer staples? Not so much.
U.S. stocks head modestly lower Tuesday as investors contend with worries about the strength of the U.S. economy and political developments in Europe that were weighing on government bonds.
(Bloomberg) -- U.S. equity investors who have been whipsawed for most of August can look forward to a reprieve in the next couple of weeks, JPMorgan Chase & Co.’s quant guru says.After Treasuries rose and the S&P 500 Index fell for three consecutive weeks, the divergence left fixed portfolios 2% underweight stocks, according to Marko Kolanovic, the bank’s head of macro quantitative and derivatives research. They’re likely to rotate back into equities to re-balance before the month is over, and that shift could push stocks 1.5% to 2% higher, he said.In a week when the key part of the yield curve inverted and recession fear sparked an equity rout, systematic strategies posted $75 billion of programmatic selling, more than half of which came from index option delta and gamma hedging, JPMorgan’s analysis found. The rout pushed hedge funds’ equity exposure to near record lows and that of trend-following and volatility-targeting funds to the 27th percentile relative to history. Such low positioning is a positive signal for stock performance, according to Kolanovic.“We expect some stabilization in market volatility as dealers’ gamma positioning is now close to neutral (from a sizable short position last week), and this may reduce volatility and marginally improve liquidity,” Kolanovic said in a note to clients on Tuesday. “Equity flows will to a large extent be driven by developments around trade, and hence the market will likely continue to be dominated by market disruptive tweets and announcements related to the trade war.”While economic and macro concerns were partly responsible for the recent market rout, they took a backseat to technicals. More than half of last week’s price action that first sent the S&P 500 reeling and then triggered an impressive rebound was convexity hedging of mortgages and variable annuities, according to Kolanovic. He echoed research of his colleagues led by Josh Younger, who last week said that convexity hedging has totaled roughly $90 million per basis-point move in bond yields since the end of last month.Mortgages have negative convexity, and for large investors that hold them, a drop in interest rates means the duration of these portfolios goes down. This leaves the holders scrambling to compensate by adding duration to their holdings.To contact the reporter on this story: Elena Popina in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, Richard Richtmyer, Dave LiedtkaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shares of Pilgrim's Pride Corp. shot up 5.3% toward a 19-month high in midday trading Tuesday, after BMO Capital turned bullish on the fresh and frozen chicken foods company, citing an "underlying fundamental recovery" and the expected positive effects of the African swine fever (ASF) outbreak in China. Analyst Kenneth Zaslow raised his rating to outperform from market perform and boosted his stock price target by 16% to $36. "Despite weak breast prices, chicken environment stabilizes with limited small bird production and strength in the back-end of the bird with the potential for greater improvement from more chicken promotions," Zaslow wrote in a note to clients. Also, he said it was "no longer a question of if, but when" ASF will help boost U.S. protein prices. And the U.S. beef production shortage should further support chicken prices. The stock, on track to close at the highest level since January 2018, has nearly doubled (up 97.8%) year to date, while the S&P 500 has gained 16.4%.
Wall Street's main indexes edged lower on Tuesday after three sessions of gains, as lower Treasury yields weighed on financial stocks, offsetting a boost from Home Depot's better-than-expected quarterly earnings. "Markets have been extremely strong over the past few days, so there is a little bit of profit taking," said Gary Bradshaw, portfolio manager with Hodges Funds in Dallas. "Home Depot's earnings show that people are continuing to invest in their homes, a positive for Wall Street and the U.S. consumer," Bradshaw said.
Technically speaking, the S&P 500 has extended its rally from major support, rising within striking distance of its third recent retest of the 50-day moving average, writes Michael Ashbaugh.
The three major U.S. stock market indexes hovered around level as investors appeared to be waiting on the latest minutes from the Federal Reserve on Wednesday and Chairman Jerome Powell’s speech on Friday in Jackson Hole, Wy.
The benchmark S&P 500 is now about 3.6% below its all-time high hit in July. Losses on the blue-chip Dow and the S&P 500 indexes were tempered by a 4.3% rise in Home Depot Inc.
Europe has a 70% chance of plunging into recession, according to renowned economist and bond market expert Mohamed El-Erian, with Britain, Italy and Germany “paralyzed” by domestic issues that have stalled the economies of the EU’s most powerful nations.
Shares of NuCana Plc fell 21% on Tuesday after the company announced it had suspended the enrollment of new patients in a late-stage trial of a pancreatic cancer drug. Researchers were studying the safety and efficacy of NuCana's drug Acelarin in patients with metastatic pancreatic cancer, comparing it with the chemotherapy treatment gemcitabine. An independent committee reviewed interim data from the Phase 3 study, found that the study was unlikely to reach its primary goal and recommended suspending recruitment, though patients who are deriving benefit from Acelarin will be allowed to continue treatment, NuCana said. Shares of NuCana have fallen 60.3% so far this year. The S&P 500 has gained 16.2%. (edited)
Shares of Medtronic PLC ran up 4.8% toward a record high in morning trading, to top the S&P 500's list of gainers, after the medical technology company reported second-quarter results that beat expectations and raised its full-year profit outlook. The stock was also the leading gainer within the SPDR Health Care Select Sector ETF . The stock has now run up 8.1% amid a 4-session win streak, which would be the best 4-day stretch since it ran up 10.2% in the four days ending Oct. 2, 2015. SVB Leerink analyst Danielle Antalffy said that despite a decline in the cardiac and vascular group business segment, which is Medtronic's largest by revenue, the company still delivered a total revenue beat, "which we think highlights the strength of [Medtronic's] broad-based business model." The stock has hiked up 20% year to date, while the health care ETF has tacked on 5.5% and the S&P 500 has advanced 16%.