|Day's Range||2,916.01 - 2,946.52|
|52 Week Range||2,346.58 - 2,964.15|
During his speech in New York City, Federal Reserve Chair Jerome Powell noted that economic factors have changed quickly in the past few months, but the Fed is 'insulated' from political pressures. Charles Schwab Chief Global Strategist Jeffrey Kleintop and President at American Institute for Economic Research Edward Stringham join Yahoo Finance's Seana Smith to discuss.
Consumer confidence is on the decline.
U.S. stocks slump after Federal Reserve Chairman Jerome Powell said he wanted to avoid a knee-jerk reaction to any one data point
Information technology shares and those related to telecoms suffered sharp losses Tuesday, as commentary from the Federal Reserve moderated hopes for a substantial reduction of benchmark borrowing costs. Rate-cut hopes have thus far underpinned equity market's record rally. The Dow Jones Industrial Average fell 0.6%, to 26,564, those for the S&P 500 index finished 0.9% lower at 2,918, while the technology-heavy Nasdaq Composite Index endured the brunt of the day's selling, down 1.5% at 7,886, representing the worst day for the index in about three weeks. Speaking at the Council on Foreign Relations in New York at 1 p.m. Eastern Time, Fed Chairman Jerome Powell said the rate-setting Federal Open Market Committee was "grappling with is whether these uncertainties will continue to weigh on the outlook and thus call for additional policy accommodation," in prepared remarks. Before that comment, St. Louis Fed President James Bullard, a dovish FOMC member who had advocated for a rate cut, said he didn't endorse an aggressive cut to benchmark rates, which stand at a range of 2.25%-2.50%.
Stocks aren’t in “melt-up” mode yet, but the June rebound could soon begin to foster the same sort of “fear of missing out” feeling that prevailed in April if speculators come off the sidelines, says one quantitative analyst.
(Bloomberg) -- U.S. stocks fell the most in more than three weeks as Federal Reserve Chairman Jerome Powell warned the downside risks to the economy have increased and Trump administration officials signaled a trade deal at the Group of 20 meeting is unlikely. Treasuries and the dollar advanced.The S&P 500 fell for a third-straight session, the longest streak since May 9, as Powell reiterated the case for somewhat lower interest rates, but stopped short of signaling a cut was imminent. Markets have been pricing in a reduction of nearly 50 basis points in July. St. Louis Fed President James Bullard said a cut of that magnitude seemed unwarranted.Tech shares led losses, with the Nasdaq 100 falling more than 1.7%, after a senior Trump administration official told Bloomberg the U.S. won’t accept further conditions on tariffs as part of reopening negotiations and no detailed trade deal is expected from the leaders’ summit.The two-year Treasury was little changed around 1.73%, while the 10-year dropped below 2%, a level that until last week it hadn’t breached in three years. The dollar rose for the first time in six sessions.With stress between the U.S. and Iran building and the White House apparently playing down hopes of a trade breakthrough when Trump and China’s Xi Jinping meet this week, investors have edged away from risk assets following the recent central bank-fueled rally. The market has been betting the Fed will produce deep cuts to interest rates this year, and comments by officials Tuesday highlighted investor sensitivity to any hints that may not happen.There’s “the short-term headlines related to people watching the G-20 and the potential for any news related to the US-China negotiations. That’s one piece that in the shorter run is making the markets a little uneasy. The other one is related to the geopolitical tensions with Iran,” said Omar Aguilar, the chief investment officer for equities at Charles Schwab Investment Management. “The bigger picture still drives the markets, which is we have lower interest rates coming up and the market continues to place a big bet on a July rate cut by the Fed.”Elsewhere, Drugmaker Allergan surged after agreeing to be bought by AbbVie Inc. Bitcoin extended its gains through $11,000. West Texas oil edged lower as investors weighed escalating tensions between the U.S. and Iran against the possibility of OPEC+ extending production cuts.Here are some key events coming up:MSCI Inc. announces results of its 2019 Market Classification Review on Tuesday, including whether Kuwait gets upgraded from frontier to emerging-market status.The Group of 20 summit is in Osaka, Japan on Friday and Saturday.These are the main moves in markets:StocksThe S&P 500 Index fell 0.95%, the biggest decline since May 31, as of 4 p.m. New York time.The Stoxx Europe 600 Index dipped 0.1%.The MSCI Emerging Market Index sank 0.8%.The MSCI Asia Pacific Index decreased 0.4%.CurrenciesThe Bloomberg Dollar Spot Index rose 0.1%.The euro dropped 0.3% to $1.1370, the first retreat in a week.The British pound declined 0.4% to $1.2696.The Japanese yen climbed 0.1% to 107.16 per dollar.BondsThe yield on 10-year Treasuries declined three basis points to 1.99%.Germany’s 10-year yield fell two basis points to -0.31%, the lowest on record.Britain’s 10-year yield dipped two basis points to 0.794%.CommoditiesWest Texas Intermediate crude was little changed at $57.89 a barrel.Gold increased 0.6% to $1,426.50 an ounce.\--With assistance from Cormac Mullen and Samuel Potter.To contact the reporters on this story: Randall Jensen in New York at email@example.com;Sarah Ponczek in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Samuel Potter at email@example.com, Yakob Peterseil, Jeremy HerronFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
President Donald Trump on Tuesday talks tough about Iran, with his warnings coming just a few days after he called off U.S. airstrikes against Iranian targets that would have been in retaliation for the downing of an American drone.
Shares of Tesla, which have risen for most of June, could get a further boost from the car maker’s second-quarter delivery and production report.
U.S. stocks, bonds, gold and oil are all rallying together this week, sustained by the Federal Reserve reassurance that it may lower interest rates soon to help offset the “cross currents” in the global economy generated by the Trump administration’s erratic trade policy. U.S. stocks rallied to new records last week after the Federal Reserve’s suggestion, repeated by Fed chair Powell as recently as Tuesday, that easier monetary policy may be on the horizon.
President Donald Trump Tuesday morning thanked himself for a stock market that has been mostly clambering to new heights. The 45th president via Twitter touted the buoyancy of the equity markets, saying: “Stock Market is heading for one of the best months (June) in the history of our Country. Stock Market is heading for one of the best months (June) in the history of our Country.
President Trump bared his brass knuckles again in a trade spat with China, threatening to raise tariffs on billions of dollars in imports because talks to resolve the dispute are going “too slowly.”
Gold soared to an almost six-year high on Tuesday on escalating U.S.-Iran tensions, while equity markets slid on disappointing economic data and uncertainty that the Federal Reserve will cut interest rates in July as has been expected. Fed Chairman Jerome Powell said in a speech the U.S. central bank is insulated from short-term political pressures as policymakers wrestle with whether to cut rates amid slowing growth as President Donald Trump has demanded.
Wall Street lost ground on Tuesday as simmering trade concerns, combined with disappointing economic data, sent buyers to the sidelines, where they remained after Federal Reserve Chair Jerome Powell pushed back on pressure from President Donald Trump to cut rates. All three major U.S. stock indexes were in the red, weighed most heavily by technology stocks, after Powell said the Fed was grappling with whether trade uncertainties and other issues support interest rate cuts.
Shares of Abercrombie & Fitch Co. sank 4.5% in midday trading Tuesday, but CFRA analyst Camilla Yanushevsky reiterated her buy rating, saying investors are missing bullish points, although she cut her price target to $22 from $35. The stock had plunged 50% since closing at a 3-year high of $30.48 on May 3, 2019 to a 1 1/2-year low of $15.23 on June 12, highlighted by the 27% tumble on May 29 after fiscal first-quarter results, in which same-store sales missed expectations. "Initiatives CEO Fran Horowitz [have] taken to integrate inclusivity in brand since her appointment are paying off," Yanushevsky wrote in a note to clients. "In our view, retailers that align mission and product to convince consumer that they're 'inclusive' will flourish, even in the face of secular mall traffic declines." Yanushevsky pointed out that A&F has posted 7-straight quarters of same-store sales growth. That followed six-straight quarters of declines, and 22 quarters of declines over the past 23 quarters. The stock has lost 23% year to date, while the SPDR S&P Retail ETF has gained 1.2% and the S&P 500 has advanced 17%.
Stocks fell back in afternoon trading Tuesday after remarks by Fed Chairman Jerome Powell to the Council on Foreign Relations.
First, while such efforts often have powerful emotional appeal, they have no impact on the targeted companies, especially since vice funds (VICEX) stand ready to buy stocks diverted from standard portfolios. Until recently social investing wasn’t a real issue for private plans because guidance from the Department of Labor clearly stated that plan trustees or other investing fiduciaries may not accept higher risk or lower returns in order to promote social, environmental, or other public policy causes. In 2015, however, the agency clarified that fiduciaries may incorporate environmental, social, and governance (ESG) factors into the investment decision.
“I understand that value stocks in the past were very profitable, but over the most recent (fill in the blank with a number) years, they seem to have lost their luster. Personally, I believe investing in value stocks is a terrific option. The same factors that made value investing a good deal in the past are very likely to persist into the future.
The Dow Jones Industrial Average midday Tuesday retreated to the lows of the session, along with the broader market, after a Federal Reserve member signaled that substantial rate cuts next month may not be needed. The Dow declined by more than 100 points, or 0.4%, at 26,625, representing Tuesday's nadir, as St. Louis Federal Reserve President James Bullard said that a rate cut by as many as half a percentage point, or 50 basis points, may not be warranted. Bullard said I don't think we have to take huge action," Bullard said in an interview on Bloomberg Television. Bullard was the lone dissenter last Wednesday among members of the rate-setting Federal Open Market Committee, which voted to keep rates steady at a range between 2.25% and 2.50%. Bullard would likely advocate for a more modest 25 basis point cut in July. Market participants have been betting that the FOMC will cut rates by at least 50 basis points this year due to slowing economic expansion that has arguably been exacerbated by the Sino-American tariff clash. The S&P 500 index was down 0.6% at 2,926, while the Nasdaq Composite Index gave up 1.1% to reach 7,930, as the broader market deepened its losses. Rate cuts for Wall Street translate to lower borrowing costs to corporations and are seen as bullish for buying if the economy doesn't fall into a recession.
St. Louis Federal Reserve President Governor James Bullard said that a half percentage-point cut was unlikely in July, causing markets to slide to their lows of the day.