|Day's Range||2,944.05 - 2,954.92|
|52 Week Range||2,346.58 - 2,964.15|
On the latest installment of the Final Round Strategy Session, Myles Udland, Jennifer Rogers and Seana Smith discuss the latest analyst calls from Credit Suisse and Morgan Stanley on markets and the economy.
Dallas Fed President Robert Kaplan says the Fed should continue to wait before making rate cuts, saying that cutting rates could build up leverage in the financial system.
As gold continues to spike, Keith Bliss at Cuttone & Co. cautions stocks have historically delivered a better return than gold. He spoke with Yahoo Finance’s Alexis Christoforous, Brian Sozzi and Scott Gamm.
The Fed got one worry out of the way last week when it hinted of an interest-rate cut as soon as July, but trade is still a problem—one that U.S. President Donald Trump and Chinese President Xi Jinping have the potential to solve—or exacerbate.
The S&P 500 edged lower on Monday as losses by healthcare companies overshadowed gains in the technology sector, while investors awaited U.S. President Donald Trump's meeting with Chinese President Xi Jinping at the G20 summit this week. The Nasdaq slipped but tariff-sensitive industrials, headed up by Boeing Co, led the blue-chip Dow Jones Industrial Average to a nominal advance. While the bellwether S&P 500 ended the session in the red, it remained within a hair's breadth of its all-time closing high reached last Thursday as markets reacted to a dovish statement from the U.S. Federal Reserve.
Too little attention is being paid to potential for rapid pace of job losses, says Sheila Bair, the ex-head of the FDIC
(Bloomberg) -- The S&P 500 is at a record, but areas of the stock market with a reputation for economic prescience are sending warning signals that hearken to the global financial crisis.It’s small caps and transportation stocks, whose performance has deteriorated at a much faster clip than other parts of the market. Relative to the S&P 500, each group is on the brink of hitting its lowest point since 2009. For investors, the decline is another example of the growth debate churning underneath the market’s surface.“There’s still uncertainty as to what direction this market should go. It’s anybody’s guess,” said Jeff Carbone, managing partner at Cornerstone Wealth, which has about $1.3 billion in assets under management. “I just don’t know if we’re out of the woods yet.”Bears say the weakness in shipping and rail companies that rise and fall with the broader economy and small caps that depend on domestic demand for the bulk of their revenue is a warning not to be ignored. The losses in economically-sensitive stocks reinforce the signal from falling bond yields that suggests all is not well with the economy.Data Monday added to concern, when an unexpectedly weak factory output from the Dallas Fed was the third such gauge to miss estimates. While the S&P 500 only slipped 0.2%, the Russell 2000 Index sank 1.3%, while the Dow Jones Transportation Average tumbled 1.5%.For transports, the sell-off added to its worst performance versus the S&P 500 since 2012. Another day like Monday, and the ratio could drop to the lowest in a decade.FedEx Corp., one of the largest components of the transportation average, reports earnings Tuesday and analysts have warned that trouble looms. Lingering effects from the U.S.-China trade war, the slowdown seen in manufacturing data and weakness in Europe could mean the shipping company will cut guidance for the year-ahead, they say.Meanwhile, weakness in the Russell 2000 has taken it to the lowest level versus the S&P 500 since 2016, and it sits precariously close to the lowest level since 2009. Weakness in small caps has preceded broader sell-offs in the past. Most recently, the gauge peaked against the S&P 500 in June of last year, foreshadowing the fourth-quarter rout that almost ended the bull market.“You normally think of small caps as that’s where the dynamic growth of the economy is coming from,” said Peter Jankovskis, co-chief investment officer at Oakbrook Investments. “So to see the overall market doing well while they’re being left behind, it suggests that people are a little bit concerned about growth prospects.”For Morgan Stanley’s Mike Wilson, one of the most bearish equity strategists on Wall Street, a continuation of soft economic data could lay the groundwork for a 10% correction in the third quarter. As the Fed continues to make the case for data-dependency, the stock market will soon catch on, he said. And if the data continues to worsen, that could mean record highs won’t last long.\--With assistance from Vildana Hajric and Rita Nazareth.To contact the reporter on this story: Sarah Ponczek in New York at email@example.comTo contact the editors responsible for this story: Jeremy Herron at firstname.lastname@example.org, Chris NagiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Stock benchmarks lose some altitude Monday afternoon as investors look ahead to a meeting between President Donald Trump and Chinese leader Xi Jinping, while also tracking tensions between the U.S. and Iran.
Some ten years since the 2008-09 U.S. housing bubble, which sparked a global financial crisis, worries about the health of the global housing market persist.
The S&P 500 edged lower on Monday as losses by healthcare companies overshadowed gains in the technology sector, while investors awaited U.S. President Donald Trump's meeting with Chinese President Xi Jinping at the G20 summit this week. The Nasdaq slipped but tariff-sensitive industrials, headed up by Boeing Co, led the blue-chip Dow Jones Industrial Average to a nominal advance.
Global equity markets traded mostly flat on Monday as investors awaited U.S.-China trade talks the end of this week at the G20 summit, and the dollar fell to three-month lows on bets the Federal Reserve may cut interest rates more than once this year. European stocks stumbled on fears of an escalation in Iran tensions, which also kept gold prices near a six-year high. U.S. President Donald Trump targeted Iranian Supreme Leader Ayatollah Ali Khamenei and other Iranian senior officials with new sanctions on Monday.
Federal Reserve Chairman Jerome Powell with testify to Congress on July 10 and 11 about interest-rate policy, two congressional committees announced Monday. The House Financial Services panel will go first, followed by the Senate Banking Committee the following day. Powell has made a concerted effort to be available to brief members of Congress behind closed doors about the economic outlook, and is often seen by reporters walking in the hallways of the Capitol.
U.S. stocks ended mostly lower on Monday, with only the blue-chip Dow managing to hold onto slight gains, as geopolitical tensions in the Middle East weighed on the oil sector. The Dow Jones Industrial Average was up 9 points, or less than 0.1%, to around 26,728, based on preliminary numbers. The S&P 500 was down 0.2% to finish around 2,945. The Nasdaq Composite fell 0.3% to end around 8,006. President Donald Trump signed an executive order sanctioning Iran's leaders. The U.S. and Iran have been stuck in a simmering dispute over attacks on tankers near the Strait of Hormuz and the downing of a U.S. drone last week. U.S. oil futures settled higher on Monday, even as energy stocks were among the worst performers for the day. Investors were mostly focused on the upcoming G-20 meeting at the end of the week, with many hoping President Donald Trump and Chinese counterpart Xi Jinping will reach a deal to prevent a further escalation in trade tensions. Shares of Caesars Entertainment Corp. jumped 15% after the casino operator consented to a buyout by Eldorado Resorts Inc.
(Bloomberg) -- U.S. stocks edged away from records as investors weighed expectations for easier monetary policy against concerns about a slowing global economy. Treasuries gained, while the dollar dropped.The S&P 500 fell for a second session, stalling below last week’s all-time high that was fueled by the prospect of rate cuts. Health-care paced losses as Bristol-Meyers Squibb Co. tumbled after the company said it will strip out a top drug from its merger with Celgene Corp. to get regulator approval. Energy producers dropped in the wake of new U.S. sanctions on Iran. The Russell 2000 Index slumped.Investors in risk assets have continued to shrug off signs of an economic slowdown and focus on the increasingly dovish tone at central banks around the world. That attention will intensify Tuesday when Fed Chair Jerome Powell discusses monetary policy. But sentiment could be at a crossroads as the conflict between the America and Iran has ramped up, and the meeting between China’s President Xi Jinping and Donald Trump this week at the Group of 20 conference in Japan presents a pivot point for trade relations between the two countries.The 10-year Treasury yield dropped to 2.02%, while West Texas crude rose toward $58 a barrel. The euro touched a three-month high against the dollar even as data showed that a slump in German business confidence deepened in June.It’s “a pretty good guess that we won’t see a whole lot of movement in front of the big upcoming meetings (G20 and OPEC),” wrote Matt Maley, equity strategist at Miller Tabak & Co. “Given the meeting between President Trump & President Xi at the one and the impact the situation with Iran could/should have on the other, the results of those meetings should be quite important to the stock market’s next move.”Elsewhere, gold extended its advance above $1,400 an ounce, while Bitcoin surged toward 11,000.Here are some key events coming up:Fed Chairman Jerome Powell speaks at the Council on Foreign Relations in New York Tuesday. He’ll discuss the challenges facing the U.S. economy.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 fell 0.2% as of 4 p.m. in New York.The Nasdaq 100 Index dropped 0.3%, while the Russell 2000 Index slid 1.3%.The Stoxx Europe 600 Index decreased 0.3% to the lowest in a week.The MSCI Emerging Market Index advanced 0.1%.CurrenciesThe Bloomberg Dollar Spot Index dropped 0.1%. The euro rose 0.2% to $1.1388, the strongest in almost 14 weeks.The British pound was little changed at $1.2736.The Japanese yen was little changed at 107.31 per dollar.BondsThe yield on 10-year Treasuries dipped four basis points to 2.02%.Germany’s 10-year yield declined two basis points to -0.31%.Japan’s 10-year yield advanced less than one basis point to -0.154%.CommoditiesWest Texas Intermediate crude rose 0.6% to $57.78 a barrel.Gold climbed 1.5% to $1,421.60 an ounce, reaching the highest in almost six years.\--With assistance from Anchalee Worrachate, Yakob Peterseil and Vildana Hajric.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: Jeremy Herron at email@example.com, Randall JensenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The U.S. Food and Drug Administration has approved Allergan Plc's CoolTone device for use in strengthening, toning and firming the abdominal area, buttocks and thighs, Allergan said Monday. CoolTone uses magnetic muscle stimulation to penetrate muscle layers, which then causes involuntary muscle contractions. The body responds to the contractions by strengthening muscle fibers, leading to increased muscle tone. The drugmaker said CoolTone has 50% more magnetic intensity than the leading competitor, but that claim has not been clinically established. Allergan also makes the CoolSculpting device, a non-surgical fat-elimination device that works by freezing and killing fat cells in targeted areas like the abdomen, flanks or under the chin. Shares of the drugmaker have fallen 3.4% so far this year, but were down as much as 12.5% in June before buzz of a possible company split helped bolster the stock price. Allergan has been dealing with some significant issues in the past year -- investors are worried about the future of Botox, the company's biggest earner, as it faces competition in the anti-wrinkle and injectable migraine treatment markets. Investors were also rattled by the failure of depression drug rapastinel -- once considered by many to be Allergan's next big blockbuster drug -- in clinical trials earlier this year. In May, Chief Executive Brent Saunders said he had heard investors' concerns "loud and clear," adding that "everything is on the table," including the possibility of splitting the company up.
Wall Street struggled for direction on Monday as gains by technology companies were blunted by losses in the healthcare sector, while investors looked to U.S. President Donald Trump's meeting with his Chinese counterpart Xi Jinping at the G20 summit later this week. The Dow held on to a small advance, while the Nasdaq was slightly lower.
A broad slowdown among American manufacturers suggests the U.S. has just ‘as much or more” to lose as China from a trade dispute that’s led to tit-for-tat tariffs, fresh research contends.