|Day's Range||2,803.99 - 2,829.87|
|52 Week Range||2,346.58 - 2,940.91|
Otavio Costa, Crescat Capital Global Macro Analyst, joins Jackie DeAngelis on 'The Ticker' to discuss what the yield curve inversion could signal for markets.
Amid trade wars and worries of slowing global economic growth, the S&P 500 has yet to fully recapture the loss it suffered in the fourth quarter. Last year, the worst-performing stock of the S&P 500, Coty Inc. (COTY), plunged 67%, against a 6.24% decline in the index. According to the GuruFocus All-in-One Screener, the stock then soared 72.94% year to date, making it the best performer in the index, which climbed 11.62%.
When DowDuPont Inc. spins off a new company called Dow next week, it will take the chemical giant's place in the Dow Jones Industrial Average, S&P Dow Jones Indices said Tuesday. DowDuPont expects to eventually break up into three separate companies, beginning April 1 with the spin-off of Dow. Dow is expected to have a similar price weight to its predecessor in the Dow Jones index. In a separate announcement, S&P Dow Jones Indices said Dow will enter the S&P 500 index , bumping Brighthouse Financial Inc. to the S&P MidCap 400, and the S&P 100, displacing Halliburton Inc. All of the changes will be effective as of the beginning of trading April 2.
Futures indicated gains for shares in Japan, Hong Kong and Australia, suggesting the regional rebound that saw the Topix index recoup all of Monday’s slide has further to go. Markets are steadying as investors speculate the slide in equities that began Friday in the U.S. was overdone.
Investors are shrugging off the inverted yield curve last week. The Dow Jones Industrial Average rose 0.55% to close at 25,657.73. The S&P 500 added 0.72% to end at 2818.46, and the Nasdaq Composite rose 53.98 points 0.71% to 7691.52.
Global stock markets broadly rebounded on Tuesday after a two-day swoon while benchmark U.S. Treasury yields steadied above 15-month lows as risk appetite improved after worries of a recession clouded trading since late last week. Markets have been rattled since Friday, when the 3-month U.S. Treasury yield exceeded the yield on the 10-year note, an inversion of the yield curve that is widely seen as an indicator of a recession.
U.S. stocks rallied and Treasuries fell as investor concern over an economic downturn showed signs of easing. Energy shares led gains in the S&P 500 Index as oil surged after Russia signaled commitment to output cuts. The greenback erased its monthly drop, and the Japanese yen led losses in haven currencies.
The S&P 500 financial index gained 1.1 percent and registered its biggest daily percentage gain since Feb. 15. The S&P 500's gains came after two sessions of declines, triggered by concern about slowing global economic growth and the inversion of a closely watched part of the Treasury yield curve. The market is on yield watch, there's no doubt about it," said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.
Shoe Carnival Inc. shares rose more than 10% in the extended session Tuesday after the company's earnings slightly topped Wall Street projections. Shoe Carnival reported fiscal fourth-quarter net income of $1.4 million, or 9 cents a share, compared with losses of $3.9 million, or 24 cents a share, in the year-ago period. Adjusted for items such as stock-based compensation and tax effects, among other items, earnings were 11 cents a share. Revenue fell to $234 million from $243.2 million in the year-ago period. Analysts surveyed by FactSet had estimated earnings of 6 cents a share on revenue of $233 million. For the full year, the company said it expects earnings of $2.60 to $2.70 a share and sales of roughly $1.04 billion. Analysts model earnings of $2.66 a share and sales of $1.04 billion. Shoe Carnival stock has gained 20% in the past year, with the S&P 500 index rising 5.3%.
The major market indexes delivered solid gains in the stock market today, even though they closed well off session highs.
U.S. stocks gain Tuesday as energy and financial sectors buoyed the market but main indexes came off their intraday highs on tepid housing and consumer-confidence data as well as lingering uncertainties over global growth and Brexit.
U.S. stock benchmarks on Tuesday gained but finished well off their best levels of the session as equity-market investors wrestled with falling yields that usually imply that investors are worried about the domestic economy. Still, the Dow Jones Industrial Average gained 141 points, or 0.6%, to 25,657, after earlier rising as many as 279 points. The S&P 500 index advanced 0.7% to 2,818, while the technology-laden Nasdaq Composite Index climbed 0.7% to 7,691. All three benchmarks pared firmer gains but the day's advance did snap a two-session slide for the S&P 500 and Nasdaq, even as housing data were lackluster and an accurate signal of impending recessions, continued to remain in force. The 10-year Treasury yield was at 2.418%, holding near its lowest since 2017. A recent slip in 10-year U.S. Treasury yields below the level of three-month Treasury bills, known as a yield-curve inversion has been seen by some investors as foreshadowing of a potential recession in the coming 18 or 24 months, research show. The latest market data suggested that the U.S. economic growth may be softening in parts. Home builders broke ground on new-home construction at a seasonally adjusted annual rate of 1.16 million in February, that's a 9% decline from the month before and well below levels seen last year. Home prices grew at the slowest pace in more than six years, with the S&P CoreLogic Case-Shiller 20-city index rising at a seasonally adjusted rate of 0.2% in January, compared with December. In corporate news, shares of Apple Inc. finished off by more than 1% after a judge ruled that the iPhone marker infringes a Qualcomm Inc. patent. Markets have been on edge after Friday saw the yield-curve inversion manifest for the first time since 2007 and as yields have remained lower. Bond prices and yields move inversely. A Federal Reserve that has signaled that it may hold off on further rate hikes in 2019 has helped to foster the current environment of ultralow yields, market experts say.
As almost everyone knows by now, the most important part of the yield curve inverted late last week, with rates on 10-year notes falling below those on three-month bills. Equities then spent much of the day giving back most of those gains to end up 0.72 percent.
The $5 trillion asset manager’s U.S. ETFs absorbed about $17 billion since year-end, meaning it’s poised to exceed other issuers for the period -- including BlackRock Inc., data compiled by Bloomberg show. BlackRock is in second place with about $14 billion in U.S. iShares net flows as of March 25, setting up a swap between the two behemoths in the final days of the quarter that hasn’t occurred since 2016, the data show. The duo, which control 65 percent of the $3.8 trillion U.S. ETF industry, are locked in a brutal competition for investment in their ETFs.
U.S. stocks gained on Tuesday, with financials snapping a five-day losing streak as Treasury yields stabilized above 15-month lows. Based on the latest available data, the Dow Jones Industrial Average ...
If Friday’s inversion was a signal of a recession 12 or 18 months down the line, Democrats would presumably benefit. But it’s still too soon to know.
A Viacom-CBS merger is in the news again, and both media companies’ stocks rose on Tuesday. The media industry saw no shortage of mergers in 2018, with (T) (T)-Time Warner, (DIS)y (DIS)-most of 21st Century Fox, (CMCSA) (CMCSA)-Sky, and (DISCA) (DISCA)-Scripps Networks all joining forces. A re-merger between CBS and Viacom has been a recurring topic of conversation and speculation.
Mona Mahajan, Allianz Global Investors U.S. Investment Strategist, says that “there’s no signal of a recession,” even though the inverted yield curve is “worrisome.” Brian Levitt, OppenheimerFunds Senior Investment Strategist, adds that “this year we have much slower growth,” but “much better policy” with the Federal Reserve backing off progress happening on trade, creating a “much better market environment.” Yahoo Finance's Alexis Christoforous speaks to Mahajan, Levitt, Brian Sozzi and Scott Gamm.