US stocks trade mixed as economic data signals continued recovery

Trader
Traders work during the closing bell at the New York Stock Exchange (NYSE) on March 18, 2020 at Wall Street in New York City


US stocks traded in a narrow range on Tuesday, with the Dow Jones leading the market higher. The S&P 500 and Nasdaq 100 both finished Tuesday’s trading session within 10 basis points of Friday’s closing prices.

ISM Manufacturing data for the month of May was 61.2, slightly above April’s reading of 60.7, and above analyst expectations of 60.9.

Even with Tuesday’s narrow trading range, the S&P 500 and Dow Jones are within striking distance of record highs, as both indexes are less than 1% away from the potential milestone.

Here’s where US indexes stood shortly after the 4:00 p.m. ET close on Tuesday:

Oil surged on Tuesday, hitting highs not seen since 2018 after OPEC+ members forecasted growing demand amid a global economic recovery. The oil group is expected to confirm its supply policies in an upcoming meeting. That surge sent oil stocks higher, with the sector up as much as 3% in Tuesday trades.

Electric truck startup Rivian Automotive is said to be seeking a $70 billion valuation when it goes public later this year, according to a report from Bloomberg. The company was last valued at $27.6 billion in January.

Reddit meme stocks continued to soar on Tuesday, with movie-theater chain AMC Entertainment up as much as 20%. The company raised $230.5 million from the sale of stock to a private investment firm. Blackberry also surged as much as 10% in Tuesday trades.

Shares of Nio were higher in Tuesday trades following an upgrade from Citi, which said the stock could jump 50% on demand for electric vehicles in China.

Oil prices were higher. West Texas Intermediate crude rose 2.4%, to $67.93 per barrel. Brent crude, oil’s international benchmark, jumped 1.7%, to $70.50 per barrel.

Gold fell 0.1%, to $1,902 per ounce.

Read the original article on Business Insider

Dow climbs 280 points amid renewed pandemic-recovery optimism

Trader NYSE green
Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., March 17, 2020.


US stocks started June higher, with the Dow Jones surging nearly 300 points ahead of economic data that is expected to show a continued economic recovery from the pandemic.

ISM Manufacturing data for the month of May is expected to come in slightly above April’s reading of 60.7 at 61, according to analyst estimates.

The move higher in stocks will put the S&P 500 and Dow Jones within striking distance of record highs, as both indexes are less than 1% away from the potential milestone.

Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Tuesday:

Oil surged on Tuesday, hitting highs not seen since 2018 after OPEC+ members forecasted growing demand amid a global economic recovery. The oil group is expected to confirm its supply policies in an upcoming meeting.

Electric truck startup Rivian Automotive is said to be seeking a $70 billion valuation when it goes public later this year, according to a report from Bloomberg. The company was last valued at $27.6 billion in January.

Reddit meme stocks continued to soar on Tuesday, with movie-theater chain AMC Entertainment up as much as 20%. The company raised $230.5 million from the sale of stock to a private investment firm. Blackberry also surged as much as 10% in Tuesday trades.

Shares of Nio were higher in Tuesday trades following an upgrade from Citi, which said the stock could jump 50% on demand for electric vehicles in China.

Oil prices were higher. West Texas Intermediate crude rose 3%, to $68.30 per barrel. Brent crude, oil’s international benchmark, jumped 2.1%, to $70.78 per barrel.

Gold jumped 0.2%, to $1,910.60 per ounce.

Read the original article on Business Insider

Tech stocks lead US markets lower as inflation fears persist

Trader NYSE

US stocks were lower on Monday, dragged down by technology stocks as investors continued to weigh rising inflation fears, which rattled markets last week.

An uptick in COVID-19 cases outside of the US also hurt risk assets, as Asian countries like Taiwan and Singapore saw a tick higher in cases..

Fueling the surge in inflation expectations has been the actual surge in commodity prices, such as lumber, oil, and copper in recent weeks. But lumber prices have taken a break from jumping higher, with the essential building block down for six straight sessions in a row.

The highest number of S&P 500 companies citing “inflation” on their first-quarter earnings calls has surged to the highest level in over 10 years, according to FactSet.

Here’s where US indexes stood at the 4 p.m. ET market close on Monday:

Read more: Buy these 25 stocks that have the rare combo of highly reliable profits and cheap valuations, UBS says

It was also merger Monday on Wall Street, as AT&T agreed to merge its media business with Discovery in a deal worth $43 billion. AT&T will divest its TimeWarner unit, which it acquired in 2018 for $85 billion. AT&T surged as much as 3%, and Discovery as much as 20% in early Monday trades.

Bank of America likes the deal, and said in a Monday note that shares of AT&T could surge 50% from current levels as the newly formed media company unlocks value for shareholders.

Bitcoin retraced part of a deep weekend sell-off that was sparked by tweets from Tesla CEO Elon Musk. Bitcoin hit support near $42,000, before jumping to the $45,000 level on Monday. The entire cryptocurrency market has lost 23% in value in the past five days, according to data from CoinMarketCap.

Shares of GameStop jumped by as much as 8% in Monday trades after the company cryptically acknowledged its stock’s surge earlier this year in a tweet.

Oil prices were higher. West Texas Intermediate crude rose as much as 1.6%, to $66.43 per barrel. Brent crude, oil’s international benchmark, climbed 1.3%, to $69.62 per barrel, at intraday highs.

Gold increased as much as 1.4%, to $1,868.49 per ounce.

Read the original article on Business Insider

US stocks decline as investors weigh inflation fears and spiking virus cases globally

Trader NYSE green
  • US stocks fell on Monday as investors weighed rising inflation fears and a jump in global COVID-19 cases.
  • It was also merger Monday on Wall Street as AT&T agreed to merge its media business with Discovery.
  • Cryptocurrencies were mostly higher on Monday as they recovered from a weekend sell-off.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stocks were lower on Monday as investors continued to weigh rising inflation fears and an uptick in COVID-19 cases was realized in Asian countries like Taiwan and Singapore.

Fueling the surge in inflation expectations has been the actual surge in commodity prices, such as lumber, oil, and copper in recent weeks.

The highest number of S&P 500 companies citing “inflation” on their first-quarter earnings calls has surged to the highest level in over 10 years, according to FactSet.

Here’s where US indexes stood at the 9:30 a.m. ET open on Monday:

Read more: Buy these 25 stocks that have the rare combo of highly reliable profits and cheap valuations, UBS says

It was also merger Monday on Wall Street, as AT&T agreed to merge its media business with Discovery in a deal worth $43 billion. AT&T will divest its TimeWarner unit, which it acquired in 2018 for $85 billion. AT&T surged as much as 3%, and Discovery as much as 20% in early Monday trades.

Bitcoin retraced part of a deep weekend sell-off that was sparked by tweets from Tesla CEO Elon Musk. The cryptocurrency hit support near $42,000, before jumping to the $45,000 level on Monday.

Oil prices were higher. West Texas Intermediate crude rose as much as 0.6%, to $65.74 per barrel. Brent crude, oil’s international benchmark, climbed 0.5%, to $69.07 per barrel, at intraday highs.

Gold fell increased as much as 0.7%, to $1,855.47 per ounce.

Read the original article on Business Insider

Dow plummets 472 points on inflation fears as tech stocks whipsaw

NYSE trader
  • Inflation fears drove a choppy trading session in stocks on Tuesday as the Dow Jones plummeted more nearly 500 points.
  • The tech-heavy Nasdaq 100 started the day down by more than 2% before it briefly reversed all losses and turned green.
  • Fueling a surge in inflation expectations has been the actual surge in commodities like lumber, oil, and copper.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Stocks were volatile on Tuesday as fears of rising inflation persisted among investors. The Nasdaq initially fell more than 2% before briefly turning positive, while the Dow Jones fell more than 500 points before paring some losses.

Fueling the surge in inflation expectations has been the actual surge in commodity prices, such as lumber, oil, and copper.

This week’s stock market decline hit high-flying tech stocks the most, with shares of Tesla down as much as 13% since the start of the week. Cathie Wood’s ARK Invest flagship ETF was also being sold heavily by investors, as it fell 10% since Monday.

Here’s where US indexes stood at the 4:00 p.m. ET close on Tuesday:

Virgin Galactic, the pre-revenue space tourism company that seeks to launch paying customers into space, fell as much as 21% after its first-quarter earnings report revealed an uncertain flight schedule as it deals with maintenance issues for its spaceship.

Palantir initially fell as much as 9% after its first-quarter earnings report, but went onto reverse those losses and rise by as much as 9%. The company also said it will accept bitcoin as a form of payment and was weighing adding it to its balance sheet.

The price of dogecoin briefly surged as much as 20% after Tesla CEO Elon Musk ran a poll on Twitter to see if the electric vehicle manufacturer should accept the meme-inspired cryptocurrency as a form of payment. Tesla currently accepts bitcoin as payment for its products.

Roblox jumped as much as 18% after it reported mixed earnings results in its first report as a public company. The stock erased all of its losses for the month of May and reached its highest levels since late April.

Novavax extended its two-day decline to as much as 31% after it delayed seeking emergency approval for its COVID-19 vaccine.

Oil prices were higher. West Texas Intermediate crude jumped 0.4%, to $65.35 per barrel. Brent crude, oil’s international benchmark, dropped by 0.4%, to $68.60 per barrel.

Gold was flat on Tuesday at $1,837.30 per ounce.

Read the original article on Business Insider

Nasdaq tumbles 2% as inflation fears continue tech-fueled market sell-off

Trader NYSE
Traders work on the floor of the New York Stock Exchange shortly before the closing bell as the market takes a significant dip in New York, U.S., February 25, 2020.


US tech stocks continued their decline on Tuesday as fears of rising inflation persisted among investors. The Nasdaq fell more than 2% on Tuesday, adding on to its Monday decline of 2.55%.

Fueling the surge in inflation expectations has been the actual surge in commodity prices, such as lumber, oil, and copper.

This week’s stock market decline hit high-flying tech stocks the most, with shares of Tesla down as much as 13% since the start of the week. Cathie Wood’s ARK Invest flagship ETF was also being sold heavily by investors, as it fell 10% since Monday.

Here’s where US indexes stood at the 9:30 a.m. ET open on Tuesday:

Virgin Galactic, the pre-revenue space tourism company that seeks to launch paying customers into space, fell as much as 21% after its first-quarter earnings report revealed an uncertain flight schedule as it deals with maintenance issues for its spaceship.

Palantir fell as much as 9% after its first-quarter earnings report failed to impress investors. And decline auto sales in China for Tesla led to a sharp decline in the stock on Tuesday.

The price of dogecoin briefly surged as much as 20% after Tesla CEO Elon Musk ran a poll on Twitter to see if the electric vehicle manufacturer should accept the meme-inspired cryptocurrency as a form of payment. Tesla currently accepts bitcoin as payment for its products.

Oil prices were lower. West Texas Intermediate crude fell 1.4%, to $63.99 per barrel. Brent crude, oil’s international benchmark, dropped by 1.3%, to $67.42 per barrel.

Gold fell 0.7%, to $1,825.90 per ounce.

Read the original article on Business Insider

Dow, S&P 500 close at record highs after dismal jobs report gives Fed more breathing room

trader, NYSE
  • The Dow Jones and S&P 500 closed at record highs on Friday after a weak April jobs report gave the Federal Reserve breathing room to continue with its easy monetary policies.
  • April saw an addition of 266,000 jobs, well below the estimates forecast of 1 million.
  • The April jobs report represented the worst miss since 1998.

The Dow Jones and S&P 500 closed at record highs on Friday after a weak April jobs report led to investors bidding up popular stay-at-home stocks that have performed well during the pandemic. The Nasdaq led the markets higher, but failed to reach new records.

April saw an addition of 266,000 jobs, well below the estimated forecast of 1 million. Unemployment rose to 6.1% from 6.0%. Economists had expected the rate to fall to 5.8%. The jobs report represented the worst miss since 1998.

The report likely gave the Federal Reserve more breathing room in continuing with its easy monetary policies, with regards to keeping interest rates low and its $120 billion monthly bond purchases.

While the Nasdaq 100 jumped following the release of the April jobs report, the Dow Jones moved lower as cyclical stocks tied to a reopened economy were out of favor.

Here’s where US indexes stood at the 4:00 p.m. ET close on Friday:

Square jumped 6% following its first-quarter earnings report, which surpassed analyst estimates. The company saw its bitcoin revenue jump 1,000% to $3.5 billion, and disclosed that it’s the third-largest corporate holder of the cryptocurrency.

The surge in bitcoin interest has led to banks opening up new business divisions to gain exposure. A report said Citi is planning to launch its own crypto trading services, and Goldman is also launching a cryptocurrency trading desk.

A bitcoin ETF launched three weeks ago has already attracted $832 million in assets under management, as the crypto craze continues.

Since the announcement of divorce between Bill and Melinda Gates, more than $5 billion worth of stocks have been transferred to Melinda from Bill Gates’ Cascade Investment holding company.

Tilray jumped 10% on a double upgrade from Jefferies, which said its merger with Aphria was a “perfect” match.

Oil prices rose modestly. West Texas Intermediate crude was up 0.05%, to $64.73 per barrel. Brent crude, oil’s international benchmark, increased by 0.01%, to $68.10 per barrel.

Gold jumped to its highest price since February, rising as much as 1.5%, to $1,842.59 per ounce

Read the original article on Business Insider

S&P 500 hits record high after bad April jobs-report miss dampens inflation fears

A trader works on the floor at the New York Stock Exchange (NYSE) in New York, U.S., March 4, 2020. REUTERS/Brendan McDermid
A trader works on the floor at the NYSE in New York

  • Tech stocks jumped on Friday after a weak April jobs report led to a rally in stay-at-home stocks.
  • April saw an addition of 266,000 jobs, well below the estimates forecast of 1 million.
  • The April jobs report represented the worst miss since 1998.

Technology stocks soared on Friday and the S&P 500 hit a record high after a weak April jobs report led to investors bidding up popular stay-at-home stocks that have performed well during the pandemic.

April saw an addition of 266,000 jobs, well below the estimated forecast of 1 million. Unemployment rose to 6.1% from 6.0%. Economists had expected the rate to fall to 5.8%. The jobs report represented the worst miss since 1998.

The report likely gave some credence to the Fed’s wait and see approach with regards to raising interest rates and whether rising inflation is transitory or not.

While the Nasdaq 100 jumped following the release of the April jobs report, the Dow Jones moved lower as cyclical stocks tied to a reopened economy were out of favor.

Here’s where US indexes stood at 10:50 a.m. ET on Friday:

Square jumped 6% following its first-quarter earnings report, which surpassed analyst estimates. The company saw its bitcoin revenue jump 1,000% to $3.5 billion, and disclosed that it’s the third-largest corporate holder of the cryptocurrency.

The surge in bitcoin interest has led to banks opening up new business divisions to gain exposure. A report said Citi is planning to launch its own crypto trading services, and Goldman is also launching a cryptocurrency trading desk.

Since the announcement of divorce between Bill and Melinda Gates, more than $5 billion worth of stocks have been transferred to Melinda from Bill Gates’ Cascade Investment holding company.

Oil prices were lower. West Texas Intermediate crude fell 0.7%, to $64.29 per barrel. Brent crude, oil’s international benchmark, dropped by 0.6%, to $67.66 per barrel.

Gold jumped 0.8%, to $1,831.20 per ounce.

Read the original article on Business Insider

Dow jumps 238 points as Fed’s Williams says strong economic growth not yet enough to impact monetary policy

happy trader
  • US stocks were mixed on Monday, with the Nasdaq 100 falling while the S&P 500 and Dow Jones rallied higher.
  • The Fed’s John Williams said on Monday that the strengthening economy is not yet enough to impact monetary policy.
  • Investors are awaiting another big week of earnings, as PayPal, General Motors, and Etsy are set to report.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stocks were mixed on Monday, with the S&P 500 and Dow Jones rising as the Nasdaq 100 fell.

The mixed trading came amid comments from the Fed’s John Williams, who said accelerating economic growth is not yet enough to impact the Fed’s easy monetary policy.

“It’s clear there is a big shift in the economy, and the outlook has improved,” Williams said at a virtual event. “But let me emphasize that the data and conditions we are seeing now are not nearly enough for the FOMC to shift its monetary policy stance.”

The Fed is currently buying $120 billion of bonds per month and has set its Fed Funds Rate at near zero. Investors are also anticipating another big week of corporate earnings, as PayPal, General Motors, and Etsy are set to report later this week.

Here’s where US indexes stood at the 4:00 p.m. ET close on Monday:

Investors turned their focus to Berkshire Hathaway’s Warren Buffett and Charlie Munger over the weekend as the company held its annual shareholders meeting virtually.

Buffett and Munger cautioned investors against speculative investing, said that trimming their positions in Apple and Costco was a mistake, and harpooned Robinhood, SPACs, and cryptocurrencies throughout the meeting.

Munger’s criticism of cryptocurrencies didn’t stop investors from bidding up ethereum and bitcoin over the weekend. Ethereum surged to record highs above the $3,000 level, and Ark Invest laid out 3 reasons why the cryptocurrency is surging.

Buffett confirmed that Greg Abel will be his likely successor at Berkshire Hathaway. Abel currently leads Berkshire Hathaway’s energy business. Abel has long been seen by investors as a strong contender to lead the $631 billion conglomerate.

Fidelity cut its implied valuation of Ant Group in half to $144 billion, according to regulatory filings. The mutual fund giant had previously valued its Ant Group stake at $295 billion, but increased regulatory scrutiny from China led to a canceled IPO and a depressed valuation.

Oil prices were higher. West Texas Intermediate crude rose 1.34%, to $64.43 per barrel. Brent crude, oil’s international benchmark, jumped by 1.09%, to $67.49 per barrel.

Gold jumped 1.3%, to $1,791.30 ounce.

Read the original article on Business Insider

US stocks edge higher as investors brace for another wave of corporate earnings

Stock trader

US stocks edged higher on Monday as investors anticipate another flood of first-quarter earnings that are set to be released this week. Earnings reports from Pfizer, General Motors, PayPal and Etsy among others will be released throughout this week.

Mega-cap technology companies headlined last week’s earnings announcements, with Tesla, Apple, Alphabet, and Amazon all beating earnings expectations.

Here’s where US indexes stood at the 9:30 a.m. ET open on Monday:

Investors turned their focus to Berkshire Hathaway’s Warren Buffett and Charlie Munger over the weekend as the company held its annual shareholders meeting virtually.

Buffett and Munger cautioned investors against speculative investing, said that trimming their positions in Apple and Costco was a mistake, and harpooned Robinhood, SPACs, and cryptocurrencies throughout the meeting.

Munger’s criticism of cryptocurrencies didn’t stop investors from bidding up ethereum and bitcoin over the weekend. Ethereum surged to record highs above the $3,000 level.

Buffett confirmed that Greg Abel will be his likely successor at Berkshire Hathaway. Abel currently leads Berkshire Hathaway’s energy business.

Fidelity cut its implied valuation of Ant Group in half to $144 billion, according to regulatory filings. The mutual fund giant had previously valued its Ant Group stake at $295 billion, but increased regulatory scrutiny from China led to a canceled IPO and a depressed valuation.

Oil prices were higher. West Texas Intermediate crude rose 0.5%, to $63.86 per barrel. Brent crude, oil’s international benchmark, jumped by 0.25%, to $66.92 per barrel.

Gold jumped 2%, to $1,788.80 per ounce.

Read the original article on Business Insider