US stocks dip as investors weigh spiking yields against stimulus promises

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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 were lower on Wednesday, extending their decline from Tuesday’s volatile tech sell-off with the Nasdaq 100 leading the decline.

The decline in stocks has been sparked by a spike in interest rates and concerns about rising inflation, but the promise of a $1.9 trillion fiscal stimulus bill continues to weigh on investors.

The 10-year Treasury yield hit 1.4% on Wednesday, but Federal Reserve chair Jerome Powell eased inflation concerns in his testimony to Congress on Tuesday. Powell is set to return to the hill today.

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

The volatile trading in bitcoin continued on Wednesday, as it hovered around the $50,000 level. Square and MicroStrategy both said they purchased more bitcoin, and Ark Invest’s Cathie Wood said she is still “very positive” on the cryptocurrency.

EV company Fisker Inc. soared 20% after it inked a memorandum of understanding with iPhone manufacturer Foxconn to develop a new vehicle scheduled for a release in 2023. 

A steep decline for Tesla this week served as an opportunity for Ark Invest to buy the dip for its investment funds, with the investment management company buying more than 200,000 shares. 

The FDA said Johnson & Johnson’s COVID-19 vaccine is safe and effective, paving the way for the vaccine to be authorized for emergency use later this week. The healthcare company said it could deliver 100 million of its single-dose vaccines by the end of June.

Oil prices were higher. West Texas Intermediate crude jumped as much as 1.3%, to $62.44 per barrel. Brent crude, oil’s international benchmark, rose by 1.33%, to $66.24 per barrel.

Gold fell 0.9%, to $1,789.90 per ounce.

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Nio’s 2-day plunge stretches to 24% as electric-vehicle stock momentum slows

Nio
  • Nio shares fell as much as 18% Tuesday, extending their two-day loss to 24%.
  • The company is one of several electric-vehicle makers to see sharp two-day declines.
  • Tesla specifically has led a broader sell-off in tech stocks.
  • Visit the Business section of Insider for more stories.

Nio stock slid as much as 18% on Tuesday, extending the electric-vehicle maker’s two-day skid to 24%. The company has been swept up in a broader industry sell-off led by larger rival Tesla.

Shares of both company are being pulled back alongside other technology stocks as investors evaluate rising borrowing costs in the face of rising bond yields. Bond yields have stepped higher as investors price in a potential pickup in inflation on the back of economic recovery from the COVID-19 pandemic.

“Given their aggressive discounting to present of long-term cash flows, they’re suffering from the same effects as investment grade corporate bonds and anything else that pushes cash flow far into the future,” Bespoke Investment Group said of tech stocks in a Monday note.

For evidence, the firm highlighted the Nasdaq 100‘s more than 4% underperformance versus the Russell 2000 index of small-cap stocks over the past two days.

Tesla shares fell 5% as much as 9% on Tuesday following a similarly-sized drop the prior day. The stock has been under pressure since the company stopped orders for the lowest-priced version of its Model Y SUV over the weekend.

Prior to the two-day dip, Nio’s stock price had been climbing in recent months on growing interest among investors in electric vehicles and green-energy products, factors that have also contributed to the surge in shares of EV maker Tesla.

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Tech stocks tumble as investors balk at lofty valuations

Traders work on the floor of the New York Stock Exchange (NYSE) on November 20, 2019 in New York City
Traders work on the floor of the New York Stock Exchange (NYSE) on November 20, 2019 in New York City


US stocks were mixed on Monday with tech stocks pulling back over valuation concerns while investors weighed what rising yields could mean for inflation.

Fundstrat’s Thomas Lee says the case for cyclical stocks within energy, industrials, consumer discretionary, materials, and financials is strengthening as coronavirus cases fall and the US economy begins to re-open.

US lawmakers will debate on President Joe Biden’s proposed $1.9 trillion American Rescue Plan act this week. Also, Federal Reserve chairman Jerome Powell will deliver testimony to the Senate Banking and House Financial Services Committees

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

Shares of Churchill Capital IV spiked as much as 19% on Monday after a Bloomberg report said a merger with the electric-vehicle maker Lucid Motors could come as soon as Tuesday. The report follows weeks of rumors that special-purpose acquisition company Churchill would merge with Lucid. 

Famed Reddit trader Keith Gill has increased his stake in GameStop, according to a screenshot he posted to Reddit on Friday. Gill, who goes by Roaring Kitty on YouTube and Twitter and DeepF—ingValue on Reddit, now owns 100,000 shares of the video-game retailer, representing a double of his previous common share stake of 50,000 shares. 

General Electric gained as much as 5.6% on Monday but Goldman Sachs predicts the stock could jump roughly 20% to $15 per share. Analysts from the firm sat down with GE executives on Friday to discuss the company’s operations and financials. The analysts came away “encouraged” by free cash flow and power business momentum at the company.

Bitcoin tumbled as much as 17% on Monday after hitting a record above $58,000 over the weekend, though Bitfinex CTO Paolo Ardoino says daily price movements are “more of a sideshow.”

“Today’s price movement may galvanize bitcoin’s many critics, including those who recently dismissed the leading cryptocurrency as an economic sideshow. Such criticism misses the point and the profound impact it is starting to have. For many of the battle-tested exchanges that have weathered the market fluctuations, volatility isn’t new and is to be expected in such a young market. For many in the industry, development and deployment is priority,” Ardoino said on Monday.

Oil prices spiked. West Texas Intermediate crude rose as much as 4.14%, to $61.69 per barrel. Brent crude, oil’s international benchmark, jumped 3.7%, to $65.24 per barrel.

Gold rose 1.75% to $1,808.60 per ounce, at intraday highs.

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US stocks fall as investors mull how stimulus will impact inflation

NYSE Trader Blur
Traders on the floor react before the opening bell on the New York Stock Exchange on March 9, 2020 in New York.


US stocks fell Monday morning as investors remained cautious that a large federal stimulus, coupled with surging commodity prices and rising government bond yields could lead to a rise in inflation, just as the world economy is starting to bounce back from the coronavirus pandemic. 

The yield on the benchmark 10-year US Treasury note is around 1.37%, its highest in a year, having doubled in the space of six months. 

“Near-term Treasury bond prices are likely to remain under pressure as yields rise in anticipation of the economic re-openings that lie ahead. That said, in our experience the bond market has been known to project its expectations for inflation well beyond levels that are justified by the trends in the actual inflation rate,” said John Stoltzfus Oppenheimer Asset Management chief investment strategist. 

US lawmakers will debate on President Joe Biden’s proposed $1.9 trillion American Rescue Plan act this week. Also, Federal Reserve chairman Jerome Powell will deliver testimony to the Senate Banking and House Financial Services Committees. 

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

“Big Short” investor Michael Burry warned over the weekend that rampant speculation and widespread betting with borrowed money has driven the stock market to the brink of collapse

“Speculative stock #bubbles ultimately see the gamblers take on too much debt,” the investor tweeted, along with a chart showing the S&P 500 index and levels of margin debt both soaring in recent months. “The market is dancing on a knife’s edge,” Burry said.

Toast Inc, a cloud-based restaurant-software provider, is planning an initial public offering that could value the firm at around $20 billion, the Wall Street Journal reported.

Bitcoin fell 10% to a 24-hour low under $52,000. The drop follows Sunday’s record high of $58,330. 

Oil prices were higher. West Texas Intermediate crude increased 2.3% to $60.60 per barrel.  Brent crude, oil’s international benchmark, rose 1.75% to $64.01 per barrel.

Gold gained about 1% to $1,795.80 per ounce. 

 

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Dow, S&P 500 hit record highs as Biden administration continues push for $1.9 trillion stimulus

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  • All three major US stock indexes climbed to intraday record highs Monday as investors remained optimistic for a large stimulus.
  • Treasury Secretary Janet Yellen pushed for Congress to pass a package of $1.9 trillion, citing the rocky labor market.
  • Bitcoin soared to a record high after Tesla said it bought $1.5 billion of the cryptocurrency.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

All three major US stock indexes hit intraday record highs on Monday as investors remained hopeful the Biden administration will pass a large stimulus package to support the economic recovery. 

US Treasury Secretary Janet Yellen pushed for Congress to pass a $1.9 trillion stimulus package in a Sunday interview. “If we don’t provide additional support, the unemployment rate is going to stay elevated for years to come,” she told CNN. Her comments follow last week’s disappointing payrolls report; The US added 49,000 jobs in January, missing the estimate of 105,000 additions.

“Reasons for the surge include the end of the short-interest induced frenzy, a gradual slowdown in the number of new Covid-19 cases in the U.S., an improvement in global GDP growth estimates, and the likelihood that most of the Biden $1.9 trillion stimulus package will be approved by congress,” said CFRA’s Sam Stovall on Monday.

The S&P 500 and Nasdaq closed at records last week to finish the first five trading days of February.

Here’s where US indexes as of 12:45 p.m. ET on Monday:

Read more: Credit Suisse says to buy these 16 ‘highest-conviction’ stock picks that are set to outperform despite the market’s contrarian view

Bitcoin soared as much as 16% to all-time-highs of $44,795.20 Monday morning after documents filed with the SEC revealed that Tesla invested $1.5 billion in the popular cryptocurrency. The electric vehicle maker also said it plans to accept the cryptocurrency as payment.

The latest investor dipping into the SPAC space is US hedge fund Elliott Management, known for its activist leaning. The Wall Street Journal reported Elliott has been meeting with bankers to raise more than $1 billion to create a special-purpose acquisition company.

Dating app Bumble increased its IPO size to $1.8 billion on Monday, according to a regulatory filing. The company will now offer 45 million shares priced at between $37 to $39 per share.

Oil prices rose. West Texas Intermediate crude jumped as much as 1.44%, to $57.66 per barrel. Brent crude, oil’s international benchmark, gained 1.37%, to $60.16 per barrel, at intraday highs.

Gold rose 1.2%, to $1,834.50 per ounce.

Read more: GOLDMAN SACHS: Buy these 13 stocks poised to benefit from surging commodity costs – including 2 set to soar by more than 40%

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Dow, Nasdaq on pace for record highs as Biden administration pushes for $1.9 trillion stimulus

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  • US stocks are set to hit new record highs Monday as investors remain optimistic for a large stimulus.
  • Treasury secretary Yellen pushed for Congress to pass a package of $1.9 trillion, citing the rocky labor market.
  • Bitcoin soared to a record high after Tesla said it bought $1.5 billion of the cryptocurrency.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stocks neared record-highs Monday morning as investors remain hopeful the Biden administration will pass a large stimulus package to support the economic recovery. 

US Treasury secretary Janet Yellen pushed for Congress to pass a $1.9 trillion stimulus package in a Sunday interview. “If we don’t provide additional support, the unemployment rate is going to stay elevated for years to come,” she told CNN. Her comments follow last week’s disappointing payrolls report; The US added 49,000 jobs in January, missing the estimate of 105,000 additions.

The S&P 500 and Nasdaq closed at records last week to finish the first five trading days of February.

“Reasons for the surge include the end of the short-interest induced frenzy, a gradual slowdown in the number of new Covid-19 cases in the U.S., an improvement in global GDP growth estimates, and the likelihood that most of the Biden $1.9 trillion stimulus package will be approved by congress,” said CFRA’s Sam Stovall on Monday.

Bitcoin soared 13% to all-time-highs of $43,725.51 Monday morning after documents filed with the SEC revealed that Tesla invested $1.5 billion in the popular cryptocurrency. The electric vehicle maker also said it plans to accept the cryptocurrency as payment. Bitcoin’s previous record high was $41,946.74 on January 8.

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

Read more: Bank of America says investors might start selling stocks and buying bonds sooner than expected. Here’s when it could happen, and what to own for maximum income if yields keep rising.

The latest investor dipping into the SPAC space is US hedge fund Elliott Management, known for its activist leaning. The Wall Street Journal reported Elliott has been meeting with bankers to raise more than $1 billion to create a special-purpose acquisition company.

Dating app Bumble increased its IPO size to $1.8 billion on Monday, according to a regulatory filing. The company will now offer 45 million shares priced at between $37 to $39 per share.

Oil prices rose. West Texas Intermediate crude jumped as much as 1.44%, to $57.66 per barrel. Brent crude, oil’s international benchmark, gained 1.37%, to $60.16 per barrel, at intraday highs.

Gold rose 1.2%, to $1,834.50 per ounce.

Read more: GOLDMAN SACHS: Buy these 13 stocks poised to benefit from surging commodity costs – including 2 set to soar by more than 40%

 

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S&P 500, Nasdaq hit records as weak jobs report boosts chances of $1.9 trillion stimulus package

trader nyse pray
  • US stocks gained on Friday after the US Senate approved a budget measure that will enable the passage of a $1.9 trillion stimulus bill.
  • The move from the US Senate came hours before the January US jobs report missed expectations.
  • Also supporting stocks is Johnson & Johnson submission of its single-dose COVID-19 vaccine to the FDA for emergency use authorization.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stocks jumped on Friday after the US Senate approved a budget measure that will enable the passage of a $1.9 trillion stimulus bill without Republican support.

The vote in the US senate, in which Vice President Kamala Harris cast the tie-breaking vote, came hours before the January jobs report missed analyst estimates.

The US added just 49,000 jobs in January, well below the estimate for 105,000 new jobs. However, the unemployment rate continued to decline, falling to 6.3% from 6.7%.

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

Read more: Market wizard Michael Kean has averaged a 29% annual compounded return since starting his company 10 years ago. He shares his unique stock-picking strategy and 4 pieces of advice for anyone who wants to become a trader.

Also supporting stocks on Friday was Johnson and Johnson’s submission of its single-dose COVID-19 vaccine data to the FDA for emergency use authorization. The FDA could approve the vaccine in a matter of weeks, and Johnson and Johnson said it would supply the US with 100 million doses by the Summer.

GameStop and AMC Entertainment staged a small bounce on Friday after Robinhood removed all buying restrictions on the volatile stocks that staged a short-squeeze last week. 

Shares of Pinterest surged as much as 11% on Friday after the company reported earnings that beat analyst expectations. The social media platform said it added 100 million users in 2020.

The strong demand for Peloton bikes has led to extensive wait times for new customers, and the stock fell 6% after the company said it would invest $100 million to help shrink long wait times to more acceptable levels.

Oil prices rose. West Texas Intermediate crude jumped as much as 1.42%, to $57.04 per barrel. Brent crude, oil’s international benchmark, gained 1.27%, to $59.59 per barrel, at intraday highs.

Gold rose 0.34%, to $1,796.70 per ounce.

Read more: Investors are flocking to trade Dogecoin and other hot digital tokens on Voyager, a platform with no Robinhood-style restrictions. Its CEO says Bitcoin will hit $100,000 this year – and shares 3 other cryptocurrencies to watch.

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S&P 500 falls for the first time this week as US stocks edge lower

Stock trader
Shares of GameStop have staged a gravity-defying rally in recent weeks.

  • US equities fell on Friday after closing at record highs and the S&P 500 fell for the first time this week.
  • GameStop finished a chaotic week in the market after retail investors thwarted short sellers and volatility prompted a trading halt.
  • Watch major indexes update live here.

US equities fell on Friday after closing at record highs as investors weighed the outlook for President Joe Biden’s nearly $2 trillion stimulus bill and grew concerned amid reports that the new coronavirus variant may be deadlier. The S&P 500 fell for the first time this week. 

There is some evidence the new variant of the coronavirus first identified in the UK may be up to 30% more deadly than previous variants, the UK government has said.

A key gauge of US business activity swung higher this month as strong demand lifted manufacturers and service businesses alike. IHS Markit’s composite output index climbed to 58 from 55.3 in an early January reading, hitting its highest level in two months.

Credit- and debit-card spending accelerated through the first two weeks of January as stimulus passed by President Donald Trump bolstered households’ balance sheets. Card spending climbed 6% from the year-ago period over the week that ended January 16, Bank of America said in a Thursday note, citing aggregated card data.

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

Read more: GOLDMAN SACHS: Buy these 26 renewable-energy stocks best-positioned to benefit from increased spending as governments aim for net-zero emissions

GameStop surged as much as 78% on Friday as investors looking to thwart short sellers piled further into the stock and triggered a trading halt.

Shares of GameStop have staged a gravity-defying rally in recent weeks, with shares up as much as 307% year to date based on Friday’s intraday high.

The short seller Andrew Left of Citron Research tweeted that he was ending his bearish commentary on GameStop after he said an “angry mob” of investors harassed him and his family over the past 48 hours.

Canada’s Horizons ETF Management announced Friday that it filed its final prospectus to launch the Horizons Psychedelic Stock Index ETF (PSYK). It will be the first psychedelics ETF and begins trading on the Canadian NEO exchange on Wednesday.

Bitcoin recovered to $33,817 Friday afternoon after tumbling to about $28,000 in the early-morning hours. Comments from Janet Yellen, Biden’s Treasury secretary nominee, and a report of a “double spend” gave bitcoin investors a tumultuous week

Gold fell 0.61% to $1,854.60 per ounce. The dollar weakened against a basket of Group of 20 currencies, and Treasury yields fell slightly.

Oil prices fell but remained above the $50 support level. West Texas Intermediate crude dropped as much as 1.86% to $52.14 per barrel. Brent crude, oil’s international standard, declined 1.52% to $55.25 per barrel.

Now read more markets coverage from Markets Insider and Business Insider:

From stimulus checks to larger food stamps, here’s everything that’s in Biden’s 3rd wave of executive actions

Microsoft’s president defends its controversial PAC to employees in a leaked recording

Elon Musk says he’ll throw $100 million into carbon capture tech. VCs including Vinod Khosla told us these 4 startups are leading the way.

Read the original article on Business Insider

US stocks close at record highs after Joe Biden becomes 46th President of the United States

president biden
Joe Biden (L), flanked by incoming US First Lady Jill Biden is sworn in as the 46th US President by Supreme Court Chief Justice John Roberts on January 20, 2021


US stocks closed at record highs on Wednesday following the inauguration of Joe Biden as the 46th President of the United States.

The stock market was led higher by technology stocks following a stronger than expected earnings report from Netflix that sent shares soaring nearly 20%. 

The video-streaming company said it expected positive free-cash-flow generation going forward and would begin to stop relying on the debt markets to fuel its content lineup; it could eventually explore a stock-buyback program.

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

Read more: The head of active equity at Wells Fargo’s $607 billion asset-management arm shares how she worked her way up from the call center 29 years ago – and pinpoints 3 trends transforming the investment landscape today

The enthusiasm for tech shares on Wednesday also helped fuel a 6% surge in Alphabet to record all-time-highs.

Morgan Stanley reported fourth-quarter earnings that beat analysts’ expectations, driven by the firm’s trading unit and wealth-management arm.

Popular cryptocurrencies like Bitcoin and Ethereum pulled back on Wednesday after Janet Yellen, President-Joe Biden’s nominee for treasury secretary, said it might make sense to “curtail” their use because they are mainly used for illicit activities in a transactional sense.

Alibaba surged 7% after its founder, Jack Ma, resurfaced in a videoconference. Ma had not been seen in public for months as Chinese regulators clamped down on the Ant Group initial public offering and Alibaba’s selling practices.

Famed short-seller Jim Chanos said he transitioned his short exposure in Tesla to put options from shares, which will limit his downside potential. 

Oil prices were mixed. West Texas Intermediate crude jumped 0.12%, to $53.10 per barrel. Brent crude, oil’s international benchmark, declined 0.05%, to $55.87 per barrel.

Gold rose as much as 1.57%, to $1,869.10 per ounce.

Read more: GOLDMAN SACHS: Buy these 25 stocks best positioned to juice profits in 2021 as stimulus and vaccine progress spur economic growth

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US stocks flat as rollercoaster 2020 comes to a close

NYE Ball Drop
Waterford crystals were installed to the Times Square ball for New Years Eve Celebration in New York City, on December 27, 2020

  • US stocks opened mostly flat on Thursday morning to finish off a rollercoaster year for markets. 
  • Initial jobless claims declined by 19,000 to 787,000, beating the consensus estimate of 828,800.
  • Watch major indexes update live here.

US stocks opened relatively flat on Thursday morning to finish off a rollercoaster year for markets. 

The number of Americans filing for unemployment benefits for the first time dropped unexpectedly last week- the second straight week of declines. Initial jobless claims declined by 19,000 to 787,000. The consensus estimate was for jobless claims to rise to 828,800.

Meanwhile, continuing claims decreased to 5.22 million in the week that ended Dec.19. That’s 150,000 less than the 5.37 million claims economists projected.

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

Read more:We spoke with Wall Street’s 9 best-performing fund managers of 2020 to learn how they crushed the chaotic market – and compile the biggest bets they’re making for 2021

Several cryptocurrency exchanges including Crypto.com, Coinbase, and OkCoin said this week they were suspending trading of the XRP token following the SEC’s complaint against Ripple Labs, XRP’s developer. 

“XRP (the coin) is one foot in the grave,” Phil Liu, Chief Legal Officer at Arca, told Business Insider on Wednesday. “Ripple, the company, may be insolvent by the end of 2021 if it can’t raise money by selling XRP and its other products aren’t profitable.”

Oil prices were lower. West Texas Intermediate crude declined as much as 0.68%%, to $48.07 per barrel. Brent crude, oil’s international benchmark, was down 0.72% to $51.26 per barrel.

Gold was up 0.43%, to $1,901.60 per ounce.

Read more:Market wizard Jeff Neumann started trading with $2,500 and grew it to $50 million. He shares 6 timeless rules that helped him reach millionaire status in his first year.

 

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