Dow jumps 261 points as investors brace for latest inflation data

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange.

  • The Dow jumped over 260 points Monday, while the Nasdaq Composite declined slightly.
  • Investors were getting ready for consumer price inflation data due Tuesday.
  • The inflation reading will arrive before next week’s Federal Reserve meeting.
  • See more stories on Insider’s business page.

US stocks closed mixed Monday as investors prepared for a monthly consumer inflation report due just before the Federal Reserve will meet to discuss its outlook on recovery in the world’s largest economy.

The Dow Jones Industrial Average moved solidly higher, rising 261 points, with UnitedHealth Group up and Chevron gaining as oil prices rose. But the Nasdaq Composite came under pressure and the S&P 500 eked out a small gain after five straight losses. Stocks started the session higher with some support coming from a decline in 7-day average COVID-19 infections.

This week’s economic calendar will include consumer price index inflation data for August on Tuesday. CPI is expected to come in at 5.3%, according to economists polled by Bloomberg.

“Investors don’t want to have massive positions before the inflation data as the risks are to the upside as COVID inflation continues to hamper supply chains. If inflation comes in hotter-than-expected, taper expectations could shift from December to November,” wrote Ed Moya, senior market analyst at Oanda, in a note.

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

The Fed’s two-day meeting will begin on September 21 and policy makers will release a summary of economic projections, or the dot-plot chart of interest-rate expectations.

Around the markets, MicroStrategymade another big purchase of bitcoin, bringing the value of its holdings of the most traded cryptocurrency to about $5.1 billion.

Litecoin surged and then sharply fell after a fake press release said that Walmart is partnering with the coin for payments.Mohamed El-Erian said supply chain disruptions around the world are set to continue for a few years, and warned high prices across economies could bring a return to a 1970s-style stagflationary environment.

Gold rose 0.2% to $1,792.71 per ounce. The yield on the US 10-year Treasury note slipped to 1.32%.

Oil prices climbed. West Texas Intermediate crude rose 1.2% to $70.55 per barrel. Brent crude, oil’s international benchmark, gained 0.8%, to $73.48 per barrel.

Bitcoin lost 3% to $44,733.16.

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US stocks rebound from multi-day skid as concerns over Fed stimulus slowdown ease

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US stocks jumped higher on Friday, partly rebounding from a four-day losing streak as concerns over the Fed’s tapering schedule began to ease.

Investors have been looking for clues as to when the Federal Reserve may begin to wind down its monthly $120 billion bond purchases implemented amid the COVID-19 pandemic to shore up credit markets. But a weak August jobs report has investors less concerned about the tapering schedule as the Fed leans more dovish.

President Biden’s more than hour-long conversation with Chinese President Xi Jinping could also be lifting market sentiment on Friday, as hope builds that trade relations between the two countries will be improved.

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

Shares of buy now, pay later provider Affirm soared as much as 22% on Friday after the company reported better-than-expected revenue for its fiscal fourth-quarter, and raised revenue guidance for its fiscal year of 2022.

Cathie Wood’s Ark Invest sold more than $100 million worth of Tesla this week, according to daily trade updates. The sales come even as Ark believes Tesla could soar 300% from current levels.

Oil prices jumped. West Texas Intermediate crude was up as much as 2.35%, to $69.74 per barrel. Brent crude, oil’s international benchmark, jumped 2.18%, to $73.01 per barrel.

Gold fell as much as 0.21%, to $1,796.30 per ounce.

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US stocks fall as traders remain cautious on economic growth outlook

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange (NYSE)

US stocks closed lower on Thursday as investors remained cautious on the outlook for global growth in light of recent economic data. Every sector within the S&P 500 besides financials fell.

Weekly jobless claims fell to 310,000 last week, setting a fresh pandemic-era low, according to Thursday data from the Labor Department. Economists expected claims to slide to 335,000. The print marked a second straight weekly decline.

Momentum also faded in light of the Federal Reserve’s August Beige Book, which noted that economic growth downshifted last month.

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

GameStop slid as much as 10% before paring losses Thursday after the video gamer retailer favored by social media traders posted a quarterly adjusted loss that was wider than anticipated and opted not to offer specific financial guidance.

Bitcoin traded around $46,600 Thursday morning after slipping near $44,000 in the early morning hours. The world’s largest cryptocurrency is being outperformed by Solana, which hit an all-time high of $216.47 overnight. The altcoin is up over 420% in the last month

West Texas Intermediate crude slide as much as 1.82%, to $68.04 per barrel. Brent crude, oil’s international benchmark, slid 1.72%, to $71.35 per barrel, at intraday lows.

Gold was steady around $1796 per ounce.

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US stocks mixed as investors weigh better-than-expected jobless claims against growth concerns

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US stocks were mixed on Thursday, with the S&P 500 and Dow Jones down for the third straight day and the Nasdaq posting a slight gain as investors digested data that showed fewer Americans filed for unemployment benefits than economists forecasted.

Weekly jobless claims fell to 310,000 last week, setting a fresh pandemic-era low, according to Thursday data from the Labor Department. Economists expected claims to slide to 335,000. The print marked a second straight weekly decline.

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

The Federal Reserve said there’s been a slight deceleration in economic activity from the moderate pace of recovery in early July through August in its Beige Book report on Wednesday. Wall Street is eagerly awaiting further signals from the central bank over its timeline for scaling back its pandemic-era stimulus measures.

Four Federal Reserve officials signaled on Wednesday that the central bank could start tapering its asset purchases later this year, despite a disappointing August jobs report.

Bitcoin traded around $47,000 Thursday morning after slipping near $44,000 in the early morning hours. The world’s largest cryptocurrency is being outperformed by Solana, which hit an all-time high of $216.47 overnight. The altcoin is up over 420% in the last month.

West Texas Intermediate crude fell 1.6% to $68.18 per barrel. Brent crude, oil’s international benchmark fell 1.25% to $71.68 per barrel.

Gold was steady around $1,795.

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Global stocks slide for a 3rd day as investor jitters grow over the withdrawal of central bank stimulus

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  • Global stocks fell for a third straight day on Thursday ahead of the ECB’s monetary policy decision.
  • The Fed once again said it will taper its asset purchases this year, backed up a monster jobs report.
  • Hong Kong’s Hang Seng slid after Tencent and NetEase shares dropped more than 6% each.
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Global stocks fell for a third day Thursday, as investors cast further doubt on the sustainability of current valuations ahead of upcoming central bank meetings, with investors in Europe expecting the main highlight to be the European Central Bank’s policy decision.

Futures on the Dow Jones, S&P 500, and Nasdaq were down by about 0.2% as of 4:10 a.m. ET, suggesting a modestly lower start to trading later in the day. The MSCI World Index dropped 0.3%, marking its third straight decline. The index hit a record high on Tuesday.

A number of Federal Reserve officials signaled on Wednesday that the central bank could start tapering its asset purchases later this year, despite a disappointing August jobs report last week. “The big picture is that the taper will get going this year and will end sometime by the first half of next year,” St. Louis Fed Bank President James Bullard said in an interview with the Financial Times.

The Fed’s comments were backed up by a monster 10.9 million US job openings that suggest employment isn’t the issue – it’s getting Americans to take those jobs, Jeffrey Halley, senior market analyst at OANDA said.

Fed policymakers will meet once again in two weeks on September 21 and 22.

Even though the S&P 500 pulled back just 0.5% by Wednesday’s close, it was the third straight daily loss for the benchmark index, its longest losing streak since mid-July. Consumer durables and energy were among the largest laggards in the US, while in Europe autos and industrial goods underperformed by the close, Deutsche Bank strategists said.

“We have a lot of uncertainty pulling markets in both directions, with no clear theme developing and plenty of risks circling,” Halley added.

In Europe, all eyes are on the ECB’s upcoming interest-rate decision, expected at 7.45 a.m. ET. With inflation picking up in the eurozone, investors will tune carefully into any hints bank president Christine Lagarde may give about the likely outlook for its huge asset-purchase program.

Deutsche Bank’s European economists expect the ECB to announce a reduction in the purchase pace under the Pandemic Emergency Purchase Programme. They think it’s slightly more likely to happen now than in December, but there’s still a risk the ECB could delay any decision until then.

London’s FTSE 100 fell 0.9%, the Euro Stoxx 50 fell 0.5%, and Frankfurt’s DAX lost 0.3%.

In Asia, Chinese inflation hit a 13-year high in August due to surging prices of raw materials.

Hong Kong equities took a hit as Tencent and NetEase shares dropped more than 6% each after they were among video-game firms to be summoned to a regulatory meeting meant to serve as a reminder about restrictions on game-time for children.

The Shanghai Composite rose 0.4%, Tokyo’s Nikkei fell 0.5%, and Hong Kong’s Hang Seng slid 2.4%.

Oil prices were broadly flat, with Brent crude up 0.1% at $72.51 a barrel and West Texas Intermediate rising 0.3% to $69.08 a barrel.

The cryptocurrency market looked somewhat stable after the sell-off that ensued alongside El Salvador’s adoption of bitcoin as a legal currency. Bitcoin rose 2% to $46,308, ether rose 6% to $3,497, while other coins were all in the green.

Read More: Why crypto crashed: 4 experts break down what Tuesday’s sudden drop might mean for the altcoin season and NFT frenzy – and share 12 high-quality tokens that are likely to continue rallying towards the year end

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US stocks falls as investors worry over prospects of a slowing economic recovery

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Traders on the floor of the NYSE.

  • Major indexes fell Wednesday, stretching losses from the previous day’s session.
  • The Nasdaq Composite slipped from record highs notched on Tuesday.
  • A report from the Fed said the central bank was observing a slight slowdown in economic activity.
  • See more stories on Insider’s business page.

US stocks closed lower Wednesday as investors assess more signs of a slowdown in the economy’s recovery following a pandemic-led recession last year.

The Dow Jones Industrial Average added to losses from the previous session and Nasdaq Composite declined from Tuesday’s record high.

The Federal Reserve in its so-called Beige Book report Wednesday afternoon said there’s been a slight deceleration in economic activity from the moderate pace of recovery in early July through August. Stock investors have been showing some caution after last week’s US August jobs report, with the 235,000 payroll additions falling fall far short of expectations.

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

The Fed’s report, which characterizes changes in economic conditions across its 12 districts, said the deceleration was largely attributable to a pullback in dining out, travel, and tourism, reflecting safety concerns due to the rise of the Delta variant of the coronavirus.

The Fed will hold a two-day meeting starting on September 21 and will release its summary of economic projections, or its dot-plot chart of interest-rate expectations.

Around the markets, Coinbase shares fell, with the Securities and Exchange Commission planning to sue the crypto exchange if it releases its lending product, a move that led CEO Brian Armstrong to complain about the regulator’s “sketchy behavior”.

Globalstar soared on ongoing speculation that its satellite communication technology may be included in Apple’s new iPhone models.

Gold fell 0.2% to $1,789.73 per ounce. The yield on the US 10-year Treasury note fell to 1.33%.

Oil prices climbed. West Texas Intermediate crude rose 1.5% to $69.34 per barrel. Brent crude, oil’s international benchmark, gained 1.3%, to $72.65 per barrel.

Bitcoin fell by 1% to $46,326.77 after plunging Tuesday during El Salvador’s rocky rollout of the cryptocurrency as legal tender.

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US stocks mixed with Nasdaq hitting records as investors mull prospects for the economy

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US stocks were mixed on Tuesday, with the Nasdaq hitting record highs while the Dow Jones Industrial Average fell more than 250 points.

Ongoing economic uncertainty was in focus on Tuesday after Goldman Sachs downgraded its 2021 GDP forecast to 5.7% from a prior estimate of 6.2% due to the ongoing spread of the COVID-19 Delta variant. The downgrade came after last week’s soft August jobs report, with the US adding only 235,000 jobs.

“The Delta variant is already weighing on Q3 growth, and fading fiscal stimulus and a slower service-sector recovery will both be headwinds in the medium term,” Goldman said.

But mega-cap tech stocks shined on Tuesday, with both Apple and Netflix cruising to record all-time highs. Apple sent out invitations for a September 14 media event where it will likely reveal its iPhone 13 lineup.

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

Bitcoin and ether both staged intra-day declines of about 20% on Tuesday, while other altcoins like dogecoin fell about 30%. The moves in crypto came as El Salvador officially adopted bitcoin as legal tender on Tuesday.

The heightened volatility in cryptocoins caused a service disruption at Coinbase, causing shares to fall as much as 6%. The crypto exchange platform said some transactions were delayed or canceled, but the issue has since been resolved.

Shares of Match Group soared as much as 15% in early Tuesday trades after it was selected to be added to the S&P 500 index later this month.

Solana’s sol token rocketed 37% higher in the past 24 hours as the cryptocurrency pulled in record investments thanks to its DeFi and NFT capabilities.

George Soros slammed BlackRock’s investment push into China as a “tragic mistake” that will ultimately hurt the US.

Shares of Tesla jumped as much as 4% to its highest level in four months amid a bullish technical setup in which its 50-day moving average crossed above its 200-day moving average.

Oil prices fell. West Texas Intermediate crude was down as much as 1.63%, to $68.16 per barrel. Brent crude, oil’s international benchmark, fell 0.83%, to $71.64 per barrel.

Gold fell as much as 2.02%, to $1,796.60 per ounce.

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US stocks are ‘priced to perfection and vulnerable’, and the S&P 500 needs a 15% correction to position for inflation and higher interest rates, Morgan Stanley says

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  • Morgan Stanley’s Lisa Shalett doubled down on her call that the S&P 500 is due for a 10%-15% correction before year end.
  • The benchmark index hasn’t seen a correction greater than 10% since March 2020.
  • But Shalett warns the continued strength of the market indicates stocks have not repriced risk in any meaningful way.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stocks are vulnerable and need a correction to reposition for higher inflation and higher interest rates, Morgan Stanley’s Lisa Shalett said.

In a Tuesday note, the chief investment officer of the firm’s wealth management division reiterated her call that the S&P 500 is due for a correction of 10%-15% before the end of the year.

The benchmark index hasn’t seen a correction greater than 10% since the start of the pandemic in March 2020. Since then, it has continued to grind higher, with the S&P 500 notching 54 record highs over the course of this year.

But Shalett warned that the continued strength of the market isn’t constructive, and instead indicates that stocks have not repriced risk in any meaningful way.

As the S&P 500 has surged, COVID-19 hospitalizations have ticked higher, consumer confidence has plummeted, geopolitical tensions in the middle east have risen, and the Federal Reserve has ramped up its talk of tapering asset purchases and raising interest rates, she said.

“While we see the economic cycle and the bull market remaining intact, we think a correction is necessary to restore risk premiums and preserve forward returns for selective and active stockpickers,” said Shalett. “The broad index needs to pause, consolidate its historic run and position for lower liquidity, higher real interest rates and higher inflation.”

The CIO explained that what’s really driving the market’s current upward movement is investor faith that the Federal Reserve will delicately adjust its monetary policy without making any mistakes.

“Increasingly, we see this market’s relentless rise as a product of masterfully nuanced communications from the Federal Reserve and, in particular, Chair Jerome Powell,” said Shallet.

The August Jackson Hole meeting was expected to shed light on the Fed’s timeline for tapering, but was light on specifics. Shalett said the policymakers were successful at reiterating their view that inflation will be transitory, and tapering is not tightening policy.

In reaction to the Fed meeting, “both stock and bond investors cheered, leaving asset bubbles and financial stability concerns be damned,” Shalett noted.

Against this backdrop, investors should consider taking profits in index funds now and rebalancing their portfolios towards high-quality cyclicals, especially financials stocks, and dividend paying sectors like consumer staples, consumer services, and health care, the CIO said.

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US stocks fall after massive miss on August jobs report

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US fell Friday after the August jobs report badly missed economist expectations.

The US added 235,000 payrolls in August, badly missing the median estimate of 733,000 added jobs. Meanwhile the unemployment rate fell to 5.2% from 5.4%, matching estimates. The month demonstrated the influence the coronavirus Delta variant had on the labor market recovery.

The report has prompted hopes that the Fed will continue its support for the economy for longer.

“The Fed has hung its hat on the assumption that people are starting to return to work, and unfortunately today’s number will be a disappointment to them,” said Seema Shah, Principal Global Investors’ chief strategist. “After having indicated a taper was likely in the next few months, August payrolls perhaps throws that into disarray.”

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

Shah said that while inflation has clearly met levels that indicate “substantial further progress” in the economy, it doesn’t appear to have made a sufficient impression on the Federal Reserve. The US central bank appears much more focused on the employment recovery, and today’s disappointing number may sway the Fed to not scale back its asset purchases until November, or potentially later, she added.

“Friday’s weaker-than-expected jobs puts less pressure on the Fed to taper its stimulus, which is likely to provide a short-term boost for stocks. The stock market loves stimulus and any indication that the Fed will remain fully accommodative is good news for investors,” said Jay Pestrichelli, CEO of investment firm ZEGA Financial.

Warren Buffett’s deputy snowballed his retirement account from $70,000 to $264 million in under 30 years. Ted Weschler explained his strategy, including how he shrugged off investment losses and amassed wealth in a recent interview.

Bitcoin held steady at around $50,800 Friday morning after breaking the $50,000 barrier on Thursday.

West Texas Intermediate crude jumped as much as 0.60%, to $70.40 per barrel. Brent crude, oil’s international benchmark, gained 0.78%, to $73.60 a barrel.

Gold climbed 0.92%, to $1,828.10 per ounce.

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S&P 500 hits 54th record close of the year ahead of crucial jobs report

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  • US stocks closed higher on Thursday as investors await Friday’s crucial jobs report.
  • The S&P 500 closed at a record high for the 54th time of the year, while the Nasdaq also hit a new record close.
  • Jobless claims fell to 340,000 last week, beating Bloomberg economist estimates of 345,000.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stocks gained on Thursday, with the S&P 500 and Nasdaq both closing at record highs ahead of Friday’s crucial jobs report. For the S&P 500, it was the 54th record close of 2021.

The August jobs report will likely influence the Fed’s decision as to when to and how much it should taper its monthly bond purchases of $120 billion, which was put into place to calm credit markets during the pandemic.

Meanwhile, jobless claims fell to their lowest level since March 2020 last week, hitting 340,000. That beat economist estimates of 345,000. Continuing claims fell to 2.75 million for the week, coming in slightly below estimates.

The jobless claims data signals ongoing strength in the economic recovery from COVID-19, which coincides with a strong second-quarter earnings season from S&P 500 companies.

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

Despite the stock market’s ongoing record surge, there are still risks that could derail the historic rally. DataTrek’s Nicholas Colas outlined seven potential risks that could push stocks lower into year-end.

Shares of Chewy plunged as much as 10% after second-quarter earnings results missed analyst estimates and showed a slow-down in growth.

The US division of Binance is considering an IPO within the next three years as cryptocurrency interest soars among investors.

Also in crypto, the IRS said it posed as a crypto trader called “Mr. Coins” in a $180,000 dark-web drug sting. Cryptocurrencies are often used as a form of payment for dark-web marketplaces.

Beijing will set up a new stock exchange in the capital to support and facilitate the development of small and medium sized businesses, China’s president Xi Jinping said on Thursday.

Cardano’s ada cryptocurrency soared above $3 for the first time ever on Thursday after network upgrades enabled smart contracts. Meanwhile, JPMorgan believes the surge in retail trading spilled over to cryptocurrency altcoins that have seen a surge in popularity this summer.

Oil prices jumped. West Texas Intermediate crude was up as much as 1.71%, to $69.76 per barrel. Brent crude, oil’s international benchmark, rose 1.70%, to $72.81 per barrel.

Gold fell as much as 0.24%, to $1,811.60 per ounce.

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