S&P 500 flirts with record high as investors await Fed decision

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.

  • The S&P 500 hovered near a record high Monday as investors bet on continued growth and await a key Fed decision out this week.
  • Stocks have been aided in recent days by a fall in bond yields. The US 10-yr was flat Monday morning.
  • Bitcoin rallied above $39,000 after Elon Musk tweeted about Tesla and payments.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stocks opened mixed Monday morning as the S&P 500 flirted with a record high. Investors are eagerly awaiting for signals from the US Federal Reserve later this week about a timetable for scaling back ultra-accommodative policies. The decision is due Wednesday, with most economists anticipating the central bank will leave its policy mostly unchanged.

“With stocks at or near record highs, economic data and the outcome of the Fed’s FOMC meeting on Wednesday will be a primary focus this week,” said Oppenheimer’s John Stolztfus.

“In our view the risk of inflation that would prove to be stickier than most folks expect lies less with Fed policy than it does with fiscal policy and stimulus programs that are being considered and could come from Capitol Hill and the Administration’s efforts,” the chief investment strategist added.

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

Stocks have been aided in recent days by a fall in bond yields, driven by ongoing support from Fed policymakers and by investors betting that the sharp rise in inflation in April and May will prove transitory.

Yields – which move inversely to prices – fell sharply over the course of last week, as bonds had their best week in a year. Yet the yield on the key 10-year US Treasury note was roughly flat on Monday at 1.472% as the rally paused.

Bitcoin came close to $40,000 after Elon Musk suggested in a tweet that Tesla will resume cryptocurrency payments. Musk said he’ll allow it when there’s proof of about 50% of clean mining energy usage.

Lordstown Motors slumped 15% in early morning trading after two top executives announced their immediate resignation just days after the electric vehicle company said it may run out of cash. The stock is down roughly 43% year-to-date.

West Texas Intermediate crude was up 0.82% to $71.51 per barrel. Brent crude, oil’s international benchmark, gained 0.77% to $73.25 per barrel.

Gold slid 1.52% to $1,851 per ounce.

Read the original article on Business Insider

S&P 500 hits record high as traders sidestep hotter-than-expected-inflation reading

Happy trader
  • US stocks advanced Thursday, pushing the S&P 500 to a record high.
  • Investors pushed past a hotter-than-expected May inflation print of 5%.
  • Stocks also found support as fewer Americans filed for jobless claims last week.
  • See more stories on Insider’s business page.

The S&P 500 climbed to a record high Thursday in a winning session for US stocks as investors appeared to embrace the Federal Reserve’s signals that hot inflation readings will be temporary and that it will stick with economic support measures.

The broad-market index soared to a record high just under 4,240 and the Nasdaq Composite surpassed 14,000 for the first time since early May. The Dow Jones Industrial Average gained ground after a string of three consecutive losses.

Stock indexes had been mixed early Thursday after the Labor Department said consumer prices in May rose 0.6%, a higher rate than expectations of 0.5%. Headline inflation jumped to 5% year over year, outstripping expectations of 4.6% from an Econoday survey of economists.

Separately, government data showed claims by Americans seeking unemployment benefits reached their lowest since the start of the coronavirus outbreak. New claims last week clocked in at 376,000.

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

Federal Reserve officials have signaled to market participants that they see inflationary pressures as transitory and that the central bank is unlikely to raise ultra-low interest rates before 2023.

“It is perhaps testament to how effective the Fed’s adjustment in communication has been recently since today’s [inflation] reading would likely have caused a very different reaction if it had come before the gentle shift in tone that has reassured investors about the responsiveness of Fed policy,” said Chris Beauchamp, chief market analyst at IG, in a note.

Around the markets, GameStop lost nearly 30% during the session after the video game retailer said it may sell up to 5 million shares and that the Securities and Exchange Commission has requested information as part of its investigation into the trading of its shares.

Clean Energy Fuels stock sank after regulatory filings revealed the company’s largest shareholder, TotalEnergies SE, cut its stake by more than 10 million shares.

Gold rose 0.4% to $1,895.38 per ounce. Long-dated US Treasury yields turned lower, with the 10-year yield down at 1.465% to its lowest since early March.

Oil prices rose, with West Texas Intermediate crude up by 0.5% at $70.28 per barrel. Brent crude, oil’s international benchmark, was up 0.3%, at $72.42 per barrel.

Bitcoin climbed 4% to $38,000 before paring gains to trade around $36,665.80.

Read the original article on Business Insider

US stocks tick higher as investors await key labor-market data

worried trader
  • US stocks eked out small gains on Wednesday, with all three major indexes closing slightly higher.
  • Investors are preparing for two big jobs reports this week, with weekly jobless claims and May payrolls on deck.
  • AMC Entertainment’s Reddit-fueled rally continued.
  • See more stories on Insider’s business page.

US stocks ended slightly higher Wednesday as investors prepared for two key reports about the health of the country’s labor market as the COVID-19 pandemic wears on.

The Dow Jones Industrial Average and the S&P 500 eked out small gains but managed to hover near record highs. The Nasdaq Composite narrowly avoided its second straight loss to end the day in the green.

The day’s tepid gains came ahead of Thursday’s update from the government on weekly claims for unemployment benefits. Those figures will be followed by the Labor Department’s jobs report for May on Friday. Payrolls are expected to rise to 645,000 following April’s weaker figures.

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

“We’re in a bit of a holding pattern, where the major indices remain just below all-time highs but the momentum hasn’t been there for a test of those levels,” JJ Kinahan, chief market strategist at TD Ameritrade, said in a Wednesday note.

“It’s understandable, really, when you consider the possible ramifications of the data coming up not just this week with jobs but next week with May consumer prices. People may not be comfortable stepping into big new positions with so much news ahead and the Fed waiting in the wings,” he said.

Minutes released recently from the Federal Reserve’s policy meeting in April indicated the central bank is moving closer to discussions about potentially tapering economic support as the country recovers from the impact of the COVID-19 pandemic. On Wednesday, the Fed through its so-called Beige Book said the economy has expanded at a moderate pace from early April to late May. Relaxed social distancing measures and coronavirus vaccinations have boosted consumer spending at restaurants and for leisure travel, but price pressures have been building, it said.

Around markets, AMC Entertainment was back in the spotlight as shares more than doubled during the session, fueled by Reddit cheerleaders who overpowered a large stake sale by a hedge fund.

Bed Bath & Beyond surged as much as 54% after the housewares retailer said it’s launching its own private label brands. Meanwhile, Etsy is spending $1.6 billion to buy Depop, a social shopping app targeted at Gen Z shoppers. Shares of the online marketplace jumped.

Dogecoin climbed as much as 41% as the Coinbase Pro network begins to accept transfers of the meme currency.

Imax and Cinemark were downgraded to “Sell” ratings at Goldman Sachs.

Gold rose 0.3% to $1,906.91 per ounce. Long-dated US Treasury yields fell, with the 10-year yield down at 1.59%.

Oil prices extended gains after OPEC and its allies on Tuesday decided to continue restricting oil inflows into the market while they slowly increase supply. West Texas Intermediate crude gained 1.6%, to $68.81 per barrel. Brent crude, oil’s international benchmark, picked up 1.5%, to $71.33 per barrel.

Bitcoin tacked on 3.5% to trade at $37,978.88.

Read the original article on Business Insider

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