US stocks edge higher as inflation data shows prices continued to surge in September

A trader works on the trading floor at the New York Stock Exchange (NYSE) at the opening of the market in New York City, U.S., August 26, 2019.

US stocks were higher on Wednesday after inflation continued to rise in September amid continued supply chain bottlenecks.

The Consumer Price Index – a commonly used measure of US inflation – rose 0.4% last month, exceeding the median forecast of a 0.3% gain from economists surveyed by Bloomberg. The print shows price growth unexpectedly picking up from the 0.3% jump seen through August.

While the Delta variant began to subside in late September, supply bottlenecks are still plaguing businesses and consumers.

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

The prospect of hot inflation alongside stalled economic growth has weighed on markets, and a surge in energy prices fueled concerns that higher inflation may be less transitory than the Federal Reserve is predicting, said Nancy Davis, founder of Quadratic Capital Management and portfolio manager of an exchange-traded fund.

“If the recent pace of elevated inflation continues, that could push the Federal Reserve to start removing accommodation sooner rather than later, which could hurt stocks and other risk assets,” she said in a note Wednesday.

How inflation will affect the economy still recovering from the depths of a pandemic recession remains center stage for many economists and analysts. Fed officials have been hinting that the central bank appears on track to fully taper off assets purchases by the middle of 2022.

“Wednesday’s Consumer Price Index coincides with the start of third-quarter earnings season, and investors will be looking to see if inflation is starting to negatively affect corporate profits in a significant way,” Davis said.

JPMorgan Chase reported earnings Wednesday. The largest US bank reported third-quarter earnings that beat analyst expectations, driven by a strong performance in its investment banking division.

In cryptocurrencies, Binance will end the use of the Chinese yuan on its peer-to-peer platform. The company, which is one of the world’s largest exchanges, is set to discontinue support for the Chinese currency on December 31 this year, it said in a statement Wednesday.

Oil prices slipped. West Texas Intermediate crude slipped 0.67% to $80.12 per barrel. Brent oil, the international benchmark, turned lower, down 0.74% to $82.80.

Gold rose 0.89% to $1,776.08 per ounce.

Read the original article on Business Insider

Oil prices jump to 7-year highs after OPEC+ agrees to stick to gradual production hikes

Smoke blows past oil wells at sunset on the eastern flank of the 16,000-plus-acre Guiberson fire, burning out of control for a second day as Red Flag warnings continue in southern California on September 23, 2009 near Moorpark, California.
Oil wells at near Moorpark, California.

  • Oil prices spiked after OPEC+ agreed to keep its existing schedule of gradual hikes in oil production.
  • WTI crude, the US oil benchmark, rose to its highest since 2014. Brent crude also gained.
  • OPEC+ ignored growing calls for opening the taps at a faster rate to bring down prices.
  • See more stories on Insider’s business page.

Oil prices spiked after OPEC+ on Monday agreed to keep its existing schedule of gradual hikes in oil production, adding to inflationary pressures engulfing global markets.

West Texas Intermediate crude, the US oil benchmark, rose as much as 3% to $78.13 per barrel, its highest since 2014. Brent crude, oil’s international benchmark, jumped as much as 3% to $81.77 per barrel.

The Organization of the Petroleum Exporting Countries as well as Russia and other non-member allies – also known as OPEC+ – ignored growing calls for opening the taps at a faster rate to bring down prices after oil rocketed to more than 50% this year.

Instead, the group “reconfirmed the production adjustment plan” to raise monthly overall production by 400,000 barrels per day in November, according to a statement released after the discussions.

In July, OPEC+ agreed to boost production by 400,000 barrels per day each month beginning August until at least April 2022, according to a statement. OPEC+ will meet again on November 4 to discuss the next monthly production quota.

The rapid ascent in oil prices comes amid a surge in demand for the commodity as major economies around the world simultaneously restarted after the devastation brought about by the pandemic lockdown. Bank of America last week said Brent crude could hit $100 a barrel for the first time since 2014, especially ahead of another cold winter.

Rather than increasing output by 400,000 barrels per day, adding 800,000 to the market in November would likely reflect the current market condition, according to Rob Thummel, portfolio manager at Tortoise, a firm that manages $8 billion in energy-linked assets.

But he acknowledged OPEC+ retains most of the leverage over the oil market. “OPEC+ holds all of the cards because they have available oil supply capacity that can be returned to the global markets in days.”

Read the original article on Business Insider

US stocks hover near record highs as investors await Fed Chair Powell’s latest speech

Stock Market Traders

US stocks hovered near record highs Wednesday as investors awaited a key speech by Federal Reserve Chair Jerome Powell later this week during the high-profile annual Jackson Hole conference of central bankers.

The benchmark S&P 500, which attained its 50th record close of 2021 on Tuesday, edged higher. The tech-heavy Nasdaq 100 and the Dow Jones Industrial Average also climbed.

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

All eyes will be on Powell’s speech for any indication of when the central bank will reduce its support for the US economy, which has staged an impressive rebound, by winding down asset purchases.

Some though, including economist Mohamed El-Erian, think the event will offer little direction.

But Lauren Goodwin, economist and portfolio strategist at New York Life Investments, believes the Fed may continue its slow and steady move towards tapering asset purchases.

“Assuming two more strong jobs reports – four strong reports make a trend – tapering on purchases may begin in November or December, slightly earlier than our previous base case of January,” she said in a note on Wednesday. “Market participants are well prepared.”

Stocks have been scaling new highs despite the surge in the spread of the Delta variant. On Tuesday, major indexes closed at record highs, following the full approval of a COVID-19 vaccine a day earlier.

US bond yields fell slightly on Wednesday, with the key 10-year US Treasury yield slightly lower at 1.294%. Yields move inversely to prices.

Oil prices surged following a deadly fire on a Mexican offshore oil rig.

West Texas Intermediate crude rose 0.71% to $68.02 per barrel. Brent crude, oil’s international benchmark, gained 0.89%, to $71.68 per barrel.

Gold slipped 0.33% to $1,796.19 per ounce.

Bitcoin slipped to $47,853.70 after briefly breaching the $50,000-level.

Read the original article on Business Insider

Oil slumps 4% as dismal data from China highlights supply-chain risks associated with Delta variant

Mercer Street oil tanker
  • The price of crude oil fell as much as 4% on Monday after pessimistic industrial and retail data out of China signaled an economic growth slowdown.
  • Chinese retail sales, industrial production, fixed-asset investment, and unemployment all came in below expectations, according to official data released Monday.
  • Last week, the International Energy Agency said that the resurgent Delta variant posed a significant risk to rising oil demand, especially in Asia, and slashed projections for the second half of the year.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

The price of crude oil fell as much as 4% on Monday after pessimistic industrial and retail data out of China highlighted signaled a Delta variant-driven slowdown in economic activity.

July economic data released by China’s statistics bureau on Monday revealed misses across the board. Retail sales, industrial production, fixed-asset investment, and unemployment all came in below expectations, underscoring the costs of China’s tough “zero COVID” approach to new waves of infection.

“July’s data suggest the economy is losing steam very fast,” Raymond Yeung, chief China economist at ANZ, told Bloomberg. “The resurgence of Delta also adds extra risk to August’s activities.”

Delta has spelled complications for supply chains running through China. Last week, the country partially shut down the Ningbo-Zhoushan port in eastern Zhejiang province, one of the world’s busiest, after a few workers contracted COVID. Freight rates have surged and shipping reliability has cratered as pandemic bottlenecks throttle global commerce.

Last week, the International Energy Agency said that the resurgent Delta variant posed a significant risk to rising oil demand, especially in Asia, and slashed projections for the second half of the year. The IEA now expects 500,000 barrels per day lower production, driven by lower demand.

“We now estimate that demand fell in July as the rapid spread of the COVID-19 Delta variant undermined deliveries in China, Indonesia, and other parts of Asia,” the agency said.

The oil slump came alongside broader weakness in global stocks, as the weak Chinese data bit into markets that have only marched upward in recent weeks.

WTI futures were trading at $66.66 as of 10:30 a.m. ET, down 2.6% on the day.

Read more: Bank of America warns historically high valuations and slowing earnings growth put the stock market at risk of a 16.5% drop – and names 3 sectors that are safe to hide out in

Read the original article on Business Insider

US stocks climb amid optimism around Biden’s COVID-19 plan and stimulus push

NYSE traders
  • US stocks gained on Thursday as investors cheered the Biden administration’s plan to better tackle the COVID-19 pandemic.
  • President Joe Biden on Wednesday revealed plans to accelerate testing, vaccine rollouts, and reopenings.
  • Initial jobless claims fell to 900,000 last week, according to the Labor Department. Economists expected claims to total 935,000.
  • Watch major indexes update live here.

US equities rose on Thursday as investors bet on the Biden administration to accelerate the nation’s economic recovery.

President Joe Biden unveiled new plans for how the government will tackle the coronavirus pandemic on Thursday. The president aims to sign 10 executive orders and invoke the Defense Production Act to accelerate testing, vaccine distribution, and reopen schools and businesses.

Efforts to better curb on the virus’s spread are set to join a push for additional fiscal support. The president called for a $1.9 trillion stimulus package earlier in the month that includes $1,400 direct payments, expanded unemployment insurance, and relief for states and municipalities.

Republicans are likely to oppose the measure, having previously balked at passing new aid for governments. Still, expectations for another large-scale spending bill have led analysts to lift growth forecasts and S&P 500 targets.

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

Read more: The chief investment strategist at a $9.6 billion volatility-focused money manager breaks down why the stock market is poised to get more chaotic in 2021 – and shares how investors can take advantage of it

Tech stocks continued to climb after Netflix’s healthy earnings beat boosted indexes the session prior. Equities hit record highs on Wednesday as Biden’s inauguration amplified hopes for fresh fiscal stimulus and a stronger economic recovery. The jump was the largest Inauguration Day return in nearly a century.

In economic data, weekly filings for unemployment benefits totaled an unadjusted 900,000 last week as the labor market’s recovery continued to push up against elevated COVID-19 cases. Economists surveyed by Bloomberg expected claims to reach 935,000. 

Continuing claims, which track Americans receiving unemployment-insurance payments, fell to 5.1 million for the week that ended January 9. That came in below the median economist estimate of 5.3 million claims.

“Fiscal stimulus prospects, along with broader vaccine diffusion, are pointing to a brightening labor market outlook but with the pandemic still raging, claims are poised to remain elevated in the near-term,” Lydia Boussour, lead US economist at Oxford Economics, said.

Read more: We spoke to Winklevoss-backed crypto platform Gemini about bitcoin, how to use stable coins, and why regulation won’t kill the boom in digital currencies

United Airlines sank after its fourth-quarter report missed Wall Street expectations for revenue and profit. The company cautioned that, despite vaccines being distributed nationwide, the pandemic will weigh on travel activity throughout 2021.

Bitcoin slid below the $32,000 support level as sell-offs cut further into the cryptocurrency’s bullish momentum. The token hit a 24-hour low of $31,310.75 before paring some losses.

Gold dipped as much as 0.7%, to $1,858.42 per ounce. The dollar weakened against a basked of Group-of-20 currencies and Treasury yields climbed slightly.

Oil prices fell but remained above the $50 support level. West Texas Intermediate crude dropped as much as 1.1%, to $52.75 per barrel. Brent crude, oil’s international standard, declined 1%, to $55.51 per barrel, at intraday lows.

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

GOLDMAN SACHS: These 22 stocks still haven’t recovered to pre-pandemic levels – and are set to explode amid higher earnings in 2021 as the economy recovers

The S&P 500 will jump another 8% – but looming risks could spark a sudden pullback, RBC says

‘Final nail in the bear case coffin’: Here’s what 4 analysts had to say about Netflix’s 4th-quarter earnings

Read the original article on Business Insider

Dow drops 200 points as traders mull Biden’s stimulus plan and soft retail-sales data

trader upset
  • US stocks sank on Friday as investors digested President-elect Joe Biden’s stimulus plan and a December slump in retail sales.
  • Biden rolled out a $1.9 trillion relief proposal on Thursday that includes $1,400 direct payments, state and local government aid, and expanded unemployment benefits.
  • While Democrats’ soft Senate majority increases the odds of a deal being passed, Republican opposition could strip the bill of some elements or push for higher taxes to offset its cost.
  • Retail sales shrank 0.7% in December as COVID-19 lockdowns cut into holiday-season spending, according to Census Bureau data published Friday. Economists expected sales to hold flat from November.
  • Watch major indexes update live here.

US equities fell on Friday amid a drop in retail sales and concerns that President-elect Joe Biden’s stimulus proposal could lift taxes.

Biden unveiled a $1.9 trillion fiscal relief plan on Thursday that includes $1,400 direct payments, expanded federal unemployment benefits, and state and local government aid. Democrats’ victories in Georgia runoff elections greatly improve the party’s chances at passing such a sweeping stimulus measure.

Yet GOP opposition could strip the bill of some components before its passage. Lawmakers could also call for higher taxes to justify the legislation’s hefty price tag, a move that would surely rankle investors hoping for President Donald Trump’s low tax rates to remain in place.

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

Read more: Global X’s lithium and battery ETF returned 126% in 2020 as electric vehicle-driven demand surged. One of the firm’s analysts shared 4 stocks he sees ‘leading the rise’ in the industry going forward.

“The very health of our nation is at stake,” Biden said in a speech revealing the plan, adding that failure to pass a large-scale relief package “will cost us dearly.”

Stocks extended losses after retail sales data showed a third-straight monthly decline to close out last year. Spending at US retailers contracted 0.7% in December as COVID-19 restrictions offset holiday-season sales, according to Census Bureau data published Friday. Economists surveyed by Bloomberg expected sales to stay flat from the month prior.

November’s reading was revised lower to a 1.4% contraction, suggesting surging coronavirus cases and lockdown measures swiftly cut into a V-shaped rebound in consumer spending.

“This likely is the nadir for retail sales, as the late-December stimulus and the pending stimulus under the Biden administration will boost both bank accounts and consumers’ spirits,” Robert Frick, corporate economist at Navy Federal Credit Union, said.

Read more: ‘I don’t believe that we’ve really left the recession yet’: Bond king Jeff Gundlach lays out the 2 risks that investors should watch nearly a year into the pandemic – and shares the 4 components of a balanced, winning portfolio

Fourth-quarter earnings kicked off with JPMorgan beating revenue and profit expectations. The bank reported a 42% jump in net income, bolstered by the release of $2.9 billion in loan-loss reserves.

Citigroup reported less-than-stellar results Friday morning. While the bank’s revenue landed above estimates, weaker-than-expected performance in its fixed-income division contributed to a miss on quarterly earnings. The business reported revenue of $3.09 billion over the period, below the consensus expectation of $3.2 billion.

Bitcoin dropped below $38,000 as the cryptocurrency’s volatile trading week came to a close. The token climbed back above $40,000 on Thursday but failed to retake the record highs seen one week ago.

Spot gold slid 0.5%, to $1,836.64 per ounce, at intraday lows. The US dollar strengthened against the majority of Group-of-10 currency peers and Treasury yields declined. 

Oil prices sank as the stronger dollar cut into its recent climb. West Texas Intermediate crude fell as much as 1.7%, to $52.68 per barrel. Brent crude, oil’s international benchmark, dropped 1.9%, to $55.37 per barrel, at intraday lows.

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

Cathie Wood’s ARK Invest runs 5 active ETFs that more than doubled in 2020. She and her analysts share their 2021 outlooks on the economy, bitcoin, and Tesla.

Monetary stimulus will remain in place well into economic recovery, Fed Chair Powell says

US consumer comfort tumbles to lowest point since July as COVID-19 surge cuts further into recovery optimism

Read the original article on Business Insider

US stocks climb as investors buy Monday’s dip on recovery hopes

trader screen
  • US stocks gained slightly on Tuesday as investors bought Monday’s dip and bet on fresh stimulus and COVID-19 vaccines to fuel a near-term economic rebound.
  • While the Biden administration is set to detail a sweeping fiscal stimulus plan on Thursday, investors continue to weigh whether stocks can remain at their lofty levels.
  • Bitcoin recovered slightly from its Monday nosedive but remains well below the records it hit last week.
  • Oil prices gained as the US dollar weakened against currency peers. West Texas Intermediate crude rose as much as 1.9%, to $53.26 per barrel.
  • Sign up here our daily newsletter, 10 Things Before the Opening Bell.

US stocks edged higher on Tuesday as investors optimistic for a full economic rebound bought the market’s recent dip.

Hopes for widespread vaccination and Biden-backed stimulus continue to lock horns with stocks’ lofty valuations. Fallout from last week’s violent riots at the Capitol continues to weigh on market sentiments, and Democrats are expected to vote to impeach President Donald Trump on Wednesday.

Shambolic vaccine distribution across the US has also cut into some investors’ recovery outlooks. CNBC reported Tuesday morning that the Trump administration will issue updated vaccination guidance that expands eligibility to everyone 65-years-old and older. The move comes after some states discarded vaccines instead of using them on ineligible populations.

“Vaccine rollouts have been messy, but as more vaccines get regional approval, risk appetite is thriving as we get closer to the other side of COVID,” Edward Moya, senior market analyst at Oanda, said.

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

Read more: Goldman Sachs says to buy these 29 stocks poised to deliver the strongest sales growth through year-end

The mild uptick comes after stocks stumbled to start the week. Equities fell from record highs on Monday as investors weighed the impact of an impeachment vote and stretched valuations. Facebook and Twitter dragged on major indexes as investors balked at the companies’ moves to ban permanently Trump.

The National Federation of Independent Businesses said Tuesday its gauge of small-business optimism plunged to a seven-month low in December as COVID-19 restrictions intensified. Nine of the index’s 10 components declined through the month and the association’s measure of general-business-condition outlook tumbled into net negative territory.

Read more: An ETF provider whose specialty funds have smashed the market breaks down how to capitalize on the red-hot SPAC craze – and shares 4 to watch in 2021

Bitcoin recovered slightly after plummeting from record highs. The world’s largest cryptocurrency traded at roughly $33,600 on Tuesday, about 1% higher from the prior 24 hours, after sliding as low as $30,305.30 Monday night.

Spot gold climbed as much as 1.1%, to $1,863.81 per ounce, before paring gains. The US dollar weakened slightly against a basket of currency peers and Treasury yields rose.

Oil prices gained amid the US dollar’s decline. West Texas Intermediate crude rose as much as 1.9%, to $53.26 per barrel. Brent crude, oil’s international standard, climbed 1.9%, to $56.73 per barrel, at intraday highs.

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

The CIO of a $500 million crypto asset manager breaks down 5 ways of valuing bitcoin and deciding whether to own it after the digital asset breached $40,000 for the first time

US small-business optimism tumbles to 7-month low as COVID-19 restrictions curb activity

Here’s why the approval of a US bitcoin ETF would send the cryptocurrency tumbling in the near term, according to JPMorgan

Read the original article on Business Insider

Dow, S&P 500 add to records as weak jobs report boosts stimulus expectations

NYSE Trader Blur
  • US equities gained on Friday morning as the weak jobs report spurred investors hopes for a larger fiscal stimulus package to boost the economy.
  • American businesses shed 140,000 nonfarm payrolls last month, the Bureau of Labor Statistics said Friday. The reading is weaker than consensus economist estimates that foresaw 50,000 job additions, according to Bloomberg data. 
  • “In the face of endless amounts of readily available fiscal and monetary stimulus, the stock market has so far refused to pay attention to the economic data points that matter, like the weak jobs numbers,” James McDonald, Hercules Investments CEO said.
  • Watch major indexes update live here.

US equities gained on Friday morning as the weak jobs report prompted investors to hope for a larger fiscal stimulus package to boost the economy.

The US economy saw a surprise decline in payrolls in December as stricter COVID-19 lockdown measures extended the nation’s unemployment crisis into the new year. American businesses shed 140,000 nonfarm payrolls last month, the Bureau of Labor Statistics said Friday. The reading is weaker than consensus economist estimates that foresaw 50,000 job additions, according to Bloomberg data. 

The country’s unemployment rate stayed steady at 6.7% in December, slightly lower than the median economist estimate of 6.8%.

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

Read more: A growth-fund manager who’s beaten 96% of his peers over the past 5 years shares 6 stocks he sees ‘dominating their space’ for the next 5 to 10 years – including 2 he thinks could grow 100%

“In the face of endless amounts of readily available fiscal and monetary stimulus, the stock market has so far refused to pay attention to the economic data points that matter, like the weak jobs numbers,” James McDonald, Hercules Investments CEO said.

“We expect stock markets to continue to move higher and bond markets to continue to move lower (price down, yields up) as the likelihood of additional fiscal stimulus out of Washington is high and the continued support of the Federal Reserve is likely as well,” said Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance. 

Bitcoin hit a new all-time high of more than $41,000 on Friday morning, staging a rapid recovery despite falling to less than $37,000 overnight. The red-hot cryptocurrency has more than doubled in value over the last month, and risen over 30% in 2021 so far.  

Michael Burry, whose lucrative wager on the US housing bubble’s collapse in 2007 was captured in “The Big Short,” tweeted on Thursday that Tesla stock could implode in a similar fashion. 

“Well, my last Big Short got bigger and bigger and BIGGER too,” the Scion Asset Management boss said as Tesla jumped 8%. “Enjoy it while it lasts.”

Read more: BANK OF AMERICA: Buy these 8 US stocks poised to soar in the first quarter of 2021- and avoid these 2 at all costs

Meanwhile, billionaire investor Chamath Palihapitiya said Tesla’s stock could be worth three times its current valuation, which would make CEO Elon Musk the first trillionaire.

“Don’t sell a share” of Tesla, Palihapitiya told investors in a CNBC interview on Thursday

Gold dipped 2%, to $1,876.51, at intraday lows. The US dollar strengthened against most of its Group-of-10 currency peers, while 10-year Treasury yields climbed further above 1%, where they haven’t been since March.

Oil prices climbed amid a drop in US inventories. West Texas Intermediate crude rose as much as 2%, to $51.83 per barrel. Brent crude, oil’s international benchmark, gained 2.1%, to $55.50 per barrel, at intraday highs.

Read more: Deutsche Bank says buy these 14 beaten-down financial stocks poised for a bullish recovery from 2020’s ‘savage sell-off’ – including one that could rally 30%

Read the original article on Business Insider

US stocks close mixed as stimulus optimism clashes with new virus strain

nyse open floor traders mask.JPG
  • US stocks closed mixed on Tuesday after Congress passed a multitrillion-dollar spending bill that includes $900 billion in new stimulus.
  • The package, which also funds the government through September 30, includes $600 direct payments, $300 in additional federal unemployment benefits, and aid for small businesses. 
  • The fresh fiscal support locked horns with concerns around a new strain of COVID-19 in the UK. The variant’s emergence prompted several European nations to enact travel restrictions on UK visitors.
  • Oil futures fell as investors viewed the new virus strain as a risk to near-term energy demand. West Texas Intermediate crude fell as much as 2.4%, to $46.60 per barrel.
  • Watch major indexes update live here.

US equities closed mixed on Tuesday as investors weighed Monday’s stimulus vote against the emergence of a new coronavirus strain in the UK.

Congress approved the measure Monday night after months of negotiations over additional fiscal support. The bill, which includes $900 billion in new stimulus, funds the government through September 30. The package also includes $600 direct payments, $300 in additional federal unemployment benefits, and funds for the Paycheck Protection Program.

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

Read more: BANK OF AMERICA: Buy these 16 medtech stocks with strong fundamentals that are set to soar post-pandemic

The White House has indicated President Donald Trump will sign the bill. Economists have largely backed additional fiscal support, though the slowed pace of economic recovery and rising COVID-19 cases still present sizeable risks.

“The $900 billion fiscal aid package is months late and will likely fall short of what is needed to prevent a rough winter, but it’s better than nothing,” Gregory Daco, chief US economist at Oxford Economics, said, adding the measure will “partially buffer the current economic slowdown” while vaccines are distributed.

Enthusiasm toward the new fiscal support was somewhat offset by reports of a new COVID-19 variant in the UK. Several European countries implemented travel restrictions on UK visitors to slow its spread.

Fears were somewhat allayed later in the day after public health experts said Pfizer and Moderna’s COVID-19 vaccines are likely effective against the new strain. Still, the new restrictions and virus fears threaten to tamper down on already weakened economic activity.

Read more: Brooke de Boutray has beaten 99% of her peers over the last 5 years and runs a fund that is up 148% in 2020. She shared with us 4 stocks she’s most bullish on heading into 2021.

Economic indicators also flashed some warning signs. US consumer confidence unexpectedly fell to a four-month low this month as surging COVID-19 cases and stricter lockdown measures offset a slight improvement in Americans’ long-term outlooks, Conference Board said Tuesday. The organization’s sentiment gauge fell to 88.6 from 92.9, while economists expected a jump to 97.

The tech and real estate sectors outperformed, while communications-service and energy stocks lagged.

The Nasdaq composite index was lifted by Apple, which extended a late Monday climb following a Reuters report that the iPhone maker aims to produce electric cars by 2024. The news also boosted lidar-sensor producers, as Apple reportedly plans to partner with such firms for its vehicle systems.

Peloton soared after the company inked a deal to buy exercise-equipment company Precor for $420 million. Peloton plans to use Precor’s facilities to boost its manufacturing capacity and cut down on its order backlog.

Read more: A fund manager at JPMorgan’s $1.9 trillion asset management arm breaks down the 6 high-conviction bets he’s making to stand out from the crowd next year – and shares the 2 biggest risks on his radar

Bitcoin rose back above $23,000 after plunging the most in nearly a month on Monday. The cryptocurrency faced pressure after the US Treasury proposed rules that would require exchanges to collect information from users who transfer more than $10,000 to a crypto wallet.

Spot gold erased early gains and fell as much as 1%, to $1,858.97 per ounce, at intraday lows. The US dollar strengthened against all of its Group-of-10 peers and Treasury yields dipped.

Oil prices fell amid fears that the new COVID-19 strain will further cut into demand. West Texas Intermediate crude dropped as much as 2.4%, to $46.60 per barrel. Brent crude, oil’s international benchmark, declined 2.7%, to $49.56 per barrel, at intraday lows.

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

Brian Barish’s mutual fund crushed the market for 8 straight years and is in the top 2% after reinventing value investing for the digital age. Here’s how they pulled it off.

SoftBank aims to raise up to $525 million for its own blank-check company

Treasury Secretary Mnuchin expects direct stimulus checks to be released next week, says he ‘couldn’t be more pleased’ about deal

Read the original article on Business Insider

US stocks trade mixed as investors weigh $900 billion stimulus package against renewed virus fears

NYSE traders
  • US stocks traded mixed on Tuesday after Congress passed a multitrillion-dollar spending bill that includes $900 billion in new stimulus.
  • The package, which also funds the government through September 30, includes $600 direct payments, $300 in additional federal unemployment benefits, and aid for small businesses. 
  • Investors are weighing the bill’s passage against concerns around a new strain of the coronavirus in the UK.
  • Oil futures fell as investors viewed the new virus variant as a risk to near-term energy demand. West Texas Intermediate crude fell as much as 2.9%, to $46.60 per barrel.
  • Watch major indexes update live here.

US equities edged higher on Tuesday after Congress passed a $2.3 trillion bill that included government funding and a new tranche of stimulus measures.

Lawmakers approved the measure Monday night after months of negotiations over additional fiscal support. The bill, which includes $900 billion in new stimulus, funds the government through September 30. The package also includes $600 direct payments, $300 in additional federal unemployment benefits, and funds for the Paycheck Protection Program.

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

Read more: Brooke de Boutray has beaten 99% of her peers over the last 5 years and runs a fund that is up 148% in 2020. She shared with us 4 stocks she’s most bullish on heading into 2021.

The White House has indicated President Donald Trump will sign the bill. Economists have largely backed additional fiscal support, though the slowed pace of economic recovery and rising COVID-19 cases still present sizeable risks.

“The $900 billion fiscal aid package is months late and will likely fall short of what is needed to prevent a rough winter, but it’s better than nothing,” Gregory Daco, chief US economist at Oxford Economics, said, adding the measure will “partially buffer the current economic slowdown” while vaccines are distributed.

The mixed trading follows a mild decline across indexes on Monday. Stocks fell to start the week amid concerns around a new strain of the coronavirus emerging in the UK. Several European countries implemented travel restrictions on UK visitors.

Fears were somewhat allayed later in the day after public health experts said Pfizer and Moderna’s COVID-19 vaccines are likely effective against the new strain.

Read more: BANK OF AMERICA: Buy these 16 medtech stocks with strong fundamentals that are set to soar post-pandemic

The Nasdaq composite index was lifted by Apple, which extended a late Monday climb following a Reuters report that the iPhone maker aims to produce electric cars by 2024. The news also boosted lidar-sensor producers, as Apple reportedly plans to partner with such firms for its vehicle systems.

Peloton soared after the company inked a deal to buy exercise-equipment company Precor for $420 million. Peloton plans to use Precor’s facilities to boost its manufacturing capacity and cut down on its order backlog.

Bitcoin rose back above $23,000 after plunging the most in nearly a month on Monday. The cryptocurrency faced pressure after the US Treasury proposed rules that would require exchanges to collect information from users who transfer more than $10,000 to a crypto wallet.

Spot gold gained as much as 0.4%, to $1,884.33 per ounce, at intraday highs. The US dollar wavered against a basket of currency peers and Treasury yields dipped.

Oil prices fell amid fears that the new COVID-19 strain will further cut into demand. West Texas Intermediate crude dropped as much as 2.9%, to $46.60 per barrel. Brent crude, oil’s international benchmark, declined 2.7%, to $49.56 per barrel, at intraday lows.

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

Brian Barish’s mutual fund crushed the market for 8 straight years and is in the top 2% after reinventing value investing for the digital age. Here’s how they pulled it off.

SoftBank aims to raise up to $525 million for its own blank-check company

Treasury Secretary Mnuchin expects direct stimulus checks to be released next week, says he ‘couldn’t be more pleased’ about deal

Read the original article on Business Insider