Stocks – S&P Surges as Trade Tensions and Recession Fears Fade

Investing.com – Stocks surged for a third-straight day on optimism about a U.S.- China trade deal and fewer worries about a recession hitting any time …

Investing.com – Stocks surged for a third-straight day on optimism about a U.S.- China trade deal and fewer worries about a recession hitting any time soon.

With Monday’s rally, the major averages have recovered most of the losses suffered in last week’s wild gyrations.

The S&P 500 was up 1.2%, and the Dow Jones industrials rose nearly 1%. The Nasdaq Composite jumped 1.35% and moved above 8,000 for the first time in four sessions.

Chip stocks led technology shares higher after the Trump Administration extended its reprieve on penalties for doing business with Huawei, the Chinese telecommunications equipment company. The Philadelphia Semiconductor Index rose nearly 1.9%. Nvidia (NASDAQ:NVDA) and Micron Technology (NASDAQ:MU) were the leaders.

That was about the only real news on the China-U.S. trade fight, but it was good enough.

Twenty-eight of the 30 Dow stocks were higher, led by Cisco Systems (NASDAQ:CSCO) and chemical maker Dow Inc (NYSE:DOW). At their highs in the morning, the blue chips were up as many as 336 points.

The tech-dominated Nasdaq 100 index, up 115 points, or 1.52%, was led by Chinese internet retailer Baidu (NASDAQ:BIDU), Nvidia and Wynn Resorts (NASDAQ:WYNN), one of the biggest players in Macau.

In addition, oil prices moved higher on hopes that any kind of deal could boost oil demand. West Texas Intermediate crude was up $1.33 to $56.14 a barrel on Monday. Brent crude, the global benchmark, was up $1.10 to $59.74. WTI is still down more than 15% from its $66.30 peak in April.

The demand for stocks pulled interest rates higher, with the 10-Year Treasury yield rising 4.4% to 1.608%, its highest level since Aug. 13. The 2-Year Treasury yield rose to 1.549%.

Since Wednesday’s shocking selloff that saw the Dow fall about 800 points, the blue-chip index is up 2.6%. The S&P 500 has rebounded 2.92% and the Nasdaq Composite has risen 2.94%.

Volatility has dominated markets as the worries have intensified about the economic impact of the U.S.-China trade battle. It has affected business in both countries. Electronics companies have become especially vulnerable to the shifting political winds. U.S. farmers have been stressed because China has been their largest export market. While the two sides are starting to communicate, no deal is expected until next year at the earliest.

In the 14 trading days so far in August, the Dow has experienced nine days with gains or losses of at least 239 points. The S&P 500 has moved up or down 1% or more on eight occasions and the Nasdaq has seen eight days of 100-point gains or losses.

There is plenty of opportunity for more volatility over the next four weeks with earnings reports expected from Home Depot (NYSE:HD), Kohl’s (NYSE:KSS), Lowe’s (NYSE:LOW), Target (NYSE:TGT), Nordstrom (NYSE:JWN) and Dick’s Sporting Goods (NYSE:DKS).

There will also be minutes from the Federal Reserve’s July meeting due Wednesday and every word uttered at the Fed’s annual retreat in Jackson Hole. Wyo., will be scrutinized. All of this will lead up to the Fed’s September meeting when the central bank is expected to trim its key federal funds rate.

While bond markets have been signaling the potential of a recession in the next year or two, it’s not clear if consumers are paying much attention.

Lastly, watch to see if the major averages can hit new highs. So far, new highs in the last two years have been met by near-immediate selloffs.

Winners and Losers in the S&P 500

Estee Lauder (NYSE:EL), Nvidia and Wynn were among the top S&P 500 performers on Monday.

Alliance Data Systems (NYSE:ADS), which organizes concepts like brand-centric bank credit card programs, health insurer DaVita HealthCare Partners (NYSE:DVA) and troubled conglomerate General Electric (NYSE:GE) were among the worst-performing stocks.

Related Articles

U.S. Steel plans to lay off hundreds of workers in Michigan

Top U.S. CEOs say companies should put social responsibility above profit

Day Ahead: Top 3 Things to Watch

Related Posts:

  • No Related Posts

US STOCKS-Wall St rebounds on tech strength, eyes shift to earnings

Qualcomm slides on weak rev, profit forecast … Qualcomm Inc dropped 0.29% after the chipmaker’s quarterly revenue and profit forecasts missed Wall …

(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)

* Verizon rises as Q2 profit beats estimates

* Kellogg jumps on quarterly profit, sales beat

* Qualcomm slides on weak rev, profit forecast

* Indexes up: Dow 1.01%, S&P 500 0.99%, Nasdaq 1.50% (Updates to early afternoon)

By Shreyashi Sanyal and Karina Dsouza

Aug 1 (Reuters) – U.S. stocks rebounded on Thursday from a steep selloff in the prior session, boosted by technology shares, as investors shrugged off a cautious outlook from the Federal Reserve on interest rate cuts and focused on corporate earnings. The U.S. central bank reduced borrowing costs by a widely-expected quarter of a percentage point on Wednesday, but Fed Chairman Jerome Powell signaled a series of further cuts was unlikely, leading to a sharp selloff on the S&P 500 and Dow.

Despite that, all three major indexes posted their second straight monthly gains in July, closing the book on a month in which the S&P 500 and the Nasdaq reached fresh record highs.

“As people thought about the cut overnight, it really wasn’t such a big change from what they expected. The Fed isn’t going to keep cutting if the economy shows signs of improvement, but they may cut ahead,” said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.

The two big issues for the markets have been the U.S.-China trade talks and the Fed rate cut, which are now momentarily behind us, Meckler said.

Earnings reports so far have been robust with 355 companies in the S&P 500 that have reported second-quarter earnings, 74.4% have beaten Street estimates for profit, according to Refinitiv data.

The S&P 500 technology sector, Wall Street’s best performer so far this year, rose 2.10%, recovering from a 1.5% drop in the previous session, helped by shares of Microsoft Corp and Apple Inc.

Verizon Communications Inc rose 1.09%, contributing to a 1.22% gain in the communication services sector, after the wireless carrier beat quarterly profit estimates.

The Dow Jones Industrial Average rose 271.77 points, or 1.01%, to 27,136.04 and the S&P 500 gained 29.57 points, or 0.99%, to 3,009.95. The Nasdaq Composite added 122.60 points, or 1.5%, to 8,298.02.

Kellogg Co jumped 8.18% after it beat analysts’ expectations for quarterly sales and profit, driven by higher demand for its snacks in North America.

Qualcomm Inc dropped 0.29% after the chipmaker’s quarterly revenue and profit forecasts missed Wall Street targets.

Among other decliners, the energy sector slid 0.78%, the most among the 11 major S&P sectors, as oil prices declined as rising U.S. output helped keep the market well supplied and on Fed commentary on further rate cuts.

Shares of oil major Exxon Mobil Corp dropped 0.63%, ahead of its earnings report on Friday.

Investors awaited the Labor Department’s nonfarm payrolls data to gauge the strength of the domestic labor market. The report is expected to show private payrolls added 164,000 jobs in July, according to a Reuters survey, after surging by 224,000 in June.

Advancing issues outnumbered decliners by a 1.68-to-1 ratio on the NYSE and by a 1.77-to-1 ratio on the Nasdaq.

The S&P index recorded 24 new 52-week highs and five new lows, while the Nasdaq recorded 68 new highs and 60 new lows. (Reporting by Shreyashi Sanyal and Karina Dsouza in Bengaluru; Editing by Arun Koyyur)

Related Posts:

  • No Related Posts

US STOCKS-Wall St bounces back on tech strength, focus shifts to earnings

Qualcomm slides on weak rev, profit forecast … Qualcomm Inc dropped 2.30% after the chipmaker’s quarterly revenue and profit forecasts missed Wall …

(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)

* Verizon rises as Q2 profit beats estimates

* Kellogg jumps on quarterly profit, sales beat

* Qualcomm slides on weak rev, profit forecast

* Indexes up: Dow 1.01%, S&P 500 0.95%, Nasdaq 1.47% (Updates prices, adds comments)

By Shreyashi Sanyal

Aug 1 (Reuters) – U.S. stocks bounced back on Thursday from a steep selloff in the prior session, boosted by technology shares as investors shrugged off a cautious outlook from the Federal Reserve on interest rate cuts and focused on corporate earnings. The U.S. central bank reduced borrowing costs by a widely-expected quarter of a percentage point on Wednesday, but Fed Chairman Jerome Powell signaled a series of further cuts was unlikely, leading to a sharp selloff on the S&P 500 and Dow.

Despite that, all three major indexes posted their second straight monthly gains in July, closing the book on a month in which the S&P 500 and the Nasdaq reached fresh record highs.

“As people thought about the cut overnight, it really wasn’t such a big change from what they expected. The Fed isn’t going to keep cutting if the economy shows signs of improvement, but they may cut ahead,” said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.

The two big issues for the markets have been the U.S.-China trade talks and the Fed rate cut, which are now momentarily behind us, so investors have now shifted their focus to individual earnings, Meckler said.

Earnings reports so far have been robust with 355 companies in the S&P 500 that have reported second-quarter earnings, 74.4% have beaten Street estimates for profit, according to Refinitiv data.

The S&P 500 technology sector, Wall Street’s best performer so far this year, rose 2%, recovering from a 1.5% drop in the previous session, helped by shares of Microsoft Corp and Apple Inc.

Verizon Communications Inc rose 1.14%, contributing to a 1.36% gain in the communication services sector, after the wireless carrier beat quarterly profit estimates.

The Dow Jones Industrial Average rose 270.23 points, or 1.01%, to 27,134.5 and the S&P 500 gained 28.29 points, or 0.95%, to 3,008.67.

The Nasdaq Composite added 119.97 points, or 1.47%, to 8,295.39.

Kellogg Co jumped 9.63% after the company beat analysts’ expectations for quarterly sales and profit, driven by higher demand for its snacks in North America.

Qualcomm Inc dropped 2.30% after the chipmaker’s quarterly revenue and profit forecasts missed Wall Street targets.

Among other decliners, the energy sector slid 0.96%, the most among the 11 major S&P sectors, as oil prices declined as rising U.S. output helped keep the market well supplied and on Fed commentary on further rate cuts.

Shares of oil major Exxon Mobil Corp dropped 0.54%, ahead of its earnings report on Friday.

Investors awaited the Labor Department’s nonfarm payrolls data to gauge the strength of the domestic labor market. The report is expected to show private payrolls added 164,000 jobs in July, according to a Reuters survey, after surging by 224,000 in June.

Advancing issues outnumbered decliners by a 1.69-to-1 ratio on the NYSE and by a 2.14-to-1 ratio on the Nasdaq.

The S&P index recorded 19 new 52-week highs and five new lows, while the Nasdaq recorded 59 new highs and 53 new lows. (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Arun Koyyur)

Related Posts:

  • No Related Posts

Wall Street higher on tech boost, focus shifts to earnings

Qualcomm Inc dropped 3.32% after the chipmaker’s quarterly revenue and profit forecast fell short of Wall Street targets. Among other decliners, the …

By Stephen Culp

NEW YORK (Reuters) – Wall Street fell again on Thursday, abruptly reversing early gains after U.S. President Donald Trump put concerns about the U.S.-China trade war back in the spotlight, tweeting that he would impose an additional 10% tariff on $300 billion in Chinese imports.

Having spent most of the session on track for their best day since June, all three major U.S. stock indices took sudden U-turns as investors quickly turned into sellers after the tweet.

The bond market rallied on Trump’s comment, prompting U.S. Treasury yields into their steepest drop in over a year. The benchmark 10-year yield fell to its lowest level since November 2016.

The CBOE Volatility Index <.VIX>, a gauge of investor anxiety, shot to its highest reading since June 4.

“The biggest issue for investors to realize is that this is systemic and is going to be an ongoing issue between the U.S. and China,” said Joseph Quinlan, head of chief investment office market strategy for Merrill and Bank of America Private Bank in New York.

“The markets don’t like uncertainty and this is a bolt from the blue in terms of uncertainty.”

The sell-off comes on the heels of the U.S. Federal Reserve’s first interest rate cut in a decade, and remarks from Fed chief Jerome Powell that tempered expectations for further cuts this year, cuts Trump has been vocal about supporting.

“It looks like the president is bullying the chairman of the Federal Reserve in order to wage his trade war,” said Michael O’Rourke, chief market strategist at Jonestrading in Greenwich, Connecticut. “The market should not appreciate that.”

Earlier in the session, Wall Street got a boost from a string of positive earnings from a wide range of companies, including General Motors Co <GM.N>, Kellogg Co <K.N>, Verizon Communications Inc <VZ.N> and Yum Brands Inc <YUM.N>, among others.

In economic news, the U.S. manufacturing sector expanded in July at its slowest pace in almost three years, according to the Institute for Supply Management’s purchasing manager index (PMI).

Investors now look to Friday’s release of the Labor Department’s closely-watched jobs report.

The Dow Jones Industrial Average <.DJI> fell 280.85 points, or 1.05%, to 26,583.42, the S&P 500 <.SPX> lost 26.82 points, or 0.90%, to 2,953.56 and the Nasdaq Composite <.IXIC> dropped 64.30 points, or 0.79%, to 8,111.12.

Of the 11 major sectors in the S&P 500, eight closed in negative territory, with financials <.SPSY>, energy <.SPNY> and trade-sensitive industrials <.SPLRCI> seeing the biggest percentage losses.

Second-quarter earnings season continues at full throttle, with 355 of S&P 500 companies having reported. Of those, 74.4% have bested Street estimates, according to Refinitiv data.

Analysts now see S&P 500 earnings growth of 2.5%, up from just 0.3% a month ago, per Refinitiv.

Pick-up trucks and SUVs drove General Motors’ second-quarter profit beat, but the automaker’s stock turned negative after the Trump tweet, ending the session down 0.5%.

Kellogg surged 9.3% as higher North American demand helped the packaged food company beat second-quarter estimates.

Shares of Yum Brands Inc jumped 3.9% after beating analyst profit and sales expectations on better-than-expected growth at all its restaurant chains, which include Taco Bell and Pizza Hut.

Declining issues outnumbered advancing ones on the NYSE by a 1.87-to-1 ratio; on Nasdaq, a 2.23-to-1 ratio favored decliners.

The S&P 500 posted 28 new 52-week highs and 11 new lows; the Nasdaq Composite recorded 76 new highs and 136 new lows.

Volume on U.S. exchanges was 9.89 billion shares, compared with the 6.48 billion average over the last 20 trading days.

(Reporting by Stephen Culp; additional reporting by Sinead Carew and Caroline Valetkevitch; Editing by Susan Thomas)

Related Posts:

  • No Related Posts

US STOCKS-Wall St higher on tech boost, focus shifts to earnings

Qualcomm slides on weak rev, profit forecast … Qualcomm Inc dropped 3.32% after the chipmaker’s quarterly revenue and profit forecast fell short of …

(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)

* Verizon rises as Q2 profit beats estimates

* Kellogg jumps on quarterly profit, sales beat

* Qualcomm slides on weak rev, profit forecast

* Indexes up: Dow 0.36%, S&P 500 0.47%, Nasdaq 0.88% (Updates to open)

By Shreyashi Sanyal

Aug 1 (Reuters) – U.S. stocks bounced back on Thursday, helped by technology shares as focus shifted to corporate earnings after a cautious message from the Federal Reserve on interest rates drove some of the biggest falls since May in the previous session. The U.S. central bank reduced borrowing costs by a widely-expected quarter of a percentage point on Wednesday, but Fed Chairman Jerome Powell signaled a series of further cuts was unlikely, leading to a sharp selloff on the S&P 500 and Dow.

Despite that, all three major indexes posted their second straight monthly gains in July, closing the book on a month in which the S&P 500 and the Nasdaq reached fresh record highs.

“It was always going to be a tough job for the Fed to be as dovish as stock markets hoped. The 25 bps cut was a non-event,” said Chris Beauchamp, chief market analyst at IG, in a note.

“With the Fed out of the way there is a chance that we can all get back to focusing on earnings and how earnings season continues to paint a broadly positive picture.”

Almost three weeks through earnings, reports so far have been strong. Of the 296 companies in the S&P 500 that have reported second-quarter earnings, 74.7% have beaten Street estimates for profit, according to Refinitiv data.

The S&P 500 technology sector, Wall Street’s best performer so far this year, rose 1.12% after a 1.5% drop in the previous session.

Verizon Communications Inc rose 1.41%, driving a 0.85% gain in the communication services sector, after the wireless carrier beat quarterly profit estimates as it added far more net new phone subscribers who pay a monthly bill than expected.

The Dow Jones Industrial Average rose 96.27 points, or 0.36%, to 26,960.54, the S&P 500 gained 14.11 points, or 0.47%, to 2,994.49.

The Nasdaq Composite added 71.57 points, or 0.88%, to 8,246.99.

Kellogg Co jumped 9.52% after the company beat analysts’ expectations for quarterly sales and profit, driven by higher demand for its snacks, including Pringles and Pop-Tarts, in North America.

But not all reports were upbeat.

Qualcomm Inc dropped 3.32% after the chipmaker’s quarterly revenue and profit forecast fell short of Wall Street targets.

Among other decliners, the energy sector slid 0.59%, the most among the 11 major S&P sectors, as oil prices declined on Fed commentary on further rate cuts and as rising U.S. output helped keep the market well supplied.

Shares of oil major Exxon Mobil Corp dropped 0.65%, while Chevron Corp dipped 0.04%. Both companies are due to report earnings on Friday.

Advancing issues outnumbered decliners by a 1.23-to-1 ratio on the NYSE and by a 1.94-to-1 ratio on the Nasdaq.

The S&P index recorded 13 new 52-week highs and five new lows, while the Nasdaq recorded 42 new highs and 44 new lows. (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Arun Koyyur)

Related Posts:

  • No Related Posts