Nasdaq 100 futures scale new peak ahead of jobless claims data

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Reuters 24 June, 2021 - 06:26am 61 views

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The S&P 500 opened higher by 15.13 points, or 0.36%, at 4,256.97, while the Nasdaq Composite rose 85.5 points, or 0.60%, to 14357.265 at the opening bell.

The Dow Jones Industrial Average rose 59.67 points, or 0.18%, at the open to 33,933.91.

Reporting by Medha Singh in Bengaluru; Editing by Maju Samuel

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Asian markets edge lower - MarketPulse

MarketPulse 24 June, 2021 - 09:19am

Despite some intra-day volatility, Wall Street finished the day mixed and almost unchanged. The S&P 500 lost 0.11%, while the Nasdaq rose by 0.13% and the Dow Jones fell by 0.21%. Despite the futures on all three indexes adding around 0.30% in Asia as progress was made on the US infrastructure package, Asia has, for the most part, drifted lower in sympathy with the overnight session.

Asian markets remain equally calm today after New York’s drifting. A US bi-partisan group appears to have reached a preliminary agreement on the US infrastructure package and will be presented to the US President today. Its scope and how it will be paid for will interest financial markets the most, although it has caused no ripples in Asia. The infrastructure programme progress seems to have halted the negativity if not wholly turned sentiment across the region. By and large, Asian markets that are more “tech-heavy,” are following the Nasdaq once again. Meanwhile, the more growth-orientated ones are mirroring the S&P 500 and Dow Jones.

The Nikkei 225 is unchanged, with the Kospi following the Nasdaq 0.40% higher. Mainland China’s Shanghai Composite and CSI 300 have drifted 0.15% lower, while Hong Kong is 0.10% higher. Singapore has reversed course and added 0.25%, with Taipei rising 0.20%. But Kuala Lumpur and Jakarta have fallen by 0.40%, Bangkok is down 0.60%, and Manila is down 0.15%. Australian markets are equally quiet, both the ASX 200 and All Ordinaries reversing slight early losses to be unchanged for the session.

That points to an equally nondescript opening for European equities this afternoon. It remains a day trader’s market this week, and intra-day swings will continue to shift on Fed speaker headlines. It would take a big miss lower by durable goods and PCE tonight to shift the dove needle materially – we will remain at the mercy of Fed-speak and a schizophrenic intra-day market.

Next week should see the return of more directional moves.

MarketPulse provides up-to-the-minute analysis on forex, commodities and indices from around the world.

Market Recap: Tuesday, June 22: Nasdaq has record close

Yahoo Finance 24 June, 2021 - 09:19am

S&P 500 tests record territory as stocks rise after economic data

MarketWatch 24 June, 2021 - 06:32am

Signs of progress by a bipartisan group of U.S. lawmakers on an infrastructure-spending proposal were also in focus.

On Wednesday, the Nasdaq rose 0.1% to eke out its second consecutive record close, its 16th of 2021, while the Dow edged down 71.34 points, or 0.2% and the S&P 500 fell 0.1%.

Data on first-time U.S. unemployment benefit applications disappointed. Initial claims fell 7,000 to 411,000 in the week ended June 19. Economists had looked for a fall to 380,000.

“The labor market remains lumpy and uneven, so the only real takeaway is that removing fiscal and monetary support too early is the biggest risk to the recovery,” said Jamie Cox, managing partner for Harris Financial Group  

“Although this doesn’t solidify any ‘transitory’ argument, it does anchor markets to pay more attention to the labor market for cues on the future path of rates,” Cox said.

Members of a bipartisan group of U.S. lawmakers holding talks on a roughly $1 trillion infrastructure proposal said they had agreed to a framework for a package, with plans to meet with President Joe Biden on Thursday to finalize the deal which could ultimately mean further fiscal stimulus for the economy.

“An agreement in principle is possible today before Congress leaves town for the two-week July 4 break, but as long as the package sits in the summer sun, the more it will attract opposition,” said Greg Valliere, chief U.S. policy strategist at AGF Investments, in a note.

“It will take weeks to iron out all of the details, and then the suspense will rise — could this attract 60 votes in the Senate, avoiding a filibuster?” he wrote.

Stocks were buoyed earlier this week as Federal Reserve Chairman Jerome Powell emphasized on Tuesday that the central bank still expected to see inflation pressures to prove transitory. Analysts said some steam came out of the market in Wednesday’s session after Federal Reserve Bank of Atlanta President Raphael Bostic said he pulled forward “my projection for our first move to late 2022,” following a similar comment on interest rates last week from St. Louis Reserve President James Bullard.

In other U.S. economic data, May durable-goods orders climbed 2.3% in May though core capital goods orders slipped.

The advanced trade deficit in goods widened to $88.1 billion in May from $85.7 billion the previous month. Core capital goods orders declined 0.1% in May. And a revised estimate of first-quarter gross domestic product left the rate of growth unchanged at an annual rate of 6.4%.

The pace of growth in the U.S. economy in the first quarter remained unrevised at a 6.4% annualized rate after the latest revision, the Commerce Department said Thursday.

“Stock markets have even better prospects through year-end,” said Brad McMillan, Chief Investment Officer for Commonwealth Financial Network in a mid-year outlook. “The economy is likely to keep growing at a fast pace, and the government will continue to provide fiscal and monetary stimulus,” he said. “As such, corporate earnings are likely to keep growing—and to push markets higher.”

Several Fed officials are also slated to speak over the course of the day, including Atlanta Fed President Raphael Bostic, Philadelphia Fed President Patrick Harker, New York Fed President John Williams and St. Louis Fed President James Bullard.

White Square Capital's decision followed a review of its business model and was unrelated to trading in the videogame retailer, according to the Financial Times.

William Watts is MarketWatch’s senior markets writer. Based in New York, Watts writes about stocks, bonds, currencies and commodities, including oil. He also writes about global macro issues and trading strategies. Before moving to New York, he reported for MarketWatch from Frankfurt, London and Washington, D.C.

Stock Market News Live: Dow, Nasdaq and S&P 500 All Open Higher - WSJ.com

The Wall Street Journal 24 June, 2021 - 04:58am

Crude oil and gold prices are making muted moves, and bitcoin is inching higher. To find out what else is happening in markets, scroll down.

BuzzFeed also announced its plans to acquire Complex Networks, a digital publisher that specializes in streetwear, music and pop culture.

The Journal's Benjamin Mullin reported the deal and planned acquisition were imminent late Wednesday.

Like many other SPACs, 890 5th Avenue Partners is trading below its IPO price of $10 a share. That can make it challenging for SPACs to complete deals because investors can typically withdraw $10 per share plus a tiny bit of interest before the deal is finished.

A high rate of withdrawals can then cause the deal terms and valuation to be renegotiated, further muddling the monthslong process of finalizing the merger.

The move is part of a plan to consolidate with other players in digital media, as the company hopes scale will make it easier to compete for ad dollars with Google, Facebook and Amazon.

U.S. stocks climbed after fresh data showed a drop in jobless claims and a rise in orders for durable goods.

The S&P 500 added 0.5%. The Nasdaq Composite rose 0.6%, pointing to stronger gains for technology shares, and the Dow Jones Industrial Average ticked 0.5% higher. Read our full market wrap here.

The dollar has rallied about 2% this month, reversing most of the losses endured since the end of March. And hedge funds have built up a big bet against the greenback, according to analysts at SentimenTrader, a research firm.

That has left these speculative investors exposed to a "pain trade," which is one where the most investors get hurt by a move in an asset. The problem for hedge funds here is a bit like a short squeeze on a meme stock. As the dollar rises and their bets against it are exposed to losses, they will have to buy back the dollar to shrink their trades, pushing the dollar higher and causing more losses.

SentimenTrader has studied the history of heavy hedge-fund short bets against the dollar and found that on average when they are as negatively positioned as they are today, the dollar has often jumped higher. From a position like this, the annualized return for the dollar has been 2.6%.

Rite Aid Corp. shares plunged 13% premarket after it forecast a full-year adjusted loss amid pressure in the company's pharmacy-services business and on retail sales.

The Camp Hill, Pa.-based drug-store company said it expects full-fiscal-year revenue of $25.1 billion to $25.5 billion, and an adjusted loss of between 24 cents a share and 79 cents a share.

Analysts polled by FactSet were estimating full-year sales of $24.66 billion, and adjusted earnings of 64 cents a share.

Factors weighing on the forecast include a decrease in revenue for Elixir, Rite Aid's pharmacy-benefits-and-services segment, because of the loss of a large customer account and a reduction in Medicare Part D business. The retail business will face reimbursement-rate pressure as well, Rite Aid said.

Darden Restaurants Inc. shares gained 2% premarket after it said it turned a profit for the fiscal fourth quarter as same-restaurant sales, or those at restaurants open 16 months or longer, rose 90.4%, and the company added 30 net new restaurants during the period.

The Orlando-based restaurant chain, parent company of Olive Garden and LongHorn Steakhouse, on Thursday posted net income of $368.5 million, compared with a net loss of $480 million a year earlier. Earnings were $2.78 a share, compared with a loss of $3.86 a share.

Adjusted earnings were $2.03 a share. Analysts polled by FactSet had been expecting adjusted earnings of $1.79 a share.

U.S. stock futures climbed after fresh data showed a slight drop in jobless claims and a rise in orders for durable goods.

Futures tied to the S&P 500 added 0.5%, suggesting that the broad market index may hit a record after the opening bell. On Wednesday, the S&P 500 closed down 0.1%. Nasdaq-100 futures advanced 0.6%, pointing to stronger gains for technology shares.

Stocks are grinding higher this week, reflecting investors’ easing concerns about higher inflation and tighter monetary policy. Money managers are growing more assured that interest rates won’t rise for a while: that has sent technology stocks roaring higher in recent days and pushed the Nasdaq Composite Index to two consecutive all-time closing highs. Read our full market wrap.

Accenture PLC reported a rise in earnings and revenue in the third quarter. Its shares added 4.5% in premarket trading.

The company said revenue was $13.26 billion, up from $10.99 billion a year earlier. According to FactSet, analysts had been expecting $12.81 billion.

Net income attributable to the company was $1.55 billion, up from $1.23 billion. Earnings were $2.40 a share, up from $1.90 a share. They beat analysts' consensus.

New bookings increased 39% to $15.4 billion, the company said.

Bright Health Group will start trading on the NYSE today under the ticker BHG. The company sold shares in its initial public offering at $18 apiece.

Monte Rosa Therapeutics Inc. will join the Nasdaq Global Select Market as GLUE after selling shares at $19 each.

Confluent Inc. will make its debut as CFLT. The company's shares were sold in the IPO for $36 each.

Miromatrix Medical will make its debut on the Nasdaq as MIRO after selling shares at $9 each.

Grove Inc. will trade as GRVI after selling its stock in the IPO at $5 apiece.

Shares of Penn National Gaming jumped more than 3% premarket after the owner of racing facilities and video gaming terminals predicted a jump in revenue.

The Wyomissing, Pa. company said it expects revenue for the second quarter of $1.45 billion to $1.555 billion, compared with $305.5 million in the year-ago period.

It also said it plans to offer $400 million in eight-year senior unsecured notes in a private offering.

The Cboe Volatility Index, or VIX—also known as Wall Street's fear gauge—has fallen to a fresh pandemic-era low.

The VIX dropped to 15.59 on Thursday morning, beating a recent low of 15.65 on June 11.

The index, which is based on volatility expectations drawn from options on the S&P 500, tends to fall when stocks are grinding gently higher—and it tends to jump when stocks plummet. It hit an all-time record of 82.69 on March 16 last year when the Covid-19 panic was at its worst.

It is now at its lowest levels since February last year when it got as low as 13.7.

Dow Futures 175 Pts Higher; Initial Claims Data Due By Investing.com

Investing.com 24 June, 2021 - 12:00am

Investing.com - U.S. stocks are seen opening higher Thursday, rebounding from Wednesday’s dip as investors digest comments from Federal Reserve officials ahead of a number of economic data releases. 

At 7:05 AM ET (1205 GMT), the Dow Futures contract was up 175 points, or 0.5%, S&P 500 Futures traded 20 points, or 0.5%, higher, and Nasdaq 100 Futures climbed 80 points, or 0.6%.

The main equity indices closed largely lower Wednesday, with the blue-chip Dow Jones Industrial Average dropping 0.2%, the broad-based S&P 500 fell 0.1%, while the tech-heavy Nasdaq Composite outperformed, climbing 0.1% to another record high.

Yet, despite these losses, the equity averages have pushed higher this week, with comments from Fed chief Jerome Powell earlier in the week downplaying concerns about rising consumer prices helping to soothe investors after last week’s hawkish central bank meeting.

Credit Suisse (SIX:CSGN) analysts expect the global economy to grow by 5.9% this year, with the U.S. expanding by an even higher 6.9%, led by vaccine rollouts, fiscal stimulus and a broadening services recovery.

“We are looking for equities to be the asset class that is going to outperform over the next six months to a year,” said Credit Suisse analyst Ray Farris, on CNBC. “As long as earnings continue to trend higher, history suggests that equities will grind their way up.

There are more Fed speakers due to explain their thinking later Thursday, including John Williams, the president of the Federal Bank of New York, who stated Monday that it was too early for the central bank to begin reining in its asset purchases..

The earnings slate includes results from the likes of Darden Restaurants (NYSE:DRI), FedEx (NYSE:FDX) and Nike (NYSE:NKE), while the banking sector will also be in the spotlight ahead of the release of the latest Fed stress tests.

The highlight of the economic data releases will be the weekly initial jobless claims release, seen falling to 380,000 for the week ending June 19, dropping again after the surprise rise to 412,000 for the week before. 

Additionally, the final release of the first quarter GDP is expected to confirm that the U.S. economy grew by 6.4% annualized in the first three months of the year, while durable goods orders should climb 2.8% in May, rebounding after a 1.3% fall the previous month.

Crude oil prices edged lower Thursday, handing back some of the recent strong gains after U.S. crude stockpiles fell for the fifth consecutive week, the longest run since January 2021.

By 7:05 AM ET, U.S. crude was down 0.3% at $72.84 a barrel, after climbing late Wednesday as high as $74.25 per barrel, a peak not seen since Oct. 18, while Brent was down 0.3% at $74.94, just off Wednesday’s $76 high, also a 2018 peak.

The Energy Information Administration on Wednesday recorded a fall of 7.6 million barrels for the week ended June 18, indicative of a tightening market.

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Investing.com – Saudi Arabia stocks were higher after the close on Thursday, as gains in the Industrial Investment, Cement and Agriculture & Food sectors led shares higher. At the...

By Stephen Nellis (Reuters) - Apple Inc (NASDAQ:AAPL) is expanding retail operations as the United States emerges from the pandemic, betting that a combination of strategies...

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S&P 500 rises to retake record at the open, wiping out last week's Fed swoon

CNBC 23 June, 2021 - 05:03pm

The S&P 500 climbed on Thursday, surpassing its record high set a week ago as the market fully recovered losses triggered by the Federal Reserve's surprise policy pivot.

The broad equity benchmark rose 0.5% to hit an all-time high, retaking its previous record on June 14. The Dow Jones Industrial Average added 260 points, or 0.8%, sitting less than 3% from its all-time high. The Nasdaq Composite jumped 0.6% to reach another record.

A broad group of stocks gained to push the benchmarks to new highs. Communication services, consumer discretionary, health care and tech were the best-performing sectors. Tesla added more than 2%, while GM and Caterpillar each gained about 1%.

The blue-chip Dow suffered its worst week since October with a 3.5% loss last week after the Fed heightened inflation expectations and forecast rate hikes as soon as 2023. Economic comeback plays led the market losses as investors bet on slower growth amid the central bank's hawkish sentiment. The S&P 500 fell 1.9% last week.

Comments from Fed Chair Jerome Powell during a Congressional testimony Tuesday reiterated that inflation pressures should be temporary, which seemed to soothe market jitters.

"With the market hitting new highs this week, investors could be coming to terms with the fact that the Fed will inevitably raise rates," said Mike Loewengart, managing director of investment strategy at E-Trade.

Data out Thursday showed jobless claims totaled 411,000 for the week ended June 19, higher than an estimate of 380,000 from economists polled by Dow Jones.

"The jobs read is another proof point that the economy is coming back to life, albeit maybe in a slightly bumpier fashion than some anticipated at this stage," Loewengart said.

Bank shares gained ahead of the Fed's annual bank stress test results, which are scheduled for release after the bell on Thursday. The test examines how banks fare during various hypothetical economic downturns. Banks were forced to freeze dividends and stop buybacks during the pandemic. These results should give them the greenlight to eventually raise payouts. Goldman Sachs shares rose about 1%.

Traders are also monitoring infrastructure package negotiations. A bipartisan group of Senators that have made progress on a plan will meet President Joe Biden at the White House Thursday. The lawmakers have worked for weeks to craft a roughly $1 trillion package that could get through Congress with support from both parties. Republicans have fought the president's proposal to hike the corporate tax rate to 28% from 21%.

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Tesla lifts Nasdaq to record-high close, S&P 500 dips

Reuters 23 June, 2021 - 03:24pm

Gains in Nvidia Corp (NVDA.O) and Facebook Inc (FB.O) extended a recent rebound in top-shelf growth stocks that fell out of favor in recent months as investors focused on companies expected to do well as the economy recovers from the pandemic.

Data firm IHS Markit said its flash U.S. manufacturing Purchasing Managers' Index rose to a reading of 62.6 this month, beating estimates of 61.5, but manufacturers are still struggling to secure raw materials and qualified workers, substantially raising prices. read more

The "high level of today's surveys will provide some confirmation for the Fed that the time to begin taking its foot off the accelerator is not far away," said Jai Malhi, global market strategist at J.P. Morgan Asset Management.

On Tuesday, Fed Chair Jerome Powell reaffirmed the central bank's intent not to raise interest rates too quickly, based only on the fear of coming inflation. read more

Powell's comments follow the Fed's projection a week ago of an increase in interest rates as soon as 2023, sooner than anticipated. Since then, growth stocks, including major tech names like Tesla and Nvidia, have mostly rallied and outperformed value stocks, like banks and materials companies.

"People are plowing money into what has worked. People are basically momentum-chasing and they're using the last three years of performance to figure out what to chase," said Mike Zigmont, head of trading and research at Harvest Volatility Management in New York.

Eight of the 11 major S&P sector indexes fell, with utilities (.SPLRCU) down about 1% and leading the way lower, followed by a 0.6% dip in materials (.SPLRCM).

Tesla jumped 5.3% after the electric vehicle maker said it had opened a solar-powered charging station with on-site power storage in the Tibetan capital Lhasa, its first such facility in China. That trimmed the stock's loss in 2021 to about 7%. read more

Extending investors' recent preference for growth stocks, the S&P 500 growth index (.IGX) edged up 0.01%, while the value index (.IVX) dipped 0.24%.

The Dow Jones Industrial Average (.DJI) fell 0.21% to end at 33,874.24 points, while the S&P 500 (.SPX) lost 0.11% to 4,241.84.

The Nasdaq Composite (.IXIC) climbed 0.13% to 14,271.73.

The S&P 500 has gained about 13% in 2021, while the Nasdaq and Dow are up about 11%.

Nikola Corp (NKLA.O) rallied 4.3% after the electric and hydrogen vehicle maker said it is investing $50 million in Wabash Valley Resources LLC to produce clean hydrogen in the U.S. Midwest for its zero-emission trucks.

Among so-called meme stocks, software firm Alfi Inc (ALF.O) tumbled 26% after more than doubling in value in the prior session, while Torchlight Energy Resources Inc (TRCH.O) slumped 30%, tumbling for a second day after announcing an upsized stock offering. read more

Advancing issues outnumbered declining ones on the NYSE by a 1.14-to-1 ratio; on Nasdaq, a 1.42-to-1 ratio favored advancers.

The S&P 500 posted 33 new 52-week highs and no new lows; the Nasdaq Composite recorded 91 new highs and 28 new lows.

Volume on U.S. exchanges was 9.3 billion shares, compared with the 11.1 billion average over the last 20 trading days.

Our Standards: The Thomson Reuters Trust Principles.

Fewer Americans filed new claims for unemployment benefits last week as the labor market recovery from the COVID-19 pandemic gains traction amid a reopening economy, but a dearth of willing workers could hinder faster job growth in the near term.

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