Stock market news live updates: Stock futures drift lower after Fed minutes highlight taper talk

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Yahoo Finance 18 August, 2021 - 05:16pm 79 views

When are the Fed minutes released?

The minutes for each regularly scheduled meeting of the Committee ordinarily are made available three weeks after the day of the policy decision and subsequently are published in the Board's Annual Report. federalreserve.govMinutes of the Federal Open Market Committee, July 27-28, 2021

Contracts on the S&P 500 ticked lower. Earlier, both the S&P 500 and Dow dropped more than 1% to post a back-to-back session of gains. 

Shares of Robinhood (HOOD) dropped more than 8% after the trading platform delivered its first earnings report since going public, with the print pointing to a revenue slowdown in the current period due to seasonal weakness in third-quarter trading. Cisco Systems (CSCO), a Dow component, also saw shares drop after its sales and profit guidance disappointed against some lofty Wall Street expectations. 

Equity markets as a whole came under pressure on Wednesday on the back of the Federal Reserve's July meeting minutes. These suggested central bankers were moving forward with their debate over the timing and scope of the tapering of their crisis-era asset purchase program, with most participants expecting the U.S. economy to make enough of a recovery to meet the "substantial further progress" necessary to trigger a slowdown in purchases by later this year. 

"With a growing number of officials now openly discussing the possibility of tapering beginning soon on the back of July’s strong employment report, it looks more likely than not that the wind-down will begin later this year, rather than early next year as we had previously thought," Andrew Hunter, senior U.S. economist for Capital Economics, wrote in a note on Wednesday.

"Regardless, the minutes also made clear that an earlier taper does not necessarily mean that the Fed will bring forward plans to start raising interest rates, with many officials believing that the FOMC should 'clearly reaffirm the absence of any mechanical link between the timing of tapering and that of an eventual increase in … the federal funds rate," he added.

Some pundits suggested the Federal Reserve's escalating talk around tapering is at least partially by design.  

"The Fed is doing a masterful job of leading us down the taper exhaustion path, so when they actually do taper, we'll be so exhausted talking about it, it won't cause the volatility in the market," Andrew Slimmon, managing director at Morgan Stanley investment management told Yahoo Finance. "That's what I really think they're doing: They're going back and forth and back and forth. And at the end of the day, tapering just means they're buying fewer bonds than they used to, but they're still buying bonds."

Here's where markets were trading Wednesday evening: 

S&P 500 futures (ES=F): -3 points (-0.07%) at 4,391.50

Dow futures (YM=F): -24 points (-0.07%) to 35,863.00

Nasdaq futures (NQ=F): -1.5 points (-0.01%) to 14,847.75

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

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Robinhood's (HOOD) earnings call included a series of previously submitted shareholder questions ranging “Will Hood pay out a dividend in the future?” to “Is Robinhood getting a crypto wallet?"

Chief among the proposed changes is filling in the major Medicare coverage gaps by including dental, vision, and hearing benefits.

Stocks tumbled into the close amid Fed hints it'll start tapering bond buys this year. Nvidia and Robinhood led earnings late.

The U.S. Securities and Exchange Commission (SEC) said on Wednesday it has charged three former engineers at Netflix Inc with trading on nonpublic information around the company's subscriber growth that generated over $3 million in total profit. The SEC's complaint, filed in federal court in Seattle, charges the streaming service's ex-staffers with violating antifraud provisions and trying to evade detection by using encrypted messaging applications. It also found that the staffers exchanged the information with relatives and friends so as to receive cash kickbacks in advance of several consecutive Netflix quarterly earnings, the SEC said.

T-Mobile has confirmed that 47.8 million current and former or prospective customers had their info stolen as part of a cyberattack on the carrier's systems.

The current turmoil in Afghanistan resulted from the Biden administration's immense failure to execute the US exit, Eurasia Group founder and political scientist Ian Bremmer tells Yahoo Finance in a new interview.

The Biden administration has frozen the Afghanistan government's holdings in US banks, preventing the Taliban from accessing billions of dollars—including $1.25 in gold bullion in a New York bank vault.

Krispy Kreme will look to take a price hike in September amid inflation in certain key commodities.

Warren Buffett is famous for betting against Wall Street. So, when analysts and Buffett agree on S&P 500 stocks to own, you'll want to pay attention.

Wall Street's main indexes slid on Wednesday, with the S&P 500 falling over 1%, after the release of minutes from the Federal Reserve's policy meeting last month showed officials felt the employment benchmark for decreasing support for the economy "could be reached this year." Stocks accelerated their declines late in the session, pushing the S&P 500 down about 1.8% from its record closing high after its second straight daily drop. Most S&P 500 sectors ended lower, with energy falling 2.4% and healthcare off 1.5%.

Sens. Markey and Blumenthal accused the company of 'misleading advertising and marketing.'

For a married couple, their Social Security benefits can consist of two workers’ benefits or a worker’s benefit and a spousal benefit. For instance, if a worker had a $2,000-a-month benefit and the spouse had $1,000, upon the death of either spouse the survivor’s benefit would be $2,000 a month. What if the surviving spouse isn’t yet age 62, which is usually the earliest age at which you can get retirement benefits?

The designer takes Engadget behind his collaboration with Samsung.

Shares of Cisco Systems fell in late trading Wednesday after reporting July quarter results and fiscal year 2022 guidance that largely matched expectations. For the quarter, Cisco (ticker: CSCO) posted revenue of $13.12 billion, up 8% from a year ago and at the high end of the company’s forecast range of 6% to 8% growth. Non-GAAP profit were 84 cents a share, toward the high end of the company’s guidance range of 81 to 85 cents a share.

Palantir (NYSE: PLTR) is a divisive stock. The bulls believe the data mining firm will continue to expand across the government and commercial sectors, while the bears believe it's too dependent on government contracts, its commercial business faces too many competitors, and its stock is too expensive. Palantir's volatility reflects that battle.

Read full article at Yahoo Finance

Fed Meeting Minutes Lay Out Reasons for Reverse Repo Surge

The Wall Street Journal 18 August, 2021 - 04:03pm

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As part of a broader debate over whether the central bank should pare its $120 billion a month in bond buying stimulus, Fed officials also mulled recent developments regarding the reverse repo facility, according to the minutes released Wednesday.

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Dow Futures 60 Pts Lower; Lowe's, Target Quarterly Results Impress By Investing.com

Investing.com 18 August, 2021 - 12:00am

Investing.com - U.S. stocks are seen opening largely lower Wednesday, continuing the weakness of the previous session with the focus on more earnings from the retail sector and the minutes of the last Federal Reserve meeting.

At 7 AM ET (1100 GMT), the Dow Futures contract was down 60 points, or 0.2%, S&P 500 Futures traded marginally lower, while Nasdaq 100 Futures climbed 20 points, or 0.1%.

The major indices closed sharply lower Tuesday, with the blue-chip Dow Jones Industrial Average dropping over 280 points, or 0.8%, its first down day in five. The broad-based S&P 500 also fell 0.7%, its worst day since July 19, while the tech-heavy Nasdaq Composite dropped 0.9%.

Weighing heavily on the market was the sharp drop in July retail sales, which fell 1.1% compared with a revised 0.7% gain in June. Weaker quarterly results from the home improvement chain Home Depot (NYSE:HD) didn’t help, although better-than-expected numbers from retailing giant Walmart (NYSE:WMT) provided some solace.

Retail earnings week continues on Wednesday, with Lowe’s (NYSE:LOW), a rival to Home Depot in the home improvement retail market, forecasting full-year sales above estimates after its same-store sales fell 1.6% in the second quarter, compared with expectations of a 2.2% drop.

Discount retailer Target (NYSE:TGT) also raised its forecast for the year, after topping expectations with its second-quarter sales, which like Walmart's were boosted by strong back-to-school spending.

Earnings from Cisco Systems (NASDAQ:CSCO) and Nvidia (NASDAQ:NVDA) are due after the close, while trading app Robinhood (NASDAQ:HOOD) releases its first earnings report as a public entity.

Also of interest will be the release of minutes from the July Federal Reserve meeting, at 2 PM ET (1600 GMT), with investors looking for clues as to when the central bank will end its pandemic-era emergency programs.

As far as economic data is concerned, the housing market will be in focus, with housing starts and building permit data for July due at 10 AM ET.

Elsewhere, oil prices traded higher Wednesday, attempting to rebound after four days of declines, on news Iran has moved closer to producing weapons-grade uranium, likely derailing any move to lift sanctions on its oil exports.

Investors will keep a wary eye on the latest crude oil supply data from the U.S. Energy Information Administration, due later in the day, after the American Petroleum Institute, an industry body, reported a draw of just over 1 million barrels for the week ending Aug. 13. 

By 7 AM ET, U.S. crude futures traded 1% higher at $66.98 a barrel, while the Brent contract rose 1.1% to $69.81.

Additionally, gold futures fell 0.1% to $1,787.10/oz, while EUR/USD traded 0.1% higher at 1.1723.

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Dow Futures 60 Pts Lower; Lowe's, Target Quarterly Results Impress By Investing.com

Reuters 18 August, 2021 - 12:00am

Investing.com - U.S. stocks are seen opening largely lower Wednesday, continuing the weakness of the previous session with the focus on more earnings from the retail sector and the minutes of the last Federal Reserve meeting.

At 7 AM ET (1100 GMT), the Dow Futures contract was down 60 points, or 0.2%, S&P 500 Futures traded marginally lower, while Nasdaq 100 Futures climbed 20 points, or 0.1%.

The major indices closed sharply lower Tuesday, with the blue-chip Dow Jones Industrial Average dropping over 280 points, or 0.8%, its first down day in five. The broad-based S&P 500 also fell 0.7%, its worst day since July 19, while the tech-heavy Nasdaq Composite dropped 0.9%.

Weighing heavily on the market was the sharp drop in July retail sales, which fell 1.1% compared with a revised 0.7% gain in June. Weaker quarterly results from the home improvement chain Home Depot (NYSE:HD) didn’t help, although better-than-expected numbers from retailing giant Walmart (NYSE:WMT) provided some solace.

Retail earnings week continues on Wednesday, with Lowe’s (NYSE:LOW), a rival to Home Depot in the home improvement retail market, forecasting full-year sales above estimates after its same-store sales fell 1.6% in the second quarter, compared with expectations of a 2.2% drop.

Discount retailer Target (NYSE:TGT) also raised its forecast for the year, after topping expectations with its second-quarter sales, which like Walmart's were boosted by strong back-to-school spending.

Earnings from Cisco Systems (NASDAQ:CSCO) and Nvidia (NASDAQ:NVDA) are due after the close, while trading app Robinhood (NASDAQ:HOOD) releases its first earnings report as a public entity.

Also of interest will be the release of minutes from the July Federal Reserve meeting, at 2 PM ET (1600 GMT), with investors looking for clues as to when the central bank will end its pandemic-era emergency programs.

As far as economic data is concerned, the housing market will be in focus, with housing starts and building permit data for July due at 10 AM ET.

Elsewhere, oil prices traded higher Wednesday, attempting to rebound after four days of declines, on news Iran has moved closer to producing weapons-grade uranium, likely derailing any move to lift sanctions on its oil exports.

Investors will keep a wary eye on the latest crude oil supply data from the U.S. Energy Information Administration, due later in the day, after the American Petroleum Institute, an industry body, reported a draw of just over 1 million barrels for the week ending Aug. 13. 

By 7 AM ET, U.S. crude futures traded 1% higher at $66.98 a barrel, while the Brent contract rose 1.1% to $69.81.

Additionally, gold futures fell 0.1% to $1,787.10/oz, while EUR/USD traded 0.1% higher at 1.1723.

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By David Shepardson WASHINGTON (Reuters) -The U.S. Transportation Department on Wednesday said it will limit some flights from Chinese carriers to 40% passenger capacity for four...

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