U.S. Stocks Waver Amid Energy, Inflation Concerns

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The Wall Street Journal 12 October, 2021 - 11:42am 28 views

Stock futures inch higher as the Dow tries to avoid a third-straight losing day

CNBC 12 October, 2021 - 10:00am

Stock futures inched higher Tuesday as the market attempted to buck its recent funk driven by concerns about the economy and inflation.

Futures on the Dow Jones Industrial Average added 55 points, or 0.2%. S&P 500 futures gained 0.2%. Nasdaq 100 futures rose 0.4%.

Tech stocks such as Tesla, Alphabet, Netflix, Nvidia and AMD were slightly higher in premarket trading.

Shares of MGM Resorts rose in early morning trading after Credit Suisse upgraded the casino stock to outperform.

The International Monetary Fund on Tuesday cut its global growth forecast, citing supply chain challenges and persistent Covid spread.

"We're seeing major supply disruptions around the world that are also feeding inflationary pressures, which are quite high and financial risk taking also is increasing, which poses an additional risk to the outlook," IMF economist Gita Gopinath said in a press release.

The IMF said central banks like the Federal Reserve should be prepared to tighten monetary policy if inflation runs too hot.

Investors will monitor the latest employment data on Tuesday as the Labor Department releases its Job Openings and Labor Turnover Survey. Economists polled by Dow Jones expect 10.9 million job openings in August, unchanged from the total in July. Stocks fell on Friday after a disappointing jobs report.

The market suffered losses to start the week with the blue-chip Dow shedding 250 points. The S&P 500 fell 0.7% Monday with nine of the 11 sectors registering losses, while the tech-heavy Nasdaq Composite dipped 0.6%. It was the second negative session in a row for the Dow, S&P 500 and the Nasdaq.

"There are a lot of headwinds out there as we embark on corporate earnings, and traders will be looking for any and all indications of guidance — especially as the threat of slower growth looms large," said Chris Larkin, managing director of trading at E-Trade Financial. "As new data emerges and traders gain some potential insight into growth prospects, it may be wise to prepare for more bumps in the road."

JPMorgan Chase and other big banks are about to kick off the third-quarter earnings season later this week. Earnings growth is expected to grow about 30% year over year this quarter following a 96.3% expansion in the second quarter, according to Refinitiv.

"Expectations for third quarter earnings have been coming down in recent weeks and that should create some room for upside surprises, which is good for overall market sentiment," said Rod von Lipsey, managing director at UBS Private Wealth Management.

The stock market went through a bumpy ride in September, with the S&P 500 falling 4.8% for its worst month since March 2020 and breaking a seven-month winning streak. The benchmark has recovered somewhat in October, up about 1.3% for the month.

But the rebound has stalled out a bit in recent days. Wall Street major strategists are seeing muted returns for the rest of 2021 as the average year-end S&P 500 target stands at 4,433, less than 2% from Monday's close, according to the CNBC Market Strategist Survey.

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Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

Stocks wobble ahead of corporate earnings, inflation data

Index-Journal 12 October, 2021 - 10:00am

Clear skies. Low 58F. Winds light and variable.

The S&P 500 fell 0.1% as of 10:14 a.m. Eastern. The Dow Jones Industrial Average fell 44 points, or 0.1%, to 34,453 and the Nasdaq fell 0.1%.

A mix of retailers and other companies that rely on direct consumer spending gained ground. Nike rose 1.3% and Lowe's rose 0.8%. Real estate and energy companies also rose, but those gains were offset by several big technology and communications stocks falling. Facebook fell 2% and Google's parent company Alphabet fell 1.3%.

U.S. crude oil prices rose 0.7% and were holding around $81 a barrel. The yield on the 10-year Treasury fell to 1.59% from 1.60% late Friday. The bond market was closed on Monday for Columbus Day.

European markets were mostly lower and Asian markets also closed mostly lower.

The broader market has been choppy for weeks. Investors are trying to figure out how the economy will continue its recovery with COVID-19 remaining a threat and rising inflation potentially crimping consumer spending and corporate finances. The latest round of earnings reports will give Wall Street a clearer picture of how companies fared in the most recent quarter amid a surge in COVID-19 cases. It will also shed some light on how they expect to perform through the rest of the year.

JPMorgan Chase will kick off earnings for banks on Wednesday. Bank of America, Wells Fargo and Citigroup will follow with their latest quarterly results on Thursday.

Investors will also be closely watching the latest updates on inflation from the Labor Department. It will release its Consumer Price Index for September on Wednesday, which is a gauge of how inflation is pressuring costs for consumers. Additional information on inflation pressures for businesses will be released on Thursday when the Labor Department releases its Producer Price Index.

A wide range of industries are feeling the pinch from rising inflation with higher costs for shipping and raw materials. Many companies have warned that their financial results could suffer because of the supply chain problems.

The supply chain crunch has also raised prices on many goods for consumers, which could hurt consumer spending and further stunt the economic recovery. Investors will get an update on consumer spending when the Commerce Department releases its retail sales report for September on Friday.

Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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S&P 500 Slides Into Close as Big Tech, Energy Give Up Gains

Yahoo Finance 11 October, 2021 - 11:34am

Investing.com – The S&P 500 fell Monday, as big tech and energy gave up gains amid cautious sentiment on Wall Street ahead of a busy week of market-moving events including the start of quarterly earnings season.

The S&P 500 fell 0.7%, the Dow Jones Industrial Average slipped 0.72%, or 250 points, the Nasdaq Composite was down 0.64%.

Big tech gave up gains later into the close, adding pressure on the broader market.

Google-parent Alphabet (NASDAQ:GOOGL), Apple (NASDAQ:AAPL), Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), and Microsoft (NASDAQ:MSFT) ended the day in the red.

Energy slipped even as oil prices topped $81 a barrel on bets that tighter supplies will continue through year-end at a time when demand remains elevated.

"In the view of the current robust demand, which is likely to be additionally boosted by the switch from gas to oil, plus the restrictive OPEC+ production policy, the oil market will remain tight until year’s end," Commerzbank (DE:CBKG) said in a note.

Utilities, commonly used as a bond proxy given the sector's steady dividends, were down more than 1% as investors continue to expect U.S. Treasury yields will continue to rise, souring sentiment on the sector.

Nextera Energy (NYSE:NEE), Alliant Energy Corp (NASDAQ:LNT), and DTE Energy (NYSE:DTE) energy fell more than 2%.

"The 10-year TSY note yield (TNX) does appear to be staging a minor breakout on the charts- and we believe this is bullish for a retest of the March 2021 highs near 1.80%," Janney Montgomery Scott said in a note.

The bond market was closed Monday for Columbus Day.

Materials stocks were the best performing sector on the day, underpinned by a 3% jump in Freeport-McMoran Copper&Gold Inc (NYSE:FCX) as copper prices continued to climb.

In other news, Southwest Airlines (NYSE:LUV) fell 4% after canceling more than 2,000 flights over the weekend, citing adverse weather and labor shortages. The company hinted that it could reduce its schedule to offset bottlenecks.

"We’ve already made significant reductions from our previously published November and December schedules, and if we think we need to do more, we will," Southwest Airlines President Mike Van de Ven said in a recorded message to employees, according to CNBC.

The subdued action on Wall Street comes as investors await further catalysts for market direction including the start of earnings season and further clues on monetary policy from the Federal Reserve's September meeting minutes due later this week.

JPMorgan Chase (NYSE:JPM) will get earnings underway in earnest when it reports third-quarter earnings on Wednesday, followed by Bank of America (NYSE:BAC) and Citigroup (NYSE:C) on Thursday.

The S&P 500 has pulled back a bit during the course of the trading session on Monday but has turned around to show signs of strength yet again around the 50 day EMA.

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