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May 17, 2022

Asian Shares Advance Despite Losses on Wall Street | Business News

By ELAINE KURTENBACH, AP Organization Author

Shares superior in Asia on Tuesday immediately after a different wobbly working day on Wall Street extended a losing streak for markets.

Hong Kong advanced approximately 2.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and other regional benchmarks had been reasonably better. Oil price ranges slipped.

Signs of development in China’s exertion to provide outbreaks of coronavirus beneath management appeared to be outweighing problem around weaker than envisioned Chinese economic info for April.

Traders also are observing for reviews by Federal Reserve officers that might offer insight into the U.S. financial outlook and future plan moves.

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“Markets continue being in combat or flight mode even though rolling the dice on recession odds,” Stephen Innes of SPI Asset Administration stated in a report. He added that, “traders seem to be to be in the mood to remain bearish till verified otherwise. On the other hand, there is nevertheless a lingering chance- on tone despite horrific Chinese data.”

Hong Kong’s Hold Seng gained 2.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 20,409.12 although the Nikkei 225 in Tokyo edged .2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} increased, to 26,601.03. In Seoul, the Kospi rose .7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 2,614.53.

Australia’s S&P/ASX 200 additional .2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 7,108.30 even though the Shanghai Composite index also was .2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} higher, at 3,079.82.

Marketplaces are trying to gauge how companies and customers are dealing with better charges and no matter whether central banking institutions can help simplicity the challenge. On Wall Road, the big indexes have been slipping due to the fact early April.

On Monday the S&P 500 fell .4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 4,008.01. It can be coming off of a six-7 days dropping streak. The Dow Jones Industrial Typical eked out a obtain, growing .1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 32,223.42.

The tech-heavy Nasdaq fell 1.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 11,662.79.

Technology stocks ended up between the largest losers. Apple fell 1.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Large tech companies, with their dear values, tend to push the broader marketplace both of those up or down. The sector has been a specifically large excess weight as buyers get worried about superior inflation and rising fascination premiums.

Suppliers also had some of the largest losses. Amazon slipped 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and Starbucks fell 4.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Electricity shares and health and fitness treatment corporations obtained ground as oil rates surged. Chevron rose 3.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and Eli Lilly rose 2.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Spirit Airways rose 13.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} immediately after JetBlue said it would make a hostile give for the price range carrier just after Spirit rebuffed its before bids.

Defense contractor ManTech jumped 15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} just after financial commitment business Carlyle Team s support it will get the defense contractor.

The Federal Reserve is step by step pushing its benchmark quick-phrase fascination rate off its report lower close to zero, in which it expended most of the pandemic. It also explained it may possibly go on to increase premiums by double the standard sum at impending meetings. Traders are involved that the central bank could induce a recession if it raises costs too large or also rapidly.

Lingering source chain challenges carry on to feed inflation, and China’s recent COVID-19 lockdowns have raised fears that they might worsen. Russia’s war versus Ukraine has manufactured presently significant electrical power charges even a lot more risky, which could also draw out mounting inflation.

U.S. crude oil rates rose 3.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Monday and are up extra than 50{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the 12 months. Purely natural gas charges rose 3.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and have much more than doubled in 2022.

On Tuesday, U.S. benchmark crude oil drop 37 cents to $113.83 for every barrel in electronic buying and selling on the New York Mercantile Exchange. Brent crude, the pricing foundation for intercontinental buying and selling, shed 23 cents to $114.01 for every barrel.

The Commerce Section is thanks to release its retail revenue report for April later on Tuesday. Home Depot and Walmart will report their newest fiscal benefits. Target will report its success on Wednesday.

In forex investing, the greenback rose to 129.19 Japanese yen from 129.11 yen late Monday. The euro was at $1.0438, up from $1.0436.

May 13, 2022

Stock futures rise as indexes aim to pare weekly losses

U.S. stocks gained Friday, shaking off some losses from earlier this week after concerns over persistent inflation and the resilience of the U.S. economy stirred up further volatility in recent sessions.

The S&P 500 rose by more than 1.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} intraday on Friday while the Nasdaq jumped by nearly 3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The Dow added more than 350 points. The sharp move higher came after Federal Reserve Chair Jerome Powell reaffirmed in an interview with Marketplace public radio on Thursday that two more 50 basis point rate hikes were on the table for the next two Fed meetings, and that officials were not “actively considering” a more aggressive 75 basis point hike. His comments echoed what other Fed officials also said this week.

Just a day earlier, the S&P 500 had closed within striking distance of a bear market, typically defined as a close of at least 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from a recent record high. The index has declined by just over 18{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from its Jan. 3 record high through Thursday’s close, and it paced toward a weekly drop of 4.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} if levels hold through the end of Friday’s session.

The Dow Jones Industrial Average and Nasdaq Composite each also headed for weekly losses of 3.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 6.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, respectively, based on Thursday’s closing prices. Treasury yields have spiked and then pared gains back this week, with the benchmark 10-year Treasury yield hovering around 2.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Friday morning. Bitcoin prices recovered to trade above $30,000 after setting the lowest level since Dec. 2020, as a cratering in prices of Luna further reverberated across the broader cryptocurrency market.

The market gyrations this week coincided with two major inflation reports that came in hotter-than-expected. Thursday’s Producer Price Index showed an 11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} year-over-year rise in wholesale prices last month, with this rate moderating only slightly from March’s all-time high rate of 11.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. And the Consumer Price Index released earlier this week showed a still-elevated 8.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} annual increase in prices paid by consumers last month.

“Inflation has certainly become not only topical, but a real issue for the broader market, as the Fed has also increased its outlook for the number of [interest rate] hikes needed,” Sonali Pier, managing director and portfolio manager at Pimco, told Yahoo Finance Live on Thursday. “In terms of the effect of inflation, it’s really at this point, we’re going to see if the Fed raising rates, unwinding some of the balance sheet, can take off some of that inflation froth. Because it’s quite high, and it’s starting to impact companies — from their ability to push through from a pricing power perspective, as well as consumers, whether that’s at the gas pump or as a result of food increases and the like.”

Other strategists agreed that the Fed’s response to inflation — and how well the economy holds up as the Fed tightens financial conditions to address inflation — will be the key factor to watch going forward for the markets.

“We’re in an environment right now where inflation is high. The labor market is very tight. The Fed wants to bring inflation down. They want to sort of cool the overheating in the labor market, which means their bias is to tighten financial conditions and try and slow growth,” Jason Draho, UBS Head of Asset Allocation, said on Thursday. “In that environment, it’s not great for any sort of financial assets.”

“[Once] we get some sort of real break on inflation that people become much more comfortable that it’s moderating, and moderating [to] a sustainable level that the Fed could be more comfortable, and they don’t have to hike more aggressively … I think that’s the key catalyst,” Draho said. “Unfortunately, that might take a few more months before the data starts to clearly show inflation is definitely below its peak, and the Fed could achieve its target two years out.”

“So I think for the time being, it’s definitely a choppy market,” he added.

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10:15 a.m. ET: Consumer sentiment drops to lowest level since 2011: University of Michigan

Consumer sentiment fell to a more than decade low in early May, according to the University of Michigan, as concerns around inflation persisted.

The University of Michigan’s closely watched Surveys of Consumers index dropped to 59.1 in the preliminary May report, declining sharply from April’s reading of 65.2. The latest reading marked the lowest since 2011.

The sentiment declines “were broad based — for current economic conditions as well as consumer expectations, and visible across income, age, education, geography, and political affiliation—continuing the general downward trend in sentiment over the past year,” Joanne Hsu, director of the Surveys of Consumers, said in a press statement. “Consumers’ assessment of their current financial situation relative to a year ago is at its lowest reading since 2013, with 36{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of consumers attributing their negative assessment to inflation.”

Consumers’ inflation expectations remained elevated in May, with the survey showing one-year inflation expectations were unchanged at 5.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. However, some strategists suggested the drop in risk assets over the past several weeks played an even larger role in the drop in the headline index.

“I would argue that the drop was largely a function of the plunge in stock prices. We know U. Mich is more sensitive to markets,” Neil Dutta, head of economics at Renaissance Macro Research, wrote in an email Friday morning. “Inflation is an issue sure but the inflation expectations series were unchanged.”

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9:33 a.m. ET: Stocks open higher

Here were the main moves in markets as of 9:33 a.m. ET:

S&P 500 (^GSPC): +43.33 (+1.10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,973.41
Dow (^DJI): +241.55 (+0.76{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 31,971.85
Nasdaq (^IXIC): +189.64 (+1.67{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 11,560.61
Crude (CL=F): +$3.05 (+2.87{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $109.18 a barrel
Gold (GC=F): -$24.60 (-1.35{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,800.00 per ounce
10-year Treasury (^TNX): +9.8 bps to yield 2.9150{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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7:54 a.m. ET: Tesla shares jump in early trading after Musk says Twitter deal on pause

Shares of Tesla (TSLA) jumped by more than 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} ahead of the opening bell Friday morning after CEO Elon Musk said his $44 billion plan to purchase Twitter (TWTR) was temporarily paused, pending more details over how much of Twitter’s use base comprises bot accounts.

“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of users,” Musk said in a Twitter post early Friday. He linked to a Reuters story suggesting Twitter filings showed fake or spam accounts made up fewer than 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the company’s monetizable daily active users.

In announcing his deal to buy Twitter over the past month, Musk has suggested targeting bot accounts and authenticating users was one of his priorities for the company post-deal.

Twitter shares sank 11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in early trading to hover around $40 apiece.

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7:45 a.m. ET Friday: Stock futures jump after Powell reaffirms 75 basis point rate hikes not currently under discussion

Here’s where markets were trading ahead of the opening bell Friday morning:

S&P 500 futures (ES=F): +46 points (+1.17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,973.25
Dow futures (YM=F): +262.00 points (+0.83{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 31,914.00
Nasdaq futures (NQ=F): +206.75 points (+1.73{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 12,154.00
Crude (CL=F): +$1.79 (+1.69{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $107.92 a barrel
Gold (GC=F): -$7.90 (-0.43{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,816.70 per ounce
10-year Treasury (^TNX): +9.8 bps to yield 2.915{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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6:10 p.m. ET Thursday: Stocks open lower

Here’s where markets were trading Thursday evening:

S&P 500 futures (ES=F): -10 points (-0.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,917.25
Dow futures (YM=F): -73 points (-0.23{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 31,579.00
Nasdaq futures (NQ=F): -41 points (-0.34{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 11,906.25

NEW YORK, NEW YORK - MAY 12: Traders work on the floor of the New York Stock Exchange (NYSE) on May 12, 2022 in New York City. The Dow Jones Industrial Average fell in morning trading as investors continue to worry about inflation and other global issues. (Photo by Spencer Platt/Getty Images) — NEW YORK, NEW YORK – MAY 12: Traders work on the floor of the New York Stock Exchange (NYSE) on May 12, 2022 in New York City. The Dow Jones Industrial Average fell in morning trading as investors continue to worry about inflation and other global issues. (Photo by Spencer Platt/Getty Images)

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

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April 26, 2022

Stocks resume losses ahead of Big Tech earnings

U.S. stocks fell Tuesday after markets staged a rebound to end higher in the previous trading session. Investors are looking ahead to a batch of mega cap tech earnings in the coming days, with reports from Microsoft (MSFT) and Alphabet (GOOGL) due out after the bell.

The S&P 500 dipped 0.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} at the start of trading, while the Dow Jones Industrial Average shed 230 points after the index staged a 500-point recovery on Monday to close in the green. The tech-heavy Nasdaq Composite tumbled 1.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Investors are in the heart of earnings season, with the S&P 500’s most heavily-weighted components scheduled to report earnings results this week. Facebook parent company Meta (FB), Apple (AAPL), and Amazon (AMZN) are also set to report quarterly results through Thursday.

As of Friday, one-fifth of companies in the index have reported results for the first quarter so far, with 79{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} reflecting an earnings beat for the period – above the five-year average of 77{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, according to the latest available data from FactSet. The magnitude of the earnings beat, however, is below the five-year average: 8.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, compared to 8.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

“The lower earnings growth rate for Q1 2022 relative to recent quarters can be attributed to both a difficult comparison to unusually high earnings growth in Q1 2021 and continuing macroeconomic headwind,” John Butters, a FactSet senior earnings analyst, said in a note.

U.S. stocks paralleled movements in global equity markets on Monday, with major stock indexes in Europe and Asia largely falling on renewed concerns a COVID outbreak in China may spur another wave of lockdowns and further disrupt global supply chains.

Worries of an economic slowdown also weighed on bonds and oil, with the 10-year Treasury yield retreating back to 2.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and West Texas intermediate crude oil futures edging below $100 per barrel.

“I think the most interesting thing happening in China right now is not that the yuan’s moving and not that the economy’s slowing – it’s that everything that’s happening right now, we knew weeks ago,” China Beige Book CEO Leland Miller told Yahoo Finance Live. “We knew that the economy was slowing, we knew they were not going to stimulate in a big way, we knew that lockdowns were spreading from Shanghai to other big cities, we knew the Fed was hiking, we knew there’s a policy crackdown, so it is interesting that people are seeing today as a pivotal moment.”

Elsewhere in markets, shares of Twitter jumped 5.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} after the social media giant formally announced it agreed to be acquired by Tesla CEO Elon Musk for $54.20 per share, or $44 billion. Twitter shareholders are set to receive $54.20 in cash for each share held, representing a 38{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} premium over Twitter’s closing level on April 1.

“This is the best thing that’s ever happened to Twitter,” Hedge Fund Tips’ Thomas Hayes told Yahoo Finance Live. “Elon Musk is going to rehab the building and generate a lot of value for users.”

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9:30 a.m. ET: Stocks resume losses to extend April sell-off

Here’s where the main indexes were at the start of trading on Tuesday:

S&P 500 (^GSPC): -22.31 (-0.52{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,273.81
Dow (^DJI): -224.66 (-0.66{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 33,824.80
Nasdaq (^IXIC): +165.56 (+1.29{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,004.85
Crude (CL=F): +$1.65 (+1.67{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $100.19 a barrel
Gold (GC=F): +$10.90 (+0.57{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,906.90 per ounce
10-year Treasury (^TNX): -7.7 bps to yield 2.7490{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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9:23 a.m ET: Home prices jump nearly 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} during February

Home price growth in the U.S. accelerated during the month of February, but a slowdown may be underway.

Standard & Poor’s reprted Tuesday that its S&P CoreLogic Case-Shiller national home price index registered a 19.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} gain during the second month of the year, up from 19.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in January. The figure marks the third-highest reading since the index was developed in the 1980s.

The 20-City results were higher than analysts’ expectations of an 19.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} annual gain, according to Bloomberg consensus estimates.

The 10-City Composite annual increase came in at 18.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, up from 17.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in the previous month. The 20-City Composite posted a 20.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} year-over-year gain, up from 18.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in the previous month.

“The macroeconomic environment is evolving rapidly and may not support extraordinary home price growth for much longer,” said Craig J. Lazzara, managing director and global head of index investment strategy at S&P DJI, in a statement. “The post-COVID resumption of general economic activity has stoked inflation, and the Federal Reserve has begun to increase interest rates in response.”

“We may soon begin to see the impact of increasing mortgage rates on home prices,” he added.

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9:09 a.m ET: PepsiCo ups full-year revenue forecast on higher prices, soda demand

PepsiCo (PEP) reported higher than expected quarterly earnings of $1.29 per share, beating the $1.23 per share analysts had expected, according to Bloomberg consensus data.

The beverage and snacks maker also raised its full-revenue forecast, buoyed by higher prices and a rebound in demand for its sodas at theaters and restaurants. Pepsi now anticipates fiscal 2022 organic revenue to rise 8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, compared with its forecast of a 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} increase.

During the quarter, the company also reported taking a $241 million charge related to Russia-Ukraine crisis.

“Looking ahead, we will focus on controlling what we can, such as enhancing our focus on productivity and sharpening our revenue management capabilities, while also continuing to make the necessary long-term investments to fortify our businesses and win in the marketplace,” PepsiCo CEO Ramon Laguarta said in the earnings release.

Shares of Pepsi were little changed in pre-market trading.

Pepsi cans are seen at the shop in this illustration photo taken in Krakow, Poland, on March 18, 2022. (Photo by Jakub Porzycki/NurPhoto via Getty Images)

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7:10 a.m. ET: Futures slip after stocks recover from losses in previous session

Here were the main moves in futures trading ahead of Tuesday’s open:

S&P 500 futures (ES=F): -16.50 (-0.40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,276.25
Dow futures (YM=F): -130.00 (-0.38{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 33,835.00
Nasdaq futures (NQ=F): -62.50 (-0.46{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,473.25
Crude (CL=F): -$0.35 (-0.36{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $98.89
Gold (GC=F): +$12.70 (+0.67{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,908.70 per ounce
10-year Treasury (^TNX): 0.00 bps to yield 2.8260{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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6:15 p.m. ET Monday: Stock futures muted ahead of earnings reports mega cap earnings

Here’s were stock futures were in post-market trading Monday evening:

S&P 500 futures (ES=F): -1.75 (-0.04{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,291.00
Dow futures (YM=F): -10.00 (-0.03{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 33,955.00
Nasdaq futures (NQ=F): -19.50 (-0.14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,516.25
Crude (CL=F): -$0.10 (-0.00{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $98.66
Gold (GC=F): +$3.20 (+0.17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,899.20 per ounce
10-year Treasury (^TNX): -8 bps to yield 2.8260{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

Read the latest financial and business news from Yahoo Finance

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April 22, 2022

Stocks extend losses as investors weigh hawkish Powell remarks, more corporate earnings

U.S. stocks were mostly lower Friday as investors assessed more corporate earnings and hawkish comments from Federal Reserve Chair Jerome Powell that hinted a half-point rate hike was likely next month.

The S&P 500 dipped 0.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, on pace to round out a third straight week of losses, while the Dow Jones Industrial Average fell 170 points. The tech-heavy Nasdaq Composite climbed slightly, up 0.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Meanwhile, Treasury yields continued their march forward, with the 10-year U.S. benchmark yielding 2.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, the highest level since December 2018.

Speaking at a panel hosted by the International Monetary Fund Thursday, Powell said a 50-basis point rate increase was “on the table” for May when the U.S. central bank holds its next policy-setting meeting. The Fed chair also reiterated that policymakers were committed to “front-end loading” inflation-fighting efforts.

“We really are committed to using our tools to get 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} inflation back,” Powell said in remarks before European Central Bank President Christine Lagarde and other officials, referring to the Fed’s target for annual price increases.

“We’re definitely in the cards for a 50 basis point rate hike in the May meeting,” Capital2Market President Keith Bliss said on Yahoo Finance Live on Thursday (video above). “The market is pretty good at dictating, if not indicating, where this is going to go.”

With the headline Consumer Price Index at its highest level in four decades, the U.S. Federal Reserve has recently signaled aggressive monetary tightening is underway to rein in rising price levels despite warnings from experts that moving too quickly could result in an economic contraction.

“The big question is whether the earnings can really sustain this kind of a macro backdrop of slower growth and Fed policy,” Deutsche Bank Wealth Management Chief Investment Officer Deepak Puri said on Yahoo Finance Live earlier this week. “It seems certain companies can — historically that’s been the case. What’s different this time is really the trifecta, which is higher costs of capital, quantitative tightening, plus a lack of … a big fiscal stimulus.”

Despite worries from Wall Street over the next policy moves and the risks posed to traders, a readout of the Federal Reserve’s recently published Beige Book suggests Main Street sentiment remains positive overall.

Strategists at LPL Research said the Beige Book Barometer may provide a more accurate picture of the economic outlook than current consumer sentiment, which has been weak in the face of soaring inflation. Despite an economic slowdown in the first quarter, data out of Washington has come in better than consensus expectations in recent weeks.

“Looking at the Fed’s most recent Beige Book, local U.S. businesses remain resilient despite elevated uncertainty,” LPL Financial Asset Allocation Strategist Barry Gilbert said. “Inflation, COVID, and the conflict in Ukraine will keep uncertainty elevated in the near term, but if we can navigate these challenges we believe there are solid prospects of a pick-up in growth in the second half of the year.”

Elsewhere in markets, shares of American Express (AXP) fell 1.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} despite a beat on its quarterly earnings in results out Friday morning. Shares of Verizon (VZ), which also reported before the opening bell, tumbled 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} after the telecommunications giant said it lost 36,000 monthly phone subscribers during the first quarter.

Investors continued to watch Snap Inc. (SNAP) after the company projected a strong outlook for user growth on Thursday despite warning supply-chain disruptions and inflation could continue to hurt advertising demand. Shares of Snap were up about 0.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in early trading.

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10:03 a.m. ET: U.S. business activity decelerates in April

Business activity across the U.S. eased in April, with inflationary pressures putting a dent in service sector output as rising prices weighed on spending.

S&P Global’s Flash Composite Purchasing Managers’ Index, which serves as a measure of overall economic health, fell to a reading of 55.1 this month from 57.7 in March. Economists surveyed by Bloomberg expected a reading of 57.9. Any reading above 50 indicates growth in the private sector.

“Many businesses continue to report a tailwind of pent up demand from the pandemic, but companies are also facing mounting challenges from rising inflation and the cost of living squeeze, as well as persistent supply chain delays and labor constraints,” S&P Global chief business economist Chris Williamson said in a statement.

“These headwinds, plus increased concerns over the economic outlook and tightening monetary policy, meant business confidence about the outlook slipped sharply lower in April. However, with the overall pace of economic growth and hiring remaining relatively solid, for now the focus from a policy perspective is likely to remain firmly on the need to rein in the record high inflationary pressures signaled by the survey.”

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9:30 a.m. ET: Stocks extend losses after Powell rate comments spook investors

Here’s where the main benchmarks opened at the start of Friday’s trading session:

S&P 500 (^GSPC): -15.81 (-0.36{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,377.85
Dow (^DJI): -229.65 (-0.66{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,563.11
Nasdaq (^IXIC): +0.85 (+0.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,175.50
Crude (CL=F): -$2.01 (-1.94{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $101.78 a barrel
Gold (GC=F): -$13.10 (-0.67{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,935.10 per ounce
10-year Treasury (^TNX): +1.1 bps to yield 2.9280{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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7:00 a.m. ET: Futures edge lower as S&P 500 sets out for another losing week

Here were the main moves in futures trading ahead of the opening bell Friday:

S&P 500 futures (ES=F): -12.75 (-0.29{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,377.75
Dow futures (YM=F): -95.00 (-0.27{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,614.00
Nasdaq futures (NQ=F): -39.75 (-0.29{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,688.50
Crude (CL=F): -$1.48 (-1.43{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $102.31 a barrel
Gold (GC=F): -$12.10 (-0.62{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,936.10 per ounce
10-year Treasury (^TNX): 0.00 bps (0.00{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to yield 2.9170{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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6:53 p.m. ET Thursday: Stock futures muted after hawkish Powell remarks sent indexes tumbling

Here’s where stocks were trading ahead of the overnight session on Thursday:

S&P 500 futures (ES=F): -1.50 (-0.03{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,389
Dow futures (YM=F): -3.00 (-0.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,706
Nasdaq futures (NQ=F): -4.75 (-0.03{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,723.50
Crude (CL=F): -$0.03 (-0.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $103.76 a barrel
Gold (GC=F): +$4.60 (+0.24{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,952.80 per ounce
10-year Treasury (^TNX): +0.077 bps (+2.71{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to yield 2.9170{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., April 14, 2022. REUTERS/Brendan McDermid

—

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard, and LinkedIn

April 20, 2022

Netflix stock plunges after subscriber losses

After shares tanked before this yr due to the fact of problems above its subscriber development, the streaming leader claimed that it dropped subscribers when it documented 1st quarter earnings on Tuesday.

Netflix (NFLX) now has 221.6 million subscribers globally. It drop 200,000 subscribers in the to start with quarter of 2022, the corporation claimed on Tuesday, adding that it expects to eliminate one more two million in the next quarter. The company was anticipated to add 2.5 million subscribers in the very first 3 months of the 12 months.

Netflix’s inventory dropped 30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} when the market opened on Wednesday, immediately wiping additional than $45 billion off the benefit of the business.

Netflix’s 1st quarter profit was $1.6 billion, down from $1.7 billion in the 12 months-previously quarter. Earnings jumped practically 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, to $7.9 billion.

It can’t be overstated just how bad of a report this is for the king of streaming. The firm’s stock has fallen additional than 40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} yr to day, and coming into the earnings there was a lot of problem from investors with regards to its expansion. The corporation has not misplaced subscribers in extra than a 10 years.

What took place?

In its letter to traders, the firm reported that due to the fact it released streaming in 2007, the business has “operated underneath the company perception that online-shipped, on demand from customers leisure will supplant linear Television set,” But, it included, in the in the vicinity of phrase “we are not rising earnings as quick as we might like.”

Netflix said that the pandemic “clouded the photo by substantially escalating our advancement in 2020, top us to believe that most of our slowing expansion in 2021 was because of to the Covid pull ahead.”

But there are numerous diverse components behind its subscriber stagnation, which include levels of competition from traditional media providers that have gotten into the streaming market place in current several years, as properly as prevalent password sharing.

Streaming services take a hit as inflation forces Brits to choose

“In addition to our 222 million paying out households, we estimate that Netflix is currently being shared with more than 100 million added households, such as above 30 million in the [United States/Canada] region,” the enterprise said.

The firm also blamed “macro things” that are influencing numerous firms proper now, this sort of as “sluggish economic expansion, expanding inflation, geopolitical events these types of as Russia’s invasion of Ukraine, and some continued disruption from Covid are probable owning an influence as nicely.”

Netflix explained that pulling out of Russia price tag the company 700,000 subscribers.

The company’s lousy report is most likely to roil the streaming market place provided that so quite a few other companies have modified their small business procedures to compete with Netflix.

Disney (DIS), for instance — one particular of Netflix’s major rivals — was down around 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Tuesday evening.

What now?

Netflix informed buyers Tuesday that it options to switch the tide by performing what it can be normally accomplished: Improving the provider.

“Our prepare is to reaccelerate our viewing and revenue advancement by continuing to improve all areas of Netflix — in specific the top quality of our programming and suggestions, which is what our users benefit most,” the enterprise explained.

The enterprise included that it is really “doubling down on story progress and imaginative excellence” and that it launched the “double thumbs up” software that will allow for customers to “far better specific what they definitely adore compared to simply just like.”

Netflix also claimed it will focus a lot more on “how greatest to monetize sharing” in terms of passwords.

This might be the end of sharing Netflix passwords

“Sharing likely served gas our growth by obtaining additional persons employing and experiencing Netflix. And we’ve often tried using to make sharing within a member’s domestic straightforward, with attributes like profiles and many streams,” the corporation reported. “Whilst these have been incredibly well known, they’ve made confusion about when and how Netflix can be shared with other homes.”

The corporation stated previous month that about the last year, it’s been doing work on strategies to “enable customers who share outside their home to do so simply and securely, when also having to pay a little bit much more.”

“Although we is not going to be able to monetize all of it proper now, we believe that it’s a significant brief- to mid-time period opportunity,” it claimed.

A different put that could enable increase earnings and catch the attention of additional subscribers for the services is promotion.

Netflix CEO Reed Hastings has often been allergic to the notion of getting commercials on the system, but on Tuesday’s call with analysts he outlined that it could be a probability in the potential.

“Those who have adopted Netflix know that I have been against the complexity of promotion and a major supporter of the simplicity of membership. But as much as I am a lover of that, I am a greater enthusiast of consumer selection,” Hastings said on the publish-earnings phone. “And enabling people who like to have a reduced cost, and are advertising tolerant, get what they want can make a whole lot of sense.”

He additional that the business is searching at that now and making an attempt to figure it out “more than the subsequent calendar year or two.”

“Believe of us rather open up to offering even reduced selling prices with advertising and marketing,” Hastings stated.

Even with the extraordinary expansion slowdown that places its system into dilemma, Netflix remained defiant.

“This emphasis on ongoing improvement has served us nicely in excess of the past 25 several years,” Netflix stated. “It can be why we are now the biggest subscription streaming service in the earth on all essential metrics: compensated memberships, engagement, earnings and financial gain.”

Correction: An previously version of this post provided an incorrect reference to fourth quarter earnings and misstated gain and profits.

April 6, 2022

Fed must ‘inflict more losses’ on stock-market investors to tame inflation, says former central banker

So considerably for the Fed set.

“‘It’s really hard to know how a great deal the U.S. Federal Reserve will need to do to get inflation less than handle. But a single point is specified: To be helpful, it’ll have to inflict far more losses on inventory and bond investors than it has so much.’”

— Monthly bill Dudley, previous New York Fed president

That’s William Dudley, the former president of the potent New York Fed, arguing in a visitor column at Bloomberg that his previous colleagues will not get a deal with on inflation that’s functioning at all over a 40-year large until they make buyers put up with.

There are myriad uncertainties the Fed have to navigate, he acknowledged, such as the effect of easing offer-chain disruptions and a traditionally tight labor marketplace. But the consequences of the Fed’s tightening of monetary policy on monetary ailments — and the the influence that tightening will have on economic action — is a single of the major unknowns, Dudley wrote.

Compared with quite a few other economies, the U.S. doesn’t reply straight to modifications in shorter-phrase desire fees, Dudley mentioned, partly for the reason that most U.S. home prospective buyers have extensive-expression, preset-fee mortgages. But numerous U.S. homes, also in contrast to other countries, have a significant amount of money of their prosperity in equities, which helps make them delicate to money conditions.

Dudley’s simply call for the Fed to inflict losses on traders stands in contrast to the longstanding idea of a figurative Fed place, the concept that the central lender would halt monetary tightening or normally ride to the rescue in the celebration of major losses in monetary markets. Dudley, who ran the New York Fed from 2009 to 2018, was earlier main U.S. economist at Goldman Sachs and is now a senior investigation scholar at Princeton University’s Centre for Economic Policy Research.

Go through: Fed lays out a tentative program to shrink its balance sheet by $95 billion a month, probably as early as May possibly

Investors have talked of a figurative Fed put considering the fact that at least the October 1987 inventory-sector crash prompted the Alan Greenspan-led central bank to decreased fascination fees. An precise set option is a monetary by-product that provides the holder the proper but not the obligation to provide the fundamental asset at a set level, identified as the strike rate, serving as an insurance coverage from a market decrease.

Shares have missing floor in 2022, partly in response to the Fed’s signals that it is prepared to be aggressive in elevating curiosity fees and shrinking its harmony sheet to get inflation beneath regulate. But losses continue being modest, with the S&P 500
SPX,
-.97{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
fewer than 7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} away from its Jan. 3 history close as of Tuesday’s complete. The Dow Jones Industrial Typical
DJIA,
-.42{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
is down 5.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the 12 months to day, while the Nasdaq Composite
COMP,
-2.22{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996},
built up of a lot more fee-sensitive tech and progress shares, has fallen far more than 11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

The pain has been much more powerful in the bond market. Treasury yields, which shift the reverse way of rates, have soared, albeit from traditionally lower concentrations. Initial-quarter losses in the bond marketplace ended up the worst in a quarter century.

Continue to, the 10-calendar year Treasury generate
TMUBMUSD10Y,
2.598{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
previously mentioned 2.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} stays up all-around just .75 proportion position from a 12 months ago and remains effectively under the inflation charge, Dudley stated. That is due to the fact traders expect bigger short-term costs to undermine financial expansion and drive the Fed to reverse program in 2024 and 2025, he mentioned — “but these quite expectations are avoiding the tightening of economical ailments that would make these an final result far more likely.”

Have to have to Know: Here’s the very first Wall Road economic downturn get in touch with of the new inflation period

Investors should listen to Fed Chair Jerome Powell, Dudley stated, who has obviously stated that money problems have to tighten.

“If this doesn’t transpire on its have (which would seem not likely), the Fed will have to shock the sector to reach the wanted reaction,” Dudley said. That would mean mountaineering prices substantially larger than marketplace participants at present anticipate simply because the Fed, “one way or another, to get inflation less than control…will need to have to press bond yields higher and inventory charges reduced.”