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Stocks open higher as investors weigh earnings; Netflix slides

Stocks open higher as investors weigh earnings; Netflix slides

U.S. stocks traded mixed Wednesday as investors took in a host of quarterly earnings results and looked ahead to more data.

The S&P 500 and Dow gained to extend advances from the previous session. The tech-heavy Nasdaq Composite declined as Netflix (NFLX) shares slumped after the company posting an unexpected decline in quarterly subscriber numbers.

Netflix’s disappointing results and guidance came in the midst of an earnings season that has so far been mixed. Earlier Tuesday, Hasbro (HAS) shares gained after the company raised its margin guidance and announced new price increases to counter rising costs. Other closely watched companies missed on major metrics or guidance, however, with Lockheed Martin (LMT) posting a year-over-year revenue decline that sent shares lower following its Tuesday report, and Johnson & Johnson (JNJ) cutting its full-year profit forecast.

And last week, the big banks posted tepid quarterly results, with financials posting their weakest start to an earnings season since the first quarter of 2020, according to Bank of America data. Just over one-third of the 11 financial names that reported results in the past week topped analyst estimates on both sales and earnings per share, analysts at Bank of America said in a note.

Overall, investors this earnings season have been closely attuned to how companies have performed in the face of rampant inflationary pressures, as prices rise at their fastest rates in 40 years. While many companies have opted to raise their own prices to help offset increasingly expensive commodities, transportation and other inputs, questions remain over how long consumers will be willing to continue paying passed-on costs.

And against this backdrop, many strategists are warnings investors to continue bracing for further volatility.

“Volatility works both ways,” said Steve Sosnick, Interactive Brokers chief strategist, told Yahoo Finance Live. He added that Tuesday’s marked move to the upside was simply “socially acceptable volatility.”

“It’s volatility in the right direction,” he said. “But we’re going to have to get used to bigger moves in both directions. And not only single day moves, but sort of multi-day runs.”

—

10:00 a.m. ET: Existing home sales dip in back-to-back month

Sales of previously owned homes fell for a second consecutive month in the U.S. in March, with signs of cooling housing market activity mounting as home prices remain elevated and interest rates creep higher.

U.S. existing home sales fell by 2.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in March to reach a seasonally adjusted annualized rate of 5.77 million, according to the National Association of Realtors. February existing home sales were also downwardly revised to 5.93 million, compared to the 6.02 million previously reported.

The median price for an existing home in the U.S. in March jumped 15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} over last year to reach $375,300.

“Home prices have consistently moved upward as supply remains tight,” Lawrence Yun, chief economist at the National Association of Realtors, said in a press statement. “However, sellers should not expect the easy-profit gains and should look for multiple offers to fade as demand continues to subside.”

—

9:42 a.m. ET: Mortgage applications fall for sixth straight week as rates rise

Mortgage applications across the U.S. declined for a sixth consecutive week as rising interest rates deterred homeowners from refinancing and some new buyers from entering the market. Last week, the average 30-year fixed mortgage rate rose to reach 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

The Mortgage Bankers Association’s weekly index showed mortgage loan application volume fell 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} week-on-week during the period ended April 15. This came following a 1.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} decline during the previous week.

Refinances were down by 8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from the previous week and slid 68{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} versus the comparable week last year. Meanwhile, purchases were down 3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from a week earlier. On a seasonally unadjusted basis, purchases were also down by 14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} over last year.

“The recent surge in mortgage rates has shut most borrowers out of rate/term refinances, causing the refinance index to fall for the sixth consecutive week,” Joel Kan, MBA associate vice president of economic and industry forecasting, said in a press statement Wednesday. “In a housing market facing affordability challenges and low inventory, higher rates are causing a pullback or delay in home purchase demand as well. Home purchase activity has been volatile in recent weeks and has yet to see the typical pick up for this time of the year.”

—

9:30 a.m. ET: Stocks open higher

Here’s where markets were trading shortly after the opening bell Wednesday morning:

  • S&P 500 (^GSPC): +24.30 (+0.54{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,486.51

  • Dow (^DJI): +269.29 (+0.77{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 35,180.49

  • Nasdaq (^IXIC): +39.37 (+0.29{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,658.39

  • Crude (CL=F): +$0.68 (+0.66{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $103.24 a barrel

  • Gold (GC=F): -$10.70 (-0.55{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,948.30 per ounce

  • 10-year Treasury (^TNX): -2.5 bps to yield 2.89{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

9:06 a.m. ET: Procter and Gamble shares rise after sales guidance tops estimates, as price hikes help offset rising costs

Shares of Procter & Gamble (PG) rose Wednesday morning after the consumer staples giant posted fiscal third-quarter results and full-year guidance that exceeded Wall Street’s estimates. The results appeared to affirm that Procter & Gamble’s last round of price hikes announced earlier this year were helping boost sales and counteract some of the impact of rising input costs.

For the third quarter, net sales came in at $19.38 billion, topping estimates for $18.73 billion, according to Bloomberg consensus data. This revenue beat was in turn led by fabric and home care segment sales of $6.7 billion, which includes brands like Tide and Downy. Company-wide organic revenue grew 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, or well above the 6.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} rise anticipated.

P&G also said it saw full-year organic revenue rising between 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, or better than the 5.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} increase anticipated. The company still sees its core earnings per share coming in at as much as $6.00 for the full fiscal year.

—

7:06 a.m. ET: Stock futures head for mixed open

Here were the major moves in markets Wednesday morning:

  • S&P 500 (^GSPC): +3.75 (+0.08{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,463.00

  • Dow (^DJI): +63 (+0.18{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,904.00

  • Nasdaq (^IXIC): -9.75 (-0.07{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,207.5

  • Crude (CL=F): +$0.73 (+0.71{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $103.29 a barrel

  • Gold (GC=F): -$3.90 (-0.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,955.10 per ounce

  • 10-year Treasury (^TNX): -5 bps to yield 2.865{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

6:12 p.m. ET: Stock futures open lower

Here’s where stocks were trading Tuesday evening:

  • S&P 500 futures (ES=F): -18.5 points (-0.41{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,440.75

  • Dow futures (YM=F): -59 points (-0.17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,782.00

  • Nasdaq futures (NQ=F): -124 points (-0.87{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,093.25

NEW YORK, NEW YORK - APRIL 12: Traders work on the floor of the New York Stock Exchange during morning trading on April 12, 2022 in New York City. Data released this morning showed that inflation rose 8.5 percent in March, the highest annual increase since December 1981, amid energy prices soaring due to Russia's war in Ukraine. (Photo by Michael M. Santiago/Getty Images)

NEW YORK, NEW YORK – APRIL 12: Traders work on the floor of the New York Stock Exchange during morning trading on April 12, 2022 in New York City. Data released this morning showed that inflation rose 8.5 percent in March, the highest annual increase since December 1981, amid energy prices soaring due to Russia’s war in Ukraine. (Photo by Michael M. Santiago/Getty Images)

—

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

Read the latest financial and business news from Yahoo Finance

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Stocks open higher after Powell hints at more aggressive rate hikes

Stocks open higher after Powell hints at more aggressive rate hikes

U.S. stocks advanced Tuesday as investors continued to weigh hawkish remarks from Federal Reserve Chair Jerome Powell alongside the ongoing war in Ukraine.

The S&P 500 inched 0.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} higher to 4,479.19 as of 9:32 a.m. ET, and Dow Jones Industrial Average gained 150 points, or about 0.44{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, to 34,705.81. The Nasdaq Composite ticked up 0.42{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 13,897.12. The moves follow a choppy session Monday that saw all three indexes cap last week’s winning streak to close lower after Powell signaled the central bank was prepared to act more aggressively to rein in inflation. Meanwhile, the 10-year U.S. Treasury climbed to yield 2.372{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

The Fed’s top leader reiterated in comments at the National Association for Business Economics Monday that policymakers will lean into higher short-term interest rates “as needed” to mitigate fast-rising price levels, with a goal of bringing inflation back down to an annual pace of about 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} while maintaining low unemployment.

“The choppiness is directly related to the comments,” Robert Schein, chief investment officer at Blanke Schein Wealth Management, told Yahoo Finance Live on Monday. “As soon as Federal Reserve Chairman Jerome Powell stated that exact commentary today, markets sold off.”

The Fed is “going to tighten until something breaks,” he added. “That’s either breaking the back of inflation or growth is going to slow.”

Powell’s comments come just a week after investors met the central bank’s long-anticipated move to lift its benchmark Federal Funds Rate by 0.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} (to a target range of 0.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 0.50{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) with temporary relief after the bump came in on par with what market participants had expected.

Despite providing some clarity to traders who for months have waited for the Fed to take steps forward on tightening monetary conditions, geopolitical turmoil in Eastern Europe and its economic toll continue to muddy the bank’s path ahead in fighting inflation. The Fed is also tasked with beginning quantitative tightening, or rolling assets off its nearly $9 trillion balance sheet.

The CPI print is “not going to look kind,” Allianz Investment Management’s head of ETFs Johan Grahn told Yahoo Finance Live. “That will be the indicator that the Fed is going to hang their hat on.”

Russia’s war in Ukraine also continued to be front-and-center for investors. As of Monday, Ukraine refused to surrender its heavily-attacked port city of Mariupol to Russian forces as the civilian death toll climbed. Energy and commodity prices spiked amid the latest developments in Russia’s war in Ukraine.

U.S. crude oil prices soared more than 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} at session highs to top $112 per barrel, and Brent crude, the international standard, rose above $116 per barrel. Elsewhere in commodities markets, aluminum, palladium and wheat prices also gained on Monday.

Officials in both countries have sporadically signaled a possible negotiation but attempts at talks have so far proven unsuccessful. Ukrainian President Volodymyr Zelenskyy warned recently that if discussions with Vladimir Putin failed, it could mean the start of a third world war.

—

9:30 a.m. ET: Stocks open higher as investors continue to weigh Fed inflation comments

Here’s how stocks opened at the start of Tuesday’s trading session:

  • S&P 500 (^GSPC): +15.12 (+0.34{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,476.30

  • Dow (^DJI): +194.36 (+0.56{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,747.35

  • Nasdaq (^IXIC): +22.26 (+0.16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,860.72

  • Crude (CL=F): +$0.32 (+0.29{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $112.44 a barrel

  • Gold (GC=F): -$3.80 (-0.20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,925.70 per ounce

  • 10-year Treasury (^TNX): +5.7 bps to yield 2.3720{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

7:23 a.m. ET: Bitcoin hits $42,000 as hedge fund Bridgewater plans foray into crypto

Bitcoin (BTC-USD) topped the $42,000 mark following news Ray Dalio’s Bridgewater Associates, the world’s biggest hedge fund, is set to invest in the digital asset.

The coin’s price jumped 3.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $42,888.33 Tuesday morning as of 7:20 a.m. ET.

Ethereum (ETH-USD) also gained on the news, rising 3.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $3,022.01 as of early Tuesday. The cryptocurrency advanced 16.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in a week to $3,020 after its co-founder Vitalik Buterin appeared on the front cover of Time magazine.

Bridgewater’s plan to invest in bitcoin underscores the faith institutional finance has in a long-term upward trajectory for the cryptocurrency. The hedge fund is one of several professional investment management firms adding bitcoin to their investment portfolios.

Ray Dalio, Bridgewater's Co-Chairman and Co-Chief Investment Officer speaks during the Skybridge Capital SALT New York 2021 conference in New York City, U.S., September 15, 2021. REUTERS/Brendan McDermid

Ray Dalio, Bridgewater’s Co-Chairman and Co-Chief Investment Officer speaks during the Skybridge Capital SALT New York 2021 conference in New York City, U.S., September 15, 2021. REUTERS/Brendan McDermid

—

7:00 a.m. ET: Contracts on S&P 500, Dow, and Nasdaq edge higher after Powell remarks

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

  • S&P 500 futures (ES=F): +16.00 points (+0.36{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,468.25

  • Dow futures (YM=F): +169.00 points (+0.49{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,605.00

  • Nasdaq futures (NQ=F): +46.25 point (+0.32{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,416.75

  • Crude (CL=F): -$0.62(-0.55{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $111.50 a barrel

  • Gold (GC=F): -$1.90 (-10.00{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,927.60 per ounce

  • 10-year Treasury (^TNX): +0.00 bps to yield 2.315{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

6:00 p.m. ET Monday: Stock futures tick slightly higher after indexes snap winning streak

Here’s where markets were trading heading into the overnight session Monday:

  • S&P 500 futures (ES=F): +4.00 points (+0.09{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,456.25

  • Dow futures (YM=F): +47.00 points (+0.14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,483.00

  • Nasdaq futures (NQ=F): +16.75 point (+0.12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,387.25

  • Crude (CL=F): +$0.78 (+0.70{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $112.90 a barrel

  • Gold (GC=F): +$6.80 (+0.35{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,936.30 per ounce

  • 10-year Treasury (^TNX): +4.3 bps to yield 2.191{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

NEW YORK, NEW YORK - MARCH 16: Traders work on the floor of the New York Stock Exchange (NYSE) on March 16, 2022 in New York City. The Dow started off the day in positive territory, extending yesterday's rally. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – MARCH 16: Traders work on the floor of the New York Stock Exchange (NYSE) on March 16, 2022 in New York City. The Dow started off the day in positive territory, extending yesterday’s rally. (Photo by Spencer Platt/Getty Images)

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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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Presidents Day or Washington’s Birthday? Is the U.S. stock market open? Here are trading hours.

Presidents Day or Washington’s Birthday? Is the U.S. stock market open? Here are trading hours.

U.S. money marketplaces will be closed on Monday in observance of Presidents Working day, or Washington’s Birthday, if you favor.

The Intercontinental Trade Inc.
ICE,
-.31{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
-owned New York Stock Exchange and the Nasdaq
NDAQ,
-.20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
will be shut on Feb. 21. And the Securities Industry and Fiscal Markets Affiliation, or Sifma, has recommended no buying and selling in dollar-denominated securities.

That means there will be no buying and selling in the closely watched 10-year Treasury notice
TMUBMUSD10Y,
1.927{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
—as properly as charges markets, which include dollars marketplaces and certificates of deposit — and the Dow Jones Industrial Typical
DJIA,
-.68{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996},
the S&P 500 index
SPX,
-.72{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
 and the Nasdaq Composite Index
COMP,
-1.23{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

The current market closure arrives as buyers are observing increasing tensions in between Russia and Ukraine, as investors also brace for a routine of increased desire costs as the U.S. Federal Reserve combats COVID-induced inflation.

Go through: Here’s the technology remaining used to check out Russian troops as Ukraine invasion fears linger

With these twin issues looming, Presidents Day might give traders some time to gather by themselves amid turbulent occasions in economical marketplaces.

Presidents Working day, meanwhile, also has a choppy history.

Congress declared George Washington’s birthday a holiday getaway in 1879, according to the Library of Congress. The republic’s initial president was born on Feb. 22, 1732.

The holiday was at initially only celebrated in just the District of Columbia but became greatly acknowledged as a federal getaway in 1885, marking the 1st time an American individual was memorialized by way of a bank holiday getaway.

The Uniform Holiday seasons Act of 1968 changed the day of commemoration to the third Monday of February. The Library of Congress’s web page suggests that the day’s designation was in no way altered to Presidents Working day formally but is generally referred to by that title since Feb. 12 is the birthday of the 16th U.S. president, Abraham Lincoln.

The vacation is continue to often referred to as Washington’s Birthday, as it is by the NYSE.

It is that background of recognizing, at first, a person president and then, afterwards, two presidents, or the presidency in common, that may possibly be to blame for the design versions that are inclined to come about in composed references to Presidents Working day — or alternately, President’s Working day or Presidents’ Day.

Presidents Working day is the favored model for this sort of journalistic regular setters as the Involved Push Stylebook (whose Twitter account tends to tweet a reminder annually) and The Wall Avenue Journal’s type information.

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Stock futures open slightly higher ahead of Fed decision

Stock futures edged up Tuesday evening as investors looked ahead to the Federal Reserve’s final monetary policy decision of 2021 and weighed the central bank’s potential response to persistent inflationary pressures. 

Contracts on the S&P 500 ticked higher. The blue-chip index closed out Tuesday’s session in the red for a second straight session, with technology stocks leading the way lower. The Nasdaq ended the session down by more than 1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.  

All eyes on Wednesday will be on the Federal Reserve’s monetary policy statement and press conference by Federal Reserve Chair Jerome Powell. Many market participants expect these will set the stage for the Fed to speed the withdrawal of its crisis-era stimulus programs, with the firming economic recovery and soaring inflation suggesting the central bank has room for a more hawkish tilt to policy. Last week’s Consumer Price Index showed the fastest surge in U.S. consumer prices since 1982 on a year-over-year basis. And on Tuesday, the U.S. Producer Price Index jumped by the most on record at a 9.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} year-over-year increase. 

Specifically, many investors anticipate the Fed will ramp up the rate of tapering of its asset-purchasing program, which took place at a rate of $120 billion per month in combined Treasuries and agency mortgage-backed securities from the start of the pandemic through November. Last month, the Fed began dialing back these purchases by $15 billion, and announced another $15 billion reduction for December. 

“We don’t think that the Fed is really going to have any surprises for the markets tomorrow. They’re probably going to announce that they’re going to … accelerate tapering, and that they’ll probably finish that by March. But we think that they’re going to leave themselves lots flexibility around raising interest rates,” Tracie McMillion, Wells Fargo Investment Institute head of global asset allocation strategy, told Yahoo Finance Live on Tuesday. She added she expects just one interest rate hike from the Federal Reserve in the second half of next year. 

Other pundits, however, expect an earlier liftoff on interest rates, which maybe be reflected in the Federal Open Market Committee’s (FOMC) updated Summary of Economic Projections on Wednesday. 

“The announcement of faster tapering after [Wednesday’s] FOMC meeting is a done deal; we’d be astonished by anything other than a plan to complete asset purchases by the end of March at the latest,” wrote Ian Shepherdson, chief economist at Pantheon Macroeconomics, in a note on Tuesday. He expects the Fed to stick to its prior plan of purchasing $90 billion in its asset-purchase program this month, before doubling the rate of tapering from its current $15 billion per month starting in January.

“That would mean purchases drop to $60 billion in January, $30 billion in February, and zero in March, leaving the door open to a rate hike that month if the inflation outlook has not improved, via a clear and sustained increase in the labor force participation rate,” he added. 

A number of strategists noted the trading activity in recent sessions and weeks has reflected the market pricing of a more hawkish Fed. Software and other growth names were some of the biggest laggards in the major indexes during Tuesday’s session. 

“When you have an anticipation of higher interest rates, growth stocks or long-duration growth stocks certainly get hit the hardest,” Art Hogan, national chief market strategist, told Yahoo Finance. Live on Tuesday. “When you do that net present value calculation with a higher interest rate, that implied multiple or ascribed multiple to growth names comes in. So a lot of that’s been priced in. When you think about some of those real growth-y names and momentum names and risk assets, they’ve seen a lot of carnage.”

“What the market is trying to tell us here is that when you set your asset allocation plan for next year, you want to have a barbell approach with growth on one side — you want to have those growth names that are actually valued at a multiple to earnings, not a multiple to revenues or a multiple to cash flows or a multiple to sales,” he added. “We anticipate 2022 is going to be very much like 2021, where you really want to have a balance between growth and value.”

—

6:24 p.m. ET Tuesday: Stock futures edge up ahead of Fed decision

Here were the main moves in markets as the overnight session kicked off on Tuesday: 

  • S&P 500 futures (ES=F): +2.25 points (+0.05{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,639.25

  • Dow futures (YM=F): +25 points (+0.07{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 35,577.00

  • Nasdaq futures (NQ=F): +12.25 points (+0.08{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,937.00

NEW YORK, NEW YORK - DECEMBER 13: Traders work on the floor of the New York Stock Exchange (NYSE) on December 13, 2021 in New York City. As investors are still concerned about rising prices due to inflation, the Dow Jones Industrial Average dropped 175 points in Monday morning trading. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – DECEMBER 13: Traders work on the floor of the New York Stock Exchange (NYSE) on December 13, 2021 in New York City. As investors are still concerned about rising prices due to inflation, the Dow Jones Industrial Average dropped 175 points in Monday morning trading. (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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Scotia Wealth Management to sponsor Chile Open

SANTIAGO, Chile and TORONTO, Ontario–Scotiabank (TSX: BNS) today announced that the Bank has become the title sponsor of the Scotia Wealth Management Chile Open. This PGA TOUR Latinoamérica event takes place from December 6-12, 2021 in the Santiago suburb of Vitacura. The terms of this new sponsorship agreement span three years and include exclusive (financial industry) naming rights, onsite and broadcast brand exposure and client hosting and experiences.

In addition, Scotiabank has entered into a relationship with the Chilean Golf Federation and Joaquin Niemann, a PGA TOUR winner and member of the 2019 Presidents Cup International Team, Chile’s No. 1-ranked player and the 30th-ranked player in the world. With this sponsorship, Niemann’s bag will prominently feature the Scotia Wealth Management logo during tournament play and will participate in exclusive client experiences during the new Scotia Wealth Management Chile Open.

“Scotiabank is proud to partner with the PGA TOUR to deliver the Scotia Wealth Management Chile Open and to offer our clients in Chile and across the Pacific Alliance with access to this premier PGA TOUR event,” said Ignacio Ruiz-Tagle, Vice President of Scotia Wealth Management in Chile. “This new sponsorship adds to Scotiabank’s long history of supporting football clubs and events across the Pacific Alliance. We look forward to continuing support of the events that matter to our clients and providing them with unique client experiences.”

“We are very proud to have Scotia Wealth Management join us as the title sponsorship of the Scotia Wealth Management Chile Open presented by Volvo,” said Todd Rhinehart, PGA TOUR Latinoamérica Executive Director. “It is truly exciting to have Scotiabank join our growing family of partners as it shows the continued growth of the sport and our tour in the region. We look forward to the success and growth of this partnership as we kick off our second event of the season on one of the most remarkable courses in Latin America.”

“We are also delighted to welcome Chilean PGA player Joaquin Niemann as a Scotiabank Ambassador,” continued Ruiz-Tagle. “Joaquin is known for his quick pace of play and his gallery-pleasing birdies, and he has been delighting crowds on the PGA TOUR for years. We are proud that he is carrying the Scotia Wealth Management brand on his bag during tournament play, and we look forward to supporting him in his continued quest for the top of the leaderboard.”

“I am proud to carry the Scotia Wealth Management brand at the inaugural Scotia Wealth Management Chile Open and I look forward to a winning PGA TOUR season,” said Joaquin Niemann, a six-shot winner of the PGA TOUR’s Military Tribute at The Greenbrier in 2019. “I admire Scotiabank’s long-time connections to communities across the Pacific Alliance and am honoured to be a Scotiabank Ambassador in the Pacific Alliance.”

Ahead of the event, Scotia Wealth Management will host a Monday pro-am, giving 40 clients the opportunity to play on the championship course in advance of the tournament. Niemann will be in attendance and participate.

PGA TOUR Latinoamérica last conducted this tournament in 2019 when John Somers won the event at Club de Golf Mapocho. The tournament has been a part of the PGA TOUR Latinoamérica schedule five times (2013-15 and 2018-19).

Scotia Wealth Management is delivered by a team of local and global experts, who provide comprehensive wealth management brokerage and advice for each stage of clients’ lives—for their families, their businesses and their futures. Scotia Wealth Management combines the client’s vision, with the international wealth management expertise of the team to deliver a team-based, total wealth management approach.

 

About Scotiabank

Scotiabank is a leading bank in the Americas. Guided by its purpose “for every future, it helps its customers, their families and their communities achieve success through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of approximately 90,000 employees and assets of approximately $1.2 trillion (as of October 31, 2021), Scotiabank trades on the Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS). For more information, please visit http://www.scotiabank.com and follow on Twitter @ScotiabankViews.

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Futures open flat as Omicron concerns subside

Stock futures opened relatively flat on Wednesday evening, though sustaining gains posted by a three-day recovery rally that was led by cooled investor concerns around the Omicron variant.

Dow futures inched up 0.02{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, while contracts on the tech-focused Nasdaq Composite ticked up 0.10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. All major indexes closed up, with the S&P 500 gaining 14.46 points to close the session at 4,701.21, just 0.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} shy of the trading session on Nov. 24, a day before the latest COVID-19 variant was announced by the World Health Organization. 

The moves were supported by eased virus fears after Pfizer Inc. and BioNTech reported that early lab studies show a third dose of their coronavirus vaccine mitigates the Omicron variant. The vaccine makers had indicated the initial two doses may not be enough to protect against infection from Omicron. Shares of Pfizer (PFE) traded 0.62{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} lower on Wednesday, closing at $51.40.

“We do think that there is fundamental support there for markets to continue to move higher here,” Emily Roland, co-chief investment strategist at John Hancock investment management, told Yahoo Finance Live on Tuesday. “Obviously we had a couple of things spook us over the last week or so, the emergence of the Omicron variant as well as this pivot from the Fed, potentially seeing them accelerating their tapering of asset purchases here. But the bottom line is that the economy is strong.”

With virus concerns diminishing, investors are pivoting their attention back to economic data, awaiting Consumer Price Index (CPI) figures on Friday to assess the extent inflationary pressures will persist.

“If the Omicron variant was to lead to a resurgence in goods spending at the expense of services or to further complicate supply disruptions, there could be a clear inflationary impact, too,” HSBC economist James Pomeroy wrote earlier this week in a research note to clients. “The inflation news in the past few weeks has been decidedly mixed — with upside surprises in both the U.S. and eurozone being offset by the possibility of some of the supply chain issues starting to alleviate, while energy prices have fallen sharply in recent days.

Separately, Apple shares rose 2.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} closing at $175.08 Wednesday — hitting a third-consecutive record high. The iPhone maker is on the cusp of becoming a $3 trillion company. The milestone would be reached at a time when the company is expected to foray into augmented and virtual reality with the launch of headsets in 2022. 

6:57 p.m. ET Wednesday: Stock futures flat

Here were the main moves in markets in late trading on Wednesday:

  • S&P 500 futures (ES=F): -1.75 points (-0.04{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,697.25

  • Dow futures (YM=F): + -8 points (-0.02{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 35,728

  • Nasdaq futures (NQ=F): -16.50 points (-0.10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 16,375.75

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