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Stocks fall, oil slides to start holiday-shortened week

Stocks fall, oil slides to start holiday-shortened week

U.S. stocks sank Monday as Wall Road barreled into a vacation-shortened trading 7 days.

Equity and bond marketplaces will be closed for Thanksgiving on Thursday and conclude trading at 1 p.m. ET on Friday.

The S&P 500 (^GSPC) fell .4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, though the Dow Jones Industrial Ordinary (^DJI) slipped around 45 points, or .1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The technologies-significant Nasdaq Composite (^IXIC) declined 1.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Traders assessed much more Fedspeak in the ultimate hour of Monday’s session. Federal Reserve Bank of San Francisco President Mary Daly mentioned officers could elevate the U.S. central bank’s critical plan price over 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} if inflation does not simplicity. Daly also pointed out that crafting off a 75-basis-stage hike in December is “premature,” and “very little is off the desk.”

“I are likely to be on the much more hawkish aspect of the distribution” Daly explained in a meeting call, referring to the spectrum of her colleagues from most aggressive on tightening policy to the very least.

Oil prolonged losses following studies Saudi Arabia and other OPEC countries are talking about an output enhance. A series of COVID-linked deaths in China also resurfaced fears the region could implement contemporary limits to mitigate latest outbreaks. Both equally functions spurred concerns more than demand, with West Texas Intermediate (WTI) crude futures falling below $80 for each barrel.

The U.S. greenback attained towards other currencies on problems close to the COVID image in China.

Bitcoin (BTC-USD) slid 4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} under $16,000 and ethereum (ETH-USD) tumbled 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to just beneath $1,100 as the impact of cryptocurrency exchange FTX’s collapse continued to permeate crypto markets.

In the meantime, shares of Disney (DIS) roared 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} irrespective of a down day in other parts of the current market just after the media huge designed a surprise announcement late Sunday that previous main government Bob Iger will return to lead the corporation as CEO, productive instantly.

Disney's Chief Executive Officer Bob Iger speaks during the Bloomberg Global Business Forum in New York City, New York, U.S., September 25, 2019. REUTERS/Shannon Stapleton

Disney’s Chief Govt Officer Bob Iger speaks all through the Bloomberg World wide Organization Discussion board in New York Metropolis, New York, U.S., September 25, 2019. REUTERS/Shannon Stapleton

Monday’s moves arrive right after a lackluster week on Wall Street, with sentiment weighed down by renewed concerns in excess of higher fascination fees. The benchmark S&P 500 was down about .7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the interval and the Nasdaq 1.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, whilst the Dow was around flat.

Historically, the week of Thanksgiving has tended to be bullish. In excess of the previous half century, the S&P 500 has attained an normal .5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} during the holiday 7 days and realized a optimistic return 68{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the time, in accordance to knowledge from Schaeffer’s Expense Investigation. The Wednesday just before Thanksgiving has been good 78{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the time at an average gain of .3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, though the working day soon after, 66{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the time, averaging a .2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} raise.

“The inventory market’s ‘lower-inflation’ bump missing some momentum past 7 days, but bulls hoping for the rally to get back again on monitor may possibly be looking at historical trading tendencies all over Thanksgiving,” Chris Larkin, running director of investing at Morgan Stanley’s E*TRADE mentioned in a take note. “While individuals consider time off close to Thanksgiving, the inventory marketplace isn’t so inclined: Even amid a shortened buying and selling week, the SPX since 1950 has moved just about as a lot in the course of Thanksgiving 7 days as it did throughout its normal 5-working day buying and selling time period.”

Buyers are in for a quiet handful of days. Minutes from the Federal Reserve’s November amount-location assembly owing out Wednesday are the spotlight of a light financial calendar this week. On the company facet, a handful of far more earnings are set for launch, which includes Dell Systems (DELL), HP (HPQ), Dollar Tree (DLTR), and Nordstrom (JWN).

NEW YORK, NEW YORK - NOVEMBER 17: Traders work on the floor of the New York Stock Exchange during morning trading on November 17, 2022 in New York City. Stocks are expected to fall as the stock market opened with interest rates rising as Federal Reserve officials signal more interest rate hikes to continue to slow down inflation. (Photo by Michael M. Santiago/Getty Images)

NEW YORK, NEW YORK – NOVEMBER 17: Traders function on the ground of the New York Stock Exchange through early morning investing on November 17, 2022 in New York City. (Picture by Michael M. Santiago/Getty Visuals)

The readout of minutes from the FOMC, which sets monetary policy, is possible to present officials preparing a 50 percent-point charge hike at their December meeting.

DataTrek’s Nicholas Colas points out that the odds for more aggressive financial policy future year greater past week, the two in terms of where by the federal cash price will peak and where they stop subsequent year.

About 1 7 days back, futures pointed to 81{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 19{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} odds on a 50- versus 75-basis-place level hike subsequent thirty day period after a lighter consumer selling price index. Just after hawkish assertions from officials about the require for further more level increases, the odds of a .75{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} hike have moved up somewhat to 24{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

—

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

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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.

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Stocks fall for a second day, Nasdaq slides another 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} as Fed gives policy tightening plans

Stocks fall for a second day, Nasdaq slides another 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} as Fed gives policy tightening plans

Stocks fell for a second working day on Wednesday and premiums soared to new heights right after the Federal Reserve gave more advice on how speedy it will tighten financial plan to battle inflation, increasing considerations it may well gradual the economic system.

The Dow Jones Industrial Ordinary fell 144.67 factors, or .42{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, to 34,496.51. The S&P 500 slid .97{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 4,481.15, and the Nasdaq Composite sank an additional 2.22{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 13,888.82 immediately after falling about 2.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on Tuesday.

“It was a warning to any individual who thinks that the Fed is likely to be extra dovish in their fight towards inflation,” stated Quincy Krosby, main equity strategist at LPL Economic. “Their information is, ‘You’re improper.'”

The Fed’s release of its assembly minutes indicated on Wednesday afternoon that officers “typically agreed” it need to shrink its equilibrium sheet by $95 billion for each thirty day period. The minutes also confirmed central bank officers were being thinking of larger sized price hikes than the usual 25-foundation-place, or quarter-level, increments. Shares dipped to session lows just after the release of the minutes but bounced back somewhat to close the day.

“Lots of contributors famous that — with inflation effectively earlier mentioned the Committee’s aim, inflationary pitfalls to the upside, and the federal funds price very well below participants’ estimates of its longer-operate level — they would have most well-liked a 50 basis place enhance in the goal array for the federal resources amount at this meeting,” the minutes explained.

Meanwhile, the 10-calendar year Treasury yield jumped previously mentioned 2.65{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to a 3-calendar year higher on Wednesday and remained close to that large following the launch of the Fed meeting minutes. The level finished Monday at 2.40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The minutes were from the Fed’s March conference when it elevated prices by a quarter issue and indicated six additional hikes of that magnitude have been coming this 12 months.

“I imagine the inventory current market is finding the strategy that $60 billion Treasurys and $35 billion in home loans is setting up to get authentic,” reported James Caron of Morgan Stanley Financial investment Management. “If they do a further 50 foundation points hike in Could and yet another 50 in June, it is really starting to get additional actual. It is surely not a tailwind for stocks.”

Tech shares led Wednesday’s slide, slipping all over again for a next day as traders rotated out of the group and braced for greater costs to sluggish the overall economy. Apple, Microsoft, Amazon and Tesla contributed to the sector’s decrease. Chipmakers like Nvidia and Marvell Technology also continued their descent, falling about 5.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 2.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, respectively.

Traders ongoing to look for for shares with stable profits, shying absent from all those offering long run progress. Utilities, wellbeing treatment and purchaser staples sectors continued to climb Wednesday, with Amgen and Johnson & Johnson rising extra than 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} just about every. Purchaser staples this sort of as Coca-Cola and Procter & Gamble inched far more than 1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} larger. Walmart jumped 2.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

“These days and yesterday you’re seriously beginning to see the equity marketplace catch up with the bond current market,” said Chris Zaccarelli, CIO at Unbiased Advisor Alliance. “And by that, I suggest equities are beginning to rate in a a lot more aggressive Fed. You might be starting off to see a bid for basic safety, you happen to be seeing that common danger-off shift.”

Inventory picks and investing developments from CNBC Pro:

Officials in latest times have tried using to warn buyers even speedier policy tightening could be ahead. The findings, coupled with latest remarks from Fed Governor Lael Brainard and other individuals, seemed to sign that sentiment.

Earlier Wednesday, Philadelphia Federal Reserve President Patrick Harker said that he is “acutely concerned” about soaring inflation, noting that he expects “a series of deliberate, methodical hikes as the yr proceeds and the info evolve.”

His reviews come less than a day following Brainard indicated support for higher fascination charges and stated a “speedy” reduction of the central bank’s stability sheet could arrive as before long as May well. The remarks pushed shares reduce in the previous session.

“It is of paramount significance to get inflation down,” Brainard stated in the course of a Minneapolis Fed webinar. San Francisco Fed President Mary Daly echoed related sentiments toward inflation on Tuesday.

“What that implies for the marketplaces are ongoing volatility around the uncertainty to greater costs and reduced-revenue cash move stocks, growth variety stocks possibly continuing to get discounted as fees increase,” Cliff Corso of Advisors Asset Management stated on CNBC’s “Globally Exchange.”

Earnings in advance

Traders were also bracing Wednesday for the start out of the corporate earnings season.

Goldman Sachs chief U.S. fairness strategist David Kostin stated Wednesday on CNBC’s “Squawk on the Avenue” that shares with “resilient margins” are much better prepared to climate the present-day surroundings. That contains names this sort of as Alphabet and Nike — which have managed “higher and stable margins” even amid the pandemic, he reported.

“Total, the U.S. equities market probably has 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} upside from these likes between now and the close of the 12 months,” Kostin explained. “Really should we be likely into a recession it will be significant downside, but which is not the base situation suitable now.”

— CNBC’s Patti Domm and Jeff Cox contributed reporting

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Stocks fall, Nasdaq drops as Netflix slides after subscribers miss

Stocks were on track to end a volatile week lower, with investors rotating further away from growth and technology stocks that had outperformed early on during the pandemic.

The S&P 500, Dow and Nasdaq fell during intraday trading. A day earlier, the Nasdaq Composite dropped more than 1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, adding to losses after sinking into a correction earlier this week. The Nasdaq has fallen nearly 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from its most recent record high from November through Thursday’s close. 

Shares of Netflix (NFLX) sank more than 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} after the company posted a first-quarter subscriber growth outlook that fell far short of expectations, with the streaming giant projecting 2.5 million new users for the first quarter of 2022 versus the 6.3 million anticipated, according to Bloomberg data. Shares of Disney (DIS) and Roku (ROKU) fell in sympathy. Meanwhile, Peloton (PTON) — which had been another darling of the so-called “stay-at-home” trade during the pandemic — recovered some losses after falling to a near two-year low on Thursday, after CNBC reported the company was cutting production of its fitness products due to flagging demand. 

“It is these infamous stay-at-home plays … that had been bid up to valuations that get to the point where they’re priced for perfection,” Mark Luschini, chief investment strategist at Janney Montgomery Scott, told Yahoo Finance Live on Thursday. “Anything that is released about the companies’ investment results or prospects that doesn’t meet or exceed very elevated expectations leads to gigantic disappointment in the form of a share price decline.” 

“This is indicative of companies that, again, have valuations that have been bid up by investors who, on disappointment, decide to sell first and ask questions later, and therefore leave huge carnage in their wake as valuations compress to better reflect prospects under a more normal economic climate,” Luschini added.  

The drop in many closely watched, highly valued technology stocks — and the broader stock indexes — also came alongside ongoing investors jitters about a potential near-term move on interest rates from the Federal Reserve. The Fed’s next policy-setting meeting is set to take place next week, with market participants largely pricing in a first interest-rate hike out from the central bank after the Fed’s March meeting. These expectations for higher rates and less liquidity from the Fed this year have also been a key driver of recent equity price action, many strategists noted. 

“I think there is a rotation going on towards those areas of the market that have been neglected for a long time — not just months, but years. Areas like financials and energy. Even health care, which is an area that had done a bit better during the pandemic, but really isn’t seeing any kind of multiples like it did in the past,” Jeffrey Kleintop, Charles Schwab chief global investment strategist, told Yahoo Finance Live on Thursday. 

“I think those areas of the market have more durability here as we look at an environment where earnings growth is slowing so valuations matter more,” he added. “And many of these companies can look to generate earnings growth in this environment of rising interest rates and commodity prices, whereas tech is a bit more challenged as goods demand begins to slow.”

—

1:04 p.m. ET: ‘I certainly think technology and growth is going to be a sector you want to be in’ 

As the Nasdaq sinks further into a correction and individual technology stocks come under considerable pressure, some analysts see the pick-up of tech earnings season next week as the start of a potential reprieve for at least some of these growth names. 

“The re-thinking of valuations really just follows in the wake of rising interest rates. So we averaged 1.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on the yield on the U.S. 10-year for all of last year, and this year we likely average somewhere between 1.75{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996},” National Chief Market Strategist Art Hogan, told Yahoo Finance Live on Friday. “So that price and value calculation is obviously putting pressure on multiples across the technology complex.” 

“At some point in time we’ll look at this and say we’re probably overdone and we’ve taken too much multiple compression,” he added. “And what likely will be the signal that that’s the case will be when we get into earnings season in earnest next week … and see where the winners and losers really sit.” 

“I certainly think technology and growth is going to be a sector you want to be in [for] 2022,” Hogan said. “But I think you want to be in it in companies that measure themselves in price to earnings.”

—

10:40 a.m. ET: Leading Economic Index posts solid jump in December: Conference Board

An index tracking future domestic economic conditions accelerated in December, pointing to still-solid growth trends in the U.S. even amid ongoing concerns over the pandemic, inflation, and a more hawkish tilt to monetary policy. 

The Conference Board’s closely watched Leading Economic Index (LEI) rose 0.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in December, matching consensus estimates, according to Bloomberg data. This picked up from November’s 0.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} clip, which was downwardly revised from the 1.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} gain previously reported. 

“The U.S. LEI ended 2021 on a rising trajectory, suggesting the economy will continue to expand well into the spring,” Ataman Ozyildirim, senior director of economic research at The Conference Board, said in a press statement. 

“For the first quarter, headwinds from the Omicron variant, labor shortages, and inflationary pressures—as well as the Federal Reserve’s expected interest rate hikes—may moderate economic growth,” Ozyildirim added. “The Conference Board forecasts GDP growth for Q1 2022 to slow to a relatively healthy 2.2 percent (annualized). Still, for all of 2022, we forecast the US economy will expand by a robust 3.5 percent—well above the pre-pandemic trend growth.”

—

9:31 a.m. ET: Stocks open lower 

Here’s where markets were trading Friday morning: 

  • S&P 500 (^GSPC): -12.92 (-0.29{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,470.23

  • Dow (^DJI): -69.52 (-0.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,645.87

  • Nasdaq (^IXIC): -57.82 (-0.41{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,095.93

  • Crude (CL=F): -$0.60 (-0.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $84.95 a barrel

  • Gold (GC=F): +$0.10 (+0.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,842.70 per ounce

  • 10-year Treasury (^TNX): -7.8 bps to yield 1.756{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

9:27 a.m. ET: Bitcoin extends declines, falling to around $38,000

Cryptocurrency prices tracked the volatility across risk assets this week. 

Bitcoin, the largest cryptocurrency by market capitalization, saw prices sink by 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to below $38,000 at Friday’s lows, according to Yahoo Finance data. That marked the lowest level since early August.  

Other major cryptocurrency prices also sank. Ethereum fell by more than 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to about $2,800 Friday morning in New York. Solana prices sank 15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to below $120. 

—

7:31 a.m. ET Friday: Stock futures hold lower, Netflix weighs on Nasdaq 

Here’s where markets were trading Friday morning:

  • S&P 500 futures (ES=F): -19.75 points (-0.44{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,455.00

  • Dow futures (YM=F): -68 points (-0.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 34,548.00

  • Nasdaq futures (NQ=F): -115.5 points (-0.78{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,725.50

  • Crude (CL=F): -$1.38 (-1.61{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $84.17 a barrel

  • Gold (GC=F): -$8.60 (-0.47{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,834.00 per ounce

  • 10-year Treasury (^TNX): -5.3 bps to yield 1.781{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

6:01 p.m. ET Thursday: Stock futures open lower

Here’s where markets were trading Thursday evening: 

  • S&P 500 futures (ES=F): -17 points (-0.38{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,457.75

  • Dow futures (YM=F):—41 points (-0.12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 34,575.00

  • Nasdaq futures (NQ=F): -128.25 points (-0.86{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,712.75

NEW YORK, NEW YORK - JANUARY 20: Traders work on the floor of the New York Stock Exchange (NYSE) on January 20, 2022 in New York City. The Dow Jones Industrial Average was up over 200 points in morning trading following days of declines. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – JANUARY 20: Traders work on the floor of the New York Stock Exchange (NYSE) on January 20, 2022 in New York City. The Dow Jones Industrial Average was up over 200 points in morning trading following days of declines. (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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Dow slides but tech stocks outperform as Europe’s COVID struggles rattle markets

Stocks traded mixed on Friday, as growing concerns over nationwide COVID-19 lockdowns in Europe raised fears about new restrictions beyond the continent.

The Dow slid 200 points, or 0.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, while the S&P 500 rose 0.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, but the Nasdaq composite added 0.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, bolstered by rallying technology shares. 

Markets were unsettled after the Austrian government announced a full lockdown starting on Monday, in response to cases of COVID-19 surging in Europe. The lockdown will include both those vaccinated and unvaccinated, it will last for 10 days minimum, but could be extended for 10 days further.

“The news is hitting European markets hard this morning as fears mount that the virus and restrictions will spread across the continent again,” said Jim Reid, chief economist at Deutsche Bank, adding that “the curveball might be the U.S.” given lower rates of vaccination domestically than in Europe.

“So although all the headlines are in Europe at the moment, will the U.S. be more vulnerable than many European countries over the course of the full winter? Recent history suggests the U.S. have a higher bar for economic restrictions related to covid but it also has a lower vaccination rate than their European peers,” he added.

The Nasdaq was boosted by a jump in stocks associated with the “stay-at-home” trade that characterized much of 2020. Treasury yields, which have jumped in response to rising inflation fears, retreated early Friday as investors flocked to safe-haven assets. Brent crude (CL=F) sank by over 3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, reflecting jitters that lockdowns will curb energy demand.

Meanwhile, shares of air carriers Delta Air Lines, United Airlines and American Airlines, and cruiseliners Carnival Corp and Norwegian Cruise Line fell between 1.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 2.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. 

And with the holiday season approaching and cold weather driving more people to meet indoors, public health officials are hoping to mitigate another COVID wave of cases this winter. The FDA on Friday authorized boosters of Pfizer/BioNTech and Moderna COVID-19 vaccines for all adults. 

The U.S House of Representatives on early Friday passed President Joe Biden’s $1.75 trillion bill, however the legislation will be sent to the Senate where negotiations will continue. The bill lays out the Administration’s plans on education, healthcare and the climate.

Also in focus for the markets is Biden’s Federal Reserve chair nomination. Biden told reporters on Tuesday to expect the announcement of a nominee for Fed chair in “the next four days.” The White House has not indicated which way it is leaning, but market participants see two leading options: the reappointment of current chair Jerome Powell, or the elevation of Fed Governor Lael Brainard.

“The market so far is believing that it will be Powell again, but any sort of a change would mean that they want to hear a reiteration of the monetary policy and forward expectations,” Sonali Pier, Pimco’s Managing Director and Portfolio Manager, told Yahoo Finance Live on Thursday.

“[That means] tapering, being at a pace of about $10 billion in treasuries, $5 billion in agency MBS, then thereafter seeing rate hikes but not a significant shift to be more hawkish,” Pier added.

With earnings season ongoing, Foot locker (FL) shares lost ground Friday, even after the athletic shoe and apparel retailer said it expects global supply-chain issues to persist through this quarter. Intuit (INTU) shares soared by over 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} after the financial-software company’s top and bottom lines both beat analysts’ expectations, and hiked its full-year revenue guidance for 2021 to $1 billion.

12:53 p.m. ET: The Dow Slides, Tech Outperforms

Here’s where markets were trading midday on Friday:

  • S&P 500 (^GSPC): +8.730 (+0.18{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,714.09

  • Dow (^DJI): -318.12 (-0.39{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 35,732.83

  • Nasdaq (^IXIC): +109.71 (+0.67{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 16,101.90

  • Crude (CL=F): -$3.01 (-3.81{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $76.00 a barrel

  • Gold (GC=F): -$12.50 (-0.67{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,848.90 per ounce

  • 10-year Treasury (^TNX): -0.4bps to yield 1.543{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

9:30 a.m. ET: Stocks mixed, tech leads Nasdaq higher

Here’s where markets were trading shortly after market open on Friday:

  • S&P 500 (^GSPC): -6.33 (-0.13{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,698.21

  • Dow (^DJI): -214.78 (-0.60{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 35,656.17

  • Nasdaq (^IXIC): +39.95 (+0.28{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 16038.10

  • Crude (CL=F): -$1.51 (-1.91{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $77.50 a barrel

  • Gold (GC=F): -$4.20 (-0.23{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,857.20 per ounce

  • 10-year Treasury (^TNX): unchanged to yield 1.6040{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

7:30 a.m. ET Friday: Stock futures poised for mixed start

Here’s where markets were trading Friday morning:

  • S&P 500 futures (ES=F): -11.75 points (+0.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,689.75

  • Dow futures (YM=F): -194 points (-0.54{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 35,619.00

  • Nasdaq futures (NQ=F): +54.75 points (+0.33{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 16,536.00

  • Crude (CL=F): -$2.65 (-3.35{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $76.36 a barrel

  • Gold (GC=F): +$1.90 (+0.10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,863.30 per ounce

  • 10-year Treasury (^TNX): -0.5 bps to yield 1.529{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

6:28 p.m. ET Thursday: Stock futures open higher

Here’s where markets were trading Thursday evening:

  • S&P 500 futures (ES=F): +0.5 points (+0.11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,706.50

  • Dow futures (YM=F): and +33 points (+0.09{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 35,844.00

Nasdaq futures (NQ=F): +22 points (+0.13{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 16,503.50

A street sign for Wall Street is seen outside the New York Stock Exchange (NYSE) in New York City, New York, U.S., July 19, 2021. REUTERS/Andrew Kelly

A street sign for Wall Street is seen outside the New York Stock Exchange (NYSE) in New York City, New York, U.S., July 19, 2021. REUTERS/Andrew Kelly