Tag: Stock

Posted on

Stock futures climb after strong economic data helps ease Omicron concerns

Stock futures climb after strong economic data helps ease Omicron concerns

The S&P 500 closed at a record on Thursday in a pre-holiday rally along with the Dow and Nasdaq, buoyed by positive data that suggested the Omicron variant was less likely to lead to hospitalizations. The indexes recouped losses from earlier this week after investors shrugged off worries the variant would stunt economic recovery.

The S&P closed at an all time high of 4,725.72, while the Dow ended the week just shy of 36,000. The Nasdaq Composite also closed 130 points up, or 0.85{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

“One of the ways pandemics end is significant mutation of the virus. It looks like Omicron may be our friend in that regard, significant mutations different enough from the parent that it doesn’t make people as sick,” True Health Initiative President Dr. David Katz told Yahoo Finance Live.

In other positive news on the COVID-19 front, Merck (MRK) received authorization from the U.S. Food and Drug Administration for its at-home COVID-19 drug, just one day after Pfizer (PFE) was also approved for use of its own treatment.

The pill developed by Merck in conjunction with Ridgeback Biotherapeutics, called molnupiravir, was shown to reduce hospitalizations and deaths by around 30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in clinical trial data. Pfizer’s pill was reported to be 90{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} effective at preventing hospitalizations and deaths in high-risk patients.

Shares of Merck closed down 0.54{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in early trading at $75.75 a piece, while Pfizer’s stock closed at $58.66 per share, down 1.49{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Investors weighed a trove of economic releases ahead of the holiday weekend.

The Labor Department reported that initial jobless claims totaled 205,000, sustaining a downward trend from the highs of their pandemic peak and reflecting labor market tightness brought on by a demand for workers heading into the new year. The latest print brings the four-week moving average for new claims to its lowest in 52 years, ticking up by 2,750 week-over-week to reach 206,250.

Meanwhile, U.S. consumer prices accelerated at the fastest pace in nearly four decades as shoppers confront rising inflation levels ahead of the holidays.

“Workers have a lot of power, and that’s likely to result in continued wage gains,” Girard chief investment officer Timothy Chubb told Yahoo Finance. “What worries us from an inflation standpoint is, at what point do we potentially see some of those inflation risks sort of hand the baton to the labor market?”

Meanwhile, November sales of new U.S. homes jumped 12.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to a seven-month high of 744,000, buoyed by low mortgage rates and higher demand in the housing industry.

U.S. durable goods orders rose by 2.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in November, up from the prior month, boosted by a sharp rise in aircraft orders.

In Wednesday’s trading session, investors weighed an upbeat print on consumer confidence levels and the release of an upwardly revised estimate for domestic GDP, placing all three major averages in the green after a mixed open.

The Conference Board reported consumer confidence increased by a greater-than-expected margin in December, with the headline index at 115.8 during the month and higher than Bloomberg’s consensus estimates of 111.0. In November, the index had a reading of 111.9, revised from an initial report of 109.5. Meanwhile, the nation’s gross domestic product grew at an annual rate of 2.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in the third quarter in the final estimate from the Bureau of Economic Analysis after the initial report of 2.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

“We’ve been saying that this is definitely a buy the dip sort of market because we expect more earnings upgrades to come,” Anik Sen, PineBridge Investments global head of equities told Yahoo Finance Live. “We think that the real debate should be about the length and strength of the economic cycle ahead.”

Thursday’s market gains may be the start of the year-end Santa Claus Rally — one in which stocks climb higher in the final seven trading sessions of a year, plus the first two trading days of the new year. Starting today, traders are looking to see whether nearly a century of data will uphold.

For reasons unclear, over the past 92 years, the S&P 500 gained 77{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the time during the year-end rally period, according to data from Sundial Capital Research. The average gain in this nine-day trading period tallied 2.66{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

4:00 p.m. ET: S&P 500 closes at a record

Here were the main moves as markets closed ahead of the Christmas weekend:

  • S&P 500 (^GSPC): +29.16 (+0.62{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,725.72

  • Dow (^DJI): +196.57 (+0.55{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 35,950.46

  • Nasdaq (^IXIC): +131.48 (+0.85{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,653.37

  • Crude (CL=F): +$1.13 (+1.55{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $73.89 a barrel

  • Gold (GC=F): +$7.90 (+0.44{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,810.10 per ounce

  • 10-year Treasury (^TNX): +3.6 bps to yield 1.4930{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

12:32 p.m. ET: S&P 500 climbs to new high

Here were the main moves during intraday trading:

  • S&P 500 (^GSPC): +32.83 (+0.70{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,729.39

  • Dow (^DJI): +230.23 (+0.64{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 35,984.12

  • Nasdaq (^IXIC): +128.35 (+0.83{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,650.25

  • Crude (CL=F): +$0.92 (+1.26{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $73.68 a barrel

  • Gold (GC=F): +$6.80 (+0.38{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,809.00 per ounce

  • 10-year Treasury (^TNX): +3.6 bps to yield 1.4930{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

10:21 a.m. ET: New homes sales rise to highest since April

November sales of new U.S. homes jumped 12.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to a seven-month high. The Census Bureau reported that new home sales rose 82,000 last month from October to 744,000, buoyed by low mortgage rates and higher demand in the housing industry.

Forecast ranged between 737,000-850,000 across 51 estimates, with a median of 770,000, according to Bloomberg data.

The median sales price of a new home sold in November was $416,900, 14.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} higher than a year ago.

—

9:30 a.m. ET: Markets open higher following economic releases

Here were the main moves in markets at open Thursday morning:

  • S&P 500 (^GSPC): +10.69 (+0.23{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,707.25

  • Dow (^DJI): +102.67 (+0.29{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 35,856.56

  • Nasdaq (^IXIC): +180.81 (+1.18{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,521.89

  • Crude (CL=F): +$0.12 (+0.16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $72.88 a barrel

  • Gold (GC=F): +$5.30 (+0.29{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,807.50 per ounce

  • 10-year Treasury (^TNX): +0.5 bps to yield 1.4620{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

9:07 a.m. ET: Consumer prices accelerate, while spending slows

U.S. consumer prices accelerated at the fastest pace in nearly four decades. The Commerce Department reported an increase of 5.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} over the past 12 months, reflecting the fastest gain in 39 years as shoppers confront rising inflation levels ahead of the holidays. 

Meanwhile, personal spending rose 0.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in November, a slowdown from last month’s print of 1.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The figure, which accounts for 70{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of economic activity, comes amid the latest wave of COVID-19 cases, hinting at the possibility of a broader economic slowdown. 

Personal incomes rose 0.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in November, down slightly from the 0.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} increase in October.

—

8:42 a.m. ET: Durable goods orders beat expectations

U.S. durable goods orders rose by 2.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in November, up from the prior month, boosted by a sharp rise in aircraft orders.

Core capital goods orders, a measure of business investment in equipment that excludes aircraft and military hardware, fell 0.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} after an upwardly revised 0.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} increase in October, according to Bloomberg.

The median Bloomberg estimates projected a 0.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} increase in core capital goods orders and a 1.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} rise in total durables bookings.

—

8:30 a.m. ET: First-time unemployment filings remain at pre-pandemic levels

Initial jobless claims remained at pre-pandemic lows, sustaining a downward trend from the highs of their coronavirus peak and reflecting labor market tightness brought on by a demand for workers heading into the new year.

The Labor Department reported on Thursday that new initial jobless claims totaled 205,000 for the week ending December 18, on par with consensus estimates. The latest print brings the four-week moving average for new claims to its lowest in 52 years, ticking up by 2,750 week-over-week to reach 206,250.

“The direction in the labor market recovery remains positive, with demand still strong,” Rubeela Farooqi, chief economist for High Frequency Economics, wrote in a note. “Labor shortages are persisting, preventing a stronger recovery, although these appeared to ease somewhat in November.”

—

7:00 a.m. ET: Contracts on Dow, S&P, and Nasdaq edge higher ahead of open

Here’s how markets were moving in early trading on Thursday:

  • S&P 500 futures (ES=F): +13.75 points (+0.29{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,699.75

  • Dow futures (YM=F): +107.00 points (+0.30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 35,739.00

  • Nasdaq futures (NQ=F): +34.75 points (+0.21{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 16,204.50

  • Crude (CL=F): +$0.20 (+0.27{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $72.96 a barrel

  • Gold (GC=F): +$5.20 (+0.29{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,807.40 per ounce

  • 10-year Treasury (^TNX): +0.08 bps to yield {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} 130.66

—

6:01 p.m. Wednesday ET: Stock futures flat ahead of overnight trading

Here’s how markets were moving in late trading on Wednesday:

  • S&P 500 futures (ES=F): +4.00 points (+0.09{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,690.00

  • Dow futures (YM=F): +19.00 points (+0.05{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 35,651.00

  • Nasdaq futures (NQ=F): +11.05 points (+0.07{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 16,181.25

  • Crude (CL=F): +$0.30 (+0.41{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $73.06 a barrel

  • Gold (GC=F): +$3.00 (+0.17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,805.20 per ounce

  • 10-year Treasury (^TNX): +0.06 bps to yield {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} 161.4375

—

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

Posted on

Live Updates: Latest Inflation, Business and Stock Market News

Live Updates: Latest Inflation, Business and Stock Market News
Credit score…Gabby Jones for The New York Instances

The Supreme Court explained on Wednesday night that it would hold a special hearing upcoming thirty day period to evaluate the legality of two initiatives at the coronary heart of the Biden administration’s endeavours to deal with the coronavirus in the place of work.

The court explained it would go with extraordinary pace on the two actions, a vaccine-or-screening mandate aimed at large businesses and a vaccination prerequisite for certain well being treatment personnel, environment the instances for argument on Friday, Jan. 7. The justices experienced not been scheduled to return to the bench right up until the subsequent Monday.

Both equally sets of instances experienced been on what critics connect with the court’s shadow docket, in which the courtroom decides crisis applications, at times on issues of excellent consequence, without having comprehensive briefing and argument. The court’s decision to listen to arguments on the apps may perhaps have been a reaction to mounting criticism of that exercise, Adam Liptak stories for The New York Times.

The much more sweeping of the two steps, directed at enterprises with 100 or additional staff members, would affect extra than 84 million personnel and is central to the administration’s initiatives to handle the pandemic. The administration believed that the measure would result in 22 million men and women to get vaccinated and protect against 250,000 hospitalizations.

The next measure calls for wellbeing treatment workers at hospitals that receive federal dollars to be vaccinated from the virus. It “will save hundreds or even hundreds of life each thirty day period,” the administration wrote in an crisis application.

The Supreme Court docket has repeatedly upheld state vaccine mandates in a variety of options in opposition to constitutional difficulties. But the new conditions are unique, mainly because they mostly present the query of no matter if Congress has approved the government department to institute the needs.

The respond to will typically convert on the language of the relevant statutes, but there is purpose to consider that the court’s 6-justice conservative the greater part will be skeptical of wide assertions of government electrical power.

The very last time the Supreme Courtroom deemed a Biden administration application addressing the pandemic — a moratorium on evictions — the justices shut it down.

“Our program does not permit organizations to act unlawfully even in pursuit of fascinating finishes,” the court docket stated in August in an unsigned view, over the dissents of the a few liberal justices.

The vaccination-or-tests requirement for massive employers was issued in November by the Labor Department’s Occupational Safety and Well being Administration, or OSHA.

Businesses are authorized to give their employees the solution to be tested weekly alternatively of getting the vaccine, however they are not expected to spend for the tests. The rule helps make an exception for staff who do not occur into near make contact with with other folks at their positions, like all those who function at residence or completely outdoor.

Less than a 1970 law, OSHA has the authority to problem unexpected emergency policies for workplace safety, presented it can clearly show that workers are uncovered to a grave hazard and that the rule is needed.

States, firms and spiritual teams challenged the evaluate in appeals courts about the nation, and a unanimous three-decide panel of the U.S. Court of Appeals for the Fifth Circuit, in New Orleans, had ruled in favor of some of the challengers, blocking the measure.

Past 7 days, following the difficulties had been consolidated right before the U.S. Court of Appeals for the Sixth Circuit, in Cincinnati, a divided 3-choose panel reinstated the measure.

Almost quickly, more than a dozen challengers requested the Supreme Court docket to block the evaluate. Read through THE Whole Report →

Posted on

FactSet Stock Hits Record High After Analysts Boost Price Targets Post Solid Q1 Earnings

FactSet Stock Hits Record High After Analysts Boost Price Targets Post Solid Q1 Earnings

FactSet Study shares scaled to a new report significant on Wednesday as many equity analysts lifted their rate targets right after the money knowledge and program business conquer earnings and earnings estimates for the fiscal to start with quarter.

The Norwalk, Connecticut-based mostly company that supplies fiscal analytics and services to the financial investment group globally described quarterly adjusted earnings of $3.25​​ per share for the quarter ended in November, beating the sector expectations of $3.00 for each share.

The info business reported its revenue jumped in excess of 9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $424.73 million from a year previously, also topping the Wall Road consensus estimates of $419.13 million.

For the total yr, the agency anticipates earnings amongst $12.30 to $12.50 for each share range, with revenue in the vary of $1.71 billion to $1.72 billion.

Following this, FactSet stock hit a history higher of $478.89 on Wednesday. It soared above 43{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} so much this year.

FactSet Inventory Selling price Forecast

Morgan Stanley raised the foundation target selling price of $352 from $323 with a significant of $556 underneath a bull circumstance and $196 beneath the worst-case circumstance. The organization gave an “Underweight” ranking on the monetary analytics company’s stock.

“Strong organic growth led to a beat in the quarter, though new CFO, Linda Huber, provided insight into margin initiatives. We proceed to favor other names across the Facts Expert services team with bigger EPS development that trade at lessen multiples. We raise our rate focus on to $352, but stay UW,” pointed out Toni Kaplan, equity analyst at Morgan Stanley.

“We believe that FactSet’s (FDS) several is at hazard provided FDS trades at a significant high quality to its heritage and peers. We like other shares in our Analytics coverage that provide far better worth on a advancement-modified basis. Marketplace conditions proceed to be tough, pressuring expansion. We presume a CAGR (’19-’25E) of 6.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for revenues with adj. working margins of ~34{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in 2025.”

Many other analysts have also up to date their stock outlook. CFRA elevated the target cost to $470. Jefferies lifted the concentrate on price to $482 from $388. Stifel upped the target value to $468 from $400. Credit score Suisse increased the target rate to $475 from $395.

Complex examination also suggests it is superior to get now as 100-working day Going Normal and 100-200-working day MACD Oscillator alerts a sturdy purchasing possibility.

However, ten analysts who supplied inventory scores for FactSet in the past a few months forecast the typical price in 12 months of $439.67 with a higher forecast of $550.00 and a very low forecast of $351.00.

The typical selling price concentrate on signifies a -7.91{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} improve from the very last price of $477.43. Of these ten analysts, two rated “Buy”, five rated “Hold” even though a few rated “Sell”, according to Tipranks.

Analyst Feedback

“What to do with FactSet (FDS) shares: Invest in far more if you feel FY2022 organic ASV can development previously mentioned the higher close of advice assortment and that for a longer period-term there could be harmony sheet and portfolio-driven catalysts that are underappreciated (even further M&A and so forth.). We prefer the sidelines for now and hold out for a far better entry position,” mentioned Hamzah Mazari, equity analyst at Jefferies.

Look at out Forex Empire’s earnings calendar

This posting was originally posted on Forex Empire

Extra From FXEMPIRE:

Posted on

Stock futures open slightly higher ahead of Fed decision

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)

—

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

Posted on

Stock market news live updates: December 14, 2021

Stock market news live updates: December 14, 2021

Markets edged lower in early trading Tuesday following declines in yesterday’s session as investors tune in for on a prolific week in Washington that includes the Federal Reserve’s final policy-setting meeting of 2021, set to commence today, and the release of new prints on retail sales, housing starts and other economic data.

All three major U.S. indexes were down amid figures from the Department of Labor that showed wholesale prices soared by a record 9.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in November from a year earlier, the fastest annual pace on record for the indicator.

Traders are awaiting a decision from the Fed on how quickly the central bank will tighten monetary policy amid a backdrop of fresh inflation numbers that reflected the fastest annual increase in nearly four decades. The Labor Department’s Consumer Price Index (CPI) soared 6.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in November compared to last year, according to figures published last week.

The Federal Open Market Committee (FOMC) is scheduled to hold its two-day policy-setting meeting starting on Tuesday, followed by the release of the monetary policy statement and remarks from Federal Reserve Chair Jerome Powell Wednesday. An updated Summary of Economic Projections outlining individual members’ outlooks for economic conditions and interest rates is set to accompany the statement.

The Fed has been under pressure to control rising inflation levels, as investors watch for clues of a faster taper that could set the stage for earlier rate hikes.

“Because inflation expectations do appear to be adaptive, our view is that the longer inflation stays elevated, the greater the risk that consumers adjust their behaviors in a way that contributes to persistently elevated inflation” wrote PIMCO economist Tiffany Wilding in a recent note to clients.

“We believe the Fed will want to manage this risk by shortening the time over which it winds down its purchases of U.S. Treasuries and agency mortgage-backed securities (MBS), aiming to end the program in March 2022, while also signaling a June rate hike is likely,” said Wilding.

PIMCO managing director and portfolio manager Sonali Pier also separately told Yahoo Finance Live that the firm expects to see two hikes in 2022, three hikes in 2023, and potentially four in 2024, with the Fed trying to bring the policy rate to neutral.

“Amid proliferating signs of solid growth and a robust job market, various measures depict a deeply troubled economy,” wrote Oxford Economics senior economist Bob Schwartz in a new report. “Households are downbeat, according to sentiment surveys, and the so-called ‘misery index‘ that adds together inflation and unemployment hovers around recession levels.”

Markets await a trove of fresh economic data this week. November retail sales, out on Wednesday, are expected to rise by 0.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, according to Bloomberg consensus estimates. And November housing starts are forecasted to see a month-over-month increase of 3.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Meanwhile, Morgan Stanley projects the U.S. unemployment rate will drop to 3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in 2022.

“It’s stunning to see how much the rate has fallen in the last five months,” Morgan chief U.S. economist Michael Feroli told Yahoo Finance Live. “We expect that pace of decline to slow, but it doesn’t take much to get below 4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, even with a tick up in the labor participation rate which has been depressed over the last year and a half.”

12:05 p.m. ET: Microsoft posts biggest drop since 2020

Shares of Microsoft (MSFT) were down more than 4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in midday trading, contributing to the Dow’s losses as the broader markets edged lower.

The software giant posted its biggest drop since last October, according to Bloomberg data, adding to yesterday’s loss of nearly 1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} at close.

Separately, J.P. Morgan released fresh research on Tuesday that said investors overlook Microsoft’s leading position in data management. Data platform solutions contributed to about 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of Microsoft’s total revenue in 1H21, up from roughly 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in 2017, according to the bank’s note, which also said much of the company’s growth is driven by cloud data platforms that grew from about 3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of total revenue to about 7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in the same time period. J.P. Morgan expects this to be a key source of upside heading into 2022.

Microsoft had a year of stunning numbers that made it Yahoo Finance’s company of the year. The tech heavy weight passed a $2 trillion market capitalization in June and reported a $176 billion surge in revenue — a nearly 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} year-over-year increase.

11:13 a.m. ET: Dow reverses comeback, shedding more than 100 points

Here were the main moves in markets as of 11:13 a.m. ET:

  • S&P 500 (^GSPC): -52.68 (-1.13{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,616.29

  • Dow (^DJI): -121.43 (-0.34{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 35,529.52

  • Nasdaq (^IXIC): -279.60 (-1.81{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,133.68

  • Crude (CL=F): -$1.00 (-1.40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $70.29 a barrel

  • Gold (GC=F): -$12.10 (-0.68{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,776.20 per ounce

  • 10-year Treasury (^TNX): +2.6 bps to yield 1.4500{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

11:01 a.m. ET: Meme-stock darling AMC extends decline

Shares of AMC Entertainment Holdings Inc. (AMC) were down 2.19{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, trading at $22.73 a piece, though recouping some losses after falling as much as 11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} at the open. The company was hit hard in Monday’s sell-off along with other retail favorites, including Bed Bath & Beyond Inc. (BBY) and Tesla (TSLA).

The losses come as investors expect a rollback of pandemic-era stimulus by the Federal Reserve, putting risky assets and tech companies under pressure.

Retail investors comprise 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}-30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of trading volume, according to research from J.P. Morgan—a change from last year when these traders were seen as small-time market players.

10:17 a.m. ET: Dow turns green following tumble

Here were the main moves in markets as of 10:17 a.m. ET:

  • S&P 500 (^GSPC): -32.00 (-0.69{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,636.97

  • Dow (^DJI): +16.28 (+0.05{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 35,667.23

  • Nasdaq (^IXIC): -200.53 (-1.30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,212.75

  • Crude (CL=F): -$0.72 (-1.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $70.57 a barrel

  • Gold (GC=F): -$13.10 (-0.73{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,775.20 per ounce

  • 10-year Treasury (^TNX): +3.9 bps to yield 1.4630{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

9:30 a.m. ET: Markets open lower ahead of Fed decision

Here were the main moves in markets as of 9:30 a.m. ET:

  • S&P 500 (^GSPC): -36.88 (-0.79{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,632.09

  • Dow (^DJI): -141.06 (-0.40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 35,509.89

  • Nasdaq (^IXIC): -217.32 (-1.39{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,413.28

  • Crude (CL=F): -$0.92 (-1.29{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $70.37 a barrel

  • Gold (GC=F): -$20.90 (-1.17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,767.40 per ounce

  • 10-year Treasury (^TNX): +2.7 bps to yield 1.4510{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

9:05 a.m. ET: Stock futures tick down

Here were the main moves in futures trading Tuesday morning:

  • S&P 500 futures (ES=F): -28.50 points (-0.64{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,640.25

  • Dow futures (YM=F): -100 points (-0.28{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 35,545

  • Nasdaq futures (NQ=F): -170 points (-1.06{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,912

8:48 a.m. ET: Wholesale inflation surges 9.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Wholesale prices soared by a record 9.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in November from a year earlier, the fastest annual pace on record for the indicator and a sign inflation pressures are likely to persist well into 2022.

The Labor Department reported Tuesday that its producer price index rose 0.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in November after a 0.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} monthly gain in October. The figure, which measures inflation before it reaches consumers, marked the highest monthly reading in four months.

Food prices jumped 1.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in November after falling 0.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in October. Energy prices were up 2.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} after a 5.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} percent rise October.

7:07 a.m. ET: Stock futures mixed

Here were the main moves in markets in early trading Tuesday:

  • S&P 500 futures (ES=F): -8.25 points (-0.18{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,660.5

  • Dow futures (YM=F): +22.00 points (0.06{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 35,667

  • Nasdaq futures (NQ=F): -85.25 points (0.53{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,996.75

6:00 p.m. Monday ET: Stock futures edge higher

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

  • S&P 500 futures (ES=F): +5.50 points (0.12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,674.25

  • Dow futures (YM=F): +46.00 points (0.13{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 35,691

  • Nasdaq futures (NQ=F): +10.75 points (0.07{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 16,092.75

—

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

Posted on

Broadcom stock jumps as more than half of Street analysts hike price targets

Broadcom stock jumps as more than half of Street analysts hike price targets

Broadcom Inc. shares were on track for their best day in more than a year and a half Friday after more than half the analysts covering the chip and software company hiked their price targets on the stock following strong results and big plans to return cash to shareholders.

Broadcom
AVGO,
+8.27{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
shares were last up 7.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} at $626.36, after touching an intraday high of $644.75, and were on track for their best performing day since April 6, 2020, when they closed up 7.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} at $252.44.

Late Thursday, Broadcom not only topped Wall Street expectations for the quarter and provided a strong outlook but also it announced a $10 billion share buyback it expects to complete in a little more than a year and hiked its dividend 14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. With more than $12 billion in cash on the company’s books and growing, Broadcom Chief Executive Hock Tan told analysts, “It’s just a very logical conclusion for us to not just sit on the cash,” given a lack of recent acquisitions from a company that has been heavily into M&A over the past few years.

Back in July, talks to buy software company SAS Institute Inc. fell apart, and the company hasn’t had a big deal since it closed on the acquisition of Symantec’s enterprise security business two years ago following acquisitions of CA Inc. and Brocade in previous years.

Of the 32 analysts who cover Broadcom, 27 have buy ratings, four have hold ratings, and one has a sell rating. Of those, 18 hiked their price targets, resulting in an average target of $664.72, up from a previous $578.93, according to FactSet data.

Bernstein analyst Stacy Rasgon, who has an outperform rating and hiked his price target to $725 from $560, characterized Broadcom’s report as “What’s not to like here?”

“While enjoying solid upside in their core markets the company has high and, potentially, more stable visibility given how they are proactively managing their bookings and demand as they parse their orders to minimize risks of customer stockpiling,” Rasgon said.

“Cash generation and return is stellar, with enough [free cash flow] to still leave M&A on the table even with the sizeable 2022 buyback (a positive in our opinion as we remain partial to their acquisition strategy),” Rasgon said.

See another $10 billion buyback: Oracle’s stock jumps 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on sales, earnings beat

Citi Research analyst Christopher Danley, who has a buy rating and raised his price target to $685 from $585, on the basis that “Broadcom continues to see robust demand for its networking and storage products due to strength from the enterprise and cloud end markets.”

Susquehanna Financial analyst Christopher Rolland, who has a positive rating and a $680 price target, said that while near-term result were “as expected,” the company provided “solid guidance as Networking fires on all cylinders,” while “Cloud and Enterprise to accelerate while 5G rides the tide.”

Additionally, Rolland called the buyback and dividend hike results of how “management scours for a decent use of cash.”

Mizuho analyst Vijay Rakesh, who has a buy rating and a $665 price target, said he was surprised by the $10 billion buyback, but had expected more along the lines of $6 billion to $8 billion.

Jefferies analyst Mark Lipacis, who has a buy rating and hiked his price target to $720 from $590, said he estimates that Broadcom will be “returning greater than 100{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of net income to shareholders in 2022.” 

“AVGO trades a 35{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} discount to SOX, has solid visibility, a 2.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} div yield and is entering a capital return cycle,” Lipacis said.

Over the past 12 months, shares of Broadcom have gained 53{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. In comparison, the S&P 500 index 
SPX,
+0.95{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
has advanced 28{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, the tech-heavy Nasdaq Composite Index 
COMP,
+0.73{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
has risen 26{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, while the PHLX Semiconductor Index 
SOX,
+0.91{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
has grown 43{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} over that time.