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Stocks rise, S&P 500 looks to snap 7-week losing streak

Stocks rise, S&P 500 looks to snap 7-week losing streak

U.S. stocks rose on Friday, setting the major indexes on track to end a weeks-long losing streak after a string of more upbeat corporate results at least temporarily offset fears of a steep economic slide.

The S&P 500 gained. The blue-chip index headed for a 4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} weekly advance as of Thursday’s close, which if maintained, would mark its largest since mid-March. The S&P 500 had fallen for the seven consecutive weeks prior in its longest losing streak since 2000. The Dow Jones Industrial Average and Nasdaq each also increased on Friday.

Investors digested a fresh set of economic data Friday morning, including the latest print on core personal consumption expenditures (PCE) — the Federal Reserve’s preferred gauge of underlying inflation. These showed inflationary pressures eased only modestly in April compared to March, echoing results from the still-elevated Consumer Price Index and Producer Price Index released from earlier this month. Headline PCE increased 6.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in April over last year compared to March’s 6.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} increase, and core PCE rose by 4.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} compared to 5.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in the prior month. But separate data also showed personal spending, adjusted for inflation, accelerated in April compared to March.

Over the past several sessions, investors have weighed favorably the most recent batch of quarterly results and guidance from retailers like Macy’s (M), Nordstrom (JWN), Dollar General (DG) and Dollar Tree (DLTR). These companies largely exceeded Wall Street’s estimates, helping assuage concerns that the profit pressures reported recently by Walmart (WMT), Target (TGT) and Kohl’s (KSS) were reverberating equally across all consumer-facing firms. And outside of retail, airlines including JetBlue (JBLU) and Southwest (LUV) raised their sales guidance for the current quarter, suggesting demand remained strong for discretionary travel.

“Overall the U.S. consumer still remains in great shape. They came into these price hikes, this inflation, with cushion on their balance sheet. Certainly employment is high, so the overall U.S. consumer remains in a very strong place,” Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management, told Yahoo Finance Live.

“The big fear was that inflation was going to continue to run away and cause the Fed to have to tighten the U.S. economy into a recession,” he added. “I think we’re all starting to gradually wake up to the reality that goods spending … was pulled forward. Inventories have been rebuilt, and goods spending has caused the inflation that you’re seeing. That’s going to roll over as people move over to service sector spending.”

“And so it may feel like a recession in some parts of the economy, but other parts of the economy are going to do well,” Schutte said. “Inflation is going to fall, and the Fed is going to go a bit easier.”

However, other strategists cast doubt on the staying power of gains seen in the market so far this week, especially as inflation has shown few meaningful signs of coming down in a substantial way to date.

“This is nothing more than a bear bounce in our opinion. When you look at these bounces we’ve had, they’ve been on very light volume, there’s not a lot of conviction,” Eddie Ghabour, co-founder and managing partner of Key Advisors Group, told Yahoo Finance Live. “The data that we’re getting now that’s been causing this sell-off, remember, is first-quarter data. The data coming in the second quarter is going to be worse than the first quarter. And we’re not going to get that news until July … So I think we’re going to have a very treacherous market in the next few months.”

—

10:06 a.m. ET: Consumer sentiment weakened in late May to lowest since 2011

Consumer sentiment fell further in late May, largely on account of concerns around inflation and business conditions in the near-term.

The University of Michigan’s final monthly sentiment index decreased to 58.4, which was downwardly revised from the 59.1 previously reported for the month. Subindices tracking consumers’ views on current conditions and future expectations were each also slightly downwardly revised, and one-year inflation expectations were little changed at 5.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

The latest sentiment drop “was largely driven by continued negative views on current buying conditions for houses and durables, as well as consumers’ future outlook for the economy, primarily due to concerns over inflation,” Joanne Hsu, Surveys of Consumers director, wrote in a statement. “At the same time, consumers expressed less pessimism over future prospects for their personal finances than over future business conditions.”

“Looking into the long term, a majority of consumers expected their financial situation to improve over the next five years; this share is essentially unchanged during 2022,” Hsu added. “A stable outlook for personal finances may currently support consumer spending. Still, persistently negative views of the economy may come to dominate personal factors in influencing consumer behavior in the future.”

—

9:32 a.m. ET: Stocks open higher

Here were the main moves in markets as of 9:32 a.m. ET:

  • S&P 500 (^GSPC): +32.86 (+0.81{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,090.70

  • Dow (^DJI): +56.27 (+0.17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 32,693.46

  • Nasdaq (^IXIC): +165.04 (+1.41{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 11,905.69

  • Crude (CL=F): -$0.12 (-0.11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $113.97 a barrel

  • Gold (GC=F): +$10.30 (+0.56{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,864.20 per ounce

  • 10-year Treasury (^TNX): -3.1 bps to yield 2.7250{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

8:58 a.m. ET: Goods trade deficit narrows more than expected in April after record reading in March

The U.S. goods trade gap declined more than anticipated in April after reaching an all-time high of nearly $126 billion in March.

The advance goods trade balance showed a deficit of $105.9 for the U.S. in April, the Commerce Department said Friday. This followed a gap of $125.9 billion in March, which was upwardly revised from $125.3 billion last month.

The print suggests trade produced slightly less of a drag on the U.S. economy at the start of the second quarter compared to the first. In the first quarter, net exports shaved 3.23 percentage points off headline U.S. gross domestic product (GDP). GDP fell at a 1.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} annualized rate in the first three months of the year.

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8:42 a.m. ET: Real personal spending accelerates in April, while saving rate slides to lowest since 2008

U.S. consumers kept spending last month even as inflation remained elevated, as one of the key contributors to U.S. economic activity held up into the spring. However, the personal saving rate dwindled to the lowest level in over a decade, raising some concerns over how much longer spending might manage to prop up the economy.

Real personal spending rose 0.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} month-on-month in April, the Bureau of Economic said Friday, accelerated from March’s 0.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} rise. Unadjusted for inflation, personal spending was up 0.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, exceeding consensus economist expectations for a 0.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} increase, according to Bloomberg data. This metric had risen by 1.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in March.

Personal income, however, decelerated slightly last month, rising 0.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} after March’s 0.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} increase. And the personal saving rate, or proportion of disposable personal income set aside to savings, fell to 4.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from March’s 5.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, reaching the lowest level since 2008. After soaring during the pandemic, the saving rate has now come in well below the average of 2019 before the outbreak, when the saving rate had averaged over 7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

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8:38 a.m. ET: Inflation eases just slightly in April as PCE rises 6.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} year-over-year

Inflation as measured by the Bureau of Economic Analysis’ personal consumption expenditures (PCE) index eased only modestly in April compared to March, with fast-rising prices showing few signs of slowing down across the U.S. economy.

The broadest measure of PCE rose 0.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in April month-on-month, which matched consensus economist expectations, according to Bloomberg data. This compared to a 0.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} monthly increase in March. On a year-over-year basis, however, PCE still soared by 6.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, coming in slightly hotter than expected and moderating only slightly from March’s 6.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} annual rise.

Core PCE, which excludes volatile food and energy prices, also remained hot and rose 4.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in April over last year. That matched estimates, and followed a 5.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} rise in March. February’s reading of 5.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} had been the highest since 1983.

—

7:23 a.m. ET: Stock futures rise as indexes look to log weekly gains

Here’s where markets were trading Friday morning:

  • S&P 500 futures (ES=F): +11 points (+0.27{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,066.75

  • Dow futures (YM=F): +26 points (+0.08{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 32,626.00

  • Nasdaq futures (NQ=F): +54.25 points (+0.44{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 12,333.50

  • Crude (CL=F): -$0.46 (-0.40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $113.63

  • Gold (GC=F): +$8.80 (+0.47{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,862.70 per ounce

  • 10-year Treasury (^TNX): -3.3 bps to yield 2.725{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

NEW YORK, NEW YORK - MAY 23: Traders work on the floor of the New York Stock Exchange (NYSE) on May 23, 2022 in New York City. After a week of steep losses, markets were up in Monday morning trading. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – MAY 23: Traders work on the floor of the New York Stock Exchange (NYSE) on May 23, 2022 in New York City. After a week of steep losses, markets were up in Monday morning trading. (Photo by Spencer Platt/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 mixed as market struggles to rebound from sell-off

Stocks open mixed as market struggles to rebound from sell-off

U.S. stocks rose Thursday morning as markets remain on track to snap a 7-week losing streak.

The S&P 500 climbed as much as 1.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in early trading, and the Dow Jones Industrial Average gained over 400 points, or 1.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The Nasdaq Composite rose 1.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} higher as the index attempts to claw its way out of bear market territory.

A rebound in retail earnings spurred markets early in the session, with Macy’s (M) rising as much as 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in early trading after the retail giant raised its profit outlook in an upside surprise to investors weighing a slew of downward forecast revisions from peers.

Shares of discount retailers Dollar Tree (DLTR) and Dollar General (DG) were also up more than 13{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} after both companies raised forecasts on Thursday.

Last week, several retailers, including Walmart Inc. (WMT), have recently slashed their outlooks and warned inflation was likely to weigh on profits.

The moves build on a brief reprieve for equities, which closed higher Wednesday amid a streak of day-to day gyrations. In the first 99 trading days of the year as of Wednesday’s close, the S&P 500 was down 17.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, marking its fourth worst start to a year in history, per data from Compound Capital Advisors.

Investors also digested a bevy of economic releases Thursday morning, including a revised estimate on U.S. GDP that showed economic activity fell at a 1.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} annualized rate in the first three months of 2022, upwardly revised from an initial estimate of 1.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Bloomberg economists had anticipated the second reading to come in at 1.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Meanwhile, applications for unemployment insurance ticked back down in the latest weekly data to 210,000 in the week ended May 21.

Chip designer Nvidia Corp. (NVDA) joined the growing list of companies reporting weaker second-quarter forecasts and alluding to economic constraints ahead. The company’s stock fell in extended trading Wednesday after Nvidia warned current-quarter revenue was likely to come in $500 million lower due to headwinds from Russia’s war in Ukraine and COVID lockdowns in China. Nvidia shares pared these losses early Thursday, rising 0.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} about a half hour into the trading session.

Software company Snowflake (SNOW) also cut its forecast late Wednesday, and shares of the company were down as much as 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in early trading on Thursday.

Recent trading sessions have seen sharp drawdowns in some big-name stocks after earnings reports that affirmed investor worries about the impact of inflation on corporate margins. Earlier this week social media giant Snap Inc. (SNAP) tumbled 43{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in its biggest-one day drop on record, spurring a sell-off of other digital ad-dependent stocks that dragged the Nasdaq down to its lowest close since November 2020.

Last week, the downswing occurred in retail after Walmart and Target (TGT) set off the recent trend of dramatic pullbacks in individual names following weaker earnings forecasts. According to data from FactSet, S&P 500 companies reporting results for the first quarter have seen the largest negative price reaction to positive earnings per share surprises since 2011.

“Whether it’s today or tomorrow, it does feel like we’re starting to digest what is a seemingly large amount of bad news,” Acorns Chief Investment Officer Seth Wunder told Yahoo Finance Live on Wednesday. “The key thing is to get data that eases some of the pressure off of the Federal Reserve.”

The pickup in disappointing guidance has kept Wall Street on edge for signs the central bank’s interest rate hiking plans will be effective in bringing prices back down to healthier levels. Minutes released Wednesday from the Fed’s May policy-setting meeting indicated the majority of officials were strongly committed to rate hikes of 50 basis points at each of the next two meetings in June and July. So far this year, policymakers bumped short-term borrowing costs by 50 basis points earlier this month and 25 basis points in April.

“Though market participants have feared this stance, it should be noted that the Fed has in excess of $100 billion is securities maturing on its balance sheet coming up, so the resulting asset purchases can help negate growth concerns this summer,” Comerica Wealth Management Chief Investment Officer John Lynch said in an emailed note. “It’s actually a perfect time for the Fed to raise aggressively and send a message to markets that they’re serious about inflation without sending growth into a tailspin.”

—

10:17 a.m. ET: Crypto under pressure as tech stocks gain

The start of Thursday’s trading session has been raucous, with the Nasdaq leading the charge up nearly 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} despite both Nvidia and Snowflake giving investors yet another downbeat forecast from former tech high-flyers last night.

Notably, however, crypto was not catching the same bid as the riskiest pockets of the market were rallying.

Bitcoin (BTC-USD) traded back below $29,000 at one point on Thursday morning, while Ethereum (ETH-USD) was down in excess of 8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, falling below $1,800 in morning trade on Thursday.

As we’re drafting this update, there’s a bit of a rebound happening in the crypto space, but this divergence between stocks and crypto — if it holds — is certainly something to watch.

—Myles Udland, senior markets editor at Yahoo Finance

—

9:34 a.m. ET: Stocks open mixed as market struggles to rebound from losses

Here were the main moves in markets during the opening bell on Thursday:

  • S&P 500 futures (ES=F): +15.75 (+0.40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,992.50

  • Dow futures (YM=F): +134.00 (+0.42{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 32,210.00

  • Nasdaq futures (NQ=F): +20.00 (+17.00{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 11,962.25

  • Crude (CL=F): +$0.88 (+0.80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $111.21

  • Gold (GC=F): -$2.60 (-0.14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,843.70 per ounce

  • 10-year Treasury (^TNX): -1.1 bps to yield 2.7490{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

9:07 a.m. ET: US GDP contracted at slightly faster rate in the first quarter

U.S. gross domestic product fell at a 1.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} annualized rate in the first three months of 2022, according to a revised estimate out of Washington.

The nation’s GDP – the broadest measure of economic activity – was initially believed to logged a 1.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} contraction between January and March. The second reading came in higher than the revised contraction of 1.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Bloomberg economists had anticipated.

In the fourth quarter, economy grew at a robust 6.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} pace. The slowdown comes amid lingering supply chain imbalances, inflation, and disruptions from war in Eastern Europe that weighed on growth.

—

8:58 a.m. ET: US jobless claims fall after climbing unexpectedly last week

Applications for unemployment insurance ticked back down in the latest weekly data, underscoring continued strength in the labor market despite higher inflation and worries of an economic slowdown.

The Labor Department’s latest weekly jobless claims report showed 210,000 claims were filed in the week ended May 21, coming in below the 215,000 economists surveyed by Bloomberg had expected. Last week, filings unexpectedly climbed to 218,000, the highest level since January.

Weekly claims continued to hover near a multi-decade low. However, several retailers, including Walmart Inc. (WMT), have recently slashed their outlooks and warned inflation was likely to weigh on profits, raising concerns among market participants that layoffs could be underway.

“Major retailers are reporting margin pressure and softer consumer demand as inflation erodes discretionary spending power and consumers redirect spending dollars from goods to services,” Comerica Chief Economist Bill Adams said in a recent note. “This will lead to slower job growth in the retail and e-commerce industries in the rest of 2022.”

“The stock market selloff could dampen business sentiment and make some businesses more cautious about hiring, especially businesses that are cash flow negative and rely on investors’ money to fund operations like many startups,” he added.

 

—

7:22 a.m. ET: Futures jump as the indexes claw back from sell-off

Here’s where stock futures were in pre-market trading Thursday:

  • S&P 500 futures (ES=F): +15.75 (+0.40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,992.50

  • Dow futures (YM=F): +134.00 (+0.42{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 32,210.00

  • Nasdaq futures (NQ=F): +20.00 (+17.00{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 11,962.25

  • Crude (CL=F): +$0.88 (+0.80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $111.21

  • Gold (GC=F): -$2.60 (-0.14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,843.70 per ounce

  • 10-year Treasury (^TNX): -1.1 bps to yield 2.7490{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

A person enters the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., May 19, 2022. REUTERS/Andrew Kelly

A person enters the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., May 19, 2022. REUTERS/Andrew Kelly

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

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Stocks drift higher as traders await Fed meeting minutes

Stocks drift higher as traders await Fed meeting minutes

U.S. stocks rose slightly on Wednesday, steadying after recent selling sparked amid growing concerns about the impact of inflation on company profits and the broader economy. Traders also awaited the Federal Reserve’s meeting minutes later in the day, which may help further clarify the path of monetary policy in the near-term.

The S&P 500 edged up after Tuesday’s renewed rout. The Dow and Nasdaq also ticked higher. Treasury yields declined on the long end of the curve, and the benchmark 10-year yield fell to hold just above 2.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Investors this week have eyed a growing list of companies citing the effects that inflation have had and will have on results going forward. Retailers including from Walmart and Target last week to Dick’s Sporting Goods (DKS) and Abercrombie & Fitch (ANF) this week slashed their earnings forecasts for the year as the companies absorbed rising goods and transportation costs. And elsewhere, Snap (SNAP) warned earlier this week that it would post weaker-than-expected sales and profit results this year as the macroeconomic environment “deteriorated further and faster than anticipated.” This was taken as a harbinger of softer results for a bevy of ad-driven tech stocks, sending the Nasdaq Composite to its lowest close since Nov. 2020 on Tuesday.

As the grim company guidance piles up, Wall Street is looking for signs that the Federal Reserve’s interest rate hikes and monetary policy tightening will achieve bringing down inflationary pressures. The Fed is set to release the minutes from its early May meeting Wednesday afternoon, which will offer additional details about how policymakers have been thinking of adjusting policy further to rein in rising prices. Fed Chair Jerome Powell earlier this month suggested additional 50 basis point rate hikes would likely be appropriate at the Fed’s next two meetings.

“The challenge right now is we’re in this new chapter of the inflation story. If you’ll recall, last year it started with whether it’s transitory — turns out, it wasn’t. Then it became about the Fed at the end of last year and earlier this year, whether or not they would tighten significantly. And they did, and now all that’s priced in,” James Liu Clearnomics founder and CEO, told Yahoo Finance Live. “And now what the market is looking at is are basically the fundamentals around how inflation affects corporate profitability and consumer demand.”

And beyond the domestic concerns, a myriad of international concerns — from Russia’s war in Ukraine, to China’s ongoing COVID outbreak — have further infused volatility into the market.

“The Fed can’t really do anything about what’s going on between Russia and Ukraine, they can’t really do anything about China’s COVID zero policies … and a lot of traders are starting to get concerned,” Shawn Cruz, TD Ameritrade head trading strategist, told Yahoo Finance Live.

“The way the market to me is reacting to that, is one, there’s de-leveraging going on. There are some liquidation events out there as well, and that is one of those ‘selling begets more selling’ type of environments. And then the other one is, there’s just not enough confidence out there to come in there and meaningfully put money back to work,” he added. “Once you start to see leverage start going back up, cash coming in from the sidelines, that to me would be an indication that there is at least a little bit more certainty in the outlook for a lot of these people on the sidelines to come back in.”

—

9:31 a.m. ET: Stocks open lower before shaking off losses

Here were the main moves in markets as of 9:31 a.m. ET:

  • S&P 500 (^GSPC): -9.53 (-0.24{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,931.95

  • Dow (^DJI): -114.27 (-0.36{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 31,814.35

  • Nasdaq (^IXIC): -22.24 (-0.20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 11,242.21

  • Crude (CL=F): +$0.89 (+0.81{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $110.66 a barrel

  • Gold (GC=F): -$13.90 (-0.75{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,851.50 per ounce

  • 10-year Treasury (^TNX): -2.6 bps to yield 2.7340{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

9:12 a.m. ET: Durable goods orders disappoint in April

U.S. durable goods orders decelerated in April and were downwardly revised in March, offering an at least early sign that businesses may be pulling back on investments as economic uncertainties mount.

Orders for durable goods, or manufactured products intended to last at least three years, rose by 0.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in April compared to March, the Commerce Department said Wednesday. This came in below the 0.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} rate consensus economists were expecting, according to Bloomberg data. In March, durable goods orders rose by 0.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, with this rate revised down from the 1.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} previously reported.

Non-defense capital goods orders excluding aircraft also missed expectations, rising by 0.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in April versus the 0.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} anticipated. This metric rose by 1.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in March, and serves as a closely watched proxy for business investment. Still, non-defense capital goods shipments excluding aircraft, which factors into GDP, rose by a better-than-expected 0.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} last month.

“It’s entirely possible that the recent slowing is nothing more than a temporary reaction to the spike in energy prices; firms might be waiting to see how consumers respond,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, wrote in an email about the report. “So far, we see no evidence of any hit — housing excepted — but we also can’t rule out the idea higher rates are directly causing some capex [capital expenditures] to be deferred, even though firms are sitting on huge piles of cash accumulated during the pandemic.”

“For now, a decent increase in capital spending on equipment in the second quarter seems assured, given the lags from previous strength in orders, but the outlook for H2 has become a bit more cloudy,” he added.

—

7:55 a.m. ET: Dick’s Sporting Goods becomes latest retailer to slash full-year outlook given ‘evolving macroeconomic conditions’

Dick’s Sporting Goods shares sank by more than 14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Wednesday morning after the retailer became one of the latest to lower its full-year earnings and sales guidance as economic uncertainty resurged.

The sporting goods retailer said it now sees adjusted earnings totaling between $9.15 and $11.70 per share for the 2023 fiscal year, with this range coming in well below the $11.70 to $13.10 a share seen previously. Comparable store sales will likely fall between 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} this year, the company added, compared to a prior outlook for sales to come in between unchanged and down 4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Dick’s Sporting Goods said it updated its outlook “to reflect the impact of evolving macroeconomic conditions,” according to its earnings release Wednesday morning.

Following the release, the stock was on track to post a sixth straight day of losses, or its longest losing streak since early Dec. 2021, as shares fell in sympathy with other major retailers over the past week.

—

7:23 a.m. ET: Stock futures edge lower

Here’s where markets were trading Wednesday morning:

  • S&P 500 futures (ES=F): -5.25 points (-0.13{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,935.25

  • Dow futures (YM=F): -55 points (-0.17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 31,825.00

  • Nasdaq futures (NQ=F): -9.5 points (-0.08{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 11,761.50

  • Crude (CL=F): +$1.47 (+1.34{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $111.24

  • Gold (GC=F): -$14.10 (-0.76{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,851.30 per ounce

  • 10-year Treasury (^TNX): -2.6 bps to yield 2.734{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

NEW YORK, NEW YORK - MAY 23: Traders work on the floor of the New York Stock Exchange (NYSE) on May 23, 2022 in New York City. After a week of steep losses, markets were up in Monday morning trading. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – MAY 23: Traders work on the floor of the New York Stock Exchange (NYSE) on May 23, 2022 in New York City. After a week of steep losses, markets were up in Monday morning trading. (Photo by Spencer Platt/Getty Images)

—

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

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Stocks extend losses after Snap outlook spurs sell-off in tech shares

Stocks extend losses after Snap outlook spurs sell-off in tech shares

U.S. stocks were mostly lower Tuesday after social media giant Snap Inc. (SNAP) logged its biggest one-day drop on record and dragged down shares of technology peers.

The Nasdaq Composite tumbled 2.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to its lowest close since November 2020 following an economic warning from the social media platform that sent the company’s stock down 43{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and spurred a sell-off in the broader tech sector. The S&P 500 fell 0.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, placing the index back on track toward a bear market following a brief reprieve to start the week. The Dow Jones Industrial Average gained 50 points after reversing earlier losses in the final hour of trading.

The downturn comes after Snap Inc. CEO Evan Spiegel slashed the company’s forecast, citing rising inflation and interest rates, supply chain constraints and labor disruptions.

Snap’s fall also spurred a sell-off in technology peers. Shares of Meta Platforms (FB) fell 7.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, and shares of Alphabet (GOOG) declined 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to a 52-week low.

The moves extend a streak of wild swings in equities following a brief reprieve Monday but build on a broader downward trend amid months of selling on Wall Street. Monday’s close marked only the 13th time of 98 trading days this year the S&P 500 closed in positive territory, according to data from Bespoke Investment Group.

The social media giant is the latest among a growing docket of U.S. companies downgrading their outlooks over concerns macroeconomic pressures are poised to weigh on margins. Last week, a bevy of disappointing earnings from major retailers affirmed fears that inflation and continued supply chain issues are hitting corporate balance sheets.

“There was bound to be some payback from the pandemic-induced profit surge a lot of companies experienced, but that payback might be bigger than originally thought,” Brian Jacobsen, senior investment strategist at Allspring Global Investments said in an emailed note. “Businesses have to deal with higher input costs, consumers crimped by high prices, and shifting spending patterns.”

During the first quarter earnings season, 338 of 460 companies in the S&P 500 that have reported results so far cited the term “supply chain” during calls with investors – the third highest number of times since at least 2010, research from FactSet indicated. With results due out this week from consumer names including Macy’s (M), Dick’s Sporting Goods (DKS), and Ulta Beauty (ULTA), Wall Street is bracing for more bad news.

On the economic front, sales of new U.S. homes dropped by the most in nearly nine years to the lowest print since the start of the COVID-19 pandemic. The decline comes as elevated construction costs and rising mortgage rates weigh on affordability.

More data out of Washington is in the queue for investors through Friday, with a second estimate of first-quarter U.S. GDP due out later this week, along with a fresh read on monthly personal consumption expenditures (PCE), the Federal Reserve’s preferred inflation measure.

—

4:00 p.m. ET: S&P falls 0.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, Dow gains 50 points, Nasdaq tumbles 2.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Here were the main moves in markets as of 4:00 p.m. ET:

  • S&P 500 (^GSPC): -31.78 (-0.80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,941.97

  • Dow (^DJI): +50.82 (+0.16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 31,931.06

  • Nasdaq (^IXIC): -270.83 (-2.35{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 11,264.45

  • Crude (CL=F): -$0.10 (-0.09{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $110.19 a barrel

  • Gold (GC=F): +$17.10 (+0.93{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,864.90 per ounce

  • 10-year Treasury (^TNX): -9.9 bps to yield 2.7600{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

1:20 p.m. ET: S&P falls 1.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, Dow sheds 300 points, Nasdaq tumbles 3.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Here were the main moves in markets as of 1:20 p.m. ET:

  • S&P 500 (^GSPC): -74.69 (-1.88{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,899.06

  • Dow (^DJI): -298.30 (-0.94{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 31,581.94

  • Nasdaq (^IXIC): -371.37 (-3.22{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 11,163.91

  • Crude (CL=F): -$0.63 (-0.57{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $109.66 a barrel

  • Gold (GC=F): +$16.80 (+0.91{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,864.60 per ounce

  • 10-year Treasury (^TNX): -12.4 bps to yield 2.7350{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

10:58 a.m. ET: New home sales fall to lowest since early 2020

Sales of new U.S. homes dropped by the most in nearly nine years to the lowest print since the start of the COVID-19 pandemic. The decline comes as elevated construction costs and rising mortgage rates weigh on affordability.

New home sales in the United States sank 16.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} month-over-month to a seasonally adjusted annual rate of 591,000 in April of 2022. The figure marks the lowest print in two years and comes in below the 750,000 economists surveyed by Bloomberg had anticipated.

The pace of sales in March was also downwardly revised to 709,000 units from the 763,000 units previously reported.

“The macroeconomic environment has deteriorated faster than we thought just a month ago with new home sales tumbling lower under the weight of higher financing costs and home valuations where even the cost of the gas home buyers put in the car to tour new homes is soaring,” FWDBONDS chief economist Christopher Rupkey said in a note.

—

9:34 a.m. ET: Stocks resume losses as sharp selling continues on Wall Street

Here were the main moves in markets at the start of trading Tuesday:

  • S&P 500 (^GSPC): -40.20 (-1.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,933.55

  • Dow (^DJI): -141.29 (-0.44{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 31,738.95

  • Nasdaq (^IXIC): -209.61 (-1.82{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 11,325.66

  • Crude (CL=F): -$0.20 (-0.18{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $110.09 a barrel

  • Gold (GC=F): +$11.50 (+0.62{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,859.30 per ounce

  • 10-year Treasury (^TNX): -4.9 bps to yield 2.8100{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

8:30 a.m. ET: Abercrombie shares are tanking after earnings

Abercrombie & Fitch (ANF) shares were down as much as 25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in pre-market trading after the company slashed its full year forecast in its latest quarterly report.

For the full year 2022, the company now expects sales growth will fall within a range of flat to up just 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, down from an earlier forecast for sales growth of 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}-4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. In cutting its forecast, the company cited the “adverse impact from foreign currency and an assumed inflationary impact on consumer demand.”

After a 4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} increase in sales during the first quarter, ANF expects Q2 sales will fall in the “low-single-digits” compared to the prior year. The company attributed this decline to the impact from COVID-related lockdowns in China as well as the negative effect inflation is having on consumer habits.

“Looking forward, we expect higher costs to remain a headwind through at least year-end,” CEO Fran Horowitz said in the company’s earnings release.

“We expect freight relief in the fourth quarter as we anniversary increased air usage last year due to the Vietnam shutdown. We will continue to manage expenses tightly and are committed to finding opportunities to offset these costs while protecting strategic investments in marketing, technology and our customer experience, which should drive sustained, long-term sales growth.”

—

7:17 a.m. ET: Futures point to continued losses after Snap slashes forecast

Here’s where stock futures were in pre-market trading Tuesday:

  • S&P 500 futures (ES=F): -41.00 (-1.03{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,930.75

  • Dow futures (YM=F): -200.00 (-0.63{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 31,639.00

  • Nasdaq futures (NQ=F): -195.50 (-1.62{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 11,839.75

  • Crude (CL=F): +$0.41 (+0.37{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $110.70

  • Gold (GC=F): +$8.50 (+0.46{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,856.30 per ounce

  • 10-year Treasury (^TNX): +7.2 bps to yield 2.8590{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

NEW YORK, NEW YORK - MAY 23: People walk by the New York Stock Exchange (NYSE) on May 23, 2022 in New York City. After a week of steep losses, markets were up in Monday morning trading. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – MAY 23: People walk by the New York Stock Exchange (NYSE) on May 23, 2022 in New York City. After a week of steep losses, markets were up in Monday morning trading. (Photo by Spencer Platt/Getty Images)

—

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

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Latest Economy, Stocks and Business News for May 23, 2022

Latest Economy, Stocks and Business News for May 23, 2022
Credit…Andrew Testa for The New York Periods

Google Maps contract workers who are demanded to return to their place of work in Washington Point out a short while ago circulated a petition to maintain performing from residence considering that some simply cannot manage their commutes, presenting an additional problem to Google’s strategy to refill workplaces and restore campus existence.

The difficulty has an effect on a lot more than 200 personnel who are used by the outsourcing agency Cognizant Technology Methods, which mandated that they operate in an place of work in Bothell five times a week starting on June 6. The staff participate in an critical part updating routes and places on Google Maps, a provider made use of by more than a person billion people today a month.

About 60 percent of the 200 employees signed the petition. They demanded that managers suspend the return-to-business office timeline and initially tackle employees’ money, well being and little one care issues.

“Gas is all-around $5 per gallon at the moment, and numerous of us in the business office are not capable to afford to pay for to live close to the place of work due to our small salaries and the higher value of housing in Bothell,” the Cognizant staff wrote. The petition was supported by the Alphabet Staff Union, which has far more than 900 members employed by Google’s mum or dad firm, Alphabet, and its suppliers.

Entire-time Google staff with office environment work have been advised to appear in a few times a 7 days. In interviews, the Cognizant personnel named for the very same flexibility. Beginning June 6, they will no for a longer period have accessibility to get the job done methods from home.

The guidelines spotlight disparities among Google’s immediate staff and contractors. Google is approximated to have properly more than 100,000 temporary, seller and agreement personnel who devote their time on Google tasks but formally perform for other organizations. Google does not disclose the number.

Cognizant stated in a statement that its return-to-place of work coverage depended on the variety of do the job staff did and the demands of its clients. “The well being and basic safety of our workers continues to be our top rated precedence, and we need our employees to be vaccinated to return to our workplaces in the United States,” Jeff DeMarrais, Cognizant’s chief communications officer, wrote in an electronic mail.

Courtenay Mencini, a spokeswoman for Google, claimed in a assertion that the well being of its group, including deal employees, was a organization precedence. Google gave its suppliers in Washington Condition 90 days’ discover for staff to return to the office, and these suppliers made the decision how to execute that plan, she mentioned.

Credit history…Christie Hemm Klok for The New York Instances

The contractors in Washington mentioned most of them made between $16 and $28 an hour, far considerably less than normal complete-time Google workers. Cognizant supervisors denied their requests for gasoline playing cards or other monetary offsets. They stated they hadn’t been supplied Google’s non-public bus companies — a well-liked perk in Silicon Valley — to simplicity their commutes.

Tyler Brown, a maps operator who was employed through the pandemic, approximated that he would have to spend $280 of his $1,000 biweekly fork out on fuel to push his 2006 Toyota Sienna to the business, 73 miles away from his home in Olympia, Wash.

“I’m acquiring paid $19 an hour,” Mr. Brown said. “It doesn’t make feeling for me to continue to do” the occupation. He strategies to give up if the return-to-office environment approach goes in advance.

William Houser, a geospatial information specialist, also reported he was wary of a very long, costly commute. His 100-mile round trip each individual working day from Puyallup, Wash., would choose much more than 4 hours overall. He commenced the occupation in April 2021, 13 months immediately after Google shut its workplaces.

The Cognizant staff expressed other concerns. They explained managers had offered them 40 days’ notice to perform in human being, not a promised 60-day minimum. That means a lot less time to uncover boy or girl care or go. And they are afraid of contracting Covid-19 in the business office.

That is of specific problem to Shelby Hunter, a policy trainer who has had four lung functions. He claimed his bosses had advised him that the return-to-business strategy experienced no clinical exemptions.

“I like figuring out the perform I do can make a variation,” Mr. Hunter explained. “It just feels like I have been disrespected.”

Google, which expanded its office footprint throughout the coronavirus pandemic, has utilised perks like no cost electric powered scooters and a live performance by the pop star Lizzo to entice 164,000 employees to return to campuses. The lookup huge permitted 85 p.c of employees’ requests to perform remotely or transfer to a various place past 12 months.

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Stocks rise to recover from bear market brink

Stocks rise to recover from bear market brink

U.S. stocks rose Monday, with equities coming off a seven-week losing streak on more solid footing as investors shook off some recent volatility and digested fresh trade-related remarks from the Biden administration.

The S&P 500 rose by more than 0.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} just after market open . The index had closed out Friday’s session flat on the day but down 18.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from its Jan. 5 record closing high to come within striking distance of a bear market, defined once an index closes at least 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from a recent all-time closing high.

The Dow gained more than 200 points, or 0.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, and the Nasdaq also increased shortly after market open. The moves to the upside came after President Joe Biden said he was considering easing tariffs on Chinese goods that had been imposed during the prior administration. Biden’s remarks, made during a news conference with Japanese Prime Minister Fumio Kishida, came in turn after Treasury Secretary Janet Yellen said last week that she was encouraging the Biden administration to remove the tariffs she said imposed “more harm on consumers and business” in the U.S.

The possibility of some easing of tariffs while the U.S. economy grapples with decades-high rates of inflation helped at least temporarily boost risk assets that had been battered in recent weeks by jitters over rising prices, more aggressive Federal Reserve monetary policies and international concerns in Ukraine and China. As of Friday, the S&P 500 had also posted a seventh consecutive weekly loss last week in its longest losing streak since 2001. And at its worst point on Friday, the index sank as much as 20.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from its January record high to trade in bear market territory.

Traders work on the floor during the opening bell of the New York Stock Exchange in New York City on May 16, 2022. - US stocks were off to a downbeat start Monday following the rally in the prior session, as concerns about growth in the domestic and global economies continue. (Photo by TIMOTHY A. CLARY / AFP) (Photo by TIMOTHY A. CLARY/AFP via Getty Images)

Traders work on the floor during the opening bell of the New York Stock Exchange in New York City on May 16, 2022. – US stocks were off to a downbeat start Monday following the rally in the prior session, as concerns about growth in the domestic and global economies continue. (Photo by TIMOTHY A. CLARY / AFP) (Photo by TIMOTHY A. CLARY/AFP via Getty Images)

Since World War II, there have been 12 formal bear markets for the S&P 500, and 17 including “near bear markets,” or periods when the index fell by more than 19{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, according to LPL Financial Chief Market Strategist Ryan Detrick. Of these, the average drop was about 29.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, and lasted an average of 11.4 months.

However, when bear markets coincide with recessions, they tend to be worse, falling 34.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on average and lasting 15 months, Detrick added. A recession tends to be considered after two consecutive quarters of negative GDP (gross domestic product) growth.

Traders are set to receive the second estimate of first-quarter U.S. GDP later this week, which was reported last month in the first estimate to have contracted at a 1.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} annualized rate. More recent economic data have shown some pockets of strength, however, with retail sales and some manufacturing data coming in strong, while employment data have started to soften.

“I do think that the economy is better right now than the stock market is telling you,” Rhys Williams, Spouting Rock Asset Management Chief Strategist, told Yahoo Finance Live on Friday. “And my guess is we’re going to muddle through on both stocks and bonds over the summertime.”

—

9:32 a.m. ET: Stocks open higher

Here were the main moves in markets as of 9:31 a.m. ET:

  • S&P 500 (^GSPC): +32.49 (+0.83{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,933.85

  • Dow (^DJI): Open to 31,261.90

  • Nasdaq (^IXIC): +48.89 (+0.43{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 11,403.51

  • Crude (CL=F): -$0.33 (-0.30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $109.95 a barrel

  • Gold (GC=F): +$10.30 (+0.56{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,852.40 per ounce

  • 10-year Treasury (^TNX): +5.2 bps to yield 2.8390{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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7:23 a.m. ET: Stock futures gain more than 1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

  • S&P 500 futures (ES=F): +47.5 points (+1.22{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,947.00

  • Dow futures (YM=F): +346.00 points (+1.11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 31,559.00

  • Nasdaq futures (NQ=F): +127.25 points (+1.07{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 11,968.00

  • Crude (CL=F): +$1.08 (+0.98{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $111.36

  • Gold (GC=F): +$16.90 (+0.92{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,859.00 per ounce

  • 10-year Treasury (^TNX): +4.6 bps to yield 2.833{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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

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