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February 14, 2022

Stocks drop as Russia-Ukraine conflict concerns rise

Stocks sank Monday afternoon as investors eyed the escalating threat of Russian invasion in Ukraine alongside ongoing concerns over inflation and an aggressive move toward policy tightening by the Federal Reserve.

The S&P 500 dropped to extend losses after last week’s roller-coaster sessions on Thursday and Friday. Treasury yields rose and the 10-year yield hovered back near 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The latest leg lower came after the Wall Street Journal reported the U.S. was closing its embassy in Kyiv and destroying networking and computer equipment, with concerns over a Russian military attack mounting.

Markets have been whipsawed in recent sessions by conflicting signals over the immediacy of a potential Russian invasion of Ukraine. Earlier, Russia’s Foreign Minister Sergey Lavrov said he was urging Russian President Vladimir Putin to continue diplomatic talks. This came less than a day after U.S. officials signaled Russia could be nearing the launch of an invasion of Ukraine as soon as this week. National Security adviser Jake Sullivan told CNN on Sunday that “a major military action could begin by Russia in Ukraine any day now,” though the U.S. was still hoping for a diplomatic resolution. And these remarks in turn came after President Joe Biden held a phone call with Vladimir Putin on Saturday warning that the U.S. and its allies would “impose swift and severe costs” on Russia in the event of a military attack in Ukraine.

Oil prices rose to build on gains after a recent run-up as Russia-Ukraine tensions remained in focus. West Texas intermediate crude oil futures (CL=F) jumped above $95 per barrel for the first time since 2014. U.S. crude prices have already jumped more than 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the year-to-date. Brent crude (BZ=F), the international standard, drifted above $95 per barrel. With oil prices elevated, the S&P 500 energy sector has far outperformed the other major S&P 500 sectors for the year-to-date, climbing more than 26{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} versus the broader market’s 7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} drop.

Further upside in energy prices in response to the Russia and Ukraine conflict would depend on the timing of any attack and the contours of any U.S. response toward Russia, one of the world’s key oil exporters, some analysts noted.

“It all comes down to how much of their supply is actually impacted by an invasion, and that’s not entirely clear. There are estimates that are saying crude could go to $120 a barrel if we get an invasion,” Rebecca Babin, CIBC Private Wealth U.S. senior energy trader, told Yahoo Finance Live about Brent crude prices. “I say we top out at probably just around $100 because I do think that there will not be as strict of sanctions as the market fears because ultimately, that hurts the US and our allies almost as much as it hurts Russia.”

For equity markets, however, the geopolitical conflict may compound volatility already stirred up by investors jittery over the potential for the Fed to tighten monetary policy aggressively in the near-term. With inflation running at a 40-year high and the labor market on solid ground, investors are largely expecting the Fed to raise benchmark interest rates between five and seven times this year.

Conflict in Ukraine “could actually build the worst-case scenario for the Fed, in the sense that you could see energy prices move higher, [and] if you start to see gasoline prices go north of $4 per gallon, I think that could crimp consumer spending,” Larry Adam, Raymond James chief investment officer, told Yahoo Finance Live. “And then obviously, if energy prices go higher, that could lead to further inflationary pressures. And that could be a double-edged sword that the Fed could be challenged by.”

Later this week, investors are set to receive another batch of earnings results from companies including Airbnb (ABNB), DoorDash (DASH), Walmart (WMT) and Roku (ROKU). Economic data reports will include the Commerce Department’s January retail sales report, which is likely to show sales rebounded in January after dipping in December.

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2:10 p.m. ET: Stocks sink, Dow drops 400+ points

Here’s where stocks were trading Monday afternoon:

S&P 500 (^GSPC): -50.89 (-1.15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,367.75
Dow (^DJI): -402.1 (-1.16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,335.96
Nasdaq (^IXIC): -113.38 (-0.82{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,677.10
Crude (CL=F): +$2.01 (+2.16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $95.11 a barrel
Gold (GC=F): +$30.90 (+1.68{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,873.00 per ounce
10-year Treasury (^TNX): +1.6 bps to yield 1.967{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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12:02 p.m. ET: Peloton shares drop as new CEO says pushes back on near-term sale: Financial Times

Shares of Peloton (PTON) dropped Monday after newly installed CEO Barry McCarthy suggested to the Financial Times that a near-term sale of the company was unlikely to occur.

McCarthy, who is moving to New York from California for his new role leading the connected fitness company, told the media outlet, “If I thought it was likely that the business was going to be acquired in the foreseeable future, I can’t imagine it would be a rational act to move across the country.”

The remarks follow weeks of speculation and separate reports that companies including Amazon and Nike were considering purchasing the company. Peloton shares have fallen 5.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the year-to-date and 78{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} over the past year.

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10:51 a.m. ET: ‘We might have to get used to a protracted period of time where we have uncertainty around Russia’: Strategist

Markets have been whipsawed by emerging headlines around the Russia and Ukraine conflict in the past week — and investors may need to prepare for a more extended period of uncertainty about the geopolitical situation, according to at least one strategist.

“I think it’s a major concern. I don’t think we’re going to war any time soon. I think Russia is going to want to go ahead and essentially dance along with us,” David Tawil, ProChain Capital President, told Yahoo Finance Live on Monday. “And I think there’s the point where we might have to get used to a protracted period of time where we have uncertainty around Russia, around Ukraine, around a lot of commodities for those reasons. Much like COVID, we may have to go ahead and live with this for an extended period of time.”

“That will not be taken well by the markets in the short-term, but I think over the long-term, we will go ahead and digest that and go ahead and move on,” he added.

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9:36 a.m. ET: Gas prices jump to highest level since 2014, adding to inflation woes

Prices for gas at the pump climbed to a fresh seven-year high, according to new data from AAA, in another sign of inflationary pressures hitting consumers’ wallets across the country.

The average price for a gallon of gas increased to $3.488 as of Monday, AAA said. According to Bloomberg historical data, this marked the highest level since August 2014. The rise has tracked an extended jump in crude oil prices, with energy supply concerns rising alongside mounting tensions between Russia and Ukraine.

In the comparable year-ago period, the average price a gallon of gas was a $2.505 nationally. A month ago, the price was $3.306.

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9:31 a.m. ET: Stocks open lower amid geopolitical tensions

Here were the main moves in markets just after the opening bell Monday morning:

S&P 500 (^GSPC): -3.76 (-0.09{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,414.88
Dow (^DJI): -22.10 (-0.06{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,715.96
Nasdaq (^IXIC): -22.54 (-0.24{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,758.22
Crude (CL=F): -$0.70 (-0.75{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $92.40 a barrel
Gold (GC=F): +$21.80 (+1.18{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,863.90 per ounce
10-year Treasury (^TNX): +3 bps to yield 1.981{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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7:33 a.m. ET Monday: Stock futures extend gains, led by tech

Here were the main moves in markets as of Monday morning:

S&P 500 futures (ES=F): -40 points (-0.91{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,369.50
Dow futures (YM=F): -272 points (-0.79{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 34,355.00
Nasdaq futures (NQ=F): -164 points (-1.15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,076.50
Crude (CL=F): -$0.26 (-0.28{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $92.84 a barrel
Gold (GC=F): +$16.20 (+0.88{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,858.30 per ounce
10-year Treasury (^TNX): -1.6 bps to yield 1.935{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Photo by: NDZ/STAR MAX/IPx 2022 2/11/22 People walk past the New York Stock Exchange (NYSE) on Wall Street on February 11, 2022 in New York.

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

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February 12, 2022

Stocks, Earnings and Business News: Live Updates

Blockades of the U.S.-Canada border stymied flows of vital supplies for the fourth working day on Friday, leaving companies scrambling for elements and shutting down big car factories from Ontario to Alabama.

The partial closure of the Ambassador Bridge, the busiest land crossing amongst the nations and a crucial conduit for the vehicle sector, despatched ripples by means of North American source chains. Business teams termed on officers to forcefully take away protesters who have been triggering the blockades. Some companies tried to redistribute key areas among the their factories and appeared for other methods to shift products and solutions.

But other people appeared resigned to shutdowns, declaring that bypassing the Ambassador Bridge, which connects Detroit and Windsor, Ontario, was just way too high priced or tricky.

Toyota said that the disruptions had led to “periodic downtime” at its motor vegetation in West Virginia and Alabama, as perfectly as factories in Canada and Kentucky, and that interruptions were being very likely to carry on as a result of the weekend. Ford Motor curtailed capability at two vegetation in Windsor and Oakville, which is also in Ontario, and shut down its Ohio assembly plant.

Other automakers stated their assembly lines were being functioning but not at ideal degrees.

Standard Motors’ manufacturing was “running at rather usual concentrations,” the firm said Friday. Stellantis, which owns Jeep, Ram and other manufacturers, said that all its North The usa crops had commenced Friday early morning, but that the problem remained “incredibly fluid.”

The disruptions threatened to linger as truck drivers and members of considerably-proper groups protested vaccine mandates and other pandemic restrictions in Canada and known as for the resignation of Prime Minister Justin Trudeau.

Both of those the Canadian and American governments ended up attempting to support corporations get auto sections, refreshing fruit and greens, and other solutions via the border. Brands and logistics businesses were from time to time routing vehicles hundreds of miles out of their way to bridges and border checkpoints that were being nevertheless open up.

Alternatives to the Ambassador Bridge are minimal, said Kelly Stefanich, a Toyota spokeswoman. Sending shipments as a result of Buffalo and Mackinaw, Mich., for instance, necessary a lot more motorists and vans, which ended up currently in small offer.

“We are viewing vehicles starting off to flow gradually now, which is a fantastic indicator,” Ms. Stefanich stated Friday.

The protests adopted two years of pandemic-associated closures of ports and factories and a surge in desire for vehicles and other products among buyers who reduce spending on cafe meals, vacation and other solutions.

A persistent shortage of semiconductors has also depressed auto manufacturing, leaving makers particularly susceptible to the blockades.

“Every hour this persists the fees rack up,” mentioned Brian Kingston, president of the Canadian Car or truck Manufacturers’ Association, whose members contain Ford, G.M. and Stellantis. “They want to implement the law and take away the protesters from the highway main to the bridge.”

Output shutdowns will worsen a shortage of new autos, which has now pushed up charges, IHS Markit, a study agency, warned Friday.

Some enterprises that require to ship products across the border were being having to pay excess to reroute the freight via Buffalo, exactly where the crossing remained open up — at the very least for now, stated Jennifer Frigger-Latham, the vice president of profits and promoting at EMO Trans, a logistics firm.

“In the present-day current market, people are so utilized to delays and frustrations due to the fact of Covid, they are significantly more quickly to respond these times and throw revenue at the trouble,” she reported.

Canadian officers ended up letting some firms to deliver items through other ports of entry without obtaining to refile paperwork. U.S. customs officials ended up aiding that effort by adding personnel and screening traces at these alternate crossings.

But discovering alternate routes was not usually easy, claimed Linda Dynes, the government vice president of Canadian functions for Farrow, a 100-calendar year-previous customs broker.

She mentioned one crossing in Coutts, Alberta, had not been continually open up around the previous 7 days. Protesters may possibly try out to block a different amongst Saskatchewan and North Dakota. And the Peace Bridge connecting Fort Erie, Ontario, and Buffalo could be shut down this weekend. On Thursday, protesters clogged the Ottawa airport.

“It seems like just about every time you obtain an option route, it will get blocked, either by a farm vehicle or a truck,” Ms. Dynes claimed.

Domestic location costs for shipping and delivery experienced tripled in some scenarios, triggering many organizations to suspend shipments, she included.

People troubles have been compounded by a shortage of truck drivers. Some organization groups experienced spoken out towards the vaccine specifications for truckers in Canada and the United States, stating they would worsen logistical problems.

Numerous vans are striving to use a bridge that connects Port Huron, Mich., with the Canadian city of Sarnia, north of Detroit. But traffic is so weighty that vans frequently have to wait hours to cross, Mr. Kingston reported, adding that he experienced heard of waits of up to 8 several hours.

Some carmakers have moved components by airfreight or even helicopter. But “air cargo is not as economical for big and cumbersome factors,” Mr. Kingston stated.

He observed that the Ambassador Bridge was created to accommodate big figures of weighty trucks. Some dangerous materials or other specialised loads are unable to cross any other way.

Carmakers and suppliers are also breaking up shipments and putting them in lesser vehicles and vans, which can move by means of a tunnel that continues to be open involving Detroit and Windsor. Officials on both sides of the border have additional staff members to tackle improved business visitors, claimed Neal Belitsky, president of the organization that operates the tunnel.

But these types of actions are high-priced stopgaps, and quite a few companies are merely slowing down output till the blockade finishes. “The hope is that this will be above soon,” said Dan Hearsch, a controlling director at AlixPartners, a consulting company that has been assisting auto businesses cope with the turmoil.

The condition remained unpredictable, with authorities warning of copycat protests that could paralyze traffic in other areas. Ron Greene, the vice president of enterprise development at Overhaul, which monitors superior-worth freight like electronics and pharmaceuticals, reported the firm was advising truck motorists to plan alternate routes, continue to keep fuel tanks at the very least 3-quarters entire and continue to be in shut contact with dispatchers.

“We really do not know what to be expecting, if there’s going to be further protests in the U.S. or Canada,” he explained. “Truck motorists have to be conscious they may possibly need to have to make alternate ideas as these factors unfold.”

February 7, 2022

Stocks turn higher ahead of busy earnings, data week

Stock rose during a choppy session at the start of another busy week for corporate earnings and fresh economic data, as investors continue to assess the Federal Reserve’s path forward for monetary policy.

The S&P 500 extended gains after posting its best weekly rise of the year last week. The Dow also turned positive, while the Nasdaq was little changed in afternoon trading.

After last week’s rollercoaster trading — with stocks sliding following Meta Platforms’ (FB) disappointing outlook, and then rebounding sharply following Amazon’s (AMZN) earnings beat — investors are poised to receive another hefty batch of corporate earnings results. Companies including Disney (DIS) to Uber (UBER), Lyft (LYFT), Pfizer (PFE) and Coca-Cola (KO) are each set to report quarter results in the coming days. Peloton (PTON) will also post results amid reports that companies including Amazon and Nike (NKE) are considering making bids to purchase the fitness technology company.

Heading into this week, just over half of S&P 500 companies had reported actual quarterly earnings results. The expected growth rate for aggregate S&P 500 earnings stood at 29.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, according to data from FactSet on Friday. If maintained for the next several weeks of the earnings season, this would mark the fourth straight quarter that earnings grow by more than 25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

And on the economic data front, this week’s Consumer Price Index (CPI) due out Thursday will serve as one key report helping market participants determine the next moves from the Federal Reserve to curb rising prices.

Consensus economists are looking for the CPI to rise by 7.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on an annual basis for January, marking the fastest rise in prices since 1982. Such a result would further add fuel to the narrative that the U.S. economy has recovered sufficiently, and is now running hot enough, to warrant an aggressive pivot to tightening from the Fed. Last week’s much better-than-expected jump in payrolls in the Labor Department’s January jobs report also underscored the extent of the recovery.

“Following the stunning performance of the January employment report, the coming week’s key release is likely to be Thursday’s January CPI report as it will provide policymakers and market participants insight about inflation amid furthering signs of persistent, elevated price pressures that, in turn, support expectations for hawkish monetary policy actions initiating in March,” Sam Bullard, Wells Fargo senior economist, wrote in a note on Sunday.

“Further increases in inflation expectations, particularly longer-term expectations, would only add more pressure on the Fed to act in March and uncertainty over the path of rate hikes,” he added.

And indeed, market participants have increasingly priced in the likelihood that the Federal Reserve will ultimately raise interest rates five times in 2022, marking an increase from the just three interest rate hikes the central bank itself had telegraphed in December. Some investors have also suggested that the Fed might hike rates by 50 basis points after its March policy-setting meeting rather than by a quarter-point, which would mark the first move of such a magnitude since 2000.

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2:21 p.m. ET: Stocks rise in intraday trading

Here’s where stocks were trading Monday afternoon:

S&P 500 (^GSPC): +6.33 (+0.14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,506.86
Dow (^DJI): +147.16 (+0.42{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 35,236.90
Nasdaq (^IXIC): +1.44 (+0.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,099.44
Crude (CL=F): -$1.17 (-1.27{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $91.14 a barrel
Gold (GC=F): +$14.00 (+0.77{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,821.80 per ounce
10-year Treasury (^TNX): -1.1 bps to yield 1.921{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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12:16 p.m. ET: Meta Platforms shares slide for third straight day

Shares of Meta Platforms (FB) tracked toward a third consecutive day of declines, with the stock’s cumulative drop over this period nearing 30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

The stock has continued to slide in the aftermath of the company’s disappointing quarterly outlook delivered last Wednesday afternoon. Meta Platforms said it expected to have first quarter sales come in between $27 billion and $29 billion, falling short of the $30.25 billion consensus analysts were expecting. Daily active users and monthly active users each also fell short of expectations for the fourth quarter.

Meta Platforms cited a combination of increased competition from other social media players like TikTok and Snap, and changes to Apple’s iOS privacy system, for the disappointing results.

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10:16 a.m. ET: Bitcoin prices extend gains, topping $43,000

Bitcoin prices (BTC-USD) rose for a fifth straight day on Monday, heading for its longest winning streak since early September as a rebound in equities and other risk assets extended to cryptocurrencies.

Prices for the largest cryptocurrency by market capitalization were up 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to more than $43,400 Monday morning in New York. This brought Bitcoin to its highest level since January 15, according to Bloomberg data.

Other smaller cryptocurrencies also rallied. Prices for the meme coin Shiba Inu (SHIB-USD) jumped nearly 40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Monday morning, while Solana (SOL-USD) gained nearly 8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

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9:38 a.m. ET: Peloton shares gain 27{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} amid acquisition reports

Peloton (PTON) shares rose by nearly 30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} just after market open Monday morning amid reports that the fitness technology company had attracted interest among several major companies for a potential takeover.

The Financial Times and Wall Street Journal reported Friday that both Nike and Amazon were considering making bids to purchase Peloton. Peloton shares have fallen 83{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} over the past 52 weeks as the company signaled demand was beginning to wane for its connected at-home stationary bike and treadmill products. The company has also recently received a sharp rebuke from activist investment firm Blackwells Capitals, which called for Peloton CEO John Foley to be removed amid the stock’s slide.

Despite the stock pop following reports of the deal, some Wall Street analysts expressed skepticism that such a deal would actually go through.

“We believe any deal is unlikely given (i) PTON’s dual class share structure, with a handful of insiders holding the vast majority of super-voting shares; (ii) co-founder / CEO Foley’s long-term vision for capturing burgeoning Connected Fitness TAM [total addressable market] is still in early innings, with expansion across verticals & geos in coming years, as well as likely higher penetration of broader home fitness market over time; and (iii) poor potential fit with reported suitors, including Amazon,” Cowen analyst John Blackledge wrote in a note early Monday.

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9:31 a.m. ET: Stocks rise at the open

Here’s where stocks were trading just after the opening bell:

S&P 500 (^GSPC): +6.67 (+0.15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,504.12
Dow (^DJI): +57.38 (+0.16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 35,147.12
Nasdaq (^IXIC): +15.79 (+0.11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,113.80
Crude (CL=F): -$0.81 (-0.88{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $91.50 a barrel
Gold (GC=F): +$8.70 (+0.48{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,816.50 per ounce
10-year Treasury (^TNX): -1.3 bps to yield 1.919{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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7:34 a.m. ET: Monday: Stock futures mostly higher

Here’s where markets were trading Monday morning:

S&P 500 futures (ES=F): +3 points (+0.07{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,495.50
Dow futures (YM=F): -4 points (-0.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 34,974.00
Nasdaq futures (NQ=F): +23.25 points (+0.16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,708.75
Crude (CL=F): -$0.69 (-0.75{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $91.62 a barrel
Gold (GC=F): +$6.30 (+0.35{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,814.10 per ounce
10-year Treasury (^TNX): -0.7 bps to yield 1.925{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

NEW YORK, NEW YORK - FEBRUARY 04: Traders work on the floor of the New York Stock Exchange (NYSE) on February 04, 2022 in New York City. Following a strong jobs report, stocks still slid in morning trading with the Dow Jones Industrial Average down over 60 points as volatility in tech markets unsettled investors. (Photo by Spencer Platt/Getty Images) — NEW YORK, NEW YORK – FEBRUARY 04: Traders work on the floor of the New York Stock Exchange (NYSE) on February 04, 2022 in New York City. Following a strong jobs report, stocks still slid in morning trading with the Dow Jones Industrial Average down over 60 points as volatility in tech markets unsettled investors. (Photo by Spencer Platt/Getty Images)

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

February 6, 2022

Stocks rise after jobs report shows surprise jump in payrolls

Stocks shook off earlier losses to mostly rise Friday afternoon even as investors viewed a much stronger-than-expected jobs report as bolstering the case for the Federal Reserve to continue down its more hawkish monetary policy path.

The S&P 500 turned higher during intraday trading, closing up 0.52{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} at 4,500.61, while the Dow lost steam to close at 35,089.28. The Nasdaq also rose by 1.58{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 14,098.01. A day earlier, the Nasdaq Composite index sank by 3.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for its worst single-day decline since September 2020. Oil prices also remained in focus as U.S. West Texas intermediate crude oil prices jumped further above $90 per barrel after crossing that threshold for the first time since 2014 on Thursday.

New labor market data was the major focal point for investors on Friday, showing employment growth held up much more robustly than expected despite the surge in Omicron cases at the beginning of the year. Payrolls grew by 467,000, or well above the 125,000 expected to return, and job gains for December were upwardly revised to more than half a million. The labor force participation rate also improved markedly, and average hourly earnings jumped by a greater-than-expected 5.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, or the most since May 2020.

The latest jobs report came as a surprise following a string of other softening data points on the state of the labor market, with ADP’s private payrolls report showing earlier this week the first contraction in private-sector employment in more than a year. But Friday’s report offered potential fodder for the hawks in the Federal Reserve to press ahead with their plans to raise interest rates and begin tightening in the near-term, as the economic recovery continues to progress.

“For markets, the jobs report is all about the Fed, and today’s upside surprises in both job creation and wage growth keep the Fed on track to begin raising rates in March and hike four or more times this year,” Barry Gilbert, asset allocation strategist at LPL Financial, wrote in an email Friday.

Meanwhile, a batch of upbeat quarterly results from Amazon (AMZN), Snap (SNAP) and Pinterest (PINS) helped dispel some of the gloom hanging over technology shares from during the regular trading day, after Meta Platforms (FB) offered an outlook that fell well short of Wall Street’s expectations.

Investors responded favorably to Amazon’s announced price hike on its premium Amazon Prime subscription and better-than-expected growth in its lucrative cloud computing business unit. And Snap and Pinterest each topped Wall Street estimates for quarterly sales and earnings, suggesting Meta Platforms may have been alone among the ad-driven internet companies in bearing the brunt of headwinds from competition and Apple iOS software changes.

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4:01 p.m. ET: Dow loses steam, Nasdaq gains

Here were the main moves in markets as of 4:01 p.m. ET:

S&P 500 (^GSPC): +23.17 (+0.52{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,500.61
Dow (^DJI): -22.01 (-0.06{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 35,089.15
Nasdaq (^IXIC): +219.19 (+1.58{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,098.01
Crude (CL=F): +$2.11 (+2.34{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $92.38 a barrel
Gold (GC=F): +$3.80 (+0.21{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,807.90 per ounce
10-year Treasury (^TNX): +10.3 bps to yield 1.9300{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

12:02 p.m. ET: Bitcoin jumps by nearly 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to top $40,000

Bitcoin prices (BTC-USD) jumped by nearly 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Friday afternoon to cross the $40,000 level, with the largest cryptocurrency by market cap posting its biggest single-day rise in months as digital currency prices tracked gains across major tech stocks.

Prices of Ether, LiteCoin, and XRP also moved notably higher during intraday trading as well. Stocks related to cryptocurrencies also gained, including Coinbase (COIN) with a rise of 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, and MicroStrategy (MSTR) with a jump of more than 11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

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10:12 a.m. ET: Snap shares surge more than 50{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} after users, earnings top estimates, shaking off growth concerns

Snap shares (SNAP) soared by more than 50{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} intraday on Friday after the company topped expectations across virtually all major metrics in its latest quarterly results.

Revenue jumped 42{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} over last year to reach $1.3 billion, with daily active users growing by 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to reach 319 million. Adjusted earnings per share of 22 cents were double the 11-cent consensus estimate. The bottom-line results also helped Snap post its first annual profit for the full-year 2021.

Despite the surge in the stock price, however, Snap shares remained lower by more than 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the year-to-date through intraday trading on Friday.

—

9:40 a.m. ET: Amazon shares jump by most since 2017 after earnings, Prime price increase

Amazon (AMZN) shares rose by 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} just after market open, which would mark the biggest single-day rise in the stock since 2017 after the e-commerce giant posted stronger-than-expected earnings results and announced a price increase on its Prime membership subscription.

Fourth-quarter sales grew 9.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} over last year to a record $137.4 billion. Though online store net sales were down slightly on a year-over-year basis, high-margin Amazon Web Services cloud sales grew 40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to reach $17.8 billion.

Amazon also said its Prime annual membership was going up in price by $20 to $139 each year, offering a future boost to top-line results. The company sees current-quarter net sales coming in between $112 billion and $117 billion, with operating income of as much as $6.0 billion.

—

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

Here’s where stocks were trading Friday morning just after market open:

S&P 500 (^GSPC): +1.13 (+0.03{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,474.86
Dow (^DJI): -110.52 (-0.31{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 35,000.64
Nasdaq (^IXIC): +56.57 (+0.41{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,929.16
Crude (CL=F): +$1.74 (+1.93{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $92.01 a barrel
Gold (GC=F): -$3.70 (-0.21{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,800.40 per ounce
10-year Treasury (^TNX): +7.4 bps to yield 1.901{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

8:55 a.m. ET: U.S. employment unexpectedly jumped in January despite Omicron surge

U.S. employers added back far more jobs than expected in January even as Omicron cases surged at the beginning of the new year.

Non-farm payrolls grew by 467,000, far exceeding the 125,000 consensus economists were looking for, according to Bloomberg data. The unemployment rate rose to 4.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, but this was just a tick above the pandemic-era low of 3.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} seen in December.

Meanwhile, signs of continued inflation also emerged in the January report, as average hourly earnings jumped by a bigger-than-expected 5.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in January. This came following a 4.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} increase in December. On a month-over-month basis, average hourly wages rose 0.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, or also well above the 0.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from December.

—

7:32 a.m. ET: Friday: Stock futures mixed ahead of jobs report

Here’s where markets were trading Friday morning:

S&P 500 futures (ES=F): -5 points (-0.11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,464.00
Dow futures (YM=F): -145.00 points (-0.41{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 34,826.00
Nasdaq futures (NQ=F): +56.75 points (+0.39{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,549.00
Crude (CL=F): +$1.90 (+2.10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $92.17 a barrel
Gold (GC=F): +$7.10 (+0.39{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,811.20 per ounce
10-year Treasury (^TNX): -0.7 bps to yield 1.82{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

6:13 p.m. ET Thursday: Stock futures jump after Amazon earnings

Here were the main moves in markets during the overnight session:

S&P 500 futures (ES=F): +45.25 points (+1.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,514.25
Dow futures (YM=F): +148 points (+0.42{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 35,119.00
Nasdaq futures (NQ=F): +265.5 points (+1.83{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,757.75

NEW YORK, NEW YORK - JANUARY 31: Traders work on the floor of the New York Stock Exchange (NYSE) on January 31, 2022 in New York City. After a volatile week, the Dow Jones Industrial Average was down slightly in morning trading. (Photo by Spencer Platt/Getty Images) — NEW YORK, NEW YORK – JANUARY 31: Traders work on the floor of the New York Stock Exchange (NYSE) on January 31, 2022 in New York City. After a volatile week, the Dow Jones Industrial Average was down slightly in morning trading. (Photo by Spencer Platt/Getty Images)

—

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

February 4, 2022

Asian Stocks Follow Wall St Higher With China, Korea Closed | Business News

By JOE McDONALD, AP Organization Writer

BEIJING (AP) — Inventory price ranges in Tokyo and Sydney adopted Wall Street larger Wednesday whilst China, South Korea and Southeast Asian marketplaces have been closed for the Lunar New Yr.

Wall Street’s benchmark S&P 500 index attained .7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on Tuesday, boosted by gains for power and tech stocks in a late burst of buying.

The Nikkei 225 in Tokyo rose 1.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 27,497.60 and Sydney’s S&P-ASX 200 included 1.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 7,089.90.

New Zealand and Jakarta also attained.

Political Cartoons

New Zealand on Wednesday documented a document-low unemployment price of 3.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Finance Minister Grant Robertson stated it was an “extremely positive” consequence and proof that enterprises were being continuing to hire people regardless of pandemic setbacks.

But political opponents claimed the authentic fee was about double the headline figure, which they claimed was was skewed mainly because it did not count folks who weren’t actively searching for function. The Data New Zealand determine was seasonally modified for the quarter ending December and was the lowest considering the fact that current history-keeping started in 1986.

U.S. stocks are coming off their worst month considering that early in the pandemic just about two yrs ago.

Traders are making an attempt to figure out how the overall economy and company earnings will be impacted by future Federal Reserve amount hikes, supposed to neat inflation that has surged to a 4-ten years high.

On Tuesday, the S&P 500 rose to 4,546.54. It is 5.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} below the Jan. 3 all-time significant.

The Dow Jones Industrial Ordinary obtained .8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 35,405.24. The Nasdaq composite added .7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 14,346.

Exxon Mobil rose 6.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} right after the firm noted strong fourth quarter revenue. Hewlett Packard Company rose 2.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

The virus pandemic is however a lingering threat and each and every new variant could provide a surge of scenarios that threatens corporations and customer exercise.

Fed officials mentioned in mid-December designs to wind down bond purchases and other stimulus that is boosting prices would be accelerated to interesting inflation.

Buyers have stored spending in spite of price tag rises, but forecasters retail purchases could possibly weaken and crimp economic progress.

Traders be expecting the Fed to hike rates at the very least four occasions this yr, starting off in March.

On Friday, the Labor Section reports U.S. employment for January.

In strength marketplaces, benchmark U.S. crude attained 13 cents to $88.33 for each barrel in electronic trading on the New York Mercantile Exchange. The contract rose 5 cents on Tuesday to $88.20. Brent crude, the price tag foundation for intercontinental oils, additional 18 cents to $89.34 per barrel in London. It fell 10 cents the former session to $89.16.

The greenback edged up to 114.73 yen from Tuesday’s 114.71 yen. The euro rose to $1.1277 from $1.1254.

January 31, 2022

Stocks week ahead: Warren Buffett has the last laugh as Berkshire Hathaway beats the market

But that’s not creating Berkshire Hathaway’s Warren Buffett to lose any snooze.

Banking companies, vitality corporations and other price stocks have rallied this calendar year, which is good information for Buffett because the Oracle of Omaha’s conglomerate invests in several of these businesses. Benefit stocks normally have lower rate-to-earnings ratios, and they are unquestionably not stylish.

Berkshire Hathaway (BRKB) shares are up about 3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} this year and near an all-time large, whilst all the FAANGs, Microsoft (MSFT) and Tesla (TSLA) are deeply in the red. FAANG refers to Facebook, Amazon, Apple, Netflix and and Google.

Lots of of Berkshire’s top investments are economic corporations which have started off the 12 months in the inexperienced, including Lender of The united states (BAC), American Express (AXP) and US Bancorp (USB).

Berkshire’s portfolio has also gotten a improve from Chevron (CVX), which is Buffett’s twelfth-largest keeping. The oil giant’s shares are up 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} this calendar year, making it the top rated performer in the Dow.

If this retains up, Dave Portnoy of media firm Barstool Sporting activities, who has positioned himself as an investing guru for a new generation of traders, will have to try to eat these terms from a June 2020 tweet: “I’m positive Warren Buffett is a great guy but when it comes to shares he is washed up. I am the captain now.”

It is as well shortly to say regardless of whether the present market place tendencies will hold. But price buyers who showed patience are searching quite very good so significantly in 2022.

“Buffett’s the tortoise. Benefit buyers just plod alongside,” explained John Buckingham, a value stock fund portfolio supervisor at Kovitz. “Indeed, the Portnoys and Cathie Woods will have their working day. But so numerous view investing as a on line casino. The important is to be patient and accept volatility.”

Guaranteed, the 91-year-old Buffett’s greatest keeping is Apple (AAPL). which is down 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} so significantly in 2022 but just reported stellar earnings and potent Apple iphone gross sales. Berkshire even has a tiny stake in Amazon (AMZN), which has fallen 15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. So Berkshire has not avoided the Nasdaq meltdown totally.

But Berkshire would not own Facebook (FB) dad or mum Meta, Netflix or Google (GOOGL) owner Alphabet. It also doesn’t devote in Microsoft (MSFT), owing to Buffett’s friendship with Microsoft co-founder Bill Gates. Berkshire does not have a stake in Elon Musk’s Tesla (TSLA), but it has invested in Chinese electrical car company BYD (BYDDF).

Berkshire isn’t really just an investing organization. It owns perfectly-recognized corporations ranging from battery maker Duracell and the Burlington Northern Santa Fe railroad to Dairy Queen, Fruit of the Loom and paint vendor Benjamin Moore.

However, Berkshire is mainly a economic companies organization many thanks to the reality that it owns insurance policy big Geico and a number of other companies in the sector.

Berkshire has also benefited from the truth that investors have flocked to financial stocks thanks to expectations that the Federal Reserve will quickly begin increasing desire premiums. Berkshire is the biggest keeping in the Financial Find Sector SPDR (XLF) exchange-trade fund.

“When investors gravitate in direction of price they will get financial shares and Buffett will get his share,” Buckingham stated. “Berkshire is benefiting for the reason that increased curiosity prices enable Buffett’s insurance plan business enterprise.”

All eyes on the BoE and ECB

Talking of costs, the Fed has strongly advised that a hike is coming in March. Investors will be viewing the January positions report on Friday for wage expansion and inflation details, which could impression potential Fed selections.

Some central banks have already hiked premiums to battle increasing inflation. The Lender of England, which increased premiums from zero in December, is widely anticipated to increase them once more at its up coming assembly on Thursday.

Nearly two-thirds of the economists surveyed by Reuters are predicting that the central financial institution will increase prices a different quarter of a percentage level, to .5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Several central banking companies in made economies are anticipated to adhere to fit and start climbing fees later on this calendar year.

“They are all going to move step by step if they can. Central banking institutions don’t want to be overly aggressive. It can be systematic,” claimed Anthony Saglimbene, world wide sector strategist with Ameriprise Monetary.

The one particular possible exception to the rule? The European Central Bank. The ECB also meets Thursday and is unlikely to elevate prices. Its critical refinancing level is most likely to continue being at zero and will almost certainly remain there for the foreseeable foreseeable future.

ECB President Christine Lagarde is arguably the most dovish of the main central lender chiefs all over the globe. She has argued that the ECB is not likely to increase fees at any stage in 2022 as the Covid pandemic continues to be a important financial obstacle.

“The ECB will want to make it possible for for additional time just before level hikes,” Saglimbene said. “Growth is slower.”

Saglimbene noted that southern European nations even now have to have tremendous-very low premiums to enhance their economies though EU powerhouse Germany is becoming impacted by a slower world wide trade and manufacturing surroundings.

Up next

Monday: Chinese inventory markets closed all 7 days for Lunar New Year

Tuesday: US ISM producing December JOLTS Earnings from Exxon Mobil (XOM), UPS (UPS), UBS (UBS), Alphabet, Starbucks (SBUX), GM (GM), PayPal (PYPL) and Digital Arts (EA)

Wednesday: US ADP employment report Earnings from Marathon Petroleum (MPC), AbbVie (ABBV), Humana (HUM), New York Times (NYT), Meta Platforms, T-Cellular (TMUS), Metlife (Satisfied), Allstate (ALL), Qualcomm (QCOM), Aflac (AFL) and Spotify (Location)

Thursday: Financial institution of England and European Central Bank price decisions US weekly jobless statements US ISM providers: Earnings from Shell (RDSA), Cigna (CI), ConocoPhillips (COP), Merck (MRK), Honeywell (HON), Hershey (HSY), Amazon, Ford (F), Prudential (PRU), Activision Blizzard (ATVI), News Corp (NWS), Clorox (CLX), Snap (SNAP) and Pinterest (PINS)

Friday: US work report Earnings from Bristol-Myers (BMY)