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12:10 p.m. Oct. 13, 2021 - By Mark Decambre
S&P 500, Nasdaq Composite snap 3-session skid but Dow ensnared in longest losing skid in three weeksU.S. stocks ended mostly in positive territory Wednesday, halting a string of losses at three, as investors digested minutes from the Federal Reserve's Sept. 21-22 policy meeting that seemed to underscore the cetnral bank's plan to dial back its monthly purchases of Treasurys and mortgage-backed securities as evidence of inflation show that pricing pressures continue to percolate. The Dow Jones Industrial Average ended lower but almost unchanged at about 34,378. Still, it was the fourth straight decline for the blue-chip benchmark, matching the longest losing skid ended Sept. 21, FactSet data show. The S&P 500 index closed up 0.3% at 4,363, while the Nasdaq Composite Index rose 0.7% at about 14,572, and marked the best day since Oct. 7. Several Fed officials said they even preferred a more rapid reduction of the central bank's current $120 billion pace of monthly purchases, rather than the $15 billion reduction anticipated. Data showed that the U.S. consumer-price index rose 0.4% in September after climbing 0.3% in August, the Labor Department said on Wednesday. In the 12 months through September, the CPI increased 5.4% after advancing 5.3% year-over-year in August.
12:11 p.m. Oct. 12, 2021 - By Mark Decambre
The stock market closed lower Tuesday, logging another intraday reversal and a 3rd straight fall for the longest skid in 3 weeks U.S. stocks finished lower Tuesday, with the main indexes erasing early modest gains to close lower for the third straight decline for the three main equity benchmarks, ahead of the unofficial start of third-quarter results from American corporations. The Dow Jones Industrial Average fell 118 points, or 0.3%, the S&P 500 index declined 0.2% to 4,350, while the Nasdaq Composite Index declined 0.1% to 14,465. The small-capitalization Russell 2000 index , however, was headed for a close in positive territory, up 0.4%. Markets have been choppy amid concerns about slowing growth here and abroad and worries that inflation may be more durable than had been previously estimated by some members of the Federal Reserve. The International Monetary Fund said that it now sees global growth of 5.9% this year - down one-tenth of a percent from its July forecast - and then slowing to 4.9% growth in 2022. For the U.S., the IMF cut its growth estimate for this year down to 6%. Atlanta Federal Reserve President Raphael Bostic said that the recent burst of U.S. inflation is likely to last longer than expected and no longer should be considered "transitory." Minutes from the Fed's Sept. 21-22 meeting are due at 2 p.n. ET on Wednesday. Before that, a report on consumer inflation, the consumer price index, is due at 8:30 p.m. ET.
12:11 p.m. Oct. 6, 2021 - By Mark Decambre
Dow stages 560-point U-turn to end positive as McConnell says he'll allow Dems to pass short-term debt-limit extensionU.S. stocks on Wednesday staged a powerful intraday turnabout that resulted in all three indexes finishing in positive territory after sharp early losses. Stock-market investors have been buffeted lately by a surge in energy prices, notably natural-gas futures , heightening fears about a surge in inflation that might prompt the Federal Reserve to act sooner to end market-accommodative policies. The Dow Jones Industrial Average [: DJIA] closed over 100 points higher, or 0.3%, to reach about 34,417, and had been down by as many as 459 points, or 1.3%, while the S&P 500 index climbed 0.4% to 4,364, and the Nasdaq Composite Index advanced 0.5% to reach 14,501 but had seen an intraday low at 14,259.07, putting the technology-laden index down by as many as 1.2% on the session. For the Nasdaq Composite it was the biggest intraday turnaround since March 25, while it was the biggest intraday comeback for the Dow since Dec. 21, 2020, according to Dow Jones Market Data. A rise in yields, with the benchmark 10-year Treasury note reaching 1.57%, initially weighing on markets, but those rate moves subsided somewhat later in the session and reports about a possible detente between the GOP and Democrats set the stage for a mini comeback. Senate Minority Leader Mitch McConnell of Kentucky proposed allowing Democrats to "use normal procedures to pass an emergency debt limit extension at a fixed dollar amount to cover current spending levels into December." In economic data, a report from Automatic Data Processing Inc. showed that 568,000 private-sector jobs were created in September, outpacing estimates from The Wall Street Journal for 425,000. However, a reading for August was reduced to 340,000 from 374,000.
8:49 a.m. Sept. 30, 2021 - By Victor Reklaitis
Manchin wants any revenue over $1.5 trillion from reconciliation bill to go to reducing deficit: reportDemocratic Sen. Joe Manchin of West Virginia, who wants to his party's $3.5 trillion spending plan cut by more than half, has argued that any revenue from it that exceeds $1.5 trillion should go toward reducing the U.S. deficit, according to a on Thursday, citing a document that he reportedly has been distributing among colleagues. The document also spells out other stances taken by Manchin that previously have been reported, such as his proposal to raise the corporate tax rate to 25% and his view that the Federal Reserve should pull back on certain stimulus measures. Democrats need the support of Manchin in order to advance legislation through a process known as budget reconciliation because the Senate is split 50-50.
6:38 a.m. Sept. 30, 2021 - By Greg Robb
Senior House Republican defends Powell from Warren's criticismRep. Patrick McHenry, the ranking Republican on the House Financial Services Committee, on Thursday defended Fed Chairman Jerome Powell from criticism made earlier in the week by Sen. Elizabeth Warren, the Democrat from Massachusetts. Warren said Powell was a "dangerous man" because he had deregulated the biggest banks over his four-year term and said she would not vote to give him a second term if he were nominated for a second term. McHenry said this criticism was "reckless and unmoored from reality." McHenry said Powell's "decisive action" prevented the worst of the coronavirus pandemic crisis.
5:35 a.m. Sept. 30, 2021 - By Mark Decambre
U.S. stock market gains early Thursday as investors aim to close out downbeat SeptemberU.S. stocks rise Thursday, as Wall Street aims to wrap up the last trading day of September and the quarter, as investors await another appearance by Federal Reserve Chairman Jerome Powell Treasury Secretary Janet Yellen, who will appear before the House Financial Services Committee. The Dow Jones Industrial Average was up 164 points, or 0.5%, at 34,554, the S&P 500 index was climbing 0.5% to 4,381, while the Nasdaq Composite Index was up 0.7% early in the session. For the month, the Dow was headed for a 2.4% decline, the S&P 500 was down 3.2% and the Nasdaq Composite was off 4.3%. For the quarter, the Dow was flat, the S&P 500 was up 1.9% and the Nasdaq Composite was up 0.8%.
12:11 p.m. Sept. 29, 2021 - By Mark Decambre
Nasdaq Composite books 4th straight loss as stock-market rebound fades in final hour of Wednesday tradeU.S. stock-market benchmarks closed slightly higher but well off the best levels of Wednesday's trade as Wall Street attempted to recover some of the losses from Tuesday's yield-fueled rout. The Dow Jones Industrial Average closed up by about 90 points, or 0.3%, to 34,391, on a preliminary basis; the S&P 500 index advanced 0.2% to around 4,359, while the Nasdaq Composite Index declined 0.2% at 14,512 to mark the fourth straight decline. Renewed concerns about too-hot inflation, which could force the Federal Reserve to ramp up interest-rate hikes, is causing friction in equity markets. The 10-year Treasury note yields [ss: BX:TMUBMUSD10Y] 1.540%, up from 1.534% on Tuesday. A number of other concerns, including those centered on the debt limit and the worries about weakening economic output, are also buffeting bulls.
5:35 a.m. Sept. 29, 2021 - By Mark Decambre
Dow industrials attempt to bounce back after Tuesday's yield-driven selloffU.S. stock benchmarks were trading higher early Wednesday, following the worst selloff for the S&P 500 in roughly four months, as surging bond yields spooked investors. The Dow Jones Industrial Average was trading 0.3% higher at 34,398, the S&P 500 index was gaining 0.4%, following its worst daily percentage decline since May 12. The Nasdaq Composite Index was trading 0.6% higher near the start of Wednesday's action, at 14,827. Yields began their ascent last week, following a Federal Reserve meeting that indicated the central bank was ready to begin backing away from its accommodative policy put in place to help the economy cope with the pandemic. On Wednesday, the 10-year Treasury yield was edging back at around 1.52%. Bond prices move in the opposite direction of yields.
12:08 p.m. Sept. 28, 2021 - By Mark Decambre
Dow skids 570-points and snaps 4-day win streak and Nasdaq notches worst day since March 18The Dow Jones Industrial Average closed lower Tuesday, along with the rest of the market, which faced a fresh drop in September, putting the blue-chip index on track to nearly erase its entire gains over the past three months and deliver the worst monthly decline since October. For the Nasdaq Composite Index , it was the worst session since March 18 on a percentage basis, down 2.8% to end 14,546, on a preliminary basis. The Dow closed 1.6% lower to reach 34,300, and is up less than 0.1% for the quarter, while the S&P 500 index declined 2% on Tuesday to reach around 4,353. The slump in equities comes as The 10-year Treasury yield was up about 6 basis points at 1.54% Tuesday afternoon, after hitting its highest level since June. Bond yields have been rising as investors anticipate the Federal Reserve moving away from the accommodative policy it set during the early months of the pandemic amid concerns over elevated inflation. Rising long-term bond yields have put pressure on tech- and other growth-related shares, while stocks for companies more sensitive to the economic cycle were also succumbing to selling pressure, but outperformed more rate-sensitive stocks. Energy shares, however, were the only bright spot in markets, with the S&P 500's energy sector up 0.5% on the day, amid concerns of an energy shortage in parts of the globe.
6:51 a.m. Sept. 28, 2021 - By Greg Robb
Powell: Some bottlenecks sparking inflation have gotten worseFederal Reserve Chairman Jerome Powell said Tuesday that some of the supply-side bottlenecks behind the surge in inflation have "gotten worse." "Look at the car companies, look at the ships with the anchors down outside of Los Angeles. This is really a mismatch between demand and supply, we need those supply blockages to alleviate, to abate, before inflation can come down," Powell said, during a Senate Banking Committee hearing. The Fed projects that inflation will come down and most of the gains in inflation are coming from a very small category of items, Powell added.
12:13 p.m. Sept. 27, 2021 - By Victor Reklaitis
Dallas Fed's Kaplan, under scrutiny for 2020 trading activity, to retire Oct. 8The Dallas Federal Reserve announced Monday that its president, Rob Kaplan, will retire from the regional bank on Oct. 8. The departure comes after Kaplan and Boston Fed President Eric Rosengren of individual securities. that "the recent focus on my financial disclosure risks becoming a distraction" to the U.S. central bank's work. earlier Monday that he will retire on Thursday.
4:47 a.m. Sept. 27, 2021 - By Greg Robb
Fed's Rosengren, under scrutiny for 2020 trading activity, to retire on Sept. 30Boston Fed President Eric Rosengren announced Monday he will retire on Sept 30. In a statement, Rosengren said he moved up his long-planned retirement by nine months because of health concerns. Rosengren would have had to retire next June under Fed rules. Rosengren has been criticized for actively trading in real-estate investment trusts in 2020 while the Fed was taking extraordinary steps to keep financial markets stable during the pandemic. Reformers, like the group Better Markets, had called for Rosengren to resign.
12:10 p.m. Sept. 22, 2021 - By Mark Decambre
Dow, S&P 500 post best daily gain in 2 months even as Fed says tapering of asset purchases coming soonU.S. stock indexes closed higher Wednesday, with the S&P 500 and the Dow industrials notching their best daily gains in about two months, as Federal Reserve Chairman Jerome Powell signaled the central bank may announce a pullback of its bond purchases in November and could start to raise interest rates in 2022, with both moves largely expected by market participants. Subsiding fears around embattled Chinese property development company Evergrande, which rattled investors on Monday, also helped set a more bullish tone on Wall Street. But investors are also watching developments in the U.S. Congress on raising the federal debt ceiling. The Dow Jones Industrial Average rose by about 338 points, or 1%, to reach 34,258, representing the best point and percentage gain for the blue-chip index since July 20; while the S&P 500 index climbed 1% to 4,395, marking the best day since July 23. The Nasdaq Composite Index , meanwhile, also rose 1% to 14,896 for its best day since Aug. 27, FactSet data show. In corporate news, shares of Stitch Fix Inc. rallied nearly 16% on Wednesday after reporting quarterly results.
10:08 a.m. Sept. 22, 2021 - By Mark Decambre
Dow rises over 400 points, adding to rally as Federal Reserve says reducing asset purchases 'may soon be warranted'The Dow industrials and the broader market held onto early sharp gains on Wednesday after the Federal Reserve kept rates unchanged, as expected, and indicated that tapering of asset purchases "may soon be warranted," without providing specific details on timing and pace. The Dow Jones Industrial Average was trading 449 points higher, or 1.3%, at 34,359, the S&P 500 index traded 1.2% up at 4,405, while the Nasdaq Composit Index advanced 1% at 14,895. The Fed decision will be followed by a news conference with Chairman Jerome Powell at 2:30 p.m. Eastern Time. The Fed has been buying $80 billion worth of Treasurys and $40 billion worth of mortgage-backed securities each month since last summer to keep long-term interest rates low and spur demand. Since the summer, the Fed has been talking about slowing down the purchases. The central bank has been guarded, worried there could be a repeat of the "taper tantrum" that roiled global financial markets in 2013. The formal announcement could come at the November 2-3 meeting or December 14-15, economists said.
5:34 a.m. Sept. 21, 2021 - By Mark Decambre
U.S. stocks drift higher early Tuesday as Wall Street attempts to bounce back from Evergrande-inspired routU.S. stock indexes climbed Tuesday morning, trading modestly higher as the market tries to recover from the worst single day for the S&P 500 in more than four months, sparked partly by concerns about Chinese property developer Evergrande. The Dow Jones Industrial Average gains 0.4% at 34,091, the S&P 500 index advanced 0.4% to 4,374, while the Nasdaq Composite Index climbed 0.4% to 14,776. Concerns about financial contagion from Evergrande, a property developer with some $300 bilion in debt, came at a critical juncture, with several firms having warned, correctly, that September would be bumpy for U.S. equities after a smooth summer. It also comes as the Federal Reserve kicks off its two-day policy meeting later Tuesday.
3:30 a.m. Sept. 17, 2021 - By Steve Gelsi
Wedbush upgrades Silicon Valley Bank to outperformWedbush Securities analyst David J. Chiaverini on Friday upgraded SVB Financial Group to outperform from neutral and raised the bank's 12-month price target to $700 a share from $600 a share. Chiaverini said the parent company of Silicon Valley Bank is positioned to benefit from its favorable business mix as well as interest rate hikes from the U.S. Federal Reserve. "SIVB has reported several consecutive blowout quarters, driven by its emphasis on banking the innovation economy, especially the tech and life sciences industries, which have thrived throughout the pandemic," he said. Wedbush Securities expects multiple rate hikes, which will potentially benefit the bank. It's also poised to gain from its acquisition of Boston Private as well as new hires in the technology banking space. Wedbush now expects three 25 basis point rate hikes each in late 2022 and 2023 from the Fed. Shares of SVB closed at $608.45 on Thursday, The stock has risen 57% so far this year, compared to an increase of 28% in the Financial Select SPDR Fund .
12:06 p.m. Sept. 16, 2021 - By Mark Decambre
Dow, S&P 500 close lower as Nasdaq Composite ekes out back-to-back gains in volatile Thursday actionU.S. equity markets on Thursday finished well off session lows, with the Nasdaq Composite booking consecutive gains but the S&P 500 and the Dow notching slight losses, as investors parsed economic reports ahead of a key gathering of policy makers next week. The turbulence in the session, similar to what the market has exhibited over the past week, came even as August retail sales produced an unexpected rise and a measure of activity in the Philadelphia Federal Reserve district that was stronger than expected. The Nasdaq Composite Index closed 0.1% higher at 15,182, on a preliminary basis, enough for its second straight gain; the S&P 500 index finished down 0.2% at around 4,474; while the Dow Jones Industrial Average fell 0.2% to about 34,751. Data showed August retail sales rose 0.7%, defying forecasts for a 0.7% fall. Excluding autos, sales jumped 1.8%, compared with expectations for a rise of 0.2%. Separately, the Philadelphia Fed's activity index jumped to 30.7 in September from 19.4 a month earlier. At the same time, data showed first-time claims for unemployment benefits rose more than expected in the week ending Sept. 11, though continuing claims fell. In corporate news, AMC Entertainment Holdings Inc. announced in August it would accept bitcoin for online ticket and concession purchases before the end of the year. Thursday's trade was informed by a big pullback in China stocks, with the Shanghai Composite ending down 1.3%. Investors are looking ahead to the Federal Reserve's two-day policy meeting that kicks off on Sept. 21.
5:34 a.m. Sept. 16, 2021 - By Mark Decambre
Dow climbs at the open but broader stock market kicks off Thursday's trade under pressureU.S. stock benchmarks were mixed Thursday morning, with the Dow industrials posting modest gains while the broader market was under pressure, after August retail sales showed an unexpected rise and a measure of activity in the Philadelphia Federal Reserve district came in stronger than expected. The Dow Jones Industrial Average rose 0.3% at 34,909, the S&P 500 index declined less than 0.1%, while the Nasdaq Composite Index was down 0.3% at 15,120. August retail sales rose 0.7%, defying forecasts for a 0.7% fall. Excluding autos, sales jumped 1.8%, compared with expectations for a rise of 0.2%. Meanwhile, Philadelphia Fed's activity index, which jumped to 30.7 in September from 19.4 a month earlier. At the same time, data showed first-time claims for unemployment benefits rose more than expected in the week ending Sept. 11, though continuing claims fell.
12:05 p.m. Sept. 15, 2021 - By Mark Decambre
S&P 500 posts best daily gain in nearly 3 weeks as energy stocks surge 3.8%, financials and tech stocks also riseU.S. stocks benchmarks closed solidly higher Wednesday, with the S&P 500 putting in the best daily gain since late August, as shares of energy compaies, information technology and financial climbed. The S&P 500 index closed up 0.9% at around 4,480, marking its best point and percentage advance since Aug. 27. The Dow Jones Industrial Average closed up 0.7% at 34,814, while the Nasdaq Composite Index advanced 0.8% at 15,161, marking its best day since Aug. 30. In economic data, the New York Fed's Empire State business conditions index surged 16 points to 34.3 in September, the regional Fed bank said Wednesday.Separately, the import price index dropped 0.3% last month, the government said Wednesday, marking the first decline in 10 months. And data on U.S. industrial production showed a 0.4% rise in August after a 0.8% gain in the prior month, the Federal Reserve reported Wednesday.
5:35 a.m. Sept. 14, 2021 - By Mark Decambre
Dow industrials kick off higher Tuesday after cooler-than-expected consumer-inflation readingU.S. stocks rise modestly higher Tuesday after a report on inflation came in more tame than had originally been expecting, suggesting that the Federal Reserve may be less inclined to rapidly move to taper its monthly asset purchases that had provided liquidity to the COVID stricken market. The Dow Jones Industrial Average traded 71 points, or 0.2%, higher at 34,944, the S&P 500 index climbed 0.3% at 4,484, while the Nasdaq Composite Index advanced 0.4% to reach 15,165. The U.S. consumer price index rose 0.3% in August, while the core reading, which excludes volatile food and energy prices, was up just 0.1%. The CPI increased 5.3% in the August year, compared to expectations for a 5.4% increase, and a rise of 5.5% for the year last month. The year-over-year change in core CPI fell back to 4% from 4.3% in July. While the reading remains elevated, signs of peak inflation could make it less urgent for the Fed to begin scaling back its bond purchases, though investors have largely scaled back expectations for the central bank to lay out a timetable to begin tapering at its meeting next week.
12:08 p.m. Sept. 3, 2021 - By Mark Decambre
Nasdaq Composite marks 35th record close of 2021 but S&P 500, Dow limp lower after weak Friday jobs reportU.S. stock indexes ended mixed Friday, with the Nasdaq booking its 35th record close of 2021, but the other two main bourses closing lower, heading into a three-day Labor Day weekend, after a report on monthly employment from the Labor Department came in weaker than expected, sparking fresh questions about the job market's recovery from the COVID-19 pandemic amid the spread of the delta variant. The Dow Jones Industrial Average closed down 0.2% on the session and booked a weekly decline of 0.24%. The S&P 500 index finished 0.03% lower on Friday but marked a 0.6% gain for the week, while the Nasdaq Composite notched a 0.2% gain for the day, enough for a record closing high---its 35th of the year---contributing to a weekly gain of 1.6%, FactSet data show. Monthly reports from the Labor Department showed that the U.S. economy added 235,000 jobs in August, far fewer than forecast for an increase of 720,000, but the unemployment rate dropped to 5.2% from 5.4% and touched a new pandemic low. The jobs report is creating some uncertainty about the monetary-policy plans for the Federal Reserve. Fed Chairman Jerome Powell has signaled that the central bank would use employment as a key indicator while it considers the end of its pandemic-era measures to add liquidity to markets.
5:39 a.m. Sept. 3, 2021 - By Mark Decambre
Dow slumps at Friday's open after U.S. jobs report comes in weaker than expected U.S. stock benchmarks wobbled lower Friday after the Labor Department's employment report for August showed that a weaker-than-expected 235,000 jobs were created, even as the unemplyoment rate fell to 5.2% from 5.4% in the prior month. The Dow Jones Industrial Average was trading 0.3% lower at 35,340, the S&P 500 index was down 0.3% at 4,523, while the Nasdaq Composite Index was trading 0.3% lower at 15,285 early in the session. Economists surveyed by the Wall Street Journal had forecast on average that 720,000 jobs would be created in August. The data raises some questions about the timing and pace of the Federal Reserve's plans to remove monetary policies that have been in place since the height of the disruptions to financial markets from the COVID-19 pandemic. The lackluster headline employment figure also raises the question of how well the economy is growing jobs in the aftermath of the pandemic amid the emergence of the highly transmissible COVID-19 delta variant.
5:42 a.m. Sept. 2, 2021 - By Mark Decambre
S&P 500, Nasdaq Composite open in record territory after jobless claims report hits pandemic lowThe S&P 500 and the Nasdaq Composite opened in record territory Thursday morning, after weekly data on the labor market came in at a pandemic-era low. Jobless claims, a proxy for layoffs, dropped to 340,000, reaching the lowest level since the COVID-19 pandemic gripped the market in the spring and summer of 2020. The report comes ahead of a highly anticipated report on employment due on Friday, which many think could set the timing for the Federal Reserve's tapering of crisis-era asset purchases that had added liquidity to financial markets. The Dow Jones Industrial Average rose 117 points, or 0.3%, at 35,431. The S&P 500 index climbed 18 points, or 0.4%, to 4,542, and set an intraday record high at 4,542.83, while the Nasdaq Composite index traded 0.4% higher at 15,366, after establishing its own intraday record at 15,380.07. The Nasdaq closed at a record on Wednesday.
12:07 p.m. Sept. 1, 2021 - By Mark Decambre
Nasdaq Composite books 33rd record of 2021 to kick off in September but Dow and S&P 500 are lacklusterThe Nasdaq Composite extended its climb into record territory on Wednesday notching its 33rd record of 2021, despite an August private-sector employment report coming in below forecasts, which puts Friday's monthly government jobs report and the timing for tapering of the Federal Reserve's bond purchases in focus. The Nasdaq Composite closed 0.3% higher at a record close at around 15,309, the S&P 500 index finished less than 0.1% higher at 4,524, on a preliminary basis, missing its Aug. 30 record by 4 points, and the Dow Jones Industrial Average ended lower, down 0.1%, at 35,312, pressured lower by declines in Caterpillar Inc. and Amgen Inc. . The Automatic Data Processing report showed a second straight month of weak jobs creation, with August adding 374,000 private-sector jobs, far below the 600,000 forecast by economists surveyed by The Wall Street Journal. On top of that, July's rise in jobs was reduced to 326,000 from 330,000.
8:57 a.m. Sept. 1, 2021 - By Steve Gelsi
Wells Fargo shares weaken on regulatory frictionWells Fargo & Co. fell 5% on Wednesday following analyst comments on a Bloomberg report that said bank regulators remain unsatisfied with steps the bank has taken to strengthen internal controls and compensate victims of auto insurance and mortgage rate locks. The bank has been working to satisfy the Federal Reserve's 2018 order to keep its assets below $1.95 trillion until it boosts governance and risk controls in the wake of its sales practices. Bloomberg reported on Tuesday that the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau are weighing more potential sanctions. J.P. Morgan analyst Vivek Juneja said Wednesday that Wells Fargo stock, "does not reflect any potential for further regulatory issues or delays...and hence any possibility of fallout from the OCC and CFPB's concerns would impact the stock." Any sizeable fine would reduce share buybacks, especially if the bank has to boost its operational risk capital, he said.
10:36 a.m. Aug. 27, 2021 - By Greg Robb
Fed's Clarida, echoing Powell, backs start of taper this yearThe number two official at the Federal Reserve on Friday backed the start of a taper of bond purchases later this year, in comments that largely echoed Fed Chairman Jerome Powell's Jackson Hole speech. In an interview with CNBC, Fed Vice Chairman Richard Clarida said he expects the trend of "robust" job gains seen this summer to continue and "if that happens I would also support commencing reduction in the pace of our purchases later this year." The economy has added an average of over 800,000 per month over the last three months. Clarida said it wouldn't take the strong pace of 800,000 jobs per month for the Fed to reach its benchmark for tapering of "substantial" progress in the labor markets. "I don't think it takes 800,000 per month, but robust gains," Clarida said.
10:35 a.m. Aug. 27, 2021 - By Greg Robb
Fed's Mester says exactly what month taper starts is not a big deal Cleveland Fed President Loretta Mester said Friday that the exact month of 2021 that the Fed starts to taper its bond purchases is of little consequence for the economy. "Whether it is September [announcement] to start in November or November to start in December, I don't think that is going to make a material difference to the economy," Mester said, in an interview on Bloomberg Television. Fed officials are "all sort of in the ballpark" of tapering some time this year with the view of completing the process in the middle of next year, Mester said. "The bottom line is that we've met the criteria we put out or we're very close to it," Mester said. In the wake of Fed Chairman Jerome Powell's speech in Jackson Hole, market participants and economists have begun to debate whether the Fed would lay out its strategy in September or November. Mester, who earlier Friday said she would be comfortable with a September announcement, said Fed officials will use its next meeting on Sept. 21-22 to "lay out some of our own thinking about the pace and the timing." Officials will continue to watch the downside risk from the coronavirus delta variant, she added. Mester will be a voting member of the Fed's interest rate committee next year.
4:46 a.m. Aug. 27, 2021 - By Greg Robb
Fed's Harker backs starting taper 'sooner rather than later'Philadelphia Fed President Patrick Harker said he wanted to move toward tapering asset purchases "sooner rather than later." In an interview with CNBC, Harker said that he didn't think the $120 billion per month of asset purchases were "doing a whole lot right now." The economy is being held back by supply issues that lower interest rates can't solve, he said. Harker said he was still supportive of "moving the taper along" despite potential damage to the economy from the coronavirus delta variant. The Philadelphia Fed president said the rapid acceleration in inflation seen this year "may not be so transitory." Contacts in his district have said supply chain disruptions facing the home-building sector "won't be solved anytime soon," he said. Harker won't be a voting member of the Fed's interest-rate committee until 2023.
4:11 a.m. Aug. 27, 2021 - By Greg Robb
Fed's Bostic says job data 'in coming months' will decide when to start taperingThe U.S. economy is "very close" to the substantial progress benchmark needed to start tapering its asset purchases but "a lot depends on what happens in the next couple of months," said Atlanta Fed President Raphael Bostic on Friday. In an interview on CNBC, Bostic said he was focused on conditions in the labor market. If job gains continue at the pace seen earlier in the summer, then that will satisfy the conditions for making substantial progress, he said. This suggests Bostic may want to wait until the November meeting to announce the slowing down of purchases. More hawkish Fed officials are pressing for a September announcement. Once the tapering program started, Bostic said he wanted to reduce the purchases "as quickly as possible." The Fed is buying $120 billion per month of Treasurys and mortgage-backed securities to hold down long-term interest rates. Bostic said he didn't think the tapering would upset financial markets. Fed Chairman Jerome Powell will speak about the economy at 10 a.m. Eastern.
12:07 p.m. Aug. 26, 2021 - By Mark Decambre
S&P 500 and Nasdaq end lower for first time in 6 sessions ahead of Powell's Jackson Hole speechU.S. stocks halted a streak of wins for the three main benchmarks on Thursday as investors focused on comments expected from Federal Reserve Chairman Jerome Powell on Friday that could deliver the clearest guideposts for the central bank's plans for tapering stimulus measures. The Dow Jones Industrial Average closed 0.5% lower at 35,213, finishing lower for the first time in five sessions. The S&P 500 index closed down 0.6% at 4,470, while the Nasdaq Composite Index finished 0.6% lower at 14,946, on a preliminary basis. That marked the first lower close for the S&P 500 and the Nasdaq in six sessions, which had both also registered all-time closing highs on Wednesday. In economic data, the Labor Department said first-time jobless claims rose 4,000 last week to 353,000, slightly above forecasts for a reading of 350,000 after dipping to a pandemic low in the previous week. A second estimate of U.S. gross domestic product, the official scorecard of U.S. economic expansion, showed annualized growth of 6.6%, compared with an initial reading of 6.5%. Economists had looked for a revised rate of 6.7%. The slump in equities also happened as the Pentagon confirmed that at least 12 U.S. service members, and scores of others, were killed following two explosions near Hamid Karzai International Airport in Kabul, Afghanistan.
10:19 a.m. Aug. 26, 2021 - By Mark Decambre
U.S. stock market slide to Thursday lows as investors focus on Jackson Hole, and as at least 60 Afghans killed in Kabul attackU.S. stock benchmarks were at session lows Thursday afternoon as investor awaited guidance from Federal Reserve Chairman Jerome Powell at a virtual gathering of central bankers at Jackson Hole, and amid reports that were killed near Kabul airport during U.S.-led evacuation efforts from the Taliban-controlled country. The Dow Jones Industrial Average was down 140 points, or 0.4%, at 35,266, the S&P 500 index was down 0.5% at 4,475, while the Nasdaq Composite Index was trading 0.4% lower at 14,986. Heading to the Friday speech by Powell, money managers have mostly been focused on cues on the central bank's plans for tapering stimulus measures.
7:06 a.m. Aug. 26, 2021 - By Greg Robb
Dallas Fed's Kaplan, seeing 'resiliency' in face of delta, sticks with call for September taper announcementDallas Fed President Rob Kaplan on Thursday said he will press his colleagues to agree to announce a plan to start "tapering" or slowing down asset purchases in September, and to then launch the program in October or November. Kaplan had made headlines last week when he said the spread of the coronavirus delta variant might cause him to rethink this aggressive timetable. In an interview with CNBC, Kaplan said he has reviewed the latest data and wants to go ahead with his initial plan for the September taper announcement because Americans are adjusting to the delta variant. "What we're seeing is consumers and businesses are just becoming more adaptable," Kaplan said. "We're seeing resiliency." Stocks were lower on Thursday with the Dow Jones Industrial Average [s:DJIA] down almost 100 points in late morning trading.
5:32 a.m. Aug. 26, 2021 - By Mark Decambre
Dow drifts higher at Thursday's open but S&P 500 and Nasdaq retreat from records as Jackson Hole loomsU.S. stocks were trading mixed Thursday morning, with the Dow edging up, and the S&P 500 and the Nasdaq Composite pulling back from all-time highs ahead of an important speech from Federal Reserve Chairman Jerome Powell on Friday. The Dow Jones Industrial Average [: DJIA] rose 45 points, or 0.1%, at 35,441, the S&P 500 index declined less than 0.1% at 4,492, after the broad-market index put in its 51st record of 2021, while the Nasdaq Composite Index slipped less than 0.1% at 15,040, following its 30th record high of 2021 on Wednesday. In economic data, an updated reading of U.S. gross domestic prodict, or GDP, showed that the U.S. economy grew at an annualized rate of 6.6% in the second quarter, an upward revision from the initial reading at 6.5%, but below economists average estimates of 6.7% as surveyed by Dow Jones. Weekly jobless claims, meanwhile, came in at 353,000, hanging around a pandemic low.
6:11 a.m. Aug. 24, 2021 - By Mark Decambre
Nasdaq Composite carves out fresh intraday record at Tuesday's open as stock market clambers higher U.S. stocks on Tuesday grinded higher toward all-time highs as investors responded positively to strong corporate earnings and the economic rebound against COVID-19, despite the spread of the delta variant of the disease. The Dow Jones Industrial Average gained 0.1% to 35,382, the S&P 500 index rose 0.1% and climbed near a record high at 4,489.88, and the Nasdaq Composite Index rose 0.3%, after carving out an intraday record at 15,003.20. In corporate news, Best Buy Co. Inc. shares were in focus after the consumer electronics retailer reported second-quarter earnings that beat expectations and raised its same-store sales guidance for the year. At the end of the week, Federal Reserve Chairman Jerome Powell is expected to deliver a speech that might provide some insights on the timing and scope of tapering asset purchases for the central bank.
9:53 a.m. Aug. 23, 2021 - By Mark Decambre
UBS Wealth Management lifts S&P 500 2021 target to 4,600 and forecasts index to hit 5,000 by end of next yearUBS Global Wealth Management said it raised its S&P 500 targets on the back of strong quarterly results for U.S. corporations and a likely easy-money posture from the Federal Reserve. "Solid economic and corporate profit growth, in conjunction with a still-accommodative Fed, means that the environment for stocks remains favorable," wrote David Lefkowitz, head of equities Americas at UBS Global Wealth Management, in a Monday research note. The wealth management unit has raised its targets for the S&P 500 2021 to 4,600 from, 4,500 and has initiated a target of 5,000 for the broad-market index for the end of 2022 after raising its second-half forecast for that year to 4,800 from 4,650. The upgrade comes as the S&P 500 carved out an intraday record on Monday, up more than 1% to 4,489.88. Meanwhile, the Nasdaq Composite Index was surging 1.6% at around 14,944, at last check, after logging its own intraday record at 14,951.88. The Dow Jones Industrial Average was trading 0.7% higher at 35,378.
1:20 p.m. Aug. 20, 2021 - By Mark Decambre
Fed regional bank shifts Jackson Hole symposium to virtual event: reports The highly anticipated Jackson Hole gathering of monetary policy makers will be held entirely remote, according to reports. reported that the Federal Reserve Bank of Kansas City said the annual symposium in Jackson Hole, Wyo., which was scheduled to be held in-person on Aug. 26-28, will be held virtually, as the delta variant of COVID-19 intensifies.
12:09 p.m. Aug. 20, 2021 - By Mark Decambre
Dow snaps 3-session skid to end above 35,000 as tech rallies, but stocks book weekly losses as delta variant hits confidenceU.S. stocks on Friday booked a strong finish to an otherwise turbulent week that saw all three main equity index log weekly losses. The Dow Jones Industrial Average rose by about 225 points, or 0.7%, ending higher for the first time in four sessions, with a weekly decline of 1.1%. The S&P 500 index closed 0.8% higher to around 4,442, with a weekly slide of 0.6%. The Nasdaq Composite Index enjoyed the best session on Friday, rising 1.2%, helping to cut its weekly slide to 0.7%. The week ended higher belieing lingering concerns about the delta variant's impact on the economy. One Federal Reserve policy maker said he may rethink his call for a tapering of bond purchases to start in October, if the variant slows economy. In an interview with Fox Business Network on Friday, Federal Reserve Bank of Dallas President Robert Kaplan said the variant has caused him to have an open mind about the path of monetary policy. He called it "the big imponderable"
12:10 p.m. Aug. 19, 2021 - By Mark Decambre
Dow logs 3rd straight decline but small-caps take it on the chin Thursday, as S&P 500 and Nasdaq halt skidsU.S. stock benchmarks on Thursday finished a turbulent session mostly flat and the S&P 500 and the Nasdaq Composite eked out small gains to halt a multiday skid. However, the Dow Jones Industrial Averaged booked its third straight drop, representing its longest bout of losses since the five-session period ended June 18. The S&P 500 index closed up 0.1% at 4,406, finishing higher for the first time in three sessions, while the Nasdaq Composite closed up 0.1% at around 14,542, booking its first gain in four sessions. The Dow , however, declined 0.2% to 34,894, weighed by declines in Boeing Co. , Caterpillar Inc. and Goldman Sachs Group Inc. . Investors have grown cautious on stocks as concerns about the delta variant of COVID-19 threaten to dent the global economic recovery. Investors also are worried about the Federal Reserve's plans to taper its monthly purchases of bonds. But it was small-cap stocks that saw outsize losses on Thursday. The Russell 2000 Index of small-cap stocks finished down 1.3%. The performance for markets came even as weekly data showed that jobless claims fell to a pandemic low of 348,000 last week.
5:37 a.m. Aug. 19, 2021 - By Mark Decambre
Dow industrials sink at Thursday's open, on pace for longest string of losses in 2 monthsU.S. stocks on Thursday morning slumped, a day after minutes of the Federal Reserve's July meeting showed the central bank was preparing to pull back on its stimulus measures this year as worries rise over the spread of the delta variant of the coronavirus that causes COVID-19. The Dow Jones Industrial Average was off 154 points, or 0.5%, at 34,805, the S&P 500 index was down 0.5% at 4,379, while the Nasdaq Composite Index was trading 0.5% lower at around 14,460. The Dow and S&P 500 were on track to notch their third straight decline, which would mark the blue-chip index's longest string of losses since June 18 and the longest period of declines for the S&P 500 since July 19. In corporate news, Shares of Robinhood Markets Inc. were in focus after the online broker's cautious outlook on the third quarter. See: Robinhood earnings show a company reliant on quieting retail traders and volatile crypto pricing. In economic news, the Philadelphia Fed said its manufacturing index fell to 19.4 in August from 21.9 a month earlier, while a reading of first-time claims for U.S. unemployment benefits fell more than expected last week to 348,000, a pandemic low. Economists had expected 365,000 initial claims.
9:30 a.m. Aug. 11, 2021 - By Greg Robb
Fed's Kaplan says central bank should announce taper plans in SeptemberDallas Fed President Rob Kaplan said Wednesday that he will press his colleagues at the central bank to announce a plan to taper bond purchases at its next meeting in late September. In an interview on CNBC, Kaplan said he wanted the slow down in purchases to start in October and last until June. Kaplan has been pressing his colleagues to start to pull back on its $120 billion in monthly bond and mortgage-related securities since late April. Asked if he had a lot of support from his colleagues for his position, Kaplan said there was a "range of views" but the committee is in a much better place than it was two months. Kaplan said the asset purchases don't help the economy now because the trouble is with the supply of goods and workers. Asset purchases work best to spur demand, he said. Kaplan ducked questions about whether his timetable meant that the Fed will raise interest rates as soon as next year. He said he was "divorcing" his views on tapering from his decisions on when to hike rates.
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