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Assessing Earnings, Inflation & Growth

  • Assessing Earnings, Inflation & Growth Assessing Earnings, Inflation & Growth 10:26
    How the Government Creates Stimulus Money How the Government Creates Stimulus Money 4:52
    Gearing Up for Big Tech Earnings Gearing Up for Big Tech Earnings 9:48
    Cannabis Industry Faces Obstacles to Banking, but That May Be Changing Cannabis Industry Faces Obstacles to Banking, but That May Be Changing 5:16
11:11 a.m. Nov. 22, 2021 - By Christine Idzelis
Dow clings to gains as U.S. stocks end mostly lower Monday after Biden picks Powell as Fed ChairThe Dow Jones Industrial Average closed slightly higher Monday, clinging to gains after President Joe Biden announced that he picked Federal Reserve Chair Jerome Powell to serve a second term. The Dow gained less than 0.1%, while the Nasdaq Composite , a technology-heavy index viewed as sensitive to moves in interest rates, closed about 1.3% lower, and the S&P 500 slipped about 0.3%, according to preliminary data from FactSet. Although the S&P 500 slipped slightly, the index's financial sector rose more than 1%, FactSet data show. Shares of Wall Street banks rallied Monday, with Wells Fargo & Co. rising about 3% and Goldman Sachs Group Inc. , JPMorgan Chase & Co. and Morgan Stanley all rising more than 2%, preliminary data from FactSet show. The yield on the 10-year Treasury note rose 9 basis points to 1.625%, according to Dow Jones Market Data.
10:46 a.m. Nov. 22, 2021 - By Christine Idzelis
U.S. stock indexes trade mixed late afternoon Monday after Biden picks Powell to lead FedU.S. stock indexes were trading mixed heading toward the closing bell Monday, with the S&P 500 and Dow Jones Industrial Average each climbing higher while the Nasdaq Composite was down, after the White House announced earlier in the day that Federal Reserve Chairman to serve a second term. The Dow was up 0.8%, the S&P 500 was 0.6% higher and the Nasdaq was off about 0.2%, according to FactSet data, at last check. President Joe Biden's nominations of Powell to lead the Fed as Chair and Fed Gov. Lael Brainard to fill the position of Vice Chair, must be confirmed by the Senate. A sharp rise in shares of Wall Street banks Goldman Sachs Group Inc. and JPMorgan Chase & Co. helped fuel the Dow's rise Monday afternoon. Meanwhile, the technology-laden Nasdaq, seen as sensitive to interest rates moves, slid as the yield on the 10-year Treasury note rose to around 1.62%.
9:31 a.m. Nov. 4, 2021 - By Tomi Kilgore
Bank stocks take a broad beating as Treasury yields fall in wake of Fed taper talkFinancial stocks were suffering a broad beating Thursday, as in the wake of the Federal Reserve's detailing of its , and as the Bank of England held off on an expected rate hike. The SPDR Financial Select Sector ETF dropped 2.0% with 61 of 65 equity components losing ground. within the Dow Jones Industrial Average , Goldman Sachs Group Inc.'s stock was the biggest drag, as it fell $13.49, or 3.2%. Elsewhere, shares of JPMorgan Chase & Co. lost 2.3%, Bank of America Corp. dropped 3.0%, Citigroup Inc. slid 3.4% and Wells Fargo & Go. shed 2.9%. Meanwhile, the yield on the 10-year Treasury note declined 6.0 basis points to 1.519%. Lower long-term interest rates could hurt bank profits, as the spread between what banks can earn on longer-term assets, such as loans, that are funded with shorter-term liabilities is narrowed.
11:15 a.m. Oct. 27, 2021 - By Mark Decambre
Dow closes 266 points lower, halts string of gains as Nasdaq ekes out 3rd straight rise and Treasurys log steepest yield slide in 3 monthsThe Dow and S&P 500 closed lower Wednesday, ending a string of gains for the equity benchmarks that have been mostly rising to all-time highs on the back of upbeat quarterly results from American corporations. The Dow Jones Industrial Average closed down 266 points, or 0.7%, at about 35,491, the S&P 500 index closed 0.5% lower at 4,552. The Nasdaq Composite Index finished the session nearly unchanged at 15,236, as a retreat in yields for the 10-year Treasury note and the 30-year Treasury bond hit lows not seen since July 19, according to Dow Jones Market Data. Lower yields can buoy yield-sensitive sectors like information technology and investment factors like growth. In corporate results, Microsoft Corp. reported quarterly earnings that shot over $20 billion for the first time, late Tuesday, which helped to limit declines in the broader market and supported the tech sector on Wednesday. Microsoft shares rose 4.2% to $323.17, notching a record close, according to Dow Jones Market Data. Meanwhile, in a surprise move Wednesday, the Bank of Canada said it would abruptly end its bond-buying program and warned of prolonged inflation through 2023, while also signaling it may hike interest rates sooner than expected, the second quarter of 2022.
9:20 a.m. Oct. 27, 2021 - By Mark Decambre
Long-dated Treasury yields on track for biggest daily drop in over 3 monthsLong-dated Treasury yields on Wednesday were experiencing the biggest slide in months, with buying in long-dated bond yields fueled by concerns about the economic outlook, against expectations that the Federal Reserve will commence the reduction of monthly asset purchases, as early as next week, with an eye toward eventually hiking interest rates, which currently stand at a range between 0% and 0.25%. The 10-year Treasury note yield was 8.3 basis points lower at around 1.538% at last check Wednesday, compared with its 3 p.m. Eastern Time levels. The daily slide for the benchmark Treasury rate, used to price everything from mortgages to car loans, would mark the steepest one-day slide since July 19, according to Dow Jones Market Data. Meanwhile, the 30-year Treasury bond rate was at 1.953%, off 9.8 basis points, which would also mark its sharpest yield slide since July 19.
7:39 a.m. Oct. 22, 2021 - By Mark Decambre
Stock market briefly takes a U-turn lower Friday as Tepper says market isn't a great investment now, Powell hints a rate hikeU.S. stock indexes were turning lower midday Friday, with the main benchmarks retreating from records to end an otherwise strong week of gains, as investors digested comments from Federal Reserve Chairman Jerome Powell. Some of the shift lower in sentiment intraday als was blamed on comments from hedge-fund luminary David Tepper, who said he didn't think stocks were "a great investment right here," in an interview with CNBC on Friday. "I just don't know how interest rates are going to behave next year... I don't think there's any great asset classes right now... I don't love stocks," he told the business network. The Dow Jones Industrial Average [ : DJIA] was up less than 0.1%, while the S&P 500 index was off 0.3% and the Nasdaq Composite Index was nearly 1% lower. Powell told the BIS that the job market could reach maximum employment next year, achieving one of the Fed's central mandates, which he said would meet one requirement for a rate hike.
3:13 a.m. Oct. 18, 2021 - Barrons.com
Assessing Earnings, Inflation & GrowthBarron's Carleton English analyzes big bank earnings and Guy Lebas, Janney Montgomery Scott's chief fixed income strategist, discusses treasury yields, inflation and interest rates. Plus, Omar Aguilar, Schwab Asset Management's CIO, offers his outlook for wage growth.
11:45 p.m. Oct. 14, 2021 - By Steve Goldstein
Morgan Stanley lowered to sector perform at RBC Morgan Stanley was downgraded to sector perform from outperform at RBC Capital Markets. "Its performance over the last 18 months has been very strong due to better than expected core results (driven by the current bull market) and the successful acquisitions of E*TRADE and Eaton Vance. We believe the outlook for the company is still healthy but with the likelihood of higher interest rates over the next 12-18 months, traditional commercial banks will likely outperform the investment banks including MS, in our view," said analyst Gerard Cassidy in a note to clients. Morgan Stanley shares have gained 47% this year.
1:33 a.m. Sept. 29, 2021 - By Steve Gelsi
Jefferies lifts financial stock rating to overweight from market weightJefferies equity strategist Steven G. DeSanctis on Tuesday lifted the firm's rating on financial stocks to overweight from market weight in a reaction to bearish sentiment around the sector and the prospect of higher interest rates. "Sentiment is downright awful," he said. "When flows are this bad, the group rebounds and delivers better than average performance." The sector offers cheap valuations currently and may be helped by GDP growth of 4% next year. "We think '22 earnings numbers are very conservative and should move up, keeping the revision ratios above average," DeSanctis said. M&A activity remains at record levels and could boost performance. Among the stocks in the group, Jefferies spotlighted Ares Management , Carlyle Group , First Cash Inc. , Hancock Whitney , LPL Financial , OneMain Holdings , Signature Bank , SLM Corp. , Sterling Bancorp , Western Alliance Bancorp and Wintrust Financial . The SPDR Regional Banking ETF is up 30.9% so far this year, compared to a rise of 16.6% by the S&P 500 .
11:13 a.m. Sept. 24, 2021 - By Mark Decambre
Dow, S&P 500 shake off Evergrande-inspired shocks, Fed tapering talk to end week solidly higher The Dow Jones Industrial Average and the S&P 500 ended higher Friday and the broader market notched weekly gains, capping a wild stretch for equity markets that was initially marked by a bout of uncertainty over the potential collapse of China property developer Evergrande. The outlook for the developer, with some $300 billion in debt, remains uncertain. Still, the Dow closed up 0.1% at around 34,798, the S&P 500 index finished up 0.2% higher at 4,455, logging weekly gains of 0.6% and 0.5%, respectively, FactSet data show. The Nasdaq Composite Index finished the day lower, of less than 0.1%, as the benchmark 10-year yield rose to around 1.45%, contributing to a 9 basis point jump for the benchmark debt and marking the largest weekly rate rise since March 19, Dow Jones Market Data show. The yield-sensitive Nasdaq Composite still managed to end the week in positive territory. On the data front, U.S. new-home sales increased 1.5% to an annual rate of 740,000, the government said Friday. In corporate news, Nike Inc. shares fell about 6% after the sportswear maker reported quarterly sales that fell short of Wall Street expectations, and said wages and overhead expenses weighed on revenue. For the week, the energy sector produced the best gain of the S&P 500's 11, rising 4.7%, while financials rose 2.2%. On Wednesday, the Fed's Jerome Powell signaled that the central bank could soon end a key aspect of its market-supportive programs and aim to lift interest rates as early as 2022.
11:10 a.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.
9:08 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.
3:46 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.
3:11 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.
8:30 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.
11:08 a.m. July 28, 2021 - By Mark Decambre
Dow, S&P 500 log back-to-back losses as Fed says economy has 'made progress' from COVID but not enoughThe Nasdaq Composite on Wednededay ended solidly higher but the broader market closed weaker as the Federal Reserve signaled that the countdown has begun on scaling back its massive support for the U.S. economy, but a decision still appeared a ways away. The Dow Jones Industrial Average closed down by about 128 points, or 0.4%, at 34,930, the S&P 500 index was virtually flat, but in negative territory, to end at around 4,400. The benchmarks declined for the second straight session. The Nasdaq , meanwhile, closed up 0.7% at roughly 14,762. The Fed kept interest rates at a range between 0% and 0.25%, as expected, and Powell indicated that the central bank was in no immediate rush to scale back on its monthly purchases of $120 billion in Treasurys and mortgage-backed securities, which the Chairman said would continue until "substantial further progress" was made toward the Fed's goals of low unemployment and inflation reaching 2%. The Fed statement said that the rate-setting Federal Open Market Committe "will continue to assess progress in coming meetings." Meanwhile, the small-capitalization Russell 2000 index finished sharply higher, up around 1.6%, at last check. Separately, the 10-year Treasury note was up 2.4 basis points at 1.259%.
9:21 a.m. July 26, 2021 - Barrons.com
Gearing Up for Big Tech EarningsKatie Stockton, founder of Fairlead Strategies, discusses where investors can still find value amid record highs and ongoing volatility. Plus, Michael Sonnenfeldt, founder of Tiger 21, on the investment strategies of today's most successful entrepreneurs. And, Alexandra Wilson-Elizondo of Mackay Shields analyzes how to maneuver today's credit markets.
1:21 a.m. July 20, 2021 - By Tomi Kilgore
Synchrony Financial profit rises above expectations, but NII falls shortSynchrony Financial reported Tuesday a second-quarter profit that rose well above expectations, boosted by a reserve release of nearly $900 million, while net interest income fell below forecasts. The consumer financial services company's stock was still inactive in premarket trading. Net income rose to $1.23 billion, or $2.12 a share, from $37 million, or 6 cents a share, in the year-ago period. The FactSet consensus for earnings per share was $1.39. Net interest income (NII) fell 2.5% to $3.31 billion, while the FactSet consensus was for an increase to $3.47 billion, as the 25 basis point increase in net interest margin to 13.78% fell short of expectations of 14.01%. Purchase volume increased 35% to $42.1 billion, loan receivables increased by $100 million to $78.4 billion and average active accounts grew 2% to 65.8 million. Provision for credit losses was down 112%, driven by $878 million reserve release and as net charge-offs as a percent of average loan receivables fell to 3.57% from 5.35%. "Customer payment rates continue to remain elevated, however, due to the impact of government stimulus and industry-wide forbearance measures," said Chief Financial Officer Brian Wenzel. "While this hindered loan receivables growth and yield, it supported continued strength in credit performance and led to lower provision for credit losses." The stock has rallied 29.1% year to date, while the SPDR Financial Select Sector ETF has advanced 19.1% and the S&P 500 has gained 13.4%.
3:05 a.m. July 14, 2021 - By Ciara Linnane
Wells Fargo Q2 earnings boosted by $1.6 billion release of loan loss reservesWells Fargo & Co. blew past earnings estimates for the second quarter, as it released 1.6 billion from loan loss reserves thanks to a continued economic recovery from the coronavirus pandemic. The San Francisco-based lender posted net income of $6.04 billion, or $1.38 a share, for the quarter, after a loss of $3.846 billion, or $1.01 a share, in the year-earlier quarter. Revenue rose to $20.270 billion from $18.286 billion. The FactSet consensus was for EPS of 98 cents and revenue of $17.757 billion. "Wells Fargo benefited from the continued economic recovery, strong markets that helped drive gains in our affiliated venture capital businesses, and our progress on improving efficiency, but the headwinds of low interest rates and tepid loan demand remained," Chief Executive Charlie Scharf said in a statement. Net interest income fell 11% to $8.800 billion, below the $8.935 billion FactSet consensus, while noninterest income rose 37% to $11.470 billion, above the $8.847 billion FactSet consensus. In the consumer banking division, home lending rose 40% to 2.072 billion, while credit card lending was up 14% to $1.363 billion. In the corporate and investment bank, revenue fell 18% with markets revenue down 45% on lower trading activity across most asset classes mostly because of market conditions, the bank said. Wealth management revenue rose 10% to $3.536 billion. Following the recent Federal Reserve stress tests, Wells is expecting to raise its third-quarter dividend to 20 cents a share from 10 cents a share, subject to board approval. It plans to repurchase about $18 billion in shares during the four-quarter period starting in the third quarter. Shares were up 0.6% premarket and have gained 43% in the year to date, while the S&P 500 has gained 16%.
3:35 a.m. July 8, 2021 - By Tomi Kilgore
Financial stocks set for broad selloff as Treasury yields keep fallingThe financial sector is bracing for a broad selloff Thursday, amid weakness in the broader market and continued declines in Treasury yields. The SPDR Financial Select Sector ETF slumped 1.8% in premarket trading, enough to pace the declines in all of the SPDR ETFs tracking the S&P 500's 11 sectors. Among the financial ETF's most heavily weighted components, shares of Berkshire Hathaway Inc. fell 1.4%, J.P. Morgan Chase & Co. shed 2.1%, Bank of America Corp. dropped 2.6%, Wells Fargo & Co. gave up 2.7% and Citigroup Inc. slid 2.4%. The declines come as S&P 500 futures slumped 1.4% and the yield on the 10-year Treasury note was down 4.8 basis points to a 5-month low of 1.271%, amid concerns over future economic growth. Falling longer-term interest rates can hurt bank profits, as they reduce the spread banks earn on longer-term assets, such as loans, which are funded by shorter-term liabilities.
11:38 a.m. June 26, 2021 - By MarketWatch
These money and investing tips can help keep your portfolio in the sun if stocks retreat to the shadeThese money and investing stories were popular with MarketWatch readers over the past week.
9:52 a.m. June 25, 2021 - By Tomi Kilgore
Financial stocks lead S&P 500 sectors higher as inflation data boosts Treasury yieldsThe financial sector was the best performing of the S&P 500 11 stock sectors Friday, after upbeat economic data pushed Treasury yields higher. The SPDR Financial Select Sector ETF rallied 1.2% in afternoon trading, with 61 of 65 equity components trading higher, while the S&P 500 edged up 0.3%. Among the ETFs top holdings, shares of Berkshire Hathaway Inc. tacked on 0.8%, J.P. Morgan Chase & Co. gained 1.0%, Bank of America Corp. advanced 2.1%, Wells Fargo & Co. climbed 2.8% and Citigroup Inc. edged up 0.4%. The sector's rally comes as rose 5.4 basis points to 1.541% after data showing the in May marked a third straight big increase. Bank profits can benefit from higher longer-term interest rates, because that can increase the spread between what banks earn on longer-term assets, such as loans, that are funded by shorter-term liabilities.
6:42 a.m. June 18, 2021 - By Mark Decambre
Dow futures sink over 300 points as Fed's Bullard estimates that initial rate increase could happen in late 2022U.S. stock-index futures saw losses deepen Friday morning as St. Louis Federal Reserve President Jim Bullard said, during a CNBC interview, that the central bank could lift benchmark interest rates, which currently stand at a range between 0% and 0.25%, as early as late next year. Futures for the Dow Jones Industrial Average were down more than 300 points, or 1%, at 33,366, those for the S&P 500 index were off 0.8% at 4,180, while Nasdaq-100 futures were trading 0.6% lower at 14,068. The Dow and S&P 500 are headed for weekly declines, while the Nasdaq Composite Index was headed for a weekly gain after the Federal Reserve delivered its most recent policy update on Wednesday. Bullard's comments mark the first from a Fed member since the conclusion of its rate-setting meeting. Bullard is not currently a member of the Federal Open Market Committee, which helps to set rates. Bullard told CNBC that he thinks "it's natural that we've tilted a little more hawkish to contain inflationary pressures." He also said that comments from Fed Chairman Jerome Powell have opened the door to tapering the Fed's $120 billion montly asset-purchases, which include $40 billion of mortgage-backed securities.
6:09 a.m. June 18, 2021 - By Mark Decambre
S&P 500 skids 1% lower Friday, putting stock-market benchmark on brink off first close below 50-day average since MarchThe S&P 500 index on Friday was on the verge of marking its firt close below its short-term moving average since early March, amid a sharp slump in the stock market. The S&P 500 index was trading down 1% at 4,177, with its 50-day moving average standing at 4.181.95, according to FactSet data. A close below that level would mark the first such decline since March 8, according to Dow Jones Market Data. The Dow Jones Industrial Average was off 1.5%, down more than 500 points, while the Nasdaq Composite Index was trading 0.7% lower at 14,066. The decline for the market accelerated after St. Louis Federal Reserve President James Bullard said that he saw benchmark interest rates rising as soon as late 2022, in an interview on CNBC Friday morning. Market participants use moving averages to help gauge the long-term and short-term momentum in an asset.
4:40 a.m. June 17, 2021 - By Mark Decambre
U.S. stock market attempts to claw back gains Thursday as investors weigh hawkish Fed and punchy U.S. dollarU.S. stock benchmarks struggled for altitude Thursday morning, a day after the Federal Reserve signaled its intention to raise interest rates sooner than previously forecast and upped its forecast for inflation and economic growth. The Dow Jones Industrial Average , which closed below its 50-day moving average on wednesday for the first time since early March, was inching higher at 34,059, up 25 points, or less than 0.1%; the S&P 500 index was rising to 4,229, up 4 points, buoyed by gains in financials and consumer staples. The technology-laden Nasdaq Composite Index was trading at 14,059, up 0.1%, as rates for benchmark government debt remained somewhat buoyant, weighing on yield-sensitive sectors. On Wednesday, the Fed's median projection showed that policy makers see a lift to benchmark rates, currently at a range between 0% and 0.25%, to 0.6% by the end of 2023, sooner than they anticipated in March. Thursday's moves come as the U.S. dollar has made bullish post-Fed moves. The ICE U.S. Dollar Index , a gauge of the dollar against a half-dozen currencies, was up 0.6% at 91.69.
9:04 a.m. June 16, 2021 - By Mark Decambre
Dow losses deepen, benchmark down around 300 points as Fed refers to inflation's rise as transitoryU.S. stocks saw losses gather some steam Wednesday afternoon after the Federal Reserve, kept benchmark interest rates steady, as expected, but referred to inflation as transitory and said that it would need substantial further progress before tapering its asset-purchase program, which is currently running at $120 billion a month. The Dow Jones Industrial Average was down nearly 300 points, or 0.9%, at 33,999 the S&P 500 index was off 0.7% at 4,217, while the Nasdaq Composite Index was off 0.6% at 13,995.
7:18 a.m. May 8, 2021 - By Alessandra Malito
We have $190,000 in retirement savings and want to use the COVID-related distribution rules to pay off $40,000 in debt — should we? The CARES Act allows some savers Americans to take money out of their retirement accounts — but advisers say they should proceed with cautionThe CARES Act allows some savers to take money out of their retirement accounts — but advisers say they should proceed with caution.
4:14 a.m. May 7, 2021 - By Tomi Kilgore
J.P. Morgan, Goldman Sachs stocks lead Dow losers as yields fall after disappointing jobs data Bank stocks took a dive in premarket trading Friday, as Treasury yields sank in the wake of disappointing government jobs data. J.P. Morgan Chase & Co.'s stock fell 1.6% to pace the Dow Jones Industrial Average's early decliners, followed by the 1.4% drop in Goldman Sachs Group Inc.'s stock . The implied price declines of those two stocks would shave about 50 points off the Dow's price, while Dow futures declined 16 points, or 0.1%. Elsewhere, shares of Bank of America Corp. were down 1.7%, Citigroup Inc. shed 1.4% and Wells Fargo & Co. gave up 1.3%, while the SPDR Financial Select Sector ETF was down 1.1%. The yield on the 10-year Treasury note dropped 4.7 basis points to a 2-month low of 1.515%, after the and the unemployment rate surprisingly rose. Lower longer-term interest rates can hurt bank profits, as it narrows the spread they can earn on longer-term assets, like loans, that are funded with shorter-term liabilities.
11:20 a.m. May 5, 2021 - By Greg Robb
Fed Vice Chairman Clarida says it is not time yet to talk about taperingFederal Reserve Vice Chairman Richard Clarida on Wednesday said it was not time yet to begin conversations about possibly scaling back the central bank's asset purchases. The Fed is buying $120 billion per month of Treasurys and mortgage-related securities as well as keeping interest rates close to zero in order to stimulate the economy. The Fed has said it wants to see "substantial further progress" on its goals of full employment and stable inflation before tapering. Asked when the Fed should start "talking about talking about" tapering, Clarida replied: "We don't think so right now." Dallas Fed President Robert Kaplan said earlier this week it was time to start the discussion about tapering. Several Fed officials speaking on Wednesday have all disagreed with Kaplan. "We'll get more data -and as we move through the year- we will be able to make a judgement on 'substantial further progress,' but we're not there yet," Clarida said.
4:30 a.m. May 5, 2021 - By Greg Robb
Fed's Evans says chances of persistently higher inflation are 'remote'The chances that the $2.8 trillion stimulus measures passed by Congress since December will overheat the economy and generate higher inflation are remote, said Chicago Fed President Charles Evans on Wednesday. Inflation is likely to pick up in coming months as people resume normal activities and some bottlenecks emerge but simulations performed by economists at the Chicago Fed see inflation topping out at less than a full percentage point and dissipating in two or three years, Evans said in a speech to the Levy Economics Institute of Bard College. "We still have some ways to go before we meet our goals" of full employment and stable 2% average inflation, Evans said. As a result, Fed policy "is likely on hold for some time," he added. Labor market conditions required to move interest rates off zero or to start to taper the $120 billion in monthly asset purchases "will not be met for a while," he said.
11:08 a.m. May 2, 2021 - By Quentin Fottrell
I saved $1.1M for retirement, earn $128K and have $22K in cash. Can I afford my dream car — an $80K Nissan GT-R? ‘I’m 41 and single with no kids, and have always been a big saver’‘I’m 41 and single with no kids, and have always been a big saver.’
4:53 p.m. April 28, 2021 - MarketWatch.com
Biden pitches families plan, infrastructure and calls on wealthy to pay ‘fair share’ in first speech to Congress: live blog and video State-of-the-Union-style speech will also focus on policing, immigrationPresident Joe Biden gives his first big speech to Congress on Wednesday night, in a State-of-the-Union-style address in which he’ll make the case to voters for his newly unveiled safety-net and education proposals.
9:50 a.m. April 17, 2021 - By MarketWatch
These money and investing tips can help you stay upright against the market’s headwindsThese money and investing stories were popular with MarketWatch readers over the past week.
11:26 a.m. April 16, 2021 - Barrons.com
Franklin Templeton's View on RatesSonal Desai, CIO for Franklin Templeton's Fixed Income Group, discusses her expectations for U.S. and global interest rates.
1:44 a.m. April 16, 2021 - By Tomi Kilgore
Bank of New York Mellon profit and revenue fall, but beat expectationsShares of Bank of New York Mellon Corp. were indicated up fractionally in premarket trading Friday, after the bank reported first-quarter profit and revenue that fell from a year ago, given the impact of low interest rates, but topped expectations. Net income declined to $858 million, or 97 cents a share, from $944 million, or $1.05 a share, in the year-ago period. The FactSet consensus for earnings per share was 87 cents. Total revenue fell 5% to $3.92 billion, above the FactSet consensus of $3.84 billion, as total fee revenue fell 1% to $3.27 billion and net interest revenue dropped 20% to $655 million. Total revenue for the bank's largest, investment services business fell 8% to $2.99 billion, while investment and wealth management revenue rose 10% to $991 million. The bank resumed share repurchases during the quarter, and spent $699 million to buy back 16.8 million shares. The stock has advanced 13.1% year to date through Thursday, while the SPDR Financial Select Sector ETF has rallied 19.2% and the S&P 500 has gained 11.0%.
1:30 a.m. April 15, 2021 - By Tomi Kilgore
Bank of America stock jumps toward 13-year high after profit beat, new $25 billion buyback programShares of Bank of America Corp. rose 1.8% toward a 13-year high in premarket trading Thursday, after the bank reported profit that more than doubled and beat expectations, citing strong growth in capital markets and lower credit costs, and set a $25 billion stock repurchase program. Net income rose to $8.1 billion, or 86 cents a share, from $4.0 billion, or 40 cents a share, in the year-ago period. The FactSet consensus for earnings per share was 66 cents. Total revenue was unchanged at $22.8 billion, but topped the FactSet consensus of $21.90 billion, while net interest income (NII) dropped 15.9% to $10.20 billion to fall shy of expectations of $10.27 billion. Consumer banking revenue fell 12% to $8.1 billion, as lower rates led to lower NII, while global markets revenue climbed 19% to $6.2 billion. Provision for credit losses improved to a benefit of $1.9 billion from a cost of $4.8 billion. Separately, the bank said it has authorized the repurchase of up to $25 billion worth of common stock over time. That represents about 7.3% of Bank of America's market capitalization of $344.29 billion. The stock, which is on track to open at the highest price seen since May 2008, has rallied 20.8% over the past three months through Wednesday, while the S&P 500 has gained 9.5%.
3:06 a.m. April 14, 2021 - By Ciara Linnane
Wells Fargo earnings boosted by release of $1.6 billion in loan loss reservesWells Fargo & Co. posted stronger-than-expected profit and revenue for the first quarter, boosted by the release of $1.6 billion in its reserves for credit losses. The San Francisco-based bank posted net income of $4.742 billion, or $1.05 a share, in the quarter, up from $653 million, or 1 cent a share, in the year-earlier period. Revenue rose to $18.063 billion from $17.717 billion. The FactSet consensus was for EPS of 71 cents and revenue of $17.518 billion. Chief Executive Charlie Scharf said earnings were boosted by an improving U.S. economy as well as the big reduction in loan loss reserves as loans did not sour during the pandemic as feared. "Charge-offs are at historic lows and we are making changes to improve our operations and efficiency, but low interest rates and tepid loan demand continued to be a headwind for us in the quarter," Scharf said in a statement. Net interest income fell 22%, mostly due to low interest rates. Noninterest income rose 45%, as the year-earlier period included securities impairments and lower deferred compensation plan investment results, mostly due to lower market valuations at the start of the coronavirus pandemic. Revenue at the consumer and small business segment was down 6%, while home lending was up 19%. Credit card revenue fell 2%, due to lower balances on elevated payment rates. Auto revenue rose 6%, while personal lending was down 18%. Corporate and investment banking revenue fell 6%. Markets revenue rose 19%, on higher demand for asset-backed finance products, other credit products and municipal bonds, which were offset by lower demand for rates products and lower revenue in equities and commodities. Shares were slightly lower premarket, but have gained 31%n the year to date, while the S&P 500 has gained 10%.
2:01 a.m. April 14, 2021 - By Tomi Kilgore
J.P. Morgan net profit soars 5-fold to $14.3 billion and revenue tops expectations, but stock slipsShares of J.P. Morgan Chase & Co. fell 1.1% in premarket trading Wednesday, even as the banking giant reported first-quarter profit and revenue that beat expectations, as results benefited from an improving economy and credit reserve releases of $5.2 billion. Net income rose to $14.30 billion, or $4.50 a share, from $2.87 billion, or 78 cents a share, in the same period a year ago. Excluding non-recurring items, such as credit reserve releases, adjusted EPS came to $3.31, above the FactSet consensus of $3.09. Net revenue rose 14% to $33.1 billion, above the FactSet consensus of $30.5 billion. Consumer and community banking revenue fell 6% to $12.52 billion, matching the FactSet consensus, while corporate and investment bank revenue jumped 46% to $14.6 billion to top expectations of $12.6 billion. Net interest income fell 11% to $13.0 billion, driven primarily by lower interest rates, to miss expectations of $13.2 billion. "With all of the stimulus spending, potential infrastructure spending, continued Quantitative Easing, strong consumer and business balance sheets and euphoria around the potential end of the pandemic, we believe that the economy has the potential to have extremely robust, multi-year growth," said Chief Executive Jamie Dimon. The stock has run up 21.3% year to date through Tuesday, while the SPDR Financial Select Sector ETF has tacked on 4.5% and the Dow Jones Industrial Average has gained 10.0%.
12:01 p.m. April 10, 2021 - By MarketWatch
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