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1:21 a.m. Nov. 3, 2021 - By Steve Goldstein
Lagarde says interest-rate hike next year from ECB is 'very unlikely'European Central Bank President Christine Lagarde delivered a speech on Wednesday saying it was "very unlikely" conditions would be met by next year that would allow for an interest-rate hike. "Market interest rates have risen over the past weeks, mainly as a result of greater market uncertainty about the inflation outlook, spillovers from abroad to policy rate expectations in the euro area, and some questions about the calibration of asset purchases in a post-pandemic world," she said in Lisbon. "In our forward guidance on interest rates, we have clearly articulated the three conditions that need to be satisfied before rates will start to rise. Despite the current inflation surge, the outlook for inflation over the medium term remains subdued, and thus these three conditions are very unlikely to be satisfied next year."
2:55 a.m. Oct. 28, 2021 - By William Watts
ECB leaves monetary policy measures unchangedThe European Central Bank, as expected, left its monetary policy measures unchanged Thursday, saying it would continue to purchase assets via its pandemic emergency purchase program at a slower pace than seen in the second and third quarters. The ECB left interest rates unchanged and said it would continue PEPP purchases through at least the end of March. Purchases under the separate Asset Purchase Program will continue at a pace of 20 billion euros ($23.2 billion) a month. ECB President Christine Lagarde will hold a news conference at 8:30 a.m. Eastern, in which economists expect her to push back against market pricing of rate increases in 2022 and 2023.
2:53 a.m. Sept. 9, 2021 - By William Watts
European Central Bank to 'moderately' slow pace of asset purchases under PEPPThe European Central Bank on Thursday indicated it would conduct asset purchases under its pandemic emergency purchase program, or PEPP, at a "moderately lower pace" after accelerating purchases in recent quarters. "Based on a joint assessment of financing conditions and the inflation outlook, the Governing Council judges that favorable financing conditions can be maintained with a moderately lower pace of net asset purchases under the PEPP than in the previous two quarters," the ECB said in a statement following a meeting of its Governing Council. The ECB said PEPP purchases would continue with an envelope of 1.85 trillion euros through at least the end of March 2022. The ECB left key interest rates unchanged, as expected. ECB President Christine Lagarde will hold a news conference at 2:30 p.m. Frankfurt time, or 8:30 a.m. Eastern.
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%.
3:00 a.m. July 22, 2021 - By William Watts
ECB tweaks forward guidance in line with new, symmetric inflation targetThe European Central Bank, as expected, left interest rates and its program of asset purchases unchanged Thursday, while tweaking its forward guidance on policy to put it in line with its newly adopted inflation target. The ECB earlier this month completed a strategic review, adopting a symmetric 2% inflation target in place of its previous aim of keeping inflation near but just below 2%. In a statement following its policy meeting, the Governing Council said it expects "key ECB interest rates to remain at their present or lower levels until it sees inflation reaching two per cent well ahead of the end of its projection horizon and durably for the rest of the projection horizon, and it judges that realized progress in underlying inflation is sufficiently advanced to be consistent with inflation stabilizing at 2% over the medium term." The ECB said this "may also imply a transitory period in which inflation is moderately above target."
2:04 a.m. July 8, 2021 - By Steve Goldstein
ECB announces new strategy of targeting 2% inflation on symmetric basisThe European Central Bank announced its new strategy, saying it will target inflation of 2% on a symmetric basis over the medium term, instead of targeting inflation of close to but below 2%. "When the economy is operating close to the lower bound on nominal interest rates, it requires especially forceful or persistent monetary policy action to avoid negative deviations from the inflation target becoming entrenched. This may also imply a transitory period in which inflation is moderately above target," the ECB said. The ECB also said it would it will seek to add the impact of owner-occupied housing over time while still targeting the HICP measure of inflation. The ECB has been reviewing its strategy since Jan. 2020. The euro remained up 0.4% immediately after the announcement. ECB President Christine Lagarde will hold a press conference at 8:30 a.m. Eastern to explain the move.
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.
2:59 a.m. June 10, 2021 - By William Watts
ECB expects to continue PEPP purchases at 'significantly higher' pace in coming quarterThe European Central Bank on Thursday offered few surprises, keeping interest rates unchanged and leaving the size of its asset purchase programs unchanged. The ECB said it expected to continue to purchase assets under its pandemic emergency purchase program at a "signficantly higher" pace than seen in the early months of this year. Analysts had been divided on whether the ECB would stick to the increased pace of purchases undertaken this quarter. ECB President Christine Lagarde will hold a news conference at 2:30 p.m. Frankfurt time, or 8:30 a.m. Eastern.
2:54 a.m. April 22, 2021 - By William Watts
European Central Bank leaves rates, bond-buying program unchangedThe European Central Bank, as expected, left interest rates unchanged and made no changes to its bond-buying efforts on Thursday. The ECB said the Governing Council decided to "reconfirm its very accommodative monetary policy stance." The central bank said it would continue to buy bonds under its 1.85 trillion euro pandemic emergency purchase program until at least the end of March 2022, while net purchases under its asset purchase program would continue at a monthly pace of 20 billion euros. The ECB said PEPP purchases, as decided at the ECB's previous meeting, will continue at a significantly faster pace over the current quarter. Interest rates were left unchanged, with the main refinancing rate at 0% and the deposit rate at minus 0.5%. ECB President Christine Lagarde will hold a news conference at 2:30 p.m. Frankfurt time, or 8:30 a.m. Eastern.
7:50 a.m. March 5, 2021 - By Michael Ashbaugh
Charting a technical question mark, S&P 500 violates the 50-day average Focus: 10-year Treasury note yield continues to take flight, Sector leaders remain in divergence mode, TNX, XLF, IYT, QQQU.S. stocks are mixed early Friday, vacillating after a stronger-than-expected monthly jobs report. Against this backdrop, the S&P 500 has ventured under its 50-day moving average for the first time since November, though amid a downturn that gets low marks for bearish style. The prevailing bigger-picture technicals are not one-size-fits-all.
9:27 a.m. March 4, 2021 - By Mark DeCambre
Buzzy stock-market ETFs backed by Portnoy and Wood get crushed Thursday afternoon as the Nasdaq nears correction Cathie Wood's flagship ARK Invest ETF and a VanEck Vectors Social Sentiment backed by Wall Street bro Dave Portnoy are down by at least 4%. The VanEck Vectors Social Sentiment ETF was down 4.3% in Thursday afternoon trade, in its debut. Meanwhile, Wood's ARK Innovation deepened its slide into correction on Thursday, off 6.6%. Both ETFs focus on drawing interest from many of the growthy tech stocks which are in the market's crosshairs as bond yields rise, including electric-vehicle maker Tesla Inc. . On Thursday, bonds took a leg higher after Federal Reserve Chairman Jerome Powell said he was watching the rise in rates but offered no concrete steps the central bank was taking to tamp down rate moves. The 10-year Treasury yield jumped by 7 basis points in afternoon action, hitting around 1.54% and accelerating a sell-off in stocks that are viewed as pricey and that don't offer a coupon. The tech-heavy Nasdaq Composite Index was down nearly 10% from its Feb. 12 peak, meeting the commonly used definition for a correction. The Dow Jones Industrial Average was down more than 400 points, or 1.3%, and nursing a 0.8% year-to-date gain. The S&P 500 index was down 1.6% and holding on to a 2021 gain of less than 0.1%. The Nasdaq Composite was negative for the year, down 1.4%.
7:34 a.m. March 4, 2021 - By Michael Ashbaugh
Charting a volatile March start: S&P 500, Nasdaq reach key technical tests Focus: Charting a still bullish-leaning sector backdrop, IYT, XLF, QQQ, XLV, XLU, XLP, XLE, XLI, AMZNU.S. stocks are mixed early Thursday — though well off the session’s worst levels — vacillating amid a volatile March start. Against this backdrop, the S&P 500 is back for its latest crack at the 50-day moving average, currently 3,820, while the Nasdaq Composite has whipsawed Thursday at last-ditch support matching the 2020 peak (12,973).
11:05 a.m. March 3, 2021 - By Mark DeCambre
Resurgence in Treasury yields hammers tech stocks, drives Nasdaq below 13,000 to mark worst 2-day skid in 6 monthsU.S. stock benchmarks on Wednesday closed lower and technology and tech-related shares got whacked as a continued rise in bond yields forced a rotational shift out of highflying tech and into areas of the market that might benefit from a regime of rising interest rates, like banks and energy . A report from the Federal Reserve's Beige Book, a survey of business conditions in the central bank's 12 regional districts, also showed only a modest uptick in economic activity to start the year, despite headway on COVID the vaccination front. The Dow Jones Industrial Average finished down by about 0.4% at 31,270, while the S&P 500 index closed off 1.3% at 3,820. The tech-laden Nasdaq Composite Index, took the brunt of the selling, off 2.7%, at 12,997 to mark the index's worst two-day skid since September, according to Dow Jones Market Data. Meanwhile, the initial public offering of health-care data company Oscar Health Inc. , finished down nearly 11% in its public debut. And the 10-year Treasury note was around 1.47%.
11:05 a.m. Feb. 25, 2021 - By Mark DeCambre
Dow skids 560 points to mark worst day in a month as surge in interest rates unsettles Wall Street bulls U.S. stock benchmarks on Thursday booked their worst selloff in weeks as a steady rise in government debt upended the market's bullish posture. The Dow Jones Industrial Average fell by about 560 points, or 1.8%, to 31,402, to mark its worst day since Jan. 29. the S&P 500 index closed 2.4% lower at 3,831, while the Nasdaq Composite Index , the most sensitive to rising yields, ended the session down 3.5% to 13,119 and finished below its 50-day moving average at 13,284.23 for the first time since Oct. 28, according to Dow Jones Market Data. The move comes as the 10-year Treasury note rose to above 1.5%, reflecting expectations of higher inflation and higher borrowing costs for companies and individuals.
11:08 a.m. Feb. 23, 2021 - By Mark DeCambre
Dow set to stage biggest comeback in 2 months on Powell comments; Nasdaq attempts to erase 4% intraday skidStock-market investors appear to be picking up what Federal Reserve Chairman is putting down on Tuesday in Senate Banking Committee testimony and buying the dip with gusto, as the main equity benchmarks attempt to erase sharp losses from earlier in the day that had been sparked by a sharp rise in bond yields. The Nasdaq Composite Index , for example, was down just about 0.2% at 13,508, after sinking nearly 4% earlier Tuesday to intraday nadir at 13,003.98, FactSet data show. The move had pushed the Nasdaq down below its 50-day moving average at 13,246.74. A close below that level would mark the first time the technology-laden benchmark finished beneath the short-term trend line since late October. Meanwhile, the Dow Jones Industrial Average was up 0.4% at 31,642 after being down by as many as 362 points or 1.2%. A close higher for the Dow would mark the biggest comeback for the blue-chip index since Dec. 21 when it fell 1.4% and ended 0.12% higher, according to Dow Jones Market Data. The S&P 500 index was up 0.4% at 3,894 after hitting an intraday low at 3,805.59. A higher close for the index would mark its biggest comeback since June 5 when it fell 2.48% to end up 0.8%. Powell in his first of two days of semi-annual congressional testimony said "the economy is a long way from our employment and inflation goals." And the chairman emphasized that the Fed will continue to support the economy with interest rates and asset purchases until substantial progress is made.Markets had been on edge as the 10-year Treasury note had jumped to around 1.36%, around its highest level in about a year, raising the prospects of higher borrowing costs for companies and individuals. Technology shares are particularly sensitive to the move in rates because valuations there are considered rich.
7:26 a.m. Feb. 17, 2021 - By Michael Ashbaugh
Charting market cross currents, S&P 500 pulls in to the range Cross currents across asset classes surface amid surging Treasury yields, TNX, USO, GLD, FXY, UUP, XLF, KREU.S. stocks are lower early Wednesday, pressured as the latest economic data fuel the debate regarding potential pending inflation. Against this backdrop, each big three U.S. benchmark has reversed from Tuesday’s record high, pulling in to its former range amid largely garden-variety selling pressure.
7:06 a.m. Feb. 3, 2021 - By Michael Ashbaugh
Charting a bullish reversal, S&P 500 nails the breakdown point Focus: Retail sector asserts cooling-off phase, Homebuilders hold the breakout point, XRT, XHB, CYBR, KMX, SWIR, WIXU.S. stocks are mixed early Wednesday, treading water after a solid batch of quarterly earnings reports and economic data. Against this backdrop, the S&P 500 has extended its rally from major support, rising to challenge its breakdown point (3,830).
3:02 a.m. Jan. 21, 2021 - By William Watts
European Central Bank leaves rates, bond-buying program unchangedThe European Central Bank, as expected, made no changes to interest rates or its asset-buying program on Thursday after moving last month to bolster its efforts to support the eurozone economy. The ECB said its Governing Council left its deposit rate at negative 0.5% and its main refinancing rate at 0%. The central bank also affirmed it would maintain the "envelope" for its pandemic emergency purchase program at 1.85 trillion euros and would continue monthly purchases under the program until at least the end of March 2022. The ECB added that if "favorable financing conditions can be maintained with asset purchase flows that do not exhaust the envelope over the net purchase horizon of the PEPP, the envelope need not be used in full. Equally, the envelope can be recalibrated if required to maintain favorable financing conditions to help counter the negative pandemic shock to the path of inflation." The ECB also will continue its asset purchase program at a pace of 20 billion euros a month. ECB President Christine Lagarde will hold a news conference at 2:30 p.m. Frankfurt time, or 8:30 a.m. Eastern.
6:48 a.m. Jan. 14, 2021 - By Michael Ashbaugh
Charting a slow-motion breakout attempt: Nasdaq, Dow industrials press record highs Focus: Homebuilders break out even amid rising interest rates, XHB, ZBRA, KSS, WSM, JNPR, FATEU.S. stocks are higher early Thursday, rising amid renewed optimism over fiscal-stimulus prospects. Against this backdrop, each big three U.S. benchmark has challenged its prevailing range top — levels defining record highs — amid a slow-motion breakout attempt.
7:53 a.m. Jan. 12, 2021 - By Michael Ashbaugh
Charting a decisive 2021 breakout: U.S. benchmarks clear 20-day volatility bands Focus: Rising interest rates and energy prices signal reflation trade, 10-year yield and crude oil take flight, TNX, USO, AMD, SEDG, CSCOTechnically speaking, the major U.S. benchmarks have asserted a near-term holding pattern, pulling in modestly from all-time highs. Still, the slight downturn punctuates previously aggressive January breakouts amid a still comfortably bullish bigger-picture backdrop.
7:29 a.m. Jan. 12, 2021 - By Michael Ashbaugh
Charting a decisive 2021 breakout: U.S. benchmarks clear 20-day volatility bands Focus: Rising interest rates and energy prices signal reflation trade, 10-year yield and crude oil take flight, TNX, USO, AMD, SEDG, CSCOTechnically speaking, the major U.S. benchmarks have asserted a near-term holding pattern, pulling in modestly from all-time highs. Still, the slight downturn punctuates previously aggressive January breakouts amid a still comfortably bullish bigger-picture backdrop.
9:56 a.m. Jan. 4, 2021 - By Ciara Linnane
U.S. heads toward 21 million COVID-19 cases and 353,000 deaths as vaccine program continues to lag all targets ‘Last mile’ vaccine distribution has been far slower than required, ‘with millions of doses still sitting on the shelves,’ says Raymond James analystThe global case tally for the coronavirus-borne illness COIVID-19 climbed above 85 million on Monday, as the U.S. headed toward 21 million cases and 353,000 deaths, as the vaccine program continued to advance with fits and starts and to lag all early targets.
11:04 a.m. Dec. 16, 2020 - By Mark DeCambre
Nasdaq ends at record, S&P 500 narrowly misses closing high as Fed emphasizes 0% interest rates through 2023 U.S. stocks finished at or near records on Wednesday, though the Dow closed nearly flat, as the Federal Reserve did little to indicate a change of the regime of ultralow interest rates amid the pandemic. The Fed said it was optimistic on the current recovery but emphasized that the outlook for the economy will hinge on how the U.S. deals with the worst viral outbreak in more than a century. Federal-funds rates were held at a range between 0% and 0.25%, as expected, as Washington tries to hammer out an agreement on another round of financial aid to combat the economic harm from the coronavirus. The central bank increased its GDP forecast but didn't adjust its $120 billion asset purchases, as had been expected by some Fed watchers. "Together these measures will ensure that monetary policy will continue to deliver powerful support for the economy until the recovery is complete," Fed Chairman Jerome Powell said at a news conference after Wednesday's statement was released. "A big yawn," is how Michael Arone, chief investment strategist at State Street Global Advisors, described the policy update to MarketWatch, immediately after the release. The Dow Jones Industrial Average closed down by about 44 points, or 0.2%, at around 30,155; the S&P 500 index rose 0.2% to 3,701, just shy of its Dec. 8 closing record at 3,702.25' while the Nasdaq Composite Index booked a 0.5% rise to a record close at about 12,658. In economic reports, a retail sales report showed that the economy may be slowing as coronavirus cases surge. U.S. retail sales dropped a seasonally adjusted 1.1% in November from the prior month. The data and Fed update come as congressional lawmakers were hammering out a roughly $900 billion deal that was expected to include another round of direct payments to households, The Wall Street Journal reported. In corporate news, Shares of Facebook Inc. were in focus after it launched a PR assault against Apple Inc. claiming the iPhone maker's upcoming mobile operating system update will hurt small businesses. Bond yields also edged higher, with the 10-year Treasury note yielding 0.92%.
9:23 a.m. Dec. 16, 2020 - By Mark DeCambre
Dow adds to slight losses Wednesday as Fed says path of economy next year depends on coronavirusU.S. stocks traded off their highest levels of the session on Wednesday, and losses deepened for the Dow, as investors parsed the last policy update of 2020 from the Federal Reserve, which did little to indicate a change of the regime of ultralow interest rates amid the pandemic. The Fed said it was optimistic on the current recovery but noted that the outlook for the economy will hinge on how the U.S. deals with the worst viral outbreak in more than a century. Federal-funds rates were held at a range between 0% and 0.25%, as expected, as Washington tries to hammer out an agreement on another round of financial aid to combat the economic harm from the coronavirus. The central bank increased its GDP forecast but did little to adjust its asset purchases, as had been expected by some Fed watchers. "A big yawn," is how Michael Arone, chief investment strategist at State Street Global Advisors, described the policy update to MarketWatch, immediately after the release. The Dow Jones Industrial Average was trading of by about 100 points, or 0.3%, lower at 30,104, the S&P 500 index slipped into negative territory at 3,693, while the Nasdaq Composite Index pared its gains, up 0.2% at 12,618. Fed Chairman Jerome Powell will host a news conference at 2:30 p.m.
2:58 a.m. Dec. 10, 2020 - By William Watts
ECB expands stimulus program, says it will continue to monitor exchange rateThe European Central Bank on Thursday significantly expanded and extended its stimulus efforts as it moved to counter the impact of the sharp rise in COVID-19 cases this fall. Following its Governing Council meeting, the ECB said it would expand the size of its pandemic emergency purchase program, or PEPP, by 500 billion euros to 1.85 trillion euros and extend monthly purchases by 9 months to March 2022. The ECB also said it would continue buying 20 billion euros a month in securities through its asset purchase program, and that the program would run as long as necessary. The ECB also tweaked a program of cheap loans to banks aimed at boosting lending across the eurozone and said it would extend collateral easing measures. As expected, interest rates were left unchanged. In the announcement, the ECB said uncertainty remained high "including with regard to the dynamics of the pandemic and the timing of vaccine roll-outs." The ECB siad it would "also continue to monitor developments in the exchange rate with regard to their possible implications for the medium-term inflation outlook."
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