Tag: Energy markets

Wynn, Marathon Oil rise; Microsoft, Lowe’s fall

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Stocks that traded heavily or had substantial price changes Friday: Wynn, Marathon Oil rise; Microsoft, Lowe’s fall

NEW YORK — Stocks that traded heavily or had substantial price changes Friday:

Marathon Oil Corp., up 29 cents to $27.07.

Energy stocks held up better than the rest of the market as U.S. crude oil prices edged higher.

Microsoft Corp., down $1.19 to $239.82.

Big technology stocks led the broader market lower, as they have all year, amid rising interest rates and inflation concerns.

Freeport-McMoRan Inc., down 31 cents to $38.

The copper miner slipped as prices for the metal edged lower.

Wynn Resorts Ltd., up $1.21 to $82.47.

Casinos with operations in China rose as that country continues to focus on easing restrictions on travel and commerce.

Lowe’s Companies Inc., down $3.02 to $199.24.

Home-improvement retailers slipped amid concerns about a weakening housing market and inflation cutting into consumer spending.

American Airlines Group Inc., up 2 cents to $12.72.

Air travel continued stabilizing following delays and cancellations over the last holiday weekend.

Qualcomm Inc., down 10 cents to $109.94.

Chipmakers remain weighed down by concerns about weaker demand heading into 2023.

Rogers Communications Inc., up $1.79 to $46.84.

Canada’s Competition Tribunal rejected an effort to block the wireless communications company’s purchase of Shaw Communications.

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December 30, 2022

These 20 energy stocks are worth a look if you think oil prices will soar in 2023

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Harris Kupperman, the president of Praetorian Capital, made a couple of interesting calls heading into 2022. He predicted that stocks of the giant tech-oriented companies that led the bull market would be sold off, and that oil prices would continue to rise through the end of 2022.

The first prediction came true, while the second one for oil prices fizzled. After rising to $130 in March, oil prices have fallen back to where they started the year. Then again, that second prediction still could have made you a lot of money because the share prices of oil companies kept rising anyway.

That leads to a new prediction for 2023 and a related stock screen below.

Here’s a chart showing the movement of front-month contract prices for West Texas Intermediate (WTI) crude oil
CL.1,
-0.62%
since the end of 2021:

FactSet

Even though Kupperman didn’t get his oil price call right, the energy sector of the S&P 500
SPX,
-1.20%
was up 60% for 2022 through Dec. 27, excluding dividends. That is the only one of the 11 S&P 500 sectors to show a gain in 2022. And the energy sector is also cheapest relative to earnings expectations, with a forward price-to-earnings ratio of 9.8, compared with 16.7 for the full S&P 500.

WTI pulled back from its momentary peak at $130.50 in early March, but that didn’t reverse the long-term trend of low capital spending by oil and natural gas producers, which has given investors confidence that supplies will remain tight.

Vicki Hollub, the CEO of Occidental Petroleum Corp.
OXY,
-3.50%
— the best-performing S&P 500 stock of 2022 — said during a recent interview that there was “no pressure to increase production right now,” citing a $40 per barrel break-even point for oil prices.

Kupperman now expects strong demand and low supplies to push oil as high as $200 a barrel in 2023.

At the end of November, these 20 oil companies stood out as reasonable plays for 2023 based on expectations for free-cash-flow generation and dividend payments.

For this next screen, we are only looking at ratings and consensus price targets among analysts polled by FactSet.

There are 23 energy stocks in the S&P 500, and you can invest in that group easily by purchasing shares of the Energy Select SPDR ETF
XLE,
-2.24%.
We can expand the list of large-cap names by looking at the components of the iShares Global Energy ETF
IXC,
-1.91%,
which holds all the energy stocks in the S&P 500 plus large players based outside the U.S.

The top five holdings of IXC are:

Company	Ticker	Country	% of portfolio	Share “buy” ratings	Dec. 27 price	Price target	Implied 12-month upside potential
Exxon Mobil Corp.	XOM, -1.64%	U.S.	16.4%	54%	110.19	118.89	7.89%
Chevron Corp.	CVX, -1.48%	U.S.	11.5%	54%	179.63	190.52	6.06%
Shell PLC	SHEL, -0.70%	U.K.	7.8%	83%	23.67	29.82	25.99%
TotalEnergies SE	TTE, -1.40%	France	5.6%	62%	59.63	64.40	8.00%
ConocoPhillips	COP, -2.67%	U.K.	5.4%	83%	118.47	140.84	18.88%
Source: FactSet

Prices on the tables in this article are in local currencies.

IXC holds 51 stocks. To expand the list for a stock screen, we added the energy stocks in the S&P 400 Mid Cap Index
MID,
-1.24%
and the S&P Small Cap 600 Index
SML,
-1.89%
to bring the list up to 91 companies, which we then pared to 83 covered by at least five analysts polled by FactSet.

Here are the 20 companies in the list with at least 75% “buy” or equivalent ratings that have the most upside potential over the next 12 months, based on consensus price targets:

Company	Ticker	Country	Share “buy” ratings	Dec. 27 price	Price target	Implied 12-month upside potential
EQT Corp.	EQT, -7.82%	U.S.	83%	36.34	59.14	63%
Green Plains Inc.	GPRE, -2.72%	U.S.	80%	29.80	43.40	46%
Cameco Corp.	CCO, +0.33%	Canada	100%	30.48	44.25	45%
Talos Energy Inc.	TALO, -8.40%	U.S.	86%	19.77	28.67	45%
Ranger Oil Corp. Class A	ROCC, -6.22%	U.S.	100%	41.33	58.00	40%
Tourmaline Oil Corp.	TOU, -4.92%	Canada	100%	71.40	98.83	38%
Civitas Resources Inc.	CIVI, -4.06%	U.S.	100%	58.82	80.83	37%
Inpex Corp.	1605, -2.08%	Japan	88%	1,477.00	1,965.56	33%
Diamondback Energy Inc.	FANG, -2.26%	U.S.	84%	137.58	181.90	32%
Santos Limited	STO, -3.12%	Australia	100%	7.20	9.26	29%
Matador Resources Co.	MTDR, -3.98%	U.S.	79%	57.59	73.75	28%
Targa Resources Corp.	TRGP, -2.63%	U.S.	95%	73.89	94.05	27%
Cenovus Energy Inc.	CVE, -2.55%	Canada	84%	26.24	33.22	27%
Shell PLC	SHEL, -0.70%	U.K.	83%	23.67	29.82	26%
Ampol Limited	ALD, -2.89%	Australia	85%	28.29	35.01	24%
EOG Resources Inc.	EOG, -3.54%	U.S.	79%	132.08	157.52	19%
ConocoPhillips	COP, -2.67%	U.S.	83%	118.47	140.84	19%
Repsol SA	REP, -0.66%	Spain	75%	15.05	17.88	19%
Halliburton Co.	HAL, -3.03%	U.S.	86%	39.27	45.95	17%
Marathon Petroleum Corp.	MPC, -1.97%	U.S.	76%	116.82	132.56	13%
Source: FactSet

Click on the tickers for more information about the companies.

Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.

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December 28, 2022

Europe hosts southeast Asian leaders as own crises mount

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BRUSSELS — European Union and southeast Asian countries commemorated 45 years of diplomatic ties Wednesday at a summit overshadowed by political distractions in Europe, ranging from the war in Ukraine to a bribery scandal.

EU leaders hosted counterparts from the Association of Southeast Asian Nations, or ASEAN, in a nod to Asia’s economic rise. But the meeting comes at a time of increasing difficulties in the 27-nation European bloc.

“We have to make sure that we have a strong position in our relationship with ASEAN,” Dutch Prime Minister Mark Rutte told reporters in Brussels. “We are talking about worldwide supply chains. We are talking about growth potential.”

The EU is looking for trade and investment possibilities across much of the world, especially in emerging economies, after its economy was battered by the COVID-19 pandemic before the war in Ukraine compounded the problems and put the bloc at risk of a recession.

Disrupted Russian energy supplies have affected financial markets and driven up inflation, driving up the consumer cost of everything from food to heating. Along with seeking out new sources abroad and at home, the EU is weighing devoting extra funds to help businesses in Europe cope with high energy prices and to counter an American subsidy spree.

But the bloc’s struggle to impose a price cap on Russian natural gas and a European Parliament corruption case have distracted attention away from Wednesday’s one-day EU-ÁSEAN summit.

French President Emmanuel Macron, who flew to Qatar to watch France’s semifinal match against Morocco in the World Cup on Wednesday evening, did not attend the event. On the side of the 10-nation ASEAN, Myanmar’s junta leader – Min Aung Hlaing – was absent because the EU refused to invite him.

The other ASEAN members are Brunei, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam. The members, ,which together represent 660 million people, rank among the world’s top 10 economies.

High on the agenda was a push for deeper infrastructure ties between the EU and ASEAN, with Europe seeking projects under its “Global Gateway” program that is something of a European answer to China’s “Belt and Road Initiative.”

“In the global world that we are living in today, it is very important that we are connected to like-minded countries,” Estonian Prime Minister Kaja Kallas said.

Both sides also focused on creating more clean energy to fight climate change and on deepening economic relations through greater trade. An EU push more than a decade ago for a free-trade agreement with ASEAN as a whole gave way to targeted deals with individual members.

The EU has negotiated trade pacts with Singapore and Vietnam and is in talks with Indonesia on a similar accord. European free-trade negotiations with Thailand, Malaysia and the Philippines are on hold.

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December 14, 2022
Closing prices for crude oil, gold and other commodities

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Benchmark U.S. crude oil for January delivery fell $3.05 to $76.93 a barrel Monday. Brent crude for February delivery fell $2.89 to $82.68 a barrel.

Wholesale gasoline for January delivery fell 8 cents to $2.20 a gallon. January heating oil fell 17 cents to $3 a gallon. January natural gas fell 70 cents to $5.58 per 1,000 cubic feet.

Gold for February delivery fell $28.30 to $1,781.30 an ounce. Silver for March delivery fell 83 cents to $22.42 an ounce and March copper fell 5 cents to $3.80 a pound.

The dollar rose to 136.69 Japanese yen from 134.44 yen. The euro fell to $1.0493 from $1.0534.

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December 5, 2022
Asian shares gain after Fed chair signals slower rate hikes

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BANGKOK — Shares advanced in Europe and Asia on Thursday after a rally on Wall Street spurred by the Federal Reserve chair’s comments on easing the pace of interest rate hikes to tame inflation.

Signs that China may be shifting its approach to containing COVID-19 outbreaks to focus more on vaccinations, while some cities have lifted pandemic lockdowns, also helped lift sentiment.

In Europe, Germany’s DAX gained 0.5% to 14,472.99 while the CAC 40 in Paris edged 0.1% higher to 6,750.81. Britain’s FTSE 100 also was 0.1% higher, at 7,580.56. The future for the S&P 500 was down 0.1% while that for the Dow industrials fell 0.2%.

Stocks on Wall Street roared higher Wednesday after Fed Chair Jerome Powell, said in comments at the Brookings Institution that the central bank could begin moderating its pace of rate hikes as soon as December, when its policymaking committee will hold its next meeting.

“We have a risk management balance to strike,” Powell said. “And we think that slowing down (on rate hikes) at this point is a good way to balance the risks.”

The benchmark S&P 500 rose 3.1%, snapping a three-day losing streak. The Dow Jones Industrial Average gained 2.2% and the Nasdaq composite climbed 4.4%. The Russell 2000 index rose 2.7%.

“The optimism in the market is that perhaps the worse is over for the U.S. in terms of inflation reading, and the Fed isn’t going to increase the interest aggressively,” Naeem Aslam of Avatrade said in a commentary.

In Asia on Thursday, Tokyo’s Nikkei 225 index added 0.9% to 28,226.08 while the Hang Seng in Hong Kong advanced 0.8% to 18,736.44. The Shanghai Composite index climbed 0.5% to 3,165.47. In Seoul, the Kospi picked up 0.3% to 2,479.84. Australia’s S&P/ASX 200 gained 1% to 7,354.40.

Bangkok’s SET rose 0.8% a day after the central bank raised its key interest rate by a quarter point to 1.25%, aiming to curb inflation.

The stronger gains seen early in Asian trading had faded by the day’s end.

Markets have wobbled all year as the Fed has fought high inflation with aggressive interest rate increases.

“While it could be argued that Jerome Powell’s comments on Wednesday were relatively balanced — slower tightening now but rates high for longer — the last year has proven that anticipating the path of inflation even a short period ahead is incredibly difficult,” Craig Erlam of Oanda said in a commentary.

Powell stressed that the Fed will push rates higher than previously expected and keep them there for an extended period to ensure inflation comes down sufficiently.

“History cautions strongly against prematurely loosening policy,” he said. “We will stay the course until the job is done.”

Wall Street has been hoping that the Fed will slow the scale and pace of its interest rate hikes. It has raised its benchmark interest rate six times since March, driving it to a range of 3.75% to 4%, the highest in 15 years. The goal is to make borrowing more costly and generally slow the economy in order to tame inflation.

Higher mortgage rates have caused home sales to plunge and higher interest rates also have raised costs for most other consumer and business loans.

The economy has been slowing, and many economists expect the U.S. to slip into a recession next year. But there are strong pockets of growth. The government said Wednesday that the economy expanded at a 2.9% annual rate from July through September, an upgrade from its initial estimate.

Consumers have continued spending, despite inflation squeezing wallets. Overall, employment remains strong, though job openings dropped in October more than economists had anticipated and human resources company ADP reported an easing in private sector hiring in November.

Investors will get more data Thursday on the employment sector with a report on weekly unemployment claims. The closely watched monthly report on the job market will be released on Friday.

In other trading, U.S. benchmark crude oil lost 12 cents to $80.43 a barrel in electronic trading on the New York Mercantile Exchange. It climbed 3% on Wednesday.

Brent crude, the pricing basis for international trading, shed 14 cents to $86.83 a barrel.

The U.S. dollar fell to 136.31 Japanese yen from 138.09 yen. The euro rose to $1.0435 from $1.0409.

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December 1, 2022
Stocks waver on Wall Street ahead of speech by Fed chair

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NEW YORK — Stocks are wavering in early trading on Wall Street ahead of a speech by Jerome Powell, the chair of the Federal Reserve, on the outlook for the economy and inflation. Treasury yields were higher and crude oil prices rose. The S&P 500 index was hovering around the breakeven line after the first few minutes of trading Wednesday. The tech-heavy Nasdaq was up 0.3% and the Dow Jones Industrial Average fell 0.2%. European markets were trading higher and Asian markets closed mixed overnight. The yield on the 10-year Treasury note, which influences mortgage rates, rose to 3.77%.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

U.S. markets are flat ahead of a highly anticipated that may give clues about future interest rate hikes.

On the last trading day of the month, futures for the Dow Jones industrials and the S&P 500 appeared static. Major U.S. indices are clinging to small gains in November, which if they hold, would be the second straight month of advances after a miserable September.

There is hope on Wall Street that the Fed will slow the scale and pace of its interest rate hikes and investors are closely watching the latest data on inflation, consumer spending and the employment market. They’ll be looking for any signs of a shift in policy when Powell speaks at the Brookings Institution about the outlook for the U.S. economy and the labor market on Wednesday.

The Fed’s benchmark rate currently stands at 3.75% to 4%, up from close to zero in March.

The U.S. government will be releasing several reports about the labor market this week. A report about job openings and labor turnover for October will be released Wednesday, followed by a weekly unemployment claims report Thursday. The closely watched monthly report on the job market will be released on Friday.

Investors were also keeping tabs on China, where protests have erupted over the “zero-COVID” strategy that has confined millions of people to their homes, sometimes for months.

China has eased some controls after demonstrations in at least eight mainland cities and Hong Kong. It’s unclear if protests will start up again after authorities detained an unknown number of people and stepped up surveillance.

Renewed restrictions on businesses and other activity have hit manufacturing, with an official survey announced Wednesday showing the purchasing managers index falling to 48.0 in November from 49.2 the month before. The index is on a scale of 0 to 100 where readings 50 and above show expansion.

“A further fall in the new orders and new export orders indices suggests this was largely driven by weakening domestic and foreign demand,” Capital Economics said in a report. “Today’s surveys suggest that intensified virus disruption has delivered another blow to the economy this month.”

Japan’s benchmark Nikkei 225 lost 0.2% to finish at 27,968.99 after reports said industrial production contracted 2.6% in October, compared with 1.7% in September, amid weakening demand from China and other world markets.

Other regional markets advanced.

Hong Kong’s Hang Seng added 2.1% to 18,584.49. The Shanghai Composite index inched up less than 0.1% to 3,151.34. Australia’s S&P/ASX 200 rose 0.4% to 7,284.20, while South Korea’s Kospi rose 1.6% to 2,472.53.

“Due to a more reflective approach to the recent zero-COVID measures, Chinese stocks have taken substantial leaps and bounds this week. However, that optimism is giving way to hawkish contemplation as traders twiddle their thumbs awaiting a speech from Federal Reserve Chair Jerome Powell later Wednesday,” Stephen Innes, a managing partner at SPI Asset Management, said in a report.

Shares in Europe climbed higher at midday after a report showed that inflation in the 19 countries that use the euro currency eased for the first time in more than a year as energy prices retreated from painful highs. But the 10% rate, a drop from 10.6% in October, still hovers near a record that has robbed consumers of their spending power and led economists to predict a recession.

Britain’s FTSE 100 and France’s CAC 40 each added 0.8%, while Germany’s DAX gained 0.4%.

In energy trading, benchmark U.S. crude gained $1.67 to $79.87 a barrel. Brent crude, the international standard, added $1.72 to $85.97 a barrel.

In currency trading, the U.S. dollar rose to 138.72 Japanese yen from 138.65 yen. The euro cost $1.0365, up from $1.0331.

———

Kageyama reported from Tokyo; Ott reported from Washington.

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November 30, 2022
Asian shares rise except Japan as markets eye China protests

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TOKYO — Asian shares were mostly higher Tuesday as jitters over protests in China set off by growing public anger over COVID-19 restrictions subsided.

U.S. futures edged higher. Oil prices rose more than $1 per barrel.

Chinese shares rebounded after they were hit by sharp losses on Monday following protests over the weekend in various Chinese cities. Hong Kong’s Hang Seng jumped 4% to 17,981.31, while the Shanghai Composite added 2.3% to 3,148.17.

Japan’s Nikkei 225 lost 0.5% to 28,016.58. Australia’s S&P/ASX 200 gained 0.3% to 7,249.80. South Korea’s Kospi added 0.8% to 2,427.13.

Although market sentiment has been weighed down by the recent demonstrations in China, some analysts noted calm could return in coming sessions. The world’s second largest economy has been stifled by a “zero COVID” policy which includes lockdowns that continually threaten the global supply chain.

“The absence of any clear escalation in protests could aid to bring some calm to markets,” said Yeap Jun Rong, market strategist at IG.

The unrest has stoked worries on Wall Street that if Chinese leader Xi Jinping cracks down further on dissidents there or expands the lockdowns, it could slow the Chinese economy, which would hurt oil prices and global economic growth, said Sam Stovall, chief investment strategist at CFRA.

“A lot of people are worried about what the fallout will be, and basically are using that as an excuse to take some recent profits,” he said.

Stephen Innes, managing partner at SPI Asset Management, said business was returning as usual, although the heavy police presence may unnerve a Western audience.

“Chinese markets are rallying early in the session as local investors take a more pragmatic approach to the current COVID proceedings. Indeed, a probable outcome is a quicker loosening of restrictions once the current COVID wave and numerous protest flash points subside,” he said.

Japanese government data released Tuesday showed that the unemployment rate for October was unchanged from September at 2.6%. Separately, data released by another ministry showed a slight increase in the number of available jobs per job-seeker at 1.35. The increase has continued for 10 months.

Hiring was up in anticipation of tourists returning in droves to Japan. Borders that have been basically closed during the coronavirus pandemic have reopened at a time when the declining value of the yen against the U.S. dollar and other currencies make Japan an attractive destination for tourists.

On Monday, more than 90% of the stocks in the S&P 500 closed in the red, with technology companies the biggest weights on the broader market. Apple, which has seen iPhone production hit hard by lockdowns in China, fell 2.6%.

Several casino operators gained ground as the Chinese gambling haven of Macao tentatively renewed their licenses. Las Vegas Sands rose 1.1% and Wynn Resorts gained 4.4%.

The fallout from the collapse of crypto exchange FTX continued. Cryptocurrency lender BlockFi is filing for Chapter 11 bankruptcy protection. Cryptocurrency exchange Coinbase Global fell 4% and the price of Bitcoin slipped 2.1%.

The S&P 500 fell 1.5% to 3,963.94. The Dow dropped 1.4% to 33,849.46. The tech-heavy Nasdaq lost 1.6% to close at 11,049.50.

Anxiety remains high over the ability of the Federal Reserve to tame inflation by raising interest rates without going too far and causing a recession. The central bank’s benchmark rate currently stands at 3.75% to 4%, up from close to zero in March. It has warned it may have to ultimately raise rates to previously unanticipated levels to rein in high prices on everything from food to clothing.

Federal Reserve Chair Jerome Powell will speak at the Brookings Institution about the outlook for the U.S. economy and the labor market on Wednesday.

The Conference Board will release its consumer confidence index for November on Tuesday. That could shed more light on how consumers have been holding up amid high prices and how they plan on spending through the holiday shopping season and into 2023.

The U.S. government will release several reports about the labor market this week that could give Wall Street more insight into one of the strongest sectors of the economy. A report about job openings and labor turnover for October will be released on Wednesday, followed by a weekly unemployment claims report on Thursday. The closely watched monthly report on the job market will be released on Friday.

In energy trading, benchmark U.S. crude added $1.37 to $78.61 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, rose $1.81 to $85.00 a barrel.

In currency trading, the U.S. dollar fell to 138.53 Japanese yen from 138.90 yen. The euro cost $1.0387, up from $1.0344.

———

Yuri Kageyama is on Twitter at https://twitter.com/yurikageyama

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November 28, 2022
Closing prices for crude oil, gold and other commodities

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Benchmark U.S. crude oil for January delivery fell $1.66 to $76.28 a barrel Friday. Brent crude for January delivery fell $1.71 to $83.63 a barrel.

Wholesale gasoline for December delivery fell 14 cents to $2.33 a gallon. December heating oil fell 12 cents to $3.24 a gallon. December natural gas fell 29 cents to $7.02 per 1,000 cubic feet.

Gold for December delivery rose $8.40 to $1,754 an ounce. Silver for December delivery rose 6 cents $21.43 an ounce and December copper rose 1 cent to $3.63 a pound.

The dollar rose to 139.05 Japanese yen from 138.48 yen. The euro fell to $1.0412 from $1.0413.

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November 25, 2022
Asian shares mixed as investors eye Tokyo inflation data

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TOKYO — Asian shares were mixed Friday as worries deepened about the regional economy and Japan reported higher-than-expected inflation.

Benchmarks fell in Tokyo, Seoul and Hong Kong, but rose in Sydney and Shanghai.

Investors have their eyes on China‘s lockdowns and restrictions to curb the spread of coronavirus infections, as the direction China takes will have great impact on the rest of Asia.

“Reopening policies have pivoted in China, which will be a gradual process. COVID control measures will vary across cities, but positive top-down approaches will be ongoing,” said Stephen Innes, Stephen Innes, managing partner at SPI Asset Management.

Japan’s benchmark Nikkei 225 lost 0.3% in afternoon trading to 28,288.38. Australia’s S&P/ASX 200 rose 0.2% to 7,259.50. South Korea’s Kospi was little changed, down less than 0.1%, at 2,440.41. Hong Kong’s Hang Seng slipped 0.9% to 17,507.03. The Shanghai Composite gained 0.3% to 3,099.19.

Data on inflation in Tokyo for November beat analysts’ expectations, with the core consumer price index showing a 3.6% rise, the highest in more than four decades.

The Federal Reserve and the world’s other central banks have been raising interest rates to try to rein in decades-high inflation. But the Bank of Japan has resisted tightening monetary policy, a move that would counter inflationary pressures by discouraging borrowing by businesses and consumers.

“With the Bank of Japan being one of the few outliers which has not embarked on a rate-hiking process, the point of pivot will be a key question into next year,” Jun Rong Yeap of IG said in a commentary.

The rising cases of COVID-19 cases and deaths in what experts are calling an eighth wave, in Japan and in other Asian nations, are also weighing on investor sentiments, but both remain relatively low so far. Many people in Japan and those nations have been vaccinated.

Shares finished higher Thursday in France, Germany and Britain. U.S. markets were closed for Thanksgiving. Wall Street will have a shortened session on Friday.

In energy trading, benchmark U.S. crude rose 50 cents to $78.44 a barrel in electronic trading on the New York Mercantile Exchange. It gave up $3.01 to $77.94 per barrel on Thursday.

Brent crude, the international standard, added 32 cents to $85.66 a barrel in London.

In currency trading, the U.S. dollar rose to 138.68 Japanese yen from 138.58 yen. The euro cost $1.0407, inching down from $1.0411.

———

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

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November 24, 2022
Asian shares mixed as investors eye Tokyo inflation data

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TOKYO — Asian shares were mixed Friday as worries deepened about the regional economy and Japan reported higher-than-expected inflation.

Benchmarks fell in Tokyo, Seoul and Hong Kong, but rose in Sydney and Shanghai. Oil prices advanced.

Investors have their eyes on China‘s lockdowns and restrictions to curb the spread of coronavirus infections, as the direction China takes will have great impact on the rest of Asia.

“Reopening policies have pivoted in China, which will be a gradual process. COVID control measures will vary across cities, but positive top-down approaches will be ongoing,” said Stephen Innes, Stephen Innes, managing partner at SPI Asset Management.

Japan’s benchmark Nikkei 225 lost 0.3% in morning trading to 28,286.40. Australia’s S&P/ASX 200 rose 0.3% to 7,262.40. South Korea’s Kospi edged down 0.1% to 2,438.19. Hong Kong’s Hang Seng slipped 0.8% to 17,521.11. The Shanghai Composite gained 0.5% to 3,105.36.

Data on inflation in Tokyo for November beat analysts’ expectations, with the core consumer price index showing a 3.6% rise, the highest in more than four decades.

The Federal Reserve and the world’s other central banks have been raising interest rates to try to rein in decades-high inflation. But the Bank of Japan has resisted tightening monetary policy, a move that would counter inflationary pressures by discouraging borrowing by businesses and consumers.

“With the Bank of Japan being one of the few outliers which has not embarked on a rate-hiking process, the point of pivot will be a key question into next year,” Jun Rong Yeap of IG said in a commentary.

Shares finished higher Thursday in France, Germany and Britain. U.S. markets were closed for Thanksgiving. Wall Street will have a shortened session on Friday.

In energy trading, benchmark U.S. crude rose 46 cents to $78.40 a barrel in electronic trading on the New York Mercantile Exchange. It gave up $3.01 to $77.94 per barrel on Thursday. Brent crude, the international standard, added 29 cents to $85.55 a barrel in London.

In currency trading, the U.S. dollar rose to 138.64 Japanese yen from 138.58 yen. The euro cost $1.0410, inching down from $1.0411.

———

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

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November 24, 2022
Tesla stock at two-year low, other EV-maker shares plunge as concerns simmer about China, oil futures

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Tesla Inc. shares on Monday were poised to end at a fresh two-year low, with shares of other electric-vehicle makers also underperforming the broader equity market as worries about China’s COVID-19 lockdowns re-emerged and oil futures prices dropped to their lowest level since January.

Shares of Tesla
TSLA,
-6.84%
extended their losing streak to a fourth session and were on track for their lowest close since Nov. 20, 2020, when they closed at $163.20. The stock was the 10th worst performer in the S&P 500 index
SPX,
-0.39%
and fourth worst in the Nasdaq 100
COMP,
-1.09%
— and the most active stock on both exchanges.

American depositary shares of several China-based EV makers, including Nio Inc.
NIO,
-4.30%
and XPeng Inc.
XPEV,
-5.67%,
also underperformed the broader market. In contrast, shares of General Motors Co.
GM,
-0.63%
and Ford Motor Co.
F,
-0.29%
merely edged lower.

The energy sector was taking a broad beating as well, with the SPDR Energy Select Sector ETF
XLE,
-1.35%
looking at a four-week low.

Related: GM’s EV roadmap is ‘ambitious,’ but Wall Street doesn’t give it full credit just yet

Tesla’s underperformance as compared with the broader indexes holds on a monthly and yearly basis as well. The stock is down more than 25% so far in November and 52% this year.

If the trend continues, this would be the worst yearly performance for the stock on record.

The S&P has lost about 17% year to date and has clawed back to a 2% gain so far in November.

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November 21, 2022
Asian stocks down after Wall St weekly loss on rate fears

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BEIJING — Asian stock markets sank Monday after Wall Street ended with a loss for the week amid anxiety about Federal Reserve plans for more interest rate hikes to cool inflation.

Hong Kong’s benchmark fell more than than 2%. Shanghai, Seoul and Sydney also retreated, while Tokyo was little-changed. Oil prices declined.

U.S. stock indexes ended with a weekly loss after a Fed official, James Bullard, rattled investors by suggesting the central bank’s base lending rate might have to be raised to as much as almost double its already elevated level.

“Bullard dimmed the light on rallies,” said Tan Boon Heng of Mizuho Bank in a report.

The Hang Seng in Hong Kong was off 2.1% at 17,616.06 after the territory’s leader, John Lee, tested positive for the coronavirus after returning from an Asia-Pacific meeting in Bangkok.

The Shanghai Composite Index lost 0.8% to 2,072.08 and the Nikkei 225 in Tokyo lost less than 0.1% to 27,904.69.

The Kospi in South Korea fell 1.2% to 2,414.20 and Sydney’s S&P-ASX 200 lost 0.1% to 7,141.50.

India’s Sensex opened down 0.7% at 61.212.75. New Zealand gained while Southeast Asian markets declined.

On Friday, Wall Street’s benchmark S&P 500 index rose 0.5% to 3,965.34. The Dow Jones Industrial Average added 0.6% to 33,745.69. The Nasdaq composite lost less than 0.1% to 11,146.06.

All the major U.S. indexes ended with a loss for the week after Bullard, president of the St. Louis Federal Reserve Bank, gave a presentation that indicated the Fed’s benchmark rate might have to rise to between 5% and 7%. That would be up from its current level of 3.75% to 4% following four hikes of 0.75 percentage points, three times the Fed’s usual margin.

Investors worry repeated rate hikes by the Fed and central banks in Asia and Europe this year to cool surging inflation might tip the global economy into recession.

Traders hope signs economic activity is slowing and inflation pressures are easing might prompt the Fed to ease off its plans. Fed officials including chair Jerome Powell have warned rates might need to stay high for an extended period to extinguish inflation.

Traders expect the Fed to raise its key rate again at its December meeting but by a smaller margin of 0.5 percentage points.

Big U.S. retailers gained after they reported strong quarterly results and gave investors encouraging financial forecasts. Discount retailer Ross Stores surged 9.9% for the biggest gain among S&P 500 stocks. Shoe seller Foot Locker climbed 8.7% after raising its profit and revenue forecast for the year.

U.S. retail sales rose 1.3% in October in a sign of consumer confidence ahead of Christmas shopping. Still, with inflation high, major retailers say Americans are holding out for sales and refusing to pay full price.

Health care and financial stocks also gained. UnitedHealth Group rose 2.9% and Charles Schwab added 2.5%.

Energy and communications companies declined. Marathon Oil fell 1.6% amid a broad pullback in energy prices. U.S. crude oil settled 1.9% lower. Live Nation, an entertainment promoter and venue operator, slumped 7.8%.

In energy markets, benchmark U.S. crude lost 61 cents to $79.50 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.56 to $80.08 on Friday. Brent crude, the price basis for international oil trading, sank 79 cents to $86.83 per barrel in London. It slumped $2.16 to $87.62 the previous session.

The dollar rose to 140.41 yen from Friday’s 140.36 yen. The euro fell to $1.0283 from $1.0331.

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November 20, 2022
US stocks waver, remain on track to end week with losses

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NEW YORK — Stocks wavered in afternoon trading on Wall Street Friday and are heading for losses for the week after several days of bumpy trading.

The S&P 500 fell 0.2% as of 12:26 p.m. Eastern. The benchmark index had traded as high as 0.8% earlier in the day. The Dow Jones Industrial Average rose 42 points, or 0.1%, to 33,593 and the Nasdaq fell 0.6%.

Small company stocks did better than the the rest of the market. The Russell 2000 rose 0.2%.

Major indexes are all on track for weekly losses.

Health care and financial companies were among the biggest gainers. UnitedHealth Group rose 2.9% and Charles Schwab rose 2%.

Energy stocks fell along with sliding energy prices. U.S. crude oil fell 2.8% and Exxon Mobil fell 1.4%.

Retailers made solid gains after several companies reported strong financial results and gave investors encouraging financial forecasts. Discount retailer Ross Stores surged 10.3% and clothing retailer Gap rose 7.8% after beating analysts’ expectations. Foot Locker rose 2.9% after raising its profit and revenue forecast for the year.

The solid earnings from retailers cap off a shaky week for Wall Street as investors try to get a better sense of inflation’s path and its impact on consumers and businesses. Investors have been particularly anxious about the Federal Reserve’s fight against inflation and have been looking for signs that might allow the central bank to shift to less aggressive interest rate increases. That anxiety was heightened on Thursday after a Fed official suggested U.S. interest rates might have to be raised higher than expected to cool inflation.

“It’s all been the same story for a year,” said Keith Buchanan, portfolio manager at Globalt Investments. “It’s about what inflation is doing, how the Fed responds, and from there how does the consumer respond.”

The central bank has already warned that the main lending rate may have to rise to a more painful level than anybody had anticipated, possibly between 5% and 7%. The Fed’s benchmark rate currently stands at 3.75% to 4%, up from close to zero in March.

The Fed is trying to tame the hottest inflation in decades by making borrowing more difficult and curtailing spending. Several big measures of inflation have shown that prices are easing a bit, but other economic indicators show that consumers remain resilient, as does the jobs market.

The Fed’s strategy risks sending the economy into a recession if it hits the brakes too hard on economic growth. The latest mix of inflation and economic data has Wall Street trying to gauge whether the Fed needs to keep pushing along with interest rate increases and whether it can achieve its goal without severely crimping consumer spending or employment.

The U.S. reported this week that retail sales rose 1.3% in October as Americans increase their spending at stores, restaurants, and auto dealers, a sign of consumer resilience as the holiday shopping season begins. That’s not to say consumer behavior hasn’t been affected by inflation. Major retailers say Americans are holding out for sales, refusing to pay full price, with the cost of gasoline, rent, food and almost everything else much higher than it was last year.

European markets were higher and Asian markets closed mixed overnight.

Bond yields rose. The yield on the 10-year Treasury, which influences mortgage rates, rose to 3.82% from 3.77%.

———

Joe McDonald and Matt Ott contributed to this report.

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November 18, 2022
Oil Could Rise After Latest EU Sanctions on Russia. Why a Rally May Not Last.

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The European Union’s ban on seaborne imports of Russian oil, along with the Group of Seven’s plan to cap prices of oil from Russia early next month won’t guarantee that prices for the commodity will see a lasting rally, or that supplies will tighten further in the days ahead.

“In isolation, the sanctions on Russia should be bullish for prices,” says Matt Smith, lead oil analyst, Americas, at Kpler. However, they may have a limited effect, as Russian barrels get “rerouted and not taken off the market,” while a price cap still has so much uncertainty surrounding it that its impact may be “muted due to workarounds or may simply be ineffective.”

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November 17, 2022
US stocks slip as Target stumbles, weighs on retailers

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NEW YORK — Stocks fell in afternoon trading on Wall Street Wednesday as investors reviewed a dismal financial report from Target and a broader update on the retail sector from the government.

The S&P 500 fell 0.5% as of 12:01 p.m. Eastern. The Dow Jones Industrial Average rose 56 points, or 0.2%, to 33,645 and the Nasdaq fell 1.2%.

Retailers weighed heavily on the market. Target slumped 11.8% after cutting its forecasts for the holiday season following a surprisingly big drop in its third-quarter profits. Auto parts retailer Advance Auto Parts fell 17.4% after reporting weak financial results.

Macy’s, which reports its financial results on Thursday, fell 8.2%.

Big technology companies also fell. Chipmaker Micron slipped 5.6% after announcing some production cuts because of weak demand. Nvidia fell 3.1%.

Wall Street has been closely watching the latest economic updates, including reports that consumer and wholesale prices continue to cool. Much of the market’s prior rally was due to hopes inflation is easing, which could portend less aggressive hikes for interest rates from the Federal Reserve.

The Fed has been raising interest rates in an effort to slow the economy and tame the hottest inflation in decades. Wall Street is worried that it could hit the brakes too hard on economic growth and bring on a recession.

The latest government report on retail sales for October shows that consumer spending remains strong, though it’s unclear whether that’s because of more purchases or higher prices.

Strong consumer spending is typically a good sign for the economy, but it could make the Fed’s strategy of cooling the economy more difficult. The central bank has already hiked its key overnight rate up to a range of 3.75% to 4% from virtually zero earlier this year. It has said it still plans to hike rates further and then to hold them at that high rate for a while in order to grind down inflation.

“The better-than-expected retail sales results don’t bolster the case that the Fed” can ease up on its campaign to slow the economy with high interest rates, said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management.

He said resilient consumer spending could improve the possibility that the Fed manages to pull off a so-called “soft landing” with its strategy. That would involve taming inflation without throwing the economy into a recession, or at least avoiding a damaging recession.

Bond yields were mixed. The yield on the 10-year Treasury, which influences mortgage rates, fell to 3.73% from 3.78% from late Tuesday. The yield on the two-year Treasury rose to 4.37% from 4.35% from late Tuesday.

Wall Street is also closely watching developments in Russia’s war against Ukraine. Tensions appear to have receded slightly after NATO member Poland and the head of the military alliance both said Wednesday there is “no indication” that a missile that came down in Polish farmland, killing two people, was an intentional attack. Air defenses in neighboring Ukraine likely launched the Soviet-era projectile to fend off a Russian assault that savaged its power grid, they said.

“There is nothing, absolutely nothing, to suggest that it was an intentional attack on Poland,” said Polish President Andrzej Duda.

Markets in Europe fell.

The conflict is hanging over the energy market. A worsening war in Ukraine could cause spikes in prices for oil, gas and other commodities that the region produces. U.S. crude oil prices rose 2.7%.

———

Yuri Kageyama and Matt Ott contributed to this report.

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November 16, 2022
Russian oil imports holding up, IEA says as it increases oil-demand view

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More than 1 million barrels a day of Russian oil exports are set to be upended by Western sanctions expected to come into force within weeks, shipments Moscow will struggle to redirect elsewhere which threatens to further tighten global energy markets, the International Energy Agency said Tuesday.

Russian crude oil exports, including to the European Union, were largely unchanged last month, despite the prospect of an imminent EU ban on Russian crude oil imports and a separate plan to cap prices for Russian crude oil sales, the Paris-based agency said in a monthly report.

Russian exports to the EU were 1.5 million barrels a day in October, of which 1.1 million barrels a day will be halted when the bloc’s ban comes into effect on December 5, the IEA said.

It was unclear how much of those supplies Russia would be able to redirect to customers elsewhere in the world, the IEA said. India, China and Turkey have snapped up discounted Russian crude shipments, but buying from those nations has stabilized in recent months, the IEA said. Meanwhile, the volume would be too large for the remaining nations to absorb, the agency said.

The warning comes as the IEA predicted additional demand this year and next would come from China as the nation slowly eases its Covid-19 lockdown measures–though global demand growth will be sluggish as economies are expected to struggle.

The agency upped its 2022 global oil demand forecasts by 170,000 barrels a day to 99.8 million barrels a day. For 2023, the IEA raised its oil demand forecasts by 130,000 barrels a day to 101.4 million barrels a day.

Russia’s declining oil output will drag on global supplies which will grow at an anemic rate next year, failing to keep pace with growing oil demand. The IEA said global oil supplies would rise to 100.7 million barrels a day in 2023, 100,000 barrels a day more than it was forecasting last month, but still 700,000 barrels a day short of the world’s expected appetite for oil
CL.1,
-0.85%

BRN00,
-0.58%.

Write to Will Horner at william.horner@wsj.com

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November 15, 2022
Asian benchmarks mixed as markets eye COVID, inflation risks

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TOKYO — Asian shares were mixed in Monday trading as momentum faded from last week’s rally on Wall Street amid varied sentiments about coronavirus restrictions easing in China and global interest rate increases.

Benchmarks fell in Japan and South Korea, while rising in China. Analysts say some investors are being cheered by signs inflation is abating in the U.S. earlier than initially thought, while they warn factors remain that could refuel inflation, including geopolitical risks.

“But it is far too hasty to declare a decisive conclusion to inflation risks,” said Venkateswaran Lavanya at Mizuho Bank.

Japan’s benchmark Nikkei 225 slipped 0.8% in morning trading to 28,047.58. Australia’s S&P/ASX 200 was little changed, inching up less than 0.1% to 7,163.10. South Korea’s Kospi lost 0.2% to 2,479.52. Hong Kong’s Hang Seng jumped 2.1% to 17,688.84, while the Shanghai Composite rose 0.4% to 3,099.19.

“We also have the Democrats holding the Senate while the Republicans look likely to control the House. Policy paralysis at a time of economic crisis is not a good look for what may lay ahead over the next two years. The current stock rally may have only days to run,” said Clifford Bennett, chief economist at ACY Securities, referring to the U.S. midterm election results.

Wall Street closed last week with a rally, amid hopes inflation pressures had eased. That would make the Federal Reserve less likely to keep raising interest rates. But some analysts said the Wall Street rally was overdone.

The S&P 500 rose 36.56 points, or 5.5%, for its best day in more than two years, to 3,992.93. Its 5.9% gain for the week was its third in the last four and its biggest since June.

The Dow rose 32.49, or 0.1%, to 33,747.86, and the Nasdaq climbed 209.18, or 1.9%, to 11.323.33. Both also notched hefty gains for the week.

Markets are getting a boost from China’s relaxing some of its strict anti-COVID measures, which have been hurting the world’s second-largest economy. Easing of restrictions translates to potentially more growth in China, a definite plus for the Asian region.

A report last week showed inflation in the United States slowed by more than expected last month. The Fed has already lifted its key overnight interest rate to a range of 3.75% to 4%, up from basically zero in March. The likely scenario is still for further hikes into next year.

In energy trading, benchmark U.S. crude gained 22 cents to $89.18 a barrel. U.S. crude gaining 2.9% to $88.96 per barrel Friday. Brent crude, the international standard, added 29 cents to $96.28 a barrel.

In currency trading, the U.S. dollar rose to 139.20 Japanese yen from 138.76 yen. The euro cost $1.0391, down from $1.0356.

———

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

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November 13, 2022
Asian markets mixed ahead of US elections, inflation data

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TOKYO — Asian stocks were mixed Tuesday ahead of the U.S. midterm elections with trading likely to stay bumpy in a week that brings new inflation data and other events that could shake markets.

Tokyo’s Nikkei 225 gained 1.3% to 27,876.20 on strong earnings reports. The Kospi in Seoul advanced 1.1% to 2,397.41 and Australia’s S&P/AXS 200 gained 0.4% to 6,958.90.

Hong Kong’s Hang Seng sank 0.6% to 16,488.44, while the Shanghai Composite index shed 0.8% to 3,052.93. Thailand’s SET gained 0.7%. India’s markets were closed for a holiday.

The week is full of potentially market-moving events, including U.S. inflation data and the election, which could leave the U.S. government split between Democrats and Republicans.

For Tuesday, at least, “Look for markets to trade political headline spin rather than substance,” Stephen Innes of SPI Asset Management said in a commentary.

Every seat in the U.S. House of Representatives is up for election this year, along with about a third of the U.S. Senate. On the line is control of both houses of Congress, currently under Democratic leadership.

Voters are also electing governors in most of the states this year. They’ll be in office in 2024 when the next presidential election happens and could affect election laws or vote certifications. Many state legislative and local authorities also are on the ballot.

A divided government would likely bring gridlock rather than big, sweeping policy changes that could upset tax and spending plans. Historically, when a Democratic White House has shared power with a split or Republican Congress, stocks have seen stronger gains than usual.

On Monday, the benchmark S&P 500 rose 1% to 3,806.80 while the Dow Jones Industrial Average gained 1.3% to 32,827.00 and the Nasdaq composite added 0.9% to 10,564.52.

Analysts say a strong performance by Democrats in the elections could lead to increased spending to help the economy that might fuel inflation and leave the Federal Reserve obliged to continue to hike interest rates to get prices under control.

It may take a while to get clarity because of the process to count votes that came in through the mail.

Economists expect a report Thursday to show the consumer price index rose 8% in October from a year earlier, slightly lower than September’s 8.2% inflation rate.

Regardless of the outcome of Tuesday’s vote, “It is still all about inflation and while this report might not be as hot as the last few, it still should show that rents and the core-service sector part of the economy are still hot,” Edward Moya of Oanda said in a report.

Higher rates put the brakes on the economy by making it more expensive to buy a house, car or anything else on credit, though they take time to take effect. Rate hikes could bring a recession, and they tend to drag on prices for stocks and other investments.

A fourth straight month of moderating inflation from June’s 9.1% rate could afford the Federal Reserve leeway to loosen up a bit. The Fed has said that it may soon dial down the size of its increases to half a percentage point, after pushing through four straight mega increases of three-quarters of a point.

Monday’s gains for Wall Street came despite a shaky showing for its most influential stock. Apple rose 0.4% after dropping earlier in the day. It had warned customers they’ll have to wait longer to get the latest iPhones after anti-COVID restrictions were imposed on a contractor’s factory in China.

Earnings reports are also causing share prices to swing.

The reporting season for summertime profits is roughly 85% done, and S&P 500 companies are on track to deliver growth of a little more than 2%. Analysts are forecasting a drop in S&P 500 profits for the final three months of the year, of nearly 1.5%. They had been forecasting growth of 4% at the end of September.

In other trading, U.S. benchmark crude oil lost 50 cents to $91.29 per barrel in electronic trading on the New York Mercantile Exchange. It lost 82 cents to $91.79 per barrel on Monday.

Brent crude, the international pricing standard, gave up 45 cents to $97.47 per barrel.

The U.S. dollar was unchanged at 146.63 yen. The euro slipped to $1.0008 to $1.0016.

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November 7, 2022
Oil at $200 a Barrel? Some Traders Are Betting on It.

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Oil hasn’t yet climbed back to $100 per barrel, but options traders are increasingly setting their sights on another target—$200. The most actively traded

Brent crude

options contract on Thursday was an option to buy Brent at $200 in March 2023.

About half of the contracts to buy oil at that price appeared to be placed by one buyer who spent about $810,000 on the options, according to Robert Yawger, the director of energy futures at Mizuho Securities USA. But that buyer isn’t the only person making a bet that oil prices will hit $200, along with other bullish bets on where oil goes in 2023. “There have been people dipping their toes into those higher [options strike prices] over the last couple of days,” Yawger said.

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November 7, 2022
Asian benchmarks advance as markets watch China, inflation

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TOKYO — Asian stocks advanced Monday as investors weighed uncertainties such as the U.S. mid-term elections and China‘s possible moves to ease coronavirus restrictions.

Oil prices fell and U.S. futures edged lower.

China reported its trade shrank in October as global demand weakened and anti-virus controls weighed on domestic consumer spending. Exports declined 0.3% from a year earlier, down from September’s 5.7% growth, the customs agency reported Monday. Imports fell 0.7%, compared with the previous month’s 0.3% expansion.

Speculation about a possible relaxation of China’s zero-COVID strategy has had a huge impact on markets. On Monday, Hong Kong’s Hang Seng index gained 2.8% to 16,612.61 and the Shanghai Composite rose 0.2% to 3,077.85.

There has been no official confirmation in China of a major change.

“Over the weekend, Beijing has dashed hopes of China re-opening in the horizon, by reasserting of zero-COVID policies. And this could induce fresh caution,” Tan Boon Heng at Mizuho Bank in Singapore said in a report.

In the U.S., Tuesday’s election will decide control of Congress and key governorships. History suggests the party in power may suffer significant losses in the midterms, and decades-high inflation has become a significant issue for the Democrats.

Analysts say regional markets may take a wait-and-see approach ahead of the U.S. mid-term vote.

Japan’s benchmark Nikkei 225 jumped 1.2% to finish at 27,527.64. Australia’s S&P/ASX 200 gained 0.6% to 6,933.70. South Korea’s Kospi gained nearly 1.0% to 2,371.79.

Shares rose in Taiwan and but edged lower in India.

Wall Street stocks ended last week with a rally but only after yo-yoing several times. Market watchers had data on the U.S. jobs market to digest, considering what it might mean for interest rates and the odds of a recession.

The S&P 500 recorded its first weekly loss in the last three, despite Friday’s gain 1.4% to 3,770.55. The Dow rose 1.3% to 32,403.22, and the Nasdaq climbed 1.3% to 10,475.25. Both also finished with losses for the week.

The unemployment rate ticked higher in October, employers added fewer jobs than they had a month earlier and gains for workers’ wages slowed a touch. The slowdown was still more modest than economists expected. And so the Fed is expected to keep hiking rates.

Fed Chair Jerome Powell has called out a still-hot jobs market as one of the reasons the central bank may ultimately have to raise rates higher than earlier thought. Such moves could cause a recession.

The yield on the two-year Treasury fell to 4.68% from 4.72% late Thursday. The 10-year yield, which helps dictate rates for mortgages and other loans, edged higher to 4.16% from 4.15%.

In energy trading, benchmark U.S. crude fell $1.26 to $91.54 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, lost $1.18 cents in London to $97.39 a barrel.

In currency trading, the U.S. dollar edged up to 147.29 Japanese yen from 146.92 yen. The euro rose to 99.43 cents from 99.15 cents.

———

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

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November 6, 2022