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Tag: Stock prices

  • Trump exaggerates growth in health insurers’ stock prices

    As Democrats push to extend expiring health insurance subsidies, President Donald Trump proposed sending money directly to Americans so they can negotiate with insurers. It’s an approach he says would benefit ordinary people over insurance companies. 

    On Nov. 16, a reporter asked Trump whether he was negotiating with Democrats over the expiring Affordable Care Act subsidies. Trump focused his reply on health insurance companies’ profits.

    “The insurance companies are making a fortune,” Trump said. “Their stock is up over 1,000% over a short period of time. … So when I see this, and when I’ve seen this over the last pretty short period of time, I said, (why don’t) we just pay this money directly to the people of our country and let them buy their own health insurance?”

    Information that Trump appeared to be citing, based on charts he shared separately on social media, measured health insurers’ stock prices over 15 years and showed stock price increases generally in the 500% to 750% range. But the data on the charts stops in 2024, ignoring a period of time when most of these companies’ stock prices have fallen.

    Experts shared Trump’s concern about an overreliance on for-profit insurance providers in the U.S. health care system.

    “More and more of our health care ecosystem is relying on, and in some cases subservient to,  for-profit companies,” including nearly $1 trillion flowing to shareholders through dividends or stock buybacks, said Cary Gross, a Yale University professor of medicine and public health. 

    CEO salaries are a concern, said Dylan H. Roby, a University of California-Irvine professor in population and public health.

    How much did stock prices rise?

    Trump didn’t cite a source when he said health insurance stock is up 1,000%, and the White House did not respond to an inquiry for this article. However, on Nov. 9 Trump posted on Truth Social twice about health insurer stock prices, and data in two charts in those posts appears to overlap with his remark. Although Trump referenced a “short period of time,” each chart shows a span of at least 15 years. 

    One post included a chart with no source credit that tracked the stock price for seven health insurers — Aetna, Centene, Cigna, Elevance (formerly Anthem), Humana, Molina and UnitedHealth Group.

    The chart says one company, UnitedHealth, saw its stock price increase by 1,177% from March 2010 to November 2025. The other six companies did not reach the 1,000% threshold; their increases ranged from a low of 414% (Elevance) to a high of 859% (Molina) during that 15-year period.

    The other chart Trump shared came from Paragon Health Institute, a group headed by Brian Blase, who served as Trump’s special assistant for economic policy during his first term.

    Paragon first published the chart on its website in March 2024. An accompanying blog post said the data showed that health insurer stock prices began rising after the 2014 implementation of the Affordable Care Act, a development the blog post said “produced a windfall for health insurers” to the detriment of taxpayers.

    When we contacted Paragon about how it assembled the data, a spokesperson said the group tracked the stock prices for six large health insurers who sell Affordable Care Act plans — Centene, Cigna, Elevance, Humana, Molina and UnitedHealth Group — from January 2010 to January 2024. 

    Paragon’s chart compares a “market weighted” average of the six large insurers’ stock prices over time to three comparison measures: the broader stock market, a basket of insurance stocks and a basket of health care stocks. 

    The chart shows that the weighted average of health insurer stock prices significantly outpaced the growth of the broader stock market and the health and insurance sectors. The chart shows that by January 2024, the health insurers’ stock price average was about eight times its 2010 level, a 700% increase. The other three benchmarks rose about three to 4.5 times their 2010 level.

    Assuming that he was referencing the Paragon data, Trump omitted key information when speaking Nov. 16.

    The period of time Paragon measured ended in January 2024. Health insurer stock prices have fallen significantly since then, partly because of concerns about the ACA subsidies’ looming expiration and the possibility of other legislative overhauls. Only one of the six insurers, Molina, has seen its stock price increase since January 2024. The other five fell in value, ranging from 6% to 50%, during that period.

    Is there another way to look at the numbers?

    The way Paragon calculated the data made the stock price rise seem especially large, in a way that other methods would not have.

    The Paragon stock price data is “weighted,” meaning it was adjusted for each company’s market capitalization — the value of all of its outstanding shares. Weighting allows multiple companies’ stock prices to be combined into a single measure in a way that gives bigger companies a larger impact on the metric.

    Of the six companies Paragon tracked, UnitedHealth has the largest market capitalization. It also had the most robust stock price growth of any of the companies. So its gains drove the weighted average higher.

    Fact-checking Trump’s claim, however, doesn’t require a weighted average: It’s possible to look at the raw increase of each company’s stock price individually to see if any met his 1,000% increase threshold.

    Using Paragon’s time frame — from January 2010 to January 2024 — the stock prices of UnitedHealth, Centene and Humana grew by 1,000% to 2,027% without weighting. Elevance and Cigna grew by 800% to 900%.

    But measuring stock values from January 2010 to now without weighting, only UnitedHealth meets the 1,000% threshold, at 1,216%. The other five insurers saw increases from 492% to 719%.

    Our ruling

    Trump said stock prices for health insurance companies are “up over 1,000% over a short period of time.”

    Major health insurers have seen stock price increases in recent years, some of them dramatic. 

    Information that Trump has cited before measured health insurers’ stock prices over 15 years and showed stock price increases generally in the 500% to 750% range. But the data on the charts stops in 2024, ignoring a period of time when most of these companies’ stock prices have fallen.

    While major health insurers did experience stock price increases, Trump exaggerated their scale and ignored recent stock price decreases. 

    The statement is partially accurate but leaves out important details. We rate it Half True.

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  • The stock market is breaking records. Time for a gut check

    NEW YORK (AP) — Almost everything in your 401(k) should be coming up a winner now. That makes it time for a gut check.

    Not only is the U.S. stock market setting records, so are foreign stocks. Bond funds, which are supposed to be the boring and safe part of any portfolio, are also doing well this year, along with gold and cryptocurrencies.

    Many professionals along Wall Street are forecasting that the U.S. stock market will keep rising. But the threat of a sharp drop remains, as it always does. That leaves investors with the luxury now, while prices are high, to reassess. Don’t get lulled into leaving your 401(k) on autopilot, unless you’re intentionally doing so, and make sure your portfolio isn’t stuffed with too much risk.

    Here are some things to keep in mind:

    The stock market is doing well?

    Even after a few recent stumbles, the S&P 500 has soared more than 35% from its low point in April, shortly after “Liberation Day.”

    “The market continues to (hit) record highs on the back of strong earnings and easing U.S.–China trade tensions,” said Mark Hackett, chief market strategist at Nationwide, who calls the current state of “steady growth without irrational exuberance” a ”Goldilocks environment.”

    If the market’s so great, why should I worry?

    You don’t need to worry at the moment, but remember that the stock market will fall eventually. It always does.

    The S&P 500 index, which sits at the heart of many 401(k) accounts, has forced investors to swallow a 10% drop every couple of years or so, on average. That’s what Wall Street calls a “correction,” and professional investors see them as ways to clear out excessive optimism that may have pushed prices too high. More serious drops of at least 20%, which Wall Street calls “bear markets,” are less common but can last for years.

    Back in April, the S&P 500 index plunged nearly 20% from its record at the time. But the market came back, propelled by the big tech companies that have led the way the last few years.

    What could trip up the market?

    The stock market has charged to records because investors are expecting several important things to happen. If any fail to pan out, it would undercut the market.

    Chief among those expectations is that big U.S. companies will continue to deliver big growth in profits. That’s one of the few ways they can justify the jumps in their stock prices and quiet criticism that they’ve become too expensive. One popular measure of valuing stocks, which looks at corporate profits over the preceding 10 years, showed the S&P 500 recently was near its most expensive level since the 2000 dot-com bubble.

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  • ‘Top of my list of worries’: Why the stock market’s boom could become America’s biggest risk

    The economy’s biggest risk may not be tariffs or private credit but the stock market itself, where roughly $9 trillion in equity gains over the past year have powered high-income spending that could quickly reverse if portfolios start flashing red instead of green.

    “The surge in stock prices is so key to the well-to-do who are driving consumer spending,” Mark Zandi, Moody’s Analytics chief economist, told Yahoo Finance on Friday. “If that gets turned into reverse and we see stock prices decline, then that’s the real threat to the economy in my mind.”

    Moody’s estimates the top 10% of earners account for about half of all consumer spending, a dynamic that’s kept growth steady even as inflation and tariffs bite lower-income households. That link between spending power and market performance has become increasingly evident amid fresh market swings.

    US stocks rose on Friday as President Trump eased fears of a further trade escalation with China, rebounding from Thursday’s steep losses sparked by renewed worries over private credit. Regional banks, including Zions (ZION) and Western Alliance (WAL), also recovered after reports of fraudulent loans and mounting credit stress added to investor jitters against the backdrop of a prolonged government shutdown.

    Still, Zandi said those risks pale next to what’s building in financial markets, where a sharp reversal could quickly shake the confidence of the wealthy households powering US growth.

    “Of all the risks out there, from what’s going on in the banking system to the government shutdown and everything else, that’s the one that’s at the top of my list of worries,” he said.

    “I’m more sanguine about the banking system,” he added. “I’m less sanguine about financial markets. Valuations are high. …Everything feels a bit juiced, overvalued, bordering on frothy.”

    Zandi warned that froth is directly tied to the same high-income households driving US consumption. That means if market gains unwind, the very group propping up spending could quickly pull back.

    Deborah Weinswig, founder and CEO of Coresight Research, which tracks global retail and consumer trends, said the split between high- and low-income households is at its highest level since January 2020.

    “The high-end consumer right now is still very strong and stronger than we would have even expected,” Weinswig said, noting spending among wealthier shoppers has continued to rise through the fall.

    At the same time, lower-income households are stretching their budgets by visiting more stores per trip, about five or six now versus three before the pandemic, as they hunt for bargains and stack promotions.

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  • Here’s What to Expect From Camden Property Trust’s Next Earnings Report

    Houston, Texas-based Camden Property Trust (CPT) engages in the ownership, management, development, repositioning, redevelopment, acquisition, and construction of multifamily apartment communities. With a market cap of $10.9 billion, Camden operates as one of the major owners of apartments in the United States.

    The real estate major is set to announce its third-quarter earnings after the market closes on Thursday, Nov. 6. Ahead of the event, analysts expect CPT to deliver core funds from operations (CFFO) of $1.69 per share, down 1.2% from $1.71 per share reported in the year-ago quarter. On a positive note, the company has surpassed the Street’s CFFO estimates in each of the past four quarters.

    For the full fiscal 2025, CPT’s CFFO per share is expected to come in at $6.81, marginally down from $6.85 reported in 2024. While in fiscal 2026, its CFFO is expected to grow 2.6% year-over-year to $6.99 per share.

    www.barchart.com

    CPT stock prices have plummeted 14.6% over the past 52 weeks, notably underperforming the Real Estate Select Sector SPDR Fund’s (XLRE) 5.6% decline and the S&P 500 Index’s ($SPX) 13.4% gains during the same time frame.

    www.barchart.com
    www.barchart.com

    Despite delivering better-than-expected results, Camden’s stock prices dipped 2.1% in the trading session following the release of its Q2 results on Jul. 31. The company’s property revenues for the quarter increased 2.4% year-over-year to $396.5 million, beating the consensus estimates by a thin margin. Meanwhile, the company’s cash flows remained under pressure, its core funds from operations (CFFO) decreased by a marginal 18 bps year-over-year to $187.6 million. However, its CFFO per share of $1.70 surpassed the Street’s estimates by 59 bps.

    The drop in CPT stock prices can be attributed to the broader market downturn observed during the trading session, due to the chaos created by President Trump’s tariff announcements.

    Analysts remain cautiously optimistic about CPT’s prospects. The stock maintains a consensus “Moderate Buy” rating overall. Of the 27 analysts covering the stock, opinions include nine “Strong Buys,” one “Moderate Buy,” 14 “Holds,” and three “Strong Sells.” Its mean price target of $121.51 suggests a 19% upside potential from current price levels.

    On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

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  • S&P 500’s $8 trillion rally will be tested by tricky earnings season

    S&P 500’s $8 trillion rally will be tested by tricky earnings season

    Traders are staring down a series of risks after the stock market’s torrid start to the year, from economic fear, to interest rate uncertainty, to election angst. But perhaps the most important variable for whether equities can keep rolling returns to the spotlight this week: corporate earnings.

    The S&P 500 Index has soared roughly 20% in 2024, adding more than $8 trillion to its market capitalization. The gains have largely been driven by expectations of easing monetary policy and resilient profit outlooks. 

    But the tide may be turning as analysts slice their expectations for third-quarter results. Companies in the S&P 500 are expected to report a 4.7% increase in quarterly earnings from a year ago, according to data compiled by Bloomberg Intelligence. That’s down from projections of 7.9% on July 12, and it would represent the weakest increase in four quarters, BI data show.

    “The earnings season will be more important than normal this time,” said Adam Parker, founder of Trivariate Research. “We need concrete data from corporates.“  

    In particular, investors are eager to see if companies are postponing spending, if demand has slowed, and if customers are behaving differently due to geopolitical risk and macro uncertainty, Parker said. “It is exactly because there is a lot going on in the world that corporate earnings and guidance will particularly matter now,” he said.

    Reports from major companies start arriving this week, with results from Delta Air Lines Inc. due Thursday and JPMorgan Chase & Co. and Wells Fargo & Co. scheduled for Friday. 

    “Earnings seasons are typically positive for equities,” said Binky Chadha, chief US equity and global Strategist at Deutsche Bank Securities Inc. “But the strong rally and above-average positioning going in (to this earnings season) argue for a muted market reaction.”

    Obstacles Abound 

    The obstacles facing investors right now are no secret. The US presidential election is just a month away with Democrat Kamala Harris and Republican Donald Trump in a tight, fierce race. The Federal Reserve has just started lowering interest rates, and while there’s optimism about an economic soft-landing, questions remain about how fast central bankers will reduce borrowing costs. And a deepening conflict in the Middle East is raising concerns about inflation heating up again, with the price of West Texas Intermediate oil rising 9% last week, the biggest weekly gain March 2023. 

    Read more: Mideast War Risk Puts Spotlight on Iran’s Quiet Oil Comeback

    “The bottom line is that revisions and guidance are weak, indicating lingering concerns about the economy and reflecting some election year seasonality,” said Dennis DeBusschere of 22V Research. “That is helping set up reporting season as another uncertainty clearing event.”

    Plus, to make matters more challenging, big institutional investors have little buying power at the moment and seasonal market trends are soft.

    Positioning in trend-following systematic funds is now skewed to the downside, and options market positioning shows traders may not be ready to buy any dips. Commodity trading advisers, or CTAs, are expected to sell US stocks even if the market stays flat in the next month, according to data from Goldman Sachs Group Inc. And volatility control funds, which buy stocks when volatility drops, no longer have room to add exposure.

    History appears to side with the pessimists, too. Since 1945, when the S&P 500 gained 20% through the first nine months of the year, it posted a down October 70% of the time, data compiled by Bespoke Investment Research show. The index gained 21% this year through September.

    Bar Lowered

    Still, there’s reason for optimism, specifically a lowered bar for earnings projections that leaves companies more room to beat expectations.

    “Estimates got a little bit too optimistic, and now they’re pulling back to more realistic levels,” said Ellen Hazen, chief market strategist at F.L.Putnam Investment Management. “It will definitely be easier to beat earnings because estimates are lower now.” 

    In fact, there’s plenty of data suggesting that US companies remain fundamentally resilient. A strengthening earnings cycle should continue to offset stubbornly weak economic signals, tipping the scales for equities in a positive direction, according to Bloomberg Intelligence. Even struggling small-cap stocks, which have lagged their large-cap peers this year, are expected to see improving margins, BI’s Michael Casper wrote.

    Friday’s jobs report, which showed the unemployment rate unexpectedly declined, quelled some concerns about a soft labor market. 

    Another factor is the Fed’s easing cycle, which has historically been a boon for US equities. Since 1971, the S&P 500 has posted an annualized return of 15% during periods in which the central bank cut rates, data compiled by Bloomberg Intelligence show. 

    Those gains have been even stronger when rate-cutting cycles hit in non-recessionary periods. In those cases, large caps posted an averaged annualized return of 25% compared with 11% when there was a recession, while small caps gained 20% in non-recessionary periods compared with 17% when there was a recession.

    “Unless earnings are a major disappointment, I think the Fed will be a bigger influence over markets between now and year-end simply because earnings have been pretty consistent,” said Tom Essaye, founder and president of Sevens Report Research. “Investors expect that to continue.” 

    Natalia Kniazhevich, Esha Dey, Bloomberg

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  • Stocks splits are usually bullish. Here are 8 expensive stocks that could get a boost by following Nvidia’s 10-for-1 move.

    Stocks splits are usually bullish. Here are 8 expensive stocks that could get a boost by following Nvidia’s 10-for-1 move.

    Spencer Platt/Getty Images

    • Nvidia is the 8th company this year to announce a forward stock split.

    • Stock splits have no impact on the market value of a company, but they are historically bullish, according to Bank of America.

    • These are eight high-priced S&P 500 stocks that could be the next to enact a split.

    Nvidia last week became the eighth company this year to enact a forward stock split, following the footsteps of mega corporations Walmart in January and Chipotle in March.

    The company will give its investors nine additional shares for every share they own, and it’s stock price will trade at just above $100 per share from its current price of more than $1,000  when its split goes into effect on June 10.

    While stock splits have no impact on the underlying fundamentals of a company, nor do they impact a company’s market value, they are a historically bullish signal, according to an analysis from Bank of America.

    “Average returns one year later are 25% vs. around 12% for the broad market. Splits seem to be bullish across market regimes, something management teams might consider if shares look too expensive for buybacks,” Bank of America said in a note on Thursday.

    Stock splits are bullishStock splits are bullish

    Bank of America

    Forward stock splits are ultimately a sign of strength, as the company’s rising stock price often reflects the growing profits of the underlying business.

    A big reason why companies enact stock splits is that high stock prices can make investing in the company inaccessible to employees and retail investors, which is the main reason Walmart and Nvidia cited in their decision to enact a stock split.

    “Splits do not affect company fundamentals but can increase liquidity by making shares more accessible,” Bank of America said.

    Bank of America said there are about 36 companies in the S&P 500 index with a combined market value of $7.4 trillion are ripe for stock splits, with their stock prices above $500 per share.

    Meanwhile, there are eight S&P 500 companies that are even more likely to split their stock, with a current share price of more than $1,000 per share.

    8. Deckers Outdoor

    DECKDECK

    DECK

    Markets Insider

    Ticker: DECK
    Stock price: $1,033.80
    Market value: $26.5 billion

    7. TransDigm Group

    TDGTDG

    TDG

    Markets Insider

    Ticker: TDG
    Stock price: $1,348.40
    Market value: $75.5 billion

    6. Fair Isaac

    FICOFICO

    FICO

    Markets Insider

    Ticker: FICO
    Stock price: $1,371.89
    Market value: $33.9 billion

    5. Broadcom

    AVGOAVGO

    AVGO

    Markets Insider

    Ticker: AVGO
    Stock price: $1,411.14
    Market value: $654.0 billion

    4. Mettler-Toledo

    MTDMTD

    MTD

    Markets Insider

    Ticker: MTD
    Stock price: $1,474.15
    Market value: $31.5 billion

    3. AutoZone

    AZOAZO

    AZO

    Markets Insider

    Ticker: AZO
    Stock price: $2,790.63
    Market value: $48.3 billion

    2. Booking Holdings

    BKNGBKNG

    BKNG

    Markets Insider

    Ticker: BKNG
    Stock price: $3,795.04
    Market value: $128.7 billion

    1. NVR Inc

    NVRNVR

    NVR

    Markets Insider

    Ticker: NVR
    Stock price: $7,438.82
    Market value: $23.3 billion

    Read the original article on Business Insider

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  • How RealPage influences rent prices across the U.S.

    How RealPage influences rent prices across the U.S.


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    RealPage software is used to set rental prices on 4.5 million housing units in the U.S. A series of lawsuits allege that a group of landlords are sharing sensitive data with RealPage, which then artificially inflates rents. The complaints surface as housing supply in the U.S. lags demand. Some of the defendant landlords report high occupancy within their buildings, alongside strong jobs growth in their operating regions and slow home construction.

    09:56

    Sat, Feb 3 20248:27 AM EST



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  • Which “Magnificent Seven” Stocks Are Screaming Buys Right Now?

    Which “Magnificent Seven” Stocks Are Screaming Buys Right Now?

    The “Magnificent Seven” stocks dominated the market in 2023. The worst performer in the group, Apple (NASDAQ: AAPL), rose 49%, and the best, Nvidia (NASDAQ: NVDA), jumped nearly 240%. But with such strong runs behind them, do any of them have room left to grow in 2024?

    The answer: Yes, and some are still worth buying at their current prices.

    Apple and Nvidia are both richly valued for their performance

    I’m breaking the seven up into buy, sell, and hold groups. Starting with the sell set, I think Apple and Nvidia’s stock prices far outpaced their businesses.

    Nvidia’s 2023 success has been spurred on by the artificial intelligence (AI) arms race, and its business has responded in kind. In its fiscal 2024 third quarter (which ended Oct. 29), revenue rose 206% year over year. Furthermore, management guided for $20 billion in fiscal Q4 revenue, up 231%. The stock’s movement was warranted given the company’s sales growth, but I’m concerned that investors are forgetting that Nvidia operates in a cyclical industry.

    Nvidia goes through boom and bust cycles, and right now is certainly a boom. However, it’s unknown how many AI data centers will need to be built in the near to medium term. If demand for its high-powered chips is satisfied shortly, the stock may come crashing back down to earth. Plus, it’s trading at 65 times earnings — a quite expensive premium.

    From a business standpoint, Apple is the opposite of Nvidia. Its sales declined throughout 2023. Even so, its stock skyrocketed. This makes little sense, and more headwinds are coming up: a U.S. International Trade Commission order this month forced Apple to halt the import and sale of some Apple Watches due to a patent dispute (although a court ruling temporarily allowed sales to resume). With all this in mind, 2024 could be a tough year for the company. And considering that Apple stock has a higher valuation than “Magnificent Seven” members Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Meta Platforms (NASDAQ: META), it doesn’t make a lot of sense to own it compared to its peers.

    Microsoft and Tesla need to show me some results

    I view Microsoft (NASDAQ: MSFT) and Tesla (NASDAQ: TSLA) as holds currently. Microsoft had a strong year, as its revenues and earnings per share (EPS) steadily rose. However, Microsoft trades at a steep premium, even on a forward earnings basis.

    MSFT PE Ratio Chart

    Microsoft is executing well, but its valuation is a bit too much from a historical perspective to consider buying. Still, it’s far from a sell.

    Tesla is one of the hardest companies to value on Wall Street, as its valuation is wrapped up in expectations for future products. It’s also set to face some added headwinds. Starting in 2024, some Tesla models will only qualify for half of the $7,500 federal EV tax credit due to where the automaker sources materials for their batteries and where it produces them.

    When judging whether any given moment is a better time to buy or sell Tesla stock, I like to look at its price-to-earnings and price-to-sales ratio compared to historical trends. For Tesla, these are trading roughly near the midpoint of valuations seen since mid-2022.

    TSLA PE Ratio ChartTSLA PE Ratio Chart

    TSLA PE Ratio Chart

    I’m taking a wait-and-see approach to Tesla stock heading into the new year as the stock doesn’t look like a bargain at these prices.

    Advertising should bounce back in 2024

    That leaves Alphabet, Meta Platforms, and Amazon (NASDAQ: AMZN) in the buy now category. These stocks trade at reasonable levels and are expecting strong tailwinds next year.

    Even though Alphabet and Meta have AI investments, they are mostly advertising businesses. In 2022 and 2023, the advertising market was fairly weak as companies pulled back on their marketing spending due to fears that a recession was coming. However, now that we have lapped that pullback, Alphabet and Meta are posting meaningful growth in their advertising businesses. Their ad revenues grew by 9% and 24%, respectively, in Q3.

    Next year should be another strong recovery year for advertising, which will boost both companies.

    Amazon has also had a strong 2023, with its margins rising.

    AMZN Gross Profit Margin ChartAMZN Gross Profit Margin Chart

    AMZN Gross Profit Margin Chart

    However, this chart doesn’t tell the full story, as this takes into account Amazon’s profits over the past 12 months. If you focus on its latest quarterly results, Amazon’s margins are nearing (or have already set) all-time highs.

    AMZN Gross Profit Margin (Quarterly) ChartAMZN Gross Profit Margin (Quarterly) Chart

    AMZN Gross Profit Margin (Quarterly) Chart

    The fact that Amazon posted solid results in historically weak quarters bodes well for Q4, which is usually its strongest one. No investor knows what a fully profitable Amazon looks like, but 2024 could give us a glimpse, making it a strong buy now.

    Should you invest $1,000 in Nvidia right now?

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    Which “Magnificent Seven” Stocks Are Screaming Buys Right Now? was originally published by The Motley Fool

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  • Stock market news today: US stocks bounce back from worst day in months

    Stock market news today: US stocks bounce back from worst day in months

    US stocks climbed early Thursday in a rebound after the major indexes suffered their worst daily sell-off in months.

    The S&P 500 (^GSPC) popped about 0.8% at the market open, a comeback from the biggest single-day loss for the benchmark index since October. The Dow Jones Industrial Average (^DJI) rose 0.7%, while the teach-heavy Nasdaq Composite (^IXIC) gained 1.2% after both indexes snapped nine-day win streaks.

    Warnings have come from some investors that stocks were ripe for a pullback after a record-breaking rally driven by expectations the Federal Reserve will pivot to cutting interest rates, potentially as soon as March.

    The market has stuck to that conviction despite pushback from central bank officials, keeping stock prices aloft until the rally’s breather on Wednesday.

    Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards

    There was no clear culprit for Wednesday’s sharp slide, and a range were put forward by commentators: Worries about the US economy after bellwether FedEx’s (FDX) downbeat revenue forecast, year-end profit-taking, and zero-day options trading among them.

    In individual stocks, Micron Technology (MU) shares rose more than 8% early Thursday after the memory chipmaker’s second-quarter revenue forecast topped Wall Street’s expectations. The outlook signals a 2024 revival for the memory chip sector, which has suffered a significant slump in prices.

    Live3 updates

    • And the data says…

      A slew of economic data was released at 8:30 a.m. ET on Thursday.

      The final reading of Gross Domestic Product for the third quarter showed the US economy grew 4.9% on annualized basis in the period. This came below the prior reading of 5.2%, which economists had expected to hold.

      Still, it marked the strongest quarter of economic growth since the fourth quarter of 2021.

      Meanwhile, the latest data on initial jobless claims showed 205,000 people filed for unemployment insurance in the week ending December 16, below consensus estimates for 215,000 claims.

      “The claims data – along with other recent labor market statistics – are consistent with a job market that is cooling but not freezing,” Oxford Economics lead US economist Nancy Vanden Houten wrote on Thursday.

    • Stocks open Thursday higher

      US stocks climbed on Thursday, headed for a rebound from their worst daily sell-off in months as nerves settled and the prospect of interest-rate cuts buoyed spirits again.

      S&P 500 (^GSPC) popped about 0.8%, staging a comeback from the biggest single-day loss since October. The Dow Jones Industrial Average (^DJI) rose 0.7%, while the teach-heavy Nasdaq Composite (^IXIC) gained 1.2% after both indexes snapped nine-day win streaks.

      Meanwhile, bond yields fell with the 10-Year Treasury retreating four basis points to 3.83%, its lowest level since late July.

    • Stock futures point to rebound after brutal sell-off

      Stock futures pointed to a rebound Thursday after Wall Street’s biggest sell-off in months.

      Here’s a look at what’s happening today, via Yahoo Finance’s Morning Brief (sign up here!):

      • Economic data: Initial jobless claims, week ended Dec. 16 (215,000 expected, 202,000 previously); Continuing jobless claims, week ended Dec. 9 (1.88 million expected, 1.88 million previously); Third quarter GDP, final estimate (+5.2% annualized rate expected, +5.2% previously); Third quarter personal consumption, final estimate (+3.6% annualized expected; +3.6% previously); Philadelphia Fed business outlook, December (-3 expected, -5.9 previously)

      ‌

      • Earnings: CarMax (KMX), Carnival (CCL), Nike (NKE)

    Click here for in-depth analysis of the latest stock market news and events moving stock prices.

    Read the latest financial and business news from Yahoo Finance

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  • A ‘baby rally’ has taken hold in the stock market this week, and it could lead to bigger gains ahead

    A ‘baby rally’ has taken hold in the stock market this week, and it could lead to bigger gains ahead

    Victoria Parrinello sits inside her father’s booth on the floor of the New York Stock Exchange, November 27, 2015.REUTERS/Brendan McDermid

    • A “baby rally” has unfolded in the stock market that could be the start of a broader year-end rally.

    • That’s according to Fundstrat’s Tom Lee, who highlighted fundamental and technical reasons for a rally.

    • “There are a few structural reasons to expect stocks to have some positive traction in coming weeks,” Lee said.

    A “baby rally” has taken hold of the stock market in recent days, and it could represent the start of a larger year-end surge in stock prices.

    That’s according to a Friday note from Fundstrat’s Tom Lee, who highlighted several fundamental and technical factors that should support stock prices over the next few weeks.

    “Incoming macro developments have been favorable in a way that, in our view, sets the stage for stocks to gain in the near-term,” Lee said. “So far, it is a ‘baby rally’ but this could turn into a larger rally.”

    For one, Lee said that a soft October jobs report “would be unequivocally positive” for stock prices. That’s exactly what happened, with 150,000 jobs added to the economy last month, below consensus estimates for a gain of 180,000 jobs.

    That softness in the jobs report gives the Federal Reserve more breathing room in its trajectory path of interest rates. The 10-year US Treasury yield fell 15 basis points to 4.50% on Friday after hitting a multi-year high of more than 5% last week.

    Meanwhile, corporate earnings results for the third-quarter have remained overwhelmingly positive. So far, 80% of S&P 500 companies have reported earnings, and 82% of those companies beat earnings by a median of 7%, according to data from Fundstrat.

    Other positive fundamentals developing in markets, according to Lee, includes the stock market fear gauge (the VIX) plunging from the 20 level to just above 15, the end of tax loss harvesting trades for mutual funds in October, and a meaningful move lower in long-term interest rates.

    From a technical perspective, Lee said “there are a few structural reasons to have some positive traction in coming weeks.”

    Those reasons include the percentage of stocks trading above their 200-day moving average falling to just 23%, which is a bottom decile reading since 1994. When stocks have gotten this oversold, the median six-month forward gain is 9.7% with a 80% win-ratio, according to Lee.

    Meanwhile, the Nasdaq 100 saw 15 consecutive days when the 5-day return was negative. This has happened only 14 times since 1985, and excluding the dot-com bubble, the median 12-month forward gain was 19% with a 91% win-ratio.

    “These are meaningful quantitative/structural arguments for why a durable bottom was formed in late October. And if so, this is a case for this ‘baby rally’ to strengthen,” Lee said.

    Stock marketStock market

    Fundstrat

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  • The S&P 500 is on the verge of a technical breakdown. Here’s the sell signal to watch for.

    The S&P 500 is on the verge of a technical breakdown. Here’s the sell signal to watch for.

    Spencer Platt/Getty Images

    • The S&P 500 is on the verge of a technical breakdown, according to Fairlead Strategies’ Katie Stockton.

    • Stockton said that 4,180 is a key support level that needs to be preserved to prevent further selling.

    • Extreme sentiment readings suggest to Stockton that a reversal in stock prices could be imminent.

    The S&P 500 is on the verge of a technical breakdown, but Fairlead Strategies’ founder Katie Stockton says don’t sell stocks just yet.

    That’s because oversold extremes are flashing for certain indicators, suggesting that a rebound could be imminent.

    “The downdraft has the potential to yield a breakdown, but we would not sell into weakness with signs of intraday downside exhaustion supporting a rebound that could preserve support, or at least yield a better selling opportunity,” Stockton said in a Thursday note to clients.

    Stockton is closely watch the support range of 4,180 to 4,195 on the S&P 500. A decisive breakdown below 4,180, typically marked by two consecutive weekly closes below that level, would be the signal to Stockton that the current risk-off nature of the stock market is set to extend and drive stock prices even lower.

    Stockton’s support range for the S&P 500 slightly differs from the closely watched 4,200 level among technical analysts. Here’s what Stockton had to say about that on Wednesday.

    “We have to look at these support levels as cushions, not precise points. They never are precise in that there’s just too many market participants to allow them to be that. Our support zone is actually 4,180 to 4,195, so it’s a bit lower than that 4,200 threshold,” Stockton told CNBC on Wednesday.

    If 4,180 fails to hold as support for the S&P 500, Stockton identified 3,920 as the next support level to watch, which represents potential downside of 6% from current levels.

    The S&P 500 traded below 4,180 for the first time since June on Thursday, trading to as low as 4,151.

    But for now, Stockton is anticipating a potential reversal in stock prices in the near-term.

    “We would not assume a breakdown will occur, noting oversold extremes are prevalent not only in price, but also in breadth like the percentage of stocks above their 50-day moving averages,” Stockton said.

    About 17% of S&P 500 stocks are currently trading above their 50-day moving average, which is a level that has been consistent with bottoms during market corrections in the past.

    The missing ingredient for a stock market recovery right now, according to Stockton, is a consolidation in interest rates. If interest rates can stop moving higher, that would be a good sign that stock prices can stage a recovery.

    “The elevated level of the VIX shows fear in the market, so a reversal could be abrupt. We believe consolidation in yields is needed to instill a shift in sentiment, and our indicators suggest that yields may see a prolonged consolidation phase,” Stockton said.

    The 10-year US Treasury yield fell six basis points on Thursday to 4.89%, but it has been consistently testing the 5% level for the past week. If the 10-year yield jumps above 5.04%, that would be a further signal to Stockton that weakness in stock prices could persist.

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  • How Wall Street’s REIT giants are reshaping U.S. real estate

    How Wall Street’s REIT giants are reshaping U.S. real estate

    U.S real estate investment trusts today manage $4.5 trillion in real estate worldwide. Many groups on Wall Street offer these tax-friendly funds to retail investors. 

    KKR’s real estate business is one of the big players in the REIT game. The private equity firm manages multiple REIT funds. The KKR Real Estate Select Trust, which currently manages $1.5 billion in assets, paid a dividend of 5.4% to its investors in July 2023.

    But the benefits extend beyond returns.

    “When you look at the after tax equivalent of that yield, it is very compelling.” said Billy Butcher, CEO of KKR’s global real estate business. “The depreciation from our properties has covered 100% of the income generated by our properties, and there’s no tax on that dividend,” he said in an interview with CNBC.

    Larger funds sometimes contain a diversified pool of assets. Categories may include office, student housing, casino, timberlands, radio and cell towers, server farms, self-storage properties, billboards, and much more.

    “Back in the 1960s, there were three or four different types [of REITs], said Sher Hafeez, a managing director at Jones Lang LaSalle, a real estate services firm. “Now, I can count at least 20 different types.”

    Top performing REIT sub-sectors in recent years include data centers, self-storage properties, residential housing and tower REITs. Residential housing delivered a return of 16% from 2010 to 2020, according to a S&P Global Investments report.

    The investor-friendly tax rules can also increase the pace of large-scale development. 

    “Having REITs there as a potential exit helps the market, and helps the availability of financing,” said Michael Pestronk, CEO and co-founder of Post Brothers, a Philadelphia-based housing developer. 

    Some funds like Invitation Homes and American Homes 4 Rent were founded in the yearslong slowdown in U.S. home construction. At the time, REITs bought and managed commercial-scale properties, which could include products like master-planned communities or traditional apartment complexes.

    In recent years, publicly traded trusts have targeted single-family rental market, and today, these REITs have grown tremendously — enough to build new neighborhoods in their entirety. 

    Watch the video above to learn the fundamentals of real estate investment trusts.

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  • Here’s what’s stopping cities from converting offices into apartments

    Here’s what’s stopping cities from converting offices into apartments

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    Some U.S. mayors are loosening up rules that determine how developers convert office buildings into apartment complexes. The conversion trend sped up in the 2020s, as the Covid pandemic remote work boom reshaped cities. Declines in office leasing activity is constraining funding for services like education and transit, leading some local leaders to prioritize conversion of dated buildings. These rule changes may create some additional housing supply in regions like the U.S. East Coast.

    11:46

    Sat, Jul 15 20237:00 AM EDT

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  • Asian shares sink on revived worries over recession, China

    Asian shares sink on revived worries over recession, China

    BANGKOK — Shares retreated in Europe and Asia on Friday ahead of the release of U.S. jobs data.

    Optimism over moves by China to ease strict pandemic controls appeared to have faded, replaced by worries over indications recession may be looming.

    Oil prices fell as the European Union was edging closer to a $60-per-barrel price cap on Russian oil in a maneuver designed to keep Russian oil flowing into global markets while clamping down on President Vladimir Putin’s ability to fund his war in Ukraine.

    U.S. benchmark crude oil lost 16 cents to $81.06 per barrel in electronic trading on the New York Mercantile Exchange. It gained 67 cents to $81.22 per barrel on Thursday.

    Brent crude oil, the standard for pricing oil for international trading, shed 6 cents to $86.82 a barrel.

    Germany’s DAX was flat at 14,489.59 and the CAC 40 in Paris lost 0.5% to 6,723.62. Britain’s FTSE 100 gave up 0.5% to 7,522.46.

    The futures for the S&P 500 and the Dow Jones Industrial Average were 0.1% lower.

    Action was muted as traders awaited a closely watched monthly report on jobs due out Friday that will show how the labor market is holding up, which may influence what the Fed does next in its bid to cool inflation.

    A moderate reading might improve buying sentiment, said Ipek Ozkardeskaya of Live.com, given that “investors are dying to price in the goldilocks scenario, which is the sweet combination of slowing inflation, but a mild economic slowdown, which means mild deterioration in the U.S. jobs data.”

    Shares fell in New York on Thursday after a U.S. measure of inflation that’s closely watched by the Federal Reserve eased in October, raising questions over the central bank’s determination to keep raising interest rates to tame price increases.

    A report by the Institute for Supply Management also showed that prices are falling and that American manufacturing contracted in November for the first time since May 2020.

    Slower growth due to tighter monetary policies has slowed new orders and order backlogs, “which saw manufacturing conditions contracting for the first time since June 2020,” Jun Rong Yeap of IG said in a report. That may suggest that with “inflation risks behind us now, ‘bad news’ in economic data may not be ‘good news’ for markets as recession fears could be brewing,” he said.

    Signs of weakening trade, especially for export dependent economies in Asia, have deepened worries over slowing growth in China and its implications for the global economy.

    Tokyo’s Nikkei 225 index lost 1.6% to 27,777.90 and the Hang Seng in Hong Kong fell 0.3% to 18,675.35. The Kospi in Seoul shed 1.8% to 2,434.33.

    The Shanghai Composite index gave up 0.3% to 3,156.14 and Australia’s S&P/ASX 200 slipped 0.7% to 7,301.50.

    Bangkok’s SET index lost 0.5% and the Sensex in Mumbai was down 0.7%.

    The declines followed a 0.1% retreat Thursday in the benchmark S&P 500. The Dow industrials fell 0.6%, while the Nasdaq edged 0.1% higher. The Russell 2000 index of small companies fell 0.3%.

    Markets rallied Wednesday after Fed Chair Jerome Powell the central bank could begin moderating its pace of rate hikes at its next meeting in mid-December. The Fed, though, has been very clear about its intent to continue raising interest rates until it is sure that inflation is cooling.

    A big concern for Wall Street has been whether the Fed can tame rates without sending the economy into a recession as it hits the brakes on growth. Businesses are seeing demand fall for a wide range of goods as inflation squeezes wallets. Analysts generally expect the U.S. to dip into a recession, even if it is mild and short, at some point in 2023.

    In currency dealings, the U.S. dollar slipped to 133.90 Japanese yen from 135.31 yen late Thursday. The euro rose to $1.0540 from $1.0522.

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  • Stocks waver on Wall Street ahead of speech by Fed chair

    Stocks waver on Wall Street ahead of speech by Fed chair

    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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  • How major US stock indexes fared Friday 11/25/2022

    How major US stock indexes fared Friday 11/25/2022

    Stocks wobbled to a mixed close on Wall Street, but every major index notched weekly gains in a holiday-shortened week.

    The S&P 500 edged lower Friday. The Dow Jones Industrial Average rose and the Nasdaq fell. Technology stocks were the biggest drags on the broader market. Markets were closed on Thursday for the Thanksgiving holiday and closed at 1 p.m. Eastern Friday.

    Long-term bond yields were relatively stable and crude oil prices fell. Global shares were mixed amid worries about China’s lockdowns and restrictions to curb the spread of coronavirus infections.

    On Friday:

    The S&P 500 fell 1.14 points, or less than 0.1%, to 4,026.12.

    The Dow Jones Industrial Average rose 152.97 points, or 0.4%, to 34,347.03.

    The Nasdaq fell 58.96 points, or 0.5%, to 11,226.36.

    The Russell 2000 index of smaller companies rose 5.67 points, or 0.3%, to 1,869.19.

    For the week:

    The S&P 500 is up 60.78 points, or 1.5%.

    The Dow is up 601.34 points, or 1.8%.

    The Nasdaq is up 80.29 points, or 0.7%.

    The Russell 2000 is up 19.46 points, or 1.1%.

    For the year:

    The S&P 500 is down 740.06 points, or 15.5%.

    The Dow is down 1,991.27 points, or 5.5%.

    The Nasdaq is down 4,418.61 points, or 28.2%.

    The Russell 2000 is down 376.12 points, or 16.8%.

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  • Asian shares mixed as investors eye Tokyo inflation data

    Asian shares mixed as investors eye Tokyo inflation data

    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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  • How major US stock indexes fared Friday 11/18/2022

    How major US stock indexes fared Friday 11/18/2022

    Stocks ended higher on Wall Street but still wound up with weekly losses after several days of bumpy trading.

    Some retailers posted big gains after reporting surprisingly strong quarterly results and giving investors encouraging forecasts. Gap, Ross Stores and Foot Locker all rose sharply. Energy stocks fell along with crude oil prices.

    The S&P 500 rose Friday. The Nasdaq ended just barely in the green and the Dow Jones Industrial Average rose. The yield on the 10-year Treasury note, which helps set mortgage rates, gained ground.

    On Friday:

    The S&P 500 rose 18.78 points, or 0.5%, to 3,965.34.

    The Dow Jones Industrial Average rose 199.37 points, or 0.6%, to 33,745.69.

    The Nasdaq rose 1.10 points, or less than 0.1%, to 11,146.06.

    The Russell 2000 index of smaller companies rose 10.61 points, or 0.6%, to 1,849.73.

    For the week:

    The S&P 500 is down 27.59 points, or 0.7%.

    The Dow is down 2.17 points, or less than 0.1%.

    The Nasdaq is down 177.27 points, or 1.6%.

    The Russell 2000 is down 33.01 points, or 1.8%.

    For the year:

    The S&P 500 is down 800.84 points, or 16.8%.

    The Dow is down 2,592.61 points, or 7.1%.

    The Nasdaq is down 4,498.91 points, or 28.8%.

    The Russell 2000 is down 395.58 points, or 17.6%.

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  • US stocks waver, remain on track to end week with losses

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

    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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  • Blizzard, NetEase gaming partnership in China to end

    Blizzard, NetEase gaming partnership in China to end

    HONG KONG — American game developer Blizzard Entertainment said Thursday that it will suspend most of its game services in mainland China after current licensing agreements with Chinese games company NetEase end, sending NetEase’s shares tumbling.

    Blizzard, which partnered with NetEase in 2008 to offer popular games like World of Warcraft, Overwatch and Diablo in mainland China, said in a statement the two companies did not reach a deal to renew the agreements “that is consistent with Blizzard’s operating principles and commitments to players and employees.”

    The partnership is set to expire in January next year. Blizzard said that new sales will be “suspended in the coming days.”

    NetEase shares plunged as much as 15% in Hong Kong following the news.

    In a statement, NetEase said that the expiration of its licenses with Blizzard would have “no material impact” on the company’s financial results.

    The company said revenues and income from the licensed Blizzard games represented “low single digits” as a total percentage of NetEase’s total revenues and income last year, and in the first three quarters of 2022.

    “We have put in a great deal of effort and tried with our utmost sincerity to negotiate with Activision Blizzard so that we could continue our collaboration and serve the many dedicated players in China,” William Ding, CEO of NetEase, said in the statement. “However, there were material differences on key terms and we could not reach an agreement.”

    Blizzard Entertainment CEO Mike Ybarra said that the firm is looking for alternatives to bring the games back to Chinese players in the future.

    “We’re immensely grateful for the passion our Chinese community has shown throughout the nearly 20 years we’ve been bringing our games to China through NetEase and other partners,” Ybarra said.

    The games affected by the suspension are World of Warcraft, the StarCraft series, Hearthstone, Heroes of the Storm, Overwatch and Diablo III.

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