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Tag: Stocks and bonds

  • Asian shares decline following Wall Street tumble

    Asian shares decline following Wall Street tumble

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    TOKYO — Asian shares declined Wednesday after stocks tumbled on Wall Street as worries persist about higher interest rates and their tightening squeeze on the global economy.

    Tokyo’s benchmark Nikkei 225 dipped 1.4% in afternoon trading to 27,102.21. Australia’s S&P/ASX 200 slipped 0.3% to 7,314.50. South Korea’s Kospi dropped 1.6% to 2,419.15. Hong Kong’s Hang Seng slipped 0.3% to 20,461.32, while the Shanghai Composite shed 0.6% to 3,287.64.

    New Zealand’s central bank raised its benchmark interest rate by a half-point to 4.75% to try to wrestle down inflation. The increase, which can raise the borrowing costs for consumers on everything from credit cards to mortgages, comes despite widespread economic pain from a devastating cyclone.

    Higher rates hurt investment prices and raise the risk of a recession by slowing business investment and consumer spending.

    U.S. employment and consumer spending have weathered higher interest rates well, but a report Tuesday showed sales of previously occupied homes slowed to their slowest pace in more than a decade. The mixed signals leave investors wondering if the Fed will ease back on rate hikes or resume a more aggressive stance.

    “Amid the evolving new narrative of stronger US growth, payrolls, retail sales, and the additional Fed response required to tame the rude health of the US economy, investors are beginning to think the hawkish Fed may not have entirely run its course yet,” Stephen Innes of SPI Asset Management said in a commentary.

    The S&P 500 fell 2% to 3,997.34 on Tuesday for its sharpest drop since the market was selling off in December. The Dow Jones Industrial Average lost 697 points, or 2.1%, to 33,129.59 while the Nasdaq composite sank 2.5% to 11,492.30.

    Home Depot fell to one of the market’s larger losses after giving financial forecasts that fell short of Wall Street’s expectations. It dropped 7.1% despite reporting stronger profit for the last three months of 2022 than expected.

    The retailer said it would spend $1 billion to increase wages for hourly U.S. and Canadian workers. That fed into broader worries for markets that rising costs for companies have been eating into profits, which are one of the main levers that set stock prices.

    Rates and stock prices are high enough that strategists at Morgan Stanley say U.S. stocks look to be more expensive than at any time since 2007.

    The yield on the 10-year Treasury, which helps set rates for mortgages and other important loans, leaped further to 3.95% from 3.82% late Friday. The two-year yield, which moves more on expectations for the Fed, rose to 4.72% from 4.62%. It’s close to its highest level since 2007.

    Yields have shot higher this month as Wall Street ups its forecasts for how high the Federal Reserve will take short-term interest rates in its efforts to stamp out inflation. The Fed has already pulled its key overnight rate up to a range of 4.50% to 4.75%, up from basically zero at the start of last year.

    The worry is that the Fed could ratchet up its forecasts for rates further next month when it releases its latest projections for the economy. Besides showing more strength in the job market and retail sales than expected, recent reports have also suggested inflation is not cooling as quickly and as smoothly as hoped. Investors are also pushing back their forecasts for when the first cut to rates could happen.

    Those worries have caused the strong rally by Wall Street early in the year to stall. Having risen as much as 8.9%, the S&P 500 is now clinging to a gain of 4.1% for the year so far.

    In other trading Wednesday, benchmark U.S. crude lost 35 cents to $76.01 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international pricing standard, fell 37 cents to $82.68 a barrel.

    The U.S. dollar fell to 134.85 Japanese yen from 134.92 yen. The euro rose to $1.0659 from $1.0653.

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

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  • Saudi wealth fund becomes biggest outside Nintendo investor

    Saudi wealth fund becomes biggest outside Nintendo investor

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    DUBAI, United Arab Emirates — A Saudi sovereign wealth fund now holds 8.26% of the stock in the video game maker Nintendo, making it the largest outside investor in the Japanese gaming outfit, a company filing said Friday.

    The investment comes as part of efforts by the kingdom’s Public Investment Fund to diversify Saudi Arabia‘s economy away from oil, including billions already spent on video game firms. The fund has been a major component in the plans of Saudi Crown Prince Mohammed bin Salman, himself said to be an avid gamer.

    The Public Investment Fund declined to comment Friday night about its increased stakes in Nintendo.

    However, the purchase of Nintendo and other gaming stocks entangles the video game companies into the politics surrounding Saudi Arabia and its assertive 37-year-old crown prince. American intelligence agencies believe Prince Mohammed ordered the slaying of Washington Post columnist Jamal Khashoggi in 2018.

    Nintendo did not immediately respond to a request for comment regarding Saudi investment.

    A filing to Japanese regulators on Friday revealed the Public Investment Fund’s holding in Kyoto-based Nintendo. Saudi Arabia has been steadily building its stake over recent months in the company, best known for its Super Mario Brothers franchise and its Nintendo Switch gaming console.

    The Saudi fund remains behind Nintendo’s own holdings in the gaming company. Nintendo is valued at $52 billion.

    Nintendo stock closed slight down Friday on the Tokyo Stock Exchange at $40.50 a share.

    The Public Investment Fund did not immediately acknowledge increasing its holdings in Nintendo. It runs the Savvy Games Group, which aims to establish 250 gaming companies in Saudi Arabia and create 39,000 jobs. Savvy Games plans to invest some $38 billion into the gaming industry over the coming years.

    Already, the Saudi wealth fund holds stock worth $2.9 billion in Activision Blizzard, $1.7 billion in Electronic Arts, $1.2 billion stake in Take-Two Interactive, according to data from the Nasdaq Stock Market.

    The Saudi expansion into gaming, however, has sparked criticism. Riot Games, which makes the popular online multiplayer game League of Legends, cancelled a partnership with Prince Mohammed’s planned futuristic city Neom in 2020 after an outcry from gamers.

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    Follow Jon Gambrell on Twitter at www.twitter.com/jongambrellAP.

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  • Wall Street sinks on worries about high inflation, rates

    Wall Street sinks on worries about high inflation, rates

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    NEW YORK — Stocks are sinking on Wall Street Thursday on worries that inflation is remaining hotter than feared.

    The S&P 500 was 1.1% lower in early trading after a report showed inflation at the wholesale level slowed by less last month than economists forecast. It echoed a report on prices at the consumer level from earlier this week that showed inflation may not be cooling as quickly and as smoothly as hoped.

    The Dow Jones Industrial Average was down 287 points, or 0.8%, at 33,840, as of 9:40 a.m. Eastern time, while the Nasdaq composite was 1.2% lower.

    Stocks have been churning recently as worries about sticky inflation joust against data showing the economy remains more resilient than feared. The worry has been that persistently high inflation will push the Federal Reserve to get even more aggressive on interest rates. Higher rates can drive down inflation but also drag on investment prices and raise the risk of a serious recession.

    Such fears have been most clear in the bond market, where yields have leaped in recent weeks as traders up their bets for how high the Fed will take interest rates this year.

    The yield on the two-year Treasury, which tends to track expectations for Fed action, jumped to 4.64% from less than 4.60% before the inflation report’s release and from less than 4.10% earlier this month. It’s near its highest level since November, when the yield reached levels last seen in 2007 before the Great Recession.

    The 10-year Treasury yield, which helps set rates for mortgages and other loans, rose to 3.84% from 3.80% late Wednesday.

    Thursday’s report showed that prices at the wholesale level were 6% higher last month than a year earlier. While that was a slowdown from December’s 6.5% inflation rate, it was worse than the 5.4% that economists expected to see. Perhaps more alarming was that inflation accelerated in January on a month-to-month basis even after stripping out prices for food, energy and other layers.

    The inflation report thudded onto Wall Street along with a batch of other data painting a mixed picture of the economy.

    Fewer workers applied for jobless benefits last week than expected, a sign that layoffs remain low across the economy. That’s good news for workers and another sign of strength for the job market, but the Fed worries it could also add upward pressure on inflation.

    Other reports, meanwhile, showed an index of manufacturing activity in the mid-Atlantic region plunged this month, while homebuilders broke ground on fewer homes last month than economists expected.

    Altogether, the reports raised doubt about the budding hopes on Wall Street that the Federal Reserve could pull off the tightrope walk of slowing the economy just enough to stamp out inflation but not so much that it creates a severe recession.

    The Fed has already hiked its key overnight rate up to a range of 4.50% to 4.75%, up from basically zero a year ago. It has said that it expects to push through a couple more increases before holding rates at a high level at least through the end of this year.

    The strong recent reports on inflation and the job market have forced Wall Street to align its forecasts for rates closer to the Fed’s. Earlier this year, there was a wide disconnect between them. Investors were betting the Fed wouldn’t go as high as it was saying, while also holding out significant hopes for a cut to rates in the latter part of the year.

    The fear now is that if inflation proves sticker than expected that the Fed will have to go beyond what it’s been prepping the market for.

    Some stocks on Wall Street were able to buck the overall downward trend after reporting stronger earnings for the latest quarter than expected. Networking giant Cisco Systems rose 5.8%, and waste services company Republic Services gained 2.6%.

    Big tech stocks were helping to lead the overall market lower, though, because they’re seen as some of the most vulnerable to higher interest rates. In earlier years, their stocks shot higher in part because of record-low interest rates.

    A 2.1% fall for Microsoft, 2.7% drop for Nvidia and 2.3% slide for Amazon were some of the heaviest weights on the S&P 500.

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    AP Business Writers Yuri Kageyama and Matt Ott contributed.

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  • Stocks slip on Wall Street amid fears about inflation, rates

    Stocks slip on Wall Street amid fears about inflation, rates

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    NEW YORK — Stocks are slipping on Wall Street Wednesday after a report showed U.S. shoppers opened their wallets at retail stores last month by much more than expected.

    The S&P 500 was 0.6% lower in morning trading. The Dow Jones Industrial Average was down 198 points, or 0.6%, at 33,890, as of 10:07 a.m. Eastern time, and the Nasdaq composite was 0.6% lower.

    Sales at U.S. retailers jumped more than expected last month, even as shoppers contend with higher interest rates on credit cards and other loans. The surprising strength offers hope that the most important part of the U.S. economy, consumer spending, can stay afloat despite worries about a possible recession looming. It’s the latest piece of data to show the economy remains more resilient than feared.

    At the same time, though, the strong buying potentially adds more fuel to inflation, which a report earlier this week showed is cooling by less than expected. Upward pressure on inflation could force the Federal Reserve to stay more aggressive in keeping interest rates high.

    High rates can drive down inflation, but they also drag on investment prices and raise the risk of a painful recession.

    The worries about higher rates and a firmer Fed have been most evident in the bond market, where yields on Treasurys have jumped since a report two Fridays ago showed the U.S. job market remains stronger than expected.

    The yield on the two-year Treasury, which tends to track expectations for the Fed, briefly jumped toward 4.70% after the retail sales report, up from less than 4.60% overnight and from 4.62% late Tuesday. It then dropped back to 4.60%, which is still near its highest level since November.

    The 10-year yield, which helps set rates for mortgages and other important loans, held steady at 3.75%.

    Following Tuesday’s data on inflation that was slightly hotter than expected, economists at Deutsche Bank raised their forecast for how high the Fed will take its key overnight interest rate. They now see it ultimately rising to 5.6%, up from their prior forecast of 5.1%.

    The Fed has already pulled its overnight rate all the way to a range of 4.50% to 4.75%, up from virtually zero a year ago.

    The Deutsche Bank economists said they still expect a recession, but that the near-term strength in the economy could push its timing into the last three months of the year, later than they earlier thought.

    Many other traders have also been raising their forecasts for how high the Fed will ultimately take interest rates. They’ve also sharply reduced bets for the Fed to cut rates late this year.

    Even still, stocks are hanging onto healthy gains for the year despite some recent rockiness. The S&P 500 is up 7% as strong data reports build hope that the economy may be able to avoid a recession. Or, if one hits, perhaps it may be only a short and shallow one.

    On Wall Street, shares of Airbnb jumped 12.6% after reporting stronger profit and revenue for its latest quarter than analysts expected. It also said trends remain encouraging into the new year, and it gave a forecast for revenue that topped Wall Street’s.

    On the losing end were stocks of energy producers, which dropped with the price of oil. A barrel of U.S. crude slipped 0.8% to $78.39, while Brent crude, which is the international standard, fell 1.3% to $84.50. Energy stocks in the S&P 500 fell 2.2%, by far the worst performance of the 11 sectors that make up the index.

    One of the sharpest drops in the S&P 500 came from Devon Energy, which fell 11.8% after reporting weaker profit for the latest quarter than expected.

    This earnings reporting season has been muted, with many companies reporting pressure on their profits from high costs and interest rates.

    In stock markets abroad, Turkey’s market jumped nearly 10% after trading reopened following a closure caused by the devastating earthquake in the region.

    European stocks were modestly higher, with Germany’s DAX returning 0.7%. Asian stocks were weaker, with Hong Kong’s Hang Seng down 1.4% and South Korea’s Kospi down 1.5%.

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  • Wall Street drifts, heading for worst week since December

    Wall Street drifts, heading for worst week since December

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    NEW YORK — Wall Street is drifting on Friday as stocks head toward the close of their worst week since December.

    The S&P 500 was virtually unchanged in afternoon trading after flipping between small gains and losses. It’s on pace for a 1.4% loss for the week. The Dow Jones Industrial Average was up 102 points, or 0.3%, at 33,805, as of 1:10 p.m. Eastern time, while the Nasdaq composite was 0.9% lower.

    Stocks have been struggling since rallying at the start of the year on hopes that the economy could avoid a severe recession and that cooling inflation could get the Federal Reserve to take it easier on interest rates. Since late last week, worries have risen that a still-strong jobs market could up the pressure on inflation and keep the Fed on track to leave rates at the higher-for-longer level that it’s been talking about.

    Higher rates can drive down inflation but they also raise the risk of a recession and drag down investment prices. And central banks around the world are intent on tightening the screws further by raising rates, even if at a slower pace than before.

    “For most central banks the risk is that they have tightened too little, not too much,” economists led by Ethan Harris wrote in a BofA Global Research report.

    “The ultimate gauge of success here is not avoiding a recession, but getting inflation on a path back to target,” Harris wrote.

    Investors will get more updates on inflation next week when the government reports January data for prices at both the consumer and wholesale levels.

    The worries about rates mean much of Wall Street’s action has been in the bond market, where yields have climbed on expectations for a firmer Fed. The yield on the 10-year Treasury, which helps set rates for mortgages and other important loans, rose to 3.72% from 3.66% late Thursday. The two-year yield, which moves more on expectations for the Fed, ticked up to 4.50% from 4.48%. It was at 4.08% just over a week ago and is near its highest level since November.

    One area the Fed has focused on keeping under control is expectations for inflation among U.S. households. If those took off, the fear is that a self-reinforcing cycle could take hold that only worsens inflation.

    A preliminary report Friday showed expectations for year-ahead inflation rose to 4.2% from from 3.9% in January, according to the University of Michigan. But that’s still down from 4.4% in December. The report also showed mixed sentiment about the economy, though the overall reading was a bit better than expected.

    Companies in recent weeks have also been delivering a mixed set of earnings reports for the end of 2022.

    Lyft tumbled 36.3% following its latest report. The ride-hailing company gave a forecast for revenue in the first three months of 2023 that fell short of analysts’ expectations.

    Newell Brands, whose brands include Sharpie markers and Calphalon cookware, fell 1.5% despite reporting stronger revenue and profit for the latest quarter than analysts expected. Forecasts for revenue and earnings this upcoming year were below analysts’ forecasts.

    Given worries about still-high inflation and a slowing economy eating into corporate profits, analysts have been cutting their forecasts for upcoming earnings for companies. So far this year, analysts have cut their expectations for S&P 500 companies’ first-quarter earnings by 4.5%, according to strategists at Credit Suisse. That’s a deeper cut than average.

    News Corp. fell 7.5% after the owner of The Wall Street Journal and other media reported weaker quarterly results than expected. It also said it will cut 5% of its workforce in 2023 as it contends with higher interest rates and inflation. Layoff announcements have been spreading across more industries after earlier focusing mostly on the tech sector.

    Expedia lost 8.3% after reporting weaker profit and revenue for the latest quarter than expected.

    On the winning side of Wall Street were energy stocks, which rose with the price of crude oil. Marathon Oil climbed 5.1%, and Valero Energy gained 5.6%.

    Oil prices rose after Russia announced Friday that it will cut oil production by 500,000 barrels per day next month. Western countries had capped the price of Russia’s crude over its invasion of Ukraine. Brent crude, the international standard, rose 1.6% to $86.01 per barrel.

    Benchmark U.S. crude added 1.7% to $79.37 per barrel.

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    AP Business Writers Damian J. Troise, Yuri Kageyama and Matt Ott contributed.

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  • Wall Street dips, stocks head for worst week since December

    Wall Street dips, stocks head for worst week since December

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    NEW YORK — Wall Street is drifting lower on Friday as stocks head toward the close of their worst week since December.

    The S&P 500 was little changed in morning trading and on pace for a 1.3% loss for the week. The Dow Jones Industrial Average was up 41 points, or 0.1%, at 33,747, as of 10:09 a.m. Eastern time, while the Nasdaq composite was 0.6% lower.

    Stocks have been struggling since rallying at the start of the year on hopes that the economy could avoid a severe recession and that cooling inflation could get the Federal Reserve to take it easier on interest rates. Since late last week, worries have risen that a still-strong jobs market could up the pressure on inflation and keep the Fed on track to leave rates at the higher-for-longer level that it’s been talking about.

    Higher rates can drive down inflation but they also raise the risk of a recession and drag down investment prices. And central banks around the world are intent on raising rates, even if at a slower pace than before.

    “For most central banks the risk is that they have tightened too little, not too much,” economists led by Ethan Harris wrote in a BofA Global Research report.

    “The ultimate gauge of success here is not avoiding a recession, but getting inflation on a path back to target,” Harris wrote.

    The worries about rates mean much of Wall Street’s action has been in the bond market, where yields have climbed on expectations for a firmer Fed.

    The yield on the 10-year Treasury, which helps set rates for mortgages and other important loans, rose to 3.70% from 3.66% late Thursday. The two-year yield, which moves more on expectations for the Fed, ticked up to 4.50% from 4.48%. It was at 4.08% just over a week ago and is near its highest level since November.

    One area the Fed has focused on keeping under control is expectations for inflation among U.S. households. If those took off, the fear is that it could create a self-reinforcing cycle that only worsens inflation.

    A preliminary report on Friday showed that expectations for year-ahead inflation rose to 4.2% from from 3.9% in January, according to the University of Michigan. But that’s also down from 4.4% in December.

    Companies have also in recent weeks been delivering a mixed set of earnings reports for the end of 2022. Lyft tumbled 35% following its latest report. The ride-hailing company gave a forecast for revenue in the first three months of 2023 that fell short of analysts’ expectations.

    Newell Brands, whose brands include Sharpie markers and Calphalon cookware, fell 6.3% despite reporting stronger revenue and profit for the latest quarter than analysts expected. Forecasts for revenue and earnings this upcoming year were below analysts’ forecasts.

    Given worries about still-high inflation and a slowing economy eating into corporate profits, analysts have been cutting their forecasts for upcoming earnings for companies. So far this year, analysts have cut their expectations for S&P 500 companies’ first-quarter earnings by 4.5%, according to strategists at Credit Suisse. That’s a deeper cut than average.

    Expedia lost 6.9% after reporting weaker profit and revenue for the latest quarter than expected.

    Oil prices rose after Russia announced Friday that it will cut oil production by 500,000 barrels per day next month. Western countries had capped the price of Russia’s crude over its invasion of Ukraine. Brent crude, the international standard, rose 1.5% to $85.79 per barrel.

    Benchmark U.S. crude added 1.6% to $79.27 per barrel.

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    AP Business Writers Yuri Kageyama and Matt Ott contributed.

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  • UK energy company BP’s profits double to $27.7 billion

    UK energy company BP’s profits double to $27.7 billion

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    LONDON — British energy company BP reported record annual earnings on Tuesday amid growing calls for the U.K. government to boost taxes on companies profiting from the high price of oil and natural gas after Russia’s invasion of Ukraine.

    The London-based company said underlying replacement cost profit, which excludes one-time items and fluctuations in the value of inventories, jumped to $27.7 billion in 2022 from $12.8 billion a year earlier. Last year’s figure beat the $26.8 billion BP earned in 2008, when tensions in Iran and Nigeria pushed world oil prices close to more than $147 a barrel.

    BP also increased its quarterly dividend by 10% and announced plans to buy back $2.75 billion of stock from shareholders.

    But the good news for BP shareholders is likely to be tempered by the public fallout, particularly in its home country. High oil and gas prices have hit Britain hard, with double-digit inflation fueling a wave of public sector strikes, soaring food bank use and demands that politicians expand a windfall tax on energy companies to help pay for public services.

    Similar censure was directed at London-based Shell last week, when it said annual earnings doubled to a record $39.9 billion last year.

    Bumper profits for energy companies around the world have sparked demands that the fossil fuel industry do more to offset high energy bills even as they cut climate-damaging carbon emissions. U.S.-based Exxon Mobil posted record earnings of $55.7 billion last week.

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  • Asian shares extend losses after Wall Street decline

    Asian shares extend losses after Wall Street decline

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    BANGKOK — Shares slipped in Asia on Thursday after benchmarks fell more than 1% on Wall Street in the middle of a mostly quiet and holiday-shortened week.

    U.S. futures were mixed and oil prices declined.

    Investors are watching to see how China‘s relaxation of its stringent COVID-19 policies, and the outbreaks of infections that have followed, will affect business activity and travel.

    One concern is that the massive outbreaks could generate new, potentially vaccine resistant variants of the virus, “leading to knock-on virus surges across the globe, China’s reopening could still mark a positive step over the long run in light of past global attempts in bringing virus cases under control,” Yean Jun Rong of IG said in a commentary.

    The Hang Seng in Hong Kong shed 1.0% to 19,691.33, while the Shanghai Composite index was down 0.3% at 3,078.81.

    Tokyo’s Nikkei 225 index lost 0.9% to 26,093.67.

    The Kospi in Seoul sank 1.9% to 2,236.40 after the government reported South Korea’s industrial production fell 3.7% from a year earlier in November, worse than forecast and a bigger drop than the 1.2% decline in October. Retail sales were down 1.8% from the month before.

    Australia’s S&P/ASX 200 gave up 0.9% to 7,020.10. Bangkok’s SET index gained 0.3% and Mumbai’s Sensex was flat.

    The worst year since 2008 for the S&P 500 has been winding down with little in the way of data to drive trading. But later Thursday, the U.S. government was due to release jobless claims, a measure of employment that could provide insight into how the economy is faring as the Federal Reserve raises interest rates to quash inflation.

    The Fed has already raised its key interest rate seven times this year and is expected to continue raising rates in 2023. The key lending rate, the federal funds rate, stands at a range of 4.25% to 4.5%, and Fed policymakers forecast that the rate will reach a range of 5% to 5.25% by the end of 2023. Their forecast doesn’t call for a rate cut before 2024.

    On Wednesday, the S&P 500 fell 1.2%, with technology, energy and industrial stocks among the biggest weights on the benchmark index. It finished at 3,783.22.

    The Dow Jones Industrial Average dropped 1.1% to 32,875.71. The Nasdaq slid 1.4% to 10,213.29. The Russell 2000 gave up 1.6%, ending at 1,722.02.

    Bond yields were mixed. The yield on the 10-year Treasury, which influences mortgage rates, rose to 3.88% from 3.85% Tuesday. The yield on the two-year Treasury fell to 4.34% from 4.38% late Tuesday.

    With two more days of trading left in 2022, the S&P 500 is headed for a roughly 20% drop for the year, even as profits and margins for companies in the index have hit record heights this year. The Dow is on pace for a 9.5% drop, while the Nasdaq is doing much worse, on pace to plunge 34.7%.

    Southwest Airlines slid 5.2% as the carrier grappled with the fallout after cancelling thousands of flight cancellations. The airline’s CEO said it could be next week before the flight schedule returns to normal. Shares in other airlines also fell. Delta Air Lines dropped 2.8% and United Airlines fell 2.4%.

    Tesla rose 3.3% as it stabilized from steep losses it suffered after reports Tuesday that it temporarily suspended production at a factory in Shanghai.

    U.S. crude oil prices settled 0.7% lower and natural gas prices plunged 10.8%. That hurt energy stocks. Exxon Mobil fell 1.6%.

    Early Thursday, U.S. benchmark crude was down 54 cents at $78.42 per barrel in electronic trading on the New York Mercantile Exchange.

    Brent crude, the pricing basis for international trading, gave up 57 cents to $83.42 per barrel in London.

    The U.S. dollar fell to 133.77 Japanese yen from 134.39 yen late Wednesday. The euro rose to $1.0617 from $1.0613.

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  • Asian shares mixed after tech-led decline on Wall Street

    Asian shares mixed after tech-led decline on Wall Street

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    BANGKOK — Shares were mixed in Asia on Wednesday after a post-holiday retreat on Wall Street, as markets count down to the end of a painful year for investors.

    Shares fell in Tokyo, Shanghai and Seoul but rose in Hong Kong as the Chinese government took further steps to reopen to foreign travel after relaxing its stringent “zero-COVID” policies.

    Oil prices rose and U.S. futures inched higher.

    The Chinese government announced it will start issuing new passports in another major step away from anti-virus travel barriers. That sets up a potential flood of tourists out of China for next month’s Lunar New Year holiday, taking free-spending Chinese visitors to Asia, Europe and other destinations during what usually is the country’s busiest travel season.

    But governments in India and Japan have said they will impose extra precautions on those arriving from China due to widespread virus outbreaks there. U.S. officials also expressed concern and said they were considering taking similar steps.

    Hong Kong’s Hang Seng jumped 2% to 20,011.99. The Shanghai Composite index gave up early gains, losing 0.2% to 3,000.23.

    Tokyo’s Nikkei 225 lost 0.6% to 26,301.69 after the government reported that Japan’s industrial production fell for a third straight month in November and said it was likely to fall further in December. The Kospi in Seoul declined 2.2% to 2,282.26.

    In Australia, the S&P/ASX 200 dropped 0.3% to 7,086.50.

    On Wall Street, the S&P 500 fell 0.4% to 3,829.25 and the Dow Jones Industrial Average eked out a 0.1% gain, closing at 33,241.56. The Nasdaq dropped 1.4% to 10,353.23.

    The Russell 2000 index dropped 0.7% to 1,749.52.

    Technology and communication services companies accounted for a big share of the decliners in the S&P 500. Apple fell 1.4% and Netflix lost 3.7%.

    Airlines stocks fell broadly. A massive winter storm caused widespread delays and forced several carriers to cancel flights over the weekend. Delta Air Lines closed 0.8% lower, American Airlines dropped 1.4% and JetBlue slid 1.1%.

    Southwest Airlines slid 6% after the company had to cancel roughly two-thirds of its flights over the last couple of days, which it blamed on problems related to staffing and weather. The federal government said it would investigate why the company lagged so far behind other carriers.

    Tesla fell 11.4% for the biggest decline among S&P 500 stocks. The electric vehicle maker temporarily suspended production at a factory in Shanghai, according to published reports.

    Treasury yields mostly rose as the U.S. bond market reopened from Christmas holidays. The yield on the 10-year Treasury, which influences mortgage rates, rose to 3.85% from 3.75% late Friday.

    Trading on Wall Street is expected to be relatively light this holiday-shortened week as investors look ahead to 2023 after a dismal year for stocks.

    Uncertainty about how far the Federal Reserve and other central banks would go to fight the highest inflation in decades has kept investors on edge. The Fed raised its key interest rate seven times this year and has signaled more hikes to come in 2023, even though the pace of price increases has been easing.

    The high rates, which weigh heavily on prices for stocks and other investments, have fueled concerns that the economy could slow too much and slip into a recession next year.

    The benchmark S&P 500 index set an all-time high at the beginning of January, but is now down nearly 20% for the year. The tech-heavy Nasdaq is down nearly 34%.

    In other trading Wednesday, U.S. benchmark crude oil added 5 cents to $79.58 per barrel in electronic trading on the New York Mercantile Exchange. It lost 3 cents on Tuesday to $79.53 per barrel.

    Brent crude, the pricing basis for international trading, gained 14 cents to $84.82 per barrel.

    The U.S. dollar rose to 134.09 Japanese yen from 133.43 yen. The euro was trading at $1.0643, up from $1.0640.

    ———

    AP Business Writer Alex Veiga contributed.

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  • World shares mostly lower after tech-led fall on Wall Street

    World shares mostly lower after tech-led fall on Wall Street

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    BANGKOK — Shares were mostly lower in Europe and Asia on Wednesday as markets were counting down to the end of a painful year for investors, with no end in sight to uncertainties stemming from the pandemic and the war in Ukraine.

    Shares fell in Frankfurt, Paris, Tokyo, Shanghai and Seoul but rose in London and Hong Kong as the Chinese government took further steps to reopen to foreign travel after relaxing its stringent “zero-COVID” policies.

    Oil prices fell back and U.S. futures inched higher.

    Not all world markets have ended the year on low notes. Britain’s FTSE 100 is at about the level it started 2022. Early Wednesday it was up 0.7% at 7,525.42.

    But most other markets have suffered as interest rate increases, waves of coronavirus infections, the war, supply chain disruptions and surging inflation took a toll on businesses and investments.

    Germany’s DAX lost 0.3% to 13,952.83. It’s down about 13% from the start of the year. The CAC 40 in Paris, which is about 9% below where it began the year, edged 0.1% lower, to 6,541.50.

    The future for the S&P 500 was barely changed, down 1 point. The future for the Dow Jones Industrial Average edged 0.1% higher.

    On Tuesday, the S&P 500 fell 0.4% and the Dow industrials eked out a 0.1% gain. The Nasdaq dropped 1.4%, while the Russell 2000 index dropped 0.7%.

    The benchmark S&P 500 index set an all-time high at the beginning of January, but is now down nearly 20% for the year. The tech-heavy Nasdaq is down nearly 34%.

    The Chinese government announced late Tuesday that it will start issuing new passports, a major step away from anti-virus travel barriers that likely will bring a flood of tourists out of China for next month’s Lunar New Year holiday.

    The return of free-spending Chinese visitors to Asia, Europe and other destinations during what usually is the country’s busiest travel season will be a welcome relief for countries like Thailand that depend heavily on tourism.

    But some governments have said they will impose extra precautions on people arriving from China given the widespread virus outbreaks there. U.S. officials, speaking on condition of anonymity to convey internal discussions, also expressed concern and said they were considering taking similar steps.

    With China in the midst of its most severe COVID wave so far, disruptions to manufacturing and transport will likely linger until the worst is past.

    “Investors are enthusiastic about China re-opening its economy. However, there are plenty of reports which suggest that COVID cases are on the rise in China, which really threatens the supply chain,” Naeem Aslam of Avatrade.com said in a commentary.

    In Asian trading, Hong Kong’s Hang Seng climbed 1.6% to 19,898.91 while the Shanghai Composite index dropped 0.3% to 3,087.40. Hong Kong’s benchmark is down 14% for the year, while Shanghai’s has lost slightly more so far, at 14.2%.

    Tokyo’s Nikkei 225, which has given up 8.6% this year, fell 0.4% to 26,340.50 after the government reported that Japan’s industrial production fell for a third straight month in November and was likely to fall further in December.

    The Kospi in Seoul declined 2.2% to 2,280.45, while Australia’s S&P/ASX 200 dropped 0.3% to 7,086.40. Bangkok’s SET gained 0.3%.

    Trading on Wall Street is expected to be relatively light this holiday-shortened week as investors look ahead to 2023 after a dismal year for stocks.

    Uncertainty about how far the Federal Reserve and other central banks would go to fight the highest inflation in decades has kept investors on edge, even as price increases have eased. The Fed raised its key interest rate seven times this year and has signaled more hikes to come in 2023.

    The high rates weigh heavily on prices for stocks and other investments and have raised worries they might slow the economy too much, tipping it into a recession.

    In other trading, U.S. benchmark crude oil shed 54 cents to $78.99 per barrel in electronic trading on the New York Mercantile Exchange. It lost 3 cents on Tuesday to $79.53 per barrel.

    Brent crude, the pricing basis for international trading, declined 39 cents to $84.29 per barrel.

    The U.S. dollar rose to 134.01 Japanese yen from 133.43 yen. The euro was unchanged at $1.0641.

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  • Asian shares higher in thin holiday trading

    Asian shares higher in thin holiday trading

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    BANGKOK — Shares rose Monday in Asia in thin post-Christmas holiday trading, with markets in Hong Kong, Sydney and several other places closed.

    Tokyo’s Nikkei 225 index gained 0.6% to 26,393.32 and the Kospi in Seoul added 0.2% to 2,318.54. The Shanghai Composite index rose 0.5% to 3,061.93 and the SET in Bangkok added 0.6%.

    Bank of Japan Gov. Haruhiko Kuroda indicated in a widely watched speech Monday that the central bank does not intend to alter its longstanding policy of monetary easing to cope with pressures from inflation on the world’s third-largest economy.

    Last week, markets were jolted by a slight adjustment in the target range for the yield of long-term Japanese government bonds, viewing it as a sign the Bank of Japan might finally unwind its massive support for the economy through ultra-low interest rates and purchases of bonds and other assets.

    A widening gap between interest rates in Japan and other countries has pulled the Japanese yen sharply lower against the U.S. dollar and other currencies and accentuated the impact of higher costs for many imported products and commodities.

    But the BOJ has kept its key lending rate at minus 0.1%, cautious over risks of recession.

    Kuroda told the Keidanren, the country’s most powerful business group, that with economies facing likely downward pressure, and with Japan’s economy not fully recovered from the impacts of the pandemic, the BOJ “deems it necessary to conduct monetary easing and thereby firmly support the economy. …”

    On Friday, the S&P 500 reversed a 0.7% loss to close 0.6% higher, at 3,844.82. With one week left of trading in 2022, the benchmark index is down 19.3% for the year.

    The Dow Jones Industrial Average rose 0.5% to 33,203.93, while the tech-heavy Nasdaq edged 0.2% higher, to 10,497.86.

    Small company stocks also rose. The Russell 2000 index picked up 0.4% to 1,760.93.

    Mixed economic news weighed on stocks early on, but the indexes rebounded by late afternoon amid relatively light trading ahead of the long holiday weekend. U.S. and European markets will be closed Monday.

    Markets are in a tricky situation where relatively solid consumer spending and a strong employment market reduce the risk of a recession but also raise the threat of higher interest rates from the Federal Reserve as it presses its campaign to crush inflation.

    The government reported Friday that a key measure of inflation is continuing to slow, though the inflation gauge in the consumer spending report was still far higher than anyone wants to see. Also, growth in consumer spending weakened last month by more than expected, but incomes were a bit stronger than expected.

    Last week’s reports were the last big U.S. economic updates of the year. Investors will soon turn their focus to the next round of corporate earnings.

    The Fed has said it will keep raising interest rates to tame inflation, even though the pace of price increases has continued to ease. The Fed’s key overnight rate is at its highest level in 15 years, after beginning the year at a record low of roughly zero. The key lending rate, the federal funds rate, stands at a range of 4.25% to 4.5%, and Fed policymakers have forecast that the rate will reach a range of 5% to 5.25% by the end of 2023.

    Given the persistence of high inflation, “many are starting to believe the main story is that there will be no scope for Fed cuts in the year ahead and that central banks will maintain these relatively high rates until underlying inflation is truly cracked — and that process will take time,” Stephen Innes of SPI Asset Management said in a commentary.

    The Fed’s forecast doesn’t call for a rate cut before 2024, and the higher rates have raised concerns the economy could stall and slip into a recession in 2023. High rates have also been weighing heavily on prices for stocks and other investments.

    In currency dealings, the U.S. dollar slipped to 132.62 Japanese yen from 132.82 yen late Friday. The euro rose to $1.0629 from $1.0614.

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  • World shares mostly higher after slight gains on Wall St

    World shares mostly higher after slight gains on Wall St

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    BANGKOK — European shares were higher Wednesday after a mixed session in Asia in the absence of major data releases.

    Germany’s DAX rose 0.7% to 13,987.59 while the CAC 40 in Paris jumped 1% to 6,514.30. Britain’s FTSE 100 gained 0.5% to 7,407.92.

    The future for the S&P 500 advanced 0.7% while that for the Dow Jones Industrial Average surged 0.8%.

    Tokyo’s benchmark Nikkei 225 index slipped 0.7%, to 26,387.72, a day after the Bank of Japan gave in to pressure on the yen by expanding the cap on the yield of the 10-year Japanese government bond to 0.50%. It had been 0.25%.

    On Tuesday, the Nikkei 225 lost 2.5%.

    The Japanese central bank has kept its key lending rate at minus 0.1% for years, trying to spur growth by keeping credit ultra cheap. The slight softening of its stance against raising interest rates to cut inflation rattled world markets Tuesday, with bond yields pushing higher.

    Higher yields make borrowing more expensive, slowing the economy. That can alleviate upward pressure on prices, but it also pulls prices for stocks and other investments lower.

    The widening gap between the BOJ’s benchmark rate and rising interest rates in the U.S. and other economies has weakened the yen against the U.S. dollar and other currencies, causing prices for imported oil, consumer goods and industrial inputs to surge and adding to pressures on its economy.

    “Ultimately, the BOJ is reacting to a dysfunctioning bond market and a weakening yen. But the move also represents the fall of one of the last central bank hold-outs of ultra-low rate policy,” Stephen Innes of SPI Asset Management said in a commentary.

    Central banks around the world have been raising rates at an explosive clip and a growing number of economists and investors see a recession hitting in 2023. Both the Federal Reserve and European Central Bank have pledged to keep raising rates into next year to be sure they get inflation under control.

    At the same time, fresh waves of COVID-19 infections in China, Japan and other countries are casting a shadow over pandemic recoveries.

    In other Asian trading, Hong Kong’s Hang Seng gained 0.3% to 19,160.49 and the Shanghai Composite index slipped 0.2% to 3,068.41.

    South Korea’s Kospi lost 0.2% to 2,328.95. In Sydney, the S&P/ASX 200 gained 1.3% to 7,115.10. Shares rose in Bangkok and Taiwan but fell in Mumbai.

    On Tuesday, the S&P 500 rose 0.1% while the Dow industrials climbed 0.3%. The Nasdaq composite barely budged, closing less than 0.1% higher. Small company stocks outdid the broader market, lifting the Russell 2000 index 0.5%.

    The yield on the 10-year Treasury rose to 3.70% from 3.59% late Monday. That yield helps set rates for mortgages and other economy-setting loans, which has already meant particular pain for the U.S. housing market.

    The two-year U.S. Treasury yield, which tends to more closely track expectations for action from the Federal Reserve, was more reserved. It held steady at 4.26%.

    In the foreign exchange market, the dollar rose to 131.70 Japanese yen from 131.62 yen. Tokyo’s surprise move on Tuesday had pulled the dollar 4% lower against the yen.

    The euro fell to $1.0615 from $1.0626.

    U.S. benchmark crude oil gained 77 cents to $77.00 per barrel in electronic trading on the New York Mercantile Exchange. It gained 1.2% on Tuesday.

    Brent crude, the pricing basis for international trading, picked up 85 cents to $80.84 per barrel.

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  • Asian markets extend Wall St losses; China COVID cases rise

    Asian markets extend Wall St losses; China COVID cases rise

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    BANGKOK — Shares slipped in Asia on Monday after last week’s decline on Wall Street, while signs of a surge in coronavirus infections in China suggested progress may be bumpy as it rolls back its “zero-COVID” pandemic restrictions.

    Attention was turning to an update on U.S. consumer prices and the Federal Reserve’s last meeting of the year.

    The last big piece of data on inflation before the Fed’s next decision is due Tuesday, when economists expect the consumer price index to show inflation slowed to 7.3% last month from 7.7% in October.

    Meetings of major central banks including the Fed mean “there is potential for a whole load of volatility in markets; especially given the palpable tensions between inflation risks and fears of policy-induced recession,” analysts at Mizuho Bank said in a commentary.

    A survey of Japanese manufacturers showed a sharp deterioration in the outlook, with recession a growing possibility in the U.S. and other major markets. The business survey index fell to minus 3.6% in October-December from 1.7% in the previous quarter as manufacturers grappled with high prices for energy and other raw materials.

    Hong Kong’s Hang Seng sank 2.1% to 19,484.88 and the Shanghai Composite index shed 0.7% to 3,186.05.

    Tokyo’s Nikkei 225 index gave up 0.2% to 27,835.63 while the Kospi in Seoul lost 0.6% to 2,375.27.

    Australia’s S&P/ASX 200 declined 0.4% to 7,181.40.

    China was setting up more intensive care facilities and trying to strengthen hospitals as it rolls back anti-virus controls that confined millions of people to their homes, crushed economic growth and set off protests.

    The precautions come as the number of cases appeared to be rising, though a sharp reduction in the number of tests makes measuring any changes uncertain.

    President Xi Jinping’s government is officially committed to stopping virus transmission, the last major country to try. But the latest moves suggest the ruling Communist Party will tolerate more cases without quarantines or shutting down travel or businesses as it winds down its “zero-COVID” strategy.

    A choppy day of trading on Wall Street ended with stocks broadly lower Friday.

    The S&P 500 and Nasdaq composite each fell 0.7%, while the Dow Jones Industrial Average dropped 0.9%. Smaller company stocks fell even more, pulling the Russell 2000 index 1.2% lower. The indexes marked their first losing week in the last three.

    The S&P 500 finished 3.4% lower for the week and is now down 17.5% this year.

    The U.S. government reported that prices paid at the wholesale level were 7.4% higher in November than a year earlier. That’s a slowdown from October’s wholesale inflation rate of 8.1%, but it was still slightly worse than economists expected.

    The Fed has been battling inflation by aggressively raising interest rates to raise the cost of borrowing and slow economic activity. The central bank has already hiked its key overnight rate to a range of 3.75% to 4%, up from basically zero as recently as March.

    It generally is expected to raise rates by another half percentage point on Wednesday as it wraps up a two-day meeting.

    Stocks have recovered some of their losses recently, as inflation has slowed since hitting a peak in the summer. But it remains too high, raising the risk the Federal Reserve will have to keep hiking interest rates sharply to get it fully under control.

    In other trading Monday, U.S. benchmark crude oil gained 54 cents to $71.56 per barrel in electronic trading on the New York Mercantile Exchange. It lost 44 cents to $71.02 on Friday.

    Brent crude, the pricing basis for international trading, added 40 cents to $76.50 per barrel.

    The U.S. dollar rose to 137.03 Japanese yen from 136.60 yen. The euro slipped to $1.0516 from $1.0537.

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  • Asian markets extend Wall St losses; China COVID cases rise

    Asian markets extend Wall St losses; China COVID cases rise

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    BANGKOK — Shares slipped in Asia on Monday after last week’s decline on Wall Street, while signs of a surge in coronavirus infections in China suggested progress may be bumpy as it rolls back its “zero-COVID” pandemic restrictions.

    Attention was turning to an update on U.S. consumer prices and the Federal Reserve’s last meeting of the year.

    The last big piece of data on inflation before the Fed’s next decision is due Tuesday, when economists expect the consumer price index to show inflation slowed to 7.3% last month from 7.7% in October.

    Meetings of major central banks including the Fed mean “there is potential for a whole load of volatility in markets; especially given the palpable tensions between inflation risks and fears of policy-induced recession,” analysts at Mizuho Bank said in a commentary.

    A survey of Japanese manufacturers showed a sharp deterioration in the outlook, with recession a growing possibility in the U.S. and other major markets. The business survey index fell to minus 3.6% in October-December from 1.7% in the previous quarter as manufacturers grappled with high prices for energy and other raw materials.

    Hong Kong’s Hang Seng sank 2.1% to 19,484.88 and the Shanghai Composite index shed 0.7% to 3,186.05.

    Tokyo’s Nikkei 225 index gave up 0.2% to 27,835.63 while the Kospi in Seoul lost 0.6% to 2,375.27.

    Australia’s S&P/ASX 200 declined 0.4% to 7,181.40.

    China was setting up more intensive care facilities and trying to strengthen hospitals as it rolls back anti-virus controls that confined millions of people to their homes, crushed economic growth and set off protests.

    The precautions come as the number of cases appeared to be rising, though a sharp reduction in the number of tests makes measuring any changes uncertain.

    President Xi Jinping’s government is officially committed to stopping virus transmission, the last major country to try. But the latest moves suggest the ruling Communist Party will tolerate more cases without quarantines or shutting down travel or businesses as it winds down its “zero-COVID” strategy.

    A choppy day of trading on Wall Street ended with stocks broadly lower Friday.

    The S&P 500 and Nasdaq composite each fell 0.7%, while the Dow Jones Industrial Average dropped 0.9%. Smaller company stocks fell even more, pulling the Russell 2000 index 1.2% lower. The indexes marked their first losing week in the last three.

    The S&P 500 finished 3.4% lower for the week and is now down 17.5% this year.

    The U.S. government reported that prices paid at the wholesale level were 7.4% higher in November than a year earlier. That’s a slowdown from October’s wholesale inflation rate of 8.1%, but it was still slightly worse than economists expected.

    The Fed has been battling inflation by aggressively raising interest rates to raise the cost of borrowing and slow economic activity. The central bank has already hiked its key overnight rate to a range of 3.75% to 4%, up from basically zero as recently as March.

    It generally is expected to raise rates by another half percentage point on Wednesday as it wraps up a two-day meeting.

    Stocks have recovered some of their losses recently, as inflation has slowed since hitting a peak in the summer. But it remains too high, raising the risk the Federal Reserve will have to keep hiking interest rates sharply to get it fully under control.

    In other trading Monday, U.S. benchmark crude oil gained 54 cents to $71.56 per barrel in electronic trading on the New York Mercantile Exchange. It lost 44 cents to $71.02 on Friday.

    Brent crude, the pricing basis for international trading, added 40 cents to $76.50 per barrel.

    The U.S. dollar rose to 137.03 Japanese yen from 136.60 yen. The euro slipped to $1.0516 from $1.0537.

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  • Wall Street falls as US inflation slows but remains hot

    Wall Street falls as US inflation slows but remains hot

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    NEW YORK — A choppy day of trading on Wall Street ended with stocks broadly lower Friday, after a new report showed that inflation is slowing less than hoped just days before Federal Reserve officials are expected to raise interest rates again.

    The S&P 500 and Nasdaq composite each fell 0.7%, while the Dow Jones Industrial Average dropped 0.9%. Smaller company stocks fell even more, pulling the Russell 2000 index 1.2% lower. The indexes marked their first losing week in the last three.

    The U.S. government reported that prices paid at the wholesale level were 7.4% higher in November than a year earlier. That’s a slowdown from October’s wholesale inflation rate of 8.1%, but it was still slightly worse than economists expected.

    “There’s a sense that inflation has plateaued, but that said it’s still sticky and the Fed is most likely going to have to push harder,” said Quincy Krosby, chief equity strategist for LPL Financial.

    The nation’s high inflation, along with the Federal Reserve’s economy-crunching response to it, have been the main reasons for Wall Street’s painful tumble this year. Stocks have recovered some of their losses recently, as inflation has slowed since hitting a peak in the summer. But it remains too high, raising the risk the Federal Reserve will have to keep hiking interest rates sharply to get it fully under control.

    Treasury yields climbed as traders stepped up bets for how high the Fed will ultimately take interest rates. The central bank has already hiked its key overnight rate to a range of 3.75% to 4%, up from basically zero as recently as March.

    Its next decision on rates is scheduled for next week, and the general expectation is for it to raise rates by another half of a percentage point.

    Friday’s economic data did not sway Wall Street’s expectations on that, not after several Fed officials hinted recently they may step down from their string of four straight hikes of 0.75 percentage points. Such a dial down would mean less added pressure on markets and the economy. Even so, the Fed has said it may still take rates higher than markets expect before taking a pause.

    Higher rates hurt the economy by making it more expensive for companies and households to borrow money, which forces them to cut back on spending. If rates go too high, it can cause a recession. They also drag down on prices for stocks and all kinds of other investments.

    A separate report on Friday showed U.S. households are paring expectations a bit for inflation in the future. That’s key for the Fed, which wants to prevent a vicious cycle where households rush to make purchases on fears prices will rise further. Such buying activity only fans inflation higher.

    Households are forecasting inflation of 4.6% in the year ahead, according to the survey by the University of Michigan. That’s the lowest such reading in 15 months, though still well above where it was two years ago. Expectations for longer-run inflation remain stuck in the 2.9% to 3.1% range where they’ve been for 16 of the last 17 months, at 3%.

    Overall sentiment among consumers was also stronger than economists expected, according to the University of Michigan’s preliminary reading. That’s good news for the economy, which gets most of its strength from spending by such consumers. But it can also complicate the Fed’s task. If such spending remains resilient, it could keep up the pressure on inflation.

    The last big piece of data on inflation before the Fed’s next decision arrives on Tuesday, when economists expect the consumer price index to show that inflation slowed to 7.3% last month from 7.7% in October.

    “The two most important questions for next year are how fast inflation will drop and how much will it need to drop for the Fed to stop tightening,” foreign-exchange strategists wrote in a BofA Global Research report. “We are concerned markets too optimistic on both.”

    Roughly 75% of the stocks in the S&P 500 closed lower Friday, with health care, technology and energy among the sectors that weighed down the market most. The benchmark index fell 29.13 points to 3,934.38. It finished 3.4% lower for the week and is now down 17.5% this year.

    The Dow fell 305.02 points to 33,476.46, while the Nasdaq slid 77.39 points to 11,004.62. The Russell 2000 dropped 21.63 points to 1,796.66.

    The yield on the two-year Treasury, which tends to track expectations for Fed action, rose to 4.36% from 4.26% just before Friday’s inflation report was released. It was at 4.31% late Thursday.

    The yield on the 10-year Treasury, which helps dictate rates for mortgages and other loans, rose to 3.58% from 3.49% late Thursday.

    In overseas stock markets, European indexes closed higher after recovering from a pullback following the U.S. inflation report.

    Chinese benchmarks rose Friday on reports the government is planning new measures to support the ailing property sector, which has been a severe drag on growth over the past several years.

    The relaxation of some of China’s “zero-COVID” rules is also raising hopes the economy will gain momentum, though experts say it will take months for tourism and other business to recover from the disruptions of the pandemic. It historically has been a major source of the global economy’s growth.

    ———

    AP Business Writers Elaine Kurtenbach and Matt Ott contributed.

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  • DocuSign, Chewy rise; Lululemon, AmerisourceBergen fall

    DocuSign, Chewy rise; Lululemon, AmerisourceBergen fall

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    Stocks that traded heavily or had substantial price changes Friday: DocuSign, Chewy rise; Lululemon, AmerisourceBergen fall

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

    Chewy Inc., up $1.68 to $43.65.

    The online pet store surprised investors by turning a profit in the third quarter.

    Broadcom Inc., up $13.64 to $544.72.

    The semiconductor maker reported results that beat analysts’ estimates and issued a better-than-expected forecast.

    DocuSign Inc., up $5.41 to $49.16.

    The cloud-based provider of electronic signature services raised its forecasts for full-year results.

    Lululemon Athletica Inc., down $48.12 to $326.39.

    The maker of athletic apparel issued an earnings forecast for the current quarter that wasn’t as strong as anlaysts were expecting.

    Vail Resorts Inc., up $7.43 to $258.64.

    The ski resort operator reported sales that were above what Wall Street was expecting.

    RH, up $8.10 to $274.48.

    The parent company of Restoration Hardware reported results that easily beat analysts’ forecasts and raised its full-year outlook.

    AmerisourceBergen Corp., down $5.13 to $165.33.

    The drug wholesaler will buy back about $200 million of its stock from Walgreens Boots Alliance.

    Bath & Body Works Inc., up 16 cents to $42.31.

    Investment company Third Point disclosed a 6% stake in the retailer.

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  • Asian shares slip after tech stock slump on Wall St

    Asian shares slip after tech stock slump on Wall St

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    BANGKOK — Shares were mostly lower in Asia on Thursday after Wall Street sagged under weakness in tech stocks.

    U.S. futures turned higher and oil prices rebounded more than $1 a barrel.

    Japan revised upward its GDP data to show the economy contracted less than earlier reported in July-September, in a sign the country weathered its latest big COVID wave with less damage than had been thought.

    The Cabinet Office reported Thursday that the economy shrank at a 0.8% annual rate in July-September. That was better than minus 1.2% annual growth reported earlier.

    In quarterly terms, the world’s third-largest economy contracted 0.2% instead of 0.3%.

    Shares rose in Hong Kong as investors assessed the potential impact of a rollback of many pandemic restrictions on the Chinese mainland.

    On Wednesday, rules on isolating people with COVID-19 were eased and virus test requirements were dropped for some public places in a dramatic change to a strategy that had confined millions of people to their homes and sparked protests and demands for President Xi Jinping to resign.

    Experts warned, however, that the “zero-COVID” restrictions can’t be lifted completely until at least mid-2023 because millions of elderly people still must be vaccinated and the health care system strengthened.

    “Specifically, there are three reasons to be restrained, if not circumspect, on China cheer. First, the simple point that the unwind of entrenched zero-COVID policies will take time and perhaps be a bumpy process rather than a linear path to instant gratification,” Mizuho Bank said in a commentary.

    Hong Kong’s Hang Seng gained 3.5% to 19,475.45, while the Shanghai Composite lost 0.1% to 3,197.35.

    Australia’s S&P/ASX 200 sank 0.8% to 7,175.50 and South Korea’s Kospi dropped 0.5% to 2,371.08. Shares also fell in Bangkok, Mumbai and Taiwan.

    Wall Street ended a wobbly day of trading with more losses Wednesday, with the S&P 500 down 0.2% in its fifth straight loss. It closed at 3,933.92.

    Technology and communication services stocks were the biggest weights on the benchmark index. Apple fell 1.4% and Google parent Alphabet dropped 2.1%.

    The Nasdaq composite, which is heavily weighted with tech stocks, fell 0.5% to 10,958.55 and the Dow Jones Industrial Average managed a 1.58 point gain, essentially flat, at 33,597.92.

    The Russell 2000 index fell 0.3% to 1,806.90.

    Treasury yields fell significantly. The yield on the 10-year Treasury, which influences mortgage rates, slid to 3.42% from 3.53% late Tuesday. The two-year Treasury yield, which tends to track market expectations of future action by the Federal Reserve, fell to 4.27% from 4.36%.

    Investors have been dealing with a relative lack of news ahead of updates on inflation and consumer sentiment later this week, and the Federal Reserve’s meeting next week. Inflation, the Fed’s aggressive interest rate increases and recession worries remain the big concerns for Wall Street.

    Investors are watching for data that may yield more insights into inflation’s path ahead and how the Fed will continue fighting high prices.

    The U.S. will release data on weekly unemployment claims on Thursday. The jobs market has been a strong area of the otherwise slowing economy and that has made it more difficult for the Fed to tame inflation.

    The government will release a report on wholesale prices Friday that will provide more details on how inflation is affecting businesses. The University of Michigan will release a December survey on consumer sentiment on Friday.

    Inflation has been easing and economists expect the upcoming data on wholesale and consumer prices to reflect that trend.

    The central bank is expected to raise interest rates by a half-percentage point at its meeting next week. It has raised its benchmark rate six times since March, driving it to a range of 3.75% to 4%, the highest in 15 years. Wall Street expects the benchmark rate to reach a peak range of 5% to 5.25% by the middle of 2023.

    A growing number of analysts expect the U.S. economy to slip into a recession in 2023, but are unsure of its potential severity and duration.

    In other trading, U.S. crude oil prices rose $1.18 to $73.19 per barrel in electronic trading on the New York Mercantile Exchange. On Wednesday, it fell 3%, settling at $72.01 per gallon, the lowest price this year.

    Brent crude oil gained $1.12 to $78.29 per barrel.

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