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  • Stocks Advance in Countdown to US Inflation Report: Markets Wrap

    Stocks Advance in Countdown to US Inflation Report: Markets Wrap

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    (Bloomberg) — Global stocks rose as investors awaited US inflation data that will help clarify the path for Federal Reserve policy.

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    Europe’s Stoxx 600 index advanced 0.5%, while US equity futures showed the S&P 500 and Nasdaq 100 indexes were set to add to Wednesday’s gains. A gauge of Asian stocks rallied as Japanese equities hit a fresh three-decade high. Treasuries rose, while the dollar weakened against most of its Group-of-10 peers.

    The US inflation report is top of mind for traders Thursday. More evidence of cooling price pressures will support optimism around expectations for Fed interest-rate cuts, but a hot reading could spur volatility. Economists tracked by Bloomberg expect year-over-year core inflation to fall to 3.8% in the December data from 4% in the prior month.

    “Confirmation that prices are easing will boost confidence that a May cut can be expected, and that could prompt some rally in stocks and bonds,” said Stuart Cole, chief macro economist at Equiti Capital in London. “But you need to be cognizant of the underlying CPI component. If services prices are still going in the wrong direction, then this could potentially stall any rally.”

    Cryptocurrency stocks extended gains in US premarket trading after the Securities and Exchange Commission for the first time approved exchange-traded funds that invest directly in Bitcoin. The largest cryptocurrency briefly scaled $47,000 in a muted climb after the green light. The largest digital currency had already jumped over 160% in the past 12 months in anticipation of the ETFs as well as looser monetary policy.

    In other individual stock moves, Tesco Plc climbed after Britain’s biggest retailer raised its profit guidance. Marks & Spencer Group Plc dropped after reporting strong Christmas sales, but disappointing performances in its international business and the joint venture with Ocado Group Plc.

    In Asia, benchmark Japanese indexes notched fresh three-decade highs, thanks in part to the yen’s recent weakness. Strategists also said a newly introduced tax-free retirement savings program may help attract more domestic inflows to the market.

    “The recent rally shows that overall, both domestic individual investors and foreign investors have been forced to change their attitude toward Japanese stocks to a more positive one,” said Ikuo Mitsui, fund manager at Aizawa Securities Co. “There is also a sense that investors who were late to the market are buying to follow the rise in the index.”

    Investors are gearing up for a bout of turbulence in Treasuries when the US consumer price data are published later. Bond traders have trimmed bets on gains for Treasuries this month, and the swaps market shows a lower chance of expected Fed cuts by March relative to pricing late last year.

    Fed Bank of New York President John Williams said Fed officials need to see more signs of cooling in the economy before reducing rates, but noted current policy levels are adequate to bring inflation back to the central bank’s target. The tone of comments differed from those he made on Dec. 15, when he said the near-term question was whether policy was “sufficiently restrictive” to ensure inflation comes back to 2%. At the time, he also added that officials “aren’t really talking about rate cuts.”

    JPMorgan Asset Management, however, says the Fed may end up cutting interest rates more than it’s currently signaling as the US economy slows, driving a rally in shorter-maturity Treasuries.

    Oil added to gains as tensions in the Middle East persisted, while gold also advanced.

    Key events this week:

    • US CPI, initial jobless claims, Thursday

    • China CPI, PPI, trade, Friday

    • UK industrial production, Friday

    • US PPI, Friday

    • Some of the biggest US banks report fourth-quarter results, Friday

    • Minneapolis Fed President Neel Kashkari speaks, Friday

    • ECB chief economist Philip Lane speaks, Friday

    Some of the main moves in markets:

    Stocks

    • The Stoxx Europe 600 rose 0.5% as of 9:22 a.m. London time

    • S&P 500 futures rose 0.2%

    • Nasdaq 100 futures rose 0.4%

    • Futures on the Dow Jones Industrial Average rose 0.2%

    • The MSCI Asia Pacific Index rose 1.1%

    • The MSCI Emerging Markets Index rose 0.6%

    Currencies

    • The Bloomberg Dollar Spot Index was little changed

    • The euro was little changed at $1.0967

    • The Japanese yen rose 0.1% to 145.56 per dollar

    • The offshore yuan rose 0.2% to 7.1720 per dollar

    • The British pound was little changed at $1.2751

    Cryptocurrencies

    • Bitcoin rose 0.8% to $46,312.06

    • Ether rose 3.3% to $2,611.6

    Bonds

    • The yield on 10-year Treasuries declined four basis points to 3.99%

    • Germany’s 10-year yield was little changed at 2.22%

    • Britain’s 10-year yield declined two basis points to 3.80%

    Commodities

    • Brent crude rose 1.3% to $77.78 a barrel

    • Spot gold rose 0.3% to $2,031.46 an ounce

    This story was produced with the assistance of Bloomberg Automation.

    –With assistance from Richard Henderson and Chiranjivi Chakraborty.

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    ©2024 Bloomberg L.P.

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  • Stock market today: Most of Wall Street climbs, while Boeing and crude oil prices tumble

    Stock market today: Most of Wall Street climbs, while Boeing and crude oil prices tumble

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    NEW YORK — Much of Wall Street is rising Monday, ahead of a week heavy with potentially market-moving reports toward the end of it.

    The S&P 500 was 0.5% higher in morning trading, coming off its first losing week in the last 10. The Nasdaq composite was up 1.1%, as of 10:45 a.m. Eastern time, while the Dow Jones Industrial Average was lagging the market with a loss of 57 points, or 0.2%.

    Boeing was dragging the Dow lower in its first trading after one of its jets suffered an inflight blowout over Oregon. It fell 7.1%. Spirit Aerosystems, which builds fuselages and other parts for Boeing, lost 9.2%.

    Stocks of oil-and-gas companies were also heavy weights after Saudi Arabia gave indications of potentially weak demand for crude. Exxon Mobil fell 2.9%, and Halliburton lost 4.5% as oil prices tumbled roughly 4%. .

    But much of the rest of Wall Street was holding up better as easing Treasury yields relaxed the pressure on the stock market.

    Big Tech stocks, which get some of the strongest boosts from lower yields, helped lead the way. A 4.7% gain for Nvidia and 1.3% rise for Apple were two of the strongest forces pushing the S&P 500 upward.

    Commercial Metals Co. also jumped 7.3% after reporting stronger profit for the latest quarter than analysts expected. It said construction activity is healthy in North America, driving demand for steel and helping to offset weaker conditions in Europe.

    More earnings results will be arriving at the end of the week, with Delta Air Lines, JPMorgan Chase and UnitedHealth Group on Friday among those kicking off the S&P 500’s reporting season for the final three months of 2023.

    The highlight of the week may be Thursday’s release of the latest inflation data for U.S. consumers. A cooldown there has ignited hope on Wall Street that the Federal Reserve will soon see enough improvement to not only halt its hikes to interest rates but begin cutting them.

    The Fed has already hiked its main interest rate to the highest level since 2001, which grinds down on the economy and hurts prices for investments, in hopes of conquering high inflation. The Fed said last month it’s seen improvement, and Wall Street’s expectation is for it start cutting rates as soon as March.

    Treasury yields have already sunk in the bond market on such expectations, and they edged lower Monday. The yield on the 10-year Treasury sank to 3.99% from 4.05% late Friday. It was above 5% during October, at its highest point since 2007 and putting sharp downward pressure on the stock market.

    The resulting rally for stocks carried the S&P 500 near its all-time high. But that strength also caused some on Wall Street to say at least a pause for stocks is likely in the near term. The market looks “extremely expensive,” according to Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management.

    Critics also warn that traders on Wall Street may be too optimistic about how deeply the Federal Reserve may cut rates this year. The Fed has indicated three cuts may arrive in 2024, but many traders are anticipating roughly double that. Such a high number may not be likely unless a recession arrives to force the Fed’s hand, critics say.

    That’s why much focus is on corporate profits, where growth could help prop up stock prices.

    Analysts expect companies in the S&P 500 to report growth of 1.3% in earnings per share for the fourth quarter of 2023 from a year earlier, according to FactSet. While that’s a relatively meager number, it would mark just a second straight quarter of growth.

    The economy has so far remained resilient despite worries coming into last year about a looming recession. That has helped protect revenue for companies. But their costs have also climbed with inflation still high across the economy, squeezing their profits.

    Helen of Troy, the company behind such brands as Hydro Flask, Osprey and Drybar, rose 4% after reporting stronger profit for its latest fiscal quarter than analysts expected. Incoming CEO Noel Geoffroy said the company did better than it had expected despite “what continues to be a challenging macro consumer environment.”

    Elsewhere on Wall Street, the fallout from the weekend’s blowout of a Boeing jet flown by Alaska Airlines spread. Alaska Air Group sank 2.1%. United Airlines, which flies the same Boeing model and also had to cancel flights due to its grounding, opened lower and swung a few times before rising 1.7%.

    In stock markets abroad, indexes were mixed. Hong Kong’s Hang Seng sank 1.9%, led by losses for property and technology shares, while stocks fell 1.4% in Shanghai.

    Property shares tumbled after Zhongzhi Enterprise Group, a major lender to real estate developers, filed for bankruptcy in Beijing. China also announced sanctions Sunday against five American defense-related companies in response to U.S. arms sales to Taiwan and U.S sanctions on Chinese companies and individuals.

    ___

    AP Writers Zimo Zhong and Matt Ott contributed.

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  • Stock market today: Wall Street slumps as its weak start to 2024 carries into another day

    Stock market today: Wall Street slumps as its weak start to 2024 carries into another day

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    NEW YORK — Stocks fell again Wednesday as Wall Street’s slow start to the year stretched into a second day.

    The S&P 500 lost 38.02, or 0.8%, to 4,704.81, though it remains within 2% of its record set exactly two years ago. The Dow Jones Industrial Average dropped 284.85 points, or 0.8%, from its own record to 37,430.19. The Nasdaq composite led the market lower with a drop of 173.73, or 1.2%, to 14,592.21.

    Some of last year’s biggest winners again gave back some of their gains to weigh on the market. Tesla fell 4% after more than doubling last year, for example. It and the other six “Magnificent 7” Big Tech stocks responsible for the majority of Wall Street’s returns last year have regressed some following their tremendous runs.

    The question hanging over the market is whether all the enthusiasm that sent stocks broadly rallying for nine straight weeks into the start of this year was warranted. It was built on expectations that inflation has cooled enough for the Federal Reserve to not only halt its hikes to interest rates but to cut them several times this year. Hopes are also high the economy can escape a recession, even after the Fed hiked its main interest rate to the highest level since 2001.

    A couple of reports released Wednesday morning indicated the overall economy may indeed be slowing from its strong growth last summer, which the Federal Reserve hopes will keep a lid on inflation. A big danger is if it slows too much and begins shrinking.

    One report showed U.S. employers were advertising nearly 8.8 million job openings at the end of November, down slightly from the month before and the lowest number since early 2021. The report also showed slightly fewer workers quit their jobs during November.

    The Fed is looking for exactly such a cooldown, which it hopes will limit upward pressure on inflation without necessitating widespread layoffs across the economy.

    “These data will be welcome news for policymakers,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics.

    A second report from the Institute for Supply Management showed the U.S. manufacturing industry is improving by a touch more than economists expected, but it’s still contracting. Manufacturing has been one of the hardest-hit areas of the economy recently, while the job market and spending by U.S. households have remained resilient.

    Treasury yields slumped immediately after the reports and then yo-yoed though the day. The yield on the 10-year Treasury eventually slipped to 3.91% from 3.94% late Tuesday. It’s been generally falling since topping 5% in October, when it was putting strong downward pressure on the stock market.

    In the afternoon, yields swung again after the Federal Reserve released the minutes from its latest policy meeting. It was at that meeting in December that policy makers hinted their dramatic campaign to hike interest rates to get inflation under control may be over. They also released projections showing their median official expects the federal funds rate to fall by 0.75 percentage points through 2024.

    The minutes from the meeting revealed “almost all participants” indicated a drop in rates this year would likely be appropriate. But they also said their forecasts were hampered by an “unusually elevated degree of uncertainty.” A reacceleration of inflation, which is still a possibility, could push them to actually raise rates further.

    Fed officials also noted in their meeting how stock prices have rallied recently and Treasury yields have eased. Such conditions can rev up the economy and add upward pressure on inflation.

    While the Fed doesn’t like that, “the worst they’ll do is push out the date when they first cut,” said Brian Jacobsen, chief economist at Annex Wealth Management.

    Traders are largely betting the first cut to rates could happen in March, and they’re putting a high probability on the Fed cutting its main interest rate by least 1.50 percentage points through the year, according to data from CME Group. The federal funds rate is currently sitting within a range of 5.25% to 5.50%.

    Critics say that’s likely too bold a prediction. “The only way the Fed will cut more than four times in 2024 is if the economy is skidding out of control” into a recession, Jacobsen said.

    Even if the Federal Reserve pulls off a perfect landing to shimmy away from high inflation without causing an economic downturn, some critics also say the stock market has simply run too far, too fast in recent months and is due for at least a pause in its run.

    In stock markets abroad, indexes fell across much of Europe and Asia. Losses were particularly sharp in France, where the CAC 40 fell 1.6%, and in South Korea, where the Kospi sank 2.3%. Stocks in Shanghai were an outlier, rising 0.2%.

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  • Stock market today: World stocks are mixed in muted holiday trading as 2023 draws to a close

    Stock market today: World stocks are mixed in muted holiday trading as 2023 draws to a close

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    BANGKOK — European shares opened higher on Friday after a mixed session in Asia on the last trading day of the year for most markets.

    Germany’s DAX rose 0.3% to 16,745.67 and the CAC 40 in Paris climbed 0.4% to 7,566.11. Britain’s FTSE 100 edged 0.2% higher to 7,736.52.

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

    Some world markets logged solid gains in 2023 while many have sagged. Benchmarks in France and Germany made double-digit advances while Britain’s has climbed just under 3%.

    Tokyo’s Nikkei 225 gave up 0.2% to 33,464.17. It gained 27% in 2023, its best year in a decade as the Japanese central bank inched toward ending its longstanding ultra-lax monetary policy after inflation finally exceeded its target of about 2%.

    The Hang Seng index in Hong Kong ended flat at 17,047.39, while the Shanghai Composite index gained 0.7% to 2,974.93. The Shanghai index lost about 3% this year and the Hang Seng fell nearly 14%.

    Australia’s S&P/ASX 200 shed 0.3% to 7,590.80, having gained about 6% for the year.

    India’s Sensex slipped 0.3% to 72,279.18. It has gained more than 18% this year, reaching new highs as retail investors bought heavily on expectations that the Federal Reserve will begin cutting interest rates next year, giving the U.S. and other economies a boost after it managed to bring inflation down from a peak of over 9% in 2022.

    Taiwan’s Taiex edged 0.1% higher. It ended the year up more than 26%, powered by strong gains for semiconductor makers.

    Markets were closed in South Korea and Thailand.

    On Thursday, Wall Street was mostly quiet ahead of the final trading day of the year, though every major index is on track for weekly gains.

    The S&P 500 rose 0.1% and was on track for its ninth straight week of gains. It is up more than 24% for the year. A two-month rally has also pushed the benchmark index closer to breaking its all-time high set in January of 2022.

    The Dow Jones Industrial Average rose 0.1% and has gained 3.5% in 2023.

    The Nasdaq composite fell less than 0.1%. It has far outpaced the broader market this year and is on track to close 2023 with a gain of more than 44%.

    There are few economic indicators out of Washington this week. The latest weekly report on unemployment benefits showed that applications rose last week, but not enough to raise concerns about the labor market or broader economy. The overall jobs market has been strong throughout 2023 and has been a driving force for the economy.

    The average long-term U.S. mortgage rate retreated for the ninth straight week to its lowest level since May, according to mortgage buyer Freddie Mac. Mortgage rates have been easing since late October, along with long-term Treasury yields.

    The yield on the 10-year Treasury was at 3.87% early Friday. It surpassed 5.00% in October, but has been generally falling since then.

    U.S. benchmark crude oil was up 55 cents at $72.32 per barrel in electronic trading on the New York Mercantile Exchange.

    Brent crude advanced 70 cents to $77.85 per barrel.

    Companies will soon wrap up their latest financial quarter and will start releasing those results in January. Overall, companies in the S&P 500 have notched relatively strong profit gains after stumbling during the first half of 2023. That has given Wall Street more hope the economy will remain strong in 2024.

    The Federal Reserve’s preferred measure of inflation fell to 2.6% in November from a peak of 7.1% in 2022. That has helped improve forecasts for companies worried about inflation squeezing consumers and raising costs.

    Wall Street is betting that the Fed is done raising interest rates and will likely shift to rate cuts in the new year. The central bank has held rates steady since its meeting in July, and Wall Street expects it to start cutting rates as early as March.

    In currency dealings Friday, the U.S. dollar rose to 141.72 Japanese yen from 141.41 yen. The euro fell to $1.1052 from $1.1063.

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  • Stock market today: Asian stocks mixed in muted holiday trading as 2023 draws to a close

    Stock market today: Asian stocks mixed in muted holiday trading as 2023 draws to a close

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    BANGKOK — Asian shares were mixed in muted trading on Friday, the last trading day of the year, with some regional markets logging solid gains in 2023 while many sagged.

    U.S. futures and oil prices edged higher.

    Tokyo’s Nikkei 225 gave up 0.6% to 33,358.11. It is up nearly 30% in 2023, its best year in a decade as the Japanese central bank inches toward ending its longstanding ultra-lax monetary policy.

    The Hang Seng index in Hong Kong was down 0.5% at 16,966.77, while the Shanghai Composite index gained 0.3% to 2,964.68. The Shanghai index has lost about 4% this year and the Hang Seng is down nearly 15%.

    Australia’s S&P/ASX 200 shed 0.4% to 7,582.20, having gained 6.2% for the year.

    India’s Sensex slipped 0.2% to 72,255.72. It has gained more than 18% this year, reaching new highs as investors bought heavily on expectations that the Federal Reserve will begin cutting interest rates next year, giving the U.S. and other economies a boost after it managed to bring inflation down from a peak of over 9% in 2022.

    Taiwan’s Taiex was flat, but it is ending the year up more than 26%, powered by strong gains for semiconductor makers.

    On Thursday, Wall Street was mostly quiet ahead of the final trading day of the year, though every major index is on track for weekly gains.

    The S&P 500 rose 0.1% to 4,783.35. It is on track for its ninth straight week of gains and is up more than 24% for the year. The two-month rally has also pushed the benchmark index closer to breaking its all-time high set in January of 2022.

    The Dow Jones Industrial Average rose 0.1%, to 37,710.10.

    The Nasdaq composite fell less than 0.1%, to 15,095.14. It has far outpaced the broader market this year and is on track to close 2023 with a gain of more than 44%.

    There are few economic indicators out of Washington this week. The latest weekly report on unemployment benefits showed that applications rose last week, but not enough to raise concerns about the labor market or broader economy. The overall jobs market has been strong throughout 2023 and has been a driving force for the economy.

    The average long-term U.S. mortgage rate retreated for the ninth straight week to its lowest level since May, according to mortgage buyer Freddie Mac. Mortgage rates have been easing since late October, along with long-term Treasury yields.

    The yield on the 10-year Treasury was at 3.84% early Friday. It surpassed 5.00% in October, but has been generally falling since then.

    Apple rose 0.2% after a federal court temporarily lifted a sales halt for two higher-end models of the Apple Watch that the International Trade Commission had imposed due to a patent dispute.

    Technology and communication company stocks had some of the biggest gains. Chipmaker Advanced Micro Devices rose 1.8%.

    U.S. crude oil prices fell 3.2% and weighed down energy stocks. Hess fell 2.6%.

    Early Friday, U.S. benchmark crude was up 36 cents at $72.13 per barrel in electronic trading on the New York Mercantile Exchange.

    Brent crude advanced 45 cents to $77.60 per barrel.

    Companies will soon wrap up their latest financial quarter and will start releasing those results in January. Overall, companies in the S&P 500 have notched relatively strong profit gains after stumbling during the first half of 2023. That has given Wall Street more hope the economy will remain strong in 2024.

    The Federal Reserve’s preferred measure of inflation fell to 2.6% in November from a peak of 7.1% in 2022. That has helped improve forecasts for companies worried about inflation squeezing consumers and raising costs.

    Wall Street is betting that the Fed is done raising interest rates and will likely shift to rate cuts in the new year. The central bank has held rates steady since its meeting in July, and Wall Street expects it to start cutting rates as early as March.

    In currency dealings Friday, the U.S. dollar rose to 141.43 Japanese yen from 141.41 yen. The euro climbed to $1.1070 from $1.1063.

    ____

    AP Business Writer Damian J. Troise contributed.

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  • Legendary investor Jim Rogers sees an epic market bubble and looming economic disaster. He hopes to short the 'Magnificent 7' stocks when the time is right.

    Legendary investor Jim Rogers sees an epic market bubble and looming economic disaster. He hopes to short the 'Magnificent 7' stocks when the time is right.

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    Jim Rogers.REUTERS/Bobby Yip

    • Jim Rogers expects a multi-asset bubble to burst and the American economy to run into trouble.

    • George Soros’ cofounder hopes to profit by shorting the “Magnificent Seven” stocks at the right time.

    • Rogers touted gold and silver, warned the inflation threat isn’t over, and slammed the Fed.

    Jim Rogers expects asset prices to plunge and economic disaster to strike — and he plans to profit by betting against stock-market darlings like Tesla and Nvidia when the time is right.

    “Bonds are a bubble, property in many countries is a bubble, stocks are getting ready for a bubble,” the veteran investor and travel author told Soar Financially in a recent interview.

    Rogers has dumped many of his stocks and bonds in anticipation of a painful slump, but he’s “not shorting yet because often at the end there’s a blowoff and things get really crazy,” he said.

    He flagged “warning signs” of an approaching collapse, including a handful of stocks dragging the major indices higher this year, and newbie investors boasting to all of their friends about how easy it is to make money trading stocks.

    The markets guru, best known for cofounding the Quantum Fund and Soros Fund Management with George Soros, said he’s itching to bet against the “Magnificent Seven” stocks — Apple, Alphabet, Amazon, Microsoft, Meta, Tesla, and Nvidia.

    “When the market comes to an end, the last high flyers are the best shorts,” he said. “The stocks that have done extremely well and are very expensive — that, I hope, is where I’m smart enough to short next time around.”

    Rogers, 81, also predicted the US economy would run into trouble soon as a result of its ballooning debt pile.

    “I would suspect that next year things are not going to look as happy,” he said. Rogers noted he wasn’t sure if a recession or mild downturn lies ahead, but he’s “worried” that there hasn’t been a prolonged economic slump since the 2008 financial crisis, and global debt loads have ballooned since then.

    “The next problem has to be the worst in my lifetime because the debt is just unbelievable,”  he said.

    Rogers advised people to own precious metals, which tend to retain their value better than other assets during periods of panic.

    “Everybody should have some silver and gold under the bed,” he said. “Look, all of us peasants know, when there’s a serious catastrophe, you better have some gold and silver in the closet, so I do.”

    The “Adventure Capitalist” author also predicted inflation, which has cooled significantly in the past year, would reaccelerate to painful levels. Moreover, he accused the Federal Reserve of having no idea what it’s doing, and dismissed all but a couple of the central bank’s leaders over the last century as clueless “bureaucrats and academics.”

    Rogers has a wealth of experience and a deep understanding of financial history, but it’s worth pointing out that he’s been predicting the worst downturn of his lifetime for several years now, yet both markets and the economy have defied his grave warnings.

    Read the original article on Business Insider

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  • Stock market today: Stocks waver in muted holiday trading on Wall Street

    Stock market today: Stocks waver in muted holiday trading on Wall Street

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    Stocks drifted to a mixed finish in muted trading on Wall Street Thursday as markets approach the end of 2023.

    The broader market remained mostly quiet ahead of the final trading day of the year, though every major index is on track for weekly gains.

    The S&P 500 rose 1.77 points, or less than 0.1% to 4,783.35. It is on track for its ninth straight week of gains and is up more than 24% for the year. The two-month rally has also pushed the benchmark index closer to breaking its all-time high set in January of 2022.

    The Dow Jones Industrial Average rose 53.58 points, or 0.1%, to 37,710.10.

    The Nasdaq composite fell 4.04 points, or less than 0.1%, to 15,095.14. It has far outpaced the broader market this year and is on track to close 2023 with a gain of more than 44%.

    Markets in Asia gained ground. Tokyo’s Nikkei 225 index was an outlier in Asia, shedding 0.4%. Speculation over whether and when the Bank of Japan might ease its longstanding lax monetary policy and raise its key interest rate from minus 0.1% has kept stocks wobbling in the world’s third-largest economy.

    Markets in Europe fell.

    There are few economic indicators out of Washington this week. The latest weekly report on unemployment benefits showed that applications rose last week, but not enough to raise concerns about the labor market or broader economy. The overall jobs market has been strong throughout 2023 and has been a driving force for the economy.

    The average long-term U.S. mortgage rate retreated for the ninth straight week to its lowest level since May, according to mortgage buyer Freddie Mac. Mortgage rates have been easing since late October, along with long-term Treasury yields.

    The yield on the 10-year Treasury surpassed 5.00% in October, but has also been generally falling since then. It rose to 3.84% on Thursday from 3.79% late Wednesday.

    There was also a lack of big corporate news for investors.

    Two higher-end models of the Apple Watch can go on sale again after a federal court temporarily lifted a sales halt ordered by the International Trade Commission due to a patent dispute. Apple rose 0.2%.

    Technology and communication company stocks had some of the biggest gains. Chipmaker Advanced Micro Devices rose 1.8%.

    U.S. crude oil prices fell 3.2% and weighed down energy stocks. Hess fell 2.6%.

    Companies are close to wrapping up their latest financial quarter and the next big batch of news will come when they start releasing those results later in January. Overall, companies in the S&P 500 have notched relatively strong profit gains after stumbling during the first half of 2023. That has given Wall Street more hope the economy will remain strong in 2024.

    Analysts polled by FactSet expect companies in the S&P 500 to report earnings growth of 1.4% in the fourth quarter and say profit growth should accelerate next year.

    Inflation has steadily eased since 2022 and should continue cooling into next year. The Federal Reserve’s preferred measure of inflation fell to 2.6% in November from a peak of 7.1% in 2022. That has helped improve forecasts for companies worried about inflation squeezing consumers and raising costs.

    Economic data over the last few months have raised hopes that the economy can dodge a recession. Wall Street is betting that the Fed is done raising interest rates and will likely shift to rate cuts in the new year. The central bank has held rates steady since its meeting in July, and Wall Street expects it to start cutting rates as early as March.

    ____

    Elaine Kurtenbach and Matt Ott contributed to this report.

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  • How major US stock indexes fared Thursday, 12/28/2023

    How major US stock indexes fared Thursday, 12/28/2023

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    Stocks wavered on Wall Street in muted trading as 2023 nears its finish

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  • Stock market today: US futures follow global markets lower ahead of raft of jobs data this week

    Stock market today: US futures follow global markets lower ahead of raft of jobs data this week

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    Wall Street followed global stocks lower Monday ahead of a slew of economic data on the labor market this week.

    Futures slipped, with the Dow Jones Industrial Average falling 0.3% before the bell while the S&P 500 gave up 0.4%.

    Wall Street ended Friday with its fifth straight weekly gain as a growing number of signs suggest that the U.S. Federal Reserve may be done raising interest rates to curtail rising costs. Inflation has slowed measurably since last year following a series of rate hikes.

    The hikes are intended to cool the economy and slow hiring, and there is growing evidence that the Fed has had some success.

    A report Thursday from the Commerce Department showed that prices were unchanged from September to October, down from a 0.4% rise the previous month. Compared with a year ago, consumer prices rose 3% in October, below the 3.4% annual rate in September. That was the lowest year-over-year inflation rate in more than 2 1/2 years.

    While the labor markets remain strong, the rising cost of borrowing has pushed companies, particularly in the tech sector, to slow down.

    Spotify said Monday that it was cutting 17% of its workforce, about 1,500 employees at the streaming music and podcast platform, citing high interest rates. Spotify share rose 2.3% before the opening bell.

    The U.S. releases new data on job openings Tuesday, the number of weekly claims for unemployment benefits Thursday, and its monthly jobs data for November on Friday.

    Alaska Airlines agreed to buy Hawaiian Airlines in a $1.9 billion deal announced Sunday, a tie-up that would test the Biden administration that is already fighting consolidation in the airline sector.

    Alaska will pay $18 in cash for each share of Hawaiian, whose stock nearly tripled in off hours trading, to $13.85, after closing Friday at $4.86.

    Alaska Air Group tumbled nearly 12%.

    In Europe at midday, France’s CAC 40 shed 0.3%, while Germany’s DAX inched up 0.1%. Britain’s FTSE 100 declined 0.4%.

    China Evergrande’s Hong Kong traded shares gained 9.2% after a Hong Kong court postponed until Jan. 29 a hearing on its plan to restructure its massive debts. The property developer faces possible liquidation if creditors reject its restructuring plan.

    Hong Kong’s Hang Seng lost 1.1% to 16,646.05, while the Shanghai Composite edged 0.3% lower to 3,022.91.

    Japan’s benchmark Nikkei 225 shed 0.6% to finish at 33,231.27. Australia’s S&P/ASX 200 added 0.7% to 7,124.70. South Korea’s Kospi rose 0.4% to 2,514.95.

    Inflation data are also expected this week for several nations in Asia, including Japan, Thailand and the Philippines.

    In energy trading, benchmark U.S. crude lost 43 cents to $73.64 a barrel in electronic trading on the New York Mercantile Exchange. Overall, oil prices have been easing for several months. Brent crude, the international standard, fell 44 cents to $78.44 a barrel.

    In currency trading, the U.S. dollar declined to 146.57 Japanese yen from 146.76 yen. The euro cost $1.0869, down from $1.0885.

    Bitcoin’s comeback continued, with the digital currency breaching the $40,000 mark for the first time since April of 2022. It’s up more than 150% in 2023 after opening the year around $16,600.

    On Friday, the S&P 500 reached its highest level in more than a year, gaining 0.6%. The Dow Jones Industrial Average closed 0.8% higher, while the Nasdaq composite added 0.6%.

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  • Stock market today: US futures follow global markets lower ahead of raft of jobs data this week

    Stock market today: US futures follow global markets lower ahead of raft of jobs data this week

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    Wall Street followed global stocks lower Monday ahead of a slew of economic data on the labor market this week.

    Futures slipped, with the Dow Jones Industrial Average falling 0.3% before the bell while the S&P 500 gave up 0.4%.

    Wall Street ended Friday with its fifth straight weekly gain as a growing number of signs suggest that the U.S. Federal Reserve may be done raising interest rates to curtail rising costs. Inflation has slowed measurably since last year following a series of rate hikes.

    The hikes are intended to cool the economy and slow hiring, and there is growing evidence that the Fed has had some success.

    A report Thursday from the Commerce Department showed that prices were unchanged from September to October, down from a 0.4% rise the previous month. Compared with a year ago, consumer prices rose 3% in October, below the 3.4% annual rate in September. That was the lowest year-over-year inflation rate in more than 2 1/2 years.

    While the labor markets remain strong, the rising cost of borrowing has pushed companies, particularly in the tech sector, to slow down.

    Spotify said Monday that it was cutting 17% of its workforce, about 1,500 employees at the streaming music and podcast platform, citing high interest rates. Spotify share rose 2.3% before the opening bell.

    The U.S. releases new data on job openings Tuesday, the number of weekly claims for unemployment benefits Thursday, and its monthly jobs data for November on Friday.

    Alaska Airlines agreed to buy Hawaiian Airlines in a $1.9 billion deal announced Sunday, a tie-up that would test the Biden administration that is already fighting consolidation in the airline sector.

    Alaska will pay $18 in cash for each share of Hawaiian, whose stock nearly tripled in off hours trading, to $13.85, after closing Friday at $4.86.

    Alaska Air Group tumbled nearly 12%.

    In Europe at midday, France’s CAC 40 shed 0.3%, while Germany’s DAX inched up 0.1%. Britain’s FTSE 100 declined 0.4%.

    China Evergrande’s Hong Kong traded shares gained 9.2% after a Hong Kong court postponed until Jan. 29 a hearing on its plan to restructure its massive debts. The property developer faces possible liquidation if creditors reject its restructuring plan.

    Hong Kong’s Hang Seng lost 1.1% to 16,646.05, while the Shanghai Composite edged 0.3% lower to 3,022.91.

    Japan’s benchmark Nikkei 225 shed 0.6% to finish at 33,231.27. Australia’s S&P/ASX 200 added 0.7% to 7,124.70. South Korea’s Kospi rose 0.4% to 2,514.95.

    Inflation data are also expected this week for several nations in Asia, including Japan, Thailand and the Philippines.

    In energy trading, benchmark U.S. crude lost 43 cents to $73.64 a barrel in electronic trading on the New York Mercantile Exchange. Overall, oil prices have been easing for several months. Brent crude, the international standard, fell 44 cents to $78.44 a barrel.

    In currency trading, the U.S. dollar declined to 146.57 Japanese yen from 146.76 yen. The euro cost $1.0869, down from $1.0885.

    Bitcoin’s comeback continued, with the digital currency breaching the $40,000 mark for the first time since April of 2022. It’s up more than 150% in 2023 after opening the year around $16,600.

    On Friday, the S&P 500 reached its highest level in more than a year, gaining 0.6%. The Dow Jones Industrial Average closed 0.8% higher, while the Nasdaq composite added 0.6%.

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  • Bonds Retreat as Doubts Over Rate Cuts Creep In: Markets Wrap

    Bonds Retreat as Doubts Over Rate Cuts Creep In: Markets Wrap

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    (Bloomberg) — Stocks and bonds retreated as traders pause after November’s blockbluster rally and debate the case for interest rate cuts. Bitcoin surged past $41,000, while gold briefly touched an all time high.

    Most Read from Bloomberg

    The 10-year Treasury yield added four basis points to 4.24%, while European stocks and US futures posted modest losses. Gold surpassed $2,130 an ounce before giving up gains for the day.

    A slew of economic reports this week are expected to shed light on the state of the US labor market and whether markets are prematurely excited that softer economic conditions can open the door to Federal Reserve rate cuts.

    “Rates seem to price more the positive news than not,” Mauro Valle, head of fixed income at Generali Investments Partners, wrote in a note. “It’s unlikely to see another movement for lower yields in the final weeks of the year.”

    The latest reading on US job openings (or JOLTS) for October is due to be published tomorrow, followed by ADP’s National Employment Report on Wednesday and non-farm payrolls on Friday.

    Gold slid from its intraday high, trading around $2,063 an ounce. Bitcoin climbed past the $41,000 level to the highest since April 2022.

    “As long as those rate conditions stay where they are, gold will remain supported over the next three to four weeks,” Eric Robertsen, global head of research and chief strategist at Standard Chartered Bank, said on Bloomberg Television.

    Indian equities were headed for a fresh record after Prime Minister Narendra Modi’s victories in three key state elections boosted expectations of policy continuity.

    Shares of distressed developer China Evergrande Group surged as much as 22% after a Hong Kong court again postponed a decision on whether the world’s most-indebted property developer should be wound up.

    Key events this week:

    • Riskbank November meeting minutes released, Monday

    • US factory orders, durable goods, Monday

    • Reserve Bank of Australia rate decision, Tuesday

    • Japan’s Tokyo CPI, Tuesday

    • China Caixin services PMI, Tuesday

    • South Korea CPI, GDP, Tuesday

    • Eurozone PMIs, Tuesday

    • Australia GDP, Wednesday

    • Eurozone retail sales, Wednesday

    • Bank of Canada rate decision, Wednesday

    • China trade, FX reserves, Thursday

    • Eurozone GDP, Thursday

    • Germany industrial production, Thursday

    • US wholesale inventories, initial jobless claims, Thursday

    • Japan household spending, GDP, Friday

    • US non-farm payrolls, University of Michigan consumer sentiment, Friday

    Some of the main moves in markets:

    Stocks

    • The Stoxx Europe 600 fell 0.2% as of 9:45 a.m. London time

    • S&P 500 futures fell 0.3%

    • Nasdaq 100 futures fell 0.3%

    • Futures on the Dow Jones Industrial Average fell 0.2%

    • The MSCI Asia Pacific Index was little changed

    • The MSCI Emerging Markets Index was little changed

    Currencies

    • The Bloomberg Dollar Spot Index rose 0.1%

    • The euro was little changed at $1.0878

    • The Japanese yen rose 0.1% to 146.66 per dollar

    • The offshore yuan fell 0.2% to 7.1401 per dollar

    • The British pound fell 0.2% to $1.2680

    Cryptocurrencies

    • Bitcoin rose 4.9% to $41,687.05

    • Ether rose 3.5% to $2,259.54

    Bonds

    • The yield on 10-year Treasuries advanced four basis points to 4.24%

    • Germany’s 10-year yield was little changed at 2.37%

    • Britain’s 10-year yield advanced four basis points to 4.18%

    Commodities

    This story was produced with the assistance of Bloomberg Automation.

    –With assistance from Alex Nicholson.

    Most Read from Bloomberg Businessweek

    ©2023 Bloomberg L.P.

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  • Stock market today: World shares mostly higher ahead of US price update, OPEC+ meeting

    Stock market today: World shares mostly higher ahead of US price update, OPEC+ meeting

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    BANGKOK — World shares were mostly higher Thursday ahead of an update on U.S. consumer inflation and a meeting of oil producers in Vienna.

    U.S. futures rose and oil prices also advanced.

    Germany’s DAX edged 0.1% higher to 16,189.89 and the CAC 40 in Paris also gained 0.1% to 7,277.03. Britain’s FTSE 100 picked up 0.3% to 7,448.08. The future for the S&P 500 rose 0.1% and that for the Dow Jones Industrial Average was up 0.4%.

    Later Thursday, the U.S. government is due to release its October data on the Federal Reserve’s preferred measure of inflation. Economists expect that measure to continue easing, as it has been since the middle of 2022. The Federal Reserve is expected to keep its benchmark interest rate steady when it meets in December and to eventually begin paring rates down if inflation remains under control.

    The prospect of a potential easing of interest rates has relaxed upward pressure on the U.S. dollar, allowing currencies like the Japanese yen to gain. That could relieve inflationary pressures that have cast the Bank of Japan’s longstanding lax monetary policy into question.

    In Asia, Tokyo’s Nikkei 225 gained 0.5% on Thursday to 33,486.89.

    The Hang Seng in Hong Kong was up 0.2% at 17,030.49. The Shanghai Composite index added 0.3% to 3,029.67.

    An official survey of Chinese factory managers showed manufacturing activity slowed in November, indicating further weakness in the world’s second-largest economy despite recent signs of improvement.

    “The latest surveys suggest that the economy continued to lose steam in November. However, they may be overstating the extent of slowdown due to sentiment effects,” Sheana Yue of Capital Economics said in a commentary.

    South Korea’s Kospi advanced 0.6% to 2,535.29. In Australia, the S&P/ASX 200 climbed 0.7% to 7,087.30. In Bangkok, the SET fell 0.7%. India’s Sensex gained 0.2% and Taiwan’s Taiex picked up 0.4%.

    The members of OPEC+, whose oil income props up their economies, were trying to forge a consensus on production cuts after postponing a meeting originally set for Sunday.

    U.S. benchmark crude oil climbed 68 cents to $78.54 a barrel in electronic trading on the New York Mercantile Exchange. It gained $1.45 on Wednesday to $77.86 a barrel.

    Brent crude, the international standard, added 74 cents to $83.61 a barrel.

    On Wednesday, the S&P 500 closed 0.1% lower and the Dow industrials gained just 0.1%. The tech-heavy Nasdaq composite fell 0.2% to 14,258.49.

    The day brought encouraging news that the U.S. economy grew at a brisk 5.2% annual pace from July through September, an upgrade from the earlier estimate of 4.9%. Consumer spending, the lifeblood of the economy, rose at a 3.6% annual rate from July through September. That’s still healthy, but a downgrade from the previous estimate of 4%.

    Treasury yields fell, taking more pressure off of stocks. The yield on the 10-year Treasury, which influences mortgage rates, slipped to 4.29% from 4.33%. The yield on the 2-year Treasury fell sharply to 4.66% from 4.75%.

    In currency dealings, the dollar rose to 147.49 Japanese yen from 147.24 yen. The euro fell to $1.0926 from $1.0971.

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  • Stock market today: Wall Street ends mixed in half-day session, marks fourth straight winning week

    Stock market today: Wall Street ends mixed in half-day session, marks fourth straight winning week

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    Stocks drifted to a mixed finish Friday after a half-day trading session capped a holiday shortened week that left the major indexes with their fourth straight winning week.

    The S&P 500 inched up 0.1% after wavering between small gains and losses much of the day. The Dow Jones Industrial Average added 0.3% and the Nasdaq composite slipped 0.1%.

    All told, the S&P 500 added 2.72 points to 4,559.34. The Dow rose 117.12 points to 35,390.15, and the Nasdaq fell 15 points to 14,250.85.

    Trading was muted as markets reopened following the Thanksgiving holiday on Thursday. Gains in health care, financial, energy and other sectors helped temper losses in technology and communication services stocks.

    Chipmaker Nvidia and Google parent Alphabet were among the biggest decliners, losing 1.9% and 1.3%, respectively. Among the big gainers in the S&P 500 were CF Industries, which rose 2.6%, and Best Buy, which closed 2.2% higher.

    The major stock indexes’ latest weekly gains reflect a turnaround in the market’s sentiment in November following a three-month slide. Traders have grown cautiously optimistic that inflation has cooled enough for the Federal Reserve to finally be done with its market-crunching hikes to interest rates.

    Forecasts for a potential recession have been pushed further out into 2024 while also being softened. The rate of inflation continues to ease, consumer spending remains solid and the economy is generally humming along. That has encouraged hopes, and bets, that the Federal Reserve might even consider cutting rates.

    Fed officials, though, have said the outlook for the economy remains uncertain and they’ll make upcoming decisions on rates based on incoming reports. The Fed will get another big update next week when the government releases its October report for a key inflation measure tracked by the central bank.

    In the bond market, Treasury yields broadly rose Friday. The yield on the 10-year Treasury, which influences interest rates on mortgages and other loans, rose to 4.47% from 4.41% late Wednesday. The yield on the 2-year Treasury rose to 4.95% from 4.90% late Wednesday.

    Oil prices, a key driver of inflation, continued to ease Friday, with U.S. crude sliding 2%. Oil prices have plunged in recent weeks amid worries about a mismatch between too much crude supply and too little demand.

    Investors are watching to see how U.S. retailers will fare as the holiday shopping season kicks off with Black Friday, given growing concerns that spending may slow under pressure from dwindling savings, rising credit card debt and inflation.

    The latest quarterly results from a string of retailers from Walmart to Best Buy to Saks Fifth Avenue suggested a weakening of consumer appetites for spending even as inflation eases and employment remains robust.

    Shares were mostly higher in Europe. Germany’s DAX edged up 0.2, while the CAC 40 in Paris edged up 0.2%. Britain’s FTSE 100 added 0.1%.

    Asian markets ended mixed. Tokyo’s Nikkei 225 added 0.5% after Japan reported its consumer inflation rose for the first time in four months, with big gains in food prices and hotel rates as tourism has soared. The consumer price index rose 3.3% in October from a year earlier, up from 3% in September in a trend contrary to the Bank of Japan’s forecasts for price pressures to abate toward the year’s end.

    “Both the government and the BOJ will be concerned about higher-than-expected inflation,” Robert Carnell and Min Joo Kang of ING Economics said in a commentary. That will likely lead the central bank to adjust its extremely lax monetary policy in the new year, they said.

    In China, shares fell back after recent gains driven by expectations of more government support for debt-burdened property developers. Shares in Country Garden, one of the biggest, sank 7.6% after gaining 16% the day before.

    In Hong Kong, the Hang Seng fell 2%, while the Shanghai Composite index lost 0.7%.

    Elsewhere in Asia, South Korea’s Kospi declined 0.7%, while the S&P/ASX 200 in Australia gained 0.2%.

    ___

    AP Business Writer Elaine Kurtenbach contributed.

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  • Stock Market Today: Asian stocks rise following Wall Street’s 3rd straight winning week

    Stock Market Today: Asian stocks rise following Wall Street’s 3rd straight winning week

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    HONG KONG — Asian shares were higher Monday after Wall Street closed its third straight winning week with a tiny gain.

    U.S. futures were lower while oil prices gained as investors looking ahead to OPEC plus meetings.

    Japan’s Nikkei 225 index broke its September peak, hitting a 33-year high, and then fell to 33,388.03, shedding 0.6%.

    The Hang Seng in Hong Kong added 1.5% to 17,719.07, and the Shanghai Composite index advanced 0.4% to 3,066.85. China announced on Monday that it would keep its benchmark lending rates unchanged as expected due to a weaker yuan and the need to assess the impact of recent stimulus measures on the economy.

    In South Korea, the Kospi was 1% higher, at 2,495.60. Australia’s S&P/ASX 200 edged 0.1% higher to 7,058.40. Taiwan’s Taiex was little changed. The SET in Bangkok gained 0.2% as the state planning agency announced Monday that Thailand’s economy grew slower than expected in the last quarter due to weakness in exports and agriculture, despite strong consumer spending and a recovery in tourism.

    On Friday, the S&P 500 edged up 0.1% to 4,514.02 and is near its highest level in three months. The Dow Jones Industrial Average inched up less than 0.1% to 34,947.28 and the Nasdaq composite gained 0.1% to 14,125.48.

    Several retailers made strong gains after reporting better results for the latest quarter than analysts expected. Gap surged 30.6% after reporting much higher profit than Wall Street had forecast, more than doubling its stock’s gain for the year so far. Ross Stores climbed 7.2% after reporting stronger profit and revenue than expected.

    On the losing end was BJ’s Wholesale Club, which fell 4.8% despite also reporting better results than expected. Analysts pointed to an underlying sales figure that strips out the boost from store openings, which fell short of expectations.

    Retailers are closing out what’s been a better-than-hoped earnings reporting season for the summer. Companies in the S&P 500 are on track to report their first overall growth in a year, according to FactSet.

    More important are hopes that inflation has cooled enough for the Federal Reserve to finally stop its market-crunching hikes to interest rates.

    The Fed has already raised its main interest rate to the highest level since 2001, trying to slow the economy and dent financial markets just enough to get inflation under control without causing a painful recession.

    Now traders are trying to bet on when the Fed could actually begin cutting interest rates, something that can juice prices for investments and provide oxygen for the financial system. The Fed has said that it plans to keep rates high for a while to ensure that the battle against inflation is definitively won, but traders are thinking cuts could begin early in the summer of 2024.

    In the bond market, the yield on the 10-year Treasury rose to 4.45% from 4.44% late Friday. Just a few weeks ago, it was above 5%, at its highest level since 2007 and undercutting prices for stocks and other investments.

    Too steep a drop in Treasury yields and too big a rally in stock prices could conspire to work against Wall Street. Chair Jerome Powell said after the Fed’s last meeting on interest rates that it may not hike any more if the summer’s jump in Treasury yields and fall in stock prices remained “persistent.” That’s because such pressures could act like substitutes for more rate increases on their own.

    One source of potential worry about inflation has been receding in recent weeks. Oil prices have plunged amid worries about a mismatch between too much crude supply and too little demand.

    A barrel of U.S. crude for December delivery gained 69 cents to $76.73. It rose $2.99 to settle at $75.89 on late Friday, recovering some of its sharp losses from earlier in the week. But it’s still well below its perch above $93 in late September.

    Brent crude, the international standard, rose 73 cents to $81.34 per barrel.

    In currency trading, the U.S. dollar dropped to 149.15 Japanese yen from 149.58 yen. It had been trading near 152 yen to the dollar last week, but analysts said expectations for lower U.S. interest rates are driving sales of dollars, pushing the yen higher.

    The euro cost $1.0917, rising from $1.0912.

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  • Stock market today: Asian shares are mostly lower in quiet trading ahead of Biden-Xi meeting

    Stock market today: Asian shares are mostly lower in quiet trading ahead of Biden-Xi meeting

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    HONG KONG — Shares edged lower Monday in quiet trading in Asia ahead of a meeting this week between U.S. President Joe Biden and Chinese leader Xi Jinping.

    Tokyo advanced but other markets were little changed, edging lower. Oil prices fell.

    Biden and Xi are due to meet on the sidelines of the Asia Pacific Economic Cooperation summit this week amid hopes for improved ties between the two biggest economies.

    On Friday, Wall Street rose sharply to add to an already strong November, which is on track to be one of the market’s best months of the year. Expectations for an interest rate hike by the U.S. Federal Reserve in December, despite a report showing consumer inflation expectations on the rise.

    Tokyo’s Nikkei 225 added 0.5% to 32,742.00 and the Hang Seng in Hong Kong edged 0.1% higher to 17,227.10.

    The Shanghai Composite index slipped 0.1% to 3,035.95 and the Kospi in Seoul also fell 0.1%, to 2,408.37.

    Australia’s S&P/ASX 200 declined 0.1% to 6,972.20.

    On Wall Street on Friday, the S&P 500 jumped 1.6% to 4,415.24. The Dow gained 1.2% to 34,283.10, and the Nasdaq jumped 2% to 13,798.11.

    Big Tech stocks were the strongest forces pushing upward on the S&P 500, including a 2.3% gain for Apple and 2.5% rise for Microsoft.

    This earnings reporting season is turning out much better than analysts expected, and it’s likely to show the first growth in earnings per share for S&P 500 companies in a year, according to FactSet. But the focus is swinging toward what companies will do later this year and beyond as interest rates remain high and the U.S. economy is expected to slow.

    Hologic jumped 7.3% for the biggest gain in the S&P 500 after the maker of diagnostics and other products focused on women’s health reported better profit for the latest quarter than expected.

    Doximity was another winner, up 16.2% after it likewise reported stronger profit than forecast.

    The Federal Reserve has said it wants to keep such expectations low because they otherwise could lead to a vicious cycle that keeps inflation high. The release of the University of Michigan report initially caused Treasury yields to pare their drops, which caused stock indexes to wobble. But the stock market quickly shrugged off the data and continued to rise.

    By late Friday, traders were betting on only a 9.1% chance that the Fed will raise its main interest rate at its next meeting in December, according to data from CME Group. That’s down from 14.6% a day earlier.

    High interest rates and bond yields hurt prices for stocks and other investments, while slowing the economy broadly and raising the pressure on the financial system in hopes of getting inflation under control.

    On Thursday, a jump in Treasury yields knocked stocks lower to break an eight-day winning streak for the S&P 500, one of its longest in the last two decades. That came after the Fed’s Powell dashed some of the hopes building among traders that the Federal Reserve may finally be done hiking its main interest rate.

    After the 10-year Treasury yield popped above 5% last month to its highest level since 2007, in part on expectations for big borrowing by the U.S. government, the S&P 500 briefly dropped more than 10% below its high point for the year. Since then, the market has rebounded as “year-end greed” set in and the 10-year yield regressed, the strategists wrote in a BofA Global Research report.

    In the oil market early Monday, a barrel of benchmark U.S. crude for delivery in December lost 55 cents to $76.62. It rose $1.43 on Friday to settle at $77.17.

    Brent crude, the international standard, was down 60 cents at $80.83 per barrel. On Friday it added $1.42 to $81.43 per barrel. Both still lost close to 4% last week on worries about supplies outstripping demand.

    In currency dealings, the dollar rose to 151.66 Japanese yen from 151.47 yen. The euro was unchanged at $1.0686.

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  • Hologic, Doximity rise; Trade Desk, Plug Power fall, Friday, 11/10/2023

    Hologic, Doximity rise; Trade Desk, Plug Power fall, Friday, 11/10/2023

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    Stocks that traded heavily or had substantial price changes Friday: Hologic, Doximity rise; Trade Desk, Plug Power fall

    ByThe Associated Press

    November 10, 2023, 12:18 PM

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

    Trade Desk Inc., down $12.80 to $64.01.

    The digital-advertising platform gave investors a weak revenue forecast for the current quarter.

    Illumina Inc., down $8.61 to $98.37.

    The genetic testing tools company cut its profit forecast for the year.

    Unity Software Inc., up $1.77 to $27.01.

    The video gaming software company is reviewing potential changes to its product portfolio and cost structure.

    Doximity Inc., up $3.33 to $23.83.

    The medical social networking site raised its revenue forecast for its fiscal year.

    Plug Power Inc., down $2.39 to $3.54.

    The alternative energy company warned investors that it could face financial collapse within the next 12 months.

    Groupon Inc., down $4.71 to $8.82.

    The online daily deal service reported disappointing third-quarter earnings.

    Flowers Foods Inc., down $1.53 to $20.63.

    The bakery goods company trimmed its sales forecast for the year.

    Hologic Inc., up $4.93 to $72.13.

    The medical device maker beat analysts’ fiscal fourth-quarter earnings and revenue forecasts.

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  • Stock market today: Asian markets advance after Wall Street logs its best week in nearly a year

    Stock market today: Asian markets advance after Wall Street logs its best week in nearly a year

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    HONG KONG — Asian shares advanced Monday following Wall Street gains last week that were buoyed by hopes for early interest rate cuts.

    U.S. futures were higher and oil prices gained as the Israeli military announced late Sunday that it had encircled Gaza City and cut the besieged coastal strip in two, fueling investors’ fears of a deepening conflict.

    South Korean stocks surged 4% to 2,463.91, after the government restored a ban on short-selling, aiming to prevent illegal use of the trading tactic that is often used by hedge funds and investors. Short-selling refers to selling borrowed shares to profit from price declines.

    Japan’s Nikkei 225 index gained 2.3% to 32,670.38.

    However, the country’s services activity in October expanded at its slowest pace this year, raising concerns about weakness in a key sector driving Japanese economic activity.

    The Bank of Japan is gradually moving towards tightening its monetary policy as the central bank’s head stated on Monday that the country has made progress toward reaching its inflation target. But BOJ Gov. Kazuo Ueda said the change was not sufficient for raising its near zero interest rate stance.

    The Hang Seng in Hong Kong added 1.6% to 17,944.91 and the Shanghai Composite index was up 0.7% at 3,052.37. Australia’s S&P/ASX 200 rose 0.3% to 6,997.40. India’s Sensex was 0.5% higher and Bangkok’s SET gained 0.2%.

    Wall Street steamrolled higher Friday as it closed out its best week in nearly a year.

    The S&P 500 climbed 0.9%, to 4,358.34. It rose every day last week. The Dow Jones Industrial Average gained 0.7% to 34,061.32, and the Nasdaq composite jumped 1.4% to 13,478.28.

    Stocks have surged on rising hopes the Federal Reserve is finally done with its market-crunching hikes to interest rates, meant to get inflation under control. A report Friday underscored that pressure is easing on inflation, showing employers hired fewer workers last month than economists expected.

    Strong profit reports helped drive some stocks to towering gains. Generac, a maker of backup generators, soared nearly 28% for its best week since its stock began trading in 2010. At Expedia Group, another stronger-than-forecast report sent its stock nearly 22% higher for its best week since the market was surging out of the early 2020 coronavirus crash.

    Stock have struggled under the weight of rapidly rising Treasury yields. Those yields were in turn catching up to the Fed’s main interest rate, which is above 5.25% and at its highest level since 2001.

    Higher rates and yields slow the economy, hurt prices for investments and raise the risk of something breaking within the financial system.

    In the bond market, Treasury yields tumbled just after the jobs report, releasing more of the pressure that had built up on Wall Street. The yield on the 10-year Treasury eased to 4.58% early Monday from its highest level since 2007, at more than 5%, two weeks earlier.

    A separate report on Friday said growth in U.S. services industries, such as finance and construction, was weaker last month than economists expected.

    Despite reporting stronger-than-expected profits, Apple, the most influential stock on Wall Street, fell 0.5%. Analysts said investors were likely disappointed with Apple’s revenue forecast for the last three months of 2023.

    A barrel of benchmark U.S. oil rose 46 cents to $80.97 in electronic trading on the New York Mercantile Exchange. It fell $1.95 to $80.51 per barrel Friday. Brent crude, the international standard, gained 36 cents to $85.25 per barrel.

    In currency trading, the U.S. dollar rose to 149.58 Japanese yen from 149.37 yen. The euro cost $1.0739, up from $1.0728.

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  • Stock market today: Wall Street rallies toward its best week of 2023 on hopes for halt to rate hikes

    Stock market today: Wall Street rallies toward its best week of 2023 on hopes for halt to rate hikes

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    NEW YORK — Wall Street is piling more gains onto its rally from the day before on hopes the Federal Reserve may finally be done with its market-crunching hikes to interest rates.

    The S&P 500 was 1.4% higher in midday trading Thursday and on track for a fourth straight winning day. It’s already up 4.4% this week and on pace for its best in nearly a year.

    The Dow Jones Industrial Average was up 365 points, or 1.1%, as of noon Eastern time, and the Nasdaq composite was 1.3% higher.

    Stocks around the world rallied after the Federal Reserve late Wednesday opted against raising its main interest rate for a second straight meeting. It’s already jacked up rates furiously since early last year in hopes of slowing the economy and hurting financial markets enough to starve high inflation of its fuel.

    More importantly for financial markets, investors also took comments by the Fed’s chair to mean that recent jumps in longer-term Treasury yields were acting like rate-hike substitutes and could obviate the need for more increases by the Fed.

    Longer-term Treasury yields fell as Fed Chair Jerome Powell spoke following the central bank’s decision, and they kept sinking Thursday. The yield on the 10-year Treasury dropped to 4.67% from 4.74% late Wednesday and from more than 5% last week, when it reached its highest level since 2007.

    Lower yields provide oxygen across financial markets. They make it incrementally easier for businesses and households to get loans, encourage investors to consider paying higher prices for stocks and reduce the pressure on the entire financial system.

    Of course, the drop in yields could end up shooting Wall Street in the foot later. Powell said that a run higher in Treasury yields could displace the need for another rate hike if it is “persistent.” If the 10-year yield ends up quickly dropping back to where it was in the summer, that could make the Federal Reserve more nervous.

    “That was an interesting nuance, but I don’t think it overrides the majority of his comments that suggested it’s more likely than not that the Fed is done hiking,” said Lon Erickson, portfolio manager at Thornburg Investment Management.

    Hopes for no more Fed hikes had financial markets around the world ebullient. Stock indexes jumped 1.8% in South Korea, 1.1% in Japan, 1.8% in Germany and 2.2% in France.

    In London, the FTSE 100 climbed 1.5% after the Bank of England left its main interest alone, like the Fed.

    Some reports on the U.S. economy also showed a bit of momentum that could help ease the pressure on high inflation. Fed officials are carefully watching such data as they hope to get comfortable rates are high enough to sustainably drive inflation back down to their 2% target.

    One preliminary report Thursday said U.S. businesses produced more stuff during the summer than the number of hours worked increased, indicating they got more efficient. Such gains in productivity could ease pressure on inflation while helping the economy to grow.

    Productivity looks like it may be set for a continued uptrend over the next two years, aided in part by adoption of artificial-intelligence technology, according to economists at Deutsche Bank.

    A separate report, meanwhile, said slightly more U.S. workers applied for unemployment benefits last week than expected. That’s bad news for those workers, but a cooler job market could also take pressure off inflation.

    Big U.S. companies meanwhile continue to report better profits for the summer than analysts expected.

    Eli Lilly was one of the strongest forces pushing the S&P 500 upward after it reported stronger profit and revenue than analysts estimated. Its stock rose 4.1% after it said it benefited from soaring sales for its blockbuster diabetes treatment, Mounjaro, which is widely used for weight loss.

    Starbucks jumped 10.1% after reporting stronger profit and revenue for the latest quarter than Wall Street forecast. It benefited from customers buying more and paying higher prices.

    Also on Thursday, Cedar Fair and Six Flags said they’ll merge to create an expansive amusement park operator with operations spread across 17 U.S. states and three countries. Their stocks were mixed, but both remain up more than 4% this week after rumors of the deal spread.

    On the losing end of Wall Street was Moderna, which sank 8.3% after reporting a much worse loss for the latest quarter than analysts expected.

    More swings could be coming for Wall Street. After trading closes for the day, Apple will report results for its latest quarter. As the most valuable U.S. stock, its movements carry extra weight on the S&P 500 and other indexes.

    Earlier this reporting season, some of the market’s other most influential Big Tech stocks dragged on indexes after their results failed to live up to very high expectations.

    On Friday morning will come the latest monthly update on the U.S. jobs market. Economists expect it to show a slowdown in hiring for October.

    A remarkably resilient job market has helped to keep the economy out of a long-predicted recession, but the fear at the Fed is too much strength there could push upward on inflation.

    ___

    AP Business Writers Yuri Kageyama and Matt Ott contributed.

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  • Stock market today: Wall Street drifts higher as it counts down to a decision by the Federal Reserve

    Stock market today: Wall Street drifts higher as it counts down to a decision by the Federal Reserve

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    NEW YORK — U.S. stocks are drifting higher Wednesday as Wall Street waits to hear what will come out of the Federal Reserve’s latest announcement on interest rates.

    The S&P 500 was up 0.4% in morning trading, coming off its third straight losing month largely because of higher yields in the bond market. The Dow Jones Industrial Average was up 97 points, or 0.2%, as of 10:15 a.m. Eastern time, and the Nasdaq composite was 0.4% higher.

    The Fed is wrapping up its latest meeting on interest-rate policy in the afternoon, and the overwhelming expectation is for it to hold its main interest rate steady for the second straight time. It’s already yanked the overnight rate above 5.25% from nearly zero early last year to its highest level since 2001. The big question is whether the Fed will give any hints about how long it will keep the rate high before cutting it to provide financial markets more oxygen.

    Longer-term Treasury yields have been rising rapidly since the spring and catching up with the Fed’s overnight rate. They’ve rallied as the U.S. economy has remained remarkably resilient and the central bank has warned it may keep its short-term rate high for a long time. Worries about the U.S. government’s big borrowing needs have also pushed up yields, and the U.S. Treasury on Wednesday gave some details about how much it will increase its borrowing.

    The yield on the 10-year Treasury dipped to 4.79% from 4.92% late Tuesday. Last month, it topped 5% to reach its highest level since 2007, up from less than 3.50% during the spring.

    High yields knock down prices for stocks and other investments while making borrowing more expensive for nearly everyone. That slows the economy and puts pressure on the entire financial system.

    The Fed has been saying it plans to keep rates high because it wants to ensure high inflation is on its way back down to its 2% target. Strong reports on the economy recently have raised worries about upward pressure on inflation, even if they’re also keeping a long-predicted recession at bay.

    Yields eased following a mixed set of reports on the economy Wednesday.

    One from ADP suggested hiring accelerated last month by employers outside the government, though not by as much as economists expected. A more comprehensive jobs report from the U.S. government will arrive on Friday.

    A separate report said U.S. employers were advertising slightly more job openings at the end of September than economists expected. The Fed has been hoping for softening there, which could take pressure off inflation without requiring many layoffs across the economy.

    A third report, meanwhile, said U.S. manufacturing contracted by more last month than economists had forecast. Manufacturing has been one of the U.S. economy’s hardest-hit areas.

    In the background, big U.S. companies continue to report stronger profits for the summer than analysts expected, though that hasn’t been enough in recent weeks to offset worries about higher yields.

    DuPont fell 4.7% despite reporting stronger profit for the latest quarter than analysts had forecast. The chemical company gave some financial forecasts for the full year of 2023 that fell short of analysts’ expectations as it sees weakness in China and other challenges.

    Estee Lauder also pointed to slower growth in China, among other factors, when it cut some of its financial forecasts for its fiscal year. it also reported weaker revenue for the latest quarter than expected, and its stock tumbled 20.1%.

    On the winning side of Wall Street, chipmaker Advanced Micro Devices rose 4.5% after it reported stronger profit and revenue for the latest quarter than forecast. Its revenue forecast for the end of 2023 disappointed some analysts, but it also pointed to growth in 2024 coming from the artificial-intelligence boom.

    An AI-fueled bonanza earlier this year helped fuel big gains for some Big Tech stocks, with expectations high that the technology could usher in big profits.

    In the oil market, prices continue to swing on uncertainty about whether the latest Israel-Hamas war will affect the production and movement of crude. A barrel of benchmark U.S. oil rose 2.4% to $83.00, while Brent crude gained 1.9% to $86.67.

    Oil prices recently had dropped back below where they were before the Oct. 7 attack on Israel by Hamas. The region is not home to major oil production, but the fear is that the conflict could draw in Iran or other big oil-producing nations.

    A barrel of U.S. oil had jumped from less than $70 in the summer to more than $93 shortly before the war.

    In stock markets abroad, indexes were mostly higher across Europe and Asia.

    ___

    AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

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  • Stock market today: Asian shares track Wall Street gains ahead of Fed decision on interest rates

    Stock market today: Asian shares track Wall Street gains ahead of Fed decision on interest rates

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    BANGKOK — Asian shares were mostly higher Wednesday after Wall Street advanced to claim back some of the ground it gave up in another losing month.

    Investors are awaiting a decision later Wednesday by the Federal Reserve on interest rates and updates on the state of the U.S. economy. The overwhelming expectation is that the Fed will keep its overnight interest rate steady. The bigger question is how long it will keep that main rate high.

    Tokyo’s Nikkei 225 index added 2.4% to 31,601.65 a day after the Bank of Japan held back from any major changes to its near-zero interest rate policy, though it adjusted its controls on government bond yields.

    The dollar weakened against the Japanese yen, trading at 151.28 yen. It jumped on Tuesday after the Japanese central bank’s decision.

    In Hong Kong, the Hang Seng edged less than 0.1% higher, to 17,126.70. The Shanghai Composite index gained 0.1% to 3,023.08.

    South Korea’s Kospi advanced 1% to 2,301.56 and the S&P/ASX 200 rose 0.9% to 6,838.30.

    European futures were higher early Wednesday. Inflation that has been wearing on European consumers fell sharply to 2.9% in October, its lowest in more than two years as fuel prices fell and rapid interest rate hikes from the European Central Bank took hold. But that encouraging news was balanced by worrisome official figures showing economic output in the 20 countries that use the euro shrank by 0.1% in the July-September quarter.

    Tuesday on Wall Street, the S&P 500 gained 0.6% to 4,193.80. The Dow Jones Industrial Average added 0.4% to 33,052.87 and the Nasdaq composite climbed 0.5%, to 12,851.24.

    More than 80% of the stocks in the S&P 500 strengthened. It closed October with a loss of 2.2% for the month. That’s its third straight monthly drop, the longest losing streak since the COVID-19 pandemic froze the global economy at the start of 2020.

    Pinterest jumped 19% after reporting stronger profit for the latest quarter than analysts expected. Arista Networks was one of the strongest forces pushing the S&P 500 upward, climbing 14% after also reporting stronger profit for the summer than Wall Street had forecast.

    Most big U.S. companies have reported stronger profit for the summer than expected, and Caterpillar also joined them. But the heavy machinery maker’s stock sank 6.7% after analysts focused on a slowdown in orders and growing inventories at dealers.

    VF Corp., the company behind Vans, Timberlands and other brands, dropped 14% after it reported weaker profit than expected. It also slashed its dividend 70% and withdrew its forecasts for revenue and profit this fiscal year.

    Higher bond yields have taken a toll, since they knock down prices for stocks and other investments, while slowing the overall economy and adding pressure on the entire financial system. The 10-year Treasury yield, which is the centerpiece of the bond market, has jumped from less than 3.50% during the spring to more than 5% recently, touching its highest level since 2007.

    The 10-year Treasury yield ticked higher to 4.91% early Wednesday from 4.89% late Monday.

    The Fed has already pulled its main overnight interest rate above 5.25% to its highest level since 2001. It’s been saying it will make upcoming moves based on what data say about inflation and the job market, where the worry is that too-strong growth could give inflation more fuel.

    Reports on the economy Tuesday came in mixed. One said that growth in wages and benefits for U.S. workers slowed during the summer, compared with year-earlier levels, but not by as much as economists expected.

    Another report said that confidence among U.S. consumers weakened last month, but not by as much as economists expected. Strong consumer spending has helped the economy avoid recession, but it could also fan inflation. That’s why the Fed is nervous about too strong growth in wages, as workers fight for higher pay amid high inflation.

    In other trading, U.S. benchmark crude oil advanced 48 cents to $81.50 a barrel. It lost 29 cents on Tuesday to $81.02. Brent crude, the international standard, picked up 65 cents to $85.67 a barrel.

    The euro fell to $1.0570 from $1.0575.

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