Stock Markets
US Senate takes up $1.2 trillion bill to avoid shutdown, midnight deadline looms
© Reuters. A view of the U.S. Capitol dome in Washington, D.C., U.S., March 21, 2024. REUTERS/Elizabeth Frantz
By David Morgan, Richard Cowan and Makini Brice
WASHINGTON (Reuters) -The Democratic-majority U.S. Senate on Friday was trying to pass a $1.2 trillion government funding bill after House of Representatives passage angered a Republican hardliner in that chamber, who threatened to try to oust Speaker Mike Johnson.
The House’s 286-134 vote sent the measure to the Democratic-majority Senate, which has hours to act ahead of a midnight deadline (0400 GMT Saturday) to prevent parts of the Department of Homeland Security, Internal Revenue Service and Justice Department to Treasury and State departments from closing.
The Senate began a procedural vote on the matter on Friday, while leadership negotiated behind the scenes to bypass some of the chamber’s Byzantine rules and allow for a swifter vote on passage.
The move marks a critical step toward ending a more-than-six-month battle over the scope of Washington’s spending for the fiscal year that began Oct. 1. Ratings agencies have warned that the repeated brinkmanship could hurt the creditworthiness of a federal government that currently has more than $34.6 trillion in debt.
The measure passed the House with 185 Democrats and 101 Republican votes, which led hardline conservative Representative Marjorie Taylor Greene to introduce a measure to oust Republican Johnson.
Johnson himself ascended to that role in October after hardliners furious that his predecessor, Kevin McCarthy, had passed a temporary funding measure over their objections, ousted him as leader.
But Greene said she would not push for an immediate vote.
“I filed a motion to vacate today. But it’s more of a warning than a pink slip,” the Georgia Republican told reporters.
SENATE UP NEXT
Meanwhile, Democratic Senate Majority Leader Chuck Schumer urged his colleagues to move quickly to pass the measure.
“Let’s finish the job today. Let’s avoid even a weekend shutdown. Let’s finish the job of funding the government for the remainder of the fiscal year,” Schumer said. “There is no reason to delay.”
The last partial federal government shutdown occurred during Donald Trump’s presidency, from Dec. 22, 2018 until Jan. 25, 2019. The record-long interruption in government services came as the Republican insisted on money to build a wall along the U.S. border with Mexico and was unable to broker a deal with Democrats.
The current 1,012-page bill provides $886 billion in funding for the Defense Department, including a raise for U.S. troops. It also covers agencies ranging from the Department of Homeland Security, the Internal Revenue Service and the Justice Department, along with the Treasury and State departments.
A separate controversial money matter is boiling in Congress where its leaders, except for Johnson, urgently are calling for final passage of a $95 billion security assistance package approved by the Senate for Ukraine, Israel and Taiwan.
Some Republicans are balking at continuing to back Ukraine in its war against the invading Russian military.
While conservatives succeeded in getting Congress and Democratic President Joe Biden to agree to some fiscal 2024 spending cuts, they hoped for far deeper ones. Their disgruntlement led to the historic October removal of McCarthy. The Republicans’ subsequent political infighting shut down the House for three weeks as Republicans fought over a replacement.
Since then, with the November elections looming, most Republicans have been loath to trigger a government shutdown over spending, although Washington was brought to the brink four times since late September.
A shutdown beginning on Saturday would mean most U.S. Border Patrol and immigration agents would continue to work. But local governments might not receive new aid to shelter migrants.
U.S. soldiers and all federal workers would not get paid until new funding is enacted and national parks would be shuttered. Same situation for the two U.S. astronauts aboard the International Space Station 254 miles (409 km) above Earth.
Meanwhile, the Internal Revenue Service would continue processing tax returns that are due on April 15. It would advise taxpayers of any potential delays in refunds. At the State Department, security at embassies and other foreign offices would remain in force and passports and visas would be issued as long as there were sufficient fees to support such activities. Many other operations would cease.
Stock Markets
SCWO Stock Hits 52-Week Low at $0.71 Amid Market Challenges
In a challenging market environment, shares of 374Water (SCWO) have touched a 52-week low, dipping to $0.71. The company, with a market capitalization of $104 million, maintains a strong liquidity position with a current ratio of 3.81 and more cash than debt on its balance sheet, according to InvestingPro data. The company, which specializes in water treatment solutions, has seen its stock price struggle significantly over the past year, reflecting a broader trend in the sector. Investors have been cautious, as evidenced by the stock’s 1-year change, which shows a substantial decline of 52.96%. InvestingPro analysis indicates the stock is currently in oversold territory, with 18 additional investment insights available to subscribers. This downturn highlights the volatility faced by environmental technology companies and raises concerns about future performance amidst uncertain market conditions. With a beta of -0.51, the stock typically moves opposite to market direction, potentially offering diversification benefits.
In other recent news, 374Water Inc. has secured approximately $12.2 million through a registered direct offering, involving the sale of common stock and warrants. The cleantech company expects the gross proceeds before fees and expenses to be around the $12.2 million mark, with D. Boral (OTC:) Capital LLC serving as the exclusive placement agent for the offering. The capital infusion is scheduled to be finalized by November 18, 2024, pending customary closing conditions.
In further developments, 374Water has initiated operations of its AirSCWO technology at the Iron Bridge Regional Water Reclamation Facility in Orlando. This marks a significant step in commercial biosolids processing, with the technology designed to efficiently process biosolids and PFAS contaminated wastes. The successful integration of the AirSCWO system into the Iron Bridge facility demonstrates the company’s capacity to destroy persistent organic pollutants, including PFAS.
The Florida Department of Environmental Protection supported the installation with a grant under the Bilateral Infrastructure Law emerging contaminant funding. Notably, CEO Chris Gannon highlighted the operational success in Orlando as crucial for showcasing the technology’s capacity to manage municipal, federal, and industrial organic waste streams at scale. The company anticipates additional commitments across the United States, including a deployment to Orange County Sanitation (CA) in 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Stock Markets
Global shares and dollar firm in muted pre-Christmas trade
By Alden Bentley, Samuel Indyk and Rae Wee
NEW YORK/LONDON (Reuters) -Wall Street topped off a global share rally in thin trade on Thursday as markets prepared for early Christmas Eve closes, while the dollar was buoyed by firmer Treasury yields and speculation that the Federal Reserve would slow its easing in 2025.
The was 0.47% higher in late morning trade, the rose 0.73% and the rose 0.99%.
U.S. stock trading wraps up at 1:00 p.m. EDT/1800 GMT, and the bond market closes at 2:00 p.m. Most financial centers around the world are closed on Wednesday for Christmas. The U.S. reopens on Thursday, while many financial centers have a second day off.
“Meagre news and data flow should keep the focus on a more hawkish Fed,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
MSCI’s gauge of stocks across the globe went up more than half a percent. The pan-European index rose 0.18%. 100 rose 0.19% and 40 rose 0.14%. German stocks were closed for the Christmas holiday.
In Asia, Chinese stocks rose after sources told Reuters that Beijing planned to issue a record amount of special treasury bonds next year as it ramps up fiscal stimulus to revive a faltering economy.
The blue-chip index and both ended 1.3% higher. Hong Kong’s advanced 1.1%.
The news came shortly after China’s finance ministry said authorities would ramp up fiscal support for consumption next year by raising pensions and medical insurance subsidies for residents, as well as expanding consumer goods trade-ins.
Still, investors remain cautious on the outlook for the world’s second-largest economy, particularly as it faces the threat of hefty tariffs from U.S. President-elect Donald Trump.
Elsewhere, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.37%.
FED FOCUS
Investors are taking direction from last week’s 25 basis point Fed interest rate cut, its signals on the strength of the economy and its slow progress bringing inflation down to its 2% target. Markets are now pricing in about 35 basis points of easing for 2025, implying one quarter-point rate cut and around a 40% chance of a second.
U.S. Treasury yields pared gains after the Treasury saw solid demand for a $70 billion sale of five-year notes, but remained higher on the day. The two-year Treasury yield, which is sensitive to changes in Fed rate expectations, was up 0.9 bp at 4.359%, while the benchmark 10-year yield rose 2.6 bp to 4.625%, reaching a seven-month high at 4.629%. [US/]
“Like markets, the Fed will need to consider U.S. policies on tariffs and immigration in its inflation and growth outlook. We believe the subtle slowing in the U.S. labor market will still be the Fed’s paramount concern,” said analysts at Citi Wealth.
“While always uncertain, our base case expectation for a 3.75% policy rate is unchanged. It’s a far cry from the 1.7% U.S. policy rate average of the past 20 years.”
The Fed’s cut was the third one this cycle, taking the Fed funds rate to 4.25%-4.5%.
Ahead of Trump’s return to the White House in January, global central banks have urged caution over their rate paths due to uncertainty on how his planned tariffs, lower taxes and immigration curbs might affect policy.
Data on Monday showed U.S. consumer confidence unexpectedly weakened in December as the post-election euphoria fizzled and concerns about future business conditions emerged.
In currencies, the rose 0.14% hovering near a two-year high hit Monday, having climbed more than 2% in December so far.
The euro eased 0.15% to $1.0389, while the yen languished near last week’s five-month low, trading at 157.35 per dollar.
Japan’s Finance Minister Katsunobu Kato on Tuesday reiterated Tokyo’s discomfort with excessive foreign exchange moves and put speculators on notice that authorities are ready to act to stabilise a faltering yen.
rose 0.13% to $2,616.26 an ounce, having risen about 27% this year, heading for its biggest yearly gain since 2010.
rose 1.56% to $70.32 a barrel and rose to $73.73 per barrel, up 1.51% on the day. [O/R]
Stock Markets
Wall Street advances in short Christmas Eve session on megacap gains
By David French
(Reuters) -Wall Street’s main indexes all ended higher on Tuesday, with gains in megacap and growth stocks bolstering benchmarks in a truncated Christmas Eve session.
Both the and the scored four straight sessions of gains. For the Dow, the run follows its 10-session skid earlier this month, its longest losing streak since 1974.
The benchmarks closed higher on the first day of a historically strong period called the “Santa Claus rally.” The on average has gained 1.3% in the last five days of December and first two days of January, according to data from the Stock Trader’s Almanac going back to 1969.
With megacap stocks having outsized influence on markets, their performance is often a key driver of indexes. When coupled with reduced trading volumes and few other catalysts, as many investors take time off for the holidays, this is even more pronounced.
All the so-called Magnificent Seven megacap technology stocks climbed on Tuesday, led by Tesla (NASDAQ:).
The automaker’s rise helped push consumer discretionary shares higher, making them the top gaining sector in the S&P.
Elsewhere, chip manufacturers were also buoyant. Broadcom (NASDAQ:) and Nvidia (NASDAQ:) were up, while Arm Holdings (NASDAQ:) climbed a day after losses from losing a court case.
Growth names rose despite U.S. Treasury interest rates remaining elevated – the benchmark 10-year note yielded around 4.61% on Tuesday. Traditionally, higher debt costs crimp growth stocks.
However, the long-term themes around technology development, including advancements in artificial intelligence, overshadow any near-term moves in Treasuries, said Charlie Ripley, senior investment strategist for Allianz (ETR:) Investment Management.
“This reinforces that view that the sector is going to remain strong, and should be well into the new year,” he said.
According to preliminary data, the S&P 500 gained 64.93 points, or 1.09%, to end at 6,039.00 points, while the Nasdaq Composite gained 264.31 points, or 1.34%, to 20,029.19. The Dow Jones Industrial Average rose 366.75 points, or 0.85%, to 43,273.70.
Stock markets shut at 1:00 p.m. ET on Tuesday and will be closed for Christmas on Wednesday.
After a stellar run to record highs following the November election, which sparked hopes of pro-business policies under U.S. President-elect Donald Trump, Wall Street’s rally hit a bump this month as investors grappled with the prospect of higher interest rates in 2025.
The U.S. Federal Reserve eased borrowing costs for the third time this year last Wednesday, but signaled only two more 25-basis-point reductions next year, down from its September projection of four cuts, as policymakers weigh the possibility of Trump’s policies stoking inflation.
Allianz’s Ripley said the themes which had driven the market higher in the past two months remained intact, and actions by the Fed had not killed the rally.
“Heading into 2025, things are set up with good positioning,” he said, noting factors including economic outlook, consumption in the U.S. and the labor market.
Crypto-related stocks traded higher on Tuesday, including Microstrategy (NASDAQ:), Riot Platforms (NASDAQ:), and MARA Holdings, as the price of bitcoin advanced.
NeueHealth soared after the healthcare provider said New Enterprise Associates, its largest shareholder, and a group of existing investors will take the company private in a $1.3 billion deal.
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