Connect with us

Stock Markets

Stocks up as commodity slide offers a salve for inflation fears

Published

on


© Reuters. FILE PHOTO: Men wearing protective masks amid the coronavirus disease (COVID-19) outbreak, use mobile phones in front of an electronic board displaying Japan’s Nikkei index outside a brokerage in Tokyo, Japan June 16, 2022. REUTERS/Kim Kyung-Hoon

By Tom Westbrook

SINGAPORE (Reuters) – Stocks and bonds were both headed for their first weekly gain in a month on Friday as investors wagered on central banks bringing inflation to heel, though growth fears dragged on commodities.

Copper, a bellwether for economic output with its wide range of industrial and construction uses, slid 3% in Shanghai and is down more than 7% for the week – its sharpest weekly fall since the pandemic-driven financial markets meltdown in March 2020.

Oil also fell overnight, and Brent crude futures are down 2% on the week to $110.62 a barrel, while benchmark grain prices sank with Chicago wheat off nearly 9% for the week and at its lowest since March at $9.42 a bushel. [O/R][GRA/]

The price falls have made for some relief in equities since energy and food have been the drivers of inflation. After some heavy recent losses, MSCI’s World equities index is up 2% on the week.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1% on Friday, flattered by short sellers bailing out of Alibaba (NYSE:BABA) – which rose 5% – amid hints that China’s technology crackdown is abating.

Japan’s Nikkei rose 0.8% for a 1.6% weekly gain and S&P 500 futures were flat after the index rose about 1% overnight. The U.S. dollar is hovering just below a two-decade high against a basket of major currencies.

“While market worries about an abrupt slowdown are the culprit behind recent moves lower in raw materials prices, lower commodity prices do feel like they could be just what the doctor ordered for the global economy,” said NatWest markets strategist Brian Daingerfield.

“So much of our hard landing fears relate to concerns that link back to commodity prices.”

Soft data through this week has been to blame.

Gauges of factory activity in Japan, Britain, the euro zone and United States all softened in June, with U.S. producers reporting the first outright drop in new orders in two years in the face of slumping confidence.

Bonds rallied hard on hopes the bets on aggressive rate hikes would have to be curtailed, with German two-year yields down 22 basis points in their biggest drop since 2008. [GVD/EUR]

The benchmark 10-year Treasury yield fell 7 bps overnight and was steady at 3.0944%. [US/]

The U.S. dollar has slipped from recent highs, but not too far as investors remain cautious. It was last fairly steady at $1.0529 per euro and bought 134.79 yen. [FRX/]

The battered yen has steadied this week and drew a little support on Friday from Japanese inflation topping the Bank of Japan’s 2% target for a second straight month, putting some more pressure on its ultra-easy policy stance.

European Central Bank and Federal Reserve speakers will be watched closely later in the day, as will British retail sales data and German business confidence. Beyond that, the main worry is what it all means for company performance.

“Second quarter earnings reports will send shockwaves to the market as the earnings outlook hasn’t deteriorated materially so far, and that will further build concerns of a recession,” said Charu Chanana, market strategist at brokerage Saxo in Singapore.

Stock Markets

Morgan Stanley will cover U.S. employees’ travel for abortion services -source

Published

on


© Reuters. The logo for Morgan Stanley is seen on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 3, 2021. REUTERS/Andrew Kelly

NEW YORK (Reuters) – Morgan Stanley (NYSE:MS) joined other large U.S. banks expanding its healthcare coverage to include travel costs for employees seeking abortion services if they are not locally available, according to a source familiar with the matter.

It is the latest financial company to expand healthcare policies to cover these costs following the Supreme Court’s decision Friday to overturn the 1973 Roe v. Wade precedent that had legalized abortion in the United States. [L1N2YB1AQ]

Continue Reading

Stock Markets

Morgan Stanley Has Continued Conviction on Rockwell Automation’s Capex Cycle

Published

on


© Reuters. Morgan Stanley Has Continued Conviction On Rockwell Automation’s (ROK) Capex Cycle

By Sam Boughedda

Speaking about Rockwell Automation (NYSE:ROK) after a meeting with its management, Morgan Stanley analyst Joshua Pokrzywinski said in a note to clients that they came away with “continued conviction in a generational capex cycle” that they expect to remain resilient despite a slowing macro environment and choppy supply chain.

“We expect orders to remain healthy as other verticals, both consumer and other short-cycle industrial markets, contend with demand destruction from rising rates and persistent inflation,” wrote Pokrzywinski.

The analyst, who has an Overweight rating and trimmed his price target to $260 (from $277) on the stock, added that at the same time, the pace of improvement on supply chains, particularly for semiconductors appears to be “at best a game of inches for ROK.”

As a result, Morgan Stanley is “reducing FY22 estimates, particularly the seasonal ramp in F4Q22 due to supply constraints.”

“Given the magnitude of the sell-off and persistent strength over the next 2-3 years, we see ROK risk/reward as favorable acknowledging consensus is high for the next 2 quarters.”

Rockwell Automation closed Monday’s session just 0.12% higher.

Continue Reading

Stock Markets

U.S. stocks lower at close of trade; Dow Jones Industrial Average down 0.20%

Published

on


© Reuters U.S. stocks lower at close of trade; Dow Jones Industrial Average down 0.20%

Investing.com – U.S. stocks were lower after the close on Monday, as losses in the Consumer Services, Technology and Basic Materials sectors led shares lower.

At the close in NYSE, the Dow Jones Industrial Average declined 0.20%, while the S&P 500 index declined 0.30%, and the NASDAQ Composite index lost 0.72%.

The best performers of the session on the Dow Jones Industrial Average were UnitedHealth Group Incorporated (NYSE:UNH), which rose 2.02% or 10.02 points to trade at 505.66 at the close. Meanwhile, Chevron Corp (NYSE:CVX) added 1.93% or 2.80 points to end at 147.57 and Merck & Company Inc (NYSE:MRK) was up 1.37% or 1.28 points to 94.41 in late trade.

The worst performers of the session were Salesforce.com Inc (NYSE:CRM), which fell 2.48% or 4.61 points to trade at 181.31 at the close. Nike Inc (NYSE:NKE) declined 2.13% or 2.41 points to end at 110.50 and Boeing Co (NYSE:BA) was down 1.99% or 2.81 points to 138.72.

The top performers on the S&P 500 were Valero Energy Corporation (NYSE:VLO) which rose 8.00% to 112.24, Devon Energy Corporation (NYSE:DVN) which was up 7.48% to settle at 57.79 and Hess Corporation (NYSE:HES) which gained 5.18% to close at 106.96.

The worst performers were Etsy Inc (NASDAQ:ETSY) which was down 3.55% to 80.65 in late trade, Electronic Arts Inc (NASDAQ:EA) which lost 3.53% to settle at 125.60 and Autodesk Inc (NASDAQ:ADSK) which was down 3.43% to 185.87 at the close.

The top performers on the NASDAQ Composite were Evofem Biosciences Inc (NASDAQ:EVFM) which rose 187.71% to 1.07, Acutus Medical Inc (NASDAQ:AFIB) which was up 87.59% to settle at 1.01 and Epizyme Inc (NASDAQ:EPZM) which gained 55.14% to close at 1.48.

The worst performers were Powerbridge Technologies Co Ltd (NASDAQ:PBTS) which was down 34.95% to 0.67 in late trade, Borqs Technologies Inc (NASDAQ:BRQS) which lost 24.38% to settle at 2.15 and Enochian Biosciences Inc (NASDAQ:ENOB) which was down 21.92% to 2.60 at the close.

Rising stocks outnumbered declining ones on the New York Stock Exchange by 1738 to 1413 and 116 ended unchanged; on the Nasdaq Stock Exchange, 1948 rose and 1867 declined, while 175 ended unchanged.

Shares in Borqs Technologies Inc (NASDAQ:BRQS) fell to 52-week lows; down 24.38% or 0.69 to 2.15. Shares in Enochian Biosciences Inc (NASDAQ:ENOB) fell to 52-week lows; losing 21.92% or 0.73 to 2.60.

The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was down 1.03% to 26.95.

Gold Futures for August delivery was down 0.38% or 6.95 to $1,823.35 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in August rose 1.92% or 2.07 to hit $109.69 a barrel, while the September Brent oil contract rose 1.80% or 1.96 to trade at $111.06 a barrel.

EUR/USD was unchanged 0.27% to 1.06, while USD/JPY rose 0.22% to 135.46.

The US Dollar Index Futures was down 0.26% at 103.69.

Continue Reading

News

Stock Markets17 mins ago

Morgan Stanley will cover U.S. employees’ travel for abortion services -source

© Reuters. The logo for Morgan Stanley is seen on the trading floor at the New York Stock Exchange (NYSE)...

World18 mins ago

West pledges support for Ukraine as missiles strike shopping centre

6/6 © Reuters. FILE PHOTO: A smoke rises over remains of a building destroyed by a military strike, as Russia’s...

Stock Markets18 mins ago

Morgan Stanley Has Continued Conviction on Rockwell Automation’s Capex Cycle

© Reuters. Morgan Stanley Has Continued Conviction On Rockwell Automation’s (ROK) Capex Cycle By Sam Boughedda Speaking about Rockwell Automation...

Stock Markets18 mins ago

U.S. stocks lower at close of trade; Dow Jones Industrial Average down 0.20%

© Reuters U.S. stocks lower at close of trade; Dow Jones Industrial Average down 0.20% Investing.com – U.S. stocks were...

Stock Markets18 mins ago

Nike quarterly revenue beats on athletic wear demand

© Reuters. FILE PHOTO: People walk past a store of the sporting goods retailer Nike Inc at a shopping complex...

Economy18 mins ago

Wall Street ends down, pulled lower by growth stocks

© Reuters. FILE PHOTO: A trader works on the floor of the New York Stock Exchange (NYSE) in New York...

Stock Markets18 mins ago

Spero Therapeutics Plummets 15% on FDA’s CRL for Tebipenem HBr New Drug Application

© Reuters. Spero Therapeutics (SPRO) Plummets 15% on FDA’s CRL for Tebipenem HBr New Drug Application By Davit Kirakosyan Spero...

Cryptocurrency18 mins ago

SEC Chair Gary Gensler calls Bitcoin a commodity

© Reuters SEC Chair Gary Gensler calls Bitcoin a commodity In an appearance on CNBC’s Squawk Box on Monday, SEC...

Coronavirus18 mins ago

U.S. appeals court vacates federal vaccine mandate pending additional hearing

© Reuters. FILE PHOTO: A resident over 50 years old and immunocompromised receives a second booster shot of the coronavirus...

World18 mins ago

U.S. abortion ruling ignites legal battles over state bans

2/2 © Reuters. FILE PHOTO: Abortion rights campaigners participate in nationwide demonstrations following the leaked Supreme Court opinion suggesting the...

Economy47 mins ago

Albemarle plans major U.S. lithium processing plant

© Reuters. FILE PHOTO: A sign at the approach road leads to Albemarle’s lithium evaporation ponds at its facility in...

Forex47 mins ago

The ‘Big Package’: How Russia was driven to default

© Reuters. FILE PHOTO: European Commission President Ursula von der Leyen arrives for the European Union leaders summit, as EU’s...

World48 mins ago

U.S. Supreme Court abortion ruling ignites new legal battles over state bans

2/2 © Reuters. FILE PHOTO: Abortion rights campaigners participate in nationwide demonstrations following the leaked Supreme Court opinion suggesting the...

Stock Markets48 mins ago

Bankman-Fried’s FTX internally mulling Robinhood deal – Bloomberg News

© Reuters. The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall Street after the company’s...

Economy48 mins ago

Dollar retreats as markets rethink Fed rate bets, eye ECB hikes

© Reuters. FILE PHOTO: U.S. dollar banknotes are displayed in this illustration taken, February 14, 2022. REUTERS/Dado Ruvic By Hannah...

Sports & General48 mins ago

Biden swipes at China with memorandum to combat illegal fishing

© Reuters. U.S. President Joe Biden attends a welcoming ceremony on the first day of the G7 summit at Bavaria’s...

Sports & General48 mins ago

Amtrak train derails in Missouri after hitting truck, injuries reported

(Reuters) -Several cars on an Amtrak train derailed in Mendon, Missouri, on Monday after hitting a dump truck at a...

Stock Markets48 mins ago

FTX Said Exploring Potential Robinhood Acquisition, News Seen as ‘Positive’

FTX Said Exploring Potential Robinhood (HOOD) Acquisition, News Seen as ‘Positive’ By Sam Boughedda FTX, the crypto exchange founded by...

World48 mins ago

At least 13 killed in Russian missile strike on shopping mall, Ukraine says

2/2 © Reuters. Ukraine’s President Volodymyr Zelenskiy attends a working session of G7 leaders via video link, as Russia’s attack...

Commodities1 hour ago

Oil up 2% on Bets G7 Move Versus Russia Will Further Tighten Supply 

© Reuters. By Barani Krishnan Investing.com — Crude markets rallied on Monday on speculation that the predominantly-Western Group of Seven...

Stock Markets1 hour ago

Bankman-Fried’s FTX seeking path to buy Robinhood – Bloomberg News

© Reuters. The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall Street after the company’s...

Stock Markets1 hour ago

Refining Tightness to Persist, Even in a Recession – Piper Sandler

© Reuters. Refining Tightness to Persist, Even in a Recession – Piper Sandler By Sam Boughedda Piper Sandler Senior analyst...

World2 hours ago

U.S. Supreme Court overturns Roe v. Wade, ends constitutional right to abortion

9/9 © Reuters. Demonstrators gather in front of Planned Parenthood after the United States Supreme Court ruled in the Dobbs...

Cryptocurrency2 hours ago

Ethereum liquidity provider XCarnival negotiates return of 50% stolen ETH

Ethereum liquidity provider XCarnival negotiates return of 50% stolen ETH XCarnival, a liquidity provider for the Ethereum ecosystem, recovered 1,467...

Cryptocurrency2 hours ago

Holonus to announce its listing on LBank

© Reuters Holonus to announce its listing on LBank Holonus – Blockchain-based Best Ecosystem Platform for Next Generation Humanity in...

Sports & General2 hours ago

Biden administration signals fight over medication abortion

2/2 © Reuters. FILE PHOTO: Abortion rights protesters demonstrate after the U.S. Supreme Court ruled in the Dobbs v Women’s...

Economy2 hours ago

UK public inflation expectations fall to lowest since January -Citi/YouGov

© Reuters. FILE PHOTO: People shop at market stalls, with skyscrapers of the CIty of London financial district seen behind,...

Stock Markets2 hours ago

Mining firms poised to lead capital raisings in Canada, TSX CEO says

© Reuters. FILE PHOTO: Visitors to the BHP (formerly known as BHP Billiton) booth speak with representatives during the Prospectors...

Sports & General2 hours ago

Biden signs memorandum to combat illegal fishing

© Reuters. U.S. President Joe Biden attends a welcoming ceremony on the first day of the G7 summit at Bavaria’s...

Economy2 hours ago

GE CEO Culp expands role to head aviation unit

© Reuters. FILE PHOTO: General Electric Co. Chief Executive Officer Larry Culp mingles with shareholders at the company’s annual meeting...

Trending