US, European stocks push higher as inflation eases

NEW YORK -- Wall Street rebounded Friday and eurozone stocks edged higher on data showing easing inflation, while the yen yo-yoed after Japan's central bank tweaked its ultra-loose monetary policy.

The Dow added 0.5 percent, while the broader S&P 500 climbed 1.0 percent and the tech-heavy Nasdaq Composite Index jumped 1.9 percent.

This came after data showed that the Federal Reserve's preferred gauge of inflation, the personal consumption expenditures price index, rose 3.0 percent last month from June 2022.

The figure was down from a 3.8 percent rise in May, extending a downward trend.

The indicator is still above the central bank's two percent target over the longer run, "yet the Fed is bound to take some solace from the recognition that it continues to move in the right direction," said Briefing.com analyst Patrick O'Hare.

Stock markets have enjoyed a broadly positive week on hopes the US Fed and other central banks were at or close to the end of more than a year of monetary tightening as inflation comes down.

The Fed on Wednesday said that future rate decisions would be determined by data, which was welcomed by investors who saw recent indicators -- pointing to an easing of price pressure and softening of the labor market -- as giving it room to hold off more increases.

And on Thursday, European Central Bank boss Christine Lagarde left open the possibility of a pause in rate hikes.

Paris stocks edged 0.2 percent higher on Friday after data showed the French economy grew a forecast-busting 0.5 percent in the second quarter, while inflation eased in July.

Frankfurt added 0.4 percent, setting another record close, on slowing inflation despite data showing the German economy stagnated in the second quarter.

"With price pressures in Germany also slowing more than expected in July there is a sense that this week's rate hike by the ECB may well have been its last, with a number of ECB policymakers expressing increasing caution over the growth outlook," said analyst Michael Hewson at CMC Markets.

After a closely-watched meeting, the Bank of Japan (BoJ) said it would allow "greater flexibility" in government bond markets, having allowed them to move in a tight band in a process known as yields curve control.

But on Friday it said that while it would maintain that range, its upper and lower limits would be used as references, rather than being rigid.

The move means rates in Japan would be allowed to rise more than previously. The yen swung around after the announcement, but was lower against both the dollar and the euro near 2100 GMT.

The currency has been hammered for more than a year as the BoJ refused to shift from its loose policy, even as central banks around the world pushed up interest rates to fight surging inflation.

However, with prices picking up at home and the yen struggling, pressure has been growing on the bank to change tack.

The Nikkei 225 index sank more than two percent on the prospect of higher borrowing costs before paring the losses by the close.

"Market reaction has been very choppy as it is not a straightforward decision to digest," said Khoon Goh, of Australia and New Zealand Banking Group.

Asian markets closed out the week mixed. Hong Kong and Shanghai were boosted by hopes for further measures by Beijing to boost the struggling Chinese economy.

- Key figures around 2050 GMT -

New York - Dow: UP 0.5 percent at 35,459.29 (close)

New York - S&P 500: UP 1.0 percent at 4,582.23 (close)

New York - Nasdaq: UP 1.9 percent at 14,316.66 (close)

London - FTSE 100: FLAT at 7,694.27 (close)

Frankfurt - DAX: UP 0.4 percent at 16,469.75 (close)

Paris - CAC 40: UP 0.2 percent at 7,476.47 (close)

EURO STOXX 50: UP 0.4 percent at 4,466.50 (close)

Tokyo - Nikkei 225: DOWN 0.4 percent at 32,759.23 (close)

Hong Kong - Hang Seng Index: UP 1.4 percent at 19,916.56 (close)

Shanghai - Composite: UP 1.8 percent at 3,275.93 (close)

Dollar/yen: UP at 141.17 yen from 139.48 yen on Thursday

Euro/dollar: UP at $1.1020 from $1.0979

Pound/dollar: UP at $1.2851 from $1.2796

Euro/pound: DOWN at 85.72 from 85.80 pence

West Texas Intermediate: UP 0.6 percent at $80.58 per barrel

Brent North Sea crude: UP 0.9 percent at $84.99 per barrel

Agence France-Presse

US stocks edge up after dovish Fed minutes

NEW YORK - Wall Street stocks edged higher on Wednesday after Federal Reserve minutes further signaled the US central bank's dovish posture on monetary policy.

The Dow Jones Industrial Average added 0.2 percent at 25,954.44.

The broad-based S&P 500 also gained 0.2 percent to 2,784.70, while the tech-rich Nasdaq Composite Index edged up less than 0.1 percent to 7,489.07.

The Fed minutes lent color to the central bank's decision of January 30 to not raise interest rates and hinted at caution towards further tightening, saying US growth would "step down" from last year's rapid pace.

"Anyone thinking maybe the Fed did not intend to send the message Powell delivered at the press conference can stop wondering," said FTN Financial's Chris Low. "The Fed really is on long-term hold and the next policy move really could be a cut."

US stocks rose just after the minutes were released at 1900 GMT but pulled back after that around the same time President Donald Trump said he could impose tariffs on European auto imports if there was no new trade deal with the EU.

Investors are also eyeing key trade talks between the Trump administration and Chinese officials.

"Unless we have an absolute disaster, like a recession or Trump calling off the trade talks, the stock market is going to go higher," said LBBW's Karl Haeling.

"There is a lot of cash out there."

CVS Health dived 8.1 percent after reporting an annual loss following a $6.1 billion write-down of its 2015 Omnicare, which provides pharmacy services to long-term care facilities.

American Airlines, United Continental and Delta Air Lines were all down about one percent after smaller rival Southwest Airlines said the US government shutdown dented business more than previously thought.

Southwest now expects a negative revenue hit of $60 million, up from the previous projection of $10 to $15 million. Shares of Southwest slumped 5.7 percent.

source: news.abs-cbn.com

US stocks winning streak ends amid angst over trade

NEW YORK - Wall Street's 4-session winning streak ended with a thud on Tuesday amid revived worries over US-China trade relations and a sense the January rally is fading.

The Dow Jones Industrial Average dropped finished down 1.2 percent at 24,404.48.

The broad-based S&P 500 dropped 1.4 percent to 2,632.90, while the tech-rich Nasdaq Composite Index tumbled 1.9 percent to 7,020.36.

Stocks were in the red the entire session, a shift from the trend since late December, when investors loaded up on equities after a sell-off earlier that month.

But many analysts now feel the market could be primed for another pullback after four weeks of nearly unbroken gains.

Wall Street had started Tuesday in a gloomy mood a day after the International Monetary Fund had trimmed its global growth forecasts, citing US-China trade uncertainties, Brexit and other factors.

Adding to that unease on Tuesday were afternoon reports in The Financial Times and CNBC that the United States had rejected Beijing's offer to hold a preparatory meeting in Washington ahead of next week's high-level trade talks.

The White House denied the report shortly before the closing bell, lifting stocks a bit but not enough to push them into positive territory.

Among individual companies, Johnson & Johnson dropped 1.4 percent after projecting 2019 sales and profits below analyst expectations. The company, which is embroiled in lawsuits alleging cancer links to its talcum powder, reported a jump in litigation costs.

Aluminum parts company Arconic sank 16 percent after it ended plans to potentially sell itself. The company had reportedly been in talks to be acquired by Apollo Global Management for more than $10 billion.

EBay surged 6.1 percent amid speculation it could break up as it faces pressure from shareholders. 

Activist fund Elliott Management, which owns four percent of the company, released a letter calling for an overhaul of the company's operations and "substantial" shareholder payouts.

source: news.abs-cbn.com

Wall Street roars back to life in best session in 9 years

NEW YORK - Wall Street stocks roared back to life on Wednesday, shaking off 4 straight routs following strong retail sales data and White House reassurances that Fed Chair Jerome Powell won't be fired.

The Dow Jones Industrial Average finished up nearly 1,100 points, or about 5 percent, at 22,878.45. 

The broad-based S&P 500 also surged 5 percent to 2,467.70, while the tech-rich Nasdaq Composite Index advanced 5.8 percent to 6,554.36.

The US gains were the biggest for a single session on Wall Street in 9 years, a surge analysts attributed in part to technical factors after days of selling.

"It's coming off of oversold conditions and it was frankly due for a bounce," said Matt Miskin, market strategist at John Hancock Investments.

"Sentiment can be fickle in times like these, so it's important to not get whipsawed."

Still, the session was not without its shaky moments. After opening solidly higher, the Dow briefly sank into the red in mid-morning before recovering and gathering steam throughout the day. 

Earlier, Tokyo closed higher on Wednesday, logging its first positive finish in 6 sessions. Chinese stocks closed slightly lower, while Seoul also dropped.

Financial markets in Australia, Hong Kong were closed for a public holiday, along with bourses in London, Paris and Frankfurt.

MORE WEAKNESS AHEAD? 

Many investors have been unnerved by a variety of factors, including the partial US government shutdown, the US-China trade war and Trump's ongoing criticism of Fed Chair Powell.

The sense of bearishness among investors is "just huge," said Karl Haeling of LBBW.

"From a tactical standpoint, you can expect a reflex rally," said Canaccord Genuity equity strategist Tony Dwyer in a note released ahead of Wednesday's session. "But it is hard to find an extreme oversold low that is not retested."

Yet some analysts have argued that the stock market's weakness in December has been disproportionate to economic conditions at a time when unemployment is low and growth is still solid.

"Our judgment is that the US economy remains solid at the moment," though investors need to pay attention to the possible impact of US trade rows with other countries on financial markets and business outlooks, said a report by Norio Miyagawa, senior economist at Mizuho Securities.

"As financial markets regain their calm, we expect US stocks and the dollar will track higher," he said.

Data from Mastercard SpendingPulse showed US holiday sales increased 5.1 percent this holiday season to more than $850 billion, the biggest growth in the last six years.

White House economic adviser Kevin Hassett sought to reassure on Powell's prospects, telling ABC News the Fed chief is "100 percent" safe. The remarks followed weekend media reports that US President Donald Trump has discussed firing Powell.

Analysts also took heart from a nearly 9 percent jump in US oil prices, the biggest in more than two years and another bounce back following recent weakness in petroleum markets. 

Retailers were especially strong, with Amazon soaring 9.5 percent after declaring that its notched new records in holiday sales, fueled by "tens of millions" of new subscriptions or free trials of its Prime service.

Petroleum-linked shares also had a good session, with Chevron winning 6.3 percent and Halliburton 5.1 percent following the rally in oil prices.

KEY FIGURES AROUND 6 A.M. MANILA TIME 

New York - Dow: UP 5.0 percent at 22,878.45 (close)

New York - S&P 500: UP 5.0 percent at 2,467.70 (close)

New York - Nasdaq: UP 5.8 percent at 6,554.36 (close)

Tokyo - Nikkei: - UP 0.9 percent at 19,327.06 (close)

Hong Kong: CLOSED

Shanghai - composite: DOWN 0.3 percent at 2,498.29 (close)

Paris, London, Frankfurt: CLOSED 

Euro/dollar: DOWN at $1.1352 from $1.1392 at 2200 GMT Tuesday

Dollar/yen: UP at 111.33 from 110.31 

Pound/dollar: DOWN at $1.2637 from $1.2675

Oil - Brent Crude: UP $3.98 cents at $54.45 per barrel

Oil - West Texas Intermediate: UP $3.69 at $46.22 per barrel

source: news.abs-cbn.com

Global stock markets plunge as tech fears mount

NEW YORK -- Global stocks plunged Tuesday as a sharp downward trend in the technology sector hit valuations hard and the Dow gave up all its gains for the year.

In Europe and Asia, there was much talk about the surprise arrest of Carlos Ghosn, boss of the Renault-Nissan-Mitsubishi alliance, and stocks in the three companies plunged, while Wall Street suffered a second big decline.

Analysts at Capital Economics forecast the tech sector would continue to underperform in the coming quarters because of expected economic weakness in both the United States and China.

"Given the highly-cyclical nature of the IT sector, we have been arguing for a while that growth in its earnings would be hit especially hard in these circumstances," they said.

In New York, the Dow shed more than 550 points or 2.2 percent to 24,465.54.

The S&P 500 also slid into the red for the year, while the tech-rich Nasdaq Composite Index clung to a modest gain for all of 2018.

"Today was again a big sell-off," said JJ Kinahan, chief market strategist at TD Ameritrade. "Investors are repricing stocks."

Besides technology, US sectors with bruising declines included petroleum, following a big dip in oil prices, and retail, after a series of mixed earnings reports just ahead of the key holiday shopping season.

Analysts have blamed the weakness on worries about slowing global growth exacerbated by a series of Federal Reserve interest rate hikes and the burgeoning US-China trade dispute. 

Some market watchers have said the fall has been exacerbated by light trading volumes this week ahead of Thursday's Thanksgiving holidays when markets will be closed.

President Donald Trump reentered the central bank fray on Tuesday, calling on the Fed to lower interest rates.

"We have much more of a Fed problem than a problem with anyone else," Trump told reporters, the latest sign of the US president's indifference to criticism that his comments on monetary policy help undermine central bank independence. 

GHOSN WEIGHS ON AUTOMAKERS

In Asia, Nissan lost 5.5 percent and Mitsubishi sank 6.9 percent as they prepared to sack Ghosn after it emerged he had been taken into custody as detectives looked into claims he underreported his income for years.

Ghosn has long been a major player in the car industry and is credited with resurrecting the once-troubled Nissan, which he allied with Mitsubishi and France's Renault.

He heads the Renault-Nissan-Mitsubishi alliance and serves as CEO of Renault.

Renault said Tuesday Ghosn would remain chief executive despite his arrest. But the French company appointed Chief Operating Officer Thierry Bollore as deputy CEO to ensure day-to-day management while Ghosn is "temporarily incapacitated." 

Renault's share price closed 1.2 percent lower, extending Monday's eight percent dive.

"The market doesn't consider the share's fall to be a buying opportunity," said Cedric Besson, a portfolio manager at Gaspal Gestion.

Shares in Deutsche Bank dropped nearly 5 percent in Frankfurt amid fears that the German banking giant is being drawn into a money laundering scandal dogging Danish peer Danske Bank, dealers said.

Investors suspect that a former high-ranking Danske Bank manager meant Deutsche Bank when he told a parliamentary commission in Copenhagen that nearly $150 billion of doubtful transactions had been handled by the US subsidiary of "a big European bank". 

KEY FIGURES AROUND 2200 GMT (6 a.m. Wednesday in Manila)

New York - Dow: DOWN 2.2 percent at 24,465.64 (close)

New York - S&P 500: DOWN 1.8 percent at 2,641.89 (close)

New York - Nasdaq: DOWN 1.7 percent at 6,908.82 (close)

London - FTSE 100: DOWN 0.8 percent at 6,947.92 (close)

Frankfurt - DAX 30: DOWN 1.6 percent at 11,066.41 (close)

Paris - CAC 40: DOWN 1.2 percent at 4,924.89 (close)

EURO STOXX 50: DOWN 1.4 percent at 3,116.07 (close)

Tokyo - Nikkei 225: DOWN 1.1 percent at 21,583.12 (close)

Hong Kong - Hang Seng: DOWN 2.0 percent at 25,840.34 (close)

Shanghai - Composite: DOWN 2.1 percent at 2,645.85 (close)

Euro/dollar: DOWN at $1.1370 from $1.1454 at 2200 GMT

Pound/dollar: DOWN at $1.2787 from $1.2854

Dollar/yen: UP at 112.75 yen from 112.55 yen

Oil - Brent Crude: DOWN $4.24 at $62.55 per barrel

Oil - West Texas Intermediate: DOWN $3.77 at $53.43 per barrel

source: news.abs-cbn.com

US stocks fall amid tech weakness

NEW YORK - Wall Street stocks finished lower on Tuesday with technology and transportation shares sagging in light-volume trading ahead of the Independence Day holiday.

The Dow Jones Industrial Average fell 0.5 percent to 24,174.82.

The broad-based S&P 500 shed 0.5 percent to 2,713.22, while the tech-rich Nasdaq Composite Index tumbled 0.9 percent to 7,502.67.

Wall Street stocks had opened mostly higher, with petroleum-linked shares achieving solid gains as US oil prices topped $75 a barrel.

But analysts said sentiment shifted after oil prices retreated from that level at mid-session. Market swings were accentuated by low trading volumes, with US markets closing early on Tuesday for the July 4th holiday.

Technology shares, which had outperformed the rest of the broader market on Monday, suffered a weak session. 

Facebook tumbled 2.4 percent after confirming it faces investigations by the Securities and Exchange Commission and the Federal Bureau of Investigation on its release of consumer data to now-defunct political consultancy Cambridge Analytica.

Tesla Motors was another weak tech stock, dropping 7.2 percent a day after the company reported meeting a key production target for its Model 3 sedan.

Other large technology companies, including Apple, Google parent Alphabet and Microsoft, also fell.

American Airlines, Delta Air Lines and United Continental all dropped at least one percent following a downgrade by Deutsche Bank.

General Motors fell 1.2 percent despite reporting a 4.6 percent increase in second-quarter US sales.

Ford fell 1.0 percent after reporting a 1.2 percent increase in June US sales but a 1.8 percent drop in sales for the first half of the year.

source: news.abs-cbn.com

US stocks mostly rise as tax cut gains in Congress

NEW YORK - Wall Street stocks finished mostly higher Thursday following generally solid earnings and congressional progress on President Donald Trump's much-anticipated tax cut.

But health and pharma shares were under pressure, with drug distributors stumbling on worries about Trump's crackdown on opioids and pharma shares declining after biotech company Celgene slashed its long-term targets.

The Dow Jones Industrial Average gained 0.3 percent to 23,400.86.

The broad-based S&P 500 rose 0.1 percent to 2,560.40, while the tech-rich Nasdaq Composite Index dipped 0.1 percent to 6,556.77.

Companies that rose after earnings included Ford, up 1.9 percent, and UPS, which advanced 0.7 percent. Solid earnings have been a key factor in a run of Wall Street records over the last month.

Stocks have also been lifted by congressional action on the proposed tax cut, which Thursday passed a clear hurdle when the House approved a budget resolution that opens the way for $1.5 trillion in tax cuts.

"Good the budget got out of the House," said Art Hogan, chief market strategist at Wunderlich Securities. "It's the next step in tax reform."

But health was the laggard among S&P sectors, with shares of drug distribution companies diving after Trump warned the Justice Department could bring lawsuits against "bad actors" responsible for the crisis.

Cardinal Health, which was spotlighted in a recent "60 Minutes" report on the opioid crisis, fell 4.2 percent, while AmerisourceBergen dropped 3.5 percent and McKesson 5.2 percent.

Celgene plunged 16.4 percent after it cut its long-term sales and profit targets. Pfizer and Mylan both lost 1.2 percent and Biogen shed 2.2 percent.

source: news.abs-cbn.com

US stocks sink as oil tumbles to fresh multi-year low

US stocks fell again Tuesday on another stormy day for global financial markets as oil prices plummeted to a fresh multi-year low.

The Dow Jones Industrial Average dropped 130.01 points (0.74 percent) to 17,371.64.

The broad-based S&P 500 tumbled 17.97 (0.89 percent) to 2,002.61, after spending a good chunk of the session below 2,000. The tech-rich Nasdaq Composite Index sank 59.84 (1.29 percent) to 4,592.74.

US oil prices tumbled to a fresh 5.5-year low of $47.93 a barrel. Other worries pertained to the drop in US Treasury bond yields and the eurozone.

"The market doesn't like uncertainty and the volatility in oil and the volatility in interest rates have certainly created uncertainty," said David Levy, portfolio manager at Kenjol Capital Management.

"The situation in Europe is also very uncertain and we're lacking a positive catalyst as of today."

Banking stocks fell. Dow member JPMorgan Chase lost 2.6 percent, Citigroup tumbled 3.5 percent and Wells Fargo shed 2.1 percent.

Petroleum-linked stocks continued to drop. ConocoPhillips slumped 4.1 percent while oil services giant Schlumberger gave up 2.0 percent.

Microblog company Twitter surged 6.5 percent on speculation that activist investor Carl Icahn could buy a stake in the company.

Michael Kors, a retailer of handbags and clothing, tumbled 8.4 percent following a downgrade by Credit Suisse. The note cited "a dramatic ramp in promotional activity seen across the retail landscape" for Kors handbags, which account for 80 percent of salse.

Coach, which also sells handbags among other upscale accessories, fell 1.2 percent after it announced it will buy Stuart Weitzman Holdings, which makes women's luxury footwear, in a deal worth up to $574 million.

Bond prices rose sharply.

The yield on the 10-year US Treasury fell to 1.94 percent from 2.04 percent Monday, dipping below 2.0 percent fro the first time since October. The yield on the 30-year bond declined to 2.50 percent from 2.60 percent. Bond prices and yields move inversely.

source: www.abs-cbnnews.com