US stocks mostly up as holiday shopping season begins

NEW YORK -- Wall Street stocks mostly climbed to end a shortened trading day on Friday, with investors keeping close watch on consumer spending at the unofficial start of the year-end shopping season.

The Dow Jones Industrial Average rose 0.3 percent to 35,390.15.

The broad-based S&P 500 edged up 0.1 percent to 4,559.34, while the tech-heavy Nasdaq Composite Index ticked down 0.1 percent to 14,250.85.

Markets closed early on "Black Friday," the Friday after the Thanksgiving holiday when retailers often offer major discounts.

The annual sales day, which is followed by the newer "Cyber Monday," marks the start of the holiday shopping season.

"Today's lack of movement can be ascribed to a general lack of trading interest befitting the day after Thanksgiving," said Briefing.com in a note.

Consumers are expected to be increasingly price-conscious this year, still jaded by stubborn inflation and lingering effects from the upheaval of the pandemic.

But "how that ends up impacting retailers' profits remains to be seen" for now, Briefing.com added.

Among major retailers, Walmart shares advanced 0.7 percent while Target was up 0.5 percent.

Amazon shares were flat after it was hit by strikes in Europe, as workers demand better wages and working conditions.

UNI Global Union warned Amazon would face strikes and protests in more than 30 countries around the world, including the United States.

Agence France-Presse

US stocks mostly fall as tech rally peters out

NEW YORK -- A rally in tech shares ran out of steam Tuesday, as US stocks mostly retreated amid worries over higher Treasury bond yields that offset investor appetite to keep buying equities.

European and Asian stocks pushed higher, following up on Monday's session in New York, which saw the tech-focused Nasdaq surge.

The Nasdaq eked out a 0.1 percent gain on Tuesday, but both the Dow and S&P 500 retreated.

"Today it's a sober mindset," said Interactive Brokers strategist Steve Sosnick.

He added that Monday's rally in tech shares was probably "overenthusiastic" in light of rising bond yields.

Stocks have been under pressure in August, most recently due to a spike in Treasury bond yields to multi-year peaks, on expectations that interest rates will stay higher for longer.

Markets are looking ahead to an address on Friday by Federal Reserve Chair Jerome Powell for clues on future monetary policy.

Powell "likely will continue to emphasize the Fed's laser-focus on taming inflation, even with the central bank's benchmark funds rate already at the highest level in 22 years," said a note from Charles Schwab.

There is also still unease among traders about the Chinese economy, with another small cut in interest rates doing little to allay fears of a painful slowdown.

While authorities have pledged a series of measures to get the post-Covid recovery back on track, there has been little detail and they are facing growing calls to unveil more wide-ranging stimulus.

Adding to the problems are fears about the country's property sector. A number of major developers, including Country Garden and Evergrande, are on the ropes with vast debts and struggling to meet interest obligations.

"Policy easing announcements intended to invigorate market confidence have fallen short of their desired impact," said SPI Asset Management's Stephen Innes.

Agence France-Presse

Wall Street bounces from Omicron selloff as Nike, Micron lead gains

Wall Street's main indexes rose more than 1 percent on Tuesday, boosted by Nike and Micron following strong earnings, while beaten-down big technology stocks bounced back from an Omicron-driven rout in the previous session.

The rapidly spreading variant of the coronavirus has rattled stock markets around the world, triggering major sell-offs in the final month of the year due to worries about the strain's impact on a global economic recovery.

Nike Inc rose 6.6 percent, boosting the Dow Jones Industrial Average. It beat quarterly estimates for profit and revenue, and sounded confident of a letup in supply chain problems in its next fiscal year.

Micron Technology Inc, up 9.5 percent, led the advance among chipmakers after it forecast upbeat second-quarter earnings and topped Wall Street expectations for quarterly profit and revenue.

The two companies positive updates helped allay some concerns about broader supply chain constraints in a high inflation environment, which has become a cause for concern for central banks globally.

Ten of the 11 major S&P 500 sectors rose in early trading, while the Philadelphia SE Semiconductor index gained 1.7 percent.

"We got oversold yesterday and we are bouncing back a little bit today," said Dennis Dick, a proprietary trader at Bright Trading LLC in Las Vegas.

"This market is more of a dead cat bounce as opposed to this new bull market that is going to rage into 2022. There are just too many concerns."

Mega-cap growth firms, including Tesla Inc, Microsoft Corp, Apple Inc, Amazon.com Inc , Meta Platforms and Alphabet Inc rose between 0.4 percent and 1.7 percent after taking a beating on Monday.

Investors have taken a more defensive stance this month, with sectors such as consumer staples, real estate and utilities among top gainers.

Most of the defensive plays made little gains on Tuesday.

"It's good to see green going into the next year but if you just take a step back and look at the broader picture you're seeing financial conditions change," said Joshua Chastant, senior investment analyst at GuideStone Capital Management.

"Our base case is that next year is going to have a lot of volatility around it, and it's definitely not going to be business as usual in the markets."

At 12:00 p.m. ET, the Dow Jones Industrial Average was up 461.08 points, or 1.32 percent, at 35,393.24, the S&P 500 was up 49.49 points, or 1.08 percent, at 4,617.51 and the Nasdaq Composite was up 187.12 points, or 1.25 percent, at 15,168.07.

Travel-related stocks, which fell in the previous session on the prospect of tighter curbs, rose on Tuesday. The S&P 1500 Airlines index jumped 5.8 percent and was set for its best day since early December.

General Mills Inc fell 4.2 percent after missing analysts' estimates for quarterly profit.

Advancing issues outnumbered decliners by a 4.46-to-1 ratio on the NYSE and by a 2.96-to-1 ratio on the Nasdaq.

The S&P index recorded nine new 52-week highs and no new low, while the Nasdaq recorded 20 new highs and 67 new lows. (Reporting by Shreyashi Sanyal and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva, Uttaresh.V and Maju Samuel)

-reuters-

Global economy faces 'tornado' as coronavirus sends markets into tailspin

The fast-spreading coronavirus and a plunge in oil prices set off a chain reaction in financial markets on Monday, a self-perpetuating downward cycle that could inflict serious harm on the global economy.

What started last month as unease about a potential economic slowdown in China has evolved into a borderline panic, with the S&P 500 crashing nearly 8 percent on Monday. The mayhem is threatening to roil the underlying global financial system and the abilities of companies large and small to survive a potential economic monsoon — a downward spiral that is fed and intensified by these destructive forces.

The odds of such a storm grew after an unexpected fight between Russia and Saudi Arabia. After failing to reach an agreement about how much oil to produce and sell on international markets, Saudi Arabia announced it would quickly ramp up production.

Oil prices had been falling as investors fretted about a possible recession. On Monday, those prices plummeted more than 20 percent— the sharpest decline since the first Persian Gulf War.

The S&P 500 has tumbled 19 percent during the past few weeks, and Monday was its worst one-day decline in more than a decade. The free fall has vaporized more than $5 trillion in stock market wealth.

Less than 10 minutes after markets opened in the United States on Monday morning, the sell-off became so steep that automatic “circuit breakers” kicked in and halted trading. It was the first time that had happened since the current circuit breakers were set in 2013. The S&P’s 7.6 percent drop came on the 11th anniversary of the start of the current bull market, one of the longest ever. A 20 percent drop from the high point would signal what’s known as a bear market, a marker the S&P 500 has only narrowly avoided for now.

The public health crisis is now threatening to turn into a financial one, which in turn could amplify the virus’ economic fallout.

“There’s panic,” said Dan Krieter, an analyst at BMO Capital Markets. “We’re heading into what looks to be a global recession, including the US.”

Asia shares try to find a floor after COVID 19 triggers free fall
Asia-Pacific economies face $211 billion hit from virus, says S&P
President Donald Trump told reporters at a White House coronavirus briefing on Monday evening that “we are going to take care of and have been taking care of the American public.” He said he would meet with the Senate on Tuesday to discuss a payroll tax cut and help for hourly wage earners.

The downward cycle — there are signs it is underway — might play out like this: As the virus disrupts manufacturing supply chains as well as travel, consumer spending would fall and businesses would falter, and stock prices would plummet. The threat to corporate profits would send investors in search of havens like government bonds, sending those prices up and their yields down, in turn straining the banking industry. Banks would limit financing for businesses, which would cut production or lay off workers to hoard capital.

Already, investors have hustled to safety, shunning corporate bonds and driving up the financing costs for many companies. And as they piled into US government bonds, long-term interest rates fell to historic lows; benchmark 10-year Treasury bonds, whose interest rates until last week had never sunk below 1 percent, were recently yielding half that.

Hoping to forestall that spiral, the Federal Reserve on Monday said it would increase the volume of short-term loans available to banks to make it easier for them to continue lending. It was the second time in a week — after an emergency interest-rate cut last Tuesday — that the Fed had moved to stem potential fallout as the coronavirus sent markets gyrating.

Even for people who don’t have money in the markets, the developments are ominous. Large and small businesses hire or fire workers and buy equipment and raw materials based on their own financial strength and their expectations for how the economy will perform in the future. As companies retrench, it affects workers and suppliers, which then have to tighten their own belts.

LAYOFFS RISE; WAGES DECLINE. CONSUMERS SPEND LESS

Businesses in need of cash would normally turn to their banks for help in moments like this. But as banks get squeezed by sliding interest rates, their ability and appetite to lend to struggling companies diminish — the type of situation the Fed was trying to head off by increasing its short-term lending. At the same time, panicky investors don’t want to buy risky corporate debt, severing another potential lifeline for many companies. Investors are also yanking their money from mutual funds that invest in leveraged loans, a risky type of corporate debt that has become a popular way for many companies to finance their operations in recent years.

The result could be a surge in bankruptcies as companies — in particular in the shale industry, where many drillers are deep in debt — tip over a financial cliff. More workers lose their jobs. Families cancel vacations and postpone big purchases.

Round and round the cycle goes, further sapping the economy.

“Markets want to hear that the global economy is open for business, and the problem is, it isn’t easy to say that going forward,” said Patrick Chovanec, chief strategist at the investment advisory firm Silvercrest Asset Management.

It is possible, of course, that investors’ gloom will prove to be overblown.

At some point, for example, the coronavirus is likely to stop spreading; it already appears to be easing in China and South Korea. If that happens soon, any economic damage from closed factories and canceled conferences and restricted travel may prove fleeting.

Perhaps Russia and Saudi Arabia will quickly reach an agreement. And until they do, there is a silver lining to rock-bottom oil prices: The resulting cheap fuel will be a boon to consumers and to industries like trucking and airlines.

All is not lost. Even after the decline on Monday, the S&P is still up 140 percent over the last 10 years. And the scorching bond market rally — bond prices go up as yields go down — has delivered outsize returns to many individual investors. Mutual funds and ETFs holding longer-term US government bonds were up 22 percent so far this year as of Friday, according to Morningstar.

In addition, low interest rates are good for people who own or are looking to buy a home. A mortgage refinancing boom is underway, and many borrowers will pocket substantial monthly savings.

“This is a temporary headwind to the economy,” said Rick Rieder, chief investment officer of global fixed income at BlackRock. “It’s temporary, but it’s a tornadolike headwind, so it’s going to be powerful for a period of time.”

He added that the amount of uncertainty in the markets is higher now than it was at the peak of the financial crisis. “I don’t even remember in 2009 the uncertainty being so high,” he said.

Governments and central banks are scrambling to defuse the precarious financial situation. In addition to the Fed cutting interest rates and making it easier for banks to borrow money, the Trump administration and Congress are discussing ways to stimulate the economy.

But that is unlikely to offer much immediate help.

“Many investors are anticipating fiscal stimulus within days, but that’s not typically how DC acts — even in emergency situations,” Henrietta Treyz, director of economic policy at Veda Partners, an investment advisory and consulting firm in Bethesda, Maryland, said in a note to clients on Monday. “It takes weeks to pass even the most urgent of legislation, and there are very few ideas circulating on Capitol Hill right now.”

In the meantime, the signs of stress are multiplying, especially in normally mundane corners of the financial markets.

In recent days, for instance, investors that buy ultra-short-term debt issued by companies — including a popular variety known as commercial paper — have started growing jumpy. Investors like money-market mutual funds are demanding much higher interest rates.

That drives up many companies’ borrowing costs, which makes it more expensive for them to operate. It also shows that institutional investors fear that an increase in corporate defaults could be imminent.

The good news is that the US banking industry is, overall, much stronger than it was in 2008 as an intense financial crisis enveloped the world.

The energy industry, though, is shaping up to be among the hardest hit sections of the US economy. Demand for energy was already set to decline with an economic slowdown. Then Saudi Arabia and Russia initiated a pricing war.

Shares of companies like Marathon Oil and Apache Corp. fell more than 40 percent on Monday, while Exxon Mobil stock fell 12 percent, and Chevron slid 15 percent.

Some of the companies that pioneered the shale boom, including Chesapeake Energy and Range Resources, were already in trouble, and their woes are likely to intensify. Chesapeake’s stock goes for pennies; its bonds are trading at a level that reflect investor expectations of a default. Range Resources, an early natural gas driller in Pennsylvania, is, like many of its peers there, slashing its capital spending.

That is likely to hurt the local economies in which the gas companies operate — another reminder of how the economy is in danger of getting sucked into a steep, sinking spiral.


2020 The New York Times Company

Stocks recover on US-China trade talks optimism

NEW YORK — European and US stock markets rebounded Wednesday, helped by reports that China was open to a partial trade deal with the United States in key talks this week.

Stocks had fallen sharply on Tuesday after new US sanctions on Chinese entities prompted a brusque response from Beijing, setting a harsh tone ahead of high-level trade talks due to begin Thursday.

But equities in both Europe and New York gained following reports that a pared-down agreement was still possible that could link Beijing to higher agricultural purchases in exchange for a hold on new US tariff measures.

"Yesterday it looked like everything was dead and today it seems there's a chance," LBBW's Karl Haeling said of the trade talks. 

With less than a week to go before the next round of punitive tariffs is due to hit, Beijing's top trade envoy Liu He will Thursday meet US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

Craig Erlam, senior market analyst at Oanda trading group, noted that markets have misread the trade tealeaves before. 

"Traders are jumping at the prospect of good news at the moment but there's been so many false dawns in these negotiations, this may just be the latest," he told AFP.

Federal Reserve minutes showed US central bankers have become more anxious over a global slowdown even though the US outlook remains good for the moment.

Futures markets expect the Fed to cut interest rates again later this month.

Crude oil prices, which had rallied over one percent as Turkey launched an offensive against Kurdish militants in northern Syria, trimmed gains after data showed US oil output at record levels and stocks rising.

"It is a little worrying that inventories are rising despite lower prices, as it suggests that demand is weak," said market analyst David Madden at CMC Markets UK.

Among individual companies, Johnson & Johnson fell two percent after a jury in Pennsylvania ruled the company should pay $8 billion in punitive damages over the psychiatric drug Risperdal. The company said it would appeal.

American Airlines jumped 3.1 percent as it said a key benchmark on revenue rose to 2.5 percent from 1.5 percent in the third quarter, indicating strong demand despite a hit from Hurricane Dorian and the continued effect of the grounding of Boeing's 737 MAX planes.

American again pushed back the timeframe for resuming flights on the MAX, this time through mid-January.

KEY FIGURES AROUND 6 A.M. THURSDAY 

New York - Dow: UP 0.7 percent at 26,346.01 (close)

New York - S&P 500: UP 0.9 percent at 2,919.40 (close)

New York - Nasdaq: UP 1.0 percent at 7,903.74 (close)

London - FTSE 100: UP 0.3 percent at 7,166.50 (close)

Paris - CAC 40: UP 0.8 percent at 5,499.14 (close)

Frankfurt - DAX 30: UP 1.0 percent at 12,094.26 (close)

EURO STOXX 50: UP 0.9 percent at 3,459.14 (close) 

Pound/dollar: DOWN at $1.2205 from $1.2219 at 2100 GMT

Euro/pound: UP at 89.89 pence from 89.67 pence

Euro/dollar: UP at $1.0972 from $1.0957

Dollar/yen: UP at 107.49 yen from 107.09 yen

Tokyo - Nikkei 225: DOWN 0.6 percent at 21,456.38 (close)

Hong Kong - Hang Seng: DOWN 0.8 percent at 25,682.81 (close)

Shanghai - Composite: UP 0.4 percent at 2,924.86 (close)

Brent North Sea crude: UP 0.1 percent at $58.32 per barrel

West Texas Intermediate: DOWN 0.1 percent at $52.59 per barrel

source: news.abs-cbn.com

Global stocks mostly down on trade war, Brexit worries

NEW YORK -- European and US stocks took a beating Tuesday on dimming hopes for a US-China trade accord and as talks between Britain and Europe over Brexit teetered on the brink of collapse.

US markets were in the red the entire session after the Commerce Department late Monday announced new restrictions on 28 Chinese entities over human rights violations, drawing an angry rebuttal from Beijing.

Stocks took another drop during the afternoon after the US State Department announced new visa restrictions Chinese government and Communist Party officials alleged to have persecuted Muslims.

Besides the new US sanctions, there also were fresh reports citing unnamed Trump administration officials saying the White House is mulling new measures to curtail US investment in China.

"It's not a good sign to see these type of measures being put in place just before the trade negotiation resumes," said Tom Cahill of Ventura Wealth Management.

"The market is skeptical that anything good can come out of the negotiations this week."

Major US indices slid more than one percent, with the S&P 500 skidding 1.6 percent to 2,893.06.

European bourses also tumbled along with the British pound as a no-deal Brexit again seemed more likely following the latest clash between EU and British leaders on the divorce agreement.

BREXIT TALKS TEETERING

In an unusual move, Downing Street provided a readout of a meeting between British Prime Minister Boris Johnson and German chancellor Angela Merkel in which Merkel allegedly demanded a rewrite of Britain's approach to the long-vexing Irish border problem that made a compromise "essentially impossible."

The Downing Street official quoted Merkel as saying a deal now looked "overwhelmingly unlikely" and added that the Brexit talks were "close to breaking down."

Merkel's office declined to comment on confidential discussions, but European Council President Donald Tusk addressed Johnson caustically on Twitter.

"What's at stake is not winning some stupid blame game," Tusk said. 

"At stake is the future of Europe and the UK as well as the security and interests of our people. You don't want a deal, you don't want an extension, you don't want to revoke, quo vadis?"

The impasse weighed on the pound, which was at $1.2213 and could fall further, analysts warned.

"This public antagonism is a sign that negotiations are not going well," said Kathy Lien of BK Asset Management. "Unless Johnson proceeds with a request to delay Brexit, the next stop for GBP/USD could be 1.20."

KEY FIGURES AROUND 2040 GMT (4:40 a.m. Wednesday in Manila)

New York - Dow: DOWN 1.2 percent at 26,164.04 (close)

New York - S&P 500: DOWN 1.6 percent at 2,893.06 (close)

New York - Nasdaq: DOWN 1.7 percent at 7,823.78 (close)

London - FTSE 100: DOWN 0.8 percent at 7,143.15 (close)

Paris - CAC 40: DOWN 1.2 percent at 5,456.62 (close)

Frankfurt - DAX 30: DOWN 1.1 percent at 11,970.20 (close)

EURO STOXX 50: DOWN 1.1 percent at 3,432.76 (close) 

Tokyo - Nikkei 225: UP 1.0 percent at 21,587.78 (close)

Hong Kong - Hang Seng: UP 0.3 percent at 25,893.40 (close)

Shanghai - Composite: UP 0.3 percent at 2,913.67 (close)

Brent North Sea crude: DOWN 0.2 percent at $58.24 per barrel

West Texas Intermediate: DOWN 0.2 percent at $52.63 per barrel

Pound/dollar: DOWN at $1.2213 from $1.2293 at 2100 GMT

Euro/pound: UP at 89.69 pence from 89.25 pence

Euro/dollar: DOWN at $1.0955 from $1.0971

Dollar/yen: DOWN at 107.07 yen from 107.26 yen

source: news.abs-cbn.com

Apple gains on product launches as US stocks end flat

NEW YORK - Wall Street stocks finished a choppy session little changed on Tuesday, with Apple advancing as it unveiled new products and outlined a launch date for its streaming service.

Stocks spent much of the session in negative territory as investors pointed to somewhat better sentiment on trade talks that was offset by lower optimism on the economy.

But stocks finished the session on a strong note, with the Dow ending up 0.3 percent at 26,909.43.

The broad-based S&P 500 edged up less than 0.1 percent to 2,979.39, while the tech-rich Nasdaq Composite Index slipped less than 0.1 percent to 8,084.16.

Apple gained 1.2 percent as it unveiled new iPhones, including a lower-priced offering of $699, part of a bid to spur new upgrades in a slumping global smartphone market.

The tech giant also set launch dates on Tuesday for its original video offering, Apple TV+, and its game subscription service. The streaming announcement weighed on Netflix, which shed 2.2 percent.

With the new devices and services, "I think there are more reasons to stay with Apple than to defect from Apple," added Patrick Moorhead, analyst at Moor Insights & Strategy.

Ford fell 1.4 percent, a day after Moody's downgraded the credit rating of the auto company, citing a weak financial outlook as it embarks on ambitious restructuring.

Leading banks rose for a second straight day after JPMorgan Chase chief executive Jamie Dimon said the US consumer economy remains solid, even as business investment has slowed.

Dimon on Tuesday cut the bank's projections for net interest income due to Federal Reserve interest rate cuts. JPMorgan shares gained 1.2 percent.

This week's calendar includes reports on consumer prices and retail sales for August. The European Central Bank is also expected to announce new stimulus measures.

source: news.abs-cbn.com

Fed to cut rates for first time in a decade this month

A quarter-point Federal Reserve interest rate cut in July is almost a done deal, according to economists in a Reuters poll, who expect another later in the year amid rising economic risks from the ongoing US-China trade war.

Expectations in the July 16-24 poll for the first rate cut in more than a decade have firmed this month after several Fed members have strongly hinted policy easing is coming soon, pushing US stocks to new record highs.

While that lines up with most major central banks, which have turned dovish in recent months, the latest poll shows economists, like financial markets, have settled on a 25 basis point cut in the federal funds rate to 2-2.25 percent rather than a half-point reduction.

Over 95 percent of 111 economists now predict a 25 basis point cut at the July 30-31 meeting. Only two economists polled expected a 50 basis point reduction and a further two said the Fed would hold steady.

"The biggest reason for the Fed to cut rates is because it has been priced into the markets for a while now. If they didn't follow through and cut, it would cause a bit of a shock," said Andrew Hunter, senior US economist at Capital Economics.

"I think the recent general message from the Fed seems to be that it's more about downside risks to growth rather than the economy being already weak."

Indeed, while some forward-looking indicators on activity in the US economy have dipped, the unemployment rate is the lowest in 50 years and Wall Street is at a record high - not normally the environment for a change in the interest rate cycle.

Fed rate expectations have taken a U-turn this year, going to a holding pattern earlier in the year from a steady tightening path expected beforehand to a series of cuts. Indeed, just a month ago, the US central bank was still forecast to keep policy on hold for now and ease next year.

But since then, concerns about the impact from the trade war on already-slowing growth as well as weak inflation pressure have got policymakers increasingly concerned.

"Our reasoning for policy easing - slowing growth against a backdrop of subdued inflation and elevated uncertainty - is consistent with the Fed's reasoning for insurance cuts," noted economists at Goldman Sachs.

"By contrast, market-implied odds are consistent with a turn in the cycle, which we do not foresee in the near-term."

The US economy likely lost momentum last quarter and is now forecast to have expanded at an annualized pace of 1.8 percent in the April-June period, down from 3.1 percent reported for the first quarter, according to the poll. Growth is expected to hover around that rate in each quarter through to end-2020.

More than 75 percent of common contributors from last month either downgraded their growth outlook or kept it unchanged.

The latest consensus points to another rate cut in the final quarter and nearly 40 percent of respondents predicted a follow-up cut was likely to come as early as September.

But interest rate futures are pricing in three rate cuts this year - in July, September and December.

Beyond this year, the US central bank is forecast to keep policy on hold until 2021, the poll showed.

"We don't think this is the start of a full-on easing cycle; rather, these cuts are about providing a bit more accommodation to offset trade headwinds," said Josh Nye, a senior economist at RBC.

"Fifty basis points of easing would fall short of what markets are currently pricing in over the next year, but should be enough to placate investors that are concerned monetary policy has become a bit too restrictive."

The Fed's preferred measure of inflation - the change in the core personal consumption expenditures price index - has remained below the 2 percent target since the start of 2019 and is not expected shoot significantly higher anytime soon.

With the economy still growing and inflation on an even keel, there was a clear gap between what the economists say the Fed is likely to do and what they recommend.

Asked what the Fed should do at this month's meeting, nearly two-thirds of over 75 respondents said cut rates by 25 basis points. Five said policymakers should cut by 50, while the remaining - over 25 percent of economists - said they should do nothing.

"The issues that are affecting the US economy right now and the inflation environment won't be helped by lower rates," said Thomas Simons, senior economist at Jefferies.

"What is weakening economic forecasts going forward is trade tensions. Lowering rates 25 or 50 basis points is not going to change that situation. From a fundamental point of view, it doesn't make sense to us."

source: news.abs-cbn.com

Stocks gain, dollar weakens after Fed signals possible rate cuts

NEW YORK -- A gauge of global stock markets strengthened on Wednesday, bolstered by gains on Wall Street, and benchmark US Treasury yields and the dollar dropped after the Federal Reserve signaled possible interest rate cuts over the rest of this year.

The US central bank held interest rates steady, as expected, but said it "will act as appropriate to sustain" the country's economic expansion as it approaches the 10-year mark and dropped a promise to be "patient" in adjusting rates.

The market expects the Fed could cut rates as soon as its next meeting, in July.

"I think it’s right in line with market expectations, puts a July cut in play,” said Brett Ewing, chief market strategist at First Franklin Financial Services in Tallahassee, Florida.

Nearly half of the Fed's policymakers now show a willingness to lower borrowing costs over the next six months.

Even policymakers who did not write down a forecast for a rate cut this year believe "that the case for somewhat more accommodative policy has strengthened," Fed Chairman Jerome Powell said in a news conference following the meeting.

Investors' hopes that the Fed would soon cut interest rates were fueled on Tuesday when European Central Bank President Mario Draghi hinted at economic stimulus, comments that drove up stocks and weakened yields.

"You have global central banks in a nearly orchestrated positioning, prepared to act if respective economies falter," said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey. "Clearly the market is embracing it."

MSCI's gauge of stocks across the globe gained 0.70 percent. The index rose to its highest point in six weeks.

On Wall Street, the Dow Jones Industrial Average rose 38.46 points, or 0.15 percent, to 26,504, the S&P 500 gained 8.71 points, or 0.30 percent, to 2,926.46 and the Nasdaq Composite added 33.44 points, or 0.42 percent, to 7,987.32.

The pan-European STOXX 600 index ended little changed ahead of the Fed decision.

Investors will now turn attention to U.S.-China trade relations, with a meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping set for next week's G20 meeting in Japan.

“You have the G20 summit coming up in a week and a half, said Eric Donovan, managing director, OTC FX-interest rates at INTL FCStone in New York. "It’s kind of ridiculous to think that the Fed was going to cut today."

Benchmark 10-year U.S. notes last rose 8/32 in price to yield 2.0302 percent, from 2.058 percent late on Tuesday.

The dollar index, which measures the greenback against a basket of currencies, fell 0.41 percent, with the euro up 0.31 percent to $1.1226.

US crude settled down 0.3 percent at $53.76 a barrel, and Brent settled at $61.82 a barrel, down 0.5 percent.

source: news.abs-cbn.com

All eyes on Fed as stock market pines for rate cut: US stocks outlook

NEW YORK -- The Federal Open Market Committee meeting next week is shaping up as a pivotal one for Wall Street, with stocks primed for a selloff should the Fed fail to take an even more dovish tilt after policymakers raised expectations for a rate cut in recent weeks.

The benchmark S&P 500 has rallied more than 5 percent this month as softening economic data coupled with comments by Fed officials heightened expectations the Fed will cut rates by the end of the year and, at the very least, telegraph it is leaning toward a later rate cut at its June 18-19 meeting.

Those gains came on the heels of a selloff in May of nearly 7 percent in the S&P, largely fueled by investor concerns that trade wars were escalating, slowing the economy and putting it at risk of falling into a recession.

Bets for a rate cut were amplified by comments from Fed Chairman Jerome Powell on June 4, who said the central bank will respond "as appropriate" to the risks from a global trade war and other developments, and after a weak May payrolls report on June 7.

Bank of America Merrill Lynch Chief Economist Michelle Meyer expects the Fed's "dot plots" projection of interest rates, which represents the anonymous, individual rate projections of Fed policymakers for the next few years, to shift lower as officials start to factor in cuts. However, "the median dot will signal a Fed on hold," Meyer said in a note.

"The market has somehow convinced themselves that we are in an easing cycle. I am not sure how we got so far ahead of ourselves," said Art Hogan, chief market strategist at National Securities in New York.

"So now you’ve got Powell is kind of painted into a corner that he is really going to have to navigate carefully because you have market expectations that he said he would do whatever is appropriate."

In a recent note to clients, Goldman Sachs economist Jan Hatzius said one of the themes from recent Fed commentary is that there is a wide range of views from central bank officials, although most "indicated trade policy increased downside risks by increasing uncertainty" and the result of ongoing trade negotiations was highly uncertain.

Many investors had been looking toward the Group of 20 summit later this month for more definitive signs of the direction of trade talks between the United States and China, giving the Fed a clearer picture on whether to take action on rates at the July meeting. According to CME's FedWatch tool, money market traders are pricing in an 88.4 percent chance of a rate cut of at least a quarter of a percentage point in July.

Any clarity from the G20 may be hard to come by, however. US President Donald Trump said on Friday "it doesn't matter" if Chinese leader Xi Jinping attends the Group of 20 summit later this month, predicting a trade deal with Beijing would occur at some point anyway.

"They've put themselves in a position where they have optionality in both directions so they can respond," said Ward McCarthy, chief financial economist at Jefferies in New York said of the Fed.

Economic data this week was a mixed bag, with retail sales topping expectations and halting a tide of weak indicators, including the payrolls report and readings on inflation in the form of May consumer and producer prices with implications for core personal consumption expenditures, the Fed's favorite inflation measure.

"There were some important prints that confirmed some of the Fed’s fears – we didn’t get PCE but in PPI and CPI, you are not seeing inflation pressure bleeding through," said Rob Haworth, senior investment strategist at US Bank Wealth Management in Seattle.

Still, a cut at the June meeting has not been ruled out either, with the probability of a quarter point cut put at 24.2 percent, according to FedWatch. Asset manager Vanguard believes the Fed could implement an "insurance cut" as early as next week, according to the firm’s global chief economist Joe Davis.

And it's no surprise investors are willing to cheer a rate cut. According to Sam Stovall, chief investment strategist at CFRA Research in New York, of the past 16 rate cut cycles going back to 1946, the S&P 500 has climbed an average of 10.3 percent in the six months after the first rate cut and 14.1 percent in the 12 months after.

However, cuts didn't always precede a market boom, with declines coming five times in the six months following a new rate cut cycle, including the most recent ones in 2007 and 2001.

And to some, any hope for a rate cut is misguided given the current economic and market environment.

"You have first quarter GDP at 3.1 percent, you have almost record low unemployment and a stock market clamoring for a rate cut near all-time highs, it is basically ludicrous," said Michael O’Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.

source: news.abs-cbn.com

Wall Street edges lower, energy stocks fall

NEW YORK -- The S&P 500 slipped on Wednesday after ending the previous session with a record and the Nasdaq failed to hold all-time highs reached earlier in the day while investors waited for more earnings reports.

Energy stocks were the biggest drag on the S&P 500 as oil prices fell. While the tech-heavy Nasdaq had help from eBay Inc's upbeat earnings and a chipmaker rally, investors were digesting a mixed bag of reports. The S&P 500, closing roughly 0.5 percent below its intraday record high hit in late September, has rallied about 17 percent year-to-date. It has been supported by a dovish Federal Reserve, hopes of a US-China trade deal and largely upbeat earnings. But, with big companies such as Microsoft Corp and Facebook Inc, reporting after the close on Wednesday and Amazon.com and Intel Corp reports on tap for Thursday afternoon, many investors kept to the sidelines.

"While the expectations are for good reports from all four of them, recent strength and relative valuations are keeping people on the edge of their seat," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.

"There was no needle moving news today for people to be making bigger bets on anything after the big move we had yesterday."

In aftermarket trading, Microsoft shares rose about 3 percent and Facebook shares gained nearly 5 percent.

At the market close on Wednesday, the Dow Jones Industrial Average fell 59.34 points, or 0.22 percent, to 26,597.05, the S&P 500 lost 6.43 points, or 0.22 percent, to 2,927.25 and the Nasdaq Composite dropped 18.81 points, or 0.23 percent, to 8,102.02.

Profits of S&P 500 companies are expected to decline 1.1 percent for the first quarter, still a large improvement from the 2.3 percent drop estimated at the start of April. And nearly 78 percent of the 129 companies that have reported so far have surpassed earnings estimates, according to Refinitiv data.

"The overall picture confirms the economy is on a steady footing. It's skewing to the positive side," said Laura Kane, head of Americas thematic investing at UBS Global Wealth Management.

"The market is taking a pause," she said. "We've a lot of earnings coming this week and next. There's nothing today that would change the overall economic outlook."

Only three of the S&P 500's 11 major industry sectors ended the day in positive territory, and real estate led the gainers with a 0.8 percent rise. Energy was the biggest decliner with a 1.9 percent drop.

The technology sector lost its gains late in the session to close down 0.01 percent and the Philadelphia Semiconductor Index closed up 0.95 percent after hitting an all-time high during the session. Texas Instruments Inc rose 1.8 percent after its quarterly report.

Caterpillar Inc fell 3 percent as rising costs hit margins in its construction equipment business and the company reported tepid sales in the Asia-Pacific region.

AT&T Inc was the biggest drag on the S&P 500, declining 4 percent after the second-largest US wireless carrier reported quarterly revenue below Wall Street estimates.

EBay jumped 5 percent after the company raised its full-year sales and profit forecasts.

Anadarko Petroleum Corp jumped 11.6 percent, providing the biggest boost to the S&P 500, after Occidental Petroleum Corp sought to scuttle Chevron Corp's takeover of the company with a $57 billion bid.

Boeing Co closed up 0.38 percent even after scrapping its 2019 outlook and reporting quarterly revenue below estimates due to grounding of its 737 MAX jets. Its shares have lost about 11 percent since the deadly Ethiopian crash in early March.

Advancing issues outnumbered declining ones on the NYSE by a 1.01-to-1 ratio; on Nasdaq, a 1.09-to-1 ratio favored decliners.

The S&P 500 posted 49 new 52-week highs and two new lows; the Nasdaq Composite recorded 96 new highs and 37 new lows.

On US exchanges 6.57 billion shares changed hands compared with the 6.65 billion-share average for the last 20 sessions.

source: news.abs-cbn.com

Wall Street little changed ahead of earnings wave

NEW YORK -- US stocks ended a low-volume trading session little changed on Monday, with the biggest gains in the energy sector as investors otherwise stayed on the sidelines ahead of quarterly earnings.

Investors were waiting for some of the biggest S&P 500 companies, including Boeing Co, Amazon.com Inc and Facebook Inc to report first-quarter results later in the week. Additional reports could ease investor fears of an earnings recession.

Trading volume - which was the lowest so far in 2019 - was also muted by the fact that some investors were still on vacation after Friday's U.S. market holiday and because markets were closed in parts of Europe and Asia on Monday.

Phil Orlando, chief equity market strategist, at Federated Investors, in New York said he has been encouraged by quarterly results even though it was early in the reporting season.

"To some degree it could be some concern because we know it's a big earnings week. What will the overall tenor of this week look like by Friday?" said Orlando.

Orlando was impressed with the latest GDPNow forecast from the Atlanta Federal Reserve for a first-quarter expansion of 2.8 percent compared with a 0.2 percent forecast a month ago.

"That tells you the data has turned around and maybe earnings aren't going to be so bad," he said.

S&P 500 profits are expected to drop 1.7 percent year-over-year, according to Refinitiv data, in what would be the first earnings contraction since 2016.

But more than three-quarters of 82 S&P 500 companies that have reported so far have surpassed beaten-down expectations.

With the S&P trading at less than 1 percent below its record high reached in September, investors were also waiting for upcoming data such as first-quarter GDP before making bigger bets.

"It's important at this point to sit back and reflect on what the prospects are that will take us forward. It's appropriate to see what we're seeing today," Ryan Larson, head of U.S. equity trading at RBC Global Asset Management in Chicago.

The Dow Jones Industrial Average fell 48.49 points, or 0.18 percent, to 26,511.05, the S&P 500 gained 2.94 points, or 0.10 percent, to 2,907.97 and the Nasdaq Composite added 17.21 points, or 0.22 percent, to 8,015.27.

The S&P energy index jumped 2.1 percent in its biggest one-day percentage gain since January, as oil prices surged on the United States' move to further clampdown on Iranian oil exports, tightening global supplies.

But seven of the 11 major S&P sectors ended the day lower, led by a 1 percent drop in the real estate index.

Intuitive Surgical Inc fell 7 percent and was the biggest drag on the S&P 500 after the surgical robotics maker's quarterly profit missed analysts' estimates.

Kimberly-Clark Corp gained 5.4 percent, touching a near two-year high, after the consumer products maker reported better-than-expected earnings.

The PHLX Housing index fell 0.97 percent after data showed US home sales fell more than expected in March, pointing to continued weakness in the housing market.

Declining issues outnumbered advancing ones on the NYSE by a 1.41-to-1 ratio; on Nasdaq, a 1.33-to-1 ratio favored decliners.

The S&P 500 posted 17 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 33 new highs and 70 new lows.

On US exchanges 5.79 billion shares changed hands, compared with the 6.65 billion average for the last 20 trading days.

source: news.abs-cbn.com

Global stocks surge in broad rally, Treasury yields rise

NEW YORK -- Global equity markets surged on Monday, lifted by talk of more stimulus from China and by a broad rally on Wall Street that overcame a plunge in Boeing shares after one of its newest jets crashed, while US debt yields rose on improved risk appetite.

China's main bourses clawed back almost half the 4 percent they lost on Friday as the country's central bank chief pledged billions of dollars of cuts to taxes and fees to shore up an economy growing at its slowest pace in almost three decades.

US stocks followed strong gains in Europe with the tech-heavy Nasdaq rising 2 percent and the benchmark S&P more than 1 percent after Wall Street posted losses every day last week.

MSCI's gauge of global markets posted its biggest gain in seven weeks while European shares notched their best day in four weeks.

"This market, it comes in waves. Everybody who missed the rally in January and February is looking to buy the dip," said Dennis Dick, a proprietary trader who is head of market structure at Bright Trading LLC in Las Vegas.

"It's buy the dip, it's back," Dick said.

The rally on Wall Street given the decline in Boeing's shares was especially impressive, said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.

"It's a very strong sign of overall market strength," James said. "After the weakness in the markets last week, things have gotten a little bit oversold," he said.

The Dow rebounded after Boeing Co, the index's best performing component this year, pared steep losses after some airlines grounded the company's new 737 MAX 8 passenger jet following a second deadly crash of the airliner in five months.

Boeing shares dropped 5.3 percent, paring losses of about 13.5 percent shortly after the open.

The Dow Jones Industrial Average rose 200.64 points, or 0.79 percent, to 25,650.88. The S&P 500 gained 40.23 points, or 1.47 percent, to 2,783.3 and the Nasdaq Composite added 149.92 points, or 2.02 percent, to 7,558.06.

The FTSEurofirst 300 index of leading regional shares closed up 0.76 percent, while MSCI's gauge of stocks across the globe gained 1.2 percent.

European shares rose on merger chatter in the battered banking sector, which along with talk of new Chinese stimulus, helped ease worries over a slowdown in the global economy.

In China, the Shanghai Composite index rose 1.92 percent and the blue-chip CSI300 gained 1.98 percent.

The dollar weakened after mixed U.S. retail sales data and sterling jumped as investors braced for parliamentary votes on Prime Minister Theresa May's Brexit deal that could decide the terms on which Britain leaves the European Union.

May's failure to win last-minute concessions from the European bloc regarding the Irish border set the stage for another humiliating defeat in parliament.

Sterling fell in early trade but later erased its losses to trade at $1.3145, up 1 percent on the day.

The dollar index fell 0.11 percent, with the euro up 0.05 percent to $1.1244. The Japanese yen weakened 0.09 percent versus the greenback at 111.24 per dollar.

Norway's crown gained after strong inflation data raised interest rate hike expectations, with some strategists saying a March move by the Norges Bank was a done deal.

With market volatility low, investors have rushed to buy currencies where central banks are still raising rates or economic data has pointed to a brighter economic outlook.

The benchmark 10-year US Treasury note fell 5/32 in price to yield 2.6411 percent.

Oil prices rose 1 percent on Monday, lifted by comments from Saudi Energy Minister Khalid al-Falih that an end to OPEC-led supply cuts was unlikely before June.

US crude rose 72 cents to settle at $56.79 per barrel and Brent settled 84 cents higher at $66.58.

Gold fell, moving further off the key $1,300-per-ounce mark it briefly surpassed last week.

US gold futures settled 0.6 percent lower at $1,291.10 an ounce.

source: news.abs-cbn.com

Global stocks mixed as Brexit talks resume

NEW YORK -- Global stocks were mixed Tuesday as markets awaited details on US-China trade negotiations and Brexit talks resumed between the EU and Britain.

Wall Street finished a choppy session marginally lower after European bourses had pushed higher, shrugging off Brexit worries.

"The market is trying to react to a mixed bag of things," said Art Hogan, chief market strategist at National. "How much is priced in terms of good news in China trade and just how much is the economy slowing domestically."

After a strong start to 2019, US stocks have been steady but unspectacular the last 2 weeks while Beijing and Washington have appeared to be inching towards a deal to resolve their trade friction.

After the initial optimism, analysts on Tuesday took a more cautious view of the progress in the tariff battle, with some arguing that the gains already have been figured into valuations or questioning whether an agreement will truly resolve the impasse.

Meanwhile, the Institute for Supply Management reported the US services sector had jumped in February but the report followed other data that suggest the US economy is slowing.

BREXIT TALKS RESUME 

London's FTSE 100 gained 0.7 percent, helped by a drop in the pound that lifted share prices of multinationals listed on the benchmark index.

"Stocks continue to shrug off no-deal Brexit worries, as UK and EU negotiations are scheduled in Brussels ahead of the March 29 divorce deadline," analysts at Charles Schwab wrote.

British economic data were mixed, with services sector activity improving in February from the January level, which was a 29-month low. 

The data suggest "at least some of the concern about Brexit's impact on the economy has been overdone," noted research group Capital Economics in a client note.

The EU's lead Brexit negotiator Michel Barnier met Britain's negotiating team as both sides sought solutions a few weeks before this month's looming Brexit deadline.

Barnier met UK attorney general Geoffrey Cox and Brexit minister Stephen Barclay for 4 hours over dinner, an EU official told AFP following conciliatory signals from both sides.

The official could not confirm whether the talks would resume on Wednesday when he said journalists would be briefed on the results of Tuesday's meeting.

The Bank of England warned that Europe's financial system faced "potential risks" from a no-deal Brexit, as it extended weekly lending facilities to include euros.

Earlier, Shanghai stocks jumped 0.9 percent after the government announced hundreds of billions of dollars' worth of tax cuts to stimulate the economy.

Beijing will also increase spending, with the fiscal deficit set to increase to 2.8 percent of GDP, from 2.6 percent last year.

The government is aiming for economic growth of 6.0-6.5 percent in 2019 below last year's 6.6 percent, the lowest level in three decades.

The move comes as Chinese leaders are struggling to address a mounting debt crisis as well as the US trade war.

KEY FIGURES AROUND 5:40 AM MANILA TIME 

New York - Dow: DOWN 0.1 percent at 25,806.63 (close)

New York - S&P 500: DOWN 0.1 percent at 2,789.65 (close)

New York - Nasdaq: DOWN less than 0.1 percent at 7,576.36 (close)

London - FTSE 100: UP 0.7 percent at 7,183.43 (close)

Frankfurt - DAX 30: UP 0.2 percent at 11,620.74 (close)

Paris - CAC 40: UP 0.2 percent at 5,297.52 (close)

EURO STOXX 50: UP 0.3 percent at 3,327.19 (close)

Tokyo - Nikkei 225: DOWN 0.4 percent at 21,726.28 (close)

Hong Kong - Hang Seng: FLAT at 28,961.60 (close)

Shanghai - Composite: UP 0.9 percent at 3,054.25 (close)

Pound/dollar: DOWN at $1.3176 from $1.3180 at 2200 GMT on Monday

Euro/pound: DOWN at 85.81 pence from 86.05 pence

Euro/dollar: DOWN at $1.1308 from $1.1340

Dollar/yen: UP at 111.88 yen from 111.72 yen 

Oil - Brent Crude: UP 19 cents at $65.86 per barrel

Oil - West Texas Intermediate: DOWN 3 cents at $56.56 per barrel

source: news.abs-cbn.com

World stocks rally as Trump delays China tariffs

NEW YORK -- Global stocks rose Monday after US President Donald Trump said he would delay a hike in tariffs on Chinese goods and described the two countries as being in "advanced stages" of negotiations towards a deal.

Trump said expects to hold a "signing summit" with China's President Xi Jinping and touted the rally in US stocks over the course of his presidency as evidence "we are bringing back American faster than anyone thought possible."

China's Xinhua news agency also said Washington and Beijing had "made substantial progress on specific issues" including on transfer of technology, intellectual property and agriculture.

The trade confrontation has dogged markets for months, but the latest positive signs provided a boost, lifting equities worldwide, although Wall Street profit taking late in the session cut into the gains in New York. 

Most key European markets were firmly in the black by the close, but London underperformed, finishing narrowly positive.

Shanghai had spearheaded gains across Asia with a surge of more than five percent, while Hong Kong and Tokyo each rose 0.5 percent.

"Global markets are on the rise... as markets celebrate the news of an indefinite delay to the deadline beyond which US will ramp up tariffs on Chinese imports," said IG analyst Joshua Mahony.

Trump also made a splash in the oil market on Monday, causing petroleum prices to fall by more than three percent from three-month peaks when he urged OPEC to help cut "high" prices and aid the "fragile" world economy. 

"Oil prices getting too high. OPEC, please relax and take it easy," he tweeted.

Trump's comments were a catalyst for the drop in oil prices, but the impact could soon be reversed, said Robbie Fraser, global commodity analyst at Schneider Electric

"The market could find support later this week as trade relations continue to eye improvement between the US and China," Fraser said. "That could continue to ease demand concerns, particularly if coupled with strong crude and product draws from this week's inventory reports." 

Britain and the United States meanwhile agreed Monday to hold on to their system of handling multi-trillion dollar financial transactions to avoid market uncertainty following Brexit.

The UK and US carry out trades of derivatives -- or securities whose value is based on an underlying asset such as currencies, stocks and commodities -- worth a combined $2.4 trillion daily, Bank of England Governor Mark Carney told a press conference in London.

KEY FIGURES AROUND 2140 GMT (5:40 a.m. Tuesday in Manila)

New York - Dow: UP 0.2 percent at 26,091.95 (close)

New York - S&P 500: UP 0.1 percent at 2,796.11 (close)

New York - Nasdaq: UP 0.4 percent at 7,554.46 (close)

London - FTSE 100: UP 0.1 percent at 7,183.74 (close)

Frankfurt - DAX 30: UP 0.4 percent at 11,505.39 (close)

Paris - CAC 40: UP 0.3 percent at 5,231.85 (close)

EURO STOXX 50: UP 0.3 percent at 3,280.01 (close)

Shanghai - Composite: UP 5.6 percent at 2,961.28 (close)

Tokyo - Nikkei 225: UP 0.5 percent at 21,528.23 (close)

Hong Kong - Hang Seng: UP 0.5 percent at 28,959.30 (close)

Euro/dollar: UP at $1.1360 from $1.1335 at 2200 GMT

Pound/dollar: UP at $1.3098 from $1.3053

Euro/pound: DOWN at 86.73 pence from 86.81 pence

Dollar/yen: UP at 111.05 yen from 110.69 yen

Oil - Brent Crude: DOWN $2.36 at $64.76 per barrel

Oil - West Texas Intermediate: DOWN $1.78 at $55.48 per barrel

source: news.abs-cbn.com

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