por admin » Mié Ene 18, 2023 12:24 pm
Stocks give back gains, Dow sheds 350 points as January rally loses steam
Tanaya Macheel
Sarah Min
NEW YORK, NEW YORK - JANUARY 17: Traders work on the floor of the New York Stock Exchange during morning trading on January 17, 2023 in New York City. Stocks opened low after a holiday weekend disrupting an upswing in early 2023 momentum. Goldman Sachs reported that its quarterly profit plunged 66% from a year earlier to $1.33 billion and Morgan Stanley also reported a more than $2 billion in profit for the fourth quarter, giving the company a 40 percent decline from the previous year. (Photo by Michael M.
Traders work on the floor of the New York Stock Exchange during morning trading on January 17, 2023 in New York City.
Michael M. Santiago | Getty Images
Stocks gave back earlier gains on Wednesday as investors hit the brakes on the new year’s rally, now in its third week.
The Dow Jones Industrial Average fell 354 points, or 1%, while the S&P 500 lost 0.8%. The Nasdaq Composite lost 0.6% and was on pace for its first down day in the last eight.
Yung-Yu Ma, chief investment strategist at BMO Wealth Management, attributed the reversal to a combination of skittishness and profit taking.
“We’ve had such a strong start to the year, but now we’re amid a tense earnings season, recently got weaker data — retail sales and yesterday’s Empire State Manufacturing Survey. Plus the Fed meeting on Feb. 1st is looming large,” he said. “There’s not a whole lot of reason to get aggressive here, but all of those factors above suggest that caution is warranted in the near term.”
Dow Jones Industrial Average
.DJI:Dow Jones Global Indexes
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The Dow Jones Industrial Average on Wednesday
Microsoft announced plans to lay off about 10,000 employees, which hurt investor sentiment. The stock fell and dragged the Dow lower with it.
Investors were also digesting the latest reading on the producer price index, which measures input costs from companies. The PPI showed a 0.5% decline for December. Economists surveyed by Dow Jones expected a 0.1% decline. That briefly gave relief to investors who have hoped for inflation to retreat and for the Federal Reserve to slow its rate-hiking campaign.
Declining prices were also reflected in retail sales, which fell 1.1% in December, slightly more than the 1% forecast.
Investors have been enjoying strong upward momentum for stocks since the start of the year, although many have begun to doubt the market’s strength. The Dow is still higher by 1% for the month, while the S&P and Nasdaq are still up by 3% and 5%, respectively.
35 MIN AGO
Southwest falls on union call for a strike vote
Southwest shares fell 2% amid news that the company’s pilots union is calling a vote to approve a potential strike.
The news comes just weeks after the airline carrier suffered a holiday disaster as winter storms wreaked havoc across the country.
The union’s president, Casey Murray, wrote that they are negotiating “gratitude pay to compensate our Pilots who suffered through the meltdown.”
— Leslie Josephs, Samantha Subin
1 HOUR AGO
Oil service stocks as a group climb to nearly a 4-year high
Oil service stocks, too, are riding the latest wave of China reopening/soft landing enthusiasm.
The VanEck Oil Services ETF (OIH) added 1.2% early Wednesday, reaching its highest since April 2019 and bringing the 2023 year-to-date rally to more than 15%. Among individual stocks, Transocean (RIG), SLB (the former Schlumberger), Tenaris (TS) and Valaris (VAL), Helix Energy (HLX) and Oceaneering International (OII) all hit new 52-week highs.
— Scott Schnipper, Gina Francolla
2 HOURS AGO
Powell test positive for Covid
Federal Reserve Chairman Jerome Powell tested positive for Covid-19 and is experiencing “mild symptoms,” the central bank said Wednesday.
“Chair Powell is up to date with COVID-19 vaccines and boosters. Following Centers for Disease Control and Prevention guidance, he is working remotely while isolating at home,” a news release said.
— Jeff Cox
2 HOURS AGO
Ulta, Arch Capital Group hit all-time highs
Here are the shares hitting fresh highs as markets climb following better-than-expected inflation data.
Tapestry is trading at levels not seen since Dec, 2021
Ulta is trading at all-time high levels back to its IPO in October, 2007
Hess is trading at all-time highs back to its merger with Cletrac and public listing on the NYSE in 1962
SLB is trading at levels not seen since Oct, 2018
Arch Capital Group is trading at all-time high levels back to when it began trading on the NASDAQ in 2000
General Electric is trading at levels not seen since Nov, 2021
United Airlines is trading at levels not seen since Nov, 2021
CDW Corp is trading at levels not seen since Jan, 2022
There’s also one stock hitting a fresh low.
L3Harris Technologies is trading at lows not seen since Mar, 2021
—Carmen Reinicke, Chris Hayes
2 HOURS AGO
Dollar index slides to lowest since May as base metals reach highest since June
You’d almost think they were trading in inverse lockstep, but the DXY Dollar Index slid to its lowest since late May on Wednesday at the same time as a group of key industrial metals surged to their highest price since June.
To be specific, the dollar index sank to its lowest since May 31, with the greenback hurt by weaker-than-expected wholesale prices and retail sales in December and multi-month lows in two- and 10-year Treasury yields.
At the same time, copper and aluminum extended their recent rallies, climbing to the highest since June. So far in 2023 alone, copper prices are higher by more than 13%.
Among base metal stocks and ETFs, the Global X Copper Miners ETF is ahead 3.2% in early Wednesday trading and Freeport-McMoRan added 3.5% (and up almost 21% year to date).
— Scott Schnipper, Gina Francolla
3 HOURS AGO
Microsoft is laying off 10,000 employees
Microsoft shares rose slightly Wednesday after the software giant said its laying off 10,000 employees as it grapples with slowing revenue growth.
The company joins a slew of tech behemoths that have recently reduced their workforces as the economy slows, demand dwindles and inflations persists.
The reductions are expected to take place through March 31. Microsoft also said it would take a $1.2 billion charge.
— Samantha Subin
3 HOURS AGO
Stocks rise to begin trading Wednesday
Stocks opened higher on Wednesday.
The Dow Jones Industrial Average rose 37 points, or 0.1%. The S&P 500 added 0.2% and the Nasdaq Composite advanced 0.6%.
— Tanaya Macheel
4 HOURS AGO
10-year Treasury yield falls below 3.44% after PPI report
The yield on the benchmark 10-year Treasury note tumbled below 3.44% after December’s producer price index showed a larger-than-expected decline in wholesale prices.
The yield on the 10-year last traded 10 basis points lower at 3.439%, while the yield on the 30-year Treasury bond dropped around 7 basis points to 3.573%.
Yields move inversely to prices.
— Samantha Subin
4 HOURS AGO
Retail and food service sales fall more than expected in December
Retail and food service sales for December dropped 1.1% from the prior month, according to data released Wednesday in the Advance Monthly Sales for Retail and Food Service report.
That marks a larger drop than in November, which brought a month-over-month slide of 0.6%. And it’s a slightly bigger move than the loss of 1% expected by economists polled by Dow Jones.
The report is meant to provide an early indication of sales trends in retail and food service companies.
— Alex Harring
4 HOURS AGO
Producer prices fell more than expected in December
The producer price index, a measure of prices received at the wholesale level, fell 0.5% in December. The inflation measure slipped by more than analysts expected, showing that prices are decreasing amid the Federal Reserve’s rate hikes.
A 1.6% decline in prices for final demand goods weighed down the total index, according to the Wednesday report by the Bureau of Labor Statistics. On the flip side, the index for final demand services rose 0.1%.
Economists expected that the index would rise 0.1% on the month and be 5.5% higher on the year, signaling a slowdown in price increases.
—Carmen Reinicke, Jeff Cox
4 HOURS AGO
Stocks making the biggest premarket moves
Here are the stocks making the biggest moves in early morning trading.
Moderna – Moderna rose 7.5% after the pharmaceutical company said Tuesday that its RSV vaccine is 84% effective in preventing disease in older adults.
Oatly — The food stock jumped 6.7% following an upgrade by analysts at Mizuho, citing improving liquidity.
PNC Financial — The regional bank fell more than 4% after PNC’s fourth quarter results missed Wall Street estimates.
GoDaddy — GoDaddy’s stock gained about 4% following an upgrade to outperform from and line at Evercore ISI.
For further details and more big movers check out the full list here.
— Samantha Subin, Tanaya Macheel
5 HOURS AGO
CrowdStrike inches up following BMO initiation
CrowdStrike gained 1.5% in premarket trading after BMO Capital Markets initiated coverage of the stock.
Analyst Keith Bachman named the stock an outperformer, saying CrowdStrike could compete within the endpoint security market and had significant growth opportunities. His price target implied an upside of 14.9% over where it closed Tuesday.
“We believe that CrowdStrike offers best-in-class endpoint security capabilities and an expanding platform that will help CrowdStrike compete against Microsoft and other vendors,” Bachman said in a note to clients Wednesday.
CNBC Pro subscribers can read more about the call here.
CrowdStrike Holdings Inc
CRWD:NASDAQ
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CrowdStrike stock
— Alex Harring
6 HOURS AGO
IBM falls after Morgan Stanley downgrade
IBM shares dipped nearly 2% in the premarket after Morgan Stanley lowered its rating on the tech company to equal weight from overweight.
“Should our 2023 Industry Outlook prove correct, and early cycle dynamics emerge in mid 2023, we see risk to outperformance given the stock is trading near-record highs and IBM historically underperforms IT Hardware and its peers in an early cycle environment,” analyst Erik Woodring said in a note to clients.
— Alex Harring
9 HOURS AGO
European markets mixed; UK inflation rate falls for second month
European markets were mixed Wednesday as uncertainty persisted on the economic outlook, a topic high on the agenda at the World Economic Forum in Davos this week.
EUROPEAN MARKETS
TICKER COMPANY PRICE CHANGE %CHANGE
.FTSE
FTSE 100 7830.7 -20.33 -0.26
.GDAXI
DAX 15181.8 -5.27 -0.03
.FCHI
CAC 40 Index 7083.39 6.23 0.09
.FTMIB
FTSE MIB 26052.39 71.2 0.27
.IBEX
IBEX 35 Idx 8933.3 42.9 0.48
The pan-European Stoxx 600 index was fractionally higher in early trade. Travel and leisure stocks added 1.1% while chemicals dropped 0.6%.
Meanwhile, the annual rate of inflation in the U.K. fell in December to 10.5% — slightly below analyst expectations. It marked the second month of declines, after the rate slipped from a 41-year high to 10.7% in November.
- Elliot Smith
10 HOURS AGO
Bank of Japan’s Kuroda: No need to further expand bond target band
Bank of Japan’s governor Haruhiko Kuroda said in an afternoon press conference on Wednesday that there is no further need to expand its yield curve control range, according to a Reuters translation.
“We don’t need to further expand the band around our yield target,” Kuroda was quoted as saying.
“It’s been not long since we decided on our measures in December. It will likely take some more time for the measures to start having an effect in fixing market function,” he said.
The Bank of Japan held its interest rates at a dovish -0.1% rate and made no changes to its yield curve control band.
– Jihye Lee
18 HOURS AGO
Moderna shares jump in extended trading
Moderna shares jumped more than 5% in extended trading Tuesday after the pharmaceutical company said its vaccine for respiratory syncytial virus is effective at preventing the disease in older adults.
The company expects to file an application for approval with the Food and Drug Administration in the first half of this year.
Moderna Inc
MRNA:NASDAQ
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Moderna shares jump
— Sarah Min, Spencer Kimball
18 HOURS AGO
United Airlines shares rise after earnings
Shares of United Airlines rose more than 2% in Tuesday extended trading after the firm topped estimates in its latest earnings results, which showed that travel demand remained resilient in spite of higher fares.
United Airlines reported adjusted earnings per share of $2.46, compared to the $2.10 per share, according to consensus estimates from Refinitiv. It reported total revenue of $12.4 billion, instead of the forecasted $12.2 billion.
United Airlines Holdings Inc
UAL:NASDAQ
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United Airlines shares rise
— Sarah Min, Leslie Josephs
18 HOURS AGO
Market conditions grow tough in week three after ‘bad year,’ BTIG’s Krinsky says
It’s more more likely that stock market conditions are closer to a “tactical high than a new uptrend,” BTIG chief market technician Jonathan Krinsky wrote in a note to clients Tuesday.
One problem for optimists is that “history suggests that week three after a bad year is when things get more difficult, and we expect this year to follow that pattern,” Krinsky said. “Risk/reward looks poor here after a two-week rally that was led by the most-shorted names,” and which rose for six straight sessions and nine out of 12 days, the analyst wrote.
There are two other disquieting omens for the market:
The recent run-up in Caterpillar to an all-time high, which left the construction machinery maker “about 25% above its” 200-day moving average. “Over the last 30 years, it hasn’t spent too much time in this range,” BTIG said.
Signs that the slide in the dollar may be over in the face of “some downside exhaustion on a weekly timeframe,” and a 50% chart retracement in the DXY dollar index measured from the low in 2021 to the high in 2022. A bounce higher in the dollar “would also be broadly negative,” Krinsky wrote, noting that dollar strength in late September accompanied a bottom in the S&P 500.
— Scott Schnipper
18 HOURS AGO
Stock futures open lower
U.S. stock futures inched lower on Tuesday night.
Futures tied to the Dow Jones Industrial Average fell by 38 points, or 0.11%. S&P 500 and Nasdaq 100 futures dipped 0.11% and 0.14%, respectively.
— Sarah Min