Tag Archives: Stock Market

Global stocks post longest streak of gains in two years; dollar firms

NEW YORK (Reuters) – The S&P 500 closed in positive territory for the year for the first time in 2016, leading a gauge of stocks across major markets to a fifth week of gains, its longest weekly run in more than two years.

The dollar, meanwhile, edged up on Friday but ended the week lower against a basket of major currencies, giving a weekly boost to energy and other commodity prices. The U.S. currency fell for a third consecutive week, most recently weighed by the Federal Reserves’ resetting of market expectations on the number of times it will raise rates in 2016.

Oil prices slipped after hitting 2016 peaks.

On Wall Street, the S&P 500 closed above the level where it ended last year for the first time. Healthcare and financial sector stocks were among the leaders, a welcome signal of rotation for stock bulls.

With the fear of a U.S. recession mostly in the rear-view mirror, investors want to add to stock exposure and are buying up the year’s worst performers, according to Art Hogan, chief market strategist at Wunderlich Securities in New York.

“You want to see sector rotation into the laggards,” he said, noting that the rise to positive territory for the S&P 500 could mean the five-week stocks rally could lose steam.

“What we’ve seen is enough good news to say we’re not going into recession. This is a short-term top in a longer-term bull market.”

The Dow Jones industrial average rose 120.81 points, or 0.69 percent, to 17,602.3, the S&P 500 gained 8.97 points, or 0.44 percent, to 2,049.56 and the Nasdaq Composite added 20.66 points, or 0.43 percent, to 4,795.65.

The CBOE Volatility Index a measure of the price traders pay for protection against a slide on the S&P 500, closed at its lowest level since mid-August.

MSCI’s index of stocks in major developed markets gained 1.4 percent this week to end a fifth straight positive week, a streak not seen since February 2014. Stocks in emerging markets jumped 3.2 percent in their third straight weekly advance.

DOLLAR TICKS UP ON SHORT-COVERING

The dollar index bounced back from a five-month low, rising against most major currencies, as traders covered short bets triggered by the Fed’s statement on Wednesday.

The yen gave back 0.2 percent versus the dollar after hitting its strongest since October 2014 on Thursday. The euro slipped 0.4 percent to $1.127.

On Friday, the European Central Bank’s chief economist, Peter Praet, indicated the ECB could further loosen monetary policy.

“It’s been a dizzying selloff for the dollar, so it’s natural that you’re going to get some kind of bounce,” said FX Analytics partner David Gilmore in Essex, Connecticut.

A rising dollar in 2015 weighed on the global economy, and its recent decline has helped push up oil and other commodity prices.

U.S. crude prices slipped after trading above $41 a barrel for the first time since early December as the weekly U.S oil rig count rose for the first time since December. U.S. crude <CLc1> settled up for a fifth straight week.

Brent crude’s front-month contract fell 0.2 percent to $41.47 a barrel after touching a 2016 high of $42.54.

The benchmark U.S. Treasury note rose 7/32 in price to yield 1.8784 percent.

Spot gold closed the week up 0.5 percent after earlier gaining as much as 1.8 percent from last Friday.

Copper posted its highest weekly closing level since October.

(Reporting by Rodrigo Campos, additional reporting by Dion Rabouin, Gertrude Chavez-Dreyfuss, Barani Krishnan and Laila Kearney; Editing by Dan Grebler)

Dow Jones closes positive for year as commodities rally, dollar dives

NEW YORK (Reuters) – Wall Street moved higher on Thursday, pushing the Dow Jones industrial average into positive territory for the year, as commodity prices rose on the back of a weaker U.S. dollar to boost shares in the energy and materials sectors.

The Dow’s move into positive territory came a day after the U.S. Federal Reserve took a dovish stance that weighed on the dollar.

“It was a weak dollar rally,” said John Augustine, chief investment officer at Huntington National Bank. “It took up groups associated with a weaker dollar.”

The top performing sectors in the S&P 500 were materials, industrials and energy.

The rally was a “continued reaction from the Fed’s move,” said David Lefkowitz, senior equities analyst at UBS Americas Wealth Management in New York.

The Fed on Wednesday pointed to moderate U.S. economic growth and strong job gains but cautioned about risks from an uncertain global economy.

The central bank pointed to the possibility of two more rate hikes before the end of the year, having laid out four hikes in 2016 when it raised rates in December.

The Dow and S&P were at their highest since Dec. 31 and the Nasdaq hit its highest since Jan. 7.

For the blue-chip Dow, which includes stocks like GE and Goldman Sachs, the past five weeks’ rally has now clawed back the deep losses that kicked off the year.

Investors’ fears that the U.S. economy could be headed for another recession have faded into the background at least temporarily.

“It’s a pretty equity-friendly backdrop,” Lefkowitz said.

The Dow Jones industrial average closed up 155.73 points, or 0.9 percent, at 17,481.49. The S&P 500 gained 13.37 points, or 0.66 percent, to 2,040.59 and the Nasdaq Composite added 11.02 points, or 0.23 percent, to 4,774.99.

U.S. crude settled up 4.5 percent at $40.20 a barrel on optimism that major producers will strike an output freeze deal next month amid rising crude exports and gasoline demand in the United States..

Healthcare was the only decliner among the 10 major S&P 500 sectors. It fell 1.05 percent, dragged down by Eli Lilly’s 4.7-percent fall.

Industrials gained 2 percent, propped up by General Electric’s 2.6-percent rise to $30.96. The stock gave the biggest boost to the S&P 500.

FedEx rose 11.8 percent at $161.34 after the package delivery company forecast better-than-expected full-year earnings.

Endo International dropped 12.5 percent at $29.68, after the drugmaker forecast first-quarter results below estimates.

About 8.2 billion shares changed hands on U.S. exchanges, above the 8.02 billion average over the last 20 sessions.

Advancing issues outnumbered declining ones on the NYSE by 2,473 to 595, for a 4.16-to-1 ratio on the upside; on the Nasdaq, 1,927 issues rose and 872 fell for a 2.21-to-1 ratio favoring advancers.

The S&P 500 posted 61 new 52-week highs and 6 new lows; the Nasdaq recorded 73 new highs and 74 new lows.

(Additional reporting by Abhiram Nandakumar; Editing by Nick Zieminski)

S&P 500 closes at 2016 high as Federal Reserve signals fewer rate hikes

NEW YORK (Reuters) – The S&P 500 closed at its highest level of the year on Wednesday after the U.S. Federal Reserve left interest rates untouched and signaled fewer rate hikes in coming months.

The Fed indicated moderate U.S. economic growth and “strong job gains” would allow it to tighten policy this year with fresh projections showing policymakers expected two quarter-point hikes by the year’s end, half the number seen in December.

But the U.S. central bank noted the United States continues to face risks from an uncertain global economy.

Because of that uncertainty, “the committee judged it prudent to maintain the current policy stance at this meeting,” Fed Chair Janet Yellen said.

The decision to keep rates steady was in line with analyst predictions, but the Fed’s tone was surprising to some.

“Most folks were looking for a slightly hawkish statement and they did not deliver in that,” said Tom Porcelli, RBC Capital Markets chief U.S. economist. “It was balanced at best and probably even slightly dovish.”

The Dow Jones industrial average closed up 74.23 points, or 0.43 percent, to 17,325.76, the S&P 500 had gained 11.29 points, or 0.56 percent, to 2,027.22 and the Nasdaq Composite had added 35.30 points, or 0.75 percent, to 4,763.97.

The CBOE volatility index a gauge of what equity investors are willing to pay for protection against a drop on the S&P 500, closed at its lowest since early December.

Eight of the 10 major S&P sectors closed higher. Materials were up the most at 1.74 percent. Healthcare and financial stocks lagged.

The S&P energy sector rose 1.6 percent as U.S. oil prices jumped almost 6 percent after major producers firmed up plans to discuss an output freeze and U.S. crude stockpiles grew less than expected.

In corporate news, shares of Peabody Energy Corp, the largest U.S. coal producer, fell 45.4 percent to $2.19. after the company said in a regulatory filing it may have to seek bankruptcy protection.

FedEx shares jumped 5.3 percent after markets closed on a strong full-year earnings forecast in its fiscal third-quarter financial results.

LinkedIn fell 4.9 percent at $109.81 and Gap fell 1.4 percent to $29.28 after Morgan Stanley downgraded both stocks.

Mallinckrodt dropped 6.4 percent to $55.69, continuing its slide for a second day, while fellow specialty drugmaker Endo International recouped some of its losses from Tuesday, jumping 4.1 percent to $33.91.

About 7.6 billion shares changed hands on U.S. exchanges, below the 8.1 billion average over the last 20 sessions.

Advancing issues outnumbered declining ones on the NYSE by 2,462 to 590, for a 4.17-to-1 ratio on the upside; on the Nasdaq, 1,675 issues rose and 1,084 fell for a 1.55-to-1 ratio favoring advancers.

The S&P 500 posted 36 new 52-week highs and 5 new lows; the Nasdaq recorded 38 new highs and 62 new lows.

(Additional reporting by Lewis Krauskopf in New York and Karen Brettell; Editing by Nick Zieminski and Meredith Mazzilli)

Wall Street dips as healthcare lags before Fed statement

NEW YORK (Reuters) – Healthcare and materials stocks pulled Wall Street lower on Tuesday in a second straight day of quiet trading as investors cautiously awaited news from the U.S. Federal Reserve’s two-day policy meeting.

While the Fed is not expected to raise interest rates at its meeting ending on Wednesday, investors will scour Fed Chair Janet Yellen’s comments for clues indicating a path for future rate hikes.

“We’re on auto pilot until we actually get the results of the Fed meeting tomorrow afternoon,” said Art Hogan, chief market strategist at Wunderlich Securities in New York. “It’s not unusual to (be in) wait-and-see mode as you head into a big announcement.”

Ahead of the Fed meeting’s outcome, smaller stocks sold off more than bigger ones as investors sought to reduce risk, said Mohannad Aama, managing director of Beam Capital Management LLC in New York.

U.S. retail sales fell less than expected in February, but a sharp downward revision to January’s data could reignite concerns about the economy’s growth prospects.

The Dow Jones industrial average ended up 22.4 points, or 0.13 percent, at 17,251.53, the S&P 500 lost 3.71 points, or 0.18 percent, to 2,015.93 and the Nasdaq Composite dropped 21.61 points, or 0.45 percent, to 4,728.67.

Healthcare was the worst-performing sector, dropping 1.6 percent.

Valeant Pharmaceuticals International Inc plunged 51.5 percent to $33.51 in its busiest-ever trading day. The Canadian drugmaker cut its 2016 revenue forecast and flagged the risk of defaulting on its debt, eroding investor confidence in the troubled company.

Allergan dropped 3.4 percent to $283. The stock was the biggest drag on the S&P 500.

Materials stocks fell 0.91 percent.

Apple shares climbed 2 percent to $104.58 after Morgan Stanley said March iPhone demand was tracking ahead of expectations. Apple was the biggest boost to the S&P 500.

Mead Johnson rose 11 percent to $83.79 with traders attributing gains to a report that sparked deal chatter.

About 6.5 billion shares changed hands on U.S. exchanges, below the 8.2 billion average over the last 20 sessions.

Declining issues outnumbered advancing ones on the NYSE by 2,256 to 787, for a 2.87-to-1 ratio on the downside; on the Nasdaq, 2,114 issues fell and 707 advanced for a 2.99-to-1 ratio favoring decliners.

The S&P 500 posted 19 new 52-week highs and 1 new low; the Nasdaq recorded 30 new highs and 44 new lows.

(Additional reporting by Abhiram Nandakumar in Bengaluru; Editing by Nick Zieminski and Dan Grebler)

Crude oil drops, dollar gains as markets watch central banks

NEW YORK (Reuters) – Oil prices fell on Monday as Iran dashed hopes of a coordinated production freeze, while the dollar rose ahead of a policy meeting at the U.S. central bank.

A gauge of stocks across the globe ticked up, with Wall Street weighed by commodity shares as Europe rose partly on a positive view of the auto industry.

Attention switched this week to policy decisions from the Bank of Japan, the U.S. Federal Reserve and the Bank of England, among others. They follow last week’s interest rate cut, asset-purchase program extension and new cheap loans for banks pledge at the European Central Bank.

The Fed, which ends its two-day policy meeting on Wednesday, has said it is on track to raise rates gradually in 2016, but doing so will hinge on the health of the economy. Recent data has shown above-forecast jobs creation but wage growth remains a concern.

The euro, which rose last week after ECB President Mario Draghi signaled further rate cuts were unlikely, fell 0.5 percent on Monday to $1.1098. The yen was flat against the greenback while sterling fell 0.6 percent to $1.4302. The dollar index rose 0.5 percent.

“It’s the combination of a market that overextended in the opposite direction because of Draghi’s ‘no more rate cut’ comment and just some corrective natural price action into the risk of (a Fed meeting) that could be a little bit more hawkish,” said Richard Scalone, co-head of foreign exchange at TJM Brokerage in Chicago.

On Wall Street, the S&P 500 was weighed by declines in basic materials and energy shares as commodity prices fell. As they also wait on the release of economic data, including U.S. retail sales, investors continued to interpret the ECB’s move.

“To me, it’s one of those days were the (stock) market is doing its best to digest some of those factors and to see what’s next,” said Steven Baffico, chief executive officer at Four Wood Capital Partners in New York.

Equity volume on U.S. exchanges was the lightest so far this year.

The Dow Jones industrial average rose 15.82 points, or 0.09 percent, to 17,229.13, the S&P 500 lost 2.55 points, or 0.13 percent, to 2,019.64 and the Nasdaq Composite added 1.81 points, or 0.04 percent, to 4,750.28.

The pan-European FTSEurofirst 300 index, which had climbed 2.7 percent on Friday, ended up 0.67 percent with an index of auto and auto parts shares up 1.56 percent. MSCI’s gauge of stocks across major markets ticked up 0.1 percent. Nikkei futures rose 0.4 percent.

Brent crude oil, whose rise has helped buoy stocks in recent weeks, fell below $40 a barrel, as U.S. crude stockpiles continue to mount and Iran maintained little interest in a global production freeze.

“We feel that the bulk of this stronger than expected 5-6 week price advance has been seen and that prices will be shifting into a near term consolidation phase,” said Jim Ritterbusch of Chicago energy consultancy Ritterbusch & Associates.

Brent last traded at $39.61, down 1.9 percent. U.S. crude fell 3 percent to $37.34 per barrel.

The benchmark 10-year U.S. Treasury note rose 4/32 in price to yield 1.9627 percent from 1.977 percent on Friday.

Spot gold fell 1.1 percent, last trading at $1,234. Copper dropped 0.3 percent.

(Additional reporting by Laila Kearney, Dion Rabouin, Barani Krishnan and Gertrude Chavez-Dreyfuss; Editing by Nick Zieminski and Meredith Mazzilli)

Wall Street rallies to highest close of 2016

NEW YORK (Reuters) – Wall Street rallied on Friday in a delayed response to the European Central Bank’s stimulus measures announced Thursday, while higher oil prices drove up energy shares.

The S&P 500 closed at its highest level of the year and above its 200-day moving average for the first time since Dec. 30.

The Dow Jones industrial average rose 218.18 points, or 1.28 percent, to 17,213.31, the S&P 500 gained 32.62 points, or 1.64 percent, to 2,022.19 and the Nasdaq Composite added 86.31 points, or 1.85 percent, to 4,748.47.

(Reporting by Laila Kearney; Editing by Nick Zieminski)

Wall Street ends flat as European Central Bank disappoints

(Reuters) – U.S. stock indexes ended a volatile session little changed on Thursday after the European Central Bank reduced interest rates but ECB chief Mario Draghi confounded investors who expected multiple rate cuts by saying more were unlikely.

Stocks jumped early in the day after the ECB pushed its deposit rate deeper into negative territory and increased its asset-buying program to 80 billion euros a month from 60 billion in an effort to boost growth in the region.

“The world was really, really happy with this mainly because we’re all addicted to zero interest rates,” said Kim Forrest, research analyst at Fort Pitt Capital Group in Pittsburgh. “It’s free money.”

When Draghi said future cuts would happen only under extreme circumstances, investors expecting even lower rates switched their strategy to risk off, Forrest said.

At the same time, she said, fears that lower interest rates in Europe would harm U.S. banks and negatively impact exports by leading to euro devaluation weighed on the market further.

The Dow Jones industrial average fell 5.23 points, or 0.03 percent, to 16,995.13, the S&P 500 gained 0.31 points, or 0.02 percent, to 1,989.57 and the Nasdaq Composite dropped 12.22 points, or 0.26 percent, to 4,662.16.

U.S. jobless claims fell more than expected last week to their lowest levels since October, pointing to sustained strength in the labor market that should further dispel fears of a recession.

The U.S. Federal Reserve has said it is on track to raise interest rates gradually this year, but its decision remains data-dependent. The Fed is to meet on March 15-16.

Shares of Dollar General were up 10.7 percent to $83.23 after it reported better-than-expected same-store sales growth. Rival Dollar Tree was up 4 percent.

Declining issues outnumbered advancing ones on the NYSE by a 1.33-to-1 ratio while on the Nasdaq, a 1.85-to-1 ratio favored decliners.

The S&P 500 posted 30 new 52-week highs and two new lows; the Nasdaq recorded 52 new highs and 70 new lows.

Volume on U.S. exchanges was 8.42 billion shares, compared with the 8.54 billion daily average over the last 20 sessions.

Crude oil prices, a major driver of the market so far this year, delinked from stocks, at least for this session. Brent futures fell more than 2 percent after Reuters reported that a proposed meeting between major oil producers to discuss an output cut was unlikely to take place without Iran’s participation. U.S. crude fell 1 percent.

(Reporting by Laila Kearney; Editing by Dan Grebler)

Oil rally lifts Wall Street again, extending tight correlation

(Reuters) – U.S. stocks rose in low volume on Wednesday, led once more by the direction of the price of oil and energy sector shares.

Crude oil and U.S. equity prices have been linked for much of 2016 to a degree that has surprised many investors. Wednesday’s market action extended that trend, with WTI crude rising nearly 5 percent and the S&P 500 energy sector up 1.5 percent. Chevron jumped 4.6 percent to $92.82 and gave the biggest boost to the energy sector.

“It’s not about oil being a barometer of the global economy,” said Art Hogan, chief market strategist at Wunderlich Securities in New York. “A lot of it has to do with psychology.”

U.S. crude and the S&P 500 have been directionally correlated on all but six trading days this year, according to Wunderlich data.

“Stability in that asset class (oil) for a period of time will allow for the correlation to break down,” said Hogan.

Since Feb. 11, the S&P 500 has gained 8.8 percent, but it is still down 2.7 percent for the year.

The Dow Jones industrial average rose 36.26 points, or 0.21 percent, to 17,000.36, the S&P 500 gained 10 points, or 0.51 percent, to 1,989.26 and the Nasdaq Composite added 25.55 points, or 0.55 percent, to 4,674.38.

In a week with a thin economic data calendar, markets will turn to the European Central Bank, which is expected to further ease monetary policy on Thursday.

Biotechnology stocks came under pressure a day after the U.S. government proposed a test program that would lower incentives to use higher-priced drugs when alternative treatments are available.

The Nasdaq Biotechnology sector fell 1.2 percent with Regeneron Pharmaceuticals down 5.1 percent to $374.75 as the largest decliner on the Nasdaq 100.

Chipotle Mexican Grill lost 3.4 percent to $506.63. Already reeling from several food-borne illnesses, the company temporarily shut a Massachusetts restaurant after four employees fell sick.

Advancing issues outnumbered declining ones on the NYSE on a 2.3-to-1 ratio while on the Nasdaq a 1.50-to-1 ratio favored advancers.

The S&P 500 posted 27 new 52-week highs and 1 new lows; the Nasdaq recorded 48 new highs and 41 new lows.

About 7.5 billion shares changed hands in U.S. exchanges, compared with the average 8.67 billion in the previous 20 sessions.

(Reporting by Rodrigo Campos; Editing by Nick Zieminski)

Wall Street bids Happy Birthday to bull market for stocks

NEW YORK (Reuters) – Wednesday marks the seven-year anniversary of the start of the current bull market for U.S. stocks, one that has shaped up to be more notable for its duration than its intensity.

The current bull run of 84 months is the third-longest on record, with the average lasting slightly less than 59 months, according to S&P Dow Jones Indices.

Though also above average, the gains are somewhat less impressive, with the S&P 500 stock index up 193 percent, fifth among 13 bull markets since the Great Depression. The average bull market climb is 167 percent.

The Dow Jones industrial average and Nasdaq Composite, also bottomed on March 9, 2009. They grew about 159 percent and 266 percent, respectively, since then.

The bull started from a low point after the Great Recession and the financial crisis pushed stocks down 56.3 percent from the S&P’s October 2007 high of 1,565.15 to 676.53.

A technicality might make Wednesday’s whole birthday celebration moot. The S&P index actually peaked on May 21 and has yet to go above that. Should it fall more than 20 percent from that high of 2,130.82, it will confirm that the great bull actually ended back in May, and the market has technically been in a bear since then.

To confirm that the bull rolls on, the S&P will have to eclipse that high and continue its upward trajectory.

That’s far from certain. Stocks have struggled early in the year, with the S&P off 3.2 percent for 2016 and 3.9 percent below the May high. With relatively weak earnings and some concerns about global growth, it’s not clear stocks can resume their upward march.

“It has been long, it has been at times grueling, and it is tired,” said Peter Kenny, senior market strategist at Global Markets Advisory Group, in Berkeley Heights, New Jersey.

The market has room to move up, Kenny said, if corporate earnings and revenues can show signs of growth that would reveal stronger economic growth.

That would justify higher share prices for investors – and a more enthusiastic birthday celebration.

(Reporting by Chuck Mikolajczak; editing by Linda Stern and Nick Zieminski)

Oil drop, China data drag Wall Street lower

(Reuters) – U.S. stocks ended near the lows of the day on Tuesday as energy shares tumbled alongside the price of oil and soft Chinese trade data rekindled fears that the global economy is weaker than anticipated.

U.S. crude futures fell more than 4 percent in post-settlement trading, in their largest daily decline since bottoming so far for the year on Feb. 11. Since that low, the U.S. barrel of crude rose as much as 45.5 percent.

Despite the rebound in crude prices, oversupply and expectations of weak demand from China have weighed on investor sentiment. The price of oil and equity indexes have been strongly correlated this year.

“While I’d love to see oil break out, I don’t think it will happen yet,” said Uri Landesman, president at Platinum Partners in New York.

Goldman Sachs analysts said the recent rally in oil was premature as prices would need to remain lower for longer to help rebalance the market later in the year.

Shares of Dow components Exxon and Chevron fell more than 2 percent. The S&P 500 energy index dropped 4.1 percent.

China’s February trade performance was far worse than economists had expected, with exports tumbling the most in more than six years. The 16th-straight monthly decline in imports weighed on stocks in the basic materials sector, which was down 2 percent.

Landesman said the S&P 500 is still in a downward trend and will likely stall near the 2,000 level, heading toward support near 1,825 before testing the record set last May above 2,100. The index on Monday closed above 2,000 for the first time since Jan. 5.

“It will be trading in that channel based on slow global (economic) growth prospects,” Landesman said.

The Dow Jones industrial average fell 109.85 points, or 0.64 percent, to 16,964.1, the S&P 500 lost 22.5 points, or 1.12 percent, to 1,979.26 and the Nasdaq Composite dropped 59.43 points, or 1.26 percent, to 4,648.83.

The largest percentage decliner on the Nasdaq 100 was Micron, down 7.9 percent to $10.66.

Shake Shack tumbled 11.8 percent, falling to $37.23 after the burger chain issued disappointing results and forecast.

Shares of Urban Outfitters were up 16.1 percent at $32.69, after better-than-expected sales for its Free People brand.

Declining issues outnumbered advancing ones on the NYSE by a ratio of 3.2-to-1 and on the Nasdaq a 3.5-to-1 ratio favored decliners.

The S&P 500 posted 18 new 52-week highs and 1 new low; the Nasdaq recorded 36 new highs and 37 new lows.

About 8.5 billion shares changed hands in U.S. exchanges, below the 8.77 billion average over the last 20 sessions.

(Reporting by Rodrigo Campos; Editing by Nick Zieminski)