The collective shedding of billions of pounds thanks to GLP-1 drugs is poised reshuffle trillions of dollars in the stock market and economy. In a streak noted in an intraday report by BTIG chief market technician Jonathan Krinsky, the last time the Nasdaq-100 failed to advance on the first day of the week was back on June 26. The string of gains even includes Labor Day weekend, when the first day of trading was Tuesday, Sept. 5, and the week of the 4th of July, when Independence Day fell on a Tuesday and interrupted trading. Stocks shook off early losses Friday, finishing higher after investors digested the latest jobs report. Bond prices also recovered, with the 10-year Treasury yield finishing with gains after earlier climbing to fresh heights. Year to date, 88 companies have debuted on the public markets, up 37.5% from this point a year ago.
- “Even with a large step down to below 5.5%, inflation merely settles back into the upper half of the RBI’s 4+/-2% inflation target,” Mizuho’s head of economics and strategy Vishnu Varathan wrote in a daily note.
- “Municipal bonds have historically seen negative performance during September, and to a lesser extent, October,” wrote municipal analyst Dorian Jamison.
- The data follows a stronger-than-expected producer price index reading for September.
- This was its lowest level since Sept. 12, when WTI traded as low as $87.22.
- While it’s a “good deal” for Exxon from a historical valuation perspective, Molchanov noted that it’s important to also recognize that Exxon’s own stock has been trading at a much lower valuation than it used to.
- The move erased some of Wednesday’s declines, the price of oil still remains below Monday’s high and levels from late September, when WTI traded above $90 per barrel.
This is the highest the yield on the benchmark U.S. 10-year note has climbed since August 15, 2007, when it reached 4.752%. Regional bank stocks were also under pressure, with the SPDR S&P Regional Banking ETF (KRE) falling 2.3%. Higher rates were one of the causes of the failure of Silicon Valley Bank and other regional lenders this spring.
Dow and S&P 500 log gains for the week as blue-chip gauge snaps 3-week losing streak
Shares of Walgreens traded 7% higher on Thursday after the pharmacy chain reported narrower losses and progress in its cost-cutting plans. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Wall Street-bullish contrarian trading bias. Like the Swiss Market Index (SMI), the Dow Jones is a price index.
- The benchmark 10-year Treasury yield hit its highest level in 16 years Tuesday, as fears of higher Federal Reserve interest rates to fight inflation rattled Wall Street.
- “We are still counting on moderating inflation to stop the beatings in the bond market.”
- The Dow Jones Industrial Average adding more than 300 points, reaching a new 52-week closing high.
- “Interestingly, Tamar field-exposed companies are down the least,” according to Jefferies analyst Mark Wilson.
- “This may be the soft landing, it doesn’t feel very good, but this may be what it is, that we just muddle along for an entire year and the market stays fairly range bound,” he said.
Microsoft said it would contest the claims and will take the issue to court if necessary. Simpson added that he is selling the stock on account of its underperformance compared vantage fx broker review to its relative price movement. A bumper crop of companies made their initial public offerings this year, but many of them have since fallen short of their IPO price.
Why Treasurys could give the U.S. stock market a green light for a year-end rally
Hong Kong’s Hang Seng Index rose more than 2% in afternoon trade, leading wider gains in the region, boosted by financial stocks. “Buy the dip in the S&P 500,” wrote Stephen Gallagher, the bank’s U.S. head of research. “Micro drivers are strong and should speed up the profit cycle over the next six months before the start of a consumer downturn. Overweight S&P 500 vs Russell introduction to momentum trading 2000, Long Nasdaq Equal Weighted on US-10yr yield consolidation.” The major averages fell to session lows in afternoon trading as Treasury yields marched higher. The Dow is now down more than 200 points, while the S&P 500 and Nasdaq have lost 0.8% and 0.7%, respectively. Equities continue to head south “as the market realizes that yields will move higher,” he said.
Last November, munis had a return of 4.7%, the best single month of performance going back to 2018, Jamison wrote. Utilities fell 1.3%, while health-care stocks managed to gain 0.37%. A 11% year-to-date selloff means that shares of Warner Music Group are now trading at an attractive valuation, according to currency trading roots UBS. Spot gold was recently down 0.4% at $1,819.50 per ounce, falling for a seventh consecutive session to its lowest since March 9. Eli Lilly shares dove more than 3% after the pharmaceutical giant announced plans to buy cancer treatment company Point Biopharma for about $1.4 billion, or $12.50 a share.
Stock Market News Today, 10/05/23 – Stocks Fall amid Fedspeak, Souring Sentiment
“We view WRBY’s valuation as highly attractive vs. comps, on a growth-adjusted basis,” wrote analyst Mark Mahaney. “A highly competitive optical vision market and some uncertainty over WRBY’s long-term sustained profitability potential remain real risks, but we see these risks as more than fully reflected in current valuation.” Consumer discretionary stocks are the hardest hit industry group of the 11 major sectors in the S&P 500 Tuesday, falling 2.6% late in the day vs the S&P 500’s 1.4% decline. While it’s a sizable leg down, it’s notably off the toughest days of the year. The worst session of the year took place on Feb. 21, when the 30-stock index dropped 697 points, or 2.1%.
News & Analysis
With Tuesday’s losses, the Dow went into the red for the year, off by 0.4%. Proxy votes came in at 91.66% in favour this morning, a slide shown to investors at a meeting in Melbourne showed. The RBA sees a further loosening in the labour market as a necessary condition for inflation to return to target by late 2025. Aird points out that the RBA’s forward guidance has been “clear and consistent” that some further tightening of monetary policy may be required to ensure inflation stays within its target. There is ongoing chatter that Australia might get a surprise Melbourne Cup rate hike.
Dow Jones Industrial Average DJIA
She says the Fed looks to have changed its call on interest rates following its September meeting. The worsening surging prices have sapped wages and savings and pushed two out of every five people in Argentina below the poverty line. The latest data on arrivals and departures out of Australia is out today. Microsoft — The tech company dipped 0.5%on reports that the Internal Revenue Service is seeking an additional $28.9 billion in taxes from the company.
The next worst was Jan. 18, when the Dow fell 614 points, or 1.8%. “Overall, we believe investors should view quarterly deliveries as a negative.” US stocks plunged on Tuesday as interest rates surged to a new cycle-high, hitting levels not seen since August 2007.
Dow opens lower Tuesday
And then on Thursday, we have jobs data coming out from the ABS, which will give us an indication of how the economy and workers are tracking broadly. Commonwealth’s Gareth Aird was the latest to weigh into this debate this week, with the economist saying a rate hike is “live” for either November or December, albeit still at a low chance. The latest inflation rate data just came out for the South American country.
The 10-year Treasury yield touched 4.8%, reaching its highest level in 16 years. The benchmark yield has surged in the past month as the Federal Reserve pledged to keep interest rates at a higher level for longer. The 30-year Treasury yield hit 4.925%, also the highest since 2007.
The shares included in it are weighted according to price; the index level represents the average of the shares included in it. Asian indexes were mostly lower, with the Hang Seng leading losses, amid concerns about China’s property sector. The Journal’s Dion Rabouin discussed the latest report in a video earlier today. “We think the market is under appreciating AB’s industry-leading organic fee growth prospects and its differentiated operating margin expansion, resulting in a more durable EPS growth outlook over the next 2 years,” Blostein said. The Dow Jones Industrial Average fell more than 100 points at the start of Tuesday’s trading session. Similarly, December silver contracts fell to $20.87 an ounce Tuesday, also the lowest since March.
The benchmark 10-year Treasury yield hit its highest level in 16 years Tuesday, as fears of higher Federal Reserve interest rates to fight inflation rattled Wall Street. Over the past month, the benchmark rate has jumped more than 50 basis points. Treasury yields jumped on the back of fresh inflation data Thursday. The benchmark 10-year rate moved nearly 11 basis points higher to 4.70%. The 2-year Treasury yield was trading at 5.06% after rising by more than 6 basis points.