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Exxon Mobil raises dividend by a penny, to boost the implied yield to nearly 5.5%

Exxon Mobil Corp. said Wednesday it will raise its quarterly dividend by a penny, to 88 cents a share from 87 cents. The new dividend will be payable Dec. 10 to shareholders of record on Nov. 12. The stock slumped 2.5% in afternoon trading, amid a broad slump in energy stocks as crude oil futures shed 2.3%. Based on current stock prices, Exxon Mobil's new annual dividend rate implies a dividend yield of 5.48%, which compares with the yield for the SPDR Energy Select Sector ETF of 3.75% and the implied yield for the S&P 500 of 1.32%. Exxon Mobil's new implied yield would make it the eighth-highest yielding stock in the S&P 500. There had been some question as to whether Exxon Mobil would raise its dividend or not this year, with Chief Executive Darren Woods assuring investors in July that the oil giant feels a "very strong commitment" toward a reliable and growing dividend.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatch2 hr. 42 min. ago Related News

October to See 3 Bitcoin Futures ETFs? Let"s Explore

October 2021 will be long-remembered in the investing world for the launch of bitcoin futures ETFs. October 2021 will be long-remembered in the investing world for the launch of bitcoin futures ETFs. ProShares Bitcoin Strategy ETF BITO, the first US listed bitcoin ETF has started trading on Oct 19, making the world’s biggest cryptocurrency available in a tax-efficient wrapper to investors via any brokerage account.VanEck will join ProShares in launching a bitcoin futures exchange-traded fund (XBTF). Plus, Valkyrie Investments’s bitcoin futures exchange-traded fund also won the green signal of the U.S. Securities and Exchange Commission. The fund (BTFD) started trading from Oct 22.These are great success from the issuers’ point of view. Despite the humongous success witnessed lately, regulatory concerns have always been a hurdle for bitcoin. There have been repeated attempts in the past by ETF issuers to bring an exchange-traded-product on the cryptocurrency. But none received the SEC nod up until October 2021. The SEC was seemingly looking for more proof of safety in this trade (read: Bitcoin Matches SPY ETF in 1H: What Lies in 2H of 2021?).More Futures-Based ETF Launches Ahead?SEC Chair Gary Gensler indicated his preference for futures tracking ETFs, created under the existing 1940 Investment Company Act, which provide considerable investor protection. Futures-based products are however not as efficient as physically-based products in general since derivatives add another layer of complexity, with the need to rollover. They also are not very good at tracking spot prices (read: Bitcoin & Blockchain ETFs: What Investors Should Know).The likelihood the ETF’s listing appeared to push up the price of bitcoin over the past week. Bitcoin hit a record level of $66K on ETF news. Several companies, including Invesco have applied to bring about similar ETFs that could follow ProShares into the market in the weeks ahead.In the absence of an ETF before, investors used to track products like the Grayscale Bitcoin Trust (GBTC) that can trade at a significant discount or premium to their NAV. But these are only available to qualified wealthy investors or in over-the-counter markets.Any More Downsides in the Cards?Environmental concerns may be a downside risk for the fund. Per a CNBC article, questions regarding the bitcoin’s impact on the environment could be another issue for the cryptocurrency. “Bitcoin mining equipment requires lots of electricity to run, and bitcoin’s energy consumption has risen considerably over the years in tandem with its price. While bitcoin’s critics have long warned of its huge carbon footprint, Tesla CEO Elon Musk brought the issue back to the fore this year,” the article noted.ETFs in Focus If you are still unsure about investing in BITO, XBTF and BTFD and want to wait for more futures-based ETF launches, stocks that are related to bitcoin mining or trading may entice you as they play an indirect role in betting on this crypto asset.Coinbase Global Inc. COIN is a U.S. company that operates a cryptocurrency exchange platform without an official physical headquarter. Coinbase has exposure to funds like VanEck Vectors Digital Transformation ETF DAPP, Simplify Volt Fintech Disruption ETF (VFIN) and Renaissance IPO ETF (IPO). Blockchain ETFs like Amplify Transformational Data Sharing ETF BLOK should also be watched by investors interested in bitcoin.Then there is crypto innovators ETF namely Bitwise Crypto Industry Innovators ETF BITQ. The underlying Bitwise Crypto Innovators 30 Index measures the performance of companies involved in servicing the cryptocurrency markets, including crypto mining firms, crypto mining equipment suppliers, crypto financial services companies, or other financial institutions servicing primarily crypto-related clientele. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amplify Transformational Data Sharing ETF (BLOK): ETF Research Reports Coinbase Global, Inc. (COIN): Free Stock Analysis Report VanEck Digital Transformation ETF (DAPP): ETF Research Reports Bitwise Crypto Industry Innovators ETF (BITQ): ETF Research Reports ProShares Bitcoin Strategy ETF (BITO): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks4 hr. 41 min. ago Related News

Futures Movers: Oil prices end lower on rise in U.S. crude supplies, potential talks on Iran nuclear deal

Oil futures decline on Wednesday, with U.S. prices pulling back from a seven-year high after U.S. government data show a rise in domestic crude inventories, along with a drop in stockpiles at a key crude delivery hub......»»

Category: topSource: marketwatch6 hr. 14 min. ago Related News

U.S. oil futures fall by more than 2%; natural-gas futures end at more than 3-week high

Oil futures settled with a loss of more than 2% on Wednesday after the Energy Information Administration reported a 4.3 million-barrel weekly climb in U.S. crude inventories and amid news that Iran may soon renew talks with world powers on a nuclear deal. Iran's chief negotiator, Ali Bagheri, said Wednesday that Iran will return to nuclear discussions before the end of November, according to The Wall Street Journal. "If this leads to the eventual withdrawal of U.S. sanctions, Iranian oil exports will rise, ending the threat of a supply shortage that has been partly the reason behind the big oil rally," said Fawad Razaqzada, market analyst at ThinkMarkets, in a market update. West Texas Intermediate crude for December delivery fell $1.99, or nearly 2.4%, to settle at $82.66 a barrel on the New York Mercantile Exchange. Natural-gas prices, meanwhile, rallied, getting a boost from some forecasts for colder weather as the November contracts expired. November natural gas rose 32 cents, or 5.4%, to settle at $6.202 per million British thermal units, the highest in just over three weeks. The new front month December contract added 20 cents, or almost 3.3%, to $6.198 per million Btus.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatch6 hr. 42 min. ago Related News

Gold futures finish higher, but stay below the key $1,800 mark

Gold futures climbed on Wednesday, but finished below the key $1,800 mark for a second straight session. "Gold should stabilize here and might not do much of anything" until after both the monetary policy decision from the European Central Bank on Thursday and the U.S. Federal Reserve on Nov. 3, said Edward Moya, senior market analyst at Oanda. December gold climbed by $5.40, or 0.3%, to settle at $1,798.80 an ounce following a loss of 0.7% on Tuesday.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatch7 hr. 30 min. ago Related News

Oil Drops As Iran Says Nuclear Talks With West To Resume Next Month

Oil Drops As Iran Says Nuclear Talks With West To Resume Next Month After months of stalling and threats of walking away from nuclear negotiations which were last held in Vienna in June, there's been a reported major diplomatic breakthrough between Iran and EU mediators in Brussels on Wednesday. Though not all parties have yet to confirm, the JCPOA nuclear talks are set to finally resume by the end of November.  "We agree to start negotiations before the end of November. Exact date would be announced in the course of the next week," Ali Bagheri, Tehran's chief negotiator, announced on Twitter. He cited "a very serious & constructive dialog" with EU foreign policy Deputy Secretary General Enrique Mora, and said an "exact date would be announced in the course of the next week." Iran's Foreign Minister Hossein Amir Abdollahian (Left). United Nations via AP. Iran has in recent weeks signaled multiple times it's willing to return to the Vienna process, which is aimed at reviving the 2015 nuclear deal which the Trump administration had pulled out of in 2018. Iranian leaders have consistently maintained that the US must immediately ease sanctions in order to show 'good faith' - given it's Washington that unilaterally pulled out of the deal in the first place.  As AFP reviews, "Joe Biden has said he is ready to re-enter the agreement, so long as Iran meets key preconditions including full compliance with the deal whose terms it has repeatedly violated by ramping up nuclear activities since the US left the pact." Iran has seemed to use enrichment activity as leverage for negotiations with the West, with the International Atomic Agency (IAEA) this week observing greatly expanded activity at the Natanz Uranium Enrichment Facility:  Iran has taken another step to increase its enrichment activities in purifying uranium beyond 20 percent, Reuters reported Monday, citing a report by the International Atomic Agency. The move at Iran’s Natanz plant is likely aimed at building knowledge of the refinement process, the report said, as the product from changes to centrifuges is not being kept. The IAEA wrote in a report that "On 25 October 2021, the Agency verified that Iran began feeding (uranium hexafluoride gas) enriched up to 20% U-235 into a single IR-6 centrifuge in R&D line 2 at PFEP,” the IAEA said in its report." At the same time Tehran is further demanding the unfreezing of Iranian assets abroad: "(US President Joe) Biden has to put his goodwill into practice by for instance releasing $10 billion of Iran’s blocked assets," Iranian Foreign Minister Hossein Amirabdollahian said recently on state TV. This month Washington too has been making veiled threats which could serve to permanently derail Vienna talks. The Biden administration has recently agreed with Israel that "other options" will be pursued against Iran should Vienna talks fail - a clearly veiled reference to military action or else covert espionage.  Amid the global energy crunch and as oil futures continue climbing - on Tuesday hitting seven-year highs - the benchmark price edged lower Wednesday on news that Iran will return to the negotiating table, with futures in New York falling as much as 2.2% on Wednesday. Tyler Durden Wed, 10/27/2021 - 13:30.....»»

Category: blogSource: zerohedge7 hr. 57 min. ago Related News

Aerospace & Defense Struggle to Launch with Lockheed and Raytheon

With no big tech stocks announcing before the open, the equity futures markets are mixed as investors consider other sectors. However, yesterday’s big tech had plenty of news that took the S&P 500 (SPX) to another record high. Let’s look at some of this morning’s announcements and then some of yesterday’s newsmakers.   A couple of S&P 500 companies announced earnings this morning. First, McDonald’s (NYSE: MCD) reported higher than expected earnings and revenue and was trading more than 3% higher before the opening bell. Second, Coca-Cola (NYSE: KO) was also trading 2.86% higher ahead of the open after beating on revenue and earnings. As Americans are getting back to work, apparently, they want a Big Mac and Coke.   Moving from food to cars, General Motors (NYSE: GM) was up 3% in premarket trading and then fell into the red. The company beat on earnings but fell short on revenue. Ford (NYSE: F) reports after the close. After the bell on Tuesday, a rush of earnings was announced that lit up the CNBC app on my thinkorswim® platform. Commentators struggled to stay on top of them, and they have teams of production assistants. So, I’m just going to touch on a few.  Big Tech Biggies This week is Big Tech week, and Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOGL) are two of the biggest. Both reported better-than-expected earnings and revenues after Wednesday’s close, but they had different market reactions. Microsoft was up almost 2% in after-hours trading as the company cashed in on a global shift to remote work. The need for cloud services was a big boost for Microsoft as the product grew 50% in the quarter. In addition to the need for cloud, the work-from-home crowd also needed more personal computers with Windows software, which grew 36% from the previous year. However, Xbox sales were lower because of supply chain issues. Some investors are worried that the company won’t be able to meet holiday demand. Alphabet fell about 1% in after-hours trading despite the good news. The company nearly doubled its third-quarter profits because smaller businesses are spending heavily on digital ads. The company is seen as a beneficiary of the “reopening trade” because ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzinga10 hr. 13 min. ago Related News

Bitcoin sinks below $60,000 to a 2-week low as enthusiasm following launch of futures ETF subsides

Some investors cashed in on the cryptocurrency's all-time high prices that followed the debut of the first bitcoin futures ETF. Bitcoin balloon. Andriy Onufriyenko Andriy Onufriyenko Bitcoin fell on Wednesday after riding a wave of enthusiasm since last week following the launch of a futures ETF. The cryptocurrency traded below $60,000, lowest intraday price in two weeks, Bloomberg said. Bitcoin is still up more than 30% in the last month. Bitcoin slipped below $60,000 on Wednesday - its lowest price in two weeks - as investors cash in on the cryptocurrency's recent rallies to all-time highs. Investors pushed bitcoin to new all-time highs his month, driven by excitement over the first bitcoin-linked exchange-traded funds launched last week by ProShares. The ProShares Bitcoin Strategy ETF brought in more than half a billion dollars in assets on its launch day alone, and was the fastest ETF to accumulate $1 billion in assets under management. Investors pushed bitcoin's price to an all-time high around $67,000 following the launch. Since then, investors have started to take gains, Coindesk reported. Bitcoin traded at $58,770.34 at 8:24 a.m. ET. That's the lowest intraday price in two weeks, according to Bloomberg. Bitcoin's total liquidations surpassed $700 million Tuesday, the highest level since September, according to data from bybt.com. Despite the liquidations, the cryptocurrency is still up 36% over the past 30 days. The launch of the bitcoin-linked funds has prompted analysts to estimate the cryptocurrency's price could surge past $100,000 on increasing investor demand. Read the original article on Business Insider.....»»

Category: topSource: businessinsider10 hr. 13 min. ago Related News

SIGN UP FOR OUR LIVE EVENT ON NOVEMBER 17: The future of crypto and its path to mass adoption - CLONE

Join us live on November 17 for a webinar on the investing opportunities and challenges that arise as bitcoin and altcoins become more mainstream. Bitcoin and smaller altcoins continue to advance from the fringes into the mainstream of global finance. Caitlin Long; Christopher Giancarlo; Insider Bitcoin and smaller altcoins continue to advance from the fringes into the mainstream of finance. As adoption grows, investment opportunities will grow - and so will regulatory roadblocks. Join us on November 17 at 1 p.m. ET for a live event on the future of crypto adoption and the role regulation will play. You can sign up here if you're a subscriber. Cryptocurrencies continue to advance from the fringes into the mainstream of global finance and investing.But for the uninitiated, crypto investing is a complicated minefield. And even for those who are familiar, the legitimacy of the various options out there is a major concern. That's where regulation comes in, both as a green light that could pave the way for wider crypto adoption, and as a threat that could pull the plug on several crypto projects. There's no shortage of demand for regulated investment avenues. For proof, look no further than the recent launch of ProShares' Bitcoin Strategy exchange-traded fund. On its first trading day, the futures-linked fund quickly pulled in $1 billion in assets at the fastest pace on record for an ETF. And after the second launch of an ETF by Valkyrie last week, firms like VanEck and WisdomTree are waiting for the coveted green light from regulators to launch their own. What do these product launches signal about the future of crypto, including the thousands of altcoins that are jostling for relevance and investor cash? How can regulation do more good for investors than harm? What kinds of opportunities will open up once the Securities and Exchange Commission approves various spot ETFs in its pipeline? And, what are the risks to investors if the SEC and other regulators take a harder stance to protect investors? Please join us for a live virtual conversation on these topics and more, moderated by Insider's Laila Hmaidan, reporter, and Akin Oyedele, senior editor for investing. The hour-long chat is scheduled for November 17 at 1 p.m. ET, (10 a.m. PT). The experts will also be taking audience questions.Our guests include: Christopher Giancarlo, former chairman of the Commodity Futures Trading CommissionCaitlin Long, founder and CEO at Avanti Financial GroupYou can sign up here if you're a subscriber.Read the original article on Business Insider.....»»

Category: topSource: businessinsider10 hr. 13 min. ago Related News

The Bond Market "Paradox"

The Bond Market "Paradox" Authored by Peter Tchir via Academy Securities, I don’t remember a lot from the 90’s, but one memory has come back with vivid clarity. Working with friends and colleagues, who were taking start-up projections and being “conservative” yet completely impossible. Yes, in their models, users slowed from 200% growth to 50% growth a few years down the road, but their projections still gave them more users than humans within a few years. That reminds me of legend about grains of rice and a chessboard. According to legend, a ruler asked a servant what they wanted as a reward for some incredible deed. The person asked for one grain of rice to be placed on the first spot on the checkerboard. Two on the second. Four on the third and so on. Doubling the number of grains for each new space on the checkerboard. While that seemed like an absurdly low reward to the ruler, who was probably expecting to be asked to pay his weight in gold (too bad we didn’t have bitcoin back then), but it turns out to be an impossibly large number. Which brings me to Tesla’s recent price action. Up 12% on Monday, up 7% on Tuesday morning before falling by almost 9% from that level. While at a glance, the percentage moves are on the high side, it is the market cap moves that are simply astounding. 100’s of billions of market cap are being created and sometimes lost, in hours. Even as someone who doesn’t believe in efficient markets, that seems bizarre, at best. According to the WSJ, $16.1 billion of option premium was traded on Monday on Tesla. Which was more than the next 99 most actively traded option tickers combined! What is amazing about that is it includes contracts on S&P and Nasdaq futures and ETFs like SPY and QQQ. I assume they only publish the top 100, so if the value of Tesla option contracts wasn’t more than the value of every other option contract traded on Monday, I’d be surprised. Whether we are at a blow-off top or not, remains to be seen, but Those sorts of market cap swings seem inexplicable Those sorts of option trading volumes seem inexplicable But since they happened, the inexplicable must be explicable, I just wish I had a good explanation other than it is a gambler’s market and true liquidity, low at the best of times, is being severely tested by gamma squeezes and portfolios need to be hardened against that (or positioned to take advantage). The Bond Market “Paradox” We went into more detail on this in Sunday’s “Clear as Mud” but the following seems to be happening: The market is pricing in the Fed hiking sooner. This is causing yields at the front end to rise. I think it is the wrong thing for the market to do, but I think the headlines will help that trade move along (so I’m betting on something happening that I don’t think should happen, but it is also too early to get in the way of the theme). I continue to believe that the next act in the play of not hiking will be to switch from talking “transitory” to talking “long term averages” but that isn’t the narrative the market is fixated on, at least not yet. The long end rallies on Fed hikes. The simple narrative would be that the Fed is going to raise rates, which causes bond yields to rise. That is currently not the reaction, as bond investors are sniffing out the potential for the Fed to slow growth too early, or at exactly the wrong time. So fears of a more hawkish fed are driving curves flatter in a “pivot” sort of format (this morning, the pivot point is around 5 years, with bonds less than 5 years to maturity are seeing yields rise, while those longer than 6 years, are seeing yields fall). Stocks No Longer “Love” Lower Long-Bond Yields. Parts of the stock market that had been positively correlated to bond prices are now “normalizing” and trading as though they are negatively correlated. That makes sense, because if longer dated bond yields are going lower because of fear of the Fed snuffing growth out, it just isn’t good for the market (unlike when yields are going lower because the Fed is buying so much and there is no material threat of sustained inflation). Longer dated bond yields could benefit from a “risk-off” type of move, which the market seems far less positioned for today, than they were a few weeks ago. I do miss the 90’s, but those are stories for another day. Tyler Durden Wed, 10/27/2021 - 10:46.....»»

Category: blogSource: zerohedge10 hr. 41 min. ago Related News

Metals Stocks: Gold futures move higher as dollar, stocks and yields retreat

Gold futures move higher on Wednesday, finding support from weakness in the U.S. dollar and a retreat in Treasury yields as global stocks slip, amid rising geopolitical tensions......»»

Category: topSource: marketwatch10 hr. 58 min. ago Related News

Stocks of earnings reporters would add nearly 80 points to the Dow"s price

Four of the five Dow Jones Industrial Average components are contributing to the index's gains, as they would roughly add a net 77 points the Dow's price. Meanwhile, Dow futures rose 36 points, or 0.1%, ahead of the open. The biggest gainer was Coca-Cola Co.'s stock , which rose 2.7%, with the implied price gain adding about 10 points to the Dow's price, after better-than-expected third-quarter results. Next was McDonald's Corp.'s stock , which gained 2.6% ahead of the open to add about 40 points to the Dow after upbeat 3Q results. Elsewhere, Microsoft Corp. shares rose 1.8% to add about 37 Dow points after record 1Q results, and Boeing Co.'s stock tacked on 2.1% to boost the Dow by 29 points despite a 3Q miss. Meanwhile, Visa Inc.'s stock was the biggest Dow loser in the premarket after 4Q results, as it fell 2.6% to shave about 39 points off the Dow's price.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatch11 hr. 42 min. ago Related News

Metals Stocks: Gold futures flat even as dollar, stocks and yields retreat

Gold futures see choppy trade on Wednesday despite weakness in the U.S. dollar and a retreat in Treasury yields as global stocks slip, amid rising geopolitical tensions......»»

Category: topSource: marketwatch12 hr. 30 min. ago Related News

Market Snapshot: U.S. stock futures edge higher as earnings roll in from Boeing, McDonald’s and GM

On the heels of another record session for the Dow and S&P 500, stock-index futures edge higher as investors sift through a heavy slate of corporate results......»»

Category: topSource: marketwatch12 hr. 30 min. ago Related News

Futures Slip From All Time High Amid Fresh China, Growth, Valuation Concerns

Futures Slip From All Time High Amid Fresh China, Growth, Valuation Concerns One day after US equity futures hit an all time high, rising to a record 4,590, risk sentiment has reversed and overnight index futures fluctuated and stocks in Europe retreated from a near-record on Wednesday after a flare up in U.S.-China tensions, signs of further regulatory crackdowns from Beijing, a decline in commodity prices, renewed concerns about economic growth and a rise in short-dated U.S. Treasury yields doused the equity market rally on Wednesday. At 7:45 a.m. ET, Dow e-minis were up 27 points, or 0.07%, S&P 500 e-minis were down 2.50 points, or -0.06%, and Nasdaq 100 e-minis were down 15.5 points, or 0.09%. Bonds and the dollar gained and bitcoin stumbled. The overnight losses started earlier in Asia, where tech stocks suffered hefty falls after China’s internet watchdog said it planned stricter registration rules for younger net users, while Chinese tech shares slid on concerns about more scrutiny from Washington after the U.S. banned China Telecom’s American business. U.S. futures also turned negative as the bullish mood over Tuesday’s forecast-beating results from Google owner Alphabet and Microsoft started to wane. Shares of energy firms including Exxon and Chevron tracked lower oil prices, while major lenders such as Bank of America slipped on a flattening U.S. yield curve. Microsoft Corp rose 2.1% in premarket trading after it forecast a strong end to the calendar year, thanks to its booming cloud business. Twitter gained 1.4% after the social networking site’s quarterly revenue grew 37% and avoided the brunt of Apple Inc’s privacy changes on advertising that hobbled its rivals. Google owner Alphabet also reported record quarterly profit for the third straight quarter on a surge in ad sales. However, its shares were down 0.6% after rising nearly 59% so far this year. Here are some of the biggest movers today: Microsoft (MSFT US) shares gain 2.2% in premarket after first- quarter results that analysts said were very strong across the board, showing scale and justifying the valuation of the software giant. Alphabet (GOOGL US) rises 1.3% after 3Q earnings earned a mostly positive reception from analysts, with at least three raising their price targets on the Google parent. Twitter (TWTR US) adds 2% amid resilient third-quarter sales at the social media company as it weathers Apple’s new limits on consumer data collection. Enphase Energy (ENPH US) gains 13% after its 3Q results and 4Q forecasts beat estimates. Analysts await more clarity on supply chain constraints. Robinhood (HOOD US) slumps 12% as some analysts cut price targets after the retail brokerage reported 3Q revenue that missed estimates and flagged further weakness in 4Q. Visa (V US) falls 2.4% as analysts flag a disappointing outlook from the payments company. Texas Instruments (TXN US) declined 4% after a forecast that may disappoint some investors who are concerned about a potential slowdown in demand for electronic components. Watch peers for a readacross. Angion (ANGN US) plunges 55% after company said a kidney transplant drug failed to meet primary end points in a phase three trial. European partner Vifor (VIFN SW) slips 6%. “While some prominent earnings misses have clouded the picture, the reality is that on aggregate, the reporting season so far has been very solid,” said Max Kettner, a multi-assets strategist at HCBC Holdings Plc. “Everyone, literally everyone, in the market right now is worried about supply-chain constraints, higher input costs and the like, so headwinds from this side are now very well reflected in near-term earnings expectations.” Concern over more tension between Beijing and Washington also weighed on markets after the U.S. Federal Communications Commission voted to revoke the authorization for China Telecom’s U.S. subsidiary to operate in the United States after nearly two decades, citing national security. “We have good U.S. data in earnings which is very reassuring but valuation is very stretched in both the value as well as the growth sector,” said Sebastien Galy, senior macro strategist at Nordea Asset Management. “And people are also getting a bit hesitant and are a bit worried because the amount of money that is going through will slow down with the Fed slowly starting to taper - but that is not necessarily a bad thing.” MSCI’s global equity benchmark hovered close to Monday’s seven-week high and is on track for the best month in almost a year. However, European stocks softened, led by a 1.6% drop in mining and resource firms in the Stoxx Europe 600 index as prices of raw materials including aluminum and iron ore fell along with crude oil. Germany’s DAX underperformed after Europe’s biggest economy cut its 2021 growth forecast, citing the lingering effects of the pandemic and a supply squeeze. Bund yields dropped along with those on other European bonds. Bank shares also slipped, with Deutsche Bank down more than 5% despite forecast-beating earnings. Europe's Stoxx 600 dropped about 0.3%, weighed down the most by miners and energy firms. FTSE 100 and DAX both down similar amounts. Here are some of Wednesday’s major earnings and corporate news from Europe Deutsche Bank AG dropped more than 6% after disappointing earnings, while Banco Santander SA declined despite a bullish outlook. Heineken NV fell after reporting a drop in demand for beer. BASF SE slipped after flagging dwindling returns on its core suite of chemical products as sputtering global supply catches up with demand. GlaxoSmithKline Plc rose after improving its profit outlook. Dutch semiconductor equipment maker ASM International NV advanced after revenue forecasts beat analyst estimates. Puma SE gained after raising full-year profit forecasts. Temenos AG surged as much as 16% after Bloomberg reported EQT AB is exploring an acquisition of the Swiss banking software specialist. Earlier in the session, the MSCI Asia Pacific Index was down 0.4% in late afternoon trading, paring an earlier drop of 0.7%, with Tencent, Alibaba and Meituan the biggest drags. Asian equities fell as risk-off sentiment fueled by renewed concerns over Evergrande’s debt woes and an escalation in China-U.S. tensions drove losses in Chinese tech giants. Benchmarks in Hong China and China led declines around the region. The Hang Seng Tech Index plunged as much as 3.9%, the most in over five weeks after Washington moved to ban U.S. business by China Telecom, following previous similar measures against Chinese tech firms including Huawei. Meanwhile, Secretary of State Antony Blinken called for a greater role by Taiwan in the United Nations, raising objections from Beijing. Chinese tech stocks have been rattled this year by a crackdown amid President Xi Jinping’s “common prosperity” campaign. There had been signs of a rebound recently, however, as the government signaled it would limit its restrictions. Investor confidence in beaten-down Chinese tech stocks hasn’t been fully restored “so they rush to dump those stocks at any negative news and signs of flow reversal,” said Castor Pang, head of research at Core Pacific-Yamaichi International Hong Kong. “This round of tech rebound has peaked,” he added. Key equity gauges also fell more than 0.5% in Indonesia and South Korea, while Vietnam’s benchmark climbed more than 2%. Japanese equities fell, though they closed off intraday lows, as electronics makers and telecommunications providers drove losses. Auto and chemical makers provided support for the Topix which closed down 0.2%, paring an earlier drop of as much as 0.7%. The Nikkei 225 closed little changed, with a gain in Fast Retailing offsetting a drop in SoftBank Group. Asian stocks were broadly lower, as the U.S. moved to ban China Telecom and amid renewed concern over Evergrande’s debt woes. Meanwhile, Japan Exchange Group said Tokyo Stock Exchange will extend the trading day by 30 minutes in the second half of the fiscal year ending March 2025.  In rates, the 10Y yield is down 1.2bp at 1.595%, trailing steeper declines for U.K. and German counterparts, which outperform by ~3bp as money markets trim expectations for BOE and ECB rate hikes. Long-end Treasuries continued to outperform vs front-end ahead of 5- and 7-year auctions Wednesday and Thursday, as well as month-end rebalancing expected to favor bonds over equities. Long-end yields are lower on the day by ~2bp, front-end yields higher by similar amounts, following selloff in Australia front-end bonds after strong 3Q CPI numbers. 5s30s curve breached 82bp for first time in a year. Gilts flatten further ahead of a revised gilt remit that is expected to report a GBP33b reduction. U.K. 10-year yield falls 5bps to 1.06%, the lowest since Oct. 14, outperforming bunds by ~1bp. In FX, the Japanese yen strengthened ~0.5% against the U.S. dollar, leading G-10 majors and followed by the Swiss franc. All other G-10 peers are red against the dollar, which is up about 0.06%. The fading risk sentiment meanwhile pushed up the safe-haven Japanese yen which rose 0.4% against the U.S. dollar though the greenback in turn held just off a one-week high versus a currency basket. The euro kept gravitating toward the $1.16 handle as overnight plays in the common currency as well as the loonie took the spotlight before the monetary policy meetings by the Bank of Canada and the ECB. The three-month Euro benchmark funding rate fell to -0.556%, matching the record low set on Jan. 6, as excess liquidity hovers near an all-time high seen earlier this month. The pound slipped and the Gilt curve bull-flattened ahead of the U.K. government’s budget announcement. The U.K. is expected to trim gilt sales to GBP33b, according to a Bloomberg survey of analysts at primary dealers. Commodity currencies, led by the krone, fell and the Australian dollar erased an Asia-session gain in European hours. The Aussie earlier rallied while Australian 3-year yield surged as much as 24bps to briefly top 1% after core inflation accelerated back inside RBA’s target, and taking its game of chicken with the bond market to new heights. Kiwi trailed most G-10 peers following a record trade deficit. The Offshore Chinese renminbi fell against the U.S. dollar amid heightened U.S.-China tensions. Currency and bond traders were looking to a slew of central bank meetings over the coming week for guidance. Canada is first up at 1400 GMT on Wednesday while the European Central Bank meets on Thursday, when the Bank of Japan also concludes its two-day meeting. The Fed has all but confirmed it will soon start to whittle back its asset purchases, though has said that shouldn’t signal that rate hikes are imminent. Nevertheless, Fed funds futures are priced for a lift-off in the second half of next year. “We updated our Fed call to show a hike in Q4 2022 and four hikes in 2023,” analysts at NatWest said in a note. “The inflation overshoot has been persistent,” they said. “There is (only) so much the Fed can tolerate before reacting ... it feels inevitable that that conversation will be brought up more and more as we go into next year.” Commodities are in the red. Brent crude down about 1.3% back to $85 a barrel, while WTI slips 1.7% to $83. Base metals drop. LME aluminium, copper, and nickel decline the most. Spot gold down $5 to trade around $1,787/oz.  The crypto space tumbled sharply shortly after the European close, pushing Bitcoin below $59,000 and wiping out much of the ETF launch gains. No changes are expected from Tokyo, but traders are expecting the ECB to push back on market inflation forecasts and are looking for hawkish clues from the Bank of Canada as prices put pressure on rates. Policymakers are facing a steady drip of evidence that there is no let-up from pressure on consumer prices. The latest came from Australia, where data showed core inflation hit a six-year high last quarter, raising the possibility of sooner-than-planned rate increases. The Australian dollar jumped after the data but soon pared the gains. Looking at today's busy calendar, we will get preliminary September wholesale inventories, durable goods orders and core capital goods orders from the US. In Europe, Germany November GfK consumer confidence, France October consumer confidence and Euro Area September M3 money supply are due. In central banks, monetary policy decisions from the Bank of Canada and Central Bank of Brazil will be released. On the corporate earnings front, companies reporting include Thermo Fisher Scientific, Coca-Cola, McDonald’s, Boeing, General Motors, Santander and Ford. Elsewhere, the UK government announces Autumn Budget and Spending Review. Market Snapshot S&P 500 futures little changed at 4,569.75 STOXX Europe 600 down 0.3% to 474.38 MXAP down 0.4% to 199.65 MXAPJ down 0.8% to 656.34 Nikkei little changed at 29,098.24 Topix down 0.2% to 2,013.81 Hang Seng Index down 1.6% to 25,628.74 Shanghai Composite down 1.0% to 3,562.31 Sensex up 0.2% to 61,468.43 Australia S&P/ASX 200 little changed at 7,448.71 Kospi down 0.8% to 3,025.49 German 10Y yield fell 4 bps to -0.157% Euro little changed at $1.1593 Brent Futures down 1.1% to $85.46/bbl Gold spot down 0.5% to $1,784.14 U.S. Dollar Index little changed at 93.98 Top Overnight News from Bloomberg Chinese authorities told billionaire Hui Ka Yan to use his personal wealth to alleviate China Evergrande Group’s deepening debt crisis, according to people familiar with the matter Germany cut its 2021 growth outlook to 2.6% -- compared with a prediction of 3.5% published at the end of April -- reflecting a scarcity in some raw materials and rising energy prices, particularly for gas, Economy Minister Peter Altmaier said Wednesday in an interview with ARD television China plans to limit the price miners sell thermal coal for as it seeks to ease a power crunch that’s prompted electricity rationing and even caused a blackout in a major city last month The SNB stressed that in light of the highly valued currency and the degree of economic slack, expansive monetary policy needs to be maintained, according to an account of President Thomas Jordan’s meeting with Swiss govt Sweden’s National Debt Office is reducing its bond borrowing in both kronor and foreign currency because central government finances are recovering faster than expected from the pandemic, according to a statement A more detailed look at global markets courtesy of Newsquawk Asian markets adopted a downside bias as sentiment waned following the mild gains on Wall Street, in which the S&P 500 and DJIA eked out record closes after easing off best levels. The US close also saw earnings from behemoths Microsoft, Alphabet and AMD - the former rose 2% after blockbuster metrics, whilst the latter two dipped after-market. Meanwhile, Twitter shares rose almost 4% after hours as the Co. highlighted the lower-than-expected Q3 impact from Apple’s privacy-related iOS changes. On the flipside, Robinhood slumped over 8% after reporting a steep decline in crypto activity. It’s also worth noting that Berkshire Hathaway Class A shares - the world’s most expensive shares - are quoted +51% after-market (+USD 223,614.00/shr); reasoning currently unclear. Overnight, US equity futures resumed trade flat before a mild divergence became evident between the NQ and RTY, whilst European equity futures' losses were slightly more pronounced. Back to APAC, the ASX 200 (+0.1%) was buoyed by its tech sector amid the post-Microsoft tailwinds from the US, but the sector configuration then turned defensive, whilst Woolworths slumped some 4% after earnings and dragged the Consumer Staples sector with it. The Nikkei 225 (-0.1%) saw losses across most sectors, with Retail, Insurance and Banks towards the bottom. The KOSPI (-0.8%) conformed to the downbeat mood, whilst Hyundai shares were also pressured amid its chip-related commentary. The Hang Seng (-1.6%) and Shanghai Comp (-1.0%) declined despite another substantial CNY 200bln PBoC liquidity injection for a net CNY 100bln. The Hang Seng accelerated losses in the first half-hour of trade with Alibaba, Tencent and Xiaomi among the laggards. Meanwhile. PAX Technology slumped 45% after the FBI raided the Co's Florida officers amid suspicion PAX’s systems may have been involved in cyberattacks on US and EU organizations. Finally, 10yr JGBs were lower amid spillover selling from T-notes and Bund futures, whilst the Aussie 3yr yield topped 1.00% for the first time since 2019 as the trimmed and weighted Australian CPI metrics moved into the RBA's target zone. Top Asian News China Agrees Plan to Cap Key Coal Price to Ease Energy Crisis China Tech Stocks Slump as Tensions With U.S. Spook Investors Top Court Orders Probe Of India’s Alleged Pegasus Use Tokyo Stock Exchange to Extend Trading Day by 30 Minutes European equities (Stoxx 600 -0.3%) are trading moderately lower in a session which has been heavy on earnings and light on macro developments. The APAC session saw more pronounced losses in Chinese bourses (Shanghai Comp -1%, Hang Seng -1.8%) compared to peers despite ongoing liquidity efforts by the PBoC with Hong Kong stocks hampered by losses in Alibaba, Tencent and Xiaomi. Stateside, performance across US index futures were initially firmer before following European peers lower with more recent downside coinciding with the US Senate Finance Committee Chairman unveiling a tax proposal focused on unrealised gains of assets held by billionaires and impose a 23.8% capital gains rate on tradable assets such as stocks; ES -0.1%. The US close saw earnings from behemoths Microsoft, Alphabet and AMD - the former rose 2% after blockbuster metrics, whilst the latter two dipped after-market. Meanwhile, Twitter shares rose almost 4% after hours as the Co. highlighted the lower-than-expected Q3 impact from Apple’s privacy-related iOS changes. On the flipside, Robinhood slumped over 8% after reporting a steep decline in crypto activity. In the pre-market, upcoming earnings highlights include McDonalds, Boeing, GM, Bristol Myers and FTSE 100-listed GSK. Back to Europe, sectors are mostly lower with Basic Resources and Oil & Gas names at the foot of the leaderboard amid performance in underlying commodity prices. Banking names are also trading on a softer footing following earnings from Deutsche Bank (-5.4%) which saw the Co. report a decline in trading revenues whilst managing to make a profit for the 5th consecutive quarter. Spanish heavyweight Santander (-2.5%) is also acting as a drag on the sector despite reporting a net profit above expectations for Q3 with some desks highlighting softer performance for its US operations. Elsewhere, Sodexo (+5.6%) is the best performer in the Stoxx 600 after strong FY results, whilst Puma (+3.2%) trades on a firmer footing after reporting a beat on Q3 earnings and raising guidance. To the downside, BASF (-1.0%) shares are seen lower despite exceeding expectations for earnings with the Co. cautioning that the impact from higher Nat Gas prices in the first nine months of the year amounted to EUR 600mln costs and a significant increase in costs is expected following the October price hike. Top European News Deutsche Bank Falls; Results Fail to Provide Fresh Catalyst BASF Points to Chemical Price Surge Easing as Supply Increases SNB’s Jordan Stressed Need for Loose Policy in Govt Meeting U.K.’s Sunak Set to Cut Tax on Domestic Flights: The Independent In FX, nearly, but not quite for the index in terms of turning full circle on Tuesday and matching the prior week high as it fell just shy at 94.024 vs 94.174 on October 18, while also narrowly missing 94.000 on a ‘closing’ basis with a last price of 93.956. Moreover, month end rebalancing factors are moderately bearish for the Greenback against G10 rivals, and especially vs the Yen that has a relatively large 1.6 standard deviation and appears to be playing out in the headline pair and Jpy crosses on spot October 29. Indeed, Usd/Jpy has recoiled further from yesterday’s peak circa 114.31 to sub-113.60 before taking cues from the BoJ tomorrow and Japanese retail sales in the run up, but decent option expiry interest between 113.55-50 (1.8 bn) may underpin and support the DXY by default within a narrow 94.008-819 band. More immediately for the Buck in particular and peers indirectly, US durable goods, advance trade, wholesale and retail inventories. CHF/AUD - Also firmer vs their US counterpart, as the Franc clambers back above 0.9200 irrespective of a deterioration in Swiss investor sentiment and the growing chance that the SNB could be prompted to respond to a retreat in Eur/Chf from 1.0700+ to 1.0637 or so. Elsewhere, the Aussie has pared some of its post-core inflation inspired gains, but is holding close to 0.7500 and still outpacing its Antipodean neighbour as Aud/Nzd hovers around 1.0500. NZD/CAD/GBP - A downturn in overall risk sentiment and the aforementioned cross headwinds are weighing on the Kiwi that has slipped under 0.7150 vs its US namesake, and it’s a similar tale for Sterling that failed to retain 1.3800+ status or breach 0.8400 against the Euro before the latest reports about France preparing retaliatory measures against the UK over the fishing rights dispute. On top of that, Eur/Gbp tides are turning into month end and the usual RHS flows seen into and around fixings, while the Pound may also be acknowledging a pull-back in Brent prices in advance of the Budget, like the Loonie in respect of WTI ahead of the BoC, with Usd/Cad back above 1.2400 compared to 1.2350 at one stage on Tuesday and a tad lower in the prior session. Note, the break-even via implied volatility indicates a 58 pip move on the policy meeting that comes with a new MPR and press conference from Governor Macklem. EUR - Notwithstanding several gyrations and deviations of late, the Euro seems largely anchored to the 1.1600 mark vs the Dollar and yet more option expiries at the strike (1.5 bn today) may well be a contributing factor as the clock continues to tick down Thursday’s ECB convene that is seen as a dead rubber event in passing ahead of the big one in December - check out the Research Suite for a preview and other global Central Bank confabs scheduled this week. SCANDI/EM - Hardly a surprise to see the Nok recoil alongside crude prices, but the Sek is holding up relatively well in wake of an uptick in Swedish household lending and a big swing in trade balance from deficit to surplus. Conversely, the Try’s stoic revival mission has been derailed to an extent by dip in Turkish economic confidence offsetting a narrower trade shortfall, the Rub and Mxn are also feeling the adverse effects of oil’s retracement, the Zar is tracking Gold’s reversal through 200 and 100 DMAs, and the Cny/Cnh have been ruffled by the latest US-China angst, this time on the telecoms front. Last, but not least, the Brl anticipates a minimum 100 bp SELIC rate hike from the BCB, if not 125 bp as some hawkish forecasts suggest. In commodities, a softer start to the session for WTI and Brent seemingly stemming from the cautiously downbeat tone portrayed by broader risk and continuing to take impetus from last night’s Private Inventory report. For reference, the benchmarks are currently lower in excess of USD 1/bbl and WTI Dec’21 has been within touching distance of the USD 83.00/bbl figure, though is yet to test the level. Returning to yesterday’s crude report which printed an above consensus build of 2.318M for the headline print while the gasoline and distillate components were unexpectedly bearish, posting modest builds against expected sizeable draws. Looking ahead, the EIA release is expected to post a headline build. Aside from this, crude specific newsflow has been limited ahead of next week’s OPEC+ gathering though Iran remains on the radar given the latest release of constructive commentary on nuclear discussions. Albeit, we are still awaiting details on a return to full Vienna discussions. Moving to metals, spot gold and silver are softer on the session in a continuation of action seen around this time during yesterday’s session; metals pressured in wake of a choppy, but ultimately firmer, dollar. Elsewhere, China has reportedly agreed to set a price cap for thermal coal sales and comes as part of the ongoing crackdown by China on the commodity which spurred Zhengzhou thermal coal futures to hit limit-down overnight. US Event Calendar 8:30am: Sept. Durable Goods Orders, est. -1.1%, prior 1.8%; 8:30am: Durables Less Transportation, est. 0.4%, prior 0.3% Sept. Cap Goods Orders Nondef Ex Air, est. 0.5%, prior 0.6% Cap Goods Ship Nondef Ex Air, est. 0.5%, prior 0.8% 8:30am: Sept. Retail Inventories MoM, est. 0.2%, prior 0.1%; Wholesale Inventories MoM, est. 1.0%, prior 1.2% 8:30am: Sept. Advance Goods Trade Balance, est. -$88.3b, prior -$87.6b, revised -$88.2b DB's Jim Reid concludes the overnight wrap It’s day 42 out of 42 on crutches without any weight bearing on my left leg. Over that period I’ve been hopping, crawling, sliding, and using the crutches as a pole vault amongst other various forms of self transportation. So sadly today is the last day I get waited on. When I wake up tomorrow I’ll try to walk again and fend for myself. Equities threw away their crutches a couple of weeks ago and haven’t looked back. US Earnings have helped and while they aren’t as good as the headline beats suggest, due to big unwinding of reserves for loan loss provisions at the banks, they are notably better than some of the stagflationary gloom stories that dominated in the weeks ahead of this season. A reminder that our equity guys did their state of play on earnings a couple of days back here. Big tech was always going to be the swing factor between a slightly better than normal level of beats and a more aggressive one. Last night Alphabet, Microsoft, and Twitter all reported after hour. Alphabet and Microsoft beat on both sales and earnings, while Twitter’s revenue just missed expectations but traded higher after hours. Of the 41 S&P 500 companies that reported yesterday, 33 beat estimates. For the earnings season to date, 166 S&P companies have reported, with 139 beating earnings estimates. Prior to this, markets continued to stay in their “new normal” of record or cyclical high equity prices and multi-year breakeven highs. Positive surprises for earnings on both sides of the Atlantic helped yesterday as did strong US consumer confidence numbers. Starting with the US, along with strong earnings, a number of positive surprises in an array of economic data yesterday did just enough to push the S&P 500 (+0.18%) and the DJIA (+0.04%) to new record highs, while the Nasdaq (+0.06%) fell short of beating its record set on September 30th. The FAANG Index lagged on the day, dropping -0.33%, but managed new all-time highs intraday. On the other side of the Atlantic, European equities notched solid gains as well, with most major European markets finishing well in the green territory, lifting the STOXX 600 by +0.75% - a fraction below its record high. All index sectors but energy (-0.29%) finished higher on the back of strong earnings early in the session, particularly from UBS and Novartis. Taking a closer look at the aforementioned economic data, October US consumer confidence came in at 113.8 versus 108.0 expected, while the Richmond Fed Manufacturing index rose to 12, beating expectations of 5. In housing, new home sales for September (800k) surpassed estimates (756k) by a decent margin, whereas the August FHFA House Price Index came in at +1.0% versus +1.5% expected. There were further signs of a tight US jobs market as the labour market differential in the Conference Board index improved to 45.0, the best reading since 2000. Similar to Monday, breakevens climbed as real yields fell in the US and Germany. Nominal 10-year Treasuries were -2.3bps lower, while breakevens increased +2.6bps to 2.69%, still just a hair beneath all-time highs for the series. 10-year bunds declined -0.3bps while the breakeven widened +3.0bps. Breakevens took a breather in the UK, narrowing -8.6bps, whilst 10-year gilts were -3.0 bps lower. In Asia, most major indices are down this morning. The Nikkei 225 (-0.61%), KOSPI (-0.92%), Hang Seng (-1.58%) and Shanghai Composite (-0.92%) are all trading lower. Sentiment soured after the real estate saga continued with Chinese authorities asking companies to get ready to repay offshore bonds, while also urging Evergrande’s founder to employ his own wealth to aid the struggling developer. Additionally, in geopolitics, the US Federal Communications Commission banned China Telecom (Americas) Corp. from operating in the US on the back of national security concerns. Data releases from Asia continued to support the inflationary narrative amid rising commodity prices as we saw a +16.3% YoY growth in China’s industrial profits in September, up from +10.1% a month earlier. Meanwhile, Australia’s trimmed mean CPI (+2.1%) came in above expectations (+1.8%), sending the 3y yield higher by +14.5bps. The S&P 500 mini futures (0.00%) is broadly unchanged with the 10y Treasury at 1.622 (+1.4bps). In commodities, oil futures were mostly mixed yesterday, but both WTI (+1.06%) and Brent (+0.48%) managed to rise by the European close, as Saudi Aramco said earlier in the session that oil output capacity is declining rapidly across the world. On the other hand, European weather forecasts that pointed at lower temperatures starting next week did little to propel natural gas prices, which declined both in the region (-0.33%) and in the US (-0.27%). Briefly taking a look at the virus news, The FDA’s vaccines advisory committee voted 17-0 to back jabs for kids ages 5-11. The dose for the younger cohort amounts to one third of the current one given to those over the age of 12, which means that it could be more quickly distributed if the demand is there. The agency will give its final ruling soon, which is expected to follow the panel’s recommendation, and then the shots could be distributed within weeks to schools, pediatricians, and pharmacies. Elsewhere, Singapore will allow fully vaccinated travelers from Australia and Switzerland to enter without quarantine from November 8. In terms of upcoming data releases today, we will get preliminary September wholesale inventories, durable goods orders and core capital goods orders from the US. In Europe, Germany November GfK consumer confidence, France October consumer confidence and Euro Area September M3 money supply are due. In central banks, monetary policy decisions from the Bank of Canada and Central Bank of Brazil will be released. On the corporate earnings front, companies reporting include Thermo Fisher Scientific, Coca-Cola, McDonald’s, Boeing, General Motors, Santander and Ford. Elsewhere, the UK government announces Autumn Budget and Spending Review. Tyler Durden Wed, 10/27/2021 - 07:53.....»»

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Market Snapshot: U.S. stocks may struggle to hold record highs as earnings roll in from Boeing, McDonald’s and GM

On the heels of another record session for the Dow and S&P 500, stock index futures are slipping with a big batch of earnings on the way......»»

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Stock futures give up gains ahead of major earnings reports

Stock futures give up gains ahead of major earnings reports.....»»

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US futures get a boost from Big Tech earnings, but an inflation-driven rise in bond yields keeps investors wary

Strong tech earnings offset the effect of a surge in bond yields to March 2020 highs, as investors rapidly priced in rate rises to beat inflation. Hot air balloons featuring various figures glide over Goreme district. Anadolu/Getty Images US futures edged up, buoyed by optimism over tech earnings, despite a rise in government bond yields. Concern about inflation has pushed two-year Treasury yields to their highest since the start of the pandemic. In crypto, dogecoin spin-off token Shiba Inu surged another 30% to record highs. US stock futures edge higher on Wednesday, after bumper earnings from Big Tech helped offset a sharp rise in government bond yields that reflected investors' expectation of prompt rate rises to stem inflation.Futures on the S&P 500 and the Dow Jones rose 0.1%, while those on the Nasdaq 100 gained 0.2% in European trading. The benchmark indices hit all-time highs the day before following robust earnings from the likes of Microsoft and Twitter. Yields on two-year US Treasuries - the most sensitive to investor expectations for interest rates - rose to their highest since the onset of the pandemic in March last year, closing the gap with those on 10-year notes in what is referred to as a flattening of the curve. Two-year notes were last at 0.507%, up 6 basis points on the day, set for their biggest monthly gain since November 2016, while 10-year notes were yielding 1.622%, bringing the spread between the two to its narrowest in two months. "It should be obvious by now that the market's centre of attention is on the (perceived) need for central banks to get ahead of the rise in inflation," ING head of Americas regional research Padraig Garvey said."What is clear is that front-end rates are now the most important part of any yields curve. They are the proverbial tail wagging the dog: when hike conviction increases, the long-end tends to flatten, and vice versa," he said.Inflation has roared higher around the world, with the price of everything from basic foodstuff and utility bills to key raw materials soaring to multi-year or even record highs, as global activity has snapped back after the worst of the pandemic. In Europe, traders were waiting for the UK government's autumn budget, due later on Wednesday, and the outcome of a European Central Bank policy meeting on Thursday. UK Chancellor Rishi Sunak is widely expected to unveil a raft of new spending measures. "Increases to public sector pay, a huge cash injection for the NHS, investment in regional transport, skills, housing, and education, along with a freeze to fuel duty, however the devil will be in the detail, in terms of how much it is all likely to cost," CMC Markets chief markets strategist Michael Hewson said.The FTSE 100 was barely changed, down 0.1% on the day, while the pound was down around 0.1% against both the dollar and the euro. Elsewhere across the markets, the pan-European Stoxx 600 eased by 0.2%, having touched three-month highs the previous day, while in Asia, the Shanghai Composite fell 1.0% and the Hang Seng dropped 1.7%, dragged down by persistent concerns about the beleaguered property sector.In the cryptocurrency sector, dogecoin spin-off Shiba Inu rocketed up by more than 30% to new record highs above $0.00005940, after hundreds of thousands of Robinhood users petitioned the trading app to add the token to its offering. Bitcoin, meanwhile, was last down 3.2% at around $60,400, down around 10.5% from a record near $67,000 a week ago.Read more: Two of the world's largest asset managers are divided on the prospect of 1970s-style stagflation - here's why BlackRock and Deutsche Bank disagree and how retail investors can navigate the potential combination of high inflation and weak growthRead the original article on Business Insider.....»»

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Stock futures rise ahead of major earnings reports

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Blackstone CEO predicts the energy crisis will worsen inflation and prompt social unrest

Shortage means "it's just going to cost more and it's probably going to cost a lot more," said billionaire Stephen Schwarzman, CEO of Blackstone. The energy shortage is severe enough that it could cause a lot of unhappiness and social unrest, said Blackstone CEO, Stephen Schwarzman. Benchmark US oil futures are around $85 a barrel after surging about 75% year-to-date. Oil could rise to $100 a barrel, said BlackRock chairman Larry Fink. The global energy crisis is severe enough that it could fuel social unrest, said the CEO of asset management company Blackstone on Monday. Stephen Schwarzman was speaking at the Future Investment Initiative conference in Saudi Arabia. Schwarzman, who is also co-founder of the investment firm, said: "We're going to end up with a real shortage of energy. And when you have a shortage, it's just going to cost more and it's probably going to cost a lot more," as reported by Bloomberg and CNN.When that happens, "you're going to get very unhappy people around the world," particularly in the emerging markets, he continued. Oil prices have surged this year on the back of a demand recovery and energy supply crunch.Benchmark US crude oil futures are up 75% year-to-date, around $85 a barrel - and they could gain more, pushing up energy prices and everything else downstream.Larry Fink, the CEO of BlackRock, the world's largest asset manager, also spoke at the conference. He told the audience there was a reasonable chance oil prices would reach $100 a barrel, Bloomberg reported."Inflation, we are in a new regime," he said. "There are many structural reasons for that. Short-term policy related to environmentalism, in terms of restricting the supply of hydrocarbons, has created energy inflation, and we are going to be living with that for some time.""We're not focusing on long-term solutions. We're not trying to change the world on a granular basis," Fink continued. "We have these visions we could go from a brown world, and we could wake up tomorrow there'd be a green world, and that is not going to happen." Read the original article on Business Insider.....»»

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