adplus-dvertising
Connect with us

Business

Dow Jones soars nearly 500 points to session high on signs that Fed may be done hiking rates

Published

12 months ago

 on

U.S. stocks were trading near session highs Thursday afternoon, with the S&P 500 on track to climb for a fourth straight session as bond yields slumped and traders cheered signs that the Federal Reserve may forgo further interest-rate hikes.

What’s happening

  • The Dow Jones Industrial Average
    DJIA
    gained 485 points, or 1.5%, to 33,755, setting fresh highs for the session.
  • The S&P 500
    SPX
    rose 72 points, or 1.7%, to 4,310.
  • The Nasdaq Composite
    COMP
    gained 211 points, or 1.6%, to 13,272.

On Wednesday, the Dow rose 222 points, or 0.67%, to 33275, logging its biggest three-session advance since April. 3, Dow Jones Market Data show.

What’s driving markets

Wall Street stepped up a four-day rally Thursday afternoon, with energy, financials and the rate-sensitive information technology segments of the S&P 500 all up 5% on the week so far, according to FactSet data.

The rally in stocks was intensifying after the Federal Reserve kept interest rates on hold Wednesday. The main focus in markets was on its hints that rising bond yields have been doing some of the central bank’s inflation-fighting job for it.

Although, Jamie Dimon, JP Morgan Chase & Co.’s
JPM,
+1.34%
chief executive, on Thursday warned of the chance of additional rate hikes, saying the mega bank was prepared in the event 10-year Treasury yields
BX:TMUBMUSD10Y
rise to 7% to 8%.

“Obviously, the market is reacting positively,” Peter Cardillo, chief market economist at Spartan Capital Securities, said during a phone interview with MarketWatch.

“The fact that Powell paused for the second [meeting] in a row and basically indicated that rising yields are doing the Fed’s work by saying yields would dampen activity going forward — to me this suggests that he’s finished with the tightening cycle.”

Treasury yields continued to slide, with the 10-year yield down 8 basis points at 4.68%, near its lowest level in more than two weeks, according to FactSet data. Bond yields move inversely to prices.

That also helped lift stocks, with the S&P 500 poised to rise for a fourth day and on pace for its biggest four-day percentage gain in roughly a year, according to Dow Jones Market data.

Stocks added to their gains following a batch of favorable labor-market data released ahead of Friday’s October jobs report. A weekly report on jobless claims showed the number of Americans who applied for unemployment benefits last week increased by 5,000 to a seven-week high of 217,000.

But strategists were more focused on a quarterly U.S. government reading on labor-market productivity, which surpassed economists’ expectations while showing that labor costs have fallen.

A 0.8% decline in unit labor costs marked the first decline since the fourth quarter of last year. Cardillo said signs of cheaper labor helped boost demand for stocks Thursday.

After the bell, investors will receive earnings from Apple
AAPL,
+1.93%
while they wait for Friday’s October jobs report.

They’ll be watching carefully as the “Magnificent Seven” member lays out its latest results and guidance following a batch of earlier reports from other megacap technology companies that weren’t well-received by the markets.

Finally, the Bank of England on Thursday opted to follow the Fed and hold rates steady for a second straight meeting, though the vote was closer than expected: 6-to-3 in favor of keeping rates at 5.25%.

Stocks in focus

  • Crocs Inc.’s
    CROX,
    -6.67%
    stock was 7% lower Thursday after its fourth-quarter earnings projections fell short of analyst estimates.
  • Starbucks Corp.
    SBUX,
    +10.71%
    shares jumped more than 11% after earnings beat estimates and people continued to spend on pricier coffees.
  • PayPal Holding
    PYPL,
    +6.50%
    shares were up 6% after Wall Street heard from its new CEO Alex Chriss as the company delivered quarterly results.
  • Shares of Palantir
    PLTR,
    +20.38%
    were nearly 20% higher.
  • Tesla Inc.
    TSLA,
    +5.93%
    shares rose, putting them on track for their best day in a month and for a three-day win streak.
  • Peloton Interactive Inc.
    PTON,
    +15.28%
    turned higher, jumping 16%, despite the maker of connected exercise equipment delivering a downbeat outlook for the holiday period.
  • Eli Lilly & Co.
    LLY,
    +4.23%
    shares rose on Thursday after the drugmaker reported a surprise third-quarter profit and strong sales growth, boosted by diabetes drug Mounjaro.

—Steve Goldstein contributed reporting

 

728x90x4

Source link

Related Topics:
Continue Reading

Business

Carry On Canadian Business. Carry On!

Published

2 days ago

 on

October 22, 2024

By

business to start in Canada

Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

Continue Reading

Business

Imperial to cut prices in NWT community after low river prevented resupply by barges

Published

2 days ago

 on

October 22, 2024

By

 

NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Business

U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

Published

2 days ago

 on

October 22, 2024

By

 

TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Trending