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Stock market news live updates: Stocks rise, S&P 500 looks to snap 7-week losing streak – Yahoo Canada Finance

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U.S. stocks jumped on Friday, with the major indexes ending a weeks-long losing streak after a string of more upbeat corporate results at least temporarily offset fears of a steep economic slide.

The S&P 500 rallied into the close, gaining 2.5% to end at 4,158.24. The blue-chip index ended a seven-week losing streak and posted its best week since Nov. 2020, rising by more than 6.5% since last Friday. The S&P 500 also erased its losses for the month of May to date.

The Dow Jones Industrial Average rose by 576 points, or 1.8%, on Friday to end at 33,212.96, and the Nasdaq Composite added more than 3% to close at 12,131.13.

Investors digested a fresh set of economic data earlier on Friday, including the latest print on core personal consumption expenditures (PCE) — the Federal Reserve’s preferred gauge of underlying inflation. These showed inflationary pressures eased only modestly in April compared to March, echoing results from the still-elevated Consumer Price Index and Producer Price Index released from earlier this month. Headline PCE increased 6.3% in April over last year compared to March’s 6.6% increase, and core PCE rose by 4.9% compared to 5.2% in the prior month. But separate data also showed personal spending, adjusted for inflation, accelerated in April compared to March.

Over the past several sessions, investors have weighed favorably the most recent batch of quarterly results and guidance from retailers like Macy’s (M), Nordstrom (JWN), Dollar General (DG) and Dollar Tree (DLTR). These companies largely exceeded Wall Street’s estimates, helping assuage concerns that the profit pressures reported recently by Walmart (WMT), Target (TGT) and Kohl’s (KSS) were reverberating equally across all consumer-facing firms. And outside of retail, airlines including JetBlue (JBLU) and Southwest (LUV) raised their sales guidance for the current quarter, suggesting demand remained strong for discretionary travel.

“Overall the U.S. consumer still remains in great shape. They came into these price hikes, this inflation, with cushion on their balance sheet. Certainly employment is high, so the overall U.S. consumer remains in a very strong place,” Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management, told Yahoo Finance Live.

“The big fear was that inflation was going to continue to run away and cause the Fed to have to tighten the U.S. economy into a recession,” he added. “I think we’re all starting to gradually wake up to the reality that goods spending … was pulled forward. Inventories have been rebuilt, and goods spending has caused the inflation that you’re seeing. That’s going to roll over as people move over to service sector spending.”

“And so it may feel like a recession in some parts of the economy, but other parts of the economy are going to do well,” Schutte said. “Inflation is going to fall, and the Fed is going to go a bit easier.”

However, other strategists cast doubt on the staying power of gains seen in the market so far this week, especially as inflation has shown few meaningful signs of coming down in a substantial way to date.

“This is nothing more than a bear bounce in our opinion. When you look at these bounces we’ve had, they’ve been on very light volume, there’s not a lot of conviction,” Eddie Ghabour, co-founder and managing partner of Key Advisors Group, told Yahoo Finance Live. “The data that we’re getting now that’s been causing this sell-off, remember, is first-quarter data. The data coming in the second quarter is going to be worse than the first quarter. And we’re not going to get that news until July … So I think we’re going to have a very treacherous market in the next few months.”

4:03 p.m. ET: Stocks post best week since Nov. 2020 as S&P 500 erases May losses

Here’s where markets closed out the session on Friday:

  • S&P 500 (^GSPC): +100.43 (+2.47%) to 4,158.27

  • Dow (^DJI): +576.36 (+1.77%) to 33,213.55

  • Nasdaq (^IXIC): +390.48 (+3.33%) to 12,131.13

  • Crude (CL=F): +$1.01 (+0.89%) to $115.10 a barrel

  • Gold (GC=F): +$3.40 (+0.18%) to $1,857.30 per ounce

  • 10-year Treasury (^TNX): -1.3 bps to yield 2.7430%

11:54 a.m. ET: Stocks extend gains to trade near session highs, Dow heads for sixth straight day of gains

Here were the main moves in markets as of 11:54 a.m. ET:

  • S&P 500 (^GSPC): +72.05 (+1.78%) to 4,129.89

  • Dow (^DJI): +344.28 (+1.05%) to 32,981.47

  • Nasdaq (^IXIC): +299.88 (+2.55%) to 12,040.53

  • Crude (CL=F): +$0.12 (+0.11%) to $114.21 a barrel

  • Gold (GC=F): +$4.50 (+0.24%) to $1,858.40 per ounce

  • 10-year Treasury (^TNX): -2.7 bps to yield 2.7290%

10:06 a.m. ET: Consumer sentiment weakened in late May to lowest since 2011

Consumer sentiment fell further in late May, largely on account of concerns around inflation and business conditions in the near-term.

The University of Michigan’s final monthly sentiment index decreased to 58.4, which was downwardly revised from the 59.1 previously reported for the month. Subindices tracking consumers’ views on current conditions and future expectations were each also slightly downwardly revised, and one-year inflation expectations were little changed at 5.3%.

The latest sentiment drop “was largely driven by continued negative views on current buying conditions for houses and durables, as well as consumers’ future outlook for the economy, primarily due to concerns over inflation,” Joanne Hsu, Surveys of Consumers director, wrote in a statement. “At the same time, consumers expressed less pessimism over future prospects for their personal finances than over future business conditions.”

“Looking into the long term, a majority of consumers expected their financial situation to improve over the next five years; this share is essentially unchanged during 2022,” Hsu added. “A stable outlook for personal finances may currently support consumer spending. Still, persistently negative views of the economy may come to dominate personal factors in influencing consumer behavior in the future.”

9:32 a.m. ET: Stocks open higher

Here were the main moves in markets as of 9:32 a.m. ET:

  • S&P 500 (^GSPC): +32.86 (+0.81%) to 4,090.70

  • Dow (^DJI): +56.27 (+0.17%) to 32,693.46

  • Nasdaq (^IXIC): +165.04 (+1.41%) to 11,905.69

  • Crude (CL=F): -$0.12 (-0.11%) to $113.97 a barrel

  • Gold (GC=F): +$10.30 (+0.56%) to $1,864.20 per ounce

  • 10-year Treasury (^TNX): -3.1 bps to yield 2.7250%

8:58 a.m. ET: Goods trade deficit narrows more than expected in April after record reading in March

The U.S. goods trade gap declined more than anticipated in April after reaching an all-time high of nearly $126 billion in March.

The advance goods trade balance showed a deficit of $105.9 for the U.S. in April, the Commerce Department said Friday. This followed a gap of $125.9 billion in March, which was upwardly revised from $125.3 billion last month.

The print suggests trade produced slightly less of a drag on the U.S. economy at the start of the second quarter compared to the first. In the first quarter, net exports shaved 3.23 percentage points off headline U.S. gross domestic product (GDP). GDP fell at a 1.5% annualized rate in the first three months of the year.

8:42 a.m. ET: Real personal spending accelerates in April, while saving rate slides to lowest since 2008

U.S. consumers kept spending last month even as inflation remained elevated, as one of the key contributors to U.S. economic activity held up into the spring. However, the personal saving rate dwindled to the lowest level in over a decade, raising some concerns over how much longer spending might manage to prop up the economy.

Real personal spending rose 0.7% month-on-month in April, the Bureau of Economic said Friday, accelerated from March’s 0.2% rise. Unadjusted for inflation, personal spending was up 0.9%, exceeding consensus economist expectations for a 0.8% increase, according to Bloomberg data. This metric had risen by 1.1% in March.

Personal income, however, decelerated slightly last month, rising 0.4% after March’s 0.5% increase. And the personal saving rate, or proportion of disposable personal income set aside to savings, fell to 4.4% from March’s 5.0%, reaching the lowest level since 2008. After soaring during the pandemic, the saving rate has now come in well below the average of 2019 before the outbreak, when the saving rate had averaged over 7%.

8:38 a.m. ET: Inflation eases just slightly in April as PCE rises 6.3% year-over-year

Inflation as measured by the Bureau of Economic Analysis’ personal consumption expenditures (PCE) index eased only modestly in April compared to March, with fast-rising prices showing few signs of slowing down across the U.S. economy.

The broadest measure of PCE rose 0.2% in April month-on-month, which matched consensus economist expectations, according to Bloomberg data. This compared to a 0.9% monthly increase in March. On a year-over-year basis, however, PCE still soared by 6.3%, coming in slightly hotter than expected and moderating only slightly from March’s 6.6% annual rise.

Core PCE, which excludes volatile food and energy prices, also remained hot and rose 4.9% in April over last year. That matched estimates, and followed a 5.2% rise in March. February’s reading of 5.3% had been the highest since 1983.

7:23 a.m. ET: Stock futures rise as indexes look to log weekly gains

Here’s where markets were trading Friday morning:

  • S&P 500 futures (ES=F): +11 points (+0.27%) to 4,066.75

  • Dow futures (YM=F): +26 points (+0.08%) to 32,626.00

  • Nasdaq futures (NQ=F): +54.25 points (+0.44%) to 12,333.50

  • Crude (CL=F): -$0.46 (-0.40%) to $113.63

  • Gold (GC=F): +$8.80 (+0.47%) to $1,862.70 per ounce

  • 10-year Treasury (^TNX): -3.3 bps to yield 2.725%

NEW YORK, NEW YORK - MAY 23: Traders work on the floor of the New York Stock Exchange (NYSE) on May 23, 2022 in New York City. After a week of steep losses, markets were up in Monday morning trading.  (Photo by Spencer Platt/Getty Images)NEW YORK, NEW YORK - MAY 23: Traders work on the floor of the New York Stock Exchange (NYSE) on May 23, 2022 in New York City. After a week of steep losses, markets were up in Monday morning trading.  (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – MAY 23: Traders work on the floor of the New York Stock Exchange (NYSE) on May 23, 2022 in New York City. After a week of steep losses, markets were up in Monday morning trading. (Photo by Spencer Platt/Getty Images)

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter.

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Accounting firm EY to pay $100M US fine after auditors caught cheating on ethics exams – CBC News

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Accounting firm Ernst & Young will pay $100 million US to settle U.S. Securities and Exchange Commission (SEC) charges that its auditors cheated on certified public accounting (CPA) exams and that it misled the agency’s investigators.

The London-based auditor admitted to the charges and agreed to pay what the SEC said is its largest fine against an auditor.

“EY acknowledges the findings determined by the SEC,” said Brendan Mullin, EY media relations director, adding that the firm’s response has been “thorough, extensive and effective.”

“At EY, nothing is more important than our integrity and our ethics.”

The CPA is the key qualification for accountants in the United States.

EY has also agreed to “undertake extensive remedial measures to fix the firm’s ethical issues,” the SEC said.

49 people got test answers ahead of time

The Wall Street watchdog found that 49 EY professionals “obtained or circulated” answer keys to CPA licence exams, while hundreds of others cheated to complete the continuing professional education components relating to CPA ethics.

“This action involves breaches of trust by gatekeepers … entrusted to audit many of our nation’s public companies. It’s simply outrageous that the very professionals responsible for catching cheating by clients cheated on ethics exams,” said Gurbir Grewal, the SEC’s enforcement director, in a statement.

“And it’s equally shocking that Ernst & Young hindered our investigation of this misconduct,” added Grewal.

EY submitted to the SEC that it did not have issues with cheating when, in fact, the firm had been informed of potential cheating on a CPA ethics exam by a member of staff, the SEC said.

It added that EY admitted it did not correct its submission even after an internal EY investigation confirmed there had been cheating, and even after its senior lawyers discussed the matter with the firm’s senior management.

The SEC’s order also finds that EY violated a Public Company Accounting Oversight Board (PCAOB) rule requiring the firm to maintain integrity in the performance of a professional service.

The SEC has ordered EY to retain two independent consultants to help remediate its deficiencies. One will review the firm’s policies and procedures relating to ethics and integrity. The other will review EY’s conduct regarding its disclosure failures, including whether any EY employees contributed to the firm’s failure to correct its misleading submission, the SEC said.

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Canada's transport minister speaks out about 'unacceptable issues' at airports following reports of luggage chaos at Pearson – CP24 Toronto's Breaking News

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Canada’s transport minister is speaking out about the “unacceptable issues” that continue to result in significant delays at Canadian airports after images surfaced on social media showing hundreds of pieces of luggage piled up at Pearson International Airport.

The Greater Toronto Airports Authority, which operates Pearson, told CP24 on Tuesday that a number of issues over the past several days have led to “challenges with baggage,” including “flight delays and cancellations, staff shortages and temporary mechanical disruptions with the baggage system.”

So far dozens of people have spoken out about losing their luggage at Pearson, including one woman who told CP24 that her bag was lost once on the way to Phoenix and then again on the way back to Toronto, resulting in a frustrating “suitcase scavenger hunt” that ultimately proved fruitless.

There have also been numerous images shared on social media showing huge piles of luggage in the baggage claim area at Pearson, which travellers have had to search through in the hopes of finding their missing bags.

“What we are seeing today is that while many of those Canadian Air Transport Security Authority and Canadian Border Security Agency issues have significantly improved we continue to see delays, cancellations and luggage issues,” Transport Minister Omar Alghabra told reporters at an unrelated announcement in the GTA on Wednesday. “I have had conversations with the four largest airports and the two largest airlines just on Thursday and I will be having follow up conversations with them soon. They know that they need to add more resources and they are working on that and we are offering our support to address these issues. But these are unacceptable issues.”

Pearson has been plagued by delays for months now amid increased demand and some staffing shortages.

Alghabra said that at this point the federal government has done everything in its control to address the issues at airports, including increasing staffing at customs and at security checkpoints.

He said that his government is also looking at “possibly extending the suspension” of random COVID-19 testing, which was supposed to be lifted on July 1.

That, he said, is because it is taking longer than expected to address the logistics of moving the testing off-site.

“What we are seeing is the surge of demand for air travel beyond what anybody expected and that is honestly good news. But the surge in demand is outpacing the ability for airlines and airports to enhance the resources that they need to accommodate that surge,” he said. “So we are working with airlines and airports to ensure that the resources needed, that the scheduling adjustments that are needed are addressed. Because we are also seeing extreme peaks at certain hours of the day.”

Tory says he will speak with Air Canada about issues

Many of the luggage issues at Pearson have reportedly involved Air Canada flights.

In a statement provided to CP24 on Tuesday, Air Canada said “that avoiding baggage delays is a top priority” as they are “disruptive and inconvenient” for customers and lead to added costs that the airline ultimately has to bear.

But they said that with the “well-documented issues” plaguing airports and resulting in last-minute flight cancellations there are simply more instances of delayed bags.

“I think the overall record is better today at the airport than it was a few weeks ago and I think there is every reason to believe that progress will continue,” Toronto Mayor John Tory told reporters at a news conference on Wednesday when asked about the issues at Pearson. “I am not personally familiar with the precise way baggage is handled but certainly from my limited knowledge it occurs to me that most of the responsibility rests with the airlines, so I will, undertake in light of what has happened to be in touch with Air Canada and find out from their perspective what the problem is, what they are doing to solve their part of it and if they believe that governments in the broadest sense can be helpful in making things work better so those baggage issues don’t arise.”

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Canadian Businesses Need Integrated Facility Services

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Many Canadian businesses require professional facility management to streamline their operations for the smooth functioning of buildings and facilities. Hiring separate contractors for different facility responsibilities, however, can become more time consuming and convoluted. An integrated facilities management company can act as an end-to-end solution for all your facility management needs and take care of all responsibilities.

Hiring a qualified integrated facility services team allows businesses to consolidate facility management under a single discipline, which includes integrating tasks, employees, technology, and safety. This simplifies facility management by bringing together different services under a single contract.

Consider how your business operations and management can benefit from integrated facility services

Time to Focus on Core Business Tasks

An integrated facility services team will take care of all facility-related services, allowing you to better allocate your time and resources to core business tasks. When you remove the burden of facility management off your shoulders, you can focus more on other aspects of your business, such as designing or building products, communicating with clients, and marketing.

A professional facility service provider will develop a tailored solution to meet a facility’s specific requirements. An experienced team can follow regulatory standards, improve communication between employees, and create a better workplace environment.

Lower Operational Costs

According to research and analysis, 90,600 businesses disappeared between 2013 and 2017 – and this was before the impacts of the global pandemic. The costs associated with running a business continue to increase, impacting the life-expectancy of businesses across various industries.

Switching your facility management to consolidated integrated services led by a professional will reduce operational costs by allowing you to invest in one provider, rather than a handful. Having only one point of contact will also reduce the time and labor required needed to coordinate with the provider. You can leverage economies of scale by streamlining facility operations, making the process more cost-effective.

A knowledgeable integrated facility service team can audit your workplace and identify cost-saving opportunities. They can guide strategic sourcing and allow you to bundle vendor services and contracts to save you money. You may also get discounts or benefits from pre-negotiated rates when a single company handles your facility management services.

Better Response Time

Facility management includes a wide range of services that require attention for smooth business operations. If management is inefficient, you may notice delays in the work process, leading to revenue losses.

When integration is done correctly, you’ll notice that response times will improve. Most efficient integrated facility service teams use modern technology to manage multiple sites and business operations. This allows better collaboration among team members despite their location and improves response time.

Streamlined Operations

Compiling all your facility management activities with a single company can be faster, more cost-effective, and more efficient. When business operations are streamlined, your team will notice more flexibility, improving employee engagement and better relationships with stakeholders.

An integrated solution is a more comprehensive approach because it is simpler to manage a singular point of contact. This will streamline the decision-making process, improve quality, and enforce accountability.

Embracing Integrated Facility Services

The Canadian Facility Management Market stood at USD 32.17 billion in 2020 and is forecasted to grow until 2026. A singular point of contact will make business operations less overwhelming, allowing you to divert your attention to other aspects of your business.

The key to successful integration is hiring a professional company with extensive experience managing facilities. When you find the right provider, a weight will be lifted off your shoulders, allowing you to relax knowing that your management is in good hands.

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