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Stocks sink, yields tumble, oil prices steady: Stock market news today

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U.S. stocks sank and oil prices held steady Tuesday as new data showed fresh signs of labor market cooling and declining factory orders from businesses.

The S&P 500 (^GSPC) declined nearly 0.6%, and the Dow Jones Industrial Average (^DJI) slipped around the same amount. The technology-heavy Nasdaq Composite (^IXIC) slid 0.5%.

Oil prices steadied, with WTI crude oil — the U.S. benchmark — wavering around $80 a barrel. After big gains Monday, oil was back in its four-month trading range after OPEC+ announced it would slash output by 1.16 million barrels per day.

On the economic front, vacancies at U.S. employers fell to 9.93 million from 10.5 million, a bigger fall than expected. On the other hand, quits were up and layoffs were down, data from the Bureau of Labor Statistics showed. Separately, factory orders fell 0.3%, also lower than anticipated.

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Some economists view the slowdown in the number of open job positions as “progress” to reaching the Fed’s goal of an equilibrium between supply and demand in the labor market.

“While the Fed will welcome the softening in the data, officials will put much more stock in Friday’s employment report and will continue to raise rates at the coming meetings to ensure further progress is made toward softer labor market conditions and lower inflation,” Matthew Martin, U.S. economist at Oxford Economics, wrote in a note to clients on Tuesday.

As Martin noted, another data print on which Wall Street will be keeping a close eye is Friday’s jobs report. Economists surveyed by Bloomberg expect the report to show 240,000 jobs created last month. This would be lower than the average job gains of 343,000 over the last six months.

Bond yields moved downward after the data prints. The yield on the benchmark 10-year U.S. Treasury note dipped to 3.35% Tuesday.

Tuesday’s moves came after the Dow rose and the S&P 500 closed up 0.4% on Monday but the Nasdaq 100 lagged, falling 0.3%. Bond yields were down as manufacturing activity slumped to the lowest level since May 2020, signaling further declines could be coming as credit conditions tighten.

Meanwhile, Federal Reserve Bank of St. Louis President James Bullard said Monday that the continued strength in the labor market gives the Fed room to fight inflation. Bullard also commented on OPEC’s decision to cut output, suggesting it could potentially make the Fed’s job of lowering inflation more challenging as oil prices increase.

Separately, Federal Reserve Governor Lisa Cook also highlighted the continued tightness in the labor market.

“We are still going to see inflation from that, but we’ve seen wage gains moderating quite a bit,” she said.

Still, the Federal Reserve has stuck with inflation as its top concern, even amid the recent banking turmoil that has shown signs of easing.

“The Fed rate expected for the next meeting was largely flat against this backdrop, climbing a modest 1.6 basis points to 4.973% with a 63% chance priced in for a 25 basis-point hike next month,” Jim Reid and colleagues at Deutsche Bank wrote in a note to clients.

However, the recent banking troubles triggered by the failures at Silicon Valley Bank and Signature Bank are “not over yet,” JPMorgan Chase CEO Jamie Dimon said Tuesday.

UNITED STATES - SEPTEMBER 22: Jamie Dimon, CEO of JPMorgan Chase, testifies during the Senate Banking, Housing, and Urban Affairs Committee hearing titled Annual Oversight of the Nations Largest Banks, in Hart Building on Thursday, September 22, 2022. (Tom Williams/CQ-Roll Call, Inc via Getty Images)UNITED STATES - SEPTEMBER 22: Jamie Dimon, CEO of JPMorgan Chase, testifies during the Senate Banking, Housing, and Urban Affairs Committee hearing titled Annual Oversight of the Nations Largest Banks, in Hart Building on Thursday, September 22, 2022. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
Jamie Dimon, CEO of JPMorgan Chase, testifies during the Senate Banking, Housing, and Urban Affairs Committee hearing on Thursday, September 22, 2022. (Tom Williams/CQ-Roll Call, Inc via Getty Images)

In his closely watched annual letter to shareholders, Dimon outlined the damages of financial system turmoil on all banks and urged lawmakers to not “overreact” with more regulation.

Elsewhere, Credit Suisse chairman Axel Lehmann apologized for the bank’s failure to save the institution as the firm had been draining deposits for months.

Meanwhile, under the current backdrop, the rally in equities will likely waver given the recent bank failures. The oil surprise and a slowdown in growth could send stocks back to their low levels seen in 2022, said JPMorgan strategist Marko Kolanovic.

In single-stock moves, shares of AMC Entertainment Holdings (AMC) plunged Tuesday after a settlement would allow AMC to convert APE preferred shares into common AMC stock.

And Disney’s feud with Florida Gov. Ron DeSantis escalated. CEO Bob Iger called the governor’s retaliation “anti-business” and “anti-Florida.” Shares of Disney (DIS) ticked down Tuesday.

Shares of Virgin Orbit Holdings, Inc. (VORB) sank after the company filed for bankruptcy late Monday after laying off about 85% of its staff in March.

C3.ai, Inc. (AI) shares fell about 26% Tuesday after Kerrisdale Capital, a firm that holds a short position in AI stock, said it has sent a letter to the software maker’s auditor.

Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv

 

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Calgary breaks all-time record in housing starts but increasing demand keeps inventory low – CBC.ca

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Soaring housing demands in Calgary led to an all-time record for new residential builds last year, but inventory levels of completed and unsold units remained low due to demand outpacing supply.

According to the latest report from Canada Mortgage and Housing Corporation (CMHC), total housing starts increased by 13 per cent in Calgary, reaching a total of 19,579 units with growth across all dwelling types in the city.

That compares to a decline of 0.5 per cent overall for housing starts in the six major Canadian cities surveyed by CMHC.

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Calgary also had the highest housing starts by population.

“Part of the reason why we think that might have happened is that developers are responding to low vacancies in the rental market,” said Adebola Omosola, a housing economics specialist with CMHC.

“The population of Calgary is still growing, a record number of people moved here last year, and we still expect that to remain at least in the short term.”

Earlier this year, the Calgary Real Estate Board also predicted that demand, especially for rental apartments, wouldn’t let up any time soon. 

Industry can cope with demand, expert says

According to numbers from the report, average construction times were higher in 2023 for all dwelling types except for apartments.

The agency’s report suggests the increase in the number of under-construction residential projects might mean builders are operating at or near full capacity.

However, there’s optimism the construction industry can match the increasing need.

Brian Hahn, CEO of BILD Calgary Region, said despite concerns around about construction costs, project timelines and labour shortages, the industry has kept up with the demand for new builds.

Demand is expected to remain robust, but the construction industry can keep up, according to BILD Calgary region CEO Brian Hahn.
Demand is expected to remain robust, but the construction industry can keep up, according to BILD Calgary Region chief executive officer Brian Hahn. (Shaun Best/Reuters)

“I’ve heard that kind of conversation at the end of 2022 and I heard it in 2023,” Hahn said.

“Yet here we are early in 2024, and January and February were record numbers again.”

Hahn added he believes the current pace of construction will continue for at least the next six months and that the industry is looking at initiatives to attract more people to the trades.

Increase in row house and apartment construction

Construction growth was largely driven by new apartment projects, making up almost half of the housing starts in Calgary in 2023.

The federal housing agency says 9,034 apartment units were started that year, an increase of 17 per cent from the previous year. Of those, about 54 per cent were purpose-built rentals.

Apartments made up around two-thirds of all units under construction, CMHC said, with the total number of units under construction reaching 23,473.

Growth, however, was seen across all dwelling types. Row homes increased by 34 per cent from the previous year while groundbreaking on single-detached homes grew by two per cent.

“Notwithstanding challenges, our members and the industry counterparts that support them managed to produce a record amount of starts and completions,” Hahn said.

“I have little doubt that the industry will do their very best to keep pace at those levels.”

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Ottawa real estate: House starts down, apartments up in 2023 – CTV News Ottawa

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Rental housing dominated construction in Ottawa last year, according to a new report from the Canada Mortgage and Housing Corporation (CMHC).

Residential construction declined significantly in 2023, with housing starts dropping to 9,245 units, a 19.5 per cent decline from the record high observed in 2022. But while single-detached and row housing starts fell compared to 2022, new construction for rental units and condominiums rose.

“There’s been a shift toward rental construction over the past two years. Rental housing starts made up nearly one third of total starts in 2023, close to double the average of the previous five years,” the report stated.

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Apartment starts reached their highest level since the 1970s.

“The trend toward rental and condominium apartment construction follows increased demand in these market segments due to population growth, households looking for affordable options, and some seniors downsizing to smaller units,” the CMHC said.

Demand from international migration and students, the high cost of home ownership, and people moving to Ottawa from other parts of Ontario were the main drivers for rental housing starts in 2023. The CMHC says rental and condominium apartment starts made up 63 per cent of total starts in 2023, compared to the average of 37 per cent for the period 2018-2022.

There was a modest increase in rental housing starts in 2023 over the record-high seen the year prior and a jump in new condominiums. The report shows 5,846 new apartments were built in Ottawa last year, up 2.1 per cent compared to 2022.

Housing starts in Ottawa by year. (CMHC)

Big demand for condos

The CMHC said condo starts reached a new high in 2023, increasing 3 per cent from 2022 numbers.

“As of the end of 2023, there were only 13 completed and unsold condominium units, highlighting continued demand for new units,” the CMHC said.

Condominum starts increased in areas such as Chinatown, Hintonburg, Vanier and Alta Vista, as well as some suburban areas like Kanata, Stittsville, and western Orléans. Condo apartment construction declined in denser parts of the city like downtown, Lowertown and Centretown, the report says.

Taller buildings are also becoming more common, as the cranes dotting the skyline can attest. The CMHC notes that buildings with more than 20 storeys accounted for nearly 10 per cent of apartment structure starts in 2022 and 2023, compared to an average of 2 per cent over the 2017-2021 period. The number of units per building also rose 7 per cent compared to 2022.

Apartment building heights in Ottawa by year. (CMHC)

Single-detached home construction down significantly

The number of new single-detached homes built in Ottawa last year was the lowest level seen in the city since the mid 1990s, CMHC said.

“The Ottawa area experienced a slowdown in residential construction in 2023, driven by a significant decline in single-detached and row housing starts,” the CMHC said.

Single-detached housing starts were down 45 per cent compared to 2022. Row house starts dropped by 38 per cent compared to 2022, marking a third year of declines in a row.

“Demand for single-detached and row houses also declined in 2023. Higher mortgage rates and home prices have led to a shift in demand toward more affordable rental and condominium units,” the report said.

There were 1,535 single-detached housing starts in Ottawa last year, 208 new semi-detached homes and 1,678 new row houses.

The majority of single-detached and row housing starts were built in suburban communities such as Barrhaven, Stittsville, Kanata, Orléans and rural parts of the city.

“Increased construction costs resulting from higher financing rates and inflation that occurred in 2022 and 2023 contributed to the decline in construction in the region,” the CMHC said. 

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Trump’s media company ticker leads to fleeting windfall for some investors

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A man looks at a screen that displays trading information about shares of Truth Social and Trump Media & Technology Group, outside the Nasdaq Market site in New York City, U.S., March 26.Brendan McDermid/Reuters

Possible confusion over the new stock symbol for former President Donald Trump’s Truth Social (DJT-Q) saw some investor brokerage balances briefly jump by hundreds of thousands of dollars on Tuesday, the first day Trump’s “DJT” ticker traded.

Several people complained on social media about briefly seeing the value of their DJT stock holdings on Charles Schwab platforms inflated to figures more in line with what they would be worth if the shares traded at the level of the Dow Jones Transportation Average.

Some users said they faced a similar issue in pre-market hours on Morgan Stanley’s E*Trade trading platform.

Shares of Trump Media & Technology Group opened Tuesday at $70.90, while the Dow Jones Transportation Average started the session at 15,937.73 points.

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For one trader, the Schwab brokerage balance jumped by more than $1 million due to the error, according to a screen grab shared on social media platform X. Reuters was unable to contact the trader or independently verify the brokerage balance.

“It sure was nice seeing millions in the account, even if it wasn’t real,” another person, going by the username @DanielBenjamin8, who faced the issue in his E*Trade account, posted on X.

Two X users and one on Reddit surmised that the inflated balances were due to the ticker symbol for the company being nearly identical to the index.

A spokeswoman for Charles Schwab said that certain users on some of Schwab’s trading platforms saw their brokerage balances briefly inflated due to a technical issue.

The issue has been resolved and investors are able to trade equities and options on Schwab platforms, she said. Schwab declined to describe the exact cause of the issue.

E*Trade did not immediately respond to a request for comment outside of regular business hours.

Trump Media & Technology Group and S&P Dow Jones Indices, which maintains the Dow Jones Transportation Average Index, did not immediately comment on the issue.

While social media users said the issue appeared to have been resolved, many rued not being able to cash out their supposed gains from the error.

“I better go tell my boss that I’m actually not retiring,” the trader whose account balance had briefly jump by more than $1 million, wrote on X.

Trump Media & Technology Group shares surged more than 36% on Tuesday in their debut on the Nasdaq that comes more than two years since its merger with a blank-check firm was announced.

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