|Day's range||26,527.66 - 26,752.30|
|52-week range||21,712.53 - 26,951.81|
Fed Chairman Jerome Powell has a message for the White House on Tuesday morning: political influence inflicts "damage" on the central bank.
During the recent market swoon in May, the iShares Edge MSCI Min Vol USA ETF held its gains, while the S&P 500 fell.
As shown in the accompanying graph, the S&P 500, including dividends, has been underperforming the so-called Total Market Index for over 18½ years. The total market in the U.S. consists of approximately 3,600 listed companies: large-cap, microcap, and everything in between. For this reason, the accompanying graph plots specific mutual funds that any investor could have easily purchased.
Consumer debt is growing to worrisome levels. Ben Mohr, senior research analyst of fixed income at investment consultant Marquette Associates, calculated that total U.S. consumer debt hit $14 trillion in the first quarter of 2019, surpassing the roughly $13 trillion of leverage accumulated in credit cards, auto loans and mortgages and other debt back in 2008, when those souring loans and securities pegged to them helped to send global markets into a tailspin (see attached chart). Mohr told MarketWatch that the increase in student loans — often cited as a source of consternation for economists and strategists — saw a notable increase.
Some ten years since the 2008-09 U.S. housing bubble, which sparked a global financial crisis, worries about the health of the global housing market persist.
President Donald Trump Tuesday morning thanked himself for a stock market that has been mostly clambering to new heights. The 45th president via Twitter touted the buoyancy of the equity markets, saying: “Stock Market is heading for one of the best months (June) in the history of our Country. Stock Market is heading for one of the best months (June) in the history of our Country.
U.S. stocks, bonds, gold and oil are all rallying together this week, sustained by the Federal Reserve reassurance that it may lower interest rates soon to help offset the “cross currents” in the global economy generated by the Trump administration’s erratic trade policy. U.S. stocks rallied to new records last week after the Federal Reserve’s suggestion, repeated by Fed Chairman Jerome Powell as recently as Tuesday, that easier monetary policy may be on the horizon.
Stocks in Asia were subdued on Wednesday after U.S. Federal Reserve Chairman Jerome Powell tempered expectations for a potential interest rate cut.
All eyes are on the Donald Trump-Xi Jinping meeting this weekend at the G-20 summit. One Fed Governor doesn’t see a big rate cut next month.
Stocks aren’t in “melt-up” mode yet, but the June rebound could soon begin to foster the same sort of “fear of missing out” feeling that prevailed in April if speculators come off the sidelines, says one quantitative analyst.
Comments Tuesday by Fed Chairman Jerome Powell and St. Louis Fed President James Bullard suggested an interest-rate cut in July was not a done deal.
Gold soared to an almost six-year high on Tuesday on escalating U.S.-Iran tensions, while equity markets slid on disappointing economic data and uncertainty on whether the Federal Reserve will cut interest rates in July as has been expected. Fed Chairman Jerome Powell said in a speech the U.S. central bank is insulated from short-term political pressures as policymakers wrestle with whether to cut rates amid slowing growth as President Donald Trump has demanded. Equity markets have rallied this month in anticipation that Fed policymakers would cut rates, but Powell's remarks cast doubt on those expectations when he referred to the Fed's independence.
Information technology shares and those related to telecoms suffered sharp losses Tuesday, as commentary from the Federal Reserve moderated hopes for a substantial reduction of benchmark borrowing costs. Rate-cut hopes have thus far underpinned equity market's record rally. The Dow Jones Industrial Average fell 0.7%, to 26,548, those for the S&P 500 index finished 1% lower at 2,917, with the info tech sector losing 1.8% and the communication services sector shedding 1.6% to lead the 11 S&P 500 sectors lower Tuesday. Shares of those companies, including Facebook Inc. have been among the best performers as the broader market carved out new records, with the S&P 500 setting its first closing record since April 30 on Thursday. As tech-related stocks got clobbered, the technology-heavy Nasdaq Composite Index endured the brunt of the day's selling, down 1.5% at 7,885, representing the worst day for the index sine June 3. Speaking at the Council on Foreign Relations in New York at 1 p.m. Eastern Time, Fed Chairman Jerome Powell said the rate-setting Federal Open Market Committee was "grappling with is whether these uncertainties will continue to weigh on the outlook and thus call for additional policy accommodation," in prepared remarks. Before that comment, St. Louis Fed President James Bullard, a dovish FOMC member who had advocated for a rate cut, said he didn't endorse an aggressive cut to benchmark rates, which stand at a range of 2.25%-2.50%.
U.S. stocks slump after Federal Reserve Chairman Jerome Powell said he wanted to avoid a knee-jerk reaction to any one data point
Fed Chairman Jerome Powell had glowing things to say about the idea of a ‘make up’ inflation strategy, suggesting that might be one outcome of the central bank’s year-long strategic review.
Gold has exploded for an 11% gain over the past month, giving long-suffering gold bugs a chance for some chest-puffery as prices reach levels not seen in more than six years on the back of unsettling geopolitical developments. Count Robert Kiyosaki, the best-selling author of “Rich Dad, Poor Dad,” among those basking in the yellow glow of gold’s resurgence
President Trump bared his brass knuckles again in a trade spat with China, threatening to raise tariffs on billions of dollars in imports because talks to resolve the dispute are going “too slowly.”
MARK HULBERT CHAPEL HILL, N.C. (MarketWatch) — There’s a two-out-of-three chance that, on Dec. 31, the stock market will be higher than it is today. That certainly appears to be good news, since the Dow Jones Industrials Average (DJIA) is already sitting on a year-to-date gain of more than 15% (assuming dividends were reinvested).
The Dow Jones Industrial Average midday Tuesday retreated to the lows of the session, along with the broader market, after a Federal Reserve member signaled that substantial rate cuts next month may not be needed. The Dow declined by more than 100 points, or 0.4%, at 26,625, representing Tuesday's nadir, as St. Louis Federal Reserve President James Bullard said that a rate cut by as many as half a percentage point, or 50 basis points, may not be warranted. Bullard said I don't think we have to take huge action," Bullard said in an interview on Bloomberg Television. Bullard was the lone dissenter last Wednesday among members of the rate-setting Federal Open Market Committee, which voted to keep rates steady at a range between 2.25% and 2.50%. Bullard would likely advocate for a more modest 25 basis point cut in July. Market participants have been betting that the FOMC will cut rates by at least 50 basis points this year due to slowing economic expansion that has arguably been exacerbated by the Sino-American tariff clash. The S&P 500 index was down 0.6% at 2,926, while the Nasdaq Composite Index gave up 1.1% to reach 7,930, as the broader market deepened its losses. Rate cuts for Wall Street translate to lower borrowing costs to corporations and are seen as bullish for buying if the economy doesn't fall into a recession.
St. Louis Federal Reserve President Governor James Bullard said that a half percentage-point cut was unlikely in July, causing markets to slide to their lows of the day.
St. Louis Fed President James Bullard said Tuesday that, as things stand now, he would not favor a half-point interest-rate cut in July. "I don't think we have to take huge action," Bullard said in an interview on Bloomberg Television. Bullard dissented at the FOMC meeting last week in favor of a quarter-point cut. Bullard said a quarter-point cut would be more of an "insurance" move, which was all that was needed at this stage.
Technically speaking, the U.S. benchmarks’ June price action remains comfortably bullish ahead of key meetings at this week’s G-20 summit, writes Michael Ashbaugh.
Wall Street lost ground on Tuesday as simmering geopolitical and trade concerns, combined with disappointing economic data, kept buyers at bay and investors looked to remarks from U.S. Federal Reserve chair Jerome Powell expected later in the session. Technology companies led all three major U.S. stock indexes into the red ahead Powell's speech and the question-and-answer session to follow, which will be scrutinized by market participants for clues as to when and by how much the central bank will cut key interest rates.