|Day's range||2,931.50 - 2,956.20|
|52-week range||2,346.58 - 2,956.20|
A growing number of Wall Street analysts are banking on the Federal Reserve cutting rates at least twice this year, and the first could come as early as next month.
The next Federal Reserve rate cut may come from weakening inflation, rather than weakening economic growth, according ton one top economist.
The Federal Reserve did not move on rates at the conclusion of its policysetting meeting June 19, but committed itself to acting “as appropriate to sustain the expansion.”
The Strait of Hormuz, the world’s most sensitive oil-transportation choke point, remains in focus, after Iran shot down a U.S. military drone near the waterway.
World stock markets gained on Thursday, with the U.S. benchmark S&P 500 hitting a record high, while the 10-year U.S. Treasury yield fell below 2% as investors digested a signal from the Federal Reserve of potential U.S. interest rate cuts as soon as its next meeting. The dollar weakened after the Fed, the U.S. central bank, on Wednesday indicated a marked shift in sentiment even as it left its benchmark rate unchanged for now. “We have obviously morphed into the Fed taking the pole position as far what’s driving the market right now, both domestically and on a global basis as well,” said Mike Mullaney, director of global markets research at Boston Partners.
Tesla Inc. may sell about as many vehicles in the second quarter as Wall Street is predicting, but that would be the year’s high-water mark for the Silicon Valley car maker, analysts at Goldman Sachs said in a note Thursday.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Treasuries rallied and the dollar fell after central banks around the world continued a shift toward easier monetary policy. U.S. stocks climbed to records before pulling back amid rising tensions with Iran.The S&P 500 opened at an all-time high, spurred by speculation the Federal Reserve will cut rates soon enough to avert an economic slump. The benchmark index cut the gain by half after President Donald Trump said that “you’ll find out” when asked about possible retaliation for Iran shooting down a U.S. drone. Energy shares led the gain as crude surged more than 5%. The Cboe Volatility Index rose above 15.The geopolitical tensions briefly overshadowed fresh impetus for risk assets from the Fed, Bank of Japan and Bank of England, all of which signaled a readiness to support growth. The 10-year U.S. Treasury note yield dropped below 2% for the first time since November 2016, while the greenback sank the most since January. Gold surged toward $1,400 an ounce.“In the big scheme of things, it’s a concern because it creates uncertainty,” said Ernie Cecilia, chief investment officer at Bryn Mawr Trust Co. “From a longer-term perspective, we’d think that any issues would get resolved diplomatically.”Traders are now pricing in a virtual certainty the U.S. central bank will cut rates by July, Fed fund futures show. Seven of 17 Fed officials now think it will be appropriate to lower the benchmark overnight rate by a half-percentage point by the end of the year, according to updated projections published Wednesday. Fed Chairman Jerome Powell cited “uncertainties” in the outlook that have increased the case for a rate reduction as officials seek to prolong the near-record American economic expansion.“The Fed did a great job walking what had to be a pretty fine line between giving the markets what they were wanting, the removal of ‘patience,’ the knowledge that the Fed does stand ready to cut rates, if needed,” Chris Gaffney, president of world markets at TIAA Bank, said in an interview at Bloomberg’s New York headquarters.These are the main moves in markets:Stocks The S&P 500 Index rose to a record 2,956.20, before trading up 0.6% as of 1:25 p.m. New York time. The Nasdaq Composite Index gained 0.5% and the Dow Jones Industrial Average increased 0.6%.The Stoxx Europe 600 increased 0.4% to the highest in about seven weeks.The MSCI Emerging Market Index surged 1.6% to the highest in more than six weeks.The MSCI Asia Pacific Index climbed 1.4% to the highest in more than six weeks. CurrenciesThe Bloomberg Dollar Spot Index declined 0.6%, to the lowest in at least 12 weeks.The euro rose 0.5% to $1.1277, the strongest in more than a week. The yen strengthened 0.5% at 107.52 per dollar, the strongest in more than five months.The British pound increased 0.5% to $1.2696, the strongest in more than a week.The MSCI Emerging Markets Currency Index rose 1%.BondsThe yield on 10-year Treasuries fell 3 basis points to 1.99%.Germany’s 10-year yield eased 3 basis points to -0.32%.Britain’s 10-year yield declined 6 basis points to 0.81%, after touching the lowest level in almost three years. CommoditiesWest Texas Intermediate rose 5.5% to $56.72 a barrel, the highest in about three weeks. Gold increased 1.9% to $1,386 an ounce, the highest in about six years. The Bloomberg Commodity Index jumped 1.7%.\--With assistance from Namitha Jagadeesh.To contact the reporters on this story: Vildana Hajric in New York at firstname.lastname@example.org;Sarah Ponczek in New York at email@example.comTo contact the editors responsible for this story: Jeremy Herron at firstname.lastname@example.org, Dave LiedtkaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shares of Lifeway Foods Inc. shot up 44% toward an 11-month high in active afternoon trading Thursday, after the Illinois-based maker of probiotic, fermented beverages announced plans to enter the cannabis market with a drink infused with cannabidiol, or CBD. Trading volume swelled to about 1 million shares, compared with the full-day average of about 37,000 shares. The company said it will enter the market through its Plantiful + CBD product, once it is legalized at the federal level by the Food and Drug Administration. The company said it is also planning to file a comment in support of the FDA developing a science-based structure for the sale of products that contain CBD. plans to release Plantiful + CBD in a biodegradable 3.5-ounce bottle. "Mental health is as important as physical well-being, and CBD shows promise as way to promote lowered anxiety and stress relief," said Chief Executive Julie Smolyansky. "Science has shown that probiotics are natural inflammation reducers, and we believe that the addition of CBD will create an unmatched combination in the beverage space." The stock, on track for the highest close since July 2018, has more than doubled (up 122%) year to date, while the ETFMG Alternative Harvest ETF has run up 30% and the S&P 500 has gained 17%.
U.S. stock indexes rise Thursday with the S&P 500 hitting an intraday record after the Federal Reserve signaled that policy easing may be forthcoming.
President Donald Trump on Thursday suggested Iran had mistakenly shot down a U.S. drone, as he highlighted stocks hitting record territory, a point he has previously linked to his stewardship of the nation.
The selloff in Carnival Corp.'s stock following the cruise operators latest earnings report shouldn't surprise investors, as it is the sixth-straight quarter that results disappointed. Although earnings per share and sales have beat expectations the past six quarters, the stock has still declined after each of the reports, by an average of 6.9%, including Thursday's 9.3% drop. The stock is now on track to close at the lowest level since Jan. 3, 2019, after Carnival beat earnings and revenue expectations but cut its full-year profit outlook. The stock has now shed 24% over the past year, while the S&P 500 has gained 6.3%.
What would it take to prevent the Federal Reserve from easing monetary policy next month? Two things are prerequisites - a genuine breakthrough in the U.S. China trade dispute and a dramatic turnaround in the economic data. The only real debate among Fed watchers is whether there is a quarter-point or a half-point cut in benchmark interest rates after the next policy meeting on July 30-31.
The Dow Jones Industrial average retreated from its best levels on Thursday and haven assets surged as President Donald Trump used cryptic language to describe the possibility of increased hostilities against Iran. The Dow was most recently trading up about 120 points, or 0.4%, at 26,619, but had been at 26,761 at its intrasession peak, while the S&P 500 index was up 0.5% at 2,940 off its highs, after setting an intraday record at 2,956.20. The president was asked if the U.S. would strike back after Iran shot down a U.S. drone in its airspace. He said at a news conference with Canadian President Justin Trudeau: "you'll soon find out." Trump issued a tweet saying that Iran "made a very big mistake," which he repeated at the news conference. Markets had been more buoyant after the Federal Reserve strongly implied that a rate cut could be warranted if economic conditions worsen.
At the opening price, the collaboration software company has a market cap of $23.1 billion. With a market value of $23.1 billion, Slack is worth more than half of the companies in the large-cap S&P 500. Instead, the company made its existing private stock available to the public.
John Templeton once famously said, “Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria.” Leon Cooperman, the billionaire chairman and CEO of Omega Advisors, says we could be “knocking on the door of euphoria” if the rally continues.
Papa John's International Inc. has announced an additional $80 million investment in its franchisee assistance program, which indicates that the company's turnaround isn't happening just yet, BTIG analysts said in a note. The investment will start in the third quarter of fiscal 2019 and will be used to bolster the brand by getting its newest ambassador and board member, Shaquille O'Neal, involved in the branding, and for royalty relief. The investment extends through 2020. "This suggests to us that any meaningful sales turnaround has yet to take hold and franchisees are not yet capable of standing on their own with regard to unit economics," wrote BTIG. "We continue to believe that menu and marketing are the two most meaningful levers for management to pull but expect a turnaround to take longer than initially expected as the bulk of these efforts is still to come." BTIG thought the company would begin to pullback on royalty relief in the second half of 2019, with a total of about $5 million per quarter invested in the last two quarters. Papa John's has struggled since its founder John Schnatter became embroiled in a racially-charged controversy and stepped down from the company. Papa John's shares are down about 2% in Thursday trading, but have rallied 21.1% in 2019. The S&P 500 index has gained 17.2% for the year to date.
Don’t get too excited about the stock market’s big move this morning. According to Bespoke Investment Group’s macro strategist George Pearkes, the S&P 500 has opened up more than 1% to reach a record high on 10 occasions since 1996. The market’s 0.9% opening today comes within a hair of being the 11th occasion, vaulting the S&P 500 to a record high of 2954 in morning trading.
Oil prices spiked and defense and oil stocks jumped after officials said Iran shot down a U.S. drone, sending tensions between the two countries even higher.
Slack Technologies Inc. shares jumped in Thursday morning trading following the workplace-communications company's direct listing. Shares opened at $38.50, 48% above a reference price of $26 set late on Wednesday, before heading higher. The company opted for a direct listing, rather than a traditional IPO, meaning that Slack didn't raise additional capital in the process of going public. The direct-listing tactic was employed by Spotify Technology SA as well in early 2018. Slack's listing comes as the Renaissance IPO ETF has risen 41% so far this year and as the S&P 500 has gained 18% in that time
Shares of Grocery Outlet Holding Corp. debuted with a big rally, as they opened 41% above the initial public offering price of $22. The first trade was at $36.00 at 11:45 a.m. Eastern, and has pared some gains to trade recently at $30.70. The IPO had priced late Wednesday well above the expected range of $18 to $19, which was raised on Tuesday from a previous expected range of $15 to $17. The California-based extreme-value retailer sold 17.2 million shares to raise about $378 million. The company has gone public at a time that the Renaissance IPO ETF has rallied 39.3% year to date and the S&P 500 has gained 17.5%.