Wall Street Falls on Investor Nerves About Interest Rates, Tech


Despite Friday’s decline the S&P eked out a gain of 0.5 percent for the week to show its second weekly gain in a row.

Equity investors were jittery as the 10-year Treasury yield reached its highest level since January 2014 as a bond selloff continued for a second day, driving the yield curve steeper after two weeks of flattening. [US/]

Benchmark 10-year notes last fell 12/32 in price to yield 2.9583 percent, from 2.914 percent Thursday.

The S. & P. 500 Index

Position of the S. & P. 500 index at 1-minute intervals on Friday.











When yields are high, investors favor bonds over equities including sectors such as consumer staples and real estate, which promise high dividends and slow, predictable growth. But high interest rates can boost bank profits so the financial sector managed to show a 0.05 percent gain, making it the best performer out of the S&P’s 11 industry sectors.

The consumer staples sector was the biggest percentage decliner with a 1.7 percent fall, led by PepsiCo.

“We’re seeing a follow through from yesterday’s action when the key was weakness in consumer staples. We came to this earnings season with very optimistic expectations and we’re seeing some very fundamental bottoms up issues at these companies,” said Michael O’Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.

Procter & Gamble fell 2.9 percent on top of a 4.2 percent drop the day before when it said shrinking retailer inventories and higher costs squeezed its margins.

Philip Morris International also had a second day of declines after getting crushed due to weak shipment volumes in its quarterly report.

Apple fell 4.1 percent, making it the biggest drag on the major indexes after Morgan Stanley estimated weak demand for its latest iPhones, a day after Taiwan Semiconductor raised fears of softer smartphone sales.

Alphabet, Facebook, Intel and Microsoft are among the major technology companies reporting next week.

S&P 500 companies are expected to report their strongest first-quarter profit gains in seven years. Of the 87 companies that have reported so far, 79.3 percent have topped profit expectations, according to Thomson Reuters I/B/E/S.

Declining issues outnumbered advancing ones on the NYSE by a 2.05-to-1 ratio; on Nasdaq, a 1.68-to-1 ratio favored decliners.

The S&P 500 posted 12 new 52-week highs and 22 new lows; the Nasdaq Composite recorded 54 new highs and 51 new lows.

On U.S. exchanges 6.45 billion shares changed hands compared to the 6.92 billion average for the last 20 trading days.

(Additional reporting by April Joyner in New York, Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta and Chizu Nomiyama)

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Wall Street Higher as Syria Fears Ease, Earnings in Focus


At 2:26 p.m. ET, the Dow Jones Industrial Average rose 227.2 points, or 0.93 percent, to 24,587.34, the S&P 500 gained 22.91 points, or 0.86 percent, to 2,679.21 and the Nasdaq Composite added 51.62 points, or 0.73 percent, to 7,158.27.

3-Month Treasury Bills

High rate at weekly auction.











The S&P 500’s technology sector was the biggest boost to the benchmark with a 0.8-percent increase followed by the healthcare index which was up 0.97 percent.

UnitedHealth provided the second-biggest boost to the S&P from a single stock a day ahead of its earnings report with a 2.9 percent gain, just behind Microsoft Corp, which was up 1.2 percent.

Merck rose 2.2 percent after the company presented positive data on its cancer drug Keytruda, also boosting the S&P healthcare index.

Shares of optical components makers, including those of Acacia Communications and Oclaro, took a beating after Reuters reported that the U.S. government was banning American companies from selling components to Chinese telecom equipment maker ZTE Corp <0000063.SZ>. Acacia fell 34.4 percent, compared with a 13-percent drop for Oclaro.

JB Hunt Transport Services jumped 6.6 percent after the trucking company’s profit topped estimates.

Bank of America was up 1 percent after a better-than-expected increase in quarterly profit.

Netflix fell 2 percent. The company was due to reports results after the closing bell on Monday.

Advancing issues outnumbered declining ones on the NYSE by a 2.75-to-1 ratio; on Nasdaq, a 2.04-to-1 ratio favored advancers.

The S&P 500 posted 11 new 52-week highs and no new lows; the Nasdaq Composite recorded 66 new highs and 27 new lows.

(Additional reporting by Sruthi Shankar in Bengaluru; Editing by Anil D’Silva and Nick Zieminski)

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Wall Street Gains on Earnings Optimism, Waning Syria Jitters


BlackRock gained 1.5 percent after the asset manager’s quarterly profit rose more than expected.

The earnings season begins in earnest on Friday with reports from JPMorgan Chase & Co, Citigroup Inc and Wells Fargo & Co.

Analysts expect quarterly profit for S&P 500 companies to rise 18.4 percent from a year ago, in what would be the biggest gain in seven years, according to Thomson Reuters I/B/E/S.

Jobless Claims

Weekly number of people who have filed for unemployment benefits for the first time.











“People are looking forward to earnings season,” said Tracie McMillion, head of global asset allocation strategy at Wells Fargo Investment Institute in Winston-Salem, North Carolina. “Market participants are not wanting to miss out if (earnings are) as good as the forecasts say they will be.”

The Dow Jones Industrial Average rose 293.6 points, or 1.21 percent, to 24,483.05, the S&P 500 gained 21.8 points, or 0.83 percent, to 2,663.99, and the Nasdaq Composite added 71.22 points, or 1.01 percent, to 7,140.25.

Investor sentiment was also boosted by the weekly U.S. initial jobless claims report, which pointed to sustained labor market strength.

Facebook Inc was a notable laggard among technology stocks, falling 1.5 percent following a 5.3 percent gain over the past two days when Chief Executive Mark Zuckerberg testified before Congress on the social network’s data security.

Bed Bath & Beyond Inc shares dived 20.0 percent after the company’s full-year profit forecast missed estimates.

Advancing issues outnumbered decliners on the NYSE for a 1.20-to-1 ratio and on the Nasdaq, for a 1.84-to-1 ratio.

Volume on U.S. exchanges was 6.12 billion shares, compared to the 7.27 billion average for the full session over the last 20 trading days.

(Additional reporting by Sruthi Shankar in Bengaluru and Chuck Mikolajczak in New York; Editing by Nick Zieminski and Leslie Adler)

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Wall Street Rises as Chinese President Eases Trade Worries


Facebook shares added the most gains to the S&P 500, rising 4.5 percent after Chief Executive Mark Zuckerberg began his testimony before Congress and took questions from lawmakers. It was the biggest one-day percentage gain for the stock in nearly two years.

The S. & P. 500 Index

Position of the S. & P. 500 index at 1-minute intervals on Tuesday.









Zuckerberg’s testimony aimed to strike a conciliatory tone in an attempt to blunt possible regulatory fallout from the privacy scandal engulfing his social network.

The energy index had the highest percentage gain among the S&P’s 11 major sectors, adding 3.3 percent as oil broke above $70 a barrel.

The Dow Jones Industrial Average rose 428.9 points, or 1.79 percent, to 24,408, the S&P 500 gained 43.71 points, or 1.67 percent, to 2,656.87 and the Nasdaq Composite added 143.96 points, or 2.07 percent, to 7,094.30.

Only utilities and real estate, which are sensitive to interest rates, posted losses after U.S. producer prices rose more than expected in March, indicating that inflation is strengthening, which could push interest rates up further.

However, the increase in producer prices did not prompt broader concerns about future market performance.

“It’s not enough to offset better expectations about the overall economy,” said Kate Warne, investment strategist at Edward Jones in St. Louis.

U.S. stocks will face a major test in coming weeks as first-quarter earnings pour in. JPMorgan Chase, Citigroup and Wells Fargo will kick off the earnings season on Friday.

3-Month Treasury Bills

High rate at weekly auction.









Analysts expect quarterly profits for S&P 500 companies to rise 18.5 percent from a year ago, which would be the biggest gain in seven years, according to Thomson Reuters I/B/E/S.

Sprint Corp shares jumped 17.1 percent after reports that the company had restarted merger talks with T-Mobile US Inc. T-Mobile shares rose 5.7 percent.

Advancing issues outnumbered declining ones on the NYSE by a 3.16-to-1 ratio; on Nasdaq, a 3.93-to-1 ratio favored advancers.

The S&P 500 posted six new 52-week highs and one new low; the Nasdaq Composite recorded 53 new highs and 32 new lows.

Volume so far on U.S. exchanges was 7.14 billion shares, compared with the 7.33 billion-share average for the full session over the last 20 trading days.

(Additional reporting by Sweta Singh and Diptendu Lahiri in Bengaluru; Editing by Chizu Nomiyama and Jonathan Oatis)

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Wall Street Rises but Pares Gains Late After Report of FBI Raid


“Even if it ultimately ends up being nothing, the initial reaction is almost always negative in the market,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

Investors are looking forward to the start of earnings season to provide a sustained lift to U.S. stocks, with big banks, such as JPMorgan Chase, Citigroup and Wells Fargo, set to report first-quarter results on Friday.

Analysts expect quarterly profits for S&P 500 companies to rise 18.5 percent from a year ago, which would be the biggest gain in seven years, according to Thomson Reuters I/B/E/S.

The Dow Jones Industrial Average rose 46.34 points, or 0.19 percent, to 23,979.10, the S&P 500 gained 8.69 points, or 0.33 percent, to 2,613.16 and the Nasdaq Composite added 35.23 points, or 0.51 percent, to 6,950.34. AveXis Inc rose 81.6 percent after Swiss drugmaker Novartis offered to buy the gene therapy company for $8.7 billion.

3-Month Treasury Bills

High rate at weekly auction.









Merck shares rose 5.2 percent after the drugmaker’s blockbuster cancer drug, Keytruda, met the main study goal of helping previously untreated lung cancer patients live longer.

Shares of Leucadia National Corp jumped 11.6 percent after the company said it would sell most of its non-financial assets to focus on investment banking and advisory services.

Declining issues outnumbered advancing ones on the NYSE by a 1.10-to-1 ratio; on Nasdaq, a 1.13-to-1 ratio favored advancers.

Volume on U.S. exchanges was 6.28 billion shares, compared to the 7.3 billion average for the full session over the last 20 trading days.

(Additional reporting by Chuck Mikolajczak in New York and Sweta Singh and Diptendu Lahiri in Bengaluru; editing by Nick Zieminski and G Crosse)

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Dow, S&P Climb for Third Day in a Row on Easing Trade Worries


Earnings forecasts have increased sharply since Congress approved sweeping changes to the U.S. tax law late last year, with first-quarter earnings growth expected to be the highest in seven years.

Balance of Trade

The deficit is the excess of imports over exports for goods and services. Amounts are rounded, in billions of dollars, seasonally adjusted.









The Dow Jones Industrial Average rose 240.92 points, or 0.99 percent, to 24,505.22, the S&P 500 gained 18.15 points, or 0.69 percent, to 2,662.84 and the Nasdaq Composite added 34.45 points, or 0.49 percent, to 7,076.55.

Advancing issues outnumbered declining ones on the New York Stock Exchange by a ratio of 2.76 to 1, while it was the first day of more new 52-week highs on NYSE than 52-week lows since March 13.

On Wednesday, the Dow dropped more than 500 points after China and the United States imposed tariffs on each other’s products, but closed up 230 points after President Donald Trump’s top economic adviser Larry Kudlow said the administration was involved in a “negotiation” with China rather than a trade war.

Facebook, Amazon, Alphabet and Netflix – collectively known as the “FANG” group – were up between 0.3 percent and about 3 percent.

Facebook Chief Executive Mark Zuckerberg said the company had not seen “any meaningful impact” on usage or ad sales since the data privacy scandal.

Amazon rose 2.9 percent after being repeatedly hammered this week by Trump’s attacks on the online retailer.

About 6.4 billion shares changed hands on U.S. exchanges. That compares with the 7.3 billion daily average for the past 20 trading days, according to Thomson Reuters data.

(Additional reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila and James Dalgleish)

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Wall Street Wavers After Strong Rally, Tech Stocks Struggle


But the sentiment has improved after reports that the countries were willing to renegotiate tariffs and trade imbalances.

At 13:00 p.m. ET, the Dow Jones Industrial Average was up 0.67 percent at 24,365.61 and the S&P 500 rose 0.29 percent to 2,666.16.

The Nasdaq Composite fell 0.33 percent at 7,196.70.

5-Year Treasury Notes

High yields at auction.











Facebook dropped 2.3 percent as it continued to be weighed down by data privacy issues. The company faces an investigation by the U.S. Federal Trade Commission to explain how it allowed data of 50 million users get into the hands of a political consultancy.

“Tech and FANG are still trying to figure out what the way forward is, and the market is dealing with the aftermath of a massive rally. It’s hard to maintain that kind of momentum,” said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.

Another weak spot in the tech space was Nvidia, which fell 2.8 percent after the company temporarily suspended self-driving tests across the globe.

Tesla shares dropped nearly 4 percent after the U.S. National Transportation Safety Board opened a field investigation of a fatal Tesla crash and major vehicle fire near Mountain View, California, last week.

Twitter fell more than 7 percent after short-seller Citron Research said it was short on the stock, adding that the company was “most vulnerable” to privacy regulations.

Advancing issues outnumbered decliners on the NYSE for a 1.38-to-1 ratio and for a 1.20-to-1 ratio on the Nasdaq.

(Reporting by Sruthi Shankar and Sweta Singh in Bengaluru; Editing by Anil D’Silva)

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