Wall Street was headed for an uninspired day of trading Friday.
Angela Weiss/AFP/Getty ImagesStocks were down on Friday, as investors continued to seek a narrative for the markets.
By midmorning, the Dow Jones Industrial Average was down 151 points, or 0.4%. The index slipped 63 points on Thursday to close at 34,751. The S&P 500 and Nasdaq Composite were both down 0.6%.
Stocks have fallen of late, struggling to return to record highs. The S&P 500 is down almost 2% from its all-time high, hit on Sept. 2. Many companies have lowered their quarterly earnings estimates because they can’t access the supplies needed to meet demand. Many firms are incurring higher costs as a result, a threat to profit margins. Thursday, U.S. retail sales beat expectations, a positive, but also a development that could make it more likely that the Federal Reserve will lower its bond purchases at a faster pace.
Investors are also paying close attention to when the Fed will lift short-term interest rates in response to inflation. The Federal Reserve holds its monetary policy meeting next week. The yield on the 2-year Treasury note rose to 0.23%, while the yield on the 10-year Treasury bond rose to 1.38%.
The retail sales data out Thursday was taken as “hawkish” for Fed policy, wrote Tom Essaye, founder of Sevens Report Research. Simply put, the data raise the likelihood of less economic support soon from the Fed.
Overall, some degree of indecisiveness seems to be prevailing in the market. The S&P 500 has largely remained on an upward path in the second half of the year, wrote Fiona Cincotta, senior financial markets analyst at City Index. But for the immediate term, the index is unlikely to push much past its all-time high of 4,536 until it rises about 0.6% above the index’s opening level Friday.
In the 13 trading day stretch ended Thursday, there have been only two days during which 70% or more S&P 500 stocks rose, according to Instinet data, compared to six days of such breadth in the prior 13 trading days.
Still, the index is trading at a level that doesn’t suggest a big correction is currently in the works, Cincotta said.
“It is becoming increasingly apparent that there is little in the way of direction for equity markets at the moment,” said Michael Hewson, an analyst at broker CMC Markets. “Investors are increasingly looking for a narrative, whether it be positive or negative to drive the next move, and are coming up empty-handed.”
Overseas, Hong Kong’s Hang Seng Index rose 1% as Chinese technology stocks surged, with the Hang Seng Tech Index rising 3.5% for one of its best days in the past month. The pan-European Stoxx 600 was 0.4% lower.
Futures contracts for oil and iron ore were both declining. International oil benchmark Brent futures were down 1.2% to around $74 a barrel.
Here are 14 stocks on the move Friday
Invesco (ticker: IVZ) shares surged 4.9% in U.S. trading, after The Wall Street Journal reported that the exchange-traded fund giant was in merger talks with State Street ‘s asset management business.
China’s tech giants broadly rose in Hong Kong, with Alibaba (BABA) rising 2.2%, Tencent (0700.H.K.) 2.4%, Baidu (9888.H.K.) 2.4%, and JD.com (9618.H.K.) 4.6%.
European travel stocks were buoyed amid reports that the U.K. would significantly loosen travel rules related to the Covid-19 pandemic. British Airways owner IAG (IAG.U.K.) climbed 6% as InterContinental Hotels Group (IHG.U.K.) lifted 2.4%.
Commerzbank (CBK.Germany) moved 3.6% higher, after local German media reported that U.S. private-equity group Cerberus was considering building a greater stake in the bank after the German elections later this month.
Evergrande (3333.H.K.) dropped 3.8%, bringing weekly losses for the shares to 28.5%, as China’s embattled and highly indebted property giant remains under threat of restructuring.
Diamondback Energy (FANG) stock gained 3.9% after the oil producer announced a share buyback plan that could be as large as $2 billion.
Las Vegas Sands (LVS) stock initially fell, then rose 1% after getting downgraded to Hold from Buy at Jefferies. The stock is down more than 9% this week as potential Chinese regulation on the casino business has battered the stock. Earlier this week, Goldman Sachs analysts said most of the bad news was already reflected in the stock.
Wynn Resorts (WYNN) fell 0.5% on Friday, as losses have begun to moderate. The stock is down more than 17% this week.
Lincoln National (LNC) stock rose 3% after the company announced a $9.4 billion reinsurance agreement with a division of Denver Insurance Company.
O’Reilly Automotive (ORLY) stock fell 0.9% after getting downgraded to Neutral from Buy at Bank of America.
Write to Jack Denton at jack.denton@dowjones.com and Jacob Sonenshine at jacob.sonenshine@barrons.com
"stock" - Google News
September 17, 2021 at 09:03PM
https://ift.tt/3nOTJcS
Stock Market Today: Dow Slips as Invesco Jumps and China Tech Surges - Barron's
"stock" - Google News
https://ift.tt/37YwtPr
https://ift.tt/3b37xGF
Bagikan Berita Ini
0 Response to "Stock Market Today: Dow Slips as Invesco Jumps and China Tech Surges - Barron's"
Post a Comment