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Stock market news: August 28, 2019

U.S. stocks pared losses and Treasury yields pared some losses, with investors awaiting further developments in the U.S.-China trade war.

Energy stocks led advances, with these tracking a rally domestic crude oil prices (CL=F), after the EIA reported a greater-than-expected, 10 million-barrel weekly decline in U.S. crude inventories. Meanwhile, overseas, European equities and sterling slid as political concerns mounted.

Here were the main moves in the market, as of 4:10 p.m. ET:

  • S&P 500 (^GSPC): +0.65%, or 18.78 points

  • Dow (^DJI): +1.00%, or 258.20 points

  • Nasdaq (^IXIC): +0.38%, or 29.94 points

  • 10-year U.S. Treasury yield (^TNX): -2.4 bps to 1.466%

  • 30-year U.S. Treasury yield (^TYX): -2.9 bps to 1.938%

London’s FTSE 250 (^FTMC) was off more than 0.5%, and the pound plunged after British Prime Minister Boris Johnson confirmed he planned to suspend parliament just days after Members of Parliament (MPs) return from a summer recess, in a move to try and narrow the available window of time available for dissenters to try and block a no-deal Brexit. The formal reopening of parliament is set to take place October 14.

Formally known as prorogation, the controversial move increases the likelihood of the U.K. crashing out of the European Union (EU) by the October 31 deadline without a deal – an outcome many economists have said would spell disaster for the British economy. The pound (GBPUSD=X) dropped to below 1.22 per dollar overnight following initial reports of Johnson’s plan from BBC, before paring some losses.

Government debt in both Europe and the U.S. was bid higher Wednesday morning, as concerns over growth in global economy mounted.

During intraday trading the yield on the U.S. 10-year bond fell about 4 basis points below that of the 2-year note, diving further into an inversion. The 30-year yield dropped below 2% to an all-time low of 1.905% earlier in the session, putting it below the yield on U.S. government debt with a 3-month duration.

STOCKS: Tiffany tops earning expectations, Peloton files for IPO

Tiffany (TIF) reported stronger-than-expected earnings results for its fiscal second quarter, while sales fell short of estimates amid ongoing softness in purchases by foreign tourists visiting Tiffany’s key domestic locations. Tiffany posted earnings of $1.12 per share, or 7 cents a share ahead of expectations, on revenue of $1.05 billion, slightly short of the $1.06 billion expected.

The company reported a comparable same-store sales decline of 3% in constant currency for the quarter, versus expectations for just a 1.5% decrease. However, comp sales in Asia Pacific unexpectedly rose 1%, versus a decline of nearly the same magnitude expected.

The sign of a Tiffany & Co. store is pictured in Pasadena, California, U.S., November 28, 2017. REUTERS/Mario Anzuoni

“With the tough comparison to last year’s strong performance in the first half behind us, and in spite of the headwinds of weak demand from foreign tourists, currency exchange rate pressures and continuing business disruptions in Hong Kong, we are actively managing what is in our control and positioning our brand to win – accelerating new product introductions and keeping a visible profile,” Tiffany CEO Alessandro Bogliolo said in a statement.

Meanwhile, the newest high-growth startup revealed its financial results ahead of a planned public debut.

Indoor fitness company Peloton filed its prospectus Tuesday afternoon ahead of an initial public offering (IPO), and plans to list under the ticker “PTON.”

As with many high-profile, highly valued tech “unicorns” including Uber (UBER), Lyft (LYFT) and the soon-to-be-public We Company, the Peloton reported surging sales, coupled with yawning losses.

The digital indoor workout firm posted $915 million in revenue for its most recent full fiscal year ended June 30, more than double its sales for last year. However, net losses surged to $195.6 million during the same period, yawning from net losses of just $47.9 million in the year prior. Connected fitness subscribers, or those paying for memberships, more than doubled during the year to 511,000, while overall Peloton account-holders total 1.4 million.

  • Iran warns US of response to any action over Saudi attack
    Finance
    The Canadian Press

    Iran warns US of response to any action over Saudi attack

    TEHRAN, Iran — Iran warned the U.S. that any action taken against it following an attack on Saudi oil installations will "immediately" be met with a response from Tehran, its state-run news agency reported Wednesday, further raising Mideast tensions.Iran's president and foreign minister

  • Finance
    Bloomberg

    Saudis Keep Oil Flowing as They Patch Up Wounded Industry

    (Bloomberg) -- Saudi Arabia reassured anxious customers that crude exports will keep flowing as normal and its industry can recover quickly from the worst attack in its history.Crude prices fell after Tuesday’s long-awaited statement from the kingdom -- which pumped almost 10% of the world’s oil before

  • Sweden’s Government Reveals Surplus Budget as Growth Stalls
    Finance
    Bloomberg

    Sweden’s Government Reveals Surplus Budget as Growth Stalls

    (Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Sweden’s Social Democrat-led government is sticking to a surplus regime even as the labor market is showing signs of a rapid deterioration and economic growth has stalled.At the 2020 budget

  • The Latest: State media says Iran sends US official warning
    Finance
    The Canadian Press

    The Latest: State media says Iran sends US official warning

    DUBAI, United Arab Emirates — The Latest on tensions in the Persian Gulf (all times local):1:15 p.m.Iran's state-run news agency is reporting that Iran sent an official warning through Swiss diplomats to the U.S. that any action taken against Tehran "will face an immediate answer."That&

  • Fed May Boost Balance Sheet But Evercore Warns It’s Not QE Redux
    Finance
    Bloomberg

    Fed May Boost Balance Sheet But Evercore Warns It’s Not QE Redux

    (Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. This week’s volatile moves in U.S. money markets raise the odds that the Federal Reserve will start expanding its balance sheet, just weeks after it stopped running down its portfolio of

  • FedEx Tumbles After Cutting Forecast on Trade War, Slowdown
    Finance
    Bloomberg

    FedEx Tumbles After Cutting Forecast on Trade War, Slowdown

    (Bloomberg) -- Blaming a weakening global economy, FedEx Corp. slashed its profit outlook in the latest sign that trade tensions are dragging down U.S. corporate titans. The shares plunged.The forecast signaled deepening trouble for the courier as the U.S. and China battle over tariffs -- a standoff

  • Finance
    The Canadian Press

    Oil price drops further on hope for recovery of Saudi output

    LONDON — The price of oil fell back further on Wednesday after the Saudi government said half of production that was knocked out by an attack over the weekend had already had been restored.Benchmark U.S. crude was down 42 cents to $58.92 per barrel in electronic trading Wednesday. The contract fell $3.56

  • U.K. Inflation Rate Falls to Lowest Since 2016 on Clothes
    Finance
    Bloomberg

    U.K. Inflation Rate Falls to Lowest Since 2016 on Clothes

    (Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. U.K. inflation fell to its lowest rate since the end of 2016, driven down by the price of computer games and clothing.Consumer prices rose 1.7% in August from a year earlier, down from 2.1%

  • EU chief: The risk of a no-deal Brexit "remains very real"
    Finance
    The Canadian Press

    EU chief: The risk of a no-deal Brexit "remains very real"

    STRASBOURG, France — The risk of Britain leaving the European Union without a divorce deal remains "very real," European Commission chief Jean-Claude Juncker declared Wednesday as EU lawmakers debated the ramifications of a no-deal Brexit.Speaking at the European Parliament in Strasbourg, France

  • As Trump Crows About Stocks, It’s Radio Silence From Trudeau
    Finance
    Bloomberg

    As Trump Crows About Stocks, It’s Radio Silence From Trudeau

    (Bloomberg) -- Call it Canadian modesty.While President Donald Trump has tweeted about the U.S. stock market more than 30 times this year, his Canadian counterpart Justin Trudeau hasn’t mentioned stocks once on his Twitter feed, even as indexes in both countries hit record highs.Trump has used the words

  • Enbridge Oil Pipeline Avoids Minnesota Supreme Court Challenge
    Finance
    Bloomberg

    Enbridge Oil Pipeline Avoids Minnesota Supreme Court Challenge

    (Bloomberg) -- Enbridge Inc.’s Line 3 oil pipeline replacement and expansion project won’t face a challenge in front of the Minnesota Supreme Court from groups opposing it, removing one potential roadblock for the already-delayed proposal.The court on Tuesday denied a petition for further review from

  • Nomura’s 40% Surge Gives CEO Room to Address Woes at Home
    Finance
    Bloomberg

    Nomura’s 40% Surge Gives CEO Room to Address Woes at Home

    (Bloomberg) -- Nomura Holdings Inc.’s investors are cheering the firm’s early progress in cutting $1 billion of costs at its global trading and investment banking business. Reviving the domestic retail operation may prove more of a challenge.Japan’s biggest brokerage has jumped 40% from this year’s low

  • The Latest: Key European lawmaker assails UK govt shutdown
    Finance
    The Canadian Press

    The Latest: Key European lawmaker assails UK govt shutdown

    STRASBOURG, France — The Latest on Britain's impending departure from the European Union (all times local):10:35 a.m.The European Parliament's top Brexit official is taking aim at British Prime Minister Boris Johnson's government and anti-Europe parties in the U.K. over the shutdown of the

  • The Latest: Markets cautious ahead of Fed rate decision
    Finance
    The Canadian Press

    The Latest: Markets cautious ahead of Fed rate decision

    WASHINGTON — The Latest on the Federal Reserve's monetary policy meeting (all times local):4:40 a.m.Stock markets are subdued and the price of oil is down slightly as investors look ahead to an expected interest rate cut from the Federal Reserve and monitor the fallout from attacks on Saudi Arabia

  • Bonds Rally, Stocks Fluctuate as Traders Await Fed: Markets Wrap
    Finance
    Bloomberg

    Bonds Rally, Stocks Fluctuate as Traders Await Fed: Markets Wrap

    (Bloomberg) -- Bonds rallied globally while stocks drifted as investors marked time until the Federal Reserve concludes its policy meeting Wednesday, at which officials are expected to cut interest rates again and possibly move further to calm overnight lending markets. The dollar strengthened.Government

  • Cash-starved Air India putting crews on low-fat diet
    Finance
    The Canadian Press

    Cash-starved Air India putting crews on low-fat diet

    NEW DELHI — Cash-starved Air India is putting its crew on a diet, changing their inflight menu to special low-fat meals.Dhananjay Kumar, the state-run airline's spokesman, said Wednesday that the objective is to provide healthy and cost-effective meals to crews on domestic and international flights.Kumar

  • Finance
    Bloomberg

    Aramco Attacks Had ‘Zero’ Impact on Saudi Revenue, Minister Says

    (Bloomberg) -- Attacks that slashed half of Saudi Arabia’s oil output had “zero” impact on the kingdom’s revenues, Finance Minister Mohammed al-Jadaan said.Jadaan told Bloomberg TV in Riyadh on Wednesday that there was no impact on the Saudi economy and the country would continue to spend “as we need

  • EU’s Juncker Says the Risk of a No-Deal Brexit Is Now ‘Palpable’
    Finance
    Bloomberg

    EU’s Juncker Says the Risk of a No-Deal Brexit Is Now ‘Palpable’

    (Bloomberg) -- European Commission President Jean-Claude Juncker said on Wednesday that the risk of a no-deal Brexit on Oct. 31 is now “palpable,” sparking a drop in the pound.Juncker, speaking to the European Parliament in Strasbourg, France, after a meeting with U.K. Prime Minister Boris Johnson on

  • Asian stocks mixed after oil falls, Wall Street advances
    Finance
    The Canadian Press

    Asian stocks mixed after oil falls, Wall Street advances

    BEIJING — Asian stock prices were mixed Wednesday after oil prices fell back and Wall Street advanced.Benchmarks in Shanghai and Seoul advanced while Tokyo and Hong Kong slipped.Markets steadied following a decline Tuesday in crude prices that spiked after a weekend attack on a Saudi oil facility. The

  • Finance
    Bloomberg

    From Farm to Cup, Big Coffee Taps Blockchain to Lure Millennials

    (Bloomberg) -- Sustainability-minded millennials are increasingly demanding to know where their morning cup of joe comes from, and some of the world’s top coffee companies are turning to technology for help.Roasters including J.M. Smucker Co. and Jacob Douwe Egberts are joining a blockchain initiative

  • Finance
    Bloomberg

    Iran Sends Note to U.S. Denying Role in Aramco Attack: ISNA

    (Bloomberg) -- Iran has sent the U.S. a note denying it had a role in the attacks on Saudi oil facilities and warning that it would respond to any action against it, the Iranian Students News Agency reported Wednesday.The message was sent to the U.S. via the Swiss diplomatic mission, which acts as a

  • Finance
    Bloomberg

    Iran Sends Note to U.S. Denying Role in Aramco Attack: ISNA

    (Bloomberg) -- Iran has sent the U.S. a note denying it had a role in the attacks on Saudi oil facilities and warning that it would respond to any action against it, the Iranian Students News Agency reported Wednesday.The message was sent to the U.S. via the Swiss diplomatic mission, which acts as a

  • Finance
    Bloomberg

    Germany Isn't Listening to Mario Draghi

    (Bloomberg Opinion) -- The European Central Bank’s decision last week to reactivate quantitative easing has put monetary policy back in the spotlight. But as the bank’s president Mario Draghi says, the currency union would be in much better shape if countries with strong fiscal positions opened their

  • Finance
    Bloomberg

    Germany Isn't Listening to Mario Draghi

    (Bloomberg Opinion) -- The European Central Bank’s decision last week to reactivate quantitative easing has put monetary policy back in the spotlight. But as the bank’s president Mario Draghi says, the currency union would be in much better shape if countries with strong fiscal positions opened their

  • UK envoy tips trade deal with Australia months after Brexit
    Finance
    The Canadian Press

    UK envoy tips trade deal with Australia months after Brexit

    CANBERRA, Australia — Britain's top trade envoy said Wednesday that she expects to strike a free trade deal with Australia within months of leaving the European Union.British International Trade Secretary Liz Truss met with Australian Trade Minister Simon Birmingham to lay the foundations for a bilateral