|Day's Range||3,271.89 - 3,293.47|
|52 Week Range||2,648.34 - 3,337.77|
Headlines moving the stock market in real time.
(Bloomberg) -- U.S. stocks struggled near record highs on speculation that a recent rally outpaced the risks to global economic growth. Bonds climbed.The S&P 500 Index wiped out an early advance after Federal Reserve Chairman Jerome Powell said that uncertainties about the outlook remain -- including those around trade policy and the coronavirus. Treasuries extended gains after he noted that the committee revised its language about inflation to clarify that policy makers aren’t comfortable with it below 2%.Fed Leaves Main Rate Unchanged, Saying Policy Is Appropriate“It seems like the markets are refocusing on the possibility that a cut is more likely than a hike, but we would’ve thought that would be equity positive,” said Sameer Samana, senior global market strategist for Wells Fargo Investment Institute. “It’s possible that there’s some profit-taking going on given the bounce-back and the possibility that coronavirus causes the WHO to get more vigilant.”In a highly anticipated decision, the Fed kept its key interest rate unchanged and continued to signal policy would stay on hold for the time being. As the earnings season continued to roll in Apple Inc.’s strong results sent the iPhone maker to a record while General Electric Co.’s outlook topped Wall Street’s estimates. Boeing Co. rallied on news the planemaker burned less cash than expected.Some other corporate highlights:McDonald’s Corp.’s sales in its home market beat expectations.Mastercard Inc., Dow Inc. and T. Rowe Price Group Inc. reported better-than-estimated results.AT&T Inc. topped earnings estimates as cost cuts helped offset steep TV-subscriber losses and higher spending on its media business.EBay Inc., Advanced Micro Devices Inc. and Xilinx Inc. gave lackluster guidance.Elsewhere, oil fell after a government report showed the biggest jump in U.S. crude stockpiles since November. The European Parliament approved Prime Minister Boris Johnson’s Brexit deal, clearing the way for the U.K. to leave the EU on Jan. 31 with an agreement that, for the time being, will avoid a chaotic rupture.Here are some events to watch out for this week:Samsung Electronics, International Paper, Unilever and Shell report on Thursday, followed by South Korean chip maker SK Hynix, Chevron, Caterpillar and Exxon Mobil all on Friday.The Bank of England meeting on Thursday is highly anticipated after a series of dovish comments raised speculation policy makers could lower interest rates.The U.S. reports fourth-quarter GDP Thursday.The U.K. is scheduled to leave the European Union Friday.These are some of the main moves in markets:StocksThe S&P 500 fell 0.1% as of 4 p.m. New York time.The Stoxx Europe 600 Index climbed 0.4%.The MSCI Emerging Market Index dipped 0.5%.CurrenciesThe Bloomberg Dollar Spot Index was little changed.The euro dipped 0.1% to $1.1006.The Japanese yen strengthened 0.1% to 109.06 per dollar.BondsThe yield on 10-year Treasuries dipped seven basis points to 1.59%.Germany’s 10-year yield fell four basis points to -0.38%.Britain’s 10-year yield decreased four basis points to 0.516%.CommoditiesThe Bloomberg Commodity Index dipped 0.6%.West Texas Intermediate crude dipped 0.6% to $53.15 a barrel.Gold rose 0.4% to $1,582 an ounce.\--With assistance from Andreea Papuc, Adam Haigh, Robert Brand, Todd White, David Wilson, Sarah Ponczek, Sophie Caronello and Vildana Hajric.To contact the reporters on this story: Rita Nazareth in New York at firstname.lastname@example.org;Katherine Greifeld in New York at email@example.comTo contact the editors responsible for this story: Jeremy Herron at firstname.lastname@example.org, Rita NazarethFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Based on the early price action and the current price at 3278.75, the direction of the March E-mini S&P; 500 Index futures contract the rest of the session on Wednesday is likely to be determined by trader reaction to the short-term 50% level at 3285.00.
(Bloomberg) -- Oil slumped as U.S. crude inventories rose by the most since November, raising concerns about oversupply.Futures fell 0.3% in New York on Wednesday. The Energy Information Administration reported that American crude stockpiles rose by 3.55 million barrels, more than analysts anticipated. Gasoline supplies reached a record high. The builds overshadowed growing tensions in the Middle East after an attack on Saudi Aramco’s Jazan plant by Yemen’s Houthi rebels sparked a brief price rally.“That overhang of supply is hyper visible in the market,” said Ian Nieboer, managing director at RS Energy Group. “That fear has almost inoculated the market from these big upward swings,” he said.Global benchmark crude prices managed to advance on the back of the potential escalation of conflict in the Middle East, diverging from West Texas Intermediate futures.West Texas Intermediate crude for March delivery lost 15 cents to $53.33 a barrel on the New York Mercantile Exchange.Brent for March settlement rose 30 cents to $59.81 a barrel on the London-based ICE Futures Europe exchange and traded at a $6.48 premium to the U.S. benchmark.Investors also are weighing demand concerns as China, the world’s biggest consumer of oil, tries to contain the Coronavirus outbreak. Confirmed cases have soared to over 6,000 people, surpassing the official number of infections in the country during the SARS epidemic. The increase prompted the World Health Organization to call a meeting on Thursday to consider issuing a global alarm.Though the long-term impact of the coronvirus is unclear, the market is nevertheless being “weighed down by fears of demand destruction,” said Ellen Wald, president of Transversal Consulting and a nonresident fellow at the Atlantic Council’s Global Energy Center.\--With assistance from James Thornhill, Grant Smith and Ann Koh.To contact the reporter on this story: Jackie Davalos in New York at email@example.comTo contact the editors responsible for this story: James Herron at firstname.lastname@example.org, Catherine Traywick, Mike JeffersFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Overnight momentum – A solid day in the US equities overnight that was topped off by Apple beating sales estimates in after-hours trading and provided a fillip to Asia-Pacific risk sentiment. But with little follow-through in the extreme risk fragile Asian market, it will be up to Europe to carry the momentum baton.
Having seen the S&P; briefly trade into negative territory on the year, there was a sense of buy on dip opportunity that gripped US investors, even in the face of broadly negative coronavirus headlines.
(Bloomberg) -- The coronavirus-fueled slide in Treasury yields may have triggered a phenomenon known as convexity hedging -- which also means there could be further downside.The 10-year yield had held within a range of about 1.70% to 1.95% since October, before heading lower late last week as concerns about the spread of coronavirus from China sent investors searching for safe havens. The break below 1.70% on Friday appears to have spurred convexity hedging flows from a variety of market players, adding fuel to the rally, according to TD Securities. What’s more, those flows may exacerbate further declines in yields.“We think that some convexity receiving probably occurred from mortgage investors as well as insurance (variable annuities, general accounts, and fixed index annuities),” Priya Misra, head of global rates at TD Securities, wrote in a client note.The conditions certainly appear ripe for it to happen. Mortgage portfolios tend to bring about convexity hedging flows in interest-rate swaps when 10-year yields fall, and yields dropped more than 30 basis points from the start of the year to as low as 1.57% on Tuesday. Hedging of convexity as part of variable annuities and fixed-index annuities by insurance companies can prompt the flows as stocks fall. The S&P 500 dropped 0.9% on Friday and 1.6% on Monday before rallying 1% on Tuesday.Never Mind Yield Curves, What’s Negative Convexity?: QuickTakeAdditional losses may be on the way should virus fears mount, if history is a guide. The S&P 500 fell more than 8% between mid-November 2002 and early March 2003 amid the Severe Acute Respiratory Syndrome, or SARS, outbreak.“Further risk-negative headlines could take the 10-year back to record lows of 1.35% as convexity receiving exacerbates the move,” Misra said, adding that the bank took profits on long positions as the yield hit 1.6%.To contact the reporter on this story: Stephen Spratt in Hong Kong at email@example.comTo contact the editors responsible for this story: Tan Hwee Ann at firstname.lastname@example.org, Joanna Ossinger, Andreea PapucFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- U.S. stocks climbed the most since October on speculation that efforts to contain the coronavirus will prevent a major economic fallout.The S&P 500 Index rebounded from its worst sell-off in four months, with technology shares leading the charge. Some of the companies that suffered the biggest losses during the latest equity rout, such as chipmakers, casino operators and airlines, advanced on Tuesday. Oil traded above $53 a barrel in New York. Demand for havens cooled, sending Treasuries and gold lower.After the close of regular trading, Apple Inc. jumped on a revenue forecast that topped analyst estimates. Starbucks Corp. reported sales that beat Wall Street’s projections and said it closed more than half of its mainland China locations because of the viral outbreak. Both Advanced Micro Devices Inc. and EBay Inc. gave lackluster guidance.Stocks Turnaround Got Few Cheering With Uncertainty Running HighEquities rallied after a slide that wiped about $1.5 trillion off the value of world stocks since Jan. 20. As it’s too early to assess the full impact of the deadly virus, traders digested some positive readings on U.S. consumer confidence and home prices. With earnings continuing to roll in, investors will be looking for signs of how the disease is affecting operations in China.“We kind of stall a little bit on the Chinese recovery, but we have a lot of other things going in favor of a global recovery anyway,” Stephen Auth, chief investment officer of equities at Federated Investors, told Bloomberg TV. “We still think that’s coming.”Hedge Funds Dumping Growth Stocks Ahead of Tech Megacap EarningsSome other corporate highlights:PulteGroup Inc. climbed after reporting better-than-expected quarterly orders.Lockheed Martin Corp. rose on sales that beat the highest estimate.Acceleron Pharma Inc. surged on mid-stage results for its medicine aimed at treating a type of lung and heart disorder.3M Co. sank after revealing it had received a grand jury subpoena in an environmental probe and saying it would cut 1,500 jobs.Harley-Davidson Inc. slid after quarterly profit missed estimates.Pfizer Inc. tumbled as a drop in sales overshadowed the company’s projections for a better-than-feared 2020.Here are some events to watch out for this week:Wednesday brings reports from GE, Boeing and Facebook; Samsung Electronics, International Paper, Unilever and Shell report on Thursday, followed by South Korean chip maker SK Hynix, Chevron, Caterpillar and Exxon Mobil all on Friday.Federal Reserve policy makers on Wednesday are expected to open 2020 the same way they closed 2019 -- by holding rates steady.Goldman Sachs will hold its first-ever Investor Day on Wednesday.The Bank of England meeting on Thursday is highly anticipated after a series of dovish comments raised speculation policy makers could lower interest rates.The U.S. reports fourth-quarter GDP Thursday.The U.K. is scheduled to leave the European Union Friday.These are the main moves in markets:StocksThe S&P 500 climbed 1% as of 4 p.m. New York time.The Stoxx Europe 600 Index rose 0.8%.The MSCI Emerging Market Index fell 0.1%.CurrenciesThe Bloomberg Dollar Spot Index decreased 0.1%.The euro was unchanged at $1.1019.The Japanese yen weakened 0.2% to 109.14 per dollar.BondsThe yield on 10-year Treasuries rose four basis points to 1.65%.Germany’s 10-year yield climbed four basis points to -0.34%.Britain’s 10-year yield jumped four basis points to 0.552%.CommoditiesThe Bloomberg Commodity Index advanced 0.1%.West Texas Intermediate crude rose to $53.48 a barrel.Gold decreased 0.5% to $1,575.80 an ounce.\--With assistance from Joanna Ossinger, Christopher Anstey, Cormac Mullen, Todd White, Sam Potter, Sophie Caronello and Sarah Ponczek.To contact the reporters on this story: Rita Nazareth in New York at email@example.com;Vildana Hajric in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jeremy Herron at email@example.com, Rita NazarethFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- All-clear or just a break in the sell-off? That’s the question investors are grappling with as U.S. stocks roared back from the worst rout in four months.A day after plunging as much as 1.9% on concern the deadly coronavirus will disrupt the global economy, the S&P 500 jumped more than 1%, the first back-to-back opposite moves of 1% since late August. There’s reason for optimism, as China moved to contain the outbreak, but past instances of wild daily stock swings show an immediate return to calm is unlikely.Take early August, when the S&P 500 plunged 3% after China escalated the trade war with the U.S. by devaluing the yuan. It surged almost 4% in the next three sessions, only to suffer a sell-off of nearly 3% a few days later. Or a 1.9% rally in the S&P in October 2018 after 3.1% loss the day before. The index went on to lose anointer 12% in the next two months. Or a 1.7% gain in the S&P 500 in February 2018 after six-day rout. The index shed another 4.2% in the next two sessions and went nowhere in the next eight months.“What we’re seeing today is your typical move in a wildly volatile situation in which it’s impossible to get the timing right,” said Michael Antonelli, a managing director and market strategist at Robert W. Baird & Co. “People have been saying for months that we’re due for a pullback. The virus isn’t going away any time soon, and if things get worse, that might be the catalyst for a further sell-off.”Even if China succeeds in mitigating the virus’s impact on the economy, the coming days will are loaded with earnings reports, economic data and the Federal Reserve’s policy meeting. Apple Inc. is on tap to report after the bell, followed by companies like Tesla Inc., Microsoft Corp. and Facebook Inc. on Wednesday.To contact the reporter on this story: Elena Popina in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, Jeremy Herron, Dave LiedtkaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The stock markets rallied significantly during the trading session on Tuesday, recovering some of the losses from the Monday session, and looking very likely to trying to fill the gap from the Monday open.
Based on the early price action and the current price at 3256.50, the direction of the March E-mini S&P; 500 Index the rest of the session on Tuesday is likely to be determined by trader reaction to the short-term 50% level at 3259.25.
2020 is not spoiling us so far. From the fears of the World War 3, now we are scared about the global plague. For markets, this is just another part of the puzzle in a game between buyers and sellers.
SYDNEY/TOKYO (Reuters) - Stock and currency markets in Thailand, South Korea and Australia are bearing the brunt of investors' scramble to hedge the mounting risks from a new viral outbreak in China during a long holiday on the mainland. Stock markets from South Korea to Thailand have fallen hard, with transport, tourism, retail and luxury stocks badly hit. Investors sold the Australian and New Zealand dollars as a proxy for the yuan, while also buying their sovereign bonds and U.S. Treasury debt on wagers central banks globally might have to ease policy to offset the economic drag from the virus.
(Bloomberg) -- The deadly coronavirus is threatening the recent rally in emerging assets, but there’s cheap options to buy some protection, according to Morgan Stanley. “We suggest taking advantage of low volatility to hedge a portfolio of EM risk assets,” Morgan Stanley strategists including London-based James Lord wrote in a note Monday. “With volatility at historical lows across many asset classes, a temporary pullback in EM currencies and high-yield credit is possible.”The rapid spread of the novel coronavirus from China, which now has a death toll above 100, has gripped global markets in recent days as investors assess the ability of China and other countries to curb the disease. Developing-nation stocks and currencies have erased this year’s gains.Read more about the virus’s impact on businesses in China.Recommendations from Morgan Stanley include:Long volatility and short-Korean won structures can hedge against a potential global growth slowdown amid expensive spot valuationsUse long U.S. dollar/Mexican peso forward volatility as a hedge against U.S. election risk or an S&P 500 correctionGo long volatility/short Colombian peso structures against a potential tightening in EM funding conditions\--With assistance from Christopher Anstey.To contact the reporter on this story: Joanna Ossinger in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Christopher Anstey at email@example.com, Karl Lester M. YapFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.