Reported about 2 months ago
The recent revision of US payroll numbers, revealing a decrease of 818,000 in net job gains, is not expected to significantly alter the Federal Reserve's outlook on interest rates, according to Deutsche Bank Securities economist Brett Ryan. He emphasizes that while the Fed recognizes the slowing labor market, the revision indicates a relatively stable trend over the past months, supporting a possible interest rate cut in September. Despite this, he suggests that there won't be aggressive cuts immediately, and awaits Fed Chair Jerome Powell's details from the upcoming Jackson Hole speech.
Source: YAHOO
Reported about 2 months ago
On August 21, 2024, the Nasdaq Composite led the market gains, closing up by 0.57%, as the major indices finished the trading session positively. Analysts discussed how employment data revisions and insights from the Federal Reserve's September meeting could impact stock performance.
Source: YAHOO
Reported about 2 months ago
US stocks rebounded on Wednesday, led by gains in the S&P 500 and Nasdaq, after Federal Reserve minutes indicated a potential interest rate cut in September if inflation continues to decrease. The S&P 500 rose approximately 0.4%, and the Nasdaq climbed nearly 0.6%. Key earnings reports from Target and Macy's influenced investor sentiment, with Target shares soaring over 11% due to strong performance, while Macy's saw a decline of nearly 13%. Meanwhile, revisions to employment data revealed a downward trend in job growth, further shaping expectations around Fed policy.
Source: YAHOO
Reported about 2 months ago
BofA Securities has downgraded American Express (AXP) from a Buy to a Neutral rating, maintaining a price target of $263 per share. The downgrade is attributed to challenges in billings volume growth and travel spending.
Source: YAHOO
Reported about 2 months ago
Ken Leech, co-CIO of Western Asset Management, has taken a leave of absence following a Wells notice from the SEC regarding past trade allocations involving Treasury derivatives. This investigation is also being examined by the Department of Justice, and Western Asset has initiated its own internal inquiry. The news has led to a significant drop in shares for Franklin Resources, Western Asset's parent company.
Source: YAHOO
Reported about 2 months ago
US stocks surged on Wednesday after the Federal Reserve's meeting minutes indicated a strong possibility of a September interest rate cut if inflation continues to ease. The S&P 500 rose by approximately 0.4%, followed closely by the Nasdaq Composite which increased by nearly 0.6%, signaling investor optimism as the market seeks to recover from an earlier sell-off. The Fed's insights, alongside corporate earnings reports from retailers such as Target and Macy's, are shaping expectations for monetary policy and market growth.
Source: YAHOO
Reported about 2 months ago
Most Federal Reserve officials indicated a willingness to cut interest rates in September if inflation continues to decrease, according to the minutes from their July meeting. Currently at a near 25-year high of 5.3%, a cut could ease borrowing costs for consumers and potentially boost stock prices. Fed Chair Jerome Powell is expected to provide additional insights during a speech at the annual central bankers' symposium, while external political pressures surrounding timing due to the upcoming presidential election remain a concern.
Source: YAHOO
Reported about 2 months ago
Rick Rieder, BlackRock's chief investment officer of global fixed income, urges the Federal Reserve to implement a 50 basis points rate cut in September to spur economic growth and alleviate consumer debt pressures. He highlights troubling trends in delinquencies and warns that while the economy has decelerated, it hasn't faced a crisis yet. Market indicators remain mixed, with consumer spending showing resilience, prompting debates on the pace of future rate cuts.
Source: YAHOO
Reported about 2 months ago
Food inflation is evident, but identifying the causes of skyrocketing grocery prices is challenging. Despite significant increases in food prices since 2021, an analysis by Yahoo Finance found little evidence of price gouging among major sectors such as agriculture and retail. While profits in some areas rose faster than costs, overall, many companies absorbed higher expenses without significantly raising prices. Various contributing factors include rising labor costs, supply chain issues, and elevated transportation costs, making it hard to pinpoint any single villain in the high food prices affecting consumers.
Source: YAHOO
Reported about 2 months ago
As 2024 winds down, Judy Brown, a wealth advisor, emphasizes the importance of year-end tax planning for Americans. She suggests aligning financial goals with current tax laws, gathering necessary documents, and understanding that tax efficiency is a lifelong pursuit, rather than a one-time task. Proper preparation can lead to better financial outcomes in the future.
Source: YAHOO
Reported about 2 months ago
The US economy experienced a downward revision of 818,000 jobs as of March 2024, indicating a potential earlier cooling in the labor market than previously thought. The Bureau of Labor Statistics reported significant declines in the professional and business services sector, as well as in leisure and hospitality. Despite this reduction, experts suggest the job growth rate remains healthy overall, cautioning that the data does not fundamentally alter broader economic trends. The revision arrives amidst indications of an easing labor market, which may influence Federal Reserve policy discussions at the upcoming Jackson Hole Symposium.
Source: YAHOO
Reported about 2 months ago
Homebuilders have enjoyed a favorable market due to a shortage of housing supply since the pandemic, but this advantage is diminishing as inventories of new and existing homes are increasing. Companies like Meritage Homes and Toll Brothers are starting to see a rise in competition and a decline in order counts as buyer hesitancy persists, even amidst lower mortgage rates. This shift may indicate a transition from a seller's market to a buyer's market as more homes come to market and buyers demand better terms.
Source: YAHOO
Reported about 2 months ago
Target's shares jumped 11% after strong second quarter results exceeded expectations, while Macy's fell over 12% due to declining sales. JD.com stocks also slid 4% following Walmart's sale of its stake, marking the end of their partnership amidst challenges in China's economy.
Source: YAHOO
Reported about 2 months ago
Facing a potential court ruling that could disrupt its distribution agreements with Apple and Samsung, Google may have to pivot to a significant advertising campaign to retain its search market share. With billions at stake, particularly the over $20 billion Google pays Apple annually to remain the default search engine, losing this arrangement could mean a drastic revenue decrease. Analysts suggest that if forced to make changes, Google might promote its search engine more vigorously to attract users directly.
Source: YAHOO
Reported about 2 months ago
The Bureau of Labor Statistics has revised US job numbers, revealing 818,000 fewer jobs than previously reported for the year ending March 2024, raising concerns about potential Federal Reserve rate cuts. While Target and TJX Companies saw positive quarterly results, Macy’s stocks dropped significantly after disappointing same-store sales.
Source: YAHOO
Reported about 2 months ago
US stocks saw gains on Wednesday, with the S&P 500 and Nasdaq Composite climbing ahead of the Federal Reserve's upcoming meeting minutes. The optimistic sentiment comes from reports indicating that many Fed officials view a September rate cut as likely if inflation continues to decrease. Target's strong quarterly results boosted its shares significantly, while Macy's struggled as it reported a sales decline. The focus on the labor market remains critical, especially after revisions revealed fewer jobs than initially reported. Overall, investors remain cautious as they anticipate Jerome Powell's speech at the Jackson Hole symposium.
Source: YAHOO
Reported about 2 months ago
The recent revision of US job figures by the Bureau of Labor Statistics has raised concerns regarding the stability of the labor market, with an adjustment downwards by 818,000 jobs over a year. Investment advisor Blair duQuesnay from Ritholtz Wealth Management emphasizes the need for financial preparedness, suggesting individuals save 3 to 6 months of living expenses to cushion against layoffs, which could affect nearly every sector during economic downturns.
Source: YAHOO
Reported about 2 months ago
The California State Senate has introduced a legislation, SB 1047, aimed at regulating artificial intelligence. The bill requires developers to conduct safety testing on large language models and gives the Attorney General access to unredacted safety protocols upon request. This initiative follows lawsuits against AI companies like Anthropic regarding copyright infringement claims.
Source: YAHOO
Reported about 2 months ago
The US Bureau of Labor Statistics has revised payroll figures downward by 818,000, yet the market reacted positively with a rally in stocks. Experts note that while the revision was larger than expected, the labor market is adding approximately 175,000 jobs monthly, indicating ongoing growth. Analysts suggest that although the economy is gradually slowing down, it is more aligned with a 'soft, but bumpy landing' rather than a severe downturn. The unemployment rate remains a critical focus for the Federal Reserve amidst these adjustments.
Source: YAHOO
Reported about 2 months ago
In a recent discussion, J.P. Morgan Asset Management's ETF strategist Jon Maier emphasized the potential of actively managed ETFs for investing in AI and the semiconductor sector. With the AI industry still in its early stages, Maier recommends a diversified approach through these ETFs, which can include semiconductor companies and others contributing to the generative AI ecosystem. The insights come ahead of Nvidia's upcoming quarterly results, which are anticipated to provide further market direction.
Source: YAHOO
Reported about 2 months ago
Consumer stress in the U.S. has surged, with over 60% living paycheck to paycheck. The LegalShield Consumer Stress Index recorded a significant rise in July, indicating increased inquiries about financial issues, including bankruptcy and foreclosure. This trend underlines the growing need for legal assistance among those facing economic challenges.
Source: YAHOO
Reported about 2 months ago
The recent revision of nonfarm payroll numbers for March 2024, which was lowered by 818,000—the largest drop since 2009—suggests a cooler labor market. Stephen Dover, chief market strategist at Franklin Templeton, interprets this data as indicative of a 'soft landing' for the economy. He believes that such adjustments signal potential interest rate cuts, following a period of overextended market conditions. As such, he advises maintaining a balanced investment portfolio focused on quality companies.
Source: YAHOO
Reported about 2 months ago
Kamala Harris, Vice President and presidential candidate, is successfully garnering support from key figures on Wall Street, distinguishing herself from President Biden's more contentious relationship with corporate America. Her policies, which focus on economic affordability for everyday Americans, have attracted endorsements and significant financial backing from prominent Wall Street leaders. Notable supporters like former American Express CEO Ken Chenault emphasize her understanding of the need for a strong government in a market-based economy, contrasting her approach with that of Donald Trump. As she positions her campaign, Harris aims to address inflation while balancing corporate taxation and economic growth concerns.
Source: YAHOO
Reported about 2 months ago
Retail earnings reports from major companies like Walmart, Target, and Macy's reveal a complex portrait of consumer behavior, highlighting an emphasis on omnichannel strategies and value-focused shopping. Insights show a significant increase in e-commerce growth, driven by consumer preferences for in-store pickup after online orders. While promotional efforts and sales spikes suggest strong demand, shoppers are increasingly gravitating towards discount and off-price retailers.
Source: YAHOO
Reported about 2 months ago
Bond market traders are adjusting their strategies ahead of the Federal Reserve's upcoming Jackson Hole symposium and expected interest rate cuts. Fixed-income strategist Collin Martin predicts potential rate cuts and emphasizes a shift from previously recommended extended duration investments toward opportunities in investment-grade corporate bonds, as current market dynamics present reduced attractiveness for longer-duration bonds.
Source: YAHOO