Stocks rally stalls near all-time highs: Markets wrap

(Bloomberg) — Stocks rallied sharply after a rally that wiped out early August losses and pushed the market closer to its all-time highs.

Most Read from Bloomberg

Shares were volatile in early New York trading, following an eighth straight day of gains for the S&P 500 — the longest winning streak in 2024. Citigroup Inc. said stocks saw positive moves as investor sentiment improved following upbeat economic data last week. Strategists lead. By Chris Montague. They said there were about $16 billion in new long bets added to S&P 500 futures.

Besides flows, data and stabilization, the recent rally has been fueled by bets the Federal Reserve is hinting at a rate cut. A few days before Jerome Powell’s speech in Jackson Hole, major US wages revisions will have Wall Street’s attention.

↵ ↵ ↵

Listen to the podcast here on Apple, Spotify or wherever you listen.

Goldman Sachs Group Inc. and Wells Fargo & Co. Economists on Wednesday expected the government’s preliminary benchmark revisions to show wages growth in the year to March was at least 600,000 weaker than currently estimated, according to JPMorgan Chase & Co. While forecasters see a decline of about 360,000, Goldman Sachs suggests it could be more than a million.

“Markets, having recently experienced growth scares that have led to concerns that the Fed is behind the curve, will be watching Wednesday’s release of the benchmark revision to see if the market’s initial reaction is indeed correct,” said Quincy Krosby at LPL. Finance.

S&P 500 futures were volatile. The 10-year Treasury yield fell three basis points to 3.84%.

Company Highlights:

• Palo Alto Networks Inc. rose after it released a quarterly profit outlook that beat Wall Street’s expectations and raised its share buyback plan.

• Patients who took Eli Lilly & Co.’s blockbuster weight-loss shot were 94% less likely to develop diabetes in a three-year study illustrating the long-term health benefits of treating obesity.

• The European Union said on Tuesday it plans to introduce an additional 9% tariff on Teslas imported from China, as it notified automakers of its draft decision to move forward with firm tariffs on electric vehicles shipped from the country.

• Lowe’s Co. has cut its full-year guidance as a frozen housing market puts consumers on the sidelines for major purchases and renovations, including do-it-yourself projects.

• Boeing Co. It has suspended flight tests of its 777X jetliner while the hulking General Electric Co. is working with the plane’s wings. A four-aircraft fleet is being inspected for cracks in a critical structural component connecting the engines.

• Alaska Air Group Inc. and Hawaiian Holdings Inc. One step closer after the US Department of Justice decided to challenge the decision to combine $1.9 billion.

• Edgar Bronfman Jr. has formally submitted a $4.3 billion bid to take control of Paramount Global and cancel an existing offer from Skydance Media, according to a person familiar with the plan.

The story continues

Highlights of this week:

• US Fed minutes, BLS preliminary annual wages revision, Wednesday

• Eurozone HCOB PMI, Consumer Confidence, Thursday

• The ECB will publish an account of the July rate decision on Thursday

• US Initial Jobless Claims, Existing Home Sales, S&P Global PMI, Thursday

• Japan CBI, Friday

• Bank of Japan Governor Kazuo Ueda on Friday to participate in a special session of Japan’s parliament to discuss a July 31 interest rate hike.

• US new home sales, Friday

• Fed Chairman Jerome Powell speaks at the Jackson Hole Symposium in Wyoming on Friday

Some key movements in the markets:

Shares

• S&P 500 futures were unchanged at 8:52 a.m. New York time

• Nasdaq 100 futures were little changed

• Futures for the Dow Jones industrial average fell 0.1%

• The Stoxx Europe 600 fell 0.3%

• The MSCI World Index was little changed

Coins

• The Bloomberg Dollar Spot Index was little changed

• The euro was little changed at $1.1096

• The British pound was up 0.3% at $1.3025

• The Japanese yen rose 0.3% to 146.19 per dollar

Cryptocurrencies

• Bitcoin rose 2.7% to $60,724.23

• Ether rose 1.2% to $2,647.96

Bonds

• The yield on 10-year Treasuries fell three basis points to 3.84%.

• Germany’s 10-year yield fell two basis points to 2.22%

• Britain’s 10-year yield was little changed at 3.92%

materials

• West Texas Intermediate crude was down 0.1% at $74.28 a barrel.

• Spot gold rose 0.9% to $2,528.04 an ounce

This story was produced with the help of Bloomberg Automation.

Most read from Bloomberg Businessweek

©2024 Bloomberg LP