U S. Stock Market Headlines Breaking Stock Market News

Gold often is viewed as a hedge against rising prices and a classic fear trade. Even though higher oil prices are a symptom of inflation, they also could lead to a pullback in consumer spending. With that in mind, the Fed may need to err on the side of caution and not raise rates too sharply. The Dow plummeted nearly 900 points in late morning trading…and all 30 Dow components were in the red. Nine Dow stocks, including tech giants Intel (INTC), Microsoft (MSFT), Apple (AAPL) and Salesforce (CRM), were down more than 4% each. The tech sector was hit particularly hard Tuesday, as investors ratcheted up their bets for a historically large interest rate hike by the Federal Reserve next week.

  • Tuesday’s losses wiped out a week’s worth of gains on Wall Street.
  • But active customers — defined as people who’ve made a purchase within the past year — have completely plateaued, as the table below shows.
  • Stocks remained broadly lower in mid-afternoon trading Thursday due to worries about Russia’s invasion of Ukraine.
  • Meanwhile, bond yields continue to rise, with that of the 10-year Treasury back above 4.6%.

We were mesmerized over the weekend by videos from U2’s concert at the Las Vegas Sphere, which is owned Sphere Entertainment Co (SPHR). Investors had already been nervous about inflation, which has been the highest in decades in the United States and Europe after the pandemic shut factories and left supply chains snarled. The bipartisan push by lawmakers to cut off oil imports adds to pressure on President Biden to shut the spigot. On Sunday, Secretary of State Antony J. Blinken added to expectations during his recent tour of countries near Ukraine that some sort of embargo was in the works. But Citi acknowledged in the annual report how uncertain conditions are regarding Russia. None of the companies hit by regulatory halts have been outright delisted.

Steel (X) to overweight from equal weight, while raising its price target on the stock to $40 a share, up from $25. Steel a “top pick” on expected value creation from the company’s investments and strategic review process. But the war’s financial fallout is hitting Europe the hardest.

However, the U.S. unemployment rate of 3.8% was up significantly from July and is currently at its highest level since February 2022. Spending per customer can only be expected to do the heavy lifting for so long before also plateauing. Chewy would benefit immensely from growth in active customers, considering it has the logistics network to support it.

Stocks stage furious comeback after West holds off on most potent sanctions against Russia

While the looming shutdown is contributing to the recent market dip, it’s not the only driver. Birol said the IEA discussed the possibility of holding a minister-level meeting and agreed to closely monitor developments and to “continue to act in solidarity to ensure global energy security.” The Nasdaq and S&P 500 were both surging too, gaining 1.3% and 1.9% respectively. Banks, basic materials and healthcare companies led the rally.

Alexey Mordashov, chairman of steelmaker Severstal, lost $4.2 billion on Thursday but is his net worth is now $23 billion. And the country’s wealthiest individual, Norilsk Nickel president Vladimir Potanin, lost $3 billion. The Dow’s remarkable rebound in the past day and a half briefly pushed smooth moving average the 30 industrials back into positive territory for the week. The tooth-alignment company is searching for a buyer in bankruptcy to continue as a going concern. Stock declines have accelerated, with the Dow down 850 points. Tuesday’s losses wiped out a week’s worth of gains on Wall Street.

  • High interest rates have a negative impact on discounted cash flow valuations, which can hurt high-growth stocks.
  • In addition to energy, Russia is a big producer of staples like wheat, aluminum and palladium, which is used in cars and phones — and prices of those commodities have also been soaring.
  • The latest version, with a range of up to 260 miles, starts at $43,990, according to Tesla’s website — $3,750 cheaper than its previous base model.
  • The retailer, which didn’t explicitly mention Nike in its earnings report, said Friday that no single supplier is expected to account for more than about 60% of its total purchases for fiscal 2022.

Investors concerned about the potential for a U.S. recession can also take a more defensive approach to the market and increase their financial flexibility in 2023 by dialing back exposure to stocks and increasing their cash holdings. Value stocks have historically outperformed growth stocks when interest rates are high. High interest rates have a negative impact on discounted cash flow valuations, which can hurt high-growth stocks. Since the beginning of 2022, the Vanguard Value ETF (VTV) has generated a total return loss of 1.2%, while the Vanguard Growth ETF (VUG) has generated a total return loss of 14.2%. The U.S. federal government shuts down when Congress can’t pass legislation to fund the government before its fiscal year begins on October 1.

With over $10.8 billion in trailing 12-month net sales and 20.4 million active customers, Chewy has scaled its business to the point where profits are possible. The chart below shows that the company’s earnings per share (EPS) are now positive, thanks in part to its higher revenue. Piper Sandler upgrades enterprise software firms Zscaler (ZS) and Datadog (DDOG) to overweight from neutral. The firm raises its price target on Zscaler to $190 a share, up from $160, and lifts its price target on Datadog to $115 a share, from $88. Goldman removes Club name Salesforce (CRM) and Johnson Controls International (JCI) from the list, while maintaining buy ratings on both stocks. An earlier version of this article and a news alert that accompanied it misstated the last time the S&P 500 fell more than it did on Monday.

TikTok parent ByteDance turns $6 billion operating profit in 2023’s first quarter: WSJ

Bloomberg reported that some of the country’s wealthiest individuals collectively lost $39 billion as a result of the market upheaval in the wake of Russia’s invasion of Ukraine. US stocks rallied for a second straight day after Russia reportedly agreed to hold talks with Ukraine. Better-than-expected envelope indicator jumps in personal spending and durable goods orders also helped lift market sentiment. ByteDance, the privately held parent of China-based social-media video-sharing app TikTok, managed a $6 billion profit in the first quarter of 2023, the Wall Street Journal reported late Monday.

‘Eventually something will break’: JPMorgan strategist warns rising bond yields could unleash a ‘financial accident’

And all of that is on top of Berkshire’s gives right to buy nearly 84 million more Occidental shares — part of a 2019 deal in which Berkshire invested $10 billion in Occidental to help the company buy rival Anadarko Petroleum. With a half hour left in the trading day, the Dow is down nearly 700 points, near the lows of the day. The last time the Nasdaq had this bad of a downturn was in the 2008 Global Financial Crisis. The Nasdaq plunged nearly 12% in September 2008, another 18% in October of that year and 11% further in November 2008. Shares of Yandex (YNDX) got cut by more than half Thursday, nosediving 53% in the wake of Russia’s invasion of Ukraine.

Another Rate Hike Coming?

While some were resolved in less than a week, the most recent in late 2018 and early 2019 lasted over one month. The national average price for regular gasoline climbed to $3.57 a gallon on Friday, according to AAA. That’s up by about 3 cents in just a day and 23 cents in a month. With a Congressional deal nowhere in sight, chances are rising that the federal government will run out of money to continue operating past Sept. 30, making a government shutdown imminent. The currency bounced back in the third quarter, threatening global central bankers’ tricky task of bringing down inflation while protecting fragile economic growth.

The Dow has tumbled 900 points as Wall Street waves the white flag on inflation. Jeff Corey, senior vice president at Claro Advisors, says investors should hope for vegan companies to invest in a soft landing for the economy but prepare for a hard one. U.S. real personal spending was up 0.1% in August, a significant deceleration from 0.6% growth in July.

Aside from the shock and uncertainty of the war, the conflict has increased concerns about prolonged inflation worldwide. The Goldman Sachs call specifically cited new sanctions levied by the West on Russia in recent days aimed at punishing Moscow for the war. Citi noted in the filing that it is “pursuing the exit” of its global consumer banking business in Russia but it still expects to have a presence in Russia through its institutional clients group for businesses. But the banking giant still has a significant presence there…and that is hurting the company and its investors. The Russell 2000, an index of smaller American companies, was also up Monday. The Russell 2000 surged more than 2% Thursday and Friday as well.

Analysts expected volatility in financial markets in the opening days of October after it was assumed Republicans and Democrats would fail to reach a deal to avoid a U.S. government shutdown prior to the October 1 deadline. DA Davidson upgrades Clorox (CLX) to buy from neutral, with an unchanged price target of $152 a share. With the stock down 18% since the company disclosed a cyberattack in mid-August, the firm believes too heavy a financial impact is discounted at current levels. The energy sector, which is up about 35 percent since the start of the year, is the only part of the S&P 500 that has not fallen this year.

US equity funds see biggest weekly outflow in three months

Monster Beverage (MNST) was another big S&P 500 winner Friday, with its stock up more than 6% after reporting revenue that beat analysts’ estimates. Monster has fallen about 10% this year, but its shares have gotten a boost lately from takeover chatter. Shares of Etsy (ETSY), the popular e-commerce site for arts and crafts, surged 11% Friday thanks to strong earnings and sales that topped Wall Street’s forecasts. Democrats in Congress are calling for the White House to take new steps to blunt the impact of soaring gasoline prices in the wake of Russia’s attack on Ukraine. Stocks soared Friday, building on Thursday’s huge late-day rally that lifted stocks into positive territory that day. Constellation Brands and Levi Strauss will report earnings next week.

Mr. Duggan is also the author of the book “Beating Wall Street With Common Sense” and has contributed news and analysis to U.S. News & World Report, Seeking Alpha, InvestorPlace.com and The Motley Fool. Mr. Duggan is a graduate of the Massachusetts Institute of Technology and resides in Biloxi, Mississippi. Going back to 1976, the average U.S. government shutdown has lasted just 9.5 days, and the S&P 500 has gained an average of 0.3% during the shutdowns. Congress reached a last-minute deal on September 30 to keep the government funded for an additional 45 days.

Bitcoin prices surged more than 10% Monday to above $41,500, their highest level in nearly two weeks. Croft said the food price inflation risk stemming from this conflict “appears acute” because Russia and Ukraine account for a combined 25% of global wheat exports and Ukraine alone for 13% of corn exports. RBC added that Russia is the largest producer of ammonium nitrate, a key component in fertilizer. Want to see how much sanctions from the United States and Europe against Moscow could hurt Russian businesses, stocks and its economy? Look no further than Yandex, the search engine often referred to as Russia’s Google.