S&P 500, Nasdaq move higher after mixed earnings
In early trading on Thursday, the S&P 500 gained 10.62 points, or 0.17 per cent, to 6,369.85 and the Nasdaq Composite gained 66.26 points, or 0.33 per cent, to 21,086.27.
Alphabet rose 1.9 per cent after the Google parent raised its 2025 capital spending forecast by $US10 billion ($A15 billion) to $US85 billion ($A129 billion), shrugging off trade jitters, while electric vehicle maker Tesla tumbled 7.6 per cent as CEO Elon Musk warned of "a few rough quarters" due to cuts in EV incentives.
Losses in UnitedHealth, IBM and Honeywell weighed on the blue-chip Dow, which fell 0.6 per cent -though it remained close to its December 4 record high.
UnitedHealth lost 2.3 per cent. The insurer revealed it's cooperating with a Department of Justice probe into its Medicare practices, following reports of both criminal and civil investigations.
IBM sank 9.5 per cent as its second-quarter results fell flat with investors, hampered by disappointing sales in its core software division.
Honeywell, meanwhile, dipped 5.2 per cent despite topping Wall Street's expectations and raising its annual outlook.
On the trade front, an EU spokesperson hinted that a deal was "within reach"—one that could slap a broad 15 per cent tariff on imports across the 27-member bloc, according to diplomats.
Meanwhile, fresh signs of progress emerged after President Donald Trump struck an agreement with Japan, slicing tariffs on Japanese goods to 15 per cent. China and South Korea are also scrambling to clinch their own deals and sidestep Trump's hefty duties.
Yet, some of Wall Street's heavyweights were starting to feel the sting of Trump's sweeping tariffs, injecting a dose of caution into the market mood.
American Airlines fell 9.2 per cent after forecasting a bigger-than-expected third-quarter loss, hurt by sluggish domestic travel demand.
Shares of ServiceNow rose 5.5 per cent after the software firm raised its annual subscription revenue forecast.
Markets were also monitoring developments after the White House surprised investors that Trump - fresh from stepping up his criticism of Federal Reserve Chair Jerome Powell - would pay a visit to the US central bank's headquarters later in the day.
With the Fed widely expected to hold rates steady at next week's meeting, traders are now pricing in a 62 per cent chance of a September rate cut, according to CME's FedWatch tool.
The latest Labour Department report showed weekly jobless claims fell to 217,000—well below estimates—signalling continued resilience in the US job market.
"It (data) is a good guide for the health of the economy and this week's jobless claims show that the economy is ticking along just nicely," said Neil Birrell, chief investment officer at Premier Miton Investors.
US business activity gained momentum in July, but companies hiked prices on goods and services—a move that's fuelling economists' predictions of faster inflation in the months ahead, largely driven by rising import tariffs
Declining issues outnumbered advancers by a 2.05-to-1 ratio on the NYSE and by a 1.63-to-1 ratio on the Nasdaq.
The S&P 500 posted 21 new 52-week highs and two new lows, while the Nasdaq Composite recorded 40 new highs and 13 new lows.
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The Australian
38 minutes ago
- The Australian
Trump says US to impose 15% tariff on South Korean goods
President Donald Trump said Wednesday the United States will impose a 15 percent tariff on imports from South Korea, as he touted a "full and complete trade deal" between the two countries. "South Korea will give to the United States $350 Billion Dollars for Investments," Trump said in a post on his Truth Social platform, adding that the country would buy $100 billion in liquefied natural gas or other energy products. The 15 percent rate is below a 25 percent tariff that Trump had threatened earlier, and was equivalent to deals with Japan and the European Union. Trump added that an additional unspecified "large sum of money" will be invested by Seoul. "This sum will be announced within the next two weeks when the President of South Korea, Lee Jae Myung, comes to the White House for a Bilateral Meeting," Trump said, offering congratulations to his South Korean counterpart for his "electoral success." South Korea's Finance Minister Koo Yun-cheol said Seoul's commitment to help the United States revive its shipbuilding industry was instrumental in reaching the deal. "I believe MASGA made the greatest contribution to reaching today's agreement," Koo said at a news conference in Washington, referring to the "Make American Shipbuilding Great Again" proposal. "Our world-class shipbuilding companies, equipped with the highest level of ship design and construction capabilities, are expected to help revive the US shipbuilding industry," he said. Shares in South Korean shipbuilder Hanwha Ocean, which owns a shipyard in Philadelphia, soared more than 15 percent Thursday. The leaders' White House meeting will be their first since Lee assumed the presidency in June. In a statement on Facebook, Lee called the deal "the first major trade challenge" since his administration took power, adding: "We have overcome a major hurdle." "Through this deal, the government has eliminated uncertainty surrounding export conditions and ensured that US tariffs on our exports are either lower than or equal to those imposed on our major trade competitors." - Mixed reaction - Lee was elected in a snap vote last month following the impeachment of predecessor Yoon Suk Yeol over his disastrous martial law declaration in December. The deal marks an early victory for Lee's tenure as head of the export-reliant economy, Asia's fourth biggest. "This agreement represents the convergence of US interests in revitalizing its manufacturing sector and our determination to strengthen Korean companies' competitiveness in the American market," Lee's statement continued. But there were mixed reactions in South Korea. Its six major business associations, including the Korea Chamber of Commerce, said in a joint statement: "We view this agreement as a critical milestone that will not only ease trade-related uncertainties but also pave the way for a significant strengthening of economic cooperation between the two countries. "With much of the external uncertainty now resolved, the Korean business community will redouble efforts to boost domestic investment and job creation." But a handful of civic groups, including farmers and labour organisations, protested at the US Embassy in central Seoul, opposing "Trump's madman strategy." Demonstrators held signs reading "No Trump! No King!" and pointed out that there may be additional negotiations when Lee meets Trump. "Trump's actions amount to excessive interference in our domestic affairs," said Park Sung-hoon, head of the Korean Apple Growers Association. Since returning to the White House in January, Trump has imposed a sweeping 10 percent tariff on trading partners -- with extra rates for dozens of economies set for August 1 -- alongside steeper tolls on steel, aluminium and autos. News of the deal with South Korea came as Trump on Wednesday imposed 25 percent tariffs on Indian goods and 50 percent on those from Brazil. bur-kjk-hs/dan
The Advertiser
an hour ago
- The Advertiser
Wall St jumps on Microsoft's blockbuster earnings
The S&P 500 and Nasdaq have climbed to new record highs as Microsoft's blockbuster earnings propelled the tech giant and fueled investor confidence in Big Tech's hefty investments in artificial intelligence. Microsoft became the second publicly-traded company after Nvidia to surpass $US4 trillion ($A6.2 trillion) in market valuation, following a blockbuster earnings report. Meta Platforms also climbed 12.1 per cent to an all-time high in early trading, after the social media giant forecast third-quarter revenue well above estimates, thanks to AI boosting its core advertising business. Nvidia gained more than one per cent. The S&P technology index and the communication services index both hit record highs, up 1.2 per cent and over three per cent, respectively. In early trading on Thursday, the Dow Jones Industrial Average rose 88.73 points, or 0.20 per cent, to 44,550.01, the S&P 500 gained 45.18 points, or 0.71 per cent, to 6,408.08 and the Nasdaq Composite gained 245.09 points, or 1.16 per cent, to 21,374.76. A Commerce Department report showed US inflation increased in June as tariffs on imports started raising the cost of some goods, supporting economists' expectations that price pressures would pick up in the second half of the year. "Thursday's PCE was stronger than expected and throws cold water on the idea of (an autumn) rate-cut, as it's clear that lower interest rates are not justified at this time," said Clark Bellin, president and chief investment officer, Bellwether Wealth. "Inflation remains sticky and justifies the Fed's decision to keep interest rates unchanged at Wednesday's meeting." Separately, weekly jobless claims increased marginally last week, suggesting the labour market remained stable. Attention now turns to Friday's non-farm payrolls report and a looming tariff deadline, with President Donald Trump refusing to extend trade talks for lagging partners. Easing global trade war fears, signs of US economic resilience, and renewed AI optimism have set Wall Street on course for monthly gains. The S&P 500 and blue-chip Dow are set for a third straight monthly gain - their longest winning streak in nearly a year - while the Nasdaq was on track for its best monthly run since March 2024. On Wednesday, Federal Reserve Chair Jerome Powell diluted investor expectations for an interest rate cut in September after the central bank kept rates unchanged. Traders now see a 58.8 per cent chance the Fed will stay pat in September as well, according to CME's FedWatch tool. Powell said it was too early to predict a September rate cut, and that current policy was not restricting the economy. The statement came after stronger-than-expected GDP data for the second quarter. The "hold" verdict prompted another jibe on Powell by Trump, while Treasury Secretary Scott Bessent said he expected an announcement on Powell's successor by year-end. Trump's deal with South Korea on Wednesday cut the country's import tariff to 15 per cent from the previously threatened 25 per cent. Among other stocks, Applied Digital soared 32.7 per cent after the data centre operator surpassed estimates for quarterly revenue. Declining issues outnumbered advancers by a 1.17-to-1 ratio on the NYSE, and by a 1.16-to-1 ratio on the Nasdaq. The S&P 500 and Nasdaq have climbed to new record highs as Microsoft's blockbuster earnings propelled the tech giant and fueled investor confidence in Big Tech's hefty investments in artificial intelligence. Microsoft became the second publicly-traded company after Nvidia to surpass $US4 trillion ($A6.2 trillion) in market valuation, following a blockbuster earnings report. Meta Platforms also climbed 12.1 per cent to an all-time high in early trading, after the social media giant forecast third-quarter revenue well above estimates, thanks to AI boosting its core advertising business. Nvidia gained more than one per cent. The S&P technology index and the communication services index both hit record highs, up 1.2 per cent and over three per cent, respectively. In early trading on Thursday, the Dow Jones Industrial Average rose 88.73 points, or 0.20 per cent, to 44,550.01, the S&P 500 gained 45.18 points, or 0.71 per cent, to 6,408.08 and the Nasdaq Composite gained 245.09 points, or 1.16 per cent, to 21,374.76. A Commerce Department report showed US inflation increased in June as tariffs on imports started raising the cost of some goods, supporting economists' expectations that price pressures would pick up in the second half of the year. "Thursday's PCE was stronger than expected and throws cold water on the idea of (an autumn) rate-cut, as it's clear that lower interest rates are not justified at this time," said Clark Bellin, president and chief investment officer, Bellwether Wealth. "Inflation remains sticky and justifies the Fed's decision to keep interest rates unchanged at Wednesday's meeting." Separately, weekly jobless claims increased marginally last week, suggesting the labour market remained stable. Attention now turns to Friday's non-farm payrolls report and a looming tariff deadline, with President Donald Trump refusing to extend trade talks for lagging partners. Easing global trade war fears, signs of US economic resilience, and renewed AI optimism have set Wall Street on course for monthly gains. The S&P 500 and blue-chip Dow are set for a third straight monthly gain - their longest winning streak in nearly a year - while the Nasdaq was on track for its best monthly run since March 2024. On Wednesday, Federal Reserve Chair Jerome Powell diluted investor expectations for an interest rate cut in September after the central bank kept rates unchanged. Traders now see a 58.8 per cent chance the Fed will stay pat in September as well, according to CME's FedWatch tool. Powell said it was too early to predict a September rate cut, and that current policy was not restricting the economy. The statement came after stronger-than-expected GDP data for the second quarter. The "hold" verdict prompted another jibe on Powell by Trump, while Treasury Secretary Scott Bessent said he expected an announcement on Powell's successor by year-end. Trump's deal with South Korea on Wednesday cut the country's import tariff to 15 per cent from the previously threatened 25 per cent. Among other stocks, Applied Digital soared 32.7 per cent after the data centre operator surpassed estimates for quarterly revenue. Declining issues outnumbered advancers by a 1.17-to-1 ratio on the NYSE, and by a 1.16-to-1 ratio on the Nasdaq. The S&P 500 and Nasdaq have climbed to new record highs as Microsoft's blockbuster earnings propelled the tech giant and fueled investor confidence in Big Tech's hefty investments in artificial intelligence. Microsoft became the second publicly-traded company after Nvidia to surpass $US4 trillion ($A6.2 trillion) in market valuation, following a blockbuster earnings report. Meta Platforms also climbed 12.1 per cent to an all-time high in early trading, after the social media giant forecast third-quarter revenue well above estimates, thanks to AI boosting its core advertising business. Nvidia gained more than one per cent. The S&P technology index and the communication services index both hit record highs, up 1.2 per cent and over three per cent, respectively. In early trading on Thursday, the Dow Jones Industrial Average rose 88.73 points, or 0.20 per cent, to 44,550.01, the S&P 500 gained 45.18 points, or 0.71 per cent, to 6,408.08 and the Nasdaq Composite gained 245.09 points, or 1.16 per cent, to 21,374.76. A Commerce Department report showed US inflation increased in June as tariffs on imports started raising the cost of some goods, supporting economists' expectations that price pressures would pick up in the second half of the year. "Thursday's PCE was stronger than expected and throws cold water on the idea of (an autumn) rate-cut, as it's clear that lower interest rates are not justified at this time," said Clark Bellin, president and chief investment officer, Bellwether Wealth. "Inflation remains sticky and justifies the Fed's decision to keep interest rates unchanged at Wednesday's meeting." Separately, weekly jobless claims increased marginally last week, suggesting the labour market remained stable. Attention now turns to Friday's non-farm payrolls report and a looming tariff deadline, with President Donald Trump refusing to extend trade talks for lagging partners. Easing global trade war fears, signs of US economic resilience, and renewed AI optimism have set Wall Street on course for monthly gains. The S&P 500 and blue-chip Dow are set for a third straight monthly gain - their longest winning streak in nearly a year - while the Nasdaq was on track for its best monthly run since March 2024. On Wednesday, Federal Reserve Chair Jerome Powell diluted investor expectations for an interest rate cut in September after the central bank kept rates unchanged. Traders now see a 58.8 per cent chance the Fed will stay pat in September as well, according to CME's FedWatch tool. Powell said it was too early to predict a September rate cut, and that current policy was not restricting the economy. The statement came after stronger-than-expected GDP data for the second quarter. The "hold" verdict prompted another jibe on Powell by Trump, while Treasury Secretary Scott Bessent said he expected an announcement on Powell's successor by year-end. Trump's deal with South Korea on Wednesday cut the country's import tariff to 15 per cent from the previously threatened 25 per cent. Among other stocks, Applied Digital soared 32.7 per cent after the data centre operator surpassed estimates for quarterly revenue. Declining issues outnumbered advancers by a 1.17-to-1 ratio on the NYSE, and by a 1.16-to-1 ratio on the Nasdaq. The S&P 500 and Nasdaq have climbed to new record highs as Microsoft's blockbuster earnings propelled the tech giant and fueled investor confidence in Big Tech's hefty investments in artificial intelligence. Microsoft became the second publicly-traded company after Nvidia to surpass $US4 trillion ($A6.2 trillion) in market valuation, following a blockbuster earnings report. Meta Platforms also climbed 12.1 per cent to an all-time high in early trading, after the social media giant forecast third-quarter revenue well above estimates, thanks to AI boosting its core advertising business. Nvidia gained more than one per cent. The S&P technology index and the communication services index both hit record highs, up 1.2 per cent and over three per cent, respectively. In early trading on Thursday, the Dow Jones Industrial Average rose 88.73 points, or 0.20 per cent, to 44,550.01, the S&P 500 gained 45.18 points, or 0.71 per cent, to 6,408.08 and the Nasdaq Composite gained 245.09 points, or 1.16 per cent, to 21,374.76. A Commerce Department report showed US inflation increased in June as tariffs on imports started raising the cost of some goods, supporting economists' expectations that price pressures would pick up in the second half of the year. "Thursday's PCE was stronger than expected and throws cold water on the idea of (an autumn) rate-cut, as it's clear that lower interest rates are not justified at this time," said Clark Bellin, president and chief investment officer, Bellwether Wealth. "Inflation remains sticky and justifies the Fed's decision to keep interest rates unchanged at Wednesday's meeting." Separately, weekly jobless claims increased marginally last week, suggesting the labour market remained stable. Attention now turns to Friday's non-farm payrolls report and a looming tariff deadline, with President Donald Trump refusing to extend trade talks for lagging partners. Easing global trade war fears, signs of US economic resilience, and renewed AI optimism have set Wall Street on course for monthly gains. The S&P 500 and blue-chip Dow are set for a third straight monthly gain - their longest winning streak in nearly a year - while the Nasdaq was on track for its best monthly run since March 2024. On Wednesday, Federal Reserve Chair Jerome Powell diluted investor expectations for an interest rate cut in September after the central bank kept rates unchanged. Traders now see a 58.8 per cent chance the Fed will stay pat in September as well, according to CME's FedWatch tool. Powell said it was too early to predict a September rate cut, and that current policy was not restricting the economy. The statement came after stronger-than-expected GDP data for the second quarter. The "hold" verdict prompted another jibe on Powell by Trump, while Treasury Secretary Scott Bessent said he expected an announcement on Powell's successor by year-end. Trump's deal with South Korea on Wednesday cut the country's import tariff to 15 per cent from the previously threatened 25 per cent. Among other stocks, Applied Digital soared 32.7 per cent after the data centre operator surpassed estimates for quarterly revenue. Declining issues outnumbered advancers by a 1.17-to-1 ratio on the NYSE, and by a 1.16-to-1 ratio on the Nasdaq.
Perth Now
an hour ago
- Perth Now
Wall St jumps on Microsoft's blockbuster earnings
The S&P 500 and Nasdaq have climbed to new record highs as Microsoft's blockbuster earnings propelled the tech giant and fueled investor confidence in Big Tech's hefty investments in artificial intelligence. Microsoft became the second publicly-traded company after Nvidia to surpass $US4 trillion ($A6.2 trillion) in market valuation, following a blockbuster earnings report. Meta Platforms also climbed 12.1 per cent to an all-time high in early trading, after the social media giant forecast third-quarter revenue well above estimates, thanks to AI boosting its core advertising business. Nvidia gained more than one per cent. The S&P technology index and the communication services index both hit record highs, up 1.2 per cent and over three per cent, respectively. In early trading on Thursday, the Dow Jones Industrial Average rose 88.73 points, or 0.20 per cent, to 44,550.01, the S&P 500 gained 45.18 points, or 0.71 per cent, to 6,408.08 and the Nasdaq Composite gained 245.09 points, or 1.16 per cent, to 21,374.76. A Commerce Department report showed US inflation increased in June as tariffs on imports started raising the cost of some goods, supporting economists' expectations that price pressures would pick up in the second half of the year. "Thursday's PCE was stronger than expected and throws cold water on the idea of (an autumn) rate-cut, as it's clear that lower interest rates are not justified at this time," said Clark Bellin, president and chief investment officer, Bellwether Wealth. "Inflation remains sticky and justifies the Fed's decision to keep interest rates unchanged at Wednesday's meeting." Separately, weekly jobless claims increased marginally last week, suggesting the labour market remained stable. Attention now turns to Friday's non-farm payrolls report and a looming tariff deadline, with President Donald Trump refusing to extend trade talks for lagging partners. Easing global trade war fears, signs of US economic resilience, and renewed AI optimism have set Wall Street on course for monthly gains. The S&P 500 and blue-chip Dow are set for a third straight monthly gain - their longest winning streak in nearly a year - while the Nasdaq was on track for its best monthly run since March 2024. On Wednesday, Federal Reserve Chair Jerome Powell diluted investor expectations for an interest rate cut in September after the central bank kept rates unchanged. Traders now see a 58.8 per cent chance the Fed will stay pat in September as well, according to CME's FedWatch tool. Powell said it was too early to predict a September rate cut, and that current policy was not restricting the economy. The statement came after stronger-than-expected GDP data for the second quarter. The "hold" verdict prompted another jibe on Powell by Trump, while Treasury Secretary Scott Bessent said he expected an announcement on Powell's successor by year-end. EU officials said European liquor could face 15 per cent tariffs from August 1 until a different agreement is reached, with talks set to continue in the autumn. Trump's deal with South Korea on Wednesday cut the country's import tariff to 15 per cent from the previously threatened 25 per cent. Among other stocks, Applied Digital soared 32.7 per cent after the data centre operator surpassed estimates for quarterly revenue. Declining issues outnumbered advancers by a 1.17-to-1 ratio on the NYSE, and by a 1.16-to-1 ratio on the Nasdaq.
