Latest news with #JohannMCherian
Mint
a day ago
- Business
- Mint
Dow briefly hits record high on UnitedHealth boost; Trump-Putin meeting in focus
Indexes: Dow up 0.3%, S&P 500 down 0.11%, Nasdaq off 0.27% UnitedHealth surges after Berkshire Hathaway investment Bank of America shares down on Berkshire share sale Applied Materials drops on weak China demand forecast Investors monitor Trump-Putin summit at Alaska By Johann M Cherian, Sanchayaita Roy and Saeed Azhar Aug 15 - The blue-chip Dow briefly hit a record high on Friday, as UnitedHealth's shares jumped after Berkshire Hathaway raised its stake in the health insurer, while investors assessed mixed data to determine the Federal Reserve's next monetary policy move. A meeting between U.S. President Donald Trump and Russian counterpart Vladimir Putin was also on the radar, with markets hoping it could pave the way for a resolution to the Ukraine conflict and determine the outlook for crude prices. The meeting is scheduled to take place at 1900 GMT. UnitedHealth Group gained almost 14% and was on track to log its biggest daily rise since 2008 after Warren Buffett's company revealed a new investment in the health insurer, while Michael Burry's Scion Asset Management also turned more bullish on the company. Rising costs in the broader healthcare sector and about a 40% slump in UnitedHealth's shares this year have left the Dow lagging its Wall Street peers on the road to record highs. The price-weighted index last scaled an all-time high on December 4. The healthcare sector gained 1.8% on Friday and is on track for its best weekly performance since October 2022. At 2:04 p.m. the Dow Jones Industrial Average rose 134.90 points, or 0.30%, to 45,046.70, the S&P 500 lost 7.43 points, or 0.11%, to 6,461.11 and the Nasdaq Composite lost 57.72 points, or 0.27%, to 21,652.95. More broadly, Wall Street's main stock indexes are on track for their second week of gains, buoyed by expectations that the Fed could restart its monetary policy easing cycle with a 25-basis-point interest rate cut in September. The central bank last lowered borrowing costs in December and said U.S. tariffs could add to price pressures. However, recent labor market weakness and signs that tariff-induced inflation was yet to reflect in headline consumer prices have made investors confident of a potential dovish move next month. "The question is, has the tariff gotten into the price of goods yet? And it appears that there hasn't," said Joe Saluzzi, co-head of equity trading at Themis Trading. Saluzzi also said while markets have largely priced in a September rate cut, investors might be overlooking risks, with low volatility and rich valuations pointing to a sense of complacency. In a mixed day for economic data, a report showed retail sales in July rose as expected, but consumer confidence and factory production numbers indicated tariffs were taking a toll on other pockets of the economy. Chicago Fed President Austan Goolsbee was also cautionary in his remarks. Trump has said he will unveil tariffs on steel and semiconductors next week. Among other stocks that were on the move, Applied Materials tumbled 14% after the chip equipment maker issued weak fourth-quarter forecasts. Shares of Bank of America dropped 1.4% after Berkshire Hathaway reduced its stake in the second-biggest U.S. lender by 4.2% to 605.3 million shares. It still owns about an 8% stake in BofA. Intel surged 5.7% after a report said the Trump administration was in talks for the U.S. government to potentially take a stake in the chipmaker. Declining issues outnumbered advancers by a 1.22-to-1 ratio on the NYSE. On the Nasdaq, declining issues outnumbered advancers by a 1.29-to-1 ratio. The S&P 500 posted 10 new 52-week highs and no new lows, while the Nasdaq Composite recorded 77 new highs and 72 new lows. This article was generated from an automated news agency feed without modifications to text.
Yahoo
3 days ago
- Business
- Yahoo
S&P 500, Nasdaq hover near record highs on September rate cut hopes
By Johann M Cherian and Sanchayaita Roy (Reuters) - The benchmark S&P 500 and the Nasdaq hovered near record highs on Wednesday as investors were increasingly confident that the Federal Reserve could restart its monetary policy easing cycle next month. Signs that U.S. tariffs on imports have not fully filtered into headline consumer prices came as a relief for investors this week as they scour for insights on the impact trade uncertainty has had on the economy. Despite data showing underlying price pressures were on the rise, markets also factored in recent weakness in the job market and a shake-up at the Federal Reserve as they leaned in favor of a potential dovish move by the central bank in September. Traders are now fully pricing in a 25 basis points interest rate cut, according to the CME's FedWatch Tool, up from 89.2% last week. The central bank last lowered borrowing costs in December. Treasury Secretary Scott Bessent also said he thought an aggressive half-point cut was possible given recent weak employment numbers. Stagflation "was the first word that came to my mind when I saw this CPI report yesterday," said Mark Hackett, chief market strategist at Nationwide, referring to Tuesday's data coming on the heels of a number of other reports pointing to a cooling economy. "The slowdown that we're seeing is probably fairly temporary, at least at this point. So inflation is something that we're absolutely worried about because we saw that uptick." At 12:18 p.m. ET, the Dow Jones Industrial Average rose 363.26 points, or 0.82%, to 44,821.52, the S&P 500 gained 9.34 points, or 0.15%, to 6,455.15 and the Nasdaq Composite advanced 15.77 points, or 0.07%, to 21,697.97. The blue-chip Dow was within 1% away from an all-time high and the Russell 2000 index, which tracks rate-sensitive small-cap companies, added 0.1.3% to hit a six-month high. Investors were also taking notice of other sectors following the recent tech-led rally in U.S. stocks that have pushed valuations of the S&P 500 above long-term averages. Healthcare stocks, which have been beaten down for much of the year, led gains among the 11 S&P 500 sectors with a 1.4% rise, while the tech-heavy Nasdaq 100 index was marginally lower. Later in the day, investors will scrutinize remarks of a number of policymakers, especially Chicago Fed President Austan Goolsbee. CoreWeave, which is backed by Nvidia, slumped 17.6% after the AI data center operator reported a bigger-than-expected quarterly net loss. Eyes are also on developments surrounding the China revenue-sharing deal the U.S. government signed with top chipmakers, which the White House said could be expanded to others in the sector. Paramount Skydance jumped 30%. The company won exclusive broadcasting rights to the Ultimate Fighting Championship for seven years earlier this week. In geopolitics, traders also were keen on a meeting between Trump and Russia's Vladimir Putin on the Ukraine conflict scheduled on Friday. Advancing issues outnumbered decliners by a 2.96-to-1 ratio on the NYSE and by a 2.28-to-1 ratio on the Nasdaq. The S&P 500 posted 37 new 52-week highs and two new lows, while the Nasdaq Composite recorded 131 new highs and 49 new lows. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-07-2025
- Business
- Yahoo
Sterling slips as weak growth data fuels rate cut expectations
By Johann M Cherian (Reuters) -Sterling slipped on Friday and was trading close to a more than two-week low after data showed the UK economy contracted for the second month, boosting expectations that the Bank of England could lower borrowing costs next month. Gross domestic product shrank by 0.1% after a 0.3% drop in April, the Office for National Statistics said, primarily dragged by weakness in industrial and construction output. "Though it would be wrong to conclude from the GDP data alone that the economy is coming under greater pressure, there are genuine questions emanating from the jobs market and whether it is beginning to fall apart more quickly," said James Smith, an economist at ING. "For the (BoE), it would likely force a rethink on the pace of rate cuts. Until now, officials have appeared highly reluctant to move beyond their recent, gradual once-per-quarter cutting pace." The pound weakened 0.26% to $1.354, while against the euro it slipped 0.2% to 86.35 pence. Yields on short-term gilts, often a reflection of interest rate expectations, were steady after easing about two basis points earlier in the day. Traders are now pricing in a 78.3% chance the BoE could deliver a 25-basis-point interest rate cut in August, versus the 64% probability they were pricing in two weeks ago, data compiled by LSEG showed. Friday's data adds to worries for finance minister Rachel Reeves, with economists saying it looks likely she will need to raise taxes again in the upcoming Autumn budget as the government strives to balance its public accounts. UK markets took a beating last week after the Labour government was forced to pass a highly contested welfare bill that did little to make good on the spending cuts initially hoped for and heightened the uncertainty regarding the sustainability of government finances. Globally, investors were rattled by U.S. President Donald Trump's latest tariff escalation as he said he would impose a 35% rate on Canadian imports next month, while other trading partners are likely to face blanket levies of 15% or 20%. The pound firmed 0.5% against the Canadian dollar and last fetched C$1.855. Analysts have said that Britain's deal with the U.S. has made it less exposed to uncertainty on the trade front, which was also reflected in the pound's 8% rise against the U.S. dollar so far this year.
Daily Maverick
17-06-2025
- Business
- Daily Maverick
Stocks slip, oil jumps as Trump calls for Tehran evacuation
Geopolitical tensions keep markets on edge as Trump urges Tehran evacuation Gold prices edge higher, crude prices climb as much as 1% Markets await BOJ decision, keen on bond-tapering plans By Johann M Cherian June 17 (Reuters) – US stock futures slipped and oil prices rose on Tuesday, as investors were rattled by US President Donald Trump's call for everyone to evacuate Tehran with the fifth-day of Israel-Iran fighting sowing fears of a broader regional conflict. Markets were on edge after a separate report said that Trump had asked for the national security council to be prepared in the situation room as he cut short his visit to the Group of Seven summit in Canada. Trump had earlier urged everyone to immediately evacuate Tehran, and reiterated that Iran should have signed a nuclear deal with the United States. The latest developments sparked a wave of risk-off moves in early Asian trading. S&P 500 futures fell 0.46%, European futures slumped 0.69%, while crude prices briefly jumped more than 2%. 'Suspicion is that we're about to see the US begin some sort of military action in Iran and we're now seeing some risk aversion because it brings another element of uncertainty into the market,' said Tony Sycamore, a market analyst at IG. Wall Street had closed higher on Monday after sources told Reuters that Iran was seeking a Trump-mediated immediate ceasefire with Israel, which also cooled a rally in crude prices. The Iran-Israel air war – the biggest battle ever between the two longtime enemies – escalated on Monday with Israel targeting Iran's state broadcaster and uranium enrichment facilities. The heightened uncertainty and fluid Middle East situation bolstered investor moves towards traditional safe-haven assets such as gold which rose 0.5%, while a rise in US Treasuries pushed yields lower across the curve. The yield on the benchmark 10-year note was down about 2 basis points at 4.43%. The dollar firmed against the euro, yen and sterling as it reprised its role as a safe asset even as it held to broadly tighter ranges. MSCI's broadest index of Asia-Pacific shares outside Japan was a tad higher, while futures tracking Hong Kong's Hang Seng index were also marginally higher. Outside of geopolitics, interest rate decisions by a host of central banks will be the prime focus for investors this week with the Bank of Japan's verdict expected later in the day. At the end of its two-day policy meeting, the BOJ is widely expected to maintain short-term interest rates at 0.5%, but markets will be keen on the institution's outlook on quantitative tightening. Japan's Nikkei edged up 0.5%, while the yen was slightly weaker at 144.96 per dollar. Investors are expecting the BOJ to consider slowing reductions in its bond purchases next year, as the central bank focuses on avoiding big market disruptions and tries to wean the economy off a decade-long, massive stimulus. It would be the first decision since the recent bond auctions had shown eroding appetite for freshly issued longer-dated debt and drove the country's bond yields to record highs. On Tuesday, yields on 30-year and 40-year bonds were broadly steady. In a week filled with central bank meetings across the globe, investors will be looking to comments from officials as they navigate Trump's erratic tariff policies and their impact on the global economy. The Federal Reserve is expected to hold rates steady on Wednesday but the focus yet again will be on the path Fed Chair Jerome Powell charts out for future rate cuts. Traders are pricing in two cuts by the end of the year. 'To be a central banker right now is one challenging job and on top of the tariff situation, the trade policy and the inking of deals before deadlines you have this uncertainty from the Middle East,' said IG's Sycamore. 'Macro backdrops don't get any more tricky than what we're seeing at this point in time.' In commodities, the risks of prolonged unrest in the Middle East and disruption to oil supply sent prices higher. Brent crude futures contract was last up 0.34% at $73.47 a barrel. West Texas Intermediate crude was last up 0.43% at $72.09. Gold prices were fetching $3,393.05 per ounce, up 0.3% on the day.
Yahoo
12-06-2025
- Business
- Yahoo
Morning Bid: No relief from US-China trade truce
A look at the day ahead in European and global markets from Johann M Cherian European investors are set to wake up to a souring mood as rapidly rising tensions in the Middle East and yet another tariff salvo from U.S. President Donald Trump triggered a new wave of dollar-selling and risk-off moves. The much-hyped U.S.-China talks culminated in a fragile truce that may have put a lid on simmering trade tensions between the world's top two economies for now but the lack of details has left investors unnerved. For starters, China President Xi Jinping is yet to give his approval on the 'deal'. And details on how the new tariffs will be implemented are yet to be ironed out and U.S. export restrictions on high-end artificial intelligence chips are still in place. And with the July 8 deadline on worldwide tariffs fast approaching, Trump is back to his unilateral style of policymaking as he said he would send out letters in one to two weeks outlining terms of trade to dozens of other countries, which they could embrace or reject. Markets will be hoping for another TACO moment. While backward looking inflation reports are yet to reflect the price pressures, companies are starting to sound the alarm. Zara-owner Inditex was the latest to issue a disappointing quarterly report and flag headwinds from trade uncertainty. And as if investors did not have enough to juggle with already, geopolitical tensions in the Middle East are flaring, adding to the risks of rising crude prices fuelling inflation pressures. Supply concerns out of the oil-rich region pushed Brent and West Texas Intermediate futures to two-month highs of nearly $70 a barrel each. In all of this, as my colleague Jamie McGeever points out, valuations in equities and stocks are beginning to appear stretched, compounding the risks to investors in the event of a market selloff. European futures were down 0.7%, while futures in the U.S. are pointing to a lower open on Thursday, but the benchmark indexes in the regions are just about 2% away from their respective record highs. Further, investors continue to question the dollar's safe-haven status. On Thursday, the euro hit a seven-week high and is up 11% this year, poised for its biggest yearly advance since 2017. The central bank bonanza next week could perhaps throw more light on the global economy's outlook. The U.S. Federal Reserve along with the Bank of Japan and the Bank of England are due to announce their policy decisions. Meanwhile, investors will look for a string of UK economic data including reports on gross domestic product and manufacturing output later in the day. Both are expected to reflect a decline in activity on a monthly basis, reigned in by the BoE's cautious approach to monetary policy easing. Key developments that could provide more direction to markets on Thursday: - In the UK: GDP, industrial output, manufacturing output and trade data - In the U.S.: Producer inflation data, initial weekly jobless claims report and an auction of 30-year bonds worth $22 billion - Policymakers expected to speak include ECB's Jose Luis Escriva, Reserve Bank of Australia's David Jacobs - UniCredit CEO sees slim hopes of BPM deal, says Commerzbank too costly - Oracle raises annual forecast on robust cloud services demand - Warner Bros' credit rating downgraded to junk by Fitch on split-up (By Johann M Cherian; Editing by Muralikumar Anantharaman) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
