Latest news with #MaryDaly
Yahoo
18-07-2025
- Business
- Yahoo
Rate Cuts Ahead? Fed Voices Weigh In as Stocks Hit Record High
Federal Reserve Governor Christopher Waller says policymakers should cut interest rates now to support a labor market that is showing signs of weakness. Separately Federal Reserve Bank of San Francisco President Mary Daly Told Bloomberg she still thinks it's reasonable for policymakers to plan on two interest-rate cuts this year, emphasizing that the central bank should not wait too long before moving. So could the Fed cut rates soon? Bloomberg MLIV Executive Editor Mark Cudmore joins Caroline Hepker and Valerie Tytel on Bloomberg radio to discuss as a new S&P 500 high indicates that a record-extending global stock rally may have further to run with strong economic data easing concerns about the health of the US economy. 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
Bloomberg
18-07-2025
- Business
- Bloomberg
Rate Cuts Ahead? Fed Voices Weigh In as Stocks Hit Record High
Federal Reserve Governor Christopher Waller says policymakers should cut interest rates now to support a labor market that is showing signs of weakness. Separately Federal Reserve Bank of San Francisco President Mary Daly Told Bloomberg she still thinks it's reasonable for policymakers to plan on two interest-rate cuts this year, emphasizing that the central bank should not wait too long before moving. So could the Fed cut rates soon? Bloomberg MLIV Executive Editor Mark Cudmore joins Caroline Hepker and Valerie Tytel on Bloomberg radio to discuss as a new S&P 500 high indicates that a record-extending global stock rally may have further to run with strong economic data easing concerns about the health of the US economy. (Source: Bloomberg)
Business Standard
18-07-2025
- Business
- Business Standard
Dollar index pulls back mildly; set for third straight weekly gain
The dollar index pulled back on Friday morning in Asia following a sharp spike to 3 and half week high in the previous session. Gains in the global reserve currency came on the back of firm US data which supported the Federal Reserves (Fed) stance to hold rates unchanged. US retail sales rose 0.6% on month in June, well above the 0.1% forecast, rebounding from Mays sharp 0.9% drop. Core retail sales, which exclude autos and gas, also climbed 0.5%, up from 0.2% previously. Initial jobless claims fell to 221,000 last week, below the expected 235,000, signaling ongoing tightness in the labor market. Meanwhile, the Philadelphia Fed manufacturing index surprised to the upside, surging to 15.9 in July from -4.0 in June, far exceeding market expectations of -1. Meanwhile, on Thursday, San Francisco Fed President Mary Daly called two rate cuts this year a "reasonable" outlook, while warning against waiting too long. Fed Governor Christopher Waller also said the Fed should cut interest rates 25 basis points at the July meeting. However, FOMC Governor Adriana Kugler noted that it is appropriate to keep the policy rate of interest steady for some time, given low unemployment and building price pressure from tariffs. The dollar index that measures the greenback against a basket of currencies is quoting at 98.24, down 0.22% on the day but is all set for a third straight weekly gain. The University of Michigan Consumer Sentiment, Building Permits, and Housing Starts are due later in the day.
Yahoo
17-07-2025
- Business
- Yahoo
S&P 500 and Nasdaq 100 Rally to Record Highs on a Resilient US Economy
The S&P 500 Index ($SPX) (SPY) Thursday closed up +0.54%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.52%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.74%. September E-mini S&P futures (ESU25) rose +0.59%, and September E-mini Nasdaq futures (NQU25) rose +0.77%. Stocks rallied on Thursday, with the S&P 500 and Nasdaq 100 indexes posting new record highs. Signs that the US economy is holding up, despite tariff uncertainty, boosted stocks. Positive economic news Thursday included a decline in weekly jobless claims to a 3-month low, a stronger-than-expected retail sales report, and a rise in the Philadelphia Fed index to a 5-month high. More News from Barchart Dear Google Stock Fans, Mark Your Calendars for July 23 Dear UnitedHealth Stock Fans, Mark Your Calendars for July 29 Peter Thiel Is Betting Big on This Ethereum Treasury Stock. Should You Buy Shares Now? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! Stocks added to their gains Thursday afternoon on dovish comments from San Francisco Fed President Mary Daly, who said the most recent set of rate projections from Fed officials, issued in June, offered a "reasonable outlook" in pointing to two 25 bp rate cuts by year's end. She added that the Fed should not wait too long before moving on rates, because if they wait until inflation is 2%, they've "likely injured the economy in some way that was completely unnecessary." On the negative side, health insurers retreated on Thursday, led by a -12% plunge in Elevance Health after the company cut its earnings outlook for the year. Also, hawkish comments from Fed Governor Adriana Kugler were bearish for stocks when she said the Fed should keep interest rates on hold "for some time," citing accelerating inflation as tariffs start to boost prices. US weekly initial unemployment claims unexpectedly fell -7,000 to a 3-month low of 221,000, showing a stronger labor market than expectations of an increase to 233,000. US June retail sales rose +0.6% m/m, stronger than expectations of +0.1% m/m, and June retail sales ex-autos rose +0.5% m/m, stronger than expectations of +0.3% m/m. The US June import price index ex-petroleum was unchanged m/m, weaker than expectations of +0.2% m/m. The US July Philadelphia Fed business outlook survey rose +19.9 to a 5-month high of 15.9, stronger than expectations of -1.0. The US July NAHB housing market index rose +1 to 33, right on expectations. On the trade front, President Trump said late Wednesday that he intends to send a tariff letter to more than 150 countries notifying them their tariff rates could be 10% or 15%, effective August 1, and that the group was "not big countries who don't do that much business with the US." Also, signs that the US could ease some of its export restrictions on semiconductor chips to China are bullish for chip makers. Commerce Secretary Lutnick said Nvidia could soon resume sales of its less advanced H20 chips to China, and Advanced Micro Devices received similar assurances from the Commerce Department, a sign that the US may be in the process of negotiating a grand trade deal with China. Treasury Secretary Bessent is expected to meet his Chinese counterpart, Vice Premier He Lifeng, within "the next couple of weeks" and signaled the US will likely extend an August 12 deadline for the easing of sky-high tariffs. However, stocks were undercut by negative trade news that emerged last week and during this past weekend. Over the weekend, President Trump announced that the US will impose 30% tariffs on US imports from the European Union and Mexico, effective August 1. Mr. Trump said last Thursday that a 35% tariff on some Canadian products would take effect on August 1, up from the current 25%. Last week, Mr. Trump imposed a 50% tariff on copper imports, which will include semi-finished goods, and stated that drug companies could face tariffs as high as 200% on imports if they don't relocate production to the US within the next year. Federal funds futures prices are discounting the chances for a -25 bp rate cut at 3% at the July 29-30 FOMC meeting and 58% at the following meeting on September 16-17. The markets will focus on any fresh news regarding tariffs or trade deals during the remainder of this week. On Friday, June housing starts are expected to climb +3.6% m/m to 1.300 million, and June building permits are expected to slip -0.5% m/m to 1.387 million. Also, the University of Michigan's US July consumer sentiment index is expected to climb +0.8 to 61.5. Earnings season began in earnest this week with a focus on big bank earnings results. The consensus is for S&P 500 companies to show Q2 earnings growth of +2.8% y/y, the smallest increase in two years, according to Bloomberg Intelligence. Also, only six of the eleven S&P 500 sectors are projected to post an increase in earnings, the fewest since Q1 of 2023, according to Yardeni Research. Overseas stock markets on Thursday settled higher. The Euro Stoxx 50 closed up +1.49%. China's Shanghai Composite closed up +0.37%. Japan's Nikkei Stock 225 closed up +0.60%. Interest Rates September 10-year T-notes (ZNU25) on Thursday closed down -3.5 ticks. The 10-year T-note yield rose +0.8 bp to 4.463%. T-notes on Thursday posted modest losses following stronger-than-expected US economic news, including June retail sales, weekly initial unemployment claims, and the July Philadelphia Fed manufacturing survey, which signaled a hawkish tone for Fed policy. Also, Thursday's rally in the S&P 500 to a new all-time high reduced safe-haven demand for T-notes. In addition, hawkish comments from Fed Governor Adriana Kugler weighed on T-notes when she said the Fed should keep interest rates on hold "for some time." Finally, rising inflation expectations undercut T-notes when the 10-year breakeven inflation rate rose to a 4.75-month high of 2.450% on Thursday. Losses in T-notes were limited Thursday on carryover support from late Wednesday when President Trump said he has "no plans" on firing Fed Chair Powell. T-notes also found support on signs of easing price pressures after Thursday's news showed the June import price index ex-petroleum rose less than expected. European government bond yields on Thursday were mixed. The 10-year German bund yield fell -1.3 bp to 2.675%. The 10-year UK gilt yield rose to a 6-week high of 4.678% and finished up +1.7 bp to 4.655%. Swaps are discounting the chances at 1% for a -25 bp rate cut by the ECB at the July 24 policy meeting. US Stock Movers United Airlines Holdings (UAL) closed up more than +3% to lead airline stocks higher after CEO Kirby said the second half of the year has become more predictable and the company has potential "upside" to beat its earnings targets as customers returned to booking flights. Also, Alaska Air Group (ALK) closed up more than +3% and American Airlines Group (AAL) closed up more than +2%. In addition, Delta Air Lines (DAL) closed up more than +1%. PepsiCo (PEP) closed up more than +7% to lead gainers in the Nasdaq 100 after reporting Q2 net revenue of $22.73 billion, above the consensus of $22.32 billion. Snap-on (SNA) closed up more than +7% after reporting Q2 net sales of $1.18 billion, stronger than the consensus of $1.16 billion. Steven Madden Ltd (SHOO) closed up more than +6% after Citigroup upgraded the stock to buy from neutral with a price target of $32. CSX Corp (CSX) closed up more than +4% after Semafor reported that Union Pacific is exploring an acquisition of the company. Travelers Cos (TRV) closed up more than +3% to lead gainers in the Dow Jones Industrials after reporting Q1 core EPS of $6.51, well above the consensus of $3.60. Mondelez International (MDLZ) closed up more than +3% after Jefferies upgraded the stock to buy from hold with a price target of $78. Health insurance providers are sliding today, led by a -12% plunge in Elevance Health (ELV) to lead losers in the S&P 500 after cutting its earnings outlook for the year to "approximately" $30 per share, well below a previous forecast of $34.15 to $34.85 per share. Also, Molina Healthcare (MOH) closed down more than -5% and Centene (CNC) closed down more than -4%. In addition, Cigna Group (CI) closed down more than -2% and Humana (HUM) closed down more than -1%. Finally, UnitedHealth Group (UNH) closed down more than -1% to lead losers in the Dow Jones Industrials. Sonic Automotive (SAH) closed down -10% after JPMorgan Chase downgraded the stock to underweight from overweight with a price target of $72. Abbott Laboratories (ABT) closed down more than -8% after reporting Q2 organic sales of +6.90%, below the consensus of +7.03% and forecasting full-year organic sales of +6% to +7%, weaker than the consensus of +7.37%. Starwood Property Trust (STWD) closed down more than -5% after selling over 25.5 million shares of its common stock in an underwritten public offering overnight between $19.91 to $20.33 a share, below Wednesday's closing price of $20.85. Shake Shack (SHAK) closed down more than -1% after Jeffries downgraded the stock to underperform from hold with a price target of $120. Zoetis (ZTS) closed down -1% after Leerink Partners downgraded the stock to market perform from outperform. Earnings Reports (7/18/2025) 3M Co (MMM), Ally Financial Inc (ALLY), American Express Co (AXP), Charles Schwab Corp/The (SCHW), Comerica Inc (CMA), Euronet Worldwide Inc (EEFT), Huntington Bancshares Inc/OH (HBAN), MarketAxess Holdings Inc (MKTX), Regions Financial Corp (RF), Schlumberger NV (SLB), Southern Copper Corp (SCCO), Truist Financial Corp (TFC). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on 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
17-07-2025
- Business
- Yahoo
Solid US Economic News Lifts the Dollar
The dollar index (DXY00) on Thursday rose by +0.29% and posted a 3.5-week high. Signs of strength in the US economy may keep the Fed from cutting interest rates and are supportive of the dollar. Weekly initial unemployment claims unexpectedly fell to a 3-month low, June retail sales rose more than expected, and the July Philadelphia Fed business outlook survey rose to a 5-month high. The dollar added to its gains Thursday after Fed Governor Kugler said it's appropriate for the Fed to hold rates steady for "some time." However, the dollar fell back from its best levels on dovish comments from San Francisco Fed President Mary Daly, who said she expects two 25 bp rate cuts this year. US weekly initial unemployment claims unexpectedly fell -7,000 to a 3-month low of 221,000, showing a stronger labor market than expectations of an increase to 233,000. More News from Barchart Gold and Silver Are Grinding Sideways. Here's What Could Change That, and When It Might Happen. Dollar Rallies to 3-week High Dollar Falls Back on Apparent Trial Balloon for Firing Fed Chair Powell Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. US June retail sales rose +0.6% m/m, stronger than expectations of +0.1% m/m, and Jun retail sales ex-autos rose +0.5% m/m, stronger than expectations of +0.3% m/m. The US June import price index ex-petroleum was unchanged m/m, weaker than expectations of +0.2% m/m. The US July Philadelphia Fed business outlook survey rose +19.9 to a 5-month high of 15.9, stronger than expectations of -1.0. The US July NAHB housing market index rose +1 to 33, right on expectations. Fed Governor Kugler said the Fed should keep interest rates on hold "for some time," citing the acceleration of inflation as tariffs begin to boost prices. San Francisco Fed President Mary Daly said the most recent set of rate projections from Fed officials, issued in June, offered a "reasonable outlook" in pointing to two 25 bp rate cuts by year's end. She added that the Fed should not wait too long before moving on rates, because if they wait until inflation is 2%, they've "likely injured the economy in some way that was completely unnecessary." On the trade front, President Trump said late Wednesday that he intends to send a tariff letter to more than 150 countries notifying them their tariff rates could be 10% or 15%, effective August 1, and that the group was "not big countries who don't do that much business with the US." Also, Commerce Secretary Lutnick said Nvidia could soon resume sales of its less advanced H20 chips to China, and Advanced Micro Devices received similar assurances from the Commerce Department, in a sign that the US may be in the process of negotiating a grand trade deal with China. Treasury Secretary Bessent is expected to meet his Chinese counterpart, Vice Premier He Lifeng, within "the next couple of weeks" and signaled the US will likely extend an August 12 deadline for the easing of sky-high tariffs. Federal funds futures prices are discounting the chances for a -25 bp rate cut at 3% at the July 29-30 FOMC meeting and 58% at the following meeting on September 16-17. EUR/USD (^EURUSD) Thursday fell by -0.40% and posted a 3.5-week low. The dollar's strength on Thursday undercut the euro. The euro also came under pressure on comments from Italian Deputy Premier Tajani, who said the euro is "too strong and the ECB needs to cut interest rates "to weaken the euro. Swaps are pricing in a 1% chance of a -25 bp rate cut by the ECB at the July 24 policy meeting. USD/JPY (^USDJPY) Thursday rose by +0.51%. The yen is under pressure due to concern that Japanese Prime Minister Ishiba's Liberal Democratic Party (LDP) could lose its majority in Sunday's upper house election. The promises by Japan's ruling Liberal Democratic Party of cash handouts to voters and promises of lower taxes by the opposition have sparked concerns of fiscal deterioration, which are bearish for the yen. The yen extended its losses after T-note yields rose. Japanese trade news is mixed for the yen. On the negative side, Japan's June exports unexpectedly fell -0.5% y/y, weaker than expectations of +0.5% y/y. Conversely, June imports unexpectedly rose +0.2% y/y, stronger than expectations of -1.1% y/y. August gold (GCQ25) Thursday closed down -13.80 (-0.41%), and September silver (SIU25) closed up +0.184 (+0.48%). Precious metals on Thursday settled mixed, with the price of gold sliding to a 1.5-week low. Thursday's rally in the dollar index to a 3.5-week high was bearish for metals. Also, strength in stocks on Thursday has curbed safe-haven demand for precious metals. In addition, precious metals came under pressure after President Trump said he's "not planning on doing anything" to remove Fed Chair Powell. Finally, hawkish comments Thursday from Fed Governor Kugler undercut precious metals when she said the Fed should keep interest rates on hold "for some time." Precious metals recovered from their worst levels Thursday, with silver moving into positive territory when San Francisco Fed President Mary Daly said recent Fed rate projections offered a "reasonable outlook" in pointing to two 25 bp rate cuts by year's end. Precious metals also receive safe-haven support from global trade tensions, following President Trump's announcement that he intends to send a tariff letter to more than 150 countries, notifying them that their tariff rates could be 10% or 15%, effective August 1. In addition, fund buying of gold continues to support prices after the amount of gold in ETFs rose to a nearly 2-year high on Wednesday. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on 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
