Latest news with #MikeCornacchioli
Reuters
5 days ago
- Business
- Reuters
Equities and dollar rise with encouragement from economic data and earnings
NEW YORK/LONDON, July 17 (Reuters) - MSCI's global equity index advanced on Thursday while the dollar rose as investors were encouraged by the latest crop of economic data and earnings reports while oil futures rose on supply concerns amid Middle East attacks. Data on jobless claims showed that the number of Americans filing new applications for unemployment benefits fell last week, pointing to steady job growth so far in July, though some laid off workers are experiencing long spells of unemployment because of a moderation in hiring. U.S. retail sales rebounded more than expected in June, but some of the increase likely reflected higher prices for some goods exposed to tariffs. "In economic data two key releases came out today: retail sales and jobless claims. Both were better than anticipated," said Mike Cornacchioli, investment strategy director and senior vice president at Citizens Private Wealth. "Those two illustrate the strength of the consumer and the labor market. So, a lot of the fears that were placed on the state of the U.S. economy are overblown and have failed to come to fruition at this point in time. Maybe they will some time down the line, but this data and the data that's come in lately has just reinforced the strength of the US economy." Cornacchioli also pointed to strong earnings reports as a boost for equities on Thursday. Taiwan Semiconductor Manufacturing , the world's main maker of advanced AI chips, posted record profits ahead of expectations. It warned that future income might be hit by U.S. tariffs, though perhaps not until the fourth quarter. Also, GE Aerospace lifted its profit outlook with jet engine deliveries rising as efforts to fix supply constraints showed results. After four straight days of losses, Europe's STOXX 600 (.STOXX), opens new tab index ended up 0.96%, with a boost from strong earnings reports including record orders at Swiss engineering firm ABB (ABBN.S), opens new tab. MSCI's gauge of stocks across the globe (.MIWD00000PUS), opens new tab rose 5.29 points, or 0.57%, to 926.40, putting it closer to its recent record levels. And Wall Street followed Europe higher but at a more modest pace with boosts including PepsiCoPEP.O, opens new tab which rallied more than 7% after reporting better-than-expected quarterly results on steady demand in the U.S. and major markets, including Europe. In another positive sign for the consumer, United AirlinesUAL.O, opens new tab shares rose after executives said the company has seen strong bookings in the past three weeks. At 02:34 p.m., the Dow Jones Industrial Average (.DJI), opens new tab was up 265.33 points, or 0.60%, at 44,520.11, the S&P 500 (.SPX), opens new tab rose 35.40 points, or 0.57%, to 6,299.10, which would be a record closing high, and the Nasdaq Composite (.IXIC), opens new tab climbed 163.94 points, or 0.79%, to 20,893.99, hitting fresh record highs. Thursday's market gains follow a dramatic wobble during the prior session when Trump said he was highly unlikely to fire Federal Reserve chair Jerome Powell. However, he left the door open to the possibility of ousting him and renewed his criticism of the central bank chief for not cutting U.S. interest rates. In currencies, the dollar rose on Thursday after the economic data. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.39% to 98.73. The euro was down 0.42% at $1.1585. Against the Japanese yen , the dollar strengthened 0.58% to 148.72 as polls showed Prime Minister Shigeru Ishiba's coalition was in danger of losing its majority in the upper house in upcoming elections. U.S. Treasury yields were higher in a relatively choppy session. Yields had briefly spiked higher and then fallen following the sales and jobless claims data, which showed the world's largest economy on a stable footing and supported the Fed's patient stance on monetary easing. "Consumers did not react to the tariff announcements or the resultant decline in financial markets or the weakness in business and consumer sentiment with defensive recoil. Instead, they went out and bought big ticket items with an opportunistic view," wrote Tom Simons, chief U.S. economist, at Jefferies in an email after the retail sales data. The yield on benchmark U.S. 10-year notes rose 0.4 basis points to 4.459%, from 4.455% late on Wednesday while the 30-year bond yield fell 0.4 basis points to 5.0114% from 5.015%. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 3 basis points to 3.915%, from 3.885% late on Wednesday. Oil prices settled higher after drones struck Iraqi Kurdistan oil fields for a fourth day, pointing to continued risk in the volatile region. U.S. crude settled up 1.75%, or $1.16 at $67.54 per barrel and Brent settled at $69.52 a barrel, up 1.46%, or $1.00 at $67.54. "Some of the gains are reaction to drone attacks in Iraq," said Andrew Lipow, president of Lipow Oil Associates. "It shows how vulnerable oil supplies are to attacks using low technology." Gold prices were lower after the upbeat U.S. economic data aided the Fed's cautious stance on rate cuts. Spot gold fell 0.26% to $3,337.49 an ounce. U.S. gold futures fell 0.38% to $3,339.90 an ounce.
CNA
5 days ago
- Business
- CNA
Equities and dollar rise with encouragement from economic data and earnings
NEW YORK/LONDON :MSCI's global equity index advanced on Thursday while the dollar rose as investors were encouraged by the latest crop of economic data and earnings reports while oil futures rose on supply concerns amid Middle East attacks. Data on jobless claims showed that the number of Americans filing new applications for unemployment benefits fell last week, pointing to steady job growth so far in July, though some laid off workers are experiencing long spells of unemployment because of a moderation in hiring. U.S. retail sales rebounded more than expected in June, but some of the increase likely reflected higher prices for some goods exposed to tariffs. "In economic data two key releases came out today: retail sales and jobless claims. Both were better than anticipated," said Mike Cornacchioli, investment strategy director and senior vice president at Citizens Private Wealth. "Those two illustrate the strength of the consumer and the labor market. So, a lot of the fears that were placed on the state of the U.S. economy are overblown and have failed to come to fruition at this point in time. Maybe they will some time down the line, but this data and the data that's come in lately has just reinforced the strength of the US economy." Cornacchioli also pointed to strong earnings reports as a boost for equities on Thursday. Taiwan Semiconductor Manufacturing, the world's main maker of advanced AI chips, posted record profits ahead of expectations. It warned that future income might be hit by U.S. tariffs, though perhaps not until the fourth quarter. Also, GE Aerospace lifted its profit outlook with jet engine deliveries rising as efforts to fix supply constraints showed results. After four straight days of losses, Europe's STOXX 600 index ended up 0.96 per cent, with a boost from strong earnings reports including record orders at Swiss engineering firm ABB. MSCI's gauge of stocks across the globe rose 5.29 points, or 0.57 per cent, to 926.40, putting it closer to its recent record levels. And Wall Street followed Europe higher but at a more modest pace with boosts including PepsiCo PEP.O which rallied more than 7 per cent after reporting better-than-expected quarterly results on steady demand in the U.S. and major markets, including Europe. In another positive sign for the consumer, United Airlines UAL.O shares rose after executives said the company has seen strong bookings in the past three weeks. At 02:34 p.m., the Dow Jones Industrial Average was up 265.33 points, or 0.60 per cent, at 44,520.11, the S&P 500 rose 35.40 points, or 0.57 per cent, to 6,299.10, which would be a record closing high, and the Nasdaq Composite climbed 163.94 points, or 0.79 per cent, to 20,893.99, hitting fresh record highs. Thursday's market gains follow a dramatic wobble during the prior session when Trump said he was highly unlikely to fire Federal Reserve chair Jerome Powell. However, he left the door open to the possibility of ousting him and renewed his criticism of the central bank chief for not cutting U.S. interest rates. In currencies, the dollar rose on Thursday after the economic data. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.39 per cent to 98.73. The euro was down 0.42 per cent at $1.1585. Against the Japanese yen, the dollar strengthened 0.58 per cent to 148.72 as polls showed Prime Minister Shigeru Ishiba's coalition was in danger of losing its majority in the upper house in upcoming elections. U.S. Treasury yields were higher in a relatively choppy session. Yields had briefly spiked higher and then fallen following the sales and jobless claims data, which showed the world's largest economy on a stable footing and supported the Fed's patient stance on monetary easing. "Consumers did not react to the tariff announcements or the resultant decline in financial markets or the weakness in business and consumer sentiment with defensive recoil. Instead, they went out and bought big ticket items with an opportunistic view," wrote Tom Simons, chief U.S. economist, at Jefferies in an email after the retail sales data. The yield on benchmark U.S. 10-year notes rose 0.4 basis points to 4.459 per cent, from 4.455 per cent late on Wednesday while the 30-year bond yield fell 0.4 basis points to 5.0114 per cent from 5.015 per cent. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 3 basis points to 3.915 per cent, from 3.885 per cent late on Wednesday. Oil prices settled higher after drones struck Iraqi Kurdistan oil fields for a fourth day, pointing to continued risk in the volatile region. U.S. crude settled up 1.75 per cent, or $1.16 at $67.54 per barrel and Brent settled at $69.52 a barrel, up 1.46 per cent, or $1.00 at $67.54. "Some of the gains are reaction to drone attacks in Iraq," said Andrew Lipow, president of Lipow Oil Associates. "It shows how vulnerable oil supplies are to attacks using low technology." Gold prices were lower after the upbeat U.S. economic data aided the Fed's cautious stance on rate cuts.
CNA
5 days ago
- Business
- CNA
Equities and dollar rise with encouragement from economic data and earnings reports
NEW YORK/LONDON :MSCI's global equity index was advancing on Thursday while the dollar rose as investors were encouraged by the latest crop of economic data and earnings reports. Data on jobless claims showed that the number of Americans filing new applications for unemployment benefits fell last week, pointing to steady job growth so far in July, though some laid off workers are experiencing long spells of unemployment because of a moderation in hiring. U.S. retail sales rebounded more than expected in June, but some of the increase likely reflected higher prices for some goods exposed to tariffs. "In economic data two key releases came out today: retail sales and jobless claims. Both were better than anticipated," said Mike Cornacchioli, investment strategy director and senior vice president at Citizens Private Wealth. "Those two illustrate the strength of the consumer and the labor market. So, a lot of the fears that were placed on the state of the U.S. economy are overblown and have failed to come to fruition at this point in time. Maybe they will some time down the line, but this data and the data that's come in lately has just reinforced the strength of the US economy." Cornacchioli also pointed to strong earnings reports as a boost for equities on Thursday. Taiwan Semiconductor Manufacturing, the world's main maker of advanced AI chips, posted record profits ahead of expectations. It warned that future income might be hit by U.S. tariffs, though perhaps not until the fourth quarter. Also, GE Aerospace lifted its profit outlook with jet engine deliveries rising as efforts to fix supply constraints showed results. MSCI's gauge of stocks across the globe rose 3.86 points, or 0.42 per cent, to 924.97. Europe's STOXX 600 index rose 0.92 per cent, boosted by strong earnings after record orders at Swiss engineering firm ABB and record $13.5 billion profits. And Wall Street followed Europe higher but at a more modest pace. At 11:17 a.m. the Dow Jones Industrial Average rose 72.83 points, or 0.16 per cent, to 44,327.61, the S&P 500 rose 20.73 points, or 0.33 per cent, to 6,284.32 and the Nasdaq Composite rose 142.41 points, or 0.69 per cent, to 20,872.92. Thursday's gains follow a dramatic wobble during the prior session when Trump said he was highly unlikely to fire Federal Reserve chair Jerome Powell. However he left the door open to the possibility of ousting him and renewed his criticism of the central bank chief for not cutting U.S. interest rates. In currencies, the dollar rose on Thursday after the economic data. Against the Japanese yen, the dollar strengthened 0.47 per cent to 148.56 as polls showed Prime Minister Shigeru Ishiba's coalition was in danger of losing its majority in the upper house in upcoming elections. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.37 per cent to 98.71. The euro was down 0.4 per cent at $1.1587. U.S. Treasury yields edged lower after briefly spiking following the economic data which showed the world's largest economy on a stable footing and supported the Fed's patient stance on monetary easing. The yield on benchmark U.S. 10-year notes fell 1.2 basis points to 4.443 per cent, from 4.455 per cent late on Wednesday while the 30-year bond yield fell 2.4 basis points to 4.9905 per cent from 5.015 per cent. However, the 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 2.4 basis points to 3.909 per cent, from 3.885 per cent late on Wednesday. In commodity markets, oil prices rose even as global trade tensions appeared to cool, with analysts pointing to low inventories and renewed Middle East risks as factors supporting the market. U.S. crude rose 1.18 per cent to $67.16 a barrel and Brent rose to $68.99 per barrel, up 0.69 per cent on the day. Gold prices were lower after the upbeat U.S. economic data aided the Fed's cautious stance on rate cuts.
Reuters
5 days ago
- Business
- Reuters
Equities and dollar rise with encouragement from economic data and earnings reports
NEW YORK/LONDON, July 17 (Reuters) - MSCI's global equity index was advancing on Thursday while the dollar rose as investors were encouraged by the latest crop of economic data and earnings reports. Data on jobless claims showed that the number of Americans filing new applications for unemployment benefits fell last week, pointing to steady job growth so far in July, though some laid off workers are experiencing long spells of unemployment because of a moderation in hiring. U.S. retail sales rebounded more than expected in June, but some of the increase likely reflected higher prices for some goods exposed to tariffs. "In economic data two key releases came out today: retail sales and jobless claims. Both were better than anticipated," said Mike Cornacchioli, investment strategy director and senior vice president at Citizens Private Wealth. "Those two illustrate the strength of the consumer and the labor market. So, a lot of the fears that were placed on the state of the U.S. economy are overblown and have failed to come to fruition at this point in time. Maybe they will some time down the line, but this data and the data that's come in lately has just reinforced the strength of the US economy." Cornacchioli also pointed to strong earnings reports as a boost for equities on Thursday. Taiwan Semiconductor Manufacturing , the world's main maker of advanced AI chips, posted record profits ahead of expectations. It warned that future income might be hit by U.S. tariffs, though perhaps not until the fourth quarter. Also, GE Aerospace lifted its profit outlook with jet engine deliveries rising as efforts to fix supply constraints showed results. MSCI's gauge of stocks across the globe (.MIWD00000PUS), opens new tab rose 3.86 points, or 0.42%, to 924.97. Europe's STOXX 600 (.STOXX), opens new tab index rose 0.92%, boosted by strong earnings after record orders at Swiss engineering firm ABB and record $13.5 billion profits. And Wall Street followed Europe higher but at a more modest pace. At 11:17 a.m. the Dow Jones Industrial Average (.DJI), opens new tab rose 72.83 points, or 0.16%, to 44,327.61, the S&P 500 (.SPX), opens new tab rose 20.73 points, or 0.33%, to 6,284.32 and the Nasdaq Composite (.IXIC), opens new tab rose 142.41 points, or 0.69%, to 20,872.92. Thursday's gains follow a dramatic wobble during the prior session when Trump said he was highly unlikely to fire Federal Reserve chair Jerome Powell. However he left the door open to the possibility of ousting him and renewed his criticism of the central bank chief for not cutting U.S. interest rates. In currencies, the dollar rose on Thursday after the economic data. Against the Japanese yen , the dollar strengthened 0.47% to 148.56 as polls showed Prime Minister Shigeru Ishiba's coalition was in danger of losing its majority in the upper house in upcoming elections. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.37% to 98.71. The euro was down 0.4% at $1.1587. U.S. Treasury yields edged lower after briefly spiking following the economic data which showed the world's largest economy on a stable footing and supported the Fed's patient stance on monetary easing. The yield on benchmark U.S. 10-year notes fell 1.2 basis points to 4.443%, from 4.455% late on Wednesday while the 30-year bond yield fell 2.4 basis points to 4.9905% from 5.015%. However, the 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 2.4 basis points to 3.909%, from 3.885% late on Wednesday. In commodity markets, oil prices rose even as global trade tensions appeared to cool, with analysts pointing to low inventories and renewed Middle East risks as factors supporting the market. U.S. crude rose 1.18% to $67.16 a barrel and Brent rose to $68.99 per barrel, up 0.69% on the day. Gold prices were lower after the upbeat U.S. economic data aided the Fed's cautious stance on rate cuts. Spot gold fell 0.42% to $3,332.19 an ounce. U.S. gold futures fell 0.63% to $3,331.40 an ounce.
