Wall Street climbed Thursday after data showing services-sector activity at a three-year low fueled expectations the Federal Reserve would cut interest rates in an effort to thwart a wider economic downturn.
NOTE TO EDITORS: Arrows on graphic are corrected to show that stocks gained, not declined.
A choppy session on Wall Street Thursday.
Earlier on, stocks dropped on word that growth in the services sector had slowed to a three-year low, but recovered on the notion that the weak data will push the Federal Reserve to further cut interest rates.
The big indexes snapped a two-day losing streak.
The S&P 500 gained eight-tenths percent.
Kramer Capital Research chief investment officer, Hilary Kramer: SOUNDBITE: KRAMER CAPITAL RESEARCH CHIEF INVESTMENT OFFICER, HILARY KRAMER (ENGLISH) SAYING: "The Fed will be concerned about global recession.
You know, growth slowing internationally and therefore will cut rates.
It doesn't really matter where our numbers come out.
The Fed is going to be cutting." PepsiCo shares rallied, The beverage and snack maker's quarterly profit and sales beat analysts' expectations.
Its low-calorie version of its Gatorade sports drink lifted demand for its beverages in North America.
Constellation Brands shares fizzled.
The beer and wine maker wrote down its investment in Canopy Growth, recording a nearly $55 million loss in the cannabis producer.
GoPro shares nosedived.
The action camera maker cut its forecast for the second half due to a delay in production of its new HERO8 Black cameras.
U.S. stocks tumbled on Monday, with the S&P 500 posting its biggest daily decline in four weeks, as soaring coronavirus cases and uncertainty about a fiscal relief bill in Washington dimmed the outlook for the U.S. economic recovery. This report produced by Yahaira Jacquez.
Wall Street lost ground on Tuesday, with halted COVID-19 vaccine trials and an elusive U.S. stimulus agreement weighing on sentiment as third quarter earnings season got underway. Fred Katayama reports.
The Federal Reserve is targeting above 2% inflation. Scott Minerd, Guggenheim global CIO told Bloomberg on Wednesday it is "virtually impossible" for the Fed to achieve that without creating a bubble in asset prices. "The reality is that the inefficiencies that are building up in the system." Minerd said misinformation and mistaken investments will pose a challenge to investors.
On Thursday, US stocks fell 320 points. The drop comes even as weekly jobless-claims data came in better than expected. Business Insider reports that weekly jobless claims fell by more than 30,000 from the previous week, to 860,000. Tech stocks led the decline. Investors continued to process Federal Reserve Chairman Jerome Powell's comments expressing uncertainty about the economic recovery. Powell also said the Fed didn't expect to raise interest rates until at least 2023.
Equity benchmark indices traded lower during early hours on Thursday on the back of weak global cues after the US Federal Reserve indicated the interest rate could stay close to zero for years. At 10:15 am, the BSE S-P Sensex was down by 141 points or 0.36 per cent at 39,162 while the Nifty 50 lost by 39 points or 0.34 per cent at 11,565. Except for Nifty IT and pharma, all sectoral indices at the National Stock Exchange were in the negative terrain with Nifty private bank losing by 1 per cent and financial service by 0.9 per cent. Among stocks, ICICI Bank dropped by 1.3 per cent to Rs 369.85 per share while HDFC Bank lowered by 1 per cent. The other major losers were Hindalco, Tata Consultancy Services, Bajaj Auto and Tata Motors.However, HCL Technologies moved up by 2 per cent to Rs 811.20 per share and Tech Mahindra by 1.7 per cent. Dr Reddy's, Hero MotoCorp, Grasim and Asian Paints also traded with a positive bias.
AstraZeneca has resumed the U.S. trial of its experimental COVID-19 vaccine after approval by regulators, and Johnson & Johnson is preparing to resume its trial early next week, the companies said on Friday. Fred Katayama reports.
Mattel reported a surprise rise in quarterly sales on Thursday and forecast more growth in the holiday season, as retailers rushed to restock their shelves of Barbie dolls and other toys in high demand from stuck-at-home kids. Fred Katayama reports.
A California appeals court on Thursday unanimously ruled against ride-hailing companies Uber Technologies and Lyft, saying they must reclassify their drivers in the state as employees. Fred Katayama reports.
The Dow and S&P 500 fell on lackluster earnings, election worries and rising COVID-19 cases worldwide, but tech stocks fared better and had positive news after the close when Microsoft topped sales forecasts. Conway G. Gittens has the market action.
The S&P 500 posted a nominal gain on Friday as further clarity regarding the timeline for the development of a coronavirus vaccine and much better-than-expected retail sales data brought buyers back to the market. Fred Katayama reports.
Stock market analysts always worry around the time of a Presidential election. The markets can react unpredictably when a certain candidate gets elected. According to Stifel the S&P 500 will sell off initially if the Senate or Presidency remains Republican after the election. Business Insider reports that a note from Stifel says the S&P may fall following this election outcome. With the Republicans in charge hopes of a large fiscal stimulus will fade.
Long-term exposure to air pollution has been linked to an increased risk of dying from COVID-19 and, for the first time, a study has estimated the proportion of deaths from the coronavirus that could be attributed to the exacerbating effects of air pollution for every country in the world. The study, published in Cardiovascular Research on Tuesday, estimated that about 15% of deaths worldwide from COVID-19 could be attributed to long-term exposure to air pollution. In Europe the proportion was about 19%, in North America it was 17%, and in East Asia about 27%. In their CVR paper, the researchers write that these proportions are an estimate of "the fraction of COVID-19 deaths that could be avoided if the population were exposed to lower counterfactual air pollution levels without fossil fuel-related and other anthropogenic [caused by humans] emissions". One limitation of the research is that epidemiological data from the US were collected at the level of counties rather than from individuals, which means that it is more difficult to exclude confounding factors. Even though 20 factors that could affect the results were accounted for, additional factors cannot be excluded. A second limitation is that data have been collected in middle- to high-income countries (China, US, and corroborated by data from Europe); the calculations were carried out for the whole world, meaning that the results for low-income countries may be less robust.
New research from Harvard and Calgary Universities have shed new light on who is more or less likely to observe COVID-19 social distancing guidelines. UPI reports more North American and European men, and young adults of both sexes, fail to adhere to COVID-19 social distancing guidelines than older adults. The data showed 59% of male respondents said they adhered to local social distancing guidelines, while 69% of female respondents reported doing so.