Category Archives: Market News

(Reuters) – U.S. stocks were little changed in morning trading on Tuesday as investors avoided taking major bets ahead of the two-day Federal Reserve meeting that is expected to roll out a plan to pare the central bank’s bond holdings.

The Dow, however, managed to climb to a fresh record after open, helped by Chevron’s (N:CVX) 0.9 percent rise.

Investors do not expect the central bank to increase interest rates in the meeting but will closely watch Fed Chair Janet Yellen’s views on inflation, which remains stuck below the Fed’s 2-percent target rate.

“If I’d be watching anything, it would be primarily with regard to their plans to raise rates in December, which now the market has a 50-50 odds on,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab (NYSE:SCHW) in Austin, Texas.

However, the biggest determinant of a rate hike in December will be how the equity and bond markets react to the reduction of the Fed’s bond portfolio, said Frederick.

Any reduction in the balance sheet could make it harder for banks and investors to borrow certain Treasuries in the repurchase agreement market, making it more difficult and expensive to bet on or protect against interest rate increases.

Investors are also watching U.S. President Donald Trump’s speech at the United Nations General Assembly where he is expected to urge U.N. member states to increase pressure on North Korea to give up its nuclear weapon ambitions.

At 9:38 a.m. ET (1338 GMT), the Dow Jones Industrial Average (DJI) was up 21.79 points, or 0.1 percent, at 22,353.14, the S&P 500 (SPX) was up 1.13 points, or 0.04 percent, at 2,505 and the Nasdaq Composite (IXIC) was up 4.18 points, or 0.06 percent, at 6,458.82.

Five of the 11 major S&P sectors were higher, led by 0.33 percent gain in the energy index (SPNY) as oil prices edged up to trade close to five-month highs.

Best Buy (N:BBY) fell more than 7 percent after the No.1 U.S. electronics retailer provided financial targets for 2021.

Tesla (O:TSLA) was down 1.86 percent after Jefferies started coverage of the electric car maker’s stock with “underperform”.

Nike (N:NKE) fell 1.62 percent, pulling the Dow down the most, after a slew of price target cuts by brokerages on concerns about intensifying competition from Adidas (DE:ADSGn).

Bob Evans Farms (O:BOBE) rose about 6 percent after packaged foods company Post Holdings (N:POST) said it would buy the frozen meals maker for about $1.5 billion.

Advancing issues outnumbered decliners on the NYSE by 1,386 to 1,005. On the Nasdaq, 1,248 issues rose and 977 fell.

NORTH Korea has been spotted moving yet another Inter-Continental Ballistic Missile (ICBM) towards the western coast, insiders have revealed.

North Korea conducted its sixth and most powerful nuclear test, which it said was a successful detonation of an advanced hydrogen bom

he agreement is aimed at building South Korea’s ability to defend itself against further provocation by removing a limit on the payload their missiles are allowed to carry. The decision follows weeks of discussion between defence and foreign officials of the US and South Korea.

South Korean presidential spokesman Park Soo-hyun said: “President Moon noted the condition was very concerning in that the latest nuclear test showed more power than any previous tests and that North Korea itself has claimed the test involved a hydrogen bomb to be mounted on intercontinental ballistic missiles.”

President Trump said he recognised the need for Seoul to have powerful practical measures and promised to work closely together with the South.

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Updated At 1:40 pm 5/ Sep/Delhi/India

Federal Reserve Chair Janet Yellen will likely keep the door open to an interest rate hike within the next few months when she speaks on Monday, while striking a balanced tone about recently disappointing jobs growth and mixed signals in the U.S. economy.

Yellen’s speech to the World Affairs Council of Philadelphia at 12:30 p.m. ET (1630 GMT) will address the economy and monetary policy, and is the last public comment by U.S. central bankers before their June 14-15 meeting.

The chances of a rate hike at that meeting were all but killed by a report showing the U.S. economy added only 38,000 jobs in May, muting recently upbeat data on consumer spending and overall growth. A sensitive British vote on European Union membership set for later this month is another reason for the Fed to wait.

Economists now see July or September as more likely timing for a quarter-point policy tightening, after the central bank lifted off from near-zero rates in December.

Yellen could note that the May report does not necessarily suggest a more permanent gloom for the labor market, where unemployment at 4.7 percent is at its lowest level since the beginning of the recession. On rates, she could repeat her line from a week-and-a-half ago that a rise could be appropriate “probably in the coming months.”

Millan Mulraine, deputy chief economist at TD Securities in New York, said he expects the Fed Chair to reiterate a “relatively upbeat outlook on growth and inflation, while continuing to emphasize the need for caution.”

While likely keeping a July rate hike on the table, Yellen “will emphasize that any decision to act will be highly data-dependent,” he wrote in a note to clients.

The worst monthly jobs growth in more than 5-1/2 years comes as other parts of the world’s largest economy appear to have rebounded from a sluggish winter. U.S. inflation remains below a 2 percent target but has shown signs of stability.

Earlier on Monday, Boston Fed President Eric Rosengren, a voter on policy this year, said that while rate hikes are on the horizon, the central bank will need to determine whether the employment report “is an anomaly or reflects a broader slowing in labor markets.”

Updated At 7:43 Am /7  JUNE /Delhi/India