DIRS.INFO The most relevant business & tech news

☆ US services sector softens, factory orders boosted by defense
▼ + stars: | 2023-06-05 | by ( ) www.reuters.com time to read: +5 min

"Momentum had been very strong in the services sector since the reopening process began, but the sector is clearly cooling down now," Thomas Simons, U.S. economist at Jefferies, wrote in a note. The services sector is at the center of the battle against inflation, as services prices tend to be stickier and less responsive to rate hikes. ISM services PMISome economists view the ISM services prices paid gauge as a good predictor of personal consumption expenditures (PCE) inflation. Excluding the defense sector, orders were down 0.4%, and excluding transportation orders - where military orders again had the largest footprint - bookings were down 0.2%. With consumer spending shifting more toward services, consumer goods orders slid for a third straight month to their lowest level since February 2022.

Persons: Thomas Simons, Simons, Lucia Mutikani, Dan Burns, Chizu Nomiyama, Paul Simao Organizations: Federal, Institute for Supply Management, Reuters, PMI, ISM, Fed, Jefferies, U.S, Services, Commerce Department, Factory, Thomson Locations: U.S

☆ Strong US consumer spending, inflation readings put Fed in tough spot
▼ + stars: | 2023-05-26 | by ( Lucia Mutikani | ) www.reuters.com time to read: +7 min

Consumer spending jumped 0.8% last month after gaining 0.1% in March. Economists polled by Reuters had forecast consumer spending, which accounts for more than two-thirds of U.S. economic activity, would rise 0.4%. Adjusting for inflation, consumer spending shot up 0.5% after being unchanged in March. Consumer spending is being supported by strong wage gains in a tight labor market. The current pace of consumer spending is, however, unlikely to be sustained as Americans grow weary of inflation.

☆ Stifel raises S&P 500 target on falling inflation expectations, says buy cyclical stocks
▼ + stars: | 2023-05-08 | by ( Sarah Min | ) www.cnbc.com time to read: +2 min

Stifel just got more bullish on where stocks will land at the halfway point of 2023, and encouraged investors buy cyclical stocks. However, the strategist expects investors will not have to worry about a downturn until later down the road. Given this, Bannister said he's been bullish on cyclical growth and value stocks since October. Meanwhile, he expects cyclical value stocks in basic materials, capital goods, banks, transportation and others that took a hit during the regional banking crisis are "oversold" if the economy continues to hold up. He said defensive value stocks are "last year's story," while defensive growth stocks will benefit when the U.S. reaches a recession.

☆ Will wages outpace inflation for long? It depends on the job
▼ + stars: | 2023-05-05 | by ( Bryan Mena | ) edition.cnn.com time to read: +6 min

Washington, DC CNN —Wages are now finally beating inflation, according to the latest quarterly data on wage growth. That was the biggest monthly increase since March 2022, though wage growth had gradually slowed since then. “The folks who left one company and went to another are the ones who are still benefiting from wage growth,” said Morgan Llewellyn, chief data scientist at Jobvite. Part of the continued strength in wage growth largely has to do with employers’ difficulty in hiring, which varies by industry. “Wage growth has still been higher for job changers than job stayers and that suggests that there’s still a shortage of labor for some companies,” said Dawn Fay, operational president at staffing firm Robert Half.

☆ U.S. Trade With World Rose in March on Energy, Auto Shipments
▼ + stars: | 2023-05-04 | by ( Harriet Torry | Anthony Debarros | ) www.wsj.com time to read: 1 min

Imports declined 0.3% in March from the prior month, reflecting lower shipments of semiconductors, chemicals and cellphones and higher imports of consumer goods. Photo: Jordan Vonderhaar/Bloomberg NewsU.S. trade with the rest of the world increased in March as companies shipped more oil, natural gas and vehicles overseas and exported more products to China after it lifted Covid restrictions. Newsletter Sign-up Real Time Economics The latest economic news, analysis and data curated weekdays by WSJ's Jeffrey Sparshott. Preview SubscribeU.S. businesses also imported more consumer goods, but reduced imports of industrial supplies and capital goods. The trade figures aren’t adjusted for inflation and reflect both demand and price changes.

☆ US trade deficit narrows sharply in March as exports rise
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +2 min

WASHINGTON, May 4 (Reuters) - The U.S. trade deficit narrowed sharply in March as exports increased, which could position trade to continue contributing to economic growth in the second quarter. The trade deficit contracted 9.1% to $64.2 billion, the Commerce Department said on Thursday. But consumer goods imports increased $2.4 billion, lifted by pharmaceutical preparations, other textile apparel and household goods. Adjusting for inflation, the goods trade deficit narrowed 4.4% to $99.4 billion. A smaller trade deficit was one of the contributors to the economy's 1.1% annualized growth rate in the first quarter.

☆ US factory orders rebound on aircraft in March
▼ + stars: | 2023-05-02 | by ( ) www.reuters.com time to read: +2 min

Factory orders increased 0.9% after decreasing 1.1% in February, the Commerce Department said on Tuesday. Orders increased 2.4% on a year-on-year basis in March. Orders for transportation equipment increased 9.0% after dropping 3.2% in February. Civilian aircraft orders soared 78.3%. Motor vehicle orders fell 0.6%.

☆ Oil prices rebound after recession fear, Russia exports fuelled earlier losses
▼ + stars: | 2023-04-27 | by ( Katya Golubkova | ) www.reuters.com time to read: +2 min

TOKYO, April 27 (Reuters) - Oil prices rose on Thursday, paring earlier losses that were fuelled by U.S. recession fear and increased Russian oil exports dulling the impact of OPEC production cuts. "Crude oil slumped, as prospects of weaker economic growth offset a bullish inventory report," ANZ Research said in a client note. "The market is also questioning the validity of OPEC's recent production cut amid strong exports of Russian crude." Energy Information Administration (EIA) data showed U.S. crude inventories fell last week by 5.1 million barrels to 460.9 million barrels, far exceeding analysts' average forecast of a 1.5 million drop in a Reuters poll. Oil loading from Russia's western ports in April will be the highest since 2019, above 2.4 million barrels per day, despite Moscow's pledge to cut output, sources have said.

☆ Strong US consumer spending seen driving economy in first quarter
▼ + stars: | 2023-04-27 | by ( Lucia Mutikani | ) www.reuters.com time to read: +5 min

According to a Reuters survey of economists, GDP growth likely increased at a 2.0% annualized rate last quarter after rising at a 2.6% pace in the fourth quarter. Estimates ranged from a growth rate of 0.4% to a 3.3% pace. DOWNSIDE RISKSome institutions cut their GDP growth estimates, with Wells Fargo slashing its forecast by a full percentage point. Still, consumer spending is expected to have grown at a pace faster than the pedestrian 1.0% rate logged in the fourth quarter. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, is expected to be driven by demand for services.

☆ Asian shares sink on banking jitters, US economic concerns
▼ + stars: | 2023-04-27 | by ( Stella Qiu | ) www.reuters.com time to read: +4 min

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) were 0.3% lower on Thursday, while Japan's Nikkei (.N225) lost 0.4%. Data showed that new orders for key U.S.-manufactured capital goods fell more than expected in March, suggesting that business spending on equipment was likely a drag on economic growth in the first quarter. Wells Fargo lowered its forecast for U.S. GDP growth by 100 basis points to a 0.8% rise. The dollar index , which measures the currency against six major rivals, dropped to 101.4 on fresh concerns over a U.S. slowdown. U.S. crude futures edged up 0.3% to $74.5 per barrel, while Brent crude futures rose 0.5% to $78.09 per barrel.

☆ Euro near one-year peak as US economic risks weigh on dollar
▼ + stars: | 2023-04-27 | by ( Kevin Buckland | ) www.reuters.com time to read: +3 min

TOKYO, April 27 (Reuters) - The euro hovered near a one-year high versus the dollar on Thursday, as Europe's resilient economy contrasted with banking contagion risks in the United States, the debt ceiling standoff and a potential recession. Europe's single currency ticked up 0.05% to $1.10415, edging back toward the overnight peak at $1.1096, the highest since April of last year. IG analyst Tony Sycamore also sees risks skewed to the downside for the euro against the dollar. IG's Sycamore says the initial strength was driven by U.S. banking concerns, but the market was "apparently spooked by a large sell order." Provided bitcoin can remain above $25,000, Sycamore expects the token to test this month's high at $31,035.

☆ Euro near one-year peak as U.S. economic risks weigh on dollar
▼ + stars: | 2023-04-27 | by ( ) www.cnbc.com time to read: +3 min

The euro hovered near a one-year high versus the dollar on Thursday, as Europe's resilient economy contrasted with banking contagion risks in the United States, the debt ceiling standoff and a potential recession. Europe's single currency ticked up 0.05% to $1.10415, edging back toward the overnight peak at $1.1096, the highest since April of last year. IG analyst Tony Sycamore also sees risks skewed to the downside for the euro against the dollar. Aussie dollar traders are more confident that the Reserve Bank of Australia will keep rates unchanged for a second meeting next week after some softness in consumer inflation data on Wednesday. Bitcoin firmed to around $29,060, following a day when it jumped as high as $30,022, only to then slide as low as $27,242.

☆ Gold rises on subdued dollar, US data in spotlight
▼ + stars: | 2023-04-27 | by ( Arundhati Sarkar | ) www.reuters.com time to read: +2 min

Spot gold rose 0.4% to $1,996.50 per ounce by 0230 GMT, while U.S. gold futures climbed 0.5% to $2,005.20. Making bullion less expensive for other currencies holders, the dollar index eased 0.1% on the day. The U.S. House of Representatives on Wednesday narrowly passed a bill to raise the government's $31.4 trillion debt ceiling. Therefore, given the "uneasy tone with the banking situation" and the "debt ceiling uncertainties, gold will probably be more sensitive to the upside than to the downside," Meir said. Elsewhere, spot silver rose 0.5% to $25.02 per ounce, platinum added 0.3% to $1,092.68, and palladium ticked 0.1% up to $1,513.81.

Oil prices dropped almost 4% on Wednesday as jitters about a U.S. economic downturn overshadowed a larger-than-expected fall in U.S. crude inventories. The OPEC+ group of leading oil producers does not see the need for further oil output cuts but is always able to adjust its policy, Novak said. Data on Thursday showed U.S. economic growth slowed by more than expected in the first quarter, although jobless claims fell in the week ending April 22. Oil prices were also pressured as weak risk sentiment spread from the banking sector after First Republic Bank's continued slump. Analysts see weak refinery margins as a major contributor to the recent oil price decline, with oil broker PVM's Tamas Varga pointing to heating oil and gasoil as "the main possible culprit for the outsized weakness".

☆ Oil prices rebound after recession fear, Russia exports fueled earlier losses
▼ + stars: | 2023-04-27 | by ( ) www.cnbc.com time to read: +2 min

Oil prices rose on Thursday, paring earlier losses that were fueled by U.S. recession fear and increased Russian oil exports dulling the impact of OPEC production cuts. "Crude oil slumped, as prospects of weaker economic growth offset a bullish inventory report," ANZ Research said in a client note. "The market is also questioning the validity of OPEC's recent production cut amid strong exports of Russian crude." Energy Information Administration data showed U.S. crude inventories fell last week by 5.1 million barrels to 460.9 million barrels, far exceeding analysts' average forecast of a 1.5 million drop in a Reuters poll. Oil loading from Russia's western ports in April will be the highest since 2019, above 2.4 million barrels per day, despite Moscow's pledge to cut output, sources have said.

☆ Morning Bid: Fresh spur from Meta and Europe's banks
▼ + stars: | 2023-04-27 | by ( ) www.reuters.com time to read: +5 min

Perhaps even more surprising, Europe's big banks are wowing the gallery too - showing limited, if any, fallout from the failure of ailing Credit Suisse at the end of the quarter. And so the glass appears half full again despite background tensions around regional U.S. banks and as wider markets brace for several weeks of a U.S. debt ceiling standoff. With Amazon reporting later, its stock rose another 2% ahead of the bell too. The U.S. House of Representatives on Wednesday narrowly passed a bill to raise the government's $31.4 trillion debt ceiling that includes sweeping spending cuts over the next decade. The dollar was marginally weaker, with crude oil prices struggling to recover from their latest lunge lower this week.

☆ 'Welcome to the recession:' Most of Wall Street still sees trouble ahead for the U.S. economy
▼ + stars: | 2023-04-27 | by ( Jeff Cox | ) www.cnbc.com time to read: +5 min

In fact, excluding the drag from inventories, GDP growth actually would have been closer to 3.4%, well above trend. However, most economists and strategists on Wall Street think the U.S. economy is still on the path to recession. We continue to expect the drag from higher interest rates and tightening credit conditions to push the economy into a mild recession soon." Jim Baird, chief investment officer, Plante Moran Financial Advisors "For all the discussion of recession risk – which is very real – consumers remain willing and able to spend. Recession risks remain elevated; the first estimate of Q1 GDP confirms that the economy continues to slow.

Microsoft shares rallied 7.2% following upbeat quarterly earnings and sales, including of robust artificial intelligence products. The Dow Jones Industrial Average (.DJI) fell 228.96 points, or 0.68%, to 33,301.87; and the S&P 500 (.SPX) lost 15.64 points, or 0.38%, at 4,055.99. The S&P 500 technology index (.SPLRCT) was the sole gainer among the benchmark's 11 major industry sectors, adding 1.7%. Of the 163 S&P 500 companies that reported first-quarter profit through Wednesday morning, 79.8% topped analysts' expectations, as per Refinitiv IBES data. It helped push the S&P 500 bank index (.SPXBK) down 1.4% on the day.

☆ Oil drops nearly 4% as recession fears outweigh US inventory draw
▼ + stars: | 2023-04-26 | by ( Laila Kearney | ) www.reuters.com time to read: +3 min

Energy Information Administration (EIA) data showing U.S. crude inventories fell last week by 5.1 million barrels to 460.9 million barrels helped to limit the price fall, far exceeding analyst forecasts of a 1.5 million drop in a Reuters poll. Gasoline and distillate stocks also drew down, sinking by 2.4 million barrels to 221.1 million barrels and almost 600,000 barrels to 111.5 million barrels, respectively, the EIA said. A forecast of higher refinery activity, but lower crude exports, will continue a push and pull for weeks. Oil prices fell more than 2% on Tuesday as lingering economic concerns and expectations of further interest rate hikes that could curtail fuel demand growth countered signs of improving short-term consumption gains. "This (data) will add credence to claims that the U.S. economy is edging closer to a recession," said PVM Oil's Stephen Brennock.

☆ Tech powers Nasdaq gains; recession fears weigh on cyclicals, dollar
▼ + stars: | 2023-04-26 | by ( Stephen Culp | ) www.reuters.com time to read: +4 min

[1/3] Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., April 14, 2023. "(Recession) is still out there as a pretty significant risk, but handicapping the timing of it is difficult." Upbeat earnings from Microsoft (MSFT.O), Alphabet Inc (GOOGL.O) and Boeing Co (BA.N) took the sting out of some disappointing economic data, which suggested weakening corporate expenditures on core capital goods. Emerging market stocks rose 0.23%. The dollar index fell 0.35%, with the euro up 0.57% to $1.1034.

☆ Techs lift the S&P 500, dollar softens
▼ + stars: | 2023-04-26 | by ( Stephen Culp | ) www.reuters.com time to read: +3 min

SINGAPORE, April 26 (Reuters) - The S&P 500 inched higher on Wednesday and the dollar weakened as investors weighed solid company earnings against weaker-than-expected economic data and ongoing wrangling in Washington on raising the debt ceiling. "Megacaps are doing well based on strong earnings," said Bill Northey, senior investment director at U.S. Bancorp in Helena, Montana. The Dow Jones Industrial Average (.DJI) fell 42.01 points, or 0.13%, to 33,488.82, and the S&P 500 (.SPX) gained 8.73 points, or 0.21%, to 4,080.36. The U.S. dollar softened against a basket of major world currencies as the previous session's flight to safety faded and the euro gained strengthThe dollar index fell 0.46%, with the euro up 0.68% to $1.1047. Crude prices extended their losses as weak economic data further fueled fears of an economic downturn.

The Swedish crown weakened sharply after the country's central bank was less hawkish than expected, while the euro rebounded 0.65% from losses on Tuesday when jitters over U.S. regional banks buoyed the safe-haven dollar. But the market expects further rate hikes from the European Central Bank, a difference with the Fed that is driving currency moves. The euro rose 1.05% against the crown to a high of 11.426, set for its biggest one-day gain since early March. Sterling was last trading at $1.2462, up 0.44% on the day, while the yen strengthened 0.28% at 133.34 per dollar. Investor attention will firmly be on the slate of central bank meetings in the next few weeks with the Bank of Japan, under the new Governor Kazuo Ueda, holding its policy meeting later this week.

☆ U.S. goods trade deficit narrows sharply in March; retail inventories rise
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +1 min

WASHINGTON, April 26 (Reuters) - The U.S. trade deficit in goods narrowed sharply in March as exports surged and imports declined, which augurs well for economic growth in the first quarter. The goods trade deficit contracted 8.1% last month to $84.6 billion, the Commerce Department said on Wednesday. Exports of goods increased $4.9 billion to $172.7 billion. Goods imports fell $2.5 billion to $257.3 billion, pulled down by decreases in industrial supplies, capital goods and other goods. Retail inventories increased 0.7% after rising 0.3% in the prior month.

☆ U.S. core capital goods orders and shipments drop in March
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +2 min

Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, dropped 0.4% last month, the Commerce Department said on Wednesday. Data for February was revised down to show these so-called core capital goods orders falling 0.7% instead of dipping 0.1% as previously reported. Economists polled by Reuters had forecast core capital goods orders slipping 0.1%. Shipments of core capital goods decreased 0.4% in March after falling 0.4% in February. Core capital goods shipments are used to calculate equipment spending in the gross domestic product measurement.

☆ US core capital goods orders fall; goods trade deficit narrows
▼ + stars: | 2023-04-26 | by ( Lucia Mutikani | ) www.reuters.com time to read: +5 min

SummarySummary Companies Core capital goods orders fall 0.4% in MarchShipments of core capital goods drop 0.4%Goods trade deficit narrows 8.1%WASHINGTON, April 26 (Reuters) - New orders for key U.S.-manufactured capital goods fell more than expected in March and shipments declined, suggesting that business spending on equipment likely remained a drag on economic growth in the first quarter. Data for February was revised down to show a 0.7% drop in these so-called core capital goods orders instead of the previously reported 0.1% dip. Economists polled by Reuters had forecast core capital goods orders would slip 0.1%. Shipments of core capital goods decreased 0.4% in March after falling by a similar margin in February. Goods imports fell $2.5 billion to $257.3 billion, pulled down by decreases in industrial supplies, capital goods and other goods.

Search resuls for: "Capital Goods"

25 mentions found