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Futures got a lift after data showed initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 196,000 for the week ended Feb. 4. The data comes on the heels of a strong January employment report that rattled markets last week. "There are so many companies that are laying off people and that eventually is going to weaken the job market. ET, Dow e-minis were up 213 points, or 0.63%, S&P 500 e-minis were up 33 points, or 0.8%, and Nasdaq 100 e-minis were up 160.5 points, or 1.28%. Ralph Lauren Corp (RL.N) gained 2.4% after beating quarterly revenue expectations on resilient demand for its high-end clothing and accessories.

Investor sentiment was further boosted after data showed initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 196,000 last week, above a forecast of 190,000 claims. The data comes on the heels of a strong January employment report that rattled markets last week. Of more than half of the S&P 500 companies that have reported fourth-quarter earnings so far, 69% have topped estimates, as per Refinitiv data. Advancing issues outnumbered decliners by a 3.03-to-1 ratio on the NYSE and by a 2.17-to-1 ratio on the Nasdaq. The S&P index recorded 14 new 52-week highs and one new low, while the Nasdaq recorded 49 new highs and 20 new lows.

☆ VIEW U.S. job growth accelerates in January, wage gains moderate
▼ + stars: | 2023-02-03 | by ( ) www.reuters.com time to read: +3 min

NEW YORK, Feb 3 (Reuters) - U.S. job growth accelerated sharply in January amid a persistently resilient labor market, but a further moderation in wage gains should give the Federal Reserve some comfort in its fight against inflation. MARKET REACTION:STOCKS: U.S. stock index futures fell sharply after the strong jobs report BONDS: U.S. bond yields rose after the jobs data. If you can do that and keep the labor market strong that's the perfect soft landing the Fed's been looking for." "I'd say that market got ahead of itself betting that the March rate hike would be the last one. Was it seasonal factors or just the strength of the labor market."

U.S. labor costs increased at their slowest pace in a year in the fourth quarter as wage growth slowed, bolstering expectations of the Fed slowing the pace of its interest rate increases. "As the Fed meeting begins today, they'll be looking at every index that could give them a better judgment on inflation and this is one of them," said Peter Cardillo, chief market economist at Spartan Capital Securities LLC. "Labor costs are still high, but this means costs have come down, and that's a key factor for future wage inflation." United Parcel Service (UPS.N) jumped 4% on strong quarterly earnings, boosting the Dow Jones Transport Average index (.DJT). The S&P index recorded four new 52-week highs and no new low, while the Nasdaq recorded 32 new highs and 14 new lows.

Jan 31 (Reuters) - U.S. stock indexes were set to open higher on Tuesday after wage growth data pointed to easing inflation ahead of the Federal Reserve's decision on interest rates. U.S. labor costs increased less than expected last quarter as wage growth slowed, suggesting that the central bank's aggressive approach to taming inflation was taking hold. "Labor costs are still high, but this means costs have come down, and that's a key factor for future wage inflation." The U.S. 10-year Treasury yield fell after the labor costs data, and was last at 3.50% compared to 3.55% on Monday. The world's largest parcel delivery firm United Parcel Service(UPS.N) also added 1.9% on strong quarterly earnings.

☆ Wall Street gains as solid GDP data offsets signs of economic weakness
▼ + stars: | 2023-01-26 | by ( Stephen Culp | ) www.reuters.com time to read: +4 min

[1/2] People stand by the New York Stock Exchange (NYSE) in New York City, U.S., January 26, 2023. Fourth-quarter earnings season has hit full stride, with more than one fourth of the companies in the S&P 500 having reported. Analysts now see aggregate fourth quarter earnings falling 2.7%, worse than the 1.6% year-on-year decline seen on Jan. 1, but an improvement over the 3% annual decline as of Wednesday, per Refinitiv. Among the 11 major sectors of the S&P 500, energy (.SPNY) led the percentage gainers, boosted by rising crude prices due to signs of increasing demand from China. Tesla Inc (TSLA.O) provided the most upside muscle to the S&P 500 and the Nasdaq, its shares jumping 9.4% in the wake of its earnings report.

☆ Instant view: U.S. GDP grows in fourth quarter; weekly jobless claims fall
▼ + stars: | 2023-01-26 | by ( ) www.reuters.com time to read: +6 min

Gross domestic product increased at a 2.9% annualized rate last quarter, the Commerce Department said in its advance fourth-quarter GDP growth estimate on Thursday. The swing in inventories was the wildcard and that added 1.46 percentage points to GDP growth. "If you look at the GDP data it does seem like we left 2022 with a little bit more momentum than people had thought and with consumption we're also in a pretty good spot. “We have a GDP number that is well above trend, and the previous quarter’s number was well above trend. That suggests higher rates were starting to take a bigger toll, and sets the stage for weaker growth in the first quarter of this year."

Industrial conglomerate 3M Co (MMM.N) fell 4.7%, leading the decliners among Dow components in premarket trading, after reporting a fall in quarterly profit. General Electric Co (GE.N) rose 2.2% as it topped quarterly profit estimates, boosted by strong demand for its engines and after-market services. Wall Street's main indexes started the earnings-heavy week on solid ground amid renewed appetite for growth stocks following a battering last year. Shares of Microsoft Corp (MSFT.O), which is scheduled to report quarterly earnings after the bell, were flat. Big Tech earnings could also determine whether renewed enthusiasm for growth stocks will be sustained.

☆ Morgan Stanley profit beats on strength in trading business
▼ + stars: | 2023-01-17 | by ( ) www.reuters.com time to read: +3 min

Jan 17 (Reuters) - Morgan Stanley (MS.N) reported a smaller-than-expected 41% drop in fourth-quarter profit on Tuesday as the bank's trading business got a boost from market volatility, offsetting the hit from sluggish dealmaking. Revenue from Morgan Stanley's investment banking business fell 49% to $1.25 billion in the fourth quarter, with revenue declines across the bank's advisory, equity and fixed income segments. The investment banking business slowdown weighed on the company's net revenue, pulling it down 12% to $12.7 billion. Morgan Stanley wraps up a mixed fourth-quarter earnings for the big U.S. banks. On an adjusted basis, Morgan Stanley earned $1.31 per diluted share, the bank said.

Goldman Sachs Group Inc (GS.N) fell 3.5% after the bank reported a bigger-than-expected drop in quarterly profit, weighing the most on the Dow Jones Industrial Average (.DJI). "Widely expected to be awful, Goldman Sachs' quarterly results were even more miserable than anticipated," said Octavio Marenzi, chief executive at consultancy Opimas. The S&P 500 energy (.SPNY) and consumer staples (.SPLRCS) sectors were up about 0.6% each, while financial stocks (.SPSY) fell 0.6%. Earnings from Goldman Sachs and Morgan Stanley wrap up a mixed reporting season for big banks, most of which have put aside rainy-day funds to prepare for a looming recession. Analysts expect year-over-year earnings from S&P 500 companies to decline 2.4% for the quarter, according to Refinitiv data.

☆ Wall St ends up as data suggests inflation may be on downward trend
▼ + stars: | 2023-01-12 | by ( Caroline Valetkevitch | ) www.reuters.com time to read: +4 min

Friday brings results from a number of big U.S. banks, kicking off the start of the fourth-quarter earnings season for S&P 500 companies. Microsoft (MSFT.O) shares rose 1.2%, providing the biggest boost to the S&P 500 and Nasdaq, while energy shares also were higher along with oil prices. The S&P 500 is now up 3.7% for the year so far. Also, overall S&P 500 earnings are expected to have declined year-over-year in the fourth quarter, according to IBES data from Refinitiv, which would be the first quarterly U.S. earnings decline since 2020. The S&P 500 posted 14 new 52-week highs and one new low; the Nasdaq Composite recorded 96 new highs and 16 new lows.

☆ Wall St gains; data suggests inflation may be on downward trend
▼ + stars: | 2023-01-12 | by ( Caroline Valetkevitch | ) www.reuters.com time to read: +3 min

The Labor Department's report showed U.S. consumer prices grew 6.5% on an annual basis in December, in line with expectations. Microsoft (MSFT.O) shares were providing the biggest boost to the S&P 500, energy shares also were higher along with oil prices. Friday brings results from a number of big U.S. banks, kicking off the start of the fourth-quarter earnings season for S&P 500 companies. Overall S&P 500 earnings are expected to have declined year-over-year in the fourth quarter, according to IBES data from Refinitiv, which would be the first quarterly U.S. earnings decline since 2020. The S&P 500 posted 14 new 52-week highs and one new low; the Nasdaq Composite recorded 80 new highs and 16 new lows.

☆ Stocks climb, dollar falls after U.S. inflation data
▼ + stars: | 2023-01-12 | by ( Chuck Mikolajczak | ) www.reuters.com time to read: +3 min

Still, a separate reading on the labor market showed weekly initial jobless claims came in at 205,000, below expectations of 215,000. Many market participants are looking for signs of weakness in the labor market as a key sign of slowing inflation. On Wall Street, equities were choppy after the data, with the S&P 500 falling as much as 0.8% before rebounding. Richmond Federal Reserve president Tom Barkin echoed the sentiment about the data and said it allowed the Fed to "steer more deliberately". Crude prices rose in the wake of the data, getting an additional boost from optimism over China's emergence from its COVID-19 restrictions creating additional demand.

The Fed's aggressive monetary policy tightening to curb decades-high inflation hammered U.S. equities in 2022, with the three main indexes logging their steepest annual declines since 2008. Fed Governor Michelle Bowman said on Tuesday the U.S. central bank will have to raise interest rates further to combat high inflation. Healthcare stocks (.SPXHC) rose 0.5% and were also a major boost to the benchmark S&P 500 index. Advancing issues outnumbered decliners for a 1.17-to-1 ratio on the NYSE and a 1.62-to-1 ratio on the Nasdaq. The S&P index recorded one new 52-week high and no new low, while the Nasdaq recorded 37 new highs and 20 new lows.

SummarySummary Companies Powell steers clear of monetary policy outlookMicrosoft up on report of investment talksBoeing down on report of rating downgradeIndexes up: Dow 0.33%, S&P 0.42%, Nasdaq 0.70%Jan 10 (Reuters) - Wall Street's main indexes edged higher on Tuesday, boosted by gains in Microsoft and Amazon, as investors assessed commentary from Federal Reserve Chair Jerome Powell that steered clear of the monetary policy outlook. Microsoft Corp (MSFT.O) rose 1.2% after a report stated the software company was in talks to invest $10 bln in ChatGPT creator OpenAI. The U.S. central bank's independence from political influence is central to its ability to battle inflation, Powell said on Tuesday. The Fed's aggressive monetary policy tightening to curb decades-high inflation hammered U.S. equities in 2022, with the three main indexes logging their steepest annual declines since 2008. The S&P index recorded 1 new 52-week high and no new lows, while the Nasdaq recorded 27 new highs and 14 new lows.

All the major S&P 500 sectoral indexes rose, with consumer discretionary (.SPLRCD) and information technology (.SPLRCT) up 1.8% and 1.9%, respectively. The U.S. Labor Department's report showed initial claims for unemployment benefits rose 9,000 to a seasonally adjusted 225,000 for the week ended Dec. 24. The report hinted at some softening in an otherwise tight labor market, bolstering hopes that the U.S. central bank would dial down its aggressive monetary policy stance. "Signs of the job market beginning to weaken is certainly apparent," said Peter Cardillo, chief market economist, Spartan Capital Securities LLC. A strong labor market and resilient American economy have fueled worries that interest rates could stay higher for longer even though easing inflationary pressures keep alive hopes of smaller increases.

Initial claims for unemployment benefits rose 9,000 to a seasonally adjusted 225,000 for the week ended Dec. 24, the Labor Department said. The report suggested that the rapid interest rate hikes were starting to take a toll on the labor market, bolstering hopes that the U.S. central bank would dial down its aggressive stance. "Signs of the job market beginning to weaken is certainly apparent," said Peter Cardillo, chief market economist, Spartan Capital Securities LLC. ET, Dow e-minis were up 172 points, or 0.52%, S&P 500 e-minis were up 29 points, or 0.76%, and Nasdaq 100 e-minis were up 116.25 points, or 1.08%. Reporting by Ankika Biswas and Amruta Khandekar in Bengaluru; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

☆ November PPI a bit hotter than expected
▼ + stars: | 2022-12-09 | by ( ) www.reuters.com time to read: +5 min

Data for October was revised higher to show the PPI gaining 0.3% instead of 0.2% as previously reported. "I don’t believe this changes anything about what the Fed was going to do on Wednesday in terms of raising rates by 50 basis points." The strength of the data was broad based with ex-food, energy, and trade also topping estimates at 0.3% MoM vs. 0.1% MoM anticipated in an acceleration from last month's 0.2% MoM print. If there’s any positive signs it’s the yearly decline.”“Bottom line is inflation is in a down-trend but month-on-month it’s hotter than expected. Then, in March I expect it to be a 25 basis points after which they’ll hold to see how all these rate hikes have played out unless something dramatic happens.

Broadly, indexes were suffering as data showed U.S. services industry activity unexpectedly picked up in November, with employment rebounding, offering more evidence of underlying momentum in the economy. In other economic data this week, investors will also monitor weekly jobless claims, producer prices and the University of Michigan's consumer sentiment survey for more clues on the health of the U.S. economy. It was weighed by U.S. natural gas futures slumping more than 8% on Monday, as the outlook dimmed due to forecasts for milder weather and the delayed restart of the Freeport liquefied natural gas (LNG) export plant. EQT Corp (EQT.N), one of the largest U.S. natural gas producers, led declines with a 7.1% drop. Although bank profits are typically boosted by rising interest rates, they are also sensitive to concerns about bad loans or slowing loan growth amid an economic downturn.

Data showed U.S. services industry activity unexpectedly picked up in November, with employment rebounding, offering more evidence of underlying momentum in the economy. "Right now it's more of an issue of watching the Fed and they are going to need to tighten and longer than needed." Investors see an 89% chance that the U.S. central bank will increase interest rates by 50 basis points next week, with the rates peaking in May 2023. All major Wall Street indexes notched a second straight week of gains last week, with the S&P 500 rising 1.13%, the Dow gaining 0.24% and the Nasdaq climbing 2.1%. The S&P index recorded four new 52-week highs and one new low, while the Nasdaq recorded 54 new highs and 39 new lows.

☆ 'Substantial majority" of Fed officials see rate hikes slowing 'soon,' -minutes
▼ + stars: | 2022-11-23 | by ( Gibran Naiyyar Peshimam | ) www.reuters.com time to read: +1 min

The key point was the officials said the terminal rate is likely to be higher than previously expected, but the market already knows that. "There may be a little bit of a surprise that the majority supports slower rate hikes ahead...As you can see the markets have gained a little bit of upward momentum since the minutes were released." MICHAEL JAMES, MANAGING DIRECTOR OF EQUITY TRADING, WEDBUSH SECURITIES, LOS ANGELES"Multiple Fed governors indicated a slowing in the pace of rate hikes, which is pretty much exactly what equity markets needed to hear. Merely the fact that they're going to be slowing the pace confirms what the majority of people have been hoping to see. "What equity markets needed to see for the recent strength to continue was what we got from the minutes."

The comments follow a softer-than-expected inflation report last week, which had buoyed hopes that the Fed could scale back its hefty interest rate hikes and helped drive a euphoric market rally. The S&P 500 in the previous session logged its biggest weekly percentage gain in about five months, while the tech-heavy Nasdaq (.IXIC) notched its best week since March. "The market is expecting the Fed to continue its hawkish rhetoric on rates. ET, the S&P 500 (.SPX) was down 17.25 points, or 0.43%, at 3,975.68, and the Nasdaq Composite (.IXIC) was down 115.13 points, or 1.02%, at 11,208.20. The S&P 500 information technology sector (.SPLRCT) was down 1.2% and among the leading sectoral decliners on the benchmark index.

The comments follow a softer-than-expected inflation report last week, which had buoyed hopes that price pressures were easing and the Fed could scale back its hefty interest rate hikes. "The market is expecting the Fed to continue its hawkish rhetoric on rates," said Peter Cardillo, chief market economist at Spartan Capital Securities. Once they (Fed) raise rates at 50 (bps), there's a possibility that they might indicate slower rates." Traders now expect the Fed to hike interest rates in December by a half point, and expect terminal rate in the range of 4.75%-5.0% next year. ET, Dow e-minis were down 50 points, or 0.15%, S&P 500 e-minis were down 11.5 points, or 0.29%, and Nasdaq 100 e-minis were down 62 points, or 0.52%.

☆ Wall Street surges, dollar plunges as inflation data boosts Fed slowdown hopes
▼ + stars: | 2022-11-10 | by ( Stephen Culp | Margaryta Chornokondratenko | ) www.reuters.com time to read: +4 min

"This is welcome news," Cardillo added, suggesting that "there's a possibility the Fed raises interest rates by 50 basis points in December and then takes a pause." Signs that decades-high inflation growth is beginning to ebb sent U.S. Treasury yields lower, supporting expectations that the Fed could ease its foot from the rate-hike accelerator. The dollar lost ground against a basket of world currencies as sunny economic data lured investors away from the safe-haven greenback. The dollar index fell 1.96%, with the euro up 1.55% to $1.0166. Gold prices jumped as the dollar dropped, reflecting hopes that the inflation data could rein in the Fed's hawkish stance.

In the Treasuries market the yield on the 2-year note , the maturity most sensitive to Fed rate expectations, dropped by nearly 20 basis points, the most in one day since June. And traders in futures contracts tied to the Fed's benchmark rate show traders now expect the blistering pace of policy tightening to slow next month. Rate futures contracts are now pricing in a top policy rate in the 4.75%-5% range next March -- lower than the 5%-plus range seen before the report -- and interest-rate cuts in the second half of the year. Continued high inflation for services, possibly reflecting labor markets that remain tight, could prevent any quick resolution of the overall inflation problem. Speaking after the report, Philadelphia Fed president Patrick Harker indicated his support for slowing rate hikes and then stopping, perhaps even earlier than markets are now pricing in.

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