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Gold subdued as investors focus on U.S. inflation data
  + stars: | 2024-08-12 | by ( ) www.cnbc.com   time to read: +1 min
Gold prices struggled for momentum on Monday as investors looked forward to a key inflation report that could shed more light on the U.S. central bank's next policy move. Spot gold eased 0.13% to $2,427.86 per ounce by 0352 GMT, trading in a narrow $10 price range. The U.S. consumer price index data, due on Wednesday, is expected to show that headline and core prices rose 0.2% month-on-month. "Further inflation progress reflected in the upcoming CPI data could see gold eye for a retest of its all-time high once more," said IG market strategist Yeap Jun Rong. Among other metals, spot silver fell 0.3% to $27.36 per ounce, platinum shed 0.47% to $917.83 and palladium fell 0.2% to $903.48.
Persons: Ilya Spivak, Yeap Jun Rong, Michelle Bowman Organizations: Metals, U.S, Federal, Hamas Locations: Krasnoyarsk, Russia, bank's, U.S, Gaza
LONDON — European stocks are expected to rally at the start of the new trading week, with global markets keeping a close eye on U.S. inflation data out Wednesday. European markets are set to follow in the footsteps of their counterparts in Asia-Pacific, where markets were mostly higher overnight. The rally comes after global stock markets see-sawed last week with steep sell-offs followed by a sharp rebound. U.S. stock futures were lower as investors awaited key inflation data due later this week. In focus is the U.S. producer price index report for July, out Tuesday, followed by the country's latest consumer price index data on Wednesday, with investors looking for signs that price growth is stabilizing.
Persons: Germany's DAX Organizations: CAC, IG Locations: Asia, Pacific, U.S
Bitcoin dropped on Monday amid the global market meltdown. Crypto has not been spared the carnage as traders eye a growing risk of a US recession. The sell-off in crypto comes as risk assets plunge in a global market rout caused by worries over the state of the US economy. Some market observers have said that the historic market rout could prompt an emergency rate cut from the central bank in the next week. Japan's Nikkei 225 index dropped 12% early Monday in its worst single-day decline since 1987, and markets in South Korea and Europe also plunged.
Persons: Bitcoin, Crypto, , Gracy Chen Organizations: Service, Federal Reserve, Fed, Japan's Nikkei, Bank of America Locations: South Korea, Europe
There are cracks forming in the US jobs market
  + stars: | 2024-08-02 | by ( Alicia Wallace | ) edition.cnn.com   time to read: +9 min
CNN —The pandemic threw the US job market into chaos, but four years later, things finally seem to be back to normal. Most indicators support the idea that the labor market is no longer overheated and could easily maintain a new normal of steady, but slower growth. The unemployment rate is expected to hold steady at 4.1%, according to FactSet consensus estimates. “This is a labor market that’s otherwise moderated,” Nick Bunker, director of North American economic research at Indeed, told CNN. The same goes for the prime-age labor force participation rate, which at 83.7% also is the highest in 23 years.
Persons: hasn’t, Jerome Powell, Nick Bunker, Powell, Nancy Vanden Houten, , , , , Madhavi Bokil, Indeed’s Bunker, Bunker, ” Elise Gould, ” Bunker, “ It’s, Julia Pollak, ” Pollak, can’t Organizations: CNN, Federal, of Labor, Challenger, Economic Policy Institute, Locations: Oxford
Top view of Seoul in the morning in autumn 2016. Asia-Pacific markets largely rose on Thursday, after comments from U.S. Federal Reserve Chair Jerome Powell indicated that a rate cut could come in September if inflation data remains "encouraging." This comes after the Fed's Federal Open Market Committee meeting concluded Wednesday, where it opted to hold the federal funds rate at its current level of 5.25% to 5.5%. Powell cautioned that a rate cut is not guaranteed, though he also seemed to rule out a 50-basis-point reduction. "I don't want to be really specific about what we're going to do, but that's not something we're thinking about right now," he said.
Persons: Jerome Powell, Powell Organizations: U.S . Federal, Investors Locations: Seoul, Asia, Pacific, U.S, China, Japan, South Korea
Over the past couple of weeks, energy stocks have outperformed as investors have moved away from technology, consumer discretionary and, well, everything else. I'll breaking down my market view and then describe a possible trade on a big energy stock into earnings. Several energy companies, including the three largest US-based integrated oil companies, report earnings this week. Exxon is up slightly this week as oil inches higher on Middle East tensions. XOM YTD mountain Exxon, year-to-date Crude prices and energy stocks are, technically, mixed bags.
Persons: I've, Brent, that's Organizations: Exxon Mobil, Chevron, Exxon, CNBC, NBC UNIVERSAL
CNN —The pandemic threw the US job market into chaos, but four years later, things finally seem to be back to normal. Most indicators support the idea that the labor market is no longer overheated and could easily maintain a new normal of steady, but slower growth. “This is a labor market that’s otherwise moderated,” Nick Bunker, director of North American economic research at Indeed, told CNN. Labor force participation/employment to population ratio: These metrics are key reasons why Bunker and others believe the labor market remains in good shape. The same goes for the prime-age labor force participation rate, which at 83.7% also is the highest in 23 years.
Persons: hasn’t, Jerome Powell, Nick Bunker, Powell, Nancy Vanden Houten, , , , , Madhavi Bokil, Indeed’s Bunker, Bunker, ” Elise Gould, ” Bunker, “ It’s, Julia Pollak, ” Pollak, can’t Organizations: CNN, Federal, of Labor, Challenger, Labor, Economic Policy Institute, Locations: Oxford
Oil futures clawed back some losses on Wednesday, recovering from 7-week lows as geopolitical tensions rose after Israel retaliated against an attack by Hezbollah, although prices remained under pressure from concerns about demand in China. Oil futures clawed back some losses on Wednesday, recovering from 7-week lows as geopolitical tensions rose after Israel retaliated against an attack by Hezbollah, although prices remained under pressure from concerns about demand in China. U.S. West Texas Intermediate crude futures rose 52 cents, or 0.7%, to $75.25 a barrel. "While (WTI) crude oil remains below the 200-day moving average at $78.66, downside risks remain towards trendline support in the $74.20/00 area," Sycamore said, adding that a sustained break below $74 would open up a move towards $70. Slowing fuel demand in China, the world's largest crude oil importer and the biggest contributor to global demand growth, is also weighing on oil markets.
Persons: Israel, Brent, WTI, Hezbollah's, Tony Sycamore, Sycamore Organizations: Brent, . West Texas, Saturday's, U.S, UN, Organization of, Petroleum, Reuters Locations: China, Beirut, Israel, Gaza, OPEC, Russia
Swiss SIX exchange says trading halted due to technical issues
  + stars: | 2024-07-31 | by ( ) www.cnbc.com   time to read: 1 min
Four Chinese companies raised about $1.5 billion in July by issuing shares on the Six Swiss Exchange via a new China stock connect program. Switzerland's stock exchange SIX said trading had been halted on Wednesday morning across all products until further notice due to technical problems. The Swiss stock exchange is home to companies including Nestle , Roche and UBS . "Market data and index data is not being disseminated at the moment and we are investigating the cause and trying to solve," a spokesperson at SIX told Reuters. "Trading was not affected, but we had to halt trading in Switzerland due to equal treatment of market participants."
Organizations: Six Swiss, Nestle, Roche, UBS, SIX, Reuters Locations: China, Swiss, Switzerland
Yen braces for BOJ decision with risk events aplenty
  + stars: | 2024-07-31 | by ( ) www.cnbc.com   time to read: +4 min
That is followed by inflation readings in France and the wider euro zone later in the day, alongside the Federal Reserve's policy decision, which takes center stage. With plenty of risk events to mark the month-end, currency moves were largely subdued in early Asia trade as investors were hesitant to take on fresh positions. "We anticipate that the BOJ will increase interest rates to around 0.25% at the upper limit." "A rate hike could help stabilize the yen's current levels, whereas the absence of a rate hike may trigger renewed selling pressure driven by carry trades." The yen similarly made headway against other currencies, with the euro falling 0.07% to 165.07 yen and the Australian dollar slipping 0.12% to 99.80 yen.
Persons: Gregor Hirt, Sterling eked, Julien Lafargue Organizations: Bank of Japan, Federal, CIO, Allianz Global Investors, Traders, Barclays Private Bank, New Zealand Locations: Bank, France, Asia
AI models, such as OpenAI's ChatGPT or Anthropic's Claude, are built by running complex algorithms on large amounts of data. Khodjamirian, who also manages the Monopolies and Oligopolies ETF , named four stocks that he sees as potential winners: Moody's , S & P Global , MSCI , and Intuit . Moody's Using Moody's as a prime example, the fund manager highlighted the company's extensive database on credit decisions. MCO 5Y line S & P Global and MSCI Similarly, Khodjamirian sees potential in S & P Global and MSCI due to their vast troves of financial and index data. His thesis rests on the idea that as AI use becomes more widespread, the value of software — the AI models — may diminish.
Persons: Yuri Khodjamirian, Claude, Khodjamirian, CNBC's, Moody's, they're, Warren Buffett's Berkshire Hathaway, MCO, Meta, Warren Buffett's Organizations: Tema ETF's, P, Intuit, Facebook, Microsoft Locations: Tema, Moody's
But US consumers aren’t only taking a financial hit from this summer’s extreme heat by way of their electricity bills. Shoppers could soon have to pay much higher prices for fruit and vegetables as farmers shoulder higher growing costs from the heat, a reversal of a trend seen over the past year with the cost of fruits and vegetables dropping by 1%, according to June Consumer Price Index data. For the rest of this summer, consumers aren’t likely to see markedly higher prices for seasonal fruits like blueberries because contracts with distributors and retailers tend to be worked out in advance, he said. Climate change, he said, is causing his business to suffer financially with reduced crop yields. However, the steep costs to make that switch could also contribute to higher prices consumers pay for produce.
Persons: It’s, Tom Avinelis, , Avinelis, Tom Avinelis “, Mohamed bin, Kumaraswamy Ponnambalam, Ponnambalam, coauthors, Henry Gordon, Smith, it’s, Gordon Organizations: New, New York CNN, Foods, Costco, Safeway, CNN, Atlantic Council, University of Waterloo, University of Artificial Intelligence, , Smart Agriculture, Columbia University Locations: New York, Fresno , California, Willamette, Oregon, California, Ontario, Canada, University, Abu Dhabi, Santa Maria , California
AdvertisementFinding a relatively large apartment to rent without paying a lot each month might be attractive to people who work remotely. That includes El Paso at 1,147 square feet and Lubbock at 1,220 square feet. Still, there were Texas locations with averages under 1,000 square feet, like Dallas at 815 square feet. Meanwhile, most of the large cities in California and Florida had low averages, reflecting their more expensive housing markets. "Notably, Texas has four locations among the top 20 small cities offering the most apartment space for $1,500," the blog post said.
Persons: , Alexandra Both, RentCafe Organizations: Service, South, Business, Midwest Locations: Southeast, Wichita , Kansas, Oklahoma, Texas, El Paso, Lubbock, Dallas, California, Florida, Queens , New York, Newark , New Jersey, Columbus , Georgia, , Texas
Since Harris kicked off her presidential campaign, there’s been a string of good news for the US economy. Harris will have Biden’s mostly strong economy to run on. By June 2021, Biden’s sixth month in office, the nation’s inflation rate jumped to more than 5%. After the Federal Reserve hiked interest rate hikes to a 23-year high to stamp out inflation, the economy — eventually — started to run at a slower pace. The Biden administration canceled $168 billion in student loan debt for 4.8 million Americans.
Persons: Joe Biden, Biden, Kamala Harris, Harris, there’s, Biden’s, , hasn’t, Evan Vucci, Eros Hoagland, Getty, Lina Khan, Jonathan Kanter, Stocks Organizations: CNN, White House, House, Federal, Trump, Biden, Federal Reserve, Gross, Commerce Department, of Labor Statistics, Infrastructure Investment, Jobs, AFL, National Labor Relations Board, United Auto Workers, Union, AP Relief, American, ARPA, Medicare, University of North, Hill, Apple, Google, Federal Trade Commission, Department, FTC, Activision, Big Tech, Justice Department, Fed Locations: Ukraine, Van Buren Township , Michigan, University of North Carolina, America, Valley, Silicon Valley
LONDON — European markets are set to open lower on Wednesday as earnings season ramps up. The U.K.'s FTSE 100 was last expected to open 25 points lower at 8,137, while Germany's DAX was set to shed 76 points to 18,472 and France's CAC 40 was expected to open 54 points lower at 7,540. Italy's MIB index was set to to open 62 points lower at 34,799. Deutsche Bank , UniCredit, BNP Paribas and Banco Santander are among the European banks reporting earnings on Wednesday, alongside Easyjet , Iberdrola and Orange. On the data front, flash purchasing managers' index data is due to be released in the U.K. and the euro zone.
Persons: Germany's DAX, Easyjet Organizations: Citigroup Inc, State Street Corp, Barclays Plc, HSBC Holdings Plc, CAC, Deutsche Bank, BNP, Banco Santander Locations: Wharf, UniCredit, Iberdrola, Orange, Germany
CrowdStrike has issued its own guidance on what affected organizations can do in response to the issue. One example of that has been targeting Spanish-speaking CrowdStrike customers, the company said in a separate blog post. When opened, the file installs malicious software that phones home to a server the hackers control and may use to give additional instructions to the malware. “CrowdStrike Intelligence recommends that organizations ensure they are communicating with CrowdStrike representatives through official channels and they adhere to technical guidance the CrowdStrike support teams have provided,” the company said. “Bad actors routinely try to take advantage of current events, so it’s not all surprising to see them attempting to take advantage of this one,” Callow said.
Persons: CNN —, , CrowdStrike, Kenn White, , cybercriminals, Lina Khan, Azim Khodjibaev, Brett Callow, ” Callow Organizations: CNN, Department of Homeland Security, Infrastructure Security Agency, CrowdStrike Intelligence, Federal Trade Commission, Internal Revenue Service, Social Security Administration, FTC, Cisco, FTI Consulting
As long as inflation continues to slow, mortgage rates should tick down further throughout the remainder of 2024. See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. 15-Year Fixed Mortgage Rates Barely Tick Up (+0.02%)The average 15-year mortgage rate is 5.68%, just two basis points higher than last week. Mortgage Refinance Rates30-Year Fixed Refinance Rates Fall (-0.37%)The average 30-year refinance rate is 7.08%, 37 basis points down from last week. Mortgage rates also rose dramatically in 2023, though they started trending back down toward the end of the year.
Persons: you'll, It's, refinance, they've Organizations: Federal, Zillow, FHA Locations: Chevron
Read previewFormer President Donald Trump said the Federal Reserve should not cut interest rates before the presidential election, according to an interview he did with Bloomberg Businessweek. The Federal Open Market Committee has two interest rate decisions scheduled before the election in July and September. "I think it's past time for them to cut interest rates," Zandi said. During a February interview with Fox News, Trump accused Powell of being "political" and planning interest rate cuts to coincide with the election. "I think he's going to do something to probably help the Democrats, I think, if he lowers interest rates," Trump said, adding that "it looks to me like he's trying to lower interest rates for the sake of maybe getting people elected."
Persons: , Donald Trump, Trump, Jerome Powell, Mark Zandi, Powell, Zandi, Claudia Sahm, Sahm, he's Organizations: Service, Federal Reserve, Bloomberg Businessweek, Business, Democratic, Federal, Reserve, Banking, Housing, Urban Affairs, Fed, New Century Advisors, Fox News, Stanford's Business, Government, Society, Trump, Wall Street
The past few years have solidified single-family rental homes as genuine moneymaking enterprises, not just ho-hum nest eggs. Related storiesWhen everyone was scrambling for their piece of the suburbs during the pandemic, mom-and-pop landlords pounced, using these newfound tools to collect more cash. The company, which estimates only one-fourth of single-family-rental landlords use professional management services, now manages more than 28,000 rentals on behalf of small landlords. As the Wall Street ethos trickles down to small rental owners, it'll be harder and harder to tell them apart. But the gap is narrowing as small rental owners capitalize on the innovations that the institutional class has already embraced.
Persons: Daniel doesn't, Daniel, hasn't, he's, Bryan Smith, , Zers, John Burns, Rick Palacios Jr, Palacios, Jordan Kavana, Rich Ford, you've, Ford, Devin Redmond, doesn't, Philip Garboden, It's, Garboden, Roofstock Organizations: Atlanta, Corporate, Harvard Joint Center for Housing Studies, John Burns Research, Consulting, Ark Homes, Rent, Vesta Ventures, University of Chicago Locations: Zillow, Atlanta, Raleigh, Chattanooga , Tennessee, Grand Rapids , Michigan
Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. If you don't own DuPont stock, Jim Cramer said current prices are a good entry point. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER .
Persons: Jim Cramer, Jerome Powell, we're, Jim, it's, Jim Cramer's Organizations: CNBC, Nasdaq, Federal, Honeywell International, Air, Honeywell, DuPont, Big Tech, NVDA
Why the Fed is stressed about presidential elections
  + stars: | 2024-07-10 | by ( Nicole Goodkind | ) edition.cnn.com   time to read: +9 min
New York CNN —Federal Reserve Chair Jerome Powell sent investors mixed messages on Tuesday during his semiannual testimony to Congress. Powell is stressed about the election: Powell was asked by multiple senators about White House politics, which he dodged. While the Fed head noted that policy decisions are data dependent, “elevated inflation is not the only risk we face,” he said. The September Fed meeting will be “live”: Powell noted multiple times that every Fed policy decision is made “live” using the latest available economic data – in other words, decisions aren’t made in advance. About 75% of investors think the Fed will cut rates, and about 25% think they’ll remain the same.
Persons: Jerome Powell, Powell, , Donald Trump, reappoint Powell, , Joseph Brusuelas, Trump, Gregory Daco, Chris Larkin, Morgan Stanley, Larkin, don’t, aren’t, David Rubenstein, he’ll, Airbnb, Isabelle Chapman, Majlie, Puy Kamp, Audrey Ash, Chris Isidore . Organizations: CNN Business, Bell, New York CNN — Federal, White, , Reserve, RSM, Federal Reserve, US Consumer, Treasury, Fed, Economics, Washington DC, Jackson, CNN, Boeing, Alaska Airlines Locations: New York, Powell, Washington, Alaska
Mortgage rates have been holding steady so far this week, but they could fluctuate on Thursday when the Bureau of Labor Statistics releases June's Consumer Price Index data. If this index shows that inflation slowed last month, rates could ease. As inflation slows and the Federal Reserve is able to start lowering the federal funds rate, mortgage rates are expected to go down. This should remove some of the upward pressure off of mortgage rates and allow them to trend down more substantially. This means your entire monthly mortgage payment, including taxes and insurance, shouldn't exceed 28% of your pre-tax monthly income.
Persons: they're, you'll, Fannie Mae Organizations: Bureau of Labor Statistics, Federal Reserve, Investors, Zillow, Mortgage, Association, Sky Locations: Chevron
As long as inflation continues to slow, mortgage rates should ease throughout the remainder of 2024, improving affordability for hopeful homebuyers. See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. Mortgage Rates for Buying a Home30-Year Fixed Mortgage Rates Decrease Slightly (-0.09%)The current average 30-year fixed mortgage rate is 6.62%, down nine basis points from where it was this time last week, according to Zillow data. 15-Year Fixed Mortgage Rates Essentially Flat (+0.01%)The average 15-year mortgage rate is 5.99%, just one basis point higher than last week. Mortgage Refinance Rates30-Year Fixed Refinance Rates Increase Slightly (+0.16%)The average 30-year refinance rate is 7.86%, 16 basis points up from last week.
Persons: you'll, It's, refinance Organizations: of Labor Statistics, Federal Reserve, Zillow, FHA Locations: Chevron
In June, 30-year mortgage rates averaged around 6.58%, an 18-basis-point drop from the month before, according to Zillow data. This index is a key measure of inflation, and if it decelerated last month, mortgage rates could inch down in response. As inflation slows and the Federal Reserve is able to start lowering the federal funds rate, mortgage rates are expected to ease. See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's interest rates will affect your monthly payments. 15-Year Fixed Mortgage RatesAverage 15-year mortgage rates inched down to 6.25% last week, according to Freddie Mac data.
Persons: Fannie Mae's, homebuyers, you'll, Freddie Mac, it's Organizations: of Labor Statistics, Federal Reserve, Zillow Locations: Chevron
Stock futures edged lower Sunday night as investors await key inflation data for further clues on the longevity of this year's market rally. S&P futures were down more than 0.1%, while futures tied to the Dow Jones Industrial Average lost 51 points, or 0.1%. Producer price index data will be released Friday. Last week, labor data reflected a slightly cooling labor market, spurring expectations of a rate cut. A slew of major banks, including Citigroup and JPMorgan Chase , will kick off second-quarter earnings season this week.
Persons: Greg Wilensky, Janus Henderson, JPMorgan Chase, Stocks, Dow Organizations: Dow Jones Industrial, Nasdaq, Federal, Traders, Janus, Janus Henderson Investors, Citigroup, JPMorgan, PepsiCo, Delta Air Lines, Nvidia Locations: U.S
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