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Eric Baradat | AFP | Getty ImagesA hotter-than-expected consumer price index reading rattled markets Wednesday, but markets are buzzing about an even more specific prices gauge contained within the data — the so-called supercore inflation reading. Along with the overall inflation measure, economists also look at the core CPI, which excludes volatile food and energy prices, to find the true trend. The supercore gauge, which also excludes shelter and rent costs from its services reading, takes it even a step further. Today, he added, the picture is more complicated because some of the most stubborn components of services inflation are household necessities like car and housing insurance as well as property taxes. Sticky inflation problem
Persons: Jerome Powell, Eric Baradat, Tom Fitzpatrick, Fitzpatrick, Dow Jones, Stephen Stanley, Ian Lyngen, we're Organizations: AFP, Getty, O'Brien & Associates, Dow, Santander U.S, Wall, CPI, BMO Capital Markets, Fed Locations: Washington ,
Dollar firm, yen under watch ahead of key US CPI release
  + stars: | 2024-04-10 | by ( ) www.cnbc.com   time to read: +3 min
The Japanese yen and U.S. dollar on display in Yichang, Hubei province, Nov 13, 2023. The inflation data follows a strong jobs report last Friday that blew past forecasts, raising questions on how soon and how much the central bank will cut rates this year. On the yen, Wednesday's CPI data will be "a big test for Japanese authorities," Kong added. The U.S. dollar index , which measures the greenback against six rivals, held firm at 104.12. The kiwi climbed as high as $0.6077 versus the U.S. dollar, its strongest since March 21, before flattening at $0.60595.
Persons: Carol Kong, Kong, Kazuo Ueda, Sterling, bitcoin Organizations: U.S, Reserve Bank of New, Commonwealth Bank of Australia, Bank of Japan, Reserve Bank of New Zealand, U.S ., Treasury, Traders, European Central Bank, ECB Locations: Yichang, Hubei province, Reserve Bank of New Zealand, U.S, China
While debate rages on about when the Federal Reserve might start cutting interest rates, biotech industry analysts are making the case that the argument for stocks in the sector is growing. Last week, Morgan Stanley analysts noted that it is the months leading up to an initial rate cut when biotech stocks outperform. Morgan Stanley also believes the case for biotech stocks is further reinforced by the financing environment and the outlook for mergers and acquisitions as well as upcoming innovation. The case for innovation Morgan Stanley also favors owning biotech stocks that have a strong drug platform even if the key catalyst of clinical trial data and FDA approvals are farther out. Rhythm ranks among the stocks rated overweight that Morgan Stanley favors in this category.
Persons: Morgan Stanley, Needham, Joseph Stringer, dealmaking, Stringer, erosive, it's, Phathom, GERD, LSEG, Merck, — CNBC's Michael Bloom Organizations: Federal Reserve, Nasdaq, Oncology, Immunology, Phathom Pharmaceutical, Pharmaceuticals, Phathom Pharmaceuticals, LSEG, Drug, Bristol Myers Squibb, Pfizer, Intellia Therapeutics, Rocket Pharmaceuticals Locations: New Jersey
Why gold prices are at record highs
  + stars: | 2024-04-09 | by ( John Towfighi | ) edition.cnn.com   time to read: +6 min
Central banks see gold as a long-term store of value and a safe haven during times of economic and international turmoil. When interest rates fall, gold prices tend to rise, as bullion becomes more appealing than income-paying assets like bonds. Investors also regard gold as a hedge against inflation, betting bullion will retain its value when prices rise. The People’s Bank of China bought gold for the 17th straight month in March, adding 160,000 ounces to bring reserves to 72.74 million troy ounces of gold, according to Reuters. Higher oil prices are likely to stoke concerns over inflation, boosting gold prices, according to the UBS research note.
Persons: China —, Ulf Lindahl, Lindahl, Morgan, JP Morgan, Janet Yellen’s, Yellen, Mark Zandi, Jerome Powell, Wells, Richard Galanti, It’s Organizations: New, New York CNN, Investors, Federal Reserve, China, People’s Bank of China, Reuters, UBS, Research Associates, Moody’s, of Commerce, Costco Locations: New York, China, India, Turkey, Central, Wells Fargo
Scott Olson | Getty ImagesA closely watched Labor Department report due Wednesday is expected to show that not much progress is being made in the battle to bring down inflation. To be sure, inflation has come down dramatically from its peak above 9% in June 2022. That showed headline inflation running at 2.5% and the core rate at 2.8% in February. For their part, markets have grown nervous about the state of inflation and how it will affect rate policy. "I don't see a whole lot here that is going to move things magically the way they want to go," North said.
Persons: Scott Olson, We're, Dan North, North, they've Organizations: Getty, Labor Department, Federal Reserve, Allianz Trade North America, Fed, Commerce, PCE Locations: Chicago , Illinois
Hedge funds are dumping stocks at the fastest pace in three months as what's often called " the smart money " stepped up bearish wagers against equities amid the recent pullback. The professionals sold global stocks on a net basis for a second straight week last week, driven almost entirely by short sales, according to Goldman Sachs' prime brokerage data. It marked the biggest selling week for hedge funds since mid-January, the data showed. Its hedge fund clients sold stocks for a fifth consecutive week last week, exiting shares across small-, mid- and large-cap companies. The S & P 500 declined nearly 1%, its biggest weekly loss since early January, although the equity benchmark is still only 1.7% below its record high.
Persons: Goldman Sachs, David Bahnsen, Goldman, Jean Boivin, — CNBC's Michael Bloom Organizations: Bank of, Dow, Bahnsen Group, P Retail, Traders, Fed, BlackRock Investment Institute Locations: U.S
"While investors seem to be anxiously awaiting easing monetary policy, the current environment does not quite scream 'rate cuts!'" That sentiment has manifested itself lately in market pricing. That same day, the Labor Department will release the CPI report, which is expected to show the headline inflation rate rising 3.4% in March on a year-over-year basis, per Dow Jones. This is nonetheless "the right time to cut rates," wrote David Kelly, chief global strategist at JPMorgan Asset Management. "What has underpinned this market is the promise of a series of rate cuts including March, and now it has dwindled to just a few rate cuts.
Persons: Glenmede, Dow Jones, David Kelly, Kelly, Nicholas Colas, Colas, Ed Yardeni, nonfarm, Quincy Krosby, Krosby Organizations: Federal Reserve, Investors, Labor Department, Asset Management, Fed, DataTrek, Yardeni, LPL
Federal Reserve Bank Chair Jerome Powell speaks during the Stanford Business, Government and Society Forum at Stanford University on April 03, 2024 in Stanford, California. Justin Sullivan | Getty ImagesFederal Reserve Chairman Jerome Powell said Wednesday it will take a while for policymakers to evaluate the current state of inflation, keeping the timing of potential interest rate cuts uncertain. "We do not expect that it will be appropriate to lower our policy rate until we have greater confidence that inflation is moving sustainably down toward 2 percent," he added. "Recent readings on both job gains and inflation have come in higher than expected," Powell said. The uncertainty about rates has caused some consternation in markets, with stocks falling sharply earlier this week as Treasury yields moved higher.
Persons: Jerome Powell, Justin Sullivan, Powell, Raphael Bostic, Mary Daly, Cleveland's Loretta Mester Organizations: Bank, Stanford Business, Government, Society, Stanford University, Getty, Federal, Market, Atlanta Fed, CNBC, San Francisco Fed, Group Locations: Stanford , California
Gold prices on Tuesday hovered below record highs hit in the previous session, as the U.S. dollar and Treasury yields held firm after strong U.S. data flagged doubts on whether the Federal Reserve would deliver three interest rate cuts this year. Spot gold was unchanged at $2,250.79 per ounce, as of 0415 GMT, holding below an all-time high of $2,265.49 hit on Monday. "Gold notched up a new record price, though with that high watermark also came some overbought conditions, which has resulted in a mild pullback. Traders pared bets of a June interest rate cut to 63% after the data, according to the CME Group's FedWatch Tool. Gold tends to gain when interest rates are cut as it reduces the opportunity cost of holding bullion.
Persons: Tim Waterer, Jerome Powell, Waterer Organizations: U.S ., Treasury, Federal Reserve, KCM Trade, U.S Locations: .
If the Federal Reserve follows through on plans to lower interest rates it could lead to a stock market bubble, in the view of Neuberger Berman portfolio manager Steve Eisman. The central bank last month penciled in three potential quarter percentage point rate cuts by the end of 2023, along with multiple other cuts coming in future years. I personally think there should be no Fed cuts this year," he said during an interview on CNBC's " Squawk Box ." My actual fear is that if the Fed were actually to cut rates, the market becomes bubblicious and then we have a real problem. Markets in fact have grown nervous this week as hopes have waned for rate cuts.
Persons: Neuberger Berman, Steve Eisman, Jerome Powell, Eisman, Powell Organizations: Federal, Institute for Supply Management, Stanford Business, Government, Society, Labor Department, Fed
Homebuilding stocks have reached new highs this year, and State Street's Matthew Bartolini sees more upside in store when the Federal Reserve begins cutting rates. "The thesis just comes down to economic resilience that is fueled by a strong labor market and a healthy consumer," said the managing director and head of SPDR Americas research. XHB YTD mountain Homebuilding ETF has surged more than 15% this year. The SPDR S & P Homebuilders ETF (XHB) has rallied nearly 17% year to date and about 70% over the past year. Homebuilding stocks have also benefited from a resilient economy that is led by a healthy labor market, and they stand to gain even more in a Federal Reserve rate-cutting cycle.
Persons: Matthew Bartolini, Bartolini Organizations: State, Federal Reserve, SPDR, Sonoma, Products, Carlisle Companies, Builders, Fed Locations: SPDR Americas, Williams
While the Fed looks at both measures when making policy, it considers core to be a better gauge of long-term inflation pressures. The Fed targets 2% annual inflation; core PCE inflation hasn't been below that level in three years. Inflation pressures came more from the goods side, which rose 0.5%, compared to the 0.3% increase for services. That countered the trend over the past year, during which services rose 3.8% while goods actually fell by 0.2%. Along with the inflation increase, consumer spending shot up 0.8% on the month, well ahead of the 0.5% estimate, possibly indicating additional inflation pressures.
Persons: Dow Jones, Victoria Greene Organizations: Federal Reserve, Commerce Department, Fed, G Squared, Wealth, CNBC, PCE, Federal, Market
Gold holds steady as traders await U.S. data for more Fed cues
  + stars: | 2024-03-28 | by ( ) www.cnbc.com   time to read: +2 min
Gold prices steadied on Thursday as investors digested comments from Federal Reserve Governor Christopher Waller on interest rate cuts and looked forward to more U.S. economic data for policy clues. Gold prices steadied on Thursday as investors digested comments from Federal Reserve Governor Christopher Waller on interest rate cuts and looked forward to more U.S. economic data for policy clues. Fed Governor Waller on Wednesday said recent disappointing inflation data affirms the case for the U.S. central bank holding off on cutting its short-term interest rate target. Traders are currently pricing in a 62% probability the Fed will begin cutting rates in June, according to the CME Group's FedWatch Tool. Lower interest rates reduce the opportunity cost of holding bullion.
Persons: Christopher Waller, Ilya Spivak, Fed Governor Waller Organizations: Federal Reserve, Fed, U.S, Traders Locations: Ukraine
The 2-year Treasury yield was last up by 6 basis points at 4.63%. The yield on the 10-year Treasury had risen 1 basis point to 4.21%. The 2-year Treasury yield ticked higher Thursday as investors considered the path ahead for interest rates following comments from a Federal Reserve official and prepared for key inflation data. Investors weighed the outlook for monetary policy and looked ahead to key economic data as uncertainty around when and how often interest rates will be cut this year persists. Federal Reserve Governor Christopher Waller on Wednesday said there was "no rush" to cut interest rates, adding that recent economic data indicated that rates may need to stay elevated for longer.
Persons: Christopher Waller, Waller, Dow Jones Organizations: Treasury, Federal Reserve, Investors, Federal, PCE
Gold subdued as dollar firms, investors seek more Fed cues
  + stars: | 2024-03-27 | by ( ) www.cnbc.com   time to read: +2 min
Gold prices held steady on Tuesday despite a stronger dollar and elevated Treasury yields, as investors awaited the minutes of the last U.S. Federal Reserve policy meeting for more clues on its interest rate cut timing. Gold prices edged lower on Wednesday due to an uptick in the dollar, although bullion traded in a narrow range as investors stayed on the sidelines awaiting more cues on the U.S. Federal Reserve policy. Spot gold was down 0.1% at $2,176.80 per ounce, as of 0533 GMT. The dollar index strengthened 0.1% against its rivals, making gold more expensive for other currency holders. "It's difficult to construct an overly bearish case for gold prices with the current backdrop of geopolitics and potential central easing," City Index senior analyst Matt Simpson said.
Persons: Matt Simpson, Austan Goolsbee, JP Morgan Organizations: Federal Reserve, U.S . Federal, Index, Chicago Fed, Fed Locations: U.S
Gold holds tight range as focus turns to U.S. inflation data
  + stars: | 2024-03-26 | by ( ) www.cnbc.com   time to read: +2 min
Gold bars of different sizes lie in a safe on a table at the precious metals dealer Pro Aurum. Gold prices were stuck in a tight range on Tuesday as investor focus turns to U.S. inflation data due later this week, which could shed more light on the timing of the Federal Reserve's first interest rate cut this year. Gold prices hit a record high last week after Fed policymakers indicated they still expected to reduce interest by three-quarters of a percentage point by 2024 end despite recent high inflation readings. Meanwhile, Fed Governor Lisa Cook cautioned the U.S. central bank needs to proceed carefully as it decides when to begin cutting interest rates. Lower interest rates reduce the opportunity cost of holding bullion.
Persons: Kyle Rodda, Capital.com, Austan Goolsbee, Lisa Cook Organizations: Aurum, Federal, Chicago Fed Bank, Traders, Fed Locations: U.S
About 90%, or $1.1 trillion, of that profit went to shareholders through stock buybacks and dividend payments, according to new research from anti-poverty organization Oxfam International. At the same time, the study found, only 10 of those 200 companies have made public statements in support of paying a living wage. For some of those companies, the average CEO-to-worker pay ratio is now above 1,500 to 1, the nonprofit confederation found. Oxfam’s study found that on average, pharmaceutical companies paid just 11.6% in taxes in 2022 (that’s down from 11.8% in 2021). Trump Media generated just $3.4 million of revenue through the first nine months of last year, according to SEC filings.
Persons: , we’ll, , Irit Tamir, Joe Biden, Donald Trump, Matt Egan, Devin Nunes, Dave Calhoun, Chris Isidore, Calhoun, Max Organizations: CNN Business, Bell, New York CNN, CME, Oxfam International, Oxfam, Corporations, Institute for Policy Studies, Tax, Truth Social, Trump Media, Trump Media & Technology Group, Corp, Digital, Trump, Nasdaq, Big Tech, , overvaluing Trump Media, SEC, Twitter, CNN, Boeing, CNBC, Alaska Airlines, Max Locations: New York, United States
Gold rises on hopes for Fed rate cut in June, softer dollar
  + stars: | 2024-03-25 | by ( ) www.cnbc.com   time to read: +2 min
An employee handles one kilogram gold bullions at the YLG Bullion International Co. headquarters in Bangkok, Thailand, on Friday, Dec. 22, 2023. Gold prices rose on Monday as renewed bets that the U.S. Federal Reserve would begin cutting interest rates in June and a softer dollar lifted bullion's appeal. The dollar was down 0.1% against its rivals, making gold less expensive for other currency holders. Looks like June is being the most probable time when they are sort of expected to pull the trigger on that first rate cut." Lower interest rates reduce the opportunity cost of holding bullion.
Persons: Tim Waterer Organizations: Co, U.S . Federal Reserve, KCM, Traders, Fed Locations: Bangkok, Thailand
Treasury yields dip as Fed meeting is due to kick off
  + stars: | 2024-03-19 | by ( Sophie Kiderlin | In | ) www.cnbc.com   time to read: +1 min
ET, the yield on the 10-year Treasury yield was down by over one basis point to 4.3243%. The 2-year Treasury yield was last at 4.7256% after dipping by around one basis point. U.S. Treasury yields were slightly lower on Tuesday ahead of the Federal Reserve's meeting, which investors are hoping will provide fresh insights into policymakers' expectations for the economy. Markets are widely expecting the Fed to keep interest rates unchanged, but uncertainty remains about the path ahead for them. Elsewhere, the Bank of Japan on Tuesday hiked interest rates for the first time in 17 years and ended its yield curve control policy in a historic move.
Organizations: Treasury, Federal, Traders, Bank of Japan
HONG KONG (AP) — Asian stocks advanced Monday ahead of policy decisions this week by Japan’s central bank and the Federal Reserve. Markets are awaiting a decision by the Bank of Japan on Tuesday on whether to raise its benchmark interest rate for the first time in 17 years. A report on consumer prices last week showed inflation remains stubborn, ticking up to 3.2% in February from 3.1% in January. Another report on prices at the wholesale level also showed inflation remains hotter than Wall Street expected. The Fed's main rate remains at its highest level since 2001.
Persons: Australia’s Organizations: Japan’s, Federal Reserve, Nikkei, Bank of Japan, Dow Jones, Nasdaq, Technology, Software, Adobe, Microsoft, Broadcom, Google, University of Michigan, Fed, Traders, CME Group, New York Mercantile Exchange, Brent, U.S Locations: HONG KONG, Tokyo, Hong Kong, Shanghai, South Korea, India, Bangkok, U.S
Germany’s DAX added 0.1% to 17,959.35 and the FTSE 100 in London edged 0.1% higher to 7,731.73. Markets are awaiting a decision by the Bank of Japan on Tuesday on whether to raise its benchmark interest rate for the first time in 17 years. The Hang Seng in Hong Kong edged 0.1% higher to 16,737.12, and the Shanghai Composite index gained 1% to 3,084.93. Elsewhere, Australia’s S&P/ASX 200 edged 0.1% higher to 7,675.80, and the Kospi in South Korea advanced 0.7%, to 2,685.84. A report on consumer prices last week showed inflation remains stubborn, ticking up to 3.2% in February from 3.1% in January.
Persons: Germany’s DAX, Australia’s Organizations: Japan’s, Federal Reserve, CAC, Dow Jones, Nikkei, Bank of Japan, Honda Motor, Dongfeng Motor, Nasdaq, Software, Adobe, Microsoft, Broadcom, Google, University of Michigan, Fed, Traders, CME Group, New York Mercantile Exchange, Brent, U.S Locations: HONG KONG, London, Paris, Tokyo, Hong Kong, Shanghai, China, South Korea, India, Bangkok, U.S
The 2-year Treasury yield was last less than 1 basis point lower at 4.715%. U.S. Treasury yields were little changed on Monday as investors looked ahead to the Federal Reserve's March meeting, which could provide clues about the outlook for interest rates. The Fed is due to meet on Tuesday and Wednesday and will announce its latest interest rate decision and monetary policy guidance at the end of its meeting. Markets are widely expecting the central bank to leave interest rates unchanged. Fed policymakers have previously said that their decision-making regarding interest rates would be data-dependent and that they were still looking for more evidence that inflation is easing.
Organizations: Treasury, U.S, Federal, Traders, Bank of England
From Caitlin Clark fever in Iowa to a packed house of 92,000 fans for women's volleyball in Nebraska, women's sports have never been more at the forefront. Last year saw record media deals for women's sports as the NCAA and NWSL both inked groundbreaking agreements. David Dow | Getty ImagesCathy Engelbert, commissioner of the Women's National Basketball Association: One of the obstacles is the undervaluation of our assets. Jayna Hefford, senior vice president of operations for the Professional Women's Hockey League: Women's sports still struggle to secure prime broadcast windows, consistent airtime and traditional media coverage. Steven Ferdman | Getty ImagesAmy Howe, FanDuel CEO: Women's sports need to continue to position their star athletes (i.e.
Persons: Caitlin Clark, Matthew Holst, there's, Renie Anderson, Jessica Berman, Jesse Grant, CNBC Jessica Berman, Cathy Engelbert, Breanna Stewart, David Dow, Jessica Gelman, John Lamparski, KAGR, Caitlin Clark's, Jayna Hefford, Haley Rosen, Mollie Marcoux Samaan, Michael Reaves, LPGA we've, Katrina Adams, Louis Armstrong, USTA Billie Jean King, Steven Ryan, Sabrina Ionescu, Coco Gauff, , Berman, Pamela Duckworth, Engelbert, Magic Johnson, Larry Bird, Michael Jordan, Amy Howe, Steven Ferdman, FanDuel, Ionescu, A'ja Wilson, Rosen, Adams, they've, Renie, Anderson, I'm, influencers, Duckworth, Angel Reese, Billie Jean King, Jayna, Mark Blinch Organizations: Iowa Hawkeyes, NCAA, Michigan Wolverines, Carver, Getty, women's, Deloitte, CNBC, NFL, National Women's Soccer League, National Women's Soccer, WNBA, New York Liberty, Kia, Connecticut Sun, National Basketball Association, Business, New York Marriott Marquis Hotel, MIT Sloan Sports Analytics, MIT Sloan Sports Analytics Conference, Sports, Professional Women's Hockey, Association, Tiburon Golf Club, Professional, LPGA, USTA, Louis, USTA Billie, USTA Billie Jean King National Tennis Center, United States Tennis Association, Women's Tennis, Fubo Studios, FuboTV, NBA, Nike, Wall, Spring Studios, Renie Anderson NFL, Toronto, New York, Mattamy Athletic Centre Locations: Iowa City , Iowa, Iowa, Nebraska, Brooklyn , New York, New, New York City, Naples , Florida, NY, Toronto , Ontario, Canada
The 2-year Treasury yield was last less than one basis point higher to 4.6936%. U.S. Treasury yields were little changed on Friday as investors considered the outlook for interest rates after inflation data released Thursday came in higher than expected. Investors assessed the path ahead for monetary policy after Thursday's inflation data came in hotter than expected, raising uncertainty about when interest rate cuts may begin. The core PPI, which excludes food and energy prices, came in at 0.3%. Investors are, however, hoping for hints about the timeline for interest rate cuts, which Fed officials have so far given little indication about.
Persons: Dow Jones Organizations: Treasury, U.S, Investors, PPI, Federal
Final Trades: Lululemon, CME Group and Archer-Daniels-Midland
  + stars: | 2024-03-15 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFinal Trades: Lululemon, CME Group and Archer-Daniels-MidlandThe Investment Committee gives their top stocks to watch for the second half.
Organizations: Group, Daniels, Midland, Investment
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