Today's Summary Economic News(2023-02-17)

 

 

US Market Ends Higher After Positive Retail Sales Data

The US stock market ended higher on Wednesday after the Commerce Department reported that retail sales surged 3% in January, well past the 1.8% estimate from economists. This data offered evidence of resilience in the US economy, but gains were capped as investors worried about more interest rate hikes by the Federal Reserve in the months ahead.

Fueled by a rebound in growth stocks that were hammered in last year's stock market downturn, the S&P 500 and Nasdaq have recovered 8% and 15%, respectively. A better-than-expected quarterly earnings season has provided cautious optimism, with more than half of all S&P 500 companies having reported earnings and nearly 70% of those topping profit expectations.

Apple, Alphabet, Amazon and Tesla rose between 1.4% and 2.4%, driving gains in the S&P 500 and Nasdaq. The S&P 500 climbed 0.28% to end the session at 4,147.61 points, while the Nasdaq gained 0.9%.

Stock Market Reacts to Strong Consumer Data

The Dow Jones Industrial Average rose 0.1%, or 39 points, the Nasdaq was up 0.92%, and the S&P 500 gained 0.28% on Wednesday, as investors reacted to strong consumer data. Retail sales rose 3% last month, beating economists’ forecast for a 1.8% increase, and the retail sales control group – which is filtered into U.S. GDP – climbed 1.7 %, well above forecasts for a 0.8% rise. This strong consumer data, which makes up about two-thirds of economic growth, added to fears about a more aggressive Federal Reserve, causing Treasury yields to retreat and supporting growth sectors of the market.

Tech stocks were the big gainers, with Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) leading the way. Analog Devices (NASDAQ:ADI) jumped 7% to a 52-week high after reporting quarterly results that topped Wall Street estimates on both the top and bottom lines. Roblox (NYSE:RBLX) surged 26% as the video game company reported better-than-expected fourth-quarter results, driven by a jump in bookings. Airbnb (NASDAQ:ABNB) also delivered upbeat guidance after quarterly results beat estimates on both the top and bottom lines as a healthy demand for travel underlined the recovery in the travel sector.

U.S. CPI Prompts Fed Peak Reset, Buffett Takes Another Bite of Apple

The U.S. consumer price index (CPI) rose 6.4% on the year in January, higher than the expected 6.2%, prompting the Federal Reserve to keep hiking interest rates in the near term. This has caused the market to shift higher its estimate of what level the U.S. central bank ends its series of interest rate hikes. Meanwhile, Warren Buffett has expanded his stake in Apple (NASDAQ:AAPL), with the sage of Omaha's investment vehicle, Berkshire Hathaway, buying an additional 75 million shares in the iPhone maker.

The CPI reading gives the Federal Reserve more impetus to keep hiking interest rates in the near term, with New York Federal Reserve President John Williams saying that a federal funds rate this year of between 5.00% and 5.25% "seems a very reasonable view". Richmond Fed President Thomas Barkin and Federal Reserve Bank of Dallas President Lorie Logan also noted that "if inflation persists at levels well above our target, maybe we’ll have to do more" and "we must remain prepared to continue rate increases for a longer period than previously anticipated".

The news of Buffett's increased stake in Apple has been seen as a positive sign for the company, with the Berkshire Hathaway CEO having a long history of successful investments. Apple's stock rose 1.39% in premarket trading on Wednesday.

Dollar Jumps to Six-Week Highs on Strong Economic Data

The U.S. dollar index jumped to 103.785, its highest level since Jan.6, on Wednesday due to a string of data pointing to a stronger economy. This has driven up bets on Federal Reserve rate hikes, steadying the greenback and paving the way for gains in the coming months. Retail sales rose 3% last month, beating economists’ forecast for a 1.8% increase, and the retail sales control group – which is filtered into U.S. GDP – climbed 1.7 %, well above forecasts for a 0.8% rise.

The likely strength in the dollar would be supported by risk aversion returning to asset markets and improved yield differentials between the U.S. and other markets. Fed Funds futures are now pricing in 68bp of extra hikes, having added around 7bp in price after the inflation release.

Chief Market Strategist David Keller at StockCharts told Investing.com in an interview on Wednesday that a higher low would be the most compelling reversal in the dollar, meaning instead of the dollar just making lower lows, which is what happened for the past few months.

Oil Futures Flat to Lower as Dollar Strengthens and Interest Rates Rise

Oil futures were flat to lower on Wednesday as the U.S. dollar strengthened and investors worried that rising interest rates would slow the economy and cut fuel demand. Brent futures slid 20 cents, or 0.2%, to $85.38 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 47 cents, or 0.6%, to $78.59. The U.S. dollar rose to a near six-week high against a currency basket on strong U.S. retail sales data last month and recent U.S. inflation data, suggesting the Federal Reserve (Fed) will keep monetary policy tight. Federal Reserve officials said the U.S. central bank will need to maintain gradual interest rate increases to fight inflation. Investors worry higher rates could slow the economy. U.S. crude stockpiles jumped by 16.3 million barrels last week to 471.4 million barrels, their highest since June 2021, the U.S. Energy Information Administration (EIA) said. But analysts said an unusually large crude oil supply adjustment contributed to the outsized build.

#US500 #DJI #GOOGL #AAPL #AMZN #DVN

#StockMarket #DowJones #RetailSales #TechStocks #Airbnb #Roblox #BerkshireHathaway #AnalogDevices #TaiwanSemiconductor

#USCPI #FedRates #WarrenBuffett #Apple #BerkshireHathaway #StockMarket #Inflation #Investing

#Dollar #Economy #FederalReserve #RetailSales #GDP #YieldDifferentials #RiskAversion #Inflation #BearishTrend #Reversal

#OilPrices #OilFutures #USdollar #InterestRates #FuelDemand #Economy #CrudeStockpiles #CrudeOilSupply

Today's Summary Economic News(2023-02-15)

Wall Street Closes Sharply Higher as Investors Await Inflation Data

On Monday, Wall Street closed sharply higher as investors awaited inflation data likely to hint at the path of the Federal Reserve's future interest rate hikes. Meta Platforms gained after a report that the Facebook parent was planning fresh layoffs, and tech-related heavyweights such Microsoft, Nvidia, Apple, and Amazon each rose over 1%. Stifel raised its price target on Microsoft and said it is clearly looking to upend Alphabet's Google search dominance through its integration with ChatGPT. The S&P 500 climbed 1.15% to end the session at 4,13.

The sentiment of the paragraph is positive. Investors are looking to the upcoming inflation data to reassess their bets on the central bank's monetary policy path, while tech-related stocks are rising and Microsoft is looking to upend Google's search dominance.

Dow Rallies on Dip-Buying Ahead of Inflation Report

The Dow Jones Industrial Average, S&P 500, and Nasdaq all rose on Monday as investors took advantage of dip-buying opportunities in tech stocks. Meta Platforms and Microsoft were the biggest beneficiaries of the buying, with Meta jumping 3%. The rebound in tech comes a day before the inflation report, which is expected to show a reacceleration in price pressures. Matt Kennedy, portfolio manager at Angel Oak Capital Advisors, believes that the report could surprise to the upside and encourage the Federal Reserve to remain committed to further rate hikes. Fidelity National Information Services Inc reported quarterly results that beat expectations, but weaker guidance caused its shares to fall 12%.

The sentiment of this paragraph is positive. Investors are taking advantage of dip-buying opportunities in tech stocks, which is expected to encourage the Federal Reserve to remain committed to further rate hikes. Despite weaker guidance from Fidelity National Information Services Inc, the overall sentiment is positive.

U.S. Air Force Shoots Down Unidentified Flying Objects, Adani to Reduce Capital Expenditure

The U.S. Air Force has been shooting down unidentified flying objects over North America, while Indian conglomerate Adani plans to reduce capital expenditure. Wall Street is set for a cautious open ahead of Tuesday's key inflation data, while the European Commission published its latest forecasts, predicting the European Union will avoid recession this year.

The U.S. military confirmed that it shot down another flying object on Sunday, the fourth such entity to be downed over North America by a U.S. missile in a little more than a week. While Washington was quick to describe the first object as a suspected Chinese surveillance balloon, there appears to be more mystery around the latest items. U.S. Air Force General Glen VanHerck said the military had been unable to identify the three latest objects, even refusing to rule out aliens as an explanation. China responded by claiming that U.S. high-altitude balloons had flown over its airspace without permission more than 10 times since the beginning of 2022.

Adani Group plans to cut its revenue growth target as well as capital expenditure. The group has suffered a drastic selloff since U.S. short-seller Hindenburg Research accused it of stock manipulation in late January. Bloomberg reported, citing sources, the group will now aim for revenue growth of 15% to 20% for at least the next financial year.

Overall, the news is a mixed bag of positive and negative sentiment. The U.S. Air Force is taking steps to protect North America, while Adani is reducing capital expenditure. The European Commission's latest forecasts predict the European Union will avoid recession this year, but Wall Street is set for a cautious open ahead of Tuesday's key inflation data.  #AirForce #UFO #Adani #CapitalExpenditure #InflationData #EUForecasts

Oil Prices Edge Higher on Russia's Production Cut Plans

Oil prices edged higher on Monday, rebounding from early losses, as investors weighed Russia's plans to cut crude production and short-term demand concerns ahead of U.S. inflation data this week. Brent futures for April delivery rose 22 cents, or 0.3%, to $86.61 a barrel, while U.S. crude rose 42 cents, or 0.5%, to $80.14 per barrel gain. Phil Flynn, analyst at Price Futures Group, noted that the fundamental backdrop for oil is still very strong, with China reopening leading to more demand and Russia and OPEC having the same or less supply, which is bullish.

The rise in oil prices was further buoyed by Russia's announcement to cut crude production in March by 500,000 barrels per day (bpd), or about 5% of output, in retaliation against Western curbs imposed on its exports in response to the Ukraine conflict. The United Arab Emirates' energy minister also said there was no need for the OPEC+ group of oil-producing nations to meet earlier than scheduled as the market was balanced.

Both the Brent and WTI contracts rose more than 8% last week, due to optimism over demand recovery in China after COVID curbs were scrapped in December. U.S. main stock indexes also rose on Monday. The U.S. Federal Reserve has been raising interest rates to rein in inflation, leading to concerns the move would slow economic activity and demand for oil. Matthew Ryan, head of market strategy at financial services firm Ebury, noted that it is difficult to overstate the importance of this single data point, as traders and the Fed look for confirmation of the gradual downward trend of the past few months.

Overall, the sentiment surrounding oil prices is positive, as the market is being supported by Russia's production cut plans, OPEC+ group's decision to not meet earlier than scheduled, and demand recovery in China. Additionally, supply concerns were relieved somewhat as a cargo of Azeri crude set sail from Turkey's Ceyhan port on Monday.

U.S. Equities Move Lower Ahead of CPI Release

As the U.S. equities moved lower last week, investors are now awaiting the release of the Consumer Price Index (CPI) for January. The S&P 500 (SPX) closed 1.1% lower, Nasdaq Composite Index (IXIC) fell 2.4%, while Dow Jones Industrial Average (DJI) had another uneventful week (-0.17%). The headline inflation is expected to drop to 6.2% year-over-year (YoY) from 6.5% reported for December and the core inflation (excluding food and energy) is expected at 5.5% and 0.4%, YoY and MoM, respectively. Analysts have warned of a “growing” risk that the January CPI report could overshoot, which could bring the markets back in-line with one another.

#WallStreet #InflationData #TechStocks #Microsoft #Google #PositiveSentiment

#DowJonesIndustrialAverage #S&P500 #Nasdaq #MetaPlatforms #Microsoft #InflationReport #FederalReserve #RateHikes #FidelityNationalInformationServicesInc

#AirForce #UFO #Adani #CapitalExpenditure #InflationData #EUForecasts

#OilPrices #Russia #OPEC #DemandRecovery #Inflation #Ebury #AzeriCrude

#USEquities #CPI #Inflation #SPX #IXIC #DJI #YoY #MoM

Today's Summary Economic News(2023-02-14)

U.S. Stock Futures Lower Ahead of Economic Data

U.S. stock futures were trading lower on Sunday evening as investors looked ahead to fresh economic data set for release later in the week. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closed out the previous week with significant losses.

The upcoming week will be closely monitored for January’s CPI and PPI index, retail sales, industrial production, business inventories and permits, housing starts, Philadelphia Fed manufacturing index, import and export prices, and speeches from Logan, Bowman, Williams, Harker, Bullard and Mester. Major companies such as Coca-Cola Co, Cisco Systems Inc, Paramount Group Inc, and Deere & Company are also set to report results.

On the bond markets, United States 10-Year rates were at 5-week highs of 3.742%. The Dow remained unchanged while the S&P 500 and Nasdaq lost 0.7% and 1.5% respectively.

as investors are concerned about the upcoming economic data and the losses that the major benchmark averages experienced in the previous week.

Investors Await U.S. Inflation Data

Investors will be closely monitoring Tuesday's U.S. inflation data to gain insight into the Federal Reserve’s rate hike path. This week, the U.K. is set to release a variety of economic data, Japan’s government is set to nominate a new central bank governor, and the Eurozone will release updated quarterly economic forecasts. Investors will be looking for signs that inflation is continuing to moderate after recent strong jobs data saw markets recalibrate expectations for how high the Fed may need to raise rates this year. Data for the prior two months was also revised up, according to the Labor Department's annual revisions of CPI data.

Earnings season is winding down, with more than half of the firms listed on the S&P 500 having reported earnings. 69% of these companies have beat profit estimates for the quarter, according to Refinitiv data. Notable earnings in the week ahead include Coca-Cola (NYSE:KO).

The Nasdaq posted its first weekly fall for this year last week, down 2.41%, while the S&P 500 ended the week lower 1.11% and the Dow Jones lost 0.17%. This was likely due to hawkish commentary from Fed officials and earnings reports.

Overall, the sentiment of this paragraph is positive. Investors are looking forward to the release of economic data and earnings reports, and the majority of companies have beat profit estimates. Although the Nasdaq, S&P 500, and Dow Jones all ended the week lower, this was likely due to hawkish commentary from Fed officials and earnings reports.

Insider Trading Recap: B. Riley Chief Picks Up Over $6 Million in Stock Post Short Report

This week's Pro Recap of some of the biggest insider trading headlines included the CEO of B. Riley Financial buying approximately $6 million worth of stock following a short seller report, ServiceNow CEO Bill McDermott selling $25 million in shares, and two more big insider buys.

The short seller report on B. Riley Financial accused the company of leveraging to purchase toxic assets during a financial mania and criticized them for not reducing losses on their "failing" investments and for providing more capital to distressed clients. Wolfpack Research also warned that the biggest risk for B. Riley is that a large portion of its loan portfolio is likely to file for bankruptcy. B. Riley's client Bed Bath & Beyond is trying to avoid bankruptcy with its recent equity offering.

ServiceNow shares fell over 3% on Monday after CEO Bill McDermott sold 53,883 shares, or approximately $25M worth, at $455.03-$460.98. Last month the company reported EPS of $2.28, coming in better than the consensus of $2.02. Revenue met expectations at $1.94 billion. It was also downgraded by Truist Securities in January to Hold from Buy with a price target of $420.00 (from $525.00).

Corteva (NYSE: CNC) and CTVA (NASDAQ: CTVA) also saw big insider buys this week. Corteva's CEO Jim Collins bought $1.5 million worth of stock at $17.25 per share, while CTVA's CEO bought $1.2 million worth of stock at $9.25 per share.

Overall, this week's insider trading news was mostly negative with B. Riley Financial and ServiceNow seeing a drop in stock prices. However, the two other big insider buys of Corteva and CTVA were a positive sign for investors.

Asian Markets Slide as Inflation Data Awaited

The Asian markets slid on Monday as investors prepared for the upcoming U.S. inflation data which could have a major impact on global interest rates. A U.S. air force shot down an airborne object near the Canadian border, adding an air of geopolitical mystery. The MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.7%, while Japan's Nikkei fell 1.0% and South Korea 0.7%. Chinese blue chips nudged up 0.6%. EUROSTOXX 50 futures were down 0.1%, while FTSE futures stayed flat. S&P 500 futures were off 0.4%, while Nasdaq futures eased 0.5%. The U.S. consumer prices and retail sales data this week will be closely watched, with median forecasts for headline and core consumer prices to rise 0.4% for the month, with sales rebounding by 1.6%. Bruce Kasman, head of economic analysis at JPMorgan, expects core CPI to rise 0.5% and sales to jump 2.2%.

The sentiment of this paragraph is negative, as the Asian markets are sliding and investors are preparing for the potential impact of the U.S. inflation data on global interest rates. The mystery of the U.S. air force shooting down an airborne object near the Canadian border adds to the negative sentiment. The forecasts for the U.S. consumer prices and retail sales data this week are not overly optimistic, with Bruce Kasman expecting core CPI to rise 0.5% and sales to jump 2.2%.

Russia to Cut Oil Production Despite G7 Price Cap

In response to the Group of Seven's crude price cap, Russia has announced that it will be cutting its oil production by 5%, or 500,000 barrels per day, from March. Deputy Prime Minister and de facto energy minister Alexander Novak stated that the price cap mechanism for selling Russian oil and oil products interferes with market relations, and that it continues the destructive energy policy of the countries of the collective west. Novak also clarified that OPEC+ has nothing to do with the cuts planned by Russia.

The United States had criticized Saudi Arabia last year when OPEC+ announced a 2-million-bpd cut in October, as it was seen as an attempt to bolster Russia’s war against Ukraine. This was followed by a 9% drop in crude prices between November and January due to Chinese demand for oil tanking from COVID-19 restrictions and fears of a global recession.

In addition to the production cut, Reuters reported that the Kremlin plans to set a fixed $20 per barrel differential for its Urals crude to dated contracts of global benchmark Brent for “tax purposes”. This news is indicative of a negative sentiment, as Russia is taking steps to protect its energy industry despite the G7's price cap.

#Today'sNews #Today'sEconomy #Today'sWorldEconomy #NewsSummary #WorldNews #EconomicNewsSummary #USStock #Gift #USInflationData #InsiderTrading #AwaitingInflation #AsiaMarketDown #RussianOilProduction

Today's Summary Economic News(2023-02-13)

Title: Debate on Fed's Ability to Engineer a Soft Landing

The debate on whether the Federal Reserve (Fed) will be able to engineer a ‘soft landing’, bringing down inflation without major economic bump, or a ‘hard landing’, hiking too much tipping the economy into recession, is ongoing. A third scenario, ‘No Landing’, is now making its way into the conversation. In this scenario, the U.S. economy doesn’t slow down, inflation remains above-trend, and the Fed is forced to not only hike rates by more than expected, but keep them elevated for longer. This uncertainty is not likely to prove fertile ground for risk assets to flourish.

The recent jobs report has played a big role in stoking the ‘no landing’ scenario, showing robust job gains and a drop in the unemployment rate to 3.4%, a five-decade low. This has dealt a blow on bets for a near-term recession, but also flagged worries about upside risks to inflation that would likely spur the Fed to go further on rate hikes and keep policy tighter for much longer.

Traders are currently pricing in at least one more quarter point hike, while the odds for a May rate hike are gaining traction. Former Treasury Secretary Lawrence Summers has cited upside risks to inflation, and investors continue to believe in the goldilocks, or soft-landing scenario. However, a stickier path for inflation at a time when markets are betting against the Fed, and the central bank has been keen to highlight that the disinflation process has started, would risk the Fed’s credibility and spur fresh uncertainty.

Signs are emerging that the disinflation, driven mainly in the goods sector, may prove transitory. Used-car prices unexpectedly climbed 2.5% last month, the most since the end of 2021, though that was driven by unseasonably strong demand. Data in the coming days is expected to show a resilient consumer and price pressures that are on up, and up.

Overall, the sentiment of this paragraph is negative, as the ‘no landing’ scenario is seen as a risk to the market and the Fed’s credibility. The data in the coming days is expected to show a resilient consumer and price pressures that are on the rise, which could lead to the ‘no landing’ scenario becoming more likely.

Title: Oil Markets Jump as Russia Announces Production Cuts and Price Structure

Oil markets jumped 2% on Friday as Russia announced production cuts and its own minimum price structure in response to the G7's price caps. Russia will cut oil production by 500,000 bpd, or barrels per day, in March, with the Kremlin also planning to set a fixed $20 per barrel differential for its Urals crude to dated contracts of global benchmark Brent for “tax purposes”. The G7+ responded swiftly to the Russian announcements, cautioning about the possibility of Moscow trying to pull off a stunt.

The U.S. Treasury Department has said that it wants to limit what the Kremlin can earn per barrel in order to squeeze Moscow’s funding for the war in Ukraine, while ensuring Russian oil supplies reach markets that need them. New York-traded West Texas Intermediate, or WTI, crude for March was up $1.66, or 2.1%, at $79.72 per barrel, while London-traded Brent crude for March delivery finished the regular session up $1.89, or 2.2%, at $86.39. For the week, the U.S. crude benchmark was up almost 9%, overwriting last week’s 7.5% plunge, while Brent was up 8% on the week, erasing last week’s 7.5% decline.

Oil prices have been rebounding this week on the premise that Chinese refiners would add exponentially to imports this month as the country returns from the long Lunar New Year break and into an environment free of COVID-19 restrictions which had previously hampered demand. However, large builds across the board in crude, gasoline and distillates in the Weekly Petroleum Status Report released by the U.S. Energy Information Administration on Wednesday ran counter to the bullish sentiment.

Overall, the sentiment in the oil markets is positive as Russia's production cuts and price structure have pushed up prices. The G7+ is wary of Russia's announcements, but the U.S. Treasury Department is still looking to limit what the Kremlin can earn per barrel in order to squeeze Moscow’s funding for the war in Ukraine. Chinese import data will likely not emerge for weeks, but the current sentiment is positive as oil prices have been rebounding this week.

Title: Mixed Market Performance as Fed Hikes Weigh on Growth Sectors

The Dow Jones Industrial Average rose 0.5% on Friday, driven by a surge in energy stocks, but still ended the week down 0.2%. The Nasdaq and S&P 500 also ended the day down 0.6% and 0.2% respectively. The jump in Treasury yields and bets on a more hawkish Federal Reserve cooled the rotation into growth sectors including tech, with Alphabet (NASDAQ:GOOGL) ending the day flat and semiconductor stocks, such as Nvidia (NASDAQ:NVDA), falling more than 4%.

Earnings reports from Lyft Inc (NASDAQ:LYFT) and Expedia (NASDAQ:EXPE) also weighed on sentiment, with both companies reporting revenue guidance that fell short of estimates and a surprise quarterly loss. Lyft's stock tumbled more than 36%, its biggest single-day decline, while Expedia's shares fell more than 8%.

Energy stocks, however, were supported by rising oil prices after Russia said it would cut production by 500,000 barrels per day next month. Goldman Sachs also cut its 2023 price target on Brent crude by $5 to $75 per barrel, citing a 1.1 mb/d rise in China demand this year.

Tesla Inc (NASDAQ:TSLA) fell 5% after investor Ross Gerber said he will pursue a seat on the electric carmaker's board due to frustrations about the company's lack of marketing and public relations efforts.

Overall, the market performance was mixed on Friday, with the Dow ending higher but the Nasdaq and S&P 500 closing lower. Renewed concerns of Fed hikes and weaker than expected earnings reports from Lyft and Expedia weighed on sentiment on growth sectors like tech, while energy stocks were supported by rising oil prices. The sentiment on Tesla Inc was also negative due to investor Ross Gerber's frustrations about the company's lack of marketing and public relations efforts. This sentiment is negative.

Title: U.S. F-22 Fighter Jet Shoots Down Unidentified Object in Alaska

On Friday, a U.S. F-22 fighter jet shot down an unidentified object flying high over Alaska. The object, which was about the size of a small car, was downed by a Sidewinder missile. White House spokesperson John Kirby stated that it was unclear where the object had originated from. President Joe Biden ordered the shootdown, which was announced from the White House.

This follows the shootdown of a Chinese surveillance balloon off the coast of South Carolina last week. China's government has claimed that it was a civilian research vessel. Some lawmakers criticized the president for not shooting down the Chinese balloon sooner, as the U.S. military had recommended waiting until it was over the ocean out of fear of injuries from falling debris.

The Pentagon and the White House declined to give a detailed description of the latest object, saying only that it was far smaller than the Chinese balloon. U.S. officials declined to speculate about what the object might be, even after a day of observation, raising questions about what kind of object could be so difficult to identify by experienced U.S. pilots and intelligence officials.

The Pentagon said it was first detected on Thursday using ground radars and F-35 aircraft were then sent to investigate. The UFO was flying at about 40,000 feet (12,190 meters) in a northeasterly direction, posing a risk to civilian air traffic. The object was shot down off the coast of northeastern Alaska over frozen U.S. territorial waters near the Canadian border.

Brig. Gen. Patrick Ryder, the Pentagon's chief spokesperson, stated that American pilots who flew alongside the latest object before it was downed determined that no human was aboard. He added it was incapable of maneuvering and did not resemble an airplane. After the shootdown, some lawmakers praised Biden, with Senator Mark Warner, chair of the Senate Intelligence Committee, saying he was glad to see the president act swiftly on this new intrusion to our airspace.

Overall, the sentiment of this summary is positive. The U.S. military was able to successfully shoot down an unidentified object flying over Alaska, and President Joe Biden was praised for his swift action. The Pentagon was also able to determine that no human was aboard the object, and that it was incapable of maneuvering and did not resemble an airplane. The shootdown also raised questions about what kind of object could be so difficult to identify by experienced U.S. pilots and intelligence officials.

Title: ECB Must Avoid Excessive Rise in Real Interest Rates

The European Central Bank (ECB) must be careful to avoid pushing real interest rates too high, given the level of private and public debt in the euro area, according to Ignazio Visco, a top Italian policymaker and ECB Governing Council member. Since July, the ECB has raised interest rates by 3 percentage points and promised a 50 basis-point hike for March. Visco believes that the credibility of the ECB's actions is preserved not by flexing their muscles in the face of inflation, but by continually showing wisdom and balance. Investors and economists have focused on a peak in the deposit rate of between 3.25% and 3.5%, which suggests just one or two moves after the March hike and an end by mid-year.

Inflation has dropped by around 2 percentage points since its peak in October, and further falls are likely as natural gas prices retreat. However, underlying price growth appears to be stubbornly high leading to fears that inflation could get stuck at levels above the ECB's 2% target, partly due to rapid nominal wages growth. Visco believes that there are no compelling reasons for inflation not to return to target, and that the persistence of inflation in many countries during the 1970s is very unlikely to be repeated.

Overall, this paragraph has a positive sentiment as it emphasizes the importance of the ECB being careful to avoid pushing real interest rates too high and the need to continually show wisdom and balance. Visco also believes that there are no compelling reasons for inflation not to return to target and that the persistence of inflation in many countries during the 1970s is very unlikely to be repeated.

#No Landing Scenario #OilMarket #G7PriceCap #MarketSentiment #MarketSentiment #UFOShooting #U.S.AirPublicProtection #ECB Interest Rate #InflationOutlook #RoomProtection #Today'sNews #Today'sEconomicNews #GlobalEconomicNews #SumNews #ChinaBalloonShooting #RussiaCutting

Today's Summary Economic News(2023-02-10)

US Stock Indexes End Lower Despite Strong Earnings

U.S. stock indexes ended lower on Thursday, erasing earlier gains as Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo. Jason Ware, chief investment officer at Albion Financial Group in Salt Lake City, Utah, said investors were also still digesting recent comments from Fed officials. Yields on the U.S. 30-year note rose after the Treasury Department saw weak demand for a $21 billion sale, the final sale of $96 billion in coupon-bearing supply this week.

The Dow Jones Industrial Average fell 249.13 points on Thursday, or 0.73%, to 33,699.88, the S&P 500 lost 36.36 points, or 0.88%, to 4,081.5 and the Nasdaq Composite dropped 120.94 points, or 1.02%, to 11,789.58. Volume on U.S. exchanges was 11.49 billion shares, compared with the 11.93 billion average for the full session over the last 20 trading days.

The stock market started the day with a bullish bias, but then Treasury yields moved up and that took some of the steam out of the positive market. Initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 196,000 last week, above a forecast of 190,000 claims, which tentatively eased concerns about the Federal Reserve's rate-hike path after a strong January employment report rattled markets last week.

Alphabet Inc extended losses from the previous session to fall 4.7%, weighing on the S&P 500 and Nasdaq indexes. Salesforce Inc rose 2.38% on reports that hedge fund Third Point LLC owns a stake in the company. Disney Co beat earnings estimates and announced job cuts, encouraging activist investor Nelson Peltz to terminate his quest for a board seat, but still ended down 1.27%. PepsiCo Inc rose 0.95% as the snack and beverage maker reported better-than-expected results, while drugmaker AbbVie Inc gained 2.82% after beating fourth-quarter profit expectations. Tapestry Inc soared 3.47% on a strong annual profit forecast. Cardiovascular Systems Inc soared 48.38% after Abbott Laboratories said it would buy the medical device maker for $837.6 million. Abbott fell 1.93%.

Overall, the sentiment of the market is negative, as the stock indexes ended lower despite strong earnings from corporate giants. Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed the positive earnings news. Investors were also still digesting recent comments from Fed officials, which added to the bearish sentiment. Alphabet Inc extended losses from the previous session to fall 4.7%, weighing on the S&P 500 and Nasdaq indexes. Despite some positive news, such as Salesforce Inc rising 2.38% on reports that hedge fund Third Point LLC owns a stake in the company, and Disney Co beating earnings estimates and announcing job cuts, the market still ended lower.

US Stock Market Closes Lower as Bond Market Warns of Economic Troubles

Summary: On Thursday, the Dow Jones Industrial Average closed lower, with the Nasdaq and S&P 500 also falling. This decline was attributed to a slip in Alphabet's stock, as well as warnings from the bond market about economic troubles. The 2-10 Treasury yield curve inverted by 85 basis points, the deepest inversion since the early 1980s, which caused investors to worry about a recession. Jobless claims data released on Thursday surprised to the upside, suggesting that the recent surge in layoffs will start to push claims higher later this year. Alphabet's stock was the biggest drag on the market, as investors were disappointed with the company's AI chatbot 'Bard' unveiled on Wednesday. Financials were also weak, due to a dip in bank stocks caused by the inverted yield curve. Consumer stocks were kept above the flatline by a rally in casino stocks following better-than-expected quarterly results from Wynn Resorts and MGM Resorts. Walt Disney Company also reported quarterly results that beat Wall Street estimates, but ended lower after announcing a restructuring plan that will include 7,000 job cuts. Affirm Holdings Inc was punished after its fiscal second-quarter results fell short of analyst estimates and the company said it would cut about 19% of its workforce.

This summary reflects a negative sentiment, as the US stock market closed lower, Alphabet's stock declined, and jobless claims data surprised to the upside. Furthermore, the bond market's warnings of economic troubles and the inversion of the 2-10 Treasury yield curve caused investors to worry about a recession. Additionally, Walt Disney Company announced a restructuring plan that will include 7,000 job cuts, and Affirm Holdings Inc said it would cut about 19% of its workforce.

Title: U.S. Stocks Reversing Gains Despite Strong Earnings Reports

U.S. stocks reversed earlier gains on Thursday and were turning lower despite strong earnings reports that overcame fears about more interest rate increases. At 13:29 ET (18:29 GMT), the Dow Jones Industrial Average was down 63 points or 0.2%, while the S&P 500 was down 0.1% and the NASDAQ Composite was flat. Walt Disney Company (NYSE:DIS) beat expectations and announced a reorganization that will result in 7,000 job cuts as it focuses on lowering costs. PepsiCo, Inc. (NASDAQ:PEP) and AbbVie, Inc. (NYSE:ABBV) also beat expectations for the recent quarter. Jobless claims came in slightly higher than expected. Initial claims for last week were 196,000, higher than the 190,000 expected and up from the prior week.

The strong jobs report for January stoked some fear that the Federal Reserve would be forced to continue to raise rates. Fed officials said this week that the central bank’s mission to cool inflation isn’t yet done, and could take longer than some expect. Investors have been hoping for a sign that its interest rate hikes are about to reach a pause, and eventually a reversal. Futures market traders are betting the Fed will lift rates to just over 5% by July. Most foresee another quarter percentage point rate hike in March.

Next week brings the newest data on the consumer price index and retail sales, which the Fed will be watching to help guide its policy. Later today, PayPal Holdings, Inc. (NASDAQ:PYPL) reports earnings. Analysts expect earnings per share of $1.20 on revenue of $7.4 billion. The report would come a day after buy now pay later rival Affirm Holdings, Inc. (NASDAQ:AFRM) missed expectations and announced it would cut 19% of its workforce, acknowledging it didn’t shift quickly enough when economic conditions changed in the past year.

Overall, the sentiment of this article is negative. Despite strong earnings reports from companies such as Walt Disney Company, PepsiCo, and AbbVie, U.S. stocks were still turning lower. Jobless claims were slightly higher than expected, and the strong jobs report for January has caused some fear that the Federal Reserve will continue to raise rates. Investors are hoping for a sign that the rate hikes are about to reach a pause, but futures market traders are betting the Fed will lift rates to just over 5% by July. Next week brings new data on the consumer price index and retail sales, which the Fed will be watching to help guide its policy. The report from PayPal Holdings, Inc. today will come a day after Affirm Holdings, Inc. missed expectations and announced job cuts.

Consumer Sector Posts Weak Outlook as Disney Stock Jumps

Summary: On Thursday, 9th February, Walt Disney (NYSE:DIS) stock soared in premarket after the company narrowed its loss on streaming and announced 7,000 job cuts to shore up profitability. Chief executive Bob Iger also said he will ask the board to reinstate the company's dividend by the end of the year. Other consumer-facing companies such as PepsiCo (NASDAQ:PEP), Philip Morris (NYSE:PM), Kellogg (NYSE:K), Unilever (NYSE:UL) and British American Tobacco (NYSE:BTI) all forecast weak outlooks for 2023 after forcing consumers to wear some chunky price increases last year. Stocks are set to open higher ahead of the weekly jobless claims numbers, and oil rises on the back of another report showing how much the market will tighten this year. German CPI may cause Eurozone number to be revised higher and crude oil prices edged to new one-week highs, shrugging off official U.S. data which showed that crude stocks actually rose last week. The sentiment of the paragraph is positive as Disney stock jumps and oil prices rise.

Natural Gas Storage Draws Higher than Expected, Prices Remain Low

Last week, the Energy Information Administration (EIA) reported a draw of 217 billion cubic feet (bcf) from U.S. natural gas storage, higher than the forecasted 195 bcf. This draw was used for heating and electricity generation. As a result, the front-month March gas contract on the New York Mercantile Exchange’s Henry Hub settled at $2.43 per mmBtu, down 1.5 cents from the previous day's close. This is the lowest for a front-month gas contract on the Henry Hub since September 28, 2020, when it went down to $2.02.

The unusually warm start to the 2022/23 winter season has led to less heating demand in the United States than usual, leaving more gas in storage than initially thought. At the close of last week, U.S. gas storage stood at 2.366 trillion cubic feet (tcf), up 10.9% from the year-ago level of 2.249 tcf. This has caused gas prices to plunge from a 14-year high of $10 per mmBtu in August, reaching $7 in December and mid-$2 levels this week.

Overall, the sentiment of this paragraph is positive. The draw of 217 bcf from U.S. natural gas storage was higher than the forecasted 195 bcf, which is a good sign. Additionally, the front-month March gas contract on the New York Mercantile Exchange’s Henry Hub settled at $2.43 per mmBtu, which is lower than the previous day's close. This is the lowest for a front-month gas contract on the Henry Hub since September 28, 2020. Furthermore, the unusually warm start to the 2022/23 winter season has led to less heating demand in the United States than usual, leaving more gas in storage than initially thought. This has caused gas prices to plunge from a 14-year high of $10 per mmBtu in August, reaching $7 in December and mid-$2 levels this week.

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Today's Summary Economic News(2023-02-09)

 

US Stock Market Ends Down, Tech-Focused Shares Lead the Way Lower

On Wednesday, US stocks ended down, erasing most of the gains from the previous session. The tech-focused stocks led the way lower, with Alphabet Inc's shares falling 7.7% after its new AI chatbot gave an incorrect answer in an online advertisement. Federal Reserve officials also said more interest rate rises are in the cards as the US central bank moves ahead with efforts to control inflation.

The Dow Jones Industrial Average fell 207.68 points, or 0.61%, to 33,949.01, the S&P 500 lost 46.14 points, or 1.11%, to 4,117.86 and the Nasdaq Composite dropped 203.27 points, or 1.68%, to 11,910.52. All of the major S&P 500 sectors ended lower on the day, with communication services falling 4.1% and technology down 1.3%. The utilities lost 1.7%.

Investors have been concerned about how aggressive the Fed's actions may be this year following the surprisingly strong US jobs report Friday. They have also been concerned about mixed reports from US companies this earnings season. With results in from more than half of the S&P 500 companies, earnings still are expected to have declined year-over-year in the fourth quarter of 2022.

The sentiment of this paragraph is negative, as US stocks ended down and tech-focused stocks led the way lower. Investors are also concerned about the Federal Reserve's actions this year and mixed reports from US companies this earnings season.

Today's Summary Economic News(2023-02-08)

U.S. Stocks Rally After Fed Chair Jerome Powell's Comments

U.S. stocks rallied to a higher close on Tuesday, with investors digesting comments from Federal Reserve Chair Jerome Powell about how long the central bank may need to tame inflation. Powell said 2023 should be a year of "significant declines in inflation," which renewed investor hopes for less aggressive monetary policy that wavered after a strong U.S. jobs report last Friday. His comments caused Wall Street's main indexes to fluctuate wildly, and analysts said volatility is unlikely to dissipate soon.

The tech-heavy Nasdaq rallied on news from Microsoft Corp, and the S&P 500 also got a boost. Morgan Stanley said it added 25 basis point to its forecast for the May policy meeting, but continued to expect the first 25 basis point rate cut for December, 2023. Last week, the Fed raised interest rates by 25 basis points, with markets now pricing in a peak rate above 5% after Friday's strong jobs data.

U.S.-listed shares of Baidu Inc soared 12.18% as the Chinese search engine said it would conclude testing of its ChatGPT-style project "Ernie Bot" in March. Most sectors on the S&P 500 ended higher, with the energy sector the top gainer as crude prices surged more than 3%. The technology and communication services sectors were also among top gainers.

Overall, the sentiment is positive as investors are encouraged by Powell's comments and the strong performance of the stock market. The Dow Jones Industrial Average rose 265.67 points, or 0.78%, to 34,156.69, the S&P 500 gained 52.92 points, or 1.29%, to 4,164 and the Nasdaq Composite added 226.34 points, or 1.9%, to 12,113.79. Volume on U.S. exchanges was 11.98 billion shares, in line with the full session over the last 20 trading days. So far, more than half of the companies on the S&P 500 have reported quarterly earnings, with 69.1% of them beating expectations. The sentiment is positive as investors are encouraged by Powell's comments and the strong performance of the stock market.

Powell Reiterates Need for Further Rate Hikes

Federal Reserve Chairman Jerome Powell reiterated the need for further rate hikes on Tuesday, citing the strong labor market as a reason for the need to bring inflation down to the central bank's target. He noted that the January jobs report was stronger than expected, and that it will take a significant period of time to bring inflation down to the desired level. Powell also stated that it was good that inflation was starting to come down without sacrificing the strength of the labor market.

Analysts have responded to Powell's remarks by noting that he is not being overly hawkish or dovish, but rather is trying to give himself the option to either pause or hike in the last few meetings. Some have interpreted the remarks as hawkish enough to price in more hikes, with Morgan Stanley adding a 25bp to the May FOMC meeting, bringing the peak rate expectation to 5.00% to 5.25%. The odds of a May rate hike have also jumped to 69% from 38% last week.

Overall, the sentiment of Powell's remarks is positive, as he is reiterating the need for further rate hikes in order to bring inflation down to the central bank's target. This is seen as a positive sign that the Fed is taking the necessary steps to ensure the economy remains stable.

Biden Expected to Call for 400% Increase in Buyback Tax

President Biden is expected to call for a 400% hike in the tax on stock buybacks during his State of the Union address tonight. The current 1% rate would be increased to 4%. While the announcement is expected to make waves, Cowen analysts don't expect House Republicans to approve a higher buyback tax, but they acknowledge that the probability is not zero.

The news is a high impact risk for banks, which are active users of stock repurchases as a way to return capital to shareholders. The Federal Reserve has pushed banks to favor stock buybacks over dividend increases since the Financial Crisis, as evidence showed banks were quick to cut buybacks but slow to slash dividends. Bank regulators are expected to privately object to a higher buyback tax, as it would encourage banks to raise dividends rather than repurchase shares.

Overall, the sentiment of this news is negative, as it could have a significant impact on banks and their stock repurchases. While the probability of House Republicans approving a higher buyback tax is not zero, it is unlikely, and the news is still a cause for concern.

Powell Reiterates Need for Rate Hikes, Stocks Surge

On Tuesday, Federal Reserve Chairman Jerome Powell reiterated the need for more rate hikes in order to bring down inflation to the Fed's 2% target. The S&P 500, Dow Jones Industrial Average, and Nasdaq all jumped in response to Powell's remarks, with big tech companies such as Microsoft Corporation (MSFT) and Alphabet Inc (GOOGL) leading the way. Energy stocks also rose, with Valero Energy Corporation (VLO), Marathon Petroleum (MPC), and Occidental Petroleum Corporation (OXY) being the biggest gainers. Chegg Inc (CHGG) and Pinterest Inc (PINS) both fell after reporting guidance that missed Wall Street expectations, while CVS Health (CVS) is reportedly closing in on a deal to buy the primary-care provider Oak Street Health (OSH) for $10.5 billion. Overall, the sentiment was positive, with investors betting on stocks driven by Powell's reiteration of the need for rate hikes.

U.S. Stocks Fall Ahead of Fed Chair Jerome Powell's Appearance

U.S. stocks were falling ahead of an appearance later today by Federal Reserve Chair Jerome Powell as investors try to gauge the central bank’s next steps. At 10:29 ET (15:29 GMT), the Dow Jones Industrial Average was down 111 points or 0.3% while the S&P 500 was down 0.2% and the NASDAQ Composite was up 0.1%. Last week’s strong jobs report for January gave investors reason to believe the Fed will continue raising rates to tame inflation, while some investors had been looking for signs when the Fed might pause its rate increases or even reverse course. The prospect of the Fed nearing an end to its tightening has lit a fire under growth stocks this year, with the tech-heavy Nasdaq up 13% so far this year despite slowing growth in the sector. Bed Bath & Beyond Inc (NASDAQ:BBBY) shares fell 43% on Tuesday after the struggling home goods retailer announced plans to sell $1 billion in stock to raise cash, while Royal Caribbean Cruises Ltd (NYSE:RCL) shares jumped 5.7% after it reported that bookings have exceeded pre-pandemic levels as its fourth quarter loss was smaller than expected. Oil rose, with Crude Oil WTI Futures up 1.7% to $75.41 a barrel and Brent Oil Futures up 1.3% to $82.02 a barrel, while Gold Futures were up 0.2% to $1,882.

Overall, the sentiment of this paragraph is neutral. The U.S. stock market is falling ahead of Federal Reserve Chair Jerome Powell's appearance, as investors try to understand the Fed's next steps. The strong jobs report for January has given investors reason to believe the Fed will continue raising rates to tame inflation, while some investors are looking for signs when the Fed might pause its rate increases or even reverse course. Bed Bath & Beyond Inc (NASDAQ:BBBY) shares have fallen 43%, while Royal Caribbean Cruises Ltd (NYSE:RCL) shares have jumped 5.7%. Oil and gold prices have also risen.

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