Wednesday's Top Reads
Here are the top stories to read during Wednesday trading:
Why the bull market in stocks can continue despite a brutal start to August.
Wells Fargo strategist says investors may face 1995 rerun once Fed cuts rates
Large money managers have to disclose their investments. Here’s how to find them.
Latest Updates
Updated 1 day ago
By
Vivien Lou Chen
U.S. stocks finished higher on Wednesday, with the S&P 500 and Nasdaq Composite each scoring their fifth consecutive trading day of gains, after a mild July consumer-price index reinforced expectations for a September rate cut by the Federal Reserve.
The Dow Jones Industrial Average closed up by 242.75 points, 0.6%, at 40,008.39, based on preliminary data. It was the index's second straight session of gains.
The S&P 500 closed up by 20.78 points, or 0.4%, at 5,455.21. It has jumped 255.71 points, or 4.9%, over the last five trading days.
The Nasdaq Composite eked out a slight gain in the final minutes of trading to finish higher by 4.99 points at 17,192.60. It has risen 996.80 points, or almost 6.2%, in the past five sessions.
On a percentage basis, the five-day performance by the S&P 500 and Nasdaq Composite was the best since the period that ended on Nov. 3, 2023.
"July’s inflation data was remarkably as-expected," said BMO Capital Markets rates strategists Ian Lyngen and Vail Hartman. "Had the Fed not already set the stage for a cut in September, this CPI print would have solidified one."
1 day ago
By
Joseph Adinolfi
Government bonds are making a comeback in 2024 after a years-long bear market resulted in the longest stretch of price declines in recent memory.
But Andrea Cicione, head of research at TSLombard, cautioned that investors shouldn’t get too excited. Those who didn’t buy bonds earlier this summer may have already missed much of the rally, he said.
Bond yields fall as prices rise, and vice versa.
Yields have fallen as investors have rushed to price in aggressive interest-rate cuts by the Federal Reserve, spurred by signs of slowing inflation and worries about the state of the U.S. economy and job market. However, history suggests that investors may have been too eager to bet on sharply lower rates, meaning the scope for further declines for yields could be more limited — unless a recession arrives, Cicione said in a report shared with MarketWatch on Wednesday.
Bonds are back. Is it too late to chase the summer rally?
Government bonds are making a comeback in 2024 after a years-long bear market resulted in the longest stretch of price declines in recent memory.
1 day ago
By
Vivien Lou Chen
Long-dated Treasury yields finished lower for a fourth time in as many sessions on Wednesday, after July's consumer-price index largely came in as expected.
The 10-year yield fell 3.2 basis points to 3.821%, according to 3 p.m. Eastern time figures from Dow Jones Market Data. It has fallen 17.7 basis points over the past four trading days.
1 day ago
By
Vivien Lou Chen
The Dow Jones Industrial Average and S&P 500 shook off a brief bout of earlier weakness and were higher in Wednesday's final hour of trading, while the Nasdaq Composite was dragged down by names such as Alphabet and Tesla.
The Dow Jones Industrial Average was on its way toward a second straight day of gains after July's consumer-price index came in mild. The S&P 500 appeared poised for a fifth consecutive session of advances.
Meanwhile, the Nasdaq Composite seemed to be headed for its first drop in five sessions. The Justice Department is considering asking for a breakup of Alphabet, the parent company of Google, according to a report by Bloomberg News on Tuesday. Tesla failed to get a boost from Wednesday's favorable inflation data.
The Dow Jones Industrial Average was up 288 points, or 0.7%, at around 40,054.
The S&P 500 was up 20 points, or 0.4%, at about 5,455.
The Nasdaq Composite was down 18 points, or 0.1%, at roughly 17,169.
1 day ago
By
Tomi Kilgore
Deere & Co. reports fiscal third-quarter results before Thursday's open, and there's plenty of reason for investors to expect the worst.
The results come about two weeks after rivals agriculture equipment maker's Agco Corp. and CNH Industrial NV both cut their full-year outlooks.
Meanwhile, Deere has cut its full-year guidance the past two quarters.
And, for the past five quarters, Deere's stock has dropped on the day earnings were reported, by an average of about 4%.
"We haven't fielded too many in-bounds [calls] from investors who are bullish near term, despite the shares’ recent pullback, suggesting tactical positioning remains short into the print," J.P. Morgan analyst Tami Zakaria wrote in a note to clients.
The stock has tumbled 10.8% since May 16, when Q2 results were reported, while the S&P 500 has gained 2.9% over the same time.
Perhaps that's a good thing, from a contrarian's perspective. Zakaria said, amid the bearish set up, the likelihood of coming Fed rate cuts could and expectations of production volume growth in the year ahead should help support the stock.
1 day ago
By
Frances Yue
Bitcoin is likely to continue to trade in the range of $50,000 to $70,000 through November, barring any major unexpected events, according to Alex Thorn, head of firmwide research at crypto asset manager Galaxy Digital Holdings.
Thorn said that in the coming months, moves in crypto prices will likely be driven by macroeconomic conditions, updates on November’s U.S. presidential election, and some digital-asset-specific occurences such as repayments to creditors by the bankrupt crypto exchanges FTX and Mt. Gox.
Bitcoin will likely remain lackluster through November. Watch these 3 catalysts.
A weekly look at the most important news and moves in crypto, and what’s on the horizon in digital assets.
1 day ago
By
Isabel Wang
The S&P 500's consumer-staples sector was rising 0.6% on Wednesday afternoon, helped by a more than 7% advance in Kellanova's stock after privately held candy company Mars announced a deal to acquire the Pringles maker in a nearly $36 billion deal.
The consumer-staples sector was on pace for a new all-time closing high, according to Dow Jones Market Data.
Shares of some other companies selling everyday household essentials were also advancing on Wednesday afternoon. Campbell Soup Co.'s stock was up 2.2%, while General Mills Inc. shares were popping 2.1%, according to FactSet data.
1 day ago
By
Ciara Linnane
As Kellanova's stock surged 7.7% Wednesday, buyers were also moving on its bonds, which had seen spreads tighten since the first reports emerged of a potential takeover by Mars.
Mars said earlier Wednesday that it's acquiring the snacks maker for $83.50 a share in cash in a deal valued at $35.9 billion that will help Mars address a gap in its own portfolio.
Spreads on Kellanova's 5.75% notes due May 2054 have tightened by almost 20 basis points since the first report of the deal on Aug. 4, as the following chart from data-solutions provider BondCliQ Media Services shows.
Much of the early buying was concentrated in that series.
Kellanova has almost $6 billion of outstanding bonds, with $750 million worth due to mature in 2026.
1 day ago
By
Vivien Lou Chen
Long-dated government debt rallied on Wednesday, sending 10- and 30-year yields lower after they briefly spiked following the release of July's consumer-price index.
The 10-year yield fell to around 3.82% while the 30-year rate was down at roughly 4.12% in New York afternoon trading. Meanwhile, the policy-sensitive 2-year yield held steady at around 3.95%.
2-year Treasury yield holds steady after July’s mild CPI report
The policy-sensitive 2-year Treasury yield turned little changed on Wednesday after July’s consumer-price index mostly met expectations.
1 day ago
By
Vivien Lou Chen
The Nasdaq Composite turned lower again in Wednesday's afternoon trading as the S&P 500 attempted to hold onto gains from earlier in the day, leaving major indexes mixed.
The Nasdaq was down 45 points, or almost 0.3%, at 17,142, while the S&P 500 was up by only 5 points, or 0.1%, at around 5,440.
Investors have been in the process of shifting their attention away from inflation and moving toward a focus on the U.S. labor market and any signs of economic weakness.