Stocks Rise After Fed Chairman's Testimony

By Jon Sindreu and Jon Sindreu The Wall Street Journal Biography Allison Prang Allison Prang The Wall Street Journal Biography Updated July 17, 2018 5:29 p.m. ET 1 COMMENTS

U.S. stocks rose Tuesday following Federal Reserve Chairman Jerome Powell’s Senate testimony, while investors also continued dissecting the latest round of corporate earnings results.

The Dow Jones Industrial Average added 55.53 points, or 0.2%, to 25119.89. The S&P 500 rose 11.12 points, or 0.4%, to 2809.55, and the technology-focused Nasdaq Composite climbed 49.40 points, or 0.6%, to 7855.12.

Mr. Powell told Congress that strong economic growth and stable inflation should keep the central bank on track to gradually raise short-term interest rates.

He added he wants inflation to stay around 2% and that the economy is “just shy” of hitting that point. He also touched on trade tensions, saying he thought countries that are open to trade have grown more quickly and commented on the new tax law, saying it was too early to see its impact.

Mr. Powell’s remarks were made before the Senate Banking Committee as part of his semiannual monetary policy report. Derivatives markets were pricing in a 62% chance that rates will rise at least twice more this year, according to data by CME Group.

Fed Chairman Jerome Powell arriving to testify before the Senate Banking Committee Tuesday. Photo: Jose Luis Magana/Associated Press

Quincy Krosby, chief market strategist for Prudential Financial, said Mr. Powell’s comments demonstrated the Fed is following

Read More Here...

Stocks Rise After Fed Chairman's Testimony

By Jon Sindreu and Jon Sindreu The Wall Street Journal Biography Allison Prang Allison Prang The Wall Street Journal Biography Updated July 17, 2018 5:29 p.m. ET 1 COMMENTS

U.S. stocks rose Tuesday following Federal Reserve Chairman Jerome Powell’s Senate testimony, while investors also continued dissecting the latest round of corporate earnings results.

The Dow Jones Industrial Average added 55.53 points, or 0.2%, to 25119.89. The S&P 500 rose 11.12 points, or 0.4%, to 2809.55, and the technology-focused Nasdaq Composite climbed 49.40 points, or 0.6%, to 7855.12.

Mr. Powell told Congress that strong economic growth and stable inflation should keep the central bank on track to gradually raise short-term interest rates.

He added he wants inflation to stay around 2% and that the economy is “just shy” of hitting that point. He also touched on trade tensions, saying he thought countries that are open to trade have grown more quickly and commented on the new tax law, saying it was too early to see its impact.

Mr. Powell’s remarks were made before the Senate Banking Committee as part of his semiannual monetary policy report. Derivatives markets were pricing in a 62% chance that rates will rise at least twice more this year, according to data by CME Group.

Fed Chairman Jerome Powell arriving to testify before the Senate Banking Committee Tuesday. Photo: Jose Luis Magana/Associated Press

Quincy Krosby, chief market strategist for Prudential Financial, said Mr. Powell’s comments demonstrated the Fed is following

Read More Here...

GRAINS-Wheat jumps more than 1 pct to hit 8-day high

SYDNEY, July 18 (Reuters) – U.S. wheat futures rose more than 1 percent on Wednesday as dry weather in key global producers pushed prices to an eight-day high. FUNDAMENTALS * The most active wheat futures on the Chicago Board Of Trade were up 1.4 percent at $5.04-3/4 a bushel by 0104 GMT, near the session high of $5.05 a bushel, the highest since July 10. Wheat closed up 1.9 percent on Tuesday. * The most active soybean futures were up 0.8 percent to $8.62 a bushel, having firmed 1.1 percent on Tuesday. * The most active corn futures were up 0.7 percent to $3.62-1/4 a bushel – the highest since July 12. Corn gained 1.3 percent in the previous session. * Wheat drew support from dry weather in Europe and Australia, weighing on production prospects. * Germany, Poland and Ukraine are among the European countries where dry weather is threatening wheat harvests. * The U.S. Department of Agriculture said on Monday that 69 percent of the soybean crop and 72 percent of corn were in good to excellent condition. That was down from 71 percent and 75 percent a week earlier, respectively. * Chinese buyers have loaded up on soybeans from Brazil, instead of the United States, because of tariffs on U.S. soy that were threatened for weeks and enacted on July 6. MARKET NEWS * The dollar was broadly higher on Wednesday, hitting a six-month high against the yen, after Federal Reserve Chairman Jerome Powell gave an upbeat outlook for the U.S. economy and reinforced views that the Fed was on track to steadily hike interest rates. * Oil prices dropped on Wednesday after an industry group

Read More Here...

FOREX-Dollar up as Powell reinforces rate hike views,…

FOREX-Dollar up as Powell reinforces rate hike views, hits 6-mth high vs yen

By Shinichi Saoshiro

TOKYO, July 18 (Reuters) – The dollar was broadly higher on Wednesday, hitting a six-month high against the yen, after Federal Reserve Chairman Jerome Powell gave an upbeat outlook for the U.S. economy and reinforced views that the Fed was on track to steadily hike interest rates.

In closely watched congressional testimony on Tuesday, Powell said he saw the United States on course for years more of steady growth, while largely discounting the risks associated with a trade war.

The dollar was up 0.05 percent at 112.97 yen after going as high as 113.08, its strongest since January 9.

The euro was 0.05 percent lower at $1.1655 after losing 0.4 percent overnight.

“The dollar stands to gain further, particularly against the yen, with risk aversion in the equity markets petering out,” said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.

“And while long-term Treasury yields are not rising prominently, this is a reflection of investor demand for U.S. assets that generates a degree of dollar-buying.”

Wall Street stocks rose on Tuesday, with the Dow Jones Industrial Average posting its fourth consecutive session of gains after Powell’s optimistic analysis of the U.S. economy.

The pound stood little changed at $1.3104 after slipping 1 percent the previous day.

In addition to the dollar’s broad strength, sterling has come under pressure from British politics.

The currency fell to a three-week low of $1.3068 overnight as investors expected more Brexit challenges after Theresa May’s government only narrowly won a parliamentary vote on post-Brexit trade with the European Union.

The dollar index against a basket

Read More Here...

A Whiff of Rotten Eggs May Augur an Oil Shock

What’s the most important element in global commodity markets right now? Carbon? Copper? Gold?

Wrong on all three counts. Sulfur — the yellow, infernal substance that gives rotten eggs their smell and hardens the rubber in car tires — is quietly roiling the energy industry. The disruptions could reshape everything from Australian coal, to the diesel and gasoline in your car, to petcoke, a coal-like residue of oil refining burned in India power stations.

If oil prices rise from their current levels of $74 a barrel to $400 or more in 2020 — a situation predicted by analyst Philip Verleger that would almost certainly trigger a global recession — you’ll have sulfur to thank.

The reason sulfur is important isn’t that the world is running short. Quite the opposite: There’s enough locked away in the world’s fossil fuel deposits to feed current levels of demand for more than 7,000 years. The problem is that there’s too much of it.

The proximate issue centers on the world’s shipping fleet. Atmospheric levels of sulfur dioxide have been falling since the early 1980s, when fears around acid rain, asthma and heart disease saw coal-fired power plants install scrubbers to remove the pollutant from their smokestacks. The maritime industry, however, has been stuck in the past.

For years, cargo ships have been powered by about 4 million barrels a day of the dirtiest, bottom-of-the-barrel fraction of crude, a tarry substance known as bunker fuel or residual fuel oil. That’s set to change in less than 18 months, after the International Maritime Organization adopted rules that would keep the sulfur content of the bunker fuel on standard ships below 0.5 percent from Jan. 1, 2020.

That’s a problem, because almost two-thirds of the world’s crude oil production is in medium sour and sour grades that are at least 0.5 percent sulfur (the “sweet” grades like

Read More Here...

U.S. stocks rebound as tech and household goods companies rise

Updated 2 hours ago

NEW YORK — U.S. stocks rallied Tuesday as retailers, technology and household goods companies all made solid gains and helped the market shake off a weak start. Netflix slumped after investors were disappointed with the streaming video company’s subscriber growth.

Stocks skidded at the start of trading as investors sold some of their recent favorites including Facebook and Apple. But those stocks later recovered and Netflix narrowed its losses. Technology companies also turned higher and strong results from Johnson & Johnson pulled health care stocks upward.

Federal Reserve Chairman Jerome Powell delivered a positive view of the economy as he told Congress that he expects the Fed to keep gradually raising interest rates. Powell said the Fed believes the economy will stay strong and inflation will remain at around 2 percent for the next few years. Stocks have fallen previous times that Powell gave major addresses, but they didn’t do so on Tuesday.

Investors focused on company earnings, which aside from Netflix were mostly good. Financial services company Charles Schwab and regional bank Comerica both rose.

“Double-digit earnings growth for this quarter and this full calendar year remains on track, and a 10 percent gain in earnings next year is also still doable,” said Sam Stovall, chief investment strategist for CFRA.

While investors have been buying U.S. stocks and selling foreign indexes this year, Stovall said earnings growth for companies in overseas markets will probably improve in 2019 while U.S. profit growth slows down. That could make non-U.S. markets more appealing.

The S&P 500 index rose 11.12 points, or 0.4 percent, to 2,809.55 after it dropped 9 points at the start of trading. The Dow Jones Industrial Average gained 55.53 points, or 0.2 percent, to 25,119.89. The Nasdaq composite jumped 49.40 points, or 0.6 percent, to

Read More Here...

Nasdaq hits record high, boosted by Facebook, Google and Amazon

Wall Street and European markets made solid gains overnight, and Australian shares are expected to follow their positive momentum.

Markets at 7:30am (AEST):ASX SPI 200 futures +0.4pc to 6,180, ASX 200 (Tuesday’s close) -0.6pc at 6,204AUD: 73.84 US cents, 56.3 British pence, 63.31 Euro cents, 83.36 Japanese yen, $NZ1.09US: Dow Jones +0.2pc at 25,120, S&P 500 +0.4pc at 2,810, Nasdaq +0.6pc at 7,855Europe: FTSE +0.3pc at 7,626, DAX +0.8pc at 12,662, CAC +0.2pc to 5,423, Euro Stoxx 50 +0.2pc at 3,458Commodities: Brent crude -0.3pc at $US71.60/barrel, spot gold -1pc at $US1,227.12/ounce, iron ore -0.8pc at $US64.07/tonne

The Nasdaq was the best-performing US index, lifting 0.6 per cent to a fresh record, thanks to Facebook (+1.3pc), Google (+1.4pc), and Amazon (+1.2pc) shares hitting record highs.

The Dow Jones index ended 0.2 per cent higher at 25,119, while the S&P 500 lifted 0.4 per cent.

Netflix was the biggest drag on the Nasdaq — with its share price falling 5.2 per cent after it reported quarterly subscriber growth figures that fell below market expectations.

But the TV streaming company’s losses were even steeper earlier in the session, plunging by as much as 14 per cent.

Goldman Sachs stocks fell 0.2 per cent despite the investment bank reporting better-than-expected earnings. Goldman also said its departing chief executive Lloyd Blankfein would be replaced by David Solomon.

Fed sees strong jobs and low inflation

Overall market sentiment was boosted by the optimistic comments of Federal Reserve chair Jerome Powell overnight, regarding the strength of the US economy.

“With appropriate monetary policy, the job market will remain strong and inflation will stay near 2 per cent over the next several years,” Mr Powell said in prepared remarks to the US Senate Banking Committee.

He also largely discounted the risks of a trade war,

Read More Here...

Nasdaq hits new high, boosted by tech stocks

Wall Street and European markets made solid gains overnight, and Australian shares are expected to follow their positive momentum.

Markets at 7:30am (AEST):ASX SPI 200 futures +0.4pc to 6,180, ASX 200 (Tuesday’s close) -0.6pc at 6,204AUD: 73.84 US cents, 56.3 British pence, 63.31 Euro cents, 83.36 Japanese yen, $NZ1.09US: Dow Jones +0.2pc at 25,120, S&P 500 +0.4pc at 2,810, Nasdaq +0.6pc at 7,855Europe: FTSE +0.3pc at 7,626, DAX +0.8pc at 12,662, CAC +0.2pc to 5,423, Euro Stoxx 50 +0.2pc at 3,458Commodities: Brent crude -0.3pc at $US71.60/barrel, spot gold -1pc at $US1,227.12/ounce, iron ore -0.8pc at $US64.07/tonne

The Nasdaq was the best-performing US index, lifting 0.6 per cent to a fresh record, thanks to Facebook (+1.3pc), Google (+1.4pc), and Amazon (+1.2pc) shares hitting record highs.

The Dow Jones index ended 0.2 per cent higher at 25,119, while the S&P 500 lifted 0.4 per cent.

Netflix was the biggest drag on the Nasdaq — with its share price falling 5.2 per cent after it reported quarterly subscriber growth figures that fell below market expectations.

But the TV streaming company’s losses were even steeper earlier in the session, plunging by as much as 14 per cent.

Goldman Sachs stocks fell 0.2 per cent despite the investment bank reporting better-than-expected earnings. Goldman also said its departing chief executive Lloyd Blankfein would be replaced by David Solomon.

Fed sees strong jobs and low inflation

Overall market sentiment was boosted by the optimistic comments of Federal Reserve chair Jerome Powell overnight, regarding the strength of the US economy.

“With appropriate monetary policy, the job market will remain strong and inflation will stay near 2 per cent over the next several years,” Mr Powell said in prepared remarks to the US Senate Banking Committee.

He also largely discounted the risks of a trade war,

Read More Here...

Dollar firms after Fed chair's upbeat remarks, global stocks gain

NEW YORK (Reuters) – The U.S. dollar rose on Tuesday against a basket of major currencies following an upbeat economic assessment from the head of the U.S. Federal Reserve, while world stocks climbed as a heavy week of corporate earnings also kicked into gear.

Wall Street’s main indexes erased losses from the start of the session to end solidly positive. The U.S. two-year Treasury yield rose to its highest level in nearly a decade, with the yield curve at its flattest in nearly 11 years.

In testimony, Fed Chairman Jerome Powell said he sees the United States on track for years more of steady growth.

“He reiterated the view of the economy as being strong, growing at a solid pace with recent inflation data as more or less encouraging,” said Peter Cecchini, chief market strategist at Cantor Fitzgerald in New York.

Powell was challenged in a congressional hearing by senators worried the Trump administration’s trade policies were already damaging businesses.

Concerns over a global trade dispute have roiled markets over the past few months. But in written testimony to the Senate Banking Committee and in his response to questions about a possible “trade war,” Powell largely discounted the risks.

“He basically completely dismissed any concerns about a trade tariff war,” said Boris Schlossberg, director of FX strategy at BK Asset Management in New York.

The Dow Jones Industrial Average rose 55.53 points, or 0.22 percent, to 25,119.89, the S&P 500 gained 11.12 points, or 0.40 percent, to 2,809.55 and the Nasdaq Composite added 49.40 points, or 0.63 percent, to 7,855.12.

FILE PHOTO: Traders work at the post where UnitedHealth Group is traded on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 31, 2018. REUTERS/Brendan McDermid/File Photo

As a busy week of corporate earnings began, Netflix

Read More Here...

Dollar firms after Fed chair's upbeat remarks, global stocks gain

NEW YORK (Reuters) – The U.S. dollar rose on Tuesday against a basket of major currencies following an upbeat economic assessment from the head of the U.S. Federal Reserve, while world stocks climbed as a heavy week of corporate earnings also kicked into gear.

Wall Street’s main indexes erased losses from the start of the session to end solidly positive. The U.S. two-year Treasury yield rose to its highest level in nearly a decade, with the yield curve at its flattest in nearly 11 years.

In testimony, Fed Chairman Jerome Powell said he sees the United States on track for years more of steady growth.

“He reiterated the view of the economy as being strong, growing at a solid pace with recent inflation data as more or less encouraging,” said Peter Cecchini, chief market strategist at Cantor Fitzgerald in New York.

Powell was challenged in a congressional hearing by senators worried the Trump administration’s trade policies were already damaging businesses.

Concerns over a global trade dispute have roiled markets over the past few months. But in written testimony to the Senate Banking Committee and in his response to questions about a possible “trade war,” Powell largely discounted the risks.

“He basically completely dismissed any concerns about a trade tariff war,” said Boris Schlossberg, director of FX strategy at BK Asset Management in New York.

The Dow Jones Industrial Average rose 55.53 points, or 0.22 percent, to 25,119.89, the S&P 500 gained 11.12 points, or 0.40 percent, to 2,809.55 and the Nasdaq Composite added 49.40 points, or 0.63 percent, to 7,855.12.

FILE PHOTO: Traders work at the post where UnitedHealth Group is traded on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 31, 2018. REUTERS/Brendan McDermid/File Photo

As a busy week of corporate earnings began, Netflix

Read More Here...