Global markets drop as investors wait for clues on next interest rate cuts

Related Story: ‘Spiral of political uncertainty’: Italy’s PM resigns after lashing out at deputy Related Story: Global recession fears see $60 billion wiped from Australian stock market

Stock exchanges fell across the globe ahead of a key central bankers’ conference in the United States — just as they had nearly recovered from last week’s market carnage.

Investors will be paying close attention to any hints given about future interest rate cuts at the annual Jackson Hole Economic Policy Symposium, in Wyoming.

Reserve Bank of Australia governor Philip Lowe and US Federal Reserve chairman Jerome Powell will speak at the end of this week — with this year’s theme being the challenges for monetary policy.

“Everyone is waiting for Jackson Hole,” said Jim Awad, senior managing director at Clearstead Advisors.

“It’s a wait-and-see attitude until Friday.”

Market snapshot at 7:50am (AEST):ASX SPI futures -0.7pc at 6,454, ASX 200 (Tuesday’s close) +1.2pc at 6,545AUD: 67.74 US cents, 56.06 British pence, 60.99 euro cents, 71.87 Japanese yen, $NZ1.05US: Dow Jones -0.7pc at 25,962, S&P 500 -0.8pc at 2,901, Nasdaq -0.7pc at 7,949Europe: FTSE 100 -0.9pc at 7,125, DAX -0.6pc at 11,651, CAC -0.5pc at 5,345, Euro Stoxx 50 -0.6pc at 3,350Commodities: Brent crude +0.6pc at $US60.12/barrel, spot gold +0.8pc at $US1,507.15/ounce, iron ore -0.5pc at $US87.94/tonne Market recovery hits a roadblock

Weighed by the prospect of even lower interest rates, bank shares experienced the steepest falls on Wall Street and on European stock markets.

The Dow Jones index snapped its three-day winning streak, sliding 173 points (or 0.7 per cent) to 25,962.

The broader S&P 500 dropped 0.8 per cent, while the tech-heavy Nasdaq lost 0.7 per cent.

European markets also tumbled, with steep losses for London’s FTSE 100 (-0.9pc) and Rome’s FTSE

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Trump confirms he's considering a payroll tax cut amid mounting economic concerns

Trump’s remarks came one day after The Washington Post reported that several senior White House officials had begun discussing such a move.

“Payroll tax is something that we think about, and a lot of people would like to see that, and that very much affects the workers of our country,” Trump said Tuesday during an exchange with reporters at the White House.

The White House had previously disputed that a payroll tax was under consideration. But Trump said it is something he has considered, as well as other ideas, such as broadening capital gains tax benefits for many investors.

Trump’s comments pulled back the curtain on a freewheeling policy process within the White House. Senior administration officials are both trying to assess the real weaknesses in the economy while also determining whether they should take any steps to intervene before the 2020 elections. Trump and many of his advisers believe the economy’s strength could be key to his political success.

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One of his top Democratic rivals, Sen. Elizabeth Warren of Massachusetts, has argued that Trump’s handling of the economy has been irresponsible and will push the U.S. into a recession. And former vice president Joe Biden has said Trump has botched a trade war with China in a way that has hurt many U.S. companies.

Last week, White House officials fervently rejected any sense that the economy was weakening, even in the face of numerous signals that the U.S. and global economy had begun to slow. Instead, they blasted the Federal Reserve, alleging that any weakness in the economy was the fault of central bankers who had raised interest rates last year.

In the past few days, however, a new process has kicked off within the West

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Fed's Daly Doesn't See a US Recession on the Horizon

The U.S. economy doesn’t appear to be headed toward a recession, Federal Reserve Bank of San Francisco President Mary Daly said.

“When I look at the data coming in, I see solid domestic momentum that points to a continued economic expansion,” Daly wrote Tuesday in a post on Quora.com, citing data on labor markets and consumer spending.

“But considerable headwinds, like weaker global growth and trade uncertainties, have emerged — and they’re contributing to this fear we see in the markets that a downturn is right around the corner,” she said. “So one thing I’m looking closely at is whether the mood gets so out of sync with the data that the fear of recession becomes a self-fulfilling prophecy.”

Fed officials cut interest rates on July 31, marking the first reduction since the financial crisis 10 years ago, and signaled more easing may be coming. Fed Chair Jerome Powell is set to speak Friday at the central bank’s annual conference in Jackson Hole, Wyoming, and investors will be listening to see whether he ratifies expectations for further moves in coming months.

So far, easier Fed policy has not been enough to allay concerns about the prospects for the economy. Daly’s comments echo those of White House advisers including Larry Kudlow and Peter Navarro, who took to television over the weekend to downplay recession fears after a volatile week in financial markets — which included the largest single-day decline of the year for the Dow Jones Industrial Average.

“I do believe this was an appropriate recalibration of policy in response to the headwinds we’re facing — along with inflation rates that continue to come in under our 2% target,” Daly said. “However, I should stress that my support for this cut is based around my desire to see our economic expansion

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Earnings numbers a drag on stocks

Stocks fell broadly on Wall Street Tuesday after another slide in bond yields and a mixed batch of corporate earnings weighed on the market.

The selling pulled every major sector lower, snapping a three-day winning streak for the S&P 500.

Financial sector stocks bore the brunt of the decline as investors reacted to lower yields. Technology stocks, which like banks have tended to lead the market’s gains recently, gave up an early gain.

Home Depot climbed after the home improvement retailer reported earnings that topped Wall Street’s forecasts. But two other big retailers didn’t fare as well. Investors sent Kohl’s and TJX lower after their latest quarterly report cards fell short of analysts’ expectations.

Tuesday’s market slide is the latest twist for stocks, which have been caught in the grips of volatile trading all month as anxious investors alternate between seeking shelter in bonds and pouncing on stocks when prices slump.

“The market is taking a little bit of a breather here,” said Tony Roth, chief investment officer at Wilmington Trust. “You’re getting just a little bit of consolidation after the rally we’ve had over the last three or four days.”

The S&P 500 fell 23.14 points, or 0.8 percent, to 2,900.51. The Dow Jones Industrial Average slid 173.35, or 0.7 percent, to 25,962.44. The Nasdaq, which is heavily weighted with technology stocks, dropped 54.25, or 0.7 percent, to 7,948.56. The Russell 2000 index of smaller company stocks gave up 10.84 points, or 0.7 percent, to 1,498.01.

All four indexes are on track to finish the month with losses.

The market has been highly volatile all month as investors try to parse conflicting signals on the U.S. economy and determine whether a recession is on the horizon. A key concern is that the escalating and costly trade conflict between the

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Walmart sues Tesla over solar-panel rooftop fires

Walmart Inc. is suing Tesla Inc. over a spate of roof fires at several Walmart stores that the retailer alleges were caused by Tesla solar panels.

Walmart WMT, -1.55%  is suing for breach of contract and alleges “gross negligence” on Tesla’s TSLA, -0.43%  part for the fires, which it says all started on the rooftops of several stores in California, Maryland and Ohio that had Tesla solar panels.

“To state the obvious, properly designed, installed, inspected, and maintained solar systems do not spontaneously combust, and the occurrence of multiple fires involving Tesla’s solar systems is but one unmistakable sign of negligence by Tesla,” according to the complaint filed on Tuesday.

Related: Tesla slips to third place for solar installations in the U.S., Sunrun keeps lead

Tesla did not immediately return a request for comment. A Walmart spokesperson said it had “nothing more to add” beyond the complaint.

Tesla bought SolarCity Corp. in June 2016 for $2.6 billion. At the time, SolarCity was the largest U.S. home-solar-panel installer, and Tesla Chief Executive Elon Musk was then chairman and largest shareholder of both companies. SolarCity was founded and run by two of Musk’s cousins, who later left the business. Some Tesla shareholders sued over the acquisition, and that case is due to go to trial in March 2020.

Walmart’s lawyers took a swipe at the deal in the Tuesday complaint.

“On information and belief, when Tesla purchased SolarCity to bail out the flailing company (whose executives included two of Tesla CEO Elon Musk’s first cousins), Tesla failed to correct SolarCity’s chaotic installation practices or to adopt adequate maintenance protocols, which would have been particularly important in light of the improper installation practices.”

According to the complaint, the stores affected were among the more than 240 Walmart stores that had leased or licensed

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Stocks threaten to break three-day rally as Wall Street waits to see how quickly Fed will cut rates

Stocks close down breaking three-day rally as Wall Street waits to see how quickly Fed will cut ratesStocks closed slightly down on Tuesday after a three-day rallyAll eyes are on the Fed for signals later this week on a rate cutFed will release minutes from July policy meeting on Wednesday 

U.S. stocks closed down slightly on Tuesday after three sessions of gains, as investors held their breath waiting for signals on rate cuts from the Federal Reserve.

The S&P 500 fell 23 points, or 0.8%, to 2,900. The Dow Jones Industrial Average lost 173 points, or 0.7%, to 25,962. The Nasdaq fell 54 points, or 0.7%, to 7,948.

All eyes this week will be on Wednesday’s release of minutes from the Federal Reserve’s July policy meeting and Chair Jerome Powell’s speech on Friday at the Jackson Hole central bankers’ conference.

Powell’s remarks will be closely monitored for hints if more policy easing is in store, against the backdrop of an ongoing trade war and growing fears of recession, signaled by the inversion of the U.S. yield curve last week.

A trader reads the newspaper and blows a bubble on the floor of the New York Stock Exchange at the opening bell on Monday in New York City

The selling pulled every major sector lower on Tuesday, snapping a three-day winning streak for the S&P 500.

Banks took the biggest losses as investors reacted to another drop in long-term bond yields.

The yield on the 10-year Treasury note slipped to 1.55% from 1.59% late Monday.

Lower bond yields mean lower interest rates on loans and lower profits for banks. Bank of America dropped 2%.  

Still, the

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Dow Jones Industrial Average Jumps on Trade Deal Hopes, China Stimulus – Barron's

Illustration by Michael George Haddad

Rising Hope. The three major U.S. stock market indexes were up solidly early afternoon on optimism for a U.S.-China trade deal as China took steps to boost its economy and Germany considers stimulus measures.

The Dow Jones Industrial Average was 266 points, or 1%. The S&P 500 was up 1.2% and the Nasdaq Composite gained 1.5%.

Midday Movers

Estée Lauder (ticker: EL) was up 10.1% after the cosmetics maker beat analysts estimates for its fiscal fourth-quarter and increased its guidance.

Wynn Resorts (WYNN) rose 7.1% on trade talk optimism and a Nomura estimate that Macau gambling receipts rose last week despite the protests in Hong Kong.

Nvidia (NVDA) gained 5.8% after the chip company said it was working with Microsoft (MSFT) to roll out a free update that would improve visuals for Minecraft players.

Tapestry (TPR) was up 5.8% as the stock of the owner of the Coach and Kate Spade brands bounced off its lowest point in years over trade-talk optimism and hope that weakness at Kate Spade will reverse.

Amgen (AMGN) fell 1% after the stock was cut from buy to neutral at Mizuho Securities because of concerns over valuation.

Write to Ben Walsh at [email protected]

Read More Here...

Dow Jones Industrial Average Jumps on Trade Deal Hopes, China Stimulus – Barron's

Illustration by Michael George Haddad

Rising Hope. The three major U.S. stock market indexes were up solidly early afternoon on optimism for a U.S.-China trade deal as China took steps to boost its economy and Germany considers stimulus measures.

The Dow Jones Industrial Average was 266 points, or 1%. The S&P 500 was up 1.2% and the Nasdaq Composite gained 1.5%.

Midday Movers

Estée Lauder (ticker: EL) was up 10.1% after the cosmetics maker beat analysts estimates for its fiscal fourth-quarter and increased its guidance.

Wynn Resorts (WYNN) rose 7.1% on trade talk optimism and a Nomura estimate that Macau gambling receipts rose last week despite the protests in Hong Kong.

Nvidia (NVDA) gained 5.8% after the chip company said it was working with Microsoft (MSFT) to roll out a free update that would improve visuals for Minecraft players.

Tapestry (TPR) was up 5.8% as the stock of the owner of the Coach and Kate Spade brands bounced off its lowest point in years over trade-talk optimism and hope that weakness at Kate Spade will reverse.

Amgen (AMGN) fell 1% after the stock was cut from buy to neutral at Mizuho Securities because of concerns over valuation.

Write to Ben Walsh at [email protected]

Read More Here...

Dow Jones Industrial Average Jumps on Trade Deal Hopes, China Stimulus – Barron's

Illustration by Michael George Haddad

Rising Hope. The three major U.S. stock market indexes were up solidly early afternoon on optimism for a U.S.-China trade deal as China took steps to boost its economy and Germany considers stimulus measures.

The Dow Jones Industrial Average was 266 points, or 1%. The S&P 500 was up 1.2% and the Nasdaq Composite gained 1.5%.

Midday Movers

Estée Lauder (ticker: EL) was up 10.1% after the cosmetics maker beat analysts estimates for its fiscal fourth-quarter and increased its guidance.

Wynn Resorts (WYNN) rose 7.1% on trade talk optimism and a Nomura estimate that Macau gambling receipts rose last week despite the protests in Hong Kong.

Nvidia (NVDA) gained 5.8% after the chip company said it was working with Microsoft (MSFT) to roll out a free update that would improve visuals for Minecraft players.

Tapestry (TPR) was up 5.8% as the stock of the owner of the Coach and Kate Spade brands bounced off its lowest point in years over trade-talk optimism and hope that weakness at Kate Spade will reverse.

Amgen (AMGN) fell 1% after the stock was cut from buy to neutral at Mizuho Securities because of concerns over valuation.

Write to Ben Walsh at [email protected]

Read More Here...

Dow Jones Industrial Average Jumps on Trade Deal Hopes, China Stimulus – Barron's

Illustration by Michael George Haddad

Rising Hope. The three major U.S. stock market indexes were up solidly early afternoon on optimism for a U.S.-China trade deal as China took steps to boost its economy and Germany considers stimulus measures.

The Dow Jones Industrial Average was 266 points, or 1%. The S&P 500 was up 1.2% and the Nasdaq Composite gained 1.5%.

Midday Movers

Estée Lauder (ticker: EL) was up 10.1% after the cosmetics maker beat analysts estimates for its fiscal fourth-quarter and increased its guidance.

Wynn Resorts (WYNN) rose 7.1% on trade talk optimism and a Nomura estimate that Macau gambling receipts rose last week despite the protests in Hong Kong.

Nvidia (NVDA) gained 5.8% after the chip company said it was working with Microsoft (MSFT) to roll out a free update that would improve visuals for Minecraft players.

Tapestry (TPR) was up 5.8% as the stock of the owner of the Coach and Kate Spade brands bounced off its lowest point in years over trade-talk optimism and hope that weakness at Kate Spade will reverse.

Amgen (AMGN) fell 1% after the stock was cut from buy to neutral at Mizuho Securities because of concerns over valuation.

Write to Ben Walsh at [email protected]

Read More Here...