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Goldman Is Quietly Handing Out A "Recession Manual" To Clients

Goldman Is Quietly Handing Out A "Recession Manual" To Clients Gradually we are getting to the point where the tire hits the road. Now that Wall Street is convinced that hawkish global central banks (the top risk in the latest BofA Fund Manager Survey) will spark a global recession (the second highest risk in the FMS)... ... and as a result, peak inflation is now consensus with a whopping net 68% of respondents - a record high - expect inflation rates to fall in the coming quarters... ... it seems that fears of stagflation are gradually giving way to something just as concerning: a global recession.  Of course, a global recession is not good for Wall Street business nor stock prices, which is why Wall Street was bound to stage a spirited defense against the reality that a recession has already started, at least until the NBER makes the current recession official, and is why we get defensive articles such as this one in Bloomberg from this morning: "Goldman, JPMorgan Strategists See Recession Fears as Overblown"... ... although one could be forgiven to take such pro-establishment propaganda seriously any more when a quick google search reveals farcical humor such as this from October. So realizing that most of its clients are sophisticated enough to see through its "base case" bullish, Goldman (if not JPMorgan) has already started setting the stage for what is coming, and two days after publishing a list of 20 stocks that should thrive in the "coming recession", Goldman has quietly started handing out a "Recession Manual" for US stocks (available to professional subscribers) to clients. To be sure, it's a recession which Goldman is pretty certain won't happen (if only not to piss off the Biden admin): as Goldman's chief equity strategist David Kostin hedges in the second sentence of the report, "our economists estimate a 35% probability that the US economy will enter a recession during the next two years and believe the yield curve is pricing a similar likelihood of a contraction." And yet, despite Goldman's best efforts to mitigate the painfully obvious endgame, the bank goes on to admit that rotations within the US equity market indicate that investors are pricing elevated odds of a downturn compared with the strength of recent economic data. One such place is the relative performance of cyclical stocks vs. defensive stocks which has declined by 17% since January (-19% vs. -2%). The relative performance of these two factors has closely tracked the level of the ISM index for more than a decade. The ISM currently stands at 55, but the relative performance of cyclicals vs. defensives would imply a level below 50, i.e. a contraction and thus, a recession. Additionally, Kostin reveals that dividend futures market implies S&P 500 dividends will decline by nearly 5% in 2023 (this matters because during the last 60 years, S&P 500 dividends have not declined outside of a recession). In other words, even though Goldman says that "a recession is not inevitable", it also admits that "clients are constantly asking what to expect from equities in the event of a recession." So what should Goldman clients expect? In its report, Goldman discusses how S&P 500 price, earnings, valuations, and sector and factor performance have fared in past recessions. And while there is a lot of information in the full report, we take a more detailed look at some of the report highlights starting with... Price: Across 12 recessions since World War II, the S&P 500 index has contracted from peak to trough by a median of 24%. A decline of this magnitude from the S&P 500 peak of nearly 4800 in January 2022 would bring the S&P 500 to approximately 3650 (11% below current levels). The average decline of 30% would reduce the S&P 500 to 3360 (-18% from today). Timing: Across the same 12 experiences since WWII, the equity market has begun to price a recession on average 7 months prior to the official start of the recession per NBER’s designation. In all but one instance, the sequence of events was the same: The market peaked prior to the recession and then bottomed prior to the end of the recession. As an aside, the 2000 recession was the only experience that departed from this pattern. Back then, the market continued to decline well after the economic recession ended, troughing a full 8 months after the recession ended and a full 30 months after its pre-recession peak. Labor Market: According to Goldman, bottom of the equity market has generally exhibited a relationship with the peak in weekly jobless claims. Since 1970, the S&P 500 has reached its local trough within weeks of the peak in weekly jobless claims. In most experiences, the market bottomed just before jobless claims reached their peak. That may be concerning because while claims just hit a 4 month high, at 218K, they have a long way to go to get back to historical average not to mention the records hit during the covid crash. Earnings: Since 1948, S&P 500 earnings have dropped from peak to trough around recessions by a median of 13%. EPS have recovered by a median of 17% four quarters after troughing. In terms of timing, recessions since 1990 provide a guide for the path of EPS revisions around a recession. During the last four recessions, the typical revision to consensus EPS estimates during the 6 months prior to the start of a recession has ranged from -6% to -18%, with a median of -10%. During the 6 months following the start of the recession, analysts reduced EPS estimates by an additional 13%. During the 12-month period surrounding the start of a recession, analysts reduced estimates by a median of 22%. Valuation: The S&P 500 forward P/E multiple has contracted by a median of 21% between its pre-recession peak and its eventual trough. During the typical recession since 1980, the index P/E multiple peaked 8 months in advance of the onset of a recession and declined by 15% between its pre-recession peak and the beginning of the recession. Sectors: During the 12 months before a recession, defensive sectors and “quality” factors have generally outperformed. Across 5 recessions since 1981, the average experience saw Energy, Consumer Staples, Health Care, and Utilities outperform the index. There is more in the full Goldman Recession Manual available to professional subscribers. Tyler Durden Thu, 05/19/2022 - 15:00.....»»

Category: worldSource: nyt8 hr. 45 min. ago Related News

Oil futures swing to higher close as stock-market selloff moderates

This is a Real-time headline. These are breaking news, delivered the minute it happens, delivered ticker-tape style. Visit www.marketwatch.com or the quote page for more information about this breaking news......»»

Category: topSource: marketwatch9 hr. 0 min. ago Related News

Nymex July WTI oil futures end at $109.89 a barrel, up $2.89, or 2.7%

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Category: topSource: marketwatch9 hr. 0 min. ago Related News

Gold futures rise about 1.4% Thursday, settling at $1,841.20 an ounce

This is a Real-time headline. These are breaking news, delivered the minute it happens, delivered ticker-tape style. Visit www.marketwatch.com or the quote page for more information about this breaking news......»»

Category: topSource: marketwatch9 hr. 16 min. ago Related News

Metals Stocks: Gold futures end higher, book best daily gain in a month as inflation weighs on stocks

Gold futures booked big gains on Thursday, as the yellow metal benefited from risk aversion in the wake of the worst day for U.S. stocks in nearly two years......»»

Category: topSource: marketwatch9 hr. 48 min. ago Related News

Gold posts best daily gain in a month on Thursday

Gold futures bounced on Thursday as a selloff in stocks continued after a string of disappointing retailer earnings kept investors on edge about the effects of inflation on the economy. Gold futures rose $25.30, or 1.4%, to settle at $1,841.20 an ounce, the best daily percentage rise for the most-active contract since April 12, according to FactSet data. The dollar's surge to about 20 year highs also pulled back on Thursday, with the ICE US Dollar index off 1%. A stronger dollar can be a negative for commodities priced in the unit, making them more expensive to users of other currencies. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatch10 hr. 0 min. ago Related News

Lumber prices fall to new 2022 low as April existing home sales hit lowest level since the start of the pandemic

"It looks like more [home sales] declines are imminent in the upcoming months, and we'll likely return to the pre-pandemic home sales activity." Newsday LLC / Contributor/Getty ImagesLumber prices fell to a new 2022 low on Thursday after existing home sales showed a slowdown in April.Lumber futures fell as much as 6% to below $700 per thousand board feet, according to data from Finviz. Existing home sales fell for a third straight month in April to its lowest level since the start of the pandemic as supply remains constrained.Lumber prices fell to a new 2022 low on Thursday after existing home sales data showed a continued slowdown in the housing market.Lumber futures fell as much as 6% to below $700 per thousand board feet, its lowest level since November according to data from Finviz. The weakness in lumber can be attributed to a sharp rise in mortgage rates, which remain above 5% and have led to a slowdown in demand for homes from buyers. April existing home sales fell for the third straight month, dropping 2.4% from March levels, and down 5.9% from a year ago to a seasonally adjusted annual rate of 5.61 million. Due to the drop in demand, inventory of unsold existing homes climbed to 1.03 million by the end of April. But while supply of homes is slowly on the rise, home prices are still moving higher, albeit at a slowing pace. The median existing home sale price increased 14.8% year-over-year to $391,200, according to data from the National Association of Realtors."Higher home prices and sharply higher mortgage rates have reduced buyer activity. It looks like more declines are imminent in the upcoming months, and we'll likely return to the pre-pandemic home sales activity after the remarkable surge over the past two years," said Lawrence Yun, NAR's chief economist.First home buyers represented the largest share of home transactions in April, at 28%. All-cash sales accounted for 26% of home transactions last month, while individual investors or second-home buyers purchased 17% of the homes, according to data from NAR.The surge in mortgage rates and tight housing market supply is putting overall pressure on the essential building commodity that typically sees a seasonal boost during this time of the year. But recent comments from a home builder survey showed that demand could continue to fall for homes, and therefore lumber, as homebuyers have trouble stomaching such high mortgage rates.The average 30-year fixed mortgage rate fell to 5.25% from 5.30% this week, according to data from Freddie Mac. "Traffic has been cut in half since the hike in rates," one homebuilder in San Antonio said in a survey earlier this month. Another homebuilder in San Bernardino said, "Cancellations are starting to creep up due to loan declines and job losses. Waiting lists are certainly smaller. Saw an immediate change in buyer behavior when rates climbed over 5%." As long as mortgage rates stay elevated and the economy continues to show signs of slowing, it will be tough for lumber prices to reclaim the highs seen in 2021.FinvizRead the original article on Business Insider.....»»

Category: topSource: businessinsider10 hr. 31 min. ago Related News

Metals Stocks: Gold futures jump, aim for biggest daily rise in 2 months after stocks succumb to pressure

Gold futures saw big gains on Thursday, as the yellow metal benefited from risk aversion in the wake of the worst day for U.S. stocks in nearly two years......»»

Category: topSource: marketwatch12 hr. 0 min. ago Related News

Diesel Price Drop, Rising Inventories Suggest East Coast Relief Possible

Diesel Price Drop, Rising Inventories Suggest East Coast Relief Possible By John Kingston of FreightWaves Diesel consumers on the East Coast received some news Wednesday that may suggest an easing of the tight physical market squeeze in the region. There have been head fakes suggesting a softening of markets in the weeks since the East Coast diesel market ran away from the rest of the country. But they proved short-lived, as the weekly national average retail diesel price published Monday by the Energy Information Administration was $5.613 a gallon. The East Coast price was 33.1 cents more than that after a three-week increase that took the spread from 4.9 cents on April 25 up to 19.2 cents the following week and 28.4 cents a week later before the latest jump. Historically, the spread moved up and down over zero enough that it’s accurate to say there’s little difference between the two. The recent spread is an anomaly, albeit one that is costing drivers on the East Coast a lot of money. But among the data in the latest weekly report of the EIA released Wednesday, there were several numbers that suggest there is reason to think the squeeze might have become less severe. The key driver in the squeeze has been inventory levels on the East Coast. But the latest report shows inventories turning up. Inventories of ultra low sulfur diesel in what the EIA calls PADD 1 — the East Coast — rose 1.21 million barrels last week to 20.4 million barrels. PADD 1 inventories of ULSD on the East Coast had declined in 13 of the 15 previous weeks and had dropped six weeks in a row before the increase the EIA posted Wednesday. Inventories remain well below historic norms. If the bloated figures from 2020 are not counted, the average size of PADD 1 ULSD inventories in the second weekly report of May over the past five years is 36.8 million barrels. That means that even after the latest increase, East Coast ULSD inventories were just 55.4% of that five-year average. Prices in spot and futures markets also may be providing a glimmer of hope for consumers. ULSD settled Monday at $3.6681 a gallon, down 13.12 cents on the day. It’s the lowest settlement since April 12, and since the start of May, ULSD is down more than 53 cents, including a decline of more than 25 cents in just the past three trading days.  The decline also was notable because it outpaced the performance of crude and RBOB, an unfinished gasoline blendstock that is used as a proxy for gasoline trade. That trend has been in place for most of May. On the first trading day of the month, the value of a barrel of ULSD was about $69 more than the value of a barrel of Brent crude. That spread is down to about $47.65. The weekly data report had other figures that could signal the worst on the East Coast might be over, even if it has a long way to climb back toward some semblance of normalcy. U.S. refineries ran at 91.8% of capacity. It’s the highest level since August 2021. The nameplate figure for capacity used by the EIA has been reduced over the years, but it’s only down about 1% since last August. On the East Coast, refineries ran at a rate of 95%. East Coast refineries have not run at 95% or above since May 2018, and instances of it in general are rare. But it’s a very different world on the East Coast: Operable capacity back in 2018 was 1.224 million barrels a day. It is now listed as 818,000. Stocks of all distillates, which includes diesel but does not include jet fuel, rose to 105.3 million barrels, up from 104 million barrels nationwide a week earlier. Inventories of ULSD nationwide rose to 95.2 million barrels from 94.6 million, though with PADD 1 up more than 1 million barrels, math on the overall national increase means the country outside of PADD 1 declined. The total distillate in inventories rose even as the country was consuming more product. Products supplied in distillates — which is mostly diesel but includes some other products, such as heating oil — increased to 3.816 million barrels a day from 3.777 million a week earlier. It’s still down 243,000 barrels per day from a year ago, approximately 5.9%, though jet fuel, which pulls from the same pool of distillate feedstocks as diesel, has seen its consumption increase 439,000 barrels a day, a 37% jump. The total amount of distillate molecules being demanded across various applications is rising, and the rising inventory balances this week suggest those needs were met without a significant pull on stocks. Exports of distillates fell. Exports in the EIA weekly report are not broken out by specific product, such as ULSD. But exports of diesel have been cited as a cause of the East Coast squeeze. Total non-jet distillate exports fell to just over 1 million barrels per day last week. It’s the lowest export figure in the last eight weekly reports, where exports a month ago got up to 1.74 million barrels a day. Partly offsetting that, however, is that imports of ULSD — specific import figures are available by category of product, unlike exports — were at the fourth-lowest weekly level they’ve seen all year. “Distillate exports were strong up until this week and refinery runs are up,” Stephen Jones of Argus Media said. Despite speculation about demand destruction, Jones noted that demand figures in the EIA report were up about 1% from the prior week.  Jones said that in addition to higher refinery runs in the U.S., European refinery runs are running about 1.5 million to 2 million barrels a day more than they were in March and April. The runs are being raised as the region deals with the impact of lost Russian oil because of sanctions, including the reduction in diesel exports from Russia. “They’re going to make more diesel and gasoline, and the sanctions may fall short and not have as big an impact on the loss of supply,” Jones said. “We could end up with significantly excess gasoline for the European market, and a well-supplied [European] distillate market.” In physical markets, the premium of East Coast diesel relative to Gulf Coast diesel narrowed for the second day in a row. According to benchmark administrator General Index, its assessment for ULSD in New York Harbor was roughly 22.25 cents more than the price in the Gulf Coast. A day earlier, it was 35.75 cents, which on the surface would suggest East Coast supplies easing relative to the Gulf Coast. However, that market last week did narrow for a few days before blowing back out. It opened the week at approximately a 66-cent spread in favor of the East Coast, per the General Index assessments, came in as tight as 33.5 cents and then blew back out to 76 cents Monday. The reversal has cut the spread by roughly 53 cents.  The various signs pointing downward in the diesel market have not yet made it to the pump. The DTS.USA data series in FreightWaves SONAR shows the national retail average rising to $5.621 a gallon Wednesday, up from $5.577 a week ago. But wholesale prices do react quickly to movements in the spot market for diesel. The national average wholesale diesel price reflected in the ULSDR.USA data series in SONAR was $4.234 per gallon Wednesday. It was $4.404 a gallon just two days earlier and was as high as $4.718 a gallon on May 3.  Retailers have been slow to move prices down, possibly because they have been so whipsawed by rapidly rising and falling prices that they are reluctant to follow all downward movements in wholesale prices. The end results, though, are strong retail margins, as evidenced in SONAR’s FUELS.USA data series, which at $1.387 a gallon Wednesday is significantly higher than normal rates near $1 to $1.05 a gallon. FUELS.USA represents a straight difference between wholesale and retail prices.  Tyler Durden Thu, 05/19/2022 - 11:25.....»»

Category: personnelSource: nyt12 hr. 15 min. ago Related News

Are Companies Signaling Recession Preparation?

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice. (Thursday Market Open) Wednesday’s sell-off may continue as equity index futures point to a lower open. The Dow Jones Industrial Average ($DJI) is on track for its 8th negative week in a row. However, there’s some hope for Thursday as the Cboe Market Volatility Index (VIX) jumped to 33 but pulled back premarket.   Potential Market Movers A couple of important economic announcements came out before the opening bell. First, jobless claims were higher than expected at 218,000, compared to the forecasted 200,000 and higher than the previous week’s 197,000. Next, the Philadelphia Fed Manufacturing Index came in much weaker than expected despite an increase in new orders. However, that index also reported a slowdown in capital expenditures. After the open, investors will see the existing home sales report. Housing market stocks took a hit on Wednesday after homebuilding data and mortgage applications declined. However, many companies seem to be gearing up for recession as they cut earnings outlooks as Walmart (NYSE: WMT) and Target (NYSE: TGT) have. Some employers are also changing hiring plans like Coinbase (NASDAQ: COIN) and Uber (NYSE: UBER) by revising hiring criteria or announcing hiring freezes. Others like Netflix (NASDAQ: NFLX) and Meta (NASDAQ: FB) have announced layoffs. Fortune is reporting that several tech companies, particularly tech startups, have already done layoffs as they find it more difficult to get additional funding. In fact, Cisco (NASDAQ: CSCO) announced plans to reduce its capital expenditures during its earnings announcement late Wednesday. In the commodity markets, crude oil futures and RBOB gasoline futures were respectively trading 1.75% and 3.50% lower before the opening bell. Traders are ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzinga12 hr. 30 min. ago Related News

Market Rout Extends With Futures Tumbling To Verge Of Bear Market

Market Rout Extends With Futures Tumbling To Verge Of Bear Market US stock futures slumped again, extending yesterday’s brutal selloff that erased $1.5 trillion in market value on concerns about everything from slowing growth, to Chinese lockdowns, to soaring inflation and tightening monetary policy. Contracts on the S&P 500 were down 1.2% 7:30 a.m. in New York, having earlier dropped to 3,856, one point away sliding 20% from January's all time highs, and triggering a bear market. The underlying index tumbled 4% on Wednesday, the most since June 2020, as consumer shares cratered after Target slashed its profit forecast due to a surge in costs. Nasdaq 100 futures were down 1.2%. 10Y TSY Yields slumped about 7bps, dropping to 2.833, while the dollar also dropped after yesterday's surge; bitcoin was flat around $29K. The retail rout continued on Thursday: shares of US retailers again tumbled in premarket trading amid growing worries over the impact of rising inflation and the ability of companies to pass on higher costs to consumers; with Bath & Body Works becoming the latest retailer to cut its guidance. Major technology and internet stocks were also down, pointing to further losses in major technology and internet stocks a day after the tech-heavy Nasdaq slumped to its lowest since November 2020. Apple (AAPL US) -1.2%, Microsoft (MSFT US) -1.2%, Meta Platforms (FB US) -1.1%, Netflix (NFLX US) -0.9% and Nvidia (NVDA US) -2.2% in premarket trading. US rail stocks may be in focus as Citi cuts ratings on Norfolk Southern (NSC US), Union Pacific (UNP US) and US Xpress Enterprises (USX US) to neutral from buy, while lowering 2023 estimates “across the board.”Here are some other notable movers: Cisco Systems (CSCO US) plunged 13% in premarket trading after the network-gear maker spooked investors with a warning that Chinese lockdowns and other supply disruptions would wipe out sales growth in the current quarter. Shares of networking equipment makers drop after Cisco cuts outlook, with Broadcom (AVGO US) -3.6% and Juniper Networks (JNPR US) -5.9% in premarket trading. Synopsys (SNPS US) rises 3.8% in premarket trading after the supplier of software used to design semiconductors boosted its profit and revenue guidance for the full year. Target (TGT US) shares fall 2.2% in premarket trading, Walmart (WMT US) -0.3%; Kohl’s (KSS US) is in focus after two senior executives depart Under Armour (UAA US) shares dropped as much as 6% in US premarket trading, with analysts saying that the departure of the sportswear maker’s CEO Patrik Frisk is a surprise and adds uncertainty. Bath & Body Works’s (BBWI US) outlook cut was a little greater than expected, though analysts noted that it was due to higher costs and investment. The company’s shares fell almost 4% in premarket trading. United Wholesale Mortgage (UWMC US) will struggle to main its 1Q earnings level in coming quarters, Piper Sandler says in a note downgrading the stock to underweight from neutral. Shares drop as much as 7% in US premarket trading. The S&P 500 is on track for its longest weekly losing streak since 2001 as traders flee risk assets over fears that the Federal Reserve will push the economy into a recession as it tries to curb inflation. The benchmark is close to falling into a bear market, after dropping 18% from a record high in January. "The US selloff was rather orderly and the market isn’t oversold, yet. That tells us that we are likely not at the bottom yet,” said Joachim Klement, head of strategy, accounting and sustainability at Liberum Capital. “Consumer sentiment remains depressed and we are seeing consumers retrenching on some discretionary spending.”  Speaking on Tuesday in his most hawkish remarks to date, Fed Chair Jerome Powell said the US central bank will keep raising interest rates until there is “clear and convincing” evidence that inflation is in retreat. JPMorgan's Marko Kolanovic, meanwhile, said - what else - that things can get better for US stocks. “There will be no recession this year, some summer increase in consumer activity on the back of reopening, China increasing monetary and fiscal measures,” he said.  Bolstering his opinion is a conviction that US inflation has probably peaked, or is about to do so, paving the way for a pullback in price pressures that will eventually allow the Federal Reserve to moderate the pace of monetary tightening.  "Since we are pricing in a growth scare but not yet a recession, we could see further downside in the coming weeks, but we are starting to price in a very negative picture already, suggesting we should, at some point, be closer to the bottom,” said Esty Dwek, chief investment officer at Flowbank SA. US stock investors are pricing in stronger odds of a recession than are evident from positive macroeconomic indicators, according to Goldman Sachs strategists. "A recession is not inevitable,” Goldman strategists led by David J. Kostin wrote in a note. “Rotations within the US equity market indicate that investors are pricing elevated odds of a downturn compared with the strength of recent economic data.” Bets that robust earnings can help investors weather this year’s turbulence were thrown in doubt after US consumer titans signaled growing impact of high inflation on margins and consumer spending. Meanwhile, Federal Reserve officials reaffirmed that tighter monetary policy lies ahead, and investors fretted over stagflation risks. “We are pricing in a growth scare,” Lori Calvasina, the head of US equity strategy at RBC Capital Markets, told Bloomberg TV. “There is a lot of uncertainty in this market right now about whether or not that recession is going to come through or if it’s going to be another near-death experience.” There was some more good news on the China covid lockdown front: Shanghai Vice Mayor said Shanghai port throughput recovered to around 90% of the levels a year ago and that Shanghai will expand work resumption in areas with no COVID risk in early June. Furthermore, Shanghai is to gradually restore inter-district public transport from May 22nd and will require residents to show negative PCR tests taken within 48 hours before using public transport, while an economy official said Shanghai will reduce rents for small and medium-sized enterprises by more than CNY 10bln and the city extended CNY 72.3bln of loans to over 10,000 firms since March, according to Reuters. In Europe, the Stoxx 600 retreated 1.8%, after sliding more than 2% earlier, with all industry sectors in the red and personal care and financial services leading the decline as Wednesday’s retailer trouble in the U.S. spills over into Europe. FTSE 100 lags regional peers, dropping 2%. Here are some of the biggest European movers today: HomeServe shares jump as much as 12% after Brookfield agrees to buy the home emergency and repair services company for GBP4.1b. Societe Generale shares rise as much as 1.5%, as it was raised to outperform from market perform at KBW, with the broker saying the sale of Russian activities removes a key overhang for the bank and should result in a re-rating. Generali shares rose as much as 1.4% after 1Q profit beats analyst estimates as EU136m impairments on Russian investments were more than offset by higher operating income. PGNiG shares rise as much as 6.2% after reporting 1Q results that, according to analysts, support Polish gas company’s outlook. Nestle shares drop as much as 5.3% after Bernstein downgraded the stock to market perform from outperform, saying the shares will “struggle” if market sentiment improves and investors exit havens. Royal Mail shares fall as much as 14% after the postal group’s FY results slightly missed estimates and analysts said its outlook is “disappointing.” National Grid shares fall as much as 2.5%, erasing gains from yesterday’s record high, after the utility company reported full-year results. Earlier in the session, shares of Asian retailers follow their US counterparts lower after Target became the second big retailer in two days to trim its profit forecast. Australia: JB Hi-Fi retreats 6.6%, Wesfarmers -7.8%, Harvey Norman -5.5%, Woolworths -5.6% South Korea: E-Mart - 3.4%; apparel makers Hansae -9.4%, F&F -4.2%, Youngone -8.2% Japan: Fast Retailing - 3.1%, MatsukiyoCocokara -1.4%, Ryohin Keikaku -1.7%, Nitori -3% Singapore: Grocery chain operator Sheng Siong slips as much as 1.3% Hong Kong: Sun Art Retail down as much as 4.1% In China, Tencent Holdings Ltd. plunged 6.6% after warning it will take time for Beijing to act on promises to prop up the Chinese tech sector. Cisco Systems Inc. slid in extended US trading on a disappointing revenue outlook. Japan's Nikkei 225 suffered firm losses amid reports the ruling coalition is considering increasing the corporate tax rate and after several data releases in which Machinery Orders topped estimates but Exports missed as China-bound exports declined by the fastest pace since March 2020. Indian stocks declined to a ten-month low, tracking a sell-off across Asia, on concerns the US Fed’s hawkish stance on inflation may cool economic activity and hurt consumer demand.  The S&P BSE Sensex plunged 2.6% to 52,792.23, its lowest level since July 30, in Mumbai, while the NSE Nifty 50 Index slipped 2.7% to 15,809.40  Software exporter Infosys Ltd. fell 5.4% to a 11-month low and was the biggest drag on the Sensex, which had 27 of 30 member stocks trading lower. All 19 sector indexes compiled by BSE Ltd. declined, led by S&P BSE Information Technology index, that dropped the most in over two years.   “Deteriorating macro sentiment such as soaring inflation, recession fears, and the prospect of the Federal Reserve getting even more hawkish will continue to keep benchmarks on the edge,” Prashanth Tapse, an analyst at Mehta Equities Ltd., wrote in a note.  In earnings, of the 36 Nifty 50 firms that have announced results so far, 21 have either met or exceeded analyst estimates, while 15 have missed forecasts. In Australia, the S&P/ASX 200 index fell 1.7% to close at 7,064.50, tumbling with global shares as concerns over inflation, interest-rate hikes and Ukraine piled up. All sectors dropped, except for health. Consumer shares were among the worst performers, following their US peers lower after Target became the second big retailer in two days to trim its profit forecast. Aristocrat rose after it released its 1H results and unveiled buyback plans. In New Zealand, the S&P/NZX 50 index fell 0.5% to 11,206.93 And in emerging markets, Sri Lanka fell into default for the first time in its history as the government struggles to halt an economic meltdown that prompted mass protests and a political crisis. An index of developing-nation stocks slumped more than 2%. In FX, the Bloomberg dollar spot index declines, with all G-10 majors rising against the greenback. CHF is the strongest G-10 performer with USD/CHF snapping lower on to a 0.97 handle and EUR/CHF slumping below 1.03. The Swiss franc diverged from Japanese yen and dollar after hawkish comments from SNB’s Thomas Jordan Wednesday, which assured traders CHF rates could follow EUR higher. Options trades may also be behind the latest move in the spot market. In rates, Treasury yields dropped about seven basis points as investors sought insurance against further declines in risk assets. Treasury yields richer by up to 6bp across belly of the curve, richening the 2s5s30s fly by 2.2bp on the day; 10-year yields around 2.83% with German 10-year outperforming by 2.5bps. Treasuries extended Wednesday’s rally as stocks resume slide with S&P 500 futures dropping under 3,900 to lowest level in a year; on the curve, the belly led the advance while bunds outperform in a more aggressive bull-flattening move as European stocks tumble. US session highlights include 10-year TIPS reopening at 1pm ET. Flurry of block trades during London session follows a spate of trades Wednesday; five blocks worth a combined cash-equivalent $1.2m/DV01 between 3:38am and 5:35am similarly entailed price action consistent with sales. Most European bonds also gained, with the yield on German 10-year securities falling more than basis points.  German yield curve bull-flattens: 30-year yield drops ~9bps before stalling near 1.05% which has acted as support for much of May so far. The Dollar issuance slate empty so far; eight borrowers priced $8.5b Wednesday, and new issue activity is expected to be muted during remainder of the week. Three-month dollar Libor +2.69bp to 1.50486%. Economic data slate includes May Philadelphia Fed business outlook and initial jobless claims (8:30am), April existing homes sales and leading index (10am). In commodities, crude oil extended declines, while most industrial metals were in the red as global growth fears damped the demand outlook. WTI reverses Asia’s gains, dropping back below $110 but holding above Wednesday’s lows. Spot gold is comparatively quiet, holding above $1,810/oz. Most base metals trade in the green; LME tin rises 2.1%, outperforming peers while copper held near a seven-month low and zinc extended losses. Bitcoin is modestly softer in a relatively contained range that lies just shy of the USD 30k mark. Crypto exchange FTX to start rollout of new stock-trading service on Thursday, WSJ reports; will not accept payment for order flow on stock trades. Looking to the day ahead now, and data releases from the US include the weekly initial jobless claims, along with April’s existing home sales and the Philadelphia Fed’s business outlook survey for May. Central bank speakers include ECB Vice President de Guindos, the ECB’s Holzmann and the Fed’s Kashkari. Finally, the ECB will be publishing the minutes from their April meeting. Market Snapshot S&P 500 futures down 1.1% to 3,879.25 STOXX Europe 600 down 1.7% to 426.41 MXAP down 1.8% to 161.60 MXAPJ down 2.2% to 527.30 Nikkei down 1.9% to 26,402.84 Topix down 1.3% to 1,860.08 Hang Seng Index down 2.5% to 20,120.68 Shanghai Composite up 0.4% to 3,096.97 Sensex down 2.4% to 52,926.71 Australia S&P/ASX 200 down 1.6% to 7,064.46 Kospi down 1.3% to 2,592.34 Gold spot down 0.1% to $1,814.49 U.S. Dollar Index down 0.28% to 103.52 German 10Y yield little changed at 0.96% Euro up 0.3% to $1.0496 Brent Futures down 0.1% to $109.00/bbl Top Overnight News from Bloomberg President Joe Biden is set to meet on Thursday with Finland’s President Sauli Niinisto and Swedish Prime Minister Magdalena Andersson at the White House to discuss the Nordic nations’ NATO bids. China’s top diplomat again warned the US over its increased support for Taiwan, showing the island democracy remains a major sticking point between the world’s biggest economies as Beijing sent more military aircraft toward the island Sri Lanka fell into default for the first time in its history as the government struggles to halt an economic meltdown that prompted mass protests and a political crisis The yuan’s outlook is finally looking more balanced after a 6.5% dive versus its major trading partner currencies since March. A more detailed look at global markets courtesy of Newsquawk Asia-Pac stocks were pressured on spillover selling after the worst day on Wall St in almost two years. ASX 200 was led lower by consumer staples following the retailer woes stateside and mixed Australian jobs data. Nikkei 225 suffered firm losses amid reports the ruling coalition is considering increasing the corporate tax rate and after several data releases in which Machinery Orders topped estimates but Exports missed as China-bound exports declined by the fastest pace since March 2020. Hang Seng and Shanghai Comp initially weakened with the Hong Kong benchmark dragged lower by heavy losses in tech after Tencent’s profit declined by more than 50% and with the mainland pressured as Beijing conducts a fresh round of mass COVID testing, although the mainland bourse recovered most of its losses after Shanghai announced a further gradual easing of restrictions. Xiaomi (1810 HK) Q1 adj. net profit CNY 2.859bln (vs 6.069bln Y/Y), Q1 revenue CNY 73.4bln (vs. 76.9bln Y/Y); global smartphone shipments -10.5% Y/Y at 38.5mln units. Top Asian News Shanghai Vice Mayor said Shanghai port throughput recovered to around 90% of the levels a year ago and that Shanghai will expand work resumption in areas with no COVID risk in early June. Furthermore, Shanghai is to gradually restore inter-district public transport from May 22nd and will require residents to show negative PCR tests taken within 48 hours before using public transport, while an economy official said Shanghai will reduce rents for small and medium-sized enterprises by more than CNY 10bln and the city extended CNY 72.3bln of loans to over 10,000 firms since March, according to Reuters. Japanese MOF official said China's COVID curbs are among the factors that caused a decline in China-bound exports from Japan which fell by the fastest pace since March 2020, while Japan's April imports reached the largest amount on record, according to Reuters. Japan's ruling coalition is reportedly considering increasing the corporate tax rate, according to Jiji. New Zealand sees 2021/22 OBEGAL at NZD -18.98bln (prev. forecast -20.44bln), 2021/22 net debt at 36.9% of GDP (prev. forecast 37.6%) and Cash Balance at NZD -31.78bln (prev. forecast -34.10bln), while Finance Minister Robertson said the economy is expected to be robust in the near term and they see a return to OBEGAL surplus in 2024/25, according to Reuters. European bourses are pressured across the board in a broader risk-off moves after yesterday's Wall St. sell off, as European players look past the brief respite seen overnight on Shanghai's reopening; Euro Stoxx 50 -2.3%. Stateside, the magnitude of the downside is somewhat more contained given newsflow has been limited since Wednesday's downside commenced, ES -1.2%. Top European News EU is reportedly considering a targeted trade war on troublesome Brexiteer MPs and Tory ministers to force UK PM Johnson to do a U-turn on the Northern Ireland protocol, according to The Telegraph. Top UK Economist Defends BOE’s Handling of Inflation Crisis EasyJet Bookings Pick Up Ahead of Uncertain Summer Season Apax-Owned Rodenstock Acquires Spanish Rival Indo European Gas Slips With LNG Imports Helping Boost Stockpiles In FX Franc resurgence and re-emergence as a safe haven currency continues; USD/CHF touches 0.9750 vs 1.0060+ peak on Monday, EUR/CHF sub-1.0250 vs circa 1.0500 at one stage only yesterday. Dollar loses momentum as US Treasury yields retreat further and curve re-flattens amidst ongoing risk rout, DXY ducks under 103.500 after peaking just shy of 104.000 on Wednesday. Kiwi and Aussie find positives via fiscal and fundamental factors to evade aversion; NZD/USD back above 0.6300 after NZ budget and AUD/USD hovering around 0.7000 post- Aussie jobs data. Yen retains underlying bid irrespective of mixed Japanese data, USD/JPY below 128.00 again. Euro firmer beyond EUR/CHF cross ahead of ECB minutes and Sterling off UK inflation data lows awaiting retail sales on Friday, EUR/USD retains sight of 1.0500 and Cable near 1.2400. Rand meandering ahead of SARB in anticipation of 50 bp rate hike, USD/ZAR around 16.0000, irrespective of Gold taking firmer hold of USD 1800/oz handle. Fixed Income Debt resumes safe-haven rally as market mood continues to sour. Bunds top 154.00, Gilts get close to 120.00 and 10 year T-note even nearer the same psychological level. BTPs lag amidst the ongoing aversion to risk, while OATs and Bonos reflect on somewhat mixed auction results. Commodities WTI and Brent are pressured in-fitting with broader sentiment as initial resilience on demand-side positives re. China/COVID were overpowered by the risk move. However, the benchmarks are around USD 1.00/bbl off lows of USD 104.36/bbl and USD 106.76/bbl respectively, following reports that China is discussing the purchase of Russian crude. China is said to be in talks with Russia to purchase oil for strategic reserves, according to Bloomberg sources; detailed on terms and volume reportedly not decided yet Qatar Energy was reportedly selling July Al-Shaheen crude at premiums of USD 5.80-6.40/bbl above Dubai quotes which is the highest in 2 months, according to Reuters sources. Spot gold is bid as it draws haven allure, with the yellow metal marginally surpassing USD 1830/oz. US Event Calendar 08:30: May Initial Jobless Claims, est. 200,000, prior 203,000; Continuing Claims, est. 1.32m, prior 1.34m 08:30: May Philadelphia Fed Business Outl, est. 15.0, prior 17.6 10:00: April Existing Home Sales MoM, est. -2.2%, prior -2.7%; Home Resales with Condos, est. 5.64m, prior 5.77m 10:00: April Leading Index, est. 0%, prior 0.3% DB's Jim Reid concludes the overnight wrap Today is my last day at work this week before I head up to Cambridge tomorrow for my Masters’ graduation. Before you send in a flood of congratulations though, I didn’t actually do any work for this qualification, with not even a single hour of revision. Now at this point you’re probably thinking I’m either a genius or guilty of some serious academic malpractice. I’m hoping the former. But the truth is that I’m benefiting from a quirky tradition that somehow means Cambridge, Oxford and Dublin will upgrade your Bachelors into a Masters after a few years. With the wedding two months away, it appears as though I’m losing all my bachelor status at once. Markets seem ready for a holiday too after the last 24 hours, with the selloff resuming at pace after the brief respite on Tuesday. In fact it was nothing short of a rout with the S&P 500 ending the day down -4.04%, marking its worst daily performance since June 2020, and leaving the index at a fresh one-year low. There wasn’t a single catalyst behind the slump, but weak housing data out of the US along with Target’s move to cut its profit outlook helped feed investor concern that the consumer might not be in as strong a position as previously thought. And that’s on top of all the other worries of late that the global economy is heading in a stagflationary direction amidst various supply-chain issues, alongside the prospect that tighter central bank policy is going to further dent growth and risks tipping various economies into recession. In terms of the specific moves, the S&P 500 gradually tumbled as the day went on, with its -4.04% decline more than reversing its +2.02% bounceback on Tuesday. The decline was an incredibly broad-based one, with just 8 constituents in the index ending the day higher, which is the lowest number since November. That earnings report we mentioned at the top meant that Target (-24.93%) saw the worst performance in the entire S&P 500, after saying they now expected their full-year operating income margin rate to be around 6%. That follows a disappointing report from Walmart the previous day, and meant that consumer staples (-6.38%) and consumer discretionary (-6.60%) were the worst-performing sectors in the S&P yesterday. The latest declines also mean that the S&P is back on track for a 7th consecutive weekly decline, having shed -2.49% since the start of the week, and S&P 500 futures are only up by +0.18% this morning. If the S&P 500 does see a 7th week in negative territory, then that would be the longest run of weekly declines for the index since 2001. Other indices lost ground too given the risk-off move, with the Dow Jones (-3.57%), the NASDAQ (-4.73%), and the small-cap Russell 2000 (-3.56%) all experiencing sizeable declines of their own. European indices had a better performance after closing before the worst of the US declines, and the STOXX 600 was “only” down -1.14% to just remain in positive territory for the week. With recessionary concerns back in focus, sovereign bonds rallied on both sides of the Atlantic as investors sought out safe havens. Yields on 10yr US Treasuries fell by -10.2bps to 2.88%, with the decline mostly led by a -9.6bps move lower in real yields, and nominal yields are only back up +2.5bps this morning. The yield curve also continued to flatten and the 2s10s slope (-6.9ps) fell to its lowest in over two weeks, at 21.0bps, although it’s been over 6 weeks now since the curve last traded in inversion territory. We did get some Fedspeak but to be honest there weren’t any major headlines relative to what we already knew, with Chicago Fed President Evans saying it was “quite likely” the Fed would be at a neutral setting by year-end, whilst Philadelphia Fed President Harker was making the case for more gradual rate hikes after the next few 50bp hikes are delivered. More important for the outlook was the release of various housing data yesterday, where housing starts fell to an annualised rate of 1.724m in April (vs. 1.756m expected), and that was from a downwardly revised 1.728m in March. That comes against the backdrop of rising mortgage rates, and the MBA reported that mortgage purchase applications fell -11.9% in the week ending May 13, leaving them at their lowest levels since May 2020 when the numbers were still recovering from the pandemic slump. Over in Europe, sovereign bond curves also became flatter as investors became increasingly aggressive on the near-term ECB rate path. Indeed the amount of ECB rate hikes priced in by the December meeting hit a fresh high of 108bps, or equivalent to at least four rate hikes of 25bps by year-end. That came amidst further ECB speakers over the last 24 hours, including Finnish central bank governor Rehn, who had already endorsed a July hike and said yesterday that the initial hike was “likely to take place in the summer”. Furthermore, he said that it seemed “necessary that in our policy rates we move relatively quickly out of negative territory”. We also heard from Estonian central bank governor Muller, who also endorsed a July hike and said he “wouldn’t be surprised” if the deposit rate were in positive territory by year-end. However, Spanish central bank governor De Cos said that rate hikes should be gradual as he called for APP purchases to end at the start of Q3, with rate hikes to follow shortly afterwards. Those growing expectations of tighter policy saw shorter-dated yields move higher in Europe once again, with 2yr German yields hitting their highest level since 2011 despite only a marginal +0.1bps move to 0.36%. However, the broader risk-off tone meant it was a different story for their longer-dated counterparts, and yields on 10yr bunds (-1.6bps) and OATs (-2.2bps) both moved lower on the day. Peripheral spreads widened as well, whilst iTraxx Crossover neared its recent highs with a +26.2bps move to 468bps. In terms of the fight against inflation, there was a potential boost on the trade side yesterday as US Treasury Secretary Yellen confirmed ahead of a meeting of G7 finance ministers and central bank governments that the she favoured removing some tariffs on goods that are not considered strategic. Separately the risk-off move also saw oil prices move lower for a 2nd day running yesterday, with Brent crude down -2.52%, although it’s since taken back a decent chunk of that loss this morning with a +1.51% move higher to $110.76/bbl. Over in Asia, equity markets have tracked those steep overnight losses on Wall Street to move sharply lower this morning. Among the key indices, the Hang Seng (-2.25%) is the largest underperformer amidst a broad weakness in tech stocks as the Hang Seng Tech index fell by an even larger -3.40%. Mainland Chinese stocks have performed relatively better however, even if the Shanghai Composite (-0.08%) and CSI (-0.25%) have both moved slightly lower, while the Nikkei (-1.91%) and the Kospi (-1.29%) have seen more substantial losses. Finally there was some important employment data out of Australia this morning ahead of their election on Saturday, with the unemployment rate falling to its lowest since 1974, at 3.9%. The employment gain was a bit softer than expected with just a +4.0k gain (vs. +30.0k expected), but that included a +92.4k gain in full-time employment, offset by a -88.4k decline in part-time employment. Elsewhere on the data side, there were fresh signs of inflationary pressure in the UK after CPI inflation rose to a 40-year high of +9.0% in April. But in spite of the 40-year high, that was actually slightly beneath the +9.1% reading expected by the consensus, which marked the first time in over 6 months that the reading hasn’t been higher than expected. Gilts outperformed following the release as it was also beneath the BoE’s staff projection of +9.1%, and 10yr gilt yields closed down -1.6bps on the day, whilst sterling underperformed the other major currencies leave it -1.28% weaker against the US Dollar. To the day ahead now, and data releases from the US include the weekly initial jobless claims, along with April’s existing home sales and the Philadelphia Fed’s business outlook survey for May. Central bank speakers include ECB Vice President de Guindos, the ECB’s Holzmann and the Fed’s Kashkari. Finally, the ECB will be publishing the minutes from their April meeting. Tyler Durden Thu, 05/19/2022 - 08:02.....»»

Category: personnelSource: nyt12 hr. 58 min. ago Related News

: Stock-index futures remain lower after economic data

This is a Real-time headline. These are breaking news, delivered the minute it happens, delivered ticker-tape style. Visit www.marketwatch.com or the quote page for more information about this breaking news......»»

Category: topSource: marketwatch15 hr. 1 min. ago Related News

: Dow futures down 363 points, or 1.2%

This is a Real-time headline. These are breaking news, delivered the minute it happens, delivered ticker-tape style. Visit www.marketwatch.com or the quote page for more information about this breaking news......»»

Category: topSource: marketwatch15 hr. 1 min. ago Related News

: Gold futures up 1.1% at $1,836.30 an ounce.

This is a Real-time headline. These are breaking news, delivered the minute it happens, delivered ticker-tape style. Visit www.marketwatch.com or the quote page for more information about this breaking news......»»

Category: topSource: marketwatch15 hr. 1 min. ago Related News

Global shares get pummeled by investor fears of economic slowdown as inflation heats up

Retailers like Target and Walmart are warning about the impact of inflation on customers, while Wall Street believes the risk of recession is rising. Traders have been cheered by earnings but are still concerned about inflation.Spencer Platt/ Getty Images Global shares slid Thursday, under pressure from investor concern about surging inflation and slowing growth. Major retailers like Target and Walmart have warned about the impact of rising prices on their customers. The S&P 500 on Wednesday saw its biggest one-day loss since the height of the pandemic in March 2020. Global shares dropped on Thursday, as evidence of mounting inflation around the world fueled investor fears of a slowdown in economic growth, which hit tech stocks and cryptocurrencies. Several major US retailers, including Target and Walmart, have warned about the impact of rising prices on the consumer. Meanwhile, the number of voices on Wall Street predicting recession is growing, with Goldman Sachs CEO David Solomon the latest to sound the alarm.The MSCI All World index fell 0.7% on the day, heading for a seventh consecutive weekly loss. The index, a broad gauge of global equities, has lost about 18% so far this year, roughly in line with the S&P 500.On Wednesday, US stock indexes suffered their biggest one-day fall since the depths of the pandemic, with the S&P 500 losing 4%, and the Nasdaq 100 falling 5.1%.Index futures suggested no respite at the start of trading later. S&P 500 and Dow Jones futures were down 0.5%, while those on the tech-heavy Nasdaq 100 were 1.7% lower."The brief bounce in risk assets in the first half of the week looks to have now turned entirely, as inflation and growth fears reassert themselves," strategists at IG said in a daily note."The inability of stocks to rally for more than a few days sends a message that investors remain firmly pessimistic for the time being." In Europe, the pan-continental STOXX 600 fell 2.4%, under pressure from losses in financial services and tech stocks. London's FTSE 100 was among the worst-performing indices in the region, shedding 2.7% in its largest one-day fall since early March. The slide followed inflation data on Wednesday that showed consumer price pressures in April hit their highest level in 40 years. With fears growing over the prospect of the world economy experiencing stagflation — a toxic combination of high inflation and slowing growth — government bond yields eased, reflecting a rise in their price, but were still heading for another weekly increase.The yield on the 10-year Treasury note briefly rose above 3% on Wednesday before subsiding overnight. The yield was last at 2.828%, down 6 basis points."More broadly, yesterday, it was another day where deleveraging was back at the top of the agenda, with equities falling once more — yesterday's bear market rally didn't last long! — and bonds selling-off a little, with the 10-year Treasury popping above 3% once more," Caxton FX strategist Michael Brown said.  "The technical picture is as grim as the fundamental one for equities, with the S&P future again failing to remain above 4,050, and having broken sub-4,000 once more," he added.In cryptocurrencies, bitcoin dropped 3.4% on the day to around $28,904, while ether lost almost 6% to trade at $1,918. Solana and cardano each fell 10%. The market has regained some ground in the past week, but sentiment is fragile. Bitcoin has fallen for an unprecedented seven weeks in a row, which analysts at crypto exchange Coinbase said was a record. "Putting that figure into historical perspective, it's close to the 62% decline that BTC experienced in the early pandemic panic of 2020 — but well short of the 80%-plus selloff the cryptocurrency saw during the 2018 bear market," they said.Read more:Are we in a housing bubble? We asked 32 experts, and most said no. They explain their answers and offer insight about what we could see with housing prices in the coming months.Read the original article on Business Insider.....»»

Category: topSource: businessinsider16 hr. 59 min. ago Related News

Dave Ramsey says student loans are "horrible and evil" and "we should stop making them" — but he doesn"t believe in forgiving debt

"It's intellectually dishonest for politicians to run around talking about forgiving student loans while they're still making them," he told Insider. In his note to Insider, Ramsey said that his proposed alternatives to taking out student loans for college would be paying cash or attending community college or trade school.Josh Anderson/Associated Press Finance personality Dave Ramsey told Insider that the US should stop "making" student debt.  He's a strong opponent of student debt cancellation, calling it "smoke and mirrors."  His proposed alternatives to student loans are paying cash and attending community college or trade school.  Dave Ramsey doesn't support canceling student debt — he's encouraging people not to create that debt in the first place. Ramsey, a radio show host, author, and finance personality, told Insider that politicians advocating for President Joe Biden to forgive student debt are ignoring a larger problem, which is the debt that would amass again if the current $1.75 trillion in loans is waived. "If we believe student loans are so horrible and evil, which I do, then we should stop making them," Ramsey told Insider in an email. "It's intellectually dishonest for politicians to run around talking about forgiving student loans while they're still making them."That's an elaboration of a post he made on Twitter last week, when he said that we should "stop allowing" student debt. Ramsey has previously come out strong against student debt cancellation, calling the idea that it could stimulate the economy "hogwash" and "smoke and mirrors," and arguing that loan forgiveness is a "political gimme by progressives trying to buy votes."  Research shows that even partial forgiveness would have a major impact on the economy: $50,000 in forgiveness for each borrower, for instance, would boost GDP by $91 billion over three years, the Committee for a Responsible Federal Budget found. Republican lawmakers who have spoken out tend to align with Ramsey's view. Senators Virginia Foxx and Richard Burr recently wrote of Biden in an opinion piece for Fox News, "By caving to progressives, he is breaking his promise to over 100 million taxpayers without student debt who are subsidizing this boondoggle."In his note to Insider, Ramsey said that his proposed alternatives to taking out student loans for college would be paying cash or attending community college or trade school. He previously called the societal emphasis on attending college a "culture-wide con."Ramsey's comments come as Biden is inching closer to deciding on widespread student-loan forgiveness. He recently said he'll announce relief in the coming weeks — and before payments are set to resume after August 31 — and for now, federal borrowers are waiting to hear what the amount of relief will end up being.It's likely the forgiveness will be closer to Biden's $10,000 student-loan forgiveness campaign pledge, which billionaire Mark Cuban recently said he would support. Many advocates and Democratic lawmakers are hoping the relief will be big — as much as $50,000 per borrower. Some reports have suggested the relief might be capped to those making under $125,000. "The more President Biden cancels, the more we narrow the racial wealth gap among borrowers and the bigger the boost to Americans' economic futures," Massachusetts Sen. Elizabeth Warren previously said in a statement. "This is the right thing to do."Read the original article on Business Insider.....»»

Category: topSource: businessinsider16 hr. 59 min. ago Related News

Metals Stocks: Gold futures nudge higher after stocks succumb to pressure

Gold futures saw modest strength on Thursday, as the yellow metal benefited from risk aversion in the wake of the worst day for stocks in nearly two years......»»

Category: topSource: marketwatch17 hr. 32 min. ago Related News

A Peek Into The Markets: US Stock Futures Down Following Wednesday"s Sell-Off

Pre-open movers U.S. stock futures traded lower in early pre-market trade after the Dow Jones dipped more than 1,150 points in the previous session. Investors are awaiting earnings results from BJ's Wholesale Club Holdings, Inc. (NYSE: BJ), Kohl's Corporation (NYSE: KSS) and Applied Materials, Inc. (NASDAQ: AMAT). Data on initial jobless claims for the latest week and Philadelphia Fed manufacturing index for May will be released at 8:30 a.m. ET. Data on existing home sales for April and index of leading economic indicators for April will be released at 10:00 a.m. ET. Federal Reserve Bank of Minneapolis President Neel Kashkari is set to speak at 4:00 p.m. ET. Futures for the Dow Jones Industrial Average dipped 325 points to 31,115.00 while the Standard & Poor’s 500 index futures fell 45.75 points to 3,877.00. Futures for the Nasdaq index fell 167.75 points to 11,767.75. Oil prices traded slightly higher as Brent crude futures rose 0.6% to trade at $109.75 per barrel, while US WTI crude ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzinga18 hr. 1 min. ago Related News

Market Snapshot: U.S. stock futures point to further pressure after worst day for equities in nearly two years

U.S. stock futures slumped on Thursday, following the worst slide in close to two years for the S&P 500......»»

Category: topSource: marketwatch18 hr. 17 min. ago Related News

US Stocks Extend Losses On China Smartphone News

US Stocks Extend Losses On China Smartphone News US equity markets were already in puke mode following catastrophic earnings from WMT, TGT, and a bunch of other retailers confirming the US consumer is about to implode, but headlines from Nikkei just sparked another leg lower. According to Nikkei, China’s top smartphone makers - Xiaomi, Vivo, and Oppo - have told suppliers to scale back orders for the upcoming quarters by about 20% due to supply chain disruptions from the country’s Covid-19 lockdowns (i.e., demand has cratered). Xiaomi, China's biggest smartphone maker and No. 3 globally, has told suppliers that it will lower its full-year forecast to around 160 million to 180 million units from its previous target of 200 million. Xiaomi shipped 191 million smartphones last year and is aiming to become the world's leading smartphone maker. The company could adjust its orders again as it continues to monitor the supply chain situation and consumer demand in its home market. Meanwhile, Vivo and Oppo are also seeking to reduce excessive inventories. Vivo told suppliers it will not update specifications for key components to reduce costs. The news sent futures into an (even faster) freefall, led by a 3.5% plunge in Nasdaq... With AAPL down hard... As stocks plunge, bonds are bid with yields tumbling 6-8bps across the curve, with 10Y once again unable to hold above 3.00%... How much more pain is Powell willing to take? Tyler Durden Wed, 05/18/2022 - 11:35.....»»

Category: blogSource: zerohedgeMay 18th, 2022Related News