News Highlights : Top Financial Services News of the Day - Monday at 11 AM ET
Grayscale CEO Michael Sonnenshein Steps Down The crypto asset manager is battling an investor exodus from its flagship bitcoin fund. A $10 Billion Real-Estate Fund Is Bleeding Cash and Running Out of Options A long line of investors in Starwood Real Estate Income Trust, known as Sreit, want their money back. Dimon Led Bank CEOs to Fend Off Tougher Capital Rules Regulators discuss slashing proposed capital requirements in sign of banks' increasing clout. Meet Salim Ramji, Who Is Going to Oversee the Retirement Assets of Tens of Millions of Americans The first outsider to run Vanguard needs to win over the Bogleheads. Colleagues say he can. Financial Services Roundup: Market Talk Bendigo and Adelaide Bank and more in the latest Market Talks covering Financial Services. Crypto Lender Genesis Global Gets Wind-Down Plan Approved A bankruptcy judge approved a chapter 11 wind-down plan for Genesis that will pay back creditors about 77% of the same digital assets that they lent to the cryptocurrency lender before its bankruptcy filing. RedBird Banks $4.7 Billion for Dealmaking The sports, media and financial services investor collects fresh capital amid a flurry of high-profile deals. Private Equity Warms Up to Clean-Energy Tax Credits Private-equity firms are beginning to tap a nascent market for clean-energy tax credits, betting on a boost to returns from helping project developers get better terms for the tradable credits. The Medicare Bubble Has Burst The government health insurance program had been a gold mine for private insurers until recently. Binance Gets Two Compliance Monitors in Settlements With U.S. Authorities Consultant Forensic Risk Alliance and law firm Sullivan & Cromwell have been selected as outside monitors as part of the crypto exchange's $4.3 billion settlements with U.S. regulators. (END) Dow Jones Newswires 05-20-24 1115ET
Stock Market Today: Stock Market News And Analysis
Current Recommended Market Exposure Level With regular updates throughout each trading session, the Stock Market Today column highlights the latest stock market news and alerts you to any changes in market trend. You'll also get ongoing analysis of the best stocks to buy and watch. Why is the stock market up today? Why is the market down? What's the outlook for stock futures? What are the best stocks to buy right now? Is it time to sell your stocks? Stock Market Today helps you answer those questions before the market opens, throughout each trading session and after each day's stock market close. It's a quick and easy way to stay on top of key stock market market news and trends as they happen, and see movements in both large caps and small caps that are affecting your own portfolio. You'll find the latest prices and price changes for the Nasdaq, S&P 500 and the Dow Jones Industrial Average, as well as for the Russell 2000. Track Stock Futures For The Dow Jones, S&P 500 And Nasdaq The analysis you'll find in the Stock Market Today is based on over 130 years of market history and a detailed study of every top-performing stock since the 1880s. By tracking the market in terms of three stages — market in uptrend, uptrend under pressure and market correction — the Stock Market Today helps you stay on top of the latest stock market news while keeping any latest fluctuations in perspective to help you decide what action, if any, to take. Bookmark this page to make sure you stay on top of all the latest action action and stock market news, and be sure to check The Big Picture after each market close for more detailed analysis and stocks to watch. How To Handle Changing Stock Market Trends YOU MAY ALSO LIKE: Looking For The Best Stocks To Buy And Watch? Start With This 3-Step Routine See Which Stocks Were Just Added To – And Removed From – IBD Stock Lists How To Buy Stocks | Buying Checklist When To Sell Stocks | Selling Checklist
3 Dow Stocks to Watch as The Index Hits a New High
This year, the stock market could show investors a new divide, unlike anything that portfolios have dealt with in the past economic cycle. After contracting for over 15 months, the U.S. manufacturing and industrial sector could be set up to outperform others, even if there are currently hot issues in the technology sector.
Dow Jones Rises As Nvidia Rallies On Price-Target Hikes; Tesla Rival Li Auto Skids On Earnings
Futures for the Dow Jones Industrial Average and other major stock indexes rose modestly in premarket action Monday, as Wall Street kicked off the week seeking more record highs. Among the gainers was Nvidia (NVDA), which rallied after multiple price-target hikes from analysts, while Tesla rival Li Auto (LI) skidded after an earnings miss on the stock market today. Prior to the opening bell, Dow futures rose 0.1% vs. fair value, while S&P 500 futures gained 0.2%. Tech-focused Nasdaq 100 futures rose 0.2% in morning action. Early Monday, the 10-year Treasury yield ticked lower to 4.42%. Further, oil prices dipped as West Texas Intermediate futures traded around $79.80 a barrel. Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) was up 0.2%, while the SPDR S&P 500 ETF (SPY) added 0.2%. Nvidia shares rallied 1.4% Monday morning after a number of price-target hikes. Baird upped its target from 1,050 to 1,200, while Susquehanna raised its to 1,100 from 1,050. Further, Barclays adjusted its price target from 850 to 1,100. The artificial intelligence giant is set to report earnings Wednesday. Nvidia stock slipped 2% Friday, barely holding above a handle entry at 922.20. The AI leader is an IBD Leaderboard stock. Li Auto was a key earnings mover Monday morning. The Chinese electric-vehicle maker veered more than 4% downward after reporting weaker-than-expected earnings during the first quarter. Li also offered a lower outlook for the current quarter, as the company struggles with increased competition. The coming week sees Wednesday's release of Federal Reserve minutes for May. Investors will be look for further clues into the thoughts of Fed Chair Jerome Powell and other central bankers on the future path of interest rates. Other economic reports due in the coming week includes existing-home sales on Wednesday, new-home sales Thursday and S&P flash U.S. Purchasing Managers' Index data for both manufacturing and services, which come Thursday. Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels. On Friday, the Dow rose 0.3%, and the S&P 500 moved up 0.1%. The Nasdaq composite inched lower. All three major stock indexes hit record highs last week. With Friday's gain, the Dow closed above the 40,000 level for the first time. It touched that threshold in intraday action on Thursday, but closed below it with a slight loss. Investor's Business Daily's Big Picture column on Friday said that the Nasdaq "turned in a solid weekly gain of 2.1%. It has now risen for four weeks in a row and is now up 11.2% for the year. The tech-heavy index sits above its short-term moving averages as well as the key 50-day line." During Friday's IBD Live show, the IBD Live team discussed the current trading conditions and how investors should handle the ongoing stock market rally. Now is an important time to read The Big Picture column amid the ongoing stock market action. Also, be sure to read how to adjust to changing market conditions, with IBD's new exposure levels. Learn How To Time The Stock Market With IBD's ETF Market Strategy PDD (PDD), Taiwan Semiconductor Manufacturing (TSM), Trade Desk (TTD) and Tradeweb Markets (TW) — plus Dow Jones components JPMorgan Chase (JPM) and Merck (MRK) — are among the best companies to watch on the stock market today. JPMorgan and Taiwan Semi are featured in this Stocks Near A Buy Zone column. An essential resource for daily breakouts is IBD MarketSurge's "Breaking Out Today" list. It shows MarketSurge Growth 250 stocks that are breaking out past new buy points. Notably, Palomar (PLMR) broke out past a 86.26 buy point in a flat base. Check out the MarketSurge "Near Pivot" list for more stocks nearing buy points in bases. To find more stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and are available to check every day. Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard JPMorgan is breaking out past a flat base's 200.94 entry following strong gains in recent weeks. Shares rose 0.8% on the stock market today. Meanwhile, drug giant Merck is rapidly approaching a flat base's 133.10 entry. Merck stock was up a fraction Monday. 4 Top Growth Stocks To Watch In The Stock Market Today Outside the Dow Jones index, Temu-parent PDD is breaking out past a cup-with-handle's 142.32 buy point, according to IBD MarketSurge. PDD shares added 1.4% ahead of the open on Monday. Chipmaker Taiwan Semiconductor is in buy range above a 148.43 buy point in a double-bottom base in the wake of strong recent gains. The stock gained 0.2% Monday. Trade Desk climbed 1.7% Friday, closing above a 94 entry in a consolidation. Trade Desk rose 0.3% Monday morning. Tradeweb is at the top of its buy range past a flat base's 108.04 buy point, with a 0.4% rise Friday. The stock was unchanged Monday. Find The Best Stocks To Buy And Watch With IBD Stock Screener And IBD Screen Of The Day These are four stocks in or near buy zones in today's stock market. Join IBD experts as they analyze leading stocks in the stock market today on IBD Live Among Magnificent Seven stocks, Tesla (TSLA) climbed 0.7% Monday morning, looking to extend its win streak to three sessions. Tesla stock rallied 1.5% Friday, rebounding from support at the 50-day line. Shares remain more than 40% off their 52-week high. Among Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT) traded mixed ahead of Monday's stock market open. Apple stock inched higher Friday, extending a win streak to five sessions. Shares are forming a cup base that has a 199.62 buy point, but keep an eye out for a potential handle to offer a lower entry. The stock was off 0.4% Monday morning. Microsoft shares lost 0.2% Friday, still within striking distance of the software giant's flat base that has a 430.82 buy point. And Microsoft stock rose 0.3% Monday. Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today. YOU MAY ALSO LIKE: Check Out IBD's New Exposure Levels To Help You Stay In Step With The Market Trend Top Growth Stocks To Buy And Watch Learn How To Time The Market With IBD's ETF Market Strategy Find The Best Long-Term Investments With IBD Long-Term Leaders Spot Buy Points And Sell Signals With MarketSurge Pattern Recognition
JPMorgan Stock Rises After Dow Jones Banking Giant Hikes Net Interest Income Forecast
JPMorgan stock rose further in a buy zone early Monday. The Dow Jones bank lifted its net interest income forecast ahead of its investor day.
News Highlights : Top Financial Services News of the Day - Monday at 7 AM ET
A $10 Billion Real-Estate Fund Is Bleeding Cash and Running Out of Options A long line of investors in Starwood Real Estate Income Trust, known as Sreit, want their money back. Dimon Led Bank CEOs to Fend Off Tougher Capital Rules Regulators discuss slashing proposed capital requirements in sign of banks' increasing clout. Meet Salim Ramji, Who Is Going to Oversee the Retirement Assets of Tens of Millions of Americans The first outsider to run Vanguard needs to win over the Bogleheads. Colleagues say he can. Crypto Lender Genesis Global Gets Wind-Down Plan Approved A bankruptcy judge approved a chapter 11 wind-down plan for Genesis that will pay back creditors about 77% of the same digital assets that they lent to the cryptocurrency lender before its bankruptcy filing. RedBird Banks $4.7 Billion for Dealmaking The sports, media and financial services investor collects fresh capital amid a flurry of high-profile deals. Private Equity Warms Up to Clean-Energy Tax Credits Private-equity firms are beginning to tap a nascent market for clean-energy tax credits, betting on a boost to returns from helping project developers get better terms for the tradable credits. The Medicare Bubble Has Burst The government health insurance program had been a gold mine for private insurers until recently. Binance Gets Two Compliance Monitors in Settlements With U.S. Authorities Consultant Forensic Risk Alliance and law firm Sullivan & Cromwell have been selected as outside monitors as part of the crypto exchange's $4.3 billion settlements with U.S. regulators. Investors Are Striking Gold All Over Investors have rarely had it this good, with prices of everything from homes to stocks and cryptocurrencies soaring. Fed's Barkin says consumers are driving inflation. Here's what they're willing to pay more for. The service sector "has changed their view" and believes consumers will accept higher prices and are going to raise them until households balk. (END) Dow Jones Newswires 05-20-24 0715ET
The Slowdown Is Here, And Markets Cheer
ismagilov When the first quarter Gross Domestic Product (GDP) numbers came out a few weeks ago, we were among the many observers who noted that the lower-than-expected growth rate (1.6 percent real quarter-on-quarter growth, annualized) was actually not all that bad, with both consumer spending and private business investment - arguably the economy’s two most important growth drivers - sustaining their recent healthy trends. Well, that view (which among others was offered by Fed chair Jay Powell at the most recent Federal Open Market Committee meeting) may have been correct, but in hindsight, it also seems like it was the opening act for what has since been a stream of underwhelming macro performance numbers. Consumer confidence for April came in well below economists’ expectations (both the Conference Board and the Michigan sentiment indexes). Regional and national metrics from the Purchasing Managers Index (PMI) and Institute for Supply Management (ISM) showed manufacturing activity moving into contraction territory. First quarter productivity (the most important measure of the economy’s long-term growth potential) came in lighter than expected. The monthly jobs report published by the Bureau of Labor Statistics showed a slowdown in new hiring and a small uptick in the unemployment rate. April retail sales slowed considerably, and the measure that feeds directly into GDP was negative. Goldilocks Ascendant One data point does not a trend make, but that’s a whole lot more than one data point. Now, it should not have escaped your attention that while all this soft economic data has been trickling in, the stock market has been quietly climbing back from its April pullback. The S&P 500, Nasdaq Composite and Dow Jones Industrial Average are all right around their record highs, while bond yields have settled into a fairly tight range, with the 10-year Treasury hovering somewhere a bit north or south of 4.4 percent on any given day. This is - or at least this seems to be by just about every measure we see - what an actual “soft landing” looks like. Not too hot, not too cold, but just right, like the Three Bears in the story. The market loves itself a Goldilocks economy, where modest growth is paired with declining inflation and, of course, a better likelihood of interest rate cuts. The other big economic news this week was, of course, the April Consumer Price Index, which arrived almost exactly in line with economists’ expectations. The core CPI rate of 3.6 percent year-on-year is the lowest in three years, with the current forecast for May core CPI coming down to 3.5 percent. With the chance of a Fed funds rate cut in June now all but off the table, investors are looking ahead to September as a more likely occurrence than the prevailing wisdom had it just a couple weeks ago. We’ll see if this trend continues - there is another batch of PMI reports due to come out next week, followed by another consumer confidence reading and then the Personal Consumption Expenditures (PCE) inflation report before the end of the month. The next BLS jobs report will come out on June 7, and that will tee up the next FOMC meeting (which happens on the same day as the May CPI report gets published). Conditions could change. For now, though, Goldilocks rules and markets are fine with that. Original Post Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
Investor Optimism Improves, Dow Settles Above 40,000
The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the “Greed” zone on Friday. U.S. stocks settled higher on Friday, as the Dow Jones index settled above the major 40,000 level for the first time. U.S. stocks also notched weekly gains, with the Dow gaining 1.2% to record its fifth consecutive weekly gain, while the S&P 500 added 1.5% last week. On the economic data front, the U.S. leading index fell 0.6% month-over-month for April, versus market expectations for a 0.3% decline. Shares of Most sectors on the S&P 500 closed on a positive note, with energy, materials and financial stocks recording the biggest gains on Friday. However, information technology and consumer staples stocks bucked the overall market trend, closing the session lower. The Dow Jones closed higher by around 134 points to 40,003.59 on Friday. The S&P 500 rose 0.12% at 5,303.27, while the Nasdaq Composite slipped 0.07% at 16,685.97 during Friday's session. Investors are awaiting earnings results from At a current reading of 64.5, the index remained in the “Greed” zone on Friday, versus a prior reading of 63.5. The Fear & Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.
Federal Reserve Watch: Plenty Of Money Still Around
Douglas Rissing The Federal Reserve has been conducting a round of quantitative tightening for over two years now. During this time, since March 16, 2022, the securities portfolio of the Federal Reserve has been reduced by over $1.6 trillion. The number up through Wednesday, May 15, 2024, is $1,628.1 billion. However, if we look at the rate of increase of the M2 measure of the money stock from March 2020 through March 2024, we see that the M2 money stock has risen from $16,051.5 trillion to $20,981.9 trillion. This rise in the M2 money stock has been at a 6.9 percent compound annual rate. Historically, this is a rather high rate of expansion for a four-year time period. Of course, most of the expansion came in the first part of the period, but still, the money is in the system. Here is the chart. M2 Money Stock (Federal Reserve) So, in calculating the 6.9 percent number, we are looking at the chart from March 2020 through March 2024... four years. This monetary growth is what we are talking about when we argue that there is still plenty of money around in the banking system even though the Federal Reserve has been reducing the size of its securities portfolio. Milton Friedman, the monetary economist, has argued that inflation everywhere, every time, is a result of the monetary expansion taking place in a country. A 6.9 percent compound rate of growth in the M2 money stock is certainly much more than the rate of growth of the real economy in the United States. Should we be surprised that price inflation has been an issue over the past few years? Yes, the Federal Reserve has been reducing the size of its securities portfolio, but, the money stock growth has still been excessive. There is plenty of money circulating around in the system. The open question remains... are the efforts of the Federal Reserve to reduce the size of its securities portfolio sufficient to actually get the inflation rate in the U.S. down to the level the Fed is shooting for? And, yes, the growth rate of the M2 money stock has been negative for the past two years, but the same question can be asked about this behavior. Has the behavior of the M2 money stock over the past two years really been sufficient to slow down the U.S. rate of inflation? If one looks at the performance of the stock market in the U.S., one could argue that the answer to these questions is... no! Friday, all three major stock market indexes hit, during the day, new historical highs. The Dow Jones Industrial Average closed at a new historical high on Friday, and the S&P 500 closed just below a new record, as did the NASDAQ. This is not an economy where the investment community believes that the central banks' monetary policy is restrictive. The Federal Reserve continues to reduce the size of its securities portfolio. According to the latest H.4.1 statistical release of the Federal Reserve, the release for May 15, 2024, the securities portfolio of the Federal Reserve declined by another $30.7 billion in the latest banking week. This brings the size of the reduction down to $1,628.1 billion. However, it should be noted that the "excess reserves" of the banking system rose last week to more than $3.4 trillion. This comes from the Federal Reserve H.4.1 statistical release, the line item "Reserve Balances with Federal Reserve Banks". If we look at the Fed's H.8 statistical release, "Assets and Liabilities of the U.S. Banking System" we see that for the date May 1, 2024, commercial banks in the U.S. held $3.3 trillion in "cash assets." This is an enormous number. The commercial banking system is sitting on a very large amount of cash. Yes, the size of the Fed's securities has shrunk. Still, the commercial banking system is very, very liquid. Here is the picture of commercial bank "excess reserves" going back to January 2020. Reserve Balances With Federal Reserve Banks (Federal Reserve) Excess reserves expanded very rapidly as the Federal Reserve fought against the effects of the Covid-19 pandemic. They reached a peak in late 2021. Excess reserves declined as the Fed began its round of quantitative tightening, but then began to increase at the time of the commercial bank failures in 2023. Note that even though the Fed has continued to reduce the size of its securities portfolio, it has continued to manage commercial bank reserves, increasing this measure since March 2023. All this has been taking place as Fed Chairman Jerome Powell and the Federal Reserve continue to debate whether or not the Fed's policy rate of interest should be reduced or not. It is my belief that one reason Mr. Powell is being very careful about starting to lower the Fed's policy rate of interest is that the commercial banking system continues to have such a large pile of cash hanging around. With so much cash hanging around, inflation is still a major threat. Remember, over the past four years, the M2 money stock has increased at a compound rate of just under 7.0 percent. The threat of excessive inflation still lingers. Mr. Powell doesn't want to face the possibility that the Fed reduced the policy rate of interest, only to see inflation remain at current levels or even rise from where it is now. Investors? Investors realize that there is an excess of cash hanging around. This cash is the source of funds for rising stock prices. This cash is also the source of the confidence in the continued growth in the U.S. economy. Mr. Powell is dealing with a real "balancing" problem. When do you start to reduce interest rates? How much longer do you keep interest rates at current levels? And, there is a presidential election coming up in about six months... The last thing a Chairman of the Board of Governors of the Federal Reserve System wants on his or her watch is for the Fed to do something to disturb the markets or the economy in a way that impacts the outcome of the election. Mr. Powell will be very cautious over what he and the Fed do in the next six months. If the Fed does act so as to keep financial markets peaceful going through the election, then investors should find financial markets acting well. That is, the stock market could be in for some more gains and more "new" historical highs if the Federal Reserve is able to keep financial markets stable.
News Highlights : Top Financial Services News of the Day - Monday at 12 AM ET
Dimon Led Bank CEOs to Fend Off Tougher Capital Rules Regulators discuss slashing proposed capital requirements in sign of banks' increasing clout. Meet Salim Ramji, Who Is Going to Oversee the Retirement Assets of Tens of Millions of Americans The first outsider to run Vanguard needs to win over the Bogleheads. Colleagues say he can. Crypto Lender Genesis Global Gets Wind-Down Plan Approved A bankruptcy judge approved a chapter 11 wind-down plan for Genesis that will pay back creditors about 77% of the same digital assets that they lent to the cryptocurrency lender before its bankruptcy filing. RedBird Banks $4.7 Billion for Dealmaking The sports, media and financial services investor collects fresh capital amid a flurry of high-profile deals. Private Equity Warms Up to Clean-Energy Tax Credits Private-equity firms are beginning to tap a nascent market for clean-energy tax credits, betting on a boost to returns from helping project developers get better terms for the tradable credits. The Medicare Bubble Has Burst The government health insurance program had been a gold mine for private insurers until recently. Binance Gets Two Compliance Monitors in Settlements With U.S. Authorities Consultant Forensic Risk Alliance and law firm Sullivan & Cromwell have been selected as outside monitors as part of the crypto exchange's $4.3 billion settlements with U.S. regulators. Investors Are Striking Gold All Over Investors have rarely had it this good, with prices of everything from homes to stocks and cryptocurrencies soaring. Financial Services Roundup: Market Talk Read about SPDR Gold, Robinhood Markets, Canadian household borrowing, and more in the latest Market Talks covering Financial Services. Dow Jones Industrial Average Tops 40000 for the First Time The recession that so many economists anticipated has remained out of sight, giving investors hope that stocks can keep climbing. (END) Dow Jones Newswires 05-20-24 0015ET
3 Cheap Dow Stocks to Buy Now: May 2024
On May 16, the Dow hit the 40,000 milestone after an excellent earnings report from Walmart (NYSE: WMT ). Given the ongoing economic strength and technical momentum, adding some market exposure with cheap Dow stocks is warranted.
Did The Rally End With Dow 40,000?
Stock traders and investors had no problem with last week's PPI and CPI report even if the PPI was a bit higher than expected. This is typical of a strong bull market as while the S&P futures were lower in an initial reaction to the PPI report, they moved higher for the rest of the day.
