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S&P 500 poised for new record with Powell back in spotlight

finvestadminBy No Comments10 Mins Read

U.S. stocks rose on Thursday, staying strong ahead of a second day of Federal Reserve Chairman Jerome Powell’s close testimony.

Tech stocks once again took the lead, with the Nasdaq Composite Index (^IXIC) rising as much as 1.4% and the S&P 500 (^GSPC) rising nearly 1% during the session to a new all-time high. The Dow Jones Industrial Average (^DJI) rose 0.5%.

Stocks have risen over the past two sessions as the market appreciated Powell’s questions from lawmakers about the economy and monetary policy, but there were no bad news or surprises. Although he said a rate cut was likely before the end of the year, he insisted on reiterating the central bank’s message that it was in no hurry to ease policy.

On Thursday, this time before the Senate Banking Committee, the Fed chair reiterated the central bank’s intention to cut interest rates as long as inflation data continues to show cooling.

Economic data on Thursday showed the number of jobless claims for the week ending March 2 was unchanged at 217,000. The number of continuing applications is just over 1.9 million, an increase of approximately 8,000 from the previous announcement. The key non-farm employment report is expected to be released Friday morning.

Meanwhile, gold (GC=F) rose for the fifth straight day, hitting a new high above $2,160 as the prospect of a rate cut gives fresh impetus to a record rally.

Among companies, shares of Victoria’s Secret (VSCO) plummeted more than 25% after the lingerie maker’s sales outlook fell short of expectations.

live10 updates

  • Communication services and technology lead market rise

    Stocks rose on Thursday, with tech stocks again leading the charge, with the Nasdaq Composite Index (^IXIC) up as much as 1.4% and the S&P 500 (^GSPC) up about 1% to its highest point in the session. Did. The Dow Jones Industrial Average (^DJI) rose 0.5%.

    Sector-wise, the Communications Services (XLC), Technology (XLK) and Materials (XLB) sectors all rose more than 1% to lead the way.

    Source: Yahoo Finance

    Source: Yahoo Finance

  • thursday trend ticker

    New York Community Bankcorp (new york cb)

    Shares rose 7% on Thursday after the regional lender cut its dividend to a penny a share as part of a review plan. New York Community Bancorp said it lost 7% of its deposits last month. The disclosure came a day after the financier announced funding from a group led by its new CEO and former U.S. Treasury Secretary and Goldman Sachs partner Steven Mnuchin.

    Victoria’s Secret (VSCO)

    The lingerie maker’s shares fell as much as 30% during the trading period after the company’s revenue outlook fell short of analysts’ expectations. Victoria’s Secret expects net sales to be about $6 billion this year, or a low single-digit decline compared to last year.

    Meta (meta)

    The social media giant’s stock was among the top five trending tickers on Yahoo Finance on Thursday. Stock prices hit new highs. Meta stock is up about 44% since the beginning of the year. The stock is the second-best performing stock in the Magnificent 7 group this year, behind Nvidia (NVDA), which rose 85% over the same period.

  • More homes are on the market this spring, but rising interest rates could leave buyers stuck

    Yahoo Finance’s Dani Romero reports that this year’s spring housing market could be even more active as inventory gains momentum. But rising interest rates have kept buyers on the sidelines.

    new research from realtor.com The number of homes actively sold in February showed a 14.8% increase compared to the same month last year. This is the fourth consecutive month that the number of homes on the market has increased.

    “The fact that we can start this year with more homes on the market than we’ve seen on the market since 2020 is a really positive step,” Daniel Hale, chief economist at Realtor.com, said in an interview with Yahoo Finance. he said.

    Inventories are still down nearly 40% compared to pre-pandemic levels. Meanwhile, borrowing costs are rising again. The average interest rate on a 30-year fixed loan was 6.94% as of last Thursday, up from 6.9% the week before, according to Freddie Mac data.

    Please see here for the detail.

  • Gold gains further as Chairman Powell reiterates the possibility of interest rate rises this year

    Gold (GC=F) extended its rally near record highs as Fed Chairman Jerome Powell reiterated policy makers’ intention to cut interest rates this year if inflation data is as expected.

    Precious metal prices rose for the fifth day, reaching a record above $2,170 per ounce before moving higher in pairs. Futures were trading just around $1,162 by 11 a.m. ET.

    When interest rates fall and the US dollar eases, precious metals tend to rise. On Thursday morning, Federal Reserve Chairman Jerome Powell reiterated to lawmakers his intention to cut interest rates by the end of the year if inflation data come out as expected.

    The US dollar weakened slightly on Thursday, supporting the rise in commodity prices invoiced in US dollars.

  • Nvidia stock hits new record, surpassing $900 level

    Nvidia (NVDA) stock rose more than 2% on Thursday, hitting a new all-time high. Shares of the AI ​​darling topped the $900 mark in morning trading, hitting a high of $909.92.

    Nvidia is up 88% since the beginning of the year. The semiconductor giant was the best performer among the Magnificent 7 stocks this year.

    Social media giant Meta (META) also hit a new high on Thursday. The stock is up 46% since the beginning of the year.

  • Stocks start higher ahead of second day of Fed chairman’s testimony

    Major averages rose on Thursday ahead of Fed Chairman Jerome Powell’s second day of Congressional testimony.

    The Nasdaq Composite Index (^IXIC) rose 0.7% and the S&P 500 (^GSPC) rose 0.6%. The Dow Jones Industrial Average (^DJI) also rose 0.5%.

    The rise came a day after Jerome Powell took questions from lawmakers about the economy and monetary policy. Powell reiterated that policymakers are in no hurry to ease, but that a rate cut is likely before the end of the year. Friday’s jobs report will give investors a clue as to the timing of a rate cut.

    Meanwhile, Bitcoin (BTC-USD) remains above $67,000 on Thursday after hitting a new all-time high earlier this week.

  • NYCB loses 7% of deposits in one month, new rescue challenges emerge

    New York Community Bancorp (NYCB) lost 7% of its deposits in a month, underscoring the challenges facing a new group of investors led by Steve Mnuchin who outlined a turnaround strategy on Thursday.

    Yahoo Finance’s David Hollerith reports that total deposits fell from $83 billion as of February 5 to $77.2 billion as of March 5, according to the bank’s disclosure in an investor presentation. .

    Currently, approximately 80% of deposits are backstopped by Federal Deposit Insurance Corporation insurance, while 20% are uninsured. The company lost $7.8 billion in uninsured deposits last month.

    The disclosure comes as NYCB announces a new CEO and a $1 billion infusion from a group led by Mnuchin, a former U.S. Treasury secretary and Goldman Sachs partner, to regain investor confidence. It came a day after the dramatic attempt.

    NYCB stock was relatively flat in pre-market Thursday after soaring more than 7% in the pre-market.

    Please see here for the detail.

  • Long hours in the penalty box: Victoria’s Secret

    Amazon (AMZN) bra purchase transaction.

    Victoria’s Secret (VSCO) suffered truly disastrous financial results last night, similar to what happened just hours earlier at fellow mall resident Foot Locker (Florida). This is the right move, as the intimate apparel company’s stock price has plunged nearly 30% premarket.

    Management cited sales trends in February that had not improved from the 6% decline in the fourth quarter.

    JPMorgan analyst Matt Voss (who downgraded VSCO today) added the following section to a research note to clients that caught my attention. VSCO appears to be losing more market share to Amazon, but the company is unlikely to win this battle. In my opinion, the problem is structural.

    “It’s worth noting in the underwear industry data that management believes the sports bra category outperforms non-sports (i.e. structured bras), with sports bras outperforming non-sports (i.e. structured bras) by 30% overall in the broader underwear addressable market. 70% (compared to VSCO).So, in addition to sportswear companies such as Lululemon, management is also looking to expand its He pointed out that the overall underwear market in the fourth quarter declined by mid-single digits.In the sports bra category, (LULU) gained market share.

    Despite VSCO/Florida’s terrible quarter, there are retailers within the mall that are winning.

    Here’s what Abercrombie & Fitch (ANF) CEO Fran Horowitz told me on Wednesday after delivering yet another quarter of double-digit sales.

  • Amazing analysis of the day today…

    Perhaps it’s time to reconsider Microsoft’s (MSFT) decline.

    Over the past 25 business days, Microsoft stock has fallen 0.4%, while the S&P 500 index has risen 4%. The overall Mag 7 has been trading on a volatile note lately, and Microsoft hasn’t been affected either.

    EvercoreISI analyst Kirk Materne’s new predictions about Microsoft’s AI opportunities could reignite the bull market.

    Here’s what he said today in a new note to customers:

    “Aggregating bottom-up Gen AI analysis and looking out five years, we find that Gen AI could add up to $82.5 billion to Microsoft’s revenue growth in 2028, based on a “base case” scenario. I am estimating. This means our revenue will increase by 24%. CY28 revenue forecast (assuming “core” Microsoft’s 23-28 revenue CAGR of 9%). This equates to an increase in EPS of $5.10, assuming a 45% increase in net income. This is slightly lower than the previous year’s increased profits. The “Case” scenario represents an incremental revenue opportunity of $142.8 billion and an incremental EPS of $12.07. The updated CY27 AI incremental revenue forecast of $54.6 billion is $4.2 billion higher than the previous “base case” forecast from June 2023. is off to a strong start, but we’re still in the earnings phase, and based on our analysis, we expect Gen AI to maintain an upward bias on Microsoft’s revenue and his EPS forecast for the foreseeable future. . ”

    Materne rates Microsoft an outperformer with a price target of $475, 17% above current levels.

  • Deutsche Bank boards the Bitcoin rocket ship

    Departure progress.

    The Deutsche Bank team today published a note looking at five reasons why there is room for Bitcoin prices to rise further. It’s too early to sleep with a detailed explanation of all five reasons, so let’s focus on one. That is the possibility of the Bitcoin halving event in April.

    Investment banks are cautioning against Bitcoin’s bullish movements around previous halving events.

    “In the 30 days before the November 2012 halving, prices rose 5%. Before the July 2016 halving, we saw an even more significant 13% rise. Most recently, in May There was a significant price increase of 27% in the month preceding the halving of 2020. ”

    A timeline chart to help you see how this has played out historically:

    Bitcoin bulls are waiting for another halving in April.

    Bitcoin bulls are waiting for another halving in April. (Deutsche Bank)

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