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* FedEx falls on profit drop, forecast cut
* Investors split over Fed's taper plans
* Indexes surge: Dow 1.40%, S&P 1.25%, Nasdaq 1.16% (Updates to midday)
By Ambar Warrick
Sept 22 (Reuters) – Wall Street indexes bounced back from recent losses on Wednesday as concerns over a default by China's Evergrande eased, with investors now awaiting policy cues from a Federal Reserve meeting later in the day.
The S&P and the Dow were headed for their best day in two months after Evergrande's main unit said it had negotiated a deal with bondholders to settle interest payments on a domestic bond, calming fears of an imminent default that could unleash global financial chaos.
Heavyweight technology names were the biggest boost to the S&P 500 and the Nasdaq, while the Dow Jones was supported by big banks tracking Treasury yields.
Wall Street indexes are nursing steep losses in September, as fears of an Evergrande default exacerbated seasonally weak trends and saw investors pull out of stocks trading at lofty valuations.
As of Tuesday's close, the S&P 500 had tumbled 4.2% from an intraday record high hit earlier in the month.
Uncertainty over U.S. fiscal spending and a potential hike in corporate taxes have also chipped away at stocks this month.
Focus now turns to the Fed's decision, due at 2 p.m. ET (1800 GMT) where the bank could possibly unveil plans to begin scaling back its massive coronavirus-related stimulus measures.
Positive readings on retail sales and factory activity this month had strengthened expectations for a taper announcement from the central bank by as soon as September.
But weakness in the stock market had analysts questioning whether the Fed would risk further volatility, given that any concrete announcement on tapering would likely trigger more stock selling.
The stock market turmoil and fiscal uncertainty would give Fed Chair Jerome Powell "convenient excuses to reiterate his intent to taper, but allow him to fall short of actually committing to a November start to tapering," said Danielle DiMartino Booth, CEO and chief strategist of Quill Intelligence.
At 11:50 a.m. ET, the Dow Jones Industrial Average rose 475.84 points, or 1.40% , to 34,395.68, the S&P 500 gained 54.62 points, or 1.25 %, to 4,408.73 and the Nasdaq Composite gained 169.77 points, or 1.16 %, to 14,916.92.
Despite the day's gains, analysts questioned whether stocks would retain their momentum, given the sharp spike in volatility seen this week.
"We're going to see a little bit more volatility till there are new leaders leading the way," said Paul Feinstein, chief executive officer of Audent Global Asset Management.
"The markets are trying to digest what the next six-nine months are going to look like, especially with all the news coming out of China."
Among individual stocks, FedEx Corp tumbled 8% on posting a lower quarterly profit, and as the delivery firm cut its full-year earnings forecast.
Advancing issues outnumbered decliners by a 6-to-1 ratio on the NYSE and by a about a 3-to-1 ratio on the Nasdaq.
The S&P 500 posted three new 52-week highs and eight new lows, while the Nasdaq recorded 45 new highs and 50 new lows. (Reporting by Ambar Warrick and Medha Singh in Bengaluru; Editing by Shounak Dasgupta and Maju Samuel)
Sep.22 — Tsao Family Office CEO Bryan Goh expects slower growth from efficiency versus robustness trade off. He was speaking with Haslinda Amin and Rishaad Salamat on "Bloomberg Markets: Asia."
SoFi Technologies Inc.'s strong product portfolio could help lift its shares roughly 50% higher, according to one analyst's model—and that's on top of an 10% rally Wednesday.
(Reuters) -Federal Reserve Chair Jerome Powell said on Wednesday that the Fed is closely monitoring efforts by Wells Fargo & Co to fix its "widespread and pervasive" problems, and that it would take appropriate actions if the bank failed to do so. In 2018, the Federal Reserve ordered Wells Fargo to keep its assets below $1.95 trillion until it had improved its governance and risk controls following sales practice scandals. Powell said on Wednesday that the bank's asset cap would stay in place until the firm has comprehensively fixed its problems, suggesting the bank had a ways to go before it would be allowed to expand in size.
The Federal Reserve on Wednesday cleared the way to reduce its monthly bond purchases "soon" and signaled interest rate increases may follow more quickly than expected, with nine of 18 U.S. central bank policymakers projecting borrowing costs will need to rise in 2022. The actions, which were included in the Fed's latest policy statement and separate economic projections, represent a hawkish tilt by a central bank that sees inflation running this year at 4.2%, more than double its target rate, and is positioning itself to act against it. The current target interest rate was held steady in a range of 0% to 0.25%.
The three major U.S. stock indexes rose 1% on Wednesday as investors mostly took in stride the latest signals from the Federal Reserve, including clearing the way for the central bank to reduce its monthly bond purchases soon. The S&P 500 registered its biggest daily percentage gain since July 23. While trading was choppy following the Fed's latest policy statement and comments by Fed Chair Jerome Powell, stocks finished close to where they were before the central bank news.
Wells Fargo maintained its underweight stock rating based on the company's "controversial" story.
The People's Bank of China vowed to stop all companies from facilitating cryptocurrency trading.
The social media tailwinds pushed Canoo's shares up by 13.4% for the day, and apparently took several other EV stocks along for the ride, including the embattled truck maker Lordstown Motors and battery start-up Quantumscape. Lordstown Motors shares have been buzzing since late August when the company announced the hiring of new CEO Daniel Ninivaggi, who brings with him rich experience in the automotive industry. Investors hope that Ninivaggi can help turn the company's fortunes around and address some pressing concerns, such as the ongoing investigations into Lordstown for allegedly inflating production and demand numbers for its Endurance pickup.
An investment arm of Chinese e-commerce giant Alibaba Group Holding Ltd, targeted in a regulatory crackdown, will divest its entire stake of 5.01% in broadcaster Mango Excellent Media Co Ltd, the media firm said. The sale comes less than a year after the investment in December last year, as Chinese authorities mount an anti-trust crackdown on large tech companies. One major target has been Alibaba, which faced a fine of $2.75 billion over anti-competitive practices.
With a market cap of $2.43 trillion, Apple (AAPL) is the world’s biggest company – the giant amongst giants. While most on the Street foresee more growth on the horizon, one analyst has just taken expectations to the next level. Tigress' Ivan Feinseth has just reiterated a Strong Buy rating for the tech behemoth and attached a Street-high price target of $198. The implication for investors? Upside of 35% from current levels. (To watch Feinseth’s track record, click here) The 5-star analyst count
Chinese Estates, which is controlled by Hong Kong billionaire Joseph Lau and his wife, Chan Hoi-wan, said it had recently pared its stake in Evergrande and it was seeking shareholder approval to potentially sell the remainder.
Yahoo Finance's Ines Ferre breaks down the key takeaways from Nike's Q1 earnings release.
Palantir Technologies Inc (NYSE: PLTR) was flying over 5% higher on Thursday propped up by overall market strength and continued interest in the r/WallStreetBets community of retail traders. The stock has been trading in a steep uptrend since reaching a July 19 low just above the $20 mark. Options traders hammered bullish call contracts throughout the day believing the stock has more room to run. The options traders purchased over millions worth of calls with one trader paying $201,150 for a sin
In the face of powerful stock market strength, it's important to focus on the long term for the best results.
Shares of Plug Power Inc. rallied Thursday, after Piper Sandler analyst Pearce Hammond turned bullish on the hydrogen and fuel cell systems company, citing valuation and "tremendous forward momentum" on its green hydrogen plans.
One sector of the market has truly tanked. Here is the ugly, but true data.
'Financial institutions and non-bank payment institutions cannot offer services to activities and operations related to virtual currencies,” the People’s Bank of China says Friday.
We are going to take the expected fundamental performance for the company and build a simple discounted cash flow model (valuation), in order to help investors get more clarity on what kind of performance they need to expect from management if they want the stock price to converge with the value of Lucid.
The tax strategy at issue is the mega-backdoor Roth conversion and it has allowed some Americans to amass sizable balances in tax-free Roth retirement accounts. On Sept. 15, the House Ways and Means Committee approved legislation from House Democrats that would prohibit use of the mega-backdoor Roth conversion starting Jan. 1, 2022. The proposal is one of a series of measures Democrats are backing in an effort to prevent the wealthiest Americans from shielding multimillion-dollar retirement balances from taxes.
ARK Invest buys more into a pair of sports betting plays and one of its largest holdings that has come under pressure lately.
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