Dow jumps 200 points after earnings release

live4 updates

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  Tuesday, April 16, 2024, 9:34am EDT

  stock eye comeback

  The Dow rose about 200 points on Tuesday as the market focused on a broad rally to end a six-day losing streak.

  The Dow Jones Industrial Average (^DJI) rose about 0.6%, while the S&P 500 (^GSPC) remained flat. The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, fell by about 0.1%.

  Bond yields continued to rise after the 10-year Treasury yield (^TNX) hit a 2024 high on Monday. The yield rose about 4 basis points and was trading at about 4.66% as of early Tuesday.

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  Tuesday, April 16, 2024, 7:55am EDT

  Talking about interest rates and markets with BNY Mellon’s CEO

  I just had a nice post-earnings chat with BNY Mellon (BK) CEO Robin Vince (they reported a 2% stock build this morning pre-market).

  I appreciate his thoughts on interest rates and markets (below; I took them as inflationary!)

  “When you think about the evolution of interest rates, there are several things that are happening in the world. Obviously, we have geopolitical risks and there is a potential for an escalation of the ongoing situation. [Israel/Iran] Conflict – it’s certainly a risk. The US has consistently had relatively high inflation, which is obviously a bit of a risk. Therefore, questions arise about the development of interest rates. Financial difficulties continue in the United States, [high] The amount of U.S. Treasury securities issued in terms of volume. This may be very good for our businesses, but as citizens and taxpayers, we should be a little concerned about the fate of America’s debt sustainability. So there’s a lot going on.

  Now, let me tell you the flip side. Because what we’re seeing is very strong fundamental support for the U.S. economy, and that’s not to say that a correction in the stock market won’t happen at some point. There’s a good chance that’s the case. happen. It’s not impossible that a recession will occur at some point. It’s inevitable at some point. But if you look at the advantages that the United States currently has, relative to the rest of the world, it has a number of significant advantages. It’s a great investment. You hear that from CEOs all over the world. This can be seen from the fact that investors are pouring money into the US, and from the performance of the stock market, there are many tailwinds in the market right now. So I think it’s a place where you have to be prepared for any eventuality. The Fed will likely leave policy unchanged. Is there a chance the Fed will cut rates this year? probably. Is it possible that the Fed will raise interest rates? It’s not impossible. We have to be prepared, but at the same time, the fundamental direction of U.S. travel is pretty positive. ”

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  Tuesday, April 16, 2024, 7:02 AM EDT

  brings in profits for starbucks

  Starbucks (SBUX) earnings are expected to be released in the coming weeks, but the notes I read say the report could be ugly.

  Most of the concerns about Starbucks right now stem from declining store foot traffic in the U.S., in part because of the rising prices of what Starbucks sells. A week ago, I paid $7 for a Venti cold beer at a store in New York (I’m cutting back on my trips to Starbucks)!

  Bernstein went out this morning to get a fresh look at the store’s crowding, and it wasn’t looking great.

  starbucks stock year to date:-11.3%.

  

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  Tuesday, April 16, 2024, 6:56 a.m. EDT

  This morning’s market price….

  Stocks fell across the board this morning following Monday’s strong retail sales report.

  Investor indecision is due to investors still clinging to expectations for a June rate cut, but given April’s macro trends, it seems unlikely that a rate cut will materialize. It will be done.

  I think the strategy team at JPMorgan is giving an honest view of the market this morning, as if to level the playing field for investors.

  “For a market that relies on complete inflation deflation, a dovish Fed response, and reduced tail risks to growth, continued strong growth and inflation data will result in a tightening of stock and bond risk premia. may reach a tipping point that ultimately creates a market correction.” Inflation risks are further exacerbated by geopolitical developments related to Russia and the risk of further escalation in the Middle East. Additionally, investor allocations are at historically low levels. ”