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Wall St. reaches new highs as China moves to limit coronavirus impact

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(Reuters) – U.S. stocks gained for a fourth straight session on Thursday and Wall Street’s main indexes hit record highs as concerns eased over the economic fallout from the coronavirus outbreak in China.

China said it would halve additional tariffs levied against some U.S. goods, seen by analysts as a move to boost confidence after the fast-spreading coronavirus disrupted businesses and sparked broad market volatility.

“The one primary thing that everyone has been listening to and watching and seeing how it moves the market has been the coronavirus,” said Jonathan Corpina, senior managing partner for Meridian Equity Partners in New York. “The headlines have been somewhat neutral lately, and that has been acceptable for the markets.”

Adding to the optimism for stocks were data showing that the number of Americans filing for unemployment benefits dropped to a nine-month low last week, with investors casting an eye toward Friday’s monthly U.S. employment report.

The Dow Jones Industrial Average .DJI rose 88.92 points, or 0.3%, to 29,379.77, the S&P 500 .SPX gained 11.09 points, or 0.33%, to 3,345.78 and the Nasdaq Composite .IXIC added 63.47 points, or 0.67%, to 9,572.15.

Among S&P 500 sectors, communication services .SPLRCL and technology .SPLRCT led the way, while energy .SPNY fell the most.

Even with optimism about containing the broad economic damage from the coronavirus, the impact of the health emergency in China continued to show up in corporate reports. Chipmaker Qualcomm Inc (QCOM.O) flagged a potential threat to the mobile phone industry from the outbreak. Its shares fell 0.3%.

Investors were also digesting the acquittal on Wednesday of U.S. President Donald Trump on impeachment charges.

“The outcome was fairly well telegraphed and I think widely believed, but it ends the chapter for now and I think that is a modest positive for investor sentiment,” said James Ragan, director of wealth management research at D.A. Davidson in Seattle.

With the fourth-quarter corporate reporting season more than halfway completed, S&P 500 companies are expected to have increased earnings by 2.1% for the period, according to IBES data from Refinitiv.

In earnings news, Becton Dickinson and Co (BDX.N) shares slid 11.8%, contributing the biggest drag on the S&P 500, after the medical technology company cut its 2020 forecast.

Kellogg (K.N) shares slumped 8.5% after the breakfast cereal maker forecast full-year earnings that widely missed market expectations.

Twitter shares (TWTR.N) soared 15.0% after the social media company reported $1 billion in quarterly revenue for the first time.

Philip Morris International shares (PM.N) rose 2.7% after the tobacco company released results.

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., February 6, 2020. REUTERS/Lucas Jackson

Advancing issues outnumbered declining ones on the NYSE by a 1.07-to-1 ratio; on Nasdaq, a 1.11-to-1 ratio favored decliners.

The S&P 500 posted 62 new 52-week highs and no new lows; the Nasdaq Composite recorded 122 new highs and 41 new lows.

About 7.3 billion shares changed hands in U.S. exchanges, below the 7.7 billion daily average over the last 20 sessions.

Reporting by Lewis Krauskopf; Additional reporting by Medha Singh in Bengaluru; Editing by Leslie Adler and Alistair Bell

Our Standards:The Thomson Reuters Trust Principles.

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Trump touts stock market’s record run, but who benefits?

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(Reuters) – Donald Trump loves to trumpet the hot U.S. stock market as a key achievement of his presidency, and he was in full self-congratulatory mode on that front during Tuesday night’s State of the Union address.

U.S. President Donald Trump delivers his State of the Union address to a joint session of the U.S. Congress in the House Chamber of the U.S. Capitol in Washington, U.S. February 4, 2020. REUTERS/Leah Millis/POOL

“All of those millions of people with 401(k)s and pensions are doing far better than they have ever done before with increases of 60, 70, 80, 90 and 100 percent and even more,” Trump said in his address to a joint session of Congress.

While pensions and retirement funds were lifted by the rise in stock markets, the president has avoided talking about one key point about who really benefits when the market rallies: Most of the gains go to the small portion of Americans who are already rich.

That’s because 84% of stocks owned by U.S. households are held by the wealthiest 10% of Americans, according to an analysis of 2016 Federal Reserve data by Edward Wolff, an economics professor at New York University. So when the stock market has a blockbuster year – such as the nearly 30% rise in the S&P 500 benchmark index in 2019 – the payoff primarily goes to people who are already rich.

“For most Americans, a stock price increase is pretty immaterial to their well-being,” said Wolff, who published a paper about wealth inequality in the National Bureau of Economic Research in 2017.

Roughly half of Americans own some stocks through a brokerage account or a pension or retirement fund. But for most people, the exposure is too small for market gains to be life-changing or leave them feeling much better about their finances, Wolff said. “They’ll see a small increase in their wealth, but it’s not going to be anything to write home about,” he said.

Graphic: The stock boom’s unequal gains png, here

What’s more, nearly 90% of families who own stock do so through a tax-deferred retirement account, meaning they can’t access the money until they reach retirement age, unless they pay a penalty, Wolff said.

So who owns most of the stock market? The majority of corporate equities and mutual fund shares are held by investors who are white, college educated and above the age of 54, according to an analysis from the Center for Household Financial Stability at the Federal Reserve Bank of St. Louis.

The typical middle-class family gets the bulk of its wealth from the housing market. Households in the middle three quintiles of wealth held 61.9% of their assets in their principal residence in 2016, according to Wolff’s analysis. That compares to households in the top 1%, who held 7.6% of their wealth in their homes.

Because most consumers accumulate the majority of their wealth through their homes, a rise in property values can provide a more substantial boost to household wealth than a stock market rally, said William Emmons, lead economist at the St. Louis Fed’s Center for Household Financial Stability.

Still, the recent revival in the housing market, spurred in part by the Federal Reserve’s interest rate cuts, is not helping all Americans equally. Rising property values benefit homeowners but make it harder for aspiring home buyers to break into the market, said Eugene Steuerle, co-founder of the Tax Policy Center, a joint venture between the Urban Institute and the Brookings Institution.

And some people who bought homes immediately before the recession hit may still be trying to recover their losses, Steuerle said. Their wealth may have been wiped out by foreclosure, meaning they then struggled to qualify for a new mortgage during the recovery, he said.

That’s in sharp contrast to well-off investors, whose overall wealth surged after the crisis thanks to strong returns on stocks, property and other investments. Some 72% of wealth accumulated between the third quarter of 2009 and the third quarter of 2019 went to the richest 10% of households, according to an analysis by Oxford Economics. Over that same time period, the poorest 50% of households reaped only 2% of wealth gains.

“There are a lot of families that have not yet recovered from the financial crisis,” Emmons said.

Some more evidence that the recent stock market boom is not making everyone feel richer: There has been little evidence of the “wealth effect,” which says that people tend to spend more when stock markets are up, said Lydia Boussour, a senior economist for Oxford Economics.

Since the recession, people have mostly continued to increase their savings even as the stock market rose. “Consumers are a lot more cautious,” she said.

Reporting by Jonnelle Marte; Editing by Dan Burns and Leslie Adler

Our Standards:The Thomson Reuters Trust Principles.

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Leaders Of Tomorrow | Season 7 | Mysuru Ground Event



On this episode of Leaders of Tomorrow, we bring you a special panel from Mysuru, the cultural capital of Karnataka. On this panel, our expert panelists discuss the emerging tech and tourism in Mysuru. Tune in to this episode to understand more about the startup ecosystem in Mysuru and how can entrepreneurs explore various sectors in the city.

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Sheroes founder Sairee Chahal on Startup Central



Watch ‘The Huge Bull’ Rakesh Jhunjhunwala applaud Modi’s imaginative and prescient of a $ 5 trillion economic system

Construct secure, excessive belief and high-empathy area are the necessities to work at Sheroes in accordance with the founder, Sairee Chahal. The biggest community of ladies on this planet goals to take social commerce to at least one million ladies. What’s the future technique for Sheroes and which nation’s ladies are the most effective to lend to? Tune in to StartUp Central for the total interview!

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Mfis Defying The Gloom | Credit score Entry Grameen To ET NOW



Regardless of an financial slowdown, the MFI sector continues to outperform. Udaya Kumar of Credit score Entry Grameen Ltd says that demand and legal responsibility requirement …

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Must you purchase a subscription to sovereign gold sequence IV? | The Cash Present



Do you’ve got a monetary objective in thoughts? Optimise your funds by sending your queries and getting professional opinions on find out how to prune your portfolio to maximise wealth era. Must you spend money on gold sequence IV? Tune in to The Cash Present with Mubina Kapasi to search out out extra!

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Wall Avenue falls as vitality drags; focus shifts to Fed assembly

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(Reuters) – U.S. shares edged decrease on Tuesday as a drop in oil costs weighed on the vitality sector, whereas buyers stayed away from making huge bets forward of the Federal Reserve’s two-day coverage assembly, the place it’s extensively anticipated to chop rates of interest.

Merchants work on the ground on the New York Inventory Alternate (NYSE) in New York, U.S., September 9, 2019. REUTERS/Brendan McDermid

The vitality index .SPNY fell 1.59% and was the most important drag on the benchmark S&P 500 index .SPX after sources instructed Reuters that Saudi Arabia was near restoring 70% of the oil manufacturing misplaced after weekend assaults on its greatest refinery.

The sector recorded its finest one-day surge since January on Monday.

The U.S. central financial institution concludes its coverage assembly on Wednesday, with merchants at present anticipating a 65.8% likelihood of 1 / 4 proportion level reduce from the Fed this week, down from 88.8% on Friday, in response to CME’s FedWatch.

Fee-sensitive financial institution index .SPXBK was down 1% in anticipation of a discount in borrowing prices.

“It’s simply typical buying and selling on the vigil of a Fed assembly,” stated Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

“We haven’t seen any panic from what occurred over the weekend. I believe (the Fed) will keep on with 1 / 4 of a proportion level reduce even after the Saudi assault.”

For the reason that final rate of interest reduce in July, U.S. financial information has proven blended indicators concerning the home economic system. Whereas robust retail gross sales and wage progress have bolstered shopper confidence, a protracted U.S.-China commerce conflict has weighed on manufacturing and enterprise sentiment.

Newest information confirmed U.S. manufacturing output elevated greater than anticipated in August, rebounding from a drop in July.

At 10:04 a.m. ET, the Dow Jones Industrial Common .DJI was down 58.03 factors, or 0.21%, at 27,018.79, the S&P 500 .SPX was down 1.03 factors, or 0.03%, at 2,996.93. The Nasdaq Composite .IXIC was down 3.29 factors, or 0.04%, at 8,150.26.

Amongst shares, Residence Depot Inc (HD.N) dropped 1.6% after Guggenheim downgraded the house enchancment chain’s shares to “impartial” from “purchase”.

Corning Inc (GLW.N) tumbled 7.8% after the Gorilla glass maker reduce its current-quarter show quantity forecast.

Kraft Heinz Co (KHC.O) slipped 3.7% after the packaged meals maker’s second-largest investor, 3G Capital, bought over 25 million shares in open market at a reduction.

Deputy-level commerce talks between the USA and China are set to renew on Thursday, however any settlement between the 2 sides is anticipated to be a superficial repair at this stage.

Tariff concessions from each nations final week helped the benchmark S&P 500 come inside 1% of its all-time excessive touched in July.

Declining points outnumbered advancers for a 1.59-to-1 ratio on the NYSE and a 1.77-to-1 ratio on the Nasdaq. The S&P index recorded six new 52-week highs and one new low, whereas the Nasdaq recorded 24 new highs and 10 new lows.

Reporting by Medha Singh and Shreyashi Sanyal in Bengaluru; Enhancing by Anil D’Silva

Our Requirements:The Thomson Reuters Belief Rules.

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Wall Avenue set to open decrease after Saudi assaults; vitality shares surge

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(Reuters) – Wall Avenue was set to open decrease on Monday because the weekend assault on Saudi Arabian oil services knocked out 5% of the world’s provide, sparking issues over world financial development and heightening tensions within the Center East.

FILE PHOTO: Merchants work on the ground on the New York Inventory Change (NYSE) in New York, U.S., September 12, 2019. REUTERS/Brendan McDermid

The assault on the world’s largest oil exporter despatched oil costs up as a lot as 20% earlier than they eased off their peaks as U.S. President Donald Trump approved using the nation’s emergency oil stockpile to make sure steady provides. [O/R]

“The Dow futures aren’t down too terribly at this level, so we’ll have to attend and see,” mentioned Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.

“I’d fear extra about what occurs down the road and the elevated uncertainty, prospects for navy motion.”

Shares of vitality firms soared, with the S&P 500-listed Marathon Oil Corp MRO.O, Devon Vitality Corp (DVN.N), Concho Sources Inc (CXO.N) and Apache Corp (APA.N) up between 9.7% and 12.8%. Oil majors Exxon Mobil Corp (XOM.N) and Chevron Corp (CVX.N) superior greater than 3.4%.

From a inventory perspective, the provision disruptions ought to put a bid into U.S. vitality shares, which have meaningfully lagged the broader market, JPM analysts wrote in a notice.

“Specifically, we might see a optimistic transfer within the oily small and mid-cap group,” the analysts wrote.

The S&P 500 vitality .SPNY sector’s 5.6% rise this 12 months was a lot beneath the 20% climb for broader S&P 500 .SPX.

In the meantime, shares of airways and cruise line operators dropped in anticipation of upper gas prices. American Airways Group Inc (AAL.O), Delta Air Traces Inc (DAL.N) and Carnival Corp (CCL.N) fell between 3% and 5%.

Traders’ flight to security lifted gold costs, the Japanese yen JPY= and despatched the U.S. benchmark 10-year Treasury bond yields US10YT=RR down sharply from their multi-week highs.

Curiosity-rate delicate banks corresponding to Financial institution of America Corp (BAC.N), Citigroup Inc (C.N), JPMorgan Chase & Co (JPM.N) and Morgan Stanley (MS.N) have been down greater than 1%. [US/]

This week’s centerpiece is the Federal Reserve’s financial coverage resolution on Wednesday the place the central financial institution is broadly anticipated to ship the second rate of interest lower this 12 months of 1 / 4 foundation factors.

Hints on whether or not the central financial institution will maintain easing its financial coverage will probably be essential in figuring out how lengthy Wall Avenue’s sturdy rally will final.

Cooling commerce tensions between america and China final week has introduced the benchmark S&P 500 .SPX lower than 1% beneath its document excessive.

At 8:26 a.m. ET, Dow e-minis 1YMcv1 have been down 89 factors, or 0.33%. S&P 500 e-minis EScv1 have been down 9.25 factors, or 0.31% and Nasdaq 100 e-minis NQcv1 have been down 39.75 factors, or 0.5%.

Amongst different movers, Common Motors Co (GM.N) fell 2.4% after the United Auto Employees (UAW) went on strike on Sunday, the primary nationwide strike at GM in 12 years.

Reporting by Medha Singh and Ambar Warrick in Bengaluru; Enhancing by Saumyadeb Chakrabarty and Arun Koyyur

Our Requirements:The Thomson Reuters Belief Ideas.

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Trade optimism, Apple push Wall Street slightly higher

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(Reuters) – U.S. stocks rose slightly on Wednesday as China’s move to ease trade tensions with the United States soothed investor nerves, while shares of Apple gained a day after the launch of its latest iPhones.

FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., September 9, 2019. REUTERS/Brendan McDermid

Apple Inc (AAPL.O) rose 1.79% and provided the biggest boost to all three major indexes, a day after it unveiled new iPhones and rolled out a streaming TV service at a price that undercuts Disney (DIS.N) and Netflix (NFLX.O).

The gains took the Silicon Valley giant’s market valuation just shy of $1 trillion and lifted the wider technology sector .SPLRCT.

Adding to the positive momentum, China’s finance ministry exempted 16 types of U.S. goods from additional retaliatory tariffs, ahead of a planned meeting between trade negotiators.

While the move is seen as a friendly gesture to thaw relations with the United States, analysts are skeptical about how much it will move the needle in resolving a trade war that has hurt the global economy.

“The exemption could be seen as a gesture of sincerity toward the US ahead of negotiations in October, but is probably more a means of supporting the (Chinese) economy,” Iris Pang, a Greater China economist with ING, wrote in a note.

Comments from a senior White House adviser on Tuesday urging investors to be patient about resolving the dispute further downplayed expectations that a trade deal would be agreed this year.

Markets were largely subdued as investors held out on big bets ahead of stimulus decisions from central banks to stem a global slowdown. The U.S. Federal Reserve and the European Central Bank are expected to cut interest rates at their policy meetings over the next two weeks.

U.S. President Donald Trump on Wednesday renewed his attacks on Fed Chairman Jerome Powell, saying that the central bank should get interest rates down to “ZERO, or less.”

“People will be interested to hear what is going to be said (by the Fed) next week, so until then, barring something unexpected, things will be quiet,” said Andre Bakhos, managing director at Janlyn Capital LLC in Bernardsville, New Jersey.

At 10:15 a.m. ET, the Dow Jones Industrial Average .DJI was up 26.56 points, or 0.10%, at 26,935.99, the S&P 500 .SPX was up 6.69 points, or 0.22%, at 2,986.08 and the Nasdaq Composite .IXIC was up 46.24 points, or 0.57%, at 8,130.40.

Energy stocks .SPNY led gains on the S&P 500, with Exxon Mobil Corp (XOM.N) and Chevron Corp (CVX.N) providing the biggest boost to the sector.

Among other stocks, shares of Micron Technology Inc (MU.O) rose 3.10% after Longbow Research upgraded its stock to “buy”.

Wynn Resorts Ltd (WYNN.O) fell 2.44% and was among the biggest losers on the S&P 500 after the hotel operator announced a $750 million debt offering.

Advancing issues outnumbered decliners by a 2.09-to-1 ratio on the NYSE and by a 2.34-to-1 ratio on the Nasdaq.

The S&P index recorded 13 new 52-week highs and no new low, while the Nasdaq recorded 28 new highs and eight new lows.

Reporting by Uday Sampath in Bengaluru; Editing by Saumyadeb Chakrabarty and Arun Koyyur

Our Standards:The Thomson Reuters Trust Principles.

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Buyers search for client strain forward of subsequent tariffs

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(Reuters) – As President Donald Trump prepares to slap new tariffs on Chinese language imports, traders are bracing for indicators of strain on U.S. customers as prime retailers start reporting quarterly outcomes subsequent week and key client sentiment and retail gross sales information is launched.

Buyers and analysts are anxious concerning the influence of Trump’s deliberate 10% tariff on the remaining $300 billion in Chinese language imports, which is able to largely have an effect on client items, not like the earlier spherical that fell closely on industrial and enterprise merchandise. That may very well be a double-whammy for the U.S. economic system, which is about 70 % pushed by customers, and retailers.

Mona Mahajan, U.S. funding strategist at Allianz World Buyers in New York, is amongst analysts specializing in the fallout from the tariffs, noting that the deliberate new spherical will “disproportionately” influence client items.

“We’ll be watching the information notably round retail gross sales and client confidence,” Mahajan stated. “We’ll proceed to observe the softening in manufacturing and inflation as properly, however extra necessary for the U.S. financial image is the patron proper now.”

July retail gross sales information is due out on Thursday. Excluding autos, gross sales are anticipated to have grown 0.3% in contrast with 0.4% in June, in response to a Reuters ballot. On Friday, The College of Michigan’s preliminary August studying of client sentiment is predicted to point out a slip to 97.7 from 98.Four in July.

The S&P Retail index .SPXRT fell a complete of 5.3% within the first three buying and selling classes following Trump’s Aug. 1 tariff announcement. As of Thursday’s market shut, the index was down 1.6% for the month up to now.

UBS analyst Jay Sole stated fears that the tariffs might ultimately improve to 25% have been additionally an overhang for shares. Morgan Stanley has estimated that 25% tariffs would result in a worldwide recession.

Retailers can have the dilemma of deciding whether or not to go the tariffs on to customers within the type of increased costs or take in the upper prices, which would cut back revenue margins.

“When you’re in a aggressive surroundings you’re going to take some motion to maintain your prospects,” stated Charles East, an fairness analyst protecting client firms at SunTrust Non-public Wealth Administration, who stated that malls are notably susceptible.

“I actually don’t suppose they will push costs up as a result of their gross sales are already weak,” East stated. “The margins are beneath strain. Maybe they will speed up cost-cutting.”

With two thirds of U.S. footwear coming from China, for instance, UBS’s Sole will search for feedback in earnings calls and statements on how retailers and footwear firms plan to deal with the tariffs.

“It’s an enormous deal. Our assumption is that there might be an try to lift costs on the products,” Sole stated.

“We expect customers are going to withstand these value will increase,” he added, citing a UBS survey of seven,660 customers in July that confirmed 77% of respondents have been anxious the China commerce battle would trigger costs to rise.

Retailers reporting subsequent week embrace Macy’s Inc (M.N), Walmart Inc (WMT.N) and Tapestry Inc (TPR.N), whose manufacturers embrace Coach, Kate Spade and Stuart Weitzman. The next week Kohls Corp (KSS.N), Goal (TGT.N) and Nordstrom Inc (JWN.N) will all report.

The S&P Client Discretionary index .SPLRCD, which incorporates huge retailers, is predicted to report a 1.2% improve in second-quarter earnings, in response to IBES information from Refinitiv.

However estimates for the remainder of the 12 months have been falling. Wall Road now expects third-quarter earnings development of 1.8% in contrast with a 6.8% expectation on July 1 whereas the fourth-quarter estimate has fallen to six.5% from 9.8%.

FILE PHOTO: A lady outlets at a Walmart in Westbury, New York, U.S., November 15, 2018. REUTERS/Shannon Stapleton

Mitigating elements for client firms embrace a robust labor market, low inflation, declining rates of interest and low gasoline costs, in response to David Pleasure, chief market strategist at Ameriprise Monetary in Boston.

However Pleasure cautioned that latest power within the Convention Board’s Client Confidence index might not final.

“When confidence is at most of these ranges, it might have peaked and can decline if the economic system slows additional or the inventory market sells off sharply,” he stated.

Reporting by Sinéad Carew; Enhancing by Leslie Adler

Our Requirements:The Thomson Reuters Belief Ideas.

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