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Stock MarketsJun 28, 2021 03:31PM ET

Big Banks, Consumer Confidence, Oil Stocks: 3 Things to Watch© Reuters.

By Dhirendra Tripathi

Investing.com — Stocks gave back some gains after reaching intraday highs early, and Facebook (NASDAQ:) got a late afternoon boost that propelled its market value above the $1 trillion mark.

A federal judge tossed out the government’s antitrust lawsuit against Facebook Inc (NASDAQ:), ruling the Federal Trade Commissions and states don’t have valid claims.

Facebook surged 3.6% Monday, and the tech-heavy rose 0.9%. The was essentially flat for much of the day but finished up at another record. The blue chips dipped into the red.

Most investors are watching for the government’s jobs report for June, which comes out on Friday. 

Energy slipped more than 3% as oil prices came under pressure ahead of the OPEC meeting Thursday. Major oil producers are expected to decide to increase production starting in August after already planned production hikes in July.

Here are three things that could affect markets tomorrow:

1. Banks seen hiking payouts

Big banks are expected to announce dividend and buyback plans for the coming year now that the group has comfortably passed the Federal Reserve’s latest round of stress tests. Watch Bank of America (NYSE:), Citigroup (NYSE:), JPMorgan Chase (NYSE:), and Wells Fargo (NYSE:) shares on Tuesday. All four are expected to announce their plans beginning after the closing bell tonight.

2. Consumer confidence

Consumer confidence in the U.S. is expected to have strengthened in June with Conference Board’s Index seen rising to 119 after declining to 117.2 in May. The number is released Tuesday at 10:00 AM ET (1400 GMT).

3. Oil inventories

Oil inventory data from the industry comes out Tuesday as scheduled after the closing bell. Inventories have fallen in previous weeks — they were down more than 7 million barrels in the prior week’s report — and that has been good news for oil investors. The American Petroleum Institute puts the number out at 4:30 PM ET.

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Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Oil Has First Meaningful Drop in a Week on OPEC Uncertainty, Asia Covid

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Commodities22 hours ago (Jun 28, 2021 04:38PM ET)

Oil Has First Meaningful Drop in a Week on OPEC Uncertainty, Asia Covid© Reuters.

By Barani Krishnan

Investing.com – Oil prices had their first meaningful drop in a week on Monday on uncertainty over production hikes that OPEC+ would likely agree to this week amid rising Covid cases in Asia.

New York-traded , the benchmark for U.S. oil, settled down $1.14, or 1.5%, at $72.91 per barrel. It was the lowest settlement for WTI since June 22.

London-traded , the global benchmark for oil, finished the session down $1.24, or 1.6%, at $74.14.

Prior to the selloff, WTI hit a 2018 high of $76.20 on Friday, while Brent hit a near three-year high of $76.20.

Even with Monday’s slide, the U.S. crude benchmark was up 50% on the year while the U.K. gauge showed a gain of around 45%.

The correction in the latest session came amid reports that OPEC+ at its meeting this Thursday could increase oil production by between 500,000 and 1 million barrels per day starting in August.

The 23-nation OPEC+ — comprising the 13-member Saudi-led Organization of the Petroleum Exporting Countries and its 10 Russian-steered allies — is meeting after months of sustained crude price hikes that some analysts fear might begin impacting demand. Some OPEC+ members led by Russia also want a substantial production hike to maximize revenue from current prices.

Much will, however, depend on whether Saudi oil minister Abdulaziz bin Salman will allow an output hike large enough to cool the market. 

Alternatively referred to as AbS by his initials, the minister surprised many by acknowledging last week that crude prices may have risen too much, too fast. “We have a role in taming and containing inflation, by making sure that this market doesn’t get out of hand,” he said.

Since AbS came to office a little less than two years ago, each OPEC+ meeting he’s chaired began with calls for significantly higher production quotas. The minister deftly shot each one down, reminding the output hawks in the group that there was something more important: The price of oil itself.

As a result of his efforts, compliance with production cuts in OPEC+ — a group often known for overpromising and under-delivering — has reached 122%. The over-compliance was basically due to one source — Saudi Arabia.

AbS’ determination in holding onto deep cuts — OPEC+ is still keeping almost 6 million barrels daily from the market — is evident from the mantra he recites each time he’s asked whether he’s happy about oil demand. His standard reply: “I will believe it when I see it.” 

Despite global inventories back at five-year seasonal trends; despite the market virtually draining all of the excess supply from the Covid-triggered glut; despite U.S. drillers pumping 2 million barrels less per day now than before the pandemic; and despite a barrel trading three times higher today than 15 months ago, the Saudi minister is still unconvinced about oil demand.

Market sources say that unless OPEC+ agrees to an August hike of more than 500,000 barrels daily, the crude rally is unlikely to lose its momentum.

Monday’s slide in oil also came on the back of a spike in Covid-19 cases in Asia. Australian authorities have placed Sydney and Darwin into lockdown and put other major cities on high alert, in an attempt to contain outbreaks of the highly contagious delta variant. 

Elsewhere in that region, Indonesia was battling record-high cases, Malaysia extended a national lockdown beyond Monday, and Thailand announced new restrictions in the capital Bangkok and its suburbs.

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Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

S&P 500, Nasdaq Close at Record on Tech Bets; Facebook Joins $1Tn Club

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Stock Markets23 hours ago (Jun 28, 2021 04:54PM ET)

S&P 500, Nasdaq Close at Record on Tech Bets; Facebook Joins $1Tn Club© Reuters.

By Yasin Ebrahim

Investing.com – The S&P 500 and Nasdaq closed at record highs Monday as a rally in Facebook and chip stocks pushed tech higher and offset an oil-led slump in energy ahead of a meeting by major oil producing nations later this week.

The rose 0.2% to another record intraday high of 4,290.61. The slipped 0.44%, or 150 points, the Nasdaq was up 0.98% to a record of 14,500.51. 

Tech rallied strongly led by Facebook after a federal court dismissed the Federal Trade Commission’s antitrust case against the social media giant. The FTC was seeking a permanent injunction in federal court that could have forced Facebook to sell Instagram and WhatsApp, and require that Facebook seek prior notice and approval for future mergers and acquisitions.

Facebook (NASDAQ:) closed more than 4% higher taking its market cap above $1 trillion for the first time ever. Microsoft (NASDAQ:, Apple (NASDAQ:), Amazon.com (NASDAQ:), and Google-parent Alphabet (NASDAQ:) also ended up.

Tech was also pushed higher by a jump in chip stocks with Nvidia (NASDAQ:) leading the charge, jumping 5%. Nvidia reportedly received support for its planned $40 billion takeover of ARM from the latter’s customers including Broadcom (NASDAQ:).

Energy slipped more than 3% as oil prices came under pressure ahead of the OPEC meeting Thursday. Major oil producers are expected to decide to increase production by 500,000 barrels per day from August, following the planned production hike by 800,000 barrels per day in July.

”If OPEC+ signals its willingness to produce more oil in the future, the price rally on the oil market should come to an end for the time being,” Commerzbank (DE:) said in a note.

Financials were one of the biggest decliners on the day following a slump in regional banks as falling soured investor sentiment on the sector.

People’s United Financial (NASDAQ:), Regions Financial Corporation (NYSE:) and Huntington Bancshares (NASDAQ:) led the downside, with the latter lower by 2%.

Lower interest rates hurt the return on interest that banks earn from their loan products, or net interest margin – the difference between the interest income generated by banks and the amount of interest paid out to depositors.

In aftermarket hours, bank stocks climbed, with Morgan Stanley (NYSE:) among the highlights after doubling its quarterly dividend and announcing a new $12 billion stock buyback.

The fall in U.S. government bond yields boosted demand for consumer staples and utilities, commonly used as a bond proxy given the sector’s steady dividends.

Boeing (NYSE:), closed 3% lower, dragging the broader industrials sector lower on a CNBC report, citing a letter from a Federal Aviation Administration official to Boeing, suggesting the aircraft maker is unlikely to receive certification for its 777X long-range aircraft until mid-to-late 2023 at the earliest.

In other news, Beachbody closed nearly 7% higher after making its trading debut on Monday.

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Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Facebook Wins Case, U.S. Banks Hand Back Cash, Covid – What’s Moving Markets

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EconomyJun 29, 2021 05:57AM ET

Facebook Wins Case, U.S. Banks Hand Back Cash, Covid - What's Moving Markets© Reuters.

By Peter Nurse

Investing.com — Facebook joins the $1 trillion club as it wins a legal skirmish. ECB policymakers spar over tapering, U.S. banks promise larger dividends,  crude slips ahead of OPEC+ meeting, while the U.K. feels more Covid pain. Here’s what’s moving markets on Tuesday, June 29th.

1. Facebook jumps on legal win

Facebook joined the $1 trillion club on Monday, boosted by the news that a U.S. judge dismissed the Federal Trade Commission’s antitrust case against the social media giant. 

Facebook (NASDAQ:) stock closed Monday over 4% higher, pushing the company’s market capitalization over $1 trillion for the first time, joining Apple (NASDAQ:), Microsoft (NASDAQ:), Amazon (NASDAQ:) and Alphabet (NASDAQ:) with that achievement.

The FTC was seeking a permanent injunction in federal court that could have forced Facebook to sell Instagram and WhatsApp, as well as requiring the company seeks approval for future mergers and acquisitions.

The dismissal was the first big blow to the various state and federal lawsuits levied against Big Tech firms, seeking to rein in alleged abuses of their massive market power. 

That said, it’s important to point out that the judge dismissed the complaint, rather than the case. He said the FTC could file an amended lawsuit within 30 days, adding that he took issue not with the fact that Facebook might have a monopoly, but with the FTC’s failure to provide a method to calculate the extent of its dominance.

Further twists and turns lie ahead.

2. Stocks seen mixed; Banks in focus

U.S. stocks are seen opening mixed Tuesday, with the and handing back gains after closing at record levels, ahead of potentially significant labor market data later in the week.

By 6:30 AM ET, were up 105 points, or 0.3%, were 0.4% higher and climbed 0.6%.

The majority of the main indices closed higher Monday, with the broad-based S&P 500 advancing 0.2%, its third consecutive record close, and the tech-heavy Nasdaq Composite gaining nearly 1%, also a new high, helped by strong gains by Facebook. The blue-chip , however, dipped 0.4%.

The banking sector is likely to be in focus Tuesday after the major U.S. lenders announced plans to boost their dividends in the wake of the Federal Reserve’s stress tests. Citigroup (NYSE:) bucked the trend, indicating it is keeping its dividend unchanged at 51 cents a share.  

Ahead of Friday’s key release, the economic data slate sees the release of the Conference Board’s at 10 AM ET (1400 GMT).

3. ECB policymakers spar over tapering

The debate about when to rein in its massive bond-buying program is starting to get heated in the European Central Bank, judging by comments this week by some of the central bank’s policymakers.

Both Germany’s Jens Weidmann and Austria’s openly discussed on Monday the winding down of the ECB’s 1.85 trillion euro Pandemic Emergency Purchase Programme.

“We don’t know yet but at the moment it looks like the end is in March,” Holzmann told a UBS virtual event.

However, these two belong to the hawkish side of the debate, and a known dove, Italy’s , was quick to respond.

“Experience shows that attempting to reduce the pace of asset purchases too early would lead to a tightening of financing conditions and a higher pace of purchases later,” he said.

This debate has legs.

4. U.K. feels pain from new variant

New U.K. Health Secretary Sajid Javid has his hands full. Appointed over the weekend after the hasty departure of predecessor Matt Hancock, he was greeted by the news that the country reported over 22,000 new Covid-19 cases on Monday, the highest level since late January.

Cases have risen steadily since the end of May, with the seven-day average going from around 3,500 to over 16,000.

The highly-contagious delta variant makes up the vast majority of these new cases, and this is resulting in the U.K. becoming more isolated. Hong Kong will ban all passenger flights from that part of the world from Thursday, its government announced Monday, while Spain has Tuesday taken U.K. visitors off its list for restriction-free travel.

Javid stated on Monday that the country was still on track for all restrictions to be officially lifted on July 19. But doubts remain. 

As an aside, British jumped by the most in more than 16 years this month, soaring by 13.4% from June 2020, according to Nationwide, as buyers rushed to take advantage of a coronavirus emergency tax break and sought bigger homes after their experiences of lockdown.

 5. Crude weakens; Covid cases rise ahead of OPEC+ 

Crude oil prices weakened Tuesday, retreating from recent highs as Covid cases rise, and ahead of a meeting of top producers later this week. 

By 7 AM ET, was down 0.5% at $72.57 a barrel, while was down 0.3% at $73.93, after reaching levels not seen since 2018 during last week’s trading.

Weighing on sentiment Tuesday has been growing concerns about the growth of Covid cases, not only in the U.K. but also a number of Asian countries, caused by the highly infectious delta strain. 

There was also an element of traders taking some money off the table ahead of Thursday’s meeting of the Organization of Petroleum Exporting Countries and its allies, a group known as OPEC+.

Expectations are growing of the group agreeing to an increase in supply in August, particularly after Bloomberg reported that the group’s Joint Technical Committee is set to see Tuesday figures that show that demand is poised to exceed supply by 1.7 million barrels a day in August.

Continuing the supply theme, estimates of weekly U.S. crude oil inventory data by the are due later in the day.

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Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Morgan Stanley, Boeing Rise Premarket; Tesla Falls

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Stock MarketsJun 29, 2021 08:14AM ET

Morgan Stanley, Boeing Rise Premarket; Tesla Falls© Reuters.

By Peter Nurse 

Investing.com — Stocks in focus in premarket trade on Tuesday, June 29th. Please refresh for updates.

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Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Comic: Spreading the Play – Will Delta Overwhelm Europe?

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Economy15 hours ago (Jun 29, 2021 11:05AM ET)

Comic: Spreading the Play - Will Delta Overwhelm Europe?© Investing.com

By Geoffrey Smith

Investing.com — As any soccer defender knows, the penalties for fouling are more serious if you spoil a particularly promising position for the other team.

Holders of travel and leisure stocks, in particular, must feel like they’ve been denied a clear goal-scoring opportunity in recent weeks by the Delta variant of the Covid-19 virus. If only there were a referee for whom they could roll around on the grass, exaggerating their pain…

It had all looked so good until a month ago, when the insidious Delta (first identified in India) started to become the dominant strain of the virus in the U.K. Over 40% more transmissible than previous strains, Delta has driven new case numbers in the U.K. from only 2,000 a day at the end of May to over 22,000 daily as of last week. The government accordingly postponed the full reopening of the hospitality and entertainment sectors by a month, but is still hoping to lift remaining restrictions on July 19.

But developments in the U.K. have rung alarm bells on a continent that was preparing to welcome millions of British tourists over the coming summer. In the last week alone, Portugal, Spain and Germany have all issued new restrictions on arrivals from Britain, harsh enough to deter significant numbers from travelling. Moreover, negative news flow about the strain is also likely to give those in other countries second thoughts about traveling to places where they may rub shoulders with Brits.

As a result, the ‘reopening trade’ in Europe has gone increasingly sour: International Airlines Group (LON:), the owner of British Airways, Iberia and Vueling, has fallen 15% in the last month, while Tui (LON:), the continent’s biggest tour operator, is down by a similar amount. Tui stock fell 4.8% on Tuesday alone after the company was forced to increase the size of a recent convertible note issue by 190 million euros ($226 million), the latest in a series of emergency capital increases since the pandemic began.

Spain’s Melia Hotels (MC:) has fallen over 10% this week after Madrid tightened its rules for arriving Brits, while Dufry (SIX:), the Swiss-based owner of duty-free shops, fell nearly 12%.

And yet, things could be far worse for the sector. German Chancellor Angela Merkel had pushed at an EU summit last week for a blanket EU-wide tightening of restrictions on U.K. arrivals. That was successfully resisted by southern European countries who are a) more exposed to tourism revenues and b) inherently wary of German power grabs.

There are justifications for a more lenient and nuanced approach: almost everyone over 50 in the U.K. is now fully vaccinated, which greatly reduces the risk of them transmitting the disease. Vaccination rates among the younger cohort have also increased as it has become clear that this is going to be a precondition for that yearned-for summer break. This is particularly important, given the large role played by the crowded clubs of Ibiza and Mallorca in reviving the virus across all of Europe last summer.

But there are reasons, too, why the continent should be scared. The U.K. has managed to avoid a parallel increase in hospital admissions due to Delta because of its relatively advanced vaccination campaign. Some 50% of all British adults are fully vaccinated, and vaccination has lived up to its promise of greatly reducing severe illness. But in Germany, the comparable number is only 36%. In France and Italy, it’s only 30%. The risk of hospital capacity coming under pressure again in those countries is, accordingly, more pronounced.

Either way. the Delta variant is coming to the continent sooner or later. It already accounts for 20% of cases in France, up from 10% a week ago. Lothar Wieler, president of Germany’s Robert Koch Institute (RKI), said on Tuesday that the variant now already represents more than 50% of registered cases in Europe’s largest economy.

In other words, if the previous pattern of the Covid-19 pandemic is any guide, those reopening trades don’t look like regaining their momentum any time soon.

https://www.investing.com/analysis/comics

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Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

U.S. dollar gains as new virus outbreaks seen undermining global recovery

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Economy7 hours ago (Jun 29, 2021 03:47PM ET)

U.S. dollar gains as new virus outbreaks seen undermining global recovery© Reuters. FILE PHOTO: Four thousand U.S. dollars are counted out by a banker counting currency at a bank in Westminster, Colorado November 3, 2009. REUTERS/Rick Wilking/File Photo

By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) – The U.S. dollar rose to a one-week peak on Tuesday, posting its largest single daily gain in roughly two weeks, as new coronavirus outbreaks threatened to derail a global economic recovery, with the Australian and New Zealand dollars leading losses.

A decline in risk appetite benefits the U.S. dollar as a safe haven.

Fears over the spread of the highly infectious Delta variant of the virus are denting sentiment at a time markets are on edge after the Federal Reserve shocked traders with a hawkish tilt earlier this month.

Indonesia is grappling with record high cases, while Malaysia is set to extend a lockdown and Thailand has announced new restrictions. Spain and Portugal are imposing travel restrictions on unvaccinated British travelers, even as some states in Australia tightened movement curbs.

“Generally it’s about increasing concerns over the Delta variant and it’s just hurting the market somewhat,” said Amo Sahota, director at corporate FX advisory firm Klarity FX in San Francisco.

“The market got its head turned with the severity of the some of the lockdowns in places such as Australia,” he added.

In afternoon trading in New York, the , a gauge of its value against six major currencies, rose 0.2% to 92.077, posting its biggest daily percentage gain since around mid-June.

The greenback’s correlation with general risk appetite as seen from the global daily caseloads of COVID-19 has weakened in recent weeks as market attention has been more focused on when the Fed will exit its massive policy stimulus. But that correlation has started to strengthen since last week.

“We went from a certain and stable background in Q2 to a lot more uncertainty going forward, and markets have to price that,” said Simon Harvey, senior FX market analyst at Monex Europe in London.

The dollar also got a boost after data showed U.S. consumer confidence increased in June to its highest level since the COVID-19 pandemic started more than a year ago. That lifted expectations for strong economic growth in the second quarter.

The euro declined 0.2% to $1.1896, edging back toward the 2-1/2-month low touched on June 18.

Investors are also looking to Friday’s U.S. nonfarm payrolls, with a new jobs forecast of 690,000 in June compared with 559,000 in May, according to a Reuters poll of economists.

“Stepped-up dollar buying is a sign of investor confidence that America’s June jobs report could be one of the year’s strongest,” said Joe Manimbo, senior market analyst at Western Union (NYSE:) Business Solutions in Washington.

Elsewhere, sterling gained 0.2% to $1.3842.

The Australian dollar, seen as a liquid proxy for risk appetite, fell 0.7% to US$0.7510 amid concerns over renewed COVID-19 lockdowns across parts of the country.

The New Zealand dollar was also lower in sympathy, down 0.7% at US$0.6988.

(Graphic: Global COVID cases, https://fingfx.thomsonreuters.com/gfx/mkt/xegpbzmlypq/Global%20COVID%20cases.JPG)

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Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Global shares edge lower on new COVID-19 outbreaks in Asia

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Economy9 hours ago (Jun 29, 2021 07:47PM ET)

2/2

Global shares edge lower on new COVID-19 outbreaks in Asia© Reuters. A man wearing a face mask is seen inside the Shanghai Stock Exchange building, as the country is hit by a novel coronavirus outbreak, at the Pudong financial district in Shanghai, China February 28, 2020. REUTERS/Aly Song/Files

2/2

(Updates with Asia futures, changes headline tag)

By Elizabeth Dilts Marshall

NEW YORK (Reuters) -Global shares edged lower on Tuesday, as new coronavirus outbreaks in Asia vied with strong U.S. and European consumer confidence, and investors speculated about whether the Federal Reserve would accelerate its timetable to end easy monetary policy.

The U.S. dollar rose to a one-week peak on safe-haven buying stoked by fears that the highly contagious Delta variant could derail a burgeoning economic recovery.

MSCI’s all country world index, which tracks shares across 50 countries, shed 0.06%, as declines in Asian equities undercut new highs in U.S and European markets.

The Nasdaq closed at a record high, boosted by technology stocks and a government survey showing U.S. consumer confidence in June hit its highest level since the pandemic started.

European shares ended higher after data there showed economic sentiment hit a 21-year high in June. The pan-European index closed 0.3% higher at 456.37 points.

Still, MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.55% lower, lost 0.81%, and Chinese stocks lost 0.92%.

The Australian rose 0.46% in early trading, while Japan’s fell 0.07%.

Investors are worried about the economic impact of the highly infectious Delta variant. Indonesia, Malaysia, Thailand and Australia are all battling outbreaks and tightening restrictions, and Spain and Portugal announced restrictions for unvaccinated British tourists.

“These are headwinds to risk assets performing well, but if we step back, we are still looking at equity indices that continue to hit all time highs,” said Patrick Leary, chief market strategist and senior trader at Incapital.

Investors are also waiting for the U.S. jobs due out on Friday, the results of which could influence Fed policy.

Economists polled by Reuters are expecting a gain of 690,000 jobs for June, up from 559,000 in May.

On Monday, Richmond Federal Reserve President Thomas Barkin said the U.S. central bank has made “substantial further progress” toward its inflation goal in order to begin tapering asset purchases.

“A good number will speed up the debate about tapering asset purchases soon and raising rates sooner,” Leary said.

Unofficially, the rose 20.24 points, or 0.06%, to 34,303.51, the gained 2.05 points, or 0.05%, to 4,292.66 and the added 28.67 points, or 0.2%, to 14,529.17. ()

The Nasdaq was boosted by Apple Inc (NASDAQ:), while the S&P was helped by Morgan Stanley (NYSE:)’s news late Monday that it would double its dividend.

added 0.9%, after Adidas (OTC:) lifted the German index with news of a share buy back plan.

The U.S. dollar rose to a one-week peak. The , which tracks the greenback versus a basket of six currencies, rose 0.2% to 92.077, with the euro down 0.19% to $1.19.

Sterling was last $1.3849, down 0.24%. The Australian dollar fell 0.71% versus the greenback at $0.751.

Oil prices rose as hopes for a demand recovery persisted despite new outbreaks of the Delta variant.

futures settled up 8 cents, or 0.11%, and settled up 7 cents, or up 0.10%. [O/R]

dropped 1.0% to $1,760.77 an ounce. U.S. fell 1.06% to $1,761.00 an ounce.[GOL/]

Yields for benchmark 10-year U.S. Treasuries were last up less than a basis point at 1.4816%. [US/]

Germany’s 10-year bond yield was up 1 basis point at -0.173%.

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Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

S&P, Nasdaq rise to record closes

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Investing.com - Financial Markets Worldwide

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Stock Markets11 hours ago (Jun 29, 2021 07:41PM ET)

S&P, Nasdaq rise to record closes© Reuters. A street sign for Wall Street is seen outside of the New York Stock Exchange (NYSE) in New York City, New York, U.S., June 28, 2021. REUTERS/Andrew Kelly

By Krystal Hu

(Reuters) – The and the Nasdaq both registered record closing highs on Tuesday, lifted by Apple Inc (NASDAQ:) and other technology stocks after an upbeat consumer confidence report.

The S&P 500, helped by a jump in Morgan Stanley (NYSE:) shares on news of a dividend increase, hit a record high for the fourth straight session. The S&P and the Dow closed little changed after a session marked by lighter than average volume, as the market awaits more economic data.

“I think the market is in a digestion period,” said Tom Martin, senior portfolio manager at Globalt. “We’re waiting for that next piece of information that’s going to give us an idea of how sustainable the recovery is.”

Market participants are closely watching the nonfarm payroll report due on Friday, which could sway the U.S. Federal Reserve’s policy stance which hinges on an equitable recovery of the labor market.

An upbeat consumer confidence report on Tuesday set a positive tone for jobs data. U.S. consumer confidence increased in June to its highest level since the COVID-19 pandemic started more than a year ago, bolstering expectations for strong economic growth in the second quarter.

“If there’s a strong nonfarm payrolls number this month and we start making progress on the unemployment rate, that changes the whole Fed narrative,” said Mike Zigmont, head of trading and research at Harvest Volatility Management in New York.

Three of the 11 major S&P sector indexes rose, with technology and consumer discretionary stocks the top gainers, up 0.7% and 0.23%, respectively.

Morgan Stanley jumped 3.4% after it doubled its dividend to 70 cents per share in the third quarter. JPMorgan Chase & Co (NYSE:), Bank of America Corp (NYSE:) and Goldman Sachs Group (NYSE:) also raised their payouts.

All three major Wall Street indexes are set for their fifth straight quarter of gains, boosted by ultra-loose monetary policy, a rebounding U.S. economy and robust corporate earnings.

With the S&P 500 climbing nearly 14% in the first half of the year, investor focus is expected to shift to the second-quarter earnings season, beginning in July, which could decide the path for the next leg of the equity markets.

The rose 9.02 points, or 0.03%, to 34,292.29. The S&P 500 gained 1.19 points, or 0.03%, to 4,291.8 and the added 27.83 points, or 0.19%, to 14,528.34.

Moderna (NASDAQ:) Inc jumped 5.2% to a record high after the drugmaker’s COVID-19 vaccine showed promise in a lab study against the Delta variant first identified in India, with a modest decrease in response compared with the original strain. The largest percentage gainer on the S&P 500 was Skyworks Solutions (NASDAQ:), which rose 4.5%, as Barclays (LON:) analysts raised their price target, citing it as one of the suppliers to Apple that could benefit from the new iPhone launch. Apple rose more than 1.1%.

Volume on U.S. exchanges was 9.60 billion shares, compared with the 11.1 billion average for the full session over the last 20 trading days.

Declining issues outnumbered advancing ones on the NYSE by a 1.18-to-1 ratio; on Nasdaq, a 1.51-to-1 ratio favored decliners.

The S&P 500 posted 38 new 52-week highs and no new lows; the Nasdaq Composite recorded 93 new highs and 38 new lows.

(Graphic: S&P 500, Nasdaq at record highs; Dow lags, https://fingfx.thomsonreuters.com/gfx/mkt/yzdvxlrekvx/MicrosoftTeams-image%20(2).png)

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Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Wall Street banks hike shareholder payouts after Fed gives the green light

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Wall Street banks hike shareholder payouts after Fed gives the green light© Reuters. FILE PHOTO: A sign is displayed on the Morgan Stanley building in New York U.S., July 16, 2018. REUTERS/Lucas Jackson/File Photo

By David Henry and Niket Nishant

(Reuters) -Morgan Stanley, JPMorgan, Bank of America, Goldman Sachs and Wells Fargo (NYSE:) said on Monday they were hiking their capital payouts after the U.S. Federal Reserve gave them a clean bill of health following their annual “stress tests” last week.

Analysts and investors had expected https://www.reuters.com/business/us-fed-bank-stress-tests-pave-way-stock-buyback-dividend-bonanza-2021-06-22 the country’s largest lenders to start issuing as much as $130 billion in dividends and stock buybacks from next month after the Fed last week ended emergency pandemic-era restrictions on how much capital they could give back to investors.

Morgan Stanley (NYSE:) delivered the biggest surprise to investors, however, saying it would double its dividend to 70 cents a share in the third quarter of 2021. Some analysts had been expecting a boost to about 50 cents.

The Wall Street giant also said it would increase spending on share repurchases. Its shares rose as much as 3.7% in after-market trading following the announcement.

Morgan Stanley CEO James Gorman said in the announcement that the bank could return so much capital because of the excess it has accumulated over several years. The action, he said, “reflects a decision to reset our capital base consistent with the needs we have for our transformed business model.”

Bank of America Corp (NYSE:) said it will hike its dividend by 17% to 21 cents a share beginning in the third quarter of 2021, and JPMorgan Chase & Co (NYSE:) said it will go to $1.00 a share from 90 cents for the third quarter.

Goldman Sachs Group (NYSE:) said it planned to increase its common stock dividend to $2 per share from $1.25.

Wells Fargo & Co, which has built up capital more rapidly than rivals due in part to a Fed-imposed cap on its balance sheet, said it plans to repurchase $18 billion of stock over the four quarters beginning in September.

The repurchase target amounts to nearly 10% of its stock market value and is line with expectations from analysts.

Wells Fargo, which for years has been trying to move past a series of costly mis-selling scandals, said it was doubling its quarterly dividend to 20 cents a share, consistent with analyst expectations.

“Since the COVID-19 pandemic began, we have built our financial strength … as well as continuing to remediate our legacy issues,” CEO Charlie Scharf said in a statement.

“We will continue to do so as we return a significant amount of capital to our shareholders,” Scharf added.

CITIGROUP

Citigroup (NYSE:), meanwhile, confirmed analysts’ estimates that a key part of its required capital ratios had increased under the stress test results to 3.0% from 2.5%.

A hike of that size will limit Citigroup’s share buybacks, versus its peers, a report from analyst Vivek Juneja of JPMorgan shows. Juneja expects Citigroup will have the lowest capital return of big banks he covers.

Citigroup CEO Jane Fraser said the bank will continue its “planned capital actions, including common dividends of at least $0.51 per share” and buying back shares in the market.

Bank of America’s shares were flat in after hours trading, Goldman Sachs’ shares were up 0.6%, while Citigroup’s and JPMorgan’s were down 0.9% and 0.3% respectively.

The Fed said on Thursday it was ending its remaining curbs on dividend payouts after finding the country’s largest banks would remain well capitalized in its latest stress tests.

The central bank said the test found 23 of the largest firms would suffer a combined $474 billion in losses under a hypothetical severe downturn, but would still have more than twice as much capital required under Fed rules.

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