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Tech and financial stocks rally on Thursday amid trade optimism and rising Treasury yields

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To cap off a week when economic data painted a mixed picture of the US economy, a widely expected job market report came in weaker than expected.

Government data on the non-farm payroll showed that the world’s largest economy created 130,000 jobs in August, well below aBriefing.com consensus of expecting 171,000 jobs to be added. The previous reading of 164,000 jobs added in July has been revised down to 159,000.

The disappointing numbers come after US manufacturing data earlier in the week signaled the sector was in contraction, but other numbers pointed to a stronger-than-expected private sector job market, better factory orders than expected and the strength of the service sector.

A silver lining for the jobs report and manufacturing data could be a stronger argument for the Fed to cut interest rates, but stronger data supports the opposite argument. After government employment data this morning, the futures market’s chances of a Fed rate cut haven’t changed much. The futures market showed a 93.5% chance of a 25 basis point decline later in the month, compared to a 91.2% chance before the jobs report. The rest of the probability was that the Fed would hold rates.

Stock index futures reduced their gains after the jobs data, but investors seemed to retain some of their optimism after the news that China decided to stimulate its economy by reducing the amount of liquidity it banks must keep as reserves. The Chinese central bank’s decision comes amid slowing economic growth in the world’s second-largest economy as the trade war with the United States drags on.

Later today, Fed Chairman Jerome Powell is expected to speak and investors will likely be tuned in for any comments on monetary policy.

Business news, data helps allay fear

Sometimes, before some much anticipated data, the market can enter a lull where traders and investors are unwilling to take particularly large positions ahead of the numbers. This was not the case on Thursday, as trade news and economic data pushed the market up sharply.

The market has had a boost with the news that the United States and China have agreed to high-level trade talks next month. The world’s two largest economies will also hold preparatory consultations in the middle of this month.

Additionally, July payroll data from ADP and Moody’s Analytics showed private companies created 195,000 jobs, well above the 165,000 expected in a Briefing.com consensus. Strong private sector data helped boost the market ahead of today’s job numbers, as ADP numbers are seen as a less comprehensive precursor to government numbers, even though they are not. always in sync, as evidenced by today’s lower-than-expected reading from the Ministry of Labor.

Other economic data Thursday also encouraged the market. A report on US factory orders on Thursday showed a 1.4% increase in July, ahead of a consensus of 1% on Briefing.com. And the Institute for Supply Management’s non-manufacturing index showed that the service sector in August posted a 56.4% better-than-expected rate, reflecting larger-than-expected expansion in the sector.

Switch to activated risk

The bullish data helped allay some concerns about a recent U.S. recession as the 10-year Treasury yield fell below that of the 2-year Treasury, an indicator that preceded recessions in the pass. But on Thursday, that part of the yield curve was more normal – with a slight positive slope – and, encouragingly, the 30-year Treasury yield was above 2%. Movements in the yield curve seem to indicate less fear in the market about the economy.

The optimism that did so much to boost stocks on Thursday was part of a heightened investor appetite for riskier assets. This meant that they felt less need for the relative safety of US government debt, and as they sold Treasuries, they pushed up yields.

As investors and traders sold their T-bills, they also dumped gold, another traditional safe haven with T-bills (see Figure 1 below). The risky mood amid the news of the trade talks and strong economic data helped push gold futures down 2% as this also caused the main fear indicator to drop by more than 6%. of Wall Street, the Cboe Volatility Index (VIX). The VIX enters below 4 pm Friday morning for the first time in two weeks.

In industry news, information technology stocks led the way, rising over 2.1%. Some tech companies derive a substantial portion of their revenue from China and maintain supply chains in the Asian country, so their stock prices often rise and fall with trade-related news. performance, up more than 3% even after having jumped nearly 2.8% the day before.

Along with the outperformance of tech companies, the tech-heavy Nasdaq Composite (COMP) was the best performer of the three major US indices, rising 1.75% while the Dow Jones Industrial Average ($ DJI) gained more 1.4% and the S&P 500 Index (SPX) added 1.3%.

The excitement has once again pushed the SPX towards the 3000 mark, which makes us think that maybe now is the time for a word of caution to offset some of the dizzying sensations that days like Thursday can bring.

On the one hand, the planned trade negotiations mark an improvement on the stalemate we have recently experienced. On the other hand, it’s just talking. The stock market’s benchmark may struggle to break through resistance around this psychologically important 3,000 mark without concrete progress outside of trading, leaving this figure at the top of a 2,750-3,000 range for the benchmark. After all, before the October talks were announced, the most recent concrete step the two sides took was to impose additional tariffs on each other’s goods.

Looking towards next week, investors should see reports on producer and consumer inflation, retail sales and a consumer confidence index. (See more below.)

LESS BRILLIANT. Gold futures prices (/ GC) took him on the chin on Thursday as strong US economic data and encouraging news on the US-China trade front dulled the metal’s appeal as a safe haven . Still, it’s been a fairly summery season for the yellow metal, which has gone from less than $ 1,300 an ounce on Remembrance Day to over $ 1,550 on Labor Day. Data source: CME Group. Chart source: TD Ameritrade’s thinkorswim® platform. For illustrative purposes only. Past performance is no guarantee of future results.

Inflationary pressure: Ahead of today’s jobs report, the Fed earlier this week released an anecdotal snapshot of the state of the labor market in its beige book. The bottom line was that employment was growing at a modest pace overall and that the tightness in the labor market continued to hold back the growth of business activity. Amid the tension, wage growth remained modest to moderate as there was strong upward pressure on the wages of entry-level, low-skilled, tech, construction and construction workers. certain professional services. Companies were also using other efforts such as improved benefits, flexible working arrangements and signing bonuses to attract and retain workers. Amidst this inflationary pressure, it might be interesting to see what the producer and consumer inflation reports have to show us next week. The strength of the labor market also provides a counterpoint to recent rhetoric about the recession and the market’s desire for the Fed to continue lowering interest rates.

Hindsight…: The American consumer has been an island of strength in seas of concern over global economic growth amid the trade war between the United States and China. Retail sales in the United States in July were better than expected. In the government’s latest GDP report, growth in consumer spending was revised to 4.7% from 4.3%. A recent index measuring small business optimism has risen in part on strong consumer spending, as consumer confidence has improved in recent months. And despite some lingering issues in the brick and mortar retail industry, Walmart Inc (NYSE: WMT), Amazon.com, Inc. (NASDAQ: AMZN), and Target company (NYSE: TGT) have performed well in their last quarters, bolstering the resilience of the U.S. consumer despite global economic turmoil. We’ll know more when the retail sales figures for August are released next Thursday.

… against a crystal ball: But the data on retail sales is retrospective. Consumer sentiment, however, may offer clues to the current state of consumer spending, perhaps with a look to the future. So it’s worth watching the University of Michigan’s preliminary reading on September Consumer Sentiment, which is expected to be released next Friday. Amid the price negativity, August’s headline count fell to 89.8 from the previous August reading of 92.1. It remains to be seen whether this negative feeling will increase or decrease, or stay the same. Either way, it might be interesting to see how consumers feel as the trade war progresses.

Information from ADT is not intended to be investment advice or construed as a recommendation or approval of any particular investment or investment strategy, and is for illustration purposes only. Make sure you understand all of the risks associated with each strategy, including commission fees, before attempting to place a trade.

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© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.


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US STOCKS-Wall Street rally ends as financial stocks slide

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* Investors await Fed Chairman’s speech on Friday

* Facebook, Netflix share slide

* Home Depot, Medtronic increase after quarterly reports

* Falling indices: Dow 0.66%, S&P 0.79%, Nasdaq 0.68% (updates at market close)

By April Joyner

NEW YORK, Aug. 20 (Reuters) – Financial stocks drove US stocks lower on Tuesday to end a three-day rally as investors awaited comments from Federal Reserve Chairman Jerome Powell at the end of the week.

The S&P 500 financial index fell 1.4% and the group weighed the most on the benchmark among its major sectors, all of which posted losses.

Prior to Tuesday’s session, US stocks had recouped most of their losses after a massive selloff last Wednesday, triggered by a brief inversion of the yield curve between 2-year and 10-year Treasuries, widely seen as a harbinger of a recession. . Reports of stimulus efforts in China and Germany, as well as the subsequent steepening of the yield curve, helped allay recession fears.

The S&P 500 is now 4.1% off its July closing high after falling as much as 6.2% below that level.

Investors said they were eagerly awaiting the Fed’s Friday speech by Powell at the Jackson Hole central bankers conference for more clues on the development of monetary policy and interest rates. Clues to the U.S. central bank’s plans can also be found in the minutes of the July Fed policy meeting, which will be released on Wednesday.

“Everyone’s waiting for Jackson Hole,” said Jim Awad, senior managing director of Clearstead Advisors in New York City. “It’s a wait and see attitude until Friday.”

The Fed’s actions gained attention as US economic growth moderated and the US-China trade dispute weighed on business confidence. On Tuesday, President Donald Trump said his administration was considering lowering taxes on wages and capital gains.

Some investors have said such efforts, along with Trump’s calls for the Fed to cut rates, could signal faltering confidence in the U.S. economy.

“This adds to the perception that there is concern,” said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.

The Dow Jones Industrial Average lost 173.35 points, or 0.66%, to 25,962.44, the S&P 500 lost 23.14 points, or 0.79%, to 2,900.51 and the Nasdaq Composite lost 54.25 points, or 0.68%, to 7,948.56.

Shares of Netflix Inc fell 3.4% after Walt Disney Co announced the launch of its streaming service in Canada and the Netherlands in November.

Shares of Facebook Inc fell 1.3% as the company said it was fine-tuning its policies to allow users to see and control the data that other websites and apps share with the social network in order to ” improve targeted advertising. A Bloomberg report that Facebook’s digital currency Libra is facing a European Union antitrust investigation has also weighed on stocks.

Shares of Home Depot Inc climbed 4.4% to lead as a percentage of gains on the S&P 500 after the home improvement retailer’s quarterly profits exceeded estimates. Shares of rival Lowe’s Companies Inc also rose, up 3.0%.

Shares of Medtronic Plc rose 2.6%, also among the largest percentage gains in the S&P 500, after the medical device maker raised its adjusted full-year profit forecast.

Falling issues outnumbered advancing ones on the NYSE by a ratio of 1.49 to 1; on the Nasdaq, a ratio of 1.71 to 1 favored the declines.

The S&P 500 posted 30 new 52-week highs and five new lows; the Nasdaq Composite recorded 45 new highs and 80 new lows.

Volume on the U.S. exchanges was 5.75 billion shares, compared to 7.56 billion on average for the full session over the past 20 trading days. (Reporting by April Joyner; Additional reporting by Medha Singh and Amy Caren Daniel in Bengaluru; Editing by Anil D’Silva, Lisa Shumaker and Dan Grebler)


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Provident Financial shares drop nearly 20% after profit warning

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Provident Financial Group PLC Updates

Provident Financial, the London-listed subprime lender, lost a fifth of its market value on Tuesday after it said it planned to report annual pre-tax profit at the lower end of the expectation range.

The home-based lender said the warning reflected tighter underwriting and fewer new account bookings in the last quarter of the year.

Provident said £ 159million was the average consensus of 12 analysts of group profit before tax, amortization of acquisition intangibles and exceptionals. The forecast range was between £ 151m and £ 166m, the company said.

Shares fell 18.1% in London. That leaves the stock on track for its biggest drop since August 2017, according to data from Refinitiv.

Provident underwent a regulatory review last year over its disclosures. Vanquis, a credit card transaction that represents 58% of the group’s revenue, had to reimburse 1.2 million customers. He said he has repaid around £ 160million in cash and balance cuts to over a million of his clients and will complete them all by early 2019.

The group’s Moneybarn auto loan business is under investigation by the Financial Conduct Authority into how it treats distressed borrowers.

“We are working on the conclusion of the case [with the FCA] in the first half of 2019, ”said Malcolm Le May, who took over as CEO in February of last year.

Malcolm Le May Pension Director General

Vanquis Bank generated 76,000 new account bookings in the fourth quarter, 17,000 less than the quarterly figure of the previous year, compared to 366,000 for the year as a whole. This is 71,000 less than the previous year, reflecting the impact of a stricter underwriting and the end of a contract with Argos in early 2018.

For the year, the group recorded a growth of 3.1% in the number of customers to 1.8 million.


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Ameritech Financial Shares FTC Advice on How to Avoid Timeshare Fraud

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ROHNERT PARK, California, August 20, 2018 / PRNewswire / – Picture this: An elderly couple receives a call from a stranger claiming that they have won a free “luxury” vacation. The person on the other line looks professional and seems to know what they are talking about. However, the couple begin to be suspicious when the stranger asks for credit card information. They have even more doubts when the caller cannot spell out details such as what exactly “luxury” and “five stars” mean. While this may sound like a plot taken from a daytime police show, it happens every day across America. Ameritech Financial, a document preparation company that helps student loan borrowers apply for federal repayment plans, supports Federal Trade Commission advice to lodge complaints if consumers meet travel scams. Student loan borrowers could be at a greater disadvantage than the average consumer as they face greater repercussions if they miss their monthly payments, regardless of the financial hardship created by a travel scam.

The FTC has several resources to learn more about travel scams and they offer specific advice from state attorney general offices, consumer departments, justice ministries and more. Timeshare resale scams are a specific problem that vacationers may face. Learn more about this problem in an excellent educational piece which was written by from minnesota attorney general and who is recommended by the FTC. The article offered several tips on how to avoid this scam, such as warning buyers not to “be fooled by fancy websites or names or addresses of reputable businesses” because “a reseller … could be a con artist. at the other end of the world”. They also suggested researching the license information of the alleged reseller to make sure they are operating a legitimate business. Consumers of all ages can be easily fooled by professional scammers, especially in business transactions as complicated as timeshare sales and resales. Ameritech Financial cautions its clients to read all contracts carefully and seek professional advice if they are confused by any of the terms and conditions.

Additionally, the FTC has its own advice for U.S. consumers considering buy a timeshare. Their experts suggest that potential buyers research the full cost of a timeshare, including “mortgage payments … travel costs, annual maintenance fees and taxes, closing costs, brokerage commissions and finance charges. “. Keeping all of these costs in mind will help consumers be fully aware of their investment and their options. Another key point buyers should remember is not to give in to the high pressure sales tactics of timeshare sales reps.

Student loan borrowers should be especially careful and consider all of their financial obligations (like their monthly debt payments) before entering into a timeshare deal. If they do their due diligence (and can chat with a financial expert as well), borrowers have a better chance of maneuvering the timeshare buying process without getting ripped off.

While Ameritech Financial cannot offer specific timeshares advice, it can recommend income-driven repayment plans for borrowers through the Department of Education that can lower their monthly payments for their federal student loans. Reducing their monthly student loan payments could help consumers afford the vacation of their dreams. Ameritech Financial is proud of its experience in assisting borrowers with the application process for such programs.

About Ameritech Financial

Ameritech Financial is a private company located in Rohnert Park, California. Ameritech Financial has already helped thousands of consumers with financial analysis and preparation of student loan documents to apply for federal student loan repayment programs offered by the Department of Education.

Each Ameritech Financial telephone representative has received the Certified Student Loan Professional certification through the International Association of Professional Debt Arbitrators (IAPDA).

Ameritech Financial prides itself on its exceptional customer service.

Ameritech Financial Newsroom

Contact

To learn more about Ameritech Financial, please contact:

Ameritech Financial
5789 State Farm Drive # 265
Rohnert Park, California 94928
1-800-792-8621
[email protected]

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Surat Lavji Daliya Businessman Wins Hearts with Financial Obligations for Girl | Latest India News

Lavjibhai Daliya is a Surat-based real estate agent who bid unsuccessfully to purchase Prime Minister Narendra Modi’s pinstriped suit at an auction in 2015, the proceeds of which were donated to the Clean Ganga Project.

An undeterred Daliya, however, embarked on a larger philanthropic mission: to bring financial stability to the girl.

Under his Badshah Sukanya Smridhi Yojana, the businessman provided parents in his Patel (Patidar) community with more than one daughter with bank bonds that would earn them Rs 2.31 lakh upon maturity after 21 years. Daliya pays the premium in full, and the money accumulated is intended to be used for the girl’s higher education or marriage.

Earlier this week, 1,000 parents received the bonds at a reception. Launched in 2015, 10,000 bonds, intended only for the second or subsequent daughter, were delivered in the first year.

According to Daliya, bonds with a total maturity of Rs 200 crore will be awarded, with Daliya spending 56 crore on premium payments.

Clearly a sidekick of Modi who the prime minister named during a recent visit to the city for the inauguration of a hospital, Daliya said he was only contributing with his strength to a good cause. “Shortly after Narendrabhai, as Gujarat CM launched the Save Girl Child campaign, I organized various events to raise awareness, especially among the Patels. But at the end of the decade-long campaign, I realized that it was difficult to bring about such social change without providing financial support, ”Daliya told HT.

Lavjibhai Daliya is winning a lot of hearts right now with his initiative. (Photo HT)

Daliya said he was driven by his poor background to help those in need. He came to Surat from Bhavnagar in Saurashtra at the age of 13 to work as a diamond polisher. Gradually, he became the owner of diamond factories, electric looms and also one of the largest real estate companies in Gujarat.

“I have seen that families feel more devastated when their second or third child is also a girl. This situation, especially in poor families, unconsciously leads to discrimination. That’s why the link is only for the second daughter and the following ones, ”he said.

The situation, he said, was dire in his community of Patidar suffering from a biased sex ratio. The female-to-male ratio for Patidars is estimated at just 800 per 1,000 men against the state average of 919 per 1,000, forcing many Patidars to seek wives outside Gujarat.

Some in his business circle whisper that Daliya’s motives are not entirely noble. “He’s watching the publicity and Modi’s attention,” one said on condition of anonymity.

But the businessman, affectionately known as Badshah, is winning a lot of hearts with his initiative right now. He leads a team of volunteers who stay in touch with doctors and advise parents against female feticide.

“I see a certain difference in the attitude of parents towards girls, especially among young parents. They seem to understand the situation well. And with little help from the company, they now seem to welcome the little girl wholeheartedly, ”he said.


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