[ad_1]
Wall Street stocks edged higher Friday but were poised for weekly losses having sold off after the Federal Reserve signaled that interest rates will stay higher for longer.
The S&P 500 (^GSPC) gained about 0.5% in afternoon trading, while the Dow Jones Industrial Average (^DJI) rose 0.2%. The Nasdaq Composite (^IXIC) was up around 0.9% after all three major gauges closed Thursday with hefty declines.
Markets have turned wary in recent days as they assessed the impact on consumer and business demand from the Fed’s message that it would keep borrowing costs high to quell inflation. The central bank’s chair, Jerome Powell, also did little to bolster hopes the US economy would avoid recession.
Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
But stocks now appear to be finding a footing, with the S&P 500 on track to rise after logging its worst day since March in the previous session. Meanwhile, the yield on the 10-year Treasury steadied after hitting its highest level in over 15 years on Thursday.
In economic news, S&P Global said its flash U.S. Composite PMI index came in at 50.1 in September, slightly down from 50.2 in August, in a sign of stagnating business activity.
Elsewhere in central banks, the Bank of Japan held to its ultra-low interest rates on Friday and maintained its pledge to support the economy, suggesting no shift in its massive stimulus program is coming. The yen dropped against the dollar after the decision.
In individual stocks, shares in Activision Blizzard (ATVI) rose to close in on Microsoft’s (MSFT) offer price, after the UK antitrust regulator said the door is open for the $69 billion acquisition to go ahead.
Also in focus were the strikes that have buffeted the auto sector and Hollywood. The UAW said it would ratchet up walkouts in its intensifying strike against GM (GM), Ford (F), and Jeep parent Stellantis (STLA), with Friday as a deadline. And despite a marathon session of negotiations, the big four studios — Warner Bros. Discovery (WBD), Disney (DIS), Netflix (NFLX), and NBCUniversal — failed to reach a deal with striking writers.
-
Stocks gain but head for losing week
Wall Street gained ground Friday afternoon in a reversal of the last two sessions when sentiment turned sour as the Fed reaffirmed its hawkish stance to keep interest rates elevated for several years. But the slight increases were more than offset by this week’s poor performances.
The S&P 500 (^GSPC) edged higher by about 0.4%, while the Dow Jones Industrial Average (^DJI) increased 0.1% or 40 points.The tech-heavy Nasdaq Composite (^IXIC) gained roughly 0.8%
-
Hollywood studios and striking writers to meet for 3rd day
The latest round of bargaining talks over the Hollywood strike appears to be advancing as negotiators for the Hollywood studios and for the Writers Guild of America are set to meet for a third day.
The renewed negotiations, which kicked off on Wednesday, have sparked hopes of a deal after the parties ceased communication for a month. Karen Bass, the mayor of Los Angeles, said in a statement Thursday that she felt “very encouraged” by the talks. This week’s huddle also carries a sense of urgency and optimism as the CEOs of Disney (DIS), Netflix (NFLX) and Warner Bros. Discovery (WBD) joined the negotiations, as has been widely reported.
Writers have been on strike for more than 140 days, and along with actors who joined the picket line in July, in a separate dispute, production in Hollywood has come to a stand still.
Pay, working conditions, and how workers are included in profit sharing in the streaming era are among the sticking points defining the prolonged dispute. Guarantees and restrictions on the use of artificial intelligence technology have surfaced as another point of disagreement.
-
Activision, Amazon and Alibaba: Stocks trending in morning trading
Here are some of the stocks leading Yahoo Finance’s trending tickers page on Friday morning:
Activision Blizzard (ATVI): Activision’s shares rose by 1% after it was announced that its $69 billion deal with Microsoft looks ever more likely to win approval in the UK.
Amazon (AMZN): Shares in the tech giant were up 1%. Amazon announced on Friday that it will roll out ads on Prime Video in 2024.
Alibaba (9988.HK): Alibaba’s shares surged 5%. It was reported by Bloomberg on Friday that China was considering relaxing limits on foreign ownership of domestically listed companies.
AstraZeneca (AZN): Shares in the pharma group were up 2% after announcing that its breast cancer treatment outperformed chemotherapy in a Phase 3 study.
-
JServices sector output hits a 8-month low
Activity in the US services sector is inching toward contraction.
The S&P Global Flash US Services Business Activity Index dipped to a reading of 50.2 in September according to new data release Friday. That’s an 8-month low and down from 50.5 in August. Economists surveyed by Bloomberg had expected the services sector to rebound to a reading of 50.7 in September.
The composite PMI came in at 50.1, a 7-month low and down from 50.2 in August, driven by declines in the services sector. Meanwhile, the manufacturing index increased to 49.7 from 48.5 in September. Any reading above 50 for these indexes represents expansion in the sector; readings below 50 indicate contraction.
“PMI data for September added to concerns regarding the trajectory of demand conditions in the US economy following interest rate hikes and elevated inflation,” S&P Global Market Intelligence Siân Jones said. “Although the overall Output Index remained above the 50.0 mark, it was only fractionally so, with a broad stagnation in total activity signaled for the second month running. The service sector lost further momentum, with the contraction in new orders gaining speed.”
-
Stocks open mixed as Wall Street heads for losing week
Investors pulled stocks in both directions Friday morning with the major indexes heading for weekly losses as Wall Street grapples with the Fed’s moves to keep rates higher for longer.
The S&P 500 (^GSPC) edged higher by 0.1%, while the Dow Jones Industrial Average (^DJI) decreased 0.1% or 56 points.The tech-heavy Nasdaq Composite (^IXIC) gained about 0.5%.
-
KStocks point higher after Fed-fueled selloff
The major US stock benchmarks moved tentatively higher before the open on Friday, on track for a losing week after logging sharp declines amid hawkish signals from the Federal Reserve.
Dow Jones Industrial Average (^DJI) futures were up 0.12%, or 42 points, while S&P 500 (^GSPC) futures put on 0.27%. Nasdaq 100 futures slid 0.49%.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
[ad_2]
Source link