Connect with us

Business

Most of Wall Street rises after a pivotal inflation report comes up cool

Most of Wall Street rises after a pivotal inflation report comes up cool

Published

on

Most of Wall Street rises after a pivotal inflation report comes up cool

 Most U.S. stocks are rising Thursday after the latest update on inflation bolstered Wall Street’s belief that relief on interest rates may come as soon as September.

Four out of every five stocks in the S&P 500 index were climbing, though pullbacks for Microsoft and several other big, influential companies that have soared recently masked that underlying strength. The benchmark index was down 0.3% in morning trading from its all-time high set a day before.

The dips for Big Tech stocks also dragged the Nasdaq composite down 0.8% from its own record, while the Dow Jones Industrial Average was 15 points higher, or less than 0.1%, as of 10:35 a.m. Eastern time.

But the direction was decidedly up for the majority of stocks on Wall Street, particularly homebuilders, real-estate owners and other stocks that tend to benefit the most from easier interest rates. BXP, the company that owns Boston’s Prudential Center and other high-profile office developments across the country, climbed 5.1% for one of the market’s biggest gains.

Advertisement

Smaller companies that have been lagging behind the market’s behemoths for a while were also strong, and the Russell 2000 index of smaller stocks leaped 3.1% to lead the market decisively.

Wall Street wants lower interest rates because that can release pressure built up on the economy due to how expensive it’s become to borrow money to buy houses, cars or anything on credit cards. Fed officials, though, have been saying they want to see “more good data” on inflation before making a move. They’ve kept rates high to intentionally put downward pressure on the economy, hoping to fully snuff out the worst inflation in generations.

Wall Street sees Thursday’s report, which showed milder increases than expected for prices of gasoline, cars and other things U.S. consumers bought during June, as providing just that.

“One word: pivotal,” said Lindsay Rosner, head of multi-sector investing within Goldman Sachs Asset Management. “With three inflation prints between this morning and September’s Fed meeting, today’s print was crucial in helping the Fed gain confidence inflation is still moving in the right direction.”

Following the report’s release, Treasury yields tumbled immediately. The yield on the 10-year Treasury dropped to 4.18% from 4.28% late Wednesday and from 4.70% in April. That’s a major move for the bond market and provides a big lift for stock prices.

Advertisement

The two-year Treasury yield, which more closely tracks expectations for Fed action, eased to 4.50% from 4.62% late Wednesday.

The lower yields helped the majority of the U.S. stock market to rise. Real-estate owners and utilities led the way because falling bond yields make their relatively high dividends look more attractive to investors seeking income.

Real-estate investment trusts in the S&P 500 jumped 2.3% for the biggest gain by far among the 11 sectors that make up the index. Utility stocks were the second-best in the index with a gain of 1.5%.

Homebuilders were also strong on hopes that lower mortgage rates will juice the industry. PulteGroup rose 5.9% and D.R. Horton climbed 5.6% for some of the biggest gains in the S&P 500.

Besides hopes for coming cuts to interest rates, expectations for strong profit growth amid a resilient but slowing economy have also helped to push the U.S. stock market to records. Analysts expect S&P 500 companies to deliver their best growth in more than two years this upcoming reporting season, but it’s getting off to a mixed start.

Advertisement

Delta Air Lines lost 6.2% after reporting slightly weaker revenue and profit for the spring than analysts expected. The airline said demand is strong for peak summer travel, but it also gave a profit forecast for the current quarter that fell short of Wall Street’s estimates.

PepsiCo fell 0.6% despite topping profit forecasts for the spring. Its revenue for the latest quarter came in a bit shy of analysts’ expectations, and the food giant said that an important underlying measure of revenue will likely come in at the bottom of its earlier forecasted range for the full year.

On the winning end was WD-40, which rose 2.8% after reporting stronger profit and revenue than analysts expected.

In stock markets abroad, Japan’s Nikkei 225 rose 0.9% to set another all-time high.

Indexes were also strong across much of the rest of Asia and Europe. 

Advertisement

Business

Various schemes launched to boost agri, livestock sectors: minister

Various schemes launched to boost agri, livestock sectors: minister

Published

on

By

Various schemes launched to boost agri, livestock sectors: minister

 Punjab Minister for Agriculture and Livestock Syed Ashiq Hussain Kirmani said the livestock sector is a top priority of the government, and practical steps are being taken for its development.

He expressed these views during his visit to the sub-campus of the University of Veterinary and Animal Sciences and the Buffalo Research Institute in Pattoki on Saturday.

The provincial minister inspected various departments of the institute, including the calves rearing centre, dairy section, and research laboratories.

The minister on this occasion said that institutions like the University of Veterinary and Animal Sciences are providing such education and training to our youth that they can play their role in the livestock sector in their practical life.

Advertisement

He said under the leadership of Punjab Chief Minister Maryam Nawaz, the government’s focus is on small farmers with land holdings ranging from one to twelve and a half acres, for whom various schemes are being launched in the agriculture and livestock sectors.

He said according to the vision of the CM, the Livestock Department is paying full attention to increasing milk and meat production and implementing body fattening programmes for livestock.

The minister said that for the first time in Punjab, a scheme called the Chief Minister Punjab Livestock Card has been introduced for small farmers, benefiting 80,000 farmers over two years.

Four lakh animals will be prepared for export through feed and fattening. Kirmani said that the Nili-Ravi breed is the pride of Punjab. The Livestock Department is striving to improve the Nili-Ravi breed of buffaloes in Punjab.

Advertisement
Continue Reading

Business

Govt buys per unit electricity for Rs750 from specific IPP: Ejaz

Govt buys per unit electricity for Rs750 from specific IPP: Ejaz

Published

on

By

Govt buys per unit electricity for Rs750 from specific IPP: Ejaz

Former Caretaker Federal Minister for Commerce Gohar Ejaz has said the government has been purchasing electricity from a specific power plant at the rate of Rs750 per unit under IPPs contract deal.

“We have been paying Rs60 per unit due to these corrupt contracts. Out of total IPPs, 52 per cent belongs to the government while 28 per cent is being run by the private people of Pakistan,” Gohar disclosed.

“I have raised my voice against 40 families  and shared the data to save the country from them. It is surprising the government is paying Rs150 billion to a specific power plant which is generating merely less than 15 per cent of its capacity,” he said.

“Most IPPs are running at less than 20 per cent of their capacity while payments of Rs1.95 trillion have been made to these IPPs which have been confirmed.

Advertisement

The former commerce minister reveled the government had been paying Rs370 billion to three IPPs which were generating less than 15 per cent of their capacity.

He says the solution to the problem is to pay to the IPPs ‘no capacity charges.

Read only: Gohar Ejaz urges Leghari to make IPP payment record public

“The IPPs must be paid for what they generate,” he highlighted.

Advertisement
Continue Reading

Business

Nigeria’s Dangote refinery in talks with Libya to secure oil

Nigeria’s Dangote refinery in talks with Libya to secure oil

Published

on

By

Nigeria's Dangote refinery in talks with Libya to secure oil

Nigeria’s Dangote refinery is in talks with Libya to secure crude for the 650,000 barrels per day (bpd) plant and will also seek Angolan oil, a senior executive said, as it seeks to overcome problems with domestic supplies.

The $20 billion refinery, built by Africa’s richest man Aliko Dangote on the outskirts of Lagos is Africa’s largest, and is designed to end Nigeria’s dependence on imported fuels because of insufficient refining capacity.

Since Dangote began operations in January, it has been unable to get adequate crude supplies in Nigeria, which, although Africa’s biggest oil producer, is struggling with theft, pipeline vandalism and low investment.

Dangote has resorted to importing crude from as far as Brazil and the United States.

Advertisement

“We are talking to Libya about importing crude,” Dangote refinery senior executive Devakumar Edwin told Reuters late on Saturday. “We will talk to Angola as well and some other countries in Africa.”

He declined to give detail about the talks, but said international traders and oil companies were among the biggest buyers of Dangote’s gasoil, much of which was being exported.

“The biggest offtakers are the two big traders Trafigura and Vitol and BP and, to some extent, even TotalEnergies. But all of them are saying they are taking it to offshore,” Edwin said.

Traders and shipping data have shown that Dangote is increasing gasoil exports to West Africa, taking market share from European refiners.

Edwin said Dangote’s oil trading arm was operational, with staff in London and Lagos, to help manage supplies and sell products. Reuters first reported the planned trading arm in March.

Nigeria’s upstream regulator has clashed with Dangote, saying the sulphur content in its gasoil was above the required limits of 200 parts per million (ppm).

Advertisement

Aliko Dangote has denied that, saying the sulphur level was higher when production started, but had fallen to 88 ppm and would sink to 10 ppm in early August as output rises.

Continue Reading

Trending

Copyright © GLOBAL TIMES PAKISTAN