Today: March 04, 2024
Today: March 04, 2024

Stocks fall, yields inch higher; focus on upcoming US inflation data, earnings

Share This
Stocks fall, yields inch higher; focus on upcoming US inflation data, earnings
Caroline Valetkevitch
January 08, 2024

By Caroline Valetkevitch

NEW YORK (Reuters) - Global stock indexes fell and Treasury yields edged higher on Tuesday, with investors bracing for key U.S. inflation data this week and the start of fourth-quarter company earnings.

The dollar was mixed, while in cryptocurrencies, bitcoin fell but remained near its strongest level since April 2022 amid anticipation the Securities and Exchange Commission will approve spot bitcoin exchange-traded funds (ETFs).

All eyes will be on the U.S. consumer prices report for December, due on Thursday. It is expected to show headline inflation rose 0.2% in the month and by 3.2% on an annual basis.

Investors are looking for clues on when the Federal Reserve may begin cutting interest rates. Fed funds futures indicate a 64% probability of a March rate cut, down from 70% a week ago, according to the CME Group’s FedWatch Tool.

"We'll be waiting for the inflation numbers and on Friday the earnings season begins with the big banks," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

But he also said there are likely investor jitters following news from Samsung Electronics Co Ltd. Samsung reported a likely 35% drop in fourth-quarter operating profit on Tuesday, much worse than analysts expected as weak consumer demand persisted in many of its businesses even as memory chip prices improved.

Results from some of the biggest American banks on Friday will unofficially kick off the U.S. earnings season.

The Dow Jones Industrial Average fell 259.30 points, or 0.68%, to 37,426.78; the lost 19.48 points, or 0.41%, to 4,744.23; and the lost 56.65 points, or 0.38%, to 14,787.39.

Boeing shares were down 1.3% as the U.S. National Transportation Safety Board said late on Monday it could not yet tell whether a recovered cabin panel that blew off an Alaska Airlines Boeing 737 MAX 9 plane during a flight last week had been properly attached.

The MSCI world equity index, which tracks shares in 49 nations, lost 0.37%, while European stocks were down 0.2%. Earlier, Japan's Nikkei share average hit its highest level since March 1990.

Euro area unemployment data released on Tuesday came in below expectations.

The 10-year benchmark U.S. Treasury yield was up at 4.02%.

The dollar slipped 0.09% against the yen to 144.09. The euro was down 0.1% on the day at $1.0934, while the U.S. dollar index, which tracks the greenback against a basket of currencies of other major trading partners, was up 0.2% at 102.49.

The dollar index hit a five-month low in December, with investors betting the Fed will cut rates sooner rather than later.

In energy, U.S. crude ticked up 1.75% to $72.03 a barrel. Brent crude rose to $77.28 per barrel. Gold gained, with spot gold was up 0.4% at $2,035.19 per ounce.

(Additional reporting by Alun John in London and Scott Murdoch in Sydney. Editing by Sharon Singleton, Andrew Heavens and Jonathan Oatis)


A look at Taurus missiles, the weapon at the heart of a leaked audio and Russian-German tensions

On the day that Russian opposition leader Alexei Navalny was laid to rest in Moscow, Russian state media leaked an audio recording of German military officers discussing the hypothetical use of Taurus long-range missiles in Ukraine

Capital One defeats cardholders' lawsuit over foreign exchange charges

By Jonathan Stempel (Reuters) - A federal judge in Virginia on Monday dismissed a lawsuit accusing Capital One of overcharging credit and debit card customers on transactions made in foreign

Catholic news site Church Militant agrees to pay $500k in defamation case and is expected to close

A far-right, unofficial Catholic media site has agreed to pay $500,000 to a New Hampshire priest who sued for defamation over a 2019 article

Eagles center Jason Kelce retires after 13 NFL seasons and 1 Super Bowl ring

Jason Kelce has retired after 13 seasons with the Philadelphia Eagles

Do AI video-generators dream of San Pedro? Madonna among early adopters of AI's next wave

Making instant videos is the next wave of generative artificial intelligence, much like chatbots and image-generators before it

US FAA says Boeing 737 MAX production audit found compliance issues

(Reuters) - The Federal Aviation Administration said a government 737 MAX production audit into Boeing and supplier Spirit AeroSystems found multiple instances where the companies allegedly failed to


Fed's Bostic: No urgency to cut interest rates given US economy's strength

By Howard Schneider WASHINGTON (Reuters) - The U.S.

Central banks on brink of victory in inflation fight - BIS

By Marc Jones LONDON (Reuters) - Central banks are on the brink of victory in the fight to bring the global surge in inflation back under control, the Bank for International Settlements said on Monday

Managers explore dollar shift to handle faster US stock settlement

By Laura Matthews NEW YORK (Reuters) - Some investment managers are looking to change the currency their funds do business in to the dollar to prevent their foreign exchange transactions from failing

Stock market today: Japan's Nikkei tops 40,000, as investors await China political meeting

Asian stocks are mostly higher ahead of China’s top annual political gathering, while Japan’s benchmark closed above 40,000 for the first time

- Advertisement -
Advertisement: Limited Time Offer