Stocks Rally As Fed Chairman Speaks - NPR

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Federal Reserve Chairman Jerome Powell speaks during a news conference on May 1 in Washington, D.C. He is testifying before Congress this week about economic challenges. Mark Wilson/Getty Images hide caption

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Stocks rallied Wednesday as Federal Reserve Chairman Jerome Powell testified about challenges the U.S. economy faces, adding to expectations that the central bank will cut interest rates later this month.

The Fed had hinted at such a cut in June.

Since then, "it appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook," Powell said in prepared testimony for the House Financial Services Committee. "Inflation pressures remain muted."

Stock indexes jumped by more than half a percentage point in the opening minutes of trading on the prospects that the Fed will cut rates for the first time since the Great Recession. The Dow Jones Industrial Average was up 150 points.

Powell stressed that the U.S. economy is still growing, albeit at a slower pace, as a record-long expansion begins its 11th year. But he cautioned that business investment has slowed, possibly as a response to ongoing trade tensions and a slowdown in the global economy.

Last week, the Labor Department reported stronger-than-expected job growth in June. But while unemployment remains at near-record lows, job growth has slowed since last year.

The Fed chairman also highlighted longer-term challenges, including high and rising federal debt and relatively low labor-force participation among Americans in their prime working years.

President Trump has repeatedly argued that the U.S. economy would be growing faster if the Fed lowered interest rates.

"If we had a Fed that would lower interest rates, we'd be like a rocket ship," he told reporters last week. "But we don't have a Fed that knows what they're doing."

Powell has stressed the importance for the Fed of maintaining its independence from political pressure.

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https://www.npr.org/2019/07/10/740219700/fed-chairman-powell-hints-at-interest-rate-rate-cut-stocks-rally

2019-07-10 14:18:00Z
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Dow Jones Industrial Average Jumps After Jerome Powell Testimony Released - Barron's

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The Dow Jones Industrial Average has pre-open losses and has gained more than 100 points following the release of the text of Fed Chair Jerome Powell’s prepared comments.

The Dow has advanced 111.72 points, or 0.4%, to 26,895.21, while the S&P 500 has risen 0.5% to 2993.75, and the Nasdaq Composite has gained 0.7% to 8199.59.

In the prepared text, Powell notes that investment has slowed because of trade fears, that economic growth may have slowed, and that uncertainties that have emerged since the May meeting have made the economic outlook more uncertain. “Apparent progress on trade turned to greater uncertainty, and our contacts in business and agriculture report heightened concerns over trade developments,” the text says. “Growth indicators from around the world have disappointed on net, raising concerns that weakness in the global economy will continue to affect the U.S. economy.”

To outside observers, this looks like preparation for at least one rate cut in July, and more to follow.

“Looks like we are going to get the ‘Dove’ Scenario,” writes NatAlliance Securities’ Andrew Brenner.

“Powell’s prepared testimony struck a decidedly dovish cord with ‘uncertainties’ over trade and global growth SINCE the June FOMC meeting characterized as having dimmed the outlook,” writes BMO’s Ian Lyngen.”

And the market apparently agrees.

Markets Now is a quick take on what’s happening with the Dow Jones Industrial Average and other major market indexes. Don’t forget to check out the rest of Barron’s markets coverage.

Write to Ben Levisohn at Ben.Levisohn@barrons.com

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https://www.barrons.com/articles/dow-jones-industrial-average-erases-losses-after-jerome-powell-testimony-released-51562762982

2019-07-10 13:35:00Z
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Powell speaks; UK pound under pressure; Markets wait - CNN

Investors will scrutinize his remarks for evidence that the Fed will cut rates when it meets later this month, and if so, by how much. A strong jobs report for June has weakened the case for a big move.

Lawmakers may also press Powell on the Fed's independence in light of repeated criticism from President Donald Trump.

Trump has recently said the central bank was acting like a "stubborn child" for refusing to pursue easy money policies and tweeted that the Fed "doesn't know what it is doing."

Powell has pushed back, defending the institution and its insulation from "short-term political interests."

The central banker will appear before the House Financial Services Committee at 10 a.m. ET. The Fed also releases minutes from its June meeting at 2 p.m. ET.

2. Pound under pressure: The pound is hovering near a two-year low against the US dollar as the race to replace Prime Minister Theresa May produces fresh anxiety about Brexit.

Boris Johnson, the frontrunner to succeed May, has warned that he could take the United Kingdom out of the European Union on October 31 without a deal that protects trade.

Analysts at Bank of America Merrill Lynch said in a note Wednesday that the odds of leaving without a deal have shot up — though it still isn't their base expectation.

"We think persistent uncertainty is the most appropriate forecast," they said.

Britain's economy grew 0.3% in May, according to data released Wednesday. That eases the pain of a 0.4% decline in April, but does little to change the picture of a weak economy overall and possible negative growth in the second quarter.

Want more markets? Watch CNN's "Markets Now" digital live show Wednesday at 12:45 p.m. ET.

3. Markets in wait: Markets lack direction ahead of Powell's remarks.

US stock futures point lower. The Dow is set to fall 40 points, or 0.2%. The Nasdaq and S&P 500 are set for similar losses.

European markets opened mixed. Britain's FTSE 100 rose 0.1%, while France's CAC 40 and Germany's DAX slipped.

Hong Kong's Hang Seng rose 0.3%, but the Shanghai Composite and Japan's Nikkei shed 0.2%.

The Dow Jones industrial average closed down 0.1% on Tuesday. The S&P 500 increased 0.1%, and the Nasdaq was rose 0.5%.

Before the Bell newsletter: Key market news. In your inbox. Subscribe now!

4. Coming this week:
Wednesday — US oil inventories; Fed minutes; Bed Bath & Beyond (BBBY) earnings; Powell testifies in the House
Thursday — US inflation rate; China balance of trade; Delta (DAL) earnings; Powell testifies in the Senate
Friday — US producer prices

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https://www.cnn.com/2019/07/10/investing/premarket-stocks-trading/index.html

2019-07-10 11:18:00Z
52780328813959

Dow futures slightly lower ahead of Fed Chair Powell's testimony - CNBC

U.S. stock index futures were slightly lower Wednesday morning, as market participants eagerly anticipated comments from the world's most powerful central banker.

At around 05:30 a.m. ET, Dow futures slipped 40 points, indicating a negative open of more than 41 points. Futures on the S&P and Nasdaq were both seen slightly lower.

Market focus is largely attuned to the testimony of Federal Reserve Chairman Jerome Powell, with investors anxious to learn whether he will confirm or confound expectations for U.S. policy easing this month.

Over the next two days, Powell is expected to talk about slowing economic activity and increased risks — showing that the Fed is ready to cut interest rates as needed.

However, Powell is also likely to keep the markets — and the White House — guessing about how soon and how deep the Fed intends to trim rates, when it meets at the end of July. The prevailing view, priced into the futures market, is for a 100% chance of a quarter point rate cut July 31.

Overnight, Atlanta Fed President Raphael Bostic said the U.S. central bank was debating the risks and benefits of letting the world's largest economy run "a little hotter."

On the data front, wholesale trade figures for May will be released at around 10:00 a.m. ET.

In corporate news, AngioDynamics and MSC Industrial Direct are both set to report their latest quarterly earnings before the opening bell.

AAR, Bed Bath & Beyond and PriceSmart are scheduled to release their corporate results after market close.

— CNBC's Patti Domm contributed to this report.

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https://www.cnbc.com/2019/07/10/stock-market-fed-chair-powells-testimony-in-focus-on-wall-street.html

2019-07-10 07:01:04Z
52780328813959

Dow futures slightly lower ahead of Fed Chair Powell's testimony - CNBC

U.S. stock index futures were slightly lower Wednesday morning, as market participants eagerly anticipated comments from the world's most powerful central banker.

At around 03:35 a.m. ET, Dow futures slipped 63 points, indicating a negative open of more than 64 points. Futures on the S&P and Nasdaq were both seen slightly lower.

Market focus is largely attuned to the testimony of Federal Reserve Chairman Jerome Powell, with investors anxious to learn whether he will confirm or confound expectations for U.S. policy easing this month.

Over the next two days, Powell is expected to talk about slowing economic activity and increased risks — showing that the Fed is ready to cut interest rates as needed.

However, Powell is also likely to keep the markets — and the White House — guessing about how soon and how deep the Fed intends to trim rates, when it meets at the end of July. The prevailing view, priced into the futures market, is for a 100% chance of a quarter point rate cut July 31.

Overnight, Atlanta Fed President Raphael Bostic said the U.S. central bank was debating the risks and benefits of letting the world's largest economy run "a little hotter."

On the data front, wholesale trade figures for May will be released at around 10:00 a.m. ET.

In corporate news, AngioDynamics and MSC Industrial Direct are both set to report their latest quarterly earnings before the opening bell.

AAR, Bed Bath & Beyond and PriceSmart are scheduled to release their corporate results after market close.

— CNBC's Patti Domm contributed to this report.

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https://www.cnbc.com/2019/07/10/stock-market-fed-chair-powells-testimony-in-focus-on-wall-street.html

2019-07-10 06:51:57Z
52780328813959

Dow futures slightly lower ahead of Fed Chair Powell's testimony - CNBC

U.S. stock index futures were slightly lower Wednesday morning, as market participants eagerly anticipated comments from the world's most powerful central banker.

At around 03:35 a.m. ET, Dow futures slipped 63 points, indicating a negative open of more than 64 points. Futures on the S&P and Nasdaq were both seen slightly lower.

Market focus is largely attuned to the testimony of Federal Reserve Chairman Jerome Powell, with investors anxious to learn whether he will confirm or confound expectations for U.S. policy easing this month.

Over the next two days, Powell is expected to talk about slowing economic activity and increased risks — showing that the Fed is ready to cut interest rates as needed.

However, Powell is also likely to keep the markets — and the White House — guessing about how soon and how deep the Fed intends to trim rates, when it meets at the end of July. The prevailing view, priced into the futures market, is for a 100% chance of a quarter point rate cut July 31.

Overnight, Atlanta Fed President Raphael Bostic said the U.S. central bank was debating the risks and benefits of letting the world's largest economy run "a little hotter."

On the data front, wholesale trade figures for May will be released at around 10:00 a.m. ET.

In corporate news, AngioDynamics and MSC Industrial Direct are both set to report their latest quarterly earnings before the opening bell.

AAR, Bed Bath & Beyond and PriceSmart are scheduled to release their corporate results after market close.

— CNBC's Patti Domm contributed to this report.

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https://www.cnbc.com/2019/07/10/stock-market-fed-chair-powells-testimony-in-focus-on-wall-street.html

2019-07-10 06:36:46Z
52780328813959

Asia shares count on Powell to stay accommodative - Investing.com

By Wayne Cole

SYDNEY (Reuters) - Asian shares pulled ahead on Wednesday while rising Treasury yields lifted the dollar as investors waited anxiously to hear if the world's most powerful central banker would confirm or confound expectations for U.S. easing this month.

MSCI's broadest index of Asia-Pacific shares outside Japan () advanced 0.4%, after three sessions of losses.

South Korea () edged up 0.4%, but Japan's Nikkei () lagged with a loss of 0.1%. E-Mini futures for the S&P 500 () were flat, while EUROSTOXX () and FTSE () futures pointed to small opening gains in Europe.

Chinese blue chips () barely budged as data showed inflation remained stubbornly subdued despite a spike in pork prices.

A worrying lack of inflation globally is one reason investors are counting on Federal Reserve Chair Jerome Powell to sound suitably dovish when testifying to Congress on Wednesday.

Futures are still fully priced for a 25-basis-point cut at the Fed's July 30-31 meeting, but have abandoned wagers on a half-point move. They had implied a 25% probability of an aggressive cut before Friday's upbeat jobs report.

"We still think the odds favor a 25 bps 'insurance' cut," said Kevin Cummins, a senior U.S. economist at NatWest Markets.

"The Fed's consideration of rate cuts is not only about growth but also about inflation, which remains well below target, and inflation expectations, which were breaking to the downside before the Fed signaled the likelihood of cuts."

Overnight, Atlanta Fed bank president Raphael Bostic let nothing out of the bag by saying the central bank was debating the risks and benefits of letting the U.S. economy run "a little hotter."

Lurking in the background, U.S. and Chinese trade officials held "constructive" talks on trade by phone on Tuesday, White House economic adviser Larry Kudlow said.

Wall Street had been duly circumspect on Tuesday, with the Dow () ending down 0.08%, while the S&P 500 () added 0.12% and the Nasdaq () 0.54%.

A LITTLE MORE YIELD

The cooling in U.S. rate fever has seen bonds give back just a little of their huge rally, with yields on two-year Treasuries rising to 1.917% from the recent trough of 1.696%.

That in turn has helped the dollar bounce on a basket of currencies to 97.500 () from a June low of 95.843.

The dollar also firmed to 108.90 yen , while the euro faded to $1.1206 () having been as high as $1.1412 just a couple of weeks ago.

The Mexican peso was nursing a few bruises after sliding on Tuesday when the country's moderate Finance Minister Carlos Urzua suddenly resigned, citing "extremism" in economic policy.

The Canadian dollar was on the defensive ahead of a rate meeting by the Bank of Canada in case policymakers tried to slow the currency's recent rally.

The dollar's gains took the shine off gold, which eased 0.3% to $1,393.68 per ounce .

Oil prices were supported by Middle East tensions and news that U.S. stockpiles fell for a fourth week in a row, easing concerns about oversupply.

Brent crude () futures rose 64 cents to $64.80, while U.S. crude () gained 82 cents to $58.65 a barrel.

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https://www.investing.com/news/stock-market-news/asia-cautious-as-everything-rides-on-dovish-powell-1919213

2019-07-10 05:50:00Z
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