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Kamis, 11 Juli 2019

The Dow components that drove the blue-chip stock index to a 27,000 milestone - MarketWatch

Which company deserves the most credit for the Dow Jones Industrial Average’s run to a milestone at 27,000 since last posting a finish at or above a round-number milestone at 26,000 back on Jan. 17? Visa Inc. V, +0.79%

The credit-card giant has rung up rich gains over the past 17 months, contributing some 390 points to the price-weighted Dow DJIA, +0.85% while Microsoft Corp. MSFT, +0.40% has added about 324 points to the blue-chip gauge, according to Dow Jones Market Data during that period.

Shares of Visa have climbed nearly 50% since mid January of 2018, rising to $180.74 a share from $121.98. As opposed to the S&P 500 index SPX, +0.23% and the market-capitalization weighted Nasdaq Composite Index COMP, -0.08% each dollar move in any one of the Dow’s 30 components equates to a 6.8-point swing in the 123-year-old, price-weighted benchmark. Microsoft shares have jumped by more than 54%, trading at $138.40 from $90.14 a share at the close of trading Jan. 17.

Meanwhile, the biggest drags on the Dow have been industrial giants, with 3M Co. exacting a 564-point toll on the index over the period, and Caterpillar Inc.’s shares dragging its down by 247 points.

Here’s a complete list of the contributors to the Dow’s relatively lengthy jaunt from 26,000 to 27,000, according to Dow Jones Market Data (the list includes 32 constituents accounting for a split up of DowDuPont Inc. and Walgreens replacing General Electric as a component:

Dow component performance since Jan. 17, 2018	Total point contribution (as of midday trade July 11)
Visa Inc. V, +0.79%	390 points
Microsoft Corp. MSFT, +0.40%	324
McDonald’s Corp. MCD, -0.14%	256
Walt Disney Co. DIS, +0.03%	213
American Express Co. AXP, +0.30%	176
Apple Inc. AAPL, -0.73%	164
Nike Inc. NKE, +0.96%	161
Merck & Co. Inc. MRK, -4.53%	154
Procter & Gamble Co. PG, +0.57%	151
Travelers Cos. Inc. TRV, -0.57%	110
Cisco Systems Inc. CSCO, +0.30%	108
Home Depot Inc. HD, +1.57%	74
Walmart Inc. WMT, +0.83%	68
UnitedHealth Group Inc. UNH, +5.54%	63
Pfizer Inc. PFE, -2.43%	47
Verizon Communications Inc. VZ, -0.18%	36
Coca-Cola Co. KO, +0.42%	34
Intel Corp. INTC, +0.81%	27
Boeing Co. BA, +1.92%	7
JPMorgan Chase & Co. JPM, +0.96%	-0.64
United Technologies Corp. UTX, +0.68%	-28
General Electric Co. GE, -0.69%	-30
Dow Inc. DOW, +0.42%	-40
Johnson & Johnson JNJ, -0.79%	-42
Chevron Corp. CVX, -0.01%	-48
Exxon Mobil Corp. XOM, +0.06%	-72
Walgreens Boots Alliance Inc. WBA, +0.09%	-79
DuPont de Nemours Inc. DWDP, +0.00%	-146
International Business Machines Corp. IBM, +0.55%	-194
Caterpillar Inc. CAT, +0.98%	-247
Goldman Sachs Group Inc. GS, +2.59%	-323
3M Co. MMM, +2.00%	-564

All three main U.S. stock gauges rallied on Thursday, aided partly by stock-supportive central-bank policy, with Federal Reserve Chairman Jerome Powell in congressional testimony setting the stage for an aggressive round of reductions to benchmark federal-funds rates at a range of 2.25%-2.50%. On Thursday, the S&P 500 SPX, +0.23% closed at a record while the Nasdaq Composite Index COMP, -0.08% finished within range of its own all-time high.

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https://www.marketwatch.com/story/here-are-the-dow-components-driving-the-blue-chip-stock-index-to-a-27000-milestone-2019-07-11

2019-07-11 18:36:00Z
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The Fed chairman says the relationship between inflation and unemployment is gone - CNBC

Federal Reserve Chairman Jerome Powell said the relationship between unemployment and inflation has collapsed.

"The relationship between the slack in the economy or unemployment and inflation was a strong one fifty years ago ... and has gone away," Powell said on Thursday during his testimony in front of the Senate Banking Committee. He added the strong tie between unemployment and inflation was broken at least 20 years ago and the relationship "has become weaker and weaker and weaker."

"In additional to that, we are learning that the neutral interest rate is lower than we had thought and ... the natural rate of unemployment rate is lower than we thought. So monetary policy hasn't been as accommondative as we had thought," Powell said.

Under the Fed's dual mandate of full employment and price stability, the jobless rate has been historically low, inching up to 3.7% in June from 3.6% in May, which was the lowest since 1969. Inflation has been tame in recent years and consistently below the Fed's 2% target.

The so-called "Phillips Curve," which the Fed relies on in guiding its policy direction, argues that as unemployment declines, inflation should rise, a phenomenon that has not occurred during this economic expansion.

"At the end of the day, there has to be a connection because low employment will drive wages up and ultimately higher wages will drive inflation, but we haven't reached that point. In many cases, that connection between the two is quote small these days," the Fed chief said.

U.S. underlying consumer prices rose by the most in nearly one and a half years in June, but the jump didn't change markets' expectation for a rate cut later this month.

Traders are pricing in a 100% chance of a rate cut in July in part because inflation has remained so low, according to CME FedWatch tool. Powell's testimony also fueled the hope for an easier policy.

Powell said on Wednesday the Fed will "act as appropriate" to sustain expansion as "crosscurrents" are weighing on the economic outlook. He noted business investments across the U.S. have slowed "notably" recently.

The Fed lowered its inflation target for 2019 at its June policy meeting, seeing the headline inflation growing at a slower pace at 1.5%, versus the 1.8% predicted in March.

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https://www.cnbc.com/2019/07/11/the-fed-chairman-says-the-relationship-between-inflation-and-unemployment-is-gone.html

2019-07-11 15:29:59Z
52780328813959

Dow hits 27,000 for first time ever - CNN

Federal Reserve Chairman Jerome Powell shored up rate cut hopes with his testimony before the Senate Banking Committee Thursday and House Financial Services Committee Wednesday.

The Dow (INDU) rose to a fresh all-time intraday high before pulling back slightly. It is up 0.4% or 111 points.

The S&P 500 (SPX) is up a modest 0.1%.The S&P 500 is on track to climb to a fresh all-time high on Thursday, having ended just some three points below the record it set on July 3. The Nasdaq Composite (COMP), which closed at a new all-time high of 8,203 points on Wednesday, slipped into negative territory.

The market shrugged off slightly higher-than-expected consumer price data, released earlier. Inflation rose 1.6% year-over-year in June, as expected, but core inflation rose slightly to 2.1%, versus the expected 2%. Rising inflation doesn't bode well for the interest rate cut the market is hoping for.

Expectations for a quarter-percentage-point cut at the Fed's July 31 meeting are 80%, with the remaining 20% hoping for a 50 basis point decrease, according to the CME's FedWatch tool.

In remarks before the House on Wednesday, Powell noted that inflation continued to be below the central bank's 2% target.

Powell also cited uncertainties about trade and the global economy as threats to US economic growth during his Wednesday testimony. The market read his comments to mean that an interest rate cut could come at the end of the month.

On the trade front, President Donald Trump earlier tweeted that China is "letting us down in that they have not been buying the agricultural products from our great farmers that they said they would."

The United States and China agreed a ceasefire on raising tariffs on the sidelines of the G20 summit in Japan last month.

Powell is appearing before the Senate Banking Committee on Thursday morning, where his two-day bi-annual testimony will conclude.

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https://www.cnn.com/2019/07/11/investing/dow-stock-market-today/index.html

2019-07-11 14:37:00Z
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Amazon plans to retrain 100,000 employees - CNN

The training, which will be voluntary, expands upon Amazon's existing programs and initiatives. The idea is to help Amazon (AMZN) employees progress into more advanced jobs or even new positions outside of the company. It will be available to 100,000 workers by 2025.

Amazon is calling the plan "Upskilling 2025." Workers could use the training to transfer between positions that, without the training, they might not have been qualified for.

For example, warehouse workers in fulfillment centers could be trained for technical roles in IT and nontechnical workers could be retrained as software engineers, even if they have limited technical background.

Another training initiative, Amazon Apprenticeship, offers paid intensive classroom training and on-the-job apprenticeships within the company. Amazon is also emphasizing its growing cloud business with a training program that helps employees operate in the booming tech business.

"While many of our employees want to build their careers here, for others it might be a stepping stone to different aspirations," said Beth Galetti, Amazon's head of HR, in a prepared statement. "We think it's important to invest in our employees, and to help them gain new skills and create more professional options for themselves."

Amazon's initiative comes as robots and artificial intelligence are advancing and more capable of replacing human jobs.

Machines are expected to displace about 20 million manufacturing jobs across the world over the next decade, according to a recent report from Oxford Economics, a global forecasting and quantitative analysis firm. That amounts to 8.5% of the global manufacturing workforce being displaced by robots.

Amazon is also fighting for employees during one of the tightest labor markets. Upskilling 2025 could help attract more employees because of future opportunities they might not have been previously qualified for. The training also helps Amazon retain workers.

Some of the fastest-growing jobs are in skilled areas Amazon is training for, including software developers, according to the US Bureau of Labor Statistics.

"Through its Upskilling 2025 pledge, Amazon is focused on creating pathways to careers in areas that will continue growing in years to come, including healthcare, machine learning, manufacturing, robotics, computer science, cloud computing, and more," the company said in a statement.

The company is also dealing growing internal displeasure among from some fulfillment workers.

The Wall Street Journal first reported the news Thursday.

Recently, the company's plan to spend $800 million to speed up deliveries for Prime members sparked tension between the company and the leader of a major workers' union. They said the new shipping initiative could be dangers for workers and are struggling to keep up with demand.

Amazon was also criticized last April after it revealed the median pay for its global workforce, including part-timers, was $28,446 in 2017. The company said in October that it would raise its minimum wage to $15 per hour for US employees.

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https://www.cnn.com/2019/07/11/tech/amazon-retraining-workers/index.html

2019-07-11 14:16:00Z
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Dow tops 27,000 as Wall Street surges after Powell signals rate cut - Fox Business

The Dow Jones Industrial Average topped 27,000 for the first time on Thursday as the top three equity benchmarks traded higher on Wall Street after Federal Reserve Chairman Jerome Powell signaled the central bank was still moving towards an interest rate cut due to trade uncertainties.

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Following several days of uneven trading activity over concerns that the Federal Reserve would withhold moving forward on the expected cuts, investors were optimistic after Powell’s remarks that the central bank’s outlook for the U.S. economy is weighed down by trade tensions.

Many Federal Open Markets Committee participants “saw that the case for a somewhat more accommodative monetary policy had strengthened," he said in prepared testimony for the House Financial Services Committee.

Powell is back on Capitol Hill for a second round of testimony, this time before the Senate.

Ticker	Security	Last	Change	%Chg
I:DJI	DOW JONES AVERAGES	26956.74	+96.54	+0.36%
SP500	S&P 500	2996.66	+3.59	+0.12%
I:COMP	NASDAQ COMPOSITE INDEX	8206.503664	+3.97	+0.05%

Powell also said a strong June jobs report did not change the central bank's economic outlook or policy on interest rates. He is scheduled to testify in front of a Senate panel on Thursday.

In economic news, initial claims for state unemployment benefits declined 13,000 to a seasonally adjusted 209,000 for the week ended July 6, the lowest level since April, the Labor Department said.

Shares of technology companies will be active after the French government on Thursday approved a new tax on those firms amid a probe into the measure by the U.S. government. The 3 percent tax on companies with roughly $845 million in global revenue and $281 million in digital sales in France will take effect retroactively to the start of 2019.

Meanwhile, investors are eagerly awaiting a July 31 policy meeting to see if the Federal Reserve moves forward with the rate cuts.

In company earnings news, shares of Delta Air Lines surged on better-than-expected results for the second quarter. Profits at the Atlanta-based carrier rose 32 percent to $2.35 per share, as revenue grew to $12.5 billion.

Ticker	Security	Last	Change	%Chg
DAL	DELTA AIR LINES INC.	60.37	+0.90	+1.51%

Last month, President Trump and Chinese President Xi Jinping agreed to relaunch trade talks after negotiations fell apart in May.

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Top White House officials had “constructive” talks with Chinese Vice Premier Liu He and Minister Zhong Shan earlier this week and a face-to-face meeting is possible.

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https://www.foxbusiness.com/markets/us-stocks-wall-street-july-11-2019

2019-07-11 14:03:54Z
52780328813959

Wall Street adds to gains after Powell signals rate cut - Fox Business

MORE FROM FOXBUSINESS.COM...

Powell is back on Capitol Hill for a second round of testimony, this time before the Senate.

Ticker	Security	Last	Change	%Chg
I:DJI	DOW JONES AVERAGES	27004.91	+144.71	+0.54%
SP500	S&P 500	3000.02	+6.95	+0.23%
I:COMP	NASDAQ COMPOSITE INDEX	8215.427629	+12.90	+0.16%

Powell also said a strong June jobs report did not change the central bank's economic outlook or policy on interest rates. He is scheduled to testify in front of a Senate panel on Thursday.

In economic news, initial claims for state unemployment benefits declined 13,000 to a seasonally adjusted 209,000 for the week ended July 6, the lowest level since April, the Labor Department said.

Meanwhile, investors are eagerly awaiting a July 31 policy meeting to see if the Federal Reserve moves forward with the rate cuts.

Ticker	Security	Last	Change	%Chg
DAL	DELTA AIR LINES INC.	60.08	+0.61	+1.03%

Last month, President Trump and Chinese President Xi Jinping agreed to relaunch trade talks after negotiations fell apart in May.

CLICK HERE TO GET THE FOX BUSINESS APP

Top White House officials had “constructive” talks with Chinese Vice Premier Liu He and Minister Zhong Shan earlier this week and a face-to-face meeting is possible.

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https://www.foxbusiness.com/markets/us-stocks-wall-street-july-11-2019

2019-07-11 13:48:26Z
52780328813959

US core inflation posts biggest gain in nearly 1 1/2 years - CNBC

U.S. underlying consumer prices increased by the most in nearly 1-1/2 years in June amid solid gains in the costs of a range of goods and services, but will probably not change expectations the Federal Reserve will cut interest rates this month.

The Labor Department said on Thursday its consumer price index excluding the volatile food and energy components rose 0.3% last month. That as the largest increase since January 2018 and followed four straight monthly gains of 0.1%. The so-called core CPI was boosted by strong increases in the prices for apparel, used cars and trucks, as well as household furnishings.

There were also increases in the cost of healthcare and rents. In the 12 months through June, the core CPI climbed 2.1% after advancing 2.0% in May.

The overall CPI edged up 0.1% last month, held back by cheaper gasoline and food prices. The CPI rose 0.1% in May. It increased 1.6% year-on-year in June after rising 1.8% in May.

Economists polled by Reuters had forecast the CPI unchanged in June and rising 1.6% year-on-year.

The Fed, which has a 2% inflation target, tracks the core personal consumption expenditures (PCE) price index for monetary policy. The core PCE price index increased 1.5 percent year-on-year in May and has undershot its target this year.

Fed Chairman Jerome Powell on Wednesday told lawmakers the U.S. central bank would "act as appropriate" to protect the economy from rising risks such as trade tensions and slowing global growth. Powell also said "there is a risk that weak inflation will be even more persistent than we currently anticipate."

Policymakers from the U.S. central bank are scheduled to meet on July 30-31. The Fed last month downgraded its inflation projection for 2019 to 1.5% from the 1.8% projected in March.

In June, gasoline prices dropped 3.6% after falling 0.5% in May. Food prices were unchanged last month after rebounding 0.3% in May. Food consumed at home fell 0.2%.

Owners' equivalent rent of primary residence, which is what a homeowner would pay to rent or receive from renting a home, rose 0.3% in June, matching May's gain. Healthcare costs increased 0.3%, after a similar advance in May.

Apparel prices surged 1.1% after being unchanged in May. Prices for these goods tumbled in March and April after the government introduced a new method and data to calculate their cost. Used motor vehicles and trucks prices jumped 1.6% in June after declining for four straight months.

The price of household furnishings and operations rose 0.8%, the biggest gain since 1991, driven by rising costs for gardening and lawncare services.

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https://www.cnbc.com/2019/07/11/consumer-price-index-june-2019.html

2019-07-11 13:05:12Z
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