US STOCKS: Late Equities Roundup: Off Midday Lows, Possible Auto Tariff Deal
Apr-14 18:40
- Stocks have rebounded from midday lows, the S&P eminis narrowly outperforming the DJIA and Nasaq indexes in late Monday trade. Currently, the DJIA trades up 420.12 points (1.04%) at 40632.29, S&P E-Minis up 68.5 points (1.27%) at 5459.75, the Nasdaq up 163.7 points (1%) at 16887.7.
- Information Technology sector shares still lead gainers in late trade despite ongoing tariff uncertainty after Trump denied that US officials said smartphones, computers, and other consumer electronics were excluded from tariffs over the weekend.
- "There was no tariff exception" announcement Trump said, while officials are "looking at chips, whole electronics supply chain; chips to be assessed in national Security tariff probes." Nevertheless, "markets very strong once they got used to tariffs" Trump just posted.
- Stocks appeared to gain support after midday on a couple items: Pres Trump said he was "exploring possible exemptions to his tariffs on imported vehicles and parts" while Fed Gov Waller called for "flexible" monetary policy while also maintaining his view that the inflationary effects of tariffs are likely to be temporary.
- Late session gainers included Palantir Technologies +5.22%, First Solar +5.00%, Western Digital +4.65%, Enphase Energy +4.63%, Dell Technologies +4.25% and Intel +3.72%. Other gainers included Charles River Laboratories +6.25%, Ford Motor +4.02%, Citigroup +3.72% and Aptiv +3.61%.
- Health Care sector shares underperformed in late Monday trade, namely Humana -4.01%, DaVita -3.61% and UnitedHealth Group -2.74%. Other laggers included Southwest Airlines -2.63%, Meta Platforms -1.87% and Broadcom -1.80%.
- Earnings expected Tuesday: PNC Financial Services, Bank of America, Johnson & Johnson, Sandisk Corp, Albertsons Cos, Citigroup, Interactive Brokers, JB Hunt Transport, United Airlines and Omnicom Group.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
FED: March Economic Projections: Higher Inflation, Weaker Growth, Same Rates
Mar-14 21:28
The MNI Markets Team’s expectations for the updated Economic Projections in the March SEP are below.
- The unemployment rate is likely to rise slightly for 2025 alongside a downgrade in GDP growth, while the 2025 core and headline PCE inflation projections are set to rise again. Changes to later years will likely be limited, however.
- More detail on the shift in Fed funds rate medians is in our meeting preview - we will add more color next week.
FED: Market Pricing Nearly 3 2025 Cuts As Conditions Tighten
Mar-14 21:25
Amid rising government policy uncertainty, sentiment among businesses and consumers has fallen sharply since the start of the year, while equities and the dollar have reversed their post-election rise. Overall, financial conditions have tightened, even if stress is not yet mounting, e.g. no major widening of credit spreads (the accompanying chart shows the Fed’s financial conditions impulse index but only through January).
- Combined with growth fears, this has affected expectations for the Fed’s rate path, with around 18bp more cuts expected in 2025 compared with what was seen after the January FOMC. 65bp of cuts are priced for the year as a whole. 2025 cut pricing reached 71bp before the February inflation data and 76bp before the February payrolls report.
- A rate cut is seen with near zero probability for March’s meeting, but the first full cut is just about priced for June, with a second nearly priced by September.
- Chair Powell has no reason to endorse or refute these expectations – he’s likely to be happy with a press conference that ends with little discernable change in pricing.
CANADA'S CARNEY ANNOUNCES ELIMINATION OF THE CONSUMER CARBON TAX
Mar-14 21:17
- CANADA'S CARNEY ANNOUNCES ELIMINATION OF THE CONSUMER CARBON TAX
