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Los Angeles Times
19 hours ago
- Business
- Los Angeles Times
U.S. stocks drift to a mixed finish as Wall Street closes another week of modest losses
U.S. stocks drifted to a mixed finish on Friday in a quiet return to trading following the Juneteenth holiday. The S&P 500 fell 0.2% to close out a second straight week of modest losses. The Dow Jones Industrial Average added 35 points, or 0.1%, and the Nasdaq composite fell 0.5%. Treasury yields also held relatively steady in the bond market after President Donald Trump said he will decide within two weeks whether the U.S. military will get directly involved in Israel's fighting with Iran. The window offers the possibility of a negotiated settlement over Iran's nuclear program that could avoid increased fighting. The conflict has sent oil prices yo-yoing over the last week, which has in turn caused see-saw moves for the U.S. stock market, because of rising and ebbing fears that the war could disrupt the global flow of crude. Iran is a major producer of oil and also sits on the narrow Strait of Hormuz, through which much of the world's crude passes. 'We're all waiting on pins and needles to see what happens with the Israel-Iran situation,' said Brian Jacobsen, chief economist at Annex Wealth Management. 'These types of situations can stress markets, but often the best way to manage that stress is to just ride through it and not try to trade it.' On Wall Street, Kroger rose 9.8% after the grocer reported a better profit for the latest quarter than Wall Street had forecast. It also raised its forecast for an underlying measure of revenue for the full year. But while Chief Financial Officer David Kennerley said it's seeing positive momentum, the company is also still seeing an uncertain overall economic environment. CarMax climbed 6.6% after the auto dealer reported a stronger profit for the latest quarter than analysts expected. The company said it sold nearly 6% more used autos during the quarter than it did a year earlier. On the losing end of Wall Street was Smith & Wesson Brands, the maker of guns. It tumbled 19.8% after reporting profit and revenue for the latest quarter that fell just shy of analysts' expectations. Chief Financial Officer Deana McPherson said 'persistent inflation, high interest rates, and uncertainty caused by tariff concerns' have been hurting sales for firearms, and the company expects demand in its upcoming fiscal year to be similar to this past year's, depending on how inflation and tariffs play out. All told, the S&P 500 fell 13.03 points to 5,967.84. The Dow Jones Industrial Average rose 35.16 to 42,206.82, and the Nasdaq composite fell 98.86 to 19,447.41. A spate of companies has been adjusting or even withdrawing their financial forecasts for 2025 because of all the uncertainty that tariffs are creating for customers and for suppliers. Everyone is waiting to see whether Trump will reach trade deals with other countries that could lower his tariffs on imports, many of which are currently on pause. It's not just corporate America that's waiting. The Federal Reserve has been keeping its main interest rate on hold this year, with its latest such decision coming earlier this week, because it wants to see more data about how much tariffs will grind down on the economy and push up inflation. In the bond market, Treasury yields held relatively stable. The yield on the 10-year Treasury edged down to 4.37% from 4.38% late Wednesday. The two-year yield, which more closely tracks expectations for what the Fed will do, fell to 3.90% from 3.94%. In stock markets abroad, indexes were mixed across Europe and Asia. Tokyo's Nikkei 225 index slipped 0.2% after Japan reported that its core inflation rate, excluding volatile food prices, rose to 3.7% in May, adding to challenges for Prime Minister Shigeru Ishiba's government and the central bank. Choe and Cerojano write for Associated Press.
Zawya
a day ago
- Business
- Zawya
Stocks take a breather as investors assess geopolitics, economic data
Investors will focus on the Israel-Iran conflict and U.S. economic data releases next week to assess the near-term outlook for stocks, as the S&P 500 hovers just below its February highs. The S&P 500 has rebounded sharply from its early-April selloff, as tariff-related tensions have eased. However, the U.S. benchmark index appears to be taking a breather at some 2.7% below its February closing high. The index has gone 27 trading sessions since coming within 5% of its February high but has not yet set a new record. With Israel and Iran trading missiles, escalating threats of a sweeping conflict in the Middle East sent oil prices sharply higher and led to caution in markets. "We're all waiting on pins and needles to see what happens with the Israel-Iran situation," said Brian Jacobsen, chief economist at Annex Wealth Management. So far, the oil market has absorbed most of the impact from geopolitical turmoil, with equities relatively stable. Yet stock investors remain concerned that higher oil prices could stoke inflation and upset plans for interest rate cuts from the Federal Reserve. On Wednesday, the Fed held rates steady and policymakers signaled borrowing costs are still likely to fall this year. But they estimated the overall pace of expected future rate cuts would be slower than they saw at their March meeting. They cited expectations that higher inflation would flow from President Donald Trump's tariff plans. "The question is oil prices and what that does to inflation – which has implications for monetary policy and how long the Fed keeps rates "meaningfully restrictive"," said Sonu Varghese, global macro strategist at Carson Group. The big near-term risk for equities, investors said, was if the U.S. were to join Israel's bombing campaign against arch-enemy Iran. Trump is keeping the world guessing whether the U.S. would join Israel's bombardment of Iranian nuclear and missile sites, as residents of Iran's capital Tehran streamed out of the city on the sixth day of the air assault. The White House said on Thursday that Trump would decide on U.S. action in the next two weeks. "If we were to see the U.S. enter the war or further escalation in the attacks between the two countries, that would give the S&P 500 and equity markets more reasons to react negatively," said Damian McIntyre, head of multi-asset solutions at Federated Hermes in Pittsburgh. On the other hand, a de-escalation in Middle East tensions could prompt a relief rally for stocks. "If both sides can kind of just slowly de-escalate, that would be positive for equity markets, positive for risk markets," McIntyre said. "Markets are taking a bit of a wait-and-see approach here," he said. Still, any stock market pullbacks due to rising geopolitical tensions are likely to be fleeting, investors said. "History says that usually military shocks are shallow and short-lived, and so until further notice, I think that's how Wall Street will react to this one," Sam Stovall, chief investment strategist at CFRA Research, said. Investors will also parse a slew of incoming data releases, including U.S. business activity and housing sales on Monday, consumer confidence numbers on Tuesday and the PCE Price Index on Friday. U.S. consumer confidence plunged in the past few months, with households fearing tariffs could prompt a recession and higher inflation. However, with inflation in check and the U.S. reaching a truce in its trade fight with China, investors expect to see a pickup in sentiment. "Remember, the survey-based data all got crushed in the March, April, May time frame ... my expectation is we're still going to see an improvement," Mark Hackett, chief market strategist at Nationwide said. (Reporting by Saqib Iqbal Ahmed; Editing by Alden Bentley, David Gregorio and Susan Fenton)
Reuters
a day ago
- Business
- Reuters
Wall St Week Ahead Stocks take a breather as investors assess geopolitics, economic data
NEW YORK, June 20 (Reuters) - Investors will focus on the Israel-Iran conflict and U.S. economic data releases next week to assess the near-term outlook for stocks, as the S&P 500 hovers just below its February highs. The S&P 500 (.SPX), opens new tab has rebounded sharply from its early-April selloff, as tariff-related tensions have eased. However, the U.S. benchmark index appears to be taking a breather at some 2.7% below its February closing high. The index has gone 27 trading sessions since coming within 5% of its February high but has not yet set a new record. With Israel and Iran trading missiles, escalating threats of a sweeping conflict in the Middle East sent oil prices sharply higher and led to caution in markets. "We're all waiting on pins and needles to see what happens with the Israel-Iran situation," said Brian Jacobsen, chief economist at Annex Wealth Management. So far, the oil market has absorbed most of the impact from geopolitical turmoil, with equities relatively stable. Yet stock investors remain concerned that higher oil prices could stoke inflation and upset plans for interest rate cuts from the Federal Reserve. On Wednesday, the Fed held rates steady and policymakers signaled borrowing costs are still likely to fall this year. But they estimated the overall pace of expected future rate cuts would be slower than they saw at their March meeting. They cited expectations that higher inflation would flow from President Donald Trump's tariff plans. "The question is oil prices and what that does to inflation – which has implications for monetary policy and how long the Fed keeps rates "meaningfully restrictive"," said Sonu Varghese, global macro strategist at Carson Group. The big near-term risk for equities, investors said, was if the U.S. were to join Israel's bombing campaign against arch-enemy Iran. Trump is keeping the world guessing whether the U.S. would join Israel's bombardment of Iranian nuclear and missile sites, as residents of Iran's capital Tehran streamed out of the city on the sixth day of the air assault. The White House said on Thursday that Trump would decide on U.S. action in the next two weeks. "If we were to see the U.S. enter the war or further escalation in the attacks between the two countries, that would give the S&P 500 and equity markets more reasons to react negatively," said Damian McIntyre, head of multi-asset solutions at Federated Hermes in Pittsburgh. On the other hand, a de-escalation in Middle East tensions could prompt a relief rally for stocks. "If both sides can kind of just slowly de-escalate, that would be positive for equity markets, positive for risk markets," McIntyre said. "Markets are taking a bit of a wait-and-see approach here," he said. Still, any stock market pullbacks due to rising geopolitical tensions are likely to be fleeting, investors said. "History says that usually military shocks are shallow and short-lived, and so until further notice, I think that's how Wall Street will react to this one," Sam Stovall, chief investment strategist at CFRA Research, said. Investors will also parse a slew of incoming data releases, including U.S. business activity and housing sales on Monday, consumer confidence numbers on Tuesday and the PCE Price Index on Friday. U.S. consumer confidence plunged in the past few months, with households fearing tariffs could prompt a recession and higher inflation. However, with inflation in check and the U.S. reaching a truce in its trade fight with China, investors expect to see a pickup in sentiment. "Remember, the survey-based data all got crushed in the March, April, May time frame ... my expectation is we're still going to see an improvement," Mark Hackett, chief market strategist at Nationwide said.
Yahoo
a day ago
- Business
- Yahoo
Wall St Week Ahead: Stocks take a breather as investors assess geopolitics, economic data
By Saqib Iqbal Ahmed NEW YORK (Reuters) -Investors will focus on the Israel-Iran conflict and U.S. economic data releases next week to assess the near-term outlook for stocks, as the S&P 500 hovers just below its February highs. The S&P 500 has rebounded sharply from its early-April selloff, as tariff-related tensions have eased. However, the U.S. benchmark index appears to be taking a breather at some 2.7% below its February closing high. The index has gone 27 trading sessions since coming within 5% of its February high but has not yet set a new record. With Israel and Iran trading missiles, escalating threats of a sweeping conflict in the Middle East sent oil prices sharply higher and led to caution in markets. "We're all waiting on pins and needles to see what happens with the Israel-Iran situation," said Brian Jacobsen, chief economist at Annex Wealth Management. So far, the oil market has absorbed most of the impact from geopolitical turmoil, with equities relatively stable. Yet stock investors remain concerned that higher oil prices could stoke inflation and upset plans for interest rate cuts from the Federal Reserve. On Wednesday, the Fed held rates steady and policymakers signaled borrowing costs are still likely to fall this year. But they estimated the overall pace of expected future rate cuts would be slower than they saw at their March meeting. They cited expectations that higher inflation would flow from President Donald Trump's tariff plans. "The question is oil prices and what that does to inflation – which has implications for monetary policy and how long the Fed keeps rates "meaningfully restrictive"," said Sonu Varghese, global macro strategist at Carson Group. The big near-term risk for equities, investors said, was if the U.S. were to join Israel's bombing campaign against arch-enemy Iran. Trump is keeping the world guessing whether the U.S. would join Israel's bombardment of Iranian nuclear and missile sites, as residents of Iran's capital Tehran streamed out of the city on the sixth day of the air assault. The White House said on Thursday that Trump would decide on U.S. action in the next two weeks. "If we were to see the U.S. enter the war or further escalation in the attacks between the two countries, that would give the S&P 500 and equity markets more reasons to react negatively," said Damian McIntyre, head of multi-asset solutions at Federated Hermes in Pittsburgh. On the other hand, a de-escalation in Middle East tensions could prompt a relief rally for stocks. "If both sides can kind of just slowly de-escalate, that would be positive for equity markets, positive for risk markets," McIntyre said. "Markets are taking a bit of a wait-and-see approach here," he said. Still, any stock market pullbacks due to rising geopolitical tensions are likely to be fleeting, investors said. "History says that usually military shocks are shallow and short-lived, and so until further notice, I think that's how Wall Street will react to this one," Sam Stovall, chief investment strategist at CFRA Research, said. Investors will also parse a slew of incoming data releases, including U.S. business activity and housing sales on Monday, consumer confidence numbers on Tuesday and the PCE Price Index on Friday. U.S. consumer confidence plunged in the past few months, with households fearing tariffs could prompt a recession and higher inflation. However, with inflation in check and the U.S. reaching a truce in its trade fight with China, investors expect to see a pickup in sentiment. "Remember, the survey-based data all got crushed in the March, April, May time frame ... my expectation is we're still going to see an improvement," Mark Hackett, chief market strategist at Nationwide said. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Global News
13-06-2025
- Business
- Global News
Oil prices leap amid worries about crude market due to Middle East conflict
Oil prices are leaping and stocks are falling Friday over worries that Israel's attack on Iranian nuclear and military targets could escalate further and damage the flow of crude around the world, along with the global economy. The price of a barrel of West Texas intermediate — the benchmark U.S. crude — jumped close to seven per cent on Friday morning to around US$72.65. Brent crude, the international standard, was also up around seven per cent to US$74.30 for a barrel. Western Canada select was selling at around $57.34 per barrel Friday morning. Iran is one of the world's major producers of oil, though sanctions by western countries have limited its sales. If a wider war erupts, it could slow the flow of Iran's oil to its customers and keep the price of crude and gasoline higher for everyone worldwide. Story continues below advertisement Beyond the oil coming from Iran, analysts also pointed to the potential for disruptions in the Strait of Hormuz, a relatively narrow waterway off Iran's coast, through which much of the world's oil moves on ships. View image in full screen Oil prices jumped on Friday on fears that a wider Middle East conflict could disrupt traffic in the Strait of Hormuz, through which much of the world's oil supply is shipped. File But past attacks involving Iran and Israel have seen prices for oil spike initially, only to fall later 'once it became clear that the situation was not escalating and there was no impact on oil supply,' according to Richard Joswick, head of near-term oil at S and P Global Commodity Insights. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy That has Wall Street waiting to see what will come next. For now, the price of oil has jumped, but it's still lower than it was earlier this year. 'This is an economic shock that nobody really needs, but it is one that seems more like a shock to sentiment than to the fundamentals of the economy,' said Brian Jacobsen, chief economist at Annex Wealth Management. Story continues below advertisement Global stock markets also dipped on news out of the Middle East, with the TSX, Canada's main stock index, off about 25 points to 26,590 at around noon eastern time. The Dow Jones Industrial Average was down about 400 points to 42,572.79 and the Nasdaq composite was off 100 points to 19,561. Shares in Exxon Mobil rose 1.5 per cent and ConocoPhillips gained 1.9 per cent because the leaping price of crude portends bigger profits for them. The Canadian dollar was up slightly to around 73.63 cents US. The price of gold also climbed about 1.5 per cent, to over US$3,400 and close to a record high as investors searched for safer places to park their cash. While sustained higher oil prices would likely lead to an increase in gasoline prices, they could be a blessing for Alberta's provincial budget, which was forecasting a $5.2-billion deficit on the expectation that oil prices would average about $68 per barrel. Each $1 increase in the price of oil is predicted to increase provincial government revenues by about $750 million. — with files from Reuters and Global News.
