Stock market today: Asian shares rise after Wall Street sets another record
TOKYO (AP) — Asian shares were mostly higher Friday, after U.S. stocks climbed to records, with easier interest rates beckoning on the horizon.
Japan’s benchmark Nikkei 225 added 0.7% in morning trading to 39,874.68. Sydney’s S&P/ASX 200 jumped 0.9% to 7,829.60. South Korea’s Kospi surged 1.4% to 2,683.76. Hong Kong’s Hang Seng rose nearly 1.1% to 16,400.38, while the Shanghai Composite slipped 0.1% to 3,023.74.
Although economic data from the region, such as China, remained relatively positive, investors stayed cautious. Higher interest rates could be in store, for instance, in Japan, once the economy picks up.
“This was driven by reports of (Bank of Japan) officials being more confident of wage growth as labor cash earnings outperformed,” said Tan Boon Heng at Mizuho Bank in Singapore.
On Wall Street, the S&P 500 rallied 1% to set its 16th all-time high so far this year. It’s been on a terrific run and is on track for its 17th winning week in the last 19 after erasing the last of its losses from Monday and Tuesday.
The Dow Jones Industrial Average added 130 points, or 0.3%, and the Nasdaq composite jumped 1.5% to finish just shy of its record.
Federal Reserve Chair Jerome Powell said in testimony on Capitol Hill that the central bank is “not far” from delivering the cuts to interest rates that Wall Street craves so much. He said again that the Fed is just waiting for additional data to confirm inflation is cooling.
It’s a key point on Wall Street because cuts to rates would release pressure on the economy and the financial system, while goosing investment prices. After shelving earlier hopes for cuts to begin in March, traders now see June as the likeliest starting point. The Fed’s main interest rate is at its highest level since 2001.
After getting criticism for waiting too long before raising interest rates when inflation was accelerating, Powell faced questions from the Senate’s banking committee about the possibility that it could be too late in cutting rates. That would cause undue pain because high rates slow the economy.
“We’re well aware of that risk, of course,” Powell said.
He said if conditions continue as expected, including a strong job market and cooling inflation, cuts will come later this year. Cutting rates too early could risk a reacceleration of inflation.
Treasury yields eased in the bond market after a couple reports gave potential signals of lessened pressure on inflation.
The yield on the 10-year Treasury dipped to 4.08% from 4.11% late Wednesday. It’s been generally falling since topping 5% last autumn, which can encourage borrowing across the economy and investors to pay higher prices for stocks. The two-year Treasury yield, which moves more closely with expectations for the Fed, fell by more.
Across the Atlantic, traders were also trying to guess when the European Central Bank will begin cutting interest rates after its president said it’s making progress on getting inflation under control.
One report said slightly more U.S. workers applied for unemployment benefits last week than expected, though the number remains low relative to history.
A potentially more impactful report will arrive Friday morning, when the U.S. government will give its latest monthly update on the job market. The hope among traders is that the job market remains healthy but not so much that it deters the Federal Reserve from cutting interest rates.
On Wall Street, Nvidia was again the strongest force lifting the S&P 500 upward and climbed 4.5%. It has soared 87% this year after more than tripling last year amid Wall Street’s frenzy around artificial-intelligence technology.
All told, the S&P 500 rose 52.60 points to 5,157.36. The Dow gained 130.30 to 38,791.35, and the Nasdaq composite climbed 241.83 to 16,273.38.
In energy trading, benchmark U.S. crude rose 37 cents to $79.30 a barrel. Brent crude, the international standard, gained 29 cents to $83.25 a barrel.
In currency trading, the U.S. dollar inched up to 147.97 Japanese yen from 147.90 yen. The euro cost $1.0953, little changed from $1.0951.
Stock market today: Wall Street pulls away from its record as technology stocks slump
NEW YORK (AP) — Wall Street slumped from its record Friday after Nvidia, one of its most influential stocks, suddenly gave up some of its meteoric gains.
The S&P 500 fell 0.7% in afternoon trading, coming off a record high close. The Dow Jones Industrial Average was down 55 points, or 0.1%, as of 1:46 p.m. Eastern time, and the Nasdaq composite was 1.2% lower.
Treasury yields eased in the bond market immediately after the release of a jobs report that economists called “all over the place.” It showed employers hired more workers last month than economists expected, but wages for workers rose by less than forecast. It also said job growth in January was not nearly as hot as earlier thought.
The job market and overall economy are in a delicate spot, where Wall Street wants them to continue growing, but not so much that it raises pressure on inflation.
The ultimate goal is for inflation to cool enough to convince the Federal Reserve to lower its main interest rate from its highest level since 2001. Such a move would release pressure on the financial system and the economy, which has so far remained out of a recession despite high interest rates.
“Big picture: these were helpful numbers for the Fed to gain confidence,” said Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management.
Following the report, bets built on Wall Street that the Fed will likely start cutting in June. The yield on the two-year Treasury, which follows expectations for the Fed, dipped to 4.47% from 4.51% late Thursday.
The yield on the 10-year Treasury, which also focuses on longer-term economic growth, likewise slumped immediately after the report, though it pared its drop later in the morning.
Wall Street loves lower interest rates because they encourage people and companies to borrow, which can strengthen the economy, and because they boost prices for stocks and other investments.
“Things are good, but not great, and they’re getting a touch worse,” Brian Jacobsen, chief economist at Annex Wealth Management, said about the jobs report. “The payroll gains are still fantastic, but we’re not as strong as we thought we were with the prior months’ numbers being revised down.”
Fed Chair Jerome Powell said a day earlier that the central bank is “not far” from cutting interest rates. It just needs additional data confirming that inflation is heading sustainably down to its 2% target.
In the meantime, the hope on Wall Street is that the remarkably resilient economy will drive growth in profits for companies.
Gap climbed 3.4% after the retailer reported stronger profit and revenue for the latest quarter than analysts expected. The retailer said an important sales trend returned to growth at both its Old Navy and Gap stores. The owner of Banana Republic and Athleta also gave a forecast for upcoming sales this year that was a touch higher than analysts’ estimates.
Gun maker Smith & Wesson Brands leaped 26.2% after likewise reporting stronger profit than expected for the latest quarter. It said its shipments grew faster than the overall firearm market.
Earlier in the day, Nvidia’s stock was once again leading the S&P 500 higher, as has become almost routine. But the index’s momentum let up later in the morning as Nvidia faded.
It’s a rare dip for the company, which has soared to become one of Wall Street’s most influential after more than tripling last year. It fell 6% Friday, but it’s still up 76% so far this year.
Also on the losing end was Broadcom, which fell even though it reported stronger results than expected. It dropped 6.3% after giving a forecast for revenue this upcoming year that was a touch below analysts’ expectations.
Costco Wholesale sank 7.2% after its revenue for the latest quarter fell shy of forecasts.
In stock markets abroad, indexes were mixed in Europe and rose modestly across much of Asia. South Korea was a standout as the Kospi jumped 1.2%.
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AP Business Writers Matt Ott and Yuri Kageyama contributed.
Stock market today: Wall Street drifts, and yields rise after solid data on the economy
NEW YORK (AP) — Wall Street is drifting Thursday following signals that the job market remains solid, though it may be a touch too strong.
The S&P 500 was 0.1% higher in afternoon trading. The Dow Jones Industrial Average was up 141 points, or 0.4%, as of 1:31 p.m. Eastern time, and the Nasdaq composite was virtually unchanged.
Eli Lilly rose 0.7% and was one of the strongest forces pushing upward on the S&P 500 after it launched a way to help customers get to its treatments for obesity, migraine and diabetes. Walgreens Boots Alliance sank 6.8% after it nearly halved its dividend so it could hold onto more cash.
U.S. stocks have broadly regressed this week after rallying nine straight weeks into the end of last year. Critics said the market was due for at least a breather following the big run, which fed on hopes that inflation has cooled enough for the Federal Reserve to cut interest rates sharply this year.
Rate cuts give prices for stocks and other investments a boost, while also relaxing the pressure on the economy and financial system. Treasury yields in the bond market have already eased since autumn on hopes for such cuts, releasing pressure on the stock market.
But Treasury yields rose Thursday following a couple reports on the job market that were stronger than expected. The economy is in a delicate phase where investors want it to remain solid, but not too hot.
A healthy job market is of course good for workers and stamps out worries about an imminent recession. But too much strength could prod the Federal Reserve to keep interest rates high because it could keep upward pressure on inflation. And the Fed has already hiked its main interest rate to the highest level since 2001.
One report from the U.S. government on Thursday showed fewer U.S. workers filed for unemployment benefits last week than expected. Another from ADP Research Institute said private employers accelerated their hiring last month by more than economists expected.
A more comprehensive report on the jobs market from the U.S. Labor Department will arrive on Friday. Economists expect that to show U.S. hiring slowed to 160,000 jobs last month from 199,000 in November.
“If tomorrow’s numbers show the same kind of strength and the economy keeps rolling along, it’s fair to wonder why the Fed would be in a rush to cut rates,” said Chris Larkin, managing director, trading and investing at E-Trade from Morgan Stanley.
Traders are betting the Federal Reserve will cut interest rates by twice as much this year as the central bank has indicated. Wall Street is also thinking the first cut could come as soon as March, and a stronger-than-expected economy makes such predictions less realistic. Critics had already called them overly aggressive.
A third report from S&P Global said that growth for financial businesses and others in U.S. services industries was a touch stronger last month than expected.
Following Thursday’s data reports, the yield on the 10-year Treasury rose to 4% from 3.91% late Wednesday. The yield on the two-year Treasury, which more closely tracks expectations for the Fed, climbed to 4.40% from 4.33%.
Stocks have already rallied in part on expectations for sharp cuts coming to interest rates soon. If the Fed doesn’t cut as deeply and as quickly as expected, prices for stocks and other investments could be in jeopardy.
On Wall Street, Peloton Interactive jumped 14.1% after it announced a partnership to bring its workout content to TikTok.
APA fell 6.7% after it said it will buy Callon Petroleum in an all-stock deal valued at roughly $4.5 billion, including debt. Callon Petroleum gained 3.9%.
In stock markets abroad, indexes were modestly higher in much of Europe and a bit lower in much of Asia.
In Tokyo, the mood was somber as the market reopened from the New Year holidays with a moment of silence after a major earthquake Monday left at least 77 people dead and dozens missing.
Dark-suited officials bowed their heads in a ceremony that usually features women clad in colorful kimonos. Japan’s benchmark Nikkei 225 fell 0.5%.
Stock market today: Wall Street edges lower as its weak start to 2024 carries into another day
NEW YORK (AP) — Stocks are slipping Wednesday as Wall Street’s slow start to 2024 carries into a second day.
The S&P 500 was down 0.3% in afternoon trading, though still within 2% of its record set exactly two years ago. The Dow Jones Industrial Average was down 115 points, or 0.3%, as of 2:30 p.m. Eastern time, and the Nasdaq composite was 0.7% lower.
Some of last year’s biggest winners were again giving back some of their gains. Tesla fell 2.9% after more than doubling last year, for example. It and the other six “Magnificent 7” Big Tech stocks responsible for the majority of Wall Street’s returns last year have regressed some following their tremendous runs.
The question hanging over the market is whether all the enthusiasm that helped stocks broadly rally for nine straight weeks into the start of this year was warranted. It was built on expectations that inflation has cooled enough for the Federal Reserve to not only halt its hikes to interest rates but to cut them several times this year. Hopes are also high the economy can escape a recession, even after the Fed hiked its main interest rate to the highest level since 2001.
A couple of reports released Wednesday morning indicated the overall economy may indeed be slowing from its strong growth last summer, which the Federal Reserve hopes will keep a lid on inflation. A big danger is if it slows too much and begins shrinking.
One report showed U.S. employers were advertising nearly 8.8 million job openings at the end of November, down slightly from the month before and the lowest number since early 2021. The report also showed slightly fewer workers quit their jobs during November.
The Fed is looking for exactly such a cooldown, which it hopes will limit upward pressure on inflation without necessitating widespread layoffs across the economy.
“These data will be welcome news for policymakers,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics.
A second report from the Institute for Supply Management showed the U.S. manufacturing industry is improving by a touch more than economists expected, but it’s still contracting. Manufacturing has been one of the hardest-hit areas of the economy recently, while the job market and spending by U.S. households have remained resilient.
Treasury yields slumped immediately after the reports and then yo-yoed though the day. The yield on the 10-year Treasury eventually slipped to 3.89% from 3.94% late Tuesday. It’s been generally falling since topping 5% in October, when it was putting tremendous pressure on the stock market.
In the afternoon, yields swung again after the Federal Reserve released the minutes from its latest policy meeting. It was at that meeting in December that policy makers hinted their dramatic campaign to hike interest rates to get inflation under control may be over. They also released projections showing their median official expects the federal funds rate to fall by 0.75 percentage points through 2024.
The minutes from the meeting revealed “almost all participants” indicated a drop in rates would likely be appropriate this year. But they also said their forecasts were hampered by an “unusually elevated degree of uncertainty.” A reacceleration of inflation, for example, could push them to actually raise rates further.
Fed officials also noted in their meeting how stock prices have rallied recently and Treasury yields have eased, conditions that can rev up the economy and add upward pressure on inflation.
While the Fed doesn’t like that, “the worst they’ll do is push out the date when they first cut,” said Brian Jacobsen, chief economist at Annex Wealth Management.
Traders are betting the first cut to rates could happen in March, and they’re putting a high probability on the Fed cutting its main interest rate by least 1.50 percentage points through the year, according to data from CME Group. The federal funds rate is currently sitting within a range of 5.25% to 5.50%.
Critics say that’s likely too bold a prediction. “The only way the Fed will cut more than four times in 2024 is if the economy is skidding out of control” into a recession, Jacobsen said.
Even if the Federal Reserve is able to pull off its perfect landing for the economy to shimmy away from high inflation without a downturn, some critics also say the stock market has simply run too far, too fast in recent months and is due for at least a pause in its run.
In stock markets abroad, indexes fell across much of Europe and Asia. Losses were particularly sharp in France, where the CAC 40 fell 1.6%, and in South Korea, where the Kospi sank 2.3%. Stocks in Shanghai were an outlier, rising 0.2%.
Google settles $5 billion privacy lawsuit over tracking people using 'incognito mode'
SAN FRANCISCO (AP) — Google has agreed to settle a $5 billion privacy lawsuit alleging that it spied on people who used the “incognito” mode in its Chrome browser — along with similar “private” modes in other browsers — to track their internet use.
The class-action lawsuit filed in 2020 said Google misled users into believing that it wouldn’t track their internet activities while using incognito mode. It argued that Google’s advertising technologies and other techniques continued to catalog details of users’ site visits and activities despite their use of supposedly “private” browsing.
Plaintiffs also charged that Google’s activities yielded an “unaccountable trove of information” about users who thought they’d taken steps to protect their privacy.
The settlement, reached Thursday, must still be approved by a federal judge. Terms weren’t disclosed, but the suit originally sought $5 billion on behalf of users; lawyers for the plaintiffs said they expect to present the court with a final settlement agreement by Feb. 24.
Google did not immediately respond to a request for comment on the settlement.
Disney says in lawsuit that DeSantis-appointed government is failing to release public records
Johnell Davis scored 35 points and FAU dodged Caleb Love’s 3-point attempt at the buzzer to win its fifth game over a ranked opponent over the past two seasons. The Owls had been 1-19 against AP Top 25 teams before last season.
RISING AND FALLING
FAU had the biggest jump of the week within the poll and No. 16 Duke climbed five places after beating No. 17 Baylor 78-70. No. 19 Memphis moved up four places following wins over Virginia and Vanderbilt.
No. 22 Creighton had the biggest drop of the week, falling 10 places after losing to Villanova in overtime. No. 12 Oklahoma fell five places after losing by 12 to No. 9 North Carolina.
IN AND OUT
No. 25 Providence moved into the poll for the first time since hitting No. 20 last Feb. 27 after beating No. 10 Marquette and Butler last week.
Virginia’s return to the AP Top 25 proved to be short lived. The Cavaliers dropped out this week from No. 22 after the loss to Memphis.
CONFERENCE WATCH
The Big 12 again had the most ranked teams with six and the Big East had four. The ACC, Big Ten and SEC each had three.
The American Athletic Conference had two ranked teams while the Pac-12, West Coast, Mountain West and Sun Belt conferences had one each.
More US auto buyers are turning to hybrids as sales of electric vehicles slow
DETROIT (AP) — America’s automakers have staked their futures on the notion that electric vehicles will dominate sales in the coming years, spurred by buyers determined to reduce carbon emissions and save on fuel.
But so far, while EV sales are growing, their pace is falling well short of the industry’s ambitious timetable for transitioning away from combustion engines. Instead, buyers are increasingly embracing a quarter-century-old technology whose popularity has been surging: The gas-electric hybrid, which alternates from gas to battery power to maximize efficiency.
So far in 2023, Americans have bought a record 1 million-plus hybrids — up 76% from the same period last year, according to Edmunds.com. As recently as last year, purchases had fallen below 2021’s total. This year’s figures don’t even include sales of 148,000 plug-in hybrids, which drive a short distance on battery power before a gas-electric system kicks in.
Though electric vehicle sales are nearing an annual record of over 1 million this year, their year-over-year growth rate has begun to stall. EVs still account for only about 7% of all U.S. auto sales.
The slowdown has raised concern among automakers that buyer interest in EVs is faltering. Some companies are cutting production and scaling down plans for new battery or assembly plants.
The reasons why hybrids have quickly become the preferred choice for many buyers vary. They range from the higher prices of comparable EVs to concern about the scarcity of charging stations to a recognition that hybrids provide many of the same advantages without the hassles of EVs.
Ford, the nation’s No. 2 hybrid seller behind Toyota, expects to produce enough hybrids to quadruple sales within five years. General Motors, which abandoned most hybrids in the U.S. four years ago in favor of EVs, now says it’s considering bringing them back.
In the meantime, surveys show that consumers remain uneasy about either the availability of charging stations or the sale prices of EVs — even factoring in tax credits that the federal government makes available for EV purchases in many cases.
“Your standard hybrid makes the most sense to most people,” said Ivan Drury, a director at the Edmunds.com auto website. “I think you’ll find that people don’t want to deal with the hassle or the difficulties of charging.”
Hybrids do emit some tailpipe pollution. But because they burn less fuel than autos equipped solely with gasoline engines, their emissions are less. What’s more, purchase prices for hybrids are akin to those of gas vehicles and typically far less than for comparable EVs.
“People are perfectly fine with a car that gets 45 or 50 miles per gallon, and you don’t have to do anything” different from current behavior, said Scott Adams, owner of a Toyota dealership in suburban Kansas City.
Here are some key reasons why hybrids, which use both a gas engine and battery power to efficiently turn the wheels, have taken off this year:
SAVING THE PLANET
The proliferation of wildfires, heat waves and more intense storms has led more people to view climate change as a grave crisis, one they can help mitigate by burning less carbon-spewing fuel. Yet even among those people, some remain skeptical that an electric vehicle will allow them to travel long distances or tow trailers.
“People want to participate in this — the idea of reducing carbon,” said Jack Hollis, who heads North American sales and marketing for Toyota, which leads in hybrid sales and has moved only gradually toward EVs. “I think the hybrid gives them what they’re most looking for.”
A LOWER PRICE
EV prices have being dropping, mainly a consequence of federal tax credits and price cuts by Tesla, the market leader. Yet they’re still pricier than hybrids or gas vehicles
After peaking at nearly $63,000 last year, the average EV sale price fell to just over $60,500 in November, not including tax credits or prices from Tesla, which doesn’t release them. Fewer EVs, though, will likely qualify for the tax credits in 2024 because of rules that will limit buyers from claiming a full credit if they purchase cars with battery materials from China or other countries that are considered hostile to the United States.
The average price of a hybrid has stabilized at roughly $42,000. A typical hybrid costs somewhat more than its gasoline counterpart. A Toyota RAV4 hybrid with all-wheel-drive, for example, starts at $32,825, $1,600 more than a comparable gas version.
Like many hybrid buyers, Shalinder Singh, an Uber driver from Sunnyvale, California, said that for him, the gas savings helped tip the price equation in favor of a 2024 Honda CR-V hybrid over the corresponding gasoline model.
“The mileage for the hybrid is too good,” said Singh, who makes frequent trips to San Francisco and San Jose.
The Environmental Protection Agency says a front-wheel-drive CR-V Hybrid gets 40 mpg in city and highway driving, 10 mpg better than the gas version. The owner of a hybrid CR-V who drives 15,000 miles annually would save $450 a year on fuel over the gas model.
LIFESTYLE NEEDS
Angie Rodesky, who recently moved to Jefferson City, Missouri, said her children wanted her to buy a Tesla to replace her old vehicle. Though she did consider an EV to help reduce emissions, she settled on a RAV4 hybrid because she travels frequently to see children in Florida and Delaware.
“I have a fear of plugging something in and not being able to travel as far, because it’s a 16-hour road trip from Delaware to Missouri,” Rodesky, 55, said. “I needed to make sure I had a vehicle that was comfortable to ride in and had good gas mileage.”
After buying a 2023 model from Adams Toyota near Kansas City, she had to wait a month for it to arrive, mainly because of heavy customer demand for the vehicle.
Brad Sowers, owner of Jim Butler Kia and other St. Louis-area dealerships, said customers who consider EVs often ask for hybrids or other alternatives.
“They look at it as a baby step into the EV world,” Sowers said. “They’re saying to themselves, ‘I can’t really do 100% battery psychologically.’ ”
COLDER WEATHER
Dealers say many hybrid buyers appear to have done research and know that cold weather reduces the range of an EV battery. Tests conducted in Norway, where nearly 80% of new vehicles are electric, found that EVs lose between 10% and 36% of their range during winter.
Most U.S. EV purchases occur on the coasts, where charging stations are more prevalent and weather is often warmer. In the Midwest, where stations are farther apart, Sowers said consumers worry about decreased wintertime range.
“It’s cold here,” he said. “The (charging) infrastructure isn’t that great.”
RELIABILITY
In its auto reliability survey this year, Consumer Reports found that hybrids were the industry’s most reliable type of power system. Electric vehicles were least reliable. EVs contain glitch-prone new technology, Consumer Reports said. Hybrids have less.
And with hybrids having been sold in the United States for more than two decades, automakers have had time to refine the vehicles’ engineering and construction. In general, vehicles that have been manufactured for longer periods are more reliable, said Jake Fisher, senior director of auto testing at Consumer Reports.
Analysts say they still think more EVs than hybrids will eventually be sold in the United States. With government help, the industry is moving to build many more charging stations. Ford, GM, Hyundai and others have reached agreements for owners of their vehicles to charge them at many of Tesla’s widespread stations. The industry is standardizing its plugs to match Tesla’s.
With direct-current fast chargers, charging times are becoming faster. Battery technology will likely improve cold-weather range, too.
In addition, next year, EVs’ tax credits will be counted at the time of sale, thereby reducing the price and easing monthly payments. This year, buyers had to wait for income tax returns to receive their money. In addition, over time, tighter fuel economy and pollution regulations will likely compel automakers to sell more EVs.
Spotify-CFO Leaves
FILE- This March 20, 2018, file photo shows the Spotify app on an iPad in Baltimore. Spotify’s chief financial officer, Paul Vogel, is leaving next year, the music streaming service said, Friday, Dec. 8, 2023, — just days after the company announced its third round of layoffs for 2023. (AP Photo/Patrick Semansky, File)
Stock market today: Wall Street adds some more to its stellar week and November so far
NEW YORK (AP) — Wall Street added a bit more Wednesday to its big rally from a day before.
The S&P 500 rose 7.18 points, or 0.2%, to 4,502.88. The Dow Jones Industrial Average gained 163.51, or 0.5%, to 34,991.21, and the Nasdaq composite edged up by 9.45, or 0.1%, to 14,103.84.
Target helped lead the market with a 17.8% jump after it reported much stronger profit for the latest quarter than analysts expected. But another big retailer, TJX, fell 3.3% after the parent company of T.J. Maxx and Marshalls gave a profit forecast for the upcoming holiday shopping season that fell short of analysts’ estimates.
Wall Street’s overall moves were more tentative coming off its best day since April, when an encouraging report on inflation boosted investors’ hopes that the Federal Reserve may finally be done with its hikes to interest rates. That in turn bolstered hopes the Fed can actually pull off the balancing act of getting high inflation under control without causing a painful recession.
Halfway through November, the S&P 50 has already jumped 7.4%, which would make this its best month in a year if it does nothing else for two weeks.
Treasury yields rose Wednesday, retracing a bit of the steep drops from the day before that had helped stocks to rally so much. The yield on the 10-year Treasury climbed to 4.53% from 4.45% late Tuesday, adding some pressure onto financial markets.
Another report on inflation Wednesday came in lower than expected. Prices at the wholesale level were 1.3% higher in October than a year earlier, and they surprisingly fell from September’s levels. That breathed more life into hopes that inflation is indeed cooling enough for the Fed to halt its barrage of rate hikes.
The Fed has already yanked its main interest rate to its highest level since 2001, up from virtually zero early last year. It’s hoping to slow the economy and hurt investment prices just enough to drive high inflation lower, without overdoing it.
But a separate report on sales at U.S. retailers released Wednesday morning “complicates the picture,” according to Chris Larkin, managing director at E-Trade from Morgan Stanley.
Sales fell 0.1% in October from September, holding up better than the 0.3% drop forecast by economists. Stronger-than-expected sales at U.S. retailers is an indicator of a healthier economy, which is important given worries still exist about a possible recession. But they could also feed into upward pressure on inflation, which could get the Fed nervous about interest rates.
The yield on the two-year Treasury, which tends to track expectations for the Fed, and other yields climbed immediately after the release of the retail sales data and other economic reports. The two-year yield rose to 4.91% from 4.84% late Tuesday.
The bond market has been at the center of Wall Street’s sharp swings because higher rates and yields hurt prices for all kinds of investments.
That’s had investors anxiously waiting for when the Fed could stop its torrent of hikes to rates and, perhaps more importantly, begin cutting them. Such cuts can act like steroids for markets, goosing investment prices and providing more oxygen for the financial system.
Traders on Wall Street have built expectations that the Fed could begin cutting rates as soon as the summer following the recently encouraging data on inflation. That’s despite officials at the Fed saying that they will likely keep interest rates high for a while in order to ensure the battle is definitively won against inflation.
Strategists at Goldman Sachs are warning the market’s expectations for rate cuts by major central banks around the world are “too large and too early,” while adding that even if rates are heading lower, they will not be low like they were before.
The strategists led by Praveen Korapaty are looking for U.S. economic growth to slow from its strong pace now, but not to fall in a recession, while inflation eases back towards the Fed’s target.
In stock markets abroad, indexes jumped in Asia after momentum from Wall Street’s big rally Wednesday headed westward. Hong Kong’s Hang Seng surged 3.9%, Japan’s Nikkei 225 gained 2.5% and South Korea’s Kospi rose 2.2%.
Reports showed that Japan’s economy contracted during the summer. In the world’s second-largest economy, meanwhile, a report showed the Chinese economy is holding up even as some indicators have slowed.
Stocks were also higher in Europe, but by more modest amounts than in Asia.
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AP Business Writers Yuri Kageyama and Matt Ott contributed.
Biden and Xi will meet Wednesday for talks on trade, Taiwan and managing fraught US-China relations
WASHINGTON (AP) — President Joe Biden and Chinese President Xi Jinping will meet Wednesday in California for talks on trade, Taiwan and managing fraught U.S.-Chinese relations in the first engagement between the leaders of the world’s two biggest economies in a year.
The White House has said for weeks that it anticipated Biden and Xi would meet on the sidelines of the Asia-Pacific Economic Cooperation summit in San Francisco, but negotiations went down to the eve of the gathering, which kicks off Saturday.
White House press secretary Karine Jean-Pierre said in a statement the leaders would discuss the “continued importance of maintaining open lines of communication” and how the they “can continue to responsibly manage competition and work together where our interests align, particularly on transnational challenges that affect the international community.”
China’s Foreign Ministry said in a statement Friday that Xi would attend APEC from Tuesday to Nov. 17 at Biden’s invitation and would take part in the U.S.-China summit.
Two senior Biden administration officials, who earlier briefed reporters on the condition of anonymity under ground rules set by the White House, said that the leaders would meet in the San Francisco Bay area but declined to offer further details because of security concerns. Thousands of protesters are expected to descend on San Francisco during the summit.
Treasury Secretary Janet Yellen and Chinese Vice Premier He Lifeng met on Thursday in the San Francisco, the latest in a string of senior level engagements between the nations in recent months aimed at easing tensions. Yellen and He are set to continue talks on Friday.
The Biden-Xi meeting is not expected to lead to many, if any, major announcements, and differences between the two powers certainly won’t be resolved. Instead, one official said, Biden is looking toward “managing the competition, preventing the downside risk of conflict and ensuring channels of communication are open.” The officials said they believed it would be Xi’s first visit to San Francisco since he was a young Communist Party leader.
The agenda includes no shortage of difficult issues.
Differences in the already complicated U.S.-Chinese relationship have only sharpened in the last year, with Beijing bristling over new U.S. export controls on advanced technology; Biden ordering the shooting down of a Chinese spy balloon after it traversed the continental United States; and Chinese anger over a stopover in the U.S. by Taiwanese President Tsai Ing-wen earlier this year, among other issues. China claims the island as its territory.
Biden will also likely press Xi on using China’s influence on North Korea, during heightened anxiety over an increased pace of ballistic missile tests by North Korea as well as Pyongyang providing munitions to Russia for its war in Ukraine.
The Democratic president is also expected to let Xi know that he would like China to use its burgeoning sway over Iran to make clear that Tehran or its proxies should not take action that could lead to expansion of the Israel-Hamas war. His administration believes the Chinese, a big buyer of Iranian oil, have considerable leverage with Iran, which is a major backer of Hamas.
Biden and Xi last met nearly a year ago on the sidelines of the Group of 20 summit in Bali, Indonesia. In the nearly three-hour meeting, Biden objected directly to China’s ”coercive and increasingly aggressive actions” toward Taiwan and discussed Russia’s invasion of Ukraine and other issues. Xi stressed that “the Taiwan question is at the very core of China’s core interests, the bedrock of the political foundation of China-U.S. relations, and the first red line that must not be crossed in China-U.S. relations.”
The Chinese foreign ministry said this time Biden and Xi would focus on “in-depth communications on the strategic, overall and directional issues of the China-US relations as well as major issues concerning world peace and development.”
Next week’s meeting comes as the United States braces for a potentially bumpy year for U.S.-Chinese relations, with Taiwan set to hold a presidential election in January and the U.S. holding its own presidential election next November.
Beijing sees official American contact with Taiwan as encouragement to make the island’s decades-old de facto independence permanent, a step U.S. leaders say they don’t support. Under the “One China” policy, the U.S. recognizes Beijing as the government of China and doesn’t have diplomatic relations with Taiwan, but it has maintained that Taipei is an important partner in the Indo-Pacific. Biden intends to reaffirm the U.S. wants no change in the status quo, one official said.
Disinformation experts testifying before the Senate Intelligence Committee have warned that Beijing could aim to target the U.S., sowing discord that might influence election results at the local level, especially in districts with large numbers of Chinese-American voters.
The Biden administration has sought to make clear to the Chinese that any actions or interference in the 2024 election “would raise extremely strong concerns from our side,” according to one official.
The officials also noted that Biden is determined to restore military-to-military communications that Beijing largely withdrew from after then-House Speaker Nancy Pelosi’s visit to Taiwan in August 2022.
All the while, the number of unsafe or provocative encounters involving the two nations’ ships and aircraft have spiked.
Last month, the U.S. military released a video of a Chinese fighter jet flying within 10 feet (3 meters) of an American B-52 bomber over the South China Sea, nearly causing an accident. Earlier that month, the Pentagon released footage of some of the more than 180 intercepts of U.S. warplanes by Chinese aircraft that occurred in the last two years, part of a trend U.S. military officials call concerning.
Gen. CQ Brown Jr., the top U.S. military commander, told reporters in Tokyo on Friday that restoration of military-to-military contacts is “hugely important” to “ensure there is no miscalculation” between the sides. He said he conveyed his desire to restart the dialogue in a letter to his Chinese counterpart.
The officials also said Biden would underscore U.S. commitment to the Philippines, following a recent episode in which Chinese ships blocked and collided with two Filipino vessels off a contested shoal in the South China Sea.
The Philippines and other neighbors of China are resisting Beijing’s sweeping territorial claims over virtually the entire sea.
“I want to be very clear,” Biden said in October. “The United States’ defense commitment to the Philippines is iron clad.”
Both sides appeared to be carefully considering security for the meeting, declining to publicize the venue of the much-anticipated talks.
Thousands of people protesting climate destruction, corporate practices, the Israel-Hamas war and other issues are expected to descend on San Francisco during the summit.
San Francisco Police Department Chief Bill Scott said his department expects several protests a day but doesn’t know which ones will materialize where and when. He said the city respects people’s right to mobilize peacefully but will not tolerate property destruction, violence or any other crime.
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Associated Press writer Janie Har in San Francisco and Ken Moritsugu in Beijing contributed reporting.
The India-US Chamber of Commerce of South Florida recently hosted an event that successfully brought together a diverse group of business professionals.
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"Boca Raton Screening of '1521' Builds Strong Community Bonds for South Florida's Filipino-American Community"
October 2, 20203
Boca Raton , FL
By Asiana Post
Boca Raton, Florida – In an extraordinary display of unity, leaders and community members from across South Florida came together at a sold-out screening of the documentary “1521,” hosted by the South Florida Filipino-American Chamber of Commerce (SFFACC). This event, which attracted attendees from West Palm Beach, Broward County, and Miami-Dade, has proven to be a pivotal moment in strengthening the bonds within the vibrant Filipino-American community
“1521,” a documentary that pays tribute to the enduring Filipino heritage, chronicles centuries of history, culture, and resilience. Through this screening, the SFFACC aimed to not only celebrate this rich cultural legacy but also to foster dialogue and connections among its members.
Darren Mendoza Vice President of the SFFACC, highlighted the organization’s mission: “Our objective was to honor our heritage and to bring our community closer together. Boca Raton was the perfect location, allowing us to extend our hand of friendship to our neighbors from West Palm Beach, Broward County, and Miami-Dade, forging a sense of unity among us.”
The response to the event was overwhelming, with a diverse array of attendees, including professionals, civic leaders, and Filipino-American families. Following the screening, spirited discussions erupted, as attendees eagerly shared their personal experiences and reflections on Filipino culture and heritage.
This exchange of ideas and heartfelt stories underscored the event’s significance in building bridges within the community. It not only celebrated Filipino heritage but also established the groundwork for future collaborations, networking opportunities, and a profound sense of belonging among the Filipino-American community.
The SFFACC, with its history of championing economic and cultural growth within the community, is at the forefront of efforts to create a more tightly knit community in South Florida. Their vision transcends mere cultural celebration; it encompasses forging enduring connections that enrich the entire region.
The influence of events like these extends far beyond the event venue, serving as a catalyst for new partnerships and initiatives that benefit the entire region. As bonds within the Filipino-American community continue to strengthen, opportunities for collaboration and mutual support multiply.
The South Florida Filipino-American Chamber of Commerce shows no signs of slowing down. In the coming months, they plan to maintain their momentum by hosting a series of cultural and networking events designed to deepen unity and collaboration within the Filipino-American community across South Florida.
The sold-out screening of “1521” in Boca Raton exemplifies the SFFACC’s vision for a more interconnected and dynamic Filipino-American community in South Florida. As the organization continues to lead the way, events like this will remain beacons of unity, celebrating culture, heritage, and the resilient spirit of the Filipino-American community throughout the region.
SFFACC's Inaugural Triumph: A Night of Inspiration and Unity
The South Florida Filipino-American Chamber of Commerce (SFFACC) marked a momentous occasion with its inaugural event, an evening that brought together the Filipino-American community and showcased its vibrant spirit, entrepreneurial talent, and unwavering unity. With esteemed special speakers like Mo Hasan and Josie Smith Malave, and the notable presence of Omilani Alarcon, Faye Hanvivatpong, and the visionary leadership of President Lady Bautista, this event was nothing short of a resounding success that set a powerful precedent for the Filipino American community in South Florida.
Culinary Excellence: Josie Smith Malave’s Flavorful Journey
Josie Smith Malave, a distinguished chamber member, and Bravo TV’s Top Chef alumna, took the stage, sharing her remarkable journey through the culinary world. With roots in Filipino cuisine, Malave captivated the audience with her culinary prowess, showcasing the rich flavors and cultural significance of Filipino dishes. Her success story was not just about cooking; it was a testament to the power of passion, determination, and embracing one’s cultural heritage.
Attendees were treated to an exquisite culinary experience that celebrated the fusion of Filipino and American flavors, leaving their taste buds tingling with delight. Malave’s presentation exemplified how the Filipino-American community can make its mark in diverse fields, including the culinary arts.
Lady Bautista: The Visionary Leader
Throughout the evening, the driving force behind the event’s success was evident in the dynamic leadership of Lady Bautista, the President of SFFACC. Her unwavering commitment to the Filipino-American community, coupled with her visionary approach to community building and entrepreneurship, set the stage for an evening filled with inspiration and promise.
Bautista’s dedication to fostering connections, empowering entrepreneurs, and celebrating Filipino culture laid the foundation for the chamber’s future endeavors. Under her leadership, SFFACC has embarked on a transformative journey that promises to elevate the Filipino-American community in South Florida to new heights.
Mo Hasan: The Catalyst for Inspiration
The event commenced with a captivating keynote address by Mo Hasan, a two-time TED Talk speaker known for his thought-provoking ideas on innovation and resilience. Hasan’s words resonated deeply with the audience, emphasizing the transformative power of community and collaboration. Drawing from his own life experiences, Hasan inspired attendees to dream big, think differently, and harness the strength of their collective potential.
Hasan’s remarkable ability to connect with the audience set the tone for the evening, igniting a spark of motivation that would reverberate throughout the event. His message was a testament to the limitless possibilities that arise when a community comes together with a shared vision for success.
Omilani Alarcon: Celebrating Cultural Fusion
Among the distinguished attendees was Omilani Alarcon, Founder of Latinnegra and Afro Filipina, a trailblazing figure who has dedicated her life to celebrating and preserving the cultural diversity of the Filipino and Afro-Latin communities. Alarcon’s presence at the event served as a reminder of the importance of embracing one’s roots and heritage while fostering inclusivity and diversity.
Her commitment to cultural fusion and appreciation demonstrated that the Filipino-American community in South Florida stands not just for economic success but for cultural richness and understanding among all communities.
Faye Hanvivatpong: Building Bridges Through Business
The event was graced by the presence of Faye Hanvivatpong, the CEO of Ultimate Care Inc., a shining example of Filipino-American entrepreneurial success. Her dedication to business excellence and community engagement highlighted the role of Filipino-American entrepreneurs as bridges between cultures and communities.
Hanvivatpong’s success story underscored the chamber’s commitment to empowering its members to excel in their respective fields while giving back to the broader community.
Kuwento Comic: Empowering Women’s Voices
A remarkable highlight of the evening was the presence of Kuwento Comic, an all-Asian-woman team of writers and creatives who are making waves in the world of comics. Their inspiring story highlighted the importance of diversity and inclusivity in creative fields, and their work empowers the voices of Asian women in the world of storytelling.
A Bright Future Beckons
SFFACC’s inaugural event was a resounding success, a testament to the resilience, innovation, and entrepreneurial spirit of the Filipino-American community in South Florida. It celebrated not only business success but also cultural richness and unity. The event promised a future filled with remarkable achievements, opportunities, and cross-cultural collaborations.
As the South Florida Filipino American Chamber of Commerce looks ahead, it does so with the knowledge that its first event set a powerful precedent for what is to come. The night was not just an inauguration; it was a declaration of the Filipino-American community’s determination to thrive, prosper, and make a lasting impact on the South Florida landscape. With Mo Hasan’s inspirational words, Josie Smith Malave’s culinary artistry, Omilani Alarcon’s cultural celebration, Faye Hanvivatpong’s entrepreneurial excellence, and Lady Bautista’s visionary leadership, the future holds immense promise for SFFACC and the entire Filipino American community it represents.
Handout image of Hong Kong-based billionaire Calvin Lo
Hong Kong-based billionaire Calvin Lo poses for picture in this undated handout image obtained by Reuters on August 3, 2022. PR Superstar/Handout via REUTERS ATTENTION EDITORS – THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY. NO RESALES. NO ARCHIVES. MANDATORY CREDIT