This is the credit score you typically need to take out a mortgage

How to improve your credit scoreIf you’re interested in buying a home in the future, there are easy ways to increase your credit score and improve your chances of getting a mortgage at a good interest rate. Payment history makes up 35% of your FICO score, which is the most commonly used measure of creditworthiness. Next, pay attention to your credit utilization rate, which comprises 30% of your score. Credit utilization refers to the percentage of your total available credit that you are using a


How to improve your credit scoreIf you’re interested in buying a home in the future, there are easy ways to increase your credit score and improve your chances of getting a mortgage at a good interest rate. Payment history makes up 35% of your FICO score, which is the most commonly used measure of creditworthiness. Next, pay attention to your credit utilization rate, which comprises 30% of your score. Credit utilization refers to the percentage of your total available credit that you are using a
This is the credit score you typically need to take out a mortgage Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: alicia adamczyk
Keywords: news, cnbc, companies, payment, need, month, mortgage, score, utilization, improve, typically, credit, pay, keeping, bills, rate


This is the credit score you typically need to take out a mortgage

How to improve your credit score

If you’re interested in buying a home in the future, there are easy ways to increase your credit score and improve your chances of getting a mortgage at a good interest rate. First of all, pay all of your bills on time and in full. Payment history makes up 35% of your FICO score, which is the most commonly used measure of creditworthiness. Setting your bills on auto-pay and keeping tabs on your payment due date for each account will help ensure that you routinely make on-time payments. Next, pay attention to your credit utilization rate, which comprises 30% of your score. Experts recommend keeping it at 30% or less month to month. Credit utilization refers to the percentage of your total available credit that you are using at one time. If your credit card has a limit of $10,000 and you have a balance of $2,000, your credit utilization rate is 20%, for example.


Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: alicia adamczyk
Keywords: news, cnbc, companies, payment, need, month, mortgage, score, utilization, improve, typically, credit, pay, keeping, bills, rate


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Treasury yields continue comeback on the week after another report shows rising inflation

The yield on 10-year Treasury note hit a one-month high on Friday, on pace to post its biggest weekly gain since April after recent data showed hotter-than-expected inflation. The rate on the benchmark Treasury note, which moves inversely to price, rose to 2.1310%, the highest since June 11. “Another core inflation surprise… PPI drives in-range down trade,” Ian Lyngen, head of U.S. rates strategy at BMO, said in a note. The inflation number is “marginally bearish for the Treasury market and as


The yield on 10-year Treasury note hit a one-month high on Friday, on pace to post its biggest weekly gain since April after recent data showed hotter-than-expected inflation. The rate on the benchmark Treasury note, which moves inversely to price, rose to 2.1310%, the highest since June 11. “Another core inflation surprise… PPI drives in-range down trade,” Ian Lyngen, head of U.S. rates strategy at BMO, said in a note. The inflation number is “marginally bearish for the Treasury market and as
Treasury yields continue comeback on the week after another report shows rising inflation Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: yun li
Keywords: news, cnbc, companies, yields, continue, gain, treasury, comeback, month, inflation, yield, report, week, note, rate, rose, rising, price, ppi, shows


Treasury yields continue comeback on the week after another report shows rising inflation

The yield on 10-year Treasury note hit a one-month high on Friday, on pace to post its biggest weekly gain since April after recent data showed hotter-than-expected inflation.

The rate on the benchmark Treasury note, which moves inversely to price, rose to 2.1310%, the highest since June 11. The yield on the 30-year Treasury bond was also higher at around 2.6535%.

The U.S. consumer price index — a widely followed measure of inflation — rose more than expected last month, with the core CPI posting its biggest gain in one and a half years.

The Labor Department said on Friday its producer price index for final demand edged up 0.1% last month after a similar gain in May. Economists polled by Reuters had forecast the PPI unchanged in June.

“Another core inflation surprise… PPI drives in-range down trade,” Ian Lyngen, head of U.S. rates strategy at BMO, said in a note. The inflation number is “marginally bearish for the Treasury market and as yields come off this morning’s lows.”

The yield on the benchmark 10-year note had fallen below 2% this month on expectations global central banks would respond to a slowing global economy with more monetary stimulus. The rate started coming back after a blowout June jobs report boosted the confidence on the U.S. economy.

Wall Street rallied to a record high on Thursday, after testimony by Federal Reserve Chair Jerome Powell this week that signaled easier monetary policy could be implemented later this month.


Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: yun li
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Gold holds firm above $1,400 as markets look past robust US data

Spot gold rose 0.9% to $1,415.53 per ounce. U.S. gold futures rose 0.4% to settle at $1412.20 per ounce. “If gold closes below $1,400 level on a Friday, (it) could be a blow to the bulls. Fed policymakers are scheduled to meet on July 30-31, where investors will look for further cues on monetary policy easing. A recent import duty hike further dented waning interest in an Indian market hit by a surge in local rates


Spot gold rose 0.9% to $1,415.53 per ounce. U.S. gold futures rose 0.4% to settle at $1412.20 per ounce. “If gold closes below $1,400 level on a Friday, (it) could be a blow to the bulls. Fed policymakers are scheduled to meet on July 30-31, where investors will look for further cues on monetary policy easing. A recent import duty hike further dented waning interest in an Indian market hit by a surge in local rates
Gold holds firm above $1,400 as markets look past robust US data Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-12
Keywords: news, cnbc, companies, session, rates, data, holds, gold, 1400, past, rate, fed, look, rose, strongerthanexpected, policy, price, robust, firm, markets


Gold holds firm above $1,400 as markets look past robust US data

Gold prices rose on Friday as investors shrugged off concerns that stronger-than-expected consumer inflation in the United States could influence the U.S. central bank’s decision on aggressive monetary policy easing.

Spot gold rose 0.9% to $1,415.53 per ounce. U.S. gold futures rose 0.4% to settle at $1412.20 per ounce.

“Inflation data came out a little bit hotter than expected. It seems every day that the probability of rate cut versus keeping rates unchanged is flip-flap. There are uncertainties around that,” said Phillip Streible, senior commodities strategist at RJO Futures.

“If gold closes below $1,400 level on a Friday, (it) could be a blow to the bulls. I see a resistance level of $1,441 if there is enough demand for gold.”

The core U.S. consumer price index, excluding food and energy, rose 0.3% in June, data showed on Thursday, the largest increase since January 2018. The U.S. Federal Reserve had last month downgraded its inflation projection for the year to 1.5% from the 1.8% projected in March.

Bullion rates were quick to slump following the data, shedding nearly 1% in the latter part of its session, with the dollar erasing some losses.

However, the stronger-than-expected reading failed to shake convictions that the Fed will start cutting interest rates at a policy meeting later this month, with money markets still indicating one rate cut at the end of July and a cumulative 64 basis points in cuts by the end of 2019.

Against a basket of currencies, the dollar was lower for a third straight day, down 0.1%.

Market attention will be focused on comments by Chicago Fed President Charles Evans later in the session and New York Fed President John Williams on Monday, which will provide a chance to gauge how dovish the U.S. central bank will be.

Fed policymakers are scheduled to meet on July 30-31, where investors will look for further cues on monetary policy easing.

In the physical market, gold buying stalled in top Asian hubs this week as consumers sold back bullion to cash in on the steep price rally.

A recent import duty hike further dented waning interest in an Indian market hit by a surge in local rates


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Rate cut bets keeps dollar on track for biggest weekly drop in three weeks

Against a basket of other currencies, the dollar fell 0.1% to 96.94 and was on track for its biggest weekly drop in three weeks. The core U.S. consumer price index, excluding food and energy, rose 0.3% in June, the largest increase since January 2018, data on Thursday showed. Other currencies which benefited from a weaker dollar were in markets whose central banks signaled a relatively confident outlook to interest rates. Sweden’s crown also benefited from a relatively optimistic assessment of i


Against a basket of other currencies, the dollar fell 0.1% to 96.94 and was on track for its biggest weekly drop in three weeks. The core U.S. consumer price index, excluding food and energy, rose 0.3% in June, the largest increase since January 2018, data on Thursday showed. Other currencies which benefited from a weaker dollar were in markets whose central banks signaled a relatively confident outlook to interest rates. Sweden’s crown also benefited from a relatively optimistic assessment of i
Rate cut bets keeps dollar on track for biggest weekly drop in three weeks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-12
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Rate cut bets keeps dollar on track for biggest weekly drop in three weeks

The dollar fell for a third consecutive day on Friday as stronger-than-expected U.S. inflation data failed to shake convictions that the Federal Reserve will start cutting interest rates at a policy meeting later this month.

Against a basket of other currencies, the dollar fell 0.1% to 96.94 and was on track for its biggest weekly drop in three weeks.

The core U.S. consumer price index, excluding food and energy, rose 0.3% in June, the largest increase since January 2018, data on Thursday showed.

The reading pushed U.S. Treasury yields higher, but money markets still indicated one rate cut at the end of July and a cumulative 64 basis points in cuts by the end of 2019.

“Cutting interest rates when inflation data is weakening makes sense, but signalling a dovish stance when inflation is rising is a bit weird and suggests there are political pressures weighing on the Fed,” said Ulrich Leuchtmann, the head of currency research at Commerzbank.

The dollar’s weakness revived carry trades, where hedge funds borrow in low-yielding currencies such as the Swiss franc and the euro to purchase higher-yielding ones such as the Australian or New Zealand dollars.

On Friday, the NZ dollar gained 0.3% to $0.6665.

Other currencies which benefited from a weaker dollar were in markets whose central banks signaled a relatively confident outlook to interest rates.

The Canadian dollar was one such beneficiary: the loonie rallied to a 10-month high versus the U.S. dollar after Canada’s central bank said this week it had no intention of easing monetary policy even as it highlighted the risks that trade wars posed to the global economy.

Higher oil prices also helped the Canadian dollar.

Sweden’s crown also benefited from a relatively optimistic assessment of its economic outlook after minutes of the central bank’s policy meeting.

The euro trimmed earlier gains after European Central Bank Governing Council member Ignazio Visco said on Friday the ECB will need to adopt further expansionary measures if the euro zone economy does not pick up and will consider its options “in the coming weeks”.

The single currency was flat at $1.1258, below an intraday high of $1.1275 in early London trading.

Market attention will be focused on comments by Chicago Fed President Charles Evans later on Friday and New York Fed President John Williams on Monday which will provide a chance to gauge how dovish the U.S. central bank will be.

“If these Fed officials are not as dovish as (Federal Reserve Chair Jerome) Powell, and if the New York Fed’s manufacturing survey on Monday proves stronger than forecast, they could show that the dollar weakening in response to Powell’s congressional testimony was overdone,” said Masafumi Yamamoto, chief forex strategist at Mizuho Securities.

Powell indicated again on Thursday that an interest rate cut from the U.S. central bank is likely at its next meeting later this month as businesses slow investment due to trade disputes and a global growth slowdown.


Company: cnbc, Activity: cnbc, Date: 2019-07-12
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The Fed could be about to disappoint the market, warns Well Fargo Securities

“So, in our view, at least at Wells Fargo, we think the Fed is, in some strange way, going to disappoint the market by not [cutting] as much as it already anticipates.” But not everyone was on board with the idea of an imminent rate cut. “I don’t think he’s going to cut rates at the end of the month.” “If we do get a trade deal, … he’s going to have to totally reverse course and then he loses all credibility whatsoever. “So, I think he’s going to look at this situation very carefully.


“So, in our view, at least at Wells Fargo, we think the Fed is, in some strange way, going to disappoint the market by not [cutting] as much as it already anticipates.” But not everyone was on board with the idea of an imminent rate cut. “I don’t think he’s going to cut rates at the end of the month.” “If we do get a trade deal, … he’s going to have to totally reverse course and then he loses all credibility whatsoever. “So, I think he’s going to look at this situation very carefully.
The Fed could be about to disappoint the market, warns Well Fargo Securities Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: lizzy gurdus
Keywords: news, cnbc, companies, securities, schumacher, yields, fed, disappoint, warns, market, think, data, hes, trade, going, fargo, rate, cut


The Fed could be about to disappoint the market, warns Well Fargo Securities

Wall Street’s Fed frenzy might not turn out how investors expect.

That’s at least according to Michael Schumacher, global head of rate strategy and managing director at Wells Fargo Securities, who said investors may find themselves disappointed by the Fed’s next move.

Many on the Street expect the U.S. central bank to slash its benchmark interest rate at the next Federal Open Market Committee meeting in late July in response to weakening economic data domestically and around the globe. The CME’s FedWatch tool currently shows traders pricing in a 100% chance of a July cut.

But what the stock market is pricing in with regards to Fed policy might be too aggressive, Schumacher told CNBC’s “Futures Now” on Thursday.

“We think they’ll come in and do two moves, so 50 basis points total [worth of cuts]. The market’s priced for something like 65 or 70 basis points,” Schumacher said. “So, in our view, at least at Wells Fargo, we think the Fed is, in some strange way, going to disappoint the market by not [cutting] as much as it already anticipates.”

Schumacher’s remarks came as Fed Chair Jerome Powell delivered what the strategist saw as “very dovish” comments in a two-day testimony to Congress. In it, Powell said macroeconomic “crosscurrents” including trade tensions and global growth worries were weighing on U.S. economic activity, and that the central bank would “act as appropriate” in response.

“He wants to cut,” Schumacher said, adding that the constructive U.S. consumer price data that were released early Thursday didn’t change the view of the chairman, who had likely seen the data before his testimony.

And, if the Fed decides to go through with a cut, U.S. 10-year Treasury yields could also see some counterintuitive moves, said the strategist, whose year-end target for the 10-year yield is 2.30%. On Friday, it rose to 2.13%.

“We think, in sort of a perverse way, that yields actually go up,” he said Thursday. “Typically, you might say, ‘Well, hey, if the Fed is about to cut, shouldn’t you get a big rally in bonds?’ The answer is yes, but we’ve already had it. There’s been a tremendous rally since November. We think it’s about done.”

But not everyone was on board with the idea of an imminent rate cut.

“Nobody still has convinced me that [Powell]’s going to act, and I don’t think he’s going to,” Anthony Grisanti, founder and president of GRZ Energy, said in the same “Futures Now” segment. “I don’t think he’s going to cut rates at the end of the month.”

Grisanti, who has traded futures for decades, said that between the still-healthy U.S. economic data, the prospects for a U.S.-China trade deal and the pressure Powell has received from President Donald Trump, a cut still seems unlikely.

“If we do get a trade deal, … he’s going to have to totally reverse course and then he loses all credibility whatsoever. And I also think that if he cuts rates, he actually looks like he’s under Trump’s thumb,” the trader said. “So, I think he’s going to look at this situation very carefully. There’s a couple more data points that have to come out.”

U.S. Treasury yields hit a one-month high on Friday after June’s consumer price index topped expectations for inflation.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: lizzy gurdus
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Jeremy Siegel: Stocks could add another 5% onto record rally by year-end thanks to the Fed

After four 0.25% hikes last year, the target range for the fed funds overnight bank lending rate stands at 2.25% to 2.5%. The final Fed increase in borrowing costs in 2018 came in December when the stock market was melting down. At the shorter end of the bond yield curve, the 3-month Treasury rate has actually been higher than the 10-year. That so-called inverted yield curve, when shorter-term bonds deliver higher rates than longer-term ones, historically has signaled a recession on the horizon.


After four 0.25% hikes last year, the target range for the fed funds overnight bank lending rate stands at 2.25% to 2.5%. The final Fed increase in borrowing costs in 2018 came in December when the stock market was melting down. At the shorter end of the bond yield curve, the 3-month Treasury rate has actually been higher than the 10-year. That so-called inverted yield curve, when shorter-term bonds deliver higher rates than longer-term ones, historically has signaled a recession on the horizon.
Jeremy Siegel: Stocks could add another 5% onto record rally by year-end thanks to the Fed Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, add, higher, stocks, jeremy, stock, yield, rally, funds, yearend, week, rate, record, siegel, fed, thanks, market, curve


Jeremy Siegel: Stocks could add another 5% onto record rally by year-end thanks to the Fed

The stock market has been hitting all kinds of records this week, and Wharton School professor Jeremy Siegel told CNBC on Friday that he does not see that stopping anytime soon.

“I think fair market value does give us another 5% or 6% this year” on the S&P 500 with the Federal Reserve signalling interest rate cuts ahead, the longtime stock bull said on “Fast Money Halftime Report.”

“But we may go up 10% or 12% before we sell off,” Siegel added, noting the Fed tends to overshoot on both the downside and the upside when adjusting rates.

Fed Chairman Jerome Powell — who dropped rate-cut hints over two days of congressional economic testimony this week — has been widely criticized by Wall Street and President Donald Trump for hiking too aggressively.

After four 0.25% hikes last year, the target range for the fed funds overnight bank lending rate stands at 2.25% to 2.5%. The final Fed increase in borrowing costs in 2018 came in December when the stock market was melting down.

Siegel said he hopes the Fed cuts rates by a half percentage point at its upcoming July 30-31 meeting, though he acknowledges that such a bold move would be unlikely.

Around midday Friday, the CME FedWatch tracker was putting only about a 25% probability on a 0.5% reduction in the fed funds and much larger 75% odds on a 0.25% cut.

The reason Siegel would like to see a deeper cut is because he’s concerned about the fed funds rate being higher than the 10-year Treasury yield, which was around 2.1% on Friday.

At the shorter end of the bond yield curve, the 3-month Treasury rate has actually been higher than the 10-year.

That so-called inverted yield curve, when shorter-term bonds deliver higher rates than longer-term ones, historically has signaled a recession on the horizon.

“The biggest factor here is we really did see an inversion in that yield curve,” Siegel said. “I’ve gone through history, it is one of the most single reliable indicators of a recession. And I worry about that.”


Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: jessica bursztynsky
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Gold eases after surprise US CPI jump, holds above $1,400

U.S. gold futures for August delivery were up 0.26% to $1,408.8 per ounce. Gold prices had touched a one-week high of $1,426 earlier in the session. The U.S. Federal Reserve last month downgraded its inflation projection for 2019 to 1.5% from the 1.8% projected in March. Policymakers from the U.S. central bank are scheduled to meet on July 30-31, where investors will look for further cues on monetary policy easing. Indicative of investor sentiment, holdings of SPDR Gold Trust, the world’s larges


U.S. gold futures for August delivery were up 0.26% to $1,408.8 per ounce. Gold prices had touched a one-week high of $1,426 earlier in the session. The U.S. Federal Reserve last month downgraded its inflation projection for 2019 to 1.5% from the 1.8% projected in March. Policymakers from the U.S. central bank are scheduled to meet on July 30-31, where investors will look for further cues on monetary policy easing. Indicative of investor sentiment, holdings of SPDR Gold Trust, the world’s larges
Gold eases after surprise US CPI jump, holds above $1,400 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-11
Keywords: news, cnbc, companies, jump, rates, prices, rose, surprise, holds, inflation, gold, 1400, nearly, cpi, rate, ounce, bank, central, eases


Gold eases after surprise US CPI jump, holds above $1,400

Gold prices fell on Thursday, erasing gains made early in the day after stronger-than-expected consumer inflation in the United States cast doubts whether the U.S. central bank will cut interest rates as aggressively as expected.

Spot gold dipped 0.85% to $1,406.8 per ounce, dropping nearly $6 after U.S. consumer prices demonstrated a pick-up in underlying inflation, increasing in June by the most in nearly 1-1/2 years.

U.S. gold futures for August delivery were up 0.26% to $1,408.8 per ounce.

Gold prices had touched a one-week high of $1,426 earlier in the session.

The U.S. Federal Reserve last month downgraded its inflation projection for 2019 to 1.5% from the 1.8% projected in March. However, this may probably not change expectations the bank will cut interest rates this month.

“We saw todays inflation data – the markets started to back off today because it challenges the need for additional rate cuts,” said Chris Gaffney, president of world markets at TIAA Bank, calling bullion’s decline a knee-jerk reaction.

“(Thursday’s move) is just an adjustment of the fact that maybe it had gone up a little fast yesterday, but is still holding nicely above $1,400, and it looks like we going to continue holding above $1,400.”

Spot gold rose 1.5% on Wednesday after Fed Chair Jerome Powell’s dovish remarks, where he confirmed the U.S. economy was still under threat from disappointing factory activity, tame inflation and a simmering trade war, and said the Fed stood ready to “act as appropriate.”

This statement weighed on the dollar. The U.S. currency against major other currencies extended declines for a second session.

Policymakers from the U.S. central bank are scheduled to meet on July 30-31, where investors will look for further cues on monetary policy easing.

Gold rallied to a six-year peak of $1,438.63 an ounce last month, largely on the back of expectations of rate cuts by key central banks amid concerns over the global economy.

“A break above $1,438 may lead to further buying orders with $1,500 being the next level traders looking to target,” Hussein Sayed, chief market strategist at FXTM, wrote in a note.

Indicative of investor sentiment, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.8% on Wednesday.

Amongst other precious metals, palladium erased gains and dipped 1.4% to $1,567.01 per ounce, having earlier hit a high of $1,605.52.

Silver was down 0.1% to $15.22, while spot platinum gained 0.3% to $827.25 per ounce.


Company: cnbc, Activity: cnbc, Date: 2019-07-11
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Asia markets mostly rise as Fed’s Powell hints at rate cut ahead

Asia markets mostly rose on Thursday after U.S. Federal Reserve Chairman Jerome Powell signaled overnight that the U.S. central bank could be cutting interest rates soon. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.72%. The Nikkei 225 rose 0.51% to close at 21,643.53, while the Topix gained 0.47% to finish its trading day in Tokyo at 1,578.63. In South Korea, the Kospi added 1.06% to close at 2,080.58. On Thursday, South Korea announced that up to 300 billion won (approx.


Asia markets mostly rose on Thursday after U.S. Federal Reserve Chairman Jerome Powell signaled overnight that the U.S. central bank could be cutting interest rates soon. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.72%. The Nikkei 225 rose 0.51% to close at 21,643.53, while the Topix gained 0.47% to finish its trading day in Tokyo at 1,578.63. In South Korea, the Kospi added 1.06% to close at 2,080.58. On Thursday, South Korea announced that up to 300 billion won (approx.
Asia markets mostly rise as Fed’s Powell hints at rate cut ahead Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: eustance huang
Keywords: news, cnbc, companies, ahead, cut, close, powell, rise, south, feds, japan, day, hints, rate, shenzhen, seoul, korea, tokyo, rose, shares, asia, markets


Asia markets mostly rise as Fed's Powell hints at rate cut ahead

Asia markets mostly rose on Thursday after U.S. Federal Reserve Chairman Jerome Powell signaled overnight that the U.S. central bank could be cutting interest rates soon.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.72%.

Chinese stocks were mixed on the day. The Shanghai composite rose fractionally to 2,917.76, while the Shenzhen component declined 0.15% to 9,152.77 and the Shenzhen composite fell 0.125% to 1,548.93.Hong Kong’s Hang Seng index gained 0.75%, as of 3:15 p.m. HK/SIN.

The Nikkei 225 rose 0.51% to close at 21,643.53, while the Topix gained 0.47% to finish its trading day in Tokyo at 1,578.63. Shares of game maker Nintendo jumped 4.15% a day after the company announced a cheaper version of its Switch video game console.

In South Korea, the Kospi added 1.06% to close at 2,080.58.

Relations between Tokyo and Seoul remain frosty, with Japan saying last week it would tighten restrictions on exports of three materials used in smartphone displays and chips, over a dispute with Seoul on South Koreans being forced to work for Japanese firms during World War Two.

On Thursday, South Korea announced that up to 300 billion won (approx. $256 million) would be set aside to cope with Japan’s export curbs.

Shares of companies potentially affected by the export curbs, such as Samsung Electronics and SK Hynix, rose 1.43% and 3.57% respectively on Thursday.

Australia’s S&P/ASX 200 rose 0.39% to close at 6,716.10, as the sectors advanced. Banks were under the spotlight, with Australia’s corporate regulator threatening on Thursday to prosecute some of the country’s largest lenders over their sales of consumer insurance products in the past decade.


Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: eustance huang
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Dow jumps 160 points to break above 27,000 for the first time ever

The 30-stock average broke above 27,000 for the first time in its history, rising 168 points or 0.6%. Microsoft has been the best-performing Dow stock since the index’s first close above 26,000, surging around 50% in that time. “This week solidified the fact that the market doesn’t need, it doesn’t want, it’s demanding a rate cut from Powell,” said Jeff Kilburg, CEO of KKM Financial. The S&P 500 traded just above the flatline on Thursday and briefly broke back above 3,000 while the Nasdaq Compos


The 30-stock average broke above 27,000 for the first time in its history, rising 168 points or 0.6%. Microsoft has been the best-performing Dow stock since the index’s first close above 26,000, surging around 50% in that time. “This week solidified the fact that the market doesn’t need, it doesn’t want, it’s demanding a rate cut from Powell,” said Jeff Kilburg, CEO of KKM Financial. The S&P 500 traded just above the flatline on Thursday and briefly broke back above 3,000 while the Nasdaq Compos
Dow jumps 160 points to break above 27,000 for the first time ever Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: fred imbert, thomas franck
Keywords: news, cnbc, companies, 27000, cut, shares, rate, testimony, 160, break, broke, week, sp, powell, points, jumps, trade, dow


Dow jumps 160 points to break above 27,000 for the first time ever

The Dow Jones Industrial Average rallied to a record high on Thursday, led by UnitedHealth shares, after testimony by Federal Reserve Chair Jerome Powell this week that signaled easier monetary policy could be implemented later this month.

The 30-stock average broke above 27,000 for the first time in its history, rising 168 points or 0.6%. The Dow first closed above 26,000 in January of 2018 so it’s been a little more than a year-and-half trek between 1,000 point moves, with the gains largely driven by expectations the Fed will cut rates, insulating the market from a slowing economy and a trade battle with China.

Microsoft has been the best-performing Dow stock since the index’s first close above 26,000, surging around 50% in that time. Visa, Cisco Systems and Nike are also up sharply since then.

“This week solidified the fact that the market doesn’t need, it doesn’t want, it’s demanding a rate cut from Powell,” said Jeff Kilburg, CEO of KKM Financial. “I do have a little bit of caution going into the earnings season because we have some forward-guidance uncertainty with the trade tensions, but the wind in the sails continues to be that dovish stance from Powell.”

The S&P 500 traded just above the flatline on Thursday and briefly broke back above 3,000 while the Nasdaq Composite slipped 0.2%. The S&P 500 first broke above 3,000 on Wednesday.

UnitedHealth shares surged more than 5% after the White House dropped a proposal to eliminate drug rebates. CVS Health and Cigna also jumped on the news, gaining 4.3% and 8%, respectively.

Delta Air Lines rose 1.3% on better-than-expected earnings.

In testimony to the House Financial Services Committee on Wednesday, Powell said business investments across the U.S. have slowed “notably” recently as uncertainties over the economic outlook linger. As a result, expectations of an upcoming rate cut grew.


Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: fred imbert, thomas franck
Keywords: news, cnbc, companies, 27000, cut, shares, rate, testimony, 160, break, broke, week, sp, powell, points, jumps, trade, dow


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The Fed ‘put’ could insulate stocks from trade wars, send the Dow to 28,000

The thinking is that there is a ‘Fed put’ on the stock market, meaning with the Fed ready to cut interest rates, how much downside could there be for the market? Fed Chair Jerome Powell’s dovish comments this week sparked a stock market rally Wednesday and part of Thursday, driving the three major indices to new highs. Economists widely expect the Fed to cut interest rates at its July meeting by at least 25 basis points, or a quarter point. Highly indebted companies, including many smaller firms


The thinking is that there is a ‘Fed put’ on the stock market, meaning with the Fed ready to cut interest rates, how much downside could there be for the market? Fed Chair Jerome Powell’s dovish comments this week sparked a stock market rally Wednesday and part of Thursday, driving the three major indices to new highs. Economists widely expect the Fed to cut interest rates at its July meeting by at least 25 basis points, or a quarter point. Highly indebted companies, including many smaller firms
The Fed ‘put’ could insulate stocks from trade wars, send the Dow to 28,000 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: patti domm
Keywords: news, cnbc, companies, 28000, market, wars, rate, interest, send, stock, earnings, rates, fed, quarter, insulate, stocks, trade, dow


The Fed 'put' could insulate stocks from trade wars, send the Dow to 28,000

Traders work on the floor at the New York Stock Exchange. Brendan McDermid | Reuters

With a potentially negative earnings season looming, investors see easy Fed policy as the security blanket the stock market needs as it breaks to new highs. The thinking is that there is a ‘Fed put’ on the stock market, meaning with the Fed ready to cut interest rates, how much downside could there be for the market? But that question gets trickier with the stock market carving out new highs, and an upcoming earnings season that is forecast to see profits decline. The Fed “is the factor,” said Michael Farr of Farr, Miller & Washington. “If you don’t have organic earnings growth and improving balance sheets, what else is going to drive prices?” Fed Chair Jerome Powell’s dovish comments this week sparked a stock market rally Wednesday and part of Thursday, driving the three major indices to new highs. Stocks were off their highs Thursday afternoon, after indices briefly breached big round milestones. The S&P 500 rose above 3,000 for the first time ever Wednesday, and the Dow topped 27,000 Thursday. Many Wall Street analysts have their year end targets set around 3,000 or below, and the average target of analysts surveyed by CNBC is 2,950.

Economists widely expect the Fed to cut interest rates at its July meeting by at least 25 basis points, or a quarter point. The fed funds target rate range is currently 2.25% to 2.50%. Investors in the fed fund futures market are pricing in a little more than a full quarter point cut for July, but nearly three 25 basis point cuts by the end of the year. “My thought is if rates don’t fall, stock prices will,” said Sam Stovall, chief investment strategist at CFRA. If the Fed does not take action to cut interest rates at at its next meeting, on July 31, Stovall said the market could head for a correction pretty quickly. Stocks have been rising ahead of the Fed’s expected action, and history shows they could keep on rising once the Fed starts the rate-cutting cycle. Stovall said the S&P 500, since World War II, has risen 10.3% on average in the six months after the Fed starts cutting rates, and then 14% by the end of the first year. Beyond the Fed, strategists said the stock market needs to see steady economic data and the trade war to be resolved between the U.S. and China to make a big leap forward. “I think the market is trying to decipher now how many rate cuts and how much and whether the first one will be an important inoculation. Clearly the Fed sees the global slowdown coupled with uncertainty with the tariffs as a significant downside risk,” said Quincy Krosby, chief market strategist at Prudential Financial. Net benefits to stocks from lower interest rates could be a weaker dollar, which would filter through as a positive to the earnings of S&P 500 companies with overseas sales. Highly indebted companies, including many smaller firms, would also see a lift from lower interest rates. “If the Fed is here and the tariff issues are resolved, the markets can continue moving higher. There is no doubt there will be pullbacks. But nonetheless, the Fed will help…It will weaken the dollar. It will be helpful for all markets. It will be helpful for emerging markets. It will be helpful for the Chinese. And U.S. exporters,” said Krosby. “Right now for the market, if they’re going to lower rates and there’s no further deterioration in the economy, that is the best back drop for markets.”

But the roll out of corporate earnings next week could be a challenge. Stovall said S&P 500 earnings are collectively expected to decline 1.7% for the second quarter, after rising 2.5% in the first quarter. Earnings are key to the way the market values stocks, and with the earnings season starting next week, bad news could come out not only in the second quarter reports but in forecasts. Companies could certainly be glum as they detail the impact of tariffs, global weakness and even dollar strength on their bottom lines.

Rate-cutting cycles and stocks

Industrial supply company, Fastenal, for instance, reported Thursday that it was able to raise prices to offset tariffs on products sourced from China, but the increases were not enough to offset rising costs. But analysts expect like last quarter, companies have guided too low on their profit outlooks, and earnings may surprise to the upside. “On the whole, given the fact that earnings expectations are so subdued, it’s not likely to be an aggregate market negative,” said Julian Emanuel, chief equity and derivative strategist at BTIG. “It’s going to be an environment, where it’s good for some stocks, bad for others.” On top of that, the Fed’s rate cutting can only help a market that has already run up ahead of the Fed’s action.

Emanuel said cyclical parts of the market could benefit more from lower interest rates, including energy and financials. The Fed had been criticized for its last rate hike in December, when stocks sold off, the outlook for growth began to fade and trade wars weighed on business confidence. But the Fed paused its rate hikes early in the year, and began in earnest to make the shift toward an easier policy when trade friction between the U.S. and China heated up in May. Big moves have already been seen in the real rates market. Treasury yields, which move opposite bond prices, have dropped dramatically. The benchmark 10-year Treasury yield went from a 2019 high of 2.799% to a low of 1.93%. It was at 2.12% Thursday. That yield influences mortgages and other lending rates. Just the recent rise in long term rates, shows that the market believes the Fed will succeed in fending off a recession, Emanuel said. “If you look at the entire year, the fact that the Fed pivoted as it did on Jan. 4 to be on balance supportive of the market, it’s very important,” said Emanuel. “And it’s all the more important given the developing expectation there is no quick fix for the trade war and the whole idea that earnings growth is subdued.”

What about global economy?


Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: patti domm
Keywords: news, cnbc, companies, 28000, market, wars, rate, interest, send, stock, earnings, rates, fed, quarter, insulate, stocks, trade, dow


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