Stock market news live updates: Stocks rise as traders shake off inflation concerns

Stocks rose on Wednesday as buyers at the very least briefly put aside concerns over rising inflation.

Each of the S&P 500, Dow and Nasdaq opened increased on Wednesday, reversing course after a uneven session a day earlier finally ended with the key indexes within the pink. 

Investors this week have continued to ponder prospects that increased inflation throughout the post-pandemic restoration will finally curb the extent of the rebound in financial exercise and rally in inventory costs. New data Tuesday showed consumer confidence dipped in April even as extra social distancing requirements have been lifted, with the decline coming partially as shoppers took word of rising value pressures. 

“I do think we’ve been in this consolidation phase, really since early April. That’s when we started a new phase in this market cycle, the first one [was] that recovery in stay-at-home stocks from March to November last year, the second phase was the reopening phase from November to March,” Gabriela Santos, world market strategist at JPMorgan Asset Management, instructed Yahoo Finance. “Now we’re moving beyond the recovery and focusing on the expansion up ahead. And we haven’t had a lot of new data on this recently, so it makes sense to see stocks consolidate.”

“What we’ll start to see over the next few months is for growth to peak and then slowly moderate,” she added. “That’s still a constructive backdrop for stocks. It’s just that the actual sector selection, company selection becomes a lot more important. And the focus is increasingly on inflation rather than real growth, and ways to hedge upside risks to inflation in this new cycle.”

But at the very least as it pertains to financial coverage, a short-lived soar in inflation wouldn’t spur the Federal Reserve to right away wind down its crisis-era assist, quite a few U.S. central financial institution officers lately reassured market contributors. On Tuesday, Federal Reserve Vice Chair Richard Clarida told Yahoo Finance that “there will come a time in upcoming meetings” when the central financial institution would discuss scaling back asset purchases, however that “it is going to depend on the flow of data” – reaffirming the Fed shouldn’t be on a set timeline when it got here to rolling again insurance policies which have supported the financial restoration and asset costs.

Stocks traded choppily as buyers weighed these and different Fed feedback towards a blended batch of financial information, which has provided unclear indicators as as to whether buyers want be instantly disquieted by inflationary pressures. But as many strategists have mentioned, the rise in inflation and finally in rates of interest will likely be an inevitable a part of the restoration. 

“You’re fighting the Fed actually if you think inflation’s going to get lower than that,” Greg Staples, head of fixed income North America at DWS Group, told Yahoo Finance, referring to the Fed’s stated goal of letting inflation run moderately above 2%. “[Fed Chair Jerome Powell] is really going to do everything he possibly can to stimulate it. And when the economy is overheating, you’re talking about potentially 6% growth in the first quarter, maybe 10% growth in the second quarter. We’ve got a lot of momentum here.”

“He’s continuing to add stimulus on the monetary side, and then with Congress and the infrastructure plan on the fiscal side,” he added. “So we think everything’s on a go for continued growth. And ultimately, that’s going to lead to stable more stable and systemic higher inflation, which will ultimately lead to higher rates.”

9:40 a.m. ET: Dick’s Sporting Goods shares jump 11% after company posts record quarterly earnings, raises guidance

Shares of Dick’s Sporting Goods (DKS) jumped more than 11% after the company posted record first-quarter profit, with a surge in consumer spending and demand for in-person, outdoor activities driving strong results at the retailer. 

First-quarter net sales rose 119% over last year and 52% over the same period in 2019 to reach $2.92 billion. These sales results drove first-quarter adjusted earnings per share to $3.41, far exceeding estimates for $1.15. The company also raised its full-year earnings per share outlook to between $7.05 and $7.68 on an unadjusted basis, sharply increasing this guidance from the $3.81 to $4.55 per share seen previously. 

“The strength of our diverse category portfolio, supply chain, technology capabilities and omni-channel execution helped us continue to capitalize on strong consumer demand across golf, outdoor activities, home fitness and active lifestyle. We also saw a resurgence in our team sports business as kids began to get back out on the field after a year in which many youth sports activities were delayed or cancelled,” Lauren Hobart, Dick’s Sporting Goods president and CEO, said in a press statement. “Looking ahead, we remain very enthusiastic about our business and are pleased to increase our full year sales and earnings outlook.”

9:31 a.m. ET: Stocks open higher

Here’s where markets were trading as of 9:31 a.m. ET: 

  • S&P 500 (^GSPC): +6.86 (+0.16%) to 4,194.99

  • Dow (^DJI):+64.42 (+0.19%) to 34,376.88

  • Nasdaq (^IXIC): +47.97 (+0.38%) to 13,708.75

  • Crude (CL=F): -$0.67 (-1%) to $65.40 a barrel

  • Gold (GC=F): +$5.50 (+0.29%) to $1,903.50 per ounce

  • 10-year Treasury (^TNX): +0.5 bps to yield 1.569%

8:41 a.m. ET: Amazon agrees to purchase MGM in $8.45 billion deal

Amazon (AMZN) announced Wednesday that it has agreed to purchase the Hollywood studio MGM Holdings for $8.45 billion, confirming days of media reports over the potential deal. The purchase is set to help bolster Amazon’s streaming business as a competitor to other major players in the space like Netflix (NFLX) and Disney (DIS). MGM’s library includes films such as the “James Bond” series, “Silence of the Lambs,” and “The Pink Panther,” as well as shows including “The Handmaid’s Tale.”

“The real financial value behind this deal is the treasure trove of IP in the deep catalog that we plan to reimagine and develop together with MGM’s talented team,” Mike Hopkins, senior vice president of Prime Video and Amazon Studios. “It’s very exciting and provides so many opportunities for high-quality storytelling.”

Shares of Amazon have been up 0.7% in early buying and selling following the announcement. 

8:32 a.m. ET: Mortgage functions declined 4.2% final week, with homebuyers held again by ‘lack of houses on the market and quickly rising house costs’: MBA 

Mortgage functions slid by essentially the most since early April final week, with a decline in refinances dragging down total mortgage volumes even as purchases ticked up for an additional week.

The Mortgage Bankers Association’s (MBA) weekly market composite index for mortgage functions fell 4.2% throughout the week ended May 21. This adopted a 1.2% rise throughout the prior week. The drop got here as refinances fell by 7% week-on-week, bringing refinance quantity down 9% from the identical week final 12 months. Purchases, nevertheless, have been up 1% week-on-week on an unadjusted foundation, although buy functions have been down 4% from the identical week final 12 months. 

“Mortgage applications decreased last week as mortgage rates increased to 3.18%,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a press statement. “While purchase activity was around 4% lower than a year ago, the comparison is to last spring’s large upswing in activity as pandemic-related lockdowns lifted. Demand is robust throughout the country, but homebuyers continue to be held back by the lack of homes for sale and rapidly increasing home prices.”

7:21 a.m. ET: Wednesday: Stock futures prolong in a single day good points, look to reverse Tuesday’s losses

Here’s the place markets have been buying and selling Wednesday morning:

  • S&P 500 futures (ES=F): 4,199.00, +13.5 factors (+0.32%)

  • Dow futures (YM=F): 34,358.00, +87 factors (+0.25%)

  • Nasdaq futures (NQ=F): 13,706.50, +50.25 factors (+0.37%)

  • Crude (CL=F): -$0.13 (-0.2%) to $65.94 a barrel

  • Gold (GC=F): +$10.30 (+0.54%) to $1,908.30 per ounce

  • 10-year Treasury (^TNX): +0.5 bps to yield 1.569%

6:17 p.m. ET Tuesday: Stock futures advance

Here’s the place markets have been buying and selling Tuesday night: 

  • S&P 500 futures (ES=F): 4,189.00, +3.5 factors (+0.08%)

  • Dow futures (YM=F): 34,301.00, +30.00 factors (+0.09%)

  • Nasdaq futures (NQ=F): 13,668.50, +12.25 factors (+0.09%)

NEW YORK, NEW YORK – MAY 11: People stroll by the New York Stock Exchange after world shares fell as concerns mount that rising inflation will immediate central banks to tighten financial coverage on May 11, 2021 in New York City. By mid afternoon the tech-heavy Nasdaq Composite had misplaced 0.6% after falling 2.2% at its session low. (Photo by Spencer Platt/Getty Images)

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

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