Category: Main News

(C) REUTERS

By Ann Saphir and Howard Schneider

(Reuters) -A virtual event with Federal Reserve Governor Christopher Waller was canceled on Thursday after the Zoom video conference was “hijacked” by a participant who displayed pornographic images.

“We were a victim of a teleconference or Zoom hijacking and we are trying to understand what we need to do going forward to prevent this from ever happening again. It is an incident we deeply regret,” said Brent Tjarks, executive director of the Mid-Size Bank Coalition of America (MBCA), which hosted the event via a Zoom link. “We have had various programs and this is something that we have never had happen to us.”

He said that he suspects one of the security switches that mutes those watching an event was set incorrectly, but he was not sure of the details. The decision to cancel was made in consultation with the Fed after the intrusion.

A few minutes before the event was to start, one participant using the screen name “Dan” began displaying graphic, pornographic images, according to a Reuters reporter on the call.

Microphones and video were not muted by the organizer upon joining.

More than 220 participants were on the Zoom call at one point before it was terminated.

“We have been deeply upset to hear about these types of incidents, and Zoom strongly condemns such behavior,” Zoom spokesman Matt Nagel said in a statement. “We take meeting disruptions extremely seriously and, where appropriate, we work closely with law enforcement authorities.”

The use of Zoom mushroomed during the COVID-19 pandemic. The service has come under fire over privacy and security issues, including incidents of “Zoom bombing” in which uninvited users entered and disrupted meetings.

In March 2020, the Federal Bureau of Investigation’s Boston office issued a warning about Zoom, telling users not to make meetings on the site public or share links widely after it received two reports of unidentified individuals invading school sessions.

In response to the disruptions, Zoom introduced major upgrades, including end-to-end encryption for video calls.

The Fed said the event, which was to feature a speech by Waller as well as a question-and-answer session, was canceled due to “technical difficulties.”

Fed events are typically highly choreographed and security is usually tight.

MBCA’s roughly 100 members include banks with between $10 billion and $100 billion in assets.

(C) Reuters. FILE PHOTO: People are reflected on a glass in front of a large screen showing stock prices at the Tokyo Stock Exchange after market opens in Tokyo, Japan October 2, 2020. REUTERS/Kim Kyung-Hoon

By Lawrence Delevingne and Marc Jones

(Reuters) -Wall Street stocks reversed losses to end higher on Thursday, and U.S. government bond yields tempered gains, as investors digested strong economic data and signals of a measured interest rate approach from the Federal Reserve.

U.S. jobless claims numbers fell, while Atlanta Fed President Raphael Bostic said that he favored “slow and steady” quarter-point U.S. rate increases to limit risk to the economy.

That helped Wall Street stocks rebound from an initial decline. The Dow Jones Industrial Average rose around 1%, boosted by Salesforce (NYSE:CRM) Inc, whose shares jumped about 11.5% after the cloud-based software provider gave an upbeat full-year profit forecast and doubled its share repurchase program.

The S&P 500 and Nasdaq Composite both gained around 0.75%, even as Tesla (NASDAQ:TSLA) Inc fell nearly 6% after the company did not unveil a much-awaited small, affordable electric vehicle.

After initially sagging, European shares rose 0.5, even as euro zone inflation numbers justified what is widely expected to be another 50 basis-point hike in the European Central Bank’s already decade-high rates this month.

Consumer price inflation in the 20 countries sharing the euro currency barely eased to 8.5% in February from 8.6% in January on lower energy prices, above the 8.2% economists polled by Reuters had expected.

MSCI’s broadest index of world shares gained 0.37%.

Stock and bond markets in recent weeks have been driven by different factors, said Kevin Gardiner, global investment strategist at Rothschild & Co. The chief concern in stocks is the expectation of pressured corporate profits, while bonds are sensitive to inflation and rate expectations.

“The economic impact of tightening remains a puzzle. Profitability might not be that fragile, at least, not yet,” he said.

Overnight, both benchmark government bonds and shares had taken a blow, as inflation indicators from Germany and the United States reinforced expectations interest rates would go higher and stay there for longer.

Germany’s 2-year government bond yield rose to its highest since October 2008.

In the United States, manufacturing activity contracted for a fourth straight month in February, but a gauge of prices for raw materials increased last month, stoking concerns that inflation would remain stubborn.

“Economic data has surprised to the upside,” said Steven Oh, global head of credit and fixed income at PineBridge Investments. Any unexpected result in the data would drive policymakers to be more aggressive, and that has reset market expectations, he said.

PRESSURE POINTS

U.S. government bond yields marched higher. Benchmark 10-year Treasury yields were near a four-month high at 4.066%, while two-year yields also advanced to 4.889%, around a fresh 16-year high.

Fed funds futures tied to the Fed’s policy rate see about an even chance that the rate will range from 5.5%-5.75% by September, from the current range of 4.5%-4.75%.

“We expect interest rates to stay higher for longer, and we expect stock market volatility ahead,” strategists at the Wells Fargo (NYSE:WFC) Investment Institute wrote on Thursday, adding that stronger-than-expected economic data this winter pushed their recession outlook into the second half of 2023.

DOLLAR REBOUND CONTINUES

In currency markets, the U.S. dollar index, measuring its value against a basket of major peers, gained nearly 0.5% to $104.968. The index is now up about 1.4% for the year, but still down from a September high around $114.

The euro lost 0.65% and the pound dropped 0.67%, with hotter-than-expected inflation numbers adding pressure on the ECB to raise rates.

In the crypto world, shares of Silvergate Capital (NYSE:SI) plunged 57% after the cryptocurrency-focused bank said it was delaying its annual report and evaluating its ability to operate as a going concern. Bitcoin was last down about 0.5% at $23,461.

Oil prices ticked up, boosted by signs of a strong economic rebound in top crude importer China and easing worries of aggressive U.S. rate hikes. U.S. crude rose 0.32% to $77.94 per barrel and Brent was at $84.50, up 0.23% on the day.

Spot gold was slightly lower at $1,836 per ounce. [GOL/]

(C) Reuters

By Liz Moyer

Investing.com — Stocks staged a rally despite earlier data on initial jobless claims that stoked fears about interest rates staying higher for longer.

Initial jobless claims fell last week and were below 200,000 again, evidence of a still-tight labor market despite thousands of layoffs in big tech in the last few months. That combined with hotter-than-expected inflation data only adds to the Federal Reserve’s conviction that its work to tame inflation isn’t close to being finished.

Investors are expecting the Fed to raise rates again when it meets this month and again in May, and some Fed officials have said in recent days that they believe rates need to move higher. Futures traders see the benchmark rising above 5.25% by late summer.

Big retailers have reported somewhat mixed results. Lowe’s (NYSE:LOW) sees still-softening demand for home improvement projects, while Dollar Tree (NASDAQ:DLTR) is seeing an influx of higher-income shoppers seeking bargains.

Next week, investors will get data on jobs for February, both from private payroll firm ADP and from the government on Friday, March 10. Fed Chair Jerome Powell is also scheduled for his periodic testimony before the Joint Economic Committee on Capitol Hill on Tuesday.

Here are three things that could affect markets tomorrow:

1. Services PMI

The ISM non-manufacturing PMI for February is due out at 10:00 ET (15:00 GMT). Analysts expect a reading of 54.5, which is slightly lower than the 55.2 reported for January.

2. Fed speakers

An array of Fed officials are scheduled to speak at various times tomorrow, including Dallas Fed President Lori Logan, Atlanta Fed President Raphael Bostic, Fed Gov. Michelle Bowman, and Richmond Fed President Tom Barkin.

3. Hibbett earnings

Retailer Hibbett Sports (NASDAQ:HIBB) is expected to report earnings per share of $3 on revenue of $482.6 million.

(C) Reuters.

By Yasin Ebrahim

Investing.com — The S&P 500 rallied after paring losses Thursday as Treasury yields eased from session highs after Atlanta Federal Reserve president Raphael Bostic ruled out backing a return to more aggressive Fed rate hikes and said the central bank pause by mid-to-late summer.

The S&P 500 rose 0.11%, the Dow Jones Industrial Average gained 0.57%, or 186 points, and the Nasdaq Composite was down 0.1%.

“Right now, I’m still very firmly in the quarter-point move camp,” Bostic said, in a roundtable with reporters on Thursday.

The remarks eased worries that the fed could be forced to revert to more aggressive 50 basis point rate hikes following strong economic data.

Data showing a jump in labor costs in the fourth quarter and fewer than expected initial jobless claims pushed the 10-Year and 2-Year Treasury yields to levels not seen in more than a decade.

“Whatever the reason that jobless claims have remained subdued, the bottom line is that labor supply is not increasing in any meaningful way, and there is no evidence that this will change any time soon,” Jefferies said in a note.

The strong data and hawkish remarks from several Fed members earlier this week have forced some on Wall Street to price in more aggressive Fed rate hikes and lower earnings.

Wells Fargo pushed back its call on recession and now expects an economic downturn in the second half of the year, and said it expects interest rates to stay higher for longer.

“We’ve reduced our year-end 2023 target for the S&P 500 Index and raised our target range for the federal funds rate to 5.25% to 5.5%,” it added.

Financials were the biggest drag on the market, with regional banks leading to the downside despite a surge in yields, which tends to boost margins on lending.

Principal Financial (NASDAQ:PFG), Signature Bank (NASDAQ:SBNY), and Zions Bancorporation (NASDAQ:ZION) were among the biggest losers on the day.

Cryptocurrency bank Silvergate Capital Corp (NYSE:SI), meanwhile, extended losses after plunging 55% after delaying its annual report and raised concerns about its ability to survive following the impact of the collapse of FTX and the slump in the crypto market.

Utilities and consumer staples were among the top gainers on the day, with the latter also helped by a 5% jump in grocery chain Kroger.

Kroger (NYSE:KR) reported better-than-expected guidance that overshadowed mixed fourth-quarter results as revenue fell short of Wall Street estimates.

Macy’s (NYSE:M), meanwhile, reported quarterly earnings that beat expectations, sending the department store chain’s shares more than 10% higher.

“We were encouraged to see the well-controlled inventory balance entering the year, and believe that strong momentum and clean stocks suggest an opportunity for Macy’s to generate a healthier profit than peers for the year,” Goldman Sachs said in a note.

Salesforce (NYSE:CRM) surged more than 12% after reporting fourth-quarter results and guidance that topped Wall Street estimates and that “will silence the doubters,” Wedbush said amid ongoing activist investor interest in the cloud-based software company.

Advanced Micro Devices (NASDAQ:AMD), meanwhile, climbed 2% on reports that activist investor Dan Loeb’s Third Point had taken a passive stake in the chipmaker.

In other news, Tesla (NASDAQ:TSLA) detailed plans to lower costs at its investor day on Wednesday, but failed to provide an update on plans to launch a more affordable electric car, sending its shares more than 6% lower.

“[W]e believe many investors were hoping for more specifics on when a third generation vehicle could be shipping, and therefore the lack of clarity beyond the comment that they’re working as fast as they can and it could be in the next couple of years is likely to be viewed as a disappointment to some,” Goldman Sachs said in a note.

(C) Reuters. FILE PHOTO: A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., February 17, 2023. REUTERS/Brendan McDermid

By Chuck Mikolajczak

NEW YORK (Reuters) – U.S. stocks rallied on Thursday, as Treasury yields pulled back from earlier highs following comments from Atlanta Federal Reserve President Raphael Bostic about his favored path of interest rate hikes for the central bank.

In an argument for quarter-point hikes, Bostic said he favored “slow and steady” as the appropriate course of action for the Fed, as the impact of higher interest rates may only start to be felt in the spring.

The yield on 10-year Treasury notes had earlier touched a fresh four-month high of 4.091% after data showed the number of Americans filing new unemployment claims fell again last week, indicating continued strength in the labor market, while a separate report showed U.S. labor costs grew faster than initially thought in the fourth quarter. The 10-year yield was last up 6.7 basis points to 4.064%.

The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down 0.4 basis points at 4.885% after earlier touching a fresh 15-year high at 4.944%.

“Bostic has been a little bit more hawkish so the fact that he basically said 25 was comforting because he has been on the hawkish end of hawkish people,” said Rhys Williams, chief strategist at Spouting Rock Asset Management in Bryn Mawr, Pennsylvania.

“The Fed is not crazy, they understand monetary policy works with a lag, so you are just starting to see now the impact of the first rate hikes, let alone the other 400 basis points they did.”

(Graphic: US jobs – https://www.reuters.com/graphics/GLOBAL-MARKETS/THEMES/znpnbxnkepl/US_jobs.jpg)

The Dow Jones Industrial Average rose 341.73 points, or 1.05%, to 33,003.57, the S&P 500 gained 29.96 points, or 0.76%, to 3,981.35 and the Nasdaq Composite added 83.50 points, or 0.73%, to 11,462.98.

Fed funds futures tied to the Fed’s policy rate see about an even chance that the rate will get to a range of 5.5%-5.75% by September, from the current range of 4.5%-4.75%.

At the closing bell, Fed Governor Christopher Waller said a string of “hot” data may force the U.S. central bank to raise rates higher than the 5.1%-5.4% range projected by the majority of Federal Reserve policymakers as recently as December.

Monthly payrolls and consumer prices data in the coming days will offer investors more clues on how aggressive the central bank may be heading into the Fed’s March 21-22 meeting, where it is currently expected to raise rates by 25 basis points.

The S&P 500 was trading just above its 200-day moving average of about 3,940, seen as a key support level by traders, after briefly falling below it for the first time since Jan. 25 earlier in the session.

Salesforce (NYSE:CRM) Inc soared 11.50% to notch its biggest one-day percentage gain since August 2020, after the cloud-based software firm forecast first-quarter revenue above analysts’ estimates and doubled its share buyback to $20 billion.

Tesla (NASDAQ:TSLA) Inc fell 5.85% after Chief Executive Elon Musk and team’s four-hour presentation failed to impress investors with few details on its plan to unveil an affordable electric vehicle.

Macy’s Inc (NYSE:M) jumped 11.11% after the department store operator forecast full-year profit above Wall Street estimates,

Silvergate Capital (NYSE:SI) plunged 57.72% after the crypto-focused lender delayed its annual report and said it was evaluating its ability to operate as a going concern.

Volume on U.S. exchanges was 11.15 billion shares, compared with the 11.46 billion average for the full session over the last 20 trading days.

Advancing issues outnumbered declining ones on the NYSE by a 1.19-to-1 ratio; on Nasdaq, a 1.10-to-1 ratio favored advancers.

The S&P 500 posted 10 new 52-week highs and 13 new lows; the Nasdaq Composite recorded 80 new highs and 153 new lows.

(C) Reuters

By Yasin Ebrahim

Investing.com — The Dow rallied Thursday, after Atlanta Federal Reserve President Raphael Bostic ruled out support for a return to aggressive Fed rate increases and touted a pause on hikes by the summer.

The Dow Jones Industrial Average gained 1%, or 341 points, the S&P 500 rose 0.76%, and the Nasdaq Composite was up 0.73%.

“Right now, I’m still very firmly in the quarter-point move camp,” Bostic said, in a roundtable with reporters on Thursday.

The remarks eased worries that the fed could be forced to revert to more aggressive 50 basis point rate hikes following strong economic data.

Data showing a jump in labor costs in the fourth quarter and fewer than expected initial jobless claims pushed the 10-Year and 2-Year Treasury yields to levels not seen in more than a decade.

“Whatever the reason that jobless claims have remained subdued, the bottom line is that labor supply is not increasing in any meaningful way, and there is no evidence that this will change any time soon,” Jefferies said in a note.

The strong data and hawkish remarks from several Fed members earlier this week have forced some on Wall Street to price in more aggressive Fed rate hikes and lower earnings.

Wells Fargo pushed back its call on recession and now expects an economic downturn in the second half of the year, and said it expects interest rates to stay higher for longer.

“We’ve reduced our year-end 2023 target for the S&P 500 Index and raised our target range for the federal funds rate to 5.25% to 5.5%,” it added.

Financials were the biggest drag on the market, with regional banks leading to the downside despite a surge in yields, which tends to boost margins on lending.

Principal Financial (NASDAQ:PFG), Signature Bank (NASDAQ:SBNY), and Zions Bancorporation (NASDAQ:ZION) were among the biggest losers on the day.

Cryptocurrency bank Silvergate Capital Corp (NYSE:SI), meanwhile, extended losses after plunging 58% after delaying its annual report and raised concerns about its ability to survive following the impact of the collapse of FTX and the slump in the crypto market.

Utilities and consumer staples were among the top gainers on the day, with the latter also helped by a 5% jump in grocery chain Kroger.

Kroger (NYSE:KR) reported better-than-expected guidance that overshadowed mixed fourth-quarter results as revenue fell short of Wall Street estimates.

Macy’s (NYSE:M), meanwhile, reported quarterly earnings that beat expectations, sending the department store chain’s shares 11% higher.

“We were encouraged to see the well-controlled inventory balance entering the year, and believe that strong momentum and clean stocks suggest an opportunity for Macy’s to generate a healthier profit than peers for the year,” Goldman Sachs said in a note.

Salesforce (NYSE:CRM) surged more than 11% after reporting fourth-quarter results and guidance that topped Wall Street estimates and that “will silence the doubters,” Wedbush said amid ongoing activist investor interest in the cloud-based software company.

Advanced Micro Devices (NASDAQ:AMD), meanwhile, climbed nearly 3% on reports that activist investor Dan Loeb’s Third Point had taken a passive stake in the chipmaker.

In other news, Tesla (NASDAQ:TSLA) detailed plans to lower costs at its investor day on Wednesday, but failed to provide an update on plans to launch a more affordable electric car, sending its shares 6% lower.

“[W]e believe many investors were hoping for more specifics on when a third generation vehicle could be shipping, and therefore the lack of clarity beyond the comment that they’re working as fast as they can and it could be in the next couple of years is likely to be viewed as a disappointment to some,” Goldman Sachs said in a note.

(C) Reuters.

By Geoffrey Smith

Investing.com — The U.S. labor market continued to defy forecasts for a slowdown last week, as the number of people filing initial claims for jobless benefits fell again.

Initial jobless claims edged down to 190,000 from 192,000 the previous week, again failing to corroborate the visible rise in layoffs across much of the U.S. economy. Analysts had expected a modest rise in initial claims to 195,000.

Continuing claims, meanwhile, stayed stuck at 1.65 million. After rising from a historic low of 1.3 million in the middle of last year, continuing claims – which are seen as a better indicator of how easy or difficult it is for the newly unemployed to find work – have drifted marginally lower through the first two months of 2023.

The data are the only labor market numbers due from the U.S. this week, with the key nonfarm payrolls report pushed back to March 10th.

Other data released at the same time, however, added to the body of evidence over the last couple of weeks suggesting that more inflationary pressure remains in the U.S. economy than the decline in headline consumer prices over recent months would suggest.

Unit labor costs rose by 3.2% in the fourth quarter of last year, accelerating again after two quarters of relatively subdued gains. Unit labor costs, which are a rough measure of productivity, rose strongly throughout the pandemic, but had moderated clearly as the disruptions to the economy from lockdowns and supply chain bottlenecks faded. Over the same period, nonfarm productivity rose by only 1.7%, rather than the 2.6% expected.

The numbers added to pressure on U.S. bonds, which have been steadily repricing a higher trajectory for interest rates over the last week. The benchmark two-year Treasury note yield rose 5 basis points to 4.94%, while the 10-Year note yield, which breached 4% for the first time since November on Wednesday, rose 8 basis points to 4.08%.

The Dollar Index , which tracks the greenback against a basket of advanced economy currencies, rose another 0.6% to 105.02.

(C) Reuters. FILE PHOTO: U.S. Dollar banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

By Joice Alves and Tom Westbrook

LONDON/SINGAPORE (Reuters) – The euro fell against a strengthening dollar on Thursday, after having posted its largest one-day gain in a month, ahead of euro zone inflation data that could renew the rally in the currency.

The euro rose 0.9% on the dollar on Wednesday, marking its biggest daily jump in a month, following hotter-than-expected German inflation in February that added to pressure on the European Central Bank to raise rates after unexpectedly strong readings in France and Spain. It was 0.35% lower at $1.0633 ahead of inflation data due at 1000 GMT.

But investors are taking the view that the euro is poised to rise as markets are bracing for another high reading.

“Contrary to expectations the data for the euro zone due today might not show a small fall but instead also record a further rise. The same applies for core inflation,” said Antje Praefcke, a foreign exchange analyst at Commerzbank (ETR:CBKG).

“As a result the ECB rate expectations might be adjusted to the upside again.” That would likely send the euro higher, she added.

Sterling was held back by remarks from Bank of England Governor Andrew Bailey, who said “nothing is decided” on future rate increases which had traders trimming back bets on higher rates. Sterling was down 0.5% to $1.1964. [GBP/]

The dollar index, which measures the U.S. currency against six others – rose 0.39% to 104.79, boosted by a rise in U.S. Treasury yields and after Federal Reserve official Neel Kashkari left the door open to a 50-basis point rate hike at the Fed’s next meeting in March.

Elsewhere the yen fell 0.37% to 136.72 to the dollar, while the Australian and New Zealand dollars and the Chinese yuan wavered slightly after strong gains on Wednesday that were supported by roaring Chinese manufacturing data.

The Aussie dollar was last 0.44% softer at $0.6729. The New Zealand dollar, which rose 1.2% on Wednesday, fell 0.7% on Thursday to $0.6214.

China’s yuan settled back to 6.9125 to the dollar after logging its biggest jump of 2023 on Wednesday.

Investors are looking ahead to China’s National People’s Congress meeting, which begins on Sunday, watching for guidance on policy support for the post-COVID recovery.

“Yesterday’s positive surprise in the PMIs for China in February are a positive for mining commodity prices and the currencies of countries that export them,” said Commonwealth Bank of Australia (OTC:CMWAY)’s head of international economics, Joe Capurso.

“The yuan and commodity currencies such as the Australian and New Zealand dollars can rise materially if the meeting sends a pro-growth signal, as we expect,” he said.

Bitcoin slipped 1% to $23,395 as trouble at crypto lender Silvergate weighed on the mood.

Besides European inflation, euro zone employment and central bank minutes are due later in the day, as are U.S. jobless claims data.

(C) Reuters.

By Davit Kirakosyan

Investing.com — Here is your daily Pro Recap of the biggest dividend headlines you may have missed on InvestingPro. Start your free 7-day trial to get this news first.

Choice Hotels hikes its payout, PT raised at Morgan Stanley

Choice Hotels International (NYSE:CHH) hiked its dividend by 21.1% to $0.2875 per share, or $1.15 annualized, for an annual yield of 1%. The dividend will be payable on April 18, 2023, to stockholders of record on April 3, 2023, with an ex-dividend date of March 31, 2023.

The company reported its Q4 results last month, with both EPS and revenues coming in better than the consensus estimates.

Morgan Stanley raised its price target on the company to $134.00 from $129.00 while maintaining an Equalweight rating.

Aaron’s hikes, Logansport Financial declares special dividend

Aaron’s (NYSE:AAN) hiked its dividend by 11.1% to $0.125 per share, or $0.5 annualized, for an annual yield of 3.5%. The dividend will be payable on April 4, 2023, to stockholders of record on March 16, 2023, with an ex-dividend date of March 15, 2023.

The company reported its Q4 results yesterday, with EPS coming in better than the consensus estimates, however, its full 2023 year guidance missed the expectations.

Shares dropped more than 5% pre-market today.

Logansport Financial (OTC:LOGN) declared a special dividend of $2.50 per share, for an annual yield of 6.1%. The dividend will be payable on May 3, 2023, to stockholders of record on April 3, 2023, with an ex-dividend date of March 31, 2023.

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