Stocks rise as bond yields sink amid recession: market wraps up

(Bloomberg) — Stocks hit all-time highs, Treasuries rose again and the dollar fell to its worst since August, as the Federal Reserve is expected to cut interest rates on Thursday.

Most Read from Bloomberg

Equities have extended their post-election rally, with the S&P 500 edging closer to the 6,000 mark. Many large companies have moved forward, and Apple Inc. and Nvidia Corp. lead them in megacaps. Lyft Inc. jumped 24% after the ride-hailing company issued an outlook. The number of closely watched banks fell by 2% after gaining more than 10% in the previous session. JPMorgan Chase & Co. down 4% after analyst downgrade.

US policymakers have already signaled a desire to continue a slower pace of rate cuts after the September halving. Economists expect a quarterly move on Thursday, followed by another in December. The decision will be announced at 2pm Washington time, with Jerome Powell holding a press conference 30 minutes later.

“The Fed’s statement on the outlook for rate cuts going forward will be very important for markets, given the recent post-election rise in bond yields, which is undoubtedly which frustrates the Fed’s efforts to move to a weaker policy stance,” said Glen Smith. GDS Wealth Management. “The Fed could halt its pace of rate cuts in December and through most of 2025 as inflation continues to decline and the economy continues to strengthen.”

The US stock rally has not been done, according to Evercore ISI experts, who see Donald Trump’s plans to lower the red tape that drives the S&P 500 to 6,600 points by the end of June 2025.

History shows the bull market is “still in its infancy,” Julian Emanuel wrote in a note. “The market will be greatly boosted by the prospect of deregulation in DC,” he said.

The S&P 500 rose 0.7%. The Nasdaq 100 rose 1.4%. The Dow Jones Industrial Average was little changed. Bloomberg’s index of the “Magnificent Seven” megacaps rose 2.1%. The Russell 2000 of small firms fell 0.1%.

The 10-year Treasury fell eight basis points to 4.35%. The Bloomberg Dollar Spot Index was down 0.7%. The pound gained as traders bet on the Bank of England easing.

Company Highlights:

• Qualcomm Inc. and Arm Holdings Plc, two chip companies heavily dependent on the smartphone market, posted earnings reports showing a long-term return.

• Under Armor Inc. reported results that exceeded analysts’ expectations as the sportswear company’s turnaround accelerated under founder Kevin Plank.

• Ralph Lauren Corp. raised its outlook for the year, citing strong sales in Europe and Asia and expectations for a solid holiday shopping season.

• Hershey Co. it reduced its outlook for growth in sales and earnings as consumers pulled back from lower retail prices, while “historically high” cocoa costs drove up prices.

• Warner Bros. Discovery Inc., the parent of streaming service Max, gained more subscribers than expected in the third quarter, suggesting that its online business is continuing to grow.

• Match Group Inc. lowered its full-year revenue forecast, disappointing investors who had been hoping for a turnaround in the dating app company amid pressure from activists.

• Barrick Gold Corp.’s latest quarterly earnings. shows that the gold producer continues to struggle to control costs and profit from the rising price of bullion.

• Moderna Inc. delivered better-than-expected profits and sales in the third quarter after an early start to this season’s Covid booster sales.

• Carlyle Group Inc. Chief Executive Harvey Schwartz has made progress in raising earnings and dividend payouts in the third quarter, a period when shareholder returns from business have remained muted for the firm.

• SolarEdge Technologies Inc. took a note of $ 1 billion and warned the network for the current quarter will be absent or even negative.

• CommScope Holding Co. released third-quarter results and said it was yet to reach a debt restructuring or financing agreement with a group of creditors.

• Kenvue Inc., the owner of Tylenol and Neutrogena, reported sales that beat estimates after its health and beauty division shrank.

• Virgin Galactic Holdings Inc. reported third-quarter revenue that fell short of expectations and partly a $300 million cash outlay to pay for a new space shuttle.

• Tapestry Inc. raised its guidance for the year, citing better-than-expected quarterly revenue for its Coach model and strong sales in Europe.

• Grifols SA, the Spanish pharmaceutical company hit by a short-term supplier attack this year, has reported increased profits in the third quarter and reiterated its guidance for the full year.

The Story Continues