Categories
World News

S&P 500 futures are flat close to report ranges forward of Fed summit

A trader works on the New York Stock Exchange (NYSE) in New York on August 20, 2021.

Andrew Kelly | Reuters

S&P 500 futures were lower Thursday after the benchmark surged above 4,500 for the first time in the previous session and ahead of the Federal Reserve’s annual symposium on Friday.

S&P 500 futures lost 0.02% and Nasdaq 100 futures lost 0.1%. The Dow Jones Industrial average futures were unchanged.

The weekly initial jobless claims totaled 353,000 as expected, the Department of Labor reported Thursday morning. Economists polled by Dow Jones expected 350,000 Americans to register as unemployed last week, compared with 348,000 the previous week.

Economic growth in the second quarter was 6.6% according to the second estimate by the Department of Commerce on Thursday. This was a slight upward correction from the previously reported annual increase of 6.5%.

The Federal Reserve’s much-anticipated Jackson Hole Symposium will be held virtually on Friday this year, with many central bank speakers expected to make remarks to the media starting Thursday. At the event, central bankers could share their plan to curb monetary stimulus.

Esther George, president of the Kansas City Fed, told CNBC Thursday morning that “given the progress we’ve seen,” a Fed throttling is “appropriate”, although she did not specify when she thought it should begin.

“If you look at the job growth last month, the month before, if you look at the current level of inflation, I would think that the level of housing we are currently offering is probably not needed in this scenario,” she said “So I would be ready to talk about tapers sooner rather than later.”

Salesforce shares rose 2% in pre-trading hours after the software giant released second-quarter results and forecasts that beat analysts’ estimates. Ulta Beauty increased 5% due to strong results.

Zoom Video’s shares rose more than 2% after Morgan Stanley upgraded the stock and forecast an 18% uptrend.

On Wednesday, the S&P 500 gained 0.22% to close on a record, led by stocks that are benefiting from the economic reopening such as airlines, cruise lines and financial companies. The 500-share average broke above 4,500 for the first time on Wednesday, but closed below that level. The benchmark is up 105% from its pandemic low.

The Nasdaq Composite rose 0.15% and also hit a record close. The Dow Jones Industrial Average rose 39 points.

“While we continue to believe in the secular bull market for US stocks, we have proposed some cash in the face of lower highs (including bearish divergences) on a variety of indicators, weaker August and October seasonality, and the transition of the presidential cycle into its weakest phase in US stocks and declining signals from margin debt, “wrote Stephen Suttmeier, Technical Research Strategist at Bank of America.

The benchmark 10-year government bond yield rose as high as 1.352% on Wednesday as worries about slowing growth in the Delta variant eased, reaching its highest level since the beginning of the month when it returned as high as 1.364%.

CNBC Pro’s Stock Picks and Investment Trends:

“The yield on 10-year government bonds has continued to rise in the last few days and has exploded in [Wednesday’s] act and send a strong message that the US Delta variant of Covid may be peaking, which should build confidence, resume economic reopening and stimulate investment flows towards small caps and cyclical stocks, “said Jim Paulsen, Chief Investment Strategist at the Leuthold Group.

Chairman Jerome Powell will make remarks at the Fed summit on Friday. In response to the pandemic, the Federal Reserve has bought at least $ 120 billion a month in bonds to curb longer-term interest rates and stimulate economic growth.

“Expect investors to keep an eye on the Fed symposium for the remainder of this week for comments on the rate hike or the timing of rate hikes,” Paulsen said. “Either unexpected comments from the Fed or a failure or success in scaling up to 4500 could add additional volatility to the equity and bond markets.”

Several companies reported quarterly earnings on Thursday, including Dell Technologies, Gap, HP and Abercrombie & Fitch.

Become a smarter investor with CNBC Pro.
Get stock picks, analyst calls, exclusive interviews and access to CNBC TV.
Sign in to get started Try it for free today

Categories
Entertainment

‘Kipchoge: The Final Milestone’ Evaluate: Skipping Forward

The well-intentioned but bromide-laden first part of the film introduces us to Kipchoge the man, shown as a runner with a tireless work ethic, a contemplative attitude and a fundamental modesty. We hear about how he inspires colleagues and young athletes. There are so many slow-motion running clips, abrupt switches to black-and-white or scenes that appear staged for effect (e.g., as Kipchoge discusses how his mother instilled a sense of discipline, we see a woman awakening a boy for a morning routine) that you could cut the movie into Nike ads with minimal alteration. The director, Jake Scott, son of Ridley, has in fact made such commercials.

But the documentary’s pulse quickens when it turns its attention to Kipchoge’s efforts to beat the two-hour mark. His 1:59:40 doesn’t count as an official world record because he didn’t run it under traditional marathon strictures. The film illustrates how a wide array of collaborators optimized conditions. Various participants describe the road surfacing, how laser guidance helped set the pace and how teams of fellow runners took turns making Y formations around Kipchoge to reduce air resistance. The athleticism, physics and what one person calls the “bit of ballet” of the event are all stirring to witness.

Kipchoge: The Last Milestone
Rated PG-13 for … strenuous running? Running time: 1 hour 27 minutes. Rent or buy on Apple TV, Google Play and other streaming platforms and pay TV operators.

Categories
Health

Biden administration’s booster shot steerage ‘prudent factor to do to remain forward of this virus,’ says U.S. surgeon basic

The US surgeon general Dr. Vivek Murthy told CNBC that the Biden government is recommending Covid booster vaccinations to most vaccinated Americans starting September 20 to stay one step ahead of the virus.

“We put our heads together, the top public health and medicine officials at the Department of Health and Social Affairs, and have come to the conclusion that it would be wise to start booster vaccinations after eight months to get one step ahead of this virus.” and make sure people have and are receiving protection from the vaccines they had for the past few months, “Murthy said.

A vaccine advisory committee from the Centers for Disease Control and Prevention and the Food and Drug Administration have yet to formally sign the plan before states can begin giving third doses.

Murthy told The News with Shepard Smith that the government’s booster shot strategy is also about transparency.

“We’re making plans now because, firstly, we need to plan ahead, but secondly, we wanted the public to know what we were seeing with the data in an effort to be transparent and open to the public,” said Murthy.

U.S. health officials are basing their decisions on new data showing that vaccination protection wears off over time. The vaccines were 92% effective against Covid infection before the Delta variant spread in the US, but data shows that protection has dropped to 64%.

Categories
World News

Asia-Pacific shares set to drop; Japan’s retail gross sales information forward

SINGAPORE – Asia Pacific markets were mostly lower in early Friday trading. Meanwhile, US stocks rebounded, despite data showing that gross domestic product grew less-than-expected in the second quarter.

The Japanese Nikkei 225 lost 0.8% in early trading while the Topix lost 0.46%.

Reuters reported that the country’s industrial production rose 6.2% in June, up sharply after falling 6.5% in May. Retail sales in June were up 0.1% yoy, less than forecast for a 0.2% increase.

South Korea’s Kospi lost 0.55%.

The S & P / ASX 200 in Australia traded just above the flatline. Markets will be tracking the Covid situation in Sydney, which reported a record daily surge in Covid cases despite an extended lockdown on Thursday. Reuters reported that authorities have asked the military for help enforcing the lockdown.

MSCI’s broadest index for Asia Pacific stocks outside of Japan was unchanged.

CNBC Pro’s Stock Picks and Investment Trends:

Shares rebounded during Thursday’s regular session in the US, although data showed US GDP rose 6.5% on an annualized basis in the second quarter, well below the 8.4% Dow Jones estimate.

The Dow Jones Industrial Average gained around 150 points on Thursday after hitting a new intraday high. The S&P 500, which also briefly hit an all-time high, ended the day up 0.4% at 4,419.15.

“Yesterday’s rebound in Chinese equities after the recent regulatory-induced sell-off resulted in solid performance overnight in risk assets,” said Rodrigo Catril, senior FX strategist at National Australia Bank.

Investors will watch as Chinese stocks end a week of volatile trading. Hong Kong’s Hang Seng index fell more than 8% in two days and rebounded 3% in Thursday’s session.

Currencies and oil

The US dollar index, which tracks the greenback versus a basket of its competitors, stood at 91.880, falling from a level above 92 the previous day.

The Japanese yen was trading at 109.40 per dollar, up slightly from above 109.9 at the beginning of the week. The Australian dollar changed hands at $ 0.7394 after falling to around $ 0.735 earlier in the week.

Oil prices fell on the morning of Asian trading hours, with Brent crude oil futures falling 0.34% to $ 75.79 a barrel. US crude oil futures are down 0.42% to $ 73.33 a barrel.

Categories
World News

Inventory futures maintain regular forward of an enormous week of Large Tech earnings

Traders working on the New York Stock Exchange (NYSE) today, Wednesday, April 21, 2021.

Source: NYSE

Stock futures opened little changed after major averages closed the previous session with record closing highs and a busy week ago with earnings reports from the tech’s biggest hits.

The Dow Jones Industrial Average was down 5 points, or 0.01%. S&P 500 and Nasdaq 100 futures were down 0.03% and 0.01%, respectively.

In the previous session, the Dow rose 238.20 points, or 0.68%, to 35,061.55. The S&P 500 gained 1.01% to 4,411.79 and the Nasdaq Composite rose 1.04% to 14,836.99.

All three major averages closed at record highs last week after markets slumped earlier in the week on concerns about the spread of the Delta variant of Covid and the potential hindrance to economic recovery. Uncertainty caused bond yields to decline briefly and investors moved into tech stocks. Both bonds and stocks rallied quickly by the end of the week.

Tech stocks rose last week on better-than-expected earnings reports for the second quarter as well as the continued proliferation of the Delta variant. Twitter and Snap both rose Thursday after better-than-expected earnings reports for the second quarter. Twitter finished 3% higher on Friday while Snap shot up 24%.

One of the busiest weeks with results reports is on deck next week, and Tesla is kicking off after the closing bell. Last week, CEO Elon Musk said the automaker would likely accept bitcoin for vehicle purchases again.

Big tech giants Apple, Alphabet and Microsoft will be reporting on Tuesday, and Google, Facebook and Amazon will be reporting later in the week as well.

Investors will follow the Fed’s two-day monetary policy meeting starting Tuesday. The Federal Reserve Open Market Committee and Board of Governors are expected to issue a policy statement on Wednesday. On Thursday the Ministry of Commerce will publish the GDP data for the second quarter.

On Monday morning, the US Department of Housing and Urban Development will release new data on home sales and the Federal Reserve Bank of Dallas will release its monthly business activity index for Texas manufacturing.

Categories
World News

Asia-Pacific shares edge increased; Australia central financial institution’s fee choice forward

SINGAPORE — Shares in major Asia-Pacific markets edged higher on Tuesday morning as investors look ahead to the Australian central bank’s interest rate decision.

The Nikkei 225 and Topix index in Japan both rose fractionally in morning trade. Over in South Korea, the Kospi gained 0.24%.

Meanwhile, stocks in Australia climbed as the S&P/ASX 200 advanced 0.22%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.08% higher.

Looking ahead, the Reserve Bank of Australia is set to announce its interest rate decision at 12:30 p.m. HK/SIN on Tuesday.

Stock picks and investing trends from CNBC Pro:

US crude futures jump

U.S. crude futures jumped in the morning of Asia trading hours on Tuesday, rising 1.57% to $76.34 per barrel. International benchmark Brent crude futures were fractionally higher at $77.19 per barrel.

Shares of Asia-Pacific firms in the oil space rose in Tuesday morning trade, with Australia’s Beach Energy rising 1.57% while Santos gained 1.44%. Shares of Inpex in Japan also jumped 1.19%.

Oil prices surged to multiyear highs on Monday after talks between OPEC and its oil-producing allies, known as OPEC+, were postponed indefinitely following a failure by the group to reach on agreement on production policy for August and beyond.

Currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 92.241 — off levels above 92.4 seen late last week.

The Japanese yen traded at 110.86 per dollar after touching levels around 110.8 against the greenback yesterday. The Australian dollar changed hands at $0.7541, above levels below $0.752 seen yesterday.

Here’s a look at what’s on tap:

  • Australia: Reserve Bank of Australia’s interest rate decision at 12:30 p.m. HK/SIN

— CNBC’s Pippa Stevens contributed to this report.

Categories
Health

Asia faces ‘bumpy street’ forward as Covid instances stay excessive

A woman is given a dose of Covid-19 vaccine during the mass vaccination at Tanah Abang Textile Market in Jakarta, Indonesia on June 19, 2021.

Agung Kuncahya B. | Xinhua News Agency | Getty Images

Asia’s fight against the coronavirus is far from over, but an expected increase in the spread of Covid vaccines in the coming months could defuse the situation, according to investment bank HSBC.

India was the hardest hit country this year, suffering from a devastating second wave that saw cases soar between February and early May. Although the daily reported numbers of infections have dropped significantly from a peak of over 414,000 cases in a day, the South Asian nation still reports an average of 50,000 cases per day.

Countries like Indonesia, Malaysia and Nepal have seen a sharp surge in cases recently, while the numbers of infections in other places continue to rise. Nations like Singapore, South Korea, Japan, and China have also faced outbreaks recently.

“It’s easy to believe or tempting to think we’ve got through it all, but the reality is, if you look at Asia ex-India, we’re currently seeing record numbers of daily infections,” said Frederic Neumann, co-head of Asian economic research at HSBC, said on CNBC’s “Squawk Box Asia” on Wednesday.

“There are still terrible human tariffs in many parts of Southeast Asia and even in India,” he said.

Delta variant

Experts say the closely watched coronavirus mutation known as the delta variant is partly responsible for the rise in new cases in many parts of the world. First discovered in India and now present in over 80 countries, Delta is said to be more contagious than previous variants.

Although it remains unclear whether the variant is more deadly than previous strains, its increased transmissibility, especially in environments with low vaccination and minimal social distancing, means that in absolute terms it is likely to infect more people, according to analysts at political risk advisory group Eurasia Group.

“Countries with younger populations and wetter climates could therefore experience more severe outbreaks than previous waves, even if the proportion of young people with serious illnesses remains the same,” said Eurasia Group analysts in a recent statement. They added that there is a growing risk of health system overload in many emerging markets.

Asia lags far behind North America and Europe in vaccines. The data showed that just over 23% of the population received at least one Covid vaccine dose, compared to over 40% or more in the other two regions.

“We are far from finished,” said Neumann from HSBC. “That said, if we look at the third quarter, there’s still a risk that at least some glitches will get through. We just need these vaccines. We need more supply. We have to introduce them. “

Economic recovery

Neumann said that based on publicly available information, HSBC predicts that many Asian countries will not achieve herd immunity until early 2022 at the earliest.

“That means some of the restrictions, especially on travel, remain in place, and unfortunately that still means a bit of a bumpy road for the next few months,” he said.

When a country reaches herd immunity, it means that the virus can no longer spread rapidly because most of the population is either fully vaccinated or would have become immune from infection.

In a release, Neumann and other HSBC analysts said they expect local demand growth in the region to pick up pace over the next six months. It is due to a large, expected surge in vaccine distribution, they said.

According to the bank, exports remain strong despite ongoing transport disruptions and supply chain bottlenecks.

“The latter should slowly subside as demand for services recalibrates and factories make up for lost time. However, the crisis has shown that there is an urgent need for more investment in capacity – expect investment to rise as the region tiptoe out of the pandemic, ”wrote the HSBC analysts.

The investment bank forecast that Asia (excluding Australia and New Zealand) will grow 6.6% year-on-year in 2021 – compared to a 0.9% decline in the previous year – and 4.6% in 2022.

Categories
World News

Shares dip forward of key Fed assembly

US stocks fell slightly on Tuesday ahead of the Federal Reserve’s final monetary policy meeting.

The S&P 500 lost 0.1% after rising 0.1% to hit a new all-time high of 4.57.18. The Dow Jones Industrial Average was 50 points lower. The Nasdaq Composite, which hit a record high in the previous session, was down 0.3%.

There were very few outstanding actors on Tuesday. Some reopening games like Boeing, Airlines and Cruise Ships all traded higher.

On the data front, the final demand index for producer prices rose 6.6% in the twelve-month months ended May, the largest increase since the twelve-month data was first computed in November 2010.

On a monthly basis, the producer price index for final demand rose 0.8%, ahead of the Dow Jones estimate of 0.6%. The producer prices measure the prices paid to the producers as opposed to the prices at the consumer level.

Meanwhile, retail sales data fell 1.3% in May, compared to an expected drop of 0.7% per economist polled by Dow Jones.

“The mixed data didn’t raise any eyebrows in the market,” said Fiona Cincotta, senior financial markets analyst at City Index. “The market has barely reacted, and few who are brave enough to take large positions ahead of tomorrow’s Fed announcement. The big question is whether the Fed will be very slow to start taper talk and the containment debate about ultra -to introduce free monetary policy. “

The Fed’s two-day monetary policy meeting began Tuesday and is a focus for markets this week. The central bank is unlikely to take any action. However, comments on interest rates, inflation, and the economy could drive market moves.

Traders will listen carefully to comments on inflation and the Fed’s possible tightening plans.

Billionaire hedge fund manager Paul Tudor Jones told CNBC on Monday that this Fed meeting could be the most important in Chairman Jerome Powell’s career. Tudor Jones also warned that Powell could trigger a big sell-off in risk assets if he doesn’t do a good job of signaling a decrease in the Fed’s monthly security purchases.

Did you like this article?
For exclusive stock selection, investment ideas and global CNBC livestream
Sign up for CNBC Pro
Start your free trial now

Categories
Politics

Voting Rights Invoice Falters in Congress as States Race Forward

WASHINGTON — In the national struggle over voting rights, Democrats have rested their hopes for turning back a wave of new restrictions in Republican-led states and expanding ballot access on their narrow majorities in Congress. Failure, they have repeatedly insisted, “is not an option.”

But as Republican efforts to clamp down on voting prevail across the country, the drive to enact the most sweeping elections overhaul in generations is faltering in the Senate. With a self-imposed Labor Day deadline for action, Democrats are struggling to unite around a strategy to overcome solid Republican opposition and an almost certain filibuster.

Republicans in Congress have dug in against the measure, with even the most moderate dismissing it as bloated and overly prescriptive. That leaves Democrats no option for passing it other than to try to force the bill through by destroying the filibuster rule — which requires 60 votes to put aside any senator’s objection — to pass it on a simple majority, party-line vote.

But Senator Joe Manchin III of West Virginia, the Democrats’ decisive swing vote, has repeatedly pledged to protect the filibuster and is refusing to sign on to the voting rights bill. He calls the legislation “too darn broad” and too partisan, despite endorsing such proposals in past sessions. Other Democrats also remain uneasy about some of its core provisions.

Navigating the 800-page For the People Act, or Senate Bill 1, through an evenly split chamber was never going to be an easy task, even after it passed the House with only Democratic votes. But the Democrats’ strategy for moving the measure increasingly hinges on the longest of long shots: persuading Mr. Manchin and the other 49 Democrats to support both the bill and the gutting of the filibuster.

“We ought to be able to pass it — it really would be transformative,” Senator Chris Coons, Democrat of Delaware, said recently. “But if we have several members of our caucus who have just point-blank said, ‘I will not break the filibuster,’ then what are we even doing?”

Summarizing the party’s challenge, another Democratic senator who asked to remain anonymous to discuss strategy summed it up this way: The path to passage is as narrow as it is rocky, but Democrats have no choice but to die trying to get across.

The hand-wringing is likely to only intensify in the coming weeks. Senator Chuck Schumer of New York, the majority leader, vowed to force a floor debate in late June, testing Mr. Manchin’s opposition and laying the groundwork to justify scrapping the filibuster rule.

“Hopefully, we can get bipartisan support,” Mr. Schumer said. “So far, we have not seen any glimmers on S. 1, and if not, everything is on the table.”

The stakes, both politically and for the nation’s election systems, are enormous.

The bill’s failure would allow the enactment of restrictive new voting measures in Republican-led states such as Georgia, Florida and Montana to take effect without legislative challenge. Democrats fear that would empower the Republican Party to pursue a strategy of marginalizing Black and young voters based on former President Donald J. Trump’s false claims of election fraud.

If the measure passed, Democrats could effectively overpower the states by putting in place new national mandates that they set up automatic voter registration, hold regular no-excuse early and mail-in voting, and restore the franchise to felons who have served their terms. The legislation would also end partisan gerrymandering of congressional districts, restructure the Federal Election Commission and require super PACs to disclose their big donors.

A legion of advocacy groups and civil rights veterans argue that the fight is just starting.

“This game isn’t done — we are just gearing up for a floor fight,” said Tiffany Muller, the president of End Citizens United and Let America Vote, which are spending millions of dollars on television ads in states like West Virginia. “At the end of the day, every single senator is going to have to make a choice if they are going to vote to uphold the right to vote or uphold an arcane Senate rule. That is the situation that creates the pressure to act.”

Proponents of the overhaul on and off Capitol Hill have focused their attention for weeks on Mr. Manchin, a centrist who has expressed deep concerns about the consequences of pushing through voting legislation with the support of only one party. So far, they have taken a deliberately hands-off approach, betting that the senator will realize that there is no real compromise to be had with Republicans.

There is little sign that he has come to that conclusion on his own. Democrats huddled last week in a large conference room atop a Senate office building to discuss the bill, making sure Mr. Manchin was there for an elaborate presentation about why it was vital. Mr. Schumer invited Marc E. Elias, the well-known Democratic election lawyer, to explain in detail the extent of the restrictions being pushed through Republican statehouses around the country. Senators as ideologically diverse as Raphael Warnock of Georgia, a progressive, and Jon Tester of Montana, a centrist, warned what might happen if the party did not act.

Mr. Manchin listened silently and emerged saying his position had not changed.

“I’m learning,” he told reporters. “Basically, we’re going to be talking and negotiating, talking and negotiating, and talking and negotiating.”

Despite the intense focus on him, Mr. Manchin is not the only hurdle. Senator Kyrsten Sinema, Democrat of Arizona, is a co-sponsor of the election overhaul, but she has also pledged not to change the filibuster. A handful of other Democrats have shied away from definitive statements but are no less eager to do away with the rule.

“I’m not to that point yet,” Mr. Tester said. He also signaled he might be more comfortable modifying the bill, saying he “wouldn’t lose any sleep” if Democrats dropped a provision that would create a new public campaign financing system for congressional candidates. Republicans have pilloried it.

“First of all, we have to figure out if we have all the Democrats on board. Then we have to figure out if we have any Republicans on board,” Mr. Tester said. “Then we can answer that question.”

Republicans are hoping that by banding together, they can doom the measure’s prospects. They succeeded in deadlocking a key committee considering the legislation, though their opposition did not bar it from advancing to the full Senate. They accuse Democrats of using the voting rights provisions to distract from other provisions in the bill, which they argue are designed to give Democrats lasting political advantages. If they can prevent Mr. Manchin and others from changing their minds on keeping the filibuster, they will have thwarted the entire endeavor.

The Battle Over Voting Rights

Amid months of false claims by former President Donald J. Trump that the 2020 election was stolen from him, Republican lawmakers in many states are marching ahead to pass laws making it harder to vote and changing how elections are run, frustrating Democrats and even some election officials in their own party.

    • A Key Topic: The rules and procedures of elections have become a central issue in American politics. The Brennan Center for Justice, a liberal-leaning law and justice institute at New York University, counts 361 bills in 47 states that seek to tighten voting rules. At the same time, 843 bills have been introduced with provisions to improve access to voting.
    • The Basic Measures: The restrictions vary by state but can include limiting the use of ballot drop boxes, adding identification requirements for voters requesting absentee ballots, and doing away with local laws that allow automatic registration for absentee voting.
    • More Extreme Measures: Some measures go beyond altering how one votes, including tweaking Electoral College and judicial election rules, clamping down on citizen-led ballot initiatives, and outlawing private donations that provide resources for administering elections.
    • Pushback: This Republican effort has led Democrats in Congress to find a way to pass federal voting laws. A sweeping voting rights bill passed the House in March, but faces difficult obstacles in the Senate. Republicans have remained united against the proposal and even if the bill became law, it would likely face steep legal challenges.
    • Florida: Measures here include limiting the use of drop boxes, adding more identification requirements for absentee ballots, requiring voters to request an absentee ballot for each election, limiting who could collect and drop off ballots, and further empowering partisan observers during the ballot-counting process.
    • Texas: The next big move could happen here, where Republicans in the legislature are brushing aside objections from corporate titans and moving on a vast election bill that would be among the most severe in the nation. It would impose new restrictions on early voting, ban drive-through voting, threaten election officials with harsher penalties and greatly empower partisan poll watchers.
    • Other States: Arizona’s Republican-controlled Legislature passed a bill that would limit the distribution of mail ballots. The bill, which includes removing voters from the state’s Permanent Early Voting List if they do not cast a ballot at least once every two years, may be only the first in a series of voting restrictions to be enacted there. Georgia Republicans in March enacted far-reaching new voting laws that limit ballot drop-boxes and make the distribution of water within certain boundaries of a polling station a misdemeanor. Iowa has also imposed new limits, including reducing the period for early voting and in-person voting hours on Election Day. And bills to restrict voting have been moving through the Republican-led Legislature in Michigan.

“I don’t think they can convince 50 of their members this is the right thing to do,” said Senator Roy Blunt, Republican of Missouri. “I think it would be hard to explain giving government money to politicians, the partisan F.E.C.”

In the meantime, Mr. Manchin is pushing the party to embrace what he sees as a more palatable alternative: legislation named after Representative John Lewis of Georgia, the civil rights icon who died last year, that would restore a key provision of the Voting Rights Act of 1965 that the Supreme Court struck down in 2013.

That measure would revive a mandate that states and localities with patterns of discrimination clear election law changes with the federal government in advance, a requirement Mr. Manchin has suggested should be applied nationwide.

The senator has said he prefers the approach because it would restore a practice that was the law of the land for decades and enjoyed broad bipartisan support of the kind necessary to ensure the public’s trust in election law.

In reality, though, that bill has no better chance of becoming law without getting rid of the filibuster. Since the 2013 decision, when the justices asked Congress to send them an updated pre-clearance formula for reinstatement, Republicans have shown little interest in doing so.

Only one, Senator Lisa Murkowski of Alaska, supports legislation reinstating the voting rights provision in the Senate. Asked recently about the prospect of building more Republican support, Ms. Murkowski pointed out that she had been unable to attract another co-sponsor from her party in the six years since the bill was first introduced.

Complicating matters, it has yet to actually be reintroduced this term and may not be for months. Because any new enforcement provision would have to pass muster with the courts, Democrats are proceeding cautiously with a series of public hearings.

All that has created an enormous time crunch. Election lawyers have advised Democrats that they have until Labor Day to make changes for the 2022 elections. Beyond that, they could easily lose control of the House and Senate.

“The time clock for this is running out as we approach a midterm election when we face losing the Senate and even the House,” said Representative Terri A. Sewell, a Democrat who represents the so-called Civil Rights Belt of Alabama and is the lead sponsor of the bill named for Mr. Lewis.

“If the vote and protecting the rights of all Americans to exercise that most precious right isn’t worth overcoming a procedural filibuster,” she said, “then what is?”

Luke Broadwater contributed reporting.

Categories
World News

Earnings reviews, the Fed will check the market rally within the week forward

A Wall Street sign is seen near the New York Stock Exchange (NYSE) in New York City on May 4, 2021.

Brendan McDermid | Reuters

Investors will see if stocks maintain their newfound momentum over the coming week as major retailers like Walmart and Home Depot report earnings and housing data dominate the calendar.

The Federal Reserve can play a role as well. The minutes of the last meeting will be released on Wednesday and after the above-expected consumer and producer inflation in April, market pros will be watching this closely.

Central bank officials are also scheduled to provide comments, including Fed vice chairman Richard Clarida, who will speak next Monday.

Stocks were volatile. The rally on Thursday and Friday could not undo the heavy losses of the week. Defensive consumer staples, financials and materials were on the right track in major sectors for a positive week. The worst results came in consumer staples, down about 3.7% for the week, and technology, down 2.2%.

Technology stocks were among the top performers on Friday’s rally, up around 2.1%. Energy was the best performer with a plus of more than 3%.

“Watch it with a degree of fear,” said Art Hogan, chief marketing strategist at National Securities. “It’s not that the things that terrified us this week like inflation are going away … I think the fact that we recovered at the end of the week is constructive.” He added that he still expects the market to move forward with seizures and starts.

Fed Ahead

The Fed minutes should basically be a repeat of the last central bank meeting. However, it did so before the consumer price index rose a whopping 4.2% yoy in April.

That final meeting also came before the April employment report, which employed just 266,000 people, a quarter of what was expected.

“I think the Fed is ready to look through these weird data points. They think a data point is not a trend,” said Joseph Song, senior US economist at Bank of America.

However, markets have focused on whether data will help clarify when the Fed might be talking about winding up its bond purchase. This would be a precursor to the slow end of the $ 120 billion monthly asset purchase program and a signal that it is one step closer to the rate hike.

Hogan said when the weak employment report was released, market views had turned away from the idea that the Fed might discuss reducing its bond purchases when it holds its Jackson Hole Economic Symposium in late summer.

But the market returned to that view when the hot CPI report was released on Wednesday.

“We saw a hot CPI and a hot PPI,” said Hogan, referring to the producer price index. “That tells us the Fed could be behind the curve.”

The Fed has announced that it is expecting a temporary rate of inflation, but fears it may not be a temporary spike in the market. However, according to Hogan, investors consoled themselves with a decline in iron ore and copper, which fell nearly 2% over the week.

Retail income and housing

Large retailers report quarterly profits during the week. Walmart and Home Depot will report on Tuesday. Target, TJX and Lowes release results on Wednesday and BJ’s Wholesale and Kohl’s on Thursday.

Another disappointing data point was Friday retail sales in April, which was flat with March. But they are still at a high level. Based on the sales report, Hogan said retailers should have done well.

“You will likely hear the usual suspects outperforming. It used to be Walmart, Target, Home Depot and Lowe’s,” Hogan said. He said now others like TJX and Gap have joined the list and should do well.

In addition to income, there is housing data. The National Association of Home Builders Sentiment Index will be released on Monday, and construction starts will be released on Tuesday. Existing home sales will be issued on Friday.

Hogan said depending on the data, it could help builders who have fallen hard over the past week. He noted that DR Horton and Hovnanian had both been down for the week.

“The housing index was down 5% for the week, even though it was up 1%. [Friday]. This is a brand new sector that has a lot of implications, “he said.” What is good for home sales is good for auto sales too. It’s good for Home Depot and Lowe’s. “

Home builders were part of a broad market that rebounded on Friday.

Scott Redler, chief strategist at T3Live.com, said by the end of the week that some of the growth and tech names were doing better, like Facebook and Alphabet.

“The S&P 500 held the 50-day moving average, which is constructive,” he said.

The S&P 500 reached its 50-day period within about a dozen points, which is the average price of the last 50 closes. It is often a level that acts as a support, but when broken it can signal a negative trend.

The S&P 500 fell 1.5% for the week to 4,173.85. The Nasdaq ended the week at 13,429.98, down 2.3% from the week.

“The tech sector under pressure held its annual uptrend earlier in the week. Today it felt a little better than the rest of the week,” Redler said on Friday. “That doesn’t mean you can get into everything, but you can say that traders are buying better-trading stocks at these prices.”

Calendar for the week ahead

Monday

Merits: Hostess Brands, Lordstown Motors, Tencent

8:30 am Raphael Bostic, Atlanta Fed President, on CNBC

8:30 a.m. Empire production

10:00 am NAHB index

10:25 am Richard Clarida, vice chairman of the Fed, at the Fed conference in Atlanta

4:00 p.m. TIC data

6:00 p.m. Rob Kaplan, President of the Dallas Fed

Tuesday

Merits: Walmart, Home Depot, Macys, Baidu, Take-Two Interactive, Trip.com, NetEase

8:30 a.m. Housing construction begins

11:05 am Rob Kaplan, President of the Dallas Fed

Wednesday

Merits: Target, Lowe’s, JD.Com, Cisco, Schuhkarneval, TJX, Eagle Materials, Analog Devices, L Brands

10:00 am James Bullard, St. Louis Fed President, on economics and monetary policy

2 p.m. FOMC minutes

Thursday

Merits: BJ’s Wholesale, Kohl’s, Petco, Ralph Lauren, Applied Materials, Ross Stores, Deckers Outdoor, Hormel Foods, Palo Alto Networks

8:30 am Initial jobless claims

8:30 a.m. Philadelphia Fed

10:00 a.m. leading indicators

10:00 a.m. St. Louis Fed’s Bullard

10:30 a.m. Dallas Fed Chaplain

Friday

Merits: Deere, Foot Locker, Buckle, VF Corp, Booz Allen Hamilton

9:45 am Markit Manufacturing PMI

9:45 a.m. Markit Services PMI

10:00 am Existing home sales

12:15 p.m. Dallas Fed Chaplain, Atlanta Fed Bostic, and Richmond Fed President Thomas Barkin in a panel

1:30 p.m. Mary Daly, San Francisco Fed President