Date: 2024-04-28 Page is: DBtxt003.php txt00019821 | |||||||||
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Burgess COMMENTARY Peter Burgess | |||||||||
| Stock market live updates: Watch Powell’s press conference as Fed keeps rates at zero; Dow up 500 Search quotes, news & videos LIVE UPDATES UPDATED THU, NOV 5 20202:57 PM EST Stock market live updates: Watch Powell’s press conference as Fed keeps rates at zero; Dow up 500 CNBC.com staff Stocks advanced on Thursday, building on their post-election rally. The major averages all jumped more than 2% with the Nasdaq Composite once again outperforming its peers. With Thursday’s gains, stocks are on track for their best week since April. (No player above? Click here to fire up the YouTube stream and watch.) 4 MIN AGO More monetary, fiscal policy ‘likely to be needed,’ Powell says Fed Chair Jerome Powell reiterated on Thursday his call for more fiscal support as the economy tries to recover amid the ongoing pandemic. “It’s for Congress to decide the timing, size and components of further fiscal support for the economy, and I will say the support provided by the CARES Act was absolutely essential in supporting the recovery we’ve seen so far, which has exceeded expectations,” Powell said. “And I do think it’s likely that further support is likely to be needed from monetary policy and fiscal policy.” Powell and others at the Fed have been calling for additional fiscal stimulus for several months. When asked if a lack of further fiscal support would change the central bank’s policy choices, Powell said the central bank would consider “all external factors” in making its decisions. — Jesse Pound 15 MIN AGO Powell says wearing masks will help economy WATCH NOW VIDEO01:59 Pace of improvement will moderate as more people return to work: Jerome Powell Federal Reserve Chairman Jerome Powell cited the use of masks as a way to help the economy. In the Fed’s post-meeting statement, it said the course of the coronavirus will impact the path of the economy. Powell then said the wearing of masks will help the economy get back to full strength during his opening remarks. —Patti Domm 22 MIN AGO Powell press conference begins with discussion of US economic outlook Federal Reserve Chairman Jerome Powell began the central bank’s press conference by discussing the current outlook for the U.S. economy and efforts to help output return to its pre-Covid levels. He also said the Fed’s balance sheet, comprised of various debt including U.S. bonds, is expanding at a rate of $120 billion per month. Powell is expected to field questions from reporters following his introductory remarks, when he may comment on efforts by Congress to pass additional fiscal stimulus. —Thomas Franck WATCH NOW VIDEO09:42 Watch Federal Reserve Chairman Jerome Powell’s opening remarks following recent decision to leave rates unchanged 57 MIN AGO Fed holds rates near zero, says economy still below pre-Covid levels WATCH NOW VIDEO03:09 Federal Reserve leaves rates unchanged as the economy continues to recover from the pandemic The Federal Reserve on Thursday said it would hold interest rates steady near zero in a move widely expected as the U.S. economy continues its effort to recover from a recession earlier this year caused by the coronavirus. The central bank did note, however, that the economy is still functioning below pre-Covid levels as a record number of new infections in the U.S. continues to prevent Americans from enjoying all of their normal activities. There were few language changes in the post-meeting statement from the Federal Open Market Committee, though the panel did note that the economy continues to struggle. “Economic activity and employment have continued to recover but remain well below their levels at the beginning of the year,” the statement said. —Thomas Franck, Jeff Cox 1 HOUR AGO Stock futures saw record trading volumes on election night Futures contracts tied to the Nasdaq 100 and Russell 2000 exchanged hands at a record pace on election night as traders tried to gauge the outcome of the vote. CME Group said Micro E-mini Nasdaq 100 futures had an overnight volume of 549,843, topping a previous record of 539,920. E-mini Russell 2000 futures contracts exchanged hands more than 76,000 times over that time period, also a record. —Fred Imbert 1 HOUR AGO Traders await Fed decision at 2 p.m., Powell’s remarks at presser Wall Street traders turned their attention to the Federal Reserve with 15 minutes until the central bank’s latest decision on the course of monetary policy. Though traders didn’t expect any major changes to the current course of low interest rates and massive asset-purchase program, many were eager to see if Chairman Jerome Powell would again call upon Congress to pass more fiscal stimulus. Powell, who in recent weeks has warned that failure to pass more stimulus could weigh on the economic recovery in the U.S., will host a press conference at 2:30 p.m. ET and answer questions from reporters. — Thomas Franck 1 HOUR AGO Expectation of monetary help from Fed boosting gold, Wells Fargo strategist says John LaForge, head of real asset strategy at Wells Fargo Investment Institute, told CNBC that the expectation of further monetary support from the Federal Reserve in the months ahead was boosting demand for gold. “The election was a distraction, and investors have come back to ‘Now wait a minute, we’re still spending all this money, we’re debasing the currency. We want something that holds its value,’” LaForge said. The Federal Reserve is not expected to announce any major policy changes at the conclusion of its meeting on Thursday. Though the election outcome is still uncertain, victory by Republicans in several key Senate races reduced expectations for a massive fiscal stimulus under a potential Joe Biden administration. However, LaForge said that traders in the precious metals and cryptocurrency markets expected the Fed to pick up the slack in that scenario, leading to downward pressure on the U.S. dollar and demand for store-of-value assets. “Look at the action today in the other precious metals. If you look at silver, platinum, palladium. If you put them all up against gold and Bitcoin today, they look like the same chart,” he said. LaForge also said that gold was poised for a technical breakout, helping its price action on Thursday, while he doubted that the move was being driven by concerns about the continued election uncertainty. — Jesse Pound 2 HOURS AGO Midday movers Qualcomm – Shares of Qualcomm surged more than 12% after the chipmaker reported stronger-than-expected quarterly results. Verizon – Shares of Verizon jumped 2% after JPMorgan upgraded the wireless telecommunications giant to overweight from neutral. Expedia Group – Shares of the travel website jumped 4.2% after the company beat top and bottom line estimates during the third quarter. Check out some other notable movers here. — Jesse Pound 3 HOURS AGO Bitcoin surges past $15,000 Bitcoin’s price climbed above $15,000 on Thursday, hitting the highest level since January 2018. The world’s largest cryptocurrency last traded nearly 9% higher at a price of $15,233, according to data from industry website CoinDesk. Bitcoin has more than doubled in value in 2020. Its meteoric rise comes on the back of unprecedented stimulus from governments and global central banks during the coronavirus pandemic, which some industry insiders believe has made the virtual currency more attractive than fiat currencies like the dollar. — Ryan Browne, Yun Li 3 HOURS AGO Markets at midday: Stocks rally for a second day as election results awaited The major averages were sharply higher for a second day as traders looked for clarity on the U.S. presidential and Senate elections. The Dow jumped more than 500 points, or 2%. The S&P 500 gained 2.1% and the Nasdaq Composite gained 2.4%. —Fred Imbert 3 HOURS AGO Divided government lowers chances for tech regulation, Ives says The increasing possibility of a divided government is bullish for tech stocks because it will defuse the regulatory pressure on some of the stock market’s largest companies, Wedbush analyst Dan Ives said in a note. “While the DOJ suit vs. Google and potentially others on the horizon remains a long-term threat with litigation likely to go for years, for now the Beltway vs. Big Tech regulatory environment looks less onerous than it could have in a Blue Wave scenario and stocks are reacted accordingly in snapback fashion,” Ives said. Ives also cited the possibility of decreased tensions with China under a Joe Biden administration as a positive outcome for tech stocks. He said the tech sector broadly could rise another 10% to 15% by the end of the year. — Jesse Pound 5 HOURS AGO Gold surging ahead of Fed announcement The price of gold moved higher on Thursday as the election outcome remained unclear and investors prepared for a Fed policy announcement in the afternoon. December futures contracts for gold rose more than 2.3% to $1940 per ounce, the highest level since September. Silver, copper and platinum were also moving higher. — Jesse Pound 5 HOURS AGO Stock rally gains momentum, S&P headed for best week since April Stocks’ rally picked up steam on Thursday, putting the major averages on track for their best week in months. The S&P 500 and Nasdaq Composite are on track for their largely weekly advances since April, rising 7% and 8.5%, respectively. The Dow, meanwhile, is up 5.8% for the week and on track for its best week since June. The Dow last traded 366 points higher for a gain of 1.3%, while the S&P and Nasdaq were up 1.7% and 2.2%, respectively. On Wednesday the Dow jumped 1.34% while the S&P gained 2.2%. The Nasdaq Composite was the relative outperformer, advancing 3.85% in its best day since April. — Pippa Stevens 5 HOURS AGO Stocks open higher as U.S. awaits result of presidential election U.S. stocks jumped at the open on Thursday, extending Wednesday’s rally, as investors hoped that the outcome of the presidential election would soon be determined. The Dow Jones Industrial Average rose 376 points for a gain of 1.35%. The S&P 500 was up 1.54%, while the Nasdaq Composite traded 1.9% higher. — Pippa Stevens 6 HOURS AGO Initial claims slightly higher than expected Initial jobless claims for the last week of October came in at 751,000, which was 10,000 higher than economists surveyed by Dow Jones had expected. The data point was a slight improvement over the revised number of 758,000 claims from the prior week, but it is still well above the pre-pandemic average. — Jesse Pound 7 HOURS AGO General Motors reports strong earnings, shares jump Shares of General Motors were up 6.1% after the car maker posted better-than-expected earnings for the third quarter. GM earned an adjusted $2.83 per share. Analysts polled by Refinitiv expected a profit of $1.38 per share. The company’s earnings were driven strong truck and SUV sales in North America. John Stapleton, GM’s interim CFO, said the automaker’s sales in the U.S. and China are “recovering faster than many people expected, and GM is benefiting from robust customer demand for our new vehicles and services, especially our full-size pickups and SUVs.” —Fred Imbert, Michael Wayland 7 HOURS AGO Federal Reserve’s regular meeting ends today, could call for more stimulus The Federal Reserve is expected to wrap its regular two-day meeting on Thursday with no major proclamations as central bank leaders distance themselves from the chaos of the 2020 elections. Chairman Jerome Powell is expected, however, to be asked about one of the market’s top concerns: more fiscal stimulus from Congress. Though the Fed typically refrains from weighing in on congressional affairs, the central bank’s leading role in helping the U.S. economy through the effects of the coronavirus has forced Powell and his deputies to slowly increase calls for additional support from lawmakers in recent months. Specifically, Powell has warned that failure to pass more relief could prompt a more rapid decline in consumer spending or missed rent payments. “The risk is that, over time, they go through those savings, they haven’t been able to find employment yet because it’s going to take a while to get 11 million people back to work, so their spending will decline,” Powell said in September. “Their ability to stay in their homes will decline. So, the economy will begin to feel those negative effects at some time.” Stimulus talks had stalled between the White House and House Speaker Nancy Pelosi in the weeks leading up to the 2020 elections. Though Senate Republicans had balked at Democrats’ calls for a $2 trillion bill, Majority Leader Mitch McConnell said Wednesday that additional fiscal relief will be chamber’s top focus when it reconvenes next week. —Thomas Franck 7 HOURS AGO Qualcomm shares surge on strong earnings Qualcomm shares rallied more than 14% in the premarket after the chip maker reported quarterly earnings and revenue that beat analyst expectations. The company earned an adjusted $1.45 per share on revenue of $6.5 billion. Analysts expected earnings per share of $1.17 on revenue of $5.93 billion. “Our fiscal fourth quarter results demonstrate that our investments in 5G are coming to fruition and showing benefits in our licensing and product businesses,” CEO Steve Mollenkopf said in a statement. —Fred Imbert, Kif Leswing 7 HOURS AGO Initial jobless claims to be released in an hour Investors will get another look at the health of the labor market when initial jobless claims are released at 8:30 am ET. The data will show the number of Americans who filed for unemployment during the last week of October. Economists surveyed by Dow Jones are expecting 741,000 new claims, down slightly from 751,000 the week before. — Jesse Pound 7 HOURS AGO Cramer says a divided White House and Congress is ‘nirvana for growth stocks’ CNBC’s Jim Cramer said a divided government could be a catalyst for growth stocks to rally. “Finally, we can stop fretting about politics and start focusing on business and your money again, because a divided Congress and a blue White House … is nirvana for growth stocks,” the “Mad Money” host said. Democratic nominee Joe Biden is leading President Donald Trump in electoral college votes with Republicans likely to retain control of the Senate after Tuesday’s election. Cramer projects that the status quo Congress will dim chances that lawmakers raise capital gains taxes as the former vice president has proposed in his tax plan. “They don’t want upheaval, and they certainly don’t want higher taxes, something that would’ve been on the agenda if the so-called blue wave had washed over Washington,” Cramer said, noting that it would impact portfolios. “It increasingly looks like Biden’s going to win, but he’ll have to govern with a Republican Senate.” —Tyler Clifford, Maggie Fitzgerald 7 HOURS AGO Election now hinges on close counts in a few states Democratic nominee Joe Biden held 253 electoral votes after racking up wins in Wisconsin and Michigan, leaving him 17 shy of the 270 needed to win the White House, according to NBC News. The presidential election has come down to just a few states: Arizona, Nevada, Georgia, Pennsylvania and North Carolina, which have not been called by NBC News. Follow the election updates here. — Yun Li 7 HOURS AGO Stock futures rally as Wall Street looks for clarity on presidential election U.S. stock futures rose sharply on Thursday morning as traders hoped the winner of the U.S. presidential election would be determined soon. Dow Jones Industrial Average futures were up nearly 400 points, or 1.4%. S&P 500 futures gained 1.8% and Nasdaq 100 futures rallied 2.6%. Late Wednesday, NBC News projected that former Vice President Joe Biden was the winner in Wisconsin and Michigan. That would put him just 17 Electoral College votes away from winning. Stocks were coming off a strong session on Wednesday, with the Nasdaq Composite surging nearly 4%. —Fred Imbert, Pippa Stevens TRENDING NOW Poll worker tabulates absentee ballots at the TCF Center during Election Day in Detroit, Michigan November 3, 2020. Election results and updates: Judge rejects Trump campaign effort to halt Michigan vote count A Clark County election worker scans mail-in ballots at the Clark County Election Department on October 20, 2020 in North Las Vegas, Nevada. Trump campaign to sue in Nevada, claiming votes by dead people and non-residents; Biden lead grows Amazon CEO Jeff Bezos Bezos sells more than $3 billion worth of Amazon shares ‘Never end the job interview before asking this No. 1 question,’ says career expert of 15 years These are the 5 most valuable skills to learn right now, says futurist—and where to find free online courses by TaboolaSponsored LinksFROM THE WEB Omaha legend puts $91 billion on one 5G stock The Motley Fool Man Who Predicted 2020 Crash Says “Now Is The Time” The Legacy Report Medicare Annual Enrollment Plan Comparison Tool: Coverage For 2021 Healthinsurance.com | Sponsored Here’s why the stock market is rallying even though the election outcome is still uncertain The lack of a blue wave makes higher taxes and more regulation less likely, and that’s enough to rally stocks for now. CNBC MORE FROM CNBC Joe Biden is the apparent winner in Wisconsin, a state Trump won in 2016 GOP pollster says the Trump-Biden race comes down to 3 states and Biden only needs to win 1 Democrat incumbent Gary Peters is projected to win Michigan Senate race Mike Bloomberg takes big losses after spending over $100 million in Florida, Ohio and Texas A Biden administration and divided Congress is ‘nirvana for growth stocks,’ Jim Cramer says Longtime bull Jeremy Siegel: Stocks rally on odds of GOP keeping Senate and stopping tax hikes logo Subscribe to CNBC PRO Licensing & Reprints CNBC Councils Supply Chain Values CNBC on Peacock Advertise With Us Join the CNBC Panel Digital Products News Releases Closed Captioning Corrections About CNBC Internships Site Map Podcasts Ad Choices Careers Help Contact News Tips Got a confidential news tip? We want to hear from you. 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