Money Stocks wobble after Fed says interest rates will rise faster

23:07  13 june  2018
23:07  13 june  2018 Source:   msn.com

Energy stocks help push up Toronto index

  Energy stocks help push up Toronto index Energy stocks help push up Toronto indexThe Toronto Stock Exchange's S&P/TSX composite index was up 43.61 points to 16,227.54, after 90 minutes of trading. Gains at the energy sub-index per partly offset by a decline in two of Canada's main cannabis stocks.

At the end of trading it wobbled and ended lower. The dollar weakened, and bond yields turned lower. He said stocks dropped after Powell said rates might rise higher than the Fed expects.

At the end of trading it wobbled and ended lower. The dollar weakened and bond yields turned lower. He said stocks dropped after Powell said rates might rise higher than the Fed expects.

  Stocks wobble after Fed says interest rates will rise faster © Provided by thecanadianpress.com

NEW YORK - U.S. stocks are mixed Wednesday after the Federal Reserve raised interest rates and said it expects to increase rates two more times by the end of the year. Banks are rising, as they stand to make more money on lending. Bond yields are higher and big-dividend stocks like real estate investment trusts are falling.

A federal court ruled that AT&T's $85 billion purchase of Time Warner can proceed, and that's sending ripples through the market as investors bet that hundreds of billions' worth of deals in the media, telecommunications and health care industries stand a better chance of getting approved.

Higher rates, tighter mortgage rules cool Canadian home prices: Reuters poll

  Higher rates, tighter mortgage rules cool Canadian home prices: Reuters poll Higher rates, tighter mortgage rules cool Canadian home prices: Reuters pollHigher borrowing costs and tighter mortgage rules in Canada are seen dampening the country's home price growth more than previously anticipated this year and next, including in the once-hot markets of Toronto and Vancouver, a Reuters poll found.

At the end of trading it wobbled and ended lower. The dollar weakened and bond yields turned lower. He said stocks dropped after Powell said rates might rise higher than the Fed expects.

At the end of trading it wobbled and ended lower. The dollar weakened and bond yields turned lower. He said stocks dropped after Powell said rates might rise higher than the Fed expects.

KEEPING SCORE: The S&P 500 index remained at 2,785 as of 3:20 p.m. Eastern time. On Tuesday the benchmark index closed at its highest level since late January, when investors began worrying about a sharp pickup in inflation. The Dow Jones industrial average lost 19 points, or 0.1 per cent, to 25,301.

The Nasdaq composite also wobbled but turned higher again, rising 23 points, or 0.3 per cent, to 7,726. The Russell 2000 index of smaller-company stocks lost 2 points, or 0.2 per cent, to 1,679. Both of those indexes finished at record highs Tuesday.

Most of the stocks on the New York Stock Exchange traded lower.

FED GOING FOR FOUR: Policymakers at the Federal Reserve plan to raise interest rates four times this year, as they expect inflation to increase at a faster pace and slightly exceed their target of 2 per cent. Their projections show unemployment falling to a 50-year low later this year. The increase in rates Wednesday was the second this year.

U.S. Fed lifts rates amid stronger inflation, drops crisis-era guidance

  U.S. Fed lifts rates amid stronger inflation, drops crisis-era guidance U.S. Fed lifts rates amid stronger inflation, drops crisis-era guidanceIn raising its benchmark overnight lending rate a quarter of a percentage point to a range of between 1.75 percent and 2 percent, the Fed dropped its pledge to keep rates low enough to stimulate the economy "for some time" and signaled it would tolerate above-target inflation at least through 2020.

with small losses after the Federal Reserve raised interest rates and said it might boost those rates at a faster At the end of trading it wobbled and ended lower. The dollar weakened and bond yields turned He said stocks dropped after Powell said rates might rise higher than the Fed expects.

US stock indexes overcame an afternoon wobble to close mostly higher on Wednesday after the Federal Reserve said it would start reducing its huge bond portfolio next month and was still on track to raise interest rates later this year.

The decision sent stocks lower, as many investors hoped the Fed would only raise rates three times this year. But the Fed's view didn't come as a shock after months of signs that economic growth and inflation are picking up.

Bond prices slumped. The yield on the 10-year Treasury note rose to 2.98 per cent after it traded at 2.95 per cent just before the Fed's decision was announced.

The dollar rose to 110.55 yen from 110.33 yen. The euro rose to $1.1773 from $1.1750.

CABLE CONNECTION: Late Tuesday a judge approved AT&T's $85 billion purchase of Time Warner and rejected the government's argument that the deal would stifle competition and lead to higher cable bills. The purchase will give the wireless and cable giant control of CNN, HBO and the Warner Bros. movie studio. Time Warner climbed 2.2 per cent to $98.36 while AT&T lost 5.7 per cent to $32.40.

a screen shot of a computer monitor© Provided by thecanadianpress.com

Media companies rallied. Netflix gained 5 per cent to $382.28 and CBS gained 3.7 per cent to $54.30.

Canada debt-to-income ratio hits two-year low as rates set to rise

  Canada debt-to-income ratio hits two-year low as rates set to rise Canada debt-to-income ratio hits two-year low as rates set to riseCanadian household debt as a share of income slipped in the first quarter to a two-year low, a development sure to please policymakers worried about the pain that rising interest rates will cause.

The Fed said the U.S. economy and the job market continued to improve over the last two months. Oil gains slightly after Fed sees economy growing at a 'moderate rate '. Rates Rise as Fed Begins 2-Day Meeting; Apple Leads Stocks Higher With Earnings Beat.

That's one reason share prices rise when interest rates fall, and fall when rates rise . "Our Fed raised rates last December for the first time in almost a decade and stocks wobbled for a bit, but they're now higher than ever and rates have officially gone up 0.25 (percent)," he says .

WHAT'S NEXT? Investors are waiting for Comcast to officially announce an all-cash offer for Twenty-First Century Fox's entertainment businesses, and Fox surged 6.9 per cent to $43.36 while Comcast rose 0.6 per cent to $32.58. Comcast has said it's preparing an offer but was waiting for the outcome of the AT&T case. Fox has agreed to sell those businesses to Disney for $52.4 billion in stock, setting up the possibility that Disney will have to raise its offer. However Disney added 2 per cent to $106.40.

Investors felt that CVS's effort to buy health insurer Aetna is more likely to go through, and they felt similarly about Cigna's offer for pharmacy benefits manager Express Scripts. T-Mobile USA and Sprint made smaller gains. Investors have been skeptical the government would allow the third- and fourth-largest wireless carriers to combine.

THE QUOTE: Erik Gordon, a professor at the University of Michigan's Ross School of Business, said the ruling is probably a good sign for the two health care deals because, like AT&T and Time Warner, those acquisitions won't reduce the number of companies competing in an industry, unlike a Sprint-T-Mobile merger. But investors might be drawing overly broad conclusions from Judge Richard Leon's ruling, Gordon said.

Energy sector helps lift Toronto market

  Energy sector helps lift Toronto market The energy sector helped Canada's main stock index close higher Monday, while U.S. markets were flat to lower amid rising trade tensions between the U.S. and China. Trade tensions between the U.S. and Canada have also escalated recently after U.S. President Donald Trump threatened to impose tariffs on auto imports.

Stocks lost steam on Wednesday, March 21, after the Federal Reserve announced it would be raising interest rates . The Fed increased borrowing costs for the sixth time since late 2015 in a bid to keep inflation from rising too fast as the economy accelerates.

Bank stocks will move as interest rates rise , but how so is a complicated question. After rattling off a few examples of seemingly contradictory bank- stock reactions to previous Fed - rate changes, Kotowski stated, "The relationship between bank stocks and rates is anything but straightforward."

"The judge's decision is based on some very particular facts of the AT&T-Time Warner case," he said, including the growing popularity of streaming services and greater competition for advertising revenue. "This isn't a case that's about a big sweeping legal philosophy."

ENERGY: Benchmark U.S. crude rose 0.4 per cent to $66.64 a barrel in New York. Brent crude, used to price international oils, gained 1.1 per cent to $76.74 per barrel in London.

Wholesale gasoline added 1.7 per cent to $2.13 a gallon. Heating oil picked up 1.1 per cent to $2.19 a gallon. Natural gas advanced 0.8 per cent to $2.97 per 1,000 cubic feet.

METALS: Gold added 0.1 per cent to $1,301.30 an ounce. Silver gained 0.6 per cent to $16.99 an ounce. Copper inched up 0.1 per cent to $3.25 a pound.

OVERSEAS: Germany's DAX rose 0.4 per cent. France's CAC 40 and the FTSE 100 in Britain took tiny losses.

The Nikkei 225 in Japan rose 0.4 per cent and South Korea's Kospi fell less than 0.1 per cent. Hong Kong's Hang Seng dropped 1.2 per cent.

___

AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at https://apnews.com/search/marley%20jay

Toronto stock index pulls back, loonie lower .
Canada's main stock index retreated from a record high Wednesday to close lower along with other North American markets Thursday. Trade fears were once again top of mind for investors to help push down markets in general, though the retreat in the TSX was in part due to the peak reached a day earlier, said Kash Pashootan, CEO and chief investment officer at First Avenue Investment Counsel Inc.

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