2024-11-22 21:00
Gap surges after raising annual sales forecast Small caps close out at over one-week high Indexes up: Dow 0.97%, S&P 0.35%, Nasdaq 0.16% Three major indexes post weekly gains Nov 22 (Reuters) - Wall Street closed higher on Friday, with all three major indexes posting weekly gains, as investors took comfort from data pointing to robust economic activity in the world's biggest economy. A measure of business activity raced to a 31-month high in November, boosted by hopes for lower interest rates and more business-friendly policies from President-elect Donald Trump's administration next year. The domestically focused small-cap Russell 2000 index (.RUT) , opens new tab outperformed large-cap indexes and rose 1.8%. The index advanced 4.3% for the week, closing at its highest in more than a week. Meanwhile, Alphabet (GOOGL.O) , opens new tab fell 1.7% following Thursday's 4% drop, as the U.S. Department of Justice argued to a judge the company was monopolizing online search. AI bellwether Nvidia (NVDA.O) , opens new tab also slipped 3.2% in choppy trading following its quarterly forecast on Wednesday. An index tracking S&P 500 value stocks (.IVX) , opens new tab rose 0.78% as investors rotated out of their growth peers (.IGX) , opens new tab. "I’ve been looking for this leadership change to go from technology to everything else. I think we may be in the midst of that shift. Small caps are acting much better, values are acting better," said Mark Hackett, Chief of Investment Research at Nationwide. The Dow Jones Industrial Average (.DJI) , opens new tab rose 426.16 points, or 0.97%, to 44,296.51, the S&P 500 (.SPX) , opens new tab gained 20.63 points, or 0.35%, to 5,969.34 and the Nasdaq Composite (.IXIC) , opens new tab gained 31.23 points, or 0.16%, to 19,003.65. Industrial (.SPLRCI) , opens new tab stocks led the S&P, rising 1.36%, while consumer discretionary (.SPLRCL) , opens new tab was the biggest sectoral decliner, falling 0.69%. For the week, the S&P 500 gained 1.68%, the Nasdaq rose 1.73%, and the Dow climbed 1.96%. Expectations on the Federal Reserve's policy move in December have recently swayed between a pause and a cut, as investors weighed the likely impact of Trump's plans on price pressures. There is a 59.6% probability the central bank will lower borrowing costs by 25 basis points, as per the CME Group's FedWatch Tool. Geopolitics were top of mind this week as investors monitored a missile exchange between Ukraine and Russia, after Moscow lowered its threshold for a nuclear retaliation. The markets are also awaiting Trump's Treasury Secretary pick. "The fact that we’ve been calm on a nice, steady stair step pattern higher is very encouraging and reflective of the fact that investors aren’t acting with the emotion that they could be given the amount of uncertainties we’ve faced," Hackett said. In company news, Gap Inc (GAP.N) , opens new tab jumped 12.8% after the Old Navy parent raised its annual sales forecast and said the holiday season was off to a "strong start". Intuit (INTU.O) , opens new tab fell 5.7% after the TurboTax parent projected second-quarter revenue and profit below Wall Street estimates on Thursday. Advancing issues outnumbered decliners by a 3.2-to-1 ratio on the NYSE where there were 532 new highs and 41 new lows. On the Nasdaq, 3,076 stocks rose and 1,271 fell as advancing issues outnumbered decliners by a 2.42-to-1 ratio. The S&P 500 posted 83 new 52-week highs and one new low while the Nasdaq Composite recorded 179 new highs and 85 new lows. Volume on U.S. exchanges was 13.49 billion shares, compared with the 14.65 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-slip-caution-ahead-business-activity-data-geopolitical-tensions-2024-11-22/
2024-11-22 20:55
RIO DE JANEIRO, Nov 22 (Reuters) - Brazilian state-run oil company Petrobras is in talks with Raizen (RAIZ4.SA) , opens new tab, BP (BP.L) , opens new tab and Inpasa for a possible joint venture in ethanol, two sources told Reuters, as the firm's CEO aims big in a comeback to the sector. Petrobras is in talks with four or five firms in the ethanol business, Chief Executive Magda Chambriard told analysts on Friday during a call to present the company's $111-billion strategic plan for 2025-2029. "We have to do something big, compatible with the size of Petrobras, and we are talking to some market players," she said, without naming the firms. Petrobras, BP and Raizen, which is the world's largest sugarcane processor, did not immediately respond to requests for comment. Inpasa, Brazil's largest producer of ethanol from corn, declined to comment. Petrobras' announcement would mark a comeback for the firm to the ethanol sector after having announced in its 2017-2021 strategic plan that it would no longer produce biofuels. "We are returning to ethanol in order to be a relevant operator," said Chambriard, adding she saw no reason for the company not to be in it, as ethanol is the main competitor to gasoline, a fossil fuel set to lose market share, according to Petrobras. The firm plans to invest around $2.2 billion in ethanol distilleries in the next five years, said director of energy transition Mauricio Tolmasquim. Petrobras has not yet decided whether it would focus on ethanol made from corn or from sugarcane, according to him. "The idea is to start big, not start from scratch," Tolmasquim said. "We are talking here about a process that can be quick, because it means associating with someone who is already big," he added. In the presentation, CEO Chambriard also said Petrobras has been delivering its capital expenditure and production within its guidance since August. Her statement comes after Petrobras lowered in August its planned investments this year to between $13.5 billion and $14.5 billion, from $18.5 billion planned previously. "We have a lot of projects, we are expanding our operations in all segments," said Chambriard. Sign up here. https://www.reuters.com/business/energy/petrobras-talks-with-raizen-bp-inpasa-ethanol-venture-sources-say-2024-11-22/
2024-11-22 20:31
WASHINGTON, Nov 22 (Reuters) - The U.S. Department of Energy's loans office said on Friday it has finalized a loan of $1.3 billion to ENTEK Lithium Separators to finance a plant in Indiana for making lithium-ion battery separators used mostly in electric vehicles. WHY IT'S IMPORTANT The Loan Programs Office is racing to finalize billions of dollars in loans to companies developing cutting-edge technologies expected to help speed an energy transition and curb climate change. The loan was offered conditionally in July through the LPO's Advanced Technology Vehicles Manufacturing Loan Program, which that has $40 billion in direct lending authority. It is uncertain whether President-elect Donald Trump would finalize any outstanding LPO loans if the administration of President Joe Biden does not complete pending loans before leaving office on Jan. 20. Trump's incoming administration plans to target federal regulations that aim to make vehicles more energy-efficient and spark a shift toward EVs. WHAT ARE BATTERY SEPARATORS? Battery separators play a key role in the performance and safety of lithium-ion batteries. Separators produced at the project in Terre Haute, Indiana, will accommodate all existing lithium-ion EV battery chemistries, the LPO has said. BY THE NUMBERS The project is expected to create 763 construction jobs and 635 operational jobs, the LPO said. The Department of Energy estimates that by 2030, the North American lithium-ion EV battery industry will require annual separator production of 7 billion to 10 billion square meters. Once complete, the ENTEK plant is expected to have the capacity to manufacture 1.72 billion square meters of separator material annually for the North American EV market. Sign up here. https://www.reuters.com/business/energy/entek-gets-13-billion-us-loan-ev-battery-separator-plant-2024-11-22/
2024-11-22 20:15
Canadian dollar notches weekly gain of 0.8% Retail sales rise 0.4% in September Price of US oil settles 1.6% higher 10-year yield touches a 4-month high TORONTO, Nov 22 (Reuters) - The heavily shorted Canadian dollar steadied against its U.S. counterpart on Friday, with the currency holding on to a weekly gain as upbeat domestic retail sales data contributed to reduced expectations for Bank of Canada interest-rate cuts. The loonie was trading nearly unchanged at 1.3975 per U.S. dollar, or 71.56 U.S. cents, after moving in a range of 1.3959 to 1.4020. For the week, the currency was up 0.8%, its biggest weekly gain since August. "The beginning of the week, the market was just crowded short," said Erik Bregar, director, FX & precious metals risk management at Silver Gold Bull. "If you're short you need a lot of bearish fuel and it's not there right now." Canadian retail sales rose 0.4% in September from August as consumers spent more at grocery stores and supermarkets, while preliminary data showed an October gain of 0.7%. It follows hotter-than-expected consumer price index data on Tuesday and the government's proposal on Thursday of C$6.3 billion ($4.5 billion) in new spending that analysts expect to boost the economy. Investors have largely set aside expectations for another unusually large half-percentage-point rate cut by the BoC next month after the central bank cut by that magnitude in October. By the end of 2025, the market is pricing in 75 basis points of further easing, down from 100 basis points before Tuesday's inflation data. "This week's CPI number has been enough to make the entrenched short-position reconsider over the next few weeks," Bregar said. The price of oil, one of Canada's major exports, settled 1.6% higher at $71.24 a barrel on the intensifying war in Ukraine this week, while the safe-haven U.S. dollar (.DXY) , opens new tab soared against a basket of major currencies. The Canadian 10-year yield was down 1.3 basis points at 3.445%, after earlier touching its highest level since July 11 at 3.493%. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-notches-biggest-weekly-gain-since-august-2024-11-22/
2024-11-22 19:46
WASHINGTON, Nov 22 (Reuters) - President-elect Donald Trump is expected to offer former U.S. Senator Kelly Loeffler the agriculture secretary job in his administration, CNN reported on Friday. Trump was due to meet with Loeffler on Friday afternoon at his Palm Beach, Florida, residence, CNN said. Reuters was not able to confirm the report. Trump chose Loeffler, a staunch supporter and donor, to co-chair his inaugural committee after he won the Nov. 5 U.S. presidential election. If confirmed, Loeffler would lead a 100,000-person agency with offices in every county in the country, whose remit includes farm and nutrition programs, forestry, home and farm lending, food safety, rural development, agricultural research, trade, and more. The nominee's agenda would carry implications for American diets and wallets, both urban and rural. Department of Agriculture officials and staff negotiate trade deals, guide dietary recommendations, inspect meat, fight wildfires, support rural broadband, and much more. Loeffler was appointed to the U.S. Senate seat from Georgia in 2019 to succeed former Senator Johnny Isakson, who retired. She lost it to Democrat Raphael Warnock in a special election in 2021. During her stint in the U.S. Senate, Loeffler served briefly on the Senate Agriculture Committee. The U.S. Senate Ethics Committee in 2020 cleared Senator Loeffler of wrongdoing in connection with stock trades, her office said, after the wealthy Republican was criticized over share sales during the coronavirus outbreak. Loeffler and her husband's net worth has been estimated at more than $500 million. If confirmed, Loeffler would advise the administration on how and whether to implement clean fuel tax credits for biofuels at a time when the sector is hoping to grow through the production of sustainable aviation fuel. The nominee would also guide next year's renegotiation of the U.S.-Mexico-Canada trade deal, in the shadow of disputes over Mexico's attempt to bar imports of genetically modified corn and Canada's dairy import quotas. Trump has said he again plans to institute sweeping tariffs that are likely to affect the farm sector. Loeffler, then a co-owner of the women's basketball team Atlanta Dream, came under fire in 2020 when she sent a letter to the WNBA commissioner objecting to the league's decision to campaign for racial justice and the "Black Lives Matter" movement. Loeffler faced months of activism from WNBA players who called for her removal from the ownership team. The team was sold in 2021. Sign up here. https://www.reuters.com/world/us/trump-expected-offer-loeffler-agriculture-secretary-role-cnn-reports-2024-11-22/
2024-11-22 19:40
Former SEC commissioner Atkins, former SEC counsel Stebbins are contenders, sources say Naming of Treasury secretary likely to precede decision on SEC Crypto industry seeks SEC policy overhaul, ending Gensler's crackdown Nov 22 (Reuters) - Robinhood Markets' (HOOD.O) , opens new tab Chief Legal Officer Dan Gallagher on Friday withdrew from consideration for chair of the Securities and Exchange Commission in the Trump administration, leaving other Republican former SEC officials among the top candidates. "I've made it clear to the relevant people that I'm not interested in being considered for the role," he told CNBC. Gallagher said in a statement he was committed to Robinhood and the retail brokerage's customers. Industry sources said restrictions on public officials' investments were a potential deterrent for Gallagher, who served as an SEC commissioner from 2011 to 2015. Gallagher was the frontrunner for the job, Reuters and other media outlets reported earlier this month, citing sources familiar with the matter. His candidacy was supported by cryptocurrency executives, an important source of campaign finance for President-elect Donald Trump. Trump spokesperson Karoline Leavitt did not comment directly on Gallagher's announcement but said Trump was still deciding who would serve in his administration. Gallagher's decision to bow out opens the door for other contenders. Reuters and other media have reported former SEC commissioner Paul Atkins, CEO of consultancy Patomak Global Partners, and Willkie Farr & Gallagher law firm partner Robert Stebbins, who served as SEC general counsel during Trump's first administration, were also being considered for SEC chair. A person with knowledge of the matter said on Thursday evening that they were still contenders. Neither Atkins nor Stebbins immediately returned a request for comment Another potential candidate is Teresa Goody Guillén, partner at law firm BakerHostetler and co-lead of its blockchain team, Coindesk reported , opens new tab on Tuesday. She declined to comment when contacted by Reuters on Wednesday and did not immediately respond to a request for comment on Friday. The cryptocurrency industry is seeking a complete overhaul of SEC crypto policy, ending a crackdown by the SEC's current chair, Gary Gensler, who leaves office in January before Trump's inauguration. Atkins, who served on Trump's transition team in 2016 when he was also a contender for SEC chair, is a crypto enthusiast, while Stebbins has been criticized by some crypto executives for his role in crypto enforcement actions during his time at the agency. Trump's transition team has spoken with as many as a dozen potential candidates for the job, according to multiple sources and media reports. A decision is likely to wait until a Treasury secretary is announced. Sign up here. https://www.reuters.com/markets/us/robinhoods-chief-legal-officer-gallagher-rules-out-becoming-sec-chair-cnbc-2024-11-22/
