2024-10-08 20:43

Oct 8 (Reuters) - Leslie has regained its strength into a hurricane, the U.S. National Hurricane Center said on Tuesday. The hurricane was located about 1,490 miles (2400 km) west-northwest of the southernmost Cabo Verde islands, packing maximum sustained winds of 75 mph (120 km/h), the Miami based forecaster said. Sign up here. https://www.reuters.com/business/environment/leslie-strengthens-back-into-hurricane-nhc-says-2024-10-08/

2024-10-08 20:37

S&P, Nasdaq recover ground lost after Monday's sell-off Tech names help push indexes higher US-listed shares of Chinese companies fall PepsiCo rises after results Indexes up: Dow 0.3%, S&P 500 0.97%, Nasdaq 1.45% Oct 8 (Reuters) - Wall Street's benchmarks finished up on Tuesday, recouping some of the previous session's losses, as investors bought back in to technology stocks and investors shifted their focus to upcoming inflation data and the start of third-quarter earnings season. All three of the main indexes suffered a sell-off on Monday, falling roughly 1% each, as they were pressured by surging Treasury yields, escalating Middle East tensions, and a re-evaluation of U.S. rate expectations. The easing of Treasury yields somewhat on Tuesday, however, meant investors were drawn to high-growth stocks, which benefit from lower debt costs to fuel their growth, such as technology companies. The information technology index (.SPLRCT) , opens new tab led gainers among the S&P 500 sectors, jumping 2.1%. It was aided by advances of 6.6% and 5.1%, respectively, by Palantir Technologies (PLTR.N) , opens new tab and Palo Alto Networks (PANW.O) , opens new tab. Heavyweight tech names were also buoyant, helping to push both the Nasdaq (.IXIC) , opens new tab and the S&P 500 (.SPX) , opens new tab back above levels they finished at last week - albeit fractionally, in the case of the latter. Nvidia (NVDA.O) , opens new tab was the pick of the so-called Magnificent Seven tech stocks, climbing 4.1% for its largest one-day percentage increase in a month. There were also gains for Apple (AAPL.O) , opens new tab, Tesla (TSLA.O) , opens new tab and Meta Platforms (META.O) , opens new tab, which all rose between 1.4% and 1.8%. On Tuesday, the S&P 500 (.SPX) , opens new tab rose 55.19 points, or 0.97%, to 5,751.13 points, while the Nasdaq Composite (.IXIC) , opens new tab climbed 259.01 points, or 1.45%, to 18,182.92. The Dow Jones Industrial Average (.DJI) , opens new tab gained 126.13 points, or 0.30%, to 42,080.37. While the abatement of rising Treasury yields helped tech stocks, it is still interest rate policy that is guiding traders and the U.S. equity markets. Investors have been locked in all year on the U.S. Federal Reserve and how it plans to deliver its long-expected bout of interest rate cuts, with each new economic data set studied for how it could influence the thinking of the central bank. Last week's data releases, including Friday's stronger-than-expected jobs report, had prompted investors to trim their rate cut bets slightly, albeit leaning more toward a 25 basis-point cut at the next Fed meeting in November, as opposed to 50 bps. Traders have now priced in a nearly 89% chance of a 25 basis-point interest rate cut in November, according to CME FedWatch. Markets now await consumer price index data, due this Thursday, for the next signpost on the path of interest rates. "I do think (Friday's) labor market report, and the CPI report combined, are the two primary items for the Federal Reserve heading in to their next meeting," said Jason Pride, chief of investment strategy and research at Glenmede. He added that if the CPI lands anywhere in the ballpark of what is expected, that would portend a 25 bps November cut. Most S&P sectors gained, although two ended in negative territory. One was the materials sector (.SPLRCM) , opens new tab, which fell 0.4% as metal prices slipped on waning optimism over China's stimulus measures. U.S.-listed shares of Chinese companies also slid, tracking losses in domestic stocks. Shares of Alibaba Group , JD.com and PDD Holdings (PDD.O) , opens new tab slumped between 5.4% and 7.5%. Energy (.SPNY) , opens new tab was the heaviest decliner though, slipping 2.6% in its biggest one-day loss since Aug. 20, as oil prices retreated following Monday's rally. Third-quarter earnings are also coming in to focus, with major banks scheduled to report this Friday. The estimated earnings growth rate for the S&P 500 is 5%, according to LSEG estimates. PepsiCo (PEP.O) , opens new tab gained 1.9% after the snack maker trimmed its forecast for annual sales growth, but reported adjusted earnings per share above estimates. Volume on U.S. exchanges was 11.57 billion shares, compared with the 12.1 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-tick-higher-with-inflation-data-earnings-view-2024-10-08/

2024-10-08 20:34

NEW YORK, Oct 8 (Reuters) - Global and U.S. oil demand growth next year will not meet prior forecasts due to weakening economic activity in China and North America, the U.S. Energy Information Administration (EIA) said on Tuesday in its Short-Term Energy Outlook report. World oil demand is expected to grow 1.2 million barrels per day to 104.3 million bpd next year, about 300,000 bpd below prior forecasts, the EIA said. Demand would come in at around 103.1 million bpd this year, a 20,000 bpd reduction on prior forecasts, the EIA said. The administration's reductions to this year's outlook reflect declining imports and refinery runs in China, the top buyer of crude in international markets, the EIA said. Cuts to next year's forecasts are due to concerns of weakening industrial production and manufacturing growth in the U.S. and Canada, the agency said. The EIA expects U.S. oil demand to rise to 20.5 million barrels per day (bpd) next year, down from its previous forecast of 20.6 million bpd. U.S. demand forecast for 2024 was unchanged at 20.3 million bpd, according to the EIA report. The world's leading oil market forecasters have been far apart this year on demand growth estimates, owing to differences on China and on estimates of the pace of the transition to alternative energy sources. The Paris-based International Energy Agency expects oil demand to grow by 950,000 bpd next year, whereas the latest estimate from the Organization of the Petroleum Exporting Countries is for a 1.74 million bpd jump. The three are also still a long way apart on demand growth forecasts for 2024, with just a few months left in the year. The EIA sees global oil demand growth at 940,000 bpd in 2024, the IEA pegs it at 900,000 bpd- while OPEC forecasts just over 2 million bpd of growth. U.S. oil production is also expected to grow to smaller records both this year and next year, the EIA said. Currently the top oil producer in the world, the U.S. is expected to pump 13.22 million bpd this year, down from a prior forecast of 13.25 million bpd, the EIA said. U.S. oil output in 2025 is now expected to average 13.54 million, down about 1% from the prior forecast of 13.67 million bpd, the EIA said. EIA also lowered its forecasts for oil prices: it now expects U.S. crude oil to average around $76.91 per barrel in 2024, a 2.4% cut on its prior forecast, whereas Brent prices are expected to average $80.89 per barrel this year, 2.3% lower than the previous forecast. Sign up here. https://www.reuters.com/markets/commodities/eia-slashes-us-global-oil-demand-forecasts-2025-2024-10-08/

2024-10-08 20:20

Oct 8 (Reuters) - Crypto.com filed a lawsuit against the U.S. Securities and Exchange Commission on Tuesday, alleging that the federal agency is overstepping its jurisdiction by regulating the cryptocurrency industry. The crypto trading platform said its move follows the receipt of a "Wells notice" from the top U.S. markets regulator on the grounds that tokens traded on its platform qualified as securities. A Wells notice is a formal declaration that the regulator's staff intend to recommend an enforcement action. The SEC declined to comment. Crypto companies have long accused the SEC of overreach and of violating its jurisdiction, while the agency has claimed that the industry is flouting securities laws intended to protect investors and other market participants. "Our lawsuit contends that the SEC has unilaterally expanded its jurisdiction beyond statutory limits and separately that the SEC has established an unlawful rule that trades in nearly all crypto assets are securities transactions," Crypto.com said. Retail trading platform Robinhood's crypto business, major U.S. crypto exchange Coinbase and NFT marketplace OpenSea are among the companies in the digital assets industry that have received similar notices from the SEC. Crypto.com's case, filed in a federal court in Tyler, Texas, also names SEC Chair Gary Gensler and four other commissioners as defendants. Separately, the company has filed a petition with the Commodity Futures Trading Commission and the SEC, seeking a joint interpretation to confirm that certain cryptocurrency derivative products are exclusively regulated by the CFTC. The CFTC did not immediately respond to a Reuters request for comment. Sign up here. https://www.reuters.com/legal/cryptocom-sues-us-sec-after-receiving-legal-threat-regulator-2024-10-08/

2024-10-08 19:21

Oct 8 (Reuters) - Energy companies began shutting down their pipelines and fuel-delivery terminals in Tampa, Florida, on Tuesday ahead of Hurricane Milton's expected landfall on Wednesday. Kinder Morgan (KMI.N) , opens new tab said it shut down its Central Florida Pipeline system, two small lines that carry gasoline, diesel and other fuels from Tampa to Orlando. It also closed all bulk-fuel delivery terminals in the Tampa area. "While the Tampa terminal is shut down, our Orlando truck racks are expected to remain operational until winds exceed 35 miles per hour," Kinder Morgan added. Refiner Citgo (PDVSAC.UL) also shut down its Tampa terminal, the company said in an email, while Buckeye said it suspended operations at its Tampa terminal facilities. Hurricane Milton was last located 520 miles (840 km) southwest of Tampa, packing maximum sustained winds of 155 mph (250 kph). Milton is forecast to retain its major hurricane status and expand in size as it approaches the west coast of Florida. Sign up here. https://www.reuters.com/business/energy/hurricane-milton-prompts-energy-companies-shut-down-tampa-operations-2024-10-08/

2024-10-08 17:54

Canadian dollar falls 0.4% against the greenback Touches its weakest since Aug. 19 at 1.3675 Price of U.S. oil decreases 4% 10-year yield touches a 10-week high TORONTO, Oct 8 (Reuters) - The Canadian dollar weakened to a seven-week low against its U.S. counterpart on Tuesday as the price of oil fell 4% and investors reassessed the outlook for Federal Reserve interest rate cuts. The loonie was trading 0.4% lower at 1.3665 to the U.S. dollar, or 73.18 U.S. cents, after touching its weakest intraday level since Aug. 19 at 1.3675. The U.S. dollar (.DXY) , opens new tab held steady near seven-week highs against a basket of major currencies as investors bet on a slower pace of interest rate cuts from the Fed after stronger-than-expected U.S. jobs data on Friday. Concerns about the conflict in the Middle East and China's economy also lent support to the greenback. "The real focus of the market over the last 48 hours has been the U.S. economy and the uncertainty from the Middle East," said Darren Richardson, chief operating officer at Richardson International Currency Exchange. "When we see oil take that big of a tumble ... that's also contributing to that weakness in the Canadian dollar." The price of oil fell to $74.02 a barrel, giving back some recent gains, as fears of supply interruptions from the conflict between Israel and Iran and a massive Gulf of Mexico hurricane eased. Oil is one of Canada's major exports, which declined in August, contributing to a widening in the trade deficit to C$1.1 billion ($806 million). Analysts had forecast a C$500 million deficit. Canadian government bond yields were mixed across a less-inverted curve. The 2-year fell 1.9 basis points to 3.272%, while the 10-year was up 1.6 basis points at 3.258%, after earlier touching its highest level since July 30 at 3.273%. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-weakens-7-week-low-oil-tumbles-2024-10-08/