2024-03-12 22:58

Feb headline CPI rises 0.4% Oracle jumps as AI demand reignites cloud business momentum Indexes: Dow up 0.6%, S&P 500 up 1.1%, Nasdaq up 1.5% NEW YORK, March 12 (Reuters) - U.S. stocks ended sharply higher on Tuesday, with the S&P 500 registering a record high close as Oracle shares surged and consumer price data failed to dampen investors' hopes of interest rate cuts in the coming months. Shares of Oracle (ORCL.N) , opens new tab jumped 11.7% and reached a record high, a day after it reported upbeat quarterly results and said it is set to make a joint announcement with artificial intelligence chip giant Nvidia (NVDA.O) , opens new tab. Nvidia shares gained 7.2% and an index of semiconductors (.SOX) , opens new tab rose 2.1% and snapped a two-day losing streak. The Labor Department reported that the Consumer Price Index (CPI) rose 0.4% last month after climbing 0.3% in January. Excluding volatile food and energy components, consumer prices increased 0.4% in February after rising by the same margin in January. "Investors have gotten comfortable with the notion that it's not about when the Fed will lower rates but rather by how much, and a delay - whether it happens in May like many were initially hoping or in September - ultimately doesn't matter," said Oliver Pursche, senior vice president and advisor for Wealthspire Advisors in Westport, Connecticut. "It's that they will and that a less restrictive environment is coming." Traders now see a 70% chance of the first rate cut coming in June, the CME FedWatch Tool showed, versus 71% ahead of the inflation report. The Dow Jones Industrial Average (.DJI) , opens new tab rose 235.74 points, or 0.61%, to 39,005.4. The S&P 500 (.SPX) , opens new tab gained 57.3 points, or 1.12%, at 5,175.24 and the Nasdaq Composite (.IXIC) , opens new tab added 246.36 points, or 1.54%, at 16,265.64. "If you look at economic data, it continues to be pretty strong," Pursche added. "And from my perspective as a consumer, employee and investor, I'd rather have a strong economy and slightly elevated interest rates than a weak economy that requires stimulus." Producer price data is due later this week. On the downside, shares of Boeing (BA.N) , opens new tab fell 4.3%. Boeing told employees in a memo on Tuesday it is adding weekly compliance checks for every 737 factory work area and additional audits of equipment to reduce quality problems. The U.S. Federal Aviation Administration has curbed Boeing production following the mid-air panel blowout on a new Alaska Airlines 737 MAX 9 jet on Jan. 5. Also, U.S. carriers warned that their plans to increase capacity were in doubt due to jet delivery delays from Boeing. Shares of Southwest Airlines (LUV.N) , opens new tab were down 14.9%. Volume on U.S. exchanges was 10.97 billion shares, compared with the 12.07 billion average for the full session over the last 20 trading days. Advancing issues outnumbered decliners on the NYSE by a 1.28-to-1 ratio; on Nasdaq, a 1.20-to-1 ratio favored decliners. The S&P 500 posted 48 new 52-week highs and no new lows; the Nasdaq Composite recorded 59 new highs and 118 new lows. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/us/sp-500-nasdaq-futures-edge-higher-ahead-key-inflation-test-2024-03-12/

2024-03-12 22:37

WARSAW, March 12 (Reuters) - Polish and American leaders discussed developing cooperation on nuclear energy, Polish President Andrzej Duda told reporters on Tuesday after a delegation led by him and Prime Minister Donald Tusk met with U.S. President Joe Biden. Poland plans to invest in nuclear energy to reduce its carbon emissions and phase out coal. The previous government of Law and Justice (PiS) had chosen Westinghouse Electric Co as the supplier of technology. The company later teamed up with the largest U.S. engineering firm - Bechtel. Tusk's cabinet confirmed that Poland needs nuclear power, but said it would audit the project started by its predecessors. "Tomorrow I'm going to Georgia, where I will visit the most modern American nuclear power plant," Duda said. "A very similar one will be built ... in our country. We also talked about this today ... about developing this cooperation when it comes to conventional nuclear energy and climate protection." Warsaw planned to build its first nuclear power plant on the Baltic coast by 2033, but is now analyzing whether the project can be finished on time amid delays it suffered under the previous government. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. https://www.reuters.com/business/energy/poland-discusses-cooperation-nuclear-power-with-us-says-polish-president-2024-03-12/

2024-03-12 21:51

March 13 (Reuters) - A look at the day ahead in Asian markets. A tech-fueled whoosh pushed Wall Street higher on Tuesday, which should give Asian markets a good foundation to build on at the open on Wednesday, but spiking U.S. bonds yields , opens new tab on the back of hotter-than-expected U.S. inflation data could limit the upside. There's nothing on the local economic and policy calendar likely to move the Asian market dial much on Wednesday, with only New Zealand food prices, Indian trade and Indonesia consumer confidence data scheduled for release. Investor sentiment across Asia seems to be holding up well. The MSCI Asia ex-Japan index rose nearly 1% to a seven-month high on Tuesday, Chinese stocks hit their highest in nearly four months, and the correction in Japan has fizzled out for now. All that was before the rebound on Wall Street - the S&P 500 rose to a new record close and the Nasdaq gained 1.5%, boosted by a 7% bounce in market darling Nvidia and 12% surge in Oracle. This was despite a solid rise in U.S. bond yields - the 10-year yield chalked up its biggest increase in three weeks - after consumer inflation figures for February came in slightly hotter than expected. U.S. equities have not risen often on days when Treasuries have sold off, so it may be premature to read too much into it. But the bullish view would be that it highlights the confidence underpinning the market, the resilience of tech and AI, and the potential upside still to run. The question for Asian markets is whether these tailwinds offset the headwinds of higher bond yields and stronger dollar. Improving domestic sentiment helped lift Chinese markets on Tuesday after the country's No.2 property developer China Vanke said the impact of a Moody's ratings downgrade on its financing activities was "controllable". Successfully tackling the property sector crisis is key to reviving wider economic growth, fighting off deflation, and reversing the torrent of capital outflows. It's a tall order but the 13% rebound in Chinese stocks in the past month points to some degree of optimism. Bank of Japan Governor Kazuo Ueda, meanwhile, cooled some of the bubbling optimism on Japan's economy on Tuesday, telling lawmakers that the economy was recovering but also showing some signs of weakness. The slightly bleaker remarks come ahead of the BOJ's policy meeting next week where the board will debate whether the outlook is bright enough to phase out its massive monetary stimulus. Ueda's remarks helped push the two-year Japanese yield back from its 13-year high, while the yen had its biggest fall in a month. Here are key developments that could provide more direction to markets on Wednesday: - New Zealand food prices (February) - India trade (February) - Indonesia consumer confidence (February) Get a look at the day ahead in Asian and global markets with the Morning Bid Asia newsletter. Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-03-12/

2024-03-12 21:08

BUENOS AIRES, March 12 (Reuters) - Intense rains in Argentina are beginning to leave the soil too wet in key agricultural areas, which could also make it harder to harvest the 2023/24 soybean crop, a climate specialist said on Tuesday, though the conditions could be good for the 2024/25 wheat crop. The heavy rains also caused flooding in parts of the city of Buenos Aires, with residents wading through up to waist-high waters and storms bringing "a lightning strike every second," meteorologists said. In the past 24 hours, Argentina's main agricultural regions have seen between 15 mm and 75 mm of rain, according to the national meteorological service, which predicts more over the next few days. Growers in the Buenos Aires, Santa Fe and Entre Rios provinces have seen between 140 mm and 150 mm of rains so far this month, which is above average, meteorologist German Heinzenknecht said in an interview, adding the areas are likely to see similar amounts in the rest of March. "We're going to potentially close out March with excessive wetness in a large part of the core agricultural area," said Heinzenknecht, a meteorologist at the Applied Climatology Consulting Firm (CCA). "The harvest in some sectors might not be so easy due to this issue," he added. In coming weeks, as the Southern Hemisphere summer turns to autumn, farmers will begin to harvest soybeans, which are largely turned into oil and flour. Argentina is a top global supplier of both. With high soil humidity and combines unable to trudge through the mud, soy plants could lose beans from pods that open, or beans could begin to sprout or fungi could begin to grow. "The important thing now is for the rains to not keep going in April," Heinzenknecht said, adding less precipitation is forecast for the month. However, Agriculture Secretary Fernando Vilella told reporters at the U.S. Chamber of Commerce in Argentina that the recent rains for now continue to favor soybean growth. "It is raining and this is good to ensure the soybeans' final productivity," Vilella said. The Rosario grains exchange estimates the 2023/24 soybean harvest at 49.5 million metric tons. GOOD NEWS FOR WHEAT The abundant rains are good for wheat planting, which begins in May. "The outlook is favorable, because we have to replenish the soil, we have to keep it loaded (with water) so that during the fall there are not problems with wheat sowing," Heinzenknecht said. Argentina is a major wheat exporter. Last season, a drought caused a smaller wheat harvest, which closed out at 14.5 million tons, according to the Rosario exchange. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/americas/argentina-downpour-drenches-crop-fields-flash-floods-buenos-aires-2024-03-12/

2024-03-12 20:24

RIO DE JANEIRO, March 12 (Reuters) - Police in Brazil arrested a man on Tuesday after he hijacked a bus and shot two people at a bus station in Rio de Janeiro before holding 17 people hostage for about three hours. The man, who was not identified by authorities, handed himself over to police, according to a spokesperson for the Rio police. The bus, which had been scheduled to depart to the city of Juiz de Fora in Minas Gerais state, was waiting at the station platform on Tuesday afternoon when the suspect broke into it after shooting and injuring two people outside the bus, spokesperson Marco Andrade told journalists. Andrade said the man was arrested and all the hostages, who included elderly people and children, were freed. Thefts and hijacks targeting buses near Rio's main bus station have become common this year, with the buses in some cases being taken to the city's poor favela neighborhoods. The two people hurt by the gunshots received medical care, with one of them taken to a hospital, according to the police. Local TV GloboNews said the man was wanted by police and was trying to escape from Rio by bus, but authorities did not confirm these details. Rio's bus station said in a statement earlier on Tuesday that its operations were fully suspended upon police orders. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/americas/man-hijacks-bus-rio-shoots-two-2024-03-12/

2024-03-12 20:20

TSX ends up 0.3% at 21,831.02 Posts highest closing level since April 2022 Tech and industrials rise 0.8% Utilities sector loses 1.1% March 12 (Reuters) - Canada's main stock index rose on Tuesday to a near two-year high, led by gains for technology and industrial shares, as investors shrugged off the second straight month of firmer U.S. inflation readings. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended up 61.80 points, or 0.3%, at 21,831.02, its highest closing level since April 2022. U.S. consumer prices increased solidly in February amid higher costs for gasoline and shelter, suggesting some stickiness in inflation that further diminishes the chances of a Federal Reserve interest rate cut before June. "Equity markets don't seem that fazed by the disappointing result. They recognize that this is not a great result, but it's not bad enough to completely knock the Fed off track", said Doug Porter, chief economist at BMO Capital Markets. "There's still the prospect for interest rate cuts sometime around the middle part of the year." The technology sector rose 0.8%, with e-commerce company Shopify (SHOP.TO) , opens new tab gaining 1.9%. Industrials were also up 0.8% and heavily-weighted financials added 0.2%. National Bank of Canada (NA.TO) , opens new tab denied a media report saying it was in talks to sell its Cambodian unit. The bank's shares rose 0.3%. The high-dividend paying utilities sector lost 1.1% as bond yields climbed, while the materials sector gave back some recent gains. It fell 0.6%, as gold's record-setting rally lost some momentum. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/tsx-futures-gain-oil-boost-us-inflation-print-focus-2024-03-12/