WORLD

Stock market today: Markets hold steady ahead of a busy week of updates

Jul 9, 2023, 9:25 PM | Updated: Jul 10, 2023, 6:42 am

NEW YORK (AP) — Stocks are largely standing still on Wall Street ahead of a week with updates on where inflation and corporate profits are heading. The S&P 500 was up 0.1% in early trading Monday. The Dow rose 79 points, or 0.2%, and the Nasdaq composite was little changed. The big question hanging over markets is whether the U.S. can avoid a long-predicted recession despite much higher interest rates meant to tame inflation. The hope is that inflation is easing enough for the Federal Reserve to stop raising rates. A report Wednesday will offer the latest monthly update on inflation at the consumer level.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

Trading is uneven on Wall Street as the corporate earnings season kicks off and ahead of new inflation data for the Federal Reserve to consider before its next policy meeting later this month.

Futures for the Dow Jones Industrial Average ticked up 0.1% before the bell, while S&P 500 were essentially unchanged.

U.S. consumer prices for June are due out on Wednesday, with forecasts calling for an annual increase of just over 3% compared with 4% the month before. The Federal Reserve has been raising interest rates in an effort to cool the economy and bring inflation down to its target level of 2%.

On Thursday, the government reports on prices at the wholesale level.

Sprinkled throughout the week will be new quarterly earnings reports from Delta Air Lines, PepsiCo and big banks like Wells Fargo, JPMorgan and Citigroup.

On Friday, Wall Street drifted to a mixed finish after data suggested the U.S. job market is still warm enough to keep the economy growing but maybe not so hot that it stokes inflation much higher. U.S. employers added 209,000 jobs last month, a slowdown from May’s hiring of 306,000.

Wage growth held steady last month, instead of slowing as economists expected, for example. While workers would rather have the reported 4.4% gain in average hourly earnings from a year earlier than the 4.2% that was predicted, Wall Street’s fear is the Fed will see too-strong wage growth as keeping upward pressure on inflation.

“Job growth is slowing. Not at all surprising following the massive layoffs happening across the country,” Clifford Bennett of ACY Securities said in a commentary. “In a nutshell, while jobs growth is slowing it is not enough to make the Fed happy by a big margin.”

A lot is riding on whether the economy can navigate the narrow pathway to avoid a long-predicted recession. It needs to keep growing despite much higher interest rates instituted by the Federal Reserve to bring down inflation.

As expected, U.S. Treasury Secretary Janet Yellen wrapped up a fence-mending visit to Beijing on Sunday with no major agreements or breakthroughs in strained ties. But Yellen said relations were on a “surer footing,” and the two sides would continue to talk despite disputes over many issues including access to advanced technologies, Chinese territorial ambitions and allegations of human rights abuses.

In Europe at midday, Germany’s DAX gained 0.6%, while the CAC 40 in Paris rose 0.7%. Britain’s FTSE 100 moved 0.4% higher.

China reported Monday that producer prices fell 5.4% in June from a year earlier, down from a 4.6% drop in May, as growth in the U.S. and Europe continued to taper off under a barrage of interest rate hikes meant to snuff out high inflation. Consumer price inflation was flat, also suggesting weakening of demand as activity in the world’s second largest economy slows.

China’s economy has slowed faster than hoped for after an initial surge in growth as the country bounced back from disruptions from the COVID-19 pandemic.

“The releases of the latest indicators from China did little to quell concerns about the lethargic state of economic activity,” Tim Waterer of KCM Trade said in a report. .He added that “with deflationary troubles brewing for the world’s second largest economy, one wonders how long it will be before the central bank steps in to provide something more meaningful on the stimulus side.”

Weak data tends to lead Chinese investors to anticipate such market support. Hong Kong’s Hang Seng gained 0.6% to 18,479.72 and the Shanghai Composite index edged 0.2% higher to 3,203.70.

Tokyo’s Nikkei 225 slipped 0.6% to 32,189.73, while the Kospi in Seoul shed 0.2% to 2,520.70. Australia’s S&P/ASX 200 declined 0.5% to 7,004.00.

India’s Sensex edged 0.1% higher, while the SET in Bangkok advanced 0.3%.

In other trading Monday, U.S. benchmark crude oil fell 48 cents to $73.38 per barrel in electronic trading on the New York Mercantile Exchange. It added $2.06 to $73.86 per barrel on Friday.

Brent crude, the pricing basis for international trading, gave up 42 cents to $78.05 per barrel.

The U.S. dollar ticked down to 142.14 Japanese yen from 142.17 yen. The euro slipped to $1.0960 from $1.0967.

On Friday, the S&P 500 lost 0.3% while the Dow gave up 0.6%. The Nasdaq composite edged 0.1% lower and the Russell 2000 index of smaller stocks rose 1.2%.

——

Kurtenbach reported from Bangkok; Ott reported from Silver Spring, Md.

World

FILE - Coco Gauff of the U.S. plays a shot against Poland's Iga Swiatek during their semifinal matc...

Associated Press

Coco Gauff to be female flag bearer for US team at Olympic opening ceremony, joining LeBron James

PARIS (AP) — Tennis star Coco Gauff will join LeBron James as a flag bearer for the US Olympic team at Friday’s opening ceremony. Gauff, the reigning US Open champion, is set to make her Olympic debut and will be the first tennis athlete to carry the US flag. She and James were chosen by […]

15 hours ago

Utah Gov. Spencer Cox speaks about Salt Lake City's bid to host the 2034 Winter Olympics, during th...

Associated Press

IOC awards 2034 Winter Games to Salt Lake City. Utah last hosted the Olympics 32 years ago

PARIS (AP) — Salt Lake City will be an Olympics host again after the IOC formally awarded the 2034 Winter Games to the United States bid on Wednesday. The capital city of Utah was the only candidate since the International Olympic Committee gave Salt Lake City exclusive negotiating rights last year in the process that […]

15 hours ago

FILE - Simone Biles competes on the uneven bars at the United States Gymnastics Olympic Trials on S...

Associated Press

Biles, Richardson, Osaka comebacks ‘bigger than them.’ They highlight issues facing Black women

PARIS (AP) — When Naomi Osaka lifts her racket on the red clay courts at Roland Garros during the Paris Olympics later this month, it’ll represent more than a high-stakes competition for the tennis star. For Osaka, a four-time grand slam champion, it’s an important step in her journey after returning to tennis earlier this […]

16 hours ago

FILE -Gen. Mohammed Hamdan Dagalo, the deputy head of the military council speaks at a ceremony in ...

Associated Press

Sudan paramilitary leader plans to attend cease-fire talks in Switzerland hosted by US, Saudi Arabia

GENEVA (AP) — Sudan’s paramilitary leader has announced plans to attend cease-fire talks in Switzerland next month arranged by the United States and Saudi Arabia. Gen. Mohammed Hamdan Dagalo, head of the Rapid Support Forces fighting Sudan’s army, expressed hope on social media late Tuesday that the talks would become “a major step” toward peace […]

16 hours ago

Associated Press

Stock market today: Asian shares are mixed after Wall Street breaks losing streak

BANGKOK (AP) — Shares were mixed Tuesday in Asia after U.S. stocks closed broadly higher, as Big Tech stocks took back some of their recent sharp declines. U.S. futures edged lower and oil prices were little changed. Tokyo’s Nikkei 225 closed nearly unchanged, at 39,594.39. Chinese markets declined, with the Hang Seng in Hong Kong […]

2 days ago

Associated Press

Hamas and Fatah sign declaration in Beijing on ending yearslong rift, Chinese state media says

BEIJING (AP) — Palestinian factions Hamas and Fatah signed a declaration in Beijing on ending yearslong rift, state media said Tuesday, without providing further details. The two rival Palestinian groups met with Chinese Foreign Minister Wang Yi, concluding talks that started Sunday.

2 days ago

Stock market today: Markets hold steady ahead of a busy week of updates