Mainland China markets open sharply higher, extending stimulus rally after weeklong break; Hong Kong plunges

Aseem — Tue, 08 Oct 2024 02:18:45 +0000

A customer watches stock market at a stock exchange in Hangzhou, China, on September 27, 2024.

Costfoto | Nurphoto | Getty Images

SINGAPORE — Chinese markets skyrocketed over 10% at the open Tuesday, after coming back from the Golden Week holiday as the rally from Beijing’s stimulus measures continued.

The CSI 300 index was up 10.2% in early deals, before paring some gains to record a rise of about 7.5%, but Hong Kong’s Hang Seng index plummeted over 6%.

Other Asia-Pacific markets mostly fell on Tuesday, with investors watching August pay and spending data out from Japan.

Household spending in Japan fell 1.9% year-on-year in August in real terms, a softer fall compared to the 2.6% decline expected by a Reuters poll of economists.

The drop is the fastest pace of decline since January, which saw a 6.3% fall year-on-year. That decline also came before spring wage negotiations delivered the largest pay hikes to unionized Japanese workers in 33 years.

However, real wages rose in August, with data from the country’s statistics bureau indicating that wages climbed 2% to an average of 574,334 yen ($3,877.44).

Overnight in the U.S., stocks slid as rising oil prices and higher Treasury yields weighed on market sentiment.

The Dow Jones Industrial Average dropped 0.94%, while the S&P 500 slid 0.96%. The Nasdaq Composite saw the largest loss, falling 1.18%.

The benchmark 10-year Treasury yield rose to 4.02%, marking the first time since August that the yield topped 4%.

Oil prices also rose as tensions in the Middle East remain high. U.S. crude climbed more than 3% to settle above $77 per barrel.

— CNBC’s Lisa Kailai Han and Jesse Pound contributed to this report.

10 things to watch in the stock market Friday including a bullish call on Best Buy

Harsh — Fri, 27 Sep 2024 13:46:00 +0000

10 things to watch Friday, Sept. 27 1. The S & P 500 was looking at a slightly higher open Friday after another record high close. The 10-year Treasury yield was finally lower following a tame August reading on the Fed’s favorite inflation gauge, the PCE price index. With just a couple trading days left in what’s historically the worst month of year, the S & P 500 was heading for its first September gain in five years. 2. Club holding Costco shares were a tad lower after a solid fiscal 2024 fourth-quarter earnings report Thursday night . The wholesale retailer’s long-awaited membership fee increase, which took effect Sept. 1, will have a limited impact until the back of its fiscal 2025 and into fiscal 2026, executives said. We raised our price target on the stock. 3. Best Buy was added to JPMorgan’s analyst focus list after a meeting with the electronics and appliance retailer’s management team. The analysts, who reiterated their $111 price target, called Best Buy a “value idea” to take advantage of the computing replacement cycle along with TV and appliance sales growth as existing home sales improve. That closely mirrors the Club’s investment thesis. 4. The Food and Drug Administration approved Bristol Myers Squibb ‘s schizophrenia drug Cobenfy, the first new treatment for the disorder approved in seven decades. Shares of the New Jersey-based drugmaker were up more than 3% on the news. 5. Wynn Resorts was upgraded to a buy-equivalent rating at Morgan Stanley. Analysts say the casino operator’s stock can start to command a higher valuation thanks to stability in Las Vegas, more details around its project in the United Arab Emirates, and increased capital returns. Wynn shares had struggled mightily since the spring but caught a bid in recent days on China stimulus news. The Chinese gaming hub of Macau has been a thorn in Wynn’s side. 6. Citigroup downgraded Dollar General to sell from neutral and slashed its price target on the stock to $73 a share, which is about $14 below its Thursday close. Analysts argued that Walmart is taking market share, making a recovery for the dollar store retailer more difficult. Jim Cramer blamed Walmart for Dollar General’s ugly earnings report last month. 7. Deutsche Bank restarted coverage of Dell Technologies with a buy rating and price target of $144 a share. The analysts expect Dell’s revenue growth to accelerate into the double digits due, in part, to the growth of its AI server business; project its bottom line growth rate to also reach double digits; and tout its “clean and simple” capital return framework. 8. Be careful ahead of PepsiCo ‘s earnings report Oct. 8, according to Citigroup. Analysts put the stock on its 30-day negative catalyst watch, saying they expect an operational sales growth miss driven by softness in the soda and snack maker’s North American business. 9. HP Inc. was downgraded to a hold-equivalent neutral from buy at Bank of America as analysts expect upside from its personal computer business to be offset by lower margins in its printer unit. HP shares moved lower Friday. 10. Wedbush Securities’ Dan Ives upped his price target on Salesforce to $325 a share from $315 after positive customer feedback at the software maker’s Dreamforce conference. As we wrote earlier this week for Club members , Salesforce’s new AI offering has jump-started the stock. Sign up for Jim’s Top 10 Morning Thoughts on the Market email newsletter for free (See here for a full list of the stocks at Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

S&P 500 was looking at a slightly higher open Friday after another record high close. The 10-year Treasury yield was finally lower following a tame August reading on the Fed’s favorite inflation gauge, the PCE price index. With just a couple trading days left in what’s historically the worst month of year, the S&P 500 was heading for its first September gain in five years.

2. Club holding Costco shares were a tad lower after a solid fiscal 2024 fourth-quarter earnings report Thursday night. The wholesale retailer’s long-awaited membership fee increase, which took effect Sept. 1, will have a limited impact until the back of its fiscal 2025 and into fiscal 2026, executives said. We raised our price target on the stock.

3. Best Buy was added to JPMorgan’s analyst focus list after a meeting with the electronics and appliance retailer’s management team. The analysts, who reiterated their $111 price target, called Best Buy a “value idea” to take advantage of the computing replacement cycle along with TV and appliance sales growth as existing home sales improve. That closely mirrors the Club’s investment thesis.

NASDAQ Composite – TheNewsHub

Mainland China markets open sharply higher, extending stimulus rally after weeklong break; Hong Kong plunges

10 things to watch in the stock market Friday including a bullish call on Best Buy