LIVE Stocks bounce back from 3-day rout as S&P 500, Nasdaq rally XETRA - Delayed Quote • CHF IN.IS.MSCI WOR.S. DL D.SF (0K7M.DE) Follow 7.05 0.00 (0.00%) At close: February 3 at 5:45 PM GMT+1 Related News Markets eye rebound, Google loses antitrust suit: Catalysts On today's episode of Catalysts, Hosts Seana Smith and Madison Mills break down some of the trading day's biggest stories, from the global market sell-off to some of the latest earnings reports. The major indexes (^DJI,^GSPC, ^IXIC) are bouncing back after a three-day sell-off triggered by a weaker-than-expected jobs report in July. As investors continue to be wary of a recession, Apollo Global Management chief economist Torsten Slok notes that despite the weak labor report, there's not much other evidence that points to a recession: "Daily data for how many people fly on airplanes as of last Friday is still strong. Daily data from OpenTable for how many people go to restaurants is still strong. Weekly data for retail sales from Redbook is also still strong. Hotel occupancy rates, the weekly data also still strong." He reiterates Federal Reserve Chair Jerome Powell's emphasis on the totality of the data, and adds, "the market is overreacting to just one data point." Note: Apollo Global Management is Yahoo's parent company. Longview Economics founder, CEO, and chief market strategist Chris Watling explains, "Sell-offs tend to happen in waves. So it's not just a straight line down, then we're done. You know, they tend to be three waves or five waves. And in the middle of that, you get these relief rallies. So it's perfectly natural that you have a very aggressive downside, a little bit of short covering, which creates a rally, which is probably what we're in now." For investors trying to navigate the pullback, he encourages them to "buy the bounce, trade them for a couple of weeks, go long if you're nimble, but really lighten up if you're if you're sort of multi-month investor. It all depends on your time frames. That's the challenge." A federal judge found Alphabet's (GOOG, GOOGL) Google search and advertising business to be in violation of antitrust laws. Presiding over the case levied by the Department of Justice, US District Judge Amit P. Mehta wrote "Google is a monopolist, and it has acted as one to maintain its monopoly." Many experts are speculating whether this ruling over Google's search dominance could impact another tech giant: Apple (AAPL). Yahoo Finance tech editor Dan Howley explains why this antitrust case could hurt the iPhone maker who has a revenue-sharing agreement with Google to make its search engine the default on its smartphones. Meanwhile, new earnings reports hit the market on Tuesday. Shares of Saudi Aramco (2223.SR) are trading higher after the company met second quarter net income expectations and will pay a quarterly dividend totaling $31.1 billion. Shares of Yum! Brands (YUM) are also climbing despite reporting mixed second quarter results. While the KFC and Taco Bell parent missed revenue expectations and saw same-store sales drop in those chains, its earnings topped analyst forecasts. Yum! Brands attributed the weakness to a softening consumer spending environment and Middle East tensions. This post was written by Melanie Riehl Prepare for up to five sell-off waves, strategist explains Stocks (^DJI, ^IXIC, ^GSPC) are eyeing a recovery after a three-day sell-off. But is it too early to declare today's movement as a "Turnaround Tuesday"? Longview Economics founder, CEO, and chief market strategist Chris Watling joins Catalysts to discuss the market action and how investors can best position their portfolios amid volatility. "Sell-offs tend to happen in waves. So it's not just a straight line down, then we're done. You know, they tend to be three waves or five waves. And in the middle of that, you get these relief rallies," Watling explains. "So it's perfectly natural that you have a very aggressive downside, a little bit of short covering, which creates a rally, which is probably what we're in now." He adds that back in July, there was an aggressive market rotation as the Russell 2000 small-cap index (^RUT) saw growth while the tech-heavy Nasdaq Composite (^IXIC) saw a significant sell-off. As the stock market leadership started to change, he notes that we're now "in a liquidation event." "You never changed global sector leadership without a big pullback," Watling tells Yahoo Finance, viewing the next few weeks and months as an opportunity to invest in the new sector leadership and move away from the Magnificent Seven tech names. For investors trying to navigate the pullback, he encourages them to "buy the bounce, trade them for a couple of weeks, go long if you're nimble, but really lighten up if you're if you're sort of multi-month investor. It all depends on your time frames. That's the challenge." For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Melanie Riehl Investing during a downturn: A portfolio manager's advice US equities (^GSPC, ^DJI, ^IXIC) are recovering from a major sell-off, with the Dow Jones Industrial Average closing down more than 1,000 points on Monday. Gradient Investments senior portfolio manager Jeremy Bryan joins Wealth! to give insight to investors on how to manage their portfolios during a downturn in the broader market. "I think the biggest thing is understand your level of risk and what you're trying to accomplish. When you see big rallies like we've seen over the past six, eight, nine months, a lot of people can get away from what their natural investment plan is and start to chase returns because everything looks like it's going up," says Bryan He affirms: "I think when you have things like this, it's a natural component to obviously be concerned, but secondarily to just take a breath and understand where you are from a risk objective." He also advises: "Markets are above their five and ten year average valuations. So it's not like this correction has created an ultra-cheap market. So really you do have to kind of pick and choose your battles. And you have to understand where you think opportunity is." For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Nicholas Jacobino Fed typically waits for a crisis to make 'inter-meeting' cuts. Some want it to do so now. Some Fed watchers are urging the central bank to do something it rarely does: lower rates outside of a regularly-scheduled policy meeting. Others say such an action is highly unlikely. Recession worries are 'overdone': Strategist US stock markets (^DJI, ^IXIC, ^GSPC) are rebounding from widespread losses after recession fears triggered a sell-off on Monday. Scott Wren, Wells Fargo Investment Institute senior global market strategist for and Seema Shah, Principal Asset Management chief global strategist join Morning Brief to discuss their market outlooks. Shah describes the market sell-off as "a valid reaction, in some sense" though she believes the recession fears were "very much overdone." As markets recover, Shah suggests this indicates that "actually the economy concerns are not as bad as had been expected." However, she cautions that rapid moves in either direction can be "damaging" across markets. Wren notes that fear "gripped the market" following Friday's employment report, although he doesn't foresee a recession. While he expects economic growth may slow, he predicts improvement "in the second half of next year." Wren advises investors to "take advantage" of this market downturn to reposition portfolios. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Angel Smith How the global sell-off is impacting currencies Global markets have been under strain for the past three days, raising questions about the impact on currencies. Yahoo Finance markets and data editor Jared Blikre breaks down the details, focusing on the relationship between the US dollar and the Japanese yen (JPY=X). For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Angel Smith Stocks still have the same problem after a wild Monday in markets: Morning Brief The stock market was rocked Monday, but a third straight day of selling pressure didn't change the biggest problem for investors right now: the Federal Reserve. Sell-off lead up, heightened volatility: Market Takeaways The Dow Jones Industrial Average (^DJI) sank by an astounding 1,033 points in Monday's market sell-off, led by the tech-heavy Nasdaq Composite's (^IXIC) own 3.43% decline. Yahoo Finance markets reporter Josh Schafer explains the perfect storm of market conditions that led to broad-based selling and heightened volatility (^VIX), including July's disappointing jobs figures and the rotation out of Big Tech names. For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend. This post was written by Luke Carberry Mogan. Investors entering into 'new era' of volatility: Strategist The major indexes (^DJI,^GSPC, ^IXIC) are under pressure amid a global market sell-off. Fundstrat Global Advisors managing director and global head of technical strategy Mark Newton joins Market Domination to discuss the movement and how investors should navigate the pullback. "A lot of this has been specifically technology related, and I think investors are trying to come to grips with this new era of really cross-asset volatility that's affected not only large-cap technology within equities, but also interest rates and FX [foreign exchanges]. And we're seeing cryptocurrency declines. And so it's really a new era where a lot of these have been declining at once," Newton explains. He believes that despite the broad sell-off, it will most likely bottom out this week: "We'll bring a short-term low to this decline. And I say that specifically for a few reasons. One is that dollar-yen, which is at least one of the reasons why equities turned down so sharply, was a huge change in policy. BOJ (Bank of Japan) cut their bond purchases in half and obviously hiked rates, so we saw a big surge in the end... "The second is that you're seeing sort of a dislocation finally in excessive volume to the downside. We never really saw that over the last few months," Newton explains. He notes that investors are now pricing in a 50-basis-point interest rate cut from the Federal Reserve in September, making the market "fairly valued." Fed officials are facing deepening pressure to even cut rates before its policy meeting next month. He believes that the sell-off could present a buying opportunity as he does not believe investor fear "makes a lot of sense based on looking at broad-based nature of what's happening across the globe." For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Melanie Riehl Inter-meeting cut would signal 'total panic': El-Erian on Fed The heat is on for the Federal Reserve as stock market sell-offs (^DJI, ^IXIC, ^GSPC) following July's disappointing jobs data are placing further pressure on the central bank to cut interest rates before its next scheduled policy meeting in September. "We're seeing red lights on three things — fundamentals, policy, and technicals. And they are feeding onto each other," Allianz Chief Economic Advisor Mohamed El-Erian warns, plainly stating the Fed waited too long in 2024 to initiate a rate-cutting cycle. The University of Cambridge, Queens’ College president and former PIMCO CEO comes onto Market Domination to outline why an early rate cut before September's FOMC meeting could "give the completely wrong signal to the marketplace" and enforce recessionary sentiments from American consumers. "I think we are in overshot territory in several segments of the marketplace already. Certainly in fixed-income in terms of government bond yields, the sort of declines we've seen, especially at the front end of the curve, are, in my view, an overreaction," El-Erian tells Yahoo Finance. "So look at whether this overreaction [starts] getting corrected or not. The ISM services number today reminded people that the economy is not completely in recession. It's the risk of recession, not in recession..." For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Luke Carberry Mogan. Stock market turmoil ‘only half complete’, warns Wall Street giant The global stock market rout has a long way to go, analysis by a Wall Street bank has indicated, as European markets once again turn negative. Stocks Stage Rally in Wall Street’s Wild Reversal: Markets Wrap (Bloomberg) -- A renewed wave of dip buying triggered a stock rally after a roughly $6.5 trillion selloff that shook markets around the globe.Most Read from BloombergAfrica’s Richest City Needs $12 Billion to Fix InfrastructureNew York City’s Outdoor Dining Sheds Will Start DisappearingSinger Akon’s Multibillion-Dollar Futuristic City in Africa Gets Final NoticeThe 5 Coastal States That Face the Most Devastating Flood RiskParis Spent €1.4 Billion to Clean Up the Seine. Has It Worked?All major gr US stocks rebound on dip buying in tech following rout Investing.com-- U.S. stocks climbed Tuesday as dip buyers piled into beaten down tech stocks following a rout a day earlier. Top Stock Movers Now: Kenvue, Uber, Palantir, and More U.S. equities rallied Tuesday after Monday's big sell-off amid worries about the health of the U.S. economy. Hedge Funds Bought the Dip in US Stocks on Monday, Goldman Says (Bloomberg) -- As volatility gripped global markets to start the week, hedge funds stepped in to buy the big dip in technology shares, according to Goldman Sachs Group Inc.’s prime brokerage data.Most Read from BloombergAfrica’s Richest City Needs $12 Billion to Fix InfrastructureNew York City’s Outdoor Dining Sheds Will Start DisappearingSinger Akon’s Multibillion-Dollar Futuristic City in Africa Gets Final NoticeThe 5 Coastal States That Face the Most Devastating Flood RiskParis Spent €1.4 Bil US Equity Indexes Rebound in Midday Trading US Equity Indexes Rebound in Midday Trading If You'd Invested $5,000 in Apple Stock 5 Years Ago, Here's How Much You'd Have Today Can Apple's shares continue to beat the market? Dow Jones Up As Google Ruling Raises Apple Fears; Cathie Wood Loads Up On AI Stock (Live Coverage) The Dow Jones was up on the stock market today. Palantir stock surged on earnings. Cathie Wood snapped up a diving stock. Nvidia gained. Tech Leads US Stocks Higher as Dip Buyers Emerge: Markets Wrap (Bloomberg) -- Stocks continued to rise as dip buyers jumped back into the market after a roughly $6.5 trillion selloff in from global equities over the past few weeks.Most Read from BloombergAfrica’s Richest City Needs $12 Billion to Fix InfrastructureNew York City’s Outdoor Dining Sheds Will Start DisappearingSinger Akon’s Multibillion-Dollar Futuristic City in Africa Gets Final NoticeThe 5 Coastal States That Face the Most Devastating Flood RiskParis Spent €1.4 Billion to Clean Up the Seine. S&P 500 Nuclear Power Giant Hikes 2024 Profit Outlook After 800% Grid-Price Surge S&P 500 component Constellation Energy increased its full-year profit guidance Tuesday even as second-quarter earnings and revenue came in slightly under analyst expectations. Constellation Energy reported Tuesday that Q2 adjusted earnings grew more than 2% to $1.68 per share while revenue increased less than 1% to $5.47 billion. Constellation Energy's previous view was $7.23-$8.03 per share.
