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US Equity Markets End Lower After Crude Oil, Government Bond Yields Rise Following US-Iran Military Escalation

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US equity indexes ended lower Monday after crude oil prices and government bond yields rose following US-Iran military escalation.

* Iran and the US traded attacks for the first time in over a month overnight into Monday, CNN reported. Iran said it attacked US bases in Jordan and US military targets at the Al Minhad airbase in the United Arab Emirates after US forces bombed two rocket launchers on Iran's Larak Island, according to a report from Al Jazeera.

* The Dallas Fed's monthly manufacturing index jumped to 11.6 in August from 1.3 in July, above expectations for 1.6 in a survey compiled by Bloomberg, indicating a faster pace of expansion.

* October West Texas Intermediate crude oil rose $2.58 to settle at $85.98 per barrel, while November Brent crude, the global benchmark, was last seen up $2.35 at $90.45.

* Tesla (TSLA) is selling a simplified version of Model 3 at a lower price in Hong Kong and Macau than in mainland China, according to media reports and the company's regional websites. Shares were up about 5.5%, the top gainer on the S&P 500 and Nasdaq.

* Shares of PG&E (PCG) and Edison International (EIX) were down over 20%, the worst performers on the S&P 500, after ABC7 reported Sunday that California amended legislation to protect wildfire survivors' right to sue utilities for equipment-caused blazes.

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US Equity Markets End Lower After Govt Bond Yields Rise Following Fed Chair Warsh's Comments on Inflation

US equity indexes ended lower Friday after government bond yields rose following Federal Reserve Chairman Kevin Warsh's statement that inflation is the more concerning part of the central bank's dual mandate.* "The Fed's price-stability objective of 2%, as measured by the personal consumption expenditures price index, is a firm, fixed target," Warsh said, speaking at the annual Jackson Hole Economic Policy Symposium.* Mediators in the Iran war are stepping up efforts to get the Strait of Hormuz reopened, with Tehran agreeing to draw up a list of conditions to restore normal traffic after the Qatari prime minister asked the Iranians to respect freedom of navigation, Reuters reported.* The University of Michigan consumer sentiment index was revised upward on Friday to 51.7 for August from 51.0 in the preliminary estimate, compared with expectations of no revision in a survey compiled by Bloomberg.* October West Texas Intermediate crude oil fell $0.15 to settle at $83.38 per barrel, while October Brent crude, the global benchmark, was last seen down $0.33 at $89.37.* Workday (WDAY) shares were up about 5.8%, the top gainer on the S&P 500, after it raised the low end of its full-year subscription revenue outlook following fiscal Q2 results above Wall Street's estimates.* Paypal (PYPL) shares were down roughly 13%, the worst performer on the S&P 500, after Bloomberg News reported that Advent and Stripe have backed out of their bid to buy the company.

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Update: US Equity Indexes Slide, Treasury Yields Surge After Fed Chair Warsh Offers Little Monetary Policy Guidance

(Updates with index/price moves and geopolitical news from the first paragraph.)US equity indexes declined while government bond yields jumped after Federal Reserve Chairman Kevin Warsh stressed his focus on the 2% inflation target while offering little guidance on the monetary policy path ahead, as expected.The Nasdaq Composite fell 0.5% to 26,402.4, and the S&P 500 slipped 0.3% to 7,711.7 on Friday. The Dow Jones Industrial Average was down less than 0.1% to 53,559.99.Speaking at the annual Jackson Hole Economic Policy Symposium, Warsh, as expected, did not offer any change to the monetary policy outlook but strongly reaffirmed his commitment to the Fed's mandates while offering little guidance on the timing of rate changes."The Fed's price-stability objective of 2%, as measured by the personal consumption expenditures price index, is a firm, fixed target," Warsh said. "Let's be equally clear about another aspect of the objective: Price stability is not self-executing, nor is inflation necessarily mean-reverting. It is the Fed's job to deliver stable prices."US Treasury yields rose. The 10-year yield climbed 5.4 basis points to 4.73%, and the two-year soared 12 basis points to 4.35%.Mediators in the Iran war are stepping up efforts to get the Strait of Hormuz reopened, with Tehran agreeing to draw up a list of conditions to restore normal traffic after a Qatari emissary pressed the Iranians to respect freedom of navigation, Reuters reported.With the US having disengaged from talks in favour of an economic pressure campaign, the prime minister of Qatar, a US ally, met senior Iranian leaders in Tehran on Thursday, stressing the importance of returning to the pre-war status of open shipping through an international waterway, the news report said.The front-month US West Texas Intermediate crude oil contract slipped 0.1% to $83.44 per barrel, and global benchmark North Sea Brent edged down 0.4% to $89.31 per barrel.In economic news, the University of Michigan consumer sentiment index was revised upward on Friday to 51.7 for August from 51.0 in the preliminary estimate, compared with expectations of no revision in a survey compiled by Bloomberg. That was still below the final reading of 55.2 in July. Respondents expected a 4% inflation rate over the next year, down from 4.2% in July and 3.3% annual inflation over the next five years, the same as in July.

Dow JonesNasdaq CompositeS&P 500
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Update: US Equity Indexes Fall, Treasury Yields Jump After Warsh Reiterates Inflation Commitment

(Updates with index/price moves and geopolitical news from the first paragraph.)US equity indexes fell, while government bond yields advanced after Federal Reserve Chairman Kevin Warsh said inflation is the more concerning part of the central bank's dual mandate, recommitting to the 2% inflation goal.The Nasdaq Composite fell 0.6% to 26,381.5, and the S&P 500 slipped 0.3% to 7,706.2 ahead of Friday's close. The Dow Jones Industrial Average declined 0.1% to 53,533.2.Speaking at the annual Jackson Hole Economic Policy Symposium, Warsh, as expected, did not offer any change to the monetary policy outlook but strongly reaffirmed his commitment to the Fed's mandates while offering little guidance on the timing of rate changes."The Fed's price-stability objective of 2%, as measured by the personal consumption expenditures price index, is a firm, fixed target," Warsh said. "Let's be equally clear about another aspect of the objective: Price stability is not self-executing, nor is inflation necessarily mean-reverting. It is the Fed's job to deliver stable prices."US Treasury yields rose after midday. The 10-year yield climbed 4.8basis points to 4.72%, and the two-year soared 11.3 basis points to 4.35%.Mediators in the Iran war are stepping up efforts to get the Strait of Hormuz reopened, with Tehran agreeing to draw up a list of conditions to restore normal traffic after a Qatari emissary pressed the Iranians to respect freedom of navigation, Reuters reported. With the US having disengaged from talks in favour of an economic pressure campaign, the prime minister of Qatar, a US ally, met senior Iranian leaders in Tehran on Thursday, stressing the importance of returning to the pre-war status of open shipping through an international waterway, the news report said.With the US having disengaged from talks in favour of an economic pressure campaign, the prime minister of Qatar, a US ally, met senior Iranian leaders in Tehran on Thursday, stressing the importance of returning to the pre-war status of open shipping through an international waterway, the news report said.The front-month US West Texas Intermediate crude oil contract slipped 0.4% to $83.16 per barrel, and global benchmark North Sea Brent edged down 0.4% to $89.37 per barrel.In economic news, the University of Michigan consumer sentiment index was revised upward on Friday to 51.7 for August from 51.0 in the preliminary estimate, compared with expectations of no revision in a survey compiled by Bloomberg. That was still below the final reading of 55.2 in July. Respondents expected a 4% inflation rate over the next year, down from 4.2% in July and 3.3% annual inflation over the next five years, the same as in July.

Dow JonesNasdaq CompositeS&P 500