FYI: U.S. stocks surged Wednesday after strong earnings reports from retailers eased some fears about slowing economic growth.
Bond and equity markets have been gloomy about global growth in recent weeks, with many investors expecting a cycle of monetary easing from leading central banks. Some of the anxieties surrounding growth were tempered Wednesday after retailers revealed their financial results for the last quarter.
The Dow Jones Industrial Average climbed .93%, and the S&P 500 jumped 0.82%. The Nasdaq Composite advanced 0.90%.
Target shares soared 19%, on track for a new high, as it reported that sales and profit rose in the second quarter and the retailer raised its earnings guidance for the year. Lowe’s also reported higher profits that beat analysts’ estimates, pushing shares up 10%. The consumer discretionary and tech sectors within the S&P 500 were the biggest winners.
Stocks maintained their gains after minutes from the Federal Reserve’s latest meeting showed officials stressed the need to be flexible with how they might act to lower interest rates in the months ahead.
On Friday, Federal Reserve Chairman Jerome Powell speaks in Jackson Hole, Wyo., at the Fed’s annual economic policy symposium. Several investors warned that markets could grow more turbulent as investors analyzed these comments. The Fed has been a primary driver for markets in recent weeks.
The yield on the 10-year U.S. Treasury note was 1.562% Wednesday, according to Tradeweb, unchanged from before the release of the minutes and from 1.557% on Tuesday.
Investors also welcomed possible political changes in Italy. The Stoxx Europe 600 climbed 1.2%, a day after the country’s prime minister resigned.
The yield on Italian government debt reached its lowest level in around three years Wednesday, continuing to drop after Prime Minister Giuseppe Conte resigned Tuesday, triggering a power struggle within the government in Rome at a time when growth is faltering.
Italy’s benchmark FTSE MIB equities index outperformed other indexes in the region.
In commodities, the price of Brent crude climbed 0.9% to $60.57 a barrel as tensions in the Strait of Hormuz threatened global supplies while analysts worried global trade concerns could cap demand for oil in the coming months.
Australia announced plans to join a U.S.-led coalition protecting oil tankers and cargo ships from attacks by Iran in the region on Wednesday, as pressure on Tehran increased.
Regards,
Ted
Bloomberg Evening Briefing:
https://www.bloomberg.com/news/articles/2019-08-21/your-evening-briefingMarketWatch:
https://www.marketwatch.com/story/stock-market-poised-to-climb-amid-solid-earnings-from-target-and-lowes-2019-08-21/printWSJ:
https://www.wsj.com/articles/global-stocks-rise-ahead-of-fed-minutes-11566375086Bloomberg:
https://www.bloomberg.com/news/articles/2019-08-20/asia-stocks-to-follow-u-s-lower-treasuries-gain-markets-wrap?srnd=premiumIBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-leads-broad-rally-3-stocks-near-buy-point/CNBC:
https://www.cnbc.com/2019/08/21/dow-futures-trade-ahead-of-fed-minutes.htmlReuters:
https://uk.reuters.com/article/us-usa-stocks/target-lowes-earnings-push-wall-st-higher-ahead-of-fed-minutes-idUKKCN1VB1ANU.K:
https://uk.reuters.com/article/uk-britain-stocks/oil-majors-exporters-boost-ftse-100-fed-minutes-eyed-idUKKCN1VB0LFEurope:
https://www.reuters.com/article/us-europe-stocks/italy-leads-bounce-in-european-shares-fiat-renault-talks-in-focus-idUSKCN1VB0LNAsia:
https://www.cnbc.com/2019/08/21/asia-markets-august-21-central-banks-trade-tensions.htmlBonds:
https://www.cnbc.com/2019/08/21/us-bonds-fed-meeting-minutes-in-focus-ahead-of-g7-summit.htmlCurrencies:
https://www.cnbc.com/2019/08/21/forex-markets-dollar-us-yields-in-focus.htmlOil:
https://www.cnbc.com/2019/08/21/gold-markets-federal-reserve-meeting-minutes-in-focus.htmlGold:
https://www.cnbc.com/2019/08/21/gold-markets-federal-reserve-meeting-minutes-in-focus.htmlWSJ: Markets At A Glance:
https://markets.wsj.com/usMajor ETFs % Change:
https://www.barchart.com/etfs-funds/etf-monitorSPDR's Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-trackerSPDR's Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectorsCurrent Futures:
https://finviz.com/futures.ashx 
