Stock Market Today - 6/23: Stocks Rise, Oil, and Treasury Yields Retreat As a Contingent Recession Risk

Stock Market Today - 6/23: Stocks Rise, Oil, and Treasury Yields Retreat As a Contingent Recession R ...

Updated at 9:50 am EST

Stocks in the United States climbed Thursday, while Treasury bond yields continued to fall as investors heeded Jerome Powell''s warning that a near-term financial collapse would happen.

The closely-watched PMI analysis of economic activity at S&P Global has added to the problem, as the composite benchmark has dropped to 51.2 points, the lowest level since January, and just over the 50 point mark that separates growth from contraction.

Powell spoke before the Senate Banking Committee on Capitol Hill yesterday that the Fed''s inflation fight, which includes higher rates and a pullback in liquidity, isn''t intended to "provoke" a recession, although he admitted that it was "certainly a possibility."

Despite the Fed''s recent rate hike, which converts the central bank''s target lending range to between 1.5 and 1.5 percent, he added that "further surprises" might be in store in terms of higher inflation estimates.

Despite the shocking assessment that the Fed can prepare for a so-called''soft landing'' from its current difficulties, investors have even more reason to remain retrenched in risk-free markets amid the worst first-half start for US equities since the early 1970s.

Global oil prices, for example, are experiencing a slew again Thursday, with WTI crude futures for August deliveries expected to drop by $2.51 south of yesterday''s trading at $103.73 per barrel, as investors respond to the prospect of weakening near-term demand.

10-year Treasury bond rates increased to 3.071 % in overnight trading, while 2-year notes were trading at 2.922%, indicating that bond investors are pricing in raising the risk of a recession.

That concern is particularly evident in the housing market, where mortgage rates are approaching 6%, the highest level since 2008, and the pace of home buying is starting to decline.

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The Occidental stock plummets as Warren Buffett raises its share to $8.52 billion.

Netflix''s stock is rising as a result of reports about the development of an advertising model.

Get JP Morgan Chase & Co. Report, in fact, is planning job losses in its mortgage business amid the suddenly-cooling housing market. The move, initially reported by Bloomberg, will see JPMorgan either conceding or redeploying around 1,000 people in its mortgage unit, citing "cyclical changes in the market."

For the year, the S&P 500 index is down 21%, which would be the lowest first half to any year since 1970, according to LPL Financial Chief Market Strategist Ryan Detrick. The good news is that previous years that were at least 15% at the midway point to the year saw the last six months increase every time, with a average return of nearly 24 percent.

Following results fromS&P Global, Europe''s region-wide Stoxx 600 was found to be 0.6% lower in late-day Frankfurt trading. That modest gain followed a 0.25 percent increase for Asia''s MSCI ex-Japan benchmark.

The Dow Jones Industrial Average was recorded 155 higher in early trading, while the S&P 500 gained 17 points, perhaps boosted by cautions that slowing growth will result in a pause in Fed rate rises. The Nasdaq, which is tech, gained 40 points, opening bell advance.

Reportshares, a company based in Switzerland, were in the early stages of early trading ahead of the package delivery group''s earnings for the fourth quarter.

FedEx, which was under pressure from activist investors at D.E. Shaw Group after Fred Smith''s retirement, is expected to increase by 33.7 percent from last year to $6.87 per share, with revenues rising by 8.6% to just over $24.5 billion.

Get Tesla Inc. Reportshares, meanwhile, rose 1.6 percent following an interview with CEO Elon Musk, where he warned of billions in losses from his newly-opened facilities in Texas and Berlin.

Reportshares, the sports apparel company, said it will exit its business operations in Russia less than a week ahead of its fourth quarter earnings, boosted the news.

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