‘It’s Clearly Bleak’: Stocks Notch Longest Losing Streak in Months

A rally at the start of the year has given way to worries on Wall Street about economics and geopolitics.

Stocks suffered their longest losing streak of the year, as geopolitical turmoil rattled Wall Street and investors slashed their bets on the Federal Reserve cutting interest rates any time soon.

The S&P 500 fell 0.9 percent on Friday, its sixth consecutive decline, marking its worst run since October 2022.

The slide dragged the S&P 500 down by just over 3 percent for the week, a third straight weekly decline. By that measure, it is the longest weekly losing streak for the index since September, when concerns over rising government debt and a potential government shutdown compounded worries about the effects of high interest rates.

Those fears dissipated toward the end of last year as inflation cooled and investors began to bet that the Fed would soon cut rates, prompting a ferocious stock rally in the first three months of 2024.

But this month, worries that stubborn inflation would lead the Fed to keep rates high have returned, compounded by the widening conflict in the Middle East, with Israel striking Iran early on Friday.

“It’s clearly bleak,” said Andrew Brenner, head of international fixed income at National Alliance Securities.

Investors have pulled roughly $21 billion out of funds that invest in U.S. stocks over the two weeks through Wednesday, according to data from EPFR Global, which tracks fund flows. That compares to an inflow of around $80 billion for the year through early April. And the unease is not just apparent in the stock market.

U.S. government bond yields, which underpin interest rates for a wide variety of loans, have been rising. The average rate on 30-year mortgages, the most popular home loan in the United States, rose above 7 percent on Thursday for the first time this year.

The dollar is also markedly higher, putting pressure on countries that import goods from the United States and issue dollar-denominated debt. And oil prices, stoked by geopolitical tensions, are up more than 13 percent since the start of the year.

“There is nothing that looks good right now,” Mr. Brenner said.

Recent reports showing hotter-than-expected inflation have altered investors’ forecasts for the Fed, which has kept its key rate near a two-decade high. “The recent data have clearly not given us greater confidence and instead indicate that it’s likely to take longer than expected to achieve that confidence,” Jerome H. Powell, the Fed chair, said at an event in Washington on Tuesday.

Economists at Société Générale no longer expect the Fed to cut rates this year. BNP Paribas and Wells Fargo economists have also dialed down their expectations for cuts.

Traders in futures markets, which allow investors to bet on where interest rates are headed, are wagering on one, and perhaps two, quarter-point cuts by the end of the year. At the start of the year, traders were expecting six cuts over that period.

At first, the shift appeared to be welcomed by stock investors. A strong economy, all else equal, is good for the stock market, and while some inflation data had started to buck the trend earlier this year it wasn’t enough to disrupt the broader cooling that took hold in 2023. But recent inflation reports have continued to disappointed investors and economists and become harder to ignore.

John Williams, the president of the New York Fed, said this week that it was possible that another increase, rather than a cut, to rates might be warranted if inflation remained sticky, even if that wasn’t what he considered the most likely scenario. Other officials have noted that the Fed may have to wait until much later this year, or even 2025, to begin easing rates.

So far, worries have yet to intensify to the point of threatening the strength of the U.S. economy. Although the S&P 500 has fallen 5.5 percent this month, it remains more than 4 percent higher for the year.

And a recent survey of fund managers around the world by Bank of America showed the most optimism since January 2022, with respondents expecting global growth to accelerate. The biggest risk, according to the respondents, is a rise in inflation that could keep interest rates elevated, squeezing growth abroad and at home.

 In a Manhattan Court, a Jury Is Picked to Judge a President

Justice Juan M. Merchan warned against identifying the people who might judge Donald J. Trump, who regularly attacks the justice system.

Prosecutors have asked that Donald J. Trump be punished for promoting attacks on the jury system and the court.Credit...Pool photo by Brendan McDermid

At 4:34 p.m. on Thursday, a jury of 12 citizens was selected to determine the fate of an indicted former president for the first time in American history, a moment that could shape the nation’s political and legal landscapes for generations to come.

The dozen New Yorkers will sit in judgment of Donald J. Trump, the 45th president turned criminal defendant, who has been accused of falsifying records to cover up a sex scandal. If the jurors convict Mr. Trump, he could face up to four years in prison, even as he seeks to reclaim the White House as the presumptive Republican nominee.

“We have our jury,” Justice Juan M. Merchan proclaimed as the 12th juror was added.

He then swore the seven men and five women to an oath that they would render a fair and impartial verdict, which they accepted with sober expressions as Mr. Trump stared from the defense table. The jurors could hear opening arguments as soon as Monday.

The selection of the 12 capped a seesaw day in which the judge first excused two people who had been seated earlier in the week, and then hours later replaced them with two new faces and more.

The moment was both routine and never before seen, an act performed every day in courthouses around the country, but never for a former president, a symbol and source of the nation’s political divide.

Mr. Trump, under the Constitution, is entitled to a fair trial by a jury of his peers. And yet he is peerless, a singular force in American politics who was twice impeached and brought democracy to the brink when he refused to accept his election defeat.

Now, just as he bent the political world to his will, Mr. Trump is testing the limits of the American justice system, assailing the integrity of jury and judge alike. His attacks have emboldened his base, and might well resonate more broadly on the campaign trial.

But it will be the 12 men and women of the jury — in Mr. Trump’s hometown — who will first decide his fate, before millions more do so at the polls.

The jury’s makeup and the security of its members will be central to the landmark case. Mr. Trump claims he cannot receive a fair trial in one of the nation’s most Democratic counties, a place where he is deeply unpopular, though some of the jurors who ultimately landed on the panel praised him.

One man said during the selection that he believed the former president had done some good for the country, adding, “it goes both ways.” Another juror, in a possible first for the country, said he didn’t have an opinion on Mr. Trump.

The final 12 were a collection of Manhattanites as eclectic as the city itself. They are Black, Asian, white, male, female, middle-aged and young, including one woman in her first job out of college. They work in finance, education, health care and the law. And they live, among other places, in Harlem, Chelsea, the Upper East Side and Murray Hill.

One alternate was also picked before court adjourned. The judge plans to conclude jury selection on Friday, when the lawyers will select the remaining five alternates.

The long day got off to an inauspicious start as Justice Merchan excused the two jurors, including a woman who had developed concerns about her identity being revealed. That fear, she added, might compromise her fairness and “decision-making in the courtroom,” prompting the judge to excuse her.

The precise reason the judge dismissed the other juror was not clear, but prosecutors had raised concerns about the credibility of answers he had given to questions about himself. Asked outside the courthouse whether he believed he should have been dismissed, the man, who declined to give his name, replied, “Nope.”

The dismissals underscored the intense pressure of serving on this particular panel. Jurors are risking their safety and their privacy to sit in judgment of a former commander in chief who is now their fellow citizen, a heavy responsibility that could unnerve even the most seen-it-all New Yorkers.

During jury selection, prospective members are routinely excused by the dozens. And once a trial formally begins, it is not unheard-of to lose a juror for reasons such as illness or violating a judge’s order not to read about the proceeding. But losing two in one day, before opening arguments even began, was unusual — one of many small ways in which this trial will stand apart.

The ousters appeared to rankle the judge, who has striven to keep the trial on schedule. He said he thought the woman who declined to serve would have “been a very good juror.”

Although the judge has kept prospective jurors’ names private, they disclosed their employers and other identifying information in open court. But Justice Merchan instructed reporters to no longer divulge prospective jurors’ current or past employers, a decision that some media law experts questioned.

Inside a chilly courtroom on Thursday, as lawyers on both sides scrutinized a new round of prospective jurors, Mr. Trump stared intently at the jury box and prodded his lawyers, prompting one, Todd Blanche, to shake his head in response.

 U.S. Mortgage Rates Jump Above 7% for the First Time This Year

Rates on 30-year mortgages — the most common kind among U.S. homeowners — surpassed the 7 percent mark on Thursday, a troublesome sign for an already tight housing market.

Mortgage rates rose above 7 percent for the first time this year, crossing a symbolically concerning threshold that threatens to keep millions of potential home buyers and sellers on the sidelines of a U.S. housing market that is increasingly showing signs of slowing.

The average rate on 30-year mortgages, the most popular home loan in the United States, rose to 7.1 percent this week, Freddie Mac reported on Thursday, the highest since November. Mortgage rates reached a recent high of nearly 8 percent late last year — a level not seen since 2000.

As mortgage rates have risen in recent months, making homeownership costlier for buyers, potential sellers who may feel locked into lower rates on their existing loans have been keeping their houses off the market, in effect pushing prices higher, too. Combined, the forces have fed into a broader feeling of frustration about the economy, at a time when inflation has remained hotter than expected.

“Potential home buyers are deciding whether to buy before rates rise even more, or hold off in hopes of decreases later in the year,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “It remains unclear how many home buyers can withstand increasing rates in the future.”

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At the same time, the market has slowed. Sales of existing homes fell by 4.3 percent in March and 3.7 percent from a year earlier, according to the National Association of Realtors.

In April 2021, mortgage rates were at about 3 percent, less than half the current rate. They began to climb that year and continued to rise in 2022 when the Federal Reserve started raising its benchmark rate in an effort to combat inflation. Although inflation has since cooled significantly, it’s still above the central bank’s 2 percent target.

The Fed has signaled in recent months that it may keep the cost of borrowing higher for longer amid stubborn inflation. The Fed’s benchmark interest rate is currently the highest it’s been in 22 years.

Mortgage lenders generally watch the 10-year Treasury bond, which is tied to mortgage rates, and expectations that the Fed will keep rates high has pushed up Treasury yields. The 10-year Treasury yield has soared since the start of the year, now sitting at about 4.6 percent.

The N.A.R. agreed to settle litigation last month that would eliminate the standard sales commission, a move housing experts say could bring down home prices. Sellers currently pay a 5 or 6 percent commission to a real estate agent, a cost that’s typically passed onto the buyer through a higher sticker price.

J. Edward Moreno is a business reporter at The Times. More about J. Edward Moreno

 Stock futures are little changed after S&P 500 posts a fourth losing day: Live updates

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., November 16, 2023. 

Stock futures traded near the flatline on Wednesday evening after the S&P 500 and the Nasdaq Composite logged a fourth straight day of losses.

Futures tied to the S&P 500 added 0.04%, while Nasdaq 100 futures gained 0.1%. Dow Jones Industrial Average futures were little changed.

In extended trading, credit bureau Equifax declined more than 9% on disappointing second-quarter guidance that missed Wall Street estimates. Shares of Las Vegas Sands slipped nearly 3% after first-quarter revenue narrowly beat analysts' forecasts.

Tech stocks struggled on Wednesday, with the S&P 500 and the Nasdaq Composite registering their fourth consecutive losing session. Nvidia pulled both indexes lower, as the artificial intelligence play dropped nearly 4%. The 30-stock Dow fell for its seventh session in eight.

Wednesday's market pullback adds to a more difficult second quarter on Wall Street. All three major indexes are lower so far in April, in stark contrast to the stronger-than-expected market performance seen in the first quarter. The Dow, S&P 500 and the Nasdaq have also closed below their respective 50-day moving averages.

"The initial support for the S&P on that breakdown was 5000 or just below," JPMorgan head of technical strategy Jason Hunter said on "Closing Bell" Wednesday. "Now the question is: Does a bounce develop from there … and if it does, is it able to get back above the breakdown levels — the 50-day moving average, the area where it gapped down from?" He said he's watching the 5,150 to 5,200 level of the S&P 500 as key resistance.

On the economic front, initial jobless claims data will be due on Thursday morning, and the existing home sales report for March is also out.

Earnings season also heats up with Alaska Air Group and KeyCorp reporting results before the bell, followed by Netflix in the afternoon.

General Motors to move Detroit HQ to new downtown building, plans to redevelop Renaissance Center

 General Motors to move Detroit HQ to new downtown building, plans to redevelop Renaissance Center

General Motors will move its Detroit headquarters to a new downtown office building next year and redevelop its iconic home along the Detroit River.

National headlines from ABC NewsCatch up on the developing stories making headlines.The Associated Press

DETROIT -- General Motors will move its Detroit headquarters to a new downtown office building next year and work to redevelop its iconic home along the Detroit River, company and city officials confirmed Monday.

The announcement was made at the site of the old Hudson’s department store, which is being developed into a tower and 12-story office building that will house GM and is being built by the Bedrock real estate firm.

Bedrock will join GM, the city, and Wayne County in coming up with ideas to remake the seven-building Renaissance Center, the company's current world headquarters and a showpiece on the city's skyline that's often shown on televised sports broadcasts.

GM CEO Mary Barra said the move to a brand new state-of-the-art office building in the heart of the city will help GM recruit talent in the future. The new site is about a mile (1.6 kilometers) north of the Renaissance Center. The move also keeps GM’s headquarters in the city for the foreseeable future, she said.

"We’re going to be in the heart of the city,” Barra said. “Our people are already excited to be in Detroit and live here. I think having this workspace that’s modern and new that really fits the way people work today, I think it’s definitely going to be an attraction.”

Bedrock Chairman Dan Gilbert said office building on the Hudson’s site on Woodward Avenue was designed and built to house a major corporation. The building and the adjacent tower will have meeting space, retail, a luxury hotel and living space, along what was America’s first paved road, he said.

The move will help Detroit continue to thrive, he said.

Mayor Mike Duggan said GM and Detroit have risen and fallen together for the past century, and he’s pleased to say that “GM and Detroit are rising together again.”

The future of Renaissance Center, home to GM through its brush with death and bankruptcy in 2009 as well as multiple years of huge profits, remains unclear. But the move next year will mark the end of an era for the automotive giant.

The main tower, the tallest building in Detroit, is 73 stories.

Through the years and especially after the pandemic, the number of GM employees at the building has dwindled, and multiple businesses located there have closed.

Barra said GM is open to ideas about the Renaissance Center complex, which the company bought nearly three decades ago. The company invested more than $1 billion there, she said. It's not selling the building at present, but that is possible.

Bedrock owns multiple office buildings throughout the city's downtown and has renovated many of them.

Barra said GM, Bedrock and governments will explore residential, commercial and mixed uses for the iconic tower complex, known locally as the RenCen.

“I am confident that together we can create a right future for that site,” Barra said Monday.

Duggan said Gilbert will know what to do with the complex in the future.

GM bought the tower complex in 1996 and later moved its headquarters there from a site north of downtown. It has housed the company ever since.

Bedrock has been buying up properties downtown for many years and has led its rebirth. Gilbert also runs loan company Rocket Mortgage.

In a 2022 interview, Barra told The Associated Press that GM will keep its main office in the RenCen complex just across the Detroit River from Canada.

But she qualified her statements, saying she couldn't predict what might happen in five, 10 or 15 years. Since then, about 5,000 white-collar workers at GM took early retirement buyouts, and may workers are still on a hybrid office-home work schedule, so GM needs less office space.

The company takes up about 1 1/2 of the RenCen’s towers, which have seen little pedestrian traffic for years. Much of GM’s work force, including product development and engineering, is north of the city at an updated 1950s technical center in suburban Warren. After GM’s 2009 bankruptcy, the company considered moving the headquarters there.

The Renaissance Center was built by Henry Ford II, who formed a coalition in the 1970s in an effort to reinvigorate Detroit’s downtown.

Bedrock announced last week that the final structural steel beam had been put in place on the Hudson's tower, which is expected to have 1.5 million square feet of retail, office, dining, hospitality and residential space.

 

Two 100-foot asteroids set to pass Earth today; NASA reveals how close these scary space rocks will come

NASA tracks as many as 4 approaching asteroids, including two 100-foot space rocks. These two asteroids will approach Earth today.

The US space agency, the National Aeronautics and Space Administration, better known through its abbreviation NASA, has revealed that as many as four asteroids are silently making their way towards Earth. Each one varies in size. While asteroids are definitely something to be scared of as they have impacted Earth on many occasions in its long history leading to global scale destruction, none of these have any chance of impacting our planet. The reason behind it is that NASA’s scientists are constantly tracking their movements and this has revealed they will get very close to Earth, but they pose no danger. Their close encounter with Earth is imminent though and as many as two asteroids are 100-foot monsters and they will approach today.

NASA keeps watch as four asteroids, including two 100-foot space rocks, approach Earth today. (Representative image)(Getty Images/iStockphoto)

The first is Asteroid 2024 FR3. It is approximately the size of an airplane. This is a 78-foot asteroid and despite its large size, it is set to maintain a safe distance of 824,000 miles from Earth.

The second is the plane-sized Asteroid 2024 FG3. This is a 100-foot asteroid and it will pass Earth at a safe distance of 1,940,000 miles.

The third is Asteroid 2024 FN3 and it too will pass Earth today. This is also a 100-foot asteroid that is well on its way to Earth in its long journey. This asteroid will get as close as 4,220,000 miles to Earth.

The fourth is Asteroid 2024 FL3. It too is a 100-foot monster in size, but it will make its closest approach on April 3, 2024. Traveling at a distance of 2,030,000 miles from Earth, it marks the end of this series of encounters.

The important thing to note here is that the Universe is huge and many of these space rocks, which tumble out of the asteroid belt due to some reason or the other, get extremely close to Earth. NASA and other global space agencies track these asteroids to ensure that none of them are heading for a potential calamitous crash against the Earth.

While none of these asteroids posed an immediate threat, their close brushes are a scary reminder of the dangers ever-present in space that have to be closely monitored because of the potential dangers.