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Stock futures are flat after sell-off in growth and tech

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Stock futures are flat after sell-off in growth and tech


Traders working at the New York Stock Exchange (NYSE), today, Wednesday, April 21, 2021.

Source: NYSE

U.S. stock futures were flat in overnight trading on Tuesday following a session defined by major weakness in technology stocks.

Dow futures rose just 12 points. S&P 500 futures gained 0.05% and Nasdaq 100 futures dipped 0.05%.

In after-hours trading, Activision Blizzard rose nearly 6%, T-Mobile popped 2.8% and ride-hailing company Lyft gained 7% after better-than-expected earnings reports.

On Tuesday, investors exited technology and growth stocks, pushing the Nasdaq Composite down 1.9%. Shares of Netflix lost 1.2%, and Microsoft dropped 1.6%. Amazon and Facebook shed 2.2% and 1.3%, respectively. Apple dropped 3.5% and Alphabet fell 1.6%.

The S&P 500 wiped out Monday’s gains, dropping 0.7%. The Dow Jones Industrial Average ended the day up about 20 points after dropping more than 300 points at one point Tuesday.

The small-cap benchmark Russell 2000 fell 1.3%. Reopening plays like airlines, casinos and cruise lines also saw selling pressure.

There are a number of possible reasons for the downward pressure, including fears about rising inflation, concerns the Federal Reserve may have to taper monetary stimulus earlier than telegraphed, and the potential for tax hikes in the months ahead.

U.S. equities hit lows of the day following Treasury Secretary Janet Yellen’s comments that interest rates may have to rise somewhat to keep economy from overheating.

Earnings season continues on Wednesday with reports out from General Motors, Hilton Worldwide, Allstate and Etsy. While earnings have been coming in strong for the first quarter and companies have been raising guidance, stocks are not always moving upward following good news. Investors told CNBC this could mean the positive outlook is already priced into stocks.

Private payroll data will also be released Wednesday at 8:15 a.m. ET. Economists polled by Dow Jones are expecting 800,000 private jobs added in April, compared to the 517,000 in March, according to ADP. These numbers come ahead of Friday’s closely-watched jobs report.

Two key readings on the services sector will also be released on Wednesday morning.

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Chinese Producer Prices Surge, bur Consumer Prices Slow Down, Over Inflation By Investing.com

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Chinese Producer Prices Surge, bur Consumer Prices Slow Down, Over Inflation By Investing.com



© Reuters.

By Gina Lee

Investing.com – China’s producer price jumped in April, but consumer inflation saw modest gains, as soaring commodity prices increased concerns about inflation.

Data from the National Bureau of Statistics (NBS) said that China’s grew 6.8% year-on-year in April, the highest since October 2017. It exceeded the 6.5% growth in forecasts prepared by Investing.com and March’s 4.4% growth.

Meanwhile, the consumer price index (CPI) fell 0.3% in April, lower than the 0.2% contraction in forecasts prepared by Investing.com but above March’s 0.5% decrease. The CPI grew 0.9% , slightly below the 1.0% growth in forecasts prepared by Investing.com while remaining above March’s 0.4% growth.

The widening gap between the CPI and PPI “suggests an uneven recovery of the economy,” said Raymond Yeung, chief China economist at Australia & New Zealand Banking Group (OTC:) Ltd.

“Despite the commodity boom, the service sector has yet to catch up… wages are lagging and the People’s Bank of China (PBOC) will likely keep its policy stance ‘largely neutral,'”  he added.

Investors are also concerned that a commodities boom in the world’s biggest exporter, which was driven by increasing global demand and supply shortages, will lead to inflation globally as manufacturers start passing on higher prices to retailers.

Some central banks, including the U.S. Federal Reserve, maintain the view that any inflation is temporary. However, Chinese policymakers insist that it can limit the impact of commodity prices on the domestic economy and control price growth. Meanwhile, the government also pledged to limit costs to firms by taking further measures to control the raw materials market.

The PBOC is also looking to slow down its stimulus measures rolled out as COVID-19 spread in 2020, due to concerns over the buildup of debt. Economists also expect a slowdown of credit expansion instead of interest rate growth.

Meanwhile, the Communist Party’s Politburo said in April that it will not hand down any sharp reversal of macroeconomic policies.

While China targets to keep its consumer inflation at around 3% this year, the index is expected to be “significantly lower” than the official aim in 2021, said an NBS official.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Worst-paying blue chip employers bolstered CEO pay in pandemic, report says By Reuters

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Worst-paying blue chip employers bolstered CEO pay in pandemic, report says By Reuters



© Reuters. FILE PHOTO: A delivery staff member wearing a protective mask enters a KFC fast food outlet after a delivery, amid concerns about the spread of the coronavirus disease (COVID-19), in Colombo, Sri Lanka, July 9, 2020. REUTERS/Dinuka Liyanawatt

By Jessica DiNapoli

NEW YORK (Reuters) – More than half of 100 companies with the lowest median employee wages in the boosted CEO pay by changing the rules for assessing executive performance during the COVID-19 pandemic, according to a report by a left-leaning policy group published on Tuesday.

The report from the Institute for Policy Studies found that 51 of these 100 companies, including beverage and snack maker Coca-Cola (NYSE:) Co, cruise ship operator Carnival (NYSE:) Corp and fast food corporation Yum Brands Inc, reduced median worker pay by 2% to $28,187 on average in 2020 compared to 2019, even as the median compensation for their CEOs rose 29% to $15.3 million.

The findings offer ammunition to investors opposing executive compensation hikes in non-binding votes held at the annual shareholder meetings of companies. More companies are facing shareholder backlash against their CEO pay this year than last, Reuters has reported.

The companies studied in the report bolstered executive compensation by lowering performance targets, giving retention bonuses and swapping out stock awards linked to financial results with time-based share grants, the report found.

A Carnival spokesman said in an email that CEO Arnold Donald received no cash bonus in 2020 and his total compensation in last year was down 29% versus 2019.

A Coke spokesperson referred comment to the company’s proxy statement, which notes that roughly 1,000 employees received special share awards, in addition to executives.

“We can’t rely on corporate boards to fix the problem of excessive CEO compensation,” Sarah Anderson, a co-author of the report, said in an interview. Anderson suggested in the report that companies with the highest CEO-to-average worker pay ratios should be taxed more.

The CEO-to-average worker pay ratio for the 51 companies in the report was 830-to-1.

The Yum Brands board authorized discretionary adjustments to bonus programs resulting in a $1.4 million bonus for CEO David Gibbs he otherwise would not have received, according to a securities filing. He also received a one-time stock award of $882,127, for a total 2020 compensation of $14.6 million, according to the filing.

The company’s board said the compensation boost was appropriate given that Gibbs and other executives helped stabilize the business and positioned it for success coming out of the pandemic.

In a prepared statement, Yum Brands said Gibbs gave up his base salary and used it to help fund one-time $1,000 bonuses for nearly 1,200 restaurant general managers. The company also awarded special bonuses to team members in company-owned restaurants globally.

Yum Brands identified a part-time worker at its fast food chicken chain KFC as its median employee, with a total compensation of $11,377, in the filing.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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U.S. Fed should require banks to hold more cash for climate risks -think tank By Reuters

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U.S. Fed should require banks to hold more cash for climate risks -think tank By Reuters



© Reuters. FILE PHOTO: Federal Reserve Board building is pictured in Washington, U.S., March 19, 2019. REUTERS/Leah Millis

By Pete Schroeder

WASHINGTON (Reuters) – The U.S. Federal Reserve should force banks to hold more cash to guard against potential losses due to climate change and possible steps to fight it, one of Washington’s top liberal think tanks said on Tuesday.

The plan https://www.americanprogress.org/?p=498976, published by the Center for American Progress and seen first by Reuters, is likely to inform a looming debate about exactly how far bank regulators should go in policing climate change as the Biden administration looks to tackle the issue on all fronts.

The paper argues that the Fed could move quickly to bolster banks’ capital cushions by establishing several new safeguards, including a new capital surcharge directly tied to how much pollution banks directly finance and heightened stress tests of big banks that incorporate climate risks.

Several of the changes are likely to be strongly opposed by Wall Street, and the Fed itself has taken a much more deliberate approach to climate than sought by progressive Democrats.

After lagging European counterparts on climate change under the Trump administration, the Fed has ramped up efforts in recent months, including devoting new staff specifically to exploring how climate change could impact the economy and the financial system.

“It is increasingly clear that climate change could have important implications for the Federal Reserve in carrying out its responsibilities,” said Fed Governor Lael Brainard in a March speech.

But the Fed has yet to adopt any new policies in response to climate change, a move the paper argues the regulator can ill afford.

“It would be quite easy for financial regulators to spend the next decade collecting more data, researching the issue…avoiding any actual steps to safeguard the financial system from these risks,” the paper stated. “The potential damage to the financial system is too great for regulators to wait.”

Instead, the group argues the Fed should move quickly, directing banks to hold more capital if they are exposed to more heavily polluting industries, arguing they could lose value as the world moves toward cleaner industries.

It adds the Fed should go farther with the largest banks, imposing a new capital surcharge directly tied to how much carbon they finance with their activities.

The report also called on the Fed to create a new exercise to test banks’ resilience to climate change over the long term, as well as integrate near-term climate risk into the existing annual stress test of bank finances.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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