Connect with us

Published

on

Stocks are slumping Tuesday as more caution creeps into financial markets worldwide.

The S&P 500 was 1% lower in early trading, following up on losses for stocks across Europe and much of Asia.

The Dow Jones Industrial Average was down 370 points, or 1%, at 35,102, as of 9:50 a.m. Eastern time, and the Nasdaq composite was 1.3% lower.

In the U.S., bank stocks dropped after Moodys cut the credit ratings for several smaller and midsized ones amid a long list of concerns about their financial strength.

Across the Pacific, stocks sank 1.8% in Hong Kong and 0.3% in Shanghai after a report showed exports for Chinas troubled economy shrank by the most since the start of the pandemic in 2020.

The worries layered on top of a mixed set of earnings reports from big U.S. companies.

UPS fell 3% after it cut its forecast for revenue this year. It reported stronger profit for the spring but weaker revenue.

Eli Lilly helped to limit the markets losses after jumping 16.4%.

The medicine developer reported profit and revenue for the spring that both topped analysts expectations.

More jolts may be ahead for markets.

The U.S. government later in the morning will report how many job opening were available across the country in June, a test of how resilient the job market remains.

Economists expect a separate report to show U.S. manufacturing continues to struggle under the weight of much higher interest rates.

The Federal Reserve has hiked its main interest rate to the highest level in more than two decades in hopes of grinding down inflation.

High rates work by slowing the entire economy bluntly, which has raised the risk of a recession but also helped inflation to moderate since its peak last summer.

Besides manufacturing, high rates have hit banks particularly hard. Moodys said the rapid rise in rates has led to conditions that hurt profits for the broad industry, while knocking down the value of investments made when rates were super low.

Such conditions helped cause three high-profile failures for three U.S. banks earlier in the spring, which shook confidence in the system.

Moodys also said troubles may be coming for banks with lots of commercial real estate loans, which are hurting as the threat of a U.S. recession remains and work-from-home trends keep people out of offices.

M&T Bank, one of the banks whose credit rating Moodys downgraded, fell 4.7%.

Truist Financial, one of the banks that Moodys said its reviewing for a possible downgrade, fell 4.5%.

Other, larger banks whose credit ratings weren’t affected also sank.

JPMorgan Chase fell 2% and was one of the heavier weights on the S&P 500.

Later this week, the U.S. government will releases data on consumer and wholesale inflation, which could influence what the Federal Reserve does next with interest rates.

The hope on Wall Street is that the cooldown in inflation since its peak above 9% last summer will help persuade the Fed that upward pressure on prices is under control and no more rate hikes are needed.

Forecasters expect Thursdays data to show consumer prices rose by 3.3% in July over a year ago, an acceleration from Junes 3%.

But some economists and investors say getting that list bit of inflation moderation to the Fed’s target of 2% is likely to be the most difficult.

They’re saying Wall Street has become convinced too quickly that the Fed can achieve a soft landing for the economy and that the 19.5% run for the S&:P 500 through the first seven months of this year was overdone.

In the bond market, Treasury yields tumbled as investors moved into investments considered safer.

The yield on the 10-year Treasury fell to 3.98% from 4.10% late Monday. It helps set rates for mortgages and other loans.

The two-year Treasury yield, which more closely tracks expectations for the Fed, fell to 4.73% from 4.79%.

Continue Reading

Sports

Utes’ Whittingham reenergized after ’24 free fall

Published

on

By

Utes' Whittingham reenergized after '24 free fall

FRISCO, Texas — A dynamic new quarterback, a new offensive system and two projected first-round picks up front have Utah coach Kyle Whittingham feeling enthusiastic about the Utes’ chances of bouncing back from a disastrous debut season in the Big 12.

Utah was voted No. 1 in the Big 12 preseason poll last year after joining from the Pac-12, but a brutal run of injuries and inconsistency resulted in a seven-game conference losing streak and a 5-7 finish — the program’s first losing season since 2013.

After weeks of contemplation about his future and what was best for the program, Whittingham, the third-longest-tenured head coach in FBS, decided in December to return for his 21st season with the Utes.

“The bottom line and the final analysis was I couldn’t step away on that note,” Whittingham told ESPN at Big 12 media days Wednesday. “It was too frustrating, too disappointing. As much as college football has changed with all the other factors that might pull you away, that was the overriding reason: That’s not us, that’s not who we are. It just left a bad taste in my mouth. I did not want to miss the opportunity to try to get that taste out.”

“The bottom line and the final analysis was I couldn’t step away on that note. It was too frustrating, too disappointing. … That’s not us. That’s not who we are. It just left a bad taste in my mouth. I did not want to miss the opportunity to try to get that taste out.”

Utah coach Kyle Whittingham on going 5-7 in 2024

Whittingham and Utes defensive coordinator Morgan Scalley conducted a national search for a new offensive coordinator and quickly zeroed in on New Mexico‘s Jason Beck. Then they managed to land Devon Dampier, Beck’s first-team All-Mountain West quarterback, via the transfer portal.

After finishing 11th nationally in total offense with 3,934 yards and 31 total touchdowns and putting up the fourth-most rushing yards (1,166) among all FBS starters, Dampier followed his coach to Salt Lake City and immediately asserted himself as a difference-maker for a program that had to start four different QBs in 2024.

“He’s a terrific athlete,” Whittingham said. “He’s a guy that, if spring is any indication, he’s an exciting player, and we can’t wait to watch him this season. … He’s got that ‘it’ factor. He’s a leader. Needless to say, very excited to see what he does for us.”

They’ve surrounded Dampier with 21 more newcomers via the transfer portal and will protect him with two returning starters at tackle in Spencer Fano and Caleb Lomu, who are projected first-round NFL draft picks by ESPN’s Matt Miller.

“We feel they’re the best tandem in the country,” Whittingham said. “The offensive line in general, I feel, it’s the best since I’ve been there. And that’s quite a statement. We’ve had some really good offensive lines. We’ve got two first-rounders and three seniors inside that have played a lot of good football for us. That better be a strength of ours, and that’s what we’re counting on.”

Whittingham has previously said he did not want to coach past the age of 65. Now that he’s 65, he acknowledges that he might’ve arrived at a different decision about his future had the Utes ended up winning the Big 12 in 2024. He is reenergized about getting them back into contention, but he’s not ready to say whether this season might be his last.

“The best answer I can give you is, right now, I’m excited and passionate about going to work every single day,” Whittingham said. “As soon as that changes, I’ll know it’s time. I’m just counting on knowing when the time is right. I can’t tell you exactly what the circumstances will be other than losing the fire in the belly.”

Continue Reading

Sports

MLB to utilize ABS challenge system during ASG

Published

on

By

MLB to utilize ABS challenge system during ASG

The automated ball-strike system is coming to the All-Star Game next week in Atlanta.

MLB officials added the feature to the annual exhibition game knowing it could be a precursor to becoming a permanent part of the major leagues as soon as next year.

The same process used this past spring training will be used for the Midsummer Classic: Each team will be given two challenges with the ability to retain them if successful. Only a pitcher, catcher or hitter can ask for a challenge and it has to happen almost immediately after the pitch. The player will tap his hat or helmet indicating to the umpire he wants to challenge while any help from the dugout or other players on the field is not allowed.

MLB officials say 72% of fans who were polled during spring training said the impact of ABS on their experience at the game was a “positive” one. Sixty-nine percent said they’d like it part of the game moving forward. Just 10% expressed negativity toward it.

MLB’s competition committee will meet later this summer to determine if ABS will be instituted next season after the league tested the robotic system throughout the minor leagues and spring training in recent years. Like almost any rule change, there were mixed reviews from players about using ABS but nearly all parties agree on one point: They prefer a challenge system as opposed to the technology calling every pitch.

As was the case in spring training, once a review is initiated, an animated replay of the pitch will be shown on the scoreboard and the home plate umpire will either uphold the call or overturn it. ABS uses Hawk-Eye system technology which tracks the pitch trajectory and location in relation to the strike zone, providing an instant assessment which can be relayed to the home plate umpire.

The All-Star Game will be played at Truist Park in Atlanta on Tuesday.

Continue Reading

Sports

Royals sign former Cy Young winner Keuchel

Published

on

By

Royals sign former Cy Young winner Keuchel

The Kansas City Royals have signed former Cy Young Award winner Dallas Keuchel to a minor league contract, the team announced Wednesday.

The 37-year-old left-hander will start at Triple-A Omaha and will earn a prorated $2 million salary if he reaches the big leagues, sources tell ESPN’s Jeff Passan.

Keuchel has not pitched in the majors for nearly a full calendar year. He elected to become a free agent on July 18, 2024, after being designated for assignment by the Milwaukee Brewers.

In four starts with the Brewers last season, Keuchel had a 5.40 ERA in 16 2/3 innings without a decision. In 13 major league seasons, the 2015 American League Cy Young winner with the Houston Astros is 103-92 with a 4.04 ERA in 282 appearances (267 starts).

After pitching his first seven seasons with the Astros, Keuchel has made appearances for six different teams since 2019. He won a World Series with Houston in 2017 and is a two-time All-Star selection and five-time Gold Glove winner.

Information from Field Level Media was used in this report.

Continue Reading

Trending