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Stock Market Today: Dow Jones, S&P 500 Opened Higher; American Campus Communities Up On Acquisition News

Markets are up today as investors continue to wait for a slew of earnings reports
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Stock Market Today Mid-Morning Updates

On Tuesday, the Dow Jones Industrial Average is up by over 300 points as investors anticipate yet another slew of high-profile corporate earnings this week. Pharmaceutical giant Johnson & Johnson (NYSE: JNJ) is up by 3% today after posting mixed quarterly results. Diving in, the company reported a first quarter sales of $23.4 billion, slightly missing consensus estimates. It also lowered its 2022 sales forecast of $94.8 billion to $95.8 billion. This represents about $1 billion lower than the guidance provided in January.

Today, WeWork (NYSE: WE) is up today after Piper Sandler initiated coverage with an Overweight rating. The firm points to confidence in WeWork’s path to profitability and how well the flexible office model fits in a post-pandemic world. In other news, Plug Power (NASDAQ: PLUG) is also up today after it announced an agreement to supply liquid green hydrogen to Walmart (NYSE: WMT). Also, joining the Twitter (NYSE: TWTR) fray, Apollo Global Management was reported to be willing to provide financing for a Twitter buyout.

Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are down by 0.15% today while Microsoft (NASDAQ: MSFT) is up by 0.35%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading higher on Tuesday. Among the Dow financial leaders, Visa (NYSE: V) is up by 0.53% while JPMorgan Chase (NYSE: JPM) is also up by 1.04%.

Shares of EV leader Tesla (NASDAQ: TSLA) are up by 0.95% on Tuesday. Rival EV companies like Rivian (NASDAQ: RIVN) are down by 0.50%. Lucid Group (NASDAQ: LCID) is also up by 1.87% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) are trading lower today.

Dow Jones Today: Treasury Yields Breaches 2.9% On Rising Inflation Concern

Following the stock market opening on Tuesday, the S&P 500, Dow, and Nasdaq are trading lower at 0.79%, 0.89%, and 0.71% respectively. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is up by 0.75% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also up by 0.77%. 

The benchmark 10-year U.S. Treasury yield peaked at 2.92%, a level that has not been seen since 2018. This comes as bond traders continue to worry over concerns of rising inflation and tighter monetary policy. Concerns around red hot inflation has seen investors sell ouf of bonds in the last few months, pushing up yields. This builds on data released last week showing consumer and producer prices increasing in March. This could push the Federal Reserve to increase the size of its interest rate hikes as it tries to control inflation.

[Read More] Top Stock Market News For Today April 19, 2022

ACC Stock Soars With New Of Blackstone Acquiring American Campus Communities 

Making headlines today is American Campus Communities (NYSE: ACC) or ACC, for short. By and large, this is likely thanks to the student-housing firm being acquired by Blackstone (NYSE: BX). As of earlier today, the alternative investment giant is purchasing ACC for about $12.8 billion including debt. This values ACC at $65.47 per share. With Blackstone being a global leader in real estate investing, such a move is not all that surprising. To-date, the company has over $279 billion in investor capital under management.

Commenting on the current deal is ACC’s CEO Bill Bayless. He says, “This transaction delivers compelling, immediate, and certain value to our shareholders while positioning ACC to further expand our competitive advantage as we continue in our quest to lead the student housing industry to new heights. Blackstone’s expertise, resources and consistent access to capital will allow us to rapidly leverage our platform and core competencies to entrepreneurially grow our core business and to pursue additional innovative opportunities. Moving forward together, the combined synergies of our organizations will enable us to better serve our current and future residents and university partners.

At the same time, Blackstone also highlights ACC’s “best-in-class,” portfolio and platform as a key reason for the acquisition. Additionally, ACC’s existing partnerships with some of the top universities in the country would also be worth considering. Overall, it seems that Blackstone is planning to leverage the rise in rent as students return to life on campus. Because of all this, ACC stock is now up by over 12% at today’s opening bell.

ACC stock
Source: TradingView

[Read More] Best Stocks To Invest In Now? 3 Coronavirus Vaccine Stocks To Know

Zendesk Stock Gains Following News Of Possible Sale

Meanwhile, customer relations software firm Zendesk (NYSE: ZEN) is also gaining attention in the stock market today. Similar to ACC, this seems to be due to recent reports on the M&A front. Namely, sources from Bloomberg note that the company is potentially looking for buyers. In other words, Zendesk is exploring a sale and investors seem to be keen on ZEN stock now. As it stands, the company’s shares are gaining by over 6% at today’s market open.

Going into the details, Bloomberg notes that Zendesk’s current move is the result of growing pressure from activist investor Jana Partners. The likes of which are pushing for Zendesk to either add more Jana members to its board or get acquired. For now, Zendesk is reportedly working with Qatalyst Partners and is considering possible buyers. Among which, reports speculate that software firms and private equity groups could be likely suitors.

For one thing, this would not be a first for tensions between Jana and the Zendesk board. Previously back in February, Zendesk did reject a takeover offer from a consortium of firms. Should the company have accepted the deal, it would value Zendesk at around $127 to $132 per share at the time. Not to mention, the company also did fail to acquire SurveyMonkey parent company Momentive (NASDAQ: MNTV) around the same time. As you can imagine all this would serve to put ZEN stock in the limelight today. 

ZEN stock
Source: TradingView

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The post Stock Market Today: Dow Jones, S&P 500 Opened Higher; American Campus Communities Up On Acquisition News appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.com.

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China Shortens Travel Quarantine In COVID Zero Shift

China Shortens Travel Quarantine In COVID Zero Shift

China unexpectedly slashed quarantine times for international travelers, to just one…

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China Shortens Travel Quarantine In COVID Zero Shift

China unexpectedly slashed quarantine times for international travelers, to just one week, which suggests Beijing is easing COVID zero policies. The nationwide relaxation of pandemic restrictions led investors to buy Chinese stocks.

Inbound travelers will only quarantine for ten days, down from three weeks, which shows local authorities are easing draconian curbs on travel and economic activity as they worry about slumping economic growth sparked by restrictive COVID zero policies earlier this year that locked down Beijing and Shanghai for months (Shanghai finally lifted its lockdown measures on May 31). 

"This relaxation sends the signal that the economy comes first ... It is a sign of importance of the economy at this point," Li Changmin, Managing Director at Snowball Wealth in Guangzhou, told Bloomberg

At the peak of the COVID outbreak, many residents in China's largest city, Shanghai, were quarantined in their homes for two months, while international travelers were under "hard quarantines" for three weeks. The strict curbs appear to have suppressed the outbreak, but the tradeoff came at the cost of faltering economic growth. 

The announcement of the shorter quarantine period suggests a potentially more optimistic outlook for the Chinese economy. Bullish price action lifted CSI 300 Index by 1%, led by tourism-related stocks (LVMH shares rose as much as 2.5%, Richemont +3.1%, Kering +3%, Moncler +3%). 

"The reduction of travel restrictions will be positive for the luxury sector, and may boost consumer sentiment and confidence following months of lockdowns in China's biggest cities," Barclays analysts Carole Madjo wrote in a note. 

CSI 300 is up 19% from April's low, nearing bull market territory. 

Jane Foley, a strategist at Rabobank in London, commented that "this news suggests that perhaps the authorities will not be as stringent with Covid controls as has been expected." 

"The news also coincides with reports that the PBOC is pledging to keep monetary policy supportive," Foley pointed out, referring to Governor Yi Gang's latest comment. 

She said, "this suggests a potentially more optimistic outlook for the Chinese economy, which is good news generally for commodity exporters such as Australia and all of China's trading partners." 

Even though the move is the right step in the right direction, Joerg Wuttke, head of the European Chamber of Commerce in China, said, "the country cannot open its borders completely due to relatively low vaccination rates ... This, in conjunction with a slow introduction of mRNA vaccines, means that China may have to maintain a restricted immigration policy beyond the summer of 2023." 

Alvin Tan, head of Asia currency strategy in Singapore for RBC Markets, also said shortening quarantine time for inbound visitors shouldn't be a gamechanger, and "there's nothing to say that it won't be raised tomorrow." 

Tyler Durden Tue, 06/28/2022 - 07:38

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Economics

Energy Stocks Are Down, But Remain Top Sector Performer

High-flying energy shares have hit turbulence in recent weeks but remain, by far, the leading performer for US equity sectors so far in 2022, as of yesterday’s…

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High-flying energy shares have hit turbulence in recent weeks but remain, by far, the leading performer for US equity sectors so far in 2022, as of yesterday’s close (June 27), based on a set of ETFs. But with global growth slowing, and recession risk rising, analysts are debating if it’s time to cut and run.

The broad-based correction in stocks has weighed on energy shares lately. Energy Sector SPDR (XLE) has fallen sharply after reaching a record high on June 8. Despite the slide, XLE remains the best-performing sector by a wide margin year to date via a near-36% gain in 2022.

By contrast, the overall US stock market is still in the red via SPDR S&P 500 (SPY), which is down nearly 18% year to date. The worst-performing US sector: Consumer Discretionary Sector SPDR (XLY), which is in the hole by almost 29% this year.

The case for, and against, seeing energy’s recent weakness as a buying opportunity can be filtered through two competing narratives. The bullish view is that the Ukraine war continues to disrupt energy exports from Russia, a major source of oil and gas. As a result, pinched supply will continue to exert upward pressure on prices in a world that struggles to quickly find replacements for lost energy sources. The question is whether growing headwinds from inflation, rising interest rates and other factors will take a toll on global economic growth to the point the energy demand tumbles, driving prices down.

The market seems to be entertaining both possibilities at the moment and is still processing the odds that one or the other scenario prevails, or not. Meanwhile, energy bulls predict that the pullback in oil and gas prices is only a temporary run of weakness in an ongoing bull market for energy.

Goldman Sachs, in particular, remains bullish on energy and advises that the potential for more prices gains in crude oil and other products “is tremendously high right now,” according to Jeffrey Currie, the bank’s global head of commodities research. “The bottom line is the situation across the energy space is incredibly bullish right now. The pullback in prices we would view as a buying opportunity,” he says. “At the core of our bullish view of energy is the underinvestment thesis. And that applies more today than it did two weeks, three weeks ago, because we’ve just seen exodus of money from the space… investment continues to run from the space at a time it should be coming to the space.”

Meanwhile, a bit of historical perspective on momentum for all the sector ETFs listed above reminds that the trend direction remains bearish overall. But contrarians take note: the downside bias is close to the lowest levels since the pandemic first took a hefty bite out of market action back in March 2020 (see chart below). This may or may not be a long-term buying opportunity, but the odds for a bounce, however, temporary, look relatively strong at the moment.


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Economics

Five things you can do to help you have a more positive birth experience

Becoming a parent can be nerve-wracking – but there are many things you can do to feel more in control.

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Don't be afraid to make your preferences clear to your care provider. Syda Productions/ Shutterstock

Whether you’re a first time parent or have had children before, you’re probably willing to try anything to ensure you have the most positive birth experience you can. After all, the kind of birth experience you have can not only affect your own mental health, but can have an affect on parent-child bonding, as well as partner-to-partner relationships for years after giving birth.

It can be confusing to know what to expect or where to turn to for advice, especially as maternity services have changed due to falling staff numbers and the continued impact of COVID-19. But here are a few things you can do yourself as you navigate your maternity care, which may help you have a more positive birth experience:

1. Get educated

Studies have shown that signing up for antenatal classes can help reduce fear, depression and anxiety – both during pregnancy and after birth.

Typically, antenatal classes will help you understand what’s happening to your body during pregnancy and explain the birth process. They may also teach you coping strategies to help relax during labour, alongside guidance on caring for your new baby. Antenatal classes can also be a great way of meeting other parents going through the same thing as you.

Another option is creating a personalised care and support plan, which is offered by most NHS trusts in the UK. This is a tool you can use with your care providers to explore what’s important to you – and discuss what your range of options are, such as your preferred place of birth, or whether you prefer skin-to-skin contact with your baby immediately after birth.

Understanding what your body’s going through, and making a personalised plan for your birth, may help you feel more prepared and less anxious about what to expect.

2. Know your carers

Being cared for by one nominated midwife, or being assigned to a team of familiar midwives, is shown to be associated with better outcomes for you and your baby – including decreased chance of having a premature labour and lower likelihood of needing interventions (such as birth with the help of forceps). You’re also more likely to be satisfied with your overall experience.

When an allocated midwife is not an option this makes choosing the right birth partners crucial. They can not only offer you reassurance, encouragement and support but can be your advocate, help you try different positions in labour and help provide you with snacks and drinks. Most typically these would be trusted loved ones. But be aware that research shows birth partners may also feel anxious or overwhelmed at taking on this role, and may struggle with seeing a loved one in pain – so it’s important to be realistic about your expectations, and choose the right person. It may be the best birth partner for you is a close friend or relative.

3. Challenge care recommendations if you aren’t happy

There are likely to be many other options available to you – such as where you might give birth, or how you want to be cared for during labour.

During antenatal appointments be sure to pause, think and ask about benefits, risks and alternatives to the care being proposed. Research shows how important choice and personalised care are for expectant parents who want their voices and preferences to be acknowledged, and to receive consistent advice.

Expectant couple speak with female doctor in doctor's office.
Bringing a loved one or partner with you can make it easier to voice any concerns you may have. wavebreakmedia/ Shutterstock

If you have concerns over a suggestion your care providers have made or have questions, don’t be afraid to ask. Take your birth partner with you if you prefer, who can empower you to ensure your voice is heard. After all, care providers are duty bound to ensure you make fully informed choices.

4. Don’t always listen to your friends and family

Once people hear you have a baby on the way it seems everyone feels the need, without asking, to tell you the full (and often graphic) details of their own children’s birth.

But it’s perfectly acceptable to politely change the subject if you don’t want to listen, or if hearing these stories makes you nervous or worry. It’s also worth remembering that each person has a different labour and birth, even with their own children – so what was true for someone else is likely not to be the same for you. While it can be helpful for some people to debrief after the birth, it’s okay to avoid hearing this yourself if it makes your nervous, and maybe suggest they speak with a professional about their experience instead of telling you.

5. Visit your preferred place of birth

Many maternity units are now opening up their doors again to tours and informal visits – and those that aren’t are doing this virtually.

Becoming familiar with where you might give birth – even down to where you might park on the day – can help you feel more confident about giving birth. It may also remove some of the unknown, helping you regain a sense of control – which in itself is linked to a more positive birth experience.

For those planning a homebirth, speak to your midwife about how you can improve your space to facilitate the most safe and positive experience. For one of the most important days of your life, visualising where this will take place ahead of time can help you feel more confident and in control.

Ultimately, it’s important to remember that no one can predict exactly how your labour and birth journey will go. Even after heeding the above steps – there’s always a chance you may need to consider a plan B, C or even D. But no matter what, remember you’ve done your very best, and you’re not likely to repeat this exact experience the next time.

Claire Parker does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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