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Stock futures unchanged after Dow, S&P 500 start year at all-time highs

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U.S. stocks were mixed on Tuesday as investors weighed a trove of fresh economic data, including a new read on the ISM Manufacturing Index and the Labor Department’s latest job openings. 

On the employment side, latest prints indicate demand for workers was historically high in November, pointing to continued labor shortages that have strained employers looking for workers. Meanwhile, the ISM’s release showed manufacturing slowed in December amid some cooling in demand for goods, but supply constraints are starting to ease.

The Dow Jones Industrial Average extended its rally while the S&P 500 ticked down after both indexes set records in Monday’s session. The Nasdaq shed 1.8%, or 280 points in intraday trading. 

“When I think about the market and the economy right now, I think about momentum,” Baird market strategist Michael Antonelli told Yahoo Finance Live.

“Momentum is one of the most durable factors when it comes to the stock market,” he said. “If you looked at new all-time highs last year, there were actually more new all-time highs than in the entire ’70s and 2000s combined, those two decades — we’ve got a lot going for us right now.”

The S&P 500’s performance on Monday showed the index was powered by its own velocity indeed, picking up right where it left off in 2021, ending a banner year with 70 closing records and its third annual double digit increase of 27%.

The Nasdaq also powered on to start 2022 trading, lifted mostly by landmark days for Apple (AAPL) and Tesla (TSLA), some of its most heavily-weighted stocks. Apple (AAPL) rallied 3% on Monday to briefly cross a $3 trillion market capitalization, making it the first company to reach that milestone. Shares were mostly flat in intraday trading on Tuesday at $182.12 a piece

Meanwhile, Tesla (TSLA) began the new year with a 13% daily gain on Monday after its fourth quarter vehicle deliveries smashed estimates. Wedbush analyst and Tesla bull Dan Ives thinks it’s just the beginning for the electric vehicle maker, which he predicts will hit a $2 trillion market capitalization in about 18 months. The stock was down 2.74% on Tuesday to $1,166.62 per share.

The “January Effect” seems so far underway. Wall Street theorizes this perception of a seasonal rise in U.S. equities during the first month of the year is caused by an increase in purchasing following the drop in prices that occurs in December when investors sell positions that have declined in order to take the capital loss in that calendar year’s taxes. Some also think the anomaly is the result of traders using year-end cash bonuses to purchase equities the following month.

Strategists have made more than 5,000 calls for year-end S&P 500 targets. With profits expected to trend up, lofty equity valuations growing higher, and a strong pipeline for IPOs in the works, many think stocks will go up — some just believe that not as much.

Among them, Insigneo Financial Group CIO Ahmed Riesgo said an internal rotation is likely in 2022, with stocks that performed very well last year set to potentially underperform and drag the market down a bit while the vast majority of stocks will shoot up. Riesgo predicted mid- to single-digit returns for the [S&P 500] next year.”

Royce Investments co-CIO Francis Gannon shared similar sentiments with Yahoo Finance Live.

“You’re going to see more muted returns in the market this year,” he said. “But I do think that small caps have an edge here over their large-cap brethren just because of the fact that you’re going to see very strong earnings growth.”

11:20 a.m. ET: Apple turns red after reaching $3 trillion milestone

Shares of Apple (AAPL) dipped more than 1% during midday trading after the iPhone-maker rallied in Monday’s session toward a $3 trillion market capitalization.

The decline contributed to losses in the Nasdaq as the index pared Monday’s gains to edge 1.8% lower, shedding 280 points.

11:07 a.m. ET: Toyota dethrones GM as No. 1 automaker

Japanese carmaker Toyota Motor Corp (T) topped General Motors Co (GM) in U.S. sales last year, unseating the Detroit-based vehicle company as the country’s leader in auto sales for the first time in nearly a century. 

Toyota sold 2.332 million vehicles in the United States in 2021, beating 2.218 million for General Motors, the companies reported on Tuesday. GM’s U.S. sales slumped 13% for 2021, while Toyota was up 10%. In 2020, GM’s U.S. sales totaled 2.55 million, compared with Toyota’s 2.11 million and Ford’s 2.04 million.

Shares of GM were up more than 5% in morning trading to $64.25 a piece. Toyota was up nearly the same amount, trading 4.92% higher at $195.45.

10:21 a.m. ET: Manufacturing slips amid lower demand for goods

The Institute for Supply Management (ISM) reported its latest index of national factory activity fell in to 58.7 last month, signaling a cooling demand for goods.

December’s print came in below consensus estimates of 60.2 and lower than the previous month’s read of 61.1, according to Bloomberg Data. Readings above 50 indicate an expansion in manufacturing

Meanwhile, data showed that supply chain constraints are starting to ease. The ISM survey’s measure of supplier deliveries declined to 64.9 from 72.2 in November, with prints above 50% suggesting slower deliveries to factories.

10:05 a.m. ET: Job openings hold near a record high

Demand for workers remained historically high in November, pointing to continued labor shortages that have strained employers.

The Department of Labor reported 10.562 million job openings in November in a fresh read out Tuesday on its Labor Turnover Summary (JOLTS). The figure came in below October’s print of 11.033, based on the government’s first estimate for the month. Consensus economist estimates pointed to a 11.079 million in November, according to Bloomberg data.

The data does not yet meaningfully capture the impact of rising cases of COVID on employment in the latest wave of the virus. Some economists suggested labor shortages may be worsened in the near-term due to the latest surge.

“Looking ahead, the Omicron variant wave will likely lead to some short-term weakness in the labor market,” Sam Bullard, senior economist for Wells Fargo, wrote in a note published earlier this week. “However, we believe this will be temporary and that the pace of hiring should pick back up by the spring.”

9:54 a.m. ET: Ford gets a move on EV truck production

Ford Motor Company (F) plans to nearly double annual production capacity for its popular F-150 Lightning electric pickup to 150,000 vehicles to keep up with a surge in demand ahead of its arrival at U.S. dealers this spring, the company said on Tuesday.

The model has attracted nearly 200,000 reservations already, far outpacing the automaker’s initial production capacity for 70,000-80,000 vehicles.

Ford’s announcement comes as its electric truck vehicle race heats up with competitor General Motors Co (GM), which is scheduled to unveil the Chevrolet Silverado electric pickup on Wednesday set to go on sale in early 2023.

Shares of Ford climbed 6.64% at open to $23.22 a piece. Rival GM was also up 2.56% to $63.73 per share.

9:30 a.m. ET: Markets charge forward into second straight day of gains

Here’s what happened in the markets at the start of the day’s trading session:

  • S&P 500 (^GSPC): +15.07 (+0.31%) to 4,811.63

  • Dow (^DJI): +182.71 (+0.50%) to 36,767.77

  • Nasdaq (^IXIC): +4.23 (+0.03%) to 15,837.03

  • Crude (CL=F): +$0.47 (+0.62%) to $76.55 a barrel

  • Gold (GC=F): +$8.30 (+0.46%) to $1,808.40 per ounce

  • 10-year Treasury (^TNX): +4.4 bps to yield 1.6720%

7:33 a.m. ET: Stock futures point to continued gains

Here’s how contracts on the major indexes fared before market open:

  • S&P 500 futures (ES=F): +17.00 points (+0.36%), to 4,803.00

  • Dow futures (YM=F): +120.00 points (+0.33%), to 36,575.00

  • Nasdaq futures (NQ=F): +52.50 points (+0.32%) to 16,538.00

  • Crude (CL=F): +$0.11 (+0.14%) to $76.19 a barrel

  • Gold (GC=F): +1.10 (+0.06%) to $1,801.20 per ounce

  • 10-year Treasury (^TNX): 1.628 bps to yield 0.00%

6:02 p.m. Monday ET: Stock futures quietly open after record-setting session

Here were the main moves in markets heading into the overnight session:

  • S&P 500 futures (ES=F): -0.50 points (-0.01%), to 4,785.50

  • Dow futures (YM=F): -29.00 points (-0.08%), to 36,426.00

  • Nasdaq futures (NQ=F): +16.25 points (+0.10%) to 16,501.75

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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Teladoc Tumbled 38% After Big First-Quarter Loss. Is It Just a Pandemic Play?

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After pandemic drop, Canada’s detention of immigrants rises again By Reuters

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© Reuters. FILE PHOTO: Two closed Canadian border checkpoints are seen after it was announced that the border would close to “non-essential traffic” to combat the spread of novel coronavirus disease (COVID-19) at the U.S.-Canada border crossing at the Thousand Isla

By Anna Mehler Paperny

TORONTO (Reuters) – Canada is locking up more people in immigration detention without charge after the numbers fell during the pandemic, government data obtained by Reuters shows.

Authorities cite an overall rise in foreign travelers amid easing restrictions but lawyers say their detained clients came to Canada years ago.

Canada held 206 people in immigration detention as of March 1, 2022 – a 28% increase compared with March 1 of the previous year. Immigration detainees have not been charged with crimes in Canada and 68% of detainees as of March 1 were locked up because Canada Border Services Agency (CBSA) fears they are “unlikely to appear” at an immigration hearing, according to the data.

The rise puts Canada at odds with Amnesty International and other human rights groups that have urged Ottawa to end its use of indefinite immigration detention, noting CBSA has used factors such as a person’s mental illness as reason to detain them.

A CBSA spokesperson told Reuters that “when the number of entries (to Canada) goes up, an increase in detention is to be expected.” CBSA has said in the past it uses detention as a last resort.

A lawyer told Reuters her detained clients have been in Canada for years.

In the United Kingdom, too, immigration detention levels rose last year after dropping earlier in the pandemic, according to government statistics. Unlike Canada, the United States and Australia, European Union member states have limits on immigration detention and those limits cannot exceed six months.

The rise in detentions puts people at risk of contracting COVID-19 in harsh congregate settings, refugee lawyers say.

Julia Sande, Human Rights Law and Policy Campaigner with Amnesty, called the increase in detentions “disappointing but not surprising,” although she was reluctant to draw conclusions from limited data.

The number of immigration detainees in Canada dropped early in the pandemic, from a daily average of 301 in the fourth quarter (January through March) of 2019-20 to 126 in the first quarter (April through June) of 2020-21.

FEW NO-SHOWS AS DETENTIONS DROPPED

Detaining fewer people did not result in a significant increase in no-shows at immigration hearings – the most common reason for detention, according to Immigration and Refugee Board data.

The average number of no-shows as a percentage of admissibility hearings was about 5.5% in 2021, according to that data, compared to about 5.9% in 2019.

No-shows rose as high as 16% in October 2020, but a spokesperson for the Immigration and Refugee Board said this was due to people not receiving notifications when their hearings resumed after a pause in the pandemic.

Refugee lawyer Andrew Brouwer said the decline in detention earlier in the pandemic shows Canada does not need to lock up as many non-citizens.

“We didn’t see a bunch of no-shows. We didn’t see the sky fall … It for sure shows that the system can operate without throwing people in jail,” Brouwer said.

He added that detainees face harsh pandemic conditions in provincial jails – including extended lockdowns, sometimes with three people in a cell for 23 hours a day.

Refugee lawyer Swathi Sekhar said CBSA officials and the Immigration and Refugee Board members reviewing detentions took the risk of COVID-19 into account when deciding whether someone should be detained earlier in the pandemic but are doing so less now.

“Their position is that COVID is not a factor that should weigh in favor of release,” she said.

“We also see very, very perverse findings … [decision-makers] outright saying that individuals are going to be safer in jail.”

The Immigration and Refugee Board did not immediately respond to a Reuters request for comment.

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Nasdaq futures rise as market attempts comeback from April sell-off, Meta shares soar

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Stock futures rose in overnight trading as the market shook off the April sell-off and investors reacted positively to earnings from Meta Platforms.

Futures on the Dow Jones Industrial Average added 70 points or 0.2%. S&P 500 futures gained 0.7% and Nasdaq 100 futures jumped 1.2%.

The moves came as shares of Meta surged more than 18% after hours following a beat on earnings but a miss on revenue, a sign that investors may see signs of relief in the beaten-up tech sector. Shares were down 48% on the year heading into the results.

Meanwhile, shares of Qualcomm gained 5.6% in extended trading on the back of strong earnings while PayPal rose 5% despite issuing weak guidance for the second quarter.

“I think a lot of people want to believe that earnings are going to pull us out of this, but earnings are not what got us into this,” SoFi’s Liz Young told CNBC’s “Closing Bell: Overtime” on Wednesday. “… But the reality is there are so many macro headwinds still in front of us in the next 60 days that the market is just hard to impress.”

The after-hour activity followed a volatile regular trading session that saw the Nasdaq Composite stoop to its lowest level in 2022, as stocks looked to bounce back from a tech-led April sell-off. The index is down more than 12% since the start of April.

In Wednesday’s regular trading, the tech-heavy Nasdaq ended at 12,488.93, after rising to 1.7% at session highs. The Dow Jones Industrial Average rose 61.75 points, or 0.2%, to 33,301.93 propped up by gains from Visa and Microsoft, while the S&P 500 added 0.2% to 4,183.96.

Investors await big tech earnings on Thursday from Apple, Amazon and Twitter, along with results from Robinhood. Jobless claims are also due out Thursday.

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