REUTERS
"Wall Street closes higher as investors digest earnings, megacap outlook"
By Chibuike Oguh
April 23, 2024
Summary
* Tesla kicks off Magnificent Seven earnings
* GM shares rise on upbeat Q1 results
* JetBlue plunges after trimming revenue forecast
* Indexes end up: Dow 0.69%, S&P 1.20%, Nasdaq 1.59%
April 23 (Reuters) - U.S. stocks closed higher on Tuesday following positive earnings from top-tier companies and as investors were focused on quarterly results from Magnificent Seven and other megacap growth stocks.
Tesla kicked off the earnings cycle for technology heavyweights after markets closed on Tuesday, announcing the launch of new electric vehicle models and quarterly revenue that missed analyst estimates.
Its shares jumped 6% in extended hours trading.
That will be followed by results from other tech majors, including Microsoft, Alphabet, and Meta Platforms later this week.
Markets were also buoyed by upbeat earnings from companies such as General Motors, which closed up 4.4% after the automaker's better-than-expected quarterly results.
Ten out of 11 S&P 500 sectors were advancing led by gains in equities in communication services and technology sectors.
The S&P Materials sector ended lower dragged by steelmaker Nucor Corp which lost ground by 8.9% after a first-quarter earnings miss.
"We're having a continuation of an oversold balance that started yesterday and the catalyst today is that markets are now refocused on earnings reports across a wide array of sectors that were strong," said Keith Lerner, co-chief investment officer at Truist Advisory Services in Atlanta.
The Dow Jones Industrial Average rose 263.71 points, or 0.69%, to 38,503.69, the S&P 500 gained 59.95 points, or 1.20%, to 5,070.55 and the Nasdaq Composite gained 245.34 points, or 1.59%, to 15,696.64.
Data on Tuesday showed that U.S. business activity cooled in April to a four-month low due to weaker demand, while rates of inflation eased slightly even as input prices rose sharply, suggesting possible relief ahead for rising consumer prices.
Investors will be eyeing the release of the March Personal Consumption Expenditures (PCE) index - the Federal Reserve's preferred inflation gauge - which is due on Friday.
Money markets are now pricing in just about 43 basis points of interest-rate cuts, down from about 150 bps seen at the start of the year, according to LSEG data.
"The PMI report was a little bit weaker and the employment was a little bit weaker and the market at this point is taking that is a bad-news-there-is-good-news, meaning the people are becoming too hawkish on Fed expectations," Lerner added.
Spotify rose 11.4% after the Swedish music streaming giant posted gross profit that topped 1 billion euros ($1.1 billion) for the first time.
Bullish full-year profit forecast helped to lift GE Aerospace shares by 8.3%.
Danaher gained 7.2% after the life sciences firm beat quarterly profit and sales expectations.
Shares of JetBlue plunged nearly 19% as the low-cost carrier trimmed its annual revenue forecast following lukewarm first-quarter revenue.
Advancing issues outnumbered decliners by a 4.89-to-1 ratio on the NYSE.
There were 86 new highs and 30 new lows on the NYSE.
On the Nasdaq, 3,051 stocks rose and 1,135 fell as advancing issues outnumbered decliners by a 2.69-to-1 ratio.
The S&P 500 posted 12 new 52-week highs and 2 new lows while the Nasdaq recorded 57 new highs and 85 new lows.
Volume on U.S. exchanges was 10.57 billion shares, compared with the 11.07 billion average for the last 20 days.
Reporting Chibuike Oguh in New York; additional reporting by Shristi Achar A and Shashwat Chauhan in Bengaluru; Editing by Aurora Ellis
https://www.reuters.com/markets/us/futu ... 024-04-23/
THE DAILY NEWS
Re: THE DAILY NEWS
REUTERS
"US business activity cools in April; inflation measures mixed"
By Reuters
April 23, 2024
April 23 (Reuters) - U.S. business activity cooled in April to a four-month low due to weaker demand, while rates of inflation eased slightly even as input prices rose sharply, suggesting some possible relief ahead as the Federal Reserve looks for signs that the economy is ebbing enough to bring inflation down further.
S&P Global said on Tuesday that its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, fell to 50.9 this month from 52.1 in March.
A reading above 50 indicates expansion in the private sector.
The slowdown reflected weaker rates of growth in both the manufacturing and services sectors, with activity easing to three- and five-month lows, respectively.
That in turn meant employment, which the Fed is watching closely for indications of a drop off, fell for the first time since June 2020, with the reduction focused on services.
The survey suggested that the economy lost momentum at the beginning of the second quarter compared to the January-March quarter.
According to a Reuters survey of economists, GDP likely increased at a 2.4% annualized rate last quarter.
The United States continues to outperform its global peers, despite 525 basis points worth of interest rate hikes from the Federal Reserve since March 2022 to tame inflation.
The Fed has recently been spooked by a string of stronger-than-expected inflation and employment readings, which suggested its fight to bring inflation back down to the central bank's 2% target rate has stalled or even reversed.
The Fed meets next week and is expected to leave its policy rate unchanged in the current 5.25%-5.50% range.
Last week, a chorus of Fed officials backed away from signaling at least one rate cut this year, instead saying only that recent data meant monetary policy needs to be restrictive for longer.
The S&P Global survey's measure of new orders received by private businesses dropped to 48.4 from 51.7 in March, the first decline in six months, while its measure of prices paid for inputs declined to 56.5, off the six-month high of 58.7 reached in March but still a solid rate.
The output prices gauge fell to 54.1, off the ten-month high of 56.4 recorded in March, but also still elevated.
In a reversal of trends seen last year when wage-related services sector price pressures intensified while manufacturing input costs cooled, higher raw material and fuel prices resulted in the fastest rise in manufacturing input costs in a year in April, with manufacturing now recording steeper inflation increases in three of the past four months.
Service providers, by contrast, reported the second-lowest overall cost increase in three and half years.
"The deterioration of demand and cooling of the labor market fed through to lower price pressures, as April saw a welcome easing in rates of increase for selling prices for both goods and services," said Chris Williamson, chief business economist at S&P Global Market Intelligence.
"Firms' future output expectations slipped to a five-month low amid heightened concern about the outlook."
Manufacturing entered contraction territory, with the survey's flash manufacturing PMI slipping to 49.9 this month from 51.9 in March.
New orders shrank slightly while growth in employment slowed, albeit modestly, and supply chains showed signs of spare capacity.
The survey's flash services sector PMI dipped to 50.9 in April from 51.7 in the prior month.
Reporting by Lindsay Dunsmuir; Editing by Chizu Nomiyama
https://www.reuters.com/markets/us/us-b ... 024-04-23/
"US business activity cools in April; inflation measures mixed"
By Reuters
April 23, 2024
April 23 (Reuters) - U.S. business activity cooled in April to a four-month low due to weaker demand, while rates of inflation eased slightly even as input prices rose sharply, suggesting some possible relief ahead as the Federal Reserve looks for signs that the economy is ebbing enough to bring inflation down further.
S&P Global said on Tuesday that its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, fell to 50.9 this month from 52.1 in March.
A reading above 50 indicates expansion in the private sector.
The slowdown reflected weaker rates of growth in both the manufacturing and services sectors, with activity easing to three- and five-month lows, respectively.
That in turn meant employment, which the Fed is watching closely for indications of a drop off, fell for the first time since June 2020, with the reduction focused on services.
The survey suggested that the economy lost momentum at the beginning of the second quarter compared to the January-March quarter.
According to a Reuters survey of economists, GDP likely increased at a 2.4% annualized rate last quarter.
The United States continues to outperform its global peers, despite 525 basis points worth of interest rate hikes from the Federal Reserve since March 2022 to tame inflation.
The Fed has recently been spooked by a string of stronger-than-expected inflation and employment readings, which suggested its fight to bring inflation back down to the central bank's 2% target rate has stalled or even reversed.
The Fed meets next week and is expected to leave its policy rate unchanged in the current 5.25%-5.50% range.
Last week, a chorus of Fed officials backed away from signaling at least one rate cut this year, instead saying only that recent data meant monetary policy needs to be restrictive for longer.
The S&P Global survey's measure of new orders received by private businesses dropped to 48.4 from 51.7 in March, the first decline in six months, while its measure of prices paid for inputs declined to 56.5, off the six-month high of 58.7 reached in March but still a solid rate.
The output prices gauge fell to 54.1, off the ten-month high of 56.4 recorded in March, but also still elevated.
In a reversal of trends seen last year when wage-related services sector price pressures intensified while manufacturing input costs cooled, higher raw material and fuel prices resulted in the fastest rise in manufacturing input costs in a year in April, with manufacturing now recording steeper inflation increases in three of the past four months.
Service providers, by contrast, reported the second-lowest overall cost increase in three and half years.
"The deterioration of demand and cooling of the labor market fed through to lower price pressures, as April saw a welcome easing in rates of increase for selling prices for both goods and services," said Chris Williamson, chief business economist at S&P Global Market Intelligence.
"Firms' future output expectations slipped to a five-month low amid heightened concern about the outlook."
Manufacturing entered contraction territory, with the survey's flash manufacturing PMI slipping to 49.9 this month from 51.9 in March.
New orders shrank slightly while growth in employment slowed, albeit modestly, and supply chains showed signs of spare capacity.
The survey's flash services sector PMI dipped to 50.9 in April from 51.7 in the prior month.
Reporting by Lindsay Dunsmuir; Editing by Chizu Nomiyama
https://www.reuters.com/markets/us/us-b ... 024-04-23/
Re: THE DAILY NEWS
REUTERS
"US new home sales rebound to six-month high; rising mortgage rates a concern"
By Lucia Mutikani
April 23, 2024
Summary
* New home sales increase 8.8% in March
* Median house price falls 1.9% to $430,700 from year ago
WASHINGTON, April 23 (Reuters) - Sales of new U.S. single-family homes rebounded in March from February's downwardly revised level, drawing support from a persistent shortage of previously owned houses on the market, but momentum could be curbed by a resurgence in mortgage rates.
The report from the Commerce Department on Tuesday also showed the median house price jumped to a seven month-high from February, likely as fewer builders offered price cuts and sales shifted to higher priced homes.
Rising prices and mortgage rates could make housing even more unaffordable, especially for first-time buyers.
"New home sales have remained remarkably strong recently," said Oliver Allen, senior U.S. economist at Pantheon Macroeconomics.
"That said, the renewed rise in mortgage rates and dip in mortgage applications over the past couple of months means that new home sales will probably tread water at best in the near-term, while existing home sales will fall."
New home sales jumped 8.8% to a seasonally adjusted annual rate of 693,000 units last month, the highest level since September, the Commerce Department's Census Bureau said.
The sales pace for February was revised down to 637,000 units from the previously reported 662,000 units.
Economists polled by Reuters had forecast new home sales, which account for about 14% of U.S. home sales, would advance by a rate of 670,000 units.
New home sales are counted at the signing of a contract, making them a leading indicator of the housing market.
They, however, can be volatile on a month-to-month basis.
Sales increased 8.3% on a year-on-year basis in March.
Though the new housing market remains underpinned by the dearth of previously owned homes for sale, rising mortgage rates are taking a toll on affordability.
Data last week showed single-family housing starts and building permits declined in March.
Sentiment among single-family homebuilders was unchanged in April, with the National Association of Home Builders noting that "buyers are hesitating until they can better gauge where interest rates are headed."
The average rate on the popular 30-year fixed-rate mortgage has risen back above 7%, data from mortgage finance agency Freddie Mac showed, as strong reports on the labor market and inflation suggested the Federal Reserve could delay an anticipated interest rate cut this year.
A few economists doubt the U.S. central bank will lower borrowing costs in 2024.
BROAD INCREASE
New home sales rose in all four regions last month, with the Northeast posting a 27.8% surge.
Sales in the Midwest gained 5.3% and increased 7.7% in the densely populated South.
They vaulted 8.6% in the West.
Despite the weakness in permits last month, economists believed residential investment picked up in the first quarter after slowing considerably in the October-December period.
The government is scheduled to publish its snapshot of gross domestic product for the first quarter on Thursday.
Growth estimates for the period are as high as a 3.1% annualized rate.
The economy grew at a 3.4% pace in the fourth quarter.
Stocks on Wall Street were trading higher.
The dollar fell against a basket of currencies.
U.S. Treasury prices rose.
The median new house price increased 6% to $430,700 from February.
That was the highest level since last August.
Prices, however, slipped 1.9% from a year ago.
Most of the new homes sold last month were in the $300,000-$399,999 price range, followed by the $500,000-$749,000 price bracket.
Builders are constructing smaller and cheaper houses, but fewer of them are cutting prices.
The NAHB survey last week showed the share of builders cutting prices fell to 22% in April from 24% in March and 36% in December.
Fewer builders were also offering incentives to boost sales.
Overall house prices continue to rise because of the supply squeeze in the home resale market.
Data from mortgage finance agency Fannie Mae last week showed house prices increased 7.4% on a year-on-year basis in the first quarter compared to a 6.6% rise in the fourth quarter.
Fannie Mae upgraded its estimate for home price growth this year to 4.8% from 3.2% previously.
There were 477,000 new homes on the market at the end of March, up from 465,000 units in February.
At March's sales pace it would take 8.3 months to clear the supply of houses on the market, down from 8.8 months in February.
Houses under construction accounted for 59.1% of inventory.
Homes yet to be built made up 22.2% of supply, while completed houses accounted for 18.7%.
Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Paul Simao
https://www.reuters.com/markets/us/us-n ... 024-04-23/
"US new home sales rebound to six-month high; rising mortgage rates a concern"
By Lucia Mutikani
April 23, 2024
Summary
* New home sales increase 8.8% in March
* Median house price falls 1.9% to $430,700 from year ago
WASHINGTON, April 23 (Reuters) - Sales of new U.S. single-family homes rebounded in March from February's downwardly revised level, drawing support from a persistent shortage of previously owned houses on the market, but momentum could be curbed by a resurgence in mortgage rates.
The report from the Commerce Department on Tuesday also showed the median house price jumped to a seven month-high from February, likely as fewer builders offered price cuts and sales shifted to higher priced homes.
Rising prices and mortgage rates could make housing even more unaffordable, especially for first-time buyers.
"New home sales have remained remarkably strong recently," said Oliver Allen, senior U.S. economist at Pantheon Macroeconomics.
"That said, the renewed rise in mortgage rates and dip in mortgage applications over the past couple of months means that new home sales will probably tread water at best in the near-term, while existing home sales will fall."
New home sales jumped 8.8% to a seasonally adjusted annual rate of 693,000 units last month, the highest level since September, the Commerce Department's Census Bureau said.
The sales pace for February was revised down to 637,000 units from the previously reported 662,000 units.
Economists polled by Reuters had forecast new home sales, which account for about 14% of U.S. home sales, would advance by a rate of 670,000 units.
New home sales are counted at the signing of a contract, making them a leading indicator of the housing market.
They, however, can be volatile on a month-to-month basis.
Sales increased 8.3% on a year-on-year basis in March.
Though the new housing market remains underpinned by the dearth of previously owned homes for sale, rising mortgage rates are taking a toll on affordability.
Data last week showed single-family housing starts and building permits declined in March.
Sentiment among single-family homebuilders was unchanged in April, with the National Association of Home Builders noting that "buyers are hesitating until they can better gauge where interest rates are headed."
The average rate on the popular 30-year fixed-rate mortgage has risen back above 7%, data from mortgage finance agency Freddie Mac showed, as strong reports on the labor market and inflation suggested the Federal Reserve could delay an anticipated interest rate cut this year.
A few economists doubt the U.S. central bank will lower borrowing costs in 2024.
BROAD INCREASE
New home sales rose in all four regions last month, with the Northeast posting a 27.8% surge.
Sales in the Midwest gained 5.3% and increased 7.7% in the densely populated South.
They vaulted 8.6% in the West.
Despite the weakness in permits last month, economists believed residential investment picked up in the first quarter after slowing considerably in the October-December period.
The government is scheduled to publish its snapshot of gross domestic product for the first quarter on Thursday.
Growth estimates for the period are as high as a 3.1% annualized rate.
The economy grew at a 3.4% pace in the fourth quarter.
Stocks on Wall Street were trading higher.
The dollar fell against a basket of currencies.
U.S. Treasury prices rose.
The median new house price increased 6% to $430,700 from February.
That was the highest level since last August.
Prices, however, slipped 1.9% from a year ago.
Most of the new homes sold last month were in the $300,000-$399,999 price range, followed by the $500,000-$749,000 price bracket.
Builders are constructing smaller and cheaper houses, but fewer of them are cutting prices.
The NAHB survey last week showed the share of builders cutting prices fell to 22% in April from 24% in March and 36% in December.
Fewer builders were also offering incentives to boost sales.
Overall house prices continue to rise because of the supply squeeze in the home resale market.
Data from mortgage finance agency Fannie Mae last week showed house prices increased 7.4% on a year-on-year basis in the first quarter compared to a 6.6% rise in the fourth quarter.
Fannie Mae upgraded its estimate for home price growth this year to 4.8% from 3.2% previously.
There were 477,000 new homes on the market at the end of March, up from 465,000 units in February.
At March's sales pace it would take 8.3 months to clear the supply of houses on the market, down from 8.8 months in February.
Houses under construction accounted for 59.1% of inventory.
Homes yet to be built made up 22.2% of supply, while completed houses accounted for 18.7%.
Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Paul Simao
https://www.reuters.com/markets/us/us-n ... 024-04-23/
Re: THE DAILY NEWS
RIGZONE
"Oil Swings as US Stockpiles Fall Sharply"
by Bloomberg | Julia Fanzeres and Alex Longley
Wednesday, April 24, 2024
Oil fluctuated as traders weighed a larger-than-anticipated drop in US crude stockpiles against broader risk-off sentiment.
West Texas Intermediate settled below $83 a barrel after swinging in a narrow range on Wednesday.
US oil inventories fell by 6.37 million barrels last week, according to an Energy Information Administration report.
The stockpile draw was larger than most analysts anticipated and was the biggest decline since January.
Meanwhile, a flight from risky assets gripped broader markets.
The S&P 500 Index swung in directionless trading while a stronger US dollar made commodities priced into the currency more expensive.
Oil prices have pulled back from recent highs above $90 a barrel as geopolitical risks in the Middle East began to ease.
Traders also are weighing the outlook for US monetary policy, with data on the Federal Reserve’s preferred inflation gauge due later this week.
The US, meanwhile, approved tougher measures against Iran in response to its attack on Israel earlier this month.
While some Asian refiners are bracing for added scrutiny, the move isn’t expected to have a significant market impact.
Timespreads are signaling tighter conditions, with the gap between Brent’s two nearest contracts widening to $1.05 a barrel in backwardation, a bullish pattern in which the nearer contract trades at a premium to the next in sequence.
That compares with 69 cents a week ago.
Prices:
WTI fell 0.6% to settle at $82.81 a barrel in New York.
Brent settlement was 0.5% lower at $88.02 a barrel.
https://www.rigzone.com/news/wire/oil_s ... 8-article/
"Oil Swings as US Stockpiles Fall Sharply"
by Bloomberg | Julia Fanzeres and Alex Longley
Wednesday, April 24, 2024
Oil fluctuated as traders weighed a larger-than-anticipated drop in US crude stockpiles against broader risk-off sentiment.
West Texas Intermediate settled below $83 a barrel after swinging in a narrow range on Wednesday.
US oil inventories fell by 6.37 million barrels last week, according to an Energy Information Administration report.
The stockpile draw was larger than most analysts anticipated and was the biggest decline since January.
Meanwhile, a flight from risky assets gripped broader markets.
The S&P 500 Index swung in directionless trading while a stronger US dollar made commodities priced into the currency more expensive.
Oil prices have pulled back from recent highs above $90 a barrel as geopolitical risks in the Middle East began to ease.
Traders also are weighing the outlook for US monetary policy, with data on the Federal Reserve’s preferred inflation gauge due later this week.
The US, meanwhile, approved tougher measures against Iran in response to its attack on Israel earlier this month.
While some Asian refiners are bracing for added scrutiny, the move isn’t expected to have a significant market impact.
Timespreads are signaling tighter conditions, with the gap between Brent’s two nearest contracts widening to $1.05 a barrel in backwardation, a bullish pattern in which the nearer contract trades at a premium to the next in sequence.
That compares with 69 cents a week ago.
Prices:
WTI fell 0.6% to settle at $82.81 a barrel in New York.
Brent settlement was 0.5% lower at $88.02 a barrel.
https://www.rigzone.com/news/wire/oil_s ... 8-article/
Re: THE DAILY NEWS
CNBC
"Treasury yields rise as traders await key U.S. economic data"
Brian Evans @BRIANSYNDICATES Sophie Kiderlin @IN/SOPHIE-KIDERLIN-B327B914A/ @SKIDERLIN
PUBLISHED WED, APR 24 2024
U.S. Treasury yields rose on Wednesday as investors awaited the release of fresh economic data to assess the prospects of Federal Reserve rate cuts later this year.
The 10-year Treasury yield climbed 4.6 basis points to 4.644%.
The 2-year Treasury yield edged 2.4 basis points higher to 4.929%.
Yields and prices move in opposite directions.
One basis point equals 0.01%.
Investors were focused on this week’s economic data releases and their impact on Federal Reserve monetary policy decisions.
On Tuesday, the S&P Global Flash manufacturing PMI for the U.S. came in at a four-month low of 49.9 for April.
Readings below 50 indicate that the sector is contracting.
The data therefore suggested to investors that the economy may be easing slightly.
The gross domestic product reading for the first quarter is due on Thursday, followed by the personal consumption expenditures price index on Friday.
Economists surveyed by Dow Jones expect the economy grew at a 2.4% annualized pace in the first quarter, while consensus Wall Street estimates forecast the PCE inflation rate was 2.6% in March.
The data comes ahead of the Fed’s next meeting on April 30 to May 1.
The central bank is widely expected to keep rates unchanged, but investors will be watching closely for hints about the path ahead for monetary policy.
Fed officials have in recent weeks appeared cautious about a timeline for rate cuts.
Expectations for when interest rates will be cut by the Fed have moved backward in recent weeks and questions have emerged about whether there could be fewer cuts than anticipated this year.
https://www.cnbc.com/2024/04/24/us-trea ... tlook.html
"Treasury yields rise as traders await key U.S. economic data"
Brian Evans @BRIANSYNDICATES Sophie Kiderlin @IN/SOPHIE-KIDERLIN-B327B914A/ @SKIDERLIN
PUBLISHED WED, APR 24 2024
U.S. Treasury yields rose on Wednesday as investors awaited the release of fresh economic data to assess the prospects of Federal Reserve rate cuts later this year.
The 10-year Treasury yield climbed 4.6 basis points to 4.644%.
The 2-year Treasury yield edged 2.4 basis points higher to 4.929%.
Yields and prices move in opposite directions.
One basis point equals 0.01%.
Investors were focused on this week’s economic data releases and their impact on Federal Reserve monetary policy decisions.
On Tuesday, the S&P Global Flash manufacturing PMI for the U.S. came in at a four-month low of 49.9 for April.
Readings below 50 indicate that the sector is contracting.
The data therefore suggested to investors that the economy may be easing slightly.
The gross domestic product reading for the first quarter is due on Thursday, followed by the personal consumption expenditures price index on Friday.
Economists surveyed by Dow Jones expect the economy grew at a 2.4% annualized pace in the first quarter, while consensus Wall Street estimates forecast the PCE inflation rate was 2.6% in March.
The data comes ahead of the Fed’s next meeting on April 30 to May 1.
The central bank is widely expected to keep rates unchanged, but investors will be watching closely for hints about the path ahead for monetary policy.
Fed officials have in recent weeks appeared cautious about a timeline for rate cuts.
Expectations for when interest rates will be cut by the Fed have moved backward in recent weeks and questions have emerged about whether there could be fewer cuts than anticipated this year.
https://www.cnbc.com/2024/04/24/us-trea ... tlook.html
Re: THE DAILY NEWS
REUTERS
"S&P 500 ends higher as markets weigh rising yields, upbeat corporate results"
By Chibuike Oguh
April 24, 2024
Summary
* Meta shares sink after Q1 results
* Boeing's Q1 revenue falls
* Tesla shares jump on promise of new models
NEW YORK, April 24 (Reuters) - Benchmark S&P 500 closed higher in choppy trading on Wednesday, as investors weighed an uptick in Treasury yields amid positive corporate results particularly from technology giants.
An auction of a record $70 billion worth of five-year U.S. Treasury notes on Wednesday helped to push bond yields higher and had weighed on equities.
The benchmark 10-year Treasury note rose five basis points to 4.6459%.
The Dow finished lower while the Nasdaq ended higher.
Seven out of 11 S&P 500 sectors made gains led by stocks in consumer staples, utilities, consumer discretionary and real estate.
Investors were also focused on quarterly earnings from companies, especially from megacap growth stocks.
Shares of Meta Platforms fell 11% in extended hours trading after the tech giant reported that its capital expenditure could reach up to $40 billion in 2024, even as its first quarter revenue beat estimates.
Microsoft and Alphabet are scheduled to report their results later this week.
Tesla jumped 12% after the electric vehicle maker's plans to boost production and roll out more affordable models overshadowed its weak quarterly results.
"My biggest concern is the bond market, particularly the long end of the U.S. yield curve," said Bill Strazzullo, chief market strategist at Bell Curve Trading in Boston.
The S&P 500 gained 1.08 points, or 0.02%, to 5,071.63 and the Nasdaq Composite gained 16.11 points, or 0.10%, to 15,712.75.
The Dow Jones Industrial Average fell 42.77 points, or 0.11%, to 38,460.92.
Markets are eyeing first quarter gross domestic product data on Thursday and personal consumption expenditures (PCE) for March on Friday.
Hotter-than-expected consumer price inflation report for March had pushed back expectations of when the Fed will begin cutting interest rates.
Shares of Boeing fell 2.8% after the planemaker reported its first quarterly revenue drop in seven quarters, even though the result beat analyst expectations.
Solar inverter maker Enphase Energy dropped 5.5% after projecting second-quarter revenue below analysts' estimates.
Texas Instruments climbed 5.6% after the chipmaker forecast second-quarter revenue above analysts' estimates.
The Philadelphia Semiconductor Index closed higher as most chip stocks rallied.
Drugmaker Biogen gained 4.5% after it beat first-quarter profit expectations, while Boston Scientific rose 5.7% after the medical device maker raised its annual profit forecast.
Hasbro climbed nearly 12% after the toymaker reported a smaller-than-expected drop in first-quarter sales and handily beat profit estimates.
Declining issues outnumbered advancers by a 1.33-to-1 ratio on the NYSE.
There were 80 new highs and 50 new lows on the NYSE.
On the Nasdaq, 1,903 stocks rose and 2,316 fell as declining issues outnumbered advancers by a 1.22-to-1 ratio.
The S&P 500 posted 11 new 52-week highs and four new lows, while the Nasdaq recorded 55 new highs and 120 new lows.
Volume on U.S. exchanges was 10.2 billion shares, compared with the 11.07 billion average for the last 20 days.
Reporting by Chibuike Oguh in New York; additional reporting by Shristi Achar A and Shashwat Chauhan in Bengaluru; Editing by Marguerita Choy
https://www.reuters.com/markets/us/sp-n ... 024-04-24/
"S&P 500 ends higher as markets weigh rising yields, upbeat corporate results"
By Chibuike Oguh
April 24, 2024
Summary
* Meta shares sink after Q1 results
* Boeing's Q1 revenue falls
* Tesla shares jump on promise of new models
NEW YORK, April 24 (Reuters) - Benchmark S&P 500 closed higher in choppy trading on Wednesday, as investors weighed an uptick in Treasury yields amid positive corporate results particularly from technology giants.
An auction of a record $70 billion worth of five-year U.S. Treasury notes on Wednesday helped to push bond yields higher and had weighed on equities.
The benchmark 10-year Treasury note rose five basis points to 4.6459%.
The Dow finished lower while the Nasdaq ended higher.
Seven out of 11 S&P 500 sectors made gains led by stocks in consumer staples, utilities, consumer discretionary and real estate.
Investors were also focused on quarterly earnings from companies, especially from megacap growth stocks.
Shares of Meta Platforms fell 11% in extended hours trading after the tech giant reported that its capital expenditure could reach up to $40 billion in 2024, even as its first quarter revenue beat estimates.
Microsoft and Alphabet are scheduled to report their results later this week.
Tesla jumped 12% after the electric vehicle maker's plans to boost production and roll out more affordable models overshadowed its weak quarterly results.
"My biggest concern is the bond market, particularly the long end of the U.S. yield curve," said Bill Strazzullo, chief market strategist at Bell Curve Trading in Boston.
The S&P 500 gained 1.08 points, or 0.02%, to 5,071.63 and the Nasdaq Composite gained 16.11 points, or 0.10%, to 15,712.75.
The Dow Jones Industrial Average fell 42.77 points, or 0.11%, to 38,460.92.
Markets are eyeing first quarter gross domestic product data on Thursday and personal consumption expenditures (PCE) for March on Friday.
Hotter-than-expected consumer price inflation report for March had pushed back expectations of when the Fed will begin cutting interest rates.
Shares of Boeing fell 2.8% after the planemaker reported its first quarterly revenue drop in seven quarters, even though the result beat analyst expectations.
Solar inverter maker Enphase Energy dropped 5.5% after projecting second-quarter revenue below analysts' estimates.
Texas Instruments climbed 5.6% after the chipmaker forecast second-quarter revenue above analysts' estimates.
The Philadelphia Semiconductor Index closed higher as most chip stocks rallied.
Drugmaker Biogen gained 4.5% after it beat first-quarter profit expectations, while Boston Scientific rose 5.7% after the medical device maker raised its annual profit forecast.
Hasbro climbed nearly 12% after the toymaker reported a smaller-than-expected drop in first-quarter sales and handily beat profit estimates.
Declining issues outnumbered advancers by a 1.33-to-1 ratio on the NYSE.
There were 80 new highs and 50 new lows on the NYSE.
On the Nasdaq, 1,903 stocks rose and 2,316 fell as declining issues outnumbered advancers by a 1.22-to-1 ratio.
The S&P 500 posted 11 new 52-week highs and four new lows, while the Nasdaq recorded 55 new highs and 120 new lows.
Volume on U.S. exchanges was 10.2 billion shares, compared with the 11.07 billion average for the last 20 days.
Reporting by Chibuike Oguh in New York; additional reporting by Shristi Achar A and Shashwat Chauhan in Bengaluru; Editing by Marguerita Choy
https://www.reuters.com/markets/us/sp-n ... 024-04-24/
Re: THE DAILY NEWS
REUTERS
"Tepid US core capital goods orders point to weak business equipment spending"
By Lucia Mutikani
April 24, 2024
Summary
* Core capital goods orders increase 0.2% in March
* Nondefense capital goods jump 5.4%; shipments drop 1.5%
* Durable goods orders rise 2.6%; shipments unchanged
WASHINGTON, April 24 (Reuters) - New orders for key U.S.-manufactured capital goods increased moderately in March and data for the prior month was revised lower, suggesting that business spending on equipment likely remained weak in the first quarter.
The report from the Commerce Department on Wednesday was published ahead of the release on Thursday of the government's advance estimate of gross domestic product for the January-March quarter.
The economy is expected to have delivered another quarter of strong performance, thanks to a resilient labor market that is driving consumer spending.
"From a narrow GDP accounting perspective, there should be no material impact on estimates for tomorrow's first-quarter GDP growth," said Conrad DeQuadros, senior economic advisor at Brean Capital.
"The positive takeaway from this is that the report suggests that weakness in manufacturing does not appear to be intensifying, but neither are there signs of recovery."
Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, rose 0.2% last month, the Commerce Department's Census Bureau said.
Data for February was revised lower to show these so-called core capital goods orders advancing 0.4% instead of 0.7% as previously reported.
March's increase was in line with economists' expectations.
Core capital goods orders gained 0.6% year-on-year in March.
Business spending on equipment has struggled in the aftermath of 525 basis points worth of interest rate hikes from the Federal Reserve since March 2022 to tame inflation.
Though the U.S. central bank is expected to start lowering rates this year, the timing of the first cut is uncertain as inflation remains elevated amid the economy's resilience.
The Fed has kept its policy rate in the 5.25%-5.50% range since July.
Stocks on Wall Street were trading higher.
The dollar rose against a basket of currencies.
U.S. Treasury prices fell.
WEAK SHIPMENTS
Core capital goods shipments rebounded 0.2% after falling 0.6% in February.
These shipments likely were unchanged when adjusted for inflation.
Non-defense capital goods orders surged 5.4% after rising 2.7% in February.
But shipments of these goods slumped 1.5% after increasing by a downwardly revised 2.4% in February.
Non-defense capital goods shipments, which go into the calculation of the business spending on equipment component in the gross domestic product report, were previously reported to have risen 2.6% in February.
"While underlying capital goods shipments rose last quarter, they were probably little changed in real terms and the plunge in non-defense aircraft shipments suggests that overall business equipment investment declined," said Stephen Brown, deputy chief North America economist at Capital Economics.
Economists polled by Reuters estimated that GDP increased at a 2.4% annualized rate in the first quarter.
The economy grew at a 3.4% pace in the October-December quarter.
Business spending on equipment likely contracted for a third straight quarter.
But manufacturing, which accounts for 10.4% of the economy, is stabilizing.
Orders for durable goods, items ranging from toasters to aircraft meant to last three years or more, rose 2.6% in March after a downwardly revised 0.7% advance in February.
An Institute for Supply Management survey this month showed manufacturing grew for the first time in 1-1/2 years in March.
Transportation dominated the rise in orders last month, with bookings shooting up 7.7% after rising 1.8% in February.
They were lifted by a 30.6% jump in civilian aircraft orders after increasing 15.6% in the prior month.
Boeing reported on its website that it had received 113 orders for commercial aircraft, a surge from just 15 in February.
Orders for motor vehicles and parts rose 2.1%.
Orders for computers and electronic products increased 0.8% last month, while those for electrical equipment, appliances and components gained 0.1%.
Orders for fabricated metals rose 0.2%.
But orders for primary metals fell 0.5%.
Shipments of durable goods were unchanged as were inventories.
Unfilled orders rebounded 0.4%.
"The big picture here is that investment remains weak, and this is unlikely to change dramatically while credit conditions remain restrictive, especially for smaller firms," said Oliver Allen, senior U.S. economist at Pantheon Macroeconomics.
Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Andrea Ricci
https://www.reuters.com/markets/us/us-c ... 024-04-24/
"Tepid US core capital goods orders point to weak business equipment spending"
By Lucia Mutikani
April 24, 2024
Summary
* Core capital goods orders increase 0.2% in March
* Nondefense capital goods jump 5.4%; shipments drop 1.5%
* Durable goods orders rise 2.6%; shipments unchanged
WASHINGTON, April 24 (Reuters) - New orders for key U.S.-manufactured capital goods increased moderately in March and data for the prior month was revised lower, suggesting that business spending on equipment likely remained weak in the first quarter.
The report from the Commerce Department on Wednesday was published ahead of the release on Thursday of the government's advance estimate of gross domestic product for the January-March quarter.
The economy is expected to have delivered another quarter of strong performance, thanks to a resilient labor market that is driving consumer spending.
"From a narrow GDP accounting perspective, there should be no material impact on estimates for tomorrow's first-quarter GDP growth," said Conrad DeQuadros, senior economic advisor at Brean Capital.
"The positive takeaway from this is that the report suggests that weakness in manufacturing does not appear to be intensifying, but neither are there signs of recovery."
Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, rose 0.2% last month, the Commerce Department's Census Bureau said.
Data for February was revised lower to show these so-called core capital goods orders advancing 0.4% instead of 0.7% as previously reported.
March's increase was in line with economists' expectations.
Core capital goods orders gained 0.6% year-on-year in March.
Business spending on equipment has struggled in the aftermath of 525 basis points worth of interest rate hikes from the Federal Reserve since March 2022 to tame inflation.
Though the U.S. central bank is expected to start lowering rates this year, the timing of the first cut is uncertain as inflation remains elevated amid the economy's resilience.
The Fed has kept its policy rate in the 5.25%-5.50% range since July.
Stocks on Wall Street were trading higher.
The dollar rose against a basket of currencies.
U.S. Treasury prices fell.
WEAK SHIPMENTS
Core capital goods shipments rebounded 0.2% after falling 0.6% in February.
These shipments likely were unchanged when adjusted for inflation.
Non-defense capital goods orders surged 5.4% after rising 2.7% in February.
But shipments of these goods slumped 1.5% after increasing by a downwardly revised 2.4% in February.
Non-defense capital goods shipments, which go into the calculation of the business spending on equipment component in the gross domestic product report, were previously reported to have risen 2.6% in February.
"While underlying capital goods shipments rose last quarter, they were probably little changed in real terms and the plunge in non-defense aircraft shipments suggests that overall business equipment investment declined," said Stephen Brown, deputy chief North America economist at Capital Economics.
Economists polled by Reuters estimated that GDP increased at a 2.4% annualized rate in the first quarter.
The economy grew at a 3.4% pace in the October-December quarter.
Business spending on equipment likely contracted for a third straight quarter.
But manufacturing, which accounts for 10.4% of the economy, is stabilizing.
Orders for durable goods, items ranging from toasters to aircraft meant to last three years or more, rose 2.6% in March after a downwardly revised 0.7% advance in February.
An Institute for Supply Management survey this month showed manufacturing grew for the first time in 1-1/2 years in March.
Transportation dominated the rise in orders last month, with bookings shooting up 7.7% after rising 1.8% in February.
They were lifted by a 30.6% jump in civilian aircraft orders after increasing 15.6% in the prior month.
Boeing reported on its website that it had received 113 orders for commercial aircraft, a surge from just 15 in February.
Orders for motor vehicles and parts rose 2.1%.
Orders for computers and electronic products increased 0.8% last month, while those for electrical equipment, appliances and components gained 0.1%.
Orders for fabricated metals rose 0.2%.
But orders for primary metals fell 0.5%.
Shipments of durable goods were unchanged as were inventories.
Unfilled orders rebounded 0.4%.
"The big picture here is that investment remains weak, and this is unlikely to change dramatically while credit conditions remain restrictive, especially for smaller firms," said Oliver Allen, senior U.S. economist at Pantheon Macroeconomics.
Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Andrea Ricci
https://www.reuters.com/markets/us/us-c ... 024-04-24/
Re: THE DAILY NEWS
REUTERS
"Solar firm SunPower to cut jobs, wind down most of residential direct sales"
By Reuters
April 24, 2024
April 24 (Reuters) - SunPower plans to reduce its workforce by about 1,000 people in the coming days and weeks and move away from most of its direct sales channel as part of a restructuring plan to lower costs, the solar firm said on Wednesday.
The development comes a day after the company disclosed it identified misstatements in its results for fiscal 2022.
SunPower said it will wind down its SunPower Residential Installation locations and close SunPower Direct sales, adding that installations would be handled by its Blue Raven Solar and independent dealers.
SunPower had acquired Blue Raven for $165 million in 2021.
The company had 586,250 residential customers as of Dec. 31, 2023.
JP Morgan analysts said in a note that the realignment would largely eliminate SunPower's direct sales channel and move the company towards third-party sales.
Companies providing solar power and storage solutions have seen rising inventory levels and metering reforms in California weigh on demand.
The metering reform lowered the tariff residential customers receive from the grid, dampening demand for solar setups.
SunPower, which had 3,800 full-time employees globally prior to the job cut announcement, expects charges of about $28 million related to severance benefits, early contract terminations and certain write-offs.
The steps are being taken to simplify the business structure, transitioning away from areas where the company has been unable to sustain profitable operations, and improving financial controls, SunPower's Principal Executive Officer Tom Werner said in a letter to employees.
Werner, who served as CEO for nearly two decades, was brought back from retirement earlier this year as executive chairman while CEO Peter Faricy left.
Its restructuring plans are likely to be completed by the second quarter.
Shares were down 1.2% in afternoon trade.
Reporting by Mrinalika Roy in Bengaluru, additional reporting by Sourasis Bose and Roshia Sabu; Editing by Shounak Dasgupta and Shailesh Kuber
https://www.reuters.com/business/energy ... 024-04-24/
"Solar firm SunPower to cut jobs, wind down most of residential direct sales"
By Reuters
April 24, 2024
April 24 (Reuters) - SunPower plans to reduce its workforce by about 1,000 people in the coming days and weeks and move away from most of its direct sales channel as part of a restructuring plan to lower costs, the solar firm said on Wednesday.
The development comes a day after the company disclosed it identified misstatements in its results for fiscal 2022.
SunPower said it will wind down its SunPower Residential Installation locations and close SunPower Direct sales, adding that installations would be handled by its Blue Raven Solar and independent dealers.
SunPower had acquired Blue Raven for $165 million in 2021.
The company had 586,250 residential customers as of Dec. 31, 2023.
JP Morgan analysts said in a note that the realignment would largely eliminate SunPower's direct sales channel and move the company towards third-party sales.
Companies providing solar power and storage solutions have seen rising inventory levels and metering reforms in California weigh on demand.
The metering reform lowered the tariff residential customers receive from the grid, dampening demand for solar setups.
SunPower, which had 3,800 full-time employees globally prior to the job cut announcement, expects charges of about $28 million related to severance benefits, early contract terminations and certain write-offs.
The steps are being taken to simplify the business structure, transitioning away from areas where the company has been unable to sustain profitable operations, and improving financial controls, SunPower's Principal Executive Officer Tom Werner said in a letter to employees.
Werner, who served as CEO for nearly two decades, was brought back from retirement earlier this year as executive chairman while CEO Peter Faricy left.
Its restructuring plans are likely to be completed by the second quarter.
Shares were down 1.2% in afternoon trade.
Reporting by Mrinalika Roy in Bengaluru, additional reporting by Sourasis Bose and Roshia Sabu; Editing by Shounak Dasgupta and Shailesh Kuber
https://www.reuters.com/business/energy ... 024-04-24/
Re: THE DAILY NEWS
REUTERS
"US closes $362 million loan to CelLink for vehicle wiring plant"
By Timothy Gardner
April 24, 2024
WASHINGTON, April 24 (Reuters) - The United States has closed a $362 million loan to CelLink Corp to help finance the construction of a plant in Texas to make components for electric vehicle assembly, the Department of Energy's loan programs office said on Wednesday.
WHY IT'S IMPORTANT
The financing from the government's Advanced Technology Vehicles Manufacturing loan program is for the development of lighter, more efficient flexible circuit wiring harnesses for automotive and other industries.
CelLink has developed a new method of connecting battery cells and packs, and transferring power and data across vehicle sensors, modules and electronic control units, according to the company.
Most wire harness production for the U.S. market is currently in low-cost labor countries due to the complex processes associated with traditional wire harness assembly, the Energy Department has said.
BY THE NUMBERS
Once operational, the plant is expected to produce enough wiring harnesses to support the manufacture of about 2.7 million EVs per year and more than 1,200 jobs.
KEY QUOTES
“EV sales have quadrupled since President (Joe) Biden took office, reaching historic levels just last year and projected to hit new records for 2024, underscoring why it's essential for the United States to harness manufacturing of all the key EV components," said U.S. Energy Secretary Jennifer Granholm.
WHAT'S NEXT
The Texas facility will eventually hold up to 25 manufacturing lines that will be brought online in stages over the next several years depending on demand.
The Biden administration last month slashed its target for electric vehicle adoption projecting that between 35% and 56% of all new vehicles will be electric between 2030 and 2032.
Auto workers in the political battleground state of Michigan had slammed the administration's tougher targets.
Reporting by Timothy Gardner; Editing by Kirsten Donovan
https://www.reuters.com/business/autos- ... 024-04-24/
"US closes $362 million loan to CelLink for vehicle wiring plant"
By Timothy Gardner
April 24, 2024
WASHINGTON, April 24 (Reuters) - The United States has closed a $362 million loan to CelLink Corp to help finance the construction of a plant in Texas to make components for electric vehicle assembly, the Department of Energy's loan programs office said on Wednesday.
WHY IT'S IMPORTANT
The financing from the government's Advanced Technology Vehicles Manufacturing loan program is for the development of lighter, more efficient flexible circuit wiring harnesses for automotive and other industries.
CelLink has developed a new method of connecting battery cells and packs, and transferring power and data across vehicle sensors, modules and electronic control units, according to the company.
Most wire harness production for the U.S. market is currently in low-cost labor countries due to the complex processes associated with traditional wire harness assembly, the Energy Department has said.
BY THE NUMBERS
Once operational, the plant is expected to produce enough wiring harnesses to support the manufacture of about 2.7 million EVs per year and more than 1,200 jobs.
KEY QUOTES
“EV sales have quadrupled since President (Joe) Biden took office, reaching historic levels just last year and projected to hit new records for 2024, underscoring why it's essential for the United States to harness manufacturing of all the key EV components," said U.S. Energy Secretary Jennifer Granholm.
WHAT'S NEXT
The Texas facility will eventually hold up to 25 manufacturing lines that will be brought online in stages over the next several years depending on demand.
The Biden administration last month slashed its target for electric vehicle adoption projecting that between 35% and 56% of all new vehicles will be electric between 2030 and 2032.
Auto workers in the political battleground state of Michigan had slammed the administration's tougher targets.
Reporting by Timothy Gardner; Editing by Kirsten Donovan
https://www.reuters.com/business/autos- ... 024-04-24/
Re: THE DAILY NEWS
REUTERS
"US plans 12 offshore wind auctions over five years"
By Nichola Groom
April 24, 2024
April 24 (Reuters) - U.S. President Joe Biden's administration unveiled plans on Wednesday to hold up to a dozen auctions of offshore wind development rights through 2028, including four before the end of this year.
The schedule will help companies, states and others plan for projects that require massive amounts of investment and infrastructure, the Interior Department said in a statement.
Interior has held just four offshore wind auctions since Biden took office in 2021.
The last one, in the Gulf of Mexico last August, attracted lackluster industry interest.
The agency will regularly update the schedule under new regulations finalized on Wednesday.
The rules will streamline certain requirements for offshore wind development and cut industry costs by $1.9 billion over the next two decades, Interior said.
"Our offshore wind leasing schedule will provide predictability to help developers and communities plan ahead and will provide the confidence needed to continue building on the tremendous offshore wind supply chain and manufacturing investments that we've already seen," Interior Secretary Deb Haaland said in a statement.
The administration is determined to support the nascent U.S. offshore wind industry at a time when projects have been plagued by rising costs tied to inflation, interest rates and supply chain constraints.
Just this week, New York state stalled three major planned offshore wind farms.
According to Interior's schedule, this year the agency will hold lease sales for areas in the Central Atlantic, Gulf of Maine, Gulf of Mexico and Oregon.
In 2025, it will hold a single sale in the Gulf of Mexico.
In 2026, it will hold an auction in the Central Atlantic.
In 2027, two sales are scheduled - the Gulf of Mexico and New York Bight.
In 2028, Interior aims to hold four auctions - in California, an undetermined U.S. territory, the Gulf of Maine and Hawaii.
The timing of the sales is linked to the administration's five-year schedule to offer acreage to oil and gas companies for offshore development.
A provision in Biden's landmark climate change law, the Inflation Reduction Act, requires that Interior must offer at least 60 million acres (24.3 million hectares) for oil and gas leasing a year before issuing an offshore wind lease.
The U.S. last held an oil and gas auction in December of last year and will not hold another one until 2025 under a scaled back five-year drilling plan finalized last year.
In addition to establishing a leasing schedule, the offshore wind regulations finalized on Wednesday eliminate requirements for meteorological buoys, defer some survey requirements until a project is approved and allow incremental funding of decommissioning accounts over the life of a facility.
Reporting by Nichola Groom; Editing by David Gregorio and Marguerita Choy
https://www.reuters.com/business/energy ... 024-04-24/
"US plans 12 offshore wind auctions over five years"
By Nichola Groom
April 24, 2024
April 24 (Reuters) - U.S. President Joe Biden's administration unveiled plans on Wednesday to hold up to a dozen auctions of offshore wind development rights through 2028, including four before the end of this year.
The schedule will help companies, states and others plan for projects that require massive amounts of investment and infrastructure, the Interior Department said in a statement.
Interior has held just four offshore wind auctions since Biden took office in 2021.
The last one, in the Gulf of Mexico last August, attracted lackluster industry interest.
The agency will regularly update the schedule under new regulations finalized on Wednesday.
The rules will streamline certain requirements for offshore wind development and cut industry costs by $1.9 billion over the next two decades, Interior said.
"Our offshore wind leasing schedule will provide predictability to help developers and communities plan ahead and will provide the confidence needed to continue building on the tremendous offshore wind supply chain and manufacturing investments that we've already seen," Interior Secretary Deb Haaland said in a statement.
The administration is determined to support the nascent U.S. offshore wind industry at a time when projects have been plagued by rising costs tied to inflation, interest rates and supply chain constraints.
Just this week, New York state stalled three major planned offshore wind farms.
According to Interior's schedule, this year the agency will hold lease sales for areas in the Central Atlantic, Gulf of Maine, Gulf of Mexico and Oregon.
In 2025, it will hold a single sale in the Gulf of Mexico.
In 2026, it will hold an auction in the Central Atlantic.
In 2027, two sales are scheduled - the Gulf of Mexico and New York Bight.
In 2028, Interior aims to hold four auctions - in California, an undetermined U.S. territory, the Gulf of Maine and Hawaii.
The timing of the sales is linked to the administration's five-year schedule to offer acreage to oil and gas companies for offshore development.
A provision in Biden's landmark climate change law, the Inflation Reduction Act, requires that Interior must offer at least 60 million acres (24.3 million hectares) for oil and gas leasing a year before issuing an offshore wind lease.
The U.S. last held an oil and gas auction in December of last year and will not hold another one until 2025 under a scaled back five-year drilling plan finalized last year.
In addition to establishing a leasing schedule, the offshore wind regulations finalized on Wednesday eliminate requirements for meteorological buoys, defer some survey requirements until a project is approved and allow incremental funding of decommissioning accounts over the life of a facility.
Reporting by Nichola Groom; Editing by David Gregorio and Marguerita Choy
https://www.reuters.com/business/energy ... 024-04-24/