The Nasdaq Composite is now leading the Dow Jones Industrial Average by 18.3%, its widest margin of outperformance since 1991 as of Tuesday's close while the blue-chip gauge erases its year-to-date gain, according to Dow Jones Market Data.
After falling more than 300 points during Tuesday's session, the Dow closed in the red for the year for the first time since May 4. The stock benchmark also finished below its 50-day moving average - a closely watched technical indicator - for the first time since March 30.
Pro Take: Cost of Car Repairs Highlights Persistence of Elevated Services Inflation
Auto-repair prices are running 20% higher than a year ago, striking U.S. consumers facing low availability of new cars and making it more difficult for the Federal Reserve to put the brakes on inflation.
Fed officials and economists talk about sticky inflation in the large services part of the economy. Prices for auto repairs define the dilemma, and there is no quick fix.
Cutting Deposit Rates Has Become Mission Critical for Chinese Banks
Banks across China are slashing deposit rates, after a year that saw their profits being squeezed by lower lending rates and record-high savings levels.
Around a dozen lenders this week lowered the maximum interest rates they pay on certain types of corporate and individual deposit accounts, according to statements from the banks and Chinese state media. Many more are expected to do the same. The latest cuts averaged 0.3 percentage point, and followed other deposit-rate reductions in recent weeks and months by other Chinese banks ranging from state-owned giants to small rural lenders.
Tourism Recovery Helps Japan Grow in First Quarter
TOKYO-Japan's economy showed a bigger-than-expected upswing in the first quarter, helped by a recovery in tourism that offset sluggishness in some leading economies.
Japan has just begun to benefit from postpandemic pent-up demand of the kind the U.S. experienced more than a year ago. Tokyo waited until last October to remove border controls for overseas tourists and lifted restrictions on big events earlier this year.
Growth in China's Home Prices Slowed in April
China's new home prices in major cities grew at a slower pace in April, despite the government's call to stabilize the real-estate market, as the country's economic recovery tapered off without additional policy support.
Average new home prices in 70 major Chinese cities rose 0.32% in April from a month earlier, slowing from the 0.44% month-over-month increase recorded in March, according to calculations by The Wall Street Journal based on official data released Wednesday.
Jeffrey Epstein Moved $270,000 for Noam Chomsky and Paid $150,000 to Leon Botstein
Jeffrey Epstein paid $150,000 to Leon Botstein and transferred $270,000 between accounts for Noam Chomsky, the two academics have confirmed, giving another glimpse into how the late disgraced financier provided favors for those who associated with him.
Botstein and Chomsky met multiple times with Epstein after he was a registered sex offender, The Wall Street Journal recently reported. Chomsky, a political activist and professor, told the Journal that they met occasionally to discuss political and academic topics. Botstein, the longtime leader of Bard College in New York, said he met with Epstein in an attempt to raise funds for the school.
Abortion-Pill Battle Returns to the Courtroom
A New Orleans-based federal appeals court will hear arguments Wednesday in a closely watched case that could help determine access to a widely used abortion pill nationwide.
In recent weeks, a legal challenge to the pill's approval by the U.S. Food and Drug Administration moved rapidly from a courthouse in Amarillo, Texas, to the U.S. Supreme Court. The high court in an order last month allowed the pill mifepristone, which is used in more than half of abortions in the U.S., to remain on the market indefinitely while litigation proceeds.
Young Americans Are Dying at Alarming Rates, Reversing Years of Progress
For decades, advances in healthcare and safety steadily drove down death rates among American children. In an alarming reversal, rates have now risen to the highest level in nearly 15 years, particularly driven by homicides, drug overdoses, car accidents and suicides.
The uptick among younger Americans accelerated in 2020. Though Covid-19 itself wasn't a major cause of death for young people, researchers say social disruption caused by the pandemic exacerbated public-health problems, including worsening anxiety and depression. Greater access to firearms, dangerous driving and more lethal narcotics also helped push up death rates.
Write to paul.larkins@dowjones.com TODAY IN CANADA
Earnings:
Americs Gold and Silver 2Q
Chesswood 2Q
Marathon Gold 1Q
Tidewater Midstream 2Q
Economic Calendar (ET):
0830 Mar International transactions in securities
Stocks to Watch:
Epsilon Announces a Second Transaction in the Permian Basin; Epsilon Announces Investment in Ector County, Texas; Acquired Assets Are a 25% Working Interest in 12,373 Gross Acres
High Liner Foods 1Q EPS 40c; 1Q Adj EPS 48c
Lumina Gold Announces $300M Metals Streaming Agreement With Wheaton Precious Metals
Tamarack Valley Declares Monthly Cash Dividend of C$0.0125
TELUS Acquires Additional Shrs of TELUS Intl Through Agreement With Baring Private Equity Asia
Expected Major Events for Wednesday
04:30/JPN: Mar Revised Industrial Production
05:30/FRA: 1Q ILO Unemployment and Labour Market-related indicators
08:00/ITA: Mar Foreign Trade EU
11:00/US: 05/12 MBA Weekly Mortgage Applications Survey
12:30/CAN: Mar International transactions in securities
12:30/US: Apr New Residential Construction - Housing Starts and Building Permits
14:30/US: 05/12 EIA Weekly Petroleum Status Report
23:50/JPN: Apr Provisional Trade Statistics for the Month
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Wednesday
Aceragen Inc (ACGN) is expected to report for 1Q.
Amerityre Corp (AMTY) is expected to report for 2Q.
BeyondSpring Inc (BYSI) is expected to report $-0.67 for 1Q.
Boot Barn Holdings Inc (BOOT) is expected to report $1.42 for 4Q.
Bowlero Corp (BOWL) is expected to report for 3Q.
Cisco Systems (CSCO) is expected to report $0.78 for 3Q.
Copart Inc (CPRT) is expected to report $0.62 for 3Q.
Dynatrace Inc (DT) is expected to report for 4Q.
Hawkins Inc (HWKN) is expected to report $0.49 for 4Q.
IBEX Limited (IBEX) is expected to report for 3Q.
Ideanomics Inc (IDEX) is expected to report for 1Q.
Jack In The Box (JACK) is expected to report $1.23 for 2Q.
JanOne Inc (JAN) is expected to report for 1Q.
Lightning eMotors Inc (ZEV) is expected to report for 1Q.
Oncorus Inc (ONCR) is expected to report for 1Q.
PAVmed Inc (PAVM) is expected to report $-0.21 for 1Q.
Progressive Corp (PGR) is expected to report.
Synopsys Inc (SNPS) is expected to report $1.66 for 2Q.
TJX Companies Inc (TJX) is expected to report $0.71 for 1Q.
Take-Two Interactive Software Inc (TTWO) is expected to report $-1.22 for 4Q.
Target Corp (TGT) is expected to report $1.78 for 1Q.
Triumph Group Inc (TGI) is expected to report $0.18 for 4Q.
Tupperware Brands Corp (TUP) is expected to report $0.92 for 1Q.
Unico American (UNAM) is expected to report for 4Q.
ViaSat Inc (VSAT) is expected to report $11.98 for 4Q.
Virgin Orbit Holdings Inc (VORBQ) is expected to report for 1Q.
Williams Industrial Services Group Inc (WLMS) is expected to report $-0.03 for 1Q.
dLocal Ltd (DLO) is expected to report for 1Q.
Powered by Onclusive and Dow Jones.
ANALYST RATINGS ACTIONS
Amdocs Raised to Overweight From Equal-Weight by Barclays
Commerce Bancshares Cut to Underweight From Equal-Weight by Morgan Stanley
CTI BioPharma Cut to Market Perform From Outperform by SVB Leerink
Cullen/Frost Bankers Cut to Equal-Weight From Overweight by Morgan Stanley
Ellington Financial Raised to Outperform From Market Perform by Keefe, Bruyette & Woods
Expedia Group Raised to Buy From Hold by Gordon Haskett
Gilead Sciences Raised to Outperform From Market Perform by BMO Capital
NeoGenomics Cut to Market Perform From Outperform by Raymond James
NEXTracker Raised to Outperform From Neutral by Exane BNP Paribas
Palomar Holdings Raised to Outperform From Market Perform by Keefe, Bruyette & Woods
Prosperity Bancshares Cut to Underweight From Equal-Weight by Morgan Stanley
Veris Residential Raised to Buy From Hold by Deutsche Bank
Warner Bros. Discovery Raised to Outperform From Market Perform by Barrington Research
Williams Cos Raised to Buy From Neutral by Citigroup
Xenetic Biosciences Cut to Neutral From Buy by HC Wainwright & Co.
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
05-17-23 0618ET
