Wall Street dips after worldwide slide; gold nears record

NEW YORK (AP) — Wall Street is slipping on Friday after tensions ramped higher between the world’s two largest economies, though the market pared its losses as the morning progressed.

The S&P 500 was 0.4% lower in midday trading, which would wipe out the last of its gains for the week. The Dow Jones Industrial Average was down 118 points, or 0.4%, at 26,534, as of 11:30 a.m. Eastern time, and the Nasdaq composite was down 0.5%. Each of the indexes had been down more sharply in the morning, with the Nasdaq off by as much as 2.3%.

Stocks also sank across Asian and European markets, and all the uncertainty helped gold top $1,900 per ounce, close to its record high. Treasury yields were holding relatively steady, but they remain close to their lowest levels since April.

The coronavirus pandemic remains the most dominant force in markets, with its potential to destroy lives and economies. But other risks are also bubbling up, headlined by Friday’s worsening relations between the United States and China.

Investors are also concerned about a recent uptick in layoffs as spiking coronavirus counts across the Sun Belt lead more businesses to shut down. Extra benefits for those out-of-work Americans from the federal government are set to expire soon, and worries are rising about whether Congress can reach a deal on more aid for the economy. Nearly half of Americans whose families experienced a layoff during the pandemic believe those jobs are lost forever, according to a poll from The Associated Press-NORC Center for Public Affairs Research.

Despite all those challenges, the S&P 500 remains only about 5% below its record set in February, after roaring back from an earlier, nearly 34% plummet. This week’s stall for the S&P 500 follows three straight weekly gains driven by hopes that the economy was regaining its footing. Underlying it all is massive aid for the economy promised by the Federal Reserve, including record-low interest rates.

“The Fed is the big story behind this market, that and the liquidity it’s provided,” said Teresa Jacobsen, managing director at UBS Private Wealth Management. “It gives a great deal of support for upside in the market. But, there are momentary blips when we pause and give a little back.”

On Friday, the blip came after China’s Foreign Ministry ordered the closure of the U.S. consulate in the western city of Chengdu. It echoes a similar move earlier this week by the United States to close the Chinese consulate in Houston.

Such moves have investors on edge because of how viciously markets swung in prior years when President Donald Trump was pressing his trade war with China, before they agreed to a temporary truce early this year.

“Alongside the eviction of the Houston Chinese Consulate, the risk of the U.S.-China conflict escalating into a ‘Cold War’ is worrying,” said Hayaki Narita of Mizuho Bank.

A speech Thursday by U.S. Secretary of State Mike Pompeo saying that “securing our freedom from the Chinese Communist Party is the mission of our time” adds to the rhetoric certain to incense Beijing, making it still more difficult for either side to back down, he said.

Technology stocks have also been in the spotlight, after a sharp slide for them on Thursday helped drag the S&P 500 to its worst loss in nearly four weeks.

Microsoft, Apple, Amazon and other giants have cruised through much of the pandemic on expectations that they can keep growing despite all the challenges for the economy. But critics say enthusiasm for them was overdone, with prices too high even after accounting for the huge profits that they can produce

Apple slipped 0.6%, Microsoft dropped 0.2%, and tech stocks as a group accounted for roughly half of the S&P 500’s loss. Earlier in the morning, Apple had been down 4%, and tech stocks were responsible for two thirds of the S&P 500′s drop.

Intel sank 15.3% after it delayed the release of its new 7 nanometer chip, and it was the biggest weight on the market Friday morning.

Earlier in the day, stocks in Shanghai sank 3.9%, while the Hang Seng in Hong Kong lost 2.2%. Elsewhere in Asia, South Korea’s Kospi fell 0.7%.

In Europe, France’s CAC 40 fell 1.5%, and Germany’s DAX lost 1.9%. The FTSE 100 in London dropped 1.3%.

The yield on the 10-year Treasury held steady at 0.58%. It tends to move with investors’ expectations for the economy and inflation.

Gold rose 0.5% to $1,900.30 per ounce, crossing above that threshold for the first time in nearly nine years. Benchmark U.S. crude slipped 14 cents to $40.93 per barrel. Brent crude, the international standard, lost 10 cents to $43.21 per barrel.

AP Business Writer Elaine Kurtenbach contributed.

The Associated Press

Wall Street hits the brakes after strong, weekslong rally

Wall Street hit the brakes Tuesday, a day after its remarkable, weekslong rally brought the S&P 500 back to positive for the year and the Nasdaq to a record high.

The S&P 500 was down 0.9% in midday trading, after earlier being down as much as 1.2%. The Dow Jones Industrial Average was down 283 points, or 1%, to 27,281, and the Nasdaq composite was up 0.1%.

Skeptics have been saying for weeks that Wall Street’s huge rally, which reached 44.5% between late March and Monday, may have been overdone. The economy has given glimmers of hope that the recession could end relatively quickly as governments lift their lockdown orders, but the stock market has been soaring much more quickly than the economy and corporate profits are expected to.

“We’re seeing a little bit of a pause and a little bit of a reversal,” said Bill Northey, senior investment director at U.S. Bank Wealth Management. “Some of that is an appropriate reconciliation with the pace for the restart.”

IMPACT ON THE ECONOMY:

– Medicaid rolls swell in New Mexico amid economic turmoil
– A US recession began in February in the face of coronavirus
– Virus tourism impact gives Maui state's top jobless rate

In another sign of increased caution, the yield on the 10-year Treasury yield fell to 0.81% from 0.88% late Monday. It tends to move with investors’ expectations of the economy and inflation, though it’s still well above the 0.64% level where it started last week.

European stock markets were also lower. Germany’s DAX lost 1.4% after the country reported that its exports fell by a quarter in April. France’s CAC 40 slid 1.5%, and the FTSE 100 in London dropped 2.1%.

Asian markets were mixed. Japan’s Nikkei 225 slipped 0.4% after the government reported that wages fell in April as the country widened precautions to fight the coronavirus pandemic, which caused some businesses to close or limit their operations. But the Hang Seng in Hong Kong rose 1.1% and South Korea’s Kospi added 0.2%.

Wall Street has been generally rising since late March, at first on relief following emergency rescues by the Federal Reserve and Congress. More recently, investors have begun piling into companies that would benefit most from a reopening economy that’s growing again.

Banks, airlines, energy companies and others whose profits need the economy to get closer to normal have been leading the way in recent weeks. They got a big boost on Friday when the government said that employers surprisingly added jobs to their payrolls last month, a sign that the economy could pull out of the recession that began in February relatively quickly.

But such companies went into reverse on Tuesday. American Airlines and Alaska Air Group both fell more than 9% for some of the sharpest losses in the S&P 500, a day after they were near the top of the leaderboard.

Stocks in the energy, financial and industrial sectors fell more than the rest of the market, also mirroring their performance from a day before. Technology and communication services companies rose.

Smaller stocks also pulled back following a furious run. The Russell 2000 index of small-cap stocks fell 2.1%, after a 10.2% rally in a little more than a week.

Skeptics of the rally have been saying that many risks still lurk ahead on the long road to a full recovery. Chief among them is the possibility of a second wave of coronavirus infections, which could lead states across the country and nations around the world to tighten up on lockdown measures that could again choke the economy. Plus, one month of improving jobs data does not necessarily mean a trend.

The next big milestone for markets is coming Wednesday, when the Federal Reserve announces its decision on monetary policy following a two-day meeting. The Fed’s promise of immense, unprecedented amounts of aid helped stocks begin their rally, and investors want to see what their reaction will be to the recent upturn in jobs numbers.

___

AP Business Writer Yuri Kageyama contributed.

The Associated Press

US Stock Market Experienced Gains After Impeachment Probe

Wall Street stocks were mixed early Wednesday, with Nike and Boeing gaining, as investors took a wait-and-see approach to a congressional impeachment investigation of President Donald Trump.

The anticipation of the impeachment probe was a factor in the stock market’s retreat on Tuesday.

But the US stock market and investors appeared to be taking the news in stride after House Democratic Leader Nancy Pelosi formally announced the probe.

Wednesday’s flattish early trading “suggests that the market isn’t going to allow itself to get too worked about the inquiry at this stage of matters when the headlines are heavy but the tradable facts of import are light,” analyst Patrick O’Hare wrote at Briefing.com.

About 20 minutes into trading, the Dow Jones Industrial Average stood at 26,841.85, up 0.1 percent.

The broad-based S&P 500 was essentially flat at 2,965.68, while the tech-rich Nasdaq Composite Index had shed 0.2 percent at 7,978.90.


Among individual companies, Dow member Nike surged 5.2 percent after reporting better-than-expected quarterly profits on strong direct sales and higher revenues from China.

Boeing also added to the Dow’s gains, advancing 0.6 percent as it announced a number of reforms to its board and corporate structure to highlight safety concerns after two crashes led to 346 fatalities and the grounding of its popular 737 MAX plane.

Philip Morris International jumped 5.9 percent as it and Altria called off a potential $200 billion merger following a sudden surge in worries about vaping.

Altria, which holds a major stake in e-cigarette company Juul, gained 0.5 percent.

source: usa.inquirer.net

Asian shares mostly lower as investors look to G-20 meeting

TOKYO – Asian shares were mostly lower Wednesday as investors awaited developments on the trade friction between the U.S. and China at the Group of 20 meeting of major economies in Japan later in the week.

Japan’s benchmark Nikkei 225 slipped 0.5% to 21,088.32 in early trading, while Australia’s S&P/ASX 200 inched down nearly 0.1% to 6,652.20. South Korea’s Kospi stood virtually unchanged but a tad lower at 2,121.24.

Hong Kong’s Hang Seng edged up 0.1% to 28,214.56, while the Shanghai Composite inched up less than 0.1% at  2,982.65.

On Wall Street, discouraging economic data and cautionary remarks from the head of the Federal Reserve weighed on the market.

The sell-off marked the third straight loss for the market and the biggest drop this month for the Dow Jones Industrial Average and the S&P 500 index, which hit an all-time high only last week.

In an early afternoon speech, Fed Chairman Jerome Powell noted that the economic outlook has become cloudier since early May amid uncertainty over trade and global growth.

Earlier Tuesday, reports showed a decline in consumer confidence and more weakness in the housing market.

The S&P 500 index fell 27.97 points, or 1%, to 2,917.38.

The Dow dropped 179.32 points, or 0.7%, to 26,548.22. The Nasdaq composite, which is heavily weighted with technology stocks, slid 120.98 points, or 1.5%, to 7,884.72.

The Russell 2000 index of smaller company stocks gave up 9.05 points, or 0.6%, to 1,521.04.

Trade policy remains the biggest source of uncertainty looming over the market. Investors are worried about the trade dispute between the U.S. and China and its potential impact on global economic growth and corporate profits.

Presidents Donald Trump and Xi Jinping will meet this week at the G-20. The world’s two largest economies spent much of the current quarter escalating their trade war and giving global markets jitters over prospects for economic growth.

“To a large extent, any further deterioration in trade relations is expected to guide expectations here so the focus remains up ahead with the G-20,” said Jingyi Pan, market strategist at IG in Singapore.

ENERGY:

Benchmark crude oil rose $1.05 to $58.88 a barrel. It fell 7 cents to settle at $57.83 a barrel Tuesday. Brent crude oil, the international standard, rose 73 cents to $65.01 a barrel.

CURRENCIES:

The dollar rose slightly to 107.46 Japanese yen from 107.03 yen on Tuesday. The euro weakened to $1.1357 from $1.1381. /gsg

source: business.inquirer.net

Shanghai leads gains in Asia as China-US talks resume

SINGAPORE — Mainland Chinese markets led Asian indexes higher on Friday, as the U.S. and China kicked off a fresh round of trade talks in Beijing.

The Shanghai Composite index advanced 2.9 percent to 3,081.11 and Hong Kong’s Hang Seng jumped 1 percent to 29,055.99.

South Korea’s Kospi gained 0.6 percent to 2,140.67.

Japan’s benchmark Nikkei 225 rose 0.8 percent to 21,205.81.

The country’s retail sales fell slightly in February from a month earlier, preliminary data showed.

But industrial production rose 1.4 percent after a 3.4 percent decline in January.

The unemployment rate beat market expectations, falling to 2.3 percent in February from 2.5 percent in the previous month.

Australia’s S&P/ASX 200 edged 0.1 percent higher to 6,180.70.

Shares rose in Taiwan and most of Southeast Asia.


U.S. negotiators, led by Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, attended a working dinner Thursday night with Chinese Vice Premier Liu He, who is expected to travel to Washington next week.

The three of them posed for a photo at a government guesthouse before negotiations resumed on Friday but did not talk to reporters.

On Wall Street, traders shrugged off a discouraging announcement by the Commerce Department. It said U.S. economic growth had slowed sharply in the last three months of 2018 to an annual rate of just 2.2 percent, due to weakness in consumer spending, business investment, government spending and housing.

Most indexes finished higher, as bond yields rose and financial, technology and industrial stocks climbed.

The broad S&P 500 index was 0.4 percent higher at 2,815.44.

The Dow Jones Industrial Average also gained 0.4 percent to 25,717.46.

The Nasdaq composite rose 0.3 percent to 7,669.17 and the Russell 2000 index of smaller company stocks picked up 0.8 percent to 1,535.10.

ENERGY: Benchmark U.S. crude added 31 cents to $59.61 per barrel in electronic trading on the New York Mercantile Exchange. It lost 11 cents to settle at $59.30 per barrel on Thursday. Brent crude, used to price international oils, edged up 30 cents to $67.40 per barrel. The contract shed 14 cents to $67.10 per barrel in London.

CURRENCIES: The dollar strengthened to 110.68 yen from 110.63 yen. The euro rose to $1.1231 from $1.1221. /gsg

source: business.inquirer.net

Trade tensions torpedo oil, US sanctions hammer Russian rouble

SYDNEY — Asian shares were subdued on Thursday after a new round of tit-for-tat tariffs in the US-Sino trade conflict torpedoed oil prices, while the Russian rouble tumbled as the US slapped fresh sanctions on the country.

MSCI's broadest index of Asia-Pacific shares outside Japan barely budged as caution dominated. Japan's Nikkei slipped 0.5 percent, not helped by a shock slump in core machinery orders.

Early Thursday, China's state broadcaster said China must counteract US tariffs and Beijing had the confidence to protect its own interests as well as the means to do so.

China had already announced additional tariffs of 25 percent on $16 billion worth of US imports from fuel to autos. The tariffs will apply to billions of dollars in U.S. gasoline, diesel and other oil products, though not crude.

Analysts at ANZ noted there were also reports President Xi Jinping had asked China's major oil companies to increase domestic output to safeguard the country's energy security.

The oil market took the news hard with selling escalating as major technical levels broke.

US crude was last down 12 cents at $66.82 per barrel, having shed 3.2 percent on Wednesday, while Brent was off 2 cents at $72.26.

On Wall Street, trade-sensitive industrial companies were the biggest drag on the Dow, with declines led by Boeing and Caterpillar Inc.

The Dow fell 0.18 percent, while the S&P 500 lost 0.03 percent and the Nasdaq added 0.06 percent.

More sanctions

In currency markets, the Russian rouble sank after Washington said it would impose fresh sanctions because it had determined that Moscow had used a nerve agent against a former Russian agent and his daughter in Britain.

There were also reports of a new US Senate bill that would impose widespread sanctions on Russia for election meddling.

The rouble duly slid to its lowest since late 2016, with the dollar buying 65.50 roubles having jumped 3.4 percent overnight.

The pound skidded to its lowest against the dollar and euro in almost a year as fears grew Britain might leave the EU without a deal on trade with Brussels.

Traders reported a significant increase in investors hedging against a 'no-deal' Brexit, an event which could send sterling into free fall and hurt the economy by raising trade barriers with the UK's biggest export market.

Sterling was last trading at $1.2877, having dropped 0.4 percent overnight.

The Japanese yen seemed to be catching a bid as a traditional safe haven, with the dollar easing to 110.81 yen after stretching as high as 111.44 on Wednesday.

The euro was relatively steady at $1.1611, while the dollar index was a shade firmer at 95.098.

The New Zealand dollar shed 0.9 percent to a two-year trough at $0.6682 after the country's central bank took a dovish turn, pledging to keep rates at record lows well into 2020.

The Reserve Bank of New Zealand (RBNZ) said rates were likely to be on hold for longer and cut its forecasts for economic growth this year and next. —Reuters

Wall Street edges higher; US Fed meeting in focus

The three major U.S. stock indexes edged higher on Tuesday, logging closing records, with financial stocks providing the biggest boost a day ahead of the Federal Reserve's concluding statement from its two-day policy meeting.

The U.S. central bank is expected to announce when it will begin paring its bond holdings, and while a September interest rate increase is not expected, investors will closely study Fed Chair Janet Yellen's views on inflation for clues whether the Fed will raise rates in December.

"It seems the market is holding its breath and waiting for what the Fed has to say regarding the economy and any future interest rate hikes," said Ryan Detrick, senior market strategist for LPL Financial.

"The market could throw a little bit of a fit if they push (balance sheet reduction) back. It could hurt financials and the overall market might not like the uncertainty," he added.

Six of the 11 major S&P sectors closed higher, with the financial sector's 0.8 percent gain providing the biggest boost. The sector has risen in seven of the last eight sessions, clocking a 6 percent rise in that time.

If the Fed reduces its balance sheet, investors are betting that would lift yields for longer-term treasuries, which could boost bank profits, Detrick said.

The Dow Jones Industrial Average rose 39.45 points, or 0.18 percent, to 22,370.8, clocking its sixth straight record close. The S&P 500 gained 2.78 points, or 0.11 percent, to 2,506.65, hitting its fifth record closing high in the last six sessions.

The Nasdaq Composite added 6.68 points, or 0.1 percent, to 6,461.32, also squeaking out a record closing high, slightly above its Sept. 13 close.

The biggest percentage gain was the telecom services sector's 2.3 percent jump on merger and acquisition speculation.

The biggest U.S. telephone operators, Verizon and AT&T, rose more than 2 percent, providing the second- and third-biggest individual stock boosts for the S&P. Shares of smaller wireless carrier T-Mobile rose 5.9 percent and Sprint jumped 6.8 percent, following a report they were in active merger talks.

The healthcare index was one of the biggest laggards, with declines in insurers such as United Health , which fell 1.8 percent due to the latest efforts in Washington to overhaul Obamacare.

Best Buy fell 8 percent after the No. 1 U.S. electronics retailer forecast fiscal 2021 adjusted earnings well below Wall Street estimates. The stock was one of the biggest drags on the consumer discretionary index.

Tesla fell 2.6 percent after Jefferies started coverage of the electric car maker's stock with an "underperform" rating.

Advancing issues outnumbered declining ones on the NYSE by a 1.09-to-1 ratio; on Nasdaq, a 1.04-to-1 ratio favored advancers.

About 5.8 billion shares changed hands on U.S. exchanges. That compares with the 5.9 billion daily average for the past 20 trading days, according to Thomson Reuters data. — Reuters

Global stocks mostly fall on oil price slump

NEW YORK, United States — Global stocks mostly tumbled on Wednesday, with the energy sector taking a beating as worries about excess supply and ineffectual Opec policy hit oil prices.

Crude prices slid further after diving more than two percent on Tuesday on increasing fears that moves by Opec won’t be sufficient to prevent another supply glut due in part to rising shale output in the United States.

“Cheap oil is taking its toll on the global equity markets,” noted analyst Ipek Ozkardeskaya at trading firm London Capital Group.

Equity markets fell in Frankfurt, London, Paris and Tokyo. Leading US indices were mostly down, with the Dow and S&P 500 bruised by the oil rout, but the Nasdaq finished higher.

Aside from the drag of petroleum equities, whose profits are directly hit by lower commodity prices, the pullback in oil prices is a source of unease for the broader market because of worries that inadequate demand signifies slowing economic activity.

“The last two trading sessions have been a reminder of late 2015 and the beginning of 2016, when the collapse in the oil price sparked fears about global growth,” said analyst David Madden at CMC Markets.

“Investors are worried a depressed oil price could bring about a period of prolonged low inflation, which would have negative implications for growth.”

Worries about Opec

US oil prices ended at their lowest level since August on growing worries that Middle Eastern members of the Organization of the Petroleum Exporting Countries “will not be able to cooperate and work together,” said John Kilduff of Again Capital.

The pullback comes amid rising tensions between Opec kingpin Saudi Arabia and fellow members Iran and Qatar.

Contributing to the weakness was a mixed US petroleum supply report that showed lower overall commercial inventories, but higher US production and “lackluster” gasoline demand, said Kilduff.

Greg Priddy, an analyst at risk consultancy Eurasia Group, said the cartel is also stuck in a difficult cycle in which higher prices create incentives for producers in the US and other markets to raise production, putting renewed pressure on prices.

Petroleum-linked equities fell across global bourses, with France’s Total, Japan’s Inpex and US company Chevron all lower.

The London and Frankfurt stock markets ended the day down 0.3 percent, while Paris shed 0.4 percent in value.

But the tech-rich Nasdaq was a standout, finishing up a solid 0.7 percent after pharmaceutical and biotech shares advanced on expectations that President Donald Trump’s moves to crack down on runaway drug prices will not be as aggressive as feared.

Shanghai also bucked the trend to end up 0.5 percent after the US-based MSCI finally approved Chinese mainland-listed stocks, or A-shares, for inclusion in its emerging markets index. CBB

source: business.inquirer.net

Wall Street set to open higher on robust jobs data

U.S. stocks looked set to open higher on Friday after an upbeat monthly jobs report underscored the strength of the U.S. economy and firmed the odds for the first interest rate hike this year.

The Labor Department data showed 235,000 jobs were added in the public and private sectors in February, blowing past economists' average estimate of 190,000 as the construction industry recorded its largest gain in nearly 10 years.

Unemployment rate stood at 4.7 percent, while average earnings edged up 0.2 percent.

"I suspect that there is a positive impact from milder weather in February which may have skewed this number to the high side," said Alan Gayle, director of asset allocation at Ridgeworth Investments in Atlanta, Georgia.

"But the operative message is that the jobs market continues to strengthen, and that is likely to give the FOMC a green light to raise rates when they meet next week."

A slew of recent robust data has encouraged the Federal Reserve to turn more hawkish on interest rates.

The odds of a rate hike during the Fed's meeting next week edged up to 89.7 percent after the report, according to Reuters data.

Fed Chair Janet Yellen's conference after the two-day meeting next week will be closely watched for clues on the pace of future rate hikes.

Dow e-minis were up 88 points, or 0.42 percent, at 8:32 a.m. ET (1332 GMT), with 18,690 contracts changing hands.

S&P 500 e-minis were up 10.5 points, or 0.44 percent, with 191,460 contracts traded.

Nasdaq 100 e-minis were up 21 points, or 0.39 percent, on volume of 15,479 contracts.

In the 49 days of Donald Trump's presidency, the Dow Jones Industrial Average broke above 20,000 points and the S&P 500 crossed $20 trillion in market value on bets that he would usher in an era of tax cuts, simpler regulations and higher infrastructure spending.

However, the lack of detail on Trump's plans has raised questions about valuations and taken the heat off the post-election rally.

Wall Street closed little changed on Thursday as a late rebound in oil prices cut losses in the energy sector. Oil was up 0.7 percent on Friday.

Shares of big U.S. banks, including Goldman Sachs, Bank of America and Morgan Stanley, were up more than 1 percent in premarket trading.

Alexandria Real Estate Equities was off 5 percent at $108.04 after the REIT priced an offering of 6.1 million shares at $108.55 per share - a 4.5 percent discount to its Thursday close.

Finisar Corp dropped 17 percent to $29.11 after the network equipment maker issued disappointing revenue and profit forecasts for the current quarter. — Reuters

source: gmanetwork.com

US stock indexes slide in afternoon trading; oil rises

U.S. stocks moved broadly lower in afternoon trading Thursday, giving back the market’s gains from the day before. Financial, industrial and technology stocks were down the most, while phone company and real estate stocks edged higher. Investors were turning their focus to the next wave of corporate earnings reports in the weeks ahead.

KEEPING SCORE: The Dow Jones industrial average slid 105 points, or 0.5 percent, to 19,849 as of 1:28 p.m. Eastern Time. The Standard & Poor’s 500 index lost 10 points, or 0.5 percent, to 2,264. The Nasdaq composite index fell 33 points, or 0.6 percent, to 5,530.

BANK WOES: Banks and other financial companies were down as the yield on the 10-year Treasury note fell. Lower yields mean lower interest rates on loans and lower profits for banks. Cincinnati Financial shed $4.73, or 6.3 percent, to $70.16. PNC Financial Services Group lost $3.02, or 2.5 percent, to $117.76. Zions Bancorporation fell $1.22, or 2.8 percent, to $42.70.

HEFTY CHARGE: Hess slid 4.3 percent after the oil company said it will take a $3.8 billion charge in the fourth quarter. The stock fell $2.68 to $59.16.

UNDERCUT: Mylan fell 1.6 percent on news that rival CVS is now selling a generic version of Mylan’s EpiPen at about a sixth of its price. Mylan’s stock shed 59 cents to $36.70.

RED FLAG: Investors sold shares in KB Home after the homebuilder’s latest margins and outlook for this year fell short of Wall Street’s expectations, overshadowing the company’s improved earnings and sales. The stock slid 35 cents, or 2.1 percent, to $16.25.

ROAD HAZARD: Fiat Chrysler tumbled 16.1 percent on news that the U.S. government is accusing the automaker of violating vehicle emission laws. The Environmental Protection Agency said Thursday that Fiat Chrysler failed to disclose software in some of its vehicles with diesel engines that allows them to emit more pollution than allowed under the Clean Air Act. Shares in Fiat slid $1.69 to $8.78.

RESPLENDENT RISER: Tiffany & Co. was one of the biggest gainers in the S&P 500, rising $3.01 or 3.9 percent, to $80.75.

MARKETS OVERSEAS: In Europe, Germany’s DAX fell 1.1 percent, while France’s CAC 40 slid 0.5 percent despite new data showing eurozone industrial production jumped 1.5 percent in November. Britain’s FTSE 100 was flat. In Asia, Japan’s benchmark Nikkei 225 dropped 1.2 percent. Hong Kong’s Hang Seng dipped 0.5 percent, while Australia’s S&P/ASX 200 slipped 0.1 percent. South Korea’s Kospi bucked the trend to rise 0.6 percent.

ENERGY: Benchmark crude oil was up 78 cents, or 1.5 percent, at $53.03 a barrel in New York. Brent crude, which is used to price oil sold internationally, was up 91 cents, or 1.7 percent, at $56.01 a barrel in London.

BONDS: Bond prices rose. The yield on the 10-year Treasury slipped to 2.33 percent from 2.37 percent late Wednesday.

CURRENCIES: The dollar fell to 114.30 yen from 115.43 on Wednesday. The euro was rising at $1.0637 from $1.0576. The pound, which had been weakening recently amid concern that Britain might break off completely from the European Union’s single market, was moving higher versus the dollar Thursday. The British currency was down to $1.2176 from $1.2208. TVJ

source: business.inquirer.net

Asian shares mostly up as investors await more Brexit polls

MANILA, Philippines— Asian shares were mostly higher Wednesday, with investors focused on Thursday’s vote on Britain’s possible withdrawal from the European Union and after relief over U.S. Federal Reserve Chair Janet Yellen’s statement that the Fed would remain cautious in raising interest rates.

KEEPING SCORE: Japan’s Nikkei 225 was down 1 percent to 16,002.60 while China’s Shanghai Composite Index was up 0.4 percent to 2,891.03. Hong Kong’s Hang Seng index was up 0.3 percent to 20,730.25. Australia’s S&P ASX 200 edged up 0.1 percent at to 5,281.60. South Korea’s KOSPI was up 0.4 percent at 1,990.07. Southeast Asian markets were mostly up.

ANALYST VIEWPOINT: “We still have three polls on UK referendum before the vote, and another shift back to ‘Brexit’ will see risk appetite disappear in a jiffy,” said Bernard Aw, IG market strategist, as the polls showed “remain” with a slight lead over “leave” sentiment. “Despite a positive performance in the overnight markets, Asia will continue to trade cautiously.”

WALL STREET: U.S. stocks rose Tuesday as investors were relieved to hear Federal Reserve Chair Janet Yellen say the Fed would remain cautious in raising interest rates. Stocks hardly budged for most of the day as investors were occupied by Yellen’s Congressional appearance and the looming vote on Britain’s possible withdrawal from the European Union. For the second day in a row, stocks traded higher and bond prices fell as investors felt a bit surer that Britain will stay in the EU. The Dow Jones industrial average picked up 24.86 points, or 0.1 percent, to 17,829.73. The Standard & Poor’s 500 index rose 5.65 points, or 0.3 percent, to 2,088.90. The Nasdaq composite added 6.55 points, or 0.1 percent, to 4,843.76.

OIL: Benchmark U.S. crude rose 19 cents to $50.04 a barrel in New York. On Tuesday, it fell 52 cents, or 1.1 percent, to $48.85 a barrel. Brent crude, the benchmark for international oil prices, was also up 15 cents to $50.77 a barrel in London. On Tuesday, it slipped 3 cents to $50.62 a barrel.

CURRENCIES: The dollar fell to 104.45 yen from 104.76 yen the previous day. The euro rose to $1.1271 from $1.1251 on Tuesday.

source: business.inquirer.net

Global stocks surge as investors welcome Fed assurance

MANILA, Philippines — Global stocks surged Wednesday as investors welcomed the latest signal from the U.S. Federal Reserve that it will move slowly to raise interest rates. Japan’s Nikkei 225 bucked the trend and closed lower.

KEEPING SCORE: Britain’s FTSE 100 rose 1.4 percent in early trading to 6,193.27. Germany’s DAX climbed 1.4 percent to 10,024.07, while France’s CAC 40 gained 1.4 percent to 4,429.74. U.S. futures augured a positive opening on Wall Street, with Dow futures up 0.5 percent to 17,628 and S&P futures rising 0.5 percent to 2,057.

ASIA’S DAY: Tokyo’s Nikkei 225 lost 1.3 percent, closing at 16,878.96, on the continuing strong yen and the trade ministry’s announcement of a 6.2 percent month-on-month drop in industrial production in February. Hong Kong’s Hang Seng index climbed 2.2 percent to 20,803.39. China’s Shanghai Composite surged 2.8 percent to 3,000.65, while South Korea’s KOSPI rose 0.4 percent to 2,002.14. Australia’s S&P ASX 200 was up 0.1 percent at 5,010.30. Southeast Asian markets also rose.

ASIA’S ECONOMY: Softer growth prospects for China and a weak recovery in major industrial economies are expected to push down economic growth in developing Asia to 5.7 percent in 2016 and 2017, below previous projections, according to an Asian Development Bank report released Wednesday. The region’s economy grew 5.9 percent in 2015. The Asian Development Outlook 2016 said China’s economic growth is seen moderating to 6.5 percent this year from 6.9 percent last year and to 6.3 percent next year. Slower exports, a falling labor supply and supply-side reforms are reshaping the world’s second-largest economy toward more domestic consumption and a further reduction in excess industrial capacity, it said.

THE QUOTE: “September is now the only date the markets are pricing with a better than 50 percent probability of a (U.S.) rate hike,” said IG market analyst Angus Nicholson. “A weaker U.S. dollar not only benefits the dollar-denominated price of many commodities, which are a key export for most emerging markets, but it also lowers the burden of U.S. dollar-denominated debt in a range of emerging markets.”

ENERGY: Benchmark U.S. crude gained 71 cents, rising to $39.00 a barrel in electronic trading on the New York Mercantile Exchange. The contract shed $1.11, or 2.8 percent, to $38.28 a barrel on Tuesday. Brent crude, used to price international oils, was up 60 cents at $40.45 a barrel in London.

CURRENCIES: The dollar declined to 112.23 yen from 112.77 yen. The euro rose to $1.1315 from $1.1287. TVJ

source: business.inquirer.net

Asian indexes little changed as Belgian attacks worries ease

TOKYO — Asian stock indexes fell Wednesday in cautious trading, following the deadly bombings in Belgium.

KEEPING SCORE: Japan’s benchmark Nikkei 225 fell 0.3 percent to 17,000.98. South Korea’s Kospi edged 0.1 percent lower to 1,995.12. Hong Kong’s Hang Seng fell 0.7 percent to 20,524.41, while the Shanghai Composite dropped 0.5 percent to 2,983.86. Australia’s S&P/ASX 200 lost 0.5 percent at 5,204.30. Southeast Asian markets were mostly lower.

ATTACK WOES: News of the attacks in Belgium, which killed at least 34 people, had pulled global markets lower, and airlines and travel companies continued to slip in Asia. Major Japanese carrier ANA fell 0.6 percent, while Australia’s flagship carrier Qantas Airways was down nearly 0.3 percent. HIS Co., a major Japanese travel company, slipped 2.3 percent.

WALL STREET: The Dow Jones industrial average lost 41.30 points, or 0.2 percent, to 17,582.57. The Standard & Poor’s 500 index dipped 1.80 points, or 0.1 percent, to 2,049.80. The Nasdaq composite added 12.79 points, or 0.3 percent, to 4,821.66.

THE QUOTE: “The Brussels explosions gave the market a shock yesterday,” said Margaret Yang Yan, market analyst at CMC Markets Singapore. “This attack, together with a series of terrorist attacks believed to have been perpetrated by ISIS since last year, will have an impact on investors’ confidence.”

ENERGY: U.S. crude slipped 52 cents to $40.93 a barrel in electronic trading on the New York Mercantile Exchange. It fell 7 cents to $41.45 a barrel on Tuesday. Brent crude, the benchmark for international oils, fell 38 cents to $41.41 a barrel in London.

CURRENCIES: The euro rose slightly to $1.1206 from $ $1.1200, while the dollar rose to 112.34 yen from 111.65 yen. TVJ

source: business.inquirer.net

Global stocks decline ahead of Fed meeting

BEIJING — Global stocks declined Wednesday as investors awaited this week’s U.S. Federal Reserve meeting, expecting possible insights into the state of global growth and future Fed moves.

KEEPING SCORE: In early trading, Britain’s FTSE 100 fell 0.6 percent to 6,136.50, France’s CAC-40 fell 0.5 percent to 4,482.50 and Germany’s DAX shed 0.4 percent to 9,945.74. On Monday, the DAX rose 1.4 percent and the CAC-40 and FTSE both added 0.4 percent. On Wall Street, futures for the Dow Jones industrial average and Standard & Poor’s 500 index both declined 0.4 percent.

ASIA’S DAY: Tokyo’s Nikkei 225 lost 0.7 percent to 17,117.07 and Hong Kong’s Hang Seng declined 0.7 percent to 20,288.77. Sydney’s S&P ASX 200 fell 1.4 percent to 5,111.40 and India’s Sensex retreated 0.9 percent to 24,580.54. Seoul’s Kospi was off 0.1 percent at 1,969.97 and Taiwan, Singapore, Bangkok and Jakarta also fell. The Shanghai Composite Index gained 0.2 percent to 2,864.37 and New Zealand also rose.

WATCHING THE FED: The Federal Reserve’s Federal Open Market Committee meets Tuesday and Wednesday. Investors don’t expect a rate hike but are watching for indications of possible future Fed moves. In December the Fed raised interest rates for the first time in almost a decade, but it left them unchanged in January.

ANALYST’S TAKE: “The most anticipated item on the U.S. economic calendar this week is the FOMC meeting, even though policy will almost certainly be left on hold. With no change in rates, the focus will be entirely on forward guidance,” said Jim O’Sullivan of High-Frequency Economics in a report.

JAPAN CENTRAL BANK: The Bank of Japan left its monetary policy unchanged Tuesday but downgraded its assessment of conditions in the world’s third-largest economy, citing risks from weaker growth in China and other emerging economies and volatility in financial markets, among other factors.

CURRENCY: The dollar slipped to 112.99 from 113.79 yen. The euro edged up to $1.1108 from Monday’s $1.1105.

ENERGY: Benchmark U.S. crude shed 82 cents to $36.36 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.32 on Monday to close at $37.18. Brent crude, used to price international oils, lost 84 cents to $38.69 per barrel in London. On Monday, the contract declined 86 cents to $39.53. TVJ

source: business.inquirer.net

Wall Street lower as investors turn cautious; Apple drags

Apple dragged Wall Street lower on Tuesday, cutting short a feeble recovery from a bruising selloff on the first trading day of the year.

A fall in crude oil prices and a stronger dollar also contributed to the shaky start to the year, which was triggered by weak Chinese economic data on Monday.
In a bid to stabilize its markets, the People's Bank of China on Tuesday injected $20 billion into the financial system.

"Fears of a global recession are valid and fears about China are valid, and they will put some downward pressure on stocks in general, so I do expect 2016 to be negative, but not by much," said Mohannad Aama, managing director, Beam Capital Management in New York.

Apple's shares were down 2.5 percent at $102.68 after the Nikkei reported that the iPhone maker was expected to cut production of its 6S and 6S Plus models.

The stock was the biggest drag on the S&P 500 and the Nasdaq, while Goldman Sachs weighed the most on the Dow.

At 12:30 p.m. ET (1730 GMT), the Dow Jones industrial average was down 86.84 points, or 0.51 percent, at 17,062.1, the S&P 500 was down 5.71 points, or 0.28 percent, at 2,006.95 and the Nasdaq Composite index was down 23.04 points, or 0.47 percent, at 4,880.05.

Six of the 10 major S&P sectors were lower, led by a 0.87 percent decline in the energy sector. Exxon and Chevron weighed the most.

Gilead rose 0.9 percent to $98.89 after its experimental hepatitis B drug was found safer than but as effective as its approved treatment, Viread.

Eli Lilly reversed course to trade up 1 percent at $83.66 after the drugmaker said its diabetes treatment grabbed market share in the fourth quarter.

First Solar was up 6.8 percent at $71.20 after Goldman Sachs upgraded the stock to "buy".

Declining issues outnumbered advancing ones on the NYSE by 1,538 to 1,453. On the Nasdaq, 1,529 issues fell and 1,178 rose.

The S&P 500 index showed three new 52-week highs and five new lows, while the Nasdaq recorded 14 new highs and 43 lows. — Reuters

Wall Street suffers feeble end to turbulent 2015

Wall Street dropped on Thursday, leaving the S&P 500 marginally lower for a year marked by record highs as well as a major selloff.

In a reversal of one of 2015's major trends, oil shares moved higher, with the S&P energy sector up 0.34 percent and alone among gainers.

Much of the blame for this year's underwhelming stock market performance can be laid at the feet of crude oil prices, which lost a third of their value during an unprecedented global glut. The energy sector fell 24 percent, its worst annual performance since the global recession.

The S&P 500 hit a record high in May only to slump 11 percent over eight days in August over fears of a China-led global economic slowdown. The CBOE Volatility index spiked to a seven-year high before the market recovered.

On the last trading day of 2015, the S&P 500 fell 0.94 percent to 2,043.94 points, leaving it with a total loss of 0.71 percent for the year. The S&P's total return, including dividends, was about 1.40 percent, according to preliminary data.

"If you went to sleep on Dec. 31, 2014, and woke up today, you'd say what a dull year it's been, and yet in between we've had these wild swings," said Donald Selkin, chief market strategist at National Securities in New York.

"The lesson is that people should watch the extremes. On those big down days, hold your nose and buy - and don't be afraid."

The Dow Jones industrial average lost 2.23 percent for the year, its first annual decline since 2008. The Nasdaq Composite gained 5.73 percent after surpassing levels not seen since the dot-com bubble in 2000.

Eight of the 10 worst performers on the S&P this year were energy companies, led by Chesapeake Energy's 77-percent slump.

The consumer discretionary sector, on the other hand, was the S&P's best performer, rising 8.43 percent thanks to Netflix's 134-percent increase and Amazon's 118-percent surge.

Consumer stocks also took the top three spots on the Dow, led by Nike's 30-percent increase in 2015.

Good riddance!

With much of the day's losses suffered in the last few minutes of trade, the Dow Jones industrial average fell 1.02 percent to end at 17,425.03. The Nasdaq Composite lost 1.15 percent to 5,007.41.

Nine of the 10 major S&P sectors fell Thursday, led by a 1.43-percent fall in the technology sector.

Many of the risks that worried investors this year will remain front and center in 2016.

"Elevated valuations, modest earnings growth and muted economic activity. Of course, there is the additional variable of rising interest rates," said David Joy, chief market strategist at Ameriprise Financial in Boston.

Apple dropped 1.92 percent and was the biggest drag on all three indexes. Its stock has been pressured by concerns about potentially weak iPhone sales and ended the year down 4.5 percent, its first annual loss since 2008.

"Apple is caught between being a growth stock and being a value stock and it's caught in the abyss," said John Augustine, chief investment officer at Huntington Wealth & Investment Management.

Investors next week will watch for a potential "January effect," when stocks that were sold in December for year-end tax purposes bounce back.

Volume on U.S. exchanges was 5.3 billion shares, below the 7.2 billion average over the last 20 trading days, according to Thomson Reuters data.

Advancing issues outnumbered decliners on the NYSE by 1,882 to 1,163. On the Nasdaq, 1,869 issues fell and 1,022 advanced.

The S&P 500 index showed one new 52-week highs and two new lows, while the Nasdaq recorded 32 new highs and 72 new lows. — Reuters

Equities pulled lower by oil, China concerns

NEW YORK - Global equities were lower on Monday, pressured by another downdraft in oil prices and worries over growth in China's economy, while the holiday season kept trading volumes muted.

Prices of both Brent and U.S. crude dropped more than 3 percent , reversing a brief rebound and dragging U.S. energy shares down 1.8 percent as the worst performing of the major S&P sectors.

Crude again moved within sight of an 11-year low. Brent settled at $36.62 and U.S. crude settled at $36.81 as last week's short-covering dried up and players worried that prices had more room to swoon.

"You have energy and tax-loss harvesting moving markets back and forth in these last few weeks," said Tim Courtney, Chief Investment Officer at Exencial Wealth Advisors, which oversees $1.4 billion in assets.

In contrast to oil, U.S. natural gas prices settled up 10 percent at $2.228 per million British thermal units as forecasts for colder temperatures led to bets that long-delayed winter weather was finally arriving.

The Dow Jones industrial average fell 23.9 points, or 0.14 percent, to 17,528.27, the S&P 500 lost 4.45 points, or 0.22 percent, to 2,056.54 and the Nasdaq Composite dropped 7.51 points, or 0.15 percent, to 5,040.99.

A weak batch of industrial profits raised concerns about China's economy and sent Chinese stocks lower by almost 3 percent, their biggest drop in a month.

Profits at Chinese industrial companies in November fell 1.4 percent from a year earlier, the sixth consecutive month of decline and another sign that the world's chief engine of growth for the past decade is sputtering.

MSCI's broadest index of Asia-Pacific shares outside Japan gave up early modest gains to fall 0.53, putting it on track for a 12-percent loss this year.

With trading light in the United States and Europe between Christmas and the upcoming New Year's holidays, as well as a holiday on Monday in the United Kingdom, markets could see exaggerated moves this week.

MSCI's all-country world index lost 0.22 percent, while the pan-European FTSEurofirst 300 index closed down 0.54 percent.

In Europe, the drop in oil prices put pressure on energy stocks such as Repsol and Total.

Yields on benchmark 10-year Treasury notes inched down to 2.2322 percent, up 3/32 in price.

The dollar edged lower against a basket of major currencies, off 0.03 percent at 97.951 as bullish bets on the currency this year on a U.S. Federal Reserve rate hike met year-end profit-taking.

But the drop in oil prices hurt currencies linked to the commodity, such as the Australian and Canadian dollars.

The Australian dollar fell 0.1 percent to $0.7248 while its Canadian counterpart fell 0.6 percent to $1.3902, heading back towards this month's 11-year lows.

Spot gold was down 0.7 percent at $1,068.19 an ounce and was on track for its sixth straight quarterly decline, its longest run of quarterly losses since the mid-1970s. —Reuters

Dow, S&P 500 end down slightly as Apple, energy weigh

The Dow and the S&P 500 edged lower on Monday as energy shares dropped with oil prices and Apple retreated a day before its quarterly results.

Investors were cautious ahead of the Federal Reserve's two-day policy meeting, which begins on Tuesday. The market is looking for clues on the outlook for when the Fed may begin raising interest rates.

Apple shares fell 3.2 percent to $115.28, making it the biggest drag on all three major indexes, while a weak outlook from one of its suppliers, Dialog Semiconductor , led a fall in other semiconductors. An index of semiconductors was down 2 percent after three days of gains.

The iPhone maker reports quarterly results after the market closes on Tuesday.

"With Apple, it's more about their forecast and China news and any upgrades they may want to announce," said Rick Meckler, president of LibertyView Capital Management in Jersey City, New Jersey.

The S&P energy sector fell 2.5 percent, leading sector declines for the S&P 500. Crude oil prices slipped as global oversupply pushed fuel storage sites close to capacity. Exxon fell 2.1 percent to $81.22, while Chevron was down 2.7 percent to $88.77.

US stocks have mostly gained in October after a weak third quarter. The S&P 500 is up 7.9 percent for the month so far.

"It's been a pretty big move up, so we're seeing a little bit of consolidation today," Meckler said.

The Dow Jones industrial average fell 23.65 points, or 0.13 percent, to 17,623.05, the S&P 500 lost 3.97 points, or 0.19 percent, to 2,071.18 and the Nasdaq Composite added 2.84 points, or 0.06 percent, to 5,034.70.

Among the top Nasdaq gainers, shares of Ctrip.com were up 22.1 percent at $90.78 after the online travel firm said it would merge with Qunar Cayman Islands. Qunar jumped 7.9 percent to $42.65.

Strong quarterly results from tech companies have helped improve expectations for overall US third-quarter earnings.

S&P 500 earnings are forecast to have declined 2.8 percent in the quarter, based on actual results from about 35 percent of the S&P 500 companies and estimates for the rest, compared with a 4.2 percent decline forecast at the start of the month, according to Thomson Reuters data.

Data showed new US home sales fell 11.5 percent in September, suggesting a softening of the housing market. An index of housing shares was down 0.4 percent.

Other gainers included Pep Boys, which jumped 23.4 percent to $14.99 after it agreed to be acquired by Bridgestone for $15 per share.

Piedmont Natural Gas rose 36.9 percent to $57.82 after it agreed to be bought by Duke Energy. Duke Energy fell 2 percent.

After the bell, shares of Hartford Financial fell 4.7 percent to $46.50 following its results.

During the session, NYSE declining issues outnumbered advancers 1,916 to 1,153, for a 1.66-to-1 ratio; on the Nasdaq, 1,749 issues fell and 1,077 advanced, for a 1.62-to-1 ratio favoring decliners.

The S&P 500 posted 36 new 52-week highs and eight lows; the Nasdaq recorded 111 new highs and 73 lows.

About 6.1 billion shares changed hands on US exchanges, below the 7.3 billion daily average for the past 20 trading days, according to Thomson Reuters data. — Reuters