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

Asian shares track Wall Street losses on weak US factory data

BANGKOK – Asian shares are lower after U.S. stocks posted their worst loss in five weeks on Wednesday after a surprisingly limp report on the nation’s manufacturing that stirred worries about the economic outlook.

Japan’s Nikkei 225 index shed 0.6% to 21,758.02 while the Hang Seng in Hong Kong lost 0.4% to 25,980.37. Sydney’s S&P ASX 200 gave up 1.3% to 6,658.20.

The Kospi in South Korea sank 1.4%, to 2,044.01 after North Korea fired a ballistic missile toward the sea Wednesday, South Korea’s military said, in a display of its expanding military capabilities hours after saying it would resume nuclear diplomacy with the United States this weekend.

The report showed that manufacturing weakened in September for the second straight month as President Donald Trump’s trade war with China dragged on confidence and factory activity. It dashed economists’ expectations that August’s contraction had been an aberration, and stocks and bond yields immediately reversed course to drop sharply lower following the report.

The S&P 500 slumped 1.2% to 2,940.25 for its sharpest loss since August. The Dow Jones Industrial Average fell 1.3% to 26,573.04, and the Nasdaq composite dropped 1.1% to 7,908.68.

Small-company stocks fell more than the rest of the market. The Russell 2000 index lost 2%, to 1,493.43.


In the bond market, the yield on the 10-year Treasury dropped to 1.66% from 1.74% before the report’s release, which is a big move. Three stocks fell for every one that rose on the New York Stock Exchange, and gold climbed as investors sought safer ground.

Economists had been expecting growth to resume in September, and they had forecast a reading of 50.4, according to FactSet.

Manufacturers say global trade remains the most significant issue, and all the uncertainty caused by the trade war is hurting exporters in particular. Businesses are unsure what the rules of international trade will be, and it’s causing CEOs to pull back on their spending plans. In a separate report, the World Trade Organization said global trade growth will slow to its weakest pace this year since 2009.

“The disappointing data is only fanning long-standing fears of slowing global growth,” said Alec Young, managing director of Global Markets Research at FTSE Russell.

Manufacturing is a relatively small part of the economy, but investors worry about whether it will spill into other areas. That puts an even bigger spotlight on Friday’s jobs report, which economists expect to show an acceleration in hiring.


Household spending has been a pillar for the economy, particularly when manufacturing and business spending are under threat, and a strong job market helps households keep spending. But uncertainty is looming even there.

A report last week showed that consumer spending rose less than economists expected in August. Two reports on consumer confidence last week gave a mixed picture, with one falling below expectations and the other rising above.

Last month’s jobs report was also surprisingly weak, but that may have been a one-off, some analysts say.

“The month of August over the last 10 years has been the wonkiest jobs report of the year,” said Philip Orlando, chief equity market strategist at Federated Investors. It often falls below expectations, only for the numbers to be revised higher in subsequent months, he said.

“There’s no question the data has been softer, slower, weaker, pick your adjective for today versus a year ago,” Orlando said about the broad economy. “But I do think we’re going to get through this.”

The Fed and other central banks around the world have been aggressive in keeping rates low to shield against the effects of the trade war and slowing global economic growth. The Fed lowered short-term rates twice this summer, down to a range of 1.75% to 2%, the first cuts since the financial crisis was toppling economies around the world in 2008.

Benchmark crude oil rebounded, gaining 56 cents to $54.18 per barrel in electronic trading on the New York Mercantile Exchange. It fell 45 cents to $53.62 a barrel on Tuesday. Brent crude oil, the international standard, picked up 41 cents to $59.30 per barrel.

The dollar rose to 107.87 Japanese yen from 107.73 yen on Tuesday. The euro strengthened to $1.0937 from $1.0934. /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

Asian markets rally, yuan edges up after US gains

Asian markets rose on Monday after a healthy lead from Wall Street as positive US jobs data trumped fresh trade war threats, while the yuan extended a recovery after the Chinese central bank moved to support the unit.

Hong Kong led gains as the week got off to an upbeat start, with dealers tracking their New York and European counterparts following recent painful losses.

Data on Friday showed that while the US economy saw a slowdown in jobs creation in July, the pace of hiring remained strong over the past three months.


The report also showed wage growth remained tepid, helping temper worries about an overheating economy.

The result provided some much-needed cheer to markets, which managed to brush off a warning from Beijing that it would impose new tariffs on $60 billion worth of US goods if Washington pushes ahead with levies on $200 billion of Chinese imports.


Despite reports that unofficial talks have been held between the two sides, trade tensions continue to rise with a top White House advisor calling China a bad bet and saying its economy — the world’s second biggest — was struggling.

Still, equity traders were in a buying mood Monday. Hong Kong piled on more than one percent while Shanghai added 0.2 percent and Tokyo went into the break 0.5 percent higher.

Sydney rose 0.7 percent, Singapore jumped more than one percent and Taipei was 0.3 percent stronger. Jakarta climbed 0.7 percent despite an earthquake that rattled the island of Lombok, killing dozens of people.

– Pound struggles –
Support also came from the People’s Bank of China decision late Friday to unveil measures making it harder to bet against the yuan, which has suffered steep losses the past two months.

The currency, which is around lows not seen for more than a year, bounced back soon after the announcement and it extended the gains Monday.

The bank’s measure was similar to a move when the currency went into freefall following a devaluation three years ago that rattled global markets.

However, analysts were lukewarm on the move with some saying it indicated Chinese leaders were growing increasingly worried about the unit’s depreciation.

“The yuan kept falling when China did this last time in 2015, so I don’t think the PBoC’s move will significantly change the market tone,” Hao Hong, chief strategist at Bocom International Holdings, told Bloomberg News.

“No matter what happened over the weekend, the weakness in Chinese stocks may continue. The trade war is nowhere near its end and China’s economy is slowing down, so why would the trend reverse?”

In another forex trading, the pound was fighting to recover from Friday’s sell-off that came after Bank of England boss Mark Carney warned the chances of leaving the EU without a proper deal was “uncomfortably high” and “highly undesirable”.

While he said such a situation was still “unlikely” compared with other outcomes, the comments come as leaders on both sides are struggling to reach a compromise with just months to go before Britain is due to formally exit.

The remarks sent sterling tumbling, with an interest rate hike last week unable to provide any support.

Key figures at 0300 GMT

Tokyo – Nikkei 225: UP 0.5 percent at 22,626.56 (break)

Hong Kong – Hang Seng: UP 1.2 percent at 28,008.62

Shanghai – Composite: UP 0.2 percent at 2,745.04

Euro/dollar: DOWN at $1.1563 from $1.1567 at 2100 GMT on Friday

Pound/dollar: DOWN at $1.2996 from $1.3005

Dollar/yen: DOWN at 111.20 yen from 111.25 yen

Oil – West Texas Intermediate: UP 18 cents at $68.67

Oil – Brent Crude: UP 15 cents at $73.36 per barrel

New York – Dow Jones: UP 0.6 percent to 25,462.58 (close)

London – FTSE 100: UP 1.1 percent at 7,659.10 (close)

source: business.inquirer.net

Apple becomes 1st private company worth $1 trillion

NEW YORK — Apple became the first private-sector company to surpass $1 trillion in market value Thursday following its latest surge after reporting strong quarterly earnings.

Shares of Apple briefly hit $207.05 in late-morning trading, before retreating somewhat. The gains came after the iPhone maker reported strong earnings late Tuesday that prompted a two-day rally in the share price.

The company’s stock was at $206.85, up 2.7 percent near 1620 GMT. Apple said it currently has 4.83 billion shares outstanding.

As with other landmarks — such as the Dow crossing 25,000 for the first time —the Apple record is significant because of its resonance beyond the financial universe.

“The $1 trillion mark is more psychological, and sends a message of growth and size into the market,” said Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.

But many financial insiders view the record as a non-event, despite breaching the psychological barrier.

“There’s no real excitement on the trading desk,” said Karl Haeling of LBBW. “It’s one of those things that does not mean anything by itself… it’s more a testimony of the importance of Apple on the market.”

The landmark is the latest victory for Apple chief executive Tim Cook, who faced skepticism when he took reins of the iconic technology giant in 2011.

Credit to Cook 

He took over after the death of founder Steve Jobs, who was identified with launching many of Apple’s most iconic products, including the iPhone smartphone and the iPad tablet.

But Cook has gradually won accolades from investors by pumping out a series of solid financial results and further spreading Apple’s products to China and other foreign markets.


On Tuesday, Apple reported that net profit jumped more than 30 percent to $11.5 billion. Revenue in the fiscal third quarter soared 17 percent to $53.3 billion from the same period a year earlier due to sales of pricier iPhones, online services and wearable devices.

The record also cements the continued supremacy of US technology companies to the broader market, with other large technology giants Amazon, Google-parent Alphabet, Microsoft and Facebook regularly rounding out the top five in market

Apple is the first private sector company to reach this level, but state oil company PetroChina briefly broke the $1 trillion barrier in 2007 during its initial public offering, but has since dropped back down. /ee

source: technology.inquirer.net

Financials weigh on Wall Street as tariff worries return

U.S. stocks fell on Thursday, weighed down by financials, as worries of a trade war between the United States and China were heightened after President Donald Trump proposed 25 percent tariffs on $200 billion worth of Chinese imports.

U.S. Trade Representative Robert Lighthizer said Trump directed the increase from a previously proposed 10 percent duty because China has refused to meet Washington's demands and has imposed retaliatory tariffs on U.S. goods.

Beijing responded to the new threat saying it was ready to escalate the trade war.

Financials fell 0.6 percent, as JP Morgan and Bank of America dropped 0.6 percent each.

The Federal Reserve kept interest rates unchanged on Wednesday, but characterized the economy as strong, keeping the central bank on track to increase borrowing costs in September.

"Markets are substantially weaker as investors are spooked out by the latest development in the trade battle," said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey.

"Economic strength is evident and the jobs market is strong, but the trade war is creating turbulence for investors and trading is expected to be choppy, volatile and could easily change direction."

The technology sector dropped 0.18 percent. Microsoft fell 0.6 percent, the biggest drag on the sector.

The so-called FAANG group of stocks — Facebook, Apple , Amazon.com, Netflix and Google-parent Alphabet — dropped between 0.4 percent and 0.8 percent.

Chipmakers, whose major clients include Chinese companies, also declined, with Micron, Nvidia, AMD and Intel down between 0.5 percent and 1.2 percent.

Shares of trade-sensitive companies such as Caterpillar , Boeing and 3M fell more than 1 percent and weighed on the bluechip Dow Jones Industrial Average.

At 9:54 a.m. ET the Dow Jones Industrial Average was down 131.61 points, or 0.52 percent, at 25,202.21, the S&P 500 was down 9.43 points, or 0.34 percent, at 2,803.93 and the Nasdaq Composite was down 13.06 points, or 0.17 percent, at 7,694.22.

Eight of the 11 major S&P sectors were lower.

Tesla jumped 10 percent after the electric car maker convinced investors that it was able to produce positive cash flow and turn a profit.

DowDuPont's 2.8 percent drop, was the biggest drag on the S&P 500, after the chemical producer reported quarterly results.

Shares of TripAdvisor and Cognizant slipped 14.7 percent and 5 percent respectively, after their earnings failed to impress investors.

Declining issues outnumbered advancers for a 1.49-to-1 ratio on the NYSE and a 1.52-to-1 ratio on the Nasdaq.

The S&P index recorded five new 52-week highs and four new lows, while the Nasdaq recorded 43 new highs and 50 new lows. — Reuters

Most Asian markets rise as 2018 rally extends

The equity rally that has kicked off 2018 continued on Friday, with Asian markets picking up the baton from another set of records on Wall Street.

Dealers are now turning their attention to the release later in the day of key US jobs data, which is expected to show the world’s top economy continuing to improve.

A forecast-smashing reading Thursday on private take-ups boosted optimism, which had already been bolstered by US tax cuts, healthy corporate profits and strong manufacturing figures from around the world.

Global markets powered ahead in 2017 as economies showed long-running improvements after years of faltering.

Greg McKenna, chief market strategist at AxiTrader, said in a note that data from the manufacturing and services sectors “suggests economic strength across the globe remains robust”.

He noted that an index of world factory activity was at its highest level in seven years.

On Wall Street, the Dow ended above 25,000 for the first time, leading records across Wall Street.

In Tokyo, the Nikkei ended up 0.9 percent at a 26-year high following its more than three percent jump Thursday, while Sydney added 0.7 percent.

Seoul rose 1.3 percent, with dealers buoyed by news that North Korea had accepted the South’s offer of talks next week, further easing geopolitical tensions in the region.

Hong Kong gained 0.3 percent to chalk up a ninth-straight gain, while Shanghai closed 0.2 percent higher but Singapore eased 0.2 percent.

Pause in oil?

While oil prices inched down in Asia, they remain elevated after recent rises to around three-year highs thanks to Middle East tensions, while the US sees stockpiles fall as it is hit by a severe cold snap.

The latest gains have given impetus to petroleum-linked firms, sending them rallying this week. In Hong Kong, Sinopec was up more than one percent while CNOOC and PetroChina were also higher. Woodside Petroleum in Sydney was up along with Santos, though Tokyo-listed Inpex eased.

However, Ric Spooner, a Sydney-based analyst at CMC Markets, told Bloomberg News: “There’s been a one-way, very steep and uninterrupted rally off the last minor low in mid-December near $56, so it won’t be surprising to see a pause here.”

On forex markets, the dollar rose slightly against the euro, but the single currency remains buoyant with the eurozone continuing to improve, which raises the chances of a reduction in the region’s massive stimulus programme, bringing monetary policy in line with the Federal Reserve.

McKenna added: “It’s again the story of a weaker US dollar as the fact its data is solid and improving is lost on traders focused on expectations that the EU strength will drive the European Central Bank to chase the Fed, and that synchronised global growth will, in fact, drag most central banks along the tightening path.”

In early European trade, London was flat, Paris rose 0.3 percent and Frankfurt added 0.4 percent.

source: business.inquirer.net

Wall Street ends flat after Yellen; tech shares bounce

NEW YORK - The S&P 500 ended flat on Tuesday and the Nasdaq posted modest gains as technology shares bounced from sharp losses in the prior session and comments from Fed Chair Janet Yellen boosted expectations of a December rate hike.

Yellen said the Fed needs to continue gradual rate hikes and it would be imprudent to leave rates on hold until inflation reached the Fed's 2-percent target.

Earlier in the session, Atlanta Fed Chief Raphael Bostic, a non-voting member this year, said he would want "clear evidence" that prices were firming before committing to another rate increase, but did not rule out another hike in 2017.

Chances of a rate hike in December rose to 78 percent from about 40 percent a month ago, according to CME Group's FedWatch tool.

"Investors should be looking out for a December hike given we don’t know what happens to the Fed chair position next year. (Yellen), probably wants to be able to, knowing anyone new in that role might not feel comfortable tightening the first month," said Jack Ablin, chief investment officer at BMO Private Bank in Chicago.

Economic data showed U.S consumer confidence fell in September while home sales dropped to an eight-month low in August due to the impact of Hurricanes Harvey and Irma.

The Dow Jones Industrial Average fell 10.05 points, or 0.05 percent, to 22,286.04, the S&P 500 gained 0.23 points, or 0.01 percent, to 2,496.89 and the Nasdaq Composite added 9.57 points, or 0.15 percent, to 6,380.16.

Technology, up 0.4 percent, was the best performing major sector, recovering somewhat from losses in the prior session. Tech shares suffered their worst one-day drop in five weeks on Monday as concerns over tensions with North Korea prompted investors to book profits in what has been the best performing sector this year.

Apple rose 1.72 percent after four straight sessions of losses to help prop up the three major indexes, after Raymond James boosted its price target on the iPhone maker to $180 from $170.

"It is a little bit of a relief knowing perhaps investors still believe in buying the dips even after the Fed’s announcement of reduced balance sheet purchases," said Ablin.

President Donald Trump warned North Korea any U.S. military option would be "devastating" for Pyongyang, but said the use of force was not Washington's first option to deal with the North's ballistic and nuclear weapons program.

Darden Restaurants slumped 6.53 percent after the Olive Garden parent said it expected the negative effects on sales and earnings from Hurricane Irma to be about double that from Hurricane Harvey.

Red Hat rose climbed 4.09 percent after the Linux distributor's quarterly profit came in above estimates and the company raised its full-year forecast.

Advancing issues outnumbered declining ones on the NYSE by a 1.31-to-1 ratio; on Nasdaq, a 1.35-to-1 ratio favored advancers.

About 5.81 billion shares changed hands in U.S. exchanges, compared with the 5.96 billion daily average over the last 20 sessions. — Reuters

Asian shares droop, yen gains as Korean tensions rise

TOKYO - Asian shares slumped on Tuesday while the dollar remained off recent highs against the yen against the backdrop of rising tensions on the Korean Peninsula.

North Korea's foreign minister said on Monday that a weekend tweet by President Donald Trump counted as a declaration of war on North Korea and that Pyongyang reserved the right to take countermeasures, including shooting down US bombers even if they are not in its air space.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2 percent in early trade, following losses on Wall Street.

Australian shares were up 0.1 percent, while South Korean shares were 0.3 percent down.

Japan's Nikkei stock index sagged 0.2 percent, pressured by a stronger yen.

"In addition to North Korea, the stronger yen is affecting shares today, and there's also Apple's poor performance, after the report that it told suppliers to reduce parts shipments," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

Apple Inc shed 0.9 percent on Monday after it was reported the company had told suppliers to scale back shipments of parts for its upcoming iPhone X.

The dollar was slightly down against the yen at 111.70 and well shy of last week's two-month high of 112.725.

The yen tends to benefit during times of risk aversion due to Japan's net creditor status and the expectation that Japanese investors would repatriate assets when facing a crisis.

The euro edged up after tumbling on Monday following a severely diminished election victory for German Chancellor Angela Merkel that was accompanied by a surge in support for the far right.

Support for Merkel's conservatives unexpectedly slumped to its lowest since 1949 and the Social Democrats, partners in the outgoing coalition, said they would go into opposition.

The single currency was 0.1 percent higher at $1.1856 , while the dollar index, which tracks the greenback against a basket of six major rivals, was down 0.1 percent at 92.601.

Later on Tuesday, Federal Reserve Chair Janet Yellen is scheduled to speak on "Prospects for Growth: Reassessing the Fundamentals" at 1645 GMT.

On Monday, New York Fed President William Dudley said the US central bank is on track to gradually raise rates given factors depressing inflation are "fading" and the US economy's fundamentals are sound.

But Chicago Fed President Charles Evans said the Fed should wait until there are clear signs of faster wage and price growth before hiking rates again.

Crude oil prices gave back some of their gains after soaring more than 3 percent on Monday, with Brent hitting its highest in more than two years. Major producers said the global market was on its way to rebalancing, while Turkey threatened to cut oil flows from Iraq's Kurdistan region to its ports.

US crude eased 0.2 percent to $52.12 a barrel, after touching its highest levels since April on Monday. Brent crude edged up 0.1 percent to $59.10, after scaling its highest peak overnight since July, 2015. —Reuters

US jobs machine keep stock market humming

World stock markets were mostly higher Friday as investors welcomed strong US jobs data which all but sealed a Federal Reserve rate hike next week.

Wall Street and most European equity markets traded firm in response to the American economy generating 235,000 new jobs in February, well above what economists had forecast.

This was the missing piece of the puzzle Fed watchers were waiting for to make tighter credit a near-certainty when the US central bankers meet next week.

Lower-than-expected wage rises kept a few doubts alive, but mostly the jobs report hit the spot, analysts said.

Upbeat New York helped key European markets hold onto most of their early gains. London and Paris were up at the end of European trading, but Frankfurt slipped a smidgen into negative territory just before the closing bell.

Earlier, Japan’s Nikkei jumped 1.5 percent, with declines in the yen boosting exporters.

“Today’s US jobs report was more than adequate to justify a rate hike next week,” said Craig Erlam at Oanda.

‘Won’t bottle it’

“The only thing standing in the way of a rate hike now is the Fed itself,” he said, “but after its efforts over the last few weeks, surely even it won’t bottle it now.”

Higher interest rates are not in themselves reason for cheer in the stock market as borrowing costs rise, but analysts said rate rises are a much-needed token of Fed confidence in the US economy in times of uncertainty, including over President Donald Trump’s economic program.

“After all, monetary policy is set to be tightened further against the backdrop of strengthening US and global economies,” said Oliver Jones at Capital Economics.

Investors are “still unwilling to bet against higher prices despite strong odds of a rate increase in the US next week,” LCG analyst Jasper Lawler said of global stock markets.

Elsewhere, oil prices were back on a slippery slope, having earlier Friday recovered ground after sharp mid-week losses. US oil prices dropped 79 cents to $48.49 per barrel, its lowest level since late November.

Worries about a global supply glut, increased US production and questions about an OPEC-Russia led drive to cut output are keeping oil traders on edge.

Key figures around 2200 GMT

New York – Dow: UP 0.2 percent at 20,902.98 (close)
New York – S&P 500: UP 0.3 percent at 2,372.60 (close)
New York – Nasdaq: UP 0.4 percent at 5,861.73 (close)
London – FTSE 100: UP 0.4 percent at 7,343.08 (close)
Frankfurt – DAX 30: DOWN 0.1 percent at 11.963.18 (close)
Paris – CAC 40: UP 0.2 percent at 4,993.32 (close)
EURO STOXX 50: UP 0.3 percent at 3,420.54
Tokyo – Nikkei 225: UP 1.5 percent at 19,604.61 (close)
Hong Kong – Hang Seng: UP 0.3 percent at 23,568.67 (close)
Shanghai – Composite: DOWN 0.1 percent at 3,212.76 (close)
Euro/dollar: UP at $1.0672 from $1.0576 Thursday
Pound/dollar: UP at $1.2169 from $1.2162
Dollar/yen: DOWN at 114.78 yen from 114.98 yen
Oil – Brent North Sea: DOWN 82 cents at $51.37 per barrel
Oil – West Texas Intermediate: DOWN 79 cents at $48.49 per barrel

source: business.inquirer.net

Trump fears hang over global stocks

NEW YORK, United States — Wall Street stocks were pressured for a second session in a row Tuesday on a combination of worries about Trump administration policies and disappointing earnings.

Markets in Japan and Europe dropped with analysts citing worries about Trump’s controversial executive order on immigration. Fresh comments criticizing Germany from a White House economic advisor also dented sentiment on European bourses, analysts said.

“It’s a combination of disappointing earnings, Trump worries and macro news,” said Peter Cardillo, chief market economist at First Standard Financial.

US stocks were down most of the day, but finished above session lows. The stock moves came ahead of a Federal Reserve policy decision Wednesday that is expected to keep interest rates unchanged.

Among those to report disappointing results were oil giant ExxonMobil, which suffered a nearly 40 percent fall in fourth-quarter earnings to $1.7 billion and announced it was writing down the value of some assets due to low oil and natural gas prices.

Package shipping giant UPS was another loser, slumping nearly seven percent as it reported a loss of $239 million in the fourth quarter and projected weaker-than-expected 2017 profits due in part to ramped-up capital investments to improve e-commerce business.

Offsetting those declines was the benign response of pharma stocks to Trump comments in a meeting of top industry executives, reiterating a pledge to lower drug prices, but also saying he would work to slash regulations to streamline the drug-approval process. Most pharma equities ended higher.

Meanwhile, European markets reacted nervously to the latest broadside from a Trump economic advisor Peter Navarro, bashing Germany for exploiting an undervalued euro to take advantage of its trading partners.

Frankfurt dropped 1.3 percent, while Paris lost 0.8 percent.

The Navarro comments also boosted the euro against the dollar, analysts said.

“The Trump administration appears to be targeting currencies as part of its goal of realigning global trade back in favor of the US worker,” said London Capital Group analyst Jasper Lawler.

“Trump’s team criticizing the euro in the context of Brexit and populist candidates in upcoming European elections puts ‘eurozone breakup risk’ at the highest since the bloc’s inception,” he said.

Markets already were jittery after Trump’s much criticized executive order suspending the arrival of all refugees for a minimum of 120 days, Syrian refugees indefinitely and barring citizens from Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen for 90 days.

“Trump is proving to be even more erratic and unpredictable than many feared,” said XTB analyst David Cheetham. CBB

source: business.inquirer.net

Global stock markets mixed as oil price rally fizzles

SEOUL, South Korea — Global stock markets were mixed on Wednesday as investors awaited more policy details from U.S. president-elect Donald Trump. Oil prices retreated, snapping an overnight rally.

KEEPING SCORE: European markets started on a weaker note with Britain’s FTSE 100 down 0.1 percent to 6,783.36. Germany’s DAX lost 0.2 percent to 10,710.68 while France’s CAC 40 was nearly flat at 4,535.83. Futures augured a tepid start on Wall Street with Dow futures down 0.1 percent and S&P futures also dipping 0.1 percent.

ASIA’S DAY: Asian markets finished mostly higher. Japan’s Nikkei jumped 1.1 percent to 17,862.21 and South Korea’s Kospi gained 0.6 percent to 1,979.65. Hong Kong’s Hang Seng index closed 0.2 percent lower at 22,280.53, while China’s Shanghai Composite Index edged 0.1 percent lower to 3,205.06. Australia’s S&P/ASX was nearly unchanged at 5,327.70, while benchmarks in Taiwan and Southeast Asia were mixed.

ANALYST’S TAKE: “International markets showed signs of pausing to wait on evidence of policy specifics before extending moves in the direction of the ‘Trump themes’ of fiscal stimulus and inflation,” Ric Spooner, chief market analyst at CMC Markets, said in a daily commentary.

OIL: Oil prices rallied overnight on hopes that OPEC members would agree to lower output when they meet later this month. They wavered between gains and losses before turning lower again. Benchmark U.S. crude fell 41 cents to $45.40 per barrel in electronic trading on the New York Mercantile Exchange. The contract closed up $2.49, or 5.7 percent, to $45.81 per barrel on Tuesday. Brent crude, used to price international oils, lost 28 cents to $46.67 a barrel in London.

CURRENCIES: The dollar strengthened to 109.46 yen from 108.94 yen while the euro fell slightly to $1.0724 from $1.0731. TVJ

source: business.inquirer.net

Stocks, peso weaken on Trump fears

The local stock market tumbled sharply Wednesday, tracking a global financial market bloodbath as investors braced for a Donald Trump presidency in America.

The Philippine Stock Exchange index (PSEi) shed 188.76 points or 2.58 percent to close at 7,119.04 as Trump’s poll victory shocked global markets.

One stock that benefited from news of Trump’s poll victory was Century Properties Group, which surged by 20 percent. The company has a branding deal with Trump for a $150-million upscale residential project. Ahead of the US elections, President Duterte named company chair and founder Jose Antonio special envoy to the US.

The peso slightly slid against the dollar alongside weakness across regional currencies following Trump’s win, which the Bangko Sentral ng Pilipinas said could be a “global political risk.”

The domestic currency weakened to close at 48.59 to $1 from Tuesday’s close of 48.58:$1, staying at a seven-year low level.

At the Philippine Dealing System, the peso hit an intraday low of 48.85 against the dollar and a high of 48.57 after opening at 48.62. The total volume traded rose to $691.9 million from Tuesday’s $549.6 million.

“Regional currencies including the peso fell on renewed risk aversion surrounding market surprise in early results showing a Trump victory,” BSP Governor Amando M. Tetangco Jr. said in a text message to reporters.

Also, “market cautiousness on a possible retreat of the Fed from a December hike because of this market reaction is weighing on regional currencies,” Tetangco added.

“We will continue to closely monitor developments and provide liquidity to the market as needed to address market price action on renewed global political risk,” according to Tetangco.

“The (stock) market lost 2.5 percent in line with the region as Donald Trump’s apparent election victory was met with concern by investors. The main worry seems to be his ‘America first’ rhetoric, which is viewed by many as anti-trade,” said Manny Lisbona, president of PNB Securities.

Lisbona said the silver lining, however, was that the odds of a rate increase in December had declined to 50 percent from 82 percent, based on some news reports.

“Local markets sold off furiously as the Republican candidate seems destined for an upset victory as of 3:30 pm. The PSEi took its cues from performances of Asian bourses as well as the futures market, wherein the Dow (futures) slid as much as 860 points,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.

“Trump has promised a big change in the corporate sector and huge capital spending via infrastructure, leading to hiring and wage pressure. Massive tax cut is also promised. Foreign policy skill, which is clearly lacking, will be a test to the new administration. We can expect immediate flight to safety with gold and US treasuries being bid up,” Limlingan said.

The PSEi was led lower by the property counter, which fell by 3.47 percent, while the industrial and holding firms counter slipped by more than 2 percent. The services and financial counters fell by over 1 percent. Only the mining/oil counter rose, but by just 0.15 percent, as gold mining firms Lepanto and Philex advanced. Gold is deemed a good hedge against global economic uncertainties.

Investors dumped shares of URC (-6.76 percent) and ICTSI (-5.26 percent), two Philippine companies with sizable overseas businesses.

Ayala Land, Ayala Corp. and Megaword all fell by more than 4 percent while Metrobank, GT Capital and Jollibee all slid by more than 3 percent.

SM Prime, SM Investments Corp. and Metro Pacific Investments all slid by more than 2 percent while BDO and JG Summit declined by over 1 percent.

source: business.inquirer.net

Oil prices up in Asia but tremors over Brexit remain

SINGAPORE — World oil prices rebounded in Asia Tuesday on bargain hunting but tremors from Britain’s shock vote last week to leave the European Union continue to weigh on sentiment.

Financial markets are still reeling from Brexit’s fallout as investors sell riskier assets and flock to safe bets amid global economic uncertainty.

Asian stock markets resumed their losses early Tuesday, extending another sharp sell-off in Europe and New York.

At around 0330 GMT, US benchmark West Texas Intermediate for delivery in August was up 64 cents, or 1.38 percent, to $46.97 and Brent crude for August gained 60 cents, or 1.27 percent, to $47.76 a barrel.

Both contracts closed lower on Monday.

“The turmoil in the financial markets, triggered by the UK referendum results, is keeping the pressure on oil prices, which look set to clock a monthly loss in June,” said IG Markets Singapore analyst Bernard Aw.

“The lack of guidance from the UK government and the prospects of a leadership struggle continued to dampen investors’ appetite, and this should persist through the week,” he told AFP.

British Prime Minister David Cameron quit in the wake of the vote and the race is on to find his successor as party leader who would take over as prime minister.

Former London mayor Boris Johnson and Interior Minister Theresa May are considered to be the front-runners in the leadership race.

Policy makers in Europe are trying to calm global markets but analysts said uncertainty remains.

“Apart from economic considerations, concerns are that the Brexit vote could encourage other EU countries to seek their own referendums, including Netherlands, France, Spain and Greece,” DBS Bank said in a note.

It said “this could potentially revisit the EU breakup fears that plagued the region” a few years back.

A strengthening US currency — considered a safe investment in times of turmoil — will likely continue to dampen demand for dollar-priced oil which would become more expensive for holders of weaker units, Aw added.

source: business.inquirer.net

World stocks up as Britain leans towards EU remain vote

HONG KONG — Asia led a rally in global markets Monday, building on gains at the end of last week as polls suggest Britain’s upcoming referendum will result in the country staying in the European Union.

The average of the last six British European Union referendum polls put the Remain and Leave camps neck-and-neck at 50-50, excluding undecided voters, according to the What UK Thinks website.

Markets across Asia and Europe slid early last week as polls showed the Leave side a few percentage points for the June 23 vote, but showed some improvement Friday as the Remain camp gained ground.

The upswing comes after the International Monetary Fund warned that a Brexit vote could deal a “negative and substantial” blow to the British economy, adding that the “contagion effects” of a vote to leave the bloc could hit markets worldwide.

Tokyo closed up 2.34 percent, adding to gains of one percent at the end of last week to finish at 15,965.30. Hong Kong was up 1.69 percent by close, its steepest gain in two weeks.

After ending the morning slightly down, Shanghai eked out gains to close 0.13 percent, or 3.70 points, up at 2,888.81. The Shenzhen Composite Index, which tracks stocks on China’s second exchange, rose 0.44 percent.

European markets rose strongly at the start of trading with London’s benchmark FTSE 100 index jumping 2.10 percent, and Frankfurt and Paris up 2.30 and 2.60 percent respectively.

Gold was down 0.38 percent Monday, having hit a near two-year peak on Friday as investors sought the commodity on fears of the impact of a “leave” vote on the world economy.

‘Risk-on move’

The yen, often seen as a safe haven, eased slightly to 104.56 to the dollar in afternoon trade in Tokyo, from 104.19 yen in New York Friday as the “Stay” camp appeared to gain strength in the polls.

“We are seeing a risk-on move after the latest Brexit poll,” Niv Dagan, executive director at Peak Asset Management LLC in Melbourne, told Bloomberg.

“It may be short-lived and volatility is likely to remain high until Thursday’s vote. This really could still go either way.”

Oil prices extended gains on a weaker dollar, driving up demand for the commodity.

US benchmark West Texas Intermediate for July delivery was up 77 cents to $48.75 a barrel, while international benchmark North Sea Brent for August delivery was up 90 cents, trading at $50.07 a barrel.

Key figures around 0830 GMT

Tokyo – Nikkei 225: UP 2.34 percent at 15,965.30 (close)

Shanghai – Composite: UP 0.13 percent at 2,888.81 (close)

Hong Kong – Hang Seng: UP 1.69 percent at 20510.20 (close)

Euro/dollar: UP at $1.1342 from $1.1280 late Friday

Pound/dollar: UP at $1.4623 from $1.4348

Dollar/yen: UP at 104.56 yen from 104.19 yen

New York – DOW: DOWN 0.33 percent at 17,675.16 (close)

London – FTSE 100: UP 2.10 percent at 6,147.48

source: business.inquirer.net

Global winds chill business optimism in Europe

FRANKFURT, Germany — Business confidence fell in Germany and France this month, increasing concern that the global market turmoil may be weighing on the economy of the 19-member euro currency union.

Germany’s closely watched Ifo confidence index fell to 105.7 points in February from 107.3 last month, the third decline in a row. France’s INSEE index dropped to 100 points in February from 102 in January.

The data released Tuesday bolsters the argument for the European Central Bank to expand its monetary stimulus efforts at its next meeting March 10.

The central bank is currently pumping 60 billion euros ($66 billion) per month in freshly printed money into the financial system through bond purchases in an attempt to push up weak inflation and support a modest recovery. The eurozone grew 0.3 percent in the last three months of last year; unemployment remains high at 10.4 percent.

In Germany, the eurozone’s largest economy, business executives’ view of current conditions improved but their outlook for the next half-year worsened significantly.

Economist Carsten Brzeski at ING-DiBa called the reading a “wake-up call.”

“Global events have finally reached German companies’ boardrooms,” he wrote in an email research note.

The euro fell in currency markets, from around $1.1040 to under $1.10 before rebounding slightly.

The German survey indicated executives share worries about the global economy that have sent financial markets lower recently. China’s economy is slowing down, with unpredictable consequences for the rest of the world, while low oil and commodity prices have hit emerging market economies that supply much of the world’s growth these days. Financial market turmoil itself could have an impact by making businesses cautious about risking more investment in production.

The Ifo index is valued as a guide to where the economy is headed. The survey is based on monthly responses from about 7,000 firms.

Germany, the biggest economy in the 19-country euro currency union, is enjoying low unemployment of 4.5 percent and steady growth of 0.3 percent in the fourth quarter of last year. While exports have slowed, spending by consumers and the government has picked up.

The French confidence index slipped due to declining confidence among retailers. Manufacturing held up, suggesting global headwinds were not yet severely affecting the country’s gradual recovery.

Analyst Chantana Sam at HSBC Global Research said the fall in retail confidence could suggest that the impact from the terror attacks that left 130 people dead in November was lingering more than expected. Retail confidence remains below the level seen before the attacks.

Analysts say the ECB could try to help the economy by increasing its bond-buying stimulus program. It could also cut the interest rate on deposits it takes from commercial banks, currently minus 0.3 percent. The negative rate is a drastic step aimed at pushing banks to lend money rather than let it pile up at the central bank’s super-safe overnight deposit facility. The negative rate has also helped push the euro lower against other currencies, helping exporters. TVJ

source: business.inquirer.net

Asian shares resume slide on fears over Chinese economy

TOKYO - Asian stocks looked vulnerable to another sell-off on Tuesday, with investors gripped by fears of a hard landing for the Chinese economy, the world's most important growth engine.

Japan's Nikkei index fell 3.8 percent to six-month lows while the MSCI's broadest index of Asia-Pacific shares outside Japan hit fresh three-year lows.

Underlining concerns about China, Japanese Finance Minister Taro Aso said on Tuesday he hoped China would take action to stabilize its economy and that Tokyo had no plan for now to unveil its own new economic stimulus package.

MSCI's all country world index fell 3.8 percent on Monday to a 10 1/2-month low, its biggest fall in almost four years. It has lost 9.2 percent over five days.

Leading the losses were Chinese shares, which plunged more than 8 percent to post their biggest losses since 2007 on heightened worries that the Chinese economy was growing at a much slower pace than Beijing's 7 percent target for 2015.

Investors are also unnerved by uncertainty over US monetary policy. The Federal Reserve has said it plans to raise interest rates this year for the first time in almost a decade.

The heavy fall in share prices worldwide over the past week has sharply reduced expectations of a US rate hike in September, but the outlook is far from clear.

"There seems to be no consensus with the Fed on whether they are worried about acting too prematurely or too late," Toru Yamamoto, chief bond strategist at Daiwa Securities, said in report.

The S&P 500 Index fell 3.9 percent to a 10-month low on Monday. The CBOE volatility index, a key measure of US equity volatility, shot up to more than 50 percent at one point for the first time since the 2008 global financial crisis.

Because some investors often fund their investment in risk assets by borrowing low-yielding euro and yen, the sell-off in shares helped send both currencies to seven-month highs.

The euro rose as high as $1.1715 and last stood at $1.1571 while the yen strengthened to 116.15 to the dollar before stepping back to 118.80.

The dollar was not helped by falls in US bond yields either, which diminishes the currency's yield attraction.

The 10-year US Treasuries yield fell to a four-month low of 1.905 percent in choppy trade on Monday and last stood at 2.012 percent.

Oil prices plunged more than 6 percent on Monday to 6 1/2-year lows after the dive in Chinese equities market.

US crude futures traded at $38.38 per barrel, near Monday's low of $37.75.

Brent crude futures fell to $42.23 on Monday and last stood at $42.69.

Brent stood not far from $36.20, its low hit in the aftermath of the global financial crisis, having fallen more than 66 percent from last year's peak.

Copper, a good indicator of global economic activity because of its wide use, declined to a six-year low of $4,855 a tonne, falling more than 52 percent from its 2011.

The fall in commodity prices have hurt many commodity exporting countries' currencies.

The Australian dollar traded at $0.7177, having fallen to a 6-1/2-year low of $0.7044 on Monday. —Reuters

Wall St retreats after two-day advance; jobs data mixed

NEW YORK - U.S. stocks fell on Friday following a two-day rally as December's jobs report gave a mixed view of the economy, with financial shares leading the way lower.

All three major indexes posted slight losses for the week and fell back into negative territory for 2015.

U.S. nonfarm payrolls rose in December, topping Wall Street expectations, but wages unexpectedly fell.

"There was this tale of two cities, with very strong job gains but on the flip side a continued real moderation in wage growth. I think the market looked at that and was sort of confused about what that means," said Burt White, chief investment officer for LPL Financial in Boston.

"I actually think it's the best-case scenario. It showcases the U.S. economy is continuing to grow and repair the labor market, but at the same time, the muted wage growth means the Fed's going to stay lower for longer."

Fourth-quarter results from S&P 500 companies pick up next week, including JPMorgan Chase & Co and Wells Fargo . Both were among the biggest drags Friday, with JPMorgan down 1.7 percent at $59.34 and Wells Fargo down 1.6 percent at $52.68. The S&P financial index lost 1.3 percent, the day's worst-performing major sector.

The Dow Jones industrial average fell 170.5 points, or 0.95 percent, to 17,737.37, the S&P 500 lost 17.33 points, or 0.84 percent, to 2,044.81 and the Nasdaq Composite dropped 32.12 points, or 0.68 percent, to 4,704.07.

Friday's decline followed two days of more than 1 percent gains for the market, a rally fueled in part by minutes from the last Federal Reserve meeting, which reassured investors the central bank was in no hurry to start raising interest rates.

For the week, the Dow and Nasdaq were down 0.5 percent, while the S&P 500 lost 0.6 percent.

Oil prices resumed their slide after two days of relative calm, with Brent and U.S. crude lowest since April 2009 on persistent worry over a supply glut. The S&P energy sector fell 0.8 percent.

A number of retail shares fell after reporting December sales and providing forecasts. The S&P retail index ended down 1.7 percent.

Bed, Bath & Beyond dropped 6.7 percent to $74.09 and was among the S&P 500's biggest percentage decliners after the retailer forecast fourth-quarter earnings at the low end of expectations.

Macy's shares fell 2.8 percent to $65.92 a day after it said it would close 14 stores and cut some jobs.

About 6.3 billion shares changed hands on U.S. exchanges, below the 7.1 billion average for the last five sessions, according to BATS Global Markets.

NYSE decliners outnumbered advancers 1,916 to 1,139, for a 1.68-to-1 ratio; on the Nasdaq, 1,811 issues fell and 927 advanced, for a 1.95-to-1 ratio.

The S&P 500 posted 43 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 75 new highs and 45 lows.  — Reuters