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.”

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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 rise after buying mood on Wall Street ends week

TOKYO – Asian shares were mostly higher Monday cheered by a buying mood on Wall Street that came at the end of last week.

Japan’s benchmark Nikkei 225 edged up 0.3% in early trading to 23,414.51, while Australia’s S&P/ASX 200 added 0.2% to 6,722.90. South Korea’s Kospi edged up 0.3% to 2,088.76. Hong Kong’s Hang Seng lost earlier gains to inch down 0.2% to 26,451.16. The Shanghai Composite index fell 0.2% to 2,906.42.

“Markets were mostly higher on the solid U.S. jobs data print,” said Vishnu Varathan of the Asia & Oceania Treasury Department at Mizuho Bank in Singapore, adding that questions remained on whether would prove enough amid other global risks.

The surprisingly strong U.S. jobs report had put investors in a buying mood on Wall Street, extending the market’s winning streak to a third day.

The rally pushed the Dow Jones Industrial Average up by more than 300 points and erased the S&P 500’s losses from earlier in the week, nudging the benchmark index to a second consecutive weekly gain.

The Labor Department said employers added 266,000 positions, well above estimates of 184,000. The report also showed unemployment falling to a 50-year low. Separately, an index that measures how consumers feel about the economy showed an increase from last month.

The S&P 500 rose 28.48 points, or 0.9%, to 3,145.91. The index posted a 0.2% gain for the week, a solid pivot from losses of more than 1% as of late Thursday. It’s now within 0.3% of its all-time high set on Nov. 27 and up 25.5% so far this year.


The latest gains also helped stem some of the losses for the Dow and Nasdaq.

The Dow climbed 337.27 points, or 1.2%, to 28,015.06. The Nasdaq gained 85.83 points, or 1%, to 8,656.53. The Russell 2000 index of smaller company stocks picked up 19 points, or 1.2%, to 1,633.84.

Friday’s batch of encouraging economic data capped what started as a rough week for the market.

Increased trade tensions and disappointing economic reports — including data showing manufacturing continues to shrink, and growth in the service sector is slowing — dragged the market to steep losses on Monday and Tuesday.

The latest employment report and consumer sentiment data are a welcome development as steady job growth has been one of the bright spots in the economy, along with solid consumer spending.

Investors also got some encouraging news on the U.S.-China trade front, with Beijing saying Friday that it is waiving punitive tariffs on U.S. soybeans and pork as negotiations for a trade deal continue.

ENERGY:

Benchmark crude oil

It rose 77 cents to $59.20 a barrel on Friday.

Brent crude oil, the international standard, gained $1 to close at $64.39 a barrel.

CURRENCIES:

The dollar fell to 108.59 Japanese yen from 108.69 yen on Friday. The euro weakened to $1.1055 from $1.1107.

source: business.inquirer.net

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

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 mixed as investors look ahead to rate decisions

TOKYO – Asian shares were mixed Tuesday after a day of listless trading on Wall Street, as investors awaited signs on global interest rates.

Japan’s benchmark Nikkei 225 added 0.2% to 21,360.15 in morning trading.

Australia’s S&P/ASX 200 fell 0.5% to 6,618.20, while South Korea’s Kospi inched up 0.1% to 2,021.73.

Hong Kong’s Hang Seng was up nearly 0.1% at 26,703.44, while the Shanghai Composite lost 0.4% to 3,012.03.

On Wall Street, the S&P 500 ended virtually flat as losses in technology and health care stocks outweighed gains in financials and other sectors. The Russell 2000 index of smaller company stocks, which has lagged the S&P 500 this year, outpaced the rest of the market.

Investors are taking a shine to smaller company stocks in hopes that they’ll be better shielded from the fallout of the costly trade war between the U.S. and China than large multinationals.


The S&P 500 inched 0.28 points lower, or less than 0.1%, to 2,978.43. The index, which has finished higher the past two weeks, is within 1.6% of its all-time high set in late July. The Dow Jones Industrial Average rose 38.05 points, or 0.1%, to 26,835.51. The Nasdaq fell 15.64 points, or 0.2%, to 8,087.44. The Russell 2000 climbed 19.06 points, or 1.3%, to 1,524.23.

The broader market has bounced back the past two weeks following volatility brought on by the trade war as Washington and Beijing imposed new tariffs on more of each other’s imported goods. Investors worry the escalation of tariffs may be dampening global economic growth and threatening to nudge the United States into a recession.

Traders are hoping for a deal between the world’s two largest economies and were encouraged last week by news that talks will resume in October.

A mixed bag of economic data has also kept Wall Street focused on central banks and whether they will continue taking measures to shore up economic growth. On Friday, Federal Reserve Chairman Jerome Powell said the central bank doesn’t expect a recession and will take necessary actions to maintain growth.

Economists expect the Fed to cut interest rates when it meets next week.


Separately, the European Central Bank is expected to unveil new monetary stimulus measures on Thursday to help shore up the region’s economy.

“Markets look to be adrift ahead of the slew of events this week including the likes of the European Central Bank where further support for the markets is expected,” said Jingyi Pan, market strategist at IG in Singapore.

“As far as the risk sentiment is concerned, the improvement carries forth from the previous week in anticipation of the various central bank meetings.”

ENERGY:

Benchmark crude oil rose 42 cents to $58.27 a barrel. It rose $1.33 to $57.85 a barrel Monday. Brent crude oil, the international standard, gained 46 cents to $63.05 a barrel.

CURRENCIES:

The dollar rose to 107.39 Japanese yen from 106.96 yen on Monday. The euro strengthened to $1.1046 from $1.1037. /gsg

source: business.inquirer.net

Asian shares tumble as US-China trade war renews uncertainty

TOKYO – Asian shares tumbled Monday after the latest escalation in the U.S.-China trade war renewed uncertainties about global economies, as well as questions over what President Donald Trump might say next.

Japan’s benchmark Nikkei 225 started plummeting as soon as trading began and stood at 20,234.87 in the morning session, down 2.3%.

Australia’s S&P/ASX 200 slipped 1.5% to 6,427.20. South Korea’s Kospi lost 1.7% to 1,916.14.

Hong Kong’s Hang Seng dropped 3.3% to 25,309.37, while the Shanghai Composite was down 1.2% at 2,862.87.


Stephen Innes, managing partner at Valour Markets in Singapore, compared the difficulty of assessing the volatile market situation to reading tea leaves.

“Nobody understands where the president is coming from,” he said, adding that the best thing Trump can do for market stability is to “keep quiet.”


“The problem that we’re faced right now is that we are making a lot of assumptions ahead of the economic realities.”

The market is now dominated by fears of a portending U.S. recession, although the American economy is actually holding up, and much of the U.S. economy is made up of consumption, Innes said. If interest rates come down, he added, consumer spending is likely to go up, working as a buffer for the economy.

“What the market’s really waiting for is for them to drop interest rates,” Innes said. “Right now, we are still sitting on that uncertainty.”

The Dow Jones Industrial Average plunged more than 600 points Friday after the latest escalation in the trade war between the U.S. and China rattled investors. The broad sell-off sent the S&P 500 to its fourth straight weekly loss.

The tumbling began after Trump responded angrily on Twitter following China’s announcement of new tariffs on $75 billion in U.S. goods. In one of his tweets he “hereby ordered” U.S. companies with operations in China to consider moving them to other countries — including the U.S.


Trump also said he’d respond directly to the tariffs — and after the market closed he delivered, announcing that the U.S. would increase existing tariffs on $250 billion in Chinese goods to 30% from 25%, and that new tariffs on another $300 billion of imports would be 15% instead of 10%. Those announcements are likely to influence stock markets in Asia when trading opens there Monday.

The ongoing trade dispute between Washington and Beijing, and especially its unpredictability, is certain to have damaging effects on Asia. The unpredictability affects the real decisions central banks make on fiscal policy and companies make on their strategies and investments, setting off ripples of uncertainty.

Zhu Huani of Mizuho Bank in Singapore said what he called Trump’s “tariff tantrum” was setting off “the sense that tariffs could continue to rise,” with the “the unpredictability of timing and extent of these trade actions risk accentuating the paralysis of business decisions and big-ticket business spending.”

The S&P 500 fell 75.84 points, or 2.6%, to 2,847.11. The index is now down 4.5% for the month. It’s still up 13.6% for the year. The Dow lost 623.34 points, or 2.4%, to 25,628.90. The average briefly dropped 745 points. The Dow has had five declines of 2% or more this year, with three of them coming this month. The Nasdaq gave up 239.62 points, or 3%, to 7,751.77. The Russell 2000 index of smaller company stocks skidded 46.52 points, or 3.1%, to 1,459.49.

Trump also said Friday morning that he was “ordering” UPS, Federal Express and Amazon to block any deliveries from China of the powerful opioid drug fentanyl. The stocks of all three companies fell as traders tried to assess the possible implications.

The price of benchmark crude fell 71 cents to $53.46 a barrel. It sank $1.18, or 2.1% to settle at $54.17 a barrel Friday, as traders worried that the latest escalation in the trade battle could sap global demand for energy. Brent crude oil, the international standard, fell 63 cents to $58.71 a barrel.

The dollar fell to 105.24 Japanese yen from 106.65 yen Friday. The euro strengthened to $1.1145 from $1.1057. /gsg

source: business.inquirer.net

Asian stocks follow Wall Street lower on trade war fears

BEIJING – Asian stock markets on Thursday followed Wall Street lower after President Donald Trump reignited trade fears by saying he could impose more tariffs on Chinese imports.

Benchmarks in Shanghai, Tokyo, Hong Kong and Sydney all declined. Oil rebounded from the previous day’s losses.

Trump alarmed investors by saying he had $325 billion of Chinese imports available for additional tariffs “if we want.” That shook markets that had been reassured by Trump’s agreement with Chinese President Xi Jinping in June to hold off on new trade penalties while they resume negotiations.

The Chinese government warned tariff hikes would “create a new obstacle” in talks on ending their bruising fight over Beijing’s technology ambitions.

Trump’s comment “cast a dark cloud over lingering concerns on trade talk progress,” said Mizuho bank analysts in a report.

The Shanghai Composite Index lost 0.6% to 2,913.49 and Tokyo’s Nikkei 225 tumbled 1.6% to 21,128.12. Hong Kong’s Hang Seng retreated 0.4% to 28,465.17 and Seoul’s Kospi was 0.2% lower at 2,066.94.


Sydney’s S&P-ASX 200 shed 0.3% to 6,655.60 and Taiwan and Southeast Asian markets also retreated. New Zealand gained.

On Wall Street, stocks extended their losses into a second day as railroad operator CSX had its biggest drop in 11 years, pulling other industrial companies down with it. CSX plunged 10.3% after saying it expects this year’s revenue to decline as much as 2%, after previously saying it expected growth.

Banks fell as investors worried lower interest rates will hurt profits. Investors expect the Federal Reserve to cut interest rates for the first time in a decade at their next policy meeting in two weeks.

Corporate earnings reports are getting into full swing this week, and investors have been mostly cautious in their assessments of them. Earnings are still expected to decline for S&P 500 companies in the second quarter.

ENERGY: Benchmark U.S. crude gained 1 cent to $56.79 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 84 cents on Wednesday to close at $56.78. Brent crude, used to price international oils, advanced 17 cents to $63.83 in London. It lost 69 cents the previous session to $63.66.

CURRENCY: The dollar declined to 107.73 yen from Wednesday’s 107.97 yen. The euro gained to $1.1239 from $1.1226./gsg

source: business.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

Asian stocks recover after news of US-China trade talk

Asia stocks opened sharply lower on Thursday, joining a global sell-off on concerns over Turkey’s financial crisis but later pared losses on news that China and the US would hold trade talks.

Equities across the region suffered steep losses at the opening bell, with Tokyo and Shanghai off by more than one percent, dragged down by a weak session on Wall Street as traders fretted over possible contagion from Turkey’s currency crisis.

Japan’s main Nikkei 225 index shed 1.20 percent in early trade and China’s benchmark Shanghai Composite was off by 1.17 percent after another day of volatile trading driven by Turkey.


On Wednesday, Ankara hiked tariffs on imports of several US goods in retaliation for American sanctions, the latest step in a tit-for-tat spat between the two NATO allies that shows little sign of easing.

The crisis has sent the Turkish currency into free-fall and sparked concerns that European banks and other emerging markets exposed to the unit could also suffer.

A bearish mood saw European markets close down nearly two percent and the broad US S&P 500 market off by nearly one percent.

However, the lira managed to claw back some ground after losing just under a quarter of its value on Friday and Monday, a loss that had prompted fears of a fully-fledged economic crisis in the critical emerging economy.

And equities in Asia staged a fightback after news hit the wires of upcoming talks between the US and China, currently embroiled in a trade spat that economists warn could harm the global economy.

China’s Vice Commerce Minister Wang Shouwen, the deputy representative on international trade negotiations, will meet with a senior US treasury official, David Malpass, at the invitation of the United States, the ministry in Beijing said in a statement.

Traders saw a glimmer of hope of a detente in the ongoing trade battle that has seen the two sides hit each other with reciprocal tariffs on goods worth $34 billion, with much more threatened.

The two countries plan to launch a new round of tariffs on $16 billion worth of goods from each country on August 23.



“It is hard to tell how the talks will go but it’s a positive signal that the two countries are looking for some compromise plan,” said Makoto Sengoku, market analyst at Tokai Tokyo Research Institute.

“If they were determined to fight it out, they wouldn’t meet,” he told AFP.

A few hours into the trading session, the Nikkei was back in positive territory while markets in China and Hong Kong had almost erased all of their losses.

Key figures around 0300 GMT 

Dollar/Turkish lira: STABLE at 5.98 lira

Euro/dollar: UP at $1.1381 from $1.1349

Pound/dollar: UP at $1.2720 from $1.2700

Dollar/yen: UP at 110.86 from 110.73 yen

Tokyo – Nikkei 225: UP 0.01 percent at 22,206.66

Hong Kong – Hang Seng: DOWN 0.1 percent at 27,290.26

Shanghai – Composite: DOWN 0.2 percent at 2,716.31

Oil – Brent Crude: UP 45 cents at $71.21 per barrel

Oil – West Texas Intermediate: UP 14 cents at $65.15 per barrel

New York – Dow Jones: DOWN 0.5 percent at 25,162.41 (close)

London – FTSE 100: DOWN 1.5 percent at 7,497.87 (close)

/vvp

source: business.inquirer.net

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

Spotify aims to strike chord in stock market debut

Spotify on Tuesday debuts as a publicly traded company, hoping that its streaming music model will be a hit with investors and a boon to artists.

In an unusual move, Spotify will list existing shares directly on the New York Stock Exchange rather than issuing new stock, allowing its founders and investors to maintain control and avoiding the cost of hiring Wall Street underwriters.

“Spotify is not raising capital, and our shareholders and employees have been free to buy and sell our stock for years,” 35-year-old chief executive and co-founder Daniel Ek said in a blog post Monday ahead of the listing of “SPOT” shares.

Ek said the move “puts us on a bigger stage,” but “doesn’t change who we are, what we are about, or how we operate.”

The Swedish platform which has helped make streaming the most popular way to listen to music in parts of the world estimated the company’s value to be as much as $23.4 billion.

Spotify said in a regulatory filing that it had 159 million monthly users including 71 million paying subscribers — twice that of closest rival Apple Music, which the iPhone maker launched in 2015 to win a slice of the growing streaming market.

Spotify warned last week that its sales growth was likely to slow this year, but that it still expected to post a narrower annual loss.

Spotify, which has not posted a profit since the service launched in 2008, said unfavorable exchange rates were the main reason for the growth slowdown.

The company also said it aimed to boost its subscriber numbers by 30 to 36 percent this year.

Cool and sticky

“Spotify is a ‘cool’ brand,” said eMarketer principal analyst Paul Verna.


“Teenagers especially love Spotify. This bodes well for continued brand loyalty, which is a big factor in the stickiness of music services.”

Users of streaming music services don’t like to rebuild playlists or profiles, making it likely they will stick with Spotify if given good value, according to the analyst.

While pressure is on to pay higher royalties to music creators, Spotify has made inroads with artists. Taylor Swift released a new “Delicate” music video on Spotify last month. The singer caused a stir in 2014 by pulling her music from the service over fees, but returned to the platform three years later.

Music sales soared anew last year in the United States backed by the rise of streaming, bringing revenue to a level last seen a decade ago.

“Spotify has been the driving force in nothing less than a turnaround in the US recorded music industry,” Verna said.

Spotify’s model of letting people stream songs on demand is proving more popular than paid downloads, curated playlists, or internet radio broadcasting, according to the analyst.

The Recording Industry Association of America said that revenue grew a robust 16.5 percent in 2017, marking the first time since 1999 at the dawn of online music that the business has expanded for two years in a row.

The growth was almost entirely attributable to the public’s embrace of streaming, with subscriptions to paid platforms such as Spotify, Apple Music, Tidal and the new service of retail giant Amazon growing 56 percent to 35.3 million users.

Streaming has been transforming the music business in much of the world, although artists frequently complain that they see little of the industry’s newfound bounty.

Timing trouble?

In 2006, Ek and co-founder Martin Lorentzon, who rode the internet boom to riches, came up with the idea of creating a legal platform to distribute music online, which at the time was dominated by illegal file sharing sites.

They experimented with sharing music files between the hard drives on their computers.

In October 2008 Spotify was finally ready to go live after Ek pleaded with music labels to open their catalogs.

Wall Street could go far in securing the Swedish startup’s status as a success story if the listing goes well.

But, the timing could hurt Spotify since tech stocks overall are being dragged down by worries about \privacy and Facebook’s handling of people’s data.

“Spotify will be lumped in with other tech stocks, which have been battered lately because of Facebook’s data privacy issues,” Verna said.

“One could argue that this is unfair to Spotify, but they’re going to have to get used to market volatility and getting dragged down (or pushed up) by other companies in their general space.”

In perhaps a poetic turn, Facebook has been credited with playing into Spotify’s success.

In 2009, Spotify won the public backing of Facebook co-founder and chief Mark Zuckerberg, who posted: “Spotify is so good.”

In 2011, when Spotify launched service started in the United States, it allied with Facebook, quickly garnering one million paying users. MKH

source: technology.inquirer.net

US stocks swoon, sending Dow down more than 650 points

U.S. stocks slumped Friday, and the market suffered its worst week in two years, as fears of inflation and disappointing quarterly results from technology and energy giants spooked investors. The Dow Jones industrial average dropped by more than 650 points.

Bond yields rose and contributed to the stock market swoon after the government reported that wages grew last month at the fastest pace in eight years. The Dow had its worst decline since June 2016, while the broader Standard & Poor’s 500 index had its biggest one-day percentage drop since September 2016.

“We’ve enjoyed low interest rates for so long, we’re having to deal with a little bit higher rates now, so the market is trying to figure out what that could mean for inflation,” said Darrell Cronk, head of the Wells Fargo Investment Institute.

The increase in bond yields hurts stocks in two ways: it makes it more expensive for companies to borrow money, and it also makes bonds more appealing to investors than riskier assets such as stocks.

Several major companies, including Exxon Mobil and Google’s parent company, Alphabet, sank after reporting weak earnings. Apple fell on concerns about iPhone sales.

The sharp decline in stocks this week short-circuited a robust start to the year that was spurred by strong global economic growth, solid company earnings and lingering enthusiasm for the GOP tax overhaul. Even with the pullback, the major indexes are still up more than 3 percent this year.

The downturn also follows a long period of unprecedented calm in the market. Stocks haven’t had a pullback of 10 percent or more in two years, and hit their latest record highs just one week ago.

The S&P 500 fell 59.85 points, or 2.1 percent, to 2,762.13. The index has lost 3.9 percent since hitting a record high a week ago.

The Dow lost 665.75 points, or 2.5 percent, to 25,520.96. The Nasdaq slid 144.92 points, or 2 percent, to 7,240.95. The Russell 2000 index of smaller-company stocks gave up 32.59 points, or 2.1 percent, to 1,547.27.

While interest rates are still low by historical standards, meaning borrowing is still relatively cheap for businesses and people, they’ve been rising more swiftly, and that’s what has markets on edge.

“The pace of rate increases is more important than the level,” said Nate Thooft, senior portfolio manager at Manulife Asset Management.

The increase in rates has been driven by the prospect of stronger economic growth, and higher inflation, in the U.S. and abroad.

Bond prices declined again Friday, pushing yields higher. The yield on the 10-year Treasury note, a benchmark for interest rates on many kinds of loans, including mortgages, climbed to 2.84 percent, the highest level in roughly four years. The rate was at 2.41 percent four weeks ago and 2.66 percent on Monday.

“Once we started going north of 2.5 percent, and you put that together with an overbought market, it had the ingredients of a sell-off, especially since January was so strong,” said Jeff Zipper, regional investment strategist at U.S. Bank Private Wealth Management.

The S&P 500, which many index funds track, soared 5.6 percent in January, its biggest monthly gain since March 2016.

One concern for investors is that the Federal Reserve will respond to higher inflation by raising its key interest rate more quickly than expected. The government’s latest job and wage data stoked those concerns Friday.

U.S. employers added a robust 200,000 jobs in January, slightly above market expectations for an 185,000 increase. Meanwhile wages rose sharply, suggesting employers are competing more fiercely for workers. The figures point to an economy on strong footing even in its ninth year of expansion, fueled by global economic growth and healthy consumer spending at home.

That’s good news for Main Street USA, but not for Wall Street. Some economists were predicting Friday that the central bank will raise its benchmark rate four times this year, rather than the three times most previously expected.

The market slide may have been overdue, particularly after the strong start for stocks this year where the S&P 500 had its best January in two decades. Some investors saw a potential buying opportunity.

The global economy is still strong, corporate profits and sales have been better than expected this reporting season and buyers for stocks still remain, all reasons to be optimistic about stocks, said Nate Thooft, senior portfolio manager at Manulife Asset Management.

“It’s appealing, these 2 to 3 percent pullbacks,” said Thooft, who had been trimming some of his stock holdings after the market’s big January gains. “We look at this and say, ‘Maybe it’s your first day to buy a little bit.'”

While earnings overall have been strong, some big companies have posted disappointing results.

Google’s parent company Alphabet slumped 5.3 percent after the search giant reported results that missed analysts’ forecasts. The stock slid $62.39 to $1,119.20.

Exxon Mobil dropped 5.1 percent, while Chevron lost 5.6 percent after the oil companies’ latest quarterly results fell short of forecasts. Shares in Exxon shed $4.54 to $84.53. Chevron gave up $6.99 to $118.58.

Apple declined 4.3 percent after the technology company said it sold 77.3 million iPhones in the last quarter, below the 80 million analysts expected. The stock slid $7.28 to $160.50.

Traders welcomed Amazon’s latest results. The e-commerce giant rose 2.9 percent after its fourth-quarter profit increased by more than $1 billion. Amazon shares gained $39.95 to $1,429.95.

Oil futures declined. Benchmark U.S. crude slid 35 cents, or 0.5 percent, to settle at $65.45 a barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, fell $1.07, or 1.5 percent, to close at $68.58 a barrel in London.

Wholesale gasoline fell 2 cents to $1.87 a gallon and heating oil fell 4 cents to $2.05 a gallon. Natural gas slipped 1 cent to $2.85 per 1,000 cubic feet.

Gold fell $10.60 to $1,337.30 an ounce. Silver dropped 45 cents to $16.71 an ounce. Copper lost 2 cents to $3.19 a pound.

The dollar rose to 110.28 yen from 109.42 yen on Thursday. The euro weakened to $1.2451 from $1.2502.

Major stock indexes in Europe also declined Friday. Germany’s DAX slid 1.7 percent, while France’s CAC 40 lost 1.6 percent. The FTSE 100 index of leading British shares gave up 0.6 percent.

In Asia, Japan’s benchmark Nikkei 225 fell 0.9 percent and South Korea’s Kospi slid 1.7 percent. Hong Kong’s Hang Seng index dipped 0.1 percent.

source: business.inquirer.net

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 edges up, shaking off healthcare, North Korea worries

NEW YORK - The S&P 500 closed slightly higher on Friday even though Apple was a drag, as worries about Washington's latest healthcare legislation proposal eased and investors shrugged off concerns about North Korea.

Investors in the broader market were also encouraged by a jump in the Russell 2000 small-cap index, which ended with a record high close.

After a volatile day the S&P's healthcare sector ended 0.1 percent higher as insurance stocks regained ground after Republican Senator John McCain said he opposed his Republican peers' latest effort to replace President Barack Obama's healthcare law.

The S&P technology sector managed to eke out a small gain as investors had more appetite for risk even with a decline of 1 percent in Apple shares on muted reactions to the iPhone maker's latest product launch.

"The removal of the healthcare overhang, the fact the North Korea market impact is dwindling and the move in the Russell 2000 has all the smart investors thinking that the grind higher continues," said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.

The Dow Jones Industrial Average fell 9.64 points, or 0.04 percent, to 22,349.59, the S&P 500 gained 1.62 points, or 0.06 percent, to 2,502.22 and the Nasdaq Composite added 4.23 points, or 0.07 percent, to 6,426.92.

Some investors moved to safe-haven assets such as gold, after North Korea said it might test a hydrogen bomb over the Pacific Ocean in response to U.S. President Donald Trump's threat to destroy the reclusive country.

But others felt that the market would cope with the ongoing stand-off between the countries, which has been ratcheting up in recent months. "If you cry wolf enough it loses its impact in the end," Antonelli said.

Five of the 11 major S&P sectors ended the day lower and utilities led the decliners with a 0.7 percent loss. After falling as much as 0.5 percent, the healthcare sector ended 0.08 percent higher.

Earlier in the day concern about the Graham-Cassidy healthcare bill had wreaked havoc with insurers' stocks. UnitedHealth closed down 1.1 percent after falling as much as 3.6 percent earlier in the day.

The small telecom services index, with only four stocks, was the biggest percentage gainer with a 1.4 percent rise on consolidation speculation while the energy index rose 0.5 percent as oil futures settled higher.

T-Mobile gained 1 percent after Reuters reported that the cellphone network operator was close to agreeing tentative terms on a deal to merge with Sprint, whose shares jumped 6.1 percent.

The report also pushed up bigger rivals Verizon Communications and AT&T Inc, which could benefit from having one less competitor.

Advancing issues outnumbered declining ones on the NYSE by a 1.82-to-1 ratio; on Nasdaq, a 1.91-to-1 ratio favored advancers.

About 5.26 billion shares changed hands on U.S. exchanges compared with the 6.03 billion average for the last 20 sessions. — 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

Wall Street clings to records, helped by banks; tech falters

The S&P 500 ended slightly higher on Monday as financial stocks rose ahead of a Federal Reserve meeting, but the Nasdaq pared gains sharply as technology stocks lost ground late in the session.

Five of the 11 major S&P sectors ended lower. Rising U.S. Treasury yields boosted financial stocks, as higher interest rates tend to lift bank profits, but rate-sensitive sectors such as utilities were the weakest.

The Fed meeting, which starts Tuesday, is expected to yield details on how the central bank will unwind its $4.2 trillion portfolio of Treasuries and mortgage-backed securities, nearly a decade after the global financial crisis.

After pushing the S&P above its 2,500-point milestone last week, investors were holding their fire as they awaited more clues on the timing of the next rate hike from Fed Chair Janet Yellen.

"You just had that little momentum spurt after it went through 2,500 but it is kind of running out of steam and is going to bide its time until Wednesday, when they listen to Janet" said Ken Polcari, director of the NYSE floor division at O’Neil Securities in New York.

However, the Dow still clocked a closing record for the fifth day in a row while the S&P had a closing record for the second consecutive session.

"There's momentum in the market. There's lots of cash. Even though the Fed's about to reduce their balance sheet, you continue to have incredibly aggressive monetary policy. That continues to lead to money flowing into the market almost in an indiscriminate fashion," said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco.

The Dow Jones Industrial Average rose 63.01 points, or 0.28 percent, to 22,331.35, the S&P 500 gained 3.64 points, or 0.15 percent, to 2,503.87 and the Nasdaq Composite added 6.17 points, or 0.1 percent, to 6,454.64.

Big technology stocks such as Microsoft and Google parent Alphabet came under pressure late in the session after Amazon said it would move to charging businesses in one-second increments for use of its servers.

"That competes with Google and Microsoft, and it's going to weigh on the entire tech space" because of price competition, said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.

Microsoft shares ended down 0.2 percent while Alphabet was off 0.6 percent, with both stocks seeing a pickup in volume late in the day.

Advancing issues outnumbered declining ones on the NYSE by a 1.36-to-1 ratio; on Nasdaq, a 1.55-to-1 ratio favored advancers.

About 5.97 billion shares changed hands on U.S. exchanges on Monday, compared with the 5.91 billion average for the last 20 sessions. — Reuters