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

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

Wall Street retreats from record as industrials, tech lag

NEW YORK - U.S. stocks declined on Monday as each of the major Wall Street indexes retreated from a record, weighed down by a drop in technology and industrial shares.

General Electric, down 6.3 percent, suffered its biggest one-day percentage decline in more than six years after a host of brokerages cut their price targets on the stock, citing higher chances of a dividend cut at the industrial conglomerate.

After holding near the unchanged mark for most of the session, losses accelerated late in the session on downturn in technology, off 0.40 percent.

Last week, the Dow and S&P managed to close at a record high all five days, after a strong start to third-quarter earnings and on hopes President Donald Trump's tax plans move forward after the Senate's approval of a budget resolution on Friday.

"On the one hand, the market is very extended, overbought, on the other hand so far earnings have come through," said Andrew Slimmon, portfolio manager at Morgan Stanley Investment Management in Chicago.

"The question becomes what happens if tax reform doesn’t happen in 2017, does the market sell off into the year-end?"

Investors are also waiting for news on the next Federal Reserve chief. Trump told reporters on Monday he is "very, very close" to making his decision on who should chair the Fed.

Of the 97 S&P 500 companies that have reported earnings so far, 73.2 percent have topped expectations, according to Thomson Reuters data, versus the 72-percent average for the past four quarters.

The Dow Jones Industrial Average fell 54.25 points, or 0.23 percent, to 23,274.38, the S&P 500 lost 10.19 points, or 0.40 percent, to 2,565.02 and the Nasdaq Composite dropped 42.23 points, or 0.64 percent, to 6,586.83.

Industrials, were off 0.8 percent as one of the biggest drags to the S&P of the 11 major sectors. Aside from GE, the group was also pulled lower by a 10.4-percent tumble in Arconic after the specialty metals maker missed profit estimates and announced a new chief executive.

The energy index stumbled 0.59 percent, driven by losses in Schlumberger, Baker Hughes and Halliburton, which reported results on Monday.

Hasbro plunged 8.6 percent after the toymaker's forecast for the holiday season fell below estimates as Toys'R'Us bankruptcy began to hurt its operations. Shares of peer Mattel fell 3.2 percent.

The S&P 500 posted 91 new 52-week highs and 6 new lows; the Nasdaq Composite recorded 104 new highs and 41 new lows.

About 5.84 billion shares changed hands in U.S. exchanges, compared with the 5.83 billion daily average over the last 20 sessions. — Reuters

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

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 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

Record-setting stock rally faces test in Trump speech

NEW YORK - US President Donald Trump's planned economic agenda has fanned the flames for Wall Street's record-setting run, but some investors worry that his first major address to Congress next week risks dousing it if his plans look slow to execute or are overly vague.

The benchmark S&P 500 has surged 10 percent since Trump's Nov. 8 election, with optimism running high over the Republican administration's domestic proposals, including plans to reform taxes paid by businesses.

But there have been few specifics so far, and some investors believe Trump may need to provide more than just generalities when he gives his first major presidential address on Tuesday.

"If he comes out next week and there are little or no details other than that it is going to be great, that is going to be a time where we could have the first sort of crack in the armor," said JJ Kinahan, chief market strategist at TD Ameritrade in Chicago.

Trump has said enough so far to help propel major stock indexes to all-time highs. The Dow Jones Industrial Average this week marked its longest run of consecutive record-high closing prices in 30 years.

With stock valuations expensive, many market participants are bracing for a pullback. The S&P 500 is trading at nearly 18 times forward earnings estimates versus the long-term average of 15 times, according to Thomson Reuters data.

In Tuesday's speech, "the market wants to hear about concrete tax reform plans that have traction either across the Republican base or have the potential to reach across to moderate Democrats," said Alan Gayle, director of asset allocation with RidgeWorth Investments in Atlanta.

"If the market begins to doubt Trump’s ability to follow through on his promises, then I would think that we would see a 5 percent market correction fairly easily," Gayle said.

Investors are also watching for hints about timing of Trump's economic plans. US Treasury Secretary Steven Mnuchin on Thursday laid out an ambitious schedule to enact tax relief by August.

"The one thing that could stall this rally would be any sort of indication that we won’t see the bulk of the effects this year," said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland. "I think that would take some of the air out of the enthusiasm."

Investors will also be listening for comments about the border adjustment tax being pushed by Congressional Republicans, about which Trump spoke positively in a Reuters interview on Thursday after having previously sent mixed signals.

Ahead of Trump's address, the stock options market was not yet foreseeing a huge reaction to the speech, bracing for a move of 0.9 percent in either direction by Wednesday's close, according to pricing on at-the-money straddles on S&P 500 index options.

Investors appeared to show comfort wading into the stock market, according to Lipper data released on Thursday, with US-based stock funds attracting $2.7 billion in the latest weekly period, their fourth consecutive week of inflows.

However, one high-profile investor, Jeffrey Ubben of activist investor ValueAct Capital, told Reuters on Wednesday that his firm had been taking money out of the capital markets as valuations have become overextended.

Beyond tax reform, investors will be eager to learn more about Trump's plans for repealing the Affordable Care Act, reducing regulations on businesses and increasing infrastructure spending.

Just this week, shares of engineering and construction companies gave up some of their post-election gains on concerns Trump's infrastructure package would be put off until next year.

But while some investors are eager for policy specifics, the bigger picture is the change in the White House, said Bruce Bittles, chief investment strategist at Robert W. Baird & Co in Sarasota, Florida.

"This whole rally in the stock market is based on the premise that we have moved to a pro-business administration in Washington, D.C. from an anti-business administration," he said. "The details, I think, are just noise." — Reuters

source: gmanetwork.com

Markets Right Now: Stocks open higher on Wall Street

NEW YORK — The latest on developments in U.S. financial markets: 9:35 a.m.

Stocks are edging higher in early trading on Wall Street as investors applaud some strong earnings reports from big U.S. companies.

Agricultural giant Archer-Daniels-Midland jumped 5.5 percent in the first few minutes of trading Tuesday, the biggest gain in the Standard & Poor’s 500 index, after reporting earnings that easily beat analysts’ estimates.

Coach, which makes luxury handbags and other accessories, rose 3.5 percent after its own results also came in ahead of forecasts.

The Dow Jones industrial average rose 11 points, or 0.1 percent, to 18,153. The S&P 500 index climbed 2 points, or 0.1 percent, to 2,128. The Nasdaq composite increased 9 points, or 0.2 percent, to 5,198. TVJ

source: business.inquirer.net

Stocks down slightly after 5-day winning streak

NEW YORK — Stocks are falling slightly in morning trading Friday as the market breaks a five-day winning streak that sent major indexes to fresh highs. Bond yields climbed. Technology and consumer discretionary stocks are dropping the most.

KEEPING SCORE: The Dow Jones industrial average fell 2 points, or less than 0.1 percent, to 18,504 at 11:32 a.m. Eastern time. The Standard & Poor’s 500 index lost 3 points, or 0.2 percent, to 2,161. The Nasdaq composite fell 6 points, or 0.1 percent, to 5,028.

THE QUOTE: After the recent gains, “you have to be concerned. Are we going to see more slowing of the global economy?” said Bill Stone, chief investment officer at PNC Asset Management. “What is going to be the real impact of Brexit?”

SUPPLEMENT SURGE: Herbalife rose $9.21, or nearly 16 percent, to $68.57 after The Federal Trade Commission decided not to classify the nutritional supplements company as a pyramid scheme, as was alleged by investor Bill Ackman. The company did agreed, however, to pay $200 million to resolve allegations that it deceived consumers.

BANK BLUES: Wells Fargo fell $1.21, or 2.5 percent, to $47.73 after the consumer banking giant reported that second-quarter earnings fell.

INFLATION CHECK: The Labor Department reported consumer prices rose a modest 1 percent in June from a year ago, well below the Federal Reserve’s 2 percent inflation target. The Fed, which meets July 26-27, wants to see evidence that inflation is ticking up before raising interest rates.

SHOPPING MORE: The Commerce Department reported that U.S. retail sales rose a robust 2.7 percent in June from a year earlier. Consumer spending accounts for about two-third of economic output in the U.S., much higher than in many other developed countries.

ATTACK IN FRANCE: Trading was subdued in Europe after a man drove a truck into crowds celebrating Bastille Day along the beachfront of Nice, killing at least 84 people.

EUROPE SLIPS: France’s CAC-40 was down 0.6 percent while Germany’s DAX fell 0.2 percent. Britain’s FTSE 100 was flat.

TRAVEL SLUMP: Travel-related stocks fell in the wake of the attack. Cruise operator Royal Caribbean fell $1.26, or 1.8 percent, to $70.63 and Delta Air Lines fell 97 cents, or 2.4 percent, to $40.01.

CHINA GROWTH: The Chinese government says its economy expanded at a steady 6.7 percent in the April-June period as spending on construction by state-owned companies in the world’s second-largest economy helped compensate for weak private sector demand.

ASIA’S DAY: Japan’s Nikkei 225 rose 0.7 percent. The Hang Seng index in Hong Kong climbed 0.5 percent and South Korea’s Kospi index added 0.4 percent.

BONDS AND CURRENCIES: Bond prices fell. The yield on the 10-year Treasury note rose to 1.59 percent from 1.54 percent. The euro fell to $1.1076 from $1.1123 and the dollar rose to 105.93 yen from 105.43 yen.

ENERGY: Benchmark U.S. crude rose 38 cents to $46.06 a barrel in New York, while Brent crude, a standard for international oil prices, rose 44 cents to $47.81 a barrel in London. TVJ

source: business.inquirer.net

US stocks, dollar slide after weak jobs report

A slide in financial and consumer stocks led U.S. indexes lower in late morning trading Friday as investors weighed the implications of a key government report showing that hiring slowed sharply in May. The downbeat job survey was a sign of economic weakness that could dissuade the Federal Reserve from raising interest rates this month. The dollar fell sharply against most major currencies, while bond prices surged as investors sought safety in U.S. government-backed debt.

KEEPING SCORE: The Dow Jones industrial average fell 92 points, or 0.5 percent, to 17,745 as of 11:20 a.m. Eastern time. The Standard & Poor’s 500 index shed 13 points, or 0.7 percent, to 2,091. The Nasdaq composite index lost 46 points, or 0.9 percent, to 4,925.

US ECONOMY: The Labor Department reported that the U.S. economy added only 38,000 jobs in May, the lowest amount in five years. The unemployment rate fell to 4.7 percent from 5 percent, but mainly because about half a million unemployed people stopped looking for work. Separate reports out Friday also showed a mixed snapshot of the economy. The Institute of Supply Management said U.S. services firms grew in May at the slowest pace in more than two years, while the Commerce Department said orders to U.S. factories rose in April by the largest amount in six months.

THE QUOTE: The jobs report is likely to push the Federal Reserve to hold off raising its key interest rate any time soon, said Terry DuFrene, global investment specialist at J.P. Morgan Private Bank.

“It certainly takes off the table any kind of chance of a rate movement at all in the month of June,” DuFrene said. “Now that’s got to be pushed out until maybe the early fall before there’s any sort of rate movement at all.”

FINANCIALS STUMBLE: Several banks and financial services companies fell amid speculation that the Fed will opt not to raise its benchmark interest rate. Lower interest rates make it harder for banks to make money from loans. ETrade Financial slumped $1.68, or 6 percent, to $26.45, while Charles Schwab lost $1.85, or 6 percent, to $28.99. Citigroup fell $2.38, or 5.1 percent, to $44.59.

GOLD RUSH: Mining companies were among the biggest gainers as the price of gold, silver and copper surged. Newmont Mining gained $2.56, or 7.9 percent, to $34.91, while Freeport-McMoRan added 34 cents, or 3.2 percent, to $11.

NOT SO BAD: Gap rose 3.2 percent a day after the clothing chain operator said sales at established stores declined 6 percent in May, better than the 7 percent drop forecast by financial analysts. The stock added 59 cents to $18.92.

BONDS AND CURRENCIES: U.S. government bond prices rose. The yield on the 10-year Treasury note fell to 1.71 percent from 1.80 late Thursday, a large move. In currency markets, the dollar was among the biggest movers, falling to 106.71 yen from 108.91 the day before. The euro jumped to $1.1335 from $1.1148.

ENERGY: Benchmark U.S. crude oil was down 47 cents, or 1 percent, to $48.78 a barrel in New York. Brent crude, which is used to price international oils, was down 60 cents, or 1.2 percent, at $49.44 a barrel in London.

MARKETS OVERSEAS: In Europe, major stock indexes mostly fell. Germany’s DAX fell 1.2 percent, while France’s CAC 40 lost 1.1 percent. Britain’s FTSE 100 slipped 0.1 percent. Earlier in Asia, Japan’s benchmark Nikkei 225 added 0.5 percent, while South Korea’s Kospi inched up 0.04 percent. Hong Kong’s Hang Seng added 0.4 percent. The S&P/ASX 200 of Australia jumped 0.8 percent.

source: business.inquirer.net

Wall St advances as Nasdaq touches 5,000 mark

NEW YORK - U.S. stocks advanced on Monday to push the Nasdaq above the 5,000 mark for the first time in fifteen years, as a round of mixed data pointed to a slowly accelerating economy.

The Nasdaq hit a high of 5,000.33 before retreating, the first time above that level since March 27, 2000, at the height of the dot.com bubble.

"Five thousand on the Nasdaq, it's been a long time coming," said Peter Kenny, chief market strategist at Clearpool Group in New York.

"Now that data point, or psychological barrier, has been breached, investors are going to look at the likelihood we will continue to see the move higher in the Nasdaq and the degree to which the Nasdaq will outperform the broader market."

U.S. consumer spending fell for a second month in January, with lower gasoline prices dampening inflation pressure while personal income fell just short of expectations, showing a rise of 0.3 percent.

Separate gauges of manufacturing were conflicting, as financial data firm Markit's final U.S. Manufacturing Purchasing Managers' Index hit a four-month high while a reading from the Institute for Supply Management fell to its lowest in 13 months.

Construction spending also softened, falling at a 1.1 percent annual rate, below expectations calling for a 0.3 percent increase in January.

The Dow Jones industrial average rose 110.97 points, or 0.61 percent, to 18,243.67, the S&P 500 gained 7.1 points, or 0.34 percent, to 2,111.6 and the Nasdaq Composite added 29.90 points, or 0.6 percent, to 4,993.43.

Chip maker NXP Semiconductors NV has agreed to buy smaller peer Freescale Semiconductor Ltd and merge operations in a deal valuing the combined company at over $40 billion. NXP shares jumped 16.5 percent to $98.90 while Freescale advanced 10.9 percent to $40.05.

Lumber Liquidators plunged 23.5 percent to $39.67 after a report by television news program "60 Minutes" said the retailer of hardwood flooring in North America sold flooring with higher levels of formaldehyde than permitted under California's health and safety standards.

Boston Scientific Corp said it will acquire Endo International Plc's American Medical Systems urology portfolio for up to $1.65 billion. Boston Scientific rose 1.6 percent while Endo gained 2.2 percent to $87.50.

Cardinal Health said it would buy Johnson & Johnson's Cordis vascular technology unit for $1.9 billion and the acquisition would boost 2017 earnings by 20 cents per share. Cardinal Health gained 1.4 percent to $89.26 and JNJ added 0.6 percent to $103.15.

Advancing issues outnumbered declining ones on the NYSE by 1,747 to 1,198, for a 1.46-to-1 ratio; on the Nasdaq, 1,750 issues rose and 847 fell, for a 2.07-to-1 ratio favoring advancers.

The S&P 500 posted 42 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 109 new highs and 18 new lows. — Reuters

Wall St. ends sharply higher on tech, Ukraine deal

NEW YORK - US stocks ended sharply higher on Thursday, with a rally in technology stocks leading the Nasdaq to a 15-year high, while a ceasefire agreement between Russia and Ukraine also eased tensions.

The day's gains were broad, with eight of the 10 primary S&P 500 sectors rising, and the S&P information technology sector .SPLRCT rose 1.6 percent in its third straight daily advance. Cisco Systems (CSCO.O) climbed 9.4 percent to $29.46 in the network equipment maker's biggest one-day jump since May 2013 after earnings and revenue beat expectations.

TripAdvisor Inc (TRIP.O) soared 22.5 percent to $82.40 a day after revenue topped forecasts. Fellow online travel company Expedia (EXPE.O) jumped 14.5 percent to $89.57. Earlier, Expedia agreed to buy Orbitz Worldwide (OWW.N) for about $1.33 billion.

With 76 percent of the S&P 500 having reported, about 71.4 percent of companies have topped earnings expectations, according to Thomson Reuters data, while 56.8 percent have topped on revenue. That compares to the long-term average of 63 percent for earnings and 61 percent for revenue.

Overseas, leaders of Germany, France, Russia and Ukraine agreed on a deal to end fighting in eastern Ukraine, potentially removing a concern for global investors, although the pact remained fragile. The news contributed to oil prices CLc1 advancing 4.9 percent, which in turn lifted the S&P energy index .SPNY 1.3 percent.

"There’s definitely a feel-good situation leading from the reduction in geopolitical risk, while the rise we're seeing in the energy sector is really helping the overall benchmark," said Michael Mullaney, chief investment officer at Fiduciary Trust Co in Boston.

U.S. economic data was tepid, as initial jobless claims rose more than expected in the latest week, while retail sales barely rebounded in January. In addition, business inventories rose less than expected in December.

The Dow Jones industrial average .DJI rose 110.24 points, or 0.62 percent, to 17,972.38, the S&P 500 .SPX gained 19.95 points, or 0.96 percent, to 2,088.48, and the Nasdaq Composite .IXIC added 56.43 points, or 1.18 percent, to 4,857.61.

The Nasdaq ended at its peak of the session, the highest level for the index since March 2000, while the S&P 500 ended about 0.1 percent below closing record, set on Dec. 29.

Tesla Motors (TSLA.O) dropped 4.7 percent to $202.88 after it missed fourth-quarter sales targets and analysts' profit expectations.

American Express (AXP.N) shares dropped 6.4 percent to $80.48 as the biggest drag on the Dow after it said Costco Wholesale (COST.O) would stop accepting its cards in the United States from next April, after a renewal agreement could not be reached.

NYSE advancers outnumbered decliners 2,403 to 685, for a 3.51-to-1 ratio; on the Nasdaq, 1,931 issues rose and 806 fell, a 2.40-to-1 ratio.

The S&P 500 posted 69 new 52-week highs and no new lows; the Nasdaq Composite recorded 123 new highs and 20 new lows.

About 6.72 billion shares traded on all U.S. platforms, according to BATS exchange data, below the month-to-date average of 7.31 billion.  — Reuters

Wall St. ends down in volatile session; materials a drag

NEW YORK -U.S. stocks ended down slightly in a volatile session on Tuesday, led by a drop in materials and energy shares following further weakness in commodity prices.

The S&P 500 slipped under its 50-day moving average of 2,046 around midday, triggering weakness, while volume also picked up. All three indexes fell from highs of more than 1 percent during the session, with the S&P 500 moving more than 48 points from its high for the day to its low, its widest range since Oct. 15.

Shares of homebuilders .HGX fell 1.5 percent after KB Home (KBH.N) forecast a drop in gross margins for the first quarter. Homebuilder stocks had been up earlier in the session, but KB Home dropped 16.3 percent to $13.87, its biggest percentage fall since 1992. [

Shares of Freeport McMoran Copper & Gold (FCX.N) slid 7.5 percent to $21.04, and were the S&P 500's biggest percentage decliner. The S&P materials index .SPLRCMA fell 1.2 percent and was the S&P 500's worst-performing sector.

Copper prices dropped further below $6,000 per tonne to their weakest level in more than five years, while oil prices tumbled to near six-year lows before recovering.

"We're seeing commodity prices continue to go down, not only in oil but across the board. So it's this fear of lower commodity prices leading to global deflation which is leading this nervousness," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.

The S&P energy index .SPNY was down 0.7 percent, with shares of Exxon Mobil (XOM.N) down 0.4 percent at $90.

The Dow Jones industrial average .DJI fell 27.16 points, or 0.15 percent, to 17,613.68, the S&P 500 .SPX lost 5.23 points, or 0.26 percent, to 2,023.03 and the Nasdaq Composite .IXIC dropped 3.21 points, or 0.07 percent, to 4,661.50.

The losses extended the recent decline to a third day. The S&P 500 is now down 3.2 percent since its Dec. 29 record high, marked by concerns about plunging oil prices, global economic weakness and Greece's potential exit from the euro zone.

A reduction in the amount to hedging in the market as shown by options on the CBOE Volatiity index .VIX suggests some investors may be more exposed to big fluctuations in the stock market, said Joe Bell, senior equity analyst at Schaeffer's Investment Research in Cincinnati. The VIX ended the day up 4.9 percent at 20.56.

Results have begun rolling in for U.S. quarterly earnings, though estimates have fallen sharply in recent months as oil prices sold off.

Goodyear Tire & Rubber (GT.O) stumbled 7.1 percent to $26.05 after the company estimated full-year operating income growth "slightly below" its forecast of 10 to 15 percent.

About 7.8 billion shares changed hands on U.S. exchanges, above the 7.2 billion average for the last five sessions, according to BATS Global Markets.

NYSE decliners outnumbered advancers 1,627 to 1,460, for a 1.11-to-1 ratio; on the Nasdaq, 1,393 issues fell and 1,326 advanced, for a 1.05-to-1 ratio favoring decliners.

The S&P 500 posted 57 new 52-week highs and 21 new lows; the Nasdaq Composite recorded 113 new highs and 105 new lows.  — Reuters

S&P 500, Dow end at record highs, boosted by healthcare

NEW YORK - The Dow and S&P 500 closed at record highs on Tuesday, lifted by further gains in healthcare shares and hopes for a stronger global economy.

The S&P 500 scored its fourth straight day of gains.

Actavis Plc, Gilead Sciences and other biotechs were among the biggest drivers, a day after Allergan agreed to be bought by Actavis. The Nasdaq biotech index rose 2.1 percent.

The S&P health care index added 1.6 percent. Shares of Actavis were up 8.7 percent at $269.60, helped by bullish analyst notes, while Gilead's stock rose 3.3 percent to $103.71 percent.

"A little bit of a risk trade is coming back on, and those are the areas for the M&A," said Uri Landesman, president of Platinum Partners in New York. "It's a very, very good environment to buy growth, so I don't quibble with the notion that there's going to be more M&A."

Among the biggest boosts to the Dow, shares of UnitedHealth were up 1.8 percent at $98.19.

Further supporting stocks, news of a snap election and a delayed tax increase in Japan strengthened hopes for new stimulus, a day after data showed Japan back in recession. In Europe, German analyst and investor sentiment advanced this month for the first time in almost a year.

Benign U.S. inflation data also helped.

The Dow Jones industrial average rose 40.07 points, or 0.23 percent, to 17,687.82, a record high. The S&P 500 gained 10.48 points, or 0.51 percent, to 2,051.8, its biggest one-day move since Nov. 5.

The Nasdaq Composite added 31.44 points, or 0.67 percent, to 4,702.44.

Actavis was the S&P's biggest percentage gainer; the largest decliner was Urban Outfitters, down 6.6 percent at $28.79, following results.

On the Nasdaq 100, the largest gainer was Dish Network, up 3.9 percent to $67.85, while the largest decliner was Staples, down 1.6 percent at $12.76.

Among the most active NYSE stocks were Petrobras, up 0.96 percent at $9.42, and General Electric, up 1.50 percent at $27.01. On the Nasdaq, Apple, up 1.3 percent to $115.47, was among the most active.

About 6.1 billion shares traded on U.S. exchanges, below the 6.4 billion average this month, according to BATS Global Markets.

NYSE advancers outnumbered decliners 1,862 to 1,217, for a 1.53-to-1 ratio; on the Nasdaq, 1,645 issues rose and 1,079 fell for a 1.52-to-1 ratio.

The S&P 500 was posted 77 new 52-week highs and one new lows; the Nasdaq Composite recorded 95 new highs and 56 new lows.  — Reuters

Dow, S&P 500 close at records after midterm vote

NEW YORK - U.S. stocks rose on Wednesday, with both the S&P 500 and Dow advancing to records, after Republicans took control of the Senate, allaying fears of drawn-out runoffs and raising investor hopes for more business- and energy-friendly policies.

A stronger-than-expected report on the labor market also helped lift stocks, but some weak tech sector earnings weighed on the Nasdaq.

The beaten-down energy sector rallied on hopes that a Republican majority could pass legislation that includes approval of oil and gas pipelines and reforms of crude and natural gas export laws. The S&P energy index .SPNY was up 1.8 percent.

"For now, the market generally likes the results. If we had uncertainty around the result, that would have been a cause for concern," said John Canally, chief economic strategist at LPL Financial.

"A little bit less business unfriendliness coming out of Washington is a clear plus," he added, noting that 88 percent of the time, stocks rise in the fourth quarter of midterm election years, regardless of the outcome.

U.S. private employers added 230,000 jobs in October, the most since June, according to the ADP National Employment report. The data could raise hopes for Friday's closely-watched payroll report. On the downside, the pace of growth in the U.S. services sector slowed more than expected in October.

Time Warner Inc (TWX.N) rose 4 percent to $77.99 after it reported revenue growth of 3 percent. Activision Blizzard Inc (ATVI.O) late Tuesday raised its full-year forecast, sending shares up 4.4 percent to $20.83.

The Dow Jones industrial average .DJI rose 100.69 points, or 0.58 percent, to 17,484.53, the S&P 500 .SPX gained 11.47 points, or 0.57 percent, to 2,023.57 and the Nasdaq Composite .IXIC dipped 2.92 points, or 0.06 percent, to 4,620.72.

Weighing on the Nasdaq, TripAdvisor Inc (TRIP.O) dropped 14.1 percent to $71.95, a day after weaker-than-expected earnings. FireEye Inc (FEYE.O) fell 15 percent to $29.12 a day after the cybersecurity company's revenue outlook was largely below expectations.

After the market closed, Tesla Motors shares (TSLA.O) gained 5.2 percent following results.

About 6.4 billion shares changed hands on U.S. exchanges, below the 7.3 billion average for the last five sessions.

NYSE advancing issues outnumbered decliners 1,799 to 1,258, for a 1.43-to-1 ratio on the upside; on the Nasdaq, 1,408 issues rose and 1,278 fell for a 1.10-to-1 ratio.

The S&P 500 posted 92 new 52-week highs and 5 new lows; the Nasdaq Composite showed 113 new highs and 55 new lows.  — Reuters

Asia edgy on lingering growth worries, dollar up

TOKYO - Lingering concerns over global growth kept Asian stocks on a tentative footing on Wednesday, with more signs of gloom in the euro zone economy helping underpin the dollar.

The dollar extended gains after disappointing data out of Germany and Britain checked the euro's recent bounce.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.08 percent, but still not too far off a seven-month low hit at the start of the week.

Tokyo's Nikkei climbed 0.4 percent after touching a two-month trough on Tuesday.

Concerns over faltering global growth triggered a bruising selloff in global equity markets in the past week, and investors remain reluctant to buy into riskier assets as the drumbeat of weak data showed no signs of abating.

Overnight, a closely watched ZEW survey showed German analyst and investor morale fell below zero for the first time in nearly two years in October.

Adding to the gloom, the German government cut its growth forecasts, euro zone industrial production fell, British inflation slowed sharply in September and Fitch warned it may cut France's credit rating.

"Risk-off tone continues to dominate the markets as US equities pared most of the gains while Treasuries remain in demand," Credit Argricole said in a note to clients.

US Treasuries and German Bunds have rallied this week, with the yields on the latter hitting record lows on Tuesday after data reinforced fears the euro zone may be slipping into recession.

Wall Street put up a mixed performance overnight, reflecting the cautious mood in markets. The S&P 500 and Nasdaq booked modest gains to break a three-day string of sharp declines, but the Dow finished down for a fourth day.

The focus in markets is now on Chinese inflation-related data due at 0130 GMT with weaker-than-expected numbers potentially souring still fragile sentiment towards risk assets.

The dollar index, a gauge of the greenback's strength against a basket of major currencies, was up 0.1 percent at 85.941 as the downbeat data took a toll on the euro.

The dollar was up 0.3 percent at 107.33 yen, having pulled back from a one-month low of 106.68 hit the previous day.

The euro traded little changed at $1.2644

In commodities, US crude bounced slightly after posting its biggest percentage loss in about two years overnight on a downgrade in global oil consumption forecasts, projections for another big boost in shale oil and reluctance by OPEC members to cut output.

US crude was up 44 cents at $82.28 a barrel, although mounting evidence of slackening demand and unrelenting US shale output are expected to keep applying downward pressure on the commodity in the mid- to long-term. —Reuters

US stocks: Dow little changed; S&P 500 inches to record

NEW YORK - Wall Street stocks Thursday finished little changed with the S&P 500 inching to a new record following mixed US economic data and a flood of corporate earnings.

The Dow Jones Industrial Average slipped 2.83 points (0.02 percent) to 17,083.80, while the tech-rich Nasdaq Composite Index dropped 1.59 (0.04 percent) to 4,472.11.

The broad-based S&P 500 rose 0.97 (0.05 percent) to 1,987.98, creeping up to a record for the second day in a row.

Sales of new single-family houses fell 8.1 percent in June to an annual pace of 406,000, the Commerce Department said.

On the positive side, new claims for US unemployment insurance benefits slid to an eight-year low last week, dropping 19,000 to 284,000, the Labor Department reported.

Facebook surged 5.2 percent after earnings more than doubled to $791 million. But General Motors tumbled 4.5 percent as second-quarter profit slumped 85 percent to $190 million following a hefty charge for recalls.

Caterpillar fell 3.1 percent as it lowered its 2014 revenue forecast to a range of $54-$56 billion from the previous projection of $56 billion. The company cited a weaker outlook for construction in China, the Commonwealth of Independent States region made up of ex-Soviet countries and Africa/Middle East.

Athletic attire maker Under Armour shot up 14.7 percent after increasing its 2014 profit and revenue forecast following a 34 percent surge in second-quarter revenue to $619 million.

Other companies that reported earnings included American Airlines (-2.7 percent), Bristol-Myers Squibb (+0.3 percent), Celgene (-3.3 percent), Ford Motor (+0.3 percent), Hershey (-1.8 percent), Starwood Hotels and Resorts Worldwide (-5.5 percent), Qualcomm (-6.7 percent) and United Continental (-2.4 percent).

Wal-Mart Stores dipped 0.8 percent as it announced it was replacing Bill Simon as head of its US division with Greg Foran, currently head of Walmart Asia.

Online real estate company Zillow vaulted 15.3 percent higher on a report it wants to buy rival Trulia. Trulia bolted up 32.4 percent.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.51 percent from 2.46 percent Wednesday, while the 30-year increased to 3.30 percent from 3.26 percent. Bond prices and yields move inversely. — Agence France-Presse

source: gmanetwork.com

Wall St. opens higher, investors look to Yellen

NEW YORK - US stocks opened higher on Tuesday, boosted after earnings from JPMorgan and Goldman Sachs, though investors were looking ahead to testimony from U.S. Federal Reserve Chair Janet Yellen.

The Dow Jones industrial average rose 46.69 points or 0.27 percent, to 17,102.11, the S&P 500 gained 2.95 points or 0.15 percent, to 1,980.05 and the Nasdaq Composite added 6.92 points or 0.16 percent, to 4,447.34.

Shares of Goldman rose 1.5 percent to $169.67 while JPMorgan rose 3.8 percent to $58.41. — Reuters

source: gmanetwork.com

Dow, S&P end at records in fireworks before the Fourth

NEW YORK - The Dow and the S&P 500 closed at record highs on Tuesday as manufacturing activity picked up in the United States and Asia and increased optimism about the global economy's health.

The blue-chip Dow Jones industrial average came close to the 17,000 milestone in early afternoon trading, rising slightly over 1 percent to 16,998.70. The rally - led by IBM (IBM.N), up 2.8 percent at $186.35, and Visa Inc (V.N), up 1.7 percent at $214.25 - marked the first trading day of both the third quarter and the second half of 2014. The U.S. stock market will be closed on Friday for the Independence Day holiday on the Fourth of July.

Financial data firm Markit said its final US Manufacturing Purchasing Managers Index rose to 57.3 in June, the highest since May 2010, although it was slightly lower than the preliminary read of 57.5.

A report from the Institute for Supply Management showed its index of national factory activity was at 55.3, little changed from May's 55.4 reading.

"The basic message is that it's pretty much the same level as May so that's very positive news for the U.S. manufacturing," said Anthony Karydakis, chief economic strategist at Miller Tabak in New York.

The Dow Jones industrial average .DJI rose 129.47 points or 0.77 percent, to end at 16,956.07. The S&P 500 .SPX gained 13.09 points or 0.67 percent, to 1,973.32. The Nasdaq Composite .IXIC shot up 50.47 points or 1.14 percent, to 4,458.65.

Shares of Netflix Inc (NFLX.O) rose 7.4 percent to $473.10 after Goldman Sachs raised its rating on the streaming video company's shares to "buy" from "neutral", according to theflyonthewall.com.

Twitter (TWTR.N) shares jumped 2.6 percent to $42.05 on news that a former Goldman Sachs (GS.N) executive would become the company's new chief financial officer while current CFO Mike Gupta will become senior vice president of strategic investments.

Shares of credit and debit card companies rose after Elvira Nabiullina, the chairwoman of Russia's central bank, said Russia may reduce pledges imposed on MasterCard and Visa if they find local processing partners. MasterCard shares (MA.N) climbed 2.8 percent to $75.53.

Positive data from Asia helped buoy investors' confidence in the strength of the global economy, including China's final reading of the HSBC/Markit purchasing managers' index (PMI) for June, which rose to 50.7 from May's 49.4.

Manufacturing in Japan, the world's third-biggest economy, also picked up in June, fueled by improving demand at home. Growth in the euro zone, however, faltered as Germany, the region's top economy, slowed.

About 5.84 billion shares changed hands on US exchanges, in line with last month's average of about 5.8 billion, according to data from BATS Global Markets.

Advancers outnumbered decliners on the New York Stock Exchange by a ratio of about 2 to 1, while on the Nasdaq, nearly three stocks rose for every one that fell.  — Reuters

source: gmanetwork.com

Wall St. edges up on Intel but posts weekly decline

NEW YORK - U.S. stocks edged up on Friday, boosted by bullish news from the tech sector, but major indexes fell for the week as unrest in Iraq kept investors on edge.

Intel Corp (INTC.O) was one of the S&P 500's biggest gainers and one of Nasdaq's most active names, but overall gains were capped as investors kept a close watch on violence in Iraq that drove oil prices CLc1 to their highest since September.

Analysts are worried about the impact a protracted period of high commodity prices could have on economic growth, especially with indexes near record levels.

President Barack Obama said on Friday he needs several days to determine how the United States will help Iraq deal with a militant insurgency, but he ruled out sending U.S. troops back into combat and said any intervention would be contingent on Iraqi leaders becoming more involved.

"The situation in Iraq is another one of these geopolitical flare-ups that have a short-term impact on the market. It will continue to create volatility in the oil market, but I don't think it will spill over that much to equities," said Randy Frederick, managing director of trading and derivatives at Charles Schwab.

The CBOE Volatility index VIX .VIX, Wall Street's so-called fear gauge, fell 3 percent to 12.18 on Friday.

Intel shares jumped nearly 7 percent to $29.87 a day after the Dow component raised its full-year revenue outlook, citing stronger-than-expected demand for personal computers used by businesses.

OpenTable Inc (OPEN.O) popped 48.3 percent to $104.48 in heavy trading after Priceline Group Inc (PCLN.O) said it would buy the company for $2.6 billion. Priceline fell 3 percent to $1,189.30.

Among other Internet names, Yelp Inc (YELP.N) jumped 13.8 percent to $74.92 and GrubHub Inc (GRUB.N) rose 7 percent to $36.00.

The Dow Jones industrial average .DJI rose 41.55 points or 0.25 percent, to 16,775.74, the S&P 500 .SPX gained 6.05 points or 0.31 percent, to 1,936.16, and the Nasdaq Composite .IXIC added 13.02 points or 0.3 percent, to 4,310.65.

For the week, the Dow was down 0.9 percent, the S&P fell 0.7 percent and the Nasdaq was down 0.25 percent.

The week's decline was the first after three weeks of consecutive gains on the S&P 500. For the year, the broad market index is up about 4.8 percent.

Brent crude LCOc1 edged further above $113 a barrel on Friday, up about $4 since the start of the week, on concerns that an insurgency in Iraq could trigger civil war and eventually hit oil exports. [O/R]

In macroeconomic news, U.S. consumer sentiment unexpectedly fell in June as views by consumers with the lowest incomes soured, according to the preliminary June read from the Thomson Reuters/University of Michigan's index.

Finisar Corp (FNSR.O) plunged 21.9 percent to $19.71 a day after forecasting weaker-than-expected earnings, citing higher capital expenditure in China.

Trading volume was at around 5.07 billion shares on U.S. exchanges, below last month's average of about 5.76 billion, according to data from BATS Global Markets.  — Reuters

source: gmanetwork.com