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

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 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

World stocks drift as Fed rate outlook eases on service data

HONG KONG — World stock markets meandered Wednesday after a weak report on U.S. service companies added to expectations that the Fed won’t move anytime soon to raise interest rates.

KEEPING SCORE: European shares posted small gains in early trading. France’s CAC 40 rose 0.3 percent to 4,541.80 and Germany’s DAX rose 0.3 percent to 10,717.28. Britain’s FTSE 100 edged up less than 0.1 percent to 6,828.08. U.S. stocks were poised to open slightly higher, with Dow futures up 0.1 percent to 18,532.00 and broader S&P 500 futures rising 0.1 percent to 2,185.60.

U.S. SERVICES DATA: A private monthly survey found that U.S. services companies expanded in August at the slowest pace in more than six years. The Institute for Supply Management’s services index came in at its lowest level since February 2010. Last month’s decline was also the biggest since late 2008, when the U.S. was gripped by a recession amid the global crisis. While Federal Reserve chief Janet Yellen had said last month that the case for raising rates was becoming stronger, the numbers add to other recent evidence that the U.S. economy is still shaky and reduce expectations for such a move.

ANALYST INSIGHT: The latest figures are “highlighting a continuing concern that the recovery in the U.S. economy may be losing steam,” said Nicholas Teo at KGI Fraser Securities in Singapore. “This, together with last week’s lower than expected payroll numbers, may in turn deny Mrs. Yellen of the confirmation she needs to lift rates later this month.”

ASIA’S DAY: Japan’s benchmark Nikkei 225 index lost 0.4 percent to finish at 17,012.44 as the latest U.S. data pushed the yen higher, hurting shares of the country’s export manufacturers. South Korea’s Kospi fell 0.2 percent to 2,061.88 and Hong Kong’s Hang Seng dipped 0.2 percent to 23,741.81. The Shanghai Composite Index in mainland China climbed less than 0.1 percent to 3,091.93 and Australia’s S&P/ASX 200 rose 0.2 percent to 5,424.20.

ENERGY: Benchmark U.S. crude oil futures added 46 cents to $45.29 in electronic trading in the New York Mercantile Exchange. The contract added 39 cents to settle at $44.83 a barrel in New York. Brent crude, the benchmark for international oil prices, rose 54 cents to $47.80 a barrel in London.

CURRENCIES: The dollar sank to 101.66 yen from 101.99 yen in late trading Tuesday. The euro slipped to $1.1239 from $1.1246. TVJ

source: business.inquirer.net

World stocks drift as Fed rate outlook eases on service data

HONG KONG — World stock markets meandered Wednesday after a weak report on U.S. service companies added to expectations that the Fed won’t move anytime soon to raise interest rates.

KEEPING SCORE: European shares posted small gains in early trading. France’s CAC 40 rose 0.3 percent to 4,541.80 and Germany’s DAX rose 0.3 percent to 10,717.28. Britain’s FTSE 100 edged up less than 0.1 percent to 6,828.08. U.S. stocks were poised to open slightly higher, with Dow futures up 0.1 percent to 18,532.00 and broader S&P 500 futures rising 0.1 percent to 2,185.60.

U.S. SERVICES DATA: A private monthly survey found that U.S. services companies expanded in August at the slowest pace in more than six years. The Institute for Supply Management’s services index came in at its lowest level since February 2010. Last month’s decline was also the biggest since late 2008, when the U.S. was gripped by a recession amid the global crisis. While Federal Reserve chief Janet Yellen had said last month that the case for raising rates was becoming stronger, the numbers add to other recent evidence that the U.S. economy is still shaky and reduce expectations for such a move.

ANALYST INSIGHT: The latest figures are “highlighting a continuing concern that the recovery in the U.S. economy may be losing steam,” said Nicholas Teo at KGI Fraser Securities in Singapore. “This, together with last week’s lower than expected payroll numbers, may in turn deny Mrs. Yellen of the confirmation she needs to lift rates later this month.”

ASIA’S DAY: Japan’s benchmark Nikkei 225 index lost 0.4 percent to finish at 17,012.44 as the latest U.S. data pushed the yen higher, hurting shares of the country’s export manufacturers. South Korea’s Kospi fell 0.2 percent to 2,061.88 and Hong Kong’s Hang Seng dipped 0.2 percent to 23,741.81. The Shanghai Composite Index in mainland China climbed less than 0.1 percent to 3,091.93 and Australia’s S&P/ASX 200 rose 0.2 percent to 5,424.20.

ENERGY: Benchmark U.S. crude oil futures added 46 cents to $45.29 in electronic trading in the New York Mercantile Exchange. The contract added 39 cents to settle at $44.83 a barrel in New York. Brent crude, the benchmark for international oil prices, rose 54 cents to $47.80 a barrel in London.

CURRENCIES: The dollar sank to 101.66 yen from 101.99 yen in late trading Tuesday. The euro slipped to $1.1239 from $1.1246. 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 Street lower as investors turn cautious; Apple drags

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

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

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

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

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

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

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

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

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

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

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

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

Investors look to January effect at start of 2016

NEW YORK - As Wall Street wraps up its flattest year since 2011, investors will have to deal with many of the same issues next year as they attempt to gauge market direction.

While many market participants have a host of worries heading into 2016 that could hurt stocks and keep volatility high, they remain optimistic for gains in 2016 and a strong start to the year could boost that case.

According to the Stock Trader's Almanac, the direction of January's trading predicts the course for the year 75 percent of the time.

Stocks could get a boost next week from the so-called "January effect," when stocks that were sold off in December for year-end tax harvesting rally back in the next month as investors scoop them back up at lower prices.

Of the S&P 500 components, 301 were down 10 percent or more from their 52-week highs and 175 were off by at least 20 percent through Dec. 30, according to Ryan Detrick, market strategist at Kimble Charting Solutions in Cincinnati.

That broad decline was offset by the narrow leadership of the "FANG" stocks - Facebook, Amazon, Netflix and Alphabet. Combined, they comprise more than 5 percent of the weighting in the S&P 500 and have all risen at least 35 percent for the year.

While the overall breadth of the S&P is not promising, that may leave a broader swath of stocks that could see a rebound next month, according to Jeff Saut, chief investment strategist at Raymond James Financial in St. Petersburg, Florida.

"The individual investor is in hibernation. There are six distinct stages to a secular bull market and we are nowhere near euphoria, nowhere close, unless you own the FANGs," said Saut.

Despite the flat performance to finish out the year, stocks grappled with volatility throughout 2015. The S&P has moved at least 1 percent on a daily basis in either direction 72 times, the most since 2011, according to Standard & Poor's data.

The S&P 500 notched a record high of 2,130.82 on May 21 as middling economic data eased expectations for a rate hike from the US Federal Reserve. But three months later, the benchmark had fallen into correction territory, a drop of 10 percent from its high, when signs China's economy may be slowing faster than expected unnerved investors and a Fed rate hike drew closer.

"It turned into a big nothing. We are essentially where we started the year. We had a lot of volatility in between," said Ken Polcari, Director of the NYSE floor division at O'Neil Securities in New York.

"In retrospect, actually, it could have been a disaster and it really ended up kind of flat, so I count that as a win, once you add in dividends."

Along with the return of many investors next week after the holidays, the economic calendar is more active, culminating with Friday's payrolls report.

But while recent jobs reports have been closely monitored for signs the Fed will begin to raise rates, the influence of the report may be muted due to the recent hike by the Fed and its intention to continue raising at a gradual pace.

"The Fed knows it needs to be careful and they are going to be careful," said Scott Wren, senior global equity strategist at Wells Fargo Investment Institute in St. Louis. — Reuters

Wall Street suffers feeble end to turbulent 2015

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

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

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

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

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

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

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

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

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

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

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

Good riddance!

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Wall Street edges up in quiet session; Nasdaq ends at record

U.S. stocks ended with slight gains on Tuesday, with the Nasdaq eking out another record close while investors continued to await clarity on whether Greece could reach a deal to prevent defaulting on its loans.

The day's action was quiet, with trading volume below average. While energy shares rose alongside a jump in the price of crude oil, a sharp rise in the U.S. dollar capped broader gains.

While there were no major developments involving Greece, investors continued to hope that the country's newest budget proposals - introduced on Monday - would avert a looming default.

Greece needs fresh funds to avoid defaulting on a $1.8 billion debt repayment to the International Monetary Fund on June 30. Equities have been largely driven by Greece lately, with investors concerned that if the country defaults, it may have to leave the euro or the European Union, potentially shaking the region's economic foundations.

"The market seems to expect that this will end favorably, or at least benignly, but I think people need to be nimble right now as circumstances could change at any time," said Steve Sosnick, equity-risk manager at Timber Hill/Interactive Brokers Group in Greenwich, Connecticut.

"Greece may not be all that meaningful to the U.S. market, but it could have a big impact on the euro and the dollar, and it is unclear how big of an impact that will have on stocks."

The U.S. dollar index .DXY, which measures the greenback against a basket of currencies, rose 1.1 percent. A strong dollar is considered a headwind for equity prices as it weighs on the profits of multinational corporations.

U.S. crude futures settled up 1 percent at $61.01 per barrel, lifted ahead of U.S. inventory data expected to show strong demand for gasoline. The S&P energy index .SPNY rose 0.3 percent and was one of the day's top-performing sectors. Halliburton Co (HAL.N) rose 0.9 percent to $44.49.

AT&T Inc (T.N) rose 2.5 percent to $35.91 and was one of the biggest percentage gainers on the S&P 500 after at least two brokerages upgraded the stock.

Facebook Inc (FB.O) shares rose 3.7 percent to $87.88, a record close. With the day's gains, the social network's market value is now bigger than that of Dow component Wal-Mart Stores Inc (WMT.N).

The Dow Jones industrial average .DJI rose 24.29 points, or 0.13 percent, to 18,144.07, the S&P 500 .SPX gained 1.35 points, or 0.06 percent, to 2,124.2 and the Nasdaq Composite .IXIC added 6.12 points, or 0.12 percent, to 5,160.10. The Nasdaq ended at a record while the S&P 500 closed 0.3 percent below its own record.

Advancing issues outnumbered declining ones on the NYSE by 1,772 to 1,276, for a 1.39-to-1 ratio on the upside; on the Nasdaq, 1,567 issues rose and 1,203 fell for a 1.30-to-1 ratio favoring advancers.

The S&P 500 posted 43 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 180 new highs and 23 new lows.

About 5.4 billion shares traded on all U.S. platforms, according to BATS exchange data, below the month-to-date average of 6.15 billion. — Reuters

Wall Street ends higher as jitters about earnings and oil recede

NEW YORK - U.S. stocks closed higher on Wednesday, fueled by gains in oil companies and speculation that upcoming first-quarter earnings reports might not be quite as weak as previously thought.

All 10 major S&P 500 sectors gained, with the energy index leading, up 2.3 percent. U.S. crude jumped more than 5 percent after a lower-than-expected build of U.S. crude stockpiles.

Intel jumped 4.25 percent to $32.83 after the chipmaker said late on Tuesday it expects flat revenue for the entire year despite some weakness in the first quarter.

Investors have feared the March-quarter earnings season, just getting under way, would be crippled by low oil prices, a strong dollar and extreme weather in the eastern United States. First-quarter profits for S&P 500 companies are seen dropping 2.6 percent, according to Thomson Reuters data.

"Companies can jump over a bar that's about as low as a limbo stick," said Jack Ablin, chief investment officer at BMO Private Bank in Chicago. "Beating expectations should be relatively easy."

Of the 36 companies in the S&P 500 that have reported so far, 81 percent beat expectations, better than the 63 percent of companies exceeding expectations in a typical quarter.

But just 47 percent of companies exceeded revenue expectations, worse than 61 percent seen in a typical quarter. That suggests companies are bolstering their bottom lines by cutting costs instead of by expanding their businesses.

U.S. shares also benefited after the European Central Bank said it remained committed to its full asset-buying program to revive the euro zone economy.

The strong dollar hurts U.S. companies dependent on overseas sales, while slumping oil prices erode the profits of energy companies.

But many industrial and transportation companies benefit from cheap oil and its derivatives. Delta Air Lines posted first-quarter profit above analysts' expectations and its stock rose 2.60 percent to end at $44.20.

The Dow Jones industrial average rose 75.91 points, or 0.42 percent, to close at 18,112.61. The S&P 500 gained 10.79 points, or 0.51 percent, to 2,106.63 and the Nasdaq Composite added 33.73 points, or 0.68 percent, to end the day at 5,011.02.

Wednesday's gains bring the Nasdaq to within striking distance of its record-high close of 5,048.62 points set in 2000 during the dot-com boom.

Bank of America's shares ended down 1.14 percent at $15.64. First-quarter profit at the No. 2 U.S. bank by assets narrowly beat analysts' estimates.

After the bell, video streaming company Netflix posted quarterly results that sent its shares 12 percent higher.

On Wednesday, advancing issues outnumbered declining ones on the NYSE by 2,037 to 1,011, for a 2.01-to-1 ratio; on the Nasdaq, 1,821 issues rose and 928 fell for a 1.96-to-1 ratio.

The S&P 500 posted 18 new 52-week highs and 1 new low; the Nasdaq Composite recorded 107 new highs and 18 new lows.

About 6.7 billion shares changed hands on U.S. exchanges, above the 6 billion daily average for the month to date, according to BATS Global Markets.  — 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

Dow, S&P 500 close slightly lower; semis boost Nasdaq

NEW YORK - The S&P 500 and the Dow closed with slight losses on Monday after briefly touching intraday records, but strength in semiconductors boosted the Nasdaq.

Monday's subdued trading followed the Dow's biggest weekly gain since January 2013 and the S&P's biggest two-week jump since December 2011. Gains in recent weeks have largely come on the back of strong quarterly results, which have eased concerns over how corporations are faring in an uncertain global economy.

"We got back to the highs in the S&P 500 and Dow rather quickly, so I think you're running into some resistance and profit-taking," said Stephen Carl, principal and head of U.S. Equity Trading at The Williams Capital Group.

While the market's momentum is to the upside, near-term trading may be quieter as earnings season draws to a close. With results in from 73 percent of companies, three-quarters have beat analysts' expectations, according to Thomson Reuters data, above the long-term average of 63 percent.

The Dow Jones industrial average .DJI fell 24.28 points, or 0.14 percent, to 17,366.24, the S&P 500 .SPX lost 0.24 points, or 0.01 percent, to 2,017.81 and the Nasdaq Composite .IXIC added 8.17 points, or 0.18 percent, to 4,638.91.

Shares of AIG (AIG.N) rose 1.4 percent in after-hours trading. The company reported better-than-expected third-quarter earnings.

Sprint (S.N) shares fell 5.25 percent after hours. Its third-quarter revenue rose slightly less than expected.

Among the day's biggest movers, Sapient Corp (SAPE.O) rose 42 percent to $24.60 on heavy volume after Publicis (PUBP.PA) agreed to buy the digital ad company for $3.7 billion in cash.

Covance Inc (CVD.N) jumped 25.9 percent to $100.57 after Laboratory Corp of America Holdings (LH.N) agreed to buy the company for $6.1 billion. Laboratory Corp fell 7.4 percent to $101.23 as the S&P's biggest decliner.

In the latest economic data, U.S. construction spending fell 0.4 percent in September, well below expectations. However, manufacturing activity unexpectedly accelerated in October and automobile sales were strong, easing concerns of a significant moderation in economic growth.

NYSE declining issues outnumbered advancers 1,565 to 1,511, for a 1.04-to-1 ratio on the downside; on the Nasdaq, 1,487 issues fell and 1,199 advanced for a 1.24-to-1 ratio.

The S&P 500 posted 73 new 52-week highs and 1new low; the Nasdaq Composite recorded 131 new highs and 44 new lows.

About 7 billion shares changed hands on U.S. exchanges, below the 7.8 October average, according to data from BATS Global Markets.  — Reuters