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 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

Asian markets suffer as US-North Korea tension escalates anew

Asian markets fell again Wednesday as nervous traders shifted toward safe havens on concerns about North Korea’s latest saber-rattling, while technology firms suffered another torrid day of selling.

Washington confirmed Tuesday that Pyongyang’s latest rocket test was of a missile capable of reaching the United States, ratcheting up pressure in an already tense crisis on the Korean peninsula.

Dealers are now awaiting the next development after Russia and China issued a joint appeal to ease tensions while the United Nations Security Council will hold an emergency meeting later in the day.

The test came just as the US was preparing to celebrate Independence Day and days before a G20 summit, where it will likely top the agenda.

It was the latest provocation by North Korean leader Kim Jong-Un who is determined to develop a nuclear weapons program he says is needed to ward off invasion.

South Korea and the US on Wednesday launched a barrage of missiles simulating a precision strike against Pyongyang, in response to the provocation.

“Traders and investors may be wondering what reaction this latest missile test will get,” said Greg McKenna, chief market strategist at AxiTrader.

With caution flowing through trading floors, markets sank into negative territory.

Tokyo ended the morning 0.5 percent lower with the yen, considered a safe bet in times of turmoil and uncertainty, strengthening against the dollar which hurt Japan’s exporters.

Hong Kong slipped 0.1 percent a day after diving 1.5 percent, while Shanghai shed 0.2 percent. Sydney lost 0.3 percent, Singapore eased 0.1 percent and was marginally lower.

Wellington and Taipei were also in the red.

Traders were given few leads with European markets slightly down and Wall Street closed for the July 4 holiday.

Tech firms were again suffering as global central banks consider tightening monetary policy.

The sector has been a huge beneficiary of the years of cheap borrowing from lenders, sending their stock prices soaring but the prospect of an end to such largesse has led to profit-taking.

Hong Kong-listed Tencent extended Tuesday’s more than four percent loss, while AAC Technologies also retreated and Sony slipped in Tokyo.

However, energy companies continued to benefit from the recovery in oil prices although the black gold, which is up about 10 percent since hitting recent lows in mid-June, dipped slightly Wednesday in Asia.

Investors are awaiting the release Wednesday of minutes from the Federal Reserve’s June policy meeting and key US jobs data Friday. JPV

source: business.inquirer.net

Dollar retreats as Trump takes over; most global stocks fall

NEW YORK—The dollar retreated Monday, with warnings of wild volatility ahead, as Donald Trump began his presidency by attacking global trade deals and promising to put America first.

Most large global equity markets also fell amid uncertainty over the new US leader’s plans. Wall Street, London, Frankfurt, Paris and Tokyo all closed lower.

“America first, markets second,” said LCG analyst Jasper Lawler of the day’s sentiment on trading floors.

“Attempts to break out into new highs for the year have been temporarily shelved after Donald Trump opted for a protectionist, anti-establishment inauguration address,” his note to clients added.

In foreign exchange, the euro jumped to $1.0763 from $1.0697 on Friday.

‘Apocalyptic tone’

“The greenback … seems to have been shaken both by the apocalyptic tone set by Trump at his inauguration, and the global protests that greeted the former Apprentice host’s ascension to the highest office in the land,” said Spreadex analyst Connor Campbell.

Trump followed up an inauguration speech seen as angry and protectionist by making his first official act the withdrawal from the 12-nation Trans-Pacific Partnership. Trump also said he would renegotiate the North America Free Trade Agreement, threaten to impose border taxes, and his chief spokesman said the new president would not hesitate to confront China over the South China Sea.

READ: Trump torpedoes Pacific trade pact

Investors greeted Trump’s surprise election win in the hopes he would win pro-growth measures such as public works spending, lower taxes and regulatory reforms. Trump confirmed on Monday he plans to pursue those priorities, but markets have been worried the tough talk will lead to a trade war.

Doubts about his spending promises also took their toll on the US currency.

“Sellers swiftly exploited the lack of clarity in the (inauguration) speech regarding the proposed fiscal stimulus measures,” said Lukman Otunuga, an analyst at FXTM, predicting more trouble ahead for the greenback.

“The growing threat of Donald Trump’s proposed fiscal stimulus failing to keep up with market expectations may ensure dollar weakness becomes a recurrent theme in the short term,” he said.

The US unit was down more than four percent on the yen from the highs touched late in December. It was also well down against the euro and even against the pound despite concerns about Britain’s exit from the European Union.

“I suspect we’re entering extremely volatile times for the dollar,” Stephen Innes, senior trader at OANDA, said in a note.

Trump last week said the greenback was too strong against China’s yuan and claimed this was “killing” the US economy.

Key figures at 2200 GMT

New York – Dow: DOWN 0.1 percent at 19,799.85 (close)

New York – S&P 500: DOWN 0.3 percent at 2,265.20 (close)

New York – Nasdaq: DOWN less than 0.1 percent at 5,552.94 (close)

London – FTSE 100: DOWN 0.7 percent at 7,151.18 points (close)

Frankfurt – DAX 30: DOWN 0.7 percent at 11,545.75 (close)

Paris – CAC 40: DOWN 0.6 percent at 4,821.41 (close)

EURO STOXX 50: DOWN 0.9 percent at 3,271.41 (close)

Tokyo – Nikkei 225: DOWN 1.3 percent at 18,891.03 (close)

Shanghai – Composite: UP 0.4 percent at 3,136.77 (close)

Hong Kong – Hang Seng: UP 0.1 percent at 22,898.52 (close)

Euro/dollar: UP at $1.0763 from $1.0697

Pound/dollar: UP at $1.2524 from $1.2365

Dollar/yen: DOWN at 112.73 yen from 114.58 yen

Oil – West Texas Intermediate: DOWN 47 cents at $52.75 per barrel

Oil – Brent North Sea: DOWN 26 cents at $55.23 per barrel

source: business.inquirer.net

US stock indexes slide in afternoon trading; oil rises

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

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

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

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

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

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

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

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

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

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

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

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

source: business.inquirer.net

British vote on leaving the EU rocks world financial markets

SEOUL, South Korea — World financial markets were rocked Friday by Britain’s unprecedented vote to leave the European Union, with stock markets and oil prices crashing and the pound hitting its lowest level in three decades.

The uncharted, unexpected path of a European Union without Britain sparked the sell-offs, with more jitters expected as global markets try to digest the shock result.

Tokyo stocks plummeted about 8 percent, their biggest fall since 2008, while South Korea’s Kospi tumbled about 3 percent. Britain’s FTSE 100 futures tanked 8.3 percent.

Crude oil prices and US futures also took a big hit. The British pound plummeted more than 10 percent in six hours while the yen surged about 3 percent to the US dollar as investors seeking safety snapped up the Japanese currency.

By early afternoon in Asia, a tally by the BBC showed Britain had voted to leave the 28-nation European Union by about a 52 percent to 48 percent margin.

Japan’s Nikkei 225 plunged 8.3 percent to 14,897.32 while South Korea’s Kospi sank 3.4 percent to 1,918.70. Hong Kong’s Hang Seng index tumbled 4.8 percent to 19,866.20 and Australia’s S&P/ASX 200 fell 3.4 percent to 5,012.20. Stocks in Shanghai, Taiwan, Sydney and Southeast Asian countries were sharply lower.

US futures took a dive. Dow futures fell 3.4 percent and S&P futures nosedived 5 percent.

“Financial markets throughout the night have been chaotic to say the least and this may continue as the day progresses,” said Craig Erlam, senior market analyst at Oanda in London. “All eyes will now be on central banks around the world to see how they respond to these market developments, particularly the Bank of England and the Bank of Japan.”

On Thursday, Wall Street finished with rallies as pre-poll forecasts showed that Britain would keep the EU membership. Asian stock markets opened the day higher but the mood turned sour as results started to show that the “leave” vote would win. As the results increasingly pointed to the EU exit, investors dumped stocks and other risky assets.

The results sent the pound on a wild ride. It rose to its highest point for the year of $1.50 before tumbling more than 10 percent to a low of $1.3303, its lowest level since 1985.

In other currencies, the dollar fell to 101.51 yen from 104.80 yen while the euro weakened to $1.097 from $1.132.

Benchmark US crude plummeted 6.4 percent, or $3.17, to $46.94 per barrel in New York. Brent Crude, the benchmark for international oil price, fell 6.1 percent, or $3.11, to $47.80 per barrel in London.

source: newsinfo.inquirer.net

Pound, Asia markets collapse as Britain quits EU

HONG KONG—The pound collapsed to a 31-year low and currency, equity and oil markets went into freefall Friday as projections showed Britain has voted to leave the European Union.

Sterling crashed more than nine percent to $1.3305, its weakest level since 1985, while the greenback itself slumped below 100 yen for the first time in two-and-a-half years as traders fled to safety.

In the weeks leading up to Thursday’s historic vote, there had been widespread warnings that a vote to leave would cause another rout across global markets that would wipe trillions off valuations, just months after a painful China-fuelled sell-off.

And as results came in, the doomsday scenario began to unfold as the BBC and other broadcasters called a win for “leave”.

The pound had earlier topped $1.50 following predictions the “remain” group would win but as the Brexit camp posted victories around the country, traders stampeded to put in sell orders.

The dollar slumped briefly to 99.02 yen, the first time it has gone below 100 yen since November 2013, before edging back up slightly. The Japanese unit is considered a safe bet in times of uncertainty and turmoil.

Japan’s Finance Minister Taro Aso will hold an emergency news briefing Friday. He has previously said Japan would closely watch the dollar-yen rate and act accordingly if the yen became too strong, indicating the government could intervene in currency markets.

A flight to safety also saw higher-yielding and emerging market currencies slump, with the Australian dollar down 3.2 percent, South Korea’s won diving 2.4 percent, Malaysia’s ringgit down 2.3 percent and the Indonesian rupiah shedding 1.7 percent.

There were also heavy losses for India’s rupee, the Canadian dollar and the Singapore dollar.

‘Independence day’

The outcome has upturned expectations, which had been for a tight race narrowly won by the “remain”, while bookmakers had said there was a 90 percent chance of staying in.

But as the shock results rolled in, equity markets went into meltdown.

Tokyo plunged more than eight percent in the afternoon, Sydney shed 3.7 percent and Seoul was 3.5 percent off. Mumbai lost three percent and Shanghai sank 1.4 percent by lunch, while Taipei, Wellington, Manila and Jakarta all saw sharp losses.

Hong Kong tumbled 4.7 percent by the break with British banking giants HSBC and Standard Chartered both plunging more than 10 percent.

In the early hours in Britain, Nigel Farage, leader of the anti-Europe UK Independence Party, declared victory, saying it was the country’s “independence day”.

The prospect of a severe hit to the global economy also hammered oil prices, with both main contracts slumping more than six percent.

“We are seeing oil swept up in the general market nervousness to the vote,” Ric Spooner, a chief analyst at CMC Markets in Sydney, told Bloomberg News.

“Corrections are likely to be fairly shallow in oil because prices will be supported by the fact a balanced market is firmly on the horizon.”

source: business.inquirer.net

World stocks up as Britain leans towards EU remain vote

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

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

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

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

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

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

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

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

‘Risk-on move’

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

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

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

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

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

Key figures around 0830 GMT

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

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

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

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

Pound/dollar: UP at $1.4623 from $1.4348

Dollar/yen: UP at 104.56 yen from 104.19 yen

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

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

source: business.inquirer.net

How To Buy Stock Online – Your Ultimate Guide

If you would like to buy stock online, then you’re making a smart move – because more and more traders are using the Internet to place their trades conveniently and easily by using an online brokerage service. In this guide, we are going to share some further information on the subject of purchasing stock online, so by the time you have finished reading, you will know which steps to take next.

To begin with, the most efficient way to buy stock online is to simply use an online broker, but it’s important to remember that not all of these services are created equally. In general, they come with various features and functions that you need to understand before you settle on a specific platform.

In particular, you need to pay close attention to the commission that’s involved when using an online brokerage to trade stock for you. In most cases, this commission will be a percentage of the stock purchase price, but there will be a variety of different deals available if you investigate further.

Next, it’s well worth finding a stockbroker who has expert advice and knowledge to share – because this goes a long way towards making sure you purchase stock that will give you a respectable return on your investment rather than become a liability. Several of the top online stockbroker services come with a range of educational and training materials, and this information is very useful – especially if you are a beginner.

Something else you need to consider when it comes to purchasing stock online is whether you want to use a full-service solution. The key benefit of using full-service brokers is that you will not need to follow the markets yourself, and you can trust the experience and knowledge of your broker to make savvy trading decisions for you.

Of course, this involves a great deal of trust, and there will usually be no guarantees of a return on your investment –so you will need to do plenty of research into the overall track record of any full-service broker before you part with your cash.

However, many people greatly appreciate the convenience offered by a full-service solution, and this is often an effective way to invest part of a retirement fund or a cash windfall that you want to make the most out of. By placing these funds into the hands of a skilled broker, you will be able to secure your financial investment for the long term, and possibly earn an excellent profit in the process.

Yet another option you may be interested in is using a discount broker. While these services do not require such a hands-on experience, they can certainly save you quite a bit of money – so many people refer them for this reason alone.

If you already have expert knowledge in the stock market and know exactly which stocks you want to buy and sell, then using a discount broker who charges a minor fee will usually be a good decision. In most cases, these services are best for people who already have a great deal of experience, so they do not need the extra handholding that comes with using a full-service broker.

Finally, it’s wise to devise a system for buying and selling your stocks, rather than doing it in a careless and haphazard manner. Many people use a stock pick service which gives them expert picking advice, and this type of assistance can be a huge boon to your stock trading efforts.

Conclusion

Overall, learning how to buy stock online is a relatively straightforward process – but the hard part comes with knowing which stocks to buy and when to sell them. However, the first step is to find a quality broker, and the information in this guide should guide you towards a savvy decision.

source: stocktrading4beginners.info

Global shares mixed after Wall Street slump, oil price rally

KUALA LUMPUR, Malaysia — European stocks were mostly higher Thursday while Asian shares were mixed after a weak session on Wall Street. Tokyo shares rebounded after a weak start as the yen weakened against the U.S. dollar.

KEEPING SCORE: France’s CAC 40 rose 0.2 percent at 4,325.09 and Germany’s DAX gained 0.1 percent to 9,986.52. Britain’s FTSE 100 was nearly flat at 6,158.38. Dow and S&P 500 futures rose 0.4, suggesting a positive start for Thursday trading.

BRITISH FACTOR: A raft of data is due out later Thursday

and traders are watching for further clues on monetary policy from a speech by Bank of England Governor Mark Carney, especially in light of Britain’s referendum on continued EU membership due next month.

TOYOTA PROFIT: Shares in Toyota Motor Corp. fell 1.4 percent after a 6.1 percent drop overnight in New York. On Wednesday, the company projected a 35 percent plunge in profit for the fiscal year through March 2017 as the perks of a favorable exchange rate fade, and it reported a 4 percent drop in profit for January-March on-year. Other exporters can expect similar woes thanks to the yen’s recent gains against the U.S. dollar.

OIL PRICES: Already trading at its highest price in six months, benchmark U.S. crude rose overnight after the government reported a surprise decline of 3.4 million barrels in supplies for last week and a 6 percent reduction in U.S. oil output. U.S. oil gained 1 cent to $46.24 a barrel in electronic trading on the New York Mercantile Exchange. It jumped $1.57, or 3.5 percent, to $46.23 a barrel on Wednesday. Brent crude, the international benchmark, gained 5 cents to $47.65 a barrel. It had jumped $2.08, or 4.6 percent, to $47.60 a barrel in London.

ANALYST VIEWPOINT: “Commodity stocks are among the few positive movers today, following a major oil rally on the back of U.S. evidence consumption is eating into the historically high stock piles of crude,” Michael McCarthy of CMC Markets said in a commentary. “This better demand picture combined with a slightly weaker USD makes energy and materials the sectors du jour.”

ASIA’s DAY: Japan’s Nikkei 225 stock index rose 0.4 percent to 16,646.34, while the Hang Seng index of Hong Kong dropped 0.7 percent to 19,915.46. South Korea’s Kospi lost 0.1 percent to 1,977.49 and Australia’s S&P/ASX 200 fell 0.2 percent to 5,359.30. Taiwan fell but most benchmarks in Southeast Asia rose.

CURRENCIES: The dollar rose to 108.99 yen from 108.40 in the previous session. The euro slipped to $1.1413 from $1.1424. The yen-dollar rate has “slipped back down to 108 levels, as a short-squeeze in the early week abated with no more official talk of intervention yesterday, while markets are also doubting if Japan would intervene in advance of the G7 summit,” Mizuho Bank Ltd. (Singapore branch) said in a commentary. TVJ

source: business.inquirer.net

Asian indexes little changed as Belgian attacks worries ease

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

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

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

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

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

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

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

source: business.inquirer.net

Characteristics Fit For CFD Trading

If you are familiar with CFD (contract for difference) trading you would know that it is not for everybody. The job is demanding, high-stressed, fast-paced, and downright difficult. Nevertheless, there are individuals whose innate characteristics are suited for such job. Here are specific personality characteristics that are fit for successful traders.

Realistic CFD Trading

CFD trading is not an exact science. Losses are possible as much as gaining. Nobody, no matter how good they are can guarantee a winning trade all the time. There are a lot of factors that come into play during trading and most of them are outside anybody’s control. This is the reason why being realistic is important for a trader to excel. If you want to go into this kind of business then you have a complete grasp of what is happening all around you. Even if you plan on earning an identified amount, you have to be open to the possibility of not hitting it if odds are not favorable. Realistic people are grounded. They are accepting of circumstances, whether good or bad. They have a clear grasp of the fact that there are just certain happenings that are beyond control. They do not brood long and continuously move on.

Driven

Being successful in CFD trading requires passion and immeasurable amount of drive. As earlier mentioned, this business is not easy. There will be a lot of times that you might feel discouraged and frustrated because of failures. However, if you stop and quit every time things get tough then you will not be present to see better days. Individuals who are driven have high endurance. They can stay in a task for a long time until they figure it out. They are tireless in pursuing what they want. They don’t stop until they reach their goals because they have to satisfy their need for achievement.

Optimistic

True optimists do not live in a make-believe world, where everything is pretty and colorful. If you are a true-blue optimistic person it means that you don’t easily get bogged down by set-backs. You have the ability to bounce back whenever you encounter failures. You have an attitude that readily sees what you can use to do better, even during failings. Being optimistic is important when doing CFD trading. Traders encounter situations that may seem unbearable and without a healthy attitude it would be hard to go on and improve.

Flexible

There is no clear cut strategies that can guarantee a winning trade every time. Every strategy is dependent on the kind of situation. There are even a lot of instances wherein there is a need to change techniques during trading. This is where being flexible would come in. If you are flexible it is very unlikely that you are stubborn. You will not have any difficulty changing strategies mid-way. You wouldn’t stick to things that are not working just because you thought it would. You have an open-mind and can readily adapt. If you are not flexible then you may end up losing all your account credit sticking to what you believe in; even though, it no longer applies.

Sociable

Technically, traders work alone. However, every trade involves numerous traders, meaning people. Essentially individuals in the trading business are indirectly dealing with a lot of people all the time. If you are sociable, you can mingle with different kinds of people, most especially traders. You may not be aware of it during the start of contact but you get to take home valuable knowledge whenever you interact with others. This is particularly true if you have contacts with some of the best people in the field. You can learn so much from their wealth of experience.

source:  marriedwithdebt.com

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

Hewlett-Packard board approves split into two companies

Hewlett-Packard Co said its board had approved the previously announced split of the company into two separate listed entities - computers and printers, and corporate hardware and services.

Hewlett-Packard said on Thursday that it expected its split into Hewlett Packard Enterprise Co and HP Inc to be completed on Nov. 1.

A day later, Hewlett Packard Enterprise, comprising the corporate hardware and service business, will start trading on the New York Stock Exchange under the ticker symbol "HPE".

Hewlett-Packard, which will be renamed HP and comprise the computers and printers business, will continue to trade under its current ticker symbol.

Hewlett-Packard shareholders will get one share of Hewlett Packard Enterprise for each share held as of Oct. 21.

The tax-free distribution will be on a pro-rata basis, the 75-year-old company said.

Hewlett-Packard announced the split in October 2014 after years of struggling to adjust to the post-PC computing era.

Hewlett-Packard said it expected Hewlett Packard Enterprise to start trading on a "when issued" basis on or around Oct. 19 under the ticker symbol "HPE WI".

Hewlett-Packard shares were unchanged at $25.61 in premarket trading on Thursday.

Up to Wednesday's close, the stock had fallen about 27 percent since Oct. 3, the last trading day before the company announced the split.  — Reuters

Asian shares edge up, brush off soft China data

TOKYO - Asian shares edged up on Monday in cautious trade, brushing off soft economic data from China, as investors looked to whether the US Federal Reserve is confident enough to raise interest rates for the first time in a decade.

US stock futures rose 0.4 percent from late US levels in early Asian trade while Japan's Nikkei rose 0.4 percent. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.3 percent.

Data published at the weekend showed growth in China's investment and factory output missed forecasts in August, raising the chances that China's third-quarter economic growth may dip below 7 percent for the first time since the global crisis.

The data add to expectations that Beijing will respond with more measures to prop up the economy.

"The numbers fit with our view that China will have to roll out more monetary easing," said Fumio Nakakubo, Japan CIO at UBS's wealth management division.

China's output of key industrial commodities including coal and steel weakened in August, as government measures to prevent smog from affecting World War Two commemorations further cut production already lowered by a slowing economy.

Slowing demand from China are likely to keep a tab on commodity prices.

Influential Wall Street trader Goldman Sachs cut its outlook on oil late last week, lowered its 2016 forecast for US crude to $45 a barrel from $57 previously, citing oversupply and concerns over China's economy.

The investment bank said crude could even fall to near $20 a barrel.

In early trade, US crude futures traded at $44.82, up 0.4 percent from last week's close after a 3.0 percent fall last week.

Still trading in most asset classes could be subdued as investors look to whether the US Fed will raise rates at its policy meeting on Sept 16-17.

"It is fair to say that the full spectrum of views is on offer. Clearly this is the most anticipated Fed meeting in a number of years," analysts at ANZ said in a report.

A small majority of forecasters are sticking to their guns and predicting the Federal Reserve will pull the trigger next week on the first US interest rate increase in nearly a decade.

Traders are pricing in smaller chance of a rate hike, however, suspecting the Fed may tread cautiously given the falls in equity markets and commodities in recent weeks.

"We think it is almost 50-50 whether the Fed will raise rates this week but we expect a rate hike by December on the grounds that the US economy is pretty strong," said UBS's Nakakubo.

In the currency market, the dollar was little changed against major currencies.

Against the yen, it traded at 120.67 yen. The euro stood little changed at $1.1342, holding on to last week's 1.8 percent gain. —Reuters

Operation to steady China stocks a success, but patient comatose

SHANGHAI/HONG KONG - Tough medicine for China's ailing stock markets has brought stability to prices, at least for now, but it has come at a cost; equities and futures are trading so thinly that they are in danger of flat lining.

Intraday volumes on key onshore equity markets fell and stock futures turnover all but evaporated this week, after exchanges proposed a "circuit breaker" to limit index swings and China altered dividend taxes to favor long term investors.

The moves were welcomed by some, but the sharp drop in volumes also underlined how many investors have lost confidence in Beijing's ability to manage the turmoil that saw stocks slide over 40 percent since June.

Under the country's old economic model, that may not have mattered so much: bank lending for infrastructure projects and manufacturing was what kept the economic engine running.

Now China wants to modernize its economy, favoring nimbler, high-tech companies that need equally nimble, modern financial markets to finance them. Comatose stock and futures markets would represent a major blow to its ambitions.

Wang Feng, a fund manager and CEO of Alpha Squared Capital, is considering joining the mass exodus from Chinese equities.

He told Reuters he was looking into investing in commodities futures as an alternative to stock index futures. Some of his peers in the high-frequency trading community were cancelling plans to come to China altogether.

Wang blamed a series of attempts in recent weeks by regulators to curb excessive speculation for taking the life out of the market.

"The joke now is that the market is a vegetative patient."

Others are shifting their strategies to offshore futures contracts tracking China-based ETFs, like the iShares A50 , Wang added.

Qiu Zhi, a strategist at Huatai Securities Co, said he was seeing rising inquiries from Chinese investors to open accounts to trade index futures in Hong Kong.

"The rules of the game are more consistent in Hong Kong."

Rewriting the rules

China has busily rewritten the rules in recent weeks, and there has been no let up in policy changes and intervention aimed at shoring up markets and staving off full-blown panic.

Adding to authorities' crackdown on derivatives trade, focused mainly on sellers, the exchanges proposed this week to add a "circuit breaker" to the benchmark CSI300 index that would suspend trade if it moved up or down over 5 percent in a day.

While it appears to have convinced some investors to stop selling shares, it may also have convinced people not to buy.

Volumes on the Shanghai Composite Index are down more than 40 percent following Monday's announcement of the circuit breaker plan, and on Tuesday they were at their lowest since February, a month in which trade typically dives due to the Lunar New Year holiday week.


Traders suspect much of the remaining business comes from the government's so-called "national team" of investors who sweep in to push indexes up near the end of a day, resulting in sudden rises by the close that are hard to explain otherwise.

Once-active index futures markets have seen volumes vaporize; trade in the benchmark CSI300 index future contract collapsed this week, with transactions falling from around 600,000 on Friday to less than 23,000 on Tuesday.

That compares with a peak of 2.43 million in late August and comes after China raised margin requirements on some stock index futures trading.


The risk for China is a stable but illiquid stock market, meaning securities regulators will struggle to re-open the suspended IPO market.

As long as share issues remain suspended, the stock market will not serve as a viable fundraising alternative to bank loans for the rapidly expanding companies that Beijing wants to lead its economy in the long term.


Looking for the exit

Retail investors who dominate Chinese stock markets have consistently said they want to exit as soon as they can do so at minimal loss.

The sliding volumes highlight their retreat, in a blow to Beijing's vision of a society that can invest safely and profit from the country's expanding and increasingly dynamic economy.

Institutional investors say they have been put off by heavy-handed pressure from Beijing to buy and hold shares, and in an environment in which fund managers are being questioned by authorities about their strategies, it is increasingly seen as safer not to trade at all.

"We are staying out of shares at the moment," said a hedge fund manager focused on China consumer plays based in Hong Kong.

Declining investor interest in stocks was predicted by many analysts and economists, who warned that attempts to lure buyers into the market by suppressing sellers would backfire.

"Time and again, we have seen countries trying to introduce measures to support their stock markets, but the only thing that has worked in the long term is to let markets clear themselves," said Dominic Rossi, global chief investment officer of equities at Fidelity Worldwide Management, which manages $290 billion in assets globally.

"China should do the same." — 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

Dollar holds steady in Asia

TOKYO – The dollar held steady Monday following a surge last week on comments from Fed Chief Janet Yellen as Tokyo shares rebounded after hitting a six-week low.

In midday trading, the greenback fetched ¥102.46, rising from ¥102.23 in New York Friday.

The euro was mixed, buying $1.3801 and ¥141.39, compared with $1.3794 and ¥141.87 in US trade.

Tokyo's Nikkei 225 stock index, which added 1.83 percent by the break, was lifted by the yen's weakening against the dollar, boosting exporters' profitability.

Last week the greenback rose after Yellen said the central bank may raise its ultra-low federal funds rate around six months after winding up its asset-purchase stimulus, expected by the end of the year.

But analysts said the dollar's rise was being capped by fears over the Crimean crisis.

"After having risen on the (Federal Open Market Committee) decision... the dollar/yen has become top-heavy due to the situation in Ukraine," Daiwa Securities said.

The crisis in Europe – which has rattled global financial markets – is set to dominate a nuclear security summit opening in The Hague on Monday.

Russia is facing possible exclusion from the G8 club of rich nations as punishment for its absorption of Crimea following the ouster of Ukraine's pro-Moscow leader last month.

Analysts said the simmering tensions could see traders move back into the yen, which is viewed as a safe-haven unit in times of turmoil or uncertainty.

Forex traders were also watching Chinese data as fresh figures said manufacturing activity contracted in March to its weakest rate in eight months.

HSBC's preliminary purchasing managers index (PMI), which tracks manufacturing activity in China's factories and workshops, fell to 48.1 from a final reading of 48.5 in February, the British bank said in a statement.

A reading above 50 indicates growth, while anything below signals contraction.

But investors took the latest Chinese figures in their stride.

"The whole of Asia seems to have factored in lowered expectations for China's growth," said Yoshihiro Okumura, general manager at Chibagin Asset Management. – Agence France-Presse

source: gmanetwork.com

Wall St ends best year since 1990s with moderate gains

NEW YORK - US stocks closed out their best year in more than 15 on Tuesday, with major indexes advancing throughout 2013 on the back of the Federal Reserve's massive stimulus and expectations for accelerating growth going forward.

Wall Street ended 2013 with its positive momentum intact, advancing in its final trading day of the year on the back of positive consumer confidence data.

The S&P 500 rose 29.6 percent over the year, its best annual performance since 1997, while the Dow climbed 26.5 percent in its best year since 1995. The Nasdaq jumped 38.3 percent, its best year since 2009.

Both the Dow and the S&P 500 finished the final trading day of 2013 at record closing highs.

In a sign of improving sentiment, the CBOE Volatility Index or VIX fell 23.9 percent over the year, the biggest annual drop for the so-called "fear index" since 2009.

All 10 S&P 500 sector indexes ended the year with gains as investors rode the Fed's extraordinary stimulus in a year that had only the slightest of hiccups. Wall Street even weathered a partial shutdown of the US government, as well as the recent announcement that the Fed would trim its monthly bond purchases in response to an improving economic picture.

"This has been a terrific year, with all the concerns we had in January (2013) proving unfounded, and with current economic growth giving us a strong outlook for 2014," said John Carey, portfolio manager at Pioneer Investment Management in Boston.

Trading volume was once again light in US markets, which will be closed Wednesday for the New Year's holiday. Still, investors found reasons to buy after a read on consumer confidence rose more than expected in December.

The S&P/Case-Shiller composite index of home prices in 20 metropolitan areas gained 0.2 percent in October from September, but posted the strongest annualized gain in October in more than seven years.

"There's been a generally positive trend to news, including the confidence report, which bodes well for conditions next year and gives us really no reason to sell," said Carey, who helps oversee $220 billion in assets.

About 63 percent of stocks traded on the New York Stock Exchange closed higher for the day, while 55 percent of the shares traded on the Nasdaq ended in positive territory.

The Dow Jones industrial average gained 72.37 points, or 0.44 percent, to end at 16,576.66. The Standard & Poor's 500 Index advanced 7.29 points, or 0.40 percent, to finish at 1,848.36. TheNasdaq Composite Index rose 22.39 points, or 0.54 percent, to close at 4,176.59.

The Dow also touched an all-time intraday high of 16,588.25 on Tuesday, while the S&P 500 set a record intraday peak of 1,849.44.

In the fourth quarter, the Dow rose 9.6 percent, the S&P 500 gained 9.9 percent and the Nasdaq climbed 10.7 percent. In December alone, the Dow advanced 3 percent, the S&P 500 rose 2.4 percent and the Nasdaq shot up 2.9 percent. It was the fourth straight monthly rally for all three.

Gains in the year were led by consumer discretionary stocks, with the sector index up 40.4 percent. The sectors with the slimmest gains of the year—telecom, which rose 6.6 percent, and utilities, up 16.5 percent—are both considered defensive groups.

Among specific names, Netflix Inc was the S&P 500's biggest gainer, soaring 295.6 percent.Newmont Mining was the index's biggest loser, falling 50.6 percent in 2013. Only 38 stocks in the S&P 500 ended the year in the red.

Few investors expect 2014 to deliver the same scale of returns. According to the most recent Reuters equity poll, the S&P 500 is seen rising to 1,925 by the end of 2014, which represents an upside of 4.1 percent from current levels.

In the corporate arena, Hertz Global Holdings Inc surged 10.5 percent to close at $28.62 after the company said it had adopted a one-year shareholder rights plan in response to "unusual and substantial activity" it has observed in its shares.

Marvell Technology Group Ltd jumped 4.5 percent to end at $14.38 after private equity firm KKR & Co LLP reported a 6.8 percent stake in the chipmaker, according to a regulatory filing.
Twitter Inc broke its steep two-day losing streak, gaining 5.2 percent to close at $63.65. The stock's price had tumbled 17 percent between Thursday and Monday.

About 4.31 billion shares traded on all US platforms, according to BATS exchange data, well below the December average of 5.89 billion shares. —Reuters

source: gmanetwork.com

Fed uncertainty sends the Dow, S&P down for 5th day

NEW YORK - U.S. stocks fell on Thursday, with the Dow and S&P 500 dropping for a fifth straight session after a round of mixed economic data left traders guessing as to when the Federal Reserve would begin to slow its stimulus program.

The Dow and the S&P 500 are in their worst stretch since September. However, the moves have been slight, with the S&P 500 down about 1.2 percent over the period.

Gross domestic product grew at an annualized rate of 3.6 percent in the third quarter, the fastest pace since the first quarter of 2012 and faster than the 3 percent rate that had been expected. Another report showed that the number of Americans filing new claims for unemployment benefits unexpectedly fell last week in a hopeful sign for the labor market - a day ahead of the November nonfarm payrolls report.

Traders have been trying to second-guess how the Fed views strong data and whether the numbers are strong enough for the central bank to slow its $85 billion-a-month bond-buying program, which it said it would do when certain economic metrics meet its targets.

"The growing perception that the Fed will taper sooner rather than later may create some anxious moments in the market, as well as some anxiety for investors," said Clark Yingst, chief market analyst at Joseph Gunnar & Co in New York. "However, we think this is bullish for stocks and that the decline is a buying opportunity."

Expectations that the Fed might start tapering this month were dampened after Dennis Lockhart, the president of the Federal Reserve Bank of Atlanta, said the GDP data "doesn't make a trend and ... doesn't drive me to the conclusion that we've had a breakout in terms of growth."

The Dow Jones industrial average slipped 68.26 points, or 0.43 percent, to end at 15,821.51. The Standard & Poor's 500 Index fell 7.78 points, or 0.43 percent, to finish at 1,785.04. The Nasdaq Composite Index dropped 4.84 points, or 0.12 percent, to close at 4,033.17.

The Dow and the S&P 500 are on track to post their first negative week in nine. Wall Street's recent rally, which took the Dow and the S&P 500 to all-time highs, came mostly on expectations that the Fed would hold steady with its stimulus. The three major U.S. stock indexes have each climbed more than 20 percent this year.

Apple rose 0.5 percent to $567.90 after China Mobile Ltd, the country's largest mobile operator, said it was still negotiating to offer iPhones on its network. A media report had earlier said that the long-awaited agreement had been reached. Earlier, Apple hit a 52-week high just above $575.

But Microsoft fell 2.4 percent to $38 in heavy volume. It was the biggest points decliner by far in the Nasdaq 100 and outweighed Apple's boost.

J.C. Penney Co Inc shares tumbled 8.4 percent to $8.85 after Morgan Stanley reiterated its "underweight" rating on the stock and said November's 10 percent sales growth was not enough to change the company's outlook.

Other major U.S. retailers posted disappointing sales for November as cautious shoppers pinched their pennies at the start of the holiday season.

Costco shares fell 1.6 percent to $120.95 after the warehouse club chain said sales at stores open at least a year rose 2 percent, below the 3.3 percent increase that analysts were expecting.

But the stock of Dollar General Corp jumped 6.1 percent to $59.81 and ranked as the S&P 500's best performer after the discount retailer posted third-quarter earnings and said same-store sales rose 4.4 percent in the same period.

About 64 percent of the stocks traded on the New York Stock Exchange closed lower for the day, while 52 percent of Nasdaq-listed shares ended in negative territory.

About 5.1 billion shares traded on all U.S. platforms, according to BATS exchange data. — Reuters

source: gmanetwork.com