US stocks finish lower; Apple -3.2%

NEW YORK–US stocks finished lower Tuesday following a mixed batch of earnings reports and another big decline by technology giant Apple.

The Dow Jones Industrial Average dropped 47.51 points (0.27 percent) to 17,550.69.

The broad-based S&P 500 fell 4.72 (0.22 percent) to 2,093.32, while the tech-rich Nasdaq Composite Index slid 9.84 (0.19 percent) to 5,105.55.

Apple fell 3.2 percent, leaving it down more than 12 percent since its July 21 earnings release. Analysts have cited fears of slowing growth, in part due to weakening conditions in China, a key Apple market.

Insurer Allstate fell 10.2 percent after a rise in payments for auto accidents dented second-quarter earnings, while handbag and accessories retailer Coach rose 3.2 percent after reporting better-than-expected results.

Biopharmaceutical company Baxalta jumped 11.9 percent on news that Dublin-based Shire offered to acquire the company for $30 billion. Shire fell 5.4 percent. Baxalta rejected the offer, saying it “significantly undervalues” the company.

Netflix shot up 7.7 percent as it confirmed it will launch its streaming television service in Japan on Sept. 2.

Priceline and Tesla Motors gained 3.5 percent and 2.4 percent, respectively, ahead of earnings releases Wednesday.

Chinese online marketplace Alibaba rose 1.1 percent on news that it appointed a senior Goldman Sachs banker, Michael Evans, as president, with an emphasis on globalizing the company.

American Express fell 0.3 percent after a US judge threw out a proposed class-action settlement with merchants on litigation over AmEx swiping fee restrictions. AmEx said it was disappointed with the decision.

CVS Health slid 2.5 percent after projecting earnings in the current quarter of $1.27-$1.30 per share, below the $1.37 forecast by Wall Street analysts.

American International Group shed 2.8 percent as net income for the second quarter rose 5.4 percent to $1.9 billion. The insurer also hiked its dividend and authorized up to $5 billion in new share repurchases, moves that BMO Capital Markets said were intended to compensate for a weak underwriting performance in some businesses.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.23 percent from 2.15 percent Monday, while the 30-year advanced to 2.90 percent from 2.86 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks surge on China stimulus, earnings

NEW YORK–US stocks rose sharply Monday on the latest Chinese stimulus measures and some prominent earnings that bested forecasts.

The Dow Jones Industrial Average gained 208.63 points (1.17 percent) at 18,034.93.

The broad-based S&P 500 rose 19.22 (0.92 percent) to 2,100.40, while the tech-rich Nasdaq Composite Index surged 62.79 (1.27 percent) to 4,994.60.

China’s central bank announced Sunday it would cut the level of funds that commercial banks must hold in reserve in the world’s second-largest economy by one percentage point, the second such move this year to boost lending.

Investment bank Morgan Stanley gained 0.6 percent and toymaker Hasbro climbed 12.6 percent after both companies reported better-than-expected first-quarter earnings.

“There’s been a positive tone to earnings so far,” said Dan Greenhaus, chief global strategist at BTIG. “So far they’re coming in a touch better than expected.”

The gains almost reversed sharp losses Friday when fears about a Greek debt default sent global equities tumbling.

Several prominent tech companies bolted higher, including Apple (+2.3 percent), Facebook (+2.9 percent) and Amazon (+3.8 percent).

Industrial real-estate company Prologis added 0.4 percent on news it will acquire KTR Capital Partners for $5.9 billion.

Prologis holds 54 percent of the venture that is buying KTR, with Norges Bank Investment Management, manager of the Norwegian government pension fund, holding 45 percent. The transaction adds KTR properties in leading US markets, including Chicago and Seattle.

Royal Caribbean Cruises sank 8.0 percent after slashing its full-year forecast on the strong dollar and higher fuel prices.

Big-box retailer Costco Wholesale rose 1.2 percent on news it will lift its quarterly dividend from 35.5 cents per share to 40 cents and reauthorize its stock repurchase program.

Online coupon company Groupon rose 0.7 percent after announcing plans to sell a 46 percent stake in its Ticket Monster business in South Korea to a partnership that includes KKR for $360 million. The company also announced a new $300 million share repurchase program.

Bond prices fell. The yield on the 10-year US Treasury rose to 1.88 percent from 1.86 percent Friday, while the 30-year advanced to 2.55 percent from 2.52 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks surge ahead of Fed meeting

NEW YORK–US stocks plowed higher Monday as the dollar retreated and the market looked ahead to a Federal Reserve policy decision in the next two days.

The Dow Jones Industrial Average bolted up 228.11 points (1.29 percent) to 17,977.42.

The broad-based S&P 500 jumped 27.79 (1.35 percent) to 2,081.19, while the tech-rich Nasdaq Composite Index gained 57.75 (1.19 percent) to 4,929.51.

The dollar’s recent gains have raised worries about the drag on US multinationals, but on Monday the euro rose slightly against the greenback, to $1.0590 from $1.0489 Friday.

Chris Low, chief economist at FTN Financial, said data showing tepid growth of just 0.1 percent in US industrial production in February likely lifted confidence the Fed would take a cautious approach to raising near-zero interest rates, probably deciding to hike them later rather than sooner.

The Fed’s two-day monetary policy meeting begins Tuesday.

Valeant Pharmaceuticals International rose 2.5 percent after lifting its offer for Salix Pharmaceuticals from $158 per share to $173 per share, pushing out rival bidder Endo International. Salix gained 2.0 percent, while Endo rose 2.7 percent.

Biotech company Amgen jumped 5.7 percent as it released promising clinical research for its Repatha medication for lowering cholesterol. Other pharma companies also rose, including Celgene (+2.6 percent) and Gilead Sciences (+1.7 percent).

Dow component Procter & Gamble jumped 2.1 percent on a report that it is considering the sale or initial public offering of some beauty brands.

Dow component DuPont dropped 4.3 percent following a downgrade by Bank of America Merrill Lynch.

Bond prices rose. The yield on the 10-year US Treasury fell to 2.08 percent from 2.12 percent Friday, while the 30-year slid to 2.65 percent from 2.70 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks drop as oil hits new multi-year low

NEW YORK–US stocks on Monday opened a busy week of corporate earnings sharply lower as oil prices slumped to fresh multi-year lows.

The Dow Jones Industrial Average dropped 96.53 points (0.54 percent) to 17,640.84.

The broad-based S&P 500 sank 16.55 (0.81 percent) to 2,028.26, while the tech-rich Nasdaq Composite Index tumbled 39.36 (0.84 percent) to 4,664.71.

European benchmark Brent oil closed below $50 a barrel for the first time since April 2009 following a gloomy petroleum-market forecast from Goldman Sachs.

Energy equities fell sharply, including Dow member Chevron and Marathon Oil, by 2.2 percent and 5.1 percent, respectively.

“The market is nervous about lower energy prices and whether they are forecasting a slowdown in global economic growth, and not just a supply-demand imbalance,” said Sam Stovall, chief investment strategist at S&P Capital IQ.

NPS Pharmaceuticals bolted 8.2 percent higher after announcing plans to be bought by Ireland-based Shire for $5.2 billion.

Animal-health company MWI Veterinary Supply gained 8.2 percent on news it will be acquired by pharmaceutical distributor AmerisourceBergen for $2.5 billion. AmerisourceBergen lost 2.2 percent.

Drugmaker Bristol-Myers Squibb advanced 3.1 percent on news that a study for its Opdivo lung cancer drug was stopped because an independent panel found that the medicine succeeded in improving survival rates in patients.

Biotech company Celgene tacked on 2.9 percent as it projected 2015 sales of $9-$9.5 billion, a 22 percent increase from last year.

Jewelry chain Tiffany slumped 14.0 percent as it said sales during the key holiday period fell one percent from last year, with an especially weak performance in Japan. Chief Michael Kowalski characterized the results as “disappointing overall.”

SanDisk, which manufacturers data storage products in consumer electronics, lost 13.9 percent after announcing that it expects fourth-quarter sales of $1.73 billion, down from a previous forecast for $1.80-$1.85 billion.

Bond prices rose. The yield on the 10-year US Treasury fell to 1.91 percent from 1.96 percent Friday, while the 30-year declined to 2.49 percent from 2.54 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks follow European equities lower

New York–Wall Street stocks Tuesday finished lower, following European markets downward after political turmoil in Greece revived worries about the eurozone.

The Dow Jones Industrial Average lost 55.16 points (0.31 percent) to fall below 18,000 at 17,983.07.

The broad-based S&P 500 dropped 10.22 (0.49 percent) to 2,080.35, while the tech-rich Nasdaq Composite Index fell 29.47 (0.61 percent) to 4,777.44.

Equity markets in Britain, France and Germany each fell more than 1.2 percent after Greece’s Prime Minister said a snap election for president planned for Jan. 25 would determine whether the country leaves the eurozone.

US consumer confidence rose in December, while home-price increases were more modest in October, data showed.

Analysts said trade was limited ahead of Thursday’s New Year’s holiday.

“Basically, the volume is light and there is no specific theme that is driving the stock market,” said Hugh Johnson of Hugh Johnson Advisors.

“It’s more or less just trend-less and volatile. I wouldn’t attach much significance to what’s going on today.”

Civeo, which provides workforce accommodations to oil and natural resources companies in Canada and Australia, sank 52.6 percent, citing the weak oil-investment environment. Civeo projected 2015 revenues of $540-$600 million, much below the $817 million forecast by analysts.

Real-estate investment trust American Realty Capital Properties rose 7.4 percent after activist investor Corvex Management disclosed a 7.1 percent stake in the company and said it would press for changes to boost shareholder return.

Bond prices fell. The yield on the 10-year US Treasury fell to 2.19 percent from 2.21 percent Monday, while the 30-year dipped to 2.76 percent from 2.78 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks dip as oil pushes energy sector lower

NEW YORK—A slump in energy prices pushed the stock market back from record levels on Tuesday.

Energy stocks slid as the price of oil resumed its descent. Traders speculated that member nations of the oil-producing group OPEC would fail to agree on production cuts at an upcoming meeting in Vienna on Thursday. Oil has now dropped almost a third from a peak in June.

While lower oil prices are a long-term boon to consumers and industrial companies, they are a drag on stocks in the near term because energy companies account for about 10 percent of the overall market’s profits.

Despite the losses, the major indexes remain close to all-time highs.

Stocks have been drifting gradually higher this month, having rebounded sharply from a slump in October, as investors have grown more confident that actions from central banks around the world will help bolster the global economy. The gains are likely to continue for now, said Jim McDonald, chief investment strategist at Northern Trust.

“People’s sentiment is still pretty conservative,” McDonald said. “That means that the slow-and-steady market can continue longer than people anticipate.”

The Standard & Poor’s 500 index fell 2.38 points, or less than 0.1 percent, to 2,067.03. The Dow Jones industrial average dropped 2.96 points, or less than 0.1 percent, to 17,814.94. The Nasdaq composite gained 3.36 points, or 0.1 percent, to 4,758.25.

Stocks started the day with small gains after a report showed that the US economy grew at a solid 3.9 percent annual rate in the July-September period, faster than the 3.5 percent that was initially reported. The upward revision was due to higher estimates of spending by consumers and businesses, the Commerce Department said.

That positive report was tempered by news that US consumer confidence fell in November. The Conference Board says its consumer confidence index fell to 88.7, down from a seven-year high of 94.5 in October. The decline primarily reflected less optimism in the short-term outlook as consumers expressed less confidence in current business conditions.

Among individual stocks, Pall, a company that makes filters for the food and health care industries, was the leading gainer in the S&P 500. The company’s stock jumped $3.31, or 3.5 percent, to $98 after its earnings beat the expectations of Wall Street analysts.

Energy stocks slid along with oil prices following reports that the world’s biggest producers are unwilling to cut production to help stop a slump in the price of crude. The sector dropped 1.6 percent and is now down 3.2 percent for the year. It’s the only one of the 10 industry sectors in the S&P 500 that is down for the year.

Representatives from Venezuela, Saudi Arabia, Mexico and Russian state oil giant OAO Rosneft met Tuesday ahead of a meeting of the Organization of the Petroleum Exporting Countries in Vienna and didn’t announce any immediate plans to cut output, The Wall Street Journal reported.

Benchmark US crude fell $1.69 to close at $74.09 a barrel on the New York Mercantile Exchange. Brent crude, a benchmark for international oils used by many US refineries, fell $1.35 to close at $78.33 a barrel on the ICE Futures exchange in London.

In metals trading, the price of gold rose $1.40 to $1,197.10 an ounce. Silver rose 18 cents to $16.55 an ounce and copper fell four cents to $2.96 a pound.

US government bond prices rose. The yield on the 10-year Treasury note fell to 2.26 percent from 2.31 percent Monday. The dollar fell to 117.94 yen from 118.28 yen late Monday. The euro rose to $1.2472.

In other energy futures trading on the NYMEX:

— Wholesale gasoline fell 0.1 cent to close at $2.032 a gallon

— Heating oil fell 0.1 cent to close at $2.395 a gallon.

— Natural gas rose 13.1 cents to close at $4.282 per 1,000 cubic feet– Steve Rothwell

source: business.inquirer.net

Dow, S&P 500 at new records; Apple lifts Nasdaq

New York–The Dow and S&P 500 inched to new records Monday ahead of a deluge of US economic data in advance of Thursday’s Thanksgiving holiday.



At the closing bell, the Dow Jones Industrial Average stood at 17,817.06, up 7.00 points (0.04 percent), its third straight record close.



The S&P 500 gained 5.96 (0.29 percent) to 2,069.46, its second straight record, while the tech-rich Nasdaq Composite Index bolted 41.92 (0.89 percent) to 4,754.89 behind a nearly two percent rise in Apple.



The US economic calendar was quiet Monday, but sentiment was lifted by data showing a rise in German business confidence. The next two days will include third-quarter US economic growth, the Conference Board’s index of consumer confidence and several other key reports on the US.



Apple shares jumped 1.9 percent after Susquehanna Financial Group raised its price target for the tech giant, citing strong demand for the iPhone 6.

source: business.inquirer.net

Bank fines help end US stocks’ 5-day record run

NEW YORK–Wall Street’s five-day record run ended Wednesday after huge fines for rigging the foreign exchange market sent the shares of three leading US banks tumbling.

But the Nasdaq ended firmly higher on gains by Apple and Yahoo.

The Dow Jones Industrial Average finished down 2.70 points (0.02 percent) at 17,612.20.

The broad-market S&P 500 fell 1.43 (0.07 percent) to 2,038.25, while the tech-rich Nasdaq Composite added 14.58 (0.31 percent) at 4,675.13.

US, British and Swiss regulators levied $4.2 billion in fines on six of the world’s largest banks for manipulation of the foreign exchange market.

Shares of the three US banks on the list all fell: JPMorgan Chase (-1.3 percent), Citigroup (-0.7 percent) and Bank of America (-0.2 percent).

But the banks and the markets in general shed much steeper earlier losses, demonstrating the continued strength of support after both the Dow and S&P 500 set fresh records for five straight sessions.

But small regional banks generally earned a boost from BB&T’s $2.5 billion takeover of regional bank Susquehanna Bancshares. Susquehanna gained 32.5 percent, while BB&T lost 1.7 percent.

Otherwise market losses were more measured as investors caught their breath after the five-day rally by the Dow and S&P 500.

“We are nearing new highs, we need a pretty good catalyst to move higher,” said Art Hogan, chief market strategist at Wunderlich Securities.

The Nasdaq hit its best level since late March 2000, but remained well shy of the all-time high above 5,048 that March 10, when the index turned downward to what became a severe crash.

Pushing the Nasdaq higher were Apple, up 1.5 percent to its all-time high of $111.25, and Yahoo, which gained 3.2 percent on news of its purchase of video advertising service BrightRoll for $640 million.

Oil company shares lost ground as the price of crude continued its fall. ExxonMobil gave up 1.1 percent, Chevron 0.7 percent, and ConocoPhillips 0.8 percent.

Bond prices were flat after the market was closed Tuesday for a holiday. The yield on the 10-year US Treasury held at 2.36 percent, unchanged from Monday, while the 30-year slipped to 3.08 percent from 3.09 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks reach new records; Obama hits broadband firms

NEW YORK–US stock markets soared to fresh records Monday but Internet broadband carriers were hit hard by President Barack Obama’s call for tough net neutrality rules.

For the fourth straight session, the Dow Jones Industrial Average broke its all-time closing record, gaining 39.81 points (0.23 percent) at 17,613.74.

The S&P 500 added 6.34 (0.31 percent) at 2,038.26, its fourth record close in a row, while the Nasdaq Composite rose 19.08 (0.41 percent) to 4,651.62.

Obama’s statement against allowing large Internet service providers to discriminate between customers on Internet access and speeds was seen as a blow to an industry expecting to earn more by offering better broadband service and performance to preferred customers.

Comcast fell 4.0 percent, Time Warner Cable lost 4.9 percent, Charter Communications lost 6.2 percent, and Verizon fell 0.3 percent.

Nike led the Dow blue chips with a 1.3 percent gain, while Intel continued its slide with another 1.0 percent loss.

Among tech stocks, Amazon gained 1.8 percent while Chinese rival Alibaba soared 4.0 percent.

Merck shares dropped 0.9 percent after the failure of tests for an accelerated hepatitis C treatment.

Shares of rival pharmaceutical maker Gilead, whose hepatitis C treatment is selling strong despite a $90,000-plus cost, added 0.5 percent.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.36 percent from 2.31 percent Friday, while the 30-year pushed to 3.09 percent from 3.05 percent. Bond prices and yields move inversely.

source: business.inquirer.net

Poor earnings at Sprint, Priceline push US stocks lower

NEW YORK–Shares of Sprint and Priceline tumbled Tuesday following disappointing earnings to help push the broad US equity market down, but buyers sent the blue chips of the Dow higher.

The Dow Jones Industrial Average finished up 17.60 points (0.10 percent) at 17,383.84.

The broad-based S&P 500 dropped 5.71 (0.28 percent) to 2,012.10, while the tech-rich Nasdaq Composite Index fell 15.27 (0.33 percent) to 4,623.64.

Sprint sank 16.5 percent as it announced it was slashing 2,000 jobs after reporting a $765 million loss in its fiscal second quarter.

Priceline tumbled 8.4 percent as it forecast fourth-quarter earnings of $9.40-$10.10 per share, well below the $10.91 projected by analysts. Rival online travel companies TripAdivsor (-1.7 percent) and Expedia (-2.4 percent) also fell.

Tuesday’s trade followed lackluster US economic data. New orders for US manufactured goods dropped $2.8 billion, or 0.6 percent, to $499.4 billion in September, the Commerce Department reported.

The US trade deficit widened in September to $43.0 billion as exports slowed and imports remained flat from the previous month.

Chinese e-commerce giant Alibaba rose 4.2 percent after it reported a 15 percent gain in third-quarter profits to $1.1 billion in its first earnings release since going public.

Petroleum stocks fell as US oil prices sank further below $80 a barrel. Dow member Chevron fell 1.2 percent, oil services company Weatherford International lost 7.6 percent and drilling company Transocean dropped 5.3 percent.

Delta Air Lines jumped 4.2 percent after reporting a three percent rise in consolidated passenger unit revenue in October, a closely watched industry benchmark. American Airlines and United Continental both gained 1.7 percent.

Apparel-maker Michael Kors slumped 8.4 percent on a disappointing outlook. The company forecast earnings of $1.31-$1.34 per share, compared with analyst projections for $1.34.

Bond prices rose. The yield on the 10-year US Treasury fell to 2.34 percent from 2.35 percent Monday, while the 30-year dropped to 3.05 percent from 3.07 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks finish flat on mixed data

NEW YORK–US stocks finished little changed Monday following mixed economic data as markets paused after last week’s records.

The Dow Jones Industrial Average fell 24.28 points (0.14 percent) to 17,366.24.

The broad-based S&P 500 dipped 0.24 (0.01 percent) to 2,017.81, while the tech-rich Nasdaq Composite Index gained 8.17 (0.18 percent) to 4,638.91.

The Institute for Supply Management’s purchasing managers’ index for October manufacturing rose to 59.0, with companies saying activity is picking up more than expected going into the yearend holiday shopping season.

But the Commerce Department reported Monday that US construction spending fell a second straight month in September, for a 0.4 percent annual decline, surprising analysts who expected a pickup.

“It’s not surprising (investors) are digesting a little bit after the highs” last week, said Mace Blicksilver, director of Marblehead Asset Management.

Chinese online vending giant Alibaba surged 3.25 percent to a new high, one day ahead of its first earnings after IPO.

Social messaging service Twitter, meanwhile, sank 3.0 percent, and Facebook lost 1.5 percent.

Petroleum industry stocks suffered as US oil prices fell to their lowest level since June 2012.

Dow members ExxonMobil and Chevron lost 1.5 percent and 2.6 percent, respectively, while oil services companies Diamond Offshore and Baker Hughes fell 5.7 percent and 2.0 percent.

Covance shot up 25.9 percent on news that it will be acquired by Laboratory Corp. of America for $5.6 billion to create a giant in healthcare diagnostics. LabCorp fell 7.4 percent.

Sapient soared 42.0 percent on news it will be acquired by French public relations giant Publicis for $3.7 billion.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.35 percent from 2.34 percent Friday, while the 30-year rose to 3.07 percent from 3.06 percent Friday. Bond prices and yields move inversely.

source: business.inquirer.net

Anxiety over company earnings sends US stocks lower

NEW YORK–US stocks Monday finished modestly lower as investor caution returned to the market ahead of Wednesday’s unofficial kickoff of third-quarter company earnings reports.

The Dow Jones Industrial Average lost 17.78 points (0.10 percent) at 16,991.91.

The broad-based S&P 500 dipped 3.08 (0.16 percent) to 1,964.82, while the tech-rich Nasdaq Composite Index suffered deeper losses, falling 20.82 (0.47 percent) to 4,454.80.

Investors are nervous about the upcoming earnings reports in part because of fears that the dollar’s big rise has hit US profits, said Peter Cardillo, chief market economist at Rockwell Global Capital.

“People are going to be anxious to see how the few first major reports indicate the rest of the season, especially among the multinationals, because of the strong dollar,” he said.

Aluminum giant Alcoa reports financial results after the market closes Wednesday, kicking off the earnings season.

Analysts also cited profit taking as a factor in Monday’s dip in the wake of a strong September jobs report that pushed Wall Street stocks sharply higher Friday.

Hewlett-Packard advanced 4.7 percent after announcing it plans to split into two separate, listed companies, one focusing on computers and printers, the other on corporate hardware and services operations.

The move by the world’s second-largest personal computer maker is the latest in the technology sector based on the belief that tightly focused firms perform better.

BD, a medical device manufacturer, plans to acquire rival CareFusion for $12.2 billion, the companies announced. BD jumped 7.9 percent, while CareFusion soared 22.9 percent.

Hilton Worldwide fell 0.5 percent after announcing it would sell the legendary Waldorf Astoria hotel in New York City to Anbang Insurance Group of China for $1.95 billion.

Airline stocks fell on concerns about the Ebola virus. American Airlines dropped 3.6 percent, Delta Air Lines fell 2.3 percent and United Airlines lost 2.8 percent.

Bond prices were mixed. The yield on the 10-year US Treasury fell to 2.42 percent from 2.45 percent Friday, while the 30-year held steady at 3.13 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks rally after strong housing report

NEW YORK–US stocks Wednesday finished with solid gains as a strong housing report helped equities regain territory after losses earlier this week.

The Dow Jones Industrial Average jumped 154.19 points (0.90 percent) to 17,210.06.

The broad-based S&P 500 rose 15.53 (0.78 percent) to 1,998.30, while the tech-rich Nasdaq Composite Index advanced 46.53 (1.03 percent) to 4,555.22.

The Commerce Department reported that sales of new single-family houses surged 18 percent in August to an annual rate of 504,000, their fastest pace in more than six years.

The housing report “certainly helped this morning,” said Michael James, managing director of equity trading at Wedbush Securities.

“As has proven to be the case for the last 18 months, every pullback lasts a few days and people start buying stocks,” James said.

Apple fell 0.9 percent as it halted the update for its iOS software powering the iPhone after users complained of bugs, including one that disabled cellular service. Buyers have also complained of bends in the bodies of the new iPhone 6 and iPhone 6 Plus smartphones when carried in trouser pockets.

Home-goods retailer Bed Bath & Beyond shot up 7.4 percent as its full-year earnings forecast came in at $5.00-$5.08, compared with analyst expectations of $5.01. Comparable sales in the second quarter rose 3.4 percent.

Wal-Mart Stores gained 2.0 percent after it unveiled a venture to offer no-fee electronic checking accounts aimed at customers without traditional bank accounts. Green Dot, a provider of pre-paid debit cards and Wal-Mart’s partner in the service, shot up 24.4 percent.

Gilead Sciences gained 3.2 percent after announcing successful clinical trials of its tenofovir alafenamide treatment for HIV. The biotech company plans to submit regulatory applications for the medications in the US and European Union in the fourth quarter of 2014.

Other biotech companies, including Biogen (+4.2 percent) and Celgene (+3.3 percent), also rose.

Valeant Pharmaceuticals International bolted 6.9 percent higher as it said it expects third-quarter earnings and revenues to be above prior forecasts. The company also released a letter to Allergan offering to “take the temperature down” over its unsolicited offer to buy the Botox maker.

Allergan, which has fought the deal, rose 4.2 percent.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.57 percent from 2.54 percent Tuesday, while the 30-year increased to 3.28 percent from 3.25 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks finish lower as US, EU sanction Russia

NEW YORK–US stocks Tuesday finished lower after the United States and European Union broadened sanctions on Russia, overshadowing US economic data and earnings reports.

The Dow Jones Industrial Average dropped 70.48 points (0.42 percent) to 16,912.11.

The broad-based S&P 500 fell 8.96 (0.45 percent) to 1,969.95, while the tech-rich Nasdaq Composite Index gave up 2.21 (0.05 percent) at 4,442.70.

The EU, which had been more reluctant than the US to boost its sanctions against Russia, imposed new restrictions on the finance, defense and energy sectors to increase the economic cost to Russia for its intervention in Ukraine.

The US followed with new restrictions on Russia’s energy sector, arms industry and financial institutions.

Jack Ablin, chief investment officer at BMO Private Bank, attributed Tuesday’s drop in stocks entirely to the sanctions, which followed mixed corporate earnings reports.

“There’s always economic blowback” from sanctions, he said. “Whenever trade is restrained in any way, that creates dislocations and distortions that are generally negative.”

Dow component Pfizer finished 1.2 percent lower after reporting adjusted earnings of 58 cents per share, a penny above analyst expectations. Analysts noted some of the drugmaker’s most successful sellers during the quarter will suffer as key patents expire.

Fellow drugmaker Merck, also in the Dow, gained 1.1 percent after earnings of 85 cents per share bested expectations by four cents. Better sales of diabetes medication Januvia/Janumet, anti-cholesterol drug Zetia/Vytorin and other medicines helped offset the effect of patent expirations.

UPS fell 3.7 percent as the delivery company said full-year earnings would be $4.90-5.00 per share, down from the April forecast of $5.05-$5.30 per share. The company said it was increasing spending to boost capacity for the November-December peak holiday season.

Wal-Mart Stores dropped 0.4 percent after Goldman Sachs downgraded the giant retailer, concluding that the company’s current investment campaign to bolster its presence online and in the small-store market, while “understandable,” will harm earnings in the short run.

But Goldman upgraded Costco Wholesale in the same report, in part because of its strong international growth potential. Costco shares rose 1.5 percent.

Bond prices rose. The yield on the 10-year US Treasury fell to 2.46 percent from 2.49 percent Monday, while the 30-year dropped to 3.22 percent from 3.26 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks finish higher on Alcoa earnings, Fed minutes

NEW YORK–US stocks Wednesday scored moderate gains following a solid kickoff to earnings season from Alcoa and Federal Reserve meeting minutes signaling an end to its bond-buying program in October.

The Dow Jones Industrial Average gained 78.99 points (0.47 percent) to 16,985.61.

The broad-based S&P 500 rose 9.12 (0.46 percent) to 1,972.83, while the tech-rich Nasdaq Composite Index advanced 27.57 (0.63 percent) to 4,419.03.

Wednesday’s gains snapped a two-day slide.

Alcoa unofficially kicked off second-quarter earnings season after markets closed Tuesday with profits of $138 million, up from a loss of $119 million a year ago. The company benefited from lower costs and said aluminum demand was on track to increase seven percent in 2014.

Alcoa shares shot up 5.7 percent to $15.69.

The Fed minutes of the June meeting of the policy-setting Federal Open Market Committee showed the central bank plans to end its bond-buying stimulus program in October.

But the Fed also expects it would not begin raising its near-zero benchmark interest rate for “a considerable time” after the asset-purchase program ends, “especially if projected inflation continued to run below the Committee’s 2 percent longer-run goal,” the minutes said.

“They still are not in any rush to change monetary policy,” said Peter Cardillo, chief market economist at Rockwell Global Capital.

American Airlines jumped 4.3 percent as it said it expects second-quarter pre-tax profit margins of 12-13 percent, up from the range of 10-12 percent estimated in May.

The Container Store sank 8.4 percent after the company reported a loss of $3.6 million in its fiscal first quarter on a 0.8 percent drop in comparable store sales.

“Consistent with so many of our fellow retailers, we are experiencing a retail ‘funk,’” said Kip Tindell, chief executive of the Container Store.

Salix Pharmaceuticals announced it reached a deal to combine with an Irish-based subsidiary of Cosmo Pharmaceuticals of Italy. The companies said the transaction will enhance Salix’s holdings in treating gastrointestinal disease and result in lower taxes. Salix shares fell 2.9 percent.

Bond prices rose. The yield on the 10-year US Treasury dipped to 2.55 percent from 2.57 percent Tuesday, while the 30-year dropped to 3.36 percent from 3.38 percent. Bond prices and yields move inversely.

source: business.inquirer.net

Dow, S&P 500 hit record highs after ECB stimulus

NEW YORK–The Dow and the S&P 500 Thursday bolted to new records after the European Central Bank launched aggressive measures to stimulate fragile eurozone growth and avert deflation.

The Dow Jones Industrial Average advanced 98.58 points (0.59 percent) to 16,836.11 while the broad-based S&P 500 rose 12.58 (0.65 percent) to 1,940.46.

The tech-rich Nasdaq Composite Index posted strong gains, leaping 44.58 (1.05 percent) to 4,296.23.

US markets reacted enthusiastically to a series of new measures from the ECB, which lowered all three of its key interest rates, including putting the deposit rate into negative territory for the first time, meaning banks will be charged for depositing their excess cash with the central bank.

“Expectations were for them to take action and the market is applauding the action that has been taken,” said David Levy, portfolio manager at Kenjol Capital Management.

Analysts said the ECB’s new push means liquidity will remain at high levels globally even as the Federal Reserve scales back its asset-purchase stimulus.

Levy said a 1.8 percent gain in the Russell 2000, a leading index of small cap stocks, was particularly bullish.

“It shows confidence in the market that investors are willing to invest in riskier stocks,” he said.

Leading banks had a good day, including Dow member JPMorgan Chase (+1.7 percent), Citigroup (+1.6 percent) and Wells Fargo (+1.2 percent).

General Motors fell 0.7 percent after chief executive Mary Barra announced the company fired 15 employees over the deadly ignition scandal and uncovered a pattern of “incompetence and neglect” behind the debacle.

US telecom giant Sprint is nearing a deal valued at about $32 billion to acquire rival T-Mobile, according to the Wall Street Journal and others. Sprint fell 4.0 percent, while T-Mobile dropped 2.3 percent.

Amazon jumped 5.5 percent on anticipation of a June 18 mystery event with founder Jeff Bezos. Topeka Capital Markets said the buzz is that Amazon will launch a smartphone, which could boost subscriptions to its “Prime” service.

Videogame developer Zynga sank 9.2 percent on concerns about a conference presentation from chief Don Mattrick. Mattrick “seemed slightly less upbeat” than normal about the company’s prospects, said a note from Sterne Agee.

Bond prices rose. The yield on the 10-year US Treasury fell to 2.58 percent from 2.61 percent Wednesday, while the 30-year dropped to 3.43 percent from 3.45 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks up ahead of ECB decision; new S&P 500 record

NEW YORK–US stocks rose Wednesday, pushing the S&P 500 to a record close, following mixed economic data a day ahead of the closely watched meeting of the European Central Bank.

The broad-based S&P 500 rose 3.64 points (0.19 percent) to 1,927.88, nearly three points above Monday’s record close.

The Dow Jones Industrial Average rose 15.19 (0.09 percent) to 16,737.53, while the tech-rich Nasdaq Composite Index advanced 17.56 (0.41 percent) to 4,251.64, helped by a 1.1 percent gain in Apple, its biggest component.

Stocks treaded in negative territory after early US economic data showed a drop in private-sector job creation in May and a jump in the trade deficit in April to a two-year high.

But they turned higher after the Institute for Supply Management said services sector activity surged in May.

The US Federal Reserve’s “Beige Book” report was generally positive, saying all 12 districts of the country saw increasing economic activity in recent weeks.

Investors were girding for the ECB to unveil major stimulus actions on Thursday. Analysts said there is a possibility the market will be disappointed if the measures are less aggressive than expected.

Investors are waiting “for hopefully more action than talk from (ECB president) Mario Draghi,” said Jack Ablin, chief investment officer at BMO Private Bank.

Dow member UnitedHealth Group rose 0.8 percent after announcing a 34 percent increase in its quarterly dividend and the renewal of its share repurchase program.

General Motors jumped 3.6 percent on news that chief executive Mary Barra will hold a news conference Thursday to update the ignition-switch recall. GM is expected to release an internal report on why it took so long to recall the vehicles.

Japan’s Dai-ichi Life Insurance announced it was buying US insurer Protective Life for $5.7 billion. Dai-ichi said the deal was aimed at broadening its overseas business beyond Asia by entering the world’s biggest market for insurance sold to consumers.

Protective Life shot up 18.1 percent. Other insurers also gained, including Prudential Financial (+2.4 percent), Met Life (+3.0 percent) and Dow component Travelers Companies (+1.4 percent).

Drugstore chain Walgreens jumped 4.2 percent after reporting that May sales rose 6.0 percent compared with the year-ago period.

Bond prices fell. The 10-year US Treasury rose to 2.61 percent from 2.59 percent Tuesday, while the 30-year increased to 3.44 percent from 3.43 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks finish lower on mixed earnings

NEW YORK—Wall Street stocks Wednesday finished lower following mixed earnings reports as investors looked ahead to major US economic data releases Thursday.

The Dow Jones Industrial Average fell 42.32 points (0.25 percent) to 16,633.18.

The broad-based S&P 500 dipped 2.13 (0.11 percent) to 1,909.78, snapping a two-day streak of record closes.

The tech-rich Nasdaq Composite Index lost 11.99 (0.28 percent) to 4,225.08.

Apparel retailer Michael Kors Holdings reported a jump in fiscal fourth-quarter profits of nearly 60 percent compared with last year, while budget shoe-store chain DSW reported first-quarter earnings of 42 cents per share, six cents below expectations.

Michael Kors rose 1.3 percent, while DSW sank 27.4 percent.

With Wednesday’s calendar empty as far as major economic releases, investors were looking ahead to a busier day Thursday, which features the second estimate of gross domestic product in the first quarter.

Other reports Thursday include pending home sales and weekly jobless claims.

“Today there is a lack of real catalysts,” said Art Hogan, chief market strategist at Wunderlich Securities. “We are looking ahead to tomorrow.”

Canadian firm Valeant Pharmaceuticals International increased the cash part of its unsolicited bid for Allergan, the US maker of Botox, by $10 a share to $58.30 a share. Allergan said it would “carefully review and consider” the revised proposal.

Credit Suisse called Valeant’s latest off “better” but said it “may not be good enough” to seal the deal. Allergan fell 5.4 percent, while Valeant dropped 2.3 percent.

Twitter vaulted 10.7 percent higher following a Nomura upgrade of the stock.

Homebuilder Toll Brothers advanced 2.1 percent as earnings of 35 cents per share bested expectations by nine cents. Toll chief executive Douglas Yearley said the housing market is in a “leveling” period before it accelerates again.

Amazon continued to spar with French book publisher Hachette over pricing, discounting and other terms for selling works. Amazon said it is “not optimistic” about quickly resolving the dispute, while Hachette said it would continue to press for a deal that adequately recognizes authors and publishers. Amazon dipped 0.2 percent.

Bond prices rose. The yield on the 10-year US Treasury fell to 2.44 percent from 2.52 percent Tuesday, while the 30-year declined to 3.29 percent from 3.37 percent. Bond prices and yields move inversely.

source: business.inquirer.net

S&P 500 at new record after solid US data

NEW YORK—The S&P 500 Tuesday notched a record close for the second straight session as US stocks rallied following some solid economic data.

The broad-based S&P 500 gained 11.38 points (0.60 percent) at 1,911.91. On Friday the index closed above 1,900 for the first time; markets were closed Monday for a holiday.

The Dow Jones Industrial Average advanced 69.23 (0.42 percent) to 16,675.50, while the strongest move came from the tech-rich Nasdaq Composite Index, which jumped 51.26 (1.22 percent) to 4,237.07.

Fresh US economic data showed a rise in consumer confidence for May, a surprising increase in durable goods orders for April and an increase in home prices for March on the widely watched S&P/Case-Shiller index.

Wells Fargo Advisors called the economic data “encouraging” in a market note.

Mace Blicksilver, director of Marblehead Asset Management, said the rally in technology stocks was a sign of improving sentiment.

Leading tech companies to gain included Apple (+1.9 percent), Facebook (+3.5 percent), Priceline (+5.2 percent) and Tesla Motors (+2.1 percent).

US chicken producer Pilgrim’s Pride announced a bid to acquire prepared-meats and frozen-foods company Hillshire Brands in a deal worth $6.4 billion, on condition Hillshire scraps its proposed $6.6 billion takeover of Pinnacle Foods. Hillshire said the company stands by its proposed takeover of Pinnacle, but promised to study the offer.

Hillshire shot up 22.1 percent, Pilgrim’s advanced 1.7 percent and Pinnacle slumped 5.4 percent.

Bank of America rose 3.4 percent as it resubmitted its capital plan after the Federal Reserve required the bank to halt shareholder distributions due to a $4 billion overstatement of its capital position.

Botox-maker Allergan released a presentation attacking Valeant Pharmaceuticals in its latest effort to thwart an unsolicited takeover bid. The company raised numerous issues, including Valeant’s ability to promote products of Allergan’s scale and the extensive turnover in Valeant management. Allergan shares lost 1.1 percent, while Valeant fell 2.6 percent.

Bond prices rose. The yield on the 10-year US Treasury dipped to 2.52 percent from 2.54 percent Friday, while the 30-year dropped to 3.37 percent from 3.40 percent. Bond prices and yields move inversely.

source: business.inquirer.net

Asian shares mixed after Dow record close

HONG KONG—Asian shares were mixed on Thursday as most markets stayed shut for public holidays, with Tokyo tracking a rise on Wall Street after the Federal Reserve said the US economy was picking up.

The Nikkei closed 1.27 percent higher, adding 181.02 points to 14,485.13, with some strong corporate earnings and healthy manufacturing data from China adding to the upbeat mood.

Sydney lost 0.73 percent, or 40.27 points, to finish at 5,448.8 despite a solid earnings report from ANZ bank, which said first-half net profit was up 15 percent.

Wellington was 0.45 percent lower, slipping 23.47 points to close at 5,209.21.

Financial markets in China, Hong Kong, India, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Taiwan and Thailand were closed for May Day.

In Japan, investors took their lead from Wall Street, where the Dow Jones Industrial Average closed Wednesday at a fresh record high.

The Fed, concluding a two-day policy meeting, said economic activity had “picked up recently” after a bout of fierce winter weather.

Strong corporate earnings figures also led the Tokyo market higher, with brokerage house Nomura Holdings surging 6.29 percent to 625 yen and Daiwa Securities rising 3.14 percent to 789 after both reported strong earnings from the year ended in March.

Fujitsu jumped 6.33 percent to 638 yen after swinging back to the black for the just-ended fiscal year.

Even so, market analyst Kenichi Hirano of Tachibana Securities said the market remained “trapped in a boxed trading range” due to a general lack of participants and major currency market moves.

“Nevertheless, good earnings reports are welcome, and may help bolster support,” he told Dow Jones Newswires.

In afternoon Tokyo trading, the greenback fetched 102.20 yen from 102.23 yen in New York Wednesday.

The euro rose slightly to $1.3884 and 141.90 yen from $1.3866 and 141.75 yen in US trade.

The yen is under pressure after the Bank of Japan left its monetary policy unchanged but lowered the country’s growth projections, fueling speculation it will expand its huge stimulus drive, which tends to weigh on the currency.

Boost to China manufacturing

BoJ policymakers on Wednesday predicted that the world’s No. 3 economy would expand by 1.1 percent in the fiscal year to next March—down from an earlier 1.4 percent forecast.

But expectations that inflation would come in at 1.3 percent over the same time period were unchanged.

The report was seen as a key measure of whether the BoJ still thinks it can stoke lasting inflation, but there are doubts among a growing number of observers who say the bank will be forced to expand its stimulus program to counter a downturn in the economy.

On Wednesday the BoJ held off from expanding the asset-purchase scheme, awaiting the effects of an April 1 sales tax hike.

In China, the government said Thursday that manufacturing activity had improved in April for a second straight month.

The official purchasing managers index (PMI) was 50.4 in April, the National Bureau of Statistics said in a statement, up from 50.3 in March.

The index tracks manufacturing activity in China’s factories and workshops and is a closely watched indicator of the health of the economy, with a reading of 50 or above indicating growth.

In New York on Wednesday the Dow advanced 0.27 percent to 16,580.84 points, notching its first all-time high of 2014. The last record close, 16,576.66, was set on Dec. 31.

The S&P 500 rose 0.30 percent while the tech-rich Nasdaq Composite Index added 0.27 percent.

Oil prices were down, with West Texas Intermediate (WTI) for June delivery slipping 20 cents to $99.54 a barrel and Brent North Sea crude for June down 34 cents to $107.73 a barrel.

Gold fetched $1,282.76 at 0815 GMT compared with $1,288.50 on Wednesday.

source: business.inquirer.net