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

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 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