Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


While you were sleeping: Caution ahead of earnings

While you were sleeping: Caution ahead of earnings

Jan 8 (BusinessDesk) – Wall Street retreated, pushing the Standard & Poor's 500 Index from its five-year high, as investors gear up for the fourth-quarter earnings season.

Profits at S&P 500 companies increased an average 2.9 percent in the fourth quarter, according to data compiled by Bloomberg. Excluding financial companies, earnings rose 0.5 percent.

Alcoa is the first company to report after the market closes on Tuesday. Shares were last down 1 percent.

In afternoon trading in New York, the Dow Jones Industrial Average dropped 0.58 percent, while the Standard & Poor's 500 Index shed 0.59 percent, and the Nasdaq Composite Index slid 0.41 percent.

"We have a cautious market entering fourth-quarter earnings season," Peter Cardillo, chief market economist at Rockwell Global Capital in New York, told Reuters. "I think it's going to be a disappointing one this time around."

Others are more optimistic.

“I’m expecting better-than-anticipated earnings," Tom Wirth, who helps manage US$1.6 billion as senior investment officer for Chemung Canal Trust, in Elmira, New York, told Bloomberg News.

Investors who prefer to play it relatively safe can snap up US government debt this week. The US is set to auction US$32 billion in three-year notes on Tuesday, US$21 billion in 10-year debt on Wednesday, and US$13 billion in 30-year bonds on Thursday.

“The auctions will go well at these levels,” David Ader, head of US government-bond strategy at CRT Capital Group in Stamford, Connecticut, told Bloomberg. “We’re finding a footing in here. We’ll probably get more of a concession.”

The KBW Bank Index was last 0.4 percent lower. Ten US mortgage servicers including Citigroup, Bank of America and JPMorgan agreed to pay a combined US$8.5 billion under a deal that will end case-by-case reviews of foreclosures.

In a statement, Bank of America agreed to a US$11.7 billion package aimed at resolving most mortgage disputes with Fannie Mae.

Meanwhile, banks won a reprieve of four more years to meet international liquidity requirements from global central bank chiefs in an effort help propel the pace of economic recovery.

Shares of Amazon gained, last up 3 percent, after Morgan Stanley upgraded the world’s largest online retailer.

In Europe, the Stoxx 600 Index ended the day with a 0.4 percent decline from the previous close, which was its highest level in nearly two years. National benchmark stock indexes also fell in London, Frankfurt and Paris, easing 0.4 percent, 0.6 percent and 0.7 percent respectively.

The euro, however, managed to hold above its 50-day moving average against the greenback, a positive sign. The single currency was last up 0.2 percent to US$1.3101.

“The euro simply didn’t break much lower and stayed quite nicely around the US$1.30 level,” Sebastien Galy, a senior foreign-exchange strategist at Societe Generale in New York, told Bloomberg. “The temptation therefore is to try to push it a little bit higher.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news