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

 

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Cyclone Cook: Round Up Of This Week’s Weather

One of the significant impacts this week was flooding due to excessive rainfall amounts. Rainfall amounts topped out at 350mm over the past 60 hours in parts of northwest Nelson, with 200mm+ measurements recorded about Coromandel Peninsula, and between 150-200mm in the Kaimai Ranges. Rainfall amounts of between 30-50mm were commonplace elsewhere. More>>

ALSO:

Earlier: Batten Down The Hatches For Cyclone Cook

Although fast-moving, Cyclone Cook will be destructive and MetService Expert Meteorologists have issued Severe Wind Warnings for the whole of the North Island apart from Northland... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news