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

 


While you were sleeping: Wall Street slips from record

While you were sleeping: Wall Street slips from record

Dec 20 (BusinessDesk) – The Dow Jones Industrial Average was steady, after earlier in the session climbing to a record high, as investors digested mixed economic data and the Federal Reserve’s decision to begin easing its pace of bond-buying.

The Fed said yesterday it will cut back its bond purchases to US$75 billion a month from US$85 billion next month. Both the Dow and the Standard & Poor’s 500 Index closed at record highs yesterday.

In afternoon trading in New York today, the Dow was little changed, after earlier hitting an intraday record high of 16,176.68. Gains in shares of Chevron and Walt Disney offset declines in shares of General Electric and Microsoft.

The Standard & Poor’s 500 Index was down 0.13 percent, while the Nasdaq Composite Index shed 0.33 percent.

"The market is adjusting after the rally yesterday,” Doug Foreman, co-chief investment officer of Kayne Anderson Rudnick Investment Management, told Reuters. “It's been a strong year, and I wouldn't be surprised if investors closed out their year today or tomorrow since there isn't much room or news to move higher from here until next year,"

In 2013 so far, the Dow has gained 27 percent, while the S&P 500 rose 29 percent and the Nasdaq has strengthened 36 percent.

The latest economic data were mixed. Initial claims for state unemployment benefits rose 10,000 to a seasonally adjusted 379,000 last week, the highest level since March, according to a Labor Department report.

Meanwhile, sales of previously owned homes fell 4.3 percent in November to an annual rate of 4.90 million units, according to a report by the National Association of Realtors.

“Home sales are hurt by higher mortgage interest rates, constrained inventory and continuing tight credit,” Lawrence Yun, NAR chief economist, said in a statement. “There is a pent-up demand for both rental and owner-occupied housing as household formation will inevitably burst out, but the bottleneck is in limited housing supply, due to the slow recovery in new home construction. As such, rents are rising at the fastest pace in five years, while annual home prices are rising at the highest rate in eight years.”

Separately, the Conference Board’s index of leading indicators climbed 0.8 percent in November, following a 0.1 percent gain in October.

Shares of Facebook fell, last down 1.9 percent, after the company said it will sell 70 million shares including about 41 million shares by Chief Executive Officer Mark Zuckerberg.

“It’s never a positive sign when insiders are dumping massive quantities of stock,” Todd Lowenstein, a portfolio manager with Highmark Capital, told Bloomberg News. Yet “the company is now being added to the S&P 500 Index so there will be large demand for the shares from index buying and index hugging money managers. So it seems this will be absorbed without much disruption.”

In Europe, the Stoxx 600 Index ended the day with a 1.7 percent climb from the previous close, as did Germany’s DAX. The UK’s FTSE 100 gained 1.4 percent, while France’s CAC 40 rose 1.6 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Taxing Multinationals: EU Ruling Sours Apple

Shares of Apple slid, down 0.9 percent as of 3.08pm in New York, after the European Commission ruled that Ireland granted the company undue tax benefits of up to 13 billion euros (US$14.5 billion)—"illegal aid” under EU rules that the commission says Ireland now must recover from Apple. More>>

ALSO:

NZX Review: Best Practice Code Recommends Code Of Ethics

NZX, the sharemarket operator, is seeking feedback on proposed changes to its corporate governance best practice code including a published code of ethics, rules about share trading and continuous disclosure, and more transparency over board appointments and chief executive pay. More>>

ALSO:

Auditors:

Signs Of Life? SETI On Russian Space(?) Signal

A star system 94 light-years away is in the spotlight as a possible candidate for intelligent inhabitants, thanks to the discovery of a radio signal by a group of Russian astronomers... Could it be a transmission from a technically proficient society? At this point, we can only consider what is known so far. More>>

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news