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

 


While you were sleeping: US services disappoint

While you were sleeping: US services disappoint

Jan 7 (BusinessDesk) – Wall Street dropped after disappointing data for the US services industry illustrated that the road to recovery in the world’s largest economy has some potholes.

The Institute for Supply Management’s non-manufacturing index slid to 53 in December from 53.9 in November, surprising economists, who had called for an acceleration in the rate of growth.

"We think the economy is on track and in recovery mode, and it isn't unusual to see periodic weak reports," David Carter, chief investment officer at Lenox Wealth Advisors in New York, told Reuters. "ISM was a bit weak but the ongoing trend supports an ongoing recovery."

In contrast to the services data, factory orders increased 1.8 percent in November, according to Commerce Department data, which was in line with expectations.

In afternoon trading in New York today, the Dow Jones Industrial Average slid 0.34 percent, while the Standard & Poor’s 500 Index fell 0.29 percent and the Nasdaq Composite Index dropped 0.46 percent.

Declines in shares of DuPont, last 1.3 percent weaker, and Caterpillar, last down 1.2 percent, paced losses in the Dow.

US Treasuries received a boost from the data showing weakness in parts of the American economic recovery. Yields on the benchmark 10-year bond dropped four basis points to 2.97 percent.

The US Senate is expected to approve Janet Yellen as the next Chairman of the Federal Reserve today. Ben Bernanke’s second four-year term expires on January 31.

Shares of Twitter sank, last down 6.1 percent, after Morgan Stanley downgraded its rating on the stock to underweight.

“As competition for online ad dollars intensifies, we guide investors to Google and Facebook, dominant platforms with more attractive risk/reward,” Scott Devitt, an analyst at Morgan Stanley, in a note, according to Bloomberg News. “In our view, success is far from guaranteed at this early stage.”

In Europe, the Stoxx 600 Index ended the session with a 0.2 percent decline from the previous close. The UK’s FTSE 100 finished steady, Germany’s DAX edged 0.1 percent lower, while France’s CAC 40 fell 0.5 percent.

A Reuters survey found that OPEC's oil output fell in December to the lowest since May 2011. OPEC output averaged 29.53 million barrels per day last month, down from 29.64 million barrels per day in November, according to the survey based on shipping data and information from sources at oil companies, OPEC and consultants.

"Supply issues are still in the spotlight," Carsten Fritsch, analyst at Commerzbank, told Reuters. "In terms of Libya, it is too early to say if production levels will stabilise further."

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news