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

 


While you were sleeping: US consumer spends big

While you were sleeping: US consumer spends big

Jan 15 (BusinessDesk) – Wall Street climbed, while US Treasuries fell, as the all-mighty American consumer showed she is confident enough in the outlook to spend more money than anticipated, bolstering expectations the world’s biggest economy is gathering steam.

US retail sales excluding automobiles, gasoline, building materials and food services, climbed 0.7 percent in December, following a 0.2 percent advance in November, according to Commerce Department data.

The better-than-expected retail sales data, which came hot on the heels of the surprisingly disappointing government non-farm payrolls December data, released last Friday, restored confidence in the acceleration of the US economic recovery.

“The retail sales are painting a better economic backdrop than payrolls did, and investors are using recent weakness as an opportunity to buy," Mike Gibbs, co-head of the equity advisory group at Raymond James in Memphis, Tennessee, told Reuters.

In afternoon trading in New York today, the Dow Jones Industrial Average added 0.53 percent, the Standard & Poor’s 500 Index advanced 0.86 percent, while the Nasdaq Composite Index jumped 1.4 percent. Gains in shares of Intel, last up 3.4 percent, and those of Microsoft, last up 2.2 percent, propelled the Dow higher.

US Treasuries, however, fell, pushing yields on 10-year bonds three basis points higher to 2.86 percent.

“Another strong data point adds additional credence to the idea the monthly jobs report was an aberration,” Dan Greenhaus, chief global strategist in New York at BTIG, told Bloomberg News. “While one number shouldn’t move the discussion in either direction, a strong retail sales report is much better than a weak one.”

The Fed last month decided to reduce its monthly bond-buying program to US$75 billion this month, from US$85 billion previously. And further easing is ahead, if Fed Bank of Philadelphia President Charles Plosser has his way.

“Chairman Ben Bernanke indicated in his December press conference that if we are making progress in terms of inflation and continued job gains, then the program would be concluded late in 2014,” Plosser said in a speech in Philadelphia today.

“The December employment report has not changed my belief that the economy has already met the criteria of substantial improvement in labour market conditions,” Plosser said. “So my preference would be that we conclude the purchases sooner than this.”

Plosser also said that “the economy is on firmer footing than it has been for the past several years.”

Shares of JPMorgan eked out a 0.2 percent gain after the company reported a 7.3 percent slide in fourth-quarter profit following legal settlement costs. In the past year, the bank has agreed to pay about US$20 billion to settle numerous investigations into its businesses.

Shares of Wells Fargo added 0.3 percent after its quarterly results, while better than expected, also failed to inspire.

In Europe, the Stoxx 600 Index finished the session with a 0.2 percent gain from the previous close. The UK’s FTSE 100 rose 0.1 percent, while France’s CAC 40 and Germany’s DAX both increased 0.3 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news