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

 

Season Ends: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news