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

 


While you were sleeping: US manufacturing accelerates

While you were sleeping: US manufacturing accelerates

Feb 21 (BusinessDesk) – Wall Street rose after a gauge of US manufacturing climbed to the highest level in nearly four years, easing concern that weakness in recent data meant the recovery in the world’s largest economy was losing steam.

The Markit Economics preliminary index of manufacturing rose to 56.7 in February, up from a final number of 53.7 in January.

"The manufacturing data is extremely positive, especially coming after a spate of bad news at a time when the Fed seems committed to slowing stimulus," Nicholas Colas, chief market strategist at the ConvergEx Group in New York, told Reuters.

Also positive, jobless claims declined by 3,000 to 336,000 in the week ended February 15.

Separately, the Conference Board’s leading economic index rose 0.3 percent in January, following no change in December.

"The increase … reflects an economy that is expanding moderately, although the pace is somewhat held back by persistent and severe inclement weather in most parts of the country," economist Ken Goldstein said in a Conference Board statement.

"If the economy is going to move on to a faster track in 2014 compared to last year, consumer demand and especially investment will need to pick up significantly from their current trends,” Goldstein said.

In afternoon trading in New York, the Dow Jones Industrial Average gained 0.67 percent, the Standard & Poor’s 500 Index rose 0.58 percent, while the Nasdaq Composite Index advanced 0.49 percent.

Gains in shares of Verizon, last up 3.3 percent, and those of Exxon Mobil, last up 1.7 percent, helped propel the Dow higher.

Shares of Wal-Mart fell 1.8 percent, posting the largest decline in the Dow, after the company predicted full-year profit that failed to meet expectations.

Shares of Facebook slipped, last down 0.8 percent, after the company yesterday said it agreed to buy WhatsApp, a messaging app with 450 million members, for US$19 billion.

“They seem to have made a pretty strong statement with this acquisition,” Debra Aho Williamson, an analyst at EMarketer, told Bloomberg News. “Facebook has come to the realisation that it needs a portfolio of apps to reach people with different use cases, different demographics, or different ways of communicating.”

In China, there were further signs of weakness from the world’s second-largest economy. The purchasing managers’ index from HSBC and Markit Economics fell to of 48.3 in the preliminary February reading, down from January’s final figure of 49.5.

“The building-up of disinflationary pressures implies that the underlying momentum for manufacturing growth could be weakening. We believe Beijing policy makers should and can fine-tune policy to keep growth at a steady pace in the coming year,” Hongbin Qu, chief economist, China & co-head of Asian economic research at HSBC, said in a statement.

In Europe, the Stoxx 600 Index ended the session at 334.78, slightly down from the previous close. The UK’s FTSE 100 both rose 0.2percent, while France’s CAC 40 added 0.3 percent. Germany’s DAX fell 0.4 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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:

Inflation: CPI Increases 0.3 Percent In June Quarter

The consumers price index (CPI) rose 0.3 percent in the June 2014 quarter, Statistics New Zealand said today. This follows rises of 0.3 percent the March quarter and 0.1 percent in the December 2013 quarter. More>>

ALSO:

Half Empty: Dairy Product Prices Drop To Lowest Since December 2012

Dairy product prices fell to the lowest level since December 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and anhydrous milk fat. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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