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

 


While you were sleeping: Wall Street tumbles

While you were sleeping: Wall Street tumbles

April 11 (BusinessDesk) – Wall Street slumped as investors sold, yet again, biotech and internet stocks heading into the quarterly US earnings season, while Bed Bath & Beyond shares took a beating following disappointing results.

Shares of Bed Bath & Beyond plunged 6 percent after the company reported quarterly earnings and provided an outlook that both fell short of expectations.

In afternoon trading in New York, the Dow Jones Industrial Average dropped 1.35 percent, the Standard & Poor’s 500 Index shed 1.59 percent, while the Nasdaq Composite Index sank 2.74 percent.

Leading the declines in the Dow were shares of American Express and Walt Disney, down 3.1 percent and 2.9 percent respectively. Shares of McDonald’s and AT&T were the only two Dow members that gained, up 1.1 percent and 0.5 percent respectively.

“The rotation is out of some of the higher-growth, higher-momentum areas of the market, and until we get earnings visibility, we could see protracted weakness," Eric Teal, chief investment officer at First Citizens Bancshares in Raleigh, North Carolina, told Reuters.

The Nasdaq biotechnology index plunged more than 5 percent, on track for its biggest one-day slump in nearly three years.

Other stocks bearing the brunt of the sell-off included Facebook and Netflix, both down about 5 percent.

Solid US jobs data failed to help the mood on Wall Street today but did underscore the improved state of the labour market. Initial claims for state unemployment benefits dropped 32,000 to a seasonally adjusted 300,000 for the week ended April 5, according to the Labor Department. That was the lowest level since May 2007.

It turned out to be a good day for the US to auction US$13 billion in 30-year bonds.

“We’ve seen a significant retracement in equity prices, which spurred a flight-to-quality bid in the Treasuries markets,” Ian Lyngen, a government-bond strategist at CRT Capital Group LLC in Stamford, Connecticut, told Bloomberg News.

In Europe, the Stoxx 600 Index ended the day with a 0.5 percent drop from the previous close, as did Germany’s DAX. France’s CAC 40 fell 0.7 percent. The UK’s FTSE 100 bucked the trend, closing up 0.1 percent. The Bank of England kept its benchmark interest rate at a record low today, as had been widely predicted.

China’s exports and imports unexpectedly declined last month, data showed today. The country’s overseas shipments fell 6.6 percent from a year earlier, while imports slumped 11.3 percent, boosting concern about sagging growth in the world’s second-largest economy.

Even so, Chinese Premier Li Keqiang ruled out major stimulus to fight short-term dips in growth, saying that job creation was the government's policy priority, Reuters reported.

"We will not take, in response to momentary fluctuations in economic growth, short-term and forceful stimulus measures," Li said in a speech at an investment forum on the southern island of Hainan. "We will instead focus more on medium- to long-term healthy development."

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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:

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:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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