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

 


While you were sleeping: Wall Street slips

While you were sleeping: Wall Street slips

April 24 (BusinessDesk) – Wall Street fell as disappointing earnings from companies including AT&T made investors cautious in a market trading near record highs.

Later on Wednesday, Apple and Facebook are scheduled to report their quarterly results.

In afternoon trading in New York, the Dow Jones Industrial Average slipped 0.11 percent, the Standard & Poor’s 500 Index fell 0.18 percent, while the Nasdaq Composite Index dropped 0.74 percent.

In the Dow, declines in shares of AT&T and Verizon, down 3.5 percent and 1.1 percent respectively, outweighed gains in shares of Boeing and Travelers, up 2 percent and 1.4 percent respectively. AT&T shares suffered amid concern about the company’s profit outlook.

“These next few days are the most important of the earnings season as some big bellwethers report,” Heinz-Gerd Sonnenschein, an equity market strategist at Deutsche Postbank, told Bloomberg News. “Earnings have not been great this quarter. Expectations had already been brought down quite dramatically and profit growth is weak year-on-year. The S&P 500 is holding up, but investors will need more of a signal to start buying into the market.”

It wasn’t all disappointment. Boeing posted quarterly results and a full-year outlook that reassured investors.

"We think investors will be breathing a sigh of relief," on free cash flow, Rob Stallard, analyst at RBC Capital Markets, said in a note about the air plane maker, according to Reuters. "The actual result has turned out far better than some feared."

Markit Economics’ preliminary US manufacturing index slipped to 55.4 in April from a final reading of 55.5 in March.

“Manufacturers reported a solid start to the second quarter, with output growing at its fastest pace for over three years,” Chris Williamson, chief economist at Markit, said in a statement. “The survey bodes well for further robust economic growth in the second quarter.”

The US housing market, however, showed signs of weakness. Sales of new homes posted a surprise drop, slumping 14.5 percent to a 384,000 annualised pace in March, the lowest level in eight months.

"The weak tone of this report is a bitter pill for those, including ourselves, who have been looking for signs of a spring thaw in the housing recovery," Millan Mulraine, deputy chief economist at TD Securities in New York, told Reuters.

In Europe, the Stoxx 600 Index finished the day with a 0.6 percent slide from the previous close. The UK’s FTSE 100 edged 0.1 percent lower, Germany’s DAX fell 0.6 percent and France’s CAC 40 decreased 0.7 percent.

The Markit Eurozone PMI composite output index rose to 54.0 in April, up from 53.1 in March, the highest since May 2011.

“The euro zone has started the second quarter on a solid footing,” Markit’s Chris Williamson said in a statement. “A welcome quickening in the pace of growth of business activity in April means the region is expanding at the fastest rate for almost three years.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

OceanaGold: Man Killed In Waihi Mine Accident

A 29-year-old man had died following a work place accident at OceanaGold mine, Waihi last night. The man was killed after the front end loader he was in rolled down a slope. The accident happened at approximately 6.30pm on Thursday night. More>>

ALSO:

Constructing Consent: Annual Housing Consents Highest In Over A Decade

More than 29,000 new homes gained building consent in the year to June 2016, up 16 percent from the previous June year, Statistics New Zealand said today. More>>

ALSO:

War Against Weevil For Future Peas: “No Peas, No Weevil” Ban Now In Place In Wairarapa

The Ministry for Primary Industries (MPI) has today placed a ban on growing peas within a specified area and placed controls on moving pea material (seed and untreated pea straw) within, in and out of this area for the next 2 years. More>>

ALSO:

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news