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

 


World Week Ahead: Fed speakers out in force

World Week Ahead: Fed speakers out in force

By Margreet Dietz

May 12 (BusinessDesk) – A selloff in tech stocks did not stop the Dow Jones Industrial Average from ending last week at a record high and investors will eye earnings from companies including Wal-Mart and speeches from US Federal Reserve Chair Janet Yellen and several of her colleagues for direction in the days ahead.

On Friday the Dow edged higher to a record, bolstered by gains in shares of McDonald’s and Home Depot, bringing its increase for the week to 0.43 percent.

However, the Standard & Poor’s 500 index lost 0.14 percent last week, while the Nasdaq Composite index dropped 1.26 percent as investors dumped some of the high-flying momentum tech stocks amid concern their earnings outlook do not justify valuations.

“Names that are trading at reasonable valuations with decent fundamentals are where the money is going,” Michael James, a Los Angeles-based managing director of equity trading at Wedbush Securities, told Bloomberg News.

The coming days will bring the latest earnings from companies including Wal-Mart, Cisco and Deere & Co.

Of the 453 S&P 500 companies that have released results this earnings season, 76 percent have surpassed estimates for profit, while 53 percent have exceeded projections for revenue, data compiled by Bloomberg show.

On Thursday, Federal Reserve Chair Yellen is scheduled to speak at a Small Business Administration event in Washington. In her testimony to Congress last week, Yellen made it clear that while the US economic outlook is improving, risks remain including the housing sector.

First though, Philadelphia Fed President Charles Plosser is set to talk today in Philadelphia. On Tuesday Atlanta Fed Bank President Dennis Lockhart will speak in Riyadh, Saudi Arabia, while Richmond Fed’s Jeffrey Lacker is scheduled to deliver welcoming remarks at a credit markets symposium in Charlotte, North Carolina.

On Thursday New York Fed President William Dudley will speak in New York, and on Friday St Louis Fed President James Bullard will talk on the economy and monetary policy in Little Rock, Arkansas.

The latest data scheduled for release this week include the NFIB small business optimism index, retail sales, and business inventories, due Tuesday; Atlanta Fed business inflation expectations and the housing market index, due Wednesday; the consumer price index, weekly jobless claims, the Empire State manufacturing survey, industrial production, and the Philadelphia Fed survey, due Thursday; and housing starts, due Friday.

In Europe, the Stoxx 600 gained 0.2 percent last week, while Germany’s DAX rose 0.3 percent, and France’s CAC 40 added 0.4 percent. The UK’s FTSE 100 slipped 0.1 percent.

Late on Friday, Bloomberg reported there could be a major revamp by Rupert Murdoch’s European pay-television holdings with BSkyB in the UK acquiring control of Sky Deutschland and Sky Italia. Bloomberg puts the value of the transaction at 10 billion euros.

On the currency market, the euro dropped last week, weakening 0.8 percent against the greenback, after European Central Bank President Mario Draghi on Thursday flagged a potential interest rate cut next month if needed to combat a strong currency. Some say talk is cheap.

Draghi “has a number of times attempted to talk down the euro, and yet they haven't done much,” John Doyle, currency strategist at Tempus in Washington, told Reuters. “The testing of US$1.40 on the euro was right, but until the ECB actually acts, I don't see a sustained rally in the [US] dollar. The market has been calling Draghi's bluff.”

In the coming days, investors will eye the ZEW Center’s May index of German investor confidence, due Tuesday, and the Bank of England’s quarterly Inflation Report, due Wednesday.

On Thursday, a report is expected to show that the euro-zone economy grew 0.3 percent in the first quarter, according to a Bloomberg News survey.

Japan will also release first quarter GDP data on Thursday. Across the Tasman, Tuesday will see the release of the federal budget.

A continuing risk to global markets is what will happen if pro-Moscow separatists proceed with a vote on secession in some parts of eastern Ukraine. It’s not that the outcome is in doubt in votes largely seen as unrepresentative but how Vladimir Putin responds.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news