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

 


While you were sleeping: AT&T slips after deal

While you were sleeping: AT&T slips after deal

May 20 (BusinessDesk) – Wall Street inched higher as investors remained cautious with equities trading near record highs, even as companies such as AT&T were confident enough to do some of the largest takeover deals in history.

With about an hour of trading left in the day in New York, the Dow Jones Industrial Average gained 0.14 percent, the Standard & Poor’s 500 Index rose 0.34 percent, while the Nasdaq Composite Index added 0.77 percent. Both the Dow and S&P 500 enjoyed record highs last week.

“This is the least believed bull market that I’ve ever seen,” Robert Doll, chief equity strategist at Nuveen Asset Management in Chicago, told Bloomberg News. “From here it’s earnings, it’s fundamentals, it’s can the economy grow? And my guess is the answer to that question is yes.”

Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia, said stocks remain a relatively appealing place for investors, at least for now.

"The listlessness in the market shows the struggle investors are having right now: Valuations are full but not stretched, and there's a lack of decisive evidence that the economy will kick into higher growth and justify these valuations," Luschini told Reuters. "Equities remain a better choice than bonds or cash this year, but on a near-term basis, they might succumb to gravity."

Gains in shares of Walt Disney, last up 1.1 percent, and JPMorgan Chase, last up 0.9 percent outweighed declines in shares of AT&T, down 1.7 percent, and McDonald’s, down 0.9 percent.

Shares of AT&T were down after the company on Sunday said it agreed to buy DirecTV for US$48.5 billion.

“Strategically, this makes a lot of sense for AT&T,” Jan Dawson, an analyst with Jackdaw Research in Provo, Utah, told Bloomberg News. Gaining a satellite-TV provider “lets them go national with a video offering that matches their wireless reach.”

Shares of Pfizer rose, last up 0.8 percent, after AstraZeneca rejected Pfizer’s latest takeover deal. Shares of AstraZeneca plunged 11.1 percent.

"Pfizer's chances are going down, despite its offer of a higher price," Erik Gordon, professor at the University of Michigan's Ross School of Business, told Reuters.

Shares of other drug makers slid as a result. Share of GlaxoSmithKline fell 1.4 percent while Novartis gave up 0.6 percent.

Europe’s Stoxx 600 Index ended the day with a 0.1 percent decline from the previous close. The UK’s FTSE 100 fell 0.2 percent. Germany’s DAX and France’s CAC 40 each added 0.3 percent.

Investors will eye minutes from the US Federal Reserve’s latest meeting, scheduled to be released on Wednesday. The same day Chairman Janet Yellen is set to deliver a commencement address to NYU graduates at Yankee Stadium.

In Europe, borrowing costs are widely expected to fall in June. Following European Central Bank President Mario Draghi’s signal earlier this month that the bank would be “comfortable” with easing monetary policy in June, 90 percent of economists polled by Bloomberg News now predict the ECB will follow through.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news