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

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news