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

 


While you were sleeping: Wall Street hits record

While you were sleeping: Wall Street hits record

May 28 (BusinessDesk) – Wall Street rose, pushing the Standard & Poor’s 500 Index to a fresh record high, amid a slew of data showing that the US economy is gathering steam after an unusually cold winter.

In the final hour of trading in New York, the Dow Jones Industrial Average rose 0.34 percent, the S&P 500 gained 0.51 percent, while the Nasdaq Composite Index added 0.95 percent. Earlier in the session the S&P 500 touched a record 1,911.61. US markets were closed on Monday for the Memorial Day holiday.

Gains in shares of American Express, up 2.7 percent, and Intel, up 1.2 percent, led the Dow higher.

"It appears that the economy continues to bounce back from the harsh winter," John Ryding, chief economist at RDQ Economics in New York, told Reuters.

Orders for durable goods posted a surprise gain in April, rising 0.8 percent, after an upwardly revised 3.6 percent gain in March, according to Commerce Department data.

Separately, the Conference Board’s consumer confidence index increased to 83 in May, up from 81.7 a month earlier.

"Consumers assessed current conditions, in particular the labour market, more favourably,” Lynn Franco, director of economic indicators at the Conference Board, said in a statement.

There was good news from the housing industry too. The Standard & Poor's/Case-Shiller gauge of home prices in 20 metropolitan areas climbed 12.4 percent in March from a year ago.

Finally, Markit said its preliminary services Purchasing Managers Index rose to 58.4 in May, up from 55.0 in April.

“May’s flash services PMI survey is a further signal that the US economy has regained momentum through the second quarter of the year,” Tim Moore, senior economist at Markit, said in a statement. “New business growth within the service sector reached its fastest for over three years amid the greatest month-on-month acceleration since the index began in late 2009.”

Meanwhile, a US Treasury auction of two-year notes drew solid demand as investors bet that the US Federal Reserve is in no hurry to raise interest rates.

Direct bidders, non-primary-dealer investors that place their bids directly with the Treasury, bought 25.2 percent of the notes, the most since December 2013, according to Bloomberg News.

“We are still in a world where quantitative easing is the law of the land,” Gabriel Mann, a US government-bond strategist at Royal Bank of Scotland Group’s RBS Securities unit in Stamford, Connecticut, told Bloomberg. “The Fed is still committed to holding the front end low until we see substantial growth and a lessening of slack in the labour market. No one is too interested in selling.”

In Europe, the Stoxx 600 Index ended the day with a 0.2 percent advance from the previous close. France’s CAC 40 inched 0.1 percent higher, the FTSE’s 100 Index added 0.4 percent, while Germany’s DAX rose 0.5 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

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:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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