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

 


While you were sleeping: Dow climbs to record

While you were sleeping: Dow climbs to record

By Margreet Dietz

July 15 (BusinessDesk) - Wall Street rose, pushing the Dow to a record high, as better-than-expected earnings from Citigroup bolstered optimism about the outlook for corporate profit growth in the world’s largest economy.

In late afternoon trading in New York, the Dow Jones Industrial Average climbed 0.73 percent, the Standard & Poor’s 500 index rose 0.51 percent, while the Nasdaq Composite Index added 0.62 percent. 

Gains in shares of UnitedHealth and Visa, up 2.1 and 2 percent respectively, led the advance in the Dow. The Dow set an intraday record of 17,088.43, before paring some of its earlier gains.

Shares of Citigroup added 3.1 percent following its latest quarterly results, which also helped lift other US bank shares and the mood in general.

“The market has more room to run,” Robert Pavlik, who helps oversee US$4.5 billion as chief market strategist at Banyan Partners in New York, told Bloomberg News. “It’s going to be interesting to watch the amount of strength that it carries day to day.”

Also on Monday, Citigroup and the US Justice Department also announced a US$7 billion agreement to settle an investigation into sales of mortgage-backed securities.

US Treasuries slid, pushing yields on the 10-year bonds 3 basis points higher to 2.55 percent.

Investors will scrutinise US Federal Reserve Chair Janet Yellen’s semi-annual policy testimony to Congress for clues about the timing of the next interest rate increase. Yellen will testify to the Senate Banking Committee on Tuesday, and to the House Financial Services Committee on Wednesday.

The American corporate shopping spree - and tax evasion efforts - continued as AbbVie’s efforts to acquire Dublin-based Shire appeared to gain traction. Four earlier bids were rejected. Shire said it was willing to recommend an offer from AbbVie.

Europe’s Stoxx 600 Index increased 0.9 percent, recovering from last week’s slump as concern eased about a flare-up of the region’s debt crisis in Portugal.

Even so, shares of Portugal’s Banco Espirito Santo slumped 7.5 percent. The troubled bank appointed Vitor Bento as CEO on Sunday.

Elsewhere in Europe, the UK’s FTSE 100 and France’s CAC 40 each rose 0.8 percent, while Germany’s DAX jumped 1.2 percent.

A report showed industrial production in the euro zone shrank 1.1 percent in May from the previous month, which was a smaller decline than economists had expected.

European Central Bank President Mario Draghi on Monday told the European Parliament’s economic and monetary affairs committee that policy makers will keep ECB interest rates at current record-low levels for an extended period.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news