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

 

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

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>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news