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

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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