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

 


While you were sleeping: Intel shares jump on outlook

While you were sleeping: Intel shares jump on outlook

July 17 (BusinessDesk) - Wall Street rose, lifting the Dow to a fresh record, after Intel posted better-than-expected earnings and Rupert Murdoch’s 21st Century Fox made an unsolicited bid to buy Time Warner.

In late afternoon trading in New York, the Dow Jones Industrial Average climbed 0.42 percent, the Standard & Poor’s 500 index added 0.43 percent, while the Nasdaq Composite Index gained 0.45 percent. 

Shares of Intel jumped 7.8 percent while those of Microsoft gained 3.3 percent, propelling the Dow higher. IBM increased 2.3 percent while Cisco rose 1.3 percent. IBM and Apple put aside decades of animosity by agreeing to work together to bolster their respective appeal to corporate clients.

Earlier in the day, the Dow set an intraday record of 17,138.81.

"Our second-quarter results showed the strength of our strategy to extend the reach of Intel technology from the data center to PCs to the Internet of Things," said Intel CEO Brian Krzanich in a statement.

Analysts agreed that the company’s outlook has improved. At least 19 brokerages raised their price targets on Intel’s stock to US$29-US$45, while two brokerages raised their ratings to an equivalent of "buy", Reuters reported.

Also soaring were shares of Time Warner, last up 16.8 percent, after the company rejected a near US$80 billion stock and cash takeover bid from 21st Century Fox.

“The board is confident that continuing to execute its strategic plan will create significantly more value for the company and its stockholders and is superior to any proposal that Twenty-First Century Fox is in a position to offer,” Time Warner said in a statement.

The latest economic data brought further evidence of strength in the world’s largest economy. US industrial production rose 0.2 percent in June, while a separate report showed the producer price index increased 0.4 percent last month.

"The backdrop for the manufacturing sector is favourable at the start of the third quarter,"Sam Bullard, a senior economist at Wells Fargo Securities in Charlotte, North Carolina, told Reuters.

All 12 Federal Reserve districts indicated that economic activity continued to expand since the previous report, the Fed said in its Beige Book business survey.

“Overall consumer spending increased in every district,” according to the Fed. “Manufacturing activity expanded in all twelve districts.”

In Europe, the Stoxx 600 Index advanced 1.3 percent from the previous close. The UK’s FTSE 100 Index rose 1.1 percent, Germany’s DAX increased 1.4 percent, while France’s CAC 40 climbed 1.5 percent.

The world’s second-largest economy also offered signs of a pick-up. A report showed that China’s gross domestic product rose 7.5 percent in the second quarter from a year earlier, up from 7.4 percent in the previous quarter. It was slightly better than the 7.4 percent rate expected by economists.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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