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

 


While you were sleeping: Wall Street edges to record

While you were sleeping: Wall Street edges to record

July 25 (BusinessDesk) - Wall Street continued its ascent, pushing the Standard & Poor’s 500 Index to another intraday record high, amid solid US jobs data and corporate earnings such as from Facebook.

Initial claims for state unemployment benefits unexpectedly fell, dropping 19,000 to a seasonally adjusted 284,000 for the week ended July 19, according to the Labor Department. It was the lowest level in more than eight years.

Separately, a gauge of US manufacturing held near a four-year high this month. Markit’s seasonally-adjusted preliminary US manufacturing purchasing managers’ index fell to 56.3 in July, down from 57.3 in June.

“US manufacturers are enjoying a summer of scorching growth,” Chris Williamson, chief economist at Markit, said in a statement. “Output grew in July at a rate only just below the four-year peak seen in June as inflows of new orders surged higher again.”

“The growth rebound that the survey has signalled for the second quarter therefore looks to have been sustained into the third quarter,” Williamson said.

In late afternoon trading in New York, the Standard & Poor’s 500 index increased 0.14 percent, while the Nasdaq Composite Index inched 0.09 percent higher. Earlier in the session the S&P 500 touched an intraday record high of 1,991.39.

Shares of Facebook rallied, last up 5.4 percent to US$75.14, after the company’s quarterly sales and profit beat expectations because of increased mobile advertising.

At least 28 brokerages boosted their price targets on the stock, by as much as US$15 to a high of US$100, according to Reuters.

Still, the Dow Jones Industrial Average slipped 0.04 percent, dragged lower by declines in shares of Caterpillar and Boeing.

Shares of Caterpillar fell 3.2 percent after the company predicted full-year profit that failed to meet expectations.

“We are seeing our customers defer maintenance,” Chief Executive Officer Doug Oberhelman said on a conference call discussing a decline in mining equipment sales, Bloomberg News reported. “The bottom is just behind us. Our numbers are minuscule in terms of ticking up, but they are ticking up.”

The latest US economic data were not all positive either, with the housing sector splashing cold water on the recovery. New home sales sank 8.1 percent to a seasonally adjusted annual rate of 406,000 units in June, down from a downwardly revised 442,000 units in May, according to the Commerce Department.

Meanwhile, the International Monetary Fund downgraded its forecast for global growth, predicting a rate of expansion of 3.4 percent for 2014, down from its 3.7 percent estimate in April. It kept intact its forecast for 4 percent growth in 2015.

“Global growth decelerated more than expected in the first quarter of 2014, largely because of temporary setbacks, including a sharp correction to an earlier inventory buildup and the effects of a harsh winter on domestic demand in the United States,” the IMF said in its latest World Economic Outlook.

“Growth also disappointed in China as policies were tightened to dampen credit growth and housing market activity,” the IMF said. “Growth moderated in other emerging markets due to softer external demand and also because of slower-than-expected investment growth.”

In Europe, the Stoxx 600 Index ended the day with a 0.4 percent gain, as did Germany’s DAX. The UK’s FTSE 100 Index rose 0.3 percent, while France’s CAC 40 added 0.8 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Errors Found: Electricity Authority Dumps Transmission Pricing Modelling

The Electricity Authority is ditching the cost-benefit analysis at the heart of its controversial attempt to find a new way to divide up costs for the national grid after finding an expanding range of serious computational errors in the work by Australian consultancy Oakley Greenwood. More>>

ALSO:

New Record: Migrant Arrivals At 129,500 A Year

Annual net migration has been steadily increasing since 2012. "This was mainly due to the rising number of migrant arrivals to New Zealand," population statistics senior manager Peter Dolan said. "Fewer migrant departures also contributed to the increase in net migration." More>>

ALSO:

Launched: NASA's Super Pressure Balloon Takes Flight From NZ

NASA successfully launched its football-stadium-sized, heavy-lift super pressure balloon (SPB) from Wanaka, New Zealand, at10:50 a.m. Tuesday, April 25 (6:50 p.m. April 24 in U.S. Eastern Time), on a mission designed to run 100 or more days floating at 110,000 feet (33.5 km) about the globe in the southern hemisphere's mid-latitude band. More>>

ALSO:

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news