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

 


While you were sleeping: Berkshire lifts Wall Street

While you were sleeping: Berkshire lifts Wall Street

Aug 4 (BusinessDesk) – Wall Street gained amid solid US corporate earnings including from Warren Buffett's Berkshire Hathaway and as a Portuguese bank bailout diminished concern about another flare-up for the euro-zone's credit crisis.

In afternoon trading in New York, the Dow Jones Industrial Average rose 0.18 percent, the Standard & Poor's 500 Index gained 0.45 percent, while the Nasdaq Composite Index added 0.52 percent.

Gains in shares of Walt Disney and Caterpillar, up 2 percent and 1.1 percent respectively, led the Dow higher.

Last week the S&P 500 posted its largest drop since 2012.

"We're in a very strong bull market right now," Adam Sarhan, chief executive of Sarhan Capital in New York, told Reuters.

Shares of Berkshire Hathaway climbed, up 3 percent, after the company posted late Friday a record net income in the second quarter. Buffett's company also reported that it now has about $US50 billion in cash for acquisitions.

It wasn't all blue skies on Wall Street.

Shares of Michael Kors plunged, down 6.5 percent, after the company said its gross margin will drop this year.

Shares of McDonald's fell, last down 0.4 percent, after the company said sales in China and Japan are suffering a "significant negative impact" because of a food safety scandal in China. The affected markets account for about 10 percent of its total revenue, the fast-food restaurant chain operator said.

"Risks have ticked up in the near-term regarding McDonald's business in China and Japan," Janney Capital Markets analyst Mark Kalinowski wrote in a note, Reuters reported.

In Europe, the Stoxx 600 Index ended the session with a 0.2 percent decline from the previous close. The UK’s FTSE 100 Index inched 0.02 percent lower, while Germany’s DAX shed 0.6 percent. France’s CAC 40 rose 0.3 percent.

A Sentix report showed that investor confidence in the euro zone was worse than expected in August, with the sentiment index declining to 2.7, from 10.1 in July.

Portugal’s PSI 20 Index rose 1 percent after the nation’s central bank announced a US$6.6 billion bailout for Banco Espirito Santo. That move also helped lift other banks across the region.

“The plan carries no risk to public finances or taxpayers,” Carlos Costa, Bank of Portugal’s governor, told reporters in a late night news conference in Lisbon, Reuters reported.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news