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

 


While you were sleeping: Wall Street rally pauses

While you were sleeping: Wall Street rally pauses

Sep. 3 (BusinessDesk) - Wall Street fell, pushing the Standard & Poor’s 500 Index down from its record-high close, as shares of Home Depot dropped on reports of a credit card data breach, while those of Chevron slipped with the price of oil.

In afternoon trading in New York, the Dow Jones Industrial Average fell 0.35 percent, while the Standard & Poor’s 500 Index slid 0.22 percent. The Nasdaq Composite Index added 0.19 percent.

Declines in shares of Home Depot and Chevron, down 3.1 percent and 1.8 percent respectively, led the Dow lower. Home Depot dropped amid reports hackers may have stolen credit card data from the company’s customers. Shares of Chevron weakened with the price of oil.

Shares of Boeing fell, last down 1.5 percent, after an analyst at New York-based The Buckingham Research Group downgraded the stock outlook to "underperform," the first such rating for Boeing's stock since 2009, according to Reuters.

The S&P 500 declined from its record-high close of 2,003.37 reached last Friday. On Monday, North American markets were closed for the Labor Day holiday.

To be sure, the overall trend is up, according to Morgan Stanley strategist Adam Parker and economist Ellen Zentner.

"Our best guess is that an S&P 500 peak of near 3000 is possible should the US expansion prove to have five or more years left to it, based on 6 percent per annum [earnings per share] growth through that time frame and a 17x price-to-earnings ratio," Parker and Zentner wrote in a note. “As the prolonged expansion becomes more visible, we’d expect a materially higher US stock market.”

The latest economic data showed further strength in US manufacturing, a contrast to the recent trend in the euro zone and China.

The Institute for Supply Management’s index of national factory activity advanced to 59.0 in August, the highest in more than three years, and up from 57.1 in July. Separately, Markit’s US manufacturing purchasing managers index climbed to 57.9 last month, the highest level in more than four years, and up from 55.8 in July.

“The US manufacturing sector has gone from strength to strength this summer, with August’s improvement in business conditions the sharpest for over four years,” Tim Moore, senior economist at Markit, said in a statement.

In Europe, the Stoxx 600 ended the day marginally lower from the previous close at 342.75. The UK’s FTSE 100 inched 0.06 percent higher, while Germany’s DAX rose 0.3 percent. France’s CAC 40 slipped 0.03 percent.

All eyes are on the September 4 meeting of European Central Bank policy makers after President Mario Draghi last month raised expectations for additional stimulus to fight the downward spiral in the euro-zone’s inflation.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Taxing Multinationals: EU Ruling Sours Apple

Shares of Apple slid, down 0.9 percent as of 3.08pm in New York, after the European Commission ruled that Ireland granted the company undue tax benefits of up to 13 billion euros (US$14.5 billion)—"illegal aid” under EU rules that the commission says Ireland now must recover from Apple. More>>

ALSO:

NZX Review: Best Practice Code Recommends Code Of Ethics

NZX, the sharemarket operator, is seeking feedback on proposed changes to its corporate governance best practice code including a published code of ethics, rules about share trading and continuous disclosure, and more transparency over board appointments and chief executive pay. More>>

ALSO:

Auditors:

Signs Of Life? SETI On Russian Space(?) Signal

A star system 94 light-years away is in the spotlight as a possible candidate for intelligent inhabitants, thanks to the discovery of a radio signal by a group of Russian astronomers... Could it be a transmission from a technically proficient society? At this point, we can only consider what is known so far. More>>

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news