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

 

Tubes: Tasman Global Access Cable Goes Live

Spark, Vodafone and Telstra have today announced the Tasman Global Access (TGA) cable is officially in service and ready to carry vast quantities of Internet traffic between New Zealand and the world. More>>

ALSO:

Theresa Does: Brexit Letter Sees NZD Touch Week-High Vs GBP On Brexit

The New Zealand dollar rose to a week-high against the British pound and euro after UK Prime Minister Theresa May officially triggered Britain's exit from the European Union. More>>

ALSO:

Statistics: Business Research And Development Up 29 Percent

Computer services and machinery manufacturing firms led the way in an almost 30 percent lift in business spending on research and development (R&D) in 2016, Stats NZ said today. Businesses spent $1.6 billion on R&D in 2016, up $356 million (29 percent) from 2014. More>>

ALSO:

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news