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


While you were sleeping: Trump Jr shakes Wall St

While you were sleeping: Trump Jr shakes Wall St

By Margreet Dietz

July 12 (BusinessDesk) - Wall Street was mixed, recovering from an earlier decline amid fresh concerns about ties between President Donald Trump’s administration and Russia.

The Dow Jones Industrial Average erased about 160 points in 20 minutes and volume in the most widely traded S&P 500 futures tripled, according to Bloomberg, as Donald Trump Jr released emails from last year showing he welcomed the fact that a Russian prosecutor offered information that would “incriminate” Hillary Clinton and “would be very useful to your father” as “part of Russia and its government’s support for Mr Trump.”

In 3.23pm trading in New York, the Dow Jones Industrial Average added 0.09 percent, while the Nasdaq Composite Index rose 0.31 percent. In 3.08pm trading, the Standard & Poor’s 500 Index slipped 0.07 percent.

"I think people are worried that it just means more political uncertainty, and sort of a continuation of the stalemate in Washington, a continuation of the delay in trying to get the Trump agenda passed through Congress," Robert Pavlik, chief market strategist at Boston Private Wealth in New York, told Reuters.

US Treasuries advanced, pushing yields on the 10-year note one basis point lower to 2.36 percent, while the greenback weakened.

Also, Federal Reserve Chair Janet Yellen is set to deliver her semiannual testimony to Congress, speaking before the House Financial Services Committee on Wednesday and before the Senate Banking Committee on Thursday.

"The semi-annual monetary policy testimony has often been a big deal for the markets," Scott Brown, chief economist at Raymond James in St Petersburg, Florida, told Reuters. "I think there may be some fears that she's going to come out relatively hawkish."

The Dow inched higher as gains in shares of General Electric and those of Boeing, recently up 1.2 percent and 1.1 percent respectively, outweighed falls in shares of Nike and those of Pfizer, recently 0.9 percent and 0.8 percent weaker respectively.

Shares of Snap dropped, trading 8.6 percent weaker at US$15.53 as of 3.23pm in New York, after Morgan Stanley downgraded its rating on the stock as well as its price target, cutting the latter from US$28 to US$16. Morgan Stanley was the lead underwriter for Snap’s initial public offering earlier this year.

"We have been wrong about Snap's ability to innovate and improve its ad product this year (improving scalability, targeting, measurability, etc.) and user monetisation," Morgan Stanley analyst Brian Nowak wrote in a note, according to media reports. "Snap's ad product is not evolving/improving as quickly as we expected and Instagram competition is increasing."

In Europe, the Stoxx 600 Index ended the session with a 0.7 percent drop from the previous close. The UK’s FTSE 100 Index fell 0.6 percent, France’s CAC40 Index slid 0.5 percent, while Germany’s DAX Index slipped 0.1 percent.



© Scoop Media

Business Headlines | Sci-Tech Headlines


Superu Report: Land Regulation Drives Auckland House Prices

Land use regulation is responsible for up to 56 per cent of the cost of an average house in Auckland according to a new research report quantifying the impact of land use regulations, Finance Minister Steven Joyce says. More>>


Fletcher Whittled: Fletcher Dumps Adamson In Face Of Dissatisfaction

Fletcher Building has taken the unusual step of dumping its chief executive, Mark Adamson, as the company slashed its full-year earnings guidance and flagged an impairment against Australian assets. More>>


No More Dog Docking: New Animal Welfare Regulations Progressed

“These 46 regulations include stock transport, farm husbandry, companion and working animals, pigs, layer hens and the way animals are accounted for in research, testing and teaching.” More>>


Employment: Most Kiwifruit Contractors Breaking Law

A Labour Inspectorate operation targeting the kiwifruit industry in Bay of Plenty has found the majority of labour hire contractors are breaching their obligations as employers. More>>


'Work Experience': Welfare Group Opposes The Warehouse Workfare

“This programme is about exploiting unemployed youth, not teaching them skills. The government are subsidising the Warehouse in the name of reducing benefit dependency,” says Vanessa Cole, spokesperson for Auckland Action Against Poverty. More>>


Internet Taxes: Labour To Target $600M In Unpaid Taxes From Multinationals

The Labour Party would target multinationals operating in New Zealand to ensure they don't avoid paying tax if it wins power and is targeting $600 million over three years through a "diverted profits tax," says leader Andrew Little. More>>