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

 

While you were sleeping: Wall Street falls

While you were sleeping: Wall Street falls

Aug 8 (BusinessDesk) – Wall Street slid for a third day amid comments from Cleveland Fed President Sandra Pianalto that the US jobs market had shown “meaningful improvement”.

In late afternoon trading in New York, the Dow Jones Industrial Average fell 0.37 percent, the Standard & Poor's 500 Index dropped 0.42 percent and the Nasdaq Composite Index shed 0.40 percent. Shares of Home Depot, down 1.8 percent, Walt Disney, down 1.6 percent, and International Business Machines, down 1.5 percent, paced the decline in the Dow.

"Employment growth has been stronger than I was expecting, and the unemployment rate today is more than half a percent lower than I projected it to be last September," Pianalto said in a speech in Cleveland, Ohio, today. "In light of this progress, and if the labour market remains on the stronger path that it has followed since last fall, then I would be prepared to scale back the monthly pace of asset purchases."

Earlier this earlier this week, Dallas Fed President Richard Fisher, Chicago Fed President Charles Evans and Atlanta Fed President Dennis Lockhart all separately said the central bank could begin easing its bond-buying program as early as next month.

“We still like the outlook for the broad equity market, but near term we’re probably in a trading range pattern until we get greater clarity as to what happens with quantitative easing,” Terry Sandven, chief equity strategist at US Bank Wealth Management in Minneapolis, told Bloomberg News.

Walt Disney's quarterly earnings were hurt by the “The Lone Ranger,” which flopped at the box office.

Shares of Ralph Lauren sank after the company reported an outlook that failed to satisfy investors.

Through Wednesday morning, of the 434 companies in the S&P 500 that had reported earnings, Thomson Reuters data showed that 66.8 percent topped analysts' expectations, while 54.1 percent have reported revenue above estimates.

In Europe, the Stoxx 600 Index ended the day with a 0.2 percent decline from the previous close, while Germany’s DAX weakened 0.5 percent. France’s CAC 40, however, gained 0.2 percent.

In the UK, Bank of England policy makers provided a message that bolstered concern the nation's economic recovery might take longer than anticipated, pushing the FTSE 100 Index 1.4 percent lower and the nation's bond yields higher.

"The Committee intends at a minimum to maintain the current highly stimulative stance of monetary policy until economic slack has been substantially reduced, provided this does not entail material risks to either price stability or financial stability," BOE policy makers said in statement.

"In particular, the [Committee] intends not to raise Bank Rate from its current level of 0.5 percent at least until the Labour Force Survey headline measure of the unemployment rate has fallen to a threshold of 7 percent, subject to the conditions below."

The BOE expects the unemployment rate, at 7.8 percent in the quarter through May, will remain above 7 percent at least until the third quarter of 2016.

Tomorrow, it's the Bank of Japan's turn to offer its latest view on monetary policy.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


MPI: Dry Autumn In Waikato And South Auckland Leads To Drought Classification Drought conditions affecting the primary sector in the Waikato and South Auckland were today classified as a medium-scale adverse event, enabling a package of support for farmers and growers... More>>



Commerce Commission: Invites Feedback On Its Initial Views Of Wellington Airport’s Pricing Decisions

The Commerce Commission is inviting feedback on its initial views, released today, about Wellington Airport’s pricing decisions for specified airport services, such as aircraft parking or airfield and passenger terminal charges, for the period 1 April 2019 to 31 March 2024... More>>



Government: Lower Card Fees On Way For Business, Consumers

A Bill to help lower the fees charged when credit and debit transactions are made, will save New Zealand businesses around $74 million a year... More>>



Barfoot & Thompson: Rents Up By Around 3% In Most Areas

The average weekly rent paid for homes in most areas of Auckland has risen by around 3 percent year-on-year. The figures for end March from more than 16,000 properties... More>>


DoC: Smeagol The ‘Gravel Maggot’ Leaves Its Rare Mark On The Remote West Coast
An extremely rare species of sea slug or ‘gravel maggot’ has been detected for the first time on a remote beach in South Westland... More>>



Immigration: Annual Net Migration Loss Of 7,300

The provisional net loss of 7,300 people in the year ended March 2022 was the lowest net migration for a March year since 2012, Stats NZ said today... More>>