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

 


Auckland: Quarterly Update: Rents Stable During Third Quarter

The average weekly rent for a home in Auckland moved less than $1 during the third quarter, ending 30 September at $606.25, according to data from more than 16,000 rental properties managed by Barfoot & Thompson... More>>



Electricity Authority: Review Of Competition In The Wholesale Electricity Market Raises Questions

In March 2021 the Electricity Authority announced it would conduct a review into competition in the wholesale electricity market. The period of the review covers the sustained elevated electricity prices since an unplanned outage at the Pohokura gas facility in Spring 2018... More>>


Government: RSI ‘State Of The Nation’ Report Published
latest research, science and innovation system report card is now available, and outlines how the system is performing, Research, Science and Innovation Minister Megan Woods has announced. “The report seeks to increase transparency, act as a reliable data source and stimulate discussion... More>>


LAWA: New Zealand Lakes Are Diverse In Their Condition And Type

Freshwater scientists have come together through the Land, Air, Water Aotearoa (LAWA) project to summarise the condition of New Zealand’s monitored lakes. They have found a varied picture of lake condition... More>>



Pamu & Westpac: Market-leading Sustainability-Linked Loan

Westpac NZ and Pāmu have signed New Zealand’s most comprehensive Sustainability-Linked Loan to date, also the largest in the agricultural sector, and the first involving a state-owned enterprise. Pāmu, also known as Landcorp, is New Zealand’s biggest farming business. It will borrow $85m from Westpac NZ over three years... More>>


Retail NZ: Some Good News In COVID Announcements, But Firm Dates Needed

Retail NZ is welcoming news that the Government is increasing financial support for businesses in light of the ongoing COVID-19 lockdown, and that retail will be able to open at all stages of the new “Covid Protection Framework... More>>