Home' Trinidad and Tobago Guardian : April 12th 2015 Contents APRIL 12 • 2015 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
STOCKS | SBG9
US stocks advanced Fri-
day, capping off a sec-
ond straight weekly
advance for the market.
Investors were encour-
aged by the latest cor-
porate deal news, that
General Electric would
be selling its long-struggling lending busi-
Investors are turning their focus to next
week, when corporate earnings ramp up. So
far the outlook isn t encouraging. With eco-
nomic sluggishness in the U.S. and Europe,
as wells the rapid appreciation of the dollar,
analysts expect first-quarter results to be down
4.6 per cent.
"Earnings are not going to be down because
the US economy is struggling," said James Liu,
global market strategist at JPMorgan Funds.
"It s going to be because of what has hap-
pened in energy and the dollar."
Next week the nation s biggest banks will
report their results, including Bank of America,
JPMorgan Chase, Wells Fargo and Goldman
Sachs. Thirty-five of the members of the Stan-
dard & Poor s 500 will report their results, as
well as seven members of the Dow Jones indus-
On Friday the Dow rose 98.92 points, or
0.6 per cent, to 18,057.65. The S&P 500 rose
10.88 points, or 0.5 per cent, to 2,102.06 and
the Nasdaq composite rose 21.41 points, or
0.4 per cent, to 4,995.98.
General Electric soared after the company
said it would sell most of its lending arm,
known as GE Capital, and shift its focus back
to its industrial business.
GE s stock jumped US$2.78, or 11 per cent,
to US$28.51, making it the biggest gainer in
the Dow and the S&P 500.
GE is known for making jet engines, light
bulbs and other electronics, but a significant
part of the company s business has been
financing. GE Capital was a huge business
until the financial crisis, when new regulations
made being non-bank company in the lending
business more difficult. GE spun off its credit
card operation into a new company last year
called Synchrony Financial.
It was a solid week for the market overall.
The Dow and S&P 500 each rose 1.7 per cent,
while the Nasdaq rose 2.2 per cent. The US
stock market has not had two straight weeks
of gains since mid-February.
Most of this week s gains can be attributed
to the Federal Reserve. After the disappointing
March jobs report released April 3, traders
now believe that the nation s central bank is
not going to raise interest rates until September
instead of the originally anticipated June time-
William Dudley, president of the Federal
Reserve s New York branch, said Monday that
the Fed s rate increases would be "shallow"
when he cited the recent weak economic data
including the jobs report.
"I think we are still looking at two rate hikes
this year, but they will likely be later this year,"
JPMorgan s Liu said.
Bond prices rose. The yield on the 10-year
Treasury note fell to 1.95 per cent. The dollar
edged down to 120.20 yen from 120.57 yen
while the euro fell to US$1.0597 from
In energy markets, the price of oil rose Friday
after a closely-watched count of working drill
rigs declined more sharply than expected, sug-
gesting supplies will soon fall.
Benchmark US crude rose 85 cents to close
at US$51.64 a barrel in New York. Brent crude,
a benchmark for international oils used by
many U.S. refineries, rose US$1.30 to close at
US$57.87 in London.
In other futures trading on the NYMEX:
• Wholesale gasoline rose 4.8 cents to close
at US$1.807 a gallon.
• Heating oil rose 3.9 cents to close at
US$1.766 a gallon.
• Natural gas fell 1.7 cents to close at US$2.511
per 1,000 cubic feet.
In metals trading, gold rose US$11 to
US$1,204.60 an ounce, silver rose 21 cents to
US$16.38 an ounce and copper edged up half
a penny to US$2.73 an ounce.
Asian shares were mixed Thursday, with gains supported by lower oil
prices, firmness in US markets and strong buying in Hong Kong by
mainland Chinese investors.
KEEPING SCORE: Japan s Nikkei 225 stock index rose 0.6 per cent to 19,909.26,
tapping fresh 15-year highs as the Japanese yen softened against the US dollar.
Hong Kong s Hang Seng index jumped 3.4 per cent to 27,136.37, breaching seven-
year highs. South Korea s Kospi fell 0.2 per cent to 2,054.49, while Australia s
S&P ASX/200 slipped 0.4 per cent to 5,938.80. Shares in Southeast Asia were
mixed, while China s Shanghai Composite fell 1.2 per cent to 3,946.74.
HONG KONG: Hong Kong shares rose after mainland Chinese investors bought
heavily, pushing the benchmark up 6.3 per cent before it lost some ground on
profit-taking. Chinese are shifting investments into Hong Kong, which is seen
as a bargain following rallies in mainland Chinese markets that have made shares
in Shanghai and Shenzhen relatively expensive.
GLOBAL DEALMAKING: Shares were boosted by news that oil company
Royal Dutch Shell had agreed to buy BG Group for US$69.7 billion in cash and
stock. A revival of major acquisitions has yielded almost US$1 trillion in deals
this year, according to data provider Dealogic. The premiums typically paid in
such transactions tend to raise share prices. AP
A man looks at an electronic stock indicator of a securities firm in Tokyo on Thursday, April 9, 2015 as Japan's
Nikkei 225 stock index, top centre, rose 117.63 points to 19,907.44, tapping fresh 15-year highs as the
Japanese yen softened against the US dollar. Asian shares were mixed Thursday, with gains supported by
lower oil prices, firmness in US markets and strong buying in Hong Kong by mainland Chinese investors. AP
The Dow Jones industrial average rose
98.92 points, or 0.6 per cent, to 18,057.65.
The Standard & Poor's 500 index added
10.88 points, or 0.5 per cent, to 2,102.06.
The Nasdaq composite gained 21.41 points,
or 0.4 per cent, to 4,995.98.
For the week:
The Dow was up 294.41 points, or 1.7 per
The S&P 500 was up 35.10 points, or 1.7 per
The Nasdaq gained 109.04 points, or 2.2 per
For the year:
The Dow is up 234.58 points, or 1.3 per cent.
The S&P 500 index is up 43.16 points, or 2.1
The Nasdaq is up 259.92 points, or 5.5 per
US close higher
week; GE soars
on deal news
Asian shares mixed; Hong Kong,
Japan benchmarks surge
Specialist Patrick King, centre, works with traders on the floor of the New York Stock Exchange,
at the closing bell, Friday, March 20, 2015. Stocks advanced Friday, capping a strong week,
helped by a recovery in the price of oil and earnings from Olive Garden owner Darden
Restaurants and sportswear giant Nike. The Nasdaq composite index inched closer to its all-
time high set at the height of the dot-com bubble. AP
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