Home' Trinidad and Tobago Guardian : May 3rd 2015 Contents MAY 3 • 2015 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
STOCKS | SBG9
The stock market bounced
back on Friday as
investors picked up com-
panies that had dropped
earlier in the week. Major
indexes recovered nearly
all their losses from a fall
the day before.
"It's an odd day in the markets," said Jack
Ablin, chief investment officer at BMO Private
Bank. The news out Friday was mostly dis-
appointing, he said. Big corporations' earnings
reports weren't all that good.
Expedia was an exception. The online travel
company turned in sales that topped Wall
Street's estimates, driving its stock up US$7.46,
or eight per cent, to US$101.69.
The Standard & Poor's 500 index climbed
22.78 points, or 1.1 per cent, to finish at
2,108.29. That's after dropping one per cent
the day before.
The Dow Jones industrial average gained
183.54 points, or one per cent, to 18,024.06,
while the Nasdaq composite rose 63.97 points,
1.3 per cent, to 5,005.39.
Charlie Smith, chief investment officer at
Fort Pitt Capital Group, cautioned against
reading too much into a day with light trading.
"The rally is fun," he said, "but it doesn't
The Nasdaq lost 1.7 per cent for the week
as investors sold many of the technology com-
panies that have fared well this year. Strong
gains for Apple and other tech stocks helped
the Nasdaq finally topple a record high last
Friday. So, what changed?
Smith said Apple's earnings had something
to do with it. Apple is big enough that its
moves can swing the Nasdaq higher or lower.
Last week, investors bought Apple's stock in
anticipation of another blowout earnings report
when the tech giant reported results Monday.
In the three days afterward, Apple's stock lost
six per cent.
LinkedIn plunged after the online networking
service warned of weaker earnings in the
months ahead, a result of the stronger dollar
and the company's pending purchase of
Lynda.com, an online learning company. Twit-
ter continued a slump started earlier in the
week when the company turned in disap-
pointing sales and cut its revenue outlook.
Twitter dropped US$1.12, or 3 per cent, to
US$37.84, while LinkedIn lost US$46.92, or
19 per cent, to US$205.21.
Roughly a third of all the companies in the
S&P 500 reported first-quarter results this
week, and the news was mixed. Falling oil
prices and a rising dollar hammered many of
Analysts expect companies in the S&P 500
will say overall earnings inched up 0.6 per
cent compared with the same period of last
year, according to S&P Capital IQ, a provider
of financial information. But revenue is expect-
ed to drop 1.4 per cent.
Ablin said that investors are wrestling with
a slew of diverging trends. Recent reports have
raised concerns about the economy's strength.
On Wednesday, the government said that it
nearly stopped growing in the first three
months of the year. To some investors that's
not such bad news: Weak economic growth
could lead the Federal Reserve to postpone its
plans to raise a key borrowing rate. Record
low interest rates have helped the stock market
soar since the financial crisis.
"Economic data has recently been disap-
pointing," Ablin said, "but that keeps the Fed
In Europe, the only major market open for
trading was in Britain, where the FTSE 100
finished with a gain of 0.4 per cent.
Japan's Nikkei 225 rose 0.1 per cent, and
Australia's S&P/ASX 200 added 0.4 per cent.
New Zealand's benchmark rose 0.1 per cent.
Most markets in Asia and Europe were closed
for the International Workers Day holiday.
Back in the US, government bond prices
sank, pushing the yield on the 10-year Treasury
note up to 2.12 per cent from 2.03 per cent
the day before.
In commodities trading, gold dropped
US$7.90 to end at US$1,174.50 an ounce, while
silver lost 2 cents to US$16.14 an ounce. Copper
added 4 cents to US$2.93 a pound.
Oil fell nearly one per cent Friday, the first
trading day in May, following a gain of more
than 20 per cent the month before. US oil slid
48 cents, or 0.8 per cent, to US$59.15 a barrel.
Brent crude slipped 32 cents, or 0.5 per cent,
to US$66.46 a barrel.
In other trading:
---Wholesale gasoline was barely changed
at US$2.045 a gallon.
---Heating oil crept up 0.2 cent to US$1.982.
---Natural gas rose 2.5 cents to US$2.776 per
1,000 cubic feet.
Trader Timothy Nick works on the floor of the New York Stock Exchange, Monday, April 20,
2015. US stocks are opening higher as more big companies turn in healthy financial results for
the first quarter of the year. AP
Pedestrians stand in front of an electronic stock board of a securities firm in Tokyo showing
Japan's Nikkei 225 closed up 11.62 points or 0.1 per cent at 19,531.63 Friday, May 1, 2015.
Japanese stocks drifted lower Friday after weak US earnings underlined the uncertain economic
outlook and dented Wall Street. Most Asian markets were closed for Labour Day. AP
World stock markets were mostly lower
Thursday after the US economy skidded to a
near halt in the first three months of the year
and Japan's central bank held off from expanding
its monetary stimulus.
KEEPING SCORE: Britain's FTSE 100 rose
0.1 per cent to 6,954.02 while France's CAC 40
slipped 0.1 per cent to 5,033.48. Germany's
DAX edged up 0.1 per cent to 11,442.19. Tokyo's
benchmark dived nearly three per cent. Wall
Street appeared set for a weak start, with Dow
futures down 0.3 per cent. S&P 500 futures
were down 0.2 per cent.
JAPAN ECONOMY: Japan reported that its
industrial output slipped 0.3 per cent in March
from a month earlier and 1.2 per cent from the
year before, on weak demand for electrical
machinery, fuel products and metals. The data
were not as bad as expected however and the
central bank kept its ultra-loose monetary policy
intact despite expectations for stimulus. Bank
of Japan Gov Haruhiko Kuroda remains upbeat
about the prospects for a "moderate recovery,"
despite halting progress toward his two per cent
inflation goal and weakening industrial produc-
tion and household spending.
ASIA S DAY: Japan's Nikkei 225 slid 2.7 per
cent to 19,520.01 and Hong Kong's Hang Seng
slipped 0.9 per cent to 28,133.00. South Korea's
Kospi dropped 0.7 per cent to 2,127.17 and Aus-
tralia's S&P/ASX 200 lost 0.8 per cent to 5,790.
Markets in Taiwan, mainland China and South-
east Asia also fell.
CURRENCIES: The euro rose to $1.119 from
$1.1117 on Wednesday, the currency's highest
level against the dollar in almost two months.
The dollar slipped to 118.92 yen from 119.01
How the Dow Jones industrial
average fared Friday
US stocks closed higher Friday, the first
day of May, erasing much of a loss the day
before. Most Asian and European markets
were closed for a holiday.
The Dow Jones industrial average rose
183.54 points, or one per cent, to close at
The Standard & Poor's 500 index gained
22.78 points, or 1.1 per cent, to 2,108.29.
The Nasdaq increased 63.97 points, or 1.3
per cent, to 5,005.39.
For the week:
The Dow fell 56.08 points, or 0.3 per cent.
The S&P 500 lost 9.40 points, or 0.4 per
The Nasdaq declined 86.70 points, or 1.7
For the year:
The Dow is up 200.99 points, or 1.1 per
The S&P 500 index is up 49.39 points, or
2.4 per cent.
The Nasdaq is up 269.34 points, or 5.7 per
World shares fall after US
reports meager 1Q growth
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