Home' Trinidad and Tobago Guardian : July 19th 2015 Contents JULY 19 • 2015 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
STOCKS | SBG9
A strong week fizzled to a close on Friday as the stock
market eked out a small gain. But a few companies made big
moves. Google surged after reporting strong results, pushing
the Nasdaq to another record high.
It was a quiet end to an eventful week. Markets around the
world rallied on Monday after Greece and its creditors agreed
to a broad framework for a new loan program. Stronger quarterly
earnings reports from a range of big U.S. companies, including
Citigroup and JPMorgan Chase, added more encouragement.
"It appears the sky is clearing," said Linda Duessel, senior
equity strategist at Federated Investors.
Before this week, concerns about China's plunging stock
market and the prospect of Greece leaving the euro "had been
bogging us down," she said.
The Standard & Poor's 500 index edged up 2.35 points, or
0.1 %, to close at 2,126.64. The broad-market measure finished
the week with a gain of 2.4 %, its best performance in four
The Nasdaq rose 46.96 points, or 0.9 %, to 5,210.14, closing
out its best week in nine months. The Dow Jones industrial
average lost 33.80 points, or 0.2 %, at 18,086.45.
Google jumped after reporting profits and sales that topped
analysts' forecasts late Thursday. The results ended six con-
secutive quarters in which Google's earnings fell short of
analysts' targets. Google rose US$97.84, or 16 %, to US$699.62.
Earnings reports out this week have looked better than Wall
Street expected. Analysts forecast that second-quarter earnings
will shrink 3.3 % compared with the prior year, according to
S&P Capital IQ. Last week, the prediction was for a drop of
Greece's deal cleared another hurdle on Friday when German
lawmakers overwhelmingly backed it. The European Union
also said it would get Athens enough money for it to keep
making its debt payments.
Europe's major markets finished mixed after rallying earlier
this week. Germany's DAX lost 0.4 % while France's CAC
edged up 0.1 %. Britain's FTSE 100 slipped 0.3 %.
Back in the US, Comerica reported a drop in quarterly earn-
ings, partially a result of the Dallas-based bank setting aside
more money to cover losses on loans to oil companies. The
news drove Comerica's stock down US$3.19, or 6.3 %, to
Bond prices barely moved, leaving the 10-year Treasury
note at 2.35 %. The dollar dropped to 124.06 yen while rising
to US$1.0838 for every euro.
In commodities trading, precious and industrial metals sank.
Gold fell US$12 to settle at US$1,131.90 an ounce, while silver
sank 15 cents to US$14.92 an ounce. Copper fell 3 cents to
US$2.50 a pound.
Benchmark US crude oil fell two cents to close at US$50.89
a barrel in New York. Brent crude, the international benchmark,
rose 18 cents to close at US$57.10 a barrel in London.
In other trading on the New York Mercantile Exchange:
--- Wholesale gasoline rose 3.2 cents to close at US$1.929
--- Heating oil fell 0.2 cent to close at US$1.664 a gallon.
--- Natural gas increased 1.6 cents to close at US$2.870 per
1,000 cubic feet.
For the US markets fared
The Nasdaq logged its best week in nearly nine months on
Friday, getting a boost from a big jump in Google's stock.
The technology-heavy index closed at an all-time high after
Google surged on a strong earnings report.
Other indexes were mixed. Energy stocks sank after the
price of oil fell for a third straight week.
For the day:
The Dow Jones industrial average dropped 33.80 points, or
0.2 %, to 18,086.45.
The S&P 500 gained 2.35 points, or 0.1 %, to 2,126.64.
The Nasdaq composite climbed 46.96 points, or 0.9%, to
For the week:
The Dow is up 326.94 points, or 1.8 %.
The S&P 500 index is up 50.02 points, or 2.4 per cent.
The Nasdaq is up 212.45 points, or 4.3 %.
For the year:
The Dow is up 263.38 points, or 1.5 %.
The S&P 500 index is up 67.74 points, or 3.3 %.
The Nasdaq is up 474.09 points, or 10 %.
Canadian stocks fell, halting the biggest
rally since February, as raw-materials producers
sank with commodities prices amid a slump
in the nation's currency to a six-year low.
Barrick Gold Corp., the world's largest gold
producer, plunged to a 24-year low to lead
mining companies lower. Raw materials com-
panies tumbled to a seven-month low. Pacific
Rubiales Energy Corp. and Bankers Petroleum
Ltd. lost at least 9.4 per cent, the most among
oil producers as the industry traded near a
RBC, which is widely held by Trinidadians
because of the 2008 sale of the company back
to its Canadian owners, was closed at US$59.51,
down by 0.97 per cent.
The Standard & Poor's/TSX Composite
Index fell 88.24 points, or 0.6 per cent, to
14,642.84 at 4 p.m. in Toronto. The benchmark
equity gauge had gained 3.2 per cent in the
past five days.
"For a lot of the generalists that might've
gone in, they're just reversing their trade and
thinking now is the time to get out," said John
Kim, a fund manager at Aston Hill Financial
in Toronto. His firm manages about C$4 billion.
"It's hard to say what happens next. A lot of
it is predicated on sentiment for where com-
modity prices will be six months down the
Goldcorp Inc. tumbled 6.1 per cent to the
lowest close since October 2008 and Barrick
Gold sank 5.2 per cent to a May 1991 low, as
raw-materials producers tumbled 2.8 per cent
to the lowest level since November. Energy
producers lost 1.3 per cent. Commodities pro-
ducers account for about 30 per cent of the
Gold prices tumbled 1 per cent in New York,
the lowest close since April 2010, as a com-
modity meltdown deepened amid an expanding
glut in supplies of assets from gold to oil and
Four of 10 industries in the S&P/TSX retreat-
ed on trading volume 1.5 per cent above the
30-day average today. Grocery stores and
industrials shares advanced.
The Canadian dollar weakened to a six-year
low amid speculation the nation's central bank
will cut interest rates again to buttress a weak-
ening economy. The price of crude oil, the
nation's top export, is down 51 per cent in the
Energy stocks have slumped 11 per cent this
year, the worst-performing industry in the
Suncor Energy Inc. lost 1.9 per cent and
Encana Corp. fell 2.7 per cent. Brent oil capped
the longest run of weekly declines since January
and West Texas Intermediate crude dropped
3.5 per cent for the week.
The threat of a contracting economy
prompted Bank of Canada Governor Stephen
Poloz to cut his policy interest rate for the
second time this year, to 0.5 per cent from
0.75 per cent on July 15.
Nasdaq logs best week in nearly
nine months as Google jumps
Canadian stocks snap five-day rally as commodities decline
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