Home' Trinidad and Tobago Guardian : July 26th 2015 Contents JULY 26 • 2015 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
STOCKS | SBG9
The US stock market
capped a four-day losing
streak with its biggest
drop of the week. Dis-
results and outlooks
from several companies
pulled the major stock
indexes sharply lower on Friday. New signs
pointing to a slowing of China s economy
also added to investor jitters, bringing down
the price of oil and other commodities.
While corporate profits have mostly exceed-
ed Wall Street s expectations so far this earn-
ings season, investors have grown uneasy as
many companies provided cautious outlooks
or weak sales.
"The revenue numbers have been very
shaky," said JJ Kinahan, TD Ameritrade s chief
strategist. "After next week, we ll have a much
better picture overall how the earnings season
was. But right now, that s the theme that I m
seeing, and it s not a healthy one."
The mixed company earnings increasingly
weighed on stocks as the week wore on. The
Standard & Poor s 500 index has now lost
ground four out of the last five weeks.
The S&P 500 ended the day down 22.50
points, or 1.1 per cent, to 2,079.65, while the
Dow Jones industrial average slid 163.39
points, or 0.9 per cent, to 17,568.53. The Nas-
daq composite lost 57.78 points, or 1.1 per
cent, to 5,088.63.
Stocks kicked off the week on a strong
note, driving the Nasdaq to its latest record
high and bringing the S&P 500 close to a
milestone of its own. But it s been downhill
since then. The Dow fell into negative territory
for the year on Thursday. As of Friday, it was
down 1.4 per cent for 2015.
The tech-focused Nasdaq remains the best-
performing index for the year. It s up 7.4 per
cent, compared with one per cent for the
Trading got off to an uneven start on Friday.
The major indexes were all down by mid-
morning as traders sized up the latest cor-
Biotechnology company Biogen and phar-
maceutical company AbbVie both reported
a better-than-expected second-quarter prof-
its, but their revenue fell short of Wall Street
forecasts. Biogen plunged $85.02, or 22.1 per
cent, to $300.03. AbbVie declined $2.44, or
3.5 per cent, to $68.08.
Capital One Financial, which announced
quarterly results a day earlier that failed to
live up to financial analysts expectations,
sank 13.1 per cent. The stock ended down
$11.91 at $78.86.
Even a dash of merger news, which often
puts investors in a buying mood, failed to
Anthem agreed to buy rival Cigna for $48
billion in a deal that would create the nation s
largest health insurer by enrollment, covering
about 53 million U.S patients. Anthem fell
$4.35, or 2.8 per cent, to $150.86, while Cigna
lost $8.64, or 5.6 per cent, to $145.72.
Investors did welcome Amazon s latest
quarterly report card. The e-commerce pio-
neer announced a surprise profit late Thurs-
day. The stock vaulted $47.24, or 9.8 per
cent, to $529.42.
Nine of the 10 sectors in the S&P 500
ended lower. Health care stocks fell the most,
2.5 per cent. Utilities edged higher.
Of the 187 companies in the S&P 500 that
have reported earnings so far, about 72 per
cent of them have delivered results that beat
Wall Street estimates, according to S&P Cap-
ital IQ. That s better than the historical average
of 66 per cent.
"Generally most companies are seeing
modest growth, but nothing to write home
about," said Brad Sorensen, managing director
of market and sector analysis at Schwab Cen-
ter for Financial Research.
Another 163 companies, or a third of the
S&P 500, are due to report earnings next
week, including Facebook, Twitter and Exxon
In energy trading, the price of oil continued
to slide Friday as the number of rigs drilling
for oil in the US rose. Benchmark US crude
fell 31 cents to close at US$48.14 a barrel in
New York. Crude fell five per cent for the
week, and is down 19 per cent for the month.
Brent crude, a benchmark for international
oils used by many US refineries, fell 65 cents
Friday to close at US$54.62 a barrel in Lon-
In other futures trading, wholesale gasoline
fell 2.4 cents to close at US$1.828 a gallon,
while heating oil fell 2.5 cents to close at
US$1.630 a gallon. Natural gas fell 4 cents
to close at $2.776 per 1,000 cubic feet.
Precious and industrial metals futures
closed broadly lower. Gold lost US$8.60 to
US$1,085.50 an ounce, silver gave up 21 cents
to finish at US$14.48 an ounce and copper
edged down less than a penny to US$2.38 a
The price of US government bonds rose
slightly. The yield on the 10-year Treasury
note fell to 2.26 per cent from 2.27 per cent
KEEPING SCORE: Japan s Nikkei 225 was down
0.7 per cent at 20,545.98 and Hong Kong s Hang
Seng shed 0.9 per cent to 25,178.20. South Korea s
Kospi dropped 1 per cent to 2,045.27. Australia s
S&P/ASX 200 fell 0.7 per cent to 5,553.70. Southeast
Asian markets were lower but China s Shanghai Com-
posite Index rose 0.7 per cent to 4,152.29.
CHINA WEAKNESS: China s manufacturing
slumped to a 15-month low in July in a fresh sign
of deterioration in the world s second biggest economy.
A manufacturing index based on a survey of factory
purchasing managers fell to 48.2 this month from
49.4 in June.
It uses a 100-point scale on which numbers above
50 indicate expansion. Employment in China s giant
manufacturing industry, which employs tens of mil-
lions of people, continued to shrink.
EARNINGS DISMAY: American companies have
mostly reported better-than-anticipated quarterly
profits since the start of the month, but many have
fallen short when it comes to revenue.
Others have issued cautious outlooks, citing the
strength of the dollar, a slowing economy in China
or falling oil prices. That s giving investors reason to
ENERGY: Benchmark US crude was up 35 cents
at US$48.80 a barrel in electronic trading on the
New York Mercantile Exchange. The contract fell 74
cents to close at US$48.45 a barrel in New York on
Thursday. International benchmark Brent crude was
up 25 cents at US$55.52 a barrel on the ICE futures
exchange in London.
CURRENCIES: The euro fell to US$1.0974 from
US$1.0985 in the previous global trading session.
The dollar rose to 123.93 yen from 123.88 yen.
Asia stocks down as China manufacturing weakens
Michael Pistillo, Jr with Barclays monitors stock prices at the New York Stock Exchange, on
Monday, July 13, 2015. US stocks are opening higher after Greece reached an agreement with
its creditors on a new loan package that will help keep the country in the euro. (AP)
How the Dow Jones industrial
average fared on Friday
For the day:
The Dow Jones industrial average lost
163.39 points, or 0.9 per cent, to 17,568.53.
The Standard & Poor's 500 index fell
22.50 points, or 1.1 per cent, to 2,079.65.
The Nasdaq composite shed 57.78 points,
or 1.1 per cent, to 5,088.63.
For the week:
The Dow lost 517.92 points, or 2.9 per
The S&P 500 index fell 46.99 points, or
2.2 per cent.
The Nasdaq fell 121.52 points, or 2.3 per
For the year:
The Dow is down 254.54 points, or 1.4 per
The S&P 500 index is up 20.75 points, or 1
The Nasdaq is up 352.57 points, or 7.4 per
US stocks sink,
S&P 500 index
People cross a street in front of an electronic stock indicator of a securities firm
in Tokyo, Wednesday, July 8, 2015. Hong Kong's main stock index plummeted as
much as 8.5 per cent on Wednesday as a sell-off in mainland Chinese shares
accelerated despite new measures to support the market. Japan's Nikkei 225 fell
3.1 per cent to 19,737.64. (AP)
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