Home' Trinidad and Tobago Guardian : August 9th 2015 Contents US stocks fell Friday after a
solid jobs report kept alive
the possibly that the Federal
Reserve may raise interest
rates as soon as next month.
It was the seventh straight day of declines
for the Dow Jones industrial average. That s
the longest losing streak for the index since
July 2011, when investors were worried that
the US would slip back into recession.
Stocks started the day lower after the report
was released and stayed there throughout the
day. Fed policy makers have held rates at close
to zero for more than six years to stimulate
the economy after the Great Recession. The
low rates have been good for the stock market,
helping fuel a bull-market run that has lasted
since March, 2009.
US employers added 215,000 jobs in July,
the Labor Department said Friday, another
signal that the job market is steadily improving
and providing another key piece of data for
the Fed as it assesses whether the US economy
can withstand higher interest rates.
While the number was slightly below the
225,000 jobs Wall Street economists were
forecasting, traders said the data was still good
enough to show that the US economy is con-
tinuing to improve.
"Today s number was not weak enough to
dissuade the Fed," said Jurrien Timmer, director
of global macro at Fidelity Investments, who
predicts that the Fed will raise rates for the
first time since 2006 in September.
The Dow lost 46.37 points, or 0.3 per cent,
to 17,373.38. The index is now down 2.5 per
cent for the year, and is about five per cent
below its record close of 18,312.39 set May 19.
The Standard & Poor s 500 index fell 5.99
points, or 0.3 per cent, to 2,077.57 and the
Nasdaq composite fell 12.90 points, or 0.3 per
cent, to 5,043.54.
Among individual stocks, American Express
was a big mover.
The credit card company jumped US$4.72,
or 6.3 per cent, to US$79.72 after Bloomberg
reported that activist investors ValueAct Capital
Management had amassed a US$1 billion stake
in the company and would press for changes
there that would benefit investors.
In bond trading, yields on two- and three-
year Treasury notes rose immediately after
the jobs report was published.
The yield on the two-year note climbed to
0.72 per cent from 0.69 per cent on Thursday.
It was as low as 0.41 per cent in January.
Shorter-dated Treasuries would be most affect-
ed by the Fed raising rates.
The yield on the 10-year Treasury note fell
to 2.17 per cent from 2.23 per cent a day ear-
lier.In currency trading, the dollar fell against
the euro and the yen. The euro rose to 1.096
and the dollar dropped to 124.23 yen.
In other markets, the price of oil fell for the
sixth trading day out of the last seven as the
number of rigs operating in the US rose, rein-
forcing expectations that a global supply glut
US crude fell 79 cents to close at US$43.87
a barrel in New York, nearing a six-year low
of US$43.46 set on March 17. For the week,
crude fell 7 per cent. Brent crude, a benchmark
for international oils used by many US refiner-
ies, fell 91 cents Friday to close at US$48.61
The slump in crude helped push energy
stocks lower again. The sector is down 16 per
cent this year, making it the worst performer
in the S&P 500.
In other energy futures trading, wholesale
gasoline fell 2.5 cents to close at US$1.623 a
gallon. Heating oil fell 0.6 cents to close at
US$1.544 a gallon. Natural gas fell 1.5 cents
to close at US$2.798 per 1,000 cubic feet.
In metals trading, the price of gold rose
US$4 to US$1,094.10 an ounce. Silver climbed
14.4 cents to US$14.82 an ounce. Copper fell
0.8 cents to US$2.33 a pound.
AUGUST 9 • 2015 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
STOCKS | SBG9
How the Dow Jones industrial
average fared on Friday
For the day:
The Dow Jones industrial average lost
46.37 points, or 0.3 per cent, to 17,373.38.
The Standard & Poor's 500 index fell
5.99 points, or 0.3 per cent, to 2,077.57.
The Nasdaq composite declined 12.90
points, or 0.3 per cent, to 5,043.54.
For the week:
The Dow Jones industrial average lost
316.48 points, or 1.8 per cent.
The Standard & Poor's 500 index is
down 26.27 points, or 1.3 per cent.
The Nasdaq composite is down 84.74
points, or 1.7 per cent.
For the year:
The Dow is down 449.69 points, or 2.5
The S&P 500 index is up 18.67 points,
or 0.9 per cent.
The Nasdaq is up 307.49 points, or 6.5
US stocks drop
after solid jobs
Chinese stocks rose Friday while
other Asian markets followed
Wall Street lower as investors
looked ahead to US jobs data and
a meeting of Japan s central bank.
KEEPING SCORE: The Shanghai Com-
posite Index rose 1.9 per cent to 3,731.75 and
Hong Kong s Hang Seng added 0.9 per cent
to 24,605.25. Tokyo s Nikkei 225 shed 0.2 per
cent to 20,616.43 and Sydney s S&P/ASX 200
lost 1.8 per cent to 5,505.40. Seoul s Kospi
edged down 0.1 per cent to 2,010.75. Taiwan,
New Zealand and Jakarta also declined.
CHINA S WOBBLES: The Shanghai
index s gain, on top of Thursday s 0.9 per cent
rise, follows multibillion-dollar government
efforts to stop a slide in stock prices.
The Shanghai index rose 150 per cent begin-
ning in late 2014 before hitting a peak in June
Traders are waiting to see when Beijing will
withdraw controls that include a ban on sales
by big shareholders and curbs on short sell-
US JOBS: Forecasters expect the Labor
Department s monthly jobs report due out Fri-
day to show employers added 225,000 jobs
and the unemployment rate held at 5.3 per
cent. That would buttress expectations the
Fed will lift its benchmark interest rate later
WATCHING JAPAN: Investors were
watching a Bank of Japan meeting on Friday
for signs of whether it might expand stimulus.
Japan is below hitting the bank s inflation target
of 2 per cent.
CURRENCIES: The dollar gained to 124.82
yen from Thursday s 124.68 yen. The euro
slipped to US$1.0915 from US$1.0926. AP
In this Tuesday, June 30, 2015, file photo, Specialist Robert Tuccillo, foreground, works at his
post on the floor of the New York Stock Exchange. History suggests it's unwise to bet against
this bull market. It has been rising despite two Greece debt crises, a near default by the US on
its own debt, also twice, the stripping of its AAA credit rating, several towns and cities going
bankrupt, including Detroit, the biggest ever, and, recently, Beijing's failed efforts to avert a
crash in its stock market, raising the possibility it might not succeed in letting the air out of a
massive credit and property bubble without tripping up the world's second biggest economy
and sending markets elsewhere crashing. AP
China stocks up, other Asian markets lower after US losses
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