Home' Trinidad and Tobago Guardian : August 16th 2015 Contents Arocky week for the stock
market ended on a bright
note as investors bought
stocks across industries.
Stocks wavered in the morning before climb-
ing steadily during the afternoon amid a mix
of earnings results. The market also got a lift
as China s currency steadied after a slump
earlier in the week that shook financial markets
around the world. The gains were modest but
broad, with nine of the 10 sectors of the Stan-
dard and Poor s 500 index ending higher.
The S&P 500 climbed 8.15 points, or 0.4
per cent, to 2,091.54. The Dow Jones industrial
average rose 69.15 points, or 0.4 per cent, to
end at 17,477.40. The Nasdaq composite rose
14.68 points, or 0.3 per cent, to 5,048.24.
At the close of stock trading, the dollar was
buying 6.391 Chinese yuan, little changed
from the previous day. Reassuring comments
from a Chinese central bank official on Thurs-
day seemed to ease concerns that China s gov-
ernment would seek to devalue its currency
further. Investors were worried that the deval-
uation suggested the world s second-largest
economy could be more fragile than they pre-
"We were in a sell-first-ask-questions-later
mode, but we ve rallied back," said Piers Cor-
nelius, a managing director at JP Morgan Private
Bank. He says he expects stocks to stabilise
over the next few weeks as companies, flush
with record cash, continue to buy back their
Stocks of retailers rallied after some solid
Nordstrom rose US$3.21, or 4.3 per cent,
US$78.13 after beating analysts expectations
in results announced late Thursday. JC Penney
rose 45 cents, or 5.6 per cent, to US$8.52 after
a narrower loss on stronger-than-expected
sales as the retail chain continues to turn its
Investors are hoping for good news in the
current quarter, too. On Thursday, the Com-
merce Department reported US retail sales
climbed last month, suggesting that strong
hiring and lower gas prices are encouraging
consumers to spend more.
Sean Lynch, co-head of global equity strat-
egy at Wells Fargo Investment Institute, said
investors have been remarkably calm in the
face of several potentially unnerving events,
including a slowing Chinese economy, Greece s
debt troubles, plunging oil prices and the Fed-
eral Reserve possibly raising interest rates next
"You ve got recurrent issues worrying the
market ... yet it s been pretty lethargic," he
said. "It s been trading at a narrow range
despite all the noise."
The S&P 500 is basically unchanged in the
last six months. For the week, it rose 0.7 per
Europe had a tougher week. Germany s DAX
fell 4.4 per cent, the CAC-40 in France
dropped 3.9 per cent and Britain s FTSE 100
was down 2.5 per cent. All three indexes were
In addition to worries about China, European
economic growth is weak. Figures from the
European Union s statistics agency on Friday
showed that growth across the region was 0.3
per cent, down slightly from 0.4 per cent
growth in the first three months of the year.
Among other US stocks making big moves:
• Applied Materials fell 41 cents, or 2.4 per
cent, to US$16.64 after the chip-making equip-
ment company said that revenue for its most
recent reporting period fell short of analysts
expectations. The company also said sales for
the current quarter could fall as much as seven
• Sysco rose US$2.86, or 7.4 per cent, to
US$41.38 after an investment firm run by
activist investor Nelson Peltz said it had
acquired a 7.1 per cent stake, making it the
food distributor s largest shareholder.
The price of US oil rose slightly, but still
ended the week sharply lower as rising supplies
continue to outpace global demand growth.
US crude rose 27 cents Friday to close at
US$42.50. For the week, it was down three
per cent after hitting a six-year low on Thurs-
day. Brent crude, a benchmark for international
oils used by many US refineries, fell 19 cents
to close at US$49.03 in London.
In other futures trading on the NYMEX:
• Wholesale gasoline fell 2.7 cents to close
at US$1.687 a gallon.
• Heating oil fell 1.1 cents to close at US$1.558
• Natural gas rose 1.4 cents to close at
US$2.801 per 1,000 cubic feet.
In metals trading, gold fell US$2.90 to
US$1,112.70 an ounce and silver dropped 18.6
cents to US$15.21 an ounce. Copper was little
changed at US$2.35 per pound.
Prices of US government bonds barely
moved, keeping the 10-year Treasury yield at
2.19 per cent. AP
AUGUST 16 • 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
rose 69.15 points, or 0.4 per cent, to
The Standard & Poor's 500 index
gained 8.15 points, or 0.4 per cent, to
The Nasdaq composite climbed 14.68
points, or 0.3 per cent, to 5,048.24.
For the week:
The Dow is up 104.02 points, or 0.6
The S&P 500 index is up 13.97
points, or 0.7 per cent.
The Nasdaq is up 4.69 points, or 0.1
For the year:
The Dow is down 345.67 points, or
1.9 per cent.
The S&P 500 index is up 32.64
points, or 1.6 per cent.
The Nasdaq is up 312.18 points, or
6.6 per cent.
The German economy picked up pace in the second
quarter of the year, growing by 0.4 per cent from the
previous three-month period, official figures showed
Friday. Europe s biggest economy had grown by 0.3
per cent in the first quarter. As a result, Germany s
year-on-year growth increased to 1.6 per cent from
1.2 per cent.
Analysts said growth was driven largely by exports, a traditional
strength of the German economy. These have been helped by the
weak euro, which makes sales outside the common-currency area
"The eurozone powerhouse has successfully defied external tur-
bulences," Carsten Brzeski of ING Bank wrote in an analyst note,
noting that the Greek crisis and the Chinese stock market collapse
haven t had the negative impact on German growth some had feared.
"Record high employment, low inflation and decent wage growth
remain strong trumps for the domestic economy and bode well for
the second half of the year," he said.
However, Brzeski cautioned that China s recent slowdown could
hurt German exports and growth.
Germany s quarterly growth rate has averaged 0.4 per cent over
the past year. AP
Yuan and oil
US stocks a lift
German economy gets euro boost to grow 0.4 per cent in Q2
Traders work on the floor of the New York Stock Exchange, Thursday, August 13, 2015. Global
stocks are steadying as the decline in China's currency slowed and the country's central bank
tried to ease fears of more big declines.
A man is reflected on an electronic stock indicator of a securities firm in Tokyo, Tuesday, August 11, 2015. Global stocks
and Asian currencies fell after China unexpectedly devalued its yuan in response to weakening trade and growth. Tokyo's
Nikkei 225 lost 0.4 per cent to 20,720.75 and Seoul's Kospi was off 0.8 per cent at 1,986.65.
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